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FIN 2017-04-18 COMPLETE AGENDA PACKET
City of Tukwila Finance Committee O Verna Seal, Chair O Kathy Hougardy O Thomas McLeod AGENDA TUESDAY, APRIL 18, 2017 — 5:30 PM HAZELNUT CONFERENCE ROOM (At east entrance of City Hall) Distribution: Recommended Action V. Seal Mayor Ekberg K. Hougardy D. Cline T. McLeod C. O'Flaherty D. Robertson L. Humphrey Item Recommended Action Page 1. PRESENTATION(S) 2. BUSINESS AGENDA a. 2017 -2018 Capital Funding Plan. a. Information only Pg.i Peggy McCarthy, Finance Director Duncan Brown, Public Financial Management (PFM), and Deanna Gregory, Pacifica Law Group. b. An ordinance relating to Tukwila Municipal Code Section b. Forward to 4/24 C.O.W. and Pg.29 3.32.040, "Unbudgeted Equipment or Fixed Asset Items." 5/1 Regular Mtg. Peggy McCarthy, Finance Director c. February 2017 monthly departmental budgets -to- actuals c. Information only. Pg.37 report. Peggy McCarthy, Finance Director d. Technology & Innovation Services Department quarterly d. Information only. Pg.41 report. Joseph Todd, Technology & Innovation Services Director 3. ANNOUNCEMENTS 4. MISCELLANEOUS Next Scheduled Meeting: Tuesday, May 2, 2017 SThe 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 f Tukwila Allan Ekberg, Mayor TO: Finance & Safety Committee CC: Mayor Ekberg FROM: Peggy McCarthy, Finance Director DATE: April 12'2017 SUBJECT: 2017-2018 Capital Funding Plan ISSUE Discuss the 2017- 2018 capital funding plan. BACKGROUND As documented in the 2017-2018 Biennial Budget and the 2017-2022 Capital Improvement Plan, limited tax general obligation (LTGO)bondissuancesonap|annedtohe|pfinmncethe42'mAveSond53rdAveS Residential Street projects and the Public Works shope, which are part of the Public Safety Plan. Additionally, the T|B Redevelopment three-year bond anticipation note matures on December 1, 2017. Should developer proceeds not be received to pay off this debt as originally p|anned, o refinancing or repayment from other sources may be considered. A summary of capital funding needs follows: DISCUSSION An $8.4 million bond sale to finance the City's portion of the reokdando| street projects is being considered for issuance this summer. The bid award for the 42ndAve S project is schedu|ed for May 2O17with construction beginning inJune 2O17. The bid award for the 53nd Ave S project issohedu|edfor8epbember with construction beginning in September. As the December 1, 2017 maturity date nears for the TIB Redevelopment bond anticipation note, options for payoff or refinancing will be discussed and an action plan determined. Fund Project Funding 2017 2018 TOTAL Funding Description Needed Budget Budget Source 1 Residential Streets, Fund 103 42nd Ave S July $4.6 million $1.8 million $6.4 million LTGO — million million million $8.4 LTGO 3 Total Residential Streets, Fund 103 I I million combined issue Land sale Urban Renewal, TIB bond $2.25 $2.25 proceeds or 4 Fund 302 anticipation December million million LTGO notes refinancing Public Safety Plan, Public $6.15 $23.3 $295 Fund 306 Shops million million million DISCUSSION An $8.4 million bond sale to finance the City's portion of the reokdando| street projects is being considered for issuance this summer. The bid award for the 42ndAve S project is schedu|ed for May 2O17with construction beginning inJune 2O17. The bid award for the 53nd Ave S project issohedu|edfor8epbember with construction beginning in September. As the December 1, 2017 maturity date nears for the TIB Redevelopment bond anticipation note, options for payoff or refinancing will be discussed and an action plan determined. INFORMATIONAL MEMO Page The Public Safety Plan timeline indicates that site selection for the Public Works shops will occur inJanuary 2018. The timing and other details for this bond issue will be determined later in 2017 or earlier in 2018. RECOMMENDATION For information only. ATTACHMENTS Budget and C|Ppages Public Safety Plan timeline Public Finance Management slides 2017 - 2018 Biennial Budget Revenue and Expenditure Summary Residential Streets Fund City of Tukwila, Washington 266 Actual Projected Budget Percent Change 2014 2016 2016 2016 2017 2018 2016.17 2017 -18 Operating Revenue Kff-W Cities $ 268,442 $ 277,052 $ 283,503 $ 273,078 $ 280,000 $ 285,000 2.53% 1.79% Investment Earnings 1,418 1,477 1,929 1,800 1,500 1,600 - 16.67% 8.67% Total Operating Revenue 289,860 278,530 285,432 274,878 00 2.41% 1.81% Capital Project Revenue Intergovernmental Revenue "281.500286,60D Federal Grants 189,894 217,343 159,331 838,950 - 14.89% 0.00% 227,618 51,034 149,638 1,432,000 00 - 37.15 °h 19.44% nd Pro - - - 4,400,000 00 27.27% - 50.00% Plan/DevelopmentContributions 38,242 2,850,000 00 - 33.26% - 33.07% Total Capital Project Revenue 417,512 306,619 308,969 9,520,950 9,116,000 5,148,000 -4.25% - 43.53% Transfers In 100,000 474,000 200,000 200,000 - - 0.00% 0.00% Total Revenue 787,372 1,059,148 794,401 9,995,828 9,397,600 6,434,600 -5.99% -42.17 Capital Projects Overhead (Salaries & Benefits) - 162 - - - 0.00% 0.00% Cascade Mew Safe Routes to School 282,883 127,961 928,000 0.00% 0.00% Thomdyke Safe Routes to School 405,508 820,699 - - 0.00% 0.00% 42nd Ave S Roadside Barriers 50,727 47,353 90,443 - 0.00% 0.00% 42nd Ave S Phase III 299,917 321,663 218,128 5,300,000 5,851,000 2,465,000 10.40% - 57.87% Residential Street Prioritization Study - 24,431 169,070 - - 0.00% 0.00% Cascade Mew SRTS Phase II 1,698 150,649 614,000 - 0.00% 0.00% 53rd Ave S 60,313 151,941 3,173,000 2,613,000 2,610,000 - 17.65% -0.11% Traffic Calming - 75,000 0.00% 0.00% Small Roadway Improvements - - - 350,000 - 350,000 0.00% 0.00% Total Capital Projects 1,039,035 1,404,280 780,231 9,751,000 9,353,000 5,426,000 - 4.08% •42.00% Beginning Fund Balance 1,415,955 1,164,292 919,161 56,842 833,331 877,831 1366.05% 5.34% Change in Fund Balance (251,663) (345,132) 14,170 244,828 44,500 9,600 •81.82% - 78.43% Fund Balance $ 1,164,292 $ 819,161 $ 833,331 $ 301,670 $ 877,831 $ 887,431 190.99% 1.09% 266 2017 - 2018 Biennial Budget Expenditure Detail - Other '96 f w�'�b Daht Sarvica C4 of Tukwila, Washington 263 0 Actual Projected Budget Account Number 2014 2015 2016 2016 2017 2018 200.00.591.580.71.14 2014 GO Bond Pr)'ncipal $ $ 141,000 $ 149,000 $ 878,333 $ 150,000 $ 153000 00 .00.591.581.71. �.:59�1.581 71 4 �LOC P�dn.ip. - 2 Z0-.000 200.00.591.950.71.15 2015 LTGO Bond Principal - 220,000 225,000 230,000 200.00.592.181.83.14 LOC InteresttCommitment Fee 18,118 33,825 40,000 40,000 200.00.592.580.83.14 2014 LTGO Bond Interest 108,404 111,919 110,175 107,775 200.00.592.950.83.15 2015 LTGO Bond Interest 102,107 172,576 165,975 159,225 208.00.591.280.71.00 2017 LTGO Bond Principal (PW Shops) - - - 92,000 208.00.592.280.8100 2017 LTGO Bond Interest (PW Shops) 400,000_ 209.00.591.950.71.00 2017 LTGO Bond Principal (42nd/53rd) 172,000 209.00.592.950.83.00 2017 LTGO Bond Interest (42nd/53rd) (1) 500,000 210.00.591.220.71.00 2003 LTGO Refunding Bond Principal 93,000 - 210.00.591.750.71.00 2003 LTGO Refunding Bond Principal 372,000 210.00,592.220.83.00 2003 LTGO Refunding Bond Interest 4,650 210.00.592.750.83.00 2003 LTGO Refunding Bond Interest 18,600 211,00.591.180.71.00 2008 LTGO Refunding Bond Principal 476,000 504,000 524,000 524,000 544,000 576,000 211.00.591.950.71.00 2008 LTGO Refunding Bond Principal 119,000 126,000 131,000 131,000 136,000 144,000 211.00.592.180,83.00 2008 LTGO Refunding Bond Interest 173,600 145,040 124,880 124,880 103,920 71,280 211.00.592.950.83.00 2008 LTGO Refunding Bond Interest 43,400 36,260 31,220 31,220 25,980 17,820 212.00.591.95011.00 2009 LTGO SCORE Bond Principal 159,200 - - 171,600 179,200 212.00.592.950.83.00 2009 LTGO SCORE Bond Interest 282,551 255,861 249,088 213.00.591.950.71.00 2017 UTGO Principal - 681,000 213.00.592.950,83.00 2017 UTGO Interest 2,000.000 214.00.591.180.71.00 General Obligation Bonds 97,273 101,270 105,268 105,268 107,933 110,598 214.00.591.950.71.00 2010A LTGO, SCORE Bond Principal 267,728 278,730 289,733 289,733 297,068 304,403 214.00.592.180.83.00 Interest on Long-Tenn External Debt 58,210 54,806 50,755 50,755 46,955 42,681 214.00.592.190.85.00 Debt Registration Costs - - - - - - 214.00.592.950.83.00 2010A LTGO Bond Interest 160,215 150,844 139,695 139,695 129,235 117,471 216.00.591.280.71.00 General Obligation Bonds 212,000 220,000 - - - - 216.00.592.220.83.00 2000 LTGO Refunding Bond Interest 17,280 8,800 - - - 217.00.591.950.71.00 General Obligation Bonds 395,000 405,000 420,000 420,000 435,000 445,000 217.00.592.950.83.00 Interest on Long-Term External Debt 152,675 140,825 128,675 128,675 117,300 104,250 218.00.591.760.71.00 General Obligation Bonds 97,788 99,507 93,737 93,737 96,428 99,196 218.00.592.760.83.00 Interest on Long-Term External Debt 15,342 13,623 19,393 19,393 16,702 13,934 220,00.591.950.71.00 2017 LTGO Bond Principal - - - - - - 220.00.592.950.83.00 2017 LTGO Bond Interest - - - - - - Subtotal General Obligation Debt Service 3,215,510 2,654,333 2,745,675 2,936,689 3,175,132 9,259,921 233.00.592,950,83.00 Interest on Long-Term External Debt - 346,7114 286,005 286,005 271,830 257,655 ,233.00.591.950.7 1.00 LID #33 Bond Principal - 605,000 1 670,000, 600,000 450,000 445,000, JTotal Other 3,215,510 3,606,117 1 3,701,680 1 3,822,694 3,896,962 9,962,5761 263 0 2017 - 2018 Biennial Budget Revenue and Expenditure Summary Urban Renewal City of Tukwila, Washington land 280 5 Actual Projected Budget Percent Change 2014 2015 2016 2016 2017 2018 2016.17 2017 -18 Operating Revenue Miscellaneous Revenue Investment Eami s $ 1,216 $ 868 $ 5,198 $ 3,602 $ 3,600 $ 3,600 -0.06% 0.000/0 Total Miscellaneous Revenue 1,216 868 5,198 3,602 3,600 3,600 -0.06% 0.00% Total Operating Revenue 1,216 868 5,198 3,602 3,600 3,600 -0.06% 0.00% Capital Project Revenue Sale of Tukwila Village/KC Library - 500,000 - - - 0.00% 0.00% Sale of Tukwila Village/Phase 1 - 4,325,000 2,230,000 - 48.44% 0.00% Sale of Tukwila Village/Phase 2 - 1,003,000 - 0.00% 0.00% Sale of Tukwila Village/Phase 3 - - 1,286,000 0.00% 0.000/0 Sale of Longacres 1,600,000 - - 0.00% 0.00% Sale of Gregor House - 250,000 - 0.00% 0.00% Sale of Newporter 000 0.00% 0.00% Sale of Motels 2,250,000 0.00% 0.00% Gain/Loss on Invest of Cap. Asset - 0.001/0 0.00% Interfund Loan 1,900,000 - 0.00% 0.00% Bond/Line of Credit 3,850,000 2 250 000 0.000/0 0.00% Total Capital Project Revenue 5,750,000 2,750,000 5,925,000 3,4 ,000 4,311,000 - 41.22% 23.77% Transfers In 0.00% 0.000/0 Total Revenue 5,751,216 2,750,868 5,198 5,928,602 3,486,600 4,314,600 - 41.19°x, 23.7x% Capital Projects Tukwila Village 15,571 14,538 25,907 75 00 35,000 11,000 - 53.33% - 68.57% City Facilities 138,024 14,534 117,295 2,2 ,000 0.00% 0.00% TIB Redewlo ent 3,663,770 1 968 703 680,835 15,000 25,000 25,000 66.67% 0.00% Total Capital Projects 3,817,365 1,997,775 824,037 340,000 60,000 36,000 - 97.44% - 40.00% Interfund Load Repayment 1,900,000 - - - 0.00% 0.000/0 Transfer to General Fund 1,000,000 500,000 2,075,000 1,800,000 6,050,000 - 13.25% 236.11% Total Expenses 6,717,365 2,497,775 82,A, 37 4,415,000 1,860,000 6,086,000 - 57.87% 227.20% Beginning Fund Balance 1,902,602 936,453 1 89,546 1,873,602 370,706 1,997,306 - 80.21% 438.78% Change in Fund Balance (966,149) 253,093 (818,839) 1,513,602 1,626,600 (1,771,400) 7.47% - 208.90% Ending Fund Balance $ 936,453 $ 1,189, $ 370,706 $ 3,387,204 $ 1,997,306 $ 225,906 .41.03% - 88.69°/6 land 280 5 2017 - 2018 Biennial Budget DEPARTMENT: N/A FUND: City Facilities Fund RESPONSIBLE MANAGER: Bob Giberson City of Tukwila, Washington FUND NUMBER: 306 POSITION: Director Description The City Facilities fund is used for new construction or major reconstruction of city facilities Revenue and Expenditure Summary Ll City Facli tees 291 N Actual 2014 2015 Projected 2016 Budget 2016 2017 2018 Percent Change 2018 -17 2017 -18 Rewnue Bond Proceeds $ $ $ $ 6,150,000 $ 23,343,009 0.00% 279.56% Total Revenue 6,150,000 23,343,000 0.00% 279.56% Expenditures Capital Projects Public Works Shops 6,150,000 2 302 000 0.00% - 62.57% Total Capital Projects 6,150,000 2 302 000 0.00% - 62.57% Total Expenditures 61150,000 2,302,000 0.00*4 -62.57% Beginning Fund Balance Change in Fund Balance - 21,041,000 0. Do% 0.00% 0.00% 0.00% Ending Fund Balance $ $ $ • $ $ • $ 21,041,000 0.000A 0.00% 291 N CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2017 to 2022 PROJECT: 42nd Ave South Phase III Project No. 99410303 DESCRIPTION: Design and construct street improvements, drainage, sidewalks, bike facilities, and driveway adjustments. JUSTIFICATION: Provide pedestrian and vehicle safety, drainage, and neighborhood revitalization. STATUS: Phase III (S/C Blvd (154th) - S 160 St), Design began in 2012, construction In 2017. Project No. 99410303 Phase IV (S 139 St - S 131 PI) in beyond. Project No. 99410301 Phase I 90-RWI5 (S/C Blvd (154) - 144 St) $3796 & Phase 11 94-RS02 (144-139) $1,850, both completed. MAINT. IMPACT: Reduce pavement, shoulder, and drainage work. COMMENT: Only Phase III is shown in active years. Project includes Surface Water's Gilliam Creek 42nd Ave S Culvert project for $1.3m and is part of the Walk & Roll Plan. Seattle City Light's funding is a 60/40 underground split. FINANCIAL Through Estimated tintnn(Val 2n15 201R 2n17 MR 2nia 2n7n 7ni1 2n77 Rr-Vnklrk Tf%TAI EXPENSES Phase IV Design 1,000 125 1,125 Land (RAN) 100 100 Const. Mgmt. 750 322 560 1,632 Construction 2,534 1,086 3,800 7,420 Underground ing 2,467 1,057 3,524 TOTAL EXPENSES 1,000 1 125 5,851 2,4651 0 0 0 1 0 4,360 13,801 FUND SOURCES Seattle City Light 1,077 462 1,539 Surface Water 144 4 148 Other Utilities 1 150 136 287 Bond 4,600 1,800 6=400 City Oper. Revenue 855 121 24 67 0 0 0 0 4,360 5,427 TOTAL SOURCES 1 1,000 1 125 1 5,851 1 2,466 1 01 0 1 01 01 4,360 13,801 2017 - 2022 Capital Improvement Program 2 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2017 to 2022 PROJECT: 53rd Ave S (S 137th St - S 144th St) Project No. 99110301 DESCRIPTION: Design and construct urban residential street improvements that include curb, gutter, sidewalk, undergrounding, and illumination. Street will coordinate with Water $1.1 m, Sewer $185k, and Surface Water $920k CIP projects. JUSTIFICATION: Provide pedestrian and vehicle safety, drainage, and neighborhood revitalization, STATUS: Undergrounding is included at this time. MAINT. IMPACT: Reduce pavement shoulder, and drainage work. State TIB grant for $2.14M for roadway and drainage.. See additional pages in Enterprise funds under COMMENT: 53rd Ave S Projects. Seattle City Light is now negotiating a 60/40 underground split and undergrounding costs have been added to project. Bond for $2 million. FINANCIAL Through Estimated tin Snnn'Ri 21)15 211118 2017 2(1111 2n19 2n2n qn?i 7n77 Rs=vnun TATA I EXPENSES Design 83 107 3 193 Land (R/W) 2 98 100 Const. Mgmt. 435 435 870 Construction 1,050 1,050 2,100 Undergrounding 1,125 1,125 2,250 TOTAL EXPENSES 85 1 206 2,613 2,610 1 0 01 01 0 0 5,513 FUND SOURCES Utilities W/S/SWM 25 25 Awarded TIB Grant 900 900 Remainder of grant in SWM 1,800 Seattle City Light 675 675 1,350 Bond 1,000 1,000 CEO(�—O- City Oper. Revenue 60 205 38 35 0 0 0 0 0 338 TOTAL SOURCES 85 205 2,613 2,610 0 0 0 01 01 5,613 2017 - 2022 Capital Improvement Program 3 A CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2017 to 2022 PROJECT: TIB Redevelopment (Motels) Project No. 91330201 DESCRIPTION: Tukwila International Blvd (TIB) Redevelopment Project is for the acquisition and disposition of properties within and adjacent to the City's Urban Renewal Area. JUSTIFICATION: improve the neighborhood's safety by eliminating the high amounts of crime associated with the motel properties; Traveler's Choice Motel, Boulevard Motel, Great Bear Motel and the Spruce Motel. STATUS: City has completed the purchase and demolition of the four motels and the smoke shop. MAINT. IMPACT: Upkeep of property until development. COMMENT: Debt service costs are not shown (see Attachment A). FINANCIAL Through Estimated (in 1000'sl 2015 2016 2017 2018 2019 2020 2021 2022 BEYOND TnTA1 EXPENSES Engineering 353 105 25 25 508 Land (R/W) 5,205 5,205 Const. Mgmt. 2 100 102 Construction 710 710 TOTAL EXPENSES 6,660 1 915 25 25 1 0 0 01 0 0 6,525 FUND SOURCES Awarded Grant 0 Land Sale 2,250 2,250 Bonds 6,100 6,100 City Oper. Revenue (540) 915 25 (2,225) 0 0 0 0 0 (1,825) TOTAL SOURCES 6,560 915 25 1 211 0 1 01 01 0 1 01 6,625 Project Location 2017 - 2022 Capital Improvement Program 47 0 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2017 to 2022 PROJECT: Public Works Shops Project No. 91630601 DESCRIPTION: Construct a new City Public Works maintenance and operations center, combining all operational functions at one location. Facility may also include a City Clerk & Police Records Center and Police evidence storage. Existing Public Works operations and maintenance areas are inadequate structurally and seismically. Current JUSTIFICATION: land for staging dirt and vactor materials is only temporary. Project includes selling dirt/vactor land, Minkler Shops, and George Long Shops to acquire the real estate to build an equipment operations center that meets current codes. STATUS: Separate from the Public Safety Plan. Was formerly known as City Maintenance Facility. MAINT. IMPACT: Improves safety and efficiency for First Responders and maintenance operations. COMMENT: Based on usage and benefits, it is estimated that the Water, Sewer, and Surface water enterprise 1unds will fund 50% of the Public Works Shops with the other 50% funded by Streets, Facilities, & Equipment Rental. FINANCIAL Through Estimated tin 4tnnn'a1 2n1-r. 2n1 9 2n47 2nin 2nia 2n2n 2n24 M22 RF:vnmn TnTAI EXPENSES Design/PM 150 2,302 100 2,552 Land (R/W) 6,000 6,000 Const. Mgmt. 0 Construction 20,941 20,941 TOTAL EXPENSES 01 0 6,150 2,302 21,041 0 0 0 0 29,493 FUND SOURCES Enterprise Funds 14,746 14,746 Councilmatic Bond 14,747 14,747 Proposed Sale of Land 5,000 5,000 Mitigation Expected 0 City Ciper. Revenue 0 0 (23,343) 2,302 21,041 (5,000) 0 0 0 (5,000) TOTAL SOURCES 01 01 6,160 1 2,302 1 21,041 1 01 01 01 01 29,493 Site location to be determined. 2017 - 2022 Capital Improvement Program 61 W 0 J TUKWILA PUBLIC SAFETY PLAN FACILITIES PLAN Project Schedule JFMA 1/10/2017 -4- . . [ ; : [ site selection „ „ ,„ rattiAlfga,, 1721E --ElloopjltaAt„ ! I • completed completion of site selection/program public outreach design and permitting bidding and construction • move-in/occupancy I (A) Architect Contract Approval (B) Contractor Pre-Con Contract COUNCILMEMBER DECISIONS (D) Site Selection (E) Project Budget Changes (C) Contractor Construction Approval (F) Bond Sale #2 (G) GC/CM CPARB M pfm City of Tukwila Finance Committee Meeting: Upcoming Debt Financing April 18, 2017 Public Financial W Management, Inc. 1200 Fifth Avenue Suite 1220 Seattle, WA, 98101 Susan Musselman (360) 445 -0238 Duncan Brown (206) 858 -5367 Overview Soma of Outstandin 2) 0 1 TGO o i den ai Street rc i 20' GO - nds and o to utur nan in endix: D t Ca_a 0 PFM and - r - - date 01 Outstanding General Obligation Debt As of April 2017, the City has $27,218,577 of non-voted general obligation debt and $32,990,000 of voted general obligation debt outstanding Based on its current debt portfolio, the City will amortize approximately 67% of outstanding LTGO debt within the next 10 years. $6 $5 $4 Annual Non-Voted General Obligation Debt Service $3 !!!!!!!!! 0 PFM •• • LTGO Note, 2014 (Taxable) LTGO Bonds, 2015 SCORE 2009B (BABs) • SCORE 2009A • LTGO Bond, 2014 (Taxable) • LTGO Bond, 2013 • LTGO Refunding Bonds, 2011 • LTGO Bonds, 2010B (BABs) E LTGO Ref Bonds, 2008 OMEN EMEM. EMEM. EaM 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2 Outstanding Long -Term Debt O PFM As of April 18, 2017. * Build America Bonds coupons are shown as gross rates, not reflecting Federal subsidy (35% prior to sequestration). ** A portion of the 2014 Bonds will have interest rates reset every five years, based on the Five Year Advance Fixed Bullet Rate, as published by the Seattle Federal Home Loan Bank. 3 Assured Guaranty _ = - - LTGO Refunding Bonds, 2008 $2,165,000 _ n/a Advance refund LTGO Bonds, 1999 6.00% 12/1/19 LTGO Bonds, 2010B (Taxable BABs - Direct Payment) 3,575,000 6/1/20 Acquisition & construction of Southcenter Parkway improvements; emergency preparedness facilities, fixtures, tech. 3.96 - 5.41 %* 12/1/24 n/a LTGO Refunding Bonds, 2011 3,360,000 12/1/21 Advance refund LTGO Bonds, 2003A 3.00 - 4.00% 12/1/23 n/a LTGO Bond, 2013 609,977 n/a �P o) district facility improvements 3.00 - 4.00% 12/1/22 n/a LTGO Bond, 2014 (Taxable) 3,560,000 12/1/19 Tukwila International Boulevard - property acquisition 0.85 - 4.86 % ** 12/1/34 n/a LTGO Note, 2014 (Taxable) 2,250,000 anytime LIBOR + 1.00% 12/1/17 n/a LTGO Bonds, 2015 5,605,000 6/1/25 Pay and reimburse the City for the cost of certain road construction and related improvements 2.25 - 3.00% 12/1/35 n/a UTGO Bonds, 2016 32,990,000 12/1/26 Pay and reimburse the City for the cost of constructing fire stations and acquiring related firefighting apparatus /equipment, constructing a justice center 4.50 - 5.00% 12/1/36 n/a Subtotal $54,114,977 SCORE Bonds, 2009A $220,400 1/1/20 SCORE Facility 4.50 - 5.00% 1/1/22 n/a SCORE Bonds, 2009B (Taxable BABs- Direct Payment) 5,873,200 1/1/20 5.00 - 6.616 %* 1/1/39 n/a Subtotal $6,093,600 Total - General Obligations $60,208,577 O PFM As of April 18, 2017. * Build America Bonds coupons are shown as gross rates, not reflecting Federal subsidy (35% prior to sequestration). ** A portion of the 2014 Bonds will have interest rates reset every five years, based on the Five Year Advance Fixed Bullet Rate, as published by the Seattle Federal Home Loan Bank. 3 Outstanding Long -Term Debt (continued) Water and Sewer Revenue Refunding Bond, 2015 $1,597,704 12/1/20 Advance refunding of the 2006 Water and Sewer Bonds (design / construction of wastewater pumping facilities, force mains and sewer mains, lift stations, and storm drain and water line improvements) 2.34% 12/1/26 1) As of January 1, 2017 v 2) As of April 18, 2017 0 PFM 4 Local Improvement District No. 33 Bonds $5,412,500 n/a Public improvements within LID No. 33 3.15 — 5.375% 1/15/29 n/a Water and Sewer Revenue Refunding Bond, 2015 $1,597,704 12/1/20 Advance refunding of the 2006 Water and Sewer Bonds (design / construction of wastewater pumping facilities, force mains and sewer mains, lift stations, and storm drain and water line improvements) 2.34% 12/1/26 1) As of January 1, 2017 v 2) As of April 18, 2017 0 PFM 4 Residential and Arterial Streets Projects Thousands The City anticipates issuing $8.4 million of Limited Tax General Obligation ("LTGO") Bonds to the fund residential street projects: 42nd Avenue South: Design and construct street improvements, drainage, sidewalks, bike facilities, and driveway adjustments ($6.4 million) 53rd Avenue South: Design and construct urban residential street improvements that include curb, gutter, sidewalk, undergrounding, and illumination ($2 million) The chart below shows estimated annual debt service payments for an $8.4 million LTGO bond issued in late summer of 2017: $700 $600 $500 $400 $300 $200 $100 $0 0 PFM Estimated Annual Debt Service - LTGO Bonds, 2017 '■b '■" (i5'. ri> 1:1' ri:' 1,4 rf2 l'f) ri,\ 115 ri,'1 4) ');\ ',,(1' ')," ,bt.' ,-4'-' ,,,Y) r);\ o Q. o Q o o o o o o o o 0 0 0 0 0 0 0 -1, -1, \l, \ \ \ \ \ '■1\ \ '\1' <i \ 1 <v \ \ 1 \ \ \ \ \ Maturity *Assumes "AA" MMD rates as of 4/11/2017 plus 0.50% "cushion" 5 Indicative Time Schedule - Key Steps Activity Date Preliminary decision to issue bonds April Preparation of Bond Ordinance April - May Bid award for 42nd Ave S Project May City Council Committee of the Whole considers Bond Ordinance May City Council Meeting to consider Bond Ordinance May Disclosure Activity May - June Bond rating agency activity May - June Bond sale June Bond closing - proceeds received July Bid award for 53rd Ave S Project September O PFM 6 Review of 2014 LTGO Bonds and Note In December 2014, the City issued its $2.25 million Limited Tax General Obligation Bond Anticipation Note, 2014 (the "2014 Note") and $3.85 million Limited Tax General Obligation Bonds, 2014 (the "2014 Bonds") . Both were used to acquire properties along Tukwila International Boulevard 'The 2014 Note has a final maturity of December 1, 2017 'The 2014 Bond has a final maturity of December 1, 2034, and is subject to optional redemption on December 1, 2019 'At the time of issuance, the City anticipated using proceeds from a subsequent sale of the TIB properties to repay the 2014 Note 'As the maturity date approaches, the City may consider alternatives for repayment or refinancing the 2014 Note 0 PFM 7 Bond Anticipation Note Considerations The City has several options as it relates to the 2014 Note: TI) Refinance with cash City could use proceeds from other sources (i.e. Tukwila Village), if available Refinance with long-term Unlimited Tax GO (voted) debt If property is used for Justice Center, the City could refinance the 2014 Note with a UTGO bond issue in 2017 (may involve amending the Public Safety Plan) Refinance with long-term Limited Tax GO (non-voted) debt If property will be used for some other governmental purpose of the City 4) Extension or replacement Most flexible option (could be refinanced with other options - cash, LTGO, or UTGO - at a later date) Process would involve soliciting proposals from existing and potential replacement line of credit providers and bringing a note ordinance back to the City Council in fall 2017 0 PFM 8 Future Financings The City also anticipates issuing additional bonds in the next two years: Project Funding Source Public Works (City Shops) LTGO Bonds Public Safety Facilities Plan UTGO Bonds Funding Amount ($Million) $29.5 Year of Issuance 2018 24.1 2019 Total $53.6 *Funding sources, amounts, and the expected timing are preliminary and subject to change O PFM 9 Appendix: Debt Capacity and Market Update Calculation of Debt Capacity .The table below summarizes the City's non -voted and total general obligation debt capacity, as limited by statute 2016 Assessed Value for 2017 Tax Year Non -Voted Debt Capacity (1.5% of AV) Less: Outstanding Non -Voted Debt $5,751,820,403 $86,277,306 (27,218,577) Remaining Non -Voted Debt Capacity nicl 2016 Assessed Value for 2017 Tax Year Total Debt Capacity (2.5% of AV) Less: Outstanding Voted Debt Less: Outstanding Non -Voted Debt $59,058,729 $5,751,820,403 $143,795,510 (32,990,000) (27,218,577) Remaining Total Debt Capacity for General Municipal Purposes(1) N 01 O PFM $83,586,933 12 Market Update 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% Municipal Market Data (MMD) "AA" GO Yield Curve 3 Years Ago (4/11/2014) 2016 Bonds (11/30/2016) Current (4/11/2017) Bonds :(4/28 20.15 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Current (4/11/2017) 2016 Bonds (11/30/2016) 2015 Bonds (4/28/2015) Bond Buyer 20 -Bond GO Index vs. 30 -Year Treasury Three Years: April 2014 to April 2017 3 Years Ago 0\1'4 644 O4'4 A 01b 01b 01b Orb 01 0�1 P9c Oo� ,ate Pit >�� O& 1 PC' O& ,ate 'O —20-Bond GO Index 30 -Year Treasury O PFM 13 N Market Update - Interest Rate Forecasts Most market participants expect interest rates to rise modestly through 2017 The chart below shows consensus forecasts from numerous financial institutions 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% O PFM Quarterly Historical and Forecasted Interest Rates Historical Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 End of Quarter Federal Funds Rate (Upper Bound) 3 Month Libor 10 -Year US Treasury Bond 2 -Year US Treasury Note Q4 17 Q1 18 Q2 18 14 m City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Allan Ekberg Finance Committee FROM: Peggy McCarthy, Finance Director BY: Craig ZeUUerhoff, Fiscal Coordinator DATE: April 12,2017 SUBJECT: Update Tukwila Municipal Code by removing section 3-32-040 "^Umbudgeted Equipment or Fixed Assets" ISSUE Streamline purchasing practices by removing section 3.32.040 "Unbudgeted Equipment or Fixed Assets" from the Tukwila Municipal Code (TK8C) and repealing Ordinance No. 2245. BACKGROUND Council control over procurement. Fio9d,4ySetG. |n November 1S97. City Council adopted Ordinance No. 1817 establishing Chapter 3.32' Budget Provisions, which included section 3.32.040 "UUbudQ8ted Equipment Or Fixed Assets". TW1C 3.32.040 requires the approval of the Mayor and three affirmative votes ofthe respective Council Committee to approve the purchase of unbudgeted capital equipment or fixed assets, including components or Sen/icoa of it8nnG related to capital equipment or fixed 8SGe[S. Fixed asset items were defined as costing at least $1,000 and having a useful life of at least two years, Ordinance No. 2010. adopted in December 2002. changed the minimum limit for capital equipment from $1.00OtO$5,OOO. Other Goods and Services. TK8C section 3.32.030 "Bids" requires Council approval Of all purchases $4O thousand and above. DISCUSSION It is the City's responsibility to utilize taxpayers' dollars in the most effective and efficient way possible while adhering toapplicable laws and regulations. Council has established a$4O,OOO mayoral 8pp[OVa| limit for the procurement of goods and Sen/iC8S. COUOCi| 8pp[Ov@| is required for all purchases Of goods and services $40,000 and above. The process Vfobtaining Council approval for the purchase of the uDbVdgeted fixed assets between $5,000 and $40,000 takes Council and staff time and in an effort to streamline practices in accordance with LEAN principles, it is recommended that section 3.32.040 "UObUdgeted Equipment or Fixed Assets" be removed from the TK4C and the remaining TMC 3.32.030 "Bids" serve as Council control over procurement Of all goods and services, including unbudgg18d fixed assets. RECOMMENDATION Council is being asked to approve the Ordinance toamend Ordinance No. 2245 by removing section 3.32.040 "Unbudg8tHd Equipment or Fixed Assets". This item is scheduled for the April 24.2Oi7 Committee of the Whole, and the May 1,2O17 Regular Council Meeting. ATTACHMENTS Ordinance tO repeal Ordinance No. 2245. Copy Of Ordinance No. 2245 30 TAW AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING ORDINANCE NO. 2245 §1 (PART), AS CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 3.32.040, "UNBUDGETED EQUIPMENT OR FIXED ASSET ITEMS"; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the process for unbudgeted equipment or fixed asset items was originally adopted in 2002, and the City routinely reviews processes and procedures to validate their effectiveness; and WHEREAS, it is the City's standard operating procedure to ensure spending does not exceed the approved final budget, and eliminating this section of the code will streamline processes for greater efficiency; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Repealer. Ordinance No. 2245 §1 (part), as codified at Tukwila Municipal Code (TMC) Section 3.32.040, "Unbudgeted Equipment or Fixed Asset Items," is hereby repealed, thereby eliminating TMC Section 3.32.040. Section 2. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. W: Word Processing\Ordinances\Repeal ordinances relating to TMC 3.32.040 4-12-17 CZ:bjs Page 1 of 2 31 Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of )2017. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing\Ordinances\Repeal ordinances relating to TMC 3.32.040 4-12-17 CZ:bjs 32 Page 2 of 2 y ut iukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL oiz "rHE CITY OFTLJKWILA, WASHINGTON, AMENDING REGULATIONS REGARD]NG, 1311.) PROCEDURES AND ADDING EMI.,"I((',,ENCY I"ROCUREMEN'T PROVISIONS; REPEALING ORDINANCE NOS. 2010 AND 1.817, AS CODIIJED AT TUKWILA MUNICIPAL CODE CHAPTEER, 132, PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN E" FFE("riv F DATE. WHEREAS, the City of Takwila seeks tc), e tablish an authorized lovel of prc)curement, vhich allows for effective and efficient operation of the City's busilless by the Mayor gar department directors; and WHEREAS, the authorized level of purchasing by the Mayor has ren'lailled at the same imountsince'1997; and WHEREAS, the City of'Fukwfla seeks tc) establish an emerglency purchasing policy consistent With State law; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Regulations Aniended.Tukwfla Municipal Code Chapter 332, "Buidg(l J-Irovision,,," is hereby amended to read as follows:: 3.32,010Transfers. Pursuant to RC VV 35A.33120, transfers within, as departimen� or division of the separate funds of the annual budget shall be by formal motlon of the City ( buncil ,3.32.020 Salary Increase. No saL)ry shafl be increased above the amount provided therefor in die annual bud�g,et and specified in the adopted salary pian of the (" ity. Salaric,s may be iricreased subsequ(mit to salary plan changes formally approved by the City Coumcj� 3.32.030 Bids. When pr(sVided for ill tile anlival budget, the Mayor is authorized to call for bids on public works projects or procure goods or profcssronal services when the project 01` procurement, ioClUding change orders or a rnend mci its, does riot exceed $40,000. 3. 32.040 Unbudgeted Equipment or Fixed Asset Items, Ali), unbudgeted capital equipment or fixed asset itens, including, cornponenvs or servic(,,as of items, shati be approved by the Mayor and three affirmative votes 0 the respective Council coll-mlittee assigned to the requesting department, "Frxed asset" items are defined as costing at least $5,000 and havii)g as LISCfUl life of at least two years, W 'Word PmO%Pons @ kk' 3 32 doc Yf kmi 07/14/200() 11age 1 of'2 33 3.32.050 Emergency Procurement. The Mayor or City Administrato)r is 1wreby authorized to waive corropetifive bidding requirements in the event of an emergerx'y, as defined by RCW 39,04.280(3), Such an emergeacy,will be, declared in wrifind; b y thie Mayo,)r or City Administra tor. 1 : he City Council will meet within two weeaks following, thcw award ()f' the contract io) consider adoption of as resolution cortifying that the emergency situation existed and for approval of the procurement. Section 2. Repealer. Ordinance Nos. 2010 and 1817, as codified at Tukwda Municipal Code Chapter 332, "Budget Provisions," are hereby re peale(t Section 3. Severability, If any section, subsection, para�,';Iraph, sentence, Clause or phrase of this ordinance or its application to any person or situation should be held to be imalicl or unconstitutional for any reason by as court of cornpetent �uriso:ficdon, such, invalidity or unconstitutionality shall not affect the validity or Constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 4. Effective Date. 'Ihis ordinarice or a surnmar ' y thereof shall be published in the official newspaper of the City, and shall take effect and be in full forCe and effect five days after passage and I)LI11fiCatiOrl as provided by law. PA,SSET) BY THE CITY C0LJNCJ1,OFTH'F, WASHINGTON, ata Regular Meeting thereof this day of 2009, A'I " I'Egl'/ A ,Y'ri 'JENTICATFI)- Christy, O'Flaherty, CNIC, City derk APPROVED ASJ A M BY: 6ifim' 16, the City t rlle . . ................ ............................................... Jin a gger , An or ..... Filed with the City Clerk: Passed by the City C "'OUTIct ublished: E ff ecfive ---------- Ordinance Nunrl'.)er: 1 ) U I - W \Wwd Pnmsions `9 ifla 3, aQ doc 34 Sto k%n 07/W2009 11age 2 of2 SUMMARY OF Ordinance No. 2245 City of Tukwila, Washington On July 20, 2009 the City Council of the City of Tukwila, Washington, adopted Ordinance No. 2245, the main points of which are summarized by its title as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING REGULATIONS REGARDING BID PROCEDURES AND ADDING EMERGENCY PROCUREMENT PROVISIONS; REPEALING ORDINANCE NOS. 2010 AND 1817, AS CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 3.32; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. The full text of this ordinance will be mailed upon request. Approved by the City Council at a Regular Meeting thereof on July 20, 2009, QQ Christy O'Flahert, CMC, City Clerk Published Seattle Times: July 23, 2009, WAOrdSuninianes\Summary Ord 2245.doe 35 36 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Councilmembers CC: Mayor Ekberg FROM: Peggy McCarthy, Finance Director BY: Craig Zellerhoff, Fiscal Coordinator DATE: April 7, 2017 SUBJECT: 2017 February Year to Date Financial Update Summary The purpose of the 2017 Financial report is to summarize for the City Council the general state of Departmental expenditures and to highlight significant items or trends. The following provides a high -level summary of the Departmental financial performance. The 2017 February YTD report is based on financial data available as of April 6th, 2017, for the reporting period ending February 28th, 2017. Additional details can be found within the attached financial report. Allocated budgets through the reporting period are calculated by analyzing spend patterns in the previous year and allocating the current year budget using the same spend pattern. If a line item had no expenditures in the prior year but a budget in the current year, the allocated budget for the current year would be zero. Departmental Expenditures General fund expenditures totaled $9.7 million as compared to the allocated budget of $10.1 million, which is $475 thousand below budget. Notable variances are as follows: • Recreation department is above budget by $23 thousand. Administration salaries and benefits are greater than 2016 due to being fully staffed in 2017. Supplies are higher than normal due to costs associated with the 20 -year Gala celebration. The department also incurred expenses related to the Teen visit to Olympia, these costs were funded through a grant /donation from World Vision. • Fire department is above budget by $53 thousand. This is attributed to the staffing of the unbudgeted pipeline positions (5 vs 3 in 2016) to maintain minimum staffing levels. The department experienced a greater use of overtime in January of $25 thousand and $2 thousand in February compared to 2016. • Park department exceeded budget by $32 thousand. This is a result of the department being fully staffed in 2017 compared to 2016. They also incurred a higher level of spending on supplies as they are being more proactive and intentional in the planning and preparation for busier summer months. rGyA INFORMATIONAL MEMO Page 2 Year to Date Department Expenditures Compared to Allocated Budget (Through February 2017) City Council $$78 Mayor $601 Human Resources $101 $133 Finance 110 l l l l l l l l l l 4 $795 i IN $1,000 $2,000 11111 Year to Date RAllocated Budget M $3,000 $4,000 Thousands INFORMATIONAL MEMO Page 3 GENERALFUND CITY OF TUKW ILA GENERAL FUND EXPENDITURES YTD AS OF FEBRUARY 28, 2017 4/12/2017 12:24 Percent of year completed 16.67 I r J BUDGET ACTUAL COMPARISON OF RESULTS SUMMARY OF EXPENDITURES BY ACTUAL DEPARTMENT 2017 OVER/(UNDER) %CHANGE ALLOCATED 2017 ANNUAL ALLOCATED 2015 2016 2017 BDGT % SPENT 2015/2016 201612017 01 City Council 366,016 77,629 57,873 60,668 58,185 (19,444) 16% 5% (4)% 03 Mayor 4,079,582 601,159 452,478 571,486 554,399 (46,760) 14% 26% (3)% 04 Human Resources 706,208 132,792 106,412 110,775 100,818 (31,974) 14% 4% (9)% 05 Finance 2,638,813 794,856 674,887 686,397 713,615 (81,241) 27% 2% 4% 06 Attorney 716,955 68,400 46,243 50,661 46,449 (21,951) 6% 10% (8)% 07 Recreation 3,384,688 449,186 426,122 437,676 472,876 23,689 14% 3% 8% 08 Community Development 3,693,338 502,711 431,817 418,285 503,804 1,093 14% (3)% 20% 09 Municipal Court 1,307,808 209,547 179,704 184,736 185,388 (24,159) 14% 3% 0% 10 Police 18,288,092 3,310,154 2,934,692 3,168,001 3,003,706 (306,448) 16% 8% (5)% 11 Fire 11,862,568 2,049,160 1,892,113 1,916,114 2,101,913 52,754 18% 1% 10% 12 Technology& Innovation Svcs 2,026,820 266,615 166,499 184,195 226,328 (40,287) 11% 11% 23% 13 Public Works 3,802,639 659,238 652,928 650,142 659,816 578 17% (0)% 1 15 Park Maintenance 1,418,760 223,961 227,665 203,683 256,158 32,197 18% (11)% 26% 16 Street Maintenance & Operations 3,109,592 743,032 610,656 717,372 738,068 (4,964) 24% 17% 3% 20 Dept 20 5,501,474 57,795 50,000 50,000 50,000 (7,795) 1% 0% 0% Total Expenditures 62,903,353 10,146,234 8,910,088 9,410,191 9,671,522 (474,712) 15% Percent of year completed 16.67 I r J INFORMATIONAL MEMO Page 4 GENERALFUND CITY OF TUKW ILA GENERAL FUND EXPENDITURES YTD AS OF FEBRUARY 28, 2017 4/12/2017 12:28 Percent of year completed 16.67% BUDGET ACTUAL COMPARISON OF RESULTS SUMMARY OF SALARIES AND ACTUAL BENEFITS 2017 OVERJ(UNDER) % CHANGE ALLOCATED 2017 2017 ANNUAL ALLOCATED ALLOCATED 2016 2017 BDGT % SPENT 2015/2016 2016/2017 2017 ANNUAL ALLOCATED 2015 2016 2017 BDGT % SPENT 2015/2016 2016/2017 11 Salaries 27,560,991 4,611,116 4,271,986 4,410,807 4,497,579 (113,537) 16% 3% 2% 12 Extra Labor 777,897 87,293 67,845 91,248 79,487 (7,805) 10% 34% (13)% 13 Overtime 1,632,035 208,665 253,674 197,656 286,821 78,156 18% (22)% 45% 15 Holiday Pay 525,583 489 - - 489 - 0% - - 21 FICA 1,809,260 297,684 273,904 281,354 290,651 (7,033) 16% 3% 3% 22 Pension- LEOFF2 849,253 132,612 124,794 130,126 133,423 811 16% 4% 3% 23 Pension - PERS /PSERS 1,580,986 256,093 187,511 223,620 239,905 (16,187) 15% 19% 7% 24 Industrial Insurance 864,098 125,803 86,878 101,538 95,951 (29,853) 11% 17% (6)% 25 Medical & Dental 5,903,094 987,403 879,780 937,275 935,400 (52,003) 16% 7% (0)% 26 Unemployment 13,000 - 1,285 10,624 471 471 4% 727% (96)% 28 Uniform /Clothing 10,460 1,349 920 520 630 (719) 6% (43)% 21% Total Salaries and Benefits 41,526,657 6,708,507 6,148,578 6,384,767 6,560,809 (147,698) 16% 4% 3% Percent of year completed 16.67% Percent of year completed 16.67% nil BUDGET ACTUAL COMPARISON OF RESULTS SUMMARY OF SUPPLIES, ACTUAL SERVICES, AND CAPITAL 2017 OVERJ(UNDER) %CHANGE ALLOCATED 2017 ANNUAL ALLOCATED 2015 2016 2017 BDGT % SPENT 2015/2016 2016/2017 Transfers 5,501,474 57,795 50,000 50,000 50,000 (7,795) 1% 0% 0% 31 Supplies 1,164,823 176,926 142,439 169,050 165,705 (11,221) 14% 19% (2)% 34 Items Purchased for resale 22,000 69 214 (1,115) 69 - 0% (621)% (106)% 35 Small Tools 99,818 17,421 57,387 8,367 16,060 (1,361) 16% (85)% 92% 41 Professional Services 3,266,711 264,305 128,967 234,474 211,216 (53,089) 6% 82% (10)% 42 Communication 449,970 50,231 45,772 47,030 42,555 (7,676) 9% 3% (10)% 43 Travel 192,380 40,459 15,161 27,008 30,794 (9,665) 16% 78% 14% 44 Advertising 51,500 3,928 1,682 3,239 4,237 309 8% 93% 31% 45 Rentals and Leases 2,314,372 499,547 431,084 435,663 355,612 (143,935) 15% 1% (18)% 46 Insurance 886,895 879,866 778,210 804,035 880,875 1,009 99% 3% 10% 47 Public Utilities 1,893,570 561,092 441,044 539,968 581,973 20,881 31% 22% 8% 48 Repairs and Maintenance 732,613 88,089 143,759 66,371 117,078 28,988 16% (54)% 76% 49 Miscellaneous 1,562,773 315,762 144,956 204,195 182,259 (133,503) 12% 41% (11)% 51 Inter - Governmental 3,003,792 472,242 380,830 421,069 462,269 (9,973) 15% 11% 10% 53 E # Taxes, Oper. Assess 5 - 4 6 16 16 326% 49% 170% 64 Machinery & Equipment 234,000 9,995 - 16,063 9,995 - 4% - (38)% Total Supplies, Services, and Capital 21,376,696 3,437,727 2,761,510 3,025,424 3,110,713 (327,014) 15% 10% 3% Percent of year completed 16.67% nil City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: City Council FROM: TIS Department BY: Joseph Todd Technology and Innovation Services Director CC: Mayor Ekberg DATE: 04/18/2017 SUBJECT: Technology and Innovation Services Quarterly Report ISSUE During the 2017/2018 biennial budget process, Technology and Innovation Services (TIS) committed to City Council to provide a quarterly report on the status of the City's new investments in technology. DISCUSSION In 2016, Technology and Innovation Services, along with departmental stakeholders, developed a technology strategy that required new investments from the City General Fund. These investments are funding 5 key technology initiatives that are critical to the implementation of the City's technology strategy. As a refresher, here are the 5 key initiatives: 1. Transition to the cloud (transition on premises applications and infrastructure to the to the cloud) 2. Connected city and network infrastructure changes (invest in robust security measures, increased bandwidth, city and facility wide Wi-Fi, and scalable infrastructure) 3. Contract Helpdesk Support, Training, IT Service Management, and FTE Increases (hire tier 1 and 2 contract help desk support, deliver onsite and webinar based training, transition city to IT service management model, increase staff through internal transfers) 4. GIS services expansion and integrated data services (expand GIS services to cover city wide addressing, asset management, and back in integration with city wide records management systems) 5. End user computing refresh (update end user computers with new leased computing model) As part of City Council's approval of the new technology investments, TIS was asked to provide a quarterly report outlining the status of the 5 key initiatives in both progress and budget expenditure. 41 INFORMATIONAL MEMO Page 2 FINANCIAL IMPACT Initiatives Budget Initiative 2015 2016 2017 2018 2017/2018 Total Transition to the cloud X X $ 77,000.00 $ 77,000.00 $ 154,000.00 Connected city and network infrastructure changes $34,417.00 $10,000.00 $ 43,000.00 X $ 43,000.00 Help Desk Support, Training, IT Service Management X $73,000.00 $124,000.00 $124,000.00 $ 248,000.00 GIS services expansion and integrated data services X X $ 90,000.00 $ 90,000.00 $ 180,000.00 End user computing refresh $ 29,657.00 $18,596.00 $123,000.00 $123,000.00 $ 246,000.00 FTE Transfers FTE 2015 2016 2017 2018 Police Tech Admin transfer 1 1 GIS Cordinator transfer 1 1 Deputy Public Works Director transfer 1 1 61 61 91 91 IT Staff Total ATTACHMENTS Quarterly report 42 https:/ /tukwilawa- my.sharepoint.com/ personal /joseph_todd_tukwilawa —gov2 /Documents /Infomemo_technology report.doc Projects KPI (Key Performance Indicators) Transition to the cloud Connected City and Network Infrastructure Changes Help Desk Support, Training, ITSM, Increase FTE GIS and Integrated Data Services Computing Refresh Schedule Q1 - Q4 2017 25% 30% 45% 25% 25% Budget $166,000 Other $77,000 $20,000 T Budget Actual $43,000 T Budget $2,600 Actual $133,249 T Budget $17,000 Actual $317,000 1 $90,000 $52,000 Other T Budget Actual $150,000 $123,000 T Budget Actual Resources =1.70 IT =1.50 IT =2.00 IT = 2.00 IT =1.80 Achievements d Perfect Mind Parks and Recreation Management implementation kickoff d Implement I-map in Esri online services V Working w ith MS on POC for moving to cloud database services d Made new investment in threat protection and data loss protection Deployed Wi-Fi infrastructure to all fire city facilities • Started Process of delivering Wi-Fi infrastructure for comma n ity connection to the internet • Implemented Vitalyst Help Desk Service • Implemented Self-servicetraining hub Deployed transition to SharePoint • Hired Police Technology Support Hiring d Transition GIS Coordinator IT d Made Key Investments in GIS softw are City Engine and ESRi Analytics ✓ Implemented ESRi Online Services d Deployed I-Map Negotiated laptop Lease and Service contract w ith Dell Council Approved Leased Signed FO and contract by Mayor Dell started Manufacturing Process Key bilestones • Perfect Mind Go-Live (Aug 1) • I-map go live ( Apr.30) • Database Services POC starts in July • Upgrade Network Backbone Speed • Client Based VPN Testing • Wi-Fi connect City Zone 1 Wi-Fi connected City Zone 2 ▪ Hired Police Support ▪ In process of hiring IT Business Analyst Transition GIS Coordinator to IT • Start Deployment POC in May w ith frontline employees Legend: Project Status : On Schedule Off Plan Work Stopped Complete FTE : Er Percent Complete Schedule: % Milestone : Overall Status Manager: Joseph Todd Project Description: Implement new parks and recreation cloud based business management system. Deploy Office 365 work loads: SharePoint, One Drive, Single Sign On, Two Factor Authentication, GIS Online, Online Services for DCD and Public Works Project Manager: Tami Eberle, Roman Linsao, Bao Trinh City Benefit: Transition to cloud applications to create more reliable scalable systems and implement out of region disaster recovery plan. 2017 Schedule Office 365 Phase 1 Outlook Milestone 1 Project Kickoff Office 365 Phase 2 One Drive Software Configuration Admin training Milestone 3 Perfect Mind End user Training Milestone 4 Perfect Mind Office 365 Phase 3 SharePoint Azure Cloud SQL Services POC 'Contract Signed Perfect Mind Discovery Phase Milestone 2 Perfect Mind Purchase GIS Analysis Tools (City Engine and ESRi Analytics ) Data integrations Milestone 3 continued.... Perfect Mind Cloud based time keeping for Fire User Acceptance Milestone 5 Perfect Mind Go Live Milestone 6 (Aug 1, 2017) Perfect Mind Overall Status: • Kick-off meeting v - Started business current bu ine Vendor is ct ectino ndor to r e =; ='at ` °e e [s of the project fa,. "y with f ark and recreation staff with members of the team participating to bring owledge s site rind s©udi;yin cif Phase 1 and 2 complete. Phase 3 currently underway with training and ?funning for Sha t," an itio Accomplishments: • Perfect mind project site created • Participated in perfect mind Kick -off meeting Jan 2017 • Discovery meeting completed with perfect mind support Feb 2017 • Started training and Implementation Risks & Mitigation Plan Organization /Program level: Project level: 1Ssu es: Actions: Technical Plan Issues: I No Issues on plan Actions: Mem Budget $100,000 P& R $77,000 IT $16,000 DCD $50,000 Fire Issues No issues Action; Schedule Issues: Pushed Implementation date out fromApril to Aug 1, 2017 due to contract negotiations. Actions.: Legend: Project Status : On Schedule Off Plan Work Stopped • Complete Current Date : • Milestone : Overall Status Manager: Joseph Todd Project Manager: Bao Trinh Project Description: Implement Network 2.0extending access to TUK- Public, refresh network infrastructure, provide access points, increase network speed, provide end user virtual private network solution, add additional layer of network security, Provide free public access to Internet with City excess bandwidth. City Benefit : Transform our network infrastructure to be scalable, reliable, and better positioned for catastrophic events. 2017 Schedule Password Reset Portal New Web Proxy Testing Phase Wi -Fi Phase 1 Installation Of Equipment at FD ▪ Upgrade Network ▪ Backbone Speed ▪ Phase 1: ▪ Information ▪ Gathering Wi -Fi Connected City Zone 1 Deployment POC Wi -Fi Connected City Zone 2 Deployment Increase Internet Web Based VPN Bandwidth Testing Phase Wi -Fi Phase 1 Equipment Configuration Installation Of New Firewall Services (Proxy, Antivirus) Client Based VPN Testing Phase Overall Status: • Started Wi FI access extension throughout cIEV OWIled buildings. Phis ' 1 is in progress. TestTha Network Securay mves ants Web and client base" VPN Con testis ' phoses. Risks & Mitigation Plan Organization /Program level: Technical Plan Issues: Project level: No Issues on plan Issues: 1 Actions: Become more proactive with Internet related secu rity risks. Actions• Wil be implementing additional firewall based security m ures which include virus checking, malware sandboxing, an intrusion detection. Legend: Project Status : On Schedule Off Plan Accomplishments: Work Stopped Budget $43,000 rr Complete Current Date : • Milestone : Issues No issues Actions.: Schedule ISSUE'S' I No current issues Actions. Overall Status mine - -6 - - a-lace e t Manager: Joseph Todd 1 Project Manager: Mike Marcum Project Description: Provide a better framework for consuming IT services. This includes ITSM, IT Service Management, Help Desk Portal, Customer Portal and persona driven IT service, Vitalyst Help Desk Services, Improved access to data City Benefit : City employees can receive end user training, immediate support, and tracking of software and services so they can focus on citizens not on broken computing 2017 Schedule Indigo Slate: Creation of Customer Portal Phase 31Fresh services cRigoing evaluMion Phase4 Fresh Services ongoing evaluation Phase 1 Vitalyst Go -Live Phase 2 Vitalyst: Ongoing evaluation of services to refine end -user experience Fresh Services Phase 1: Setup of new Helpdesk Fresh !ervices Phase 2 Vitalyst: PhAe 2: Ongoing evaluation Go- ive of services to refine end -user experience Fresh Services Phase 3: Persona Based Service Catalog Phase 3 Vitalyst: Ongoing evaluation of services to refine end -user experience Overall Status: Overall oil pion is on s iieUuie 1 Accomplishments: Completed Prose 7 go live of Vitoiys Went live with live with fresh service Comer Go Risks & Mitigation Plan Organization /Program level: Project level: Issues: No Risks to report Actions,: Legend: Project Status : On Schedule Technical Plan Issues: No Issues on plan Actions: Off Plan Work Stopped i Issues: No Issues Cost on track Actions: • Complete Current Date : • Milestone : Schedule: Implement by end of 2nd Quarter Issues: No Issues on schedule Actions• Overall Status GI ices Status Date: 8/2017 Manager: Joseph Todd Project Description: All departments pulling integrated mapping, assets, streets, parcel, and addressing data from single location. Project Manager: Tami Eberle and Roman Linsao City Benefit : Expanded GIS data services provides one integrated source for all department business and emergency systems to be synced with one source of city detailed latitude and longitude data. This increases accuracy of emergency response information, crime data transparency ,city topography transparency, economic development detail maps for city marketing and central source for all city addressing and mapping needs. 2017 Schedule Update GIS as single source of Addressing 1/15 Deploy Streets Data to Police and Fire Addressing Project Updated VR ▪ experience with ESRi city Engine ▪ A Tukwila I -map Expand Esri GIS Based Asset Project Online services Tracking RFP 5/10 Self- Service Addressing 6/2 GIS Based Asset Tracking Application acquisition and development 6/10 Overall Status: Accomplishments: Work gw_thfi a =ce,PublcWoris, C ,Polcea dFretoesta is phase 2 process for updating the GISdatawarehouse • Reconciled addressing with a mailing successes right of 99.6% Risks & Mitigation Plan I Technical Plan I Budget .7= = Schedule: Organization /Program level: Issues: No Issues on plan Actions: Actions: Legend: Project Status : On Schedule $ 90,000 IT $ 301,000 PW ral Work • Stopped Complete Current Date : • Issues On budget on issues Issues: Actions. Actions; Milestone : Overall Status echnol Manager: Joseph Todd Project Manager: Jay Smmot Project Description: Refresh aging computers, peripherals, and laptops in all departments City Benefit : New computers have the processing powering needed to run new software packages, Laptops can be used to ensure business continuity during a major disaster event, Vendor imaging, deployment, and easier replacement, Our public works, fire, police, and dcd teams gain mobility allowing them to stay out in the field longer to meet increasing public demand 2017 Schedule Dell Device Services Negotiations I Dell Lease Pricing Negotiations Dell Lease Contract Approval Dell Device Contract Defined • Start Iritial Device DeploMrnent POC Phase 2 device deployment Phase 1 Device Deployment Phase 3 Device Deployment Overall Status: • Lease has been signed de'ii is currently mt ring eguipmen Accomplishments: • Lease has been signed Dell is manufacturing product Risks & Mitigation Plan Organization /Program level: Project level: list es: Current computing is 3 years over computer utilization bench mark Actions: Technical Plan 1 Issues: No Issues on plan I Actions: Budget: $150,000 Issues: Actions: Schedule I SSUe_s: Actions. rWork • al Stopped Complete Current Date : •