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HomeMy WebLinkAboutFIN 2025-04-28 COMPLETE AGENDA PACKETCity of Tukwila Finance and Governance Committee O Armen Papyan, Chair o Dennis Martinez O Verna Seal AGENDA MONDAY, APRIL 28, 2025 — 5:30 PM Distribution: A. Papyan D. Martinez V. Seal T. Sharp J. McConnell Mayor McLeod M. Wine A. Youn L. Humphrey • N-SITE PRESENCE: TUKWILA CITY HALL HAZELNUT CONFERENCE Room 6200 SOUTHCENTER BOULEVARD EMOTE PARTICIPATION FOR THE PUBLIC: 1-253-292-9750, ACCESS CODE: 441656166# Click here to: Join Microsoft Teams Meetin For Technical Support: 1-206-433-7155 Item Recommended Action Page 1. BUSINESS AGENDA a. Contract for insurance archaeology, forensic accounting, and claims management with Restorical a. Forward to 5/5 Regular Meeting Consent Agenda Pg.1 Research. Brandon Miles, Director of Strategic Initiatives & Government Relations b. Permitting, Tax, Budget, & Transparency Technology b. Forward to 5/5 Regular Pg.9 Solutions: Meeting Consent Agenda (1) Contract with SmartGov for a permitting system. (2) Contract with OpenGov for Enterprise Resource Planning (ERP) software. Aaron BeMiller, Finance Director c. 2025 Q1 General Fund Report. c. Discussion Only Pg.79 Aaron BeMiller, Finance Director d. Overview of Budget Sustainability Project. d. Discussion Only Pg.99 Marty Wine, City Administrator 2. MISCELLANEOUS Next Scheduled Meeting: June 23, 2025 15. The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206-433-1800(TukwilaCityClerk@TukwilaWA.gov) for assistance. City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Governance Committee FROM: Brandon J. Miles, Strategic Initiatives Director CC: Thomas McLeod DATE: April 18, 2025 SUBJECT: Restorical Research, LLC Contract ISSUE Authorize the Mayor to execute a professional services agreement in an amount not to exceed $300,000 for insurance archaeology, forensic accounting, and claims management with Restorical Research, LLC. BACKGROUND Prior to the late 1980s/early 1990s, commercial general liability insurance policies covered environmental cleanup for insured properties and parties. Once the cost of these clean ups became known, insurance companies limited their coverage to exclude environmental cleanup costs. However, if environmental contamination occurred while the property was covered by the insurance policy, a claimant, such as new property owner, could pursue reimbursement against the past insurance policy. These policies can be old and with mergers between insurance companies, it can be difficult to determine which company still holds the policy. Restorical Research provides insurance investigation, forensic accounting, and claims management services to investigate old insurance policies. Restorical receives a small amount of compensation for expenses and receives a ten percent contingency in the event the City can collect against an old policy. DISCUSSION The City has incurred cleanup costs associated with the construction of the Justice Center. The City would like to have Restorical research past insurance policies to determine if the City might be able to pursue a claim against an old insurance policy. Additionally, the City would like to have the consultant under contract in the event similar work needs to be done on other city owned property or rights of way. FINANCIAL IMPACT The City will provide up to $600 per site/project to cover the consultant's costs. Additionally, the consultant will also receive a ten percent contingency fee in the event the City is able to successfully receive funds from a claim. For example, if the City were to receive an insurance settlement of $500,000, the consultant would get $50,000. RECOMMENDATION Forward to the May 5, 2025 consent agenda. ATTACHMENTS • Draft Agreement. 1 ��� x ��� � ��x�� xuonxwxxpn Contract Number: PROFESSIONAL SERVICES AGREEMENT 0nok/doo consultants, architects, engineers, accountants, andobhorpnofesoi/no/ THIS AGREEMENT is entered into between the City of Tukvv|a. VVuahingLun, hereinafter referred k)oo "the City", and RewstoricmU Research, LLC' hereinafter referred toos"the Consultant", in consideration of the mutual benefits, terms, and conditions hereinafter specified. 1. Project Demi0matiom. The Consultant is retained by the City to perform Insurance archaeology, forensic accounting and Claims management services inconnection with projects involving contamination, environmental investigation andmmmnediatiom. 2. Scope of Services. The Consultant agrees Loperform the services, identified unExhibit ^A^ attached hereto, including the provision of all labor, materials, equipment and supplies. 3. Duration ofAqm*emmemt;Time for Performance. This Agreement shall beinfull force and effect for a period oornnnenoinA upon execution and ending October 1, 2027, unless sooner terminated under the provisions hereinafter specified. Work under this /\onaennunt shall commence upon written notice bythe City iOthe Consultant tOproceed. The Consultant shall perform all services and provide all work product required pursuant to this Agreement no later than October 1, 2027 unless an extension of such time is granted in writing by the City. The parties may extend the duration of this /\on*ennent consistent with the turrna of Section 18 below. 4. PaVnmemt. The Consultant shall be paid by the City for completed work and for services rendered under this Agreement oefollows: A. Payment for the work provided bvthe Consultant shall bepaid 0n8contingency fee basis, as detailed on Exhibit ''B" attached h8r8t0, provided that the total amount Ofpayment tO the Consultant shall not exceed $300'080-00 per project without express written modification of the Agreement SiQD9d by the City. In addition, City 8gF88S to pay for all 9xp8nS9S related to title document production not to exceed $OOO per site and $10f0r every preliminary investigation and determination if 8 viable insurance policy and/or coverage exists. B. The Consultant shall submit monthly invoices tOthe City after such services have been performed and @"A|8COV8ry"(as defined iOExhibit B\has been received bythe City, and 8final bill upon completion Ofall the services described inthis Agreement. Such invoices will be checked bythe City and, UpOD Gpp[OV8| thereof, payment shall be made tOthe Consultant iOthe amount approved, within 30days. C. D. Payment as provided in this section Sh8U be full COnlpeOS81OO for vvOMk perfOrDOd, services rendered, and for all materials, supplies, equipment and incidentals necessary to complete the work. E. The Consultant's records and accounts pertaining to this Agreement are to be kept available for inspection by representatives of the Qb/ and the state of Washington for a period of three (3) years after final payments. Copies aho|| be made available upon request. 5. Ownership and Use of Documents. All documents, drawings, specifications and other materials produced by the Consultant in connection with the services rendered under this Agreement shall be the property of the City whether the project for which they are made is executed or not. The Consultant shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference and use in connection with the Consultant's endeavors. The Consultant shall not be responsible for any use of the said documents, drawings, specifications or other materials by the City on any project other than the project specified in this Agreement. 6. Compliance with Laws. The Consultant shall, in performing the services contemplated by this Agreement, faithfully observe and comply with all federal, state, and local laws, ordinances and regulations, applicable to the services rendered under this Agreement. 7 Indemnification. The Consultant shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the Consultant in performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. 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 Consultant and the City, its officers, officials, employees, and volunteers, the Consultant's liability hereunder shall be only to the extent of the Consultant's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Consultant'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. This hold harmless/indemnity does not apply to any declaratory judgement between the City and Insurers. 8. Insurance. The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. Consultant's maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Consultant to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Amounts and Scope of Insurance. Consultant shall obtain insurance of the types and with the limits described below: 1. Automobile Liability insurance 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. 2. Commercial General Liability insurance with limits no less than $2,000,000 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 independent contractors and personal injury and advertising injury. The City shall be named as an additional insured under the Consultant'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 endorsement form CG 20 26. CA revised May 2020 Page 2 3 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 4. Professional Liability with limits no less than $2,000,000 per claim and $2,000,000 policy aggregate limit. Professional Liability insurance shall be appropriate to the Consultant's profession. B. Public Entity Full Availability of Contractor Limits. If the Contractor maintains higher insurance limits than the minimums shown above, the Public Entity shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Contractor, irrespective of whether such limits maintained by the Contractor are greater than those required by this Contract or whether any certificate of insurance furnished to the Public Entity evidences limits of liability lower than those maintained by the Contractor. C. 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. D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. E. 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. F. 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. G. Failure to Maintain Insurance. Failure on the part of the Consultant to maintain the insurance as required shall constitute a material breach of 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. 9. Independent Contractor. The Consultant and the City agree that the Consultant is an independent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither the Consultant nor any employee of the Consultant 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 for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to the Consultant, or any employee of the Consultant. 10. Covenant Against Contingent Fees. The Consultant warrants that he has not employed or retained any company or person, other than a bonafide employee working solely for the Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay any company or person, other than a bonafide employee working solely for the Consultant, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from the award or making of this contract. For breach or violation of this warrant, the City shall have the right to annul this contract without liability, or in its discretion to deduct CA revised May 2020 4 Page 3 from the COOtR3{t price or consideration, or otherwise [eCOve[' the full amount Ofsuch f88. commission, percentage, brokerage fee, gift, orcontingent fee. 11. Discrimination Prohibited. Contractor, with regard to the work performed by it under this A8rearnen[, will not discriminate on the grounds ofrace, religion, creed, color, national origin, age, veteran aLatua, aex, agxuu| oriantadon, gender idenbLy, marital atuLua, political affi|iabon, the presence of any diaabi|itv, or any other protected o|aaa status under state or federal |avv, in the selection and retention of employees or procurement of materials or supplies. 12. Assigimmmemt. The Consultant oho|| not sublet or assign any of the services covered by this Agreement without the express written consent ofthe City. 13. Non -Waiver. Waiver by the City of any provision of this Agreement or any time limitation provided for in this Agreement shall not constitute @ waiver Ofany other provision. 14. Termination. A. The City reserves the right tuterminate this Agreement for convenience, at any time by giving ten (1O) days written notice tOthe Consultant. B. In the event that this Agreement is terminated by the City for convenience, the Consultant Sh8|| continue to receive payment, for all Recovery received by the City, as outlined in Exhibit B. But, if this Agreement is terminated by the City due to material breach of this Agreement, the Consultant shall not be entitled to receive payment, for all Recovery received by the City, as outlined in Exhibit B. C. In the even[ of the death of member, partner Or officer Ofthe Consultant, or any Of its supervisory personnel assigned tOthe project, theSUrvivingrnennberSOftheCOnSUU@nt hereby agree to complete the work under the terms ofthis Agreement, ifrequested todo aubythe City. This section shall not beabar torenegotiations ufthis Agreement between surviving members Ofthe Consultant and the City, ifthe City SOchooses. 15. Applicable Law; Venue; AttormeV,s Fees- This Agreement shall basubject to, and the COOSU|t8DL Sh8|| at all ti[O8S C000p|y with, all Gpp|iC8b|8 f8d8r8|' SL8t8 and |OC8| |@VVS, reAu|8UOnG. and ru|eS, including the provisions of the City of Tukwila Municipal Code and OrdiO8DC8S of the City of Tukwila. In the event any SUit, 8rbit[8UOD, or other proceeding is instituted tOenforce any term Ofthis Agreement, the parties specifically understand and agree that venue shall b8properly laid inKing County, Washington. The prevailing party inany such action Sh8|| be entitled UJ its Gtt0rney'S fees and COSt8 of suit. Venue for any action arising from Orrelated tOthis Agreement shall be exclusively in King County Superior Court. 18. SewerabiDitv and Survival. |fany term, condition or provision of this Agreement is declared void O[unenforceable Orlimited iDits application Oreffect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. The provisions of this A8re808Ot' which by their S8OS8 and COOtSXt are rH@SOO8b|y intended to SUrViVH the CO0p|8bOO. 8xpi[8UOD Or C8OC8||@tiOD of this AOr88O08Dt, Sh8|| SUn/iV8 tH[0iD8tiOD of this Agreement. 17. Notices. Notices to the City ofTukwila shall besent to the following address: City Clerk City OfTukwila 620OGouthcenLerBoulevard Tukwila, WA 98188 Notices toConsultant shall besent tOthe following address: Reotorioa|Research, LLC CA revised May 2020 8015 SE 28th Street, Suite 315 Mercer Island, WA 98040 18. Entire Agreement; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Consultant and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. DATED this day of , 20 CITY OF TUKWILA Thomas McLeod, Mayor ATTEST/AUTHENTICATED: Andy Youn-Barnett, City Clerk APPROVED AS TO FORM: Office of the City Attorney CONSULTANT: By: Printed Name: Title: CA revised May 2020 6 Page 5 EXHIBIT A SCOPE OF WORK 1. SCOPE OF SERVICES: The scope of services to be provided by Restorical Research (hereinafter "Consultant") under this agreement will be referred to as the " Cost Recovery Assistance," and will encompass two tasks: (Task 1) consulting services to assist City in preparing and undertaking an insurance recovery action against insurers who owe City duties of defense and indemnification for the costs of environmental investigation and remediation of contamination on, beneath or potentially migrating to or from the property pursuant to insurance policies; and (Task 2), a cost recovery/contribution action against third parties who (i) have caused, contributed to, or exacerbated contamination on, beneath or potentially migrating to or from the property, (ii), who may have insurance policies which address such contamination, and (iii) who are liable to City for some or all of the costs of environmental investigation and remediation. These actions collectively, or alone, are deemed the "Cost Recovery Assistance". Cost Recovery Assistance shall consist of: a. Performing such historical investigation of property records, transactional records, aerial photographs, sanborn maps, and other similar historical documents to identify potentially responsible persons. b. Assist in managing the flow of information between the City, attorneys, and consultants. City authorizes Consultant to be copied (including blind copy) on all correspondence between City, attorneys and consultants. City authorizes Consultant to receive copies of all invoices. c. Perforrrring such historical investigation of insurance records and related documents to identify insurance carriers and policies that may provide insurance coverage for contamination on, beneath or potentially migrating to or from the property that is the subject of claims or demands by the City, by any governmental agency, or a third party. Cost Recovery Assistance does not include: a. Environmental investigation needed to fully delineate the nature and extent of contamination. b. Environmental remediation needed to address such contamination. c. Expert witness services in any cost recovery, contribution, or insurance coverage litigation that City may hire counsel to initiate; and d. Legal Services as City understands that Consultant does not perform legal services or provide legal advice. 2. Consultant's scope of work for Task 2 includes providing all investigative results and materials from Task 1 to the selected attorney and consultant will provide consultancy, research and coverage support to the chosen attorney during the pendency of the claim. Once coverage has been secured for the City, Consultant will manage the claim (under the direction of the selected attorney) including but not limited to forensic accounting and tracking of invoices and payments. Such support is a requisite part of Task 2 and the related compensation. CA revised May 2020 Page 6 7 EXHIBIT B SCHEDULE OF RATES AND EXPENSES 1. TASK 1: As compensation for services to conduct a preliminary investigation and determine if a viable insurance policy and/or insurance coverage exists, Consultant shall receive $10.00. Consultant shall present to City an invoice once this investigation is complete. 2. TASK 2: After review of the deliverables from TASK 1, City, in its sole discretion, may elect to proceed to TASK 2. Task 2 involves the City hiring an attorney to pursue Cost Recovery Contribution against any of the insurance identified by Consultant in Task 1. Restorical will provide all investigative results and materials from Task 1 to the selected attorney and will provide consultancy, research and coverage support to the chosen attorney during the pendency of the claim. Such support is a requisite part of Task 2 and the related compensation. a. If City elects to proceed to TASK 2, as compensation for services to perform Cost Recovery Assistance for City, Consultant shall receive a contingency fee of Ten percent (10%) of "Recovery". Upon receipt of the Recovery, Consultant shall present to City an invoice. City shall pay the full amount of invoice, net 30, after receipt of the invoice. b. The parties understand and agree that a material inducement for Consultant to enter into this Agreement and perform the Task 1 services is the opportunity to pursue the Task 2 services. If the City elects not to pursue the Task 2 services the City agrees (i) it will not on its own, directly or indirectly, at anytime pursue any cost recovery contribution against any of the insurance identified by Consultant in providing the Task 1 services and (ii) that if the City pursues and Recovers any funds from the insurance identified by Consultant in providing the Task 1 services the City will be obligated to pay Consultant the Task 2 fee. 3. DEFINITION OF RECOVERY: The term "Recovery" as used herein are all payments, flowing to the City directly or indirectly, monetary or otherwise, from any one or more of the insurers of the City or of any potentially responsible party, whether by collection, settlement, judgment or litigation, before consideration of any income tax matters. Recovery includes but is not limited to payments for investigation and remediation work, sums attributable to interest, punitive damages and attorney's fees. 4. EXPENSES: City agrees to pay for all expenses related to title document production not to exceed $600 per site/project. Consultant will not charge for any additional expenses, including but not limited to scanning, copying, travel and/or lodging. CA revised May 2020 8 Page 7 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Nora Gierloff, Community Development Director, Aaron BeMiller, Finance Director, Joel Bush, Chief Technology Officer CC: Mayor Thomas McLeod DATE: April 22, 2025 SUBJECT: Contracts for Permitting, Tax, Budget & Transparency Technology Solutions ISSUE The Department of Community Development (DCD), Finance Department (FN), and Technology & Innovation Services (TIS) have partnered in researching and evaluating technology solutions to resolve issues and/or improve processes aimed at enhanced efficiency, transparency, and public access to information. BACKGROUND In 2022 the City implemented Central Square Finance Enterprise (FE) as its Enterprise Resource Planning (ERP) software to manage day-to-day operations. The ERP provides a centralized system that serves as the City's accounting system of record and allows all city departments and cross -functional teams to access the system for their individual needs. Earlier this year, the City began a "gap analysis" of our current ERP comprised by a cross- section of city employees. The gap analysis provides a comparison of the current performance of the ERP with desired or expected performance and looks for reasons preventing meeting the desired system performance. As part of the City's on -going evaluation of FE and its long-term viability as the City's ERP solution, three technology solutions are being requested as an improvement to the current system or to fill a need not offered in the current ERP. Staff has explored options for transitioning from our current permit tracking platform, Community Development by Central Square (formerly called TRAKiT), due to poor performance, tack of support, and excessive staff time spent on workarounds and maintenance. SmartGovbyGranicus, a modern and comprehensive cloud -based system has been selected as a replacement. SmartGov is currently in use by 51 jurisdictions across Washington State and has a strong track record of improving permitting workflows, enhancing transparency, and expanding public self-service capabilities. This upgrade will improve service delivery and support our broader goals of operational efficiency, accountability, and accessibility. DISCUSSION New technology solutions: SmartGov: Replaces the City's current permitting system with a modern and comprehensive cloud -based system which will improve the user experience for customers, automate many routine tasks, and improve the ability of inspectors to access and update the system in the field. It will also give Tukwila the tools to easily track our compliance with SB 5290, the state mandated permit review process and timeline changes. OpenGov: Provides solutions not available in the current ERP. 9 INFORMATIONAL MEMO Page 2 • Tax & Revenue: Transitions B&O tax collection from paper to a fully automated online system with compliance tracking. This automation will help build capacity by significantly reducing manual processing and allow our B&O analysts to spend more time in the field performing audits. Additionally, it will provide businesses with a seamless, transparent portal for online tax filing and payments. • Budget and Planning: Provides the City with a modern budget system to replace the current practice of manually keying budget information into excel spreadsheets. An automated budget system will free up capacity and allow for redeployment of staff to more strategic and value-added work. This solution provides public transparency and community engagement improvements, tracking performance and key performance indicators, as well as dashboards and reports to drive informed policy and business decisions. FINANCIAL IMPACT SmartGov: The proposed transition to SmartGov includes an annual software cost of $38,571 starting in 2025. A one-time data migration fee of $64,767 will be covered using existing funds from the Technology Fund. For comparison, our current system required an upfront investment of $312,750 in 2012 and has an ongoing annual operating cost of $62,805 OpenGov: Annual software costs in 2025 are $143,500. There is a one-time deployment fee of $116,860. Funding for the tax and revenue component will be paid by B&O collections. Funding for budget, planning, reporting, and transparency component will be paid in 2025 from available fund balance. On -going subscription costs will be allocated as part of the Indirect Cost Allocation Plan. The subscription costs above represent a 25% discount as part of the bundle and will remain in place as part of the on -going subscription costs. However, the discount expires June 2025 if not contracted by then. RECOMMENDATION Staff recommends the Committee approve these contracts and forward them to the Consent Agenda for the May 5th, 2025 City Council meeting. Alternatively, the Committee can forward these contacts to the May 12th, 2025 Committee of the Whole meeting as new business and the May 19" Regular Meeting for adoption. ATTACHMENTS A. Draft SmartGov Contract B. Draft OpenGov Contract - to be provided separately C. OpenGov Executive Summary 10 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/2025 AGENDAS/2025 Agenda Packets/2025 FIN - Agenda Packets/04-28-25 FIN/1 b - Contracts/April 28 F&G Software Contracts_Info Memo.docx �^�n^ � ~~"�� ~," Tukwila Contract Number: CONTRACT FOR SERVICES This /\oF8enneOt is entered into by and between the City of Tukwila, Washington, G non -charter optional municipal code city hereinafter referred toas"the Qtv."and G[@OiCUS hereinafter referred tooa"the [}nntractor."whose principal office is located at \8/8ShiOgk}D. DC The City and the Contractor are each individually @ ''P@rtv" and collectively the "Parties." WHEREAS, the City has determined the need to have certain services performed for its citizens but does not have the manpower or expertise to perform such services; and WHEREAS, the City desires to have the Contractor perform such services pursuant to certain terms and conditions; now, therefore, IN CONSIDERATION OF the mutual benefits and conditions hereinafter oontoined. the parties hereto agree as follows: 1. Scope and Schedule of Services tmbe Performed by Contractor. The Contractor shall perform those services described on Exhibit attached hengkz and incorporated herein by this reference as if fully Set forth. In performing such services, the COntn8[tO[ shall at all tirD8S COnlp|y with all Federal, State, and |nco| stotutnn, rules and ordinances applicable to the performance of such services and the handling ofany funds used inconnection therewith. The Contractor shall request and obtain prior written approval from the City if the scope or schedule is to be modified in any way. 2- Compensation and Method of Payment. The City shall pay the Contractor for services rendered according to the rote and method set forth on Exhibit B attached henak> and incorporated herein bythis reference. The total amount Lobepaid shall not exceed at o rate of a Contractor Budget. The Contractor shall apply the funds received under this Agreement within the nnaxirnurn limits set forth in this Aor8BnnenL The Contractor shall request prior approval from the City whenever the Contractor desires to amend its budget in any way. 4 Duration mfAgreement. This Agreement shall beinfull force and effect for aperiod commencing .20 ,ondending .20__.unless sooner terminated under the provisions hereinafter specified. 5. Independent Contractor. The Contractor and the City agree that the Contractor iaonindependent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither the COOt[8CtO[ nor any employee OfContractor 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 orsocial security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of anemployer with respect tothe Contractor, orany employee ofthe Contractor. T|SContract for Svcs Template 02'2021 Page 1ofS 11 ti Indemnification. A. Contractor Indemnification. The Contractor shall indemnify, defend and hold harmless the City its officers, officia|e, ernp|oyeee, volunteers and permitted successors and assigns harmless from any and all claims, injuries, damages, losses or suits including attorney fees (collectively, "Losses"), in connection with any claims, demands, suits or proceedings (collectively, "Claims") made Oralleged against the City bv8third party arising out OfO[resulting from the acts, errors or ornissions, or the intentional or negligent performance of the Contractor in performance of this Agreement, except for injuries anddannagesnausedbytheso|eneg|igan000ftheQtv. B. RCVV 4.24.115. However, should 8 court of competent jurisdiction d8tg[nlin8 that this Agreement iasubject to RCVV424.115. then, inthe event ofliability for damages arising out of bodily injury to persons ordamages tn property caused by or resulting from the concurrent negligence of the Contractor and the [ib/, its officers, nffinio|s, emp|oyees, and vo|unteers. Contractor's liability, including the duty and cost to defend, hereunder shall be only to the extent of Contractor's negligence. It in further specifically and expressly understood that the indemnification provided herein constitutes Contractor's waiver ofimmunity under Industrial Insurance, Title 51 FlCVV,solely for the purposes Ofthis indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section oho|| survive the expiration ortermination ofthis Agreement. C. Infringement Indemnification. In addition to Contractor's obligations under Section O.A., the Contractor Sh8|| indemnify, defend, and hold h8rnn|8SS the City and its directors, 0ffiCSrS, ennp|oyees, agents and other representatives against any Losses in connection with Claims made or alleged against the City by third party that the services, software or deliverables infringes 8 U.G. patent, copyright or other intellectual property rights Of any third party. The foregoing indemnification obligation dO9S not apply tO any C|8inn3 Or LOSSeS arising out of or relating toany: (a) access to or use of the software in combination with any hardware, system, software, network or other materials or service not provided or authorized by this Agreement or otherwise in writing by the Contractor; Or (b) modification of the SUftw8r8 other than: (i) by Or nnbehalf ofthe Contractor; or/ii\with the Contractor's written approval orinaccordance with Contractor's written specifications. D. K8itiqaUon. If any of the aervioeo, software or deliverables are, or in Contractor's opinion are likely to be, C|8irned to infringe, misappropriate orotherwise violate any third -party intellectual property right. or if the City's or any Authorized User's use of the servioem, software or deliverables is enjoined or threatened to be enjoined, the Contractor may, at its option and sole cost and expense: i. obtain the right for the City to continue to use the Services, Software and Deliverables materially as contemplated bythis Agreement; ii. modify or replace the aen/icea, software and de|iverob|en, in whole or in port, to seek to make the services, software and deliverables (as so modified or replaced) non -infringing, while providing materially equivalent features and functionality; or iii. by vv[itt8D OOtiC8 to the City' t8[nliO8t8 this Ag[88nl9Oi with respect to all or part Of the 8mrvioes. Gnftvvore and Oe|iverob|ee, and require the City to immediately cease any use of the Services, Software and Deliverables or any specified port or feature thereof, provided that if such termination occurs, the Contractor shall refund any prepaid fees to the City and provide transition services free ofcharge. T|SContract for Svcs Template 02-2O21 Page 2ofU 12 E. Linnh8dOn of Liability. In no event will either party be liable under or in connection with this agreement or its subject matter under any |ago| or equitable theory, including breach of contract, tort (including negligence), strict liability and otherwise, for any: (i) loss Ofrevenue Or profit; or (ii) consequential, incidental, indirect, exemplary, special, or punitive damages, regardless of whether such persons were advised of the possibility of such losses or damages or such losses or damages were otherwise foreseeable, and notwithstanding the failure of any agreed Vrother remedy ofits essential purpose. In no event shall the aggregate liability of either party arising out of or related to this agreement exceed the greater of two times the fees paid under the agreement Or$1'UOU.000;provided however, the limitation Ofliability set forth in this section shall not apply to: /i> Contractor's indemnification obligations for infringement claims made or brought against the City by third party as described herein, or (ii) damages related to c|oinne brought against the City due to Contractor's breach of Citv'a data, including but not |irni&*d to dannoges, penalties or other liabilities arising from government enforcement actions or breach notification requirements. The provisions of this section shall survive the expiration O[termination 0fthis agreement. 7 Insurance. Prior to commencing the Services, the Contractor shall procure and maintain at its sole cost and expense at least the following insurance, covering its obligations under this Agreement. A Insurance Policies. i. Commercial General LWith coverage of not |eaa than $2.000.000 per occurrence, $2.000.000 general aggregate, and $2.000.000 prod ucta-connp|etod operations aggregate |irnit, which shall cover liability arising from pnarnisos, openadons, independent contractors, prod uCtS-COrDp|9t8d Op8[8tioOS. stop gap liability, p8rSOD8| injury and advertising injury, and liability 8SSUnn9d under an insured contract. COnnrnerCi8| General Liability insurance shall boas least atbroad as ISO occurrence form CG 0001 and shall cover liability arising from prenniaga, opgradona, independent contractora, prod uote-oornp|eted openaUona, stop gap |iabi|ih/, personal injury and advertising injury, and liability oSSunned under on insured contract. The Commercial General Liability insurance shall be endorsed to provide per project genera| aggregate limit using |8[) form CG 25 03 05 OS or an equivalent endorsement. There shall be no exclusion for liability arising from exp|neion, collapse orunderground property damage. The City shall be named as an additional insured under the Contractor's Commercial General Liability insurance policy with respect to the work performed for the City using |SC) Additional Insured endorsement CG 20 10 10 01 and Additional Insured -Completed Operations endorsement CG 30 37 10 01 or substitute endorsements providing at least as broad coverage. ii. C»ber Liability Insurance: With coverage of not less than $1.000.000 per occurrence and $5.000.000 in the annual aggregate which Sho|| inC|ud8, but not be limited to, coveraQe, including defense, for the following losses or services: (1) B[88Ch Of City'S Data, including but not limited to liability arising from theft, dieeennination, and/or use ofCitv'a confidential and Personal Information as defined by R{}VV 42.50.590, including but not limited to, any information about an individual nn@iOt@iOgd by City, including: /@\ any information that can be used tOdistinguish or trace an individuo|'n idmnUty, such as nanne, social security number, date and place of birth, mother's maiden name, orbi0metrin records; and (b) any other information that islinked orlinkable toonindividual, such esmedical, educational, financial, and ennp|0ynn8nt information r8g8nd|SSS Of h0vv or vvh6rS the information is stored or transmitted. T|SContract for Svcs Template 02-2O21 Page 3ofU 13 (2) Network security liability arising from: (a)the unauthorized access to. use of, Or tampering with computer systems, by an outside portv, including hacker attacks or virus introduced by a third party; Or /b\ the inability of an authorized third p8Mx to gain access to supplier systems and/or Qh/ C)mta, including denial of service, unless C8uS8d by nl8ChGOiC8| or electrical failure; /C\ introduction of any unauthorized software computer code or virus causing damage to City Data or any other third party data. C}\ Event management services and first -party loss expenses for a data breach response including ChSiS nn8n8gennSnt ServiC8S. credit monitoring for individu8|3, public relations, legal service advice, notification of affected parties, independent information security forensics firm, and costs to re -secure, re-create and restore data or systems. iii Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. |v. Automobile Liability Insurance of rninirnurn combined single limit for per occurrence for bodily injury and property damage Of$1,0OO,OOO per accident, covering all OvvO9d, DOO- nvvned.hired and leased vehicles. Coverage shall bewritten onInsurance Services Office (|8{]) form CA 00 01 Or o substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed Loprovide contractual liability coverage. V. PnOf8SSiOn8| Li8bi|ity/ErrOrS8nd C)rniSSiODS Insurance (including Technology Errors and Omissions) 0fatleast $1.00O.U0Oper occurrence and $2.0OO.O00inthe annual aggregate. B. Additional Insurance Requirements. i. If the CODtn8Ct0[ nl8iDt8iOS higher iOSu[8DQ8 limits than the nliDinlunlS ShOvvO above, the City shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Contractor, irrespective of whether such limits maintained bythe Contractor are greater than those required bythis Agreement Orwhether any certificate Of insurance furnished to the City evidences limits Of liability |ovv9r than those maintained by the Contractor. ii. The insurance required in Section 7 shall be in a form and on terms and written by insurers with 8 Curr8ntA.K8. Best rating of not |eSS than A: V||. The C0rnnn8rCi8| General Liability, CyberLiabi|ih/ Insurance and Automobile Liability Insurance shall name the City as on additional insured, and shall contain, 0rbe endorsed tocontain, that they shall beprimary insurance as respect to the City. Any inaurance, oe|Anounance, or self -insured pool coverage maintained by the City shall be excess of the Contractor's insurance and aho|| not contribute with it. iii The Contractor shall provide the City with vvrbt8O n0do8 of any policy c@OogU8don within two business days of the receipt of such notice. Contractor ahoU obtain nop|ocennant insurance policies meeting the requirements of this Section 7. iv. Failure of the Contractor to maintain the insurance as required shall constitute a material breach Ofthis Agreement, upon which the City may, after giving five business days' notice to the Contractor to correct such breach, immediately terminate this Agreement. v� The Contractor's maintenance of insurance, its scope of coverage and limits as required herein shall not b8construed tOlimit the liability Vfthe Contractor to the coverage provided bysuch insurance, Orotherwise limit the {}ity'Srecourse t0any remedy available 8tlaw Vr in equity. T|SContract for Svcs Template 02-2O21 Page 4ofU 14 vi. Subcontractor's Insurance. The Contractor shall cause each and every subcontractor utilized by the Contractor in connection with the provision of Services ("Subcontractors"), to provide insurance coverage that complies with all applicable requirements of the Contractor -provided insurance as set forth herein, except the Contractor shall have sole responsibility for determining the limits of coverage required to be obtained by Subcontractors. The Contractor shall ensure the City is an additional insured on each and every Subcontractor's Commercial General liability insurance policy, using an endorsement as least as broad as ISO CG 20 10 10 01 for ongoing operations and CG 20 37 10 01 for completed operations. vii. The Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsements, evidencing the insurance requirements of the Contractor before commencement of the work. Upon request by the City, the Contractor shall furnish certified copies of all required insurance policies, including endorsements, required in this Agreement and evidence of all subcontractors' coverage. 8. Record Keeping and Reporting. A. Records Maintenance. The Contractor shall maintain accounts and records, including personnel, property, financial and programmatic records which sufficiently and properly reflect all direct and indirect costs of any nature expended and services performed in the performance of this Agreement and other such records as may be deemed necessary by the City to ensure the performance of this Agreement. B. Retention Period. These records shall be maintained for a period of seven years after termination hereof unless permission to destroy them is granted by the office of the archivist in accordance with RCW Chapter 40.14 and by the City. C. Public Records Requests. The Contractor acknowledges that the City is a public entity and is subject to the Public Records Act under Chapter 42.56 RCW. To the extent permitted by law, the City shall treat as exempt from treatment as a public record, and shall not disclose in response to a request made pursuant to any applicable public records law, any of the Contractor's Confidential Information. If a request is received for records the Contractor has submitted to the City and has identified as Confidential Information, the City will use its best efforts to provide the Contractor with notice of the request in accordance with RCW 42.56.540 and a reasonable time within which the Contractor may seek an injunction to prohibit the City's disclosure of the requested record. The City shall comply with any injunction or court order requested by the Contractor which prohibits the disclosure of any such Confidential Information; however, in the event a higher court overturns such injunction or court order, the Contractor shall reimburse the City for any fines or penalties imposed for failure to disclose such records. Nothing in this section prohibits the City from complying with RCW 42.56, or any other applicable law or court order requiring the release of public records, and the City shall not be liable to the Contractor for compliance with any law or court order requiring the release of public records. D. Compelled Disclosures. If either the Party or any of its Representatives is compelled by applicable law to disclose any Confidential Information then, to the extent permitted by law, that Party shall: (a) promptly, and prior to such disclosure, notify the other Party in writing of such requirement so that they can seek a protective order or other remedy or waive its rights under Section 3; and (b) provide reasonable assistance, at the Disclosing Party's cost, to the Disclosing Party in opposing such disclosure or seeking a protective order or other limitations on disclosure. If the Disclosing Party waives compliance or, after providing the notice and assistance required under this section, the Receiving Party remains required by law to disclose TIS Contract for Svcs Template 02-2021 Page 5 of 9 15 any CODfid8OU@| |OfO[0@dOD' the Receiving Party ShGU diSdOS8 only that portion Of the Confidential |DfOnn@UOn that the Receiving P@dx is |Sg@Uy required to disclose. This S8CUOn 8.2 shall not apply to Subscriber's response to a request made under the Public Records Act, Chapter 42.50RCVV. 9. Breach Notification. A. The Contractor shall maintain a data breach plan and shall implement the procedures required under such data breach plan on the onournanon of data bnaaoh, in compliance with the requirements of Washington's data breach notification |ovv codified at RCVV 42.56.590. The Contractor shall report, in writing, to the City any data breach involving data maintained by the Contractor On behalf Of the City ("City O@b]") including any r8@30n8b|8 belief that an unauthorized individual has onnesamd City Data. The report shall identify the nature of the event. a list of the affected individuals and the types of data, and the mitigation and investigation efforts of the Contractor. The Contractor eho|| make the report to the Qh/ immediately upon discovery of the data bonaoh, but in no event more than five business days after discovery of the data breach. The Contractor shall provide investigation updates to the City. B. The Contractor shall pn0nnoUy r8irnbUrS8 the City in hJU for all CO3tS incurred by the City in any investigation, n*madiadOn or litigation resulting from any data breach. The Contractor's duty to reimburse the City includes but is not limited to, reimbursing to the City its COSt incurred in doing the following: i. Notification to third parties whose information may have been or were compromised and to regulatory bodies. law enforcement agencies orother entities as may be required by law OrcOntn8Ct� . |i. Establishing and monitoring call center(s) and credit monitoring and/or identity restoration services to assist each person impacted by data breach of nature that, in the Qtv'S sole discretion, could |8@d to identity theft; and iii. Payment of legal fees and expensen, audit costs, fines and peno|Umo, and other fees imposed upon the City by regulatory agency, court oflaw, or contracting partner as a result ofthe data breach. C. Upon 8 data breach, the Contractor is not permitted to notify affected individuals without the express written consent of the City. Unless the Contractor is required by |ovv to provide notification to third parties or the affected individuals in o particular manner, the City shall control the time, place, and manner Ofsuch notification. 10. City Data. The Contractor does not claim ownership of, and assumes no responsibility with respect to any City Data defined as infonnadon, data, and oun&snt, in any form or nnediurn, oo||eoted, dovvn|oaded, or otherwise noceived, directly or indirectly from the City, on Authorized Personnel or end -users byorthrough the Contractor's Services. 11. Audits and Inspections. The records and documents with respect to all matters covered by this Agreement shall be subject at all times to inspection, review or audit by law during the performance of this Agreement. %I Termination. This Agreement may stany time be terminated by the City giving tothe Contractor 5Odays written notice ofthe Cih/ointention tnterminate the same. Failure toprovide products on schedule may result incontract termination. If the Contractor's insurance coverage iscanceled for any reason, the City shall have the right to terminate this Agreement immediately. T|SContract for Svcs Template U2-2O21 Page 6ofU 16 13. Effect of Termination or Expiration. On the expiration or earlier termination of this Agreement: A. Each Party shall continue to hold such Confidential Information in confidence pursuant to Section 8; and B. Each Party shall pay to the other all undisputed amounts accrued prior to and through the date of termination of this Agreement; and C. The provisions set forth in the following sections, and any other right or obligation of the parties in this Agreement that, by its nature should survive termination or expiration of this Agreement, will survive any expiration or termination of this Agreement. D. Within 60 days following such expiration or termination, the Contractor shall deliver to the City, in a format as requested by the City, the then most recent version of City Data maintained by the Contractor, provided that the City has at that time paid all undisputed fees then outstanding and any amounts payable after or as a result of such expiration or termination. E. In the event of (i) expiration or earlier termination of this Agreement, or (ii) the City no longer purchasing certain Services from the Contractor, if the City requests assistance in the transfer of City Data to a different vendor's applications ("Deconversion"), the Contractor will provide reasonable assistance. The Parties will negotiate in good faith to establish the relative roles and responsibilities of the Parties in effecting Deconversion, as well as the appropriate date for completion. 14. Taxes. The Contractor shall be solely responsible for the payment of any and all applicable taxes related to the Services provided under this Agreement; if such taxes are required to be passed through to the City by law, the same shall be duly itemized on timely billings submitted to the City by the Contractor. 15. Waiver. A waiver of any breach by either Party shall not constitute a waiver of any subsequent breach. 16. Third Party Beneficiaries. This Agreement is solely for the conveniences of the Parties and there are no third party beneficiaries to this Agreement. 17. Compliance with Laws. The Consultant shall comply with all applicable federal, state, and local laws and regulations in performing this Agreement. 18. Discrimination Prohibited. The Consultant, 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. 19. Assignment and Subcontract. The Contractor shall not assign or subcontract any portion of the services contemplated by this Agreement without the written consent of the City. al Entire Agreement; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Contractor and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. TIS Contract for Svcs Template 02-2021 Page 7 of 9 17 21. Severability and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. The provisions of this Agreement, which by their sense and context are reasonably intended to survive the completion, expiration or cancellation of this Agreement, shall survive termination of this Agreement. 22 Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk City of Tukwila 6200 Southcenter Blvd. Tukwila, Washington 98188 Notices to the Contractor shall be sent to the address provided by the Contractor upon the signature line below. 23. Applicable Law: Venue: Attorney's Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. 24. Force Majeure. Neither Party shall be responsible for failure to fulfill its obligations hereunder or liable for damages resulting from delay in performance as a result of war, fire, strike, pandemic, riot or insurrection, natural disaster, delay of carriers, governmental order or regulation, complete or partial shutdown of plant, unavailability of equipment, software, or services from suppliers, default of a subcontractor or vendor to the Party if such default arises out of causes beyond the reasonable control of such subcontractor or vendor, the acts or omissions of the other Party, or its officers, directors, employees, agents, contractors, or elected officials, and/or other occurrences beyond the Party's reasonable control ("Excusable Delay" hereunder). In the event of such Excusable Delay, performance shall be extended on a day for day basis or as otherwise reasonably necessary to compensate for such delay. 25. Counterparts. This Agreement may be executed in several counterparts, each of which when so executed shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. This Amendment shall be considered properly executed by a Party if executed by that Party and transmitted by facsimile or other electronic means including, without limitation, SeamlessDocs or other City -approved program, Tagged Image Format Files (TIFF), or Portable Document Format (PDF). 26. Conflict in Terms. In the event of a conflict between the terms of this Agreement and the terms in any other document, including but not limited to all Exhibits hereto, the terms of this Agreement shall prevail. Exhibit A: Scope of Services Exhibit B: Compensation Schedule Exhibit C: Service Level Agreement (SLA) Exhibit D: City of Tukwila Security Requirements Exhibit E: Data Protection and Information Security Exhibit TIS Contract for Svcs Template 02-2021 Page 8 of 9 18 CITY OF TUKWILA Thomas McLeod, Mayor Date ATTEST/AUTHENTICATED: Andy Youn, City Clerk APPROVED AS TO FORM: Office of the City Attorney CONTRACTOR: By: we obtained y Printed Name: Title: Address: Date: TIS Contract for Svcs Template 02-2021 Page 9 of 9 19 IT Scope of Services 20 GRAN ICUS THIS IS NOT AN INVOICE Granicus Proposal for Tukwila, WA Prepared By: Taylor Brodersen Phone: (814) 720-4368 Email: taylor.brodersen@granicus.com Order #: Q-384417 Prepared On: 18 Mar 2025 Expires On: 31 Dec 2024 Currency: Payment Terms: Order Form Prepared for Tukwila, WA USD Net 30 (Payments for subscriptions are due at the beginning of the period of performance.) Period of Performance: The term of the Agreement will commence on the date this document is signed and will continue for 12 months. Order #: Q-384417 Prepared: 18 Mar 2025 Page 1 of GRAN|CDS Order Form Tukwila, WA PRICING SUMMARY The pricing and terms within this Proposal are specific |othe products and volumes contained within this S0ortGovTnairing Upon Delivery lEOoh $2,896.00 SnOmrtGovCustom Implementation Upon Delivery lEaoh $0.00 8|ueB*amConnector Configuration Upon Delivery |Eooh $1'500.80 Project Management - SmartGov Upon Delivery lEoch $8'44785 Map Connector Configuration Upon Delivery lEOch $1.250.00 Parcel Connector Configuration Upon Delivery lEoCh $3.125.00 Portal Configuration Upon Delivery lEoCh $1,250.00 Fees Configuration (Poges) Upon Delivery 8Eaoh $4'248.00 Genena|CnnfiA Upon Delivery lEaoh $2'500.00 Workflow template customization Upon Delivery l Each $10.050D0 Stondord|zedOatoMigrohOn-Permits Upon Delivery lEOCh $5.000.00 Base Standardized Migration Cost Upon Delivery l Each $1.875.00 Data Migration - Documents & Attachments` Upon Delivery lEoch �3O0DOD ' � Dtandandbed[)otoMigrotion-Code Enforcement' Upon Delivery l Each � $3l25OO Standardized Data Migrahon-LicSnsing Upon Delivery lEmch $6.250D0 Contractor Connector Configuration Upon Delivery lEach $1'250.00 Financial Export Connector Configuration Upon Delivery lEach $2.500.00 Existing Merchant Connector Configuration Upon Delivery lEooh $1'500.00 LoserfioheConnector Configuration Upon Delivery lEaoh $3'125.00 Upon Delivery |Eoch $1'875.00 Active Directory Connector Configuration Order #:Q-3844l7 Prepared: l8Mar 2025 Page 2 of 21 (.7;-•''' GRAN ICUS Order Form Tukwila, WA 0110 I 01 111111111°°°r 'M1°1° Solution SmartGov - Enterprise Biiling „„,vgpft„, jyirm:requency 4, Annual 1 Each Annual Fee $27,424.00 SmartGov Code Enforcement Annual 1 Each $0.00 SmartGov Licensing Annual 1 Each $0.00 SmartGov Permitting Annual 1 Each $0.00 SmartGov Connector BlueBeam Annual 1 Each $1,372.00 SmartGov Connector Contractor Annual 1 Each $1,372.00 SmartGov Connector Financial Annual 1 Each $1,372.00 SmartGov Connector Merchant Annual 1 Each $1,372.00 SmartGov API Annual 1 Each $2,915.00 SmartGov Connector ECM-Laserfiche Annual 1 Each $1,372.00 SmartGov Connector Active Directory Annual 1 Each $1,372.00 te; SUBTQTAL.,e$ Order #: Q-384417 Prepared: 18 Mar 2025 Page 3 of ,3 GRAN|CDS PRODUCT DESCRIPTIONS Ordo,Form Tukwila, WA Annual subscription tOSrnOrtGovsoftware for: Permitting, Licensing, and Code Enforcement. Subscription includes the Public Portal. SrnOrtGov 3modGovCode Enforcement Annual subscription for SmOdGovCode Enforcement Module for managing service requests and complaints. SmmrtGovUCensing Annual subscription for SmortGovLicensing Module for contractor registration, rental registration, business licensing. SmodGovPenniKing Annual subscription for 5modGovPermitting Module for building and planning permits, inspections, and contacts. SmortGovCnnn8ctor B|ueB8om The 3modGovB|uebeomconnector provides the ability tocheck out documents for plan review and markup using the subscriber's 0uebeom subscription. 0uebeunnStudio isthe repository for 8|uebeQ0Projects and Sessions. Only one license/subscription is required for each jurisdiction. SmortGovhoining Includes uptutwo (2)hours ufUser Acceptance Training toprepare primary users for Validation, focused nnnavigation and testing best practices. Go -Live training will span o one /l> week pehod' provided in three (3) hour sessions focused on Permit/Application Intake, Review, Inspections and Code Enforcement processes /O3 needed). SmOrtGov Custom Implementation 3mOrtGQv Configuration based On implementation options selected. Order #:Q-3844l7 Prepared: l8Mar 2025 Page 4 of 21 GRAN ICUS Order Form Tukwila, WA Sotution„Despri, tie . BlueBeam Connector Configuration Assist Subscriber in configuring Bluebeam connection. Testing connection with Subscriber. Training provided on SmartGov check-out and check -in process only. The service and subscription for this connector does NOT include a subscription to Bluebeam or training on how to install or use the Bluebeam software. Subscriber is responsible for providing an active subscription to Bluebeam Studio Prime with REVU 21 to use the SmartGov Bluebeam Connector. Each user that will be checking permits out to Bluebeam from SmartGov or accessing the submittal documents from SmartGov for review in Bluebeam will need to be a member of the Studio Prime account. Bluebeam Software is comprised of a document management component, known as Studio, and a client -side application, Revu. Each component has three (3) editions with various features. Bluebeam Studio is the repository for Bluebeam Projects and Sessions. Only one license/subscription is required for each jurisdiction. It is available in the following editions: Bluebeam Studio Prime (Compatible with SmartGov) - Cloud -based (allows third party integrations with the Bluebeam Studio API), additional Bluebeam cost Bluebeam Studio (Not Compatible with SmartGov) - Cloud -based, included with the Bluebeam Revu user license at no additional Bluebeam cost Bluebeam Studio Enterprise (Not Compatible with SmartGov) - On - Premises Bluebeam Revu is the client -side software that provides the tools necessary to review and mark up documents. This software must be installed on each client computer that will be used to perform review and mark up tasks. Revu is available in the following editions: Revu Standard (Compatible with SmartGov) - Standard tool set Revu CAD (Compatible with SmartGov) - Includes all of the standard tools, along with plugins for 2D and 3D PDF creation Revu eXtreme (Compatible with SmartGov) - Includes all of the standard tools and CAD plugins, with additional features like Optical Character Recognition (OCR) and batch processes. The Revu user license includes access to Bluebeam Studio, but Bluebeam Studio is not sufficient for integration with SmartGov. Each SmartGov user that will be checking projects in and out of Bluebeam or performing review and mark up tasks must also be a member of the Bluebeam Studio Prime Order #: Q-384417 Prepared: 18 Mar 2025 Page 5 of ,5 GRANICUS Order Form Tukwila, WA Sotution Description account. Project Management - Project Management: Company Project Manager will act as an extension SmartGov of the Subscribers team and manage the implementation from start to finish. The Subscriber will have access to a personalized timeline which will be reviewed on a regular cadence. The Project Manager will partner with the Subscriber to coordinate all services, management of the project timeline, and help identify risks and/or issues. Project Management Services include: • Project planning and kickoff meetings. • Project schedule developed and maintained according to the SOW tasks, deliverables, dependencies, and resource assignments. • Status reporting and coordination of status meetings, bi-weekly, or as required. • Schedule monitoring and scope management. • Risk Management planning to identify, analyze, and mitigate risks. • Action Item and decision tracking, as well as resolving and escalating issues. • Change control management and issue tracking. • Company project resource management. • Verify product and deliverable acceptance with Subscriber. • Facilitating transition to Support. • Company's Project Manager will serve as the single point of contact for the project related to this SOW. Order #: Q-384417 Prepared: 18 Mar 2025 26 Page 6 of 21 GRAN ICUS Order Form Tukwila, WA Sotution tio Map Connector Configuration Configure subscribers ESRI GIS layers into SmartGov Troubleshooting the incoming data Train client on how to maintain the service in SmartGov. MAP/GIS Connector: Company will connect to ESRI Map Service provided by Subscriber and secured by a publicly trusted certificate issued by a Certificate Authority. Subscriber is responsible for contracting separately with ESRI map service provider and ESRI configuration. SmartGov Requirements for Map Connector Integration: ArcGIS for Server 10.4 or ArcGIS for server Enterprise Standard 10.7.1 (OR) ArcGIS Online. Subscriber Map Service must be publicly accessible and require no user authentication of any kind. The Map Service must include a parcel layer with a designated field having parcel numbers that exactly match those provided in the Parcel Connector source data (this layer may be the same as that provided for the Parcel Connector if no authentication is required for access). Support for Feature, Tiled, and Web Map Services is not included. Custom base maps are not supported. Base maps from the ESRI base map library will be available for use. The following base maps are currently included (subject to change): Imagery Imagery Hybrid Streets Topographic Navigation Streets (Night) Terrain with Labels Light Gray Canvas Dark Gray Canvas Oceans National Geographic Style Map Open Street Map Charted Territory Map Community Map Navigation (Dark Mode) Newspaper Map Human Geography Map Human Geography Dark Map Modern Antique Map Mid -Century Map Nova Map Colored Pencil Map Firefly Imagery Hybrid Order #: Q-384417 Prepared: 18 Mar 2025 Page 7 of ,7 GRANICUS Order Form Tukwila, WA Sotution USA Topo Maps 11....Descriptionsoissolossoississommossommossolossoli all11111111121IIIIIIMIMUSIIIMIRIIIIIIIII111111111111111111anaggfigainagfigainfigagglial Order #: Q-384417 Prepared: 18 Mar 2025 28 Page 8 of 21 GRAN ICUS Order Form Tukwila, WA Sotution 17.0espri tie. Parcel Connector Configuration Company will configure EITHER a Delimited Parcel Job OR ARCGIS Parcel Job on behalf of the Subscriber. Configure Subscribers parcel fields into SmartGov. Troubleshooting the incoming data and providing recommendations for Subscriber to resolve data gaps. Train Subscriber on how to maintain the service in SmartGov. Delimited File - A delimited file may be uploaded to the job at runtime. The delimited file option supports a single address for each individual parcel. Subscriber must use the template provided by Company. Parcel Layer - A parcel layer must be accessible by URL through an ESRI REST service. A secondary address -only layer may also be provided for parcels that have more than one address. The layer(s) must be publicly accessible and may be secured with a username and password. Subscriber is responsible for obtaining, cleaning, and maintaining all parcel data within the delimited file and/or ESRI Rest service. The configured parcel job will be available for Subscriber to run on - demand after go -live. The Parcel Layer Job can be set to run daily, weekly, monthly, or annually defined by how often Subscriber intends to update the Rest Service. Parcel source data (delimited file or parcel layer) must include the following fields, at a minimum: Parcel Number Primary Situs Address Primary Situs City Primary Situs State Primary Situs Zip Code Owner Name Owner Street Address Owner City populated for USA addresses only Owner State populated for USA addresses only Owner Zip Code populated for USA addresses only International Indicator with a value of "Y" for any owner address outside of the USA International line including the full regional equivalent of the city, state and zip code for any owner address outside of the USA Inclusion of the following additional fields is recommended: Parcel center point latitude in decimal degrees Parcel center point longitude in decimal degrees If using a secondary address layer with the ARCGIS Parcel job, the address layer must contain the following fields: Parcel Number Order #: Q-384417 Prepared: 18 Mar 2025 Page 9 of ,9 GRAN|CDS Ordo,Form Tukwila, WA Des Secondary 3itU5Address Secondary 5ituSCity Secondary SituoZip Code Inclusion ofthe following additional fields isrecommended for the secondary address layer: Address point latitude in decimal degrees Address point longitude in decimal degrees Portal Configuration Company will customize Subscriber's Portal by: ° Loading Subscriber logo. * Exposing all pennifs/busine8licenses identified inConfiguration workbook inwhich citizens will have access. * Advising onbest practices for public release timeline and access code configuration. * Load Subscriber custom verbiage into limited fields. p Provide the access URL (Uniform Resource Locator) for Subscriber toadd link tojuhsdichonweb pages. Includes consultant -led end-tn-endwo|kthnnughand demonstration of UAT/Vo|ida1ionprocess toSubscriber 1Oconfirm functionality meets configuration requirements. Fees Configuration (PogeS) Subscriber Fees configured based Onprovided Fee schedule and according tOConfiguration Workbook. Based onSubscriber fee schedule, defined inthe Order Form, Company will: * Setup Subscriber fee code calculations. • Load Subscriber PMS(Financial Management System) /GL (General Ledger Code) (according toConfiguration YVorkbook). * Load Subscriber Valuation table (according toConfiguration Workbook nr|CC (international Chamber ofCommerce) table). Setup Subscriber fixture costs (according toConfiguration Workbook). ° Load other Subscriber custom attributes / details o5required for Subscriber fee Co|Cu|atiOno (according to Configuration Workbook). Order #:Q-3844l7 Prepared: l8Mar 2025 30 Page 10of2l GRAN ICUS Order Form Tukwila, WA Sotution Description General Config General Configuration: As part of the General Configuration, Company will: • Create Subscriber database with best practice defaults. • Provide Validation environment access to Subscriber. • Load Subscriber users with Company standard permissions (according to Configuration Workbook). • Configure system values (locality, time zone, header and footer detail, standard report settings). • Load Client Code References/Violation types (according to Configuration Workbook). • Set up General Ledger accounts. • Load Subscriber logo. • Provide access to over 100 reports and output document templates. Subscriber receives credentials for environment when initial configuration items under General Configuration deliverable are completed. Workflow template Workflow Template Configuration: Company will configure process customization templates as defined in the Business Process Analysis phase for each department in scope: Building/Permits, Code Enforcement, Licensing and/or Recurring Inspections. Company will: Load Subscriber Code References/Violation types (according to Configuration Workbook). Load custom attributes/details within the limited fields available (not associated with fees, according to Configuration Workbook). Configure workflow to meet business requirements defined in Configuration Workbook. Consultant -led end -to -end walkthrough and demonstration of UAT/Validation process to Subscriber to confirm functionality meets configuration requirements. Completed upon configuration according to documentation in the Configuration Workbook Percentage: 100% Order #: Q-384417 Prepared: 18 Mar 2025 Page 11 of 231 GRANICUS Order Form Tukwila, WA DescriptionSotution, Standardized Data Migration - Permits Company will import permit data from a single client database source, approved by Company as standard source data. Multiple databases or unapproved source data will be subject to a change order for a custom data migration. The fields below are considered in -scope of a standard Permit data migration. The final output has many factors, including the fields available from the source data. Fields: Basic Permit Info, Parcel Contacts (Contractors will be listed on Contacts), Inspections, Fees as Notes, Notes The data migration process assumptions: Subscriber will provide an initial data set from source database. Company will provide a mapping workbook to Subscriber where Subscriber is responsible for mapping data fields to the preconfigured database fields. Subscriber will have two (2) weeks ten (10) business days to validate the initial data load and provide feedback. There is a maximum of two (2) rounds of feedback within that 10-day period. Thorough validation is necessary for any successful SmartGov data migration as there is no additional data cleansing possible after the final migration. No more system changes will be permitted after successful Validation. Subscriber to provide a final data set three (3) business days before Go -Live. Final data load will occur the day before Go -Live. Order #: Q-384417 Prepared: 18 Mar 2025 32 Page 12 of 21 GRAN|CDS Ordo,Form Tukwila, WA Des Base Standardized Migration Cost Base Data Migration includes non -module data such as contacts and b included inall standard data migration packages with one Ormore module data migrations. Company will import permit data from usingle client database source, approved bvCompany msstandard source data. Multiple databases or unapproved source data will besubject toochange order for ocustom data migration. The Standard Data Migration includes the Base fields and one ormore of the additional dotosebper the Sales Order Form. The fields below are considered in -scope Ofostandard data migration. The final output has many factors, including the fields available from the source data. Parcels: Ownership Addresses Contacts: Phone Address Email The data migration process assumptions: Subscriber will provide Oninitial data sot from source database. Company will provide o mopping workbook toSubscriber where Subscriber isresponsible for mapping data fields tothe preconfigureddatabase fields. Subscriber will have two /2> weeks ten (lO) business days tovalidate the initial data load and provide feedback. There isotwo (2)feedback that maximum ofrounds ofwithin lO-dOyperiod. Thorough validation iSnecessary for any successful SmortGovdata migration asthere isnOadditional data cleansing possible after the final migration. Nomore system changes will bmpermitted after successful Validation. Subscriber to provide o DnQ| data set three (3) business days before GQLk/e. Final data load will occur the day before Go -Live. SmOrtGovConnector Contractor Contractor Connector links tostate database foverify licenses and update contractor license information automatically. Alternatively, 3mortGovContractor Connector provides oone-time CSVupload that may include data out ofscope ofthe standard contact -contractor upload. SmadGovConnector Financial The SmartGov Financial Connector outputs a financial extract with a pre- determined format which may be written to the customer's FTP site, if desired, |ofacilitate automated external processing ofthe file. The customer may request the use ofanalternate delimiter ifOcomma isnot acceptable. The financial extract job may berun ondemand or scheduled torun unoconsistent basis (e.g.'daily, weekly, monthly, etc.). Companion reports designed for reconciliation and extract verification are also available. 5mortGovConnector Merchant Connection toone merchant |nthe back office and/or portal from olist of available options. Subscriber remains responsible for the relationship with the provider. Order #:Q-3844l7 Prepared: l8Mar 2025 GRANICUS Order Form Tukwila, WA Sotution Description Data Migration - Documents & Includes migration of clients documents/images as attachments to Attachments notes on permits, parcels, code enforcement cases or licenses. Client must provide easy mapping from documents to the object (permit, parcel, case etc...) it will be attached to Standardized Data Migration - Company will import Code Enforcement data from a single client Code Enforcement database source, approved by Company as standard source data. Multiple databases or unapproved source data will be subject to a change order for a custom data migration. The fields below are considered in -scope of a standard Code Enforcement data migration. The final output has many factors, including the fields available from the source data. Migration includes only current occurrence, no history. Fields: Case Request, Basic Case, Info Complainant, Contacts, Inspections, Fees as Notes, Notes The data migration process assumptions: Subscriber will provide an initial data set from source database. Company will provide a mapping workbook to Subscriber where Subscriber is responsible for mapping data fields to the preconfigured database fields. Subscriber will have two (2) weeks ten (10) business days to validate the initial data load and provide feedback. There is a maximum of two (2) rounds of feedback within that 10-day period. Thorough validation is necessary for any successful SmartGov data migration as there is no additional data cleansing possible after the final migration. No more system changes will be permitted after successful Validation. Subscriber to provide a final data set three (3) business days before Go -Live. Final data load will occur the day before Go -Live. Order #: Q-384417 Prepared: 18 Mar 2025 34 Page 14 of 21 GRAN ICUS Order Form Tukwila, WA Sotution„,,Despri, tie . Standardized Data Migration - Licensing Company will import Licensing data from a single client database source, approved by Company as standard source data. Multiple databases or unapproved source data will be subject to a change order for a custom data migration. The fields below are considered in -scope of a standard Licensing data migration. The final output has many factors, including the fields available from the source data. Migration includes only current occurrence, no history. Fields: License Info, Contacts, Parcels, Inspections, Fees as Notes, Notes The data migration process assumptions: Subscriber will provide an initial data set from source database. Company will provide a mapping workbook to Subscriber where Subscriber is responsible for mapping data fields to the preconfigured database fields. Subscriber will have two (2) weeks ten (10) business days to validate the initial data load and provide feedback. There is a maximum of two (2) rounds of feedback within that 10-day period. Thorough validation is necessary for any successful SmartGov data migration as there is no additional data cleansing possible after the final migration. No more system changes will be permitted after successful Validation. Subscriber to provide a final data set three (3) business days before Go -Live. Final data load will occur the day before Go -Live. Order #: Q-384417 Prepared: 18 Mar 2025 Page 15 of 135 GRANICUS Order Form Tukwila, WA Sotution,Description„. Contractor Connector Import of contractors from a delimited file or a SODA query (Washington Configuration and Arizona clients only). SODA Imports. Includes completed configuration of field mapping and credential link. The states of Washington and Arizona have access to a SODA load which will be configured according to existing keys. This runs on a scheduled recurrence. Delimited File Imports. The contractor data load is a one-time delimited file import. Future additions and changes to contractor information will be managed through manual updates in SmartGov. The Subscriber is responsible for any data cleansing and parsing. Includes: .csv data load (one-time data load) Provide Subscriber a .csv file to be completed by Subscriber. Configure to Subscriber's provided fields. Troubleshoot errors and provide Subscriber guidance on resolutions that Subscriber will need to resolve within the file. Delimited File Import Required fields below: Contractor Display Name Contractor Address Contractor City Contractor State Contractor Zip Contractor License Number License Type License Exp. D Order #: Q-384417 Prepared: 18 Mar 2025 36 Page 16 of 21 GRAN ICUS Order Form Tukwila, WA Sotution tio Financial Export Connector Configure financial export according to subscribers FMS (financial Configuration management system) as provided by Subscriber. Train Subscriber on how to export and set scheduler. Company will customize the configuration of the export to match Subscriber financial system input needs as documented. Available customizations include: Additional data fields Altered order of column information Alternate delimiter or fixed width formatting A header line is not part of the export. Financial Connector does not connect directly with any Financial Management System. If Subscriber provides a local (FTP) File Transfer Protocol, the Financial Connector can automatically upload to the defined FTP destination. By default, financial extract jobs are pre -configured and the included configuration of the Receipt Extract job will produce a comma -delimited file with the following data points: Receipt Number Receipt Date FMS/GL Code Fund GL Account Fee Amount Paid Fee Code Name Permit/License/Case Number Payer Name The included configuration of the Receipt Extract - FMS/GL Summary job will produce a comma -delimited file with the following data points: FMS/GL Code Fund GL Account Fee Amount Paid The file output of the financial extract may be written to the customer's FTP site, if desired, to facilitate automated external processing of the file. The customer may request the use of an alternate delimiter if a comma is not acceptable. The financial extract job may be run on demand or scheduled to run on a consistent basis (e.g., daily, weekly, monthly, etc.). Companion reports designed for reconciliation and extract verification are also available. Order #: Q-384417 Prepared: 18 Mar 2025 Page 17 of 137 GRAN|CDS Ordo,Form Tukwila, WA Des Existing Merchant Connector Configuration Configuremerchant connection. Test and troubleshoot connection during test process. Subscriber toprovide the required linking information for Company |o complete the setup. These will often include connection URLs'Login |Ds' and Transaction Keys. Requirements vary slightly depending onthe selected Merchant. SmartGovwill not test inProduction environments. SmOdGovAP| SmmrtGovAPI includes standard REST API Endpoints with documentation. The following information can berequested from 8madGov:Case assignments: All inspections and code enforcement cases assigned 1oO person Contact, Parcel and Custom Details, Inspections, Associations, attached photos, documents, and plans onPermits, Licenses, Recurring Inspections and Code Enforcement Cases with additional information uvoi|Ob|efor-Permits Contractor license status, conditions Licenses - Activities, conditions - Code enforcement Cases - Workflow, Items, Violations, Citations Parcel information including Lot/Long.situsaddress and parcel number Contact information such asname, phone number, email, address The following information can b*updated: All inspection information including assignment, requesting, scheduling, inspection status /pOss/fOi|>and results and adding photos and notes Code enforcement case information including workflow, details, notes and attachments contact names, addresses, emOi|s'phone numbers, points ofcontact The following information can becreated: Contacts Inspections, including creation Dfinspection actions, corrections and code references, notes Code enforcement case requests Code enforcement cases including violations, citations, details, workflow steps and inspections on the case Financial specific endpoints:Obtain fees due on licenses, permits, code enforcement cases and recurring inspections Apply payments tnpending receipts SmodGovConnector ECM- LO5erfiChe LosediCheconnector allows file attachments inSmodGov|obestored within LQSerfiChe'OnECM (Enterprise Content Management) system. The Los8rficheintegration was built incompliance with Ck»|8(Content Management |n|enop8robiNyServices) standards. Subscriber must have the LaxerficheCM|SGateway, version lOorhigher, installed and configured for the desired repository and beable toprovide obrowser binding URLthat 30urtGovcan reach from the cloud. The service and subscription for this connector does NOT include a subscription to Losediohe or training on how to indo|| or use the Loserfich* software. Order #:Q-3844l7 Prepared: l8Mar 2025 38 Page 18of2l GRAN ICUS Order Form Tukwila, WA Sotution Description Laserfiche Connector Configuration This connector allows file attachments in SmartGov to be stored within an ECM (Enterprise Content Management) system. The Laserfiche integration was built in compliance with CMIS (Content Management Interoperability Services) standards. Subscriber must have the Laserfiche CMIS Gateway, version 10 or higher, installed and configured for the desired repository and be able to provide a browser binding URL that SmartGov can reach from the cloud. The service and subscription for this connector does NOT include a subscription to Laserfiche or training on how to install or use the Laserfiche software. There are three Secured Functions that control access to the Laserfiche configuration options: Admin.JurisdictionBlobProvider - Allow user to all ECM settings and mappings AdminiurisdictionBlobProvider.ConfigureCMISConnection - Allow user to configure CMIS connection settings Admin.JurisdictionBlobProvider.ConfigureECMTemplates - Allow user to configure metadata template mappings Configure Subscriber's credentials and mapping in SmartGov. Meet with Subscriber and guide them through SmartGov to test the connection. SmartGov Connector Active Directory Connector for integration with Active Directory. SmartGov Requirements for integration with Active Directory: ADFS (Active Directory Federation Services) version 5.0 or higher (Windows server 2019 or higher). Mobile ADFS in Azure to support PKCE (Proof Key for Code Exchange) for OAuth 2.0 Azure AD expires every 24-months and the Subscriber has to maintain their secret keys in Production. For SSO (Single Sign On) SAML v2 Active Directory Connector Configuration Configure Subscribers credentials in SmartGov. Meet with Subscribers and guide through the connection in SmartGov for testing and maintaining. Subscriber is responsible for the installation and configuration of active directory technology. Order #: Q-384417 Prepared: 18 Mar 2025 Page 19 of 139 G-R Am|CuS Ordo,Form Tukwila, WA MS C N*UTU#NS ° This quote, and all products and services delivered hereunder are governed by the terms located at httrDs://granicus.com/legal/licensing, including any prod u ct-specific terms included therein (the "License Agreement"). If your organization and Granicus has entered into a separate agreement or is utilizing a contract vehicle for this transaction, the terms of the License Agreement are incorporated into such separate agreement or contract vehicle by reference, with any directly conflicting terms and conditions being resolved in favor of the separate agreement orcontract vehicle to the extent applicable. ° If submitting a Purchase Order, please include the following language: The pricing, terms and conditions of quote Q-384417doted 18 Mar 2025 are incorporated into this Purchase Order by reference and shall take precedence over any terms and conditions included inthis Purchase Order. ° This quote is exclusive ofapplicable state, |ocm|' and federal taxes, which' ifany, will be included in the invoice. It is the responsibility of Tukwila, WA to provide applicable exemption certificate(s). ° Any lapse in payment may result in suspension of service and will require the payment ofo setup fee to reinstate the subscription. Order #:Q-3844l7 Prepared: l8Mar 2025 40 Page 20of2l GRAN ICUS BILLING INFORMATION Billing Contact: Purchase Order ] - No Required? - Yes Order Form Tukwila, WA Billing Address: ' PO Number: . t If PO required Billing Email: I Billing Phone: If submitting a Purchase Order, please include the following language: The pricing, terms, and conditions of quote Q-384417 dated 18 Mar 2025 are incorporated into this Purchase Order by reference and shall take precedence over any terms and conditions included in this Purchase Order. AGREEMENT AND ACCEPTANCE By signing this document, the undersigned certifies they have authority to enter the agreement. The undersigned also understands the services and terms. Signature: Name: Title: Date: Order #: Q-384417 Prepared: 18 Mar 2025 Page 21 of Al IT Compensation Schedule 42 GRAN ICUS THIS IS NOT AN INVOICE Granicus Proposal for Tukwila, WA Prepared By: Taylor Brodersen Phone: (814) 720-4368 Email: taylor.brodersen@granicus.com Order #: Q-384417 Prepared On: 18 Mar 2025 Expires On: 31 Dec 2024 Currency: Payment Terms: Order Form Prepared for Tukwila, WA USD Net 30 (Payments for subscriptions are due at the beginning of the period of performance.) Period of Performance: The term of the Agreement will commence on the date this document is signed and will continue for 12 months. Order #: Q-384417 Prepared: 18 Mar 2025 Page 1 of 243 GRAN|CDS Order Form Tukwila, WA PRICING SUMMARY The pricing and terms within this Proposal are specific |othe products and volumes contained within this S0ortGovTnairing Upon Delivery lEOoh $2,896.00 SnOmrtGovCustom Implementation Upon Delivery lEaoh $0.00 8|ueB*amConnector Configuration Upon Delivery |Eooh $1'500.80 Project Management - SmartGov Upon Delivery lEoch $8'44785 Map Connector Configuration Upon Delivery lEOch $1.250.00 Parcel Connector Configuration Upon Delivery lEoCh $3.125.00 Portal Configuration Upon Delivery lEoCh $1,250.00 Fees Configuration (Poges) Upon Delivery 8Eaoh $4'248.00 Genena|CnnfiA Upon Delivery lEaoh $2'500.00 Workflow template customization Upon Delivery l Each $10.050D0 Stondord|zedOatoMigrohOn-Permits Upon Delivery lEOCh $5.000.00 Base Standardized Migration Cost Upon Delivery l Each $1.875.00 Data Migration - Documents & Attachments` Upon Delivery lEoch �3O0DOD ' � Dtandandbed[)otoMigrotion-Code Enforcement' Upon Delivery l Each � $3l25OO Standardized Data Migrahon-LicSnsing Upon Delivery lEmch $6.250D0 Contractor Connector Configuration Upon Delivery lEach $1'250.00 Financial Export Connector Configuration Upon Delivery lEach $2.500.00 Existing Merchant Connector Configuration Upon Delivery lEooh $1'500.00 LoserfioheConnector Configuration Upon Delivery lEaoh $3'125.00 Upon Delivery |Eoch $1'875.00 Active Directory Connector Configuration Order #:Q-3844l7 Prepared: l8Mar 2025 Page 2 of 21 (.7;-•''' GRAN ICUS Order Form Tukwila, WA 0110 I 01 111111111°°°r 'M1°1° Solution SmartGov - Enterprise Biiling „„,vgpft„, jyirm:requency 4, Annual 1 Each Annual Fee $27,424.00 SmartGov Code Enforcement Annual 1 Each $0.00 SmartGov Licensing Annual 1 Each $0.00 SmartGov Permitting Annual 1 Each $0.00 SmartGov Connector BlueBeam Annual 1 Each $1,372.00 SmartGov Connector Contractor Annual 1 Each $1,372.00 SmartGov Connector Financial Annual 1 Each $1,372.00 SmartGov Connector Merchant Annual 1 Each $1,372.00 SmartGov API Annual 1 Each $2,915.00 SmartGov Connector ECM-Laserfiche Annual 1 Each $1,372.00 SmartGov Connector Active Directory Annual 1 Each $1,372.00 te; SUBTQTAL.,e$ Order #: Q-384417 Prepared: 18 Mar 2025 Page 3 of 245 EXHIBIT C SERVICE LEVEL AGREEMENT (SLA) Service Level Agreement: The Services, in a production environment, are provided with the service levels described in this Exhibit C . SLAs are only applicable to production environments. SLAs will be available upon Customer's signature of Contractor's Go Live Acceptance Form for Customer's production environment. "Contractor" means [Granicus 99.9% Application Availability Actual Application Availability % = (Monthly Minutes (MM) minus Total Minutes Not Available (TM)) multiplied by 100) and divided by Monthly Minutes (MM), but not including Excluded Events Service Credit Calculation: An Outage will be deemed to commence when the Applications are unavailable to Customer in Customer's production environment hosted by Contractor and end when Contractor has restored availability of the Applications. Failure to meet the 99.9% Application Availability SLA, other than for reasons due to an Excluded Event, will entitle Customer to a credit as follows: Actual Application Availability % (as measured in a calendar month) Service Credit to be applied to Customer's monthly invoice for the affected month <99.9% to 99.75% 10% <99.75% to 98.25% 15% <98.25% to 97.75% 25% <97.75% to 96.75% 35% <96.75% 50% "Outage" means the accumulated time, measured in minutes, during which Customer is unable to access the Applications for reasons other than an Excluded Event. "Excluded Event" means any event that results in an Outage and is caused by: (a) the acts or omissions of Customer, its employees, customers, contractors or agents; (b) the failure or malfunction of equipment, applications or systems not owned or controlled by Contractor, including without limitation Customer Content, failures or malfunctions resulting from circuits provided by Customer, any inconsistencies or changes in Customer's source environment, including either intentional or accidental connections or disconnections to the environment; (c) Force Majeure events; (d) expected downtime during the Maintenance Periods described below; (e) any suspension of the Services in accordance with the terms of the Agreement to which this Exhibit C is attached; (f) the unavailability of required Customer personnel, including as a result of failure to provide Contractor with accurate, current contact information; or (g) using an Application in a manner inconsistent with the Documentation for such Application. "Maintenance Period" means scheduled maintenance periods established by Contractor to maintain and update the Services, when downtime may be necessary, as further described below. The Maintenance Period is used for purposes of the Service Credit Calculation; Contractor continuously maintains the production environment on a 24x7 basis to reduce disruptions. TIS EXH—Service Level Agreement 02-2021 Page 1 of 3 46 Customer Specific Maintenance Period 1. Customer will choose one of the following time zones for their Maintenance Period: a. United States Eastern Standard Time, b. GMT/UTC, c. Central European Time (CET) or d. Australian Eastern Standard Time (AEST). 2. Customer will choose one of the following days of the week for their Maintenance Period: Saturday, Sunday, Wednesday or Thursday. 3. Contractor will use up to 6 hours in any two consecutive rolling months (specifically: January and February; March and April; May and June; July and August; September and October; November and December) to perform Customer Specific Maintenance, excluding any customer requested Application updates. Downtime in excess of these six hours will be deemed to be an Outage. 4. Customer Specific Maintenance will occur between 12 am - 6 am during Customer's selected time zone. 5. Excluding any customer requested Application updates, Contractor will provide notice for planned downtime via an email notice to the primary Customer contact at least seven days in advance of any known downtime so planning can be facilitated by Customer. 6. Customer Specific Maintenance Windows also include additional maintenance windows mutually agreed upon by Customer and Contractor. 7. In absence of instruction from Customer, Contractor will by default perform Maintenance in the time zone where the Data Center is located. Non -Customer Specific Maintenance Period Contractor anticipates non -Customer Specific Maintenance to be performed with no or little (less than three hours per month) Customer downtime. If for any reason non -Customer Specific Maintenance requires downtime, Contractor will provide as much notice as reasonably possible of the expected window in which this will occur. Downtime in excess of three hours per month for Non -Customer Specific Maintenance will be deemed to be an Outage. "Monthly Minutes (MM)" means the total time, measured in minutes, of a calendar month commencing at 12:00 am of the first day of such calendar month and ending at 11:59 pm of the last day of such calendar month. "Total Minutes Not Available (TM)" means the total number of minutes during the calendar month that the Services are unavailable as the result of an Outage. Reporting and Claims Process: Service Credits will not be provided if: (a) Customer is in breach or default under the Agreement at the time the Outage occurred; or (b) the Outage results from an Excluded Event. TIS EXH—Service Level Agreement 02-2021 Page 2 of 3 47 Contractor will provide Customer with an Application Availability report on a monthly basis for each prior calendar month. Within 60 days of receipt of such report, Customer must request the applicable Service Credit by written notice to Contractor. Customer waives any right to Service Credits not requested within this time period. All performance calculations and applicable Service Credits are based on Contractor records and data unless Customer can provide Contractor with clear and convincing evidence to the contrary. The Service Level Agreements in this Exhibit, and the related Service Credits, apply on a per production environment basis. For the avoidance of doubt, Outages in one production environment may not be added to Outages in any other production environment for purposes of calculating Service Credits. Customer acknowledges that Contractor manages its network traffic in part on the basis of Customer's utilization of the Services and that changes in such utilization may impact Contractor's ability to manage network traffic. Therefore, notwithstanding anything else to the contrary, if Customer significantly changes its utilization of the Services from what is contracted with Contractor and such change creates a material and adverse impact on the traffic balance of the Contractor network, as reasonably determined by Contractor, the parties agree to cooperate, in good faith, to resolve the issue. TIS EXH—Service Level Agreement 02-2021 Page 3 of 3 48 Exhibit D City of Tukwila Security Requirements Introduction During the term of this agreement, Contractor shall operate an information security program designed to meet the confidentiality, integrity, and availability requirements of the service or product being supplied. The program shall include at a minimum the following security measures. Governance 1. Information Security Policy: Contractor shall develop, implement, and maintain an information security policy and shall communicate the policy to all staff and contractors. 2. Information Security Accountability: Contractor shall appoint an employee of at least manager level who shall be accountable for the overall information security program. 3. Risk Management: Contractor shall employ a formal risk assessment process to identify security risks which may impact the products or services being supplied, and mitigate risks in a timely manner commensurate with the risk. Asset Management 4. Asset Inventory: Contractor shall maintain an inventory of all hardware and software assets, including asset ownership. 5. Data Classification: Contractor shall develop, implement, and maintain a data classification scheme and process designed to ensure that data is protected according to its confidentiality requirements. Supply Chain Risk Management 6. Supplier Security Assessments: Contractor shall engage in appropriate due diligence assessments of potential suppliers which may impact the security of the services or products being supplied. 7. Security in Supplier Agreements: Contractor shall ensure that agreements with suppliers who may impact the security of the services or products being supplied contain appropriate security requirements. Human Resource Security 8. Information Security Awareness: Contractor shall develop and implement an information security awareness program designed to ensure that all employees and contractors receive security education as relevant to their job function. 9. Background Checks: Contractor shall conduct appropriate background checks on all new employees based on the sensitivity of the role that they are being hired for. Identity Management, Authentication and Access Control 10. Authentication: Contractor shall ensure that all access, by employees or contractors, to its information systems used to provide services or products being supplied shall require appropriate authentication controls that at a minimum will include: TIS EXH—Security Requirements 02-2021 Page 1 of 3 49 a. Strong passwords or multi -factor authentication for users b. Multi -factor authentication for all remote access 11. Authorization: Contractor shall ensure that all access to its information systems used to provide services or products being supplied shall be approved by management. 12. Privileged Account Management: Contractor shall appropriately manage and control privileged accounts on its information systems that at a minimum will include: a. Use of dedicated accounts for privileged activity b. Maintaining an inventory of privileged accounts 13. Access Termination: Contractor shall develop and maintain a process designed to ensure that user access is revoked upon termination of employment, or contract for contractors. Data Security 14. Encryption: Contractor shall ensure that all laptops, mobile devices, and removable media, including those that are owned by Contractor employees or contractors, which may be used to store, process, or transport organizational data are encrypted at all times. [Soaping guideline: This requirement may be removed if Contractor is not expected to possess any confidential or sensitive organizational data 15. Secure Disposal: Contractor shall ensure that all media which may be used to store, process, or transport organizational data is disposed of in a secure manner. [Soaping gui°ideVine: This requirement may be removed if Contractor is not expected to possess any confidential or sensitive organizational data} System Acquisition, Development and Maintenance 16. Security Requirements: Contractor shall ensure that information security requirements are defined for all new information systems, whether acquired or developed. 17. Separation of Environments: Contractor shall ensure that development and testing environments are separate from their production environment. 18. Data Anonymization: Contractor shall ensure that the City of Tukwila's data will not be used in the development or testing of new systems unless the data is appropriately anonymized. 19. Secure Coding: Contractor shall ensure that ail applications are developed with secure coding practices, including OWASP Top 10 Most Critical Web Application Security Risks. Physical and Environmental Security 20. Risk Assessment: Contractor shall use a formal risk assessment methodology to identify physical and environmental threats and shall implement controls to minimize the risks. TIS EXH—Security Requirements 02-2021 Page 2 of 3 50 Information Protection Processes and Procedure 21. Hardening: Contractor shall develop and implement security configuration baselines for all endpoint and network devices types. 22. Network Segregation: Contractor shall segregate its network into zones based on trust levels, and control the flow of traffic between zones. 23. Anti-Malware: Contractor shall ensure that all information systems that are susceptible to malware are protected by up-to-date anti-malware software. 24. Wireless Access Control: Contractor shall ensure that wireless network access is protected, including at a minimum: a. All wireless network access should be encrypted b. All wireless network access to the production network should be authenticated using multi -factor authentication such as machine certificates c. Wireless network access for personal devices and guest access should be segregated from the production network 25. Patching: Contractor shall evaluate, test, and apply information system patches in a timely fashion according to their risk. 26. Backup and Recovery: Contractor shall implement a backup and recovery process designed to ensure that data can be recovered in the event of unexpected loss. Protective Technology 27. Logging: Contractor shall ensure that security event logging requirements have been defined, and that all information systems are configured to meet logging requirements. 28. Intrusion Detection: Contractor shall deploy intrusion detection or prevention systems at the network perimeter. 29. URL Filtering: Contractor shall deploy tools to limit web browsing activity based on URL categories. 30. Denial of Service Protection: Contractor shall deploy controls to detect and mitigate denial of service attacks. Security Continuous Monitoring 31. Security Monitoring: Contractor shall deploy automated tools to collect, correlate, and analyze security event logs from multiple sources, and monitor them for suspected security incidents. 32. Vulnerability Assessments: Contractor shall conduct vulnerability assessments against all Internet -facing information systems on a regular basis, no less often than quarterly. 33. Penetration Testing: Contractor shall perform penetration tests on all web applications and services, in accordance with standard penetration testing methodologies, on a regular basis, no less often than annually. Information Security Incident Management 34. Incident Response: Contractor shall develop, implement, and maintain an information security incident response process, and will test the process on a regular basis, no less often than annually. TIS EXH—Security Requirements 02-2021 Page 3 of 3 51 Exhibit E Data Protection and Information Security This Data Protection and Information Security Exhibit ("Exhibit") is an attachment to the Agreement and sets forth the data protection and information security requirements of City of Tukwila. This Exhibit includes by reference the terms and conditions of the Agreement. In the event of any inconsistencies between this Exhibit and the Agreement, the parties agree that the terms and conditions of the Exhibit will prevail. Throughout the term of the Agreement and for as long as Contractor controls, possesses, stores, transmits, or processes Confidential Information as part of the Services provided to City of Tukwila, Contractor will comply with the requirements set forth in this Exhibit. Any breach of this Exhibit will be deemed a material breach under the Agreement. 1. Definitions "Authorized Personnel" for the purposes of this Exhibit, means Contractor's employees or subcontractors who: (i) have a need to receive or access Confidential Information or Personal Information to enable Contractor to perform its obligations under the Agreement; and (ii) are bound in writing with Contractor by confidentiality obligations sufficient for the protection of Confidential Information and Personal Information in accordance with the terms and conditions set forth in the Agreement and this Exhibit. "Common Software Vulnerabilities" (CSV) are application defects and errors that are commonly exploited in software. This includes but is not limited to: (i) The CWE/SANS Top 25 Programming Errors — see http://cwe.mitre.org/top25/ and http://www.sans.org/top25-software-errors/ (ii) The Open Web Application Security Project's (OWASP) "Top Ten Project" — see http://www.owasp.orq "Confidential Information" means certain non-public proprietary information that has economic value and is protected with reasonable safeguards to maintain its secrecy. Confidential Information may include, but is not limited to any financial data, business and other plans, specifications, equipment designs, electronic configurations, design information, product architecture algorithms, quality assurance plans, inventions (whether or not the subject of pending patent applications), ideas, discoveries, formulae, models, requirements, standards, trade and manufacturing secrets, drawings, samples, devices, demonstrations, technical information, all Personal Information as defined in RCW 42.56.590 that come within the Contractor's possession in the course of performance under this Agreement, as well as any and all intellectual and industrial property rights contained therein or in relation thereto; provided that, Personal Information shall remain Confidential Information even if at the time of disclosure or collection, or later, it is or becomes known to the public. "Industry Standards" mean generally recognized industry standards, best practices, and benchmarks including but not limited to: (i) Payment Card Industry Data Security Standards ("PCI DSS") — see http://www.pcisecuritystandards.orq/ (ii) National Institute for Standards and Technology — see http://csrc.nist.gov/ (iii) ISO / IEC 27000-series — see http://www.iso27001security.com/ TIS EXH—Data Protection and Info Security 02-2021 Page 1 of 10 52 (iv) COBIT 5 — http://www.isaca.org/cobit/ (v) Cyber Security Framework — see http://www.nist.gov/cyberframework/ (vi) Cloud Security Alliance — see https://cloudsecurityalliance.org/ (vii) Other standards applicable to the services provided by Contractor to City of Tukwila "Information Protection Laws" mean all local, state, federal and international laws, standards, guidelines, policies, regulations and procedures applicable to Contractor or City of Tukwila pertaining to data security, confidentiality, privacy, and breach notification. "Personal Information" also known as Personally Identifiable Information (PII), is defined in RCW 42.56.590 and includes information of City of Tukwila customers, employees and subcontractors or their devices gathered or used by Contractor that can be used on its own or combined with other information to identify, contact, or locate a person, or to identify an individual or his or her device in context. Examples of Personal Information include name, social security number or national identifier, biometric records, driver's license number, device identifier, IP address, MAC address, either alone or when combined with other personal or identifying information which is linked or linkable to a specific individual or device, such as date and place of birth, mother's maiden name, etc. "Security Incident" is any actual or suspected occurrence of: (i) Unauthorized access, use, alteration, disclosure, loss, theft of, or destruction of Confidential Information or the systems / storage media containing Confidential Information (ii) Illicit or malicious code, phishing, spamming, spoofing (iii) Unauthorized use of, or unauthorized access to, Contractor's systems (iv) Inability to access Confidential Information or Contractor systems as a result of a Denial of Service (DOS) or Distributed Denial of Service (DDOS) attack (v) Loss of Confidential Information due to a breach of security "Security Vulnerability" is an application, operating system, or system flaw (including but not limited to associated process, computer, device, network, or software weakness) that can be exploited resulting in a Security Incident. 2. Roles of the Parties and Compliance with Information Protection Laws As between City of Tukwila and Contractor, City of Tukwila shall be the principal and Contractor shall be its agent with respect to the collection, use, processing and disclosure of all Confidential Information. The Parties shall comply with their respective obligations as the principal (e.g., data owner/controller/covered entity) and agent (e.g., data processor/business associate/trading partner) under all Information Protection Laws. The Parties acknowledge that, with respect to all Confidential Information processed by Contractor for the purpose of providing the Services under this Agreement: a. City of Tukwila shall determine the scope, purpose, and manner in which such Confidential Information may be accessed or processed by Contractor, and Contractor shall limit its access to or use of Confidential Information to that which is necessary to TIS EXH—Data Protection and Info Security 02-2021 Page 2 of 10 53 provide the Services, comply with applicable laws, or as otherwise directed by City of Tukwila; b. Each party shall be responsible for compliance with Information Protection Laws in accordance with their respective roles; and c. Contractor and City of Tukwila shall implement the technical and organizational measures specified in this Exhibit and any additional procedures agreed upon pursuant to a Statement of Work ("SOW") to protect Confidential Information against unauthorized use, destruction or loss, alteration, disclosure or access. 3. General Security Requirements Contractor will have an information security program that has been developed, implemented and maintained in accordance with Industry Standards. At a minimum, Contractor's information security program will include, but not be limited to, the following elements: 3.1 Information Security Program Management. Contractor will have or assign a qualified member of its workforce or commission a reputable third -party service provider to be responsible for the development, implementation and maintenance of Contractor's enterprise information security program. 3.2 Policies and Standards. To protect City of Tukwila Confidential Information, Contractor will implement and maintain reasonable security that complies with Information Protection Laws and meets data security Industry Standards. a. Security Policies and Standards. Contractor will maintain formal written information security policies and standards that: (i) Define the administrative, physical, and technological controls to protect the confidentiality, integrity, and availability of Confidential Information, City of Tukwila systems, and Contractor systems (including mobile devices) used in providing Services to City of Tukwila (ii) Encompasses secure access, retention, and transport of Confidential Information (iii) Provide for disciplinary or legal action in the event of violation of policy by employees or Contractor subcontractors and vendors (iv) Prevent unauthorized access to City of Tukwila data, City of Tukwila systems, and Contractor systems, including access by Contractor's terminated employees and subcontractors (v) Employ the requirements for assessment, monitoring and auditing procedures to ensure Contractor is compliant with the policies (vi) Conduct an annual assessment of the policies, and upon City of Tukwila written request, provide attestation of compliance. b. In the SOW or other document, Contractor will identify to City of Tukwila all third -party vendors (including those providing subcontractors to Contractor) involved in the provision of the Services to City of Tukwila, and will specify those third -party vendors that will have access to Confidential Information. TIS EXH—Data Protection and Info Security 02-2021 Page 3 of 10 54 3.3 Security and Privacy Training. Contractor, at its expense, will train new and existing employees and subcontractors to comply with the data security and data privacy obligations under this Agreement and this Exhibit. Ongoing training is to be provided at least annually and more frequently as appropriate or requested by City of Tukwila. City of Tukwila may provide specific training material to Contractor to include in its employee/subcontractor training. 3.4 Access Control. Contractor will ensure that City of Tukwila Confidential Information will be accessible only by Authorized Personnel after appropriate user authentication and access controls (including but not limited to two -factor authentication) that satisfy the requirements of this Exhibit. Each Authorized Personnel shall have unique access credentials and shall receive training which includes a prohibition on sharing access credentials with any other person. Contractor should maintain access logs relevant to City of Tukwila Confidential Information for a minimum of six years or other mutually agreed upon duration. 3.5 Data Backup. The parties shall agree in an SOW or other document upon the categories of City of Tukwila Confidential Information that are required to be backed up by Contractor. Unless otherwise agreed to in writing by City of Tukwila, backups of City of Tukwila Confidential Information shall reside solely in the United States. For the orderly and timely recovery of Confidential Information in the event of a service interruption: a. Contractor will store a backup of Confidential Information at a secure offsite facility and maintain a contemporaneous backup of Confidential Information on -site to meet needed data recovery time objectives. b. Contractor will encrypt and isolate all City of Tukwila backup data on portable media from any backup data of Contractor's other customers. 3.6 Business Continuity Planning (BCP) and Disaster Recovery (DR). Contractor will maintain an appropriate business continuity and disaster recovery plan to enable Contractor to adequately respond to, and recover from, business interruptions involving City of Tukwila Confidential Information or services provided by Contractor to City of Tukwila. a. At a minimum, Contractor will test the BCP and DR plan annually, in accordance with Industry Standards, to ensure that the business interruption and disaster objectives set forth in this Exhibit have been met and will promptly remedy any failures. Upon City of Tukwila's request, Contractor will provide City of Tukwila with a written summary of the annual test results. b. In the event of a business interruption that activates the BCP and DR plan affecting the Services or Confidential Information of City of Tukwila, Contractor will notify City of Tukwila's designated Security Contact as soon as possible. c. Contractor will allow City of Tukwila or its authorized third party, upon a minimum of 30 days' notice to Contractor's designated Security Contact, to perform an assessment of Contractor's BCP and DR plan once annually, or more frequently if agreed to in an SOW or other document. Following notice provided by City of Tukwila, the parties will meet to determine the scope and timing of the assessment. TIS EXH—Data Protection and Info Security 02-2021 Page 4 of 10 55 3.7 Network Security. Contractor agrees to implement and maintain network security controls that conform to Industry Standards including but not limited to the following: a. Firewalls. Contractor will utilize firewalls to manage and restrict inbound, outbound and internal network traffic to only the necessary hosts and network resources. b. Network Architecture. Contractor will appropriately segment its network to only allow authorized hosts and users to traverse areas of the network and access resources that are required for their job responsibilities. c. Demilitarized Zone (DMZ). Contractor will ensure that publicly accessible servers are placed on a separate, isolated network segment typically referred to as the DMZ. d. Wireless Security. Contractor will ensure that its wireless network(s) only utilize strong encryption, such as WPA2. e. Intrusion Detection/Intrusion Prevention (IDS/IPS) System. Contractor will have an IDS and/or IPS in place to detect inappropriate, incorrect, or anomalous activity and determine whether Contractor's computer network and/or server(s) have experienced an unauthorized intrusion. 3.8 Application and Software Security. Contractor, should it provide software applications or Software as a Service (SaaS) to City of Tukwila, agrees that its product(s) will remain secure from Software Vulnerabilities and, at a minimum, incorporate the following: a. Malicious Code Protection. Contractor's software development processes and environment must protect against malicious code being introduced into its product(s) future releases and/or updates. b. Application Level Security. Contractor must use a reputable third party to conduct static/manual application vulnerability scans on the application(s) software provided to City of Tukwila for each major code release or at the time of contract renewal. An internally produced static/manual test from the Contractor will not be accepted. Results of the application testing will be provided to City of Tukwila in a summary report and vulnerabilities categorized as Very High, High or that have been identified as part of the OWASP Top 10 and SANS Top 25 within 10 weeks of identification. c. Vulnerability Management. Contractor agrees at all times to provide, maintain and support its software and subsequent updates, upgrades, and bug fixes such that the software is and remains secure from Common Software Vulnerabilities. d. Logging. Contractor software that controls access to Confidential Information must log and track all access to the information. e. Updates and Patches. Contractor agrees to promptly provide updates and patches to remediate Security Vulnerabilities that are exploitable. Upon City of Tukwila's request, Contractor shall provide information on remediation efforts of known Security Vulnerabilities. 3.9 Data Security. Contractor agrees to preserve the confidentiality, integrity and accessibility of City of Tukwila Confidential Information with administrative, technical and physical measures that conform to Industry Standards that Contractor then applies to its own systems and processing environment. Unless otherwise agreed to in writing by City of Tukwila, Contractor agrees that any and all City of Tukwila Confidential Information will be stored, processed, and maintained solely on designated systems located in the continental United States. Additionally: TIS EXH—Data Protection and Info Security 02-2021 Page 5 of 10 56 a. Encryption. Contractor agrees that all City of Tukwila Confidential Information and Personal Information will be encrypted with a Federal Information Processing Standard (FIPS) compliant encryption product, also referred to as 140-2 compliant. Symmetric keys will be encrypted with a minimum of 128-bit key and asymmetric encryption requires a minimum of 1024 bit key length. Encryption will be utilized in the following instances: • City of Tukwila Confidential Information and Personal Information will be stored on any portable computing device or any portable storage medium. • City of Tukwila Confidential Information and Personal Information will be transmitted or exchanged over a public network. b. Data Segregation. Contractor will segregate City of Tukwila Confidential Information and Personal Information from Contractor's data and from the data of Contractor's other customers or third parties. 3.10 Data Re -Use. Contractor agrees that any and all data exchanged shall be used expressly and solely for the purposes enumerated in the Agreement. Data shall not be distributed, repurposed or shared across other applications, environments, or business units of Contractor. Contractor further agrees that no Confidential Information of any kind shall be transmitted, exchanged or otherwise passed to other parties except on a case -by -case basis as specifically agreed to in writing by City of Tukwila. 3.11 Data Destruction and Data Retention. Upon expiration or termination of this Agreement or upon City of Tukwila's written request, Contractor and its Authorized Personnel will promptly return to City of Tukwila all City of Tukwila Confidential Information and/or securely destroy City of Tukwila Confidential Information. At a minimum, destruction of data activity is to be performed according to the standards enumerated by the National Institute of Standards, Guidelines for Media Sanitization — see http://csrc.nist.gov/. If destroyed, an officer of Contractor must certify to City of Tukwila in writing within 10 business days all destruction of City of Tukwila Confidential Information. If Contractor is required to retain any City of Tukwila Confidential Information or metadata to comply with a legal requirement, Contractor shall provide notice to both the general notice contact in the Agreement as well as City of Tukwila's designated Security Contact. 3.12 Right to Audit. Upon a minimum of 30 days' written notice to Contractor, Contractor agrees to allow City of Tukwila or a mutually agreed upon independent third party under a Non - Disclosure Agreement to perform an audit of Contractor's policies, procedures, software, system(s), and data processing environment at City of Tukwila's expense to confirm compliance with this Exhibit. Prior to commencement of the audit, the parties will discuss the scope of the audit and the schedule. Contractor shall provide reasonable support to the audit team. Upon request Contractor will provide any relevant third party assessment reports such as SOC 2, PCI DSS Report on Compliance, or ISO 27001 certification. Unless critical issues are identified during the audit, such audits will be restricted to once in any 12 month period. If issues are identified, Contractor shall provide a remediation plan to City of Tukwila to remedy such issues at Contractor's expense. TIS EXH—Data Protection and Info Security 02-2021 Page 6 of 10 57 3.13 Security Testing. Contractor, at its expense, will allow City of Tukwila to conduct static, dynamic, automated, and/or manual security testing on its software products and/or services, hardware, devices, and systems to identify Security Vulnerabilities on an ongoing basis. Should any vulnerabilities be discovered, Contractor agrees to notify City of Tukwila and create a mutually agreed upon remediation plan to resolve all vulnerabilities identified. City of Tukwila has the right to request or conduct additional reasonable security testing throughout the Term of the Agreement. 4. Security Incident / Data Breach 4.1 Security Contact. The individuals identified below shall serve as each party's designated Security Contact for security issues under this Agreement. City of Tukwila Security Contact: Name Address Phone Email Contractor Security Contact: Name Address Phone Email TIS EXH—Data Protection and Info Security 02-2021 Page 7 of 10 58 4.2 Requirements. Contractor will take commercially reasonable actions to ensure that City of Tukwila is protected against any and all reasonably anticipated Security Incidents, including but not limited to: (i) Contractor's systems are continually monitored to detect evidence of a Security Incident (ii) Contractor has a Security Incident response process to manage and to take corrective action for any suspected or realized Security Incident (iii) Upon request Contractor will provide City of Tukwila with a copy of its Security Incident policies and procedures. If a Security Incident affecting City of Tukwila occurs, Contractor, at its expense and in accordance with applicable Information Protection Laws, will immediately take action to prevent the continuation of the Security Incident. 4.3 Notification. Within eight hours of Contractor's initial awareness of a Security Incident or other mutually agreed upon time period, Contractor will notify City of Tukwila of the incident by calling by phone the City of Tukwila Security Contact(s) listed above. 4.4 Investigation and Remediation. Upon Contractor's notification to City of Tukwila of a Security Incident, the parties will coordinate to investigate the Security Incident. Contractor shall be responsible for leading the investigation of the Security Incident, but shall cooperate with City of Tukwila to the extent City of Tukwila requires involvement in the investigation. Contractor shall involve law enforcement in the investigation if requested by City of Tukwila. Depending upon the type and scope of the Security Incident, City of Tukwila personnel may participate in: (i) interviews with Contractor's employees and subcontractors involved in the incident; and (ii) review of all relevant records, logs, files, reporting data, systems, Contractor devices, and other materials as otherwise required by City of Tukwila. Contractor will cooperate, at its expense, with City of Tukwila in any litigation or investigation deemed reasonably necessary by City of Tukwila to protect its rights relating to the use, disclosure, protection and maintenance of Confidential Information. Contractor will reimburse City of Tukwila for actual costs incurred by City of Tukwila in responding to, and mitigating damages caused by any Security Incident, including all costs of notice and remediation which City of Tukwila, in its sole discretion, deems necessary to protect such affected individuals in light of the risks posed by the Security Incident. Contractor will, at Contractor's own expense, provide City of Tukwila with all information necessary for City of Tukwila to comply with data breach recordkeeping, reporting and notification requirements pursuant to Information Protection Laws. Contractor will use reasonable efforts to prevent a recurrence of any such Security Incident. Additionally, Contractor will provide (or reimburse City of Tukwila) for at least one year of complimentary access for one credit monitoring service, credit protection service, credit fraud alert and/or similar services, which City of Tukwila deems necessary to protect affected individuals in light of risks posed by a Security Incident. 4.5 Reporting. Contractor will provide City of Tukwila with a final written incident report within five business days after resolution of a Security Incident or upon determination that the Security Incident cannot be sufficiently resolved. TIS EXH—Data Protection and Info Security 02-2021 Page 8 of 10 59 5. Confidential Information or Personal Information 5.1 Authorized Personnel. Contractor will require all Authorized Personnel to meet Contractor's obligations under the Agreement with respect to Confidential Information or Personal Information. Contractor will screen and evaluate all Authorized Personnel and will provide appropriate privacy and security training, as set forth above, in order to meet Contractor's obligations under the Agreement. Upon City of Tukwila's written request, Contractor will provide City of Tukwila with a list of Authorized Personnel. Contractor will remain fully responsible for any act, error, or omission of its Authorized Personnel. 5.2 Handling of Confidential Information or Personal Information. Contractor will: a. Keep and maintain all Confidential Information and Personal Information in strict confidence in accordance with the terms of the Agreement b. Use and disclose Confidential Information and/or Personal Information solely and exclusively for the purpose for which the Confidential Information or Personal Information is provided pursuant to the terms and conditions of the Agreement. Contractor will not disclose Confidential Information or Personal Information to any person other than to Authorized Personnel without City of Tukwila's prior written consent, unless and to the extent required by applicable law, in which case, Contractor will use best efforts to notify City of Tukwila before any such disclosure or as soon thereafter as reasonably possible. In addition, Contractor will not produce any Confidential Information or Personal Information in response to a non -legally binding request for disclosure of such Personal Information. 5.3 Data and Privacy Protection Laws. Contractor represents and warrants that its collection, access, use, storage, disposal, and disclosure of Personal Information complies with all applicable federal, state, local and foreign data and privacy protection laws, as well as all other applicable regulations and directives. 6. Third Party Security 6.1 Contractor will conduct thorough background checks and due diligence on any third and fourth parties which materially impact Contractor's ability to provide the products and/or Services to City of Tukwila as described in the Agreement. 6.2 Contractor will not outsource any work related to its products or the Services provided to City of Tukwila in countries outside the United States of America, which have not been disclosed in the Agreement or without prior written approval from City of Tukwila Legal and Information Security. If Contractor desires to outsource certain work during the Term of the Agreement, Contractor shall first notify City of Tukwila so that the parties can ensure adequate security protections are in place with respect to the Services provided to City of Tukwila. TIS EXH—Data Protection and Info Security 02-2021 Page 9 of 10 60 7. Payment Cardholder Data 7.1 If Contractor accesses, collects, processes, uses, stores, transmits, discloses, or disposes of City of Tukwila and/or City of Tukwila customer credit, debit, or other payment cardholder information, Contractor agrees to the following additional requirements: a. Contractor, at its sole expense, will comply with the Payment Card Industry Data Security Standard ("PCI DSS"), as may be amended or changed from time to time, including without limitation, any and all payment card industry validation actions (e.g., third party assessments, self -assessments, security vulnerability scans, or any other actions identified by payment card companies for the purpose of validating Contractor's compliance with the PCI DSS). b. Contractor will maintain a continuous PCI DSS compliance program. Annually, Contractor agrees to provide evidence of PCI DSS compliance in the form of a Qualified Security Assessor ("QSA") Assessment Certificate, a PCI Report on Compliance ("ROC"), or evidence that Contractor is included on the Visa or MasterCard list of PCI DSS Validated Service Providers. c. Contractor will ensure that subcontractors approved by City of Tukwila, in accordance with Section 6.2, comply with and maintain a continuous PCI DSS compliance program if the subcontractor provides any service on behalf of Contractor that falls within PCI DSS scope. The Subcontractor must provide evidence of PCI DSS compliance in the form of a Qualified Security Assessor ("QSA") Assessment Certificate, a PCI Report on Compliance ("ROC"), or evidence that Subcontractor is included on the Visa or MasterCard list of PCI DSS Validated Service Providers. d. Contractor will immediately notify City of Tukwila if Contractor is found to be non- compliant with a PCI DSS requirement or if there is any breach of cardholder data impacting City of Tukwila or its customers. 8. Changes In the event of any change in City of Tukwila's data protection or privacy obligations due to legislative or regulatory actions, industry standards, technology advances, or contractual obligations, Contractor will work in good faith with City of Tukwila to promptly amend this Exhibit accordingly. TIS EXH—Data Protection and Info Security 02-2021 Page 10 of 10 61 OpenGov Contract Contract to be distributed separately at the April 28, 2025 Meeting Attachment 62 City of Tukwila, WA OpenGov Budgeting & Planning Executive Summary Tukwila Team, On behalf of the entire OpenGov team, thank you for the opportunity to collaborate with Tukwila as you chart a course toward a more modern, transparent, and fiscally resilient future. It has been a privilege to work alongside your leadership team —including Aaron, Tony, Joel, Adam, and Tami—who have demonstrated clear vision, pragmatism, and a deep commitment to public service. After several months of collaboration, demos, workshops, and discussions, it's clear that Tukwila is not simply purchasing new software. You are undertaking a long -overdue modernization of your most foundational citywide functions: budgeting and revenue management. And in doing so, you are positioning Tukwila to meet the demands of a growing community, rising public expectations, and evolving internal capacity challenges. A Pivotal Moment Tukwila's legacy systems—CentralSquare Finance Enterprise, Eden Payroll, and spreadsheet -based processes —are no longer sustainable. They may have been sufficient in a simpler era, but today they are creating real operational drag, reducing visibility, and draining valuable staff capacity. Manual reconciliation of tax payments, disconnected Excel files, labor-intensive budget roll -ups, and reactive compliance tracking are not just inefficient —they are barriers to strategic planning, revenue optimization, and transparent governance. The most recent budget cycle made this clear. Finance staff were consumed by repetitive, manual tasks that delayed reporting, caused rework, and ultimately prevented the team from engaging more meaningfully in strategic decision -making. The City's ability to respond to Council and public inquiries was limited by the structure of its data, not its people. Staff capacity, already stretched thin, could not be augmented due to a lack of systems that enable automation and self-service. The burden was clear —and it took a toll. Moreover, as Tukwila faces inevitable staffing transitions in the years ahead, succession planning has become a top concern. Much of the City's budget and revenue knowledge lives in the heads of a small group of staff or inside fragile Excel files. The risk of institutional knowledge loss is high. OpenGov's 63 centralized, auditable, and easy -to -train platform helps mitigate this risk by capturing knowledge in systems —not spreadsheets —and giving new staff a platform that is intuitive, reliable, and fully supported. Addressing the City's Strategic Priorities OpenGov was built for this exact moment —and this exact mission. Our integrated cloud platform is purpose-built for local government, and is designed to solve the challenges cities like Tukwila face in budgeting, workforce planning, performance tracking, tax collection, and community engagement. Build Long -Term Financial Sustainability • Replace disconnected Excel files with a modern, secure platform that scales with the city's needs. • Automate budget workflows, approvals, and revisions —freeing staff time for strategic initiatives. • Integrate daily with CentralSquare Finance Enterprise and support dual -code alignment (FE + BARS). • Forecast revenues and expenditures with accuracy and speed, enabling long-range planning. • Fully cost workforce planning scenarios (COLAs, step increases, vacancies, union proposals). • Future -proof labor planning even as the City prepares to replace its Payroll and ERP Systems in the future. Unlock $1M+ in Immediate Revenue and ROI • Transition B&O tax collection from paper to online, with full automation and compliance tracking. • Quantify, track, and collect more than $1M in missed revenue annually —without adding staff. • Automate delinquency notices, reconciliation, and audit trails. • Reduce time spent on reconciliation, error correction, and manual processing. • Provide businesses with a seamless, transparent portal —improving compliance and satisfaction. Strengthen Transparency and Community Engagement • Launch an interactive, web -based budget book with real-time data, embedded narratives, and visual reporting. • Align budget allocations with community priorities through Priority -Based Budgeting and performance metrics. • Equip Council with dashboards and reports that drive informed policymaking. • Provide the public with easy access to meaningful, digestible data on how funds are used and what outcomes are delivered. • Rebuild trust and engagement around budget decisions and city performance. Create Capacity and Prepare for the Future • Eliminate the need for manual data collection and Excel -based roll -ups. • Free up 100-150 hours per budget cycle, redeploying staff toward strategic and value-added tasks. • Ensure continuity of knowledge with centralized systems, documentation, and support. 64 • Reduce burnout and enhance retention by removing administrative burdens from critical staff. w Provide a clear, scalable path for orooa-Lraining,onboarding, and auooaaaiVn planning. Op9nGov was selected bvmany of the leading jurisdictions throughout the state and country, including Duvall, WA; Mount Vernon, WA; Amacmrtem,\&A; Puyallup, WA; Federal Way, WA; Stevens County, WA; Chelan County, WA; and Lewis County, WA. PROVIDED SOLUTIONS Temr-Rmund'Full-Featured Public Sector Budgeting Maximize end -to -end effectiveness for your entire year-round budget and planning cycle, from near -term forecast adjustments to long-range capital initiatives to continuous budget management and strategic initiative engagement. • Collaborative, Automated Operating Budgets: Liberate your budgeting from disparate spreadsheets with a unified process that seamlessly ties spending to desired outcomes w Workforce Planning: Simplify planning for your most complex and important asset -- your people — with scenario analysis, advanced calculations, and integrated budget requests • Capital Planning: Forecast long-term capital expenditures, manage proposals and evaluations, track performance, and easily keep stakeholders from various audiences informed of progress • Online Budget Book: Publish efully interactive, (3FOA award -winning online budget book that makes future publications vastly more repeatable • Workflow Management: Modernize your internal workflows to reduce your administrative burden w Reporting & Transparency: Empower decision makers and the public with the right data in the right format to make data driven decisions and increase public trust. Tip, 0~ ~dg, Ommie~ $43,594,202 �� �� $13.558,738 $48,29Z01e User Home Screen includes At-s-GlonceBudget Overview and Tasks 65 Precisely calculate fully -burdened personnel costs through vvorkforce • lannin ^ IT SUPPORT SPECIALIST.INT^ 11.:.1•:: $118,176 ,,, ............................................................... r.:•:::::. wa„ sf,,,,,,, :•:•:...i, .222 421 11,2, , September 06. 2010 ( / (56 $ 32 .0.1 ,250 D.stdi ErnMe,sistmcc V.30 Get at -a -glance insights on allocations and the fully -burdened costs of any active or vacant position Forecast long-term expenditures for ca Iannin initiatives. Current Year 0.0.0 0 16, 4,0500.42,0000200, Easy -to -navigate and easy -to -create reports give you insights and drill -downs on your long-term plans Simplify online budget publications. 66 HOME DASHBOARD MVP PURPOSE PRIORITIES FEEDBACK SUBSCRIBE tommotom rattWAtinfliffili11 7 iltiettftSCS. ktrflginns4", Our community celebrates its bicentennial in 2024, and the City Commission is proudly setting the groundwork that will guide the City of Tallahassee's operations to its 200th anniversary. 1 his pion - the Of. overttrotti. clan of this ...uric in our ortganicatrot. hictory - P. us wt.. our wsion A ArAalive capila, city (NA sEopolls strAngcarrumAily vaiff, vibmnt noighborhoodA :anovatwo oconomic: and educational hub sendny ;bye's°. and Aasmnate,,,,,,,, Aroma:, our natura,sou:c:es Anci presArv, cl.racter. Meow,. our curt.... key to achieving gon, e.tliched in the Strategic Plan, Th. tool anows the Say to track our progrenu on key Tell Your Story of your Strategic Plan and Budget Make better decisions with centralized dashboards for everyone. 0 Dashboards City Manager Dashboard 0_, 'lir rib Special Events Permitting Mayor's Dashboard Create Hew Elasitmani Program - Animal Shelter Opera... PLC Dashboard COVID-19 Tracking &Scenario ... Controller Dashboard (ACS) Economic Vitality Compm. Councilmember Mialchay Public Safety Dashboard Public Safety Finance Director's Dashboard ' ' • — — ii ' MD, DEM. _Mb fcmci Dom User Home Screen Includes At -a -Glance Budget Overview and Tasks Streamline your internal processes 67 N ~ � .� � a � ~» Sample Workflow mfmCapital Proposal with Evaluation Details Real Results f rorn OpenGov Budgeting Customers: w Duvall, WA increased their efficiency and streamlined their financial processes - Video w Santa Cruz County, CAsaved over 5O0hours during the budgeting process and won oGFOA Distinguished Budget Award -Video w Vestavia Hills, AL produced their Budget Book 3x faster and had more accurate workforce planning -Case Study w Alameda, CA cut budget development by 50% and received a GFOA Distinguished Budget Award - Case Study w Dallas County has modernized its internal budget processes to deliver outcomes for the county - Video w City ofTorrington, CT w City ofPrescott, AZ w Township ofCheltenham, Montgomery County, R4 � City ofRancho Cordova, CA � County OfTuolumne, CA w City ofFoster City, CA w City nfBeaumont, TX w County OfLewis and Clark, K4T w County ofWalton, FL u Key Consi4erations for Selecting TukVVUm's Long -Term Itud eting,�,,Fina0cial Solution M anagemnent As the City of Tukwila approaches a critical modernization of its budgeting and financial infrastructure, the 68 importance of selecting a solution that delivers long-term value, operational sustainability, and measurable outcomes cannot be overstated. This decision is not simply about replacing legacy tools —it's about setting the City up for future success, resilience, and transparency. The following considerations are essential as the Council evaluates this strategic investment: Avoi o _Cost, Low -Value Software Soluti ns Budgeting and financial management require more than surface -level functionality. Solutions marketed as "lightweight" or "cost-effective" often leave cities dependent on external spreadsheets, offer shallow reporting features, and struggle to scale with complexity. By contrast, OpenGov's Budgeting & Planning Suite was built for the public sector and delivers: • A centralized environment that replaces brittle Excel files and manual processes • Automated digital publishing of budget books and capital plans • No reliance on third -party plug -ins or hidden support fees The result: organizations that prioritize short-term savings often find themselves re-entering the market within a few years. Tukwila deserves a partner that delivers enduring value. Real-Ti e ata Sync with CentralSquare & Eden Budgeting and reporting must be grounded in data integrity. OpenGov offers automated nightly synchronization with CentralSquare Finance Enterprise and Tyler Eden payroll, ensuring: - Live updates to budget-to-actuals and transaction records Real-time data modeling during internal meetings and budget presentations Confidence in reporting accuracy for both internal stakeholders and Council. Other vendors may require manual exports or impose update lags —costing time, accuracy, and trust. Strengthen Capacity and Ensure Continuity of Service Tukwila's reliance on spreadsheet -driven processes creates serious risks —especially in the event of staff turnover. One of the clearest takeaways from the City's last budget cycle was the fragility of the current approach. OpenGov directly addresses succession planning and institutional knowledge transfer by providing: • Centralized, cloud -based data access • Configurable approval workflows and reporting templates 69 • Department -facing tools to reduce Finance's manual workload This ensures continuity and builds operational resilience regardless of staffing changes. Fully Integrate. Capital Planning, Perfo m ance Strategic oal lign ent The City's next financial system must support more than just budget development. OpenGov natively supports: • Six -year Capital Improvement Plans with phase tracking and funding source transparency • Department -level strategic initiatives tied to budget proposals • Performance dashboards aligned to program outcomes • Narrative -based justifications integrated into the public budget book All of this functionality is built into the OpenGov platform —no separate software, no extra modules. Trans arency, unity Enka a ent, an Pu lic Trust Today's residents expect modern digital access to public information. Static PDFs no longer suffice. OpenGov enables: ADA-compliant, web -based interactive budget books Real-time budget visualizations, outcomes tracking, and fund -level insights Open Town Hall functionality for public surveys, simulations, and input gathering This is more than just good government —it is critical to sustaining civic trust. Rob. st, Forward -Looking Functionality fi r Long -Teri Financial Sustains illity Tukwila's investment must support both the current biennial budget structure and future scenario planning. OpenGov delivers: • Ten-year forecasting for workforce planning. • Side -by -side scenario modeling for COLAs, new hires, and union negotiations. • Visualization of historicals, non -financial data, and GIS-based capital tracking. • A native report builder that auto -generates reports for Council and the public. • Built-in publishing tools that meet GFOA standards and ADA compliance. These capabilities are not theoretical—OpenGov has implemented them in hundreds of jurisdictions. 70 Built for Washington Municipalities OpenGov is the selected partner for Duvall, Mount Vernon, Anacortes, Puyallup, Federal Way, Stevens County, Chelan County, and others. Our team understands Washington's requirements, the nuances of C8ntra|8qU@re,and the State'Sbudgeting and compliance environment. Our staff includes former City Managers, Finance Directors, and Budget Officers who have been Onyour side of the table. We don't just understand the technology —we understand the mission. WhyThis Matters Now Tukwila is at a strategic crossroads. The City's current systems lack the depth, resilience, and transparency needed tosupport modern governance. This isabout: w Expanding staff capacity through automation w Delivering better, faster data to Council and residents w Recovering $lK4+inuncollected taxes with improved enforcement w Supporting program -based budgeting and performance w Ensuring financial eustainabi|ityand data integrity OperGovis the only solution onthe market that delivers this complete package —with fixed pricing, proven implementation timelines, and a commitment to long-term partnership. Let's equip Tukwila for the decade ahead. Competitive Analysis: City of Watsonville, CA RFP OponGnvvvoS recently evaluated by the City of Watsonville, CA, through a competitive RFP process. The City sought a new solution to replace their manual, Excel -based budget process and address core user needs that were not supported by their Tyler Munis budget module. Despite OpenG0vhaving mhigher priced proposal than two other software vendors, the City ultimately decided on moving forward with OpenGovdue tothe following reasons (vvo are happy to provide you with a copy of the Council Resolution for more details, if interested): TOponGov is liked by their customers who appreciate their customer service and the continuous improvements totheir pr0duot." OpenGov will "allow the Finance Department to move the Capital Improvement Plan (CIP) into the budget systenn." "OpenGov will automate the creation of the budget book and move the budget book from apublished document toononline easily navigable doournent." 71 * "OpenGov will save significant finance and communications staff time along with giving departments much more control and transparency around their budget submissions." * "In addition to improving our existing internal processes OpenGov offers a number of features that will enhance our current process particularly around external communication with the public." Competitive Analysis: City of Oxnard, CA RFP OpenGov was recently evaluated by the City of Oxnard, CA, through a competitive RFP process. The City also sought a new solution to replace their manual, Excel -based budget process and address core user needs that were not supported by their Tyler Munis budget module. Despite OpenGov having a higher priced proposal than two other software vendors, the City ultimately decided on moving forward with OpenGov due to the following reasons (we are happy to provide you with a copy of the Council Resolution for more details, if interested): * City staff received exceptional references from other California cities that use the combination of Tyler Munis and OpenGov, who have leveraged OpenGov's ability to interface with Tyler Munis. Other cities using OpenGov, integrated with Tyler Munis include Hayward, Santa Barbara, Pasadena, Yorba Linda and Victorville. * OpenGov offers full -featured, cloud -based, budgeting software designed for public agencies. As an integrated budgeting and planning solution, it will allow staff to develop their department budgets in a more streamlined, systematic, and repeatable way. OpenGov's pricing model consists of both a fixed fee annual subscription for the software and a one-time cost for the professional services component. Our Professional Services cost includes all phases of implementation: Initiation, Best Practices, Configuration, Validation, Deployment, and Project Completion. OpenGov offers an unlimited user, unlimited usage pricing model, meaning customers are not limi ted to the number of users, logins, dashboards, reports or usage of data. Proposal: OpenGov Budgeting & Performance and Tax Collection & Revenue Management (Full Suite) 72 Budgeting &P1amnimg Smite Unlimited Users Business Tax and Revenue Management Suite Unlimited Users Reporting & Transparency Unlimited Users OpenGov University (Unlimited Users) Operating Budget Workforce Budget Capital Budgeting Capital Project P8Qes Operating Budget Book Capital Budget Book Nightly Integration - Tyler K4unin Business S/Operational Tax Miscellaneous Revenue Management Reporting Department Reporting Strategic Plan Dashboards, Performance, KP|'s Stories Community Feedback Surveys Transparency Portal Strategic Initiatives Initiation, Best Practices, Configuration, Validation, Deployment, and Project Completion Ofthe above SO|UtiOnS (this inC|Ud8S a review and functional build ofyour Chart of Accounts into OpenGov). Aooeaa to phone and chat support, designated Customer Su000uu Manager, and increased response times for support cases. OGU On -Demand: Video -based online learning courses OGULive: o combination of virtual training sessions and in -person 73 ~ Customer Success Manager training events* Resource Center: a written article knowledgebase Dedicated human resource to support your journey as an OpenGov user with training, adoption, best practices, and general assistance throughout the OpenGov partnership Year 2 Year 3 Included $150,675 $158,208 *Estimate - Final Proposal Requires Scoping w/ OpenGov Professional Services Team **Additional 7.5% Discount Available if Multiple Years Paid Up -Front As Tukwila takes the next step toward modernizing its financial operations, OpenGov stands uniquely positioned to deliver on the City's most pressing strategic priorities —including fiscal sustainability, transparency, and long-term operational resilience. After months of collaboration with the City's Finance, IT, and executive leadership teams, the following key differentiators explain why OpenGov is the right long-term partner. Comprehensive, End -to --End Budgeting--Purpose-Built for Government OpenGov is the only vendor offering a truly unified public sector budgeting solution that covers every stage of Tukwila's annual and biennial planning process in one system: • Operating Budgeting: Collaborative, department -led budget development with controlled workflows and real-time tracking. 74 • Workforce Budgeting: Powerful salary and benefit modeling with union/step increases, COLA scenarios, and 10-year projections. • Capital Planning: Project evaluation, proposal scoring, funding source tracking, and auto -generated 6-Year CIP Books. • Strategic Budgeting: Department requests can be directly tied to citywide initiatives, enabling alignment with Priority -Based Budgeting. • Public Transparency: Fully interactive, GFOA-compliant online budget books —no third -party publishing tools needed. • Real -Time Data Sync: Automated nightly integration with CentralSquare FE and structured imports from Eden payroll ensure financial data stays up to date. Unlike alternatives that rely on third -party plug -ins, external report writers, or disconnected systems, OpenGov eliminates manual uploads and offers seamless, real-time insight —all within a single platform. by penGov for Tax & evenue: Intelligent, Auto ate & an ent Tukwila has an estimated $1M/year in uncollected B&O revenue due to limited visibility, lack of automation, and a paper -based returns process. OpenGov's Tax & Revenue platform changes that immediately: • Modern Taxpayer Portal: Online filings, payments, historical lookup, and multi-user access for third -party preparers. • Automated Reconciliation: Daily payment and return tracking mapped to the GL with no need for manual line -by-line Excel reconciliation. • Custom Tax Logic: Supports Tukwila's tiered 9-10-10 penalties, proposed square footage tax, and multiple filing frequencies per account. • Integrated Case Management: Track audits, assign investigators, and manage compliance workflows with full visibility. • Proactive Enforcement Auto -generated missing/delinquent notices, account indicators, and configurable templates ensure timely collections. With OpenGov, Tukwila can replace outdated processes with a professional -grade system that improves compliance, increases revenue, and restores taxpayer confidence. So ving for Capacity Challenges n Succession isk OpenGov reduces reliance on institutional knowledge and eliminates fragile Excel -based workflows. With structured templates, role -based access, and full audit trails, the City can: • Build capacity across departments by decentralizing input and empowering users. 75 � Protect against knowledge loss when key staff depart Urretire. Reduce the volume of one-off support requests into Finance by 30-50%. This ayatonn aUovva the City to aoo|e effectively and build operational resilience regardless of future staffing changes. Transparency an* Co LA nityEOgagernent--� odeyOize OpenGov goes far beyond static PDFs. The platform includes: w ADA-compliant digital budget books that integrate with performance data and charts. w Resident engagement tools including survey modules and participatory budgeting (]pen llxmn H@U). w Council and executive dashboards with on -demand filters, snapshots, and multi -year projections. Tuhvv|m's Council, executive team, and residents will all benefit from the ability to aoo vvharo dollars go —and what outcomes they generate. Lessons fro Mn he Las � W QdgetCycle The City's most recent budget process highlighted the inefficiencies of Excel -based budgeting: w K4onue| version control and formula errors dn|evnd mnak/aia and collaboration. w Limited ability tomodel workforce costs bvprogram ordepartment. w Budget updates during Council presentations could not bemodeled live. OpenGov eliminates these limitations by providing structured, real-time, cloud -based collaboration from the first draft to final adoption. uiget|ng Revenue The financial impact of adopting OpenGov is both immediate and ongoing: w $HM+ in Recaptured Revenue**: Improved tax administration will generate new General Fund revenue. w 100-150+ Hours Saved Per Budget Cycle**: Staff can focus on strategic planning, not version tracking. w Increased Compliance": Automated reminders and digital filing reduce delinquency rates. w Council 8'Resident Conhdence**:Public-facing transparency strengthens trust and accountability. 76 Over a 3-year window, these returns significantly outweigh system costs and reduce pressure on city staffing. Co itted to Tukwila's Long -Ter Fisc Sustainalbiliity OpenGov supports multi -year forecasting, 6-year CIP development, and strategic initiative tracking —all key elements of a sustainable financial future. With automated reporting, scenario modeling, and personnel cost forecasting, the City can: • Align budget decisions with long-term priorities. • Prepare for labor negotiations and new program needs. • Surface risks and opportunities early —before budget adoption. Truste y Govern ents Across shington OpenGov is already the budgeting and transparency partner of choice for: Duvall, WA Mount Vernon, WA Anacortes, WA Puyallup, WA Federal Way, WA Chelan County, WA Stevens County, WA These agencies trust OpenGov for our product expertise, regional knowledge, and local government DNA. Conclusion Tukwila deserves a system built for the work of local government —not just another software vendor. OpenGov offers an integrated platform to unify budgeting and revenue management, elevate public trust, and ensure the City's financial sustainability for years to come. Our team of former public finance leaders, technologists, and customer success experts is ready to support Tukwila through every step of implementation, adoption, and continuous improvement. Let's build the next chapter of Tukwila's future —together. 77 78 Thomas McLeod, Mayor Finance Department — Aaron BeMiller, Director TO: Finance & Governance Committee CC: Mayor McLeod FROM: Aaron Be Miller, Finance Director By: Tony Cullerton, Deputy Finance Director DATE: April 28, 2025 SUBJECT: 2025 First Quarter General Fund Financial Report SUMMARY The City of Tukwila's 2025 First Quarter (Q1) General Fund Financial Report provides a comprehensive overview of the city's fiscal performance, detailing key revenue drivers, expenditure patterns, and budget variances. This report highlights the factors influencing financial outcomes, such as rising sales tax revenue and shifts in departmental spending, while offering insights into strategic adjustments made to balance growth and sustainability. By examining these financial dynamics, the report aims to inform stakeholders about the city's financial health and guide future budgeting decisions. Discussion In Q1 2025, General Fund revenues came in under budget by $1.1 million (5.6%) due to the timing of Property Tax collections, which are primarily received in April, while expenditures remained well - managed, trending 0.2% under budget. Taxes made up 69% of total revenues, with Sales Tax showing slight growth of 6.4% over the prior year, and Utility Tax up 7.4%. Property Tax reported early payments resulting in an increase of $323,029, although the majority of collections will be reflected in April and May. Other revenue highlights include large gains in Building Permits, which exceeded budget by $273,850, and Admission Tax, which increased 56% year -over -year. Declines in Grant and Intergovernmental Revenues were attributed to the expiration of Federal ARPA funding and the absence of Basic Life Services training income. On the expenditure side, all departments stayed within budget, with variations linked to timing issues, annual payments, and changes in contractual obligations, such as the termination of the Fire contract with the RFA. Total Q1 expenditures concluded at 24.9% of the annual budget. Recommendations: • Discussion only Attachments • 2025 First Quarter GF Financial Report 79 City of Tukwila Quarter 1 Financial Report January — March 2025 General Fund Overview General Fund Revenues Expenditures Net 2025 Beginning Fund Balance 2025 Projected Ending Fund Balance 2025 Budget 76,087,350 74,931,244 1,156,106 2025 Actual % of Budget $ Diff 17,955,453 23.6% ($1,066,384) 18,691,567 24.9% (412) (736,113) 24,121,326 23,385,213 General Fund - Required Ending Fund Balance Calculation 2025 Ongoing Revenues 18% of Ongoing Revenues 2025 GF Budgeted Unassigned FB Amount Over/(Under) 15,561,646 2,801,096 23,385,213 $20,584,116 Contingency Fund - Required Ending Fund Balance Calculation 10% of 2025 Ongonig Revenues Budgeted Contingency Fund Amount Over/(Under) 1,556,165 7,154,961 $5,598,796 2 81 2025 Quarter 1 (Q1) Financial Overview For Q1 2025, General Fund revenues are trailing the 2025 expectations by $1A million (5.6%), due to the timing of Property Tax collections, which are received in April. Q1 expenditures are on track, trending at 0.2% under budget. ThOUS@OdS 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2025 01 76,087 General Fund Revenues & Expenditures Budget vs Actual 17,955 Revenues 74,931 • 2025 Budget • 2025 Actual 18,692 Expenditures 3 82 Revenue Analysis Taxes remain the primary revenue classification, comprising 69% of Q1 revenue. The remaining 31% consists of other revenue classifications, which are relatively evenly distributed. 7A% 2025O1 ReV2OUeS n Licenses and Permits a Charges for Services m Non -Operating Income a|mcrgvvcmment°| Revenue Classification Tax Licenses and Permits Intergovernmental Charges for Services Non'OperatinQ|nconne Total Amount % 121386,918 69.0% 1,746,581 9.7% 1,279,584 7.196 1,038'393 5.8% 1,504,058 8.496 171955,453 100'0% 4 83 Taking acloser look oLtaxes, Sales Tax leads the category.Property Tax issubstantially collected twice a year in April and October, We will see an increase in the Property Tax received in May, after the April payments are recorded. Taxes Amount % Sa|esTaxes'Retai| $6,078625 54% Property Tax $1,075,573 996 Utility Taxes $1,340344 12Y6 Gambling & Excise Taxes $421,492 4% |nterfundUtility Taxes $1,313,835 12% Business & Occupation Tax $591,219 596 Admission Taxes $273,903 296 Use Taxes $246,712 2% Tota|Taues $11,341,701 188% 84 General Fund Overview - Revenues by Category Below are General Fund revenues by category. Variances from the prior quarter that are greater than 10% AND $250k are further explained in the report. Year -to -Date as of March 31, 2025 BUDGET ACTUAL COMPARISON OF RESULTS SUMMARY BY REVENUE TYPE 2023 2024 2025 YTD Budget vs Actuals OVERAUNDER) % Change 2025 Budget Received $ 2024/2025 % 2024/2025 Property Tax 11,999,227 677,329 752,544 1,075,573 (1,924,234) 9% 323,029 42.9% Sales Taxes -Retail 23,447,886 5,642,125 5,700,244 6,078,625 216,653 26% 378,381 6.6% Use Taxes 999,100 278,367 242,205 246,712 (3,063) 25% 4,507 1.9% Admission Taxes 859,235 213,217 176,122 273,902 59,094 32% 97,781 55.5% Utility Taxes 4,493,702 1,208,533 1,267,384 1,361,361 237,935 30% 93,976 7.4% Interfund Utility Taxes 3,167,729 1,178,350 1,221,373 1,313,835 521,902 41% 92,462 7.6% Gambling & Excise Taxes 4,609,500 1,306,159 1,060,091 1,317,791 165,416 29% 257,700 24.3% Business & Occupation Tax 2,400,000 0 0 719,121 119,121 30% 719,121 0.0% Total Tax Revenue 51,976,379 10,504,081 10,419,962 12,386,918 (607,177) 24% $1,966,956 18.9% Business Licenses 3,445,500 768,245 674,595 593,444 (267,931) 17% (81,151) -12.0% Rental Housing permits 44,700 36,012 37,110 47,329 36,154 106% 10,219 27.5% Building Permits 1,940,500 540,508 405,062 758,975 273,850 39% 353,913 87.4% Franchise Fees 651,372 123,683 131,962 346,752 183,909 53% 214,790 162.8% Total Licenses and Permits 6,082,072 1,468,448 1,248,729 1,746,501 225,983 29% $497,771 39.9% Sales Tax Mitigation Pyments 406,700 176,519 141,216 112,972 11,297 28% (28,243) -20.0% SCL Agreement 2,687,700 737,591 805,135 885,416 213,491 33% 80,282 10.0% Grant Revenues 877,372 212,243 1,275,786 157,667 (61,676) 18% (1,118,119) -87.6% State Entitlements 690,330 106,053 154,524 142,161 (30,422) 21% (12,363) -8.0% Intergovernmental Revenue 0 6,378 737,381 (18,633) (18,633) 0% (756,014) -102.5% Total Intergovernmental Revenue 4,662,102 1,238,784 3,114,041 1,279,584 114,058 27% ($1,834,458) -58.9% General Government Revenue 9,620 6,797 2,981 7,562 5,157 79% 4,582 153.7% Security revenue 1,139,456 163,730 279,271 317,223 32,359 28% 37,952 13.6% Transportation Revenue 20,000 288 0 0 (5,000) 0% 0 0.0% Plan Check and Review Fees 662,000 249,756 158,748 326,535 161,035 49% 167,787 105.7% Culture and Recreation Fees 781,045 37,184 65,958 79,845 (115,416) 10% 13,888 21.1% Fines and Penalties 404,505 87,967 78,791 250,985 149,859 62% 172,194 218.5% OTHER INCOME 190,075 137,246 193,165 56,242 8,723 30% (136,923) -70.9% Total Charges for Services 3,206,701 682,969 778,913 1,038,393 78,135 32% $259,480 33.3% TOTAL OPERATING REVENUE 65,927,254 13,894,281 15,561,646 16,451,395 (49,475,859) 25% $889,750 5.7% Indirect Cost Allocation 3,111,694 705,603 740,886 777,922 (2) 25% 37,036 5.0% Investment Earnings 470,000 67,107 66,806 97,706 (19,794) 21% 30,900 46.3% Rent & Concessions 383,783 35,493 293,816 298,724 202,778 78% 4,909 1.7% Transfers In 1,494,619 0 176,392 329,706 (43,949) 22% 153,314 86.9% Sale of Capital Assets 4,700,000 0 0 0 (1,175,000) 0% 0% 0.0% Total Non Operating Revenue 10,160,096 808,203 1,277,899 1,504,058 (1,035,966) 15% $226,159 17.7% TOTAL REVENUE 76,087,350 14,702,484 16,839,545 17,955,453 (1,066,384) 24% $1,115,908 6.6% % of Year 25% 6 85 Significant Changes Property Tax — First half payment is made in April. The increase of $323,029 is a representation of early first % payments. Gambling Tax — The Increase is due to the collection of past due gambling tax revenue. Business & Occupation Tax — Business & Occupation Tax: The City implemented the B&O Tax on January 1, 2024. Q1 2025 revenues, remitted in April, are not reflected in this report. Building Permits are a volatile revenue stream that is difficult to predict. At 25% of the year, the City has received 39% of the anticipated budget amount. Grant Revenues are down compared to the prior year is primarily due to the expiration of Federal ARPA grant funding as of December 31, 2024. Intergovernmental Revenue reported A notable decline is due to the absence of Basic Life Services (BLS) training funding in 2025, which contributed over $700,000 in revenue in 2024. Additionally, approximately $22,000 in invoiced revenue was reversed. 86 General Fund Revenue Charts Property Tax 2023 Actual 2024 Actual 2025 Actual 2025 vs 2024 $ Diff % Diff 677,329 752,544 1,075,573 323,029 42.9% Property Tax is primarily collected twice a year. This revenue will increase in April & May once payments are recorded. 01 reflects early payments totaling $323,029. The 42% year -over -year increase is due to these early remittances. 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 677,329 2023 Actual Property Tax Jan - ar 2023 - 2025 1,075,573 752,544 2024 Actual 2025 Actual 8 87 Sales Tax 2023 Actual 2024 Actual 2025 Actual 2025 vs 2024 $ Diff % Diff 5,920,492 5,942,449 6,325,337 382,888 6.4% Sales Tax leads all tax categories and has increased 6.4% compared to the same period in 2024. The growth is attributed to heightened economic activity. 6,400,000 6,300,000 6,200,000 6,100,000 6,000,000 5,900,000 5,800,000 5,700,000 5,920,492 2023 Actual Sales Tax Jan - Mar 2023 - 2025 5,942,449 2024 Actual 6,325,337 2025 Actual 9 88 Utility Tax 2023 Actual 2024 Actual 2025 Actual 2025 vs 2024 $ Diff % Diff 1,208,533 1,267,384 1,361,361 93,976 7.4% Utility Tax revenue rose by 7.4% over the prior year. Notable increases were observed in Gas, while Solid Waste reported a decrease due to an unprocessed March payment at the time of reporting. Utility 2023 2024 2025 $ Change % Change Cable $58,211.04 $67,885.92 $62,544.56 (5,341) -7.9% Electric $480,434.58 $518,081.02 $552,524.24 34,443 6.6% Gas $288,501.03 $256,465.15 $328,508.68 72,044 28.1% Telecommunications $193,172.03 $167,184.57 $184,202.41 17,018 10.2% Solid Waste General $188,214.51 $257,767.53 $233,580.76 (24,187) -9.4% Total 1,208,533 1,267,384 1,361,361 93,976 7.41% 1,400,000 1,350,000 1,300,000 1,250,000 1,200,000 1,150,000 1,100,000 1,208,533 2023 Actual 1,267 384 2024 Actual 61,361 2025 Actual 10 89 Interfund Utility Tax 2023 Actual 2024 Actual 2025 Actual 2025 vs 2024 $ Diff % Diff 1,178,350 1,221,373 1,313,835 92,462 7.6% lnterfund Utility Tax revenue increased by 7.6% year -over -year, reflecting a $92,462 year -over -year rise. This tax represents the City's utility usage. 1,350,000 1,300,000 1,250,000 1,200,000 1,150,000 1,100, 000 1,178,350 2023 Actual un Jan- a -2 y T 2024 Actual 1,313, 35 2025 Actual 11 90 Gambling Tax 2023 Actual 2024 Actual 2025 Actual 2025 vs 2024 $ Diff % Diff 1,306,159 1,060,091 1,317,791 257,700 24.3% Gambling Tax increase is attributed to the collection of past due revenues. 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 1,306,159 2023 Actual Gambling Tax Jan - Mar 2023 - 2025 1,060,091 2024 Actual 2025 Actual 12 91 Admission Tax 2023 Actual 2024 Actual 2025 Actual 2025 vs 2024 $ Diff % Diff 213,217 176,122 273,902 97,781 55.5% Admission Tax revenue saw a significant 56% increase compared to the prior year, exceeding budget by $59,094, largely due to heightened economic activity. 300,000 250,000 200,000 150,000 100,000 50,000 0 213,217 2023 Actual Admission Tax Jan - Mar 2023 - 2025 176,122 2024 Actual 273,902 2025 Actual 13 92 Business Licenses 2023 Actual 2024 Actual 2025 Actual 2025 vs 2024 $ Diff % Diff 768,245 674,595 593,444 (81,151) -12.0% Business Licenses reported a decline in revenue and is linked to reduced employee counts reported by businesses. 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 768,245 2023 Actual siri ss Liceps,s 674,595 2024 Actual 593,444 2025 Actual 14 93 Building Permits 2023 Actual 2024 Actual 2025 Actual 2025 vs 2024 $ Diff % Diff 540,508 405,062 758,975 353,913 87.4% Building Permits, a volatile revenue source, are challenging to forecast. At 25% into the year, the City has received 39% of the anticipated budget, representing an 87.4% increase year -over -year. 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 2023 Actual IS J r 2024 Actual 2025 Actual 15 94 General Fund Overview—Espemditures by Department General Fund expenditures ended the quarter0.2% under budget. All General Fund departments are in good shape at the end of Q1. DEPARTMENT auooET ACTUAL Actual Year -Over -Year 2025 Budget 2025 vro 2023 2024 2025 Budget vs Actual <ovEnyumosx m Expended $ Change mChange anz«/aoas City Council 4000e3 100,023 96,072 97'3e1 93'12* 6,897 23.3% (4,264) '4.4m Mayor's Office 9,748218 2,437,054 1'774,748 1'942'520 2'186,489 250,565 22.4% 243'970 12.e% Finance Department 4,343'230 1'085'808 1'067'540 1,605'401 1'630'839 (545,031) 37.5% 25,438 1.6% necDept/ parkoMai nt 6'/68'451 1'6e2'113 1'207'525 1'399^744 1'445'419 246'6e3 21.4m 45'675 aam cnmmunitvory 5'732.921 1'433'230 1'022'598 1'141^/e0 1'261'46/ 171'7*4 22om 120'277 10.5% Municipal Court 2'32e'525 582'3e1 401'31e 488'704 saa'zoz 4e199 zzym 44,478 9.1m Police Department 28'411'330 7'102'833 5'485'673 6'377'623 7'453's80 (350,747) 26.2% 1,175,957 18J% Fire Department z'ago'zsz 349'548 4'003'96e 4'364'426 214'788 134,760 zsx% '95.1% pvvDept/ Street xxaint 9'738'964 2'434'741 2'666'068 s'naz'yss 2'111'807 322'934 21./% (920,131) 'so.s% Subtotal 68.870'925 17'217'731 17,725'510 20,348,937 16.930,697 287'034 a«.a% 'z*.u% Non Departmental 6'060'319 1'515'080 1'508'158 1'207^487 1'760'870 245,790 29.1% 553,383� 45.8% Total Expenditures 74,e31,244 18,732,811 19,233,668 21,556,424 18,691,567 532,824 24.9m (2,864,857) -13.3m mofYear asom * No departments reported exceeding their budgets inQ12O25.The increase over budget for Finance and Police reflects annual insurance payments. |fthe insurance payment was annualized, both departments would be reflected as under budget. * Police: Additional costs are associated with Fleet Dispatch Services and SCORE Jail. � Fire: A significant decline is due to the termination of the City's contract with the RFA as of * Street Maintenance: Reduced expendituresinanticipation nfanannual payment toKing County for Storm Water payment. * Non —Departmental: Increased costs are attributed to temporary housing for asylum seekers. 16 95 General Fund Overview - Expenditures by Category Year -to -Date as of March 31, 2025 BUDGET ACTUAL COMPARISON OF RESULTS % $ Change % Change 2025 2023 2024 Expended 2025 Annual 2024/2025 2024/2025 Salaries 30,318,363 5,768,477 6,472,190 7,308,638 24.1% 836,449 12.9% Extra Labor 1,176,493 85,173 117,528 142,978 12.2% 25,450 21.7% Overtime 1,648,520 395,104 427,596 433,416 26.3% 5,820 1.4% Holiday Pay 323,000 1,935 11,658 7,350 2.3% (4,308) (37.0%) FICA 2,570,059 471,530 530,681 589,658 22.9% 58,976 11.1% Pension-LEOFF 690,278 128,764 148,751 165,326 24.0% 16,575 11.1% Pension-PERS/PSERS 1,778,634 381,460 384,165 414,604 23.3% 30,439 7.9% Industrial Insurance 583,512 98,829 108,726 155,311 26.6% 46,584 42.8% Medical & Dental 7,184,514 1,342,590 1,480,011 1,611,353 22.4% 131,342 8.9% Uniform/Clothing 44,721 470 1,090 795 1.8% (295) (27.1%) Total Salaries & Benefits 46,318,094 8,674,331 9,682,397 10,829,429 23.4% 1,147,032 1.1.8% Supplies 697,785 67,836 100,592 137,268 19.7% 36,676 36.5% Repairs & Maint Supplies 506,030 57,508 197,591 77,317 15.3% (120,274) (60.9%) Small Tools 340,445 21,421 34,337 57,662 16.9% 23,324 67.9% Technology Supplies 86,454 2,764 18,874 3,973 4.6% (14,900) (78.9%) Fleet Supplies 9,500 1,004 3,113 632 6.7% (2,481) (79.7%) Total Supplies 1,640,214 150,533 354,507 276,853 16.9% (77,655) (21.9%) Professional Services 9,810,795 6,531,930 7,503,563 3,860,056 39.3% (3,643,508) (48.6%) Communications 584,227 71,665 115,665 142,622 24.4% 26,957 23.3% Professional Development 884,823 175,169 207,374 196,302 22.2% (11,072) (5.3%) Advertising 45,416 1,750 9,754 2,174 4.8% (7,581) (77.7%) Rentals 3,468,463 261,690 28,614 805,118 23.2% 776,503 2,713.7% Technology Services 1,320,046 355,823 400,141 568,893 43.1% 168,752 42.2% Utilities 2,571,089 1,351,216 1,424,436 245,592 9.6% (1,178,844) (82.8%) Repairs & Maint Services 2,597,922 300,744 455,140 573,070 22.1% 117,930 25.9% Miscellaneous 826,676 96,361 64,836 82,940 10.0% 18,105 27.9% Total Services 22,109,457 9,146,347 10,209,524 6,476,766 29.3% (3,732,758) (36.6%) Machinery & Equipment 200,000 0 176,392 920 0.5% (175,472) (99.5%) Total Capital Outlay 200,000 0 176,392 920 0.5% (175,472) (99.5%) Transfers Out 4,663,479 1,262,457 1,133,603 1,107,599 23.8% (26,004) (2.3%) Total Non Operating Expens 4,663,479 1,262,457 1,133,603 1,107,599 23.8% (26,004) (2.3%) Total Expenditures 74,931,244 19,233,668 21,556,424 18,691,567 24.9% (2,864,857) (13.3%) 25.0% 17 96 Salaries: Higher salary expenditurescompared tothe prior year are due toretroactive labor negotiation payments made inAugust 2024. Professional Services: Lower expenditures correspond to the termination of the Fine contract as of December 31'2O24. Rentals: Increased costs are related tufleet expenses. Utilities donot reflect annual Surface Water payment to KC. Q1 expenditures concluded at 24.9% of the annual budget, aligning with expectations. General Fund Category Table and Chart as% Expenditures by Category c nm% rm w Salaries & Benefits u Supplies a- Services w Capital Outlay q Transfers Out Salaries & Benefits Salaries /&Benefits 10829/429 58% Supplies 376,853 1% Services 6,476,766 35% Capital Outlay 920 U% Transfers Out 1,107599 6% Total Expenses 18,691,567 100.0% Services Professional Services 3,860,056 59.6% Communications 142,622 2.296 Professional Development 196,302 3.0% Advertising 2,174 0.0% Rentals 805,118 12.4% Technology Services 568893 8.8Y6 Utilities I45,592 3.896 Repairs& Manit Services 573,070 8.896 Miscellaneous 82,940 1.3% 18 97 Total Services 6,476,766 100.0% Professional Services Insurance -Liability 1,432,354 37.1% Dispatch 495,449 12.8% Insurance -Property 492,575 12.8% Contracted Services 423,326 11.0% Miscellaneous Prof Services 200,559 5.2% Jail Services 187,389 4.9% Consulting Services 154,224 4.0% Public Defense 101,100 2.6% Attorney Services 86,815 2.2% Security/Safety Svcs 53,628 1.4% Prosecution Services 43,350 1.1% V SWAT 40,000 1.0% Government Affairs 30,000 0.8% Revenue Backed Services 21,813 0.6% Translation & Interpretation 21,131 0.5% Human Services Contracts 20,761 0.5% Instructors 13,299 0.3% Special Matters (legal) 11,914 0.3% Inspection Services & Permits 11,255 0.3% Contracted Towing Services 10,379 0.3% ProTem Judges 4,160 0.1% Hearing Examiners 1,275 0.0% Employee screening/testing 1,130 0.0% Employee Assistance Prg EAP 1,104 0.0% Recruitment 615 0.0% Performers/Entertainment Svcs 450 0.0% Grand Total 3,860,056 100% 98 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Marty Wine, City Administrator CC: Thomas McLeod DATE: April 22, 2025 SUBJECT: Budget Sustainability Project - Scope ISSUE Briefing only. The Administration is conducting a comprehensive review of city programs, revenues and costs in preparation for the 2027/2028 budget development called the Budget Sustainability Project. BACKGROUND The purpose of this presentation is to remind the Council of the steps taken to develop and balance the 2025/2026 budget, which included the use of one-time funds and measures that would last for one two-year budget cycle. In an effort to build a future General Fund biennial budget that is more sustainable over a longer term (6 years), and to acknowledge that fundamentally the city's costs grow at a rate that exceeds revenue growth, the Budget Sustainability Project is underway to achieve longer -term financial sustainability (in which regularly occurring expenditures exceed regularly occurring revenues). Five work groups are reviewing all the dimensions of the city budget to make recommendations to the Mayor (and ultimately, the City Council with the 27/28 budget) for changes to revenues and expenditures. Some of the recommendations will be included in a report to Council about the revenue changes requested in the 2025-26 budget proviso. Other changes could include immediate and efficiency changes that can be implemented now; potential changes to salary and benefits policies; ways to manage operating expenses that may achieve savings; and what is needed from the City's General Fund to maintain and improve capital facilities and utilities. DISCUSSION The Committee will receive a briefing and status report about the scope of the project, and committee members will be asked to provide ideas and contributions to what should be considered FINANCIAL IMPACT The results of this review and the Budget Sustainability Project will shape how the General Fund 2027/2028 Proposed Budget will be developed. RECOMMENDATION Information and discussion only. ATTACHMENTS PowerPoint 99 BUDGET SUSTAINABILITY PROJECT FINANCE AND GOVERNANCE COMMITTEE April 28, 2025 The City of opportunity, the community of choice. How We Built the 2025-26 Budget • Return some property tax capacity from RFA annexation • Meet established financial and reserve policies • Avoid major staffing changes or layoffs • Budget enhancements limited to available resources • Maintain '23-24 cuts to positions, services & supplies • No planned debt issuance 22 • No tax rate increases • Return Fleet fund management to replacement cost model • Defer GF transfers to capital for 2025/26 • Use one-time funds as needed to balance budget • Aim for sustainable budget model; review issues in 2025 • Trade-offs: service levels and new investment - N Recap of Commitments To Review in 2025 • Explore revenue opportunities/options (B&O, REET, other) • Update compensation policy (Res 1951) • Continued evaluation of Finance Enterprise system • Implement Financial Sustainability Committee recommendations: operational audits, continuous improvement, lean process • Consider operational changes and impacts of service changes • Revisit capital repair/replacement needs • Refresh Financial policies, Indirect Cost Allocation model • Other The Challenge • Like most local governments, Tukwila has a budget sustainability challenge: our normally occurring expenses outpace our normally occurring revenues. • Past actual annual revenues increase by an average of 2.7%, while expenses are forecast to increase by 3.6%. • Without using one-time revenues to cover operational expenses in 25/26, the City's General Fund would be out of balance by $3.6 & $5.4M respectively, and the forecasted gap in the General Fund continues to increase by roughly $1.0M annually • We balanced the 25/26 Budget by using one-time revenue to support on -going operations, a budget model that is not sustainable over more than just a few years. • While the City is legally required to adopt a balanced budget, we need either increased revenue, reduced expenses, or a combination of the two, or the financial standing of the City will continue to erode. cD Tukwila's 2025-2030 Forecast Expenditures in Excess of Revenues, Excluding Property Sales Total Revenue Expenditures in Excess of Revenues $90 0 • The first two years is the proposed budget 0 • Forward -looking to evaluate long-term sustainability $85 • Built on status quo oerations • Expenses or revenue changes in line with previous years' actuals and known chan $80 $75 $70 2026 2027 2029 2030 Tukwila's 2025-2023 Forecast Expenditures in Excess of Revenues — Includes Property Sales . Total Revenue m Expenditures in Excess of Revenues Financial Policies (Res. 2096) • One-time revenue for one-time • expenditures • 6-year expenditure & revenue forecasts; • revenues estimated conservatively • Revenues diversified and stable • General Fund unassigned balance to equal or exceed 18% • Contingency Fund reserve balance to equal or exceed 1O% of previous year GF revenue Surplus = One -Time annual Revenue Reserve of 10% of prior year one-time revenue Unrestricted Enterprise Fund balances equal or exceed 20% of prior year revenue GF support should not be relied upon for funding capital projects Utility fund expenditures fully supported by their own rates/fees Utility rates structured for adequate infrastructure development & replacement Rate increases: small, applied frequently, staggered to avoid burdensome increase Budget Sustainability Project Purpose Draft Mayor's proposed 2027-28 budget so that the City's General Fund regularly -occurring revenues annually exceed general fund expenditures for operations and capital maintenance for 2027 through 2032. Target range of cost savings or net new revenues is about $6M per year. • Identify key goals and principles • Include Council, community, and employee input • identified by the Mayor as the City's highest priority for 2025-26 OD Budget Sustainability Review- 5 Areas • Immediate Changes Efficiency Improvements Out of the Box • Revenue Options (Budget Proviso Work Group) 0 0 • Salary and Benefit Policies • Budget Sustainability Review- 5 Areas • Operating Expenses Capital & Utilities Maintenance & Improvement Expenditures Timeline • Most areas: recommendations to Mayor by end of 2025 to include in 2027-28 budget development o Immediate Changes/Efficiencies/Out of the Box Work Group - explore for 2025-26 and beyond • Revenues: Budget proviso work group will report in July • Include Council (work sessions), community, and employee input Next Steps • Council engagement • Community engagement • Revenue Proviso Presentation • Update on progress of Work Groups 12