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HomeMy WebLinkAboutFIN 2019-11-25 COMPLETE AGENDA PACKETCity of Tukwila Finance Committee O Thomas McLeod, Chair O Verna Seal O De'Sean Quinn AGENDA Distribution: T. McLeod Mayor Ekberg V. Seal D. Cline D. Quinn R. Bianchi K. Hougardy C. 071aherty D. Robertson A. Youn K. Kruller L. Humphrey Z. Idan MONDAY, NOVEMBER 25, 2019 — 5:30 PM HAZELNUT CONFERENCE ROOM (At east entrance of City Hall) Item Recommended Action Page 1. PRESENTATION(S) 2. BUSINESS AGENDA a. A contract with Environmental Systems Research a. Forward to 12/2 Consent Pg.1 Institute, Inc. (Esri) for GIS services. Agenda. Roman Linsao, GIS Coordinator b. 2019 3rd Quarter investment report. b. Discussion only. Pg.11 Aaron Williams, Fiscal Coordinator 3. MISCELLANEOUS 4. ANNOUNCEMENTS Next Scheduled Meeting: Monday, December 9, 2019 [tentative] SThe City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206-433-1800(TukwilaCityClerk(d)TukwilaWA.gov) for assistance. TO: FROM: BY. - CC: DATE: SUBJECT ISSUE City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Finance & Safety Committee Joseph Todd (TIS) Roman Linsao (TIS), Tami Eberle-Harris(TIS) Mayor Ekberg November 25, 2019 ESRI Enterprise License Agreement (ELA) for GIS ESRI Enterprise License agreement expiring on 01/15/2020. BACKGROUND The Council approved the purchase of a two-year Enterprise License with ESRI at the end of 2017. The contract was valid from Jan 2018 — Jan 2020. The City of Tukwila has realized substantial growth in areas of GIS during the past two years. This proposal details the advantages of continuing the relationships and licensing for an additional two-year period. DISCUSSION By utilizing the ELA, we were able to expand GIS capabilities with limited staff resources by providing access to ArcGIS online to more staff members around the City, enabling self- service and productivity in several areas. GIS has been tightly integrated with Lucity Asset management and users are realizing the benefits of utilizing GIS in the field. ArcGIS Collector and web maps were rolled out for gathering GIS data in the field for Public Works (bus stops, signs and various other assets), dashboards were created for analyzing Code Compliance and Permitting, the use of Tukwila iMap was expanded, and we are currently developing a process for private GIS assets to be managed directly by Public Works staff. Planning and Development staff members report that the use of ArcGIS online has been integral to the Tukwila International Boulevard project, making it easy to collaborate with teams both within and outside of the City without having to print a single item. Some of the tools that have been extremely helpful are walkshed, demographic, and drive -time analyses. ArcGIS online has also made it easier to navigate files, ensuring that maps/data are centralized and easy to find, and has been helpful for providing maps/graphics to applicants, providing rough idea of feasibility of a site, potential building envelopes, etc. to help guide their projects. This is just one example of how having the ESRI Enterprise License Agreement has enhanced productivity and directly supported residents of Tukwila. Providing the Enterprise License Agreement is continued, additional opportunities will be realized. Expansion of the internal asset data collection efforts by Public Works and Parks staff will be possible. Staff will have access to tools to create and develop more dashboards to provide management with key metrics and reporting across multiple areas. INFORMATIONAL MEMO Page 2 FINANCIAL IMPACT The Enterprise agreement includes uncapped quantities of Desktop software and developer tools, 10,000 online service credits, 100 user named licenses for ArcGISOnline, and multiple software extensions. The cost shown in the attached quote covers the two-year period in an amount not to exceed $55,000. The total over two -years is below the current allocated budget in TIS for Professional services (budgeted $180,000 for 2019 and 2020) RECOMMENDATION The committee is being asked to consider the 2-year ESRI ELA agreement in the amount of $55,000 and forward this item to the December 2, 2019 Regular Meeting Consent Agenda. ATTACHMENTS ESRI Small Enterprise Agreement QuoteQ-39738 ESRI Small Enterprise Agreement County & Municipality Government (E214-1) 2 Z:ICouncil Agenda Items\Technology ServiceslESRI_ELAIMemo_ESRI_ELA.doc THE esriWHENCE WHERE'" Environmental Systems Research Institute, Inc. 380 New York St Redlands, CA 92373-8100 Phone: (909) 793-2853 Fax: (909) 307-3049 DUNS Number: 06-313-4175 CAGE Code: OAMS3 To expedite your order, please attach a copy of this quotation to your purchase order. Quote is valid from: 911712019 To: 1211612019 Material Qty Term 168177 1 Year 1 Quotation # Q-397386 Date: October 2, 2019 Customer # 135074 Contract # City of Tukwila Information Technology Dept 6300 Southcenter Blvd Ste 202 Tukwila, WA 98188 ATTENTION: Joseph Todd PHONE: (206) 433-7150 EMAIL: joseph.todd@tukwilawa.gov Populations of 0 to 25,000 Small Government Term Enterprise License Agreement 168177 Year Populations of 0 to 25,000 Small Government Term Enterprise License Agreement Unit Price $25,000.00 $25,000.00 Total $25,000.00 $25,000.00 Subtotal: $50,000.00 Sales Tax: $5,000.00 Estimated Shipping and Handling (2 Day Delivery): $0.00 Contract Price Adjust: $0.00 Total: $55,000.00 Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program. For questions contact: Email: Phone: Heather Glock hglock@esri.com 909-793-2853 x8948 The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use document found at https://assets.esri com/conteiiUdam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreement with Esri. If no such agreement covers any item quoted, then Esri's standard terms and conditions found at https://Q//Qo.esri.com/MAPS apply to your purchase of that item. Federal government entities and government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri's GSA Federal Supply Schedule. Supplemental terms and conditions found at https://www.esri.coi-n/en-Lis/legal/terms/state-sul)plemental apply to some state and local government purchases. All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri's offerings. Acceptance of this quotation is limited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other purpose without consent from Esri. Delivery is FOB Origin. GLOCKH This offer is limited to the terms and conditions incorporated and attached herein. 3 THE esri WHERE' W Environmental Systems Research Institute, Inc. 380 New York St Redlands, CA 92373-8100 Phone: (909) 793-2853 Fax: (909) 307-3049 DUNS Number: 06-313-4175 CAGE Code: OAMS3 To expedite your order, please attach a copy of this quotation to your purchase order. Quote is valid from: 911712019 To: 1211612019 Quotation # Q-397386 Date: October 2, 2019 Customer # 135074 Contract # City of Tukwila Information Technology Dept 6300 Southcenter Blvd Ste 202 Tukwila, WA 98188 ATTENTION: Joseph Todd PHONE: (206) 433-7150 EMAIL: joseph.todd@tukwilawa.gov If you have made ANY alterations to the line items included in this quote and have chosen to sign the quote to indicate your acceptance, you must fax Esri the signed quote in its entirety in order for the quote to be accepted. You will be contacted by your Customer Service Representative if additional information is required to complete your request. If your organization is a US Federal, state, or local government agency; an educational facility; or a company that will not pay an invoice without having issued a formal purchase order, a signed quotation will not be accepted unless it is accompanied by your purchase order. In order to expedite processing, please reference the quotation number and any/all applicable Esri contract number(s) (e.g. MPA, ELA, SmartBuy, GSA, BPA) on your ordering document. BY SIGNING BELOW, YOU CONFIRM THAT YOU ARE AUTHORIZED TO OBLIGATE FUNDS FOR YOUR ORGANIZATION, AND YOU ARE AUTHORIZING ESRI TO ISSUE AN INVOICE FOR THE ITEMS INCLUDED IN THE ABOVE QUOTE IN THE AMOUNT OF $ , PLUS SALES TAXES IF APPLICABLE. DO NOT USE THIS FORM IF YOUR ORGANIZATION WILL NOT HONOR AND PAY ESRI'S INVOICE WITHOUT ADDITIONAL AUTHORIZING PAPERWORK. Please check one of the following: I agree to pay any applicable sales tax. I am tax exempt, please contact me if exempt information is not currently on file with Esri. Signature of Authorized Representative Date Name (Please Print) Title The quotation information is proprietary and may not be copied or released other than for the express purpose of system selection and purchase/license. This information may not be given to outside parties or used for any other purpose without consent from Environmental Systems Research Institute, Inc, (Esn). Any estimated sales and/or use tax reflected on this quote has been calculated as of the dale of this quotation and is merely provided as a convenience for your organization's budgetary purposes. Esri reserves the right to adjust and collect sales and/or use lax at the actual date of invoicing. If your organization is tax exempt or pays slate lax directly, then prior to invoicing, your organization must provide Esri with a copy of a current lax exemption certificate issued by your state's taxing authority for the given jurisdiction. Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program. For questions contact: Email: Phone: Heather Glock hglock@esri.com 909-793-2853 x8948 The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use document found at https:Hassets esri com/contenUdam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreement with Esri. If no such agreement covers any item quoted, then Esri's standard terms and conditions found at https://go.esri.com/MAPS apply to your purchase of that item. Federal government entities and government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri's GSA Federal Supply Schedule. Supplemental terms and conditions found at https://www.esri.com/en-us/lecial/terms/state-supplemental apply to some state and local government purchases. All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri's offerings. Acceptance of this quotation is limited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other purpose without consent from Esri. Delivery is FOB Origin. GLOCKH This offer is limited to the terms and conditions incorporated and attached herein. 11 Esri Use Only: Cust. Name Cust. # PO # _ Esri Agreement # SMALL ENTERPRISE AGREEMENT COUNTY AND MUNICIPALITY GOVERNMENT (E214-1) 711E .. SGENCE OF \ WHERE' i This Agreement is by and between the organization identified in the Quotation ("Customer") and Environmental Systems Research Institute, Inc. ("Esri"). This Agreement sets forth the terms for Customer's use of Products and incorporates by reference (i) the Quotation and (ii) the Master Agreement. Should there be any conflict between the terms and conditions of the documents that comprise this Agreement, the order of precedence for the documents shall be as follows: (i) the Quotation, (ii) this Agreement, and (iii) the Master Agreement. This Agreement shall be governed by and construed in accordance with the laws of the state in which Customer is located without reference to conflict of laws principles, and the United States of America federal law shall govern in matters of intellectual property. The modifications and additional rights granted in this Agreement apply only to the Products listed in Table A. Table A List of Products Uncapped Quantities Desktop Software and Extensions (Single Use) ArcGIS Desktop Advanced ArcGIS Desktop Standard ArcGIS Desktop Basic ArcGIS Desktop Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS Publisher, ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS Workflow Manager, ArcGIS Data Reviewer Enterprise Software and Extensions ArcGIS Enterprise and Workgroup (Advanced and Standard) ArcGIS Enterprise Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS Workflow Manager Enterprise Additional Capability Servers ArcGIS Image Server Developer Tools ArcGIS Engine ArcGIS Engine Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Engine Geodatabase Update, ArcGIS Network Analyst, ArcGIS Schematics ArcGIS Runtime (Standard) ArcGIS Runtime Analysis Extension Limited Quantities One (1) Professional subscription to ArcGIS Developer* Two (2) Esri CityEngine Advanced Single Use Licenses 50 ArcGIS Online Viewers 50 ArcGIS Online Creators 10,000 ArcGIS Online Service Credits 50 Level 2 ArcGIS Enterprise Named Users 2 Insights for ArcGIS for use with ArcGIS Enterprise 2 Insights for ArcGIS for use with ArcGIS Online OTHER BENEFITS Number of Esri User Conference registrations provided annually 2 Number of Tier 1 Help Desk individuals authorized to call Esri 2 Maximum number of sets of backup media, if requested** 2 Self -Paced e-Learning Uncapped Five percent (5%) discount on all individual commercially available instructor -led training classes at Esri facilities purchased outside this Agreement (Discount does not apply to Small Enterprise Training Package) * Maintenance is not provided for these items **Additional sets of backup media may be purchased for a fee Page 1 of 6 November 20, 2018 5 Customer may accept this Agreement by signing and returning the whole Agreement with (i) the Quotation attached, (ii) a purchase order, or (iii) another document that matches the Quotation and references this Agreement ("Ordering Document"). ADDITIONAL OR CONFLICTING TERMS IN CUSTOMER'S PURCHASE ORDER OR OTHER DOCUMENT WILL NOT APPLY, AND THE TERMS OF THIS AGREEMENT WILL GOVERN. This Agreement is effective as of the date of Esri's receipt of an Ordering Document, unless otherwise agreed to by the parties ("Effective Date"). Term of Agreement: Two (2) years January 16 2020 - January 15, 2022 This Agreement supersedes any previous agreements, proposals, presentations, understandings, and arrangements between the parties relating to the licensing of the Products. Except as provided in Article 4— Product Updates, no modifications can be made to this Agreement. Accepted and Agreed: City of Tukwila (Customer) By: Authorized Signature Printed Name: Title: Date: Contact: Address: City, State, Postal Code: Country: Quotation Number (if applicable): CUSTOMER CONTACT INFORMATION Telephone: Fax: E-mail: Page 2 of 6 November 20, 2018 9 1 .0-ADDITIONAL DEFINITIONS In addition to the definitions provided in the Master Agreement, the following definitions apply to this Agreement: "Case" means a failure of the Software or Online Services to operate according to the Documentation where such failure substantially impacts operational or functional performance. "Deploy", "Deployed" and "Deployment" mean to redistribute and install the Products and related Authorization Codes within Customer's organization(s). "Fee" means the fee set forth in the Quotation. "Maintenance" means Tier 2 Support, Product updates, and Product patches provided to Customer during the Term of Agreement. "Master Agreement" means the applicable master agreement for Esri Products incorporated by this reference that is (i) found at http://www.esri.com/legal/software-license and available in the installation process requiring acceptance by electronic acknowledgment or (ii) a signed Esri master agreement or license agreement that supersedes such electronically acknowledged master agreement. "Product(s)" means the products identified in Table A —List of Products and any updates to the list Esri provides in writing. "Quotation" means the offer letter and quotation provided separately to Customer. "Technical Support" means the technical assistance for attempting resolution of a reported Case through error correction, patches, hot fixes, workarounds, replacement deliveries, or any other type of Product corrections or modifications. "Tier 1 Help Desk" means Customer's point of contact(s) to provide all Tier 1 Support within Customer's organization(s). "Tier 1 Support" means the Technical Support provided by the Tier 1 Help Desk. "Tier 2 Support" means the Esri Technical Support provided to the Tier 1 Help Desk when a Case cannot be resolved through Tier 1 Support. 2.0---,ADDITIONAL GRANT OF LICENSE 2.1 Grant of License. Subject to the terms and conditions of this Agreement, Esri grants to Customer a personal, nonexclusive, nontransferable license solely to use, copy, and Deploy quantities of the Products listed in Table A —List of Products for the Term of Agreement (i) for the applicable Fee and (ii) in accordance with the Master Agreement. 2.2 Consultant Access. Esri grants Customer the right to permit Customer's consultants or contractors to use the Products exclusively for Customer's benefit. Customer will be solely responsible for compliance by consultants and contractors with this Agreement and will ensure that the consultant or contractor discontinues use of Products upon completion of work for Customer. Access to or use of Products by consultants or contractors not exclusively for Customer's benefit is prohibited. Customer may not permit its consultants or contractors to install Software or Data on consultant, contractor, or third -party computers or remove Software or Data from Customer locations, except for the purpose of hosting the Software or Data on Contractor servers for the benefit of Customer. 3.0--TERM, TERMINATION, AND EXPIRATION 3.1 Term. This Agreement and all licenses hereunder will commence on the Effective Date and continue for the duration identified in the Term of Agreement, unless this Agreement is terminated earlier as provided herein. Customer is only authorized to use Products during the Term of Agreement. For an Agreement with a limited term, Esri does not grant Customer an indefinite or a perpetual license to Products. 3.2 No Use upon Agreement Expiration or Termination. All Product licenses, all Maintenance, and Esri User Conference registrations terminate upon expiration or termination of this Agreement. 3.3 Termination for a Material Breach. Either party may terminate this Agreement for a material breach by the other party. The breaching party will have thirty (30) days from the date of written notice to cure any material breach. 3.4 Termination for Lack of Funds. For an Agreement with government or government - owned entities, either party may terminate this Agreement before any subsequent year if Page 3 of 6 November 20, 2018 7 Customer is unable to secure funding through the legislative or governing body's approval process. 3.5 Follow-on Term. If the parties enter into another agreement substantially similar to this Agreement for an additional term, the effective date of the follow-on agreement will be the day after the expiration date of this Agreement. 4.0-PRODUCT UPDATES 4.1 Future Updates. Esri reserves the right to update the list of Products in Table A —List of Products by providing written notice to Customer. Customer may continue to use all Products that have been Deployed, but support and upgrades for deleted items may not be available. As new Products are incorporated into the standard program, they will be offered to Customer via written notice for incorporation into the Products schedule at no additional charge. Customer's use of new or updated Products requires Customer to adhere to applicable additional or revised terms and conditions in the Master Agreement. 4.2 Product Life Cycle. During the Term of Agreement, some Products may be retired or may no longer be available to Deploy in the identified quantities. Maintenance will be subject to the individual Product Life Cycle Support Status and Product Life Cycle Support Policy, which can be found at http://support.esri.com/en/content/productlifecVc] es. Updates for Products in the mature and retired phases may not be available. Customer may continue to use Products already Deployed, but Customer will not be able to Deploy retired Products. 5.0-MAINTENANCE The Fee includes standard maintenance benefits during the Term of Agreement as specified in the most current applicable Esri Maintenance and Support Program document (found at http://www.esri.com/legal). At Esri's sole discretion, Esri may make patches, hot fixes, or updates available for download. No Software other than the defined Products will receive Maintenance. Customer may acquire maintenance for other Software outside this Agreement. a. Tier 1 Support 1. Customer will provide Tier 1 Support through the Tier 1 Help Desk to all Customer's authorized users. 2. The Tier 1 Help Desk will be fully trained in the Products. 3. At a minimum, Tier 1 Support will include those activities that assist the user in resolving how-to and operational questions as well as questions on installation and troubleshooting procedures. 4. The Tier 1 Help Desk will be the initial point of contact for all questions and reporting of a Case. The Tier 1 Help Desk will obtain a full description of each reported Case and the system configuration from the user. This may include obtaining any customizations, code samples, or data involved in the Case. If the Tier 1 Help Desk cannot resolve the Case, an authorized Tier 1 Help Desk individual may contact Tier 2 Support. The Tier 1 Help Desk will provide support in such a way as to minimize repeat calls and make solutions to problems available to Customer's organization. B. Tier 1 Help Desk individuals are the only individuals authorized to contact Tier 2 Support. Customer may change the Tier 1 Help Desk individuals by written notice to Esri. b. Tier 2 Support Page 4 of 6 1. Tier 2 Support will log the calls received from Tier 1 Help Desk. 2. Tier 2 Support will review all information collected by and received from the Tier 1 Help Desk including preliminary documented troubleshooting provided by the Tier 1 Help Desk when Tier 2 Support is required. Tier 2 Support may request that Tier 1 Help Desk individuals provide verification of information, additional information, or answers to additional questions to supplement any preliminary information gathering or troubleshooting performed by Tier 1 Help Desk. 4. Tier 2 Support will attempt to resolve the Case submitted by Tier 1 Help Desk. November 20, 2018 i 5. When the Case is resolved, Tier 2 Support will communicate the information to Tier 1 Help Desk, and Tier 1 Help Desk will disseminate the resolution to the user(s). i.O—ENDORSEMENT AND PUBLICITY This Agreement will not be construed or interpreted as an exclusive dealings agreement or Customer's endorsement of Products. Either party may publicize the existence of this Agreement. 7.0-ADMINISTRATIVE REQUIREMENTS 7.1 OEM Licenses. Under Esri's OEM or Solution OEM programs, OEM partners are authorized to embed or bundle portions of Esri products and services with their application or service. OEM partners' business model, licensing terms and conditions, and pricing are independent of this Agreement. Customer will not seek any discount from the OEM partner or Esri based on the availability of Products under this Agreement. Customer will not decouple Esri products or services from the OEM partners' application or service. 7.2 Annual Report of Deployments. At each anniversary date and ninety (90) calendar days prior to the expiration of this Agreement, Customer will provide Esri with a written report detailing all Deployments. Upon request, Customer will provide records sufficient to verify the accuracy of the annual report. 8.0-ORDERING, ADMINISTRATIVE PROCEDURES, DELIVERY, AND DEPLOYMENT 8.1 Orders, Delivery, and Deployment a. Upon the Effective Date, Esri will invoice Customer and provide Authorization Codes to activate the nondestructive copy protection program that enables Customer to download, operate, or allow access to the Products. If this is a multi -year Agreement, Esri may invoice the Fee before the annual anniversary date for each year. b. Undisputed invoices will be due and payable within thirty (30) calendar days from the date of invoice. Esri's federal ID number is 95-2775-732. If requested, Esri will ship backup media to the ship -to address identified on the Ordering Document, FOB Destination, with shipping charges prepaid. Customer acknowledges that should sales or use taxes become due as a result of any shipments of tangible media. Esri has a right to invoice and Customer will pay any such sales or use tax associated with the receipt of tangible media. 8.2 Order Requirements. Esri does not require Customer to issue a purchase order. Customer may submit a purchase order in accordance with its own process requirements, provided that if Customer issues a purchase order, Customer will submit its initial purchase order on the Effective Date. If this is a multi -year Agreement, Customer will submit subsequent purchase orders to Esri at least thirty (30) calendar days before the annual anniversary date for each year. a. All orders pertaining to this Agreement will be processed through Customer's centralized point of contact. b. The following information will be included in each Ordering Document: (1) Customer name; Esri customer number, if known; and bill -to and ship -to addresses (2) Order number (3) Applicable annual payment due 9.0--MERGERS, ,ACQUISITIONS, OR DIVESTITURES If Customer is a commercial entity, Customer will notify Esri in writing in the event of (i) a consolidation, merger, or reorganization of Customer with or into another corporation or entity; (ii) Customer's acquisition of another entity; or (iii) a transfer or sale of all or part of Customer's organization (subsections i, ii, and iii, collectively referred to as "Ownership Change"). There will be no decrease in Fee as a result of any Ownership Change. 9.1 If an Ownership Change increases the cumulative program count beyond the maximum level for this Agreement, Esri reserves the right to increase the Fee or terminate this Agreement and the parties will negotiate a new agreement. 9.2 If an Ownership Change results in transfer or sale of a portion of Customer's organization, that portion of Customer's organization will transfer Page 5 of 6 November 20. 2018 9 the Products to Customer or uninstall, remove, and destroy all copies of the Products. 9.3 This Agreement may not be assigned to a successor entity as a result of an Ownership Change unless approved by Esri in writing in advance. If the assignment to the new entity is not approved, Customer will require any successor entity to uninstall, remove, and destroy the Products. This Agreement will terminate upon such Ownership Change. Page 6 of 6 November 20, 2018 10 TO: FROM: BY: CC: DATE: SUBJECT ISSUE City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Finance Committee Vicky Carlsen, Finance Director Aaron Williams, Fiscal Coordinator Mayor Ekberg November 25, 2019 2019 3rd Quarter Cash & Investment Report The Quarterly Cash & Investment Report is provided to the Finance Committee in accordance with the City's Investment Policy. SUMMARY OF INVESTMENT POLICY It is the policy of the City of Tukwila to invest public funds in a manner that will provide maximum security with the highest investment return while meeting the daily cash flow demands of the City while conforming to all state and local statutes governing the investment of public funds. INVESTMENT HOLDINGS As of September 30, 2019, the portfolio totaled $62.5 million comprised of $47.8 million in cash and cash equivalents and $14.7 million in longer term investments. The attached "Cash and Investment Report" provides additional details on the cash and investment holdings of the City. Portfolio Allocation 4913012019 Operating Cash LGIP Money Market Certificates of Deposit Government Agencies Municipal Bonds 9.440.983 16% 23.455.958 37% 14.922.058 24% 2.030.132 3% 9.387.528 15% 3.330.255 5% 62.666.912 Portfolio Allocation 12f3112018 Operating Cash LGIP Money Market Certificates of Deposit Government Agencies Municipal Bonds 19.861.884 24% 23.030.920 28% 14.642.046 18% 3.638.311 4% 15.716.262 19% 5.860.630 7% 82.650.051 LAinirinal Governmen Agencies, 15' Certificates of Deposit, a% Money Market, 2 Operating LGIP. 97% 11 INFORMATIONAL MEMO Page 2 INVESTMENT ACTIVITY Year-to-date the city received $705k in interest earnings from the LGIP and Money Market accounts. Longer term investments held by the City paid interest totaling $315k and a combined $9 million in investments either matured or were called in 2019. No new bond investments were made during this time period. Investment income for 2019 is budgeted at $848k, which the City has already exceeded for the year. The portfolio is projected to earn approximately $1.4 million for the year, nearly double the budget for this line item. Additional detail of investment activity is provided below: Investment Activity Interest Earnings ,Jan -Sep LGIP month interest 426-038.43 ,Jan -Sep Money Market interest 280.012_43 705,050.86 Investment Earnings 1!2l2019 WA St Biomed Revenue Bond 12_202_50 V23l2019 Farmer Mac 7.000.00 V30/2019 Federal Home Loan Bank 6.460.00 2l4/2019 Farmer Mac 18.125.00 2j2K019 Federal Home Loan Bank 18.975.00 3iV2019 Port Anacortes WA G0 7.627.90 3.+2KO19 Federal Farm Credit Bank 14.500.00 5/V2019 Seattle WA G0 7.600.00 5/V2019 Port of Seattle WA Revenue 70.000.00 6 9/2019 Federal Farm Credit Bank 20.700.00 6.+3/2019 Douglas Cnty Bch Dist BAB 18.720.00 6±3 2019 Auburn WA G0 BAB 6.742_50 6.+3.2019 Port Tacoma WA G0 6.375.00 6.+3.2019 Burien WA G0 BAB 12_812_50 6.+27.2019 Federal Farm Credit Bank 8.600.00 7.+1/2019 VJA St Biomed Revenue Bond 12_202_50 7.+1/2019 Federal Home Loan Bank 14.366-00 7.+23/2019 Farmer Mac 7.000.00 8/2?2019 Farmer Mac 18.125.00 8±28 2019 Federal Home Loan Bank 18.976-00 9.+3.2019 Port Anacortes WA G0 7.627.90 314,625.80 12 INFORMATIONAL MEMO Page 3 During the next quarter (2019-Q4) there will be four bond investments maturing and two that will be called. Details of called and matured investments are listed below, with bolded lines showing upcoming maturities. Called Investements '1/2019 Port of Seattle WA Revenue 2,000,000 1112612019 Federal Farm Credit Bank 2,000,000 121112019 Douglas Cnty Sch Dist BAB (partial call] 380,000 Investment Maturities 1 f30!2019 Federal Home Loan Bank 1.000.000 3.!20!2019 Federal Farm Credit Bank 2.000.000 T1'2019 WA St Biomed Revenue Bond 500.000 7/23'2019 Farmer Mac 1.000.000 8/2/2019 Farmer Mac 2,500,000 101912019 FNMA O% 2,400,000 111112019 Seattle WA GO 380,000 1112112019 Federal Farm Credit Bank 1,000,000 121212019 Auburn Wa BAB 300,000 The cash flow projections from investments and interest earnings are shown below. 12 month Cash Flaw Projection Bond Investments 500,40Q Y Oyu G q1° ' a � > e 13 INFORMATIONAL MEMO Page 4 In addition to the Bond investments, the City has one certificate of deposit investment that was acquired in March of 2019 (24 Mo CD at 2.97%). Additional certificate of deposit activity is listed below: Certificates of deposit Interest Earnings Jan -Jun Bank of Washington $250k CID 1.732.76 Jan -Mar SOLInd Community Bank $3M CID 11.364.50 Mar -Sep SOLInd Community Bank $2M CID 30.131.64 Matured Certificates of Deposit 31412019 Sound Community Bank (3.299.675.56) 6±9/2019 Bank of Washington (260.000.00) RETURN ON INVESTMENTS The current portfolio yield on September 30, 2019 was 2.44%. Over the past 12+ months the returns from the cash accounts held with LGIP and Columbia Bank had been steadily increasing, but with recent Federal Reserve rate cuts those returns have decreased slightly. Government agency bond investments, many of which were purchased in 2017, have an average return of 1.33%. Municipal bonds currently have an average return of 3.21 %. The chart below illustrates the cash flows from bond investment income over the next 12 months. 12 month Cash Flow Projection Bond Interest Earnings 80,000 70,000 60,000 50,000 40,000 30,001) 20,000 10,000 rl O p� t S>� 5 P Q 14 INFORMATIONAL MEMO Page 5 POLICY COMPLIANCE AND LIQUIDITY ANALYSIS The portfolio profile is well within the range of all investment policy parameters. Over the next six -months more than $4 million in bond investments will mature, many of which are intended to meet the cash flow needs of Public Safety Plan construction. See "Policy Compliance & Liquidity Analysis" attachment for additional detail. The portfolio benchmark is the 2-year treasury rate, which is closely tied to the changes in the Federal Reserve Fed Funds Rate. Since mid-2019 the Federal Reserve has cut rates three times, twice in the third quarter. The City has been exceeding this investment benchmark due primarily to maintaining higher amounts of cash in money market and LGIP pool investments. The investment portfolio will continue to be managed to take advantage of investment opportunities as they arise while maintaining adequate liquidity to meet obligations. RECOMMENDATION Presentation is for information only. ATTACHMENTS 2019-Q3 Cash and Investment Report Policy Compliance & Liquidity Analysis 15 16 CITY OF TUKWILA Cash and Investment Details CASH & INVESTMENT REPORT September 30, 2019 (a) (c) (d) Agency / Issuer Rating Investment Purchase Maturity Term Par Book Yeild to Annualized Moodys Type Date Date Yrs Value Balance Maturity Return CASH & CASH EQUIVALENTS US Bank Operating Cash Depository various (b) 9,440,983 9,440,983 1.00% 94,410 (e) Washington State Treasurer LGIP Investment Pool various (b) 23,455,958 23,455,958 2.46% 577,177 (f) Columbia Bank Money Market various (b) 14,922,058 14,922,058 2.61% 389,466 (f) Total Cash & Cash Equivalents 47,818,999 47,818,999 2.22% 1,061,052 INVESTMENTS Certificates of Deposits Sound Community Bank Certificatet of Deposit 3/4/2019 3/4/2021 1.7 2,000,000 2,030,132 2.97% 45,221 (g) TOTAL CERTIFICATES OF DEPOSIT 2,000,000 2,030,132 2.23% 45,221 Agencies FNMA US agency 08/2017 10/9/2019 0.3 2,400,000 2,398,759 0.05% - (h) Federal Farm Credit Bank US agency 12/2016 12/27/2019 0.5 1,000,000 999,629 1.70% 17,000 Federal Home Loan Bank US agency 06/2017 6/29/2020 1.0 1,700,000 1,699,286 1.69% 28,730 Federal Home Loan Bank US agency 08/2017 8/8/2020 1.1 2,300,000 2,296,621 1.65% 37,950 Federal Farm Credit Bank US agency 09/2017 5/9/2022 2.9 2,000,000 1,993,232 2.07% 41,400 TOTAL AGENCIES 9,400,000 9,387,528 1.33% 125,080 Taxable Municipal Bonds Seattle WA GO LTD Aaa LTGO Refunding 06/2017 11/1/2019 0.3 380,000 380,752 4.00% 15,200 Auburn WA GO LTD Build America AA+ LTGO 06/2017 12/1/2019 0.4 300,000 301,140 4.50% 13,485 Port Anacortes WA GO LTD Aa3 LTGO 12/2010 9/1/2020 1.2 340,000 346,824 4.49% 15,256 Douglas County Washington Sch Dist Aaa UTGO 12/2010 12/1/2020 1.4 780,000 795,811 4.80% 37,440 Port Tacoma WA GO LTD Txbl Ref Aa2 LTGO Refunding 09/2017 12/1/2020 1.4 510,000 513,708 2.50% 12,750 Multnomah County OR GO LTD Aaa Revenue Bonds 08/2017 6/1/2021 2.0 500,000 481,175 2.28% - (h) Burien WA GO LTD Bid Am Bnds Aa2 LTGO 12/2017 6/1/2020 ' 1.0 500,000 510,845 5.13% 12,813 TOTAL MUNICIPAL BONDS Total Investments Interest earned from maturned/called investments 3,310,000 3,330,255 3.210% 106,943 14,710,000 14,747,914 1.88 % 277,244 178,407 TOTAL CASH, CASH EQUIVALENTS & INVESTMENTS 62,528,999 62,566,912 2.42% 1,516,704 T- Current Portfolio Yeild (a) On Calleable bonds, term is calculated to final maturity even though call date may occur first; term of liquid investments is one day; on sinking fund bonds, average maturity is used to calculate term. (b) No fixed maturity, funds are available within one day. (c) Yeild to Maturity represents avaerage rate for the year for various investment vehicles. (d) Annualized Return represents actual earnings for the fircal year for bonds. (e) Represents earning credit from US Bank. City eams interest up to the amount of fees. (f) Represents rate in effect for period ending this report. (g) Prior $3M CD matured March 2019; Reinvested $2M March 2019 w/annualized return reflecting 9 months interest earnings. (h) Zero coupon bonds, pays no interest until matured. Current Portfolio Allocation Municipal Bonds, 5% Cash, 15% Agencies, 15%_ _.- CDs, Morn LGIP, 37% 17 in CITY OF TUKWILA Policy Compliance & Liquidity Analysis CASH & INVESTMENT REPORT September 30, 2019 Liquidity Analysis & Maturity Diversification Funds immediately available - US Bank, State LGIP, Money market Fixed Maturity Investments, maturing in: 0-90 days after Report Date 91-180 days after Report Date 181-270 days after Report Date 271-360 days after Report Date Investments maturing in 1 year or less Investments maturing in 1-2 years Investments maturing in 2-3 years Investments maturing in 3-4 years Investments maturing in 5-10 years Investments maturing in more than 1 year and less than 10 years. TOTALS Financial Institution Diversification US Bank Columbia Bank Sound Community Bank Investments in Financial Institutions Investments in US Government and other non -financial institutions Total Investment Mix Depository State Investment Pool Money market Certificate of Deposit US Agency Municipal Bonds Total Weiahted Averaae Maturites: Certificates of deposit Agencies Municipal bonds Total Investments POLICY MAXIMUM Policy Met? As of Report Date Available Available in Portfolio Within 1 Year Available 5 - 10 Years $ 47,818,999 $ 47,818,999 $ 47,818,999 4,080,000 2,200,000 2,640,000 2019 8,920,000 2020 3,790,000 2021 2,000,000 2022 - 2023 1.7I:I11111111 $ 62,528,999 8,920,000 8,920,000 3,790,000 2,000,000 $ 56,738,999 $ 62,528,999 $ - 91% 100% 0% Portfolio POLICY Policy Amount % of Total MAXIMUM Met? $ 9,440,983 15.1 % 50.0% Yes 14,922,058 23.9% 50.0% Yes 2,030,132 3.2% 50.0% Yes 26,393,172 42.2% 36,165,958 57.8% $ 62,559,130 100.0% Portfolio POLICY Policy Amount % of Total MAXIMUM Met? 9,440,983 15.1 % insured by PDPC Yes 23,455,958 37.5% 75.0% Yes 14,922,058 23.9% insured by PDPC Yes 2,030,132 3.2% insured by PDPC Yes 9,400,000 15.0% 75.0% Yes 3,310,000 5.3% no limit specified in policy Yes 62,559,130 100.0% Years Performance Analysis 1.4 Current portfolio yield 2.42% 0.9 0.9 Benchmarks: 1.0 2 year treasury 1.63% 3.5 Local Govt Invst Pool 2.20% Yes Note: Cash and cash equivalents are available within one day and are not factored into the Total Investments weighted average maturity. 19 20