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2012.01.10 CC Committee Meetings Agenda Packet AGENDA EDMONDS CITY COUNCIL Council Chambers, Public Safety Complex 250 5th Avenue North, Edmonds ___________________________________________________ JANUARY 10, 2012 6:00 P.M. - CALL TO ORDER 1.(60 Minutes) Convene in executive session regarding labor negotiations per RCW 42.30.140(4)(b), and potential litigation per RCW 42.30.110(1)(i). 7:00 P.M. - RECONVENE IN OPEN SESSION 2.Adjourn to Committee Meetings. CITY COUNCIL COMMITTEE MEETINGS The City Council Committee meetings are work sessions for the City Council and staff only, the meetings ar open to the public but are not public hearings. The Committees will meet in separate meeting rooms as indicated below. 3.Community Services/Development Services Committee Meeting Room: Council Chambers A. (5 Minutes) Authorization for the Mayor to sign the Recycling Grant Agreement between the City of Edmonds and the Washington State Department of Ecology for 2012-2013. B. (5 Minutes) Authorization for Mayor to sign a two year (2012-2013) Interlocal Agreement for the Lake Ballinger/McAleer Creek Watershed Forum and authorize $1,600 per year for administrative costs. C. (15 Minutes) Concessions in parks, Edmonds City Code changes. D. (20 Minutes) Regulation of bed and breakfast establishments. E.(10 Minutes)Public comments (3-minute limit per person) 4.Finance Committee Meeting Room: Jury Meeting Room A. (15 Minutes) Purchasing Policy Update Packet Page 1 of 97 B. (10 Minutes) Quarterly report regarding fiber optic opportunities. C. (10 Minutes) Investment Policy D. (10 Minutes) General Fund Update - November 2011 E.(10 Minutes)Public comments (3-minute limit per person) 5.Public Safety and Human Resources Committee A. (15 Minutes) Reclassification of positions (SEIU union). B.(10 Minutes)Public comments (3-minute limit per person) ADJOURN Packet Page 2 of 97 AM-4475 Item #: 3. A. City Council Committee Meetings Date: 01/10/2012 Time:5 Minutes Submitted For:Phil Williams Submitted By:Kody McConnell Department:Public Works Committee:Community/Development Services Type:Action Information Subject Title Authorization for the Mayor to sign the Recycling Grant Agreement between the City of Edmonds and the Washington State Department of Ecology for 2012-2013. Recommendation from Mayor and Staff Forward this item to the consent agenda for approval at the January 17, 2012, City Council meeting. It is further recommended that City Council authorize the Mayor to sign the recycling grant agreement between the City of Edmonds and the Washington State Department of Ecology in order to continue to fund the City's waste prevention and recycling program for 2012-2013. Previous Council Action The City of Edmonds Recycling Coordinator has sought and secured funds directly from the Washington State Department of Ecology since 1996 by means of an allocation received through the Snohomish County Solid Waste Management Division. Narrative The next cycle of state funding, which supports the recycling coordinator and the City's on-going waste prevention and recycling program has a project end date of June 30, 2013. This date was chosen to coincide with the state's biennium time period which will streamline the administration process. The grant offer represents a 75/25 match. The state's offer to Edmonds is $34,344. The City's 25% match, which is budgeted under the Combined Utility Fund 411, is $11,448 for an available program funding amount of $45,792. Attachments Recycling Grant Agreement Form Review Inbox Reviewed By Date Public Works Phil Williams 01/05/2012 12:09 PM City Clerk Sandy Chase 01/05/2012 12:11 PM Mayor Dave Earling 01/05/2012 03:04 PM Final Approval Sandy Chase 01/05/2012 03:07 PM Form Started By: Kody McConnell Started On: 01/03/2012 08:16 AM Final Approval Date: 01/05/2012 Packet Page 3 of 97 COORDINATED PREVENTION GRANT AGREEMENT BETWEEN THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY AND CITY OF EDMONDS Grant No.: G1200260 This is a binding agreement entered into by and between the state of Washington Department of Ecology, hereinafter referred to as ECOLOGY or DEPARTMENT, and the City of Edmonds, hereinafter referred to as the RECIPIENT, to carry out the activities described herein. JURISDICTION: MAILING ADDRESS: CITY, STATE, ZIP: City of Edmonds 121 Fifth Avenue N. Edmonds, WA 98020 RECIPIENT GRANT COORDINATOR: TELEPHONE: FAX: E-MAIL: Steve Fisher (425) 771-0235 (425) 744-6057 recycleguy@ci.edmonds.wa.us RECIPIENT BILLING/INVOICE COORDINATOR: TELEPHONE: FAX: E-MAIL: Lori Cress (425) 771-0240 (425) 771-0265 cress@ci.edmonds.wa.us ECOLOGY GRANT OFFICER: TELEPHONE: FAX: E-MAIL: Taisa Welhasch (425) 649-7266 (425) 649-7193 taisa.welhasch@ecy.wa.gov FUNDING SOURCE MAXIMUM ELIGIBLE COST STATE GRANT SHARE LOCAL SHARE STATE MAXIMUM GRANT PERCENT FEDERAL TAX IDENTIFICATION NO. Local Toxics Control Account $45,792 $34,344 $11,448 75 % 91-6001244 EFFECTIVE DATE OF THE AGREEMENT 01-01-2012 EXPIRATION DATE OF THE AGREEMENT 06-30-2013 Packet Page 4 of 97 Grant No. G1200260 City of Edmonds Page 2 of 15 PART 1: SCOPE OF WORK The task(s) set forth below summarize the RECIPIENT’S activities to be performed under this agreement. Costs are limited to those approved by ECOLOGY as outlined in the current scope of work and budget. The RECIPIENT must complete all deliverables by the expiration date of this agreement, including delivery of purchases, unless otherwise stated in the scope of work or approved by ECOLOGY in writing. Note: The term “task” as used in this agreement is interchangeable with the term “project” as used on the online Solid Waste Information Clearinghouse and “element” as used on payment request forms. The “Maximum Eligible Cost” is the maximum amount of eligible costs incurred by a RECIPIENT that ECOLOGY can reimburse at a rate of 75 percent under this grant. The RECIPIENT shall identify the work plan and activities by “Quarter”. A quarter is defined by calendar year and begins with the first three months of the grant period. The RECIPIENT may negotiate changes to the work plan with the ECOLOGY grant officer. ECOLOGY shall document mutually agreed changes to the plan in writing. CATEGORY: Waste Reduction & Recycling (WRR) 1. TASK TITLE: WRR Education and Outreach Maximum Eligible Task Cost: $45,792 Task Description: The RECIPIENT will provide waste reduction and recycling (WRR) outreach and assistance to multi-family properties, businesses and citizens in the City of Edmonds. The RECIPIENT will continue to promote awareness and use of all recycle and reuse services, options and opportunities throughout the community including proper destination of unwanted household hazardous wastes and electronics. The RECIPIENT will conduct a Christmas tree-cycling activity with the Boy Scouts and will research public recycling opportunities with the Edmonds Downtown Merchants Association. The RECIPIENT will continue to review proposed commercial and multi-family building plans for proper siting of required recycling collection areas. The RECIPIENT will work with the City’s certified waste haulers to track recycling diversion at single-family and multi-family properties and conduct further outreach to those showing poor performance and/or contamination issues. The RECIPIENT will also conduct WRR presentations to elementary schools. The RECIPIENT will support recycling collection and make available recycling containers for public events. The RECIPIENT may research the possibility of participating in a pilot collection site for a reverse vending machine. Goal Statement: The goal of this task is to increase and maintain public awareness and education of waste reduction, recycling and sustainability, and to promote proper and effective waste prevention, recycling, and disposal habits to the residents and businesses of Edmonds. The task will be coordinated with the County, other regional governments, and Edmonds' certified waste haulers. Outcome Statement: Over the 18-month grant period, the RECIPIENT expects to respond to approximately 50 businesses and 150 citizens about reuse and recycling options. The Packet Page 5 of 97 Grant No. G1200260 City of Edmonds Page 3 of 15 RECIPIENT also expects that approximately 10 multi-family properties will start new recycling programs, diverting 26 tons of recyclable material from the waste stream. Work Plan, Deliverables and Activities Timeline: Quarter Activity Q1 Update multi-family database and use hauler reports to check sector recycling performance. Start research on developing public recycling collection in downtown city core. Conduct WRR community and business outreach. Q2 Prepare targeted mailing of curbside recycling information to selected residential neighborhoods. Ongoing WRR community and business outreach. Q3 Monitor targeted single-family outreach. Ongoing WRR community and business outreach. Q4 Monitor targeted single-family outreach. Ongoing WRR community and business outreach. Q5 Monitor targeted single-family outreach. Coordinate and assist (with publicity) local scout troops with their Christmas tree- cycling activity. Ongoing WRR community and business outreach. Q6 Monitor targeted single-family outreach. Finalize targeted single-family outreach. Ongoing WRR community and business outreach. Method of Evaluation: The RECIPIENT will track the number of responses to businesses and residents and the number of new multi-family properties (and individual units) that started using the recycle collection service. Collection data from the hauler will be used for determining total volume and/or weight of recyclables diverted and calculating any percentage of resulting increase. The RECIPIENT will also compare subsequent reports on the targeted single-family neighborhood with an established database, to note any/all increases in participation, set-outs, tons diverted, and decreases in contamination. PART 2: BUDGET TASK Maximum Eligible Cost [Category]: Waste Reduction & Recycling (WRR) $ 45,792 1. [Task Title]: Public Outreach and Education $ 45,792 Packet Page 6 of 97 Grant No. G1200260 City of Edmonds Page 4 of 15 TOTAL MAXIMUM ELIGIBLE COST $ 45,792 STATE SHARE (75%) $ 34,344 LOCAL CASH MATCH (25%) $ 11,448 PART 3: BUDGET CONDITIONS A. ECOLOGY requires the RECIPIENT to provide a match of 25 percent of the maximum eligible cost with cash or interlocal costs. Interlocal costs are the only type of in-kind contributions the RECIPIENT may use as match. B. If parties are contributing to the local share of task costs (match) through interlocal-in kind contributions, the RECIPIENT shall negotiate a memoranda of understanding or other written agreement confirming the contribution between the parties. These agreements shall specify the exact work to be accomplished and be signed by all parties contributing to the local match of this task. Copies of these agreements shall be made part of the RECIPIENT’S grant file and submitted to ECOLOGY. C. Overhead is eligible at a rate up to 25 percent of staff salaries and benefits for actual time spent on tasks outlined in this agreement. Salaries and benefits to administer the grant agreement are eligible (excluding time spent to write a grant application). D. The RECIPIENT must submit a written request to ECOLOGY to amend budgets between grant tasks, to modify a scope of work, or for a budget increase or decrease. To increase or decrease the agreement’s total maximum eligible cost or change the scope of work for any tasks as outlined in this grant agreement, ECOLOGY requires a formal amendment. E. The RECIPIENT must provide ECOLOGY with an updated Spending Plan when requested by ECOLOGY. F. Any work performed or costs incurred prior to the effective date or after the expiration date of this agreement will be at the sole expense of the RECIPIENT. PART 4: SPECIAL TERMS AND CONDITIONS A. BILLING 1. Unless otherwise approved in writing by ECOLOGY, the RECIPIENT shall submit a payment request to ECOLOGY at least quarterly (by calendar year), but no more often than once per month. 2. The RECIPIENT must submit payment requests on approved State Invoice Voucher forms: A19- 1A, B1/B2, C1/C2. Until there is a change in agency policy, the recipient must submit an A-19 signed in blue ink by an authorized person. The B2 and C2 forms are acceptable in electronic format. The RECIPIENT must also include all backup documentation to support items listed on Form C1/C2. The budget is organized by task and therefore, the RECIPIENT shall itemize costs Packet Page 7 of 97 Grant No. G1200260 City of Edmonds Page 5 of 15 by task on Form C1/C2 and Form B1/B2. Forms B1 and C1 are used only when interlocal costs are used towards the 25% match. 3. Any income directly generated as a result of the activities funded by this grant shall be reported as a credit against the expenses of that activity, as required by ECOLOGY’S Administrative Requirements for Recipients of Ecology Grants and Loans, Ecology Publication #91-18. 4. Payment to RECIPIENT will be issued through Washington State’s Department of Enterprise Services (DES). DES maintains a central vendor file for Washington state agency use to process vendor payments. This allows vendors to receive payments from all participating state agencies. RECIPIENTS must register as a state-wide vendor (SWV) by submitting a state-wide vendor registration form and an IRS W-9 form http://www.ofm.wa.gov/isd/vendors/payee_registration.doc to DES. If you have questions about the vendor registration process you can contact DES at the Payee Help Desk at (360) 664-7779 or email to payeehelpdesk@ofm.wa.gov. B. REPORTING 1. The RECIPIENT shall submit a progress report with each payment request but no less often than quarterly unless otherwise approved by ECOLOGY. These reports shall include activities that support incurred costs shown on the C1 or C2 of the payment request, and must be submitted on- line through the Solid Waste Information Clearinghouse. 2. RECIPIENT’s must submit a final report of task outcomes through the Solid Waste Information Clearinghouse. The final report must be submitted before ECOLOGY can process a final payment request. a. Final Performance Analysis (FPA) reports are used for all Planning and Implementation tasks and special tasks in a solid waste enforcement grant (special tasks do not include regular solid waste enforcement work such as enforcing solid waste codes). b. For Solid Waste Enforcement tasks, recipients must submit their final quarterly solid waste enforcement progress report. C. DOCUMENTATION 1. The RECIPIENT shall submit supporting documents with each payment request. This includes cancelled checks, invoices, purchase receipts, payroll records, time and attendance records, contract award documents, and any document deemed relevant by ECOLOGY to establish the approval of an expense listed on Form C1/C2. Documentation shall be clear and legible and organized by task in the order in which it is itemized on Form C1/C2. 2. The RECIPIENT shall maintain grant related material and supporting documents including invoice vouchers sent to ECOLOGY in a common file. The Recipient shall keep all supporting documents for audit purposes for at least three years from the date the agreement is closed by ECOLOGY. 3. The RECIPIENT shall use the ECOLOGY provided Form E, or an equivalent time accounting document approved by ECOLOGY, to record staff hours being charged to the grant. Packet Page 8 of 97 Grant No. G1200260 City of Edmonds Page 6 of 15 D. TRAINING The RECIPIENT agrees to participate in any ECOLOGY recommended trainings related to managing a CPG agreement. E. MINORITY AND WOMEN’S BUSINESS PARTICIPATION The RECIPIENT is encouraged to solicit and recruit, to the extent possible, certified minority-owned (MBE) and women-owned (WBE) businesses in purchases and contracts initiated after the effective date of this agreement. Contract awards or rejections cannot be made based on MBE or WBE participation. M/WBE participation is encouraged, however, and the RECIPIENT and all prospective bidders or persons submitting qualifications should take the following steps, when possible, in any procurement initiated after the effective date of this agreement: a) Include qualified minority and women's businesses on solicitation lists. b) Assure that qualified minority and women's businesses are solicited whenever they are potential sources of services or supplies. c) Divide the total requirements, when economically feasible, into smaller tasks or quantities, to permit maximum participation by qualified minority and women's businesses. d) Establish delivery schedules, where work requirements permit, which will encourage participation of qualified minority and women's businesses. e) Use the services and assistance of the State Office of Minority and Women's Business Enterprises (OMWBE) and the Office of Minority Business Enterprises of the U.S. Department of Commerce, as appropriate. f) The RECIPIENT should report payments made to qualified firms to ECOLOGY at the time of submitting each invoice. Please include the following information on ECOLOGY provided form (Form D). g) Name and state OMWBE certification number (if available) of any qualified firm receiving funds under the invoice, including any sub-and/or sub-subcontractors. h) The total dollar amount paid to qualified firms under this invoice. F. PROCUREMENT AND CONTRACTS a) The RECIPIENT shall provide written certification that it will follow its standard procurement procedures and/or applicable state law in awarding contracts; RECIPIENTS with no formal procurement procedures must certify that they have complied with the "Standards for Competitive Solicitation," found in Part V of the Administrative Requirements for Recipients of Ecology Grants and Loans – Yellow Book, Ecology Publication #91-18 (Revised September 2005). b) Upon issuance, the RECIPIENT shall submit a copy of all requests for qualifications (RFQs), requests for proposals (RFPs), and bid documents relating to this grant agreement to ECOLOGY’S grant officer. Packet Page 9 of 97 Grant No. G1200260 City of Edmonds Page 7 of 15 c) Prior to contract execution, the RECIPIENT shall submit all draft documents and a copy of the draft proposed contract to ECOLOGY’S grant officer for review. Following the contract execution, the RECIPIENT shall submit a copy of the final contract to ECOLOGY’s assigned grant officer. d) Unless a specific purchase of equipment or real property is already written into the grant agreement, the RECIPIENT must submit a written request to ECOLOGY to purchase any equipment or real property (Property) with a single unit purchase price of $5,000 or more. The request shall include the justification for the purchase of the property, the total cost, the intended use, and the anticipated useful life of the property. The request must be approved in writing by ECOLOGY prior to the purchase. G. USE OF EXISTING CONTRACTS The RECIPIENT may use existing contracts that conform to adopted procurement procedures and applicable state laws. The RECIPIENT shall notify ECOLOGY if it used contracts entered into prior to the execution of the grant agreement for performance of grant-funded activities. The RECIPIENT shall submit a copy of the contract to its assigned ECOLOGY grant officer. The grant eligibility of products or services secured by the RECIPIENT under existing contracts used to perform the scope of work in this agreement must be deemed allowable and reasonable by ECOLOGY prior to cost reimbursement. H. PROPERTY AND EQUIPMENT MANAGEMENT AND DISPOSITION For equipment or property purchased with a cost of at least $5,000 per unit or functional system, the RECIPIENT must utilize an inventory control system, including physical inventory to document the ongoing use, a description of the item (including serial or vehicle identification number (VIN) when possible), and location. This information shall be submitted to ECOLOGY upon request until final disposition is made. The RECIPIENT shall investigate, document, and report to ECOLOGY any loss, theft or damage upon discovery of such conditions. The RECIPIENT will follow manufacturer recommended maintenance procedures to keep the property in good operating condition. The RECIPIENT shall submit a written request to the ECOLOGY for any intent to change the use of the equipment as outlined in this grant agreement, including uses past the expiration date of this agreement. Disposition of the equipment shall be determined by ECOLOGY and documented in writing. A copy of the determination will be provided to the RECIPIENT upon ECOLOGY’s closure of the grant agreement. o If the equipment is necessary for the continued operation of the project or other projects administered through ECOLOGY, the grant officer may instruct the recipient to retain the equipment with no further compensation to ECOLOGY. o If the project has no further significant use for the equipment, the grant officer may instruct the recipient to retain or sell the equipment and pay ECOLOGY an amount equal to ECOLOGY’s share of the current fair market value, sale proceeds or other price agreed upon by the grant officer. o The grant officer may instruct the recipient to transfer title to ECOLOGY or to a third party named by ECOLOGY who is eligible under existing statutes. Packet Page 10 of 97 Grant No. G1200260 City of Edmonds Page 8 of 15 I. ALL WRITINGS CONTAINED HEREIN This agreement, including the “General Terms and Conditions,” Program Guidelines – Coordinated Prevention Grants 2012-2013, and ECOLOGY’S Administrative Requirements for Recipients of Ecology Grants and Loans, Ecology Publication #91-18, contain the entire understanding between the parties, and there are no other understandings or representations except as those set forth or incorporated by reference herein. No subsequent modification(s) or amendment(s) of this grant agreement shall be of any force or effect unless in writing, signed by authorized representatives of the RECIPIENT and ECOLOGY and made part of this agreement. J. ARCHEOLOGICAL AND CULTURAL RESOURCES The RECIPIENT shall take reasonable action to avoid, minimize, or mitigate adverse effects to the archeological or cultural resources. RECIPIENT shall immediately cease work and notify ECOLOGY if any archeological or cultural resources are found while conducting work under this agreement. In the event that historical or cultural artifacts are discovered at the project site, the RECIPIENT shall also notify the state historic preservation officer at the Department of Archaeology and Historic Preservation at (360) 586-3065. Applicability of the National Historic Preservation Act (NHPA) may require the RECIPIENT to obtain a permit pursuant to Chapter 27.53 RCW prior to conducting on-site activity with the potential to impact historic properties (such as invasive sampling, dredging, or cleanup actions). K. ENVIRONMENTALLY PREFERRABLE PURCHASING In a joint effort to save costs, produce energy savings and prevent waste, the RECIPIENT agrees to use both sides of paper sheets for copying and printing. The RECIPIENT also agrees to purchase paper products with a high level of post consumer recycled content whenever it is comparable in quality, availability and price PART 5: GENERAL TERMS AND CONDITIONS Pertaining to Grant and Loan Agreements of the Department of Ecology, SS-010 Rev. 04/04 A. RECIPIENT PERFORMANCE All activities for which grant/loan funds are to be used shall be accomplished by the RECIPIENT and RECIPIENT's employees. The RECIPIENT shall only use contractor/consultant assistance if that has been included in the agreement’s final scope of work and budget. B. SUBGRANTEE/CONTRACTOR COMPLIANCE The RECIPIENT must ensure that all subgrantees and contractors comply with the terms and conditions of this agreement. C. THIRD PARTY BENEFICIARY The RECIPIENT shall ensure that in all subcontracts entered into by the RECIPIENT pursuant to this agreement, the state of Washington is named as an express third-party beneficiary of such subcontracts with full rights as such. D. CONTRACTING FOR SERVICES (BIDDING) Packet Page 11 of 97 Grant No. G1200260 City of Edmonds Page 9 of 15 Contracts for construction, purchase of equipment and professional architectural and engineering services shall be awarded through a competitive process, if required by State law. RECIPIENT shall retain copies of all bids received and contracts awarded, for inspection and use by the DEPARTMENT. E. ASSIGNMENTS No right or claim of the RECIPIENT arising under this agreement shall be transferred or assigned by the RECIPIENT. F. COMPLIANCE WITH ALL LAWS 1. The RECIPIENT shall comply fully with all applicable Federal, State and local laws, orders, regulations and permits. Prior to commencement of any construction, the RECIPIENT shall secure the necessary approvals and permits required by authorities having jurisdiction over the project, provide assurance to the DEPARTMENT that all approvals and permits have been secured, and make copies available to the DEPARTMENT upon request. 2. Discrimination. The DEPARTMENT and the RECIPIENT agree to be bound by all Federal and State laws, regulations, and policies against discrimination. The RECIPIENT further agrees to affirmatively support the program of the Office of Minority and Women's Business Enterprises to the maximum extent possible. If the agreement is federally-funded, the RECIPIENT shall report to the DEPARTMENT the percent of grant/loan funds available to women or minority owned businesses. 3. Wages and Job Safety. The RECIPIENT agrees to comply with all applicable laws, regulations, and policies of the United States and the State of Washington which affect wages and job safety. 4. Industrial Insurance. The RECIPIENT certifies full compliance with all applicable state industrial insurance requirements. If the RECIPIENT fails to comply with such laws, the DEPARTMENT shall have the right to immediately terminate this agreement for cause as provided in Section K.1, herein. G. KICKBACKS The RECIPIENT is prohibited from inducing by any means any person employed or otherwise involved in this project to give up any part of the compensation to which he/she is otherwise entitled or, receive any fee, commission or gift in return for award of a subcontract hereunder. H. AUDITS AND INSPECTIONS 1. The RECIPIENT shall maintain complete program and financial records relating to this agreement. Such records shall clearly indicate total receipts and expenditures by fund source and task or object. All grant/loan records shall be kept in a manner which provides an audit trail for all expenditures. All records shall be kept in a common file to facilitate audits and inspections. Engineering documentation and field inspection reports of all construction work accomplished under this agreement shall be maintained by the RECIPIENT. Packet Page 12 of 97 Grant No. G1200260 City of Edmonds Page 10 of 15 2. All grant/loan records shall be open for audit or inspection by the DEPARTMENT or by any duly authorized audit representative of the State of Washington for a period of at least three years after the final grant payment/loan repayment or any dispute resolution hereunder. If any such audits identify discrepancies in the financial records, the RECIPIENT shall provide clarification and/or make adjustments accordingly. 3. All work performed under this agreement and any equipment purchased, shall be made available to the DEPARTMENT and to any authorized state, federal or local representative for inspection at any time during the course of this agreement and for at least three years following grant/loan termination or dispute resolution hereunder. 4. RECIPIENT shall meet the provisions in OMB Circular A-133 (Audits of States, Local Governments & Non Profit Organizations), including the compliance Supplement to OMB Circular A-133, if the RECIPIENT expends $500,000 or more in a year in Federal funds. The $500,000 threshold for each year is a cumulative total of all federal funding from all sources. The RECIPIENT must forward a copy of the audit along with the RECIPIENT’S response and the final corrective action plan to the DEPARTMENT within ninety (90) days of the date of the audit report. I. PERFORMANCE REPORTING The RECIPIENT shall submit progress reports to the DEPARTMENT with each payment request or such other schedule as set forth in the Special Conditions. The RECIPIENT shall also report in writing to the DEPARTMENT any problems, delays or adverse conditions which will materially affect their ability to meet project objectives or time schedules. This disclosure shall be accompanied by a statement of the action taken or proposed and any assistance needed from the DEPARTMENT to resolve the situation. Payments may be withheld if required progress reports are not submitted. Quarterly reports shall cover the periods January 1 through March 31, April 1 through June 30, July 1 through September 30, and October 1 through December 31. Reports shall be due within thirty (30) days following the end of the quarter being reported. J. COMPENSATION 1. Method of compensation. Payment shall normally be made on a reimbursable basis as specified in the grant agreement and no more often than once per month. Each request for payment will be submitted by the RECIPIENT on State voucher request forms provided by the DEPARTMENT along with documentation of the expenses. Payments shall be made for each task/phase of the project, or portion thereof, as set out in the Scope of Work when completed by the RECIPIENT and approved as satisfactory by the Project Officer. The payment request form and supportive documents must itemize all allowable costs by major elements as described in the Scope of Work. Instructions for submitting the payment requests are found in "Administrative Requirements for Recipients of Ecology Grants and Loans", part IV, published by the DEPARTMENT. A copy of this document shall be furnished to the RECIPIENT. When payment requests are approved by the DEPARTMENT, payments will be made to the mutually agreed upon designee. Payment requests shall be submitted to the DEPARTMENT and directed to the Project Officer assigned to administer this agreement. Packet Page 13 of 97 Grant No. G1200260 City of Edmonds Page 11 of 15 2. Period of Compensation. Payments shall only be made for actions of the RECIPIENT pursuant to the grant/loan agreement and performed after the effective date and prior to the expiration date of this agreement, unless those dates are specifically modified in writing as provided herein. 3. Final Request(s) for Payment. The RECIPIENT should submit final requests for compensation within forty-five (45) days after the expiration date of this agreement and within fifteen (15) days after the end of a fiscal biennium. Failure to comply may result in delayed reimbursement. 4. Performance Guarantee. The DEPARTMENT may withhold an amount not to exceed ten percent (10%) of each reimbursement payment as security for the RECIPIENT's performance. Monies withheld by the DEPARTMENT may be paid to the RECIPIENT when the project(s) described herein, or a portion thereof, have been completed if, in the DEPARTMENT's sole discretion, such payment is reasonable and approved according to this agreement and, as appropriate, upon completion of an audit as specified under section J.6 herein. 5. Unauthorized Expenditures. All payments to the RECIPIENT may be subject to final audit by the DEPARTMENT and any unauthorized expenditure(s) charged to this grant/loan shall be refunded to the DEPARTMENT by the RECIPIENT. 6. Mileage and Per Diem. If mileage and per diem are paid to the employees of the RECIPIENT or other public entities, it shall not exceed the amount allowed under state law for state employees. 7. Overhead Costs. No reimbursement for overhead costs shall be allowed unless provided for in the Scope of Work hereunder. K. TERMINATION 1. For Cause. The obligation of the DEPARTMENT to the RECIPIENT is contingent upon satisfactory performance by the RECIPIENT of all of its obligations under this agreement. In the event the RECIPIENT unjustifiably fails, in the opinion of the DEPARTMENT, to perform any obligation required of it by this agreement, the DEPARTMENT may refuse to pay any further funds thereunder and/or terminate this agreement by giving written notice of termination. A written notice of termination shall be given at least five working days prior to the effective date of termination. In that event, all finished or unfinished documents, data studies, surveys, drawings, maps, models, photographs, and reports or other materials prepared by the RECIPIENT under this agreement, at the option of the DEPARTMENT, shall become Department property and the RECIPIENT shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials. Despite the above, the RECIPIENT shall not be relieved of any liability to the DEPARTMENT for damages sustained by the DEPARTMENT and/or the State of Washington because of any breach of agreement by the RECIPIENT. The DEPARTMENT may withhold payments for the purpose of setoff until such time as the exact amount of damages due the DEPARTMENT from the RECIPIENT is determined. 2. Insufficient Funds. The obligation of the DEPARTMENT to make payments is contingent on the availability of state and federal funds through legislative appropriation and state allotment. When this agreement crosses over state fiscal years the obligation of the DEPARTMENT is contingent upon the appropriation of funds during the next fiscal year. The failure to appropriate or allot such funds shall be good cause to terminate this agreement as provided in paragraph K.1 above. Packet Page 14 of 97 Grant No. G1200260 City of Edmonds Page 12 of 15 When this agreement crosses the RECIPIENT's fiscal year, the obligation of the RECIPIENT to continue or complete the project described herein shall be contingent upon appropriation of funds by the RECIPIENT's governing body; provided, however, that nothing contained herein shall preclude the DEPARTMENT from demanding repayment of ALL funds paid to the RECIPIENT in accordance with Section O herein. 3. Failure to Commence Work. In the event the RECIPIENT fails to commence work on the project funded herein within four months after the effective date of this agreement, or by any date mutually agreed upon in writing for commencement of work, the DEPARTMENT reserves the right to terminate this agreement. L. WAIVER Waiver of any RECIPIENT default is not a waiver of any subsequent default. Waiver of a breach of any provision of this agreement is not a waiver of any subsequent breach and will not be construed as a modification of the terms of this agreement unless stated as such in writing by the authorized representative of the DEPARTMENT. M. PROPERTY RIGHTS 1. Copyrights and Patents. When the RECIPIENT creates any copyrightable materials or invents any patentable property, the RECIPIENT may copyright or patent the same but the DEPARTMENT retains a royalty-free, nonexclusive and irrevocable license to reproduce, publish, recover or otherwise use the material(s) or property and to authorize others to use the same for federal, state or local government purposes. Where federal funding is involved, the federal government may have a proprietary interest in patent rights to any inventions that are developed by the RECIPIENT as provided in 35 U.S.C. 200-212. 2. Publications. When the RECIPIENT or persons employed by the RECIPIENT use or publish information of the DEPARTMENT; present papers, lectures, or seminars involving information supplied by the DEPARTMENT; use logos, reports, maps or other data, in printed reports, signs, brochures, pamphlets, etc., appropriate credit shall be given to the DEPARTMENT. 3. Tangible Property Rights. The DEPARTMENT's current edition of "Administrative Requirements for Recipients of Ecology Grants and Loans", Part V, shall control the use and disposition of all real and personal property purchased wholly or in part with funds furnished by the DEPARTMENT in the absence of state, federal statute(s), regulation(s), or policy(s) to the contrary or upon specific instructions with respect thereto in the Scope of Work. 4. Personal Property Furnished by the DEPARTMENT. When the DEPARTMENT provides personal property directly to the RECIPIENT for use in performance of the project, it shall be returned to the DEPARTMENT prior to final payment by the DEPARTMENT. If said property is lost, stolen or damaged while in the RECIPIENT's possession, the DEPARTMENT shall be reimbursed in cash or by setoff by the RECIPIENT for the fair market value of such property. 5. Acquisition Projects. The following provisions shall apply if the project covered by this agreement includes funds for the acquisition of land or facilities: a. Prior to disbursement of funds provided for in this agreement, the RECIPIENT shall establish that the cost of land/or facilities is fair and reasonable. Packet Page 15 of 97 Grant No. G1200260 City of Edmonds Page 13 of 15 b. The RECIPIENT shall provide satisfactory evidence of title or ability to acquire title for each parcel prior to disbursement of funds provided by this agreement. Such evidence may include title insurance policies, Torrens certificates, or abstracts, and attorney's opinions establishing that the land is free from any impediment, lien, or claim which would impair the uses contemplated by this agreement. 6. Conversions. Regardless of the contract termination date shown on the cover sheet, the RECIPIENT shall not at any time convert any equipment, property or facility acquired or developed pursuant to this agreement to uses other than those for which assistance was originally approved without prior written approval of the DEPARTMENT. Such approval may be conditioned upon payment to the DEPARTMENT of that portion of the proceeds of the sale, lease or other conversion or encumbrance which monies granted pursuant to this agreement bear to the total acquisition, purchase or construction costs of such property. N. SUSTAINABLE PRODUCTS In order to sustain Washington’s natural resources and ecosystems, the RECIPIENT is encouraged to implement sustainable practices where and when possible. These practices include use of clean energy, and purchase and use of sustainably produced products (e.g. recycled paper). For more information, see www.ecy.wa.gov/sustainability. O. RECOVERY OF PAYMENTS TO RECIPIENT The right of the RECIPIENT to retain monies paid to it as reimbursement payments is contingent upon satisfactory performance of this agreement including the satisfactory completion of the project described in the Scope of Work. In the event the RECIPIENT fails, for any reason, to perform obligations required of it by this agreement, the RECIPIENT may, at the DEPARTMENT's sole discretion, be required to repay to the DEPARTMENT all grant/loan funds disbursed to the RECIPIENT for those parts of the project that are rendered worthless in the opinion of the DEPARTMENT by such failure to perform. Interest shall accrue at the rate of twelve percent (12%) per year from the time the DEPARTMENT demands repayment of funds. If payments have been discontinued by the DEPARTMENT due to insufficient funds as in Section K.2 above, the RECIPIENT shall not be obligated to repay monies which had been paid to the RECIPIENT prior to such termination. Any property acquired under this agreement, at the option of the DEPARTMENT, may become the DEPARTMENT'S property and the RECIPIENT'S liability to repay monies shall be reduced by an amount reflecting the fair value of such property. P. PROJECT APPROVAL The extent and character of all work and services to be performed under this agreement by the RECIPIENT shall be subject to the review and approval of the DEPARTMENT through the Project Officer or other designated official to whom the RECIPIENT shall report and be responsible. In the event there is a dispute with regard to the extent and character of the work to be done, the determination of the Project Officer or other designated official as to the extent and character of the work to be done shall govern. The RECIPIENT shall have the right to appeal decisions as provided for below. Packet Page 16 of 97 Grant No. G1200260 City of Edmonds Page 14 of 15 Q. DISPUTES Except as otherwise provided in this agreement, any dispute concerning a question of fact arising under this agreement which is not disposed of in writing shall be decided by the Project Officer or other designated official who shall provide a written statement of decision to the RECIPIENT. The decision of the Project Officer or other designated official shall be final and conclusive unless, within thirty days from the date of receipt of such statement, the RECIPIENT mails or otherwise furnishes to the Director of the DEPARTMENT a written appeal. In connection with appeal of any proceeding under this clause, the RECIPIENT shall have the opportunity to be heard and to offer evidence in support of this appeal. The decision of the Director or duly authorized representative for the determination of such appeals shall be final and conclusive. Appeals from the Director's determination shall be brought in the Superior Court of Thurston County. Review of the decision of the Director will not be sought before either the Pollution Control Hearings Board or the Shoreline Hearings Board. Pending final decision of dispute hereunder, the RECIPIENT shall proceed diligently with the performance of this agreement and in accordance with the decision rendered. R. CONFLICT OF INTEREST No officer, member, agent, or employee of either party to this agreement who exercises any function or responsibility in the review, approval, or carrying out of this agreement, shall participate in any decision which affects his/her personal interest or the interest of any corporation, partnership or association in which he/she is, directly or indirectly interested; nor shall he/she have any personal or pecuniary interest, direct or indirect, in this agreement or the proceeds thereof. S. INDEMNIFICATION 1. The DEPARTMENT shall in no way be held responsible for payment of salaries, consultant's fees, and other costs related to the project described herein, except as provided in the Scope of Work. 2. To the extent that the Constitution and laws of the State of Washington permit, each party shall indemnify and hold the other harmless from and against any liability for any or all injuries to persons or property arising from the negligent act or omission of that party or that party's agents or employees arising out of this agreement. T. GOVERNING LAW This agreement shall be governed by the laws of the State of Washington. U. SEVERABILITY If any provision of this agreement or any provision of any document incorporated by reference shall be held invalid, such invalidity shall not affect the other provisions of this agreement which can be given effect without the invalid provision, and to this end the provisions of this agreement are declared to be severable. Packet Page 17 of 97 Grant No. G1200260 City of Edmonds Page 15 of 15 V. PRECEDENCE In the event of inconsistency in this agreement, unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: (a) applicable Federal and State statutes and regulations; (b) Scope of Work; (c) Special Terms and Conditions; (d) Any terms incorporated herein by reference including the "Administrative Requirements for Recipients of Ecology Grants and Loans"; and (e) the General Terms and Conditions. IN WITNESS WHEREOF, the parties sign this Agreement: STATE OF WASHINGTON CITY OF EDMONDS DEPARTMENT OF ECOLOGY Laurie G. Davies Date Date Program Manager Waste 2 Resources Program Printed Name and Title of Signatory APPROVED AS TO FORM ONLY Assistant Attorney General Packet Page 18 of 97 AM-4476 Item #: 3. B. City Council Committee Meetings Date: 01/10/2012 Time:5 Minutes Submitted For:Jerry Shuster Submitted By:Megan Cruz Department:Engineering Committee:Community/Development Services Type:Action Information Subject Title Authorization for Mayor to sign a two year (2012-2013) Interlocal Agreement for the Lake Ballinger/McAleer Creek Watershed Forum and authorize $1,600 per year for administrative costs. Recommendation from Mayor and Staff Forward this item to the consent agenda for approval at the January 17, 2012 Council meeting. Previous Council Action On July 1, 2008, Council authorized Mayor to sign an Interlocal Agreement with all jurisdictions within the Lake Ballinger/McAleer Creek watershed areas. On September 7, 2010, Council authorized Mayor to sign an Interlocal Agreement and authorize up to $2,400 towards the administrative costs of operating the Lake Ballinger/McAleer Creek Watershed Forum over the life of the agreement. Narrative Due to the ongoing flooding and water quality issues with Lake Ballinger and McAleer Creek, the cities of Edmonds, Mountlake Terrace, Lynnwood, Shoreline, and Lake Forest Park, along with Snohomish County, joined together in 2008 to form the Lake Ballinger/McAleer Creek Watershed Forum (Forum). This watershed Forum was created in the public's best interest to create an area-wide body to develop a strategic action plan to address the water resource issues. An Interlocal Agreement (ILA) was signed by all parties in the summer of 2008 with the primary intent of completing a strategic action plan for the basin with funding provided by the grant received from the Department of Ecology. This ILA had an expiration date of June 30, 2010. The Strategic Action Plan was completed in the summer of 2009. On August 17, 2009, City Council approved a resolution adopting this Strategic Action Plan from the Forum. A Capital Improvement Plan was developed by Forum staff from the Strategic Action Plan and approved by the Forum in January 2010. The CIP listed thirteen separate projects with lead agencies for each project. The ILA approved by Council in 2010 replaced the previous one that expired on June 30, 2010 and has the primary task of implementing the adopted CIP plan. The ILA approved by Council in 2010 expired on December 31, 2011. This ILA replaces it and is for calendar years 2012 and 2013. This version of the ILA has been approved by the City Council of Mountlake Terrace with additional dollars for a federal lobbyist ($30,000 over the 2 year agreement term). Edmonds has chosen not to participate in funding the lobbying effort at this time. The ILA (with the lobbyist) is on the agenda for the Lake Forest Park City Council on January 26th. The Cities of Shoreline and Lynnwood have chosen not to participate in this ILA. Snohomish County is in the process of evaluating its participation in the ILA. Fiscal Impact This ILA commits the City of Edmonds to $1,600 per year for administrative cost to the Forum. This amount, however, assumes three jurisdictions would participate (Edmonds, Mountlake Terrace, and Lake Forest Park). If Snohomish County chooses to participate, the administrative costs would drop to $1,200 per year per jurisdiction. Staff has budgeted $102,000 for Lake Ballinger Associated projects in 2012 in accordance with the Stormwater Comprehensive Plan. Since this ILA extends through 2013 and Edmonds does not have a Council-approved 2013 budget, the ILA has the following language in Section 6.2:“…the financial obligations of each Member Jurisdiction to fund this Agreement after December 31, 2011 are contingent upon local legislative appropriation of necessary funds in future fiscal years…”. Attachments Packet Page 19 of 97 Exhibit 1-Interlocal Agreement Form Review Inbox Reviewed By Date Engineering Robert English 01/05/2012 12:56 PM Public Works Phil Williams 01/05/2012 02:57 PM City Clerk Sandy Chase 01/05/2012 03:07 PM Mayor Dave Earling 01/05/2012 03:52 PM Final Approval Sandy Chase 01/05/2012 04:01 PM Form Started By: Megan Cruz Started On: 01/04/2012 03:35 PM Final Approval Date: 01/05/2012 Packet Page 20 of 97 Packet Page 21 of 97 Packet Page 22 of 97 Packet Page 23 of 97 Packet Page 24 of 97 Packet Page 25 of 97 Packet Page 26 of 97 Packet Page 27 of 97 Packet Page 28 of 97 Packet Page 29 of 97 Packet Page 30 of 97 Packet Page 31 of 97 Packet Page 32 of 97 Packet Page 33 of 97 Packet Page 34 of 97 Packet Page 35 of 97 Packet Page 36 of 97 Packet Page 37 of 97 Packet Page 38 of 97 Packet Page 39 of 97 Packet Page 40 of 97 Packet Page 41 of 97 Packet Page 42 of 97 AM-4418 Item #: 3. C. City Council Committee Meetings Date: 01/10/2012 Time:15 Minutes Submitted By:Carrie Hite Department:Parks and Recreation Committee:Community/Development Services Type:Action Information Subject Title Concessions in parks, Edmonds City Code changes. Recommendation from Mayor and Staff Council approve municipal code changes to allow and simplify rules for providing concessions in parks and public right of ways. Previous Council Action On June 14th, 2011, the CSDS committee was briefed on several options to increase revenue in the parks system. They recommended this be brought to full Council, which occurred on July 19, 2011. City Council gave direction to staff to come back with code changes to allow concessions in parks, and clear up discrepancies in the mobile food vending code. Because the mobile food vending code will prompt development code changes, these codes will be brought forth after a Planning Board review. Narrative In consideration of the budget difficulties the city is facing, and the potential of enhancing the economic development in the city, the Mayor and staff are recommending code changes to ECC 4.04 Concessions agreements on public and park property. The ECC 4.04 changes allow for both food and recreational activity concessions, and allows for the Mayor and or his/her designee to grant concession agreements. In addition, this code change allows for concessions to be approved in parks as long as it is consistent with the Parks, Recreation, and Open Space plan. Concessions in the Parks would add a convenience and service for our users and could generate additional revenues for our parks, programs and facilities. We have had many inquiries in the past few years to request food, beverages, and outdoor recreation options be available at our parks and facilities. In addition, we have allowed private companies to operate in our parks for free, which pose many issues, i.e. liability, gift of public funds, etc. When introducing concessions in a park the city should consider several factors, including, but not limited to, measuring the impact upon users, impact upon park neighbors, liability, cost/benefit, and financial cost to the city ( including maintenance and programming staff time ). Currently, the Edmonds City Code allows for concessions in Parks if it is consistent with the park plan, is at the sole discretion of City Council, and must be posted at said park, and heard before a public hearing. This process is quite lengthy and cumbersome to initiate concessions in parks in general. The code changes before Council simplify the code, making it feasible to create a fair and equitable process to introduce food and recreation concessionaires into our larger parks that could accommodate concessions. It also allows the Mayor authority to enter into concession agreements in public right of ways. Concessionaire contracts can incorporate either a flat rate or a percentage revenue share so as to benefit the city for use of park and public land. Attachments ECC 4.04 changes Form Review Inbox Reviewed By Date City Clerk Sandy Chase 01/05/2012 01:57 PM Mayor Dave Earling 01/05/2012 03:06 PM Final Approval Sandy Chase 01/05/2012 03:07 PM Form Started By: Carrie Hite Started On: 12/07/2011 01:17 PM Final Approval Date: 01/05/2012 Packet Page 43 of 97 Packet Page 44 of 97 - 1 - ORDINANCE NO. _______ AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING THE PROVISIONS OF ECC 4.04 TO ALLOW FOR EXPANDED USES AND SIMPLIFIED PROCEDURES FOR CONCESSION AGREEMENTS; PROVIDING FOR SEVERABILITY; AND SETTING AN EFFECTIVE DATE. WHEREAS, local jurisdictions across the country are seeking alternative means to increase revenues; WHEREAS, there are several initiatives operated by these local jurisdictions that seek to create alternative revenue streams to help support parks and/or other government services; WHEREAS, the City of Edmonds has recognized this as an area of interest in the Parks, Recreation, and Open Space (“PROS”) plan adopted by the City Council in December 2008; and WHEREAS, the City wishes to revise its municipal code to adopt provisions to allow for expanded uses of and simplified procedures for concession agreements within the city; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Section 4.04 of the ECC Concession Agreements is hereby amended to read as follows (new language is underlined): Packet Page 45 of 97 - 2 - 4.04.010 Concession agreements. A concession agreement is a lease of public property or city right-of-way. Decisions to lease city property or public right-of-way are legislative decisions to be granted at the sole discretion of the city council. By way of illustration and not limitation, a concession agreement may provide for the lease of public property or right-of-way for private use to vend food, or beverages or merchandise, provide classes or other forms of instruction for a fee or other valuable consideration, rent bicycles, roller skates, fishing equipment or other uses which the city council, in its sole discretion, believes are consistent with the public's full use and enjoyment of park, public property or right-of-way, or enhance the general atmosphere of the community. [Ord. 3604 § 1, 2006]. 4.04.020 Concession agreements on public property. A. “Public property” shall mean any property in fee by the city of Edmonds. B. The city council hereby delegates its authority to grant Cconcession agreements may be granted at the sole discretion of the city councilto the mayor or the mayor’s designee, who may grant such agreements from time to time as ithe or she deems appropriate. The revenue from the lease of public property shall accrue to the general fund; provided, however, that concession agreements for lease of property owned, purchased or utilized by a utility or other special purpose fund shall accrue to that fund. C. Such agreements shall be approved by the city councilmayor or the mayor’s designee in a form created and approved by the city attorney. The lessee shall provide proof of insurance in a minimum of $1,000,000 per occurrence and $5,000,000 in the aggregate, or as is acceptable by WCIA, and shall fully indemnify and hold harmless the city, its officers, agents, employees and volunteers. D. A cConcession agreements relating to park property shall comply in all respects with thea park plan adopted as a part of the city's comprehensive plan. A concession agreement shall be approved only if, at the determination of the parks and recreation director, it is in line with the goals and objectives of that plan, and is appropriate for the particular park(s) in which the concession is to be located. No concession agreement shall be approved for park property until approved in the applicable portion of the comprehensive plan, parks element. Packet Page 46 of 97 - 3 - E. Concession agreements relating to park property shall be approved only after a public hearing. Notice of the public hearing shall be posted at least at three locations at the perimeter of the park property and at the site sought for lease by a concessionaire. [Ord. 3604 § 1, 2006]. Section 2. Severability Section 3. . If any section, sentence, clause or phrase of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. Effective Date APPROVED: . 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. MAYOR ATTEST/AUTHENTICATED: CITY CLERK, SANDRA S. CHASE APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: BY JEFFREY B. TARADAY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: Packet Page 47 of 97 - 4 - EFFECTIVE DATE: ORDINANCE NO. Packet Page 48 of 97 - 5 - SUMMARY OF ORDINANCE NO. __________ of the City of Edmonds, Washington On the ____ day of ___________, 20__, the City Council of the City of Edmonds, passed Ordinance No. _____________. A summary of the content of said ordinance, consisting of the title, provides as follows: ORDINANCE NO. _______ AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING THE PROVISIONS OF ECC 4.04 TO ALLOW FOR EXPANDED USES AND SIMPLIFIED PROCEDURES FOR CONCESSION AGREEMENTS; PROVIDING FOR SEVERABILITY; AND SETTING AN EFFECTIVE DATE. The full text of this Ordinance will be mailed upon request. DATED this _____ day of ________________, 20__. CITY CLERK, SANDRA S. CHASE Packet Page 49 of 97 AM-4484 Item #: 3. D. City Council Committee Meetings Date: 01/10/2012 Time:20 Minutes Submitted By:Michael Clugston Department:Planning Committee:Community/Development Services Type:Information Information Subject Title Regulation of bed and breakfast establishments. Recommendation from Mayor and Staff Forward the issue to the Planning Board for study. Previous Council Action The Council briefly looked at this issue in 2009 (see Exhibit 1) but at that point the discussion involved nuisance regulation and the short-term rental and use of entire houses rather than the bed and breakfast concept specifically. Narrative A question recently came from a resident – can you have a bed and breakfast in a single family residential zone? After researching it, the current answer is – unclear. The zoning code seems to allow it (although the use is not specifically called ‘bed and breakfast’) but the requirement for a business license seems to stand in the way of the use. As we seek to update the code and expand economic development, is there an interest now in clarifying how bed and breakfasts are regulated in Edmonds in order to provide additional tourist lodging opportunities? Many other nearby municipalities including Mercer Island, Bellingham and Bainbridge Island allow B&Bs in single family residential zones with a conditional use permit. They have established specific criteria to limit the number of rooms/boarders, the duration of stay, signage, off-street parking and the like to ensure the character of the surrounding single family residence and neighborhood is maintained. Currently, rental of rooms is a permitted secondary use in RS zones according to ECDC 16.20.010.B.3 (“renting of rooms without separate kitchen to one or more persons”). A group of people up to that which defines a “family” as in ECDC 21.30.010.A is currently possible but the length of stay is not regulated. Presumably, a homeowner could operate something like a bed and breakfast and have several overnight guests but the arrangement could not be called a ‘bed and breakfast’ due to conflict with the business license code. The term ‘bed and breakfast’ is mentioned twice only in the Edmonds City Code (ECC) and not at all in the Edmonds Community Development Code (ECDC). In the Business License chapter, the term is used under ‘Registration of transient accommodations’ which was updated last in 1986 (ECC 4.72.023): "It shall be unlawful for any person, partnership or corporation to operate a bed and breakfast establishment or other form of transient accommodation without first registering such accommodation with the city’s fire marshal. “Transient accommodation” shall mean any hotel, motel, condominium, resort or other facility regardless of size which offers rental of one or more lodging units on a daily or weekly basis. It shall not include rooms let on month-to-month leases or longer tenancies. Application for a business license shall satisfy the requirements of this section; any transient accommodation exempt from the provisions of this chapter shall register in writing with the fire marshal on a form designated for use by the fire marshal. Violations of this section shall be punishable by a fine of $20.00; each and every day of violation shall constitute a separate offense." The term ‘rental unit’ is defined in the Business License chapter (ECC 4.72.010.C): "The term “rental unit” shall mean a separate room or apartment leased for human occupancy and contained within a single structure, and shall include the operations of rooming houses, boarders within private residences and the operation of bed and breakfast establishments [which otherwise meet the criteria of the exception created in the subparagraph above (4.72.010.B) which states “…The term “business” includes all services and activities engaged in with the object of pecuniary gain, benefit or advantage to the person, or to any other person or class, directly or indirectly, whether part-time or full-time…except…persons leasing one rental unit or one private residence.)]." Packet Page 50 of 97 A B&B would be permitted in some business or commercial zones since they are similar to ‘transient accommodations’ like ‘hotel and motel’ (yes in BD, BC and CG zones; no in BN, BP). ‘Boarding and rooming houses’ are permitted uses in the RM zones but the code is unclear whether that includes short term rental like ‘transient accommodations’ or just month-to-month and longer term. Hotels and motels or similar ‘transient accommodations’ like B&Bs are not specifically allowed in the single family residential zones. Attachments May 19, 2009 Council minute excerpt Form Review Inbox Reviewed By Date Planning Department Rob Chave 01/05/2012 06:10 PM City Clerk Sandy Chase 01/06/2012 08:18 AM Mayor Dave Earling 01/06/2012 08:54 AM Final Approval Sandy Chase 01/06/2012 08:54 AM Form Started By: Michael Clugston Started On: 01/05/2012 03:15 PM Final Approval Date: 01/06/2012 Packet Page 51 of 97 Edmonds City Council Approved Minutes May 19, 2009 Page 4 5. PUBLIC HEARING ON THE PLANNING BOARD RECOMMENDATION TO DECLINE TO AMEND THE EDMONDS COMMUNITY DEVELOPMENT CODE TO FURTHER REGULATE THE RENTAL OF SINGLE FAMILY DWELLINGS. Planning Manager Rob Chave recalled the Council referred this issue to the Planning Board who held a public hearing after adopting an interim ordinance placing a 7 day restriction on short term rentals in single family neighborhoods which expired on May 14, 2009. The decision for the Council was whether to adopt a permanent change to the code. The Planning Board considered regulating short term rentals with a 30 day limitation because the building code differentiates between hotels as typically renting less than 30 days and because some may view short term rental as a commercial operation. The Planning Board recognized this did not appear to be a citywide issue and that the only enforcement action had been related to the property on Cyrus Place. Letters and affidavits were submitted at the Planning Board’s public hearing stating the property on Sunset had been doing short term rental for quite some time without any impact on the neighborhood. The 30 day option considered that record and suggested clarifying the code regarding short term rental versus a long term use. Finding this was not a citywide problem, that it was isolated to one instance and that most of the problems had been resolved using existing enforcement mechanisms related to noise, parking, etc., the Planning Board concluded there was no reason to amend the code and forwarded that recommendation to the Council. Mr. Chave recognized the difficulty for the Council to balance the interest of the broad community versus a specific instance that may be resolvable using existing mechanisms in the code. He noted when presented with a problem, the response may be to amend the code to address the problem; the difficulty with that was the risk of unintended consequences over time. The Planning Board decided if the existing rules generally seemed to work and could effectively address situations that arose, there was no reason to change the code. He noted there was a great deal of testimony at the Planning Board public hearing both for and against amending the code. Mayor Pro Tem Wilson clarified the one instance Mr. Chave referred to was on Cyrus Place. Mr. Chave agreed. Councilmember Plunkett inquired about the process if the Council determined they wanted to adopt an ordinance after public testimony and deliberation, and whether the ordinance would need to be referred to the Planning Board again. City Attorney Scott Snyder responded that assuming the Council direction was within the range of alternatives considered by the Planning Board, staff would prepare a final ordinance for public hearing before the Council. The minimum requirement would be another public hearing if there were substantive changes. Mr. Chave advised the Planning Board considered both 7 and 30 day alternatives. Mr. Snyder requested an opportunity to discuss a decision-tree with the Council following the conclusion of the public hearing. He suggested if the Council decided to regulate short term rental and set a time limit, there were several other important decisions to be made regarding how to treat nonconforming uses and whether they should be abated. Councilmember Bernheim recalled Development Services Director Duane Bowman’s assurance when the Council discussed this on December 16 that the Planning Board would consider whether short term rentals should be allowed as an economic development driver. He requested Mr. Chave summarize the issues of taxation of short term rentals, licensing, standards, etc. Mr. Chave responded the Planning Board did not have detailed discussions regarding economic development. Their approach was from the standpoint of regulation, nuisance, etc. Packet Page 52 of 97 Edmonds City Council Approved Minutes May 19, 2009 Page 5 Councilmember Bernheim asked if long term leases in residential areas or short term rentals had any licensing requirements and paid taxes based on income and if there were signage requirements for short term rentals. Mr. Chave answered signage was addressed under home occupation review. He explained the rental of rooms was an outright permitted use in residential zones. One line of logic would be if rental of rooms was an allowed use, a home occupation permit was not necessarily required. Residents renting rooms have traditionally been advised to obtain a business license but he was uncertain whether most did. A resident who was renting rooms and registered as a business would be required to report income, pay taxes, etc. Mr. Snyder advised there was no specific signage permitted in residential neighborhoods. Mr. Chave advised a home occupation was allowed to identify the home but not advertise the business. Mr. Snyder advised longer term rentals were subject to state leasehold excise tax; short term daily rentals that collect sales tax were subject to hotel/motel tax. Councilmember Plunkett referred to a letter the Council received from Richard Gifford, an attorney representing Mr. Wilkinson that questioned citizens’ motivations, cited possible discrimination and implied that if the City regulated short term rental, it would be in danger of civil rights violations. He asked if Mr. Snyder anticipated civil rights issues would arise if the Council adopted a permanent ordinance. Mr. Snyder suggested he address that issue following the public hearing, noting there were potentially 4-5 legal challenges. The Council must make clear legislative findings regarding the problem, how to address it, whether nonconforming uses should be allowed to continue or be abated and if abated, how to abate them. Councilmember Bernheim asked whether any of the potential legal challenges needed to be addressed if the Council took no action. Mr. Snyder answered if the Council made a decision not to regulate short term rentals, there did not need to be any further discussion regarding those potential legal challenges. Mayor Pro Tem Wilson opened the public participation portion of the public hearing, noting the Council had received additional correspondence from Bob & Vera McGee, Scottsdale, Arizona, who stay in the Edmonds area each year; Don & Carol Ricker, Edmonds, who support a 30 day minimum; Jim Wilkinson,Edmonds, regarding unintended consequences; Wendy Chaffee, Edmonds, who was opposed to short term rentals; and Jolaine Murrell who said there should be more places like the Sunset Avenue property available for short term rental. Sally Wassall, Edmonds, anticipated the Planning Board failed to recommend changes to the code because they had not had first hand experience with noise, traffic and crime in their neighborhoods. She urged the Council to pass a 30-day minimum rental period in single family R6 residential areas. She relayed conversations with neighbors of the property on Cyrus Place regarding problems they experienced with the daily and weekly rentals. She relayed problems they encountered in Surry, BC where there were no ordinances to enforce situations that arose and the only solution was to call the police. Jim Wassall, Edmonds, recommended rentals in single family neighborhoods be a minimum of 30 days. He asserted if the Council accepted the Planning Board’s recommendation, they would be ignoring the wishes of the majority of Edmonds residents as everyone he has talked to felt 30 days was a reasonable restriction on rentals in single family neighborhoods. He recalled in November 2008 the Council passed interim zoning Ordinance 3702 that established a 7 day minimum time limit; that ordinance has since expired and there is now no minimum time limit in rentals in single family residents. He expressed concern that the house on Sunset could legally rent their property on an hourly basis. He recalled Mr. Bowman’s recommendation that the City establish a 30 day minimum rental requirement for single family residential rentals and authorize a one year amortization from the date of passage for all existing short term rentals. He urged the Council at a minimum to extend Ordinance 3702 for another 6 months. Packet Page 53 of 97 Edmonds City Council Approved Minutes May 19, 2009 Page 6 Marilyn Lindberg, Edmonds, commented she did not purchase her home in a single family neighborhood with the knowledge that zoning was not as it appeared or that the triplex next door would become a hotel/motel. She recommended distinguishing between single family residential and commercial zoning. She urged the Council to consider the type of city they wanted and not allow short term rentals to become a problem. Without guidelines, the only recourse for violations of noise, parking and drug problems would be to call the police. Bob Krump, Edmonds, commented his family made Edmonds their home due to the quality of life it offered including getting to know their neighborhoods and local businesses. He recalled problems he experienced living next door to a single family home used for two rental units. When a neighborhood became a rental situation, the residents lost the ability to know their neighbors and the neighborhood crime watch program suffered. He referred to a neighboring property that recently requested a permit for an accessory dwelling unit (ADU), pointing out the possibility of the property owner renting both his residence and the ADU. With the budget issues facing the City, he questioned whether the City had the staff to address issues arising from short term rentals. He recommended the Council adopt a 30-day minimum for rentals in single family neighborhoods. Jan Conner, Edmonds, voiced her opposition to short term rentals of less than 30 days in residential neighborhoods. As the Manager of the Best Western Edmonds Harbor Inn, she was concerned individuals renting their residences were not paying taxes, not obtaining business licenses or transient accommodation licenses and not paying hotel/motel taxes. She was doubtful that short term rentals of residences would be an economic development driver. By allowing short term rentals in residential neighborhoods, the Council would put all single family residences in competition with the Harbor Inn. Although she welcomed fair competition, she pointed out the Inn must comply with building code regulations, taxes, licensing, etc. which a single family residence may not. She summarized the Harbor Inn generated most of the lodging tax collected by the City as well as made considerable expenditures to promote the City. Pam Hoelzle, Edmonds, recalled hearing in a local business about nuisances on Sunset Avenue and how dangerous it was to live there. She commented in the three years she has lived on Sunset she has never seen any nuisances. She questioned the Council’s stand on personal private property rights, how regulating short term rental of the house on Sunset would affect residents’ ability to rent individual rooms in their houses, and whether there had been any nuisances with short term rentals on Sunset. She concluded it appeared this was a neighborhood squabble that had gotten out of control. Peter Wilkenson, Edmonds, a resident living next door to Jim Wilkinson, commented during the 12 years he has lived there, he has not encountered any problems with the short term rental of the Wilkinson property. He did not support regulating a problem that did not exist and recommended the Council follow the Planning Board’s recommendation. Michelle Hoverter, representing the Pinyerd Family Trust, commented this was not a neighborhood squabble and the emotional and threatening language that has occurred was unfortunate. The issue was what was allowed in a single family zone and the fact that vacation rentals in single family zones violated the tenor of the neighborhood as well as the zoning. She was disappointed the Planning Board did not recommend strengthening and clarifying the zoning code for single family residences and anticipated they may have been afraid to because of the threatening and emotional language they heard. She noted there were sufficient hotels in Edmonds to accommodate visitors without opening single family areas to short term vacation rentals. She pointed out the triplex on Sunset Avenue was grandfathered into the single family zone and its historic use before the recent short term rentals was as a month-to-month or longer single family residential rental, a use that should be preserved. Packet Page 54 of 97 Edmonds City Council Approved Minutes May 19, 2009 Page 7 Steve Thole, Edmonds, spoke in favor of a 30-day minimum rental period, finding a 7-day minimum to be a commercial use of a property. He pointed out the potential for all homes in a single family to rent their property for 7-day periods, essentially establishing a hotel. He disagreed with the Planning Board’s determination that the situation was not broken so it did not need to be fixed. He urged the Council to proactively address what constituted a commercial versus a residential use of a property. He applauded Mr. Wilkinson for his efforts to screen his tenants, noting he had only been renting for three years, a relatively short period of time. As a landlord himself, he also carefully screened renters but acknowledged there eventually were problems. He anticipated the probability of problems was greater with short term rentals than long term rentals. Al Rutledge, Edmonds, commented he has attended several Planning Board meetings. He pointed out many affected citizens were not present tonight for the public hearing on an issue that was important to the future of Edmonds. Rowena Miller, Edmonds, pointed out there were no guarantees regarding neighbors whether they owned, leased or rented. The only problem the City encountered with a short term rental had been addressed by the existing ordinances that control noise, traffic, parking, commerce, junk, etc. She recalled 42 years ago her family including 5 children stayed with a friend for 3 weekends which led to their purchasing a home in Edmonds. She pointed out the City’s vision to attract visitors to support the local economy. She urged the Council to support the Planning Board’s recommendations regarding short term rentals in residential zones, commenting the Planning Board conducted a thorough study including several public hearings and their reasons for not amending the code were valid. She urged the Council to keep Edmonds a welcoming place to live and visit. Hearing no further comment, Mayor Pro Tem Wilson closed the public participation portion of the public hearing. Mr. Snyder presented a decision tree explaining there were different tests at different stages of the Council’s decision-making process. The decision to use police power to regulate via zoning was typically given a great deal of deference by the courts. Challenges were substantive due process and the courts tend to defer to legislative findings. The first question was what’s the problem and does it need to be regulated. In the course of their discussions, the Council should cite the record for information for the legislative findings that identify the problem. And although there had been numerous concerns and issues raised by the public regarding potential impacts, he urged the Council to focus on actual impacts cited in the testimony. With regard to violation of the State’s discrimination provisions, he commented gender preference, race, religion, creed or handicap of the owner of property had absolutely nothing to do with any decision the Council made. And to the extent that it had crept into the record was as much by the property owner and attorney as the neighbors. He anticipated it would play no role in the Council’s discussions. The defense to a claim of discrimination in the application of a zoning ordinance or to substantive due process was similar – is there a real problem and does it need to be addressed. In discrimination law it was finding a business necessity for the action the Council was taking and in substantive due process it was whether there was a problem and has it been effectively addressed. He pointed out lawfully established nonconforming uses would remain. If the Council chose not to regulate, nothing further was required. If the Council chose to regulate, Mr. Wilkinson’s property and potentially other properties were lawful nonconforming uses and the next step would be to determine whether nonconforming uses needed to be abated and if so, how. Packet Page 55 of 97 Edmonds City Council Approved Minutes May 19, 2009 Page 8 COUNCILMEMBER BERNHEIM MOVED, SECONDED BY COUNCILMEMBER PETERSON, TO ADOPT THE PLANNING BOARD’S RECOMMENDATION AND NOT REGULATE RENTALS IN RESIDENTIAL AREAS. Councilmember Bernheim commented the current practices did not merit adopting an amendment and the current regulations were adequate. Council President Pro Tem Wambolt referred to the comments by the Manager of the Best Western, that this perhaps could provide unfair competition. Mr. Snyder responded that was not a legal question; it was for the Council’s discretion. A question for the Council was whether the playing field should be leveled by tightening up the City’s hotel/motel tax provisions to reach other short term renters. Mr. Chave commented it would be worthwhile to review how business licenses and home occupations interact with regard to State taxation. Council President Pro Tem Wambolt advised he would support the motion and although he understood the residents concerns, it was not a big problem and if the Council chose not to amend the current regulations, they could be amended in the future if necessary. He pointed out prior to the interim ordinance, there had only been the one problem. Councilmember Plunkett indicated he would not support the motion, finding the legislative record replete with information from the Police Department and residents regarding issues with short term rentals, particularly the home near Talbot Road. Further, he pointed out no one purchased a home expecting there to be short term rentals in their neighborhood. He found a 30-day limit a reasonable regulation and supported the residential nature of Edmonds’ neighborhoods. Councilmember Orvis indicated he would not support the motion and preferred a 30-day limitation on short term rentals. He viewed overnight rentals in a residential neighborhood as a commercial use, a use inappropriate for a residential neighborhood. He referred to the comment that the existing codes were adequate, pointing out if they were adequate, why had an interim ordinance been necessary. He pointed out code enforcement was a very slow process and it was virtually impossible to address overnight rentals. He concluded people living in a neighborhood for a longer period of time became accountable to their neighbors. That was the reason the accessory dwelling unit regulations required the property owner to occupy the primary residence so that the property owner would be aware of any disruptive activity. MOTION CARRIED (5-2), COUNCILMEMBERS PLUNKETT AND ORVIS VOTING NO. 6. AUDIENCE COMMENTS Carla Elder, Edmonds, explained their home was annexed into Edmonds in October 1995. Three years prior to annexation, her husband and she obtained a building permit in Snohomish County to construct an addition to their home. Under that permit, the foundation was installed and the addition was framed, sided and roofed. Her husband, who did all the work himself, became ill and passed away in December 2006 before the project was finished. When she visited the Edmonds Planning Department to obtain permits to complete the 600 square foot addition, she was told she did not meet the Edmonds setback requirement of 7½ feet; the rear setback in Snohomish County is 5 feet, a requirement she met at the time the permit was issued in Snohomish County and the foundation installed. She summarized the foundation was legally installed, inspected and approved. She now wanted to complete the interior of the addition which includes wiring, plumbing, insulation and drywall. The Planning Department stated she could apply for a variance at a cost of $1500, indicating there was no guarantee the variance would be granted. She questioned the need for a variance when her structure had been legally constructed. Mayor Pro Tem Wilson responded if Mayor Haakenson were present, he would invite her to call him tomorrow. In Mayor Haakenson’s absence and to avoid the Council’s prejudicing themselves in the decision-making process, Mayor Pro Tem Wilson suggested she speak with Community Services Director Stephen Clifton. Packet Page 56 of 97 AM-4477 Item #: 4. A. City Council Committee Meetings Date: 01/10/2012 Time:15 Minutes Submitted For:Rob English Submitted By:Robert English Department:Engineering Committee:Finance Type:Action Information Subject Title Purchasing Policy Update Recommendation from Mayor and Staff Forward this item to the consent agenda for approval at the January 17, 2012 Council meeting. Previous Council Action On September 13, 2011, the CSDS and Finance Committees, in a joint meeting, reviewed and discussed a new change order policy and recommended the item be discussed with the full Council. On September 13, 2011, the CSDS Committee reviewed and discussed proposed ordinances setting requirements for responsible bidders and goals for apprenticehip participation on City Construction Contracts. On September 20, 2011, Council reviewed and discussed the proposed change order policy and recommended it be revised and discussed further at the October 4, 2011 Council meeting. On September 20, 2011, Council reviewed and approved Ordinance No. 3854 regarding apprenticeship utilization and Ordinance No. 3855 regarding responsible bidder criteria. On October 4, 2011, Council approved a change order policy for city construction projects. Narrative Attached is an update to the City's Purchasing Policy that includes new sections related to change orders on City construction projects (page 13), apprenticeship utilization program (page 6) and responsible bidder criteria (page 8). All three items were reviewed and approved by Council in September and October and are now being incorporated into the City's Purchasing Policy. The update also proposes the following revisions to the Small Works Roster section: 1. RCW 39.04.155, regarding small works roster contract procedures, was amended in 2009 and increased the threshold for using small works roster contracts from $200,000 to $300,000 (page 11). Also, the cost of projects for which the City must notify all of the contractors on its small works roster that bids for work are being sought has been increased from $100,000 to $150,000 (page 12). 2. The threshold for award of small works contracts was raised to $100,000 to be consistent with the Mayor's purchasing authority for the procurement of products, professional services and public works projects (page 13). Attachments Exhibit 1 - Revised Purchasing Policy Form Review Inbox Reviewed By Date Engineering Robert English 01/04/2012 05:34 PM Public Works Phil Williams 01/05/2012 12:08 PM Finance Shawn Hunstock 01/05/2012 12:25 PM City Clerk Sandy Chase 01/05/2012 01:57 PM Mayor Dave Earling 01/05/2012 03:03 PM Packet Page 57 of 97 Mayor Dave Earling 01/05/2012 03:03 PM Final Approval Sandy Chase 01/05/2012 03:07 PM Form Started By: Robert English Started On: 01/04/2012 04:58 PM Final Approval Date: 01/05/2012 Packet Page 58 of 97 City of Edmonds Purchasing Policies and Procedures January 201209 Style Definition: Heading 1 Packet Page 59 of 97 Table of Contents Page Policy ............................................................................................................................................... 1 Purpose ............................................................................................................................................ 1 Authority .......................................................................................................................................... 1 Parameters ....................................................................................................................................... 1 Procurement of Products ................................................................................................................ 2 Procurement of Professional Services ........................................................................................... 2 A. Professional, Technical, and Other ....................................................................................... 2 B. Architectural, Engineering, and Land Surveyor Services (A/E) ............................................... 3 Procurement of Public Works ......................................................................................................... 3 Bidding Requirements .................................................................................................................... 4 Bid Procedures ............................................................................................................................. 4 Apprentice Requirements.............................................................................................................. 6 Responsible Bidder Criteria .......................................................................................................... 8 Small Works Roster ..................................................................................................................... 511 Limited Pubic Works Process .................................................................................................. 712 Change Orders on Public Works Construction Contracts ........................................................... 13 Reimbursement of Expenses ...................................................................................................... 813 Other Issues ................................................................................................................................ 813 Interlocal Agreements ............................................................................................................. 813 Sole Source Procurement ....................................................................................................... 814 Special Market Conditions ....................................................................................................... 814 Emergencies ........................................................................................................................... 914 Record Retention Requirements ............................................................................................. 914 State Minimum Bidding Requirements ..................................................................................... 915 Conflicts of Interest ................................................................................................................. 915 Forms and Templates ............................................................................................................. 915 Recyclables ............................................................................................................................ 915 Surplus Items .......................................................................................................................... 915 Store Issued Charge Cards ..................................................................................................... 915 Purchase Cards ...................................................................................................................... 915 Quick Checks ........................................................................................................................ 1015 Early Release ....................................................................................................................... 1015 Petty Cash ............................................................................................................................ 1015 Budget Adjustments .............................................................................................................. 1016 Exclusive Contract Agreements ............................................................................................. 1016 Expenditures of Direct or Indirect Federal Financial Assistance ............................................. 1016 Finance Committee ............................................................................................................... 1016 Packet Page 60 of 97 City of Edmonds Purchasing Policy January 201209 Page 1 of 10 16 Policy The City of Edmonds will acquire goods and services in a manner that results in the most efficient delivery of the same considering cost and value received. To avoid conflict of interest, procurement will be impartial. Procurement of goods and services will provide the City with the best quality for the best value and will be for the benefit of the public. Employees are prohibited from making purchases for personal use and charging any City vendor account. Purchases will be made within budget limits and to meet goals and objectives approved in the City’s budget. Potential purchases that are not within budget limits will be pre-approved through a budget amendment process. All City purchases will ultimately be approved by the City Council through the voucher approval process. Purpose This administrative manual establishes City responsibilities and policies, procedures, and practices to follow to purchase equipment, materials, and services. All employees must follow established policies and procedures. The City’s purchasing policies and procedures, however, are intended solely for the benefit of the City. Nothing therein shall be interpreted to create any specially benefited or protected class of persons, or any private cause of action against the City. Adherence to policies and procedures will ensure that public purchases and contracts are open, fair, and at the least cost to the public. Policies and procedures are divided into six major areas: 1) Procurement of Products, 2) Procurement of Professional Services, 3) Procurement of Public Works, 4) Bidding Requirements, 5) Reimbursement of Expenses, and 6) Other Issues. Authority A department director (or designee), acting within his/her department budget, is authorized to provide for supplies and services purchases. To ensure the City’s fiscal responsibility, purchases are coordinated through the Finance Department. The City’s procurement procedures are based on Revised Code of Washington minimum standards, Edmonds City Council adopted resolutions and ordinances, rules and guidelines from the State Auditor’s Office, and recommendations from Municipal Research Services Center. Parameters Dollar-value ranges indicated pertain to each purchase (including tax, freight, handling and set up costs, if applicable). Purchases cannot be broken into multiple purchases to avoid compliance with State statutes and City policies. Procurement of goods or services specifically identified and approved by Council during the budget process are excluded from pre-approval requirements. Any contract that extends beyond the approved budget cycle or which has continuing provisions (indemnities) which impose obligations beyond the budget cycle must go to Council for authorization; provided that the Mayor (or designees) shall be authorized to execute contracts with indemnity provisions that survive expiration or termination of the contracts if the following conditions are met: (1) City Attorney determines that the indemnity provision is in a standard form that assigns risks in a manner consistent with the costs and purposes of the contract; and (2) the dollar value of the contract is less than $100,000. Packet Page 61 of 97 City of Edmonds Purchasing Policy January 201209 Page 2 of 10 16 Procurement of Products Purchasing decisions costing $50,000 or less must be approved by the department director (or designee). Purchases costing between $10,000 and $25,000 require at least three telephone quotes from vendors (unless the items are from a sole source vendor), and completion of the vendor quote form. Purchasing decisions costing more than $25,000 but less than $50,000 must be approved by the department director (or designees). Purchases require written quotations from, if possible, at least three vendors (unless the items are from a sole source vendor). Purchasing decisions costing more than $50,000 but less than $100,000 must be approved by the department director and the Mayor (or their designees). Purchases require written quotations from, if possible, at least three vendors (unless the items are from a sole source vendor). Purchases in excess of $100,000 must be bid competitively (unless the items are from a sole source vendor). See Bidding Requirements below. The City Council must authorize the call for bids for a purchase estimated at $100,000 or more, as well as award the contract. When soliciting quotes, the City will not inform a vendor of other vendors’ quotes. All quotes/bids must be awarded to the lowest responsible bidder. Procurement of Professional Services A. Professional, Technical, and Other Services 1. Professional, Technical and Other services include disciplines not specifically related to A/E such as attorneys, computer programmers, financial analysts, bond counsels, artists, planners, real estate appraisers, landscapers, etc. 2. Purchase of professional services requires completion of a City professional service contract that describes services to be performed and purchase price. 3. The department director (or designee) must approve purchases of professional services costing $50,000 or less, and provided funds have been budgeted is authorized to sign the contract. 4. The department director and the Mayor (or their designees) must approve purchases of professional services costing more than $50,000 but less than $100,000. The Mayor is authorized to sign the contract provided funds have been budgeted. 5. Professional services with an estimated consultant fee of $100,000 or greater, require a focused public solicitation to ensure the consultant has the necessary expertise. A summary of the public solicitation must be put on the City Council agenda for approval prior to advertisement. The City Council must approve Professional Service contracts costing more than $100,000, and authorize the Mayor to sign the contract. 6. Expertise, experience, including prior experience with the City, timeframe for completing projects, and the value of a negotiated agreement will be considered when choosing a consultant/firm to perform professional services. Packet Page 62 of 97 City of Edmonds Purchasing Policy January 201209 Page 3 of 10 16 B. Architectural, Engineering and Land Surveyor Services (A/E) 1. Procurement of A/E services will be in accordance with Chapter 39.80 RCW. The statute requires advance notice of the need for professional services (RCW 39.80.030), evaluation of firms’ qualifications and performance (RCW 39.80.040), and negotiation with firms in accordance with adjudged qualifications (RCW 39.80.050). A/E purchases will be coordinated through the Public Works Department to ensure compliance with State statutes. 2. The department director (or designee) are designated authority to approve advertising Requests for Qualifications (RFQ’s) for A/E services when the estimated consultant contract fee is $50,000 or less and to approve proceeding with procurement of A/E services using the A/E Consultant Roster, provided funds have been budgeted by Council. 3. The department director and the Mayor (or their designees) must approve consultant contracts when the estimated consultant contract fee is greater than $50,000, but less than $100,000, provided funds have been budgeted.. The Mayor is authorized to sign the contract. 4. Per Resolution 1155 the City utilizes the A/E consultant roster maintained by Municipal Research and Services Center (MRSC). 5. Selection of an A/E consultant from the consultant roster may be made if the estimated consultant fee is $100,000 or less. 6. All projects with an estimated A/E consultant fee of $100,000 or greater, and projects that are sufficiently complex/unique will require a focused public solicitation advertised as a Request for Qualification (RFQ’s) to ensure the A/E consultant has the necessary expertise. A summary of the RFQ and project details must be put on the City Council agenda for approval prior to advertising the RFQ. The City Council must approve A/E Professional Service contracts costing more than $100,000, and authorize the Mayor to sign the contract. 7. A selection panel, with a minimum of three employees, shall be used to select an A/E consultant when the estimated consultant fee exceeds $100,000. A selection panel is optional when the A/E consultant fee is estimated to be less than $100,000. 8. Purchase of A/E services require completion of a City professional service contract that describes services to be performed and purchase price. Procurement of Public Works RCW 39.04.010 defines public works to include all work, construction, alteration, repair or improvement other than ordinary maintenance, executed at the cost of the City. (Most public works projects are multiple craft, defined as more than one type of work being executed.) 1. City employees may be used to perform public works projects until the accumulated costs of public works projects performed by them during a budget cycle meets ten percent of the City’s public works construction budget; PROVIDED that, for any public works project costing more than fifty thousand dollars, if multiple crafts or trades are involved, or thirty thousand dollars, if only a single craft or trade is involved, must be bid competitively. See Bidding Requirements below. 2. Starting in January 1, 2010, the bid limits above will be sixty five thousand dollars and forty thousand dollars, respectively. 3. Once the accumulated cost of public works project performed by City employees during a budget cycle meets or exceeds ten percent of the City’s public works construction budget, all other public works projects must be bid competitively, regardless of estimated costs. See Bidding Requirement below. Packet Page 63 of 97 City of Edmonds Purchasing Policy January 201209 Page 4 of 10 16 4. Public works projects are governed by prevailing wage requirements, regardless of contract amount. 5. Except as noted below for Small Works Roster or limited public works, a bid bond of five percent will be required on all public works bids, and a performance bond (or retainage for public works contracts of thirty five thousand dollars or less) will also be required pursuant to Chapter 39.08 RCW on public works contracts. Bidding Requirements The competitive bid process is generally (although not exclusively) used for public works projects. Dollar-value ranges indicated pertain to each purchase (including tax, freight, handling and set up costs, if applicable). Purchases cannot be broken into multiple purchases to avoid compliance with State statutes or City policies and procedures. Negotiations on bids are not permitted. Bid Procedures 1. Authorization to call for bids will be approved by the department director (or designee) for public works projects estimated at less than $50,000; and by the department director and the Mayor (or their designees) for a public works project costing more than $50,000 but less than $100,000. The City Council must authorize the call for bids for a project estimated at $100,000 or more. Authorization for Bids 2. After proper authorization, the requesting department director (or designee) will publish the advertisement for Bids reasonably in advance of the bid submittal deadline in the official newspaper or a newspaper of general circulation most likely to bring responsive bids. Publication of Notice 3. Notice (or advertisement) for bids should contain definite specifications and procedures for bidders to use to estimate their bids. A bid notice for public work should include: Notice Contents - project title, - nature and scope of work or goods sought, - where contract documents (plans and specifications) can be reviewed or obtained, - cost, if any, to obtain a set of contract documents, - place, date, and time that bids are due, - place, date, and time that bids will be opened (if different from above), - materials and equipment to be furnished by the City, if any, - statement that a bid bond must accompany the bid for public works projects, and a - statement that the City retains the right to reject any and all bids and to waive minor irregularities in the bidding process. In addition, the City may provide evaluation criteria; minimum qualification expectations; date, time, and location of pre-bid conference (if applicable); and name, address, and telephone number of the project contact to assist bidders in preparing responsive submittals. Packet Page 64 of 97 City of Edmonds Purchasing Policy January 201209 Page 5 of 10 16 4. Bids are submitted to the City Clerk’s Office, where they are time and date stamped and processed. No bids will be opened prior to the predetermined date and time. Bid Opening 5. The requesting department director will report on all bids received with a recommendation on the lowest responsible bidder, if any, or to reject all bids. Report on Bids 6. Unless all bids are rejected, a winning bid must be awarded to the lowest responsible bidder by the department director (or designee) for a public works project costing less than $50,000; and by the department director and the Mayor (or their designees) for a public works project costing more than $50,000 but less than $100,000. The City Council must award bids which exceed $100,000. The City may chose to reject all bids for any reason. Bid Award The following shall apply to bid solicitations: • Selection of a winning offer is based primarily on low bid, after factoring whenever possible such costs as maintenance and operations over the expected period of use. Consideration, however, may also be given for the following: • Ability, capacity, expertise and skill of the bidder to perform the contract. • Character, integrity, reputation, judgment, experience, and efficiency of bidder. • Ability to perform within time specified. • Quality of performance of previous contract(s). • Other information having a bearing on the decision to award the contract. • Minimum qualifications must be provided to ensure respondents are reasonably qualified. Minimum qualification requirement should be compared against the marketplace to ensure they are not overly restrictive. • To ensure consistency and fair process, the City will use standard forms, documents, contracts, and terms and conditions, when practical. The Public Works & Finance Departments will maintain templates for bid-related documents for use by departments. The City may use an evaluation selection committee to promote an open and proper selection. The requesting department director will appoint committee members to act in an advisory capacity. • When practical, the City will conduct a pre-bid conference to allow a thorough discussion of the City’s expectations, intent, scope, specifications, and terms. Interested companies should be encouraged to attend. • Every bidder for a public works contract that is expected to cost one million dollars or more must submit as part of the bid, or within one hour after the published bid submittal time, the names of the subcontractors with whom the bidder, if awarded the contract, will subcontract for performance of the work of: HVAC (heating, ventilation, and air conditioning); plumbing as described in chapter 18.106 RCW; and electrical as described in chapter 19.28 RCW, or to name itself for the work. The bidder shall not list more than one subcontractor for each category of work identified, unless subcontractors vary with bid alternates, in which case the prime contract bidder must indicate which subcontractor will be used for which alternate. Failure of bidder to submit as part of the bid the names of such subcontractors or to name itself to perform such work or the naming of two or more subcontractors to perform the same work shall render the bid nonresponsive and, therefore, void. Packet Page 65 of 97 City of Edmonds Purchasing Policy January 201209 Page 6 of 10 16 • If no responsive bid is received on the first call the City may readvertise and make a second call, or without any further call, it may enter into a negotiated contract, purchase the supplies, material or equipment or perform the work or improvement using its own employees. Apprentice Requirements A. Definitions. 1. “Apprentice” means an apprentice enrolled in a state-approved apprenticeship training program. 2. “Contractor” means a person, corporation, partnership, limited liability company, or joint venture entering into a contract with the City to construct a public work. 3. “Labor hours” refers to the total number of hours worked by workers receiving an hourly wage who are directly employed on the site of the public work and who are subject to state or federal prevailing wage requirements. “Labor hours” shall also include hours worked by workers employed by subcontractors on the site of the public work, and shall include additional hours worked as a result of a contract or project adjustment or pursuant to an agreed-upon change order. 4. “Estimated cost” means the anticipated cost of a public work, as determined by the City, based upon the expected costs of materials, supplies, equipment, and labor, but excluding taxes and contingency funds. 5. “Public work” refers to all City funded construction projects that constitute a public work pursuant to RCW 39.04.010 as now or hereafter amended and estimated to cost $250,000 or more. 6. “State-approved apprenticeship training program” means an apprenticeship program approved or recognized by the Washington State Apprenticeship and Training Council. 7. “Subcontractor” means a person, corporation, partnership, limited liability company, or joint venture that has contracted with the contractor to perform all or part of the work to construct a public work by a contractor. B. Apprentice utilization. Apprentices shall be utilized for the construction of public works by contractors and subcontractors in accordance with this section. 1. Apprenticeship utilization program goal. For public works contracts with an estimated cost of Two Hundred Fifty Thousand Dollars ($250,000) or more, the Director of Public Works, or his designee, is authorized to require that up to fifteen percent (15%) of the Formatted: Font: (Default) Arial, 10 pt Formatted: Justified Formatted: Font: (Default) Arial, 10 pt Formatted: Justified Packet Page 66 of 97 City of Edmonds Purchasing Policy January 201209 Page 7 of 10 16 contract labor hours, including contractor and subcontractor hours, be performed by apprentices. 2. Contract requirements. Contract documents for such public works construction projects shall include provisions detailing the apprentice labor requirements. 3. Monitoring. The City will include an Apprenticeship Utilization Form for contractors to complete when submitting their bid documents, which identifies the intended usage of apprentices by the contractor and any subcontractors. This document will require the identification of individual apprentices by name and Washington State apprenticeship registration number, an estimate of the total apprentice labor hours, and the identification of apprentice hours to be worked by minorities, women, persons with disabilities and disadvantaged youth. This provision is not intended and shall not be used to discriminate against any applicant for training. In addition, the City will require the submittal of an Apprenticeship Verification Form by the contractor at the conclusion of the public works project that will identify the actual work performed by apprentices for the contractor and subcontractors. 4. Failure to meet utilization goal. Failure by a contractor to comply with established apprenticeship requirements, unless otherwise adjusted or waived in writing as set forth below, shall be deemed a breach of contract for which the City shall be entitled to all remedies allowed by law under the contract. Failure to comply with the apprenticeship requirements may also be considered evidence bearing on a contractor’s qualification for award of future contracts with the City. 5. Adjustment and waiver. The Director of Public Works, or his designee, may adjust or waive the requirements of this section for a specific project at any time for the following reasons: (a) The demonstrated lack of availability of apprentices in specific geographic areas; (b) A disproportionately high ratio of material costs to labor hours, which does not make feasible the required minimum levels of apprentice participation; (c) The reasonable and necessary requirements of the contract render apprentice utilization infeasible at the required levels; (d) In order to meet the requirement, the contractor will be forced to displace members of its workforce; Packet Page 67 of 97 City of Edmonds Purchasing Policy January 201209 Page 8 of 10 16 (e) The participating contractor has demonstrated a good faith effort to comply with the requirements of this section; and/or Other criteria deemed appropriate that are not inconsistent with the purpose and goals of this section. Responsible Bidder Criteria A. Mandatory responsible bidder criteria. 1. The bidder responsibility criteria set forth in this section shall be used by the Public Works Department to establish the minimum requirements for all contractors and subcontractors bidding on City contracts for public work (as those terms are defined in RCW 39.04.010). The bid documents shall set forth the documentation to be submitted by bidders to demonstrate their compliance with the mandatory responsible bidder criteria. 2. To be considered a responsible bidder and qualified to be awarded a City contract for public work, the bidder must: (a) At the time of bid submittal, have a certificate of registration in compliance with chapter 18.27 RCW (contractor registration); (b) Have a current state unified business identifier (UBI) number; (c) If applicable, have: (i) industrial insurance coverage for the bidder’s employees working in Washington as required in Title 51 RCW; (ii) a state employment security department number as required in Title 50 RCW; and (iii) a state excise tax registration number as required in Title 82 RCW; (d) Not be disqualified from bidding on any public works contract under RCW 39.06.010 or RCW 39.12.065(3); and (e) Until December 31, 2013, not have violated RCW 39.04.370 more than one time as determined by the State Department of Labor and Industries. 3. A bidder must verify mandatory responsibility criteria for each first tier subcontractor, and a subcontractor of any tier that hires other subcontractors must verify mandatory responsibility criteria for each of its subcontractors. Verification shall include that each subcontractor, at the time of subcontract execution, meets the responsibility criteria listed Formatted: Font: Not Bold, Not Italic, No underline Formatted: Font: (Default) Arial, 10 pt Formatted: Justified Packet Page 68 of 97 City of Edmonds Purchasing Policy January 201209 Page 9 of 10 16 in RCW 39.04.350(1) and ECC 18.00.060 and possesses an electrical contractor license, if required by chapter 19.28 RCW, or an elevator contractor license, if required by chapter 70.87 RCW. This verification requirement, as well as the mandatory responsibility criteria, must be included in every public works contract and subcontract of every tier. B. Supplemental responsible bidder criteria. 1. In addition to the mandatory bidder responsibility criteria set forth in ECC 18.00.060 (A), the Public Works Department may adopt in connection with a particular project relevant supplemental bidder responsibility criteria which the bidder must meet. Those supplemental criteria, including the basis for evaluation and the deadlines for requesting modification of the supplemental bidder responsibility criteria and for appealing a determination that a low bidder is not responsible under the supplemental bidder responsibility criteria, shall be provided in the invitation to bid or bidding documents. 2. As relevant to a particular project, supplemental bidder responsibility criteria may be included to require that: (a) The bidder shall not owe delinquent taxes to the Washington State Department of Revenue without a payment plan approved by the Department of Revenue; (b) The bidder shall not currently be debarred or suspended by the federal government; (c) The bidder shall have complied with minority and women’s business enterprises, disadvantaged business enterprises, or other similar utilization requirements or goals on federally-funded public works projects with such requirements completed by the bidder within three years of the bid submittal date, unless there are extenuating circumstances acceptable to the City; (d) The bidder shall not be listed as an ineligible contractor on the federal GSA Excluded Parties List System set forth by 31 U.S.C § 6101 and Executive Order 13496; (e) If bidding on a public works project subject to the apprenticeship utilization requirements in ECC 18.00.050, the bidder: (i) shall not have been found out of compliance with apprenticeship requirements of ECC 18.00.050 unless otherwise excepted or waived in writing by the Mayor or the Mayor’s designee pursuant to that section for a one-year period immediately preceding the date of the bid submittal deadline; and (ii) shall have complied with apprenticeship utilization goals on public works projects having such requirements that were completed by the bidder within a three-year period immediately preceding the date of the bid submittal deadline, unless there are extenuating circumstances acceptable to the City; Formatted: Justified Packet Page 69 of 97 City of Edmonds Purchasing Policy January 201209 Page 10 of 10 16 (f) The bidder shall not have been convicted of a crime involving bidding on a public works contract within five years from the bid submittal deadline; (g) The bidder’s standard subcontract form shall include the subcontractor responsibility language required by RCW 39.06.020, and the bidder shall have an established procedure which it utilizes to validate the responsibility of each of its subcontractors. The bidder’s subcontract form shall also include a requirement that each of its subcontractors shall have and document a similar procedure to determine whether the sub-tier subcontractors with which it contracts are also “responsible” subcontractors as defined by RCW 39.06.020; (h) The bidder shall not have a record of excessive claims filed against the retainage or payment bonds for public works projects during the previous three years that demonstrate a lack of effective management by the bidder of making timely and appropriate payments to its subcontractors, suppliers, and workers, unless there are extenuating circumstances acceptable to the City; (i) The bidder shall have successfully completed projects of a similar size and scope as required by the contract documents for the project. In evaluating whether projects were successfully completed, the City may check owner references for previous projects and evaluate the owner’s assessment of bidder performance, including but not limited to quality control, safety record, timeliness of performance, use of skilled personnel, management of subcontractors, availability of and use of appropriate equipment, compliance with contract documents, and management of submittals process, change orders and close-out; (j) The bidder shall not have had any public works contract terminated for cause by a government agency during the five year period immediately preceding the bid submittal deadline for the project, unless there are extenuating circumstances acceptable to the City; (k) The bidder shall not have judgments entered by a court of law against the bidder within five years of the bid submittal date that demonstrate a pattern of failing to meet the terms of contracts, unless there are extenuating circumstances acceptable to the City; and (l) The bidder shall not have a documented pattern of prevailing wage complaints filed against it within five years of the bid submittal date that demonstrates a failure to pay workers prevailing wages, unless there are extenuating circumstances acceptable to the City. 3. Supplemental bidder responsibility criteria may include any other criteria determined by the City to be relevant to the particular project being bid, including but not limited to the ability, capacity and skill of the bidder to perform, the experience and efficiency of the bidder, the financial situation of the bidder, and the performance of the bidder on previous contracts or services. 4. In a timely manner before the bid submittal deadline, a potential bidder may request that the City modify the supplemental bidder responsibility criteria. The City must evaluate the information submitted by the potential bidder and respond before the bid submittal deadline. If the evaluation results in a change of the criteria, the City must publish an addendum to the bidding documents identifying the modified criteria. Packet Page 70 of 97 City of Edmonds Purchasing Policy January 201209 Page 11 of 10 16 5. If the bidder fails to supply information requested concerning responsibility within the time and manner specified in the bid documents, the City may base its determination of responsibility upon any available information related to the supplemental criteria or may find the bidder not responsible. 6. If the City determines a bidder to be not responsible, the City must provide, in writing, the reasons for the determination. The bidder may appeal the determination within the time period specified in the bidding documents by presenting additional information to the City. The City must consider the additional information before issuing its final determination. If the final determination affirms that the bidder is not responsible, the City may not execute a contract with any other bidder until two business days after the bidder determined to be not responsible has received the final determination. 7. The invitation to bid or bidding documents shall specify the times, manner and means of communications, deadlines and determinations required by this section. Small Works Roster The City of Edmonds has entered into an agreement with Municipal Research and Services Center, whereas they will maintain the Small Works Roster. Resolution 1155, passed November 5, 2007 established a small works roster process to award public works contracts, and is incorporated below. The Mayor (or designee) is authorized to proceed with procurement from the Rosters, provided funds have been budgeted by Council. Use of the Small Works Roster allows the City to preclude the advertisement requirements and sealed bidding procedures of the formal competitive process. All other bidding procedures and requirements not in conflict remain the same. The following small works roster procedures are established for use by the City pursuant to RCW 39.04.155: 1. Cost. The City need not comply with formal sealed bidding procedures for the construction, building, renovation, remodeling, alteration, repair, or improvement of real property where the estimated cost does not exceed TwoThree Hundred Thousand Dollars ($2300,000.00), which includes the costs of labor, material, equipment and sales and/or use taxes as applicable. Instead, the City may use the small works roster procedures for public works projects as set forth herein. The breaking of any project into units or accomplishing any projects by phases is prohibited if it is done for the purpose of avoiding the maximum dollar amount of a contract that may be let using the small works roster process. 2. Publication. At least once a year, on behalf of the City, MRSC shall publish in a newspaper of general circulation within the jurisdiction a notice of the existence of the roster or rosters and solicit the names of contractors for such roster or rosters. Responsible contractors shall be added to appropriate MRSC roster or rosters at any time that they submit a written request and necessary records. The City may require master contracts to be signed that become effective when a specific award is made using a small works roster. 3. Telephone or Written Quotations. The City shall obtain telephone, written or electronic quotations (in accordance with City of Edmonds Purchasing Policies and Procedures) for public works contracts from contractors on the appropriate small works roster to assure that a competitive price is established and to award contracts to a contractor who meets the mandatory Formatted: Body Text, None, Indent: Left: 0.5", Right: 0.5", Tab stops: 6", Left + Not at 0.25" + 0.5" Formatted: Font: Not Bold, Not Italic, No underline Packet Page 71 of 97 City of Edmonds Purchasing Policy January 201209 Page 12 of 10 16 bidder responsibility criteria in RCW 39.04.350(1) and any pre-establish supplementary bidder criteria under RCW 39.04.350(2). a) A contract awarded from a small works roster need not be advertised. Invitations for quotations shall include an estimate of the scope and nature of the work to be performed as well as materials and equipment to be furnished. However, detailed plans and specifications need not be included in the invitation. b) Quotations may be invited from all appropriate contractors on the appropriate small works roster. As an alternative, quotations may be invited from at least five contractors on the appropriate small works roster who have indicated the capability of performing the kind of work being contracted, in a manner that will equitably distribute the opportunity among the contractors on the appropriate roster. "Equitably distribute" means that the City may not favor certain contractors on the appropriate small works roster over other contractors on the appropriate small works roster who perform similar services. If the estimated cost of the work is from one hundred fifty thousand dollars ($1500,000) to two three hundred thousand dollars ($2300,000), and the City chooses to solicit bids from at least five, but less than all the appropriate contractors on the appropriate small works roster, the City must notify the remaining contractors on the appropriate small works roster that quotations on the work are being sought. The City has the sole option of determining whether this notice to the remaining contractors is made by: (i) publishing notice in a legal newspaper in general circulation in the area where the work is to be done; (ii) mailing a notice to these contractors; or (iii) sending a notice to these contractors by facsimile or email. c) At the time bids are solicited, the City representative shall not inform a contractor of the terms or amount of any other contractor's bid for the same project; d) A written record shall be made by the City representative of each contractor's bid on the project and of any conditions imposed on the bid. Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by telephone inquiry. 4. Limited Public Works Process. If a work, construction, alteration, repair, or improvement project is estimated to cost less than thirty-five thousand dollars ($35,000), the City may award such a contract using the limited public works process provided under RCW 39.04.155(3). For a limited public works project, the City will solicit electronic or written quotations (note: no telephone quotations permitted) from a minimum of three contractors from the appropriate small works roster and shall award the contract to the lowest responsible bidder as defined under RCW 39.04.010. After an award is made, the quotations shall be open to public inspection and available by electronic request. For limited public works projects, the City may waive the payment and performance bond requirements of chapter 39.08 RCW and the retainage requirements of chapter 60.28 RCW, thereby assuming the liability for the contractor's nonpayment of laborers, mechanics, subcontractors, materialmen, suppliers, and taxes imposed under Title 82 RCW that may be due from the contractor for the limited public works project. However, the City shall have the right of recovery against the contractor for any payments made on the contractor's behalf. The City shall maintain a list of the contractors contacted and the contracts awarded during the previous 24 months under the limited public works process, including the name of the contractor, the contractor's registration number, the amount of the contract, a brief description of the type of Packet Page 72 of 97 City of Edmonds Purchasing Policy January 201209 Page 13 of 10 16 work performed, and the date the contract was awarded. 5. Determining Lowest Responsible Bidder. The contract must be awarded to the contractor submitting the lowest responsible bid, or all bids must be rejected. If all bids are rejected, the City may call for new bids. A responsible bidder shall be a registered and/or licensed contractor who meets the mandatory bidder responsibility criteria established by RCW 39.04.350 and any supplementary criteria pre-established by the City. 6. Award. For contracts of $3100,000 or more, the Mayor or his designee shall present all quotations/bids and recommendation for award of the contract to the lowest responsible bidder to the City Council for approval. For public works project contracts of less than $3100,000, the Mayor or his designee shall have the authority to award public works contracts. 7. Bond and Other Requirements. Vendors/contractors selected off the Small Works Roster are not relieved from observing applicable legal requirements such as Bid Bond, Performance Bond, Retainage Requirements, Prevailing Wage, Labor and Material Bonding, etc. The City may waive bid bond for any solicitation using the Small Works Roster process, and/or performance bond for any contract awarded using the limited public works process. Change Orders on Public Works Construction Contracts Approval of change orders on Public Works Construction Contracts shall be in accordance with the following requirements: 1. City Council members shall be notified by e-mail of any change order in excess of $50,000. 2. City Council approval shall be required for: a) any change order in excess of $100,000 b) any change order which puts the total of change orders on a project over the designated management reserve. c) If City Council approval is required for a change order, but circumstances require a speedier approval, the Mayor is authorized to approve the required work provided that the change order and a written statement of the special circumstances requiring speedier approval is placed on the next City Council agenda for review. Reimbursement of Expenses Travel and Meeting Expenses Travel or training requires the requesting department director’s prior approval. Expenses incurred on authorized travel will be reimbursed as submitted on the required, itemized, Claim for Expenses form. Receipts must be submitted with the claim form for all expenses except meals. To qualify for reimbursement, submitted expenses must be within 30 days of incurrence, reasonable and prudent under the circumstances, and directly relate to the conduct of City business or service. Reimbursement for personal expenses is prohibited. Travel mileage by private vehicle is reimbursed at the City’s established rate, which is the current IRS rate. Other Issues Interlocal Agreements Solicitation of bids/quotations is not required when purchases of materials, supplies, or equipment are made under State standard contracts or similar contracts executed by and through other local governments. The City Council must approve an interlocal agreement with the local government or State Formatted: Font: 12 pt Formatted: Centered Formatted: Font: Not Bold Formatted: Font: Not Bold Formatted: Font: Not Bold Formatted: Tab stops: 0.25", Left Formatted: Tab stops: 0.25", Left + 0.75", Left Formatted: Indent: Left: 0", Hanging: 1", Tab stops: 0.25", Left + 0.75", Left Packet Page 73 of 97 City of Edmonds Purchasing Policy January 201209 Page 14 of 10 16 agency after confirming that the other government or agency has complied or intends to comply with its own statutory requirements and either (i) posted the bid or solicitation notice on a web site established and maintained by a public agency, purchasing cooperative, or similar service provider, for purposes of posting public notice of bid or proposal solicitations, or (ii) provided an access link on the state's web portal to the notice. Neither solicitation of bids/quotations nor interlocal agreement is required when purchasing materials, supplies, or equipment from or through the United States of America or any agency thereof (RCW 39.32.070). All internal procurement approval requirements must be observed and the process must comply with state statutory requirements. Sole Source Procurement If, after conducting a good faith review of available resources, the requesting department director determines that there is only one source of the required materials, supplies, equipment or service (including public works), a purchase may be awarded without complying with established bid requirements. The requesting department will submit a written request for sole source procurement with negotiated contract price, terms, conditions and delivery for approval. The vendor must certify that the City is getting the lowest price offered as compared to similarly situated clients, terms and conditions. Department directors can approve Sole Source purchases up to $50,000, the department director and the Mayor can approve sole source purchases costing more that $50,000 but less than $100,000. Council must approve sole source purchases costing more that $100,000. Immediately after the award of any sole source purchase, the factual basis for awarding the same must be recorded and open to public inspection. Special Market Conditions The City may waive established bidding requirements if an opportunity arises to purchase favorably- priced supplies, materials or equipment unrelated to public works projects that will be sold before the City can conduct the bid process. The City may waive established bidding requirements and acquire any supplies, materials, and equipment through an auction if the items can be purchased at a competitive price. Waiver will be authorized by the Mayor (or designee). Immediately after the award of any special market conditions contract, the contract and the factual basis for awarding the same must be recorded and open to public inspection. Emergencies In case of unforeseen circumstances beyond the control of the City that present a real and immediate threat to the City’s ability to properly perform essential functions, or to City property or the safety of citizens and/or staff, the Mayor (or designee) can waive bid requirements to purchase supplies, materials, equipment or services to stabilize the emergency condition. Purchases must be properly documented as an emergency as soon as possible following the event. Within two weeks of confirming the emergency existed, the City Council will adopt a resolution certifying the emergency situation existed. Record Retention Requirements All quote/bid documents must be retained as indicated in the State of Washington Retention Schedule and be available for public inspection. Packet Page 74 of 97 City of Edmonds Purchasing Policy January 201209 Page 15 of 10 16 State Minimum Bidding Requirements On a case by case basis, the City Council may waive any requirement contained in the City’s purchasing policies and procedures as long as the result complies with applicable state laws. Conflicts of Interest The City will not accept donations of materials or services in return for a commitment to continue or initiate a purchasing agreement. No employee will participate in a procurement when they are aware of a conflict of interest, or accept gifts or gratuities from existing or potential vendors in return for a commitment to continue or initiate a purchasing relationship. See also RCW 42.23.030 and Chapter 3.70 ECC. Forms and Templates Purchasing forms and templates may be obtained from the public directory. Recyclables Every effort will be made to use products made from recycled materials if such products are available, of acceptable quality, and generally priced the same as similar, non-recycled products (Resolution 766). Surplus Items The City may acquire property from another governmental entity on mutually agreeable terms without soliciting bids/quotations. Store-Issued Charge Cards It is sometimes necessary to use store-issued charge cards. The Department Managers will request prior approval from the Finance Director or designee before establishing account. Purchase Cards Purchase cards can be issued with the approval of the Finance Director. They are to be used solely for City-authorized business purposes. See Credit Card Policy. Quick Checks Quick checks may be issued to avoid incurring penalties, interest, or late charges. Submit requests for quick checks to the Finance Department. Quick checks will be approved by the Finance Director or designee. Departments should avoid requests for quick checks by informing vendors of invoice deadlines and payment schedules. Early Release Any checks requiring an early release must be approved by the Finance Director or designee. Departments should avoid requests for early release by informing vendors of invoice deadlines and payment schedules. Petty Cash Petty cash funds cover minor disbursements. Employees may be reimbursed from petty cash funds for authorized purchases that total less than the established, petty-cash limit. Packet Page 75 of 97 City of Edmonds Purchasing Policy January 201209 Page 16 of 10 16 Budget Adjustments Department directors (or designees) must ensure that purchases are initiated only when departmental appropriations are sufficient to cover the anticipated cost. Expenditures that exceed departmental appropriations require the Mayor’s approval via the Budget Adjustment Request Form. Exclusive Contract Agreements The City may enter into an exclusive contract with a vendor in order to ensure the lowest prices on goods and/or services unrelated to architecture, engineering, land survey or public works requiring competitive bidding. All departments must use exclusive vendor unless special circumstances such as emergencies, vendor does not carry exact product, etc. Expenditures of Direct or Indirect Federal Financial Assistance Prior to contracting for goods or services which will be paid for with either direct or indirect Federal financial assistance, where vendors have not signed a self certification, vendors must be checked against the Excluded Parties List System to assure they have not been suspended/debarred and are prohibited from receiving federal funds (http://www.epls.gov/). Documentation of verification must be retained and available for audit. See related Grant and Intergovernmental Loan Policy. Finance Committee The Finance Committee, composed of two Council members and the Finance Director, will review and update the City of Edmonds’ purchasing and accounts payable policies and procedures, as necessary. Packet Page 76 of 97 AM-4485 Item #: 4. B. City Council Committee Meetings Date: 01/10/2012 Time:10 Minutes Submitted For:Shawn Hunstock Submitted By:Carl Nelson Department:Finance Committee:Finance Type:Information Information Subject Title Quarterly report regarding fiber optic opportunities. Recommendation from Mayor and Staff For Informational Purposes Previous Council Action Resolution 1234 - Support of Continued Development of Fiber Optic Opportunities as a Source of City Revenue. Narrative The August 24, 2010 presentation of "Edmonds Fiber Optic Broadband Initiative - Background and Update" resulted in Resolution 1234 - setting the policy to review Fiber Optic "opportunity that serves the interest of the citizenry of Edmonds" and requiring quarterly reports to the Finance Committee. Progress has been made: SNOCOM is a user of City provided internet services, the Edmonds Center for the Arts has been connected and testing is proceeding. The Building at 110 James street will soon be using City provided internet services, and downtown business and a tenant at the Port of Edmonds is considering using City of Edmonds fiber for a portion of their business needs. Attachment 1 shows a Dec 31st 2011 snapshot of expenditures to date (minor changes may occur due to month end postings) and, using these numbers, Attachment 2 shows, with the addition of SNOCOM, the estimated break even date has moved up to Jan 2015 from Apr 2015. Expenditures for the 2011 Fiber Optic Budget have been: ISP charges (approx $11,000), Professional Services ($7,500), and Repairs/Maintenance ($6,160 - which was used to complete internal fiber cross splices for connectivity between City Hall, Public Safety, and the old fiber end point in Fire station 17). Attachments Attachment 1 (expenditures) Attachment 2 (analysis) Form Review Inbox Reviewed By Date Finance Shawn Hunstock 01/05/2012 05:03 PM City Clerk Sandy Chase 01/05/2012 05:11 PM Mayor Dave Earling 01/06/2012 08:52 AM Final Approval Sandy Chase 01/06/2012 08:54 AM Form Started By: Carl Nelson Started On: 01/05/2012 Final Approval Date: 01/06/2012 Packet Page 77 of 97 2006 2007 2008 2009 2010 2010 2011 2011 (as of 1/5/12) Title/Object Actuals Actuals Actuals Actuals Actuals Budgeted Budgeted Prelim Actuals 310 SUPPLIES -$ -$ -$ 7,888.99$ -$ 7,888.99$ 1,000.00 -$ 7,888.99$ 350 SMALL EQUIPMENT - - - 17,336.17 1,463.62 1,000.00 18,799.79 0.00 - 18,799.79$ 410 PROFESSIONAL SERVICES 7,795.68 34,886.87 76,370.39 93,116.02 46,826.36 54,000.00 258,995.32 5,000.00 7,450.92 266,446.24$ 420 COMMUNICATIONS - - 34,186.06 43,932.95 21,109.44 25,000.00 99,228.45 13,200.00 10,994.40 110,222.85$ 450 RENTAL/LEASE - - - 4,552.93 3,948.00 - 8,500.93 4,000.00 - 8,500.93$ 480 REPAIRS & MAINTENANCE - - - 2,456.39 114.46 3,600.00 2,570.85 2,500.00 6,160.00 8,730.85$ 490 MISCELLANEOUS - - 6.05 600.00 2,772.47 - 3,378.52 - - 3,378.52$ 640 EQUIPMENT - 126,248.00 - - - - 126,248.00 - - 126,248.00$ Total 7,795.68 161,134.87 110,562.50 169,883.45 76,234.35 24,605.32$ 550,216.17$ reimbursement(a)(20,874.08) (20,874.08) -3375 Est:(24,249.08) 55,360.27 504,736.77 525,967.09 Fiber Optic Budget (Page 31 of 2009/2010 Budget)292,062.00 197,200.00 113,600.00 83,600.00 25,700.00 Difference between budget and expenditures (181,499.50)$ (27,316.55)$ (58,239.73)$ (28,239.73)$ (237,055.78)$ (1,094.68)$ (238,150.46)$ (267,055.78)$ after budget adj a) Attachment 1 Total as of 10/02/2011 2010 Professional Services figures take into consideration reimbursement by project partners totaling $20,874.08 through 12/31/2010. City of Edmonds Fiber Project Costs FY 2006 - 2011 Total as of 12/31/2010 Packet Page 78 of 97 ATTACHMENT 2 Costs incurred to date: Description 7/28/2010 12/31/2010 12/31/2011 $7,888.99 $ 7,888.99 $7,888.99 Small Equipment:Small scale purchases for switching and routing equipment (accessories) necessary to expand the networks ability to accommodate additional partners. $17,336.17 18,799.79 $18,799.79 Professional Svc:Consulting for Configuration, Design, Install, Legal fees and consulting fees for the Program Director. (July 22nd MOU with City of Seattle will reduce this by $20,245.38) $236,439.11 $ 238,121.24 $ 242,197.16 Communications:Fees paid to the regional fiber consortium for shared costs of certain assets and fees paid for Internet access. $92,902.82 99,228.45 $110,222.85 Rental & Lease:Pole rental $8,007.43 8,500.93 $8,500.93 Repair & Maintenance:Fees paid to the regional fiber consortium for shared Maintenance of certain assets as well as repairs to wholly owned fiber assets. $2,570.85 2,570.85 $8,730.85 Miscellaneous $628.52 3,378.52 $3,378.52 Equipment:Fiber construction & Equipment costs associated with establishing service and connection of new partners to the network. $126,248.00 $ 126,248.00 $ 126,248.00 TOTAL Costs to Date $492,021.89 $504,736.77 $525,967.09 Estimated Ongoing Expenditures: Per Month 7/28/2011 12/31/2010 12/31/2011 Ongoing costs of $196/month for pole rental and consortium dues $196 $2,352 $3,332 $2,352 Internet Service Provider $1,000 $12,000 $17,000 $12,000 Cisco Maintenance $2,000 $2,000 TOTALS $16,352 $22,332 $14,352 Recurring savings or revenues implemented: Item Total Revenue Per Month 7/28/2010 12/31/2010 12/31/2011 Replacement of (2) T-1's to City Offices Began 1/2007 $1,100 $34,100 $39,600 $52,800 Video Arraignment - reduction transportation (Feb 2010 estimate)$2,750 $16,500 $30,250 $63,250 Video Arraignment – reduction in Jail Days $2,769 $16,614 $30,459 $63,687 TOTAL SAVINGS $6,619 $67,214 $100,309 $179,737 NetRiver (starting Jan 2007, increa $48,500 $1,500 $48,500 $56,000 $74,000 SNOCOM (starting Aug 2011)$3,000 TOTAL BENEFIT TO CITY $48,500 $8,119 $115,714 $156,309 $256,737 BALANCE ($376,307.89)($348,427.77)($269,230.09) Years to pay off:4.3 3.9 3.0 Likely pay off date:10/30/2014 12/16/2015 1/22/2015 Savings/Revenues as of Costs as of: Item Item Supplies:Miscellaneous publishing of plans, documents and drawings in support of the projects major directives. Yearly and "To date" Costs as of: Packet Page 79 of 97 AM-4479 Item #: 4. C. City Council Committee Meetings Date: 01/10/2012 Time:10 Minutes Submitted For:Shawn Hunstock Submitted By:Shawn Hunstock Department:Finance Committee:Finance Type:Action Information Subject Title Investment Policy Recommendation from Mayor and Staff Recommend forwarding the investment policy to City Council for approval. Previous Council Action N/A Narrative The investment policy creates standards for prudence in making investment decisions with the City's available cash, creates objectives of the investment policy and establishes benchmarks against which performance will be measured. The draft policy also provides for quarterly updates to Council on investment performance as prescribed by State law. Attachments Investment Policy Form Review Inbox Reviewed By Date City Clerk Sandy Chase 01/05/2012 09:37 AM Mayor Dave Earling 01/05/2012 03:01 PM Final Approval Sandy Chase 01/05/2012 03:07 PM Form Started By: Shawn Hunstock Started On: 01/05/2012 Final Approval Date: 01/05/2012 Packet Page 80 of 97 1 1. Policy It is the policy of the City of Edmonds to invest public funds in a manner which will provide maximum security with the highest investment return while meeting the daily cash flow demands of the City of Edmonds and conforming to all state and local statutes governing the investment of public funds. 2. Scope This investment policy applies to all financial assets of the City of Edmonds. These funds are accounted for in the City’s Comprehensive Annual Financial Report and include the following:  General Fund  Special Revenue Funds  Capital Project Funds  Enterprise Funds  Trust and Agency Funds  Retirement/Pension Funds Any new fund created by the legislative body, unless specifically exempted. 3. Prudence Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. CITY OF EDMONDS INVESTMENT POLICY Subject: Investment Policy Original Policy Date: April 4, 2007 Originating Department: Finance Division Last Revision Date: June 30, 2007 Approved By: Shawn Hunstock, Director, Finance & Information Services Packet Page 81 of 97 2 The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 4. Objective The primary objectives, in priority order, of the City’s investment activities shall be: • Safety: Safety of the principal is the foremost objective of the investment program. Investments of the City of Edmonds shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To obtain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. • Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City of Edmonds to meet all operating requirements that might be reasonably anticipated. • Return on Investment: The City’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and the cash flow characteristics of the portfolio. 5. Delegation of Authority Authority to manage the City’s investment program is hereby delegated to the Finance Director who will act as the City’s Investment Officer and Treasurer. The Finance Director shall establish written procedures for the operation of the investment program consistent with this investment policy. Procedures should include reference to: safekeeping, PSA master repurchase agreements, wire transfer agreements, custody agreements and investment related banking services contracts. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Finance Director, whom shall act as the City’s Treasurer. The Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. 6. Ethics and Conflicts of Interest Packet Page 82 of 97 3 Officers and employees involved in the investment process shall refrain from personal business activity that may conflict with the proper execution of the investment program, or may impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Council any material financial interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose any personal financial/investment positions that could be related to the performance of the City’s portfolio. Employees and officers shall subordinate their personal investment transactions to those of the City of Edmonds, particularly with regard to the timing of purchases and sales. 7. Authorized Financial Dealers and Institutions The Treasurer will maintain a list of financial institutions authorized to provide investment services. In addition, a list will also be maintained of approved security broker/dealers selected by credit worthiness. These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule). No public deposits shall be made except in qualified public depositaries as provided in Chapter 39.58 RCW. All brokers/dealers and financial institutions who desire to do business with the City of Edmonds must supply the Treasurer with the following: • Audited financial statements • Proof of National Association of Securities Dealers certification • Certification of having read the City’s investment policy • Proof of state registration • Copy of city and state business licenses The Treasurer will conduct an annual review of the financial condition of firms. A current audited financial statement is required to be on file for each financial institution and broker/dealer with whom the City of Edmonds invests. Investment purchases from any institution or broker/dealer which does not satisfy the criteria established herein must be approved in advance by the City Council. 8. Authorized and Suitable Investments The City of Edmonds is empowered to invest in the following types of securities: • U.S. Government obligations, U.S. government agency obligations, and U.S. government instrumentality obligations, which have a liquid market with a readily determinable market value; Packet Page 83 of 97 4 • U.S. Treasury securities maturing in less than ten (10) years; • Fully insured or collateralized certificates of deposit, and other evidences of deposit, at qualified financial institutions that are approved by the Washington Public Deposit Protection Commission (WPDPC). • Banker’s acceptances, and commercial paper rated in the highest tier by a nationally recognized rating agency; • Investment-grade obligations of state, local governments and public authorities located within the State of Washington; • Local government investment pools, either state-administered or through joint powers statutes and other intergovernmental agreement legislation. 9. Collateralization Collateralization is required on repurchase agreements. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be (102%) of market value of principal and accrued interest. Pursuant to state statutes (RCW 35.98) the deposit of public funds and the placement of investment deposits (i.e. time deposits, money market deposit accounts and savings deposits of public funds) will be placed only with institutions approved by the Washington Public Deposit Protection Commission (PDPC) as eligible for deposit of public funds. The maximum amount placed with any one depository will not exceed the net worth of the institution as determined by the PDPC. In accordance with PDPD regulations, such investments are 100% collateralized. Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The right of substitution is granted. 10. Safekeeping and Custody All security transactions, including collateral for repurchase agreements, entered into by the City of Edmonds shall be conducted on a delivery-versus-payment (DVP) basis. Securities purchased by the entity will be delivered against payment and held in a custodial safekeeping account. The Treasurer will designate a third party custodian and safekeeping receipts will evidence all transactions. 11. Diversification The City of Edmonds will diversify its investments by security type and institution. Packet Page 84 of 97 5 11.1 No more than fifty percent (50%) of the City’s portfolio, at the time of purchase, shall be in any single financial institution. 11.2 Except that no more than seventy-five percent (75%) of the City’s portfolio, at the time of purchase, shall be invested in the Washington Local Government Investment Pool, and 11.3 No more than seventy-five percent (75%) of the City’s portfolio, at the time of purchase, shall be invested in U.S. Treasury or Agency securities. 11.4 The City’s Finance Committee can recommend to the City Council variance to 11.1, 11.2 or 11.3 prior to purchase if it is deemed in the best overall benefit to the City. 12. Maximum Maturities To the extent possible, the City of Edmonds will attempt to match its investments with anticipated cash flow requirements. 12.1 At the time of investment, a minimum of thirty percent (30%) of the portfolio will be comprised of investments maturing or available within one year. 12.2 At the time of investment, eighty percent (80%) of the portfolio will be comprised of investments maturing or available within five (5) years and no investments shall have a maturity exceeding ten (10) years, except when compatible with a specific fund’s investment needs. 12.3 To provide for on-going market opportunity, investment maturities should be laddered or staggered to avoid the risk resulting from overconcentration of portfolio assets in a specific maturity. 12.4 The average maturity of the portfolio shall not exceed three and one half (3 ½) years or forty-two months. 12.5 Any variance to 12.1, 12.2, 12.3 or 12.4 can be approved by City Council prior to occurrence, and if deemed in the City’s best interest. Reserve and retirement funds may be invested in securities exceeding ten (10) years if the maturity of such investments are made to coincide as nearly as practical with the expected use of the funds. 13. Internal Controls The Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. 14. Performance Standards Packet Page 85 of 97 6 The investment portfolio will be designed to obtain an average rate of return during budgetary and economic cycles, consistent with the investment objectives and cash flow needs. The City’s investment strategy is to actively manage investment selection, maturity and yield to maximize earnings. Given this strategy, the basis used by the Treasurer to determine performance levels will be the six-month Treasury bill rate for non-reserve funds. 15. Reporting The Treasurer shall provide the City Council consistent periodic reporting on a quarterly basis. These reports shall provide an accurate and meaningful representation of the investment portfolio, its performance versus the established benchmark, and proof of compliance with the investment policy. Quarterly reports will include, at a minimum, the following: • A listing of individual securities held at the end of the reporting period. • Average life and final maturity of all investments listed. • Coupon, discount or earnings rate. • Par value, amortized book value and market value. • Percentage of the portfolio in each investment category. 16. Investment Policy Adoption The City’s investment policy shall be adopted by resolution of the City Council, upon recommendation from the Finance Committee. The policy shall be reviewed on at least an annual basis by the Finance Committee and any modification to the policy will be made upon approval by the City Council. Packet Page 86 of 97 AM-4478 Item #: 4. D. City Council Committee Meetings Date: 01/10/2012 Time:10 Minutes Submitted For:Shawn Hunstock Submitted By:Shawn Hunstock Department:Finance Committee:Finance Type:Information Information Subject Title General Fund Update - November 2011 Recommendation from Mayor and Staff Informational purposes only. Previous Council Action N/A Narrative General Fund update for the month of November 2011. Attachments General Fund Report Nov 2011 Form Review Inbox Reviewed By Date City Clerk Sandy Chase 01/05/2012 09:37 AM Mayor Dave Earling 01/05/2012 03:02 PM Final Approval Sandy Chase 01/05/2012 03:07 PM Form Started By: Shawn Hunstock Started On: 01/05/2012 09:15 AM Final Approval Date: 01/05/2012 Packet Page 87 of 97 i CITY OF EDMONDS GENERAL FUND UPDATE NOVEMBER, 2011 Overview The attached report provides the following information regarding the General Fund: - 2011 revised annual budget of revenue and expenditures - January 2011 through November 2011actual revenues and expenditures - The variance in dollars between budget and actual results - Actual compared to budget expressed as a percentage. November represents 92% of the year (11 months divided by 12 months). Discussed below are the revenues and expenditures where there is a material variance from actual to budget: Revenues: - Property Taxes - are collected twice a year (May & November). The November receipts were collected in the current month. It is anticipated there will be continuing receipts of smaller amounts through the end of the calendar year. More than likely, though, this line item will end the year under budget. - Telephone Utility Tax – Since Feb 2011 actuals have been below budget. Year end is targeted to be $1,390,000 which is $173,000 (11%) below budged amount of $1,563,000. See attached chart for further details. - Licenses & Permits - actuals in excess of budget relate to the franchise agreements of approximately $100,000 from Blackrock and Verizon not budgeted in 2011. We are also expecting to be over budget in Building Permit revenue by approximately 10% by year end. - Intergovernmental - In the last couple months we received yearly PUD Privilege tax revenue of $181,000 and quarterly Liquor Profits of $56,000. We also have approximately $90,000 of unbudgeted intergovernmental billings with Fire District #1. These billings relate to utilities the City pays for fire stations and is reimbursed by the Fire District. Year end is targeted to be $1,000,000 which is $107,000 (12%) above budged amount of $893,000. - Charges for Goods & Services - actuals in excess to budget relate to Inter-fund reimbursement of the General Fund, EMS Transport Fees, Park & Rec Program Fees and Plan Check Fees. Year end is targeted to be $3,900,000 which is $263,000 (7%) above budged amount of $3,637,000. Expenditures: - Salaries & Benefits – actuals below budget due to open positions from 2011 retirements and resignations as well as 2011 budgeted but unfilled positions. - Supplies – actuals below budget across most City departments. - Intergovernmental – actuals above budget due to a number of 4th quarter payments to vendors (FD 1, SNOCOM, ESCA, etc) being paid at the start of the current quarter. - Debt Service – are paid twice a year (June & December), therefore the September report only shows June’s payments. Packet Page 88 of 97 2011 Revised Annual Budget YTD Actuals Variance % Rec/Exp BEGINNING FUND BALANCE 6,855,108 6,855,108 - REVENUES: REAL PERSONAL / PROPERTY TAX 9,506,114 9,156,303 349,811 96% EMS PROPERTY TAX 3,233,038 3,383,984 (150,946) 105% VOTED PROPERTY TAX 877,984 827,745 50,239 94% LOCAL RETAIL SALES/USE TAX 4,524,195 4,217,978 306,217 93% NATURAL GAS USE TAX 16,667 10,729 5,938 64% 1/10 SALES TAX LOCAL CRIM JUST 530,130 472,653 57,477 89% GAS UTILITY TAX 890,000 784,883 105,117 88% T.V. CABLE UTILITY TAX 698,865 658,145 40,720 94% TELEPHONE UTILITY TAX 1,563,454 1,251,138 312,316 80% ELECTRIC UTILITY TAX 1,532,043 1,357,263 174,780 89% SOLID WASTE UTILITY TAX 285,918 260,946 24,972 91% WATER UTILITY TAX 764,082 742,119 21,963 97% SEWER UTILITY TAX 470,000 433,373 36,627 92% STORMWATER UTILITY TAX 237,600 228,895 8,705 96% LEASEHOLD EXCISE TAX 250,938 162,963 87,975 65% PULLTABS TAX 61,043 61,723 (680) 101% LICENSES AND PERMITS 1,484,829 1,575,207 (90,378) 106% INTERGOVERNMENTAL 893,692 967,465 (73,773) 108% CHARGES FOR GOODS AND SERVICES 3,637,480 3,777,775 (140,295) 104% FINES AND FORFEITURES 667,100 575,231 91,869 86% MISCELLANEOUS 339,073 381,930 (42,857) 113% INTERFUND TRANSFERS 114,727 12,543 102,184 11% 32,578,972 31,300,990 1,277,982 96% EXPENDITURES: SALARIES / WAGES 12,728,874 11,408,624 1,320,250 90% BENEFITS 4,385,811 3,809,429 576,382 87% SUPPLIES 531,862 365,706 166,156 69% SERVICES 4,003,708 3,445,415 558,293 86% INTERGOVERNMENTAL 8,876,513 8,331,318 545,195 94% CAPITAL OUTLAY - - - 0% DEBT SERVICE PRINCIPAL 1,111,369 62,752 1,048,617 6% DEBT SERVICE INTEREST 340,759 198,979 141,780 58% INTERFUND SERVICES 646,172 540,896 105,276 84% 32,625,068 28,163,118 4,461,950 86% CHANGE IN FUND BALANCE (YTD)(46,096) 3,137,872 (3,183,968) ENDING FUND BALANCE 6,809,012 9,992,980 (3,183,968) Page 1 of 6 City of Edmonds General Fund Update November 2011 Packet Page 89 of 97 20 1 0 O U T L O O K 54 2 , 6 0 0 20 1 1 B U D G E T 7 0 0 , 0 0 0 TOTAL JA N F E B M A R A P R M A Y J U N J U L A U G S E P O C T N O V D E C Mo n t h l y F o r e c a s t % 8 % 5 % 7 % 8 % 8 % 1 0 % 9 % 1 1 % 1 0 % 1 0 % 8 % 7 % Cu m u l a t i v e F o r e c a s t % 8 % 1 3 % 1 9 % 2 8 % 3 6 % 4 6 % 5 5 % 6 6 % 7 6 % 8 6 % 9 3 % 1 0 0 % Mo n t h l y F o r e c a s t $ 5 4 , 5 0 9 3 5 , 4 1 5 4 5 , 8 5 4 5 8 , 5 4 8 5 5 , 9 7 5 7 1 , 3 6 3 6 5 , 1 3 8 7 5 , 8 8 2 6 7 , 5 2 5 6 8 , 7 2 6 5 4 , 7 9 8 46,268 Cu m u l a t i v e F o r e c a s t $ 5 4 , 5 0 9 8 9 , 9 2 3 1 3 5 , 7 7 7 1 9 4 , 3 2 5 2 5 0 , 3 0 0 3 2 1 , 6 6 3 3 8 6 , 8 0 1 4 6 2 , 6 8 3 5 3 0 , 2 0 8 5 9 8 , 9 3 4 6 5 3 , 7 3 2 700,000 Ac t u a l C o l l e c t e d $ 6 4 , 4 5 0 2 6 , 9 9 2 3 0 , 9 6 9 6 1 , 1 9 3 5 1 , 9 6 4 3 6 , 9 2 1 5 1 , 9 3 8 4 3 , 2 9 4 5 2 , 8 8 6 5 1 , 2 3 2 3 4 , 8 9 6 35,864 Cu m u l a t i v e C o l l e c t i o n $ 6 4 , 4 5 0 9 1 , 4 4 2 1 2 2 , 4 1 1 1 8 3 , 6 0 4 2 3 5 , 5 6 8 2 7 2 , 4 8 9 3 2 4 , 4 2 7 3 6 7 , 7 2 1 4 2 0 , 6 0 7 4 7 1 , 8 3 9 5 0 6 , 7 3 5 542,600 YE A R E N D F O R E C A S T 8 2 7 , 6 6 7 7 1 1 , 8 2 2 6 3 1 , 0 9 0 6 6 1 , 3 8 0 6 5 8 , 7 9 9 5 9 2 , 9 8 8 5 8 7 , 1 2 1 5 5 6 , 3 3 0 5 5 5 , 3 0 1 5 5 1 , 4 5 9 5 4 2 , 6 0 0 542,600 Pr o j e c t e d Y E V a r i a n c e 1 2 7 , 6 6 7 1 1 , 8 2 2 ( 6 8 , 9 1 0 ) ( 3 8 , 6 2 0 ) ( 4 1 , 2 0 1 ) ( 1 0 7 , 0 1 2 ) ( 1 1 2 , 8 7 9 ) ( 1 4 3 , 6 7 0 ) ( 1 4 4 , 6 9 9 ) ( 1 4 8 , 5 4 1 ) ( 1 5 7 , 4 0 0 ) (157,400) Bu d g e t V a r i a n c e % 18 % 2% -1 0 % -6 % -6 % -1 5 % -1 6 % -2 1 % -2 1 % -21%-22%-22% Ci t y o f E d m o n d s 20 1 1 M o n t h l y R e v e n u e F o r e c a s t i n g M o d e l RE A L E S T A T E E X C I S E T A X - 2 0 0 , 0 0 0 4 0 0 , 0 0 0 6 0 0 , 0 0 0 8 0 0 , 0 0 0 JA N FE B MA R AP R MA Y JU N JU L AU G SE P OC T NO V DEC 20 1 1 C U M U L A T I V E CO L L E C T I O N S Ac t u a l s / T r e n d Bu d g e t R: \ F i n a n c e C o m m i t t e e \ 2 0 1 1 \ M o n t h l y R e p o r t s \ G F R e p o r t 1 1 . 2 0 1 1 1 1 C H A R T S Pa g e 2 o f 6 1/5/2012 9:02 AM Pa c k e t Pa g e 90 of 97 20 1 1 O U T L O O K 4, 5 6 9 , 4 9 8 20 1 1 B U D G E T 4 , 5 2 4 , 1 9 5 TOTAL JA N F E B M A R A P R M A Y J U N J U L A U G S E P O C T N O V D E C Mo n t h l y F o r e c a s t % 8 % 1 0 % 7 % 8 % 9 % 8 % 8 % 9 % 8 % 8 % 9 % 8 % Cu m u l a t i v e F o r e c a s t % 8 % 1 8 % 2 5 % 3 3 % 4 1 % 4 9 % 5 7 % 6 6 % 7 5 % 8 3 % 9 2 % 1 0 0 % Mo n t h l y F o r e c a s t $ 3 6 1 , 1 3 8 4 5 8 , 8 5 6 3 2 0 , 3 0 7 3 3 9 , 6 1 5 3 9 2 , 1 8 8 3 5 1 , 8 8 1 3 5 3 , 1 3 9 4 2 2 , 2 0 1 3 7 6 , 0 2 1 3 7 8 , 9 3 0 4 2 1 , 8 8 4 348,035 Cu m u l a t i v e F o r e c a s t $ 3 6 1 , 1 3 8 8 1 9 , 9 9 4 1 , 1 4 0 , 3 0 2 1 , 4 7 9 , 9 1 6 1 , 8 7 2 , 1 0 4 2 , 2 2 3 , 9 8 5 2 , 5 7 7 , 1 2 4 2 , 9 9 9 , 3 2 5 3 , 3 7 5 , 3 4 5 3 , 7 5 4 , 2 7 6 4 , 1 7 6 , 1 6 0 4,524,195 Ac t u a l C o l l e c t e d $ 3 5 8 , 4 1 5 4 4 9 , 7 9 1 3 4 4 , 7 1 3 3 2 5 , 2 7 9 4 2 4 , 5 6 7 3 6 5 , 3 8 1 3 7 5 , 9 8 2 4 1 1 , 3 9 2 3 5 2 , 6 8 1 3 8 7 , 6 9 3 4 2 2 , 0 8 5 351,520 Cu m u l a t i v e C o l l e c t i o n $ 3 5 8 , 4 1 5 8 0 8 , 2 0 5 1 , 1 5 2 , 9 1 8 1 , 4 7 8 , 1 9 7 1 , 9 0 2 , 7 6 4 2 , 2 6 8 , 1 4 5 2 , 6 4 4 , 1 2 7 3 , 0 5 5 , 5 1 9 3 , 4 0 8 , 2 0 0 3 , 7 9 5 , 8 9 3 4 , 2 1 7 , 9 7 7 4,569,498 YE A R E N D F O R E C A S T 4 , 4 9 0 , 0 7 5 4 , 4 5 9 , 1 5 0 4 , 5 7 4 , 2 5 1 4 , 5 1 8 , 9 3 9 4 , 5 9 8 , 2 8 9 4 , 6 1 4 , 0 2 9 4 , 6 4 1 , 8 2 0 4 , 6 0 8 , 9 5 9 4 , 5 6 8 , 2 3 2 4 , 5 7 4 , 3 4 7 4 , 5 6 9 , 4 9 8 4,569,498 Pr o j e c t e d Y E V a r i a n c e ( 3 4 , 1 2 0 ) ( 6 5 , 0 4 5 ) 5 0 , 0 5 6 ( 5 , 2 5 6 ) 7 4 , 0 9 4 8 9 , 8 3 4 1 1 7 , 6 2 5 8 4 , 7 6 4 4 4 , 0 3 7 5 0 , 1 5 2 4 5 , 3 0 3 45,303 Bu d g e t V a r i a n c e % -1 % -1 % 1% 0% 2% 2% 3% 2% 1% 1%1%1% Ci t y o f E d m o n d s 20 1 1 M o n t h l y R e v e n u e F o r e c a s t i n g M o d e l SA L E S A N D U S E T A X - 5 0 0 , 0 0 0 1 , 0 0 0 , 0 0 0 1 , 5 0 0 , 0 0 0 2 , 0 0 0 , 0 0 0 2 , 5 0 0 , 0 0 0 3 , 0 0 0 , 0 0 0 3 , 5 0 0 , 0 0 0 4 , 0 0 0 , 0 0 0 4 , 5 0 0 , 0 0 0 5 , 0 0 0 , 0 0 0 JA N F E B M A R A P R M A Y J U N J U L A U G S E P O C T N O V D E C 20 1 1 C U M U L A T I V E CO L L E C T I O N S Ac t u a l s / T r e n d Bu d g e t R: \ F i n a n c e C o m m i t t e e \ 2 0 1 1 \ M o n t h l y R e p o r t s \ G F R e p o r t 1 1 . 2 0 1 1 1 1 C H A R T S Pa g e 3 o f 6 1/5/2012 9:02 AM Pa c k e t Pa g e 91 of 97 20 1 1 O U T L O O K 85 8 , 3 9 2 20 1 1 B U D G E T 8 9 0 , 0 0 0 TOTAL JA N F E B M A R A P R M A Y J U N J U L A U G S E P O C T N O V D E C Mo n t h l y F o r e c a s t % 1 4 % 1 5 % 1 3 % 1 1 % 9 % 7 % 5 % 4 % 3 % 4 % 6 % 9 % Cu m u l a t i v e F o r e c a s t % 1 4 % 2 9 % 4 2 % 5 3 % 6 2 % 6 9 % 7 5 % 7 8 % 8 1 % 8 5 % 9 1 % 1 0 0 % Mo n t h l y F o r e c a s t $ 1 2 4 , 2 9 7 1 3 1 , 6 4 5 1 1 9 , 1 9 6 9 7 , 0 6 9 8 2 , 9 4 5 6 2 , 2 6 2 4 5 , 7 2 8 3 2 , 2 5 1 2 9 , 9 3 0 3 2 , 6 3 7 5 5 , 8 2 5 76,215 Cu m u l a t i v e F o r e c a s t $ 1 2 4 , 2 9 7 2 5 5 , 9 4 2 3 7 5 , 1 3 8 4 7 2 , 2 0 7 5 5 5 , 1 5 2 6 1 7 , 4 1 3 6 6 3 , 1 4 1 6 9 5 , 3 9 2 7 2 5 , 3 2 2 7 5 7 , 9 6 0 8 1 3 , 7 8 5 890,000 Ac t u a l C o l l e c t e d $ 1 1 8 , 2 1 6 1 1 9 , 2 7 9 1 1 1 , 0 7 6 1 0 3 , 9 8 8 8 3 , 7 2 8 6 2 , 6 5 9 4 5 , 2 0 7 3 2 , 7 9 1 3 0 , 3 0 7 2 9 , 2 4 3 4 8 , 3 8 9 73,508 Cu m u l a t i v e C o l l e c t i o n $ 1 1 8 , 2 1 6 2 3 7 , 4 9 5 3 4 8 , 5 7 1 4 5 2 , 5 5 9 5 3 6 , 2 8 7 5 9 8 , 9 4 6 6 4 4 , 1 5 3 6 7 6 , 9 4 4 7 0 7 , 2 5 1 7 3 6 , 4 9 5 7 8 4 , 8 8 4 858,392 YE A R E N D F O R E C A S T 8 4 6 , 4 6 0 8 2 5 , 8 5 4 8 2 6 , 9 7 1 8 5 2 , 9 6 8 8 5 9 , 7 5 7 8 6 3 , 3 7 9 8 6 4 , 5 1 6 8 6 6 , 3 8 9 8 6 7 , 8 2 6 8 6 4 , 7 9 5 8 5 8 , 3 9 2 858,392 Pr o j e c t e d Y E V a r i a n c e ( 4 3 , 5 4 0 ) ( 6 4 , 1 4 6 ) ( 6 3 , 0 2 9 ) ( 3 7 , 0 3 2 ) ( 3 0 , 2 4 3 ) ( 2 6 , 6 2 1 ) ( 2 5 , 4 8 4 ) ( 2 3 , 6 1 1 ) ( 2 2 , 1 7 4 ) ( 2 5 , 2 0 5 ) ( 3 1 , 6 0 8 ) (31,608) Bu d g e t V a r i a n c e % - 5 % - 7 % - 7 % - 4 % - 3 % - 3 % - 3 % - 3 % - 2 % - 3 % - 4 % -4% Ci t y o f E d m o n d s 20 1 1 M o n t h l y R e v e n u e F o r e c a s t i n g M o d e l GA S U T I L I T Y T A X - 2 0 0 , 0 0 0 4 0 0 , 0 0 0 6 0 0 , 0 0 0 8 0 0 , 0 0 0 1 , 0 0 0 , 0 0 0 JA N F E B M A R A P R M A Y J U N J U L A U G S E P O C T N O V D E C 20 1 1 C U M U L A T I V E CO L L E C T I O N S Ac t u a l s / T r e n d Bu d g e t R: \ F i n a n c e C o m m i t t e e \ 2 0 1 1 \ M o n t h l y R e p o r t s \ G F R e p o r t 1 1 . 2 0 1 1 1 1 C H A R T S Pa g e 4 o f 6 1/5/2012 9:02 AM Pa c k e t Pa g e 92 of 97 20 1 1 O U T L O O K 1, 4 3 0 , 5 9 5 20 1 1 B U D G E T 1 , 5 6 3 , 4 5 4 TOTAL JA N F E B M A R A P R M A Y J U N J U L A U G S E P O C T N O V D E C Mo n t h l y F o r e c a s t % 6 % 1 0 % 1 0 % 6 % 9 % 7 % 1 0 % 9 % 6 % 1 1 % 6 % 1 3 % Cu m u l a t i v e F o r e c a s t % 6 % 1 5 % 2 5 % 3 1 % 4 0 % 4 6 % 5 6 % 6 5 % 7 1 % 8 2 % 8 7 % 1 0 0 % Mo n t h l y F o r e c a s t $ 8 8 , 1 0 5 1 4 8 , 9 7 1 1 4 9 , 5 0 1 9 8 , 5 6 0 1 3 4 , 1 5 4 1 0 1 , 8 3 2 1 4 9 , 2 0 0 1 3 9 , 7 7 7 9 7 , 1 7 8 1 7 3 , 1 5 3 8 6 , 9 0 0 196,123 Cu m u l a t i v e F o r e c a s t $ 8 8 , 1 0 5 2 3 7 , 0 7 6 3 8 6 , 5 7 6 4 8 5 , 1 3 6 6 1 9 , 2 9 1 7 2 1 , 1 2 3 8 7 0 , 3 2 3 1 , 0 1 0 , 1 0 0 1 , 1 0 7 , 2 7 8 1 , 2 8 0 , 4 3 1 1 , 3 6 7 , 3 3 1 1,563,454 Ac t u a l C o l l e c t e d $ 1 1 9 , 0 4 6 7 6 , 8 4 0 1 3 4 , 7 6 4 1 1 3 , 6 9 8 1 1 0 , 4 9 8 1 1 0 , 7 4 7 1 0 7 , 1 5 7 1 1 6 , 5 5 1 1 1 8 , 8 8 7 1 3 0 , 5 6 1 1 1 2 , 3 9 0 179,457 Cu m u l a t i v e C o l l e c t i o n $ 1 1 9 , 0 4 6 1 9 5 , 8 8 6 3 3 0 , 6 4 9 4 4 4 , 3 4 7 5 5 4 , 8 4 5 6 6 5 , 5 9 2 7 7 2 , 7 4 9 8 8 9 , 3 0 0 1 , 0 0 8 , 1 8 7 1 , 1 3 8 , 7 4 8 1 , 2 5 1 , 1 3 8 1,430,595 YE A R E N D F O R E C A S T 2 , 1 1 2 , 5 1 4 1 , 2 9 1 , 8 1 6 1 , 3 3 7 , 2 6 6 1 , 4 3 2 , 0 0 2 1 , 4 0 0 , 7 5 6 1 , 4 4 3 , 0 5 9 1 , 3 8 8 , 1 7 1 1 , 3 7 6 , 4 7 7 1 , 4 2 3 , 5 3 9 1 , 3 9 0 , 4 5 4 1 , 4 3 0 , 5 9 5 1,430,595 Pr o j e c t e d Y E V a r i a n c e 5 4 9 , 0 6 0 ( 2 7 1 , 6 3 8 ) ( 2 2 6 , 1 8 8 ) ( 1 3 1 , 4 5 2 ) ( 1 6 2 , 6 9 8 ) ( 1 2 0 , 3 9 5 ) ( 1 7 5 , 2 8 3 ) ( 1 8 6 , 9 7 7 ) ( 1 3 9 , 9 1 5 ) ( 1 7 3 , 0 0 0 ) ( 1 3 2 , 8 5 9 ) (132,859) Bu d g e t V a r i a n c e % 3 5 % - 1 7 % - 1 4 % - 8 % - 1 0 % - 8 % - 1 1 % - 1 2 % - 9 % - 1 1 % - 8 % -8% Ci t y o f E d m o n d s 20 1 1 M o n t h l y R e v e n u e F o r e c a s t i n g M o d e l TE L E P H O N E U T I L I T Y T A X - 2 5 0 , 0 0 0 5 0 0 , 0 0 0 7 5 0 , 0 0 0 1 , 0 0 0 , 0 0 0 1 , 2 5 0 , 0 0 0 1 , 5 0 0 , 0 0 0 1 , 7 5 0 , 0 0 0 2 , 0 0 0 , 0 0 0 JA N F E B M A R A P R M A Y J U N J U L A U G S E P O C T N O V D E C 20 1 1 C U M U L A T I V E CO L L E C T I O N S Ac t u a l s / T r e n d Bu d g e t R: \ F i n a n c e C o m m i t t e e \ 2 0 1 1 \ M o n t h l y R e p o r t s \ G F R e p o r t 1 1 . 2 0 1 1 1 1 C H A R T S Pa g e 5 o f 6 1/5/2012 9:02 AM Pa c k e t Pa g e 93 of 97 20 1 1 O U T L O O K 1, 4 5 7 , 3 6 4 20 1 1 B U D G E T 1 , 5 3 2 , 0 4 3 TOTAL JA N F E B M A R A P R M A Y J U N J U L A U G S E P O C T N O V D E C Mo n t h l y F o r e c a s t % 1 0 % 1 2 % 1 1 % 1 1 % 9 % 8 % 7 % 6 % 7 % 6 % 7 % 7 % Cu m u l a t i v e F o r e c a s t % 1 0 % 2 2 % 3 2 % 4 3 % 5 2 % 6 0 % 6 7 % 7 3 % 8 0 % 8 6 % 9 3 % 1 0 0 % Mo n t h l y F o r e c a s t $ 1 5 4 , 3 4 4 1 8 0 , 8 6 5 1 6 1 , 0 3 9 1 6 1 , 3 9 7 1 4 2 , 2 0 7 1 1 6 , 7 9 8 1 1 0 , 5 9 7 9 6 , 9 3 1 1 0 1 , 3 8 1 8 8 , 7 7 9 1 1 2 , 4 7 4 105,231 Cu m u l a t i v e F o r e c a s t $ 1 5 4 , 3 4 4 3 3 5 , 2 0 9 4 9 6 , 2 4 8 6 5 7 , 6 4 5 7 9 9 , 8 5 2 9 1 6 , 6 5 1 1 , 0 2 7 , 2 4 7 1 , 1 2 4 , 1 7 8 1 , 2 2 5 , 5 5 9 1 , 3 1 4 , 3 3 8 1 , 4 2 6 , 8 1 2 1,532,043 Ac t u a l C o l l e c t e d $ 1 6 3 , 7 7 0 1 4 2 , 7 4 3 1 5 1 , 1 9 7 1 6 2 , 8 2 2 1 4 0 , 8 8 7 1 1 3 , 7 1 5 1 0 7 , 5 7 9 8 8 , 0 7 8 1 0 1 , 1 3 3 8 4 , 0 6 8 1 0 1 , 2 6 9 100,101 Cu m u l a t i v e C o l l e c t i o n $ 1 6 3 , 7 7 0 3 0 6 , 5 1 4 4 5 7 , 7 1 1 6 2 0 , 5 3 3 7 6 1 , 4 2 0 8 7 5 , 1 3 5 9 8 2 , 7 1 4 1 , 0 7 0 , 7 9 2 1 , 1 7 1 , 9 2 5 1 , 2 5 5 , 9 9 3 1 , 3 5 7 , 2 6 3 1,457,364 YE A R E N D F O R E C A S T 1 , 6 2 5 , 6 1 2 1 , 4 0 0 , 8 9 5 1 , 4 1 3 , 0 6 9 1 , 4 4 5 , 5 8 7 1 , 4 5 8 , 4 3 0 1 , 4 6 2 , 6 5 6 1 , 4 6 5 , 6 2 6 1 , 4 5 9 , 2 8 7 1 , 4 6 4 , 9 9 6 1 , 4 6 4 , 0 3 4 1 , 4 5 7 , 3 6 4 1,457,364 Pr o j e c t e d Y E V a r i a n c e 9 3 , 5 6 9 ( 1 3 1 , 1 4 8 ) ( 1 1 8 , 9 7 4 ) ( 8 6 , 4 5 6 ) ( 7 3 , 6 1 3 ) ( 6 9 , 3 8 7 ) ( 6 6 , 4 1 7 ) ( 7 2 , 7 5 6 ) ( 6 7 , 0 4 7 ) ( 6 8 , 0 0 9 ) ( 7 4 , 6 7 9 ) (74,679) Bu d g e t V a r i a n c e % 6 % - 9 % - 8 % - 6 % - 5 % - 5 % - 4 % - 5 % - 4 % - 4 % - 5 % -5% Ci t y o f E d m o n d s 20 1 1 M o n t h l y R e v e n u e F o r e c a s t i n g M o d e l EL E C T R I C U T I L I T Y T A X - 2 5 0 , 0 0 0 5 0 0 , 0 0 0 7 5 0 , 0 0 0 1 , 0 0 0 , 0 0 0 1 , 2 5 0 , 0 0 0 1 , 5 0 0 , 0 0 0 1 , 7 5 0 , 0 0 0 JA N F E B M A R A P R M A Y J U N J U L A U G S E P O C T N O V D E C 20 1 1 C U M U L A T I V E CO L L E C T I O N S Ac t u a l s / T r e n d Bu d g e t R: \ F i n a n c e C o m m i t t e e \ 2 0 1 1 \ M o n t h l y R e p o r t s \ G F R e p o r t 1 1 . 2 0 1 1 1 1 C H A R T S Pa g e 6 o f 6 1/5/2012 9:02 AM Pa c k e t Pa g e 94 of 97 AM-4480 Item #: 5. A. City Council Committee Meetings Date: 01/10/2012 Time:15 Minutes Submitted By:Mary Ann Hardie Department:Human Resources Committee:Public Safety Type:Action Information Subject Title Reclassification of positions (SEIU union). Recommendation from Mayor and Staff As part of the approved 2012 budget and the job descriptions update stage of the compensation study through Public Sector Personnel Consultants (PSPC), several positions have been identified for reclassification and/or classification in the SEIU union as of 1/1/12. Previous Council Action Previously, reclassification requests have been approved by the Mayor and Council through the budget process and/or union negotiations. These were all included in the budget process. Narrative There are six positions that have been identified for reclassification or classification into the SEIU union as outlined in the attached memo as follows: Accounting Assistant, Computer Support Technician, Cultural Services Assistant, Gymnastics Supervisor, Inventory Control Assistant and Public Disclosure & Records Management Specialist. We anticipate that there may be more title changes as a result of the job description update, however, do not anticipate fiscal impact. Attachments 2012 Reclassifications - SEIU Form Review Inbox Reviewed By Date Parks and Recreation Carrie Hite 01/05/2012 02:38 PM City Clerk Sandy Chase 01/05/2012 02:44 PM Mayor Dave Earling 01/05/2012 03:00 PM Final Approval Sandy Chase 01/05/2012 03:07 PM Form Started By: Mary Ann Hardie Started On: 01/05/2012 01:45 PM Final Approval Date: 01/05/2012 Packet Page 95 of 97 City of Edmonds – Human Resources Department PHONE: 425-775-2525 FAX: 425-771-0252 E-MAIL: hardie@ci.edmonds.wa.us Date: January 4, 2012 To: Council, Mayor Dave Earling From: Mary Ann Hardie Subject: Reclassification of positions (SEIU union) As part of the approved 2012 budget and the job description update stage of the classification and compensation study currently being performed by Public Sector Personnel Consultants (PSPC), the following positions have been identified as positions that need to be: 1) reclassified to a higher level job classification in the SEIU pay classification scale and/or; 2) classified in the SEIU union as of 1/1/12 based on the scope of work duties.* For this reason, a thorough study of market comparables of matching or similar job descriptions and pay ranges for these positions is currently being performed. The results, which will include pay classification levels (or as budgeted) are in the process of being reviewed and will be shared as soon as possible with Council & the Mayor when ready (in the next few weeks). Accounting Assistant (currently an SEIU position) The Accounting Assistant position will be performing expanded work duties at the level of an Accounting Technician which is part of the approved reorganization in the 2012 budget. ACTION: Reclassification from an Accounting Assistant to an Accounting Technician position. Computer Support Technician (currently an SEIU position) The Computer Support Technician position will be performing expanded work duties at the level of an Information Systems Specialist or Information Systems Technician which is part of the approved 2012 budget. ACTION: Reclassification from Computer Support Technician to an Information Systems Specialist or a similar type/level of position. Cultural Services Assistant (currently an SEIU position) The previous Cultural Services Assistant retired at the end of December 2012. This job description was updated to reflect expanded work duties at the level of an Office Specialist or similar type/level of position. ACTION(Recommendation/Request): Reclassification from a Cultural Services Assistant to a Recreation Specialist or a similar type/level of position. MEMORANDUM Packet Page 96 of 97 Page 2 Gymnastics Supervisor (not a current SEIU position) The Gymnastics Supervisor will be performing expanded work duties that will make this hourly position a regular, part-time position (eligible for benefits and union membership) and is part of the approved 2012 budget. ACTION: Reclassification from a Gymnastics Supervisor to a Recreation Specialist or a similar type/level of position and classification in the SEIU union. Inventory Control Assistant (currently an SEIU position) The Inventory Control Assistant job duties in this position more closely match the work duties of an Administrative Assistant and is part of the approved 2012 budget. ACTION: Reclassification from an Inventory Control Assistant to an Administrative Assistant position. Public Disclosure & Records Management Specialist (currently not an SEIU position) The Public Disclosure & Records Management Specialist is a new, part-time position approved in the 2012 budget that may have job duties that would require it to be classified in the SEIU union. ACTION: Classification in the SEIU union if required.* *Further discussion with the City Attorney pending. Packet Page 97 of 97