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2024-07-16 Council FIN Packet1 2 OF BbMG ti Agenda Edmonds City Council 1,00 FINANCE COMMITTEE CITY COUNCIL CONFERENCE ROOM 121 - 5TH AVENUE N, EDMONDS, WA 98020 J U LY 16, 2024, 5:30 PM COUNCIL COMMITTEE MEETINGS ARE WORK SESSIONS FOR THE COUNCIL AND CITY STAFF. COMMITTEE MEETING AGENDAS DO NOT INCLUDE AUDIENCE COMMENTS OR PUBLIC HEARINGS. STAFF AND COUNCILMEMBERS ATTEND COMMITTEE MEETINGS VIRTUALLY, AND MEMBERS OF THE PUBLIC ARE ENCOURAGED TO ATTEND THE SAME WAY. PERSONS WISHING TO ATTEND THIS MEETING VIRTUALLY IN LIEU OF IN -PERSON ATTENDANCE CAN CLICK ON OR PASTE THE FOLLOWING ZOOM MEETING LINK INTO A WEB BROWSER USING A COMPUTER OR SMART PHONE: HTTPS://ZOOM. US/J/95798484261 OR JOIN BY DIAL -UP PHONE: US: +1 253 215 8782 WEBINAR ID: 957 9848 4261 IF MEMBERS OF THE PUBLIC CANNOT ACCESS THE VIRTUAL COMMITTEE MEETINGS WITH THEIR PERSONAL DEVICES, A MONITOR IS PROVIDED AT THE CITY COUNCIL CONFERENCE ROOM AT 121 5TH AVE N, EDMONDS WA. COMMITTEE MEMBERS: WILL CHEN (CHAIR), JENNA NAND, COUNCIL PRESIDENT (EX-OFFICIO MEMBER) CALL TO ORDER COMMITTEE BUSINESS 1. Mountlake Terrace ILA (10 min) 2. ERP Contract finance committee review 1 (20 min) 3. Surplus equipment (10 min) 4. Opioid Participation Form (5 min) 5. Financial Policies (30 min) 6. June 2024 Quarterly Financial Report (10 min) 7. 2024 July Budget Amendment Ordinance (30 min) ADJOURNMENT: 7:30 PM Edmonds City Council Agenda July 16, 2024 Page 1 2.1 City Council Agenda Item Meeting Date: 07/16/2024 Mountlake Terrace ILA Staff Lead: {Type Name of Staff Lead} Department: Information Services Preparer: Brian Tuley Background/History The City of Mountlake Terrace is asking to enter into an inter local agreement the City of Edmonds for software purchase. Staff Recommendation Staff recommends this ILA move to consent on the next available full council meeting. Narrative The City of Mountlake Terrace desires to purchase software the City of Edmonds is currently using. Washington RCW provides for municipalities to purchase off existing competitive price contracts from other municipalities using an interlocal agreement. This ILA is of no cost to Edmonds. Attachments: I LA._Mou ntLake.2024.06.27doc Packet Pg. 2 2.1.a COOPERATIVE PURCHASING AGREEMENT In accordance with RCW Chapter 39.34 and to all other applicable laws, The City of Mountlake Terrace and the City of Edmonds, each of which may hereinafter be referred to as "agency," hereby agree to this cooperative governmental purchasing agreement ("Agreement") for various supplies, materials, equipment and routine, expert and/or consultant services, software, cloud services & platforms, using competitively awarded contracts. The following terms and conditions shall apply: 1. Each agency, in contracting for the purchase of supplies, materials, equipment and services, agrees at its discretion, to extend contracts for shared use to the extent permitted by law and agreed upon by those parties and vendors. 2. Each agency is responsible for compliance with any additional or varying laws and regulations regarding purchases. 3. The originating contracting agency does not accept responsibility or liability for the performance of any vendor used by the purchasing agency as a result of this Agreement. 4. Each agency shall be responsible for the payment of any item(s) purchased through a contract or purchase order that resulted from this Agreement. 5. This Agreement shall remain in force until cancelled in writing by either party. 0 Name: Mike Rosen IN Name: Title: City of Edmonds, Mayor Title: Date: Date: Packet Pg. 3 2.2 City Council Agenda Item Meeting Date: 07/16/2024 ERP Contract finance committee review 1 Staff Lead: {Type Name of Staff Lead} Department: Information Services Preparer: Brian Tuley Background/History The City needs to upgrade the financial system. The legacy system is set for vendor deprecation. Staff Recommendation Request next steps from committee. Schedule follow up question session with committee, or move to full council discussion. Narrative The agenda packet contains 2 documents. The first is the vendor statement of work and price quote to upgrade our legacy accounting system to Munis ERP. Second is a spreadsheet breaking out costs per year over the next 4 years. The project estimated time to implement is 28 months. Attachments: Edmonds, WA SaaS Migration 062624 Eden —Cost —Model Packet Pg. 4 2.2.a • ••::•. t y Ier . • technologies SOFTWARE AS A SERVICE AGREEMENT This Software as a Service Agreement is made between Tyler Technologies, Inc. and Client. WHEREAS, Client selected Tyler to provide certain products and services set forth in the Investment Summary, including providing Client with access to Tyler's proprietary software products, and Tyler desires to provide such products and services under the terms of this Agreement; NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and promises set forth in this Agreement, Tyler and Client agree as follows: SECTION A — DEFINITIONS • "Agreement" means this Software as a Services Agreement. • "Business Travel Policy" means our business travel policy. A copy of our current Business Travel Policy is attached as Schedule 1 to Exhibit B. • "Client" means City of Edmonds, Washington. • "Data" means your data necessary to utilize the Tyler Software. • "Data Storage Capacity" means the contracted amount of storage capacity for your Data identified in the Investment Summary. • "Defect" means a failure of the Tyler Software to substantially conform to the functional descriptions set forth in our written proposal to you, or their functional equivalent. Future functionality may be updated, modified, or otherwise enhanced through our maintenance and support services, and the governing functional descriptions for such future functionality will be set forth in our then -current Documentation. For the avoidance of doubt, security vulnerabilities in the Tyler Software are considered to be a Defect. • "Defined Users" means the number of users that are authorized to use the SaaS Services. The Defined Users for the Agreement are as identified in the Investment Summary. If Exhibit A contains Enterprise Permitting & Licensing labeled software, defined users mean the maximum number of named users that are authorized to use the Enterprise Permitting & Licensing labeled modules as indicated in the Investment Summary. • "Developer" means a third party who owns the intellectual property rights to Third Party Software. • "Documentation" means any online or written documentation related to the use or functionality of the Tyler Software that we provide or otherwise make available to you, including instructions, user guides, manuals and other training or self-help documentation. • "Effective Date" means the date by which both your and our authorized representatives have signed the Agreement. • "Force Majeure" means an event beyond the reasonable control of you or us, including, without limitation, governmental action, war, riot or civil commotion, fire, natural disaster, or any other cause that could not with reasonable diligence be foreseen or prevented by you or us. • "Investment Summary" means the agreed upon cost proposal for the products and services ••., tyler Packet Pg. 5 2.2.a attached as Exhibit A. • "Invoicing and Payment Policy" means the invoicing and payment policy. A copy of our current Invoicing and Payment Policy is attached as Exhibit B. • "Order Form" means an ordering document that includes a quote or investment summary and specifying the items to be provided by Tyler to Client, including any addenda and supplements thereto. • "SaaS Fees" means the fees for the SaaS Services identified in the Investment Summary. • "SaaS Services" means software as a service consisting of system administration, system management, and system monitoring activities that Tyler performs for the Tyler Software, and includes the right to access and use the Tyler Software, receive maintenance and support on the Tyler Software, including Downtime resolution under the terms of the SLA, and Data storage and archiving. SaaS Services do not include support of an operating system or hardware, support outside of our normal business hours, or training, consulting or other professional services. • "SLA" means the service level agreement. A copy of our current SLA is attached hereto as L Exhibit C. c • "Statement of Work" means the industry standard implementation plan describing how our 0 c) professional services will be provided to implement the Tyler Software, and outlining your and our roles and responsibilities in connection with that implementation. The Statement of Work is w attached as Exhibit E. le N • "Support Call Process" means the support call process applicable to all of our customers who have licensed the Tyler Software. A copy of our current Support Call Process is attached as Schedule 1 to Exhibit C. 0 • "Third Party Hardware" means the third party hardware, if any, identified in the Investment w � Summary. • "Third Party Products" means the Third Party Software and Third Party Hardware. • "Third Party SaaS Services" means software as a service provided by a third party, if any, identified in the Investment Summary. • "Third Party Services" means the third party services, if any, identified in the Investment Summary. • "Third Party Software" means the third party software, if any, identified in the Investment Summary. • "Third Party Terms" means, if any, the end user license agreement(s) or similar terms for the Third Party Products or other parties' products or services, as applicable, and attached or indicated at Exhibit D. • "Tyler" means Tyler Technologies, Inc., a Delaware corporation. • "Tyler Software" means our proprietary software, including any integrations, custom modifications, and/or other related interfaces identified in the Investment Summary and licensed by us to you through this Agreement. • "we "us", "our" and similar terms mean Tyler. • "you" and similar terms mean Client. SECTION B — SAAS SERVICES 1. Rights Granted. 1.1 We grant to you the non-exclusive, non -assignable limited right to use the SaaS Services solely for your internal business purposes for the number of Defined Users only. The Tyler Software ••., tyler Packet Pg. 6 2.2.a will be made available to you according to the terms of the SLA. You acknowledge that we have no delivery obligations and we will not ship copies of the Tyler Software as part of the SaaS Services. You may use the SaaS Services to access updates and enhancements to the Tyler Software, as further described in Section C(9). 2. SaaS Fees. You agree to pay us the SaaS Fees. Those amounts are payable in accordance with our Invoicing and Payment Policy. The SaaS Fees are based on the number of Defined Users and amount of Data Storage Capacity. You may add additional users or additional data storage capacity on the terms set forth in Section H(1). In the event you regularly and/or meaningfully exceed the Defined Users or Data Storage Capacity, we reserve the right to charge you additional fees commensurate with the overage(s). 3. Ownership. ca 3.1 We retain all ownership and intellectual property rights to the SaaS Services, the Tyler Software, and anything developed by us under this Agreement. You do not acquire under this Agreement v any license to use the Tyler Software in excess of the scope and/or duration of the SaaS Services. w 3.2 The Documentation is licensed to you and may be used and copied by your employees for le internal, non-commercial reference purposes only. 3.3 You retain all ownership and intellectual property rights to the Data. You expressly recognize that except to the extent necessary to carry out our obligations contained in this Agreement, we do not create or endorse any Data used in connection with the SaaS Services. 4. Restrictions. You may not: (a) make the Tyler Software or Documentation resulting from the SaaS Services available in any manner to any third party for use in the third party's business operations; (b) modify, make derivative works of, disassemble, reverse compile, or reverse engineer any part of the SaaS Services; (c) access or use the SaaS Services in order to build or support, and/or assist a third party in building or supporting, products or services competitive to us; or (d) license, sell, rent, lease, transfer, assign, distribute, display, host, outsource, disclose, permit timesharing or service bureau use, or otherwise commercially exploit or make the SaaS Services, Tyler Software, or Documentation available to any third party other than as expressly permitted by this Agreement. 5. Software Warranty. We warrant that the Tyler Software will perform without Defects during the term of this Agreement. If the Tyler Software does not perform as warranted, we will use all reasonable efforts, consistent with industry standards, to cure the Defect in accordance with the maintenance and support process set forth in Section C(9), below, the SLA and our then current Support Call Process. 6. Security Vulnerabilities. Security Vulnerability remediation will be prioritized based on the severity of the vulnerability, according to Tyler's internal policies. 7. SaaS Services. 6.1 Our SaaS Services are audited at least yearly in accordance with the AICPA's Statement on Standards for Attestation Engagements ("SSAE") No. 21. We have attained, and will maintain, SOC 1 and SOC 2 compliance, or its equivalent, for so long as you are timely paying for SaaS ••., tyler Packet Pg. 7 2.2.a Services. The scope of audit coverage varies for some Tyler Software solutions. Upon execution of a mutually agreeable Non -Disclosure Agreement ("NDA"), we will provide you with a summary of our compliance report(s) or its equivalent. Every year thereafter, for so long as the NDA is in effect and in which you make a written request, we will provide that same information. If our SaaS Services are provided using a 3rd party data center, we will provide available compliance reports for that data center. 6.2 You will be hosted on shared hardware in a Tyler data center or in a third -party data center. In either event, databases containing your Data will be dedicated to you and inaccessible to our other customers. 6.3 Our Tyler data centers have fully -redundant telecommunications access, electrical power, and the required hardware to provide access to the Tyler Software in the event of a disaster or component failure. In the event of a data center failure, we reserve the right to employ our disaster recovery plan for resumption of the SaaS Services. In that event, we commit to a Recovery Point Objective ("RPO") of 24 hours and a Recovery Time Objective ("RTO") of 24 v hours. RPO represents the maximum duration of time between the most recent recoverable CL copy of your hosted Data and subsequent data center failure. RTO represents the maximum w duration of time following data center failure within which your access to the Tyler Software N must be restored. cc 6.4 We conduct annual penetration testing of either the production network and/or web application to be performed. We will maintain industry standard intrusion detection and prevention systems to monitor malicious activity in the network and to log and block any such activity. We will provide you with a written or electronic record of the actions taken by us in the event that any unauthorized access to your database(s) is detected as a result of our security protocols. We will undertake an additional security audit, on terms and timing to be mutually agreed to by the parties, at your written request. You may not attempt to bypass or subvert security restrictions in the SaaS Services or environments related to the Tyler Software. Unauthorized attempts to access files, passwords or other confidential information, and unauthorized vulnerability and penetration test scanning of our network and systems (hosted or otherwise) is prohibited without the prior written approval of our IT Security Officer. 6.5 We test our disaster recovery plan on an annual basis. Our standard test is not client -specific Should you request a client -specific disaster recovery test, we will work with you to schedule and execute such a test on a mutually agreeable schedule. At your written request, we will provide test results to you within a commercially reasonable timeframe after receipt of the request. 6.6 We will be responsible for importing back-up and verifying that you can log -in. You will be responsible for running reports and testing critical processes to verify the returned Data. 6.7 We provide secure Data transmission paths between each of your workstations and our servers. 6.8 Tyler data centers are accessible only by authorized personnel with a unique key entry. All other visitors to Tyler data centers must be signed in and accompanied by authorized personnel. Entry attempts to the data center are regularly audited by internal staff and external auditors to ensure no unauthorized access. ••., tyler 4 Packet Pg. 8 2.2.a 6.9 Where applicable with respect to our applications that take or process card payment data, we are responsible for the security of cardholder data that we possess, including functions relating to storing, processing, and transmitting of the cardholder data and affirm that, as of the Effective Date, we comply with applicable requirements to be considered PCI DSS compliant and have performed the necessary steps to validate compliance with the PCI DSS. We agree to supply the current status of our PCI DSS compliance program in the form of an official Attestation of Compliance, which can be found at https://www.tylertech.com/about- us/compliance, and in the event of any change in our status, will comply with applicable notice requirements. License Rights Terminate Upon Migration. When Tyler makes Tyler Software identified in the Investment Summary (the "Evergreen Modules") and licensed pursuant to this Agreement available to the Client for use in live production, the license to the Tyler software listed in Exhibit L A, Schedule 1 (hereafter, "Migration Modules") terminates, as do Tyler's maintenance, support, _ and/or update obligations for such software. v a Notice of Data Breach. In the event of any confirmed breach of your Data, Tyler will follow the w Washington state Data Breach Notification law, and any other applicable state or federal law. le SECTION C —PROFESSIONAL SERVICES 1. Professional Services. We will provide you the various implementation -related services itemized in the Investment Summary and described in the Statement of Work. 2. Professional Services Fees. You agree to pay us the professional services fees in the amounts set forth in the Investment Summary. Those amounts are payable in accordance with our Invoicing and Payment Policy. You acknowledge that the fees stated in the Investment Summary are good -faith estimates of the amount of time and materials required for your implementation. We will bill you the actual fees incurred based on the in -scope services provided to you. Any discrepancies in the total values set forth in the Investment Summary will be resolved by multiplying the applicable hourly rate by the quoted hours. 3. Additional Services. The Investment Summary contains, and the Statement of Work describes, the scope of services and related costs (including programming and/or interface estimates) required for the project based on our understanding of the specifications you supplied. If additional work is required, or if you use or request additional services, we will provide you with an addendum or change order, as applicable, outlining the costs for the additional work. The price quotes in the addendum or change order will be valid for thirty (30) days from the date of the quote. 4. Cancellation. If you cancel services less than four (4) weeks in advance (other than for Force Majeure or breach by us), you will be liable for all (a) daily fees associated with cancelled professional services if we are unable to reassign our personnel and (b) any non-refundable travel expenses already incurred by us on your behalf. We will make all reasonable efforts to reassign personnel in the event you cancel within four (4) weeks of scheduled commitments. 5. Services Warranty. We will perform the services in a professional, workmanlike manner, consistent with industry standards. In the event we provide services that do not conform to this warranty, we ••. tyler Packet Pg. 2.2.a will re -perform such services at no additional cost to you. 6. Site Access and Requirements. At no cost to us, you agree to provide us with full and free access to your personnel, facilities, and equipment as may be reasonably necessary for us to provide implementation services, subject to any reasonable security protocols or other written policies provided to us as of the Effective Date, and thereafter as mutually agreed to by you and us. 7. Background Checks. For at least the past twelve (12) years, all of our employees have undergone criminal background checks prior to hire. All employees sign our confidentiality agreement and security policies. 8. Client Assistance. You acknowledge that the implementation of the Tyler Software is a cooperative process requiring the time and resources of your personnel. You agree to use all reasonable efforts to cooperate with and assist us as may be reasonably required to meet the agreed upon project deadlines and other milestones for implementation. This cooperation includes at least working with us to schedule the implementation -related services outlined in this Agreement. We will not be v liable for failure to meet any deadlines and milestones when such failure is due to Force Majeure or to the failure by your personnel to provide such cooperation and assistance (either through action w or omission). 7t 9. Maintenance and Support. For so long as you timely pay your SaaS Fees according to the Invoicing and Payment Policy, then in addition to the terms set forth in the SLA and the Support Call Process, we will: 9.1 perform our maintenance and support obligations in a professional, good, and workmanlike manner, consistent with industry standards, to resolve Defects in the Tyler Software (subject to any applicable release life cycle policy); 9.2 provide support during our established support hours; 9.3 maintain personnel that are sufficiently trained to be familiar with the Tyler Software and Third Party Software, if any, in order to provide maintenance and support services; 9.4 make available to you all releases to the Tyler Software (including updates and enhancements) that we make generally available without additional charge to customers who have a maintenance and support agreement in effect; and 9.5 provide non -Defect resolution support of prior releases of the Tyler Software in accordance with any applicable release life cycle policy. We will use all reasonable efforts to perform support services remotely. Currently, we use a third - party secure unattended connectivity tool called Bomgar, as well as GotoAssist by Citrix. Therefore, you agree to maintain a high-speed internet connection capable of connecting us to your PCs and server(s). You agree to provide us with a login account and local administrative privileges as we may reasonably require to perform remote services. We will, at our option, use the secure connection to assist with proper diagnosis and resolution, subject to any reasonably applicable security protocols. If we cannot resolve a support issue remotely, we may be required to provide onsite services. In such event, we will be responsible for our travel expenses, unless it is determined that the reason ••., tyler Packet Pg. 10 2.2.a onsite support was required was a reason outside our control. Either way, you agree to provide us with full and free access to the Tyler Software, working space, adequate facilities within a reasonable distance from the equipment, and use of machines, attachments, features, or other equipment reasonably necessary for us to provide the maintenance and support services, all at no charge to us. We strongly recommend that you also maintain your VPN for backup connectivity purposes. For the avoidance of doubt, SaaS Fees do not include the following services: (a) onsite support (unless Tyler cannot remotely correct a Defect in the Tyler Software, as set forth above); (b) application design; (c) other consulting services; or (d) support outside our normal business hours as listed in our then -current Support Call Process. Requested services such as those outlined in this section will be billed to you on a time and materials basis at our then current rates. You must request those services with at least one (1) weeks' advance notice. ca 10. Support of Migration Modules. Beginning on the commencement of the initial term as set forth in Section F (1) of this Agreement, and contingent upon Client's timely payment of annual SaaS Fees v for Tyler Evergreen Modules, Client is entitled to receive, at no additional charge, maintenance and support for the Migration Modules until Tyler makes the Tyler Evergreen Modules available for use w in live production. le SECTION D — THIRD PARTY PRODUCTS 1. Third Party Hardware. We will sell, deliver, and install onsite the Third Party Hardware, if you have purchased any, for the price set forth in the Investment Summary. Those amounts are payable in accordance with our Invoicing and Payment Policy. 2. Third Party Software. As part of the SaaS Services, you will receive access to the Third Party Software and related documentation for internal business purposes only. Your rights to the Third Party Software will be governed by the Third Party Terms. 3. Third Party Products Warranties. 3.1 We are authorized by each Developer to grant access to the Third Party Software. 3.2 The Third Party Hardware will be new and unused, and upon payment in full, you will receive free and clear title to the Third Party Hardware. 3.3 You acknowledge that we are not the manufacturer of the Third Party Products. We do not warrant or guarantee the performance of the Third Party Products. However, we grant and pass through to you any warranty that we may receive from the Developer or supplier of the Third Party Products. 4. Third Party Services. If you have purchased Third Party Services, those services will be provided independent of Tyler by such third -party at the rates set forth in the Investment Summary and in accordance with our Invoicing and Payment Policy. SECTION E - INVOICING AND PAYMENT; INVOICE DISPUTES ••., tyler Packet Pg. 11 2.2.a 1. Invoicing and Payment. We will invoice you the SaaS Fees and fees for other professional services in the Investment Summary per our Invoicing and Payment Policy, subject to Section E(2). 2. Invoice Disputes. If you believe any delivered software or service does not conform to the warranties in this Agreement, you will provide us with written notice within thirty (30) days of your receipt of the applicable invoice. The written notice must contain reasonable detail of the issues you contend are in dispute so that we can confirm the issue and respond to your notice with either a justification of the invoice, an adjustment to the invoice, or a proposal addressing the issues presented in your notice. We will work with you as may be necessary to develop an action plan that outlines reasonable steps to be taken by each of us to resolve any issues presented in your notice. You may withhold payment of the amount(s) actually in dispute, and only those amounts, until we complete the action items outlined in the plan. If we are unable to complete the action items outlined in the action plan because of your failure to complete the items agreed to be done by you, then you will remit full payment of the invoice. We reserve the right to suspend delivery of all SaaS Services, including maintenance and support services, if you fail to pay an invoice not disputed as described above within fifteen (15) days of notice of our intent to do so. v a SECTION F —TERM AND TERMINATION w 1. Term. The initial term of this Agreement equal to three (3) years, commencing on January 1, 2025, unless earlier terminated as set forth below. Upon expiration of the initial term, this Agreement will renew automatically for additional one (1) year renewal terms at our then -current SaaS Fees unless terminated in writing by either party at least sixty (60) days prior to the end of the then -current renewal term. Your right to access or use the Tyler Software and the SaaS Services will terminate at the end of this Agreement. 2. Termination. This Agreement may be terminated as set forth below. In the event of termination, you will pay us for all undisputed fees and expenses related to the software, products, and/or services you have received, or we have incurred or delivered, prior to the effective date of termination. Disputed fees and expenses in all terminations other than your termination for cause must have been submitted as invoice disputes in accordance with Section E(2). 2.1 Failure to Pay SaaS Fees. You acknowledge that continued access to the SaaS Services is contingent upon your timely payment of SaaS Fees. If you fail to timely pay the SaaS Fees, we may discontinue the SaaS Services and deny your access to the Tyler Software. We may also terminate this Agreement if you don't cure such failure to pay within forty-five (45) days of receiving written notice of our intent to terminate. 2.2 For Cause. If you believe we have materially breached this Agreement, you will invoke the Dispute Resolution clause set forth in Section H(3). You may terminate this Agreement for cause in the event we do not cure, or create a mutually agreeable action plan to address, a material breach of this Agreement within the thirty (30) day window set forth in Section H(3). 2.3 Force Majeure. Either party has the right to terminate this Agreement if a Force Majeure event suspends performance of the SaaS Services for a period of forty-five (45) days or more. 2.4 Lack of Appropriations. If you should not appropriate or otherwise make available funds sufficient to utilize the SaaS Services, you may unilaterally terminate this Agreement upon thirty ••., tyler Packet Pg. 12 2.2.a (30) days written notice to us. You will not be entitled to a refund or offset of previously paid, but unused SaaS Fees. You agree not to use termination for lack of appropriations as a substitute for termination for convenience. SECTION G — INDEMNIFICATION, LIMITATION OF LIABILITY AND INSURANCE 1. Intellectual Property Infringement Indemnification. 1.1 We will defend you against any third party claim(s) that the Tyler Software or Documentation infringes that third party's patent, copyright, or trademark, or misappropriates its trade secrets, and will pay the amount of any resulting adverse final judgment (or settlement to which we consent). You must notify us promptly in writing of the claim and give us sole control over its defense or settlement. You agree to provide us with reasonable assistance, cooperation, and information in defending the claim at our expense. L 1.2 Our obligations under this Section G(1) will not apply to the extent the claim or adverse final rt+ v judgment is based on your use of the Tyler Software in contradiction of this Agreement, a including with non -licensed third parties, or your willful infringement. w 1.3 If we receive information concerning an infringement or misappropriation claim related to the Tyler Software, we may, at our expense and without obligation to do so, either: (a) procure for you the right to continue its use; (b) modify it to make it non -infringing; or (c) replace it with a functional equivalent, in which case you will stop running the allegedly infringing Tyler Software immediately. Alternatively, we may decide to litigate the claim to judgment, in which case you may continue to use the Tyler Software consistent with the terms of this Agreement. 1.4 If an infringement or misappropriation claim is fully litigated and your use of the Tyler Software is enjoined by a court of competent jurisdiction, in addition to paying any adverse final judgment (or settlement to which we consent), we will, at our option, either: (a) procure the right to continue its use; (b) modify it to make it non -infringing; or (c) replace it with a functional equivalent. This section provides your exclusive remedy for third party copyright, patent, or trademark infringement and trade secret misappropriation claims. 2. General Indemnification. 2.1 We will indemnify and hold harmless you and your agents, officials, and employees from and against any and all third -party claims, losses, liabilities, damages, costs, and expenses (including reasonable attorney's fees and costs) for (a) personal injury or property damage to the extent caused by our negligence or willful misconduct; or (b) our violation of PCI-DSS requirements or a law applicable to our performance under this Agreement. You must notify us promptly in writing of the claim and give us sole control over its defense or settlement. You agree to provide us with reasonable assistance, cooperation, and information in defending the claim at our expense. 2.2 To the extent permitted by applicable law, you will indemnify and hold harmless us and our agents, officials, and employees from and against any and all third -party claims, losses, liabilities, damages, costs, and expenses (including reasonable attorney's fees and costs) for personal injury or property damage to the extent caused by your negligence or willful ••., tyler Packet Pg. 13 2.2.a misconduct; or (b) your violation of a law applicable to your performance under this Agreement. We will notify you promptly in writing of the claim and will give you sole control over its defense or settlement. We agree to provide you with reasonable assistance, cooperation, and information in defending the claim at your expense. 3. DISCLAIMER. EXCEPT FOR THE EXPRESS WARRANTIES PROVIDED IN THIS AGREEMENT AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, WE HEREBY DISCLAIM ALL OTHER WARRANTIES AND CONDITIONS, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES, DUTIES, OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. CLIENT UNDERSTANDS AND AGREES THAT TYLER DISCLAIMS ANY LIABILITY FOR ERRORS THAT RELATE TO USER ERROR. 4. LIMITATION OF LIABILITY. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, OUR LIABILITY FOR DAMAGES ARISING OUT OF THIS AGREEMENT, WHETHER BASED ON A THEORY OF CONTRACT OR TORT, INCLUDING NEGLIGENCE AND STRICT LIABILITY, SHALL BE LIMITED TO YOUR ACTUAL DIRECT DAMAGES, NOT TO EXCEED (A) DURING THE INITIAL TERM, AS SET FORTH IN SECTION F(1), TOTAL FEES PAID AS OF THE TIME OF THE CLAIM; OR (B) DURING ANY RENEWAL TERM, THE THEN -CURRENT ANNUAL SAAS FEES PAYABLE IN THAT RENEWAL TERM. THE PARTIES ACKNOWLEDGE AND AGREE THAT THE PRICES SET FORTH IN THIS AGREEMENT ARE SET IN RELIANCE UPON THIS LIMITATION OF LIABILITY AND TO THE MAXIMUM EXTENT ALLOWED UNDER APPLICABLE LAW, THE EXCLUSION OF CERTAIN DAMAGES, AND EACH SHALL APPLY REGARDLESS OF THE FAILURE OF AN ESSENTIAL PURPOSE OF ANY REMEDY. THE FOREGOING LIMITATION OF LIABILITY SHALL NOT APPLY TO CLAIMS THAT ARE SUBJECT TO SECTIONS G(1) AND G(2). 5. EXCLUSION OF CERTAIN DAMAGES. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL WE BE LIABLE FOR ANY SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES WHATSOEVER, EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 6. Insurance. During the course of performing services under this Agreement, we agree to maintain the following levels of insurance: (a) Commercial General Liability of at least $1,000,000; (b) Automobile Liability of at least $1,000,000; (c) Professional Liability of at least $1,000,000; (d) Workers Compensation complying with applicable statutory requirements; and (e) Excess/Umbrella Liability of at least $5,000,000. We will add you as an additional insured to our Commercial General Liability and Automobile Liability policies, which will automatically add you as an additional insured to our Excess/Umbrella Liability policy as well. We will provide you with copies of certificates of insurance upon your written request. SECTION H — GENERAL TERMS AND CONDITIONS 1. Additional Products and Services. You may purchase additional products and services at the rates set forth in the Investment Summary for twelve (12) months from the Effective Date by executing a mutually agreed addendum. If no rate is provided in the Investment Summary, or those twelve (12) months have expired, you may purchase additional products and services at our then -current list price, also by executing a mutually agreed addendum. The terms of this Agreement will control any such additional purchase(s), unless otherwise specifically provided in the addendum. 2. Optional Items. Pricing for any listed optional products and services in the Investment Summary will 10 Packet Pg. 14 2.2.a be valid for twelve (12) months from the Effective Date. 3. Dispute Resolution. You agree to provide us with written notice within thirty (30) days of becoming aware of a dispute. You agree to cooperate with us in trying to reasonably resolve all disputes, including, if requested by either party, appointing a senior representative to meet and engage in good faith negotiations with our appointed senior representative. Senior representatives will convene within thirty (30) days of the written dispute notice, unless otherwise agreed. All meetings and discussions between senior representatives will be deemed confidential settlement discussions not subject to disclosure under Federal Rule of Evidence 408 or any similar applicable state rule. If we fail to resolve the dispute, then the parties shall participate in non -binding mediation in an effort to resolve the dispute. If the dispute remains unresolved after mediation, then either of us may assert our respective rights and remedies in a court of competent jurisdiction. Nothing in this section shall prevent you or us from seeking necessary injunctive relief during the dispute resolution procedures. L 4. Taxes. The fees in the Investment Summary do not include any taxes, including, without limitation, rt+ v sales, use, or excise tax. If you are a tax-exempt entity, you agree to provide us with a tax-exempt certificate. Otherwise, we will pay all applicable taxes to the proper authorities and you will w reimburse us for such taxes. If you have a valid direct -pay permit, you agree to provide us with a N copy. For clarity, we are responsible for paying our income taxes, both federal and state, as cc N applicable, arising from our performance of this Agreement. c 5. Nondiscrimination. We will not discriminate against any person employed or applying for employment concerning the performance of our responsibilities under this Agreement. This discrimination prohibition will apply to all matters of initial employment, tenure, and terms of employment, or otherwise with respect to any matter directly or indirectly relating to employment concerning race, color, religion, national origin, age, sex, sexual orientation, ancestry, disability that is unrelated to the individual's ability to perform the duties of a particular job or position, height, weight, marital status, or political affiliation. We will post, where appropriate, all notices related to nondiscrimination as may be required by applicable law. 6. E-Verify. We have complied, and will comply, with the E-Verify procedures administered by the U.S Citizenship and Immigration Services Verification Division for all of our employees assigned to your project. 7. Subcontractors. We will not subcontract any services under this Agreement without your prior written consent, not to be unreasonably withheld. 8. Binding Effect; No Assignment. This Agreement shall be binding on, and shall be for the benefit of, either your or our successor(s) or permitted assign(s). Neither party may assign this Agreement without the prior written consent of the other party; provided, however, your consent is not required for an assignment by us as a result of a corporate reorganization, merger, acquisition, or purchase of substantially all of our assets. 9. Force Majeure. Except for your payment obligations, neither party will be liable for delays in performing its obligations under this Agreement to the extent that the delay is caused by Force Majeure; provided, however, that within ten (10) business days of the Force Majeure event, the party whose performance is delayed provides the other party with written notice explaining the ••., tyler 11 Packet Pg. 15 2.2.a cause and extent thereof, as well as a request for a reasonable time extension equal to the estimated duration of the Force Majeure event. 10. No Intended Third Party Beneficiaries. This Agreement is entered into solely for the benefit of you and us. No third party will be deemed a beneficiary of this Agreement, and no third party will have the right to make any claim or assert any right under this Agreement. This provision does not affect the rights of third parties under any Third Party Terms. 11. Entire Agreement; Amendment. This Agreement represents the entire agreement between you and us with respect to the subject matter hereof, and supersedes any prior agreements, understandings, and representations, whether written, oral, expressed, implied, or statutory. Purchase orders submitted by you, if any, are for your internal administrative purposes only, and the terms and conditions contained in those purchase orders will have no force or effect. This Agreement may only be modified by a written amendment signed by an authorized representative of each party. L 12. Severability. If any term or provision of this Agreement is held invalid or unenforceable, the rt+ v remainder of this Agreement will be considered valid and enforceable to the fullest extent permitted by law. w 13. No Waiver. In the event that the terms and conditions of this Agreement are not strictly enforced by either party, such non -enforcement will not act as or be deemed to act as a waiver or modification of this Agreement, nor will such non -enforcement prevent such party from enforcing each and every term of this Agreement thereafter. 14. Independent Contractor. We are an independent contractor for all purposes under this Agreement. 15. Notices. All notices or communications required or permitted as a part of this Agreement, such as notice of an alleged material breach for a termination for cause or a dispute that must be submitted to dispute resolution, must be in writing and will be deemed delivered upon the earlier of the following: (a) actual receipt by the receiving party; (b) upon receipt by sender of a certified mail, return receipt signed by an employee or agent of the receiving party; (c) upon receipt by sender of proof of email delivery; or (d) if not actually received, five (5) days after deposit with the United States Postal Service authorized mail center with proper postage (certified mail, return receipt requested) affixed and addressed to the other party at the address set forth on the signature page hereto or such other address as the party may have designated by proper notice. The consequences for the failure to receive a notice due to improper notification by the intended receiving party of a change in address will be borne by the intended receiving party. 16. Client Lists. You agree that we may identify you by name in client lists, marketing presentations, and promotional materials. 17. Confidentiality. Both parties recognize that their respective employees and agents, in the course of performance of this Agreement, may be exposed to confidential information and that disclosure of such information could violate rights to private individuals and entities, including the parties. Confidential information is nonpublic information that a reasonable person would believe to be confidential and includes, without limitation, personal identifying information (e.g., social security numbers) and trade secrets, each as defined by applicable state law. Each party agrees that it will not disclose any confidential information of the other party and further agrees to take all reasonable ••., tyler 12 • Packet Pg. 16 2.2.a and appropriate action to prevent such disclosure by its employees or agents. The confidentiality covenants contained herein will survive the termination or cancellation of this Agreement. This obligation of confidentiality will not apply to information that: (a) is in the public domain, either at the time of disclosure or afterwards, except by breach of this Agreement by a party or its employees or agents; (b) a party can establish by reasonable proof was in that party's possession at the time of initial disclosure; (c) a party receives from a third party who has a right to disclose it to the receiving party; or (d) is the subject of a legitimate disclosure request under the open records laws or similar applicable public disclosure laws governing this Agreement; provided, however, that in the event you receive an open records or other similar applicable request, you will give us prompt notice and otherwise perform the functions required by applicable law. 18. Quarantining of Client Data. Some services provided by Tyler require us to be in possession of your Data. In the event we detect malware or other conditions associated with your Data that are reasonably suspected of putting Tyler resources or other Tyler clients' data at risk, we reserve the v absolute right to move your Data from its location within a multi -tenancy Tyler hosted environment to an isolated "quarantined" environment without advance notice. Your Data will remain in such w quarantine for a period of at least six (6) months during which time we will review the Data, and all N traffic associated with the Data, for signs of malware or other similar issues. If no issues are cc N detected through such reviews during the six (6) month period of quarantine, we will coordinate c with you the restoration of your Data to a non -quarantined environment. In the event your Data c must remain in quarantine beyond this six (6) month period through no fault of Tyler's, we reserve CO the right to require payment of additional fees for the extended duration of quarantine. We will P provide an estimate of what those costs will be upon your request. M 19. Business License. In the event a local business license is required for us to perform services hereunder, you will promptly notify us and provide us with the necessary paperwork and/or contact information so that we may timely obtain such license. 20. Governing Law. This Agreement will be governed by and construed in accordance with the laws of your state of domicile, without regard to its rules on conflicts of law. 21. Multiple Originals and Authorized Signatures. This Agreement may be executed in multiple originals, any of which will be independently treated as an original document. Any electronic, faxed, scanned, photocopied, or similarly reproduced signature on this Agreement or any amendment hereto will be deemed an original signature and will be fully enforceable as if an original signature. Each party represents to the other that the signatory set forth below is duly authorized to bind that party to this Agreement. 22. Cooperative Procurement. To the maximum extent permitted by applicable law, we agree that this Agreement may be used as a cooperative procurement vehicle by eligible jurisdictions. We reserve the right to negotiate and customize the terms and conditions set forth herein, including but not limited to pricing, to the scope and circumstances of that cooperative procurement. 23. Data & Insights Solution Terms. Your use of certain Tyler solutions includes Tyler's Data & Insights data platform. Your rights, and the rights of any of your end users, to use Tyler's Data & Insights data platform is subject to the Data & Insights SaaS Services Terms of Service, available at ••., tyler 13 Packet Pg. 17 2.2.a https://www.tylertech.com/terms/data-insights-saas-services-terms-of-service. By signing a Tyler Agreement or Order Form, or accessing, installing, or using any of the Tyler solutions listed at the linked terms, you certify that you have reviewed, understand, and agree to said terms. 24. Contract Documents. This Agreement includes the following exhibits: Exhibit A Investment Summary Schedule 1: Migration Modules Exhibit B Invoicing and Payment Policy Schedule 1: Business Travel Policy Exhibit C Service Level Agreement Schedule 1: Support Call Process Exhibit D Third Party Terms Exhibit E Statement of Work ca L IN WITNESS WHEREOF, a duly authorized representative of each party has executed this Agreement as y.+ v of the dates) set forth below. w Tyler Technologies, Inc. By: Name: Title: Date: Address for Notices: Tyler Technologies, Inc. One Tyler Drive Yarmouth, ME 04096 Attention: Chief Legal Officer City of Edmonds, Washington By: Name: Title: Date: Address for Notices: City of Edmonds 121 5ch Avenue North Edmonds, Washington 98020 Attention: ••., tyler 14 Packet Pg. 18 2.2.a Exhibit A • ••::•. tyler • technologies Exhibit A Investment Summary The following Investment Summary details the software and services to be delivered by us to you under the Agreement. This Investment Summary is effective as of the Effective Date, despite any expiration date in the Investment Summary that may have lapsed as of the Effective Date. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement. In the event of conflict between the Agreement and terms in the Comments section of this Investment Summary, the ca language in the Agreement will prevail. 0 tU a w REMAINDER OF PAGE INTENTIONALLY LEFT BLANK le ••., tyler Packet Pg. 1 2.2.a Quoted By: Chris Deroche • •••ty er Quote Expiration: 11/27/24 •���•� Quote Name: City of Edmonds-ERP-EERP • technologies Quote Description: Enterprise ERP 6.11.24 Saas Term 3.00 Sales Quotation For: Shipping Address: City of Edmonds 121 5th Ave N Edmonds WA 98020-3163 Financial Management Accounting Accounts Payable Budgeting Capital Assets Cash Management Contract Management Inventory Inventory Mobile Project & Grant Accounting Purchasing Human Resources Management Human Resources & Talent Management Payroll with Employee Access Recruiting Time & Attendance w Mobile Access - Up to 350 Employees 2023-408295-S4G8J6 1 168 $ 34,990.00 1 40 $ 9,509.00 1 56 $ 9,509.00 1 48 $ 7,880.00 1 40 $ 6,331.00 1 32 $ 3,815.00 1 56 $ 7,247.00 1 16 $ 4,672.00 1 48 $ 6,520.00 1 112 $ 14,289.00 1 152 $ 5,789.00 1 168 $ 8,386.00 1 16 $ 1,314.00 1 160 $ 13,884.00 Page 1 Packet Pg. 20 2.2.a Revenue Management Accounts Receivable 1 88 $ 7,015.00 Cashiering 1 48 $ 13,140.00 Central Property File 1 8 $ 1,186.00 General Billing 1 40 $ 4,497.00 Resident Access 1 56 $ 6,300.00 Utility Billing CIS 1 192 $ 8,883.00 Utility Billing Meter Interface 1 24 $ 2,849.00 Utility Billing Special Assessments 1 64 $ 3,764.00 Content Management Content Manager Core includes Onboarding 1 32 $ 12,569.00 Data Insights Enterprise Analytics and Reporting w Executive Insights 1 88 $ 22,189.00 Open Finance 1 0 $ 12,000.00 Additional ACFR Statement Builder 1 32 $ 7,850.00 Enterprise Forms Processing Software (including Common Form Set) 1 0 $ 7,215.00 Sub -Total: $ 243,592.00 Less Discount: $ 27,751.00 TOTAL 1784 $ 215,841.00 Professional Services Description Ituantity V,nit Price Ext Discount Extended Price IT-laintenance Applicant Tracking Import Hours 8 $ 175.00 $ 704.00 $ 696.00 $ 0.00 Capital Assets Import Hours 16 $ 175.00 $ 1,408.00 $ 1,392.00 $ 0.00 Executive Insights Implementation 1 $ 8,400.00 $ 0.00 $ 8,400.00 $ 0.00 Install Fee - Open Finance 1 $ 5,600.00 $ 0.00 $ 5,600.00 $ 0.00 Payroll Accruals Import Hours 8 $ 175.00 $ 704.00 $ 696.00 $ 0.00 Payroll Deductions Import Hours 12 $ 175.00 $ 1,056.00 $ 1,044.00 $ 0.00 Position Control Import Hours 8 $ 175.00 $ 704.00 $ 696.00 $ 0.00 2023-408295-S4G8J6 Page 2 w ca 0 tU a w N W N W 0 _ 0 L ca ca U) Q vi _ 0 E w a� t Q Packet Pg. 21 2.2.a Conversions —See Detailed Breakdown Below $ 36,350.00 $ 0.00 Project Management 268 $ 200.00 $ 0.00 $ 53,600.00 $ 0.00 Onsite Implementation 472 $ 225.00 $ 0.00 $ 106,200.00 $ 0.00 Remote Implementation 1312 $ 200.00 $ 0.00 $ 262,400.00 $ 0.00 TOTAL $ 477,074.00 $ 0.00 Payments Basis Use Case List Price Service % Min Points Rate Cap POS Online IV Payments - Client Card Cost - Interchange Plus Enterprise ERP Enterprise ERP Payments General Billing 0.50% $ 0.50 X X Enterprise ERP Payments Utility Billing 0.50% $ 0.50 X X Payments - Other ees Enterprise ERP Client eCheck Cost $ 1.95 eCheck Rejects $ 5.00 Credit Card Chargebacks $ 15.00 Client Card Cost - Interchange Plus Per card transaction with Visa, MasterCard, Discover, and American Express for all transactions on top of industry -driven rates for bank fees, card brand fees, interchange fees, dues, assessments, and other processing fees. Enterprise ERP Payments IVR Cost - Additional $0.50 per transaction on top of Card and eCheck fee. Client eCheck Cost Per electronic check transaction. eCheck Rejects When an eCheck transaction comes back as declined (e.g bounced check) Credit Card Chargebacks If a card payer disputes a transaction at the card issuing bank (e.g. stolen card) X Barcode Printer Kit 1 $ 1,445.00 $ 0.00 $ 1,445.00 $ 145.00 $ 0.00 $ 145.00 2023-408295-S4G8J6 Page 3 w L yr 0 tU a W w le N W N W O _ 0 L ca ca U) a vi c 0 E w a� E t w r a Packet Pg. 22 2.2.a Barcode Scanner - NX6 Rugged Mobile Scanning Device 1 $ 1,695.00 $ 0.00 $ 1,695.00 $ 170.00 $ 0.00 Payments Lane 7000 Terminal Purchase 1 $ 529.00 $ 0.00 $ 529.00 $ 0.00 $ 0.00 Payments PCI Service Fee (Per Device) 1 $ 0.00 $ 0.00 $ 0.00 $ 180.00 $ 0.00 TOTAL $ 3,669.00 Summary One Time Fees Recurring Fees Total Tyler License Fees $ 0.00 $ 0.00 Total SaaS $ 0.00 $ 215,841.00 Total Tyler Services $ 477,074.00 $ 0.00 Total Third -Party Hardware, Software, Services $ 3,669.00 $ 495.00 Summary Total $ 480,743.00 $ 216,336.00 Contract Total $ 1,128,761.00 Estimated Travel Expenses excl in Contract Total $ 27,400.00 Unless otherwise indicated in the contract or amendment thereto, pricing for optional items will be held For six (6) months from the Quote date or the Effective Date of the Contract, whichever is later. Customer Approval: Print Name: All Primary values quoted in US Dollars Detailed Breakdown of Conversions (Included in Summary Total) Financials Accounting Accounts Payable Project Accounting Purchase Orders 2023-408295-S4G8J6 Date: P.O.#: 1 $ 5,000.00 $ 2,500.00 1 $ 7,600.00 $ 3,800.00 1 $ 5,000.00 $ 2,500.00 1 $ 5,400.00 $ 2,700.00 $ 170.00 $ 0.00 $ 180.00 $ 495.00 $ 2,500.00 $ 3,800.00 $ 2,500.00 $ 2,700.00 Page 4 w L yr 0 tU a o! w N W N W 0 _ 0 L 2 G ca ca co a vi c 0 E w a� E t w r a Packet Pg. 23 2.2.a Human Resources Management Human Resources Management Revenue Management General Billing Utility Billing 1 $ 14,300.00 $ 7,150.00 $ 7,150.00 1 $ 8, 200.00 $ 4,100.00 $ 4,100.00 1 $ 27,200.00 $ 13,600.00 $ 13,600.00 TOTAL $ 36,350.00 Financial Management eProcurement (Vendor Access and Punch -Out) 1 24 $ 5,700.00 TOTAL: 24 $ 5,700.00 Onsite Implementation 8 $ 225.00 $ 0.00 $ 1,800.00 $ 0.00 Remote Implementation 16 $ 200.00 $ 0.00 $ 3,200.00 $ 0.00 TOTAL $ 5,000.00 $ 0.00 Financial Management Accounting 2023-408295-S4G8J6 $ 34,990.00 $ 6,648.00 $ 28,342.00 Page 5 Packet Pg. 24 2.2.a Accounts Payable $ 9,509.00 $ 1,807.00 $ 7,702.00 Budgeting $ 9,509.00 $ 1,807.00 $ 7,702.00 Capital Assets $ 7,880.00 $ 1,497.00 $ 6,383.00 Cash Management $ 6,331.00 $ 0.00 $ 6,331.00 Contract Management $ 3,815.00 $ 0.00 $ 3,815.00 Inventory $ 7,247.00 $ 0.00 $ 7,247.00 Inventory Mobile $ 4,672.00 $ 0.00 $ 4,672.00 Project & Grant Accounting $ 6,520.00 $ 1,239.00 $ 5,281.00 Purchasing $ 14,289.00 $ 2,715.00 $ 11,574.00 Human Resources Management Human Resources & Talent Management $ 5,789.00 $ 1,100.00 $ 4,689.00 Payroll with Employee Access $ 8,386.00 $ 1,593.00 $ 6,793.00 Recruiting $ 1,314.00 $ 0.00 $ 1,314.00 Time & Attendance w Mobile Access - Up to 350 Employees $ 13,884.00 $ 0.00 $ 13,884.00 Revenue Management Accounts Receivable $ 7,015.00 $ 1,333.00 $ 5,682.00 Cashiering $ 13,140.00 $ 2,497.00 $ 10,643.00 Central Property File $ 1,186.00 $ 225.00 $ 961.00 General Billing $ 4,497.00 $ 854.00 $ 3,643.00 Resident Access $ 6,300.00 $ 0.00 $ 6,300.00 Utility Billing CIS $ 8,883.00 $ 1,688.00 $ 7,195.00 Utility Billing Meter Interface $ 2,849.00 $ 541.00 $ 2,308.00 Utility Billing Special Assessments $ 3,764.00 $ 715.00 $ 3,049.00 Content Management Content Manager Core includes Onboarding $ 12,569.00 $ 0.00 $ 12,569.00 Data Insights Enterprise Analytics and Reporting w Executive Insights $ 22,189.00 $ 0.00 $ 22,189.00 Open Finance $ 12,000.00 $ 0.00 $ 12,000.00 Additional ACFR Statement Builder $ 7,850.00 $ 1,492.00 $ 6,358.00 Enterprise Forms Processing Software (including Common Form Set) $ 7,215.00 $ 0.00 $ 7,215.00 TOTAL $ 243,592.00 $ 27,751.00 $ 215,841.00 2023-408295-S4G8J6 Page 6 ca 0 tU a w N W N W 0 0 w ca ca U) vi _ 0 E w a� E t w r a Packet Pg. 25 2.2.a Comments Tyler's quote contains estimates of the amount of services needed, based on our preliminary understanding of the scope, level of engagement, and timeline as defined in the Statement of Work (SOW) for your project. The actual amount of services required may vary, based on these factors. Tyler's pricing is based on the scope of proposed products and services contracted from Tyler. Should portions of the scope of products or services be altered by the Client, Tyler reserves the right to adjust prices for the remaining scope accordingly. Unless otherwise noted, prices submitted in the quote do not include travel expenses incurred in accordance with Tyler's then -current Business Travel w Policy. L Tyler's prices do not include applicable local, city or federal sales, use excise, personal property or other similar taxes or duties, which you are v responsible for determining and remitting. Installations are completed remotely but can be done onsite upon request at an additional cost. a w In the event Client cancels services less than four (4) weeks in advance, Client is liable to Tyler for (i) all non-refundable expenses incurred by Tyler on Client's behalf; and (ii) daily fees associated with the cancelled services if Tyler is unable to re -assign its personnel. The Implementation Hours included in this quote assume a work split effort of 70% Client and 30% Tyler. Implementation Hours are scheduled and delivered in four (4) or eight (8) hour increments. Tyler provides onsite training for a maximum of 12 people per class. In the event that more than 12 users wish to participate in a training class or more than one occurrence of a class is needed, Tyler will either provide additional days at then -current rates for training or Tyler will utilize a Train -the - Trainer approach whereby the client designated attendees of the initial training can thereafter train the remaining users. As a new Tyler client, you are entitled to a 14-day or a 30-day trial of the Managed Detection and Response cybersecurity service. Please reference https://www.tylertech.com/services/tyler-detect for more information on the service and contact CybersecuritySales@tylertech.COML ' to initiate the trial. Tyler currently supports the following identity providers (IdP's) for use with Tyler back -office solutions: Microsoft Active Directory through Azure AD, ADFS or Okta AD agent, Google Cloud Identity, Okta, and Identity Automation Rapid Identity. Any requirement by you to use an IdP not supported by Tyler will require additional costs, available upon request. Content Manager Core includes up to 1TB of storage. Should additional storage be needed it may be purchased as needed at an annual fee of $5,000 per TB. The SaaS fees for product that are not named users are based on 50 concurrent users. Should the number of concurrent users be exceeded, Tyler reserves the right to re -negotiate the SaaS fees based upon any resulting changes in the pricing categories. 2023-408295-S4G8J6 Page 7 Packet Pg. 26 2.2.a Financial library includes: standard A/P check, standard EFT/ACH, standard Purchase order, standard Contract, 1099M, 10991NT, 10995, 1099NEC and 1099G. General Billing library includes: standard invoice, standard statement, standard general billing receipt and standard miscellaneous receipt. Personnel Actions Forms Library includes: standard Personnel Action form - New and standard Personnel Action Form - Change. w Standard Project Management responsibilities include project plan creation, initial stakeholder presentation, bi-weekly status calls, updating of project plan task statuses, and go -live planning activities. 0 tU Utility billing library includes: standard Utility bill, standard UB receipt, standard UB delinquent notice, standard door hanger and standard final CL utility bill. w Your rights, and the rights of any of your end users, to use Tyler's Data & Insights SaaS Services, or certain Tyler solutions which include Tyler's Data & Insights data platform, are subject to the Terms of Services, available at https://www.tylertech.com/terms/data-insights-saas-services- terms-of-service. By signing this sales quotation, or accessing, installing, or using any of the Tyler solutions listed at the linked terms, you certify that you have reviewed, understand, and agree to said terms. Payroll library includes: standard PR check, standard direct deposit, standard vendor from payroll check, standard vendor from payroll direct deposit, W2, W2c, ACA 1095B, ACA 1095C and 1099 R. Accounting conversion includes: Actuals (total balances only) up to 5 years, Budgets (total balances only) up to 5 years Accounts Payable conversion includes: Standard - Vendors, Remit Addresses, 1099 Amounts, Check History(Header, Detail) - up to 5 years, Invoices (Header, Detail) - up to 5 years General Billing conversion includes: Standard - CID, Recurring Invoices, Bills(Header, Detail), Payment History, Invoices - up to 5 years Human Resources Management conversion includes: Standard - Employee Master, Address, Accumulators (Earnings & Deduction totals by period) - up to 5 years, Check History - up to 5 years, Earning/Deduction History - up to 5 years, PM Action History - up to 5 years, Certifications, Education Project Accounting conversion includes: Standard, Actuals - up to 5 years, Budgets - up to 5 years Purchase Orders conversion includes: Standard - Open POs, Closed POs - up to 5 years 2023-408295-S4G8J6 Page 8 Packet Pg. 27 2.2.a Utility Billing conversion includes: Standard - UB Account, CID's, Services/Meter Inventory, Assessments, Consumption History - up to 5 years, Balance Forward AR, Service Orders, Backflow, Budget Billing, Flat Inventory/Containers In the event Client acquires from Tyler any edition of Content Manager software other than Enterprise Edition, the license for Content Manager is restricted to use with Tyler applications only. If Client wishes to use Content Manager software with non -Tyler applications, Client must purchase or upgrade to Content Manager Enterprise Edition. All hardware related to Assets Mobile and Inventory Mobile will be under a standard maintenance plan which starts when they are shipped. This w includes replacement of your current hardware if it cannot be fixed through the standard helpdesk process. L Fees for year one of hardware maintenance are invoiced upon delivery of the hardware, with subsequent years' fees billed annually, in advance. rt+ v a W Your use of Payments and any related items included on this order is subject to the terms found at: https://www.tylertech.com/terms/payment- w card -processing -agreement. By signing this order or the agreement in which it is included, you agree you have read, understand, and agree to le such terms. Please see attached Payments fee schedule. N cc PV 2023-408295-S4G8J6 Page 9 Packet Pg. 28 2.2.a . ••::•. tyler et • technologies Exhibit A Schedule 1 Migration Modules • Payroll/Position Control • Utility Billing • Accounts Receivable • Handhelds • Forms Support • Data Dictionaries • Project Accounting • Parcel Manager • Licensing • Administration • GL/AP • Special Assessment • Advanced Budgeting • Utility Billing Support Web • Tyler Cashiering • Human Resources • Annual Comprehensive Financial Report Upgrade • Purchasing Support • "Tyler Payments - Hosting Fee" • Cash Register Interface • Fixed Assets • Human Resources Web Exhibit A Schedule 1 L c 0 U a w v N N w 0 _ 0 0 L U) 0 U) y _ 0 E w as E Q 1 Packet Pg. 29 2.2.a Exhibit B • ••::•. tyler • technologies Exhibit B Invoicing and Payment Policy We will provide you with the software and services set forth in the Investment Summary of the Agreement. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement. Invoicing: We will invoice you for the applicable software and services in the Investment Summary as set forth below. Your rights to dispute any invoice are set forth in the Agreement. 1. SaaS Fees. SaaS Fees are invoiced on an annual basis, beginning on the commencement of the initial term as set forth in Section F(1) of this Agreement. Your annual SaaS fees for the initial term are set forth in the Investment Summary. Upon expiration of the initial term, your annual SaaS fees will be at our then -current rates. Beginning on the commencement of the initial term, Client shall no longer be required to pay annual support fees for the Migration Modules. 2. Other Tvler Software and Services. 2.1 VPN Device: The fee for the VPN device will be invoiced upon installation of the VPN. 2.2 Implementation and Other Professional Services (including training): Implementation and other professional services (including training) are billed and invoiced as delivered, at the rates set forth in the Investment Summary. 2.3 Consulting Services: If you have purchased any Business Process Consulting services, if they have been quoted as fixed -fee services, they will be invoiced 50% upon your acceptance of the best practice recommendations, by module, and 50% upon your acceptance of custom desktop procedures, by module. If you have purchased any Business Process Consulting services and they are quoted as an estimate, then we will bill you the actual services delivered on a time and materials basis. 2.4 Conversions: Fixed -fee conversions are invoiced 50% upon initial delivery of the converted Data, by conversion option, and 50% upon Client acceptance to load the converted Data into Live/Production environment, by conversion option. Where conversions are quoted as estimated, we will bill you the actual services delivered on a time and materials basis. 2.5 Requested Modifications to the Tyler Software: Requested modifications to the Tyler Software are invoiced 50% upon delivery of specifications and 50% upon delivery of the applicable modification. You must report any failure of the modification to conform to the specifications within thirty (30) days of delivery; otherwise, the modification will be deemed to be in compliance with the specifications after the 30-day window has passed. You may still report Defects to us as set forth in this Agreement. ••., tyler Packet Pg. 30 2.2.a Exhibit B 2.6 Other Fixed Price Services: Other fixed price services are invoiced as delivered, at the rates set forth in the Investment Summary. For the avoidance of doubt, where "Project Planning Services" are provided, payment will be due upon delivery of the Implementation Planning document. Dedicated Project Management services, if any, will be billed monthly in arrears, beginning on the first day of the month immediately following initiation of project planning. 2.7 Web Services: Annual fees for web services are payable in advance, commencing upon the availability of the service. Your annual fees for the initial term are set forth in the Investment Summary. Upon expiration of the initial term, your annual fees will be at our then -current rates. 2.8 Annual Services: Unless otherwise indicated in this Exhibit B, fees for annual services are due annually, in advance, commencing on the availability of the service. Your annual fees for the initial term are set forth in the Investment Summary. Upon expiration of the initial term, your annual fees will be at our then -current rates. v a 3. Third Party Products and Hardware. w 3.1 Third Party Software License Fees: License fees for Third Party Software, if any, are invoiced when we make it available to you for downloading. 3.2 Third Party Software Maintenance: The first year maintenance fee for the Third Party Software is invoiced when we make it available to you for downloading. Subsequent annual maintenance fees for Third Party Software are invoiced annually, in advance, at then - current rates, upon each anniversary thereof. 3.3 Hardware: Third Party Hardware costs, if any, are invoiced upon delivery. 3.4 Hardware Maintenance: The first year maintenance fee for Hardware is invoiced upon delivery of the hardware. Subsequent annual maintenance fees for hardware are invoiced annually, in advance, at then -current rates, upon each anniversary thereof. 3.5 Third Party Services: Fees for Third Party Services, if any, are invoiced as delivered, along with applicable expenses, at the rates set forth in the Investment Summary. For the avoidance of doubt, Finite Matters will invoice Client directly for any services fees for Pattern Stream. 3.6 Third Party SaaS: Third Party SaaS Services fees, if any, are invoiced annually, in advance, commencing with availability of the respective Third Party SaaS Services. Pricing for the first year of Third Party SaaS Services is indicated in the Investment Summary. Pricing for subsequent years will be at the respective third party's then -current rates. 4. Transaction Fees. Unless paid directly by an end user at the time of transaction, per transaction (call, message, etc.) fees are invoiced on a quarterly basis. Fees are indicated in Exhibit A and may be increased by Tyler upon notice of no less than thirty (30) days. 5. Expenses. The service rates in the Investment Summary do not include travel expenses. ••., tyler Packet Pg. 31 2.2.a Exhibit B Expenses for Tyler delivered services will be billed as incurred and only in accordance with our then -current Business Travel Policy, plus a 10% travel agency processing fee. Our current Business Travel Policy is attached to this Exhibit B as Schedule 1. Copies of receipts will be provided upon request; we reserve the right to charge you an administrative fee depending on the extent of your requests. Receipts for miscellaneous items less than twenty-five dollars and mileage logs are not available. 6. Credit for Preaaid Maintenance and Suaport Fees for Mieration Modules. Client will receive a credit for the maintenance and support fees prepaid for the Migration Modules for the time period commencing on the first day of the initial term, as set forth in Section F (1) of this Agreement. Migration Modules are listed at Exhibit A, Schedule 1. Payment. Payment for undisputed invoices is due within forty-five (45) days of the invoice date. We prefer to receive payments electronically. Our electronic payment information is available by contacting AR@tvlertech.com. 0 tU a w ••., tyler Packet Pg. 32 2.2.a • ••::•. ty ler . • technologies Exhibit B Schedule 1 Business Travel Policy 1. Air Travel A. Reservations & Tickets Exhibit B Schedule 1 The Travel Management Company (TMC) used by Tyler will provide an employee with a direct flight within two hours before or after the requested departure time, assuming that flight does not add more than three hours to the employee's total trip duration and the fare is within $100 (each way) of the lowest logical fare. If a net savings of $200 or more (each way) is possible through a connecting flight that is within two hours before or after the requested departure time and that does not add more than three hours to the employee's total trip duration, the connecting flight should be accepted. Employees are encouraged to make advanced reservations to take full advantage of discount opportunities. Employees should use all reasonable efforts to make travel arrangements at least two (2) weeks in advance of commitments. A seven (7) day advance booking requirement is mandatory. When booking less than seven (7) days in advance, management approval will be required. Except in the case of international travel where a segment of continuous air travel is six (6) or more consecutive hours in length, only economy or coach class seating is reimbursable. Employees shall not be reimbursed for "Basic Economy Fares" because these fares are non-refundable and have many restrictions that outweigh the cost -savings. B. Baggage Fees Reimbursement of personal baggage charges are based on trip duration as follows: • Up to five (5) days = one (1) checked bag • Six (6) or more days = two (2) checked bags Baggage fees for sports equipment are not reimbursable. ••., tyler Packet Pg. 33 2.2.a Exhibit B Schedule 1 2. Ground Transportation A. Private Automobile Mileage Allowance — Business use of an employee's private automobile will be reimbursed at the current IRS allowable rate, plus out of pocket costs for tolls and parking. Mileage will be calculated by using the employee's office as the starting and ending point, in compliance with IRS regulations. Employees who have been designated a home office should calculate miles from their home. B. Rental Car Employees are authorized to rent cars only in conjunction with air travel when cost, convenience, and the specific situation reasonably require their use. When renting a car for Tyler business, employees should select a "mid -size" or "intermediate" car. "Full" size cars may be rented when L three or more employees are traveling together. Tyler carries leased vehicle coverage for business = car rentals; except for employees traveling to Alaska and internationally (excluding Canada), v additional insurance on the rental agreement should be declined. a w C. Public Transportation le Taxi or airport limousine services may be considered when traveling in and around cities or to and from airports when less expensive means of transportation are unavailable or impractical. The actual fare plus a reasonable tip (15-18%) are reimbursable. In the case of a free hotel shuttle to the airport, tips are included in the per diem rates and will not be reimbursed separately. D. Parking & Tolls When parking at the airport, employees must use longer term parking areas that are measured in days as opposed to hours. Park and fly options located near some airports may also be used. For extended trips that would result in excessive parking charges, public transportation to/from the airport should be considered. Tolls will be reimbursed when receipts are presented. 3. Lodging Tyler's TMC will select hotel chains that are well established, reasonable in price, and conveniently located in relation to the traveler's work assignment. Typical hotel chains include Courtyard, Fairfield Inn, Hampton Inn, and Holiday Inn Express. If the employee has a discount rate with a local hotel, the hotel reservation should note that discount and the employee should confirm the lower rate with the hotel upon arrival. Employee memberships in travel clubs such as AAA should be noted in their travel profiles so that the employee can take advantage of any lower club rates. "No shows" or cancellation fees are not reimbursable if the employee does not comply with the hotel's cancellation policy. Tips for maids and other hotel staff are included in the per diem rate and are not reimbursed separately. ••., tyler Packet Pg. 34 2.2.a Exhibit B Schedule 1 Employees are not authorized to reserve non-traditional short-term lodging, such as Airbnb, VRBO, and HomeAway. Employees who elect to make such reservations shall not be reimbursed. 4. Meals and Incidental Expenses Employee meals and incidental expenses while on travel status within the continental U.S. are in accordance with the federal per diem rates published by the General Services Administration. Incidental expenses include tips to maids, hotel staff, and shuttle drivers and other minor travel expenses. Per diem rates are available at www.gsa.gov/perdiem. Per diem for Alaska, Hawaii, U.S. protectorates and international destinations are provided separately by the Department of State and will be determined as required. A. Overnight Travel L 0 For each full day of travel, all three meals are reimbursable. Per diems on the first and last day of a v CL trip are governed as set forth below. W w Departure Day N Depart before 12:00 noon Depart after 12:00 noon Return Day Return before 12:00 noon Return between 12:00 noon & 7:00 p.m. Return after 7:00 p.m.* Lunch and dinner Dinner Breakfast Breakfast and lunch Breakfast, lunch and dinner *7:00 p.m. is defined as direct travel time and does not include time taken to stop for dinner. The reimbursement rates for individual meals are calculated as a percentage of the full day per diem as follows: Breakfast 15% Lunch 25% Dinner 60% B. Same Day Travel Employees traveling at least 100 miles to a site and returning in the same day are eligible to claim lunch on an expense report. Employees on same day travel status are eligible to claim dinner in the event they return home after 7:00 p.m.* *7:00 p.m. is defined as direct travel time and does not include time taken to stop for dinner. ••., tyler 3 Packet Pg. 35 2.2.a Exhibit B Schedule 1 5. Internet Access— Hotels and Airports Employees who travel may need to access their e-mail at night. Many hotels provide free high speed internet access and Tyler employees are encouraged to use such hotels whenever possible. If an employee's hotel charges for internet access it is reimbursable up to $10.00 per day. Charges for internet access at airports are not reimbursable. 6. International Travel All international flights with the exception of flights between the U.S. and Canada should be reserved through TMC using the "lowest practical coach fare" with the exception of flights that are six (6) or more consecutive hours in length. In such event, the next available seating class above coach shall be reimbursed. L 0 tU When required to travel internationally for business, employees shall be reimbursed for photo fees, application fees, and execution fees when obtaining a new passport book, but fees related to w passport renewals are not reimbursable. Visa application and legal fees, entry taxes and departure le taxes are reimbursable. The cost of vaccinations that are either required for travel to specific countries or suggested by the U.S. Department of Health & Human Services for travel to specific countries, is reimbursable. Section 4, Meals & Incidental Expenses, and Section 2.b., Rental Car, shall apply to this section. ••., tyler Packet Pg. 36 2.2.a Exhibit C • •••'•• tyler • technologies Exhibit C SERVICE LEVEL AGREEMENT I. Agreement Overview This SLA operates in conjunction with, and does not supersede or replace any part of, the Agreement. It outlines the information technology service levels that we will provide to you to ensure the availability of the application services that you have requested us to provide. All other support services are documented in the Support Call Process. This SLA does not apply to any Third Party SaaS Services. All other support services are documented in the Support Call Process. 0 U II. Definitions. Except as defined below, all defined terms have the meaning set forth in the Agreement. w Actual Attainment: The percentage of time the Tyler Software is available during a calendar month, calculated as follows: (Service Availability — Downtime) _ Service Availability. Client Error Incident: Any service unavailability resulting from your applications, content or equipment, or the acts or omissions of any of your service users or third -party providers over whom we exercise no control. Downtime: Those minutes during Service Availability, as defined below, when all users cannot launch, login, search or save primary data in the Tyler Software. Downtime does not include those instances in which only a Defect is present. Emergency Maintenance Window: (1) maintenance that is required to patch a critical security vulnerability; (2) maintenance that is required to prevent an imminent outage of Service Availability; or (3) maintenance that is mutually agreed upon in writing by Tyler and the Client. Planned Downtime: Downtime that occurs during a Standard or Emergency Maintenance window. Service Availability: The total number of minutes in a calendar month that the Tyler Software is capable of receiving, processing, and responding to requests, excluding Planned Downtime, Client Error Incidents, denial of service attacks and Force Majeure. Service Availability only applies to Tyler Software being used in the live production environment. Standard Maintenance: Routine maintenance to the Tyler Software and infrastructure. Standard Maintenance is limited to five (5) hours per week. III. Service Availability a. Your Responsibilities Whenever you experience Downtime, you must make a support call according to the procedures outlined in the Support Call Process. You will receive a support case number. b. Our Responsibilities ••., tyler 1 Packet Pg. 37 2.2.a Exhibit C When our support team receives a call from you that Downtime has occurred or is occurring, we will work with you to identify the cause of the Downtime (including whether it may be the result of Planned Downtime, a Client Error Incident, denial of service attack or Force Majeure). We will also work with you to resume normal operations. C. Client Relief Our targeted Attainment Goal is 100%. You may be entitled to credits as indicated in the Client Relief Schedule found below. Your relief credit is calculated as a percentage of the SaaS Fees paid for the calendar month. In order to receive relief credits, you must submit a request through one of the channels listed in our Support Call Process within fifteen days (15) of the end of the applicable month. We will respond to your relief request within thirty (30) day(s) of receipt. The total credits confirmed by us will be applied to the SaaS Fee for the next billing cycle. Issuing of such credit does not relieve us of our obligations under the Agreement to correct the problem which created the service interruption. o tU Credits are only payable when Actual Attainment results in eligibility for credits in consecutive months and only for such consecutive months. w Client Relief Schedule Actual Attainment Client Relief :J 99.99% - 99.70% Remedial action will be taken 99.69% - 98.50% 2% of SaaS Fees paid for applicable month 98.49% - 97.50% 4% of SaaS Fees paid for applicable month 97.49% - 96.50% 6% of SaaS Fees paid for applicable month 96.49% - 95.50% 8% of SaaS Fees paid for applicable month Below 95.50% 10% of SaaS Fees paid for applicable month * Notwithstanding language in the Agreement to the contrary, Recovery Point Objective is one (1) hour. IV. Maintenance Notifications We perform Standard Maintenance during limited windows that are historically known to be reliably low -traffic times. If and when maintenance is predicted to occur during periods of higher traffic, we will provide advance notice of those windows and will coordinate to the greatest extent possible with you. Not all maintenance activities will cause application unavailability. However, if Tyler anticipates that ••. tyler 2 Packet Pg. 38 2.2.a Exhibit C activities during a Standard or Emergency Maintenance window may make the Tyler Software unavailable, we will provide advance notice, as reasonably practicable, that the Tyler Software will be unavailable during the maintenance window. Packet Pg. 39 2.2.a • ••::•. ty ler . • technologies Exhibit C Schedule 1 Support Call Process Support Channels Exhibit C Schedule 1 Tyler Technologies, Inc. provides the following channels of software support for authorized users*: (1) On-line submission (portal) — for less urgent and functionality -based questions, users may create support incidents through the Tyler Customer Portal available at the Tyler Technologies website. A built-in Answer Panel provides users with resolutions to most "how-to" and configuration - based questions through a simplified search interface with machine learning, potentially eliminating the need to submit the support case. (2) Email — for less urgent situations, users may submit emails directly to the software support group. (3) Telephone —for urgent or complex questions, users receive toll -free, telephone software support. * Channel availability may be limited for certain applications. Support Resources A number of additional resources are available to provide a comprehensive and complete support experience: (1) Tyler Website — www.tVIertech.com — for accessing client tools, documentation, and other information including support contact information. (2) Tyler Search -a knowledge based search engine that lets you search multiple sources simultaneously to find the answers you need, 247. (3) Tyler Community —provides a venue for all Tyler clients with current maintenance agreements to collaborate with one another, share best practices and resources, and access documentation. (4) Tyler University — online training courses on Tyler products. Support Availability Tyler Technologies support is available during the local business hours of 8 AM to 5 PM (Monday — Friday) across four US time zones (Pacific, Mountain, Central and Eastern). Tyler's holiday schedule is outlined below. There will be no support coverage on these days. New Year's Day Labor Day Martin Luther King, Jr. Day Thanksgiving Day Memorial Day Day after Thanksgiving Independence Day Christmas Day For support teams that provide after-hours service, we will provide you with procedures for contacting support staff after normal business hours for reporting Priority Level 1 Defects only. Upon receipt of ••. tyler Packet Pg. 40 2.2.a Exhibit C Schedule 1 such a Defect notification, we will use commercially reasonable efforts to meet the resolution targets set forth below. We will also make commercially reasonable efforts to be available for one pre -scheduled Saturday of each month to assist your IT staff with applying patches and release upgrades, as well as consulting with them on server maintenance and configuration of the Tyler Software environment. Incident Handling Incident Tracking Every support incident is logged into Tyler's Customer Relationship Management System and given a unique case number. This system tracks the history of each incident. The case number is used to track and reference open issues when clients contact support. Clients may track incidents, using the case L number, through Tyler's Customer Portal or by calling software support directly. c 0 U Incident Priority w Each incident is assigned a priority level, which corresponds to the Client's needs. Tyler and the Client will reasonably set the priority of the incident per the chart below. This chart is not intended to address every type of support incident, and certain "characteristics" may or may not apply depending on whether the Tyler software has been deployed on customer infrastructure or the Tyler cloud. The goal is to help guide the Client towards clearly understanding and communicating the importance of the issue and to describe generally expected response and resolution targets in the production environment only. References to a "confirmed support incident" mean that Tyler and the Client have successfully validated the reported Defect/support incident. Priority Level Characteristics of Support Incident Resolution Targets* Support incident that causes (a) Tyler shall provide an initial response to Priority Level complete application failure or 1 incidents within one (1) business hour of receipt of application unavailability; (b) the incident. Once the incident has been confirmed, 1 application failure or unavailability in Tyler shall use commercially reasonable efforts to Critical one or more of the client's remote resolve such support incidents or provide a location; or (c) systemic loss of circumvention procedure within one (1) business multiple essential system functions. day. For non -hosted customers, Tyler's responsibility for lost or corrupted data is limited to assisting the Client in restoring its last available database. ••., tyler Packet Pg. 41 2.2.a Exhibit C Schedule 1 Priority Characteristics of Support Incident Resolution Targets* Level Support incident that causes (a) Tyler shall provide an initial response to Priority Level repeated, consistent failure of 2 incidents within four (4) business hours of receipt of essential functionality affecting more the incident. Once the incident has been confirmed, than one user or (b) loss or corruption Tyler shall use commercially reasonable efforts to 2 of data. resolve such support incidents or provide a High circumvention procedure within ten (10) business days. For non -hosted customers, Tyler's responsibility for loss or corrupted data is limited to assisting the Client in restoring its last available database. Priority Level 1 incident with an Tyler shall provide an initial response to Priority Level existing circumvention procedure, or 3 incidents within one (1) business day of receipt of a Priority Level 2 incident that affects the incident. Once the incident has been confirmed, only one user or for which there is an Tyler shall use commercially reasonable efforts to 3 existing circumvention procedure. resolve such support incidents without the need for a Medium circumvention procedure with the next published maintenance update or service pack, which shall occur at least quarterly. For non -hosted customers, Tyler's responsibility for lost or corrupted data is limited to assisting the Client in restoring its last available database. Support incident that causes failure of Tyler shall provide an initial response to Priority Level 4 non -essential functionality or a 4 incidents within two (2) business days of receipt of Non- cosmetic or other issue that does not the incident. Once the incident has been confirmed, critical qualify as any other Priority Level. Tyler shall use commercially reasonable efforts to resolve such support incidents, as well as cosmetic issues, with a future version release. `Response and Resolution Targets may differ by product or business need Incident Escalation If Tyler is unable to resolve any priority level 1 or 2 defect as listed above or the priority of an issue has elevated since initiation, you may escalate the incident to the appropriate resource, as outlined by each product support team. The corresponding resource will meet with you and any Tyler staff to establish a mutually agreeable plan for addressing the defect. Remote Support Tool Some support calls may require further analysis of the Client's database, processes or setup to diagnose a problem or to assist with a question. Tyler will, at its discretion, use an industry -standard remote support tool. Tyler's support team must have the ability to quickly connect to the Client's system and view the site's setup, diagnose problems, or assist with screen navigation. More information about the remote support tool Tyler uses is available upon request. ••., tyler Packet Pg. 42 2.2.a Exhibit D • ••::•. tyler • technologies Exhibit D Third Party Terms ThinPrint Terms. Your use of Tyler Forms software and forms is subject to the End User License Agreement terms for ThinPrint Engine, ThinPrint License Server, and Connected Gateway found here: https://www.thinprint.com/en/legal-notes/eula/. By signing a Tyler Agreement or Order Form, or accessing, installing, or using Tyler Forms software or forms, you agree that you have read, understood, and agree to such terms. DocOrigin Terms. Your use of Tyler Forms software and forms is subject to the DocOrigin End User License Agreement available for download here: https://eclipsecorp.us/eula/. By signing a Tyler Agreement or Order Form including Tyler forms software or forms, or accessing, installing, or using Tyler Forms software or forms, you agree that you have read, understood, and agree to such terms. ••., tyler Packet Pg. 43 2.2.a Exhibit E • ••::•. tyler • technologies Exhibit E Statement of Work REMAINDER OF PAGE INTENTIONALLY LEFT BLANK Packet Pg. 44 City of Edmonds, WA SOW from Tyler Technologies, Inc. 6/6/2024 Presented to: City of Edmonds, WA 1215th Ave N Edmonds, WA 98020-3163 Contact: Rich Boven Email: richard.boven@tylertech.com 1 Tyler Drive Yarmouth, Maine 04096 2.2.a • • .':�. tyler •• technologies Packet Pg. 45 2.2.a Table of Contents PART 1: EXECUTIVE SUMMARY...............................................................................................................1 1. Project Overview............................................................................................................................. 1 1.1 Introduction........................................................................................................................................ 1 1.2 Project Goals....................................................................................................................................... 1 1.3 Methodology.......................................................................................................................................1 PART 2: PROJECT FOUNDATION.............................................................................................................3 2. Project Governance......................................................................................................................... 3 3. Project Scope Control...................................................................................................................... 4 3.1 Managing Scope and Project Change................................................................................................. 4 3.2 Change Control................................................................................................................................... 4 3.3 Change Request Management............................................................................................................ 4 4. Acceptance Process......................................................................................................................... 6 5. Roles and Responsibilities................................................................................................................ 6 5.1 Tyler Roles & Responsibilities............................................................................................................. 6 5.1.1 Tyler Executive Manager............................................................................................................. 7 5.1.2 Tyler Implementation Manager.................................................................................................. 7 5.1.3 Tyler Project Manager................................................................................................................. 7 5.1.4 Tyler Implementation Consultant............................................................................................... 8 5.1.5 Tyler Sales................................................................................................................................... 8 5.1.6 Tyler Technical Services.............................................................................................................. 8 5.2 City Roles & Responsibilities............................................................................................................... 9 5.2.1 City Executive Sponsor................................................................................................................ 9 5.2.2 City Steering Committee............................................................................................................. 9 5.2.3 City Project Manager.................................................................................................................. 9 5.2.4 City Functional Leads................................................................................................................ 11 5.2.5 City Power Users....................................................................................................................... 11 5.2.6 City End Users........................................................................................................................... 12 5.2.7 City Technical Lead.................................................................................................................... 12 5.2.8 City Change Management Lead................................................................................................ 12 PART 3: PROJECT PLAN........................................................................................................................... 13 6. Project Stages.................................................................................................................................13 6.1 Initiate and Plan................................................................................................................................ 14 6.1.1 Initial Coordination................................................................................................................... 14 6.1.2 Project/Phase Planning............................................................................................................. 15 6.1.3 Infrastructure Planning............................................................................................................. 16 City of Edmonds, WA Tyler Technologies, Inc. U L _ 0 U a o= w N W N co 0 c 0 L T 2 Cn M ca Cn Q vi 0 E w r m E 0 Q 2.2.a 6.1.4 Stakeholder Meeting................................................................................................................. 17 6.1.5 Intentionally left blank.............................................................................................................. 18 6.1.6 Control Point 1: Initiate & Plan Stage Acceptance.................................................................... 18 6.2 Assess & Define................................................................................................................................. 18 6.2.1 Solution Orientation.................................................................................................................. 18 6.2.2 Current & Future State Analysis................................................................................................ 19 6.2.3 Data Assessment....................................................................................................................... 20 6.2.4 Conversion Assessment............................................................................................................ 22 6.2.5 Intentionally left blank.............................................................................................................. 23 6.2.6 Intentionally left blank.............................................................................................................. 23 6.2.7 Control Point 2: Assess & Define Stage Acceptance................................................................. 23 6.3 Prepare Solution............................................................................................................................... 23 6.3.1 Initial System Deployment........................................................................................................ 23 6.3.2 Configuration............................................................................................................................ 24 6.3.3 Process Refinement.................................................................................................................. 25 6.3.4 Conversion Delivery.................................................................................................................. 27 6.3.5 Intentionally left blank.............................................................................................................. 28 6.3.6 Intentionally left blank.............................................................................................................. 28 6.3.7 Control Point 3: Prepare Solution Stage Acceptance................................................................ 28 6.4 Production Readiness....................................................................................................................... 29 6.4.1 Solution Validation.................................................................................................................... 29 6.4.2 Go -Live Readiness..................................................................................................................... 30 6.4.3 End User Training...................................................................................................................... 31 6.4.4 Control Point 4: Production Readiness Stage Acceptance........................................................ 32 6.5 Production .........................................................................................................................................32 6.5.1 Go-Live...................................................................................................................................... 32 6.5.2 Transition to Client Services...................................................................................................... 34 6.5.3 Post Go -Live Activities............................................................................................................... 35 6.5.4 Control Point 5: Production Stage Acceptance......................................................................... 35 6.6 Close ..................................................................................................................................................36 6.6.1 Phase Closeout.......................................................................................................................... 36 6.6.2 Project Closeout........................................................................................................................ 37 6.6.3 Control Point 6: Close Stage Acceptance.................................................................................. 38 7. General Assumptions......................................................................................................................38 7.1 Project...............................................................................................................................................38 7.2 Organizational Change Management............................................................................................... 39 7.3 Resources and Scheduling................................................................................................................ 39 7.4 Data................................................................................................................................................... 39 7.5 Facilities.............................................................................................................................................40 8. Glossary.........................................................................................................................................41 PART 4: APPENDICES............................................................................................................................... 44 9. Conversion.....................................................................................................................................44 City of Edmonds, WA Tyler Technologies, Inc. U c 0 U a w w le N 0 N co 0 c 0 w L T r- Cn M ca Cn Q vi 0 E w r m E 0 Q 2.2.a 9.1 Enterprise ERP Conversion Summary............................................................................................... 44 9.1.1 Accounting................................................................................................................................ 44 9.1.2 Accounts Payable...................................................................................................................... 44 9.1.3 Project Accounting.................................................................................................................... 44 9.1.4 Purchase Orders........................................................................................................................ 45 9.1.5 Human Resources Management............................................................................................... 45 9.1.6 General Billing........................................................................................................................... 46 9.1.7 Utility Billing.............................................................................................................................. 46 10. Additional Appendices................................................................................................................48 10.1 Intentionally left blank...................................................................................................................... 48 11. Project Timeline..........................................................................................................................49 11.1 ERP Project Timeline.........................................................................................................................49 11.2 Intentionally left blank...................................................................................................................... 50 City of Edmonds, WA Tyler Technologies, Inc. Page / iii Packet Pg. 48 Part 1: Executive Summary 1. Project Overview 1.1 Introduction Tyler Technologies ("Tyler") is the largest and most established provider of integrated software and technology services focused solely on the public sector. Tyler's end -to -end solutions empower public sector entities including local, state, provincial and federal government, to operate more efficiently and connect more transparently with their constituents and with each other. By connecting data and processes across disparate systems, Tyler's solutions transform how clients gain actionable insights that solve problems in their communities. 1.2 Project Goals This Statement of Work ("SOW") documents the methodology, implementation stages, activities, and roles and responsibilities, and project scope listed in the Investment Summary of the Agreement between Tyler and the City (collectively the "Project"). The overall goals of the project are to: ■ Successfully implement the contracted scope on time and on budget ■ Increase operational efficiencies and empower users to be more productive ■ Improve accessibility and responsiveness to external and internal customer needs ■ Overcome current challenges and meet future goals 1.3 Methodology This is accomplished by the City and Tyler working as a partnership and Tyler utilizing its depth of implementation experience. While each Project is unique, all will follow Tyler's six -stage methodology. Each of the six stages is comprised of multiple work packages, and each work package includes a narrative description, objectives, tasks, inputs, outputs/deliverables, assumptions, and a responsibility matrix. Tailored specifically for Tyler's public sector clients, the project methodology contains Stage Acceptance Control Points throughout each Phase to ensure adherence to scope, budget, timeline controls, effective communications, and quality standards. Clearly defined, the project methodology repeats consistently across Phases, and is scaled to meet the City's complexity and organizational needs. City of Edmonds, WA Tyler Technologies, Inc. Page / 1 Packet Pg. 49 Tyler's Six Stage Project Methodology INITIATE i MW ASSExSi MW PRf?ARE MW PRODUCTION CIOfE PUN Of 'R Sf11M Rf'�DINESS The methodology adapts to both single-phase and multiple -phase projects. r c 0 To achieve Project success, it is imperative that both the City and Tyler commit to including the necessary v leadership and governance. During each stage of the Project, it is expected that the City and Tyler Project teams work collaboratively to complete tasks. An underlying principle of Tyler's Implementation process is to w employ an iterative model where the City's business processes are assessed, configured, validated, andto N refined cyclically in line with the project budget. This approach is used in multiple stages and work packages as illustrated in the graphic below. Iterative Project Model The delivery approach is systematic, which reduces variability and mitigates risks to ensure Project success. As illustrated, some stages, along with work packages and tasks, are intended to be overlapping by nature to complete the Project efficiently and effectively. City of Edmonds, WA Tyler Technologies, Inc. Page / 2 Packet Pg. 50 2.2.a Part 2: Project Foundation 2. Project Governance Project governance is the management framework within which Project decisions are made. The role of Project governance is to provide a decision -making approach that is logical, robust, and repeatable. This allows organizations to have a structured approach for conducting its daily business in addition to project related activities. This section outlines the resources required to meet the business needs, objectives, and priorities for the Project, communicate the goals to other Project participants, and provide support and guidance to accomplish these goals. Project governance defines the structure for escalation of issues and risks, Change Control review and authority, and Organizational Change Management activities. Throughout the Statement of Work Tyler has provided RACI Matrices for activities to be completed throughout the implementation L which will further outline responsibilities of different roles in each stage. Further refinement of the V governance structure, related processes, and specific roles and responsibilities occurs during the Initiate & a JY Plan Stage. w The chart below illustrates an overall team perspective where Tyler and the City collaborate to resolve Project challenges according to defined escalation paths. If project managers do not possess authority to determine a solution, resolve an issue, or mitigate a risk, Tyler implementation management and the City Steering Committee become the escalation points to triage responses prior to escalation to the City and Tyler executive sponsors. As part of the escalation process, each Project governance tier presents recommendations and supporting information to facilitate knowledge transfer and issue resolution. The City and Tyler executive sponsors serve as the final escalation point. Project Governance Relationships LEADERSHIPCLIENT EXECUTIVE SPONSOR Champions the project, secures buy -in, provides oversight and ultimate decision -making STEERING COMMITTEE Monitors progress, goals and objectives PROJECT MANAGER Oversees project schedule and tasks EXECUTIVE SPONSOR Provides oversight and ultimate decision -making IMPLEMENTATION MANAGER Monitors progress y PROJECT MANAGER Oversees project schedule and tasks City of Edmonds, WA Tyler Technologies, Inc. Page / 3 Packet Pg. 51 3. Project Scope Control 3.1 Managing Scope and Project Change Project Management governance principles contend that there are three connected constraints on a Project: budget, timeline, and scope. These constraints, known as the "triple constraints" or project management triangle, define budget in terms of financial cost, labor costs, and other resource costs. Scope is defined as the work performed to deliver a product, service or result with the specified features and functions, while time is simply defined as the schedule. The Triple Constraint theory states that if you change one side of the triangle, the other two sides must be correspondingly adjusted. For example, if the scope of the Project is increased, cost and time to complete will also need to increase. The Project and executive teams will need to remain cognizant of these constraints when making impactful decisions to the Project. A simple illustration of this triangle is included here, showing the connection of each item and their relational impact to the overall Scope. Project Management Triangle A pillar of any successful project is the ability to properly manage scope while allowing the appropriate level of flexibility to incorporate approved changes. Scope and changes within the project will be managed using the change control process outlined in the following section. 3.2 Change Control It may become necessary to change the scope of this Project due to unforeseeable circumstances (e.g., new constraints or opportunities are discovered). This Project is being undertaken with the understanding that Project scope, schedule, and/or cost may need to change to produce optimal results for stakeholders. Changes to contractual requirements will follow the change control process specified in the final contract, and as described below. 3.3 Change Request Management Should the need for a change to Project scope, schedule, and/or cost be identified during the Project, the change will be brought to the attention of the Steering Committee and an assessment of the change will occur. While such changes may result in additional costs and delays relative to the schedule, some changes may result in less cost to the City; for example, the City may decide it no longer needs a deliverable originally defined in the Project. The Change Request will include the following information: City of Edmonds, WA Tyler Technologies, Inc. Page / 4 Packet Pg. 52 2.2.a ■ The nature of the change. ■ A good faith estimate of the additional cost or associated savings to the City, if any. ■ The timetable for implementing the change. ■ The effect on and/or risk to the schedule, resource needs or resource responsibilities The City will use its good faith efforts to either approve or disapprove any Change Request within ten (10) Business Days (or other period as mutually agreeable between Tyler and the City). Any changes to the Project scope, budget, or timeline must be documented and approved in writing using a Change Request form. These changes constitute a formal amendment to the Statement of Work and will supersede any conflicting term in the Statement of Work. CLIENT IDENTIFIES NEED/ DESIRE FOR CHANGE Change Request Process SCOPE DETAILS TYLER ASSESSES/ CLIENT DETAILS IFTYLER AGREES CLIENT AUTHORIZES SCHEDULE ADJUSTED TO DETERMINES OUT NEED IN CHANGE WITH THE REQUEST OR DECLINES THE ACCOMMODATE THE OF SCOPE REQUEST FORM CHANGE CHANGE IF NECESSARY If Tyler Agrees with Request Estimate provided to Ghent. otherwise reason for denial provided Including addition of new tasks that result from the change City of Edmonds, WA Tyler Technologies, Inc. Page / 5 Packet Pg. 53 4. Acceptance Process The implementation of a Project involves many decisions to be made throughout its lifecycle. Decisions will vary from higher level strategy decisions to smaller, detailed Project level decisions. It is critical to the success of the Project that each City office or department designates specific individuals for making decisions on behalf of their offices or departments. Both Tyler and the City will identify representative project managers. These individuals will represent the interests of all stakeholders and serve as the primary contacts between the two organizations. The coordination of gaining City feedback and approval on Project deliverables will be critical to the success of the Project. The City project manager will strive to gain deliverable and decision approvals from all authorized City representatives. Given that the designated decision -maker for each department may not always be available, there must be a designated proxy for each decision point in the Project. Assignment of each proxy will be the responsibility of the leadership from each City department. The proxies will be named individuals r that have the authorization to make decisions on behalf of their department. c t� The following process will be used for accepting Deliverables and Control Points: w ■ The City shall have five (5) business days from the date of delivery, or as otherwise mutually agreed upon by the parties in writing, to accept each Deliverable or Control Point. If the City does not provide acceptance or acknowledgement within five (5) business days, or the otherwise agreed upon timeframe, not to be unreasonably withheld, Tyler deems the Deliverable or Control Point as accepted. If the City does not agree the Deliverable or Control Point meets requirements, the City shall notify Tyler project manager(s), in writing, with reasoning within five (5) business days, or the otherwise agreed -upon timeframe, not to be unreasonably withheld, of receipt of the Deliverable. Tyler shall address any deficiencies and redeliver the Deliverable or Control Point. The City shall then have two (2) business days from receipt of the redelivered Deliverable or Control Point to accept or again submit written notification of reasons for rejecting the milestone. If the City does not provide acceptance within two (2) business days, or the otherwise agreed upon timeframe, not to be unreasonably withheld, Tyler deems the Deliverable or Control Point as accepted. 5. Roles and Responsibilities The following defines the roles and responsibilities of each Project resource for the City and Tyler. Roles and responsibilities may not follow the organizational chart or position descriptions at the City, but are roles defined within the Project. It is common for individual resources on both the Tyler and City project teams to fill multiple roles. Similarly, it is common for some roles to be filled by multiple people. 5.1 Tyler Roles & Responsibilities Tyler assigns a project manager prior to the start of each Phase of the Project (some Projects may only be one Phase in duration). Additional Tyler resources are assigned as the schedule develops and as needs arise. City of Edmonds, WA Tyler Technologies, Inc. Page / 6 Packet Pg. 54 5.1.1 Tyler Executive Manager Tyler executive management has indirect involvement with the Project and is part of the Tyler escalation process. This team member offers additional support to the Project team and collaborates with other Tyler department managers as needed to escalate and facilitate implementation Project tasks and decisions. ■ Provides clear direction for Tyler staff on executing on the Project Deliverables to align with satisfying the City's overall organizational strategy. ■ Authorizes required Project resources. ■ Resolves all decisions and/or issues not resolved at the implementation management level as part of the escalation process. ■ Acts as the counterpart to the City's executive sponsor. 5.1.2 Tyler Implementation Manager ■ Tyler implementation management has indirect involvement with the Project and is part of the Tyler escalation process. The Tyler project managers consult implementation management on issues and v outstanding decisions critical to the Project. Implementation management works toward a solution a W with the Tyler Project Manager or with City management as appropriate. Tyler executive w management is the escalation point for any issues not resolved at this level. N ■ Assigns Tyler Project personnel. N ■ Provides support for the Project team. c ■ Provides management support for the Project to ensure it is staffed appropriately and staff have o necessary resources. ■ Monitors Project progress including progress towards agreed upon goals and objectives. 5.1.3 Tyler Project Manager ■ The Tyler project manager(s) provides oversight of the Project, coordination of Tyler resources between departments, management of the Project budget and schedule, effective risk, and issue management, and is the primary point of contact for all Project related items. As requested by the City, the Tyler Project Manager provides regular updates to the City Steering Committee and other Tyler governance members. Tyler Project Manager's role includes responsibilities in the following areas: 5.1.3.1 Contract Management ■ Validates contract compliance throughout the Project. ■ Ensures Deliverables meet contract requirements. ■ Acts as primary point of contact for all contract and invoicing questions. ■ Prepares and presents contract milestone sign -offs for acceptance by the City project manager(s). ■ Coordinates Change Requests, if needed, to ensure proper Scope and budgetary compliance. 5.1.3.2 Planning ■ Delivers project planning documents. ■ Defines Project tasks and resource requirements. ■ Develops initial Project schedule and Project Management Plan. ■ Collaborates with the City project manager(s) to plan and schedule Project timelines to achieve on - time implementation. City of Edmonds, WA Tyler Technologies, Inc. Page / 7 Packet Pg. 55 2.2.a 5.1.3.3 Implementation Management ■ Tightly manages Scope and budget of Project to ensure Scope changes and budget planned versus actual are transparent and handled effectively and efficiently. ■ Establishes and manages a schedule and Tyler resources that properly support the Project Schedule and are also in balance with Scope/budget. ■ Establishes risk/issue tracking/reporting process between the City and Tyler and takes all necessary steps to proactively mitigate these items or communicate with transparency to the City any items that may impact the outcomes of the Project. ■ Collaborates with the City's project manager(s) to establish key business drivers and success indicators that will help to govern Project activities and key decisions to ensure a quality outcome of the project. ■ Collaborates with the City's project manager(s) to set a routine communication plan that will aide all Project team members, of both the City and Tyler, in understanding the goals, objectives, status, and health of the Project. L r c 5.1.3.4 Resource Management a ■ Acts as liaison between Project team and Tyler manager(s). w ■ Identifies and coordinates all Tyler resources across all applications, Phases, and activities including development, forms, installation, reports, implementation, and billing. to ■ Provides direction and support to Project team. ■ Manages the appropriate assignment and timely completion of tasks as defined in the Project Schedule, task list, and Go -Live Checklist. ■ Assesses team performance and adjusts as necessary. ■ Consulted on in Scope 3rd party providers to align activities with ongoing Project tasks. 5.1.4 Tyler Implementation Consultant ■ Completes tasks as assigned by the Tyler project manager(s). ■ Documents activities for services performed by Tyler. ■ Guides the City through software validation process following configuration. ■ Assists during Go -Live process and provides support until the City transitions to Client Services. ■ Facilitates training sessions and discussions with the City and Tyler staff to ensure adequate discussion of the appropriate agenda topics during the allotted time. ■ May provide conversion review and error resolution assistance. 5.1.5 Tyler Sales ■ Supports Sales to Implementation knowledge transfer during Initiate & Plan. ■ Provides historical information, as needed, throughout implementation. ■ Participates in pricing activities if additional licensing and/or services are needed. 5.1.6 Tyler Technical Services ■ Maintains Tyler infrastructure requirements and design document(s). ■ Involved in system infrastructure planning/review(s). ■ Provides first installation of licensed software with initial database on servers. ■ Supports and assists the project team with technical/environmental issues/needs. ■ Deploys Tyler products. City of Edmonds, WA Tyler Technologies, Inc. Page / 8 Packet Pg. 56 2.2.a 5.2 City Roles & Responsibilities City resources will be assigned prior to the start of each Phase of the Project. One person may be assigned to multiple Project roles. 5.2.1 City Executive Sponsor The City executive sponsor provides support to the Project by providing strategic direction and communicating key issues about the Project and its overall importance to the organization. When called upon, the executive sponsor also acts as the final authority on all escalated Project issues. The executive sponsor engages in the Project, as needed, to provide necessary support, oversight, guidance, and escalation, but does not participate in day-to-day Project activities. The executive sponsor empowers the City steering committee, project manager(s), and functional leads to make critical business decisions for the City. ■ Champions the project at the executive level to secure buy -in. L ■ Authorizes required project resources. c ■ Actively participates in organizational change communications. V IL a 5.2.2 City Steering Committee w The City steering committee understands and supports the cultural change necessary for the Project and fosters an appreciation for the Project's value throughout the organization. The steering committee oversees the City project manager and Project through participation in regular internal meetings. The City steering committee remains updated on all Project progress, Project decisions, and achievement of Project milestones. The City steering committee also serves as primary level of issue resolution for the Project. ■ Works to resolve all decisions and/or issues not resolved at the project manager level as part of the escalation process. ■ Attends all scheduled steering committee meetings. ■ Provides support for the project team. ■ Assists with communicating key project messages throughout the organization. ■ Prioritizes the project within the organization. ■ Ensures the project staffed appropriately and that staff have necessary resources. ■ Monitors project progress including progress towards agreed upon goals and objectives. ■ Has the authority to approve or deny changes impacting the following areas: o Cost o Scope o Schedule o Project Goals o City Policies o Needs of other client projects 5.2.3 City Project Manager The City shall assign project manager(s) prior to the start of this project with overall responsibility and authority to make decisions related to Project Scope, scheduling, and task assignment. The City Project Manager should communicate decisions and commitments to the Tyler project manager(s) in a timely and efficient manner. When the City project manager(s) do not have the knowledge or authority to make decisions, he or she engages the necessary resources to participate in discussions and make decisions in a City of Edmonds, WA Tyler Technologies, Inc. Page / 9 Packet Pg. 57 2.2.a timely fashion to avoid Project delays. The City project manager(s) are responsible for reporting to the City steering committee and determining appropriate escalation points. 5.2.3.1 Contract Management ■ Validates contract compliance throughout the project. ■ Ensures that invoicing and Deliverables meet contract requirements. ■ Acts as primary point of contact for all contract and invoicing questions. Collaborates on and approves Change Requests, if needed, to ensure proper scope and budgetary compliance. 5.2.3.2 Planning ■ Reviews and accepts project planning documents ■ Defines project tasks and resource requirements for the City project team ■ Collaborates in the development and approval of the project schedule. ■ Collaborates with Tyler project manager(s) to plan and schedule project timelines to achieve on -time r implementation. o U 5.2.3.3 Implementation Management IL ■ Tightly manages project budget and scope. ■ Collaborates with Tyler project manager(s) to establish a process and approval matrix to ensure that scope changes and budget (planned versus actual) are transparent and handled effectively and efficiently. ■ Collaborates with Tyler project manager to establish and manage a schedule and resource plan that properly supports the project schedule as a whole and is also in balance with scope and budget. ■ Collaborates with Tyler project manager(s) to establish risk and issue tracking and reporting process between the City and Tyler and takes all necessary steps to proactively mitigate these items or communicate with transparency to Tyler any items that may impact the outcomes of the project. ■ Collaborates with Tyler project manager(s) to establish key business drivers and success indicators that will help to govern project activities and key decisions to ensure a quality outcome of the project ■ Routinely communicates with both the City staff and Tyler, aiding in the understanding of goals, objectives, current status, and health of the project by all team members. ■ Manages the requirements gathering process and ensure timely and quality business requirements are being provided to Tyler. 5.2.3.4 Resource Management ■ Acts as liaison between project team and stakeholders. ■ Identifies and coordinates all City resources across all modules, phases, and activities including data conversions, forms design, hardware and software installation, reports building, and satisfying invoices. ■ Provides direction and support to project team. ■ Builds partnerships among the various stakeholders, negotiating authority to move the project forward. ■ Manages the appropriate assignment and timely completion of tasks as defined. ■ Assesses team performance and takes corrective action, if needed. ■ Provides guidance to City technical teams to ensure appropriate response and collaboration with Tyler Technical Support Teams to ensure timely response and appropriate resolution. ■ Owns the relationship with in -Scope 3rd party providers and aligns activities with ongoing project tasks. City of Edmonds, WA Tyler Technologies, Inc. Page / 10 Packet Pg. 58 2.2.a ■ Ensures that users have appropriate access to Tyler project toolsets as required. ■ Conducts training on proper use of toolsets. ■ Validates completion of required assignments using toolsets. 5.2.4 City Functional Leads ■ Makes business process change decisions under time sensitive conditions. ■ Communicates existing business processes and procedures to Tyler consultants. ■ Assists in identifying business process changes that may require escalation. ■ Contributes business process expertise for Current & Future State Analysis. ■ Identifies and includes additional subject matter experts to participate in Current & Future State Analysis. ■ Validates that necessary skills have been retained by end users. ■ Provides End Users with dedicated time to complete required homework tasks. ■ Acts as an ambassador/champion of change for the new process and provide business process change support. ■ Identifies and communicates any additional training needs or scheduling conflicts to the City project manager. ■ Actively participates in all aspects of the implementation, including, but not limited to, the following key activities: o Task completion o Stakeholder Meeting o Project Management Plan development o Schedule development o Maintenance and monitoring of risk register o Escalation of issues o Communication with Tyler project team o Coordination of City resources o Attendance at scheduled sessions o Change management activities o Modification specification, demonstrations, testing and approval assistance o Data analysis assistance o Decentralized end user training o Process testing o Solution Validation 5.2.5 City Power Users ■ Participate in project activities as required by the project team and project manager(s). ■ Provide subject matter expertise on the City business processes and requirements. ■ Act as subject matter experts and attend Current & Future State Analysis sessions as needed. ■ Attend all scheduled training sessions. ■ Participate in all required post -training processes as needed throughout project. ■ Test all application configuration to ensure it satisfies business process requirements. ■ Become application experts. ■ Participate in Solution Validation. ■ Adopt and support changed procedures. ■ Complete all deliverables by the due dates defined in the project schedule. ■ Demonstrate competency with Tyler products processing prior to Go -live. ■ Provide knowledge transfer to the City staff during and after implementation. City of Edmonds, WA Tyler Technologies, Inc. Page / 11 Packet Pg. 59 ■ Participate in conversion review and validation. 5.2.6 City End Users ■ Attend all scheduled training sessions. ■ Become proficient in application functions related to job duties. ■ Adopt and utilize changed procedures. ■ Complete all deliverables by the due dates defined in the project schedule. ■ Utilize software to perform job functions at and beyond Go -live. 5.2.7 City Technical Lead ■ Coordinates updates and releases with Tyler as needed. ■ Coordinates the copying of source databases to training/testing databases as needed for training days. ■ Coordinates and adds new users, printers and other peripherals as needed. ■ Validates that all users understand log -on process and have necessary permission for all training sessions. ■ Coordinates interface development for City third party interfaces. ■ Develops or assists in creating reports as needed. ■ Ensures on -site system meets specifications provided by Tyler. ■ Assists with software installation as needed. ■ Extracts and transmits conversion data and control reports from the City's legacy system per the conversion schedule set forth in the project schedule. 5.2.7.1 City Upgrade Coordination ■ Becomes familiar with the software upgrade process and required steps. ■ Becomes familiar with Tyler's releases and updates. ■ Utilizes Tyler resources to stay abreast of the latest Tyler releases and updates, as well as the latest helpful tools to manage the City's software upgrade process. ■ Assists with the software upgrade process during implementation. ■ Manages software upgrade activities post -implementation. ■ Manages software upgrade plan activities. ■ Coordinates software upgrade plan activities with City and Tyler resources. ■ Communicates changes affecting users and department stakeholders. ■ Obtains department stakeholder acceptance to upgrade production environment. 5.2.8 City Change Management Lead ■ Validates that users receive timely and thorough communication regarding process changes. ■ Provides coaching to supervisors to prepare them to support users through the project changes. ■ Identifies the impact areas resulting from project activities and develops a plan to address them proactively. ■ Identifies areas of resistance and develops a plan to reinforce the change. ■ Monitors post -production performance and new process adherence. City of Edmonds, WA Tyler Technologies, Inc. Page / 12 Packet Pg. 60 Part 3: Project Plan Project Stages Work Breakdown Structure The Work Breakdown Structure (WBS) is a hierarchical representation of a Project or Phase broken down into smaller, more manageable components. The top-level components are called "Stages" and the second level components are called "Work Packages". The work packages, shown below each stage, contain the high-level work to be done. The detailed Project Schedule, developed during Project/Phase Planning and finalized during subsequent stages, lists the tasks to be completed within each work package. Each stage ends with a "Control Point", confirming the work performed during that stage of the Project has been accepted by the City. Work Breakdown Structure (WBS) 1.1 Initial 2.1 Solution 3.1 Initial System Coordination Orientation Deployment 1.2 Project/Phase 2.2 Current & Future Planning State Analysis 3.2 Configuration 1.3 GIS Planning* 1.4 Infrastructure Planning 1.5 Stakeholder Meeting 2.3 Modification 3.3 Process Analysis Refinement 2.4 Conversion 3.4 Conversion Assessment Delivery 2.5 Data Assessment 3.5 Data Delivery 3.6 Modifications* 4.1 Solution 5.1 Go Live 6.1 Phase Close Validation Out 4.2 Go Live 5.2 Transition to 6.2 Project Close Readiness Client Services Out 4.3 End User 5.3 Post Go Live Training Activities */terns noted with an asterisk in thegraphic above relate to specific products and services. if those products and services are not included in the scope of the contract, these specific work packages will be noted as 'Intentionally Left Blank"in Section 6 of the Statement of Work. City of Edmonds, WA Tyler Technologies, Inc. �a L O V IL IX w v N (0 N CD C O R L co R R co Q N C O E W C N E t v ca Q Page / 13 Packet Pg. 61 6.1 Initiate and Plan The Initiate and Plan stage involves Project initiation, infrastructure, and planning. This stage creates a foundation for the Project by identifying and establishing sequence and timing for each Phase as well as verifying scope for the Project. This stage will be conducted at the onset of the Project, with a few unique items being repeated for the additional Phases as needed. 6.1.1 Initial Coordination Prior to Project commencement, Tyler management assigns project manager(s). Additional Project resources will be assigned later in the Project as a Project schedule is developed. Tyler provides the City with initial Project documents used to gather names of key personnel, their functional role as it pertains to the Project, as well as any blackout dates to consider for future planning. the City gathers the information requested by the provided deadline ensuring preliminary planning and scheduling can be conducted moving the Project forward in a timely fashion. Internally, the Tyler Project Manager(s) coordinate with sales to ensure transfer of vital information from the sales process prior to scheduling a Project Planning Meeting with the City's c team. During this step, Tyler will work with the City to establish the date(s) for the Project and Phase Planning V session. a a w Objectives: ■ Formally launch the project. ■ Establish project governance. ■ Define and communicate governance for Tyler. ■ Identify City project team. STAGE 1 Initial Coordination Tyler City RACI MATRIX KEY: R = Responsible o A = Accountable73 J C = Consulted � cu C N v L Q) I = Informed v O a, ate-+ a, Q W C O bA C O rdj U 'L cn O vl ro r6 j co Q O _ cn V L > O m J ro ro ro C 73 4J 2 N 4J v W ro ca C N a-+ 73 dA z � '�..� W E i N u C v Q Q E a--� O ccx u N 4J N O C ro O- U W u- U n W Tyler project team is assigned A R C I I I I I I City project team is assigned A I R I I I Provide initial project A R C C I I documents to the City Gather preliminary information I A R C C C C requested Sales to implementation knowledge transfer A R I I I I I Create Project Portal to store project artifacts and facilitate A R I communication City of Edmonds, WA Tyler Technologies, Inc. Inputs Contract documents Statement of Work Outputs/Deliverables Working initial project documents Project portal Work package assumptions: ■ Project activities begin after the agreement has been fully executed. 6.1.2 Project/Phase Planning Project and Phase planning provides an opportunity to review the contract, software, data conversions and services purchased, identify applications to implement in each Phase (if applicable), and discuss implementation timeframes. r c 0 During this work package Tyler will work with the City to coordinate and plan a formal Project planning v a meeting(s). This meeting signifies the start of the Project and should be attended by all City Project team w members and the Tyler Project Manager. The meeting provides an opportunity for Tyler to introduce its implementation methodology, terminology, p gy, gy, and Project management best practices to the City's Project � N to Team. This will also present an opportunity for project managers and Project sponsors to begin to discuss W Project communication, metrics, status reporting and tools to be used to measure Project progress and = manage change. ° Tyler will work with the City Project Team to prepare and deliver the Project Management Plan as an output of the planning meeting. This plan will continue to evolve and grow as the Project progresses and will describe how the project will be executed, monitored, and controlled. During project planning, Tyler will introduce the tools that will be used throughout the implementation. Tyler will familiarize the City with these tools during project planning and make them available for review and maintenance as applicable throughout the project. Some examples are Solution validation plan, issue log, and go -live checklist. STAGE 1 Project/Phase Planning Tyler City RACI MATRIX KEY: v R = Responsible o A =Accountable J C = Consulted I = Informed a`, c O v U L v a1 +, c aJ N O X -a bA c O L h0 O L cn U > O [Z O �+ L dA In o 40 ca w aJ f0 2 _0 C O L cn v V cn O J to co > + a! E a! = Q X " ca V a) N > +, 4.0 c o v 2 E N u D a V v 0 N Q w S° p c u + v aa)i v U v 0 + c c N L ca cL a c u X w E L a E v — U X w cn L w U D cn v c w aI Schedule and conduct planning A R I C C I session(s) City of Edmonds, WA Tyler Technologies, Inc. Page / 15 Packet Pg. 63 2.2.a Develop Project A R I C C I Management Plan Develop initial R I I I I I C C I I C project schedule Inputs Contract documents Statement of Work Guide to Starting Your Project Outputs / Deliverables Acceptance Criteria [only] for Deliverables Project Management Plan Delivery of document Project Operational Plan Delivery of document Initial Project Schedule City provides acceptance of schedule based on resource availability, project budget, and goals. Work package assumptions: ■ City has reviewed and completed the Guide to Starting Your Project document 6.1.3 Infrastructure Planning Procuring required hardware and setting it up properly is a critical part of a successful implementation. This task is especially important for Tyler-hosted/SaaS deployment models. Tyler will be responsible for building the environments for a hosted/SaaS deployment, unless otherwise identified in the Agreement. Tyler will install Licensed Software on application server(s) or train the City to install License Software. The City is responsible for the installation and setup of all peripheral devices. Objectives: ■ Ensure the City's infrastructure meets Tyler's application requirements. ■ Ensure the City's infrastructure is scheduled to be in place and available for use on time. STAGE 1 Infrastructure Planning Tyler City RACI MATRIX KEY: R = Responsible A = Accountable ro a, v C = Consulted iv U0 U v L O Ew CL 0 I= Informed o W o •++ N > InE O U0 ro W °1 (O + c6 m C (6 c6 a—+ v U) N U Q V1 E (O (6 J > 41 E �., 41 E Q X .0 c6 U (O U i N cn > U h0 C a--' 76 O 41 U E N V_ �, D Q U N .0 Q W +�.+ `.� �O C U +� N +.+ � N v U a1 0 a-+ U C pp C m v -0 i' c6 fl- -6 C V X w E. L a E. � .— U X w — v) L a D u- � U � L 4% C w N Provide Infrastructure Requirements and A R C C I I Design Document Initial Infrastructure A R C C C ��l C Meeting City of Edmonds, WA40 Tyler Technologies, Inc. Page 16 Packet Pg. 64 2.2.a Schedule SaaS Environment A R C I Availability Schedule Installation of All Licensed A R C I I Software Infrastructure Audit A R C I C Inputs I Initial Infrastructure Requirements Outputs / Deliverables Acceptance Criteria [only] for Deliverables Completed Infrastructure Requirements Delivery of Requirements Infrastructure Audit System Passes Audit Criteria r �a L 6.1.4 Stakeholder Meeting c V Communication of the Project planning outcomes to the City Project team, executives and other key stakeholders is vital to Project success. The Stakeholder meeting is a strategic activity to inform, engage, gain w commitment, and instill confidence in the City team. During the meeting, the goals and objectives of the N Project will be reviewed along with detail on Project scope, implementation methodology, roles and responsibilities, Project timeline and schedule, and keys to Project success. c Objectives: ■ Formally present and communicate the project activities and timeline. ■ Communicate project expectations. STAGE 1 Stakeholder Meeting Tyler City RACI MATRIX KEY: L a) R = Responsible A = Accountable a) J o C = Consulted M 73 Vl N L I = Informed v ° a a) C O 4.0 O cn .� cn O E: bA ca v fD W N m ) O cn .L O ra ncc3 J co co c 31 j a) G a) Q m _ ca a) > G C cc G cc G _ (o 73 v Q U � Q W p V a-+ a) a-+ 73 a) -EV (UO C l].0 m V i -0 C V W E d E 0 cc G U W (n d U- U cn W Create Stakeholder I A R I I I C I Meeting Presentation Review Stakeholder Meeting Presentation I C A R C Perform Stakeholder Meeting Presentation I A R I I I I C I I I I I I Inputs Agreement Sow City of Edmonds, WA Tyler Technologies, Inc. Page / 17 Packet Pg. 65 2.2.a Project Management Plan Outputs / Deliverables Acceptance Criteria [only] for Deliverables Stakeholder Meeting Presentation Work package assumptions: • None 6.1.5 Intentionally left blank. 6.1.6 Control Point 1: Initiate & Plan Stage Acceptance Acceptance criteria for this stage includes completion of all criteria listed below. P r c 0 Note: Advancement to the Assess & Define stage is not dependent upon Tyler's receipt of this stage v acceptance. w Initiate & Plan Stage Deliverables: ■ Project Management Plan ■ Initial Project Schedule Initiate & Plan stage acceptance criteria: ■ All stage deliverables accepted based on acceptance criteria previously defined ■ Project governance defined ■ Project portal made available to the City ■ Stakeholder meeting complete 6.2 Assess & Define The Assess & Define stage will provide an opportunity to gather information related to current City business processes. This information will be used to identify and define business processes utilized with Tyler software The City collaborates with Tyler providing complete and accurate information to Tyler staff and assisting in analysis, understanding current workflows and business processes. 6.2.1 Solution Orientation The Solution Orientation provides the Project stakeholders a high-level understanding of the solution functionality prior to beginning the current and future state analysis. The primary goal is to establish a foundation for upcoming conversations regarding the design and configuration of the solution. Tyler utilizes a variety of tools for the Solution Orientation, focusing on City team knowledge transfer such as: eLearning, documentation, or walkthroughs. The City team will gain a better understanding of the major processes and focus on data flow, the connection between configuration options and outcome, integration, and terminology that may be unique to Tyler's solution. Objectives: City of Edmonds, WA Tyler Technologies, Inc. Page / 18 Packet Pg. 66 2.2.a ■ Provide a basic understanding of system functionality. ■ Prepare the City for current and future state analysis. STAGE 2 Solution Orientation Tyler City RACI MATRIX KEY: v R = Responsible o A = Accountable ° M a C = Consulted I =Informed c O U U U L N O C N E QJ Q- X -O bA C O L QJ W O i Q) v) Q) U 'j O Ln � a; E L Q) u) C0 w Q) -6 i O Ln U v1 O J c0 ca � j +1 Q) E }, Q) E Q X m U M U Q) U) > �, pp C c c — c O cc G QJ u E QJ m U_ u -2Q Q ' � te ai U 0 i _0 U X w E U X w v) a D w U c v) c w Q) Provide pre -requisites A R I I I I I Complete pre -requisites A R C C Conduct orientation A R I I I I I Inputs Solution orientation materials Training Plan 6.2.2 Current & Future State Analysis The Current & Future State Analysis provides the Project stakeholders and Tyler an understanding of process changes that will be achieved with the new system. The City and Tyler will evaluate current state processes, options within the new software, pros and cons of each based on current or desired state and make decisions about the future state configuration and processing. This may occur before or within the same timeframe as the configuration work package. The options within the new software will be limited to the scope of this implementation and will make use of standard Tyler functionality. The City will adopt the existing Tyler solution wherever possible to avoid project schedule and quality risk from over customization of Tyler products. It is the City's responsibility to verify that in -scope requirements are being met throughout the implementation if functional requirements are defined as part of the contract. The following guidelines will be followed when evaluating if a modification to the product is required: ■ A reasonable business process change is available. ■ Functionality exists which satisfies the requirement. ■ Configuration of the application satisfies the requirement. ■ An in -scope modification satisfies the requirement. Requirements that are not met will follow the agreed upon change control process and can have impacts on the project schedule, scope, budget, and resource availability. STAGE 2 Current & Future State Analysis Tyler I City ti r c 0 U a W W City of Edmonds, WA Tyler Technologies, Inc. Page / 19 Packet Pg. 67 2.2.a RACI MATRIX KEY: L R = Responsible ) A = Accountable a) J o C = Consulted M � Vl N L I = Informed a O E ° U N j v a °1 x 6 C O 4.0 O cn U OE O _ Q1 fD W 2 = O cn O �p J co co c > N N Q .— _ F L N > W O E: 4D _ j E v y_. Fz N x W V !L �O U C N a-+ .— 73 .E �-.+ N O N W a-+ U C O_� E Q E 0 c U N 4J N O C c6 fl- U W d G U W V) d u_ U (n W Current State process A R I I I C C C C C review Discuss future -state A R C C C C C C C C options Make future -state decisions (non -COTS) C C C C C A R I C C Document anticipated configuration options required to support A R C C C I I I I I future state Inputs City current state documentation Solution Orientation completion Outputs / Acceptance Criteria [only] for Deliverables Deliverables Documentation that describes future -state Delivery of document decisions and configuration options to support future -state decisions. Work package assumptions: ■ City attendees possess sufficient knowledge and authority to make future state decisions. ■ The City is responsible for any documentation of current state business processes. ■ The City can effectively communicate current state processes. 6.2.3 Data Assessment Given the completion of the Current & Future State Analysis, the Data Assessment will provide the implementation team the design for data delivery prior to configuration. The data Assessment will also allow the Tyler and the City teams to identify the data that will be configured within the Tyler System. The team will develop and map out dataset structures to ensure that data is structured in a way that allows maximum utility. The teams will review any existing data publish and metadata standards for the City's current data program to determine any necessary adjustments or configuration needs. Finally, the implementation team develops data workflows to map data from the source system(s) into the Tyler system, discussing any additional data requirements as needed. Objectives: City of Edmonds, WA Tyler Technologies, Inc. v L c 0 0 a LU Page / 20 Packet Pg. 68 ■ Communicate a common understanding of the project goals with respect to data. ■ Ensure complete and accurate source data is available for review/transfer. ■ If source data is a Tyler legacy system, Tyler performs the data mappings. If source data is from a third -party, client is responsible for mapping the data from the source to the Tyler system. ■ Document the data conversion/loading approach. STAGE 2 Data Conversion Assessment Tyler City RACI MATRIX KEY: Lv R = Responsible o A = Accountable T M a C = Consulted In I = Informed v c O U v U L v c v F Q x 0 -O OA C O L h0 O i N v U j O O L �dA CO w ro __ -6 O v) N U Ln O (O v J co ro c (O > N N Q N > h0 E Q) D vaa U o Lu `- o u v" D v U vU +. c N cQa -ua C u X w C m W X C Lu NC Extract Data from Source I C A R Systems Complete Data Analysis/Mapping A R C C I C C I Review and Scrub Source I I I A R C I Data Build/Update Data Conversion Plan R C C C I I Inputs City Source data City Source data Documentation (if available) Outputs / Acceptance Criteria [only] for Deliverables Deliverables Data Conversion Plan built/updated (if City Acceptance of Data Conversion Plan, if applicable} Applicable City acceptance of Solution Design Document Work package assumptions: ■ If the source data is a Tyler system Tyler's Conversion Engineers extract and map the data into the standard Munis conversion format. If the source data is from a third -party the client will provide Tyler with the data in a mutually agreed upon format. ■ Tyler will work with the City representatives to identify business rules before writing the conversion. ■ City subject matter experts and resources most familiar with the current data will be involved in the data conversion planning effort. City of Edmonds, WA Tyler Technologies, Inc. Page / 21 Packet Pg. 69 6.2.4 Conversion Assessment Data Conversions are a major effort in any software implementation. Tyler's conversion tools facilitate the predictable, repeatable conversion process that is necessary to support a successful transition to the Tyler system. The first step in this process is to perform an assessment of the existing ("legacy") system(s), to better understand the source data, risks, and options available. Once the data has been analyzed, the plan for data conversion is completed and communicated to the appropriate stakeholders. Objectives: ■ Communicate a common understanding of the project goals with respect to data. ■ Ensure complete and accurate source data is available for review/transfer. ■ Map the data from the source to the Tyler system. ■ Document the data conversion/loading approach. STAGE 2 Data Conversion Assessment Tyler City RACI MATRIX KEY: L R = Responsible a, o A =Accountable° J C = Consulted I = Informed v O U Q) a) a) a, V) uU C O bU0 O N a) cn O _ s= 40.0 cn c�a co w N rya 2 m O _ cn Q O J ra co c a co QD � 3j Lcco a >_ cc 73 U x a 73 Uu U o a) U a) U c aj 0- a) j c � u d UW W (n d W U (n M W Extract Data from I C A R Source Systems Review and Scrub I I I A R C I Source Data Build/Update Data R C C C I I I Conversion Plan Inputs City Source data City Source data Documentation (if available) Outputs / Acceptance Criteria [only] for Deliverables Deliverables Data Conversion Plan built/updated City Acceptance of Data Conversion Plan, if Applicable Work package assumptions: ■ Tyler will be provided with data from the Legacy system(s) in a mutually agreed upon format. ■ Tyler will work with the City representatives to identify business rules before writing the conversion. ■ City subject matter experts and resources most familiar with the current data will be involved in the data conversion planning effort. City of Edmonds, WA Tyler Technologies, Inc. M L c 0 0 a a LU Page / 22 Packet Pg. 70 6.2.5 Intentionally left blank. 6.2.6 Intentionally left blank. 6.2.7 Control Point 2: Assess & Define Stage Acceptance Acceptance criteria for this Stage includes completion of all criteria listed below. Note: Advancement to the Prepare Solution Stage is dependent upon Tyler's receipt of the Stage Acceptance. Assess & Define Stage Deliverables: ■ Documentation of future state decisions and configuration options to support future state decisions. ■ Modification specification document. ■ Assess & Define Stage Acceptance Criteria: ■ All stage deliverables accepted based on criteria previously defined. ■ Solution Orientation is delivered. ■ Conversion data extracts are received by Tyler. ■ Data conversion plan built. 6.3 Prepare Solution During the Prepare Solution stage, information gathered during the Initiate & Plan and Assess & Define stages will be used to install and configure the Tyler software solution. Software configuration will be validated by the City against future state decisions defined in previous stages and processes refined as needed to ensure business requirements are met. 6.3.1 Initial System Deployment The timely availability of the Tyler Solution is important to a successful Project implementation. The success and timeliness of subsequent work packages are contingent upon the initial system deployment of Tyler Licensed Software on an approved network and infrastructure. Delays in executing this work package can affect the project schedule. Objectives: ■ All licensed software is installed and operational. ■ The City can access the software. STAGE 3 Initial System Deployment (Hosted/SaaS)* Tyl City City of Edmonds, WA Tyler Technologies, Inc. Page / 23 Packet Pg. 71 2.2.a t RACI MATRIX KEY: L R = Responsible o A = Accountable Q) J a C = Consulted � VI In � L I= Informed v O v °1 Q) Q Ln C O h0 O N '� cn C O s= bA «3 o v ) j C M Q O — M cn _ U L O Cz —J ca ro C _ a)QJ a.., X U c6 U a)> N .— dA a-, � O 41 ++ E N U N O_ O cL O U a)N N O CM Q _0 U W E d 0 cc G U LJJ Ln 0-U-U V) L U Prepare hosted 0 A R I C environment Install Licensed Software with Initial Database on Server(s) for A R I C Included Environments Install Licensed Software on City Devices (if I C A R applicable) Tyler System Administration Training (if A R I C applicable) Outputs / Deliverables Acceptance Criteria [only] for Deliverables Licensed Software is Installed on the Server(s) Software is accessible Licensed Software is Installed on City Devices (if applicable) Software is accessible Installation Checklist/System Document System meets prescribed checklist Infrastructure Design Document (C&J — If Applicable) Work package assumptions: ■ The most current available version of the Tyler Licensed Software will be installed. ■ The City will provide network access for Tyler modules, printers, and Internet access to all applicable City and Tyler Project staff. 6.3.2 Configuration The purpose of Configuration is to prepare the software product for validation. Tyler staff collaborates with the City to complete software configuration based on the outputs of the future state analysis performed during the Assess and Define Stage. The City collaborates with Tyler staff iteratively to validate software configuration. City of Edmonds, WA Tyler Technologies, Inc. v �a c 0 0 a w Page / 24 Packet Pg. 72 Objectives: Software is ready for validation. Educate the City Power User how to configure and maintain software. Prepare standard interfaces for process validation (if applicable). STAGE 3 Configuration Tyler City RACI MATRIX KEY: v R = Responsible o A = Accountable ° J C = Consulted c a) c I =Informed bb L O U U > Q) L O a) O N fl- X -6 C O Q) h0 O U N U — IQ) 0 E dD(IDa)J U C w -6 (0 .0 (1) V1 U > Q V1 U cns (cc0 G (cc6 G Q) J > Q) E (1) E Q X (0 `) (0 U Q) N > 'Z1 bA C G — C O v U E W M U N Q U Q) � v Q w ca C U +' v Z5 N N U Ql 'p +_ U C C (0 fl- a) U -0 C U X w E L a E v U X w �, V) L a � w L U V) C w v Conduct configuration training A R I C C Complete Tyler configuration tasks A R I I I (where applicable) Complete City configuration tasks I C A R C (where applicable) Standard interfaces configuration and A R C I C C C training (if applicable) Updates to Solution C C A R C C Validation testing plan Inputs Documentation that describes future state decisions and configuration options to support future state decisions. Outputs / Deliverables Acceptance Criteria [only] for Deliverables Configured System Work package assumptions: ■ Tyler provides guidance for configuration options available within the Tyler software. The City is responsible for making decisions when multiple options are available. 6.3.3 Process Refinement Tyler will educate the City users on how to execute processes in the system to prepare them for the validation of the software. The City collaborates with Tyler staff iteratively to validate software configuration options to support future state. City of Edmonds, WA Tyler Technologies, Inc. V L C O 0 teaN/ W Page / 25 Packet Pg. 73 2.2.a Objectives: • Ensure that the City understands future state processes and how to execute the processes in the software. ■ Refine each process to meet the business requirements. ■ Validate standard interfaces, where applicable. ■ Validate forms and reports, where applicable. STAGE 3 Process Refinement Tyler City RACI MATRIX KEY: v R = Responsible o A = Accountable v a C = Consulted I = Informed v f0 0 o U N ` i L O a1 a, Q v E N x -6 4.0 C (0 O .--� L on f0Cz O '— N N j L N � L f0 „� v � ++ __ (0 i � O cn U cn O U J t0 r0 c +.+ C a-+ O v U i U v Q c.> v v w « p C U +-+ C D c.> p — U C OA -0 -6 C V X w a .N U X w cn D u_ L U 7 v) N C w N Conduct process A R I C I C training Confirm process 1 C A R C I C decisions Test configuration I C A R C Refine configuration (City I C A R C Responsible) Refine configuration (Tyler A R I I I Responsible) Validate interface I C C A R C C process and results Update City - specific process I C A R C documentation (if applicable) Updates to Solution Validation C C A R C C testing plan Inputs Initial Configuration Documentation that describes future state decisions and configuration options to support future state decisions. Solution validation test plan Outputs / Acceptance Criteria [only] for Deliverables Deliverables Updated solution validation test plan Completed City -specific process documentation (completed by City) City of Edmonds, WA Tyler Technologies, Inc. Page / 26 Packet Pg. 74 Work package assumptions: ■ None 6.3.4 Conversion Delivery The purpose of this task is to transition the City's data from their source ("legacy') system(s) to the Tyler system(s). The data will need to be mapped from the legacy system into the new Tyler system format. A well - executed data conversion is key to a successful cutover to the new system(s). With guidance from Tyler, the City will review specific data elements within the system and identify / report discrepancies. Iteratively, Tyler will collaborate with the City to address conversion discrepancies. This process will allow for clean, reconciled data to transfer from the source system(s) to the Tyler system(s). Reference Conversion Appendix for additional detail. L w+ i O V IL for Testing rLoad Data', O (N • • CD write & Run • • • •.Reviews _ ConversionConversion D. • • Program• •• Correct Errors Objectives: ■ Data is ready for production (Conversion). STAGE 3 Data Delivery & Conversion Tyler City RACI MATRIX v KEY: -0 a R = Responsible ° ) A = Accountable M C =Consulted i O U a +; E x -0 I=Informed cm o 0 0 /) O M t LU a = -0 a + ro + Q O Ln t0 � U Q E O o M N J M co ra c o —J > N U N W M > +� OA C U bA U S= i 73 N Q .Q Q --� U �, � N p C (O W Q- C U W D cc73 G U W (j L.L U (n W Provide data crosswalks/code A C R I I I mapping tool City of Edmonds, WA Tyler Technologies, Inc. Page / 27 Packet Pg. 75 2.2.a Populate data crosswalks/code I C C A R C mapping tool Iterations: Conversion A C R I I Development Iterations: Deliver A R I I I converted data Iterations: Proof/Review data and C C C A R C C reconcile to source system Inputs Data Conversion Plan Configuration Outputs / Acceptance Criteria [only] for Deliverables Deliverables Code Mapping Complete / Validated Conversion Iterations / Reviews Complete Conversion complete, verified, and ready for final pass Work package assumptions: ■ The City will provide a single file layout per source system as identified in the investment summary. ■ The City subject matter experts and resources most familiar with the current data will be involved in the data conversion effort. ■ The City project team will be responsible for completing the code mapping activity, with assistance from Tyler. 6.3.5 Intentionally left blank. 6.3.6 Intentionally left blank. 6.3.7 Control Point 3: Prepare Solution Stage Acceptance Acceptance criteria for this Stage includes all criteria listed below in each Work Package. Note: Advancement to the Production Readiness Stage is dependent upon Tyler's receipt of the Stage Acceptance. Prepare Solution Stage Deliverables: ■ Licensed software is installed. ■ Installation checklist/system document. ■ Conversion iterations and reviews complete. Prepare Solution Stage Acceptance Criteria: City of Edmonds, WA Tyler Technologies, Inc. Page / 28 Packet Pg. 76 ■ All stage deliverables accepted based on criteria previously defined. ■ Software is configured. ■ Solution validation test plan has been reviewed and updated if needed. 6.4 Production Readiness Activities in the Production Readiness stage will prepare the City team for go -live through solution validation, the development of a detailed go -live plan and end user training. A readiness assessment will be conducted with the City to review the status of the project and the organizations readiness for go -live. 6.4.1 Solution Validation Solution Validation is the end -to -end software testing activity to ensure that the City verifies all aspects of the Project (hardware, configuration, business processes, etc.) are functioning properly, and validates that all features and functions per the contract have been deployed for system use. Objectives: ■ Validate that the solution performs as indicated in the solution validation plan. ■ Ensure the City organization is ready to move forward with go -live and training (if applicable). STAGE 4 Solution Validation Tyler City RACI MATRIX KEY: Lv R = Responsible o A = Accountable T v C = Consulted In I = Informed a, C O W U L L O v N Q X -0 OA C O ''Z L v on C O '.-+ N N a1 U j O +� E L W Inro (O W v -6 (6 f0 O L v� N U O J to ro c > } v E } v E 0 X o U r U v cn > } ao C +� O v E i v N `6 U U Q U v '0 Q Lu +�-+ `� p C U +-+ C N 41 v U N p +� U C t1.0 C fn N (6 CL u -6 C U X w E L a E ._ U X w }, Lo L u- U v) v c Lu v Update Solution Validation plan A R C C C C Update test scripts (as applicable) C C C A R C Perform testing C C C A R C Document issues from C C C A R C testing Perform required follow- A R C C C C up on issues Inputs Solution Validation plan Completed work product from prior stages (configuration, business process, etc.) Outputs / Deliverables Acceptance Criteria [only] for Deliverables Solution Validation Report City updates report with testing results City of Edmonds, WA Tyler Technologies, Inc. Page / 29 Packet Pg. 77 Work package assumptions: • Designated testing environment has been established. ■ Testing includes current phase activities or deliverables only. 6.4.2 Go -Live Readiness Tyler and the City will ensure that all requirements defined in Project planning have been completed and the Go -Live event can occur, as planned. A go -live readiness assessment will be completed identifying risks or actions items to be addressed to ensure the City has considered its ability to successfully Go -Live. Issues and concerns will be discussed, and mitigation options documented. Tyler and the City will jointly agree to move forward with transition to production. Expectations for final preparation and critical dates for the weeks leading into and during the Go -Live week will be planned in detail and communicated to Project teams. Objectives: ■ Action plan for go -live established. ■ Assess go -live readiness. • Stakeholders informed of go -live activities. STAGE 4 Go -Live Readiness Tyler City RACI MATRIX KEY: v R = Responsible o A =Accountable J C = Consulted c I = Informed v C O U U U �, L O N N C E Q x X � -6 C10 C 0 O i N 0 O '++ ) N v U i 1z O •+�_-+ E i dA u) f0 10LO (0 W N -6 (0 ++ (0 M ��.. O N U U c/1 E O (0 v J Cz t0 ca > + v E v E a X o U M U v v, > +, on C O v E L v ns U Q U N � U Q W +M.+ `,ti C U a--+ 4J I N N U N O a-+ U C hp C CO 0 fl- -6 C V X W E d E v . U X W a-+ (n i d L.L L U � (n N C W N Perform Readiness Assessment I A R C C I C I I I I I I Conduct Go -Live planning A R C C C C C C C session Order peripheral hardware (if applicable) IN I A R C Confirm procedures for Go -Live issue reporting & A R I I I I C C I I I I I resolution Develop Go -Live checklist A R C C C C I C C Final system infrastructure review A R C C (where applicable) Inputs Future state decisions Go -live checklist Outputs / Deliverables City of Edmonds, WA Tyler Technologies, Inc. Acceptance Criteria [only] for Deliverables Page / 30 Packet Pg. 78 Updated go -live checklist Updated Action plan and Checklist for go -live delivered to the City Work package assumptions: ■ None 6.4.3 End User Training End User Training is a critical part of any successful software implementation. Using a training plan previously reviewed and approved, the Project team will organize and initiate the training activities. Train the Trainer: Tyler provides one occurrence of each scheduled training or implementation topic. City users who attended the Tyler sessions may train additional users. Additional Tyler led sessions may be contracted at the applicable rates for training. Tyler will provide standard application documentation for the general use of the software. It is not Tyler's responsibility to develop City specific business process documentation. City -led training labs using City specific business process documentation if created by the City can be added to the regular training curriculum, enhancing the training experiences of the end users. Objectives: ■ End users are trained on how to use the software prior to go -live. ■ The City is prepared for on -going training and support of the application. STAGE End User Training Tyler City RACI MATRIX KEY: R = Responsible o A = Accountable T v C = Consulted In I =Informed v ° U v `U L O v a, v a, x -p 4.0 C 0 O L h0 0 O i' N OJ U j N O F L dA ,n f0 w -6 (0 .0 N i U n3 2 Fu f0 c0 J 70 j 41 }, N Q X m U f0 U N V1}, > h0 ++ c O v U i a1 U_ D v N Q U OJ '0 N Q w +�-+ `,� p C U a-+ N D 0) v U O1 p +.r U c 0..0 C to N - c6 Q � _0 C U X w L a .— U X w a--' V) L w L U 7 v) U C w N Update training plan A R C C I C End User training (Tyler- led) A R C C C I C C C Train -the -trainer A R C C C I C End User training (City- led) C C A R I C C C Inputs Training Plan List of End Users and their Roles / Job Duties Configured Tyler System Outputs / Deliverables Acceptance Criteria [only] for Deliverables End User Training City signoff that training was delivered City of Edmonds, WA Tyler Technologies, Inc. Page / 31 Packet Pg. 79 Work package assumptions: ■ The City project team will work with Tyler to jointly develop a training curriculum that identifies the size, makeup, and subject -area of each of the training classes. ■ Tyler will work with the City as much as possible to provide end -user training in a manner that minimizes the impact to the daily operations of City departments. ■ The City will be responsible for training new users after go -live (exception —previously planned or regular training offerings by Tyler). 6.4.4 Control Point 4: Production Readiness Stage Acceptance Acceptance criteria for this stage includes all criteria listed below. Advancement to the Production stage is dependent upon Tyler's receipt of the stage acceptance. Production Readiness stage deliverables: Solution Validation Report. Update go -live action plan and/or checklist. End user training. Production Readiness stage acceptance criteria: All stage deliverables accepted based on criteria previously defined. Go -Live planning session conducted. 6.5 Production Following end user training the production system will be fully enabled and made ready for daily operational use as of the scheduled date. Tyler and the City will follow the comprehensive action plan laid out during Go - Live Readiness to support go -live activities and minimize risk to the Project during go -live. Following go -live, Tyler will work with the City to verify that implementation work is concluded, post go -live activities are scheduled, and the transition to Client Services is complete for long-term operations and maintenance of the Tyler software. 6.5.1 Go -Live Following the action plan for Go -Live, defined in the Production Readiness stage, the City and Tyler will complete work assigned to prepare for Go -Live. The City provides final data extract and Reports from the Legacy System for data conversion and Tyler executes final conversion iteration, if applicable. If defined in the action plan, the City manually enters any data added to the Legacy System after final data extract into the Tyler system. Tyler staff collaborates with the City during Go -Live activities. The City transitions to Tyler software for day -to day business processing. Some training topics are better addressed following Go -Live when additional data is available in the system or based on timing of applicable business processes and will be scheduled following Go -Live per the Project Schedule. City of Edmonds, WA Tyler Technologies, Inc. Page / 32 Packet Pg. 80 Objectives: Execute day to day processing in Tyler software. - City data available in Production environment. STAGE 5 Go -Live Tyler City RACI MATRIX KEY: `v R = Responsible o A = Accountable T M a C = Consulted In c U O0 a, U v c a1I=Informed xQ 0 -O OcA 0i O O aJ Fv) L dA u) CO wro "6 O v) u O J co ro c > .Z a! E �, a! E 0 X U fB U v Ln > "Z O — c O cc G (U E i ( N (O U_ D Q U v 0 Q Lu `- �O u c v D v (U U v 'p +. U c C10 c CO N ca fl- -p C u X w a m a) .— U X w LO L c w t U z3 n v c w v Provide final source data extract, if applicable C C A R Final source data pushed into production environment, if A C R I C C C applicable Proof final converted data, if applicable C C C A R C Complete Go -Live activities as defined in C C C A R C I C the Go -Live action plan Provide Go -Live 7 A R L C C I C C � C C assistance Inputs Comprehensive Action Plan for Go -Live Final source data (if applicable) Outputs / Acceptance Criteria [only] for Deliverables Deliverables Data is available in production environment City confirms data is available in production environment Work package assumptions: ■ The City will complete activities documented in the action plan for Go -Live as scheduled. ■ External stakeholders will be available to assist in supporting the interfaces associated with the Go - Live live process. ■ The City business processes required for Go -Live are fully documented and tested. ■ The City Project team and subject matter experts are the primary point of contact for the end users when reporting issues during Go -Live. ■ The City Project Team and Power User's provide business process context to the end users during Go - Live. ■ The Tyler Go -Live support team is available to consult with the City teams as necessary. City of Edmonds, WA Tyler Technologies, Inc. Page / 33 Packet Pg. 81 ■ The Tyler Go -Live support team provides standard functionality responses, which may not be tailored to the local business processes 6.5.2 Transition to Client Services This work package signals the conclusion of implementation activities for the Phase or Project with the exception of agreed -upon post Go -Live activities. The Tyler project manager(s) schedules a formal transition of the City onto the Tyler Client Services team, who provides the City with assistance following Go -Live, officially transitioning the City to operations and maintenance. Objectives: ■ Ensure no critical issues remain for the project teams to resolve. • Confirm proper knowledge transfer to the City teams for key processes and subject areas. STAGE 5 Transition to Client Services Tyler City RACI MATRIX KEY: v R = Responsible o A = Accountable T M C = Consulted In I = Informed v c O U Q) U L v c v Q x 0 '6 OA C 0 i l].0 0 O ) (n> v U vl O E i dA u) f0 W -6 i O N U cn O J to c0 > }, N �, N Q X U U N Ln > "Z h0 +� O v E Q) ) N V v N Q '0 Q) Q w p •� U +� N v v N •p 'U c OA co N -0 i fl- _0 •C V w a U w ci u_ U v) w Transfer City to Client Services and review issue reporting and I I A I I R I I C C C resolution processes Review long term maintenance and A R C C C continuous improvement IN Inputs I Open item/issues List Outputs / Deliverables Acceptance Criteria [only] for Deliverables Client Services Support Document Work package assumptions: • No material project issues remain without assignment and plan. City of Edmonds, WA Tyler Technologies, Inc. r �a c 0 0 a a LU Page / 34 Packet Pg. 82 6.5.3 Post Go -Live Activities Some implementation activities are provided post -production due to the timing of business processes, the requirement of actual production data to complete the activities, or the requirement of the system being used in a live production state. Objectives: ■ Schedule activities that are planned for after Go -Live. ■ Ensure issues have been resolved or are planned for resolution before phase or project close. STAGE 5 Post Go -Live Activities Tyler City RACI MATRIX KEY: L a) R = Responsible A = Accountable Q) J o C = Consulted I = Informed v ° a a) C O lao O to >cn O >= CLO ccu N n N 2 _0 O ro O cn uLn .L O n3 � ncc3 c�a coo c Q) > a) G v Q x (�6 V c6 U a) v) > — on G +� C a) cm G v _ m U 73 v Q U � Q W 0 ua! a-+ a--� aJ V p _O C l].0 ca V i Q C U W E d o cc G U W L d u_ U (n W a) Schedule contracted activities that are planned for delivery A R C C C C I C C I C C after go -live Determine resolution plan in preparation for phase or project close A R C C C I C C I C out Inputs I List of post Go -Live activities Outputs / Acceptance Criteria [only] for Deliverables Deliverables Updated issues log Work package assumptions: ■ System is being used in a live production state. 6.5.4 Control Point 5: Production Stage Acceptance Acceptance criteria for this Stage includes completion of all criteria listed below: ■ Advancement to the Close stage is not dependent upon Tyler's receipt of this Stage Acceptance. ■ Converted data is available in production environment. Production Stage Acceptance Criteria: City of Edmonds, WA Tyler Technologies, Inc. Page / 35 Packet Pg. 83 ■ All stage deliverables accepted based on criteria previously defined. ■ Go -Live activities defined in the Go -Live action plan completed. ■ Client services support document is provided. 6.6 Close The Close stage signifies full implementation of all products purchased and encompassed in the Phase or Project. The City transitions to the next cycle of their relationship with Tyler (next Phase of implementation or long-term relationship with Tyler Client Services). 6.6.1 Phase Closeout This work package represents Phase completion and signals the conclusion of implementation activities for the Phase. The Tyler Client Services team will assume ongoing support of the City for systems implemented in the Phase. M L C Objectives: V a ■ Agreement from Tyler and the City teams that activities within this phase are complete. w STAGE 6 Phase Close Out Tyler City RACI MATRIX KEY: `v R = Responsible o A =Accountable T J C = Consulted I = Informed v c O U> v U L v c v Q x -O OA C 0 O i h0 0 O ) (n v U � � O E do m W W -6 (6 J E E Q X .0 i c > U> W EvU Q 4J 0 Q +�-+ �O U C N v v N p U C C CO ca fl- -p _ U X w E L a E .— U X w a-+ Lo i u- L U 7 cn C Lu N Reconcile project budget and status of contract A R I I C Deliverables Hold post phase review A R C C C C C C C C C meeting Release phase - dependent Tyler project A R I I resources Participants Tyler City Project Leadership Project Manager Project Manager Project Sponsor(s) Implementation Consultants Functional Leads, Power Users, Technical Leads Technical Consultants (Conversion, Deployment, Development) Client Services City of Edmonds, WA Tyler Technologies, Inc. Page / 36 Packet Pg. 84 Inputs Contract Statement of Work Project artifacts Outputs / Deliverables Acceptance Criteria [only] for Deliverables Final action plan (for outstanding items) Reconciliation Report Post Phase Review Work package assumptions: ■ Tyler deliverables for the phase have been completed. 6.6.2 Project Closeout Completion of this work package signifies final acceptance and formal closing of the Project. At this time the City may choose to begin working with Client Services to look at continuous improvement Projects, building on the completed solution. Objectives: ■ Confirm no critical issues remain for the project teams to resolve. ■ Determine proper knowledge transfer to the City teams for key processes and subject areas has occurred. ■ Verify all deliverables included in the Agreement are delivered. STAGE 6 Project Close Out Tyler City RACI MATRIX KEY: R = Responsible o A = Accountable T v C = Consulted In I =Informed v ° v `U L v a, Q) a, C 0 O h0 0 O N U j U') N O dA f0 w -6 CL f0 c0 J > 4J E }, N E Q X m U (0 U O1 cn > }, U M cz ++ O N U E i (U N U_ v '0 m O N U v U Cf0 -0 C(0L -6C U XQ E a E U n ww N Conduct post project A R C C C C C C C C C review Deliver post project report to City and Tyler I A R I I C leadership Release Tyler project A R I I resources Inputs Contract Statement of Work City of Edmonds, WA Tyler Technologies, Inc. Page / 37 Packet Pg. 85 Outputs / Acceptance Criteria [only] for Deliverables Deliverables Post Project Report City acceptance; Completed report indicating all project Deliverables and milestones have been completed Work package assumptions: ■ All project implementation activities have been completed and approved. ■ No critical project issues remain that have not been documented and assigned. ■ Final project budget has been reconciled and invoiced. ■ All Tyler deliverables have been completed. 6.6.3 Control Point 6: Close Stage Acceptance Acceptance criteria for this Stage includes completion of all criteria listed below. Close Stage Deliverables: ■ Post Project Report. Close Stage Acceptance Criteria: ■ Completed report indicating all Project deliverables and milestones have been completed. 7. General Assumptions Tyler and the City will use this SOW as a guide for managing the implementation of the Tyler Project as provided and described in the Agreement. There are a few assumptions which, when acknowledged and adhered to, will support a successful implementation. Assumptions related to specific work packages are documented throughout the SOW. Included here are general assumptions which should be considered throughout the overall implementation process. 7.1 Project ■ Project activities will begin after the Agreement has been fully executed. ■ The City Project Team will complete their necessary assignments in a mutually agreed upon timeframe to meet the scheduled go -live date, as outlined in the Project Schedule. ■ Sessions will be scheduled and conducted at a mutually agreeable time. ■ Additional services, software modules and modifications not described in the SOW or Agreement will be considered a change to this Project and will require a Change Request Form as previously referenced in the definition of the Change Control Process. ■ Tyler will provide a written agenda and notice of any prerequisites to the City project manager(s) ten (10) business days or as otherwise mutually agreed upon time frame prior to any scheduled on -site or remote sessions, as applicable. ■ Tyler will provide guidance for configuration and processing options available within the Tyler software. If multiple options are presented by Tyler, the City is responsible for making decisions based on the options available. 0 U a w City of Edmonds, WA Tyler Technologies, Inc. Page / 38 Packet Pg. 86 ■ Implementation of new software may require changes to existing processes, both business and technical, requiring the City to make process changes. ■ The City is responsible for defining, documenting, and implementing their policies that result from any business process changes. 7.2 Organizational Change Management Unless otherwise contracted by Tyler, City is responsible for managing Organizational Change. Impacted City resources will need consistent coaching and reassurance from their leadership team to embrace and accept the changes being imposed by the move to new software. An important part of change is ensuring that impacted City resources understand the value of the change, and why they are being asked to change. 7.3 Resources and Scheduling ■ City resources will participate in scheduled activities as assigned in the Project Schedule. r ■ The City team will complete prerequisites prior to applicable scheduled activities. Failure to do so c may affect the schedule. v IL ■ Tyler and the City will provide resources to support the efforts to complete the Project as scheduled and within the constraints of the Project budget. w Iq ■ Abbreviated timelines and overlapped Phases require sufficient resources to complete all required N work as scheduled. ■ Changes to the Project Schedule, availability of resources or changes in Scope will be requested through a Change Request. Impacts to the triple constraints (scope, budget, and schedule) will be assessed and documented as part of the change control process. ■ The City will ensure assigned resources will follow the change control process and possess the required business knowledge to complete their assigned tasks successfully. Should there be a change in resources, the replacement resource should have a comparable level of availability, change control process buy -in, and knowledge. ■ The City makes timely Project related decisions to achieve scheduled due dates on tasks and prepare for subsequent training sessions. Failure to do so may affect the schedule, as each analysis and implementation session is dependent on the decisions made in prior sessions. ■ The City will respond to information requests in a comprehensive and timely manner, in accordance with the Project Schedule. ■ The City will provide adequate meeting space or facilities, including appropriate system connectivity, to the project teams including Tyler team members. ■ For on -site visits, Tyler will identify a travel schedule that balances the needs of the project and the employee. 7.4 Data ■ Data will be converted as provided and Tyler will not create data that does not exist. ■ The City is responsible for the quality of legacy data and for cleaning or scrubbing erroneous legacy data. ■ Tyler will work closely with the City representatives to identify business rules before writing the conversion. The City must confirm that all known data mapping from source to target have been identified and documented before Tyler writes the conversion. ■ All in -scope source data is in data extract(s). ■ Each legacy system data file submitted for conversion includes all associated records in a single approved file layout. City of Edmonds, WA Tyler Technologies, Inc. Page / 39 Packet Pg. 87 ■ The City will provide the legacy system data extract in the same format for each iteration unless changes are mutually agreed upon in advance. If not, negative impacts to the schedule, budget and resource availability may occur and/or data in the new system may be incorrect. ■ The City Project Team is responsible for reviewing the converted data and reporting issues during each iteration, with assistance from Tyler. ■ The City is responsible for providing or entering test data (e.g., data for training, testing interfaces, etc.) 7.5 Facilities ■ The City will provide dedicated space for Tyler staff to work with City resources for both on -site and remote sessions. If Phases overlap, City will provide multiple training facilities to allow for independent sessions scheduling without conflict. ■ The City will provide staff with a location to practice what they have learned without distraction., c� L w+ i O V a w City of Edmonds, WA Tyler Technologies, Inc. Page / 40 Packet Pg. 88 8. Glossary .r. • or I erm�- Acceptance Confirming that the output or deliverable is suitable and conforms to the agreed upon criteria. Accountable The one who ultimately ensures a task or deliverable is completed; the one who ensures the prerequisites of the task are met and who delegates the work to those responsible. [Also see Application A computer program designed to perform a group of coordinated functions, tasks, or activities for the benefit of the user. Application Programming Interface (API) A defined set of tools/methods to pass data to and received data from Tyler software products Agreement This executed legal contract that defines the products and services to be implemented or performed. The practices, policy, procedure, guidelines, or functionality that Business Process the client uses to complete a specific job function. A specification document used to describe Client requirements Business Requirements Document for contracted software modifications. Change Request A form used as part of the Change Control process whereby changes in the scope of work, timeline, resources, and/or budget are documented and agreed upon by participating parties. Guides how we prepare, equip and support individuals to Change Management successfully adopt change in order to drive organizational success & outcomes Code Mapping [where applicable] An activity that occurs during the data conversion process whereby users equate data (field level) values from the old system to the values available in the new system. These may be one to one or many to one. Example: Old System [Field = eye color] [values = BL, Blu, Blue] maps to New Tyler System [Field = Eye Color] [value = Blue]. Consulted _ Those whose opinions are sought, typically subject matter experts, and with whom there is two-way communication. [Also see RACI] This activity occurs at the end of each stage and serves as a Control Point formal and intentional opportunity to review stage deliverables and required acceptance criteria for the stage have been met. Data Mapping [where applicable] The activity determining and documenting where data from the legacy system will be placed in the new system; this typically involves prior data analysis to understand how the data is currently used in the legacy system and how it will be used in the new system. Deliverable A verifiable document or service produced as part of the Project, as defined in the work packages. Go -Live The point in time when the Client is using the Tyler software to conduct daily operations in Production. Informed Those who are kept up-to-date on progress, often only on completion of the task or deliverable, and with whom there is just one-way communication. [Also see RACI] City of Edmonds, WA Tyler Technologies, Inc. Page / 41 Packet Pg. 89 Infrastructure The composite hardware, network resources and services required for the existence, operation, and management of the Tyler software. Interface A connection to and potential exchange of data with an external system or application. Interfaces may be one way, with data leaving the Tyler system to another system or data entering Tyler from another system, or they may be bi-directional with data both leaving and entering Tyler and another system. Integration A standard exchange or sharing of common data within the Tyler system or between Tyler applications Legacy System The software from which a client is converting. Modification Custom enhancement of Tyler's existing software to provide features or functions to meet individual client requirements documented within the scope of the Agreement. On -site Indicates the work location is at one or more of the client's physical office or work environments. Organizational Change The process of changing an organization's strategies, processes, procedures, technologies, and culture, as well as the effect of such changes on the organization. Output A product, result or service generated by a process. Peripheral devices An auxiliary device that connects to and works with the computer in some way. Some examples: scanner, digital camera, printer. Phase A portion of the Project in which specific set of related applications are typically implemented. Phases each have an independent start, Go -Live and closure dates but use the same Implementation Plans as other Phases of the Project. Phases may overlap or be sequential and may have different Tyler resources assigned. Project The delivery of the software and services per the agreement and the Statement of Work. A Project may be broken down into multiple Phases. RACI A matrix describing the level of participation by various roles in completing tasks or Deliverables for a Project or process. Individuals or groups are assigned one and only one of the following roles for a given task: Responsible (R), Accountable (A), Consulted (C), or Informed (1). Remote Indicates the work location is at one or more of Tyler's physical offices or work environments. Responsible Those who ensure a task is completed, either by themselves or delegating to another resource. [Also see RACI] Scope Products and services that are included in the Agreement. City of Edmonds, WA Tyler Technologies, Inc. Page / 42 r �a L c 0 V a a w v N co N O c 0 �a L L co �a R co Q N c 0 E w c d E s ca Q Packet Pg. 90 Solution The implementation of the contracted software product(s) resulting in the connected system allowing users to meet Project goals and gain anticipated efficiencies. Stage The top-level components of the WBS. Each Stage is repeated for individual Phases of the Project. Standard Software functionality that is included in the base software (off - the -shelf) package; is not customized or modified. Statement of Work (SOW) Document which will provide supporting detail to the Agreement defining Project -specific activities, services, and Deliverables. System The collective group of software and hardware that is used by the organization to conduct business. Test Scripts The steps or sequence of steps that will be used to validate or confirm a piece of functionality, configuration, enhancement, or Use Case Scenario. Training Plan Document(s) that indicate how and when users of the system will be trained relevant to their role in the implementation or use of the system. Validation (or to validate) The process of testing and approving that a specific Deliverable, process, program, or product is working as expected. Work Breakdown Structure (WBS) A hierarchical representation of a Project or Phase broken down into smaller, more manageable components. Work Package A group of related tasks within a project. City of Edmonds, WA Tyler Technologies, Inc. Page / 43 r v L c O V a a w v N <O N O c O �a L L co R co Q N C O E W C N E t v to Q Packet Pg. 91 2.2.a Part 4: Appendices 9. Conversion 9.1 Enterprise ERP Conversion Summary 9.1.1 Accounting 9.1.1.1 Accounting - Actuals ■ Summary account balances ■ Up to 5 years 9.1.1.2 Accounting - Budgets ■ Original budget, budget adjustments, revised budget summaries for accounts ■ Up to 5 years 9.1.2 Accounts Payable 9.1.2.1 Vendors ■ Vendor Master file including names, addresses, SSN/FID, contacts, phone numbers ■ Multiple remittance addresses ■ Year-to-date 1099 amounts 9.1.2.2 Accounts Payable - Checks ■ Check header data including vendor, warrant, check number, check date, overall check amount, GL cash account and clearing information ■ Check detail data including related document and invoice numbers for each check ■ Up to 5 years 9.1.2.3 Accounts Payable - Invoices ■ Invoice header data containing general information for the invoice ■ Invoice detail data containing line -specific information for the invoice ■ Up to 5 years 9.1.3 Project Accounting 9.1.3.1 Project Accounting Master Tables ■ Segments, account strings and fund string allocation table ■ Requires the use of a Tyler provided (Chart of Accounts) spreadsheet for design and entry of the data to be converted 9.1.3.2 Project Accounting - Actuals ■ Summary project ledger string balances. If linking to GL, must be converted at the same time. c� L c 0 U IL W w N N W O _ 0 ca aM 2 U) M c� a vi 0 E w _ a� E s ca a City of Edmonds, WA Tyler Technologies, Inc. Page / 44 Packet Pg. 92 ■ Up to 3 years 9.1.3.3 Project Accounting — Budget ■ Original project ledger budget amounts. If linking to GL, must be converted at the same time. ■ Up to 3 years 9.1.4 Purchase Orders ■ Open purchase orders header data including vendor, buyer, date, accounting information, etc. ■ Open purchase orders detail data including line -item descriptions, quantities, amounts, etc. ■ Closed purchase orders detail data, up to 5 years, including line -item descriptions, quantities, amounts, etc. 9.1.5 Human Resources Management 9.1.5.1 HRM Employee Master Information ■ Payroll Employee Master data including data such as name, address, SSN, legacy employee ID, date of birth, hire date, activity status (such as active/inactive), leave/termination code and date, phone(s), e- address, marital status, gender, race, personnel status (such as full-time, part-time, etc.), highest degree, advice -delivery (print/email/both) and check location, plus primary group, job, location, and account information 9.1.5.2 Accumulators ■ YTD, QTD, MTD amounts for employee pay and deductions ■ Needed for mid -calendar -year go -live ■ May not be needed if converting earnings/deductions history ■ Up to 5 years ■ Accumulators are converted with check history and earning/deduction history as a default. No accumulator files are necessary to submit when converting history. 9.1.5.3 Check History ■ Up to 5 years, additional years must be quoted. We convert amounts for earnings and deductions in employee check history, check number and date. 9.1.5.4 Earning/Deduction Hist. ■ Up to 5 years, additional years must be quoted. Earning and deduction history broken down my individual codes (earnings and deduction) and amounts per pay period, the detail of these lines, sums the check history in opt 4. 9.1.5.5 Personnel Action History ■ A variety of Personnel actions, such as job or salary changes and dates these events occurred. ■ Up to 5 years City of Edmonds, WA Tyler Technologies, Inc. Page / 45 Packet Pg. 93 9.1.5.6 Certifications ■ Certification area and certification type codes, certification number and effective date, expiration date, and required -by date, codes for certification level and subjects 9.1.5.7 Education ■ Codes, for institution, type of degree, and area(s) of study 9.1.6 General Billing 9.1.6.1 Customer Master Files ■ Customer information 9.1.6.2 General Billing — Recurring Invoices ■ General Billing Invoices that are sent on a regular basis ■ Header records with general information about the invoice ■ Detail records with line -specific information 9.1.6.3 General Billing — Bills ■ 5 years of open and closed invoices ■ General Ledger information so open invoices can be processed in Enterprise ERP 9.1.7 Utility Billing 9.1.7.1 Account Information ■ Account Master data including previous and current customer owner information- address info, phone, fax, SSN number, FID number, account status, parcel number, location street, apartment, city, state, zip, book number, read sequence, account start and end date, EFT bank information 9.1.7.2 Services ■ Current service codes, service status, type, factor, condo units, bill cycle codes, , current deposits held on account including unpaid deposit amounts, winter usage, current meter(s) associated with service, meter readings( current and previous), meter usage (current and previous) and sales tax information. 9.1.7.3 Assessments ■ Assessments are improvement costs that are spread across to property owner ■ Utility Billing conversion option 4 (balance forward AR) must also be purchased in order to convert assessments 9.1.7.4 Consumption History ■ History of meter readings, usage, read dates, usage days, bill amounts, bill dates, read codes ■ Up to 5 years City of Edmonds, WA Tyler Technologies, Inc. Page / 46 Packet Pg. 94 9.1.7.5 Balance Forward AR ■ Account balance forward information converted as total amount due. If the client's business practices require current due and past due bills this can be broken into three balance forward bills(current balance due and up to two past due balance bills).These can be converted to one balance forward charge code or separate balance forward charge codes, and converted to the account/customer, if the client's legacy data contains this information. ■ If late penalties will be applied in Enterprise ERP after the conversion, balance forward amounts must be converted by charge code 9.1.7.6 Work Orders Work Orders data associated with accounts, including meter repairs, checks for leaky meter, reread a meter due to high reading 9.1.7.7 Backflow ■ Account information, backflow device information, backflow type, and backflow violations 9.1.7.8 Budget Billing Converts information for budget average billing by account, customer and service. Legacy data must include: calculated budget amount by service; number of periods remaining until plan renews; budget plan balance/credit amount, broken out by service/customer; additional amortized amount by service. 9.1.7.9 Flat Inventory/Containers ■ Inventory for non -metered items tied to recurring service billing — flat rate is tied to inventory item(s)/item type(s) (vs consumption/usage). Trash/recycling containers, dumpsters, roll off containers, light poles, cable/internet equipment. c� r c 0 U IL w City of Edmonds, WA Tyler Technologies, Inc. Page / 47 Packet Pg. 95 2.2.a 10. Additional Appendices 10.1 Intentionally left blank. City of Edmonds, WA Tyler Technologies, Inc. Packet Pg. 96 11. Project Timeline 11.1 ERP Project Timeline The Project Timeline establishes a target duration for each phase of the project. The timeline needs to account for resource availability, business goals, size and complexity of the project, and task duration requirements. These will be reviewed and adjusted, if needed, during the Initiate and Plan Stage. Refer to the Project Stages section of this SOW for information on work packages associated with each stage of the implementation. Durations may be revised when the Agreement is signed and further refined during the project. Eden to Enterprise ERP project start dates are dependent on wave availability. Waves are a common implementation start month for a group of Eden clients. Each wave has a designated number of slots available for clients to sign up — once those slots are full you must choose an alternate wave with availability A signed agreement is required to reserve your spot in a specific wave. 1 Financials • • System Wide I • • r 2 Utility Billing City of Edmonds, WA Tyler Technologies, Inc. Accounting Accounts Payable Budgeting Capital Assets Cash Management Contract Management Inventory Inventory Mobile Project & Grant Accounting Purchasing Accounts Receivable General Billing Cashiering ACFR Statement Builder Open Finance Analytics & Reporting w Executive Insights Enterprise Forms Content Manager Core includes Onboarding Enterprise ERP Admin & Security Tyler Payments • Utility Billing CIS • Utility Billing Meter Interface • Utility Billing Special Assessments • Central Property File • Resident Access 12 Months or as defined in the Project Plan and mutually agreed upon Average Days/Month: 7 12 Months or as defined in the Project Plan and mutually agreed upon Average Days/Month: 4 c� L w+ C 0 V a w N to N c� 0 0 L- aM 2 0 N c 0 w c d s ca Q Page / 49 Packet Pg. 97 3 Human Resources T. Management • 11.2 Intentionally left blank. Payroll with Employee Access Human Resources & Talent Management Recruiting Time & Attendance w Mobile or as defined in the Project Plan Access and mutually agreed upon 12 Months Average Days/Month: 4 City of Edmonds, WA Tyler Technologies, Inc. Page / 50 L w+ C O V a w N to N O C O M L CM C Q N C O E w C d E t v to Q Packet Pg. 98 2.2.b Bars Bars Desc Item 2024 2025 2026 2027 2028 Total 512.000.31.518.88.48.00 Repair/Maint Tyler On Prem Maintenance $103,168 $ - $ - $ - $ - 512.000.31.518.88.48.00 Repair/Maint Tyler ERP Annual Maintenance (SaaS) $ - $ 238,505 $ 238,505 $ 238,505 $ 238,505 512.000.31.518.88.48.00 Repair/Maint 3rd Party Hard/software $ - $ 4,055 $ 495 $ 495 $ 495 512.000.31.518.88.41.00 Prof/Services Tyler Implementation Svcs $ - $ 238,904 $ 238,904 $ 79,635 $ - $ 557,443.8 $103,168 $ 481,464 $ 477,904 $ 318,635 $ 239,000 Increase vs 2024 $ 378,296 $ 374,736 $ 215,467 $135,832 Notes: 1) Tyler Technology quote does not include sales tax. Taxes (10.5%) are added to the costing model 2) Implementation Services of $557,444 are distributed over a 28 month estimated project timeline Packet Pg. 99 2.3 City Council Agenda Item Meeting Date: 07/16/2024 Surplus equipment Staff Lead: Kim Dunscombe Department: Administrative Services Preparer: Kimberly Dunscombe Background/History The city regularly disposes of assets as part of its routine operations, and Council notification is required. Attached is a list of assets disposed of during FY 2023. This notification is strictly procedural, as approval to dispose of these items was granted last year. Staff Recommendation Forward to the next Council meeting consent agenda. Narrative <Type or insert text here> Attachments: 2023 Asset Disposals Packet Pg. 100 2.3.a 2023 Deletes Fund Fund Type FA Number FA Description Type Dept# Amount Depreciation 2023 Depr. Book Value 421 Proprietary 7756 1996 WALTON TRAILER #78 SWR V 421 6,715.97 6,715.97 511 Governmental 7908 1997 CHEV 1-TON WALK-IN VAN #5 FAC v 511.1 27,346.47 27,346.47 511 Governmental 8388 2000 CHEVY SILVERADO P/U #94 FAC v 511.1 20,025.85 20,025.85 511 Governmental 8589 2004 CHEV. SILVERADO TRUCK #28 PRK v 511.1 16,659.39 16,659.39 511 Governmental 8606 2004 CHEVY COLORADO #88 v 511.1 17,686.60 17,686.60 511 Governmental 8607 2004 CHEVY COLORADO - #102 PRK v 511.1 18,199.12 18,199.12 511 Governmental 8668 FORD F-250 - #002-WTR v 511.1 22,893.46 22,893.46 511 Governmental 8774 2007 FORD ESCAPE POL-872 v 511.1 20,162.48 20,162.48 511 Governmental 8761 2007 TOWMASTER T-24 v 511.1 14,665.32 14,665.32 - 511 Governmental 8825 2008 FORD F-450 035-SWR v 511.1 45,522.44 43,246.32 2,276.12 511 Governmental 8826 2008 FORD F-450 023-SWR v 511.1 46,668.60 44,335.17 2,333.43 511 Governmental 9188 436-POL 2017 FORD EXPLORER PPV v 511.1 60,103.04 60,103.04 - - 511 Governmental 9319 227-POL 2019 FORD POLICE EXPLORER v 511.1 70,436.14 35,218.07 35,218.07 511 Governmental 9238 PANASONIC CF-31 LAPTOP e 511.1 5,161.61 5,161.61 - 511 Governmental 9239 PANASONIC CF-31 LAPTOP e 511.1 5,161.61 5,161.61 511 Governmental 9240 PANASONIC CF-31 LAPTOP e 511.1 5,161.61 5,161.61 511 Governmental 9241 PANASONIC CF-31 LAPTOP e 511.1 5,161.61 5,161.61 511 Governmental 9242 PANASONIC CF-31 LAPTOP e 511.1 5,161.61 5,161.61 511 Governmental 9243 PANASONIC CF-31 LAPTOP e 511.1 5,161.61 5,161.61 511 Governmental 9244 PANASONIC CF-31 LAPTOP e 511.1 5,161.61 5,161.61 511 Governmental 9245 PANASONIC CF-31 LAPTOP e 511.1 5,161.61 5,161.61 511 Governmental 9246 PANASONIC CF-31 LAPTOP e 511.1 5,161.61 5,161.61 511 Governmental 9247 PANASONIC CF-31 LAPTOP e 511.1 5,161.62 5,161.62 - 900 Governmental 9292 POLICE INTERVIEW ROOM EQUIPMENT E 410 20,918.40 17,780.64 3,137.76 900 Governmental 9157 EDMONDS FISHING PIER REHABILITATION 1 640 2,127,912.41 339,671.64 - 1,788,240.77 421 Proprietary 72 PHASE 4 CITY WIDE MAIN ADJUSTMENT 1 654 190,135.71 119,594.15 70,541.56 423 Proprietary 116 SEWER TRUNK LID 108 1 655 104,107.31 104,107.31 - 423 Proprietary 119 SEWER TRUNK LID 119 1 655 92,525.50 92,525.50 900 Governmental 488 ANDERSON CENTER BUILDING i 651 8,787.15 8,787.15 900 Governmental 494 1979 REMODELING ANDERSON CEN i 651 17,333.34 17,333.34 900 Governmental 3626 LIBRARY AND PLAZA BLDG b 651 143,694.30 143,694.30 900 Governmental 4125 ANDERSON CENTER AND NEW WIND i 651 35,059.62 35,059.62 900 Governmental 6763 BRACKETT'S LANDING IMPROVEME i 640 10,790.82 10,790.82 - 900 Governmental 8572 PUBLIC SAFETY BUILDING b 651 61,391.67 42,429.40 18,962.27 900 Governmental 8572 PUBLIC SAFETY BUILDING b 651 255,800.20 176,790.20 79,010.00 900 Governmental 7019 LIBRARY BOOK DROP 1 651 11,628.20 11,628.20 - - Totals 3,518,785.62 1,519,065.64 7,747.31 1,991,972.67 C d E Q cr GN N _3 Q L 3 N M U) O Q 20 G N N N Q M N O N C d E t t1 O w Q Packet Pg. 101 2.4 City Council Agenda Item Meeting Date: 07/16/2024 Opioid Participation Form Staff Lead: Kim Dunscombe Department: Administrative Services Preparer: Kimberly Dunscombe Background/History In 2022, the Council approved the Mayor's signature on a Memorandum of Understanding (MOU) between Washington Municipalities, opting the city into the settlement of specific opioid lawsuits. Now, a new MOU for a distinct settlement has been presented, signaling the city's continued commitment to addressing the opioid crisis through legal avenues. This latest agreement underscores the municipality's dedication to seeking justice and relief for the community in the face of the ongoing opioid epidemic. As new settlements arise, to participate in, and be eligible to receive compensation, under the Settlement Agreement the city must complete and submit a Settlement Participation Form. There is a new nationwide settlement agreement with Kroger Co. The deadline to submit the Settlement Participation Form is August 12, 2024. The Attorney General's Office strongly recommends we join the settlement. Staff Recommendation Approve the Mayor to sign the Participation Form and forward to the next Council Meeting's consent agenda. Narrative The opioid settlement funds represent a pivotal opportunity to combat the devastating opioid crisis. These funds are earmarked for multifaceted approaches, including expanding access to addiction treatment and recovery services, funding prevention and education programs, bolstering law enforcement and first responder efforts and supporting initiatives aimed at addressing the root causes of addiction. By strategically allocating these resources, communities can work towards mitigating the far- reaching impact of opioid addiction and fostering pathways to healing and recovery for those affected. Attachments: Kroger-Ex.-K-Subdivision-Participatio n-Form Allocaton Agreement III Packet Pg. 102 2.4.a EXHIBIT K Subdivision Participation and Release Form Governmental Entity: State: Authorized Official: Address 1: Address 2: City, State, Zip: Phone: Email: The governmental entity identified above ("Governmental Entity"), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement Agreement dated March 22, 2024 ("Kroger Settlement"), and acting through the undersigned authorized official, hereby elects to participate in the Kroger Settlement, release all Released Claims against all Released Entities, and agrees as follows. 1. The Governmental Entity is aware of and has reviewed the Kroger Settlement, understands that all terms in this Participation and Release Form have the meanings defined therein, and agrees that by executing this Participation and Release Form, the Governmental Entity elects to participate in the Kroger Settlement and become a Participating Subdivision as provided therein. 2. The Governmental Entity shall promptly, and in any event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs' Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice substantially in the form found at https://nationalopioidsettlement.com/. 3. The Governmental Entity agrees to the terms of the Kroger Settlement pertaining to Participating Subdivisions as defined therein. 4. By agreeing to the terms of the Kroger Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date. 5. The Governmental Entity agrees to use any monies it receives through the Kroger Settlement solely for the purposes provided therein. 6. The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity's state where the Consent Judgment is filed for purposes limited to that court's role as provided in, and for resolving disputes to the extent provided in, the Kroger Settlement. The Governmental Entity likewise agrees to arbitrate before the National Arbitration Panel E 0 LL c 0 ea a .2 0 a 0 .Q 0 K-1 Packet Pg. 103 2.4.a as provided in, and for resolving disputes to the extent otherwise provided in, the Kroger Settlement. 7. The Governmental Entity has the right to enforce the Kroger Settlement as provided therein. 8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Kroger Settlement, including without limitation all provisions of Section XI (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official E capacity elected or appointed to serve any of the foregoing and any agency, person, or other LL entity claiming by or through any of the foregoing, and any other entity identified in the c definition of Releasor, provides for a release to the fullest extent of its authority. As a a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or M claimed, or to otherwise seek to establish liability for any Released Claims against any 0. Released Entity in any forum whatsoever. The releases provided for in the Kroger .o Settlement are intended by the Parties to be broad and shall be interpreted so as to give the p Released Entities the broadest possible bar against any liability relating in any way to E Released Claims and extend to the full extent of the power of the Governmental Entity to 0 release claims. The Kroger Settlement shall be a complete bar to any Released Claim. 9. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the Kroger Settlement. 10. In connection with the releases provided for in the Kroger Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her would have materially affected his or her settlement with the debtor or released party. A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities' decision to participate in the Kroger Settlement. K-2 Packet Pg. 104 2.4.a 11. Nothing herein is intended to modify in any way the terms of the Kroger Settlement, to which Governmental Entity hereby agrees. To the extent this Participation and Release Form is interpreted differently from the Kroger Settlement in any respect, the Kroger Settlement controls. I have all necessary power and authorization to execute this Participation and Release Form on behalf of the Governmental Entity. Signature: Name: Title: Date: E L 0 LL c 0 is a .2 0 a 'o Q O K-3 Packet Pg. 105 WASHINGTON STATE ALLOCATION AGREEMENT GOVERNING THE ALLOCATION OF OPIOID SETTLEMENT FUNDS PAID BY KROGER JUNE 28, 2024 This Washington State Allocation Agreement Governing the Allocation of Opioid Settlement Funds Paid by Kroger (the "Allocation Agreement III") governs the distribution of funds obtained from the Kroger Co. ("Kroger") in connection with the resolution of any and all claims by the State of Washington and the counties, cities, and towns in Washington State ("Local Governments") against Kroger via the Kroger Settlement Agreement dated March 22, 2024 ("Settlement"). The Settlement can be accessed at https://nationalopioidsettlement.com/. The terms and definitions of the Settlement are incorporated into this Allocation Agreement III, and any undefined terms in this Allocation Agreement III are as defined in the Settlement. This Allocation Agreement III is intended to be a State -Subdivision Agreement as defined in the Settlement. This Allocation Agreement III shall be interpreted to be consistent with the requirements of a State -Subdivision Agreement in the Settlement. 2. This Allocation Agreement III shall become effective only if all of the following occur: A. The State of Washington joins the Settlement and becomes a Settling State as provided for in the Settlement. B. The Settlement becomes final and effective and a Consent Judgment is filed and approved as provided for in the Settlement. C. The number of Local Governments that execute and return this Allocation Agreement III satisfies the participation requirements for a State - Subdivision Agreement as specified in the Settlement. Requirements to become a ParticipatingLocal Government. To become a Participating Local Government that can participate in this Allocation Agreement III, a Local Government must do all of the following: A. The Local Government must execute and return this Allocation Agreement III. B. The Local Government must release its claims against Kroger identified in the Settlement and agree to be bound by the terms of the Settlement by timely executing and returning the Participation Form, which is Exhibit K of the Settlement. C. Litigating Subdivisions, also referred to as Litigating Local Governments, must dismiss Kroger with prejudice from their lawsuits. E L 0 U. c 0 �a a .2 IL .2 Q O Packet Pg. 106 2.4.b D. Each of the Local Governments that is eligible to participate in this Allocation Agreement III has previously executed and signed the One Washington Memorandum of Understanding Between Washington Municipalities ("MOU") agreed to by the Participating Local Governments in Washington State, which is attached hereto as Exhibit 1. By executing this Allocation Agreement III, the local government agrees and affirms that the MOU applies to and shall govern the Local Government Share as modified by this Allocation Agreement III for the Settlement. A Local Government that meets all of the conditions in this paragraph shall be deemed a "Participating Local Government." 4. This Allocation Agreement III applies to the State of Washington's allocation of the (1) Adjusted State Remediation Payment and (2) Additional Remediation Amount, which collectively shall be referred to as the "Washington Abatement Amount." As specified in the Settlement, the Washington Abatement Amount will vary dependent on the percentage of Participating Local Governments and whether there are any Later Litigating Subdivisions. This Allocation Agreement III does not apply to the State Cost Fund, State AG Fees and Costs, or any attorneys' fees, fees, costs, or expenses referred to in the Settlement or that are paid directly or indirectly via the Settlement to the State of Washington ("State's Fees and Costs"). 6. This Allocation Agreement III and the MOU are a State Back -Stop Agreement. Kroger is paying a portion of the Local Governments' attorneys' fees and costs as provided for in the Settlement. The total contingent fees an attorney receives from the Contingency Fee Fund in the Settlement, the MOU, and this Allocation Agreement III combined cannot exceed 15% of the portion of the LG Share paid to the Litigating Local Government that retained that firm to litigate against the Settling Entities (i.e., if City X filed suit with outside counsel on a contingency fee contract and City X receives $1,000,000 from the Settlement, then the maximum that the firm can receive is $150,000 for fees as to the Kroger Settlement.) 7. No portion of the State's Fees and Costs and/or the State Share as defined in Paragraphs 5 and 9 of this Allocation Agreement III shall be used to fund the Government Fee Fund ("GFF") referred to in Paragraph 11 of this Allocation Agreement III and Section D of the MOU, or in any other way to fund any Participating Local Government's attorneys' fees, costs, or common benefit tax. 8. The Washington Abatement Amount shall and must be used by the State and Participating Local Governments for future Opioid Remediation as defined in the Settlement, except as allowed by the Settlement. E 0 U. c 0 �a a .2 IL .2 Q 0 2 Packet Pg. 107 2.4.b 10. 11. The State and the Participating Local Governments agree to divide the Washington Abatement Amount as follows: A. Fifty percent (50%) to the State of Washington ("State Share"). B. Fifty percent (50%) to the Participating Local Governments ("LG Share") The LG Share shall be distributed to Participating Local Governments pursuant to the MOU as amended and modified in this Allocation Agreement III. For purposes of this Allocation Agreement III only, the MOU is modified as follows and any contrary provisions in the MOU are struck: A. Exhibit A of the MOU is replaced by Exhibit E of the Settlement. B. The definition of "Litigating Local Governments" in Section A.4 of the MOU shall mean Litigating Subdivisions as defined in the Settlement and shall also include any local government that notified Judge Polster in Case No. 1:17-and-02804-DAP of its intent to sue Kroger in 2023 after the release of updated ARCOS data. C. The definition of "National Settlement Agreement" in Section A.6 of the MOU shall mean the Settlement. D. The definition of "Settlement" in Section A.14 of the MOU shall mean the Settlement. E. The MOU is amended to add new Section C.4.g.vIII, which provides as follows: "If a Participating Local Government receiving a direct payment (a) uses Opioid Funds other than as provided for in the Settlement, (b) does not comply with conditions for receiving direct payments under the MOU, or (c) does not promptly submit necessary reporting and compliance information to its Regional Opioid Abatement Counsel ("Regional OAC") as defined at Section C.4.h of the MOU, then the Regional OAC may suspend direct payments to the Participating Local Government after notice, an opportunity to cure, and sufficient due process. If direct payments to Participating Local Government are suspended, the payments shall be treated as if the Participating Local Government is foregoing their allocation of Opioid Funds pursuant to Section C.4.d and C.4.j.IIIi of the MOU. In the event of a suspension, the Regional OAC shall give prompt notice to the suspended Participating Local Government and the Settlement Fund Administrator specifying the reasons for the suspension, the process for reinstatement, the factors that will be considered for reinstatement, and the due process that will be provided. A suspended Participating Local E L 0 U. c �a a .2 IL .2 Q 0 Packet Pg. 108 2.4.b Government may apply to the Regional OAC to be reinstated for direct payments no earlier than five years after the date of suspension." F. The amounts payable to each law firm representing a Litigating Local Government from the GFF shall be consistent with the MOU and the process set forth in the Order Appointing the Fee Panel to Allocate and Disburse Attorney's Fees Provided for in State Back -Stop Agreements, Case No. 1:17-and-02804-DAP Doc #: 4543 (June 17, 2022). All amounts that the City of Seattle has contributed to the GFF shall be returned to the City of Seattle by the Settlement Administrator rather than paid to Hagens Berman Sobol Shapiro LLP. G. The GFF set forth in the MOU shall be funded by the LG Share of the E Washington Abatement Amount only. To the extent the common benefit Ui tax is not already payable by the Settling Entities as contemplated by c Section D.8 of the MOU, the GFF shall be used to pay Litigating Local Government contingency fee agreements and any common benefit tax referred to in Section D of the MOU, which shall be paid on a pro rata basis to eligible law firms as determined by the GFF Administrator. a •o H. To fund the GFF, fifteen percent (15%) of the LG Share shall be deposited o in the GFF from each LG Share settlement payment until the Litigating Subdivisions' contingency fee agreements and common benefit tax (if, any) referred to in Section D of the MOU are satisfied. Under no circumstances will any Primary Subdivision or Litigating Local Government be required to contribute to the GFF more than 15% of the a portion of the LG Share allocated to such Primary Subdivision or Litigating Local Government. In addition, under no circumstances will ° a any portion of the LG Share allocated to a Litigating Local Government be c used to pay the contingency fees or litigation expenses of counsel for some a other Litigating Local Government. c The maximum amount of any Litigating Local Government contingency fee agreement (from the Contingency Fee Fund of the Settlement) payable to a law firm permitted for compensation shall be fifteen percent (15%) of the portion of the LG Share paid to the Litigating Local Government that retained that firm (i.e., if City X filed suit with outside counsel on a contingency fee contract and City X receives $1,000,000 from the Settlement, then the maximum that the firm can receive is $150,000 for fees.) The firms also shall be paid documented expenses due under their contingency fee agreements that have been paid by the law firm attributable to that Litigating Local Government. Consistent with Agreement on Attorneys' Fees, Costs, and Expenses, which is Exhibit R of the Settlement, amounts due to Participating Litigating Subdivisions' attorneys under this Allocation Agreement III shall not impact (i) costs paid by the subdivisions to their attorneys pursuant to a State Back -Stop 4 Packet Pg. 109 2.4.b agreement, (ii) fees paid to subdivision attorneys from the Common Benefit Fund for common benefit work performed by the attorneys pursuant to Exhibit R of the Settlement, or (iii) costs paid to subdivision attorneys from the MDL Expense Fund for expenses incurred by the attorneys pursuant to the Settlement. J. Under no circumstances may counsel receive more for its work on behalf of a Litigating Local Government than it would under its contingency agreement with that Litigating Local Government. To the extent a law firm was retained by a Litigating Local Government on a contingency fee agreement that provides for compensation at a rate that is less than fifteen percent (15%) of that Litigating Local Government's recovery, the maximum amount payable to that law firm referred to in Section D.3 of the MOU shall be the percentage set forth in that contingency fee E agreement. Ui c 0 K. For the avoidance of doubt, both payments from the GFF and the payment to the Participating Litigating Local Governments' attorneys from the Contingency Fee Fund in the Settlement shall be included when E calculating whether the aforementioned fifteen percent (15%) maximum a percentage (or less if the provisions of Paragraph 10.J of this Allocation o Agreement III apply) of any Litigating Local Government contingency fee p agreement referred to above has been met. L. To the extent there are any excess funds in the GFF, the Settlement Administrator shall facilitate the return of those funds to the Participating Local Governments as provided for in Section D.6 of the MOU. 12. In connection with the execution and administration of this Allocation Agreement III, the State and the Participating Local Governments agree to abide by the Public Records Act, RCW 42.56 et seq. 13. All Participating Local Governments, Regional OACs, and the State shall maintain all non -transitory records related to this Allocation Agreement III as well as the receipt and expenditure of the funds from the Settlement for no less than five (5) years. 14. If any party to this Allocation Agreement III believes that a Participating Local Government, Regional OAC, the State, an entity, or individual involved in the receipt, distribution, or administration of the funds from the Settlement has violated any applicable ethics codes or rules, a complaint shall be lodged with the appropriate forum for handling such matters, with a copy of the complaint promptly sent to the Washington Attorney General, Complex Litigation Division, Division Chief, 800 Fifth Avenue, Suite 2000, Seattle, Washington 98104. 15. To the extent (i) a region utilizes a pre-existing regional body to establish its Opioid Abatement Council pursuant to the Section 4.h of the MOU, and (III) that Packet Pg. 110 2.4.b pre-existing regional body is subject to the requirements of the Community Behavioral Health Services Act, RCW 71.24 et seq., the State and the Participating Local Governments agree that the Opioid Funds paid by Kroger is subject to the requirements of the MOU and this Allocation Agreement III. 16. Upon request by Kroger, the Participating Local Governments must comply with the Tax Cooperation and Reporting provisions of the Settlement. 17. Venue for any legal action related to this Allocation Agreement III (separate and apart from the MOU or the Settlement) shall be in King County, Washington. 18. Each party represents that all procedures necessary to authorize such party's execution of this Allocation Agreement III have been performed and that such person signing for such party has been authorized to execute this Allocation L Agreement III. U. c 0 ea a .2 R a .2 Q O 6 Packet Pg. 111 FOR THE STATE OF WASHINGTON: ROBERT W. FERGUSON Attorney General Date: 7 Packet Pg. 112 2.4.b FOR THE PARTICIPATING LOCAL GOVERNMENT: Name of Participating Local Government: Authorized signature: Name: Title: Date: E Packet Pg. 113 2.4.b EXHIBIT I One Washington Memorandum of Understanding Between Washington Municipalities E L 0 LL _ 0 r 0 Q ..2 L cu a 'o Q O a� E a> p L cm Q _ O 0 ci _0 Q y.+ _ 0 E t 0 0 rt+ rt+ Q Packet Pg. 114 2.4.b ONE WASHINGTON MEMORANDUM OF UNDERSTANDING BETWEEN WASHINGTON MUNICIPALITIES Whereas, the people of the State of Washington and its communities have been harmed by entities within the Pharmaceutical Supply Chain who manufacture, distribute, and dispense prescription opioids; Whereas, certain Local Governments, through their elected representatives and counsel, are engaged in litigation seeking to hold these entities within the Pharmaceutical Supply Chain of prescription opioids accountable for the damage they have caused to the Local Governments; Whereas, Local Governments and elected officials share a common desire to abate and alleviate the impacts of harms caused by these entities within the Pharmaceutical Supply Chain throughout the State of Washington, and strive to ensure that principals of equity and equitable service delivery are factors considered in the allocation and use of Opioid Funds; and Whereas, certain Local Governments engaged in litigation and the other cities and counties in Washington desire to agree on a form of allocation for Opioid Funds they receive from entities within the Pharmaceutical Supply Chain. Now therefore, the Local Governments enter into this Memorandum of Understanding ("MOU") relating to the allocation and use of the proceeds of Settlements described. A. Definitions As used in this MOU: 1. "Allocation Regions" are the same geographic areas as the existing nine (9) Washington State Accountable Community of Health (ACH) Regions and have the purpose described in Section C below. 2. "Approved Purpose(s)" shall mean the strategies specified and set forth in the Opioid Abatement Strategies attached as Exhibit A. 3. "Effective Date" shall mean the date on which a court of competent jurisdiction enters the first Settlement by order or consent decree. The Parties anticipate that more than one Settlement will be administered according to the terms of this MOU, but that the first entered Settlement will trigger allocation of Opioid Funds in accordance with Section B herein, and the formation of the Opioid Abatement Councils in Section C. 4. "Litigating Local Government(s)" shall mean Local Governments that filed suit against any Pharmaceutical Supply Chain Participant pertaining to the Opioid epidemic prior to September 1, 2020. E 0 U. c 0 is a .2 a .2 Q 0 Packet Pg. 115 2.4.b 5. "Local Government(s)" shall mean all counties, cities, and towns within the geographic boundaries of the State of Washington. 6. "National Settlement Agreements" means the national opioid settlement agreements dated July 21, 2021 involving Johnson & Johnson, and distributors AmerisourceBergen, Cardinal Health and McKesson as well as their subsidiaries, affiliates, officers, and directors named in the National Settlement Agreements, including all amendments thereto. 7. "Opioid Funds" shall mean monetary amounts obtained through a Settlement as defined in this MOU. 8. "Opioid Abatement Council" shall have the meaning described in Section C below. 9. "Participating Local Government(s)" shall mean all counties, cities, and towns within the geographic boundaries of the State that have chosen to sign on to this MOU. The Participating Local Governments may be referred to separately in this MOU as "Participating Counties" and "Participating Cities and Towns" (or "Participating Cities or Towns," as appropriate) or "Parties." 10. "Pharmaceutical Supply Chain" shall mean the process and channels through which controlled substances are manufactured, marketed, promoted, distributed, and/or dispensed, including prescription opioids. 11. "Pharmaceutical Supply Chain Participant" shall mean any entity that engages in or has engaged in the manufacture, marketing, promotion, distribution, and/or dispensing of a prescription opioid, including any entity that has assisted in any of the above. 12. "Qualified Settlement Fund Account," or "QSF Account," shall mean an account set up as a qualified settlement fund, 468b fund, as authorized by Treasury Regulations 1.46813-1(c) (26 CFR §1.468B-1). 13. "Regional Agreements" shall mean the understanding reached by the Participating Local Counties and Cities within an Allocation Region governing the allocation, management, distribution of Opioid Funds within that Allocation Region. 14. "Settlement" shall mean the future negotiated resolution of legal or equitable claims against a Pharmaceutical Supply Chain Participant when that resolution has been jointly entered into by the Participating Local Governments. "Settlement" expressly does not include a plan of reorganization confirmed under Title 11 of the United States Code, irrespective of the extent to which Participating Local Governments vote in favor of or otherwise support such plan of reorganization. E L 0 U. r- 0 is a .2 a 'o .Q 0 Packet Pg. 116 2.4.b 15. "Trustee" shall mean an independent trustee who shall be responsible for the ministerial task of releasing Opioid Funds from a QSF account to Participating Local Governments as authorized herein and accounting for all payments into or out of the trust. 16. The "Washington State Accountable Communities of Health" or "ACH" shall mean the nine (9) regions described in Section C below. B. Allocation of Settlement Proceeds for Approved Purposes 1. All Opioid Funds shall be held in a QSF and distributed by the Trustee, for the benefit of the Participating Local Governments, only in a manner consistent with this MOU. Distribution of Opioid Funds will be subject to the mechanisms for auditing and reporting set forth below to provide public accountability and transparency. 2. All Opioid Funds, regardless of allocation, shall be utilized pursuant to Approved Purposes as defined herein and set forth in Exhibit A. Compliance with this requirement shall be verified through reporting, as set out in this MOU. 3. The division of Opioid Funds shall first be allocated to Participating Counties based on the methodology utilized for the Negotiation Class in In Re: National Prescription Opiate Litigation, United States District Court for the Northern District of Ohio, Case No. 1:17-and-02804-DAP. The allocation model uses three equally weighted factors: (1) the amount of opioids shipped to the county; (2) the number of opioid deaths that occurred in that county; and (3) the number of people who suffer opioid use disorder in that county. The allocation percentages that result from application of this methodology are set forth in the "County Total" line item in Exhibit B. In the event any county does not participate in this MOU, that county's percentage share shall be reallocated proportionally amongst the Participating Counties by applying this same methodology to only the Participating Counties. 4. Allocation and distribution of Opioid Funds within each Participating County will be based on regional agreements as described in Section C. C. Regional Agreements 1. For the purpose of this MOU, the regional structure for decision - making related to opioid fund allocation will be based upon the nine (9) pre- defined Washington State Accountable Community of Health Regions (Allocation Regions). Reference to these pre -defined regions is solely for the purpose of E 0 U. c 0 ea a .2 IL .2 Q 0 Packet Pg. 117 2.4.b drawing geographic boundaries to facilitate regional agreements for use of Opioid Funds. The Allocation Regions are as follows: • King County (Single County Region) • Pierce County (Single County Region) • Olympic Community of Health Region (Clallam, Jefferson, and Kitsap Counties) • Cascade Pacific Action Alliance Region (Cowlitz, Grays Harbor, Lewis, Mason, Pacific, Thurston, and Wahkiakum Counties) • North Sound Region (Island, San Juan, Skagit, Snohomish, and Whatcom Counties) • SouthWest Region (Clark, Klickitat, and Skamania Counties) • Greater Columbia Region (Asotin, Benton, Columbia, Franklin, Garfield, Kittitas, Walla Walla, Whitman, and Yakima Counties) E • Spokane Region (Adams, Ferry, Lincoln, Pend Oreille, Spokane, and U. Stevens Counties) o • North Central Region (Chelan, Douglas, Grant, and Okanogan Counties) a 2. Opioid Funds will be allocated, distributed and managed within .2 a each Allocation Region, as determined by its Regional Agreement as set forth .2 below. If an Allocation Region does not have a Regional Agreement enumerated in this MOU, and does not subsequently adopt a Regional Agreement per Section o C.5, the default mechanism for allocation, distribution and management of Opioid Funds described in Section CA.a will apply. Each Allocation Region must have an OAC whose composition and responsibilities shall be defined by Regional E Agreement or as set forth in Section C.4. King County's Regional Agreement is reflected in Exhibit C to this MOU. 4. All other Allocation Regions that have not specified a Regional Agreement for allocating, distributing and managing Opioid Funds, will apply the following default methodology: a. Opioid Funds shall be allocated within each Allocation Region by taking the allocation for a Participating County from Exhibit B and apportioning those funds between that Participating County and its Participating Cities and Towns. Exhibit B also sets forth the allocation to the Participating Counties and the Participating Cities or Towns within the Counties based on a default allocation formula. As set forth above in Section B.3, to determine the allocation to a county, this formula utilizes: (1) the amount of opioids shipped to the county; (2) the number of opioid deaths that occurred in that county; and (3) the number of people who suffer opioid use disorder in that county. To determine the allocation within a county, the formula utilizes historical federal data showing how the specific Counties and the Cities and Towns within the Counties have 4 Packet Pg. 118 2.4.b made opioids epidemic -related expenditures in the past. This is the same methodology used in the National Settlement Agreements for county and intra-county allocations. A Participating County, and the Cities and Towns within it may enter into a separate intra-county allocation agreement to modify how the Opioid Funds are allocated amongst themselves, provided the modification is in writing and agreed to by all Participating Local Governments in the County. Such an agreement shall not modify any of the other terms or requirements of this MOU. b. 10% of the Opioid Funds received by the Region will be reserved, on an annual basis, for administrative costs related to the OAC. The OAC will provide an annual accounting for actual costs and any reserved funds that exceed actual costs will be reallocated to Participating Local Governments within the Region. c U. C. Cities and towns with a population of less than 10,000 shall be o excluded from the allocation, with the exception of cities and towns that a are Litigating Participating Local Governments. The portion of the Opioid .2 Funds that would have been allocated to a city or town with a population a of less than 10,000 that is not a Litigating Participating Local Government shall be redistributed to Participating Counties in the manner directed in C.4.a above. o d. Each Participating County, City, or Town may elect to have its share re -allocated to the OAC in which it is located. The OAC will then utilize this share for the benefit of Participating Local Governments within that Allocation Region, consistent with the Approved Purposes set forth in Exhibit A. A Participating Local Government's election to forego its allocation of Opioid Funds shall apply to all future allocations unless the Participating Local Government notifies its respective OAC otherwise. If a Participating Local Government elects to forego its allocation of the Opioid Funds, the Participating Local Government shall be excused from the reporting requirements set forth in this Agreement. e. Participating Local Governments that receive a direct payment maintain full discretion over the use and distribution of their allocation of Opioid Funds, provided the Opioid Funds are used solely for Approved Purposes. Reasonable administrative costs for a Participating Local Government to administer its allocation of Opioid Funds shall not exceed actual costs or 10% of the Participating Local Government's allocation of Opioid Funds, whichever is less. f. A Local Government that chooses not to become a Participating Local Government will not receive a direct allocation of Opioid Funds. The portion of the Opioid Funds that would have been allocated to a Local Government that is not a Participating Local Government shall be Packet Pg. 119 2.4.b redistributed to Participating Counties in the manner directed in C.4.a above. g. As a condition of receiving a direct payment, each Participating Local Government that receives a direct payment agrees to undertake the following actions: i. Developing a methodology for obtaining proposals for use of Opioid Funds. ii. Ensuring there is opportunity for community -based input on priorities for Opioid Fund programs and services. iii. Receiving and reviewing proposals for use of Opioid Funds for Approved Purposes. iv. Approving or denying proposals for use of Opioid Funds for Approved Purposes. V. Receiving funds from the Trustee for approved proposals and distributing the Opioid Funds to the recipient. vi. Reporting to the OAC and making publicly available all decisions on Opioid Fund allocation applications, distributions and expenditures. h. Prior to any distribution of Opioid Funds within the Allocation Region, The Participating Local Governments must establish an Opioid Abatement Council (OAC) to oversee Opioid Fund allocation, distribution, expenditures and dispute resolution. The OAC may be a preexisting regional body or may be a new body created for purposes of executing the obligations of this MOU. i. The OAC for each Allocation Region shall be composed of representation from both Participating Counties and Participating Towns or Cities within the Region. The method of selecting members, and the terms for which they will serve will be determined by the Allocation Region's Participating Local Governments. All persons who serve on the OAC must have work or educational experience pertaining to one or more Approved Uses. j. The Regional OAC will be responsible for the following actions: i. Overseeing distribution of Opioid Funds from Participating Local Governments to programs and services within the Allocation Region for Approved Purposes. E 0 U. c 0 ea a .2 a 'o .Q 0 Packet Pg. 120 2.4.b ii. Annual review of expenditure reports from Participating Local Jurisdictions within the Allocation Region for compliance with Approved Purposes and the terms of this MOU and any Settlement. iii. In the case where Participating Local Governments chose to forego their allocation of Opioid Funds: (i) Approving or denying proposals by Participating Local Governments or community groups to the OAC for use of Opioid Funds within the Allocation Region. (ii) Directing the Trustee to distribute Opioid Funds for use by Participating Local Governments or community groups whose proposals are approved by the OAC. (iii) Administrating and maintaining records of all OAC decisions and distributions of Opioid Funds. iv. Reporting and making publicly available all decisions on Opioid Fund allocation applications, distributions and expenditures by the OAC or directly by Participating Local Governments. V. Developing and maintaining a centralized public dashboard or other repository for the publication of expenditure data from any Participating Local Government that receives Opioid Funds, and for expenditures by the OAC in that Allocation Region, which it shall update at least annually. vi. If necessary, requiring and collecting additional outcome - related data from Participating Local Governments to evaluate the use of Opioid Funds, and all Participating Local Governments shall comply with such requirements. vii. Hearing complaints by Participating Local Governments within the Allocation Region regarding alleged failure to (1) use Opioid Funds for Approved Purposes or (2) comply with reporting requirements. 5. Participating Local Governments may agree and elect to share, pool, or collaborate with their respective allocation of Opioid Funds in any manner they choose by adopting a Regional Agreement, so long as such sharing, pooling, or collaboration is used for Approved Purposes and complies with the terms of this MOU and any Settlement. E 0 U. c 0 �a a .2 a .2 Q 0 Packet Pg. 121 2.4.b 6. Nothing in this MOU should alter or change any Participating Local Government's rights to pursue its own claim. Rather, the intent of this MOU is to join all parties who wish to be Participating Local Governments to agree upon an allocation formula for any Opioid Funds from any future binding Settlement with one or more Pharmaceutical Supply Chain Participants for all Local Governments in the State of Washington. 7. If any Participating Local Government disputes the amount it receives from its allocation of Opioid Funds, the Participating Local Government shall alert its respective OAC within sixty (60) days of discovering the information underlying the dispute. Failure to alert its OAC within this time frame shall not constitute a waiver of the Participating Local Government's right to seek recoupment of any c deficiency in its allocation of Opioid Funds. U. c 0 8. If any OAC concludes that a Participating Local Government's a expenditure of its allocation of Opioid Funds did not comply with the .2 Approved Purposes listed in Exhibit A, or the terms of this MOU, or that a the Participating Local Government otherwise misused its allocation of Opioid Funds, the OAC may take remedial action against the alleged offending Participating Local Government. Such remedial action is left to 0 the discretion of the OAC and may include withholding future Opioid Funds owed to the offending Participating Local Government or requiring the offending Participating Local Government to reimburse improperly E expended Opioid Funds back to the OAC to be re -allocated to the L remaining Participating Local Governments within that Region. Q 9. All Participating Local Governments and OAC shall maintain all records related to the receipt and expenditure of Opioid Funds for no less than five (5) years and shall make such records available for review by any other Participating Local Government or OAC, or the public. Records requested by the public shall be produced in accordance with Washington's Public Records Act RCW 42.56.001 et seq. Records requested by another Participating Local Government or an OAC shall be produced within twenty-one (21) days of the date the record request was received. This requirement does not supplant any Participating Local Government or OAC's obligations under Washington's Public Records Act RCW 42.56.001 et seq. D. Payment of Counsel and Litigation Expenses 1. The Litigating Local Governments have incurred attorneys' fees and litigation expenses relating to their prosecution of claims against the Pharmaceutical Supply Chain Participants, and this prosecution has inured to the benefit of all Participating Local Governments. Accordingly, a Washington H. Packet Pg. 122 2.4.b Government Fee Fund ("GFF") shall be established that ensures that all Parties that receive Opioid Funds contribute to the payment of fees and expenses incurred to prosecute the claims against the Pharmaceutical Supply Chain Participants, regardless of whether they are litigating or non -litigating entities. 2. The amount of the GFF shall be based as follows: the funds to be deposited in the GFF shall be equal to 15% of the total cash value of the Opioid Funds. 3. The maximum percentage of any contingency fee agreement permitted for compensation shall be 15% of the portion of the Opioid Funds allocated to the Litigating Local Government that is a party to the contingency fee agreement, plus expenses attributable to that Litigating Local Government. Under no circumstances may counsel collect more for its work on behalf of a Litigating c Local Government than it would under its contingency agreement with that U. Litigating Local Government. o is a 4. Payments from the GFF shall be overseen by a committee (the .2 "Opioid Fee and Expense Committee") consisting of one representative of the a following law firms: (a) Keller Rohrback L.LP.; (b) Hagens Berman Sobol Shapiro LLP; (c) Goldfarb & Huck Roth Rioj as, PLLC; and (d) Napoli Shkolnik 2 PLLC. The role of the Opioid Fee and Expense Committee shall be limited to 0 ensuring that the GFF is administered in accordance with this Section. 5. In the event that settling Pharmaceutical Supply Chain Participants do not pay the fees and expenses of the Participating Local Governments directly at the time settlement is achieved, payments to counsel for Participating Local Governments shall be made from the GFF over not more than three years, with 50% paid within 12 months of the date of Settlement and 25% paid in each subsequent year, or at the time the total Settlement amount is paid to the Trustee by the Defendants, whichever is sooner. 6. Any funds remaining in the GFF in excess of. (i) the amounts needed to cover Litigating Local Governments' private counsel's representation agreements, and (ii) the amounts needed to cover the common benefit tax discussed in Section C.8 below (if not paid directly by the Defendants in connection with future settlement(s), shall revert to the Participating Local Governments pro rata according to the percentages set forth in Exhibits B, to be used for Approved Purposes as set forth herein and in Exhibit A. 7. In the event that funds in the GFF are not sufficient to pay all fees and expenses owed under this Section, payments to counsel for all Litigating Local Governments shall be reduced on a pro rata basis. The Litigating Local Governments will not be responsible for any of these reduced amounts. Packet Pg. 123 2.4.b 8. The Parties anticipate that any Opioid Funds they receive will be subject to a common benefit "tax" imposed by the court in In Re: National Prescription Opiate Litigation, United States District Court for the Northern District of Ohio, Case No. 1:17-and-02804-DAP ("Common Benefit Tax"). If this occurs, the Participating Local Governments shall first seek to have the settling defendants pay the Common Benefit Tax. If the settling defendants do not agree to pay the Common Benefit Tax, then the Common Benefit Tax shall be paid from the Opioid Funds and by both litigating and non -litigating Local Governments. This payment shall occur prior to allocation and distribution of funds to the Participating Local Governments. In the event that GFF is not fully exhausted to pay the Litigating Local Governments' private counsel's representation agreements, excess funds in the GFF shall be applied to pay the Common Benefit Tax (if any). E L E. General Terms Ui c 0 1. If any Participating Local Government believes another a Participating Local Government, not including the Regional Abatement Advisory .2 Councils, violated the terms of this MOU, the alleging Participating Local a Government may seek to enforce the terms of this MOU in the court in which any applicable Settlement(s) was entered, provided the alleging Participating Local Government first provides the alleged offending Participating Local Government o notice of the alleged violation(s) and a reasonable opportunity to cure the alleged violation(s). In such an enforcement action, any alleging Participating Local Government or alleged offending Participating Local Government may be E represented by their respective public entity in accordance with Washington law. P 2. Nothing in this MOU shall be interpreted to waive the right of any Participating Local Government to seek judicial relief for conduct occurring outside the scope of this MOU that violates any Washington law. In such an action, the alleged offending Participating Local Government, including the Regional Abatement Advisory Councils, may be represented by their respective public entities in accordance with Washington law. In the event of a conflict, any Participating Local Government, including the Regional Abatement Advisory Councils and its Members, may seek outside representation to defend itself against such an action. 3. Venue for any legal action related to this MOU shall be in the court in which the Participating Local Government is located or in accordance with the court rules on venue in that jurisdiction. This provision is not intended to expand the court rules on venue. 4. This MOU may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. The Participating Local Governments approve the use of electronic signatures for execution of this MOU. All use of electronic signatures 10 Packet Pg. 124 2.4.b shall be governed by the Uniform Electronic Transactions Act. The Parties agree not to deny the legal effect or enforceability of the MOU solely because it is in electronic form or because an electronic record was used in its formation. The Participating Local Government agree not to object to the admissibility of the MOU in the form of an electronic record, or a paper copy of an electronic document, or a paper copy of a document bearing an electronic signature, on the grounds that it is an electronic record or electronic signature or that it is not in its original form or is not an original. 5. Each Participating Local Government represents that all procedures necessary to authorize such Participating Local Government's execution of this MOU have been performed and that the person signing for such Parry has been authorized to execute the MOU. E L O U. C O [Remainder of Page Intentionally Left Blank — Signature Pages Follow] a .2 a 'o Q O 11 Packet Pg. 125 2.4.b This One Washington Memorandum of Understanding Between Washington Municipalities is signed this day of , 2022 by: Name & Title On behalf of 4894-0031-1574, v. 2 12 L O LL O r cc Q ..2+ L M a .2 Q O Packet Pg. 126 2.4.b EXHIBIT A E Packet Pg. 127 2.4.b OPIOID ABATEMENT STRATEGIES PART ONE: TREATMENT A. TREAT OPIOID USE DISORDER (OUD Support treatment of Opioid Use Disorder (OUD) and any co-occurring Substance Use Disorder or Mental Health (SUD/MH) conditions, co -usage, and/or co -addiction through evidence -based, evidence -informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Expand availability of treatment for OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including all forms of Medication -Assisted Treatment (MAT) approved by the U.S. Food and Drug Administration. 2. Support and reimburse services that include the full American Society of Addiction Medicine (ASAM) continuum of care for OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including but not limited to: a. Medication -Assisted Treatment (MAT); b. Abstinence -based treatment; c. Treatment, recovery, or other services provided by states, subdivisions, community health centers; non -for -profit providers; or for -profit providers; d. Treatment by providers that focus on OUD treatment as well as treatment by providers that offer OUD treatment along with treatment for other SUD/MH conditions, co -usage, and/or co -addiction; or e. Evidence -informed residential services programs, as noted below. 3. Expand telehealth to increase access to treatment for OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including MAT, as well as counseling, psychiatric support, and other treatment and recovery support services. 4. Improve oversight of Opioid Treatment Programs (OTPs) to assure evidence -based, evidence -informed, or promising practices such as adequate methadone dosing. 5. Support mobile intervention, treatment, and recovery services, offered by qualified professionals and service providers, such as peer recovery coaches, for persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction and for persons who have experienced an opioid overdose. 6. Support treatment of mental health trauma resulting from the traumatic experiences of the opioid user (e.g., violence, sexual assault, human trafficking, or adverse childhood experiences) and family members (e.g., surviving family members after an overdose 1 Packet Pg. 128 2.4.b or overdose fatality), and training of health care personnel to identify and address such trauma. 7. Support detoxification (detox) and withdrawal management services for persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including medical detox, referral to treatment, or connections to other services or supports. 8. Support training on MAT for health care providers, students, or other supporting professionals, such as peer recovery coaches or recovery outreach specialists, including telementoring to assist community -based providers in rural or underserved areas. 9. Support workforce development for addiction professionals who work with persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction. 10. Provide fellowships for addiction medicine specialists for direct patient care, instructors, and clinical research for treatments. 11. Provide funding and training for clinicians to obtain a waiver under the federal Drug Addiction Treatment Act of 2000 (DATA 2000) to prescribe MAT for OUD, and provide technical assistance and professional support to clinicians who have obtained a DATA 2000 waiver. 12. Support the dissemination of web -based training curricula, such as the American Academy of Addiction Psychiatry's Provider Clinical Support Service-Opioids web - based training curriculum and motivational interviewing. 13. Support the development and dissemination of new curricula, such as the American Academy of Addiction Psychiatry's Provider Clinical Support Service for Medication -Assisted Treatment. B. SUPPORT PEOPLE IN TREATMENT AND RECOVERY Support people in treatment for and recovery from OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction through evidence -based, evidence -informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Provide the full continuum of care of recovery services for OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including supportive housing, residential treatment, medical detox services, peer support services and counseling, community navigators, case management, and connections to community -based services. 2. Provide counseling, peer -support, recovery case management and residential treatment with access to medications for those who need it to persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction. 2 Packet Pg. 129 2.4.b 3. Provide access to housing for people with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including supportive housing, recovery housing, housing assistance programs, or training for housing providers. 4. Provide community support services, including social and legal services, to assist in deinstitutionalizing persons with OUD and any co-occurring SUD/MH conditions, co - usage, and/or co -addiction. 5. Support or expand peer -recovery centers, which may include support groups, social events, computer access, or other services for persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction. 6. Provide employment training or educational services for persons in treatment for or recovery from OUD and any co-occurring SUD/MH conditions, co -usage, and/or co - addiction. 7. Identify successful recovery programs such as physician, pilot, and college recovery programs, and provide support and technical assistance to increase the number and capacity of high -quality programs to help those in recovery. 8. Engage non -profits, faith -based communities, and community coalitions to support people in treatment and recovery and to support family members in their efforts to manage the opioid user in the family. 9. Provide training and development of procedures for government staff to appropriately interact and provide social and other services to current and recovering opioid users, including reducing stigma. 10. Support stigma reduction efforts regarding treatment and support for persons with OUD, including reducing the stigma on effective treatment. C. CONNECT PEOPLE WHO NEED HELP TO THE HELP THEY NEED (CONNECTIONS TO CARE) Provide connections to care for people who have — or are at risk of developing — OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction through evidence - based, evidence -informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Ensure that health care providers are screening for OUD and other risk factors and know how to appropriately counsel and treat (or refer if necessary) a patient for OUD treatment. 2. Support Screening, Brief Intervention and Referral to Treatment (SBIRT) programs to reduce the transition from use to disorders. 3. Provide training and long-term implementation of SBIRT in key systems (health, schools, colleges, criminal justice, and probation), with a focus on youth and young adults when transition from misuse to opioid disorder is common. 3 Packet Pg. 130 2.4.b 4. Purchase automated versions of SBIRT and support ongoing costs of the technology. 5. Support training for emergency room personnel treating opioid overdose patients on post -discharge planning, including community referrals for MAT, recovery case management or support services. 6. Support hospital programs that transition persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, or persons who have experienced an opioid overdose, into community treatment or recovery services through a bridge clinic or similar approach. 7. Support crisis stabilization centers that serve as an alternative to hospital emergency departments for persons with OUD and any co-occurring SUD/MH conditions, co - usage, and/or co -addiction or persons that have experienced an opioid overdose. 8. Support the work of Emergency Medical Systems, including peer support specialists, to connect individuals to treatment or other appropriate services following an opioid overdose or other opioid-related adverse event. 9. Provide funding for peer support specialists or recovery coaches in emergency departments, detox facilities, recovery centers, recovery housing, or similar settings; offer services, supports, or connections to care to persons with OUD and any co- occurring SUD/MH conditions, co -usage, and/or co -addiction or to persons who have experienced an opioid overdose. 10. Provide funding for peer navigators, recovery coaches, care coordinators, or care managers that offer assistance to persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction or to persons who have experienced on opioid overdose. 11. Create or support school -based contacts that parents can engage with to seek immediate treatment services for their child; and support prevention, intervention, treatment, and recovery programs focused on young people. 12. Develop and support best practices on addressing OUD in the workplace. 13. Support assistance programs for health care providers with OUD. 14. Engage non -profits and the faith community as a system to support outreach for treatment. 15. Support centralized call centers that provide information and connections to appropriate services and supports for persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction. 16. Create or support intake and call centers to facilitate education and access to treatment, prevention, and recovery services for persons with OUD and any co- occurring SUD/MH conditions, co -usage, and/or co -addiction. 0 Packet Pg. 131 2.4.b 17. Develop or support a National Treatment Availability Clearinghouse — a multistate/nationally accessible database whereby health care providers can list locations for currently available in -patient and out -patient OUD treatment services that are accessible on a real-time basis by persons who seek treatment. D. ADDRESS THE NEEDS OF CRIMINAL -JUSTICE -INVOLVED PERSONS Address the needs of persons with OUD and any co-occurring SUD/MH conditions, co - usage, and/or co -addiction who are involved — or are at risk of becoming involved — in the criminal justice system through evidence -based, evidence -informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Support pre -arrest or post -arrest diversion and deflection strategies for persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including established strategies such as: a. Self -referral strategies such as the Angel Programs or the Police Assisted Addiction Recovery Initiative (PAARI); b. Active outreach strategies such as the Drug Abuse Response Team (DART) model; c. "Naloxone Plus" strategies, which work to ensure that individuals who have received naloxone to reverse the effects of an overdose are then linked to treatment programs or other appropriate services; d. Officer prevention strategies, such as the Law Enforcement Assisted Diversion (LEAD) model; e. Officer intervention strategies such as the Leon County, Florida Adult Civil Citation Network or the Chicago Westside Narcotics Diversion to Treatment Initiative; f. Co -responder and/or alternative responder models to address OUD-related 911 calls with greater SUD expertise and to reduce perceived barriers associated with law enforcement 911 responses; or g. County prosecution diversion programs, including diversion officer salary, only for counties with a population of 50,000 or less. Any diversion services in matters involving opioids must include drug testing, monitoring, or treatment. 2. Support pre-trial services that connect individuals with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction to evidence -informed treatment, including MAT, and related services. 3. Support treatment and recovery courts for persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, but only if these courts provide referrals to evidence -informed treatment, including MAT. 5 Packet Pg. 132 2.4.b 4. Provide evidence -informed treatment, including MAT, recovery support, or other appropriate services to individuals with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction who are incarcerated in jail or prison. 5. Provide evidence -informed treatment, including MAT, recovery support, or other appropriate services to individuals with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction who are leaving jail or prison have recently left jail or prison, are on probation or parole, are under community corrections supervision, or are in re-entry programs or facilities. 6. Support critical time interventions (CTI), particularly for individuals living with dual - diagnosis OUD/serious mental illness, and services for individuals who face immediate risks and service needs and risks upon release from correctional settings. 7. Provide training on best practices for addressing the needs of criminal -justice - involved persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction to law enforcement, correctional, or judicial personnel or to providers of treatment, recovery, case management, or other services offered in connection with any of the strategies described in this section. E. ADDRESS THE NEEDS OF PREGNANT OR PARENTING WOMEN AND THEIR FAMILIES, INCLUDING BABIES WITH NEONATAL ABSTINENCE SYNDROME Address the needs of pregnant or parenting women with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, and the needs of their families, including babies with neonatal abstinence syndrome, through evidence -based, evidence -informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Support evidence -based, evidence -informed, or promising treatment, including MAT, recovery services and supports, and prevention services for pregnant women — or women who could become pregnant — who have OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, and other measures to educate and provide support to families affected by Neonatal Abstinence Syndrome. 2. Provide training for obstetricians or other healthcare personnel that work with pregnant women and their families regarding treatment of OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction. 3. Provide training to health care providers who work with pregnant or parenting women on best practices for compliance with federal requirements that children born with Neonatal Abstinence Syndrome get referred to appropriate services and receive a plan of safe care. 4. Provide enhanced support for children and family members suffering trauma as a result of addiction in the family; and offer trauma -informed behavioral health treatment for adverse childhood events. 0 Packet Pg. 133 2.4.b 5. Offer enhanced family supports and home -based wrap -around services to persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including but not limited to parent skills training. 6. Support for Children's Services — Fund additional positions and services, including supportive housing and other residential services, relating to children being removed from the home and/or placed in foster care due to custodial opioid use. PART TWO: PREVENTION F. PREVENT OVER -PRESCRIBING AND ENSURE APPROPRIATE PRESCRIBING AND DISPENSING OF OPIOIDS Support efforts to prevent over -prescribing and ensure appropriate prescribing and dispensing of opioids through evidence -based, evidence -informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Training for health care providers regarding safe and responsible opioid prescribing, dosing, and tapering patients off opioids. 2. Academic counter -detailing to educate prescribers on appropriate opioid prescribing. 3. Continuing Medical Education (CME) on appropriate prescribing of opioids. 4. Support for non-opioid pain treatment alternatives, including training providers to offer or refer to multi -modal, evidence -informed treatment of pain. 5. Support enhancements or improvements to Prescription Drug Monitoring Programs (PDMPs), including but not limited to improvements that: a. Increase the number of prescribers using PDMPs; b. Improve point -of -care decision -making by increasing the quantity, quality, or format of data available to prescribers using PDMPs or by improving the interface that prescribers use to access PDMP data, or both; or c. Enable states to use PDMP data in support of surveillance or intervention strategies, including MAT referrals and follow-up for individuals identified within PDMP data as likely to experience OUD. 6. Development and implementation of a national PDMP — Fund development of a multistate/national PDMP that permits information sharing while providing appropriate safeguards on sharing of private health information, including but not limited to: a. Integration of PDMP data with electronic health records, overdose episodes, and decision support tools for health care providers relating to OUD. 7 Packet Pg. 134 2.4.b b. Ensuring PDMPs incorporate available overdose/naloxone deployment data, including the United States Department of Transportation's Emergency Medical Technician overdose database. 7. Increase electronic prescribing to prevent diversion or forgery. 8. Educate Dispensers on appropriate opioid dispensing. G. PREVENT MISUSE OF OPIOIDS Support efforts to discourage or prevent misuse of opioids through evidence -based, evidence - informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Corrective advertising or affirmative public education campaigns based on evidence. 2. Public education relating to drug disposal. 3. Drug take -back disposal or destruction programs. 4. Fund community anti -drug coalitions that engage in drug prevention efforts. 5. Support community coalitions in implementing evidence -informed prevention, such as reduced social access and physical access, stigma reduction — including staffing, educational campaigns, support for people in treatment or recovery, or training of coalitions in evidence -informed implementation, including the Strategic Prevention Framework developed by the U.S. Substance Abuse and Mental Health Services Administration (SAMHSA). 6. Engage non -profits and faith -based communities as systems to support prevention. 7. Support evidence -informed school and community education programs and campaigns for students, families, school employees, school athletic programs, parent - teacher and student associations, and others. 8. School -based or youth -focused programs or strategies that have demonstrated effectiveness in preventing drug misuse and seem likely to be effective in preventing the uptake and use of opioids. 9. Support community -based education or intervention services for families, youth, and adolescents at risk for OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction. 10. Support evidence -informed programs or curricula to address mental health needs of young people who may be at risk of misusing opioids or other drugs, including emotional modulation and resilience skills. 11. Support greater access to mental health services and supports for young people, including services and supports provided by school nurses or other school staff, to Packet Pg. 135 2.4.b address mental health needs in young people that (when not properly addressed) increase the risk of opioid or other drug misuse. H. PREVENT OVERDOSE DEATHS AND OTHER HARMS Support efforts to prevent or reduce overdose deaths or other opioid-related harms through evidence -based, evidence -informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Increase availability and distribution of naloxone and other drugs that treat overdoses for first responders, overdose patients, opioid users, families and friends of opioid users, schools, community navigators and outreach workers, drug offenders upon release from jail/prison, or other members of the general public. 2. Provision by public health entities of free naloxone to anyone in the community, including but not limited to provision of intra-nasal naloxone in settings where other options are not available or allowed. 3. Training and education regarding naloxone and other drugs that treat overdoses for first responders, overdose patients, patients taking opioids, families, schools, and other members of the general public. 4. Enable school nurses and other school staff to respond to opioid overdoses, and provide them with naloxone, training, and support. 5. Expand, improve, or develop data tracking software and applications for overdoses/naloxone revivals. 6. Public education relating to emergency responses to overdoses. 7. Public education relating to immunity and Good Samaritan laws. 8. Educate first responders regarding the existence and operation of immunity and Good Samaritan laws. 9. Expand access to testing and treatment for infectious diseases such as HIV and Hepatitis C resulting from intravenous opioid use. 10. Support mobile units that offer or provide referrals to treatment, recovery supports, health care, or other appropriate services to persons that use opioids or persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction. 11. Provide training in treatment and recovery strategies to health care providers, students, peer recovery coaches, recovery outreach specialists, or other professionals that provide care to persons who use opioids or persons with OUD and any co- occurring SUD/MH conditions, co -usage, and/or co -addiction. 12. Support screening for fentanyl in routine clinical toxicology testing. 0 Packet Pg. 136 2.4.b PART THREE: OTHER STRATEGIES I. FIRST RESPONDERS In addition to items C8, D1 through D7, HI, H3, and H8, support the following: 1. Current and future law enforcement expenditures relating to the opioid epidemic. 2. Educate law enforcement or other first responders regarding appropriate practices and precautions when dealing with fentanyl or other drugs. J. LEADERSHIP, PLANNING AND COORDINATION Support efforts to provide leadership, planning, and coordination to abate the opioid epidemic through activities, programs, or strategies that may include, but are not limited to, the following: 1. Community regional planning to identify goals for reducing harms related to the opioid epidemic, to identify areas and populations with the greatest needs for treatment intervention services, or to support other strategies to abate the opioid epidemic described in this opioid abatement strategy list. 2. A government dashboard to track key opioid-related indicators and supports as identified through collaborative community processes. 3. Invest in infrastructure or staffing at government or not -for -profit agencies to support collaborative, cross -system coordination with the purpose of preventing overprescribing, opioid misuse, or opioid overdoses, treating those with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, supporting them in treatment or recovery, connecting them to care, or implementing other strategies to abate the opioid epidemic described in this opioid abatement strategy list. 4. Provide resources to staff government oversight and management of opioid abatement programs. K. TRAINING In addition to the training referred to in various items above, support training to abate the opioid epidemic through activities, programs, or strategies that may include, but are not limited to, the following: 1. Provide funding for staff training or networking programs and services to improve the capability of government, community, and not -for -profit entities to abate the opioid crisis. 2. Invest in infrastructure and staffing for collaborative cross -system coordination to prevent opioid misuse, prevent overdoses, and treat those with OUD and any co- occurring SUD/MH conditions, co -usage, and/or co -addiction, or implement other 10 Packet Pg. 137 2.4.b strategies to abate the opioid epidemic described in this opioid abatement strategy list (e.g., health care, primary care, pharmacies, PDMPs, etc.). L. RESEARCH Support opioid abatement research that may include, but is not limited to, the following: 1. Monitoring, surveillance, and evaluation of programs and strategies described in this opioid abatement strategy list. 2. Research non-opioid treatment of chronic pain. 3. Research on improved service delivery for modalities such as SBIRT that demonstrate promising but mixed results in populations vulnerable to opioid use disorders. 4. Research on innovative supply-side enforcement efforts such as improved detection of mail -based delivery of synthetic opioids. 5. Expanded research on swift/certain/fair models to reduce and deter opioid misuse within criminal justice populations that build upon promising approaches used to address other substances (e.g. Hawaii HOPE and Dakota 24/7). 6. Research on expanded modalities such as prescription methadone that can expand access to MAT. 11 Packet Pg. 138 2.4.b Local County Government Adams County Adams County Hatton Lind Othello Ritzville % Allocation 0.1638732475% Washtucna County Total: 0.1638732475% Asotin County Asotin County 0.4694498386% Asotin Clarkston County Total: 0.4694498386% Benton County Benton County 1.4848831892% Benton City Kennewick 0.5415650564% Prosser Richland 0.4756779517% West Richland 0.0459360490% County Total: 2.5480622463% Chelan County Chelan County 0.7434914485% Cashmere Chelan _ Entiat _ Leavenworth _ Wenatchee 0.2968333494% County Total: 1.0403247979% Clallam County Clallam County 1.3076983401% Forks Port Angeles 0.4598370527% Sequim County Total: 1.7675353928% E *** - Local Government appears in multiple counties B-1 Packet Pg. 139 EXHIBIT B Local County Government % Allocation Clark County Clark County 4.5149775326% Battle Ground 0.1384729857% Camas 0.2691592724% La Center Ridgefield Vancouver 1.7306605325% Washougal 0.1279328220% Woodland*** Yacolt County Total: 6.7812031452% L 0 LL Columbia County c Columbia County 0.0561699537% 0 Dayton Q' .2 Starbuck County Total: 0.0561699537% R a 'o Cowlitz County Q p Cowlitz County 1.7226945990% — Castle Rock Kalama m E Kelso 0.1331145270% L Longview 0.6162736905% a Woodland*** c County Total: 2.4720828165% 0 a Douglas County Douglas County 0.3932175175% Bridgeport Coulee Dam*** r East Wenatchee 0.0799810865% a Mansfield Rock Island Waterville _ County Total: 0.4731986040% Ferry County Ferry County 0.1153487994% Republic County Total: 0.1153487994% *** - Local Government appears in multiple counties B-2 Packet Pg. 140 2.4.b Local County Government Franklin County Franklin County Connell Kahlotus Mesa Pasco Allocation 0.3361237144% 0.4278056066% County Total: 0.7639293210% Garfield County Garfield County 0.0321982209% Pomeroy County Total: 0.0321982209% Grant County Grant County 0.9932572167% Coulee City Coulee Dam*** Electric City Ephrata George Grand Coulee Hartline Krupp Mattawa Moses Lake 0.2078293909% Quincy Royal City Soap Lake Warden Wilson Creek County Total: 1.2010866076% E L 0 u. _ 0 R a .2 R IL 'o Q O c m E m L Q _ 0 �a 0 a a� E t 0 r Q *** - Local Government appears in multiple counties B-3 Packet Pg. 141 EXHIBIT B 2.4.b County Local Government % Allocation a Grays Harbor County Grays Harbor County 0.9992429138% Aberdeen 0.2491525333 % Cosmopolis Elma Hoquiam McCleary Montesano Oakville _Ocean Shores Westport County Total: 1.2483954471% Island County Island County 0.6820422610% Coupeville Langley Oak Harbor 0.2511550431% County Total: 0.9331973041% Jefferson County Jefferson County 0.4417137380% Port Townsend County Total: 0.4417137380% E *** - Local Government appears in multiple counties B-4 Packet Pg. 142 EXHIBIT B Local County Government % Allocation King County Algona Auburn*** 0.2622774917% Beaux Arts Village Bellevue 1.1300592573% Black Diamond Bothell*** 0.1821602716% Burien 0.0270962921% Carnation Clyde Hill Covington 0.0118134406% Des Moines 0.1179764526% ``0L c Duvall 0 Enumclaw*** 0.0537768326% ea 22- Federal Way 0.3061452240% Hunts Point a Issaquah 0.1876240107% o Kenmore 0.0204441024% p Kent 0.5377397676% Kirkland 0.5453525246% Lake Forest Park 0.0525439124% E Maple Valley 0.0093761587% L Medina a Mercer Island 0.1751797481% c Milton*** Newcastle 0.0033117880% a Normandy Park North Bend Pacific*** Redmond 0.4839486007% r Renton 0.7652626920% a Sammamish 0.0224369090% SeaTac 0.1481551278% Seattle 6.6032403816% Shoreline 0.0435834501% Skykomish Snoqualmie 0.0649164481% Tukwila 0.3032205739% Woodinville 0.0185516364% Yarrow Point County Total: 26.0505653608% *** - Local Government appears in multiple counties B-5 Packet Pg. 143 EXHIBIT B Local County Government Kitsap County Allocation a 2.6294133668% Bainbridge Island 0.1364686014% Bremerton 0.6193374389% Port Orchard 0.1009497162% Poulsbo 0.0773748246% County Total: 3.5635439479% Kittitas County Kittitas County 0.3855704683% Cie Elum Ellensburg 0.0955824915% Kittitas Roslyn South Cie Elum County Total: 0.4811529598% Klickitat County Klickitat County 0.2211673457% Bingen Goldendale _ White Salmon County Total: 0.2211673457% Lewis County Lewis County 1.0777377479% Centralia 0.1909990353% Chehalis Morton Mossyrock Napavine Pe Ell _ Toledo Vader Winlock County Total: 1.2687367832% 2.4.b E L 0 U. _ 0 R .2 R IL 'o Q O c m E m L Q _ 0 �a 0 a d E t 0 r Q *** - Local Government appears in multiple counties B-6 Packet Pg. 144 EXHIBIT B Local County Government % Allocation Lincoln Count Lincoln County 0.1712669645% Almira Creston Davenport Harrington Odessa Reardan Sprague Wilbur County Total: 0.1712669645% L 0 LL Mason County c Mason County 0.8089918012% 0 Shelton 0.1239179888% •L County Total: 0.9329097900% IL Okanogan County 'o Okanogan County 0.6145043345% CL p Brewster Conconully Coulee Dam*** m E Elmer City L Nespelem a Okanogan c Omak Oroville o - a Pateros Riverside _ — Tonasket Twisp — Winthrop _ a County Total: 0.6145043345% Pacific County Pacific County 0.4895416466% Ilwaco Long Beach Raymond South Bend County Total: 0.4895416466% *** - Local Government appears in multiple counties B-7 Packet Pg. 145 EXHIBIT B Local County Government % Allocation Pend Oreille County Pend Oreille County 0.2566374940% Cusick lone Metaline Metaline Falls Newport County Total: 0.2566374940% Pierce County Pierce County 7.2310164020% Auburn*** 0.0628522112% o Bonney Lake 0.1190773864% U. c Buckley Carbonado ea Q' .2 DuPont Eatonville a Edgewood 0.0048016791% o Enumclaw*** 0.0000000000% a O Fife 0.1955185481% Fircrest Gig Harbor 0.0859963345% E Lakewood 0.5253640894% L Milton*** a Orting c Pacific*** Puyallup 0.3845704814% a Roy Z.; Ruston South Prairie Steilacoom Sumner 0.1083157569% a Tacoma 3.2816374617% University Place 0.0353733363% Wilkeson County Total: 12.0345236870% San Juan County San Juan County 0.2101495171% Friday Harbor County Total: 0.2101495171% *** - Local Government appears in multiple counties B-8 Packet Pg. 146 EXHIBIT B Local County Government % Allocation Skagit County Skagit County 1.0526023961% Anacortes 0.1774962906% Burlington 0.1146861661% Concrete Hamilton La Conner Lyman Mount Vernon 0.2801063665% Sedro-Woolley 0.0661146351% County Total: 1.6910058544% L O U. Skamania County c Skamania County 0.1631931925% 0 North Bonneville Q' .2 Stevenson County Total: 0.1631931925% R a 'o Snohomish County Q p Snohomish County 6.9054415622% — Arlington 0.2620524080% Bothell*** 0.2654558588% m E Brier L Darrington a Edmonds 0.3058936009% c Everett 1.9258363241% Gold Bar o a Granite Falls Index Lake Stevens 0.1385202891% Lynnwood 0.7704629214% r Marysville 0.3945067827% a Mill Creek 0.1227939546% Monroe 0.1771621898% Mountlake Terrace 0.2108935805% Mukilteo 0.2561790702% Snohomish 0.0861097964% Stanwood Sultan Woodway _ County Total: 11.8213083387% *** - Local Government appears in multiple counties B-9 Packet Pg. 147 EXHIBIT B Local County Government % Allocation Spokane County Spokane County 5.5623859292% Airway Heights Cheney 0.1238454349% Deer Park Fairfield Latah Liberty Lake 0.0389636519% Medical Lake Millwood Rockford Spangle Spokane 3.0872078287% Spokane Valley 0.0684217500% Waverly County Total: 8.8808245947% Stevens Count Stevens County 0.7479240179% Chewelah Colville Kettle Falls Marcus Northport Springdale County Total: 0.7479240179% Thurston Count Thurston County 2.3258492094% Bucoda Lacey 0.2348627221% Olympia 0.6039423385% Rainier Tenino Tumwater 0.2065982350% Yelm County Total: 3.3712525050% Wahkiakum County Wahkiakum County 0.0596582197% Cathlamet County Total: 0.0596582197% *** - Local Government appears in multiple counties B-10 Packet Pg. 148 EXHIBIT B Local County Government % Allocation Walla Walla County Walla Walla County 0.5543870294% College Place Prescott Waitsburg Walla Walla 0.3140768654% County Total: 0.8684638948% Whatcom County Whatcom County 1.3452637306% Bellingham 0.8978614577% Blaine o LL Everson c Ferndale 0.0646101891% 0 Lynden 0.0827115612% •L Nooksack Sumas a County Total: 2.3904469386% o .Q O Whitman County — Whitman County 0.2626805837% Albion m E Colfax L Colton a Endicott 0 Farmington Garfield o a LaCrosse Lamont Malden Oakesdale Palouse a Pullman 0.2214837491% Rosalia St. John Tekoa County Total: 0.4841643328% *** - Local Government appears in multiple counties B-11 Packet Pg. 149 EXHIBIT B Local County Government % Allocation Yakima County Yakima County 1.9388392959% Grandview 0.0530606109% Granger Harrah Mabton M oxee Naches Selah Sunnyside 0.1213478384% Tieton Toppenish Union Gap ``0L c Wapato Yakim .6060410539% R •L Zillah County Total: 2.7192887991% a 'o Q O c m E m d L tM a _ R c.i a E a *** - Local Government appears in multiple counties B-12 Packet Pg. 150 2.4.b • • E L O LL C O m Exhibit C a- m a .o Q O Q Packet Pg. 151 2.4.b KING COUNTY REGIONAL AGREEMENT King County intends to explore coordination with its cities and towns to facilitate a Regional Agreement for Opioid Fund allocation. Should some cities and towns choose not to participate in a Regional Agreement, this shall not preclude coordinated allocation for programs and services between the County and those cities and towns who elect to pursue a Regional Agreement. As contemplated in C.5 of the MOU, any Regional Agreement shall comply with the terms of the MOU and any Settlement. If no Regional Agreement is achieved, the default methodology for allocation in CA of the MOU shall apply. E L O U. C O R Q ..2 L R IL 'o Q O Packet Pg. 152 2.5 City Council Agenda Item Meeting Date: 07/16/2024 Financial Policies Staff Lead: Mike Bailey Department: Administrative Services Preparer: Kimberly Dunscombe Background/History Upon reviewing the Finance Committee's comments from the May meeting, several recommended edits were made to the draft policies for further consideration. The proposed policies are intended for a "long-term / normal" context within the City, but deviations may occur during fiscal emergencies. The mayor's proposed budget will identify any deviations from the Council's adopted policies. Key points discussed: 1. Reserve Levels and Credit Ratings: The bond rating agencies consider both policy target levels and a city's track record regarding reserve levels. For instance, a policy floor of 12% of expenditures in utility funds, along with a history of maintaining higher reserves, is viewed positively. 2. Timing of Budget Amendments: The draft policy does not currently address the timing of budget amendments. This could be added if the committee believes it would clarify expectations and procedures. 3. Fiscal Note on Council Agenda Memos: The Blue Ribbon Panel suggested including a standing fiscal note on each Council Agenda Memo where appropriate. This recommendation has not yet been incorporated but could be easily added to the policy draft if Council agrees. Staff Recommendation Staff recommends forwarding to the next Council meeting's consent agenda. Narrative Financial Policies were reviewed and discussed at the May Finance Committee. Committee members made recommendations which were captured in this revision. Attachments: Draft Financial Policies for City of Edmonds Council Consideration as of July 5 Packet Pg. 153 2.5.a �1R."IaI City of Edmonds Washington - Financial Policy Framework Contents FinancialReporting Policy............................................................................................................2 .. w a� Annual Financial Reports..........................................................................................................2 Interim Financial Reports..........................................................................................................2 a Mid -year Financial Review.........................................................................................................3 0 CU Fund Balance Reserve Policy........................................................................................................3 = ii Introduction.............................................................................................................................3 LO 21 Goals of the Fund Balance Reserve Policy.................................................................................4 Fund Balance Reserve Policy....................................................................................................4 0 N Objectives...............................................................................................................................4 = 0 Factors that Influence the Appropriate Size of Reserves.............................................................5 L Reserve Levels for City Major Operating Funds...........................................................................5 a� 2 c Utilization of Fund Balances and Reserves 5 0 Fund Balance and Reserve Replenishment................................................................................6 Interfund Loan Policy 6 0 Long Term Interfund Loans........................................................................................................6 0 Short -Term Debt Policies...........................................................................................................7 E Budget Policy7 w Purpose...................................................................................................................................7 •— U References...............................................................................................................................7 0 OperatingBudget Policy.......................................................................................................... d .2 Long Range Financial Strategy...................................................................................................9 0 a RevenuePolicy.........................................................................................................................9 0 ExpenditurePolicy..................................................................................................................10 U C CU Glossary....................................................................................................................................10 w Packet Pg. 154 2.5.a City of Edmonds — Financial Policy Framework Financial Reporting Policy Annual Financial Reports The City shall use the Washington State Auditor's Office (SAO) guidance to publish an Annual N Comprehensive Financial Report (ACFR) consistent with Generally Accepted Accounting Principles and the SAO's current Budgeting, Accounting and Reporting Systems (BARS) manual. a Such report shall be prepared and submitted to the SAO within the timelines prescribed by the 20 BARS manual (currently May 30 of each year). The City shall schedule an audit of the report on a timely basis (no later than mid -year, depending on the SAO's availability to complete the audit). ii The report shall be published on the City's web page once submitted to the SAO and marked LO "unaudited" until such time as the annual audit is complete. Once the audit is complete an "exit 2' conference" shall be conducted with City leadership and City Council shall be invited to attend the 3 exit conference with SAO personnel. Once the exit conference occurs, the final, audited ACFR 4 ° shall be posted on the City's website and marked "audited". N Interim Financial Reports Interim financial reports of all funds of the City shall be presented to the Council Finance Committee (Committee) each month on a timely basis (preferably in the month following the month subject to the report). Such reports shall: 1. Identify any issues or items of note on the cover page 2. Provide the beginning fund balance, revenues, expenditures and ending fund balance on a modified accrual basis for all funds of the City. a. For purposes of the proprietary funds, fund balance shall be the working capital (current assets minus current liabilities). b. For purposes of the governmental funds, fund balance shall begin with the published ending fund balance from the prior fiscalyear (including accruals but not reversal entries (aka: period zero) so as to approximate modified accrual). 3. Provide the unreserved and reserved cash balances for all City funds. 4. Indicate any interfund borrowing necessary to maintain positive cash balances in a manner consistent with the City's interfund loan policy. 5. Year-to-date status of all major fund revenue and expenditures of the City (major funds are those where expenditures represent at least 10 percent of the City's total expenditures). a. Such information shall be presented in both numeric and graphic form and illustrate a comparison with monthly forecast expectations. b. All departments of the City's General Fund and Enterprise Funds shall be presented in like manner. 6. A cash -flow report for the General Fund illustrating anticipated receipts and disbursements for each future month and the actual receipts and disbursements for past months. 7. Project reports shall be presented on major projects (both operating and capital projects) previously identified by the Committee. 8. Investment balances along with year-to-date interest earnings. Page 2 Packet Pg. 155 2.5.a City of Edmonds — Financial Policy Framework Mid -year Financial Review A review of City financial highlights shall occur approximately in the middle of the City's fiscal year. Such a review shall be provided to the full City Council and shall include: 1. A review of the prior year's audit including: a. Any findings or management letters presented to the City by the SAO, b. The Audit Opinions provided to the City by the SAO, t2 c. Any changes or adjustments made to the published, unaudited financial reports o a made due to audit. 20 2. A review of the current biennial budget to date including: a. Any updates to beginning fund balances as a result of audit, b. Biennium -to -date budgetary performance of major revenues and expenditures compared to expectations including any resulting budget amendment O 21 recommendations. (For example, if revenues are below expectations a 3 recommendation could be made to adjust budget authority). o c. The status of any interfund loans consistent with the City's Interfund Loan Policy. 3. A preview of the future budgetary expectations. 0 a. In an odd -numbered year, the preview will focus on the upcoming mid -biennium L review. m b. In an even -numbered year, the preview will focus on the upcoming biennial budget w process. c. The preview will include: i. Expectations for revenue trends and the underlying issues that influence the expectations. If changes to rates or fees are anticipated, they shall be part of this discussion. ii. Expectations for expenditures in the coming fiscal period and the underlying issues influencing these expectations. iii. A draft calendar for the upcoming process (either mid -biennium review or biennial budget process). iv. An update to the long-range financial plan as appropriate along with relevant assumptions. Fund Balance Reserve Policy Introduction The overall objective of Fund Balance Reserve Policy is to define that portion of fund balance that is unavailable to support the current budget. In many ways, fund balance represents working capital, which can either be used as a liquidity reserve or for spending in future years. A comprehensive fund balance reserve policy provides guidelines for the major funds of the City of Edmonds and provides a structured approach in setting reserve levels in specifically designated funds. It is financially prudent for Edmonds to retain a modest level of unrestricted/uncommitted working capital in addition to explicitly defined reserve levels identified in this policy to address unforeseen expenditure needs each budget cycle. Page 3 Packet Pg. 156 2.5.a City of Edmonds - Financial Policy Framework This Fund Balance/Reserve Management Policy is intended to guide prudent use of resources to provide for services to taxpayers and to maintain sound management policies. It is essential that governments maintain adequate levels of fund balance reserves to mitigate risks and provide a back-up for unanticipated revenue shortfalls or expenditures. m .2 Goals of the Fund Balance Reserve Policy a The goals of this Fund Reserve Policy are to provide clear guidance for the appropriate level of Fund 20 Balance Reserve for our city; set reporting and monitoring requirements, define the appropriate triggering warning mechanism when approaching reserve usage, set Council approval before the ii Restricted Reserve can be used, define replenishment timeline and requirements, and that LO uncommitted fund balances should not be spent down to the ceiling of the General Fund reserve 21 3 level. Fund Balance Reserve Policy It is the policy of the City of Edmonds to provide forthe continuity of City government by planning ahead for economic uncertainties and unforeseen or unplanned major expenditures. This policy establishes reserve fund balance accounts that will provide fundingfor emergencies, economic uncertainties and for unanticipated operating expenses or revenue shortfalls. In addition, this policy incorporates the provisions of Governmental Accounting Standards Board Statement (GASB) no. 54, Fund Balance Reporting and Governmental Fund Type Definitions. Objectives The purpose of this Fund Balance Reserve Policy is to assist the City in the pursuit of the following equally important objectives: 1. Build adequate reserves which will provide the City the resources necessary for financial stabilization, particularly duringtimes of unforeseen emergencies and economic downturns. 2. Establish sound fiscal reserve policies that will serve as the foundation for ensuring that strong fiscal management policies guide future City decisions. 3. Provide prudent guidelines regarding the establishment, use and replenishment of City committed or assigned fund balances reserves. 4. Establish a process for periodic reporting and review of the City's various fund balances (reserves); and 5. Enhance the City's credit ratings received from rating institutions through the establishment of clearly delineated Fund/Reserve policies that promote strong fiscal management. 6. Establish reserve policies that are in full compliance with GASB 54 financial reporting requirements. that prioritize the City's core services. Page 4 Packet Pg. 157 2.5.a City of Edmonds — Financial Policy Framework Factors that Influence the Appropriate Size of Reserves Volatility- The predictability and/or the volatility of its revenues or its expenditures (i.e., higher levels of fund balance reserves may be needed if significant revenue sources are subject to unpredictable fluctuations or if operating expenditures are highlyvolatile). m Oaerating Fund Size - The overall size of the fund's budgetary events should be taken into consideration in setting the required fund balance reserve level and type for a particular fund. o a Reserves as a Risk Management Tool — Reserve levels can vary if there significant or perceived exposure to one-time outlays (e.g., disasters, immediate capital needs, or are there potential drains c upon fund resources from other funds, or conversely, are there potential reductions in funding transfers from other funds)? "' a Bond Ratings - The potential impact on the entity's bond ratings and the corresponding increased cost of borrowed funds. Reserve Levels for City Major Operating Funds General Fund —The General Fund Unassigned Fund Balance is set at 16% of annual operating expenditures as portrayed by the City's adopted budget. Contingent Reserve Fund (consistent with RCW 35A.33.145)—The Contingent Reserve Fund's purpose is to serve solely as an unassigned fund balance which shall be equal to 4% of the annual General Fund operating budget expenditures. Water Utility Fund —The budgeted Working Capital Balance is set at 12% of annual operating budget expenditures. Sewer / Wastewater Treatment Plan Fund - The budgeted Working Capital Balance is set at 12% of annual operating budget expenditures. Utilization of Fund Balances or Reserves The Mayor has the power to declare a fiscal emergency based upon one of the following: 1) A natural catastrophe. 2) An immediate threat to health and public safety; or 3) Asignificant decline in General Fund revenues. Or 4) Unexpected expenditures that outpaced General Fund revenue. Council shall be notified of any fiscal emergency declared by the Mayor within 30 days of such declaration. The fiscal emergency declared by the Mayor must be approved by a simple majority of the City Council in a timely fashion. Note: if the mayor is unable to act or refuses to act to declare a fiscal emergency when any one of these conditions are present, City Council may declare a fiscal emergency by a simple majorityvote. Uses of Fund Balances or Reserves stipulated as minimum balances by this policy shall have occurred when expenditures are authorized via an appropriation of the council. Incidental use of available fund balances (Governmental Funds) or reserves (Enterprise Funds) for incidental cash -flow shall not constitute a "utilization of Fund Balances or Page 5 Packet Pg. 158 City of Edmonds - Financial Policy Framework Reserves" under this. Incidental use shall not exceed $5 million or be for more than 60 days without prior council approval. Limitations of Fund Balance or Reserve Fund Use m Any use of the fund balances or reserves below the stipulated policy levels shall be only in .2 cases of fiscal emergency and shall not be used to augment ongoing budgetary/operating ° a spending increases. Fund Balances or Reserves above the stipulated policy levels may also be used forone-time non-reoccurringexpenditures and/orcapital projects (operations and maintenance shall not be included), consistent with the Budget Policy as submitted by the Mayor and approved by the Council. The amount of funds to be withdrawn from this committed fund balance reserve shall be determined by the Mayor subject to City Council approval. In his/her presentation to the Council, the Mayor or his/her designee shall include a detailed list of how the funds will be applied. A simple majorityvote of the Council shall be required to approve the amount and use of funds. Fund Balance and Reserve Replenishment In the event of use of any of the stipulated Fund Balances or Reserves has occurred, the Mayor shall present to the City Council an annual Replenishment Plan within 60 days, as well as an element of each monthly interim financial report until the stipulated balances are restored. The monthly interim financial report shall clearly presentthe amount that any Fund Balance or Reserve accounts are belowthe levels stipulated bythis policy. The initial Replenishment Report must include the following information: 1) Amount of Reserves used; 2) Whether it is anticipated additional Reserves will be needed in the following budget cycle, and 1) A plan for replenishing the Reserve to policy mandated levels. Interfund Loan Policy Long Term Interfund Loans The City may issue interfund loans rather than outside debt instruments as a means of financing capital improvements. Interfund loans will be permitted only if an analysis of the affected accounting fund indicates excess funds (e.g. cash and investments) are available and the use of these funds will not impact the fund's anticipated operations. All long-term interfund borrowing will be subject to prior approval by the City Council and will bear interest based upon rates of the Local Government Investment Pool of the Washington State Treasurer's Office (the Pool). Upon consideration of a reauest to Council to authorize an interfund loan. the reauest shall include an estimate as to the anticipated length of the loan. Page 6 Packet Pg. 159 City of Edmonds — Financial Policy Framework The decision to use interfund loans rather than outside debt will be based on which is deemed to be the most cost effective approach to meet city capital needs. Such assessment shall include an assessment as to the ability of the lending fund to provide such resources without an impact on its operations and should be reviewed by the City's Municipal Advisor who shall provide an objective analysis and recommendation to the City Council prior to their consideration of such a loan. Short -Term Debt Policies Short-term debt is defined as a period of three one years or less. The City may use short-term debt to cover temporary cash flow shortages, which may be caused by a delay in receipt of tax revenues or issuing long-term debt. The City will not use short-term debt as a substitute for revenues to finance current operations. All interfund short-term borrowing will be reported in the monthly financial reports of the City in accordance with the Interim Financial Reports Policy and will bear interest based upon prevailing rates of the Pool. Council reserves the right to reverse the use of short-term interfund loans at its discretion. Use of short-term, interfund borrowing for temporary cash flow shortages do not, in and of itself constitute a use of Fund Balances or Reserves under that policy. Budget Policy Purpose The purpose of the budget policy for the City of Edmonds is to establish a robust financial foundation that supports the continuation of essential municipal services while ensuring the social welfare and upkeep of the city's physical infrastructure. This policy aims to fortify the city's resilience against local and regional economic challenges, enabling it to adapt to evolving service demands and other community -related changes. By maintaining an outstanding credit rating, the city government aims to instill confidence in taxpayers regarding the fiscal health and stability of Edmonds. Furthermore, the budget policy seeks to address the needs ofj: • Future Current and future generations within the Edmonds community, • Those in our communitywho are less able to be proactively involved in shaping government policy while, • emphasizing a forward -looking approach to financial planning and resource allocation. This policy shall apply to all City funds. References • GFOA Best Practices Adopting Financial Policies • SAO Top 12 most important financial policies • MRSC Financial Policies Overview Page 7 m 02 a �a _ ii Packet Pg. 160 2.5.a City of Edmonds - Financial Policy Framework Operating Budget Policy The operating budget serves as the cornerstone of the City of Edmonds' financial strategy, embodying a comprehensive two-year plan that aligns with the city's priorities as approved by the City Council to deliver essential services. Developed biennially, this budget framework encapsulates the municipality's vision and commitment to meeting the needs of its residents. The budget policy helps to ensure transparency, efficiency, and effectiveness in fiscal a° management. 1. The goals of the budget process are to: o Align the budget with adopted priorities of the City Council, o Measure progress towards priorities, o Get the best value for each tax dollar, and "' o Foster continuous learning in the City. 2. The operating budget should reflect sustainable levels of service. 2-.1. The city's operating budget will not use one-time resources for on- going operations without a clear source for future support of the operations. 3-.2. "One-time" expenses require specific authority to be carried forward into subsequent budgets (i.e. no automatic "roll-over" of appropriations). 43. Revenues and expenditures for the General Fund and all major operating funds shall be projected for the current biennium and the ensuing four years. a. Such projections shall be supported by documentation of assumptions used to develop the forecasts. b. Alternative forecasts may be presented. 5-.4. The biennial operating budget should include any maintenance and operating costs associated with completed capital projects. 6-.5. The city will maintain omits assets at a level that protects the City's capital investment and minimizes future maintenance and replacement costs. The city's asset profile shall be consistent with the Capital Facilities Plan element of the Comprehensive Plan. 7-.6. The city will maintain an equipment replacement and maintenance needs analysis for the life cycle of the equipment and will update this projection every two years consistent with budget development. &7. All general government current operating expenditures will be paid from current revenues. a. Any inability to support operations from current revenues shall be specifically identified in the Mayor's proposed budget. 9 8. The city will avoid budgetary and accounting procedures which balance the current budget at the expense of future budgets. +E)-.9. The City of Edmonds defines a balanced budget as current biennium budgeted revenues (including fund balances) being equal to or greater than current biennium budgeted expenditures. +1710. The City further defines a structurally balanced budget as recurring budgeted revenues (excluding fund balances) being equal to or greater than recurring budgeted expenditures. +2-.11. All supplemental appropriation requests for programs following the adoption of the original budget will be considered based on need and the availability of a new funding Page 8 Packet Pg. 161 City of Edmonds — Financial Policy Framework 2.5.a source (e.g., unanticipated grant). All supplemental appropriations will conform to the same rigors as the budget process for the biennium. +3-.12. Budget Calendar a. The Mayor will propose a biennial budget calendar by the first regular City Council business meeting in April in every even year. b. The calendar will be comprehensive in nature and generally provide for a process that resembles the Best Practices for municipal budgets as published by the Government Finance Officers Association. Long Range Financial Strategy The Council shall develop a forward -looking outline of policy preferences for City fiscal resiliency to be known as the "Long -Range Financial Strategy" (the Strategy). Such a strategy shall address policy guidance for revenues, operating expenditures and capital projects to be used by the Mayor in developing budget proposals and related actions to be considered for adoption by the City Council. Initially the strategy should bed eve Loped in anticipation of the 2025-26 biennium budget and Capital Improvement Program. The Strategy shall also be the basis for developing financial forecasts and any recommendations regarding significant revenue increases. Revenue Policy In our commitment to financial stability and resilience, the City of Edmonds adopts a proactive approach to revenue management. Central to this approach is the recognition of the inherent volatility associated with individual revenue streams. Thus, our revenue policy emphasizes the importance of maintaining a diversified revenue mix. By spreading risk across various sources of income, the city aims to mitigate the impact of short-term fluctuations in any single revenue stream. This strategic diversification not only safeguards against economic uncertainty but also ensures the sustained funding necessary to support vital municipal services and initiatives. 1. As permitted by state law, the city will strive to maintain a diversified revenue mix, encompassing elastic and inelastic revenues, to help manage the downside risks associated with economically sensitive revenue sources and to keep pace with expenditure growth. To pursue this policy goal, the City Council will consider revenue changes as part of its review of the City's Long Range Financial Strategy each biennium. 2. To minimize the impact of an economic downturn on service levels, conservative revenue estimates will be developed for economically sensitive revenue sources. For this purpose, conservative shall mean that actual revenues are more likely to be greater than the estimate rather than less. 3. The city will estimate its biennial revenues by an objective, analytical process using best practices as defined by the Government Finance Officers Association. Economic assumptions will be influenced by reliable and relevant sources such as the Washington State Economic and Revenue Forecast Council and the King County Office of Economic and Financial Analysis. 4. The city will project revenues for the next six years and will update this projection biennially. Page 9 m .2 0 a �a _ Packet Pg. 162 2.5.a City of Edmonds — Financial Policy Framework 5. The Finance Department will present to the City Council an analysis of each potential major revenue source as part of the biennial budget process. 6. The City will refrain from making budgetary decisions (specifically allocating resources to be expended) outside of the biennial budget process or the formal budget amendment process. Go Budget amendments will provide a description of the overall impact of the proposed m amendment on the fund's ability to remain structurally balanced in the future. 0 7. The City will establish all user charges after considering the full cost of providing the service a and within policy parameters with regard to cost recovery goals established by the City Council. _ �a 8. In each odd numbered year, the city will review user fees to adjust for the effects of inflation = ii and other factors as appropriate. Expenditure Policy The city's financial policy ensures strict adherence to all relevant regulations governing expenditure transactions while also prioritizing forward -looking forecasting methodologies. By evaluating projected expenditures, we aim to gauge our city's capacity to fulfill performance metrics and effectively address the evolving needs of our community, fostering transparency and fiscal responsibility. 1. The City's operating budget will not use one-time revenues to support ongoing expenditures. 2. The City will maintain expenditure categories according to state statute and administrative regulation. Capital expenditures shall meet the requirements of generally accepted accounting principles (GAAP). 3. The City will forecast its General Fund expenditures biennially for the next six years. The drivers and assumptions used in the forecast will be described. 4. A cost allocation plan will be maintained and updated as a part of each City budget. The cost allocation plan will be the basis for distribution of general government costs to other funds or capital projects (also known as indirect costs). Such plan will be incorporated into the City's budgeting process and subject to City Council review. Glossary Annual Comprehensive Financial Report (ACFR)- A set of financial statements for a state, municipality or other governmental entity that comply with the accounting requirements established by the Governmental Accounting Standards Board (GASB). It must be audited by an independent auditor using generally accepted government auditing standards. The ACFR consists of three sections: Introductory, Financial and Statistical. The Introductory section orients and guides the reader through the report. The Financial section presents the entity's basic financial statements as well as notes to the statements and the independent auditors' report. The Statistical section provides additional financial and statistical data, including data about financial trends that may better inform the reader about the government's activities. Page 10 Packet Pg. 163 2.5.a City of Edmonds — Financial Policy Framework Balanced Budget - Fund balance plus budgeted revenues is equal to or greater than budgeted expenditures. Budget - A plan of financial operation containing an estimate of proposed expenditures fora given period and a proposed forecast of revenues (receipts) to cover them. A budget is also a plan that outlines an organization's financial and operational goals and strategies in monetary terms. a 20 Capital Expenditures are expenditures incurred when monies are spent eitherto buyfixed = assets orto add to the value of an existing fixed asset with a useful life that extends beyond the fiscal year. In accounting, a capital expenditure is added to an asset account ("capitalized"), thus increasingthe asset's basis (the cost orvalue of an asset). The general LO, rule isthat if the property acquired has a useful life longerthanthe time stipulated by policy, the cost must be capitalized. The capital expenditure costs are then amortized or o N depreciated over the life of the asset in question in full accrual accounting systems. Council - Means the legislative body (the city council) that governs the City of Edmonds Expenditure - The actual payment of cash or cash equivalent for goods delivered or services rendered, or a charge against available funds in settlement of an obligation as evidenced by an invoice, voucher or other such document during the fiscal year. For governmental reporting purposes, expenditures include expenses or a provision for debt retirement not reported as a liability of the fund from which retired. Fiscal Year - A 12 month period to which the annual or biennial operating budget applies and the end of which a governmental unitdetermines itsfinancial position and the results of its operations. In Washington State, Citys use a January to December fiscal year. Regardless of whether annual or biennial budget is used, the Fund Balance Reserve and Contingency Fund Reserve are reviewed on an annual basis. Fund - A fund is a self -balancing set of accounts recording cash and other financial resources, together with all related liabilities and "residual" equity or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain planned objectives in accordance with special regulations, restrictions or limitations. Fund Balances -The overall objective of fund balance reporting is to isolate that portion of a fund balance that is unavailable to support the following period's budget (see GASB 54 definition below). In general, an unassigned fund balance shall be defined as those amounts that are not restricted, committed, or assigned, of a particular fund at the end of the fiscal year. GASB 54 - Fund Balance Reporting and Governmental Fund Type Definitions - The City of Edmonds's ACFR Financial Statements are required to comply with GASB 54 as Page 11 Packet Pg. 164 City of Edmonds - Financial Policy Framework 2.5.a stipulated by the Washington State Auditor's Office. GASB 54 identifies fund balance classifications that can be more consistently applied by clarifying existing governmental fund type definitions. Fund balance is the difference between the assets and liabilities reported in a fund. GASB statement No. 54 provides the following five categories for classifying fund balance and related definitions to be used for describing the components of fund balance: 1. Nonspendable Fund Balance Amounts that are not in a spendable form or are required to be maintained intact. Due to the nature or form of the resources, they generally cannot be expected to be converted into cash or a spendable form (e.g. Inventories and prepaid amounts). This also includes long-term loan and notes receivable and property held for resale. Applies as well to amounts that must be retained intact legally or contractually. 2. Restricted Fund Balance - Amounts that can be spent only for the specific purposes stipulated. Constraints are placed on the use of resources by external parties (e.g. by creditors, grant providers, contributors) or by laws or regulations (e.g. constitution or legally enforceable language). Restrictions may be changed or lifted onlywith the consent of the resource provider. 3. Committed Fund Balance - Amounts can only be used for the specific purposes determined by a formal action of City Council. Constraints on fund balance use are imposed by internal. formal action of the government's highest Level of decision -making authority (e.g. City Council) and can only be removed or changed by taking the same type of action it employed to commit those amounts through legislation, resolution, or ordinance (e.g. funds committed to satisfy contractual obligations). Action to constrain resources must occur prior to year-end; however the amount can be determined in the subsequent period. 4. Assigned Fund Balance - Assigned fund balances include amounts that are limited bythe Council, Mayor, or his/her designee, forits intended use, but little or no formal action is required to modify or eliminate those limitations. Assigned fund balances comprises amounts intended to be used for a specific purpose. Amounts reported as assigned should not result in a deficit in unassigned fund balance. Also relates to all governmental funds otherthan the General Fund, with any remaining positive amounts not classified as nonspendable, restricted or committed. 5. Unassigned Fund Balance - Comprises the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are available for any purpose. This represents the residual amount of the fund balance that has not been restricted, committed, or assigned. General Fund - In public sector accounting, the General Fund is the primary operating fund for all revenues of the Citythat are not otherwise restricted as to their use, including Page 12 m .2 0 a �a _ ii Packet Pg. 165 2.5.a City of Edmonds — Financial Policy Framework monies from local property and sales tax, and other revenue sources that are not assigned for a specific purpose. The General Fund provides the resources necessary to pay/sustain the day-to-day activities for City services such as administration, community services, parks and recreation, police, fire, public works, elected officials, Mayor, and City Council. m Government Accounting Standards Board (GASB) - GASB is the private, nonpartisan, a nonprofit organization that works to create and improve the rules U.S. state and local 20 governments follow when accounting for their finances and reporting them to the = public. While the GASB does not have the power to enforce compliance with the standards it promulgates, the authority for its standards is recognized under the Rules v of Conduct of the AICPA. Also, legislation in many states requires compliance with O 21 GASB standards, and governments usually are expected to prepare financial statements in accordance with those standards when they issue bonds or notes or o otherwise borrow from public credit markets. In Washington, state law delegates this authority to the Washington State Auditor's Office who prescribes accounting and c C reporting standards for cities. Operating Budget - A detailed projection of all estimated income and expenses based on forecasted revenue duringa given period (usually one year). Revenue - The income of a government from all sources appropriated for the payment of the public expenses. It includes such items as tax payments, fees from specific services, receipts from other governments, fines, forfeitures, grants, shared revenues and interest income. Structurally Balanced Budget - Budgeted recurring revenues are greater than budgeted recurring expenditures in the biennium. Structural Budget Deficit or "Gap" - A budget deficit (Gap) that results from a fundamental imbalance whereby current year governmental expenditures exceed current year revenues without any consideration of carryover or prior year unspent revenue balances if they exist. A structural deficit remains across the operating fiscal cycle because the general level of government spending is too high for the prevailing revenue structure (e.g., taxes, fees and other sources). A fiscal Gap, is a structural budget deficit over an extended period of time and not only includes the structural deficit at a given point in time but also the difference between promised future government commitments, such as health and retirement spending, and future planned or anticipated tax and other revenues. Page 13 Packet Pg. 166 2.6 City Council Agenda Item Meeting Date: 07/16/2024 June 2024 Quarterly Financial Report Staff Lead: Kim Dunscombe Department: Administrative Services Preparer: Sarah Mager Background/History N/A Staff Recommendation Review and move to full council to be received for filing. Narrative June 2024 Quarterly Financial Report Attachments: Complete June 2024 Quarterly Financial Report Packet Pg. 167 I 2.6.a I O-V U~ ED 70 :!10 d CITY OF EDMONDS QUARTERLY BUDGETARY FINANCIAL REPORT JUNE 2024 Packet Pg. 168 1 I 2.6.a I MONTHLY HIGHLIGHTS GENERAL FUND HIGHLIGHTS • Real Personal/Property Tax and EMS Levy is up $307,008 from this point last year. Despite this current good news, our forecast for property tax will likely finish under budget by $(130,000). • Sales tax is up $142,686 from this point last year, and is right on target for the cumulative budget forecast. Our forecast indicates this revenue source to be close to or slightly under budget. • Utility taxes are categorized under "Other Taxes" in the chart below, exhibit divergent trends, with some surpassing the cumulative budget while others lag behind. Notably, gas tax from Puget Sound Energy is down by $(113,486) falling short of their perspective cumulative budget. • Development services revenues overall are up a total of $365,621 from this point last year. The increase is notably due to the city receiving permit revenue for development of the Edmonds Green Apartments. • Interest charged to the General Fund for negative cash balance in 2024 equals $33,452 to date. • There is a noticeable uptick in salaries and benefits for May. This increase is attributed to retroactive payments and salary adjustments resulting from a new collective bargaining agreement for the same bargaining unit. General Fund Tax Revenue (2024 YTD) 14,000, 000 12,000,000 10,000,000 8,000,000 X 6,000,000 a 4,000,000 — 2,000,000 ■ Sales Tax Property Tax EMS Tax Other Taxes Actual 5,681, 383 6,101,108 2,333,156 4,453,487 0 Budget 12,300,000 11,327,000 4,578,000 9,229,949 STREET FUND HIGHLIGHTS • Interest charged to the Street Fund for negative cash balance in 2024 equals $11,390 to date. REET FUND HIGHLIGHTS • REET revenues are 21.97% or $279,503 higher than last year. Projections indicate REET revenues are on track to meet the budget target of $3.0 million. CAPITAL FUND 332 HIGHLIGHTS • The negative fund balance in Fund 332 — Capital Construction is a result of the Mee property purchase and the timing of grant receipt. A reimbursement of $951,938 was submitted in early July. ty 0 a 0 c ii a� ca 3 a v N O N C 3 1 Packet Pg. 169 2.6.a City of Edmonds All Funds Financial Summary As of June 30, 2024 Beginning Fund Revenues / Expenditures / Revenues less Ending Fund Fund Balance Sources Uses Expenditures Balance Cash Balance Governmental 001 General Fund 2,492,460 26, 247,157 24, 961,180 1,285,977 3,778,438 698,883 009 LEOFF Medical Insurance Reserve 139,774 125,000 181,864 (56,864) 82,910 91,889 012 Contingency Reserve 2,228,672 - - - 2,228,672 2,228,672 014 Historic Sub -Fund 8,944 - 4,385 (4,385) 4,559 4,559 016 Building Maintenance 3,756,168 56,830 660,037 (603,207) 3,152,961 3,207,032 017 Marsh Restoration 853,595 300 - 300 853,895 853,895 C 018 Homeless Response 200,000 - - 200,000 200,000 C 019 Opioid Response 74,119 311,851 311,851 385,970 385,970 W Total General Funds 9,753,732 26,741,138 25,807,466 933,672 10,687,404 7,670,900 20 Special Revenue Funds v 104 Drug Enforcement 40,843 1,537 - 1,537 42,380 41,855 c 111 Street 4,701 1,219,194 1,280,754 (61,560) (56,859) (179,998) L, 112 Street Construction 2,734,808 2,274,889 2,009,878 265,011 2,999,820 1,984,621 117 Municipal Arts 657,265 38,871 9,723 29,148 686,413 677,928 R 120 Hotel / Motel 151,247 56,507 46,719 9,788 161,035 143,171 121 Employee Parking 83,814 14,601 - 14,601 98,415 97,338 d CY 122 Youth Scholarship 17,868 670 225 445 18,313 18,083 N 0 123 Tourism Promotion 138,157 22,232 10,081 12,151 150,308 143,341 N 125 REET 2 1,992,459 857,769 393,373 464,396 2,456,854 2,480,571 3 126 REET 1 3,957,800 930,517 374,824 555,694 4,513,493 4,460,433 v 127 Gifts Catalog 3,140,448 288,143 210,984 77,159 3,217,607 3,177,031 -t 130 Cemetery Maintenance 196,245 86,793 119,318 (32,525) 163,720 161,048 Q 137 Cemetery Trust 1,212,121 54,436 73,000 (18,564) 1,193,557 1,177,976 138 Sister City 18,681 3,124 2,120 1,004 19,685 19,441 140 Business Improvement 37,682 50,513 33,067 17,446 55,129 55,129 = 141 Affordable Housing 309,127 19,441 - 19,441 328,567 320,171 = 142 Edmonds Rescue 36,932 5,759,818 5,757,318 2,500 39,432 1,145,780 jL 143 Tree Fund 222,354 41,476 200,269 (158,793) 63,561 60,382 >+ Capital Projects 139,615 73,698 703,942 (630,244) (490,629) (501,074) Debt Service - 35,551 35,201 350 350 - 3 Enterprise Funds CY 411 Combined Utility Operation - 74,830 - 74,830 74,830 129,641 N 421 Water UtiIity 9,601,886 5,572,402 3,877,215 1,695,187 11,297,073 11,365,793 N 422 Storm Water Utility 6,983,494 3,799,818 2,358,506 1,441,312 8,424,805 7,960,210 c 423 Sewer/ Wastewater Treatment Plar 14,903,525 9,500,543 7,495,911 2,004,633 16,908,158 17,415,391 424 Bond Reserve Fund 843,961 571,376 556,892 14,484 858,445 858,445 N Internal Service Funds 511 Equipment Rental 5,298,245 1,464,424 1,304,321 160,103 5,458,347 5,338,801 IZ E 512 Technology Rental 421,587 1,089,402 935,972 153,431 575,017 581,028 C tU All Funds 62,898,595 60,643,714 53,597,077 7,046,637 69,945,232 66,803,435 E s t� r Q 2 Packet Pg. 170 I 2.6.a I GENERAL FUND SUMMARY City of Edmonds, WA Monthly Revenue Summary -General Fund 2024 General Fund Cumulative Monthly Budget Forecast Budget Forecast Monthly Actuals YTD Actuals Variance % January $ 2,698,070 $ 2,698,070 $ 2,532,339 $ 2,532,339 -6.14% February 5,386,652 2,688,582 3,801,618 6,333,957 17.59% March 8,194,953 2,808,300 4,006,316 10,340,274 26.18% April 12,809,847 4,614,894 8,886,692 19,226,965 50.10% May 21,776,323 8,966,476 3,958,085 23,185,051 6.47% June 24,453,075 2,676,752 3,062,106 26,247,157 7.34% July 27,423,536 2,970,461 August 30,755,807 3,332,272 September 33,530,489 2,774,682 October 39,070,656 5,540,167 November 47,885,067 8,814,411 December 51,056,792 3,171,725 City of Edmonds, WA Monthly Expenditure Summary -General Fund 2024 General Fund Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 4,809,938 $ 4,809,938 $ 4,652,570 $ 4,652,570 -3.27% February 8,929,454 4,119,516 3,706,872 8,359,442 -6.38% March 12,949,647 4,020,193 3,718,847 12,078,289 -6.73% April 16,605,531 3,655,883 3,782,082 15,860,371 -4.49% May 20,680,817 4,075,286 4,319,151 20,179,522 -2.42% June 25,263,927 4,583,110 4,781,657 24,961,180 -1.20% July 29,265,836 4,001,909 August 33,410,940 4,145,104 September 37,568,223 4,157,283 October 41,684,206 4,115,983 November 46,834,850 5,150,644 December 51,892,793 5,057,943 *The monthly budget forecast columns are based on a five-year average. 3 Packet Pg. 171 MAJOR GENERAL FUND REVENUE SUMMARY I 2.6.a I City of Edmonds, WA Monthly Revenue Summary -Real Personal/Property Tax 2024 Real Personal/Property Tax Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 28,172 $ 28,172 $ 15,003 $ 15,003 -46.75% February 156,833 128,661 265,415 280,418 78.80% March 877,571 720,738 546,457 826,875 -5.78% April 5,200,702 4,323,131 4,451,219 5,278,095 1.49% May 6,113,323 912,621 769,305 6,047,399 -1.08% June 6,167,757 54,434 53,708 6,101,108 -1.08% July 6,192,819 25,062 August 6,247,276 54,457 September 6,423,953 176,676 October 10,550,884 4,126,931 November 11,287,789 736,905 December 11,327,000 39,211 Sales and Use Tax Real Personal/Property Tax 12,000,000 11,000,000 10,000,000 Or 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 Prior Year City of Edmonds, WA Monthly Revenue Summary -Sales Tax 2024 Cumulative Monthly Budget Forecast Budget Forecast Monthly Actuals YTD Actuals Variance % January $ 956,967 $ 956,967 $ 975,066 $ 975,066 1.89% February 2,084,047 1,127,080 1,059,532 2,034,598 -2.37% March 2,987,849 903,802 870,730 2,905,328 -2.76% April 3,814,928 827,079 870,807 3,776,135 -1.02% May 4,821,039 1,006,111 983,892 4,760,027 -1.27% June 5,796,759 975,721 921,356 5,681,383 -1.99% July 6,836,449 1,039,690 August 7,953,072 1,116,623 September 8,995,564 1,042,491 October 10,116,626 1,121,062 November 11,238,239 1,121,613 December 12,300,000 1,061,761 *The monthly budget forecast columns are based on a five-year average. 4 Packet Pg. 172 MAJOR GENERAL FUND REVENUE SUMMARY I 2.6.a I City of Edmonds, WA Monthly Revenue Summary -Water Utility Tax 2024 Water Utility Tax Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 90,844 $ 90,844 $ 92,691 92,691 2.03% February 154,355 63,511 62,177 154,868 0.33% March 244,152 89,797 90,963 245,831 0.69% April 304,356 60,204 62,146 307,977 1.19% May 393,634 89,278 90,718 398,695 1.29% June 463,947 70,313 69,703 468,398 0.96% July 573,149 109,202 August 666,476 93,327 September 791,033 124,557 October 881,630 90,597 November 983,292 101,662 December 1,047,289 63,997 Water Utility Tax 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 Prior Year City of Edmonds, WA Monthly Revenue Summary -Sewer Utility Tax 2024 Sewer Utility Tax Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 101,297 $ 101,297 $ 101,472 $ 101,472 0.17% February 185,730 84,433 84,516 185,988 0.14% March 286,530 100,799 101,250 287,238 0.25% April 371,027 84,497 85,581 372,818 0.48% May 472,427 101,400 101,036 473,855 0.30% June 557,139 84,712 86,104 559,959 0.51% July 659,773 102,634 August 744,838 85,065 September 850,226 105,388 October 936,127 85,902 November 1,039,506 103,379 December 1,123,814 84,308 Sewer Utility Tax 1,200,000 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 Prior Year *The monthly budget forecast columns are based on a five-year average. 5 Packet Pg. 173 I 2.6.a I MAJOR GENERAL FUND REVENUE SUMMARY City of Edmonds, WA Monthly Revenue Summary -General Fund Charges forServices 2024 General Fund - Charges for Services Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 402,596 $ 402,596 $ 297,980 $ 297,980 -25.99% February 931,328 528,732 702,035 1,000,015 7.38% March 1,317,506 386,178 1,404,775 2,404,790 82.53% April 2,112,130 794,625 573,921 2,978,711 41.03% May 3,082,898 970,768 477,751 3,456,462 12.12% June 3,676,991 594,093 929,543 4,386,004 19.28% July 4,250,819 573,828 August 5,299,286 1,048,468 September 5,958,021 658,735 October 6,576,651 618,629 November 7,241,120 664,469 December 8,120,826 879,706 *The monthly budget forecast columns are based on a five-year average. 6 Packet Pg. 174 GENERAL FUND DEPARTMENT EXPENSE SUMMARY I 2.6.a I CITY OF EDMO NDS EXPENDITURES - GENERAL FUND - BY DEPARTMENT IN SUMMARY Title CITY COUNCIL OFFICE OF MAYOR HUMAN RESOURCES MUNICIPAL COURT ADMINISTRATIVE SERVICES CITY ATTORNEY NON -DEPARTMENTAL ■ZQato) =1gl:Ir/lei 9M SATELLITE OFFICE COMMUNITY SERVICES✓ECONOMIC DEV. PLANNING& DEVELOPMENT HUMAN SERVICES PROGRAM PARKS& RECREATION PUBLIC WORKS FACILITIES MAINTENANCE 2024 Adopted 6/30/2023 6/30/2024 Amount Budget Expenditures Expenditures Remaining %Spent $ 479,286 $ 208,152 $ 257,859 $ 221,427 54% 490,875 195,229 209,545 281,330 43% 1,222,438 455,291 619,724 602,714 51% 1,811,176 726,808 850,190 960,986 47% 2,825,453 1,327,293 1,470,906 1,354,547 52% 1,161,780 427,830 507,955 653,825 44% 6,857,495 9,392,113 2,965,970 3,891,525 43% 17,478,540 6,661,514 8,741,807 8,736,733 50% 172,105 56,650 73,371 98,734 43% 1,162,045 599,614 526,436 635,609 45% 4,251,605 1,934,311 1,894,266 2,357,339 45% 320,940 124,450 129,416 191,524 40% 6,520,597 2,623,359 2,880,951 3,639,646 44% 4,500,279 1,968,992 2,065,138 2,435,141 46% 2,638,179 2,002,414 1,767,646 870,533 67% $ 51,892,793 $ 28,704,022 $ 24,961,180 $ 26,931,613 48% F O is c �o C 1L % L is M CY 14 N O N d C 7 Packet Pg. 175 GENERAL FUND DEPARTMENT EXPENSE SUMMARY I 2.6.a I City of Edmonds, WA Monthly Expenditure Summary -City Council 2024 City Council Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 34,240 $ 34,240 $ February 71,153 36,913 March 112,189 41,036 April 150,403 38,214 May 193,081 42,678 June 234,428 41,347 July 275,019 40,591 August 316,493 41,474 September 357,868 41,375 October 394,551 36,684 November 435,285 40,734 December 479,286 44,001 40,574 $ 40,574 18.50% 54,006 94,579 32.92% 35,007 129,587 15.51 % 35,974 165,561 10.08% 57,697 223,258 15.63% 34,601 257,859 9.99% City of Edmonds, WA Monthly Expenditure Summary -Office of Mayor 2024 Office of Mayor Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 40,561 $ 40,561 $ February 82,159 41,598 March 124,596 42,436 April 165,441 40,846 May 205,791 40,350 June 245,843 40,052 July 287,251 41,408 August 327,468 40,217 September 367,326 39,858 October 406,988 39,662 November 449,726 42,738 December 490,875 41,149 33,901 $ 33,901-16.42% 35,511 69,412-15.52% 36,798 106,210-14.76% 36,154 142,364-13.95% 34,804 177,167-13.91% 32,377 209,545-14.76% Office of Mayor 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 lOQ,000 50,01 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Current Year -Budget -Prior Year *The monthly budget forecast columns are based on a five-year average. N Packet Pg. 176 1 I 2.6.a I GENERAL FUND DEPARTMENT EXPENSE SUMMARY City of Edmonds, WA Monthly Expenditure Summary -Human Resources 2024 Human Resources Cumulative Budget Forecast Monthly Budget Forecast Monthly Actuals YTD Actuals Variance % January $ 110,919 $ 110,919 $ 129,960 $ 129,960 17.17% February 206,083 95,165 103,533 233,493 13.30% March 293,020 86,937 100,807 334,300 14.09% April 385,026 92,006 98,181 432,481 12.33% May 477,507 92,481 94,231 526,711 10.30% June 609,764 132,257 93,012 619,724 1.63% July 691,435 81,671 August 781,445 90,009 September 882,461 101,016 October 976,331 93,870 November 1,084,356 108,025 December 1,222,438 138,082 City of Edmonds, WA Monthly Expenditure Summary -Municipal Court 2024 Municipal Court Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 133,120 $ 133,120 $ 136,698 $ 136,698 2.69% February 268,761 135,641 143,646 280,344 4.31% March 408,462 139,701 138,149 418,493 2.46% April 549,323 140,861 140,705 559,198 1.80% May 702,755 153,432 144,216 703,414 0.09% June 841,629 138,874 146,775 850,190 1.02% July 987,720 146,091 August 1,144,145 156,425 September 1,291,990 147,845 October 1,441,979 149,989 November 1,629,476 187,497 December 1,811,176 181,700 *The monthly budget forecast columns are based on a five-year average. 9 Packet Pg. 177 GENERAL FUND DEPARTMENT EXPENSE SUMMARY I 2.6.a I City of Edmonds, WA Monthly Expenditure Summary -Community Services/Economic Development 2024 Community Services/Economic Development Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 70,938 $ 70,938 $ 84,711 $ 84,711 19.42% February 150,629 79,691 85,764 170,475 13.18% March 228,686 78,058 85,735 256,210 12.04% April 308,932 80,246 91,280 347,490 12.48% May 391,061 82,128 83,820 431,310 10.29% June 480,392 89,331 95,126 526,436 9.58% July 570,789 90,397 August 679,369 108,580 September 777,142 97,773 October 877,976 100,834 November 1,007,121 129,145 December 1,162,045 154,924 Community Services/Economic Development 1,400,000 1,300,000 1,200,000 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 - Prior Year City of Edmonds, WA Monthly Expenditure Summary -Administrative Services 2024 Administrative Services Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 288,918 $ 288,918 $ 274,596 $ 274,596 -4.96% February 523,687 234,769 208,739 483,335 -7.71% March 733,695 210,008 217,967 701,302 -4.42% April 944,992 211,297 212,849 914,151 -3.26% May 1,157,177 212,186 372,263 1,286,415 11.17% June 1,442,022 284,845 184,491 1,470,906 2.00% July 1,684,828 242,805 August 1,896,259 211,431 September 2,116,379 220,121 October 2,344,386 228,007 November 2,598,917 254,531 December 2,825,453 226,536 Administrative Services !,800,000 1,800,000 1600,000 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 Current Year -Budget Prior Year *The monthly budget forecast columns are based on a five-year average. 10 Packet Pg. 178 I 2.6.a I GENERAL FUND DEPARTMENT EXPENSE SUMMARY City of Edmonds, WA Monthly Expenditure Summary -City Attorney 2024 City Attorney Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 96,815 $ 96,815 $ February 193,630 96,815 March 290,445 96,815 April 387,260 96,815 May 484,075 96,815 June 580,890 96,815 July 677,705 96,815 August 774,520 96,815 September 871,335 96,815 October 968,150 96,815 November 1,064,965 96,815 December 1,161,780 96,815 Police - $ - 0.00% 127,250 127,250-34.28% 93,007 220,257-24.17% 108,383 328,640-15.14% 98,726 427,366-11.71% 80,589 507,955-12.56% City Attorney 1,200,000 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 AK JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -C=mtYear -Budget Prior Year City of Edmonds, WA Monthly Expenditure Summary -Police 2024 Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 1,325,644 $ 1,325,644 $ 1,320,779 $ 1,320,779 -0.37% February 2,644,333 1,318,689 1,322,826 2,643,606 -0.03% March 4,027,557 1,383,224 1,252,027 3,895,633 -3.28% April 5,378,981 1,351,424 1,459,657 5,355,290 -0.44% May 6,782,808 1,403,826 1,864,000 7,219,290 6.44% June 8,239,937 1,457,130 1,522,517 8,741,807 6.09% July 9,689,531 1,449,593 August 11,039,396 1,349,866 September 12,478,176 1,438,780 October 13,942,747 1,464,571 November 15,677,275 1,734,528 December 17,478,540 1,801,265 Police 18,000,000 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 -Prior Year *The monthly budget forecast columns are based on a five-year average. 11 Packet Pg. 179 1 GENERAL FUND DEPARTMENT EXPENSE SUMMARY I 2.6.a I City of Edmonds, WA Monthly Expenditure Summary -Planning & Development 2024 Planning & Development Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 328,959 $ 328,959 $ 269,177 $ 269,177 -18.17% February 671,531 342,572 267,692 536,869 -20.05% March 999,838 328,306 393,779 930,649 -6.92% April 1,348,844 349,006 303,822 1,234,470 -8.48% May 1,692,557 343,714 318,775 1,553,246 -8.23% June 2,024,917 332,360 341,020 1,894,266 -6.45% July 2,387,504 362,587 August 2,727,099 339,594 September 3,071,846 344,748 October 3,418,696 346,849 November 3,799,763 381,067 December 4,251,605 451,842 Parks & Recreation Planning & Development 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 Current Year -Budget Prior Year City of Edmonds, WA Monthly Expenditure Summary -Parks & Recreation 2024 Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 498,850 $ 498,850 $ 453,277 $ 453,277 -9.14% February 986,757 487,907 470,870 924,147 -6.35% March 1,483,576 496,818 491,227 1,415,374 -4.60% April 1,955,557 471,981 483,624 1,898,998 -2.89% May 2,461,256 505,698 497,889 2,396,886 -2.62% June 2,984,923 523,667 484,065 2,880,951 -3.48% July 3,580,661 595,738 August 4,186,784 606,123 September 4,840,484 653,700 October 5,394,700 554,215 November 5,962,605 567,905 December 6,520,597 557,992 Parks & Recreation 1,500,000 1 ;oar 1,000,000 500 000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Current Year -Budget �Prlor Year *The monthly budget forecast columns are based on a five-year average. 12 Packet Pg. 180 GENERAL FUND DEPARTMENT EXPENSE SUMMARY I 2.6.a I City of Edmonds, WA Monthly Expenditure Summary -Facilities Maintenance 2024 Facilities Maintenance Cumulative Budget Forecast Monthly Budget Forecast Monthly Actuals YTD Actuals Variance % January $ 156,775 $ 156,775 $ 280,811 $ 280,811 79.12% February 389,674 232,899 265,070 545,881 40.09% March 593,572 203,898 223,593 769,473 29.63% April 769,278 175,706 218,971 988,445 28.49% May 948,275 178,997 203,576 1,192,021 25.70% June 1,082,249 133,974 575,626 1,767,646 63.33% July 1,241,211 158,962 August 1,449,110 207,898 September 1,701,700 252,590 October 1,994,272 292,572 November 2,251,849 257,577 December 2,638,179 386,330 City of Edmonds, WA Monthly Expenditure Summary -Engineering 2024 Engineering Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 301,531 $ 301,531 $ 283,081 $ 283,081 -6.12% February 604,565 303,034 286,618 569,699 -5.77% March 913,824 309,259 255,452 825,151 -9.70% April 1,223,821 309,997 270,205 1,095,355 -10.50% May 1,553,842 330,021 260,871 1,356,226 -12.72% June 1,868,266 314,424 260,767 1,616,993 -13.45% July 2,185,239 316,973 August 2,491,236 305,997 September 2,797,476 306,240 October 3,102,475 304,999 November 3,439,952 337,477 December 3,777,853 337,901 Engineering 1,500,000 1,000,000 500,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -Current Year -Budget Prior Year *The monthly budget forecast columns are based on a five-year average. 13 Packet Pg. 181 GENERAL FUND DEPARTMENT EXPENSE SUMMARY I 2.6.a I City of Edmonds, WA Monthly Expenditure Summary -Non -Departmental 2024 Non -Departmental Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 926,027 $ 926,027 $ 1,244,387 $ 1,244,387 -3.27% February 1,489,596 563,569 221,547 1,465,934 -6.38% March 2,012,000 522,404 285,014 1,750,948 -6.73% April 2,395,260 383,260 211,983 1,962,932 -4.49% May 2,923,480 528,220 178,984 2,141,916 -2.42% June 3,677,256 753,776 824,054 2,965,970 -1.20% July 4,126,291 449,035 August 4,662,507 536,216 September 5,123,698 461,191 October 5,544,111 420,414 November 6,294,725 750,614 December 6,857,495 562,770 Non -Departmental 20,000,000 18,000,000 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 -CurrentYear -Budget Prior Year *The monthly budget forecast columns are based on a five-year average. 14 Packet Pg. 182 FUND SUMMARIES I 2.6.a I City of Edmonds, WA Monthly Expenditure Summary -Fund 016 - Building Maintenance Fund 2024 Fund 016 - Building Maintenance Fund Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 93,773 $ 93,773 $ February 187,546 93,773 March 281,318 93,773 April 375,091 93,773 May 468,864 93,773 June 562,637 93,773 July 656,410 93,773 August 750,182 93,773 September 843,955 93,773 October 937,728 93,773 November 1,031,501 93,773 December 1,125,275 93,773 138,032 $ 138,032 47.20% 481,478 619,510 230.33% 9,472 628,982 123.58% 2,113 631,095 68.25% 28,074 659,169 40.59% 868 660,037 17.31% Fund 016 -Building Maintenance Fund 1,200,000 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 -Prior Year *The monthly budget forecast columns are based on a five-year average. 15 Packet Pg. 183 FUND SUMMARIES ■ 2.6.a City of Edmonds, WA Monthly Revenue Summary -Real Estate Excise Tax 1 & 2 2024 Real Estate Excise Tax 1 & 2 Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 225,388 $ 225,388 $ 158,734 $ 158,734 -29.57% February 376,297 150,909 141,173 299,908 -20.30% March 569,768 193,471 237,275 537,183 -5.72% April 775,427 205,659 354,193 891,375 14.95% May 1,036,020 260,593 338,546 1,229,921 18.72% June 1,293,139 257,119 321,623 1,551,544 19.98% July 1,573,012 279,874 August 1,849,679 276,667 September 2,151,102 301,423 October 2,420,735 269,633 November 2,687,175 266,440 December 3,000,000 312,825 Real Estate Excise Tax 1 & 2 2,700,000 2,100,000 1,800,000 / 1,500,000 1,200,000 900,000 600,000 300,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC _Current Year -Budget -Prior Year City of Edmonds, WA Monthly Expenditure Summary -Fund 512 - Technology Rental Fund 2024 Fund 512 - Technology Rental Fund Expenses Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 278,067 $ 278,067 $ 450,425 $ 450,425 61.98% February 459,653 181,586 88,246 538,670 17.19% March 687,018 227,364 99,476 638,146 -7.11% April 781,894 94,876 88,852 726,999 -7.02% May 882,974 101,080 118,249 845,248 -4.27% June 1,005,318 122,345 90,723 935,972 -6.90% July 1,131,059 125,740 August 1,299,834 168,775 September 1,465,789 165,955 October 1,643,179 177,391 November 1,772,621 129,442 December 2,011,076 238,455 Fund 512 -Technology Rental l'lu1d Expenses 2,200,000 2,000,000 11800,000 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 Current Year -Budget �Prior Year *The monthly budget forecast columns are based on a five-year average. 16 Packet Pg. 184 I 2.6.a I FUND 421 - WATER UTILITY FUND SUMMARY City of Edmonds, WA Monthly Revenue Summary -Fund 421- Water Utility Fund 2024 Fund 421 - Water Utility Fund Revenues Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 980,443 $ 980,443 $ 1,090,370 $ 1,090,370 11.21% February 1,712,436 731,993 711,773 1,802,143 5.24% March 2,701,940 989,503 1,075,486 2,877,629 6.50% April 3,356,766 654,827 785,359 3,662,988 9.12% May 4,316,356 959,590 1,061,688 4,724,677 9.46% June 5,115,288 798,932 847,725 5,572,402 8.94% July 6,310,311 1,195,023 August 7,304,483 994,172 September 8,635,357 1,330,874 October 9,613,693 978,336 November 11,500,392 1,886,699 December 12,314,744 814,352 City of Edmonds, WA Monthly Expenditure Summary -Fund 421- Water Utility Fund 2024 Fund 421 - Water Utility Fund Ripenses Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 641,026 $ 641,026 $ 503,314 $ 503,314 -21.48% February 1,300,480 659,453 589,193 1,092,506 -15.99% March 2,051,423 750,943 586,629 1,679,136 -18.15% April 2,887,784 836,362 705,351 2,384,486 -17.43% May 3,786,010 898,226 592,313 2,976,799 -21.37% June 5,237,771 1,451,761 900,416 3,877,215 -25.98% July 6,385,874 1,148,103 August 7,778,196 1,392,322 September 8,859,399 1,081,203 October 9,774,932 915,533 November 11,599,342 1,824,410 December 13,837,584 2,238,242 *The monthly budget forecast columns are based on a five-year average. 1% Packet Pg. 185 FUND 422 - STORM UTILITY FUND SUMMARY I 2.6.a I City of Edmonds, WA Monthly Revenue Summary -Fund 422 - Storm Utility Fund 2024 Fund 422 - Storm Utility Fund Revenues Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 663,684 $ 663,684 $ 542,348 $ 542,348 -18.28% February 2,084,443 1,420,759 1,169,775 1,712,123 -17.86% March 2,727,930 643,488 544,143 2,256,265 -17.29% April 3,254,732 526,802 499,506 2,755,771 -15.33% May 3,846,640 591,908 551,418 3,307,189 -14.02% June 4,357,699 511,059 492,629 3,799,818 -12.80% July 4,935,913 578,214 August 6,218,378 1,282,465 September 6,807,203 588,825 October 7,354,010 546,807 November 8,398,392 1,044,382 December 8,971,716 573,324 Fund 422 - Storm Utility Fund Revenues 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 -Prior Year City of Edmonds, WA Monthly Expenditure Summary -Fund 422 - Storm Utility Fund 2024 Fund 422 - Storm Utility Fund Expenses Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 717,368 $ 717,368 $ 397,818 $ 397,818 -44.54% February 2,253,049 1,535,682 457,806 855,625 -62.02% March 2,948,588 695,538 332,627 1,188,252 -59.70% April 3,518,002 569,414 372,195 1,560,446 -55.64% May 4,157,788 639,786 354,257 1,914,703 -53.95% June 4,710,186 552,398 443,803 2,358,506 49.93% July 5,335,170 624,985 August 6,721,372 1,386,201 September 7,357,826 636,454 October 7,948,863 591,037 November 9,077,723 1,128,861 December 9,697,422 619,699 *The monthly budget forecast columns are based on a five-year average. 18 Packet Pg. 186 FUND 423 - SEWER UTILITY FUND SUMMARY I 2.6.a I City of Edmonds, WA Monthly Revenue Summary -Fund 423 - Sewer Utility Fund 2024 Fund 423 - Sewer Utility FWnd Revenues Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 1,687,922 $ 1,687,922 $ 1,476,339 $ 1,476,339 -12.54% February 3,157,126 1,469,204 1,418,266 2,894,605 -8.32% March 4,456,021 1,298,895 1,449,133 4,343,737 -2.52% April 5,760,746 1,304,725 2,353,378 6,697,115 16.25% May 7,543,920 1,783,174 1,462,475 8,159,590 8.16% June 8,534,081 990,162 1,340,953 9,500,543 11.32% July 10,048,029 1,513,948 August 11,755,236 1,707,207 September 13,439,062 1,683,826 October 14,631,473 1,192,411 November 18,018,844 3,387,371 December 20,019,768 2,000,924 City of Edmonds, WA Monthly Expenditure Summary -Fund 423 - Sewer Utility Fund 2024 Fund 423 - Sewer Utility ]Fund Expenses Cumulative Monthly Monthly YTD Variance Budget Forecast Budget Forecast Actuals Actuals % January $ 1,035,408 $ 1,035,408 $ 1,373,009 $ 1,373,009 32.61% February 2,009,872 974,464 1,032,356 2,405,366 19.68% March 3,218,482 1,208,610 1,115,359 3,520,725 9.39% April 4,925,786 1,707,303 1,702,160 5,222,885 6.03% May 6,562,115 1,636,329 910,860 6,133,745 -6.53% June 8,402,137 1,840,022 1,362,165 7,495,911 -10.79% July 10,222,675 1,820,538 August 11,835,035 1,612,360 September 14,187,219 2,352,184 October 15,857,930 1,670,711 November 17,953,941 2,096,010 December 23,397,507 5,443,566 Ind 423 - Sewer Utility Fund Expenses 24,000,000 22,000,000 20,000,000 18,000,000 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 Prior Year *The monthly budget forecast columns are based on a five-year average. 19 Packet Pg. 187 ■ 2.6.a I UTILITY EXPENSE SUMMARY Title CITY 0FEDMONDS EXPENDITURES - UTLITY- BY FUND IN SUMMARY 2024 Adopted 6/30/2023 6/30/2024 Budget Expenditures Expenditures Amount Remaining %Spent WATER UTILITY FUND $ 13,837,584 $ 3,802,333 $ 3,877,215 $ 9,960,369 28% O STORM UTILITY FUND 9,697,422 2,534,959 2,358,506 7,338,916 Q- 24% SEWER/WWTP UTILITY FUND 23,397,507 7,252,336 7,495,911 15,901,596 32% BOND RESERVE FUND 1,988,830 574,892 556,892 1,431,938 28% $ 48,921,343 $ 14,164,519 $ 14,288,523 $ 34,632,820 29% C 1L % L /may V N O N d C 3 20 Packet Pg. 888 I 2.6.a I INVESTMENT PORTFOLIO SUMMARY City of Edmonds Investment Portfolio Detail As of June 30, 2024 Years Agency/ Investment Purchase to Par Market Maturity Coupon Issuer Type Price Maturity Value Value Date Rate FNMA Bonds 992,693 0.01 1,000,000 999,536 07/02/24 1.75% FFCB Bonds 1,960,906 0.21 2,000,000 1,991,120 09/13/24 3.50% FHLB Bonds 950,774 0.39 1,000,000 981,872 11/18/24 0.90% Spokane County WA Bonds 207,260 0.42 200,000 197,296 12/01/24 2.10% First Financial - Waterfront Center CD 245,000 0.49 245,000 245,000 12/27/24 2.47% FHLMC Bonds 974,798 0.70 1,000,000 989,892 03/13/25 3.75% Farmer Mac Bonds 1,995,088 0.80 2,000,000 1,984,665 04/17/25 4.25% FHLB Bonds 969,524 1.08 1,000,000 987,483 07/28/25 3.60% US Treasury Note Note 964,597 1.13 1,000,000 978,984 08/15/25 3.13% FFCB Bonds 1,982,692 1.44 2,000,000 1,976,183 12/08/25 4.13% Farmer Mac Bonds 1,994,172 1.59 2,000,000 1,971,479 02/02/26 3.95% FHLMC Bonds 993,661 2.06 1,115,000 1,028,544 07/22/26 0.83% Farmer Mac Bonds 2,057,309 2.38 2,305,000 2,122,657 11/17/26 1.15% First Financial - ECA CD 2,803,516 3.38 2,803,516 2,803,516 11/15/27 2.96% TOTAL SECURITIES 19,091,991 1.15 19,668,516 19,258,226 Washington State Local Gov't Investment Pool TOTAL PORTFOLIO Issuer Diversification First Financial - CD, 15% Spokane Fa rmer County Mac, 32% WA, 1% FFCB, 20% FHLMC, FHLB, 11% 10% / 43,456,075 43,456,075 Demand 5.40% $ 63,124,591 $ 62,714,301 Cash and Investment Balances (in $Millions) Checking, $6.60, 10% Note, Bonds, $1.00, 2%� $15.62, 22% CD's, $3.05 4% � State LGIP, $43.46 , 62% 21 Packet Pg. 189 1 INVESTMENT PORTFOLIO SUMMARY I 2.6.a I F O CL 0 _ LL L m /may V N O N 0) C 3 O Q d 10 _ O _ LL L d ry� V N O N d C 7 d r.+ _d Q E O V C d t t� 10 Q 22 Packet Pg. 190 2.6.a City of Edmonds 2024 General Fund (001) Cash Flow Report (with ACTUALS) Revenues Property Tax Jan Actual 21,016 Feb Actual 366,893 Mar Actual 755,437 Sales Tax 1,061,193 1,158,271 948,328 Amusements & Utility Tax 513,836 865,277 655,472 Excise & Other Taxes - 81,406 - License & Permits 298,154 162,918 68,969 Other Governments & Grants 187,239 - 112,069 Service Fees 159,253 194,102 1,091,628 Interfund Service Fees' 138,726 507,933 313,147 Fines & Penalties 19,021 29,017 - Miscellaneous 133,900 50,526 61,266 Disposal of Capital Assets - - - Difference Inc / (ded 1160,451) 1239,098) 1379,558) 4,300 (54,299) 465,429 476,814 (0) (64,063) 150,102 10,000 Transfers 385,274 385274 391,075 5801 2,532,339 3,801,618 4 006 316 8,886,692 3 958 O85 3 062 106 2 873 997 2 882 457 3,236,022 8 471 720 4155 669 3,393,145 51260167 51056 792 203 375 Actual May Actual Jun Actual Jul Forecast Aug Forecast Sep Forecast Oct Forecast Nov Forecast Dec Forecast Total(Forecast) Budget 6,153,028 1,063,611 74,286 35,181 76,462 248,081 5,861,219 1,034,766 55,068 15,745,049 15,905,500 949,258 1,069,826 1,003,253 1,160,108 1,220,580 1,141,366 1,180,429 1,221,687 1,106,203 13,220,502 13,459,600 567,877 630,223 544,066 607,308 621,376 654,521 388,708 727,016 588,611 7,364,291 7,743,849 2,448 84,129 - - 77,091 213 - 84,940 73 330,300 326,000 322,066 84,523 61,744 309,068 78,413 59,292 225,430 205,556 64,318 1,939,451 1,993,750 138,735 312,945 257,513 63,351 872 81,342 41,462 258,016 216,596 1,670,139 1,204,710 239,048 169,274 614,426 181,275 354,401 570,814 220,758 162,921 611,416 4,570,326 4,093,512 334,873 308,477 315,117 318,277 330,866 327,237 333,333 298,814 500,513 4,027,314 4,027,314 91,609 153,244 68,090 116,118 54,167 83,341 65,725 - 157,954 838,287 902,350 87,751 81,833 113,611 84,311 68,229 69,815 154,656 161,953 91,383 1,159,234 1,009,132 - - 10,000 - - - - - - 10,000 - Salaries 1,868,992 1,860,417 1,848,525 1,975,160 2,402,922 2,040,193 1,953,553 1,950,674 1,968,066 1,980,234 1,980,068 1,988,929 23,817,734 23,095,383 722,351 Overtime 116,684 93,279 54,727 76,584 122,240 95,886 54,929 34,323 76,519 50,140 69,037 64,655 909,004 643,080 265,924 Holiday Buyback - - - - - - - 5,385 6,804 - 513,524 5,374 531,087 294,001 237,086 Benefits 740,340 702,129 684,991 745,469 767,668 718,780 705,438 710,956 733,340 745,702 764,740 777,427 8,796,980 7,868,-8 928,572 Uniforms 13,909 8,879 12,072 4,764 3,589 6,165 9,034 11,254 10,638 7,394 3,581 3,197 95,474 126,931 (31,457) Pension 2,932 - 5,864 2,932 2,932 2,932 9,024 9,024 9,024 9,024 5,929 5,929 65,545 141,668 (76,123) Supplies 13,474 28,205 36,924 25,194 112,010 33,603 37,707 70,458 59,151 93,274 51,780 50,694 611,474 677,285 (64,811) Small Equipment 1,388 5,978 935 5,873 7,240 7,973 55,845 53,509 Z512 2ZS64 3,285 17,947 185,049 239,791 (54,742) Professional Services 414,539 504,373 572,676 405,136 441,983 459,554 898,460 1,353,703 1,428,420 1,307,061 1,S42,135 1,473,382 10,801,522 10,918,360 (116,838) Communications 11,170 8,838 20,583 25,147 7,697 15,162 29,460 15,374 40,080 11,136 13,823 29,348 228,819 236,105 (7,286) Travel 695 2,208 4,646 1,304 8,236 7,337 4,874 4,826 1,400 4,101 3,451 1,562 44,640 51,187 (6,547) Excise Taxes 2,725 2,136 3,250 2,554 2,304 2,423 Z236 2,265 4,526 3,029 1,991 1,737 31,176 30,000 1,176 Interfund Rent 315,916 322,079 323,652 319,860 315,908 320,122 320,176 326,946 329,506 321,806 328,193 326,679 3,870,842 3,913,541 (42,699) Insurance 910,495 - - - - - - - - - - - 910,495 883,686 26,809 Utilities 56,826 45,879 62,960 62,997 63,245 28,032 88,753 40,025 77,938 47,846 57,730 70,110 702,339 663,800 38,539 Repair &Maint 81,539 22,811 34,904 29,285 10,924 2,320 3,591 23,959 10,687 4ZS73 19,276 27,207 309,076 388,300 (79,224) Miscellaneous 66,908 74,660 42,575 34,243 26,483 22,362 18,551 21,776 43,389 41,685 1ZB51 17,464 423,947 424,867 (920) Contingency - 25,000 - - - - - - - - - - 25,000 25,000 - Transfer - - - - - 525,000 - - - - 62,695 49,478 637,173 650,000 (12,827) Building (Capital) 34,040 - - - - 408,179 - - - - - - 441,219 - 442,219 Machinery& Equipment (Capital) - - - - 20 - - - - - - - 10 - 20 Construction (Capital) - - - - - - - - - - - - - - - Lease - - - 44,224 23,750 23,750 23,750 23,750 23,750 23,750 23,750 23,750 234,224 300,000 (65,776) Debt -Principal - - - - - - - - - - - 197,120 197,120 197,120 - Debt - Interest - - 9,562 21,356 - 61,886 - - - - - 61,890 154,694 123,780 30,914 Debt- Other 500 (500) 4,652,570 3,706,872 3,718,847 3,782,082 4,319,151 4,781,657 4,215,380 4,659,207 4,825,750 4,713,320 5,457,937 5,193,880 54,026,653 1 51,892,593 1 2,133,860 Net Revenue/(Expenditures) 1 (2,120,231)l 94.746 1 287.469 1 5.104.610 1 (361,065)(1,719,552)(1,341,383)(1,776,750) (1,589,728)1 3,758,400 1 (1,302,268)(1,800,735) (2,766,486) (836,001)(1,930,485) Changes in AR 30,743 30,894 (8,337) 16,329 63,269 (19,719) Changes in AP (256,704) (227,711) 31,069 175,337 (125,023) (132,356) Cash Balance 1 (2,511,077)(2,613,147) (2,302,946)1 2,993,329 1 2,570,509 1 698,883 Packet Pg. 191 2.7 City Council Agenda Item Meeting Date: 07/16/2024 2024 July Budget Amendment Ordinance Staff Lead: Kim Dunscombe Department: Administrative Services Preparer: Marissa Cain Background/History Amend the 2024 Ordinance No. 4349 Staff Recommendation Staff recommends that Council approve Ordinance No. XXXX amending the 2024 Budget. Attachments: 2024 July Decision Package Exhibits 2024 July Budget Amendment Ordinance Packet Pg. 192 July 2024 Budget Amendment 2.7.a Budget Amendment for: July 23, 2024 Item Description: Due to the costs for consultant plan review of one unusually large permitting project, the maximum amount of $99,000 under the current 2-year contract with Beck and Associates will be exceeded. The combined amount of current and anticipated task orders assigned to Beck is estimated to be $145,000. These task orders include several small permit projects previously completed in addition to the several permit types associated with the aforementioned large project. Also, the Building Division professional services budget of $43,000 within the City's adopted budget will correspondingly be overspent for the calendar year 2024. The professional services line item will need to be increased by $140,000 to cover anticipated costs. All of these expenses are considered pass through and will not impact the general fund. Department: Development Services Division: Building illuildhip Fund Name: 001 GENERAL Title: Development Professional Services Budget Amendment Type New Item For Council To Consider Date of Discussion or Budget Approval? How is this amendment funded? 100% Ending Fund Balance What is the nature of the expenditure? One -Time Is the Expenditure Operating or Capital? Operating Expenditure Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 00 1.000.62.524.20.41. 10 Professional Services System Contracts $ 145,000 $ $ $ $ Total Expenditure Increase (Decrease) $ 145,000 $ $ $ $ Revenue Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 001.000.345.83.000.00 Building Plan Review and Inspection $ 145,000 $ $ $ $ Total Revenue Increase (Decrease) $ 145,000 $ $ $ $ Ending Fund Balance Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 Total Ending Fund Balance Increase (Decrease) $ Packet Pg. 193 July 2024 Budget Amendment 2.7.a Budget Amendment for: July 23, 2024 Description: Budget Amendment Type Date of Discussion or Budget Approval? How is this amendment funded? What is the nature of the expenditure? Is the Expenditure Operating or Capital? Expenditure Increase (Decrease) budget amendment is to transfer funds from Fund 016 to Fund 001 to cover the payment made from the General for the Edmonds Library Repairs. Services Interfund Transfer Dunscombe New Item For Council To Consider 100% Ending Fund Balance Fund Name: Account Number Description 2024 2025 2026 2027 2028 016.000.66.594.18.62.00 Interfund Transfer to Fund 001 $ 408,179 $ $ $ $ Total Expenditure Increase (Decrease) $ 408,179 $ $ $ $ Revenue Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 Total Revenue Increase (Decrease) $ $ S $ $ Ending Fund Balance Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 016.000.66.508.00.00.00 Ending Fund Balance $ (408,179) $ $ $ $ Total Ending Fund Balance Increase (Decrease) $ (408,179) $ $ $ $ Packet Pg. 194 July 2024 Budget Amendment 2.7.a Budget Amendment for: July 23, 2024 Description: Budget Amendment Type Date of Discussion or Budget Approval? How is this amendment funded? What is the nature of the expenditure? Is the Expenditure Operating or Capital? Expenditure Increase (Decrease) This decision package moves the remaining balance in the Edmonds Homelessness Fund (018) to the General Fund (001). Services Homelessness Fund Transfer Kim Dunscombe New Item For Council To Consider 100% Ending Fund Balance One -Time Operating Fund P 001 GENERAL Name: Account Number Description 2024 2025 2026 2027 2028 018.000.61.597.57.55.01 Interfund Transfer to Fund 001 $ 200,000 $ $ $ $ Total Expenditure Increase (Decrease) $ 200,000 $ $ $ $ Revenue Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 001.000.397.57.018.00 Interfund Transfer from Fund 018 $ 200,000 $ $ $ $ Total Revenue Increase (Decrease) $ 200,000 $ $ $ $ Ending Fund Balance Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 018.000.39.508.40.00.00 Ending Fund Balance $ (200,000) $ $ $ $ 001.000.39.508.00.00.00 Ending Fund Balance 200,000 Total Ending Fund Balance Increase (Decrease) $ $ $ $ $ w C d E C d E Q Lv 7 m N O N N r.+ L x w O Y t) t0 IL C O .y O 0 7 N O N +r C d E t C� Q Packet Pg. 195 July 2024 Budget Amendment 2.7.a Budget Amendment for: July 23, 2024 Description: Budget Amendment Type Date of Discussion or Budget Approval? How is this amendment funded? What is the nature of the expenditure? Is the Expenditure Operating or Capital? Expenditure Increase (Decrease) This decision package transfers $80,000 from the Employee Parking Permit Fund to the General Fund to cover a portion of the Parking Enforcement Officer's salary and benefits. Administrative Services Finance Parking Enforcement Officer Transfer Kim Dunscombe New Item For Council To Consider 100% Ending Fund Balance One -Time Operating Fund I MULTIPLE FUNDS Name: Account Number Description 2024 2025 2026 2027 2028 121.000.25.597.00.55.01 Transfer to Fund 001 $ 80,000 $ $ $ $ Total Expenditure Increase (Decrease) $ 80.000 $ $ $ $ Revenue Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 00 1.000.397.19.12 1.00 Transfer from Fund 121 $ 80,000 $ $ $ $ Total Revenue Increase (Decrease) $ 80,000 $ $ $ $ Ending Fund Balance Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 121.000.25.508.40.00.00 Ending Fund Balance $ (80,000) $ $ $ $ 001.000.39.508.00.00.00 Ending Fund Balance 80,000 Total Ending Fund Balance Increase (Decrease) $ $ $ $ $ w C Lv E C d E Q Lv 7 m N O N N r.+ L x w O Y t) t0 IL C O .y O 0 7 N O N +r a d E t C� Q Packet Pg. 196 2.7.a July 2024 Budget Amendment Budget Amendment for: July 23, 2024 Description: Budget Amendment Type Date of Discussion or Budget Approval? How is this amendment funded? What is the nature of the expenditure? Is the Expenditure Operating or Capital? Expenditure Increase (Decrease) This decision package allocates the remaining ARPA funds to pay for the Fire District Contract. $300k of the funding will be realloacted from the Community Relief Funds. The remaining balance are funds that were not previously allocated, and must be used by the end of the fiscal year. Services Finance ARPA Funds for Fire Contract Kim Dunscombe New Item For Council To Consider 100% Ending Fund Balance One -Time Operating Fund 142 EDMONDS CARES Name: I FUND Account Number Description 2024 2025 2026 2027 2028 142.000.39.518.63.41.00 Community Relief Funds $ (300,000) $ $ 142.000.39.522.20.41.50 Fire District Contract 619,475 Total Expenditure Increase (Decrease) $ 319,475 $ $ $ $ Revenue Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 142.000.333.21.019.00 Coronavirus Relief Fund $ 319,475 $ $ $ $ Total Revenue Increase (Decrease) $ 319,475 $ $ $ $ Ending Fund Balance Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 Total Ending Fund Balance Increase (Decrease) $ Packet Pg. 197 2.7.a July 2024 Budget Amendment Budget Amendment for: July 23, 2024 Description: This capital budget amendment enables the acquisition of the 1-acre Mee Property as new parkland and expansion of Mathay Ballinger Park. As per the Council's official Parkland and Wooded Area Acquisition approval during the February 2, 2024 meeting, the authorized expenditure for the acquisition and related costs was $1,137,500. These expenditures are covered by Snohomish County Conservation Future program grant ($853,125), City Tree Fund ($200,000 of expenditure authority previously granted) and BEET funds ($84,375). Recreation & Human Services Feser Budget Amendment Type Date of Discussion or Budget Approval? How is this amendment funded? What is the nature of the expenditure? Is the Expenditure Operating or Capital? Expenditure Increase (Decrease) Parkland Previously Approved Budget By Council Feb 2 2024 Reimbursed by Grants or Outside Agencies One -Time Cam Fund 332 PARKS CAPITAL Name CONSTRUCTION FUND Account Number Description 2024 2025 2026 2027 2028 332.000.64.594.76.61.00 Land - Park Facilities $ 853,125 $ $ $ 126.000.64.594.76.61.00 Land - Park Facilities 84,375 Total Expenditure Increase (Decrease) $ 937,500 $ $ $ $ Revenue Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 332.000.337.01.000.00 Interlocal with Snohomish County $ 853,125 $ $ $ $ Total Revenue Increase (Decrease) $ 853,125 $ $ $ $ Ending Fund Balance Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 126.000.39.508.30.00.00 Ending Fund Balance $ (84,375) $ $ $ $ Total Ending Fund Balance Increase (Decrease) $ (84,375) $ $ $ $ w C Lv E C d E Q Lv 7 m N O N N r.+ L x w a� Y t) t0 IL C O .y O 0 7 N O N +r C d E t C� R Q Packet Pg. 198 2.7.a July 2024 Budget Amendment Budget Amendment for: July 23, 2024 Description: The City Council approved the award of the 2024 Overlay Construction Contract for $1.51 million to Granite Construction at the May 21, 2024 City Council meeting. An additional $100,000 ($50k each from the 125 and 126 REET funds) was needed to fully fund the construction budget. This budget amendment programs the additional REET funds in 2024 to complete the project. Budget Amendment Type Date of Discussion or Budget Approval? How is this amendment funded? What is the nature of the expenditure? Is the Expenditure Operating or Capital? Expenditure Increase (Decrease) Public Works 2024 Pavement Preservation Previously Discussed By Council May 212024 100% Ending Fund Balance One -Time Fund I MULTIPLE FUNDS Name: Account Number Description 2024 2025 2026 2027 2028 125.000.68.542.30.48.00 REPAIR & MAINTENANCE -OVERLAYS $ 50,000 $ $ $ $ 126.000.68.542.30.48.00 REPAIR & MAINTENANCE -OVERLAYS 50,000 Total Expenditure Increase (Decrease) $ 100,000 $ $ $ $ Revenue Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 Total Revenue Increase (Decrease) $ $ $ $ $ Ending Fund Balance Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 125.000.64.508.30.00.00 Ending Fund Balance $ (50,000) $ $ $ $ 126.000.64.508.30.00.00 Ending Fund Balance (50,000) Total Ending Fund Balance Increase (Decrease) $ (100,000) $ $ $ $ w C d E C d E Q Lv 7 m N O N N r.+ L x w 4) as Y t) t0 IL C O .y O 0 N O N +r C d E t t) Q Packet Pg. 199 2.7.a July 2024 Budget Amendment Budget Amendment for: July 23, 2024 Description: Budget Amendment Type Date of Discussion or Budget Approval? How is this amendment funded? What is the nature of the expenditure? Is the Expenditure Operating or Capital? Expenditure Increase (Decrease) City Council approved a grant agreement with the National Fish and Wildlife Foundation to complete a Planning Study for Edmonds Marsh and Estuary Restoration at the March 19th City Council meeting. This budget amendment will program the anticipated expenditures and grant revenue into the 2024 budget. Public Works Edmonds Marsh Oscar Antillon Previously Discussed By Council Mar 19 2024 100% Ending Fund Balance One -Time C Fund f 422 STORM Name: Account Number Description 2024 2025 2026 2027 2028 422.000.72.531.70.41.67 Interfund Services $ 15,000 $ $ 422.000.72.531.90.41.20 Professional Services 100,000 017.000.64.597.76.55.22 Transfer to Fund 422 15,000 Total Expenditure Increase (Decrease) $ 130,000 $ $ $ $ Revenue Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 422.000.331.10.683.00 NOAA/NFWF Grant $ 100,000 $ $ $ $ 422.000.397.38.017.00 Transfer from Fund 017 15,000 001.000.349.18.000.00 Contract Services 15,000 Total Revenue Increase (Decrease) $ 130,000 $ $ $ $ Ending Fund Balance Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 001.000.39.508.00.00.00 Ending Fund Balance $ 15,000 $ $ $ $ 017.000.64.508.40.00.00 Ending Fund Balance (15,000) Total Ending Fund Balance Increase (Decrease) $ $ $ $ $ w C d E C d E Q Lv 7 m N O N N r.+ L x w O as Y t) t0 IL C O .y O 0 7 N O N +r C tv E t C� Q Packet Pg. 200 July 2024 Budget Amendment 2.7.a Budget Amendment for: July 23, 2024 Description: This amendment will program stormwater utility funding for permit assistance related to SEPA and securing a permit from the Department of Fish & Wildlife to perform maintenance of the exisitng diversion structure in lower Perrinville Creek Department: Public Works Division: Engineering Fund 422 STORM Title: Perrinville Sediment Maintenance Permit Assistance and Mitigation Planning Name: Preparer: Rob English Budget Amendment Type New Item For Council To Consider Date of Discussion or Budget Approval? How is this amendment funded? 100% Ending Fund Balance What is the nature of the expenditure? One -Time Is the Expenditure Operating or Capital? Operating Expenditure Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 422.000.72.531.70.41.67 Interfund Services $ 5,700 $ $ $ $ 422.000.72.531.90.41.20 Professional Services 24,300 Total Expenditure Increase (Decrease) $ 30,000 $ $ $ $ Revenue Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 001.000.349.18.000.00 Contract Services $ 5,700 $ $ $ $ Total Revenue Increase (Decrease) $ 5,700 1 $ 1 $ $ Ending Fund Balance Increase (Decrease) Account Number Description 2024 2025 2026 2027 2028 422.000.72.508.00.00.00 Ending Fund Balance $ (30,000) $ $ $ $ 001.000.39.508.00.00.00 Ending Fund Balance 5,700 Total Ending Fund Balance Increase (Decrease) $ (24,300) $ $ $ $ w C Lv E C d E Q d 7 m N O N N r.+ L x w 4) Y t) t0 IL C O .y O 0 7 N O N +r C d E t t) Q Packet Pg. 201 2.7.b ORDINANCE NO. AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING ORDINANCE NO. 4349 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 2024 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. 4349 adopting the final budget for the fiscal year 2024 is hereby amended to reflect the changes shown in Exhibits A, B, C, and D adopted herein by reference. 1 Packet Pg. 202 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 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: M. JEFF TARADAY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. APPROVED: MAYOR, MIKE ROSEN 2 Packet Pg. 203 2.7.b SUMMARY OF ORDINANCE NO. of the City of Edmonds, Washington On the th day of July, 2024, the City Council of the City of Edmonds, passed Ordinance No. XXXX. A summary of the content of said ordinance, consisting of the title, provides as follows: AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING ORDINANCE NO. 4349 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 52024. CITY CLERK, SCOTT PASSEY 3 Packet Pg. 204 2.7.b EXHIBIT "A": Budget Amendment Summary (July 2024) FUND NO. FUND DESCRIPTION 2024 UNAUDITED BEGINNING FUND BALANCE REVENUE EXPENDITURES 2024 ADJUSTED BUDGET ENDING FUND BALANCE 001 GENERAL FUND 2,492,460 51,502,492 52,037,793 1,957,159 009 LEOFF-MEDICAL INS. RESERVE 139,774 250,000 367,140 22,634 011 RISK MANAGEMENT RESERVE FUND - - - - 012 CONTINGENCY RESERVE FUND 2,228,672 - 2,228,672 014 HISTORIC PRESERVATION GI FT FUND 8,944 - 11,701 (2,757) 016 BUILDING MAINTENANCE 3,756,168 112,290 1,533,453 2,335,005 017 MARSH RESTORATION & PRESERVATION FUND 853,595 - 15,000 838,595 018 EDMONDS HOMELESSNESS RESPONSE FUND 200,000 - 200,000 - 019 EDMONDS OPIOID RESPONSE FUND 74,119 50,000 - 124,119 104 DRUG ENFORCEMENT FUND 40,843 4,520 39,000 6,363 111 STREET FUND 4,701 2,630,600 2,662,492 (27,191) 112 COMBINEDSTREET CONST/IIMPROVE 2,734,808 5,396,813 5,395,315 2,736,306 117 MUNICIPALARTS ACQUIS. FUND 657,265 88,631 282,880 463,016 118 MEMORIAL STREET TREE - - - - 120 HOTEL/MOTEL TAX REVENUE FUND 151,247 124,371 131,400 144,218 121 EMPLOYEE PARKING PERMIT FUND 83,814 38,900 106,880 15,834 122 YOUTH SCHOLARSHIP FUND 17,868 1,740 3,000 16,608 123 TOURISM PROMOTIONAL FUND/ARTS 138,157 44,193 43,400 138,950 125 PARK ACQ/IIMPROVEMENT 1,992,459 1,627,900 2,826,746 793,613 126 SPECIAL CAPITAL FUND 3,957,800 1,639,520 2,228,484 3,368,836 127 GIFTS CATALOG FUND 3,140,448 215,830 618,646 2,737,632 130 CEMETERY MAI NTENANCE/IMPROV 196,244 152,990 290,559 58,675 136 PARKS TRUST FUND - - - - 137 CEMETERY MAINTENANCE TRUST FD 1,212,121 55,580 99,500 1,168,201 138 SISTER CITY COMMISSION 18,681 5,680 11,900 12,461 140 BUSINESS IMPROVEMENT DISTRICT FUND 37,682 79,209 103,545 13,346 141 AFFORDABLE & SUPPORTIVE HOUSING FUND 309,127 65,000 - 374,127 142 EDMONDS RESCUE PLAN FUND 36,932 6,869,475 6,869,475 36,932 143 TREE FUND 222,354 220,930 214,800 228,484 211 LID FUND CONTROL - - - - 231 2012 LTGO DEBT SERVICE FUND - 310,420 310,420 - 332 PARKS CONSTRUCTION 139,615 1,169,365 907,660 401,320 421 WATER 35,327,561 12,314,744 13,837,584 33,804,721 422 STORM 19,860,704 9,086,716 9,842,423 19,104,997 423 SEWER/TREATMENT PLANT 64,195,663 20,019,768 23,397,506 60,817,925 424 BOND RESERVE FUND 843,961 1,996,270 1,988,830 851,401 511 EQUIPMENT RENTAL FUND 10,923,491 2,779,730 2,774,212 10,929,009 512 Technology Rental Fund 847,906 2,173,664 2,011,076 1,010,494 617 FIREMEN'S PENSION FUND - - - - Tota Is 156,845,184 121,027,341 131,162,820 146,709,705 C d E C d E Q d 8� 3 m 21 3 N O N d C> C R C L 0 r C d E C d E Q 4) co 3 m 7 N O N C d E L t) ca r r.+ Q Packet Pg. 205 EXHIBIT "B": Budget Amendments by Revenue (July 2024) 2.7.b FUND NO. FUND DESCRIPTION Adopted Budget Ord.#4335 1/1/2024 Adopted Amendment Ord.#4349 2/27/2024 Proposed Amendment Ord.# 2024 Amended Revenue Budget 001 General Fund $ 51,056,792 $ $ 445,700 $ 51,502,492 009 Leoff-Medical Ins. Reserve 250,000 - 250,000 011 Risk Management Reserve Fund - - 012 Contingency Reserve Fund 014 Historic Preservation Gift Fund - - 016 Building Maintenance Fund 112,290 112,290 017 Marsh Restoration & Preservation Fund - - 018 Edmonds Homelessness Response Fund - - 019 Edmonds Opioid Response Fund 50,000 50,000 104 Drug Enforcement Fund 4,520 4,520 111 Street Fund 2,630,600 2,630,600 112 Combined StreetConst/Improve 4,946,998 449,815 5,396,813 117 Municipal Arts Acquis. Fund 87,776 855 88,631 120 Hotel/Motel Tax Revenue Fund 124,371 - 124,371 121 Employee Parking Permit Fund 38,900 38,900 122 Youth Scholarship Fund 1,740 1,740 123 Tourism Promotional Fund/Arts 44,193 44,193 125 ParkAcq/Improvement 1,627,900 1,627,900 126 Special Capital Fund 1,639,520 1,639,520 127 Gifts Catalog Fund 215,830 215,830 130 Cemetery Maintenance/Improv 152,990 152,990 137 Cemetery Maintenance Trust I'd 55,580 55,580 138 Sister City Commission 5,680 5,680 140 Business Improvement District Fund 79,209 79,209 141 Affordable and Supportive Housing Fund 65,000 - 65,000 142 Edmonds Rescue Plan Fund 6,550,000 319,475 6,869,475 143 Tree Fund 220,930 - 220,930 211 Lid Fund Control - - 231 2012 LTGO Debt Service fund 310,420 - 310,420 332 Parks Construction 316,240 853,125 1,169,365 421 Water 12,314,744 - 12,314,744 422 Storm 8,499,216 472,500 115,000 9,086,716 423 Sewer/Treatment Plant 20,019,768 - - 20,019,768 424 Bond Reserve Fund 1,996,270 - 1,996,270 511 Equipment Rental Fund 2,706,730 73,000 2,779,730 512 Technology Rental Fund 2,173,664 - 2,173,664 617 Firemen'S Pension Fund - - - - Totals $ 118,297,871 $ 996,170 $ 1,733,300 $ 121,027,341 C d E C d E Q d 8� 7 m 21 3 N O N d C> C cC C L 0 r C d E C d E Q 4) co 3 m 7 N O N C d E L t) ca w Q Packet Pg. 206 EXHIBIT "C": Budget Amendment by Expenditure (July 2024) 2.7.b FUND NO. FUND DESCRIPTION Adopted Budget Ord.#4335 1/1/2024 Adopted Amendment Ord.#4349 2/27/2024 Proposed Amendment Ord.# 2024 Amended Expenditure Budget 001 General Fund $ 51,892,793 $ $ 145,000 $ 52,037,793 009 Leoff-MedlcalIns. Reserve 367,140 - 367,140 011 Risk Management Reserve Fund - - 012 Contingency Reserve Fund - - 014 Historic Preservation Gift Fund 11,701 - 11,701 016 Building Maintenance Fund 1,125,274 408,179 1,533,453 017 Marsh Restoration & Preservation Fund - 15,000 15,000 018 Edmonds Homelessness Response Fund 200,000 200,000 019 Edmonds Opioid Response Fund - - - 104 Drug Enforcement Fund 39,000 39,000 111 Street Fund 2,662,492 2,662,492 112 Combined StreetConst/Improve 4,699,705 695,610 5,395,315 117 Municipal Arts Acquis. Fund 282,880 - 282,880 120 Hotel/Motel Tax Revenue Fund 131,400 131,400 121 Employee Parking Permit Fund 26,880 80,000 106,880 122 Youth Scholarship Fund 3,000 - 3,000 123 Tourism Promotional Fund/Arts 43,400 - - 43,400 125 ParkAcq/Improvement 2,460,645 316,101 50,000 2,826,746 126 Special Capital Fund 1,379,355 714,754 134,375 2,228,484 127 Gifts Catalog Fund 618,646 - - 618,646 130 Cemetery Maintenance/Improv 290,559 - 290,559 137 Cemetery Maintenance Trust I'd 25,000 74,500 99,500 138 Sister City Commission 11,900 - 11,900 140 Business Improvement District Fund 103,545 103,545 141 Affordable and Supportive Housing Fund - - - 142 Edmonds Rescue Plan Fund 6,550,000 319,475 6,869,475 143 Tree Fund 214,800 - 214,800 211 Lid Fund Control - - 231 2012LTGO Debt Service Fund 310,420 - 310,420 332 Parks Construction 139,685 (85,150) 853,125 907,660 421 Water 13,568,408 269,176 - 13,837,584 422 Storm 8,495,157 1,202,266 145,000 9,842,423 423 Sewer/Treatment Plant 22,720,243 677,263 - 23,397,506 424 Bond Reserve Fund 1,988,830 - 1,988,830 511 Equipment Rental Fund 1,976,212 798,000 2,774,212 512 Technology Rental Fund 2,011,076 - 2,011,076 617 Firemen'S Pension Fund - - - Totals $ 124,150,146 $ 4,662,520 $ 2,350,154 $ 131,162,820 C d E C d E Q d 8� 3 m 21 7 N O N d C> C R C L 0 r C d E C d E Q 4) co 3 m 3 N O N C d E L t) ca w Q Packet Pg. 207 EXHIBIT "D": Budget Amendment Summary (July 2024) 2.7.b Fund Number Proposed Amendment Change in Revenue Proposed Amendment Change in Expense Proposed Amendment Change in Ending Fund Balance 001 445,700 145,000 300,700 016 - 408,179 (408,179) 017 15,000 (15,000) 018 200,000 (200,000) 121 80,000 (80,000) 125 50,000 (50,000) 126 - 134,375 (134,375) 142 319,475 319,475 332 853,125 853,125 422 115,000 145,000 (30,000) Total Change 1,733,300 2,350,154 1 (616,854) Packet Pg. 208