HomeMy WebLinkAboutFIN 2018-07-05 COMPLETE AGENDA PACKETCity of Tukwila
Finance Committee
De'Sean Quinn, Chair
O Dennis Robertson
O Kate Kruller
AGENDA
THURSDAY, JULY 5, 2018 — 5:30 PM
HAZELNUT CONFERENCE ROOM
(At east entrance of City Hall)
(RESCHEDULED FROM JULY 3, 2018)
Distribution:
D. Quinn
D. Robertson
K. Kruller
V. Seal
K. Hougardy
T. McLeod
Z. Idan
Mayor Ekberg
D. Cline
C. O'Flaherty
L. Humphrey
Item
Recommended Action
Page
1. PRESENTATION(S)
2. BUSINESS AGENDA
a. Technology consultant contract with Gartner.
a. Forward to 7/16 Consent
Pg.1
Joseph Todd, Technology & Innovation Services Director
Agenda.
b. Strategic Plan and Priority Based Budgeting update.
b. Forward to 7/9 C.O.W. and
Pg.17
Laurel Humphrey, Council Analyst
7/16 Regular Mtg.
c. Compensation policy for City employees.
c. Discussion only.
Pg.31
Stephanie Brown, Human Resources Director
d. 2018 1St Quarter Sales Tax and Miscellaneous Revenue
d. Discussion only.
Pg.39
Report.
Peggy McCarthy, Finance Director
e. Update on financing the Public Works Shops for the
e. Discussion only.
Pg.47
Public Safety Plan.
Peggy McCarthy, Finance Director
3. ANNOUNCEMENTS
4. MISCELLANEOUS
Next Scheduled Meeting: Tuesday, July 17, 2018
t). 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
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Joseph Todd (TIS)
BY: Joseph Todd &• Joel Bush
CC: Mayor Ekberg
DATE: July 05, 2018
SUBJECT: Gartner Contract
ISSUE
Technology and Innovation Services would benefit by leveraging the capability of
an information technology advisory service to provide: vendor research, contract
review and analysis, benchmarking, advisory, and professional development to
support the long-term strategy and execution of the City of Tukwila's Digital
Transformation.
BACKGROUND
Technology and Innovation Services is seeking unbiased external guidance to help
make contextualized decisions on TIS long term strategy and critical initiatives. This
includes:
• Mitigating product decision risk by leveraging vendor research to ensure we
select the right partners, products, terms, and pricing.
• Using industry and government wide best practices to improve and accelerate
change in the organization.
• Networking with qualified peers who can help uncover innovative approaches to
complex issues.
• Leveraging a single source of knowledge and insight focused on City and
department level IT challenges and service delivery in their context.
• Utilizing the shared knowledge of a community of technology advisors that are
focused on the deployment and execution of IT in government and private
industry.
DISCUSSION
Technology Innovation Services researched 4 information technology advisory firms
which included: Gartner, Inc., Info -Tech Research Group, Forrester, and Tech Target.
After reviewing the listed services, TIS selected Gartner due to the robustness of its
research and advisory service, ability to do contract and best practice review, and
1
2
INFORMATIONAL MEMO
Page 2
provide knowledge networking with industry leaders. In our review we also found the
existence of a master contract with the Washington State Department of Enterprise
Services (# 05712: for Gartner IT Research and Advisory Services).
FINANCIAL IMPACT
6 months promotional pricing = $39,137.50
Option to purchase 7 months = $53,121.83
RECOMMENDATION
The Committee is being asked to approve the attached contract under consideration
and forward to the July 16th Regular Meeting Consent Agenda.
ATTACHMENTS
Gartner contract using the City of Tukwila standard contract for services template.
Z:\Council Agenda Items\Technology Services\Gartner_InfoMemo_Draft.doc
Purpose
This document was created to provide extra context for the renewal of the City of Tukwila's Gartner
Executive Programs Membership.
The first 6 months of this contract starting on January 15t, 2018 and ending on June 30th, 2018 was billed
for a total of $39,137.50. The option to renew this contract on July 1st, 2018 for a 7 month term will
incur a total of $53,121.83.
For any remaining questions or concerns, please do not hesitate to e-mail your Account Manager. My
contact information is below.
Rob Jones, City of Tukwila Account Manager
Rob.jones@gartner.com
253-256-9431
3
4
City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
CONTRACT FOR SERVICES
Contract Number:
This Agreement is entered into by and between the City of Tukwila, Washington, a non -charter
optional municipal code city hereinafter referred to as "the City," and Gartner, Inc. , hereinafter
referred to as "the Contractor," whose principal office is located at
56 Top Gallant Rd, Stamford, CT 06902
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 contained, the parties
hereto agree as follows:
1. Scope and Schedule of Services to be Performed by Contractor. The Contractor shall perform
those services described on Exhibit A attached hereto and incorporated herein by this reference as if
fully set forth. In performing such services, the Contractor shall at all times comply with all Federal,
State, and local statutes, rules and ordinances applicable to the performance of such services and the
handling of any funds used in connection 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 rate and method set forth on Exhibit B attached hereto and incorporated herein by
this reference. The total amount to be paid shall not exceed 92259.33+tax at a rate of N/A .
3. Contractor Budget. The Contractor shall apply the funds received under this Agreement within the
maximum limits set forth in this Agreement. The Contractor shall request prior approval from the
City whenever the Contractor desires to amend its budget in any way.
4. Duration of Agreement. This Agreement shall be in full force and effect for a period commencing
July 1st , 2018 , and ending January 31st , 2019 , unless sooner terminated under the
provisions hereinafter specified.
5. Independent Contractor. Contractor and City agree that Contractor 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
Contractor nor any employee of Contractor shall be entitled to any benefits accorded City employees by
virtue of the services provided under this Agreement. The City shall not be responsible for
withholding or otherwise deducting federal income tax or social security or contributing to the State
Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the
Contractor, or any employee of the Contractor.
CA Revised December 2016 Page 1 of 4
5
6. Indemnification. The Contractor shall defend, indemnify and hold the Public Entity, its officers,
officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or
suits including attorney fees, arising out of or in connection with the performance of this Agreement,
except for injuries and damages caused by the sole negligence of the Public Entity.
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 Contractor and the Public
Entity, its officers, officials, employees, and volunteers, the Contractor's liability hereunder shall be
only to the extent of the Contractor's negligence. It is further specifically and expressly understood
that the indemnification provided herein constitutes the Contractor'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.
7. Insurance. The Contractor 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 Contractor, their agents, representatives,
employees or subcontractors. Contractor's maintenance of insurance, its scope of coverage and
limits as required herein shall not be construed to limit the liability of the Contractor 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 Scope of Insurance. Contractor 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 $1,000,000 each occurrence,
$2,000,000 general aggregate and $2,000,000 products -completed operations aggregate
limit. Commercial General Liability insurance shall be as least at broad as ISO occurrence
form CG 00 01 and shall cover liability arising from premises, operations, independent
contractors, products -completed operations, stop gap liability, personal injury and advertising
injury, and liability assumed under an insured contract. The Commercial General Liability
insurance shall be endorsed to provide a per project general aggregate limit using ISO form
CG 25 03 05 09 or an equivalent endorsement. There shall be no exclusion for liability
arising from explosion, collapse or underground 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 ISO Additional Insured endorsement CG
20 10 10 01 and Additional Insured -Completed Operations endorsement CG 20 37 10 01 or
substitute endorsements providing at least as broad coverage.
3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of
Washington.
CA Revised December 2016 Page 2 of 4
6
B. Other Insurance Provision. The Contractor'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 Contractor's insurance and shall not contribute with
it.
C. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best
rating of not less than A: VII.
D. Verification of Coverage. Contractor 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 Contractor shall furnish certified copies of all required
insurance policies, including endorsements, required in this Agreement and evidence of all
subcontractors' coverage.
E. Subcontractors. The Contractor shall have sole responsibility for determining the insurance
coverage and limits required, if any, to be obtained by subcontractors, which determination shall
be made in accordance with reasonable and prudent business practices.
F. Notice of Cancellation. The Contractor shall provide the City and all Additional Insureds for this
work 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 Contractor 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 Contractor 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 Contractor from the City.
8. Record Keeping and Reporting.
A. 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. These records shall be maintained for a period of seven (7) 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.
9. 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.
10. Termination. This Agreement may at any time be terminated by the City giving to the Contractor
thirty (30) days written notice of the City's intention to terminate the same. Failure to provide
products on schedule may result in contract termination. If the Contractor's insurance coverage is
canceled for any reason, the City shall have the right to terminate this Agreement immediately.
11. 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.
CA Revised December 2016 Page 3 of 4
7
12. 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.
13. 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.
14. 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.
15. 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.
16. 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.
DATED this day of , 20_
CITY OF TUKWILA CONTRACTOR
Allan Ekberg, Mayor
ATTEST/AUTHENTICATED:
By:
Printed Name and Title: Rob Jones --Account Exect
Address: Seattle, WA 98121
City Clerk, Christy O'Flaherty Seattle, WA 98121
APPROVED AS TO FORM:
Office of the City Attorney
CA Revised December 2016 Page 4 of 4
8
Gartner
Exhibit A
Client Initials:
SERVICE DESCRIPTION
Attachment to the Service Agreement
EXECUTIVE PROGRAMS MEMBER
Executive Programs Member (the "Service") is designed for the most senior technology executive in the
organization, typically the CIO. This Service provides the client with (i) an ongoing advisory relationship
with Gartner and (ii) a thinking partner to contextualize Gartner insights.
DELIVERABLES
Client may designate one (1) Licensed User, referred to herein as "Member," who may access the
Deliverables listed below.
• Assigned Service Delivery Team
• Value Reviews
• Access to Analysts
• Symposium/ITxpo® with Executive
Programs VIP access
• Executive Programs Events
• Peer Networking
• Gartner for IT Leaders Research and Related
Content
• IT Key Metrics Data
• Executive Programs Research and Related
Content
• Talking Technology Series
ADDITIONAL DEFINITIONS OF DELIVERABLES
1. Assigned Service Delivery Team
An Executive Partner with past experience in senior technology executive roles and an Executive Client
Manager will serve as the Member's primary points of contact. They will help define and develop
individualized strategies based on their priorities and initiatives ("Member Agenda"). The Member may
interact on a monthly basis with the Executive Partner and Gartner to ensure ongoing engagement and
delivery of value. Interactions may include: Strategy Meetings, analyst interactions, local events,
Symposium attendance, peer networking interactions, or Executive Partner teleconferences or
meetings.
Strategy Meetings between the Member and by invitation of the Member, one or more of the Member's
peers (typically the CEO, CFO, CXO, et al.), and the Executive Partner may be to review and apply
Executive Programs Research, the annual Executive Programs CIO Agenda, or other relevant content,
provide advice on issues of relevance to Member and/or to drive the Member Agenda.
2. Value Reviews
The Executive Partner will periodically conduct Value Reviews with the Member against the Member
Agenda.
3. Access to Analysts
Analyst Inquiry — Provides access to Gartner Analysts associated with this Service. Participation is
limited to the Gartner Analyst and the Member. Inquiry topic may be any area of Gartner -covered
Research so long as the purpose is to advance the Member Agenda.
Prioritized Analyst Scheduling — The Member is entitled to prioritized scheduling for Analyst Inquiry
and 1 -on -1 sessions at Symposium/ITxpo.
4. Events
Attendance at Symposium/ITxpo — One (1) complimentary, nontransferable invitation to attend
Gartner Symposium/ITxpo, including standard Symposium entitlements plus Executive Programs VIP
access.
Service Description: Executive Programs Member, Version 4.0, April 2017 — Page 1 of 2
9
Gartner.
Client Initials:
Executive Programs Events — Complimentary, nontransferable invitation to attend local content -
based Gartner Executive Programs Events, including regional CIO Leadership Forums, where
available.
As part of the registration process, you will receive access to Gartner Events Terms & Conditions
containing legal disclosures specific to your Event experience.
5. Peer Networking
Peer Directory — Access to searchable directory of senior technology leaders and CEOs.
Online Forums — Access to virtual discussions of common issues among peers on gartner.com,
including a private forum exclusive for Executive Programs Members and Leaders.
Offline Meetups — Access to designated program lounges at Symposium
Facilitated Networking — Executive Partner will, upon request, arrange meetings or conference calls
with peers around a specific topic to discuss best practices or areas of expertise.
6. Gartner for IT Leaders Research and Related Content — Includes Gartner Core IT and Role -specific
Research; diagnostic tools, templates, and case studies; Weekly Picks and News Analysis; and webinars
featuring Gartner Analysts.
7. IT Key Metrics Data — Provides performance metrics on trends in IT spending and staffing, unit costs,
and performance measures across critical IT domains.
8. Executive Programs Research and Related Content
Research Reports — Up to 12 (twelve) Reports per year, covering Gartner -selected topics on areas
where business and IT intersect (Schedules are approximations and are dependent on the publication
schedule of relevant Research). Includes associated tools and teleconferences hosted by Executive
Programs Research Report authors to discuss topics of their Research Reports.
Business Research and Related Content — Targeted to CIOs, CFOs, and other business executives.
9. Talking Technology Series — Analyst commentaries on the latest IT topics in a monthly audio program
that can be accessed via gartner.com or downloaded to an MP3 device.
ADDITIONAL TERMS & CONDITIONS
Use of the Service is governed by the Gartner Usage Policy (formerly known as the Usage Guidelines for
Gartner Services) and the Gartner Copyright and Quote Policy, which are accessible on the Policies section
of gartner.com.
Service Description: Executive Programs Member, Version 4.0, April 2017 — Page 2 of 2
10
Exhibit -B
Gartner, Inc. Service Agreement for CITY OF TUKWILA ("Client")
This Service Agreement ("SA") is between Gartner, Inc. of 56 Top Gallant Road, Stamford, CT 06904 ("Gartner") and Client of 6300 Southcenter
Blvd, Tukwila, WA 98188-2544. ("Client"), and includes the Master Client Agreement (T05 -TSD -329) between Gartner and Client or Client's
parent or affiliate dated MAY -2005 the terms of which are incorporated by reference, and all applicable Service Descriptions. This SA constitutes
the complete agreement between Gartner and Client. Client agrees to subscribe to the following Services for the term and fees set forth below.
1. DEFINITIONS AND ORDER SCHEDULE:
Services are the subscription -based research and related services.pitrehased by Client in the Order Schedule below and described in the Service
Descriptions. Service Names and Levels of Access are defined in the. Service Descriptions. Gartner may periodically update the names and the
deliverables for each Service. If Client adds Services or upgrades the level of service or access, an additional Service Agreement will be
required. -
Service Descriptions describe each Service purchased, specify the deliverables for each Service, and set forth any additional terms unique to a
specific Service. Service Descriptions for the Services purchased in this SA may be viewed and downloaded through the hyperlinks listed in
Section 2 below or may be attached to this SA in hard copy, and are incorporated by reference into this SA.
Service Name
Level of Access
Ouantitv
Name of User
Contract
Contract
Annual Fee
Total Fee
Term Start
Term End
to be Licensed
Date
Date
USD
USD
—
Executive
Programs
Member
1
Joseph Todd
01 -JAN -2018
30 -JUN -2018
$78,275.00
$39,137.50
Term Total
(Excluding
applicable
taxes)
$39,137.50
Total Services:
(Excluding
applicable
taxes)
539,137.50
The pricing above is for purchase of more than one license resulting in an annualized saving of $9,847.00 which is a promotional price available
to this Client on a one-time only basis. If additional licenses are not purchased by Client with any subsequent renewal, the pricing of the
Executive Programs shall be at the then current single -user license price.
2. SERVICE DESCRIPTIONS:
Service Name/ Level of Access
Service Description URL
Executive Programs Member
http://sd.gartner.com/sd en member.pdf
3. PAYMENT TERMS
Gartner will invoice Client annually in advance for all Services. Payment is due 30 days from the invoice date. Client shall pay any sales, use,
value-added, or other tax or charge imposed or assessed by any governmental entity upon the sale, use or receipt of Services, with the exception of
any taxes imposed on the net income of Gartner.
Please attach any required Purchase Order ("PO") to this SA and enter the PO number below. If an annual PO is required for multi-year contracts,
Client will issue the new PO at least 30 days prior to the beginning of each subsequent contract year. Any pre-printed or additional contract terms
included on the PO shall be inapplicable and of no force or effect. All PO's are to be sent to purchaseorders a,gartner.com. This SA may be
signed in counterparts.
Gartner, Inc. - Service Agreement for use with a Master Client Agreement - Version 04/16 - Page 1 of 2
11
4. CLIENT BILLING INFORMATION
Purchase Order Number Billing Address
Invoice Recipient Name
5. AUTHORIZATION
Client:
CITY OF TUKWILA
Invoice Recipient Email Invoice Recipient Tel. No.
Gartner, Inc.
Signature/Date Signature/Date
Print Name and Title Print Name and Title
IF USING A DIGITAL SIGNATURE,
PLEASE CONFIRM THE FOLLOWING
AS A CONDITION OF CONTRACT
EXECUTION:
[ ] By ticking this box, I agree that by affixing
my digital signature hereunder I am attesting
that: (i) this is my own personal legal
signature; and (ii) I am a duly authorized
signatory for my company. My signature
verifies that the information provided to
Gartner hereunder is subscribed by me, under
penalty of false statement and material breach
of contract.
12
Gartner, Inc. - Service Agreement for use with a Master Client Agreement - Version 04/16 - Page 2 of 2
Exhibit B •
Gartner, Inc. Service Agreement for CITY OF TUKWILA ("Client")
This Service Agreement (`'SA") is between Gartner, Inc. of 56 Top Gallant Road, Stamford, CT 06904 ("Gartner") on behalf of itself and all
wholly-owned affiliates of Gartner, Inc. and Client of 6300 Southcenter Blvd, Tukwila, WA 98188-2544. ("Client"), and includes the Master
Client Agreement (Washington State Master Contract No. 05712) between Gartner and Client or Client's parent or affiliate dated MAR -2018 the
terms of which are incorporated by reference, and all applicable Service Descriptions. This SA constitutes the complete agreement between
Gartner and Client. Client agrees to subscribe to the following Services for the term and fees set forth below.
1. DEFINITIONS AND ORDER SCHEDULE:
Services are the subscription -based research and related services purchased by Client in the Order Schedule below and described in the Service
Descriptions. Service Names and Levels of Access are defined in the Service Descriptions. Gartner may periodically update the names and the
deliverables for each Service. If Client adds Services or upgrades the level of service or access, an additional Service Agreement will be
required.
Service Descriptions describe each Service purchased, specify the deliverables for each Service, and set forth any additional terms unique to a
specific Service. Service Descriptions for the Services purchased in this SA may be viewed and downloaded through the hyperlinks listed in
Section 2 below or may be attached to this SA in hard copy, and are incorporated by reference into this SA.
Service Name
Level of Access
Quantity
Name of User
Contract
Contract
Annual Fee
Total Fee
Term Start
Term End
to be Licensed
Date
USD
USDDate
Executive
Programs
Member
1
Joseph Todd
01-JUL-2018
31 -JAN -2019
Term Total
(Excluding
applicable
taxes)
$53,121.83
Total Services:
(Excluding
applicable
taxes)
$53,121.83
Continuation of services beyond the current contract term end date listed above will require a minimum contract term of 12 months, as per
standard licensing policy.
2. SERVICE DESCRIPTIONS:
Service Name/ Level of Access
Service Description URL
Executive Programs Member
http://sd.gartner.com/sd ep member.pdf
3. PAYMENT TERMS
Gartner will invoice Client annually in advance for all Services. Payment is due 30 days from the invoice date. Client shall pay any sales, use,
value-added, or other tax or charge imposed or assessed by any governmental entity upon the sale, use or receipt of Services, with the exception of
any taxes imposed on the net income of Gartner.
Please attach any required Purchase Order ("PO") to this SA and enter the PO number below. If an annual PO is required for multi-year contracts,
Client will issue the new PO at least 30 days prior to the beginning of each subsequent contract year. Any pre-printed or additional contract terms
included on the PO shall be inapplicable and of no force or effect. All PO's are to be sent to purchaseorders@gartner.com. This SA may be
signed in counterparts.
Gartner. Inc. - Service Agreement for use with a Master Client Agreement - Version 02/18 - Page 1 of 2
13
4. CLIENT BILLING INFORMATION
Purchase Order Number Billing Address
Invoice Recipient Name Invoice Recipient Email Invoice Recipient Tel. No.
5. AUTHORIZATION
Client: Gartner, Inc.
CITY OF TUKWILA
Signature/Date Signature/Date
Print Name and Title Print Name and Title
IF USING A DIGITAL SIGNATURE,
PLEASE CONFIRM THE FOLLOWING
AS A CONDITION OF CONTRACT
EXECUTION:
[ ] By ticking this box, I agree that by affixing
my digital signature hereunder I am attesting
that: (i) this is my own personal legal
signature; and (ii) I am a duly authorized
signatory for my company. My signature
verifies that the information provided to
Gartner hereunder is subscribed by me, under
penalty of false statement and material breach
of contract.
14
Gartner, inc. - Service Agreement for use with a Master Client Agreement - Version 02/18 - Page 2 of 2
Washington MCA and the City of Tukwila
Exhibit C
The purpose of this document is to state that the City of Tukwila is included in the Washington State
Master Client Agreement number T05 -TSD -329 for Information Technology Research and Advisory
Services. This agreement was signed between the State of Washington Department of Information
Services and Gartner, Inc. and can be found by following the link below.
Original MCA
https://fortress.wa.gov/es/apps/contracting/05712c.pdf
Contract Summary
https://fortress.wa.gov/es/apps/ContractSearch/ContractSu mmary.aspx?c=05712
For any remaining questions or concerns, please do not hesitate to e-mail your Account Manager. My
contact information is below.
Rob Jones, City of Tukwila Account Manager
Rob.jones@gartner.com
253-256-9431
15
16
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Peggy McCarthy
BY: Vicky Carlsen, Deputy Finance Director, and Mia Navarro, Community
Engagement Manager
CC: Mayor Ekberg
DATE: 06/21/2018
SUBJECT: Strategic Plan and Priority Based Budgeting
ISSUE
This memo provides an update on the implementation of Priority Based Budgeting, and
recommended changes to the City's Strategic Plan for use in developing the 2019-2020 budget.
BACKGROUND
The City is implementing a new budgeting method called Priority Based Budgeting. Each
department has drafted a list of programs, and have almost completed allocating their 2017-18
expenditure budget to these programs as a practice run. The next step in Priority Based
Budgeting is to score the programs against the City's goals identified in the adopted Strategic
Plan. Staff has done outreach to the community to see if the Strategic Plan still reflects the
Community's priorities and values. The outreach included an online survey, print surveys
distributed to the City's Boards & Commissions, community groups, the Foster High School
civics classes (71), the Community Connectors, and other opportunities, as well as a community
dinner and workshop on May 3rd at Thorndyke Elementary School attended by around 50
people. The survey was translated into Spanish, Somali, Burmese, Nepali, Vietnamese, and
Amharic. The City also offered an online survey to staff as well.
DISCUSSION
Strategic Plan:
The following is a summary of the survey feedback from the community and from staff.
1. What has been accomplished since 2012? Accomplishments that constituents and
staff are proud of include improvements to roads and sidewalks, the new library, Tukwila
Village, general improvements to Tukwila International Boulevard, and adding residential
development to the Southcenter business district.
2. What does our community still need to work on? Constituents report that the City still
has work to do with regard to safety, projecting a positive image, ensuring that Tukwila
residents can get basic needs met—affordable housing being at the top of the list—and
community outreach and engagement.
3. What do you like about the Plan? What is important to you that the City should
consider when developing the budget? For the most part, constituents agree with the
vision, mission, goals and objectives laid out in the 2012 Strategic Plan, and that the City
should keep working toward the aspirational vision of being "The City of Opportunity, the
Community of Choice."
17
INFORMATIONAL MEMO
Page 2
4. What would you change about the Plan? What's missing? Important items that the
community and staff have identified as missing from the Strategic Plan in its current
form, are:
a. Equity, particularly with regard to race
b. Addressing gentrification and displacement
c. Health and environmental health
d. Infrastructure
e. Technology and innovation
Priority Based Budgeting and 2019-2020 Budget Process:
The priority based budget model will be implemented over the next few budget cycles. For the
2019-2020 biennium, it is anticipated that all departments will have identified programs and will
allocate the 2019 and 2020 budgets to those programs. Additionally, programs will be scored
against an established set of attributes that will allow the City to place programs in tiers based
on how they score against the attributes.
The attributes that are being recommended to score programs are attributes that are used by
most of the organizations the Center for Priority Based Budgeting contracts with. By using the
same attributes that other organizations use will provide another tool to evaluate our own
programs against other like cities with similar programs.
Departments will be presenting departmental and fund budgets to Council committees
beginning in August. It is anticipated that budget information presented during the committee
meetings will include, not only the traditional budget information, but will also include budgets
allocated to programs as well as the scoring results. Staff is still on track to meet the committee
review schedule presented to the Finance Committee at its April 3, 2018 meeting, copied below:
Committee Date Departments/Funds
Finance 8/7/18 Council
Transp, Infra 8/13/18 Public Works, Street
CDN 8/14/18 Land Acquisition & Park Fund, DCD
Public Safety 8/20/18 Court, Fire Impact Fee, Public Safety Plan, PW Shops funds
Finance 8/21/18 HR, Self -Insurance, LEOFF 1
Transp, Infra 8/27/18 Residential Street, Arterial Street
CDN 8/28/18 Recreation, Parks
Public Safety 9/4/18 Police, Drug Seizure
Finance 9/5/18 Finance, Contingency Fund, Debt Service, Urban Renewal, General Government
Transp, infra 9/10/18 Fleet
CDN 9/11/18 Golf Course
Public Safety 9/17/18 Fire, Firemen's Pension
Finance 9/18/18 Mayor, TIS
Transp, Infra 9/24/18 Water, Sewer, Surface Water
CON 9/25/18 Lodging Tax
Each department will score their own programs. A cross -departmental workgroup will then
review the scoring down by departments. A final review of program scoring will be done by
Administration.
1 8 W:12018 Info Memos\Strategic Plan and PBB.doc
INFORMATIONAL MEMO
Page 3
RECOMMENDATION
The Council is being asked to approve changes to the Strategic Plan and the recommended
attributes for scoring via a motion. Staff requests that the recommended changes go before the
Committee of the Whole for discussion on July 9th, and that the motion be presented for a vote
at the July 16th regular meeting.
ATTACHMENTS
Strategic Plan Recommended Changes for PBB
Draft attributes for program scoring
W.12018 Info Memos\Strategic Plan and PBB.doc
19
20
City of Tukwila Strategic Plan 2012
Recommended Changes
GOAL ONE A Community of Inviting Neighborhoods & Vibrant Business Districts
A. Cultivate community ownership of shared spaces.
1. Expand the system of incentives, tools, and supports that encourage investment in and
maintenance of private and public spaces. Improve enforcement of the City's regulations.
2. Ensure City -owned properties meet the community's desired look and feel. Encourage partners to
maintain their properties to similar standards.
3. Explore ways to use public art to beautify and enrich the community.
4. Reduce commercial activity that is not compatible with residential neighborhoods as opportunities
arise.
B. Build a broad and collaborative approach to preventing crime and increasing the sense of safety.
1. Engage all City departments in reducing crime.
2. Use environmental design principles to improve public safety.
3. Engage businesses and residents in preventing crime and preparing for emergencies.
— Over time, broaden the focus of this engagement to other community -building efforts.
— Explore opportunities to engage visitors in crime prevention and crime reporting.
— Improve relationships between the City and immigrant communities around public safety.
4. Partner with social service organizations and explore regional solutions to prevent crime.
— Review case data to identify frequent violators and coordinate with service providers to resolve
issues.
C. Focus City planning and investments on creating a connected, dynamic urban environment.
1. Prioritize changes that promote public safety, encourage the active use of space, and facilitate foot
and bike access.
— Make smart investments to support the desired environment, including sidewalk, trail, street,
and lighting improvements to support biking and walking as funding and other factors allow.
— Identify appropriate parks to be made safer for all users by reducing vegetation to improve
visibility, allowing other parks to have more native landscaping.
— Advance implementation of the City Walk & Roll Plan.
2. Explore creative ways to increase transit, foot, and bicycle access to community amenities, stores,
and jobs.
3. Work with the community to identify desirable retail opportunities in residential neighborhoods.
D. Use City efforts and investments to realize established visions for specific sub -areas.
1. Implement the community -led vision for the Tukwila International Boulevard neighborhood.
2. Work with businesses to finalize and implement the City's Southcenter Plan.
3. Continue to support the development of Tukwila South.
21
4. Tailor land use codes for the specific circumstances of individual subdistricts rather than applying
one set of codes citywide.
5. Identify public and private infrastructure investments that will be needed to support the long-term
vision for specific areas of the City.
— Use multi -department teams in long-term planning efforts to establish shared goals and target
City investments in catalytic projects.
E. Build and maintain public infrastructure that supports a healthy and attractive built and natural
environment.
1. Ensure that all neighborhoods and business districts have the necessary utilities, roads, bridges,
sidewalks, and other infrastructure to thrive.
2. Ensure that all public infrastructure in the City supports a healthy and attractive natural
environment.
GOAL TWO A Solid Foundation for All Tukwila Residents
A. Partner with organizations that help meet the basic needs of all residents.
1. Continue to advocate for vulnerable populations and increase understanding of the challenges they
face.
2. Actively collaborate with service providers supporting basic needs, including housing, food, health
care, education, employment and job readiness.
3. Be a regional leader in efforts to increase housing security and meeting the needs of a dynamic
community.
Explore opportunities for supporting cooperative and alternative housing for transitioning and
recent refugees.
B. Strive for excellent education, vocational supports, and personal growth opportunities through
effective partnerships and City services.
C. Encourage maintenance, improvements, and diversity in the City's housing stock.
D. Work to eliminate systemic barriers and provide equitable access to opportunities and services as
outlined in the City's Equity Policy.
GOAL THREE A Diverse & Regionally Competitive Economy
A. Embrace the City's economic potential and strengthen the City's role as a regional business and
employment center.
1. Establish and implement an economic development strategy that identifies ambitious goals and
leverages the efforts of all City departments to strengthen the City's economy.
2. Employ a business -friendly approach to regulation while protecting the long-term interest of
neighborhoods and businesses districts.
3. Strengthen the City's image as an economic hub, promoting Tukwila's businesses and the City as a
good place to do business.
4. Promote understanding of the interdependencies and mutual interests among Tukwila residents,
Tukwila businesses, and the City of Tukwila.
B. Strengthen the City's engagement and partnership with the business community.
1. Improve the City's ability to have two-way communication with Tukwila businesses.
22
2. Cultivate business participation in strengthening and promoting the Tukwila community.
C. Encourage development, maintenance, improvements, and diversity in the City's stock of business
space.
1. Promote the availability of quality business space options at all price points to support business
diversity and ensure that businesses of all sizes can and want to remain in Tukwila.
GOAL FOUR A High -Performing & Effective Organization
A. Use Tukwila's Vision, Mission, and Strategic Plan to focus and prioritize City efforts.
1. Align City efforts and priorities around the Strategic Plan, including Council goal -setting, the City's
regular budgeting processes, and department -level workplanning.
Create a results -oriented customer service culture focused on achieving the City's Mission.
Establish an annual process for reviewing progress and establishing new action plans for
implementing the community aspirations set by this Strategic Plan.
— Establish City of Tukwila Values or Guiding Principles to shape organizational culture and guide
decision-making.
2. Track and report progress on meeting Strategic Plan Goals to City staff, residents, businesses, and
other interested parties.
— Identify performance measures by department and establish tools and schedules for reviewing,
sharing, and learning from progress.
3. Improve communication and strengthen relationships up, down, and across the organization.
B. Advance Tukwila's interests through participation in regional partnerships.
1. Encourage broad participation of City staff and elected officials in regional partnerships.
2. Be a regional leader in building common goals with our local and regional partners to achieve the
greatest possible results.
C. Continue to innovate and develop as an organization, and support individual growth.
1. Encourage employee leadership throughout the organization. Engage and leverage the full
abilities of each employee.
2. Establish a culture and mechanisms to support ongoing growth and learning as an organization.
3. Seek innovative opportunities to improve public service.
D. Ensure City facilities are safe, efficient, and inviting to the public.
E. Ensure the long-term fiscal sustainability of the City.
1. Promote shared staff and community understanding of the City's fiscal position. Share information
about significant revenue and cost factors, as well as the rationale for decision-making.
2. Focus City expenditures on community priorities and maximize efficiencies in service delivery.
Evaluate City services and service delivery models relative to the City's Mission, Strategic Plan,
fiscal outlook, and ongoing input from the community.
Establish policies and processes to adopt technology that improves City services and makes
them more efficient.
Explore opportunities for regional partnerships and regional service delivery models that are
fiscally beneficial to the City and in line with community values.
Encourage future development in locations where existing infrastructure can absorb the
growth.
23
3. Increase City revenues to support quality services for the whole community.
Aggressively pursue opportunities to grow the City's business tax base through economic
development.
Explore options to increase revenues for the provision of City services or facilities for the
benefit of our residents, businesses, and visitors through mechanisms that are fair and
appropriate.
GOAL FIVE A Positive Community Identity & Image
A. Improve the City's ability to build trust and work with all members of the Tukwila community.
1. Broaden the City's toolkit to include new technology and formats that enable two-way
communication and improve business processes.
2. Strengthen the City's ability to engage with communities that do not participate in traditional
formats.
- Adopt engagement strategies that bring City staff and decision makers out into the
communities they serve to engage in meaningful dialogue.
- Cultivate meaningful, long-term relationships with members of the City's communities.
- Expand the linguistic and cultural competencies of City staff through training and hiring.
3. Cultivate participation by Tukwila's many communities in the City's decision-making processes.
B. Facilitate connections among Tukwila's communities.
1. Build connections among the many communities that make up the broader Tukwila community.
2. Improve broad understanding and appreciation of all of the City's cultures.
C. Promote a positive identity and image of Tukwila.
1. Take a proactive role in generating positive media coverage of the community.
— Promote the City's amenities, cultural dynamism, and geographic location.
— Shift negative perceptions about crime in Tukwila.
2. Implement a long-term, scalable community branding effort.
- Establish common themes that promote Tukwila's many positive attributes.
- Expand community markers at City boundaries and at key points throughout the community,
establishing a clear community signature.
- Use public art that is representative of the City's diverse communities in the branding effort.
3. Promote Tukwila's international diversity as a strength and draw for regional visitors.
— Support neighborhood businesses in reaching new markets through improved facades, way -
finding banners, and common promotions.
- Explore opportunities for establishing a neighborhood business district organization to provide
ongoing support for small businesses operating within a defined geographic area.
- Explore opportunities to establish a shopping and dining destination, similar to Seattle's Pike
Place Market or International District.
24
Basic
Program
Attribute
Mandated to
Provide the Program
Reliance on the
City/Organization to
Provide the
Program
Change in Demand
for Program
Cost Recovery of
the Program
Portion of the
Community/
Organization
Served
Brief I
explanation
Programs that are mandated by
another level of government (i.e.
federal, state or county) will receive
a higher score for this attribute
compared to programs that are
mandated solely by the City or have
no mandate whatsoever
Programs for which residents,
businesses and visitors can look only
to the City to obtain the service will
receive a higher score for this
attribute compared to programs
that may be similarly obtained from
another intergovernmental agency
or a private business
Programs demonstrating an increase
in demand or utilization will receive a
higher score for this attribute
compared to programs that show no
growth in demand for the program.
Programs demonstrating a decrease
in demand or utilization will actually
receive a negative score for this
Programs that demonstrate the
ability to "pay for themselves"
through user fees,
intergovernmental grants or
other user-based charges for
services will receive a higher score
for this attribute compared to
programs that generate limited
Programs that benefit or serve a
larger segment of the City's
residents, businesses and/or
visitors will receive a higher score
for this attribute compared to
programs that benefit or serve
only a small segment of these
populations
attribute
or no funding to cover their cost
4
Required by Fede?at, State,
or County Legislation
City is the sole provider of
the program and there are
no other public or private
entities that provide this
type of servic =' -
Pr- iia`r3f aiperiencing a
SUBSTANTIAL increase (or
score of -4 for decrease) in
- demand of 25% or more
fees geerated COM7r1Vogram
100% of the cost to
provide the program
_
benefits/serves
the ENTIRE
community/organization-
100%
3
Required by City Code or
Resolution
City is currently the sole
provider of the program, but
there are other public or
private entities that could be
contracted to provide a
similar service
Programs experiencing a
SIGNIFICANT increase (or
score of -3 for decrease) in
demand of 15-24%
Fees generated cover 50-
74% of the cost to provide
the program
Program benefits/serves a
SUBSTANTIAL portion of
the
community/organization-
>75%
2
Required to fulfill executed
franchise or contractual
agreement
Program is also offered by
another governmental, non-
profit, or civic agency
Program experiencing a
MODEST increase in demand
of 5-14% (or -2 for decrease)
Fees generated cover 25-
49% of the cost to provide
the program
Program benefits/serves a
SIGNIFICANT portion of
the
community/organization-
>50%
1
Recommended by national
Program is offered by other
Program experiencing
Fees generated cover 1-
Program benefits/serves
professional organization
private businesses, but none
are located within city limits
MINIMAL increase in demand
of 1-4% (or -1 for decrease)
24% of the cost to provide
the program
SOME portion of the
community/organization-
>10%
0
No requirement or Mandate
Exists
Program is also offered by
other private businesses
located within the City limits
Program experiencing NO
change in demand
No fees are generated that
cover the cost to provide
the program
Program benefits/serves a
SMALL portion of the
community/organization-
<10%
N
0)
Community Scoring Criteria
Governance Scoring Criteria
A Community of Inviting
Neighborhoods & Vibrant
Business Districts
A Solid Foundation for All
Tukwila Residents
A Diverse & Regionally
Competitive Economy
A Positive Community
Identity & Image
A High -Performing and
Effective Organization
Cultivate community ownership
of shared spaces
Partner with organizations that
help meet the basic needs of all
residents.
Embrace the City's economic
potential and strengthen the
City's role as a regional business
and employment center
Improve the City's ability to
build trust and work with all
members of the Tukwila
community
Use Tukwila's Vision, Mission, and
Strategic Plan to focus and
prioritize City efforts
Build a broad and collaborative
approach to preventing crime
and increasing the sense of
safety
Strive for excellent education,
vocational supports, and
personal growth opportunities
through effective partnerships
and City services
Strengthen the City's
engagement and partnership
with the business community
Facilitate connections among
Tukwila's communities
Advance Tukwila's interests
through participation in regional
partnerships
Focus City planning and
investments on creating a
connected, dynamic urban
environment
Encourage maintenance,
improvements, and diversity in
the City's housing stock
Encourage development,
maintenance, improvements,
and diversity in the City's stock
of commercial space
Promote a positive identity
and image of Tukwila
Continue to innovate and develop
as an organization, and support
individual growth
Use City efforts and investments
to realize established visions for
specific sub -areas
Work to eliminate systemic
barriers and provide equitable
access to opportunities and
services as outlined in the City's
Equity Policy
Ensure City facilities are safe,
efficient, and inviting to the public.
Build and maintain public
infrastructure that supports a
healthy and attractive built and
natural environment
Ensure the long-term fiscal
sustainability of the City
N
CO
Scoring Processes:
Community focused programs:
All community programs (those that serve the public- Police patrol, elections, courts, etc.) are scored against all 5 Basic Program Attributes
as well as the 4 Community "Results" or "Goals". Community results scoring is based on the "degree" at which a program impacts your
community's ability to provide the goal or result, as defined by the additional supporting definitions. The scoring criteria for all scoring is on a 0-4
grading scale, 0 meaning the program has no bearing on achieving the result- i.e. a program of "Parks Maintenance" may score well against most
goals, but may score a 0 or 1 against the goal: "A Diverse and Regionally Competitive Economy"
Governance focused programs:
All governance programs are scored against the 5 Basic Program Attributes as well as the supporting measures for the goal: "A High
Performing and Effective Organization." We treat these supporting measures as independent goals as independent so as to ensure each
governance program is scored against enough valid data to ensure clear ranking of all programs.
How do we Rank Programs?
After the departments score, we will kick off the "Peer Review" process. The Peer Review scores will be considered the final scores for the
generation of the "Quartile Ranks". The combined scores from the Results/Goals paired with the Basic Program Attributes will then be tabulated
and normalized to a 100 pt scale. Results/Goals will make up the majority (75%) of a program's total score, while Basic Program Attributes will
contribute to the final 25%. After this calculation, we use the median score and standard deviation to calculate the Quartiles.
30
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Stephanie Brown, Human Resources Director
CC: Mayor Allan Ekberg
DATE: June 27, 2018
SUBJECT: Review of Compensation Policy Resolution No. 1796
Note: Because this topic is building on previous Committee meetings, the original memo has
been updated in underline font below. This intent is to continue to preserve the information from
one meeting to the next given that each discussion will build upon the previous.
ISSUE
The City Council and Administration have committed to review and discuss Resolution No. 1796, which
sets policy for compensation and benefits for City employees.
BACKGROUND
Beginning in the 1980's, the City Council adopted various resolutions regarding compensation policy.
These resolutions focused on several common themes including:
1) An overarching goal to maintain a competitive position in the market place;
2) The desire to select and to retain a competent and productive work force;
3) The compensation system should reflect average compensation among the various employment
markets in which the City competes for qualified labor;
4) Provides that classifications shall be based upon the Decision Band Method (DBM), for the
represented and non -represented employees;
5) A comparative analysis for all positions shall be determined based upon internal and external
factors;
6) A mix of wages and benefits shall be provided based on the average or above average of the
defined market.
These resolutions have since been updated and replaced over time, with many of these provisions carrying
forward over the years.
In 2013, Resolution No, 1796, was adopted which sets core value statements, specifically that the City
desires to utilize standardized policies, procedures and processes whenever possible for compensating all
employee groups, both non -represented and represented.
From the Human Resources perspective, since the adoption of this policy in 2013, it has been effectively
used as a guide and serves to establish criteria for use when conducting analysis for salary and benefits. In
the Collective Bargaining process, it has been objective; manageable, fair, representative of the market to
which you chose to compare; used in good faith under our bargaining statue RCW 41.56; reduces the
comparisons to those groups that are represented; sets parameters for pay and benefit considerations; it
guides the pre -collective bargaining process as to what the City expects to receive for consideration in
preparation for labor negotiations.
31
INFORMATIONAL MEMO
Page 2
As it relates to the classification of new positions and the reclassification of existing positions, it provides
the external market criteria based upon assessed valuation +/- 50% that we have been able to benchmark
our positions to fairly consistently; provides consideration for internal comparability; identifies the data
collection resources to use when conducting external market analysis; sets parameters for when a market
study will be conducted and when a cost of living adjustment will be considered.
The challenges we have experienced have generally been when we have positions that we are not able to
find benchmark comparators for based upon the duties of the position (standard for a valid match is 5
positions). In addition, recently when the market for a certain position was highly competitive, we were
not able to attract qualified applicants.
During these times we look for creative, innovative and strategic ways to attract qualified applicants such
as offering hiring bonuses. This has also been an effective recruitment strategy with our Civil Service
positions.
Given that some areas of Resolution No. 1796 are silent, addressing those silent areas would provide
more clarity and an objective methodology to use for anomalies that may occur. Administration proposes
consideration of the following for discussion with the Council. This list is not all inclusive as there could
be other items the Council wants to consider.
1. Above and Below Market adjustments - specifically define what compensation standard would be used
to set parameters for adjustment of wages when positions are above or below market.
2. Compression — establish a definition within the resolution that defines what it means, and what
methodology will be used to address compression when it occurs.
3. Comparability — review the current methodology specifically as it applies to the external market for
non -represented positions.
4. Recruitment — review what barriers exist when it is a highly competitive external market, and ways to
attract and retain future employees.
Follow Up from the March 20, Finance Committee Meeting
At the March 20, Finance Committee meeting, Committee members requested the following components
be included in the analysis and review
• An updated market study;
• Input and recommendations from the non -represented employee groups;
• Background and evaluation of decision band methodology;
• Analysis on gender neutrality, desk audits, and appeal process, performance reviews and
Merit pay;
• Understanding of compression and when it has been an issue.
In addition, the Council committee requested that Administration provide a revised timeline for review
and adoption of changes to Resolution No. 1796 by the full City Council: The schedule below meets the
Council requests for a compensation workshop for the Council and for a deadline of September.
32 Z:ICouncil Agenda Items Human Resources IFinanceCommitteecompreviewmemo 3-14-18 -Update 6-27-18 sb.docx
INFORMATIONAL MEMO
Page 3
May 22 -
June (TBD)
July 3
July 17 -
August 7 -
August 21 -
September 4 -
September 10 -
September 17 -
Review the revised timeline with the Committee and address any additional
considerations to Resolution 1796;
Conduct a compensation workshop for the City Council
Committee discussion:
review Compensation workshop and next steps
review non -represented employee input
Review and discuss 2017 data of the external market study
Finalize scope of policy review of Resolution1796
Review and discuss updated 2018 data for the external market study
(Note AWC 2018 Data results are published end of July)
Review and discuss committee considerations
Review and discuss committee considerations (if necessary)
Finalize recommendations for City Council consideration
Bring recommendations to the City Council for review and discussion;
Adoption of changes to Resolution No. 1796 for implementation
NEW: Update from Compensation Work Session- 6/19/18
A work session was held with the City Council on June 19. Mr. Bruce Lawson, Compensation
Consultant from Gallagher Benefit Services, Inc provided a presentation on Methods of Job Evaluation
Alternatives, How to Determine Salaries. The purpose of this work session was to provide background
on compensation philosophies to new Council members and to receive feedback from the full Council to
inform the Finance Committee's ongoing review of the City's compensation policy as established by
Resolution No. 1796.
The presentation covered the follow objectives:
• The history of job evaluation
• The role of job evaluation
• Selecting a job evaluation tool
• Alternative job evaluation approaches
o Whole Job Ranking
o Market Pricing
o Point Factor
o Factor Comparison
o Decision Band
• Market Premiums
• Pay Compression
• Market Competitiveness
The consultant reviewed with the City Council the process used to evaluate jobs under whole job ranking,
market pricing, point factor, factor comparison, and the Decision Band Method the current system used
by the City. Job Evaluation under the Decision Band Method is based upon six broad band decisions. Mr.
Lawson explained that the advantage of this type of evaluation method is to determine job content, and to
create a hierarchy of jobs for internal equity, and of skill, effort, responsibility and working conditions.
Z: Council Agenda Items\Human Resources\FinanceCommitteecompreviewmemo 3-14-18 -Update 6-27-18 sb.docx
33
INFORMATIONAL MEMO
Page 4
In addition, Mr. Lawson addressed the issue of nay compression, when it occurs, and that compression
cannot be totally mitigated. He added that pay compression can be managed by the ratio percentage
allocated in the pay structure. He concluded the presentation with discussion on when a market premium
is appropriate to implement, specifically when you want to attract and retain jobs that are competitive in
the labor market. Given the current construction climate occurring in this region and that it is hard to
attract positions such as Building and Construction Inspectors, he suggested it may be a good option.
Mr, Lawson reviewed with the Council the definitions of market competitiveness and that is occurs when
your external market data reflects when your pay is highly competitive, possibly misaligned; or
significantly misaligned requiring review to determine if the job evaluation is appropriate.
Councilmember Quinn lead the discussion of the review and discussion of Resolution No. 1796
requesting input from the City Council. Council members have reauested that the Finance Committee
consider and discuss COLA and market adjustments: compression; positions above and below market,
and new incentives.
At the Finance Committee meeting on July 5. the committee will review non -represented employee input.
the external market study data for 2017, and next steps for further review of Resolution No. y1796.
34 Z:1Council Agenda Items Human Resources\FinanceCommitteecompreviewmemo 3-14-18 -Update 6-27-18 sb.docx
Tukwila Job Title
DBM Band/Grade
City P&R
Administrator PW Director Police Chief Director
F102 E91 E91 E83
A/V Cities 2017 Monthly Wage Top Step
Burien
13750
12971
12971
Des Moines
14280
11162
12556
11610
Edmonds
13267
13843
12556
Issaquah
16070
14574
14574
13882
Lake Stevens
13046
11296
12336
Lynnwood
14636
14842
14636
Marysville
16052
13878
13878
13364
Maple Valley
13149
11722
11722
Puyallup
13411
12150
13411
11007
SeaTac
14044
12731
12731
Shoreline
15819
13095
13095
Tukwila 2017 Monthly Wage
Average of Top Wage Step (excudes
Tukwla)
Dollar Difference
Percentage Difference
12866
14402 12862 13634 12757
-283 4 -768 -326
-1.97%
0.03% -5.63% -2.56%
In determining the level of competiveness against the market:
+/-5% is Highly Competitive
+/-10% is competitive
+1-15% is a Possible Misalignment with the Market
=1-20% is a Significant Misalignment with the Market
Blank cell = no match in position with that City or no data available
Cities chosen based on +/-50% of Tukwila's Assessed Valuation utilizing 2017 Washington State Department of RevE
35
2017
Deputy Public
Works
Human
Deputy Director/City Deputy Finance Building Resources Deputy City Administrative
Police Chief Engineer Director Official Analyst Clerk Assistant
E82 D72 D63 D61 C42 B23 B23
12081
11288
12308 11440 10241 9614 7134 6180 5487
-227 -152 80 182 1117 234 560
-1.85% -1.33%
0.78% 1.89% 15.66% 3.78% 10.20%
?nue data Table 30
36
10911
9409
5203
12075
10650
9105
6204
5517
11958
10330
9838
6991
5462
5806
10878
7728
7075
5238
11075
8330
5894
5174
13208
13187
11880
10800
6708
5361
12150
10495
9067
7269
5980
6595
5825
12150
11564
9491
9034
6394
6086
5513
11252
9010
9945
7964
6699
5777
9737
7421
6399
5797
12081
11288
12308 11440 10241 9614 7134 6180 5487
-227 -152 80 182 1117 234 560
-1.85% -1.33%
0.78% 1.89% 15.66% 3.78% 10.20%
?nue data Table 30
36
Regression Results: All Data Included
City of Tukwilla
2017 Market Data Regression Results
$16,000
$14,000 —~^w,
� m^ ,,~~
.��~��'
$12.000
�
'$1U.0O0
To .,.^`'
un ~'
7-0
$8,000 ^,'
�G~~
~~,~~..�
O00 | it... '''
' / ww
Gallagher
y = 1.1555x + 2977.2
R2 = 0.9859
$4,000
$2,000
B23 C42 D61 D63 D72 E82 E83 E91 F10
DBMO Rating
37
Summary of Findings
Gallagher
Insurance I Risk Management I C.ortsu@krg
Overall regression results, regardless of what data was excluded or
included based on the previous slides, resulted in an R2 > 0.98
— The results indicate that the data variability is low and therefore utilizing the
resulting formula to create the pay structure would result in a valid and reliable
structure that is aligned with the market.
Once the proposed structure is developed utilizing the resulting formula,
any variance of +/-15% from the market data would warrant further review
to determine if a market premium is appropriate
- The variance may be acceptable for a variety of reasons:
Internal value of the position versus the value the market places on the job
Variance in responsibilities between the City's role and the typical role in the market (jobs matched
from other organizations are rarely a 100% and therefore variance may occur
What is the variance in data in the market? If there is wide disparity that would indicate that there
may be issues with the market data
Has there been difficulty in retaining or recruiting for the job? If so, a market premium may be
warranted
38
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Peggy McCarthy, Finance Director
CC: Mayor Ekberg
DATE: June 25, 2018
SUBJECT: Sales Tax and Miscellaneous Revenue Report -1st Quarter 2018
Schedule I - Sales Tax
in $1,000's
First quarter sales tax collections increased by $33 thousand or 1% over the same period in 2017.
Construction sales tax increased $50 thousand or 15% and other industries decreased by $17
thousand.
39
2017 Actual
2018 Actual
YOY Change
j j
j j
j
i
Other
---- Month ----
! Other !
Total
! Other !
Total
Construction !
Industries ! Total
Collect-
Construct i
Construct j
i i
0/0
ed Recd
tion Industries ;
tion � Industries ;
Amount % ;Amount % ; Amount
,
Jan Mar
$ 123 j $ 1,149 j
$ 1,272
$ 116 j $ 1,222 j
$ 1,339
$ (6) -5%j
$ 73 6%i $ 67
5%
Feb Apr
83 j 1,123 j
1,206
128 j 1,210 j
1,338
45 54%j
87 8%i 132
11%
Mar May
120 i 1,664
1,784
131 1,487
1,618
11 9%i
(177) -11% (166)
-9%
Q-1 Totals
$ 326 ; 3,936 ;
$ 4,262
$ 375 ; 3,919 ;
$ 4,295
$ 50 15%;
(17) 0%; $ 33
1%
Apr Jun
May Jul
90! 1,317 !
103 ! 1,318 !
1,408
1,421
- -
- -
-
-
-
-
-
- -
Jun Aug
116 ! 1,391 !
1,506
- -
-
-
- I -
Q-2 Totals
$ 309 j 4,026 i
$ 4,335
$ - -
$ -
$ -
- i $ -
Jul Sep
130 j 1,377 i
1,508
- -
-
-
- i -
Aug Oct
125 1,345
1,471
- j - j
-
- i
- i -
Sep Nov
140 1,473
1,613
-
Q-3 Totals
$ 396 ; 4,196 ;
$ 4,591
$ - - ;
$ -
$ -
- ; $ -
Oct Dec
145 , 1,329 ,
1,473
- i
i
Nov Jan
110 ! 1,424 !
1,534
- -
-
-
- -
Dec Feb
120 ! 1,849 !
1,969
- j -
-
-
- -
Q-4 Totals
$ 374 j 4,602 i
$ 4,976
$ - j -
$ -
$ -
- i $ -
Totals
$ 1,404 j 16,760 j
$ 18,164
$ 375 j 3,919 j
$ 4,295
$ 50 i
(17) i $ 33
First quarter sales tax collections increased by $33 thousand or 1% over the same period in 2017.
Construction sales tax increased $50 thousand or 15% and other industries decreased by $17
thousand.
39
INFORMATIONAL MEMO
Page 2
Budget to Actual - Sales Tax in $1,000's
Schedule I - Sales Tax
Actual sales tax collected in the first quarter was $382 thousand less than anticipated,
representing an 8% negative variance from budget. The results are consistent with the sales tax
performance against budget experienced in 2017. Based on the first quarter results, it appears
the 2018 budget for sales tax revenue will not be met.
40 W:\FIN Projects\Sales Tax Information12018\Info Memo Sales Tax-2018-Q1.docx
-- Month --
Collected Rec'd
2017
2018
Variance
Actual
Allocated
Budget
Actual
Amt
%
Jan
Mar
$ 1,272
$ 1,396
$ 1,339
(57)
-4%
Feb
Apr
1,206
$ 1,323
$ 1,338
15
1%
Mar
May
1,784
$ 1,958
$ 1,618
(340)
-17%
0-1 Totals
$ 4,262
$ 4,677
$ 4,295
$(382)
-8%
Apr
Jun
1,408
$ 1,545
-
-
May
Jul
1,421
$ 1,559
-
-
Jun
Aug
1,506
$ 1,653
-
-
Q-2 Totals
$ 4,335
$ 4,757
$ -
$ -
Jul
Sep
1,508
$ 1,654
-
-
Aug
Oct
1,471
$ 1,614
-
-
Sep
Nov
1,613
$ 1,770
-
-
Q-3 Totals
$ 4,591
$ 5,038
$ -
$ -
Oct
Dec
1,473
$ 1,617
-
-
Nov
Jan
1,534
$ 1,683
-
-
Dec
Feb
1,969
$ 2,161
-
-
Q-4 Totals
$ 4,976
$ 5,461
$ -
$ -
Totals $ 18,164 $ 19,932
$ 4,295 $(382)
-2%
Actual sales tax collected in the first quarter was $382 thousand less than anticipated,
representing an 8% negative variance from budget. The results are consistent with the sales tax
performance against budget experienced in 2017. Based on the first quarter results, it appears
the 2018 budget for sales tax revenue will not be met.
40 W:\FIN Projects\Sales Tax Information12018\Info Memo Sales Tax-2018-Q1.docx
INFORMATIONAL MEMO
Page 3
Below is a graph of the year-to-date changes in sales tax collections by industry type year over
year.
$150,000
$100,000
$50,000
$(50,000)
$(100,000)
$(150,000)
$(200,000)
$(250,000)
Change YTD by Category*
All industry categories show an increase in sales tax except for automotive, with a $23 thousand
decline, and miscellaneous with a $220 thousand decline. The miscellaneous category contains
sales tax from periodic and one time type transactions. If this decline were factored out of the
year over year change, sales tax for 1st quarter 2018 would have shown an increase of over $250
thousand. In comparison, if the 1st quarter 2017 increase in the miscellaneous category were
factored out of the year over year change, sales tax for 1st quarter 2017 would have shown a
decline of $59 thousand. In comparison, 1st quarter 2018 exhibits a more promising and positive
trend in ongoing sales tax collections. Some of the increase experienced in 2018 may be due to
the change in state legislation effective January 1, 2018 that subjects more online sales to sales
tax collection. See the excerpt below from news cni awcnet.orq, June 21, 2018.
"On June 21st, the Supreme Court of the United States released an opinion that allows states to collect
sales tax on goods sold from remote out-of-state sellers. The opinion reverses the physical presence
standard set in prior cases. The decision will likely have limited impact in the State of Washington.
However, this ruling affirms the Washington State Legislature's bipartisan actions in 2017 that resulted
in more than $400 million to state and local governments thus far. EHB 2163 directed the Department
of Revenue (DOR) to work with remote out-of-state companies to comply with remitting sales tax or
provide information on purchasers for remitting use tax. DOR began collecting sales tax from remote out-
of-state sellers in 2018."
W:1FIN Projects\Sales Tax Information120181Info Memo Sales Tax-2018-Q1.docx
41
Retail Trade
Services
$86,555
Construction
$49,316
WholesaleTrade
$44.,802
$84,191
Manufacturing
$10,790
MM
Transportation
/Warehousing
$1,217
Automotive
$(23,416)
Miscellaneous
111(11(2,1
All industry categories show an increase in sales tax except for automotive, with a $23 thousand
decline, and miscellaneous with a $220 thousand decline. The miscellaneous category contains
sales tax from periodic and one time type transactions. If this decline were factored out of the
year over year change, sales tax for 1st quarter 2018 would have shown an increase of over $250
thousand. In comparison, if the 1st quarter 2017 increase in the miscellaneous category were
factored out of the year over year change, sales tax for 1st quarter 2017 would have shown a
decline of $59 thousand. In comparison, 1st quarter 2018 exhibits a more promising and positive
trend in ongoing sales tax collections. Some of the increase experienced in 2018 may be due to
the change in state legislation effective January 1, 2018 that subjects more online sales to sales
tax collection. See the excerpt below from news cni awcnet.orq, June 21, 2018.
"On June 21st, the Supreme Court of the United States released an opinion that allows states to collect
sales tax on goods sold from remote out-of-state sellers. The opinion reverses the physical presence
standard set in prior cases. The decision will likely have limited impact in the State of Washington.
However, this ruling affirms the Washington State Legislature's bipartisan actions in 2017 that resulted
in more than $400 million to state and local governments thus far. EHB 2163 directed the Department
of Revenue (DOR) to work with remote out-of-state companies to comply with remitting sales tax or
provide information on purchasers for remitting use tax. DOR began collecting sales tax from remote out-
of-state sellers in 2018."
W:1FIN Projects\Sales Tax Information120181Info Memo Sales Tax-2018-Q1.docx
41
INFORMATIONAL MEMO
Page 4
Schedule II shows year-to-date sales tax collections from the top ten industry classifications.
Schedule II
YTD YTD Dollar
Group Name Current Prior Diff. Diff.
722 Food Services, Drinking Places $ 473,018 $ 436,557 $ 36,461 8.35%
452 General Merchandise Stores $ 455,541 $ 453,426 $ 2,115 0.47%
448 Clothing and Accessories $ 444,860 $ 420,321 $ 24,539 5.84%
443 Electronics and Appliances $ 268,175 $ 271,010 $ (2,835) -1.05%
423 Wholesale Trade, Durable Goods $ 261,090 $ 218,958 $ 42,132 19.24%
236 Construction of Buildings $ 257,085 $ 184,318 $ 72,767 39.48%
541 Professional, Scientific, Tech $ 193,198 $ 113,979 $ 79,219 69.50%
453 Miscellaneous Store Retailers $ 182,668 $ 166,266 $ 16,402 9.86%
444 Building Material and Garden $ 173,136 $ 160,425 $ 12,711 7.92%
517 Telecommunications $ 169,757 $ 155,761 $ 13,996 8.99%
722 -Food Services, Drinking Places has risen to the top of the list with 452 -General Merchandise
Stores and 448 - Clothing and Accessories a close second and third respectively. In comparison,
for 1st quarter 2017, the top industry categories were 452 -General Merchandise Stores, 722 -Food
Services, Drinking Places and 448 -Clothing and Accessories. For 1st quarter 2016, the top
industrycategories were 452 -General Merchandise Stores, 448 -Clothing and Accessories, and
722 -Food Services, Drinking Places. Category 722 -Food Services, Drinking Places has moved
from third highest sales tax collections in 2016 to highest sales tax collections in 2018.
42 W:1FIN Projects\Sales Tax Information120181Info Memo Sales Tax-2018-Q1.docx
INFORMATIONAL MEMO
Page 5
Schedule Ill shows the year-to-date ten largest declines in sales tax collections by dollar
difference by industry collected.
Schedule Ill
YTD YTD Dollar
Group Name Current Prior Diff. Diff.
999 Nonclassifiable Establishments $ 47,951 $ 268,240 $ (220,289) -82.12%
441 Motor Vehicle and Parts Dealer $ 145,985 $ 171,570 $ (25,586) -14.91%
238 Specialty Trade Contractors $ 107,058 $ 125,720 $ (18,662) -14.84%
621 Ambulatory Health Care Service $ 21,757 $ 35,451 $ (13,693) -38.63%
532 Rental and Leasing Services $ 143,648 $ 157,335 $ (13,687) -8.70%
926 Economic Programs Admin $ 5,050 $ 18,615 $ (13,566) -72.87%
488 Transportation Support $ 7,894 $ 13,822 $ (5,928) -42.89%
713 Amusement, Gambling, and Rec $ 52,783 $ 58,213 $ (5,430) -9.33%
237 Heavy and Civil Construction $ 10,984 $ 15,774 $ (4,790) -30.36%
515 Broadcasting (except Internet) $ 1,301 $ 5,876 $ (4,576) -77.86%
The largest decline was in the 999-Nonclassifiable Establishments industry category (also
referred to as the miscellaneous category). No trend was detected by comparing the information
above with the ten largest declines for 1St quarter 2017 and 2016. However, category 621 -
Ambulatory Health Care Services appears above and on the 1st quarter 2017 list and category
441 -Motor Vehicle and Parts Dealer appears above and on the 1St quarter 2016 list.
W:1FIN Projects\Sales Tax Information120181Info Memo Sales Tax-2018-Q1.docx
43
W:\FIN Projects\Sales Tax Information120181Info Memo Sales Tax-2018-Q1.docx
SALES TAX SUMMARY
1st Quarter 2018 (Received in March 2018 - May 2018)
NAICS CONSTRUCTION
236 Construction of Buildings
237 Heavy & Civil Construction
238 Specialty Trade Contractors
TOTAL CONSTRUCTION
17 TOTAL
844,136
107,260
462,376
$ 1,413,773 $
Overall Construction Change from Previous Year
MANUFACTURING
17 TOTAL
17 YTD
184,318
15,774
125,720
325,812 $
311 Food Manufacturing 10,703
312 Beverage & Tobacco Products 11,960
313 Textile Mills 409
314 Textile Product Mills 14,792
315 Apparel Manufacturing 888
316 Leather & Allied Products 88
321 Wood Product Manufacturing 3,740
322 Paper Manufacturing 24,646
323 Printing & Related Support 28,490
324 Petroleum & Coal Products 41
325 Chemical Manufacturing -15,834
326 Plastic & Rubber Products 3,955
327 Nonmetallic Mineral Products 5,081
331 Primary Metal Manufacturing 1,803
332 Fabricated Metal Mfg Products 8,752
333 Machinery Manufacturing 6,300
334 Computer& Electronic Products 10,531
335 Electric Equipment, Appliances 3,949
336 Transportation Equipment Mfg 29,297
337 Furniture & Related Products 8,432
339 Miscellaneous Manufacturing 19,765
TOTAL MANUFACTURING $ 177,788 $
Overall Manufacturing Change from Previous Year
17YTD
1,932
4,477
130
3,579
242
8
469
6,276
6,539
4
1,494
1,093
726
266
3,840
1,386
2,955
2,796
8,895
1,417
3,795
52,318
TRANSPORTATION & WAREHOUSING 17 TOTAL 17 YTD
481
482
483
484
485
487
488
491
492
493
Air Transportation
Rail Transportation
Water Transportation
Truck Transportation
Transit and Ground Passengers
Scenic and Sightseeing Tran
Transportation Support
Postal Services
11
169
86
1,852
395
57
47,071
816
Couriers & Messengers 1,600
Warehousing & Storage 1,878
TOTAL TRANSP & WHSING $ 53,936 $
Overall Transportation Change from Previous Year
WHOLESALE TRADE
17 TOTAL
11
94
21
379
53
15
13,822
226
361
375
15,356 $ 16,573
$1,217 7.9%
18 YTD
257,085
10,984
107,058
375,128
$49,316 15.1%
YTD
% Diff
39.5%
-30.4%
-14.8%
YTD
18 YTD % Diff
1,944
2,830
61
3,383
15
12
384
6,852
6,333
29
1,514
852
830
469
1,922
2,814
3,671
799
17,875
2,281
8,239
$ 63,108
$10, 790
18 YTD
0
13
3
528
221
6,366
7,894
126
882
541
0.6%
-36.8%
-53.4%
-5.5%
-94.0%
51.4%
-17.9%
9.2%
-3.1%
598.6%
1.3%
-22.1%
14.3%
76.6%
-49.9%
103.1%
24.3%
-71.4%
100.9%
61.0%
117.1%
20.6%
YTD
% Diff
0.0%
-86.5%
-87.6%
39.3%
319.3%
42971.3%
-42.9%
-44.2%
144.3%
44.3%
YTD
17 YTD 18 YTD % Diff
423 Whls Trade -Durable Goods
424 Wills Trade -Nondurable Goods
425 Wholesale Electronic Markets
1,018,477
155,695
2,696
WHOLESALE TRADE TOTAL $ 1,176,868 $
Overall Wholesale Change from Previous Year
NAICS
441
447
NAICS
442
443
444
445
446
448
451
452
453
454
AUTOMOTIVE
Motor Vehicle & Parts Dealer
Gasoline Stations
TOTAL AUTOMOTIVE
17 TOTAL
709,541
91,039
$ 800,581 $
Overall Automotive Change from Previous Year
RETAIL TRADE
Furniture & Home Fumishings
Electronics & Appliances
Building Material & Garden
Food & Beverage Stores
Health & Personal Care
Clothing & Accessories
Sporting Goods, Hobby, Books
General Merchandise Stores
Miscellaneous Store Retailers
Nonstore Retailers
TOTAL RETAIL TRADE
17 TOTAL
445,454
1,168,189
805,251
257,762
298,682
2,066,870
533,560
2,131,267
738,487
248,748
$ 8,694,271 $
Overall General Retail Change from Previous Year
SERVICES
17 YTD
171,570
20,418
191,988
17 YTD
106,163
271,010
160,425
54,826
68,870
420,321
109,225
453,426
166,266
37,237
1,847,767
17 TOTAL 17 YTD
51X Information
52X Finance & Insurance
53X Real Estate, Rental, Leasing
541 Professional, Scientific, Tech
551 Company Management
56X Admin, Supp, Remed Svcs
611 Educational Services
62X Health Care Social Assistance
71X Arts & Entertainment
72X Accommodation & Food Svcs
81X Other Services
92X Public Administration
TOTAL SERVICES
820,832
106,045
623,983
547,039
9
170,046
10,355
119,513
256,620
2,536,470
270,882
87,143
$ 5,548,937 $
Overall Services Change from Previous Year
MISCELLANEOUS
17 TOTAL
198,303
21,668
166,237
113,979
0
37,529
1,508
43,895
64,720
571,704
63,656
20,925
1,304,124 $ 1,390,679
18 YTD
145,985
22,588
$ 168,572
($23,416)
18YTD
106,867
268,175
173,136
62,957
69,432
444,860
127,637
455,541
182,668
40,691
$ 1,931,964
$84,197
18 YTD
203,572
23,197
150,394
193,198
1
54,566
1,608
30,165
59,057
605,789
62,117
7.017
000
111-115
211-221
999
Unknown
Agriculture, Forestry, Fishing
Mining & Utilities
Unclassifiable Establishments
MISCELLANEOUS TOTAL
0
1,089
547
296,439
$ 298,074 $
Overall Miscellaneous Change from Previous Year
17 YTD
0
80
102
268,240
268,422
YTD
% Diff
-14.9%
10.6%
-12.2%
% Diff
0.7%
-1.0%
7.9%
14.8%
0.8%
5.8%
16.9%
0.5%
9.9%
9.3%
4.6%
YTD
% Diff
2.7%
7.1%
-9.5%
69.5%
0.0%
45.4%
6.6%
-31.3%
-8.7%
6.0%
-2.4%
-66.5%
$86,555 6.6%
YTD
18 YTD % Diff
0
61
115
47,951
$ 48,127
($220,295)
0.0%
-23.4%
12.5%
-82.1%
-82.1%
218,958 261,090 19.2% YTD
36,601 39,266 7.3% 17 TOTAL 17 YTD % Diff
624 628 0.7% GRAND TOTALS $18,164,227 $4,261,971 $4,295,137
18 YTD
256,183 $ 300,985 Grand Total Change from Previous Year $33,166 0.78%
$44,802 17.5% Grand Total Change from Previous Year - Without New Construction ($16,150) -0.41%
INFORMATIONAL MEMO
Page 6
Schedule IV shows quarterly gambling tax performance year over year and for the current year
compared to budget.
Schedule IV - Gambling Tax (a)
(d) 2018
Quarter 2017 2018 Allocated
Earned Actual Actual Budget
INCREASE (DECREASE)
YEAR OVER YEAR BUDGET VARIANCE
Amount % Amount
Q1 $ 977,003 $ 985,901 $ 995,831
Q2 983,322 1,002,272
Q3 951,991 970,337
Q4 958,503 976,974
$ 8,898 1% $ (9,930) -1%
Totals $ 3,870,819 $ 985,901 $ 3,945,414
$ 8,898 -75% $ (9,930) -75%
Gambling tax revenue was 1% more than the same period last year and 1% less than budget.
The City now has four casinos - the Riverside Inn, the Great American, the Fortune (formerly the
Golden Nugget) and the Macau. Gambing tax is budgeted to increase by 2% over 2017 actual
revenue.
Schedule V shows quarterly admissions tax performance year over year and for the current year
compared to budget.
Schedule V - Admissions Tax (b)
(d) 2018
Quarter 2017 2018 Allocated
Earned Actual Actual Budget
INCREASE (DECREASE)
YEAR OVER YEAR BUDGET VARIANCE
Amount % Amount
Q1 $ 166,003 $ 206,037 $ 176,211
Q2 157,574 167,263
Q3 177,422 188,331
Q4 171,641 182,195
$ 40,034 24% $ 29,826 17%
Totals $ 672,640 $ 206,037 $ 714,000
$ 40,034 -69% $ 29,826 -71%
First quarter admissions tax revenue was $40 thousand, or 24% more than the same period last
year. The year over year increase also represents a favorable budget variance of $30 thousand
or 17%. A major contributor to the increase is a new entertainment venue in the Central Business
District. Admissions tax is budgeted to increase 6% over 2017 actual revenue.
Schedule VI shows quarterly telecommunications utility tax performance year over year and for
the current year compared to budget.
Schedule VI - Telecommunications Utility Tax (c)
(d) 2018
Quarter 2017 2018 Allocated
Earned Actual Actual Budget
INCREASE (DECREASE)
YEAR OVER YEAR BUDGET VARIANCE
Amount % Amount cyo
Q1 $ 323,708 $ 393,366 $ 319,585
Q2 312,456 308,476
Q3 388,433 383,486
Q4 316,497 312,466
$ 69,658 22% $ 73,781 23%
Totals $ 1,341,094 $ 393,366 $ 1,324,013
$ 69,658 -71% $ 73,781 -70%
First quarter telecommunications utility tax was $70 thousand, or 22% more than previous year
and $74 thousand more than budget. The 2018 revenue is budgeted at 1% less than 2017 actual
revenue.
(a)
(b)
(c)
(d)
Gambling tax currently includes card games, punch boards, pull tabs, and amusement games.
Excludes golf course admissions tax.
Telecommunications Utility tax currently includes cellular, pager and telephone usage.
Actuals reflected in Schedules IV, V and VI are amounts earned for the quarter.
W:1FIN Projects\Sales Tax Information120181Info Memo Sales Tax-2018-Q1.docx
45
46
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Peggy McCarthy, Finance Director
CC: Mayor Ekberg
DATE: June 25, 2018
SUBJECT: Finance the Public Works Shops portion of the Public Safety Plan
ISSUE
Review the Schedule of Events for issuance of up to $20 million limited tax general obligation bonds
for the acquisition of property and construction of improvements for new Public Works shops,
pursuant the Public Safety Plan.
BACKGROUND
On December 4, 2017, the City Council approved bond ordinance 2559 for the issuance of up to $20
million of limited tax general obligation (LTGO) bonds for financing the acquisition of property for the
Public Works shops and to pay for improvements and associated costs. In February 2018 through
May 2018, the City Council Finance Committee reviewed and considered several financing options
and project scope alternatives for the Public Safety Plan, including the Public Works shops. On June
11, 2018, a City Council workshop was held to discuss the selected financing options and scope
alternatives, and at the regular City Council meeting on June 18, 2018, the City Council authorized
the administration to move forward with the Public Safety Plan scenario referred to as D-20. Under
this scenario, $30 million is appropriated for Public Works shops property acquisition and
improvements, with financing to be accomplished through limited tax general obligation bonds with
maximum terms of 20 years.
DISCUSSION
The City is in the process of acquiring three parcels to site the new Public Works Shops. Through
May 2018, $7.4 million has been expended on behalf of the Public Works shop project, including a
February deposit to the court under the eminent domain laws. On May 25, 2018, the court entered
an order adjudicating the issue of public use and necessity allowing property acquisition to move
forward. The bond proceeds will be used to complete the property purchases, reimburse the City for
project expenditures previously incurred, and construct Public Works shops improvements. The
bond sale is scheduled for July 31, 2018 and the bond closing for August 14, 2018.
RECOMMENDATION
For information only
ATTACHMENTS
Bond Issuance Schedule of Events
47
49
pfm
City of Tukwila, Washington
Limited Tax General Obligation Bonds, 2018
As of June 15, 2018
JUNE
TWT
TWT... -F
1 2 1 2 3 4 5 6 7
3 4 5 6 7 8 9 8 9 10 11 12 13 14
10 11 12 13 14 15 16 15 16 17 18 19 20 21
17 18 19 20 21 22 23 22 23 24 25 26 27 28
24 25 26 27 28 29 30 29 30 31
1
5 6 7 8
12 13 14 15
19 20 21 22
26 27 28 29
City Finance Director/City Manager/Staff: City
Pacifica Law Group LLP (Bond Counsel). BC
PFM Financial Advisors LLC (Financial Advisor): PFM
References to "All Parties" includes City, BC, and PFM
2
9
16
23
30
3 4
10 11
17 18
24 25
31
Date Event
Responsibility
12/4 • City Council approves Bond
6/12-13 • FOMC Meeting
6/15 • Current draft of POS distributed
6/21 • Comments provided on draft POS
6/27 • Revised draft POS distributed
6/28 • Draft rating materials distributed
6/30 • Publication of the City's 2017 Audited Financial Statements
7/2 • Comments provided on draft POS
7/3 • Comments provided on draft rating materials
7/4 • Independence Day
[7/6] • Rating agency prep call/meeting
7/6 • Revised draft POS distributed
By 7/9 • Final rating materials distributed
[7/10] • Bond rating agency call
[7/13] • Due diligence call to review POS
7/16 • Final comments provided on POS
7/19 • POS distributed for final sign -off
7/23 • Final sign -off on POS provided
By 7/23 • Receive bond rating
7/24 • POS posted
[7/31] • Bond sale
7/31-8/1 • FOMC Meeting
8/3 • OS distributed for final sign -off
8/7 • Final sign-off/OS posted
8/14 • Bond Closing
PFM
All Parties
PFM
PFM
City
City
City/PFM
PFM
PFM
City/PFM
All Parties
All Parties
PFM
All Parties
PFM
All Parties
PFM
All Parties
All Parties
49
51