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HomeMy WebLinkAbout03-12-2018 STUDY SESSION AGENDACity Council Study Session Muni Serv ices S FA March 12, 2018 - 5:30 P M Council Chambers - City Hall A GE NDA Watch the meeting L I V E ! Watch the meeting video Meeting videos are not available until 72 hours after the meeting has concluded. I .C A L L TO O R D E R A .Roll Call I I .A NNO UNC E ME NT S , R E P O RT S , A ND P R E S E NTAT I O NS I I I .A G E ND A I T E MS F O R C O UNC I L D I S C US S I O N A .Ordinance No. 6671 (10 Minutes) (Gaub) A n Ordinance of the City Council of the City of A uburn Washington, vacating real property intended for right-of-way purposes located at 1412 3rd Street S E , within the City of Auburn, Washington B .Ordinance No. 6674 (5 Minutes) (Gaub) A n Ordinance of the City Council of the City of A uburn, Washington, granting a franchise agreement for a petroleum products pipeline to Olympic Pipe L ine Company, L L C C.L akehaven - Auburn Sewer Boundary A djustment (5 Minutes) (Gaub) D.4th Quarter 2017 F inancial Report (20 Minutes) (Coleman) I V.MUNI C I PA L S E RV I C E S D I S C US S I O N I T E MS A .A irport 2018-2022 C I P Discussion (10 Minutes) (Gaub) V.O T HE R D I S C US S I O N I T E MS V I .NE W B US I NE S S V I I .MAT R I X A .Matrix V I I I .A D J O UR NME NT 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. Page 1 of 106 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6671 (10 Minutes) (Gaub) Date: February 23, 2018 Department: CD & PW Attachments: Draft Ordinance No. 6671 Staff Report Vicinity Map Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: For discussion only. Background Summary: The City of Auburn has determined that a 50 foot by 60 foot piece of real estate quit claim deeded to the City in the vicinity of 1412 3rd Street SE was intended for right-of-way purposes but was never opened as a street or used as such by the City. The right-was quit claim deeded to the City on June 14, 1956. City staff and utility providers who have an interest in this right-of-way have reviewed the proposed right-of-way vacation. Through this review, City staff has determined that the right of way is no longer necessary to meet the needs of the City and could be vacated. A Public Hearing to consider this application and hear public comment is scheduled before the City Council on March 19, 2018 in accordance with Auburn City Code Chapter 12.48.070. Ordinance No. 6671, if adopted by City Council would approve Vacation No. V1-17 and vacate the right-of-way. Rev iewed by Council Committees: Councilmember:Staff:Gaub Meeting Date:March 12, 2018 Item Number: Page 2 of 106 - - - - - - - - - - - - - - - Ordinance No. 6671 February 6, 2018 Page 1 of 3 ORDINANCE NO. 6 6 7 1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN WASHINGTON, VACATING REAL PROPERTY INTENDED FOR RIGHT-OF-WAY PURPOSES LOCATED AT 1412 3RD STREET SE, WITHIN THE CITY OF AUBURN, WASHINGTON WHEREAS, in 1956, the City of Auburn received, through a quit claim deed, a portion of property located within the corporate boundaries of the City at 1412 3rd Street SE, which property was intended to couple up with other adjacent portions of property to provide for an East-West roadway south of 3rd Street SE and north of the Burlington Northern Railroad railway between M Street SE and R Street SE, within the City of Auburn; and WHEREAS, the right-of-way was never developed, necessary adjacent parcels were never acquired and King County did not segregate the portion of property the City acquired through the 1956 quit claim deed from the adjacent parcels; and WHEREAS, the City Council of the City of Auburn, Washington (“City Council”), has, after a review of its needs for streets and rights-of-way in the vicinity of the 1412 3rd Street SE between M Street SE and R Street SE, within the City, determined that consideration should be given to the vacation of the same; and WHEREAS, a public hearing was held in connection with the possible vacation, with notice having been provided pursuant to statute; and WHEREAS, the City Council has considered all matters presented at the public hearing on the proposed vacation, held on the 19th day of March, 2018, at the Auburn City Council Chambers in Auburn, Washington. Page 3 of 106 - - - - - - - - - - - - - - - Ordinance No. 6671 February 6, 2018 Page 2 of 3 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON DO ORDAIN as a non-codified ordinance as follows: Section 1. Vacation. That the right-of-way located at 1412 3rd Street SE, located within the City of Auburn, Washington, legally described as follows: The south 50 feet of the north 331.07 feet of the west 60 feet of Lot 33 East Auburn Acres addition to Auburn, according to the plat thereof recorded in Volume 14 of Plats, Page 41, records of King County, Washington. A portion of King County tax parcel number 2149800305, the same is hereby vacated and the property lying in said portion of right-of-way described hereinabove, shall inure and belong to those persons entitled to receive the property in accordance with RCW 35.79.040. Section 2. Constitutionality or Invalidity. If any portion of this Ordinance or its application to any person or circumstances is held invalid, the remainder of the Ordinance or the application of the provisions to other persons or circumstances shall not be affected. Section 3. Implementation. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this location. Section 4. Effective Date. This Ordinance shall take effect and be in force five (5) days from and after passage, approval, and publication as provided by law. Section 5. Recordation. The City Clerk is directed to record this Ordinance with the office of the King County Auditor. Page 4 of 106 - - - - - - - - - - - - - - - Ordinance No. 6671 February 6, 2018 Page 3 of 3 INTRODUCED: ______________________ PASSED: ___________________________ APPROVED: ________________________ ___________________________________ NANCY BACKUS, MAYOR ATTEST: ____________________________ Danielle E. Daskam, City Clerk APPROVED AS TO FORM: ____________________________ Daniel B. Heid, City Attorney PUBLISHED: _________________ Page 5 of 106 1 of 2 2/14/2018 V2-16 Staff Report RIGHT-OF-WAY VACATION STAFF REPORT Right-of-Way (ROW) Vacation Number V1-17 Applicant: City Initiated Property Location: Right-of-Way located in the vicinity of 1412 3rd Street SE. Specifically the south 50 feet of the north 331.07 feet of the west 60 feet of Lot 33 East Auburn Acres addition to Auburn. Description of right-of-way: This ROW proposed for vacation consists of a 50 foot by 60 foot portion of real property acquired for the intended purpose of right-of-way that was Quit Claim Deeded to the City in 1956 under Recording Number 4702460, Volume 3583, Page 617 of deeds records of King County on June 14, 1956. The City has determined that the intent of the City’s acquisition was for right-of-way purposes based on the alignment with other similar pieces of right-of-way that were dedicated for street purposes. These similar pieces of right-of-way were subsequently vacated years later when City long range transportation plans determined that a road alignment extending 4th Street SE between M Street SE and R Street SE was not needed and that unopened and partial alignments should be considered for vacation back to adjacent property owners. The ROW is located south of 3rd Street SE and north of the Burlington Northern Railroad and consists of a 50 foot by 60 foot area. The total area of ROW proposed for vacation is 3,000 (+/-) square feet. The ROW is adjacent to Parcel No. 2149800305 on the north side, Parcel No. 2149800302 on the south side, Parcel No. 2149800284 on the west side and Parcel No. 2149800306 on the east side. See the attached map. Proposal: The City proposes to vacate the above described right-of-way as it is not needed for public road purposes. Applicable Policies & Regulations:  RCW’s applicable to this situation - meets requirements of RCW 35.79.  MUTCD standards - not affected by this proposal.  City Code or Ordinances - meets requirements of ACC 12.48.  Comprehensive Plan Policy - not affected.  City Zoning Code - not affected. Public Benefit:  The street vacation decreases potential right-of-way maintenance obligation and liability of the City.  The vacated area will be subject to property taxes. Discussion: The vacation application was circulated to Puget Sound Energy (PSE), Comcast, CenturyLink, and City staff. 1. Puget Sound Energy (PSE) – PSE received the City’s request for comments regarding the proposed street right-of-way vacation. PSE was unable to determine if they have existing facilities in the proposed vacation area and stated that they would pursue their own easements if needed in the future. 2. Comcast – Comcast has no objection to the proposed vacation and does not require an easement. 3. CenturyLink – CenturyLink has not facilities on or in the area being requested for vacation and does not required an easement. 4. Water – The City does not require an easement be reserved for water facilities. Page 6 of 106 2 of 2 2/14/2018 V1-17 Staff Report 5. Sewer – The City does not require an easement be reserved for sewer facilities. 6. Storm – The City does not require an easement be reserved for storm facilities. 7. Transportation – No comments. 8. Planning – No comments. 9. Fire – The area proposed for vacation that is currently being used as a road and access to Parcel No. 2149800302 on the south side of the ROW will need to be maintained as such after vacation. The current access to this parcel does not meet current code for fire apparatus access turnaround requirements. As such the area currently being used as a road and access may not become any smaller than it currently is. 10. Police – No comments. 11. Streets – No comments. 12. Construction –No comments. Assessed Value: ACC 12.48 states “The City Council may require as a condition of the ordinance that the City be compensated for the vacated right-of-way in an amount which does not exceed one-half the value of the right-of-way so vacated, except in the event the subject property or portions thereof were acquired at public expense or have been part of a dedicated public right-of-way for 25 years or more, compensation may be required in an amount equal to the full value of the right-of-way being vacated. The City Engineer shall estimate the value of the right-of-way to be vacated based on the assessed values of comparable properties in the vicinity. If the value of the right-of-way is determined by the City Engineer to be greater than $2,000, the applicant will be required to provide the City with an appraisal by an MAI appraiser approved by the city engineer, at the expense of the applicant. The City reserves the right to have a second appraisal performed at the city’s expense.” The City Engineer has not required an appraisal for the value of this right-of-way since the right-of-way vacation is being initiated by the City. Additionally the right-of-way was dedicated to the City at no cost and the City has never maintained or opened the right-of-way for public use. Recommendation: Staff recommends that the street vacation be granted with no conditions. Page 7 of 106 192.3 NAD_1983_StatePlane_Washington_North_FIPS_4601_Feet Feet192.396.20 1:1,154 ROW Vacation #V1-17 1412 3rd Street SE 1in =96 ft 2/6/2018Printed Date: Map Created by City of Auburn eGIS Imagery Date: May 2015 Information shown is for general reference purposes only and does not necessarily represent exact geographic or cartographic data as mapped. The City of Auburn makes no warranty as to its accuracy. Page 8 of 106 AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 6674 (5 Minutes) (Gaub) Date: February 27, 2018 Department: CD & PW Attachments: Draft Ordinance No. 6674 Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Discussion of Draft Ordinance No. 6674 for Olympic Pipe Line Company, LLC Franchise Agreement No. 17-22. Background Summary: Olympic Pipe Line Company LLC is currently operating under an agreement which has recently expired and has applied for a new Franchise Agreement to continue to operate within the City’s rights of way an interstate pipeline for the transportation of petroleum products. Olympic has applied for a Franchise Agreement for a term of ten (10) years to continue to operate and maintain their facilities within the City’s rights of way. Olympic’s existing facilities consist of a 14-inch diameter pipeline located on the West Hill and in North Auburn. Their facilities do not currently serve any customers in Auburn and they have no plans to do so. Any construction, maintenance, improvements or changes to Olympic’s facilities are managed through the City’s permitting processes that are a requirement of the Franchise Agreement. Safety of Olympic’s facilities is regulated and inspected through the Washington Utilities and Transportation Commission. A Public Hearing to consider this application and hear public comment is scheduled before the City Council on March 19, 2018 in accordance with Auburn City Code Chapter 20.06.030. Rev iewed by Council Committees: Councilmember:Staff:Gaub Meeting Date:March 12, 2018 Item Number: Page 9 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 1 of 27 ORDINANCE NO. 6 6 7 4 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, GRANTING A FRANCHISE AGREEMENT FOR A PETROLEUM PRODUCTS PIPELINE TO OLYMPIC PIPE LINE COMPANY, LLC WHEREAS, Olympic Pipe Line Company, LLC (“Grantee”) has applied to the City of Auburn (“City”) for a non-exclusive Franchise for the right of entry, use, and occupation of certain public right(s)-of-way within the City, expressly to install, construct, erect, operate, maintain, repair, relocate and remove its facilities in, on, over, under, along and/or across those right(s)-of-way; and WHEREAS, following proper notice, the City Council held a public hearing on Grantee’s request for a Franchise, at which time representatives of Grantee and interested citizens were heard in a full public proceeding affording opportunity for comment by any and all persons desiring to be heard; and WHEREAS, from information presented at such public hearing, and from facts and circumstances developed or discovered through independent study and investigation, the City Council now deems it appropriate and in the best interest of the City and its inhabitants that the franchise be granted to Grantee. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN WASHINGTON, DO ORDAIN as follows: Section 1. Grant of Right to Use Franchise Area 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 and/or other public property specified in Exhibit “A”, attached hereto and incorporated by reference (the “Franchise Area”). B. The Grantee is authorized to install, remove, construct, erect, operate, maintain, relocate and repair, for provision of those services set forth in Exhibit “B” (“Grantee Services”) pipeline or pipelines, and associated valves, fittings, location markers and signs, communication systems, utility lines, signage, protective apparatus, and all other appurtenances, equipment, and facilities, Page 10 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 2 of 27 whether above or below grade, useful or incidental to or for the operation or protection thereof (the “ Grantee Facilities”), and conduct such other activities as may be convenient in connection therewith as determined by Grantee, for the transportation of oil, gases, liquids, solids, or any mixtures thereof, and any product, by-product, and derivatives thereof, on, over, under, across, and through the Franchise Area. C. This Franchise does not authorize the use of the Franchise Area 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, on public or private property elsewhere within the City. This Franchise is intended to convey only a limited right and interest and is not a warranty of title or interest in the City’s right-of ways. The Agreement does not convey any right to Grantee to install Grantee Facilities on or to otherwise impact, city-owned or leased properties, easements, or rights-of way outside the ones identified in Exhibit A. D. This Franchise is non-exclusive and does not prohibit the City from entering into other agreements, including Franchises, impacting the Franchise Area, unless the City determines that entering into such agreements interferes with Grantee’s right set forth herein. E. Except as explicitly set forth herein, this Franchise does not waive any rights that the City has or may hereafter acquire with respect to the Franchise Area or any other City roads, rights-of-way, property, or any portions thereof. This Franchise shall be subject to the power of eminent domain, and in any proceeding under eminent domain, the Grantee acknowledges its use of the Franchise Area shall have no value. F. The City reserves the right to change, regrade, relocate, abandon, or vacate any right-of-way within the Franchise Area. If, at any time during the term of this Franchise, the City vacates any portion of the Franchise Area containing Grantee Facilities, the City shall reserve an easement for public utilities within that vacated portion, pursuant to RCW 35.79.030, within which the Grantee may continue to operate any existing Grantee Facilities under the terms of this Franchise for the remaining period set forth under Section 3. G. The Grantee agrees that its use of Franchise Area shall at all times be subordinated to and subject to the City and the public’s need for municipal Page 11 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 3 of 27 infrastructure, travel, and access to the Franchise Area, except as may be otherwise required by law. H. This Franchise is subject to the provisions of Auburn City Code (“ACC”), including specifically ACC Chapter 20.10, “CONDITIONS OF PUBLIC WAY AGREEMENTS, FRANCHISES, AND FACILITIES LEASES”, and all applicable federal and state laws, codes and regulations as currently exist or as amended. However, if the provisions of city code, as amended or superseded, conflict with any terms and conditions of this agreement, the provisions of this agreement shall govern. Section 2. Notice A. Whenever this Franchise calls for notice to or notification by any party, the same (unless otherwise specifically provided) shall be in writing and directed by certified mail to the recipient at the address set forth in this Section. If the date for making any payment, notice, or performing any act is a legal holiday, payment or notice may be made or the act performed on the next succeeding business day which is not a legal holiday. City: Engineering Aide, Community Development and Public Works Department City of Auburn 25 West Main Street Auburn, WA 98001-4998 Telephone: (253) 931-3010; Fax: (253) 931-3048 with a copy to: City Clerk City of Auburn 25 West Main Street Auburn, WA 98001-4998 Grantee: Olympic Pipe Line Company, LLC. Right of Way Agent 2319 Lind Ave SW Renton, WA, 98057 Telephone: (425) 235-7736, Fax (425) 981-2525 Page 12 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 4 of 27 B. Any changes to the above-stated Grantee information shall be sent to the City’s Engineering Aide, Community Development and Public Works Department, with copies to the City Clerk, referencing the title of this agreement. C. The above-stated Grantee voice and fax telephone numbers shall be staffed at least during normal business hours, Pacific time zone. Section 3. Term of Agreement A. This Franchise shall run for a period of 10 (ten) years, from the date of execution specified in Section 5. B. Renewal Option of Term: The Grantee may renew this Franchise for an additional ten (10) year period upon submission and approval of the application specified under ACC 20.06.130, as it now exists or is amended, within the timeframe set forth therein (currently between 180 and 240 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 submit those materials that differ from the previous materials or as 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 Franchise – Automatic Extension. If the Parties fail to formally renew this Franchise prior to the expiration of its term or any extension thereof, the Franchise automatically continues year to year until renewed or either party gives written notice at least one hundred and eighty (180) days in advance of intent not to renew the Franchise. 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. Page 13 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 5 of 27 “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. “Rights-of-Way” or “Right-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. “Grantee Facilities” or “Facilities” means, collectively, any and all systems owned or operated by Grantee located in the City Rights-of-Way, including but not limited to pipelines, mains, laterals, fixtures, communication systems, and any and all other equipment appliances, attachments, appurtenances and other items necessary, convenient, or in any way appertaining to any and all of the foregoing for the purpose of transmission of petroleum products, whether the same be located over or under ground. “Hazardous Substance” shall specifically include, but shall not be limited to, petroleum and petroleum products and their by-products, residue, and remainder in whatever form or state. “Operate” or “Operations” shall mean the operation, use, and maintenance of Grantee Facilities, pursuant to the terms of this Agreement. “Party” or “Parties” means collectively the City and Grantee, and individually either the City or Grantee. “Public Works Project” means, any City capital improvement or the construction, relocation, expansion, repair, maintenance, or removal of any part of the Right-of- Way or City-owned facilities located on or in the Right-of-Way for: parks; streets; sidewalks; curbs; pedestrian and/or vehicle traffic; sewers, storm water drains; water facilities, and; City-owned fiber optic cable, conduit or network facilities. “Third Party” means any person, party, or entity other than the City and Grantee. Page 14 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 6 of 27 “FERC” means the Federal Energy Regulatory Commission, or such other successor regulatory agency having jurisdiction over interstate pipeline companies. Section 5. Acceptance of Franchise A. This Franchise, 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,” and incorporated by reference, (2) all verifications of insurance coverage specified under Section 17, (3) the financial guarantees specified in Section 18 and (4) payment of any outstanding application fees per the City fee schedule. These four items shall collectively be the “Franchise Acceptance”. The date that such Franchise Acceptance is filed with the City Clerk shall be the effective date of this Franchise. B. Should the Grantee fail to file the Franchise Acceptance with the City Clerk within thirty (30) days after the effective date of the ordinance approving the Franchise Agreement, the City’s grant of the Franchise will 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, as they now exist or as may be hereafter amended or superseded, 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 Right-of-Way within which Grantee is under taking its activity. Such efforts shall include, at a minimum, reasonable and diligent efforts to keep the other party and other utilities within the Right-of-Way informed of its intent to undertake such construction work. C. In addition to complying with ACC 20.10.80, as hereafter amended or superseded, Grantee Facilities shall be located and maintained within the Right- of-Way so as not to interfere with the reasonable ingress or egress to the properties abutting the Right-of-Ways as they existed or exist at the time of installation of the Grantee Facilities. The City expressly reserves the right to prescribe how and where Grantee Facilities shall be installed within the public right-of-way and may Page 15 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 7 of 27 from time to time, pursuant to the applicable sections of this Franchise, require, at no cost to the City, the removal, relocation and/or replacement thereof in the public interest and safety at the expense of the Grantee. D. Grantee shall continuously be a member of the State of Washington One Number Locator service under RCW Chapter 19.122, or an approved equivalent as determined by the City, and shall comply with all such applicable rules and regulations. Before commencing any work within the Right-of-Way, the Grantee shall comply with the One Number Locator provisions of RCW Chapter 19.122 to identify existing utility infrastructure. E. Tree Trimming. Upon prior written approval of the City and in accordance with City ordinances, Grantee shall have the authority to reasonably trim trees upon and overhanging streets, Right-of-Way, and such other places in the Franchise Area so as to prevent the branches of such trees from coming in physical contact with the Grantee Facilities. Grantee shall be responsible for debris removal from such activities. If such debris is not removed within twenty- four (24) hours of completion of the trimming, the City may, at its sole discretion, remove such debris and charge Grantee for the cost thereof. This section does not, in any instance, grant automatic authority to clear vegetation for purposes of providing a clear path for radio signals. Any such general vegetation clearing will require a land clearing permit. H. Markers demarcating the pipeline's location shall be placed on the surface consistent with federal requirements to provide clear warning of the presence of the pipeline but in a manner that does not interfere with trails or other public uses in that area. Additionally, Grantee shall place continuous underground markers demarcating the pipeline's location each time Grantee digs to the pipeline for any reason. Section 7. 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 253-876-1985 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 Page 16 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 8 of 27 which requires the Grantee’s immediate response the City shall contact the Grantee at 888-271-8880 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 A. Grantee agrees that if any of its actions under this Franchise impairs or damages 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 and then to the condition it was in immediately prior to being damaged. Such repair work shall be performed and completed to the satisfaction of the City Engineer. B. If Grantee has failed to perform any work required to be performed in a timely manner under this Ordinance, or to correct an unsafe condition, the City may itself perform or have performed such work. Grantee shall pay all reasonable costs incurred by the City to perform such work upon demand of the City. C. All survey monuments which are disturbed or displaced by Grantee in its performance of any work under this Agreement shall be referenced and restored by Grantee, as per WAC 332-120, as from time to time amended, and all applicable federal, state, and local standards and specifications. Section 9. Location Preference A. Any structure, equipment, appurtenance or tangible property of a 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 Franchise 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 another private utility’s submittal of a permit for new or additional structures, equipment, appurtenances or tangible property, 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 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 any City facilities or utilities that may in Page 17 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 9 of 27 the future require the relocation of Grantee Facilities. Such relocations shall be governed by Section 11. B. When constructing new facilities, or replacing or reconstructing facilities, Grantee shall maintain a minimum underground horizontal separation of ten (10) feet from City water and five (5) feet from City sanitary sewer and storm sewer facilities; provided, that for development of new areas, the City, in consultation with Grantee and shall coordinate with other utility purveyors or authorized users of the Public Way, will develop and follow the City’s determination of guidelines and procedures for determining specific utility locations, subject additionally to this agreement. Section 10. Grantee Information A. Grantee agrees to supply, at no cost to the City, any information reasonably requested by the City Engineer to coordinate municipal functions with Grantee’s activities and 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 may be requested either in hard copy or electronic format, compatible with the City’s data base system, as now or hereinafter existing, including the City’s geographic information Service (GIS) data base. Grantee shall keep the City Engineer informed of its long-range plans for coordination with the City’s long-range plans. B. Upon the City’s reasonable request, in connection with the design of any Public Works Project, Grantee shall verify the location of Grantee Facilities at no expense to the City. In the event Grantee performs excavation, the City shall not require any restoration of the disturbed area in excess of restoration to the same condition as existed immediately prior to the excavation. C. 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. Page 18 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 10 of 27 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. Grantee shall indemnify and hold harmless the City for any loss or liability for fines, penalties, and costs (including attorneys fees) imposed on the City because of non-disclosures requested by Grantee under Washington’s open public records act, provided the City has notified Grantee of the pending request or Grantee is made aware of the request or claim. Section 11. Relocation of Grantee Facilities A. Except as otherwise so required by law, Grantee agrees to relocate, remove, or reroute its facilities within one hundred and eighty (180) days of being ordered by the City Engineer at no expense or liability to the City, except as may be required by RCW Chapter 35.99. Such alternate location for relocation of Grantee’s facilities shall be determined and approved jointly by the City and Grantee at no cost to the City. Pursuant to the provisions of Section 16, Grantee agrees to protect and save harmless the City 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. If a readjustment or relocation of the Grantee Facilities is necessitated by a request from a party other than the City (a “Third Party”), that party shall pay the Grantee the actual costs thereof. Any contractor doing work pursuant to contract with the City shall not be considered a Third Party for purposes of this section. C. Any condition or requirement imposed by the City upon any Third Party (including, but not limited to, any condition or requirement imposed pursuant to any contract or in conjunction with approvals or permits obtained pursuant to any zoning, land use, construction or other development regulation) which requires the relocation of Grantee’s Facilities within the Rights-of-Way shall be a condition or requirement causing relocation of Grantee’s Facilities to occur subject to the provisions of Subsection B above; provided, however in the event the City reasonably determines and notifies Grantee that the primary purpose of imposing such condition or requirement upon such Third party is to cause or facilitate the construction of a Public Works Project to be undertaken within a segment of the Right-of-Ways on the City’s behalf and consistent with the City’s Capital Facility Plan or Transportation Improvement Program, then Grantee shall relocate its Page 19 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 11 of 27 Facilities within such segment of the Rights-of-Way in accordance with this Agreement. D. As to any relocation of Grantee’s Facilities whereby the cost and expense thereof is to be borne by Grantee in accordance with this Section 11, Grantee may, after receipt of written notice requesting such relocation, submit in writing to the City alternatives to relocation of its Facilities. Upon the City’s receipt from Grantee of such written alternatives, the City shall evaluate such alternatives and shall advise Grantee in writing if one or more of such alternatives are suitable to accommodate the work which would otherwise necessitate relocation of Grantee’s Facilities. In evaluating such alternatives, the City shall give each alternative proposed by Grantee full and fair consideration with due regard to all facts and circumstances which bear upon the practicality of relocation and alternatives to relocation. In the event the City determines that such alternatives are not appropriate, Grantee shall relocate its Facilities as otherwise provided in this Agreement. E. Nothing in this Section 11 shall require Grantee to bear any cost or expense in connection with the relocation of any facilities under benefit of easement independent of this Agreement or other rights not arising under this Agreement, nor shall anything in this Section 11 require the City to bear any such cost or expense. Nothing in this Section 11 shall be construed to be a waiver of any right of either Grantee or the City to contest any claim or assertion by the other of responsibility to pay such cost or expense. F. Subject to ACC 20.10.160, in the event of an emergency posing a threat to public safety or welfare requires the relocation of Grantee’s Facilities within the Rights-of-Way, the City shall give Grantee notice of the emergency as soon as reasonably practicable. Upon receipt of such notice from the City (and subject to the issuance of any necessary order(s) of the Federal Energy Regulatory Commission), Grantee shall endeavor to respond as soon as reasonably practicable to relocate the affected Facilities. Section 12. Abandonment and or Removal of Grantee Facilities A. Within one hundred and eighty days (180) of Grantee’s permanent cessation of use of the Grantee Facilities, or any portion thereof, the Grantee shall (subject to any necessary approval(s) and/or order(s) to be provided by FERC concerning abandonment), at the City’s discretion, either abandon in place or remove the affected facilities. Abandonment or removal shall be at the sole cost Page 20 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 12 of 27 and expense of Grantee. Any Facilities left in place shall be made inert by disconnecting and sealing such Facilities, all in compliance with applicable regulations and industry standards. The City’s consent shall not relieve Grantee of the obligation and/or costs to subsequently remove or alter such Facilities in the event the City reasonably determines that such removal or alteration is necessary or advisable for the health and safety of the public, in which case Grantee shall perform such work at no cost to the City. The obligations contained in this Section shall survive the expiration, revocation, or termination of this Agreement. Section 13. Encroachment Management Grantee shall manage and inspect encroachments as defined by federal and applicable state and local laws, rules, regulations and industry standards, as now enacted or hereinafter amended, and any other future laws or regulations that are applicable to Grantee, the Facilities, and business operations. Upon notification to Grantee of planned construction by another within ten (10) feet of Grantee’s pipeline, Grantee shall flag the precise location of its Facilities before the construction commences, provide a representative to inspect the construction when it commences, and periodically inspect thereafter to ensure that Grantee’s pipeline is not damaged by the construction. Section 14. Emergency Management, Leaks, Ruptures, and Emergency Response. A. Annually, upon the request of the City, Grantee shall meet with the Valley Regional Fire Authority, the Auburn Police Department, and the City’s Emergency Management Office to coordinate emergency management operations and, at least once a year, at the request of the City, Grantee personnel shall actively participate with the Valley Regional Fire Authority and the City in emergency preparedness drills or planning sessions. B. Grantee shall have in place, at all times during the term of this Agreement, a system for remotely monitoring pressures and flows across the Right-of-Way. C. During the term of this Agreement, Grantee shall have a written emergency response plan and procedure for locating leaks and ruptures and for shutting down valves as rapidly as possible. Page 21 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 13 of 27 D. Upon acceptance of this Agreement, Grantee shall provide the City with a copy of its emergency response plans and procedures, including, but not limited to, emergency rupture response. E. Grantee's emergency plans and procedures shall designate Grantee’s responsible local emergency response officials and a direct twenty four (24) hour emergency contact number for the control center operator. grantee shall, after being notified of an emergency, cooperate with the City and make every effort to respond as soon as possible to protect the public's health, safety and welfare. F. Grantee shall be solely responsible for all its necessary costs incurred in responding to any leak, rupture or other release of petroleum products from Grantee's Facilities, including, but not limited to, detection and removal of any contaminants from air, earth or water, and all remediation costs. G. If requested by the City in writing, Grantee shall provide a written summary concerning any leak or rupture within thirty (30) days of the event, including, but not limited to, the leak or rupture's date, time, amount, location, response, remediation and other agencies Grantee has notified. Section 15. Maintenance, Inspection, and Testing. Grantee shall remain solely and separately liable for the function, testing, maintenance, replacement and/or repair of the Facilities or other activities permitted under this Agreement. Grantee shall operate, maintain, inspect, and test the Facilities in full compliance with all applicable federal, state, and local laws, rules, regulations, and industry standards, as now enacted or hereinafter amended, and any other future laws or regulations that are applicable to Grantee, the Facilities, and business operations. Section 16. Indemnification and Hold Harmless A. The Grantee shall defend, indemnify, and hold the harmless from any and all costs, claims, injuries, damages, losses, suits, or liabilities of any nature including attorneys’ fees arising out of or in connection with the Grantee’s performance under this Franchise, except to the extent such costs, claims, injuries, damages, losses, suits, or liabilities are caused by the sole negligence of the City. B. The Grantee shall hold the City harmless from any liability arising out of or in connection with any damage or loss to the Grantee Facilities caused by Page 22 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 14 of 27 maintenance and/or construction work performed by, or on behalf of, the City within 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, or its agent performing such work. 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-party costs, claims, injuries, damages, losses, suits, or liabilities based on the City’s failure or inability to provide such services. D. Acceptance or inspection by the City of any work performed by the Grantee shall not be grounds for avoidance of this section. It is further specifically and expressly understood that the indemnification provided herein constitutes the Grantee’s waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. E. Grantee shall indemnify, defend and hold the City, its appointed and elective officials, agents, officers, employees, and volunteers harmless from and against any and all claims, demands, liability, loss, cost, damage or expense of any nature whatsoever including all costs and attorney’s fees, made against the City on account of violation of any environmental laws applicable to the Grantee Facilities, or from any release of or hazardous substances on or from the Grantee Facilities. This indemnity includes, but is not limited to: (a) liability for a governmental agency’s costs of removal or remedial action for hazardous substances; (b) damages to natural resources caused by hazardous substances, including the reasonable costs of assessing such damages; (c) liability for any other person’s costs of responding to hazardous substances; and (d) liability for any costs of investigation, abatement, correction, cleanup, fines, penalties, or other damages arising under any environmental laws. Page 23 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 15 of 27 Section 17. Insurance A. The Grantee shall procure and maintain, or cause its contractors to maintain (in the case of Professional Liability), for the duration of this Franchise, 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 $2,000,000.00 (two million dollars) 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 $100,000,000.00 (one hundred million dollars) each occurrence, $100,000,000.00 (one hundred million dollars) general aggregate and a $100,000,000.00 (one hundred million dollars) 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, stop gap liability, and personal injury and advertising injury and liability assumed under an insured contract. There shall be no endorsement or modification of the Commercial General Liability insurance for liability arising from explosion, collapse, or underground property damage. To the extent of the liabilities assumed by Grantee, 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 Franchise 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 $1,000,000.00 per claim for all professional engineers or surveyors contracted by Grantee to perform services under this Franchise. 4. Workers’ Compensation coverage as required by the Industrial Insurance laws of the State of Washington. Page 24 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 16 of 27 B. The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability, Professional Liability (if applicable), 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. To the extent of the liabilities assumed by Grantee, 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 certified mail, return receipt requested, 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 and a copy of amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements specified herein before commencement of the work. 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. Furthermore, Grantee may utilize a combination of primary and excess insurance policies to satisfy the requirements specified herein. F. Grantee’s maintenance of insurance as required by this Franchise 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. G. Pollution Legal Liability, to be in effect throughout the term of this Franchise, with a limit not less than $50,000,000 per occurrence and in the aggregate to the extent such coverage is reasonably available in the marketplace. If the Pollution Legal Liability coverage is purchased on a “claims made” basis, then the Grantee warrants continuation of coverage, either through policy renewals or the purchase of an extended discovery period, if such extended coverage is Page 25 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 17 of 27 available, for not less than three (3) years from the date of termination of this Franchise and/or conversion from a “claims made” form to an “occurrence” coverage form. H. Any deductibles shall be the sole responsibility of the Grantee. The insurance certificate required by this section shall contain a clause stating that coverage shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the aggregate limits of the insurer’s liability. I. The indemnity and insurance provisions herein under Sections 16 and 17 shall survive the termination of this Franchise and shall continue for as long as the Grantee’s Facilities shall remain in or on the Franchise Area or until the parties execute a new Franchise agreement that modifies or terminates these indemnity or insurance provisions. Section 18. Performance Security The Grantee shall provide the City with a financial guarantee in the amount of Fifty Thousand Dollars ($50,000.00) running for, or which shall annually automatically renew over, the term of this Franchise, in a form and substance acceptable to the City. In the event Grantee shall fail to substantially comply with any one or more of the provisions of this Franchise, then there shall be recovered jointly and severally from the principal and any surety of such financial guarantee any damages suffered by City as a result thereof, including but not limited to staff time, material and equipment costs, compensation or indemnification of third parties, and the cost of removal or abandonment of facilities hereinabove described. Grantee specifically agrees that its failure to comply with the terms of Section 22 (Enforcement & Remedies) shall constitute damage to the City in the monetary amount set forth therein. Such a financial guarantee shall not be construed to limit the Grantee’s liability to the guarantee amount, or otherwise limit the City’s recourse to any remedy to which the City is otherwise entitled at law or in equity. Section 19. Relationship of the Parties A. Nothing in this Agreement shall be construed to create or confer any right or remedy upon any person(s) other than the City and Grantee. No action may be commenced or prosecuted against any Party by any Third Party claiming as a Third Party beneficiary of this Agreement. This Agreement shall not release or discharge any obligation or liability of any Third Party to either Party. Page 26 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 18 of 27 B. Nothing contained in this Agreement shall be construed to create an association, trust, partnership, agency relationship, or joint venture or to impose a trust, partnership, or agency duty, obligation or liability on or with regard to any party. Each party shall be individually and severally liable for its own duties, obligations, and liabilities under this Agreement. C. Grantee accepts any privileges granted by the City in an "as is" condition. Grantee agrees that the City has never made any representations, implied or express warranties or guarantees as to the suitability, security or safety of Grantee's location of facilities or the facilities themselves in public property or rights of way or possible hazards or dangers arising from other uses of the public rights of way or other public property by the City or the general public. Grantee shall remain solely and separately liable for the function, testing, maintenance, replacement and repair of the pipeline or other activities permitted under this Agreement. D. Except as specifically provided herein, this Agreement shall not create any duty of the City or any of its officials, employees or agents and no liability shall arise from any action or failure to act by the City or any of its officials, employees or agents in the exercise of powers reserved to the City. Further, this Agreement is not intended to acknowledge, create, imply or expand any duty or liability of the City with respect to any function in the exercise of its police power or for any other purpose. Any duty that may be deemed to be created in the City shall be deemed a duty to the general public and not to any specific party, group or entity. Section 20. 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 Franchise shall not be leased, assigned or otherwise alienated without the express prior consent of the City by ordinance. C. Grantee and any proposed assignee or transferee shall provide and certify the following to the City not less than sixty (60) days prior to the proposed date of transfer: (a) Complete information setting forth the nature, term and Page 27 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 19 of 27 conditions of the proposed assignment or transfer; (b) All information required by the City of an applicant for a Franchise 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. Prior to the City’s consideration of a request by Grantee to consent to a Franchise assignment or transfer, the proposed Assignee or Transferee shall file with the City a written promise to unconditionally accept all terms of the Franchise, effective upon such transfer or assignment of the Franchise. The City is under no obligation to undertake any investigation of the transferor’s state of compliance and failure of the City to insist on full compliance prior to transfer does not waive any right to insist on full compliance thereafter. Section 21. 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 thirty (30) 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, then the City and the Grantee hereby agree that the matter shall be referred to mediation. The City and the Grantee shall mutually agree upon a mediator to assist them in resolving their differences, and any expense incidental to mediation shall be borne equally by the parties. C. If either the City or the Grantee are dissatisfied with the outcome of the mediation, that party may then pursue any available judicial remedies. This Franchise 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. Page 28 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 20 of 27 D. Subject to state and federal regulation, the Grantee shall be permitted to continuously operate its Facilities during dispute resolution. Section 22. Enforcement and Remedies A. If the Grantee shall willfully violate, or materially breaches any of the provisions of this Franchise through willful or unreasonable 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 breach cannot be cured within thirty days, the Parties shall agree upon a reasonable period of time for cure, 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 City may, at its discretion, either (1) revoke the Franchise with no further notification, or (2) claim damages as provided in ACC 20.10.340per day against the financial guarantee set forth in Section 18 for every day after the expiration of the cure period that the breach is not cured. B. Should the City determine that Grantee is acting beyond the scope of permission granted herein for Grantee Facilities and Grantee Services, the City shall initiate dispute resolution as set forth in Section 21, above. Should Grantee fail to participate in dispute resolution in accordance with Section 21, above, or should Grantee fail to comply with any order by a court addressing the dispute, the City reserves the right to cancel this Franchise upon thirty days (30) written notice to Grantee and require 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 applicable federal and state or City laws, to compel Grantee to cease such actions. Section 23. Compliance with Laws and Regulations A. In carrying out any authorized activities under the privileges granted herein, Grantee shall meet accepted industry standards and comply with all applicable laws, rules, and regulations, of any governmental entity with jurisdiction over the pipeline and its operation (specifically including, but not limited to, all applicable requirements, rules, regulations, and orders of FERC). This shall include all applicable laws, rules and regulations existing at the Effective Date of this Franchise or that may be subsequently enacted by any governmental entity Page 29 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 21 of 27 with jurisdiction over Grantee or the pipeline(s) and the Facilities. 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 Franchise Area. B. Unless pre-empted by or in conflict with the provisions of any Federal or State statute or regulation, the City reserves the right at any time to amend this Franchise 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 call for negotiations, the City may enact the proposed amendment, by incorporating the Grantee’s concerns to the maximum extent the City deems possible. C. The City may terminate this Franchise upon thirty (30) days written notice to the Grantee, if the Grantee fails to comply with such amendment or modification. Section 24. License, Tax and Other Charges This Franchise 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 the Franchise Area. Section 25. 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. Page 30 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 22 of 27 Section 26. Force Majeure In the event that either Party is prevented or delayed in the performance of any of its obligations under this Agreement by reason beyond its reasonable control (a “Force Majeure Event”), then that Party’s performance shall be excused during the Force Majeure Event. Force Majeure Events shall include, without limitation, war; civil disturbance; flood, earthquake or other Act of God; laws, regulations, rules or orders of any governmental agency; sabotage; strikes or similar labor disputes involving personnel of a party, its contractors or a Third party; or any failure or delay in the performance by the other party, or a Third Party who is not an employee, agent or contractor of the Party claiming a Force Majeure Event, in connection with this Agreement. Upon removal or termination of the Force Majeure Event, the Party claiming a Force Majeure Event shall promptly perform the affected obligations in an orderly and expedited manner under this Agreement. The Parties shall use all commercially reasonable efforts to eliminate or minimize any delay caused by a Force Majeure Event. The occurrence of a Force Majeure Event shall not alter or impair any of the provisions concerning liability and/or insurance as provided in this Agreement. Section 27. Severability & Survival In the event that a court or agency of competent jurisdiction declares a material provision of this Franchise to be invalid, illegal or unenforceable, the parties shall negotiate in good faith and agree, to the maximum extent practicable in light of such determination, to such amendments or modifications as are appropriate actions so as to give effect to the intentions of the parties as reflected herein. If severance from this Franchise of the particular provision(s) determined to be invalid, illegal or unenforceable will fundamentally impair the value of this Franchise, either party may apply to a court of competent jurisdiction to reform or reconstitute the Franchise so as to recapture the original intent of said particular provision(s). All other provisions of the Franchise shall remain in effect at all times during which negotiations or a judicial action remains pending. All provisions, conditions and requirements of this Franchise that may be reasonably construed to survive the termination or expiration of this Agreement shall survive the termination or expiration of the Agreement. The Parties’ respective rights and interests under this Agreement shall inure to the benefit of their respective successors and assigns. Page 31 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 23 of 27 Section 28. Titles The section titles used herein are for reference only and should not be used for the purpose of interpreting this Franchise. Section 29. Implementation. The parties each represent and warrant that they have full authority to enter into and to perform this Franchise, that they are not in default or violation of any permit, license, or similar requirement necessary to carry out the terms hereof, and that no further approval, permit, license, certification, or action by a governmental authority is required to execute and perform this Franchise, except such as may be routinely required and obtained in the ordinary course of business. Whenever this Franchise sets forth a time for any act to be performed, such time shall be deemed to be of the essence, and any failure to perform within the allotted time may be considered a material violation of this Franchise. Section 30. Entire Agreement This Franchise, as subject to the appropriate city, state, and federal laws, codes, and regulations, and the attachments hereto represent the entire understanding and agreement between the parties with respect to the subject matter and it supersedes all prior oral negotiations between the parties. All previous agreements between the parties pertaining to GRANTEE's operation of its pipeline(s) and/or Facilities are hereby superseded. Section 31. Effective date. This Ordinance shall take effect and be in force five days from and after its passage, approval and publication as provided by law. INTRODUCED: __________________ PASSED: _______________________ APPROVED: ____________________ ________________________________ NANCY BACKUS, MAYOR Page 32 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 24 of 27 ATTEST: ___________________________ Danielle E. Daskam, City Clerk APPROVED AS TO FORM: __________________________ Daniel B. Heid, City Attorney Published: _________________ Page 33 of 106 ...... .... • Olympic Pipe Line Olympic Pipe Line Company, LLC. Franchise Agreement #17-22 KING COUNTY I\ 'H -- -S-28'7'1"HS'f--------1�------ 26TII STNW ---15TH STNW )/ I/ z 0:: 0 :,,: u 0 0:: u z 0 0:: I • II t L +� + Printed On: 1/18/2018 Map ID: 5962 Information sho wn is for general ref erenc e purposes onlyanddoesnotn ecessarltyrepresent exact geographic or cartographic data as mapped. The CityofAuburnmakesno w arrantyasto itsaccurac y. Exhibit A Ordinance No. 6674 Franchise No. 17-22 January 17, 2018 Page 25 of 27 Page 34 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 26 of 27 Exhibit “B” Grantee Facilities and Grantee Services A 14 inch diameter pipeline for the interstate transportation of petroleum products. No local service is provided. Page 35 of 106 ------------------------------ Draft Ordinance No. 6674 Franchise No. 17-22 February 20, 2018 Page 27 of 27 EXHIBIT “C” STATEMENT OF ACCEPTANCE ________________________________, for itself, its successors and assigns, hereby accepts and agrees to be bound by all lawful terms, conditions and provisions of the Franchise attached hereto and incorporated herein by this reference. [Grantee] By: Date: Name: Title: STATE OF _______________) )ss. COUNTY OF _____________ ) On this ____ day of _______________, 2018, before me the undersigned, a Notary Public in and for the State of __________, duly commissioned and sworn, personally appeared, __________________ of _________, 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: Page 36 of 106 AGENDA BILL APPROVAL FORM Agenda Subject: Lakehaven - Auburn Sewer Boundary Adjustment (5 Minutes) (Gaub) Date: March 5, 2018 Department: CD & PW Attachments: Area Map Res olution No. 5353 Exhibit A (Amendment #2) Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: For discussion only. Background Summary: The boundary between the City of Auburn (Auburn) and the Lakehaven Water and Sewer District (Lakehaven) was most recently modified in 2005 by Amendment #1 to their interlocal agreement which added parcels involved in the Jovita Heights development to Auburn’s sewer service area (See the attached map). Sewer extensions that were built as part of that development within 56th Avenue Southeast are adjacent to and able to serve 19 additional parcels that, at the time, remained within Lakehaven’s service area. Lakehaven staff does not forsee sewer service being available to those parcels in the near future and has agreed to modify their sewer service area boundary to allow those parcels to be connected to the existing Auburn public sewer main and to become City of Auburn sewer customers. Resolution No. 5353 authorizes the Mayor to execute Amendment #2 to the interlocal agreement with the Lakehaven Water and Sewer District for the purpose of modifying the sewer service boundary between the City of Auburn and Lakehaven in order to encompass those parcels. Rev iewed by Council Committees: Councilmember:Staff:Gaub Meeting Date:March 12, 2018 Item Number: Page 37 of 106 0.3 NAD_1983_StatePlane_Washington_North_FIPS_4601_Feet Miles0.30.10 Auburn-Lakehaven Sewer Service Area Modification 3/5/2018Printed Date: Map Created by City of Auburn eGIS Imagery Date: May 2015 Information shown is for general reference purposes only and does not necessarily represent exact geographic or cartographic data as mapped. The City of Auburn makes no warranty as to its accuracy. Page 38 of 106 ----------------------------------------- Resolution No. 5353 03/05/18 Page 1 RESOLUTION NO. 5353 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO THE INTERLOCAL AGREEMENT WITH THE LAKEHAVEN WATER AND SEWER DISTRICT FOR THE PURPOSE OF MODIFYING THE SEWER DISTRICT’S SANITARY SEWER SERVICE AREA. WHEREAS, pursuant to RCW 35.A.11.040, Auburn has the legal authority to exercise its powers and perform any of its functions as set forth in RCW 39.34; and WHEREAS, in January 2004 the Commissioners of the Lakehaven Utility District adopted Resolution No. 2004-1006 authorizing the General Manager to execute an interlocal agreement with Auburn, which agreement was subsequently signed by the City of Auburn as authorized under Auburn Resolution No. 3651; and WHEREAS, in March 2005 the Commissioners of the Lakehaven Utility District adopted Resolution No. 2005-1038 authorizing the General Manager to execute an amendment to the interlocal agreement with Auburn, which amendment subsequently signed by the City of Auburn as authorized under Auburn Resolution No. 3824; and WHEREAS, the parties recognize the responsibility of public sanitary sewer utilities to provide efficient and reliable service to their customers at reasonable cost; and Page 39 of 106 ----------------------------------------- Resolution No. 5353 03/05/18 Page 2 WHEREAS, portions of the Auburn sanitary sewer system have been sized with sufficient wastewater conveyance capacity and are situated so as to be capable of affording sewer service to a number of properties that lie within the Lakehaven Sanitary Sewer Service Area and adjacent to Auburn’s Sanitary Sewer Service Area; and WHEREAS, Auburn has evaluated sanitary sewer service issues relative to the adjacent properties and determined that it is feasible for Auburn to provide sanitary sewer service to those properties; and WHEREAS, Lakehaven has evaluated the request and determined that Lakehaven can transfer to Auburn that portion of its Sanitary Sewer Service Area adjacent to the City of Auburn’s infrastructure so that Auburn can provide sanitary sewer service to those properties. NOW, THEREFORE, THE COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RESOLVES as follows: Section 1. The Mayor is hereby authorized to execute an amendment to the Interlocal Agreement with Lakehaven Utility District, in substantial conformity with the agreement attached hereto, marked as Exhibit A and incorporated herein by this reference. Section 2. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directions of this legislation. Page 40 of 106 ----------------------------------------- Resolution No. 5353 03/05/18 Page 3 Section 3. This Resolution shall take effect and be in force upon passage and signatures thereon. DATED and SIGNED on this ____ day of _________________, 2018. CITY OF AUBURN ______________________________ NANCY BACKUS, MAYOR ATTEST: _________________________ Danielle E. Daskam, City Clerk APPROVED AS TO FORM: _________________________ Daniel B. Heid, City Attorney Page 41 of 106 EXHIBIT A TO RESOLUTION 5353 AMENDMENT NO. 2 TO THE LAKEHAVEN WATER AND SEWER DISTRICT AND CITY OF AUBURN INTERLOCAL AGREEMENT ESTABLISHING SANITARY SEWER SERVICE BOUNDARIES Page 42 of 106 ------------------------------------------------------------------- Amendment No. 2 to the Lakehaven Water and Sewer District And the City of Auburn Interlocal Agreement Establishing Sanitary Sewer Service Boundaries AMENDMENT NO. 2 TO THE LAKEHAVEN WATER AND SEWER DISTRICT AND CITY OF AUBURN INTERLOCAL AGREEMENT ESTABLISHING SANITARY SEWER SERVICE BOUNDARIES THIS AGREEMENT, made and entered into this ______ day of _______________2017, by and between LAKEHAVEN WATER AND SEWER DISTRICT, a Washington municipal corporation (hereinafter referred to as "Lakehaven"), and the CITY OF AUBURN, a Washington municipal corporation, (hereinafter referred to as "Auburn"), both being duly organized and existing under and by virtue of the laws of the State of Washington, as an amendment to the lnterlocal Agreement dated February 2, 2004, between the parties and executed on the 8th day of January, 2004, and the 20th day of January, 2004, respectively (hereinafter referred to as "Original Agreement") as amended by Amendment No. 1 to that agreement, dated February 22, 2005, between the parties and executed on the 10th day of March, and the 22nd day of February, 2005, respectively. WITNESSETH: WHEREAS, in January 2004 the Commissioners of the Lakehaven Water and Sewer District adopted Resolution No. 2004-1006 authorizing the General Manager to execute an interlocal agreement with Auburn, which agreement was subsequently signed by the City of Auburn as authorized under Auburn Resolution No. 3651; and WHEREAS, in March 2005 the Commissioners of the Lakehaven Water and Sewer District adopted Resolution No. 2005-1038 authorizing the General Manager to execute an amendment to the interlocal agreement with Auburn, which amendment subsequently signed by the City of Auburn as authorized under Auburn Resolution No. 3824; and WHEREAS, the parties recognize the responsibility of public sanitary sewer utilities to provide efficient and reliable service to their customers at reasonable cost; and WHEREAS, portions of the Auburn sanitary sewer system have been sized with sufficient wastewater conveyance capacity and are situated so as to be capable of affording sewer service to a number of properties that lie within the Lakehaven Sanitary Sewer Service Area and adjacent to Auburn’s Sanitary Sewer Service Area; and WHEREAS, Auburn has evaluated sanitary sewer service issues relative to the adjacent properties and determined that it is feasible for Auburn to provide sanitary sewer service to those properties; and WHEREAS, Lakehaven has evaluated the request and determined that Lakehaven can transfer to Auburn that portion of its Sanitary Sewer Service Area adjacent to the City of Auburn’s infrastructure so that Auburn can provide sanitary sewer service to those properties. Page 43 of 106 ------------------------------------------------------------------- Amendment No. 2 to the Lakehaven Water and Sewer District And the City of Auburn Interlocal Agreement Establishing Sanitary Sewer Service Boundaries NOW, THEREFORE in consideration of their mutual covenants, conditions, and promises, IT IS HEREBY AGREED by and between the parties hereto as follows: ITEM ONE REVISION TO SERVICE AREA BOUNDARY The parties have agreed to modify the mutual sewer service planning boundary as established in the Original Agreement and modified by Amendment No. 1. The properties depicted in Exhibit A and described in Exhibit B are hereby designated to be within the City of Auburn’s sanitary sewer service area and no longer within the Lakehaven Water and Sewer District’s sanitary sewer service area. ITEM TWO REMAINING TERMS UNCHANGED: That all other provisions of the Original Agreement as modified by Amendment No. 1 not herein amended shall remain in full force and effect. IN WITNESS WHEREOF the parties hereto have executed this agreement as of the day and year first below written. LAKEHAVEN WATER AND SEWER DISTRICT Approved by Resolution No. _____________ of the Lakehaven Water and Sewer District, Federal Way, Washington, at its regular meeting held on the ________ day of _____________, 2017. By: _________________________ Approved as to Form: _________________________ CITY OF AUBURN Approved by Resolution No. ________ of the City of Auburn, Washington, at its regular meeting held on the _____ day of ________________, 2017. Page 44 of 106 ------------------------------------------------------------------- Amendment No. 2 to the Lakehaven Water and Sewer District And the City of Auburn Interlocal Agreement Establishing Sanitary Sewer Service Boundaries By: _________________________ Attest: Approved as to form: _________________________ _________________________ Page 45 of 106 ------------------------------------------------------------------- Amendment No. 2 to the Lakehaven Water and Sewer District And the City of Auburn Interlocal Agreement Establishing Sanitary Sewer Service Boundaries Page 46 of 106 ------------------------------------------------------------------- Amendment No. 2 to the Lakehaven Water and Sewer District And the City of Auburn Interlocal Agreement Establishing Sanitary Sewer Service Boundaries Page 47 of 106 AGENDA BILL APPROVAL FORM Agenda Subject: 4th Quarter 2017 Financial Report (20 Minutes) (Coleman) Date: March 5, 2018 Department: Finance Attachments: Q4 2017 Financial Report Budget Impact: Administrativ e Recommendation: For discussion only. Background Summary: The quarterly financial report summarizes the general state of Citywide financial affairs and highlights significant items or trends that the City Council should be aware of. The attachment provides the year to date through December 2017 status report based on financial data available as of February 5, 2018 for the period ending December 31, 2017 and sales tax information representing business activity that occurred through October 2017. Rev iewed by Council Committees: Councilmember:Staff:Coleman Meeting Date:March 12, 2018 Item Number: Page 48 of 106 Quarterly Financial Report Through Q4-2017 General Fund Summary Property TaxesSales TaxesOther TaxesIntergovernmental(Grants, etc.)DevelopmentService FeesCulture &RecreationOther Fees& ChargesOtherRevenuesPersonnelSupplies& ServicesIntergovernmentalOther ExpendituresRevenues Expenditures $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 MillionsYE Budget YE Actuals (Favorable) YE Actuals (Unfavorable) General Fund Revenues and Expenditures(Through December 2017) Council& MayorAdministrativeServicesCommunity &Human ServicesMunicipal Court& ProbationHumanResourcesFinanceCity AttorneyCommunityDevelopmentJail - SCOREPolicePublic WorksParks, Arts& RecreationStreetsNon-Departmental$0 $5 $10 $15 $20 $25 $30 MillionsYE Budget YE Actuals (Favorable) YE Actuals (Unfavorable) General Fund Expenditures by Department (Through December 2017) 1 Page 49 of 106 Quarterly Financial Report Through Q4-2017 2 General Fund 2016 Summary of Sources and Uses Annual YE YE YE Budget Budget Actual Actual Amount Operating Revenues Property Tax 6 20,652,000$ 20,652,000$ 20,837,874$ 17,932,830$ 185,874 0.9 % Sales Tax 7-8 14,746,000 14,746,000 14,949,407 14,628,045 203,407 1.4 % Sales Tax - Pierce County Parks 75,000 75,000 95,750 89,495 20,750 27.7 % Sales Tax - Annexation Credit 2,032,100 2,032,100 2,085,949 2,006,028 53,849 2.6 % Criminal Justice Sales Tax 1,889,400 1,889,400 2,038,296 1,968,679 148,896 7.9 % Brokered Natural Gas Tax 351,800 351,800 176,067 223,900 (175,733)(50.0)% City Utilities Tax 9-10 3,936,300 3,936,300 3,890,304 3,959,131 (45,996)(1.2)% Admissions Tax 317,000 317,000 422,280 378,760 105,280 33.2 % Electric Tax 9-10 3,560,000 3,560,000 3,694,954 3,525,357 134,954 3.8 % Natural Gas Tax 9-10 1,001,200 1,001,200 1,072,751 946,959 71,551 7.1 % Cable Franchise Fee 11 971,500 971,500 1,009,432 977,736 37,932 3.9 % Cable Utility Tax - New 2017 12 1,000,000 1,000,000 801,150 - (198,850)(19.9)% Cable Franchise Fee - Capital 66,200 66,200 66,428 66,315 228 0.3 % Telephone Tax 9-10 1,451,800 1,451,800 1,379,949 1,494,354 (71,851)(4.9)% Garbage Tax (external)9-10 120,000 120,000 129,831 124,007 9,831 8.2 % Leasehold Excise Tax 40,000 40,000 203,034 204,446 163,034 407.6 % Gambling Excise Tax 300,300 300,300 324,309 494,472 24,009 8.0 % Taxes sub-total 52,510,600$ 52,510,600$ 53,177,765$ 49,020,516$ 667,165$ 1.3 % Business License Fees 12-13 222,100$ 222,100$ 163,347$ 224,876$ (58,753)(26.5)% Building Permits 14 1,575,000 1,575,000 1,191,974 2,008,970 (383,026)(24.3)% Other Licenses & Permits 541,600 541,600 551,475 750,580 9,875 1.8 % Intergovernmental (Grants, etc.)15 6,129,110 6,129,110 6,104,610 5,737,079 (24,500)(0.4)% Charges for Services:16-18 General Government Services 16 60,700 60,700 72,710 76,218 12,010 19.8 % Public Safety 16 875,700 875,700 887,535 638,440 11,835 1.4 % Development Services Fees 17 1,007,600 1,007,600 906,687 1,046,249 (100,913)(10.0)% Culture and Recreation 18 2,319,680 2,319,680 2,375,807 2,316,824 56,127 2.4 % Fines and Penalties 19-20 876,100 876,100 882,255 905,921 6,155 0.7 % Fees/Charges/Fines sub-total 13,607,590$ 13,607,590$ 13,136,398$ 13,705,158$ (471,192)$ (3.5)% Interest and Investment Earnings 20-21 69,000$ 69,000$ 237,532$ 110,800$ 168,532 244.2 % Rents and Leases 20-21 715,300 715,300 879,059 783,930 163,759 22.9 % Contributions and Donations 20-21 35,000 35,000 47,926 32,435 12,926 36.9 % Other Miscellaneous 20-21 232,500 232,500 308,578 286,520 76,078 32.7 % Transfers In 79,000 79,000 79,000 217,482 0 0.0 % Insurance Recoveries - Capital & Operating 25,000 25,000 134,103 83,737 109,103 436.4 % Other Revenues sub-total 1,155,800$ 1,155,800$ 1,686,198$ 1,514,904$ 530,398$ 45.9 % Total Operating Revenues 67,273,990$ 67,273,990$ 68,000,361$ 64,240,577$ 726,371$ 1.1 % Operating Expenditures Council & Mayor 1,240,618$ 1,240,618$ 1,136,527$ 1,065,395$ 104,091$ 8.4 % Administration 1,640,533 1,640,533 1,434,930 1,197,355 205,603 12.5 % Community & Human Services 1,103,040 1,103,040 1,076,539 872,023 26,501 2.4 % Municipal Court & Probation 2,577,954 2,577,954 2,465,944 2,242,473 112,010 4.3 % Human Resources 1,409,871 1,409,871 1,279,436 1,283,702 130,435 9.3 % Finance 1,500,893 1,500,893 1,433,788 1,169,633 67,105 4.5 % City Attorney 2,279,653 2,279,653 2,038,930 1,883,009 240,723 10.6 % Community Development 4,803,783 4,803,783 4,225,865 4,109,092 577,918 12.0 % Jail - SCORE 3,878,150 3,878,150 3,794,872 4,019,473 83,278 2.1 % Police 26,897,517 26,897,517 24,947,225 23,430,625 1,950,292 7.3 % Public Works 3,547,418 3,547,418 2,957,741 2,945,815 589,677 16.6 % Parks, Arts & Recreation 12,240,387 12,240,387 12,030,393 11,322,293 209,994 1.7 % Streets 3,798,094 3,798,094 3,677,312 3,209,370 120,782 3.2 % Non-Departmental 6,264,415 6,264,415 4,327,753 3,934,038 1,936,662 30.9 % Total Operating Expenditures 73,182,326$ 73,182,326$ 66,827,255$ 62,684,298$ 6,355,071$ 8.7 % 2017 2017 YE Budget vs. Actual Favorable (Unfavorable) Percentage Page Ref 2 Page 50 of 106 Quarterly Financial Report Through Q4-2017 3 Executive Summary This Executive Summary provides an overview of the City’s overall financial position for the fiscal period ending December 31, 2017, reflecting financial data available as of February 5, 2018. General Fund: In 2017, General Fund revenues totaled $68.0 million compared to a budget of $67.3 million, and were $3.8 million higher than revenues collected during 2016. Some notable variances to budget this year include: • Property tax collections in 2017 totaled $20.8 million, which was 0.9% or $186,000 above budget expectations and exceeded 2016 collections by $2.9 million, or 16.2%. This year-over-year increase in property tax collections was attributable to an increase in new construction and the use of banked capacity. [page 6] • General Fund retail sales tax revenues totaled $14.9 million, and exceeded budget by 1.4% or $203,000, and exceeded 2016 collections by $321,000 or 2.2%. The primary area of significant increase in sales activity compared to 2016 collections was seen in the automotive category. [pages 7-8] • The other taxes category performed favorably to budget in 2017, with revenues totaling $13.2 million compared to a budget of $13.1 million. Electric tax and admission tax revenues collected in 2017 exceeded budget by $135,000 and $105,000, respectively. In addition, leasehold excise taxes collected were $163,000 higher than budget. These revenues were somewhat offset by unfavorable variances in brokered natural gas tax revenues and telephone tax revenues of $176,000 and $72,000, respectively. Cable utility tax revenues were $199,000 below budget through the fourth quarter, although this is just a timing issue whereby Q4-2017 cable tax revenues in the amount of $267,000 were not received until January 2018. [pages 9-12] • Building permit revenue collected in 2017 totaled $1.2 million, compared to a budget of $1.6 million. The volume of building permits issued in 2017 was 680, which represents a 20.0% decline over the number of permits issued in 2016. In addition, there was a 40.4% decline in the average valuation of the projects for which permits have been issued compared to valuations in 2016. [page 14] • Development services revenues collected in 2017 were $101,000, or 10.0%, unfavorable to budget. This variance was predominately due to plan check revenues not meeting budget expectations. [page 17] Ending 2017 fund balances will not be finalized until approximately June 2017 pending final year-end adjustments and certification by the State Auditor’s Office. Once the final ending 2017 fund balances are available, budgeted beginning 2018 fund balances will be reconciled and adjusted accordingly. General Fund expenditures in 2017 totaled $66.8 million compared to a budget of $73.2 million, representing an 8.7% favorable variance to budget. All departments operated within their allocated budget in 2017. 3 Page 51 of 106 Quarterly Financial Report Through Q4-2017 4 General Fund expenditures in 2017 were $4.1 million, or 6.6% higher than in 2016. Salary and benefit costs increased by $2.5 million, or 7.2%, compared to 2016. This year-over-year increase was due primarily to an increase in Council approved FTEs (Full Time Equivalents) and increased costs associated with healthcare and pension benefits. In addition, interfund charges for services increased $850,000, or 11.0%, compared to 2016. These increases were mostly seen in equipment repair and replacement expenditures for fleet vehicles. Street Funds: The City’s three street funds are special revenue funds wherein the revenue sources and expenditures are legally restricted. These funds are used for street capital construction projects, local street repair, and arterial street repair and preservation projects. In 2017, Arterial Street Fund revenues totaled $8.4 million as compared to collections of $4.2 million in 2016, while expenditures totaled $9.7 million as compared to expenditures of $6.8 million last year. [pages 24–25] Local Street Fund revenues of $2.8 million exceeded budget expectations through year-end by $905,000 or 47.4%, due to higher than anticipated sales tax revenues from local construction projects; last year’s collections through year-end totaled $2.5 million. Expenditures were $2.2 million as compared with $2.1 million in 2016. [pages 26–27] Lastly, the Arterial Street Preservation Fund revenues totaled $3.9 million in 2017 as compared to $2.1 million in 2016, while expenditures totaled $5.0 million versus $1.1 million in 2016. Historically, the majority of expenditures in all three street funds occur during the second half of the year when weather conditions are optimal for pavement construction. [pages 28–29] $67.3 M $73.2 M $68.0 M $66.8 M $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 Revenues Expenditures $ Millions General Fund Revenues vs. Expenditures Through Q4-2017 2017 YE Actual 2017 YE Budget 4 Page 52 of 106 Quarterly Financial Report Through Q4-2017 5 Enterprise Funds: The City’s seven enterprise funds account for operations with revenues primarily provided from user fees, charges or contracts for services. In 2017, the Water Fund experienced operating income before depreciation of $5.7 million compared to $4.7 million in 2016. This increase is largely due to lower expenditures in 2017 compared to 2016, during which the City purchased water from the City of Tacoma. The Sewer Fund ended the year with operating income before depreciation of $2.3 million versus $2.1 million in 2016. The Sewer-Metro Fund operating revenues exceeded expenditures by $421,000 as compared to $297,000 in 2016. The Stormwater Fund ended the year with operating income before depreciation of $2.6 million compared to $2.7 million in 2016. The Solid Waste Fund ended 2017 with operating income of $612,000, compared to $889,000 in 2016. [pages 31–34] 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 had sufficient revenues to cover year-end expenditures. [page 35] Investment Portfolio: The City’s total cash and investments at the end of 2017 totaled $133.8 million, and compares to $128.0 million at the end of 2016. [attachment] 5 Page 53 of 106 Quarterly Financial Report Through Q4-2017 6 General Fund Revenues The combined total of property, sales/use, utility, gambling, and admissions taxes provides approximately 80% of all resources supporting general governmental activities. The following section provides additional information on these sources. Property Tax collections in 2017 totaled $20.8 and were $186,000, or 0.9%, above budget expectations. Property tax revenue collected in 2017 exceeded collections in 2016 by $2.9 million, or 16.2%. This year-over-year increase in property tax collections is attributable to an increase in new construction and the use of banked capacity. The majority of property taxes are collected during the months of April and October, coinciding with the due dates for the County property tax billings. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 $22.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsProperty Taxes 2017 Budget 2017 YE Actual 2016 Actual $12.9 $14.4 $15.8 $17.2 $17.9 $20.8 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 2012 2013 2014 2015 2016 2017MillionsProperty Tax Revenue Actuals 6 Page 54 of 106 Quarterly Financial Report Through Q4-2017 7 Sales tax collections in 2017 totaled $17.6 million, of which $14.9 million was distributed to the General Fund and $2.6 million was distributed to the Local Street Fund (SOS) program as per financial policy. Total sales tax revenue distributions to the General Fund in 2017 exceeded budget expectations by $203,000, or 1.4%. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsSales & Use Tax (Net of Revenue from Construction) 2017 Budget 2017 YE Actual 2016 Actual $13.0 $12.4 $13.8 $14.5 $14.6 $14.9 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 2012 2013 2014 2015 2016 2017MillionsSales and Use Tax General Fund Only Actuals 7 Page 55 of 106 Quarterly Financial Report Through Q4-2017 8 The following table breaks out the City’s base sales taxes, excluding Pierce County Parks Sales Tax, Criminal Justice Sales Tax, and Annexation Credit Sales Tax, by major business sector. Total sales tax revenue collected in 2017 totaled $17.6 million and exceeded prior year collections by $661,000, or 3.9%. The business sectors showing the largest increase in revenues compared to last year were the construction, automotive, and wholesale trade categories. Sales tax revenue on construction is transferred to the Local Street Fund (Fund 103) for local street repair and maintenance. In 2017, this totaled $2.6 million, which was $340,000 more than what was collected last year, and exceeds the 2017 budget by $882,000. 2016 2017 Component Group Actual Actual Amount Construction 2,292,280$ 2,632,107$ 339,827$ 14.8 % Manufacturing 761,091 677,596 (83,495)(11.0)% Transportation & Warehousing 99,439 88,502 (10,937)(11.0)% Wholesale Trade 1,264,976 1,363,083 98,107 7.8 % Automotive 3,659,497 3,971,531 312,034 8.5 % Retail Trade 4,852,592 4,871,580 18,988 0.4 % Services 3,926,336 3,911,740 (14,596)(0.4)% Miscellaneous 64,114 65,374 1,260 2.0 % YE Total 16,920,325$ 17,581,514$ 661,189$ 3.9 % Comparison of Sales Tax Collections by SIC Group Through December Change from 2016 Percentage $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsSales Tax on Construction Transfer 2017 Budget 2017 YE Actual 2016 Actual 8 Page 56 of 106 Quarterly Financial Report Through Q4-2017 9 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 in 2017 totaled $10.2 million and exceeded budget expectations by $98,000, or 1.0%. $1.9 $1.8 $2.3 $2.3 $2.6 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 2012 2013 2014 2015 2016 2017MillionsSales Tax On Construction Revenue Actuals $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsUtility Tax 2017 Budget 2017 YE Actual 2016 Actual 9 Page 57 of 106 Quarterly Financial Report Through Q4-2017 10 Favorable variances in electric and natural gas revenues offset lower collections in telephone utility taxes and City utility taxes. 2016 2017 2017 Utility Tax Type YE Actual YE Budget YE Actual Amount Amount City Interfund Utility Taxes 3,959,131$ 3,936,300$ 3,890,304$ $ (68,827)(1.7)% $ (45,996)(1.2)% Electric 3,525,357 3,560,000 3,694,954 169,596 4.8 %134,954 3.8 % Natural Gas 946,959 1,001,200 1,072,751 125,791 13.3 %71,551 7.1 % Telephone 1,494,354 1,451,800 1,379,949 (114,405) (7.7)%(71,851) (4.9)% Solid Waste (external)124,007 120,000 129,831 5,824 4.7 %9,831 8.2 % YE Total 10,049,809$ 10,069,300$ 10,167,789$ $ 117,980 1.2 % $ 98,489 1.0 % Through December 2017 Utility Tax by Type 2017 vs. 2016 Actual 2017 vs. Budget Percentage Percentage $9.2 $9.5 $10.0 $9.7 $10.0 $10.2 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 2012 2013 2014 2015 2016 2017MillionsUtility Tax Revenues Actuals 10 Page 58 of 106 Quarterly Financial Report Through Q4-2017 11 Cable Franchise Fees, which are collected quarterly, totaled $1.0 million and exceeded budget by $38,000, or 3.9%. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable Franchise Fee 2017 Budget 2017 YE Actual 2016 Actual $0.8 $0.9 $0.9 $0.9 $1.0 $1.0 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 2012 2013 2014 2015 2016 2017MillionsCable Franchise Fee Actuals 11 Page 59 of 106 Quarterly Financial Report Through Q4-2017 12 Cable Utility Tax (New in 2017). In September 2016, City Council approved Ordinance No. 6620, which increased the Cable Utility Tax from 1.0% to 6.0%, with the entirety of the new tax amount benefitting the General Fund. This tax became effective on January 1, 2017 and is collected quarterly. Although this revenue stream appears to be unfavorable to budget through the end of 2017, this is just a timing issue whereas the revenues generated for October through December 2017 in the amount of $267,000 was collected in January 2018. Including the payment received in January 2018, the distributions totaled $1,068,000 and exceeded the budget expectation of $1,000,000 by 6.8%. Licenses and Permits include business licenses, building permits, plumbing, electric and other licenses and permit fees. Building permit fees and business licenses make up about 70% of the annual budgeted revenue in this category. Business license revenues collected in 2017 totaled $163,000, compared to a budget of $222,000. While this appears to be an unfavorable variance to budget, it is actually a timing issue where the majority of business owners paid their 2018 business license fees in January 2018. $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable Utility Tax -New 2017 2017 Budget 2017 YE Actual 2016 Actual 12 Page 60 of 106 Quarterly Financial Report Through Q4-2017 13 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsBusiness Licenses 2017 Budget 2017 YE Actual 2016 Actual $232 $236 $171 $282 $225 $163 $0 $50 $100 $150 $200 $250 $300 $350 2012 2013 2014 2015 2016 2017ThousandsBusiness License Revenues Actuals 13 Page 61 of 106 Quarterly Financial Report Through Q4-2017 14 Building permit revenues collected in 2017 totaled $1.2 million compared to 2016 collections of $2.0 million. This year-over-year decline in building permit revenues is due to the combination of a lower number of building permits issued and a decrease in the average valuation of each project. Total permits sold in 2017 was 680 as compared with 850 sold in 2016, representing a 20.0% reduction. In addition, the average construction value per permit issued declined by 40.4%, which indicates that there weren’t as many large projects permitted in 2017. Of the permit revenues collected in 2017, 39% was attributable to commercial projects and the remaining 61% was predominately single family housing permits. Major projects contributing to permit revenues in 2017 include Boeing, North Auburn Logistics, the Holiday Inn Express, LA Fitness, and Dave & Buster’s as well as numerous single family housing permits – most notably in Canyon Creek and Calla Crest. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsBuilding Permits 2017 Budget 2017 YE Actual 2016 Actual $1.7 $2.1 $1.5 $1.2 $2.0 $1.2 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2012 2013 2014 2015 2016 2017MillionsBuilding Permits Actuals 14 Page 62 of 106 Quarterly Financial Report Through Q4-2017 15 Intergovernmental revenues include grants (direct and indirect Federal, state and local), compact revenue from the Muckleshoot Indian Tribe (MIT), intergovernmental service revenues, and state shared revenues. Collections in 2017 totaled $6.1 million and ended the year $25,000, or 0.4%, under budget. Favorable variances in revenues collected from the Muckleshoot Casino services reimbursement and Criminal Justice High Crime revenues were somewhat offset by reduced revenues collected in Federal grants. Federal grant reimbursements in 2017 were significantly lower than budget expectations primarily due to the delayed hiring of the police officers who are to be partially funded by the Federal COPS (Community Oriented Policing Services) grant. 2016 2017 2017 Revenue YE Actual YE Budget YE Actual Amount Amount Federal Grants 294,006$ 630,715$ 241,952$ $ (52,055)(17.7)% $ (388,763)(61.6)% State Grants 162,692 184,295 189,238 26,546 16.3 %4,943 2.7 % Interlocal Grants 45,973 107,000 96,322 50,349 0.0 %(10,678) (10.0)% Muckleshoot Casino Services 668,629 650,000 855,302 186,673 27.9 %205,302 31.6 % Intergovernmental Service 17,304 0 0 (17,304) (100.0)%0 N/A % State Shared Revenues: Streamlined Sales Tax 1,924,487 1,907,700 1,908,971 (15,515) (0.8)%1,271 0.1 % Motor Vehicle Fuel Tax 1,121,112 1,221,400 1,153,061 31,949 2.8 %(68,339) (5.6)% Criminal Justice - High Crime 285,202 192,000 391,027 105,825 37.1 %199,027 103.7 % Criminal Justice - Population 20,807 24,000 21,787 979 4.7 %(2,213) (9.2)% Criminal Justice - Special Prog.75,865 80,000 79,077 3,212 4.2 %(923) (1.2)% Marijuana Revenues 29,420 34,000 56,069 26,648 90.6 %22,069 64.9 % State DUI 11,779 12,000 11,678 (100) (0.9)%(322) (2.7)% Fire Insurance Tax 76,569 75,000 78,078 1,509 2.0 %3,078 4.1 % Liquor Excise 352,467 360,000 371,440 18,973 5.4 %11,440 3.2 % Liquor Profit 650,766 651,000 650,607 (159) (0.0)%(393) (0.1)% Total State Shared:4,548,474 4,557,100 4,721,796 173,321 3.8 %164,696 3.6 % YE Total 5,737,079$ 6,129,110$ 6,104,610$ 367,530$ 6.4 %(24,500)$ (0.4)% Through December 2017 Intergovernmental Revenues (Grants, Entitlements & Services) 2017 vs. 2016 Actual 2017 vs. Budget % Change % Change $5.7 $4.8 $5.1 $5.3 $5.7 $6.1 $0 $1 $2 $3 $4 $5 $6 $7 $8 2012 2013 2014 2015 2016 2017MillionsIntergovernmental Revenues (Grants, Entitlements & Services) Actuals 15 Page 63 of 106 Quarterly Financial Report Through Q4-2017 16 Charges for Services consist of general governmental service charges, public safety charges, development service fees, and cultural & recreation fees. Overall, charges for services collected in 2017 totaled $4.2 million, which was $165,000 higher than revenues collected in 2016, and $21,000, or 0.5%, unfavorable to budget in 2017. General governmental charges for service collected in 2017 totaled $73,000 compared to a budget of $61,000. The favorability to budget was mostly seen in passport services. Public safety revenues consist of revenues generated for police officer extra duty security services – where officers are contracted for and reimbursement is made by the hiring contractor – as well as revenues generated for reimbursement from the Muckleshoot Indian Tribe (MIT) for a full-time dedicated police officer and associated expenditures. These revenues also include monies collected from the Auburn School District and the Criminal Justice Training Commission (CJTC) for services rendered. Public safety revenues collected in 2017 totaled $888,000 compared to a budget of $876,000. Revenues collected in 2017 were $249,000 or 39.0% higher than the revenues collected in 2016, predominately due to the reimbursement for services from the CJTC for a full time police officer who is on loan from the City, as well as increased revenues collected for extra duty security services due to a 27% increase in billable hours. 2016 2017 2017 Revenue YE Actual YE Budget YE Actual Amount Amount General Government 76,218$ 60,700$ 72,710$ $ (3,508)(4.6)% $ 12,010 19.8 % Public Safety 638,440 875,700 887,535 249,094 39.0 %11,835 1.4 % Development Services 1,046,249 1,007,600 906,687 (139,563) (13.3)%(100,913) (10.0)% Culture & Recreation 2,316,824 2,319,680 2,375,807 58,983 2.5 %56,127 2.4 % YE Total 4,077,733$ 4,263,680$ 4,242,738$ 165,005$ 4.0 % $ (20,942)(0.5)% Through December 2017 Charges for Services by Type 2017 vs. 2016 Actual 2017 vs. Budget Percentage Percentage $3.6 $3.3 $3.9 $4.3 $4.1 $4.2 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2012 2013 2014 2015 2016 2017MillionsCharges for Services Actuals 16 Page 64 of 106 Quarterly Financial Report Through Q4-2017 17 Development services fee collections, which primarily consist of plan check fees, totaled $907,000 and ended the year $101,000, or 10.0%, lower than budget expectations. Total plan check fees collected in 2017 totaled $664,000, compared to a budget of $800,000 and compares with $759,000 collected in 2016. Plan check revenues collected in 2017 were from numerous commercial and residential projects, including the Hudson Distribution Center, the Auburn School District, Boeing, the Tru by Hilton hotel, as well as numerous housing plans including Calla Crest and Hazelview. Of the $664,000 in plan check revenues collected in 2017, 55% was attributable to commercial projects in the City and the remaining 45% was predominately single family housing projects. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsDevelopment Service Fees 2017 Budget 2017 YE Actual 2016 Actual Revenue decreased in September 2017 due to a $49K refund for Plan Check fees that were originally paid in April 2017. $1.2 $1.1 $1.1 $1.4 $1.0 $0.9 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 2012 2013 2014 2015 2016 2017MillionsDevelopment Service Fees Actuals 17 Page 65 of 106 Quarterly Financial Report Through Q4-2017 18 Culture and recreation revenues collected in 2017 totaled $2.4 million, and exceeded budget by $56,000, or 2.4%. Collections in 2017 increased by $59,000, or 2.5%, compared to collections in 2016 primarily due to an increase in revenues collected for theater tickets sales and increased revenues collected for recreational classes. The majority of the culture and recreation revenues are derived from greens fees and pro shop sales at the Auburn Golf Course, recreational classes, athletic league fees, and special events. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $2.2 $2.4 $2.6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsCulture & Recreation 2017 Budget 2017 YE Actual 2016 Actual $2.0 $2.1 $2.2 $2.3 $2.3 $2.4 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 2012 2013 2014 2015 2016 2017MillionsCulture & Recreation Revenues Actuals 18 Page 66 of 106 Quarterly Financial Report Through Q4-2017 19 Fines & Penalties include traffic and parking infraction penalties, criminal fines (including criminal traffic, criminal non-traffic and other criminal offenses) as well as non-court fines such as false alarm fines. Total revenues collected in 2017 totaled $882,000, compared to a budget of $876,000. Revenues collected in 2017 were slightly lower than 2016 primarily due to reduced collections in civil infraction penalties, criminal non-traffic fines, and non-court fines and penalties. 2016 2017 2017 Month YE Actual YE Budget YE Actual Amount Amount Civil Penalties 23,763$ 12,000$ 28,346$ $ 4,583 19.3 % $ 16,346 136.2 % Civil Infraction Penalties 470,118 467,900 457,818 (12,300) (2.6)%(10,082) (2.2)% Redflex Photo Enforcement 15,433 0 10,773 (4,660) (30.2)%10,773 N/A % Parking Infractions 130,567 145,300 148,260 17,693 13.6 %2,960 2.0 % Criminal Traffic Misdemeanor 58,885 51,000 73,578 14,692 25.0 %22,578 44.3 % Criminal Non-Traffic Fines 47,125 43,500 31,077 (16,048) (34.1)%(12,423) (28.6)% Criminal Costs 60,366 42,000 46,394 (13,972) (23.1)%4,394 10.5 % Non-Court Fines & Penalties 99,662 114,400 86,009 (13,653) (13.7)%(28,391) (24.8)% YE Total 905,921$ 876,100$ 882,255$ $ (23,667)(2.6)% $ 6,155 0.7 % Through December 2017 Fines & Penalties by Type 2017 vs. 2016 Actual 2017 vs. Budget Percentage Percentage $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 $0.8 $0.9 $1.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFines & Penalties 2017 Budget 2017 YE Actual 2016 Actual 19 Page 67 of 106 Quarterly Financial Report Through Q4-2017 20 Miscellaneous revenues consist of investment earnings, income from facility rentals, contributions & donations, and other income including the quarterly purchasing card (P-card) rebate monies. Revenues collected in this category in 2017 totaled $1.5 million and exceeded budget by $421,000, or 40.1%, largely due to higher interest earnings and rents and leases. Interest and investments revenues collected in 2017 were $169,000 higher than budget expectations primarily due to the fact that the State Investment Pool interest rate was substantially higher in 2017 than 2016. Rents and leases revenues in 2017 exceeded budget expectations by $164,000 primarily due to higher than anticipated revenues from facilities rentals and parking space rentals. Facility rental revenue realized a $42,000 year-over-year increase due primarily to the opening of the new Community and Events Center in mid-2016, therefore only generating a half-year’s revenue in 2016 versus a full year in 2017. In 2017, additional inventory of parking spaces were added; therefore, parking permit revenues collected in 2017 were $22,000 higher than collections in 2016. Lastly, other miscellaneous revenues exceeded budget expectations by $76,000 predominately due to unbudgeted code violation revenues collected, which amounted to $57,000 in 2017. $1.6 $1.4 $1.2 $0.9 $0.9 $0.9 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 2012 2013 2014 2015 2016 2017MillionsFines & Penalties Actuals 2016 2017 2017 Month YE Actual YE Budget YE Actual Amount Amount Interest & Investments 110,800$ 69,000$ 237,532$ 126,732$ 114.4 %168,532$ 244.2 % Rents & Leases 783,930 715,300 879,059 95,129 12.1 %163,759 22.9 % Contributions & Donations 32,435 35,000 47,926 15,491 47.8 %12,926 36.9 % Other Miscellaneous Revenue 286,520 232,500 308,578 22,058 7.7 %76,078 32.7 % YE Total 1,213,685$ 1,051,800$ 1,473,095$ 259,410$ 21.4 %421,295$ 40.1 % Miscellaneous Revenues by Type Through December 2017 2017 vs. 2016 2017 vs. Budget Percentage Percentage 20 Page 68 of 106 Quarterly Financial Report Through Q4-2017 21 Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects Fund and is used for governmental capital projects. REET revenues collected in 2017 totaled $3.6 million and exceeded budget expectations by $744,000, or 26.5%. Real estate sales include the sale of both commercial properties and numerous single family residences. Commercial sales in 2017 included the sale of multiple hotels, two auto dealerships, several apartment complexes as well as several retail, industrial and warehouse properties. Real estate excise tax receipts were down for a second consecutive year from a high in 2015 that included the sale of several very large businesses including the Outlet Collection and the Lakeland Town Center. $0.8 $0.7 $1.0 $1.0 $1.2 $1.5 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 2012 2013 2014 2015 2016 2017MillionsMiscellaneous Revenues Actuals 2016 2017 2017 Month Actual Budget Actual Amount Amount Jan 339,594$ 192,600$ 224,044$ (115,550)$ (34.0)%31,444$ 16.3 % Feb 286,943 166,800 249,683 (37,261) (13.0)%82,883 49.7 % Mar 293,361 170,800 326,044 32,683 11.1 %155,244 90.9 % Apr 574,925 254,200 234,480 (340,445) (59.2)%(19,720) (7.8)% May 255,078 249,000 299,251 44,173 17.3 %50,251 20.2 % Jun 329,081 317,200 353,807 24,727 7.5 %36,607 11.5 % Jul 360,857 294,200 330,707 (30,150) (8.4)%36,507 12.4 % Aug 673,012 221,000 325,936 (347,076) (51.6)%104,936 47.5 % Sep 338,340 234,800 309,422 (28,918) (8.5)%74,622 31.8 % Oct 249,714 226,300 286,675 36,961 14.8 %60,375 26.7 % Nov 321,895 230,200 289,045 (32,850) (10.2)%58,845 25.6 % Dec 262,543 252,900 325,309 62,766 23.9 %72,409 28.6 % YE Total 4,285,344$ 2,810,000$ 3,554,404$ (730,940)$ (17.1)%744,404$ 26.5 % Real Estate Excise Tax Revenues December 2017 Percentage 2017 vs. 2016 2017 vs. Budget Percentage 21 Page 69 of 106 Quarterly Financial Report Through Q4-2017 22 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsReal Estate Excise Tax 2017 Budget 2017 YE Actual 2016 Actual $1.8 $2.2 $2.5 $4.6 $4.3 $3.6 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 2012 2013 2014 2015 2016 2017MillionsReal Estate Excise Tax Revenues Actuals 22 Page 70 of 106 Quarterly Financial Report Through Q4-2017 23 Pet Licensing In 2017, 4,378 pet licenses were sold, resulting in $114,265 in revenue. In 2016, 4,706 licenses were sold, resulting in $128,680 in revenue. 0 500 1,000 1,500 2,000 2,500 $0 $2 $4 $6 $8 $10 $12 $14 $16 JanFebMarAprMayJunJulAugSepOctNovDecNumber of Licenses IssuedLicense Revenue( thousands )Pet Licensing Revenues vs Licenses Sold 2017 vs 2016 2016 License Revenue 2017 License Revenue 2016 Licenses Issued 2017 Licenses Issued 0 1,000 2,000 3,000 4,000 5,000 6,000 $0 $20 $40 $60 $80 $100 $120 $140 JanFebMarAprMayJunJulAugSepOctNovDecNumber of Licenses IssuedLicense Revenue( thousands )Cumulative Pet Licensing Revenue & Licenses Issued 2017 vs 2016 2017 License Revenue 2017 Licenses Issued 2016 Licenses Issued 23 Page 71 of 106 Quarterly Financial Report Through Q4-2017 24 Street Funds This section provides a financial overview of the City’s three street funds for the year ending December 31, 2017. The City’s three street funds include the Arterial Street Fund (Fund 102), the Local Street Fund (Fund 103), and the Arterial Street Preservation Fund (Fund 105). Fund 102 – Arterial Street Fund The Arterial Street Fund is a special revenue fund that is funded by transportation grants, traffic impact fees, a portion of the City’s gas tax receipts, Public Works Trust Fund loans, developer contributions, and other sources. As of December 31, 2017 there were 28 separate street projects budgeted in this fund. During 2017, revenues collected totaled $8.4 million as compared with collections of $4.2 million in 2016. This variance is largely due to the timing of capital expenditures and their subsequent reimbursement via federal grants. Total expenditures in 2017 were $9.7 million and compare to $6.3 million spent in 2016. The increase from 2016 to 2017 is based on increased construction activity as budgeted multi-year projects move from the design phase to the construction phase, where most expenditures occur. Fund 102 - Arterial Street 2016 Summary of Sources and Uses Annual YE YE YE Report Period: December 2017 Budget Budget Actual Actual Amount Revenues Federal Grants 7,054,082$ 7,054,082$ 2,991,037$ 580,492$ (4,063,045)$ (57.6)% State Grants 2,995,210 2,995,210 2,339,312 1,193,710 (655,898) (21.9)% Motor Vehicle Fuel and Multimodal Taxes 583,000 583,000 590,141 580,220 7,141 1.2 % Developer Contributions 809,221 809,221 369,382 510,383 (439,839) (54.4)% Miscellaneous Revenue 466,191 466,191 - 64,862 (466,191) (100.0)% Other Governmental Agencies - - - - - Public Works Trust Fund Loans - - - - - Operating Transfer In 3,420,622 3,420,622 2,092,291 1,295,215 (1,328,331) (38.8)% Investment Income 2,600 2,600 11,173 6,484 8,573 329.7 % Total Revenues 15,330,926$ 15,330,926$ 8,393,335$ 4,231,365$ (6,937,591)$ (45.3)% Expenditures Salary and Benefits 285,000$ 285,000$ 618,410$ 490,836$ (333,410)$ (117.0)% Capital Outlay 15,658,112 15,658,112 8,452,526 5,302,678 7,205,586 46.0 % Subtotal - Capital Project Expenditures 15,943,112 15,943,112 9,070,936 5,793,514 6,872,176 43.1 % Services and Charges 285,000 285,000 329,980 224,507 (44,980) (15.8)% Interfund Payments for Services 76,681 76,681 76,680 74,556 1 0.0 % Debt Service Principal and Interest 209,511 209,511 209,511 210,205 0 0.0 % Operating Transfer Out 15,046 15,046 7,015 - 8,031 53.4 Total Expenditures 16,529,350$ 16,529,350$ 9,694,122$ 6,302,783$ 6,835,228$ 41.4 % Net Change in Fund Balance (1,198,424)$ (1,198,424)$ (1,300,786)$ (2,071,418)$ (102,362)$ 8.5 % Beg. Fund Balance, January 2017 2,655,913$ Net Change in Fund Balance, December 2017 (1,300,786) Ending Fund Balance, December 2017 1,355,127$ 2017 Budgeted Ending Fund Balance 1,457,489$ 2017 2017 YE Budget vs. Actual Favorable (Unfavorable) Percentage 24 Page 72 of 106 Quarterly Financial Report Through Q4-2017 25 This table presents the status of the projects with the most significant impacts on this fund: Notes: • W. Main St. Multimodal Corridor & ITS Improvements is complete. • S 277th Street Corridor Improvements is nearing completion but will continue into 2018. • AWS Corridor Safety Improvements is nearing completion but will continue into 2018. • Of the remaining projects in this fund: nine are in construction, two are partnership projects with other entities that were delayed until 2018 due to the construction schedule of the other agencies, and one is a grant-funded project that was delayed by Puget Sound Regional Council until 2019. These represent approximately $4.9M of the remaining projects. $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 102 -Capital Project Expenditures 2017 YE Budget 2017 YE Actual 2016 YE Actual 2017 YE Budget: $15.9M 2017 YE Budget: $5.8M 2017 YE Budget: $9.1M Name Annual Budget YE Actual Remaining W. Main St Multimodal Corridor & ITS Imp $1.6M $1.3M $0.2M S. 277th St Corridor Improvements $4.3M $3.9M $0.5M AWS Corridor Safety Imp. -- Muckleshoot Pl.$3.3M $2.6M $0.7M All Other Projects (25 Others Budgeted)$6.8M $1.3M $5.5M Total $15.9M $9.1M $6.9M *Components may not sum to total due to rounding. Fund 102 - Arterial Street Capital Projects Status * 25 Page 73 of 106 Quarterly Financial Report Through Q4-2017 26 Fund 103 – Local Street Fund The Local Street Fund is a special revenue fund where the revenues from sales taxes on construction are used for local street repair. During 2017 the revenues in this fund totaled $2.8 million, exceeding budget expectations by $905,000 due to higher than anticipated sales tax revenues from local construction projects. This also compares to collections of $2.5 million in 2016. Total expenditures in 2017 were $2.2 million and compare to expenditures of $2.1 million in 2016. Historically, well over half of this fund’s annual expenditures occur in the final four months of each year due to the weather sensitivity of pavement construction (this work needs to be done primarily in the summer and early fall). Highlighted in the table below and shown in the following graph are the fund’s total expenditures related to capital projects. Fund 103 - Local Street Fund 2016 Summary of Sources and Uses Annual YE YE YE Report Period: December 2017 Budget Budget Actual Actual Amount Revenues Sales Tax on Construction 1,750,000$ 1,750,000$ 2,632,107$ 2,292,280$ 882,107$ 50.4 % Operating Transfer In 150,000 150,000 150,000$ 150,000 - 0.0 % Interest Earnings 9,100 9,100 32,475$ 11,532 23,375 256.9 % Total Revenues 1,909,100$ 1,909,100$ 2,814,582$ 2,453,812$ 905,482$ 47.4 % Expenditures Salary and Benefits 148,568$ 148,568$ 124,325$ 122,298$ 24,243$ 16.3 % Capital Project Expenditures 2,933,969 2,933,969 2,050,006 1,974,528 883,963 30.1 % Services and Charges 25,680 25,680 23,703 708 1,977 7.7 % Interfund Payments for Services 11,925 11,925 11,916 12,240 9 0.1 % Operating Transfer Out 11,051 11,051 5,825 - 5,226 47.3 Total Expenditures 3,131,193$ 3,131,193$ 2,215,775$ 2,109,775$ 915,418$ 29.2 % Net Change in Fund Balance (1,222,093)$ (1,222,093)$ 598,807$ 344,037$ 1,820,900$ (149.0)% Beg. Fund Balance, January 2017 2,424,727$ Net Change in Fund Balance, December 2017 598,807 Ending Fund Balance, December 2017 3,023,534$ 2017 Budgeted Ending Fund Balance 1,202,634$ 2017 2017 YE Budget vs. Actual Favorable (Unfavorable) Percentage 26 Page 74 of 106 Quarterly Financial Report Through Q4-2017 27 This table presents the status of the projects with the most significant impacts on this fund: Notes: • 2016 Local Street Reconstruction Project received Final Acceptance by the City Council on April 17, 2017 and is complete. • 2017 Local Street Reconstruction Project was awarded for construction by the City Council on July 3, 2017 and is under construction but will continue into 2018 due to weather limitations. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 103 -Capital Project Expenditures 2017 YE Budget 2017 YE Actual 2016 YE Actual 2017 YE Budget: $2.9M 2016 YE Actual: $2.0M 2017 YE Actual: $2.1M Name Annual Budget YE Actual Remaining 2018 Local Street Pavement Reconstruction $0.1M $0.03M $0.07M 2017 Local St. Reconst. & Preservation $2.77M $1.95M $0.82M All Other Projects (1 Other Budgeted)$0.07M $0.07M $0.0M Total $2.9M $2.1M $0.9M *Components may not sum to total due to rounding. Fund 103 - Local Street Capital Projects Status* 27 Page 75 of 106 Quarterly Financial Report Through Q4-2017 28 Fund 105 – Arterial Street Preservation Fund The Arterial Street Preservation Fund is a special revenue fund which is primarily funded by a 1.0% utility tax that was adopted by Council in 2008; these utility tax revenues are restricted for arterial street repair and preservation projects. Major projects budgeted within the Arterial Street Preservation Fund in 2017 include 15th Street NE/NW Preservation, Auburn Way North Preservation, and the B Street NW Reconstruction project. During 2017, revenues totaled $3.9 million and compare to collections of $2.1 million in 2016. Total 2017 expenditures were $5.0 million, which compares to expenditures of $1.1 million in 2016. This increase is due to projects carried forward from the prior year that were under construction in 2017. Historically, the majority of this fund’s expenditures occur in the second half of each year due to the weather sensitivity of pavement construction (this work needs to be done primarily in the summer and early fall). Highlighted in the table below and shown in the following graph are the fund’s total expenditures related to capital projects. Fund 105 - Arterial Street Preservation 2016 Summary of Sources and Uses Annual YE YE YE Report Period: December 2017 Budget Budget Actual Actual Amount Revenues City Utility Tax 632,300$ 632,300$ 648,384$ 659,855$ 16,084$ 2.5 % Electric Utility Tax 712,000 712,000 738,991 705,071 26,991 3.8 % Natural Gas Utility Tax 200,200 200,200 214,550 189,392 14,350 7.2 % Cable TV Tax 194,300 194,300 211,438 197,497 17,138 8.8 % Telephone Utility Tax 290,400 290,400 275,990 298,871 (14,410) (5.0)% Garbage Utility Tax (External Haulers)19,400 19,400 21,639 20,668 2,239 11.5 % Grants 2,354,398 2,354,398 1,550,008 37,979 (804,390) (34.2)% Developer Mitigation Fees - - - - - Operating Transfer In 431,750 431,750 194,915 18,250 (236,835) (54.9)% Interest Earnings 4,900 4,900 25,483 9,858 20,583 420.1 % Total Revenues 4,839,648$ 4,839,648$ 3,881,397$ 2,137,442$ (958,251)$ (19.8)% Expenditures Salary and Benefits 368,000$ 368,000$ 391,456$ 286,880$ (23,456)$ (6.4)% Capital Outlay 7,071,019 7,071,019 4,617,054 508,281 2,453,965 34.7 % Subtotal - Capital Project Expenditures 7,439,019 7,439,019 5,008,510 795,161 2,430,509 32.7 % Supplies - - - - - Services and Charges - - - 62,500 - Operating Transfer Out 56,535 56,535 14,389 195,636 42,146 74.5 Total Expenditures 7,495,554$ 7,495,554$ 5,022,898$ 1,053,297$ 2,472,656$ 33.0 % Net Change in Fund Balance (2,655,906)$ (2,655,906)$ (1,141,501)$ 1,084,145$ 1,514,405$ (57.0)% Beg. Fund Balance, January 2017 3,269,631$ Net Change in Fund Balance, December 2017 (1,141,501) Ending Fund Balance, December 2017 2,128,130$ 2017 Budgeted Ending Fund Balance 613,725$ 2017 2017 YE Budget vs. Actual Favorable (Unfavorable) Percentage 28 Page 76 of 106 Quarterly Financial Report Through Q4-2017 29 This table presents the status of the projects with the most significant impacts on the fund: Notes: • Auburn Way North Preservation is complete. • B Street NW Reconstruction was awarded for construction by the City Council on June 19, 2017 and is nearing completion with minor work continuing into 2018. • 15th Street NE/NW Preservation project construction was delayed until 2018 due to the Puget Sound Regional Council’s (PSRC’s) modification of the Grant’s obligation year to FY 2018. This revision was part of a region wide effort to address federal grant funding restrictions for FY 2017, 2018, 2019 and 2020, and means that funds cannot be expended until 2018. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 105 -Capital Project Expenditures 2017 YE Budget 2017 YE Actual 2016 YE Actual 2017 YE Budget: $7.4M 2016 YE Actual: $0.8M 2017 YE Actual: $5.0M Name Annual Budget YE Actual Remaining 15th St NE/NW Preservation $1.5M $0.09M $1.5M Auburn Way North Preservation $1.7M $1.7M $.0M B Street NW Reconstruction $2.7M $1.9M $0.8M All Other Projects (4 Others Budgeted)$1.4M $1.3M $0.1M Total $7.4M $5.0M $2.4M *Components may not sum to total due to rounding. Capital Projects Status* Fund 105 - Arterial Street Preservation 29 Page 77 of 106 Quarterly Financial Report Through Q4-2017 30 Fund 124 – Mitigation Fees The Mitigation Fees Fund is a special revenue fund funded from revenues from new development, which are assessed at the time applications are received for development activity. These funds are used to mitigate costs associated with City growth. In 2017, revenues were above budget expectations, at 37.0% above the annual budgeted amount. Projects contributing substantially to these revenues include North Auburn Logistics and Holiday Inn Express. Expenditures were below budget due to the timing of capital projects funded by these revenues. Fund 124 - Mitigation Fees Summary of Sources and Uses Report Period Through:Ending Ending December 2017 Fund Balance Fund Balance Transportation Impact Fees 1,757,765$ 1,882,222$ 5,029,838$ 800,000$ 3,145,526$ 2,808,769$ Transportation Migitation Fees 67,877 101,307 230,848 - 148,946 115,331 Fire Impact Fees 181,528 400,000 81,339 170,000 400,000 69,811 Fire Mitigation Fees - - 81 - - 81 Parks Impact Fees 598,576 116,036 5,288,973 600,000 612,000 4,794,434 Parks Mitigation Fees - - 331,327 - - 331,327 School Impact Admin Fees 8,396 - 55,316 12,000 - 58,920 Wetland Mitigation Fees - - 68,835 - 31,570 37,265 Interest and Investment Income 112,605 - 112,605 8,200 - 8,200 Fees in Lieu of Improvements - - 122,525 - - 122,525 Operating Transfers - - - 400,000 - 400,000 Total 2,726,746$ 2,499,564$ 11,321,687$ 1,990,200$ 4,338,042$ 8,746,663$ Beginning Fund Balance, January 2017 11,094,505$ Net Change in Fund Balance, December 2017 227,182 Ending Fund Balance, December 2017 11,321,687$ 2017 Budgeted Ending Fund Balance 8,746,663$ YE Actuals BUDGET Revenues Expenditures Revenues Expenditures 30 Page 78 of 106 Quarterly Financial Report Through Q4-2017 31 Enterprise Funds Detailed income and expense statements for Enterprise and Internal Service funds can be found in the appendices at the end of this report. The appendices provide operating and, as applicable, capital fund reports for these funds showing budget, actuals, and variances. Operating funds house all the operating costs along with debt service and financing obligations. Capital funds show costs associated with capital acquisition and construction. Both the operating and capital funds have a working capital balance. This approach isolates those funds available for capital and cash flow needs for daily operations, and project managers will know exactly how much working capital is available for current and planned projects. In 2017, the Water Utility had operating income before depreciation of $5.7 million as compared with $4.7 million in 2016. Revenues ended the year slightly ahead of budget expectations. The increase in operating income is largely due to lower expenditures in 2017 compared to 2016, during which the City purchased regional water from the City of Tacoma while four of the City’s six major production wells were being rehabilitated. Regional water purchases in 2017 were minimal. Water sales by volume during 2017 totaled 3.2 million hundred cubic feet (ccf), compared to 3.6 million ccf in 2016, representing a 14.9% decrease due to lower water consumption. This is part of a general trend of decreased year-over-year water consumption per account due largely to conservation efforts and appliance efficiency improvements. Additionally, the City has not provided water to Water District #111 since its contract was renegotiated; last year, sales to Water District #111 represented 11.3% of total water sales by volume. The Sewer Utility finished 2017 with operating income before depreciation of $2.3 million as compared to operating income of $2.1 million in 2016 due primarily to higher service revenues in 2017. 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CCFThousandsWater Revenues vs Water Sold 2017 vs 2016 2016 Water Sales ($) 2017 Water Sales ($) 2016 Water Sold (ccf) 2017 Water Sold (ccf) 31 Page 79 of 106 Quarterly Financial Report Through Q4-2017 32 The Sewer-Metro Utility ended 2017 with operating income before depreciation of $421,000, as compared with $297,000 in 2016. Variances in this fund are largely due to King County’s internal billing process, by which King County bills the City a flat rate each quarter based on the number of customers and consumption volume averaged over prior quarters. Therefore, the Sewer-Metro Utility generally experiences a loss early in the year when revenues trend low, and income later in the year when revenues trend higher. This increase is due to higher revenues from service charges. The Stormwater Utility ended 2017 with operating income before depreciation of $2.6 million, compared with $2.7 million in 2016. Through December 2017, the Solid Waste Utility Fund had $15.1 million in operating revenues, compared to $14.5 million in operating expenditures, resulting in an increase in Working Capital of $0.6 million. The City of Auburn’s Solid Waste services are outsourced to Waste Management and to Republic Services, who manages the contract for the annexed areas. As of December 2017, Waste Management serviced 15,551 customers (80% of customers) and Republic Services serviced 4,009 customers (20% of customers). The current mix of customer account types is: • 89% Residential • 8% Commercial • 3% Multifamily The “diversion rate” is a measure of how much generated waste is not sent to the landfill; i.e., waste that is either recycled or collected yard waste. In 2017, the total diversion rate was 30%, which represents a total of 19,500 tons of waste that was diverted from landfills. 2017 Solid Waste Diversion Rates: Garbage - 10,200 tons (49%) Yard Waste - 5,900 tons (28%) Recycling - 4,800 tons (23%) 2017 Residential Waste Stream Garbage Yard Waste Recycling Garbage - 9,100 tons (79%) Yard Waste - 300 tons (3%) Recycling - 2,100 tons (18%) 2017 Multifamily Waste Stream Garbage Yard Waste Recycling Total: 11,500 tons Diversion Rate: 21% Total: 20,900 tons Diversion Rate: 51% 32 Page 80 of 106 Quarterly Financial Report Through Q4-2017 33 Of the total tonnage collected in 2017, 51% was collected from commercial customers, 32% was collected from residential customers, and 18% was collected from multifamily customers, as shown in the following graph. Garbage - 26,900 tons (81%) Yard Waste - 100 tons (0%) Recycling - 6,200 tons (19%) 2017 Commercial Waste Stream Garbage Yard Waste Recycling Total: 33,200 tons Diversion Rate: 19% Garbage - 46,100 tons (70%) Yard Waste - 6,400 tons (10%) Recycling - 13,100 tons (20%) 2017 Total Waste Stream Garbage Yard Waste Recycling Total: 65,600 tons Diversion Rate: 30% 5,168 4,618 5,740 5,406 6,673 6,083 5,359 5,322 5,237 5,293 5,480 5,203 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17Tonnage2017 Solid Waste Tonnage by Customer Type Residential Multifamily Commercial 33 Page 81 of 106 Quarterly Financial Report Through Q4-2017 34 Of the total tonnage collected in 2017, 70% was garbage, 20% was recyclables, and 10% was yard waste, as shown in the following graph. The Cemetery Fund ended 2017 with an operating income of $223,000 as compared with an operating income of $188,000 in 2016. This variance is mainly due to slightly increased sales revenue and slightly lower expenditures for supplies. 5,168 4,618 5,740 5,406 6,673 6,083 5,359 5,322 5,237 5,293 5,480 5,203 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17Tonnage2017 Solid Waste Tonnage by Waste Stream Garbage Recycling Yard Waste $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsCEMETERY 2017 YE Budgeted Revenue 2017 YE Actual Revenue 2016 YE Actual Revenue 2017 YE Actual Expenses Cumulative Revenues & Expenditures 2017 Budget vs. Actual 34 Page 82 of 106 Quarterly Financial Report Through Q4-2017 35 Internal Service Funds No significant variances are reported in the Insurance, Worker’s Compensation, Facilities, Innovation & Technology, or Equipment Rental funds. Contact Information This report is prepared by the Finance Department. Additional financial information can also be viewed at our website: http://www.auburnwa.gov/. For any questions about this report please contact Shelley Coleman at scoleman@auburnwa.gov. 35 Page 83 of 106 Investment Purchase Purchase Maturity Yield to Type Date Price Date Maturity State Investment Pool Various 116,427,623$ Various 1.28% KeyBank Money Market Various 6,332,600 Various 0.02% OpusBank Public Interest Acct Various 10,020,030 Various 1.36% FNMA 3/11/2016 998,844 2/22/2019 1.20% Total Cash & Investments 133,779,097$ 1.223% Investment Mix % of Total State Investment Pool 87.0%Current 6-month treasury rate 1.50% KeyBank Money Market 4.7%Current State Pool rate 1.28% OpusBank Public Interest Acct 7.5%KeyBank Money Market 0.02% FNMA 0.7%OpusBank Public Interest Acct 1.36% 100.0%Blended Auburn rate 1.22% City of Auburn Investment Portfolio Summary December 31, 2017 Summary 36 Page 84 of 106 SALES TAX SUMMARY DECEMBER 2017 SALES TAX DISTRIBUTIONS (FOR OCTOBER 2017 RETAIL ACTIVITY) 2016 Annual Total 2016 YE 2017 YE YE 2016 Annual Total 2016 YE 2017 YE YE NAICS CONSTRUCTION (Nov '15-Oct '16)(Nov '15-Oct '16)(Nov '16-Oct '17)% Diff NAICS AUTOMOTIVE (Nov '15-Oct '16)(Nov '15-Oct '16)(Nov '16-Oct '17)% Diff 236 Construction of Buildings 1,139,466 1,139,466 1,503,231 31.9%441 Motor Vehicle and Parts Dealer 3,409,019 3,409,019 3,703,385 e 8.6% 237 Heavy and Civil Construction 309,344 309,344 209,928 -32.1%447 Gasoline Stations 250,478 250,478 268,146 7.1% 238 Specialty Trade Contractors 843,470 843,470 918,947 8.9%TOTAL AUTOMOTIVE 3,659,497$ 3,659,497$ 3,971,531$ 8.5% TOTAL CONSTRUCTION 2,292,280$ 2,292,280$ 2,632,107$ 14.8%Overall Change from Previous Year 312,034$ Overall Change from Previous Year 339,827$ 2016 Annual Total 2016 YE 2017 YE YE 2016 Annual Total 2016 YE 2017 YE YE NAICS RETAIL TRADE (Nov '15-Oct '16)(Nov '15-Oct '16)(Nov '16-Oct '17)% Diff NAICS MANUFACTURING (Nov '15-Oct '16)(Nov '15-Oct '16)(Nov '16-Oct '17)% Diff 442 Furniture and Home Furnishings 185,234 185,234 c 197,226 6.5% 311 Food Manufacturing 3,278 3,278 4,642 41.6%443 Electronics and Appliances 220,553 220,553 211,036 -4.3% 312 Beverage and Tobacco Products 9,601 9,601 7,842 -18.3%444 Building Material and Garden 579,076 579,076 580,347 0.2% 313 Textile Mills 415 415 264 -36.5%445 Food and Beverage Stores 397,177 397,177 a 368,971 -7.1% 314 Textile Product Mills 3,554 3,554 1,501 -57.8%446 Health and Personal Care Store 284,191 284,191 368,699 29.7% 315 Apparel Manufacturing 155 155 227 46.6%448 Clothing and Accessories 1,136,431 1,136,431 1,118,980 d -1.5% 316 Leather and Allied Products 38 38 46 20.6%451 Sporting Goods, Hobby, Books 237,555 237,555 199,717 -15.9% 321 Wood Product Manufacturing 58,391 58,391 16,528 -71.7%452 General Merchandise Stores 1,017,905 1,017,905 992,858 -2.5% 322 Paper Manufacturing 8,047 8,047 15,254 89.6%453 Miscellaneous Store Retailers 473,398 473,398 463,719 -2.0% 323 Printing and Related Support 52,610 52,610 54,391 3.4%454 Nonstore Retailers 321,071 321,071 370,027 15.2% 324 Petroleum and Coal Products 2,145 2,145 1,040 -51.5%TOTAL RETAIL TRADE 4,852,592$ 4,852,592$ 4,871,580$ 0.4% 325 Chemical Manufacturing 10,183 10,183 15,982 56.9%Overall Change from Previous Year 18,988$ 326 Plastics and Rubber Products 8,168 8,168 8,856 8.4% 327 Nonmetallic Mineral Products 17,429 17,429 17,749 1.8% 331 Primary Metal Manufacturing 442 442 818 85.1%2016 Annual Total 2016 YE 2017 YE YE 332 Fabricated Metal Product Manuf 29,409 29,409 28,618 -2.7%NAICS SERVICES (Nov '15-Oct '16)(Nov '15-Oct '16)(Nov '16-Oct '17)% Diff 333 Machinery Manufacturing 16,461 16,461 18,216 10.7%51*Information 630,158 630,158 662,460 5.1% 334 Computer and Electronic Product 10,780 10,780 32,957 205.7%52*Finance and Insurance 110,728 110,728 122,200 10.4% 335 Electric Equipment, Appliances 445 445 1,103 147.9%53*Real Estate, Rental, Leasing 358,628 358,628 367,828 2.6% 336 Transportation Equipment Man 471,441 471,441 385,842 -18.2%541 Professional, Scientific, Tech 237,656 237,656 238,617 0.4% 337 Furniture and Related Products 18,661 18,661 34,157 83.0%551 Company Management 330 330 13 -96.1% 339 Miscellaneous Manufacturing 39,437 39,437 31,567 -20.0%56*Admin. Supp., Remed Svcs 328,453 328,453 276,380 -15.9% TOTAL MANUFACTURING 761,091$ 761,091$ 677,596$ -11.0%611 Educational Services 50,026 50,026 55,506 11.0% Overall Change from Previous Year (83,495)$ 62*Health Care Social Assistance 91,643 91,643 74,678 -18.5% 71*Arts and Entertainment 156,301 156,301 109,577 -29.9% 72*Accommodation and Food Svcs 1,217,734 1,217,734 1,276,310 4.8% 2016 Annual Total 2016 YE 2017 YE YE 81*Other Services 646,579 646,579 546,059 -15.5% NAICS TRANSPORTATION AND WAREHOUSING (Nov '15-Oct '16)(Nov '15-Oct '16)(Nov '16-Oct '17)% Diff 92*Public Administration 141,806 141,806 182,112 28.4% 481 Air Transportation 1 1 2 61.8%TOTAL SERVICES 3,970,042$ 3,970,042$ 3,911,740$ -1.5% 482 Rail Transportation 24,331 24,331 20,972 -13.8%Overall Change from Previous Year (58,302)$ 484 Truck Transportation 7,067 7,067 4,014 -43.2% 485 Transit and Ground Passengers 114 114 -3,390 -3076.1% 488 Transportation Support 52,828 52,828 51,246 -3.0%2016 Annual Total 2016 YE 2017 YE YE 491 Postal Service 274 274 274 0.0%NAICS MISCELLANEOUS (Nov '15-Oct '16)(Nov '15-Oct '16)(Nov '16-Oct '17)% Diff 492 Couriers and Messengers 301 301 1,859 518.5%000 Unknown 0 0 0 N/A 493 Warehousing and Storage 14,523 14,523 13,526 -6.9%111-115 Agriculture, Forestry, Fishing 5,534 5,534 6,486 17.2% TOTAL TRANSPORTATION 99,439$ 99,439$ 88,502$ -11.0%211-221 Mining & Utilities 29,410 29,410 26,023 -11.5% Overall Change from Previous Year (10,937)$ 999 Unclassifiable Establishments 32,161 32,161 b 32,865 2.2% TOTAL SERVICES 67,105$ 67,105$ 65,374$ -2.6% Overall Change from Previous Year (1,731)$ 2016 Annual Total 2016 YE 2017 YE YE NAICS WHOLESALE TRADE (Nov '15-Oct '16)(Nov '15-Oct '16)(Nov '16-Oct '17)% Diff 423 Wholesale Trade, Durable Goods 981,820 981,820 1,080,558 10.1%GRAND TOTAL 16,967,023$ 16,967,023$ 17,581,514$ 424 Wholesale Trade, Nondurable 281,166 281,166 278,097 -1.1%Overall Change from Previous Year 614,491$ 3.6% 425 Wholesale Electronic Markets 1,991 1,991 4,428 122.4% TOTAL WHOLESALE 1,264,976$ 1,264,976$ 1,363,083$ 7.8%Total December 2017 Sales Tax Distributions 1,428,780$ Overall Change from Previous Year 98,107$ Dollar Increase from December 2016 76,553$ Percent Increase from December 2016 Includes Adjustments in excess of +/- $10,000.Comparisons: a. WA State Dept of Revenue audit adjustment to sales tax returns for period of November 2015 (adjustment: $10,572).December 2016 16,967,023 15,614,796 1,352,227$ b. WA State Dept of Revenue audit adjustment to sales tax returns for period of April 2016 (adjustment: - $52,898).December 2015 16,865,540 15,488,142 1,377,398$ c. WA State Dept of Revenue audit adjustment to sales tax returns for period of May 2016 (adjustment: - $16,496). d. WA State Dept of Revenue audit adjustment to sales tax returns for period of April 2017 (adjustment: - $29,746). e. WA State Dept of Revenue audit adjustment to sales tax returns for period of October 2017 (adjustment: $36,668). 02/07/18 Prepared by Auburn Finance Department 5.7% 37 Page 85 of 106 3/6/2018 3:33 PM Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance OPERATING FUND:460 460 461 461 462 462 OPERATING REVENUES Charges For Service 14,730,511 14,781,300 50,789 8,102,441 8,667,587 565,146 17,237,490 17,703,367 465,877 9,242,676 9,766,428 523,752 Grants - - - - - - Interest Earnings 10,000 82,223 72,223 20,000 33,522 13,522 1,000 10,721 9,721 15,000 26,219 11,219 Rents, Leases, Concessions, & Other 212,939 246,896 33,957 72,849 73,739 890 - - - 60,951 78,397 17,446 TOTAL OPERATING REVENUES 14,953,450 15,110,419 156,969 8,195,290 8,774,849 579,559 17,238,490 17,714,088 475,598 9,318,627 9,871,044 552,417 OPERATING EXPENSES Salaries & Wages 2,688,501 2,622,309 66,192 1,742,176 1,713,165 29,011 - - - 2,500,996 2,549,112 (48,116) Benefits 1,314,301 1,232,638 81,663 842,110 799,993 42,117 - - - 1,233,452 1,208,249 25,203 Supplies 334,444 289,182 45,262 116,750 80,398 36,352 - - - 94,750 59,412 35,338 Other Service Charges 5,096,580 2,986,248 2,110,332 2,951,890 2,584,553 367,337 - 147 (147) 1,778,290 1,547,734 230,556 Intergovernmental Services (Less Transfers Out)9,500 3,663 5,837 83,000 62,848 20,152 Waste Management Payments Sewer Metro Services 17,359,700 17,292,837 66,863 Debt Service Interest 1,345,282 856,805 488,477 276,483 276,483 0 - - - 361,418 361,417 1 Interfund Loan Repayment - - - Net Change Restricted Assets Interfund Operating Rentals & Supplies 1,422,716 1,422,819 (103) 1,039,865 1,041,678 (1,813) - - - 1,441,066 1,442,839 (1,773) TOTAL OPERATING EXPENSES 12,201,824 9,410,000 2,791,824 6,978,774 6,499,935 478,839 17,359,700 17,292,983 66,717 7,492,972 7,231,612 261,360 OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION 2,751,626 5,700,419 2,948,793 1,216,516 2,274,914 1,058,398 (121,210) 421,105 542,315 1,825,655 2,639,432 813,777 NON-OPERATING REVENUES Operating Transfers-in NON-OPERATING EXPENSES Transfer to Capital Subfund 2,500,000 2,500,000 - 1,000,000 800,000 200,000 1,400,000 300,000 1,100,000 Other Operating Transfers-out 336,966 143,862 193,104 399,632 112,839 286,793 506,112 216,047 290,065 Debt Service Principal 1,799,827 1,468,080 331,747 541,127 541,127 0 413,162 413,162 - Net Change in Restricted Net Assets - 5,691,021 5,691,021 - 518,591 518,591 - 1,586,244 1,586,244 Interfund Loan Repayment BEGINNING WORKING CAPITAL - January 1, 2017 7,977,666 7,977,666 - 2,810,410 2,810,410 - 2,672,022 2,672,022 - 2,005,792 2,005,792 - ENDING WORKING CAPITAL - December 31, 2017 6,092,499 3,875,122 (2,217,377) 2,086,167 3,112,766 1,026,599 2,550,812 3,093,127 542,315 1,512,173 2,129,770 617,598 NET CHANGE IN WORKING CAPITAL (see Note)(1,885,167) (4,102,544) (2,217,377) (724,243) 302,356 1,026,599 (121,210) 421,105 542,315 (493,619) 123,979 617,598 CAPITAL FUND: CAPITAL REVENUES Interest Revenue - 22,342 22,342 - 120,323 120,323 - 125,514 125,514 Grants 175,000 5,400 (169,600) - - - Contributions - - - - - - - Other Non-Operating Revenue - 4,072,557 4,072,557 - - - - 800,501 800,501 Gain (Loss) On Sale Of Fixed Assets - - - - - - - - - Increase In Contributions - System Development 1,000,000 597,556 (402,444) 500,000 458,574 (41,426) 500,000 817,846 317,846 Interfund Revenues - - - - - - - - - Increase In Contributions - FAA - - - - - - - - - Proceeds of Debt Activity 5,402,159 70,798 (5,331,361) - - - - - - Transfers In from Operating Sub-Fund 2,500,000 2,500,000 - 1,000,000 800,000 (200,000) 1,400,000 300,000 (1,100,000) Transfer In from Other Funds 200,000 - (200,000) - - - - - Other Sources - - - - 22,500 22,500 - - - TOTAL CAPITAL REVENUES 9,277,159 7,268,652 (2,008,507) 1,500,000 1,401,397 (98,603) 1,900,000 2,043,861 143,861 CAPITAL EXPENSES Other Non-Operating Expense - - - - - - - - - Increase In Fixed Assets - Salaries 382,143 167,840 214,303 86,429 50,500 35,929 152,143 164,788 (12,645) Increase In Fixed Assets - Benefits 152,857 76,798 76,059 34,571 23,739 10,832 60,857 74,002 (13,145) Increase In Fixed Assets - Services - 8,357 (8,357) - 8,005 (8,005) - 13,918 (13,918) Increase In Fixed Assets - Site Improvements - 54,768 (54,768) - - - - - Increase In Fixed Assets - Equipment 20,000 19,955 45 40,000 19,955 20,045 20,000 19,955 45 Increase In Fixed Assets - Construction 10,524,977 7,136,458 3,388,519 2,647,218 1,478,761 1,168,457 4,229,504 1,767,092 2,462,412 Operating Transfers Out 50,000 50,000 - 50,000 50,000 - 156,000 156,000 - TOTAL CAPITAL EXPENSES 11,129,977 7,514,177 3,615,800 2,858,218 1,630,960 1,227,258 4,618,504 2,195,757 2,422,747 BEGINNING WORKING CAPITAL - January 1, 2017 1,936,373 1,936,373 - 12,710,295 12,710,295 - 13,379,700 13,379,700 - 83,555 1,690,848 1,607,293 11,352,077 12,480,733 1,128,655 10,661,196 13,227,804 2,566,608 NET CHANGE IN WORKING CAPITAL (see Note)(1,852,818) (245,525) 1,607,293 (1,358,218) (229,563) 1,128,655 (2,718,504) (151,896) 2,566,608 Total Change in Working Capital (3,737,985) (4,348,069) (610,084) (2,082,461) 72,793 2,155,254 (121,210) 421,105 542,315 (3,212,123) (27,917) 3,184,206 (*) Depreciation 3,140,000 3,269,581 2,315,000 2,199,711 - - 2,080,000 1,885,931 OPERATING & CAPITAL FUNDS WATER ENTERPRISE FUNDS SEWER SEWER METRO STORMCash Basis through December 2017 (*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures; payments will be made as scheduled in December 2017. Working Capital = Current Assets minus Current Liabilities ENDING WORKING CAPITAL - December 31, 2017 38 Page 86 of 106 3/6/2018 3:33 PM OPERATING FUND: OPERATING REVENUES Charges For Service Grants Interest Earnings Rents, Leases, Concessions, & Other TOTAL OPERATING REVENUES OPERATING EXPENSES Salaries & Wages Benefits Supplies Other Service Charges Intergovernmental Services (Less Transfers Out) Waste Management Payments Sewer Metro Services Debt Service Interest Interfund Loan Repayment Net Change Restricted Assets Interfund Operating Rentals & Supplies TOTAL OPERATING EXPENSES OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION NON-OPERATING REVENUES Operating Transfers-in NON-OPERATING EXPENSES Transfer to Capital Subfund Other Operating Transfers-out Debt Service Principal Net Change in Restricted Net Assets Interfund Loan Repayment BEGINNING WORKING CAPITAL - January 1, 2017 ENDING WORKING CAPITAL - December 31, 2017 NET CHANGE IN WORKING CAPITAL (see Note) CAPITAL FUND: CAPITAL REVENUES Interest Revenue Grants Contributions Other Non-Operating Revenue Gain (Loss) On Sale Of Fixed Assets Increase In Contributions - System Development Interfund Revenues Increase In Contributions - FAA Proceeds of Debt Activity Transfers In from Operating Sub-Fund Transfer In from Other Funds Other Sources TOTAL CAPITAL REVENUES CAPITAL EXPENSES Other Non-Operating Expense Increase In Fixed Assets - Salaries Increase In Fixed Assets - Benefits Increase In Fixed Assets - Services Increase In Fixed Assets - Site Improvements Increase In Fixed Assets - Equipment Increase In Fixed Assets - Construction Operating Transfers Out TOTAL CAPITAL EXPENSES BEGINNING WORKING CAPITAL - January 1, 2017 NET CHANGE IN WORKING CAPITAL (see Note) Total Change in Working Capital (*) Depreciation OPERATING & CAPITAL FUNDS Cash Basis through December 2017 Working Capital = Current Assets minus Current Liabilities ENDING WORKING CAPITAL - December 31, 2017 Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance 464 464 465 465 466 466 - 15,316,200 15,067,667 (248,533) 826,800 874,790 47,990 927,500 1,336,570 409,070 - - - 87,300 25,120 (62,180) - - - - - 9,000 41,712 32,712 2,500 6,451 3,951 800 4,323 3,523 1,500 11,646 10,146 - 441 441 3,000 9,932 6,932 - - - 15,412,500 15,134,940 (277,560) 832,300 891,173 58,873 928,300 1,340,894 412,594 1,500 11,646 10,146 325,910 326,131 (221) - - - 475,628 470,184 5,444 - - - 147,414 146,021 1,393 - - - 258,734 250,268 8,466 225,750 54,502 171,248 27,542 5,520 22,022 2,500 435 2,066 221,700 209,208 12,492 - - - 1,645,565 1,519,615 125,950 484,950 482,003 2,947 156,750 140,684 16,066 4,230 (1,956) 6,186 363,600 366,065 (2,465) - - - - - - - - - 12,475,500 12,048,375 427,125 - - - 24,357 9,841 14,516 (0) - (0) - - - - - - - - 111,587 111,588 (1) 1,400 1,404 (4) 47,833 47,832 1 - - - 15,097,118 14,523,314 573,804 513,207 493,682 19,525 1,160,645 1,118,176 42,469 229,980 52,546 177,434 315,382 611,626 296,244 319,093 397,490 78,397 (232,345) 222,717 455,062 (228,480) (40,899) 187,581 200,000 - (200,000) 670,715 670,715 - - - - - - - 1,332 397 935 165,000 171,023 (6,023) - - - - (169,681) (169,681) - - - 39,942 39,900 42 4,411,853 4,411,853 - 236,649 236,649 - 293,829 293,829 - 1,385,685 1,385,685 - 4,727,235 5,023,479 296,244 350,800 592,898 242,098 260,152 516,149 255,997 1,827,920 2,015,500 187,581 315,382 611,626 296,244 114,151 356,249 242,098 (33,677) 222,320 255,997 442,235 629,816 187,581 - 3,378 3,378 - 2,404 2,404 17,167 529 (16,638) - - - - - - - - - - - - - - - - - - - - - - - - - - - 310,900 5,642 (305,258) - - - - - - - - - - - - - - - 275,000 274,937 (63) - - - - - - 603,067 284,486 (318,581) - 2,404 2,404 - - - - - - 21,429 14 21,415 - - - 8,571 7 8,564 - - - - 46 (46) - - - - - - - - - 729,034 348,776 380,258 - - - - - - - - - 759,034 348,843 410,191 - - - 360,602 360,602 - 256,633 256,633 - 204,635 296,245 91,610 256,633 259,037 2,404 (155,967) (64,357) 91,610 - 2,404 2,404 315,382 611,626 (41,816) 291,892 333,708 (33,677) 224,724 258,401 442,235 629,816 187,581 19,000 18,819 468,000 462,843 50,500 47,383 - - Note: Working capital balance only includes eleven Waste Management payments due to the timing of December's payment ($2,126,572), which will be made in December. INSURANCE (*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures; payments will be made as scheduled in December 2017. ENTERPRISE FUNDS SOLID WASTE AIRPORT CEMETERY INTERNAL SERVICE FUNDS see Note 39 Page 87 of 106 3/6/2018 3:33 PM OPERATING FUND: OPERATING REVENUES Charges For Service Grants Interest Earnings Rents, Leases, Concessions, & Other TOTAL OPERATING REVENUES OPERATING EXPENSES Salaries & Wages Benefits Supplies Other Service Charges Intergovernmental Services (Less Transfers Out) Waste Management Payments Sewer Metro Services Debt Service Interest Interfund Loan Repayment Net Change Restricted Assets Interfund Operating Rentals & Supplies TOTAL OPERATING EXPENSES OPERATING REVENUES LESS EXPENSES BEFORE DEPRECIATION NON-OPERATING REVENUES Operating Transfers-in NON-OPERATING EXPENSES Transfer to Capital Subfund Other Operating Transfers-out Debt Service Principal Net Change in Restricted Net Assets Interfund Loan Repayment BEGINNING WORKING CAPITAL - January 1, 2017 ENDING WORKING CAPITAL - December 31, 2017 NET CHANGE IN WORKING CAPITAL (see Note) CAPITAL FUND: CAPITAL REVENUES Interest Revenue Grants Contributions Other Non-Operating Revenue Gain (Loss) On Sale Of Fixed Assets Increase In Contributions - System Development Interfund Revenues Increase In Contributions - FAA Proceeds of Debt Activity Transfers In from Operating Sub-Fund Transfer In from Other Funds Other Sources TOTAL CAPITAL REVENUES CAPITAL EXPENSES Other Non-Operating Expense Increase In Fixed Assets - Salaries Increase In Fixed Assets - Benefits Increase In Fixed Assets - Services Increase In Fixed Assets - Site Improvements Increase In Fixed Assets - Equipment Increase In Fixed Assets - Construction Operating Transfers Out TOTAL CAPITAL EXPENSES BEGINNING WORKING CAPITAL - January 1, 2017 NET CHANGE IN WORKING CAPITAL (see Note) Total Change in Working Capital (*) Depreciation OPERATING & CAPITAL FUNDS Cash Basis through December 2017 Working Capital = Current Assets minus Current Liabilities ENDING WORKING CAPITAL - December 31, 2017 Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance Budget YE Actual Variance - - 568 568 560 560 961,300 935,127 (26,173) 3,453,700 3,485,034 31,334 6,038,376 6,065,744 27,368 2,263,102 2,281,867 18,765 - - - - - - 2,600 13,175 10,575 8,800 19,817 11,017 5,000 14,170 9,170 - 27,787 27,787 93,000 6,522 (86,478) - 57,928 57,928 - - - - 100,621 100,621 1,056,900 954,823 (102,077) 3,462,500 3,562,779 100,279 6,043,376 6,079,914 36,538 2,263,102 2,410,275 147,173 76,324 73,291 3,033 655,000 624,384 30,616 1,822,981 1,817,194 5,787 681,943 581,087 100,856 362,638 122,180 240,458 358,001 338,027 19,974 817,418 780,508 36,910 349,650 295,408 54,242 - - - 150,220 132,230 17,990 508,250 506,972 1,278 1,074,000 752,592 321,408 494,915 231,601 263,314 1,818,387 1,484,323 334,064 2,882,325 2,324,104 558,221 427,580 417,524 10,056 - - - - - - - - - - - - - - - - - - - - - 3,843 3,581 262 - - - - - - - 140,784 140,784 - 191,031 191,016 15 231,152 231,447 (295) 933,877 427,071 506,806 3,122,392 2,719,748 402,644 6,222,005 5,619,794 602,211 2,768,168 2,281,638 486,530 123,023 527,752 404,729 340,108 843,031 502,923 (178,629) 460,120 638,749 (505,066) 128,637 633,703 662,611 279,724 (382,887) 100,000 100,000 - 961,452 888,503 72,949 400 400 - - - - - - - - - - - (173,155) (173,155) 1,097,368 1,097,368 - 1,853,016 1,853,016 - 1,064,713 1,064,713 - 2,749,240 2,749,240 - 1,220,391 1,625,120 404,729 1,231,672 1,807,545 575,873 1,548,295 1,804,157 255,862 2,344,174 3,151,032 806,858 123,023 527,752 404,729 (621,344) (45,471) 575,873 483,582 739,444 255,862 (405,066) 401,792 806,858 - 18,996 18,996 - 30,156 30,156 - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,703,631 1,703,628 (3) - - - - - - - - - - - - - - - - - - 96,537 88,570 (7,967) 1,010,927 372,032 (638,895) - - - - - - 96,537 107,566 11,029 2,714,558 2,105,816 (608,742) - - - - - - - 1,983 (1,983) - - - - 728 (728) - - - - 263 (263) - 413 (413) - - 779,437 469,273 310,164 1,961,665 1,662,097 299,568 163,000 61,710 101,290 710,000 9,900 700,100 55,900 55,900 - - - - 998,337 589,857 408,480 2,671,665 1,672,410 999,255 2,319,577 2,319,577 - 3,020,402 3,020,402 - 1,417,777 1,837,285 419,509 3,063,295 3,453,808 390,513 (901,800) (482,291) 419,509 42,893 433,406 390,513 123,023 527,752 404,729 (621,344) (45,471) 575,873 (418,218) 257,153 675,371 (362,173) 835,198 1,197,371 - - - - 701,000 680,431 985,000 1,182,134 INTERNAL SERVICE FUNDS WORKER'S COMPENSATION FACILITIES INNOVATION & TECHNOLOGY EQUIPMENT RENTAL 40 Page 88 of 106 INNOVATION EQUIPMENT & TECHNOLOGY RENTAL OPERATING REVENUES Charges For Services 14,781,300$ 8,667,587$ -$ 9,766,428$ 15,067,667$ 70,750$ 1,336,570$ -$ -$ -$ -$ -$ Interfund Charges For Services - - - - - - - - 941,648 3,374,196 5,973,720 3,985,495 Sewer Metro Services Revenue - - 17,703,367 - - - - - - - - - Rents, Leases, Concessions & Other - - - - - 804,040 - - - 110,838 92,023 - TOTAL OPERATING REVENUES 14,781,300$ 8,667,587$ 17,703,367$ 9,766,428$ 15,067,667$ 874,790$ 1,336,570$ -$ 941,648$ 3,485,034$ 6,065,744$ 3,985,495$ OPERATING EXPENSES Administration & Other 4,803,489$ 4,535,047$ 147$ 3,517,353$ 1,773,467$ 71,307$ 329,242$ 52,546$ -$ -$ 263$ 839,667$ Operations & Maintenance 3,750,012 1,696,409 17,292,837 3,366,760 12,749,847 412,580 788,934 - 427,071 2,719,748 5,619,794 1,438,804 Depreciation & Amortization 3,269,581 2,199,711 - 1,885,931 18,819 462,843 47,383 - - - 680,431 1,182,134 TOTAL OPERATING EXPENSES 11,823,082$ 8,431,167$ 17,292,983$ 8,770,044$ 14,542,133$ 946,731$ 1,165,559$ 52,546$ 427,071$ 2,719,748$ 6,300,488$ 3,460,605$ OPERATING INCOME (LOSS)2,958,219$ 236,420$ 410,384$ 996,384$ 525,533$ (71,941)$ 171,012$ (52,546)$ 514,577$ 765,286$ (234,745)$ 524,890$ NON-OPERATING REVENUES & EXPENSES Interest Revenue 104,565$ 153,845$ 10,721$ 151,733$ 41,712$ 9,829$ 6,727$ 11,646$ 13,175$ 19,817$ 33,166$ 57,943$ Other Non-Operating Revenue 252,296 73,739 - 78,397 25,561 16,102 - - - 57,928 - 84,109 Gain (Loss) On Sale Of Fixed Assets - - - - - - - - - - - 16,512 Other Non-Operating Expense*(856,805) (276,483) - (361,417) - (9,841) - - - - - (3,581) TOTAL NON-OPERATING REVENUES & EXPENSES (499,945)$ (48,899)$ 10,721$ (131,287)$ 67,274$ 16,090$ 6,727$ 11,646$ 13,175$ 77,745$ 33,166$ 154,984$ 2,458,274$ 187,521$ 421,105$ 865,097$ 592,807$ (55,851)$ 177,739$ (40,899)$ 527,752$ 843,031$ (201,579)$ 679,874$ Contributions 597,556$ 458,574$ -$ 817,846$ -$ -$ -$ -$ -$ -$ -$ -$ Transfers In 2,500,000 800,000 - 300,000 - 274,937 - 670,715 - - 368,294 472,032 Transfers Out (2,693,862) (962,839) - (672,047) - - (397) - - (888,503) (56,300) - TOTAL CONTRIBUTIONS & TRANSFERS 403,694$ 295,735$ -$ 445,799$ -$ 274,937$ (397)$ 670,715$ -$ (888,503)$ 311,994$ 472,032$ CHANGE IN FUND BALANCE 2,861,967$ 483,256$ 421,105$ 1,310,896$ 592,807$ 219,087$ 177,342$ 629,816$ 527,752$ (45,471)$ 110,415$ 1,151,906$ BEGINNING FUND BALANCE - January 1, 2017 75,751,705$ 81,919,221$ 2,672,022$ 64,010,652$ 4,245,695$ 9,514,116$ 1,374,410$ 1,385,685$ 1,064,528$ 1,530,324$ 4,291,351$ 10,920,413$ ENDING FUND BALANCE - December 31, 2017 78,613,672$ 82,402,477$ 3,093,127$ 65,321,548$ 4,838,503$ 9,733,202$ 1,551,752$ 2,015,500$ 1,592,280$ 1,484,853$ 4,401,766$ 12,072,319$ *Note: This report includes actuals through December 2017, with the exception of Water, Sewer, and Storm which includes the Debt Service Interest Payments that will be made in Period 13. The following table provides an analysis of each of the City's Enterprise and Internal Service funds - showing 2017 revenues and expenditures by fund through December and includes the Fund Balance in the associated Capital Sub-Fund. FUND BALANCE ENTERPRISE FUNDS INTERNAL SERVICE FUNDS WATER SEWER SEWER METRO STORM SOLID WASTE AIRPORT CEMETERY INSURANCE WORKER'S COMPENSATION FACILITIES INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 41 Page 89 of 106 AGENDA BILL APPROVAL FORM Agenda Subject: Airport 2018-2022 CIP Discussion (10 Minutes) (Gaub) Date: March 5, 2018 Department: CD & PW Attachments: Airport CFP Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: For discussion only. Background Summary: Previously, Council asked for a review of the Capital Improvement Program for the Auburn Airport. Please find attached a copy of the current Capital Facilities Plan for discussion at the Study Session on March 12, 2018. Rev iewed by Council Committees: Councilmember:Staff:Gaub Meeting Date:March 12, 2018 Item Number: Page 90 of 106 City of Auburn Capital Facilities Plan 247 AIRPORT Current Facilities The City of Auburn operates the Auburn Municipal Airport, providing hangar and tie-down facilities/leasing space for aircraft-related businesses. As of 2016, there were approximately 142,000 take-offs and landings (aircraft operations) at the airport annually. Table A-1 “Facilities Inventory” lists the facilities with current capacity and location. The Airport Master Plan was completed in May 2015 for the period 2012 through 2032. Level of Service (LOS) The Auburn Municipal Airport Master Plan provides a maximum runway capacity (LOS standard) of 231,000 aircraft operations annually; one take-off or landing equals one aircraft operation. This LOS is recognized by the Federal Aviation Administration (FAA). The FAA requires the airport to have the capital facilities capacity (i.e., runways, taxiways, holding areas, terminal, hangars, water/sewer system, etc.) necessary to accommodate 100% of aircraft operations during any one year. By 2022, the Airport Master Plan forecasts the number of operations to be 198,623 – well below the capacity of the airport runway. Capital Facilities Projects and Financing The City’s Airport facilities include nine non-capacity capital projects at a cost of $ 7,533,187. These projects include the Runway Enhancements project, Jet A Fueling facility, Automated Weather Observation System, seal coating and land acquisition for future approaches. Table A- 2 shows the proposed financing plan followed by individual worksheets showing the project detail. Impact on Future Operating Budgets As Table A-3 shows, operating budget impacts of $16,000 are forecasted for Airport facilities during the six years 2019 – 2024. TABLE A-1 Facilities Inventory Airport FACILITY # of Aircraft # of Feet LOCATION Existing Inventory: Hangars (Public)145 2301 E Street NE Hangars (Private)103 2301 E Street NE Tiedowns 153 2301 E Street NE Air Strip 3,400 2301 E Street NE Total Existing Inventory 401 3,400 Proposed Capacity Projects: 2020 Land Acquisition 30 2301 E Street NE 2018 Runway Extension - 718 2301 E Street NE Total Proposed Capacity Projects 30 718 2022 Projected Inventory Total 431 4,118 CAPACITY Page 91 of 106 City of Auburn Capital Facilities Plan 248 TABLE A-2 CAPITAL FACILITIES PLAN PROJECTS AND FINANCING AIRPORT 2018 2019 2020 2021 2022 2023 Total Capacity Projects: None - Non-Capacity Projects: 1 Runway Enhancements Capital Costs 1,833,334 - - - - - 1,833,334 Funding Sources: Airport Fund 91,667 - - - - - 91,667 Grants 1,741,667 - - - - - 1,741,667 2 Jet A Fueling Facility Capital Costs - - 50,000 350,000 - - 400,000 Funding Sources: Airport Fund - - 50,000 - - - 50,000 Other - - - 350,000 - - 350,000 Grants - - - - - - - 3 Annual Repair and Replacement of Airport Facilities Capital Costs 20,000 20,000 20,000 20,000 20,000 20,000 120,000 Funding Sources: Airport Fund 20,000 20,000 20,000 20,000 20,000 20,000 120,000 Grants - - - - - - - 4 Automated Weather Observation System Capital Costs - - - - - 166,666 166,666 Funding Sources: Airport Fund - - - - - 8,333 8,333 Grants - - - - - 158,333 158,333 5 Airport Security Camera & Gate Access Upgrades Capital Costs - 70,000 - - - - 70,000 Funding Sources: Airport Fund - 70,000 - - - - 70,000 Grant - - - - - - - 6 Precision Approach Path Indicator (PAPI) for Runway Capital Costs - - - - 168,000 - 168,000 Funding Sources: Airport Fund - - - - 168,000 - 168,000 Grants - - - - - - - 7 Land Acquisition for Future Approaches Capital Costs 555,600 - - 3,666,667 - - 4,222,267 Funding Sources: Airport Fund 27,800 - - 183,333 - - 211,133 Grants 527,800 - - 3,483,334 - - 4,011,134 8 Runway RSA Improvements Capital Costs - 500,000 - - - - 500,000 Funding Sources: Airport Fund - 25,000 - - - - 25,000 Grants - 475,000 - - - - 475,000 9 West Side Fencing Capital Costs - - - - - 52,920 52,920 Funding Sources: Airport Fund - - - - - 2,646 2,646 Grants - - - - - 50,274 50,274 Page 92 of 106 City of Auburn Capital Facilities Plan 249 TABLE A-2 (continued) 2018 2019 2020 2021 2022 2023 Total SUMMARY: CAPITAL COSTS Capacity Projects - - - - - - - Non-Capacity Projects 2,408,934 590,000 70,000 4,036,667 188,000 239,586 7,533,187 Total Costs 2,408,934 590,000 70,000 4,036,667 188,000 239,586 7,533,187 FUNDING SOURCES: Airport Fund 139,467 115,000 70,000 203,333 188,000 30,979 746,779 Other - - - 350,000 - - 350,000 Grants (Fed,State,Local)2,269,467 475,000 - 3,483,334 - 208,607 6,436,408 Total Funding 2,408,934 590,000 70,000 4,036,667 188,000 239,586 7,533,187 Page 93 of 106 City of Auburn Capital Facilities Plan 250 AIRPORT FUND (465)Capital Facilities Plan Six Year Capital Facilities Plan, 2018-2023 Enterprise Funds Project Title: Runway Enhancements Project No:cp1516 Project Type:Non-Capacity Project Manager:Seth Wickstrom Description: Activity: 2017 YE 2018 Year End Funding Sources:Prior to 2017 Estimate 2018 Budget 2019 Budget Project Total Unrestricted Airport Revenue 11,633 16,666 91,667 - 119,966 Federal - Non-Primary Entitlement - 300,000 150,000 - 450,000 Federal Grant -Secured 209,384 - - 209,384 Federal Grant -Unsecured - - 1,500,000 - 1,500,000 State Grant -Secured 11,632 - - 11,632 State Grant -Unsecured - 16,667 91,667 - 108,334 232,649 333,333 1,833,334 - 2,399,316 Capital Expenditures: Design - 317,674 - - 317,674 Environmental Assessment 232,649 15,659 - - 248,308 Construction - - 1,833,334 - 1,833,334 232,649 333,333 1,833,334 - 2,399,316 Total 2020 2021 2022 2023 2018-2023 Funding Sources: Unrestricted Airport Revenue - - - - 91,667 Federal - Non-Primary Entitlement - - - - 150,000 Federal Grant -Unsecured - - - - 1,500,000 State Grant -Unsecured - - - - 91,667 - - - - 1,833,334 Capital Expenditures: Design - - - - - Environmental Assessment - - - - - Construction - - - - 1,833,334 - - - - 1,833,334 Grants / Other Sources:Federal Aviation Administration and Washington State Department of Transportation Total Expenditures: Total Funding Sources: Total Expenditures: Forecasted Project Cost: Total Funding Sources: Enhance Runway 16/34 per Airport Layout Plan & Master Plan Update for increased safety and utilization. This also includes the As-built AGIS Survey that is required following the runway construction. Progress Summary: Environmental Assessment is complete. Design planned for Federal FY 2017 and construction is anticipated to begin in Federal FY 2018. Budget has been adjusted to account for the anticipated funding plan identified by FAA for design and construction of the project per their letter of April 17, 2017. Future Impact on Operating Budget: Page 94 of 106 City of Auburn Capital Facilities Plan 251 AIRPORT FUND (465)Capital Facilities Plan Six Year Capital Facilities Plan, 2018-2023 Enterprise Funds Project Title: Jet A Fueling Facility Project No:apbd04 Project Type:Non-Capacity Project Manager:Kevin Snyder Description: Activity: 2017 YE 2018 Year End Funding Sources:Prior to 2017 Estimate 2018 Budget 2019 Budget Project Total Unrestricted Airport Revenue - 10,000 - - Other -Unsecured - - - - - State Grant -Unsecured - - - - - - 10,000 - - - Capital Expenditures: Design - - - - - Right of Way - - - - - Construction - 10,000 - 10,000 - 10,000 - - 10,000 Total 2020 2021 2022 2023 2018-2023 Funding Sources: Unrestricted Airport Revenue 50,000 - - - 50,000 Other -Unsecured - 350,000 - - 350,000 State Grant -Unsecured - - - - - 50,000 350,000 - - 400,000 Capital Expenditures: Design 50,000 - - - 50,000 Right of Way - - - - - Construction - 350,000 - - 350,000 50,000 350,000 - - 400,000 Construct any necessary site improvements to accommodate a temporary 2,200 gallon fueling truck for Jet A fuel on site in 2017. Design and construct a permanent 12,000 gallon fuel tank for Jet A service at the airport in 2020 and 2021 after the runway extension is complete and demand for Jet A fuel is established. Progress Summary: Future Impact on Operating Budget: On-going operational costs will be minimal as the estimated $5,000/month expenses will be offset by fuel sale revenues. Total Expenditures: Total Funding Sources: Total Expenditures: Forecasted Project Cost: Total Funding Sources: Page 95 of 106 City of Auburn Capital Facilities Plan 252 AIRPORT FUND (465)Capital Facilities Plan Six Year Capital Facilities Plan, 2018-2023 Enterprise Funds Project Title: Annual Repair and Replacement of Airport Facilities Project No:apbd05 Project Type:Non-Capacity Project Manager:Kevin Snyder Description: Activity: 2017 YE 2018 Year End Funding Sources:Prior to 2017 Estimate 2018 Budget 2019 Budget Project Total Unrestricted Airport Revenue - 20,000 20,000 20,000 40,000 Grants (Fed,State,Local)- - - - - Other - - - - - - 20,000 20,000 20,000 40,000 Capital Expenditures: Design - - - - - Right of Way - - - - - Construction - 20,000 20,000 20,000 40,000 - 20,000 20,000 20,000 40,000 Total 2020 2021 2022 2023 2018-2023 Funding Sources: Unrestricted Airport Revenue 20,000 20,000 20,000 20,000 120,000 Grants (Fed,State,Local)- - - - - Other - - - - - 20,000 20,000 20,000 20,000 120,000 Capital Expenditures: Design - - - - - Right of Way - - - - - Construction 20,000 20,000 20,000 20,000 120,000 20,000 20,000 20,000 20,000 120,000 Total Expenditures: Total Funding Sources: Total Expenditures: Forecasted Project Cost: Total Funding Sources: This is an annual repair and replacement program for the purpose of completing repairs to site fencing, hanger doors, fueling facilities, roof repairs, etc. Progress Summary: Future Impact on Operating Budget: None Page 96 of 106 City of Auburn Capital Facilities Plan 253 AIRPORT FUND (465)Capital Facilities Plan Six Year Capital Facilities Plan, 2018-2023 Enterprise Funds Project Title: Automated Weather Observation System Project No:cpxxxx Project Type:Non-Capacity Project Manager:Kevin Snyder Description: Activity: 2017 YE 2018 Year End Funding Sources:Prior to 2017 Estimate 2018 Budget 2019 Budget Project Total Unrestricted Airport Revenue - - - - - Federal - Non-Primary Entitlements - - - - - State Grant -Unsecured - - - - - - - - - - Capital Expenditures: Design - - - - - Right of Way - - - - - Construction - - - - - - - - - - Total 2020 2021 2022 2023 2018-2023 Funding Sources: Unrestricted Airport Revenue - - - 8,333 8,333 Federal - Non-Primary Entitlements - - - 150,000 150,000 State Grant -Unsecured - - - 8,333 8,333 - - - 166,666 166,666 Capital Expenditures: Design - - - 111,112 111,112 Right of Way - - - - - Construction - - - 55,554 55,554 - - - 166,666 166,666 Grants / Other Sources:Federal Aviation Administration and Washington State Department of Transportation Total Expenditures: Total Funding Sources: Total Expenditures: Forecasted Project Cost: Total Funding Sources: Install weather reporting equipment for instrument approach. Progress Summary: This project is dependent on grant funding which has been delayed from 2019 to 2022 in order to complete the Runway Enhancement project per FAA requirements. Future Impact on Operating Budget: $2,000 annually for on-going maintenance and repair Page 97 of 106 City of Auburn Capital Facilities Plan 254 AIRPORT FUND (465)Capital Facilities Plan Six Year Capital Facilities Plan, 2018-2023 Enterprise Funds Project Title: Airport Security Camera & Gate Access Upgrades Project No:cpxxxx Project Type:Non-Capacity Project Manager:Kevin Snyder Description: Activity: 2017 YE 2018 Year End Funding Sources:Prior to 2017 Estimate 2018 Budget 2019 Budget Project Total Unrestricted Airport Revenue - - - 70,000 - Federal Grant -Unsecured - - - - - State Grant -Unsecured - - - - - - - - 70,000 - Capital Expenditures: Design - - - 10,500 - Right of Way - - - - - Construction - - - 59,500 - - - - 70,000 - Total 2020 2021 2022 2023 2018-2023 Funding Sources: Unrestricted Airport Revenue - - - - 70,000 Federal Grant -Unsecured - - - - - State Grant -Unsecured - - - - - - - - - 70,000 Capital Expenditures: Design - - - - 10,500 Right of Way - - - - - Construction - - - - 59,500 - - - - 70,000 Grant / Other Sources:Project is not AIP Eligible Total Funding Sources: Total Expenditures: Total Expenditures: Total Funding Sources: Forecasted Project Cost: Increased security identified by the Federal Aviation Administration and the Transportation Security Administration for Airport control access gates (both vehicle and personnel). This project will install security cameras and replace the obsolete gate operator access control units. The proposed system will include cards and keypad operation with both inbound and outbound tracking of the authorized tenant/guest. Personnel gates will also have the same system. Progress Summary: Future Impact on Operating Budget: Estimated to be $2,000 annually to conduct maintenance and repair activities as needed. Page 98 of 106 City of Auburn Capital Facilities Plan 255 AIRPORT FUND (465)Capital Facilities Plan Six Year Capital Facilities Plan, 2018-2023 Enterprise Funds Project Title: Precision Approach Path Indicator (PAPI) for Runway Project No:cpxxxx Project Type:Non-Capacity Project Manager:Kevin Snyder Description: Activity: 2017 YE 2018 Year End Funding Sources:Prior to 2017 Estimate 2018 Budget 2019 Budget Project Total Unrestricted Airport Revenue - - - - - Federal Grant -Unsecured - - - - - State Grant -Unsecured - - - - - - - - - - Capital Expenditures: Design - - - - - Right of Way - - - - - Construction - - - - - - - - - - Total 2020 2021 2022 2023 2018-2023 Funding Sources: Unrestricted Airport Revenue - - 168,000 168,000 Federal - Non-Primary Entitlement - - - - Federal Grant -Unsecured - - - - - State Grant -Unsecured - - - - - - - 168,000 - 168,000 Capital Expenditures: Design - - 33,600 - 33,600 Right of Way - - - - Construction - - 134,400 - 134,400 - - 168,000 - 168,000 Total Expenditures: Total Funding Sources: Total Expenditures: Forecasted Project Cost: Total Funding Sources: Install Precision Approach Path Indicator (PAPI) for Runway to replace aging Visual Approach Slope Indicator (VASI) system. Progress Summary: Future Impact on Operating Budget: $2,000 annually for on-going maintenance and repair Page 99 of 106 City of Auburn Capital Facilities Plan 256 AIRPORT FUND (465)Capital Facilities Plan Six Year Capital Facilities Plan, 2018-2023 Enterprise Funds Project Title: Land Acquisition for Future Approaches Project No:cpxxxx Project Type: Project Manager:Kevin Snyder Description: Activity: 2017 YE 2018 Year End Funding Sources:Prior to 2017 Estimate 2018 Budget 2019 Budget Project Total Unrestricted Airport Revenue - - 27,800 - 27,800 Federal - Non-Primary Entitlement - - - - - Federal Grant -Unsecured - - 500,000 - 500,000 State Grant -Unsecured - - 27,800 27,800 - - 555,600 - 555,600 Capital Expenditures: Design - - - - - Acquisition - - 555,600 555,600 Construction - - - - - - - 555,600 - 555,600 Total 2020 2021 2022 2023 2018-2023 Funding Sources: Unrestricted Airport Revenue - 183,333 - - 211,133 Federal - Non-Primary Entitlement - 300,000 - - 800,000 Federal Grant -Unsecured - 3,000,000 - - 3,500,000 State Grant -Unsecured - 183,334 - - 211,134 - 3,666,667 - - 4,722,267 Capital Expenditures: Design - - - - - Acquisition - 3,666,667 - 4,222,267 Construction - - - - - - 3,666,667 - - 4,222,267 Grants / Other Sources:Federal Aviation Administration and Washington State Department of Transportation Non-Capacity Acquire a portion of land at the current Park and Ride for addressing the Runway Safety Area (RSA) and acquire the remainder of the Park and Ride for addressing the Runway Protection Zone (RPZ). Progress Summary: Per discussions with the FAA, the acquisition for the RSA was moved from 2021 to 2018 and the acquisition for the RPZ area was added to 2021. Budget has been adjusted to account for the anticipated funding plan identified by the FAA for design and construction of the project per their letter of April 17, 2017. Future Impact on Operating Budget: Total Expenditures: Total Expenditures: Total Funding Sources: Forecasted Project Cost: None Total Funding Sources: Page 100 of 106 City of Auburn Capital Facilities Plan 257 AIRPORT FUND (465)Capital Facilities Plan Six Year Capital Facilities Plan, 2018-2023 Enterprise Funds Project Title: Runway RSA Improvements Project No:cpxxxx Project Type: Project Manager:Kevin Snyder Description: Activity: 2017 YE 2018 Year End Funding Sources:Prior to 2017 Estimate 2018 Budget 2019 Budget Project Total Unrestricted Airport Revenue - - - 25,000 - Federal - Non-Primary Entitlement - - - 150,000 - Federal Grant -Unsecured - - - 300,000 - State Grant -Unsecured - - - 25,000 - - - - 500,000 - Capital Expenditures: Design - - - 125,000 - Right of Way - - - - - Construction - - - 375,000 - - - - 500,000 - Total 2020 2021 2022 2023 2018-2023 Funding Sources: Unrestricted Airport Revenue - - - - 25,000 Federal - Non-Primary Entitlement - - - - 150,000 Federal Grant -Unsecured - - - - 300,000 State Grant -Unsecured - - - - 25,000 - - - 500,000 Capital Expenditures: Design - - - - 125,000 Right of Way - - - - - Construction - - - - 375,000 - - - - 500,000 Total Expenditures: Non-Capacity Total Funding Sources: Total Expenditures: Forecasted Project Cost: Total Funding Sources: This project will complete necessary improvements to the property purchased from the Park and Ride to be in compliance with the FAA requirements for the Runway Safety Area. Progress Summary: Future Impact on Operating Budget: Page 101 of 106 City of Auburn Capital Facilities Plan 258 AIRPORT FUND (465)Capital Facilities Plan Six Year Capital Facilities Plan, 2018-2023 Enterprise Funds Project Title: West Side Fencing Project No:cpxxxx Project Type:Non-Capacity Project Manager:Kevin Snyder Description: Activity: 2017 YE 2018 Year End Funding Sources:Prior to 2017 Estimate 2018 Budget 2019 Budget Project Total Unrestricted Airport Revenue - - - - - Federal Grant -Unsecured - - - - - State Grant -Unsecured - - - - - - - - - - Capital Expenditures: Design - - - - - Right of Way - - - - - Construction - - - - - - - - - - Total 2020 2021 2022 2023 2018-2023 Funding Sources: Unrestricted Airport Revenue - - - 2,646 2,646 Federal Grant -Unsecured - - - 47,628 47,628 State Grant -Unsecured - - - 2,646 2,646 - - - 52,920 52,920 Capital Expenditures: Design - - - 5,292 5,292 Right of Way - - - - - Construction - - - 47,628 47,628 - - - 52,920 52,920 Grants / Other Sources:Federal Aviation Administration and Washington State Department of Transportation Total Expenditures: Total Funding Sources: Total Expenditures: Forecasted Project Cost: Total Funding Sources: Install fence on west side of property to complete perimeter security fencing and help control wildlife on the airport. Progress Summary: Future Impact on Operating Budget: Page 102 of 106 City of Auburn Capital Facilities Plan 259 TABLE A-3 Impact on Future Operating Budgets AIRPORT Project:2019 2020 2021 2022 2023 2024 Total 1 Airport Security Camera & Gate Access Upgrades -$ 2,000$ 2,000$ 2,000$ 2,000$ 2,000$ 10,000$ 2 Precision Approach Path Indicator (PAPI) for Runway - - - 2,000 2,000 2,000 6,000 Total -$ 2,000$ 2,000$ 4,000$ 4,000$ 4,000$ 16,000$ Page 103 of 106 AGENDA BILL APPROVAL FORM Agenda Subject: Matrix Date: March 6, 2018 Department: City Council Attachments: Special Focus Areas Key Matrix Budget Impact: Current Budget: $0 Proposed Revision: $0 Revised Budget: $0 Administrativ e Recommendation: Background Summary: Rev iewed by Council Committees: Councilmember:Staff: Meeting Date:March 12, 2018 Item Number: Page 104 of 106 Revised 01-08-2018 HEALTH & HUMAN SERVICES FINANCE & ECONOMIC DEVELOPMENT PUBLIC WORKS & COMMUNITY DEVELOPMENT MUNICIPAL SERVICES HUMAN SERVICES FUNDING CITY BUDGET & AMENDMENTS UTILITIES POLICE PUBLIC WELLNESS RISK MANAGEMENT ZONING, CODES & PERMITS SCORE JAIL DOMESTIC VIOLENCE SERVICES EQUIPMENT RENTAL INNOVATION & TECHNOLOGY DISTRICT COURT HOMELESSNESS SERVICES FACILITIES TRANSPORTATION PARKS & RECREATION AFFORDABLE HOUSING CITY REAL PROPERTY STREETS ANIMAL CONTROL COMMUNITY SERVICES LEGAL ENGINEERING SOLID WASTE HUMAN RESOURCES DEVELOPMENT INCENTIVES CAPITAL PROJECTS EMERGENCY PLANNING MEDICAL COMMUNITY RELATIONS BUSINESS DEVELOPMENT SUSTAINABILITY AIRPORT ECONOMIC DEVELOPMENT STRATEGIES ENVIRONMENTAL PROTECTION AIRPORT BUSINESSES CULTURAL ARTS & PUBLIC ARTS SISTER CITIES PLANNING MULTIMEDIA Councilmember Trout-Manuel, Chair Councilmember Holman, Chair Councilmember DaCorsi, Chair Councilmember Brown, Chair Councilmember Wales, Vice Chair Councilmember Brown, Vice Chair Deputy Mayor Baggett, Vice Chair Councilmember Peloza, Vice Chair 2018 MEETING DATES 2018 MEETING DATES 2018 MEETING DATES 2018 MEETING DATES January 22, 2018 February 12, 2018 February 26, 2018 January 8, 2018 March 26, 2018 April 9, 2018 April 23, 2018 March 12, 2018 May 29, 2018 June 11, 2018 June 25, 2018 May 14, 2018 July 23, 2018 August 13, 2018 August 27, 2018 July 9, 2018 September 24, 2018 October 8, 2018 October 22, 2018 September 10, 2018 November 26, 2018 December 10, 2018 December 24, 2018 November 13, 2018 SPECIAL FOCUS AREAS Page 105 of 106 Updated 01-23-2018 NO.TOPIC Chair STAFF LEAD(S)STUDY SESSION REVIEW DATE(S) COUNCIL DISCUSSION SUMMARY ACTION DATE 1 Capital Projects Update and Featured Capital Project Discussion Chair DaCorsi Vice Chair Deputy Mayor Baggett Asst. Director Gaub TBD 2 Community Sustainability Series: Economic and Statutory Considerations for Municipalities Chair DaCorsi Vice Chair Deputy Mayor Baggett Asst. Director Tate 4/23/2018 4 Sign Requerments Chair DaCorsi Vice Chair Deputy Mayor Baggett Asst. Director Tate TBD 5 Airport Facilities Assessment Report Chair Brown Vice Chair Peloza Asst. Director Gaub TBD 6 Airport Capital Needs Update Chair Brown Vice Chair Peloza Asst. Director Gaub 3/12/2018 7 Service Line Presentation Chair Brown Vice Chair Peloza Asst. Director Gaub 3/26/2018 8 Court Fees Chair Brown Vice Chair Peloza City Attorney Heid TBD 9 Homelessness Update Chair Trout-Manuel Vice Chair Wales Director Hinman 3/26/2018 10 Update on Court-DV Filings/Hearings and DV Model Firearms Program Chair Trout-Manuel Vice Chair Wales City Attorney Heid TBD 11 R.E.A.D.Y. Program Update Chair Trout-Manuel Vice Chair Wales Pat Bailey and City Attorney Heid 3/26/2018 12 Cost of Service Study - Planning and Development Fees Chair Holman Vice Chair Brown Finance Director Coleman TBD 13 Livable Cities Update Chair Holman Vice Chair Brown Asst. Director Tate TBD COUNCIL MATRIX Page 106 of 106