HomeMy WebLinkAboutReg 2022-03-07 Item 7 - Budget - Budget Workshop: Structure of City Funds, Financial Policies and Bond RatingCOUNCIL AGENDA SYNOPSIS
A.41,----- Initials
ITEM No.
44,
Meeting Date
Prepared by
Mayor's review
Council review
l
-,
3/7/22
Vicky
7
290$
ITEM INFORMATION
STAFF SPONSOR: VICKY
ORIGINAL AGENDA DATE: 03/07/22
AGENDA ITEM TITLE Budget Workshop: Structure of City Funds, Financial Policies, Bond Rating
CATEGORY
11
Mfg
Discussion
Date 3/7/22
❑ Motion
Mtg Date
❑ Resolution
Mtg Date
❑ Ordinance
Mtg Date
❑ Bid Award
Mfg Date
❑ Public Hearing
Mtg Date
❑ Other
Mtg Date
SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD Finance ❑ Fire ❑ P&R ❑ Police ❑ PW
SPONSOR'S Finance is leading budget workshops for Council in preparation for the upcoming budget
SUMMARY season.
REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety
❑ LTAC ❑ Arts Comm.
DATE: 1/24/22 COMMITTEE
//
❑
Finance & Governance ❑ Planning & Community Dev.
Parks Comm. ❑ Planning Comm.
CHAIR: QUINN
RECOMMENDATIONS:
SPONsoR/ADMIN. Finance Department
COMMITTEE Unanimous Approval; Forward to Regular Meeting
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
MTG. DATE
ATTACHMENTS
3/7/22
Financial Overview
141
142
CITY OF TUKWILA
FINANCIAL
OVERVIEW
TABLE OF CONTENTS
I. CITY FUNDS Page 5
A. FUND DEFINITIONS (Page 26 of 2021-2022 Budget)
B. FUND TYPES (Page 411 of 2021-2022 Budget)
1. General Fund
2. Special Revenue Funds
3. Debt Service Funds
4. Capital Project Funds
5. Enterprise Funds
6. Internal Service Funds
7. Fiduciary Funds
8. Agency Funds
C. FIGURE 1: FUND TYPES
II. POLICIES Page 11
A. FINANCIAL POLICIES (Resolution 2014, Page 385 of 2021-2022 Budget)
1. Purpose
2. Budgeting
3. Revenues
4. Expenditures
5. Grants
6. Capital Improvement Program
7. Enterprise Funds
8. Debt
9. Reserves
10. Investments
11. Minimum Reporting Requirements
B. DEBT POLICY (Resolution 1840, Page 392 of 2021-2022 Budget)
1 Purpose, Type and Use of Debt
2. Responsibilities
3. Method of Sale of Bonds
4. Refunding Bonds or Notes
5. Structural Elements
6. Credit Objective
7. Use of Professionals & Other Service Providers
8. Post -Issuance Compliance Procedures
144
( 2 )
C. RESERVE POLICY (Resolution 1861, Page 402 of 2021-2022 Budget)
D. PURCHASING POLICY (Resolution 2015)
1 Procurement Policy Table
2. Administration
3. Determining Total Cost
4. Vendor Relations
5. Grants & Federal Funding
6. Controlled Commodities
7. Types of Projects & Contract Approval Levels
8. Threshold Cost Negotiation Requirements
9. Public Works Projects
10. Competitive Bidding Process
11. Service Categories
12. Materials, Supplies & Equipment
13. Exceptions to the Competitive Process
14. Disposal of Surplus Property
15. Additional Considerations
16. References
17. Glossary
III. BOND RATING Page 54
A. RATING OVERVIEW
B. RATING SCALE
C. CRITERIA USED BY RATING AGENCIES
D. DEBT SERVICE SUMMARY
IV. CENTRAL SQUARE ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM Page 59
A. FINANCE ENTERPRISE CODING GUIDE
1 Account String (Key -Object)
2. General Ledger Keys
3. General Ledger Object Codes
4. Job Ledger
B. NEW GENERAL LEDGER STRUCTURE
1. 2021-2022 Council Budget (`old' vs 'new' GL structure)
3
145
V. PRIORITY BASED BUDGETING Page 83
A. WHAT IS PRIORITY BASED BUDGETING?
1. Priority Based Budgeting Process
2. Chart — General Fund Program Allocation by Tier
3. Chart — Program Allocations by Department
B. PERFORMANCE MEASURES
1. Why Measure Performance?
C. ALIGNING PERFORMANCE MEASURES TO STRATEGIC GOALS
1. City of Tukwila Strategic Goals & Objectives
2. Goal 1 — Community of Inviting Neighborhoods & Vibrant Business Districts
3. Goal 2 — Solid Foundation for all Tukwila Residents
4. Goal 3 — Diverse & Regionally Competitive Economy
5. Goal 4 — High -Performing & Effective Organization
6. Goal 5 — Positive Community Identity & Image
4
146
CITY FUNDS
(5)
147
FUND DEFINITIONS
The City of Tukwila's accounting and budget structure is based upon governmental fund accounting to
ensure legal compliance and financial management for various restricted revenues and program
expenditures. Fund accounting segregates certain functions and activities into separate self -balancing
funds created and maintained for specific purposes (as described below). Resources from one fund used
to offset expenditures in a different fund are budgeted as either a `transfer to' or `transfer from'.
The City of Tukwila budget is organized in a hierarchy of levels, each of which is defined below:
Fund
Department
Program
Object
148
A fund is an accounting entity used to record the revenues and expenditures of a
governmental unit which is designated for the purpose of carrying out specific activities or
attaining certain objectives. For example Fund 104, the Arterial Street Fund, is designated
for the purpose of maintaining the arterial streets within the City.
A department designates a major function of City operations, e.g., Public Works or Parks
and Recreation.
A specific distinguishable line of work performed by the department, or departments, for
the purpose of accomplishing a function for which government is responsible. For
example, "Traffic Control" is included within the Street Funds.
The appropriation unit (object of expenditure or expense) is the level of detail used in the
budget to sort and summarize objects of expenditure, or expense, according to the type
of goods or services being purchased, e.g., salaries, supplies.
(6)
FUND TYPES
General Fund: used to account for and report all financial resources not accounted for and
reported in another fund.
The General Fund supports the general operations of the City government. These include administration,
the legislative function, legal services, public safety, planning and community development, enforcement
of local codes, parks, recreation, and cultural activities. Taxes are the principal source of revenue for the
General Fund: property, sales, utility, and gambling taxes. Other important resources are shared revenue
from other governments, licenses and permits, charges for services, and fines and forfeitures.
The Contingency, or Reserve Fund, is an accumulation of fund balance that is greater than 10% of
previous year General Fund revenue, exclusive of significant non-operating revenue. Amounts held in
this fund can be used for more restrictive, emergency type purposes. This fund is a sub -fund of the
general fund.
Special Revenue Funds: used to account for and report the proceeds of specific revenue
sources that are restricted or committed to expenditure for a specific purpose other than debt
service or capital projects.
These funds receive revenue from a variety of sources, including Federal and State grants, taxes, and
service fees. These revenues are dedicated to carrying out the purposes of the individual special revenue
fund.
Special Revenue
Fund #
Name
101
109
Lodging Tax
Drug Seizure
Debt Service Funds: used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for principal and interest for governmental debt issues.
Debt limits are based on percentages of assessed valuation, with voted debt requiring a 60% majority of
the city electorate.
Debt Service
Fund #
Name
2XX Various Debt Service
7
149
Capital Project Funds: used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays including the acquisition or construction
of capital facilities or other capital assets.
Revenues for capital funds consist of federal and state grants, contributions from operating funds and
bond proceeds. These revenues are usually dedicated to capital purposes and are not available to
support operating costs. Capital projects are adopted on a multi-year basis.
Capital Project
Fund #
Name
103 Residential Street
104 Bridges and Arterial Streets
301 Land Acquisition, Rec. and Prk Dev.
302 Urban Renewal
303 General Government Improvement
304 Fire Improvement
305 Public Safety Plan
306 City Facilities
Enterprise Funds: used to report any activity for which a fee is charged to external users for
goods or services. Enterprise funds are required for any activity whose principal revenue
sources meet any of the following criteria:
• Debt backed solely by the pledge of the net revenues from fees and charges
• Legal requirement to recover cost
• Policy decision to recover cost
Enterprise
Fund #
Name
401 Water
402 Sewer
411 Golf Course
412 Surface Water
Internal Service Funds: used to report any activity that provides goods or services to other
funds or departments of the government on a cost -reimbursement basis.
Internal Service
Fund #
Name
501 Equipment Rental and Replacement
502 Self Insured Healthcare Plan
503 LEOFF I Retiree Self -Insured Healthcare Plan
150
8
1
Fiduciary Funds: used to account for assets held by a government in a trustee capacity or as
an agent for individuals.
Fiduciary
Fund #
Name
611 Firemen's Pension
Agency Funds: used to report resources held by the government in a purely custodial capacity
(assets and liabilities).
Fiduciary
Fund #
Name
640 Agency Fund
9
151
Figure 1: Fund Types
[Reporting
Entity
1
Governmental Proprietary
Category Category
General Fund
Special Revenue
Funds
Capital Projects
Fund
Debt Service
Funds
Permanent
Funds
152
1
Enterprise Internal Service
Funds Funds
-� 10 I
Fiduciary
Category
Private Purpose
Trust Funds
investment Trust
Funds
Pension Trust
Funds
Agency Funds
POLICIES
11
153
FINANCIAL POLICIES
The City's Financial Policies are intended to serve as a Council -approved set of values and expectations
for Council Members, City staff, citizens and other interested parties who may do business with the City.
The use of the term "City" refers to all City officials and staff who are responsible for the activities to carry
out these policies. The policies describe expectations for financial planning, budgeting, accounting,
reporting and other management practices. They have been prepared to assure prudent financial
management and responsible stewardship of the City's financial and physical resources. The policies
are reviewed on a biennial basis and updated as needed. The latest revision of the financial policies was
adopted December 2020 via Resolution 2014.
City of Tukwila
Washington
Resolution No. 2-019
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING FINANCIAL POLICIES,
AND REPEALING RESOLUTION NOS. 1919 AND 1950.
WHEREAS, the City Council is committed to the highest standard of financial
management; a nd
WHEREAS, financial policies adopted by the legislative body area best practice to
provide written guidance for how local govern ment officials and staff should approach
fiscal issues and core financial areas; and
WHEREAS, financial polices outline a clear vision of how the City of Tukwila will
manage Its financial resources to provide the best valueto ttie community; and
WHEREAS. periodically updating and revising financial policies are important steps
toward ensuring consistent and rational financial management; and
WHEREAS, financial policies have traditionally existed in many different document
and the City Council desires to minimize confusion and eliminate redundancies cr
conflicts by consolidating financial policy directicn to the extent feasible;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHrNOTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Th e Financial Policies attached hereto as ExhibitA are adopted.
Section 2. The Financial Policies shall be reviewed on at least a biennial basis and
updated as necessary,
Section 3. Repealer_ Resolution Nos/1919 and 1950 are hereby repealed,
154
( 12 )
PASSED BY THE CITY COUNCIL OF THE CIT OF TUKWILA, WASHINGTON, at
a Reg ularl.leeling thereof this 1- day of pe .,,+ee-t 2020.
ATTEST/AUTHENTICATED:
Christy' YFraherty, MMC, city Clerk
APPROVED AS TO FORM BY.
•
Orrice of the City Attorney
Attachment: ExhilaltA - Financial Policies
De°Sean Quinn, Council President
Filed with the City Clerk: !2---2
Passed by the City Council: 112- - W
Resolution Numbar' 2tl71+
( 13 )
155
Financial Policies
Section 1. Purpose
a. The City of Tukwila is accountable to the public and shall maintain the fiscal
integrity of its operating, debt service, and capital budgets while providing an
appropriate level of publIcservices within the City's fiscal responsibility,
b. The City's Financial Policies are intended to provide guidelines for the financial
planning and internal financial ma n agernent of the City.
Section 2. (Budgeting
Cross rrfarar as: TMC € hapter 3.30
a. The City of Tukwila shell prepare and adopt a biennial budget in accordance with
RCW Chapter 35A.34, and Tukwila Municipal Code (TMC) Chapter 3.30. Fiscal
years loin January 1 and end December 31.
b. The budget shelf be prepared with a priority -based approach that enables
resources to be allocated to the programs and services that provide the greatest
value to the community_
c. The budget must be developed In accordance with the policies and priorities set
forth In Tong -term policy docu menu including the Equity Policy, Strategic Plan,
Comprehensive Plan , CityCounoil andcomrnunity+priorities,andfederaland state
laws.
d. Within each budget cycle, the budget should be structurally balanced, which
means that ongoing expenditures shall be provided for by anticipated ongoing
revenue and one-time revenue should only be used for one-time expenditures
unless explicitly auth orfzed by the City Council..
e.. The City shall maintain a six-year Capital Improvement Program and update it
with each budget cycle to en sure that all costs are addressed.
f. As part of each biennial budget process, the City shall prepare six-year
expenditure and revenue forecasts for the principal operating and capital funds.
Revenues will be estimated on a conservative basis.
Tire City Cou ncif may in formally approve mid -year budgetamen dments by motion
prior to the submission of a comprehensive formal budget amendment at the end
of the fiscal year.
g
Section 3, Revenues
Gass referi5rx5is_ ThfC Tina 3
a. The City will maintain a diversified and stable revenue system to shelter it from
short-term fluctuations,
b. The City shall develop and maintain a comprehensive schedule of fees arid
charges. which should be reviewed biennially.
156
( 14 )
Secton 3. Revenues (corlfrnrued)
c. The City shall develop and maintain a Revenue Guide that describes major
revenue sou rtes available to the City of Tukwila.
d. Revenue sources should bereviewed in off -budget years to accauntfor inflation,
to stay in line with market, or to ensure cost recovery at a prescribed level
depending on the seven ue source
Section 4. Expenditures
CMS'S referwige6
tgurichasen9 Ply peso!utd in TSD)
- Card' Potrcy 5-atutnon No. 77500
- Expense Reimbumement PC6Gy fl soM No }874)
a. The City shall maintain expenditure categories according ID state statute and
administrative regulation known as the State Auditor's Budgeting, Accounting,
and Reporting System (BARS).
b_ Operating expenditures within funds must be supported by the operating
revenues generated by that fund.
c. P u rcha sing will be con du cted with appropriate internal controls, observe fair and
ethical business practices. and use wise and prudent judgement in the
expenditu re of pu blic fu rids.
Section 5. Grants
Cr,Ss rer8FORGas: Grant Poky/Procedure rn progress
a. The City shall, whenever practical and advantageous, pu rsue grant funding. All
potential grants shall be examined carefully for matching requirements, and to
determine whether programs must be continued with local resources after grant
funds are exhausted,
b. Staff shall obtain approval from the appropriate City Council Committee before
applying for grants requiring a local match, and staff shall obtain City Council
approval prior to accepting grant agreements in amounts above the Mayor's
signing authority,
Section 6. Capital Improvement Program (CIP)
a. Transportation improvements will be coordinated with related Improvements such
as utility, landscaping. sidewalks, etc,
b. Whenever feasible, capital improvernents shall be coordinated with related
improvernents of adjacent Jurisdictions,
e. Capital Improvement Program projects shall, wheneverpossible,take advantage
of grants, licensor other financing external to the City. If the proposed grants or
mitigation are either notfundedor are reduced, the City Council IAA] reevaluate
the respective project on the basis of Its value and priority level placement in the
Capital Improvement Program.
( 15 )
157
Section 6. Capital Improvement Program! (CIF') (continued)
d. Residential streets with safety issues, h iglu traffic vol umes, high pedestrian activity
:end poor roadway con diionswilt be considered the highest priority projects,
e. Residential street designs will follow basic designs for arterials, collecbrs, and
local access streets. Designs to accommodate indivlr uat properties shall be
avoided,
f. design of corm &cling streets is strongly encouraged,
g, For City -scheduled projects located on residential streets, the City will require the
undergroundingof new electrical and communication facilities pursuanttc TMC
Chapter 11.26.
h, Street and mad improvement projects on slopes will include roadside plantings
wherever- feasible to help mitigate the land used for roadway and side ve?k
improvements_
Donation of the property needed for rights-of-way and easements shell be
pursued.
Latecomer agreements, where appropriate, shall be considered an acceptable
means of funding capital projects, improvements and replacements, in whale or
in part.
k. Right-of-way agreements for nabre and electrical services should be utilized to
discou rage excessive wi ri ng rough cut the City.
I. Current arterial street improvements determined lin the six-yearCIF' may be
funded through a Local Improvement District (LID) or financing external to the
City. The City may participate using operating revenues, grants or bonds based
on Health and safety needs or public benefit. The City may participate in the
funding by financing the preliminary engineering design and professional servis
+cost associated with planning and creating the LID.
m. A majority of property owners on a street may petition the City to sat up an LID to
pay for residential street improvement projects, sidewalks and undergrounding of
utilities. The City will evaluate the possibility of paying for the design. preliminary
engineering, construction engineering, and LID formulation. The residents will
pay for undergroundir g utilities in doe street, undergrounding from the street to
their residence, the actual construction costs, and any improvements on private
property such as rockeries, paved driveways, or roadside plantings,
ri. Non -transportation capital projects and improvements should be funded by
operating revenues, grants or bonds as determined in the six-year Financial
Flan ning rVlodel.
o. Pursu ant to TMC Chapters 3.56 and 3.60, the first 1'4 want Real Estate Transfer
Tax (REST) shall be dedicated to park and open space land acquisition, and the
second '114 cent shall be used for arterial streets, along with the parking tax,
u n lessthe City Council enacts otherpnorities con sistentwith state law distribulion
of REST funds.
J.
158
( 16 )
Section 6. Capital Improvement Program (IP) (continued)
P.
Street and road improvement projects shell be evaluated for the inclusio( of
features that support the City's 'Walk and Rill Plan" in order to encourage
walking. bicycling, and use of public transit.
Policies will be reviewed annually and in concert with the adoption of growth
management policies to ensure continuity.
r. Transporlatiorr impact fees shall be collected so that "growth may pay for growth"
and growth -caused improvements may be Constructed.
Section 7. Enterprise Funds
a U lity fund experLdtitures shall he fully supported by their own rates, fees, and
cF� arg:es and not subsidlized by the General Fund.
b. Utility rates should be stru=red to ensure adequate infrastructure development
and replacement.
c. Each Enterprise Fund shall be reviewed bi-annually to ensure a rale structure
adequate to met its operations, maintenance, and lung-terrrl capital
requirements.
d. Enterprises Furid rate increases shall be small, applied frequently, and staggered
to avoid an overly burdensome increase and undue impact In anygiven year.
e. Enterprise Fund rete increases of external agencies will be passed th rough to the
customer.
f. Infrastructure improvements such as water reuseshouldconsiderconsenrataori of
resources such as water and electricity.
Section 8. Debt
Doss references: Oafri Fahey s° kirion ML 1640)
a Appropriate management of debt is an important factor In rrreasuringthe City's
financial performance and condition.
Section 9. Reserves
a. Prudentfinancial rnanagernentdletates that some portion of fun cisav'ailableto the
City be reserved for future use,
b. At the close of each fiscatyear, the General Fund unassigned balance shall equal
or exceed 1 5cY0, and the Contingency Fund reserve balance shall equ at Or exceed
1O of the previous year General Fund revenue, exclusive of significant non-
operating, neon -recurring revenues such as real estate sales or transfers in from
other funds-
( 17 )
159
Section 9. Reserves (corofrrr+ied)
c. Attheclose of each fiscal year, the unrestricted balances of the Enterprise Funds
shall equal or exceed 20% ofthe previous year revenue, exclusive of the effects
of GASB Statement 68, as well as significant non-operating, non -recur ing
revenuessuch as real estate sales,transfersin from otherfundsordebt proceeds,
d. LJse or draw down of minimum balances shall occur only upon recommendation
of City Administmlion and approval by City Council ItIf urgh a resolution. Should
use or draw down occur, the City Administration shall establish a plan, no later
than Ole end of the hscal year following the year of decline, to restore the fund
balance to the prescribed minimum level. The plan shall bye presented to and
approved by the City Council.
e. A One-time Revenue Reserve shall be established and maintained in the
Contingency Fund. The One-time Revenue Reserve shall be credited annually
with 10 of the prior year one-time revenues to the extent General Fund surplus
for the year is sufficientto cover the reserve funding. Use of the reserve shall
Occ4,r only upon recommendation by City Administration and approval by City
Council rscl utl on.
E The City shall maintain a reserve in each of its self-insured health care funds in
an amount equal to 15 limes, or 150%, of the actuarially determined IBNR
(incurred but not reported) balance. Use of the rewrite shall occur only upon
recommendation by City Administration and approval by City Council resolution.
Section 10. Investments
(mss oreram; TMC kasdig ion 1&28
a. The City will drive to maximize the return on its investments with the primary
obj&ctive of preserving capital in accordance willh city policy and prudent
investment practices.
Stadion 11, Minimum Reporting Requirements
a_ The Finance Di rectorshall providea financial status update at least quarterly,
b_ City Administration shall provide the City Cou neiI With financial reports that reflect
actual performance in various expenditures and reven u es.
c. City Administration shall provide the City Council with a quarterly report of all
newly -executed contracts, including the amount, responsible department, scope
of work, and expiration date.
d. Once the a annual audit is complete, City Administration shall provide a report to
the City Council showing compliance with the Financial Reserve Policy.
160
( 18 )
DEBT POLICY
City of Tukwila
Washington
Resolution No.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA. WASHINGTON, ADOPTING A DEBT POLICY
AND PROVIDING FOR APPROPRIATE MANAGEMENT OF
DEBT ISSUED BY THE CITY OF TUKWCLA.
WHEREAS, a debt policy and appropriate management of debt issued by the City
is an important factor in measuring the City's financial performance and condition; and
WHEREAS, proper use and management of borrowing can yield significant
advantages; and
WHEREAS, thy* use of debt is a mechanism
improvements to both present and future citizens: and
to equalize costs of needed
WHEREAS, it isthe responsibility of the City Council of the City of Tukwila to
provide policy direction through the passage of motions and ordinances, adoption cif
resolutions, and final approval of the budget: and
WHEREAS, a debt policy establishes the purer, type, and use of debt:
responsibilities of various City officials; method of sale of bonds„ refundings ((bonds or
notesi structural elements; credit objective; and the use of professional and other
service providers;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWLL.A,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. The debt policy dated August 2014, attached hereto as "Exhibit A,' is
hereby adopted by this reference as if set forth in full.
Section 2. The debt policy shall be reviewed on a regular basis and updated as
necessary.
—( 19 )
161
162
PASSED W( TI -1E crnr GC N1 OF TI 1E CI OF TU DILA. WASHINGTON, at
a Regular kneeling thereof this �,k day of , 2(114
ATTEsTri 4 THEmi TEI
Christy O'FI.ahir .. 1111114G. City Clerk Da' =Sean'Quinn, Council Fresideni.
APPROVED AS TO FO1M 8Y:
Filed wit the Utile Clerk: g..: I
Peby to City Council
?' sci k ululii r i Num r': � }
I4 chhaI Turpin, City Adore
20 r
CITY OF TUKWILA DEBT POLICY
A debt policy and appropriate management of debt issued by the City of Tukwila (the "City") is an
important factor in measuring its financial performance and condition. Proper use and management
of borrowing can yield significant advantages. From a policy perspective, the City uses debt as a
mechanism to equalize the costs of needed improvements to both present and future citizens.
SECTION 1. PURPOSE, TYPE AND USE OF DEBT
In the issuance and management of debt, the City shall comply with the Washington State
constitution and with all other applicable legal requirements imposed by federal, state and local
laws, rules and regulations. Approval from the City Council (the "Council") is required prior to the
issuance of all debt. Long-term debt will only be used for improvements that cannot be financed
from current revenues or to fulfill the purposes set forth in the first paragraph of this Debt Policy
(the "Policy").
Long-term debt will only be issued after reviewing the impact on the Six Year Financial Planning
Model and its policy guidelines. When both tax exempt and taxable debt is under consideration,
priority will be given to issuing the tax exempt debt, unless otherwise justified.
Limited Tax General Obligation (LTGO) Bonds. The City is authorized to sell LTGO bonds
under RCW 39.36.020, subject to the approval of the Council. LTGO bonds will be issued only
if: (1) a project requires funding not available from alternative sources; (2) the project has a useful
life longer than five years, and the Council determines it is appropriate to spread the cost over that
useful life, to achieve intergenerational equity, so those benefiting will also be the ones paying;
(3) matching money is available which may be lost if not applied for in a timely manner; or
(4) emergency conditions exist as determined by the Council. LTGO (non -voted) debt of the
City shall not exceed an aggregate total of 1.5 percent of the City's assessed value of taxable
property within the City.
Unlimited Tax General Obligation (UTGO) Bonds. The City is authorized to sell UTGO
bonds under RCW 39.36.020, subject to the approval of the Council, and subject to voter
approval. UTGO debt will be used for capital purposes when the use of an excess tax levy is
necessary for debt service payments. No combination of UTGO (voter approved) debt and LTGO
debt of the City shall exceed an aggregate total of: (a) 2.5 percent of the City's assessed value
of the taxable property within the City for general purposes; (b) 2.5 percent of the City's assessed
value of the taxable property within the City for parks, open spaces and capital facilities
associated with economic development; and (c) 2.5 percent of the City's assessed value of the
taxable property within the City for utility purposes.
Revenue Bonds. The City is authorized to sell revenue bonds under RCW 35.41.030, subject
to the approval of the Council. Revenue bonds will be issued to finance the acquisition,
construction or improvements to facilities of enterprise systems operated by the City, in
accordance with a system and plan of improvements. The enterprise system must be legally
authorized for operation by the City. There are no legal limits to the amount of revenue bonds
the City can issue, but the City will not incur revenue obligations without first ensuring the
( 21 )
163
ability of an enterprise system to meet all pledges and covenants customarily required by
investors in such obligations during the term of the obligation.
Local Improvement District Bonds. The City is authorized to sell local improvement district
(special assessment) bonds ("LID bonds") under RCW 35.45.010, subject to the approval of the
Council. LID bonds are issued to finance projects that will provide special benefit to certain
property owners. The specially benefiting property owners are levied an assessment, based
upon a formula developed to fairly reflect the benefit received by each property owner in the
local improvement district. After consideration and review, the City may form local improvement
districts upon petition of benefiting property owner(s), unless the Council determines to establish
such districts by resolution, pursuant to statutory authority. LIDs for utility improvements may be
authorized as ULIDs, which may be financed through issuance of Revenue Bonds.
Lease Purchase Financing. Lease purchase financing may be used when the cost of borrowing
or other factors make it in the City's best interest.
Short -Term Debt. The City is authorized to incur short-term debt under chapter 39.50 RCW,
subject to the approval of the Council. Short-term debt may be issued to meet: (1) the immediate
financing needs of a project for which long-term financing has been identified and is likely or
secured but not yet received; or (2) cash flow needs within authorized budgets and anticipated
receipts for the budget year.
The Finance Director is authorized to make loans from one City fund to another City fund for periods
not exceeding twelve months. The Finance Director or designee is required to assure that the loaning
fund will have adequate cash balances to continue to meet current expenses after the loan is made
and until repayment from the receiving fund. All interfund short-term borrowing will bear interest
based upon prevailing Local Government Investment Pool rates.
SECTION 2. RESPONSIBILITIES
The primary responsibility for debt management rests with the City's Finance Director.
The Finance Director shall (or shall cause the following to occur):
• Provide for the issuance of debt at the lowest cost and risk;
• Determine the available debt capacity;
• Provide for the issuance of debt at appropriate intervals and in reasonable amounts as
required to fund approved projects;
• Recommend to the Council the manner of sale of debt;
• Monitor opportunities to refund debt and recommend such refunding as appropriate;
• Comply with all Internal Revenue Service (IRS), Securities and Exchange Commission
(SEC) and Municipal Securities Rulemaking Board (MSRB) rules and regulations
governing the issuance of debt pursuant to the City's Post Issuance Compliance Policy;
• Provide information for and participate in the preparation and review of bond offering or
disclosure documents;
• Comply with all terms, conditions and disclosures required by Ordinances governing the
debt issued;
• Submit to the Council all recommendations to issue debt;
164
( 22 )
• Distribute to appropriate repositories, such as the EMMA repository managed by the
Municipal Securities Rulemaking Board, information regarding financial condition and
affairs at such times and in the form required by contract, regulation and general
practice, including Rule 15c2-12 regarding continuing disclosure;
• Provide for the distribution of pertinent information to rating agencies;
• Coordinate and lead presentations to rating agencies, when appropriate;
• Maintain a database with all outstanding debt;
• Apply and promote prudent fiscal practices;
• Select a qualified financial advisor with experience in municipal finance in Washington, and
registered with the SEC and MSRB as a "municipal advisor," and
• Account for and pay all bonded indebtedness for the City , by specifically providing for the
timely payment of principal of and interest on all debt; and ensuring that the fiscal agent
receives funds for payment of debt service on or before the payment date.
The Council shall:
• Approve the Debt Policy;
• Approve indebtedness;
• Approve budgets sufficient to provide for the timely payment of principal and interest on
debt;
• Determine the most appropriate financing plan for proposed debt, based on
recommendation from the Finance Director, upon advice of the City's financial advisor; and
• By Ordinance, delegate broad or limited authority to the Finance Director relative to
execution of a financing plan approved by the Council.
SECTION 3: METHOD OF SALE OF BONDS
Competitive Sale. The Finance Director may, upon the advice of the City's financial advisor,
submit to the Council a recommendation to sell debt on a competitive bid basis. City debt
issued on a competitive bid basis will be sold to the bidder proposing the lowest true interest
cost to the City. Such bid may take the form of electronically transmitted offers to purchase the
bonds.
Negotiated Sale. The Finance Director may, upon the advice of the City's financial advisor,
submit to the Council a recommendation to sell debt on a negotiated basis. If debt is sold on a
negotiated basis, the negotiations of terms and conditions shall include, but not be limited to,
prices, interest rates, redemption provisions and underwriting compensation. The Finance Director,
with the assistance of its financial advisor, shall evaluate the terms offered by the underwriter
including comparison of terms with prevailing terms and conditions in the marketplace for
comparable issues. If more than one underwriter is included in the negotiated sale of debt, the
Finance Director shall establish appropriate levels of liability, participation and priority of orders
and, with the assistance of its financial advisor, oversee the bond allocation process.
Private or Direct Placement. When deemed appropriate to minimize the direct or indirect
costs and risks of a debt issue, the Finance Director will, upon the advice of the City's financial
advisor, submit to the Council a request to incur debt issue through a private placement or direct
bank placement.
( 23 3
165
SECTION 4. REFUNDING BONDS OR NOTES
Refundings will be conducted in accordance with chapter 39.53 RCW. Unless otherwise justified,
the City will refinance debt to either achieve debt service savings as market opportunities arise,
or to eliminate restrictive covenants.
Unless otherwise justified, an "advance refunding" transaction will require a present value savings
of five percent of the principal amount of the debt being refunded. In addition to the savings, any
determination to refund debt should take into consideration all costs and negative arbitrage in
the refunding escrow.
A "current refunding" transaction will require present value savings in an amount or percentage
to be determined by the Finance Director based upon the advice of the City's financial advisor.
SECTION 5. STRUCTURAL ELEMENTS
Maturity Term. The City shall issue debt with an average life less than or equal to the
average life of the assets being financed. Unless otherwise stated in law, the final maturity of the
debt shall be no longer than 40 years (RCW 39.46.110).
Debt Service Structure. Unless otherwise justified and deemed necessary, debt service
should be structured on a level annual basis. Refunding bonds should be structured to produce
debt service savings as determined by the Finance Director, based upon the advice of the City's
financial advisor, to be in the best interest of the City. Unless specifically justified and deemed
necessary, debt shall not have capitalized interest. If appropriate, debt service reserve funds
may be used for revenue bonds.
Maturity Structure. The City's long-term debt may include serial and term bonds. Unless
otherwise justified, term bonds should be sold with mandatory sinking fund requirements.
Price Structure. The City's long-term debt may include par, discount and premium bonds.
Discount and premium bonds must be demonstrated to be advantageous relative to par bond
structures, given applicable market conditions and the City's financing goals.
Interest Payments. Unless otherwise justified and deemed necessary, long-term debt will bear
interest payable semiannually.
Redemption Features. For each transaction, the City shall evaluate the costs and benefits
of call provisions.
Capitalization. Debt service reserves may be capitalized for enterprise activities only. Costs
of issuance may be capitalized for all debt. Interest costs may be capitalized upon the advice of
the City's financial advisor for any type of debt.
Bond Insurance. The City may evaluate the costs and benefits of bond insurance or other
credit enhancements. Any credit enhancement purchased by the City shall be competitively
procured unless otherwise justified.
166
( 24 )
Tax -exemption. Unless otherwise justified and deemed necessary, the City shall issue its debt
on a tax-exempt basis. Taxable debt may be justified based on a need for flexibility in use of
proceeds, or when expected to reduce burdens relative to IRS rules.
SECTION 6. CREDIT OBJECTIVE
The City shall seek to maintain and improve its bond rating or ratings, as applicable.
SECTION 7. USE OF PROFESSIONALS AND OTHER SERVICE PROVIDERS
Bond Counsel. All debt issued by the City will include a written opinion by bond counsel
affirming that the City is authorized to issue the debt, and that all statutory requirements have
been met. The bond counsel opinion and other documents relating to the issuance of debt
will be prepared by nationally recognized bond counsel with extensive experience in public
finance and tax issues. Bond counsel will be appointed by the Finance Director consistent
with the City's general authority to contract. .
Financial Advisor. The Finance Director will appoint a financial advisor for each debt issue, or
for a specified term, consistent with the City's general authority to contract. The financial advisor
shall be nationally recognized, have comprehensive municipal debt experience, including debt
structuring and pricing of municipal securities, be registered as a "municipal advisor" with the
MSRB and SEC, and have knowledge of State laws relating to City finances. The City financial
advisor is to be available for general purposes, and will assist the City with all financing issues.
In no case shall the financial advisor serve as underwriter for the City's debt issues.
Underwriter. The Finance Director in consultation with the City's financial advisor will select
an underwriter for any negotiated sale of bonds. The selection of an underwriter may be for
an individual bond issue, series of financings or a specified time period, as determined by the
Finance Director. Depending upon the nature and amount of each financing, the Finance
Director is authorized, in consultation with the City's financial advisor, to appoint more than
one underwriter for each financing and to designate one underwriting firm as the managing
underwriter.
Other Service Providers. Professional services such as verification agent, escrow agent or
rebate analyst shall be appointed by the Finance Director in consultation with the City's
financial advisor and/or bond counsel.
Other City Policies and Procedures. The City shall comply with its Post -Issuance Tax
Compliance Policy, and shall provide the appropriate department heads and staff with
educational opportunities to ensure they are aware of requirements that may pertain to bond
financed facilities and assets relating to their duties.
SECTION 8. POST -ISSUANCE COMPLIANCE PROCEDURES
Continuing Disclosure Obligations for All Bonds
( 25 )
167
Purpose. At the time of issuance of any Bonds, regardless of tax status, the City is required
to enter into a Continuing Disclosure Undertaking ("Undertaking") in order to allow the
underwriter of the Bonds to comply with Securities and Exchange ("SEC") Rule 15(c)2-12. The
Undertaking is a contract between the City and the underwriter in which the City agrees to
provide certain information to an "information repository" operated by the Municipal Securities
Rulemaking Board ("MSRB") to ensure investors have access to annual updates and related
events that occur during the year.
Responsibility for Undertaking. The Finance Director is responsible for negotiating the
terms of and complying with each of the City's Undertakings. The Finance Director will
negotiate the terms of the Undertaking at the time of each bond issuance, with a goal of
meeting the requirements of Rule 15(c)2-12, without undue burden on the City. The Finance
Director will strive to ensure that each Undertaking is similar to prior Undertakings to the extent
possible, to simplify future compliance.
Compliance with Undertaking. The Finance Director will have responsibility for ensuring
compliance with each Undertaking, which activities may be delegated to staff within the finance
department. This will require certain annual filings, by a set due date, as well as periodic filings
as certain specified events arise. Filings are to be made through the Electronic Municipal
Market Access ("EMMA") portal, managed by the MSRB. The Finance Director is responsible
for knowing the terms of the City's Undertakings, and ensuring appropriate staff within the
finance department and other departments of the City are aware of the events that may require
a filing.
Certification of Compliance. At the time of each subsequent bond issue, the Finance
Director is responsible for reviewing all prior compliance, and providing a statement as to that
prior compliance, as required by Rule 15(c)2-12. Each official statement will include a
statement that describes compliance (or non-compliance) with each prior undertaking, which
statement will be certified by the Finance Director.
Compliance Relating to Tax Exempt Bonds
Purpose. The purpose of these post -issuance compliance procedures ("Compliance
Procedures") for tax-exempt bonds and other obligations issued by the City for which federal
tax exemption is provided by the Internal Revenue Code of 1986, as amended (the "Code"), is
to facilitate compliance by the City with the applicable requirements of the Code that must be
satisfied after the issue date of the bonds to maintain the tax exemption for the bonds after the
issue date.
Responsibility for Monitoring Post -Issuance Tax Compliance. The City Council of the City
has the overall, final responsibility for monitoring whether the City is in compliance with post -
issuance federal tax requirements for the City's tax-exempt bonds. However, the City Council
has delegated the primary operating responsibility to monitor the City's compliance with post -
issuance federal tax requirements for the City's bonds to the Finance Director and has
authorized and directed the Finance Director of the City to adopt and implement on behalf of
the City these Compliance Procedures.
Arbitrage Yield Restriction and Rebate Requirements. The Finance Director will maintain
or cause to be maintained records of:
26
168
(a) purchases and sales of investments made with bond proceeds (including amounts treated
as "gross proceeds" of bonds under section 148 of the Code) and receipts of earnings on
those investments;
(b) expenditures made with bond proceeds (including investment earnings on bond proceeds)
in a timely and diligent manner for the governmental purposes of the bonds, such as for
the costs of purchasing, constructing and/or renovating property and facilities;
(c) information showing, where applicable for a particular calendar year, that the City was
eligible to be treated as a "small City" in respect of bonds issued in that calendar year
because the City did not reasonably expect to issue more than $5,000,000 of tax-exempt
bonds in that calendar year;
(d) calculations that will be sufficient to demonstrate to the Internal Revenue Service ("IRS")
upon an audit of a bond issue that, where applicable, the City has complied with an
available spending exception to the arbitrage rebate requirement in respect of that bond
issue;
(e) calculations that will be sufficient to demonstrate to the IRS upon an audit of a bond issue
for which no exception to the arbitrage rebate requirement was applicable, that the rebate
amount, if any, that was payable to the United States of America in respect of investments
made with gross proceeds of that bond issue was calculated and timely paid with Form
8038-T timely filed with the IRS; and
(f) information and records showing that investments held in yield -restricted advance refunding
or defeasance escrows for bonds, and investments made with unspent bond proceeds after
the expiration of the applicable temporary period, were not invested in higher -yielding
investments.
Restrictions on Private Business Use and Private Loans. The Finance Director will adopt
procedures calculated to educate and inform the principal operating officials of those
departments, including utility departments, if any, of the City (the "users") for which land,
buildings, facilities and equipment ("property") are financed with proceeds of tax-exempt bonds
about the restrictions on private business use that apply to that property after the bonds have
been issued, and of the restriction on the use of proceeds of tax-exempt bonds to make or
finance any loan to any person other than a state or local government unit. In particular,
following the issuance of bonds for the financing of property, the Finance Director shall provide
to the users of the property a copy of these Compliance Procedures and other appropriate
written guidance advising that:
(a) "private business use" means use by any person other than a state or local government
unit, including business corporations, partnerships, limited liability companies,
associations, nonprofit corporations, natural persons engaged in trade or business activity,
and the United States of America and any federal agency, as a result of ownership of the
property or use of the property under a lease, management or service contract (except for
certain "qualified" management or service contracts), output contract for the purchase of
electricity or water, privately sponsored research contract (except for certain "qualified"
research contracts), "naming rights" contract, "public-private partnership" arrangement, or
any similar use arrangement that provides special legal entitlements for the use of the bond -
financed property;
(b) under section 141 of the Code, no more than 10% of the proceeds of any tax-exempt bond
issue (including the property financed with the bonds) may be used for private business
27
169
170
use, of which no more than 5% of the proceeds of the tax-exempt bond issue (including the
property financed with the bonds) may be used for any "unrelated" private business use—
that is, generally, a private business use that is not functionally related to the governmental
purposes of the bonds; and no more than the lesser of $5,000,000 or 5% of the proceeds
of a tax-exempt bond issue may be used to make or finance a loan to any person other
than a state or local government unit;
(c) before entering into any special use arrangement with a nongovernmental person that
involves the use of bond -financed property, the user must consult with the Finance Director,
provide the Finance Director with a description of the proposed nongovernmental use
arrangement, and determine whether that use arrangement, if put into effect, will be
consistent with the restrictions on private business use of the bond -financed property;
(d) the Finance Director is to communicate with the City's bond counsel and/or financial
advisor relative to any proposed change in use or special use arrangement that may impact
the status of the bonds, before entering into such agreement.
RESERVE POLICY
City of Tukwila
Washington
Pew! on No_ I+ 417bI
A RESOLUTION OF THE CITE" COUNCIL or THE CITY OF
TLJK'IMLA, WASHINGTON, REVISING THE PREVIOUSLY
ADOPTED FINANCIAL RESERVE POLICY TO IliCREAM
THE GENERAL,FIND RESERVE LEVEL, ADD A ONIE.TIIIf
REVENUE RESERVE, AND CONFORM THE 1-1IEALTI-1 CARE
FUND RESERVE POLICY TO CURRENT PRACTICES; AND
REPEALING RESOLUTION NO. 1774.
WHEN, 'Cot the well-being acrd aus1ainabilib' of the eiarrinunity, its residents,
and t'usrr essea_ i is indent Lhat tI City of Tukwila be fired ci respond to any and
all ifua Tat =Ad result in a risk andier pis tr}The City's finances inclrXl. tut not
IirniteJ to, rfeve ua stiotielis and unanbcipailed experilifures; and
WHEREAS, ii r# the resiradnailliiity of the City Council cof the City cif Tufrnile to providc
policy direction for 'tie City's biennial budget t iov h me passage pit motions and
Qrdin r s, adophan rrf res&utiona, and f naI approval of d budget and
WHEREAS, ar financial resrrvin pf yr diEsrAblisibers. aIra°l±.and resiorea irrinirYlrr.,rri
rum b. rices rr)Iudrr+ aBIf-illaiWed health oars risscrm tund$. and Speelfred revile -iv and
rcp'rking of 2uih. and
WHEREAS. the B's1 Fradiru; pworrarloled by the Gavecrimem Finance'Officers
Matron recommends Thai this L.nrestrk-A d hind haIonft in The General Fund equal
rr IeT:s Than baro months of regular General Fund operating row -rims og 10.67%; and
WI-EREAS, credit rating argon;nsidt.r oomix ed General Fund and
COnbingency Reserve Fund balances of at least 30% of operating revenue& to ttE a
gozd indir,ation of ,s onhinels and
Viii EI F , vt priory, earn} the financial heath Of the Oily negellvery Imparted
by filWASSiOn grid Changan in slate law; and
( 29 )
171
1 „ It Is lirrienclalty prudent to rare a piurtion a' revenue windfalls derIMed
from one -tinter periodic events, such es the sate of rrrol Iprripr.rty ar *AIM. kax ,Il clr
on construction entity, ars a means of offseidng the effeols of reoeesioris or other
t:Venta that Force the Cally bc reduce ryl Ie r_I:i,
NOiti, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS;
SeoUoe 1. Minimum Fuad 1Talanc
A. At the close of each final year. the General Fund unassigned balance shalt
equal or exceed 1a% and the Contingency Fund ressenna balance EMI equal Cr
oxccod 10% Of trit pntrid10 'Oar leerier*I Ford revenue, exclusive of significant ncn
operating, non-recurring revenues such as real estate sales or transfers in from cher
Iur:1:s
B. At this chase of each fisc..al y :ar, th* marii�irdt,ItiCt l b s dr the Enterprl
Funds exceed Fushall equal or exed 20% of the prErvious yeas reroenue. exelliGiVe of
Siginiairarri r r-4pCralti . rrr m -rte urrirmy r nue SUM > real estate sales, transfers
in from other funds or debt proceeds.
C USe cr draw clown or i iliiVitri7 balances shall occur only upon
recornrnanderaon of City Adnrinislrabon and appreval by City COunCil thrc ugth ti
rearluhon. Should use or draw dawn xc,. r, the Cly Administration shell establish a
plan. no faker ilf ani the end cit 1he lista! year tullumag the year of riectrre, to restore
the fund balance to the prescribed rni Inmmm Icredi Thd Onn shall be pres sed be
and approved by the City Council.
Section 2. me Revenue Rover/v. A Orr -tires I enUe ReServie shall be
established and maintained in the Contingency Fund. The One-lirne Revenue
Rimer shall he credited arir iu:3lly with 10of the prior year line reasnuea to
the exterl General Fund surplus fru the yew i suMelerrt to cover the resew funding.
Use of the reserve shall occur only upon recvrrrmendalian by City Administration id
uppric• al by City CuurlCml through a resolution.
Sachin 3, sopineurud HaIih Cm* Funds. The City shall maintain a reserve in
each cif its swell-inerre2 hea^1h care furls in .an amount equal to 1.5 limes, car 150%, of
the attuarlaplly deterrr rte_ IBFIR (inorrred burl not reported) balance Use of the
resew Oa r :ram nrnl:.ipc,i recommendation by City Administration and approval by
City Council through a res aulio+n
Seclign 4. A MP.70 shaMri campllarce with the Finearrr a Ciel Reserve Policy shall
be provried ID the City Council on an annual bails. r Isir than July 1 of each year.
Corti 5. Repealer. Reenlutiare Naa. 1774 is hereby repeele+d_
PASSED BY THE CITY COUNCIL OF TSE CITY OF TLIKIIVILA, WASHINGTON
eta Regular Meeting thereof this r day of 1,,..344 2015
ATE TAUTHE'NTICTU:
c
CIIriety
r
MMC, C4 C
APPROVED AS TO FORM BY:
A.
Rachel 8 Tur
pin, '
} L. .
Filed with the City Clerk:
Paced by lane City t aur°t
Resoftrlion Number.
172
( 30 )
PURCHASING POLICY
City of Tukwila
Washington
Resolution No. 2016
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF TUKWILA, WASHINGTON, ADOPTING A
PURCHASING POLICY.
WHEREAS, the City Council is committed to the highest standard of financial
management; and
WHEREAS, the expenditures ofpubiicfundsfor the purchase ofand contracting for
goods, services, supplies, and materials must comply with all applicable state and local
requirements', and
WHEREAS, a comprehensive purchasing policy helps ensure that public funds are
spent in th a most economical and transparentway possible; and
WHEREAS, theCity Council desires to minimize confusion and eliminate
redundancies or conflicts by consolidating and updating the City's procurement policies;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. The Purchasing Policy attached hereto as Ex hi bit, is adopted_
Section 2. City of Tukwila Admit istrative Policies 100-09, 300-002, 300-03, 300-07,
300-11, 900-03, are superoeded_
Section 3. The Purchasing Policy shall be reviewed an at least a biennial basis and
updated as necessary,
( 31 )
173
PASSED BY THE CITY COUNCIL CF THE CITY OF TUKWILA. WASHINGTON, at
s Reguiartateeting thereof this I*" day of 1,U 2020,
ATTEST/AUTHENTICATED:
Christy°Flaherly. MMC, City Clerk De'Sean Guinn Council President
APPROVED AS TO FORM BY,
J
Office of the City Attorney
Attachment ExhibitA — Purchasing hasing Policy
174
Filed with the City Clerk' 12-7 41
Passed by the City Council: IZ
Resolution Number. 2015
( 32 )
CITY OF TUKWILA
PURCHASING POLICY
TABLE OF CONTENTS
1. P rocurernent Policy Table 1
Administration 2
A Furpb8
B. Controlling Laws
C_ Compliance with Policy
D. Signing Authority and Approval
3. DeterroiningTotal Cost 2
A. Anticipated Cost
B. Prohibition on "Bid Sp fitting"
C. Total Costs to Include
4, Vendor Iations 3
A_ Ethics of Peace re me Tr t
B. Buy Local
C. EnvironmentalSostainability
D. Social Equity
5. Grants and Federal ... r ,, rrer— ,, r rr 4
A. General Rule
E. Purchases of Goods or Service Reimbursable from a Federal rant
6. Controlled Commodities 6
7. Types of Projects and Contract Approval Levels
A_ Public Works
B. Ali OrtherTypes of Purchases
B Threshold Cost Negotiation Requl reme nts 6
A 51.0r000 or Less: Direct negotiation
B. $10,000-$.5(1,0311 3 quotes needed
C. $50,000 or More: Competitive bids
( 33 )
175
9. PublicWorks Projects..................................,.............,.............,,.............,...,,,.....,.....,.7
A. Defining Project Costs
B. City Labor
C. Bid Requirements
D. Small Warks Raster
E. Limited Public Works Process
F. Prevailing Wages
G_ Bid Deposit, Performance Bond, and Payment Bond
l- Retainage
I. PublicWorksover$1 Million
J. Alternative Public Works Contracting Procedures
10. Competitive Bidding Process,....,.......,.....,...........,......,.....,..,.....,..... 9
A. Public Notice
B. Bid Specifications
C. Award
11 Cancellation
E. Bid Submittal
F. Bid Security
G. Non -Collusion Affidavit
11. Service Categories 11
A. Professional Architectural and Engineering Services
B. PersonalServices
C. Purchased Services
12. Materials,Supplies, EquipmenttunreletedtoPublkWQrks,Servires A&E -113
11 Exceptions to the Competitive Process 13
14. Disposal of Surplus Property ....14
A. Policy Statement
B. Definitions
C. Procedures
15, Additional Consideretions,.,...,...............................,....,,,................_.._.....,.....__....,._.16
A. Ce rtificates. of Insurance
B. State Contractor's License
C. City BusinessLicense
16. References ................................... ,............... .....,...... ...................
,......16
17. Glossary 17
176
{34 )
1.
PROCUREMENT POLICY TABLE
PRDJECTTYPE
Public Works
Project
CIT /TOWN
COMPETIT! VF I 1 DIN REAL HJ EMENTS
Same
Requirement
for ALL dties
If your project is:
<$75,500
$75,500-
S3150,01X1
,$#5.,1300
Type of Bidding
Required:
Minimal
Comp titiian
Process
Small Works
formal
competitive
Bidding
Bidding
Agencies may
seek quotes
directly from
Individual of
vendors. Noeligible
tilimpetithieilRCW
bidding required_
List of qualified
cpptractOrs who
can bid for are
project
behow$35O,0O0_
3 5.0+7,1SS).
Requires local
agencies to
award PW
contracts to
responsible
bidderwith
lowest
responsive bid.
Purchase of goods,
equipment,
%motieS, or
mat eriaLs (not.
connected with PW
project]
cities under
2t}Jb O
papulation
If your purchase
1st
37,500
$+ Soi1-$15,000
x $15,004
Type of Bidding
Required:
Minicrial
Competition
Process
VeAddr List
Formai
Competitive
Bidding
Agenciesmtay
seek quotes
directly from
indi�voduat
uerdofs_ NO
competitive
bidding required_
List of vendors
whq are
interested in
selling
equipment,
materials and
supplies to the
city. (fiC' 1
39.04.1K
Required*
advertise the
solicitation, but
there is no
required method
re wire d met
Sealed bids and
Public bid
opening
required_
Cities neer
20,000
population
Type of Bidding
Required:
State law does mint establish anytspe€Ifl bld limits or
competitive Riot essesthat first-class cities or code cities
over2DiaDp must folimw for purchases. You should
establish bid !inerts and competitive processes in policy.
Services
SameProfessional
Requirement
far ALL atlas
Type of Bidding
Required:
Ail local governments mut follow the same qualifications-
based selectioi QBS} pracessautlhnedin RON 39,60.You
must solicit competetlrre blds and evaluate them based on
qualifications, without, regardto Yost.
Personal Services
Same
Requirement
for ALL sties
Type Of Bidding
Required:
Mate Law does not require any thresholds or processes for
personal services contracting. if yoarr protect receives arty
federal funding, must comply with federal competitive
require men ts. _
Purchased Services
Same
Requirement
for ALL cities
Type of&ddin,g
Required!
State law does notprescribe drry thresholds or processes
for purchased ser vices contracti ng. However, some
purchased sero cesmay require payment of prevailing J
35 )
177
2» ADMINISTRATION
A. Purpose
This policy is intended to d irect the purchase of goods and services ata reasonable cost» An open, fair, and
competitive process is to be used whenever reasor able and possible. It is the City's policy to follow state
re qu irernents regarding the expenditure of publicfunds,to provide a fair forum farthose interested in
bidding on public contracts and to help ensure that public contracts are performed satisfactorily and
efficiently at the least cost to the public while avoiding fraud and favoritisrn.
B. Controlling Laws
The expendltu res of pu bl is fu n ds for the purchase of and contracting for goods, services, supplies, and
materials shall comply with all applicable state law requirements asset forth in the Revised Code of
Washington {RCM and the Washington Administrative Code (WAC), in addition to other applicable local
and federal laws and regulations. The City Attorney shall beconsulted whenquestions regardingpotential
con' Ras arise.
C, Compliance with Policy
The City's department heads shall implement, monitor, and enforce these poruaes» In the event of an y
conflict In procurement requirements or questions about prope rprocedur-e orother requirements, the
matte r shall be re (erred to the Finance Director. Willful or intentional violations of public procurement
requirements may resuIt in personal pens Ides, financial Ilablllties, and/or discipline per RCW 39.30.020.
t . Signing Authority and Approval
1) Per RCW 35A_11.010, the City's authority to contract„ and be contracted with, is vested in the
City °cunni, City COLmcil has delegated authority to the Mayor to execute contracts an d
contract modifications that meet the criteria of this Policy.
2) Any City staff member purchasing goods on behalf of the Catq+ without proper authorisation
may be personally liable to th e vendor and the City, and subject to disciplinary action.
3) Electronic sign atu res of authorized City staff may be accepted pursuant to the City's
Electronic Signature policy.
4) All work or any purchase authorized with a particular vendor, consultant, or contractor that
cumulative lysis expected on a particular protect to a teed an an nual amount of $20,i]00 roust
be In writIrtg, and approved according to the authority provided fo r within Section 7.
3. DET€RMININGTOTAL COST
A Anticipated oast
The anticipated annual need for agood or service{when It cart reasonably be projected) shall be used to
determine the cost of that good or cervi e, and thus whichcorrtract approve I level, cost threshold, and other
related pu rchasin g requi rernents apply.
178
( 36 )
B. Prohibition on *BidSplltting"
The breaking of any project Into units, cr acco mop]Ishing any prof tact by phases, is prohibited if it is done far
the purposes of avoiding compliancewith bidding statutes. RCN 35.23.352(11.
To avoid bld splitting:
1) Combine all phases of a public work project when estimating cost_
2) Combine the total of foreseen identical items purchased at the same time or within a
calendar year's time, in which the cost exceeds competition knits (i.e.office supolies, laundry
services, Janitorial paper products, etc.)
3} Iterns that are designed, or intended to be used together( i.e., water meters and covers), and
the cost exceeds competition limits, should be bid together,
C. Total Costs toIndude
Include costs such as taxes, freight a nd installatiancharges when determining .ivhich oastthreshdd applies. Co
not include the value of a trade-in. Trade-in value should he considered, hetwever, to determine the lowest bid
when competitive bidding is used.
Further requirements for the total quantity of an item Iwhen they can be reasonably projected) should be
considered when determiningwhich costthre$iuldand relatedpurdiasingrequirements apply.
Finally, if a projectisto be completed In phases, the iota I emu mulated cost for all phases should be considered
when determining whithcost threshold app lies.
4. VENIVIIRELATIONS
A. Ethics of Procurement
The City is corn rnitte dto provid inga very fair, transparent and egultab le process to ou r purchases. We ask all
staff participating in asolicitation and/or award process to be thoughtful of a ny pe rceivedoractual conflicts of
interest. See Tukwila MunicipalCode (TMCJ.Section 2.95.03O rCode of EthiCS fo r Empioyees anciAppointed
Officials") for mare information.
The city seeks toavoidsituationsthatinvolveconflictsofintermitsortheappearanccofsuchconflictsbasedon
inappropriateoppartu nities to influencethe solicitation and/or award process. The City usesthe measures of
how a reasonable person would perceive th e situation. A reasonable persrar standard might consider how the
situation would appear if covered by a news story or viewed fro mtheperspective ofapublicinterestgroup.
Common questions toask are: Could you comfortablyexplainyouraction5? Would tax payers believ+eyou
wereacting in their best interest?
City staff should refuse gifts, meals and invitatior6 to events such as concerts or sporting ents, that couIdbe
reasonablypercenyedas: Improperly influeneingperformanrseof your official duties; a reward for awarding a
contract; proffered orgiventoinfluence, firid favor, or With a reascinalsleexpectation ofereatingan obligation
to the giver. Vendarsare pro1uil ted from offs ring giftsdurtng the solicitation and en suing contract award
process. Coritaetthe City Attorney forassistance if you encounter unusuaisitclatiori5.
Finally, contact the City Attorney before initiating a contract with a former City emplayeetodetermine if doing
so would create an actual confiid of interest or the appearance of a conflict of interest
( 37 )
179
a Buy Lneat
It Is the City's policy to take affirmative Steps to encouragelocal businesses to apply to participate In the
procurement process_ Fu ether, to the extent legally possible, the City will consider the use of those local
businesse sin order to support andenhancethe localeconomy,
C Environmi:ntalSustainability
The City iS committed to the protection ofthe environment arid has taken steps towards be corning more
sustainaipie. Aocard nglyr departrrmernsare stronglyencouraged to purchase recycled and other
environmentally preferable pr uctswhenever practicable and to encouragethisofthe ircontractars-
However, nothing in thispolicy shall be construed as req uiring th a purchase ofprgd ucts that do not perform
ad•quteIy or are not available at a reasonable price,
D. Soclaf Equity
The City shall endeavor to contract with minority-owned businesses and contract rsand materialssu ppliers
pursuant tothegoafs outline dif! the sty's Equity Polity,whichprovides guidance toCrtyeledtedof�iicials,staff,
boards and c=ommissions, partners,. residents, businesyesand gut on how to active lyprorndte. a auItalsle
access to opportunities and seruices.
5. G RAIJT5 AN DFEGERAL FUND/NG
A. General Rule
N ot all grant fundedprojects are covered by this policy because many of thegrants have their awn
procure rnentreq+utrerr.ents_ 6rantManagers are responsible fgtgraritpurchnes, but shall tomtit with
Finance Director ordesignee priortoinitiating any grant purchases. G rant m anagers are responsible for
e nsuring a II grant purchases aomplywith grant procurement req urements.
B. Purchases of Goads arService Rei n ursable from a FederaIGran t
When spending. federal fundirg,the City compiles with the Llniforre Administrative Requirement, Cost
Pnnelpals, andAi d it Requiremenxtsfor Federal Awards IUniforrnGuidance published in Tee 2 the Code of
Fe derail Regulations {2 CFR 200), specifically 2 CFR 20@_11athrough 20(1.326, which earl be accessed HERE_
Please note that all grants are different, so one size does not fit all, Some grants s implyrequire youto use your
awn procurement rules, while others require youto inert t1* canfracir clauses into your contract_
However, some general guidelinesfrom the Uniform Standards are outline dh lova
11 Section 200,62 of the UniformGuidance re ENires and defines inte rna I control overcomplianoe
requirements for federalawards tomeana process imp iementedbythe City designed to provide
reasanableassurartceregarding the achievement of the following objectivesfor Fe decal awards:
a. Transactions are proe+rlyrecordedandaccountedfor,inordeirtor
i. Pe rrnit the ;preparation of reliable financial state rnents and Federal reports;
11, Maintain accountabilitynverassets; and
111 Lternonstrate corn plrance with Federal statutes, regulatio ns, and the tie rrns and conditions
of the Federal award;
180
( 38
b_ Transactions are executed In compliance with
i. Fe derail statutes, regulations,. and the terns aridcon ditionsofthe Fed era Iatiwardthat
c+auId have a direct and materiraleffect on a Federal program,and
li. Any asthe r redae ral statutesand regulationsthat are identified in the Comp fiance
Supplement; and
iii, Funds, property, and other assets are safeguarded against loss from un,authorized use or
disposition.
2) 5aittion .320 of the U niform G uidance requires the City to ensti re that pu rchases are procured in
accordance with the following guidelines:
a. Procurement of$ 000orrdunder: To the extent practirable,the City must distribute these
purchases equitably amongquelih dsuppliers. Purchases maybeawarded withoutsolielting
cornpe atria quotations if the City considers the price to be reasonable
b. Prvturerneretbetween $3,000ord$154G Price or rate quotatiar mustbe obtained f rom an
adk gvatun.irribar sif qualified sources.
c. Proeurerncrrtabove $150,000. Sealed Bids orCompe#itivePro posalsorSole Source;
i SealaedBisls— Bidsarepubliclysolicitedandafixed pricecontract(IurnpsumUnit price
is awarded to the responsible bidder whose bld, conforrriing with ant h ie material to rrr
and conditions of th e invitation forbids, is the fowestin prh E.
ii. CornpellthureProposals — Used when rnore than one sou rcehas subrnittedanoffer, and
eitherafixed price orcost-reimbursement type contract Isawarded. It is generally used
whe n co nditions are notapprvpriatefo,rthe use of sealed bids_
3) Appendix II to Part NO—Contract provisionsfor dty co ntract undrsrfederal awards requires the City
to verify that all contractors are not suspended or de bane d from Federal funding. Priorto executing
a federal•aid agreement the City must verifystatus with the SysternforAward Managernent(SAM)
at https ;/Jvuww. sam.gov/SAM/pages/pub Iic, aearchRecardsisea rch. isi to determine if the
contractor/consultant has been excluded from biddingonafederalaid contraa, SAM is the
electronic versica n of the Lists of Parties Excluded from Federal Procurement and Mon—Procurement
Programs {Lists), which !de ntlfles those parties that have been suspended, debarred, otherwise
exdudedfrom bidding onfederaIcontracts orconsuftantsthat will not be eligible forf edera1aid
reimbursement.
4) Pursuant totheWashirr$ton5eororetaryofSteteLocalGovernmentRec rdsttetentlonSehedule,
financial records pertain inghthe purchase must be retain ed in accord nce with the applicable
Washington State Records Retention schedule_ Further, each City De partrnent awarded grant
services shall maintain recardsof all purchases and be responsible for following grant requirements,
( 39 )
181
S. COIN-MOILEDCoMMODI11E5
I f the cost of the following ite m{s} Is over $75.00, purch ase of the ite rn re quires approval from the Tukwila
Technology and innovation Services f]e partment Director or designee:
A. Computers and related equipment, fax rnachln es, printers, scanners and copiers, cell phones,
telephoneequipmeri, pagers, softwa re or systems.
B. Anything the Tukwila Technology arid I nnoaM on Services pepartrntent is requested or required to
Irystail, ronne rt, a nd/ar se rviae.
7. TYPES OF PROJECTS AN Ca CO NTI2ACTAPPRO#AL LEVELS
1 he following types of projeclsand cantraCtapproval Revels are intendedtokrefor projects with previously
allocated fund s a pp roved by City Council.
A. PublirWork :
1j $20.00O or less Approved by 'Department Dire ctcr
2) $20,001 to $39,939, Approved by Mayor, providedthe project i5 in the Capital improvement
Program (CI P).
31 $40,000 ormor e.__..:,_Approved by City Council
All public works projects rnuStbe within the CIF budget, If additianalfunds are required, the
re q ue st must be approved by thy Council.
B. All other types of purchases ( prrtfesslonalsarwioes, personal se mikes, purchase d servftes,
materials/supplies/equipment):
Professio-nalservices provided by consultant thatfallunder archi-tecture, eri ineering, land
surveying. or landscape architecture. Contract approval levers:
1) $20,000 or less Approved by Departmc nt Director
2} $2,001w$39. ,,,,ApprovedbyMayor
3) $44.0uo orrtsare Approved by City Council
Cost mod ifications that, a ithersingly{ orcombinedwith al previous mad irru tions, increase the
total' cont ractamountfrom underty over the $44,IMO signature threshold shall be approved by
City Council.
3. THRESHOLD COST NEGOTIATION REQUIREMENTS
The foflowing cost thresholds ap ply for purchases of supplies, eq uiprnent, and non-professional services.
Non-prpfesionalserwice5 include rou tine and rontinuingfunctions predomnate iyrelate dtophysical
activities.
The cost thresholds below do not apply to purchase constituting public works or professional services
{Including architectural or engine eriingservIcesj. Refer to Section 13 for situations involving sole source or
emergency purchases -
182
(an]
A- $10,000 or Less: Direct negotiation
Purchases in this price range may be ente red into thro ugh direct negotiation- Competition is hot required,
though departments should still make eve ry effort to receive the best price possible. Documentation on all
Quotesshould be retained.
B, $10,000 to $50,000: 3 quotes needed
For purchase 5in ibis price range, at least three quote shall be obtained- Quote smay be obtained by
telephone or in writing. a¢cumentatlon On all quotes Will be retained- Th e d ocume ntation will include the
date, time, vendor contactname, phone num be r, email (if ppIicaI Ie price quoted and an' reasons for
acceptance or refusal of the quote,
C. $54,000 or More: Competitive Bids
For purchases in this price range, competitive bids shall be obtained from at least vendors. Bidsdc+ not
need to be seale d but shall be In writing. Set Section 10 on competitive bidding fora detailed description
of the procedure5tobe followed.
9. PUBLIC WORKS PROJECTS
Public works protects are defined by RCW39-04-010 to include but are not limited to work, construction,
a Iteration, re pa ir,orimprovemert lotficrthan vrdinarymainte nance, engineering analyse, end design and
other professional services) x2cuted at the City's oast, or w hlch Is by law a lie n or charge on any property
therein. If the Citycontractsoutformaintenan,cearrepairs, the worl is public work for biddingand prevailing
wage purposes..
A. Defining Project Costs
The cost of public woks project includestherestsof materials, sup plies, equipment, and labor on the
torlstructiort of that project_ It is im portant to deterrn irre the estiriated total c onstructicn of each project in
ord-ertocorrectlyapplybldlimitdollaramauntsto determine if the public wor ks project must be competitively
bid. If the total project amount is overthe bidthreshcld5,then all trait no pnatter the indiriduddollar
8 mono ltr must be procured through the bid process. The estimate tray be prepared byan outside third party;
however,thefinal cost estimate must be validatedbythe City,
B. City Labor
The Cityrn ay use Public Worts staff to perform and execute all projects not exceeding $1115,155(rrE.Ibplecrafts), or
not exeeeding$75,000lsinglecraft). RCW35,23352 These projects include equipment, materiel, supplies.and
labor cost. Howewer the City must provide a repo rt tothe state auditorofthe cost of all pubic wario excessof
$5,0O0thatare riot let by contract. For any project usirsg City workersthat costs in excess of525,0OO,theCity must
publish cl riptiiurtoftheprr project and Itsestimated costln its offida I newspaper at least 15 days before beginning
the work. RCW39.04.020.
C. Bid Requirements
Washington State law req uiresthe Cityto call for bids whenever the cost ofa public work will exceed $116155,
if more than one craftortrade is involved. If onlya single craft or traders rte projecti for street
signalitatlonorstreetllghtingrbidsmustbecalledforifthecostisgreaterthan$75,000. The City has
establishedthefollowing additional iguidelinesfortime bidding process:
( 41 )
183
1) Pu.ttfic WorksPrraliecl $0 w $5170. No competitive bidding is needed.
21 PubfkWorks Projects $501to$Z $E500: Solicit 3informal quotes b,ytele phone orinwriting,
3j POYeWtrrksProfrcrs$ ,501 to $14000: Solicit 3informal quotes bytelephorieorinwriting,
prefershiyfrorrr the5mall Works Roster_
41 Public Walks Pra cls$14tiO1ta, ,000o Solicit3quotesfrom the Small Works Roster.
5) Public Works Projects$35,O01to$190,00th Solititguotesfrom atleast five contrattorsonthe Small
Works Rosterin a m: annerthat will equitablydistributeopportunitiies.
6) Public UVarf.5P ects$15O,0P1 ha$30Q, 0001 Solicit 5quotes frorrrSmall Works Roster andnotifythe
re ma iningcoal ractorson the Rasterthat quotes on the work.arebeingsought.
7) Exceptions. If the public works projectI $250, COD orgneaterarid is fu n ded in whole or in part
with federal funds, aforrnal bid process is required. This threshold is set by the federal government
at 2 CFR g2130.22 and 48 CFR g 2,101 ("5irnpiified acquisition threshold") and Is subject to periodic
adjustnrrerrtfor infladon pursuant to 41 U.5_C.1 190.
3 PubiicWorks projects Mare awn $300,[ : Adaertlseand call for bids using the form albid
process.
All oontractsare tobeawarded tothe lowest responsible bidder. RCW39.04,. 50outtinesoireria rhat a bidder
must meet in orde r to be considered responsible.
D. small Works Rostcr'
if the publkworkscontract isless thari$350'.CFstate la:authorizescitiestouseasmallworksrosterprcxess
rathe r th an thegeneralcornpetitive bidlingrequirernerrtstoaward publiccontracts. The Cityhascontracted with
MRSC (Municipal Rewarch and Services Center) for the useofa statewide e lectronic database forsmail public
wurkscontractors, consultings€rvices, andvendors,
E. Limited PtibbicWorks Process
The limited publicworksprocess isatype ofsmell works roster pre sthatappliesor ytocontractsestimattdto
cog lessthan$50,000- Whibrid arl tisernErrtisrequired,theCitymuststills.frcitelectaonicorwritten
quotations from a minimum of three contractorsfrom the appropriate SrnaillMorks Roster. This process
described in RCN 39.04.155(3) and alb otheCitytawaiveth€paymentand performance bondrequirernentsof
Chapter39.Cte RCW and the retainage requirements of Chapter 60.72 RCW. However, prevailing wage affidaavits
and insuranee are still required. Consult with tti e CityAtbrney for prior a pprovi when waiving both of these
rem.' irerrients.
F. PrevaihngWages.
The City is required by RCW34.12.04C to req airs contractors to pay prevailing wrages an all pu bit wrorla contra
A"Statement of Intent to Pay Prevailing Wages" must be received forma contractor before any payment is made,
and an "Affidavit of Wages Paid' must bereimiuedfollowing final acceptance of the work.
184
( 42 )
G. Bid Deposit, Performance Bond, and Payment Bond
The City may require a bid deposity Fen solicitingcompetitive quoti or bids_ The bid deposit can beinthefarmof
a certified check or bid bond in an arnouritequal to and not lesstha n 5% of the total bid and shall be specified in
the call for bids_ All public works contradtrrsshall fumisha performance bond and payment bond in anamount
equaito the total amount ofthecontraction a form approved by the City Attorney_ In Ileu ofape rforeranceband
on contracts of $15o,000or le Is, a contnct€w may requestto have 10% ofthe contract retained fora period of 31:1
days after the date of final acceptance. The request witIbeevaluated and accepted orrejected bythe City
Attorney.
H. Retainage
Ctiapter60.213RCW outlinesthereq uirernentsrelatedtoretain age. The intent of the relainage is to guaranteethat
labarersandmaterra1supplierswill be protected for payrnentcrfanyclaims arisingcinderthecontract arid with
respecttotaxes, increases,penalties orliens related to apubtit improvement project ( RCA' €{t_28j. Reteinagemay
also be used tosatisfytaxclaims bythe Department ofRevenue nclic) rthe City, prevailingwaeerelated claims by
the Department ofLabarand I r•duchiesr unemployment compensation re lated cla ims by the EmploymentSecunty
De partrrrent,andcontract performance claims bythe City itself. State law requires the City to withhold up to 5% of
the contract priceforaeta ina.ge purposes.
I. Public Works over$1rytilion
RCuv3J_3D.t Sospaclfiesthat Inorderfortheirbidto be considered resporrsive everybidderforapubItcwc»1s
con tract ofover Simillionrnustsubmit{eitherwiththeirbid orwithin one hour of the hid submittal time) the
namespial] aubcontractorsthatwIll beusedierheating, ertiIatiori and air cQrdiolin ,. pturnbingandeledtrlrai
work.
J. Alternative PubiicWorks Contracting Procedures
Chapter39.aa RCW permits alternative public works contracting procedures. The State legislature finds
that the traditional process of awarding public works contracts in lumpsurn to the lowest ares:ponslble
bidder is a fair and objective method of selecting a contractor. However, under certain circumstances,
alternative public works contractIng procedures may best serve the public imerestrf suchprocedures are
Implemented in an openand fair process based onobjecth+e+an¢eau table criteria. If the City desires to
utilize the alternative procedures, its hall fallow the requirements set out in RCW 33.10-
10. CONVERTIVE BIDDING PROCESS
A. Public Notice
RCW35.23.352(1E sets out the advertising requirernentsfcarthe public works bidding precess. Forallcontracts.
that requirebids..naliceshall bepublished Inthe official newspaper tleast13dayspriartotheduedatefor
bids_
B. Bid Specifications
RIdspecif-rtatiionsshauld incorpvrateadearand atcurate description of the technicaI re irerrier for the
materia(, product, orserviceto be purchased_ Such descriptions should not containfeatwres that unduly restrict
competition.
( 43 )
185
When it is impractical or unetororrricatto make clear and accurate description req uirements,a "brand name or
equal" description may be used. The responsibility of demonstrating to the City's satisfaction that aprod uctis
"equaI"tothat specified shall be on the vendor proposing the substitution.
Re guests for approval of substitutions must be made with sufficient time to allow the City to adequately review
the proposal, including time for verdorsto respond to question sand req uestsForadd itional Inferrrnatlon or
clarification. The City has no obligation to accept prapasedsubstituti.
Acceptance of asubstitute productproposedasan"equal" to that specifredywillbemade inwriting. If this
acceptance occurs pniortothe bid, oth€rbidderswillbe notified to the extentpractirat.
C. Award
The contract will beawardedta the lowest responsive and responsible biddeewhosebid meets the
requirer errtsandcriteria included in the lnultationfearbldsrorall bids will berejected. RCW39.04.350outlines
criteria that a bidder must meet in order to be C011151cleredresponsible. The City also requires that the contractor
roust:
▪ Have or agree to obtain acurre ntcity 'businesslicerise
• Be current with .all applieable licenses, taxes, and fees owed to the City ofTukwlla
hi addition, the Ciwadoptsthe following supplementalaiteria which maybe used inconnectatu with specified
projects~
• The ability, capacity, and skill of the bidder to perfarrnthecontract or provide the servicerequired
• The character, integrity,, rep utatirsn,judgment,experience, and efficiency of the bidder
• Whether the b idde r can perform the €ontractwithinthe time specified
• The quality of perf+orrnanceof pretriausaxwntractsarsa rwices
• The previous and existing compliance by the bidder with Taws relatirg to the Contract orsenrwces
• Such otherinformation as maybe secured having bearing on the declsiontaaward the contract
When using the supplemental t tertt described above, the Citywili Iridude the supplemental criteria in the
bidding documents, together with a basis for evaluation, deadline for bidde rto submit required
documentation, and deadline for bidder to appeal a "not responsible" determination.
Whena trade-in option exists and is in the City's best interest, the price offered on thetr,ade-inwwill be
considered whe n determining the Iowvest responsive and responsible bide.
F CW X9.30.0m allows any la cal sales tax revenue generated by the pu rch as e to be considered in determining
the lowe st re sponse and responsible bid. Other preferencesfavoring kwal businesses. are riot permitted_
D. Cancellation
An invitation for bids may be cancelled. Adr tionally,theCity{at is sole discretion)may choose to reject any or
all bids. inWhelk or In part. Aresolrution Is the preferred methodfa.rrejecting all bids; examples may be
found In the City's Digital Records Center or by contacting the City Clerk's Office.
186
( 44 )
E. Bid Submittal
Bids will be submitted asspecifiedintheInvitationforBid bythe appointedciateand time listed Inthe
invitation, Eathbid will bedated, andtime stamped asitIsreceived. Late 'bldswill not beaccepted. If the bid
is fora sealed bid prote ss„ all qua lifted hids will be openett and read aloud publietyatthe appo inted time.
No Caty rep resentttiveshall inform aoontraeta rof the termsoramount of any other contractor's bid for the
same proj oat prior to the hid ape ruing date and time. Once bids harve been s.ubrnitted (and opened, if th a bids
are se a le di, the City may not negotiate with bidders. The contract rnustbeawarded tothek westresponsive
and resporr blebidder, oreIse aII bids must he rejected.
A written recdshallbemadeofeachcontrac eshidonaprojectandofanyconditlonsimposedonthebid.
Immediately after an award Is made, the bid euotationssh all be recorded, open to public inspection, and
available byteiephoneinquiry.
F. Rid Security
RCW 35.23.352{ 11 provides that each bid must be accompanied by a bid proposal deposit In the formaf a cashier''s
check, postal money order, or surety bond to the City Coundl for least 5% of the h id a rriou nt, Includingsalestass.
The statute adds that "no bid shall becons lderedUnless acc rmpaniedbysuehbid prcposa I deit.'
G. Non -Collusion AffidavIt
Each biddershall be required to warra ittlhatthelrbid is genuine,and that they have not entered) into =fusion
with other bidders, by submitting with th eir bid an executed and notarized afhdavlton a form appnovedd by the
CityAttorney.
11, SERVICE CATEGORIES
There are several different rategorie5 of services, so It Is important to date rrnine what service you need
because that may guid e the mannerof solicitation.
A. Professional Architectural and Engineering Services
Professional architectural and engineering (A&E) services are s.eraces provided by a ny person, oth•erthan
an employee of the agency, that fall underthe generalstatutorydefinitionsof=
• Chapter 18.08 R N i rchite cls)
• Chapter 18.43 RCW Engineers and Land Surveyors]
• Chapter 18.96 RCW ILandscape Architeds}
1} PurchaseA&E services.
By law, A&E cansultants are first selected based upon theirqualificationsa5 opposed to price. See Chapter
39.80 RCW. This statute says that city may not consider p rice in the selection process for professional
A&E services. Rather, the City' mustselettthe most qualifiedfirm a n d the n negotiate a price for the work
contemplated.
The re are two ways to selea an A&E.consultant
• Use a Request for Proposal (RFP). This requires the City to draft a written scope of the
projectand list the criteria vsedto select the consultantfromthe City's MR5Carchiteaural,
landscape architectural, and engineering service roster pursuant to the process in Chapter
39.80 RCW.
( 45 )
187
• Use Request for Ctualifications(RFQ).. This require sfollowingthe formal RFQ pro -cess in
Chapter 3920 RCW.
Once consultants have submitted their proposals orqualifi tons, as applicable, the City will negotiate a
contract with the most quakfied firm at a price the City dee ins faW artd rea sonable. In making its
determination, the City will take into account the estimated value of the services to be rendered as we 11 as
the scope, complexity, and professional nature of the service to he provided. If the City is unable to
negotiate a satisfactory contract with the firm selected ata price that is determined fairand reasonable,
negotiations with thatfirm will be formallyterminated. Another firm wrl then be selected, and the process
continued u ntil an agreement isreached or the process terminated.
2) Publication.
RCW 39.8A O30 requirmesthat the City Shall publish in advance the City's requirement for professional
services_ The City may comply with this section by_ (1) publishing an announcement on each occasion
when profession a I se rvices provided by a consultant are required by the City; or (2) announcinggenerally to
the public its projected requirementsfor any category or bile of professio nal service to create a Consultant
Roster_ Advertising for the Consultant Roster must be done at least once a yearlay PARK= the City's
behalf_ The MRSC Consultant Rosterwill distinguish between professional architectural and engineering
services as defined in RCN 39.8DO20 and other consulting services. Firms or pe rsons providing consulting
services shall be added to the appropriate Roster at any time they submit a written request and necessary
records, The city reserves the rightttt publish an announcement on each occasion when professional
services or otherconsuking services are required.
S. Personal Services
Person: al services are those provided byindependent consultants that require specialized knowledge,
advanced education, and/or professional licensi ng to provide intellectual service. This includes but is not
lirnited to accountants, attorneys, strategic planners,stutliesf a nalysls,and tralnings_
Piirchases of P+ersn ri al services. Persona I services can he purchased n a variety o f ways. The city
can send a written solicitation to qualified firms or indNisivais de scribing the needed services.
This solicitation shouldrequest prices, sdiedule5, and qualifications_ If helpfuI, utilize the MILSC
Consuhant Roster. Atte motive ly,developaformal RFP and advertise for the services desired_
C. Purchased Services
Purchased services include those provided byvendorsfor routine, necessary and continuing functions of
the City_ These servIcesare usually repetitive, routine, ormechanical in nature, support the agency's day-
to-day operations, involve the completion ofspeCific tasks or projects, and Involve minimal decision-
making, There area number of purchased services, however, that hove r owerth at thin gray line between
purchasedservicesand public works contracting. For exam pie, the Department ofLabor and Industries
considerssome servicecontracts„ such as IfifAC maintenance or road striping, to be public works proj ects
and s ib act to public bidding requirements. if a particular contract is very near the gray 1102, the
conseNative app roach is to consider it a public works contract.
188
( 46 )
ra rehgsesofPurchasedSen,Iccs, Similar to personal services, purchased services can be
procured in a variety of ways. The Ciitycain obtain quotes, or use a formal hid, or an RFP. if
obtaining quotes, include requeStfor price, sthedvles, and qualifications- Evaluate proposals
received and determine the lowest responsive bidder.
12.. MATERIALS, SUPPLIES, EQUIPMENT(UNRELATED TOPI,1BLICWORKS, SERVICES, ARE)
Distinguishing between puiodic works and materials, supplies, and equipment not used in public works is
important because different biddingrequirements apply toeach, Some "r iaterials, supplies, and
equipment"notused in connection with a public works pmjector Improve-mentare fairly easy to identify
(rubber bands, fire trucks, copy machines), as well as many "services." Sorne mate ria is, supplies, and
equipment are more am biguous. Oth ermaterials, including telecornrnunicatlons, data processing, and
software have specific purchasing guidelines established in state law.
A. Telecommunications, Data Prouessilig and Software. The State Legislature, recognizing the
unique aspects of corn puterand teleoemm unication systems, established an alternative process for making
such purchases. RCW 39.04:274, which is available to all municipalities, allows purchases through use of an
alternative competitive negotiation process requiring, at a minimum, the following steps:
1) A request for proposals ( RF P} must be published in a newspaper of ge neral circulation at least
13 days before the last date on which the proposals will be received,
2] The REP rnuetidentify signifi+ nt evaluation factors, including price, and their relative
importance.
3} The City must provide reasonable procedures for technicalevaluator' of the proposals,
identification of qualified spumes, and selection farawarding the contract.
4) The award must be made to the qualified bidder whose proposal is "most advantage ous'to
the City.
5) The City may reject all proposals for good causeand request new proposals.
B. Additional guidance regarding purchasesof materials,suppliesand equipment can be found in
Section R. Refer to the Procurement PelicyTable In Section 1 of this policy, and ask questions if you are
Uncertain.
13. EXCEPTIONS TO Tel E COMPETmWE PROCESS
State law provides for exceptions tothe biddingrequire mentsoiitlieedinabovesections. These exceptions
only waive the competitive bidding requirements, nvtthe contractual requirements, approvals, or
insurance requirements. City staff may not use personal pre fare n ce as the basis for claiming a single source
ofs ippfy-
Exceptionstothe competitive bidding re qu ireme nts include:
Pu rchas es thatare clearlyand legitimately limited to aSingle source af supplysuch as:
o
Lice nsedorpatentedgoodorservire
c Items that are uniquelycompatible with eaustingequIpmenr.. Inarertittry,systems, programs or
services
( 47 )
189
o Meets City standards (ie. watermeters)
o Factory -authorized wairantyse rvuces
A resolution is the preferred method far sole source purchases; examples may be found in the
City's Digital Records center or by contacting the City Cie rk'sOffice.
• Purchasesinvolving s pecialfacilitreS or marketcand'itia;s
• Itemisofspecialdesign, shape ormanufacture that matches orf its with existing egLiprn nt
ivento ry, systems
• ite m will be sold before the Cltycan con duct the bid process when over bid thresholds
• Purchasesinanemergency (seeTMC Chapter 2 57,"EmergencyManagement")
A resolution is the preferred method for declaring an emergency as prerequisite to purchases
during an emergency, examples maybe found in the City's Digital Records Centeror by contacting
the City Clerk's Office.
• Inter-fiovern mental Cooperative Purchases
•
Purchases oflnsuranceorbonds
• poi lutioncontrol facilities andsome neihbanccod "self -he Ip" projects may tmexempt from bidding
requirements
• Cities maryb.Irethest.ateorcountytodoroadprojectiwitho tgoingoutforbids
• Real property_ Aco uisitionofrealpropertyis exemptfrom the competitive biddingrequirements of this
policy. U pon ap prova I of the CityCou ncil, the City Administrator may proceed to acq u ire real property
through negotiation. Such negotiations shall bebased upon anindependentfeeappraisal ofthe
property.
14. DISPOSAL OF Ai RPLV S PROP ERTy
A. Policy Statement
City assets in excess of $5iO that a re no longer useable, are no longer of value to the City, or are surplus to
the City's needs may not be removed from City ownership, sold, or in any °therway disposedwithout a
declaration byresolution of the City Council_ Similarly, Items in excess of thatare no longe ruse able,
are r10 longer of value to the City, or are surplus to the City's needs may not he removed from City
ownership, sold, or in any otherway disposed with° u t approval by the Mayor or City Adm inistrator. Ail
ite ms of $100 or less may be disposed In accordance with the direction of department directors.
B_ Definitions
City Asset means any tangible ite m purchased with City funds valued in excess of $100.
TIS Asset means compute rs and related equipment,fax machines, printers, scanners and copiers, cell
phones, tele phone equipment, pagers, software or systems, and anything the Tu kw Oa Tech nolgyand
innovation Services Department Is requested or required to in stall, connect, or service.
190
( 48 )
C. Procedures
2) Div asalof atyi pertyvalureadlesstlresrr shall fallow this profs.
O Whe n a City department determines an item of this value is surplus to its needs, th e
department shall notify the Mayor's Office and all otherCity departments of the item savailabgity, seeking
flrstto reassign Its use to ancatherCity department. TISAssets shallbe exemptfrorn this note lratlan
requirementto City departmentsotherthan the Mayor's office_
o if no otherdepartments are interested in the Item, it may be disposed in the method
seen most prudent by the de pertinent director_ The director should first notify the Mayors Office and
Finance Department of the intended method of disposal prior to finalizing the process for disposal_
211 Disposal of City property valued at 5500 at more shall fano wtitrsprocess:
¢ Reassignment of Assets, t he n a City department makes a dete rrnin atipri that a City or
TIS Asset with a value of S930 or more is surplus to its needs, the departmentshall notify the Mayors
Office. The rwlayor's Office shall assess whether the City Asset can be reassigned within another City
department where it can be of use or value. TIS Assets shall be exempt(rarnthe requirement to be
reassigned tootherCity departments.
O Minimum Requirements.. if it is riot possible to reassign the City Asset or the item is a 115
Asset, the Mayor' sOffice shall prepare the asset For declaration of surplusbythe City Council, Each asset
requiring a declaration of surplus must have a value assigned and a recommended method of disposal.
o Methods of Dispersal. The primary method of disposal to the gene ralpublic is by sale.
Recognized meth+dS+ fsale include cilrectsale, sealed bid, trade-in or auction, Other methQcls+afdisposal
to the general public must be clearly detailed in writing and must have the consent of the City Council.
o Transfer to Another PublicAgeney, The City Council may transferasirrplu5assettoanother
public age nry upon written request and a determination that it is in the public interest to do so. Such request
shall specify the asset andtheinability oftheother publicagenzytoothavulse afford tobuy it. The City Council
may e led to trade assets, authorizethe Mayor tonegotiate payrrientortra nsferthe asset without compensation,
A resolution the preferred method for surpiussingof City property; examples may be found
in the City's Digital Re cords Center or by contacting the City Clerk's Office.
31 A nidi Bonar Requirernerrts:
aASSeits over $.5O,O00. If the value of the asset is estimated to be more than Mow, and
if the sale or conveyance is to ariothergovemnrental entity, the provisions of RCVl Section 39,33.0M shall
apply. This includes several requirements, including public hearing and certa in notice provisions,
O UltilityAssets. If the asset was originally purdhasedfor'utility purposes, the provisions a
RCW Se won 35.94.040 shall apply, This includes several requirements, including a resolute and public
hearing.
o Trade -Ins: Trade-in of old eq iprnent lo upgrade sim ilar o r reasonably related equipment is
permitted when it is in rhe best interest of the City. The requesting Cepa rtnri nt Directors hall be region blefor
the sale, trade, or other d ispositionof surplus pro pertyand scrap be longing tothe City of Tukwila when used for
a trade-in. Trade-ins mustbe negotieteck, docurrkntedat "FairMarketValue"' by the Department Director, and
( 49 )
191
declared surplus aheadoftitre bythe City. Fair Market Value can be determined byfindingcompara4le units
that have beensold at online auctions.
Other: If the asset propose des surplus is evidence released by the Court, seized assets or
unclaimed prope rty, the mayor's Offices hall reit iewthe appropriate statutes prior to asking the City
Council to declare It.surplus_
4) Final Daum! ma con of VCriue
When disposal Is made to the general publicthrough direct sale, sealed bad or auction, final
daterminabonofvalue shall bethe highestrespor> iblebid oroffer.
51 1Prcilifblitedisenef!t
Itis recognitedthat City Council mernbersand Mayor are prdilbitdd by state law from benefiting
from the disposal ofpublic assetsoftheCity. , Great care 5houIdbetakentoassurethetaperCeptionofbenefit
toemployeesandothers 'Joint usinesswiththe City does not occur.
5} Defegotion ofAutirarity
The City Council may elect todelegatethetask ofdeclaring itemsst+rplustothe Mayor by arm riding
pr adding to this policy and Identifying the conditions thereof within this policy. If such adelegation ismade,the
prohibition ofbeneftingframthe dispasalofpublitassetsis extended to die Poi ay or aridhis/herirnmediat€
staff.
15. ADDITIONAL CONSIDERATIONS
A. Certificates of Insurance
The contractor or corconsultant may be req uired to prouidethe C.kywith aCe rtifkateof Insurance, naming th e City
as primary and noncantaibutoryadditional insured with an additional attached endorsement. Insurance
require rnents are determined by WCIA ( Washington Cities I nsurartce Authority) andthe I tyAUtorney,
B. State Contractor's License
it Is unlawful for the City to hire anyoneto perform public work o our propertythatdoes not haw avaiid State
of Washington Contractor's License. If someone is not properly licensed, IX) NOT HIRE THEM. you may lookup
a contractor to determine If they haveavalid Contractors License at via the WashingtonStat;e Depart_rnentof
Labor and I nd ustr+j su+tebslte: https: J/In i,wa. gov/licensir4g-hernnits/contractor s/hiring-a-cardtrartor/verify-
contractor-tradesperson-bus iness
C. tatyBusiness Licecse
ACatyofTukwilabusinesslicensemayberequiiredforanypersonorbusinessworkinginsidethecitylimits. See
TMC title S, Business Licenses and Regulations -for specifies.
1E_ REFERENCES
Revised Code of Washington (ROW) 39.80 {Contracts forArthitectunaI and EngineerongSe Nikes)
RCW3 i.O4(Pu blit Works)
RCW 39,34 ;Irate rlal Cooperation Act}
RCW 35A.40(FiscalPrarrisions a pplicable to Code Cities), 35. 3 (Second Class Cities)
192
( 50 )
Munlelpaf Re sea reit Services Center (MRSC)pubiication: 'City Ridding Book—Washington State"
Federal Off Ice of Menagernent and Budget (OMB} tirrforn7Guidance CFRs: Title 2CFR 20D. et al
City of Tukwila Gra nts Policy (TBD)
Procurement Card (Pcd) User Man ual
City of Tukwila AdrninistrativePolicy–Equity Policy
City of Tukwila Administrative Polley 403-05– Processing of ContractsfAgneements
City of Tukwila Capital Improvement Program Policies and Procedures
17. GLO55ARY
Amendment – written modification oraddition to apurchase o rclerorcontract authorized by the appropriate
auth orit.
Jird– The executed document subrnitted byabidder in response to notice inviting bids, a proposal ora
request far qualifications.
Bid Bond–A bond Qrdeposit submitted with a bid,. for a sum not less than Sit of the bid a mount {Including sales
tax}. Designed to helperisvrethat abid has been made in goodf aithandthatthebidderwillerrterintoacontr
if a bid is accepte d.
Bidder–A person or legal' entity who submits a bid in response to a sol`iWatlan_
Competitive &riding – The submission of prior's by individuals orflrins competing for a contract, privilege, or
right tosupoly merchandiseorservlces.
+Contract–A ve rbalor written, legally binding mutual promise between at least two parties.
Designee–A dulyauthorized and appointsdrepresentative ofanemployee that holds a superior position to
the personappointed to re presnth Irn or her,
Emergency– Unforeseen circumstances beyond the City's control that p resent a reak immediate threatto the
proper perfonnanceof essential functions, or that will likely result in material Joss to property, bodily injury, or
loss of fife if immediate action is not taken.
Equftrrb+distribute"–MeansthaCitymaynotfavorcertain contractors on the appropriate Small Works
Roster overother contractors or the appropriate Small works Roster who perforin similar services.
Lowest (Responsive and) Responsible &rider–The bidder submitting the lowest price that is. also capable of
perfon-ningthe proposed contract_ See also "responsive bid cler and' responsiblebidde ."
Non -Prof mita!servicesorPirrrhasedServices–servicesprovidedbyvendorsforroutine,necessaryand
continuing function sof alocal agency, relative toaphysicalactivity, Examples include, butare not limitedto:
• Courlerservices
• Janitorial services
• Disposal services
• vehicle inspection, repairorup-flttirg
• Office furnlshire installation
• HVAC system maintenance
( 51 )
193
OrdinaryMaintenaance-Work not perfarrnedbycontract andthat is performed on a regularbasis (daily,
weekly, monthly -but not less. than once per ye r to erice dieck or repFace iIerri5tbt re not bikeii- Also
def in ed as work not performed bycontract that isnot regularlyscheduled,but isrequired tomaintain anasset
so that repaIrdoes not become necessary_
Prevaitrng Wages - The hourlywages, usual benefits, ando,rertkiic paid in the largest city in each CM ntyto the
majctrltyaf workers, laborers, and mechanics. Prevailing wages are established by theWashington ashirgton State
DepartmentofLabarandIndustriesforeaditradeandoccupatianernployedIntheperformanceofpublic
work_ Theyare established separatelyforeaeh county, and are reflective of local wage conditions
ProfesstarrrriServii -Services which provide profcssionalortechnicalexpertise toaccomplishaspecificstudy,
project task, or other workstaterrient, Examples include, but are not limited to:
• Architectural, engineering ordesign services
•
Accounting and auditing
• Bond orlrrsuranee brokerage
• Consulting services
• Legal services
Real estate appraisals or title abstracts
• Relocation assistance
• Surveying
■
Soils analysis or core testing
• Wate r quality rrranitaoring
Pubkrc Wank - A II work, construction. alteration, repair, or improvement other thanordinary maintenance,
exeecutad atthe cost of the City, or which Is by law a lienor charge on any prope rtytherein,
Quotation -A state merit of price,terms of sale, and description ofgoods arservices offered by a prospective
sellerto a prospective purchaser, usuallyfor purchases below the amount requiring formal bidding. For
professional servicecontracts,questeswouldtyplcallyincludethequaliricationsoftheprcnederandmayormay
not include pricing info rrna-tiondepending on the situation.
Request/orPropose REP) - All documents, whether attached orincorporatedbyreference, utilized 'for
soliciting competitive propasals. The RFP praxedure permits negatiation of proposals and prives,asdistinguished
from corn petitive bidding and a notice inviting bids, The procedure allowschanptesta be made. afterproposaIs
are opened and contemplatesthat the nature of the proposals and/or prices offered will be negotiated prior to
award.
RequestforQrrailf;ration (Ftn - A document gen erally used for obtaininga summairy of qualikatianfrom
prospective providers of professional services-
Resvonsifiie thacier- A person or legal entitywho has the capabllityin all respects to perform infuIIthe
contract requirements,and the integrity and re liability which will assure good faith performance.
Responsive Bidder - A person or legal entity who has s:ubmitteda bid conforrrnngin all materia l respectstothe
teams and conditions, specifFicationsandother requiremenb in arequest for bids.
Seated 8id-A bid which has been submitted Li asealed envelope to prevent its eontentsfram being revealed
before the deadline for the subrnissiorrof all bids.
194
( 52 )
5oieSorurce— An award for a purchase to theonlyreasonably known capable vendor clue to the unique nai,ure
Of the requirement, the vendor, dr market conditions.
Sprrerificatiarm -A description of what the pugchaaerseekstobuy oraccomplish — and consequently what a
bidder mast be responsive to Inordertobecons lderedforaward ofacontrast. Maybe a description of the
physical orfunctional& arractte istics, or the nature of a supply orservice, May also include a description of any
re qu irernentsfor inspecting, testing, or preparing a supply arse Nice item for delivery.
Surplus propvtly— Any tangible, personal property owned by the Citythat is no longer needed or usable,
pre sentlyor inthe f oreseeable futu re.
-� 53 j-
195
BOND RATING
54
196
RATING OVERVIEW
Tukwila's General Obligation (GO) bond rating acts as the City's credit rating and is a measure of the overall
financial stability of the City. In order to fund large capital projects, the City issues bonds, or debt, and the
purchase of those bonds provides the financing for these capital projects. The GO bond rating indicates how
safe of an investment the City's bonds are to potential purchasers. There are three main municipal bond rating
agencies: Moody's, Standard & Poor's, and Fitch.
Each rating agency has a proprietary methodology for assigning ratings to a municipality.
RATING SCALE
Investment
Grade
Moody's
5&P
Fitch
Meaning
Aaa
AAA
AAAA
Prime
Aal
AA+
AA+
High Grade
Aa2
1
1
Aa
AA-
Al
A+
A+
Upper Medium Grade
A2
A3
A -
Baal
BBB+
BBB+
Lower Medium Grade
Baa2
BBB
BBB
Baa3
BBB-
BBB -
Tukwila has a Limited General Obligation Bond rating of AA+ with Standard & Poor's.
55
197
Country Risk
Industry Risk
CRITERIA USED BY RATING AGENCIES
Bating an issue
In rating an individual deet ,s.sue, such as a corporate or municipal bond, S&P Global.
Ratings typically uses, among other things, information from the issuer and othe r
sources to evaluate the credit quality of the issue and the likelihood of default. In the
case of bonds issued by+corporations or municipalities, rating, agencies typically begin
with an evaluation of the creditworthiness of the issuer before assessing the credit
oualityr of a specific debt issue.
In analyzing debt issues, far example, S&P Global Ratings analysts evaluate, among
other thongs_
The terms and conditions of the debt security and, if relevant, its Legal structure_
The relative seniority of the issue with regard to the issuer's other debt issues and
priority of repayment in the event of default.
The existence of external support or credit enhancements, such as Letters of
credit, guarantees, insurance,, and collateral. These protections can provide a
cushion that Limits the potential credit risks associated with a particular issue.
Factors used for assessing S&P' Global Ratings corporate credit ratings
Competitive Position
Cash Flow/
Leverage
- Diversification/Portfolio effect
- Capital Structure
- Financial Policy
- Liquidity
- Management/Governance
- Comparable Ratings Analysis
Group or
Government
Influence
198
( 56 )
DEBT SERVICE SUMMARY
Existing LTGO Debt
SCORE Limited Tax, GO Bonds, Refunded 2019 (Moody's rating "Aa2" and S&P rating "AA+"):
Pay for portion of the construction costs of SCORE jail, a correctional facility, in partnership with
five other cities. Original issue amount $51,055,000 with $4,921,702 allocated to the City of
Tukwila. SCORE plans to pay the debt service on behalf of the owner cities, which includes
Tukwila. The debt has a 20 -year repayment schedule with interest rates ranging from 1.24% to
3.08% and is callable on December 1, 2029.
Limited Tax GO Bonds, 2011 (Moody's rating "Aa3"): Proceeds used for arterial street capital
projects. Original issue amount of $4,620,000. The debt has a 10 -year repayment schedule
with interest rates ranging from 3.95% to 4.65% and is callable on December 1, 2021.
Limited Tax GO Bonds, 2013 (private placement): Proceeds loaned to Tukwila Metropolitan Park
District (TMPD) to pay for improvements to Tukwila Pool. Debt is being paid back by the TMPD.
Original issue amount of $1,000,000 and has a 20 -year repayment schedule with interest rates
ranging from 1.75% to 4.00%.
Limited Tax GO Bonds, 2014 (private placement): Property purchased in the City's Tukwila
Redevelopment (Urban Renewal) area. Original issue amount of $3,850,000 and has a 20 -year
repayment schedule with interest rates ranging from 0.85% to 4.86%.
Limited Tax GO Bonds, 2015 (S&P rating "AA"): Funding for Interurban Avenue South and
Boeing Access Road Bridge projects. Interurban Avenue South consisted of designing and
constructing sidewalks, pavement restoration, as well as drainage and lighting work. Boeing
Access Road Bridge project rehabilitated the existing bridge with a 340' long concrete or steel
bridge structure. Original issue amount of $5,825,000. The debt has a 20 -year repayment
schedule with interest rates ranging from 2.25% to 3.00% and is callable on June 1, 2025.
Limited Tax GO Bonds, 2017 (S&P rating "AA"): Funding for 42nd Street and 53rd Street Sidewalk
projects. Original issue amount of $8,180,000. The debt has a 20 -year repayment schedule
with interest rates ranging from 3.00% to 3.50% and is callable on June 1, 2027.
Limited Tax GO Refunding Bonds, 2017 (private placement) : Funds used to purchase property
in the City's Urban Renewal area. Original issue amount of $2,276,000 with a balloon payment
due December 1, 2022. Interest rate ranges from 2.60% to 3.00%. Anticipated land sale
revenue will be utilized to repay this debt.
Limited Tax GO Bonds, 2018 (S&P rating "AA"): Funding to purchase land for the Public Works
Shops facility. This debt is part of the Public Safety Plan. Original issue amount of $18,365,000.
The debt has a 20 -year repayment schedule with interest rates ranging from 1.95% to 3.50%
and is callable on June 1, 2027. Anticipated land sale revenue will be utilized to repay a portion
of this debt.
57
199
Limited Tax GO Bonds, 2019 (S&P rating "AA"): Funding for Public Safety Plan projects including
the construction of a Justice Center, two fire stations, and PW Shops. Original issue amount of
$22,830,000. The debt has a 20 -year repayment schedule with interest rates ranging from
3.00% to 5.00% and is callable on June 1, 2029. Anticipated land sale revenue will be utilized
to repay a portion of this debt.
Limited Tax GO Refunding Bonds, 2020 (private placement) : Funding for Southcenter Parkway
and Howard Hansen Dam projects. Original issue amount of $1,995,000. Interest rate for the
life of the issue is 1.29%.
Existing UTGO Debt
Unlimited Tax GO Bonds, 2016 (S&P rating "AA"): Funding for Public Safety Plan projects
including the purchase of land and construction of a Justice Center and two fire stations. Original
issue amount of $32,990,000. The debt has a 20 -year repayment schedule with interest rates
ranging from 4.50% to 5.00% and has an optional redemption date of December 1, 2026.
Unlimited Tax GO Bonds, 2019 (S&P rating "AA"): Funding for Public Safety Plan projects
including the construction of a Justice Center and two fire stations. Original issue amount of
$37,770,000. The debt has a 20 -year repayment schedule with interest rates ranging from
3.00% to 5.00% and is callable on June 1, 2029. This issue is being repaid by an excess property
tax levy.
Existing Local Improvement District Debt
Local Improvement District #33, 2013 (S&P rating "BBB"): Funding to improve access to the
Southcenter area. Original issue amount of $6,687,500. The debt has a 20 -year repayment
schedule with interest rates ranging from 3.15% to 5375%. Debt is being repaid from
assessments on property within the LID #33 boundaries.
Planned Debt
Public Works Shop facility: Issue $2.85 million LTGO to finance general fund portion of Phase I
of the PW Shops master plan.
58
200
CENTRAL SQUARE ERP SYSTEM
59
201
Prim date: February 4, 2022
Finance Enterprise Coding Guide
City of Tukwila
Finance Enterprise Account String [Key -Object]
- Accounting Codes in Finance Enterprise are made up of two parts: the KEY and the OBJECT_
When writing out the account string, this is represented as KEY-OEiECT (separated with a hyphen).
- Keys and Objects are configured with multiple `background parts° that are used for reporting and grouping of
transactions_
- In the General Ledger these are called the GL Key and the GL Oblect code_
In theJob Ledger (replacement of project accounting) these are called the Job Key and Job Obiect code.
General Ledger Keys (GL Key)
Structure of the Standard EL Key
All revenue and expense activity, as well as transfer in{out, are required to use the Standard 61 Key When recording
transactions., The Standard Key is also referred to as the 'Long key'. These keys follow the structure outlined in the
image below:
A A 1.
Budget Group Code
2
3
Fund/Department
4
5 6
Division/Function
[c]
Capital
Flag
Budget Group Code: The first two digit of the Standard GL Key is the budget group. This is the top level rollup of all
funds related to a certain operational group in the City.
AS—Administrative Services
CD — Department of Community Developrr ent (DC DJ
CN — City Council
FD— Fire Department
FN — Finance Department
MC— Municipal Court
MR— Mayor's Office
PD — Police Department
PR — Parks & Recreation
PW — Public Works
DS — Debt Service
GW — Government Wide
Fund/Department: Digits 3 through 5 of the Standard key identifies the Fund and Department of the Key.
Page 1 of 2i
202
( 60 )
Prat date: February 4, 2022
General Fund department will have a zero {0) in that first digit, followed by the two digit department code {ex_ 005 =
General Fund, Finance Department]_
For all other funds the fund number will be used in these three digits {ex_ 412 = Surface Water fund).
Division/Function:
The last three digits cif the Standard Key identifies the unique division and/or function for that particular
fund/department_ This segment, in conjunction with the prior three digits, identifies the
Fund/Department/Division/Function of the activity.
Capital Flag:
When coding a capital expenditure purchase for a particular key, simply add a "C' to the end of your ordinary key_
- Example: ordinary key H4005100 => capital expenditure key FN005100C
Fund Keys
Another Key available in the system is the 'short' Fund Key. This is the same as the fund codes from Eden but is only
available to be used with balance sheet accounts. When activity such as AP invoices or accounts receivable is entered in
the system using the Standard 'long GL Key, it will settle using the associated Fund Key.
■ The one exception is fund 109, Drug Seizure Fund, which settles at the ' gr' key level (for cash, payables, receiaobles, etc.)
due to the hacking/reporting regruiremera c of this sped revenue fund.
Department Keys
General Fund, Non -Departmental
GF000100 — General Fund Non -Departmental
- This Key is used primarily for general revenues (property tax, sales tax, etc_) and can also be used fortransfers
intout that are not related to capital or debt service transfers_
GF000200 — General Fund Debt Service Transfers
- This Key is used for General fund transfers out to debt service funds.
GF00030O— General Fund Capital Transfers
- This key is used for capital transfer infaut of the General Fund_
City Council
CNO01100 — Gty Council Administration
- Corresponds to Eden GL's 000.01.511.600. vc_xx
Mayor's Office
MR003100— Mayor's Office Administration
- Corresponds to Eden GL's 000.03.513.104_xx_xx
MR003500— Public Defense (Mayor's Office)
- Corresponds to Eden GL's 000.03.512.500exx_xx
Page 2 of 21
( 61 )
203
Pit date: February 4 2022
- Part of the Mayor's Office Administration division
MR003700 — Economic Development
- Corresponds to Eden GL's 000.03.55&.700_xx_xx
MR003900 — Mayor's Office Community Promotion
- Corresponds to Eden GL's 000.03.573.900_xx_ c
- Part of the Mayor's Office Administration division
MR003006 — City Atto rn eyr Services
- Corresponds to Eden GL's 000.06.515.300_xx_xx
Other Mayor's Office Keys (other funds)
M 8101300 — Tourism Basic Operations
- Corresponds to Eden GL's 101.00.557.300_xo
- Hotel/Motel tax and other fund 101 revenue should be recorded under this key as well_
MR101301 —Tourism Joint Operations
- Corresponds to Eden GL's 101.00.557.301_xx_xx
MR101302 — Tourism Tukwila
- Corresponds to Eden GL's 101.00.557.302xx_xx
MR302300 — Facility Repair projects
- Corresponds to Eden GL's 302.98_559.300_xx_xx
- Transfers i nlout of fund 302 should use this key
- Revenues for fund 302 should use this key
- Adding a t to the key (MR302300C) corresponds to 302.9&_594.180.xx_xx and 302.98.594.190.xx.xx
Administrative Services
A5004100 — Department Ad m i n istration
- Corresponds to Eden GL's 000.04.518.9000
AS004110 — Human Resources Administration
- Corresponds to Eden GL's 000.04.518.100.xx_xx
AS004120 — Human Resources Civil Service (part of HR division)
- Corresponds to Eden GL's 000.04.518.110_xx_xx
AS004201 — Community Services & Engagement
- Corresponds to Eden GL's 000.04.557.201xx. c
- Affordable housing tax revenue (Eden GL 000,313.270.00.00) is recorded to this key (GL Obj 313270)
AS004210 — Minor Home Repair (part of Community Services & Engagement division)
- Corresponds to Eden GL 000.04.557.202xx_ o
- HUD Minor Horne Repair Grant revenue (Eden GL 000.333.142.18.00) is recoded to this key (GL Obj 333142)
Page 3 of 21
204
( 62 )
Print date: February 4, 2022
ASO04300 — City Clerk Administration
- Corresponds to Eden GL's 000.04.514.300. xx_xx
AS004900 —Voter Registration (part of City Clerk division)
- Corresponds to Eden GL's 00O.04.514.900_xx_rc
AS004012 —Technology & Innovation Services (TIS)
- Eden GL's 000.04.518.880_xnc_xoc
Other Administrative Services Keys (other funds)
AS305180— Public Safety Plan General Government
- Used for general revenues and transfers not specific to one project
AS305210C — Public Safety Plan -Justice Center
Eden GL 305.98.594.210_xocaoc
Revenue & Non -capital expenses should use same key minus the capital flag (AS305210)
AS305220C— Public Safety Plan -Fre Stations & Equipment
- Eden GL 305e98.594.220.xoc.xo4
- Revenue & Non -capital expenses should use regular key; remove the capital flag (AS305220)
AS306750 —Teen/Senior Intergenerational Center Project — Non -Capital
- Used for costs associated with the Intergenerational Center project that are not Capital expenses.
- Revenues specific to the Intergenerational Center Project
AS31J6750C—Teen/Senior Intergenerational Center Project—Capital
- Corresponds to Eden GL's 306.98.594.750_xoc_xx
Boards & Corr n'issions
AS004203 — Equity & Social Justice Commission
- corres ponds to Eden GL's 00O.04.513.203.xx.xx
- Prior to 2021 this was Eden GL O00.03.513.203xoc_ux
Finance Department
FNO05100 — Finance Department Administration
Corresponds to Eden GL's 00O.05.514.230_xoc_x:x
Adding a 'C' to the key (FN005100C) corresponds to 000.05.594.180_xac_xoc
Other Finance Keys (other funds)
FN105100 — Contingency Fund
- Used kr revenues/expenses &Transfers inloutoffund 105
FN502370 — Claim Processing
Corresponds to Eden GL's 502.0O.517.370_xoc_xcc
Contributions to fund 502 as well as general revenues are recorded to this Key_
FN502900 —Wellness Program
- Corresponds to Eden GL's 502.00.517.90O.xxc.m
FN503200 — LEOFF 1 Retirees
- Corresponds to Eden GL's 503.00.517.200_xflc_xoc
Page 4 of 21
( 63 )
205
Print date.: February 4, 2022
- Contributions to fund 503 as well as general revenues are recorded to this Key.
FN61120O — Firemen's Pension Fund
- Used for revenues/expenses in Fund 611
FN64010O — City Custodial Funds
- Used for revenues/expenses in Fund 640
- Most fund 640 activity will be balance sheet only and use the Fund Key 640 instead_
FN64110O — Non -City Funds
Used for revenues/expenses in Fund 641
Fund 641 is a non -city asset fund; Spirit of Giving is the primary program recorded to this fund_
Most fund 641 activity will be balance sheet only and use the Fund Key 641 instead_
Parks & Recreation Department
PRO07100— Recreation Department Administration
- Corresponds to Eden GL's 000.07.571.100_xx_ c
PR007200— Recreation Program Administration (Eden O00.07.571.200.xx_xx)
PRO07201—Preschool Program (Eden 00O_07571.201xxx0
PROO72O2 — Youth Progm rns { Eden 000.07.571.202.xx.)x)
PRO07203—Teen Programs (Eden 000.07.571.203.)cx.xx)
PRO07204—Youth Free Services (Eden 000.07.571.2064_xx_ c )
PRO07205 — Wellness & Enrichment (Eden 0O0.07.571.2O6_m xx)
P RO07207 — Senior Adult Programs ( Eden 000.07.571.207_)x.xx)
PR0072O8 — Senior Free Services {Eden 000.07.571208_)c .xx)
PRO07210 — Community Event & Volunteers (Eden 00O.07.571.210.xxxx)
PRO07211— Planning & Business Operations (discontinued 2020) (Eden 0O0.07.571211_xxm)
PRO07212 — Rental Operations (Eden 0O0.07.571.212_xx.xx)
PR0158O0—Park Maintenance (Eden 000.15.576.800.u.0
PR0158O2 — Park Maintenance Garbage Cleanup
- New key for Park Maintenance to account for costs related to garbage cleanup at parks
PR0158O5—Park Facilities
- New key for Park Maintenance to account for costs related to Park Facilities
P R015810 — Parks Maintenance -Green Tukwila
- New key for Park Maintenance to account for costs related to Green Tukwila
Boards & Cornniissi ors
PROO7001— Library Advisory Board
- Corres ponds to Eden GL's 0O0.07.572..210_xx_xx
- Prior to 2021 this was GL 000.O3_572.210_xx_xx
P R0070O2 — Art Commission
- Corresponds to Eden GL's 00O.07.573.200_xx_ c
Prior to 2021 this was GL O00.03.573.20O_xx_xx
PR015801— Park Commission
- Corresponds to Eden GL's 00O.15.576.801_xx_xx
Page 5 of 21
206
( 64 )
Print dote: February 4, 2022
- Contributions to fund 503 as well as general revenues are recorded to this Key.
FN611200 — Firemen's Pension Fund
- Used for revenues/expenses in Fund 611
FN640100— City Custodial Funds
Used for revenues/expenses in Fund 640
Most fund 640 activity will be balance sheet only and use the Fund Key 640 instead.
FN641100 — Non -City Funds
Used for revenues/expenses in Fund 641
Fund 641 is a non -city asset fund; .Spirit of Giving is the prin-ary program recorded to this fund_
Most fund 641 activity MI be balance sheet only and use the Fund Key 641 instead_
Parks & Recreation Department
PR007100 — Recreation Department Administration
- Corresponds to Eden GL's 000.07.571.100_xx_ c
PR007200 — Recreation Program Administration (Eden 000.07.571.200.xx.)x)
PR007201 — Preschool Program (Eden 000_07.571.2O1xx_xx)
PR007202 —Youth Programs ( Eden 0{10.07.571.202_xx.)o)
PR007203—Teen Programs (Eden 000,07,571.203xx.xx)
PR007204—Youth Free Services (Eden 000.07.571,204_xx.xx)
PR007206 — Wel l mess & Enrichment {Eden 000.07.571.206_xx_xx}
PR007207— Senior Adult Programs (Eden 000.07.571.207.xxxx)
PR007208 — Senior Free Services (Eden 000.07.571.200_xx.xx)
PR007210—Community Events & Volunteers (Eden 000.07571.210.xxxx)
PR007211 — Planning & Business Operations (discontinued 2020) {Eden O00.07.571.211_xx.xx}
PR007212 — Rental Operations (Eden 000.07.571.212_xx.xx)
PR015800—Park Maintenance (Eden 000.15.576.800_xxxx)
PR015802—Park Maintenance Garbage Cleanup
- New key for Park Maintenance to account for costs related to garbage cleanup at parks
PR015805 — Park Facilities
- New key for Park Maintenance to account for costs related to Park Facilities
P RO15810 — Parks Maintenance -Green Tukwila
- New key for Park Maintenance to account for costs related to Green Tukwila
Boards & Commissions
P R007001 — Library Advisory Board
Corresponds to Eden GL's 000.07.572.210.>o .xx
- Priorto2021this was GL000.03.572a210_o c
PR007002 — Art Commission
- Corresponds to Eden GL's 000.07.573.200_xx_xx
- Prior to 2021 this was GL 100.03.573.200_xx_xx
PRO15801 — Park Commission
- Corresponds to Eden GL's 000.15.576.801_xx_ c
Page 5 of 21
( 65 )
207
Print date: February 4, 2022
- Prior to 2021 this was GL 000.03.576.800_rot_ c
Other Parks & Recreation Keys •[other funds)
PR301800 — Land Acquisition, Parks Maintenance
- Eden GL 301.918.576.800. xx.xx
- With the exception of the 1% arts transfer, Fund 301 revenues and transfers should use this key.
PR301S01— Land Acq Fund Arts
- Eden GL 301.98.576.9OO_r®c_xx
Transfers In for 1% Arts is recorded to this key_
PR541100 — Non -City Funds
Used for revenues/expenses in Fund 641
Fund 641 is a non -city asset fund; Spirit of Giving is the primary program recorded to this fund.
Most fund 641 activity will be balance sheet only and use the 'short' Fund Key 641 instead.
Foster Golf Course
PR411680 — Golf Operations
Eden GL 411.00.576.680_xmoc for costs related to Golf Course Operations_
Greens fees, equipment rental and other course related revenues are recorded to this Key.
PR411680C — Golf Course Capital Improvements
- Eden GL 411.00.594.760_rax_xx
For Golf Course Capital improvements_
PR411681 — Golf Course Pro -Shop
- Eden GL 411_OO.576.681_roc_xx
- Pro Shop rnerchandise
PR411682 — Golf Carts
- New key for GoIf Course to track
PR411683 — Goff Equipment
- New key for Golf Course to track
PR411684 — Golf Course Irrigation
- New key for Golf Course to track
costs related to Darts
costs related to Golf Equipment
oasts related to Irrigation systems
Department of Community Development
CDOO8100— Dept of Community Development Administration (Eden 000.05_558.710xx_Kc
CD00B200 — Planning (Eden 000.08.558.6O0.ao¢xx)
CD008300 — Code Enforcement (Eden 000.O48.524.600_xx.xx)
CD008500 — Permit Coordination (Eden 000.O8_55S.50O_rac_xx}
CD008501 — Building Division (Eden 000.08.555.501_)o_xx)
CD008900 — Recycling Program (Eden 000.08.554.9003oc.xx)
CD008910 — TOM Program {Eden 00 i08_554.g10_xx_ c
Boards & Commissions
CD008201 — Planning Commission
Corresponds to Eden GL's. 00O.08.558.606_rflc_xx
- Prior to 2021 this was Eden GL O00.03.558.600xx_n
Page 6of21
208
( 66 )
Print date.: February 4, 2022
Municipal Court
MC009100—Municipal Court, dITinistratian (Eden 000.09.512.500.xx.xx)
MC009300— Municipal Court Probation (Eden 000.09.523.300.)x.xx)
Police Department
PD010100 — Police Department Administration (Eden 000.10.521.100_xx_xx)
PD010600 —Police Emergency Management ( part of Administration Division)
P0010210—Police Investigations (Eden 000_10_521.210.nm)
)
P0010220—Police Patrol Division (Eden 000.1032.1.2220_)xooc)
P0010230 —Police Support Operations (Eden 000.10.521.230_xx_xx)
P0010240—Police Dispatch Services (Eden 000.10.521.240 )3‹.)a) (part of Traffic Division)
P0010250 —Tukwila Anti -Crime (Eden 000.10.521.250.xx_xx)
PD010260 —Police Special Operations (Eden 000.10.521.260xx.0
P0010300—Police Professional Standards (Eden 000.10.521.300m.m)
)
P0010301—Animal Control {Eden 000_10.554.300_xx.xx) (part of Patrol Division)
P0010400 —Police Training ( Eden 000.10.521.400_xx.xx)
P0010500 —Police Facilities (Eden 000.10.5213003xx_acx) (part of Administration Division)
P0010601— Monitoring of Prisoners. (Eden 000.10.523.220_)x_ c) (part of Patrol Division)
P0010602 — SCORE Jail (Eden 000.10.523.600.xx_r () (part of Patrol Division)
PD010700 —Traffic Division (Eden 000.10.521.700_ oc)c )
Other Police Dept Keys (other funds).
The Drug Seizure fund (Fund 109) consists of two parts, State funds and Federal Funds. Fund 109 has been configured to
settle balance sheet as well as Revenue & Expenses .atthe Key level. This will allow state & federal funds to be
separately identified in the GL for all object codes.
P0109001—Drug Seizure —State (Eden GL's 109.00.521.250_xx_xx)
P0109002—Drug Seizure — Federal (Eden GL's 109_00.521.251_xx_xx)
Page 7 of 21
( 67 r
209
Print dare: February 4, 2022
Fire Department
FD011100 — Fire Department Administration (Eden GL's 000.11.522.100.xx.xx)
FD011200— Fire Suppression General (Eden GL's 000.11.522.20O_rxic
FD011201 — Fire Suppression A Shift (Eden GL's 000.11.522.201_xx_xx) Part of the Fire Sup -pression division
FD011202 — Fire Suppression 6 Shift (Eden GL's 000.11.522.202xx_xx) Part of the Fire Suppression division
FD011203 — Fire Suppression C Shift (Eden GL's 0O0.11.522.203.)xxxj Part of the Fire Suppression division
FD011204 — Fire Suppression D Shift (Eden GL's 0O0.11.522.2004,xxi x) Part of the Fire Suppression division
FD011230 — Fire Rescue & Emergency Aid (Eden GL's 000.11.522.208.xxxx and 0O0.11.522.230.xx.xx)
FD011260 — Fire Special Operations (Eden GL's 000.11.522.202_xx_xx-for supplies/services only)
FD011300— Fire Prevention &investigation (Eden GL's 000.11.522.300_ c .xx)
FD011410 — Fire Training (Eden GL's 000.11.522.410.)xxx)
FDO11500— Fire Facilities General
This key is used to account for gen eraI fire facilities costs that are not directly related to one of the four fire
stations; or for shared fire facilities costs that relate to all stations_
Corresponds to Eden GL's 000.11.522.500_xx_xx
FD011551— Fire Station 51
- This key is used for Facility costs related to FS 51
- Corresponds to Eden GL's 00a11.522 501_xx_xx with FS 51 in the account description
FD011552 — Fire Station 52
- This key is used for Facility costs related to FS 52
- Corresponds to Eden GL's 000.11.522.500_ror_xx with FS 52 in the account description
FD011553 — Fire Station 53
This key is used for Facility costs related to FS 53
Corresponds to Eden GL's 000.11.522.500.*Ln with FS 53 in the account description
FD011554 — Fire Station 54
- This key is used for Facility costs related to FS 54
- Corresponds to Eden GL's 000.11.522.501ro_xx with FS 54 in the account description
FDO11600 — Fire Emergency Management (Eden codes 000.11.525.6OO.xx.xx)
- Emergency Management was moved to the Police Department starting in 2021
Other Fire Department Funds
FD304100 — Fire Improvement
- Used for any revenues, expenses, ortransfers in/out of fund 304
FD305220— Public Safety Plan, Fire Equipment (Eden GL 305.98.522.220.)o.xx}
- Used for Public Safety Plan Fire Equipment purchases
Page 8 of 21
210
( 68 )
Print date: February 4, 2022
Public Works Department
General Fund Public Works Keys
PW013100 — Public Works Department Administration (Eden GL000.13.543.100_aa_xx)
PW013101 — Maintenance Administration (Eden GL 000E 13.543.101_xx xx)
PW013102 — Development Services (Eden GL 000.13.543.102_xx_xx)
PW013130 — Engineering Division (Eden GL O00_13.543.130_)cu
PW013300 — Facilities Maintenance (Eden GL 000_13.518.300_xx_xx)
General Fund Street Maintenance Key's
Street Maintenance keys follow a similar structure to the Residential & Arterial Street codes (on the following page).
These keys are all within the Street Maintenance Division, but each one designates the specific Street activity that is
being done_ Activities related to Street Maintenance are not typically Capital iterns since these activities are only
maintaining the existing asset for continued use_ Expenditures that are capital should use the Capital Flag{adding the
"C' to the end of the key) lithe capital key isn't available, please request Finance set it up.
PW016100 — Street Maintenance Department Administration (Eden 000.16.542.900xx_304)
PW016200 Street MaintGeneral Services (Eden 000.16.543.300.)oxx)
PW016300 — Roadway ( Eden 0+00.16.542.300.xxxx)
PW 016500 — Street M ai nt Structures (Eden 000.16.542.500.Ecxx)
PW016610 Sidewalks (Eden 000.16.542.610_rot_sce)
PW016630 —Street Lighting (Eden 000.16.542.630_xx_xx)
PW016640 —Traffic Control Devices (Eden 000.16.542.640.)oxx)
PW016660 — Snow & Ice Control (Eden 001116.542.660xx_xx)
PW016670 — Street Cleaning (Eden 000.16.542.670xx_xx)
PW016700 — Roadside Maintenance (Eden 000.16.542.700.xxxx)
PW016800 — Street Maint Video & Fiber (Eden 000.16.542.800.xxxx)
Street Maint, Residential &Arterial Streets
PW 016
PW 103
PW 104
100 Administration
200 Engineering/General Services
300 Roadway
400 Construction Projects
500 Structures
610 Sidewalks
630 Street Lighting
640 Traffic Control Devices
660 Snow 8t Ice Control
670 Street Cleaning
700 Roadside
S00 Video Fiber&Otheroperations
Page 9 of 21
( 69
211
Print date: February 4, 2022
Street Fund Keys
Keys in funds 103 and 104 follow the same pattern as the General Fund Streets Maintenance keys.
Fund 103 keys begin with PW103xxx and fund 104 begins PW104x3ox In the chart below, the final 3 digits for both funds
use these codes. Activities that are Capital in nature would add a "C" to the end of the key which corresponds to Eden
codes xxx..98.595_xxx.xx.xx_ Capital expenses are defined as activities that are either creating/building a new asset or
significantly improving an existing asset which modifies or upgrades its use. Activities that only maintain assets at their
current use would omit the "C" from the end of the Key_
Street Maint, Residential &Arterial Streets
PW 016
PW 103
PW 104
100
200
300
400
500
610
630
640
660
670
700
8[.10
Administration
Engineering/General Services
Roadway
Construction Projects
Structures
Sidewalks
Street Lighting
Traffic Control Devices
Snow& Ice Control
Street Cleaning
Roadside
Video, Fiber &.OtherOperations
PW103100— Residential Streets Administration (Eden 103.98.542.100.m.m)
)
PW103200— Residential Streets Engineering (Eden 103.98.544.200_1ox.xx)
PW103300— Residential Streets Roadway (Eden 103.9g.542.300.xx.xx)
PW103610— Residential Streets Sidewalks (Eden 103.98.542.610xx_xx)
PW103630— Residential Streets Street Lighting (Eden 103.98542:6317_xx.xx)
PW103640 — Res Streets Traffic Control Devices (Eden 103.98542.640.xx.lac)
PW103700— Residential Streets Roadside (Eden 103.98.542.700.xx.xx)
PW 1041+70 — Arterial
PW 1042170 — Arterial
PW104300 — Arterial
PW104400— Arterial
PW104500 — Arterial
PW 104610 — Arterial
RW104630 — Arterial
PW 104540 — Arterial
PW 104660 — Arterial
PW104700— Arterial
PW104300 — Arterial
Page 10of21
Streets Administration (Eden 104.58.542.100_xx_xx)
Streets Engineering (Eden 104.98.544.200_xx_ c )
Streets Roadway (Eden 104.98_542.300_x .xx)
Streets Construction Projects (Eden 1042518.542.400xx_xx)
Streets Structures {Eden 104.9,8.542.500_)o_xx)
Streets Sidewalks (Eden 104.98.542.610.xx)
Street Street Lighting (Eden 104.98.542.630.xx.aos)
Street Traffic Control Devices (Eden 104.98.542.640.xx.xx)
Street Snow & Ice Control (Eden 104.98.542.660xx_xx)
Street Roadside (Eden 104.98.542.700_ c .xx)
Street Ancillary Operations (Eden 104.98.542.800.xxxx)
212
( 70 )
Print date: February 4, 2022
Constriction Fund Keys
Construction fund keys can be set up for specific project, such as the New Consolidated PW Shops, or a general key for
costs not specific to a certain project
Activities that are Capital in nature (defined in previous page would include a "C"" at the end of the key. Revenue and
non -capital expenses would use the standard Key without the "C" at the end_
Retainage would use the Fund GL Key with Object 223400 (ex. 306-223400)
PW303300 General Government Facilities Maintenance
- Corresponds to Eden GL's 303.98.518.300.aa_xx and any revenues GL's in fund 303_
PW303180C— General Government Capital Projects (Eden GL's 303.98.594.180_ c .xx)
FD305220— Public Safety Plan, Fire Equipment (Eden GL 305.98.522.220_1cx_xx)
- Used for Public Safety Plan Fire Equipment purchases
AS305180 — Public Safety Plan General Government
- Used for general revenues and transfers not specific to one project
AS305210C—Public Safety Plan -Justice Center (Eden GL_3O5.98.594.210_xx_n)
- Revenue & Non -capital expenses should use same key minus the capital flag (AS305210)
AS305220C— Public Safety Plan -Fre Stations & Equipment (Eden GL 305.98.594.220.xx.xx)
- Revenue & Non -capital expenses should use regular key; remove the capital flag (AS305220)
AS306750 —Teen/Senior Intergenerational Center Project — Non -Capital
Used for costs associated with the Intergenerational Center project that are not Capital expenses_
Revenues specific to the Intergenerational Center Project.
AS306750C—Teen/Senior Intergenerational Center Project—Capital (Eden GL's 306.98.594.750_)cxxxj
PW306100 — New City Facilities Fund
- This is the general key for fund 306, for activities not specificto a project or general revenues_
PW306180—PW Minkler Building In provernent Project— Non -Capital
- Used for costs associated with the Minkler Building Improvements project that are not Capital expenses_
- Revenues specific to the Minkler Building Project_
PW306180C— PW Minkler Building Improvement Project—Capital
- Corresponds to Eden GL's 306.98.594.480.xx_xx associated with the Minkler Project
PW306480 — Public Works Consolidated Shops Project— Non -Capital
Used for costs associated with the Consolidated PW Shops project that are not Capital expenses.
Revenues specific to the Consolidated PW Shops Project_
PW306480C— Public Works Consolidated Shops Project — Capital
- Corresponds to Eden GL's 306.98.594.480_xx_xx and associated with the PW Shops Project_
AS306750 —Teen/Senior Intergenerational Center Project — Non -Capital
Used for costs associated with the Intergenerational Center project that are not Capital expenses_
Revenues specific to the I ntergenerationa I Center Project.
AS306750C —Teen/Senior Intergenerational Center Project — Capital
- Corresponds to Eden GL's 306.98.594.750_xx_ c
Page 11. of 21
( 71
213
Print dare: February4, 2022
Utility Fund Keys
Water Fund
PW401800—Water Operations (Eden 4O1.O1.534.80O_xx_xx)
PW401801 — Water Engineering (Eden 401.O1.534.8O1.)xxx)
PW4O18O1C— Water Capital Improvements (Eden 401.98.594.340_xx.xx)
Sewer Fund
PW4O28O0 Sewer Operations (Eden 402_01.535.8O0.xxxx(
PW402801 —Sewer Engineering (Eden 402.01.535.8O1_xx_xx)
PW4O2801C— Sewer Capital Improvements (Eden 402.98.594.353_xx_xx)
Surface Water Management Fund
PW412330 --Surface Water Operations (Eden 412.O1.538.38O.xx.xx(
PW412301—Surface Water Engineering (Eden 412.O1.538.3O1.xx_xx)
PW41230 1C — Surface Water Cap ita l Improvements (Eden 412.98594.382 xxxx}
Fleet Management
P'iV501650 — Fleet Operations (Eden 5O1.O1.548.65O_xx_x4
- Contributions from other Funds,'Depts for O&M are recorded under this key (Eden 501.348.300.00.00)
PW5O1650C— Fleet Operation Capital (Eden 5O1.O1.594.48O_xxxx(
PW5O16510— Fleet Replacement Capital (Eden 5O1.02_594.48O_xcxx)
- Fleet replacement funding contributions are also recorded under this Key. (Eden 501.348.301.00.00)
Page 12 of 21
214
� 72 )
Print &rte:: February 4, 2022
Debt Service Keys
Government Funds Debt Service
Debt service keys use the debt issue name as the key (LTGOxxxx, UTGDoac, 11033, LOC2017). These keys are used to
account for the debt service payments as well as the debt service transfers in from the General Fund
General keys are also available for fund 200 (DS200100), fund 213 (03213100) and the UD guarantee fund 206
(DS206100)_ These keys are used to account for other activities within a fund that are not transfers or payments_ Fund
213 for example, the excess property tax revenue uses key DS213100 because the funds are used for both the 2016 &
2019 UTGO bond issues.
DS2001000 — Debt Service Fund 200
LTGO2O14 — LTGO 2014 Bond (Fund 200) (Refunded 2021)
LTG02015 — LTGO 2015 Bond (Fund 200)
1002017— LOC 2017 debt (Fund 200)
D5206100— LID Guarantee (Fund 206)
LTGO2018 — LTGO 2018 Bond (Fund 208)
LTG02017 — LTGO 2017 Bond (Fund 209)
LTG02008 — LTGO 2008 Bond (Fund 211)
LTG02009 — LTGO 2019 SCORE ref of 2009 (Fund 212)
D5213100 — UTGO Bond Debt Service Fund 213
UTG02016 — UTGO Bond 2016 (Fund 213)
UTG02019 — UTGO Bond 2019 (Fund 213)
LTG02010 — LTGO 2010 (Fund 214) (refunded 2020)
LTGO2011— LTGO 2011 (Fund 217) (refunded 2021)
LTG02013 — LTGO 2013 (Fund 218)
LTG02019 — LTGO 2019 (Fund 219)
LTGO2020 — LTGO 2020 ref of 2010 (Fund 220)
LTG02021— LTGO 2021.A -B -C (Fund 221)
LID33 — Local Improvement District 433 Bond Debt (Fund 233)
Utility Funds Debt Service
utility fund debt service keys are similar to the Government funds debt service. Keys are used to account for the
payments made for each debt PWTFL's use specific GL object codes to delineate between the multiple trust fund loans.
PWTFL401— PW Trust Fund Loan Water Fund (401)
PWTFL402— PW Trust Fund Loan Sewer Fund (402)
PWTFL412— PW Trust Fund Loan Surface Water Fund (412)
REV15SWM — 2015 Revenue Bond Surface Water Fund (412)
REV15SWR — 2015 Revenue Bond Sewer Fund (402)
REV15WTR-2015 Revenue Bond Water Fund (401)
Page 13 of 21
( 73 )
215
Print date: February 4, 2022
Government Wide Keys
These Keys are used specifically by Finance for year end reporting purposes_ Keys are used for revenues/expenses in
funds 800, 850 and 900_
GW800100 — General Government Assets
GW850100 — Govern rrant Wide Entries
GW900100 — General Government Debt Accounts
Page 14 of 21
216
74 1
Print date: February 4, 2022
General Ledger Object Codes
General Ledger Dbject codes are six digits in length and identify all activities of the City_ These .are also referred to as the
GI account codes. The first digit of the code identifies the type of accourrt. Account types are listed below, with
additional details in the following sections_
1xxxxx = Assets (balance sheet account)
2x000 = Liabilities & Fund balance (balance sheet account)
- 3xxxxx=Revenues
5xxxxx = Expenditures/Expenses
7xp000c = Transfers In/Out
Balance Sheet Accounts
Balance Sheet GL account migrated over from Eden using the sarne codes from Eden_ As mentioned earlier, balance
sheet account use the 'short' Fund Key which is the same three digit fund code from Eden. Eden balance sheet GL's
consisted of a total of 9 digits with the first three as the fund and the next six are the account code. This holds true in
the new system, where those last six digits become the GL Object code for balance sheet accounts_
Ex_ Eden Code xxx_223.400 (Retainage) becomes xxx-22340t]
xxx_122_100 {Accounts Receivable] becomes xxx-122100
Revenues
For the most part, revenue GL's will have similarities to their Eden GL code counterpart. The outline below provides the
structure and organization of the Revenue GL accounts. When identifying the appropriate revenue GL object code in
Finance Enterprise, utilize this structure to ensure you're looking in the appropriate group_ Additional Revenue GL
object codes can be created if necessary_
Tax Revenues— Dbject codes 31)coc
311xxx — Property Tax
- 313xxx — Sales & Use Taxes
316xxx— Business &Utility Taxes
- 317xxx — Excise Taxes
- 318xxx — Other Taxes
Business Licenses. Permits and other Fees — Object codes 32xxxx
- 321 o x — Business Licenses & Permits
322xxx— Non -Business Licenses, permits and fees
Grants and other shared revenues — Object codes 33xxxx
- 331xxx— Federal Direct Grants
- 332xxx— Federal Revenues
- 333xxx— Federal Indirect Grants
- 334xxx—State Grants
- 335xxx—State Shared Revenues
- 336xxx — Other State Revenues
- 337xxx— Local Grants and other Revenues.
Charges for Services — Object code= 34xxax
Page 15 of 21
75 )
217
341xxx—General Government Charges for Services
342.00x— Public Safety Charges for Services
343x00 — Utilities charges for services
3440x0 — Transportation charges for services
345x30— Natural & Economic Environment charges for services
347>ocx — Culture & Recreation charges for services
348)x0— Internal Service Fund charges for services
Fines and Pen aIties —Object codes 35 oxo
352xxx — Civil Penalties
3530x0 —Civil Infraction Penalties
354xxx—Civil Parking Penalties
3550x0—Grin final Traffic Misdemeanor fees
356xxx—Criminal Non -Traffic Fines
357000—CriminaI Costs
359xxx Non -Court fines and penalties.
Other Revenues — Object codes 36xxxx
35100x— Interest and Other Investment earnings
362socx — Rents and Leases
36700x—Contributions & Donations, Non-government sources
3680x0 — Special Assessme nts
369(0x—Other Miscellaneous Revenues
Other Sources — Object codes 3700x0 thru 39xxx0
3740x0—Capital Contributions-State/Local
37500x—Capital Contributions -Indirect
379xxx—Capital Contributions -Other
3S1xxx—Other Increases in fund resources
3890x0 — Custodial fund received
39Qxxx—Other Financing Sources
39100x— Proceeds from Bonds Issued
392(x0— Premiums on Bonds Issued
395(0x— Disposal of Capital assets
3980x(— Insurance Recoveries
Page 16 of 21
218
( 76 )
Pirint date: February 4, 2022
Print date: February 4, 2022
Expenditures /Expenses
Salaries & Benefits
Salary & Benefit costs will follow the same structure of the Eden GL's, using the Eden object/sub-object section (last 4
digits)_ Below are the main categories for salaries & benefit GL`s_
511000 —Salaries (Eden codes xr1(_xx_xr1(.opc_11_00)
512000 — Extra Labor (Eden codes 1(_xx_xxx_ o x.12.00)
513000 — Overtime (Eden codes xr1(_ra_xxx_r1(x.13.0O)
513001— Overtime Holiday Pay (Eden rode xx(_xx_xxx_so(x.13.01)
513002 — Dye rtim e -Contracted {Eden code xxx.xx_)xx_xxx_13.02)
515000—Holiday Pay (Eden code CO€xx_rl0C.x30{_15.00)
521000 — FICA ( Eden codes raxxxsloc.xxx.21.00)
522000 — LEOFF (Eden codes x:a_xx.xrl(_rooc_22.00)
522002 — LEOFF Contracted (Eden codes r1(x.xxxxx_xxx.22.02}
523000 — PERS (Eden codes xxx_ra_xxx_xxx_23.00)
523001— PSE RS (Eden codes xxx_)1(_r xxxxx.23_01}
524000 — Industrial Insurance (Eden codes )1(x.xxxxx_xroc_24.00}
524050 — Paid Family & Medical Leave Premiums (Eden codes _xx_x,o xx_24.50)
525000 — Medical, Dental, Life & Optical (Eden codes xxx_xx.xra(_xxx_25_00)
525097—Self-Insured Medical & Dental (Eden codes xxx.xx_xc ioo(_25.97)
525099 — Retirees Self-insured Medical & Dental (Eden codes rlcx.xxxxx.xra_25.99)
Supplies & Services
Object Codes for Supplies & Services have been reworked to provide cleared locations for certain expenses_ While in the
past the su b -object code (last two digits) was utilized for additional sub -accounts;; these were not consistent across
funds or between departments_ These expense codes will be the same regardless of which GL Key is used with them.
The list below is the 'base level' groups contained in the General Ledger (first 3 digits of Obj code). Additional detailed
level GL's exist for all of these groups, which provide specific locations for certain types of expenses_ Judgement should
be used to select the appropriate GL object code (or contact Aaron in Finance for assistance).
Supplies — Object codes correlate to Eden codes r1(x.xxxxx.xx(_3x_xx
Sup -plies are items purchased for consumption or resale as well as small tools and equipment that does not meet the
capitalization threshold.
531xxx — Office & Operating Supplies
532xxx — Repairs & Maintenance Supplies
534xxx — Resale Supplies
535m — Small Tools & Minor Equipment
536x)1( —Technology Supplies
537x)1( — Fleet Supplies
539xxx — Water/Sewer Supplies (Utility Funds)
Services — Object codes correlate to Eden codes )xx_xx.xxx_xo:.4x.ra
Use these codes for governmental type and other professional and technical services provided by other governments,
other funds or by private entities_
541x)1( — Professional Services
Page 17of21
( 77 )
219
Print akite: February -I, 2022
542o —Communications
543xxx —Travel, Training and Professional Development
544xxK — Advertising, Marketing & Sponsorships
545xxx — Operating Rentals and Leases
5463m —Technology Systems & Services
547x> — Utility Services
548 -loo — Repairs & Maintenance Services
549xxx — Other Expenses
Capital Expenditures — Object codes correlate to Eden codes xxx_xx_59x_xxx_5x.xx and should be attached to GL Key's
that also have the capital flag "C' on the GL Key.
These object codes are used for costs related to the purchase or construction of items that meet the Datyfs capitalization
policy.
561xxx — Capital Outlays for Land/Right of Way (ROW)
562xxK—Capital Outlays for Buildings & Structu res
563xxK — Other Improveme nts
564xxK — Machinery & Equipment
565xxK — Construction Projects
Current Capital Outlay GL Object codes are:
x6xxxx
Capital Outlays
561000 Land Acq{ROW
562000 Buildings& Structures
563000 Other Improvements
563005 Tees &Greens
564000 Mac hi nery & Equipment
564002 Network Equipment
565000 Construction Project
565001 Right of Way
565002 Roadway
565003 Sidewalks
565004. Street Lighting
565005 Traffic Control Devices
565006 Roadside Development
565007 Structures
Debt Service Principal and interest/issuance costs
57xx o — Debt Service Principal
58xo — Debt Service Interest and Issuance Costs
Page 18 of 21
220
( 78 ]
Print date: February 4, 2022
GL OBJECT CODE UST FOR SUPPLIES/SERVICES/CAPITAL
GL O Bl GL Object Cade Description
531140 Supplies -General
531071 Office Supplies
531002 Printing Supplies
531073 Operating Supplies
531104 Event Food
531075 Meeting Food
531076 Program Food
531077 Marketing Supplies
531048 Employee Appreciation Supplies
53107} Employee Wellness Supplies
531010 Police New Officer Equip
531011 Fire Dept Bunker Gear
531011 Billing Supplies
531013 Training5upplies
532000 Repairs & Maint Supplies
532031 Repair Supplies
532072 Maintenance Supplies
532003 Safety Supplies
532074 I rogation Supplies
532005 Chemicals/Fertilizers
532076 Trees/Landscape Supplies
532007 Cleaning&Janitorial Supplies
5340 X3 Resale Supplies
539001 Pm Shop Supplies {Resale)
534042 Pro Shop Concessions
534W3 Pro Shop Custom Orders
535400 Small Tool & F nor Equipment
535401 Equipment
535032 Power Tools
535403 Office Equipment
535004 Traffic Control Devices/Tools
536000 TechnolagySupplies
S3ECO1 Computer peripherals
53E033 Network Equipment
537070 Fleet Supplies
537041 Fuel
537032 Supplies added to vehicles
537033 Supplies added to Inventory
537004 Fleet Bulk Fluids
5331X7 LftilitySupplies
539001 Purchased Water
539032 Reclaimed Water
539043 Metro Sewage Treatment
541.000 Professional Services
541071 Animal Control
541042 Attorney Services
541003 Audit
541.:46 Tukwila Scholarships
541005 Public Defense
541005 Consulting Services
5-01037 Contracted Services
541:.78 Revenue Backed 5evvices
GLOW GL Object Cade description
541009 Dispatch
541010 Inspection Services &Permits
541011 Instructors
541012 Translati an & I me rpretation
541013 Jail Services
541014 Prosecution Services
541015 Performers/Entertainment Svcs
541016 Recruitment
541017 Security/Safety Seim
541018 Temp Services
541019 Human Services Contracts
541020 Insurance -Property
541021 El ection Costs
541022 ProTemJudges
541023 Hearing Examiners
541024 Summit Strategies Gov Affairs
541025 Employee Assistance Prg EAP
541026 Employee screening/testing
541027 Special Matters (legal)
541025 Contracted Towing Se rvices
541030 I nsu rance-Liability
541051 V SWAT
542000 CCI mmuni=ions
542001 Telephene/Alarm/CellService
542002 Postage/Shipping Costs
542003 City Wide Internet
542004 Printing &Binding Services
542005 Microfilming/Imaging
542006 Recorded Documents
543000 Professional Development
543001 Memberships
543002 Registrations/Tuitions
543003 Meals -Prof Dev related
5430015 Airfare
543005 Mileage
543006 Cereifimtians
543007 HateI/Lodging
543005 Ground Transportation
543009 Prof Dev Tuition
544000 Advertising
5441301 Legal Notices
544002 Marketing
544003 Sponsorships marketing
545000 Operating Rentals & Leases
545001 Copier Rental
545002 Vehicle Rental/Lease
545003 Building Rent/Lease
545004 Equipment Rental
54507.1 FI eet rental/rept funding
546000 Tech nolagyrServices
546001 Software Maintenance Contract
546003 Web Hosting
GL OBJ GL Object Code Description
546004 Online Services -Subscriptions
547000 General Utilities
547008 Spill Response & Disposal
547009 Utility -Foster Golf Mai nt Bldg
547021 Electric Utility
547022 Natural Gas Utility
547025 Water/SewerUtility
547026 Surface Water utility
547028 Solid Waste Disposal
543000 Repair & Maint Services
543001 Repai r se rvi ces
543002 Maintenance Services
543003 Irrigation Maint Service
543004 Radios/Telemerry &taint
543005 Tree/Landscape Maintenance
543006 Uniform Cleaning/Repair
543007 Cleaning/Janitorial Services
548095 Fleet Oper & Mai nt costs
549000 Misoellaneaus Expenses
545001 Armor Car Service
549002 Credit Card fees
549003 Commute Trip Reduction CTR.
549004 Employee Appreciati on Svcs
549005 Employee Wellness Salm
549006 Entrance Fees/.Adrnssions
559007 Excise Taxes
5+59008 Settlements/Claims/Judgements
549009 Media Subscriptions
549010 Business Meals (non Prof Gear
549011 Witness &J um r Fees
549012 Bank Fees
549013 Utility One -Call Se r vi oe
549014 Business Assistance & Support
549015 COVID Relief Funds/ARRA
549016 1406 Rental Assistance Funds
549054 InterfundTaxes &OperAssmnts
561000 Land
562000 Buildings .& Structures
563000 Other Improvements
563005 Tees & Greens
564000 Machinery & Equipment
564002 Network Equipment
564003 Software Implementation
565000 Construction Projects
565001 Right off Way
5065002 Roadway
5165003 Sidewalks
5650714 Street Lighting
555005 Traffic Control Devices
565006 Roadside Development
565007 Structures
569999 Capital Contra Acct
Page 19 of 21
( 79 )
221
td: : rebrudry4, 2022
Job Ledger (replacement of Project Accounting)
In Finance Enterprise, kb Ledger codes are similar to the General Ledger, using the KEY -OBJECT structure. The Account
Balance Inquiry screen in Finance Enterprise can be used to query the JL ledger activity (reports will also be developed in
the future to report on projects).
Since the Payroll module is a later phase of the Central Square/Finance Enterprise implementation,. times heets will still
be completed using the Eden PA codes/strings. After each payroll, the Eden GLIPA codes will be mapped over to the FE
Key -Objects and imported to Finance Enterprise.
lob Ledger Key
Job Ledger Keys will use the existing PA codes from Eden and will be 8 digits long. In a handful of cases, the first digit has
been updated to align with the proper project type.
Structure of a Job Ledger Key:
1 Z 3 4 5 6 7 8
Project
Project Base Year
Type
Primary Fund
Project Type: The first digit of the JL Key identifies the type of project.
ixxxxxxx — Operations Cost Tracking
2xxxxaoo —Work Orders
3xxxxxaex— Operating Grants
5xxxxxarx — Event Cost tracking
7xxxaoaa— Planning, Monitoring & Inventory of assets
8xxxxux— Preservation & Maintenance of existing assets
gxxxxxa[x— Capital Project
Project ID
Project Base Year^ The next two digits identifies the year the project was created. For annual projects, events. etc. use
'O0' for the base year.
Primary, fund: these three digits identify where the project is funded (use fund ft).
Project ID. These last two digits provide the unique identifier (which project of the year
Page 20 of 21.
222
( 80 )
Print date: February 4, 2022
Job Ledger Object Code
Job Ledger Object codes are seven (7) digits long. These codes utilize the Eden PA structure for Phase (4 digit) and Task
3 digit) to form the seven digit object code_ While most expenditures mapped over to the new codes using this
approach, PA code expenditures that utilized the third Eden PA segment (sub task) were realigned to fit the 7 digit code_
Expenditures/Expenses object codes in the Job Ledger will startwith a 1 thru 5; following the phase/task Eden codes.
Funding sources in Eden PA often utilized all three segments (Agency, Sub -Agency, Agreement Number) and required
realignment to fit the structure. Funding source codes utilize JL Object codes starting with a 7, 8 or 9. When an
agreement number is utilized, the 5 digit code for the agreement number is used in the last 5 digits of the JL Object_
JL Objects — Funding code structure
73xroox Federal Funding
- 82xraxx Icing County
84xs000c State Funding
- 91xxaoot Traffic Impact Fees
92xxxaa Park Impact Fees
- 93xaoaat Fire Impact Fees
94xrotxot Other Funding
Page 21 of 21
81 r
223
General Ledger Code Details
Expenditures
GL Account Code Account Description
Actual
2018
2019
Projected
2020
2020
Budget
2021
2022
2022
CN001100
511000
SALARIES
205,968
210,885
206,280
000.01.511.600.11.00 SALARIES
205,968
210,885
206,280
212,760
213,562
215,715
000.01.511.600.21.00 FICA
16,186
16,599
16,299
17,024
16,337
16,502
000.01.511.600.23.00 PERS
12,867
13,601
13,100
13,686
12,604
11,348
000.01.511.600.24.00 INDUSTRIAL INSURANCE
2,337
2,411
2,660
2,966
2,706
2,706
000.01.511.600.24.50 PAID FAMILY & MEDICAL LEAVE PREMIUMS
13
313
306
-
316
319
000.01.511.600.25.00 MEDICAL,DENTAL,LIFE,OPTICAL
812
847
12,619
894
878
949
000.01.511.600.25.97 SELF-INSURED MEDICAL & DENTAL
58,290
61,457
58,608
65,942
72,215
77,992
000.01.511.600.31.00 OFFICE & OPERATING SUPPLIES
1,280
1,660
1,200
2,000
2,000
2,000
000.01.511.600.31.43 OFFICE & OPERATING SUPPLIES -MEETING l`
584
968
153
1,000
-
-
000.01.511.600.31.44 OFFICE & OPER SUPPLIES -TRAINING SPLY
-
-
-
500
-
-
000.01.511.600.41.00 PROFESSIONAL SERVICES
38,707
29,893
12,000
76,500
16,500
16,500
000.01.511.600.42.00 COMMUNICATION
4,482
4,113
4,500
6,000
6,000
6,000
000.01.511.600.43.00 TRAVEL
26,950
29,758
8,000
30,000
15,000
15,000
000.01.511.600.49.00 MISCELLANEOUS
-
--
542001
500
500
500
000.01.511.600.49.44 MISC-TRAINING REGISTRATION
5,645
9,397
900
10,000
5,000
5,000
Totals
374,120
381,903
336,625
439,772
363,618
370,531
GL Keys/Object Details
Expenditures
GL Key
GL Object
Account Description
ACTUAL
2018 2019
PROJECTED
2020
2020
BUDGET
2021
2022
CN001100
511000
SALARIES
205,968
210,885
206,280
212,760
213,562
215,715
CN001100
521000
FICA
16,186
16,599
16,299
17,024
16,337
16,502
CN001100
523000
PERS
12,867
13,601
13,100
13,686
12,604
11,348
CN001100
524000
INDUSTRIAL INSURANCE
2,337
2,411
2,660
2,966
2,706
2,706
CN001100
524050
PAID FAMILY & MEDICAL LEAVE PREMIUMS
13
313
306
0
316
319
CN001100
525000
MEDICAL,DENTAL,LIFE,OPTICAL
812
847
12,619
894
878
949
CN001100
525097
SELF-INSURED MEDICAL & DENTAL
58,290
61,457
58,608
65,942
72,215
77,992
CN001100
531000
OFFICE & OPERATING SUPPLIES
1,280
1,660
1,200
2,000
2,000
2,000
CN001100
531005
OFFICE & OPERATING SUPPLIES -MEETING ME
584
968
153
1,000
-
-
CN001100
531013
OFFICE & OPER SUPPLIES -TRAINING SPLY
0
0
0
500
-
-
CN001100
541006
PROFESSIONAL SERVICES
38,707
29,893
12,000
76,500
16,500
16,500
CN001100
542001
COMMUNICATION
4,482
4,113
4,500
6,000
6,000
6,000
CN001100
543000
TRAVEL
26,950
29,758
8,000
30,000
15,000
15,000
CN001100
549000
MISCELLANEOUS
0
0
0
500
500
500
CN001100
543002
MISC-TRAINING REGISTRATION
5,645
9,397
900
10,000
5,000
5,000
TOTALS
374,120
381,903
336,625
439,772
363,618
370,531
224
82 }
PRIORITY BASED BUDGETING (PBB)
83
225
226
WHAT IS PRIORITY BASED BUDGETING?
Priority Based Budgeting (PBB) is the City's priority -driven budgeting process that will better show
how resources are allocated to the programs and services that provide the greatest value to our
residents.
The first phase of the City's implementation of PBB was to apply the process to the General Fund for
the 2019-2020 biennium. The second phase of the implementation was to apply PBB to the Enterprise
Funds for the 2021-2022 biennium. Please note that due to lack of resources during the COVID-19
pandemic in 2020 that programs for the Enterprise funds were not scored into tiers. The City expects
to complete this part of Phase 2 during the next budget cycle.
PBB helps the City and the community evaluate how well the City's resources are aligned with the
adopted Strategic Plan and community priorities, and engage in strategic decision-making regarding
funding, adding, and/or eliminating programs and services.
The foundation of the process is to:
• Prioritize services: Evaluate the relative importance of individual programs and services
rather than entire departments.
• Do the important things well: In a time of revenue decline, a traditional budget process often
attempts to continue funding all the same programs it funded last year, although at a reduced
level. The priority -driven budgeting process focuses on identifying the services that offer the
highest value.
• Question past patterns of spending: An incremental budget process does not seriously
question the spending decisions made in years past. The priority -driven budget process puts
all the money on the table to encourage more creative conversations about services.
• Know the true cost of doing business: Focusing on the full costs of programs ensures that
funding decisions are based on the true cost of providing a service.
• Provide transparency of community priorities: When budget decisions are based on a well-
defined set of community priorities, the government's aims are not left open to interpretation.
• Provide transparency of service impact: In traditional budgets, it is often not entirely clear
how funded services make a real difference in the lives of citizens. Under priority -driven
budgeting, the focus is on the results the service produces for achieving community priorities.
• Demand accountability for results: Traditional budgets focus on accountability for staying
within spending limits. Beyond this, priority -based budgeting demands accountability for results
that were the basis for a service's budget allocation.
• Evaluating programs based on their influence in achieving the Strategic Goals: Tukwila's
programs were scored against the City's adopted Strategic Plan, as well as criteria that
incorporates mandates, reliance on the city to provide the program, cost recovery, portion of the
community served, and change in demand. Programs were also scored based on ability
to achieve community and/or good governance results. All department scores were reviewed by
peer review teams as part of a quality control process.
PRIORITY BASED BUDGETING (PBB) PROCESS
Program Inventory: The first step of the PBB process was to establish a program inventory that
encompassed all the activities the City performs. Each department developed a comprehensive list of
programs and services offered. Each program was then classified as either a community-based or
governance -based program. Governance -based programs contribute to the City's structure as a
municipal organization.
Personnel Costs and FTE: Once the program inventory was developed, the next step was to input
department personnel costs. Each department allocated the percentage of each employee's time that
is spent on specific programs. These percentages were then used to allocate personnel costs to
programs as well as calculate the allocation of full-time equivalence (FTE). Employee time is classified
by FTE, on a scale of 0-1 (with 1 being the equivalent of a full-time employee).
Non -Personnel Costs: Non -personnel cost types were also allocated in the model. Non -personnel
costs include supplies, services, intergovernmental, and capital.
Program Scoring: The next step to PBB was to score each program on several dimensions. Staff
scored each program on five basic program attributes (BPAs), using a scale of 0-4: The BPA's include:
• Level of program mandate
• Reliance on the City to provide the program
• Cost recovery of the program
• Portion of the community served by the program
• Change in the demand for the program
Next, each program was scored against either the City's four adopted Strategic Plan goals (in the case
of community programs), or five governance goals (in the case of governance programs). Each
program's performance for each result was graded on a 0-4 scale. The community program Strategic
Plan goals are as follows:
• A community of inviting neighborhoods and vibrant business districts.
• A solid foundation for all Tukwila residents.
• A diverse and regionally competitive economy.
• A positive community identity and image.
The governance program goals are:
• Ensure City facilities are safe, efficient, and inviting to the public.
• Continue to innovate and develop as an organization and support individual growth.
• Advance Tukwila's interests through participation in regional partnerships.
• Use Tukwila's Vision, Mission, and Strategic Plan to focus and prioritize City efforts.
• Ensure the long-term fiscal sustainability of the City.
Program Rankings — Tiers 1, 2, 3 & 4
The analysis described above resulted in a final score for each program. The score was developed
using a formula that provides additional weight/emphasis for a program's alignment with the strategic
goals, and for the level of mandate identified within the BPA analysis.
85
227
228
The final product splits programs into four tiers and provides a visual representation of how much
money is being spent on the programs that fall into each tier. In this representation, the first tier (T1)
identifies programs with the most direct connection and support of the City's strategic goals and other
contributing attributes. The fourth tier (T4) identifies the programs with the lowest relative connection to
the results and other attributes. It should be noted that while a program may fall into the fourth tier, it
may be mandated at either the state or federal level to provide the program.
The following graph represents the City's general fund budgeted spending from 2019 through 2022 on
programs that fall into each tier. The length of the bar indicates total dollars budgeted, with the longer
bars representing a higher budgeted amount.
Tier 1
Tier 2
General Fund Program Allocations by Tier
$17.04
Tier 3 $17.17
$16.15
$16.62
$2.66
Tier 4 $2.71
$2.49
$2.55
so
$19.34
$19.67
$19.09
$19.84
$20.36
$20.88
$19.30
1 $19.70
$5 $10 $15 $20
Millions
■ 2019 Budget ■ 2020 Budget 2021 Budget 2022 Budget
Tier 1 programs are determined by the PBB model to be those most closely aligned with the City's
strategic goals, followed by the other tiers. Tier 4 programs are also important, and may reflect strongly -
held community values, but receive a lower relative rank using the PBB scoring framework. An example
of a tier 1 program is Police patrol services. This program scored a four against all strategic goals and
also scored a 4 against most of the BPAs. An example of a tier 4 program is court hearings, a program
identified by the Municipal Court. While this particular program may indirectly impact the strategic goals,
there is no direct linkage between court hearings and the strategic goals. However, this program is a
necessary function of City government. Anyone cited within the City limits has a right to a court hearing
and is mandated at both the federal and state level.
This analysis helps to illustrate the City's ongoing effort to ensure that resources are aligned with the
programs and services that have been identified as most critical. Across all program types, the City is
currently providing the greatest level of resources to tier 1 and tier 2 programs, with $38.4 million and
$39.5 million allocated to tier 1 and tier 2 programs in 2021 and 2022 respectively.
Analyzing the data from a different perspective, the charts below show how programs are allocated by
tier at a department level for the current budget biennium (2019-2020) and the proposed budget (2021-
2022). Public safety will continue to be not only have the largest allocation of resources but also have
the biggest allocation to tier 1 programs.
Program Allocation By Department 2019-2020
Police r
Fire
Community Dev
Public Works
Mayor 1
City Council ice`
Recreation
Street Maint
Finance
Park Maint
Admin Svcs
Municipal Court
$0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 $22 $24 $26 $28 $30 $32 $34 $36 $38 $40 $42
Millions
Police
Fire
Community Dev
Public Works
Mayor
City Council
Recreation
Street Maint
Finance
Park Maint '-
Admin Svcs
Municipal Court
r Tier 1 Tier 2 Tier 3 Tier 4
Program Allocation By Department 2021-2022
$0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 $22 $24 $26 $28 $30 $32 $34 $36 $38 $40
Millions
Tier 1 Tier 2 Tier 3 Tier 4
87 3
229
PERFORMANCE MEASURES
Performance measures are tools put in place by program staff and managers and reviewed by City
leadership to assure alignment between programs and City goals. These measures are select points of
data that represent the work performed within departments in a way that can track the effectiveness of
programs over time.
S.M.A.R.T. goals track Specific, Measurable, Achievable, Realistic, and Timely objectives set forth by
department heads. The objective of a SMART goal is to tell exactly what is expected, why it is important,
who is involved, when it is going to happen, and which attributes are important. Such goals have a much
greater chance of being accomplished as compared to general goals.
Development of the performance measures is the next step in the City's transition to Priority Based
Budgeting (PBB). Because the City is still in this transition phase, the performance measures below
represent some but not all of the City's programs. The goal is to round out all of the performance
measures over time in subsequent budgets. Additionally, since 2021 is the first year these performance
measures are reported, many of them will be blank. However, departments have determined target
results and the City will begin tracking actual activity for most measures beginning January 2021.
WHY MEASURE PERFORMANCE?
Measuring performance provides a quantifiable way in which to recognize successes and areas needing
improvement. The City's progress is measured against data from previous years, targets set in master
plans and benchmarks with other communities. The performance measures are tied to the City's adopted
strategic plan goals and allow City stakeholders visibility into how the goals are being accomplished. By
measuring our programs using a variety of data, we can see how Tukwila's present state relates to its
past indicators and future plans. Performance measures offer transparency and allows the public to hold
the City accountable. The report provides insight into costs, accomplishments, and areas of improvement
over time.
230
( 88 )
ALIGNING PERFORMING MEASURES TO STRATEGIC GOALS
Performance measures provide a logical connection between City resources and desirable community
outcomes. If the City devotes resources to a service area, then it should be able to achieve desired
outcomes in line with the Council goal of that service area. Each service area includes a performance
measures chart of City inputs, outputs, and outcomes. Each section provides a description of why the
specific measures were chosen, how the City is performing and how the City is working toward achieving
desired outcomes.
✓
O
O
0
O
STRATEGIC GOALS AND OBJECTIVES
A community of inviting neighborhoods and vibrant business districts
+ Cultivate community ownership of shared spaces.
+ Build a broad and collaborative approach to preventing crime and increasing the sense of safety,
+ Focus City planning and investments an creating a connected, dynamic urban environment.
+ Use City efforts and investments to realize established visions for specific sub -areas.
+ Build and maintain public infrastructure that supports a healthy and attractive built
and natural environment.
A solid foundation for all Tukwila residents
+ Partner with organizations that help meet the basic needs of all residents.
+ Strive for excellent education, vocational supports, and personal growth opportunities
through effective partnerships and City services,
+ Encourage maintenance, improvements and diversity in the City's housing stock.
+ Work to eliminate systemic barriers and provide equitable access to opportunities and
services as outlined in the City's Equity Policy.
A diverse and regionally competitive economy
+ Embrace the City's economic potential and strengthen the City's role as a regional
business and employment center.
+ Strengthen the City's engagement and partnership with the business community,
+ Encourage development, maintenance, improvements, and diversity in the City's
stock of business space.
A high -performing and effective organization
+ Use Tukwila's Vision, Mission, and Strategic Plan to focus andpriaritize City efforts.
+ Advance Tukwila's interests through participation in regional partnerships.
+ Continue to develop as an organization and support individual growth.
+ Ensure City facilities are safe, efficient and inviting to the public,
+ Ensure the long-term fiscal sustainability of the City,
A positive community identity and image
+ improve the City's ability to build trust and work with all members of the Tukwila community.
+ Facilitate connections among Tukwila's communities,
+ Promote a positive identity and image of Tukwila.
89
231
GOAL: A COMMUNITY OF INVITING NEIGHBORHOODS AND VIBRANT BUSINESS DISTRICTS
A high performing and effective organization can be measured by monitoring the following objectives:
• Cultivate community ownership of shared spaces.
• Build a broad and collaborative approach to preventing crime and increasing the sense of safety.
• Focus City efforts and investments on creating a connected, dynamic urban environment.
• Use City efforts and investments to realize established visions for specific sub -areas.
• Build and maintain public infrastructure that supports a healthy and attractive built and natural
environment.
The City
prioritizes
safety of
employees,
residents, and
structures
So that...
City personnel
are prepared to
respond to all
types of
emergencies
So that...
Percent of eligible fire department personnel who
maintain EMT certification annually.
2019
2020
Target
MEASURE
Percent of reported potholes repaired each year.
*
*
100%
Percent of safety camera tickets that reach
disposition within 120 days.
*
*
80%
Achieve training and certification requirements to
maintain Rescue Squad with Zone 3 partners.
*
75%
100%
Percent of Tukwila high-risk buildings (schools and
apartments) reviewed annually to ensure they
have current pre -fire fire plans.
*
*
10%
Decrease Patrol's average Dispatch -to -On scene
time by 5% as compared to 2019/2020 average.
*
*
Decrease
by 5%
Percent of code enforcement requests for action
responded to within 3 business days.
*
*
90%
Percent of code enforcement violations served to
property owner via written communication within
10 business days.
*
*
90%
Percent of eligible fire department personnel who
maintain EMT certification annually.
100%
100%
100%
Percent of Fire Investigators who maintain
investigator training requirements annually.
100%
100%
100%
Percent of fire apparatus and equipment including
SCBAs that are tested annually per L&I standards.
100%
100%
100%
Percent of commissioned officers who fulfill the
training requirements set forth by LETSCA
(Initiative -940) while maintaining all other
mandated training requirements
*
100%
Percent of city vehicles maintained on schedule.
*
*
100%
Maintain compliance with Washington
Administrative Code (WAC) for inspection,
cleaning, and replacement of all personal
protective equipment (PPE).
80%
80%
100%
232
90
The residents
are assured
that they live in
a safe and well-
maintained
community
Percent of current stormwater structures inspected
on schedule every two years.
*
100%
Percent of scheduled valve and hydrant
inspections performed annually.
*
*
100%
Percent of restrooms cleaned daily at high-quality
services levels.
*
75%
Percent of building maintenance work orders
responded to within 3 days.
*
100%
Road and Street Administration maintains the traffic control and safety devices of the transportation
network. This program is committed to the repair of 100% of reported potholes each year.
Managing the Safety Cameras Case Flow takes determination and dedication. Through reporting, the
court will track the percentage of safety camera tickets that reach disposition within 120 days. The goal
is an 80% completion rate. As an additional point of interest, the program will note the number of violations
committed by Tukwila residents
The Fire Department is an all hazard service, providing first tier emergency response to incidents
involving fire, emergency medical services, motor vehicle accidents, hazardous materials, rescue, and
fulfills non -emergency service requests as well. The Rescue Squad program aims to maintain
certification requirements to enable continuation membership with Zone 3 partners.
Police Patrol Services is responsible for responding to the immediate needs of the Tukwila community.
By providing a constant presence, both during and between calls for service, this program houses the
City's law enforcement first responders. The employees assigned to this program are also tasked with
nearly all facets of police work, requiring a high-level of expertise and training.
Code Enforcement ensures that properties remain in compliance with the City's laws and regulations
for land use, zoning, building, housing, landscaping and environmentally sensitive areas. The following
measures will help determine success (1) Respond to complaints or request for action within 3 business
days, and (2) provide written notification of violation to the property owner within 10 business days.
The Fire Department Pre -Fire program strives to review 10% of all Tukwila high-risk buildings (schools
and apartments) annually to ensure they have current pre -fire fire plans
One of the requirements of firefighter staff is to receive ongoing Training, including emergency medical
technician (EMT) certification. The department will ensure that 100% of eligible fire department personnel
will maintain EMT certification annually.
The Fire Prevention Investigation program strives to determine the origin and cause of fires, and
includes report writing and court preparation. Fire prevention staff aim to maintain all applicable
investigator training requirements annually.
Safety within the Fire Department is a top priority, including maintenance of Personal Protective
Equipment (PPE). Fire continues to ensure 100% of fire apparatus and equipment including SCBAs are
tested annually per Washington State Department of Labor & Industries standards.
( 91 )
233
234
The Police Department Training Program coordinates and tracks all training conducted for the
Department. For new officers, this means coordinating their academy experience. For existing staff, the
state requires all officers to attend 24 hours of in-service training every year.
An important program of the Fleet Fund is Vehicle Maintenance. Fleet has set an expectation that they
will complete 100% of the scheduled vehicle maintenance on time in both 2021 & 2022.
Fire is responsible for Equipment Maintenance & Replacement, which entails cleaning and minor repair
of apparatus, small tools, SCBA, and other specialty equipment. The target is to maintain 100%
compliance with Washington Administrative Code (WAC) for inspection, cleaning, and replacement of all
personal protective equipment (PPE).
The Surface Water program provides for engineering studies, preliminary engineering, construction, and
maintenance of public surface water and drainage facilities to include control and monitoring of storm
and surface water quantity and quality. The annual goal is to inspect 100% of all surface water structures
every two years.
The mission of the Water Utility is to operate and maintain a water distribution system that will provide
residential, commercial, and industrial customers with high water quality, adequate capacity and
pressure, at economical costs. A key program of the Water department is the valve & hydrant
maintenance inspections. Flushing fire hydrants and ensuring valves turn and water is disbursed at
expected pound -force per square inch (PSI) is paramount to ensuring the safety of City residents and
that city infrastructure is operating at the level of expectation. The Fire Department is relying on city staff
to ensure proper functionality of all fire hydrants. The Water Utility has an expectation of completing 100%
of valve & hydrant maintenance inspections annually.
The function of the Facility Maintenance division is to preserve all City buildings through a preventive
maintenance, repair, and operating program in order to provide a safe, pleasant, and productive work
environment for City staff and clients. The Facility Cleaning/Custodians program aims to clean 75% of
all restrooms daily at full-service cleaning level. The Facility Improvements program strives to respond
to 100% of building maintenance work orders within three days.
GOAL: A SOLID FOUNDATION FOR ALL TUKWILA RESIDENTS
A solid foundation for all Tukwila residents can be measured by monitoring the following objectives:
• Partner with organizations that help meet the basic needs of all residents
• Strive for excellent education, vocational supports, and personal growth opportunities through
effective partnerships and City services.
• Encourage maintenance, improvements, and diversity in the City's housing stock.
• Work to eliminate systemic barriers and provide equitable access to opportunities and services
as outlined in the City's equity policy.
The City
prioritizes
equity for all
So that...
Tukwila
provides
programs that
meet the needs
of all residents
So that...
Tukwila
residents,
visitors and
employees can
reach their full
potential
MEASURE
2019
2020
Target
Number of equity policy priorities that are achieved
annually.
3
4
3
Number of residents who receive housing
assistance per year.
*
*
??
Number of residents who receive minor home
repair assistance per year.
*
*
??
Successfully launch pilot Mental Health
Practitioner Program and involve contracted MHP
in 5 "persons -in -crisis" incidents per month.
*
*
5 per
month
Percent of employees that are satisfied with their
work in Tukwila Parks, Recreation, and Golf
Department based on results from a quarterly
survey.
*
*
8000
Community Engagement division focuses on Equity among all Tukwila residents. They will strive to
identify and achieve 3-4 Equity Policy priorities for implementation on an annual basis.
The City is committed to funding for approvals and referrals to agencies that provide rent and utility
financial assistance, shelter, and other Housing Assistance. The Human Services department will track
the number of residents who received housing assistance per month.
Tukwila serves as the fiscal agent for the Minor Home Repair Program for the Cities of Tukwila, SeaTac,
Covington and Des Moines. On an annual basis, Tukwila applies for the Federal CDBG funds on behalf
of the four cities, that are distributed through King County. Minor home repair assists very low to moderate
income homeowners with repairs addressing conditions such as minor plumbing and electrical issues,
and health and safety repairs. The Human Services Department will track the number of residents who
received minor home repair in a month.
93
235
The Community Policing Team (CPT) is a proactive team with a main goal of establishing a relationship
between the Tukwila Police, residents, and business owners, allowing for a more proactive police role in
the community. Patrolling on foot, bicycles, and via traditional vehicles, the team partners with community
groups to identify opportunities for cooperation and increased safety
Parks & Recreation staff strive to provide leadership and management to program areas including
program budget, partnership and sponsorship opportunities, communication and outreach initiatives, and
Customer Service. Success will be measured with annual surveys, with the measure of success as 80%
satisfaction for Parks & Recreation employees.
GOAL: A DIVERSE AND REGIONALLY COMPETITIVE ECONOMY
A diverse and regionally competitive economy can be measured by monitoring the following objectives:
• Embrace the City's economic potential and strengthen the City's role as a regional business and
employment center.
• Strengthen the City's engagement and partnership with the business community.
• Encourage development, maintenance, improvements, and diversity in the City's stock of
business space.
The City aims
to provide a
welcoming and
supportive
environment for
businesses
So that...
Tukwila has a
healthy
business and
tourism
economy
Number of business licenses issued annually to
Tukwila businesses
2019
2020
Target
MEASURE
Number of businesses assisted annually by the
Office of Economic Development
*
10
50
Percent of people likely to recommend Tukwila to
others based on survey of Puget Sound resides
(Net Promoter Score)
*
*
TBD
Percent of commercial tenant improvement
applications that are issued a permit or correction
letter within 30 days.
*
*
90%
Percent of commercial new construction
applications that are issued a permit or correction
letter within 60 days.
*
*
90%
Percent of temporary sign applications that are
issued a permit or correction letter within 3
business days.
*
*
90%
Percent of permanent sign applications that are
issued a permit or correction letter within 7
business days.
*
*
90%
Percent of short plat or boundary line adjustment
applications that are approved or issued correction
letter within 30 business days.
*
*
90%
Number of business licenses issued annually to
Tukwila businesses
*
*
TBD
Number of third -party lodging tax applications
approved for funding
*
10
236
94
So that...
Tukwila's
economy
supports the
community's
needs
Percent of electrical inspections done within 48
hours
*
9000
Percent of building inspections (mechanical,
plumbing, gas) done within 48 hours
*
*
90%
Percent of capital projects completed on-time and
within budget.
*
80%
Total annual retail sales tax collected in Tukwila
$19.9
M
$16.2
M
Increas
e
Total annual property tax collected in Tukwila
$15.5
M
$16.3
M
Increas
e
The Economic Development division of the Mayor's office focuses on Business & Development
Retention, Expansion, and Attraction. The annual goal includes communicating with at least 50 new
business prospects annually.
A net promoter score (NPS) is the likelihood someone will recommend Tukwila to someone else. NPS is
calculated by doing a survey of customers, in this case, Puget Sound residents. We then take the
favorable surveys and subtract the unfavorable results to get the NPS.
The Permit Intake and Coordination program take in approximately 1,800 construction permits,
manage review, and issue approval or denials. The Department of Community Development strives to
issue a permit or correction letter for commercial applications (1) within 30 days for tenant improvements,
and (2) within 60 days for new construction.
The Current Planning program provides reviews of Building and Construction permits, sign permits,
special permissions, wireless facilities, and review development proposals such as Plats, SEPA, and
Shoreline Permits. The Department of Community Development aims to issue a permit or correction letter
for new sign applications (1) within 3 business days for temporary signs, and (2) within 7 business days
for permanent signs. In addition, the goal is for short plats or bounds line adjustments to be approved
within 30 business days.
The Finance Department has partnered with the State of Washington to handle Business License
Administration. One of the measures of economic prosperity can be determined with the number of
business licenses issued annually. The goal is to issue an equal or greater number of licenses when
compared to the prior year.
Economic Development oversees the Lodging Tax Application process annually and aims to approve
10 applications for funding from third -party vendors.
The Construction Permit Review and Inspection program provides reviews of Building, Plumbing,
Electrical, Energy, and Mechanical Permits for compliance with State Building Code requirements. The
Department of Community Development aims to provide inspections within 48 hours for electrical,
mechanical, plumbing, and gas.
The Engineering Division oversees the Capital Improvement Program which is in line with the biennial
budget — The department manages capital projects with an expectation to complete projects on time and
within budget, with an 80% success rate.
(95)
237
The Finance Department is responsible for accounting for Sales & other taxes. Sales tax is collected by
the state and remitted to the City monthly, and the target is for this tax to increase year over year. Property
taxes are remitted to the City from King County, and again, the target is to see an increase each year.
238
( 96 )
GOAL: A HIGH -PERFORMING AND EFFECTIVE ORGANIZATION
A high performing and effective organization can be measured by monitoring the following objectives:
• Use Tukwila's vision, mission, and strategic plan to focus and prioritize City efforts
• Advance Tukwila's interests through participation in regional partnerships.
• Continue to develop as an organization and support individual growth.
• Ensure City facilities are safe, efficient, and inviting to the public.
• Ensure the long-term fiscal sustainability of the City.
City employees
are high
achieving and
work is
produced at the
highest caliber
and within
deadlines
So that...
Tukwila
decision
makers have
timely and
accurate
information at
hand
So that...
Tukwila
continues to
make positive
strides as a City
MEASURE
2019
2020
Target
Percent of individual training goals achieved by
Court employees annually.
*
*
80%
Prepare and present a fiscally responsible
balanced, sustainable budget to the mayor by Sept.
30th of every even year. Beginning fund balance +
revenues = expenditures + ending fund balance.
*
YES
YES
Percent of business licenses approved by the city
within 10 business days of application.
*
100%
Percent of accurate and timely reports presented
to the Council Finance Committee per year.
*
*
100%
Percent of monthly department finance reports
distributed within 30 days of month end.
*
100%
Achieved Annual Unqualified Opinion of the State
Audit.
YES
*
YES
Achieve certification as Accredited Law
Enforcement Agency by the Washington
*
*
YES
Association of Sheriffs and Police Chiefs.
The Tukwila Municipal Court is committed to serving the Tukwila community with the highest
level of professionally trained and educated staff. Continuing Law Related Education for court
staff is paramount and a high priority of the Tukwila court. The department will document the
percentage of individual training goals that have been accomplished by staff in a twelve-month
period and will strive for an 80% success rate.
A primary responsibility of the Finance Department is the biennial Budget Preparation. This
program, which is required by law, aims to be submitted to the Mayor no later than September
30th of even numbered years.
The Finance Department is responsible for routing Business License Applications to various
City departments to ensure compliance with applicable city codes. In order to provide high quality
239
service to Tukwila businesses, the goal is for applications to be approved within 10 business
days.
As an internal service provider, Finance focuses efforts on providing Financial Reporting and
Analysis for internal customers. This program can be measured in the following ways: (1)
providing accurate and timely reports to the Council 100% of the time; and (2) distributing
financial reports to other departments within 30 days of month end.
An essential function of the Finance Department is the Annual Audit conducted by the State
Auditor's Office. Success can be measured in the form of an unqualified audit opinion.
The Professional Standards program manages and maintains the Police Department's
localized governing policies. One of the primary measures of success is certifying as an
Accredited Law Enforcement Agency by the Washington Associated of Sheriffs and Police
Chiefs.
240
98