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HomeMy WebLinkAbout08-24-2015 CITY COUNCIL STUDY SESSION AGENDAAlityrB URN WASHINGTON City Council Study Session August 24, 2015 - 5:30 PM Auburn City Hall AGENDA Watch the meeting LIVE! Watch the meeting video M eeti ng vi dens are not avai I abl e unti 172 hours after the meeting has concluded. I. CALL TO ORDER A. Roll Call II. ANNOUNCEMENTS, REPORTS, AND PRESENTATIONS III. AGENDA ITEMS FOR COUNCIL DISCUSSION A. 2nd Quarter 2015 Financial Report* (Coleman) B. Resolution No. 5163* (Snyder) A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor and City Clerk to execute Public Way Agreement No. 15 -22 between the City of Auburn and Sprint Communications Company L.P. C. Annual Street Selection for Arterial and Local Street Preservation* (Snyder) D. Easement Relinquishment for 1905 Howard Road SE, Parcel 1921059206* (Snyder) IV. OTHER DISCUSSION ITEMS V. ADJOURNMENT Agendas and minutes are available to the public at the City Clerk's Office, on the City website (http: / /www.auburnwa.gov), and via e -mail. Complete agenda packets are available for review at the City Clerk's Office. *Denotes attachments included in the agenda packet. Page 1 of 64 DI.A AUBURN wASHINu Agenda Subject: 2nd Quarter 2015 Financial Report Department: Finance AGENDA BILL APPROVAL FORM Attachments: Q2 Financial Report Administrative Recommendation: Date: August 18, 2015 Budget Impact: $0 For discussion only. Background Summary: The purpose of the quarterly financial report is to summarize for the City Council the general state of Citywide financial affairs and to highlight significant items or trends that the City Council should be aware of. The following provides a high level summary of the City's financial performance; further details can be found within the attached financial report. The second quarter status report is based on financial data available as of July 30, 2015 for the period ending June 30, 2015. Sales tax information represents business activity that occurred through April 2015. General Fund: The General Fund is the City's largest fund and accounts for the majority of City resources and services, other than those required by statute to be accounted for in another fund. Through June 2015, General Fund revenues totaled $30.9 million and exceed the year -to -date budget of $29.8 million due primarily to increased revenues from sales tax collections, development services fees, and revenues from culture and recreation activities. Retail sales tax collections through the second quarter of 2015 exceed budget by $467,000 or 7.1 %, and exceed revenues collected for the same period last year by $360,000. Development services fees collected through the first half of 2015 exceed budget expectations by $314,000, or 78.3 %, due primarily to an increase in plan check revenues, which have already exceeded budget for the year. In addition, culture and recreation revenues exceed budget by $204,000, or 19.7 %, primarily due to higher than anticipated revenues for greens fees at the Auburn Golf Course as well as an increase in revenues for league fees. These favorable increases are slightly AUBURN * MORE THAN YOU IMAGINED Page 2 of 64 DI.A offset by lower than budgeted collections for electric and natural gas taxes ($345,000, or 13.0 %) due primarily to a mild winter that reduced customer heating demands. This also resulted in a year- over -year decline in electric and natural gas collections from the same period last year. General Fund expenditures through the first half of 2015 totaled $28.4 million compared to a budget of $30.4 million. Year -to -date General Fund expenditures are running 7.3% or $1.9 million higher than the same period last year. The increase in year- over -year expenditures is due to several factors, including a $1.3 million transfer to Cumulative Reserve to replenish prior withdrawals, and an increase in interfund charges (particularly in Innovation and Technology due to increased operating and equipment replacement costs, and in Equipment Rental due to the addition of the Golf Course to the General Fund and increased operating, capital construction and replacement costs). In addition, salary and benefit costs have increased year -to -date by $565,000, or 3.7% due to lower departmental vacancies compared to the year prior as well as increased costs associated with health care and pensions. Year -to -date, 2,563 pet licenses have been sold resulting in $73,605 in revenue. For the same period in 2014, 3,063 licenses were sold resulting in $76,930 in revenue. Enterprise Funds: The City's seven enterprise funds account for operations with revenues primarily provided from user fees, charges or contracts for services. At the end of the second quarter, the Water fund had operating income of $110,400 compared to operating income of $273,800 in 2014. The Sewer fund ended the quarter with a net loss of $17,000 compared to income of $81,000 in 2014. The Sewer -Metro Utility ended the period with an operating loss of $174,000 compared to operating income of $1,303,100 in the previous year. Lastly, the Stormwater Utility ended the quarter with operating income of $692,300 which compares to operating income of $759,200 in 2014. The Cemetery ended the second quarter with net operating income of $68,200 compared to an operating loss of $28,000 in 2014. Internal Service Funds: Internal Service Funds provide services to other City departments and include functions such as Insurance, Worker's Compensation, Facilities, Innovation and Technology, and Equipment Rental. All funds have sufficient revenues to cover year - to -date expenditures. Investment Portfolio: AUBURN * MORE THAN YOU IMAGINED Page 3 of 64 The City's total cash and investments at the end of Q2 -2015 was $121.9, and compares to $118.3 million at the end of Q1 -2015. Reviewed by Council Committees: Councilmember: Staff: Coleman Meeting Date: August 24, 2015 Item Number: DI.A DI.A AUBURN * MORE THAN YOU IMAGINED Page 4 of 64 N Quarterly Financial Report Through Q2 -2015 General Fund Summary 0 $18 $16 $14 $12 $10 $8 $6 $4 $2 so w W 0 Year -To -Date General Fund Revenues and Expenditures (Through Q2 -2015) • YTD ■YTD ■YTD Budget Actuals Actuals (Favorable) (Unfavorable) Oher Taxes 11 Revenues 1 o y LL m d u L U L C o y te 0 a $35 $30 $25 $20 L' $15 • $10 $5 so $29.8 $30.9 $30.4 $78 4 11 I Total Total Revenues Expenditures i v °S a a `w � H H � Intergovernmental Expenditures Other Expenditures $12 $10 Year -To -Date General Fund Expenditures by Department (Through Q2 -2015) ■YTD ■YTD ■YTD Budget Actuals Actuals (Favorable) (Unfavorable) 72 ? ; a3v `C0 m v « E O C Y E GJ V 0 O V1 .E N E N Q • 0 S 0 V m � O •E a L,11,6i d i Quarterly Financial Report Through Q2 -2015 General Fund Summary of Sources and Uses 2015 2014 2015 YTD Budget vs. Actual Annual Mil Budget YTD Budget YTD Actual YTD Actual Favorable (Unfavorable) Amount Percentage $ 17,182,600 13,662,000 1,856,000 1,589,000 282,000 3,452,300 330,300 3,435,600 1,152,000 888,900 63,000 1,811,000 106,000 33,000 232 400 $ 9,040,600 $ 9,082,406 $ 8,345,532 $ 41,806 0.5 % Operating Revenues Property Tax Sales Tax Sales Tax - Annexation Credit Criminal Justice Sales Tax 6,613,100 887,200 760,000 7,080,481 953,126 861,400 6,720,176 886,979 791,944 467,381 65,926 101,400 7.1 % 7.4 % 13.3 % Brokered Natural Gas Tax 178,700 1,695,000 135,300 159,349 1,719,324 135,674 174,971 1,683,352 133,624 (19,351) 24,324 374 (225,320) (119,880) 12,152 224 (30,161) 1,874 18,320 (31,650) (10.8) % 1.4 % 0.3 % (12.0) % (15.4) % 2.7 % 0.6 % (3.3) % 3.5 % 109.7 % (27.7) % City Utilities Tax Admissions Tax Electric Tax Natural Gas Tax 1,873,800 778,900 1,648,480 659,020 1,901,539 786,907 Cable TV Franchise Fee 442,900 36,100 901,400 455,052 36,324 871,239 441,481 31,598 916,112 Cable TV Franchise Fee - Capital Telephone Tax Garbage Tax (external) Leasehold Excise Tax Local Gambling Tax Taxes sub -total 52,980 16,700 114 200 54,854 35,020 82 550 52,926 17,649 137 999 $ 46,076,100 $ 219,000 1,100,000 532,300 5,466,451 96,500 515,100 680,000 2,058,080 788 040 $ 23,526,880 $ 23,834,301 $ 23,022,789 $ 307,421 1.3 Business License Fees Building Permits Other Licenses & Permits $ 106,000 652,400 251,100 $ 137,902 645,220 269,145 $ 94,037 833,282 327,199 $ 31,902 (7,180) 18,045 30.1 % (1.1) % 7.2 % Intergovernmental (Grants, etc.) 2,571,785 2,602,995 2,377,371 31,210 1.2 % Charges for Services: General Govemment Services Public Safety Development Services Fees 50,900 297,432 401,000 43,704 287,517 715,082 64,122 287,781 638,333 (7,196) (9,915) 314,082 (14.1) % (3.3) % 78.3 % Culture and Recreation 1,032,600 414 700 1,236,235 485 978 1,110,564 758 806 203,635 71 278 19.7 % 17.2 % 11.2 31.3 % Fines and Forfeits Fees /Charges /Fines sub -total Interest and Other Eamings $ 11,455,471 $ 36,850 $ 5,777,917 $ 17,900 $ 6,423,778 $ 23,497 $ 6,491,494 $ 18,714 $ 645,861 $ 5,597 Rents, Leases and Concessions 573,200 32,000 107,400 539,380 25 000 308,500 16,200 301,118 20,852 371,808 25,789 (7,382) 4,652 (2.4) % 28.7 % Contributions and Donations Other Miscellaneous Transfers In Insurance Recoveries - Capital & Operating Other Revenues sub -total 46,700 76,000 12 600 102,512 76,000 110 458 68,888 121,097 40 229 55,812 0 97 858 119.5 % 0.0 % 776.7 % $ 1,313,830 $ 477,900 $ 634,438 $ 646,526 $ 156,538 32.8 Total Operating Revenues $ 58,845,401 $ 29,782,697 $ 30,892,517 $ 30,160,808 $ 1,109,820 3.7 Operating Expenditures Council & Mayor $ 915,017 $ 460,000 $ 446,739 $ 381,106 $ 13,261 2.9 Administration 1,299,136 649,800 434,188 327,627 215,612 33.2 Community & Human Services 1,348,323 692,900 423,553 443,788 269,347 38.9 % Municipal Court & Probation 1,935,710 405,600 272,076 85,577 133,524 32.9 % Human Resources 1,137,785 553,600 510,844 642,027 42,756 7.7 % Finance 1,329,284 677,900 623,422 567,757 54,478 8.0 % City Attorney 2,202,159 1,116,500 912,293 827,842 204,207 18.3 Community Development 4,606,675 2,272,000 1,919,180 1,880,297 352,820 15.5 Jail-SCORE 3,670,000 1,835,000 1,829,432 2,464,589 5,568 0.3 Police 22,887,782 11,129,300 10,811,956 9,965,305 317,344 2.9 Wo Public Works 2,641,027 1,270,400 1,326,774 1,279,946 (56,374) (4.4) Parks, Arts & Recreation 11,067,413 5,460,900 5,351,703 4,761,923 109,197 2.0 Streets 3,365,676 1,506,500 1,289,104 1,469,914 217,396 14.4 Non - Departmental 4,660,748 2,408,328 2,298,317 1,411,850 110,011 4.6 Total Operating Expenditures $ 63,066,735 $ 30,438,728 $ 28,449,580 $ 26,509,549 $ 1 DI.A 2 Page 6 of 64 Quarterly Financial Report Through Q2 -2015 Overview This financial overview reflects the City's overall financial position for the fiscal period ending June 30, 2015 and represents financial data available as of July 30, 2015. The budgeted revenues and operating expenditures are primarily based on the collection /disbursement average for the same period of the two prior years. Through the first half of 2015, General Fund revenues totaled $30.9 million compared to a budget of $29.8 million and were $732,000 higher than the revenues collected during the same period the year prior. Some notable variances to budget year -to -date include: • General Fund sales tax revenues totaled $7.1 million and exceeded budget by 7.1% or $467,000, and exceed prior year collections by $360,000. The areas of significant increase in sales activity are primarily in the automotive, retail trade, and construction categories. • Development services fees totaled $715,000 and exceeded budget by $314,000. The increased revenues were attributable to plan check revenues which total $576,000 through Q2 -2015 and compare to a year -to -date budget of $324,000. • Culture and recreation revenues exceeded the year -to -date budget by $204,000 and exceed collections for the same period last year by $126,000. The year- over -year increase is primarily due to $91,000 in increased revenues collected at the Auburn Golf Course for greens fees this year compared to the same period last year (representing a 19.5% increase). • Electric tax revenues and natural gas tax revenues year -to -date are running under budget by $225,000 and $120,000 respectively due primarily to a mild winter, which reduced the customer demand for heating. General Fund expenditures through the first half of 2015 totaled $28.4 million compared to a budget of $30.4 million. Year -to -date General Fund expenditures are running 7.3% or $1.9 million higher than the same period last year. The increase in year- over -year expenditures are due to several factors including a $1.3 million transfer to Cumulative Reserve to replenish prior withdrawals, and an increase in interfund costs (particularly in Innovation and Technology, due to increased operating and equipment replacement costs, and in Equipment Rental due to the addition of the Golf Course to the General Fund and increased operating, capital construction and replacement costs). In addition, salary and benefit costs have increased year -to -date by $565,000, or 3.7% due to lower departmental vacancies compared to the year prior as well as increase costs associated with health care and pensions. Lastly, the cost of providing 911 services in 2015 has increased 30% over the year prior. DI.A 3 Page7of64 Quarterly Financial Report Through Q2 -2015 Expenditures Revenues General Fund 2015 Revenues vs. Expenditures ■ $28.4 M t f $30.4 M ❑ 2015 YTD Actual ❑ 2015 YTD Budget $30.9 M $29.8 M $ Millions $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 Revenues The combined total of property tax, sales /use tax, utility tax, gambling, and admissions tax provides approximately 80% of all resources supporting general governmental activities. The following section provides additional information on these sources. Property Tax collections through Q2 -2015 totaled $9.1 million and is on target to end the year at budget. The property tax revenue collection through June 2015 compares to $8.3 million collected the same period the year prior, which represents an 8.8% increase year- over -year. 0 g. $18.0 $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 Property Taxes 2015 YTD Budget —2015 YTD Actual 2014 Actual i I I I r s s Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 4 Page 8 of 64 Quarterly Financial Report Through Q2 -2015 Sales tax distributions Citywide totaled $8.1 million of which $7.1 million was distributed to the General Fund and $997,000 was distributed to the Local Street Fund (SOS) program.* Through June 2015, total Sales Tax revenue collected in the General Fund exceeded budget expectations by $467,000, or 7.1%. 0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 Sales & Use Tax (Net of Revenue from Construction) 2015 YTD Budget —2015 YTD Actual 2014 Actual Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec * Beginning in 2013, Local Street Fund (Fund 103) street repairs have been funded from sales taxes on construction. The total amount transferred year -to -date through Q2 -2015 was $996,884. The graphic above presents sales taxes under the current policy. The following table breaks out the City's base sales tax, excluding Criminal Justice, Annexation Credit and Streamlined Sales Tax Mitigation, by major business sector. DI.A Comparison of Sales Tax Collections by SIC Group June -2015 Component Group 2014 Actual 2015 Actual Change from 2014 Amount Percentage Construction $ 858,847 $ 996,884 $ 138,037 16.1 Manufacturing 576,227 436,192 (140,034) (24.3) Transportation & Warehousing 19,651 28,097 8,446 43.0 Wholesale Trade 583,189 609,203 26,014 4.5 Automotive 1,546,982 1,778,094 231,112 14.9 Retail Trade 2,315,684 2,483,952 168,268 7.3 Services 1,620,072 1,728,219 108,146 6.7 Miscellaneous 75,543 30,968 (44,575) (59.0) YTD Total $ 7,596,196 $ 8,091,609 $ 495,413 6.5 5 Page 9 of 64 Quarterly Financial Report Through Q2 -2015 Total sales tax revenue collected through Q2 -2015 exceeded prior year collections by $360,000 or 5.4 %. The business sectors showing the largest increase in revenues compared to the same period last year were in the automotive industry, retail trade and construction. Total sales tax revenue on construction, which is transferred to the Local Street Fund (Fund 103) for local street repair and maintenance, totaled $997,000 and exceeded both budget and prior year collections by $283,000 and $138,000 respectively. 0 $1.8 $1.6 $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 $0.2 $0.0 Sales Tax on Construction Transfer 2015 YTD Budget 2015 YTD Actual 2014 Actual Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 6 Page 10 of 64 Quarterly Financial Report Through Q2 -2015 Utility Taxes consist of interfund taxes on City utilities (Water, Sewer, Storm and Solid Waste) and taxes on external utilities (Electric, Natural Gas, Telephone and Solid Waste). Utility taxes collected through the second quarter of 2015 totaled $5.0 million, compared to a budget of $5.3 million. $12.0 $10.0 $ 8.0 o $6.0 $4.0 $2.0 $0.0 Utility Tax 2015 YTD Budget —i -2015 YTD Actual 2014 Actual Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec As shown in the table below, overall utility tax revenues collected year -to -date were $5.0 million, resulting in underperformance relative to budget of $349,000, or 6.6 %. A mild winter has reduced customer heating demands and resulted in year- over -year declines in electric and natural gas revenue sales and therefore tax collections. Utility Tax by Type June -2015 Utility Tax Type 2014 Actual 2015 2015 Budget Actual 2015 vs. 2014 Actual 2015 vs. Budget Amount Percentage Amount Percentage City Interfund Utility Taxes $ 1,683,352 $ 1,695,000 $ 1,719,324 $ 35,973 2.1 % $ 24,324 1.4 % Electric 1,901,539 1,873,800 1,648,480 (253,060) (13.3) % (225,320) (12.0) % Natural Gas 786,907 778,900 659,020 (127,887) (16.3) % (119,880) (15.4) % Telephone 916,112 901,400 871,239 (44,873) (4.9) % (30,161) (3.3) % Solid Waste (external) 52,926 52,980 54,854 1,928 3.6 % 1,874 3.5 % YTD Total $ 5,340,837 $ 5,302,080 $ 4,952,918 $ (387,919) (7.3) % $ (349,162) (6.6) % DI.A 7 Page 11 of 64 Quarterly Financial Report Through Q2 -2015 Cable TV Franchise Fees, which are collected quarterly, totaled $455,000 and exceeded budget by $12,000 or 2.7 %. c m 0 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Cable TV Franchise Fee 2015 YTD Budget �- -2015 YTD Actual 2014 Actual 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter DI.A 8 Page 12 of 64 Quarterly Financial Report Through Q2 -2015 Licenses and Permits include business licenses, building permits, plumbing, electric and other licenses and permit fees. Building permit fees and business licenses make up 80% of the annual budgeted revenue in this category. Total building permit revenues collected through June totaled $645,000 compared to a year -to- date budget of $652,000. Building permits issued through June total 385 and compare to 453 issued during the same period in 2014. Major projects contributing to revenues this quarter include building permits for the Merrill Gardens Senior Living development and Lakeland Hills Storage, as well as numerous housing developments — most notably Edgeview and Sonata Hill. $1.6 $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 Building Permits 2015 YTD Budget 2015 YTD Actual 2014 Actual $0.2 $0.0 • Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 9 Page 13 of 64 Quarterly Financial Report Through Q2 -2015 Business license revenues collected through June totaled $138,000 compared to $94,000 collected the same period in 2014; the difference is due to the timing of collections. The graphic below reflects the timing of payments by business owners, where the majority of business license payments are collected during the first two months of the year and the last month of the year. c z 0 I- $240 $220 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 Business Licenses 2015 YTD Budget ���2015 YTD Actual 2014 Actual Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 10 Page 14 of 64 Quarterly Financial Report Through Q2 -2015 Intergovernmental revenues include Grants (Direct & Indirect Federal, State and Local), compact revenue from the Muckleshoot Indian Tribe (MIT), intergovernmental and state shared revenues. Collections to date totaled $2.6 million and were $31,000, or 1.2 %, higher than budget. ntergovernmental June -2015 Revenue 2014 Actual 2015 2015 Budget Actual 2015 vs. 2014 Actual 2015 vs. Budget Amount % Change Amount % Change Federal Grants $ 44,199 $ 103,700 $ 67,622 $ 23,423 53.0 % $(36,078) (34.8) State Grants 25,319 116,300 118,572 93,253 368.3 % 2,272 2.0 Muckleshoot Casino Emerg. 286,050 315,000 296,987 10,937 3.8 % (18,013) (5.7) Intergovernmental Service 23,351 0 8,556 (14,796) (63.4) % 8,556 N/A State Shared Revenues: Streamlined Sales Tax 988,422 1,007,500 980,842 (7,580) (0.8) % (26,658) (2.6) Motor Vehicle Fuel Tax 485,842 449,200 495,526 9,684 2.0 % 46,326 10.3 Criminal Justice - High Crime 0 96,000 96,509 96,509 N/A 509 0.5 Criminal Justice - Population 9,148 8,600 9,742 594 6.5 % 1,142 13.3 Criminal Justice - Special Prog. 34,196 32,800 35,793 1,597 4.7 % 2,993 9.1 State DUI 6,665 6,700 6,560 (105) (1.6) % (140) (2.1) Fire Insurance Tax 77,558 70,000 75,702 (1,855) (2.4) % 5,702 8.1 Liquor Excise 70,980 50,815 83,566 12,586 17.7 % 32,751 64.5 Liquor Profit 325,643 315,170 327,019 1,375 0.4 % 11,849 3.8 Total State Shared: 1,998,453 2,036,785 2,111,259 112,806 5.6 % 74,474 3.7 YTD Total $ 2,377,371 $ 2,571,785 $ 2,602,995 $ 225,624 9.5 % $ 31,210 1 1.2 DI.A 11 Page 15 of 64 Quarterly Financial Report Through Q2 -2015 Charges for Services consist of general governmental services, public safety, development service fees and cultural & recreation fees. Overall, charges for services collected through the first half of 2015 totaled $2.3 million as compared to a year -to -date budget of $1.8 million. Total revenues collected exceeded budget by $501,000, or 28.1 %. General governmental revenues through Q2 -2015 total $44,000 compared to a budget of $51,000. Public safety revenues collected year -to -date totaled $288,000 and compare to a budget of $297,000. Public safety revenues consist of revenues generated for Police Officer extra duty overtime, where officers are contracted for services and reimbursement is made by the hiring contractor. Effective June 2014, public safety revenue also includes reimbursement from the Muckleshoot Indian Tribe (MIT) for a full -time dedicated Police Officer and associated expenditures. Development services fee collections, which primarily consist of plan check fees, totaled $715,000 and exceeded budget by $314,000. Total plan check fees collected in Q2 -2015 totaled $269,000 and include revenues related to several commercial and residential projects including a 5 building Mini Storage in the Lea Hill area, the Merrill Gardens Senior Living development, as well as plans for the Sonata Hill and Edgeview housing developments. $ 0.8 $0.6 Development Service Fees 2015 YTD Budget 2015 YTD Actual 2014 Actual $ 0.4 $ 0.2 $0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 12 Page 16 of 64 Quarterly Financial Report Through Q2 -2015 Culture and recreation revenues totaled $1.2 million and compare to a budget of $1.0 million and prior year collections of $1.1 million. The year- over -year increase in revenues was primarily due to increased collections at the Auburn Golf Course for greens fees, as well as increased revenues collected for league fees. $2.4 $2.2 $2.0 $1.8 $1.6 $1.4 o $1.2 $0.6 $ 0.4 $ 0.2 $0.0 Culture & Recreation 2015 YTD Budget �- -2015 YTD Actual 2014 Actual /' /4(' AA/r OW Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Charges for Services by Type June -2015 Revenue 2014 Actual 2015 2015 Budget Actual 2015 vs. 2014 Actual 2015 vs. Budget Amount Percentage Amount Percentage General Government $ 64,122 $ 50,900 $ 43,704 $ (20,419) (31.8) % $ (7,196) (14.1) % Public Safety 287,781 297,432 287,517 (264) (0.1) % (9,915) (3.3) % Development Services 638,333 401,000 715,082 76,750 12.0 % 314,082 78.3 % Culture & Recreation 1,110,564 1,032,600 1,236,235 125,671 11.3 % 203,635 19.7 % YTD Total $ 2,100,800 $ 1,781,932 1 $2,282,538 $ 181,738 1 8.7 % $ 500,606 28.1 % DI.A 13 Page 17 of 64 Quarterly Financial Report Through Q2 -2015 Fines & Penalties include traffic and parking infraction penalties, criminal fines (including criminal traffic, criminal non traffic and criminal costs) as well as non -court fines such as false alarm fines. Total revenue collected through Q2 -2015 totaled $486,000, compared to a budget of $415,000 and prior year collections of $759,000. Effective June 2014, the Redflex Photo Enforcement Program was cancelled, which is the contributing factor for the year- over -year decline in fines and forfeits revenue. Fines & Forfeits by Type June -2015 Month 2014 Actual 2015 Budget 2015 Actual 2015 vs. 2014 Actual 2015 vs. Budget Amount Percentage Amount Percentage Civil Penalties $ 8,469 $ 8,200 $ 6,069 $ (2,400) (28.3) To $ (2,131) (26.0) To Civil Infraction Penalties 254,404 235,400 273,741 19,337 7.6 To 38,341 16.3 To Redflex Photo Enforcement 309,868 0 1,766 (308,102) (99.4) To 1,766 N/A To Parking Infractions 61,504 56,000 67,867 6,363 10.3 To 11,867 21.2 To Criminal Traffic Misdemeanor 27,942 26,900 29,317 1,374 4.9 To 2,417 9.0 To Criminal Non - Traffic Fines 22,893 24,500 25,129 2,237 9.8 To 629 2.6 To Criminal Costs 27,585 21,300 30,829 3,244 11.8 To 9,529 44.7 To Non -Court Fines & Penalties 46,141 42,400 51,259 5,117 11.1 To 8,859 20.9 To YTD Total $ 758,806 $ 414,700 $ 485,978 $ (272,828) (36.0) To $ 71,278 17.2 To $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 $0.2 $0.0 Fines & Penalties 2015 YTD Budget 2015 YTD Actual 2014 Actual Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 14 Page 18 of 64 Quarterly Financial Report Through Q2 -2015 Miscellaneous revenues primarily consist of income from facility rentals; other sources within this category include investment earnings, contributions & donations and other miscellaneous income including the quarterly purchasing card (P -card) rebate monies. Total revenues collected in this category through Q2 -2015 totaled $448,000 and exceeded budget expectation of $389,000. Although rents and leases revenue ended the quarter slightly below budget expectations, this was offset by higher than anticipated P -Card rebate monies collected through Q2. Miscellaneous Revenues by Type June -2015 Month 2014 Actual 2015 2015 Budget Actual 2015 vs. 2014 2015 vs. Budget Amount Percentage Amount Percentage Interest & Investments $ 18,714 $ 17,900 $ 23,497 $ 4,783 25.6 % $ 5,597 31.3 Rents & Leases 371,808 308,500 301,118 (70,690) (19.0) % (7,382) (2.4) Contributions & Donations 25,789 16,200 20,852 (4,937) (19.1) % 4,652 28.7 Other Miscellaneous Revenue 68,888 46,700 102,512 33,624 48.8 % 55,812 119.5 YTD Total $ 485.200 $ 389.300 $ 447,979 $ (37,220) (7.7) % $ 58,679 15.1 DI.A 15 Page 19 of 64 Quarterly Financial Report Through Q2 -2015 Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. REET revenues collected through Q2 -2015 totaled $2.8 million, compared to budget expectation of $661,000. REET revenues collected in Q2 -2015 totaled $1.2 million compared to $669,000 collected in Q2 -2014. Real estate sales in the City of Auburn this quarter included the sale of several warehouse properties, vacant land, the sale of the Multiplex Theatre at the Outlet Collection - Seattle, as well as the sale of over 350 single family residences. Effective in the Q3 -2015 Financial Report, the REET budget will increase from $1.6 million to $3.0 million per Budget Amendment #2, which was approved by Council in July 2015. Real Estate Excise Tax Revenues June -2015 Month 2014 Actual 2015 Budget 2015 Actual 2015 vs. 2014 2015 vs. Budget Amount Percentage Amount Percentage Jan $ 119,765 $ 79,300 125,089 $ 5,324 4.4 % $ 45,789 57.7 Feb 208,206 107,300 115,287 (92,919) (44.6) % 7,987 7.4 % Mar 118,578 89,000 1,394,226 1,275,648 1075.8 % 1,305,226 1466.5 % Apr 189,771 106,800 423,394 233,624 123.1 % 316,594 296.4 % May 243,472 138,100 345,489 102,017 41.9 % 207,389 150.2 % Jun 236,067 140,500 436,101 200,033 84.7 % 295,601 210.4 % Jul 305,214 194,800 Aug 263,573 157,800 Sep 182,829 124,500 Oct 163,912 144,600 Nov 259,026 185,900 Dec 183,799 131,400 YTD Total $ 1,115,859 $ 661,000 1 $ 2,839,586 $1,723,727 1 154.5 % $ 2,178,586 329.6 % $3.5 $3.0 Real Estate Excise Tax 2015 YTD Budget 2015 YTD Actual 2014 Actual $2.5 I ♦ $2.0 o $1.5 $1.0 $0.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 16 Page 20 of 64 Quarterly Financial Report Through Q2 -2015 Pet Licensing Year -to -date, 2,563 pet licenses have been sold resulting in $73,605 in revenue. For the same period in 2014, 3,063 licenses were sold resulting in $76,930 in revenue. 900 800 °a 700 R, = 600 500 J V 0 400 E 300 g Z 200 100 0 Pet Licenses Issued By Month 2015 vs 2014 -, ° 1 Q m -, < °' Q z 0 Month t 2015 Licenses Issued --t— 2014 Licenses Issued 2015 Budget Goal: $240,000 or more 2015 Revenue = $73,605 2014 Revenue = $76,930 2015 Licenses Sold = 2,563 2014 Licenses Sold = 3,063 License Revenue $14,000 $12,000 $10,000 $ 8,000 $ 6,000 $4,000 $2,000 so Pet Licensing Revenue By Month 2015 Month uo a Q°. 0 0) 0 Z 2015 License Revenue DI.A 17 Page 21 of 64 Quarterly Financial Report Through Q2 -2015 $250,000 $200,000 $150,000 - ar a, Ce °? $100,000 $50,000 - so Cumulative Pet Licensing Revenue & Licenses issued 2015 vs 2014 m v i O m = = aai > a"i -, u- Q -, Q ,.e, 0 z o Month 12,000 10,000 8,000 6,000 4,000 2,000 0 Number of Licenses Issued 2015 License Revenue (L) 2015 License Revenue (L) (Budget Goal: $240,000) +2015 Licenses Issued (R) --♦— 2014 Licenses Issued (R) D I .A 18 Page 22 of 64 Quarterly Financial Report Through Q2 -2015 Enterprise Funds Detailed Working Capital and Fund Balance statements for Enterprise and Internal Service funds can be found in the Appendix at the end of this report. At the end of the second quarter, the Water Utility had operating income of $110,400 compared to operating income of $273,800 in 2014. Thousands $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 so Water Revenues vs Water Sold 2015 vs 2014 • Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 400,000 300,000 u. v 200,000 v 100,000 0 2014 Water Sales ($) 2015 Water Sales ($) 2014 Water Sold (ccf) • 2015 Water Sold (ccf) The Sewer Utility ended the quarter with an operating loss of $17,000 compared to operating income of $81,000 in 2014. The Sewer -Metro Utility ended the period with an operating loss of $174,000 compared to operating income of $1,303,100 for the previous year. The difference is largely due to the timing of the June 2014 payment to King County Metro ($1.2 million), which was not posted until July, resulting in a temporary spike in net income. The Stormwater Utility ended the quarter with $692,300 in operating income which compares to operating income of $759,200 for the same period last year. DI.A 19 Page 23 of 64 Quarterly Financial Report Through Q2 -2015 The Cemetery Fund ended the second quarter with operating income of $68,200 compared to an operating loss of $28,000 for the same period last year. Year to date the number of interments at the Cemetery totals 110 (55 burials, 55 cremations), which compares to 116 (54 burials, 62 cremations) for the same period last year. o z 0 I- $160 $140 $120 $100 $80 $60 $40 $20 Cemetery Operating Revenues & Expenditures By Month 2015 vs 2014 $1,200 - $1,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 Bud. Revenue • 2015 Act. Revenue 2014 Act. Revenue t 2015 Act. Expenses Cumulative Cemetery Revenues & Expenditures 2015 vs 2014 2015 YTD Bud. Revenue t 2015 YTD Act. Revenue 2014 YTD Act. Revenue t 2015 YTD Act. Expenses $400 - $200 - $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DI.A 20 Page 24 of 64 Quarterly Financial Report Through Q2 -2015 Internal Service Funds Operating expenditures within the Insurance Fund represent the premium cost pool that will be allocated monthly to other City funds over the course of 2015. As a result, this balance will gradually diminish each month throughout the year. No significant variances are reported in the Worker's Compensation, Facilities, Innovation & Technology, or Equipment Rental Funds. All funds have sufficient revenues to cover year -to -date expenditures. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http: / /www.auburnwa.gov /. For any questions about this report please contact Shelley Coleman at scolemanPauburnwa.gov. DI.A 21 Page 25 of 64 Investment Type State Investment Pool KeyBank Money Market US Treasury FHLB LAKUTL Total Cash & Investments Investment Mix State Investment Pool KeyBank Money Market US Treasury FFCB FHLB LAKUTL City of Auburn Investment Portfolio Summary June 30, 2015 Purchase Date Various Various 05/04/1990 1/15/2015 9/25/2013 % of Total 83.7% 15.0% 0.0% 0.0% 1.1% 0.2% 100.0% Purchase Price $ 102,070,333 18,275,186 57,750 1,300,000 235,919 $ 121,939,187 Maturity Yield to Date Maturity Various 0.17% Various 0.00% 05/15/2016 5.72% 7/28/2017 0.89% 11/1/2017 1.90% 0.157% Summary Current 6 -month treasury rate Current State Pool rate KeyBank Money Market Blended Auburn rate 0.09% 0.17% 0.00% 0.16% DI.A 22 Page 26 of 64 SALES TAX SUMMARY JUNE 2015 SALES TAX DISTRIBUTIONS (FOR APRIL 2015 RETAIL ACTIVITY) NAICS CONSTRUCTION 236 Constructor! of Buildings 237 Heavy and CM Construction 238 Specialty Trade Contractors TOTAL CONSTRUCTION Overall Change from Previous Year Food Manufacturing 312 Beverage and Tobacco Pratluc6 313 Textile Mills 314 Texte Product Mills 315 Apparel Manufacturing 316 Lealaer antl Allied Pratluc6 321 Wood Product Manufacturing 322 Paper Manufacturing 323 Panting and Reated Support 324 Petroleum antl Coal Prcduc[s 325 Chemical Manufacturing 326 Plastics and RubberPratluc6 327 Nonmelallic Mineral Pratluc6 331 Primary Maal Manufacturing 332 Fabrcated Metal Product Manuf 333 Machinery Manufacturing 334 Computer and Electronic Product 335 Beano Equipment Appliances 336 Transpodation Equipment Man 337 Furniture antl Related Products 339 Miscellaneous Manufactun TOTAL MANUFACTURING Overall Change from Previous Year NAICS 2014 Annual Total 2014 YTD 2015YTD (Nov '13- Oot'14) (Nov '13 -Apr '14) (Nov '14 -Apr '15) 866,060 146,261 741,211 1,753,532 427,371 77,101 354,375 858,847 542,316 97,491 357,077 996,884 13403 2014 Annual Total 2014 YTD 2015 YTD (Nov '13- 088'14) (Nov '13 -Apr '14) (Nov '14- Apr'15) 3,220 8,257 234 2,970 244 15 76,560 5,237 44,114 10,293 5,397 9,844 19,801 1,542 33,900 24,491 18,265 1,179 837,227 21,248 39,052 TRANSPORTATION AND WAREHOUSING 481 Air Transporation 482 Rail Transportation 484 Track Transportation 485 Transit and Ground Passengers 488 Transportation Support 491 PosmI Service 492 Couriers and Messengers 493 Warehousing and Storage TOTAL TRANSPORTATION Overall Change from Previous Year NAICS 1,890 4,216 163 1,411 185 4 38,502 2,478 17,200 5,136 2,614 5,335 9,771 1,339 15,287 11,199 10,873 562 415,649 11,535 20,876 576,227 2014 Annual Total 2014 YTD (Nov .13- 048'14) (Nov '13 -Apr '14) 0 WHOLESALE TRADE 423 Wholesale Trade, Durable Goods 424 Wholesale Trade, Nondurable 425 Wholesale Electronic Markets TOTAL WHOLESALE Overall Change tram Previous Y 8,069 4,740 4 26,786 691 672 29,718 c 70,679 2,215 1,751 0 12,818 483 422 1,961 19,651 33,888 3,210 27,398 1,415 3,192 5,315 3,477 1,376 15,214 12,953 3,642 476 284,243 7,954 24,542 YTD % Ditf 2015YTD (Nov '14 -Apr '15) NAICS AUTOMOTIVE 26.9% 441 Motor Vehicle antl Pans Dealer 26.4% 447 Gasoline Stations 0.8% TOTAL AUTOMOTIVE 101% Overall Change hem Prey /8888 2014 Annual Total 2014 YTD 2015 YTD YTD (Nov '13-Oct.14) (Nov '13- Apr'14) (Nov '14 -Apr '15) % Ditf -27.6% 15.8% -28.2% 2.6% 56.1% -69.0% -12.0% 29.5% 59.3% -72.4% 22.1% -0.4% 54.4% 2.7% -0.5% 15.7% -66.5% -15.4% -31.6% -31.0% 17.6% 24.3% `111) % 518f N/A 101.9% 102.2% N/A 6.5% -71.7% 213.4% 43.0% 2014 Annual Total 2014 YTD 2015YTD YTD (Nov '13- Oot'14) (Nov '13 -Apr '14) (Nov '14- Apr'15) % Oi8f a. WA State Deptd Revenue audit adjustment to sales tax b. WA State Deptd Revenue audit adjustment to sales tax c. WA State Dept of Revenue audit adjustment to sales tax tl. WA State Deptd Revenue audit adjustment to sales retu e. WA State Deptd Revenue audit adjustment to sales tax f. WASPte Dept of Revenue audR adjustment to sales tax 9. WA State Dept of Revenue audit adjustment to sales tax h. WA Slate Deptd Revenue audit adjustment to sales tax i. WA State Dept of Revenue audit adjustment to sales tax 1,024,016 178,054 2,643 1,204,714 499,126 82,581 1,483 583,189 retums for pen. March 2014 (adjustrnent 415,1456 returns for period April 2014 (adjustrnent $10,242). tms fa pen. August 2014 ( adustment $25,146). ms for pen. November 2014 (adjustment $5,167). retums for period December 2014 (adjustment - $2382). retums for period January 2015 ( adustment $4,464). retums for pen. February 2015 (adjustment $11,845). retums for period February 2015 (adjustment $9,355). returns for period March 2015 (adjustment $17,839). Prepared . bbyyAubam Finances /e ment 513,620 94,522 1,061 609,203 24014 2.9% 14.5% -28.5% 4.5% 3,062,768 b 246,636 3,309,404 1,422,563 124,420 1,548,982 1,663,157 114,938 1,778,094 231,112 16.9% -7.6% 149% NAICS RETAIL TRADE 2014 Annual Total 2014 YTD 2015 YTD YTD (Nov 1 3- 008'14) (Nov '13- Apr'14) (Nov '14 -Apr '15) % 442 443 444 445 446 448 451 452 453 454 antl Home Furnishings Electronics and Appliances Building Material and Galen Foal antl Beverage Stores H.Ith and Personal Care Store Clothing antl 40. 866 nes Spa-Ong Goods, Hobby, Boot¢ General Merchandise Stores Miscellaneous Store Retailers Nonstore Retailers TOTAL RETAIL TRADE Orem% from Pro1481/8 Y 254,103 236,955 502,470 352,552 187,715 1,008,978 212,015 955,479 587,784 381,876 4,679,929 122,466 151,747 218,815 165,897 95,263 504,835 118,600 476,544 a 282,461 179,055 2,315,684 125,079 154,707 263,434 176,816 110,685 8 540,406 111,217 486,493 315,841 199.273 2,483,952 109,208 2.1% 2.0% 20.4% 6.6% 16.2% 7.0% 5.2% 2.1% 11.8% 11.3% s.3% NAICS Mk. 2014 Annual Total 2014 YTD 2015 YTD YTD (Nov '13- 088'14) (Nov '13- Apr'14) (Nov '14 -Apr '15) % lAff 51' 52' 53. Information Finance and Insurance Real Estate, Rental, Leasing 541 Professional, Scleno,, Tech 551 Company Management 56' Admin. Supp., Remed Svcs 611 Educational Services 62' Heal Care Social Assislance 71' Are and Ente.mment 72' Accommodation antl Food Svcs 81' Other services 92' Pudic Administration TOTAL SERVICES Orenee from Pro1481/8 Y NAICS 000 111 -115 211 -221 999 MISCELLANEOUS Unknown Agriculture, Forestry, F6hing Mining 8 Mimes Unclassifiable Establishments TOTAL SERVICES Overall Change from ',revives Yea, 486,856 87,574 314,900 216,494 43 350,417 49,123 66,359 157,908 1,066,580 425,896 99,676 3,321,827 247,912 42,233 153,382 98,685 26 191,835 21,939 15,668 99,398 500,085 203,891 45,019 1,820,072 244,720 45,666 160,421 98,469 9,215 155,861 34,762 51,067 91,709 546,677 228,313 60,340 1,728,219 104146 4, i -1.3% 10.5% 4.6% -0.2% 354266% -18.8% 9 58.5% 225.9% -7.7% 9.3% 12.0% 34.0% 4✓% 2014 Annual Total 2014 YTD 2015 YTD YTD (50013- 088'14) (Nov '13- Apr'14) (Nov '14 -Apr '15) % 0188 7,488 28,687 83,442 119,617 2,230 9,734 63,579 75,543 1,897 10,295 18,776 30,968 44,535 N/A -14.9% 5.8% -70.5% d90% GRAND TOTAL 15 622 791 7 596 196 8 091 609 Page 27 of 64 23 The following table presents the Working Capital Statement for each of the City's Enterprise and Internal Service funds. Working Capital is generally defined as the difference between current assets and current liabilities. WORKING CAPITAL M. WATER SEWER SEWER METRO STORM SOLID WASTE AIRPORT CEMETERY INSURANCE WORKER'S COMPENSATION COMPENSATION EACILES ITI &TECHNOLOGY EQUIPMENT RENTAL OPERATING REVENUES Charges For Service $ 5,878,656 $ 3,892,188 $ - $ 4,607,516 $ 6,700,094 $ 8,143 $ 591,201 $ - $ 387,527 $ - $ - $ - InterfurdChargesForService - - - - - - - - - 1,723,644 2,677,391 1,735,388 Sewer Metro Service Revenue - - 7,824.8 - - - - - - - - Rents, Ireses, Concessions, &Other - - - - - 330,841 - - - 42,145 69,869 TOTALOPERATINGREVENUES $ 5,878,656 $ 3,892,188 $ 7,821,868 $ 4,607,516 $ 6,700,044 $ 338.983 $ 591,201 $ - $ 387,527 $ 1,765,789 $ 2,747,260 $ 1,735,388 OPERATING EXPENSES Salaries &Wages $ 1,226,317 $ 812,738 $ - $ 4178,146 $ 198,859 $ 13,571 $ 217,744 $ - $ 39,662 $ 278,391 $ 731,034 $ 309,802 Benefits 560,287 371,002 - 533,421 91,506 4,886 101,376 - 82,386 141,825 305,931 143,252 Supplies 120,058 58,283 - 29,605 20,724 - 93,908 - - 56,207 166,440 462,223 Other Service Charges 1,732,241 1,107,819 - 605,151 579,536 218,476 51,558 592,373 129,296 534,638 1,268,369 149,381 Intergovernmental Services - 2,847 - 62,150 105,361 - - - - - - - Waste Management Payments r - - - - 5,124,744 - - - - - - SewerMetmServices Interfurd Operating Rentals &Supplies - 645 ,437 - 485,398 7,995,845 - - 667,967 - 52,469 - - - 32,730 - - - - - 57,408 - 81,078 108,514 Other Expenses Depredation &Amortization - 4483,901 - 1,071,104 - - - 838.732 - 9,410 - 237,956 - 25,719 - - - - - - - 309,120 6 TOTAL OPERATING EXPENSES $ 5,768,241 $ 3,909,191 $ 7,995,845 $ 3,915,172 $ 6,182,609 $ 474,889 $ 523,035 $ 592,373 $ 251,344 $ 1,068,472 $ 2,861,973 $ 1,610,7,610,718 OPERATING INCOME (LOSS) $ 110,414 $ (17,003) $ (173,977) $ 692,344 $ 517,435 $ (135,936) $ 68,167 $ (592,373) $ 136,183 $ 697,317 $ 014,712) $ 124,670 NON -OPERATING REVENUES 6 EXPENSES Interest Revenue $ 10,081 $ 8,910 $ 563 $ 13,271 $ 1,585 $ 583 $ 279 $ 579 $ 327 $ 1,644 $ 2,319 $ 3,826 Contributions - - - 1,059,017 29,245 7,105 150 - - - - 816 Other Non -Operating Revenue 94,352 36,137 - 32,596 293 (5,252) (0) - - - 500 96,294 Gain (loss) On Sale Of Fixed Assets - - - 10,000 - - - - - - - (27,929) Debt Service Interest Other Non-Operating Expense (49,854) - (16,217) - - - - - - - 08338) - 01,134) - - - - - - - - - TOTAL NON-OPERATING REVENUES& EXPENSES $ 54,580 $ 28,830 $ 563 $ 1,114,885 $ 31,110 $ (15,902) $ 00,705) $ 579 $ 327 $ 1,644 $ 2,819 $ 73,007 PLUS ITEMS NOT AFFECTING WORKING CAPITAL Depredation $ 1,483,901 $ 1,071,104 $ - $ 838,732 $ 9,410 $ 237,956 $ 25,719 $ - $ - $ - $ 309,120 $ 437,546 NET WORKING CAPITAL FROM OPERATIONS $ 1,648,896 $ 4082,932 $ (173,414) $ 2,645,961 $ 557,955 $ 86,148 $ 83,180 $ (591,794) $ 136,510 $ 698,961 $ 197,226 $ 635,223 Increase In Contributions - System Development $ 349,330 $ 280,350 $ - $ 261,694 $ - $ - $ - $ - $ - $ - $ - $ - IncreaselnContributions - Area Assessments 500 6,891 - - - - - - - - - IncreaselnContributions - Other Governments Increase In Contributions -Other Funds - - - - - - - - - - - - - - - - - - - - - - - - Increase In Contributions - FAA - - - - - - - - - - - Proceeds of Debt Activity 68,973 - - - - - - - - - - OperatingTransfers ln - - - 378.345 - - - - - - - Increase In Restricted Net Assets 20,744 - - - - 3,732 - - - - - Decrease In long -Tenn Receivables Increase In Deferred Credits - - 45,000 - - - - - - - - 15,219 - - - - - - - - - - TOTAL RESOURCES OTHER THAN OPERATIONS $ 439,547 $ 332,242 $ - $ 640,039 $ - $ 18,951 Net Change In Restricted Net Assets $ 420,668 $ 137,976 $ - $ 192,316 $ - $ 2,448 $ - $ - $ - $ - $ - $ (43,864) Increase In Fixed Assets - Salaries 150,677 74,672 - 160,580 - - - - - - - IncreaselnFixedAssets - Benefits 61,788 32,366 - 66,350 - - - - - - - IncreaselnFixedAsse ts - Site Improvements 26,051 - - - - - - - - - - IncreaselnFixedAssets - land IncreaselnFixedAssets - Equipment - - - - - - 250,000 - - - - - - - - - - - - - - 257,702 518,286 Increase In Fixed Assets - Construction 4540,650 4396,757 - 3,064,836 - IncreaselnFixedAssets - Other - - - - - - - - - - - OperatingTransfers Out 154,033 144,892 - 124,000 - - - - - 290,229 - 179,420 Debt Service Principal 522,831 28 8,262 - - - - - - - - - TOTAL USES OTHER THAN OPERATIONS $ 2,876,698 $ 2,074,925 $ - $ 3,858,082 $ - $ 288,902 $ - $ - $ - $ 290,229 $ 257,702 $ 653,842 NET CHANGE IN WORKING CAPITAL $ (788,255) $ (659,751) $ (173,414) $ (572,082) $ 557,955 $ (183,803) $ 83,180 $ (591,794) $ 136,510 $ 408,732 $ (60,475) $ 0 9618) BEGINNING WORKING CAPITAL - January 1,2015' 14,027,406 13,346,282 2,100,400 16,051,080 2,491,724 756938 294,547 1,654,057 440,004 2,194,912 3,543,327 5,844,690 ENDING WORKING CAPITAL -June 30,2015 13,239,150 12,686,531 1,926,986 5,478,999 3,049,679 573,135 377,727 4062,263 576514 2,603,644 3,482,852 5,826,072 NET CHANGE IN WORKING CAPITAL $ (788,255) $ (659,751) $ (173,414) $ (572,082) $ 557,955 $ (183,803) $ 83,180 $ (591,794) $ 136,510 $ 408,732 $ (60,475) $ (1 9618) June's Waste Management payment in the amount of $ 844,060 has been added to the Solid Waste Fund and is reflected in the ErdiT,`r�ipo kI Capital balans. DI.A Theamorc Fands eeginni�vwrking capital ha: peen retard reflecting a prior period adjustment of $200,000 as the PPger a::Y 4of then rc :int Hi loa The following table provides an analysis of each of the City's Enterprise and Intemal Service funds - showing 2015 revenues and expenditures by fund. FUND BALANCE ENTERPRISE FUNDS INTERNAL SERVICE FUNDS SEWER SEWER METRO STORM SOLID WASTE AIRPORT CEMETERY INSURANCE WORKER'S COMPENSATION FACILITIES INNOVATION &TECHNOLOGY EQUIPMENT RENTAL OPERATING REVENUES Charges For Service InterfundChargesForService Sewer Metro Service Revenue Rents, leases, Concessions, & Other $ 5,878,656 - - - $ 3,892,188 - - - $ - - 7,821,868 - $ 4,607516 - - - $ 6,700,044 - - - $ 8,143 - - 330,841 $ 591,201 - - - $ - - - - $ 387,527 - - - $ - 1,723,644 - 42,145 $ - 2,677391 - 69,869 $ - 1,735388 - - TOTAL OPERATINGREVENUES $ 5,878,656 $ 3,892,188 $ 7,821,868 $ 4,607516 $ 6,700,044 $ 338,983 $ 591,201 $ - $ 387527 $ 1,765,789 $ 2,747,260 $ 1,735388 OPERATING EXPENSES Administration Operations & Maintenance Waste Management Payments' SewerMetroServices Depreciation &Amortization $ 1,414,096 2,870,244 - - 1,483,901 $ 1,100,459 1,737,628 - - 1,071,104 $ - - - 7,995,845 - $ 1599,032 1,477,408 - - 838,732 $ 321,107 727348 5,124,744 - 9,410 $ 231,461 5,472 - - 237,956 $ 130,376 366,940 - - 25,719 $ 592,373 - - - - $ - 251344 - - - $ - 1,068,472 - - - $ - 2552,852 - - 309,120 $ 370,163 803,009 - - 437546 TOTAL OPERATING EXPENSES $ 5,768,241 $ 3,909,191 $ 7,995,845 $ 3,915,172 $ 6,182,609 $ 474,889 $ 523,035 $ 592,373 $ 251344 $ 1,068,472 $ 2,861,973 $ 1,610,718 OPERATING INCOME (LOSS) $ 110,414 $ (17,003) $ (173,977) $ 692,344 $ 517,435 $ (135,906) $ 68,167 $ (592,373) $ 136,183 $ 697317 $ (114,712) $ 124,670 NON - OPERATING REVENUES & EXPENSES Interest Revenue Other Non- Operating Revenue Gain (loss) On Sale Of Fixed Assets Other Non - Operating Expense $ 10,081 94,352 - (49,854) $ 8,910 36,137 - (16,217) $ 563 - - - $ 13,271 1,091,613 10,000 - $ 1585 29,525 - - $ 583 1,853 - (18,338) $ 279 150 - (11,134) $ 579 - - - $ 327 - - - $ 1,644 - - - $ 2,319 500 - - $ 3,826 97,111 (27,929) TOTAL NON-OPERATING REVENUES & EXPENSES $ 54,580 $ 28,830 $ 563 $ 1,114,885 $ 31,110 $ (15,902) $ (10,705) $ 579 $ 327 $ 1,644 $ 2,819 $ 73,007 INCOME(LOSS)BEFORE CONTRIBUTIONS& TRANSFERS $ 164,994 $ 11,828 $ (173,414) $ 1,807,229 $ 548,545 $ (151,808) $ 57,461 $ (591,794) $ 136,510 $ 698,961 $ (111,894) $ 197,677 Contributions Tmnsfers In Transfers Out $ 349,830 - (154,033) $ 287,242 - (144,892) $ - - - $ 261,694 378,345 (124,000) $ - - - $ - - - $ - - - $ - - - $ - - - $ - - (290,229) $ - - - $ - - (179,420) TOTAL CONTRIBUTIONS & TRANSFERS $ 195,797 $ 142,350 $ - $ 516,039 $ - $ - $ - $ - $ - $ (290,229) $ - $ (179,420) CHANGE IN FUND BALANCE $ 360,791 $ 154,177 $ (173,414) $ 2,323,268 $ 548,545 $ (151,808) $ 57,461 $ (591,794) $ 136,510 $ 408,732 $ (111,894) $ 18,258 BEGINNING FUND BALANCE - January 1, 2015 $ 71320,494 $ 78,284,418 $ 2,100,400 $ 55,862,809 $ 2,560,449 $ 9,662,547 $ 870,261 $ 1,654,057 $ 434,859 $ 2,152,736 $ 4,826,830 $ 10,864,439 ENDING FUND BALANCE - June 30, 2015 $ 71,681,285 $ 78,438,595 $ 1,926,986 $ 58,186,078 $ 3,108,994 $ 9,510,739 $ 927,722 $ 1,062,263 $ 571369 $ 2,561,468 $ 4,714,936 $ 10,882,696 June's Waste Management payment in the amount of $844,060 has been added to the Solid Waste Fund and is reflected in Ending Fund Balance. DI.A Page 29 of 64 25 DI.B AuBuRN ITY Cdr • wAs - IENGTo Agenda Subject: Resolution No. 5163 Department: CD & PW AGENDA BILL APPROVAL FORM Date: August 17, 2015 Attachments: Budget Impact: Resolution Na 5163 $0 Public Way Agreement Na 15 -22 Administrative Recommendation: For discussion only. Background Summary: Sprint Communications Company L.P. has applied for a new Public Way Agreement No. 15 -22 for existing facilities located in City right -of -way along the UPRR right -of- way. The previous agreement, ROW Use Permit # 87 -02, Recording Number 8710231121, that authorized these facilities is expired. The existing facilities consist of fiber optic cable that occupies 542 linear feet of City right -of -way through six road crossings. These facilities currently do not serve any customers inside of the city limits. A Public Way Agreement is required when a commercial utility desires to occupy specific space in the City's right -of -way for the sole purpose of providing commercial utility services to areas outside the City. The Public Way Agreement was reviewed by city staff and the applicant and it was determined that this agreement meets the needs of the City and the applicant for the existing facilities and their current use. Resolution No. 5163 authorizes execution of Public Way Agreement No. 15 -22 and allows Sprint's existing facilities to remain in the right -of -way per the terms and conditions set forth in the agreement upon completion of the requirements of Section 5. Acceptance of Public Way Agreement, by Sprint. Reviewed by Council Committees: Councilmember: Meeting Date: August 24, 2015 Staff: Snyder Item Number: DI.B AUBURN * MORE THAN YOU IMAGINED Page 30 of 64 DI.B AUBURN * MORE THAN YOU IMAGINED Page 31 of 64 RESOLUTION NO. 5163 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE PUBLIC WAY AGREEMENT NO. 15 -22 BETWEEN THE CITY OF AUBURN AND SPRINT COMMUNICATIONS COMPANY L.P. WHEREAS, Sprint Communications Company L.P. ( "Sprint ") has applied to the City for a non - exclusive Public Way Agreement for the right of entry, use, and occupation of certain public rights -of -way within the City of Auburn, expressly to install, construct, erect, operate, maintain, repair, relocate and remove its facilities in, on, upon, along and /or across those right(s) -of -way; and WHEREAS, the City has reviewed Sprint's application and determined that the location of Sprint's facilities within the requested rights -of -way is in the best interest of the City and the citizens of Auburn, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, KING COUNTY, WASHINGTON, HEREBY RESOLVES as follows: Section 1. The Mayor of the City of Auburn and the Auburn City Clerk are hereby authorized to execute a Public Way Agreement between the City of Auburn and Sprint, a copy of which is attached hereto, marked as Exhibit "1" and incorporated herein by this reference. Resolution No. 5163 Public Way Agreement No. 15 -22 July 14, 2015 Page 1 of 2 DI.B Page 32 of 64 Section 2. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 3. This resolution shall be in full force and effect upon passage and signatures hereon. Dated and Signed this day of , 2015. CITY OF AUBURN NANCY BACKUS MAYOR ATTEST: Danielle E. Daskam, City Clerk APPROVED AS TO FORM: Daniel B. Heid, City Attorney Resolution No. 5163 Public Way Agreement No. 15 -22 July 14, 2015 Page 2of2 D I . B Page 33 of 64 CITY OF AUBURN PUBLIC WAY AGREEMENT WITH SPRINT COMMUNICATIONS COMPANY L.P. This Public Way Agreement is entered into by and between the City of Auburn, Washington, a municipal corporation ( "City ") and Sprint Communications Company L.P., a Delaware limited partnership ( "Grantee "). WHEREAS, Grantee has applied to the City for a non - exclusive Public Way Agreement for the right of entry, use, and occupation of certain public right(s) -of -way within the City of Auburn, expressly to install, construct, erect, operate, maintain, repair, relocate and remove its facilities in, on, upon, along and /or across those right(s) -of -way; and WHEREAS, the City has reviewed the Grantee's application and determined that the location of Grantee's facilities within the requested right(s)- of -way is in the best interest of the City and the citizens of Auburn, NOW, THEREFORE, in consideration of the mutual benefits and conditions set forth below, the parties hereto agree as follows: Section 1. Notice A. Except as defined in the respective filing and emergency work provisions of Sections 5 and 7 herein, all notices, requests, demands and other communications shall be in writing and are effective three (3) days after deposited in the U.S. mail, certified and postage paid, or upon receipt if personally delivered or sent by next - business -day delivery via a nationally recognized overnight courier to the addresses set forth below. City or Grantee may from time to time designate any other address for this purpose by providing written notice to the other party effective thirty (30) days after the provision thereof. City: Engineering Aide, Community Development and Public Works Department - Transportation City of Auburn 25 West Main Street Auburn, WA 98001 -4998 Telephone: (253) 931 -3010; Fax: (253) 931 -3053 Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 1 DI.B Page 34 of 64 with a copy to: Grantee: With a copy to: City Clerk City of Auburn 25 West Main Street Auburn, WA 98001 -4998 Sprint Real Estate Mailstop: KSOPHT0101 -Z2040 6391 Sprint Parkway Overland Park, KS 66251 -2650 Attn: Charlene White Voice: (913) 794 -8199; Fax (913) 523 -8353 Sprint Nextel Law Department Mailstop: KSOPHT0101 -Z2020 6391 Sprint Parkway Overland Park, KS 66251 -2020 Attn: Real Estate Attorney B. Any changes to the above - stated Grantee information shall be sent to the City's Engineering Aide, Public Works Department — Transportation Division, with copies to the City Clerk, referencing the title and date of this agreement. C. The Grantee's voice and fax telephone numbers shall be staffed at a minimum of between 8:00 AM and 5:00 PM Pacific Time, Monday through Friday, excepting holidays. Grantee may be reached at any time through its Network Operations Command Center at 800 - 877 -6627, Option 5. Section 2. Grant of Right to Use Public Way A. Subject to the terms and conditions stated herein, the City grants to the Grantee general permission to enter, use, and occupy the right(s) -of -way specified in Exhibit "A," attached hereto (the "Public Way "). B. The Grantee is authorized to install, remove, construct, erect, operate, maintain, relocate and repair the facilities specified in Exhibit "B," attached hereto, and all necessary appurtenances thereto, ( "Grantee Facilities ") for provision of lawful communications, including, without limitation, long distance voice and data communications and other lawful communications as disclosed to Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 2 D I . B Page 35 of 64 the City from time to time ( "Grantee Services ") in, along, under and across the Public Way, for the sole purpose of providing commercial utility or telecommunications services to persons or areas outside the City. C. This Public Way Agreement does not authorize the use of the Public Way for any facilities or services other than Grantee Facilities and Grantee Services, and it extends no rights or privilege relative to any facilities or services of any type, including Grantee Facilities and Grantee Services, elsewhere within the City. D. This Public Way Agreement is non - exclusive and does not prohibit the City from entering into other agreements, including Public Way Agreements, impacting the Public Way, unless the City determines that entering into such agreements interferes with Grantee's rights under this Agreement. E. Except as explicitly set forth herein, this Public Way Agreement does not waive any rights that the City has or may hereafter acquire with respect to the Public Way or any other City roads, rights -of -way, property, or any portions thereof. This Public Way Agreement shall be subject to the power of eminent domain, and in any proceeding under eminent domain, the Grantee acknowledges its use of the Public Way shall have no value. F. The City reserves the right to change, regrade, relocate, abandon, or vacate the Public Way. If, at any time during the term of this Public Way Agreement, the City vacates any portion of the Public Way, the City may reserve an easement for Grantee Facilities within that vacated portion, pursuant to RCW 35.79.030, within which the Grantee may continue to operate the Grantee Facilities under the terms of this Public Way Agreement for the remaining period set forth under Section 3. G. The Grantee agrees that its use of Public Way shall at all times be subordinated to and subject to the City and the public's need for municipal infrastructure, travel, and access to the Public Way, except as may be otherwise required by law. H. Should the Grantee seek to use the Public Way to provide services, including Grantee Services, to City residents or businesses, the Grantee shall apply for, obtain, and comply with the terms of a City franchise agreement for such use. Entry into a City franchise agreement shall automatically terminate this Agreement. Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 3 DI.B Page 36 of 64 Section 3. Term of Agreement A. This Public Way Agreement shall run for a period of five (5) years, from the date of execution specified in Section 5. B. Renewal Option of Term: The Grantee may renew this Public Way Agreement for an additional five (5) year period upon submission and approval of the application specified under ACC 20.04.120, as it now exists or is amended, within the timeframe set forth therein (currently 180 to 120 days prior to expiration of the then - current term). Any materials submitted by the Grantee for a previous application may be considered by the City in reviewing a current application, and the Grantee shall only submit those materials deemed necessary by the City to address changes in the Grantee Facilities or Grantee Services, or to reflect specific reporting periods mandated by the ACC. C. Failure to Renew Public Way Agreement — Automatic Extension. If the Parties fail to formally renew this Agreement prior to the expiration of its term or any extension thereof, the Agreement automatically continues month to month until renewed or until either party gives written notice at least one hundred eighty (180) days in advance of the intent not to renew the Agreement. Section 4. Definitions For the purpose of this agreement: "ACC" means the Auburn City Code. "Emergency" means a condition of imminent danger to the health, safety and welfare of Persons or property located within the City including, without limitation, damage to Persons or property from natural consequences, such as storms, earthquakes, riots, acts of terrorism or wars. "Maintenance or Maintain" shall mean examining, testing, inspecting, repairing, maintaining and replacing the existing Grantee Facilities or any part thereof as required and necessary for safe operation. "Relocation" means permanent movement of Grantee facilities required by the City, and not temporary or incidental movement of such facilities, or other revisions Grantee would accomplish and charge to third parties without regard to municipal request. Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 4 D I . B Page 37 of 64 "Rights -of -Way" means the surface and the space above and below streets, roadways, highways, avenues, courts, lanes, alleys, sidewalks, easements, rights -of -ways and similar public properties and areas. Section 5. Acceptance of Public Way Agreement A. This Public Way Agreement, and any rights granted hereunder, shall not become effective for any purpose unless and until Grantee files with the City Clerk (1) the Statement of Acceptance, attached hereto as Exhibit "C ", (2) all verifications of insurance coverage specified under Section 15, (3) the financial guarantees specified in Section 16 (collectively, "Public Way Acceptance "), and (4) payment of any outstanding application fees per the City fee schedule. The date that the above conditions are completed as determined by the City shall be the effective date of this Public Way Agreement. B. Should the Grantee fail to complete the requirements of Section 5 Paragraph A within thirty (30) days after the effective date of the resolution approving the Public Way Agreement, said agreement will automatically terminate and shall be null and void. Section 6. Construction and Maintenance A. The Grantee shall apply for, obtain, and comply with the terms of all permits required under ACC Chapter 12.24 for any work done upon Grantee Facilities. Grantee shall comply with all applicable City, State, and Federal codes, rules, regulations, and orders in undertaking such work, which shall be done in a thorough and proficient manner. B. Grantee agrees to coordinate its activities with the City and all other utilities located within the Public Way. C. The City expressly reserves the right to prescribe how and where Grantee Facilities shall be installed within the Public Way and may from time to time, pursuant to the applicable sections of this Public Way Agreement, require the removal, relocation and /or replacement thereof in the public interest and safety at the expense of the Grantee. D. Before commencing any work within the Public Way, the Grantee shall comply with the One Number Locator provisions of RCW Chapter 19.122 to identify existing utility infrastructure. Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 5 DI.B Page 38 of 64 Section 7. Access, Repair and Emergency Work In the event of an emergency, the Grantee may commence such repair and emergency response work as required under the circumstances, provided that the Grantee shall notify the City telephonically during normal business hours (at 253 - 931 -3010 and during non — business hours at 253 - 288 -2121) as promptly as possible before such repair or emergency work commences, and in writing as soon thereafter as possible. Such notification shall include the Grantee's emergency contact phone number for the corresponding response activity. For any emergency or after normal business hour issues involving the Grantee's facilities which requires the Grantee's immediate response the City shall contact the Grantee at its Network Operations Command Center(NOCC) - (800) 877- 6627 option 1, which is operated 24 hours a day, seven days a week. The City may act, at any time, without prior written notice in the case of emergency, but shall notify the Grantee in writing as promptly as possible under the circumstances of the nature of the emergency and the actions taken to address it. Section 8. Damages to City and Third -Party Property Grantee agrees that should any of its actions under this Public Way Agreement impair or damage any City property, survey monument, or property owned by a third - party, Grantee will restore, at its own cost and expense, said property to a safe condition. Such repair work shall be performed and completed to the satisfaction of the City Engineer. Section 9. Location Preference A. Any structure, equipment, appurtenance or tangible property of a privately -owned utility, other than the Grantee's, which was installed, constructed, completed or in place prior in time to Grantee's application for a permit to construct or repair Grantee Facilities under this Public Way Agreement shall have preference as to positioning and location with respect to the Grantee Facilities. However, to the extent that the Grantee Facilities are completed and installed prior to new or additional structures, equipment, appurtenances or tangible property of an earlier privately -owned utility being installed or completed, then the Grantee Facilities shall have priority. These rules governing preference shall continue in the event of the necessity of relocating or changing the grade of any such City road or right -of -way. A relocating utility shall not necessitate the relocation of another utility that otherwise would not require relocation. This Section shall not apply to Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 6 DI.B Page 39 of 64 any City facilities or utilities that may in the future require the relocation of Grantee Facilities. Such relocations shall be governed by Section 11. B. Grantee shall maintain a minimum underground horizontal separation of five (5) feet from City water facilities and ten (10) feet from above- ground City water facilities; provided, that for development of new areas, the City, in consultation with Grantee and other utility purveyors or authorized users of the Pubic Way, will develop guidelines and procedures for determining specific utility locations. Section 10. Grantee Information A. Grantee agrees to supply, at no cost to the City, such information as the City Engineering Aide finds necessary to coordinate municipal functions with Grantee's activities in the Public Way and to fulfill any municipal obligations under state law. Said information shall include, at a minimum; as -built drawings of Grantee Facilities; installation inventory; and maps and plans showing the location of existing or planned facilities within the City. Said information shall be provided either in hard copy and /or electronic format as requested by the City, compatible with the City's then - current database system, including the City's geographic information Service (GIS) data base. Grantee shall keep the City Engineering Aide informed of its long -range plans for coordination with the City's long -range plans. B. The parties understand that Washington law limits the ability of the City to shield from public disclosure any information given to the City. Grantee shall clearly mark any information that it provides to the City as "Proprietary" information if Grantee believes that disclosure of that information would be exempt under the trade secrets exemption in RCW 42.56.270. The City agrees that if it receives a request for Grantee's proprietary information, it will initially assert the exemption under 42.56.270, and will notify Grantee of the request. The City shall not initiate legal action to prevent disclosure of Grantee's proprietary information. If a requestor files a lawsuit to compel disclosure, Grantee agrees to defend the action at Grantee's sole expense. Additionally, Grantee shall indemnify and hold harmless the City for any loss or liability for costs for attorneys' fees because of non - disclosures requested by Grantee under Washington's open public records law, provided reasonable notice and opportunity to defend was given to Grantee or Grantee is made aware of the pending of a request or claim. Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 7 DI.B Page 40 of 64 Section 11. Relocation of Grantee Facilities A. Except as otherwise so required by law, Grantee agrees to relocate, remove, or reroute its facilities at its sole expense and liability and at no expense or liability to the City, except as may be required by RCW Chapter 35.99, or as further provided by Title 20 ACC, as ordered by the City Engineer, and upon sixty (60) days written notice from the City. Pursuant to the provisions of Section 14, Grantee agrees to defend, indemnify costs, including attorney fees and hold the City harmless from any customer or third -party claims for service interruption or other losses in connection with any such change, relocation, abandonment, or vacation of the Public Way. B. In the event that the Public Way shall become a Primary State Highway as provided by law, the State Department of Transportation may order the Grantee to perform or undertake, at its sole expense, changes to the location of Grantee Facilities so that the same shall not interfere with such state highway and so that such facilities shall conform to such new grades or routes as may be established. C. If a readjustment or relocation of the Grantee Facilities is necessitated by a request from a party other than the City, that party shall pay the Grantee the actual costs thereof. Section 12. Abandonment and or Removal of Grantee Facilities A. Within one hundred and eighty (180) days of Grantee's permanent cessation of use of the Grantee Facilities, or any portion thereof, the Grantee shall, at the City's discretion, either abandon in place or remove the affected facilities. B. The parties agree that those conduits specified in Exhibit B, attached hereto, have been abandoned by the Grantee and are the property of the City. The City has all responsibility for the operation and maintenance of those conduits. In consideration of the Grantee releasing all claims it may have to the ownership of the conduits, the City grants the Grantee the right to use one conduit within each of the multi- conduit bundle shown in Exhibit B for the period of this Public Way Agreement, including any renewals thereof under Section 3. C. The parties expressly agree that this Section shall survive the expiration, revocation or termination of this Public Way Agreement. Section 13. Undergrounding Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 8 DI.B Page 41 of 64 A. The parties agree that this Public Way Agreement does not limit the City's authority under federal law, state law, or the ACC, to require the undergrounding of utilities. B. Whenever the City requires the undergrounding of aerial utilities in the Public Way, the Grantee shall underground the Grantee Facilities in the manner specified by the City Engineer, and where other utilities are present and involved in the undergrounding project, Grantee shall only be required to pay its fair share of common costs borne by all utilities, in addition to the costs specifically attributable to the undergrounding of Grantee Facilities. Common costs shall include necessary costs for common trenching and utility vaults. Fair share shall be determined in comparison to the total number and size of all other utility facilities being undergrounded. Section 14. Indemnification and Hold Harmless A. The Grantee shall defend, indemnify, and hold the City and its officers, officials, agents, employees, and volunteers harmless from any and all costs, claims, injuries, damages, losses, suits, or liabilities of any nature including reasonable attorneys' fees arising out of or in connection with the Grantee's performance under this Public Way Agreement, except to the extent such costs, claims, injuries, damages, losses, suits, or liabilities are caused by the sole negligence or willful misconduct of the City. B. The Grantee shall indemnify and hold the City harmless from any liability arising out of or in connection with any damage or loss to the Grantee Facilities caused by maintenance and /or construction work performed by, or on behalf of, the City within the Public Way or any other City road, right -of -way, or other property, except to the extent any such damage or loss is directly caused by the sole negligence of the City. C. The Grantee acknowledges that neither the City nor any other public agency with responsibility for firefighting, emergency rescue, public safety or similar duties within the City has the capability to provide trench, close trench or confined space rescue. The Grantee, and its agents, assigns, successors, or contractors, shall make such arrangements as Grantee deems fit for the provision of such services. The Grantee shall hold the City harmless from any liability arising out of or in connection with any damage or loss to the Grantee for the City's failure or inability to provide such services, and, pursuant to the terms of Section 14(A), the Grantee shall indemnify the City against any and all third- Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 9 DI.B Page 42 of 64 party costs, claims, injuries, damages, losses, suits, or liabilities based on the City's failure or inability to provide such services. D. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Grantee and the City, its officers, officials, employees, and volunteers, the Grantee's liability hereunder shall be only to the extent of the Grantee's negligence or willful misconduct. It is further specifically and expressly understood that the indemnification provided herein constitutes the City's and Grantee's waivers of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of the indemnifications set forth in this Section 14. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. E. Acceptance by the City of any work performed by the Grantee shall not be grounds for avoidance of this section. Section 15. Insurance A. The Grantee shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Grantee, its agents, representatives, or employees in the amounts and types set forth below: 1. Automobile Liability insurance covering all owned, non - owned, hired, and leased vehicles with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and a $2,000,000 products - completed operations aggregate limit. Coverage shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products - completed operations, and personal injury and advertising injury and liability assumed under an insured contract. Aggregate limit of $2 Million can be satisfied by Excess Liability at $1 Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 10 DI.B Page 43 of 64 Million. There shall be no endorsement or modification of the Commercial General Liability insurance for liability arising from explosion, collapse, or underground property damage. The City shall be named as an additional insured under the Grantee's Commercial General Liability insurance policy with respect to the work performed under this Public Way Agreement using ISO Additional Insured Endorsement CG 20 10 10 01 and Additional Insured - Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing equivalent coverage. 3. Professional Liability insurance with limits no less than $1,000,000 per claim for all professionals employed or retained by the Grantee to perform services under this Public Way Agreement. 4. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. Employer's Liability $1,000,000 per occurrence (Stop Gap Liability included in Employer's Liability.) B. The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability, Professional Liability, and Commercial General Liability insurance: 1. The Grantee's insurance coverage shall be primary insurance as respects the City. Any insurance, self- insurance, or insurance pool coverage maintained by the City shall be in excess of the Grantee's insurance and shall not contribute with it. 2. The Grantee's insurance shall be endorsed to state that coverage shall not be cancelled by either party except after thirty (30) days' prior written notice by mail, has been given to the City. C. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A -:VII. D. Verification of Coverage. Grantee shall furnish the City with documentation of insurer's A.M. Best rating and with original certificates. Amendatory endorsements are available online at the following web address: https : / /www.lockton.com /netcert2/ key /termsandConditions.aspx ?ck =L11 N23640. Q4261 J 594440. E. Grantee shall have the right to self- insure any or all of the above - required insurance. Any such self- insurance is subject to approval by the City. Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 11 DI.B Page 44 of 64 F. Grantee's maintenance of insurance as required by this Agreement shall not be construed to limit the liability of Grantee to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy to which the City is otherwise entitled at law or in equity. Section 16. Performance Security Pursuant to ACC Chapter 20.10, the Grantee shall provide the City with adequate security as specified in ACC Section 20.10.250, in a form and substance acceptable to the City, securing the Grantee's faithful compliance with the terms of this Public Way Agreement. Such guarantees shall be in a performance bond in the amount of fifty thousand dollars ($50,000.00). Section 17. Successors and Assignees A. All the provisions, conditions, regulations and requirements herein contained shall be binding upon the successors, assigns of, and independent contractors of the Grantee, and all rights and privileges, as well as all obligations and liabilities of the Grantee shall inure to its successors, assignees and contractors equally as if they were specifically mentioned herein wherever the Grantee is mentioned. B. This public way agreement shall not be leased, assigned or otherwise alienated without the express consent of the City by resolution. C. Grantee and any proposed assignee or transferee shall provide and certify the following to the City not less than one hundred twenty (120) days prior to the proposed date of transfer: (a) Complete information setting forth the nature, term and conditions of the proposed assignment or transfer; (b) All information required by the City of an applicant for a Public Way Agreement with respect to the proposed assignee or transferee; and, (c) An application fee which shall be set by the City, plus any other costs actually and reasonably incurred by the City in processing, and investigating the proposed assignment or transfer. D. Notwithstanding anything to the contrary contained herein, Grantee may assign this Public Way Agreement or any of its rights under this Public Way Agreement or delegate any of its duties under this Public Way Agreement upon written notice to the City to (i) any entity that it controls, is under common control with or is controlled by or (ii) any entity that is the survivor of a merger, consolidation or other business combination or that acquires all or substantially Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 12 DI.B Page 45 of 64 all of the assets of Grantee provided such assignment or delegation specifically states that the successor or assignee agrees to be bound by the terms of this Agreement. Section 18. Dispute Resolution A. In the event of a dispute between the City and the Grantee arising by reason of this Agreement, the dispute shall first be referred to the operational officers or representatives designated by Grantor and Grantee to have oversight over the administration of this Agreement. The officers or representatives shall meet within fifteen (15) calendar days of either party's request for a meeting, whichever request is first, and the parties shall make a good faith effort to achieve a resolution of the dispute. B. If the parties fail to achieve a resolution of the dispute in this manner, either party may then pursue any available judicial remedies. This Public Way Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be exclusively in King County, Washington. The prevailing party in any such action shall be entitled to its attorneys' fees and costs of suit, which shall be fixed by the judge hearing the case, and such fees shall be included in the judgment. Section 19. Enforcement and Remedies A. If the Grantee shall willfully violate, or fail to comply with any of the provisions of this Public Way Agreement through willful intent or gross negligence, or should it fail to heed or comply with any notice given to Grantee under the provisions of this agreement, the City may, at its discretion, provide Grantee with written notice to cure the breach within thirty (30) days of notification. If the City determines the breach cannot be cured within thirty days, the City may specify a longer cure period, and condition the extension of time on Grantee's submittal of a plan to cure the breach within the specified period, commencement of work within the original thirty day cure period, and diligent prosecution of the work to completion. If the breach is not cured within the specified time, or the Grantee does not comply with the specified conditions, the Grantee, and its successors or assignees, shall forfeit all rights Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 13 DI.B Page 46 of 64 conferred hereunder, and the Public Way Agreement may be revoked or annulled by the City with no further notification. B. Should the City determine that Grantee is acting beyond the scope of permission granted herein for Grantee Facilities and Grantee Services, the City reserves the right to provide written notice to Grantee requiring the Grantee to apply for, obtain, and comply with all applicable City permits, franchises, or other City permissions for such actions, and if the Grantee's actions are not allowed under the Auburn City Code, to compel Grantee to cease such actions. If such permits, franchises or other permissions are not obtained within a reasonable period of time, as determined by the City, following Grantee's receipt of written notice of such requirement, then City may thereafter cancel this Public Way Agreement on thirty (30) days written notice to Grantee. Section 20. Compliance with Laws and Regulations A. This Public Way Agreement is subject to, and the Grantee shall comply with all applicable federal and state or City laws, regulations and policies (including all applicable elements of the City's comprehensive plan), in conformance with federal laws and regulations, affecting performance under this Public Way Agreement. Furthermore, notwithstanding any other terms of this agreement appearing to the contrary, the Grantee shall be subject to the police power of the City to adopt and enforce general ordinances necessary to protect the safety and welfare of the general public in relation to the rights granted in the Public Way. B. The City reserves the right at any time to amend this Public Way Agreement to conform to any hereafter enacted, amended, or adopted federal or state statute or regulation relating to the public health, safety, and welfare, or relating to roadway regulation, or a City Ordinance enacted pursuant to such federal or state statute or regulation upon providing Grantee with thirty (30) days written notice of its action setting forth the full text of the amendment and identifying the statute, regulation, or ordinance requiring the amendment. Said amendment shall become automatically effective upon expiration of the notice period unless, before expiration of that period, the Grantee makes a written call for negotiations over the terms of the amendment. If the parties do not reach agreement as to the terms of the amendment within thirty (30) days of the initial notice, the City may enact the proposed amendment, by incorporating the Grantee's concerns to the maximum extent the City deems possible. Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 14 DI.B Page 47 of 64 C. The City may terminate this Public Way Agreement upon thirty (30) days written notice to the Grantee, if the Grantee fails to comply with such amendment or modification. Section 21. License, Tax and Other Charges This Public Way Agreement shall not exempt the Grantee from any future license, tax, or charge which the City may hereinafter adopt pursuant to authority granted to it under state or federal law for revenue or as reimbursement for use and occupancy of public ways. Section 22. Consequential Damages Limitation Notwithstanding any other provision of this Agreement, in no event shall either party be liable for any special, incidental, indirect, punitive, reliance, consequential or similar damages. Section 23. Severability If any portion of this Public Way Agreement is deemed invalid, the remainder portions shall remain in effect. Section 24. Titles The section titles used herein are for reference only and should not be used for the purpose of interpreting this Public Way Agreement Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 15 DI.B Page 48 of 64 DATED and SIGNED this day of , 20_ CITY OF AUBURN NANCY BACKUS MAYOR ATTEST: Danielle E. Daskam, City Clerk APPROVED AS TO FORM: Daniel B. Heid, City Attorney Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 16 DI.B Page 49 of 64 Exhibit A Sprint Fiber AUBURN 367 A.M.. R..,.. ghee., Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 17 M.pM.l.ww.� I - r . wr oan x.7r.we, e^9 w■re.Cwrta 1•a. awry m■ me r■...N•■•■■e u. DI.B Page 50 of 64 Exhibit B Grantee Facilities Sprint fiber optic cable occupies 542 linear feet of City right of way through 6 road crossings pursuant to City of Auburn, WA Public Works Department Permit No. 42 -71, issued September 17, 1987. The crossing locations are as follows: (1) Crossing at 277th Street, 80'4" feet (2) Crossing 285th Street, 110'4 "feet (3) Crossing 37th Street N.W., 90'4" feet (4) Crossing Main Street, 90'4" feet (5) Crossing 15th Street S.W., 140'4 "feet (6) Crossing 29th Street N.W., 30'feet Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 18 D I . B Page 51 of 64 EXHIBIT "C" STATEMENT OF ACCEPTANCE SPRINT COMMUNICATIONS COMPANY LP, a Delaware limited partnership for itself, its successors and assigns, hereby accepts and agrees to be bound by all lawful terms, conditions and provisions of the Public Way Agreement attached hereto and incorporated herein by this reference. SPRINT COMMUNICATIONS COMPANY, L.P. By: Date: Name: Title: STATE OF Kansas ) )ss. COUNTY OF Johnson ) On this day of , 20 , before me the undersigned, a Notary Public in and for the State of , duly commissioned and sworn, personally appeared, of Sprint Communications Company L.P., the company that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said company, for the uses and purposes therein mentioned, and on oath stated that he /she is authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal on the date hereinabove set forth. Signature NOTARY PUBLIC in and for the State of , residing at MY COMMISSION EXPIRES: Resolution No. 5163, Exhibit 1 Version Date: 06/15/2015 PUBLIC WAY AGREEMENT NO. 15 -22 Page 19 DI.B Page 52 of 64 DI.0 C=ITY or AUBURN WASHINGTO AGENDA BILL APPROVAL FORM Agenda Subject: Date: Annual Street Selection for Arterial and Local Street August 17, 2015 Preservation Department: CD & PW Attachments: Map 1: 2016 and 2017 Local Street Preservation Program Map 2: Arterial and Collector Street Preservation Program Map 3: Local and Arterial Streets Needing Work Administrative Recommendation: Budget Impact: $0 For discussion only. Background Summary: Staff is providing information on the planned scope of work for the 2016 and 2017 SOS Local Street Preservation program, as well as the 2016 Arterial Street Preservation Program. Staff is anticipating a Program budget for the SOS Local Street Preservation Program as follows: • $2,230,000.00 in 2016 SOS Funds • $1,600,000.00 in 2017 SOS Funds • $500,000.00 in 2016 and 2017 each of Water Funds Staff is anticipating a Program budget for the Arterial Streets Preservation Fund of approximately $3,573,000.00 in 2016. The 2017 Arterial Streets Preservation program budget has yet to be determined. Staff is packaging these funds to perform the pavement reconstruction, preservation, water system improvements work shown on the attached maps. There are several locations of un- sewered areas included in the SOS Streets that have been selected. Staff will survey these neighborhoods about their interest in a Sewer Local Improvement District (LID) to determine if this work will be added to the Scope of the project. AUBURN * MORE THAN YOU IMAGINED Page 53 of 64 DI.0 Map 1: 2016 and 2017 Local Street Preservation Program; • The Local Street selection process began with 47 streets that were being considered for reconstruction based on pavement condition rating, maintenance needs, and in consultation with the Water and Sewer Utility Engineers to determine their budget based priorities. The final selected streets are shown on this map. Map 2: 2016 Arterial & Collector Street Preservation Program; • Shows the Arterial Streets that have Arterial Preservation Funds in the project for 2016. The most significant corridors include the Auburn Way N Overlay Project and the B Street NW Reconstruction Project. Map 3: Arterial & Local Streets Needing Work; • Shows the remaining pavement preservation work for both the SOS and Arterial Preservation Programs after the completion of this years program work. Please note that the majority of the remaining rebuild work shown on this map will also have some associated utility work. Reviewed by Council Committees: Councilmember: Meeting Date: August 24, 2015 Staff: Snyder Item Number: DI.0 AUBURN * MORE THAN YOU IMAGINED Page 54 of 64 spy SETH JAI AVE k AVE & C UL DE SACS ro Work: Thin Overlay and Curb Ramp upgrade Length of Overlay 0.70 Miles (3,695 Feet) Road work = $2436 53RD AVE S, S 302ND P & CUL DE SACS Work: Thin Overlay and Curb Ramp upgrade Length of Overlay 10.49 Miles (2,555 Feet) ad work = $1676 Jfi F Street SE East Main St to 4th St SE Work: Rebuild Street, Drainage & Water Length of Reconstruction 0.24 Miles (1,245 feet) Road Work = $486K Water Work = $218K Total Cost = $704K 21ST STREET NE Aubure Way N to I St NE Work: Rebuild Street & Drainage Length of Reconstruction 0.10 Miles (564 feet) 19th St SE and G St SE FSt SE to H51 17th St SE to 19th St SE Work: Rebuild Street & Drainage Length of Reconstruction 0.19 Miles (1,010 feet) Road work = $227K F); SWORN-3Piii ArPrE Far []f1 :fir gwaik 1P kkL Work: Rebuild Street, Drainage, Water & LID for Sewer Length of Reconstruction 0.25 Miles (1,330 feet) Road work = $639K Water work = $233K Sewer LID = $259K* Total cost = $872K 26th St SE, 27th St SE, 28th St SE, S St SE, T St SE, AND U St SE Worm Rebuild Street, Drainage, Wafer, 3 LID for Sewer L ngth of Reconstruction 0.46 Hiles (2,420 feet) Road work= $118010 V ate work = $423K 5 we LID = $4716* Total Cost = $1,612K LGMEE MAP 1: 2016 AND 2017 LOCAL STREET PRESERVATION PROGRAM DI .0 2016 PROPOSED REBUILD STREETS (0.59 Miles, $1,395Kfrom 103 fund) 2016 PROPOSED OVERLAY STREET (0.70 Miles, $243Kfrom 103 fund) 2017 PROPOSED REBUILD & OVERLAY STREETS (1.14 Miles, $1,583K from 103 fund) *Local Improvement District not Included In Total Cost of Project Street Page 55 of 64 PLOTTED: August 18, 2015 LOCATION: H: \Transportation \04 - Street Preservation \Pavement Preservation \Local Street Program \2016 S05 Program! \Preliminary Street Selection lies \2016 STREET SELECTION.dwg B STREET NW RECONSTRUCTION PROJECT 37th St NW to 5277th St Work: Rebuild Street, Drainage & Sewer improvement t Length .94 M of Reconstruction ,97 et) 0.94 Miles (4,977 Feet) FA= f Raw WTo l$$82,0 sewer Work= $235K MMStreet Total = $2,014K —I : ae • 15TH ST NW /NE & HARVEY ROAD NE 5R157 Ramp to 8th St NE Work: Grind & Overlay Roadway, Rebuild Curb Ramps, Signal upgrades Length of Grind & Overlay 1.52 Miles (8,000 Feet) 2015 Design Work = $135K 50% Grant Funded AUBURN WAY NORTH GRIND AND OVERLAY 22nd St NE to 45th St NE Work: Grind & Overlay, Curb Ramp upgrades, and signal improvements Length of Grind & Overlay .0 1.45 Miles (7,687 Feet) Road work = $887K 50% Grant Funded kear 1E—Mr SEA .« ..Hey M STREET IMPROVEMENT PROJECT East Main St to 3rd St SE Work: Grind, Patch and Overlay roadway; Rebuild Sewer, Drainage, & Water Length of Grind & Overlay 0.18 Miles (950 Feet) Road work = $250K .QQagp� ® UPIF grAf'Q47H1`� 37TH ST SE & A ST SE Intersection Paving Work: Construct signal at 37th & A, Overlay pavement in 200ft in each direction, rebuild curb ramps W MAIN STREET RECONSTRUCTION PROJECT West Volley Highway to union Pada' Rail crossing Work: Reconstruct Roadway, install ITS System, Corridor Improvements Length of Reconstruction 0.73 Miles (3,850 Feet) Road work = $315K 86.50/o Grant Funded Length of Overlay 0.11 Miles (600 Feet) Road work = 587K Parace coo LAKE TAPPS PARKWAY PAVEMENT PRESERVATION City limit to Lakeland Xis Way Work: Grind & Overlay roadway and Rebuild Curb Ramps Length of Grind & Overlay 1.36 Mlles (7,180 Feet) 2016 Design work = $124k 86.5% Grant Funded miLl" Irk .10.15417N--", MAP 2: 2016 ARTERIAL & COLLECTOR STREET PRESERVATION PROGRAM DI.0 2016 PROJECT SITE (3.41 Miles,$3,314Kfrom105Fund) 2017 PROJECT SITE* ($259K for Design Only in 2016) *Additional 2017 Streets will be identified in 2016. rage 56 of 64 PLOTTED: August 18, 2015 LOCATION: H: \Transportation \04 - Street Preservation \Pavement Preservation \Local Street Program \2016 SOS Program \Preliminary Street Selection lies \2016 STREET SELECTION.dwg MIIII PPM P AP ® 11R UPI MAP 3: LOCAL & ARTERIAL STREETS NEEDING WORK DI .0 REBUILD REQUIRED BASE REPAIR AND OVERLAY REQUIRED SURFACE TREATMENT REgUfIRED Page o 64 PLOTTED: 6/15/15 LOCATION: H: \Transportation \04 - Street Preservation \Pavernent Preservation \Local Street Prograrn \2016 SOS Prograrn \Preliminary Street Selection files \Street Preservation Remaining Work.dvrg C=ITY or AUBURN WASH I NCTO AGENDA BILL APPROVAL FORM DI.D Agenda Subject: Date: Easement Relinquishment for 1905 Howard Road SE, August 18, 2015 Parcel 1921059206 Department: CD & PW Attachments: Budget Impact: Attachment A - Depiction of the Proposed $0 Estates at H il!side Gardens Attachment B - Proposed Sewer Easement Relinquishments, New Sewer Easement, and Easments to Remain, The Estates at H iI Iside Gardens Attachment C - Street Perspectives for Proposed Estates at HiIIsi de Gardens Prciect and Plan View of Proposed Estates at Hillside Gardens Project Administrative Recommendation: For discussion only. Background Summary: Farrell Property Investments is proposing to construct a 125 -unit active adult residential development at 1905 Howard Road SE, as shown on Attachment A. The single - building complex, as proposed in their SEPA Application, will have a gated entry off of Howard Road, secured parking, perimeter buffering, and a private courtyard for the community residents. The proposed development includes Tax Parcels 1921059206 and 1921059247. There has been a significant amount of community comment and concern about the proposed development from residents near the site. Tax Parcel 1921059206, which is the site of the proposed building, contains two easements for sewer drain fields and was recorded in 1989, each easement serves as an onsite septic system drainfield site for two adjacent properties: • Tax Parcel 1921059337 (currently owned by the City of Auburn [City], currently used as a stormwater facility) • Tax Parcel 1921059274 (currently owned by Valley Regional Fire Authority [VRFA]). AUBURN * MORE THAN YOU IMAGINED Page 58 of 64 DI.D The applicant has requested that the City relinquish the 90 -foot by 120 -foot easement that benefits the City's property (Tax Parcel 1921059337) in exchange for the applicant granting a new 15 -foot wide sanitary sewer easement for potential future construction of a sewer main line from the City's property to the existing sewer system in the adjacent "O" Court SE. Note that the existing, underlying 25 -foot public utilities easement (recorded in 1990) along the north side of Tax Parcel 1921059206 would remain for the benefit of the City. The second easement is for VRFA's benefit and VRFA staff has indicated that the proposed relinquishment is acceptable, and that they will be discussing with their Board on September 8th. The proposed relinquishments, the new sewer easement proposed to be granted, and the easements to remain on the applicant's properties are shown on Attachment B. The applicant, Farrell Property Investments, is requesting the easement relinquishment in order to accommodate their proposed building which currently overlaps with the City's and VRFA's existing easement area. City staff has worked with the applicant to define the new sewer easement, and feels that it is in the best interests of the City to grant the relinquishment in exchange for the new easement area for the following reasons: • There is no current need for a septic system to serve the City's Storm property. • There is no existing septic system in place at this time. • The new easement will provide the necessary access to the City's existing sewer system if future sewer service for the City's property is required. • The VRFA property is already served by a sewer system. The cost of preparing the legal descriptions and recording the relinquishment and new easement documents will be borne by the applicant. Additional depictions (street perspective, landscaping plan) of the proposed development are shown in Attachment C. Reviewed by Council Committees: Councilmember: Meeting Date: August 24, 2015 Staff: Snyder Item Number: DI.D AUBURN * MORE THAN YOU IMAGINED Page 59 of 64 Attachment A — The Estates at Hillside Gardens DI.D Page 60 of 64 Attachment B - Proposed Sewer Easement Relinquishments, New Sewer Easement, and Easements to Remain The Estates at Hillside Gardens GRAPHIC SCALE 0 20 en 120 ( IN FEET 1 Inch = 50 15. THE ESTATES AT HILLSIDE GARDENS PARCEL 1921059337 CITY OF AUBURN PARCEL 1021069305 500300 6NATRI0 0ENTNEl — 25-01119STA L7p979g , PER SPL0004 -90 (RN 90051TroP11 _ PARCEL 6899200/90 TYLER MALNER ti SANITARY SEWER EASEMENT EXHIBIT THE (464140 SANITARY .7LA04 (ASSOC' °4100 NTH RN 8911150024 0145 700 PORT055; A 45x120' PORnCN FOR THE 9ENEFIT OF 0444(7 1921059737 7N0 A 3116120' 707nRJ FOR (NE 13ENEFI7 OE PARCEL 1921059274. THESE 70011055 OF THE EASEMENT WERE INTENDED 70 8E USED FOR OO7MFOED PURPOSES FOR 711E 401ECIILE 4(414(RNS PARCELS. Ti1E PROPOSED SM'rrARY :EVER EA05EN7 SRRN PROYNES AN FA1Y1L91 'PATH' 10 CCW5IRUCT A PIPED 459 PRY SERER 0994) d1 10 TIE fMST40 SMUTARI SEMEN NN9 M '0" 00541 SW RIEAST.. City Easements proposed to remain LEGEND PARCEL 8 PARCEL 1921659247 90'4120' EXISTING SANITARY SEWER EASEMENT FOR PARCEL 1921059337 90' SERER MEANT 510 (0N N 89113111150022) Fifit New s easem grante( 8;, 20111 CT. ,below Nno0911 N 0141090) 4 -13 -11 I I0 0 25' 25 PROPOSED SAAINARY 5f11ER E0.447ENT (SEE THE LIEU( ON INN SHFE) PROPOSED SANITARY SEVER EASEMENT 30.rI20' EXISTING SANITARY 501VER EA5E4F14T FOR PAR157 1921059274 RN RECOR ➢MG NUMBER 5110 STATUTORY WARRANTY DEED PARCEL 1921059304 CTro OF AUBURN PARCEL A PARCEL 1921059206 30' x 120' SWAY SERER EASEMENT PEN X96 (RN 49111500221 PARCEL 192105927 VALLEY REGIONAL FIRE AUTHORITY 15 PARCEL 1921059338 CITY OF AUBURN PROPOSED SANITARY PARCEL 5921059025 PARCEL 192105907or u ~ r Btu ., 1 . -.I,I IR 1991 II SEWER EASEMENT NO SCALE Engineer-limn 2901 South 35th. Slue 200 Femme. WeehIe91en 90100 -7479 (253) 473 -4494 FAIL (253) 473 -0599 007EC ENe r: PLLC 2010 DI.D Page 61 of 64 7j17,1 fi - p - _up ] L _ 1011 31 1 11 - _ tg3 1124—J-4' CUM _ '11715. Page 63 of 64 R DA MSS DEC.101811593CIATESING HOWARD ROAD ELDERL PERSPECTIVES A3.2 ,7a =6 .E'`:nR` RE; OVERALL SITE jl • aE� G \I ly ' CONCEPTUAL LANDSCAPE PLAN CITY REVIEW - NOT FOR CONSTRUCTION "O" COURT SE CONCEPTUAL LANDSCAPE PLAN HOWARD ROAD SENIOR HOUSING 1919 HOWARD ROAD, AUBURN. WA L. 2 siw�zois ei l --