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HomeMy WebLinkAboutFIN 2018-10-16 COMPLETE AGENDA PACKETCity of Tukwila Finance Committee • De'Sean Quinn, Chair .0 Dennis Robertson 0 Kate Kruller AGENDA TUESDAY, OCTOBER 16,2018— 5:30 PM HAZELNUT CONFERENCE ROOM (At east entrance of City Hall) Distribution: D. Quinn D. Robertson K. Kruller V. Seal K. Hougardy T. McLeod Z. Idan Mayor Ekberg D. Cline R. Bianchi C. O'Flaherty L. Humphrey Item Recommended Action Page I. PRESENTATION(S) 2. BUSINESS AGENDA a. Purchase of new cashiering system and related software. a. Forward to 10/22 C.O.W. Pg.1 Peggy McCarthy, Finance Director and 11/5 Regular Mtg. b. An ordinance regarding the gambling tax. b. Forward to 10/22 C.O.W. Pg.5 Vicky Carlsen, Deputy Finance Director and 11/5 Regular Mtg. c. A resolution increasing business license fees. C. Forward to 10/22 C.O.W. Pg.15 Vicky Carlsen, Deputy Finance Director and 11/5 Regular Mtg. d. A resolution regarding the compensation policy for d. Forward to 10/22 C.O.W. Pg.21 City employees, and 11/5 Regular Mtg. David Cline, City Administrator e. An amendment to a contract with the Prothman e. Forward to 11/5 Regular Pg.43 Company. Mtg. Consent Rachel Bianchi, Deputy City Administrator f. An amendment to a contract with Cabot Dow and f. Forward to 11/5 Regular Pg.47 Associates. Mtg. Consent Rachel Bianchi; Deputy City Administrator g. 2019-2020 Biennial Budget: g. Forward to 10/22 C.O.W. Pg.51 • Mayor's Office, for consensus. David Cline, City Administrator • Administrative Services / Funds 502 and 503 Rachel Bianchi, f)epuhj City Administrator 3. ANNOUNCEMENTS 4. MISCELLANEOUS Next Scheduled Meeting: Tuesday, November 6, 2018 6 The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerkftTukwilaWA.gov) for assistance. City f Tukwila Allan Ekberg, Mayor UNFOR ATUONAU -E ORANDU TO: Finance Committee FROM: Peggy McCarthy, Finance Director CC: Mayor Ekberg DATE: October 10, 2018 SUBJECT: Purchase New Cashiering System for Finance Department and City Clerk ISSUE Authorize the purchase of e new cashiering system for the Finance Department and the [>dy Clerk's office. BACKGROUND The point ofsale cashiering system used bvthe Finance Department and the City Clerk's office, Care Cashiering, was purchased and implemented in January 2009. almost ten years ago. In recent years, consideration has been given fUpurchasing a new cashiering system because the existing system functions slowly and system support and upgrades have been discontinued by the vendor. |nJune 2O18.the need for enew system beoanlennoneurg8nt' The Payment Card Industry 'PC|)standaPds became more stringent requiring a more secure encryption protocol — Transport Layer Security (TLG) 1.2 - effective June 30. 2018. Because the Core Cashiering system did not comply with this protocol, a work around was developed by the Qty'e T|S Department to achieve compliance. Under the T|S-dava|oped eo|UUoO` credit card transactions are processed using a two-step method. First, the credit card payment is processed using on online terminal. Next, the transaction is recorded into the 'Core Cashiering system by entering the last four digits of the credit cand, the credit card expiration date, and the transaction authorization number from the online credit card terminal. This solution solved the immediate problem but proved tobeavery time-consuming process. DISCUSSION The Tyler Technologies cashiering system has been identified as a more octinno| point of sale cashiering solution, one that will save time and create efficiencies in the Finance Department and the City Clerk's office. The system has been vetted bythe T|S department and the online demonstration was viewed by and received favorable responses from several Finance staff. The advantages ofthe new system include: 1. Credit card processing compliesvvith new PC|etandmrds TLS1.2 2. Integrated credit card processing which eliminates the two-step process currently being used 3. Quicker processing and better functionality in general resulting in more responsive customer service 4. Ongoing vendor support and upgrades 5. More direct/easier integration with the EDEN financial system O. Real time reoeipUng is retained for up-to-date customer account information 7. Site license supports unlimited cashiering stations within the City; currently contemplated for two cashiering stations in Finance and one cashiering station for the City Clerk's office 0. Integrates with K8uDis, the Tyler Technologies next generation financial software. (E[)EN, the Ciha'S'current financial softVxane., is a Tyler Technologies product) INFORMATIONAL MEMO Page 2 9. Maintenance fee savings of $4,775 annually; current fee is $10,535 and proposed fee is $5,760 annually. FINANCIAL IMPACT ITEM DESCRIPTION AMOUNT* Software site license $32,000 less $8,000 discount $24,000 Implementation cost 48 hrs @ $160/hr 7,680 Total software and implementation $31,680 Hardware — printer and hand-held scanner 3 printers @ $1,600 each = $4,800 3 scanners @ $385 each = $1,155 $5,955 Total Software, hardware and implementation $37,635 One-year maintenance $5,760 TOTAL COST $43,395 With the annual $4,775 savings in maintenance fees, the $37,635 system cost will be recovered in less than eight years. Should this purchase be authorized, staff will pursue a 2018 implementation date with Tyler Technologies. If Tyler Technologies cannot accommodate this timeframe and the system is implemented in 2019, a 2019 carryover budget amendment may be necessary. *exclusive of applicable sales or use tax. RECOMMENDATION The Council Committee is being asked to approve the purchase and consider this item at the October 22, 2018 Committee of the Whole meeting and subsequent November 5, 2018 Regular meeting. ATTACHMENTS "How to Prepare for the TLS1.2 Compliance Deadline in 2018" 2 https://www.centurybizsolutions.net/how-to-prepare-for-thertls-1-2-compliance-deadline-in-2018-11/ Is your business prepared for the TLS 1.2 compliance deadline in 2018? The PCI Security Standards Council is changing its security standards —businesses will no longer be able to use TLS 1.0 to secure credit card information. Merchants must upgrade to TLS 1.2 by June 30, 2018, or they won't be able to process credit card payments. TLS, also known as Transport Layer Security, is an encryption protocol that's part of the next wave of PCI compliance. The TLS changeover is replacing the TLS 1.0 security protocol that's out of date for today's payment security needs. TLS is used to establish a secure payment channel between two systems, which authenticates purchases and fully protects the credentials of all parties involved in the payment process. The current encryption standard, TLS 1.0, no longer meets minimum security requirements due to vulnerabilities in the protocol that cannot be fixed. TLS 1.0 and 1.1 have known security vulnerabilities that carry a significant risk of data breaches. TLS 1.2 provides extra layers of security to protect sensitive credit card information and keep business details safe from hackers. Merchants who upgrade will ensure that their payment systems are fully protected, but those who fail to follow through will risk exposing their systems to hackers and jeopardizing relationships with their customers. Merchants who upgrade to TLS 1.2 will have peace of mind in knowing that their sensitive data is safe and their profits are protected. If merchants neglect to make the switch to TLS 1.2, they won't be able to process payments and their business will be extremely vulnerable to data breaches, cyberattacks, and security 3 vulnerabilities. The updated TLG 1,2pn}t0CV| provides higher security standards to protect merchants from third -party hackers. Merchants are encouraged to migrate aSsoon as possible. Those who fail to upgrade to TLS1.2won't be able tVprocess credit card transactions starting July 1^2O1O.Toget LIP to date with the most current security protocol, merchants should consult a payment provider that ensures TLS 1.2 compatibility. 8incoTLS1,2onrnp|ianceiSr8qUiFedtOprncessp8ynnentsoftmrJUne3O.nnerChant5need to vvDrh with a certified p@VDleOt provider to verify that their software and hanjvVmna are up to date with the latest security requirements. Any type of security -related switch can come with some obstacles, so it's important to migrate as soon as possible to avoid missing the deadline. Merchants who don't upgrade to TiS 1-2 by Juno 30 ooUld See a serious decline in their revenue. Businesses that accept payments online are most susceptible to TLG vulnerabilities, In order to achieve TLS 1.2 cnnnpatibi|itv, merchants nh0U|d find a PC|-compliantpayn1ent gateway that provides TLS 12 compliance. A TLS 1.2-compatible payment gateway will provide optimal payment security and protect users from Vulnerabilities. Plus, PC| compliance lessens the liability for Your business in the event of a data breach. Using 8 payment gateway that COrObhles TLG 1.2SeCuhh/ with PC| compliance will provide the highest pDSsib|e|8ve|ofpaymeOtSecUhtvfn[bothbUsin8ssenandthei[CUStonl8[S. City of Tukwila Allan Ekberg, Mayor TO: INFOR ATIONAL E ORANDU Finance Committee FROM: Rachel Bianchi, Deputy City Administrator Vicky Carlsen, Deputy Finance Director BY: Aaron Williams, Fiscal Coordinator CC: Mayor Ekberg DATE: August 10, 2018 SUBJECT: Proposed increase to city's gambling activities tax Updated from September 5, 2018 Finance Committee meeting and September 10, 2018 Committee of the Whole meeting ISSUE The City Council is being asked to modify the Tukwila Municipal Code (TMC) to increase the gambling activities tax on cardrooms by 1%. BACKGROUND In 2011 the City Council adopted ordinance 2349, which set the most recent tax rates for gambling activities, which include bingo games, raffles, amusement games, punchboards, pull - tabs and cardrooms. The ordinance set a rate for each of these, with a three -tiered rate structure for tax rates associated with card rooms: • An initial rate of 10% • When more than five are open the rate moves to 15% • If more than six, the rate moves to 20% Currently, there are five -four cardrooms in Tukwila, resulting in a 10% tax on the gross receipts of each establishment. The City collected $3.8 million in gambling taxes in 2017. DISCUSSION The Administration proposes to raise the rate associated with cardrooms by 1%. Per the TMC, gambling taxes are used primarily for public safety. Public Safety accounts for more than 56% of the City's general fund. State law caps the tax on cardrooms at 20%. Jurisdictions in the county vary as to how they regulate and tax card rooms, and many ban such establishments all together. The City of Auburn has one of the lowest rates at 4%, and according to staff research, the City of Redmond has the highest at 12%. Both the City of Kent and King County levy the 11% rate. Staff estimates that a 1% increase in the tax levied on cardrooms would generate approximately $380,000 $350,000 in additional revenue in 2019. The City heads into the 2019/2020 budget process with the reality that projected revenues will not meet expenditures. The Administration has directed departments to reduce expenditures in the next biennium by 3% (except for Police and Fire, who were held at a 1.5% reduction), but additional resources are needed in order to provide the current level of City services. A small increase in the gambling tax is an opportunity to help align revenues with expenditures in the coming biennium. 5 INFORMATIONAL MEMO Page 2 Follow up after September 5.2Q18 Finance Committee and September 10,2Q10| Committee ofthe Whole Staff was asked to perform outreach to the four card nJonns located in Tukwila and provide on update atesubsequent Finance Committee rnemUnq. The fo||ovvinqrepresents the responses from the outreach to the card rooms as well as provides additional research and statistics qathereddurinQthe process. OUTREACH City staff members met with representatives from all four card rooms in Tukwila to discuss the proposed increase inqomb|inOtax from 1O96to1196. [)uhnq these meetingothere was also a qeneral discussion of what services the City provided and staff answered various questions and concerns from the card room representatives. Here are some ofthe genana|comments made from the various business owners. • Most owners and manaqers expressed concerns about their profitability with an additional increase inthe gan1Ninq tax. They all discussed how competitive their market is and that their costs are hsinq due tosalary, benefite, payouts, and nnmrketinq. * There was not as much concern expressed with the chanqe in business license fees. w Two ofthe businesses appreciated the balanced approach bothe budOet process, that the City was propominq396oMOVinqreductions aowell aonew revenue sources. w Many representatives discussed how the current staterequ|ationo. which limit the number oftables to15 per card room and the maximum bet et $3OO.make itdifficult to be successful. * At least two owners discussed the number and demoqraphics of the jobs provided. Some stated that dealers can q0000a|nnOat $100.000 per year. It was also stated that 70% of their staff are earninq minimum waqe, althouqh the averaqe waqe with tips ranOaafrom $38to$4Oper hour. One owner stated that many ofthese jobs donot require aoo||eAed8qnseand some don't require ahiqhschool diploma. • There was also concern expressed that the rioinqcost ofthe minimum vvmqe.the chmnqe infamily leave and medical leave, was not beop|nq pace with the increase inqroao qannb/inq receipts. • One of the card rooms located on Interurban Ave made a request for a cross walk to be installed to improve safety and improve connections between the card rooms in that area. • Parhinqwas aconcern for another card room, oteUnq that the lack ofporkinVinthe area neqadve|yaffeCtetheirpatronaqemndhaooehedtovvorkYxiththeC|tytVLt|||zeC|ty- ovvnedpropertynoxtdoor. This same card room also expressed the need for ecross walk toaccommodate pedestrians croesinOthe street between casinos. /\coordinq to theVVoshinqtOn State Ganlb|inq Connnn|eaion there are approximately 49 card rooms inthe state. Based on the published financial reports the number of card rooms reportinq Gnet loss has ranqadfrom 2S96in2U14to1896in2O10. |n2O1G'the most recent published data on|ine, there were five card rooms listed within Tukwila. Since then, the Palace Tukwila has closed. |n2O16. three ofthe card rooms were oparoUnQ ate net profit and were inthe top ten card rooms |nthe state. Based onnet income, the Macau Casino was ranked #1.the Riverside Casino was #Oand the Great American Casino was ranked #8. The Palace Tukwila and the Fortune Casino were both shown as operatinq at a net loss and were the lowest performing card rooms inthe state. INFORMATIONAL MEMO Page 3 In discussions with the Fortune Casino, they stated that there was an ownership change in 2017 and early results show that the card room is operating near break-even for 2017: a significant improvement over 2016, which saw a loss of $1.08 million. The Table below uses information from Tukwila's Business License and the Washington State Gambling Commission. Attachment A includes the detailed financial summaries for fiscal years 2016 and 2015. 2018 Employees FY 2014-2016 Net Income or (Loss) 2016 Full -Time Part -Time 2014 2015 Fortune Casino ** 54 105 ($640,529) ($1.08 M) Great American Casino * 11 0 $1.44 M $1.6 M $2.25 M Macau Casino 42 112 $1.93 M $2.4 M $4.34 M Riverside Casino 66 125 $685,000 $1.2 M $2.68 M Golden Nugget Casino ** ($380,432) ($296,239) Palace Tukwila ($785,040) * While researching these statistics it was discovered that Great American Casino may likely be under -reporting number of employees; staff will be looking into this issue. ** Fortune Casino took the place of the Golden Nugget Casino in 2015. HISTORICAL REVENUES FROM CARD ROOM GAMBLING TAX City staff reviewed historical gambling tax collections between 2011 through second quarter 2018 and an estimate for the second half of 2018. Projected year-end for 2018 is slightly lower than 2017 due to an incident at one of the card rooms earlier this year. Revenues from card room gambling tax has increased from $1.68M in 2011 to $3.8 M for 2017. 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 2011 Gambling Tax - Historical Revenues 2011-2018 (estimated) MY? 2012 2013 NOW 2014 : 2015 2015 2017 Fortune 3 Golden Nugget Palace , Macau m Riversid e N. Great American 2018 Estimate 2018 est. 7 INFORMATIONAL MEMO Page 4 CURRENT GAMBLING TAX RATES FOR DIFFERENT JURISDICTIONS AG@comparison, below are current card room q@0bliOg tax rates for some Dfthe surrounding jurisdictions. Local tax rates for card rooms City of Tukwila 1O%(0-5card rooms) lS96h6card rooms) %O96(more than 6) City nfSeattle Not permitted King County (unincnrporoted) 11% City ofRedmond * 12% City ofAuburn ** 496 City ofKent 1196 City ofKirkland 11% City pfRenton 1096 City of3eaTac 1096 City nfShoreline I0y6 City ofLakewood ll% The City nfRedmond currently does not have any card rooms ~* The City of Auburn lowered their rate from 12% to 4% in 2010 due to economic conditions; there have been recent discussions about raising the rate. RECOMMENDATION Council isbeing asked tOforward this item to the October 22.2O18Committee ofthe Whole meeting and subsequent November 5, 2018Regu|mr Meeting for adoption to approve the rate increase effective January 1, 2019. This will allow sufficient time for notification to affected businesses. ATTACHMENT Draft ordinance AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NOS. 2349 §2 AND 1809 §1 (PART), AS CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 3.08.030, "TAX RATES," TO INCREASE THE TAX ON CERTAIN GAMBLING ACTIVITIES; REPEALING ORDINANCE NOS. 2230, 2150 AND 1891; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the social card rooms operating in Tukwila generate significant gambling tax revenues for the City; and WHEREAS, there is a cost to patrol and enforce City codes related to gambling; and WHEREAS, the more card rooms operated as a commercial stimulant, the more City costs increase; and WHEREAS, pursuant to the City Council's power to tax certain activities for revenue purposes as set forth in RCW 9.46.110, the City Council now desires to increase the tax levied on any social card room operated as a commercial stimulant, upon certain conditions, by amending Tukwila Municipal Code (TMC) Section 3.08.030.A.4; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 3.08.030, "Tax Rates," Amended. Ordinance Nos. 2349 §2 and 1809 §1 (part), as codified at TMC Section 3.08.030, are hereby amended to read as follows: A. Pursuant to RCW 9.46.110 and RCW 9.46.120, as amended by the Laws of Washington, effective July 27, 1997, there is levied upon all persons, associations and organizations who have been duly licensed by the Washington State Gambling Commission, as authorized by law, the following tax: W: Word Processing\Ordinances\Gambling tax increase 8-10-18 RB:bjs Page 1 of 3 9 1. Bingo games and raffles: To conduct or operate any bingo games and raffles, a tax rate of 5% of the gross revenue received therefrom, less the actual amount paid by such person, association or organization for or as prizes. 2. Amusement game: To conduct any amusement game, a tax rate of 2% of the gross revenue received therefrom, less the actual amount paid by such person, association or organization for or as prizes. 3. Punchboards or pulltabs: For the conduct or operation of any punchboards or pulltabs, a tax rate of 5% of the gross receipts from such activities for commercial stimulant operators (taverns, restaurants, etc.); and a tax rate of 10% on the gross receipts less the amount paid out as prizes for charitable or nonprofit organizations. 4. Social card games: a. For the conduct or operation of any premises or facility used to play social card games, a tax rate of 1444 11% of the gross receipts received therefrom; provided that when the number of card rooms in the City exceeds five, the tax rate shall increase to 15% of the gross receipts received therefrom. Additionally, when the number of card rooms exceeds six, the tax rate shall increase to 20°/0 of the gross receipts received therefrom. b. For purposes of this provision, an operating business is defined as: a business open to the public and engaged in the business of operating a social card room for a period of 30 days. For purposes of this section, the 30 days are not required to be consecutive days. After the 30 days of operations, which triggers the increased tax rate, the Finance Director or his or her designee, shall notify the social card rooms of the increased rate and that rate shall be paid thereafter by all card rooms in this tax category, starting the financial quarter after notification. B. Non -Profit Organizations. 1. No tax shall be imposed under the authority of TMC Chapter 3.08 on bingo or raffles when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization as defined in RCW 9.46.0209, which organization has no paid or management personnel, and has gross income from bingo and raffles, or any combination thereof, not exceeding $5,000 per year, less the amount paid for or as prizes. 2. The Finance Director may waive the tax due each quarter from a bona fide charitable or nonprofit organization as defined in RCW 9.46.0209. This waiver may occur only if the charitable or nonprofit organization demonstrates by clear and convincing documentation that an amount equal to at least 70% of the tax due the City, as computed pursuant to TMC Section 3.08.030, will be donated to charitable nonprofit organizations serving the City whose purpose is to provide programs or facilities for meeting the basic health, education, welfare, or other needs of the residents of the City. Failure to donate at least 70% of the tax due the City will result in revocation of the waiver and the disqualification of the bona fide charitable or nonprofit organization to receive a waiver for future tax payments. W: Word Processing \Ordinances\Gambling tax increase 8-10-18 0 RB:bjs Page 2 of 3 Section 2. Repealer. Ordinance Nos. 2230, 2150 and 1891 are hereby repealed in their entirety. Section 3. 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 4. 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. Section 5. 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 January 1, 2019. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2018. 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\Gambling tax increase 8-10-18 RB:bjs Page 3 of 3 11 12 Attachment A Licensee MACAU CASINO/TUKWILA GREAT AMERICAN CASINO/EVERETT THE PALACE/LACENTER CASINO CARIBBEAN/KIRKLAND ROMAN CASINO RIVERSIDE CASINO CRAZY MOOSE CASINO/PASCO GREAT AMERICAN CASINO/TUKWILA SILVER DOLLAR CASINO/SEATAC SILVER DOLLAR CASINO/RENTON COYOTE BOB'S CASINO CARIBBEAN/YAKIMA FREDDIE'S CLUB/RENTON SILVER DOLLAR CASINO/MILL CREEK ROYAL CASINO Summary of House -Banked Card Room Financial Statements For the Fiscal Years Ending in 2016 (Sorted by Licensee Net Income or (Loss)) City Tukwila Everett LaCenter Kirkland Seattle Tukwila Pasco Tukwila SeaTac Renton Kennewick Yakima Renton Mill Creek Everett GOLDIE'S SHORELINE CASINO Shoreline BUZZ INN STEAKHOUSE/EAST WENATCI East Wenatchee LAST FRONTIER SLO PITCH PUB & EATERY HAWKS PRAIRIE CASINO MACAU CASINO/LAKEWOOD PALACE CASINO/LAKEWOOD RED DRAGON CASINO IRON HORSE CASINO/AUBURN ROXY'S BAR & GRILL CARIBBEAN CARDROOM WIZARDS CASINO LaCenter Bellingham Lacey Lakewood Lakewood Mountlake Terrace Auburn Seattle Kirkland Burien JOKER'S CASINO SPORTS BAR & FIESTA Richland CRAZY MOOSE CASINO/MOUNTLAKE TE Mountlake Terrace BLACK PEARL RESTAURANT & CARD RC Spokane ZS RESTAURANT AT ZEPPOZ Pullman LILAC LANES & CASINO Spokane CLUB HOLLYWOOD CASINO Shoreline LUCKY 21 Woodland LANCER LANES RESTAURANT AND CAS Clarkston ACES CASINO ENTERTAINMENT Spokane ALL STAR CASINO Silverdale PAPAS CASINO RESTAURANT & LOUNGI Moses Lake RC'S Sunnyside NOB HILL CASINO Yakima CHIPS CASINO/LAKEWOOD Lakewood GREAT AMERICAN CASINO/LAKEWOOD Lakewood WILD GOOSE CASINO Ellensburg CLEARWATER THE GETAWAY CASINO UBET NEW PHOENIX PALACE TUKWILA FORTUNE CASINO Wenatchee Walla Walla Longview LaCenter Tukwila Tukwila - - - - - 2016 REVENUES - - - - - Card Room Other Revenue Revenue (1) $10,739,617 $10,063,312 $14,485,800 $8,189,549 $17,995,374 $11,069,498 $7,616,741 $10,330,422 $6,709,333 $6,915,907 $4,663,728 $4,922,565 $7,505,167 $4,695,632 $5,054,124 $7,309,285 $2,536,207 $11,206,536 $2,477,818 $4,433,767 $6,076,688 $6,110,632 $3,750,846 $6,237,804 $2,905,364 $1,732,383 $4,714,717 $1,836,167 $4,052,309 $4,803,425 $1,139,145 $1,807,795 $5,069,112 $5,718,834 $1,001,900 $1,395,737 $3,262,189 $2,363,842 $902,545 $2,629,666 $5,210,471 $5,869,699 $730,431 $1,794,909 $1,016,593 $2,732,384 $5,491,280 $161,952 $4,303,347 Total Revenue Total Net Income Expenses or (Loss) (2) (3) [4] 1,854,217 $12,593,834 58,249,964 $4,343,870 2,148,703 $12,212,015 $8,340,122 $3,871,893 2,707,638 $17,193,438 $13,784,844 $3,408,594 1,758,967 $9,948,516 $6,736,429 $3,212,087 481,932 518,477,306 $15,683,158 $2,794,148 1,161,210 $12,230,708 $9,548,054 $2,682,654 2,350,808 $9,967,549 $7,417,695 $2,549,854 3,458,612 $13,789,034 $11,538,301 $2,250,733 1,784,293 $8,493,626 $6,308,659 $2,184,966 1,482,656 $8,398,563 $6,727,460 $1,671,103 870,543 $5,534,271 $3,998,549 $1,535,723 1,975,755 $6,898,320 $5,510,546 $1,387,774 1,868,140 $9,373,307 $8,092,205 $1,281,102 992,342 55,687,974 $4,468,982 $1,218,991 1,098,390 $6,752,514 $5,707,001 $1,045,513 1,025,471 $8,334,756 $7,335,561 $999,195 2,335,126 $4,871,333 $3,911,748 $959,585' 1,976,656 $13,183,192 $12,370,350 $812,842 2,085,869 $4,563,687 $3,808,660 $755,027 940,247 $5,374,014 $4,641,904 $732,110 1,686,145 $7,762,833 $7,098,647 $664,186 585,824 $6,696,456 $6,106,934 $589,522 766,736 $4,517,582 $4,067,946 $449,637 1,440,926 $7,678,730 $7,283,222 $395,508 2,405,857 $5,311,221 $4,917,047 $394,174 669,942 $2,402,325 $2,054,691 $347,634 2,635,655 $7,350,372 $7,003,258 $347,114 2,857,967 $4,694,134 $4,370,939 $323,195 $893,635 $4,945,944 $4,657,838 $288,105 893,516 $5,696,941 $5,444,540 $252,401 1,806,956 $2,946,101 $2,704,617 $241,484 1,686,175 $3,493,970 $3,271,291 $222,679 1,438,514 $6,507,626 $6,297,027 $210,600 3,147,461 $8,866,295 $8,661,993 $204,302 880,109 $1,882,009 $1,680,516 $201,493 $336,413 $1,732,150 $1,562,298 $169,852 4,458,000 $7,720,189 $7,604,857 $115,332 3,966,397 $6,330,239 $6,443,138 $112,899 532,874 $1,435,419 $1,333,140 $102,279 1,188,368 $3,818,034 $3,739,234 578,800 559,388 $5,769,859 $5,769,928 ($69) 1,611,747 $7,481,446 $7,506,355 ($24,909) 205,596 $936,027 $964,936 ($28,909) 783,451 $2,578,370 $2,651,007 (572,637) 789,004 $1,805,597 $1,921,320 ($115,723) 736,172 $3,468,556 $3,686,971 ($218,415) 934,098 $6,425,378 $6,855,853 ($430,475) 111,290 $273,242 $1,058,282 ($785,040) 1,339,351 $5,642,698 $6,721,467 ($1,078,769) 13 *REVISED AS OF JANUARY 10, 2017* Summary of House -Banked Card Room Financial Statements For the Fiscal Years Ending in 2015 (Sorted by Licensee Net Income or (Loss)) Licensee GREAT AMERICAN CASINO/EVERETT CASINO CARIBBEAN/KIRKLAND ROMAN CASINO MACAU CASINO/TUKWILA CRAZY MOOSE CASINO/PASCO SILVER DOLLAR CASINO/SEATAC CHIPS CASINO/LAKEWOOD GREAT AMERICAN CASINO/TUKWILA COYOTE BOB'S GOLDIE'S SHORELINE CASINO CASINO CARIBBEAN/YAKIMA RIVERSIDE CASINO BUZZ INN STEAKHOUSE/EAST WENATCI SILVER DOLLAR CASINO/RENTON THE PALACE/LACENTER SILVER DOLLAR CASINO/MILL CREEK SLO PITCH PUB & EATERY HAWKS PRAIRIE CASINO FREDDIE'S:CLUB/RENTONI'1 PALACE CASINO/LAKEWOOD BLACK PEARL RESTAURANT & CARD RC IRON HORSE CASINO/AUBURN ROYAL CASINO CARIBBEAN CARDROOM CRAZY MOOSE CASINO/MOUNTLAKE TE NEW PHOENIX LUCKY 21 RC'S CLUB HOLLYWOOD CASINO MACAU CASINO/LAKEWOOD ALL STAR CASINO ROXY'S BAR & GRILL City Everett Kirkland Seattle Tukwila Pasco SeaTac Lakewood Tukwila Kennewick Shoreline Yakima Tukwila East Wenatchee Renton LaCenter Mill Creek Bellingham Lacey Renton Lakewood Spokane Auburn Everett Kirkland Mountlake Terrace LaCenter Woodland Sunnyside Shoreline Lakewood Silverdale Seattle JOKER'S CASINO SPORTS BAR & FIEST/ Richland NOB HILL CASINO Yakima LILAC LANES & CASINO Spokane LANCER LANES RESTAURANT AND CAS Pullman LAST FRONTIER LaCenter CLEARWATER SALOON AND CASINO Wenatchee WILD GOOSE CASINO Ellensburg ZS RESTAURANT AT ZEPPOZ Pullman ACES CASINO ENTERTAINMENT Spokane WIZARDS CASINO Burien PAPAS CASINO RESTAURANT & LOUNG Moses Lake UBET GOLDEN NUGGET CASINO LUCKY BRIDGE CASINO GREAT AMERICAN CASINO/KENT RED DRAGON CASINO FORTUNE CASINO Longview Tukwila Kennewick Kent Mountlake Ter Tukwila GREAT AMERICAN CASINO/LAKEWOOD Lakewood 2015 REVENUES ---- Card Room Other Total Total Net Income Revenue Revenue Revenue Expenses or (Loss) (1) (2) (3) (4] $9,021,113 $2,260,632 $11,281,745 $8,420,640 $2,861,105 $7,412,902 $1,709,514 $9,122,416 $6,283,657 $2,836,759 $16,867,443 $537,189 517,404,632 $14,582,606 $2,822,026 $7,752,299 $1,624,944 $9,377,243 56,946,858 $2,430,385 $7,246,133 $1,455,759 $8,701,892 $6,569,222 52,132,67E $6,554,357 $1,164,644 $7,729,001 55 711,500 52,017,501 $7,680,793 $1,826,007 $9,506,800" $7,777,915 $1,728,885 $9,422,189 $1,890,097 $11,312,286 $9,690,428 $1,621,858 $4,653,169 $531,205 $5,184,374 $3,701,086 $1,483,288 $8,023,756 $2,046,819 $10,070,575 $8,641,564 $1,429,011 $4,960,841 $1,818,731 $6,779,572 $5,369,326 $1,410,246 $8,223,560 $2,369,806 $10,593,366 $9,421,189 $1,172,177 $2,644,141 $2,283,233 $4,927,374 $3,822,936 $1,104,438 $6,273,365 $810,417 $7,083,782 $6,093,628 5990,154 $10,049,140 $2,139,483 $12,188,623 $11,325,914 $862,709 $4,272,684 $579,432 $4,852,116 $4,024,508 $827,608 $2,388,074 $2,090,227 $4,478,301 $3,726,988 $751,313 $4,630,278 $901,031 $5,531,309 $4,809,265 $722,044 $6,754,628 $1,880,166 $8,634,794 $7,972,055 $662,739 $6,023,608 $1,449,412 $7,473,020 56,860,090 $612,930 $4,249,179 $767,636 $5,016,815 $4,543,691 $473,124 $5,825,785 $1,997,804 57,823,589 $7,374,636 $448,953 $4,586,119 $529,632 $5,115,751 $4,738,788 $376,963 $1,628,729 $582,562 $2,211,291 $1,874,462 $336,829 $4,349,187 $530,147 54,879,334 $4,598,340 $280,994 $7,540 716 $1,135,780 $8,676,496 $8,429,462 $247,034 $7,028,052 $4,199,155 $11,227,207 510,994,329 $232,878 $1,041,881 $595,376 $1,637,257 $1,423,510 $213,747 $5,386,990 $752,746 $6,139,736 $5,938,499 5201237 $4,800,250 $1,577,110 $6,377,360 $6,178,237 $199,123 $3,109,715 $4,343,459 57,453,174 $7,263,540 $189,634 $2,678,382 $2,317,060 $4,995,442 $4,837,839 $157,603 $1,556,487 $2,667,404 $4,223,891 $4,083,603 $140,288 $2,841,273 $1,145,540 $3,986,813 $3,851,345 $135,468 $1,625,615 $1,665,620 $3,291,235 53,168,474 $122,761 $997,818 $900,649 $1,898,467 $1,779,736 $118,731 $9,180,831 $1,873,415 $11,054,246 510,941,276 $112,970 $1,478,969 $775,644 $2,254,613 $2,206,473 $48,140 $723,064 $211,111 $934,175 $922,693 $11,482 $997,404 $1,669,158 $2,666,562 $2,695,560 ($28,998) $1,111,689 $316,370 51,428,059 $1,488,478 ($60,419) $5,007,370 $2,753,496 $7,760,866 $7,860,809 ($99,943) $2,115,973 $3,793,585 $5,909,558 $6,117,405 ($207,907) $2,684,316 $622,925 $3,307,241 $3,518,540 (5211,299) $2,254,306 $450,199 $2,704,505 $3,000,744 (5296,239) $2,407,722 $717,408 53,125,130 $3,465,598 (5340,466) $658,085 $157,377 $815,462 $1,450,178 (5634,716) ce $2,966,931" $599,415 $3,566,346 $4,079,712 (5513,366) $913,181 $293,046 $1,206,227 $1,846,756 (5640,529) $5,296,343 $876,731 56,173,074 $7,043,982 (5870,90B) 14 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Vicky Carisen, Deputy Finance Director CC: Mayor Ekberg DATE: October 10, 2018 SUBJECT: Proposed increase to business license fee ISSUE The City Council is being asked to increase the business license fee. BACKGROUND More than one-third of the City's general fund revenues comes from the City's portion of the sales tax (less than 1% of the total sales tax rate). With the statewide change to destination - based sales tax — which means sales tax is charged to where the item is delivered — Tukwila lost significant sales tax revenues, which continues to negatively affect the City today. In addition, many people prefer to shop online, skipping brick and mortar opportunities, further reducing Tukwila's sales tax generation. Finally, the State's mitigation payments to cities hard hit by destination -based sales tax — called Streamlined Sales Tax Mitigation payments — is ceasing in 2020. This act alone will reduce Tukwila's revenue by $1.2 million a year starting in 2020. The Administration instructed departments to achieve a 3% underspend in 2018, which the City is on track to achieve. In addition, during the development of the Mayor's proposed 2019/2020 budget, departments were directed to include a 3% reduction in supplies and services; Fire and Police were given a 1.5% goal. The result of this is approximately $1.8 million in savings per year. Also included in the proposed budget are new revenues to allow the City to continue to provide high level of services to the Tukwila community. New revenues include an increase in the City's gambling tax and business license fees. The proposed new revenue equals the amount of reductions identified above, and the goal was to propose a balanced approach to addressing the City's structural budget challenges of revenues not growing as fast as expenses. DISCUSSION The current business license fee is $70 per full time employee or $35 per part time employee. If the fee were raised to $112 per full time employee and $56 per part time employee, an additional $1.5 million could be generated. In comparison, the business license fee for the City of Kirkland is $105 per FTE and $112 for Redmond — neither city has a B&O tax. Raising the City's fee would bring it in line with these rates. City staff have been meeting with various members of the business community regarding this proposal including but not limited to the Seattle Southside Chamber, Sabey Corporation, Baker Commodities, Great American Casino, BECU and Seattle Chocolates. Overwhelmingly the businesses community members were pleased that the approach to the budget problems included reductions. While no one likes higher fees, the business representatives City staff spoke with understood the reason for the increase and appreciated the outreach. 15 INFORMATIONAL MEMO Page 2 City staff also recommend the Council change the "Contractor based outside of Tukwila" to a flat fee of $100. There remains significant confusion with these outside -based contractors as to how they calculate their fees with no employees located within the city. A flat rate will allow for an efficient administration of this category. Finally, when updating the business license fee resolution, staff noticed an outdated license category that has not been used in many years and recommend removing it from the fee schedule. RECOMMENDATION Council is being asked to forward this item to the October 22, 2018 Committee of the Whole meeting and subsequent November 5, 2018 Regular Meeting for adoption to approve the rate increase effective January 1, 2019. This will allow sufficient time for notification to affected businesses. ATTACHMENT Draft resolution 16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING RESOLUTION NO. 1913 AND ADOPTING A REVISED BUSINESS LICENSE FEE SCHEDULE. WHEREAS, the City has analyzed current business license fees; and WHEREAS, the State of Washington's streamlined sales tax mitigation payments are being phased out in 2019 and will cease in 2020, thereby reducing General Fund revenue by $1.2 million annually; and WHEREAS, sales tax revenue, due to destination -based sales tax distribution rules, has not grown at the same rate as expenditures; and WHEREAS, the City is seeking to take a balanced approach to ensure that ongoing expenditures are paid for with ongoing revenue; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Repealer. Resolution No. 1913 is hereby repealed. Section 2. Fee Schedule. For 2019, Business License fees will be charged according to the following schedule: (continued...) W:\Word Processing\Resolutions\Business license fee schedule revised 10-10-18 RB:bjs Page 1 of 4 17 ANNUAL BUSINESS LICENSE FEE SCHEDULE Standard Business License fee: $56 3-5 per part-time employee* plus $112 7--0 per full-time employee* * Employee is defined at Tukwila Municipal Code Section 5.04.010(10), copied below. • A "part-time employee" is an employee working 29 or less hours per week. • A "full-time employee" is an employee working 30 or more hours per week. equals total Business License Fee** ** The total Business License fee due time and full-time employees employed For example, a business with one part-time pay a Business License Fee of $56 5. A business with one full-time employee License Fee of $112 70. will vary based on the combination of part- by the business. employee (and no other employees) will (and no other employees) will pay a Business Minimum Business License fee: $56.00 1 .- Business License Fee for contractors operating within the City of Tukwila boundaries without a physical presence: $100.00 flat fee *Tukwila Municipal Code Section 5.04.010(10): 10. "Employee" means and includes each of the following persons who are not required by the City to have his/her/its own separate City of Tukwila business license: a. Any person employed at any business who performs any part of their duties within the City of Tukwila or reports from a location within the City's corporate limits; and b. Any person who is on the business's payroll, and includes all full-time, part- time, and temporary employees or workers; and c. Owners, officers, managers, and partners; and d. Any other person who performs work, services or labor at the business including, but not limited to, family members, regardless of whether they receive a wage from the business,. and e. Self-employed persons, sole proprietors, owners, officers, managers, and partners; and f. Any other person who performs work, services or labor at the business, including an independent contractor who may be exempt from requirements to have a separate City of Tukwila business license. W:\Word Processing\Resolutions\Business license fee schedule revised 10-10-18 8 RB:bjs Page 2 of 4 Other annual license fees: Adult Cabaret establishment $5OU]JO+Business LicenseFee (per above) Adult Cabaret entertainer $750]+Business License Fee (per above) Adult Cabaret manager $7500 Adult Entertainment Cabaret establishment $500.00+Business License Fee (per Adult Entertainment Cabaret entertainer $75.OQ+Business License Fee (per above) Adult Entertainment Cabaret manager $75.0' Amusement Center $5OO.00+Business License Fee (per above) Amusement device fee $5O.00per device + Business License Fee (per above) Amusement device removal fee $5O.00per device Amusement device storage fee $1O.00per device per day Appea|Fee $250.00 Cabaret establishment ' 3OO.UO+Business License Fee (per above) Contractor boCcd outside ofTukwila PaUoramprenniseo $100.00 Ponoromdavice $50.ODper device Panorennoperator $725.00 ' Penalty for late acquisition of business license (operating o business without avalid license) |freceived orpostmarked within Oto3Odays of operation = 596oflicense fee |freceived prpostmarked within 31to6Odays of operation =1O96oflicense fee |freceived orpostmarked within 81 toS0days of operation =1596Pflicense fee If received or postmarked within 91 to 120 days of operation =2O96nflicense fee If received or postmarked at 121 days of operation or longer = maximum of25gAoflicense fee vv1uvordPmceo ingVReoo|mmns\ousineshmeneefeeonheuule revised1u4o4x Page 9of4 19 Penalty for late renewal of business license If received or postmarked Feb. 1 through Feb. 28 = 15% of license fee If received or postmarked March 1 through March 31 = 30% of license fee If received or postmarked April 1 or later = 45% of license fee Peddler/Solicitor $70.00 Reinstatement of license fee $50.00 Washington State Patrol WATCH background check $12.00 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, a a Regular Meeting thereof this day of , 2018. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Rachel B. Turpin, City Attorney W:\Word Processing\Resolutions\Business license fee schedule revised 10-10-18 20 RB:bjs Page 4 of 4 City of Tukwila Allan Ekberg, Mayor INFOR ATIONAL E ORANDU TO: Finance Committee FROM: David Cline, City Administrator Rachel Bianchi, Deputy City Administrator Erika Eddins, Human Resources Analyst CC: Mayor Allan Ekberg DATE: October 10, 2018 SUBJECT: Review of Compensation Policy Resolution No. 1796 Update from October 2, Finance Committee Meeting Note: This is a new informational memorandum with the intent to capture the compensation policy review and discussion outcomes in preparation for discussion with the full Council. At the July 17, Finance Committee meeting, Administration sought committee direction to finalize the scope of the review of the City Council compensation policy. The committee requested that Administration bring back recommendations on the following proposed policy change considerations of above and below market adjustments, comparable cities, compression, recruitment incentives, and the process for non -represented compensation review. In addition, as directed by the Council, Administration has conducted the external market study using the Association of Washington Cities and County Employee Salary and Benefit Survey for 2018. Once the regressions analysis was applied to the raw data, the results show we are still close to market and are considered very competitive (Exhibit A.1 and A.2). This was also the case when we did the regression analysis for 2017. In future years, to address the potential for above and below market wage adjustments, it is recommended that Council adopt the Market Competitiveness standard provided by our Mr. Lawson, our compensation consultant as it provides an objective guide to address when positions are out of alignment with the market. Option 1 The Market Competitiveness Standard: +/-5% to +/-10% - Competitive with market +/-10% to +/-15% - Possibly Misaligned with market +/-I 5% and above - Significantly Misaligned with market For positions that are possibly and significantly misaligned with the market would require review of the data to ensure the appropriateness of market data and review of job classifications to ensure appropriate placement. 21 INFORMATIONAL MEMO Page 2 Below are three examples of a process Council could adopt using the Market Competitiveness Standard: OPTION A — External Market Study • During External Market Study (for even numbered years) — Positions that are 5% or more below market and up to 10% above are considered competitive with the market and will receive a market adjustment the year the market adjustment is to occur. • Those positions 10% to 15% above the market will not receive an adjustment during the year the market adjustment is to occur and will warrant further evaluation and possible reclassification. If further analysis results in reclassification, any adjustments will be made in alignment with City policy. OPTION B — Internal Equity • Considerations for cost of living adjustment (COLA) for odd numbered years will be based upon internal equity with represented groups to determine if an adjustment is warranted. Administration will inform City Council if an adjustment is warranted prior to implementation. OPTION C — Written Justification for Misaligned Positions The other option would be to update the current language in Resolution No. 1796 Section B.2. to state "If the City's pay schedule for any classification that does not represent the average of comparable salary ranges (+/-10%) written justification must be provided to the City Council." 2. Compression As it relates to defining Compression, Council Resolution No. 1796, states, "The goal of the City is to mitigate or avoid salary compression issues where possible. An example of salary compression would be when a non -represented supervisor earns less or is projected to earn less than those that he/she supervises due to contracted wage increase." During the Council work session Mr. Lawson, our consultant expressed that compression cannot be totally mitigated. Therefore, Administration recommends that Council retain the current definition reflected in the resolution as it is referenced above. It is further recommended to review the salary structure more frequently preferably in the year a market study is done to ensure that wage adjustments that occur over time do not create compression between salary bands. 3. Comparability During even numbered years when an external market study is conducted, the Administration uses Council Resolution No. 1796 parameters for comparability which looks at "All Puget Sound jurisdictions with +/-50% of Tukwila's annual assessed valuation, based upon the Department of Revenue data, will be used to create the list of comparable jurisdictions for evaluation of salary information." The issue of comparability has been discussed during the review of this resolution, specifically, do the parameters of +/-50% reflect the market to which we compare, or should the Committee also consider other factors to determine external market comparability. Mr. Lawson, our compensation consultant shared with the Council at their work session on June 19, that comparability factors could include employee population, assessed valuation double or half the size of Tukwila, geography, and demographics. Whereas, Administration would not recommend considering assessed valuation of double the size of Tukwila, consideration of going above +50% would provide more consistency where jurisdictions come in and out for comparison. For example, in the 2017 Market Study Issaquah and Shoreline were included since they were within +50% of A.V. In the 2018 Market Study, these two cities increased to 54% and 57% of A.V. and therefore were excluded (see table below). 22 INFORMATIONAL MEMO Page 3 Assessed valuation changes annually as reported by the Department of Revenue, Taxing District Levy Table 30. City 2017 Assessed Value Assessed Value % of Tukwila 2018 Assessed Value Assessed Value % of Tukwila Tukwila $5.040 1.00% $5.736 1.00% Shoreline $7.426 1.47% $8.848 1.54% Issaquah $7.385 1.46% $8.989 1.57% Assessed Value represented in Billions In addition, given that these concerns have been raised by the Non -Represented Employees group and in previous discussions, the following are some suggested options for your consideration that will mitigate the inconsistency the current policy parameters impose. OPTION 1 "All Puget sound jurisdictions with +75/-50% of Tukwila's annual assessed valuation, using the most current data from County Assessors, will be used to create the list of comparable jurisdictions for evaluation of salary information." As reflected in Exhibit B, the assessed valuation comparison table, this would serve to eliminate the in and out annually of comparator jurisdictions. If consideration were given to this option, Administration recommends a "second criteria to assessed valuation, to include employee population of similar size". As Exhibit B also shows, by increasing to +75% of assessed valuation there would be more similar employee populations to compare to Tukwila. OPTION 2 Make no change and retain current policy statement of comparison to "All Puget Sound jurisdictions of +/-50% of Tukwila's annual assessed valuation". New Recruitment Incentives The Finance Committee requested more information on what other cities do to recruit and retain employees. Twenty- five (25) Puget Sound Cities were surveyed and responded to our request on the attached Exhibit C. The data shows that some cities offer hiring bonuses specifically to law enforcement positions, additional vacation hours, or the ability to use vacation sooner than the typical six months. Several cities did not offer any recruitment incentives. As has been discussed in previous committee meetings, Tukwila currently offers hiring bonuses to attract applicants to highly competitive positions such as Building and Construction Inspector, or Law Enforcement positions. Mr. Lawson, our compensation consultant, shared with the Council that a market premium may be appropriate to implement specifically when you want to attract and retain jobs that are competitive in the labor market. Administration recommends the Committee define in its policy a statement that reflects its philosophy of providing above average benefits, hiring incentives and competitive pay to attract, and retain a highly skilled, qualified and trained workforce. 23 INFORMATIONAL MEMO Page 4 Non -Represented Compensation Review Process The final item for discussion is should the process for non -represented compensation review change. Currently Resolution No. 1796, provides that non -represented employee compensation be reviewed annually to consider external market or a cost of living adjustment. Unlike represented groups, the non - represented compensation review typically is presented in the fall prior to the year of implementation. This is a more public process. Administration recommends adopting review of non -represented compensation at the time the budget is being adopted so that external market and cola wage adjustments are a more efficient and seamless transition covering a two-year period versus an annual review process. The remainder of schedule for review of the City Council Resolution No. 1796 is as follows September 5 — Finalize recommendations for City Council consideration September 10- Bring recommendation to the City Council for review and discussion September 17 — Adoption of changes to Resolution No. 1796 for implementation We look forward to discussing these recommendations and options at the Finance Committee meeting on August 21, 2018. Follow Up from the August 21, Finance Committee Meeting At the August 21, Finance Committee Meeting, Administration reviewed the following recommendations with the Committee members: • Reviewed results of the 2018 External Market Study for Non -Represented Employees; • Recommendations and options for consideration on above and below market adjustments; • Recommendations regarding how to address compression; • Recommendations and options for consideration on comparability; and • Recommendation on new recruitment incentives and the process for review of Non -represented compensation. The Committee reviewed the recommendations, provided input, and asked these recommendations be discussed further at the Sept 5 Finance Committee meeting. In addition, based upon the results from both the 2017 and 2018 external market studies, the regression shows that we are competitive with the market. It was requested that Administration continue the current policy of conducting the external market study. The Finance Committee asked for Administration to supplement the tables in Exhibits A.1 and A.2 to show the 2018 market study regression results based upon +60 of Assessed Valuation to include the two cities that were excluded from the original study based upon the +/-50% Assessed Valuation criteria. Those cities are Issaquah and Shoreline and the Committee can see the impact of this change now reflected in Exhibits A.1.1 and A.2.1. This analysis shows that the City remains competitive within the market averages. It was also requested that the table in Exhibit B be updated to include columns showing City populations as a percentage of Tukwila's. Exhibit B.1 includes the population information as well as a column showing the 2018 Assessed Values by County data. The County data provides the most current assessed valuation figures available for cities and is included for comparison to the State Department of Revenue which lags a year behind. 24 INFORMATIONAL MEMO Page 5 Follow Up from the September 5, Finance Committee Meeting Following the September 5 Finance Committee meeting, staff updated the resolution to reflect the following changes from Committee members: • Increase timeliness of information — edits to A.2 and addition of A.3 • Update comparability definitions — edits to B.1 o Use most current data from the County Assessors o Update the policy to +75% in order to maintain stability in the comparable cities year after year to mitigate changes in assessed valuation o Include a secondary criteria of FTE count as a refining factor to provide a manageable number of comparable jurisdictions • Include policy direction on what makes a position considered to be in market — addition of B.3 • Include policy direction on what would happen if positions are found to be above the market during a market survey year — addition of B.3 • Provide policy language on internal equity between non -represented and represented employees during COLA years — edits to B.4 After the September 5 meeting, staff learned that effective January 2018 the Bureau of Labor Statistics introduced the first changes to CPI since 1998. The former Seattle -Tacoma -Bremerton index, which included King, Pierce, Island, Kitsap and Thurston Counties, is now the Seattle -Tacoma -Bellevue index, which includes King, Pierce and Snohomish Counties only. Staff recommends that the policy be updated to reflect this new index and use this definition for "Puget Sound jurisdictions" referenced in section B.1. This change would remove Bainbridge Island as a comparable jurisdiction. Edits to B.4. Staff was asked to provide information on the market effect of these changes on non -represented employees. Analysis shows that raising the assessed value to +75% keeps all City employees consistent with the market. There is no significant variance between what was presented when just Issaquah and Shoreline were added. The attached tables provide this analysis for non -represented employees. The remainder of the schedule for review of the City Council Resolution No. 1796 is as follows September 18 — Finalize recommendations for City Council consideration September 24 - Bring recommendation to the City Council for review and discussion October 1 — Adoption of changes to Resolution No. 1796 for implementation Follow Up from the September 18, Finance Committee Meeting Following the September 18 Finance Committee meeting, staff updated the resolution to reflect the following changes from Committee members: • Updated timeliness of information — edits to A.2 and deletion of A.3 • Provided a definition for comparable employee population based on city police departments — edits to B.I • Updated documentation and process for positions above market — edits to B.3 • Updated documentation and process for adjustments to COLA — edits to B.4 • Provided a new definition for compression — edits to B.6 o "An example of salary compression is when there is only a small difference in pay between employees regardless of their skills, level, seniority or experience." • Updated process to have an annual review of the compensation policy if warranted — edits to B. 7 25 INFORMATIONAL MEMO Page 6 A revised schedule is provided for your review October 2 — Finalize recommendations for City Council consideration October 8 or 22 - Forward recommendation to the City Council for review and discussion October 15 or Nov 5 — Adoption of changes to Resolution No. 1796 for implementation Follow Up from the October 2nd, Finance Committee Meeting Following the October 2nd Finance Committee meeting, staff was asked to provide updated market study data (Exhibit D) reflecting the proposed second set of criteria for defining comparable jurisdictions based on having a city police department. The proposed language is unchanged: • "A second criteria to be used to refine comparable jurisdictions is to include cities with their own police departments." The justification for this additional criteria was to better match comparable cities. For example, in Exhibit B.1, it shows several cities that have comparable assessed values by percentages, but significantly lower total FTE's. For example, based on Tukwila's assessed value, SeaTac is at 100% and Burien is at 103%. When compared with the number of Tukwila's FTE's, SeaTac is at 35% and Burien is at 24%, mainly due to not having a city police department. Most other comparable cities with similar assessed values and a police department had much closer percentages of FTE's. The effect of this criteria removes Burien, Shoreline, Maple Valley, and SeaTac. The overall impact of removing these jurisdictions did not 'significantly change the analysis. In piepaung the updated data staff noted and corrected a data error with the re ession line at the lower bands. Staff updated the resolution to reflect the following changes from Committee members: • Clarified the first sentence to remove the words "or more" — edits to B.3 • Added to the definition for compression to include a process to follow when it is observed and action to be taken for council - edits to B.6 o "Administration will provide a written justification for the City Council's review documenting that an adjustment is warranted prior to implementation." A revised schedule is provided for your review: October 16 — Finalize recommendations for City Council consideration October 22 — Forward recommendation to the City Council for review and discussion November 5 — Adoption of changes to Resolution No. 1796 for implementation 26 16000 14000 12000 10000 8000 6000 4000 2000 0 0 2000 4000 City of Tukwila, WA Market Data Regression y = 1.1162x + 3376 = 0.9851,..•••• A 6000 8000 10000 12000 Max Avg Max Median Linear (Max Median) 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 0 City of Tukwila, WA Market Data Regression - Revised Analysis 2000 4000 y = 1.179x -i- 3178.3 R2= 0.9836 6000 8000 10000 12000 Max Median Tukwilla •—•—••• Linear (Max Median) 2 0 New Exhibit 9/12/18 +7 AV EXHIBIT A.1.2 City of Tukwila, WA Market Data Regression ' y=1.I758n+317I/4 8000 6000 � 4000 2000 ' u 2000 4000 6000 8000 lOUUO 12000 4 Max Median --—Linear(max[Nedien) Structure Comparison: Max Comparisons All Market Median Market Median Hrly Current Max Max Based on Regression Results % Diff N/A N/A $27.12 $23.77 -12% Al2 N/A N/A $29.30 $25.92 -12% A13 N/A N/A $31.47 $28.06 -11% B21 N/A N/A $33.65 $30.21 -10% B22 N/A N/A $35.83 $32.36 -10% 823 $5,975 $34.47 $38.00 $34.50 -9% C41 N/A N/A $46.26 $43.09 -7% C42 $7,276 $41.97 $48.89 $45.24 -7% C43 N/A N/A $51.06 $47.38 -7% C51 N/A N/A $53.79 $50.07 -7% C52 N/A N/A $57.06 $53.28 -7% 061 $10,071 $58.10 $58.04 $55.97 -4% D62 N/A N/A $59.07 $58.11 -2% D63 $10,639 $61.38 $61.15 $60.26 -1% D71 N/A N/A $63.77 $62.94 -1% D72 $11,453 $66.08 $66.88 $66.16 -1% E81 N/A N/A $69.48 $68.85 -1% E82 $12,416 $71.63 $71.58 $70.99 -1% E83 $12,932 $74.61 $73.66 $73.14 -1% E91 $13,302 $76.74 $76.23 $75.82 -1% E92 N/A N/A $79.40 $79.04 0% F101 N/A N/A $82.56 $82.26 0% F102 $14,163 $81.71 $83.65 $85.48 2% Negative % = leading market Positive % = lagging market Average % Difference There are no current Non -Represented positions in Bands All, Al2, AU -4.8% Observations: Current maximums for DBM ranges All - C52 currently lead the market Beginning with D61, the ranges are aligned with market in a highly competitive manner EXHIBIT A.2 30 EXHIBIT A.2.1 Structure Comparison: Max Comparisons - Revised Analysis w/Issaquah & Shoreline Market Median Hrly Current Max Max Based on Regression Results: Original % Diff All N/A $27.12 $22.87 -16% Al2 N/A $29.30 $25.14 -14% A13 N/A $31.47 $27.40 -13% B21 N/A $33.65 $29.68 -12% B22 N/A $35.83 $31.94 -11% B23 $36.61 $38.00 $34.21 -10% C41 N/A $46.26 $43.28 -6% C42 $43.19 $48.89 $45.54 -7% C43 N/A $51.06 $47.81 -6% C51 N/A $53.79 $50.65 -6% C52 N/A $57.06 $54.05 -5% D61 $57.89 $58.04 $56.88 -2% 062 N/A $59.07 $59.15 0% D63 $60.26 $61,15 $61.41 0% D71 N/A $63.77 $64.25 1% D72 $66.77 $66.88 $67.65 1% E81 N/A $69.48 $70.49 1% E82 $74.26 $71.58 $72.75 2% E83 $76.31 $73.66 $75.02 2% E91 $77.08 $76.23 $77.85 2% E92 N/A $79.40 $81.25 2% F101 N/A $82.56 $84.66 3% F102 $84.25 $83.65 $88.06 5% Average % Difference -3.9% There are no current Non -Represented positions in Bands All, Al2, A13 Negative % = leading market Positive % lagging market Observations: Pay structure better aligned with market with inclusion of Issaquah and Shoreline 31 New Exhibit 9/12/18 EXHIBIT A.2.2 Structure Comparison: Max Comparisons +75%/-50% Market Median Hrly Current Max Max Based on Regression Results % Diff All N/A $27.12 $22.82 -16% Al2 N/A $29.30 $25.08 -14% A13 N/A $31.47 $27.34 -13% B21 N/A $33.65 $29.60 -12% B22 N/A $35.83 $31.86 -11% B23 $36.61 $38.00 $34.12 -10% C41 N/A $46.26 $43.17 -7% C42 $42.61 $48.89 $45.43 -7% C43 N/A $51.06 $47.69 -7% C51 N/A $53.79 $50.52 -6% C52 N/A $57.06 $53.91 -6% D61 $56.94 $58 04 $56.74 -2% D62 N/A $59.07 $59.00 0% D63 $61.38 $61.15 $61.26 0% D71 N/A $63.77 $64.08 0% 072 $66.83 $66.88 $67.48 1% E81 N/A $69.48 $70.31 1% E82 $75.43 $71.58 $72.56 1% E83 $75.54 $73.66 $74.82 2% E91 $75.54 $76.23 $77.65 2% E92 N/A $79.40 $81.04 2% F101 N/A $82.56 $84.44 2% F102 $84.25 $83.65 $87.83 5% Negative % = leading market Positive %= lagging market Average % Difference -4.09% There are no current Non -Represented positions in Bands All, Al2, A13 Observations: Current maximums for DBM ranges All - C52 currently lead the market Beginning with 061, the ranges are aligned with market in a highly competitive manner 32 Puget Sound City Comparisons within +75%/-50% AV EXHIBIT B Des Moines Maple Valley Lake Stevens Mukilteo Puyallup SeaTac Lakewood Burien Lynnwood Tukwila Marysville Bainbridge Island Edmonds Bothell Shoreline Issaquah Federal Way Auburn Assessed Valuation Comparisons King King Snohomish Snohomish Pierce King Pierce King Snohomish King Snohomish Kitsap Snohomish King/Snohomish Snohomish King King King/Pierce 3,194,299,789 3,268,616,351 3,324,196,683 4,354,213,237 5,148,032,791 5,405,585,665 5,410,414,843 5,608,165,807 5,654,422,666 5,736,568,228 6,425,149,097 6,898,602,203 8,177,283,180 8,760,887,474 8,848,561,852 8,989,557,112 9,420,224,291 9,555,039,113 0.55 132 0.56 46 0.57 93 0.75 124 X 0.89 269 0.94 112 0.94 209 0.97 78 0.98 350 1.00 321 X 1.12 277 1.20 122 1.42 220 1.52 328 X 1.54 176 1.56 248 1.64 323 1.66 437 33 co REVISED 9/12/18 X X X X x Maple Valley x Lake Stevens King Snohomish X x x Des Moines X x Mukiltea King Snohomish X x X Puyallup Pierce x Lakewood Pierce X x x SeaTac X X X X x x Tukwila Lynnwood Burien King King Snohomish King X X X x X x Marysville Bainbridge Island Edmonds Snohomish Kitsap Snohomish Bothell King/Snohomish X X x x Issaquah Shoreline King King X Federal Way Auburn Mercer Island Renton King King/Pierce Assessed Valuation Comparisons 3,268,616,351 56% 3,324,196,683 57% $ 3,194,299,789 55% 5 4,354,213,237 75% $ 5,148,032,791 89% $ 5,410,414,843 94% $ 5,405,585,665 94% $ 5,736,568,228 100% $ 5,654,422,666 98% $ 5,608,165,807 97% $ 6,425,149,097 112% $ 6,898,602,203 120% $ 8,177,283,180 143% $ 8,760,887,474 153% $ 8,989,557,112 157% $ 8,848,561,852 154% $ 9,420,224,291 164% $ 9,555,039,113 167% 46 14% 93 29% 132 41% 124 39% 269 84% 209 65% 112 35% 321 100% 300 109% 78 24% 277 86% 122 38% 220 69% 328 102% 248 77% 176 55% 323 101% 437 136% 24,900 127% 31,740 161% 30,860 157% 21,240 108% 40,500 206% 59,280 302% 28,850 147% 19,660 100% 36,950 188% 50,680 258% 65,900 335% 23,950 122% 41,260 210% 44,370 226% 36,030 183% 55,060 280% 96,350 490% King King Kent Redmond King King $ 12,083,477,559 211% $ 15,035,333,726 262% $ 16,335,686,545 285% $ 18,631,080,894 325% 205 64% 540 168% 691 215% 642 200% 78,960 402% 3,680,189,655 60% 3,784,529,975 61% $ 3,823,309,451 62% EXHIBIT B.1 X X 5 - 4,745,542,557 77% $ 5,666,549,214 92% $ 6,002,783,089 97% $ 6,165,328,557 100% $ 6,164,943,263 _100% $_^ 6,272,081,312 101% $ 6,385,711,481 103% $ _ 7,144,089,843 116% $ 7,542,154,879 122% $ 9,107,284,679 147% $ 9,900,884,044 160% X X x X X X X x X X X X 24,210 123% 102,700 522% 127,100 646% 62,110 316% 10,152,241,433 164% 10,228,874,349 165% 10,301,293,691 167% 10,600,014,202 171% * WA State Departmen of Revenue (DOR) data was used for the 2018 Market Survey. The most recent DOR data available at the time of survey is 2017 figures (data lags by one year.) FTE = Full Time Equivalent Employees County Assessed Values from County Assessor Data current 2018 values Sorted by 2018 County Assessed Values X x 13,326,314,672 215% 16,909,050,051 273% 18,597,339,729 301% 20,770,064,850 336% X X X X X X EXHIBIT C Surveyed 25 Puget Sound Cities below are the responses received. Puget Sound Cities Recruiting IncentivesOffered Comparison on Recruiting Incentives Auburn None Bainbridge Island Bremerton Burien Edmonds Federal Way Issaquah None Hiring Incentives Policy for difficult to fill positions. Bonus up to $5k At times offer a bank of vacation hours (management positions) None Hiring bonus offered to lateral police officers; Director level positions receive 40 hours vac upon hire; have paid up to $5k in relocation expenses when applicable None Kent Kirkland Lake. Stevens Lakewood Can offer vacation immediately upon hire; signing bonuses for PD; may advance to next salary step after 6 months instead of one year. Have paid for travel to and from for final interviews Hiring bonus for police officer May provide mare vacation to non -reps at hire Management level non -reps may receive initial leave upon hire, and anon occasion a higher vacation accrual rate Lynnwood None Maple Valley Mt. Lake Terrace Mukilteo Renton SeaTac Managers & Directors may negotiate for additional vacation Can offer higher vacation accruals and/or ability to use accrued vacation before 6 months On occasion have offered higher management positions vacation (2-3 weeks) upfront Hiring bonus to lateral police officers; on occasion have given lump sum vacation or accelerated vacation accrual rate. None 36 EXHIBIT D Exhibit D Structure Comparison: Max Comparisons +75%/-50% AV Market Median Market Median Hrly Current Max Max Based on Regression Results % Duff All N/A N/A $27.12 $24.10 -11% Al2 N/A N/A $29.30 $26.32 -10% A13 N/A N/A $31.47 $28.54 -9% 821 N/A N/A $33.65 $30.76 -9% B22 N/A N/A $35.83 $32.98 -8% B23 $6,307 $36.38 $38.00 $35.19 -7% C41 #N/A N/A $46.26 $44.08 -5% C42 $7,201 $41.54 $48.89 $46.29 -5% C43 #N/A N/A $51.06 $48.51 -5% C51 #N/A N/A $53.79 $51.29 -5% C52 #N/A N/A $57.06 $54.62 -4% D61 $9,739 $56.19 $58.04 $57.39 -1% D62 #N/A N/A $59.07 $59.61 1% D63 $11,333 $65.38 $61.15 $61.83 1% D71 #N/A N/A $63.77 $64.60 1% D72 $12,114 $69.89 $66.88 $67.93 2% E81 I4N/A N/A $69.48 $70.71 2% E82 $13,074 $75.43 $71.58 $72.93 2% E83 $12,932 $74.61 $73.66 $75.14 2% E91 $12,961 $74.78 $76.23 $77.92 2% E92 #N/A N/A $79.40 $81.25 2% F101 #N/A N/A $82.56 $84.58 2% F102 $14,604 $84.25 $83.65 $87.91 5% Negative % = leading market Positive % = lagging market 2018 data with proposed criteria for comparable cities with police departments: excludes Burien, Seatac, Shorline, Maple Valley 37 38 NOTE: Shaded text in various locations reflects changes jade after review by the Finance Committee on, October 2, 2018.; A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ESTABLISHING A COMPENSATION POLICY FOR CITY OF TUKWILA EMPLOYEES AND REPEALING RESOLUTION NO. 1796. WHEREAS, the City believes that the purpose of a compensation program is to facilitate recruiting, retention, development and productivity of employees; and WHEREAS, the City desires to utilize standardized policies, procedures and processes, wherever possible, for compensating all employee groups, both represented and non -represented; and WHEREAS, the City recognizes that current economic conditions and forecasts, long-range City budget forecasts, and position rates for comparable jurisdictions, as well as internal equity considerations, should assist in guiding the compensation of employees; and WHEREAS, the City has made a determination to, when economic conditions allow, review and adjust non -represented employee salaries via a market analysis to that of the average of comparable jurisdictions in even -numbered years, and to provide a cost -of -living (COLA) allowance in odd -numbered years; and WHEREAS, the City has made a determination to, when economic conditions and negotiations allow, provide represented employees with salaries that reflect the average of comparable jurisdictions; and WHEREAS, the City has made a determination to, when economic conditions allow, provide benefits to represented and non -represented employees that are slightly above the average of comparable jurisdictions; and WHEREAS, the City Council will participate in setting negotiation expectations and reviewing and approving represented employee group contracts; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: W:\Word Processing \Resolutions\Compensation policy for City employees strike-thru 10-10-18 Page 1 of 3 39 Section 1. The following statements and processes are adopted for the purpose of guiding compensation programs for employees of the City of Tukwila. A. Information to be provided to the City Council. 1. For Represented Employees. A written presentation of current internal and local external public agency salary and benefit trends, including a salary and benefits market survey of comparable jurisdictions, as defined herein, will be provided to the City Council. This presentation must be made to the Council prior to the commencement of negotiations with the bargaining units regarding salary and benefits. The City Council and Administration will discuss represented employee group negotiation expectations, negotiating points, salary and benefit change floors and/or ceilings prior to the beginning of and at appropriate points during, negotiation sessions. 2. For Non -Represented Employees. A written presentation of current internal and local external public agency salary and benefit trends, including a salary and benefits market survey of comparable jurisdictions, as defined herein, will be provided to the City Council by Administration every year by the end of the third quarter that a non -represented salary increase is due. Relevant Association of Washington Cities (AWC) data from the previous year's Washington City and County Employee Salary and Benefit Survey, for the comparable jurisdictions, will be used in the salary market survey. 3. It is the responsibility of the City Council Finance Committee (or successor) to ensure that the written presentations described above are delivered on schedule, B. Compensation Policy. 1. All Puget Sound jurisdictions with +75/-50% of Tukwila's annual assessed valuation,based upon the Department of Revenue data using the most current data from County Assessors, will be used to create the list of comparable jurisdictions for evaluation of salary information. A second criteria to be used to refine comparable jurisdictions is to include cities with their own police departmentemployee population. It is desirable to use the same comparable jurisdictions for both represented and non - represented employee groups. 2. For non -represented employees, the City desires to pay the average salary for the particular pay scale, as derived from the comparable jurisdiction data described in Section B.1. If the City's pay scale for any classification does not represent the average of comparable salary ranges (+/-5%), written justification must be provided to the City Council. For represented employees, the City desires to pay salaries that are competitive to the City's comparable jurisdictions. „ 3. Positions that are 5 Yo below the market and up to 10% above the market are considered competitive with the market and will receive a market adjustment the year the studysurvey is to occur. Those positions more than 10% above the market will not receive an adjustment during the year the market adjustment is to occur and will warrant further evaluation Documented justification of potential reclassification will be provided to the City Council for review and approval. If 40 W:\Word Processing \Resolutions\Compensation policy for City employees strike-thru 10-10-18 Page 2 of 3 the documented justification results in reclassification, any adjustments willbe made in alignment with City policy. 43. The cost -of -living adjustment (COLA) in odd -numbered years for non - represented employees shall be based upon 90% of the Seattle -Tacoma -Bellevue BremertonConsumer Price Index (CPI-W) Average (June to June). It is desirable to calculate represented cost -of -living adjustments the same way, unless a different method is authorized by the Council. Considerations for cost -of -living adjustment for odd -numbered years will be based upon internal equity with represented groups to determine if an adjustment is warranted, Administration will provide a written justification to the City Council documenting that if -an adjustment is warranted prior to implementation. 54. The goal of the City is to establish parity between represented and non - represented employees' benefits. The City desires to provide employee benefits that are competitive to the comparable cities described herein. The City will endeavor to keep increases to annual health care costs under market averages. If costs exceed market averages, adjustments will be made to reduce benefit costs. 65. The goal of the City is to mitigate or avoid salary compression issues where possible. An example of salary compression is when there is only a small difference in pay between employees regardless of their skills, level, seniority or experience earn less than those that he/she supervises due to contracted wage incr ases. io:R '4* 76. The City Council shall review the compensation policy described herein on an annual basis to assess efficacy and make adjustments if warranted. If the Administration determines that a deviation from the above process (in its entirety or for individual positions) is necessary, it will provide justification to the City Council for review and ap-proval prior to the adoption of any process change. Section 2. Resolution No. 1796 is hereby repealed. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2018. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Filed with the City Clerk: Passed by the City Council: Resolution Number: W:\Word Processing \Resolutions\Compensation policy for City employees strike-thru 10-10-18 Page 3 of 3 41 42 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL E ORANDU TO: Finance Committee FROM: Rachel Bianchi, Deputy City Administrator CC: Mayor Ekberg DATE: October 4, 2018 SUBJECT: Amendment to Prothman Contract ISSUE The contract with Prothman, which is providing the City an Interim Human Resources Director, must be amended to continue provide these services to the City. BACKGROUND After the departure of the long-time Human Resources Director, the City contracted with Prothman for a not to exceed amount of $40,000 for an experienced Interim Human Resources Director. It is expected that these funds will be used by early to mid -November. An additional $40,000 will allow the Interim Human Resources Director to remain through January, which is the City's timeline for bringing on a new Human Resources Director. The Interim Human Resources Director is providing critical services to the City and this expertise does not exist within the City at this time. The City is initiating a search for a new, permanent Human Resources Director this month, with the goal of having someone begin in January. The Council is being asked to amend the contract to provide for a do not exceed amount of $80,000. RECOMMENDATION The Council is being asked to forward this contract to the November 5, 2018 Regular Meeting Consent Agenda. ATTACHMENTS Proposed contract amendment. 43 44 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: CONTRACT FOR SERVICES Amendment #1 Between the City of Tukwila and Prothman Company That portion of Contract No. 18-132 between the City of Tukwila and Prothman Company is hereby amended as follows: Section: Fees & Expenses. The Interim Human Resources Director's hourly rate is $91.00 for each hour worked by the Interim Human Resources Director; provided that the total amount of payment to the Consultant shall not exceed $80,000 without express written modification of the Agreement signed by the City. Invoices will be submitted to the City every two weeks and are due within twenty (20) days of receipt. A 3% charge will be added reflecting Prothman's City of Issaquah and Washington State B&O tax obligations. The City is also responsible for any client -required licenses, fees or taxes. Delinquent payments will be subject to a late payment charge of 12% (annual) and which will be applied to any unpaid balance owed commencing seven (7) days after the payment due date. All other provisions of the contract shall remain in full force and effect. Dated this day of , 20 CITY OF TUKWILA CONTRACTOR Allan Ekberg, Mayor Printed Name: ATTEST/AUTHENTICATED APPROVED AS TO FORM Christy O'Flaherty, MMC, City Clerk Office of the City Attorney CA Revised December 2016 Page 1 of 1 45 46 City of Tukwila Allan Ekberg, Mayor TO: FROM: CC: DATE: INFOR ATIONAL E ORANDU Finance Committee Rachel Bianchi, Deputy City Administrator Mayor Ekberg October 4, 2018 SUBJECT: Amendment to Cabot Dow & Associates Contract ISSUE The contract with Cabot Dow & Associates for labor relations support needs to be amended. BACKGROUND The City has a contract with Cabot Dow & Associates for $35,000 for 2018, which has typically covered the City's needs for labor relations support. However, this year has required more support on labor relations issues and negotiations due to all of the contracts needing to be negotiated at once. In addition, one contract has gone to interest arbitration. In order to retain the services of Cabot Dow & Associates through December 31, 2018 the contract must be increased. The Council is being asked to amend the contract to provide for a do not exceed amount of $55,000. RECOMMENDATION The Council is being asked to forward this contract to the November 5, 2018 Regular Meeting Consent Agenda. ATTACHMENTS Proposed contract amendment. 47 48 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: CONTRACT FOR SERVICES Amendment #1 Between the City of Tukwila and Cabot Dow & Associates That portion of Contract No. 18-035 between the City of Tukwila and Cabot Dow & Associates is hereby amended as follows: Section 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 $55,000 at a rate of $165.00 per hour. All other provisions of the contract shall remain in full force and effect. Dated this day of , 20 CITY OF TUKWILA CONTRACTOR Allan Ekberg, Mayor Printed Name: ATTEST/AUTHENTICATED APPROVED AS TO FORM Christy O'Flaherty, MMC, City Clerk Office of the City Attorney CA Revised December 2016 Page 1 of 1 49 50 City of Tukwila Allan Ekberg, Mayor TO: FROM: BY: INFOR ATIONAL E ORANDU Finance Committee David Cline, City Administrator Cheryl Thompson, Executive Assistant CC: Mayor Ekberg DATE: October 10, 2018 SUBJECT: Mayor's Office Department 2019-2020 Proposed Budget ISSUE As provided for in the budget process approved by the Finance Committee, Council Committees will be reviewing budget sections prior to review by the full Council. The Mayor's Office section of the budget is ready for review by the Finance Committee. BACKGROUND The Mayor's Office is composed of Administration, the City Attorney's Office, the City Clerk's Office and Economic Development. The Mayor's Office Budget also includes the Planning Commission, the Equity and Social Justice Commission, the Arts Commission, the Park Commission and the Library Advisory Board. DISCUSSION The proposed budget for the Mayor's Office is a 3.12 percent decrease of the 2018 budget in 2019 and a 1.63 percent decrease of the 2018 budget in 2020. The following will summarize the proposed changes to the Mayor's Office budget by division, in the order they appear in the budget document. Changes from 2017-2018 Budget Administration • Public Defense Contract for services reduced by $24,000 due to a decrease in case assignments. • Operating Supplies reduced by $2,200 based on actual costs in previous years. • Professional Services reduced by $40,000 due to the reduction of the Summit Strategies Contract for Federal Lobbying Services. • Memberships and Dues increased in 2020 based on increase in dues from Association of Washington Cities, Puget Sound Clean Air and Sound Cities Association. • Leasehold Tax was added to the 2019 and 2020 budgets in the amount of $20,000 each year after the State Auditor's Office, during their audit this year, identified that the City had lease agreements subject to Leasehold Tax. Payment was made in 2018 and this was added to cover Leasehold Tax payments going forward. Boards and Commissions - Reductions made based on actual costs in 2016 & 2017. Planning Commission • Miscellaneous reduced by $1,000. 51 INFORMATIONAL MEMO Page 2 Equity and Social Justice Commission • Supplies reduced by $1,125. • Services reduced by $2,550. Arts Commission • Repairs and Maintenance reduced by $2,500. Park Commission • Miscellaneous reduced by $400. Library Advisory Board • Operating Supplies reduced by $1,000. City Clerk • Postage reduced by $6,000. • Micro-filming/Imaging reduced by $10,000. Economic Development • Economic Development Liaison position reduced to .5 FTE from Economic Development budget with .5 FTE transferring to the Lodging Tax Fund budget. • Professional services increased by $3,000 but funds were reallocated from Miscellaneous. • Travel reduced by $2,000. • Miscellaneous: $3,000 reallocated to Professional Services and reduced by an additional $5,750. City Attorney • $5,000 for extra labor for prosecution support eliminated as we are now contracting for prosecution services. • Office Supplies reduced by $2,000 with the change in prosecution services. • Contracted attorney services increased by 1.5% for 2019-2020. • Special Matters reduced by $29,000 which covers the 3% reduction for the division and still is in line with amount spent in previous years prior to the Public Safety Plan. RECOMMENDATION Staff recommends that the Finance Committee forward this section of the budget on to the Committee of the Whole for review. If there are no recommended changes Council consensus will be requested to move this departmental budget forward to the final budget package in October. ATTACHMENTS Draft Mayor's Office 2019-2020 Proposed Budget 52 Mayor's Office Mayor (1) City Administrator (1) Executive Coordinator (1) City Attorney's Office (Contract) Governance Manager and City Clerk (1) Deputy City Clerk (1) Economic Development Admin strator (1) Economic Development Liaison (5) Content Management Coordinator (1) Admin Support Coordinator (1) Admin Support Technician (1) 53 54 DEPARTMENT: Mayor 03 FUND: General RESPONSIBLE MANAGER: Allan Ekberg Description FUND NU88BER:OOO POSITION: Mayor The Mayor iothe Chief Executive and Administrative Officer of the City, incharge of alldepartments and employees forth by RCVy35/\.12`1OO.The Mayor has general supervisionofthe administration of all City government and all City interests. It is the Mayor's responsibility to prepare and submit tOthe City Council a proposed budget and to serve as the official and ceremonial head ofthe City. The Mayor is assisted with his duties by the City Administrator. The Mayor's Office encompasses Administration, the City Attorney's C)ff|Ce. the City Clerk's Office, Communications & GDyeFDnlant Re|otions, Economic Development, and Human Services. 2017-2018Accommp|ishM1eMts � Completed the ao|o of phase 1 land for Tukwila Village to developer and celebrated the grand opening of two affordable senior apartment buildings, the new Tukwila Library, Kona Kai Coffee, the Sullivan Center, and plaza. Formed non-profit community organization tooperate the Sullivan Center and plaza. Strategic Goals 1, 3 & 5 � Awarded designation of four ceDeUa tracts as Opportunity Zones to attract investment through federal capital gains tax incentives. Began marketing the opportunity zones and facilitating � Supported Forterra'S purchase of the Knights Inn motel for eventual partnership with Abu Bokr Islamic Center tVdevelop affordable apartments and small business spaces. Strategic Goals t 2,3 &5 � Supported business outreach and negotiations related to the Public Safety Plan. Strategic Goals I & 3 � Finished Phase 2ofthe GET -IT added GEPA/EF1[)permit records from 1BS1-2O08 to the Digital Records Center. Strategic Goal 4 2019-2020 Outcome Goals � Sale ofthe second (and final) ofTukwila Village land and opening ofthe final two senior apartment buildings and mini -food hall/small business incubator. Strategic Goals f.3 & 5 � Sale of land to HealthPoint to develop e health and vveUmese facility providing primary medical Facilitate private redevelopment along Tukwila International Boulevard. Strategic Goals 1, 3 55 ^ Facilitate private development in the 8outhoanter District with a focus around Tukwila pond. * Inno|en7art online naoonde request system through the Citv's[}kzho| Records Center. Strategic Goal 4 � Finish GET -IT Phase 3 to include Public Works so-builts on the City'e Digital Records Center. Strategic Goal 4 * Faci|itate2O19 election withK] County Elections, provide enhanced Open Public Meetings Act training to new and returning elected officials implementing new best practices. Strategic Goal 2019-2020 Indicators of Success � Continued implementation of Strategic Plan goals including increased partnerships between the City, businesses, non -profits, and regional organizations, as well as enhanced leadership by staff ensuring that City policies and practices reflect Tukwila's diverse community. � Tukwila Village land sale and construction is finished; land sale to HeolthPoind is complete and construction has started. � Improvement of the public records request process resulting in a reduction of time spent fulfilling 56 Department Detail Staffing and Expenditure by Program PROGRAMS FTE BUDGET PERCENT CHANGE 2019 % of Total Budget 2020 % of Total Budget 2019-20 Public Defense Program 0.20 479,685 14.6% 481,193 14.3% 0.3% Attorney Services 0.00 406,230 12.4% 406,230 12.1% - Prosecution Services 0.00 166,000 5.1% 166,000 4.9% - Digital Records Center 0.76 131,198 4.0% 134,917 4.0% 2.8% Special Matters Services 0.00 128,500 3.9% 128,500 3.8% - Public Records Requests 0.61 120,899 3.7% 125,235 3.7% 3.6% Required Citywide Functions 0.25 113,180 3.4% 114,402 3.4% 1.1% Strategic Planning and Policy Implementation 0.30 111,619 3.4% 113,229 3.4% 1.4% Community Representation 0.25 104,023 3.2% 105,984 3.2% 1.9% Council Agenda/Meeting Functions 0.89 103,910 3.2% 108,783 3.2% 4.7% Records Management 0.85 100,489 3.1% 104,410 3.1% 39% Intergovernmental Relations 0.35 97,789 3.0% 100,449 3.0% 2.7% Legislative Affairs Oversight 0.00 93,333 2.8% 93,333 2.8% _ Commute Trip Reduction/Green Initiatives 0.00 91,000 2.8% 91,000 2,7% - Ordinance, Resolution & TMC Development 0.61 67,575 2.1% 70,314 2.1% 4.1% Council Legislative Support 0.30 68,225 2.1% 69,727 2.1% 2.2% City Clerk Division Administration 0.41 64,160 2.0% 65,938 2.0% 2.8% City Property Development and Management 0.33 60,404 1.8% 61,738 1.8% 2.2% Meeting Coordination, Scheduling, and Facilitation 0.30 57,187 1.7% 59,068 1.8% 3.3% Boards, Commissions and Committees 0.10 54,188 1.6°/0 54,942 1.6% 1.4°A. Essential Public Services 0.44 48,946 1.5% 50,793 1.5% 3.8% Internal Communications 0.25 47,470 1.4% 48,812 1.5% 2.8°/O Personnel 0.20 40,850 1.2% 41,815 1.2% 2.4% Conferences/Training 0.10 37,475 1.1% 37,957 1.1°/0 1.3% Legal/Public Notices 0.21 37,406 1.1% 38,462 1.1% 2.8% Public Safety Plan 0.23 37,239 1.1% 38,078 1.1% 2.3% Organizational Development and Training 0.15 36,982 1.1% 37,733 1.1% 2.0% Elections/Voter Registration 0.01 33,328 1.0% 33,407 1.0% 0.2% City Policy Development 0.18 32,035 1.0% 32,744 1.0% 2 2% Regional Partnerships and Relationships 0.08 32,302 1.0% 32,679 1.0% 1.2% Employee Recognition Program 0.10 28,240 0.9% 28,994 0.9% 2,7% Emerging Issues & Opportunities 0.05 22,383 0.7% 22,591 0.7% 0.9% Budgeting/Purchasing 0.10 20,970 0.6% 21,723 0.6% 3.6% Accounts Payable 0.10 18,913 0.6% 19,329 0.6% 2.2% Business & Development Attraction and Retention 0.08 18,530 0.6% 18,822 0,6% 1.6% Destination Development 0.05 18,047 0.5% 18,216 0.5% 0.9% Economic Development Administration 0,05 17,418 0.5% 17,626 0.5% 1.2% City Scholarship 0.05 16,743 0.5% 17,120 0,5% 2.3% Tukwila International Blvd Revitalization 0.08 14,291 0.4% 14,584 0.4% 2.0% Resident Inquiries and Assistance 0.10 13,445 0.4% 14,199 0.4% 5.6% Business Relationships and Satisfaction 0.08 13,122 0.4% 13,414 0.4°/0 2.2% Citywide Strategic Goals 0.08 13,122 0.4% 13,414 0.4% 2.2% Special Presentations 0.05 11,198 0.3% 11,411 0.3% 1.9% Special Event Coordination 0.05 10,440 0.3% 10,817 0.3% 3.6% Professional Services 0.00 10,000 0.3% 30,000 0.9% 200.0% Administration Essential Services 0.00 9,677 0.3% 8,441 0.3% (12.8%) Administration 0.03 8,257 0.3% 8,342 0.2% 1.0% Records Retention, Management, Archiving, & Destruction 0.05 6,825 0.2% 7,202 0.2% 5.5% Lodging Tax Applications Oversight & Support 0.03 3,665 0.1°/0 3,750 0.1% 2. 3°/0 Marketing & Sales to Overnight Tourists 0.03 3,665 0.1% 3,750 0.1% 2.3% Marketing & Sales to Day Tourists 0.03 3,665 0.1% 3,750 0.1% 2.3% PROGRAM TOTALS 9.5 3,286,243 100% 3,355,367 100% 2.1% *Priority Based Budgeting was implemented beginning with the 2019 - 2020 biennium budget. Therefore; no historical data is available. 57 58 Proqrarn Descriptions Public Defense Proqnann: Oversight of the Public Defense Program, processing invoicos, reports, complaints. Prepares annual program report. Applies for grant funds tosupport the program. Oversight ofOffice ofPublic Defense Grant funds. Prepares reports as required. /\ttorneyServices: Contracted City Attorney services. Prosecution Services: Contracted Prosecuting Attorney services. Diqital Records CoOt8[ Growth and development of . microfilming and digitization, importing new record series, GET -IT, policies, training, new initiatives, maintenance costs. Special Matters Services: Legal representation for matters not covered under Attorney Services. Public Records Requests: Administration ofCity-wide process, handling all aspects ofrequests, database updot8s,JLARC reporting, risk mitigation. Required Citywide Functions: Postage accounts, postage meter lease, recorded doounnenta, plant care, participate on ^|tV committees &initiGtiVes. administration. 8t[atoqio P|aOn Dqand PVUcy|[n[damentaUon: Provide strategic direction, set goals, and evaluate policy choices to best serve the city; establish priorities, create Vvorko|ons^ monitor progress, evaluate and assess next steps. ConomunityRepresentation: Participation iO@variety ofcommunity groupsfor the purposes ofproviding leadership; offering the cityperspective; strengthening community ties; and fostering good relationships with Tukwila School District, Rotary, Chamber of Commerce. Council Aqendo/MgetinQ Functions: Administration, agenda producdon, agenda review and |ono-Uarnl planning, meeting facilitation, minutes, legislative history. Records Management: Central files, contracts, records center, retention &destructiVn.archiva|tranefers. staff trmiDing, risk mitigation &cOM1p|i8nce. policy development, dgtab8Ses. security costs, program administration. |ntmmoVernDlenta| Relations: Participation in a Yehetv of organizations for the purposes of maintaining good relations and open communication with other organizations providing leadership and perspective on shared concerns and issues. Liaise with other governmental entities. Publicly support and recommend legislation that iadeemed beneficial tothe community. Regional: Sound Cities Association, King County City Managers/Administrators,Hiqh|ine Forum State: Association ofWashington Cities Federal: National League of Cities, International City/County Management Association, US Conference of Mayors LeOis|otk/e Affairs (]vareqht: Monitors contracts with federal and state lobbyists that assist the City in 59 Commute Trip Reduction/Green Initiatives: Commute Trip Reduction Program incentives: C)RCAomrdo. incentives for carpoolers and walkers/bicyclists. Ordinance, Resolution &TMC Development: Legislation creation and review, amending and repealing documents, ongoing TMC development, administration. Council Legislative Support: Oversees and coordinates with city staff in preparation for City Council meetings; Provide information to Council for their deliberation. Support and implement Council policy decisions. Also collects and monitors agenda items for Committee and Council meetings. City Clerk Division Administration: Invoice payment, timecards, staff0tg*4 Firemen's Pension BoGrd, budgeting, supplies, copier costs, printing, training & travel, Administration. City Property Development and Menaqennent: Coordinating development and managing specific city owned properties including the following: ~ HealthPointHealth and Wellness Center ~ Newporter site Tukwila Village Meetinq Coordination. 8chedu|inQ. and Facilitation: Organizes and conducts meetings for city staff an needed. Admin Team, bi-weekly meetings, retreats, cross -departmental teams. Boards, Commissions and Committees- Provides support tnCity Boards and Commissions bYassisting with appointments and monitoring terms of appointment and training requirements. Receive applications and compiles memo for Mayor, schedule interviews, osrequested, maintains a roster with all appointees and expiration dates, send nlarnOs for approved appointment for city council 2genda, issue press releases, send thank you, regrets and/or congratulations letters to residents. Essential Public Services: claims,litigation appeals, petitions. Conduct bid openinQa, notary service, pet |iceDsing, general counter inquiries, point of S@|8. central switchboard, mail distribution, research. Maintain logs and databases. Internal CQOlOJUnic@tk]OS: Share the vision for the city administration, pertinent DeVVS, and other information. Assist other departments in the strategy,orgonization, coordination and implementation of inter -departmental city activities and programs. Make recommendations effecting change in programs, policy and established practices for communications. Personnel: Appointment of Department Directors/staff members as outlined in the municipal code; advise Human Resources on personnel issues; review grievances per union contracts. Confenenoes/TnaiDinQ: Represent the City at Conferences and receive training to stay current with the latest developments, skills, and new technologies available. Handle registration and travel to (f|ight, hotel, transportation, meals, [egistF@tiCO3 etc.) for Mayor, City AdniniStratOr, and Government Relations Manager and Executive Assistant. LegoNzub|ioNoticeerequired {]p notices, publication, advertising bids, RFPa.RFQe.Special 60 Public Safetv Plan: Work on the public safety plan such as providing assistance to affected businesses Organizational Development and Traininc[ Offer training opportunities intended tnexpand the knowledge and effectiveness cfstaff toaccomplish city goals. Elections/Voter Registration: General and Special Ehectione, voter registration, oaths of office, election certificates, administration. {}ityPo|ioyDevelopment: General City policy work. Includes reviewing policy changes proposed by other departments, participating on policy development teams, and recommending policy changes. Raqkono| Partnerships: Participation in regional partnerships. Various boards and commissions the City serves on related tOtourism. Employee Recoqnition Program: Oversight of the Employee Recognition Program including Annual Employee Awards, Longevity Awards and quarterly recognition events. Emerging Issues & Opportunities Budqetihoainq: Budget oversight, supply and inventory nnaintenance, processing of invoices. Preparation of mJrnaapondence, rnanloe presentations. Oversight of scheduling for Mayor and City Accounts Payable: Processing and payment of vendor invoices. Business & Development Attraction and Retention: Attracting businesses and developments to Tukwila. This includes staff time communicating with prospects and businesses considering moving orexpanding, marketing materials, and related work. Destination Development: Related toinvestments inthe area to support tourism Economic Development Administration: General administrative work. City Scholarship: Oversight of the [%tv Scholarship program for high school seniors. Advertises scholarship, coordinates with local Schoo|e, receives and reviews applications, schedules interviews as neeMad, administrative support to City Scholarship Conlnlittee, arranges for presentation of recommendations to City Counoi|, coordinates with recipients to appear before City Counci|, prepares award letters, certificates and arranges for disbursement of funds to schools. Tukwila |nte[Oatk}O8| BlvdRevitalization: Work assisting the revitalization of Tukwila International Boulevard Resident Inquiries and Assistance: Acts as the executive level of contact for resident inquiries and complaints. Directs and �sYvm[a questions as needed including coordinate responses between departments. See Click Fix - respond to issues as assigned Business Relationships and Satisfaction: Building and maintain relationships with businesses and includes attendance at business networking events, providing general assistance tobusinesses, and Citvwide Strateqic Goals: Staff time working on general citywide strategic goals 61 Special Presentations: Prepares and executes presentations to convey city progress. Special Event Coordination: (Ground D Cuttings, etc.) Attend meetings, 8SSht with GU aspects of p|onning, orQanizotion, sponsorship and promotion of events. Assist with oat up and take down of eVents, send eD1a|[s and/or letter invitations or informational iteDlS. CQrOpUe all necessary resources (reading nnoterio|. presenters, |ooation, food, etc.\, any necessary purohones, coordinate with other agencies/businesses, get promotional materials designed and made. Professional Services: Courier services, court filing feoa, investigations, temporary assistance. Administration Essential Services: General office equipment costs such oocopier rnohlenonoeond|eaoe expense. Administration: General administrative costs. Records Retention, Manaqement, Archivinq, & Destruction: Retains, manages, archives and disposes of records. Provides upkeep and organizes ongoing electronic files for ease of use. Lodqinq Tax Applications Oversiqht & Support: Administration oversight ofthird-party funding requests Marketinq & Sales to Overniqht Tourists: Funding third parties and city activities involved in marketing for overnight guests. Marketinq & Sales to Dav Tourists: Funding of third parties and city activities involving day visitors. Budget Change Discussion: Salaries &Bmnefits COLA increases were applied tosalaries, and benefits were adjusted toaccount for changes in healthcare and retirement. Supplies and Services Over $10000ofcuts were made to the Services category. Funds budgeted for the contracted Public Defender were decreased to bring the budget in line with the athornevaactua| caseload. Funds for other professional services, special nlatterS, and office supplies were also reduced while balancing the budget. 62 Expenditure Summary Actual Budget Percent Change Projected Expenditures By Division 2016 2017 2018 2018 2019 2020 2018-19 2019-20 Administration $ 1,398,829 $ 1,428,586 $ 1,385,058 $ 1,470,084 $ 1,432,322 $ 1,470,106 -2.57% 2.64% Economic Development 439,617 384,226 371,600 381,890 313,227 319,082 -17.98% 1.87% City Clerk 750,259 655,802 728,366 779,453 790,425 815,910 1.41% 3.22% Attorney (Contracted) 530,725 664,913 871,964 733,185 710,730 710,730 -3.06% 0.00% Equity & Diversity Commission 4,643 3,409 3,475 9,675 6,000 6,000 -37.98% 0.00% Planning Commission 725 1,079 3,547 3,750 2,750 2,750 -26.67% 0.00% Arts Commission 21,245 25,903 25,349 26,000 23,500 23,500 -9.62% 0.00% Parks Commission 2,336 3,208 2,251 3,688 3,288 3,288 -10.85% 0.00% Library Advisory Board 3,501 3,528 3,326 5,000 4,000 4,000 -20.00% 0.00% Department Total $ 3,151,882 $ 3,170,654 $ 3,394,936 $ 3,412,725 $ 3,286,242 $ 3,355,367 -3.71% 2.10% Mayor Expenditures By Type Actual Budget Percent Change 2016 2017 Projected 2018 2018 2019 2020 2018-19 2019-20 Salaries & Wages $ 1,026,479 $ 960,332 $ 1,035,368 $ 1,047,432 $ 1,037,503 $ 1,069,915 -0.95% 3.12% Personnel Benefits 372,469 375,013 400,858 401,796 400,020 416,132 -0.44% 4.03% Supplies 44,612 42,045 49,629 54,856 48,531 48,531 -11.53% 0.00% Services 1,613,375 1,744,573 1,871,931 1,871,641 1,763,188 1,783,789 -5.79% 1.17% Intergovt. Svcs & Taxes 38,247 42,425 37,150 37,000 37,000 37,000 0.00% 0.00% Capital Outlays 56,700 6,265 - - - - 0.00% 0.00% Department Total $ 3,151,882 $ 3,170,654 $ 3,394,936 $ 3,412,725 $ 3,286,242 $ 3,355,367 -3.71% 2.10% 63 Expenditure Detail - Salaries and Benefits Salaries are based on actual costs for existing positions and include cost of living adjustment per contract agreements. �Mayor��� Position Description 2018 pTs 2019 pTs 2019BudSou,u Salaries Benefits unoo rTE coonBuuSwted Salaries Benefits Mayor 1 1 $ 110.770 $ 53,985 1 $ 112,932 $ 56.034 City Administrator 1 1 183,748 59,998 1 187,320 61,801 Economic Development Admin 1 1 150.096 89,035 1 155,336 89.957 Executive Assistant 1 1 91.765 40/637 1 37.083 42.850 EconunicDe« Ueieom 1 0.5 55.457 17,847 0.5 56.585 18.411 City Clerk 1 1 120.159 42.514 1 127.770 45.001 Deputy City Clerk 1 1 74.849 28,017 1 73.048 28.541 AUm1nSupport Technician 1 1 01.589 37.790 1 63.101 33.376 adminSupport Coordinator 2 2 141.070 71.017 2 144.673 74,531 Extra Labor 48.000 8.581 48.000 8.629 neportmontTnto| 10 9.5 * 1.037.503 $ 400.020 u.s $ 1.06e.815 * 416.132 64 Expenditure Detail - Supplies, Services, and Other Supplies include anlaU tools and equipment. Services include travel, equipment replacement and OW charges, insurance subscriptions and memberships, among others. Account Name ~' - ' �����:��� -- ' ~ '- Budget_ 2016 2017 Projected 2018 2018 2019 2030 Salaries $1.021,611 $ 847.846 $ 995.015 $ 894,432 $ 989,503 $1.021.915 Extra Labor 4.868 12.488 40.353 53.000 48.000 48.000 FICA 74.203 71..397 78.730 73,725 75,110 77.150 Pension 110.306 111.503 128.533 118.947 120.435 133.550 Industrial Insurance 3,103 3.102 2.804 3'886 3.952 4.334 Healthcare 184,858 189.012 100.690 205.128 181,523 201.098 Total Sa|ohea&Benefits 1'398.948 1'335,345 1'436,226 1.449,228 1,437'524 1'486,047 Supplies 41.826 42.045 49.629 54.856 48.531 48.531 Small tools 2.787 ' ' ' ' , Total Supplies 44.612 42.045 49'639 54'856 48.531 48.531 Pmfeasinna|aoNcea 1.183.644 1.345.847 1.458.790 1.418.730 1.342.330 1.342.230 Communication 68.707 64.628 66.775 72.600 66,600 66.600 Travel 20.881 16.961 22.185 37.050 30.000 30,000 Advertising 4.610 11.305 10.117 14.750 14.750 14.750 Operating leases 28.835 36.828 38.557 38.126 38.873 37`474 Repair and maintenance 50.203 22.534 28.473 31.880 29.360 29.360 Miscellaneous 256,485 246.471 246,035 258.525 241.376 283.375 Total Gan/ioaa 1'613'375 1'744'573 1.871.931 1.871.641 1'763'188 1'783'789 |ntergovernmental 38.246 42.425 37.149 37.000 37.000 37.000 Excise Taxes 1 1 ' ' ' ' Capital 58.700 6.265 ' ' - ' Total Other 84'947 48'690 37.149 37.000 37,000 37'000 Total [Noyo, $3.151'882 ' 3'170.654 $3'394,936 $3'412.725 $3,286.243 $3'355'367 65 66 DEPARTMENT: Mayor's Office (03) FUND: General RESPONSIBLE MANAGER: Allan Ekberg Description DIVISION: Administration FUND NUMBER: 000 POSITION: Mayor The Mayor is the Chief Executive and Administrative Officer of the City, in charge of all departments and employees as set forth by RCW 35A.12.100. The Mayor has general supervision of the administration of all City government and all City interests. It is the Mayor's responsibility to prepare and submit to the City Council a proposed budget and to serve as the official and ceremonial head of the City. The Mayor is assisted with his duties by the City Administrator. The Mayor's Office encompasses Administration, the City Attorney's Office, the City Clerk's Office, Communications & Government Relations, Economic Development, and Human Services. Expenditure Summary Mayor - Administration Expenditures By Type Actual Budget Percent Change 2016 2017 Projected 2018 2018 2019 2020 2018-19 2019-20 Salaries &Wages $ 350,742 $ 361,124 $ 372,912 $ 368,565 $ 391,283 $ 402,401 6.16% 2.84% Personnel Benefits 136,142 145,413 153,139 150,143 155,116 161,181 3.31% 3.91% Supplies 17,845 11,068 13,510 17,200 15,000 15,000 -12.79% 0.00% Services 855,853 862,290 808,347 897,176 833,923 854,524 -7.05% 2.47% Intergovt. Services & Taxes 38,247 42,425 37,150 37,000 37,000 37,000 0.00% 0.00% Capital Outlays - 6,265 - - - - 0.00% 0.00% Expenditure Total $1,398,829 $1,428,586 $1,385,058 $1,470,084 $1,432,322 $1,470,106 -2.57% 2.64% Expenditure Detail - Salaries and Benefits Salaries are based on actual costs for existing positions and include a cost of living adjustment per contract agreements. Mayor's Office - Administration Position Description 2018 FTE 2019 FTE 2019 Budgeted Salaries Benefits 2020 FTE 2020 Budgeted Salaries Benefits Mayor 1 1 $ 110,770 $ 53,985 1 $ 112,992 $ 56,034 City Administrator 1 1 183,748 59,999 1 187,320 61,801 Executive Assistant 1 1 91,765 40,637 1 97,089 42,850 Extra Labor 5,000 496 5,000 496 Department Total 3 3 $ 391,283 $ 155,116 3 402,401 $ 161,181 67 Expenditure Detail - Supplies, Services, and Other Supplies includes office supplies and nneoha for meetings. Services include public defender oosts, nonsuumg, travel, nn8rDberahipe, among others; intergovernmental includes election and voter registration costs, among others. Mayor - Administration 4"ovvnt mumu*, :Actual ' Budget mns umn Projected 2018 uom cmn uoun 000.03.512.500.31o0 Supplies omoa $ m wV $ $ ~ $ $ 000.03�513100.31.00 Supplies -Office 14.196 5.158 8,801 12,200 10,000 10.000 000o3513.100.31r43 Supplies ' Meeting Meals 3.649 5,361 4.710 5,000 5,000 5,00 Total Supplies 17,8*5 11.0e8 13,510 17,200 15.000 15.000 000u1512.500.41u0 Prof S,na'Public Defender Costs 462.135 451,038 426702 477.000 453.000 453,000 000u3.513.100.41�01 Prof Sov'poEL 32.416 13.058 2,500 - - 000.03.513.100,41z2 Prof Svcs -Strategic Plan, Washington on 121,714 1nr.�:� 1co��u �oo`000 ��o.n0o ��oono consultants' ' ' 000.03.513.100.41z4 Prof Svcs -Scholarships 13'000 10,000 10,000 10,000 10.000 10.000 000.03.513.100.41.05 Prof Svcs -Tukwila Pantry donations 000z3.513.100.42x0 Communication Te|ecn~cmon , ' 413 onr ' . 000.03.513.100.43.00 �axa|'��ve|mrwuC`�xvC�nnn��*n�v ` svvxochamma,�mmm.snc. 1o.n4a 1a^8on 17oo1 ' umonn ' un,o0n �onnn ' 000.03.513.100.45.00 Rental ' Operating Rentals and leases 2,589 3/048 1.812' 2,600 2,60 2,600 m0zm.5111nn.45.e^Rental-Equipment Replacement Fund 2.662 en 5e1 591 1,827 591 000.03.513.100A5,95 Rental Equipment Rental O&M 17,836 18,242 22.735 22.735 22,248 22.083 000�03.513J00*8o0 RaM-nupu|rs for 1copier and uprinters 1.6e8 ' 3,250 3.250 3,250 3.250 000o3.513.100.*e.00 wivo Community recognition 10.562 819 2,890 5.500 5,500 5.500 000.03.513.100.4e.01 M|en-Memberships invarious national, state, and local 'organizations and subscriptions 61.268 60.531 64,350 65,000 65,000 67,000 000.03.513.100.49o3 miou - Employee appreciation 19.81* 26.196 18.'600 15.000 15.000 15.000 000.03.513.100.49.05 Mivc Registrations: � xWcand wLo meeonoa.other m�mnooand tm1nino *a8n ` ��m ' �48n ' �nUo ' �000 ' *ono ' 000z3.513.100.49.51 misc Carpool nubomev ' 100 ' 00003�511100.49.53 Miso Leasehold Tax Contracts 20,000 000.01513�100.49.56 Mioc Green initiatives 91.*56 102.573 106,408 e1.000 91.000 91,000 Total Services xoomm 862,290 808,347 897,176 833,92: ns*ow 000.03.513.100.53.00 Tamcsuxosmnm-exoioetux 1 1 o ' 000,03.514.500.57.00 |morgwnmm|Prof 8"co Election costs 33.109 sr`uao 32.032 32,000 32,000 32,000 000.03.511.800.51.00 |ntnrg~nmnuProf Svcs King County voter registration costs _ 000o3.573.800.51.00 mtergommm|Prof Svcs ' Liquor profits excise tax o`1o7 �1oo n11r ' �000 onoo ' »noo ' Total Intergovernmental 38,247 *2,425 37,150 37,000 37,000 o\mm 000.03.594.130.64.00 Capital macmreryu Equipment 6,265 - ~ Total Other ' s.e»s ' ' ' ' 68 DEPARTMENT: Mavor03 FUND: General RESPONSIBLE MANAGER: David Cline Description DIVISION: Planning Commission FUND NUMBER: OOO POSITION: City Administrator The Planning Commission consists of seven members. The mission of the Planning Commission is to conduct public hearings on and decide land use applications or forward recommendations to the City Council. ThePlanning Commission also serves as the Board of Architectural Review, which reviews the design of commercial and multi -family developments. It also reviews and n1aheo recommendations regarding the Comprehensive Plan and Zoning Regulations. Expenditure Summary Mayor - Planning Commission Expenditures gyType ActualBudget Percent Change 301e 2017 Projected 2018 2018 2019 nVoV 2018'19 oVtg'oV Supplies GeNcov $ 154 571 $ 234 845 $ 1.563 1,9e4 $ 1,000 2750 $ 1.000 1750 $ 1.000 1750 0.00% '36.36% 0.00% 0.00% Expenditure Total $ rzo $ 1.079 $ 3.5*7 * 3,750 $ 2.750 $ c'rno '26.67% 0.00% Expenditure Detail - Supplies, Services, and Other Supplies includes miscellaneous office supplies. Services include travel, registration memberships, among others. Mayor - Planning Commission Account Number xctual BAu§et}J�c���^�.' 2016 con pn4octeu eom onm umn uueo 000�03.558.600.31�00 Supplies Office uOperating $ 154 $ zw $ 1.563 $ 1.000 $ 1`00 $ 1.000 Total Supplies 154 234 1.563 1.000 1.000 1.000 000o3.558,600.41.00 pnxovoo 000z3.558.600A3{0 Tave| Meals, mileage, parking for State xPAconference, training, meetings 000.03.558.600.49.00 M|vc xpAmemberships for 7 commissioners, plus miooexpenses 121 450 o*s 1.984 ~ ouo 2,250 onV 1.250 oOo 1.250 Total Services 571 u*o 1.98* 2.750 1.750 1.750 Total Supplies, Services and Other $ 725 m 1.079 $ a,u^r * 3,750 $ 2,750 m 2,750 69 70 DEPARTMENT: Maymr(03) FUND: General RESPONSIBLE MANAGER: David Cline Description DIVISION: Equity & Social Justice Commission FOND NUMBER: DOO POSITION: City Administrator The City of Tukwila will identify and implement strategies to involve more families and children of color and other diverse populations in school and community activities. These strategies include: + Promote education and understanding that oocepts, appreciates, and celebrates diversity, and sthmaS to eliminate prejudice and discrimination in the TuhVvi|8 CoDlnlVDity. + Provide infornnation, oznlrnunioation, and forums for better understanding and acceptance of ethnic and cultural differences. + Bring together all citizens for the purpose of making them feel welcome and part of the community. The Commission is made up of nine nnanlbana and one student representative appointed by the Mayor and confirmed by the City Council. Expenditure Summary Mayor - Equity & Diversity Commission Expenditures ByType Actual Budget Percent Change 2016 2017 Projected 2018 3018 2019 2030 2018-19 2019-20 aunnnen Services $ 4.643 * ros 2.624 $ 1'625 1.850 $ 1,625 8.050 u nUO :i500 $ oOn 5,500 -6923m -31.68% 0.00% 0o0% Expenditure Total * 4,643 $ 3'409 $ 3475 $ 9,675 $ 6,000 $ 6,000 'xr'VV% 0.00% Expenditure Detail - Supplies, Services, and Other Supplies includes miscellaneous office supplies. Services include program costs including grants, among Mayor - Equity and Social Justice Commission Account Number Actvm� `���'./���-v�ovuAv eom eon pnojvmnu cnm onx ono 2020 000.03.513.203.31.on Supplies Office oOperating m $ ren $ 1,200 $ 1.200 $ rn * 75 000o3.513.204o1M Supplies officem opemnoo ' 425 425 425 425 Total Supplies ' rxo 1.625 1,6e5 soo 000 000o3313.204.4/.00 Prof Svcs Translation neNnea.tour planning agency fees ~ onn 000o3,513.204.43.00Traw| 4,113 50 5,050 ' 000.01513.203.49.00 �ion �nui�uoi`�mxyoommimwvn nmo�movommn|uuinuVmn� ao us�w ' � uoo ' 2^OOo 0000 000n ' . 000.03.513.204.*9z0 moac-Registeuionv 500 - noO noo oon Total Services *.o*x o.ac* 1.850 8,050 5,500 5,500 Total Supplies, Services and Other * *.o*» $ ».^»» $ x.^ry * ».»/« $ 6,000 $ 6,000 71 72 DEPARTMENT: Mayor03\ FUND: General RESPONSIBLE MANAGER: David Cline Description DIVISION: Arts Commission FUND NUMBER: OOD POSITION: City Administrator The mission Ofthe Tukwila is to promote all artistic and cultural activities within the City for the ultimate enjoyment of visual and performing arts by our residents, businesses, and visitors. The Commission iemade ppVf5-7members and one student representative. Expenditure Summary Mayor -Arts Commission Expenditures ByType � ' ����Budget ' ~ ' - '. ^ � Percent _ -^ 2016 2017 Projected 2018 2018 2019 000V 201849 2019-20 Supplies Somioou $ 6,494 14.751 $ 11^454 14,449 $ 12.184 13.165 $ 9,035 16.965 $ 9.035 14,465 $ 9,035 14,465 V.Vn& '14J4m 0.00% 0.00% Expenditure Total $ 21,245 $ 25,903 $ 25,349 * 26,000 * 23,500 $ 23,500 -9.62m 0.00% Expenditure Detail - Supplies, Services, and Other Supplies include office supplies and small tools. Services include adverUeing, grants, repair & I Mayor -Arts Commission Actual 73 74 DEPARTMENT: Mayor 03 FUND: General RESPONSIBLE MANAGER: David Cline Description DIVISION: Park Commission FUND NUMBER: OOO POSITION: City Administrator The Park Commission's foremost responsibility is to advise the Administration and City Council recreation services and park -related issues, such as land acquioition, develop[nent, expansion, and The Park Commission typically reVevvsprDpoeadfeoeandohorgesandhosterneetingofornoiQhbVnscf proposed parks. Expenditure Summary Mayor - Parks Commission Expenditures oyType 2016 2017 pn4emad 3018 2018 2019 oVoV 201849 2019'20 Supplies oervices $ 483 1.903 $ 2,558 snU $ 1.503 748 $ 1.688 2.000 $ 1.6e8 1,600 $ 1.688 1.e00 nDo% -20u0% 0.00% 0.00% Expenditure Total $ 2/336 $ 3,208 $ e.251 $ 3,688 $ 3,288 $ 3,288 '10.85% 0.00% Expenditure Detail - Supplies, Services, and Other 8upp|kae includes miscellaneous office supplies. Services include memberships, registradono, among others. Mayor - Parks Commission Account Number A�ua ���������� � �������euueet? e016 Projected eon ono eom onn uoxo 000.03.576.800.31.00 Supplies -Office aOperating $ *ao $ 2,558 $ 1.503 $ 1'688 9 1.688 $ 1,688 Total Supplies *xx 2,558 1.503 1.688 1.688 1,688 000.03.576.800.49.00 w|,o Memberships, training and workshops 1^903 650 748 2,000 1.600 1.600 Total Services 1.903 000 r*x 2,000 1`.600 1.600 Total Supplies, Services and Other $ c'oxs $ 3,208 $ 2.251 $ 3,688 $ 3,288 y 3,288 75 76 DEPARTMENT: Maymr(03) FUND: General RESPONSIBLE MANAGER: David Cline Description DIVISION: Library Advisory Board FUND NWO0BEFtQOO POSITION: City Administrator The Library Advisory Board meets monthly on library issues and Se[V8S in an advisory n]|e to the City CUUOCU. Board members continually work for better library services for the citizens of Tukwila. The Advisory Board consists of 5-7 members and one student representative. Expenditure Summary Mayor, -Library Advisory Board Expenditures gyType Actual Budget Percent Change 2016 2017 Projected 2010 2018 2019 2020 20184e 2018-20 Supplies SeNreo $ 3.501 $ 3,528 c 3,076 250 $ 5.000 $ 4.000 $ 4.000 anoU% 0.00% ' Expenditure Total $ 3.501 $ 3,528 $ 3,326 $ *.ono $ *.000 $ 4,000 -20.00% 0.00% Expenditure Detail - Supplies, Services, and Other Supplies includes miscellaneous office supplies. Mayor - Library Advisory Board Account Number Actual Budget muo eon Projected 2018 enm emy uouu 000.03.572.210.31'00 summ,s omoem Operating $ 3,501 $ 3,528 $ 3,076 u 5,000 $ *.mm $ 4,000 Total Supplies 3.501 3,528 x/ono o`000 4,000 ^,000 000.03.572.210.4eo0 m/vc - zon - Total Services ' ' 250 ' ' ' 77 78 DEPARTMENT: Mayor 03 FUND: General RESPONSIBLE MANAGER: Christy O'Flaherty Description DIVISION: City Clerk FUND NUMBER: OOO POSITION: City Clerk The purpose of the City Clerk's Office is to provide to the public o point of access for specific municipal service functions asthe official records depository and archivist for the City. This office manages the retention and retrieval of all official City records, oversees administration of City Council meetings, including agenda coordination and development and preparation of the official minutes. Other responsibilities include oversight of the imaging system, automating legislative history,public records requests, providing reception and telephone answering services for the CihJ, recording contracts and agreements, issuing pet |iceneae, and providing notary services. City Clerk staff also participate in |000|, state, and international associations relative totheir positions. Expenditure Summary Mayor - City Clerk Expenditures ByType ' Aotu=| Budget ����������peroe ntCoange� 2016 2017 Projected 2018 2018 2019 uoon 2018-19 201e-28 aa|e000ummnon $ 363.556 z 3*3.063 $ 398,249 n 413,905 $ 432.667 $ 449,592 4.53% 3.91% Personnel Benefits 153,398 159,823 175,348 179.020 187,230 195790 4.59% *a7% Supplies 10.161 9.364 10,391 12308 12,308 12,308 0.00% 0.00% Services 168.4*3 142.e52 144'378 17*.220 158.220 158,220 '9.18% 0.00% Capital Outlays 56.700 ' - 0.00% 0.00% Expenditure Total p 750,259 $ 655,802 $ ruo'xso $ rro.^on $ 790,425 $ 815,910 1.41% uuz% ExoendituneDmtai|-Sa|aries and Benefits Salaries are based on actual costs for existing positions and include a cost of living adjustment per contract agreements. Mayor's Office - City Clerk Position Description 2018 FTE 2019 pTs 2019ovdgemd Salaries Benefits zVuo pTE 2020audoot,u Salaries Benefits City Clerk 1 1 $ 120.159 $ *2.514 1 $ 127.770 $ 45.001 Deputy City Clerk 1 1 74,849 28,017 1 79.048 29,541 AdminSupport Technician 1 1 61,580 37790 1 63.101 39.376 AdminGupport Coordinator 2 2 141^070 71.617 2 144.673 74.531 Extra Labor 35.000 7.292 35,000 7.341 Department Total 5 5 $ 432.6*7 * 187,230 5 $ 449.592 $ 195.790 79 Expenditure Detail - Supplies, Services, and Other Supplies include office and operating supplies. Services include City-wide advertising, postage,seouritv for records center, memberships, and registrations, among others. Mayor - City Clerk Account Number Actual Budget omo eon Projected zom 2018 emn uoz 000.03.514:300.31.00 Supplies Office uOperating all stations u 10.161 $ 9.364 $ 70.391 $ 12.308 m 12.308 $ 12,308 oo0.Vzm*zmo.31.90Supplies 'Central - ' - Total Supplies 10,161 9,36* 10.391 12,308 12,308 12,30 000o3.51*.300.41o0 PnxS\jcm- 2`096 2.136 4.499 6,000 6,000 6,000 000.03.514.300,*2u0 Communication ' Security Alarm for mm 540 570 suu GoU 000 Renomscxr 000.03.514.300.42.02 pvotaoe-City+wivapooton, 68.142 63,675 65,608 72.000 66,000 66,000 000.03.514'300.*&o0 Travel Travel towwo^` nMo.xRMx cnnf. . CIVIC uMMnand laser fiche tmen 2,032 2.271 3.451 5,500 5,500 5,500 000.03.514.300.44.00 Advertising ' City-wide 'advertising public hearings, call for bids, nFP/RFQa. auctions 4.55e 9,255 9,988 12.300 12,300 12.300 000.03.514.300.*5.00 Rental Postage meter lease onowam/»amwamupuraneo 5.748 12,085 12,032 10.100 10.100 10.100 000.03.51*.300.48.00 R&m- Copiers, laser fiche, agenda management program 48.535 22.534 24.823 24.710 24.710 2*.710 000.03.51+o00.49.00 m|xc Membersmpa/Trainino vymoA. 12.ee 2,389 4.742 6,200 6,200 6,200 ||mc.ARMA.King County Clerks 000.03.514,300.*9.01 Printing ' Business cards 61 121 100 100 100 100 000.03,514.300.*9.02 Microfilming, Imaging -City-wide micnm/ming, records purging, digitization mminmn|mnu000n 16,979 22,695 13.336 31.529 21.529 21.529 000.03.51+.300.49o4 Recorded Documents City-wide recording of documents 4.300 4.300 4.300 4.300 4.300 *.xno 000o3.514.300.49.08 Credit Card Fees pp|credit card fees 1.001 gou 929 881 e81 881 Total Services 166.*43 1*2.952 144.378 17*.220 158.220 158.ee0 000.03.514.300.64.00 Capital Lasemcmauporaues 56.700 ' Total Other 56,700 _ _ _ _ _ Total Supplies, Services and Other * 233,30* m 152.316 y 154.769 o 186,528 $ 170,528 $ 170.528 80 DEPARTMENT: Mayor (03) FUND: General RESPONSIBLE MANAGER: Derek Speck Description DIVISION: Economic Development FUND NUMBER: 000 POSITION: Econ. Dev. Administrator The Economic Development division of the Mayor's Office leads the City's business retention attraction and marketing efforts, facilitates commercial real estate development, and serves as a general liaison to the business community. The Division manages real estate related projects, urban renewal, tourism, and marketing. Expenditure Summary Mayor.. Economic Development Expenditures By Type Actual Budget Percent Change 2016 2017 Projected 2018 2018 2019 2020 2018-19 2019-20 Salaries &Wages $ 309,672 $ 253,078 $ 257,911 $ 259,962 $ 213,553 $ 217,922 -17.85% 2.05% Personnel Benefits 82,703 69,555 71,800 72,178 57,674 59,160 -20.09% 2.58% Supplies 1,194 464 462 1,000 1,000 1,000 0.00% 0.00% Services 46,048 61,128 41,428 48,750 41,000 41,000 -15.90% 0.00% Expenditure Total $ 439,617 $ 384,226 $ 371,600 $ 381,890 $ 313,227 $ 319,082 -17.98% 1.87% Expenditure Detail - Salaries and Benefits Salaries are based on actual costs for existing positions and include a cost of living adjustment per contract agreements. Mayor's Office - Economic Development Position Description 2018 FTE 2019 FTE 2019 Budgeted Salaries Benefits 2020 FTE 2020 Budgeted Salaries Benefits Economic Development Admin 1 1 $ 150,096 $ 39,035 1 $ 153,336 $ 39,957 Economic Dev. Liaison 1 0.5 55,457 17,847 0.5 56,586 18,411 Extra Labor 8,000 793 8,000 793 Department Total 2 1.5 $ 213,553 $ 57,674 1.5 $ 217,922 $ 59,160 81 Expenditure Detail - Supplies, Services, and Other Supplies include office and operating supplies. Services include marketing,advertising, memberships and registrations, among others. Mayor - Economk Development Account Number Budget eom 2017 Projected uom zom eom cnxo 000.03.558J00.31.00 avppnem-Onxo,endoperating m 1.194 $ 464 m 462 $ 1.000 $ 1.000 $ 1.000 Total Supplies 1.194 464 wa 1.000 1,00 1.000 000u1558.700.41.00 Prof Svcs Economic Development plan muiauve.SKcEDI: Small Business 16.100 *4,377 21`374 16,000 19,00 19,000 Development Center, Southside Alliance, Southcenter Marketing Partnersmp. Chamber mCommerce, mixcProf Svcs 000.03,55e.700,43.00na`e| Meals, mileage, and training 887 854 oue 6,000 ^.noo 4.000 000.03.558.700,44o0Advnrtismo Marketing info and materials 2.050 2,000 2,000 2,000 000o3.558.700.49�00 m|nc soon,Seattle/King County, webmu=improvements, NwProperties weunue.TuxmnBlvd 29.061 13.847 19.172 24.750 16.000 16,000 Total Services *x.o*o 61,1e8 w,*ux *o.rou 41,000 *1.000 Total Supplies, Services and Other $ *r.x*x $ 61.592 $ /w.ogo m 49,750 $ *2,00 $ *2,000 82 DEPARTMENT: Mayor (03) FUND: General RESPONSIBLE MANAGER: Rachel Turpin Description DIVISION: Attorney FUND NUMBER: 000 POSITION: Contract City Attorney The mission and primary function of the City Attorney's Office is to provide legal advice and counsel to the City Administration and City Council, to prosecute persons cited into Tukwila Municipal Court, to defend the City against claims and suits, and to approve contracts as to legal form. Expenditure Summary Mayor Attorney (Contracted) Expenditures By Type Actual Budget Percent Change 2016 2017 Projected 2018 2018 2019 2020 2018-19 2019-20 Salaries & Wages 2,508 $ 2,466 $ 6,297 $ 5,000 $ - $ - - - Personnel Benefits 224 222 572 455 - - - - Supplies 4,830 2,590 5,314 6,000 4,000 4,000 -33.33% 0.00% Services 523,163 659,635 859,781 721,730 706,730 706,730 -2.08% 0.00% Expenditure Total $ 530,725 $ 664,913 $ 871,964 $ 733,185 $ 710,730 $ 710,730 -3.06% 0.00% Expenditure Detail - Supplies, Services, and Other Supplies include office supplies. Services include instructor fees, travel, equipment replacement and O&M charges, membership, and registrations, among others. Mayor -Attorney (Contracted) Account Number Actual Budget 2016 2017 Projected 2018 2018 2019 2020 000.06.515.300.31.00 Supplies - Office $ 4,830 $ 2,590 $ 5,314 $ 6,000 $ 4,000 $ 4,000 Total Supplies 4,830 2,590 5,314 6,000 4,000 4,000 000.06.515.300,41.00 Prof Svcs - Public Records Request initiatke, courier and other services 36,819 9,164 6,194 10,000 10,000 10,000 000.06.515.300.41,01 Prof Svcs - Contracted attorney services 324,600 368,322 376,597 371,830 402,230 402,230 000.06.515.300.41.02 Prof Svcs - Prosecution services 150,966 180,000 183,600 185,400 162,000 162,000 000.06.515.300.41.03 Prof Svcs - Special matters 10,778 98,061 289,599 150,000 128,000 128,000 000.06.515.300.45.00 Rental - Water cooler rental - 2,862 1,387 2,100 2,100 2,100 000.06.515.300.48.00 R&M - Copier maintenance and repairs - - 1,400 1,400 1,400 1,400 000.06.515.300.49.00 Misc - Printing of specialized forms and other misc. expenses 1,226 1,004 1,000 1,000 1,000 Total Services 523,163 659,635 859,781 721,730 706,730 706,730 Total Supplies, Services and Other $ 527,993 $ 662,225 $ 865,095 $ 727,730 $ 710,730 $ 710,730 83 84 City of Tukwila Allan Ekberg, Mayor INFOR ATIONAL E ORANDU TO: Finance Committee FROM: Rachel Bianchi, Deputy City Administrator CC: Mayor Ekberg DATE: October 10, 2018 SUBJECT: Administrative Services and Funds 502 & 503 Proposed 2019/2020 Budgets ISSUE City departments are developing their proposals for the 2019/2020 biennial budget while also incorporating methods of Priority Based Budgeting (PBB). The 2019/2020bienniel budget will include general fund budgets allocated to programs. The City Council requested that individual departmental budgets be presented to its standing committees as they become available. BACKGROUND The Administration recently formed the Administrative Services Department to better support internal services in the City and cross department efforts that affect and include a variety of expertise, individuals and issues. The Administrative Services Department includes Communications, Community Engagement, Human Services and Human Resources, and combining them into one department provides additional support to all of these key City services. DISCUSSION Administrative Services Combining the various functions and services discussed above allowed efficiencies to be found, and the overall budget for 2019 is 3.7% less than what was budgeted for the functions in 2018. All positions are fully funded, including the currently vacant Human Resources Director. A process for filling this role is currently being developed and will be implemented in the near future. This budget keeps the City's commitment to providing superior Human Services to our residents and funds these programs at the same level as the last biennium, including the $50,000 per year increase proposed and passed by the Council in the 2017/2018 budget. Through a detailed Request for Proposal (RFP) process and deliberation by the Human Services Advisory Board, 34 programs were chosen for funding. Human Services funding continues to be prioritized for Housing, Wellness, Food Security and Support for Independence. Salaries and Benefits This department anticipates a decline in salaries and benefits in 2019 over the 2018 budget. 2020 should see an increase due to contractual obligations and changes in healthcare costs. Supplies and Services Supplies and services were reduced by 12.19% and 6.74% respectively. The largest portion of the reduction in services is due to the anticipated amount received for the Community Development Block Grant (CDBG) that funds the Minor Home Repair program. While the City budgeted $130,000 per year in the 2017/2018 budget, the funding did not come in at that level, and the current budget of $90,000 per year is more realistic. It is important to remember that CDBG funds are pass through dollars, most of which goes to the other partner cities that Tukwila partners with to administer this program. 85 INFORMATIONAL MEMO Page 2 Fund 502 This fund covers the City's self -insured healthcare plan. All of the anticipated costs are fully covered in this plan, including the IBNR reserve at more than 2.5 times the anticipated need each year in the biennium. Instead of looking at two to three years of data, the City has looked at the past ten years to better determine an approach to reduce plan overfunding and achieve balance between annual premium changes and maintenance of reserve levels. As such, the City will be contributing 5% per year to level out the fund accordingly. Fund 503 This fund covers the City's LEOFF I retiree self -insured healthcare plan. The budget has been reduced from the 2018 budgeted amount to better reflect actual expenses and is funded to the level recommended by the City's broker and actuary. RECOMMENDATION Staff is seeking the Finance Committee's feedback on the proposed Administrative Services budget and direction to forward it to the Committee of the Whole for consensus on October 22, 2018. ATTACHMENTS Proposed Administrative Services Budget Proposed Fund 502 — Self -Insured Healthcare Plan Budget Proposed Fund 503 — LEOFF I Retiree Self -Insured Healthcare Budget 86 IN:12018 Info Memos1Admin Services Budget Memo.doc Administrative Services Deputy City Admittistrt©r (1) Human Resources Director (1) Human Resources Analyst/Civil Service Examiner (1) uman Resourc Analyst (1) rrnan Resou Technician munity E agernent gager (1) Web Coma unications (1) Design Corns unications (1) Human Services Coordinator (1) Human Services Specialist 87 88 DEPARTMENT: Administrative Services 04\ FUND: General RESPONSIBLE MANAGER: Rachel Bianchi Description FUND NUK8BER:OOO POSITION: Deputy City Administrator The Administrative Services department provides oonnrnuniootiono, human aemic8e, oonlnnundv engagement and human resources services to the Tukwila community. The department supports the work ofother City departments iDthese efforts and leads inter -departmental efforts onavariety ofspecial issues and projects, including theCity'a Public Safety Plan. 2017-2018 Accomplishments � Implementation ofthe Public Safety Plan, including acquisition of property, facilities design and engineering, and mutual agreement with business owners, aswell as cOnlrnUAdy engagement onthe Plan's progress through open houses, online platforms and other methods. Strategic Goals 2, 4 & 5. ^� Continued to strengthen communications and community engagement efforts through expanded Community Connectors program, ongoing variety of communications platforms, SUCc8SSfU| high school internship program, and staffing of the Equity and Social Justice Commission. Strategic Goal 5. � Ensuring stronger alignment with the community through refresh of the [ity'eStrategic Plan, development and implementation of City Equity Rdicy, and Human Services Strategic Plan. � Supporting the most vulnerable and improving the community with @3O%increase hldirect Human Services supporting housing, independence, vocational support, VVeF8U physical and 0SDt@| health and food security; leveraging regional partnerships and other funds to benefit residents and the broader community. Strategic Goals 1, 2 & 5. 2019-2020 Outcome Goals � Continued implementation of the Public Safety Plan; Flna Station 51 and Justice Center substantially complete; ongoing community engagement around the Plan. Strategic Goals 2 4 & 5. � Additional communications o|ethornlS brought on|ine, use of translation and tranonreeUnn increased, ongoing implementation of the City Equity Policy. Strategic Goal 1, 2, 4 and 5. � Continue toimplement the Human Services Strategicplan, streamline intake processes, contracts and fn[nlS to allow for more time for direct services to residents, continue to leverage regional partnerships and outside funding to benefit residents and the broader community. Strategic Goals 1 2 & 5. 89 2O19-202OIndicators mfSuccess Continued implementation ofthe Strategic Plan Goals and City Equity Policy. Communications tools and vehicles are relevant, diverse and timely. Leverage |noa| and regional partnerships on behalf of the City's residents and guests. Department Detail Staffing and Expenditure by Program PROGRAMS FTE' BUDGET YEAR PERCENT Budget Budget Communications 1.58 238,329 12.3% 261,311 12.0% 9,64% Housing 1.03 230\486 10.9% 236,278 1I8& 2.51% Physical/Mental/Dental Well -Being 0\23 173,301 8.2% 174,495 8.0% 0.64% Labor Relations 0.7I 142,163 6.796 147,969 6.8% 4.00% Support for Independence 0.08 123,371 5.8% 123,839 5.7% 0.38% Minor Home Repair 0.18 116,085 59& 1I71767 5.4% 1.45% Public Safety Plan 0.53 95,975 4.5% 101,568 4.796 5.83% HRGenera| Administration O.56 88,622 4.2% 90\334 4.1% 0.80& C|assifcadon/Cumpensation 0.50 86,528 4.1% 90,135 4.1% 4.17% Recruitment 0.56 84781 3.9% 82,696 3.8% 1.22% Internal Communications 0.62 75,687 3.8% 82,954 3.0% 9.60& Performance Manage ment/Training 0.46 72,040 3.4% 73,244 3.4% 1.67% Community Engagement 0.28 68,646 3.3% 70,772 3.2% 3.10% Health &Safety 0'35 63,645 3.0% 65i183 IO% 142% Food Insecurity 0.13 63,394 3.0% 64,301 3.0Y6 1.43% Po|icyDeve[opnlent/Comp|iance 0.30 57,278 2.7% 58,710 2.7% 4.250 Civil Service Compliance 0.30 55i060 2.6% 55,733 2.6& 1.22% Benefit Plan Management 0.30 53,8I2 2.5% 55,906 2.6% 3.890 Accounts Payable/Budget Preparation 0.39 40,791 1.9% 48,522 2.2% 18.95% School District 0.30 41,600 2.0% 43,904 2.0% 5.54% Regional Collaboration 0.23 34,814 1.8& 36,310 1.70 4`30% Training 0.20 27,586 1396 28,862 1.3% 4.620 Government Relations 0.13 25,911 1.2% 27\482 1.3% 5.87% Equity 0.08 20,049 0.9% 20,854 10% 4.01% Tukwila Works 0.05 10,041 0.5% 10,626 0.5% 5.820 EmerQenc9Pneparedness/Response 0.03 5,884 0.3& 6,248 0& 6.19% PROGRAM TOTALS 10.00 2,I1I,510 100YC 2,178,952 1000 3,2% *Priority Based Budgeting was implemented beginning with the 2019 - 2020 biennium budget Therefore, nnhistorical data is available. 90 Program Descriptions Communications: Digital coDlOOUOiC@tiOOS include all digital forms of Oledim, such as the VVebSite. social 0ediG, video production, Channel 21. etc. Digital communications can be internal Or external. Also includes communications strategies targeted to the nnedio, the connnnunitv, and the public at large. Media/external communications work includes issuing press releases, the City pages Ufthe Tukwila Reporter, theCifV's social media pages, etc. Media/external CoOnDnUOiC8tiOns can be digital and/or print. H0USinq: Funding for and approval/referrals to agencies that provide administration of rent/utility financial assistance, shelter, or other housing assistance (including hygiene/clothing tangibles). Physical/Mental/Dental VVeU'Beinq[ Funding for and referrals to agencies that provide physical health, mental health and dental services. Labor Relations: Contrmct/col|ectiYebarga|ning negotiations. Connp|ainto, grievances, investigations. Support for Independence: Funding for and referrals to agencies that help people live independently, support empowered decision -making that focuses on stability and self-sufficiency. Minor Home Repair: Tukwila serves as the fiscal agent for the Minor Home Repair Program for the Cities of TVkvv||a. 8eaToo. Covington and Des Moines. On an annual boo|s. |uKVv||a applies for the Federal C[)BG funds on behalf ofthe four cities, that are distributed through King County. None of the cities are large enough to receive a direct allocation. Minor home repair assists very |om/ to moderate income homeowners with repairs addressing conditions such asminor plumbing and electrical issues, and health and safety repairs. Public Safetv Plan: In November 2016, Tukwila voters passed a public safety bond to fund three new fire stationo, fire apparatus for 20 years, and G justice center for police and courts. /n addition, the City is cUnlrnitdOg general and utility funds for o new public works facility. The purpose is to [8p|aQ8 aging facilities that no longer meet the functional, safety, and regulatory needs of our first responders, The last building is scheduled to be completed iO2022. HR General Administration: Administrative duties supporting the Human Resources department. C|asoifioetkon/Conopenea1ion:Job descriptions, rep and non -rep. Recruitment: Recruitment for non -Police and Fine. NeoGov. Internal Communications: |nfe[Da| cO00uOiCatOOS includes conlnOUniC@tOOS strategies targeted at City employees about internal projects andprUgnanls such 8s finance deadlines, technology updates, records management, etc., and how community facing programs and projects may affect day-t0-d3ywork iO different departments. Internal Communications can be digital and/or print. Performance MoneQernenL/TnaininQ: Tracking evaluations; record keeping. Training. CDmmu0itV Enqaqement: Community ConnectonG, future civic engagement projects. 7ukwi|a's Community Connectors Program improves outreach to communities historically underrepresented in civic processes by utilizing nnennbene from these communities to act as liaisons from their community to the City and civic processes. Health & Safetv: Accident prevention plan, safety plan. Employee injury/illness reports. Training. 91 Food Insecurity: Funding for and referrals to agencies that provide food assistance, creation/distribution of emergency snack bags distributed by Human Services. Policy Development/Compliance: Duties related to the development of Human Resources policies as well as ensuring compliance. Civil Service Compliance: Recruitment, testing and hiring for Police and Fire. Benefit Plan Management: Managing health, retirement and other benefits. Claims processing. Accounts Payable/Budget Preparation: Processing of invoices for payment and preparing and monitoring department biennial budget. School District: The City values the youth in our community, and desires that they succeed. Programs and partnerships with our local schools include the high school internship program, support for youth workforce development, and college/trade school scholarships, school based mental health support. Regional Collaboration: In addition to collaborating with other government entities, the City maintains close relationships and partnerships with nonprofit organizations, businesses, and other community groups in the region to provide services to our residents, businesses, and visitors. Training: Staff development training. Government Relations: The City works with many other government entities, including the Metropolitan Park District, the Port of Seattle, King County, tribal governments, state and federal governments. These relationships are important to maintain and require strong communication skills and knowledge of laws and regulations to be successful. Equity: The City has a strong commitment to equity in city government, and they desire that all residents, visitors and employees have the opportunity to reach their full potential, Societal, environmental, and legal factors, both historic and present-day, have resulted in inequitable access to opportunities and services for some individuals and groups of people. To that end, the City has formed an Equity Team that is open to all City employees interested in learning more about equity. The City formed the Equity and Diversity Commission in 1990, now named the Equity and Social Justice Commission. The City has also held several formal and informal trainings on equity issues. Most recently, the City adopted an Equity Policy, and is currently working on developing and implementation plan for that policy. Tukwila Works: Tukwila works is an online reporting tool that allows residents, businesses, visitors, and employees to report and track non -emergency issues through the City's website or via a smartphone app. Tukwila Works currently tracks the following issue types: Animal Control, Camping, Code Enforcement (both private and public property), Garbage/Debris, Graffiti, Illegal Parking, Overgrown Brush/Trees, Potholes, Rental Property Concerns, Speeding or Traffic Complaints, Stormwater/Sewer Issues, Traffic Signal/Traffic Sign Issues, Tukwila Parks issues, Other. Issues are sent directly to the appropriate City employee and tracked until the issue is closed. Emergency Preparedness/Response: Time spent preparing for and communicating with the public and employees about emergencies. 92 Budget Change Discussion: The Administrative Services Department is new in the 2019-2020 budget and was created out of the merger between an existing department (Human Resources) and a division of the Mayor's Office (Community Services and Engagement). There were no new staff added in the creation of this department. Salaries & Benefits COLA increases were applied to salaries, and benefits were adjusted to account for changes in healthcare and retirement. Supplies and Services Budgeted expenditures were reduced for various line items in an effort to bring them in line with actual expenditure levels. These reductions resulted in 12.2% and 6.8% decrease from the previous budget in supplies and services, respectively. Expenditure Summary Administrative Services Expenditures By Type Actual Budget Percent Change 2016 2017 Projected 2018 2018 2019 2020 2018-19 2019-2020 Salaries & Wages $ 829,539 $ 893,302 $ 867,689 969,965 $ 957,494 $ 1,005,702 -1.29% 5.03% Personnel Benefits 299,368 326,292 338,846 387,921 377,402 396,636 -2.71% 5.10% Supplies 31,957 19,403 27,780 27,205 23,888 23,888 -12.19% 0.00% Services 728,803 727,775 730,067 607,103 752,725 752,725 -6.74% 0.00% Department Total $ 1,889,669 $ 1,966,773 $ 1,964,382 $ 2,192,194 $ 2,111,509 $ 2,178,951 -3.68% 3.19% Administrative Services Expenditures By Type Actual Budget Percent Change 2016 2017 Projected 2018 2018 2019 2020 2018-19 2019-2020 Administration $ - $ - $ - $ - $ 207,345 $ 221,921 0.00% 7.03% Human Resources 647,426 656,847 646,447 728,083 693,636 720,910 -4.73% 3.93% Community SenAces and Engagement 1,242,242 1,309,926 1,317,936 1,464,111 1,210,529 1,236,121 -17.32% 2.11% Department Total $ 1,889,669 $ 1,966,773 $ 1,964,382 $ 2,192,194 $ 2,111,509 $ 2,178,951 -3.68% 3.19% 93 Expenditure Detail-Sa|ariesondBenefits Salaries are based on actual costs for existing positions and include a cost of living adjustment. Administrative Services Position Description ao/n prs 2019 Frs 2019Buugeteo samnus Benefits unuu pTs znznomugeteu Salaries Benefits Deputy City Administrator o 1 $ 150.730 $ 56,615 1 m 161.745 $ e0.176 Human Resources Director 1 1 133.48e 53,357 1 143.769 56,781 Human Resources Analyst 2 2 190,747 71.015 u 20*.484 7*.203 Human Resources Technician 1 1 73.605 32.574 1 75,018 33.774 Community Engagement Manager 1 1 103.229 43.08* 1 109.604 45.517 Program Coordinator O 1 e3.772 36,902 1 100.317 39.146 AgnninSupport Coordinator 3 2 141.e26 63.112 z 145.303 65.564 AgminSupport Specialist V 1 53,096 19.65* 1 5*.432 20.384 Program Manager 2 o n - Extra Labor 11,000 1.090 11.000 1.0e0 Expenditure Detail - Supplies, Services and Other Supplies include office and meeting Supplies, meals and refreshments for meetings; services include, trave|, subscriptions and membershipa, among others. Administrative Services Actual Budget pn4mutmd Account Name 2016 3017 2018 2018 2018 3020 Salaries $ 822699 $ 889.482 $ 861,460 $ 857.933 $ 840.494 $ 994.702 Extra Labor 6.840 3.810 6.223 11.500 11.000 11.000 FICA 59.728 04'943 65.240 70.752 73.260 78.995 Pension 80.384 102861 111.290 115.015 120'574 120.725 Industrial Insurance 2'585 2.545 2.703 3.803 3.605 3.956 Healthcare 140.072 156'144 159.527 198.251 179.962 188,961 Total So|aries& Benefits 1.128.908 1,219.594 1,206.536 1.357.886 1.334.896 1'482.339 Supplies $ 25.420 $ 19.403 $ 27.780 $ 21.705 $ 23.888 $ 23.888 Total Supplies 31.957 19.403 27.780 27.205 23.888 23.880 Professional services $ 542.241 $ 519.887 $ 552.651 * 587.045 $ 587.045 $ 567.045 Communication 27.160 19.658 31^809 40.050 40.000 40.000 Travel 4.105 8.044 5.509 7.500 6.500 6.500 Advertising 6.541 3,170 6.526 11.250 8.500 8.500 Operating leases 7.653 8.170 13.438 9.108 7,500 7.500 Repair and maintenance 2.790 2.994 18.287 17.500 9.230 9.230 Miscellaneous 138.304 165,871 101`866 154,650 113.950 113.950 Total Services 728'803 727'775 730.067 807.103 752,725 752'725 94 DEPARTMENT: Administrative Services (04) FUND: General RESPONSIBLE MANAGER: Rachel Bianchi Description DIVISION: Administration FUND NU88BER:000 POSITION: Deputy City Administrator The Administrative 8emioaa department provides oonnnnunioatone, human aamioea, community engagement and human resources services to the Tukwila community. The department supports the work ofother City departments intheooefforteand|eodainter-departnnanto|efforteonawahetvCfopecia| Expenditure Summary Administrative Services - Administration Actual Expenditure Detail - Salaries and Benefits Salaries are based on actual costs for existing positions and include a cost of living adjustment. Administrative Services -Administration Position oenvnnuov onu Frs en o prs 2019nuuueopu aa/anno Benefits oozn rrs oouoovuoe»eu oa/anwn Benefits Deputy City Administrator n 1 $ 150.730 y 56,e15 1 $ 1e1.745 m 60.176 oenamnontrvxa/ u 1 $ 150.730 n 56'615 1 $ 161.745 o 60'176 95 96 DEPARTMENT: Administrative Services (04) FUND: General RESPONSIBLE MANAGER: Rachel Bianchi Description DIVISION: Human Resources FUND NUMBER: 000 POSITION: Deputy City Administrator Human Resources provides internal support services in the areas of classification/compensation, benefit administration, labor and employee relations, civil service, recruitment and hiring, performance management, organizational development, training and professional development. Expenditure Summary Administrative Services - Human Resources Expenditures By Type Actual Budget Percent Change 2016 2017 Projected 2018 2018 2019 2020 2018-19 2019-2020 Salaries & Wages 403,941 $ 401,717 $ 381,199 419,405 $ 409,840 $ 429,301 -2.28% 4.75% Personnel Benefits 135,420 137,269 135,225 164,728 157,540 165,354 -4.36% 4.96% Supplies 9,337 12,861 8,083 11,017 7,700 7,700 -30.11% 0.00% Senrices 98,729 105,000 121,940 132,933 118,555 118,555 -10,82% 0.00% Department Total 647,426 $ 656,847 $ 646,447 728,083 $ 693,636 $ 720,910 -4.73% 3.93% Expenditure Detail - Salaries and Benefits Salaries are based on actual costs for existing positions and include a cost of living adjustment per contract agreements. Administrative Services - Human Resources Position Description 2018 FTE 2019 FTE 2019 Budgeted Salaries Benefits 2020 FTE 2020 Budgeted Salaries Benefits Human Resources Director 1 1 133,488 $ 53,357 1 143,769 $ 56,781 Human Resources Analyst 2 2 196,747 71,015 2 204,484 74,203 Human Resources Technician 1 1 73,605 32,574 1 75,048 33,774 Extra Labor 6,000 595 6,000 595 Department Total 4 4 409,840 $ 157,540 4 $ 429,301 $ 165,354 97 Expenditure Detail - Supplies, Services and Other Supplies include office and safety supplies, meals and refreshments for meetings; services include labor relations professional services, employee assistance prognam, public safety testing, software maintenance, equipment repair, travel, subscriptions and memberships, among others. Administrative Services - Human Resources Account Number ' Actual Budget umo 2017 Projected mnn oom umo uouo 000.04.51e.100.31.00 ouppn=s-nmce 000.04.518.100.31.02 Supplies safety 000.04,518.110.31.00 auppliey-Offineu^uopeou/no 000.0*-518.110.31.43 Supplies Meals and Refreshments $ sJna aoa 122 1.390 $ e,629 tnoo sro 1.554 $ 4.1e9 10* aay 3,392 $ 6,917 1.500 1,000 1.600 $ 5,500 1.000 mm 700 n 5,500 1.000 mm noo Total Supplies 9,337 12,861 8,083 11'017 7,700 7,700 000.04.518.100A1.00 Prof`�s,�|ao��imo� in`=�ug�mnu' ' ' and background check and /fees 000.0*.518.100.41.02 Prof Svcs General safety and training 000.0*.518.100.41.03 Prof Svcs Labor relations, negotiations/mediations for bargaining units and potential grievances and/or Civil Service hearings 000.04.518.100.*1n4 Prof Svcs Employee Assistance Program 000.0*.518.100/41o5 Prof Svcs wEosovoowwo= 000.04.518.100.42.00 Communication 'Postage � � � Voo.o^.s1e1oV�non n�v�| �e�u.pa,mnu.mi|��oe.�ou�no m,vVAPELm^mnompELeA 000.0*.518.100.44.00*uvert/»mg Advertising job openings 000'0*,518A00.+5.00 Rental nenta|a/|enaoa 000.0*.518.100.48o0 R&M Eden software, copier maintenance 000.0*.518.100.49»0 Mioo Citywide anti -harassment training onno*�xa�oU.4go� �i�� *nnua|momue�m»x�,vanuuo � � organizations' 000z4518.100.4902 miso Printing cvdepartment forms and new employee packets unn.04s1�1oO�noa �iso naoi��m�msmroom��noeuang � � training 000.0*a18,110x1.00 Prof Svcs Public Safety Testing quarterly fees, Promotional Testing Fees, Legal Fees 000.04.51e,110.44o0Auvexisino Advertising for non- oommisnioneu`lateral police and firefighters positions 0000�n�n��o�sno � Rental Room rentals and other expenses m,tesnnofor nu�oommiss |oneupoanmnn oou.m*s1e11o�000 ��o'�on��o��mo��muonm, � � Commissioners 34.676 800 10,108 8,790 a'sso swa 6.541 2,087 2,790 (160) ooG 123 598 20.578 1,650 ' 3,805 4'085 47,287 *.768 - 1' uo4 3.133 2,328 2.994 8,609 gru 2,395 20,252 �.ros am* 20'022 2,42e 39.8e3 6.801 9,500 so 1.35* 5,576 1.5e3 11.229 ' ono 2,000 20.184 751 30.000 2,500 25,000 9,075 9,500 oo 3,000 6,000 2.108 15.500 ' 1�oo 000 u`nno 22,500 usp a000 ' rso 30/000 1,000 e5.000 9,075 13.000 ' 2,000 3,500 soo 7,230 �nnn ' ' 2,000 20,500 aoon ' rnn 30.000 1.000 25,000 9,075 13,000 o`oon 3,500 000 7,230 � uno ' - 2,000 oo'ono ' 3,000 750 Total Services 98J29 105^000 121.940 132,933 118.555 118,555 Total Supplies, Services and Other o 108'066 m 117.861 $ 130.023 $ 143.950 $ 1e6.255 o 126.255 98 DEPARTMENT: Administrative Services (04) DIVISION: Community Services and Engagement FUND: General FUND |NUMBER: OOO RESPONSIBLE MANAGER: Rachel Bianchi POSITION: Deputy City Administrator Description The mission of Community Services and Engagement is to support the well-being of Tukwila's residents by assisting residents to access human aen/c8e; funding programs to address prioritized gaps and needs; leveraging community resources and partnerships; and working regionally to generate solutions that contribute to a thriving community. The office also manages a Minor Housing Repair program. The Division is also responsible for ensuring accurate, tiDl8|y, and effective cOmnOUOic@UoOs with Tukm/|a'sresidents, businesses, visitors, and employees, aSwell as the media. The Community Services and Engagement supports every City department to inform stakeholders of key issues and eNants, and to help find and tell the great stories within the City of Tukwila. Serving a diverse community, the Division ensures o broad use of communication methods and encourages two-way communications and feedback, with the goal of encouraging a true conversation within our community. Expenditure Summary Administrative Services - Community Services andEngagement Expenditures nvType Actual aouovt pxrc»rChange� zmo cmr Projected owo mxo ony 2020 2018-19 2019-20e ua/aoao& Wages Personnel eenefits Supplies oewms m 425,598 1e3,949 22.621 630,075 $ 491,585 * 18e.024 e.542 622,775 486,4e 203,622 19,6e7 608,127 $ so'oso 223.193 16,188 674,170 $ 396/923 163,247 16.188 634,170 $ 41*e5e nn.`or 16.188 e34.170 -27y1% -26.86m nzmm 's,om 4.47% 4.81% 000m 0.00% Expenditure Detail - Salaries and Benefits Administrative Services - Community Services and Engagement Position Description 2018 pTs on y rTs omoouusoteu aamnrn Benefits zuzo rTs uncoouuyptou Salaries Benefits Community Engagement Manager 1 1 $ 103,229 $ 43,0e4 1 $ 108.604 $ 45.517 Program Coordinator 0 1 93.772 36.902 1 100,317 39.146 adminSupport Coordinator 3 z 141.826 63.112 2 145.303 65,564 Admin Support Specialist o 1 53.096 19,654 1 54.432 20.384 Program Manager z o 0 Extra Labor 5.000 496 5,000 496 Department Total o s $ 396,923 $ 163.247 a $ 414.e56 $ 171.107 99 Expenditure Detail — Supplies, Services and Other Administrative Services - Community Services and Engagement Account Number Actual Budget 2016 2017 Projected emn 2018 201e 2020 000.03.518.110.31.00 auppoes-omceuopenmmu 000.03.518.110,35.00 oupr|u=-wumom aermceo 00003.557.201.31o0 Small Tools & Minor Equipment Video equipment, etc. $ 15.017 6,532 1.072 $ 4,914 - 1.e28 m 14.197 - 5,500 y 9,000 5,500 1.688 $ 10.688 5,500 y 10.688 ' 5,500 Total Supplies 22.621 6,5*2 1e,697 16.188 16.188 16.188 00o03.518.110�1.00 Prof Svcs 'vvousueassistance 000�03.518.110.42.00 nommunication-pootoge.tra^s/at/uo' banners, etc. 000.03.51e.110.*3.00 Travel -Mnneo*,parking, other travel for events 000.03.518.110.44-00 Advertising Tukwila Reporter 000.03,518J10.45.00een,al Video equipment 000.03.518.110,48.00 R&M 'M|aoequipment ayneeded 000.03.518A10.49.00 M/ao-Memberships, training and mmmexops onnoau1o1�owm.n1 xxioo,�umummmpo uv�xonu � ' � � ' subscriptions 000.01518.110.49z3 Miau Printing and Binding 000.03.518.110.49o5 M|mc'Registrations 000.03,557.201.41.00 Povavca-mmvnanvnanouefena|: o,|oio 3,250 27.168 a'eou 3.916 - 15.537 mO 5,95e 590 *on.oeo u*a ono 114.092 ao`ras 19.6e8 6.792 ua 3,057 - 20.718 112 2.920 408,932 18 407 ' 129,385 30.424 31.75e 3/626 sso 11.845 7.038 10.364 2,000 ^ 1.783 423.470 sze 4,530 000 79,309 35,000 *o,ano *,Vun 5,000 4.000 2.000 5,000 e`oon - 2.000 433.*70 oon 4,700 ono 130.000 35,000 40.000 *.000 5,000 4.000 2,000 5,000 8,000 ' 2,000 433.470 000 4,700 000 90,000 35,000 40,000 4,000 5,000 4.000 2,000 5,000 8,000 - 2,000 433.*70 oon 4.700 000 90,000 lines, capacity uuoumn; Positive and Healthy Relationships: mental health onunoennu, substance abuse, sexual abuse, family support services; Support for so/naonmiono/` aging in p|are, legal support eviction prevention, neighborhood legal clinics; Safety Net: homeless shelters, domestic mmencusupport services, food banks, medical, dental, financial eviction prevention. 000.03,557.201.43.00 Travel - Parking for various meetings regional and sub -regional 000o155r.201.49z0 Mino-Asoociativnu. emiu,ran^oa, professional development, translation, childcare onOonn�r�Vo�n01 � � � ' Misc-yumenSormcesComm|osiunmtgo. food, program registrations, materials 000.03,557.202.*e.01 Miuc-oDoGpass through funding for minor home repair program Total Services 630,075 622.775 608^127 67*.170 634.170 e34^170 100 DEPARTMENT: Finance FUND: Self Insured Healthcare Plan RESPONSIBLE MANAGER: Peggy McCarthy Description POSITION: Finance Director This fund accounts for the City's self -insured healthcare plan. This fund receives contributions on behalf of the employees through pnamkJ0s charged to their respective organization units. Healthcare cJohno, program administrative fees and a Wellness Program are expensed in this fund. 2017-2018/\cconlp|jmhnmenty + Made changes in funding level to reduce plan overfunding and achieve balance between annual premium charges and maintenance of reserve levels. Strategic Goal 4 2019-202 Outcome Goals * Monitor fund balance to ensure adequate balance between annual premium charges and maintenance ofreserve levels. Strategic Goal 4 + Implement new State paid family leave act. Strategic Goal 4 2019-2020 Indicators of Success * A premium structure that adequately funds the plan and maintains o smooth and predictable premium trajectory kS achieved. Strategic Goal 4 101 Revenue and Expense Summary Self Insured Healthcare Plan - Actual Budget Percent Change 2016 2017 Projected 2018 zOm 2019 uozn 2018-19 2019-20 Operating Revenue Employer Tma conmuvuvnv * 5.28e,5*9 $o.7cq.*en $o.7sn.om *e.4zw.4nn $ 6,157.653 $o.4no.soo -4.8*% o.»om Employee Contributions 138'033 114,2+* 105,E46 77.000 349.024 366.399 353'28% 4.98% Employee Benefit Programs 2.344 1.582 1.280 1.200 1.200 1.200 0'00% o.»o% Investment Earnings 22.288 aa'w*z 56,246 96,000 55,995 56.27* -41'67% V,o»% Total Operating Revenue 5.451.21* 5,900,960 5.926.406 6.648.605 6.563.872 6,889,436 ,1,27m *yx% Operating Expenses Self -insured Medical Claims x.n*o,eoo 4.009.657 3.792'41e 4.+24.000 4.353.129 4./23.375 '1.60% 8.51m Dental Claims *03.73e 584.822 528.631 583.978 567.061 590.878 e.an% 4.20% Prescription Claims 1.123,821 1.048.018 1`000.331 1.0e.400 1.007.556 1.12*'*32 -7.09% 11.60m Vision Claims 32.726 28.120 13.182 32,300 30^777 31.8*4 -4.72% 3.50% Stop Loss Reimbursements (105.351) (68,255) (1*3.695) (75.750) ' - 0.00% 0.00% TPA .^uminFees 203,538 158.e95 131.828 237.200 166.070 169.381 -29.ee% z.o«% sx^*me Loss Premiums 379.705 385.397 *02,642 569.350 482.e07 51e.500 '1*.45% 7.60% mmRadjummem - ' 17.750 117.750 48.900 48,700 -58.47% u.*1m Profeaeionm|aeNcma 27,777 28.076 16.105 32.000 e5.199 35,600 166.25% '58.22% Miscellaneous 3,013 *.891 3.850 7.000 2.204 2,268 -68.51% u.y»% vve||nevo Program 5.703 22.526 18.000 18.000 m'nnn 18.000 o.V«% ».on% Total Operating Expenses 5,817,626 e'202.2*7 5.733,543 7.025.228 6.761.703 7.2e3.998 -3.75% 7.43% Indirect cost allocation 120,703 123.117 125'579 125.579 142,e59 14e.106 13.84% aanm Total Expenses 5,938.329 6,325.364 5.859.122 7,150.807 6,904.662 7�12,104 -3.44m 7.35m Beginning Fund Balance 1,981.e39 1.494.824 1.0/0.420 2.341.e27 1.137'70* 796.914 -51,48% -29.95m Change jnFund Balance (487.115) (424,404) 67.284 (502.202) (3*0.7e0) (522.668) -32.14% 53.37m Ending Fund Balance $ 1.*94.824 $tom.400 $1^137,704 $1.n^c.7cs m 796,91* $ 27*.247 -56.75% -65.5e% unmxmnteu 1.494.824 1,070,420 1,137,704 1,842,725 796.e1* 27*247 -56.75% *5.59% mwRrene^e 1,858,250 1,858,250 1,533750 2,186,250 1,656,000 1.777750 -2*.25m 7z5w 102 Expenditure Detail - Benefits and Services Employee benefits costs include medical, vision, and dental claims for all employees and dependents. Services includes broker fees, other healthcare plan fees, and Wellness program costs. Self Insured Healthcare Plan Account Number Actual Budget 2016 2017 Projected 2018 2018 2019 2020 502.00.517.370.25.00 Benefits - Self insured medical claims $3,542,958 $4,009,657 $3,792,418 $4,424,000 $4,353,129 $4,723,375 502.00.517.370.25.01 Benefits - Dental claims 603,736 584,822 528,631 583,978 567,061 590,878 502.00.517.370.25.02 Benefits - Prescription claims 1,123,821 1,048,018 1,000,331 1,084,400 1,007,556 1,124,432 502.00.517.370.25.03 Benefits - Vision claims 32,726 28,120 13,182 32,300 30,777 31,854 502.00.517.370.25.04 Benefits - Stop loss reimbursements (105,351) (68,255) (193,695) (75,750) - - 502.00.517.370.25.05 Benefits - Prescription fees - - - - - - 502.00.517.370,25.06 Benefits - TPD Admin fees 203,538 158,995 134,328 237,200 166,070 169,391 502.00.517.370.25.07 Benefits - Excess loss premiums 379,705 385,397 402,642 564,350 482,807 519,500 502.00.517.370,25.10 Benefits - IBNR adjustment - - 17,750 117,750 48,900 48,700 Total Benefits 5,781,133 6,146,754 5,695,587 6,968,228 6,656,300 7,208,130 502.00.517,370.41.00 Prof S \.cs - Broker fees 27,777 28,076 16,105 32,000 85,199 35,600 502.00.517,370.49.00 Misc - Other healthcare plan fees 3,013 4,891 3,850 7,000 2,204 2,268 502.00.517.900.49.01 Misc - Wellness program 5,703 22,526 18,000 18,000 18,000 18,000 Total Services 36,493 55,493 37,956 57,000 105,403 55,868 Total Benefits and Services $5,817,626 $6,202,247 $5,733,543 $7,025,228 $6,761,703 $7,263,998 103 This page intentionally left blank 104 DEPARTMENT: Finance FUND: LEOFF I Retiree Self -Insured Healthcare Plan RESPONSIBLE MANAGER: Peggy McCarthy Description DIVISION: N/A FUND NUMBER: 503 POSITION: Finance Director This fund accounts for the City's self -insured healthcare plan for Law Enforcement Officers and Fire Fighters (LEOFF I) retirees. This fund receives contributions on behalf of retired LEOFF I employees through their respective organization units. Healthcare claims and program administrative fees are expensed in this fund. 2017-2018 Accomplishments • Optimize use of Medicare insurance coverage to manage plan costs. Strategic Goal 4 2019-2020 Outcome Goals • Continue to analyze and revise funding structure to achieve a smooth and predictable premium trend. Strategic Goal 4 2019-2020 Indicators of Success • A smooth funding trend is achieved. Strategic Goal 4 • Reserves levels are maintained. Strategic Goal 4 • Costs are managed and stabilized. Strategic Goal 4 105 Revenue and Expense Summary LEOFF 1 Self Insured Healthcare Plan Actual Budget Percent Change 2016 2017 Projected 2018 2018 2019 2020 2018-19 2019-20 Operating Revenue Employer Trust Contributions 630,444 253,445 250,336 265,000 265,000 265,000 0.00% 0.00% Investment Earnings 569 (5,621) 2,217 3,340 1,533 1,541 -54.10% 0.52% Total Operating Revenue 631,012 247,824 252,553 268,340 266,533 266,541 -0.67% 0.00% Operating Expenses Self -Insured Medical Claims 164,120 164,645 164,929 265,000 181,401 189,201 -31.55% 4.30% Dental Claims 25,293 36,832 47,599 36,040 35,986 37,641 -0.15% 4.60% Prescription Claims 131,386 104,840 95,748 169,600 114,048 125,339 -32.75% 9.90% Vision Claims 5,110 5,481 8,073 8,480 6,193 6,324 -26.97% 2.12% Stop Loss Reimbursements 67,395 - - - - - 0.00% 0.00% TPA Admin Fees 39,918 15,744 15,678 21,200 16,682 17,017 -21.31% 2.01% Excess Loss Premiums 19,515 16,493 6,436 26,500 26,500 26,500 0.00% 0.00% Long Term Care Insurance 9,881 11,555 14,840 14,840 23,891 25,086 60.99% 5.00% IBNR Adjustment - - 8,750 8,750 1,500 600 -82.86% -60.00% Retiree Medical Reimbursement 10,025 24,545 6,557 20,000 19,555 20,555 -2.23% 5.11% Retiree Medicare Reimbursement 33,628 33,512 39,957 33,000 33,000 35,816 0.00% 8.53% Professional Services 6,340 4,095 2,689 6,000 6,499 4,734 8.32% -27.16% Miscellaneous 250 - 500 500 500 500 0.00% 0.00% Total Operating Expenses 512,861 417,740 411,756 609,910 465,755 489,313 -23.64% 5.06% Indirect cost allocation 11,408 12,549 13,804 13,804 - - 0.00% 0.00% Total Expenses 524,269 430,289 425,560 623,714 465,755 489,313 -25.33% 5.06% Beginning Fund Balance 775,734 882,478 700,012 872,246 527,005 327,783 -39.58% -37.80% Change in Fund Balance 106,744 (182,466) (173,007) (355,374) (199,222) (222,772) -43.94% 11.82% Ending Fund Balance $ 882,478 $ 700,012 527,005 $ 516,872 $ 327,783 $ 105,011 - 6.58% -67.96% Unrestricted 882,478 700,012 527,005 516,872 327,783 105,011 -36.58% -67.96% IBNR reserve 146,250 184,250 157,250 156,500 158,750 160,250 1.44% 0.94% 106 Expenditure Detail - Benefits and Services Employee benefits onata include medical, Vision, and dental claims for LE{}FF | members. Services includes broker fees and other healthcare plan fees. Account wumue, Actual Budget zmn 2017 Projected 2018 2018 201e 2020 503.00.517.200.25z0 Benefits ' Self -insured medical mdental $ 164.120 $ 1**.6*5 $ 1e:.929 $ 265.000 $ 181.401 $ 189.201 503.00.517,200.25.01 aenems-oentmmmima 25,293 36.832 *7.599 ne.n^o 35.e86 37.641 souooa17.uoUoouBenefits - Prescription claims 131.386 10*.840 95.748 1e3.600 114,0*8 125.339 503.00.517.200.25o3 eonomo-vininnc|ohna 5.110 5,481 8,073 8.*e0 6.193 6,324 nnn.00.o1r,2oo.cs.cwBenefits - Stop loss reimbursements 67.3e5 ' - - ' ' 503.0u517.20U5.05 Benefits ' Prescription fees - - ' ` ' - 50100.517.200.25.0e Benoots-Tpxodminfeon 3e.81e 15.744 15.678 21,200 16.682 17.017 503.00.517.200.25.07 Benefits Excess loss premiums 1e.515 16.493 6.436 26,500 26.500 26.500 503.00.517.200.25.08 eononta Long term care 9.881 11,555 14.8*0 1*.840 23.891 e5.086 503.00.517.200.25.10 oenefity-mwnsdjustm=nt ' - 8,750 8,750 1.500 soo 503.00�517.200.25.20 Benefits - Medical, dental, life, optical 10.025 24.5*5 6.557 20,000 1e.555 20,555 503.00.517�200.25.e1 Benefits ' Medical, dental, life, optical 33.e28 33.512 39,957 33.000 33,000 35,81e Total Benefits 506,271 4/3.645 408.567 603,410 458.756 48*.079 50100.517.200.41.00 Prof nv`o'Broker fees 6.340 4.0e5 2,689 6,000 6.49e 4'734 503.00.517.200.*e.00 M|ao'Plan document fees 250 ' 500 oVo ono oon Total Services 6,590 *.oys 3,189 6,500 6,999 5.234 Total Benefits and Services $ 512,861 V *17.740 $ 411,756 $ 609.910 $ 465.755 $ 48e.313 107 This page intentionally left blank 108