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HomeMy WebLinkAboutCOW 2020-08-10 COMPLETE AGENDA PACKETTukwila City Council Agenda • ❖ COMMITTEE OF THE WHOLE ❖ Allan Ekberg, Mayor Counci/members: ❖ Verna Seal ❖ Kathy Hougardy David Cline, City Administrator ❖ Kate Kruller ❖ Thomas McLeod De'Sean Quinn, Council President ❖ Zak Idan ❖ Cynthia Delostrinos Johnson THE MEETING WILL NOT BE CONDUCTED AT TUKWILA CITY HALL, BASED ON THE GOVERNOR'S PROCLAMATION 20-28 ADOPTED MARCH 24, 2020 WHICH SAYS IN PART: ANY PUBLIC AGENCY, SUBJECT TO RCW 42.30, IS PROHIBITED FROM CONDUCTING ANY MEETING, SUBJECT TO RCW 42.30 UNLESS (A) THE MEETING IS NOT CONDUCTED IN -PERSON AND INSTEAD PROVIDES AN OPTION(S) FOR THE PUBLIC TO ATTEND THE PROCEEDINGS THROUGH, AT MINIMUM, TELEPHONIC ACCESS, ..." THE PHONE NUMBER FOR THE PUBLIC TO LISTEN TO THE MEETING IS: 1-253-292-9750, ACCESS CODE: 670077847#. For Technical Support during the meeting call: 1-206-431-2179. Monday, August 10, 2020; 7:00 PM Tukwila City Hall Council Chambers 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE 2. PUBLIC Those wishing to provide public comments will have the opportunity to deliver COMMENTS public comments via email. All written comments received by email to citycouncil@tukwilawa.gov prior to 5:00 PM on the date of the meeting can be read aloud during the meeting by City staff within the normal five-minute time limit. Please clearly indicate whether you want your e-mail read during Public Comments at the next Tukwila City Council meeting. 3. SPECIAL ISSUES a. Weekly COVID-19 report. Pg.1 b. COVID-19 financial impact report. Pg.17 c. An interim flood plain management ordinance. Pg.31 d. A contract for school speed zone automated safety cameras. Pg.61 e. An ordinance regarding the Astound Broadband franchise agreement. Pg.99 f. A briefing on tourism promotion and lodging taxes. Pg.111 g. Fire Department 6-month financial report . Pg.133 4. REPORTS a. Mayor b. City Council c. Staff d. Legislative Analyst 5. MISCELLANEOUS 6. ADJOURNMENT This agenda is available at www.tukwilawa.gov, and in alternate formats with advance notice for those with disabilities. ILRemote Tukwila Council meetings are audio taped (available at www.tukwilawa.gov) COUNCIL AGENDA SYNOPSIS Meeting Date Prepared by Mayors review Council review 8/10/20 RB ITEM INFORMATION ITEM NO. 3.A. STAFF SPONSOR: RACHEL BIANCHI ORIGINAL AGENDA DATE: 8/ 10/ 20 AGENDA ITEM TITLE A weekly update on the City's planning and response to COVID-19 (Coronavirus) CATEGORY ® Discussion Mtg Date 08/10/20 ❑ Motion Mtg Date ❑ Resolution Alt Date ❑ Ordinance Alt Date ❑ Bid Award Mtg Date ❑ Public Hearing Aft Date ❑Other Mtg Date SPONSOR ❑ Council ® Mayor ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ TS ❑ P&R ❑ Police ❑ PW SPONSOR'S The City is actively engaged in regional efforts to address the Coronavirus (COVID-19). SUMMARY Staff are providing the Council with updated information regarding the City's response to COVID-19. REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Com ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: N/A COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. N/A COMMITTEE N/A COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 08/10/20 MTG. DATE ATTACHMENTS 08/10/20 Coronavirus Report 2 Coronavirus Response Update August 10, 2020 Essential Services and City Operations There are no changes to essential services or City operations since the last report. The Administration is currently surveying staff to understand the impacts of public schools being closed this fall on the organization. Staff leadership is seeking to understand how we can accommodate employees impacted by children engaged in distance learning this fall. Financial Stability At the May 18 City Council meeting the Council approved various measures for the mayor to implement to address the revenue shortfalls associated with the coronavirus pandemic. The Council continues to receive regular updates on the implementation of the financial measures associated with the coronavirus pandemic, the most recent of which is at the August 10, 2020 Committee of the Whole. Police Staffing and Calls for Service There have been no changes to Police staffing since the last report. Below are the calls for service for the month of July, with the 2019 calls as reference: 2020 2,511 2019 2,985 Fire Staff ine and Calls for Service There have been no changes to Fire staffing since the last report. Please see attached detailed report on the calls for service for the month of July, 2020. Human Services Human Services assisted six households containing 19 individuals this week with rental assistance with a combination of HB 1406 and City general fund dollars, totaling $6,550. One of the six households had significant utility debt was also assisted. Last week, City representatives from the King County Joint Recommendations Committee (JRC) approved round two of the CARES Act (ESG) — CV funds that allocates $11,139,409 for operational, one-time structural adjustments to shelters so they are in compliance with public health and CDC social distancing/isolation guidelines, and funds to support Rapid Rehousing, a proven model that provides financial assistance to residents moving out of shelter and into stable housing. This week the Washington State Department of Commerce announced it is dedicating $100 million in state CARES Act funding for rental assistance programs. These funds will be distributed to various community -based 3 organizations for distribution around the state; recipients can get up to three months in rent and the program is expected to last through the end of the year. Business Recovery Business Re -Openings As of August 5, King County continues in Phase 2 of Washington's "Safe Start" four phase business reopening plan. On July 28th the Governor extended the pause indefinitely on counties moving into new phases of Safe Start. He also announced additional guidance, most of which was covered in last week's coronavirus update. In addition, in Phase 3, table size is reduced to 5 people and occupancy is reduced to 50%. Business Assistance Work continues on SavingLocalKC.com, ExperienceTukwila, and collaborating with the Chamber and other regional organizations. On 8/3/20 the Planning and Economic Development Committee gave approval to staff to accept the $31,965 grant from King County and use it for micro grants to very small businesses, generally in the Tukwila International Boulevard area. Staff will be implementing that program over the next eight weeks. Staff sent an email to all Tukwila businesses with updates on resources. Economy Community Attributes recently released an economic impact analysis for the Seattle region. Below are a few of the key takeaways. As of June 2020, the unemployment rate in the region is currently 9.3% for the Seattle MSA, down from 14.5% in May. During the depths of the Global Financial Crisis in 2008, the Seattle MSA's unemployment rate peaked just shy of 10%. These numbers paint a clearer picture of the magnitude of the economic shock our region is experiencing, and the importance of working together on relief and recovery. The virus has disproportionately impacted people of color, workers with less education, and low-income workers. In the Seattle Metro area, more than 41% of individuals filing for unemployment between March 1 and July 11 were a person of color or Hispanic. Additionally, approximately 32% of new filers had no more than a high school diploma, compared with 26% of the regional adult population overall with a high school diploma or less. Low income workers have been more severely impacted by COVID-19. According to the Federal Reserve, 39% of people working in February with a household income below $40,000 reported a job loss in March. Meeting our Community's Basic Needs Senior Meal Distribution 58 households made up of 65 seniors and 418 meals delivered this week. The senior meal program will be funded through the end of the year through the Mayor's office. Tukwila Food Pantry The Tukwila Food Pantry remains busy with approximately 350 — 550 households served on each distribution day of Saturday, Tuesday and Thursday. 11 Parks and Recreation Youth Summer Meals Program. The Mobile Recreation program passed out 802 lunches and 779 breakfasts. They had 509 attendees and distributed 560 recreation kits and 1,219 masks. Other community partners are distributing masks delivered to them by the City, such as the Tukwila Pantry, Food Innovation Network, the Tukwila School District and Impact Public Schools. Public Safety Plan Construction Protects There have been no changes to the Public Safety Plan projects since the last report. Compliance with the Governor's Order There have been no changes to compliance issues since the last report. 5 9 Tukwila Fire Department Volume Study July '20 Edition Fire Stn 54 Firje Stn 51 Ploasa note: AIL trausfmitn rt surlaca wamr, san=ry savwra dwrdrdlsMbLrbonraclllhasaam Im nanumus to show an ihls -Lunanary map. 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Tukwila Fire Stn 53 Rove Mh M C": iiarch 14% k054 pg. 1 Change in Case Volume Metrics ('20 vs '19) Change in Total Case Volume Change in EMS Case Volume % Change '20 vs '19 % Change Station January June Jul YTD Station Janua Februa March Aril Ma June July YTD 7% -23% -24% -23% 51 -11% 26% -12% -50% -49% -30% -27% -23% TarchMayay 5% -35% -69% -25% 52 3% 12% -1% -35% -59% -41% -74% -30% 4% -46% -23% -22% 53 -6% -7% 9% -29% -31% -37% -24% -18% 5% -14% -3% -15% 54 -7% -12% -13% -31% -24% -8% -7% -15% 6% -26% -20•0 -17% AIITFD -7% 4% -6% -28% -32% -24% -22% -17% Change in Fire Case Volume Change in Service Case Volume % Change '20 vs '19 % Change '20 vs '19 Station JanuaryFebrua March April May June Jul YTD Station JanuaryFebrua March Aril May June Jul YTD 51 -5% -4% -42% -20% -52% 00% -18% -21% 51 -50% -42% 100% -73% 17% -31% -14% -32% 52 -7% -22% 0% -11% 19% -25% -47% -14% 52 100'1 -50'1 50% -80% 700'1 50% -67% 4% 53 83% -9% -44% -1000/0 -24% -57% -14% -17% 53 -38% -87% -57% -86% N/A -80% -67% -60% 54 -35% 11% 63% 7% -41% -47% -13% -20% 54 -29% -78% -80% -14% 33% 400% 700% -6% All TFD 3% -8% -22% -9% -21% -31% 10% -15% All TFD -32% -69% -35% -61% 100•1 -13% -31% -34% Februa 51 -12% 11% 52 5% -1% 53 6% -23% 54 -11% -14% All TFD -7% -6% # Change in Case Volume Metrics ('20 vs '19) Change in Total Case Volume Change in EMS Case Volume # Change '20 vs '19 #Change '20 vs '19 Station JanuaryFebruarV March April May June July YTD Station January Februa March April May June July YTD 51 -15 12 -22 -50 -59 -27 -32 -193 51 -10 19 -10 -38 -45 -23 -24 -131 52 4 -1 0 -28 -28 -33 -61 -147 52 2 6 -1 -23 -38 -29 -SO -133 53 4 -18 -6 -24 -20 -37 -19 -120 53 -3 -4 5 -17 -21 -19 -13 -72 54 -18 -22 -17 -40 -38 -19 -4 -158 54 -9 -16 -18 -40 -32 -9 -8 -132 All TFD -35 -29 -51 -131 -135 -130 -105 -616 AIITFD -28 14 -22 -105 -129 -85 -83 -438 Change in Fire Case Volume Change in Service Case Volume #Change '20 vs '19 #Change '20 vs '19 Station January Februa March Aril Ma June July YTD Station January FebruarN March April May June July YTD 51 -1 -1 -14 -4 -14 0 -7 -41 51 -4 -5 2 -8 1 -4 -1 -19 52 -1 -4 0 -1 3 -5 -7 -15 52 3 -3 1 -4 7 1 -4 1 53 10 -1 -7 -1 -4 -13 -3 -19 53 -3 -13 -4 -6 5 -4 -4 -29 54 -7 1 5 1 -7 -14 -3 -24 54 -2 -7 -4 -1 1 4 7 -2 AIITFD 3 -7 -22 -6 -22 -40 -12 -106 AIITFD -10 -33 -7 -19 15 -3 -8 -65 Synopsis of Above Metrics 1. Total TFD Case Volume in July `20 represented a decrease of 20% compared to July '19 (Jan, Feb, March, April, May, June averaged a 17% decrease). In other words, July '20 had 105 fewer cases than July ' 19. 2. EMS continued carrying the case volume metrics lower, with 83 fewer in July '20 than July '19. There were 12 fewer Fire cases and 8 fewer Service calls over these same ranges. 3. Year to date through July 31 St, total case volume for the Tukwila Fire Department has fallen 17% compared to the same time frame in 2019. This equates to 616 fewer cases. 4. Be cautious when comparing station -specific trends due to Stn 54's Aid Car operating out of Stn 52 when staffing is low. pg. 2 Additional notes: 1. Feb 2020 is a leap month with 3.57% more days than the previous three Febs. 2. Because of their infrequent occurrence, Fire and Service response calls are more subject to wilder "% Changes" than EMS responses. YTD, we've averaged just a few of these types of calls (combined) each day. An increase or decrease of just one of these types of calls per day would result in a change of about a third. This helps to explain some of the volatility in the graphs and charts. 3. Station -related metrics are based on "Primary Station": while more than one station may respond to a single call, only the station deemed as primary by ValleyCom gets the credit. In some cases, an OSA (Outside Agency/Mutual Aid) unit will be designated as primary on a call within Tukwila. Those calls are included within "All TFD" metrics but not within individual Station metrics. pg. 3 Total Monthly Case Volume 180 160 140 120 100 80 60 40 20 0 2019 2020 2019 2020 2019 2020 51 52 53 ■January 121 106 76 80 72 76 ■ February 110 122 76 75 80 62 ■ Mardi 116 94 90 90 79 73 ■ April 107 57 80 52 76 52 ■ May 126 67 81 53 85 65 ■June 120 93 93 60 81 44 ■ July 135 103 89 28 83 64 EMS Monthly Case Volume 160 140 120 100 80 — — 60 40 20 2019 2020 2019 2020 2019 2020 51 52 53 ■ January 92 82 59 61 52 49 ■ February 73 92 52 58 54 50 ■ March 81 71 69 68 56 61 ■April 76 38 66 43 59 42 ■ May 92 47 64 26 68 47 ■June 76 53 71 42 52 33 0 July 88 64 68 18 55 1 42 pg. 4 2019 158 154 150 149 153 139 147 2019 131 136 137 128 133 108 123 54 54 2020 140 132 133 109 115 120 143 2020 122 120 119 88 101 99 115 45 40 35 30 25 20 15 10 5 0 2019 ■ January 21 ■ February 24 ■ Mardi 33 ■ April 20 ■ May 27 ■June 31 ■ July 40 16 — 14 12 10 8 6 4 2 0 2019 ■ January 8 ■ February 12 ■ March 2 ■April 11 ■ May 6 ■ June 13 ■ July 7 w 2020 51 20 23 19 16 13 31 33 2020 51 4 7 4 Fire Monthly Case Volume 2019 14 18 19 9 16 20 15 2020 2019 52 53 13 12 14 11 19 16 8 10 19 17 15 23 8 22 2020 22 10 9 9 13 10 19 Service Monthly Case Volume 2019 20 9 8 14 17 30 23 IN 2020 54 13 10 13 15 10 16 20 iJLIJLLI 2019 2020 2019 2020 2019 2020 52 53 54 3 6 8 5 7 5 6 3 15 2 9 2 2 3 7 3 5 1 5 1 7 1 7 6 1 8 5 3 4 2 3 5 1 1 5 6 2 I 6 2 1 8 pg. 5 Total Monthly Case Volume 600 500 400 300 200 100 0 2016 2017 2018 2019 2020 EMS Monthly Case Volume 450 400 350 300 250 200 150 100 50 0 2016 2017 2018 2019 2020 pg. 6 Fire Monthly Case Volume 160 140 120 100 80 60 cq 20 0 2016 2017 2018 2019 2020 Service Monthly Case Volume 6q 50 40 30 I 20 10 0 2016 2017 2018 2019 2020 pg. 7 Total Cases EMS Cases Fire Cases Service Cases Year Month Name # Cases Year Month Name # Cases --Year7 Month Name # Cases Year Month Name # Cases 2016 January 482 2016 January 377 2016 lianuary 84 2016 January 21 2016 February 456 2016 February 361 2016 February 65 2016 February 25 2016 March 519 2016 March 392 2016 March 93 2016 March 29 2016 April 464 2016 April 361 2016 April 86 2016 April 16 2016 May 489 2016 May 381 2016 May 85 2016 May 22 2016 June 489 2016 June 352 2016 June 111 2016 June 22 2016 July 535 2016 July 393 2016 July 110 2016 July 29 2016 August 532 2016 August 363 2016 August 140 2016 August 25 2016 September 429 2016 September 326 2016 September 79 2016 September 21 2016 October 483 2016 October 388 2016 October 70 2016 October 25 2016 November 433 2016 November 339 2016 November 73 2016 November 21 2016 December 440 2016 December 329 2016 December 82 2016 December 28 2017 January 448 2017 January 324 2017 January 89 2017 IJanuary 34 2017 February 475 2017 February 350 2017 February 66 2017 February 56 2017 March 522 2017 March 407 2017 March 92 2017 March 23 2017 April 459 2017 April 350 2017 April 72 2017 April 36 2017 May 474 2017 May 353 2017 May 100 2017 May 21 2017 June 508 2017 June 390 2017 June 87 2017 June 27 2017 July 526 2017 July 362 2017 July 143 2017 July 19 2017 August 531 2017 August 391 2017 August 111 2017 August 28 2017 September 456 2017 September 338 2017 September 98 2017 September 17 2017 October 477 2017 October 377 2017 October 77 2017 October 20 2017 November 526 2017 November 396 2017 November 95 2017 November 34 2017 December 469 2017 December 372 2017 December 73 2017 December 24 2018 January 475 2018 January 375 2018 January 77 2018 January 21 2018 February 433 2018 February 345 2018 February 56 2018 February 30 2018 March 448 2018 March 360 2018 March 61 2018 March 27 2018 April 447 2018 April 357 2018 April 75 2018 April 13 2018 May 485 2018 May 362 2018 May 101 2018 May 20 2018 June 527 2018 June 380 2018 June 112 2018 June 32 2018 July 489 2018 July 346 2018 July 116 2018 jJuly 24 2018 August 532 2018 August 374 2018 August 142 2018 jAugust 16 2018 September 499 2018 September 379 2018 September 91 2018 September 20 2018 October 487 2018 October 376 2018 October 88 2018 October 23 2018 November 465 2018 November 360 2018 November 73 2018 November 27 2018 December 430 2018 December 352 2018 December 44 2018 December 30 2019 January 504 2019 January 379 2019 January 93 2019 January 31 2019 February 488 2019 February 353 2019 February 83 2019 February 48 2019 March 508 2019 March 386 2019 March 101 2019 March 20 2019 April 477 2019 April 375 2019 April 70 2019 April 31 2019 May 520 2019 May 399 2019 May 104 2019 May 15 2019 June 507 2019 June 350 2019 June 131 2019 June 23 2019 July 533 2019 July 382 2019 July 121 2019 July 26 2019 August 501 2019 August 366 2019 August 102 2019 August 26 2019 September 478 2019 September 365 2019 September 93 2019 September 17 2019 October 453 2019 October 311 2019 October 110 2019 October 29 2019 November 475 2019 November 376 2019 November 69 2019 November 25 2019 December 535 2019 December 424 2019 December 82 2019 December 23 2020 January 469 2020 January 351 2020 January 96 202 JJanuary 21 2020 February 459 2020 February 367 2020 February 76 2020 February 15 2020 March 457 2020 March 364 2020 March 79 2020 March 13 2020 April 346 2020 April 270 2020 April 64 2020 April 12 2020 May 385 2020 May 270 2020 May 82 2020 May 30 2020 June 377 2020 June 265 2020 June 91 2020 June 20 2020 July 428 2020 July 299 2020 July 109 2020 July 18 , pg. 8 Call and Response Type Legend Or . CALL TYPE Literal Call Type Response Type ACCINF Acc with In' EMS ACCMDF ALS In' Acc EMS ACCWAF VehAcc Inv Water EMS AFA Fire Alarm Fire AID Aid EMS AIDH Aid Call Hazard EMS AIDMD Aid Medic EMS AIDMDH Aid Medic EMS AIDSVC Aid Service EMS AIDUNK Unknown Aid Call EMS BARK Beauty Bark Fire Fire BRSH BrushFire No Exp Fire BRSHEX BrushFire Exp Fire CHIMNE Chimney Fire Fire CO CO Alarm EMS COMFIR Commercial Fire Fire CPR CPR in Progress EMS CPRF CPR in Progress EMS DERAIF Train Derailment EMS DROWNF Drowning EMS DUMP Dum ster No Exp Fire DUMPEX Dum ster Exp Fire ELECTR Electrical Fire Fire EXPLOS Explosion No Fir Fire HZINV Haz Mat Invest EMS HZLEAK Haz Mat Leak EMS ILBURN Illegal Bum Fire INFOF Info - Non Dis N/A MC11F MCI EMS MEDIC I MEDIC Mutual Aid JEMS Or . CALL TYPE Literal Call Type Response Type MINFIR Minor Fir NoThrt Fire MUTUAL Mutual Request N/A NGASIN NatGas Lk Inside Fire NGASXT NatGas Lk Outsid Fire NONSTR NonThrt SmallFir Fire OBV Obvious EMS ODF Overdose EMS ODMDF Overdose Medic EMS ODORIN Odor Invest Service ODORXT Odor Invest Out Service POOLF Drowning Medic EMS RESCUE Rescue EMS RESFIR Residential Fire Fire RIVER River Rescue EMS SERVIC Non Aid Service Service SHACK Shack Shed Fire Fire SHOTMF Shooting Medic EMS SMOKXT Smoke Invest Out Fire SPILL Flammable Liquid EMS STABF Stabbing EMS STABMF Stabbing Medic EMS STORM Storm Service SUSFIR Poss Arson Out Fire SWFA Swfa Service UNKFIR Unk Type Fire Fire VEHCOM Comm Veh Fire Fire VEHEX Veh Fire W/Expo Fire VEHPAS Pass Veh Fire Fire WASH Washdown Service WIRES I Power Lines Down jSeNce pg. 9 16 COUNCIL AGENDA SYNOPSIS ---------------------------------- Initials Meeting Date Prepared b Ma ors review Council review 08/ 10120 Vick ITEM INFORMATION ITEM NO. 33. STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 08/10/20 AGENDA ITEM TITLE June Financial Update including COVID related data CATEGORY ® Discussion g Date 08/10/20 Aft ❑ Motion Mtg Date ❑ Resolution All Date ❑ Ordinance All Date ❑ Bid Azvard All Date ❑ Public Hearing g Date Aft ❑Other Aft g Date SPONSOR ❑Council ❑Mayor ❑HR ❑DCD ®Finance ❑Fire ❑TS ❑P&R ❑Police ❑Ply ❑Court SPONSOR'S General fund financial update including report out on COVID specific financial impacts as SUMMARY required in Resolution No. 1987 REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Comm. ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. Finance COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 08/10/20 MTG. DATE ATTACHMENTS 08/10/20 Informational Memorandum dated 08/10/20 17 in City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Vicky Carlsen, Finance Director BY: Jeff Friend, Fiscal Manager CC: Mayor Ekberg DATE: August 10, 2020 SUBJECT: General Fund Budget-to-Actuals and COVID-19 Impact Report Summary Resolution 1987 directed financial reporting on COVID-19 impacts twice a month. The City received May sales tax data allowing for general fund revenues to be updated through the end of May. This report reflects the following: - General fund: o Revenues as of May 31, 2020 o Expenditures as of June 30, 2020 - Capital projects funds: o Revenues as of June 30, 2020 o Expenditures as of June 30, 2020 The revised budget (COVID-19) noted throughout the report is for financial analysis purposes only. Any actual adjustments to the budget will require formal action from Council in the 4t" quarter of 2020. The purpose of the general fund budgets to actuals report is to summarize for the City Council the general state of revenues and expenditures and to highlight significant items. The following provides a high-level summary of the general fund financial performance and includes select capital project funds. The General Fund Report is based on financial data available as of July 29, 2020, for the period ending May 31, 2020 for revenues and June 30, 2020 for expenditures. The allocated budget is calculated to reflect monthly revenue patterns based on prior year activity with adjustments specific to COVID-19. Additional details can be found within the attached financial report. To summarize the general fund information below, revenues exceed the revised allocated budget by $1.8 million and expenditures are below allocated budget by $125 thousand. Revenues The chart on page 2, reflects general fund revenue on a monthly basis. The green bar reflects the adopted budget as amended on December 2, 2019, the blue bar indicates the revised budget reflecting projected reductions due to COVID-19, and the orange bar indicates actuals each month. In this report, revenues are reflected through May 31st and expenditures through June 30t". The chart has not yet been revised to reflect updated sales tax and property tax projections. Staff is working on an updated financial forecast that will be presented on August 241". June revenue will be updated after June sales tax revenue is received at the end of August and will be included in first financial report in September. 19 INFORMATIONAL MEMO Page 2 $8 $6 $4 $2 $0 JAN FEB MAR GENERAL FUND REVENUE CITY OF TUKW ILA GENERAL FUND REVENUES ■ Adopted Budget ■ Revised Budget(Covid-19) Actual APR MAY JUN I -M M JUL AUG SEP OCT NOV DEC YTD AS OF MAY 31.2020 REVISED BUDGET ADOPTED BUDGET (COV I D-19) ACTUAL SUMMARY BY REVENUE TYPE 2020 BDGT 2020 2020 2020 2020 VARIANCE- REVISED ANNUAL ALLOCATED ANNUAL ALLOCATED 2018 2019 2020 BDGT(COVID) % RECT PROPERTYTAX 16,416,911 8,679,615 16,416,911 4,179,615 8,094,130 8,219,100 5,067,350 887,735 31 % SALES TAX 20,510,676 7,651,154 12,898,546 5,210,937 7,620,164 7,653,899 6,333,111 1,122,175 31% ADMISSIONS TAX 870,000 377,149 470,246 234,748 421,938 414,792 318,714 83,966 37% UTILITYTAX 4,464,610 2,039,367 3,816,260 1,718,604 1,840,458 1,703,529 1,580,502 (138,102) 35% INTERFUND UTILITYTAX 2,412,000 1,326,448 2,412,000 1,326,448 946,854 1,300,992 1,425,766 99,318 59% GAMBLING & EXCISE TAX 4,426,000 2,181,636 2,064,567 1,977,876 1,969,600 1,964,337 1,654,144 (323,732) 37% TOTAL GENERAL REVENUE 49,100,197 22,255,368 38,078,530 14,648,227 20,893,145 21,256,648 16,379,587 1,731,360 33% LICENSES AND PERMITS 6,784,894 2,793,221 6,784,894 2,793,221 3,467,022 3,728,917 3,320,459 527,238 49% INTERGOVERNMENTAL REVENUE 4,403,506 2,073,926 4,403,506 2,073,926 1,490,828 2,118,913 1,932,528 (141,399) 44% CHARGES FOR SERVICES 2,588,707 741,595 2,107,235 936,953 787,854 1,319,996 382,368 (554,585) 15% OTHER INCOME 4,398,189 1,625,096 3,806,470 1,486,212 1,414,740 1,486,606 1,139,993 253,780 40% TOTAL OPERATING REVENUE 67,275,493 29,489,206 55,180,635 21,938,540 28,053,588 29,911,080 23,754,934 1 1,816,395 35% TRANSFERS IN 200,000 - 200,000 - - - - I - 0% TOTAL REVENUE 67,475,493 29,489,206 55,380,635 21,938,540 28,053,588 29,911,080 23,754,934 1 1,816,395 351 Percent of year 42% Total General Fund revenue through May 31 st was $23.8 million and is above the revised allocated budget by $1.8 million. The higher than expected actuals in January is mainly due to business license renewal activity. Business license revenue was higher than projected in January and February due to a timing difference resulting in transitioning to the State. Business license revenue that was anticipated in December 2019 was received in the first two months of this year. March is the first month that the City experienced revenue loss due to the pandemic. Revenue through May is also higher than projected due to property tax and sales tax revenue. King County allowed certain property owners to pay the 1 st installment 30 days later than normal. Less property owners than expected took advantage of this opportunity, which resulted in a timing difference that will be offset in June. By year-end, the City does anticipate property tax revenue to be close to budget. The timing adjustment for property tax was a $2 million reduction in May with an offsetting increase of $2 million in June. The sales tax table on the next page presents the dollar change over the last three reported 20 months, comparing 2020 industry year to the same period last year. Construction was stronger in INFORMATIONAL MEMO Page 3 Mar — May 2020 compared to the same period last year. This added to the increase over projected revenues. However, the Retail Trade is down more than 55% over the same period last year. Accommodation and Food Service is also down significantly, over 47%, compared to the same period of Mar — May 2019. The reduction in the retail and accommodation/food service sectors was expected. Mar - May 2019 vs 2020 By Major Industry 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 ■ Accommodation and Food Construction Retail Trade Services ■ Mar - May 2019 ■ Mar - May 2020 Industry Mar- May 2019 Mar- May 2020 $ Variance %Variance Accommodation and Food Services 702,923 304,084 (398,839) -56.7% Construction 376,141 712,019 335,878 89.3% Retail Trade 2,521,519 1,313,109 (1,208,410) -47.9% 21 INFORMATIONAL MEMO Page 4 Expenditures General Fund expenditures totaled $30 million through June, which is $125 thousand less than the revised allocated budget of $30.1 million adjusted for the impacts of the COVID-19 pandemic. C $14 c 0 $12 $10 $8 $6 $4 $2 $0 GENERAL FUND EXPENDITURES Adopted Budget Revised Budget (Covid-19) Actual JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV Expenditure Type Variances 11 DEC The chart below reflects both adopted budget, as amended on December 2, 2019 along with the allocated budget as well as a revised budget that captures the reductions from phase I (reduce overtime, travel and training, capital transfers, and extra labor), phase II (departmental budget scrubs), and phase III (labor reductions). It does not currently reflect any use of contingency funds as that will require Council action at a later date. Lootings Twenty-six businesses were broken into at the end of May and beginning of June. The mass lootings required a strong police presence that resulted in overtime costs. Fire staff were also on standby while Public Works incurred some costs related to closing streets. This chart is now updated with related supplies expenditures for June. MAYI JUNE UNBUDGETED I BUDGETED I UNBUDGETED Salaries and Department Overtime Benefits Overtime Supplies Total Police $ 24,357 $ - $ 33,617 $ 4,408 $62,382 Fire 435 - 1,003 - 1,438 Street Maintenance I - 1 2,064 2,064 Total 1 $ 24,792 1 $ 2,0641 $ 34,620 1 $ 4,4081 $ 65, 884 22 INFORMATIONAL MEMO Page 5 GENERALFUND CITY OF TUKWILA Year -to -Date as of June 30, 2020 REVISED BUDGET COMPARISON OF BUDGET ACTUAL (COVID-19) RESULTS REVISED BUDGET SALARIES AND BENEFITS AL; I UAL OVER/(UNDER) 2020 ALL ATED 2020ANNUAL 2020 ALLOCATED 2020 ANNUAL ALLOCATED 2018 2019 2020 BOOT % EXPENDED 11 Salaries 30,064,147 15,032,074 28,423,730 14,624,354 13,466,391 14,177,655 14,376,560 (247,795) 51% 12 Extra Labor 764,697 383,278 91,386 157,410 291,306 339,944 118,475 (38,935) 130% 13 Overtime 1,354,099 677,616 354,099 277,616 689,733 923,383 520,728 243,112 147% 15 Holiday Pay 555,369 65,000 555,369 65,000 94,903 75,442 63,624 (1,376) 11% 21 FICA 2,100,726 1,050,363 1,928,893 1,000,636 885,839 924,878 899,048 (101,588) 47% 22 Pension-LEOFF 2 913,369 456,685 870,169 439,405 415,357 442,896 587,334 147,930 67% 23 Pension-PERS/PSERS 1,805,556 902,778 1,525,232 821,655 824,456 878,175 863,764 42,109 57% 24 Industrial Insurance 934,878 467,439 934,878 467,439 299,866 412,785 468,241 802 50% 25 Medical & Dental 6,457,336 3,228,668 6,202,336 3,126,668 2,754,779 2,869,798 3,156,066 29,398 51% 26 Unemployment - - 200,000 15,000 18,354 10,400 27,319 12,319 14% 28 Uniform/Clothing 8,525 1,923 8,525 1,923 1,738 1,313 1,094 (829) 13% Total Salaries and Benefits 44,958,702 22,265,822 41,094,618 20,997,105 19,742,723 21,056,668 21,082,254 85,148 51% BUDGET REVISED (COVID-19) BUDGET ACTUAL COMPARISON RESULTS OF SUPPLIES, SERVICES, AND REVISED BUDGET CAPITAL ACTUAL OVER/(UNDER) 2020 ALL ATED 2020 ANNUAL 2020 ALLOCATED 2020 ANNUAL ALLOCATED 2018 2019 2020 BOOT % EXPENDED 0 Transfers 7,319,140 2,160,815 6,119,140 1,560,815 3,907,572 3,400,593 1,968,595 407,780 32% 31 Supplies 1,066,112 576,434 936,890 524,745 479,787 784,127 350,217 (174,528) 37% 34 Items Purchased for resale 22,000 22,000 22,000 22,000 16,954 18,029 1,253 (20,747) 6% 35 Small Tools 133,569 62,549 86,569 43,749 38,837 59,677 44,048 299 51% 41 Professional Services 5,908,964 2,837,572 5,546,983 2,692,779 2,826,139 2,833,659 2,326,290 (366,489) 42% 42 Communication 434,600 217,300 429,600 215,300 179,975 184,439 204,989 (10,311) 48% 43 Travel 159,630 81,638 18,496 13,771 77,146 106,861 29,925 16,154 162% 44 Advertising 47,550 25,007 31,550 18,607 19,946 10,377 5,545 (13,063) 18% 45 Rentals and Leases 2,422,514 1,211,257 1,400,579 700,290 1,199,867 1,548,697 652,698 (47,592) 47% 46 Insurance 1,047,762 1,047,762 1,007,762 1,031,762 974,066 889,957 987,671 (44,091) 98% 47 Public Utilities 2,069,101 1,508,529 2,053,101 1,502,129 957,053 1,444,442 1,405,645 (96,484) 68% 48 Repairs and Maintenance 587,912 311,222 512,912 281,222 199,954 356,616 407,564 126,342 79% 49 Miscellaneous 1,273,723 623,962 1,040,875 530,822 718,363 580,644 537,874 7,051 52% 64 Machinery & Equipment 270,000 115,000 240,000 - 46,590 45,228 5,495 5,495 2% Total Supplies, Services, and Capital 22,762,577 10,801,047 19,446,457 9,137,991 11,642,248 12,263,345 8,927,807 (210,184) 46% Total Expenditures 67,721,279 33,066,869 60,541,075 30,135,097 31,384,971 33,320,014 30,010,061 (125,036) 50% Percent of year completed 50 % Transfers The transfers line includes budgeted transfers for debt service and certain capital projects. Transfers show above allocated budget due to timing differences of when funds were transferred in 2020 vs last year but total transfers to date are only 32% of the adopted budget. It should be noted, because of existing funds in the PW Shops fund, no transfers from the general fund for this project have been required to date. COVID Expenditures General Fund expenditures related to the COVID-19 pandemic began to be incurred in March. These expenditures totaled $488,852 through June 30t" and are reported by department in the schedule below. COVID related expenditures in salaries and benefits include time dedicated to the emergency operations center (EOC) as well as time spent analyzing the financial impacts of the pandemic. Overtime and supplies are for time outside of normal operations spent in the EOC as well as time responding directly to COVID-19 related activities. Supplies are for additional PPE and disinfectant supplies. Unbudgeted costs can be applied against CARES Act funding or FEMA funding and will not affect ending fund balance. Budgeted salaries and benefits for time that has been redirected to responding to the pandemic could qualify for reimbursement from CARES Act funding. Any reimbursement for budgeted salaries and benefits would reduce the need for contingency funds 23 INFORMATIONAL MEMO Page 6 24 because the City had not received confirmation that CARES Act funding would be available. Reimbursement of these costs were not included in the proposal to close the $12 million revenue gap. BUDGETED I UNBUDGETED Department Salaries and Benefits Overtime Supplies and Benefits Department Total Council $ 1,784 $ - $ 287 $ 2,071 Mayor 72,703 - 284 72,987 Admin Services 36,354 - 399 36,753 Finance 39,434 386 372 40,192 Recreation 204,560 - 16,306 220,865 DCD 3,712 - 1,322 5,033 Court 114 137 3,401 3,652 Police 18,600 4,379 11,543 34,522 Fire 16,269 8,015 12,784 37,069 TIS 390 - 45 435 Public Works 6,673 318 13,805 20,796 Park Maintenance 14,476 - - 14,476 Total $ 415,0691 $ 13,236 $ 60,548 $ 488,852 COVID-19 Related Grants Available to the City There are several grant opportunities now available to the City to offset some of the costs incurred related to the pandemic. Below is a chart listing grant opportunities as well as what the funds may be used for. It should be noted that all of the grants are reimbursement and cannot be used to offset loss of revenue. The chart will be updated as new information becomes available. Staff will return in the near future with a plan to maximize the use of all known, available funding. Grant Amount Eligible Uses Status CARES Act $627,900 - Expenditures incurred Contract has been through Dept. of directly related to signed and returned to Commerce responding to COVID-19 Department of (supplies, overtime, Commerce for full regular time that has execution substantially shifted focus to the pandemic, unemployment, etc.) - Providing economic support to those suffering from unemployment - Providing economic support to business interruptions FEMA No cap, reimburses Unbudgeted expenditures incurred Contract completed. 75% of expenditures directly related to responding to Can submit for not covered with COVID-19 reimbursement at any other resources time FEMA - To be determined Assistance to food pantry In process CARES King County $31,965 Assistance to small businesses On June 191h, the City was notified that we INFORMATIONAL MEMO Page 7 are eligible to receive $31,965. On August 3, 2020, the Planning & Economic Development Committee authorized staff to accept the grant and use the funds for direct grants to very small businesses with a focus on the Tukwila International Blvd. area CESF — Dept. $49,000 Expenditures incurred directly Grant has been of Justice related to responding to COVID- awarded. Contract is Assistance 19 being processed EFSP City of Tukwila does Supplement existing emergency Forwarded to TCS Emergency not qualify for this food & shelter program and Tukwila Pantry Food & Shelter grant Prog HungerCorps Four VISTA HungerCorps will assist Contract awarded VISTA AmeriCorps Recreation staff to distribute food AmeriCorps HungerCorps as part of the mobile recreation students. Value: program 35,500 Port of Seattle $20,930 total grant Application included residential Recommended application component within digital media revisions approved by program to grow tourism, Planning & Economic development attraction, etc. Development Suggestion has been made to Committee on July 7, revise application to focus more 2020 on business recovery and direct $7,000 of the total $20,930 application to business recovery. Additional information can be found in item 1a on the July 6, 2020 Planning & Economic Development Committee meeting 25 INFORMATIONAL MEMO Page 8 Selected Capital Projects Funds Financial analysis regarding the impacts of the COVID-19 pandemic include ongoing review of certain capital projects funds including residential streets (fund 103), arterial streets (fund 104), and general government improvements (fund 303). The narrative below highlights planned capital projects along with decisions that have already been made and decision points for future meetings. The narrative is followed by financial statements reflecting activity through April 30, 2020 as well as projected activity through the end of the year. Residential Streets The most impactful issue in this fund relates to the 42nd Ave S and 53rd Ave S roadway projects. Both projects are completed and are awaiting final closeout and payments to contractors. The project budgets reflected in the financial statements are estimates at this time. Staff is working to determine full final costs and will update budgets when revised information is received. Until the City has updated information on these two projects, the fund will continue to show a negative fund balance. It should also be noted that the negative fund balance is only an estimate and will only end the year in a negative position if all identified expenditures are paid this year. The fund currently has a aositive cash balance and a aositive fund balance. Arterial Streets 42nd Ave S Bridge: The City Council authorized funding of up to $1 million ($320 thousand general fund, $680 thousand solid waste utility tax) for 30% design. There is a possibility that a federal infrastructure bill could include funding for "shovel ready" projects. In order for this project to have the best chance of receiving funding, the project would need to be at least 30% designed. The City expects to select a design consultant later this summer to get to 30% design. Since funding for the highest priority areas for overlay have been identified, staff is recommending that a decision on whether to fund this project or redirect funds elsewhere, be delayed until the true cost of design is understood. S 119th St Ped Bridge painting: Not funding this project will only delay the project, not cancel it. There is a limited window of opportunity to paint the bridge due to weather and fish cycles. Removing funding for this project will delay the project until at least 2021. Overlay. At the June 8, 2020 Committee of the Whole meeting, there was Council consensus to move forward with the recommendation from the Transportation & Infrastructure Committee to fund the two highest priority overlay projects. The budget has been adjusted to reflect the increase in budget. General Government Improvement Siding repair at TCC: Siding repair for TCC has been listed as a project as early as 2018. When the 2019-2020 budget was drafted, the expectation was that $200 thousand in siding and roofing repairs at TCC would occur. Last year, the city received bids for Phase I I I of the project; the lowest proposal being $116,589. At the July 13th Council of the Whole meeting, consensus existed to forward this item to the consent agenda at the following Regular meeting. Budget for this project is $120 thousand and funding currently exists in the general government improvement fund. Facilities Study. This project is also funded out of the general government improvement. Staff is reworking the scope of this project per comments received from City Council at the June 8, 2020 Committee of the Whole meeting. 26 INFORMATIONAL MEMO Page 9 City of Tukwila Residential Street Fund 103 - Revenue and Expenditures Year -to -Date as of June 30, 2020 2020 Variance Annual Revised (COVID) Actual Expected Total Over/(Under) % of COVID Budget Budget Year -To -Date + Through YE = Projected YE COV ID Budget Budget REVENUE: General Revenue Solid Waste/Recycling Utility Tax - - 40,651 - 40,651 40,651 - 40,651 - 40,651 40,651 - Total Intergovernmental Revenue - - Intergovernmental Revenue Indirect Federal - SRTS 3,454,000 3,454,000 - - (3,454,000) 0.0% StateGrant- Macadam 1,847,000 1,847,000 - - - (1,847,000) 0.0% State Entitlements - MVFT Cities 290.000 200.000 108.210 91.790 200.000 100.0% Total Intergovernmental Revenue Miscellaneous Revenue Charges for services Investment earnings Total Miscellaneous Revenue Transfers In Total Revenues EXPENDITURES: 46thAve Safe Routes to School Macadam Rd S Complete Street S 152nd St Safe Routes to School Traffic Calming/Residential Safety 53rd Ave S 42nd Ave S Phase III Interfund Loan Repayment Total Expenditures Change in fund balances Beginning Fund Balance Ending Fund Balance - 134,682 134,682 134,682 100.0% 20,000 - - - - - - 20,000 134,682 134,682 - 134,682 673.4% 100,000 100,000 - 100,000 100,000 100.0% 5,711,000 5,735,682 283,544 191,790 475,334 (5,260,349) 5 % 1,832,000 1,832,000 - - - (1,832,000) 0.0% 1,847,000 1,847,000 (1,847,000) 0.0% 1,622,000 1,622,000 - - - (1,622,000) 0.0% 400,000 50,000 22,929 27,071 50,000 100.0% - 399,000 147,106 251,894 399,000 100.0% 378,000 32,644 345,356 378,000 100.0% 336,932 1 252,500 84,433 336,932 1 100.0% 10,000 (729,250) (688,599) 40,651 94.4% 141,586 141,586 141,586 0 100.0% 27 INFORMATIONAL MEMO Page 10 City of Tukwila Arterial Street Fund 104 - Revenue and Expenditures Year -to -Date as of June 30, 2020 2020 Variance Annual Revised (COVID) Actual Expected Total Over/(Under) % of Annual Budget Budget Year -To -Date + Through YE = Projected YE Allocated Budget Budget REVENUE: General Revenue Parking Tax 470,000 300,000 143,728 156,272 300,000 0 64% WFTCities 137,000 100,000 67,065 32,935 100,000 0 73% Solid Waste Utility Tax 680,000 680,000 - 680,000 680,000 0 100% Real Estate Excise Taxes 500,000 500,000 139,859 360,141 500,000 0 100 % Total General Revenue 1,787,000 1,580,000 350,653 1,229,347 1,580,000 - 88.4% Charges for Sevices Park impact Fees 300,000 300,000 - 300,000 300,000 - 100.0% Traffic Impact Fees 213,000 213,000 242,202 157,798 400,000 187,000 187.8% Total Charges for Services 513,000 513,000 242,202 457,798 700,000 187,000 136.5% Intergovernmental Revenue Strander Grants 38,389,000 - - - 0 - 0.0% Federal-42nd Ave 1,280,000 - - - 0 - 0.0% Boeing Access Bridge Over Airport We 2,614,000 2,614,000 - 2,614,000 2,614,000 - 100.0% State Grant - West Valley Highw ay 2,694,000 2,694,000 63,955 2,630,045 2,694,000 - 100.0% Total Charges for Services 44,977,000 5,308,000 63,955 5,244,045 5,308,000 - 11.8% Miscellaneous Revenue Investment earnings 20,000 15,000 11,127 2,000 13,127 (1,873) 65.6% Contributions/Donations 30,000 30,000 2,700 - 2,700 (27,300) 9.0% Total Miscellaneous Revenue 50,000 45,000 13,827 15,827 (29,173) 31.7% Transfers In 1,000,000 - - - - - 0.0% Total Revenues 48,327,000 7,446,000 670,638 6,931,190 7,603,827 157,827 15.7% EXPENDITURES: Overhead (Salaries & Benefits) 485,382 485,382 136,593 267,653 404,245 (81,137) 83.3% Strander Blvd. Extension 38,389,000 622,362 2,795 622,362 625,157 (37,763,843) 1.6% BAR over Airport Way Seismic Retrofit 2,614,000 2,614,000 48,826 2,565,174 2,614,000 - 100.0% West Valley Highway 3,195,000 2,694,000 142,375 2,551,625 2,694,000 (501,000) 84.3% 42nd Ave S Bridge Replacement 1,600,000 1,000,000 1,363 998,637 1,000,000 (600,000) 62.5% S 144th St Bridge - Sidewalks 227,000 227,000 - - - (227,000) 0.0% S 119th St Ped Bridge 200,000 200,000 - 200,000 200,000 - 100.0% ADA Improvements 50,000 - - - - (50,000) 0.0% Wetland & Environmental Mitigation 40,000 40,000 15,677 24,323 40,000 - 100.0% Transportation Comp Bement Plan 400,000 200,000 - 200,000 200,000 (200,000) 50.0% Walk & Roll 75,000 - - - - (75,000) 0.0% Annual Overlay 1,400,000 510,000 149,441 360,559 510,000 (890,000) 36.4% Annual Bridge Inspections 135,000 269,000 2,412 266,588 269,000 134,000 199.3% Annual Traffic Signals 125,000 62,500 - 62,500 62,500 (62,500) 50.0% Transfer Park Impact Fees to Fund 301 - 1,009,000 - 1,009,000 1,009,000 1,009,000 - Other Misc. Capital Projects - - 15,865 13,795 29,660 TIB Channelization Study - - 11,205 13,795 25,000 25,000 - 2019 Traffic Calming/Res Safety - - 1,689 - 1,689 1,689 - TUC Pedestnar✓Bicycle Bridge - - 1,505 - 1,505 1,505 - S 196th/200th St Bridge - - 1,304 - 1,304 1,304 - S 144th St Phase II (42nd Ave S - TIB) - 161 - 161 161 - TotalExpenditures� 48,935,382 9,933,244 515,346 9,142,216 9,657,562 (39,277,820) 19.7% Change in fund balances (608,382) (2,487,244) 155,292 (2,211,026) (2,053,734) 433,510 337.6% Beginning Fund Balance 1,187,826 1,187,826 2,083,854 896,028 175.4% Ending Fund Balance 579,444 (1,299,418) 30,120 1,329,538 5.2% a INFORMATIONAL MEMO Page 11 City of Tukwila General Government Improvements Fund 303 - Revenue and Expenditures Year -to -Date as of June 30, 2020 2020 Variance Annual Revised(COVID) I Actual Expected Total Over/(Under) %ofCOVID Budget Budget Year -To -Date + Through YE = Projected YE COVID Budget Budget REVENUE: Miscellaneous Revenue Investment earnings 500 500 3,308 1,000 4,308 2,808 661.5% Total Miscellaneous Revenue 500 500 3,308 2,808 661.5% Transfers In 200,000 - - - - - 0.0% Total Revenues 200,500 500 3,308 EXPENDITURES: City Hall Siding/Roof Repair 50,000 50,000 - TCCSiding/Roof Repair 100,000 120,000 - 2020 Facilities Study 300,000 190,000 - Ivisc. Projects (including salaries & benefits) 208,015 - 31,684 Install No Parking Signs at 620016300 Bldg 2,026 6300 Bldg. Dry Fire Sprinkler System 29, 658 Total Expenditures 658,015 360,000 31,684 Change in fund balances (457,515) (359,500) Beginning Fund Balance 525,166 525,166 Ending Fund Balance 1 165,666 - - (50,000) 0.0% 120,000 120,000 - 100.0% 190,000 190,000 - 100.0% - 31,684 31,684 - Z026 29,658 310,000 341,684 (18,316) 4.8% (338,376) 21,124 94.1% 656.306 131.140 125.0% 29 30 COUNCIL AGENDA SYNOPSIS ---------------------------------- Initials Meeting Date Prepared b Mayor's review Council review 08/10/20 ]R 08/17/20 ]R ITEM INFORMATION ITEMNO. 3.C. STAFF SPONSOR: RYAN LARSON ORIGINAL AGENDA DATE: 08/10/20 AGENDA ITEM TITLE Interim Flood Plain Management Ordinance and Map Update CATEGORY ® Discussion Mtg Date 08110120 ❑ Motion Mtg Date ❑ Resolution Mtg Date ® Ordinance Mtg Date 08117120 ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑Council ❑Mayor ❑HR ❑DCD ❑Finance ❑Fire ❑TS ❑P&R ❑Police ®PIF ❑Court SPONSORS On May 15, 2020, the Federal Emergency Management Agency notified all Washington SUMMARY jurisdictions participating in the National Flood Insurance Program (NFIP) that our Flood Ordinance would require updates to comply with new federal and state regulations and to adopt revised Flood Insurance Rate Maps (FIRMS). Additional development and land clearing activities within the Special Flood Hazard Areas (SFHA) will now be regulated. Council is being asked to approve the Interim Flood Plain Management Ordinance. REVIEWED BY ® Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Comm. ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 08/03/2020 COMMITTEE CHAIR: C. DELOSTRINOS JOHNSON RECOMMENDATIONS: SPONSOR/ADMIN. Public Works Department COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 $0.00 Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 08/10/20 08/17/20 MTG. DATE ATTACHMENTS 08/10/20 Informational Memorandum dated 07/31/20 Draft Interim Flood Plain Ordinance (1 minor edit on Pg. 3 of Ordinance after 8/3 T&I) Minutes from Transportation and Infrastructure Committee meeting of 08/03/20 08/17/20 31 32 City of Tukwila Allan Ekberg, Mayor Public Works Department- Bari Ponnekanti, interim Director TO: Transportation and Infrastructure Committee FROM: Hari Ponnekanti, Interim Public Works Director BY: Ryan Larson, Program Manager CC: Mayor Ekberg DATE: July 31, 2020 SUBJECT: Interim Flood Plain Management Ordinance Update ISSUE Adopt an interim Flood Plain Management Ordinance to comply with FEMA requirements. BACKGROUND The City's Flood Plain Management Ordinance was passed in 1980 and updated in 1988 and 2002.On May 15, 2020, the Federal Emergency Management Agency (FEMA) notified Washington jurisdictions participating in the National Flood Insurance Program (NFIP) that our Flood Ordinance would require updates to comply with new federal and state regulations and to adopt revised Flood Insurance Rate Maps (FIRMs) by August 19, 2020. Failure to meet this deadline will result in Tukwila being temporarily suspended from the Flood Insurance program and residents will be unable to obtain flood insurance, receive a federally backed mortgage, and disaster assistance for properties within an identified flood hazard until the new regulations are adopted. Public Works used the State's model flood ordinance as a template to update the Flood Ordinance. The Transportation and Infrastructure Committee reviewed the changes at the July 20, 2020 meeting. This draft was sent to the Department of Ecology (DOE) and Department of Commerce for review and approval. The ordinance is undergoing Department of Commerce and SEPA review and a final determination will not be completed until after the required ordinance adoption date. DISCUSSION To meet the required August 19, 2020 adoption date, an interim Flood Plain Management Ordinance was drafted based on the draft ordinance currently under review. This interim ordinance will allow the required changes to go into effect by the FEMA deadline and will allow the permanent ordinance to complete the required review process. The interim ordinance adopts revised FIRMs that better reflect the actual Special Flood Hazard Areas (SFHA) within the City. The FIRM updates were done for all jurisdictions along the Green River. In addition, the interim ordinance also clarifies language concerning development within SFHA. Substantive updates include: • Revised definitions that more closely follow the definitions used by DOE • Revised code language changes to match language used by DOE • A provision to exclude storage or processing of hazardous materials • A provision to include filling and grading as activities requiring a flood permit • A provision limiting uses of areas constructed below the lowest floor to parking and storage FISCAL IMPACT Additional development and land clearing activities within the SFHA will now be regulated. This will require additional staff time to review and approve Flood Permits. RECOMMENDATION Council is being asked to approve the interim Flood Plain Management Ordinance and consider this item at the August 10, 2020 Committee of the Whole meeting and subsequent August 17, 2020 Regular Meeting. Attachments: Interim Flood Plain Management Ordinance https://tukwilawa.sharepoint.com/sites/publicworks/engineering/PW Drop Box/01 TIC Agenda/Agenda Items/TIC 08-03-2020/2. Interim Flood Plain Management Ordinace/Info Memo_Floodplain Management Ordinance V2.docx 33 34 NOTE: Shaded text on Page 3 shows a correction made to the date in Section 3 (compared to 8/3/20 Transportation and Infrastructure Committee agenda packet). AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING ORDINANCE NO. 2038, AS CODIFIED AS CHAPTER 16.52, "FLOOD PLAIN MANAGEMENT;" REENACTING TMC CHAPTER 16.52 TO PROVIDE FOR INTERIM FLOOD PLAIN MANAGEMENT REGULATIONS AND POLICIES AS REQUIRED OF JURISDICTIONS PARTICIPATING IN THE NATIONAL FLOOD INSURANCE PROGRAM; ESTABLISHING SIX MONTHS AS THE EFFECTIVE PERIOD FOR THE INTERIM ORDINANCE; ADOPTING FINDINGS; PROVIDING FOR SEVERABILITY; DECLARING AN EMERGENCY AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, flood hazard areas in Tukwila are subject to periodic inundation which may result in loss of life or property, may create health or safety hazards, may disrupt commerce or governmental services, may cause extraordinary public expenditures for flood protection and relief, or might impair the tax base, all of which adversely affect the public health, safety, and general welfare; and WHEREAS, these flood losses may be caused by the cumulative effect of obstructions in areas of special flood hazards that increase flood heights and velocities, and damage uses in other areas when inadequately anchored; and WHEREAS, uses that are inadequately flood -proofed, elevated or otherwise protected from flood damage can contribute to losses due to flooding; and WHEREAS, the Legislature of the State of Washington delegated the responsibility to local governmental units of adopting regulations designed to promote the public health, safety, and general welfare of its citizenry; and WHEREAS, in Title 86 of the Revised Code of Washington, the Legislature of the State of Washington authorized local governmental agencies to regulate use and development of flood hazard areas within their jurisdictions in order to reduce such hazards; and W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 1 of 23 35 WHEREAS, on July 27, 2020, the Tukwila City Council, following adequate public notice, held a public hearing to receive testimony on the proposed flood ordinance; and WHEREAS, to remain eligible for the National Flood Insurance Program (NFIP), the City of Tukwila is required to adopt updated regulations that meet or exceed the requirements of Section 60.3, Chapter 1, Title 44 of the Code of Federal Regulations (CFR) by August 19, 2020; and WHEREAS, if Tukwila is suspended from the NFIP, residents will be unable to purchase flood insurance, renew existing flood insurance policies, or obtain Federal mortgage insurance or loan guarantees for properties within an identified flood hazard area, and federal grants, loans, and disaster assistance will not be available to properties within an identified flood hazard area; and WHEREAS, on May 26, 2020, the Federal Emergency Management Agency (FEMA) confirmed in writing that the adoption of interim controls is an acceptable approach to maintain eligibility in the NFIP until such time permanent regulations are adopted, provided that such permanent regulations are adopted within six months of the effective date of this ordinance; and WHEREAS, a delay in the adoption of the final regulations will provide sufficient time to obtain a Washington State Environmental Policy Act (SEPA) determination and approval from the Department of Commerce on the final regulations; and WHEREAS, the City Council may adopt interim regulations for a period of up to six months so long as the City Council holds a public hearing on the interim regulations as required by RCW 35A.63.220 within 60 days of adoption of the interim regulations; and WHEREAS, pursuant to Washington Administrative Code (WAC) 197-11-880, the adoption of this interim ordinance is exempt from the requirements of a threshold determination under the Washington State Environmental Policy Act (SEPA); and WHEREAS, the City Council finds that an emergency exists and this interim ordinance is necessary for the immediate protection of public health, public safety, public property, and public peace; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Recitals Incorporated. The Recitals set forth above are hereby adopted and incorporated as Findings of Fact and/or Conclusions of Law of the City Council pursuant to the requirements of RCW 35A.63.220. Section 2. Repealer. Ordinance No. 2038, as codified as Tukwila Municipal Code (TMC) Chapter 16.52, "Flood Plain Management," is hereby repealed in its entirety and is replaced with interim controls as provided for in Sections 4 through 19 of this ordinance. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 2 of 23 36 Section 3. Duration of Interim Controls. This interim ordinance shall be in effect for six months, commencing on August 19, 2020 and ending on February 19, 242-0 2021, unless extended or unless a final ordinance is adopted amending the Tukwila Municipal Code and rescinding the interim controls before February 19, 2021. Section 4. TMC Chapter 16.52 Reenacted. TMC Chapter 16.52 is hereby re- enacted to read as follows: CHAPTER 16.52 FLOOD PLAIN MANAGEMENT Sections: 16.52.010 Auth Statutory Authorization 16.52.020 Purpose 16.52.030 Definitions 16.52.040 Applicability 16.52.050 Basis for Establishing the Areas of Special Flood Hazard Areas 16.52.060 Interpretation 16.52.070 Warning and Disclaimer of Liability 16.52.080 Administration 16.52.090 Permits 16.52.100 Standards 16.52.110 Floodways 16.52.120 Critical Facility 16.52.125 Compliance 16.52.130 Penalties 16.52.140 Abrogation and Greater Restrictions Section 5. TMC Section 16.52.010 is hereby reenacted to read as follows: 16.52.010 Authority y Statutory Authorization The Legislature of the State of Washington delegated the responsibility to the City of Tukwila to adopt regulations designed to promote the public health, safety, and general welfare of its citizenry. Section 6. TMC Section 16.52.020 is hereby reenacted to read as follows: 16.52.020 Purpose This chapter aims to promote the public health, safety, and general welfare, and to minimize public and private losses due to flood conditions in specific areas, by provisions designed to: W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 3 of 23 37 1. Protect human life and health; 2. Minimize expenditure of public money and costly flood control projects; 3. Minimize the need for rescue and relief efforts associated with flooding and generally undertaken at the expense of the general public; 4. Minimize prolonged business interruptions; 5. Minimize damage to public facilities and utilities such as water and gas mains, electric, telephone and sewer lines, streets, and bridges located in areas of special flood hazard; 6. Help maintain a stable tax base by providing for the sound use and development of areas of special flood hazard so as to minimize future flood blight areas; 7. Ensure that potential buyers are notified that property is in an area of special flood hazard; aP4 8. Ensure that those who occupy the areas of special flood hazard assume responsibility for their actions; and. 9. Participate in and maintain eligibility for flood insurance and disaster relief. Section 7. TMC Section 16.52.030 is hereby reenacted to read as follows: 16.52.030 Definitions Unless specifically defined below, words or phrases used in this chapter shall be interpreted to give them the meaning they have in common usage and to give this chapter its most reasonable application. 1. Alteration of watercourse: Any action that will change the location of the channel occupied by water within the banks of any portion of a riverine waterbody. 42. Appeal: ,,,ETA request for a review of the interpretation of any provision of this chapter or a request for a variance. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 4 of 23 3. Area of shallow flooding: A designated zone AO, AH, AR/AO or AR/AH (or VO) on a community's Flood Insurance Rate Map (FIRM) with a one percent or greater annual chance of flooding to an average depth of one to three feet where a clearly defined channel does not exist, where the path of flooding is unpredictable, and where velocity flow may be evident. Such flooding is characterized by ponding or sheet flow. Also referred to as the sheet flow area. 4. Area of special flood hazard: The land in the floodDlain within a community subject to a 1 percent or greater chance of flooding in any given year. It is shown on the Flood Insurance Rate Map (FIRM) as zone A, AO, AH, Al-30, AE, A99, AR W. VO. V1-30. VE). "Saecial flood hazard area" is svnonvmous in meanina with the phrase "area of special flood hazard". 5. ASCE 24: The most recently published version of ASCE 24, "Flood Resistant Design and Construction", published by the American Society of Civil Engineers. 56. Base flood:meaRTThe flood having a 1 % chance of being equaled or exceeded in any given year; k4-4s—also referred to as the "100-year flood"). 4s desigRatiOR OR maps always ORG' irdes the letter A. 7. Base Flood Elevation (BFE): The elevation to which floodwater is anticipated to rise during the base flood. 68. Basement: n4eanTAny area of the building having its floor sub -grade (below ground level) on all sides. 9. Building: See "Structure." 10. Buildina Code: The current editions of the buildina codes and amendments adopted by Washington State and amended by the City of Tukwila. 11. Breakaway wall: A wall that is not part of the structural support of the building and is intended through its design and construction to collapse under specific lateral loading forces, without causing damage to the elevated portion of the building or supporting foundation system. 712. Critical facility_ iearTA facility for which even a slight chance of flooding might be too great. Critical facilities include, but are not limited to, schools; nursing homes; hospitals; police, fire and emergency response installations; and installations `"'hamthat produce, use, or store hazardous materials or hazardous waste. 613. Development: mea+�s Any man-made change to improved or unimproved real estate, including, but not limited to, buildings or other structures, mining, dredging, filling, grading, paving, excavation or drilling operations armor storage of equipment or materials located within the area of special flood hazard. 914. Director: meaRs The Director of Public Works or his -designee. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 5 of 23 39 15. Elevation Certificate: An administrative tool of the National Flood Insurance Program (NFIP) that can be used to provide elevation information, to determine the proper insurance premium rate and to support a request for a Letter of Map Amendment (LOMA) or Letter of Map Revision based on fill (LOMR-F). 44-16. Elevated building: 4;4e aRsFor insurance purposes, a non -basement building ` NGh—that has its lowest elevated floor raised above ground level by foundation walls, shear walls, posts, piers, pilings, or columns. 17. Essential facility: This term has the same meaning as "Essential Facility" defined in ASCE 24. Table 1-1 in ASCE 24-14 further identifies buildina occuaancies that are essential facilities. _.WE .•www 18. Flood or Flooding:rneans (a) A general and temporary condition of partial or complete inundation of normally dry land areas from: a-M The overflow of inland or tidal waters., aad/er b-.IQ The unusual and rapid accumulation or runoff of surface waters from any source...; and/or (3) Mudslides (i.e., mudflows), which are proximately caused by flooding as defined in subparagraph (a)(2) of this definition and are akin to a river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water and deposited alona the path of the current. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 6 of 23 M (b) The collapse or subsidence of land along the shore of a lake or other body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels or suddenly caused by an unusually high water level in a natural body of water, accompanied by a severe storm, or by an unanticipated force of nature, such as flash flood or an abnormal tidal surge, or by some similarlv unusual and unforeseeable event that results in floodina as defined in subparagraph (a)(1) of this definition. 19. Flood elevation study: An examination, evaluation, and determination of flood hazards and, if appropriate, corresponding water surface elevations, or an examination. evaluation and determination of mudslide (i.e.. mudflow) and/or flood - related erosion hazards. Also known as a Flood Insurance Study (FIS). 20. Flood Insurance Rate Map (FIRM):„ Bans The official map of a community on which the Federal Insurance Administrator has delineated both the ass of -special flood hazard areas and the risk premium zones applicable to the community. A FIRM that has been made available digitally is called a Digital Flood Insurance Rate Map (DFIRM). 21. Floodalain or flood -prone area: Any land area susceptible to being inundated by water from any source. See "Flood or Flo-oding.,, 22. Floodalain Administrator: The community official desianated by title to administer and enforce the floodplain management regulations. 23. Floodalain manaaement reaulations: Zonina ordinances. subdivision regulations, building codes, health regulations, special purpose ordinances (such as floodplain ordinance, grading ordinance and erosion control ordinance) and other application of police power. The term describes such state or local regulations, in any combination thereof. that Drovide standards for the Duroose of flood damaae Drevention and reduction. 24. Flood oroofina: Anv combination of structural and nonstructural additions, changes, or adjustments to structures that reduce or eliminate risk of flood damage to real estate or improved real property, water and sanitary facilities, structures, and their contents. Flood -proofed structures are those that have the structural integrity and design to be impervious to floodwater below the Base Flood Elevation. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 7 of 23 41 2325. Floodway_ means The channel of a river or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively increasing the water surface elevation more than one feet a designated height. Also referred to as "Regulatory Floodway." 26. Functionally dependent use: A use that cannot perform its intended unless it is located or carried out in close proximity to water. The term includes only docking facilities, port facilities that are necessary for the loading and unloading of cargo or passengers, and ship building and ship repair facilities, and does not include long-term storage or related manufacturing facilities. 27. Highest adjacent grade: The highest natural elevation of the ground surface prior to construction next to the proposed walls of a structure. 28. Historic structure: Any structure that is: a. Listed individually in the National Register of Historic Places (a listing maintained by the Department of the Interior) or preliminarily determined by the Secretary of the Interior as meeting the requirements for individual listing on the National Register; b. Certified or preliminarily determined by the Secretary of the Interior as contributing to the historical significance of a registered historic district or a district preliminarily determined by the Secretary to qualify as a registered historic district; c. Individually listed on a state inventory of historic places in states with historic preservation programs that have been approved by the Secretary of the Interior; or d. Individually listed on a local inventory of historic places in communities with historic preservation programs that have been certified either: (1) By an approved state program as determined by the Secretary of the Interior, or (2) Directly by the Secretary of the Interior in states without approved programs. 2429. Lowest floor_:,,,eaRs The lowest floor of the lowest enclosed area (including basement). lf- An unfinished or flood -resistant enclosure, 0C-used -usable solely for veh+Ele parking of vehicles, building access, or storage, Of�;TenGlesu,e in an area other than a basement area, and Of this eRG'�uFe is not considered a building's lowest floor, provided that such enclosure On an -ro- ethos than a basement is not built so that as to render the structures in violation of the applicable non -elevation design requirements of this chapter (i.e. provided there are adequate flood ventilation openings) ' tewest f lee-r. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 8 of 23 42 2530. Manufactured home: A structure, transportable in one or more sections, that is built on a permanent chassis and is designed for use with or without a permanent foundation when attached to the required utilities. The term "manufactured home" does not include a "recreational vehicle." 2631. Manufactured home park or subdivision: mans parcel (or contiguous parcels) of land divided into two or more manufactured home lots for rent or sale. 32. Mean sea level: For purposes of the National Flood Insurance Program, the vertical datum to which Base Flood Elevations shown on a community's Flood Insurance Rate Map are referenced. 27-33. New construction_: For the purposes of determining insurance rates, structures for which the "start of construction" commenced on or after 44&1-, the effective date of Ti ikwila's eriniRal fl. edplain maRagemen+ reg ilatiens an initial Flood Insurance Rate Map or after December 31, 1974, whichever is later, and includes any subsequent improvements to such structures. For floodplain management purposes, "new construction" means structures for which the "start of construction" commenced on or after the effective date of a floodplain management regulation adopted by a communitv and includes anv subseauent improvements to such structures. .11 WIN 2-934. "NFIP" means National Flood Insurance Program. 35. One -hundred -year flood or 100-year flood: See "Base flood." 36. Reasonably safe from flooding: Development that is designed and built to be safe from flooding based on consideration of current flood elevation studies, historical data, high water marks and other reliable data known to the community. In unnumbered "A" zones where flood elevation information is not available and cannot be obtained by practicable means, "reasonably safe from flooding" means the lowest floor is at least two feet above the Highest Adjacent Grade. W37. Recreational vehicle: A vehicle: a. Built on a single chassis; b. 400 square feet or less when measured at the largest horizontal projections- c. Designed to be self-propelled or permanently towable by a light -duty truck; and d. Designed primarily not for use as a permanent dwelling but as temporary living quarters for recreational, camping, travel, or seasonal use. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 9 of 23 43 me--e M 1 MWAR 1 --- -32-38. "Special Flood Hazard Area S( FHA)"_„Tea ;s The land in the flood plain subject to a 1 % or greater chance of flooding in any given year. It is also referred to as the 100-year flood elevation or the base flood elevation. These areas are designated on Flood Insurance Rate Maps (FIRMs) using the letters A or V. Special flood hazard areas include flood -prone areas designa ted by the City. 6439. Start of construction_: Fnea ;S Includes substantial improvement and means the date the building permit was issued, provided the actual start of construction, repair, reconstruction, rehabilitation, addition, placement, or other improvement eGGUrred was within 180 days from the date of the permit date. The actual start means either the first placement of permanent construction of a structure on a site, such as the pouring of slab or footings, the installation of piles, the construction of columns, or any work beyond the stage of excavation; or the placement of a manufactured home on a foundation. Permanent construction does not include land preparation, such as clearing, grading, and filling; nor does it include the installation of streets and/or walkways; nor does it include excavation for a basement, footings, piers, or foundations or the erection of temporary forms; nor does it include the installation on the property of accessory buildings, such as garages or sheds not occupied as dwelling units or not part of the main structure. For a substantial improvement, the actual start of construction means the first alteration of any wall, ceiling, floor, or other structural part of a building, whether or not that alteration affects the external dimensions of the building. -3,540. Structure: means For floodplain management purposes, a walled and roofed building, including a gas or liquid storage tank., that is principally above ground as well as a manufactured home. 3641. Substantial Damage:n,ea„TDamage of any origin sustained by a structure whereby the cost of restoring the structure to its before -damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred. 3742. Substantial improvement: means Any repair, reconstruction, rehabilitation, addition, or other improvement of a structure, the cost of which equals or exceeds 50 percent of the assessed market value of the structure before the "start of construction" of the improvement. This term includes structures that have incurred "substantial damaae." reaardless of the actual repair work performed. The term does not. however. include either: W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 10 of 23 {tea. Before the erTepair is staFted, or Any project for improvement of a structure to G^m^'Y Wet correct previously identified existing violations of state or local health, sanitary, or safety code specifications that have been identified by the local code enforcement official and that are the minimum which is necessary to assure safe living conditions; or {2-}b. BefeFe damage -ocGUTr dif GtFUetUFe ism iRg Fes-teFed Any alteration of a "historic structure," StrUEtUre listed en the National —Registry of isto; iG PaGesor a State 'RveRteFY of hi6tsr aEesrprovided that the alteration will not preclude the structure's continued designation as a "historic structure." 43. Variance: A grant of relief by a community from the terms of a floodplain management regulation. 44. Violation: The failure of a structure or other development to be ful compliant with the community's floodplain management regulations. A structure or other development without the elevation certificate, other certifications, or other evidence of compliance required in this chapter is presumed to be in violation until such time as that documentation is a arant of relief by a community from the terms of a floodplain management regulation. 45. Water surface elevation: The height, in relation to the vertical datum utilized in the applicable flood insurance study of floods of various magnitudes and frequencies in the floodplains of coastal or riverine areas. 46. Water Dependent: A structure for commerce or industry that cannot exist in any other location and is dependent on the water by reason of the intrinsic nature of its operations. Section 8. TMC Section 16.52.040 is hereby reenacted to read as follows: 16.52.040 Applicability This chapter applies to all special flood hazard areas within the City of Tukwila jurisdiction. Section 9. TMC Section 16.52.050 is hereby reenacted to read as follows: 16.52.050 Basis for Establishing the Areas of Special Flood Hazard Area A. The basis 4eFspecial flood hazard areas identified by the Federal Insurance Administrator+ea is --in a scientific and engineering report entitled "The Flood Insurance W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 11 of 23 45 Study FIS for King County, Washington and Incorporated Areas" dated DeGer ber 2404—August 19, 2020, and any revisions thereto, with aR accompanying Flood Insurance Rate Maps (FIRMs) dated August 19, 2020, and any revisions thereto, are hereby adopted by reference and declared to be a part of this chapter. The €food Insuran j-EIS and the FIRMs are on file at 6300 Southcenter Boulevard, Suite 100. B. The best available information for flood hazard area identification as outlined in TMC Section 16.52.080.BC-2 shall be the basis for regulation until a new FIRM is issued which incorporates this data. Section 10. TMC Section 16.52.060 is hereby reenacted to read as follows: 16.52.060 Interpretation In the interpretation and application of TMC Chapter 16.42, all provisions shall be: 1. Considered as minimum requirements; 2. Liberally construed in favor of the governing body; and 3. Deemed neither to limit nor repeal any other powers granted under State statutes. Section 11. TMC Section 16.52.070 is hereby reenacted to read as follows: 16.52.070 Warning and Disclaimer of Liability The degree of flood protection required by TMC Chapter 16.52 is considered reasonable for regulatory purposes and is based on scientific and engineering considerations. Larger floods can and will occur on rare occasions. Flood heights may be increased by man-made or natural causes. This chapter does not imply that land outside the areas of special flood hazards or uses permitted within such areas will be free from flooding or flood damages. This chapter shall not create liability on the part of the City of Tukwila, any officer or employee thereof, or the Federal Insurance Administration for any flood damages that result from reliance on this chapter or any administrative decision lawfully made hereunder. Section 12. TMC Section 16.52.080 is hereby reenacted to read as follows: 16.52.080 Administration A. The Public Works Director is hereby appointed to administer -and, implement, and enforce this ordinance by granting or denying development permits appli tions in accordance with its provisions. The Floodplain Administrator may delegate authority to implement these Drovisions. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 12 of 23 B. The Director may: 1. Restrict or prohibit GesWhiGh Fnight GFeate a �geTdevelopment that is dangerous to health, safety, and property due to water or erosion hazards, or which mightRGFease—result in damaging increases in erosion, or in flood heights or fteed velocities; 2. Require that uses development vulnerable to floods, iRdudiRg fa^ilitioc cor.,inn ci i^h uses, be ^nnStri Gted to protect be protected against flood damage at the time of initial construction; 3. Control the alteration of sz;rfa^water features SUGh as natural floodplains, stream channels, and natural protective barriersL +hn} retain which help accommodate or channel flood waters; 4. Control filling, grading, dredging and other development which may increase flood damage; and 5. Prevent or regulate the construction of flood barriers that would unnaturally divert floodwaters or that might increase flood hazards in other areas. 9C. The Director's duties shall include, but shall not be limited to: 1. Permit Review. a. Review all development permits to determine that the permit requirements of this chapter have be en satisfied. b. Review all development permits to determine that all necessary permits have been obtained from those Federal, State, or local governmental agencies from which prior approval is required. c. The site is reasonably safe from flooding. Ed. Review all development permits to determine if the proposed development is located in the floodway, and ensure that the encroachment provisions of TMC Section 16.52.110, "Floodwaysi' are met. Area. e. Notify FEMA when annexations occur in the Special Flood Hazard 2. Special Flood Hazard Area. a. When base flood elevation data has not been provided in A zones, the Director shall obtain, review, and reasonably utilize any base flood elevation and floodway data available from a Federal, State or other source, in order to administer TMC Chapter 16.52. b. Where floodelevationdata is not available either through the Fleed 'Nance may FIS, FIRM, or from another authoritative source (TMC Section 16.52.080), the DiirreEtershall review applications for building permits floodplain development shall be reviewed to assure that proposed construction will be reasonably safe from flooding. The test of reasonableness is a local judgment and includes use of historical data, high water marks, photographs of past flooding, etc., where available. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 13 of 23 47 Failure to elevate at least two feet above the highest adjacent grade in these zones may result in higher insurance rates. c. Where needed, the Director shall interpret exact location of the boundaries of the areas of special flood hazards - for example, where there appears to be a conflict between a mapped boundary and actual field conditions. The Director shall provide the person contesting the boundary location a reasonable opportunity to appeal the interpretation. Such appeals shall be granted consistent with the standards of Section 60.6 of the Rules and Regulations of the National Flood Insurance Program (44 CFR 59-76). 3. Changes to Special Flood Hazard Area. a. If a project will alter the Base Flood Elevation (BFE) or boundaries of the Special Flood Hazard Area (SFHA), then the project proponent shall provide the community with engineering documentation and analysis regarding the proposed change. If the change to the BFE or boundaries of the SFHA would normally require a Letter of Map Change, then the project proponent shall initiate, and receive approval of, a Conditional Letter of Map Revision (CLOMR) prior to approval of the development permit. The project shall be constructed in a manner consistent with the approved CLOMR. b. If a CLOMR application is made, the project proponent shall also supply the full CLOMR documentation package to the Floodplain Administrator to be attached to the floodplain development permit, including all required property owner notifications. 34. Watercourse Alteration. a. Notify adjacent communities and the Department of Ecology (DOE) prior to any alteration or relocation of a watercourse, and submit evidence of such notification to the Federal Insurance Administration through appropriate notification means. (44 CFR 60.3(b)(6)) b. Require that maintenance be provided within the altered or relocated portion of said watercourse so that the flood carrying capacity is not diminished. 45. Information an gemenf to be Obtained and Maintained. a. Where base flood elevation data is provided through the Flood Insurance Sturm, FIS, FIRM, or required as in TMC Section 16.52.080.BC.2, obtain and maintain a record of the actual as -built elevation (in relation to mean sea level) of the lowest floor (including basement) of all new or substantially improved structures, and rwhether or not the structure contains a basement. b. For all new or substantially improved flood -proofed nonresidential structures where base flood elevation data is provided through the Fleed Inca iranno Study-,FIS, FIRM, or as required in TMC Section 16.52.080,43C.2: (1) Obtain and maintain a record of the elevation (in relation to mean sea level) to which the structure was flood -proofed -,and. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 14 of 23 16.52.090, D.3. issuance. (2) Maintain the flood -proofing certifications required in TMC Section c. Certification required by TMC Section 16.52.110.A.1. d. Records of all variance actions. includina iustification for their e. Improvement and damage calculations. ef. Maintain for public inspection all records pertaining to the provisions of this ordinance. Section 13. TMC Section 16.52.090 is hereby reenacted to read as follows: 16.52.090 Permits A. A Flood Zone Control Permit (FZCP) shall be obtained before construction or development begins within any area of special flood hazard established in TMC Section 16.52.050. The permit shall be for all structures including manufactured homes, as set forth in the "Definitions," and for all development including clearing, filling, grading, and other activities. also as set forth in the "Definitions." B. Application for an FZCP shall be submitted with the project application for a clearing and grading permit, shoreline permit, plat or subdivision permit, or a building permit, whichever comes first. C. An FZCP is a Type 1 permit processed pursuant to TMC Section 18.108.010. D. Application for an FZCP shall be made on forms furnished by the City and shall meet the City's standards for plan submittals. The applicant must provide the following information: 1. Elevation in relation to mean sea level, of the lowest floor(including basement) of all structures recorded on a current elevation certificate with Section B completed by the Floodplain Administrator; 2. Elevation in relation to mean sea level to which any structure has been flood -proofed; 3. Where a structure is to be flood -proofed, certification by a registered professional engineer or architect that the flood -proofing methods for any nonresidential structure meet the -flood -proofing criteria in TMC Section 16.52.100 B.2;-a-nd 4. Description of the extent to which a watercourse will be altered or relocated as a result of proposed development..-i 5. Where development is proposed in a floodway, an engineering analysis determination of no rise of the Base Flood Elevation, and 6. Any other such information that may be reasonably required by the Floodplain Administrator in order to review the application. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 15 of 23 i • Section 14. TMC Section 16.52.100 is hereby reenacted to read as follows: 16.52.100 Standards A. General Standards. In all areas of special flood hazards, the following standards are required: 1. Elevation. Where flood elevation data is not available, either through the FIRM or from another authoritative source, all new construction and substantial improvements shall be elevated at least two feet above the highest adjacent grade. 2. Anchoring. a. All new construction and substantial improvements, including those related to manufactured homes, shall be anchored to prevent flotation, collapse, or lateral movement of the structure resulting from hydrodynamic and hydrostatic loads, including the effects of buoyancy. b. All manufactured homes mmus� wn shall be anchored to prevent flotation, collapse, or lateral movement, and shall be installed using methods and practices that minimize flood damage. Anchoring methods may include, but are not limited to, use of over -the -top or frame ties to ground anchors (TefeTenGe�'s "M ac e Home IRstallatiOR in Flood Hazard Areas" guidebeekBTaddi al t8Ghniq es-) 3. Construction Materials and Methods. a. All new construction and substantial improvements shall be constructed with materials and utility equipment resistant to flood damage. b. All new construction and substantial improvements shall be constructed using methods and practices that minimize flood damage. c. All new construction and substantial improvements on slopes shall have drainage paths to guide floodwaters around and away from proposed structures. d. Electrical, heating, ventilation, plumbing and air-conditioning equipment and other service facilities shall be designed and/or otherwise elevated or located so as to prevent water from entering or accumulating within the components during conditions of flooding. 4. Storage of Materials and Equipment. a. The storage or processing of materials that could be injurious to human, animal, or plant life if released due to damage from flooding are prohibited in special flood hazard areas. b. Storage of other material or equipment may be allowed if not subject to damage by floods and if firmly anchored to prevent flotation, or if readily removable from the area within the time available after flood warnina. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 16 of 23 50 45. Utilities. a. All new and replacement water supply systems shall be designed to minimize or eliminate infiltration of flood waters into the systems; b. A proposed water well shall be approved by Department of Ecology (\^%?3-1�) and be located on high ground that is not in the floodway; c. New and replacement sanitary sewage systems shall be designed to minimize or eliminate infiltration of flood waters into the systems and discharges from the systems into flood waters; and d. Onsite waste disposal systems shall be located to avoid impairment to them or contamination from them during flooding. 56. Subdivisions Proposals and Development. All subdivisions, as well as new development shall: a. All sub livicirin sals shall -bBe consistent with the need to minimize flood damage; b. Alll subdo.,icir,n nr.,n^;^ls shall RHave public utilities and facilities - such as sewer, gas, electrical and water systems - located and constructed to minimize or eliminate flood damage; c All c•ubdiyisi^n nr^n^cals shall hHave adequate drainage provided, to reduce exposure to flood damage; and, ,, d. Where base flleed eleyation--a'crl-+ a has net been provided er is not available fr^m aRethara +t+ative-SOI irn, i�haIl be genneFatccrivTWhere subdivision proposals and other proposed developments t#at-contain at leas greater than 50 lots or 5 acres (whichever is �s-the lesser), base flood elevation data shall be included as part of the application. B. Specific Standards. In all areas of special flood hazards where Base Flood Elevation data has been provided as set forth in TMC Section 16.52.050 or TMC Section 16.52.080.C.2, the following provisions are required: 1. Residential Construction. a. New construction and substantial improvement of any residential structure shall have the lowest floor, including basement, elevated one foot or more above the Base Flood Elevation. Mechanical equipment and utilities shall be waterproofed or elevated one or more feet above the Base Flood Elevation. b. Fully enclosed areas below the lowest floor that are subject to flooding are prohibited, or shall be designed to automatically equalize hydrostatic flood forces on exterior walls by allowing for the entry and exit of floodwaters. Designs for meeting this requirement must either be certified by a registered professional engineer or architect, and must meet or exceed the following minimum criteria: (1) A minimum of two openings having a total net area of not less than one square inch for every square foot of enclosed area subject to flooding shall be provided. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 17 of 23 51 (2) The bottom of all openings shall be no higher than one foot above grade. (3) Openings may be equipped with screens, louvers, or other coverings or devices provided that they permit the automatic entry and exit of floodwaters. 2. Nonresidential Construction: a. New construction and substantial improvement of any commercial, industrial or other nonresidential structure shall either have the lowest floor, including basement, elevated one foot or more above the base flood elevation, or elevated as required by ASCE 24, whichever is greater, or together with attendant utility and sanitary facilities, shall: (1) Be dry flood -proofed so that below one foot or more above the base flood level the structure is watertight with walls substantially impermeable to the passage of water or dry flood -proofed to the elevation required by ASCE 24, whichever is greater; (2) Have structural components capable of resisting hydrostatic and hydrodynamic loads and effects of buoyancy; and (3) Be certified by a registered professional engineer or architect that the design and methods of construction are in accordance with accepted standards of practice for meeting provisions of this subsection based onthat engineer's or arGhiteGt'c their development and/or review of the structural design, specifications and plans. Such certifications shall be provided to the official as set forth in TMC Section 16.52.080.C.5. b. Nonresidential structures that are elevated, not flood -proofed, must meet the same standards for space below the lowest floor as described in TMC Section 16.52.100, B.1.b., for residential construction. c. The City shall notify applicants who propose to flood -proof nonresidential buildings that flood insurance premiums will be based on rates that are one foot below the flood -proofed level (e.g. a building flood -proofed to the base flood level will be rated as one foot below). Flood -proofing the building an additional foot will reduce insurance premiums significantly. 3. Manufactured Homes: a. All manufactured homes to be placed or substantially improved on sites, outside of a manufactured home park or subdivision, in a new manufactured home park or subdivision, in an expansion to an existing manufactured home park or subdivision, or in an existing manufactured home park or subdivision on which a manufactured home has incurred "substantial damage" as the result of a flood, shall be elevated on a permanent foundation such that the lowest floor of the manufactured home is elevated one foot or more above the base flood elevation and be securely anchored to an adequately -designed foundation system to resist flotation, collapse and lateral movement. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 18 of 23 52 b. Manufactured homes to be placed or substantially improved on sites in an existing manufactured home park or subdivision that are not subject to the above manufactured home provisions shall be elevated so that either: (1) The lowest floor of the manufactured home is elevated one foot or more above the base flood elevation, or (2) The manufactured home chassis is supported by reinforced piers or other foundation elements of at least equivalent strength that are no less than 36 inches in height above grade and be securely anchored to an adequately designed foundation system to resist flotation, collapse and lateral movement. 4. Recreational Vehicles. Recreational vehicles placed on sites are required to either: a. Be on the site for fewer than 180 consecutive days; b. Be fully licensed and ready for highway use, on its wheels or jacking system, be attached to the site only by quick disconnect type utilities and security devices, and have no permanently attached additions; or c. Meet the requirements for manufactured homes, including the elevation and anchoring requirements for manufactured homes. 5. Enclosed Areas Below the Lowest Floor. If buildings or manufactured homes are constructed or substantially improved with fully -enclosed areas below the lowest floor, the areas shall be used solely for parking of vehicles, building access, or storage. C. Green River. In addition to the general and specific standards in the section, the following standards apply to all areas adjacent to the Green River: 1. Construction/Reconstruction of Dikes/Levees: As part of the flood -proofing for developments adjacent to the Green River through Tukwila, construction or reconstruction of the dike/levee system, in accordance with dike/levee plans and engineering studies, and in accordance with the Green River Management Agreement (AG No. 85-043), will be required as part of the plan submittal. 2. If dike/levee improvements are not required, and the natural riverbank is allowed as bank protection, then a riverbank stability analysis shall be provided to the Public Works Department for review as part of the plan submittal. 3. Dedication of levee/dike/riverbank access construction and maintenance easements on all properties adjacent to the Green River shall, as part of their development, dedicate construction and maintenance easements for access and maintenance of existing or future dikes/levees/riverbanks along the Green River as part of their plan submittal. These easements shall be provided in such a manner so that immediate access is allowed from other public rights -of -way for maintenance and construction of dikes/levees. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 19 of 23 53 Section 15. TMC Section 16.52.110 is hereby reenacted to read as follows: 16.52.110 Floodways A. F'^^r� edways elLocated within areas of special flood hazard areas established in TMC Section 16.52.050 are areas designated as floodways. Fleedwa+ers ,A„+hin Since the floodways are e, ., his an extremely hazardous area due to the high floel^^;+.es velocity These i.ya+ere of floodwaters that can carry debris and n^+en+ial nr^ien+il and have a high potential for eresign increase erosion potential, the following provisions apply: � � r; ff nmm i 21. No Rise Standard. Prohibit encroachments, including fill, new construction, substantial improvements, and other development, unless certification by a registered professional engineer eer#+f+es, is provided demonstrating, through hydrologic and hydraulic analyses performed in accordance with standard engineering practice, that the proposed encroachment would not result in any increase in flood levels during the occurrence of the base flood discharge. 2. Residential Construction in Floodways. Construction or reconstruction of residential structures is prohibited within designated floodways, except for: (i) repairs, reconstruction, or improvements to a structure that do not increase the ground floor area; and (ii) repairs, reconstruction, or improvements to a structure, the cost of which does not exceed 50 percent of the market value of the structure either, (a) before the repair or reconstruction is started. or (b) if the structure has been damaaed. and is beina restored, before the damage occurred. Any project for improvement of a structure to correct existing violations of state or local health, sanitary, or safety code specifications that have been identified by the local code enforcement official and `e'h�that are the minimum necessary to assure safe living conditions, or to structures identified as historic places, shall not he innlu ded may be excluded in the 50 percent. 3. Substantially Damaged Residences in Floodway. a. For all substantially damaged residential structures located in a designated floodway, the Floodplain Administrator may make a written request that the Department of Ecology assess the risk of harm to life and property posed by the specific conditions of the floodway. Based on analysis of depth, velocity, flood -related erosion, W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 20 of 23 54 channel migration, debris load potential, and flood warning capability, the Department of Ecology may exercise best professional judgment in recommending to the local Permitting authority repair, replacement, or relocation of a substantially damaged structure consistent with WAC 173-158-076. The property owner shall be responsible for submitting to the local government and the Department of Ecology any information necessary to complete the assessment. Without a favorable recommendation from the Department for the repair or replacement of a substantially damaged residential structure located in the regulatory floodway, no repair or replacement is allowed per WAC 173-158-070(1). b. Before the repair, replacement, or reconstruction is started, all requirements of the NFIR the state requirements adopted pursuant to 86.16 RCW, and all applicable local regulations must be satisfied. In addition, the following conditions must be met: (1) There is no potential safe building location for the replacement residential structure on the same property outside the regulatory floodway. (2) A replacement residential structure is a residential structure built as a substitute for a legally existing residential structure of equivalent use and size. (3) Repairs, reconstruction, or replacement of a residential structure shall not increase the total square footage of floodway encroachment. (4) The elevation of the lowest floor of the substantially damaged or replacement residential structure is a minimum of one foot higher than the Base Flood Elevation . (5) New and replacement water supply systems are designed to eliminate or minimize infiltration of floodwater into the system. (6) New and replacement sanitary sewerage systems are designed and located to eliminate or minimize infiltration of floodwater into the system and discharge from the system into the floodwaters. (7) All other utilities and connections to public utilities are designed, constructed, and located to eliminate or minimize flood damage. GB. All Other Building Standards Apply in the Floodway. If prepesed sat+sfies Tnnr 16.52.100, a 1_4, TMC Section 16.52.110.A.1 is satisfied or construction is allowed pursuant to TMC Section 16.52.110.A.2, all new construction and substantial improvements shall comply with all applicable standards �4 flood hazard reduction provisions of TMC Section 16.52.100. Section 16. TMC Section 16.52.120 is hereby reenacted to read as follows: 16.52.120 Critical Facility Construction of new critical facilities shall be, to the extent possible, located outside the limits of the Special Flood Hazard Area (SFHA). The Director may permit construction of a new critical facility within the SFHA if no feasible alternative is available. Critical facilities constructed within the SFHA shall have the lowest floor W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 21 of 23 55 elevated three feet above base flood elevation or elevated to the 500-year flood elevation, whichever is higher. Flood -proofing and sealing measures must be taken to ensure that toxic substances will not be displaced by or released into floodwaters. Access to and from the critical facility should also be protected to the height utilized above. Access routes elevated to or above the level of the base flood elevation shall be provided to all critical facilities to the extent possible. Section 17. TMC Section 16.52.125 is hereby established to read as follows: 16.52.125 Compliance All development within special flood hazard areas is subject to the terms of this ordinance and other applicable regulations. Section 18. TMC Section 16.52.130 is hereby reenacted to read as follows: 16.52.130 Penalties No structure or land shall hereafter be constructed, located, extended, converted or altered without full compliance with the terms of this chapter and other applicable regulations. Violations of the provisions of this chapter by failure to comply with any of its requirements (including violations of conditions and safeguards established in connection with conditions) shall constitute a misdemeanor. Any person who violates this chapter or fails to comply with any of its requirements shall upon conviction thereof be fined not more than $1,000, or imprisoned for not more than 90 days, or both, for each violation, and in addition shall pay all costs and expenses involved in the case. Nothing herein contained shall prevent the City of Tukwila from taking such other lawful action as is necessary to prevent or remedy any violation. Section 19. TMC Section 16.52.140 is hereby reenacted to read as follows: 16.52.140 Abrogation and Greater Restrictions This chapter is not intended to repeal, abrogate, or impair any existing easements, covenants or deed restrictions. However, where this chapter and another ordinance, easement, covenant or deed restriction conflict or overlap, whichever imposes the more stringent restrictions shall prevail. Section 20. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 22 of 23 56 Section 21. Severability. This ordinance and the various parts thereof are hereby declared to be severable. Should any Section of this ordinance be declared by the courts to be unconstitutional or invalid, such decision shall not affect the validity of the ordinance as a whole, or any portion thereof other than the Section so declared to be unconstitutional or invalid. Section 22. Declaration of Emergency — Effective Date. The City Council hereby declares that a public emergency exists necessitating that this ordinance take effect on August 19, 2020, upon its passage by a majority plus one of the whole membership of the Council, and that these interim flood hazard regulations must be imposed as an emergency measure in order to protect the public health, safet , Property and GffiGial Rewspaper welfare. This erdiRaRGe ef the Gity, or a summary thereof shall be published and shall take effeGt and be OR full ferGe five days in the afteF passage and publ+catiGR as published in lieu of publishing prev;ded by law. A summary of this ordinance the ordinance in its entirety. may be PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 12020. ATTEST/AUTH ENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Kari L. Sand, City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing\Ordinances\Flood Plain Management INTERIM ordinance strike-thru 8-4-20 RL:bjs Page 23 of 23 57 w City of 1 City Council Transportation & Infrastructure Committee Meeting Minutes August 3, 2020 - 5:30 p.m. - Electronic Meeting due to COVID-19 Emergency Councilmembers Present: Cynthia Delostrinos Johnson, Chair; Verna Seal, Kate Kruller Staff Present: David Cline, Hari Ponnekanti, Han Kirkland, Gail Labanara, Joseph Todd, Joel Bush, Adam Cox, Ryan Larson, and Scott Bates Chair Delostrinos Johnson called the meeting to order at 5:32 p.m. I. BUSINESS AGENDA A. Ordinance: Astound Franchise 1-Year Extension Staff is seeking Council approval of an ordinance that will extend the franchise term with Astound Broadband, LLC to August 11, 2021 and allow for additional one-year extensions. Item(s) needing follow-up Provide an updated memo showing a map of the Astound coverage area, if the City can get a better deal on 1-net and continue negotiations to assist the City with coverage in underserved areas. Committee Recommendation Unanimous approval. Forward to August 10, 2020 Committee of Whole. B. Ordinance: Interim Flood Plain Management Staff is seeking Council approval of an ordinance to adopt interim Flood Plain Management regulations in compliance with FEMA requirements. Committee Recommendation Unanimous approval. Forward to August 10, 2020 Committee of the Whole. C. 42"d Avenue South Bridge Closure Committee members and staff discussed the recent three-day closure of the 42nd Avenue South Bridge, including lessons learned and improvements for future road/bridge closures. Committee Recommendation Discussion only. 59 COUNCIL AGENDA SYNOPSIS ----------------------------------Initials Meeting Date Prepared by Mayors review Council review 08/10/20 LH 08/17/20 LH ITEM INFORMATION ITEM NO. 3.D. STAFF SPONSOR: BRUCE LINTON ORIGINAL AGENDA DATE: 8/ 10/20 AGENDA ITEM TITLE School Speed Zone Automated Safety Camera Contract CATEGORY ® Discussion Mtg Date 08/10/20 ® Motion Mtg Date 08/17/20 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ TS ❑ P&R ❑ Police ❑ PW SPONSOR'S The City Council authorized automated traffic cameras in school speed zones via Ordinance SUMMARY No. 2612. NovaGlobal has been selected as the contract awardee after successfully demonstrating the requisite expertise in implementation and management during the RFP process. REVIEWED BY ❑ Trans&Infrastructure ® CommunitySvs/Safety ❑ Finance Com ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 7/27/20 COMMITTEE CHAIR: KRULLER RECOMMENDATIONS: SPONSOR/ADMIN. Recommend approval COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $Variable $0 $0 Fund Source: N/A Comments: The program is self sustaining with two citations per day per camera mitigating the /ease, MTG. DATE RECORD OF COUNCIL ACTION 08/10/20 08/17/20 MTG. DATE ATTACHMENTS 08/10/20 Informational Memo dated July 9, 2020 Service Contract with NovaGlobal, Inc. (updated after CSS Committee) Minutes from the Community Services & Safety Committee meeting of 7/27/20 08/17/20 61 62 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Public Safety Committee FROM: Bruce Linton, Chief of Police BY: Bruce Linton, Chief of Police CC: Mayor Ekberg DATE: 07/09/2020 SUBJECT: School Speed Zone Automated Safety Camera Contract ISSUE A contract between the City of Tukwila and NovaGlobal, Inc. to install and assist the city in the administration and operation of systems to monitor and report school zone speed violations, in accordance with applicable laws and ordinances, is required to conduct school speed zone enforcement. BACKGROUND Ordinance No. 2612 codified in Chapter 9.53 (link) of The Tukwila Municipal Code authorized the use of automated traffic safety cameras in school speed zones pursuant to the authority granted to it under RCW 46.63. The Informational Memo dated 7/10/19 (link) describes the School Speed Zone Program in great detail. Additional background about the City Council's decision -making process can be found in the 7/22/19 Committee of the Whole (link) and 8/5/19 Regular Meeting (link) minutes. NovaGlobal was selected as the contract awardee after successfully demonstrating the requisite expertise in implementing and managing Automated Traffic Enforcement Programs during the Request for Proposal (RFP) process. ANALYSIS Using automated safety cameras will increase efficiencies in the areas of traffic enforcement, education and the overall traffic and pedestrian safety within our city. They will provide more efficient service with no immediate additional FTE's. Traffic Safety cameras are non- discriminatory, and the Tukwila Municipal Court has indicated that it maintains the authority, will consider, and mitigate the financial impact of fines to our vulnerable community with alternative enforcement strategies. NovaGlobal will collaborate with the police department to initiate pre -operational outreach prior to system implementation. The Tukwila Police Department reached out to the community over time and garnered the support leading up to the approval of Ordinance 2612 (link). {KZ52207064.DOCX;1/13175.000001/ } 63 INFORMATIONAL MEMO Page 2 • Former Public Safety Committee • Tukwila School Board • Community Oriented Police Citizens Advisory Board • Tukwila International Boulevard Action Committee • Equity and Social Justice Committee • Tukwila Reporter Newspaper • Hazelnut Publication • City of Tukwila Website linked to Police Department Website FINANCIAL IMPACT Consistent with normal Red -Light and School Zone Camera Vendor business models, there are no upfront costs. The equipment is leased from the vendor, and the program is self - funding (two citations per day per camera will mitigate the lease costs). Pricing for NG Safety systems relating to fixed speed photo enforcement shall be as follows: $3,999.00 per system per month, with less than 400 citations issued by the City per month. $4,900.00 per system per month, with between 400 and 800 citations issued by the City per month. $5,700.00 per system per month, with more than 800 citations issued by the City per month. This is a 3-year contract, and the per -year contractual cost would range from approximately $96,000 to 137,000 based on the pricing range associated with the volume levels indicated above. RECOMMENDATION Forward to the Council for approval of the 3-year Pilot Program proposal for the School Speed Zone Cameras to the August 10, 2020 Committee of The Whole Meeting and subsequent August 17, 2020 Regular Meeting. ATTACHMENTS Services Agreement Between the City of Tukwila and NovaGlobal, Inc. 64{KZ52207064.DOCX;1/13175.000001/ } SERVICES AGREEMENT BETWEEN THE CITY OF TUKWILA, WASHINGTON AND NOVOAGLOBAL, INC. FOR TRAFFIC INFRACTION DETECTION & ENFORCEMENT PROGRAM This AGREEMENT (the "Agreement") made this day of March, 2020, by and between NovoaGlobal, Inc. (formerly known as Sensys America, Inc.), a Delaware corporation having a place of business at 8018 Sunport Drive, Suite 203, Orlando, Florida 32809 ("NG"), and the City of Tukwila, a municipal corporation of the State of Washington, having an address at 6200 Southcenter Boulevard, Tukwila, WA 98188 (the "City" and together with NG, the "Parties" and each singularly a "Party"). WITNESSETH: WHEREAS, pursuant to thechapter 9.53 of the Tukwila Municipal Code of the city 4 Tukwila, Washington, tle-9=s Automated Traffic Safety Cameras in School Zones, Chapter 9.G3, §9.G3 as ,,,..wndea, the City may implement an automated photo enforcement program; WHEREAS, NG has the knowledge, possession, and ownership of certain equipment, licenses and processes, referred to collectively as the NG Safety System (the "System(s)"); WHEREAS, the City desires to use the Systems to monitor and enforce school zone speed violations in accordance with applicable laws and ordinances; WHEREAS, the Parties desire to enter into this Agreement, whereby NG will (i) install and assist the City in the administration and operation of the Systems, as described in more detail on Exhibit to this Agreement at the locations within the City's jurisdiction, and provide to the City the services (the "Services"), all as more fully described on Exhibit A, and (ii) in connection with the Services, license certain software and lease certain equipment to the City. NOW, THEREFORE, in consideration of the mutual terms, covenants, and conditions contained herein, and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows: 1. RECITALS AND EXHIBITS. The foregoing recitals are true and correct and are hereby incorporated in haec verba. All exhibits attached to this Agreement contain additional terms of this Agreement and are hereby incorporated in haec verba. 2. SERVICES 2.1. NG agrees to install and provide to the City for the Term, the Systems (the "Equipment") and software (the "Software") to be supplied and installed by NG in accordance with Exhibit (including the provision of all construction drawings, permit applications and other documents required by applicable law for the I- {KZS2229149.DOCX;1/13175.000001/ } 65 installation and operation of the System(s)). In addition, if and to the extent set forth in Exhibits A, B, C, and D, NG shall also supply to the City: 2.1.1. GitatienInfraction preparation processes that assist the City in complying with current applicable City, State, and Federal law; 2.1.2. Training of personnel designated by the City involved with the operation of the Systems and/or the enforcement and disposition of eitationsinfractions, 2.1.3. Expert witness testimony regarding the operation and functionality of the System; and 2.1.4. Other support services for the System as set forth in Exhibit A. 2.2. If and to the extent the City has or obtains during the Term custody, possession or control over any of the Equipment or Software, the City agrees: 2.2.1. Such Software, if manufactured or licensed by NG, is supplied under the license set forth in Exhibit B (the "License") to which the City agrees; 2.2.2. Such Software, if manufactured by third parties, is supplied under third - party licenses accompanying the Software, which licenses the City acknowledges receiving and to which it hereby agrees; and 2.2.3. Such Equipment is supplied under the lease terms set forth in Exhibit C (the "Lease") to which the City hereby agrees. 2.3. The City understands and agrees that (i) NG may, subject to the prior approval of the City, which approval shall not be unreasonably delayed, conditioned or withheld, subcontract with third parties for the provision or installation of part or parts of the Systems or Services and (ii) installation of the Systems requires the City's cooperation and compliance with IWNG's reasonable instructions (including but not limited to City's provision of the personnel, equipment, engineering plans, and other resources as described in Exhibit A or as otherwise reasonably requested by NG) and reasonable access by NG (or such third parties) to City premises and systems and (iii) the City will provide all of the foregoing in Section 2.3(ii) to NG. 2.4. The City understands and agrees that the Systems will be owned by NG (or its designees). The City shall use its best efforts to assist NG to identify any third -party who is responsible for damage to the Systems or any part thereof. 2.5. NG shall coordinate its work with the City's Police and Public Works Departments. 3. TERM 4 {KZS2229149.DOCX;1/13175.000001/ } 0 3.1. The effective date of this Agreement shall be the date first written above (the "Effective Date"). The initial term (the "Initial Term") of this Agreement, the License and the Lease shall begin upon the Effective Date, following full execution of the Agreement by the Parties, and shall continue until the third (3rd) anniversary of the Installation Date (the "Installation Date"). 3.2. The City shall have the option to extend this Agreement, the License and the Lease for two (2) additional three (3) year terms (each, a "Renewal Term"), on the same terms and conditions specified herein except that the amounts due pursuant to Section 5 hereof shall be adjusted in accordance with the change in the Consumer Price Index — All Urban Consumers — U.S. City Average ("CPI") by multiplying said amounts by the percentage change in the CPI from the beginning of the immediately preceding term to the end of the immediately preceding Term. (Each Renewal Term, if any, together with the Initial Term, the "Term"). The "Installation Date" shall be the latest date that a System becomes installed and operational at any of the originally selected locations described in Sections LA or 1.13 of Exhibit A. 4. TERMINATION AND EXPIRATION 4.1. This Agreement may be terminated by mutual written consent of the Parties. 4.2. This Agreement may be terminated for cause, by either Party if the other Party fails in any material way to perform its obligations under the Agreement or otherwise defaults in the performance of any obligation under this Agreement and such failure or default continues for more than forty-five (45) days after written notice thereof to the defaulting Party. 4.3. NG may terminate this Agreement, without liability, on thirty (30) days advance written notice if NG concludes in its reasonable discretion that (i) potential or actual liability of NG to third parties (other than persons claiming to own Intellectual Property required for the operation of the System) arising out of or in connection with the System makes the program impractical, uneconomical or impossible to continue. 4.4. The City may terminate this Agreement on thirty (30) days advance written notice if the City concludes in its reasonable discretion that (i) potential or actual liability of the City to third parties arising out of or in connection with the System makes the program impractical, uneconomical, legally contested or impossible to continue; and/or (ii) the Systems cannot be installed. 4.5. Upon termination or expiration of this Agreement, either for default or because it has reached the end of its term, the Parties recognize that the City will have to 4 {KZS2229149.DOCX;1/13175.000001/ 1 67 process violations in the "pipeline," and that NG aeee must assist the City in this accord. Accordingly, the Parties shall take the following actions during the wind -down period, and shall have the following obligations, which obligations shall survive termination or expiration of the Agreement: 4.5.1. The City shall cease using the Software and Equipment in its possession, custody or control and shall (a) immediately allow NG a reasonable opportunity to remove such Equipment not to exceed sixty (60) days and (b) immediately deliver to NG or irretrievably destroy, or cause to be so delivered or destroyed, any and all copies of such Software in whatever form and any written or other materials relating to such Software in the City's possession, custody or control and within sixty (60) days deliver to NG a certification thereof. 4.5.2. Unless directed by the City not to do so, NG shall continue to process all images taken by the City before termination and provide all services associated with processing in accordance with this Agreement, and shall be entitled to reasonable fees specified in the Agreement as if the Agreement were still in effect. 4.6. Notwithstanding anything to the contrary contained herein, or in the License or the Lease, but except as provided in Section 21, the License and the Lease shall terminate upon the termination or expiration of this Agreement. 5. FEES AND PAYMENT The City agrees to pay NG a monthly fee as follows (the "Monthly Fees"): 5.1. Monthly Fees (pro -rated for any partial month) as described in Exhibit D (Compensation & Pricing) in arrears with respect to each approach at which a System has been installed. Such payment shall commence on the first business day of the month following Commencement of Operations of each System and shall continue on the first business day of each month for the Term or until this Agreement is sooner terminated or such payment is modified in accordance with Section 3.2. For purposes of this Agreement, "Commencement of Operations" shall mean the first full day that the System captures events for processing and issuance of notices of violation. 5.2. The City, being a Municipal Corporation, shall pay sales tax in accordance with WAC 458-20-189. Accordingly, NG shall add sales tax to the invoices provided to the City in compliance with Washington State Law. I- {KZS2229149.DOCX;1/13175.000001/ } 5.3. In the event that the United States Postal Service increases applicable First Class Mail and/or Certified Mail postage, NG may invoice the City for the increased postage actually paid by NG in connection with this Agreement. For example, if First Class Mail postage were increased by $0.02, and NG mailed 1,000 notices, NG would invoice the City $20.00. 5.4. Payment of all fees and other charges owed pursuant to this Agreement is due as set forth above, and, to the extent invoice is required, within forty-five (45) days after receipt of the invoice. Invoices will be sent to the City at: SafetyCams@TukwilaWa.gov 5.5. Notwithstanding anything in this Agreement to the contrary, if amounts due to NG pursuant to Section 5.1 in any month during the Term plus any amounts due to NG pursuant to this Section 5.5 ("Monthly Photo Enforcement Fees") exceed the revenue generated by operation of the Systems and actually received by the City during that same month ("Monthly Photo Enforcement Revenue") then the City shall pay to NG for such month only the amount of Monthly Photo Enforcement Revenue. In such case, the difference between Monthly Photo Enforcement Fees and Monthly Photo Enforcement Revenue (a "Payment Shortfall") shall be accumulated and added to the Monthly Photo Enforcement Fees for the following month. Payment Shortfalls, if any, shall accumulate from month -to -month until paid in full, provided that under no circumstances shall the City ever be required to make a payment of Monthly Photo Enforcement Fees to NG except from Monthly Photo Enforcement Revenue. At the final expiration of this Agreement (last day of validity of the agreement including any extensions) any accumulated Payment Shortfalls shall be forfeited. 6. RESPONSIBILITIES OF THE CITY 6.1. The City shall provide NG with any "as built" drawings in electronic format that are available at no cost to the City and shall consider for approval NG's engineering drawings. 6.2. The City shall not levy any fees. However, if municipal ordinance requires the assessment of fees by the City, said assessment shall be limited to permit fees as required by the City's Municipal code. The City does not control fees for Public Utilities or electrical permits for service. Levy of those fees for permits regarding electrical service are outside the scope of this contract. 6.3. The City shall diligently prosecute ^i+�sinfractions in court at its own expense. NG shall, at its own expense, participate in any proceeding challenging the use of 4 {KZS2229149.DOCX;1/13175.000001/ } We the System, the validity of the System's results, and/or use of the U.S. Mail to deliver ^ egran infraction notice. 6.4. The City will cooperate with NG in obtaining electrical connections at the roadside and NG shall pay all costs associated with such connection and shall pay for all power required by the System. 6.5. To allow for proper operation of the System, when known to the City, the City shall provide NG with advance written notice of any modifications proposed to roadways after installation of a System. In the event any such roadway modification requires a material change to the System, the City shall pay the costs reasonably incurred by NG to adapt the affected video monitoring system(s) or fixed speed enforcement unit(s) to make such video monitoring system(s) or fixed speed enforcement unit(s) compatible therewith. Notwithstanding the above, NG makes no guarantee that it will be able to make any such adaptation. In the event that NG is unable to adapt the affected System, then both parties shall be relieved of any further obligations under this Agreement with respect only to the affected System. 6.6. During the Term, except as expressly permitted by this Agreement the City shall not use the System, or allow the System's use by a third party, without the prior written permission of NG. 7. LIMITED WARRANTY AND LIMITATION ON DAMAGES 7.1. NG warrants that the System's functionality will conform in all material respects to the description of the System set forth on Exhibit A. 7.2. EXCEPT AS SPECIFICALLY PROVIDED HEREIN, NG HEREBY DISCLAIMS ALL OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, WITH RESPECT TO THE SERVICES AND SYSTEM, INCLUDING, WITHOUT LIMITATION, ALL IMPLIED WARRANTIES OF TITLE, NON -INFRINGEMENT, NON-INTERFERENCE WITH ENJOYMENT, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE AND ALL WARRANTIES IMPLIED FROM ANY COURSE OF DEALING OR USAGE OF TRADE. THE CITY ACKNOWLEDGES THAT EXCEPT AS EXPRESSLY PROVIDED HEREIN NO OTHER WARRANTIES HAVE BEEN MADE TO MUNICIPALITY BY OR ON BEHALF OF NG OR OTHERWISE FORM THE BASIS FOR THE BARGAIN BETWEEN THE PARTIES. 7.3. The City acknowledges and agrees that: 7.3.1. The Systems may not detect every speeding violation; 4 {KZS2229149.D0CX;1/13175.000001/ } 70 7.3.2. Since the System may flag as a violation conduct that is in fact not a violation, the output of the System will require review, analysis and approval by personnel appropriately qualified and authorized by the City under applicable law prior to the issuance of any citation; 7.3.3. The System has no control over, and relies on the proper functioning of equipment provided by entities other than NG; 7.3.4. The proper functioning of the System requires the City's full and complete compliance with the Systems' operating instructions, which it hereby agrees to do; and 7.3.5. NG shall not be responsible for the configuration and/or operation of any intersection traffic light systems and NG shall have no liability or obligations with respect thereto. 8. INDEMNIFICATION AND INSURANCE 8.1. NG shall at all times comply with all federal, state and local laws, ordinances and regulations and shall comply with the maintenance procedures and manufacturer's recommendations for operation of the Systems which affect this Agreement and shall defend, indemnify and hold harmless the City against any claims, injuries, damages, losses, or suits including attorney fees, arising from NG's violation of any such laws, ordinances and regulations or any claims arising from NG's performance of this Agreement, including as a result of the negligence, recklessness, or willful misconduct of NG, its officers and directors, agents, attorneys, and employees, but excluding any employees or agents of City. 8.2. NG agrees to indemnify, defend, and hold harmless the City from any and all claims, damages, injuries, losses, or suits including attorney fees, by a third party arising from either (a) a finding that the System infringes any validly issued United States patent or (b) NG's willful misconduct, recklessness, or negligence, provided that such claim of damages, except for injuries and damages caused by the sole negligence of the City, which is not attributable to (i) any act or omission set forth in Section 8.3 or (ii) any third -party software or other third -party products used with, required for use of, or supplied under their own names with or as part of the System. If, as a final result of any litigation of which NG is obligated to indemnify, the use of the System by the City is prevented, in whole or in part, by an injunction, NG's sole obligation to the City as a result of such injunction shall be, at NG's option, either to (i) replace such part as has been enjoined, or (ii) procure a license for NG or the City to use same, or (iii) remove same and terminate this Agreement at no additional cost to the City. 4 {KZS2229149.DOCX;1/13175.000001/ 1 1 71 8.3. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the NG and the City, its officers, officials, employees, and volunteers, the NG's liability hereunder shall be only to the extent of the NG's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the NG's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 8.4. Notwithstanding anything in this Agreement to the contrary, NG assumes no obligation or liability for any claim of damages (including the payment of reasonable attorneys' fees) by a third party arising from or related to (i) any modification of the System made by the City, (ii) the sole negligence or willful misconduct of the City, (iii) the failure to function properly of any hardware, software or equipment of any kind used by, in or on behalf of the City (other than that supplied by NG), or (iv) the review and analysis of the System data output by the City personnel for eitatieninfraction preparation. 8.5. The rights of the City to seek indemnification under this Section 8 shall be conditioned upon (i) the City notifying NG promptly upon receipt of the claim or action for which indemnification is sought and (ii) the City's full cooperation with NG in the settlement or defense of such claim or action at no cost to the City. The City agrees not to charge NG for the time of the City's personnel engaged in such cooperation. Such cooperation shall include, but not be limited to, the City providing access for, and permission to, NG for the purpose of the replacement of such part or parts of Systems as NG may deem necessary or desirable. The City may participate in the defense of any indemnified matter through counsel of its own choice and at its own expense provided that NG shall remain in, and responsible for, control of the matter. This Section 8 states the entire liability and obligation and the exclusive remedy of the City with respect to any actions or claims (i) of alleged infringement relating to or arising out of the subject matter of this Agreement or (ii) otherwise the subject of this paragraph. 8.6. NG shall maintain the following minimum scope and limits of insurance: 8.6.1. Comprehensive general liability insurance with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. Commercial General Liability insurance shall be at least as broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop- gap, products -completed operations, independent contractors, personal 4 {KZS2229149.DOCX;1/13175.000001/ } 72 injury and advertising injury, and liability assumed under an insured contract. The City shall be named as an additional insured under NG'S Commercial General Liability insurance policy with respect to the work performed for the City using an additional insured endorsement at least as broad as ISO CG 20 26.Workers Compensation coverage as required by the Industrial Insurance laws of the State of Washington; and 8.6.2. Comprehensive Automobile Liability Insurance for all owned, non -owned and hired automobiles and other vehicles used by NG with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. Automobile Liability insurance shall cover all owned, non - owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 8.6.3. Commercial Umbrella covering General Liability, Auto Liabili , and Employers Liability providing an additional coverage of $1,000,000. 8�8.6.4. Other Insurance Provision. The Consultant's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance with respect to the City. Any Insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Consultant's insurance and shall not be contributed or combined with it. 8.6:4.8.6.5. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. 8�8.6.6. Verification of Coverage. Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. Upon request by the City, the Consultant shall furnish certified copies of all required insurance policies, including endorsements, required in this Agreement and evidence of all subcontractors' coverage. 8.6.6.8.6.7. Notice of Cancellation. The Consultant shall provide the City with written notice of any policy cancellation, within two business days of their receipt of such notice. 8�8.6.8. Failure to Maintain Insurance. Failure on the part of the Consultant to maintain the insurance as required shall constitute a material breach of 4 (KZS2229149.DOCX;1/13175.000001/ 1 73 contract, upon which the City may, after giving five business days' notice to the Consultant to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Consultant from the City. 8.7. The City shall be named as additional insured on the comprehensive general liability policies provided by NG under this Agreement. NG shall require any subcontractors doing work under this Agreement to provide and maintain the same insurance, which insurance shall also name the City and its officers, employees, and authorized volunteers as additional insured. 8.8. Certificates showing NG is carrying the above described insurance, and evidencing the additional insured status specified above, shall be furnished to the City within thirty (30) calendar days after the date on which this Agreement is made. Such certificates shall show that the City shall be notified of all cancellations of such insurance policies. NG shall forthwith obtain substitute insurance in the event of a cancellation. 8.9. All insurance required by express provision of this Agreement shall be carried only in responsible insurance companies licensed to do business in the State of Washington and shall name as additional insured the City. NG will furnish the City with Certificates of Insurance and applicable endorsements for all such policies promptly upon receipt of them. NG may effect for its own account insurance not required under this Agreement. 9. CHANGE ORDERS OR ADDITIONAL SERVICES. Changes to Services and additional Systems may be added to this Agreement by mutual consent of the Parties in writing as an addendum to this Agreement. The City and NG agree that should legislation or local ordinance be enacted to enable new photo enforcement solutions within the City's jurisdiction, the City shall have the option to negotiate services and fees and issue a change order to cover such services. 9.1. The City will appoint a project manager, which shall be an administrative ranked City Police Officer who will have oversight of the installation and implementation of the NG systems. The proj ect manager has the authority to make daily operational management decisions. Only the Mayor or his/her designee has the authority to authorize additional systems exceeding the original agreement, change orders, request additional services, and extensions. 10. CONFIDENTIAL AND PROPRIETARY INFORMATION; PUBLIC RECORDS LAW COMPLIANCE. I- {KZS2229149.DOCX;1/13175.000001/ } ID 10.1. The Parties agree that they shall comply with the public records disclosure provisions of the Revised Code of Washington, Chapter 42.56, Public Records Act and RCW 46.63.170(1)(g). 10.2. NG agrees that: 10.2.1. All information obtained by NG through operation of the Systems shall be made available to the City at any time during the Tukwila Municipal Court's normal business hours which are 08:30am to 5:00pm pacific time, excluding Proprietary Information not reasonably necessary for the prosecution of citations or fulfillment of the City's obligations under this Agreement. 10.2.2. It shall not use any information acquired from the performance of the Services contemplated in this Agreement, including without limitation, information with respect to any violations, violators, information obtained from recorded images or information concerning the City's law enforcement activities for any purpose other than for the benefit of the City. 10.2.3. No information given by NG to the City will be of a confidential nature, unless specifically designated in writing as "Proprietary Information" and expressly exempt from public records disclosures required by the Revised Code of Washington, Chapter 42.56, Public Records Act. 10.2.4. As used in this Agreement, the term "Proprietary Information" shall mean all trade secrets or confidential or proprietary information designated as such by NG, whether letter or by the use of an appropriate proprietary stamp or legend, prior to or at the time any such trade secret or confidential or proprietary information is disclosed by NG to the City. In addition, the term "Proprietary Information" shall be deemed to include: (a) any notes, analyses, compilations, studies, interpretations, memoranda or other documents prepared by the Recipient which contain, reflect or are based upon, in whole or in part, any Proprietary Information furnished to the Recipient. 10.2.5. The City shall use the Proprietary Information only for the purpose of fulfilling its duties hereunder (the "Purpose") and such Proprietary Information shall not be used for any other purpose without the prior written consent of NG. "Purpose" shall be deemed to not include any disclosure of the Proprietary Information to any person or entity. The City shall hold in confidence, and shall not disclose to any person or entity, any Proprietary Information nor exploit such Proprietary Information for its own benefit or the benefit of another without the prior written consent of NG. 4 fKZS2229149.DOCX;1/13175.000001/ } 75 10.2.6. Notwithstanding anything contained in this Agreement to the contrary, this Agreement shall not prohibit the City from disclosing Proprietary Information to the extent required in order for the City to comply with applicable laws and regulations, provided that the City provides prior written notice of such required disclosure to NG. 11. INDEPENDENT CONTRACTOR; NO AGENCY. 11.1. It is understood that NG is an independent contractor and not an agent or employee of the City for any purpose including, but not limited to, federal tax and other state and federal law purposes. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Contractor nor any employee of Contractor shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Contractor, or any employee of the Contractor. NG specifically assumes responsibility for payment of all federal, state and local taxes imposed or required of NG under unemployment insurance, Social Security and income tax laws for the duration of this contract. NG shall be solely responsible for any worker's compensation insurance required by law and shall provide the City with proof of insurance upon demand. The parties agree that the City shall not: 11.1.1. Pay dues, licenses or membership fees for NG; 11.1.2. Require attendance by NG, except as otherwise specified herein; 11.1.3. Control the method, manner or means of performing Services under this Agreement, except as otherwise specified herein; or 11.1.4. Restrict or prevent NG from working for any other Party. 11.2. Neither Party has the right or the power to enter into any contract or commitment on behalf of the other Party, including entering into agreements with third parties, exercising incidents of ownership with respect to property owned by the Party or executing contracts binding upon the other Party. 12. NOTICES. 12.1. Any notices or demands which, under the terms of this Agreement or under any statute, must or may be given or made by NG or the City shall be in writing and shall be given or made by personal service, first class mail, FedEx, or by certified or registered mail to the Parties at the following addresses: 4 (KZS2229149.DOCX;1/13175.000001/ 1 76 Notices to the City of Tukwila shall be sent to the following address: City Clerk, City of Tukwila 6200 Southcenter Blvd Tukwila, WA 98188 Notices to NG shall be sent to the following address: NovoaGlobal, INC 8018 Sunport Drive Suite 203 Orlando, FL 32809 12.2. Except as otherwise specified, all notices, payments and reports hereunder shall be deemed given and in effect as of the date of mailing or transmission, as the case may be, when sent by next day delivery or courier service, postage pre -paid, or three (3) days after the date of mailing when sent by first class mail, postage pre- paid, addressed in all such cases to the Parties as set forth in section 12.1, above, in each case to the President of NG or the Mayor of the City. 13. ASSIGNMENT. Except as specifically provided in this Agreement, neither Party may assign, or delegate performance of its obligations under, this Agreement, without prior express written consent of the other Party, except that NG may assign or otherwise encumber this Agreement, the License and the Lease for the purpose of obtaining financing; provided, however, that this Agreement may be assigned to any Person that acquires all or substantially all of NG' assets in one transaction. 14. AMENDMENT AND MODIFICATION. This Agreement may be modified or amended from time to time by the Parties, provided, however, that no modification or amendment hereto shall be effective unless it is stated in writing, specifically refers to this Agreement and is executed on behalf of both Parties. 15. NON WAIVER. The failure of either Party to require performance of any provision of this Agreement shall not affect the right to subsequently require the performance of such provision or any other provision of this Agreement. The waiver of either Party of a breach of any provision shall not be taken or held to be a waiver of any subsequent breach of that provision or any subsequent breach of any other provision of this Agreement. 16. FORCE MAJEURE. Neither Party shall be liable to the other for failure or delay in meeting any obligations hereunder which arises in whole or in part from causes which are unforeseen by, or beyond the control of, such Party, including without limitation, acts of God or of a public enemy, acts of terrorism, acts of the Government (other than the City in the case of the City) in either its sovereign or contractual capacity, fires, floods, epidemics, (KZS2229149.DOCX;1/13175.000001/ 1 77 quarantine restrictions, strikes, freight embargoes, acts or omissions of (i) non - subcontractor third -parties and (ii) third party equipment, telecommunications and software suppliers, and unusually severe weather. When any such circumstance(s) exist, NG shall have the right, in its sole discretion, to allocate its available production, deliveries, services, supplies and other resources among any and all buyers (whether or not including the City), as well as among departments and affiliates of NG, without any liability to the City. 17. DISPUTE RESOLUTION AND REMEDIES. 17.1. All disputes arising out of or in connection with the Agreement shall be attempted to be settled through good -faith negotiation between the City's appointed Project Manager and the President of NG, followed, if necessary, within thirty (30) calendar days, by professionally -assisted mediation. Any mediator so designated must be acceptable to each party and must be a certified mediator in the State of Washington. The mediation will be conducted as specified by the mediator and agreed upon by the Parties. The Parties agree to discuss their differences in good faith and to attempt, with the assistance of the mediator, to reach an amicable resolution of the dispute. The mediation will be treated as a settlement discussion and therefore will be confidential. The mediator may not testify for either party in any later proceeding relating to the dispute. No recording or transcript shall be made of the mediation proceedings. Each party will bear its own costs in the mediation. The fees and expenses of the mediator will be shared equally by the Parties. 17.2. Failing resolution through negotiation or mediation, all actions, disputes, claims and controversies under common law, statutory law or in equity of any type or nature whatsoever, whether arising before or after the date of this Agreement, and whether directly or indirectly relating to: (a) this Agreement and/or any amendments and addenda hereto, or the breach, invalidity or termination hereof; (b) any previous or subsequent agreement between the parties; and/or (c) any other relationship, transaction or dealing between the parties (collectively the "Disputes"), will be subject to and resolved by binding arbitration pursuant to the Commercial Arbitration Rules of American Arbitration Association. Any award or order rendered by the arbitrator may be confirmed as a judgment or order in any state or federal court of competent jurisdiction within the federal judicial district which includes the residence of the Party against whom such award or order was entered. The prevailing Party in any arbitration shall be entitled to reasonable attorney fees and costs. 18. GOVERNING LAW; JURISDICTION; VENUE. The parties agree that this Agreement is consummated, entered into, and delivered in King County, Washington. Notwithstanding 4 (KZS2229149.DOCX;1/13175.000001/ 1 conflicts of laws provisions, this Agreement has been and is to be governed by, construed, interpreted and enforced in accordance with the laws of the State of Washington. In the event that any litigation is commenced by either party to enforce this Agreement, the action will be filed and litigated, if necessary, solely and exclusively in a court of competent jurisdiction located in King County, Washington. The parties waive any and all rights to have this action brought in any place other than King County, Washington, under applicable venue laws. The Parties hereby irrevocably waive any and all rights to have this action brought in any place other those stated herein. The Parties hereby irrevocably waive any claim that any such action has been brought in an inconvenient forum. 19. ATTORNEY'S FEES AND COSTS. In the event arbitration is commenced to enforce this Agreement, costs of said suit including reasonable attorney's fees in all proceedings, trials, investigations, appearances, appeals and in any bankruptcy proceeding or administrative proceeding shall be paid to the prevailing Party by the other Party. 20. DISCRIMINATION PROHIBITED. NG, with regard to the work performed by it under this Agreement, will not discriminate on the grounds of race, religion, creed, color, national origin, age, veteran status, sex, sexual orientation, gender identity, marital status, political affiliation, the presence of any disability, or any other protected class status under state or federal law, in the selection and retention of employees or procurement of materials or supplies. 21. GENERAL AND MISCELLANEOUS. 21.1. Time shall be of the essence of this Agreement. 21.2. In this Agreement, wherefore the singular and masculine are used, they shall be construed as if the plural or the feminine or the neuter had been used, where the context or the party or parties so requires, and the rest of the sentence shall be construed as if the grammatical and the terminological changes thereby rendered necessary had been made. 21.3. Paragraph headings are provided as an organizational convenience and are not meant to be construed as material provisions of this Agreement. 21.4. Preparation of this Agreement has been a joint effort of the Parties and the resulting document shall not, solely as a member of judicial construction, be construed more severely against one of the parties than the other. 21.5. This Agreement may be executed in counterparts, each constituting a duplicate original, but such counterparts shall constitute one and the same Agreement. I- {KZS2229149.DOCX;1/13175.000001/ } 79 21.6. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the Parties to this Agreement from and after the Effective Date. 21.7. Each Party to this Agreement agrees to do, execute, acknowledge, and deliver or cause to be done, executed, acknowledged and delivered, all such further acts, and assurances in a manner and to the degree allowed by law, as shall be reasonably requested by the other party in order to carry out the intent of and give effect to this Agreement. Without in any manner limiting the specific rights and obligations set forth in this Agreement or illegally limiting or infringing upon the governmental authority of the City, the Parties declare their intention to cooperate with each other in effecting the purposes of this Agreement, and to coordinate the performance of their respective obligations under the terms of this Agreement. 21.8. Except as set forth in this Agreement and the Exhibits hereto, no representation, statement, understanding or agreement, whether written or oral, has been made and there has been no reliance on anything done, said or any assumption in law or fact with respect to this Agreement for the duration, termination or renewal of this Agreement other than as expressly set forth in this Agreement and there has been no reliance upon anything so done or said that in any way tends to change or modify the terms or subject matter of this Agreement or to prevent this Agreement from becoming effective. 21.9. This Agreement supersedes any agreements and understandings, whether written or oral, entered into by the Parties hereto prior to the Effective Date of this Agreement. 22. SURVIVABILITY. Termination or expiration of this Agreement shall not relieve either Party of their respective obligations, which are expressly noted to survive termination or expiration or under the following sections which shall survive termination and expiration: Sections 4.5, 5, 7.2, 7.3, 8, 10, 17, 18, 19, 20, and this Section 21. Sections 4, 7 and 8 (but only to the extent Section 8 corresponds to Sections of the Agreement which survive) of the License and Sections 3, 4, 5, 6, 7 and 8 (but only to the extent Section 8 corresponds to Sections of the Agreement which survive) of the Lease shall survive any expiration or termination of this Agreement, the License or the Lease. 23. SEVERABILITY. If any covenant or provision of this Agreement is, or is determined to be, invalid, illegal or unenforceable by a court of competent jurisdiction, then such covenant or provision will be ineffective only to the extent of such prohibition or invalidity. All remaining covenants and provisions of this Agreement shall nevertheless remain in full force and effect, and no covenant or provision of this Agreement shall be deemed to be dependent upon any covenant or provision so determined to be invalid, illegal or 4 {KZS2229149.DOCX;1/13175.000001/ } ME unenforceable unless otherwise expressly provided for herein. The invalidity of any provision of this Agreement or any covenant herein contained on the part of any party shall not affect the validity of any other provision or covenant hereof or herein contained which shall remain in full force and effect. 24. Each party acknowledges that it has read this Agreement and understands the terms and conditions herein. Further, the Parties have caused this Agreement to be executed on its behalf by the authorized officer whose signature appears below under its name, to be effective as of the date written above. IN WITNESS WHEREOF, the Parties hereto have set their hands by their duly authorized representatives as of the day and year first above written. NovoaGlobal, Inc. Carlos Lofstedt President and CEO City of Tukwila, Washington Allan Ekberg Mayor I- {KZS2229149.DOCX;1/13175.000001/ } 0 EXHIBIT A SERVICES NG shall provide the City with the Systems. In connection with furnishing the Systems, NG shall provide the following to the City, each of which is more fully described below: SITE INSTALLATION PLANNING; DESIGN AND EQUIPMENT INSTALLATION 2. TRAINING AND SUPPORT 3. CITATION PREPARATION AND PROCESSING SERVICES 4. MAINTENANCE 5. PUBLIC EDUCATION CAMPAIGN 6. EXPERT WITNESS TESTIMONY AND COURT TRAINING 7. REPORTING 1. SITE INSTALLATION PLANNING, DESIGN AND EQUIPMENT INSTALLATION 1.1. The Systems. 1.1.1. NG will initially install two (2) Systems (which shall remain property of NG), monitoring such locations as the City and NG shall mutually agree. Up to fifty (50) additional Systems may be added at the option of the City with NG's consent. None of the quantities mentioned under this paragraph shall be interpreted as mandatory quantities. The actual quantities to be installed can only be approved by the City. The installation of any system will require the written approval of the Mayor or his/her designee. Each System shall comprise of equipment capable of monitoring violations at a single approach to a school zone for up to five lanes of traffic. NG will install new Systems upon mutual agreement of the Parties. School zone fixed speed enforcement systems will conduct enforcement while beacon systems are in an activated state within the identified school zone. NG will ensure school zone fixed speed enforcement systems are integrated with City's school zone flashing beacons, if present. 1.1.2. Automated traffic safety cameras shall only take pictures of the vehicle and vehicle license plate. The image must not display the face of the driver or of passengers in accordance with RCW 46.63.170(1)(d). 1.1.3. The Systems shall include all equipment located on each roadway or in the right of way, telecommunications equipment, and Software and shall have the capability of transferring images from the roadside in accordance with RCW 46.63.170 to be accessed at the City's Police Department processing facility. I- {KZS2229149.DOCX;1/13175.000001/ } 1.1.4. Substitution, Relocation, or Addition of a Site. If NG or the City reasonably determines that one or more sites selected for installation of a System is not for any reason appropriate for the System (and such determination is made at least fifteen (15) days prior to the commencement of installation of the System at any such location), then alternate location(s) may be substituted by written consent of the Parties. If the average monthly violation collected from any individual system does not meet the level required for the individual system to be cost neutral for a period of twelve (12) consecutive months, the City shall have the right to request relocation of the system to a more effective location. This request must be in writing and before twenty four (24) months of the expiration of the contract or any of its extensions. In response to said request, NG shall have the option to comply with the request, reduce the fee temporarily, or permanently reduce the fee to a level equal to the violation (revenue) collected from that individual system. 1.1.5. Timeframe for Installation of the System. NG shall install and activate the Systems in accordance with an installation timeline to be mutually agreed to by NG and the City, which installation shall conclude within sixty (60) days after all necessary permits and approvals are received by NG. NG shall endeavor to install the System in accordance with the schedule set forth in the Implementation Plan. The City agrees that the estimated dates of installation and activation of the System set forth in the Implementation Plan are subject to delay based on conditions beyond the control of NG and are not guaranteed. 1.1.6. Installation/Ownership of the System. NG shall procure, install and provide support of installed equipment at each of the agreed upon locations. As between NG and the City, all components for the System will remain the property of NG. 1.2. Installation 1.2.1. NG shall submit plans and specifications to the City for review and approval. 1.2.2. All cameras and other equipment shall be enclosed in lockable, weather and vandal -resistant housing. All wiring shall be internal to equipment (not exposed) and if commercially reasonable and if capacity exists, underground in existing conduits, except where required to directly interface with existing electrical service. Separate conduits or other methods, as approved by the City or electrical service provider, may be used by NG if existing conduit(s) are at capacity. 4 {KZS2229149.DOCX;1/13175.000001/ 1 1 M 1.2.3. NG will not enter City's traffic signal control boxes without permission and/or authorization of the City's Public Works Department. 1.2.4. The provision, installation, and maintenance of all necessary electronic system communication equipment will be the sole responsibility of NG. 1.2.5. The System may be mounted on or utilize support of existing traffic signal poles, arms or other City -owned structures where possible, subject to City review and approval. 1.2.6. The System poles, foundations, signs, and new infrastructure, as required, shall conform to applicable law. 1.3. Restoration of Roadways and/or Right of Wad Upon termination or expiration of the Agreement, NG shall remove the System and restore the affected public facilities including returning the roadway and/or right of way to their original condition; provided, however, that NG shall not be required to remove any conduit, in -ground fixture, underground wiring or other infrastructure that will require excavation or demolition. All costs incurred by NG thereby will be the responsibility of NG. 1.4. Compliance with Law. NG shall design and install the System in compliance with all currently existing federal, state and local laws and regulations. NG covenants and agrees that its Systems shall, at all times, comply with all applicable laws, regulations, rules and orders ("Legal Requirements"). NG shall continuously monitor the status of such Legal Requirements to ensure continuous compliance. In the event of any change in the Legal Requirements, NG shall modify or replace (at its sole cost) all or any portion of its non -compliant Systems. Any such modification shall be effected by NG in a reasonable period of time (not to exceed ninety (90) days for modification or one hundred eighty (180) days for complete system replacement) and NG's failure to effect such modification or replacement in a timely manner shall be grounds for the City to terminate this Agreement for cause. Any such termination shall not relieve NG of its obligation to restore each site to its original condition. 2. TRAINING OF CITY PERSONNEL. After System installation, NG shall provide up to eight (8) hours of training for up to ten (10) persons at two (2) sessions at the City's facilities to acquaint City personnel with System operation. Training shall consist of instructional and operational training as well as hands-on equipment exercises with an instructor. All necessary training materials and documentation will be provided by NG at NG's expense. NG shall make all such training services available to the City prior to the end of the thirty (30) day period following the Installation Date. If the City requests additional courses or training, NG shall provide these on a cost reimbursement basis. (KZS2229149.DOCX;1/13175.000001/ 1 Additionally, NG will provide and maintain a web -based training service that includes basic operation instructions as well any system or procedure changes to ensure continuity for court personnel and law enforcement end users. 3. CI INFRACTION PREPARATION AND PROCESSING SERVICES 3.1. Qtyrinfraction Preparation and Processing NG shall (1) perform the initial review of all data generated at the roadside, (2) process and format violations utilizing a computerized traffic eitatio infraction program that shall store all information required for eitatio infraction processing required by state law, local law, and in accordance with court of jurisdiction's specifications, and (3) transfer the *infractions to the Police Department's computer for review and decision on whether or not to issue a eitatienan infraction. If NG is permitted by applicable law or regulation to do so, NG shall also review all Washington State Department of Licensing information and print and mail ^infraction forms. NG shall pay all mailing and postage costs, and such other miscellaneous costs and expenses as may be reasonably necessary to issue a eitatie infraction and deliver it by U.S. mail. To the extent required by applicable law, NG shall obtain a certification of mailing issued by the U.S. Post Office. Notwithstanding anything to the contrary in the foregoing provisions of this Section 3.1, NG will shall not process nor support any ^i*�sinfractions not captured by the System and/or approved by the City. 3.2. Officer Discretion. NG recognizes and agrees that the decision to issue or dismiss eitationan infraction shall be the sole and exclusive decision of a sworn officer of the City's Police Department. In no event shall any NG employee or representative have the ability to authorize or dismiss any eitations infractions. 3.3. Mailing of 0ta-tienig. Cit-atterrslnfractions. Infractions shall be mailed to the violator as soon as is reasonably practicable, and in no event longer than ten (10) business days after being approved by the City and NG has been notified of such approval. The form of eita4io infraction shall be subject to the approval of the City. 3.4. Cooperation With Police and the Courts. NG shall be responsible for, and pay for, the cost of issuing and the mailing eitationsinfractions in accordance with applicable law. NG shall coordinate with the City and the courts and shall comply with the applicable law and court procedures regarding the mailing and other requirements necessary for the issuance and processing of traffic ^i*�sinfractions. All ^i*sinfractions shall be reviewed and approved by the City's Police Department prior to mailing. In addition, NG will cooperate with the courts to set up the necessary communications systems for processing. It is agreed 4 {KZS2229149.DOCX;1/13175.000001/ } 0 that the Tukwila Municipal Court will be solely responsible for processing delinquent notices. 3.5. With respect to each violation authorized by the City, within five (5) business days after NG's receipt of such authorization, NG shall file with the Tukwila Municipal Court, a copy (electronic or otherwise) of the eitatio infraction. NG acknowledges that Washington State law requires all ^i*�sinfractions be filed within five days of issuance (i.e., date signed by Police Officer) or the infraction is subject to dismissal under court rule. Filing of eitationsinfractions within five days of issuance shall be considered a material provision of this Agreement. This paragraph only applies in case that the City choses to use JIS. If the City elects to use NG's Back Office_, then no filing would be required. 3.6. Rental car and business vehicles. NG will coordinate with the City and Courts to establish an acceptable procedure to streamline and coordinate the processing, notification, and accountability of rental car violation and corporate vehicle violations. 3.7. Preparation of Evidence Packa� NG shall provide electronic copies of evidence packages in such form as may be reasonably agreed upon with the courts to enable the City to enforce its ^i*�sinfractions in court. 3.8. Access to License Information. NG shall maintain the ability to access the license information and the registered owner residence address for all U.S. registered vehicles, and the per -request fee for information, if any, shall be paid by NG. If possible, NG will identify rental vehicle and corporate vehicle violations to migrate and merge original ..:,infraction with rental and business nomination for appropriate processing needs. If NG is unable to access such information, NG shall provide the make and license plate number of each violator to the City, which will obtain and input the information into the System, or provide such information to NG within a reasonable period of time. 3.9. Numbering System. NG, in coordination with the City, shall develop and implement an independent numbering system for automated safety camera speeding ^i*�sinfractions. This numbering system should be at least 9 digits and start with the two letters SC (denoting Safety Camera). The final 7 digits should be numeric. 3.10. Transmission of Information. NG shall make all eitatio infraction information available to the City via an electronic file using comma separated value files on a secure FTP site. NG shall maintain a documented chain of custody for all electronically transmitted information while the information is under NG's control. 4 {KZS2229149.DOCX;1/13175.000001/ } 4. MAINTENANCE 4.1. Maintenance of System. Except as provided herein, NG shall Maintain the System (as such term is defined below); provided however, that NG shall not be responsible for any maintenance, repair or replacement required as a result of (i) the negligence or intentional act of the City, its employees, agents or independent contractors (other than NG) and/or (ii) any equipment or software not provided by NG. NG shall maintain a maintenance log that documents all service issues. To "Maintain the System" shall mean to keep the System in a state of operation such that the System's functionality and operation conforms in all material respects to the description of the System set forth in this Exhibit. All problems shall be documented, and repairs commenced within seventy-two (72) business hours after the time NG receives notice thereof. NG shall also install all software revisions for Systems as and when developed and made commercially available by NG. NG is responsible to ensure systems are operational. NG will repair and upgrade as needed, including any vandalized equipment, and maintain a reasonably clean appearance and in a graffiti -free condition. Graffiti shall be removed within 7 days of notice to NG. 4.2. Equipment Checks. When possible, NG shall perform remote camera and equipment checks to confirm proper operation of computers, cameras and communications network. In -field camera equipment inspection will be done as needed or when remote camera and equipment checks are not possible. The System shall have the capability of on-line monitoring of all cameras in each school zone. 4.3. NG will conduct routine testing, evaluation, and monitor the system to ensure the system is operational. If a deficiency, malfunction, or failure of the system is detected, NG will notify the City's Police Department within 72 hours by written or electronic notification. If the system cannot be restored or repaired to full functional capability within 7 consecutive calendar days, NG will reduce the fee to reflect the time the system is deficient, malfunctioning, or failing. The fee reduction shall be applied to the affected billing cycle and continue until the system is restored to full operation. This reduction shall be identified on the billing statement to the City's Police Department. 5. PUBLIC EDUCATION CAMPAIGN 5.1. Public Awareness Program. NG shall assist the City with a Public Awareness Program. Such assistance shall consist of: 5.1.1. Paying for and installing all signage required by State law and local ordinance or as otherwise required by resolution of the City's Council; 4 {KZS2229149.DOCX;1/13175.000001/ } 5.1.2. Reasonable assistance for a media event to launch the community education program; 5.1.3. Preparing, publishing, and printing brochures in as many languages as possible, but at least in English and Spanish; 5.1.4. A reasonable amount of training for City staff ; and 5.1.5. Providing a multi-lingual (including English and Spanish) toll -free customer service hotline which shall be staffed sufficiently during all regular business hours. 6. EXPERT WITNESS TESTIMONY AND COURT TRAINING 6.1. Expert Witness Testimony. NG shall provide expert witness testimony at its sole expense, as necessary, to testify regarding the accuracy and technical operation of the System as necessary for court challenges to the operation of the System. 6.2. Court Training. NG shall conduct a one -day workshop -orientation session for Municipal Court judges (and/or their designees), hearing officers, other appropriate court officials and the City prosecutor. NG will provide and maintain a web -based training service to the City that includes information regarding basic operation and any system or procedure changes to ensure continuity for court staff end users. 7. REPORTING 7.1. Bi-Monthly Report. NG shall submit to the City a Bi-Monthly Report on project results within fifteen (15) days after the end of two -week period and provide web access to such reports. 7.2. Monthly Report. NG shall submit to the City's Public Works Department a monthly Report on statistical information regarding traffic volumes, average speed, and traffic congestion within thirty (30) days after the end of calendar month. Web access to such reports shall also be provided to City's Public Works Department. 7.3. Annual Report. NG shall submit an annual report of the number of citations issued for each camera system and any other relevant information about the automated traffic safety cameras the City deems appropriate for the City's web page. 7.4. Additional Reports or Information. Any other reports and information are not part of the Agreement and the preparation and delivery of any other such reports or information may result in additional fees. 7.5. Database. NG shall maintain a database with the following information per violation: 4 {KZS2229149.DOCX;1/13175.000001/ 1 i S 7.5.1. Location, date and timei 7.5.2. Speed of vehiclei 7.5.3. Vehicle description including license plate state and number; 7.5.4. Applicable vehicle code section violated (if available to NG)h 7.5.5. Citation prepared or reason for not preparing citation (if available to NG))-- 7.5.6. Registered vehicle owner's name and address, and related information required to prepare citations where violation is made by a driver other than registered owner (if available to NG) (i.e., Affidavit of Non -Liability) • and 7.5.7. Status of eitatio infraction (outstanding, cancelled, reissued, paid, bail forfeited, traffic school, warrants issued, etc.) (if available to NG)). 7.6. NG shall maintain, at its sole expense, all records, including, but not limited to all video recordings, which it generates or receives as a result of the performance of services pursuant to the Agreement for the period of time required by, and otherwise in accordance with, the Revised Code of Washington, Chapter 42.56, Public Records Act and Revised Code of Washington 46.63.170, as same may be amended from time to time. Upon receipt of a request from the City for a copy of any record being maintained by NG, NG shall provide the requested record to the City within a reasonable time following such request, but in no event later than seven (7) days following the date the request is received by NG. 7.7. Additional Services (if requested by the City in writing): 7.7.1. School Zone Assessment Pro rg am. NG will generate a video -based analysis of school zones designed to evaluate the frequency of school zone speed violations for each approach to the targeted school zone. The video media will contain up to 16 hours of video monitoring assuming the equipment remains installed at the school zone during the course of monitoring, but not to exceed three consecutive calendar days. A report summarizing the results, along with the media generated will be provided to the City. There is no charge for the initial 16 approaches or any future system placement requests to be evaluated by NG pursuant to this Agreement. 4 {KZS2229149.DOCX;1/13175.000001/ } EXHIBIT B LICENSE AGREEMENT FOR NG SAFETY SYSTEM SOFTWARE This LICENSE AGREEMENT (the "License") is part of an agreement (the "Agreement") (to which a copy of this License is attached as Exhibit B) between the City named in the Agreement and NovoaGlobal, Inc. ("NG") for the NG software product identified above, which includes computer software and may include associated media, printed materials, and "online" or electronic documentation (the "SOFTWARE PRODUCT"). The SOFTWARE PRODUCT also includes any updates and supplements to the original SOFTWARE PRODUCT provided to the City by NG. Any software provided along with the SOFTWARE PRODUCT that is associated with a separate license agreement is licensed to the City under the terms of that license agreement. By execution of the Agreement, the City has agreed to be bound by the terms of this License. Such agreement by the City is an express condition to its ability to use the SOFTWARE PRODUCT. 1. GRANT OF LICENSE. The SOFTWARE PRODUCT is licensed, not sold. This License grants the City only the following rights: The City may use those copies of the SOFTWARE PRODUCT as installed by NG on its network ("Network"). 4-.2.DESCRIPTION OF OTHER RIGHTS AND LIMITATIONS. The City may not reverse engineer, decompile, or disassemble the SOFTWARE PRODUCT, except and only to the extent that such activity is expressly permitted by applicable law notwithstanding this limitation. The SOFTWARE PRODUCT is licensed as a single product. Its component parts may not be separated for use on more than one computer unless so installed by NG. The City may not rent, lease, transfer or lend the SOFTWARE PRODUCT. This License does not grant the City any rights in connection with any trademarks or service marks of NG. Without prejudice to any other rights, NG may terminate this License if the City fails to comply with the terms and conditions of this License. 2-.3. SUPPORT SERVICES AND UPGRADES. NG may provide the City with support services related to the SOFTWARE PRODUCT ("Support Services"). Use of Support Services is governed by the Agreement. Any supplemental software code provided to the City as part of the Support Services shall be considered part of the SOFTWARE PRODUCT and subject to the terms and conditions of this License. With respect to technical information the City provides to NG as part of the Support Services, NG may use such information for its business purposes, including for product support and development. In particular, NG will not utilize such technical information in a form that personally identifies the City or any motor vehicle, tag or person. If the SOFTWARE PRODUCT is labeled as an upgrade, the City must be properly licensed to use a product identified by NG as being eligible for the upgrade in order to use the SOFTWARE PRODUCT. A SOFTWARE PRODUCT labeled as an upgrade replaces and/or supplements the product that formed the basis for the City's eligibility for the upgrade. The City may use the resulting upgraded product only in accordance with the terms 4 (KZS2229149.DOCX;1/13175.000001/ 1 1 91 of this License. If the SOFTWARE PRODUCT is an upgrade of a component of a package of software programs that the City licensed as a single product, the SOFTWARE PRODUCT may be used and transferred only as part of that single product package and may not be separated for use on more than one computer. 34. COPYRIGHT. All title and intellectual property rights in and to the SOFTWARE PRODUCT (including but not limited to any images, photographs, animations, video, audio, music, text, and "applets" incorporated into the SOFTWARE PRODUCT), the accompanying printed materials, and any copies of the SOFTWARE PRODUCT are owned by NG or its suppliers. As between the City and NG, all title and intellectual property rights in and to the images and information which may be generated through use of the SOFTWARE PRODUCT is the City's property. All rights not expressly granted are reserved by NG. 4.5. BACKUP COPY. After installation of one copy of the SOFTWARE PRODUCT pursuant to this License, the City may keep the original media on which the SOFTWARE PRODUCT was provided by NG solely for backup or archival purposes. If the original media is required to use the SOFTWARE PRODUCT on the COMPUTER, the City may make one copy of the SOFTWARE PRODUCT solely for backup or archival purposes. Except as expressly provided in this License, the City may not otherwise make copies of the SOFTWARE PRODUCT or the printed materials accompanying the SOFTWARE PRODUCT. &Q. COMPLIANCE WITH LAW AND EXPORT RESTRICTIONS. The City represents and agrees that it does not intend to and will not use, disseminate or transfer in any way the SOFTWARE PRODUCT in violation of any applicable law, rule or regulation of the United States, or any State of the United States or any foreign country of applicable jurisdiction. Without limiting the foregoing, the City agrees that it will not export or re-export the SOFTWARE PRODUCT to any country, person, entity or end user subject to U.S. export restrictions. The City specifically agrees not to export or re-export the SOFTWARE PRODUCT: (i) to any country to which the U.S. has embargoed or restricted the export of goods or services, which currently include, but are not necessarily limited to Cuba, Iran, Iraq, Libya, North Korea, Sudan and Syria, or to any national of any such country, wherever located, who intends to transmit or transport the products back to such country; (ii) to any end -user who the City knows or has reason to know will utilize the SOFTWARE PRODUCT or portion thereof in the design, development or production of nuclear, chemical or biological weapons; or (iii) to any end -user who has been prohibited from participating in U.S. export transactions by any federal agency of the U.S. government. 67. OTHER PROVISIONS. Sections 3, 4, 7, 10, 17, 18, 19, 20, and 22 of the Agreement are hereby incorporated by reference as if herein set forth in full. 4 {KZS2229149.D0CX;1/13175.000001/ 1 1 92 EXHIBIT C LEASE AGREEMENT FOR NG SAFETY SYSTEMS This LEASE AGREEMENT (the "Lease") is part of an agreement (the "Agreement") (to which a copy of this Lease is attached as Exhibit C) between the City named in the Agreement ("City") and NovoaGlobal, Inc ("NG") (collectively, the "Parties"). The Parties hereto agree as follows: 1. LEASE. NG hereby leases to the City and the City hereby leases from NG, subject to the terms and conditions of this Lease, such items of System equipment (together with all attachments, replacements, parts, additions, substitutions, repairs, accessions and accessories incorporated therein and/or affixed thereto, the "Equipment") that the City obtains possession, custody or control of pursuant to the Agreement. 2. USE AND LOCATION. The Equipment shall be used and operated by the City only in connection with the operation of the System by qualified employees of and in accordance with all applicable operating instructions, and applicable governmental laws, rules and regulations. The City shall not part with control or possession of the Equipment without NG's prior written consent. 3. CONDITION. NG shall maintain the Equipment in good condition and working order in accordance with Section 4 of Exhibit A. The City shall not damage the Equipment or make any alterations, additions or improvements to the Equipment without NG's prior written consent unless such alterations, additions or improvements do not impair the commercial value or the originally intended function or use of the Equipment and are readily removable without causing material damage to such Equipment so as to return the Equipment to its original state, less ordinary wear and tear. Any alteration, addition or improvement not removed prior to the return of the Equipment shall without further action become the property of NG, provided, however, that any alterations, additions and improvements which would reduce the value of the Equipment must be removed prior to the return of such Equipment. 4. RETURN. Upon the expiration or earlier termination of the Agreement, the City shall allow NG reasonable access to remove the Equipment at NG's expense. 5. OWNERSHIP, LIENS. The Equipment is and shall at all times be the property of NG. The City agrees to take all action necessary or reasonably requested by NG to ensure that the Equipment shall be and remain personal property. Nothing in this Lease, the Agreement or any Exhibit shall be construed as conveying to the City any interest in the Equipment other than its interest as a lessee hereunder. If at any time during the term hereof, NG wishes to place on the Equipment labels, plates or other markings evidencing ownership, security or 4 {KZS2229149.DOCX;1/13175.000001/ } 1 93 other interest therein, the City shall allow NG reasonable access therefore and keep the same displayed on the Equipment. 6. NO CITY SUBLEASE; ASSIGNMENT. The City shall not assign or in any way dispose or otherwise relinquish possession or control of all or part of its rights or obligations under this lease or enter into any sub -lease of all or any part of the equipment without the prior written consent of NG. 7. OTHER PROVISIONS. Sections 3, 4, 7, 10, 17, 18, 19, 20, and 22 of the Agreement are hereby incorporated by reference as if herein set forth in full. 4 {KZS2229149.DOCX;1/13175.000001/ } EXHIBIT D COMPENSATION AND PRICING MONTHLY FEE Pricing for NG Safety Systems relating to fixed speed photo enforcement shall be as follows: • $3,999.00 per system per month, with less than 400 eitatiefisinfractions issued by the City per month. • $4,900.00 per system per month, with between 400 and 800 eitationsinfractions issued by the City per month. • $5,700.00 per system per month, with more than 800 eitationsinfractions issued by the City per month. NG acknowledges school zone fixed speed photo enforcement systems will only function during specified times throughout the day and in accordance with City's flashing beacon system, if available. Additionally, NG acknowledges that schools often take breaks for more than seven (7) consecutive calendar days. These school breaks do not constitute a temporary suspension, as defined below. Consequently, NG shall bill the City monthly fees for all months of the year, but shall reduce the monthly fees for all School Zone Systems by twenty five percent (25%). Temporary Suspensions. In the event construction by the City causes a disruption of service under the Agreement, upon NG's written request, the term of the Agreement may be extended at the City's sole discretion. For every two (2) months, (per individual system) of disrupted service the Agreement can be extended for a one -month period. COVIDI9. NG acknowledges that these unprecedented times might impact the start date of the schools. NG will not start enforcing violations and therefore billing until the school reopens or NG is directed to do so by the City. Any delay in the start date and billing will delay the Installation Date. BUSINESS ASSUMPTIONS FOR ALL PRICING OPTIONS 1. Except where a balance remains unpaid due to a deficit in the gross cash received as described herein, City agrees to pay NG within forty-five (45) days after the invoice is received. A monthly late fee of 1.5% is payable for amounts remaining unpaid sixty (60) days from date of invoice or monthly report if such delay is the responsibility of the City. 2. Required Payment Convenience Fees will not be considered to be revenue received and are the responsibility of the violator. 4 {KZS2229149.D0CX;1/13175.000001/ } 95 3. Required Refund Fees will not be considered to be revenue received and are the responsibility of the violator. 4. Violations sent to a collection agency will have an additional charge as negotiated with the chosen collection agency in mutual agreement with the City and the applicable court. 4 {KZS2229149.DOCX;1/13175.000001/ } M Citvof City Council Community Services & Safety Committee Meeting Minutes July 27, 2020 - 5:30 p.m. - Electronic Meeting due to COVID-19 Emergency Councilmembers Present: Kate Kruller, Chair; Thomas McLeod, Cynthia Delostrinos Johnson Staff Present: Bruce Linton, Phi Huynh, Trish Kinlow Chair Kruller called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA A. Contract: School Speed Zone Traffic Cameras Staff is seeking Council approval of contract with NovoaGlobal Inc. for implementation of the school speed zone traffic cameras project approved by the City Council. There are no upfront costs to the city as the program is self-sustaining. The per year cost will range from $96,000 - $137,000 depending on volume. Item(s) requiring follow up: Additional discussion around impacts to underrepresented communities. Committee Recommendation: Unanimous recommendation. Forward to August 10, 2020 Committee of the Whole. B. Police Department Use -of -Force Policies The Committee continued discussion on the Police Department's Use of Force policies. Committee Recommendation: Discussion only. II. MISCELLANEOUS Chair Kruller raised a concern about high speeds at the intersection of42nd Ave S and S 160t" and shared there is some community interest in a roundabout. The meeting adjourned at 6:45 p.m. Committee Chair Approval Minutes by PH 97 COUNCIL AGENDA SYNOPSIS ---------------------------------- Initials Meeting Date Prepared b Mayors review Council review 08/10/20 AY 08/17/20 AY ITEM INFORMATION ITEM NO. 3.E. STAFF SPONSOR: JOEL BUSH ORIGINAL AGENDA DATE: 08/10/20 AGENDA ITEM TITLE Ordinance extending Franchise Agreement with Astound Broadband, LLC CATEGORY ® Discussion Altg Date 08/10/20 ❑ Motion g Date Alt ❑ Resolution Mtg Date ® Ordinance Aft g Date 08/17/20 ❑ Bid Award Aft g Date ❑ Public Hearing Alt g Date ❑Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ 1 S ❑ P&'R ❑ Police ❑ PlF SPONSOR'S Approve an ordinance amending Ordinance No. 2445 extending the franchise term with SUMMARY Astound Broadband, LLC to August 11, 2021 and allow for additional extensions in one- year increments. REVIEWED BY ❑Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Com ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 08/03/20 COMMITTEE CHAIR: DELOSTRINOSJOHNSON RECOMMENDATIONS: SPONSOR/ADMIN. Technology & Innovation Services COMMITTEE Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 08/10/20 08/17/20 MTG. DATE ATTACHMENTS 08/10/20 Informational Memorandum dated 07/31/20 Draft Ordinance Letter of Request for Extension Map (Requested by the Transportation & Infrastructure Committee) Minutes from the 8/3 T&I Committee Meeting 08/17/20 e 100 ■ City of Tukwila Al la n Ek berg, M ayor Public Works 0epar€ment - Hari Ponnekand, Intedrn Director ,t INFORMATIONAL MEMORANDUM TO: Transportation and Infrastructure Committee FROM: Joseph Todd, CIO & Director Tukwila Technology & Innovation Services BY: Eric Compton, Franchise & Technology Specialist CC: Mayor Ekberg DATE: July 31, 2020 SUBJECT: Astound Broadband, LLC Franchise Agreement Ordinance No. 2445 Amendment and Extension of Franchise ISSUE Approve an ordinance amending Ordinance No. 2445 extending the franchise term with Astound Broadband, LLC, to August 11, 2021, and amending ordinance to allow for additional extensions in one-year increments at the City's discretion. BACKGROUND State law provides cities the authority to establish franchises to telecommunication providers who wish to occupy city owned rights -of -way. Tukwila Municipal Code 11.32.060 requires all telecommunication providers to obtain franchise agreements with the City prior to approval to construct, maintain and operate within the City limits. On August 4, 2014, the City Council passed Ordinance No. 2445, granting a five-year franchise to Astound Broadband, LLC (d.b.a. "Wave"). The current franchise agreement term ends on August 11, 2020 and allows for a single one-year extension. DISCUSSION A request to extend the franchise agreement by five years was submitted by Wave on January 6, 2020. Section 3 of Ordinance No. 2445 allows the City to extend the franchise by up to one year beyond the term of the expiration date. Staff recommends amending the ordinance to allow for additional extensions in one-year increments and granting another one-year extension to allow time for a new franchise agreement to be developed and agreed upon by both parties. FINANCIAL IMPACT There is no direct financial impact to the one-year extension but developing a new franchise agreement will require staff time to complete. RECOMMENDATION Council is being asked to approve the Ordinance that amends Ordinance 2445 and extends the Astound Franchise Agreement for one year and to consider this item at the August 3, 2020 Transportation and Infrastructure Committee meeting and subsequent on the Consent Agenda on the August 17, 2020 Regular Meeting. ATTACHMENTS • Draft Ordinance • Letter of Request for Extension 101 102 191VAS 09 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2445, THE ASTOUND BROADBAND, LLC, FRANCHISE AGREEMENT, TO AMEND THE FRANCHISE TERM LANGUAGE AND PROVIDE FOR A ONE-YEAR EXTENSION OF THE FRANCHISE TERM; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council passed Ordinance No. 2445 on August 4, 2014, granting a five-year franchise to Astound Broadband, LLC, for the purposes of constructing and maintaining a telecommunications system in certain public rights -of -way in the City; and WHEREAS, Ordinance No. 2607, passed on June 17, 2019, authorized an extension of the franchise granted to Astound Broadband, LLC, for a one-year period, pursuant to Section 3 of Ordinance No. 2445; and WHEREAS, the franchise agreement has a current expiration of August 11, 2020; and WHEREAS, Astound Broadband, LLC, and the City desire an additional extension of the franchise to facilitate continued negotiation of a new franchise agreement; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance Amended. Ordinance No. 2445, §3, is amended to read as follows: Franchise Term. The franchise rights granted herein shall remain in full force and effect for a period of five years from the effective date of this ordinance. However, this Franchise Agreement shall not take effect and Astound shall have no rights under this Franchise Agreement unless a written acceptance with the City is received pursuant to Section 4 of this agreement. If Astound requests a Franchise renewal prior to the expiration date, the City may, at the City's sole discretion, extend the term of this Franchise Agreement fer up to one year in one-year incremeniz. beyond the expiration W: Legislative DevelopmentW,stound Broadband amendment and extension 7-23-20 EC:bjs Review and analysis by Barbara Saxton Page 1 of 4 103 date to allow processing of the renewal. If the City elects to extend the term of this Franchise Agreement, written notice of the extension shall be provided to Astound prior to the Franchise expiration date. Section 2. Franchise Term Extended. A one-year extension of the franchise for Astound Broadband, LLC, is hereby granted to allow for processing of a renewal franchise, thereby extending the current franchise term through August 11, 2021. Section 3. Acceptance of Terms and Conditions. The full acceptance of this amendment and extension to the Franchise Agreement and all the terms and conditions shall be filed with the City Clerk within 10 days of the effective date of this ordinance in the form attached hereto as Exhibit A. Failure on the part of Astound to file said consent within 10 days of the effective date of this ordinance shall void and nullify any and all rights granted under this Franchise Agreement. Section 4. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 5. Severability. If any section, subsection, paragraph, sentence, clause, or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity of constitutionality of the remaining portion of this ordinance or its application to any other person or situation. Section 6. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Allan Ekberg, Mayor . 2020. Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Legislative Development\Astound Broadband amendment and extension 7-23-20 EC:bjs Review and analysis by Barbara Saxton 104 Page 2 of 4 Office of the City Attorney Attachment: Exhibit A — Franchise Agreement Amendment and Extension Acceptance Form W: Legislative Development\Astound Broadband amendment and extension 7-23-20 EC:bjs Review and analysis by Barbara Saxton Page 3 of 4 105 EXHIBIT A Astound Broadband, LLC, Amendment and Extension Acceptance Form Date: City of Tukwila City Clerk's Office 6200 Southcenter Boulevard Tukwila WA 98188 Re: Ordinance No. , adopted on Dear City Clerk: In accordance with and as required by Section 3 of City of Tukwila Ordinance No. passed by the City Council and approved by the Mayor on (the "Ordinance"), Astound Broadband, LLC, hereby accepts the terms, conditions and obligations to be complied with or performed by it under the Ordinance. Sincerely, ASTOUND BROADBAND, LLC Signature Name: Title: Date: cc: TIS Director, City of Tukwila, 6200 Southcenter Blvd, Tukwila, WA 98188 W: Legislative DevelopmentW,stound Broadband amendment and extension 7-23-20 EC:bjs Review and analysis by Barbara Saxton Page 4 of 4 106 From: Joe Kahl <loe.kahl@rcn.net> Sent: Monday, January 6, 2020 1:52 PM To: Cyndy Knighton <Cyndy.Knighton @TukwilaWA.gov> Subject: Re: Astound Broadband City of Tukwila, WA Telecom Franchise Renewal Hi Cyndy, Happy New Year. As you know, the Telecom Franchise Agreement between the City of Tukwila and Astound Broadband, LLC was extended effective June 25th, 2019 to August 11th, 2020. We would like to extend the agreement an additional 5 years to August 11th, 2025. Is there anything needed from Astound Broadband at this point to begin the process for approval? Please let me know. Thanks, Joe Joseph Kahl Vice President, Regulatory and Public Affairs 650 College Road East, Suite 3100 Princeton, NJ, 08540 (609) 681-2184 (Direct Dial) (609) 306-0901 (Cell) joseph.kahlkrcn.net (E-mail) W_ * f�u� wave 107 s ASTOUND FIBER 1. EXISTING 2. AERIAL 3.UNDERGROUND s 112M s1 m S 4nn SI 168e'sl S14 n I 150n51 s 1515151 � s 152ntl 51 S 5i d p & y V i95 I � A .� SYana�S� Y S rrxk p r. 168r1 Sl >rtiY slvacrrnora a N z a WS �� Rrikler Bl AVnYIy v0 a �.. ..t upwd or i knra�e J l C.M. or Waal or F � sl it s,gal, ae.k o a. a N W E S Not to Scale Vicinity Map Disclaimer: The location of f—t— and boundaries are appmximate and are intended for reference only, Data is based on best information available. City of 1 City Council Transportation & Infrastructure Committee Meeting Minutes August 3, 2020 - 5:30 p.m. - Electronic Meeting due to COVID-19 Emergency Councilmembers Present: Cynthia Delostrinos Johnson, Chair; Verna Seal, Kate Kruller Staff Present: David Cline, Hari Ponnekanti, Han Kirkland, Gail Labanara, Joseph Todd, Joel Bush, Adam Cox, Ryan Larson, and Scott Bates Chair Delostrinos Johnson called the meeting to order at 5:32 p.m. I. BUSINESS AGENDA A. Ordinance: Astound Franchise 1-Year Extension Staff is seeking Council approval of an ordinance that will extend the franchise term with Astound Broadband, LLC to August 11, 2021 and allow for additional one-year extensions. Item(s) needing follow-up Provide an updated memo showing a map of the Astound coverage area, if the City can get a better deal on 1-net and continue negotiations to assist the City with coverage in underserved areas. Committee Recommendation Unanimous approval. Forward to August 10, 2020 Committee of Whole. B. Ordinance: Interim Flood Plain Management Staff is seeking Council approval of an ordinance to adopt interim Flood Plain Management regulations in compliance with FEMA requirements. Committee Recommendation Unanimous approval. Forward to August 10, 2020 Committee of the Whole. C. 42"d Avenue South Bridge Closure Committee members and staff discussed the recent three-day closure of the 42nd Avenue South Bridge, including lessons learned and improvements for future road/bridge closures. Committee Recommendation Discussion only. 109 110 COUNCIL AGENDA SYNOPSIS ---------------------------------- Initials Meeting Date Prepared b Mayors review Council review 08/10/20 BJM ITEM INFORMATION ITEM NO. 3.F. STAFF SPONSOR: B. MILES ORIGINAL AGENDA DATE: 8/ 10/ 20 AGENDA ITEM TITLE Tourism Funding: Tourism Promotion and Lodging Tax Briefing. CATEGORY ® Discussion Aftg Date 8/10/20 ❑ Motion g Date Alt ❑ Resolution Mtg Date ❑ Ordinance g Date Mt ❑ Bid Award Mtg Date ❑ Public Hearing g Date Aft ❑ Other Aft g Date SPONSOR ❑ Council ® Mayor ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ 1 S ❑ P&'R ❑ Police ❑ PlF SPONSOR'S In light of the COVID-19 pandemic's impact on the economy and role of tourism in business SUMMARY recovery, staff would like to provide an overview and background on how the City's uses the lodging tax and TPA funds. REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Com ® Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 8/3/20 COMMITTEE CHAIR: MCLEOD RECOMMENDATIONS: SPONSOR/ADMIN. Office of Economic Development COMMITTEE Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $N/A $N/A $N/A Fund Source: N/A Comments: N/A MTG. DATE RECORD OF COUNCIL ACTION 08/10/20 MTG. DATE ATTACHMENTS 8/10/20 Informational Memorandum, dated 05/20/20, REVISED, 07/27/20 Memo dated September 23, 2016, "'Permitted Uses of Lodging Tax Funds." Lodging Tax Six Year Financial Model, updated July 14, 2020. Tourism Funding at a Glance Minutes from the 8/3 PED Committee Meeting 111 112 TO: FROM: CC: DATE: SUBJECT City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Planning and Economic Development Brandon Miles, Business Relations Manager Mayor Ekberg May 20, 2020, Updated July 27, 2020 Tourism Funding Discussion ISSUE In light of the COVID-19 pandemic's impact on the economy and role of tourism in business recovery, staff would like to provide an overview and background on how the City's uses the lodging tax and TPA funds. This item was originally discussed at the June 1, 2020 PED meeting. Staff would like to continue the discussion and has included a new attachment. BACKGROUND Over the last 20 years the City Council has authorized the collection of two separate revenue sources for tourism funding. These revenue sources include the City's lodging lax and Tourism Promotion Area (TPA) fee. In 2019, in total just over $1.5 million of combined funds were collected through the lodging tax and TPA fee. In light of COVID-19 pandemic's impact on the overall economy and role of tourism in business recovery, staff would like to provide an overview and background on how the City's uses the lodging tax and TPA funds. Each of the two revenue sources is authorized under a separate RCW and each have specific limitations on how the funds can be used. Lodging Tax Statutory Authority Lodging tax (City's 101 Fund) is collected pursuant to RCW 67.28 and TMC 3.40. State law allows the City to collect 1 % on eligible stays in lodging businesses (hotels, extended stays, motels, bread and breakfasts, and Airbnbs). Certain stays for emergency housing and for any stay in a lodging business that exceeds 30-days are exempt from the tax. Like retail sales tax, the lodging tax is remitted by the lodging businesses to the Department of Revenue and the remitted back to the city two months after collection. Allowable Uses RCW 67.28.1818 limits the use of lodging tax funds as follows: "All revenue from taxes imposed under this chapter shall be credited to a special fund in the treasury of the municipality imposing such tax and used solely for the purpose of paying all or any part of the cost of tourism' promotion 2, acquisition of tourism relations facilities, or operation of tourism related -facilities. " ' RCW 67.28.080 defines `Tourism' as "economic activity resulting from tourists, which m ay includes sales of overnight lodging, meals, tours, gifts, or souvenirs." 2 RCW 67.28.080 (6) defines `Tourism Promotion' as "...activities, operations, and expenditures designed to increase tourism, including but not limited to advertisings, publicizing, or otherwise distributing information for the 113 INFORMATIONAL MEMO Page 2 RCW 67.28.1816 goes into further detail about permitted expenditures of lodging tax funds, specifying: "Lodging tax revenues under this chapter may be used, directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for. (a) Tourism marketing; (b) The marketing and operations of special events and festivals designed to attract tourists; (c) Supporting the operations and capital expenditures of tourism related facilities owned or operated by a municipality or public facilities district created under chapters 35.57 and 36.100 RCW; or (d) Supporting the operations of tourism related facilities owned or operated by nonprofit organizations described under 26 U. S. C Sec. 501(c)(3) and 26 U. S. C Sec. 501 (c)(6) of the internal revenue code of 1986, as amended. It is important to point out that RCW 67.28 provides no definition of "tourist." Historically, the City of Tukwila has defined as a "tourist" as someone who lives outside of Tukwila and visits the City, either for a day or to spend the night. Additionally, there is a common misconception that lodging tax funds can only be used to support activities that create "heads in beds" or travel more than 50 miles. Again, this is not a requirement of State law. While the City must report metrics, such as hotel stays and visitors, when using lodging tax funds. The funds do not have to be awarded to activities that solely generate hotel room nights. Under current state law, lodging tax funds cannot be used to support general city operations or activities. Attached is a memo presented to the City Council in 2016, which provides more details on allowable uses of lodging tax funds. Status of Fund As of May 7, 2020, there was $1.985 million in the City's lodging tax fund. In 2019, annual revenues for lodging tax collection was just over $800,000. With the sharp drop off in travel, the City is forecasting a significant drop off in lodging tax collection for 2020 and possibly for 2021. The City is contractually obligated through 2020 to provide Seattle Southside Regional Tourism Authority (SSRTA) $202,500 in lodging tax funds. Additionally, the City has two approved applications to the City's Parks and Recreation Department of $40,000 for art along Baker Blvd and $125,000 to help fund a master plan for Tukwila Pond'. There is no requirement that the lodging tax fund be spent down annually. Unspent funds will remain in the 101 fund and can be used in future years, subject to the use limitations outlined above. Historical Use of Funds The largest single recipient of lodging tax funds from the City over the last 18 years has been SSRTA. Until 2015, SSRTA was operated as Seattle Southside Visitor Service (SSVS) by the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operation tourism promotion agencies; and funding the marketing of or the operation of special events and festivals designed to attract tourist." 3 RCW 67.28.080 (1) provides the following definition of `Acquisition' "...siting, acquisition, design, construction, refurbishing, expansion, repair, and improvement, including paying or securing the payment of all or any portion of general obligation bonds, leases, revenue bonds, or other obligations issued or incurred for such purposes..." a The City also had an approved application and contract with the Seattle Seawolves, but this contract was canceled due to the COVID-19 pandemic. Virtual Sports also had an approved application and staff has not yet entered into a contract due to the scope of work being impacted by Stay Home, Stay Healthy Order. https://tukwilawa.sharepoint.com/sites/maVorsoffice/cc/Council Agenda Items/Mayor's Office/PED, August 3/Tourism Funding, Tourism Promotion and Lodging Tax/MEMO, Lodging Tax Policy, PED, 2020.06.01, Updated July 27.doc°Tukdata2k!2r t„ 114 INFORMATIONAL MEMO Page 3 City of Tukwila. The Museum of Flight, City of Tukwila, Starfire Sports, Renton Chamber of Commerce, and Seattle Southside Chamber of Commerce, and others have also received funding in the past. Any entity, including for -profit organizations, is eligible to receive lodging tax funds, provided it is engaged in activities eligible to be funded with lodging tax funds. State Law requires that any proposed use of lodging tax funds be review by a Lodging Tax Advisory Committee (LTAC). The City's LTAC comprises four lodging businesses; four entities eligible to receive lodging tax funds; and one City elected official, who serves as the Chair of LTAC. LTAC makes a recommendation to the City Council on whether an application should receive funding. The City Council has final authority in approving a request for lodging tax funds; however, the City Council cannot override a "no" from LTAC. The City Council can choose not to fund an entity that LTAC recommend be provided funding. The City Council can also change the amount of the funding, provided it provides the LTAC 30-days' notice of its intent to modify the amount. TPA Fee Statutory Authority Tourism Promotion Areas (TPA) are authorized under RCW 35.101. There is no corresponding City TMC for TPAs. Outside King County individual cities, towns, and counties can form their own TPAs. For most municipalities in King County, a TPA must include at least two municipalities (this requirement does not apply to the City of Federal Way). In 2014 the Cities of Tukwila, Des Moines, and SeaTac executed an interlocal agreement ("TPA ILA)" to form a TPA to cover the combined boundaries of the three cities. Through the TPA ILA the cities agreed that the City of SeaTac would serve as the legislative authority for the combined city area. The City of SeaTac is responsible for overseeing the TPA on behalf of the three cities. Any city can terminate its relationship under the TPA ILA Agreement by providing one-year notice to the other city partners. In 2014, after receiving a petition from hoteliers, the City of SeaTac formally adopted a resolution setting out a TPA fee in the three -city area. The total fee was $2 per night per eligible hotel stay in a hotel or motel with at least 90 rooms5. The $2 rate was the maximum permitted under the current State law. State law was recently amended to allow the rate to go up to $5 per night, provided 60% of the businesses that would pay the increase petition for the increase and it is approved by the legislative authority. Allowable Uses' RCW 35.101.130 states that the Legislative Authority, "...shall have sole discretion as to how the revenue derived from this charge is to be used to promote tourism promotion that increases the number of tourists to the area." `Tourism Promotion' is defined as, "...activities and expenditures designed to increase tourism and convention businesses, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting tourists, and operating tourism designation marketing organizations." 5 The TPA fee is a flat fee, while the lodging tax is a percentage. This allows the TPA to collect higher revenue than the lodging tax when rates are low. For example, a room at a hotel going for $100 a night would only provide $1 in lodging tax funds, while the TPA gets the full $2. 6 RCW 35.101 was amended by the last legislative session. These changes go into effect on July 1, 2020. Staff is discussing the RCW as it will be amended in July. httos://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's office/PED, August 3(Tourism Funding, Tourism Promotion and Lodging Tax/MEMO, Lodging Tax Policy, PED, 2020.06.01, Updated July 27.docU kdata2k12kG'ty Gnrnrn n, .C- mm,,. tmAn,;us.nne.,,,,oe,0016 der 115 INFORMATIONAL MEMO Page 4 Unlike the lodging tax RCW, the TPA RCW provides a definition of tourist'. A `tourist' means a person who travels for business or pleasure on a trip: (a) Away from the person's place of residence or business and stays overnight in paid accommodations; (b) To a place at least fifty miles away one way by driving distance from the person's place of residence or business for the day or stays overnight. However, island communities without land access are exempt from the mileage requirement under this subsection (5) (b); or (c) To another country or state outside of the person's place of residence or business. Status of Funds Following provisions in the Interlocal Agreement, all TPA funds remitted for the TPA go directly to SSRTA. In 2019, SSRTA received $3.96 million in TPA funds. Assuming that the TPA funds are generated proportional to the number of hotel rooms in each of the three TPA cities, Tukwila's portion of the TPA funds generated for SSRTA was just over $1.13 million, or 29%. In early 2020, SSRTA budgeted ending 2019 (unaudited) with an ending fund balance of $4.45 million. This includes both TPA funds it received, lodging tax funds received from the three cities, and misc. revenue. Historical Use of Funds As outlined above, 100% of the funds remitted for the TPA go directly to SSRTA. The City of Tukwila does not receive the funds. SSRTA uses these funds for tourism promotion activities and administration costs. Seattle Southside Regional Tourism Authority SSRTA is the City's primary destination marketing organization$. SSRTA mission is to help promote the Seattle Southside region (cities of Des Moines, Tukwila, and SeaTac) for tourism. In 2019, SSRTA had total operating expenditures of $4.297 million (See below). SSRTA is the successor to Seattle Southside Visitor Service (SSVS), which until 2015 was run as a division of Tukwila's Economic Development Office. The Cities of Des Moines and SeaTac were serviced by SSVS via interlocal agreements with the City of Tukwila. At one time the City of Kent was also served by SSVS but left in 2014. In 2012 the Cities of Tukwila, SeaTac, and Des Moines began to have conversations about forming a TPA, with the goal of providing additional funds for tourism promotion activities. These conversations were the result of requests by area hoteliers for the cities to consider creating a TPA. As discussed above, the cities entered an interlocal agreement in 2014 for the creation of a TPA. A TPA fee began to officially be collected in the spring of 2015. Through the TPA ILA, the cities of Tukwila, SeaTac, and Des Moines also provided a recommended amount of lodging tax funds each city would provide to SSRTA annually. The lodging tax contribution is a "recommended amount" and no City is contractually obligated to ' This definition goes into effect on July 1, 2020. httos:l/tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's office/PED, August 3/Tourism Funding, Tourism Promotion and Lodging Tax/MEMO, Lodging Tax Policy, PED, 2020.06.01, Updated July 27.doc4 kdata2k12kr'fi, Gnrnrn,,,�r mm,,. tmAn,;us.nne.,,,,oe,0016 a,,,. 116 INFORMATIONAL MEMO Page 5 provide the amount listed in the TPA ILA. The table below shows the suggested lodging tax contributions to SSRTA from the three TPA cities. httos:l/tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's office/PED, August 3/Tourism Funding, Tourism Promotion and Lodging Tax/MEMO, Lodging Tax Policy, PED, 2020.06.01, Updated July 27.docU kdat,2k"`G'ty Gnrnrn n, .C- mm,,. tmAn,;us A4pr ARPe O016 der 117 INFORMATIONAL MEMO Page 6 Year SeaTac9 Tukwila Des Moines10 2014 $835,000 $712,000 100% of lodging tax funds. 2015 $460,000 $405,000 2016 $383,333 $337,500 2017 $306,666 $270,000 2018 and beyond $230,000 $202,500 The TPA creation provided addition funds available for tourism promotion activities in the Seattle Southside region. The table below shows the total expenditures for SSVS and SSRTA since 2010. In 2016 the total expenditures for tourism promotion by SSRTA increased over 180% from the prior year. Year Total Expenditures (SSVS and SSRTA) % Change in SSVS and SSRTA Expenditures from previous year. Total Lodging Revenue in the Cities of Des Moines, Tukwila, and SeaTac. % Change in lodging revenue from previous year. 2010 $1,321,879 N/A $190,337,838 N/A 2011 $1,525,988 15.44% $201,068,568 5.64% 2012 $1,470,058 (3.67%) $217,520,038 8.18% 2013 $1,428,043 2.86% $230,190,887 5.83% 2014 $1,462,123 2.39% $259,819,652 12.87% 2015" $1,504,207 2.88% $292,605,392 12.62% 2016 $4,248,883 182.47% $302,062,920 3.23% 2017 $4,533,770 6.70% $318,864,960 5.56% 2018 $4,634,628 2.22% $330,574,999 3.67% 2019 $4,297,657 (7.27%) Data not yet available. N/A In March, SSRTA began projecting a significant revenue reduction of TPA fees because of the COVID-19 pandemic (see below). 9 The City of SeaTac has chosen to provide more funds to SSRTA than what was outlined in the TPA ILA. 10 The City of Des Moines no longer provides 100% of its lodging tax funds collected to SSRTA. " SSRTA did not take over the functions of SSVS until the end January 1, 2016. The expenditures provided for 2015 are Tukwila's expenditures for SSVS. httos://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's office/PED, August 3(Tourism Funding, Tourism Promotion and Lodging Tax/MEMO, Lodging Tax Policy, PED, 2020.06.01, Updated July 27.docU kdata2k12kG'ty Gnrnrn n, .C- mm,,. tmAn,;us.nne.,,,,oe,0016 der 118 INFORMATIONAL MEMO Page 7 Seattle 5outhside Regional Tourism Authority (RTA] Financial Pro Forma 2020-2022 2019 2019 2020 20ZO 2021 2022 Approved Approved Projection Projection projecticn Budget Year-end Actuals Budget (unaudited) Revenues 1 TPA Special Assessments 5 3,674,925 $ 3,963,260 $ 3,900,000 S 1,252,474 $ 3,170,608 S 3,368,771 2 LTC -Tukwila 202,500 202,SD0 202,S00 202,500 202,500 202,500 3 LTC-SeaTac 830,000 830,000 930,000 830,000 830,000 830,D0o 4 LTC -Des Moines 111,000 52,497 55,500 15,000 10,000 25,000 5 Interest Revenue 48,500 71,829 6S,000 22,500 6,000 7,5D0 6 Misr, Other Revenue 2,500 10,422 2,SOD 5,500 5,500 S,SDO 7 Advertising 7S,000 40,480 50,000 7,500 7,500 7,500 Total Revenues $ 4,944,325 $ 5,170,989 $ 5,105,500 $ 2,335,474 $ 4,232,108 $ 4,446,771 Expenditures 8 Salaries& Benefits $ 1,622,209 S 1,451,758 $ 1,630,500 $ 1,459,652 $ 1,465,000 $ 1,567,550 9 Supplies 31,000 14,197 15,000 10,000 13,Soo 14,DDO 10 Small Equipment 20,000 5,755 20,000 11,000 7,000 7,D0o 11 Professional Services/Ads/Prc m otio ns 2,200,000 2,013,177 2,323,000 2,098,250 2,100,000 2,200,000 12 Communications/Postage 81,000 36,088 41,000 30,000 33,000 36,D00 13 Travel 115,000 47,357 80,000 13,000 47,500 60,00o 14 Operating Leases 120,000 87,512 120,000 110,636 119,000 120,000 15 Insurance 12,000 10,611 12,000 11,00o 12,000 13,000 16 Maintenance 6,000 3,654 6,000 3,800 3,900 4,D00 17 Mfscellaneous/Printing 861,000 S89,609 7S1,000 530,000 600,000 675,D00 18 Capital -Digital Images 39,000 11,000 39,000 11,000 15,000 20,000 Total Operating Expenditures 5,107,209 4,270,718 5,037,590 4,288,338 4,415,90-0 4,716,550 19 Capital Outlay 100,000 26,938 68,000 20,000 25,000 23,000 Total Expenditures and Capital Outlay 5,207,209 4,297,657 5,105,500 4,308,338 4,440,900 4,739,550 20 Excess of Revenues over (under) expenditures (262,984) 873,333 - (1,972,864) (209,792) (292,779) Beginning Fund Balance $ 2,153,571 $ 3,582,569 $ 3,94Z,503 $ 4,455,902 $ 2,483,037 $ Z,Z74,246 Ending Fund Balance $ 1,890,687 $ 4,455,902 S 3,942,503 $ 2,483,037 $ 2,Z74,246 $ 1,981,467 Contingency Reserve (2 months) $ 968,042 $ 716,419 $ 939,751 5 714,966 $ 736,131 $ 786,249 Economic Downtum/Recession Reserve (11% of SA) $ 404,231 $ 435,959 $ 429,000 $ 137,772 $ 349,767 S 370,565 Capital Asset Replacement Reserve $ 110,000 S 110,076 $ 183,465 S 193,465 $ 183,465 S 183,465 Unassigned Balance $ 508,414 $ 3,193,449 $ 2,490,286 $ 1,446,934 $ 1,DD5,893 S 641,189 DISCUSSION Staff would like to start having discussions with the City Council and the hospitality community regarding some policy issues with tourism funding for the City of Tukwila. Staff has identified several issues, which are discussed below. Staff envisions that additional issues/questions could come as we move through this process. The goal is to get direction from the City Council on 2020 expenditure plans and the development of the 2021/2022 City budget. 1. Need for Strategic Focus for Lodging Tax and TPA Funds. In 2019, the City started to prepare a Six Year Financial Model for lodging tax (See Attached). While non -binding, the Financial Model is the City's first effort to strategically examine how lodging tax could be used to advance overall strategic initiatives. Given the changes due to the COVID-19 pandemic, staff seeks Council's direction on whether any of the potential projects in the Financial Model are no longer of interest or if other projects should be added. httos:l/tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's office/PED, August 3/Tourism Funding, Tourism Promotion and Lodging Tax/MEMO, Lodging Tax Policy, PED, 2020.06.01, Updated July 27.dccU kdata2k1mr'fi, Gnrn., An, .C-Arnr,,,n tmAn,;unf6A4prnARP,,nnt6 der 119 INFORMATIONAL MEMO Page 8 2. Lack of Marketing Efforts for Tukwila in the Greater Seattle Area. In 2017, the City of Tukwila engaged Bill Baker, a renowned destination brand consultant to guide the City in the development of a City brand12. Mr. Baker's work also included a significant discussion and survey on how people view the City within the Seattle region. This work included telephone surveys, online surveys, and focus groups. There was considerable discussion on the name the City should use to market itself. Name suggestions included, Southcenter, Tukwila, and Seattle Southside. Through Mr. Baker's work the City determined that the "Tukwila" name had strong brand identification within the Seattle area. Mr. Baker's work completed work including the development of a brand strategy, brand blueprint, and brand style guide. The City Council formally adopted Mr. Baker's brand recommendations in 2018. Since 2018 staff has been working on efforts to market Tukwila within the Greater Seattle area, generally within 50 miles of the City. These efforts have primarily included sponsoring events, such as the Rave Green Run and Food Truck Rodeo at Westfield Southcenter. As part of the COVID-19 response, the City quickly launched social media channels to help promote businesses open and to help highlight resources available to businesses. The City should consider other opportunities to promote itself, specifically the City should consider the development of a website focused on visitors and business attraction; limited ad buys; and ongoing public relations outreach. 3. Tourism Promotion versus Destination DeveloDment Historically the City has provided lodging tax funds for initiatives and activities that are focused more on tourism promotion and have not provided lodging tax funds for destination development. Examples of tourism promotion activities include funding for marketing and sales. Destination development includes capital projects and developing/sponsoring festivals and events to be held in the City. In 2019, the City began to take steps to begin to develop the destination by awarding funds complete a master plan for Tukwila Pond and to install art along Baker Blvd. Other possible examples of destination development including the creation of a Riverwalk along the Green River and installation of wayfinding signage. The City also launched the Tukwila International Food Truck Rally last year in partnership with Westfield Southcenter. Given the differences between the allowable uses between lodging tax funds and TPA funds, the City may want to consider creating distinction between how the funds can be used with regards to tourism promotion and destination development. Tourism promotional activities, such as what SSRTA is providing, generally are for tourism promotion and marketing activities. Given that well over $3.5 million of funds are being provided for tourism promotion to SSRTA via the TPA funds, the City should consider how lodging tax funds can be used for destination development. As a reminder, lodging tax funds can be used for capital projects and the City can also bond against the future lodging tax funds. " This "brand" is for tourism and economic development use only and is not a City brand. httos://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's office/PED, August 3(Tourism Funding, Tourism Promotion and Lodging Tax/MEMO, Lodging Tax Policy, PED, 2020.06.01, Updated July 27.docU kdata2k12kr'fi, Gnrnrn,,,�r mm,,. tmAn,;us.nne., ARPe 0016 dAA 120 INFORMATIONAL MEMO Page 9 4. Lack of other organizations doing tourism promotion and tourism development activities, such as downtown associations and neighborhood groups. One of the biggest tourism limitations in the City of Tukwila is the lack of our organizations that are directly or indirectly involved in tourism promotion and destination development in the region. Take for example Pioneer Square, which has Visit Seattle, the Downtown Association, Seattle Chamber, and the Pioneer Square Association all engaged in some tourists related activities. Having a variety of organizations working on tourism development issues would strengthen the City's overall tourism appeal. For example, the Pioneer Square Association works on developing art in the Pioneer Square District (destination development), which Visit Seattle uses as content for its tourism promotion activities. When other organizations do destination development and tourism promotion they directly and indirectly market the City. For example, Destination Des Moines promotes Des Moines via videos and events as does Discover Burien. The City of Tukwila lacks these types of organizations; thus the City has tried to fill the void. 5. Leveraging Lodginq Tax Funds to Obtain Grants. Another option the City should consider is using lodging tax funds as match to obtain federal and state grants for infrastructure projects that support tourism. 6. The Need for More Varied Use of Lodging Tax Funds. Many cities award a large number of smaller lodging tax grant applications for activities occurring in their cities. For example, the City of Renton, which historically collects less lodging tax funds than Tukwila, regularly has upwards of 20 applications per year for lodging tax funds. These applications are often for small amounts to support small events, festivals, and activities. Smaller activities help to develop a destination and help to create a distinct and unique visitor experience. Economic Development staff has been working to attract other groups to the City and to help existing groups explore securing lodging tax funds for eligible activities. 7. Using Lodging Tax Funds for Business Attraction The City's Economic Division is funded primarily from the City's general funds. Starting in 2019, some labor costs in Economic Development were funded by lodging tax funds. Some cities use lodging tax funds to help marketing the City for business attraction. Given that many guests in Tukwila hotels are business travelers there is a strong argument that increased economic activity from business attraction woudl bring more overnight guests (business travelers) to the City. Note, staff has not engaged legal on the question of whether lodging tax funds could be used for business attraction. Additionally, the City could also provide funds to the Chamber of Commerce in order to help it with its mission of supporting area businesses and attracting businesses to the City. 8. Lack of Metrics to Track Success The City lacks metrics to follow to track success of the lodging tax program and TPA. FINANCIAL IMPACT httos://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's office/PED, August 3/Tourism Funding, Tourism Promotion and Lodging Tax/MEMO, Lodging Tax Policy, PED, 2020.06.01, Updated July 27.docU kdat,2k!2kG'tyGnrnrn n, .C- mm,,. tmAn,;us.nne., ARPe O016 der 121 INFORMATIONAL MEMO Page 10 None. RECOMMENDATION This is for discussion only. Staff would like to have ongoing discussions with the Committee and create recommendations to take the full Council for policies on the use of lodging tax and TPA funds. ATTACHMENTS • Memo dated September 23, 2016, "Permitted Uses of Lodging Tax Funds." Lodging Tax Six Year Financial Model, updated July 14, 202() • Tourism Funding at a Glance- httos:l/tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's office/PED, August 3/Tourism Funding, Tourism Promotion and Lodging Tax/MEMO, Lodging Tax Policy, PED, 2020.06.01, Updated July 27.doc4 kdata2k12kG'ty Gnrnrn,,,�r mm,,. tmAn,;us A4pr ARPe 0016 dAA 122 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Safety Committee FROM: Brandon J. Miles, Business Relations Manager CC: Mayor Ekberg DATE: September 23, 2016 SUBJECT: Permitted Uses of Lodging Tax Funds. ISSUE The City charges a 1 % special excise tax on the sale of or charge made for overnight lodging stays. State law limits how these funds can be used. This memo outlines the limits on the use of lodging tax and discusses permitted and prohibited use of the funds'. BACKGROUND Revised Code of Washington (RCW) 67.28.1815 limits the use of lodging tax funds as follows: [A]II revenue from taxes imposed under this chapter shall be credited to a special fund in the treasury of the municipality imposing such tax and used solely for the purpose of paying all or any part of the cost of tourism2 promotion 3, acquisition of tourism -related facilities, or operation of tourism -related facilities. RCW 67.28.1816 goes into further detail about permitted expenditures of lodging tax funds, specifying: Lodging tax revenues under this chapter may be used, directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for. - (a) Tourism marketing; ' RCW 67.28 places strict limits on the type of entities eligible to receive lodging tax funds. Additionally, approving expenditures of lodging tax funds is a two-step process, requiring review by the City's Lodging Tax Advisory Committee and City Council. State Law gives considerable authority to the City's Lodging Tax Advisory Committee in reviewing and approving funding requests. For more information on entities eligible to receive funding and the process for awarding funds, see the memo dated September 22, 2016, entitled, "Lodging Tax Approval Process." 2 RCW 67.28.080 defines "Tourism" as "economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs." 3 RCW 67.28.080 (6) defines "Tourism promotion" as "...activities, operations, and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding the marketing of or the operation of special events and festivals designed to attract tourists." 4 RCW 67.28.080 (1) provides the following definition of "Acquisition" ..."includes, but is not limited to, siting, acquisition, design, construction, refurbishing, expansion, repair, and improvement, including paying or securing the payment of all or any portion of general obligation bonds, leases, revenue bonds, or other obligations issued or incurred for such purpose or purposes under this chapter." 123 INFORMATIONAL MEMO Page 2 (b) The marketing and operations of special events and festivals designed to attract tourists; (c) Supporting the operations and capital expenditures of tourism -related facilities5 owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW; or (d) Supporting the operations of tourism -related facilities owned or operated by nonprofit organizations described under 26 U. S. C. Sec. 501(c)(3) and 26 U. S. C. Sec. 501(c)(6) of the internal revenue code of 1986, as amended. DISCUSSION Several Councilmembers have inquired about permissible uses of lodging tax funds. Based upon the limitations outlined above, staff would like to provide some guidance on the future use of lodging tax funds. A simple question that can be asked to help determine if lodging tax funds can be used is "Is the activity, operation or expenditure designed to increase tourism or welcome tourists to the City?" If the answer is yes, then lodging tax might be able to be used after further analysis of the specific funding request. Tourism could include people who travel and stay overnight in the City (overnight visitors) or those who travel to the Tukwila for the day (day visitors). Economic activity from Tukwila residents would not be considered tourism. The following lists examples of activities, operations and expenditures that would likely be eligible for lodging tax funding. This is not intended to be an exhaustive list. • Marketing and advertising intended to bring overnight visitors to the City. • Marketing and advertising intended to bring day visitors to the City. • Installation of new "way finding" signs for tourists and installation of City identification signs. • Sponsoring, operating, and marketing of special events or festivals, either by the City or third parties, if designed to bring tourists to the City. • Installation of banners on street poles or across city streets if either welcoming tourists to the City or promoting upcoming events. • Capital improvements, such as park improvements or trail improvements, designed to be used primarily by tourists. • Maintenance of parks primarily used by tourists, such as Fort Dent Park or the Green River trail. 5 RCW 67.28.080 (7) defines "Tourism -related facility" as, "...real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor that is: (a)(i) Owned by a public entity; (ii) owned by a nonprofit organization described under section 501(c)(3) of the federal internal revenue code of 1986, as amended; or (iii) owned by a nonprofit organization described under section 501(c)(6) of the federal internal revenue code of 1986, as amended, a business organization, destination marketing organization, main street organization, lodging association, or chamber of commerce and (b) used to support tourism, performing arts, or to accommodate tourist activities." 124 C:\Users\Brandon-m\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\LWDZNIVO\Memo 2 Eligable Activites.dou INFORMATIONAL MEMO Page 3 • Supporting marketing and operations of government entities (City of Tukwila and SSRTA) or nonprofit organizations, when activities performed are designed to attract tourists to the City or welcome tourists to the City. The following lists examples of activities, operations and expenditures that would likely NOT be eligible for lodging tax funding. This list is not intended to be exhaustive. • Funding basic general governmental operations of the City6 • Marketing and advertising directed at residents. • Way finding signs in residential areas intended for residents. • Sponsoring of special events or festivals intended for residents. • Capital improvements, such as park improvements, intended for residents (such as at parks used primarily by residents). • Maintenance of parks primarily used by residents, such as Hazelnut Park. • Capital expenditures for tourism related facilities owned or operated by a non-profit. Reportinq Requirements RCW 67.28.1816 requires that entities receiving lodging tax fund report metrics back to the municipality. Per State Law, the following is required to be submitted to the City in the project close out for a specific funding request: 1. Actual number of people traveling for business or pleasure on a trip. 2. Number of people traveling for business and pleasure and staying in paid accommodations in the City. 3. Visitors who traveled more than 50 miles or more from their place of residence of businesses for the day or staying overnight. 4. Visitors who traveled from another county or state. It is important to note that the City's Lodging Tax Advisory Committee is granted significant authority by RCW 67.28.1816 when reviewing lodging tax requests. The City Council cannot reverse a decision of the Committee if the Committee chooses not to approve a specific funding application. Traditionally, the Committee has considered the metrics outlined above very strongly when considering funding requests. RECOMMENDATION Information and discussion only. Forward to the October 10, 2016 Committee of the Whole meeting for discussion by the full Council. ATTACHMENTS • None. 6 The City is permitted to charge special funds, like the lodging fund, for costs incurred by the general fund to support the special funds. C:\Users\Brandon-m\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\LWDZNIVO\Memo 2 Eligable Activites.docx 125 126 DRAFT, DISCUSSION ONLY Lodging Tax Six Year Financial Plan Revenue Year Orginal Estimated Amount Forecasted Actuals 2019 2020 Budget 12020, Updated 2021 2022 2023 2024 $ 800,000 1 $ 800,000 $ 840,000 $ 882,000 $ 926,100 $ 972,405 Lodging Tax Collection (Revised, 5/7/20) $ 819,095 $ 800,000 Expenses Marketing, Sales, Major Sponsorships Contracted DMO Services $ 202,500 $ 202,500 SSRTA Emergency Funding $ 75,000 Major Sponsorships Funding Request $ 150,000 $ 150,000 Seattle Seawolvs Seattle Southside Chamber of Commerce $ - Virtual Sports $ 30,000 Small Event Development and Support $ 10,000 $ 15,000 Digital Development and Website (Experience Tukwila) $ - $ 88,375 SavingLocalKC.com $ 154,170 Destination Development Wayfinding Plan Development and Installation $ - $ 50,000 Southcenter Art I nvestements $ 600 $ 39,400 Tukwila Pond $ - $ 125,000 World Cup Planning and Activiation $ - $ - Adminstration/Operations Salary $ 58,040 $ 56,586 Benefits $ 18,124 $ 18,411 City Overhead Charge $ 18,741 $ 19,416 Adminstration Expenses $ 21,385 $ 30,000 $ 116,290 Total Expenditures: $ 479,390 $ 1,053,858 Starting Year Balance: $ 1,617,625 $ 1,957,330 Ending Fund Balance: $ 1,957,330 $ 1,703,472 Totals 1 $ 400,000 $ 450,000 $ 600,000 $ 700,000 $ 800,000 $ 4,569,095 $ 202,500 $ 202,500 $ 202,500 $ $ 75,000 $ 50,000 $ 150,000 $ 150,000 $ $ 10,000 $ 50,000 $ 5,000 $ 15,000 $ 15,000 $ $ 88,375 $ 50,000 $ 50,000 $ $ 154,170 $ 100,000 $ 150,000 $ 100,000 $ $ 39,400 $ 75,000 $ 75,000 $ $ 125,000 $ 200,000 $ 200,000 $ $ 40,000 $ 40,000 $ $ 53,870 $ 58,284 $ 60,032 $ $ 18,411 $ 18,963 $ 19,532 $ $ 19,416 $ 19,998 $ 20,598 $ $ 30,000 $ 30,000 $ 30,000 $ $ 1,021,142 $ 1,009,745 $ 962,663 $ $ 1,957,330 $ 1,336,188 $ 776,443 $ $ 1,336,188 $ 776,443 $ 413,780 $ 202,500 $ 202,500 $ 1,417,500 150,000 $ 150,000 $ 950,000 15,000 $ 15,000 $ 90,000 50,000 $ 50,000 $ 376,750 100,000 $ 100,000 $ 600,000 75,000 $ 75,000 $ 379,400 200,000 $ 200,000 $ 1,050,000 50,000 $ 50,000 $ 180,000 61,833 $ 63,688 $ 412,333 20,118 $ 20,722 $ 134,281 21,216 $ 21,853 $ 141,239 30,000 $ 30,000 $ 201,385 975,668 $ 978,763 $ 5,932,888 413,780 $ 138,112 138,112 $ (40,650) Notes Salary for Bus Manager is split 50/50 between general fund and lodging tax. Salary savings reflects credit to lodging tax for 14 furlough days for 2020. Revenue Increase (2021-2024) 0.05 Salary is assumed to rise 3% per year. 0.03 Benefits are assuemd to rise 3% per year. 0.03 Indirect Cost Allocation is assumed to increase 3% per year. 0.03 This document does not bind the City to provide funds nor does it authorize any funding. All use of lodging tax funds must be approved by LTAC and the City Council through an application process. Overhead charge is charged to all special accounts and recoups the cost of the general fund to support the lodging tax fund. This include facilities, IT services, legal, and accounting. Cells in yellow show pending applications. Cells in green show approved applications. 4 Cells in red are budgeted items that have not been encumbered. 7/14/2020 BJ M 128 Tukwila Tourism Funding at a Glance Tukwila's tourism is funded by two separate revenue sources — the City's lodging tax and the Tourism Promotion Area (TPA) fee. Jointly, these funds promote our many attractions and help welcome tourists to the City. Lodging Tax vs. TPA Fee LODGING Statutory Authority: Tukwila Municipal Code 3.40 Interlocal Agreement (ILA) between Tukwila, SeaTac, and Des Moines How charges are calculated: Total funds collected from Tukwila properties in 2019: Where do the funds go? Does the City Council control the funds? 1% of eligible stay in all city hotels, motels, and Airbnb's Ex. $100 room rate=$1 charge $819,000 The City's 101 fund for tourism -related expenditures Yes (Subject to the City's Lodging Tax Advisory Committee approval) $2 per night per room of eligible stays only in motels and hotels with 90 or more rooms Ex: $100 room rate=$2 charge $1,149,000 (estimate) The Seattle Southside Regional Tourism Authority (SSRTA) which promotes tourism in Tukwila, Seatac, and Des Moines No (Modification of Interlocal Agreement (ILA) required) Can the tax and fee be repealed? Yes. The standard process for modifying Yes. The City can opt out of the Interlocal the Tukwila Municipal Code applies Agreement (ILA) with one year's notice How Funds Can Be Used Promotion and marketing to bring tourists that live greater than 50 miles away? Promotion and marketing to bring tourists that live within 50 miles of the City? Marketing special events? Operations and expenditures related to facilities owned or operated by a municipality or public facilities district? Supporting the operations of tourism -related facilities owned or operated by a nonprofit organization? Examples of how we use the funds: Yes Yes Yes 1Z Yes Yes SavingLocalKC, Experience Tukwila, Starfire Sports, Museum of Flight, Seattle Southside Regional Tourism Authority, Seattle Seawolves, Tukwila International Food Truck Rally Yes No (Effective July 1, 2020) Yes (provided the funds are used to bring in tourist from greater than 50 miles) one No Support the Seattle Southside Regional Tourism Authority (SSRTA) which promotes tourism in Tukwila, SeaTac, and Des Moines 129 Tukwila Tourism Funding at a Glance Tukwila's Relationship with the Tourism Promotion Area (TPA) and Regional Tourism Authority (RTA) IT t.ity nas agreement Tourism for lodging tax funds, Promotion $202,500 for 2020 Area City of TOFWukwila $39,632 Des Moines Per ILA, TPA funds go directly to SSRTA, $3,963M for 2019 City of City of SeaTac is responsible for overseeing the Tourism promotion area through ILA Lodging Tax Funds (Actuals) Source for 2019 $830,000 SeaTac $202,500 Tukwila $52,497 Des Moines Estimated TPA Fee TukwilaWA.gov 130 Planning & Economic Development Committee Minutes.......................................................................................August3, 2020 D. Tourism Promotion & Lodging Tax Briefing Staff provided an overview on the City's use of lodging tax and Tourism Promotion Area funds and the distinctions between them. Committee Recommendation Forward to August 10, 2020 Committee of the Whole. E. "Experience Tukwila" Performance Measures Staff briefed the Committee on performance measures and key performance indicators for the "Experience Tukwila" social media campaign. Committee Recommendation Discussion only. MISCELLANEOUS The meeting adjourned at 6:43 p.m. Committee Chair Approval Minutes by LH 131 132 COUNCIL AGENDA SYNOPSIS ----------------------------------Initials Meeting Date Prepared by Mayors review Council review 08/10/20 JCW ITEM INFORMATION ITEM NO. 3.G. STAFF SPONSOR: ALLAN EKBERG ORIGINAL AGENDA DATE: 8/ 1012020 AGENDA ITEM TITLE Fire Department 6 month Budget Report CATEGORY ® Discussion Mtg Date 08/10/20 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ® Mayor ❑ HR ❑ DCD ❑ Finance ® Fire ❑ TS ❑ P&R ❑ Police ❑ PW1' SPONSOR'S The Council adopted budget provisos for the Fire Department in Dec 2019: One condition SUMMARY was for the Mayor and City Administrator to present along with the Fire Chief a 6 month report concerning the Budget report for the Fire Department. This report covers Jan -June 2020 and provides projections for the rest of 2020. REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ® Finance Com ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 07/27/20 COMMITTEE CHAIR: SEAL RECOMMENDATIONS: SPONSOR/ADMIN. Mayor / City Administrator / Fire Department COMMITTEE Discussion only / Forward to COW COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0 $0 $0 Fund Source: NA Comments: NA MTG. DATE RECORD OF COUNCIL ACTION 08/10/20 MTG. DATE ATTACHMENTS 08/10/20 FD 6 Month Informational Memorandum dated 7120/20 FD 6 month Budget & Forecast 2020 Report- Power Point (updated after Finance) FD 1st Quarter Informational Memorandum dated S/20/20 Minutes from the 07/27/20 Finance Committee meeting 133 134 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Tukwila City Council FROM: Allan Ekberg, Mayor, David Cline, City Administrator Jay C. Wittwer, Fire Chief BY: Jay C. Wittwer, Fire Chief CC: Laurel Humphrey, Council Analyst DATE: 07/20/2020 SUBJECT: Fire Department 6 Month Budget Report CURRENT STATUS The Fire Department has met budget projections for the first 6 months of the year regarding expenditures for the 2020 budget year. The Fire Department has met the total adopted budget for Jan 1 to June 30, reflected at 50%. Overtime use is tracking ($77,802) under projected budget as of June 30, 2020. The Fire Department is projected to be at or below budget when the final 2020 budget report is provided by the Finance Department. BACKGROUND The attached 1st Quarter report provides the background regarding this 6 month Fire Department report. DISCUSSION 2nd Quarter Financial Update through June 2020 As the attached report shows, the Fire Department is projected to be within the Adopted 2020 Budget if current expenditure patterns continue. From January to June 2020, the Fire Department had spent approximately 33% of its allocated budget. This has been accomplished through a collaborative process of the full Fire Department Administrative Team as described in the 1 st Quarter report and efforts outlined below. Overtime Usage A key change in the Fire Department was the reduction in overtime usage from January to June 2020 as compared to 2019. As the charts show below, the Fire Department had already instituted changes to its overtime usage in 2020, which caused significant savings. Due to the impacts of COVID-19 and the "Stay Home, Stay Healthy" order, there was an expectation of reduced revenues as well as reduced calls for service. The first phase of citywide operational reductions included a directive of no overtime without prior authorization of the Mayor. For the Fire Department, this meant not using overtime when there is an unscheduled leave and to staff an aid car at Fire Station 52 rather than an engine. This change has resulted in additional savings. It should be noted that if staffing falls below 12, then overtime is incurred to maintain minimum staffing of 12. Throughout 2019, the average overtime usage per month was $59,629. On average, of this $59,629 monthly overtime cost, $36,342 was for minimum staffing. In 2020, the average monthly overtime usage in the 1 st quarter (Jan -Mar) had decreased to $35,478, and by the 2nd quarter (Apr -June) this had decreased to $10.048 per month. For the year (Jan -June) the average monthly overtime usage has averaged $22,764. Page 1 of 2 135 If this trend continues the Fire Department will be within the Council's Adopted Budget for overtime. The Fire Department has worked diligently in 2020 to stay within the Council's adopted budget. After 6 months in 2020, the Fire Department has only used 25.5% of its allocated budget for overtime. If this rate is sustained, overtime usage for 2020 will be on or below budget. The month of July has sustained an increase in minimum staffing overtime, so that daily staffing levels remain at 12 per shift. This is due to an increase in sick leave usage causing unscheduled overtime. The Fire Department Management Team is committed to monitoring the occurrences of overtime. FINANCIAL IMPACT With these changes to the Fire Department budget tracking and adjustment efforts, the overall goal is to better track costs and to bring the ending fund balance for the Fire Department 2020 budget within the adopted budget as approved by the City Council. These tracking efforts will bring clarity to the City Council concerning the status of service levels and the Fire Department Budget. RECOMMENDATION This is for discussion only, forward to the COW and submitted in response to the 2019 Budget Proviso. ATTACHMENTS • FD 6 Month Budget and Forecast Report Power Point • FD 1st Quarter Informational Memo (includes overtime reports for December 2019 and April 2020 and May 6, 2020 Proviso response) Page 2 of 2 136 FI�R�E Tukwila Fire Department 6 Month Budget and Forecast Report zoo (A) 00 Contents • 2020 Forecast vs Budget • 2020 Overtime Report Dollars and Hours • 2020 Revenues • Goals for the year Fire zozo Forecast vs Budget � • Department projected to be within Original 2020 Adopted Budget • Operational Changes in Overtime have been main cost savings • Reduced costs for minimum staffing • Reduced overtime costs for training and other activities • First six months averaging $22K/month in overtime, • Concerns -July projected at $50K/month - increase in Sick Leave • Salaries/Benefits overbudget- pipeline, academy &retirements • Supplies below budget due to budget scrub • Covid-19 Financial Savings have been accounted for in O/T &Supplies • Additional Savings —Capital/Knox Box (shown) &Fleet (not shown) O Fire 202o Forecast vs Budget Fire's 2020 Forecast vs Budget Adiusted YTDActuals Full Year Forecasts Forecasted Variance from Budget Ad' Budget Variance Updated July 22ad 2020 Jan -June %Budget Forecast Printed Budget Over/(Under) Deviation% C39Budget Adj Adjusted Budget Over/Under Deviation% Regular Salaries & Wages $ 3,970,602 51.8% $ 7,855,952 $ 7,666,823 $ 189,129 2.5% $ - $ 7,666,823 $ 189,129 2.5% Extra Labor $ - - $ 5,508 $ $ 5,508 - $ - $ - $ 5,508 - Total Overtime $ 136,582 25.5% $ 286,582 $ 534,64 $ (248,066) -46.4% $ (150,000) $ 384,648 $ (98,066) -25.5% Holiday Pay $ 2,641 0.9% $ 252,641 $ 295,454 $ (42,813) -14% $ - $ 295,454 $ 8,400,683 $ 8,496,92 $ (96,242) -1% $ (150,000) $ 8,346,925 $ 53,758 1% TOTAL SALARIES & WAGES $ 4,109,825 48.4% FICA $ 69,450 33.2% $ 146,360 $ 208,95 $ (62,596) -30% $ $ 208,956 Pension - LEOFF $ 275,201 61.7% $ 541,001 $ 446,274 $ 94,727 21% $ - $ 446,274 $ 94,727 21% Pension - PERS $ 16,414 32.1% $ 39,943 $ 51,12 $ (11,186) -22% $ - $ 51,129 Industrial Insurance $ 217,851 51.5% $ 383,813 $ 422,61 $ (38,806) -9% $ - $ 422,619 $ (38,806) -9% Medical, Dental, Life, Optical $ 827,771 53.5% $ 1,583,490 $ 1,548,497 $ 34,993 2% $ - $ 1,548,497 $ 34,993 2% VEBA6 RMP $ 15,000 N/A $ 33,000 $ $ 33,000 - $ - $ - $ 33,000 - PERSONNEL BENEFITS $ 1,421,687 53.1% $ 2,727,606 $ 2,677,475 $ 50,131 1.9% $ - $ 2,677,475 $ 50,131 1.9% TOTAL SALARY & BENEFITS $ 5,531,512 49.5% $ 11,128,289 $ 11,174,4 $ (46,111) -0.49/ $ (150,000) $ 11,024,400 $ 103,889 0.9% Jan -May Adjustments Adjustments Office & Operating Supplies $ 48,465 23.4% $ 174,465 $ 206,87 $ (32,412) -16% $ (25,000) $ 181,877 $ (7,412) -4% Small Tools & Minor Equipment $ 29,232 33.5% $ 43,232 $ 87,26 $ (44,036) -50% $ (36,000) $ 51,268 $ (8,036) -16% SUPPLIES & SMALL TOOLS $ 77,697 26.4% $ 217,697 $ 294,14 $ (76,448) -26% $ (61,000) $ 233,145 $ (15,448) -7% Professional Services $ 49,534 61.2% $ 118,534 $ 81,000 $ 37,534 46% $ (4,000) $ 77,000 $ 41,534 54% Dispatching Services - Dispatching $ 76,437 34.4% $ 229,310 $ 221,945 $ 7,365 3% $ - $ 221,945 $ 7,365 3% Communication $ 14,375 44.7% $ 32,435 $ 32,17 $ 265 1% $ - $ 32,170 $ 265 1% Travel $ 468 6.7% $ 2,218 $ 7,00 $ (4,782) -68% $ (7,000) $ - $ 2,218 - Operating Rentals & Leases - Non Fleet $ 3,680 96.8% $ 8,832 $ 3,800 $ 5,032 132% $ - $ 3,800 $ 5,032 132% Operating Rentals & Leases - Fleet $ 135,490 20.8% $ 650,351 $ 650,35 $ - 0% $ - $ 650,351 $ - 0% Insurance(WCIA) $ 173,213 86.6% $ 173,213 $ 199,92 $ (26,709) -13% $ - $ 199,922 $ (26,709) -13% Public Utility $ 47,049 64.1% $ 99,549 $ 73,360 $ 26,189 36% $ - $ 73,360 $ 26,189 36% Repairs & Maintainance $ 19,869 53.8% $ 53,469 $ 36,921 $ 16,548 45% $ - $ 36,921 $ 16,548 45% Miscellaneous $ 32,363 22.5% $ 131,571 $ 143,87 $ (12,303) -9% $ (14,500) $ 129,374 $ 2,197 2% SERVICES $ 552,477 38.1% $ 1,499,482 $ 1,450,343 $ 49,139 3% $ (25,500) $ 1,424,843 $ 74,639 5% Capital Purchases (Machinery& Equipment) $ 5,495 2.7% $ 5,495 $ 200,00 $ (194,506) -97% $ - $ 200,000 $ (194,506) -97% TOTAL OPERATING EXPENSES $ 635,669 32.7% $ 1,722,673 $ 1,944,488 $ (221,815) -11.4% $ (86,500) $ 1,857,988 $ 135,315 -7.3% GRAND TOTAL $ 6,167,181 47.0% $ 12,850,962 $ 13,118,888 $ (267,926) -2.0% $ (236,500) $ 12,882,388 $ 31426 -0.2% Report by Jake Berry Fire 202O 1st & 2nd Qrt Overtime i Dollars FD 2020 Overtime (S) Overtime Project Name ACADEMY ID RUN January February March April May June YTD Total %Total $/hr $ 2,537 $ 478 $ 3,015 2% $ 86.76 $ 272 $ 215 $ 487 0% $ 62.90 IRPAK MAINTENANCE/SCBA $ 408 $ 833 $ 680 $ 1,922 1% $ 68.04 CALL BACK $ 436 $ 277 $ 713 1% $ 79.23 ITY MEETING $ 945 $ 79 $ 1,024 1% $ 74.47 ONTRACTOR BILLABLE OT $ 2,024 $ 1,557 $ 3,063 $ 698 $ 1,162 $ 8,495 6% $ 78.66 DEPARTMENT MEETING $ 3,853 $ 178 $ 396 $ 436 $ 238 $ 5,101 4% $ 77.00 EXPLORERS $ 248 $ 248 0% $ 70.82 FIRE INVESTIGATION $ 352 $ 1,629 $ 1,123 $ 857 $ 1,031 $ 988 $ 5,980 4% $ 102.65 FIRE PREVENTION OT $ 3,608 $ 2,744 $ 6,352 5% $ 92.74 INSTRUCTOR $ 527 $ 1,066 $ 136 $ 1,729 1% $ 72.79 INSTRUCTOR -CBT $ 1,380 $ 1,380 1% $ 58.72 INSTRUCTOR -JATC $ 226 $ 1,467 $ 1,694 1% $ 61.59 INSTRUCTOR -RESCUE $ 1,048 $ 1,048 1% $ 89.16 INSTRUCTOR - TRUCK ACADEMY $ 527 $ 2,856 $ 3,383 2% $ 65.06 ATC $ 230 $ 879 $ 1,108 1% $ 48.18 MINIMUM STAFFING -'A' SHIFT $ 9,849 $ 11,909 $ 11,326 $ 2,825 $ 35,909 26% $ 64.91 MINIMUM STAFFING -'B' SHIFT $ 2,903 $ 6,323 $ 4,431 $ 900 $ 1,467 $ 16,025 12% $ 65.14 MINIMUM STAFFING -'C' SHIFT $ 5,368 $ 182 $ 1,654 $ 84 $ 102 $ 7,389 5% $ 76.77 vertime (COVID-19 Related) $ 8,015 $ 8,015 6% $ 75.80 PHONE CALL OT $ 32 $ 100 $ 44 $ 176 0% $ 78.16 PROGRAM/EQUIPMENT SUPPORT $ 34 $ 34 0% $ 68.04 PUBLIC SAFETY BOND $ 399 $ 2,162 $ 889 $ 34 $ 11115 $ 602 $ 5,201 4% $ 70.76 PUBLIC SAFETY COMMITTEE MEETING $ 293 $ 293 0% $ 58.56 SHIFT EXTENSION (CALL) $ 361 $ 295 $ 139 $ 333 $ 270 $ 207 $ 1,606 1% $ 63.60 SHIFT EXTENSION (REPORT) $ 165 $ 129 $ 167 $ 29 $ 490 0% $ 65.35 SPECIAL ASSIGNMENT $ 86 $ 842 $ 929 1% $ 64.04 SPECIAL COMMITTEE MEETING $ 277 $ 158 $ 172 $ 607 0% $ 65.67 TARFIRE EVENTS/STANDBY $ 1,377 $ 670 $ 2,047 1% $ 85.30 RAINING $ 2,122 $ 261 $ 1,645 $ 2,894 $ 6,922 5% $ 59.67 Total w/PA Codes No PA Code $ 36,984 $ 646 $ 30,997 $ 1,791 $ 34,349 $ 1,668 $ 2,076 $ 2,055 $ 7,718 $ 287 $ 17,198 $ 813 $ 129,322 $ 7,259 95% 5% L. Overtime S 37,630 S 32,787 36,018 4,130 8,005 S 18.011 IS 136,582 300% Highlights from chart Minimum Staffing 59,323 Fire Prevention 6,352 Fire Investigations 51980 Pub Safe Bond 5,201 Training 6,922 Chart Grand Total $136,582 Report by Jake Berry Fire 202O 1 st & Znd Ort Overtime i Hours FD 2020 Overtime (Hours) Overtime Project Name -' January - February - March - April L:j May - June - YTD Total - ACADEMY 28 7 35 AID RUN 4 4 8 AIRPAK MAINTENANCE/SCBA 6 12 10 28 CALL BACK 6 4 9 CITY MEETING 13 1 14 CONTRACTOR BILLABLE OT 28 20 36 8 16 108 DEPARTMENT MEETING 51 2 5 6 3 66 EXPLORERS 4 4 FIRE INVESTIGATION 4 16 11 9 10 9 58 FIRE PREVENTION OT 39 30 1 69 INSTRUCTOR 9 13 2 24 INSTRUCTOR -CBT 24 24 INSTRUCTOR -JATC 4 24 28 INSTRUCTOR - RESCUE 12 12 INSTRUCTOR - TRUCK ACADEMY 9 43 52 JATC 5 18 23 MINIMUM STAFFING -'A' SHIFT 150 188 168 48 553 MINIMUM STAFFING-'B'SHIFT 43 96 72 12 24 246 MINIMUM STAFFING -'C' SHIFT 67 3 24 1 1 2 96 Overtime 106 106 PHONE CALL OT 1 1 1 2 PROGRAM/EQUIPMENT SUPPORT 1 1 PUBLIC SAFETY BOND 6 31 13 1 16 9 74 PUBLIC SAFETY COMMITTEE MEETING 5 5 SHIFT EXTENSION (CALL) 6 5 2 5 1 5 4 25 SHIFT EXTENSION (REPORT) 3 2 3 1 8 SPECIAL ASSIGNMENT 2 13 15 SPECIAL COMMITTEE MEETING 4 3 3 9 STARFIRE EVENTS/STANDBY 16 8 24 TRAINING 1 35 41 30 48 116 Total Overtime (w/PA) 518 442 476 26 114 264 1,8319 Highlights from chart Minimum Staffing 895 hrs Fire Prevention 69 hrs Fire Investigations 58 hrs Pub Safe Bond 74 hrs Training 116 hrs Chart Grand Total 1,839 hrs Report by Jake Berry Fire 202O 1 st & Znd Quarter Revenues ACCT TITLE Total 6 Months FIRE INSPECTIONS - FMO $ 44,213 FIRE PROTECT/EMERG COST RECOVERY $ 13,295 FIRE PROTECTION SERVICES $ 31165 FIRE REINSPECTION FEE $ 300 KING COUNTY FIRE TRAINING $ 405 OTHER NON -BUS LIC/PERMITS-TECH FEE FIRE $ 31864 FALSE ALARMS- FMO $ 11150 $ 66,392 �: Report by Jake Berry w Goals For The Year (provisos) 1. 2019 Annual report - RCW 35A.92.030 - Completed 2. Quarterly reports —1st and 2nd completed 3. Mid -year report — This report completes this line 4. Third -party consultant budget and management practices - RFP in process 5. Additional revenues — False Alarm Billing, Ambulance Contract, Fire Marshall Office updated fees 6. To remain within the 2020 adopted budget- On target City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Tukwila City Council FROM: Allan Ekberg, Mayor, David Cline, City Administrator and Jay C. Wittwer, Fire Chief BY: Jay C. Wittwer, Fire Chief CC: Laurel Humphries, Council Analyst DATE: 05/20/2020 SUBJECT: Fire Department 151 Quarter Budget Report CURRENT STATUS The Fire Department has made changes to expenditures for the 2020 budget year. The Fire Department has met the total adopted budget for Jan 1 to March 31, reflected at 25% and now through April 2020, it is on target at 33% of budget. Overtime use is tracking ($77,802) under projected budget as of April 30, 2020. The Fire Department is projected to be at or below budget when the final April 2020 budget report is provided by the Finance Department. BACKGROUND The Fire Department Administrative Team has committed to remain within the adopted budget for 2020 In the past ten years the Fire Department has required a budget amendment that increases that adopted budget each year. There have been reasons for these increases, however most years have been centered on Salaries/Benefits and Overtime. DISCUSSION 1 st Quarter Financial Update through April 2020 As the attached report shows, the Fire Department is projected to be within the Adopted 2020 Budget if current expenditure patterns continue. From January to April 2020, the Fire Department had spent approximately 33% of its allocated budget. This has been accomplished through a collaborative process of the full Fire Department Administrative Team as described below and in coordination with support from other departments, specifically the Finance Department and our shared Public Safety Analyst. Overtime Usage A key change in the Fire Department was the reduction in overtime usage from January to March 2020 as compared to 2019. As the charts show below, the Fire Department had already instituted changes to its overtime usage in 2020, which caused significant savings. Due to the impacts of COVID-19 and the "Stay Home, Stay Healthy" order, there was an expectation of reduced revenues as well as reduced calls for service. The first phase of citywide operational reductions included a directive of no overtime without prior authorization of the Mayor. For the Fire Department, this meant not using overtime when there is an unscheduled leave and to staff an aid car at Fire Station 52 rather than an engine. This change has resulted in additional savings. It should be noted that if staffing falls below 12, then overtime is incurred to maintain minimum staffing of 12. Page 1 of 4 145 Throughout 2019, the average overtime usage per month was $59,629. On average, of this $59,629 monthly overtime cost, $36,342 was for minimum staffing. In 2020, the average monthly overtime usage in Jan -March had decreased to $32,053, of which $16,636 was for minimum staffing. In April 2020, the actual overtime usage declined to $4,098, with minimum staffing making up only $417 of the total month's overtime costs. Fire Department Overtime (Salaries Only) YTD as of December 31, 2019 Details Division # Division January February March April May June July August September October November December YTD TOTAL 200 Suppression 36,377 55,006 47,764 66,909 40,308 52,923 51,977 31,774 39,200 43,423 16,943 17,503 500,107 300 Prevention & Investigation 13,506 11,180 16,937 11,648 12,202 12,329 10,882 17,668 15,729 14,155 8,265 9,475 153,973 410 Training 3,764 2,624 3,846 2,895 1,902 2,624 3,581 3,957 323 4,569 - 1,122 31,206 600 Emergency Management 2,118 6,913 1,190 - - 7,737 2,751 - - 4,965 - 4,592 30,266 Total 55,764 75,724 69,737 81,452 54,411 75,612 69,191 53,399 55,251 67,112 25,207 32,692 715,552 The Fire Department has worked diligently in 2020 to stay within the Council's adopted budget. After 4 months in 2020, the Fire Department has only used 19% of its allocated budget for overtime. If this rate is sustained, overtime usage for 2020 will be on budget. Fire Department Overtime Year -to -Date as of April 30, 2020 Remaining Allocated Dlvklon* DMdon January February March April YTDTOTAL Annual Budget %Spent Budget Budget Variance 200 Suppression 26,531 20,565 23,779 1,187 72,062 440,822 16.3% 368,760 146,941 (74,879f 300 Prevention & Investigation 5,985 5,931 4,626 857 17,399 65,143 26.7% 47,744 21,714 (4,31$ 410 Training 1,607 890 2,537 2,055 7,089 18,813 37.7% 11,724 6,271 818 600 Emergency Management 303 - 3.407 - 3.710 9.406 39.4% 5,696 3.135 574 The Fire Department has adopted the following additional administrative and training changes to better manage within the 2020 Council Adopted Budget: Educating the Command Staff and all Officers: The Fire Department Administrative Staff has traditionally managed the budget for the Fire Department. Efforts have been made to include the Command Staff every month to discuss, educate and empower the Battalion Chiefs to manage budgets. Shift Budgets: in December of 2019 schedules were developed and shared with each of the shift Battalion Chiefs. Each shift is expected to remain within the budget set for 2020. The Battalion Chiefs are to review budgets with the captains and all crews. On January 10, 2020 an all officers meeting was held to educate the officers on the budget and to provide clear expectations concerning accountability of the budget. The Mayor and City Administrator attended this meeting. A video was recorded and shared with all Fire Department personnel shortly after the meeting. Fire Prevention: is expected to remain within the budget set for 2020. Efforts have been made in the past year to bring efficiencies within that office and to address services that have not met the needs of the community. Vacant positions: Two support staff positions have not been filled, one in each of the following divisions: Emergency Management and Fire Prevention. These two positions became vacant during Page 2 of 4 146 2019. The savings from these un-filled positions are cost saving measures, however service levels have been affected within the Emergency Management Division and Fire Prevention Division. Consulting Services: Habile Consulting and Prothman Company are two consulting services brought into this process. Habile Consulting was the vendor selected to meet one of the provisos of the City Council. Prothman provided a fire service professional (former Fire Chief Marcus Kragness) to review and advise the Fire Chief regarding best practices within the fire service. Former Fire Chief Marcus Kragness did review and provide advice to the Fire Department Management Team. He spent twelve weeks with the department that included attending Command Staff meetings, an all Officers meeting, met face to face with most of the response crews, the Fire Marshal's office and reviewed department documents. Mr Kragness also provided a detailed assessment of Fire Station 52 response area including all other fire response units that responded into that area. He also made recommendations that will be incorporated into the Department's Strategic Plan. Habile Consulting has withdrawn from the process and will not provide a report as is mentioned in the attached Fire Department Proviso Response memo. Trainina exaenditures: Boat Program Training: For the past ten years the Fire Department has provided training to a select group of boat operators within the department. Most of this training was done on duty with no overtime costs incurred however, there has been a small amount of overtime from time to time during the past ten years. For the budget year 2020 no boat training will be conducted, and no associated overtime costs will be incurred. As committed to earlier, the overall Boat Program funding policies will be brought to a future Council Committee later this year for review. Rescue Team Training: All rescue type overtime incurred training has been suspended. There is rescue training that is provided through the training consortium. This training is conducted to on duty personnel only and no overtime is incurred. In the past up to $50,000.00 has been spent on rescue team training, and most of this was off duty overtime expenditures. The goal is to have zero dollars spent on rescue training during 2020. The Zone 3 Operations Committee has developed a plan to have all Truck/Ladder Companies respond to assist with Rescue type calls when additional assistance is required. L354 has started to prepare to fill this role in the future. This effort will ensure that our rescue capabilities will meet the demand within our community and for the region. Mandatory Training: All mandatory training is being identified and cataloged. This includes the following: WAC 296-305, JATC, Blue -card, Peer Support, vehicle operators and health/safety. These types of training are required either by National, State or Local Standards. Much of this training is conducted on duty, however there are cases where overtime costs are needed to provide this training. All other training has been suspended as noted above. Staffing Software tracking: The Fire Department has placed a new staffing management software program into service during 2019. Starting January 1, 2020 all regular and overtime entries are coded in a manner that provides the ability to track all staffing costs in detail. FINANCIAL IMPACT With these changes to the Fire Department budget tracking and adjustment efforts, the overall goal is to better track costs and to bring the ending fund balance for the Fire Department 2020 budget within the adopted budget as approved by the City Council. If a budget amendment is requested before the end of this year, these tracking efforts will bring clarity to the City Council concerning the status of service levels and the Fire Department Budget. Page 3 of 4 Ir MIA RECOMMENDATION This is for discussion only and submitted in response to the 2019 Budget Proviso. ATTACHMENTS • December 2019 Overtime report • April 2020 Overtime report • May 6, 2020 Memo on Proviso Response presented to Community Services & Safety Committee Page 4 of 4 Um 17 16 15 14 December 2019 Active Firefighters by D. 000 ONE 0 NONE MEN MMEME MEN MEMEE ,ONE ONE 000 ONE 0 NONE MEN MMEME MEN MEME ONE 000 ONE 0 NONE MEN MMEME MEN MEMEE NONE 0 ME MEMO NEESE M MEN ME MEN MEN ME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . O Fire Department Overtime (Salaries Only) As of December 31, 2019 1-Min Staffing 37,055 22,229 44,298 53,206 31,457 45,713 56,785 34,606 37,511 45,136 10,993 17,124 436,114 2-Training 5,115 4,074 6,505 10,854 13,413 9,289 1,170 3,360 4,296 9,275 2,091 789 70,232 3.0.Other 1,235 33,984 4,931 6,374 847 11,251 3,042 953 337 812 176 2,995 66,938 3.2-Equip Test/Maint 1,418 1,021 2,058 1,569 490 1,787 - 1,838 730 2,051 126 482 13,570 3.3-Meetings 1,701 3,820 246 990 634 425 317 563 - 422 1,051 1,327 11,497 4-Prevention 4,117 4,984 2,913 3,924 3,379 2,312 6,004 4,088 6,489 5,469 5,059 5,930 54,668 5-Emergency Response 249 - - 405 1,397 716 - 62 1,191 187 2,504 167 6,879 6-Billable 4,873 5,612 8,786 4,130 2,794 4,118 1,874 7,928 4,698 3,759 3,206 3,877 55,655 Total 55,764 75,724 69,737 81,452 54,411 75,612 69,191 53,399 55,251 67,112 25,207 32,692 715,552 Details Division # Division January February March April May June July August September October November December YTD TOTAL 200 Suppression 36,377 55,006 47,764 66,909 40,308 52,923 51,977 31,774 39,200 43,423 16,943 17,503 500,107 1-Min Staffing 27,653 22,229 39,061 50,946 25,034 33,218 48,930 26,451 33,615 36,324 10,993 12,533 366,985 2-Training 4,426 3,127 2,230 8,284 11,785 9,203 1,170 1,907 3,327 3,626 2,091 - 51,176 3.0-Other 670 25,111 1,502 4,445 561 6,635 1,560 953 337 812 176 2,995 45,759 3.2-Equip Test/Maint 1,418 1,021 2,058 1,569 490 1,787 - 1,838 730 2,051 126 482 13,570 3.3-Meetings 1,110 2,637 246 646 634 425 317 563 - 422 1,051 1,327 9,379 4-Prevention - - 34 282 212 - - - - - - - 527 5-Emergency Response 249 - - 405 1,397 716 62 1,191 187 2,504 167 6,879 6-Billable 851 881 2,633 332 195 939 - - - - 5,832 300 Prevention & Investigation 13,506 11,180 16,937 11,648 12,202 12,329 10,882 17,668 15,729 14,155 8,265 9,475 153,973 1-Min Staffing 5,798 - 3,326 2,261 6,423 6,346 3,737 6,218 3,896 4,347 - - 42,352 2-Training - - 2,738 589 723 - - - 646 579 5,276 3.0-Other 565 1,960 1,923 1,762 286 1,364 910 8,771 3.3-Meetings - 170 - 344 - - - 514 4-Prevention 4,117 4,984 2,796 3,559 2,835 1,771 5,339 3,523 6,489 5,469 5,059 5,930 51,872 6-Billable 3,026 4,066 6,153 3,133 1,934 2,847 895 7,928 4,698 3,759 3,206 3,544 45,188 410 Training 3,764 2,624 3,846 2,895 1,902 2,624 3,581 3,957 323 4,569 - 1,122 31,206 1-Min Staffing 2,078 - 1,911 - - 1,579 1,938 1,938 - - - 9,444 2-Training 689 947 775 1,981 904 86 - 1,454 323 4,569 789 12,518 3.0-Other - - 1,077 166 - 86 1,329 3.3-Meetings 1,012 - - - - 1,012 4-Prevention - 83 83 332 540 665 565 - 2,269 6-Billable 997 665 - 665 665 332 978 - 332 4,635 600 Emergency Management 2,118 6,913 1,190 7,737 2,751 4,965 4,592 30,266 1-MinStafng 1,526 - - 4,571 2,180 4,465 4,592 17,334 2-Training - - 762 - - 500 - 1,262 3.0-Other - 6,913 428 3,166 571 - 11,079 3.3-Meetings 592 - - - - - 592 �otal 55,764 75,724 69,737 81,452 54,411 75,612 69,191 53,399 5 25,207 32,692 715,552 % of Total Overtime 60.9 % 9.8 % 9.4% 1.9% 1.6% 7.6% 1.0% 7.8% 100.0% Annual Budget %Spent 789,838 90.6% Annual Budget %Spent 600,646 83.3% 145,504 105.8% 30,545 102.2% 13,143 230.3% 789,838 90.6% Cr N Fire Department Overtime Detail by Division 200 Suppression As of December 31, 2019 Overtime Type OLD Project# IL ft o. January February March Ap July August September October November December YTDTOTAL 1-Min Staffing 110015 417 Fire Prevention Suppression OT - - - - 187 - - - - - - - 187 1-Min Staffing 110041 429 Shift Extension (Call) 132 108 1,944 108 127 31 - 132 49 132 129 138 3,030 1-Min Staffing 110044 435 Staffing - Minimum 27,521 22,120 37,117 50,837 24,720 33,187 48,930 26,319 33,566 36,192 10,864 12,395 363,768 Subtotal 27,653 22,229 39,061 50,946 25,034 33,218 48,930 26,451 33,615 36,324 10,993 12,533 366,985 2-Training 110011 436 Training - 2,129 334 7,755 9,374 3,316 195 498 2,797 3,626 1,594 - 31,619 2-Training 110019 421 Instructor 4,426 - 1,896 - 2,271 5,389 975 1,408 529 - 497 17,392 2-Training 110049 437 Training Suppression OT - 997 - 529 140 498 - - - - - - 2,165 Subtotal 4,426 3,127 2,230 8,284 11,785 9,203 1,170 1,907 3,327 3,626 2,091 - 51,176 3.0-Other 110001 400 Aid Run - 217 257 218 280 - 173 - - - - - 1,146 3.0-Other 110006 402 Call Back 475 - - - - - 475 3.0-Other 051 Home Budget In -House Labor - 23,400 - - - 1,661 358 - - 812 - 2,972 29,203 3.0-Other 110042 430 Shift Extension (Report) 195 - 107 263 187 200 420 43 190 - 68 23 1,696 3.0-Other 110054 427 Public Safety Bond - 1,495 1,138 3,965 93 4,774 609 910 54 - 108 - 13,146 Subtotal 670 25,111 1,502 4,445 561 6,635 1,560 953 337 812 176 2,995 45,759 3.2-Equip Test/Maint 110021 425 Program/Equipment Support 54 569 1,062 54 - - - - 87 - 126 433 2,385 3.2-Equip Test/Maint 110030 401 AirpakMaintenance/SCBA 1,364 452 996 1,515 490 1,787 - 1,838 643 2,051 - 48 11,185 Subtotal 1,418 1,021 2,058 1,569 490 1,787 - 1,838 730 2,051 126 482 13,570 3.3-Meetings 110007 410 Department Meeting 1,110 1,337 246 646 634 425 317 563 - 422 1,051 1,327 8,079 3.3-Meetings 110008 DMO-Officer Meeting - 1,300 1,300 Subtotal 1,110 2,637 246 646 634 425 317 563 - 422 1,051 1,327 9,379 4-Prevention 110053 416 Fire Prevention OT - - 34 282 212 - - - - - - - 527 Subtotal - - 34 282 212 - - - - - - - 527 5-Emergency Response 110024 412 Explorers 156 - - 125 405 716 - - - 187 - 167 1,755 5-Emergency Response 110043 428 Rescue Team Meeting/ Drill 93 - - 280 993 - - 62 1,191 - 2,504 - 5,124 Subtotal 249 - - 405 1,397 716 - 62 1,191 187 2,504 167 6,879 6-Billable 110039 434 Starfire Events/Standby 851 881 2,633 332 195 939 - - - - - - 5,832 Subtotal 851 881 2,633 332 195 939 - - - - - - 5,832 47,764 66,909 40,308 52,923" "" 300 Prevention & Investigation As of December 31, 2019 January Fe September October November December YTD TOTAL 1-Min Staffing 110015 417 Fire Prevention Suppression OT 4,303 - 1,065 2,261 6,423 2,261 1,660 2,180 - 2,180 - - 22,333 1-Min Staffing 110041 429 Shift Extension (Call) - - - - - - - 162 - - - - 162 1-Min Staffing 110044 435 Staffing - Minimum 1,495 - 2,261 - - 4,085 2,078 3,876 3,896 2,167 - - 19,857 Subtotal 5,798 3,326 2,261 6,423 6,346 3,737 6,218 3,896 4,347 42,352 2-Training 110011 436 Training - - 1,702 589 723 - - - 646 579 - - 4,240 2-Training 110019 421 Instructor 1,036 - - - - 1,036 Subtotal - - 2,738 589 723 - - - 646 579 - - 5,276 3.0-Other 051 Home Budget In -House Labor 1,923 1,668 286 1,364 910 6,152 3.0-Other 110020 MISC-Other - 801 - 801 3.0-Other 110054 427 Public Safety Bond 565 1,159 - 94 - - - 1,818 Subtotal 565 1,960 1,923 1,762 286 1,364 910 - - - - - 8,771 3.3-Meetings 110007 410 Department Meeting - 170 - 344 - - - - - - - - 514 Subtotal - 170 - 344 - - - - - - - - 514 4-Prevention 110013 414 Fire Investigation 1,021 754 596 - - 170 792 162 485 1,191 574 436 6,180 4-Prevention 110053 416 Fire Prevention OT 3,095 4,231 2,201 3,559 2,835 1,601 4,547 3,361 6,004 4,278 4,485 5,495 45,692 Subtotal 4,117 4,984 2,796 3,559 2,835 1,771 5,339 3,523 6,489 5,469 5,059 5,930 51,872 6-Billable 110014 415 Contractor Billable OT 3,026 3,215 5,472 3,133 1,934 2,847 895 7,928 4,698 3,759 3,206 3,544 43,656 6-Billable 110039 434 Starfire Events/Standby - 851 681 - - - - - - - - - 1,532 Subtotal 3,026 4,066 6,153 3,133 1,934 2,847 895 7,928 4,698 3,759 3,206 3,544 45,188 Total 1'Mr-11,180 12,202 17,668 15,729 410 Training As of December 31, 2019 bruary March April May June July August September October November December YTDT_gM 1-Min Staffing 110015 417 Fire Prevention Suppression OT 2,078 - - - - - - - - - - - 2,078 1-Min Staffing 110044 435 Staffing - Minimum - - 1,911 - - 1,579 1,938 1,938 - - - - 7,366 Subtotal 2,078 - 1,911 - - 1,579 1,938 1,938 - - - - 2-Training 110011 436 Training - 947 775 1,981 904 86 - 1,454 323 4,569 - 789 11,829 2-Training 110049 437 Training Suppression OT 689 - - - - - - - - - - - 689 Subtotal 689 947 775 1,981 904 86 - 1,454 323 4,569 - 789 12,518 051 Home Budget In -House Labor - - - - - - - - - - - 3.0-Other 110054 427 Public Safety Bond - - 1,077 166 - 86 - - - - - - 1,329 Subtotal - - 1,077 166 - 86 - - - - - - 1,329 3.3-Meetings 110007 410 Department Meeting - 1,012 - - - - - - - - - - 1,012 Subtotal - 1,012 - - - - - - - - - - 1,012 4-Prevention 110013 414 Fire Investigation - - - - 166 42 623 - - - - - 831 4-Prevention 110053 416 Fire Prevention OT - - 83 83 166 499 42 565 - - - - 1,438 Subtotal - - 83 83 332 540 665 565 - - - - 2,269 6-Billable 110014 415 Contractor Billable OT 997 665 - 665 665 332 978 - - - - 332 4,635 Subtotal 997 665 - 665 665 332 978 - - - - 332 4,635 Total 3,764 2,624 3,846 2,89 1,122 31,206 600 Emergency Management As of December 31, 2019 Project#f 1-Min Staffing 110044 2-Training 110011 3.0-Other 3.0-Other 110054 3.3-Meetings 110007 March April May June July August September October November December YTD TOTAL 435 Staffing - Minimum 1,526 - - - - 4,571 2,180 - - 4,465 - 4,592 17,334 Subtotal 1,526 - - - - 4,571 2,180 - - 4,465 - 4,592 17,334 436 Training - 762 - - 500 - 1,262 Subtotal - - 762 - - - - - - Soo - - 1,262 051 Home Budget In -House Labor 6,913 - 3,166 571 10,651 427 Public Safety Bond - - 428 - - - - - - - - - 428 Subtotal 6,913 428 3,166 571 11,079 410 Department Meeting 592 - - - - - - - - - - - 592 Subtotal 592 - 592 4,965 April 2020 Active Firefighters by D. 19 18 17 16 15 14 ■■�■■-■■■mow ■� 13 12 11 ■■■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■■■■■■■■■■■■■■■■■■■■■■■■■■■■■ ■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■ ■■■■■■ ■■■■■■■■■■■■■ ,■■■■■■■■ .............................. .............................. , Cn Cn C3� April 2020 Active Firefighters by Day Shift A 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 ,tiO ,yO ,tiO ,ti0 ,tiO ,tiO ,yO ,tiO ,tiO ,tiO ,tiO ,yO ,tiO ,ti0 ,tiO ,tiO ,yO ,yO ,tiO ,tiO ,tiO ,yO ,yO ,tiO ,tiO ,tiO ,yO ,yO ,tiO ,ti0 y\tip 'l\1� .5\�� b\,O 1\'ti 61, 1, �y\,"O 1\,`O 6\,tiO b\ b\ b\ b\ b\ b\ b\ b\ b\ b\�' b\'�' b\�' b\'1' b\�' b\�' b\'�' b\^• b\�' b\�' b\'1' b\'1' b\'l' b\'1' b\'1' b\'1' b\'1' ■ Regular Hours ■ Minimum Staffing OT April 2020 Active Firefighters by Day Shift B 17 16 15 14 13 12 11 10 0 ,tiO ,yO ,yO ,yO ,yO ,yO ,tiO ,tiO ,tiO ,tiO ,tiO ,tiO ,tiO ,tiO ,tiO ,tiO ,yO ,yO ,yO ,yO ,yO ,tiO ,tiO ,tiO ,tiO ,tiO ,tiO ,tiO ,tiO ,tiO y\�O � O b\�O y\,tiO to\,tiO ,tiO 0\,tiO al\,YO O\,LO y\,LO '1\,�O '6\,�O b\,�O y\,tiO ro\. ^\. (b\. of\. O\. y\. 'L\. 'S\. b\. y\. (o\. ^\. �\. �\. O\. \'1' ■ Regular Hours ■ Minimum Staffing OT Cn Can 00 April 2020 Active Firefighters by Day Shift C 19 18 17 16 15 14 13 12 11 10 9 8 — 7 6 5 4 3 2 1 0 ,tiO y\tip b\ ,yO ,tiO ,ti0 ,tiO ,tiO ,yO ,tiO ,tiO ,tiO ,tiO ,yO ,tiO ,ti0 ,tiO ,tiO ,yO ,yO ,tiO ,tiO ,tiO ,yO ,yO ,tiO ,tiO ,tiO ,yO ,yO ,tiO ,ti0 'l\1� .6\�� b\, c 1, 1, 1, �y\,"O 1\,`O 9\1O \I, b\ b\ b\ b\ b\ b\ b\ b\ b\�' b\'�' b\�' b\'1' b\�' b\�' b\'�' b\�' b\�' b\�' b\'1' b\'1' b\'l' b\'1' b\'1' b\'1' b\'1' b\'l' b\'1' b\'1' b\'� ■ Regular Hours ■ Minimum Staffing OT Fire Department Overtime (Salaries Only) January February March April YTD TOTAL % of Total Overtime % of Annual Budget Spent Annual Budget 1-Min Staffing Suppression - Shift A 9,953 3,053 3,411 - 16,417 16.4% Suppression - Shift B 2,245 5,821 6,256 276 14,598 14.6% Suppression - Shift C 3,722 7,565 7,884 141 19,313 19.3% Total 15,921 16,439 17,550 417 50,327 50.2% 2- Training Suppression - Shift A 885 261 - - 1,146 1.1% Suppression - Shift B 1,773 - - - 1,773 1.8% Suppression - Shift C 2,353 176 - - 2,529 2.5% Training - 890 2,537 2,055 5,482 5.5% Total 5,012 1,326 2,537 2,055 10,930 10.9% 3.0- Other Suppression - Shift A - 389 3,141 27 3,557 3.5% Suppression - Shift B 399 1,588 889 114 2,990 3.0% Suppression - Shift C - 622 1,812 61 2,495 2.5% Emergency Management - - 31407 - 3,407 3.4% Total 399 2,599 9,249 201 12,448 8.9% 3.2-Equip Test/Maint Suppression - Shift A 408 833 - - 1,242 1.2% Total 408 833 - - 1,242 1.2% 3.3-Meetings Suppression - Shift A 1,261 - 158 172 1,591 1.6% Suppression - Shift B 647 178 - 396 1,221 1.2% Suppression - Shift C 2,336 79 - - 2,416 2.4% Training 528 - - 528 0.5% Emergency Management 303 - - - 303 0.3% Total 5,075 258 158 568 6,059 6.0% 4-Prevention Prevention and Investigation 3,960 4,373 1,123 857 10,313 10.3% Total 3,960 4,373 1,123 857 10,313 10.3% 5-Emergency Response Suppression -Shift C 248 - - - 248 0.2% Total 248 - - - 248 0.2% 6-Billable Suppression - Shift B 299 - 230 - 528 0.5% Prevention and Investigation 2,024 1 1,557 3,504 - 1 7,085 7.1% Training 1,078 1 - - - 1,078 1.1% Total 3,401 1,557 3,734 - 8,692 8.7% Grand Total 34,426 27,386 34,349 4,098 100,259 100% 18.8% 534,184 C31 a7 O Fire Department Overtime Year -to -Date as of April 30, 2020 Division # 200 300 410 600 Division January February March April YTD TOTAL Suppression 26,531 20,565 23,779 1,187 72,062 Prevention & Investigation 5,985 5,931 4,626 857 17,399 Training 1,607 890 2,537 2,055 7,089 Emergency Management 303 - 3,407 - 3,710 Division Total 34,426 27,386 34,349 4,098 100,260 Fire Department Overtime Detail by Division 200 - Suppression Year -to -Date as of April 30, 2020 Overtime Type Project # Project 1-Min Staffing 429 Shift Extension (Call) 1-Min Staffing 297 Staffing - Minimum Subtotal 2-Training [268.271,421,4491 Instructor 2-Training 422 JATC Subtotal 3.0-Other 430 Shift Extension (Report) 3.0-Other 427 Public Safety Bond 3.0-Other 530 COVID-19 Subtotal 3.2-Equip Test/Maint 401 Airpak Maintenance/SCBA Subtotal 3.3-Meetings 405 City Meeting 3.3-Meetings 410 Department Meeting 3.3-Meetings 441 Special Committee Meeting Subtotal 5-Emergency Response 412 Explorers Subtotal 6-Billable 434 Starfire Events/Standby Subtotal Total January February March April YTD TOTAL 361 295 139 333 1,128 15,560 16,144 17,411 84 49,199 15,921 16,439 17,550 417 50,327 2,660 176 - - 2,836 230 - 230 5,012 436 - - 5,448 - 165 129 167 461 399 2,162 889 34 3,484 - - 4,609 - 4,609 399 2,S99 5,842 201 9,041 408 833 - - 1,242 408 833 1,242 945 79 - 3,022 178 - 396 3,596 277 - 158 172 607 4,244 258 158 568 5,228 248 - - - 248 248 - 248 299 230 528 299 - 230 - 528 26,531 20,565 23,779 1,187 72,062 Remaining Allocated Annual Budget % Spent Budget Budget Variance 440,822 16.3% 368,760 146,941 (74,879) 65,143 26.7% 47,744 21,714 (4,315) 18,813 37.7% 11,724 6,271 818 9,406 39.4% 5,696 3,135 574 534,184 18.8% 433,925 178,061 (77,802) 200 - Suppression - SHIFT A Year -to -Date as of April 30, 2020 Overtime Type January February March 1-Min Staffing 429 Shift Extension (Call) 105 - - 105 1-Min Staffing 297 Staffing - Minimum 9,849 3,053 3,411 16,312 Subtotal 9,953 3,053 3,411 16,417 2-Training 436 Training 433 261 - 694 2-Training [268.271,421,4491 Instructor 452 - 452 Subtotal 885 261 1,146 3.0-Other 400 Aid Run - 272 272 3.0-Other 430 Shift Extension (Report) 117 - 27 143 3.0-Other 530 COVID-19 - 3,141 3,141 Subtotal - 389 3,141 27 3,557 3.2-Equip Test/Maint 401 Airpak Maintenance/SCBA 408 833 - 1,242 Subtotal 408 833 1,242 3.3-Meetings 410 Department Meeting 1,261 - - - 1,261 3.3-Meetings 441 Special Committee Meeting - 158 172 330 Subtotal 1,261 - 158 172 1,591 4,536 200 - Suppression - SHIFT B Year -to -Date as of April 30, 2020 Overtime Type January February March 1-Min Staffing 429 Shift Extension (Call) - 254 - 276 530 1-Min Staffing 298 Staffing - Minimum 2,245 5,567 6,256 - 14,068 Subtotal 2,245 5,821 6,256 276 14,598 2-Training 436 Training 396 - - - 396 2-Training [268.271,421,448,4491 Instructor 1,147 1,147 2-Training 422 JATC 230 230 Subtotal 1,773 - - 1,773 3.0-Other 430 Shift Extension (Report) - 36 - 79 116 3.0-Other 427 Public Safety Bond 399 1,552 889 34 2,874 Subtotal 399 1,588 889 114 2,990 3.3-Meetings 405 City Meeting 429 - - - 429 3.3-Meetings 410 Department Meeting 217 178 396 792 Subtotal 647 178 - 396 1,221 6-Billable 434 Starfire Events/Standby 299 - 230 - 528 Subtotal 299 230 - 528 786 21,110 O� N 200 - Suppression - SHIFT C Year -to -Date as of April 30, 2020 Overtime Type January February March April YTD TOTAL 1-Min Staffing 429 Shift Extension (Call) 256 41 139 57 494 1-Min Staffing 299 Staffing - Minimum 3,466 7,524 7,744 84 18,819 Subtotal 3,722 7,565 7,884 141 19,313 2-Training 436 Training 1,293 - - - 1,293 2-Training [268.271,421,4491 Instructor 1,061 176 1,236 Subtotal 2,353 176 - 2,529 3.0-Other 400 Aid Run - - 215 215 3.0-Other 430 Shift Extension (Report) 12 129 61 203 3.0-Other 427 Public Safety Bond 610 - 610 3.0-Other 530 COVID-19 - 1,467 1,467 Subtotal - 622 1,812 61 2,495 3.3-Meetings 405 City Meeting 515 79 - 595 3.3-Meetings 441 Special Committee Meeting 277 - 277 3.3-Meetings 410 Department Meeting 1,544 1,544 Subtotal 2,336 79 2,416 5-Emergency Response 412 Explorers 248 248 Subtotal 248 - 248 Total 696 203 27,000 Fire Department Overtime Detail by Division 300 -Prevention & Investigation Year -to -Date as of April 30, 2020 Project 4-Prevention 414 Fire Investigation 4-Prevention 416 Fire Prevention OT 6-Billable 6-Billable 410 -Training Year -to -Date as of April 30, 2020 2-Training 2-Training 3.3-Meetings 6-Billable 415 Contractor Billable OT 434 Starfire Events/Standby Project 266 Training 421 Instructor 410 Department Meeting 434 Starfire Events/Standby January February 352 1,629 3,608 2,744 Subtotal 3,960 4,373 2,024 1,557 Subtotal 2,024 1,557 Total 5,984 5,931 January February - 890 Subtotal - 890 528 - Subtotal 528 - 1,078 - Subtotal 1,078 - Total 1,607 890 March April YTD TOTAL 1,123 857 3,960 - - 6,352 1,123 857 10,313 3,063 - 6,645 440 - 440 3,504 - 7,085 4,626 857 17,398 March April YTD TOTAL 2,537 2,055 4,592 - - 890 2,537 2,055 5,482 - - 528 - - 528 - - 1,078 - - 1,078 2,537 2,055 7,089 600- Emergency Management Year -to -Date as of April 30, 2020 3.0-Other 530 3.3-Meetings 410 Project January February March April YTD TOTAL COVID-19 - - 3,407 - 3,407 Subtotal - - 3,407 - 3,407 Department Meeting 303 - - - 303 Subtotal 303 - - - 303 Total 303 - 3,407 ,710 TO: Community Services and Safety Committee FROM: Vicky Carlsen, Finance Director Jay Wittwer, Fire Chief David Cline, City Administrator CC: Mayor Ekberg DATE: May 6, 2020 SUBJECT: Update on 2020 Fire Department Budget Proviso ISSUE Update City Council on status of the 2020 Budget Proviso for the Fire Department that was included in the 2019-2020 mid -biennium budget amendment as well as an update on the Habile Consulting contract, the company that was hired in response to Budget Proviso 1 d of the Tukwila City Council regarding the general fund appropriation to the Fire Department DISCUSSION In 2019, the Finance Committee, as well as the full Council, spent several months reviewing a number of operational aspects of the Fire Department. The review was conducted because the fire department has exceeded their authorized budget every year for the last several years. One of the outcomes of the review was to authorize a budget amendment for 2019 to true up overtime costs, fund recruits in the academy, and provide resources for leave balance payouts incurred when firefighters retired. The City Council approved the budget amendment but included a Budget Proviso which listed conditions to be met in 2020. The Proviso is attached to this memo. Status Update on Proviso Conditions Condition 1 a requires the "Fire Chief to deliver a 2019 annual report to the City Council by the end of the first quarter." While delayed due to the city's COVID-19 response, the e report was transmitted to the City Council on April 27, 2020 and will be presented to the Community Services & Safety Committee on May 11, 2020. The second condition (1 b) requires the "Fire Chief to deliver quarterly reports to the City Council discussing new revenue implementation and budget status updates." Through the end of March, the Fire Department is meeting budget, with 25% of budget spend. A summary report is attached to this memo and a full 1st quarter report will be presented to the Finance Committee in May. 165 INFORMATIONAL MEMO Page 2 The third condition (1 c) requires "the Mayor and/or City Administrator to deliver a mid- year report to the City Council regarding budget status to date and projection for year end." This report is planned to be delivered in July or August after the 2nd Quarter closes. The fourth condition (1d) states, "The City will hire a third -party consultant to review the Fire Department budgetary and management practices." In response to Item 1d, the City contracted with Habile Consulting to perform the review. The contract was signed on December 23, 2019. Habile Consulting began work by interviewing Councilmembers and various City staff. Interviews were completed in mid - January. A meeting was scheduled for March 11, 2020, when the City expected to receive an update on the progress of the review. However, the meeting was canceled by the contractor and the City was notified that, due to a serious medical issue with a family member, the meeting would need to be rescheduled. Since that date, the City has had no response from the consultant even though multiple attempts to contact the consultant have been made. Attempts included emails as well as phone calls. At this time, the City has not paid Habile Consulting. Options moving forward include the following: 1. Hire another consultant to perform the independent study as required by the Budget Proviso. 2. Defer this item until the next biennium. 3. Other options Council may wish to consider. The fifth condition (1e) requires the Fire Department to "implement revenue sources and operational efficiencies while considering cost savings wherever appropriate." The following chart shows revenue collected through the end of the March for Fire related activities. Of note, is that False Alarm charges are being charged, the monthly Ambulance Service fees are being received, and the department has collected funds from Haz Mat Response Recovery (accidents). GENERAL Fire Tech Fee EMS Participation Grant Haz Mat Response Recovery Emergency Services (EMS Levy) Fire Inspections Planning Review Fees - FMO False Alarm Charges Ambulance Services Totals JAN FEB MAR YTD TOTAL 698 $ 802 $ 773 $ 2,273 - - 1,260 1,260 4,485 3,064 2,800 10,349 2,000 2,000 2,000 6,000 15,595 7,207 7,095 29,897 14,747 12,780 12,157 39,684 400 150 200 750 2,000 2,000 2,000 6,000 $ 39,925 $ 28,002 $ 28,284 $ 96,212 In addition, the Fire Department has continually looked at operational savings throughout its department and has implemented these where possible. 566 INFORMATIONAL MEMO Page 3 RECOMMENDATION Staff is seeking direction on the preferred option to meet the Proviso condition of Item 1d regarding hiring a third -party consultant to review the Fire Department budgetary and management practices. ATTACHMENTS Attachment 1: Budget Proviso of the Tukwila City Council 2019 — 2020 Mid -Biennium Budget Amendment Attachment 2: Fire Department Budget to Actual Report as of March 31, 2020 167 INFORMATIONAL MEMO Page 4 Attachment 1 Budget Proviso of the Tukwila City Council 2019-2020 Mid -Biennium Budget Amendment The following is hereby declared to be the legislative intent of the City Council regarding the General Fund appropriation to the Fire Department: 1. The City Council approves the $522,900 amendment to the Fire Department's 2019 budget with the expectation that the following conditions be met in 2020: a. The Fire Chief will deliver a 2019 Annual Report, per RCW 35A.92.030, to the City Council by the end of the 1 st Quarter. b. The Fire Chief will deliver quarterly reports to the City Council discussing new revenue implementation and budget status updates including overtime and training. c. The Mayor and/or City Administrator will deliver a mid -year report to the City Council regarding budget status to date and projection for year-end. d. The City will hire a third -party consultant to review the Fire Department budgetary and management practices. e. The Fire Department will implement additional revenue sources and operational efficiencies while considering cost savings wherever appropriate. 2. It is expected that the Fire Department will operate within the adopted budget for 2020. If the above proviso conditions are met, the City Councii may reconsider a budget amendment following the mid -year report. RM INFORMATIONAL MEMO Page 5 Attachment 2 FIRE CITY OF TUKW I LA GENERAL FUND EXPENDITURES YTD AS OF MARCH 31, 2020 BUDGET ACTUAL VARIANCES ACTUAL EXPENDITURE TYPE OVER/(UNDER) % CHANGE 2020 ALLOCATED % 2020 ANNUAL ALLOCATED 2018 2019 2020 BDGT B(PBNDED 2018/2019 2019/2020 11 Salaries 7,666,823 1,916,706 1,814,823 1,910,209 2,002,445 85,740 26% 5% 5% 12 Extra Labor - - 825 - - - - - - 13 Overtime 534,648 170 822 121,036 207,665 106,435 (64,387) 20 % 72 % (49) % 15 Holiday Pay 295,454 - 2,443 - - - - - - 21 FICA 208,956 52,239 33,511 38,196 35,719 (16,520) 17% 14% (6)% 22 Pension-LEOFF2 446,274 111,569 96,434 106,396 105,306 (6,262) 24% 10% (1)% 23 Pens ion-PER SIPSERS 51,129 12,782 12,517 13,551 8,650 (4,132) 17% 8% (36)% 24 Industrial Insurance 422,619 105,655 66,953 102,081 96,946 (8,709) 23 % 52 % (5)% 25 Medical & Dental 1,548,497 387,124 364,164 376,823 420,224 33,100 27 % 3 % 12 % Total Salaries & Benefits 11,174,400 2,756,897 2,512,706 2,764,921 2,776,726 18,830 25% 10% 1 % 31 Supplies 206,877 84,753 38,063 56,102 29,641 (55,112) 14 % 47 % (47) % 35 Small Tools 87,268 2,132 3,307 276 26,898 24,766 31 % (92) % 9643 % 41 Professional Services 302,945 18,442 74,446 54,160 70,932 52,490 23 % (27) % 31 % 42 Communication 32,170 6,321 8,318 7,169 8,620 2,298 27% (14)% 20% 43 Trawl 7,000 757 1,788 2,355 468 (290) 7 % 32 % (80) % 45 Rentals and Leases 654,151 162,974 151,209 168,731 164,060 1,086 25 % 12 % (3) % 46 Insurance 199,922 172,182 191,453 164,888 173,213 1,031 87% (14)% 5% 47 Public Utilities 73,360 15,575 23,270 23,846 35,354 19,780 48 % 2 % 48 % 48 Repairs and Maintenance 36,921 8,218 11,418 11,876 16,121 7,903 44% 4% 36% 49 Miscellaneous 143,874 18,750 82,056 22,512 22,517 3,767 16 % (73) % 0 % 64 Machinery & Equipment 200.000 - - - - - - - - Total Operating Expenses 1 1,944,488 490,1041 585,328 511,914 547,824 1 57,720 28% (13)% 7% Total Expense, 1 13,118,888 3,247,001 1 3,098,033 3,266,836 3,323,550 1 76,549 25% 5% 2 % Percent of year completed 25 % 169 170 City of Tu kwi City Council Finance Committee Meeting Minutes July27, 2020 - 5:30 p.m. - Electronic Meeting due to COVID-19 Emergency Councilmembers Present: Verna Seal, Chair; Kathy Hougardy, Kate Kruller Staff Present: Allan Ekberg, David Cline, Jay Wittwer, Sherry Wright, Vicky Carlsen, Laurel Humphrey Chair Seal called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA A. Financial Policies Update Staff updated the committee on a project to update and reorganize some of the City's financial policies. Staff will return with associated legislation for committee consideration. Committee Recommendation Discussion only. B. Fire Department 6 Month Financial Report Staff provided the Committee a midyear update on the Fire Department's budget as required by the proviso adopted in 2019. Item(s) requiring follow-up Clarify that the $8,015 in March overtime expenditures was related to the EOC operation. Committee Recommendation Discussion only. C. Budget Process & Calendar Staff updated the Committee on the budget process and calendar for the remainder of the year. Committee Recommendation Discussion only. II. MISCELLANEOUS The meeting adjourned at 6:17 p.m. Committee Chair Approval Minutes by LH 171 172 UPCOMING MEETINGS AND EVENTS AUGUST 2020 Due to COVID-19, meetings will be held electronically, with telephone access available (see agenda page). AUG 10 MONDAY AUG 11 TUESDAY AUG 12 WEDNESDAY AUG 13 THURSDAY AUG 14 FRIDAY AUG 15 SATURDAY ➢ Community Services & ➢ Park Commission and ➢ Community Safety Committee Art Commission Joint Oriented Policing 5:30 PM Meeting Citizens Advisory Due to staff furloughs Electronic meeting 6:00 PM Board resulting from the Electronic meeting 6:30 PM financial impacts of Electronic meeting the coronavirus ➢ Finance pandemic, the City Committee Hall campus will be closed to the public on l Electronic Electroro nic meeting Fridays through the end of 2020. Staff will work remotely on ➢ City Council Hosted by Food Innovation Friday mornings and Committee of the Network will be furloughed Whole Meeting Friday afternoons. 7:00 PM Wednesdays Electronic meeting (Jun 24 - Oct 14) 4:00 PM - 7:00 PM 3:00 PM - 4:00 PM (Special hour reserved for 60+ and others most vulnerable to COVID-19) Tukwila Village Plaza 14350 Tukwila Intl Blvd For more information, visit foodinnovationnetwork.org/ markets AUG 17 MONDAY AUG 18 TUESDAY AUG 19 WEDNESDAY AUG 20 THURSDAY AUG 21 FRIDAY AUG 22 SATURDAY ➢ Transportation & Infrastructure Due to staff furloughs Committee resulting from the 5:30 PM financial impacts of Electronic meeting the coronavirus Hosted by Food Innovation pandemic, the City Recycling Collection Event Network Hall campus will be No vehicles may enter after ➢ Planning & Economic closed to the public on 3:00 PM. Household goads, Development Wednesdays Fridays through the clothing and styrofoam will not Committee (Jun 24-Oct 14) end of 2020. Staff will be accepted. 5:30 PM 4:00 PM - 7:00 PM work remotely on Electronic meeting 3:00 PM — 4:00 PM Friday mornings and 9:00 AM - 3:00 PM (Special hour reserved for 60+ will be furloughed Community Center ➢ City Council and others most vulnerable Friday afternoons. 12424 42"d Ave S Regular Meeting to COVID-19 ) For more information, call 7:00 PM Tukwila Village Plaza 206-938-8262 or visit Electronic meeting 14350 Tukwila Intl Blvd records.tukwilawa.gov/ WebLink/1 /edoc/331128/ For more information, visit pagel.aspx. foodi n novati on network.org/ markets COVID-19 FINANCIAL RESOURCES FOR WORKERS AND BUSINESSES The City of Tukwila has compiled a range of information being developed by various agencies and governments that may be helpful to community members on the City website. Check back on this resource page frequently for updates as new information becomes available. For more information, visit tukwilawa.gov/departments/administrative-services/covid-19-financial-resources-for-workers-and-businesses. TEMPORARY TRAIL CLOSURE AND DETOUR ROUTE The Green River Trail is closed between Tukwila International Boulevard and East Marginal Way. Closure is anticipated through November 301h. For a map of the detour route, visit records.tukwilawa.gov/WebLinkll/edoc/331053.pagel.aspx. FREE SUM M ER.1 TU KW I LA TUKWILA PARKS AND RECREATION'S PARK N' PLAY mobile recreation and summer FAa. PacpaAxioi4 meals (youth ages 18 and under). Schedule shown below. For more information, visit 'a- PARK N' PLAY tukwilawa.gov/departments/parks-and-recreation/summer-2020/. MEALS 1 AVAILABLE HERB Jul io-Aug 27 11:00AM-11:50AM 12:10PM-1:00PM FOR CHILDREN AND TEENS Monday-Thuwday Community Center Crestview Park Cascade View Community Park Foster Park or SNACKPACK MOBILE serves Jun 22 -Aug 28 Monday -Friday Aug 3 -Aug 28 Monday -Friday hot lunches to children from pre- 12:00 PM -1:00 PM 12:30 PM -1:00 PM K-12. To volunteer and help serve Hampton Heights Apartments Parking Lot Southgate Mobile Home Park lunches, call 206-717-4709 or 5711 S 1521d St 14005 42"d Ave S email at TukSnackPack@gmall.com. 41111. Aug 3 - Aug 31 Cascade View Elementary - 1360132^d Ave S Tukwila Monday - Friday Thorndyke Elementary - 4415 S 15041 St A sonaar of 1-T 10:00 AM -12:00 PM Tukwila Elementary - 5939 S 149d' St Q IMPACT PUBLIC SCHOOLS offer Jul 13 - Aug 17 Monday - Friday IMPACT breakfast and lunch meals to any child from 8:00 AM -10:00 AM Pu B:'C SCHOOLS 1-18 years old. 3438 S 148th Street / FREE COVID TESTING No insurance necessary. If you have insurance, then the medical team can bill your insurance with no co -pay fee. FREE FOOD DELIVERY TO HOUSEHOLDS AT HIGH -RISK FOR D-19 Tukwila Pantry is partnering with a food delivery service to deliver food to households through the end of June. This delivery comes at no cost to you. If you live in Tukwila, Burien, SeaTac or Boulevard Park, and are at high -risk for COVID-19, a senior or have no ability to make it to the Pantry for distribution. To sign up, visit tukwilapantry.org/delivery. DRIVE THRU PICK-UP - 3118 S 140TH ST Regular pantry hours are 10:00 AM- 2:30 PM (Tue, Thu and Sat). Tukwila Pantry is in need of shopping bags. VOLUNTEERS - In need of volunteers Wednesday, Friday and Saturday mornings at 9 AM to prepare 500+ bags of food and clean up. DONORS - Please donate at TukwilaPantry.org. 173 Tentative Agenda Schedule MONTH I MEETING MEETING MEETING MEETING REGU AR C.O C.O.W. REGU AR C.O W.4 Aug 3 10 17 24 See this week's agenda Consent Agenda Special Presentation packet cover sheet for the An ordinance amending Washington Cities Insurance agenda: Ordinance #2445, the Authority Overview and City Astound Broadband LLC Council Dos and Don't's. August 10, 2020 Franchise Agreement, to Committee of the Whole amend the franchise term Public Hearing Meeting language and provide for a Interim Flood Plain one-year extension of the Management Ordinance. franchise team. Authorize the Mayor to Special Issues sign Amendment #7 to Interim Flood Plain Contract #17-167 with Management Ordinance. SoundEarth Strategies Inc _ COVID-19 weekly report. for the Public Safety Plan COVID-19 Financial — Justice Center in the Impact Report. amount of $60,105.00. An ordinance and Resolution on Transportation Unfinished Business Concurrency. COVID-19 weekly report. An ordinance repealing Ordinance #2038, as codified as Chapter 16.52, "Flood Plain Special Meeting to follow the Management;" reenacting Committee of the Whole TMC Chapter 16.52 to Meeting. provide for Interim Flood Plain Management regulations and policies as required ofjurisdictions participating in the National Flood Insurance program; establishing six months as the effective period for the interim ordinance; adopting findings; providing for severability; declaring an emergency and establishing an effective date. Authorize the Mayor to sign a contract with NovaGlobal Inc for school speed zone automated safety cameras in the amount of $96,000 - $137,000 annually, depending on volume, with no upfront costs to the City (the program is self-sustaining). I MONTH MEETING 1 — MEETING 2 — MEETING 3 — MEETING 4 — REGULAR C.O.W. REGULAR C.O.W. Sep 7 14 21 28 * t Special Presentation Unfinished Business Special Issues H PPY An update on South COVID-19 weekly report. COVID-19 weekly report. Correctional Entity (SCORE). COVID-19 Financial L B Impact Report. & Special Issues An update on the City's iA00 COVID-19 weekly report. Permit Process. No Council or Council COVID-19 Financial Impact Committee Meetings Report. Special Meeting to follow the Committee of the Whole Meeting. Consent Agenda A resolution for the RCO grant. Unfinished Business An ordinance and resolution on Transportation Concurrency. IL7