HomeMy WebLinkAboutFS 2011-08-11 COMPLETE AGENDA PACKETCity of Tukwila Distribution:
K. Hougardy
Finance and Safety
3. Hernanez
D. Robertson
Committee
A. Ekberg
Mayor Haggerton
D. Cline
O Kathy Hougardy, Chair
P. McCarthy
O Joan Hernandez
C. o'Raherty
S. Kerslake
O Dennis Robertson
K. Matej
Please note earlier start time this week :00 PM. 4
AGENDA
TUESDAY, NOVEMBER 8 2011
CONFERENCE ROOM #3,,4:00 PM
Item Recommended Action Page
1. PRESENTATION(S)
2. BUSINESS AGENDA
a. A proposal regarding Rock 'n' Roll Marathon sponsorship.
Katherine Kertzman, Tourism Manager
b. A resolution adopting the procurement card (PCard)
process.
Craig Zellerhoff, Fiscal Coordinator
c. Tax Levy Legislation:
(1) An ordinance levying general taxes.
(2) An ordinance increasing the tax levy by 1
Peggy McCarthy, Interim Finance Director
d. An ordinance amending the 2011 -2012 Budget.
Peggy McCarthy, Interim Finance Director
e. A Memorandum of Understanding with Washington
Cities Insurance Authority (WCIA) regarding the City's
deductible.
Peggy McCarthy, Interim Finance Director
f. A proposal for additional Police staffing.
Mike Villa, Police Chief
3. ANNOUNCEMENTS
4. MISCELLANEOUS
a. Forward to 11/14 C.O.W. Pg.1
and 11/21 Regular Mtg.
b. Forward to 11/14 C.O.W. Pg.5
and 11/21 Regular Mtg.
(1) Forward to 11/14 C.O.W. Pg.59
and 11/21 Regular Mtg.
(2) Forward to 11/14 C.O.W.
and 11/21 Regular Mtg.
d. Forward to 11/28 C.O.W. Pg.67
and 12/5 Regular Mtg.
e. Forward to 11/14 C.O.W. Pg.79
and 11/21 Regular Mtg.
f. Forward to 11/14 C.O.W. P
and 11/21 Regular Mtg.
Next Scheduled Meeting: Tuesday, November ZZ, 2011
S The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206 433 -1800 or (tukclerk @tukwilawa.gov) for assistance.
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City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Katherine Kertzman, Tourism Marketing Program Manager
DATE: October 18, 2011
SUBJECT: Rock Roll Marathon Sponsorship Proposal
ISSUE
Seattle Southside Visitor Services has the opportunity to be an Official Sponsor of the Rock `n'
Roll Seattle Marathon &'h Marathon in conjunction with the Seafair festival in 2012 for $50,000.
BACKGROUND
As you know, the City completed its three year contract with the Competitors Group at the
conclusion of this year's marathon, officially named the Dodge Rock'n' Roll Seattle Marathon
1/2 Marathon. On September 20 2011, staff met with Beth Knox, President and CEO of
Seafair and Elizabeth O'Brien, Vice President of the Competitors Group, to discuss the City's
sponsorship in the future.
Beth and Elizabeth both expressed great gratitude for the City's financial support and most
importantly for the enthusiasm and dedication the City of Tukwila elected officials and staff have
shown these past 3 years. Both sincerely thanked the elected City elected officials and staff for
making this event a reality for our region.
As much as both organizations appreciate Tukwila, they have decided to change the course to
start and end in Seattle Center. The new course accomplishes several goals for the Competitor
Group and Seafair.
First, as you may remember, the course used these past 3 years encountered a bottle neck
under the 1 -90 Bridge, limiting the maximum number of runners the course could accommodate.
The new course will enable the race to increase the number of participating runners to generate
greater economic impact for their organizations and the region.
Second, the Competitor Group spent over $100,000 to shuttle runners from downtown Seattle to
the start line in Tukwila. The new course will save them that expense. Runners will instead be
encouraged to ride Link Light Rail and /or the Monorail before and after the race. Even though
the City's $150,000 sponsorship from lodging taxes basically covered the shuttle expense and
special event permit (for staffing of police, fire, etc.) the race was still limited from growing. In
addition, the City's lodging tax fund would run out of money in less than three years if we had
kept the same sponsorship level so we couldn't maintain or increase our sponsorship.
Although this change will change Tukwila's role in the marathon, Seattle Southside Visitor
Services has the opportunity to be an Official Sponsor of the Rock `n' Roll Seattle Marathon &'h
Marathon in conjunction with the Seafair festival in 2012 for $50,000 and market all Southside
Cities as an ideal home base to stay and play before and after the race.
INFORMATIONAL MEMO
Page 2
We expect to continue to see hotel stays in the Southside for the marathon. Almost all
Southside hotels offer their overnight guests complimentary shuttle services to and from Sea-
Tac Airport. This will make it possible for hoteliers to drop off and pick up runners at the light rail
station "Kiss and Ride" in SeaTac. This transportation option will help all Southside cities remain
an ideal location for Rock "n" Roll Marathon runners to stay. In addition, as the race grows,
more runners mean more overnight stays and more overnight stays mean more visitors
spending and more business for everyone.
2011 Estimated regional economic impact data includes:
Direct Economic Impact: $21,177,000
Induced Economic Impact: $13,765,000
Total Economic Impact: $34,942,000
22,310 TOTAL room nights, and 22.8% of people said they stayed in Tukwila. This
would be approximately 5,087 room nights in Tukwila.
ANALYSIS
Seattle Southside will receive the same promotional benefits that the City of Tukwila received
for the past three years as the start line City sponsor for 1/3 the cost.
On Sept. 19, 2011, this item was discussed at the Tukwila Lodging Tax Advisory Committee
meeting. Committee members recommended staff negotiate a more cost effective sponsorship
with the Competitors Group and Seafair while maintaining the Cities ability to entice RnR
runners to stay overnight in Tukwila. This proposal is a one year sponsorship. Staff will evaluate
the economic impact of this sponsorship following next year's race given the new start line to
confirm total number of room nights in the City of Tukwila and Seattle Southside as a region.
Budget impacts: There is no additional budget request for this item. The cost for this work is
included within the Council approved 2011 -2012 Budget.
The sponsorship will be paid for using by the lodging tax dollars in the Seattle Southside
program budget under joint marketing projects; "Joint Marketing Projects" account that is funded
by the 4 SSVS participating cities: Tukwila, SeaTac, Kent and Des Moines. Tukwila's portion of
the sponsorship fee for one year is $16,500.
Since this is a tourism program item, the costs will be paid out of lodging taxes, not the City's
general fund.
RECOMMENDATION
The Council is being asked to authorize the Mayor to sign a sponsorship agreement with
Competitors Group for the 2012 Rock "n" Roll Seattle Marathon Marathon on behalf of
Seattle Southside Visitor Services in the amount of $50,000.
The Council is also asked to consider this item at the November 14, 2011 Committee of the
Whole meeting and subsequent November 21, 2011 Regular meeting.
ATTACHMENTS
Official Sponsorship proposal
WA2011 Info Memos- CoundhRock n Roll Marathon 2012 doc.docx
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Rock 'n' Roll Seattle
Marathon 1/2 Marathon
June 23, 2012
OFFICIAL SPONSORSHIP PROPOSAL
SEATTLE SOUTHSIDE VISITOR SERVICES Official Sponsorship Benefits
As an Official Sponsor of the Rock 'n' Roll Seattle Marathon Marathon, SEATTLE SOUTHSIDE VISITOR
SERVICES will receive the following promotional benefits:
Sponsor Designation
SEATTLE SOUTHSIDE VISITOR SERVICES will be an Official Sponsor of the Rock 'n' Roll Seattle
Marathon Marathon, and may use this designation in its advertising and promotion. *All
promotional programs and advertisements using the Rock 'n' Roll Seattle name and /or logo must
have prior approval from Competitor Group.
Event Advertising
SEATTLE SOUTHSIDE VISITOR SERVICES name and /or logo included in select event advertising.
SEATTLE SOUTHSIDE VISITOR SERVICES will receive a full -page, 4 -color advertisement in the Official
Event Guide.
SEATTLE SOUTHSIDE VISITOR SERVICES will be identified as an Official Sponsor on the Rock'n' Roll
Seattle website, and will receive a link to the SEATTLE SOUTHSIDE VISITOR SERVICES website.
Opportunity to provide tourism content for Weekend Activities and /or Area Attractions page of the
Official Website. CGI to manage website; SEATTLE SOUTHSIDE VISITOR SERVICES to provide content.
Print Promotional Material
SEATTLE SOUTHSIDE VISITOR SERVICES name and /or logo on all Seattle race specific full -color
promotional brochures distributed through sporting goods retailers, athletic clubs, grocery stores
and race expos throughout the U.S.
SEATTLE SOUTHSIDE VISITOR SERVICES will receive the opportunity to place a blurb in two e-
newsletters sent to all registered participants.
SEATTLE SOUTHSIDE VISITOR SERVICES name and /or logo on Final Information e- mailed to all
registered participants
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Event Signage
SEATTLE SOUTHSIDE VISITOR SERVICES will receive banner opportunities at the event, including the
following:
Two (2) logos on banners at the Start Line
Six (6) logos on banners at the Finish Line
Expo Display /Sampling Opportunities
SEATTLE SOUTHSIDE VISITOR SERVICES will receive a 10'x 20' booth space at the two -day Health
Fitness Expo.
SEATTLE SOUTHSIDE VISITOR SERVICES may insert promotional items or literature in 28,000 goodie
bags distributed to every participant, and may insert promotional literature into the virtual volunteer
goodie bags.
Media /Race -Day Promotion
SEATTLE SOUTHSIDE VISITOR SERVICES will receive verbal mentions by announcers throughout the
race.
Hospitality
SEATTLE SOUTHSIDE VISITOR SERVICES will receive corporate entertainment and hospitality
opportunities at the event, including:
o Ten (10) Entries for the Marathon or Half Marathon.
Four (4) individual invitations to VIP Reception. RSVP required.
Six (6) VIP credentials for Start /Finish Hospitality.
Room NightPromotion
Competitor Group will partner with SEATTLE SOUTHSIDE VISITOR SERVICES to create a special Seattle
Southside room night promotion.
Competitor Group will work with the SEATTLE SOUTHSIDE VISITOR SERVICES to coordinate the
details of the promotion.
Competitor Group will create a page within the event website that will promote featured
destinations, area hotels and sample itineraries for each destination. SEATTLE SOUTHSIDE VISITOR
SERVICES may provide photo galleries and /or video footage for each destination.
Sponsorship Investment
Sponsorship fee of $50,000.
SEATTLE SOUTHSIDE VISITOR SERVICES will promote Rock `n' Roll Seattle to the VISITOR SERVICES's
current database of consumers. The race will be included in all cross promotional opportunities and
calendar of events, where appropriate.
SEATTLE SOUTHSIDE VISITOR SERVICES will place Rock 'n' Roll Seattle event logo and link on VISITOR
SERVICES website. As available and appropriate, VISITOR SERVICES will provide space on website for
editorial content and tile /banner ads for the event. CGI to provide content and creative as needed.
El
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Craig Zellerhoff, Fiscal Coordinator Payroll and Accounts Payable
DATE: November 1, 2011
SUBJECT: A Resolution adopting a Procurement Card (PCard) Program
ISSUE
The State Auditor's Office reviewed the City of Tukwila's PCard Program during the 2010 CAFR
Audit and found all aspects of the program to be in place with the exception of Council approval
pursuant to RCW 43.09.2855.
RCW 43.09.2855 states "The legislative body (Council) shall adopt a system for:
The distribution of the credit cards;
The authorization and control of the use of credit card funds;
The credit limits available on the credit cards;
Payment of the bills; and
Any other rule necessary to implement or administer the system under this section
BACKGROUND
The PCard Program was implemented City wide in September 2010. At the time of
implementation the City of Tukwila was already using credit cards for payment of certain
purchases by selected individuals. Due to the PCard's being similar in nature to credit cards, the
Finance Department didn't feel the need to submit for approval from the Council.
DISCUSSION
The PCard program has been well received by City of Tukwila employees and vendors. It has
streamlined the purchasing process, reduced purchase orders and the use of petty cash. As a
result, the Finance Department was able to reduce the Accounts Payable processing by two Full
Time Equivalent (FTE) positions. The PCard now makes up 70% of City purchases, virtually
eliminating the small dollar transactions from being processed by Purchase Order.
Purchasing Card Benchmark Survey results estimate a purchase made by a traditional
Purchase Order cost on average $89 per transaction. With the use of PCard's the transaction
cost is reduced to $19 or a savings of $70 per transaction. In addition the City has received
rebates totaling $47,464.11 for the period of September 2010 June 2011. We expect an
estimated rebate in the amount of $11,000 for the period of July 2011 September 2012.
RECOMMENDATION
The Council is being asked to consider this item at the November 14, 2011 Committee of the
Whole meeting and subsequent November 21, 2011 Regular meeting.
ATTACHMENTS
-Draft Resolution, with Attachment A
-2011 Purchasing Statistics September 2011
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, APPROVING AND ADOPTING A
PROCUREMENT CARD (PCARD) PROGRAM.
WHEREAS, for operational efficiency, the Finance Department has prepared and
implemented a Procurement Card (PCard) Policy in the form attached hereto as Exhibit A,
"Procurement Card (PCard) Policy," and recommends the PCard Program be approved and
adopted by the City Council for implementation; and
WHEREAS, pursuant to RCW 43.09.2855, "Local Governments —Use of Credit Cards,"
the legislative body must approve and adopt the Procurement Card Program; and
WHEREAS, it is intended for this resolution to retroactively extend approval of the
Procurement Card (PCard) Program to September 1, 2010;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Procurement Card (PCard) Program Adopted. The Tukwila PCard Program Policy,
a copy of which is attached hereto as Exhibit A and by this reference fully incorporated
herein, is hereby retroactively approved and adopted, effective September 1, 2010. City
staff is hereby authorized and directed to implement the program in accordance with its
terms.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a
Regular Meeting thereof this day of 2011.
ATTEST /RUTH ENTICATED:
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY:
Shelley M. Kerslake, City Attorney
Allan Ekberg, Council President
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Attachment: Exhibit A, Procurement Card (PCard) Policy
W: \Word Processing- City \Resolutions \PCard Program Adopted 11 -1 -11
CZ: m rh
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PROCUREMENT CARD (PCard)
POLICY
2010
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Introduction 3
Whatis a procurement card? ..............................3
Consideration for departments ..............................3
How Ret a card ..............................3
PCardLimits ..............................4
PCardApplication ..............................5
PCard
6
Cardholder................................................................................................................................... ..............................7
Reconciler..................................................................................................................................... ..............................7
Department Director /Delegated Approver ..............................8
PCardAdministrator ..............................8
Accountabilitv. Ethics Control .............................10
PurchasingEthics .............................10
PurchasingOrdinance and Rules .............................10
SplitPurchasin2 .............................10
Agreement Si2natures .............................10
EmployeeTransfers .............................10
Accountabilitv& Controls .............................10
PurchasingObstacles .............................11
Lost Stolen or Cancelled PCard .............................11
A Sample of items that can be purchased with a PCard .............................12
M odi f vine Transaction Limits or De
13
PCard Use While Tr
14
Misuse Car
15
O nline Transaction Ma
16
USBank Online Setup .............................16
OnlineAccount Lo2in .............................21
Updatingthe GL Account Code .............................23
Change the GL Account Code by Ouery .............................26
Change a GL Account Code for multiple transactions .............................31
Apply multiple GL Account Codes to a transaction .............................34
Printingmonthly statements .............................36
R econcili at ion Process
41
StatementReconciliation .............................41
A p p rova I
42
FinanceReview .............................43
PCardPavment .............................43
RandomPhvsical Audit .............................43
Lost Receipt .............................43
Who to contact
44
Appendix
PCardFlowchart ..............................A
PCardApplication ..............................B
PCardTransaction Log ..............................0
PCardAffidavit
D
PCardProcessing Calendar
E
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INTRODUCTION
What is a Procurement Card (PCard)
The City of Tukwila procurement card is a commercial credit card to be used specifically for
purchasing goods and services for the City. The function of the PCard is confined to official use
only and must never be used for personal expenditures.
The City of Tukwila Procurement Card Program is designed to:
expand purchasing options
generate revenue for the City of Tukwila through a rebate
reduce the use of petty cash funds
streamline the small dollar purchasing process by making it simpler and faster
reduce the number of requests for special checks
reduce paperwork, transactions and checks associated with standard purchasing
and payments
eliminate the need to use personal funds
allows for some purchases under emergency conditions with approval
What to consider when determining a PCard cardholder.
What type of purchases will the department be making with the PCards?
What are the needs within a department?
Who will be purchasers and who will be reconcilers in a department?
When the PCard is used, is there a fee attached to using the card?
Who is responsible for the allocation of the appropriate budget object coding
for each purchase?
How to get a PCard
A Department Director will make the assessment of who receives a PCard by determining
the purchasing needs within their department. The employee will need to complete a City
of Tukwila Procurement Card Application and have their Department Director approve the
application. The completed form is submitted to the PCard Administrator who will request
the PCard online through US Bank. All employees of the City of Tukwila must attend a PCard
training session conducted by the Finance Department before receiving their PCard. The
training session will be held at regular intervals based on need. Contact the PCard
Administrator by email at QcardadminC@ci.tukwila.wa.us for questions about the PCard
program.
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INTRODUCTION
PCard Limits
PCard Limits can be assigned transaction limit as well as a monthly total spending limit. The
limits are important controls to reduce unnecessary purchases, maintain purchasing
authority by individual and limits fraud or abuse. Limits are assigned by the Department
Director when approving the Application form. There are five limit levels, four are
predetermined with a set per transaction limit and total spending per month (see table
below.) The fifth level can be assigned an amount needed for the purchasing needs of the
PCardholder.
l
501
500 2,500
$1 $5
1 10,000
$2,500 25, 000
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INTRODUCTION
PCard Application
The PCard Application form will contain the terms and conditions required of the
cardholder. The PCard is to be used only for official City of Tukwila purchases as authorized
by this policy. Under no circumstances shall personal purchases be charged to the City's
procurement card, even if the intent is to reimburse the City for such charges. Although the
card is issued to a specific employee, it remains City property and may be rescinded at any
time. The PCard application can be found on TukNet under the Finance Department (See
appendix "B" for sample form).
City of Tukwila
Procurement Gard (PCard) Application
This form Is used to apply for update or cancel a City PCard All fields are required unless otherwise noted. If you have
questions, please contact the PCard administrator by±email at pcandadnim( ei.t.lkarila.wa.41s.
Request Type. Apply for PCard Update Existing PCard Cancel PCard
Employee Ilnformatlon;
F�Y•st Name Middle 1,1,ar Last Name
Emoloy Ndumn•er ❑snanment Div sic!a.. Email address
Emplo P 1C and User .fig reeme nt. (Far cart appficarior£ o my Enoec not appip to cart up:+da ?ea or carrcedfataonc,i
By signing below I Indicate that I understand these term and agree to be bound by and comply with the City of Tukwila
PCard poHries. including, but not limited to each of the following, as a condition of receiving and continuing to have
authority to use a City of Tukwila PCard:
Select the check box next to each statement to indicate you have read each of the fofiowrfrig:
I am the only person authorized to use the card and will only charge City of Tukw fla business- related purchases. Use of
card for personal purchases, may constitute fraud and could result in disciplinary action, including termi- nation.
I will review my account regulad'y {vieek.ly review recommended), allocate charges, to other than default budget, if
necessary. resolve any discrepancies with supplies andior the card provider, and forward all receipts to the
reconcileriapprover for monthly purchases charged to my card: anthin 2 drays of the statement close date.
m the event my PCard 1s bosh, stolen or compromised, I will immediately contact US Bands Customer Service
at 817+0.344.5656 and the PCard Administrator by e-mail to pcarc1aamin o@ci tukwila.wa.!us.
I will use my PCard to purchase Items within my assigned spending limit and approvals as determined by
my departnr nt. Splitting of purchases to circumventtransactaon limits are pmhi'bited and•w,ill result in
cancellation of the card.
In the event my employment with the City of Tukwria ceases for any reason I will return my PCard
immediately to the Finance Department.. I also agree to surrender my PCard Upon request or if my reporting
relationship changes and I no longer need a PC and.
I have printed and read the PCard Manual.
II acknowledge that this card may be used for the purposes as described above, and any use for personal
purchases or any other unauthorized use with violate the state ethics law, chapter 42.52 RCLtid and City Policy. II
expressly permat the City of Tukwila to deduct from my paycheck any amount charged on the card- for an
unauthorized purchase.
Emplcy-- aig :,alure fF :mt. KII. Last NAarnei Date
Manager Approval
By approving this application I acknowledge that
I agree this spending Innat is at or below the aelthorized spending limits for this mclividual
I .sill review and approve this individuals PCard activity statement each month within the prescribed time frame
I will promptly investigate and take proper action to stop misuse or muse of the card
I will notify the Finance Department mirnediately if this cardholders employment is terminated for any reason in
advance of such termination, if practicable
PCa ^a Lmit iLava•,' Fire requires Grtyr'dnxini ;trafnr. 'Finance Dlrector Apprvaafl
Le•.e One 5500 per transackc.. 52.5470 #tai per month Level Three 5!,500 peg tran saction S ;0,000 total pex n
Levu Tkv� V,0,4 per transaction :55,CCQ total pert nno -th Level Four $2,5170 per Rrasactrz 5[5,1]x4 total per nw lh
Level Fkve- S per transactor: 5 instal per rent
U Huc get Ndum,DS7 I manger a,ppmvai and Date
Deaartment u irectc- Approval and Date I �Inance D €rect€- �r, ;h�ti_;ard kdm rtlzrrat^at.5np va. and Lrate
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ROLES
Procurement Card Roles and Responsibilities
There are four roles within the PCard process. They are the cardholder, reconciler, approver
and PCard administrator. The duties and responsibilities of each role are listed below.
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ROLES
Cardholders Are the department purchasing agents responsible for appropriate
purchases, obtaining sufficient documentation for purchases and performing the first
level of transaction review of their PCard purchasing account.
Responsibilities:
Attend a PCard training session.
Familiarize yourself with the City's administrative policies and procedures for
purchasing goods and services.
Make responsible and appropriate purchases.
Maintain online transactions. Make GL account code corrections. (If a computer
is available.)
Maintain all supporting documentation (receipts) /confirmations for each
transaction.
Print the online statement and match all supporting documentation paperwork
to the transactions listed on the statement.
Provide your department reconciler with all the necessary paperwork to prepare
PCard Packet for approval. (If computer is not available for printout, provide
reconciler with supporting documentation for each transaction.)
If Cardholder prepares own PCard Packet, cardholder must match statement to
PCard Transaction Log and submit to Department Director by the end of day on
workday three (WD3).
Reconcilers Are responsible for collecting card holders' supporting documentation
at the end of each transaction period. They will reconcile cardholder PCard purchases as
determined by the Department Director. This includes ensuring each transaction has the
correct supporting documentation attached and the correct General Ledger (GL)
account Code listed on the statement. They will work directly with the accounts payable
team.
Responsibilities:
Attend a PCard training session.
Familiarize yourself with the City's administrative policies and procedures for
purchasing goods and services.
Develop procedures within your department for managing and gathering all data
pertaining to a PCard purchase.
Help manage those individual accounts where computer access is not available.
Print all online statements for all card users who do not have online access.
Collect all department PCard statements and supporting documentation for all
cardholders within your department.
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ROLES
Reconcile all statements to the PCard Transaction Log and verify supporting
documentation is attached.
Submit statements to department director for approval by the end of day on
workday three (WD3).
Turn in all documentation to the Finance Department (accounts payable) by end
of the day on work day five (WD5).
Liaison to Accounts Payable Department to ensure all statements are collected
and answer questions related to specific purchases.
Department Director /Delegated Approver: Is responsible for
expenditures within their responsibility, and is ultimately responsible for the
management and success of the PCard Program in their Department. The Department
Director or delegate approver will have the final approval of all PCard purchases for
their department.
Responsibilities:
Attend a PCard training session.
Should be familiar with the City's administrative policies and procedures for
purchasing goods and services.
Makes determination of who should have a PCard within their department.
Provides the authorizing signature for each PCard agreement form and assigns a
default GL Account Code.
Delegate PCard roles and responsibilities for the department.
Establish internal procedures and identifying PCard responsibilities for
participating department individual.
Upon request, the administrator can monitor all department cardholder activity.
Approves monthly statements for purchases and proper G/L accounting.
Confirms purchased items are received and used for City of Tukwila business
purposes only.
PCard Administrator The PCard Administrator oversees and manages the PCard
program for the City of Tukwila. They are responsible for program functions and training
of the PCard process and working directly with US Bank.
Responsibilities:
Maintains and establishes guidelines /training for PCard program.
Establishes the policies and procedures for the PCard process.
Maintains all PCard user agreement forms.
Requests all new PCards through US Bank.
Maintains all cardholder information through the US Bank online program.
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Upon request from a Department Director, this individual will make a change to
a card holder's monthly or individual transaction limit.
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ACCOUNTABLILITY, ETHICS CONTROLS
Purchasing Ethics
As a public employee, you are responsible for following the City of Tukwila and State of
Washington's ethics rules. Do not conduct any business with members of your family or with
businesses with which you have a financial interest. Any questions about this should be
directed to your supervisor or department head.
Purchasing Ordinance and Rules
Normal requirements (when applicable) for written quotes, competitive bidding, waiver
justification, dollar limits, necessary approvals, etc., cannot be circumvented by use of a
procurement card. The PCard does not relieve City employees from prudent expenditure of
City funds and obtaining the best value for goods and services.
Split Purchasing
Split purchases to circumvent transaction limits are prohibited. A split purchase is defined as
multiple transactions with the same vendor for a single purchase on the same date when the
combined purchase exceeds the single transaction limit on a card. Contact the PCard
Administrator if you require a temporary change to PCard single purchase limits.
Agreement Signatures
Do not sign any supplier agreement. If the supplier requires a standard form to be signed, send
the agreement to the Finance Department for review. Supplier agreements protect their
interests, and may need to be revised in order to protect the City.
Employee Transfers
An employee who has an existing card and transfers to another City position under a different
supervisor or budget authorization requires an updated card approval to change default
accounting, approver contacts and card authorizations. It is not necessary to reissue new cards
for transfer and receiving supervisors. The cardholder is responsible for assuring card transfers
are completed in a timely manner.
Accountability Controls
The PCard Program empowers departments and their personnel to purchase and pay for
certain goods and services quickly and easily. Within the general constraints of the policy,
departments have discretion to determine who is assigned cards and the level of procurement
authority given to individual employees.
18 Page 10 of 45
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ACCOUNTABLILITY, ETHICS CONTROLS
Accountability for proper oversight, establishing internal controls, assuring compliance by
employees, and maintaining necessary records and documentation of PCard activity are
primarily department responsibilities.
Cardholders, designated PCard approvers and Department Directors are responsible for the
proper safeguarding of the card and to ensure its proper use, including appropriate and timely
review /approval of transactions and payments, reconciliation of statements, maintenance of
records and documentation, and compliance with the PCard Policy. Department Directors
should establish appropriate internal control and monitoring procedures that provide for
review of a cardholder's transactions, proper receiving of goods ordered and periodic review of
overall PCard program activity for their department. Each department's internal policies may
va ry.
Purchasing Obstacles
When making a purchase, there are procedures to keep in mind.
Know your 3 digit PIN on the back of your card.
When asked for an address by a merchant, always provide them with the City of
Tukwila's main address of 6200 Southcenter Blvd, Tukwila, WA 98188.
When asked for a zip code at point of purchase, use 98188.
If a purchase is declined, call US Bank customer service at 1- 800 344 -5696 or email
pcardadmin @ci.tukwila.wa.us.
Lost, Stolen or Cancelled Cards
The City of Tukwila is liable for all transactions until the PCard is reported compromised, lost or
stolen. However, it is the responsibility of the cardholder to immediately report fraudulent
charges, lost or stolen cards to both the bank and the PCard Administrator. To cancel a card,
email the PCard Administrator at Pcardadmin@ci.tukwila.wa.us.
Page 11 of 45 19
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ACCOUNTABLILITY, ETHICS CONTROLS
A Sample of items that can be purchased with a PCard
Advertising (no monetary limit when pre- approved)
Airfare
Books or manuals
Car rental
Conference services /registrations
Copier rentals/ monthly maintenance agreements
Event planning
Food (when allowed by City policy, per diem is not allowed if PCard is used to purchase food
while in travel status)
Fuel (while in travel status for rental vehicles if employee doesn't have a "Pacific Pride" card)
Express mail
Lodging
Mat cleaning
Materials and supplies
Memberships
Office Supplies
Postage
Printing /Copying services
Professional licenses
Registrations
Software (must have IT approval before purchasing)
Tools
Training
Utilities
Water service
20 Page 12 of 45
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TRANSACTION LIMITS OR DEFAULTS
Modifying PCard Transaction Limits or Defaults
All requests for increasing single or monthly transaction limits need to be approved by a
Department Director and emailed to the PCard Administrator.
Temporary monthly limit increases requires written approval of a Department
Director or department personnel with delegated department budget authority in their
absence. This can be accomplished by an email request from the Department Director
and is forwarded to the PCard Administrator.
Temporary single transaction limit increase requires a written approval of a
Department Director or department personnel with delegated department budget
authority in their absence. This can be accomplished by an email request from the
Department Director and is forwarded to the PCard Administrator.
Permanent monthly or single transaction limit increases requires completing the
PCard Application form for changes and sending it to the PCard Administrator. This
request must come from the Department Director or a person with budget authority.
Changing default budget code requires completing the PCard Application form and
sending to the PCard Administrator. This request must come from the Department
Director or a person with budget authority.
Changing employee profile information can be accomplished by emailing the Finance
PCard Administrator with the information request.
Reconciling access requests need to be requested with the approval of a Department
Director or an employee with delegated department budget authority. The Department
Director or designated employee sends an email request to the PCard Administrator,
noting required access changes.
Page 13 of 45 21
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USE OF CARD IN TRAVEL STATUS
PCards should be used for the following travel expenses
Conference registration
Airfare
Lodging
Room rental for meetings
Meals when per diem is not requested (employee is responsible for purchase amount
greater than allowed for geographic area of travel and must reimburse City at time of
reconciliation)
Required transportation (i.e. rental cars, taxi, bus, shuttle)
Fuel
Parking
Tolls and ferries
PCards cannot be used for the following expenses
Meals when a per diem meal allowance is requested by the traveler
Boot allowances /reimbursements
All listed permissible travel related purchases MUST be accompanied by an itemized receipt.
not just the credit card receipt. All City personnel in travel status are accountable for travel
policy compliance. See Policies and Procedures, Finance 03 -06, "Travel Expenses While on City
Business
When not using a per diem for meals, the City policy needs to be strictly adhered to. A tip of no
more than 15% in total can be added to any meal receipt. No alcoholic beverages at anytime
can be charged on a City credit card. All expenses not approved must be paid back to the City in
a timely manner or deducted immediately from an employee's pay check.
When a receipt of any type is lost, a PCard Affidavit (see appendix "D form needs to be
completed by the cardholder and signed by a Department Director and PCard Administrator.
Affidavit can be found on TukNet under Finance.
Employees must be sensitive to public expectations regarding the use of public funds and
employees are expected to use good judgment when conducting City business. Improper use
will result in your card privileges being revoked.
22 Page 14 of 45
Card Misuse
Although the City is liable for the Procurement Card Program and card activity, the cardholder is
responsible for the safekeeping of the card and its proper usage. By using the PCard, the
cardholder is accountable for the expenditure and use of City funds. Misuse of the PCard that is
determined as personal, will result in the cancellation of the PCard and disciplinary proceedings
including termination as appropriate.
Cardholder Misuse includes:
Personal purchases
Allowing others to use an individual card
Using card in violation of policies, directives or procedures
Allowing improper charges to go undetected or unresolved
Using card to make purchases through a merchant that may constitute a conflict of
interest (ethics violation)
Repeated incidents of missing receipts, disputed charges, lost or stolen cards
Splitting charges
Delivery of goods to location other than city work station
Not maintaining necessary documentation of card transactions and purchases
Not submitting documentation in a timely manner for transaction approvals
Not properly and promptly reviewing /reconciling transactions prior to payment
Using card to circumvent other City ordinances, policies, rules or procedures
Since the card is issued in the cardholder's name, all purchases are assumed to be made by the
cardholder. Be aware that improper use may result in your card privileges being revoked. The
PCard Administrator is the final authority in revoking an employee's card.
Page 15 of 45 23
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US BANK ONLINE SETUP
US BANK Online Access
Cardholders and reconcilers are required to setup an account with US Bank Access online at
httr)s: access .usbanl<.com /cPsAppl /index.isp to manage purchases. The US Bank website is
used to review and update transactions with GL Account Codes or to dispute a purchase.
How to set up an online account
v i https ushank.
File Edit Oew Favorites Tools Help Select
Favorites
Welcome to Access Gnline
U.S. Benk,AccesV online
ii Page Safety Tools (0-
a
M
Login into website Password:
given above
Click "register im
online"
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v
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24 Page 16 of 45
Pb ank
Welcome to Access Online!
condsc€ u
Please enter the inforimation below and login to begin.
,..odli7
urgeniatian Shad Naime:
I
Reeister Online
User 11
Login into website Password:
given above
Click "register im
online"
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24 Page 16 of 45
ILA
0
Gl
l ong
e https usbank,com
File Edit View Favorites Tools Help 4�,Convert Select
J Favorites 49
Add Accounts
US, Rank. Access. Online
Procurement Card Manual
US BANK ONLINE SETUP
cj
I
ft Page Safety Tools d
!Mbank Online Registration
Add Accounts
Contact Us
Lo in To join .CCes's' Online 4ou vill need a rninirnum of ona slid accountnumher. 'Register This :croimC' ,vill
g
validate a single account. 'Additional Account" ,+gill alla,w multiple accounts to he included in the registration
process.
required
„PwN Orgam�ti7n �h�rtflame "`"M,,,,
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1 COTU
2 A.ccounttJumher`°
;-Bacicto Lorai Page
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account Expiration Date:
6.luntW Year'
.Jan V 2010 v
Done
Internet 1 ^t, 1001
Setup Login
1. Enter "COTUK" under Organization Short Name
2. Enter the 16 digit PCard number and expiration date on front of PCard
I Click "Register This Account"
Page 17 of 45 25
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v P, https usbankmm
File Edit View Favorites Tools Help q�k onvert 'select
Favorites
Licensing Agreement
U.S. Bank Access=' Online
.W
rat Page Safety Tools
n
CITY OF TUKIWILA.
Licensine Aereement
Read Licensing Agreement
Click "I accept" at the bottom of page to use online services. This is required to
use the PCard
Procurement Card Manual
US BANK ONLINE SETUP
26 Page 18 of 45
Licensing Agreement
Please read and 3CCeptthe Licensing A'.greementt0 COntin Lle
Access 09711ne Terms of Service
1 A•.Ck.N .VLED3hr1ENT AND ACCEPTANCE 1 F TER1r15 1 F ACCESS 1 NLINE
Access unline, owned and operated hr U S 63nk National Association i "U S 631W";, is provided to the
Customer under the terms and conditions ofthis Access mline Terms of Oerdi ce 1ATO; which incorporates hr
reference any operating rules or policies that i he published by U S 63nk The A'.TS 3s it i hereafter he
amended or modified without notice, comprises the entire agreement between Customer and U S 6311E and
sllpersedes 311 prior agreements between the parties regarding the SUbjeut matter Contained herein. 6y
logging on to Access 1nline and clicking the "1 Accept" Dutton, you are indicating Customer's agreement to he
hound Dy 311 ofthe terms and conditions ofthe A'.TS and that you have the 31-Ithorityto so agree on behalf Of m
Customer
In consideration for access to Access Online, Customer agrees to 11j provide certain Current, complete, and
accurate information Shout Customer 3s pro mpted to do so hr A'.ccess 0 nIine, and i2j maintain and update
this information as required to keep it current, complete and accurate All information requested on original
Sign LIP shall be referred t0 as registration data i "Registration Data FLlrtherm Ore, CLIstomer gr3nts U S
3310. the right to disclose to third parties certain Registration Data 31DOLIt Customer in the aggregate, however,
such disclosures will exclude CLstomers 113me, mailing address, a -m311 3ddress, 3CCOLInt and phone
111-lmber Unless 11; CLIstomer expressly directs U S Bank, Or 311V Other person CLIstomer m3y spe CIfiC311y
designate t0 disclose such information or 92; U S 6311k is required to disclose such information Dy any
3pp1ic31Dle I3W or legal process served on U S 6310
If any infor1r13tion provided Dy Customer is inaccurate, U S 630 retains the right to terminate Customer's
;Done
Internet A 1%100%
Licensine Aereement
Read Licensing Agreement
Click "I accept" at the bottom of page to use online services. This is required to
use the PCard
Procurement Card Manual
US BANK ONLINE SETUP
26 Page 18 of 45
J
Online Registration
User ID
Procurement Card Manual
US BANK ONLINE SETUP
e https .1...
File Edit View Favorites Tools Help convert ti select
Favorites
P
Password and Contact Information j car Page Safety Tools
Enter a User ID U.S. Bank Acces
Online
7-12 alpha characters long bank.
Onfine Registration
Enter a password in the
Pa —word and cant -t inf-riatimin
Password field
Confirm your password by re-
User ID N—e.
entering the new password
Authentication
Select a question from the
Authentication Question
Enter your answer
Contact
Information
Enter your name as shown on
Auth E ntiC 3ti Gil
the PiCard
For address use
6200 Southcenter Blvd,
Tukwila, WA 98188
Enter your work phone and
fax number
Enter your work email
address
Finish
Make sure all red asterisk
boxes are filled in
Click the "Continue" button
The "Client Home Page" will
display
All of IZ7 servig you
Done Internet 65%
r r
Page 19 of 45 27
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US BANK ONLINE SETUP
U.S. Bank. Access=' Online
I
(User ID has heetn successfully added.
Transaction Management Message(s) from Access Online
Account Information .v :'el colnne to Access mllnel Stretch VOUr pfogf3m limits 3nd stfe3mllne 33finent processes with -'.cce ss
Reporting mllne, OUr InnoV3tive pfogf3m rnan3gernent 3nd reporting tool. This''weh- en3hled tool effefs 3 fe3tLlfe -fl ch
My Personal Information 313tfofinn that c3n he e3SiIV CO nflg Ured 3nd deplo to meet ti011f LInigUe needs. Access 4'OUr 33Yl rent
solutions anytime, 3nvvhere With •.ceess online
Home xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx .xxxxxxxxx. xxxxxxxxx. xxxxxxxxx. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx .xxxxxxxxx
Contact Us Bianvpnlla silt A.ccass Onlinal Rapnllssa7 las limitas de vntre prngrannma at simplifia7 les pmcasslls de
331ement 3vec .ccess Online, notre outil 113V3terr d'et3hlisserinent de r3pports et de gestion de progf31
Get Ortil Internet offre rile 313te -forme riche en fondionn3lites qri pert titre 3iserinent confgrree et deplofee
p OUr fepondfe 3 Vos hesolns p3rtl CLlllefs A'.ccede 7 3 VOS sOILltlons de p3iement en tort temps, OU qUe VOLIs
soye7 3vec Access mline
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxx. xxxxxxxxxxxxxxxxxxx. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx .xxxxxxxxx
All of 4 s rving you°
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Gone Internet
Client Home Paee
Transaction Manaeement
Review Transactions
Change Account Coding
Dispute a charge
Account Information
Statement
Account profile
Be porting
Review transactions in PDF or Excel format
My Personal Information
Change password
Change contact information
Manage Accounting Code Favorites
CITY OF TIJI4
Language Selection
Arnefic3n English v
R CARD
1
3
a
too
28 Page 20 of 45
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ACCOUNT LOGIN
Account Login
The "Transaction Management" link allows cardholders and reconcilers to view current and
past PCard purchases. It also enables the cardholder or reconciler to change the GL Account
Code from the default accounting code. The following steps provide examples of how to view a
transaction and update GL Account Codes.
t ,eq. Welcome to Access Online gf, U t Page
U.S. Bank Access' OnHne
Account Login
Go to website
httr)s://access.usbanl<.com
/cr)sArml /index.isr)
Save as favorite
Enter personal login
information
Click "Login"
View Transactions
Click on Transaction
Management
�EMbank. Welcome to Access 0ini iniel
Contact us Please enter the information below and login to begin.
n
O Short flame:
V
User ID'
Welcome To Access Online ri Page Tools
t
A
U,, Barak Access° Online
Mbank, Message(s) from Access Online
'elcorne to Access Online! stretch your program limits and streamline
aun d #n niaMww�� Online, our innovative program management and reporting tool. This ,v
Transaction Pilanagemegt platform that Lan be easily corifigtued and deployed to meet your tlniqu
4..cC W� MffTfW P1' SollltlOnS anytime, any with Access Online
Reporting a RaKKKRaKK KKRRaKKRa KRaKKKRaK RaKKRaKKK KKRaKKRRa RaaKKRaKKKRaKKKR
Data Exchange
My Personal Information Dienvanue surAccess Online! Repotlsse_les imites de votre program
paiement avecA.ccess Online. notre outil novateur d'etahlissernent de r
Get outil Internet offre Line plate -forme riche en fonctionnalites gtli peut
Home pour repondre a vos laesoins particuIiers. Acrede_a vas solutions de p
Contact Us soye; avec Access Online
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Page 21 of 45 29
Procurement Card Manual
ACCOUNT LOGIN
Transaction Management 9 fii Page Tools
U.S. Bank Accessr Online
View Transactions
Click on
"Transaction List"
Management
Account A.dministration
and add comments to
Transaction List transaction inforrination.
Account Infori-nation VIRW PrRVMIIq (.Vr.IR
Reporting Data resents the Transaction list for the previOLIS
My Personal Information cvcle
H—o
Contact Us
Account Search
Enter the last name
of cardholder to
view their account
All of serving you
Transaction Management Account Search
U.S. Bark Access= 0I
Inv--i rk inn-/. 4
rWj Tools
A
M bank.
Transaction, Management
Search and Select an Account
Account Ad ministration
Transaction Management
;111 1
Cardholder Account Search
Account Information
Reporting.
Search for 3n 3CCOUnt DYCadholder Account Number. N 3rne. Of Social 380.jrity Nun niter. You can also find a
Data Exchange
cardholder 3ccount L, frst q.p., for a Ibinaninn Account.
Ty Personal Information
ACCOUnt 111.1ni
me
Contact Us Narne Name
Mir
Done
Internet t 1001
30 Page 22 of 45
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UPDATING THE GL ACCOUNT CODE
Updating the GL Account Code
The US Bank transaction management web page allows viewing of PCard
transactions /purchases for the "open" billing cycle. Current transactions can be viewed and GL
Account Coding changed through WD2 after the statement close date. Past billing cycles can be
viewed by selecting the "Billing Cycle Close Date" function as shown below.
All purchases are assigned a default GL Account Code by PCard as assigned by the Department
Director. All GL Account Codes should be changed to the actual GL Account Coding by the
cardholder or reconciler once a transaction is available online, generally in 24 hours.
The following are examples of how to make single and multiple GL Account Coding changes for
a transaction.
e httpsifaccessusbankmmfcpsApplfUSE ComServlet
File Edit View Favorites Tools Help
r. Card Account Summary with Transaction List
Data Exchange 1 Card Account Summary
My Personal Information
ccaunt Number 9319
Home. Pcwllnt PJame: P ""'q, 13 EELLERHOFF
Contact us Billing I,rele Close Elite Pen v
1 +I Search Criteria
1 -1 Transaction List
sY A
I I V I r� ,J Page ,f Tools
.vwm ww
This page shoNvs an
J ar
open billing cycle. Past
billing c� -c les can be
shown by nsing the
a1ToNv down function
and then clicking the
Re¢ni -F
c ir., A11 shave
I unms d ?JI °h nun
Sdect Status
Trams
merdmt
(III
Amount
Detail f
Accouffling Code
Date D ate
07719 07121
COf.1PLETE OFFICE
296- 6289959, oN
$227.76
si 598408
EIAAA AS n14 240 31 MI,
07119 07!21
COMPLETE OFFICE
206 6289959. iN,A
$152.21
k i i 599573
EIAAA A5 F14 2R0 3l AAI,
07716 0719
COf.1PLETE OFFICE
206 6280059, oN
$589.11
iii 599376
EI000.05.514230.31.001
0714 0716
COMPLETE OFFICE
206- 6280059,iIiA
$1,240.09
tai; 598408
EI00.05.514.230.31.001
W715 07.16
PUGET SOUND FIN.ANCEOFFIC PIJY�LLUP, dA
$159.90
0 3 3
dul tll]IP
iU! Cispct Ary Rasllccstsd JU (yiUl
Tr Ceteil Lxvel
Internet
0
Page 23 of 45 31
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}.ccmmtPJumher 0 .9818
Home AcI.UntNaOn GR?.IGZELLERHOFF
Contact 0s Billing CAR Close Date Open
D "t
1 +1 Search Criteria R= t— r.W
I I Transaction List
Procurement Card Manual
UPDATING THE GL ACCOUNT CODE
eLti Ei Rurchai
07!19
OlE1
COMPLETE OFFICE
206 6280059 a?
$227.76
9 99376
Pinion OF F14 2 �1 001
A) 598408
Eino op F14 DO �i on i
07119
07 ?21
COMPLETE 0FFICE
2066266059 Nx
$152.21
07116
0719
COMPLETE OFFICE
206- 6289069.
$589.11
07,'14
0770
COMPLETE OFFICE
2061 '"Ai
$1,240.09
07115
0T16
PUGET SOUND FINANCE OFFIC
PUY,ALLUP, t ^J?.
$150.00
iq1 cin t_o
Al Reeiic tso
H) ni7
T-- cet9ii --,-1
R_=-1
zts
Procurement Card Manual
UPDATING THE GL ACCOUNT CODE
eLti Ei Rurchai
Wi Aoeoun Code
98408
'it)
9 99376
Pinion OF F14 2 �1 001
A) 598408
Eino op F14 DO �i on i
o
Hilift
Internet a 100°!
Undate Individual Transaction GL Account Code
To change the GL Account Code on a individual transaction, select a line
item by:
Clicking the check box to the left of the transaction to be changed and
then click on the "Reallocate button" on the bottom of screen.
OR
Click on the Accounting Code to go directly to the reallocation page.
32 Page 24 of 45
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UPDATING THE GL ACCOUNT CODE
P hops ilaccess usdank mmicpsApplil156Com5ervlet g
File Edit View Favorites Tools Help
W Transactmn Management- Reallocation Worksheet yj CC;![ Page Tgols
n
U.S. Bank Access< Online CITY OF TUKINILA
Tob ank Transaction Management
Home
Contact Us required
0A'2312010 COMPLETE OFFICE '03.21 Add kllnn �E Q 1101010.10E.514.230.31 01
Q Les,
"'141 o rJ9t: ",Y!J
o
Fackt0Trairsaction List
All of 7 serving you
Internet
Undate Individual Transaction GL Account Code
Change the GL Account Code and or Project Account Code (only valid
values are accepted)
Click "Save Allocations"
4, 100%
Page 25 of 45 33
Reallocation Worksheet
Account Administration
I Cab Account number 21 A, uR.:l 1a ZELLERRCFF F'.Ait Acne.
Tran saction Management
Card kcccunt List
Reallocate transactions by changing the accounting information to allocate the amminita a different cast
caliber. Tu allocate to additional accuuiding Ludes, LliLk.ihe -.00 Alluc link..
A—um Information
Reporting
after modifying the allocations, click the "Cade 4.3cations button to save changes. ELClUde transactions from
Data Exchaxge
the save by selecting "Remove Trar iorns',' checkhozes and aptionallP clicking the Remove Transaction
My Personal information
c. button
Home
Contact Us required
0A'2312010 COMPLETE OFFICE '03.21 Add kllnn �E Q 1101010.10E.514.230.31 01
Q Les,
"'141 o rJ9t: ",Y!J
o
Fackt0Trairsaction List
All of 7 serving you
Internet
Undate Individual Transaction GL Account Code
Change the GL Account Code and or Project Account Code (only valid
values are accepted)
Click "Save Allocations"
4, 100%
Page 25 of 45 33
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UPDATING THE GL ACCOUNT CODE
Change a GL Account Code by Query
Valid City of Tukwila GL Account Codes are available for lookup on the US Bank website if you
are unsure of correct GL Account.
08!13 08116
SEA. LIGHT MET4 ",ANTE4r1 208- 684 -3000,
1%A..
$418.86
08113 08116
SEA LIGHT METkMNTE -111 20C -684 -3000,
1NA
$9.18
08}13 0916
SEA. LIG HT 11 ETkANTE -4,1 200 684 -3000,
AIA
$2421
08113 08116
SEA LIGHT 1JETAVANTE -I'd '205- 584- 3000,
WA
$'29.59
08113 09,
SEA LIG HT ICI ETNvANTE -1,1 206684- 3000,NA
FI000 OF. 114 ^M 31 001
$8174
0813 08116
SEA LIGHTMETMANTE -10 206 684- 3000.1NA
$9.18
00113 0 T1 6
SEA. LIG HT M ET VA.NTE -1,1 206- 604 -3000,
0'%'A.
$461.70
08113 08116
SEA LIGHT I,IFT4V..ANTF -1,1 206 684 -3000..
'A'A
34,64874
08113 08116
SEA LIGHT NETAwANTE -kl 266- 684 -3000,
NA.
$2,197.32
00117 00116
SEA LIG HT U ETKMNTE -h1 206- 604 -3000,
NA
$77.10
0813 08116
SEA LIGHT MET4 ",ANTE4u1 208 -684 -3000
'A
$2,803.08
08111 08113
COMPLETE OFFICE 206 6280059,
-.'F.A
$540.84
00110 00.12
COMPLETE OFFICE 206- 6200059.
62,27749
08_110 08112
COMPLETE OFFICE 2 0 6 62 8 0 0 59
.v'{A
$44..35
08110 OT11
IJOUNTAIN HIST 253 5355447
o'(A
$67076
00110 0711
S EA LI G HT U ETkMNTE-U 206-6N-J000,
NA
3125 JD
Ili Cis rte,
P =911 t n �,1
T C L 1
0109045E
FIAAA 01114 2M 11 001
S 01090451
EIOI111 111 5 1 4 2 311 3 1 MI
01090450
F1000 05 315 230.31.001
.i 111 0 9 114 4 9
PAN At 514230.31.001
01090448
RAM 01. 114 21011 MI
�n1 01090447
FI000 A' 1147M 31 001
01090446
E1000055152M.11001
(li? 010904.45
FI000 OF. 114 ^M 31 001
01090442
EIOM 05.514 2i0 91 001
S 01090441
E1000 08 5142, 2 0 31 001
!1 010904.40
FIMA A5114 2W 11 MI
pt} 007948
EIOI111111. 514 231A 31 011
60 7940
;1i.}
E1000055152 ^0.11.011
..Se 607901
F1 AAA f1111421f111 All
.J0 X5[081019150117
EIMO 01. 314 2M 11 MI
1T 01019561
E1000.16542.670.47. 001
Internet 'I!"100%
a
Chanee a GL Account Code by Query
Not sure of the correct GL Account Code, a query can be run to find a City of
Tukwila valid GL Account Code.
On the transaction page, identify the GL Account Code to be changed
Click on the GL Account Code
34 Page 26 of 45
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
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City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Peggy McCarthy, Interim Finance Director
DATE: November 3, 2011
SUBJECT: 2012 Property Tax Levy
I> -�l1A
The Council must consider and pass a property tax levy for 2012 by November 30, 2011. Because
the implicit price deflator is greater than one percent, a resolution declaring a finding of substantial
need does not need to be passed by Council.
�Ta3�:Z�1�LL;
A Public Hearing for adoption of the 2012 property tax levy is required by RCW 84.55.120. The
Hearing is scheduled for November 14, 2011.
The City was notified on October 31, 2011 that the assessed value for Tukwila for 2012 is projected
to be $4,662,144,321. This represents a decrease of $147,342,465, or 3.06 from the 2011
assessed value of $4,809,486,786. The allowable levy projected by King County and documented
on the Preliminary Levy Limit Worksheet -2012 Tax Roll is $13,737,816, representing the maximum
101 increase allowed.
DISCUSSION
The assessed value and the allowable levy are subject to change until final levy rate determination.
A levy amount of $13,800,000 will be used for the ordinance. If the final allowable levy is less than
the ordinance amount, King County Department of Assessments will adjust the ordinance amount to
the final allowable levy amount and no further action by the Council will be required. If the final
allowable levy is more than the ordinance amount, a revised ordinance will be presented to Council
at the Regular Meeting on December 5, 2011 for approval.
RECOMMENDATION
The Council is being asked to consider the ordinance adopting the General Tax Levy and the
ordinance adopting the Regular Tax Levy at the November 14, 2011 Committee of the Whole
meeting and the subsequent November 21, 2011 Regular Meeting. A public hearing has also
been scheduled at the November 14, 2011 Committee of the Whole.
ATTACHMENTS
Draft Ordinances
Preliminary Levy Limit Worksheet 2012 Tax Roll
59
x
F°' x
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, LEVYING THE GENERAL TAXES
FOR THE CITY OF TUKWILA IN KING COUNTY FOR THE
FISCAL YEAR COMMENCING JANUARY 1, 2012, ON ALL
PROPERTY, BOTH REAL AND PERSONAL, IN SAID CITY,
WHICH IS SUBJECT TO TAXATION FOR THE PURPOSE OF
PAYING SUFFICIENT REVENUE TO CARRY ON THE SERVICES
OF THE SEVERAL DEPARTMENTS OF SAID CITY FOR THE
ENSUING YEAR, AS REQUIRED BY LAW; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Tukwila has considered the City's
anticipated financial requirements for 2012 and the amounts necessary and available to be
raised by ad valorem taxes on real, personal and utility property, and
WHEREAS, the final assessed valuation calculation has been determined;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Regular Tax Levy.
A. There shall be and hereby is levied on all real, personal and utility property in the
City of Tukwila, in King County, whose estimated assessed valuation is $4,662,144,321,
current taxes for the ensuing year commencing January 2012, in the amount and at the
rates specified below:
Amount
Regular Tax Levy $13,800,000
B. The said taxes herein provided for are levied for the purpose of payment upon the
general bonded indebtedness of the City of Tukwila, the General Fund, and for the
maintenance of the departments of the municipal government of the City of Tukwila for the
fiscal year beginning January 1, 2012.
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A
Section 2. Collection. This ordinance shall be certified to the proper County
officials, as provided by law, and taxes here levied shall be collected to pay to the Finance
Director of the City of Tukwila at the time and in the manner provided by the laws of the
State of Washington for the collection of taxes for non chartered code cities.
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 and effect
January 1, 2012.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of 2011.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY:
Shelley M. Kerslake, City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, INCREASING THE CITY OF
TUKWILA REGULAR LEVY FROM THE PREVIOUS YEAR,
COMMENCING JANUARY 1, 2012, ON ALL PROPERTY,
BOTH REAL AND PERSONAL, IN COMPLIANCE WITH
RCW 84.55.120; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City of Tukwila has properly given notice of a public hearing held on
November 14, 2011, pursuant to RCW 84.55.120; and
WHEREAS, after hearing and duly considering all relevant evidence and testimony
presented, the City Council has determined that in order to discharge its expected
expenses and obligations the City requires an increase in property tax revenue from the
previous year, in addition to the increase resulting from the addition of new construction
and improvements to property and any increase in the value of State assessed property;
and
WHEREAS, the City Council has determined it is in the City's best interest and
necessary to meet its expenses and obligations for the property tax revenue to be
increased for 2012, and the final assessed valuation calculation has been determined;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. An increase in the regular property tax levy, in addition to any amount
resulting from the addition of new construction and improvements to property and any
increase in the value of State assessed property, is hereby authorized for the 2012 levy in
the amount of $103,245, which is a percentage increase of 1.0% from the previous year.
This increase is exclusive of additional revenue resulting from new construction,
improvements to property, any increase in the value of State assessed property, any
annexations that have occurred and refunds made.
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63
Section 2. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; or ordinance numbering
and section /subsection numbering.
Section 3. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to be
invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 4. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force and effect
January 1, 2012.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of 1 2011.
ATTEST /AUTH ENTICATED:
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY:
Shelley M. Kerslake, City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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.M i
.p"
LEVY LIMIT WORKSHEET 2012 Tax Roll
TAXING DISTRICT: City of Tukwila
The following determination of your regular levy limit for 2012 property taxes is provided by the King County
Assessor pursuant to RCW 84.55.100.
Annexed to Library District (Note 1) Estimated Library rate:
0.50000
Using Limit Factor
Using Implicit
For District
Calculation of Limit Factor Levy
Price Deflator
13,463,176
Levy basis for calculation: (2011 Limit Factor) (Note 2)
13,463,176
1.0100
x Limit Factor
1.0276
13,597,808
Levy
13,834,086
7,007,838
Local new construction
7,007,838
0
Increase in utility value (Note 3)
0
7,007,838
Total new construction
7,007,838
2.82566
x Last year's regular levy rate
2.82566
19,802
New construction levy
19,802
13,617,610
Total Limit Factor Levy
13,853,888
Annexation Levy
0
Omitted assessment levy (Note 4)
0
13,617,610
Total Limit Factor Levy new lid lifts
13,853,888
4,662,144,321
Regular levy assessed value less annexations
4,662,144,321
2.92089
Annexation rate (cannot exceed statutory maximum rate)
2.97157
0
x Annexation assessed value
0
0
Annexation Levy
0
Lid lifts, Refunds and Total
0
First year lid lifts
0
13,617,610
Limit Factor Levy
13,853,888
13,617,610
Total RCW 84.55 levy
13,853,888
120,206
Relevy for prior year refunds (Note 5)
120,206
13,737,816
Total RCW 84.55 levy refunds
13,974,094
Levy Correction: Year of Error +or
13,737,816
ALLOWABLE LEVY (Note 6)
13,974,094
Increase Information (Note 7)
2.94667 Levy rate based on allowable levy
13,494,563 Last year's ACTUAL regular levy
103,245 Dollar increase over last year other than N/C Annex
0.77% Percent increase over last year other than N/C Annex
Calculation of statutory levy
Regular levy assessed value (Note 8)
x Maximum statutory rate
Maximum statutory levy
+Omitted assessments levy
Maximum statutory levy
Limit factor needed for statutory levy
2.99735
13,494,563
339,523
2.52%
4,662,144, 321
3.10000
14,452,647
0
14,452,647
Not usable
ALL YEARS SHOWN ON THIS FORM ARE THE YEARS IN WHICH THE TAX IS PAYABLE.
Please read carefully the notes on the reverse side.
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LevyLimitWS.doc
65
Notes:
1) Rates for fire districts and the library district are estimated at the time this worksheet is
produced. Fire district and library district rates affect the maximum allowable rate for cities
annexed to them. These rates will change, mainly in response to the actual levy requests
from the fire and library districts. Hence, affected cities may have a higher or lower
allowable levy rate than is shown here when final levy rates are calculated.
2) This figure shows the maximum allowable levy, which may differ from any actual prior levy
if a district has levied less than its maximum in prior years. The maximum allowable levy
excludes any allowable refund levy if the maximum was based on a limit factor. The
maximum allowable levy excludes omitted assessments if the maximum was determined by
your district's statutory rate limit. If your district passed a limit factor ordinance in the year
indicated, that limit factor would help determine the highest allowable levy. However, if the
statutory rate limit was more restrictive than your stated limit factor, the statutory rate limit is
controlling.
3) Any increase in value in state assessed property is considered to be new construction value
for purposes of calculating the respective limits. State assessed property is property
belonging to inter county utility and transportation companies (telephone, railroad, airline
companies and the like).
4) An omitted assessment is property value that should have been included on a prior year's roll
but will be included on the tax roll for which this worksheet has been prepared. Omits are
assessed and taxed at the rate in effect for the year omitted (RCW 84.40.080 -085). Omitted
assessments tax is deducted from the levy maximum before calculating the levy rate for
current assessments and added back in as a current year's receivable.
5) Administrative refunds under RCW 84.69.020 were removed from the levy lid by the 1981
legislature.
6) A district is entitled to the lesser of the maximum levies determined by application of the
limit under RCW 84.55 and the statutory rate limit. Levies may be subject to further
proration if aggregate rate limits set in Article VII of the state constitution and in RCW
84.52.043 are exceeded.
7) This section is provided for your information, and to assist in preparing any Increase
Ordinance that may be required by RCW 84.55.1.20. The increase information compares the
allowable levy for the next tax year with your ACTUAL levy being collected this year. The
actual levy excludes any refund levy and expired temporary lid lifts, if applicable. New
construction, annexation and refund levies, as well as temporary lid lifts in their initial year,
are subtracted from this year's allowable levy before the comparison is made.
8) Assessed valuations shown are subject to change from error corrections and appeal board
decisions recorded between the date of this worksheet and final levy rate determination.
11/02/11 11:59 AM
LevyLimitWS.doc
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Peggy McCarthy, Interim Finance Director
DATE: November 3, 2011
SUBJECT: Mid Biennial Review and Modification of the 2011 -2012 Budget
ISSUE
Adjust the biennial budget to reflect new policies and circumstances, to add appropriations to
funds at risk of exceeding budget in order to remain in compliance with state law, and to
reallocate budget authority among General Fund departments to prevent over budget situations,
consistent with past City practice.
BACKGROUND
The mid biennial budget adjustments are a refinement of the budget and are undertaken
pursuant to TMC 3.30.020 and RCW 35A.34.130. The ordinance amending the budget, if
necessary, must be passed before the end of the calendar year. The purpose and type of
adjustments proposed for the 2011 -2012 budget modification are as follows:
Revenue Backed Expenditures These expenditures have offsetting revenue sources
such as grant revenue.
Reallocation of Budget Among Departments These adjustments reallocate expenditure
budget from departments expected to be under budget to departments at risk of going
over budget.
Council Decisions Budget Additions These adjustments add budget in support of
Council decisions and as a result of circumstances necessitating additional budget.
Carryover of Unused Budget Unused budget is moved from 2011 to 2012.
Accounting Modifications These adjustments move budget from funds and accounts
no longer used to funds and accounts currently used pursuant to changes in accounting
procedures for purposes of streamlining and simplification.
New Initiatives The COPS Bicycle Team initiative is proposed for 2012 and beyond. A
full description of this initiative will be presented by Police Chief Mike Villa under a
separate memorandum.
67
INFORMATIONAL MEMO
Page 2
DISCUSSION
General Fund 000
The revenue backed expenditure adjustments comprise the JAG Recovery Act grant which
funded a portion of the Police mobile command unit; the Emergency Management Program
Grant which will fund various emergency management costs in 2012, and anticipated WCIA
insurance proceeds funding repair costs for a damaged signal pole.
The reallocation of budget among departments transfers budget from departments expected to
be under budget for the year Public Works, Mayor's and Parks Recreation to departments
at risk of going over budget City Attorney, Parks Maintenance and Department 20. City
Attorney special matters account has a $100K budget but actual costs to date of $306K
comprised of $94K for criminal prosecution, $69K for Desc vs. Tukwila DCD, $70K for the Wells
Inverse condemnation, $19K for Reed Trucking and $19K for the Whitcutt arbitration. The
Parks Maintenance salary budget excluded two staff members who were laid off at the end of
2010 but those jobs were reinstated in 2011, thus creating the over budget situation. The
Department 20 claims and judgment account has a budget of $270K and to date expenditures
of $405K comprised of the City's deductible portion of claims of $250K, the Fort Dent/Wells
claim of $67K, and claims attributable to personnel issues of $87K.
The carryover of unused budget moves budget authority from 2011 to 2012 for projects and
initiatives delayed or postponed until 2012. This includes the agenda manager technology
system for the Clerk's office, crime analytical software for the Police Department and
Department 20 transfers to General Government Fund 303 for removal of the flood mitigation
devises and associated trail restoration.
Council decisions or proposals before the Council resulting in added budget or creating new
budget line items include the operating loan advanced to the Metropolitan Park District for
$375K in 2011 and not to exceed $725K in 2012 (this loan will be paid back beginning in 2013);
$166K additional funding of the Reserve Fund 105 and a proposed $175K funding of a new
permit system for the Community Development department. The latter initiative will be funded
through assessment of a permit technology fee after implementation of the system. An
additional $550K transfer -out to the Golf Course Fund is also proposed (see Golf Course Fund
411 below for further explanation). This 2011 transfer can be funded by a $250K budget
savings within the transfers -out account (debt service was budgeted for the SCORE bonds but
was paid for through SCORE start -up funds and not charged to the City) and by a $300K use of
ending fund balance. The additional transfer -out to the Golf Course proposed for 2012 is $355K
comprised of budgeted debt service costs of $351 and budgeted indirect cost allocation costs of
$228K less the existing budget for the General Fund transfer of $225K.
The new initiative would create a bicycle patrol team for the Tukwila International Boulevard
neighborhood to increase police presence in the area. Police Chief Mike Villa will provide full
details of the initiative under a separate memorandum.
HotellMotel Tax Fund 101
The revenue backed Rock N Roll marathon expenditure for professional services is offset by
revenue received from the marathon sponsors, the Competitor Group.
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68
INFORMATIONAL MEMO
Page 3
Street Fund 103
The expenditure budget carryover of $103K to 2012 is for the design work on 42 Ave S from
Southcenter Blvd to S 160 These costs will be funded through ending fund balance.
Arterial Street Fund 104
The revenue backed expenditure adjustment is for an anticipated grant that will be used to
purchase land right of way for redesign of Andover Park West in connection with the Tukwila
Transit Center project. If the grant is obtained and the right of way purchased, an additional
$78K would be needed from the ending fund balance to fund the transaction.
The expenditure budget carryover to 2012 of $9.2 million is primarily for the Southcenter
Parkway extension project. The revenue budget carryover represents proceeds from the LID
bonds that will be issued in 2012 to reimburse the City for the Southcenter Access Project costs.
Contingency (Reserve) Fund 105
Additional funding of the Reserve fund occurred to comply with funding requirements of the
Reserve policy, adopted by Council in 2009.
Debt Service Funds 2
Fund 207 serviced the debt on the 1999 General Obligation bond. This bond was refunded in
2008. The budget adjustment transfers the remaining fund balance of $13,300 to Fund 211, the
fund servicing the refunded debt.
The debt service budget for Fund 215 requires an additional $6K to fully service the 2011 debt.
Therefore, additional budget is added.
Land Acquisition Fund 301
The expenditure budget adjustment represents planned land acquisition in 2012 and is
consistent with the CIP proposal. This purchase will be funded through ending fund balance.
Facility Replacement Fund 302
Unused expenditure budget is moved to 2012; funding will be accomplished through ending
fund balance.
General Government Fund 303
The expenditure budget carryover adjustment moves budget to 2012 for the removal of the flood
mitigation devices the Hesco barriers and Super Sacks and the associated trail restoration.
Expenditure budget is added for the bond funded emergency management measures
undertaken in 2011 that were not budgeted including $199K for the 6300 building generator,
$104K for the Police incident command vehicle and $273K for the new phone system.
Water Fund 401
Expenditure budget is added to the 1995 revenue bond principal payment account as a result of
Council approval of the early redemption of the 1995 revenue bond.
WA2011 Info Memos- Council\Year End BudgetAmendment 11 -2 -11 a.doc
•9
INFORMATIONAL MEMO
Page 4
The accounting modification change moves debt service accounting to the appropriate utility
funds (Funds 401, 402 and 412) from the Water Sewer Revenue Bond Fund 404 to simplify
and streamline the accounting process.
Sewer Fund 402
Unused expenditure budget for the Interurban Avenue gravity sewer project and other projects
is moved to 2012.
Additional budget is added to the Fund to cover the cost of the Andover Park West emergency
sewer repair project.
The accounting modification change moves debt service accounting to the appropriate utility
funds (Funds 401, 402 and 412) from the Water Sewer Revenue Bond Fund 404 to simplify
and streamline the accounting process.
Water/ Sewer Revenue Bonds Fund 404
The accounting modification change moves debt service accounting to the appropriate utility
funds (Funds 401, 402 and 412) from the Water Sewer Revenue Bond Fund 404 to simplify
and streamline the accounting process.
Golf Fund 411
Expenditure budget is added to support the $114K golf cart purchase. Revenue budget is
added for 2011 through a transfer in from the General Fund to alleviate the current cash deficit
of $279K and cover the December debt service payment of $262K. As has been discussed
before by Administration and Council, the budgeted transfer in from the General Fund of $225K
is not sufficient to cover the General Fund indirect cost allocation charge of $221K and the
annual debt service costs of $333K. The cash deficit is a result of underfunding in 2010 as well
as 2011. The additional transfer -in proposed for 2012 is $355K comprised of budgeted debt
service costs of $351 and budgeted indirect cost allocation costs of $228K less the existing
budget for the General Fund transfer -in of $225K.
Surface Water Fund 412
Unused expenditure budget is moved to 2012; funding will be accomplished through ending
fund balance.
RECOMMENDATION
The Council is being asked to approve the 2011 -2012 mid biennial budget amendment and
consider this item at the November 28, 2011 Committee of the Whole meeting and the
December 5, 2011 Regular meeting.
ATTACHMENTS
Draft Ordinance
2011 -2012 Mid Biennium Budget Amendment
M2011 Info Memos- Council\Year End Budget Amendment 11 -2 -11 a.doc
70
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2319,
WHICH ADOPTED THE CITY OF TUKWILA'S BIENNIAL
BUDGET FOR THE 2011 -2012 BIENNIUM, TO ADOPT AN
AMENDED MID BIENNIUM BUDGET; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on November 22, 2010, Ordinance No. 2319 adopted the 2011 -2012
biennial budget of the City of Tukwila; and
WHEREAS, a mid biennium budget amendment was presented to the City Council
in a timely manner for their review, in accordance with RCW 35A.34.130; and
WHEREAS, a public hearing on the proposed mid biennium budget amendment
was advertised and held on November 28, 2011;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Ordinance Amended. Tukwila Ordinance No. 2319 is hereby amended
with the City Council's adoption of the document entitled "City of Tukwila 2011 -2012
Mid Biennium Budget Amendment," incorporated by this reference as if fully set forth
herein, in accordance with RCW 35A.33.075.
Section 2. Estimated Revenues and Appropriations. The totals of the estimated
revenues and appropriations for each separate fund and the aggregate totals are as
follows:
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REVENUES
$114,735,077
$3,796,633
$49,602,266
$4,055,708
$1,681,171
$386,900
$0
$5,210,278
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71
FUND
EXPENDITURES
000
General
$114,735,077
101
Hotel /Motel Tax
$3,796,633
104
Arterial Street
$49,602,266
105
Contingency
$4,055,708
211
LTGO Refunding Bonds, 2008
$1,681,171
215
Limited Tax G.O. Bonds, 2010B
$386,900
404
Water /Sewer Revenue Bonds
$0
411
Foster Golf Course
$5,210,278
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REVENUES
$114,735,077
$3,796,633
$49,602,266
$4,055,708
$1,681,171
$386,900
$0
$5,210,278
Page 1 of 2
71
Section 3. Copies on File. A complete copy of the final budget for 2011 -2012, as
adopted, together with a copy of this amending ordinance, shall be kept on file in the
City Clerk's Office, and a copy shall be transmitted by the City Clerk to the Division of
Municipal Corporations of the Office of the State Auditor and to the Association of
Washington Cities.
Section 4. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; or ordinance numbering
and section /subsection numbering.
Section 5. Severability. If any section, subsection, paragraph, sentence, clause
or phrase of this ordinance or its application to any person or situation should be held to
be invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 6. Effective Date. This ordinance or a summary thereof shall be
published in the official newspaper of the City, and shall take effect and be in full force
and effect five days after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of 2011.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk
Jim Haggerton, Mayor
APPROVED AS TO FORM BY:
Office of the City Attorney
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Attachment: City of Tukwila 2011 -2012 Mid Biennium Budget Amendment
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72
CITY OF TUKWILA
2011 -2012 MID BIENNIUM BUDGET AMENDMENT
SUMMARY
73
2011 -2012
Mid Biennial
Adjusted
Adopted
Budget
2011 -2012
Budget
Adjustment
Budget
Fund
000
General
114,498,450
236,627
114,735,077
101
Hotel /Motel Tax
3,758,033
38,600
3,796,633
103
City Street
1,535,171
1,535,171
104
Arterial Street
49,186,266
416,000
49,602,266
105
Contingency
3,889,448
166,260
4,055,708
107
Fire Equipment Cumulative Reserve
1,673,041
1,673,041
109
Drug Seizure Fund
614,000
614,000
207
Limited Tax G.O. Bonds, 1999
208
Limited Tax G.O. Bonds, 2000
209
Limited Tax G.O. Bonds, 2003
1,186,922
1,186,922
210
Limited Tax G.O. Refunding Bonds, 2003
1,002,825
1,002,825
211
Limited Tax G.O. Refunding Bonds, 2008
1,667,871
13,300
1,681,171
212
Limited Tax G.O. Bonds, 2009A
60,350
60,350
213
Limited Tax G.O. Bonds, 2009B
509,043
509,043
214
Limited Tax G.O. Bonds, 2010A
789,750
789,750
215
Limited Tax G.O. Bonds, 2010B
380,900
6,000
386,900
216
Limited Tax G.O. Refunding Bonds Valley Com
403,900
403,900
301
Land Acquisition, Recreation Park Development
9,792,015
9,792,015
302
Facility Replacement
3,891,877
3,891,877
303
General Government Improvements
3,658,109
3,658,109
304
Fire Improvements
430,300
430,300
401
Water
17,413,433
17,413,433
402
Sewer
15,802,626
15,802,626
404
Water /Sewer Revenue Bonds
1,322,822
(1,322,822)
405
Bond Reserve
822,000
822,000
411
Foster Golf Course
4,305,278
905,000
5,210,278
412
Surface Water
9,867,549
9,867,549
501
Equipment Rental
11,418,895
11,418,895
502
Insurance Fund
17,563,949
17,563,949
503
Insurance LEOFF 1 Fund
3,754,886
3,754,886
611
Firemen's Pension
2,995,616
2,995,616
Total
284,195,325
458,965
284,654,290
73
CITY OF TUKWILA
2011 -2012 MID BIENNIUM BUDGET AMENDMENT
DETAIL
74
Biennial Budget
Increase (Decrease)
2011
2012
Revenues Expenditures
Revenue Backed Expenditures
Revenue.
JAG Recovery Act Mobile Command Unit
000.339.216.80.40
104,417
EMPG grant
000.333.970.42.00
82,210
Signal pole damage to be reimbursed by insurance
(WCIA)
000.344.100.00.00
50,000
Total Revenue
154,417
82,210
236,627
Expenditures
JAG Recovery Act Mobile Command Unit
000.10.594.216.64.00
previously not budgeted
104,417
Emergency Management CERT Trainer other
000.11.525.600.xx.xx
82,210
Repair costs Signal pole
000.16.594.440.64.00
50,000
Total Expenditures
154,417
82,210
236,627
Reallocation of Budget Among Departments
Expenditures:
City Attorney
Special Matters
000.06.515.200.41.03
160,000
Parks Maintenance:
Salaries
000.15.576.800.11.00
60,000
Dept 20
Claims and judgements
000.20.514.230.49.03
100,000
Public Works
Unallocated budget reduction
000.13.532.100.00.05
(120,000)
Mayors
Unallocated budget reduction
000.03.513.100.00.05
(90,000)
Parks Recreation
Unallocated budget reduction
000.07.574.200.00.05
(110,000)
Total Expenditures
Carryover of Unused Budget
Expenditures:
City Clerk Agenda Manager technology system
000.03.514.300.64.00
(21,000)
21,000
Police Crime Analytical Software
000.10.594.100.64.00
(15,000)
15,000
Dept 20 Transfers -out (Fund 303, Gen Govt)
000.20.597.000.00.00
(2,000,000)
2,000,000
Est Ending Unreserved Fund Balance
000.20.291.840.00.00
2,036,000
(2,036,000)
Total Expenditures
Council Decisions l Budget Additions
Expenditures:
Dept 20 Transfers -out (Fund 105, Reserve)
000.20.597.000.00.00
166,260
Dept 20 Transfers -out (Fund 411, Golf course Fund)
000.20.597.000.00.00
550,000
355,000
Dept 20 TransferS -OUt (Fund 212 and 213 SCORE debt
service)
000.20.597.000.00.00
(250,000)
Dept 20 Transfers -out (Fund 215, debt service)
000.20.597.000.00.00
6,000
Dept 20 Loan to Park District
000.20.599.000.xx.xx
375,000
725,000
DCD Proposed Permit System
000.08.xxx.xxx.xx.xx
175,000
Est Ending Unreserved Fund Balance
000.20.291.840.00.00
(847,260)
(1,255,000)
Total Expenditures
New Initiatives COP Bicycle Team
Expenditures
Police Department:
Salaries and benefits for 3 officers
000.10.xxx.xxx.xx.xx
345,000
Care and custody of prisoners (SCORE savings)
000.10.523.600.51.00
(125,000)
Est Ending Unreserved Fund Balance (2011 carry
over)
000.20.291.840.00.00
(220,000)
Fund Total
74
CITY OF TUKWILA
2011 -2012 MID BIENNIUM BUDGET AMENDMENT
DETAIL
2011 2012
Revenue Backed Expenditures
Revenue
Other Revenue Competitor Group 101.369.900.00.00 38,600
Total Revenue 38,600
Expenditures
Professional services Rock N Roll Marathon 101.00.557.302.41.00 38,600
Total Expenditures 38,600
FUND TOTAL
Biennial Budget
Increase (Decrease)
Revenues Expenditures
38,600
38,600
Carryover of Unused Budget
Expenditures
Professional Services
103.98.595.800.41.00
(130,000)
130,000
Est Ending Unreserved Fund Balance
103.01.291.840.00.00
130,000
(130,000)
Total Expenditures
FUND TOTAL
Revenue Backed Expenditures
Revenue
Grant Revenue Tukwila Urban Center
104.333.203.XX.XX
416,000
Total Revenue
416,000
416,000
Expenditures
Professional services Rock N Roll Marathon
104.98.595.800.61.00
494,000
Est Ending Unreserved Fund Balance
104.01.291.840.00.00
(78,000)
Total Expenditures
416,000
416,000
FUND TOTAL
Carryover of Unused Budget
Revenue:
Debt proceeds
104.391.100.00.00
(9,230,000)
9,230,000
Total Revenue
(9,230,000)
9,230,000
Expenditures
Professional Services Construction Southcenter
Parkway
104.98.595.800.xx.xx
(9,230,000)
9,230,000
Total Expenditures
(9,230,000)
9,230,000
Fund total
Council Decisions /Budget Additions
Revenue:
Transfer in General Fund
105.397.000.00.00
166,260
Total Revenue
166,260
166,260
Expenditure
Est Ending Unreserved Fund Balance
105.00.291.840.00.00
166,260
Total Expenditures
166,260
166,260
Fund total
75
CITY OF TUKWILA
2011 -2012 MID BIENNIUM BUDGET AMENDMENT
DETAIL
Biennial Budget
Increase (Decrease)
2011 2012 Revenues Expenditures
e t e ,s.......,.y ice" x
Accounting Modifications:
Expenditure:
Transfer out
207.00.597.000.00.00
13,300
Est Ending Unreserved Fund Balance
207.00.291.840.00.00
(13,300)
Total Expenditures
Fund 207 total
Revenue:
Transfer in Fund 207
211.397.000.00.00
13,300
Total Revenue
13,300
Expenditure:
Est Ending Unreserved Fund Balance
211.00.291.840.00.00
13,300
Total Expenditures
13,300
Fund 211 total
Council Decisions I Budget Additions
Revenue:
Transfer in General Fund
215.397.000.00.00
6,000
Total Revenue
6,000
Expenditure:
Principal payment
215.00.592.950.83.00
6,000
Total Expenditures
6,000
Fund total
Council Decisions l Budget Additions
Expenditure:
Land
301.98.594.760.61.00
Est Ending Unreserved Fund Balance
301.00.291.840.00.00
Total Expenditures
Fund total
Carryover of Unused Budget
Expenditure:
Construction project
302.98.594.190.xx.xx
(87,000)
Est Ending Unreserved Fund Balance
302.00.291.840.00.00
87,000
Total Expenditures
Fund total
1:3
Carryover of Unused Budget
Revenue:
Transfer in General Fund
303.397.000.00
(2,000,000)
Total Revenue
(2,000,000)
Expenditure:
Professional Services construction projects
303.98.594.190.xx.xx
(2,000,000)
Council Decisions I Budget Additions
Construction Projects
303.98.594.190.65.00
600,000
Est Ending Unreserved Fund Balance
303.00.291.840.00.00
(600,000)
Total Expenditures
(2,000,000)
Fund total
ftM t
Council Decisions I Budget Additions
Expenditure:
1995 Revenue bond principal ($1,370,000 payoff
less December payment)
401.01.597.720.00.00
1,080,000
1995 Revenue bond principal
401.01.597.720.00.00
1995 Revenue bond interest
401.01.597.820.00.00
Est Ending Working Capital
401.02.293.800.00.00
(1,080,000)
Accounting Modification
2006 Revenue bond principal
401.01.597.720.01.00
2006 Revenue bond interest
401.01.597.820.01.00
2006 Revenue bond principal
401.02.582.347.72.00
2006 Revenue bond interest
401.02.592.347.83.00
Total Expenditures
Fund total
13,300
13,300
6,000
6,000
1,000,000
(1,000,000)
87,000
(87,000)
2,000,000
2,000,000
2,000,000
2,000,000
(310,000)
(80,494)
390,494
(33, 800)
(29,627)
33,800
29,627
76
CITY OF TUKWILA
2011 -2012 MID BIENNIUM BUDGET AMENDMENT
DETAIL
INCREASE IN BIENNIAL BUDGET 458,965 458,965
77
Biennial Budget
Increase (Decrease)
2011
2012
Revenues Expenditures
Carryover of Unused Budget
Expenditure:
Construction Projects
402.98.594.353.65.00
(120,000)
120,000
Est Ending Working Capital
402.02.293.800.00.00
120,000
(120,000)
Council Decisions l Budget Additions
Professional Services
402.98.594.353.xx.xx
416,000
Est Ending Working Capital
402.02.293.800.00.00
(416,000)
Accounting Modification
2006 Revenue bond principal
402.01.597.720.01.00
(80,600)
2006 Revenue bond interest
402.01.597.820.01.00
(70,649)
2006 Revenue bond principal
402.02.582.357.72.00
80,600
2006 Revenue bond interest
402.02.592.357.83.00
70,649
Total Expenditures
Fund total
P i
w
Accounting Modification
Revenue:
Investment interest
404.361.110.00.00
(60)
(60)
1995 Revenue bond principal Water /Sewer
404.397.720.00.00
(283,250)
(291,748)
2006 Revenue bond principal Water /Sewer
404.397.720.01.00
(123,600)
(127,308)
1995 Revenue bond interest Water /Sewer
404.397.820.00.00
(117,264)
(120,782)
2006 Revenue bond interest Water /Sewer
404.397.820.01.00
(127,463)
(131,287)
Total Revenue
(651,637)
(671,185)
(1,322,822)
Expenditure:
Est Ending Working Capital
404.00.293.800.00.00
(53,435)
(77,341)
1995 Revenue bond principal Water /Sewer
404.00.582.380.72.00
(290,000)
(310,000)
2006 Revenue bond principal Water /Sewer
404.00.582.380.72.01
(105,600)
(105,600)
1995 Revenue bond interest Water /Sewer
404.00.592.380.83.00
(92,068)
(71,937)
2006 Revenue bond interest Water /Sewer
404.00.592.380.83.01
(104,310)
(99,896)
General Government transfer to General Fund
404.00.597.190.00.00
(6,224)
(6,41 1)
Total Expenditures
(651,637)
(671,185)
(1,322,822)
Fund total
Council Decisions l Budget Additions
Revenue:
Transfer in General Fund
411.397.190.00.00
550,000
355,000
905,000
Total Revenue
550,000
355,000
Expenditure:
Small Tools Minor Equipment
411.00.576.680.35.00
114,210
Est Ending Working Capital
411.00.293.800.00.00
435,790
355,000
Total Expenditures
550,000
355,000
905,000
Fund total
1
Carryover of Unused Budget
Expenditures:
Professional Services
412.98.594.382.41.00
(225,000)
225,000
Land
412.98.594.382.61.00
(40,000)
40,000
Construction Projects
412.98.594.382.65.00
(333,000)
333,000
Est Ending Working Capital
412.02.293.800.00.00
598,000
(598,000)
Fund total
INCREASE IN BIENNIAL BUDGET 458,965 458,965
77
x
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Peggy McCarthy, Interim Finance Director
DATE: November 2, 2011
SUBJECT: Reduction of Liability Insurance Deductible
ISSUE
Reduce the City's liability insurance deductible from $100,000 to $25,000 for 2012 and beyond.
BACKGROUND
Washington Cities Insurance Authority (WCIA), the City's liability insurance provider, prepared
an analysis comparing total costs to the City using a $25,000, $50,000 and $100,000 deductible
scenario, the City's actual claim history from 2006 through 2010, and the increase in insurance
premiums under each of these scenarios. The City's current deductible amount is $100,000.
DISCUSSION
The analysis demonstrates that if the City had had a deductible of $25,000 rather than the
$100,000 over this period of time, the City would have saved $264,568 ($3,145,042 total under
the $100,000 deductible scenario versus $2,880,474 total under the $25,000 scenario). To
realize these potential cost savings, staff recommends reducing the deductible to $25,000 for
2012 and re- evaluating the issue in the fourth quarter of 2012.
A revised Memorandum of Understanding (MOU) between WCIA and the City has been drafted
and includes the reduced deductible amount of $25,000; the Memorandum has been signed by
the City Attorney. The Council is being asked to authorize the Mayor to sign the agreement.
RECOMMENDATION
The Council is being asked to consider this item at the November 14, 2011 Committee of the
Whole Council meeting and subsequent November 21, 2011 Regular Council Meeting.
ATTACHMENTS
-Draft Memorandum of Understanding
WCIA's City of Tukwila Assessment Comparison
79
x
1
Memorandum of Understanding
This Memorandum of Understanding (Memorandum) is made and entered this day by and
between the City of Tukwila and Washington Cities Insurance Authority, (WCIA) to clarify
Tukwila and WCIA responsibilities under the WCIA Large Deductible program.
Tukwila as a current member of WCIA, has qualified and has exercised its option to participate
in the Large Deductible Program and will maintain a $25,000 deductible level per occurrence.
I. CLAIMS ADMINISTRATION
During the period or periods of Tukwila participation in the Large Deductible Program,
WCIA shall continue to represent and act for Tukwila in matters pertaining to the
automobile, errors omissions, police and general liabilities of Tukwila, including the
following:
A. Receive notice of and create files on each claim reported and maintain these files for
Tukwila. Each claim file shall be maintained on a current basis to reflect liabilities,
value, recommended disposition, and desirability of risk.
B. Investigate all claims submitted to WCIA by Tukwila to determine their liability and
settlement value.
C. Request timely payment to WCIA, in accord with payment procedures established
herein. Tukwila will be wholly responsible for providing payment as may be
required for any claims assessed against it, up to $25,000 per occurrence, and /or in
excess of or upon exhaustion of WCIA liability coverage.
D. Maintain and provide Tukwila pertinent data on all claim payments.
E. Promptly report to Tukwila the status of claims in a timely manner.
II. PAYMENT OF CLAIMS
A. Tukwila shall at all times provide funds to WCIA adequate for the payment of
qualified claims or losses and of allocated loss expenses within Tukwila's $25,000
per occurrence deductible to a Deductible Fund (Fund) managed by WCIA. For this
purpose, allocated loss expenses shall mean all costs, charges or expenses of third
parties, incurred by WCIA, its agents or its employees, which are properly
chargeable to a qualified claim or loss including, without limitation, court costs, fees
and expenses of defense attorneys, independent investigators, experts and witnesses,
and fees for obtaining diagrams, reports, documents and photographs.
B. The initial deposit to the Fund of $25,000 was established in 2003. WCIA will
periodically analyze the sufficiency of this amount and may require Tukwila to
adjust the deposit amount to more accurately represent cash flow demands placed
upon the Fund.
C. WCIA will provide Tukwila with monthly reports detailing all expenditures charged
to this Fund. Tukwila will have ten (10) working days from the date of this
notification to reimburse the Fund to its required deposit level, as established in
clause B above, by wiring finds to WCIA's bank account.
D. In the event that the Fund is impacted by an unusually large volume of current or
pending claims or expenses, and upon special notice from WCIA detailing the nature
of this unusual demand and the amounts thereof, Tukwila will wire transfer the
requested amount within ten (10) days to avoid the possibility of a negative balance
in the Fund.
E. It is expressly understood that WCIA shall not be required to advance its own funds
to pay losses, allocated loss expenses or banking charges within the Deductible level,
or to perform any services hereunder if Tukwila fails to provide adequate funds as
herein set forth.
F. Reimbursement of the Fund not received within ten (10) days of written notification
will be charged a finance fee of 1
III. TERM
This Memorandum shall become effective on January 1, 2012 and shall continue to be in
force as long as Tukwila continues as a WCIA member participating in the Large
Deductible program.
IV. GENERAL PROVISIONS
A. WCIA shall continue to have full authority to negotiate and settle claims within
Tukwila's deductible level, and up to WCIA coverage limits without prior approval
from Tukwila. WCIA, where possible, shall review all claims with Tukwila prior to
settlement.
B. WCIA shall continue to have full authority to appoint and retain defense attorneys to
defend Tukwila on any claim or lawsuit tendered to WCIA under this Memorandum
and to control the defense of said claims or lawsuits.
C. All claims and related files generated by WCIA as a result of its activity under this
Memorandum shall remain at all times the property of WCIA. All such files will be
available at WCIA offices for review and inspection by agents of Tukwila.
D. It is understood and agreed by the parties that a claim has occurred when the
incident, accident or event giving rise to the claim has occurred. The fact that the
claimant may not report the claim until some subsequent time or that Tukwila might
not report it to WCIA until some Subsequent time does not change the meaning of
whe►i the claim occurred for purposes of this Memorandum. Any claim that occurs
during a coverage year in which Tukwila is a participant in the Large Deductible
program shall be administered and handled by WCIA per the provisions of this
memorandum.
RN
E. Nothing in this Memorandum changes, alters or relieves WCIA or Tukwila of their
duties and obligations as set forth in the WCIA Interlocal signed by all member cities
of WCIA, or the Bylaws, Joint Protection Program and Coverage Document that was
approved by the membership.
F. Any changes in deductible status or levels cannot be implemented until the
conclusion of the calendar fiscal coverage year.
G. Tukwila shall keep the Fund replenished until all claims covered under this
Memorandum have been fully resolved or release WCIA from any further liability to
administer, defend or pay said claims within the deductible layer.
WASHINGTON CITIES INSURANCE AUTHORITY
LEWIS E. LEIGH, Executive Director Date
CITY OF Tukwila
Authorized Signature Date
APPROVED AS TO FORM:
Mark Bucklin, Authority Counsel
APPROVED AS TO FORM:
ao-d I -L-LA -Qi
Shelley Kerslake, Kenyon Disend
Tukwila City Attorney
x
City of Tukwila Assessment Comparison
1/1/2006- 12/31/2010 as of 9 -8 -11
Note
*Claims capped at $25,000 $50,000 $100,000 respectively
*Multiple claimants for each occurrence considered
*Statutes have not run on all years and not all claims have matured
May be rounding errors as no decimals
(A) Claims (B) (C)., (D), (E) (F)
No Deductible Deductible 2006 2010 LTD:I'ncurred Total cost of Difference in Cost
year Proposed Program to City. (E)
Year Assessment Assessment by year w /Applicable (B)
$25,000 Deductible
2006
573,242
468,339
175,448
643,787
70,545
2007
531,720
434,415
150,418
584,833
53,113
2008
481,392
393,297
82,700
475,997
(5,395)
2009
549,411
448,869
148,723
597,592
48,181
2010
580,880
474,579
103,686
578,265
(2,615)
Total
2,716,645
2,219,499
660,975
2,880,474
163,829
$50,000 Deductible
2006
573,242
423,053
300,448
723,501
150,259
2007
531,720
392,409
211,408
603,817
72,097
2008
481,392
355,267
157,700
512,967
31,575
2009
549,411
405,465
232,627
638,092
88,681
2010
580,880
428,689
132,436
561,125
(19,755)
Total
2,716,645
2,004,884
1,034,619
3,039,503
322,858
$100,000 Deductible
2006
573,242
330,187
473,783
803,970
230,728
2007
531,720
321,449
311,408
632,857
101,137
2008
481,392
303,277
267,700
570,977
89,585
2009
549,411
344,481
299,595
644,076
94,665
2010
580,880
360,726
132,436
493,162
(87,718)
Total
2,716,645
1,660,120
1,484,922
3,145,042
428,397
Effect of change from
$100K deductibe
to $50K
2006
(92,866)
173,335
80,469
2007
(70,960)
100,000
29,040
2008
(51,990)
110,000
58,010
2009
(60,984)
66,968
5,984
Effect of change from $100K deductibe to $25K
2006 138,152 (298,335) (160,183)
2007 112,966 (160,990) (48,024)
2008 90,020 (185,000) (94,980)
2009 104,388 (150,872) (46,484)
Premium goes up by if change Out -of- pocket claims expenses Savings (lower claims expenses partial
from $100K to $25K deductible go down with lower deductible offset by higher WCIA assessment)
i
x
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Jim Haggerton
Finance and Safety Committee
FROM: Mike Villa, Chief of Police
DATE: October 31, 2011
SUBJECT: Community Oriented Policing (COP) Bicycle Team
ISSUE
The Police Department would like to add three full time police officer positions to our current
staffing —two Community Oriented Policing (COP) Bicycle Officers and One TAC Team
Detective. The purpose of these officers is to enhance safety on Tukwila International Boulevard
(TIB) through increased police visibility, proactive enforcement of laws, and problem solving with
community stakeholders to reduce and prevent crimes.
BACKGROUND
In 1996, the Police Department implemented a COP Bicycle Team on TIB. It was an effective
tool in uniting the community along the corridor and driving down crime. City -wide violent crime
dropped 27% from 1996 to 1997. The team grew to four officers, but with competing interests
and demands, the department could not sustain the team and the members were absorbed into
patrol and other units. This was in part due to a decrease in staffing. From 2001 to 2003, the
department went from 71 officers to 68 officers where it remains today.
The Tukwila Anti -Crime (TAC) Team absorbed two of the original bike positions. This team is
dedicated primarily to city -wide gang, narcotics, gambling, and vice enforcement. However, the
TAC Team resources have decreased over the last several years. From 2005 to 2010 we did
not fill the TAC Team uniformed officer position due to patrol shortages and that position was
dissolved by the end of 2010. We then eliminated a TAC Team detective position in 2011 due to
budget reductions.
The reductions in these assets have decreased our enforcement and problem solving
capabilities along Tukwila International Boulevard.
DISCUSSION
Tukwila International Boulevard and its surroundings continue to be an area in which we see a
greater level of crime than other areas in the city. In the last 36 months, there were 322
narcotics investigations, 231 prostitution cases, and 143 robberies. We average four robberies
a month in the area from Southcenter Boulevard to S. 130 Street and 42n Avenue S. to the
west city limits. So far this year there has been a decrease in narcotic and prostitution cases.
However, this decrease is mostly reflective of our lack of enforcement activities due to staffing.
Reports from our patrol staff is that the activity level has either remained the same over the past
year or slightly increased. Citizen reports tend to reflect an increase in open drug transactions,
pan handling, loitering, and prostitution, as well as a general feeling of a lack of personal safety.
:A
INFORMATIONAL MEMO
Page 2
Since the annexations in the early 1990's we have lacked the consistent resources necessary to
adequately address the criminal issues along that corridor and at the same time maintain
expected levels of service throughout the city. A staffing analysis conducted by the department
in 2008 and again in 2011 revealed that our department was significantly understaffed. One
measure that compared crime rates indicated that we should employ 90 officers to provide
similar levels of service as our surrounding jurisdictions.
In addition to the above, although our authorized staffing level is 68 officers, only 59 of those are
deployable at this present time. There are three officers in training, two on military leave, and
another four on leave for other purposes. Unfortunately, this disparity between authorized
staffing and actual staffing has been a constant reality for many years. It is not uncommon to
have officers in training, on medical leave or military duty, or out for some other administrative
purpose.
A contributing factor to the aforementioned is that we experience an average attrition of three
experienced officers per year. I anticipate that number will increase with our increasing average
age and tenure of officers. We lose another 1.5 officers during their initial training per year. As it
takes approximately one year to hire an entry level officer from time of interview to working solo
we regularly have two to five officers in background or training. These officers are counted as
part of our regular staffing. Since May of this year, we have implemented a more aggressive
hiring strategy of pipeline officers unfunded positions —in hopes of getting ahead of this curve.
Without hiring pipeline officers we will never get close to a full complement.
There are long- standing crime issues on TIB and our department lacks sufficient staffing to
address the issues. There are three strategies that we recommend. (1) The first strategy is to
continue to hire the four pipeline officers as mentioned above. This strategy is already in
progress. (2) The second strategy we could implement as early as the first quarter of 2012 and
is a two person bike team on TIB. (3) A third related strategy is to refill the TAC team detective
position that was cut from the budget at the beginning of 2011. Our decrease of proactive
enforcement of narcotic violations and prostitution is a direct result of that prior reduction in
staffing.
FUNDING
In order to implement, we would need to fund salaries, benefits, and overtime for three full time
officer positions. The department would absorb all the other ancillary costs associated with
these positions. Salaries and benefits for one officer for 2012 is estimated at $105,000.
Overtime should be budgeted at $10,000 per officer. Total cost in 2012 is estimated at
$345,000. This is the cost if the officers are hired on January 1, 2012.
We are proposing to fund the officers with both savings from the 2011 Police Department
budget and with a 2012 adjustment within the PD budget. A $220,000 departmental budget
savings is expected in 2011 that will be used to help fund these positions in 2012. In addition,
we anticipate a savings in 2012 of $125,000 from the jail budget. This amount will be moved to
salaries and benefits as a budget amendment.
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INFORMATIONAL MEMO
Page 3
It is our intent to continue these positions into and beyond 2013. We recognize that the city will
need a sustainable funding source funding the police department at 71 officers.
In addition, beginning in 2014 we will begin to fund the three COP officers hired in 2011. The
COPS Office is currently reimbursing us for their salaries and benefits. We are committed to
fund those officers for 12 months after the grant expires. Although it is the city's intent to fund
these officers past 2014, we will need to evaluate at that time.
RECOMMENDATION
I recommend approval of three full time police officer positions as stated above. Carry over and
an amendment within the Police Department budget will fund these positions in 2012.
City Administrator David Cline and Mayor Jim Haggerton fully support this proposal.
The Council is being asked to consider this item at the November 14, 2011 Committee of the
Whole and November 21, 2011 Regular Meeting to authorize the hiring of three full -time police
officers in 2012 and authorize the funding to be included in the year -end 2011 -2012 budget
amendment.
I appreciate your consideration. Please let me know if you need anything else.
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