HomeMy WebLinkAbout06-24-2019 STUDY SESSION AGENDA PACKETCity Council Study Session Finance,
Technology and Economic Dev elopment
Special Focus Area
J une 24, 2019 - 5:30 P M
City Hall Council Chambers
A GE NDA
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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. 6723 (Gross) (5 Minutes)
Ordinance No. 6723, amending Ordinance No. 4683 to correct a legal description
related to a conditional use permit
B .Draft Resolution No. 5431 (Gaub) (5 Minutes)
A Resolution of the City Council of the City of A uburn, Washington, authorizing the
Mayor to execute a F ranchise Agreement between the City of A uburn and Comcast
Cable Communications, L L C and Comcast Cable Communications Management,
L L C, a P ennsylvania Corporation
I V.F I NA NC E, T E C HNO L O G Y A ND E C O NO MI C D E V E L O P ME NT D I S C US S I O N I T E MS
A .1st Quarter 2019 F inancial Report (Coleman) (15 Minutes)
Year to date through March 2019 status report based on financial data available as of
A pril 24, 2019 for the period ending March 31, 2019 and sales tax information
representing business activity that occurred through J anuary 2019
B .Ordinance No. 6720 (Coleman) (15 Minutes)
A n Ordinance of the City Council of the City of A uburn, Washington, amending
Ordinance No. 6693, the 2019-2020 B iennial Operating Budget Ordinance, as
amended by Ordinance No. 6712, authorizing amendment to the City of Auburn 2019-
2020 budget as set forth in schedule “A ” and schedule “B”
C.Cyber Security Update (Travis) (20 Minutes)
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
Page 1 of 142
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 2 of 142
AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6723 (Gross) (5 Minutes)
Date:
June 14, 2019
Department:
City Attorney
Attachments:
Ordinance 6723
Ordinance 6723 Exh A
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
Background Summary:
In 1996, the City Council adopted an ordinance, number 4863, that approved a CUP for a
property at 3244 Auburn Way South, which was later subdivided. The ordinance contained
both an incorrect legal description and an incorrect address for the parcel. The errors came
to light when the Auburn School District proposed to purchase a property located nearby 3244
Auburn Way South. The property the school district is interested in purchasing lies within the
defective legal description in the 1996 ordinance. Consequently, the title report for the purchase
shows that property incorrectly being the subject of the CUP. Before purchasing the property, the
school district would like to clear the title report of this error. Ordinance 6723 will correct the 1996
ordinance by replacing the legal description shown in exhibit A with the correct, subdivision legal
description and insert the correct address for the property.
Rev iewed by Council Committees:
Councilmember:Staff:Gross
Meeting Date:June 24, 2019 Item Number:
Page 3 of 142
--------------------------------
Ordinance No. 6273
DATE
Page 1 of 2 Rev. 2018
ORDINANCE NO. 6723
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AMENDING ORDINANCE 4863
TO CORRECT A SCRIVINERS ERROR
WHEREAS, the city council enacted Ordinance 4863 on May 20, 1996 to approve
a conditional use permit for construction of a drive-in restaurant (currently Flame Burger)
at 3244 Auburn Way South.
WHEREAS, prior to the City Council enacting the ordinance, the subject parcel,
along with adjoining parcels, were subdivided and the parcel was given a new legal
description.
WHEREAS, the ordinance contained neither the new legal description nor a
correctly described old legal description. Due to an error by the applicant, the ordinance
instead contained a defective version of the old legal description, substituting Northeast
for Northwest in the description.
WHEREAS, the ordinance also contained an incorrect street address for the
subject parcel, which was located at 3244 not 3224 Auburn Way South.
WHEREAS, the Survey Supervisor for the City of Auburn has confirmed that the
legal description and street address in the ordinance are incorrect, and he has identified
the correct address and legal description.
WHEREAS, the Auburn School District, which is purchasing property within the
defective legal description, has expressed interest in the City correcting Ordinance 4863
to remove confusion regarding the title history of the property the district is purchasing.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Page 4 of 142
--------------------------------
Ordinance No. 6273
DATE
Page 2 of 2 Rev. 2018
Section 1. Amendment to City Code. Ordinance 4863 is amended to read as
shown in Exhibit A.
Section 2. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 3. Severability. The provisions of this ordinance are declared to be
separate and severable. The invalidity of any clause, sentence, paragraph, subdivision,
section, or portion of this ordinance, or the invalidity of the application of it to any person
or circumstance, will not affect the validity of the remainder of this ordinance, or the validity
of its application to other persons or circumstances.
Section 4. Effective date. This Ordinance will 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
ATTEST:
____________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Steven L. Gross, City Attorney
Published: ____________________
Page 5 of 142
Exhibit A
ORDINANCE NO. 4 8 6 3
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, PROVIDING FOR A
CONDITIONAL USE PERMIT TO ALLOW THE
CONSTRUCTION OF A DRIVE-IN RESTAURANT ON
PROPERTY ZONED CN (NEIGHBORHOOD
COMMERCIAL) LOCATED AT 3244 AUBURN WAY SOUTH,
WITHIN THE CITY OF AUBURN, WASHINGTON
WHEREAS, Application No. CUP0006-95 dated May 5, 1995, together with site
plans therefore, has been submitted to the City of Auburn, Washington, by THOMAS
BUCKLEY, requesting a Conditional Use Permit to allow for the construction of a drive-in
restaurant in a CN (Neighborhood Commercial) zone located at 3244 Auburn Way South,
within the City of Auburn, Washington, hereinafter described in Section 2 of the
Ordinance; and
WHEREAS, said request above referred to, was referred to the Hearing Examiner
for study and public hearing thereon; and
WHEREAS, the Hearing Examiner, based upon staff review, held a public hearing
to consider said petition in the Council Chambers of the Auburn City Hall, on April 16,
1996, at the conclusion of which the Hearing Examiner recommended the approval of the
issuance of a Conditional Use Permit to allow for the construction of a drive-in restaurant
in a NC (Neighborhood Commercial) zone; and
WHEREAS, the City Council, on May 6, 1996, considered said request and
affirmed the Hearing Examiner’s decision for the issuance of a Conditional Use Permit to
allow for the construction of a drive-in restaurant in a CN (Neighborhood Commercial)
zone, located on property situated at 3244 Auburn W ay South, within the City of Auburn,
Washington, based upon the following Findings of Facts and Conclusions, to-wit:
Page 6 of 142
--------------------------------
Ordinance No. 4863
May 10, 1996
Page 2 of 5 Rev. 2018
FINDINGS OF FACT
1. The application, Andres Canenas, applies for a conditional use permit to allow the
construction of an 82 seat restaurant containing a drive-in window.
2. The subject property is located at 3244 Auburn W ay South and is currently vacant.
The property is zoned CN, (Neighborhood Commercial), and the subject zoning
requires a conditional use permit if a restaurant has a seating capacity of more
than 25. In addition, the conditional use permit is required for a drive-in window.
3. This zone is intended to provide for commercial uses which serve a limited
neighborhood area. The conditional use permit review process is intended to
regulate the compatibility of the use with the neighborhood.
4. Surrounding zoning and land uses in the vicinity include R-4, vacant, to the north;
CN, Commercial, to the south; CN, vacant, to the east; and CN, commercial, to the
west. The Comprehensive Plan designates the subject site for neighborhood
commercial uses, and land located in all directions contains a similarly
Comprehensive Plan designation except for property to the north which is
designated for multiple family uses.
5. The site is located on Auburn Way South which is a heavily traveled major arterial.
The vacant structure currently on the property is an eyesore.
6. The applicant is proposing to remodel and add to the existing structure. Which
finished, the restaurant will be 3,000 square feet in area and will have 31 on-site
parking spaces.
7. The subject property is 32,942 square foot lot which is part of a four lot short plat.
All four lots have access from Auburn Way South along a common access.
8. A Mitigated Determination of Non-Significance containing 12 conditions of
approval has been issued addressing storm drainage, erosion control, and traffic.
CONCLUSIONS OF LAW
1. The permit may be approved if it is consistent with criteria set forth in the Zoning
Ordinance for the granting of a conditional use permit.
2. The first criteria is that the use have no more of an adverse effect on the health,
safety, or comfort of persons living or working in the area than would a use
generally permitted in the district. Given its location, the proposal will not have an
adverse effect upon the area. The proposal will replace an abandoned structure
and will ensure a coordinated access to the major arterial.
Page 7 of 142
--------------------------------
Ordinance No. 4863
May 10, 1996
Page 3 of 5 Rev. 2018
3. The Comprehensive Plan illustrates the area to be appropriate for uses such as
this one. Accordingly, the proposal complies with the goals, policies, and
objectives of the plan.
4. The proposal complies with all requires of the Zoning Ordinance.
5. The application contains drawings of building elevations which ensure that it will
be compatible with the neighborhood.
6. The proposal will not adversely affect the public infrastructure since traffic
improvements have been required as a result of the Mitigated Determination of
Non-Significance.
For each of the above referenced reasons, the recommendation of the Hearing
Examiner to the Auburn City Council on this Conditional Use Permit to allow the
construction of a drive-in restaurant in a CN (Neighborhood Commercial) zone, located
on property situated at 3244 Auburn Way South, is approved.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Section 1. The above cited Hearing Examiner’s Findings of Fact and
Conclusions, are herewith incorporated in this Ordinance.
Section 2. A Conditional Use Permit is hereby approved to allow the
construction of a drive-in restaurant in a CN (Neighborhood Commercial) zone, located
on property situated at 3244 Auburn Way South, within the City of Auburn, County of
King, State of Washington, legally described on attached Exhibit “A,” and made a part
hereof as though set forth in full herein.
Section 3. Upon the passage, approval and publication of this Ordinance as
provided by law, the City Clerk of the City of Auburn shall cause this Ordinance to be
recorded in the office of the King County Auditor.
Page 8 of 142
--------------------------------
Ordinance No. 4863
May 10, 1996
Page 4 of 5 Rev. 2018
Section 4. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 5. Severability. The provisions of this ordinance are declared to be
separate and severable. The invalidity of any clause, sentence, paragraph, subdivision,
section, or portion of this ordinance, or the invalidity of the application of it to any person
or circumstance, will not affect the validity of the remainder of this ordinance, or the validity
of its application to other persons or circumstances.
Section 4. Effective date. This Ordinance will take effect and be in force five
days from and after its passage, approval, and publication as provided by law.
INTRODUCED: _______________
PASSED: ____________________
APPROVED: _________________
________________________________
CHARLES A. BOOTH
MAYOR
ATTEST:
____________________________
Robin Wohlhueter,
City Clerk
APPROVED AS TO FORM:
____________________________
Michael J. Reynolds,
City Attorney
Published: ____________________
Page 9 of 142
--------------------------------
Ordinance No. 4863
May 10, 1996
Page 5 of 5 Rev. 2018
EXHIBIT A
LEGAL DESCRIPITION
Lot 1
THAT PORTION OF THE EAST HALF OF THE NORTHEAST QUARTER OF THE
SOUTWEST QUARTER OF THE SOUTHWEST QUARTER AND OF THE WEST HALF
OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF THE
SOUTHWEST QUARTER OF SECTION 21 TOWNSHIP 21 NORHT, RANGE 5 EAST,
W.M., KING COUNTY WASHINGTON, LYING SOUTH OF A LINE DRAWN PARALLEL
WITH AND 250.00 FEET NORTH, WHEN MEASURED AT RIGHT ANGLES, OF THE
NORTH MARGIN OF PRIMARY STATE HIGHWAY NO. 5 (AUBURN WAY SOUTH):
EXCEPT THE WEST 125.00 FEET OF SAID EAST HALF: AND
EXCEPT THAT PORTION OF THE WEST HALF OF THE NORTHEAST QUARTER OF
THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 21,
TOWNSHIP 21 NORTH, RANGE 5 EAST, W.M. KING COUNTY, WASHINGTON,
DESCRIBED AS FOLLOWS:
BEGINNING AT THE INTERSECTION OF THE EAST LINE OF SAID WEST HALF
WITH THE NORTH MARGIN OF PRIMARY STATE HIGHWAY NO. 5 (AUBURN WAY
SOUTH): THENCE N 89 DEGREES, 43’ 51” W, ALONG SIAD MARGIN, A DISTANCE
OF 50.00 FEET: THENCE N 00 DEGREES 46’ 31” E, PARALLEL WITH SAID EAST
LINE OF THE WEST HALF, A DISTANCE OF 205.01 FEET: THENCE N 67
DEGREES 24’ 34” W, A DISTANCE OF 118.48 FEET TO A POINT ON A LINE
DRAWN PARALLEL WITH AND 250.00 FEET NORTH OF SAID STREET MARGIN:
THENCE S 89 DEGREES 43’ 51” E, ALONG SAID LINE. A DISTANCE OF 160.00
FEET TO A POINT ON SAID EAST LINE OF THE HEREINBEFORE DESCRIBED
SUBDIVISION: THENCE S 00 DEGREES 40’ 31” W. ALONG SAID EAST LINE. A
DISTANCE OF 250.01 FEET TO THE POINT OF BEGINNING.
LOT 1, CITY OF AUBURN SHORT PLAT NUMBER SPL0003-95, RECORDED UNDER
RECORDING NUMBER 9508210641 RECORDS OF KING COUNTY, BEING A
PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF
SECTION 21, TOWNSHIP 21 NORTH, RANGE 5 EAST, WILLAMETTE MERIDIAN, IN
THE CITY OF AUBURN, KING COUNTY, WASHINGTON.
Page 10 of 142
AGENDA BILL APPROVAL FORM
Agenda Subject:
Draft Resolution No. 5431 (Gaub) (5 Minutes)
Date:
June 13, 2019
Department:
Public Works
Attachments:
Draft Res olution No. 5431
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
For discussion only.
Background Summary:
Chapter 13.36 of the Auburn City Code (“ACC”) requires cable television providers to obtain
a franchise to operate in the City.
Comcast seeks a 10 year Franchise. Comcast has operated in the City under a franchise
since 2002 and as various preceding parent companies since 1978. It has applied to renew
its franchise. The new agreement updates terms to comply with current federal law and
regulations. Comcast continues to provide three Public, Education, and Government (“PEG”)
Channels, the equipment for which is paid for by a $.35 per subscriber per month fee. (The
City remains responsible for the cost of programming). Comcast continues to provide basic
cable services without charge to public entities including schools, libraries, fire stations, and
City buildings, It also continues to provide a 30% discount from the Basic Service charge for
low-income, disabled, and senior customers.
A Public Hearing to consider this application and hear public comment is scheduled before
the City Council on July 15, 2019, in accordance with Auburn City Code Chapter 13.36.050.
Resolution No. 5431, if adopted by City Council, authorizes the Mayor to execute Franchise
Agreement No. FRN19-0012 subject to terms and conditions outlined in the Agreement.
Rev iewed by Council Committees:
Councilmember:Staff:Gaub
Meeting Date:June 24, 2019 Item Number:
Page 11 of 142
DRAFT Resolution No. 5431
Franchise No. FRN19-0012
Page 1 of 51
RESOLUTION NO. 5431
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE MAYOR
TO EXECUTE A FRANCHISE AGREEMENT BETWEEN
THE CITY OF AUBURN AND COMCAST CABLE
COMMUNICATIONS, LLC AND COMCAST CABLE
COMMUNICATIONS MANAGEMENT, LLC, A
PENNSYLVANIA CORPORATION
WHEREAS, Comcast Cable Communications, LLC & Comcast Cable
Communications Management, LLC (“Comcast”) has applied to the City of Auburn (“City”)
for renewal of 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, the City is authorized by Revised Code of Washington 35A.47.040
and Auburn City Code (ACC) 13.36.010 et seq. and ACC 20.06.010 to grant a non-
exclusive franchise for the use of public streets, bridges, or other public ways for the
transmission and distribution of electrical energy, signals and other methods of
communication, including cable telecommunications and cable television; and
WHEREAS, following proper notice, the City Council held a public hearing on
Comcast’s request for a Franchise, at which time representatives of Comcast 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 Comcast.
Page 12 of 142
DRAFT Resolution No. 5431
Franchise No. FRN19-0012
Page 2 of 51
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN
WASHINGTON, resolves as follows:
Section 1. The Mayor is authorized to execute a Cable Television Franchise
Agreement with Comcast Cable Communications, LLC and Comcast Cable
Communications Management, LLC in substantially the same form as the Agreement
attached as Exhibit A.
Section 2. The Mayor is authorized to implement those administrative
procedures necessary to carry out the directives of this legislation.
Section 3. This Resolution will take effect and be in full force on passage and
signatures.
Dated and Signed this _____ day of _________________, 2019.
CITY OF AUBURN
____________________________
NANCY BACKUS, MAYOR
ATTEST:
____________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Steven L. Gross, City Attorney
Page 13 of 142
DRAFT Resolution No. 5431
Franchise No. FRN19-0012
Page 3 of 51
CABLE FRANCHISE AGREEMENT
Between the City of Auburn, Washington, and Comcast Cable Communications, LLC &
Comcast Cable Communications Management, LLC d/b/a Comcast.
This Cable Franchise Agreement (“Franchise”) is made and entered into by and between The City
of Auburn, Washington, a municipal corporation (City), and Comcast Cable Communications,
LLC & Comcast Cable Communications Management, LLC d/b/a Comcast, a Pennsylvania
corporation (collectively, “Grantee”). The City and Grantee are sometimes referred to hereinafter
collectively as the “Parties.”
WHEREAS, the City is authorized by 47 USC § 541 et seq., RCW 35A.47.040, ACC
20.06.010 and ACC Chapter 13.36 to grant and renew nonexclusive cable franchise agreements
for the installation, operation, and maintenance of cable television systems and otherwise
regulate cable communications services within the City’s incorporated boundary; and
WHEREAS, the City has reviewed Grantee's performance under the prior franchise and the
quality of service during the prior franchise term, has identified the future cable-related needs and
interests of the City and its citizens, and has determined that Grantee's plans for operating and
maintaining its Cable System are adequate; and
WHEREAS, the public has had adequate notice and opportunity to comment on this
Franchise during a public proceeding; and
WHEREAS, the Mayor and City Council has determined that is in the best interests of,
and consistent with, the health, safety, and welfare of the citizens of the City to grant a franchise
to Grantee to use public rights-of-way for the purposes specified in this Franchise and on the
terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual promises made herein, and other
good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
the Parties do hereby agree as follows:
SECTION 1: PRINCIPLES AND INTENT OF THE CITY
The following provisions are statements of the City's intent in entering into this Franchise, but do
not necessarily reflect Grantee's intent and shall not supplant or modify specific provisions of the
Franchise:
1.1. Ensure that Auburn stays at the forefront of cable service by keeping the Cable System up
to date with features meeting the current and future cable-related needs and interests of the
community;
1.2. Encourage the widest feasible scope and diversity of Programming and other services to all
City residents consistent with community needs and interests;
Page 14 of 142
DRAFT Resolution No. 5431
Franchise No. FRN19-0012
Page 4 of 51
1.3. Encourage competitive, affordable, and equal access to advanced communications services
of all kinds to residents and businesses of the City of Auburn on a non-discriminatory
basis;
1.4. Ensure that Auburn residents have the opportunity to view public, educational, and
governmental Programming;
1.5. Ensure that rates and charges for cable Programming, equipment, and services provided
over the Cable System are affordable and consistent with federal standards;
1.6. Ensure that Auburn residents receive high quality customer service;
1.7. Ensure that the City receives appropriate compensation for the use of its facilities and
property and that installation and maintenance of cable Facilities comply with all
applicable City regulations, and do not interfere with the City's legitimate use of its own
facilities and property;
1.8. Encourage competition among Cable Operators and between Cable Operators and other
providers of communications services;
1.9. Protect the City's interests and the health, safety, and welfare of its residents; and
1.10. Provide for timely mandatory Government Access to all Cable Systems in times of civil
emergency.
SECTION 2: DEFINITIONS
For the purpose of this Franchise, the following terms, phrases, and their derivations shall have
the meanings given below unless the context clearly mandates a different interpretation. Where
the context so indicates, the present tense shall imply the future tense, words in plural include the
singular, and words in singular include the plural. The word “shall” is always mandatory, not
merely directory, and the word “may” is discretionary. In the event that the meaning of any word
or phrase not defined in this Section is uncertain, the definitions contained in FCC rules and
regulations shall apply.
2.1 “Access” means the availability for Non-Commercial use by various governmental and
educational agencies, institutions, and organizations in the community, including the City
and its designees, of a particular Channel on the Cable System to distribute programming to
Subscribers, as permitted under applicable law.
A. “Educational Access” means Access where Schools are the primary users having editorial
control over programming and services.
B. “Government Access” means Access where governmental institutions or their designees
are the primary users having editorial control over programming and services.
Page 15 of 142
DRAFT Resolution No. 5431
Franchise No. FRN19-0012
Page 5 of 51
C. "Public Access" means Access for the public, including organizations, groups and
individuals.
2.2 “Access Channel” means any Channel or portion of a Channel on a Cable System required
by the Franchise to be set aside by the Grantee for public, education, or governmental use.
2.3 “Affiliated Entity” means, when used in connection with Grantee, any Person who owns or
controls, is owned by or controlled by, or is under common ownership or control with
Grantee.
2.4 "Basic Service" means the lowest Tier of Cable Service that includes, at a minimum, the
retransmission of local television broadcast signals.
2.5 “Cable Act” shall mean the Communications Act of 1934, including the Cable
Communications Policy Act of 1984, as amended by the Cable Television Consumer
Protection and Competition Act of 1992, and the Telecommunications Act of 1996, any
and amendments thereto.
2.6 "Cable Operator" means any Person or group of Persons (A) who provides Cable Services
over a Cable System and directly or through one or more affiliates owns a significant
interest in such Cable System, or (B) who otherwise controls or, through any arrangement,
is responsible for the management and operation of such a Cable System.
2.7 “Cable Service” means
A. The one-way transmission to Subscribers of (1) Video Programming or (2) other
Programming service, and
B. Subscriber interaction, if any, that is required for the selection or use of such Video
Programming or other Programming service.
2.8 “Cable System” means Grantee’s Facilities within the Franchise Area, consisting of a set of
closed transmission paths and associated signal generation, reception and control
equipment that is designed to provide Cable Service, which includes Video Programming,
and which is provided to multiple Subscribers within a community, but such term does not
include:
A. A facility that serves only to retransmit the television signals of one or more television
broadcast stations;
B. A facility that serves Subscribers without using any public right-of-way;
C. A facility of a common carrier which is subject, in whole or in part, to the provisions of
Title II of the federal Communications Act (47 U.S.C. § 201 et seq.), except that such
Page 16 of 142
DRAFT Resolution No. 5431
Franchise No. FRN19-0012
Page 6 of 51
facility shall be considered a Cable System (other than for purposes of 47 U.S.C. 541(c))
to the extent such facility is used in the transmission of Video Programming directly to
Subscribers, unless the extent of such use is solely to provide interactive on-demand
services;
D. An open video system that complies with 47 U.S.C. § 573; or
E. Any facilities of any electric utility used solely for operating its electric utility systems.
2.9 "Channel" means a portion of the electromagnetic frequency spectrum which is used in a
Cable System and which is capable of delivering a television channel, whether delivered in
an analog or digital format.
2.10 "City Council" means the legislative body of the City of Auburn.
2.11 “Complaint” means a Subscriber’s verbal or written contact with the Grantee to express a
grievance or dissatisfaction concerning Cable Service that are not within the regulatory
control of the City and does not include issues that are promptly resolved to the
Subscriber’s satisfaction.
2.12 “Designated Access Provider” means the entity or entities designated by the City to
manage or co-manage the Access Channel and facilities, and may include the City as a
Designated Access Provider.
2.13 "Demarcation Point" means the physical point at which the Cable System enters a
Subscriber's home or building.
2.14 "Document" or "Records" means written or graphic materials, however produced or
reproduced, or any other tangible permanent documents, including those maintained by
computer or other electronic or digital means, maintained by the Grantee in the ordinary
course of conducting its business.
2.15 "Dwelling Unit" means any building, or portion thereof, that has independent living
facilities, including provisions for cooking, sanitation and sleeping, designed for residential
occupancy.
2.16 "Effective Date" means the Effective Date of this Franchise pursuant to subsection 3.4.
2.17 “Facility” means any distribution or component of the Cable System.
2.18 "FCC" means the Federal Communications Commission or its lawful successor.
2.19 "Franchise Area" means the area within the jurisdictional boundaries of the City, including
any areas annexed by the City during the term of this Franchise.
Page 17 of 142
DRAFT Resolution No. 5431
Franchise No. FRN19-0012
Page 7 of 51
2.20 "Franchise Fee" means consideration paid by Grantee for the privilege to construct and/or
operate a Cable System in the Franchise Area as set forth in accordance with Section 622
of the Cable Act.
2.21 "Gross Revenues" means, for purposes of Franchise Fee calculations, all revenue received
by the Grantee, in whatever form and from all sources, derived from the operation of the
Grantee’s Cable System to provide Cable Services, in the Franchise Area.
A. Gross Revenues include, by way of illustration and not limitation, monthly fees charged
to Subscribers for Cable Services, including Basic Service and all other Tiers of Cable
Service, Pay-Per-View Service, Cable Service installation, disconnection, change-in-
service and reconnection fees, Leased Access Channel fees, late fees, payments received
by Grantee from programmers for carriage of Cable Services on the Cable System and
recognized as revenue under generally accepted accounting principles (GAAP), revenues
from rentals of Cable System equipment such as converters, advertising revenues,
advertising sales commissions if recognized as revenue under GAAP, additional outlet
fees, Franchise Fees, and revenues from home shopping Channels.
B. Gross Revenues shall not include Bad Debt, provided that all or part of any such Bad
Debt that is written off but subsequently collected shall be included in Gross Revenues in
the period collected, or revenues received from telecommunications services.
C. Gross Revenues shall be determined without deduction for (1) any operating expense; (2)
any accrual; or (3) any other expenditure, regardless of whether such expense, accrual or
expenditure reflects a cash payment, and revenue shall be counted only once in
determining Gross Revenues.
D. Gross Revenues also does not include capital contributions, taxes on services furnished
by Grantee which are imposed directly on any Subscriber or user by the State, City or
other governmental unit and which are collected by Grantee on behalf of said
governmental unit, excluding Franchise Fees.
E. This definition shall be construed so as to include all Gross Revenues to the maximum
extent permitted by federal and State law, except to the extent specifically excluded in
this subsection, and encompasses revenues that may develop in the future, whether or not
anticipated.
F. If a statutory change in State or federal law, or a decision of the FCC or a court of
competent jurisdiction expands the categories of revenue available to the City for the
Franchise Fee assessment beyond those permitted under this definition as of the Effective
Date, that change shall automatically be included in the definition of Gross Revenues
under this Franchise, provided that the City imposes the same requirement upon any other
similarly situated multichannel video provider over which the City has jurisdiction and
authority to impose such fees.
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2.22 "Headend" means Grantee’s primary facility for signal reception and dissemination on the
Cable System, including cables, antennas, wires, satellite dishes, monitors, switchers,
modulators, processors, and other related equipment.
2.23 "Leased Access Channel" means a Channel or portion of a Channel made available by
Grantee for Programming by others for a fee.
2.24 “Liquidated Damages” means any requirement imposed on the Grantee to pay specified
sums to the City as a result of performance deficiencies and/or Franchise violations, as
described in Section 13.8.
2.25 "Non-Cable Services" means any service that is distributed over the Cable System, other
than a Cable Service.
2.26 “Normal Business Hours” means those hours during which most similar businesses in the
community are open to serve customers.
2.27 "Normal Operating Conditions" means service conditions within the control of the Grantee.
Those conditions that are not within the control of the Grantee include, but are not limited
to, natural disasters, civil disturbances, power outages, telephone network outages, and
severe or unusual-weather conditions. Those conditions that are ordinarily within the
control of the Grantee include, but are not limited to, special promotions, pay-per-view
events, rate increases, regular peak or seasonal demand periods, and maintenance or
Upgrade of the Cable System.
2.28 “Parent Corporation" means any existing or future corporation, entity, or Person with
greater than fifty percent (50%) ownership or control over Grantee.
2.29 “Pay-Per-View” service means programming offered on a per-program or per-event basis
for which a separate fee is charged.
2.30 "PEG Access" means Public Access, Educational Access, and Government Access, jointly
or severally.
2.31 "Person" means any individual, partnership, association, joint stock company, trust,
corporation or governmental entity.
2.32 “Right-of-Way” or “Rights-of-Way” means the surface of, and the space above and below,
any public street, highway, freeway, bridge, land path, alley, court, boulevard, sidewalk, way,
lane, public way, drive, circle or other public Right-of-Way, including, but not limited to,
general public utility easements, or Right-of-Way dedicated for compatible uses now or
hereafter held by the City in the Franchise Area, which shall entitle the Grantee to the use
thereof for the purpose of installing, operating, repairing, upgrading and maintaining the Cable
System. Right-of-Way shall also mean any easement now or hereafter held by the City within
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the Franchise Area for the purpose of utility or public service use dedicated for compatible
uses.
2.33 “School” means an y State accredited public educational institution including, for example,
primary and secondary Schools (K-12).
2.34 “State” means the State of Washington.
2.35 “Subscriber” means any Person who lawfull y receives Cable Service provided b y
Grantee by means of the Cable System and whose premises are physically wired and
lawfull y activated to receive Cable Service from Grantee’s Cable System.
2.36 “Tier” means a group of Channels for which a separate periodic rate is charged.
2.37 “Video Programming” means programming provided b y, or generall y considered
comparable to programming provided b y television broadcast station.
SECTION 3: GRANT OF FRANCHISE
3.1 Grant of Franchise
A. The City hereby grants to Grantee a nonexclusive Franchise authorizing Grantee to
construct and operate a Cable System in, along, among, upon, across, above, over, under
or in any Right-of-Ways within the Franchise Area for the purpose to install such wires,
cables, conductors, ducts, conduits, vaults, manholes, pedestals, amplifiers, appliances,
attachments, and other related property or equipment and to use existing poles as may be
necessary or appurtenant for the deployment of Cable Services over the Cable System.
This Franchise is subject to and shall be governed by all applicable provisions now
existing or hereafter amended of federal, State and local laws and regulations, except as
specifically provided for within this Franchise.
B. This Franchise expressly authorizes Grantee to provide only Cable Services as allowed
by applicable law, and to construct, operate, or maintain Cable System facilities in the
Franchise Area. This Franchise is not a bar on Grantee’s provision of non-Cable Services.
This Franchise does not relieve Grantee of any obligation it may have to comply with any
local, state or federal requirements that lawfully apply to non-cable services.
C. This Franchise shall constitute both a right to provide the Cable Services required by, and
to fulfill the obligations set forth in, the provisions of this Franchise.
D. Grantee guarantees, as a condition of exercising the privileges granted by this Franchise,
that any Affiliated Entity of the Grantee directly involved in the offering of Cable Service
in the Franchise Area, will also comply with the obligations of this Franchise.
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E. Unless otherwise stated in this Franchise, in the event of a conflict between the Auburn
City Code and this Franchise, this Franchise shall control, and shall not be unilaterally
altered by the City through subsequent ordinance, regulation, resolution, or other
enactment of the City, except within the lawful exercise of the City’s police power.
1. Grantee acknowledges, without waiving its right to challenge any City ordinance or
regulation that conflicts with its rights under this Franchise, that its rights hereunder
are subject to the police powers of the City to adopt and enforce ordinances necessary
to protect the health, safety, and welfare of the public, and Grantee agrees to comply
with all applicable laws and ordinances enacted by the City pursuant to such power.
2. This Franchise shall not be interpreted to prevent the City from lawfully imposing
additional conditions, including additional compensation conditions for use of the
rights-of-way.
3. No rights shall pass to Grantee by implication and this Franchise shall not include,
nor be a substitute for:
a. Any other permit or authorization required for the privilege of transacting and
carrying on a business within the City that may be required by the ordinances and
laws of the City;
b. Any permit, agreement, or authorization required by the City for rights-of-way
users in connection with operation on or in rights-of-way or public property,
including, by way of example and not limitation, construction or excavation
permits; or
c. Any permits or agreements for occupying any other property of the City or private
entities to which access is not specifically granted by this Franchise including,
without limitation, permits and agreements for placing devices on poles, in
conduits or in or on other structures.
F. This Franchise is intended to convey limited rights and interests only as to those rights-
of-way in which the City has a proprietary interest, is not a warranty of title or interest in
any rights-of-way, does not provide the Grantee with any interest in any particular
location within the rights-of-way, and does not confer rights other than as expressly
provided in the grant hereof.
G. This City has granted this Franchise in reliance upon the Grantee’s business skill,
reputation, financial capacity, and character and may not be assigned, transferred,
conveyed, or otherwise encumbered without the express written consent of the City
pursuant to Section 15 of this Franchise.
3.2 Use of Rights-of-Way
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A. Any privilege claimed under this Franchise in any right-of-way shall be subordinated to
any prior lawful occupancy of the right-of-way.
B. Within parameters reasonably related to the City’s role in protecting the public health,
safety, and welfare, the City may require, through the permitting process, that the Cable
System Facilities be installed at a particular time, at a specific place, or in a particular
manner as a condition of access to a particular right-of-way and may deny access if
Grantee is not willing to comply with the City’s requirements.
3.3 Term
A. The term of this Franchise, and all rights, privileges, obligations, and restrictions
pertaining thereto, shall be ten (10) years from the Effective Date of this Franchise,
unless terminated earlier as provided herein.
B. The City and Grantee agree that any proceedings undertaken relative to the renewal of
this Franchise shall be governed by and comply with the provisions of 47 U.S.C. § 546
and applicable ACC.
C. If Grantee requests renewal of this Franchise in accordance with the provisions of Section
626 of the Cable Act prior to the expiration of its term or any extension thereof, the
Franchise automatically continues month to month until renewed or until either party
gives written notice at least one hundred eighty (180) days in advance of the intent not to
renew the Franchise.
3.4 Acceptance and Effective Date
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 A, and incorporated herein by this reference, (2)
all verifications of insurance coverage specified under Section 6.3, (3) the security
specified in Section 6.4, and (4) any outstanding application fees per the City fee
schedule. These four items shall collectively be the “Franchise Acceptance.” The
Effective Date of this Franchise shall be the date upon which the City Clerk Receives the
Franchise Acceptance.
B. Should Grantee fail to file the Franchise Acceptance with the City Clerk within sixty (60)
days after this Franchise is approved by City Council, this Franchise shall be null and
void.
3.5 Franchise Nonexclusive
This Franchise shall be nonexclusive, and subject to all prior rights, interests, easements,
permits or licenses granted by the Cit y to an y Person to use an y propert y for any
purpose whatsoever, including the right of the City to use the same for any purpose it
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deems fit, including the same or similar purposes allowed Grantee hereunder, and the City
may at any time grant authorization to use the Rights-of-Way for an y purpose not
incompatible with Grantee’s authority under this Franchise and for such additional
franchises for cable systems as the City deems appropriate.
3.6 Effect of Acceptance
By accepting this Franchise, Grantee: (A) acknowledges and accepts the City’s legal right to
issue and enforce the Franchise; (B) agrees that it will not oppose the City’s intervening, to
the extent the City is legally entitled to do so, in any legal or regulatory proceeding affecting
the Cable System; (C) accepts and agrees to comply with each and every provision of this
Franchise; and (D) agrees that the Franchise was granted pursuant to processes and
procedures consistent with applicable law, and that it will not raise any claim to the contrary.
3.7 Modifications to this Franchise
A. This Franchise is subject to the lawful terms and conditions of the Auburn City Code, as
the same is now or is hereafter amended by the lawful exercise of the City’s police
powers.
B. This Franchise may be amended at any time by mutual written agreement of the parties
for any reason.
C. Competitive Equity:
1. The City reserves the right to grant additional franchises or similar authorizations to
provide Video Programming services via Cable Systems or similar wireline systems
located in the Right of Way. The City intends to treat wireline competitors in a
nondiscriminatory manner in keeping with federal law. If, following the Effective
Date of this Franchise, the City grants such an additional franchise or authorization to
use the Right of Way to provide such services and Grantee believes the City has done
so on terms materially more favorable than the obligations under this Agreement,
then the provisions of this subsection will apply.
2. As part of this Franchise, the City and Grantee have mutually agreed upon the
following terms as a condition of granting the Franchise, which terms may place the
Grantee at a significant competitive disadvantage if not required of a wireline
competitor: the Franchise Fee, PEG Access funding, PEG Access Channels, records
and reports, and customer service obligations (hereinafter “Material Obligations”).
The City and Grantee agree that these Material Obligations bear no relationship to the
technology employed by the Grantee or a wireline competitor and as such can
reasonably be expected to be applied fairly across all wireline competitors. The City
and Grantee further agree that this provision shall not require a word for word
identical franchise or authorization for competitive equity so long as the regulatory
and financial burdens on each entity are generally equivalent.
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3. Within one (1) year of the adoption of a wireline competitor’s franchise or similar
authorization, Grantee must notify the City in writing of the Material Obligations in
this Franchise that exceed the Material Obligations of the wireline competitor’s
franchise or similar authorization. The City shall have one hundred twenty (120) days
to agree to allow Grantee to adopt the same Material Obligations provided to the
wireline competitor, or dispute that the Material Obligations are different. In the event
the City disputes that the Material Obligations are different, Grantee may bring an
action in federal or State court for a determination as to whether the Material
Obligations are different and as to what Franchise amendments would be necessary to
remedy the disparity. Alternatively, Grantee may notify the City that it elects to
immediately commence the renewal process under 47 U.S.C. § 546 and to have the
remaining term of this Franchise shortened to not more than thirty (30) months.
4. Nothing in this subsection is intended to alter the rights or obligations of either party
under applicable federal or State law, and it shall only apply to the extent permitted
under applicable law and FCC orders. In no event will the City be required to refund
or to offset against future amounts due the value of benefits already received.
5. This provision does not apply if the City is ordered or required to issue a franchise on
different terms and conditions, or it is legally unable to do so; and the relief is
contingent on the new Cable Operator actually commencing provision of service in
the market to its first customer. Should the new Cable Operator fail to continuously
provide service for a period of six (6) months, the City has the right to implement this
Franchise with its original terms upon one hundred eighty (180) days’ notice to
Grantee.
6. This subsection does not apply to open video systems, nor does it apply to common
carrier systems exempted from franchise requirements pursuant to 47 U.S.C. § 571;
or to systems that serve less than 5% (five percent) of the geographic area of the City;
or to systems that only provide video services via the public Internet.
SECTION 4: FRANCHISE FEES AND FINANCIAL CONTROLS
4.1. Franchise Fees
As compensation for the use of the City’s Rights-of-Way, Grantee shall pay as a Franchise
Fee to the City, throughout the duration of this Franchise, an amount equal to five percent
(5%) of Grantee’s Gross Revenues, which shall commence on the Effective Date of this
Franchise.
4.2. Payments
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Grantee’s Franchise Fee payments to the City shall be computed quarterly for the preceding
quarter. Each payment shall be due and payable no later than thirty (30) days after the end of
the preceding quarter, after which time interest will accrue. The quarters shall end
respectively on the last day of March, June, September and December.
4.3. Acceptance of Payment
No acceptance of any payment shall be construed as an accord by the City that the amount
paid is, in fact, the correct amount, nor shall any acceptance of payments be construed as a
release of any claim the City may have for further or additional sums payable or for the
performance of any other obligation of Grantee.
4.4. Franchise Fee Reports
Each payment shall be accompanied by a written report to the City, verified by an authorized
representative of Grantee, containing an accurate statement in summarized form which
includes a breakdown by category of Grantee’s Gross Revenues and the computation of the
payment amount.
4.5. Audits
A. Upon forty-five (45) days prior written notice, the City shall have the right to conduct an
annual independent audit of Grantee’s records necessarily related to the enforcement of
this Franchise and to re-compute any amounts determined to be payable under this
Franchise.
1. If Grantee cooperates in making all relevant records available to the City, the City
will attempt to complete each audit within six (6) months, and the audit period shall
be no greater than the previous three (3) years, unless the City has information
relating to previous years beyond the three (3) years which raises doubt as to the
accuracy of payments made under this or previous franchises, in which case an
additional three (3) years may be audited.
2. Any undisputed amounts due to the City as a result of the audit shall be paid within
sixty (60) days following written notice to the Grantee by the City, which notice shall
include a copy of the audit findings.
3. If the audit shows that Franchise Fees have been underpaid by five percent (5%) or
more in any calendar year, Grantee shall pay for the cost of the audit up to five
thousand dollars ($5,000) per year being audited for a maximum of 3 years.
B. If Grantee disputes all or part of the audit findings, then the parties shall meet in an
attempt to resolve the matter. If the parties are unable to resolve the matter, then either of
the parties may refer that matter to non-binding arbitration. Each party shall bear one-
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half of the costs and expenses of the arbitration proceedings. The decision of the
arbitrator(s) shall be subject to judicial review at the request of either party.
4.6. Late Payments
In the event any payment due the City is not timely made, Grantee shall pay, in addition to
the amount due, interest at the rate of twelve percent (12%) per annum from the payment due
date until the City receives the payment.
4.7. Underpayments
If a Franchise Fee underpayment is discovered as the result of an audit, Grantee shall pay, in
addition to the amount due, interest at the rate of twelve percent (12%) per annum calculated
from the date the underpayment was originally due until the date the City receives the
payment.
4.8. Maximum Franchise Fees
A. The parties acknowledge that, at present, applicable federal law limits the City to
collecting a franchise fee of five percent (5%) of Gross Revenues in a 12-month period.
B. In the event that at any time throughout the term of this Franchise, the City is authorized
to collect an amount in excess of five percent (5%) of Grantee’s Gross Revenues and the
City elects to do so, then this Franchise shall be amended by the parties consistent with
such change provided however that all other Cable Operators within the Franchise Area
are treated similarly.
C. In the event that at any time throughout the term of this Franchise, the City may only
collect an amount which is less than five percent (5%) of Grantee's Gross Revenues for
franchise fees due to a change in federal law, then this Franchise shall be amended by the
parties consistent with such change to provide for such lesser percentage.
4.9. Additional Commitments Not Franchise Fees
A. No term or condition in this Franchise shall in any way modify or affect Grantee’s
obligation to pay in full the Franchise Fee percentage listed in this Franchise. Although
the total sum of Franchise Fee payments and additional Access capital contribution
commitments set forth elsewhere in this Franchise may total more than five percent (5%)
of Grantee’s Gross Revenues in any 12-month period, Grantee agrees that the additional
Access capital contribution commitments are excluded from the definition of Franchise
Fee herein and are not Franchise Fees, nor are they to be offset or credited against any
Franchise Fee payments due to the City, nor do they represent an increase in Franchise
Fees to be passed through to Subscribers.
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B. Additionally, any security fund, performance bond or letter of credit shall not be offset
against Franchise Fees. Furthermore, the City and Grantee agree that any utility tax,
business and occupation tax or similar generally applicable tax or fee shall be in addition
to any Franchise Fees required herein and there shall be no offset against Franchise Fees
subject to applicable law.
C. If Grantee elects to offset certain non-cash commitments or initiatives against the
Franchise Fee in accordance with applicable law, Grantee will provide the City ninety
(90) days’ advance written notice, to include a detailed schedule of the amount it intends
to offset, and the cost basis for each schedule item. The City will have eighty (80) days
from receipt of Grantee’s notice to respond. The City reserves the right to terminate
Grantee’s provision of any non-cash commitments or initiatives.
4.10. Payment on Termination
A. If this Franchise is lawfully terminated, the Grantee shall file with the City within ninety
(90) days of the date of the termination, a financial statement, prepared by a certified
public accountant, or representative of the Grantee’s Controller or Chief Financial
Officer, showing the Gross Revenues received by the Grantee since the end of the
previous fiscal year.
B. Within thirty (30) days of the filing of the statement with the City, Grantee shall pay any
unpaid Franchise Fee amounts as indicated.
C. If the Grantee fails to pay its remaining financial obligations as required in this Franchise,
the City may satisfy the same by utilizing the funds from any security provided by the
Grantee.
4.11. Tax Liability
The Franchise Fees shall be in addition to any and all taxes or other levies or assessments
which are now or hereafter required to be paid by businesses in general by any law of the
City, the State or the United States including, without limitation, sales, use, utility,
occupation and other taxes, business license fees or other payments.
4.12. Bundling of Cable and Non-Cable Services
In no event will the Grantee unlawfully evade or reduce applicable Franchise Fee payments
required to be made to the City due to discounted bundled services. Customer billing shall be
itemized by service(s), and Grantee shall comply with all applicable laws regarding rates for
Cable Services and all applicable laws covering issues of cross subsidization.
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SECTION 5: ADMINISTRATION AND REGULATION
5.1. Authority
The City shall be vested with the power and right to administer and enforce the requirements
of this Franchise and the regulations and requirements of applicable law, including the Cable
Act, or to delegate that power and right, or any part thereof, to the extent permitted under
law, to any agent in the sole discretion of the City.
5.2. Rate Regulation
All rates, fees, charges, deposits and associated terms and conditions to be imposed by the
Grantee or any affiliated Person for any Cable Service as of the effective date shall be in
accordance with applicable law.
5.3. Low Income Discount
As long as the Grantee offers Basic Service, the Grantee intends to offer a discount to those
individuals who are low income (according to applicable federal guidelines) and either
permanently disabled or 65 years of age or older and who are the legal owners or tenants of
the Dwelling Unit. Such discounts will consist of thirty percent (30%) off of Basic Service
or the Basic Service portion of digital service packages when not discounted by inclusion in
other promotional or programming package rates at which time the promotional or
programming package rate will apply.
The City acknowledges that discounted services reflect a voluntary initiative on the part of
Grantee, and is not a requirement of this franchise. Subject to applicable law, should
Grantee elect to discontinue the low income discount, Grantee shall first provide the City
with ninety (90) days’ prior notice.
5.4. Performance Evaluations
A. Upon thirty (30) days written notification, the City may hold performance evaluation
sessions, no more than once every twelve months, whenever necessary to ensure proper
performance of the provisions of this Franchise.
B. All evaluation sessions shall be open to the public.
C. Topics which may be discussed at any evaluation session include, but are not limited to,
construction issues, Cable Service rate structures, Franchise Fee payments, liquidated
damages, free or discounted Cable Service, application of new technologies, Cable
System performance, Cable Services currently provided and programming offered, future
plans of Grantee for new services or programs, Subscriber Complaints, privacy,
modifications to this Franchise, judicial and FCC rulings, line extension policies and the
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City’s or Grantee’s rules; provided that nothing in this subsection shall be construed as
requiring the renegotiation of this Franchise.
D. During evaluations under this subsection, Grantee shall fully cooperate with the City and
shall provide such information and documents as the City may reasonably require to
perform the evaluation.
5.5. Leased Access Channel Rates
Grantee shall offer Leased Access Channel capacity on such terms and conditions and rates
as may be negotiated with each lessee, subject to the requirements of Section 612 of the
Cable Act. Upon request, Grantee shall provide a complete schedule of current rates and
charges for any and all Leased Access Channels or portions of such Channels provided by
Grantee.
5.6. Late Fees
For purposes of this subsection, any assessment, charge, cost, fee or sum, however
characterized, that Grantee imposes upon a Subscriber solely for late payment of a bill is a
late fee and changes in late fee rates shall be noticed to the City and applied in accordance
with applicable law.
SECTION 6: INDEMNIFICATION AND INSURANCE REQUIREMENTS
6.1. Indemnification
A. Indemnity: Grantee agrees to indemnify, defend and hold harmless the City, its elected
officials, officers, authorized agents, boards, volunteers and employees, acting in official
capacity, from and against any liability, damages or claims, costs, expenses, settlements
or judgments arising out of, or resulting from the granting of this Franchise or Grantee’s
activities, any casualty or accident to Person or property that occurs as a result of any
construction, excavation, operation, maintenance, reconstruction, relocation, or any other
act or omission done pursuant to the terms of this Franchise, provided that the City shall
give Grantee timely written notice of its obligation to indemnify the City.
Notwithstanding the foregoing, Grantee shall not indemnify the City to the extent that
any damages, liability or claims resulting from the willful misconduct, concurrent
negligence of the City, its officers, authorized agents, or employees, attorneys,
consultants, volunteers, or independent contractors for which the City is legally
responsible, or for any activity or function conducted by any Person other than Grantee in
connection with PEG Access and/or Emergency Alert System.
B. Indemnification for Relocation: Grantee shall indemnify, defend and hold the City, its
elected officials, officers, authorized agents, boards, volunteers, and employees harmless
for any damages, claims, additional costs, or expenses payable by the City related to,
arising out of, or resulting from Grantee’s failure to remove, adjust or relocate any of its
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facilities in the Rights-of-Way in a timely manner in accordance with any lawful
relocation required by the City; including, but not limited to, claims for delay, damages,
costs, and/or time asserted by any contractor performing public work for or on behalf of
the City.
C. Procedures and Defense: With respect to Grantee’s indemnity obligations set forth herein,
Grantee shall provide the defense of any claims or actions brought against the City or any
other indemnified party. Nothing herein shall be deemed to prevent the City from
cooperating with Grantee and participating in the defense of any litigation by its own
counsel at its own cost and expense; provided, however, that after consultation with the
City, Grantee shall have the right to defend, settle or compromise any claim or action
arising hereunder, and Grantee shall have the authority to decide the appropriateness and
the amount of any such settlement. However, Grantee may not agree to any settlement of
claims financially affecting the City without the City’s written approval that shall not be
unreasonably withheld.
D. Duty to Give Notice: The City shall give Grantee timely written notice of any claim or of
the commencement of any action, suit or other proceeding covered by the indemnity in
this Section. The City’s failure to so notify and request indemnification shall not relieve
Grantee of any liability that Grantee might have, except to the extent that such failure
prejudices Grantee’s ability to defend such claim or suit. In the event any such claim
arises, the City or any other indemnified party shall tender the defense thereof to Grantee
and Grantee shall have the obligation and duty to defend any claims arising thereunder,
and the City shall cooperate fully therein.
E. Separate Representation: If separate representation to fully protect the interests of both
parties is necessary, such as a conflict of interest between the City and the counsel
selected by Grantee to represent the City, Grantee shall pay for the City’s selected
counsel, from the date such separate representation is required forward, all reasonable
expenses incurred by the City in defending itself with regard to any action, suit, or
proceeding indemnified by Grantee.
F. Inspection: Inspection or acceptance by the City of any work performed by Grantee at the
time of completion of construction or maintenance projects shall not be grounds for
avoidance of any of these covenants of indemnification.
6.2. Grantee’s Further Responsibilities.
A. Grantee shall indemnify and hold harmless the City from any workers’ compensation
claims to which Grantee may become subject during the Term of this Franchise. It is
further specifically and expressly understood that, solely to the extent required to enforce
the indemnification provided per this Franchise, Grantee waives its immunity under
RCW Title 51; provided, however, the foregoing waiver shall not in any way preclude
Grantee from raising such immunity as a defense against any claim brought against
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Grantee by any of its employees or other third party. This waiver has been mutually
negotiated by the parties.
B. Grantee’s indemnification obligations shall include indemnifying the City for actions
brought by Grantee’s own employees and the employees of Grantee’s agents,
representatives, contractors, and subcontractors even though Grantee may be immune
under Title 51 RCW from direct suit brought by such employee.
6.3. Insurance Requirements
A. Grantee shall maintain in full force and effect at its own cost and expense each of the
following policies of insurance or equivalent self-insurance.
B. Grantee shall maintain:
1. Commercial General Liability (“CGL”) insurance written on an occurrence form at
least as broad as ISO CG 00 01, with Minimum Limits of Liability: $5,000,000.00 per
occurrence, $5,000,000.00 premises/operations, products/completed operations
aggregate, personal/advertising inquiry liability, contractual liability, and independent
contractors liability; and shall not exclude XCU/subsidence perils or any similar
perils;
2. Automobile Liability insurance at least as broad as ISO CA 00 01 including coverage
for owned, non-owned, leased, or hired vehicles, as applicable, with a minimum limit
of $5,000,000.00 each accident for bodily injury and property damage;
3. Workers’ Compensation insurance for the State as required by Title 51, Revised Code
of Washington, Industrial Insurance, $5,000,000.00 each accident/ each disease/
policy limit employers liability/Washington stop gap; and
4. Excess or Umbrella Liability: $5,000,000 each occurrence and $5,000,000 policy
limit.
C. Additional Insured: The City its officers, employees, authorized agents, and volunteers
shall be included as an additional insured under each of the insurance policies required in
this Section except Workers’ Compensation Insurance. Except for Workers’
Compensation and employer’s liability, all insurance policies required hereunder shall
provide or be endorsed so that the City is covered as, and have the rights of, an additional
insured with respect to liability arising out of activities performed by, or on behalf of,
Grantee under this Franchise or applicable law, or in the construction, operation, upgrade,
maintenance, repair, replacement or ownership of the Cable System. Grantee shall
provide to the City either (1) a copy of an endorsement covering the City as an Additional
Insured for each insurance policy required in this Section and providing that such
insurance shall apply as primary insurance on behalf of such Additional Insureds or (2) a
copy of the blanket additional insured clause from the policies. Receipt by the City of
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any certificate showing less coverage than required is not a waiver of Grantee’s
obligations to fulfill the requirements. Grantee’s insurance coverage shall be primary
insurance with respect to the City. Any insurance or self-insurance maintained by the
Additional Insureds shall be in excess of Grantee’s insurance and shall not contribute to
it. Grantee’s insurance shall apply separately to each insured against whom a claim is
made or lawsuit is brought, except with respect to the limits of the insurer’s liability.
D. Coverage: Each policy shall provide that the insurance shall not be canceled or
terminated so as to be out of compliance with these requirements without forty-five (45)
days written notice first provided to the City via mail, and thirty (30) days’ notice for
nonpayment of any premium. If the insurance is canceled or terminated so as to be out of
compliance with the requirements of this Franchise, Grantee shall provide a replacement
policy. Grantee agrees to maintain continuous uninterrupted insurance coverage, in at
least the amounts required, until all work required to be performed under the terms of this
Franchise is satisfactorily completed and, in the case of Commercial General Liability
Insurance, for at least one (1) year after expiration of this Franchise. Any failure of
Grantee to comply with the claim reporting provisions of the policy(ies) or any breach of
an insurance policy warranty shall not affect coverage afforded under the policy to
protect the City. However, if coverage is not afforded under these circumstances,
Grantee will indemnify the City for losses the City otherwise would have been covered
for as an additional insured.
E. Alternative Insurance: Grantee shall not cancel any required insurance policy without
obtaining alternative insurance in conformance with this Franchise. Each of the required
insurance policies shall be with insurers qualified to do business in the State of
Washington with a Best’s rating of no less than “A- VII.”
F. Verification of Coverage: In addition to the other requirements of this Section, Grantee
shall furnish the City with certificates of insurance reflecting at least the minimum
coverage and policy limits required hereunder. The certificates for each insurance policy
are to be on standard forms or such forms as are consistent with standard industry
practices.
G. Grantee’s policy shall not include any of the following endorsements, or their equivalent
endorsements or exclusions:
1. Contractual liability limitation (GCL Form 21 39 or equivalent),
2. Amendment of insured contract definition (CGL Form 24 26 or equivalent),
3. Limitation of coverage to designated premises or project (CGL Form 21 44 or
equivalent),
4. Any endorsement modifying or deleting the exception to the employer’s liability
exclusion,
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5. Any “Insured vs. Insured” or “cross-liability” exclusion with respect to additional
insureds, and
6. Any type of punitive, exemplary or multiplied damaged exclusion.
H. Evidence of insurance shall be in the form of a certificate of insure evidencing
compliance with these requirements.
6.4. Franchise Security
A. Grantee shall provide a performance bond, in a form acceptable to the City, in the amount
of One Hundred Fifty thousand dollars ($150,000.00) to ensure the faithful performance
of its responsibilities under this Franchise and applicable law. Grantee may be required
to obtain additional security, such as generally applicable construction bonds, in
accordance with the City’s permitting requirements. Grantee shall pay all premiums or
costs associated with maintaining the security, and shall keep the same in full force and
effect at all times and shall immediately replenish the bond upon foreclosure. Except as
expressly provided herein or as otherwise specified in the City’s construction permitting
requirements, the Grantee shall not be required to obtain or maintain other security as a
condition of being awarded the Franchise. Grantee shall not cancel the performance bond
without obtaining an alternative performance bond in conformance with this Franchise.
B. The security shall be subject to the approval of the City Engineer as to its adequacy under
the requirements of this Section.
C. 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, any
damages suffered by the 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.
D. The security required by this Section shall not be construed to limit 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 7: CUSTOMER SERVICE
7.1. Customer Service Standards
The City hereby adopts the customer service standards set forth in Part 76, §76.309 of the
FCC’s rules and regulations, as amended. The Grantee shall comply in all respects with the
customer service requirements established by the FCC.
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7.2. Subscriber Privacy
Grantee shall comply with privacy rights of Subscribers in accordance with federal, State,
and local laws.
SECTION 8: REPORTS AND RECORDS
8.1. Open Records
A. The City shall have access to, and the right to inspect, any books and records of Grantee
and its Affiliates which are reasonably necessary to monitor and enforce Grantee’s
compliance with the provisions of this Franchise at Grantee’s regional business office,
during normal business hours, and without unreasonably interfering with Grantee’s
business operations.
B. The City may, in writing, request copies of any such records or books that are not
identified as proprietary or confidential, and Grantee shall provide such copies within
thirty (30) days of the transmittal of such request.
1. One copy of all reports and records required under this or any other Section shall be
furnished to the City at the sole expense of Grantee.
2. If the requested books and records are too voluminous, or identified as proprietary
and confidential, or for security reasons cannot be copied or removed, then the City
shall inspect them at Grantee’s regional office.
8.2. Confidentiality
A. Grantee shall not be required to disclose information to third parties that it reasonably
deems to be proprietary or confidential in nature, nor disclose books and records of any
affiliate of Grantee that is not providing Cable Service in the Franchise Area.
B. The City agrees to keep confidential any proprietary or confidential books or records of
Grantee to the extent permitted by law; provided that Grantee shall be responsible for
clearly and conspicuously identifying the records as confidential or proprietary, and shall
provide a brief written explanation as to why such information is confidential or
proprietary and how it may be treated as such under State or federal law.
C. Grantee shall not be required to provide Customer information in violation of Section 631
of the Cable Act or any other applicable federal or State privacy law.
1. For purposes of this subsection, the terms “proprietary or confidential” include, but
are not limited to, information relating to the Cable System design, as-built
documents, fiber optic cable locations and maps, customer lists, marketing plans,
financial information unrelated to the calculation of Franchise Fees or rates pursuant
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to FCC rules, or other information that is reasonably determined by Grantee to be
competitively sensitive.
2. If the City receives a demand from any Person for disclosure of any information
designated by Grantee as proprietary or confidential, the City shall, so far as
consistent with applicable law, advise Grantee and provide Grantee with a copy of
any written request by the Person demanding access to such information within five
(5) business days.
D. While it is not a legal obligation, the City, as a courtesy, will allow Grantee up to ten (10)
business days to obtain and serve the City with a court injunction to prevent the City from
releasing the Documents.
1. If Grantee fails to obtain a Court order and serve the City within the ten (10) business
days, the City may release the Documents.
2. The City will not assert an exemption from disclosure on Grantee’s behalf.
8.3. Maps and Records Required
Grantee shall make available to the City upon request:
1. A route map that depicts the general location of the Cable System facilities placed in the
Right-of-Ways. The route map shall identify Cable System facilities as aerial or
underground and is not required to depict cable types, number of cables, electronic
equipment, and service lines to individual Subscribers. The Grantee shall also provide,
if requested, an electronic format of the aerial/underground facilities in relation to a
Right-of-Way centerline reference to allow the City to add this information to City's
geographic information system program;
2. A copy of all FCC filings that relate to the operation of the Cable System in the
Franchise area; and
3. A list of Grantee’s Cable Services, rates, and Channel line-up.
8.4. Submittal of Documents
A. Upon written request, Grantee shall submit to the City a copy of any application,
notification, communication or document of any kind, submitted by Grantee or its
Affiliates to any federal, State or local courts, regulatory agencies and other
governmental bodies if such document directly relates to the operations of Grantee’s
Cable System within the Franchise Area.
B. Grantee shall submit such documents to the City no later than thirty (30) days after
receipt of the City’s request. Grantee shall not claim confidential, privileged or
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proprietary rights to such documents unless under federal, State, or local law such
documents have been treated as confidential or determined to be confidential by a court
of competent jurisdiction, or a federal or State agency.
8.5. Annual Reports
Upon request, thirty (30) days after the end of the first quarter, Grantee shall submit to the
City a written report containing the following information:
A. The most recently completed annual corporate report;
B. A Gross Revenue statement for the preceding fiscal year and all deductions and
computations for the period, reviewed by a certified public accountant, who may also be
the chief financial officer or controller of Grantee;
C. A summary of the previous years’ activities regarding the development of the Cable
System, including, but not limited to, homes passed, beginning and ending plant miles,
any technological changes occurring in the Cable System; and
D. An executive summary of Subscriber Complaints received in the previous year.
E. A description of planned construction, if any, for the current year.
SECTION 9: PROGRAMMING AND ACCESS
9.1. Broad Programming Categories
Grantee shall offer to all Subscribers a diversity of video programming services.
9.2. Parental Control Device
Upon request by any Subscriber, Grantee shall make available a parental control or lockout
device, trap or filter to enable a Subscriber to control access to both the audio and video
portions of any or all Channels. Grantee shall inform its Subscribers of the availability of the
lockout device at the time of their initial subscription and periodically thereafter. Such
devices, traps or filters will be provided at no charge to the Subscriber, unless otherwise
provided by federal law.
9.3. Access Channels
A. The Grantee shall provide to the City three (3) standard digital format PEG Channels for
Subscribers within the Franchise Area. The three PEG Channels shall include a
Government Access Channel currently being programmed by the City; the City’s
Educational Access Channel currently being programmed by the Puget Sound
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Educational Service; and the City’s Public Access Channel currently being programmed
by a designated access provider.
B. The City acknowledges that the Grantee’s Cable System provides additional benefits to
access programming needs beyond the requirements listed above. This is accomplished
through the inclusion of other regional access programming, including educational and
public access, within the regional channel line-up that services the Franchise Area. The
Grantee will endeavor to provide the Subscribers in the Franchise Area with the other
regional access channels so long as the programmers offer them for use on the Cable
System.
C. Simulcast High Definition Access Channel:
1. The Grantee agrees to simulcast the one (1) Government Access Channel in high-
definition (HD PEG Channel) format under the following conditions:
a. Upon the City’s request, the Grantee shall have twelve (12) months to activate the
simulcast HD PEG Channel.
b. The Grantee shall be responsible for all capital engineering costs associated with
fulfilling the request to activate the simulcast HD PEG Channels.
c. The City or any Designated Access Provider shall be responsible for acquiring all
equipment necessary to produce programming in HD.
d. Upon activation of the simulcast HD PEG Channel, Comcast shall own and
maintain the encoder equipment used to transmit the high-definition signal from
City Hall (the demarcation point).
e. The City shall provide the HD PEG Channel signal as specified by the Grantee’s
engineering standards, as amended by the Grantee from time to time because of
changes in technology.
2. The City acknowledges that the simulcast HD PEG Channel will be available only to
those Subscribers who elect to subscribe to Grantee’s high-definition Cable Service,
receive a high-definition set-top converter, and pay all fees associated therewith.
3. Grantee shall have sole discretion to determine the Channel placement of the
simulcast HD PEG Access Channel within its high-definition channel line-up.
9.4. Control and Connectivity of Access Channels
A. The City may authorize designated access providers to control, operate and manage the
use of any and all access facilities provided by Grantee under this Franchise, including,
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without limitation, the operation of Access Channels. The City or its designee may
formulate rules for the operation of the Access Channels, consistent with this Franchise.
B. Regarding the City’s and designated Access providers use of Access facilities and Access
Channels, Grantee shall fully cooperate with requests from the City, and provide all
necessary assistance related thereto.
C. As of the effective date of this Franchise, the Grantee maintains and shall continue to
maintain all existing fiber optic return line(s) to facilitate the City’s current Access
connectivity to Grantee’s Headend. If the City desires to relocate or expand the fiber
optic return line(s) to new location(s) over the term of this Franchise, upon one hundred
twenty (120) days written request by the City and at the City’s cost for Grantee’s
reasonable time and materials, the Grantee shall construct the requested new fiber optic
return line(s).
9.5. Location and Quality of Access Channels
A. All Access Channels provided to Subscribers under this Franchise shall be included by
Grantee as a part of the lowest Tier of service provided to all Subscribers in the Franchise
Areas or as otherwise provided by federal law. Grantee agrees to use reasonable efforts to
place the Access Channel in the same vicinity as other local government access channels.
B. The parties agree that it is the responsibility of the designated access provider(s) to
provide a quality PEG signal, to the Grantee at the point of demarcation, which meets or
exceeds the FCC technical standards. Notwithstanding the forgoing, the Grantee agrees
that it will deliver to subscribers a PEG signal of the same quality it receives from the
designated Access provider(s) without degradation and in accordance with the FCC
technical standards. There shall be no restriction on Grantee’s technology used to
deploy and deliver standard digital or high definition signals so long as the requirements
of the Franchise are otherwise met. FCC technical standards shall be used for all testing
and assessment of quality under this section.
C. The Grantee shall provide Headend and hub equipment and routine maintenance and
repair and replace, if necessary, any of Grantee’s equipment required to carry the Access
signal to and from the City’s and any other Access origination point and the Grantee’s
Headend and hubs for the Access Channels.
D. If Grantee makes a change in its Cable System and related equipment and facilities, or in
its signal delivery technology, which directly or indirectly affects the signal quality or
method or type of transmission of Access programming or services, Grantee shall take
necessary technical steps and provide necessary technical assistance, including the
acquisition of all necessary equipment and full training of access personnel, to ensure that
the capabilities of Access Channels and delivery of Access programming are not
diminished or adversely affected by such change. For example, live and taped
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programming must be cablecast with as good or better signal quality than existed prior to
such change.
E. Grantee shall provide as much notice as possible but not less than sixty (60) days advance
written notice to the City prior to any relocation of an Access Channels. In connection
with the movement of any of the City controlled Access Channels, Grantee shall provide
a bill message on subscriber’s bills.
9.6. Access Capital Contribution
A. Grantee shall collect and remit to the City, as support for any lawful capital PEG use,
thirty-five cents ($.35) per Subscriber per month, payable quarterly with Franchise Fees
as a “PEG Fee.” The PEG Fee shall not be treated as franchise fees for purposes of 47
U.S.C. § 542 or any other purpose, and shall at no time be offset or deducted from
franchise fee payments made to the City under this Franchise or applicable law.
B. The City shall have discretion to allocate the PEG Fee in accordance with applicable law.
To the extent the City makes access capital investments using City funds prior to
receiving the monthly PEG Fee funds, the City is entitled to apply the subsequent
monthly PEG Fee payments from Grantee toward such City capital investments. The
City agrees that the PEG Fee may be treated as external costs under applicable federal
law.
C. Upon the Grantee’s written request, the City shall submit a report no more frequently
than annually on the use of the City specific Access Channels and capital PEG Fee. The
City shall submit a report to the Grantee within one hundred twenty (120) days of a
written request. The Grantee may review the records of the City regarding the use of the
PEG Fee.
D. The City shall dedicate the time, personnel and other resources needed to operate the
Access Channels designated herein.
SECTION 10: GENERAL RIGHT-OF-WAY USE AND CONSTRUCTION
10.1. Right to Construct
Subject to the other provisions of this Franchise, and applicable law, Grantee may perform all
construction in the Right-of-Ways for any facility needed for the maintenance, operation or
extension of Grantee's Cable System.
10.2. General Standard
All work authorized and required hereunder shall be done in a safe, thorough and workmanlike
manner. All equipment shall be durable and installed and maintained in accordance with good
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engineering practices and comply with applicable law. Grantee shall on a daily basis ensure
cleanup of all workplaces whether work is performed by Grantee or Grantee’s agents.
10.3. Repair and Emergency Work
A. 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 at 253.931.3010 during normal business hours and 253.876.1985
during non-business hours as promptly as possible. Such notification shall include the
Grantee’s emergency contact phone number for the corresponding response activity.
B. During emergencies, except those involving imminent danger to the public health, safety or
welfare, the City shall provide notice to Grantee, at a designated emergency response
contact number, to allow Grantee the opportunity to respond and rectify the emergency
without disrupting Cable Service. If after providing notice, there is no immediate response,
the City may move Grantee's facilities.
C. Grantee shall apply for appropriate permits for emergency or repair work within forty-eight
(48) hours after the commencement of said work.
10.4. One Call
The Grantee shall, at its own expense, participate in the call before you dig program required
under State law.
10.5. Permits Required
A. Prior to doing any work in the Right-of-Way or other public property (with the exception of
installations or general maintenance that involve no construction and with no disruption to
the use of the Right-of-Ways or other public property), Grantee working directly or through
a contractor, subcontractor, Affiliated Entity, or other Person shall apply for, and obtain, in
advance, appropriate construction permits from the City.
B. As part of the permitting process, the City may impose such conditions as are necessary for
protecting the public or any and all facilities with in such Right-of-Ways, and for providing
for the proper restoration of such Right-of-Ways and to protect the public and the continuity
of non-motorized or vehicular traffic. Grantee shall pay all generally applicable fees for the
requisite City construction permits.
C. Grantee agrees to comply with any required permit conditions and/or licenses.
10.6. Compliance with Applicable Codes
A. City Codes: Grantee shall comply with all generally applicable City codes regarding the
construction and use of the Right-of-Ways.
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B. Regulations and Safety Codes: Grantee shall comply with the National Electric Code,
National Electrical Safety Code and Occupational Safety and Health Administration
(OSHA) standards.
10.7. Least Interference
Work in the Right-of-Ways, or on other public property, shall be done in a manner that causes
the least interference with the rights and reasonable convenience of property owners and City
residents. Grantee's Cable System shall be constructed and maintained in such a manner as not
to interfere with sewers, water pipes or any other property of the City, or with any other pipes,
wires, conduits, pedestals, structures or other facilities that may have been laid in the Right-of-
Way by, or under, the City's authority. In the event of such interference, the City may require
the removal or relocation of Grantee's lines, cables, equipment and other appurtenances from the
property in question at Grantee's expense.
10.8. Undergrounding of Cable
A. In all Areas of the City where all other utility lines are placed underground, Grantee shall
construct and install its Facilities underground; and Grantee may only place Facilities
aerially as allowed by ACC 13.32A as it currently exists or as amended.
B. In the event that the provisions of this subsection conflict with the provisions of ACC
13.32A, the provisions of ACC 13.32A shall govern this Franchise.
10.9. Restoration of Property
A. If in connection with the construction, operation, maintenance, upgrade, repair or
replacement of the Cable System, the Grantee disturbs, alters, or damages any public
property, the Grantee agrees that it shall at its own cost and expense pay for any damage and
replace and restore any such property to the satisfaction of the City and in compliance with
the permit requirements.
B. Grantee shall warrant any restoration work performed by or for Grantee in the Right-of-Way
or on other public property as required by the Construction permit and applicable municipal
code or any generally applicable ordinance or resolution of the City.
C. If restoration is not satisfactorily and timely performed by the Grantee, the City may, after
prior notice to the Grantee, or without notice where the disturbance or damage may create a
risk to public health or safety, cause the repairs to be made and recover all direct and indirect
cost of those repairs from the Grantee. Within thirty (30) days of receipt of an itemized list
of those costs, including the costs of labor, materials and equipment, the Grantee shall pay
the City.
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10.10. Movement of Cable System Facilities
A. Relocation at Request of City. Upon thirty (30) days prior written notice to Grantee, City
shall have the right to require Grantee to relocate any part of the Cable System within the
Right-of-Way when the public convenience, public interest, or safety, health or welfare of
the public requires such change, and the expense thereof shall be paid by Grantee.
1. In the event of any capital improvement project exceeding $500,000 in expenditures by
the City which requires the removal, replacement, modification or disconnection of
Grantee's facilities or equipment, the City shall provide at least sixty (60) days written
notice to Grantee.
2. Following notice by the City, Grantee shall relocate, remove, replace, modify or
disconnect any of its facilities or equipment within any Right-of-Way, or on any other
property of the City.
3. Should Grantee fail to remove or relocate any such facilities by the date established by
the City, the City may effect such removal or relocation, and the expense thereof shall
be paid by Grantee, including all costs and expenses incurred by the City due to
Grantee's delay.
4. If the City requires Grantee to relocate its facilities located within the Right-of-Way, the
City may provide Grantee with an alternate location within the Right-of-Way.
5. If public funds are available to any Person using such Right-of-Way for the purpose of
defraying the cost of any of the foregoing, the Grantee may make application for such
funds.
B. In the case of relocation projects where the City hires and designates an independent
contractor to accommodate and coordinate the conversion of overhead utilities within a City
capital improvement project, if the Grantee decides to participate in the joint trench
opportunity then the Grantee shall enter into a separate agreement with the City that, at a
minimum, requires the Grantee to pay all design, permitting, administration, coordination,
and construction costs incurred by the City associated with the proportionate share of the
joint trench utilized by the Grantee and the level of effort required to design, permit,
administer, coordinate, and construct the joint utility trench to accommodate the Grantee’s
facilities.
10.11. Tree Trimming
The Grantee shall have the authority to conduct pruning and trimming for access to Cable
System facilities in the Right-of-Way. All such trimming shall be done at the Grantee's sole
cost and expense. The Grantee shall be responsible for any damage caused by such trimming.
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10.12. Rights-of-Way Vacation
If any street, or portion thereof, used by Grantee is vacated by the City during the term of this
Franchise, unless the City Council specifically reserves to Grantee the right to continue its
installation in the vacated street, Grantee shall, without delay or expense to the City, remove its
Facilities from such street.
10.13. Inspection of Facilities
Upon reasonable notice, the City may inspect any of Grantee’s Facilities or equipment within
the Rights-of-Way and on other public property. If an unsafe condition is found to exist, the
City, in addition to taking any other action permitted under applicable law, may order
Grantee to make the necessary repairs and alterations specified therein forthwith to correct
the unsafe condition by a time the City establishes. The City has the right to inspect, repair
and correct the unsafe condition if Grantee fails to do so, and to reasonably charge Grantee
therefor.
10.14. Hazardous Substances
A. Grantee shall comply with all applicable State and federal laws, statutes, regulations, and
orders concerning hazardous substances, as described in RCW 70.105D.020, relating to the
Cable System in the City’s rights-of-way.
B. Grantee shall maintain and inspect the Facilities located in the City’s rights-of-way and
immediately inform the City of any release of hazardous substances.
C. Upon reasonable notice to Grantee, the City may inspect the Facilities in the City’s rights-
of-way to determine if any release of hazardous substances has occurred, or may occur,
from, or related to, the Facilities.
D. In removing or modifying the Facilities as provided in this Franchise, Grantee shall also
remove all residue of hazardous substances related thereto; provided, however, that if it is
determined that the Facilities did not cause the release of hazardous substances, Grantee
shall have no duty to remove such substances.
E. Grantee agrees to forever indemnify the City against any claims, costs, and expenses of any
kind, whether direct or indirect, incurred by the City arising out of a release of hazardous
substances arising from, connected to, or incident to the Facilities in the City’s rights-of-
way.
10.15. Reservation of City Use of Rights-of-Way
A. Grantee agrees that its use of the Franchise Area shall, at all times except in instances of
prior right, be subordinate and subject to the City’s needs for municipal infrastructure and
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access to the Franchise Area and the public’s right to travel, except as may be otherwise
required by law.
B. Should Grantee fail to remove, adjust, or relocate its Facilities by the date established by the
City Engineer, or his/her designee, and provided in writing to Grantee, the City may effect
such removal, adjustment, or relocation and recover the cost thereof from Grantee, including
all costs and expenses incurred by the City due to Grantee’s delay.
C. Grantee agrees to coordinate its activities with the City and all other utilities located within
the public rights-of-way within which Grantee is undertaking its activity.
D. Grantee shall not construct the Cable System in any manner that requires any Subscriber to
install any cable, wire, conduits, or other facilities, under or over a right-of-way.
E. The City expressly reserves the right to prescribe how and where Grantee Facilities shall be
installed within the public rights-of-way and may, from time to time, pursuant to applicable
sections of this Franchise, require the removal, and/or replacement thereof in the public
interest and safety at the expense of Grantee.
10.16. Work of Contractors, Subcontractors, and Affiliated Entities
A. Grantee’s contractors, subcontractors, and affiliated entities performing work benefitting
Grantee shall be licensed and bonded according to the City’s, and the State’s, regulations
and requirements.
B. Work by contractors, subcontractors, and affiliated entities is subject to the same
restrictions, limitations, and conditions as if the work were performed by Grantee.
C. Grantee shall be responsible for all work performed by its contractors, subcontractors, or
affiliated entities, and other Persons performing work on its behalf as if the work were
performed by it, and shall ensure that all such work is performed in compliance with this
Franchise and other applicable laws, and shall be, jointly and severally, liable for all
damages and correcting all damage caused by them.
D. It is Grantee’s responsibility to ensure that contractors, subcontractors, affiliated entities, or
other Persons performing work on Grantee’s behalf are familiar with the requirements of
this Franchise and other applicable laws governing the work performed by them.
E. Grantee agrees to inspect its contractors and subcontractors on a regular basis and ensure
that both its personnel, contractors, and subcontractors provide clean-up of all workplaces
and adhere to industry safety as well as local safety standards.
10.17. Discontinuing Use of Facilities
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A. Whenever Grantee intends to discontinue using any Facility within the City’s Rights-of-
Way, Grantee shall submit for the approval of the authorizing City department, a complete
description of the Facility and the date on which Grantee intends to discontinue using the
Facility.
B. Grantee may remove the Facility or request that the City permit it to remain in place.
C. Notwithstanding Grantee’s request that any such Facility remain in place, the City may
require Grantee to remove the Facility from the City’s Rights-of-Way or modify or maintain
the Facility to protect the public health and safety or otherwise serve the public interest.
D. The City may require Grantee to perform a combination of modification, maintenance,
and/or removal of the Facility.
E. Until such time as Grantee removes or modifies the Facility as directed by the City, or until
the rights to, and responsibility for, the Facility are accepted by another Person having
authority to construct and maintain such Facility, Grantee shall be responsible for all
necessary repairs and relocations of the Facility, as well as maintenance of the City’s Rights-
of-Way, in the same manner and degree as if the Facility were in active use, and Grantee
shall retain all liability for such Facility.
10.18. Construction and Use of Poles
Grantee may negotiate and enter into pole attachment agreements with utilities maintaining
poles in the Franchise Area in accordance with ACC 13.32(A) and on terms acceptable to
Grantee and the affected utilities.
SECTION 11: CABLE SYSTEM ARCHITECTURE AND TECHNICAL STANDARDS
11.1. Subscriber Network
A. Cable System Functionality: As of the Effective Date of this Franchise, Grantee provides
its Cable Service utilizing a two-way hybrid fiber-coaxial Cable System architecture that
deploys from Grantee’s Headend to nodes throughout the City where the signal is
converted to radio frequency and runs along the coaxial portion of the Cable System to
Subscribers.
Over the term of this Franchise, Grantee shall maintain the Cable System in a manner
consistent with, or in excess of, a typical 750 MHz Cable System.
B. Grantee will take prompt corrective action if it finds that any facilities or equipment on
the Cable System are not operating as expected, or if it finds that facilities and equipment
do not comply with the requirements of this Franchise or applicable law.
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11.2. Standby Power
Grantee shall provide standby power generating capacity at the Cable System Headend
capable of providing at least twelve (12) hours of emergency operation. Grantee shall
maintain standby power supplies that supply back-up power for at least two (2) hours
duration throughout the distribution networks and four (4) hours duration at all nodes and
hubs.
11.3. Emergency Alert
Grantee shall provide an operating Emergency Alert System in accordance with and at the
time required by the provisions of State and federal laws, including FCC regulations.
11.4. Technical Performance
The technical performance of the Cable System shall meet or exceed all applicable federal
technical standards, as they may be amended from time to time, regardless of the
transmission technology utilized.
11.5. Cable System Performance Testing
A. Grantee shall perform on its Cable System all technical tests presently or hereafter
required by the FCC.
B. Upon request, all required FCC technical performance tests may be witnessed by
representatives of the City.
C. Grantee shall maintain written records of its Cable System tests performed by or for
Grantee. Copies of such test results will be provided to the City upon request.
D. Grantee shall promptly take such corrective measures as are necessary to correct any
performance deficiencies fully and to prevent their reoccurrence as far as possible.
Grantee’s failure to correct deficiencies identified through this testing process shall be a
material violation of this Franchise. Sites shall be re-tested following correction.
11.6. Additional Tests
A. In addition to the above, and to the extent applicable, where there exists other evidence
which in the judgment of the City casts doubt upon the reliability or technical quality of
the Cable System, after giving Grantee thirty (30) days prior written notice and a
reasonable opportunity to cure, the City may require Grantee to conduct additional tests
and analyze and report on the performance of the Cable System in the area having service
problems.
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B. Grantee shall fully cooperate with the City in performing such testing and shall prepare
the results and a report if requested, within thirty (30) days after such testing. This report
shall include the following information:
1. The nature of the evidence which precipitated the special tests;
2. The Cable System component tested;
3. The equipment used and procedures employed in testing;
4. The results of the testing and Cable System evaluation, including a description of any
problem(s) found;
5. The method, if any, in which such problem was resolved; and
6. Any other information pertinent to said tests and analysis, which may be required.
SECTION 12: SERVICE EXTENSION AND SERVICE TO PUBLIC BUILDINGS
12.1. Service Availability
A. Service Connections: Grantee shall provide Cable Service within seven (7) business days
of a request by any potential residential subscriber within the City provided, however,
that service can be installed via a standard installation, as described below. For purposes
of this subsection, a request shall be deemed made on the date of signing a service
agreement or receipt by Grantee of a verified verbal request. Grantee shall provide such
service with no line extension charge, except as specifically authorized below, at a
nondiscriminatory installation charge for a standard installation, consisting of a one
hundred fifty (150) foot service drop from the cable plant in the Right-of-Way to the
exterior demarcation point for residential subscribers, with additional charges for non-
standard installations computed according to a nondiscriminatory methodology for such
installations.
B. For non-standard installations that cannot be accommodated without an extension of
Grantee’s Cable System, the Grantee may elect to provide Cable Service to the requesting
resident(s) for the line extension on a time and material cost basis.
C. Distribution Line Extension Charges: The Grantee must make Cable Service available to
every residential Dwelling Unit within the Franchise Area where the minimum density is
at least thirty (30) Dwelling Units per strand mile in areas served by overhead facilities
and sixty (60) Dwelling Units per mile in areas served by underground facilities. The
Grantee may elect to provide Cable Service to areas not meeting the above density
standard and charge the requesting resident(s) for the line extension on a time and
material cost basis.
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D. Grantee shall provide Cable Service to Multiple Dwelling Units in accordance with this
Franchise and applicable laws.
E. Annexation: In the event of annexation by the City, or as development occurs, any new
territory shall become part of the territory for which this Franchise is granted.
1. The Grantee shall construct and extend its Cable System so that it is able to provide
Cable Service to any areas which may be acquired, developed or annexed by the City
during the Franchise term, or otherwise added to the City’s jurisdiction during the
Franchise term, or any extension thereof.
2. Access to Cable Service shall not be denied to any group of potential cable
Subscribers because of the income of the residents of the area in which such group
resides.
3. The Grantee shall be given a reasonable period of time to construct and activate cable
plant to service annexed or newly developed areas but in no event to exceed twelve
(12) months of Council Approval of the annexation, subject to the provisions on line
extension herein.
12.2. Permission of Property Owner or Tenant for Installation, and Treatment of Property
A. If the Facilities pass over or under private or publicly owned property, Grantee is solely
responsible for obtaining all necessary permission from the property owner.
B. Grantee shall not install or attach any of its Facilities to any property without first
securing the written permission of the owner or tenant of any property involved, or of
such other person who has the right to approve or disapprove the attachment (authorized
party), except if there is an existing utility easement; and in the event that such
permission or easement is later revoked, Grantee at the request of the authorized party
shall promptly remove any of its facilities and promptly restore the property to its original
condition at Grantee’s expense.
C. Grantee shall perform all such installations and removals in compliance with state and
local law and shall be responsible for any damage to residences or other property caused
by the installation or the removal.
12.3. Connection of City and Other Public Buildings
A. Upon request through the designated City representative, the Grantee will make available
without charge, as long as it is economically feasible, a standard installation and a
minimum of one outlet of Basic Cable Services to City administrative buildings as
designated by the City (whether they are owned or leased), and fire station(s), police
station(s), libraries, access facilities, and K-12 public School(s).
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B. Grantee may additionally volunteer to provide a digital level of service, in addition to the
Basic Cable Service, that provides access to national 24-hour news channels; provided
that if the installation to such building does exceed one hundred twenty-five (125) aerial
feet, the City or other agency agrees to pay the incremental cost of such installation in
excess of one hundred twenty-five (125) feet or a necessary distribution line extension of
the Cable System, including the cost of such excess labor and materials. The recipient of
the service will secure any necessary right of entry.
C. The Cable Service will not be used for commercial purposes, and the outlets will not be
located in jail cells or areas open to the public, except for one outlet to be located in a
public lobby in City buildings that will be used by the public for viewing City selected
programming.
D. The City will take reasonable precautions to prevent any use of the Grantee's Cable
System in any manner that results in inappropriate use, loss or damage to the Cable
System.
E. If additional outlets of Cable Service are needed in such buildings, only the Grantee is
authorized to complete the Cable Service expansion to support the outlet installation(s)
and the building occupant will pay the standard installation fees. No other Cable Service
fees shall be owed in connection with additional outlets.
F. The City acknowledges that complimentary services reflect a voluntary initiative on the
part of Grantee. Grantee does not waive any rights it may have regarding complimentary
services under federal law or regulation. Subject to applicable law, should Grantee elect
to offset governmental complimentary services against Franchise Fees, Grantee shall first
provide the City with ninety (90) days’ prior notice.
SECTION 13: FRANCHISE VIOLATIONS
13.1. Non-Material Franchise Violations
A. Notice of Non-Material Violation: If the City believes that Grantee has failed to perform
any non-material obligation under this Franchise, the City shall notify Grantee in writing,
stating with reasonable specificity the nature of the alleged default, and Grantee shall
have thirty (30) days from the receipt of such notice to:
1. Respond to the City, contesting the City’s assertion that a default has occurred, and
request a meeting in accordance with subsection B, below; or
2. Cure the default; or
3. Notify the City that Grantee cannot cure the default within thirty (30) days, because
of the nature of the default. In the event the default cannot be cured within thirty (30)
days, Grantee shall:
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a. Notify the City in writing and with specificity the exact steps that will be taken
and the projected completion date of each step necessary to promptly cure the
default; and
b. Request a meeting pursuant to subsection B below for the City to determine
whether additional time beyond the thirty (30) days specified above is indeed
needed, and whether Grantee’s proposed completion schedule and steps are
reasonable.
B. Meet and Confer: If Grantee does not cure the alleged default within the cure period
stated above, or denies the default, or the City orders a meeting, the City shall set a
meeting, not less than fifteen (15) business days after Grantee’s receipt of written notice
from the City, to investigate the existence of the alleged default or the timing and
procedure required to cure a default, and provide Grantee with an opportunity to be heard
and to present evidence in its defense.
C. Notice to Correct: If, after the meeting, the City determines that a default exists, Grantee
and the City may agree on a plan and schedule to cure the default, or the City shall order
Grantee to correct or remedy the default within thirty (30) days, or within such additional
time as the City determines.
D. Determination of Default: The determination as to whether a non-material violation under
this Franchise has occurred shall be within the discretion of the City, must be made in
writing, and based upon findings that include Grantee’s submissions; provided that any
such determination may be subject to appeal to the City’s hearing examiner or review by
an arbitrator as described in Section 16.1.
E. Enforcement: In the event Grantee does not cure the default within the time agreed upon
by the Parties or ordered by the City and to the City’s reasonable satisfaction, the City
may r ecommend revocation of this Franchise pursuant to the procedures in subsection
13.2 or commence the arbitration procedures in section 16.1.
13.2. Material Franchise Violations
A. The City shall notify the Grantee, in writing, of any alleged failure to comply with a
material provision of this Franchise, which notice shall specify the alleged failure with
reasonable particularity. The Grantee shall have thirty (30) days subsequent to receipt of
the notice in which to:
1. respond to the City, contesting the City's assertion that a default has occurred, and
requesting a meeting in accordance with subsection (B), below; or
2. cure the default; or
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3. notify the City that Grantee cannot cure the default within the thirty (30) days,
because of the nature of the default.
4. In the event the default cannot be cured within thirty (30) days, Grantee shall
promptly take all reasonable steps to cure the default and notify the City, in writing
and in detail, as to the exact steps that will be taken and the projected completion
date. In such case, the City may set a meeting in accordance with subsection (B)
below to determine whether additional time beyond the thirty (30) days specified
above is indeed needed, and whether Grantee's proposed completion schedule and
steps are reasonable.
B. If Grantee does not cure the alleged material default within the cure period stated above,
or by the projected completion date under this section, or denies the default and requests
a meeting in accordance with this section, or the City orders a meeting in accordance with
this section, the City shall set a meeting to investigate said issues and the existence of the
alleged default. The City shall notify Grantee of the meeting, in writing, and such
meeting shall take place no less than thirty (30) days after Grantee's receipt of notice of
the meeting. At the meeting, Grantee shall be provided an opportunity to be heard and to
present evidence in its defense.
C. If, after the meeting, the City determines that a default exists, Grantee and the City may
agree on a plan and schedule to cure the default. Absent such agreement, the City shall
order Grantee to correct or remedy the default or violation within thirty 30) days or
within such other reasonable timeframe as the City shall determine. In the event Grantee
does not cure the default within such time to the City's reasonable satisfaction, the City
may:
1. recommend the revocation of this Franchise pursuant to the procedures in this
franchise; or
2. pursue any other legal or equitable remedy available under this Franchise or
applicable law.
D. The determination as to whether a material violation of this Franchise has occurred shall
be within the discretion of the City. Any such determination by the City must be in
writing and must be based upon findings that include Grantee's submissions, and such
determination shall be subject to appeal to the City Council or review by a court of
competent jurisdiction under applicable law.
13.3. Revocation
A. The City may revoke this Franchise and rescind all rights and privileges associated with
this Franchise in any of the following circumstances:
1. if Grantee fails to cure any material obligation under this Franchise;
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2. if Grantee willfully fails for more than three (3) days to provide continuous Cable
Service;
3. if Grantee attempts to evade any material provision of this Franchise or to practice
any fraud or deceit upon the City or subscribers;
4. if Grantee becomes insolvent, or if there is an assignment for the benefit of Grantee's
creditors;
5. if Grantee willfully misrepresents material facts in the negotiation of this Franchise;
or
6. if Grantee repeatedly breaches a material provision of the Customer Service
Standards.
B. Prior to forfeiture or termination of the Franchise, the City shall give written notice to the
Grantee of its intent to revoke the Franchise. The notice shall set forth the exact nature of
the noncompliance. Grantee shall have forty-five (45) days from receipt of such notice to
object in writing and to state its reasons for such objection and provide any explanation
or cure the alleged default. In the event the City does not receive a timely and
satisfactory response from Grantee, it may then seek a termination of the Franchise in
accordance with this section.
C. The City shall submit a report and recommendation as to termination of the Franchise to
the City’s appointed hearing examiner who shall conduct a public hearing to determine if
revocation of the Franchise is warranted. The hearing examiner shall act as the final
decision maker for the City.
1. At least twenty one (21) calendar days prior to the public hearing, the City clerk shall
issue a public hearing notice that shall establish the issue(s) to be addressed in the
public hearing; provide the time, date and location of the hearing; provide that the
City shall hear any Persons interested therein; and provide that the Grantee shall be
afforded fair opportunity for full participation, including the right to introduce
evidence, to require the production of evidence, to be represented by counsel and to
question witnesses, consistent with the adopted public hearing rules.
2. The hearing examiner shall hear testimony, take evidence, hear oral argument and
receive written briefs. A transcript may be made of such proceeding and the cost shall
be shared equally between the parties. A complete record of the public hearing shall
be completed including all exhibits introduced at the hearing and an electronic sound
recording.
D. Within thirty (30) days after the close of the hearing, the hearing examiner shall adopt a
written recommendation to the City Council. If the decision of the hearing examiner is to
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revoke and terminate the Franchise, the City Council shall declare that the Franchise is
revoked and terminated, and any form of surety is forfeited, unless the City Council finds
a clear error in the hearing examiner’s decision. The City council’s written decision shall
include findings of fact and conclusions derived from those facts which support the
decision of the City council.
E. Grantee shall be bound by the City council’s decision to revoke the Franchise unless an
appeal to a court of competent jurisdiction is timely filed as allowed by applicable law.
13.4. Termination
A. If this Franchise expires without lawful renewal or is otherwise lawfully terminated or
revoked, the City may, subject to applicable law:
1. Require Grantee to maintain and operate its Cable System on a month-to-month basis
until a new cable operator is selected; or
2. Purchase Grantee’s Cable System in accordance with federal law.
B. The City may order the removal of the above-ground Cable System facilities and such
underground facilities from the City at Grantee’s sole expense within thirty (30) days
following notice from the City. However, Grantee shall have no obligation to remove the
Cable System where it utilizes the system to provide other, permitted and lawful, non-
cable services and has any other authority under applicable law to maintain facilitates in
the public rights-of-way, or where Grantee is able to find a purchaser of the Cable System
who holds such authorization.
C. If Grantee fails to complete any removal required by subsection 10.10 to the City’s
satisfaction, after written notice to Grantee, the City may cause the work to be done and
Grantee shall reimburse the City for the costs and expenses incurred within thirty (30)
days after receipt of an itemized list of the costs and expenses, or the City may recover
the costs and expenses through Grantee’s security instruments if Grantee has not paid
such amount regarding removal, which shall include reasonable attorneys’ fees and other
costs for work conducted by City staff or agents.
13.5. Receivership
A. At the option of the City, subject to applicable law, this Franchise may be revoked after
the appointment of a receiver or trustee to take over and conduct the business of Grantee
or an Affiliated Entity whether in a receivership, reorganization, bankruptcy or other
action or proceeding, unless:
1. The receivership or trusteeship is timely vacated; or
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2. The receiver or trustee has timely and fully complied with all the terms and
provisions of this Franchise, and has remedies all defaults under this Franchise.
B. In the event that this Franchise is not revoked pursuant to subsection 13.4(A), the receiver
or trustee shall execute an agreement duly approved by a court having jurisdiction, by
which the receiver or trustee assumes and agrees to be bound by each and every term,
provision and limitation of this Franchise.
13.6. Alternative Remedies
A. Neither the existence of other remedies identified in this Franchise nor the exercise
thereof shall be deemed to bar or otherwise limit the right of either party to recover
monetary damages, as allowed under applicable law, or to seek and obtain judicial
enforcement by means of specific performance, injunctive relief or mandate, or any other
remedy at law or in equity.
B. The City specifically does not, by any provision of this Franchise, waive any right,
immunity, limitation or protection otherwise available to the City, its officers, officials,
City Council, Boards, commissions, agents, or employees under federal, State, or local
law (including, for example, Section 635A of the Cable Act).
13.7. Remedies Cumulative
A. Neither the existence of other remedies identified in this Franchise nor the exercise
thereof shall be deemed to bar or otherwise limit the right of either party to recover
monetary damages, as allowed under applicable law, or to seek and obtain judicial
enforcement by means of specific performance, injunctive relief or mandate, or any other
remedy at law or in equity.
B. The City specifically does not, by any provision of this Franchise, waive any right,
immunity, limitation or protection otherwise available to the City, its officers, officials,
City Council, Boards, commissions, agents, or employees under federal, State, or local
law (including, for example, Section 635A of the Cable Act).
13.8. Assessment of Liquidated Damages
A. Because it may be difficult to calculate the harm to the City in the event of a breach of
this Franchise by Grantee, the parties agree to liquidate damages as a reasonable
estimation of the actual damages.
1. Nothing in this subsection is intended to preclude the City from exercising any other
right or remedy with respect to a breach that continues past the time the City stops
assessing liquidated damages for such breach.
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2. The City shall first follow the violation procedures in section 13 for written notice to
Grantee and a thirty (30) day right to cure period under this Franchise before assessing
liquidated damages.
B. The City shall not assess any liquidated damages if Grantee has cured or commenced to,
and completes, the cure pursuant to this Franchise.
C. The first day for which liquidated damages may be assessed, if there has been no cure
after the end of the applicable cure period, shall be the day after the end of the applicable
cure period, including any extension of the cure period granted by the City.
D. Liquidated damages as defined by this subsection may be assessed for no more than one
hundred and eighty (180) calendar days for any individual incident, after which time the
City may implement other remedies as defined in this Franchise and under applicable
law.
E. The Grantee may appeal (by pursuing judicial relief) any assessment of liquidated damages
within thirty (30) days of paying the assessment.
F. Pursuant to the requirements outlined herein, liquidated damages shall not exceed the
following amounts:
1. One hundred dollars ($100.00) per day for material departure from the FCC technical
performance standards;
2. One hundred dollars ($100.00) per day for failure to provide the Access Channel or
any equipment related thereto which is required hereunder;
3. One hundred dollars ($100.00) per day for each material violation of the Customer
Service Standards;
4. One hundred dollars ($150.00) per day for failure to provide reports or notices as
required by this Franchise;
5. One hundred dollars ($250.00) per day for failure to comply with construction,
operation, or maintenance standards; and
6. One hundred dollars ($250.00) per day for any material breaches or defaults not
previously listed.
G. Grantee’s maintenance of the security required herein or by applicable code shall not be
construed to excuse unfaithful performance by Grantee of this Franchise; to limit liability
of Grantee to the amount of the security; or to otherwise limit the City’s recourse to any
other remedy available at law or equity.
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13.9. Effect of Abandonment
A. If Grantee abandons its Cable System during the Franchise term, or fails to operate its
Cable System in accordance with its duty to provide continuous service, the City, at its
option, may obtain an injunction, or operate the Cable System, or designate another entity
to operate the Cable System temporarily until Grantee restores service under conditions
acceptable to the City, or until the Franchise is revoked and a new franchisee is selected
by the City.
B. If the City operates the Cable System, or designates another entity to operate the Cable
System, Grantee shall reimburse the City or the City’s designee, as applicable, for all
reasonable costs and expenses incurred.
C. If Grantee permanently abandons its entire Cable System, for a period greater than 12
months, then, at the City’s sole discretion, such Cable System may become the property
of the City, and Grantee shall then submit to the City a bill of sale and other conveyance
documents, to be approved in advance by the City Attorney, transferring ownership of
such property to the City.
SECTION 14: FRANCHISE RENEWAL
Any renewal of this Franchise shall be governed by and comply with the applicable
provisions of the ACC, the provisions of Section 47 U.S.C. § 546, as amended, unless the
procedures or substantive protections set forth therein shall be deemed to be preempted or
superseded by the provisions of any subsequent federal or State law.
SECTION 15: FRANCHISE TRANSFER OR ASSIGNMENT
A. Subject to 47 U.S.C § 537, the Cable System and this Franchise shall not be sold,
assigned, transferred, leased or disposed of, either in whole or in part, either by
involuntary sale or by voluntary sale, merger or consolidation; nor shall title thereto,
either legal or equitable, or any right, interest or property therein pass to or vest in any
Person (hereinafter “Transfer of the Franchise”) without the prior written consent of the
City, which consent shall not be unreasonably withheld.
B. Grantee shall promptly notify the City of any actual or proposed change in, or transfer of,
or acquisition by any other party in Control of Grantee. The word “Control” as used
herein is not limited to majority stock ownership but includes actual working Control in
whatever manner exercised. Every change, transfer or acquisition of Control of Grantee,
except as noted in subsection 15.H, shall make this Franchise subject to cancellation
unless and until the City shall have consented thereto which consent shall not be
unreasonably withheld.
C. The parties to the Transfer of the Franchise or change of Control shall make a written
request to the City for its approval of the Transfer of the Franchise or change of Control
(a “Transfer Application”) and shall furnish all information required by law. In
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reviewing a Transfer Application, the City may inquire into any matter reasonably related
to the ability and willingness of the prospective transferee or controlling party to perform,
in accordance with 47 CFR § 76.502, and applicable ACC.
D. In seeking the City’s consent to a Transfer Application, the proposed transferee or
controlling party shall indicate whether, as applicable, it:
1. Has ever been convicted or held liable for acts involving deceit including any
violation of federal, State or local law, or is currently under an indictment,
investigation or complaint charging such acts;
2. Has ever had a judgment in an action for fraud, deceit, or misrepresentation entered
against it by any court of competent jurisdiction;
3. Has pending any material legal claim, lawsuit, or administrative proceeding arising
out of or involving a Cable System;
4. Is financially solvent, by submitting financial data, including financial information
as required by FCC Form 394; and
5. Has the legal, financial and technical capability to enable it to maintain and operate
the Cable System for the remaining Term of the Franchise.
E. In reviewing a Transfer Application, the City may inquire into the legal, technical and
financial qualifications of the prospective controlling party or transferee, and Grantee
shall assist the City in so inquiring. The City may condition said Transfer of the
Franchise or change of Control upon such terms and conditions as it deems reasonably
appropriate and as are consistent with federal law; provided, however, that any such
terms and conditions so attached shall be related to the legal, technical and financial
qualifications of the prospective controlling party or transferee. Additionally, such
Person shall effect changes as promptly as practicable in the operation of the Cable
System, if any changes are necessary to cure any violations or defaults presently in effect
or ongoing.
F. The City shall act by ordinance or resolution on the request within one hundred twenty
(120) days of the request, provided it has received all information required by law, such
as a completed FCC Form 394. Subject to the foregoing, if the City fails to render a final
decision on the request within one hundred twenty (120) days, such request shall be
deemed granted unless the requesting party and the City agree to an extension of time.
G. Within sixty (60) days of closing of any Transfer of the Franchise or change of Control, if
approved or deemed granted by the City, Grantee shall file with the City a copy of the
deed(s), agreement(s), lease(s) or other written instrument(s) evidencing such Transfer of
the Franchise or change of Control, certified and sworn to as correct by Grantee and the
transferee or new controlling entity. In the case of a Transfer of the Franchise or change
Page 57 of 142
DRAFT Resolution No. 5431
Franchise No. FRN19-0012
Page 47 of 51
of Control, the transferee or the new controlling entity shall upon request by the City file
its written acceptance agreeing to be bound by all of the provisions of this Franchise,
subject to applicable law.
H. Notwithstanding anything to the contrary in this Section 15, the prior approval of the City
shall not be required for any sale, assignment or transfer of the Franchise or Cable
System to an Affiliate; provided that the proposed assignee or transferee agrees in writing
to comply with all of the provisions of the Franchise, subject to applicable law.
I. Grantee may pledge the assets of the Cable System for the purpose of financing without
the consent of the City; provided that such pledge of assets shall not impair or mitigate
Grantee’s responsibilities and capabilities to meet all of its obligations under the
provisions of this Franchise. In the event of a change in Control, the Grantee will
continue to be bound by all provisions of the Franchise.
J. The consent or approval of the City to any Transfer of the Franchise or change in Control
shall not constitute a waiver or release of any rights of the City.
SECTION 16: ADDITIONAL PROVISIONS
16.1. Cumulative Rights
Subject to applicable law, all rights and remedies given to the City by this Franchise shall be
in addition to, and cumulative with, any and all other rights and remedies, existing or
implied, now or hereafter available to the City.
16.2. Costs to be Borne by Grantee
Grantee shall reimburse the City for all costs of publication of this Franchise, and any notices
prior to any public hearing regarding this Franchise, contemporaneous with its acceptance of
this Franchise.
16.3. Severability
If any Section, provision, or clause of this Franchise is held by a court of competent
jurisdiction to be invalid or unenforceable, or is preempted by federal or State laws or
regulations, the remainder of this Franchise shall not be affected, except as is otherwise
provided by this Franchise.
16.4. No Recourse Against the City of Auburn
Grantee’s recourse against the City or its officials, boards, commissions, agents or employees
for any claim arising from any provision or requirement of this Franchise shall be limited to
injunctive and declaratory relief, except where Grantee’s claim arises from acts or omissions
of the City acting in a proprietary capacity, but only to the extent such relief is not prohibited
Page 58 of 142
DRAFT Resolution No. 5431
Franchise No. FRN19-0012
Page 48 of 51
by federal law, which does not include granting, modifying, denying, terminating, or
enforcing franchises.
16.5. Action by Agencies or Courts
Grantee shall promptly notify the City in the event that any agency of the State or federal
governments or any court with competent jurisdiction requires Grantee to act inconsistently
with any provisions of this Franchise.
16.6. Franchise Interpretation
A. All captions, headings or titles in the paragraphs or sections of this Agreement are
inserted for convenience of reference only and shall not constitute a part of this
Agreement or act as a limitation of the scope of the particular paragraph or sections to
which they apply.
B. Interpretation or construction of this Agreement shall not be affected by any
determination as to who is the drafter of this Agreement, this Agreement having been
drafted by mutual agreement of the parties.
16.7. Choice of Law and Forum
A. This Franchise and the rights of the parties hereunder shall be governed by the interpreted
in accordance with the laws of the State of Washington and venue for any action
hereunder shall be in of the county in King County, Washington.
B. Subject to the limitations set forth in RCW 4.84.330, each party agrees to bear its own
costs and attorneys’ fees generated by any dispute arising out of this Franchise.
16.8. Force Majeure
A. If Grantee is prevented or delayed in the performance of any of its obligations under this
Franchise by reason of acts of god, floods, fire, hurricanes, tornadoes, earthquakes, or
other unavoidable casualties, insurrection, war, riot, vandalism, strikes, or sabotage, to
the extent such events prevent performance by Grantee and such event is beyond
Grantee’s control, Grantee shall have a reasonable time under the circumstances to
perform such obligation under this Franchise, or to get a substitute for such obligation to
the satisfaction of the City.
B. If Grantee claims a force majeure event, Grantee shall give prompt written notice of the
same to the City and shall set forth its plan of action to meet the obligations of this
Franchise once the force majeure event no longer prevents Grantee’s performance.
Page 59 of 142
DRAFT Resolution No. 5431
Franchise No. FRN19-0012
Page 49 of 51
16.9. Conflict of Interest Cancellation
The City may, in its sole discretion, by written notice to Grantee, immediately terminate this
Franchise if it is found, after due notice and examination by the City, that there is a violation
of the Ethics in Public Service Act, Chapter 42.52 RCW.
16.10. Integration & Binding Effect
A. This Franchise, together with any subsequent amendments or addendums, constitutes the
entire agreement of the Parties and no other understandings, oral or otherwise, regarding
this Franchise shall exist or bind any of the parties.
B. This Franchise shall be binding upon, and the benefits and obligations provided for herein
shall inure to and bind, the Parties and their respective successors and assigns, provided
that this Section shall not be deemed to permit any transfer or assignment otherwise
prohibited by this Franchise.
C. This Franchise is for the exclusive benefit of the Parties and it does not create a
contractual relationship with, or exist for the benefit of, any third party, including
contractors, subcontractors, affiliates, subsidiaries, or sureties.
16.11. Time Limits Strictly Construed
Whenever this Franchise sets forth a time for any act to be performed by Grantee, such time
shall be deemed to be of the essence, and any failure of Grantee to perform within the
allotted time may be considered a breach of this Franchise.
16.12. Discriminatory Practices Prohibited
Throughout the term of this Franchise, Grantee shall fully comply with all equal employment
and nondiscrimination provisions of applicable law.
16.13. No Joint Venture
Nothing herein shall be deemed to create a joint venture or principal-agent relationship
between the Parties, and neither party is authorized to, nor shall either party act towards third
Persons or the public in any manner which would indicate any such relationship with the
other, nor is Grantee granted any express or implied right or authority to assume or create
any obligation or responsibility on behalf, or in the name, of the City.
16.14. Waiver
The failure of the City at any time to require performance by Grantee of any provision hereof
shall in no way affect the right of the City hereafter to enforce the same, nor shall the waiver
by the City of any breach of any provision hereof be taken or held to be a waiver of any
Page 60 of 142
DRAFT Resolution No. 5431
Franchise No. FRN19-0012
Page 50 of 51
succeeding breach of such provision, or as a waiver of the provision itself or any other
provision.
16.15. Notice
Unless otherwise agreed to by the parties, any notice provided for under this Franchise shall
be sufficient if in writing and delivered personally to the following addressee or deposited in
the United States mail, postage prepaid, certified mail, return receipt requested, addressed as
follows, or to such other address as the receiving party specifies in writing:
Grantee's address shall be:
Comcast Cable Communications, LLC &
Comcast Cable Communications Management, LLC
4020 Auburn Way N
Auburn, WA 98002
Attention: Franchise Director
With a copy to:
Comcast Cable Communications, LLC &
Comcast Cable Communications Management, LLC
15815 25th Ave W
Lynnwood, WA 98087
Attention: Franchising Department
City's address shall be:
City of Auburn
Community Development and Public Works Department
25 West Main Street
Auburn, WA 98001-4998
Attention: Engineering Aide
With a copy to:
City of Auburn
City Clerk’s Office
25 West Main Street
Auburn, WA 98001-4998
Attention: City Clerk
Page 61 of 142
DRAFT Resolution No. 5431
Franchise No. FRN19-0012
Page 51 of 51
EXHIBIT
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 preceding Franchise
attached hereto and incorporated herein by this reference.
[Grantee]
By: ____________________________________ Date: _________________________
Name:
Title:
State of ___________________ )
) ss.
Count of __________________ )
On this ___ day of _____________, 20___, before me the undersigned, a Notary Public in and
for the State of _______________, duly commissioned and sworn, _________________
personally appeared and executed the foregoing instrument and acknowledged that said
execution is performed freely and voluntarily for the uses and purposed described within the
instrument, 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 62 of 142
AGENDA BILL APPROVAL FORM
Agenda Subject:
1st Quarter 2019 Financial Report (Coleman) (15 Minutes)
Date:
June 17, 2019
Department:
Finance
Attachments:
Q1 2019 Report
Budget Impact:
Administrativ e Recommendation:
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 March 2019 status report based on financial data available
as of April 24, 2019 for the period ending March 31, 2019 and sales tax information
representing business activity that occurred through January 2019.
Rev iewed by Council Committees:
Councilmember:Staff:Coleman
Meeting Date:June 24, 2019 Item Number:
Page 63 of 142
Quarterly Financial Report Through Q1-2019
General Fund Summary
$0.8
$5.2
$3.1
$1.4
$0.2 $0.4
$1.6
$0.5
$11.4
$3.8
$2.3
$0.1
$1.0
$5.2
$3.1
$0.3 $0.5 $0.5
$10.5
$2.9
$2.3
$0.0
$1.3 $1.5
PropertyTaxesSalesTaxesOtherTaxesIntergovernmental(Grants, etc.)DevelopmentService FeesCulture &RecreationOther Fees& ChargesOtherRevenuesPersonnelSupplies& ServicesOtherExpendituresTransfersOutRevenues Expenditures
$0
$5
$10
$15
MillionsYTD
Budget
YTD
Actuals
(Favorable)
YTD
Actuals
(Unfavorable)
General Fund Revenues and Expenditures
(Through Q1-2019)
$13.1
$17.6
$13.5 $15.7
Total
Revenues
Total
Expenditures
$0
$5
$10
$15
$20
Millions$0.3
$0.6
$0.2 $0.2 $0.4
$0.9 $0.7
$1.2 $1.3
$6.6
$0.9
$2.8
$0.9 $0.6
$0.3 $0.5
$0.1 $0.2 $0.4
$0.8 $0.6
$1.0 $0.8
$5.9
$2.8
$0.8
$0.4
$1.0
Council& MayorAdministrativeServicesCommunity &Human ServicesMunicipal Court& ProbationHumanResourcesFinanceCity AttorneyCommunityDevelopmentJail - SCOREPolicePublicWorksParks, Arts& RecreationStreetsNon-Departmental$0
$2
$4
$6
$8
MillionsYTD
Budget
YTD
Actuals
(Favorable)
YTD
Actuals
(Unfavorable)
General Fund Expenditures by Department(Through Q1-2019)
1 Page 64 of 142
Quarterly Financial Report Through Q1-2019 2
General Fund 2018
Summary of Sources and Uses Annual YTD YTD YTD
Budget Budget Actual Actual Amount
Operating Revenues
Property Tax 6 21,550,000$ 789,300$ 1,026,973$ 701,388$ 237,673$ 30.1 %
Retail Sales Tax 7-8 18,435,100 4,608,900 4,579,062 4,060,293 (29,838)(0.6)%
Sales Tax - Pierce County Parks 105,500 25,800 27,327 25,077 1,527 5.9 %
Sales Tax - Annexation Credit - - - 555,453 0 N/A %
Criminal Justice Sales Tax 2,162,000 528,800 596,048 550,711 67,248 12.7 %
Brokered Natural Gas Tax 137,900 43,000 54,596 40,558 11,596 27.0 %
City Utilities Tax 8-9 4,035,600 939,700 964,586 889,631 24,886 2.6 %
Admissions Tax 398,000 99,600 102,303 96,945 2,703 2.7 %
Electric Tax 8-9 3,558,100 870,800 880,133 936,682 9,333 1.1 %
Natural Gas Tax 8-9 1,008,000 212,300 234,053 270,367 21,753 10.2 %
Cable Franchise Fee 10 950,500 244,600 240,214 253,732 (4,386)(1.8)%
Cable Utility Tax 11 1,020,000 255,000 249,189 266,594 (5,811)(2.3)%
Cable Franchise Fee - Capital 65,000 16,250 16,235 13,975 (15)(0.1)%
Telephone Tax 8-9 1,177,900 296,200 228,262 352,969 (67,938)(22.9)%
Garbage Tax (external)8-9 134,400 33,600 36,017 32,961 2,417 7.2 %
Leasehold Excise Tax 50,000 12,500 12,952 12,369 452 3.6 %
Gambling Excise Tax 415,500 57,000 92,614 76,612 35,614 62.5 %
Taxes sub-total 55,203,500$ 9,033,350$ 9,340,564$ 9,136,315$ 307,214$ 3.4 %
Business License Fees 11-12 210,000$ 110,600$ 85,514$ 180,415$ (25,086)(22.7)%
Building Permits 13 1,070,000 295,000 105,394 268,673 (189,606)(64.3)%
Other Licenses & Permits 557,900 129,000 158,412 133,653 29,412 22.8 %
Intergovernmental (Grants, etc.)14 5,782,600 1,350,515 1,321,423 1,468,342 (29,092)(2.2)%
Charges for Services:15-18
General Government Services 15 2,579,200 644,700 647,052 22,144 2,352 0.4 %
Public Safety 16 1,111,000 234,975 257,891 218,947 22,916 9.8 %
Development Services Fees 16-17 805,000 157,400 265,405 152,822 108,005 68.6 %
Culture and Recreation 17-18 2,409,980 436,000 524,314 489,855 88,314 20.3 %
Fines and Penalties 18-19 859,500 229,200 238,267 243,919 9,067 4.0 %
Fees/Charges/Fines sub-total 15,385,180$ 3,587,390$ 3,603,672$ 3,178,770$ 16,282$ 0.5 %
Interest and Investment Earnings 20 348,700$ 87,000$ 91,120$ 74,666$ 4,120 4.7 %
Rents and Leases 20 849,300 219,300 229,036 265,221 9,736 4.4 %
Contributions and Donations 20 25,000 4,600 11,464 9,937 6,864 149.2 %
Other Miscellaneous 20 228,400 75,000 117,736 70,624 42,736 57.0 %
Transfers In 80,906 80,906 80,906 74,000 0 0.0 %
Insurance Recoveries - Capital & Operating 25,000 6,250 17,664 2,732 11,414 182.6 %
Other Revenues sub-total 1,557,306$ 473,056$ 547,926$ 497,180$ 74,870$ 15.8 %
Total Operating Revenues 72,145,986$ 13,093,796$ 13,492,162$ 12,812,266$ 398,366$ 3.0 %
Operating Expenditures
Council & Mayor 1,150,079$ 285,400$ 280,848$ 269,866$ 4,552$ 1.6 %
Administration 2,580,048 645,000 484,616 348,951 160,384 24.9 %
Community & Human Services (Comm Devel)1,085,473 174,900 121,182 245,237 53,718 30.7 %
Municipal Court & Probation 2,879,221 246,668 166,747 154,422 79,921 32.4 %
Human Resources 1,626,831 419,500 377,680 307,068 41,820 10.0 %
Finance 3,533,140 855,000 812,297 348,534 42,703 5.0 %
City Attorney 2,795,950 688,500 627,734 537,643 60,766 8.8 %
Community Development 4,774,436 1,244,800 1,049,922 1,077,890 194,878 15.7 %
Jail - SCORE 5,001,000 1,250,250 827,069 999,418 423,181 33.8 %
Police 28,921,479 6,556,700 5,875,472 6,916,183 681,228 10.4 %
Public Works 4,031,925 928,000 1,014,199 830,878 (86,199)(9.3)%
Parks, Arts & Recreation 12,878,201 2,844,600 2,791,788 2,738,881 52,812 1.9 %
Streets 4,041,472 890,500 829,940 829,513 60,560 6.8 %
Non-Departmental 2,488,910 607,900 443,948 640,052 163,952 27.0 %
Total Operating Expenditures 77,788,165$ 17,637,718$ 15,703,441$ 16,244,533$ 1,934,277$ 11.0 %
2019 2019 YTD Budget vs. Actual
Favorable (Unfavorable)
Percentage
Page
Ref
2 Page 65 of 142
Quarterly Financial Report Through Q1-2019 3
Executive Summary
This Executive Summary provides an overview of the City’s overall financial position for the
fiscal period ending March 31, 2019, reflecting financial data available as of April 24, 2019.
General Fund:
Through March 2019, General Fund revenues totaled $13.5 million and were $398,000 (3.0%)
higher than budget expectations. They also exceeded collections in Q1-2018 by $680,000.
Some notable variances to budget through March 2019 include:
• Property tax collections in Q1-2019 totaled $1.0 million, which was $238,000 higher
than budget expectations and exceeded 2018 year-to-date collections by $326,000.
[page 6]
• General Fund retail sales tax revenues totaled $4.6 million, which was $30,000 under
budget expectations. While General Fund sales tax collections in Q1-2019 were
$519,000 higher than what was collected in Q1-2018, this is due to a policy change:
between 2013 and 2018, all sales tax dollars collected from sales tax on construction
benefitted the Local Street Fund and therefore were not distributed to the General
Fund. Effective January 1, 2019, this policy changed and now all sales tax dollars stay
in the General Fund to support ongoing operations. [pages 7-8]
• The other taxes category performed favorably to budget in Q1-2019. Actual revenues
collected totaled $3.1 million, which was $31,000, or 1.0% favorable to budget. City
utility tax and natural gas tax revenues collected in Q1-2019 exceeded budget by
$25,000 and $22,000, respectively. These revenues were somewhat offset by
unfavorable variances in telephone tax revenues – which was $68,000 unfavorable to
budget. [pages 8-11]
• Building permit revenue collected in Q1-2019 totaled $105,000, compared to budget
of $295,000. The number of building permits issued in Q1-2019 totaled 105, which
represents a 16% decline over the number of permits issued in Q1-2018. [page 13]
• Intergovernmental revenues collected in Q1-2019 totaled $1.4 million and ended the
quarter $29,000 under budget expectations. This variance to budget was seen
primarily in the streamlined sales tax revenues. While the Marketplace Fairness Act
(MFA) was passed in 2017 in order to capture the retail sales tax lost from internet and
remote sales, the bill phases out and eliminates the streamlined sales tax mitigation
payments to local governments. It was anticipated that 2019 would be the last year
that the City of Auburn would receive the streamlined sales tax monies, but when the
2019 legislative session adjourned for the year (in May 2019), they voted to continue
funding of the mitigation payments through 2021. The annual revenue historically
collected on this revenue stream was approximately $2.0 million. While the sales tax
revenues collected under MFA are receipted in as sales tax revenue, it is deducted
from the amount of revenue the City receives for streamlined sales tax revenues. The
amount that the City received in Q1-2019 for the Marketplace Fairness Act was
$148,000. [page 14]
• Development services revenues collected in Q1-2019 totaled $265,000 and were
$108,000, or 68.6%, favorable to budget. This variance was due to higher than
anticipated revenues received for plan check fees as well as increased revenues for
zoning and subdivision fees. [pages 16-17]
3 Page 66 of 142
Quarterly Financial Report Through Q1-2019 4
General Fund expenditures in the first quarter of 2019 totaled $15.7 million compared to a
budget of $17.6 million, representing an 11.0% favorable variance to budget. It is important to
note that although jailing services (SCORE) expenditures appear to be $423,000 favorable to
budget, this is due to a timing issue where the monthly payment for services was made in April
versus March. All departments operated within their allocated quarterly budget in Q1-2019 with
the exception of the Public Works Department. The Public Works Department’s operating
expenditures in Q1-2019 totaled $1.0 million, which was $86,000 or 9.3% unfavorable to the
year-to-date budget. This unfavorable variance was primarily due to unbudgeted repair and
maintenance expenditures and traffic control overtime associated with the 15th Street NE/NW
street preservation project, which will be partially covered by a budget amendment that added
$36,500 in budget in April.
First quarter General Fund expenditures were $541,000 less than expenditures in Q1-2018.
This was primarily due to the timing of the payment to Valley Communications for 911 services:
typically, about one-third of the annual cost for this service is paid in Q1, but this payment – of
about $1.1 million – was not made until April (Q2) in 2019. Partly offsetting that difference was
about $750,000 in salary and benefit cost increases from 2018 to 2019. Note that the Q1
budget for salaries and wages does not include the wage adjustments for the Police and
Sergeant Collective Bargaining Agreements (which have since been approved), but does
include non-police union represented cost of living increases. In addition, healthcare benefit
costs have increased 7% - 12%, on average, over 2018 levels depending on the medical plan.
Year-over-year salary and benefit costs reported in the General Fund in 2019 will be higher than
salary and benefit costs in 2018 due not only to wage adjustments noted above but also to a
change in the way salary and benefit costs are allocated. Prior to 2019, salary and benefit costs
for support departments (Finance, Human Resources and the Legal Department) were directly
charged to other General Fund departments as well as to other City funds. Effective January 1,
2019, all salaries and benefit costs for the support departments mentioned above are now
charged 100% to the General Fund. In order to recoup the cost of services, the General Fund
now charges other funds for these services via an interfund charge, with an associated revenue
in the General Fund (for reference, refer to the general government services line item on page 2
of this report and pages 15-16). While this change results in higher salary and benefit costs
within the General Fund, the change is actually cost neutral to the bottom line.
YTD Budget
$ 13.1M
YTD Budget
$ 17.6M
YTD Actuals
$ 13.5M
YTD Actuals
$ 15.7M
$0 $5 $10 $15 $20
Revenues
Expenditures
$ Millions
General Fund
Revenues vs. Expenditures Through Q1-2019
4 Page 67 of 142
Quarterly Financial Report Through Q1-2019 5
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. 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.
In Q1-2019, Arterial Street Fund revenues totaled $161,000 as compared to collections of
$452,000 in Q1-2018, while expenditures totaled $169,000 as compared to expenditures of
$770,000 during the first quarter of last year. These variances are due to the level of activity on
projects in the fund and timing of grant reimbursement and other funding. [pages 24–25]
Local Street Fund revenues of $606,000 are in line with budget expectations, and compare to
collections of $786,000 in Q1-2018. This variance is due to a change in funding sources – last
year, the Local Street Fund received revenue from sales tax on construction. Starting in 2019,
the fund will receive a set revenue amount instead from real estate excise tax (REET 2).
Expenditures in the first quarter were $34,000 as compared with $116,000 in Q1-2018.
[pages 26–27]
Lastly, Arterial Street Preservation Fund revenues totaled $495,000 in Q1-2019, which was
approximately $33,000 lower than revenues in Q1-2018 but $70,000 above budget
expectations. Expenditures totaled $252,000 versus $166,000 in Q1-2018. These variances
are due to the level of activity on projects in the fund and timing of grant reimbursement and
other funding. [pages 28–29]
Enterprise Funds:
The City’s enterprise funds account for operations with revenues primarily provided from user
fees, charges or contracts for services.
All City utilities transitioned from bimonthly to monthly billing starting in January 2019. To
achieve standardization in the billing cycles, additional days were added to all billing cycles for
December 2018, which brought all customers current through December 31, 2018. This one-
time occurrence increased the amount of revenue accrued back from Q1-2019 billings to Q4-
2018. This decrease in revenue was largely offset by general increases to utility rates that took
effect January 1, 2019 – each utility fund continued to generate operating income in Q1-2019.
The Water Fund ended the quarter with operating income before depreciation of $1.3 million,
compared to $1.2 million during the same period last year. The Sewer Fund ended Q1-2019
with operating income before depreciation of $892,000 versus $557,000 in Q1-2018. The
Stormwater Fund ended the first quarter with operating income before depreciation of
$857,000 compared to $773,000 in Q1-2018. The Solid Waste Fund finished Q1-2019 with
operating income of $202,000 compared to $168,000 in Q1-2018. [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. No significant variances were reported in these funds during the first quarter. [page 35]
Investment Portfolio:
The City’s total cash and investments at the end of the Q1-2019 totaled $140.3 million, and
compares to $141.0 million at the end of Q4-2018. [attachment]
5 Page 68 of 142
Quarterly Financial Report Through Q1-2019 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 Q1-2019 totaled $1.0 million and were $238,000 higher than budget
expectations. As depicted in the graphic below, 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
$24.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsProperty Taxes
2019 Budget
2019 YTD Actual
2018 Actual
$15.8
$17.2 $17.9
$20.8 $21.4
$1.0
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2014 2015 2016 2017 2018 2019 YTDMillionsProperty Tax Revenue
Actuals
6 Page 69 of 142
Quarterly Financial Report Through Q1-2019 7
Sales tax collections in Q1-2019 totaled $4.6 million, which was $30,000 under budget
expectations. While sales tax revenues collected in the General Fund in Q1-2019 were
$519,000 more than collections in Q1-2018, this is primarily due to a policy change that became
effective on January 1, 2019. Between 2013 and 2018, all sales tax dollars collected from sales
tax on construction benefitted the Local Street Fund and were therefore not distributed to the
General Fund; effective January 1, 2019, this policy changed whereby all sales tax dollars stay
in the General Fund to support ongoing operations.
Due to the Marketplace Fairness Act (MFA) which became effective on January 1, 2018, retail
sales taxes collected in Q1-2019 included $148,000 from retail sales taxes collected on internet
and remote sales. This is collected as retail sales tax revenue and is deducted from the amount
the City receives for streamlined sales tax revenue (see page 14 for more information.)
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsSales & Use Tax
2019 Budget
2019 YTD Actual
2018 Actual
$13.8 $14.5 $14.6 $14.9
$15.9
$4.6
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
2014 2015 2016 2017 2018 2019 YTDMillionsSales & Use Tax
Actuals
7 Page 70 of 142
Quarterly Financial Report Through Q1-2019 8
The following table breaks out the City’s retail sales taxes by major business sector.
Citywide sales tax revenue collected in Q1-2019 was $105,000, or 2.2%, less than collections in
Q1-2018. The business sector that realized the greatest revenue increase compared to the
same period last year was in the services category, while the construction category declined
23.2%, or $145,000, compared to collections in Q1-2018.
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 Q1-2019 totaled $2.3 million and were $10,000, or 0.4%, under budget
expectations.
2018 2019
Component Group Actual Actual Amount
Construction 623,421$ 478,627$ (144,794)$ (23.2)%
Manufacturing 169,053 169,895 842 0.5 %
Transportation & Warehousing 19,879 23,577 3,698 18.6 %
Wholesale Trade 399,133 345,833 (53,300)(13.4)%
Automotive 1,009,073 978,456 (30,618)(3.0)%
Retail Trade 1,396,352 1,414,748 18,396 1.3 %
Services 1,043,983 1,108,980 64,997 6.2 %
Miscellaneous 22,820 58,947 36,127 158.3 %
YTD Total 4,683,713$ 4,579,062$ (104,651)$ (2.2)%
Comparison of Sales Tax Collections by Group
Through March
Change from 2018
Percentage
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsUtility Tax
2019 Budget
2019 YTD Actual
2018 Actual
8 Page 71 of 142
Quarterly Financial Report Through Q1-2019 9
Unfavorable variances in telephone tax revenues during Q1-2019 were partially offset
by higher City utility tax revenues and natural gas tax revenues collected during the
period.
2018 2019 2019
Utility Tax Type YTD Actual YTD Budget YTD Actual Amount Amount
City Interfund Utility Taxes 889,631$ 939,700$ 964,586$ $ 74,955 8.4 % $ 24,886 2.6 %
Electric 936,682 870,800 880,133 (56,550) (6.0)%9,333 1.1 %
Natural Gas 270,367 212,300 234,053 (36,315) (13.4)%21,753 10.2 %
Telephone 352,969 296,200 228,262 (124,708) (35.3)%(67,938) (22.9)%
Solid Waste (external)32,961 33,600 36,017 3,056 9.3 %2,417 N/A %
YTD Total 2,482,611$ 2,352,600$ 2,343,050$ $ (139,561)(5.6)% $ (9,550)(0.4)%
Through March 2019
Utility Tax by Type
2019 vs. 2018 Actual 2019 vs. Budget
Percentage Percentage
$10.0 $9.7 $10.0 $10.2 $9.9
$2.3
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
2014 2015 2016 2017 2018 2019
YTDMillionsUtility Tax Revenues
Actuals
9 Page 72 of 142
Quarterly Financial Report Through Q1-2019 10
Cable Franchise Fees, which are collected quarterly, totaled $240,000 in Q1-2019 and were
$4,000, or 1.8%, lower than budget expectations.
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable Franchise Fee
2019 Budget
2019 YTD Actual
2018 Actual
$0.9 $0.9 $1.0 $1.0 $1.0
$0.2
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
2014 2015 2016 2017 2018 2019 YTDMillionsCable Franchise Fee
Actuals
10 Page 73 of 142
Quarterly Financial Report Through Q1-2019 11
Cable Utility Tax. This tax became effective on January 1, 2017 and is also collected quarterly.
Total cable utility tax revenue collected in Q1-2019 totaled $249,000 and was slightly under
budget expectations by $6,000, or 2.3%.
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 Q1-2019 totaled $86,000, and compare to a budget of
$111,000 and to significantly higher collections in Q1-2018 (about $180,000). The year-over-
year decline in revenues is due to the timing of when business license renewal notices are paid:
the majority of businesses paid their 2018 business licenses in early 2018 and also paid their
2019 business licenses in late 2018.
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
1st Quarter 2nd Quarter 3rd Quarter 4th QuarterThousandsCable Utility Tax
2019 Budget
2019 YTD Actual
2018 Actual
11 Page 74 of 142
Quarterly Financial Report Through Q1-2019 12
$0
$50
$100
$150
$200
$250
$300
$350
$400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecThousandsBusiness Licenses
2019 Budget
2019 YTD Actual
2018 Actual
$171
$282
$225
$163
$353
$86
$0
$50
$100
$150
$200
$250
$300
$350
$400
2014 2015 2016 2017 2018 2019 YTDThousandsBusiness License Revenues
Actuals
12 Page 75 of 142
Quarterly Financial Report Through Q1-2019 13
Building permit revenues through March 2019 totaled $105,000 as compared to a year-to-date
budget of $295,000. A total of 105 building permits were issued in Q1-2019 compared to 125
building permits issued in Q1-2018, representing a 16.0% reduction. Of the permit revenues
collected in Q1-2019, 53% was attributable to commercial projects and the remaining 47% was
predominately single family housing permits.
Major projects providing building permit revenues in the first quarter of 2019 include Young’s
Market and several single family houses in the Hastings housing development.
$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 DecMillionsBuilding Permits
2019 Budget
2019 YTD Actual
2018 Actual
$1.5
$1.2
$2.0
$1.2
$0.9
$0.1$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
2014 2015 2016 2017 2018 2019 YTDMillionsBuilding Permits
Actuals
13 Page 76 of 142
Quarterly Financial Report Through Q1-2019 14
Intergovernmental revenues include grants (direct and indirect federal, state and local),
revenue from the Muckleshoot Indian Tribe (MIT) compact, intergovernmental service revenues,
and state shared revenues. Collections in Q1-2019 totaled $1.3 million and were $29,000, or
2.2%, under budget expectations.
The majority of the variance to budget was seen in the streamlined sales tax revenue
distribution amount as this revenue was reduced by $148,000 in Q1-2019 due to the
Marketplace Fairness Act (MFA), which was implemented in January 2018 to capture the retail
sales tax lost on internet and remote sales. MFA revenues are collected as retail sales tax
revenues, which then reduces the amount the City receives in streamlined sales taxes. (See
also page 7).
2018 2019 2019
Revenue YTD Actual YTD Budget YTD Actual Amount Amount
Federal Grants -$ -$ 2,392$ $ 2,392 N/A % $ 2,392 N/A %
State Grants 36,988 24,600 36,496 (492) (1.3)%11,896 48.4 %
Interlocal Grants 0 0 0 0 0.0 %0 N/A %
Muckleshoot Casino Services 227,733 269,200 269,242 41,510 18.2 %42 0.0 %
State Shared Revenues:
Streamlined Sales Tax 480,641 421,250 335,368 (145,272) (30.2)%(85,882) (20.4)%
Motor Vehicle Fuel Tax 285,947 267,800 280,995 (4,952) (1.7)%13,195 4.9 %
Criminal Justice - High Crime 52,488 50,000 57,305 4,817 9.2 %7,305 14.6 %
Criminal Justice - Population 5,595 5,500 5,880 285 5.1 %380 6.9 %
Criminal Justice - Special Prog.20,270 20,100 21,210 940 4.6 %1,110 5.5 %
Marijuana Revenues 100,310 27,000 45,617 (54,693) (54.5)%18,617 69.0 %
State DUI 2,919 2,900 2,932 13 0.5 %32 1.1 %
Fire Insurance Tax 0 0 0 0 N/A %0 N/A %
Liquor Excise 91,868 97,440 99,661 7,793 8.5 %2,221 2.3 %
Liquor Profit 163,585 164,725 164,325 741 0.5 %(400) (0.2)%
Total State Shared:1,203,622 1,056,715 1,013,293 (190,329)(15.8)%(43,422) (4.1)%
YTD Total 1,468,342$ 1,350,515$ 1,321,423$ (146,919)$ (10.0)%(29,092)$ (2.2)%
Through March 2019
Intergovernmental Revenues (Grants, Entitlements & Services)
2019 vs. 2018 Actual 2019 vs. Budget
% Change % Change
$5.1 $5.3 $5.7 $6.1 $6.3
$1.3
$0
$1
$2
$3
$4
$5
$6
$7
$8
2014 2015 2016 2017 2018 2019
YTDMillionsIntergovernmental Revenues
(Grants, Entitlements & Services)
Actuals
14 Page 77 of 142
Quarterly Financial Report Through Q1-2019 15
Charges for Services consist of general governmental service charges, public safety charges,
development service fees, and culture & recreation fees. Overall, charges for services collected
through March 2019 totaled $1.7 million, which was $222,000 favorable to budget. The primary
areas of increases were seen in both development services and culture and recreation
revenues as explained below.
A process change was implemented in 2019 that significantly affects the comparison of year-
over-year variances. Prior to 2019, salary and benefit expenditures for support departments
(Finance, Human Resources and the Legal Department) were allocated between the General
Fund and other City funds. Effective January 1, 2019, all salary and benefit costs for support
departments are now fully charged to their respective General Fund department. The General
Fund now charges these other funds for these services via an interfund assessment, with a
corresponding General Fund revenue shown under “General Government” in the table above
(hence the dramatic change from 2018 to 2019 shown in the table). This policy change results
in salary and benefit expenditures within the General Fund that appear higher than were
previously reported, but the change has a cost-neutral impact on the General Fund due to the
revenue offset. Total revenues recouped as general governmental revenues in the General
Fund for the salary and benefit interfund charge were $626,000 in Q1-2019.
2018 2019 2019
Revenue YTD Actual YTD Budget YTD Actual Amount Amount
General Government 22,144$ 644,700$ 647,052$ $ 624,908 2,822.0 % $ 2,352 0.4 %
Public Safety 218,947 234,975 257,891 38,944 17.8 %22,916 9.8 %
Development Services 152,822 157,400 265,405 112,583 73.7 %108,005 68.6 %
Culture & Recreation 489,855 436,000 524,314 34,459 7.0 %88,314 20.3 %
YTD Total 883,768$ 1,473,075$ 1,694,662$ 810,894$ 91.8 % $ 221,587 15.0 %
Through March 2019
Charges for Services by Type
2019 vs. 2018 Actual 2019 vs. Budget
Percentage Percentage
$3.9 $4.3 $4.1 $4.2
$4.7
$1.7
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2014 2015 2016 2017 2018 2019
YTDMillionsCharges for Services
Actuals
15 Page 78 of 142
Quarterly Financial Report Through Q1-2019 16
Public safety revenues consist of revenues received for police officer extra duty security
services, whereby officers are contracted for and reimbursement is made by the hiring agency.
This also includes reimbursements from the Muckleshoot Indian Tribe (MIT) for a full-time
dedicated police officer and associated expenditures as well as monies collected from the
Auburn School District and the Criminal Justice Training Commission (CJTC) for services
rendered. Public safety revenues collected in Q1-2019 totaled $258,000 and compare to a
budget of $235,000. The majority of the favorability seen in this revenue source is due to extra
duty overtime reimbursements exceeding budget expectations resulting from increased
requests for police officer security services.
Development services fee collections consist primarily of plan check fees, facility extension
charges, and zoning and subdivision fees. In Q1-2019, development service fees totaled
$265,000 and ended the quarter $108,000 favorable to budget expectations. Total plan check
revenues collected in Q1-2019 totaled $156,000 compared to $113,000 collected in Q1-2018
which is a 38.3% increase in revenues. Plan check revenues collected in the first quarter of
2019 were from numerous commercial and residential projects including Auburn Elementary
School #15, Young’s Market, and projects at the Outlet Collection. In addition to increased plan
check revenues collected in Q1-2019, both facility extension fees and zoning fees were higher
than anticipated. One of the projects that contributed to these increased revenues is Carbon
Trails, a single family subdivision project slated to include 44 houses.
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsDevelopment Service Fees
2019 Budget
2019 YTD Actual
2018 Actual
16 Page 79 of 142
Quarterly Financial Report Through Q1-2019 17
The majority of culture and recreation revenues are derived from green fees and pro shop sales
at the Auburn Golf Course, recreational classes, ticket sales at the Auburn Avenue Theatre,
special events, and athletic league fees. Culture and recreation revenues collected in Q1-2019
totaled $524,000, exceeding collections in the same period last year by $34,000 and exceeding
Q1-2019 budget by $88,000. The majority of the year-over-year increase in revenues was seen
in green fee revenues at the Auburn Golf Course and increased ticket sales at the Auburn
Avenue Theatre. In Q1-2019, green fee revenues at the Auburn Golf Course increased 15.6%
and ticket sales at the Auburn Avenue Theatre increased 43.5% compared to the same period
last year.
$1.1
$1.4
$1.0
$0.9 $0.9
$0.3
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
2014 2015 2016 2017 2018 YTD
2019MillionsDevelopment Service Fees
Actuals
$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
2019 Budget
2019 YTD Actual
2018 Actual
17 Page 80 of 142
Quarterly Financial Report Through Q1-2019 18
Fines & Penalties include civil penalties (which include code compliance fines), parking and
traffic 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 the first quarter of 2019 totaled $238,000 as compared to a budget of $229,000.
As seen in the table below, civil penalty revenues collected in Q1-2019 were $45,000 higher
than collections in Q1-2018. This year-over-year increase was due to revenues collected for
code compliance penalties, which are largely unbudgeted. Code compliance penalties are
revenues collected from banks on vacant bank-owned properties that are neglected and in non-
compliance with City code.
$2.2 $2.3 $2.3 $2.4
$2.6
$0.5
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2014 2015 2016 2017 2018 2019
YTDMillionsCulture & Recreation Revenues
Actuals
2018 2019 2019
Month YTD Actual YTD Budget YTD Actual Amount Amount
Civil Penalties 4,178$ 800$ 48,956$ $ 44,778 1,071.8 % $ 48,156 6,019.5 %
Civil Infraction Penalties 130,924 133,800 104,522 (26,402) (20.2)%(29,278) (21.9)%
Redflex Photo Enforcement 2,914 0 754 (2,159) (74.1)%754 N/A %
Parking Infractions 35,986 36,500 31,849 (4,137) (11.5)%(4,651) (12.7)%
Criminal Traffic Misdemeanor 17,893 14,700 8,485 (9,408) (52.6)%(6,215) (42.3)%
Criminal Non-Traffic Fines 14,418 9,600 18,795 4,377 30.4 %9,195 95.8 %
Criminal Costs 15,344 14,700 7,178 (8,166) (53.2)%(7,522) (51.2)%
Non-Court Fines & Penalties 22,264 19,100 17,728 (4,536) (20.4)%(1,372) (7.2)%
YTD Total 243,919$ 229,200$ 238,267$ $ (5,652)(2.3)% $ 9,067 4.0 %
Through March 2019
Fines & Penalties by Type
2019 vs. 2018 Actual 2019 vs. Budget
Percentage Percentage
18 Page 81 of 142
Quarterly Financial Report Through Q1-2019 19
$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
2019 Budget
2019 YTD Actual
2018 Actual
$1.2
$0.9 $0.9 $0.9 $0.9
$0.2
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
2014 2015 2016 2017 2018 2019
YTDMillionsFines & Penalties
Actuals
19 Page 82 of 142
Quarterly Financial Report Through Q1-2019 20
Miscellaneous revenues consist of investment earnings, income from facility rentals, revenue
collected on golf cart rentals at the Auburn Golf Course, contributions & donations, and other
income including the quarterly purchasing card (P-card) rebate monies. Revenues collected in
this category in Q1-2019 totaled $449,000 and exceeded budget expectations by $63,000, or
16.4%. The majority of this increase was in the other miscellaneous category and was due to
one-time unbudgeted monies.
Interest and investments revenue collected in Q1-2019 totaled $91,000 and exceeded budget
expectations by $4,000, or 4.7%. Interest and investments earnings collected in Q1-2019 were
$16,000 higher that collections in the same period last year. The primary reason for the year-
over-year increase in revenues is due to the increase in the State Investment Pool interest rate.
Rents and lease revenue collected in Q1-2019 totaled $229,000 and compares to $265,000
collected in Q1-2018. This decline in revenues collected was primarily due to deposits for
facility rentals that have declined by $32,000 in Q1-2019 compared to the same period last year.
2018 2019 2019
Month YTD Actual YTD Budget YTD Actual Amount Amount
Interest & Investments 74,666$ 87,000$ 91,120$ 16,454$ 22.0 %4,120$ 4.7 %
Rents & Leases 265,221 219,300 229,036 (36,185)(13.6)%9,736 4.4 %
Contributions & Donations 9,937 4,600 11,464 1,527 15.4 %6,864 149.2 %
Other Miscellaneous Revenue 70,624 75,000 117,736 47,112 66.7 %42,736 57.0 %
YTD Total 420,448$ 385,900$ 449,356$ 28,908$ 6.9 %63,456$ 16.4 %
Miscellaneous Revenues by Type
Through March 2019
2019 vs. 2018 2019 vs. Budget
Percentage Percentage
$1.0 $1.0
$1.2
$1.5
$1.8
$0.4
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
2014 2015 2016 2017 2018 2019
YTDMillionsMiscellaneous Revenues
Actuals
20 Page 83 of 142
Quarterly Financial Report Through Q1-2019 21
Real Estate Excise Tax (REET) revenue is receipted into the Capital Improvement Projects
Fund and is used for governmental capital projects. REET revenue represents taxes on the
sale of both commercial properties and single-family residences. REET revenues collected in
the first quarter of 2019 totaled $819,000, exceeding budget expectations by $188,000.
Commercial sales in Q1-2019 included the sale of an assisted living facility, an auto dealership,
an auto repair business, warehousing space, and several multi-family complexes.
2018 2019 2019
Month Actual Budget Actual Amount Amount
Jan 240,414$ 210,100$ 383,547$ 143,132$ 59.5 %173,447$ 82.6 %
Feb 200,783 210,100 206,022 5,239 2.6 %(4,078) (1.9)%
Mar 255,218 210,100 229,181 (26,037) (10.2)%19,081 9.1 %
Apr 362,999 210,100
May 427,054 210,100
Jun 371,816 210,100
Jul 342,006 210,100
Aug 373,889 210,100
Sep 387,673 210,100
Oct 285,967 210,100
Nov 272,195 210,100
Dec 270,161 209,800
YTD Total 696,416$ 630,300$ 818,750$ 122,334$ 17.6 %188,450$ 29.9 %
Real Estate Excise Tax Revenues
March 2019
Percentage
2019 vs. 2018 2019 vs. Budget
Percentage
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsReal Estate Excise Tax
2019 Budget
2019 YTD Actual
2018 Actual
21 Page 84 of 142
Quarterly Financial Report Through Q1-2019 22
$2.5
$4.6 $4.3
$3.6 $3.8
$0.8
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2014 2015 2016 2017 2018 2019
YTDMillionsReal Estate Excise Tax Revenues
Actuals
22 Page 85 of 142
Quarterly Financial Report Through Q1-2019 23
Pet Licensing
Pet licensing services are provided by the Auburn Valley Humane Society. In Q1-2019, 939 pet
licenses were sold, resulting in $25,635 in revenue. In Q1-2018, 662 licenses were sold,
resulting in $17,570 in revenue.
0
500
1,000
1,500
2,000
2,500
$0
$5
$10
$15
$20
$25
JanFebMarAprMayJunJulAugSepOctNovDecNumber of Licenses IssuedLicense Revenue( thousands )Pet Licensing Revenues vs Licenses Sold
2019 vs 2018
2018 License Revenue
2019 License Revenue
2018 Licenses Issued
2019 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 Revenues & Licenses Sold
2019 vs 2018
2019 License Revenue
2019 Licenses Issued
2018 Licenses Issued
23 Page 86 of 142
Quarterly Financial Report Through Q1-2019 24
Street Funds
This section provides a financial overview of the City’s three street funds for the quarter ending
March 31, 2019. 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 March 31, 2019 there were 30 separate street projects
budgeted in this fund.
In Q1-2019, revenues collected totaled $161,000 as compared to collections of $452,000 in Q1-
2018. Total expenditures in Q1-2019 were $169,000 as compared to $770,000 expended in Q1-
2018. Variances in revenues and expenditures are largely due to the timing of capital
expenditures and any subsequent reimbursement via grants and/or operating transfers.
Expenditure timing is generally determined by the current phase of each individual capital
project; expenditures tend to increase as projects move from design phase into construction. In
addition, several inclement weather situations during Q1-2019 were not conducive to street
construction.
Fund 102 - Arterial Street 2018
Summary of Sources and Uses 2019 2019 YTD 2019 YTD 2018 YTD
Report Period: March 2019 Budget Budget Actual Actual Amount
Revenues
Federal Grants 1,001,381$ -$ -$ -$ -$
State Grants - - - - -
Motor Vehicle Fuel and Multimodal Taxes 620,000 141,388 148,617 150,077 7,229 5.1 %
Developer Contributions - - - - -
Miscellaneous Revenue - - - - -
Operating Transfer In 1,367,060 88,609 1,504 295,929 (87,105) (98.3)%
Investment Income 28,300 5,317 10,986 6,294 5,669 106.6 %
Total Revenues 3,016,741$ 235,314$ 161,106$ 452,300$ (74,207)$ (31.5)%
Expenditures
Salary and Benefits 132,000$ 34,435$ 66,721$ 96,095$ (32,286)$ (93.8)%
Capital Outlay 2,964,858 151,539 83,127 648,226 68,412 45.1 %
Subtotal - Capital Project Expenditures 3,096,858 185,974 149,848 744,320 36,126 19.4 %
Services and Charges 400,000 22,840 - 1,778 22,840 100.0 %
Interfund Payments for Services 78,100 19,525 19,525 19,716 (0) (0.0)%
Debt Service Principal and Interest 208,300 - - - -
Operating Transfer Out 68,196 - - 4,272 -
Total Expenditures 3,851,454$ 228,339$ 169,373$ 770,087$ 58,966$ 25.8 %
Net Change in Fund Balance (834,713)$ 6,975$ (8,267)$ (317,787)$ (15,241)$ (218.5)%
Beg. Fund Balance, January 2019 2,104,190$
Net Change in Fund Balance, March 2019 (8,267)
Ending Fund Balance, March 2019 2,095,923$
2019 Budgeted Ending Fund Balance 1,269,477$
2019 2019 YTD Budget vs. Actual
Favorable (Unfavorable)
Percentage
24 Page 87 of 142
Quarterly Financial Report Through Q1-2019 25
This table presents the status of the projects with the most significant budget impact on the
fund:
Notes:
• Several large multi-year projects are reaching completion of construction in 2019 and several large projects
are beginning design, with construction anticipated in 2020.
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 102 -Capital Project Expenditures
2019 YTD Budget
2019 YTD Actual
2018 YTD Actual
2019 YTD Actual:
$0.1M
2019 Annual Budget:
$3.1M
2018 YTD Actual:
$0.7M
Name 2019 Budget YTD Actual Remaining
A St SE Corridor Signal Safety & Op. Imp.$0.4M $0.1M $0.3M
37th and A Street Traffic Signal $0.2M $0.0M $0.2M
F Street SE Non-Motorized Improvements $0.2M $0.0M $0.2M
All Other Projects (27 Others Budgeted)$2.3M $0.1M $2.2M
Total $3.1M $0.1M $2.9M
*Components may not sum to total due to rounding.
Fund 102 - Arterial Street
Capital Projects Status *
25 Page 88 of 142
Quarterly Financial Report Through Q1-2019 26
Fund 103 – Local Street Fund
The Local Street Fund is a special revenue fund used for local street repair. Effective January 1,
2019 this fund is funded at a specific amount by real estate excise tax (REET 2). Previously, the
funding source was sales tax on construction. In Q1-2019, revenues in this fund totaled
$606,000, which is in line with budget expectations. This compares to collections of $786,000 in
Q1-2018. Expenditures in Q1-2019 were $34,000 and compare to expenditures of $116,000 in
Q1-2018. Historically, well over half of this fund’s annual expenditures occur in the final four
months of each year due to the weather sensitivity of pavement construction (this work needs to
be done primarily in the summer and early fall). Highlighted in the table below and shown in the
following graph are the fund’s total expenditures related to capital projects. In addition, several
inclement weather situations during Q1-2019 were not conducive to street construction.
Fund 103 - Local Street Fund 2018
Summary of Sources and Uses 2019 2019 YTD 2019 YTD 2018 YTD
Report Period: March 2019 Budget Budget Actual Actual Amount
Revenues
Sales Tax on Construction -$ -$ -$ 623,421$ -$
Operating Transfer In 1,900,000 587,500 587,500$ 150,000 - 0.0 %
Interest Earnings 12,000 1,956 18,196$ 12,426 16,241 830.3 %
Total Revenues 1,912,000$ 589,456$ 605,696$ 785,847$ 16,241$ 2.8 %
Expenditures
Capital Salary and Benefits 231,616 59,558 3,840 - 55,718 93.6 %
Capital Services and Charges - - - 1,778 -
Capital Outlay 3,217,860 59,973 21,736 77,103 38,238 63.8 %
Subtotal - Capital Project Expenditures 3,449,476 119,531 25,575 78,881 93,956 78.6 %
Admin Salary and Benefits - - 4,228 33,371 (4,228)$
Admin Services and Charges 40,700 13,533 119 178 13,414 99.1 %
Interfund Payments for Services 15,200 3,800 3,800 3,060 (0) (0.0)%
Operating Transfer Out - - - 74 -
Total Expenditures 3,505,376$ 136,864$ 33,722$ 115,564$ 103,142$ 75.4 %
Net Change in Fund Balance (1,593,376)$ 452,592$ 571,974$ 670,282$ 119,382$ 26.4 %
Beg. Fund Balance, January 2019 2,550,256$
Net Change in Fund Balance, March 2019 571,974
Ending Fund Balance, March 2019 3,122,230$
2019 Budgeted Ending Fund Balance 956,880$
2019 2019 YTD Budget vs. Actual
Favorable (Unfavorable)
Percentage
26 Page 89 of 142
Quarterly Financial Report Through Q1-2019 27
This table presents the status of the projects with the most significant budget impact on the
fund:
Notes:
• The 2018 Citywide Pavement Patch and Overlay project is nearing completion of construction.
• The 2018 Local Street Pavement Reconstruction project is nearing completion of construction.
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 103 -Capital Project Expenditures
2019 YTD Budget
2019 YTD Actual
2018 YTD Actual
2019 Annual
Budget :
$3.4M
2018 YTD Actual:
$0.1M
2019 YTD Actual:
$0.0M
Name 2019 Budget YTD Actual Remaining
2019 Local Street Reconstruction $2.6M $0.0M $2.6M
2018 Citywide Pavement Patch and Overlay $0.5M $0.0M $0.5M
2018 Local Street Pavement Reconstruction $0.3M $0.0M $0.2M
All Other Projects (1 Other Budgeted)$0.2M $0.0M $0.2M
Total $3.4M $0.0M $3.4M
*Components may not sum to total due to rounding.
Fund 103 - Local Street
Capital Projects Status*
27 Page 90 of 142
Quarterly Financial Report Through Q1-2019 28
Fund 105 – Arterial Street Preservation Fund
The Arterial Street Preservation Fund is a special revenue fund that 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 2019 include A Street SE Preservation, 2019 Citywide Pavement Patching
& Overlay, and 2018 Citywide Pavement Patching & Overlay. In Q1-2019 revenues totaled
$495,000, which is approximately $33,000 lower than the same period last year, but $70,000
higher than budget expectations.
Expenditures in Q1-2019 were $252,000 as compared to $166,000 in Q1-2018. Historically, the
majority of this fund’s expenditures occur in the second half of each year due to the weather
sensitivity of pavement construction (this work needs to be done primarily in the summer and
early fall). Highlighted in the table below and shown in the following graph are the fund’s total
expenditures related to capital projects. In addition, several inclement weather situations during
Q1-2019 were not conducive to street construction.
Fund 105 - Arterial Street Preservation 2018
Summary of Sources and Uses 2019 2019 YTD 2019 YTD 2018 YTD
Report Period: March 2019 Budget Budget Actual Actual Amount
Revenues
City Utility Tax 674,600$ 157,154$ 160,764$ 148,272$ 3,611$ 2.3 %
Electric Utility Tax 711,600 140,250 176,027 187,336 35,777 25.5 %
Natural Gas Utility Tax 201,600 42,059 46,811 54,073 4,752 11.3 %
Cable TV Tax 190,100 23,020 49,838 53,319 26,818 116.5 %
Telephone Utility Tax 235,600 48,689 45,652 58,633 (3,037) (6.2)%
Garbage Utility Tax (External Haulers)22,400 5,600 6,003 5,122 403 7.2 %
Grants 940,511 - - - -
Operating Transfer In 746,279 - - 13,063 -
Interest Earnings 29,800 7,450 9,431 7,531 1,981 26.6 %
Total Revenues 3,752,490$ 424,221$ 494,525$ 527,350$ 70,303$ 16.6 %
Expenditures
Salary and Benefits 241,000$ 49,791$ 92,601$ 87,465$ (42,810)$ (86.0)%
Capital Outlay 4,530,722 74,302 158,981 78,743 (84,679) (114.0)%
Subtotal - Capital Project Expenditures 4,771,722 124,094 251,582 166,209 (127,489) (102.7)%
Supplies - - - - -
Services and Charges 165,000 - - - -
Operating Transfer Out 26,831 - - - -
Total Expenditures 4,963,553$ 124,094$ 251,582$ 166,209$ (127,489)$ (102.7)%
Net Change in Fund Balance (1,211,063)$ 300,128$ 242,942$ 361,141$ (57,185)$ (19.1)%
Beg. Fund Balance, January 2019 2,580,480$
Net Change in Fund Balance, March 2019 242,942
Ending Fund Balance, March 2019 2,823,422$
2019 Budgeted Ending Fund Balance 1,369,417$
2019 2019 YTD Budget vs. Actual
Favorable (Unfavorable)
Percentage
28 Page 91 of 142
Quarterly Financial Report Through Q1-2019 29
This table presents the status of the projects with the most significant impacts on the fund:
Notes:
The A Street SE Preservation project is anticipated to be awarded in June 2019.
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMillionsFund 105 -Capital Project Expenditures
2019 YTD Budget
2019 YTD Actual
2018 YTD Actual 2019 Annual
Budget:
$4.8M
2018 YTD Actual:
$0.2M2019 YTD Actual:
$0.3M
Name 2019 Budget YTD Actual Remaining
A Street SE Preservation $1.7M $0.0M $1.7M
2019 Citywide Pavement Patching & Overlay $1.0M $0.0M $1.0M
2018 Citywide Pavement and Patching Overlay $0.9M $0.0M $0.9M
All Other Projects (7 Others Budgeted)$1.2M $0.2M $1.0M
Total $4.8M $0.3M $4.5M
*Components may not sum to total due to rounding.
Capital Projects Status*
Fund 105 - Arterial Street Preservation
29 Page 92 of 142
Quarterly Financial Report Through Q1-2019 30
Fund 124 – Mitigation Fees
The Mitigation Fees fund is a special revenue fund funded from revenues from fees for new
development that are assessed at the time applications are received for development activity.
These revenues are used to address costs associated with City growth.
The fund houses two types of revenues: mitigation fees and impact fees. Mitigation fees are
variable charges collected as a result of State Environmental Policy Act (SEPA) reviews and the
City’s determination that a project must pay additional fees to compensate for a unique effect
that it has on the community. Impact fees are set charges collected automatically for a variety of
projects. These fees are adopted annually by the City Council based on projects anticipated in
the Capital Facilities plan over the next six years.
About $141,000, or 11.8%, of annual budgeted revenues were received in Q1-2019. While
lower than budget expectations, this still represents a $51,000 increase over Q1-2018. Revenue
performance this quarter is driven by lower than expected transportation impact fees; this is
expected to change significantly in April due to the receipt of nearly $600,000 in traffic impact
fee revenue from the Young’s Market truck warehouse and distribution center. Additionally, a
transfer-in of approximately $400,000 is expected in May to pay for traffic mitigations fees
related to the Legacy Senior Housing Project and the Auburn Town Center.
Expenditures were significantly below budget due to the timing of capital projects funded by
these revenues. Parks impact fees are planned to fund three projects with at least $500,000 of
budgeted expenditures (Game Farm Park Improvements, Downtown Auburn Arts Center, and
104th Avenue Master Plan).
Fund 124 - Mitigation Fees
Summary of Sources and Uses
Report Period Through:Ending Ending
March 2019 Fund Balance Fund Balance
Transportation Impact Fees 800,000$ 545,350$ 5,381,801$ 50,130$ 1,504$ 5,175,778$
Transportation Migitation Fees - - 67,905 - - 67,905
Fire Impact Fees 100,000 75,000 212,773 1,451 - 189,224
Fire Mitigation Fees - - 81 - - 81
Parks Impact Fees 100,000 2,055,000 3,086,936 17,500 - 5,059,436
Parks Mitigation Fees - 300,000 40,702 - - 340,702
School Impact Admin Fees 1,200 - 58,515 282 - 57,597
Wetland Mitigation Fees - 5,000 33,861 - - 38,861
Interest and Investment Income 195,000 - 195,000 71,613 - 71,613
Fees in Lieu of Improvements - - 24,413 - - 24,413
Operating Transfers-In - - - - - -
Total 1,196,200$ 2,980,350$ 9,101,987$ 140,976$ 1,504$ 11,025,609$
Beginning Fund Balance, January 2019 10,886,137$
Net Change in Fund Balance, March 2019 139,472
Ending Fund Balance, March 2019 11,025,609$
2019 Budgeted Ending Fund Balance 9,101,987$
YTD ACTUALSBUDGET
Revenues ExpendituresRevenuesExpenditures
30 Page 93 of 142
Quarterly Financial Report Through Q1-2019 31
Enterprise Funds
Detailed income and expense statements for Enterprise and Internal Service funds can be
found in an attachment at the end of this report. The attachment provides 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.
Starting in January 2019, all City utilities transitioned to a monthly usage billing schedule;
previously, usage was only included in bimonthly billings for most customers. In order to
facilitate this change, utility billing for services provided through December 2018 occurred in
January 2019 and included additional days in most billing cycles. This resulted in higher than
normal fourth quarter billings, and also a larger than usual proportion of billing revenue being
accrued back to 2018 from January 2019 billings. Therefore, Q1-2019 revenues are lower than
they would have been had the billing cycles remained unmodified. This is expected to be a one-
time variance, and is generally offset by the changes to utility rates effective January 1, 2019.
In Q1-2019 the Water Utility had operating income before depreciation of $1.3 million as
compared with $1.2 million during Q1-2018. Total Water Fund operating revenues are $76,000
higher than in Q1-2018, mainly due to strong performance in water sales and interest income.
Water sales revenue is directly impacted by the rate changes, which implemented rate
increases across all water consumption categories. Operating expenditures in Q1-2019 are
tracking closely with Q1-2018 expenditures, having increased by only $33,000 or 1.7% across
the entire fund.
Water sales by volume in Q1-2019 totaled 600,000 hundred cubic feet (ccf), as compared to
616,000 ccf in Q1-2018. Although Water revenue is up due to changes in rate structures,
billable water consumption is down by 2.6%. For many years, the Water utility has seen a
general trend of decreased year-over-year 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 take-or-pay agreement expired and the Interlocal Agreement was
amended at the end of 2016. And as noted above, the Q4-2018 billings saw increased
consumption amounts due to additional days being included in the billing cycle. Some of this
billing would previously have been included in the Q1-2019 amounts; since these were instead
included in Q4-2018, consumption for Q1-2019 is commensurately lower.
31 Page 94 of 142
Quarterly Financial Report Through Q1-2019 32
The Sewer Utility finished Q1-2019 with operating income before depreciation of $892,000 as
compared to operating income of $557,000 in Q1-2018. Operating revenues were higher than
projected due to increased charges for City sewer service following the rate adjustment, as well
as a $203,000 refund from the Department of Revenue for overpayment of excise tax.
Expenditures in the Sewer Utility have increased by $46,000 over Q1-2018, largely due to
increased costs for employee benefits as well as tax payments. Although the dollar amount of
expenditures has increased, the percentage of annual expenditure budget used is less than 1%
different from Q1-2018 (19.88% of budget used, versus 19.17% in Q1-2018). First quarter
budget usage has remained consistent for the last several years with the exception of Q1-2017,
which saw a large spike due to a transfer of cash from the Sewer Operations fund to the Sewer
Capital fund.
In Q1-2019, the Stormwater Utility had operating income before depreciation of $857,000
compared with $773,000 in Q1-2018. Overall revenues are up $63,000 due to charges for City
storm service, as well as strong investment income performance.
Expenditures in the Stormwater Utility are down $51,000 from Q1-2018, contributing to the
higher operating income noted above. Expenses for supplies are down $9,000, while services
and intergovernmental payments combined are down $31,000 from Q1-2018.
In Q1-2019 the Solid Waste Utility Fund had $3.9 million in operating revenues, compared to
$3.7 million in operating expenditures. 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 March 2019, Waste Management serviced 15,493 customers (79% of
customers) and Republic Services serviced 4,128 customers (21% of customers).
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
$2,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CCFThousandsWater Revenues vs Water Sold
2019 vs 2018
2018 Water Sales ($)
2019 Water Sales ($)
2018 Water Sold (ccf)
2019 Water Sold (ccf)
32 Page 95 of 142
Quarterly Financial Report Through Q1-2019 33
The current mix of solid waste customer account types is:
• 90% Residential
• 8% Commercial
• 2% 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 Q1-2019, the total diversion rate was
25.4%, which represents a total of 4,100 tons of waste that was diverted from landfills.
2019 Tons Collected and Diversion Rates:
44%
21%
Garbage-
2,615 tons
(56.2%)
Yard Waste-
1,049 tons
(22.5%)
Recycling-
991 tons
(21.3%)
Q1-2019 Residential Waste Stream
Garbage
Yard Waste
Recycling
Garbage-
1,794 tons
(79.5%)
Yard Waste-
87 tons
(3.9%)
Recycling-
376 tons
(16.6%)
Q1 -2019 Multifamily Waste Stream
Garbage
Yard Waste
Recycling
Total: 2,257 tons collected
Diversion Rate: 21%
Total: 4,655 tons collected
Diversion Rate: 44%
17%
e: 25%
Garbage-
7,541 tons
(82.9%)
Yard Waste-
30 tons
(0.3%)
Recycling-
1,527 tons
(16.8%)
Q1-2019 Commercial Waste Stream
Garbage
Yard Waste
Recycling
Total: 9,099 tons collected
Diversion Rate: 17%
Garbage -
11,951 tons
(74.6%)
Yard Waste -
1,166 tons
(7.3%)
Recycling-
2,894 tons
(18.1%)
Q1-2019 Total Waste Stream
Garbage
Yard Waste
Recycling
Total: 16,011 tons collected
Diversion Rate: 25%
33 Page 96 of 142
Quarterly Financial Report Through Q1-2019 34
Of the total tonnage collected in Q1-2019, 29% was collected from residential customers, 14%
from multifamily customers, and 57% from commercial customers, as shown in the following
graph.
In Q1-2019, the Cemetery Fund experienced operating income of $51,000 as compared with
an operating income of $134,000 in Q1-2018. This variance is mainly due to decreased lot and
marker sales thus far in 2019.
6,016
4,562
5,433
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecTonnageSolid Waste Tonnage by Customer Type
Residential Multifamily Commercial
$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
2019 YTD Budget
Revenue
2019 YTD Actual
Revenue
2018 YTD Actual
Revenue
2019 YTD Actual
Expenses
Cumulative Revenues & Expenditures
2019 Budget vs. Actual
34 Page 97 of 142
Quarterly Financial Report Through Q1-2019 35
Internal Service Funds
Operating expenditures within the Insurance Fund represent the premium cost pool that will be
allocated monthly to other City funds over the course of 2019. As a result, the expenditure
balance gradually diminishes each month throughout the year.
No significant variances are reported in the Workers’ Compensation, Facilities, Innovation &
Technology, or Equipment Rental Funds.
P-Card Statistics
The City has been actively promoting the use of P-Cards in lieu of purchase orders to minimize
effort and maximize incentive payments from the vendor and the State. In Q1-2019, 3,899
P-Card transactions were processed as compared with 1,087 purchase order transactions.
Total incentive payments received from US Bank in Q1-2019 totaled $22,615. These are
estimated payments since the quarterly rebate checks are not actually received until the next
quarter. Additionally, there is an annual incentive payment from the State that is received in Q2
of each year. The annual State incentive payment for 2018 was $27,723 and was received in
April of 2019.
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.
Purchase Order and PCard Transactions
Q1 2018 and Q1 2019
921 1,087
3,924 3,899
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2018 2019 2018 2019
Purchase
Order
Transactions
PCard
Transactions
$21,756 $22,615
2018 2019
PCard
Incentives
Received
(see text)
35 Page 98 of 142
Investment Purchase Book Maturity Yield to
Type Date Value Date Maturity
State Investment Pool Various 97,428,352$ Various 2.52%
KeyBank Money Market Various 5,805,963 Various 0.15%
OpusBank Public Interest Acct Various 10,281,141 Various 2.59%
FHLB 2/28/2018 2,001,840 2/28/2023 2.65%
FFCB 5/21/2018 1,997,160 10/21/2019 2.48%
FAMCA 6/27/2018 1,999,940 7/16/2020 2.50%
FFCB 7/16/2018 2,000,620 7/16/2020 2.60%
TX ST-BABs-A 8/8/2018 1,761,620 4/1/2020 2.68%
FFCB 8/27/2018 2,004,660 2/23/2021 2.70%
RFCSP 10/5/2018 5,032,674 10/15/2019 2.69%
RFCSP 12/14/2018 5,012,902 7/15/2020 2.73%
RFCSP 2/19/2019 4,999,824 1/15/2021 2.52%
Total Cash & Investments 140,326,695$ 2.449%
Investment Mix % of Total
State Investment Pool 69.4%Current 6-month treasury rate 2.51%
KeyBank Money Market 4.1%Current State Pool rate 2.52%
OpusBank Public Interest Acct 7.3%KeyBank Money Market 0.15%
FHLB 1.4%OpusBank Public Interest Acct 2.59%
FFCB 4.3%Blended Auburn rate 2.45%
FAMCA 1.4%
TX ST-BABs-A 1.3%
RFCSP 10.7%
100.0%
City of Auburn
Investment Portfolio Summary
March 31, 2019
Summary
36
Page 99 of 142
SALES TAX SUMMARY
MARCH 2019 SALES TAX DISTRIBUTIONS (FOR JANUARY 2019 RETAIL ACTIVITY)
2018 Annual Total 2018 YTD 2019 YTD YTD 2018 Annual Total 2018 YTD 2019 YTD YTD
NAICS CONSTRUCTION (Nov '17-Oct '18)(Nov '17-Jan -18)(Nov '18-Jan 19)% Diff NAICS AUTOMOTIVE (Nov '17-Oct '18)(Nov '17-Jan -18)(Nov '18-Jan 19)% Diff
236 Construction of Buildings 1,257,918 370,471 229,057 -38.2%441 Motor Vehicle and Parts Dealer 3,843,704 937,343 909,857 -2.9%
237 Heavy and Civil Construction 170,543 31,653 30,833 -2.6%447 Gasoline Stations 278,087 71,731 68,599 -4.4%
238 Specialty Trade Contractors 881,157 221,297 218,736 -1.2%TOTAL AUTOMOTIVE 4,121,791$ 1,009,073$ 978,456$ -3.0%
TOTAL CONSTRUCTION 2,309,617$ 623,421$ 478,627$ -23.2%Overall Change from Previous Year (30,618)$
Overall Change from Previous Year (144,794)$
2018 Annual Total 2018 YTD 2019 YTD YTD
2018 Annual Total 2018 YTD 2019 YTD YTD NAICS RETAIL TRADE (Nov '17-Oct '18)(Nov '17-Jan -18)(Nov '18-Jan 19)% Diff
NAICS MANUFACTURING (Nov '17-Oct '18)(Nov '17-Jan -18)(Nov '18-Jan 19)% Diff 442 Furniture and Home Furnishings 209,879 58,930 58,187 -1.3%
311 Food Manufacturing 7,745 1,138 1,332 17.0%443 Electronics and Appliances 229,028 62,268 73,485 18.0%
312 Beverage and Tobacco Products 12,379 3,579 3,255 -9.1%444 Building Material and Garden 576,468 120,424 135,866 12.8%
313 Textile Mills 559 195 111 -43.2%445 Food and Beverage Stores 387,928 95,309 97,453 2.2%
314 Textile Product Mills 1,860 239 1,049 338.8%446 Health and Personal Care Store 420,087 104,997 117,213 11.6%
315 Apparel Manufacturing 347 45 149 231.3%448 Clothing and Accessories 1,170,083 335,926 328,620 -2.2%
316 Leather and Allied Products 221 17 81 366.3%451 Sporting Goods, Hobby, Books 220,869 59,356 72,412 22.0%
321 Wood Product Manufacturing 16,224 3,981 2,113 -46.9%452 General Merchandise Stores 870,096 303,944 238,772 -21.4%
322 Paper Manufacturing 12,982 1,901 3,569 87.7%453 Miscellaneous Store Retailers 689,386 156,904 229,538 46.3%
323 Printing and Related Support 46,020 14,284 10,605 -25.8%454 Nonstore Retailers 267,088 98,293 63,201 -35.7%
324 Petroleum and Coal Products 9,780 3,827 1,934 -49.5%TOTAL RETAIL TRADE 5,040,912$ 1,396,352$ 1,414,748$ 1.3%
325 Chemical Manufacturing 12,512 1,932 1,696 -12.2%Overall Change from Previous Year 18,396$
326 Plastics and Rubber Products 8,844 2,251 1,611 -28.4%
327 Nonmetallic Mineral Products 21,776 3,678 4,797 30.4%
331 Primary Metal Manufacturing 4,065 374 2,902 676.7%2018 Annual Total 2018 YTD 2019 YTD YTD
332 Fabricated Metal Product Manuf 26,115 6,065 8,490 40.0%NAICS SERVICES (Nov '17-Oct '18)(Nov '17-Jan -18)(Nov '18-Jan 19)% Diff
333 Machinery Manufacturing 24,283 5,733 6,473 12.9%51*Information 637,625 171,971 180,270 a 4.8%
334 Computer and Electronic Product 7,184 1,415 1,179 -16.7%52*Finance and Insurance 140,135 36,056 34,212 -5.1%
335 Electric Equipment, Appliances 791 289 111 -61.6%53*Real Estate, Rental, Leasing 367,824 101,573 128,624 26.6%
336 Transportation Equipment Man 488,093 103,628 101,977 -1.6%541 Professional, Scientific, Tech 253,684 66,138 77,320 16.9%
337 Furniture and Related Products 19,899 4,798 6,622 38.0%551 Company Management 16 2 12 473.5%
339 Miscellaneous Manufacturing 32,607 9,683 9,837 1.6%56*Admin. Supp., Remed Svcs 423,760 86,053 131,909 53.3%
TOTAL MANUFACTURING 754,285$ 169,053$ 169,895$ 0.5%611 Educational Services 47,224 11,299 9,872 -12.6%
Overall Change from Previous Year 842$ 62*Health Care Social Assistance 93,420 23,734 26,617 12.1%
71*Arts and Entertainment 119,180 27,058 21,318 -21.2%
72*Accommodation and Food Svcs 1,435,327 339,042 351,514 3.7%
2018 Annual Total 2018 YTD 2019 YTD YTD 81*Other Services 560,054 137,544 146,829 6.8%
NAICS TRANSPORTATION AND WAREHOUSING (Nov '17-Oct '18)(Nov '17-Jan -18)(Nov '18-Jan 19)% Diff 92*Public Administration 150,574 43,513 485 -98.9%
481 Air Transportation 3 0 0 N/A TOTAL SERVICES 4,228,822$ 1,043,983$ 1,108,980$ 6.2%
482 Rail Transportation 25,453 3,058 6,359 108.0%Overall Change from Previous Year 64,997$
484 Truck Transportation 26,564 676 4,238 526.6%
485 Transit and Ground Passengers 56 34 18 -45.5%
488 Transportation Support 52,211 11,143 9,593 -13.9%2018 Annual Total 2018 YTD 2019 YTD YTD
491 Postal Service 1,007 81 201 147.9%NAICS MISCELLANEOUS (Nov '17-Oct '18)(Nov '17-Jan -18)(Nov '18-Jan 19)% Diff
492 Couriers and Messengers 1,359 731 125 -82.9%000 Unknown 0 0 0 N/A
493 Warehousing and Storage 13,554 4,156 3,042 -26.8%111-115 Agriculture, Forestry, Fishing 3,656 1,117 1,694 51.7%
TOTAL TRANSPORTATION 120,208$ 19,879$ 23,577$ 18.6%211-221 Mining & Utilities 26,370 5,167 5,659 9.5%
Overall Change from Previous Year 3,698$ 999 Unclassifiable Establishments 123,605 16,536 51,593 212.0%
TOTAL SERVICES 153,632$ 22,820$ 58,947$ 158.3%
Overall Change from Previous Year 36,127$
2018 Annual Total 2018 YTD 2019 YTD YTD
NAICS WHOLESALE TRADE (Nov '17-Oct '18)(Nov '17-Jan -18)(Nov '18-Jan 19)% Diff
423 Wholesale Trade, Durable Goods 1,147,872 326,801 269,095 -17.7%GRAND TOTAL 18,198,285$ 4,683,713$ 4,579,062$
424 Wholesale Trade, Nondurable 315,956 71,759 75,464 5.2%Overall Change from Previous Year (104,651)$ -2.2%
425 Wholesale Electronic Markets 5,189 573 1,274 122.2%
TOTAL WHOLESALE 1,469,017$ 399,133$ 345,833$ -13.4%Total March 2019 Sales Tax Distributions 1,374,764$
Overall Change from Previous Year (53,300)$ Dollar Increase from March 2018 5,437$
Percent Increase from March 2018
Comparisons:
Includes Adjustments in excess of +/- $10,000.March 2018 4,683,713 3,314,386 1,369,327$
a. WA State Department of Revenue audit adjustment to sales tax returns for February 2019 Reporting (adjustment: $14,165).March 2017 4,389,521 3,053,729 1,335,792$
03/25/19
Prepared by Auburn Finance Department
0.4%
37
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Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance
OPERATING FUND:460 460 461 461 462 462
OPERATING REVENUES
Charges For Service 15,471,500 3,193,584 (12,277,916) 9,014,200 2,213,908 (6,800,292) 18,370,000 4,485,856 (13,884,144) 10,085,900 2,498,290 (7,587,610)
Grants - - - - - -
Interest Earnings 20,000 54,249 34,249 20,000 32,827 12,827 2,500 8,438 5,938 15,000 30,737 15,737
Rents, Leases, Concessions, & Other 187,000 7,891 (179,109) 70,000 202,632 132,632 - - - 56,000 476 (55,524)
TOTAL OPERATING REVENUES 15,678,500 3,255,724 (12,422,776) 9,104,200 2,449,367 (6,654,833) 18,372,500 4,494,294 (13,878,206) 10,156,900 2,529,503 (7,627,397)
OPERATING EXPENSES
Salaries & Wages 2,472,136 588,864 1,883,272 1,478,205 358,642 1,119,563 - - - 2,511,990 568,754 1,943,236
Benefits 1,335,528 306,434 1,029,094 783,349 186,202 597,147 - - - 1,329,580 296,072 1,033,508
Supplies 364,244 61,153 303,091 164,550 27,120 137,430 - - - 84,550 24,896 59,654
Other Service Charges 4,355,849 592,217 3,763,632 2,912,150 637,428 2,274,722 18,215,600 4,339,510 13,876,090 1,994,100 327,684 1,666,416
Intergovernmental Services (Less Transfers Out)- - - - - -
Waste Management Payments See Note
Sewer Metro Services - - -
Debt Service Interest 1,092,600 - 1,092,600 245,500 - 245,500 - - - 311,100 - 311,100
Interfund Operating Rentals & Supplies 1,773,617 443,404 1,330,213 1,391,917 347,979 1,043,938 - - - 1,818,400 454,600 1,363,800
TOTAL OPERATING EXPENSES 11,393,974 1,992,072 9,401,902 6,975,671 1,557,372 5,418,299 18,215,600 4,339,510 13,876,090 8,049,720 1,672,006 6,377,714
OPERATING REVENUES LESS EXPENSES
BEFORE DEPRECIATION 4,284,526 1,263,652 (3,020,874) 2,128,529 891,995 (1,236,534) 156,900 154,784 (2,116) 2,107,180 857,497 (1,249,683)
NON-OPERATING REVENUES
Operating Transfers-in - - -
Intergovernmental Loan - 16,633 (16,633)
Other Non-Operating Revenues -
NON-OPERATING EXPENSES
Transfer to Capital Subfund 811,400 16,633 794,767 - - - - - -
Other Operating Transfers-out 353,291 2,125 351,166 303,592 2,125 301,467 377,592 76,125 301,467
Debt Service Principal 1,775,400 - 1,775,400 563,400 - 563,400 438,000 - 438,000
Net Change in Restricted Net Assets - 44,513 44,513 - 1,777 1,777 - - -
Interfund Loan Repayment
BEGINNING WORKING CAPITAL - January 1, 2019 3,787,175 3,787,175 - 4,267,149 4,267,149 - 3,184,467 3,184,467 - 2,859,814 2,859,814 -
ENDING WORKING CAPITAL - March 31, 2019 5,131,610 5,004,189 (127,421) 5,528,686 5,155,242 (373,444) 3,341,367 3,339,251 (2,116) 4,151,402 3,641,186 (510,216)
NET CHANGE IN WORKING CAPITAL (see Note)1,344,435 1,217,014 (127,421) 1,261,537 888,093 (373,444) 156,900 154,784 (2,116) 1,291,588 781,372 (510,216)
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue 10,000 11,936 1,936 80,000 81,238 1,238 80,000 35,400 (44,600)
Grants 100,000 - (100,000) - - -
Contributions - - - - - - -
Other Non-Operating Revenue - - - - - - - - -
Increase In Contributions - System Development 937,700 116,691 (821,009) 654,700 394,427 (260,273) 489,900 38,923 (450,977)
Interfund Revenues - - - - - - - - -
Increase In Contributions - FAA - - - - - - - - -
Proceeds of Debt Activity 7,178,300 - (7,178,300) - - - - - -
Transfers In from Operating Sub-Fund 811,400 16,633 (794,767) - - - - - -
Transfer In from Other Funds - - - - - - - -
TOTAL CAPITAL REVENUES 9,037,400 145,260 (8,892,141) 734,700 475,666 (259,034) 569,900 74,324 (495,576)
CAPITAL EXPENSES
Other Non-Operating Expense - - - - - - - - -
Increase In Fixed Assets - Salaries 424,300 57,751 366,549 182,900 10,560 172,340 202,900 13,911 188,989
Increase In Fixed Assets - Benefits 169,700 27,306 142,394 73,100 5,405 67,695 81,100 6,501 74,599
Increase In Fixed Assets - Services 300 - 300 1,900 - 1,900 1,900 - 1,900
Increase In Fixed Assets - Site Improvements - 1,085 (1,085) - - - - -
Increase In Fixed Assets - Equipment - -- - - - - - -
Increase In Fixed Assets - Construction 5,968,386 32,831 5,935,555 2,588,000 2,805 2,585,195 2,861,000 48,204 2,812,796
Operating Transfers Out 50,000 50,000 - 50,000 50,000 - 50,000 50,000 -
TOTAL CAPITAL EXPENSES 6,612,686 168,973 6,443,713 2,895,900 68,770 2,827,130 3,196,900 118,616 3,078,284
BEGINNING WORKING CAPITAL - January 1, 2019 138,010 138,010 - 11,210,691 11,210,691 - 13,328,488 13,328,488 -
2,562,724 114,296 (2,448,428) 9,049,491 11,617,587 2,568,096 10,701,488 13,284,196 2,582,708
NET CHANGE IN WORKING CAPITAL (see Note)2,424,714 (23,714) (2,448,428) (2,161,200) 406,896 2,568,096 (2,627,000) (44,292) 2,582,708
Total Change in Working Capital 3,769,149 1,193,300 (2,575,849) (899,663) 1,294,988 2,194,651 156,900 154,784 (2,116) (1,335,412) 737,080 2,072,492
(*) Depreciation 3,612,800 992,049 2,333,400 571,854 - - 2,184,100 526,865
OPERATING & CAPITAL FUNDS
WATER
ENTERPRISE FUNDS
SEWER SEWER METRO STORMCash Basis through March 2019
(*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures; payments will be made as scheduled in December 2019. Working Capital = Current Assets
minus Current Liabilities
ENDING WORKING CAPITAL - March 31, 2019
38
Page 101 of 142
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 See Note
Sewer Metro Services
Debt Service Interest
Interfund Operating Rentals & Supplies
TOTAL OPERATING EXPENSES
OPERATING REVENUES LESS EXPENSES
BEFORE DEPRECIATION
NON-OPERATING REVENUES
Operating Transfers-in
Intergovernmental Loan
Other Non-Operating Revenues
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, 2019
ENDING WORKING CAPITAL - March 31, 2019
NET CHANGE IN WORKING CAPITAL (see Note)
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue
Grants
Contributions
Other Non-Operating Revenue
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
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, 2019
NET CHANGE IN WORKING CAPITAL (see Note)
Total Change in Working Capital
(*) Depreciation
OPERATING & CAPITAL FUNDS
Cash Basis through March 2019
Working Capital = Current Assets
minus Current Liabilities
ENDING WORKING CAPITAL - March 31, 2019
Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance
464 464 465 465 466 466 -
16,071,700 3,869,022 (12,202,678) 1,205,700 325,156 (880,544) 1,086,000 339,098 (746,902) - - -
88,600 - (88,600) - - - - -
88,800 27,926 (60,874) 6,900 5,839 (1,061) 1,000 4,601 3,601 21,000 5,434 (15,566)
- 2,753 2,753 6,000 2,281 (3,719) - - -
16,249,100 3,899,702 (12,349,399) 1,218,600 333,276 (885,324) 1,087,000 343,699 (743,301) 21,000 5,434 (15,566)
- - - 207,803 52,798 155,005 464,932 107,345 357,587 - - -
- - - 149,490 33,816 115,674 269,930 64,554 205,376 175,000 15,581 159,419
53,400 183 53,217 202,200 79,930 122,270 221,700 61,106 160,594 - - -
2,123,775 326,658 1,797,117 173,800 46,144 127,656 151,500 20,484 131,016 5,600 918,240 (912,640)
- - - - - - - - - - - -
13,485,300 3,217,403 10,267,897
- - - 3,700 312 3,388 - - - - - -
612,000 153,000 459,000 70,000 9,650 60,350 155,900 38,975 116,925 - - -
16,274,475 3,697,244 12,577,231 806,993 222,651 584,342 1,263,962 292,464 971,498 180,600 933,821 (753,221)
(25,375) 202,458 227,833 411,607 110,626 (300,981) (176,962) 51,235 228,197 (159,600) (928,386) (768,786)
100,000 - (100,000) - - -
100,000 -
21,831 531 21,300 360,000 - 360,000 - - -
186,500 - 186,500 - - -
- 2,137 2,137 - - -
42,100 10,339 31,761
5,556,175 5,556,175 - 434,633 434,633 - 441,060 441,060 - 1,928,070 1,928,070 -
5,508,969 5,758,102 249,133 257,640 532,783 275,143 264,098 492,295 228,197 1,768,470 999,684 (768,786)
(47,206) 201,927 249,133 (176,993) 98,150 275,143 (176,962) 51,235 228,197 (159,600) (928,386) (768,786)
2,000 943 (1,057) - 1,520 1,520
91,700 (6) (91,706) - - -
- - -- - -
- - -- - -
- - -- - -
1,650,000 - (1,650,000) - - -
- - -- - -
- - -100,000 - (100,000)
350,000 - (350,000) 33,000 - (33,000)
2,093,700 937 (2,092,763) 133,000 1,520 (131,480)
- - - - - -
4,300 57 4,243 - - -
1,700 41 1,659 - - -
100 - 100 100 - 100
- - - -
- - - -
2,097,400 62,766 2,034,634 358,000 - 358,000
37,000 - 37,000 - - -
2,140,500 62,864 2,077,636 358,100 - 358,100
146,405 146,405 - 261,037 261,037 -
99,605 84,478 (15,127) 35,937 262,557 226,620
(46,800) (61,927) (15,127) (225,100) 1,520 226,620
(47,206) 201,927 (223,793) 36,223 260,016 (402,062) 52,755 454,817 (159,600) (928,386) (768,786)
19,900 4,705 490,300 106,353 45,000 8,275 - -
Note: Includes March's Waste Management
payment ($1,100,356), which will be made in April.
(*) Debt service interest as shown represents actual cash outlay. Debt service principal represents actual expenditures;
payments will be made as scheduled in December 2019.
ENTERPRISE FUNDS
SOLID WASTE AIRPORT CEMETERY
INTERNAL SERVICE FUNDS
INSURANCE
see Note
39
Page 102 of 142
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 See Note
Sewer Metro Services
Debt Service Interest
Interfund Operating Rentals & Supplies
TOTAL OPERATING EXPENSES
OPERATING REVENUES LESS EXPENSES
BEFORE DEPRECIATION
NON-OPERATING REVENUES
Operating Transfers-in
Intergovernmental Loan
Other Non-Operating Revenues
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, 2019
ENDING WORKING CAPITAL - March 31, 2019
NET CHANGE IN WORKING CAPITAL (see Note)
CAPITAL FUND:
CAPITAL REVENUES
Interest Revenue
Grants
Contributions
Other Non-Operating Revenue
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
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, 2019
NET CHANGE IN WORKING CAPITAL (see Note)
Total Change in Working Capital
(*) Depreciation
OPERATING & CAPITAL FUNDS
Cash Basis through March 2019
Working Capital = Current Assets
minus Current Liabilities
ENDING WORKING CAPITAL - March 31, 2019
Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance Budget
YTD
Actual Variance
- - 568 568 560 560
1,075,200 254,795 (820,406) 3,467,900 868,772 (2,599,128) 6,269,100 1,570,431 (4,698,669) 2,007,606 501,902 (1,505,704)
- - - - - -
46,000 13,246 (32,754) 24,600 12,054 (12,546) 8,000 16,608 8,608 - 19,197 19,197
50,000 3,424 (46,576) - - - - - - - 3,350 3,350
1,171,200 271,465 (899,735) 3,492,500 880,826 (2,611,674) 6,277,100 1,587,038 (4,690,062) 2,007,606 524,449 (1,483,157)
- - - 728,510 165,530 562,980 2,070,555 482,153 1,588,402 604,034 159,796 444,238
250,000 38,633 211,367 424,233 95,587 328,646 1,072,035 233,919 838,116 324,807 77,639 247,168
- - - 140,220 27,245 112,975 463,150 61,454 401,696 987,400 198,949 788,451
448,315 113,758 334,557 1,761,950 299,508 1,462,442 2,648,900 754,533 1,894,367 493,050 98,622 394,428
- - - - - - - - - - - -
- - - - - - - - - 2,700 487 2,213
119,800 29,950 89,850 159,700 39,925 119,775 183,000 45,750 137,250 291,600 72,900 218,700
818,115 182,341 635,774 3,214,613 627,794 2,586,819 6,437,640 1,577,809 4,859,831 2,703,591 608,394 2,095,197
353,085 89,124 (263,961) 277,887 253,032 (24,855) (160,540) 9,230 169,770 (695,985) (83,945) 612,040
40,000 - (40,000) 152,010 - (152,010) - - -
679,950 - 679,950 - - - - - -
- - -
- - - - - - - - -
2,128,988 2,128,988 - 1,412,874 1,412,874 - 2,573,504 2,573,504 - 3,091,626 3,091,626 -
2,482,073 2,218,112 (263,961) 1,050,811 1,665,906 615,095 2,564,974 2,582,734 17,760 2,395,641 3,007,681 612,040
353,085 89,124 (263,961) (362,063) 253,032 615,095 (8,530) 9,230 17,760 (695,985) (83,945) 612,040
- 9,185 9,185 - 24,027 24,027
- - - - - -
- - - - - -
- - - - - -
- - - 1,771,194 442,799 (1,328,395)
- - - - - -
- - - - - -
- - - - - -
- - - 970,800 - (970,800)
- 9,185 9,185 2,741,994 466,826 (2,275,168)
- - - - - -
- 1,642 (1,642) - - -
- 616 (616) - - -
300 - 300 500 - 500
- -
849,000 - 849,000 2,013,950 58,320 1,955,630
20,000 - 20,000 1,088,000 - 1,088,000
- - - - - -
869,300 2,258 867,042 3,102,450 58,320 3,044,130
1,169,997 1,169,997 - 3,663,110 3,663,110 -
300,697 1,176,925 876,228 3,302,654 4,071,616 768,962
(869,300) 6,928 876,228 (360,456) 408,506 768,962
353,085 89,124 (263,961) (362,063) 253,032 615,095 (877,830) 16,157 893,987 (1,056,441) 324,561 1,381,002
- - - - 500,000 97,923 1,250,000 274,103
INTERNAL SERVICE FUNDS
WORKER'S COMPENSATION FACILITIES INNOVATION & TECHNOLOGY EQUIPMENT RENTAL
40
Page 103 of 142
AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6720 (Coleman) (15 Minutes)
Date:
June 18, 2019
Department:
Finance
Attachments:
Memo
Ordinance No. 6720
Schedule A
Schedule B
Budget Impact:
Administrativ e Recommendation:
City Council to introduce and adopt Ordinance No. 6720.
Background Summary:
Ordinance No. 6720 (Budget Amendment #3) amends the 2019-2020 Revised Budget as
presented in the attached transmittal memorandum and supporting attachments.
The proposed budget amendment has been revised to reflect updated working capital
balance adjustments for enterprise and internal service funds.
Rev iewed by Council Committees:
Councilmember:Staff:Coleman
Meeting Date:June 24, 2019 Item Number:
Page 104 of 142
Interoffice Memorandum
To: City Council
From: Shelley Coleman, Finance Director
CC: Nancy Backus, Mayor
Date: June 19, 2019
Re: Ordinance #6720 – 2019-2020 Budget Amendment #3
Budget Amendment #3 is the third amendment of the City of Auburn’s 2019-2020 biennial budget. The main
purpose of this budget amendment is to adjust budgeted 2019 beginning fund balances to match actual 2018
ending fund balances per accounting records. Additional items included in this amendment are recognition
of new revenue, either grants or transfers in from other supporting funds, requests for additional budget
authority for projects and removal of discontinued programs. To identify requested changes to each fund,
please refer to the accompanying Schedule A, Summary of 2019 Budget Adjustments by Fund.
This budget amendment has been revised to reflect updated working capital balance adjustments for
enterprise and internal service funds.
Fund Balance Adjustments: This amendment adjusts City-wide 2019 budgeted beginning fund
balances to reflect actual ending balances as of the end of 2018. City-wide beginning fund balances
are adjusted by a net increase of $10.4 million.
Revenue Adjustments: This amendment recognizes new grants and updated revenue projections,
including:
• Federal grant for Auburn Way South widening project (cp1622) $ 1,297,500
• Increase in projected property tax revenues 275,000
• Increase MIT casino emergency service revenues 370,000
• Interlocal grant funding for a third school resource officer (from ASD) 60,000
• WSDOE grant to complete the City's shoreline master plan 15,400
• WA Assoc. of Sheriffs & Police Chiefs grant for a speed feedback sign 3,500
• Geocaching Event grant (from Fund 104) 1,100
TOTAL $ 2,022,500
Page 105 of 142
Funding Adjustments: Funding adjustment requests included in this budget amendment increase or
decrease spending authority for existing programs. Significant funding adjustment requests include:
• Funding to replace lead service lines: Due to the availability of a low-interest loan from the
Drinking Water State Revolving Fund (DWSRF), the City can accelerate its plan to replace
lead service lines and associated water mains. The authorized loan amount is $3,000,000.
The availability of these funds also means a planned $100,000 State grant and $50,000 in
Water capital fund balance will not be utilized for this project.
• Budget for DWSRF loan: In 2018, the City was awarded a DWSRF loan for $1,340,000 for the
Coal Creek Springs transmission replacement project. During design, it was determined that
the current approach was infeasible, and the loan was converted to pre-construction costs only
in the amount of $300,000. The change also affects $347,000 in interfund loans and
$1,030,200 in Water capital fund balance that are no longer needed.
• LEOFF1 benefits (General Fund): This amendment reduces the 2019 budget for LEOFF1
benefits by $628,300 to better reflect historical actual expenditure levels. The adjustment
results in a higher General Fund ending fund balance.
• Salaries and Benefits for Second School Resource Officer (General Fund): This amendment
provides budget of $114,300 in 2019 for salaries and benefits associated with the school
resource officer that was added in 2018 in Budget Amendment #6 (Ordinance No. 6684). The
offsetting revenue from the Auburn School District is already incorporated into the 2019
budget.
• Budget for repairs to traffic signals caused by vehicular accidents: The City typically pays for
these repairs and is then reimbursed by insurance companies. This budget amendment
request, in the amount of $100,000, is offset by additional revenues.
• Budget for East Auburn access project. Through an agreement, the Muckleshoot Indian Tribe
(MIT) will reimburse the City’s cost of $100,000 to provide technical guidance and support to
MIT for this project, which is funded by WSDOT and led by MIT. The additional budget
requested includes $20,000 in consultant support costs and $80,000 in City labor and benefit
costs.
• Revised estimates for aviation fuel sales at the Auburn Airport: This amendment would update
the preliminary estimates made during budget development for expenditures and revenues
associated with the sale of aviation fuel (AVGas), increasing both revenues and expenditures
by $80,000.
• Funding for sidewalks on Auburn Way South: This requested budget amendment would
provide $75,000 in additional budget for the project that is needed to cover the cost of
additional design and construction elements being required by WSDOT and anticipated
increases due to a regional increase in construction bids.
New Requests: Significant new funding requests include:
• 2020 Arterial Street Preservation project (Fund 105) $ 699,400
• Replace two message boards (Fund 560) 72,000
• Add third School Resource Officer (70% funded by ASD) 67,200
• Purchase a man-lift and trailer (Fund 560) 22,000
TOTAL $ 896,600
Page 106 of 142
The following table summarizes the current and revised budget as a result of this amendment.
Table 1: 2019 Budget as Amended
2019 Budget as Amended (through BA#2) $ 333,333,982
Budget Amendment #3 (Ord #6720) 18,829,533
Budget as Amended $ 352,163,515
Attachments:
1. Proposed Ordinance #6720 (Budget Amendment #3)
2. Summary of proposed 2019 budget adjustments by fund and department (Schedule A)
3. Summary of proposed changes to adopted 2019 budget by fund (Schedule B)
Page 107 of 142
-------------------------
Ordinance No. 6720
June 18, 2019
Page 1 of 3
ORDINANCE NO. 6720
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AMENDING ORDINANCE NO.
6693, THE 2019-2020 BIENNIAL OPERATING BUDGET
ORDINANCE, AS AMENDED BY ORDINANCE NO. 6712,
AUTHORIZING AMENDMENT TO THE CITY OF AUBURN
2019-2020 BUDGET AS SET FORTH IN SCHEDULE “A” AND
SCHEDULE “B”
WHEREAS, the Auburn City Council at its regular meeting of December 3,
2018, adopted Ordinance No. 6693 which adopted the City of Auburn 2019-2020
Biennial budget; and
WHEREAS, the Auburn City Council at its regular meeting of April 1, 2019,
adopted Ordinance No. 6712 (BA#1) which amended Ordinance No. 6693 which
adopted the City of Auburn 2019-2020 Biennial budget; and
WHEREAS, the Auburn City Council at its regular meeting of May 20, 2019,
adopted Ordinance No. 6719 (BA#2) which amended Ordinance No. 6712 which
amended the City of Auburn 2019-2020 Biennial budget; and
WHEREAS, the City of Auburn deems it necessary to appropriate additional
funds to the various funds of the 2019 budget as outlined in this Ordinance (BA#3);
and
WHEREAS, this Ordinance has been approved by one more than the majority
of all councilpersons in accordance with RCW 35A.34.200.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON DO ORDAIN AS FOLLOWS:
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Ordinance No. 6720
June 18, 2019
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Section 1. Amendment of the 2019-2020 Biennial Budget. The 2019-
2020 Biennial Budget of the City of Auburn is amended pursuant to Chapter 35A.34
RCW, to reflect the revenues and expenditures as shown on Schedule “A” attached
hereto and incorporated herein by reference. The Mayor of the City of Auburn,
Washington is hereby authorized to utilize revenue and expenditure amounts shown
on said Schedule “A” and Schedule “B”. A copy of said Schedule “A” and Schedule
“B” is on file with the City Clerk and available for public inspection.
Section 2. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 3. Severability. The provisions of this ordinance are declared to
be separate and severable. The invalidity of any clause, sentence, paragraph,
subdivision, section, or portion of this ordinance, or the invalidity of the application of
it to any person or circumstance, will not affect the validity of the remainder of this
ordinance, or the validity of its application to other persons or circumstances.
Section 4. Effective date. This Ordinance will 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
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Ordinance No. 6720
June 18, 2019
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ATTEST:
____________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Steven L. Gross, City Attorney
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Schedule A
Summary of 2019 Budget Adjustments by Fund
Budget Amendment #3 (Ordinance #6720)
A 10,456,133 8,457,800 7,877,488 11,036,445
Beg. Fund
Balance
2019
Revenues
2019
Expenditures
Ending Fund
Balance
General Fund (#001)
2019 Adopted Budget 18,037,042 72,145,986 77,788,165 12,394,863
Previous Budget Amendments 539,000 (27,700) 538,400 (27,100)
2019 Amended Budget 18,576,042 72,118,286 78,326,565 12,367,763
BA#3 (Ordinance #6720, Proposed):3,074,234 941,000 1,147,900 2,867,334
General Fund Revenues:
Increase budgeted property tax receipts to match long-term financial forecast - 275,000 - 275,000
Increase budgeted revenue from MIT for casino emergency services - 370,000 - 370,000
Community Development Department:
WSDOE grant to complete the City's shoreline master plan - 15,400 15,400 -
Budget for Crime Prevention Through Environ. Design training (w/ revenue offset)- 8,800 8,800 -
Police Department:
Continue funding for the second SRO (from 2018 BA#6; revenue already budgeted)- - 114,300 (114,300)
Budget for a third School Resource Officer 70% funded by ASD (no new FTEs)- 67,200 14,200 53,000
New grant from WA Assoc. of Sheriffs & Police Chiefs for a speed feedback sign - 3,500 3,500 -
Public Works Department:
Incr. budget to cover repairs to traffic signals damaged by vehicular accidents - 100,000 100,000 -
Add budget for East Auburn Access Project, to be funded by MIT - 100,000 20,000 80,000
Administration Department:
LTAC Board-approved grant to the City of Auburn for 2019 Geocaching Event - 1,100 - 1,100
Non-Departmental:
Reduce estimated LEOFF1 benefit expenditures to better reflect historical actuals - - (628,300) 628,300
Adjust beginning fund balance / eliminate contra account (underexpenditures)3,074,234 - 1,500,000 1,574,234
Revised 2019 Budget - Fund 001 21,650,276 73,059,286 79,474,465 15,235,097
ERROR: Detail ≠ Schedule A
ERROR: Transfers In ≠ Transfers Out
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Schedule A
Summary of 2019 Budget Adjustments by Fund
Budget Amendment #3 (Ordinance #6720)
A 10,456,133 8,457,800 7,877,488 11,036,445
Beg. Fund
Balance
2019
Revenues
2019
Expenditures
Ending Fund
Balance
ERROR: Detail ≠ Schedule A
ERROR: Transfers In ≠ Transfers Out
Arterial Street Fund (#102)
2019 Adopted Budget 1,492,777 1,633,100 1,781,400 1,344,477
Previous Budget Amendments and CIP Carry-Forwards 611,413 1,383,641 2,070,054 (75,000)
2019 Amended Budget 2,104,190 3,016,741 3,851,454 1,269,477
BA#3 (Ordinance #6720, Proposed):(41,819) 1,526,400 1,575,000 (90,419)
Adjust beginning fund balance (41,819) - - (41,819)
Incr funding for sidewalks on AWS (cp1705) due to WSDOT req'ts and cost incr - - 75,000 (75,000)
Funding for AWS widening proj. (cp1622; funded by grant and traffic impact fees)- 1,500,000 1,500,000 -
Correct contractor payment from 2018 (entered in F460 should have been F102)- 26,400 - 26,400
Revised 2019 Budget - Fund 102 2,062,371 4,543,141 5,426,454 1,179,058
Local Street Fund (#103)
2019 Adopted Budget 1,650,780 1,912,000 2,605,900 956,880
Previous Budget Amendments and CIP Carry-Forwards 899,476 - 899,476 -
2019 Amended Budget 2,550,256 1,912,000 3,505,376 956,880
BA#3 (Ordinance #6720, Proposed):249,701 - - 249,701
Adjust beginning fund balance 249,701 - - 249,701
Revised 2019 Budget - Fund 103 2,799,957 1,912,000 3,505,376 1,206,581
Hotel/Motel Tax Fund (#104)
2019 Adopted Budget 108,571 153,600 160,050 102,121
Previous Budget Amendments 6,650 - 41,650 (35,000)
2019 Amended Budget 115,221 153,600 201,700 67,121
BA#3 (Ordinance #6720, Proposed):82,454 - - 82,454
Adjust beginning fund balance 82,454 - - 82,454
LTAC Board-approved grant to the City of Auburn for 2019 Geocaching Event - - - -
104.00.557.300.41 PROFESSIONAL SERVICES (1,100)
104.00.597.300.55 OPERATING TRANSFERS OUT 1,100
Revised 2019 Budget - Fund 104 197,675 153,600 201,700 149,575
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Schedule A
Summary of 2019 Budget Adjustments by Fund
Budget Amendment #3 (Ordinance #6720)
A 10,456,133 8,457,800 7,877,488 11,036,445
Beg. Fund
Balance
2019
Revenues
2019
Expenditures
Ending Fund
Balance
ERROR: Detail ≠ Schedule A
ERROR: Transfers In ≠ Transfers Out
Arterial Street Preservation Fund (#105)
2019 Adopted Budget 1,582,337 2,959,320 3,172,240 1,369,417
Previous Budget Amendments and CIP Carry-Forwards 998,143 793,170 1,791,313 -
2019 Amended Budget 2,580,480 3,752,490 4,963,553 1,369,417
BA#3 (Ordinance #6720, Proposed):(536,021) 699,400 699,400 (536,021)
Adjust beginning fund balance (536,021) - - (536,021)
Transfer reserved REET funds for arterial street preservation projects (cp1926)- 699,400 699,400 -
Revised 2019 Budget - Fund 105 2,044,459 4,451,890 5,662,953 833,396
Drug Forfeiture Fund (#117)
2019 Adopted Budget 376,497 155,000 298,037 233,460
Previous Budget Amendments - - - -
2019 Amended Budget 376,497 155,000 298,037 233,460
BA#3 (Ordinance #6720, Proposed):80,697 - 9,400 71,297
Adjust beginning fund balance 80,697 - - 80,697
Increase salaries and benefits in the Drug Forfeiture Fund to reflect Police CBA - - 9,400 (9,400)
Revised 2019 Budget - Fund 117 457,194 155,000 307,437 304,757
Housing & Comm Develop Fund (#119)
2019 Adopted Budget 36,458 590,000 590,000 36,458
Previous Budget Amendments - 269,900 269,900 -
2019 Amended Budget 36,458 859,900 859,900 36,458
BA#3 (Ordinance #6720, Proposed):6,446 - - 6,446
Adjust beginning fund balance 6,446 - - 6,446
Revised 2019 Budget - Fund 119 42,904 859,900 859,900 42,904
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Schedule A
Summary of 2019 Budget Adjustments by Fund
Budget Amendment #3 (Ordinance #6720)
A 10,456,133 8,457,800 7,877,488 11,036,445
Beg. Fund
Balance
2019
Revenues
2019
Expenditures
Ending Fund
Balance
ERROR: Detail ≠ Schedule A
ERROR: Transfers In ≠ Transfers Out
Recreation Trails Fund (#120)
2019 Adopted Budget 64,326 7,100 - 71,426
Previous Budget Amendments - - - -
2019 Amended Budget 64,326 7,100 - 71,426
BA#3 (Ordinance #6720, Proposed):1,550 - - 1,550
Adjust beginning fund balance 1,550 - - 1,550
Revised 2019 Budget - Fund 120 65,876 7,100 - 72,976
BIA Fund (#121)
2019 Adopted Budget 109,473 55,200 90,000 74,673
Previous Budget Amendments 5,400 - 5,400 -
2019 Amended Budget 114,873 55,200 95,400 74,673
BA#3 (Ordinance #6720, Proposed):940 - - 940
Adjust beginning fund balance 940 - - 940
Revised 2019 Budget - Fund 121 115,813 55,200 95,400 75,613
Cumulative Reserve Fund (#122)
2019 Adopted Budget 10,124,312 180,200 142,200 10,162,312
Previous Budget Amendments and CIP Carry-Forwards - - - -
2019 Amended Budget 10,124,312 180,200 142,200 10,162,312
BA#3 (Ordinance #6720, Proposed):33,754 - - 33,754
Adjust beginning fund balance 33,754 - - 33,754
Revised 2019 Budget - Fund 122 10,158,066 180,200 142,200 10,196,066
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Schedule A
Summary of 2019 Budget Adjustments by Fund
Budget Amendment #3 (Ordinance #6720)
A 10,456,133 8,457,800 7,877,488 11,036,445
Beg. Fund
Balance
2019
Revenues
2019
Expenditures
Ending Fund
Balance
ERROR: Detail ≠ Schedule A
ERROR: Transfers In ≠ Transfers Out
Mitigation Fees Fund (#124)
2019 Adopted Budget 10,886,137 1,196,200 2,980,350 9,101,987
Previous Budget Amendments and CIP Carry-Forwards 962,356 416,200 1,228,556 150,000
2019 Amended Budget 11,848,493 1,612,400 4,208,906 9,251,987
BA#3 (Ordinance #6720, Proposed):33,289 - 252,500 (219,211)
Adjust beginning fund balance 33,289 - - 33,289
Funding for AWS widening proj. (cp1622; funded by grant and traffic impact fees)- - 202,500 (202,500)
Increase budget for Brannan Park synthetic infield project (cp1817)- - 50,000 (50,000)
Revised 2019 Budget - Fund 124 11,881,782 1,612,400 4,461,406 9,032,776
Local Revitalization 2010 C&D Bond Fund (#231)
2019 Adopted Budget 11,396 590,300 589,800 11,896
Previous Budget Amendments - - - -
2019 Amended Budget 11,396 590,300 589,800 11,896
BA#3 (Ordinance #6720, Proposed):3,436 - - 3,436
Adjust beginning fund balance 3,436 - - 3,436
Revised 2019 Budget - Fund 231 14,832 590,300 589,800 15,332
LID Guarantee Fund (#249)
2019 Adopted Budget 1,618 30 - 1,648
Previous Budget Amendments - - - -
2019 Amended Budget 1,618 30 - 1,648
BA#3 (Ordinance #6720, Proposed):15 - - 15
Adjust beginning fund balance 15 - - 15
Revised 2019 Budget - Fund 249 1,633 30 - 1,663
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Schedule A
Summary of 2019 Budget Adjustments by Fund
Budget Amendment #3 (Ordinance #6720)
A 10,456,133 8,457,800 7,877,488 11,036,445
Beg. Fund
Balance
2019
Revenues
2019
Expenditures
Ending Fund
Balance
ERROR: Detail ≠ Schedule A
ERROR: Transfers In ≠ Transfers Out
LID 350 Fund (#275)
2019 Adopted Budget 8,709 7,350 7,400 8,659
Previous Budget Amendments - - - -
2019 Amended Budget 8,709 7,350 7,400 8,659
BA#3 (Ordinance #6720, Proposed):(4,956) - - (4,956)
Adjust beginning fund balance (4,956) - - (4,956)
Revised 2019 Budget - Fund 275 3,753 7,350 7,400 3,703
Golf/Cemetery 2016 Refunding Fund (#276)
2019 Adopted Budget - 374,100 374,100 -
Previous Budget Amendments - - - -
2019 Amended Budget - 374,100 374,100 -
BA#3 (Ordinance #6720, Proposed):19 - - 19
Adjust beginning fund balance 19 - - 19
Revised 2019 Budget - Fund 276 19 374,100 374,100 19
Parks Construction Fund (#321)
2019 Adopted Budget 310,222 2,070,550 2,015,000 365,772
Previous Budget Amendments and CIP Carry-Forwards 184,924 1,100,085 1,285,009 -
2019 Amended Budget 495,146 3,170,635 3,300,009 365,772
BA#3 (Ordinance #6720, Proposed):120,757 50,000 50,000 120,757
Adjust beginning fund balance 120,757 - - 120,757
Increase budget for Brannan Park synthetic infield project (cp1817)- 50,000 50,000 -
Revised 2019 Budget - Fund 321 615,903 3,220,635 3,350,009 486,529
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Schedule A
Summary of 2019 Budget Adjustments by Fund
Budget Amendment #3 (Ordinance #6720)
A 10,456,133 8,457,800 7,877,488 11,036,445
Beg. Fund
Balance
2019
Revenues
2019
Expenditures
Ending Fund
Balance
ERROR: Detail ≠ Schedule A
ERROR: Transfers In ≠ Transfers Out
Capital Improvements Fund (#328)
2019 Adopted Budget 10,404,627 5,775,300 8,500,550 7,679,377
Previous Budget Amendments and CIP Carry-Forwards 1,709,627 839,333 2,698,960 (150,000)
2019 Amended Budget 12,114,254 6,614,633 11,199,510 7,529,377
BA#3 (Ordinance #6720, Proposed):1,211,410 75,000 774,400 512,010
Adjust beginning fund balance 1,211,410 - - 1,211,410
Incr funding for sidewalks on AWS (cp1705) due to WSDOT req'ts and cost incr - 75,000 75,000 -
Transfer reserved REET funds for arterial street preservation projects (cp1926)- - 699,400 (699,400)
Revised 2019 Budget - Fund 328 13,325,664 6,689,633 11,973,910 8,041,387
Local Revitalization Fund (#330)
2019 Adopted Budget 380,500 104,000 484,500 -
Previous Budget Amendments and CIP Carry-Forwards 6,000 - 6,000 -
2019 Amended Budget 386,500 104,000 490,500 -
BA#3 (Ordinance #6720, Proposed):(4,512) - (4,512) -
Adjust beginning fund balance (4,512) - (4,512) -
Revised 2019 Budget - Fund 330 381,988 104,000 485,988 -
Water Fund (#430)
2019 Adopted Budget 3,787,175 15,678,500 14,334,065 5,131,610
Previous Budget Amendments and CIP Carry-Forwards 128,200 - 128,200 -
2019 Amended Budget 3,915,375 15,678,500 14,462,265 5,131,610
BA#3 (Ordinance #6720, Proposed):4,052,091 3,135,100 2,323,700 4,863,491
Adjust beginning fund balance 4,052,091 - - 4,052,091
Adjust budget for Drinking Water Revolving Fund loan to pre-construction only - 135,100 (676,300) 811,400
Incr funding to replace lead service lines due to new DWSRF loan (cp1922)- 3,000,000 3,000,000 -
Revised 2019 Budget - Fund 430 7,967,466 18,813,600 16,785,965 9,995,101
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Schedule A
Summary of 2019 Budget Adjustments by Fund
Budget Amendment #3 (Ordinance #6720)
A 10,456,133 8,457,800 7,877,488 11,036,445
Beg. Fund
Balance
2019
Revenues
2019
Expenditures
Ending Fund
Balance
ERROR: Detail ≠ Schedule A
ERROR: Transfers In ≠ Transfers Out
Sewer Fund (#431)
2019 Adopted Budget 4,267,149 9,104,200 7,842,663 5,528,686
Previous Budget Amendments and CIP Carry-Forwards 25,100 - 25,100 -
2019 Amended Budget 4,292,249 9,104,200 7,867,763 5,528,686
BA#3 (Ordinance #6720, Proposed):1,085,922 - - 1,085,922
Adjust beginning fund balance 1,085,922 - - 1,085,922
Revised 2019 Budget - Fund 431 5,378,171 9,104,200 7,867,763 6,614,608
Storm Drainage Fund (#432)
2019 Adopted Budget 2,859,814 10,156,900 8,865,312 4,151,402
Previous Budget Amendments and CIP Carry-Forwards 26,800 - 26,800 -
2019 Amended Budget 2,886,614 10,156,900 8,892,112 4,151,402
BA#3 (Ordinance #6720, Proposed):2,080,595 - - 2,080,595
Adjust beginning fund balance 2,080,595 - - 2,080,595
Revised 2019 Budget - Fund 432 4,967,209 10,156,900 8,892,112 6,231,997
Sewer Metro Sub Fund (#433)
2019 Adopted Budget 3,184,467 18,372,500 18,215,600 3,341,367
Previous Budget Amendments - - - -
2019 Amended Budget 3,184,467 18,372,500 18,215,600 3,341,367
BA#3 (Ordinance #6720, Proposed):383,462 - - 383,462
Adjust beginning fund balance 383,462 - - 383,462
Revised 2019 Budget - Fund 433 3,567,929 18,372,500 18,215,600 3,724,829
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Schedule A
Summary of 2019 Budget Adjustments by Fund
Budget Amendment #3 (Ordinance #6720)
A 10,456,133 8,457,800 7,877,488 11,036,445
Beg. Fund
Balance
2019
Revenues
2019
Expenditures
Ending Fund
Balance
ERROR: Detail ≠ Schedule A
ERROR: Transfers In ≠ Transfers Out
Solid Waste Fund (#434)
2019 Adopted Budget 5,556,175 16,249,100 16,296,306 5,508,969
Previous Budget Amendments - - - -
2019 Amended Budget 5,556,175 16,249,100 16,296,306 5,508,969
BA#3 (Ordinance #6720, Proposed):126,864 - - 126,864
Adjust beginning fund balance 126,864 - - 126,864
Revised 2019 Budget - Fund 434 5,683,039 16,249,100 16,296,306 5,635,833
Airport Fund (#435)
2019 Adopted Budget 434,633 1,218,600 1,353,493 299,740
Previous Budget Amendments 40,000 - 53,200 (13,200)
2019 Amended Budget 474,633 1,218,600 1,406,693 286,540
BA#3 (Ordinance #6720, Proposed):116,285 80,000 80,000 116,285
Adjust beginning fund balance 116,285 - - 116,285
Revise budgeted revenues and expenditures for aviation fuel sales - 80,000 80,000 -
Revised 2019 Budget - Fund 435 590,918 1,298,600 1,486,693 402,825
Cemetery Fund (#436)
2019 Adopted Budget 441,060 1,187,000 1,363,962 264,098
Previous Budget Amendments - - - -
2019 Amended Budget 441,060 1,187,000 1,363,962 264,098
BA#3 (Ordinance #6720, Proposed):309,598 - - 309,598
Adjust beginning fund balance 309,598 - - 309,598
Revised 2019 Budget - Fund 436 750,658 1,187,000 1,363,962 573,696
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Schedule A
Summary of 2019 Budget Adjustments by Fund
Budget Amendment #3 (Ordinance #6720)
A 10,456,133 8,457,800 7,877,488 11,036,445
Beg. Fund
Balance
2019
Revenues
2019
Expenditures
Ending Fund
Balance
ERROR: Detail ≠ Schedule A
ERROR: Transfers In ≠ Transfers Out
Water Capital Fund (#460)
2019 Adopted Budget 138,010 9,037,400 6,612,686 2,562,724
Previous Budget Amendments and CIP Carry-Forwards 2,710,441 697,616 3,928,057 (520,000)
2019 Amended Budget 2,848,451 9,735,016 10,540,743 2,042,724
BA#3 (Ordinance #6720, Proposed):(879,957) 1,876,700 796,500 200,243
Adjust beginning fund balance (879,957) - - (879,957)
Adjust budget for Drinking Water Revolving Fund loan to pre-construction only - (1,023,300) (2,053,500) 1,030,200
Correct contractor payment from 2018 (entered in F460 should have been F102)- - - -
460.00.590.100.65 CONSTRUCTION PROJECTS (26,400)
460.00.597.100.55 OPERATING TRANSFER OUT 26,400
Incr funding to replace lead service lines due to new DWSRF loan (cp1922)- 2,900,000 2,850,000 50,000
Revised 2019 Budget - Fund 460 1,968,494 11,611,716 11,337,243 2,242,967
Sewer Capital Fund (#461)
2019 Adopted Budget 11,210,691 734,700 2,895,900 9,049,491
Previous Budget Amendments and CIP Carry-Forwards 1,029,608 - 1,029,608 -
2019 Amended Budget 12,240,299 734,700 3,925,508 9,049,491
BA#3 (Ordinance #6720, Proposed):146,047 - - 146,047
Adjust beginning fund balance 146,047 - - 146,047
Revised 2019 Budget - Fund 461 12,386,346 734,700 3,925,508 9,195,538
Storm Drainage Capital Fund (#462)
2019 Adopted Budget 13,328,488 569,900 3,196,900 10,701,488
Previous Budget Amendments 464,293 181,965 646,258 -
2019 Amended Budget 13,792,781 751,865 3,843,158 10,701,488
BA#3 (Ordinance #6720, Proposed):(1,496,283) - - (1,496,283)
Adjust beginning fund balance (1,496,283) - - (1,496,283)
Revised 2019 Budget - Fund 462 12,296,498 751,865 3,843,158 9,205,205
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Schedule A
Summary of 2019 Budget Adjustments by Fund
Budget Amendment #3 (Ordinance #6720)
A 10,456,133 8,457,800 7,877,488 11,036,445
Beg. Fund
Balance
2019
Revenues
2019
Expenditures
Ending Fund
Balance
ERROR: Detail ≠ Schedule A
ERROR: Transfers In ≠ Transfers Out
Airport Capital Fund (#465)
2019 Adopted Budget 146,405 2,093,700 2,140,500 99,605
Previous Budget Amendments and CIP Carry-Forwards 100,562 730,346 867,108 (36,200)
2019 Amended Budget 246,967 2,824,046 3,007,608 63,405
BA#3 (Ordinance #6720, Proposed):(35,086) - - (35,086)
Adjust beginning fund balance (35,086) - - (35,086)
Revised 2019 Budget - Fund 465 211,881 2,824,046 3,007,608 28,319
Cemetery Capital Fund (#466)
2019 Adopted Budget 261,037 133,000 358,100 35,937
Previous Budget Amendments and CIP Carry-Forwards - 22,442 22,442 -
2019 Amended Budget 261,037 155,442 380,542 35,937
BA#3 (Ordinance #6720, Proposed):(7,685) - - (7,685)
Adjust beginning fund balance (7,685) - - (7,685)
Revised 2019 Budget - Fund 466 253,352 155,442 380,542 28,252
Insurance Fund (#501)
2019 Adopted Budget 1,928,070 21,000 180,600 1,768,470
Previous Budget Amendments - - - -
2019 Amended Budget 1,928,070 21,000 180,600 1,768,470
BA#3 (Ordinance #6720, Proposed):4,456 - - 4,456
Adjust beginning fund balance 4,456 - - 4,456
Revised 2019 Budget - Fund 501 1,932,526 21,000 180,600 1,772,926
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Schedule A
Summary of 2019 Budget Adjustments by Fund
Budget Amendment #3 (Ordinance #6720)
A 10,456,133 8,457,800 7,877,488 11,036,445
Beg. Fund
Balance
2019
Revenues
2019
Expenditures
Ending Fund
Balance
ERROR: Detail ≠ Schedule A
ERROR: Transfers In ≠ Transfers Out
Workers' Comp Fund (#503)
2019 Adopted Budget 2,128,988 1,171,200 818,115 2,482,073
Previous Budget Amendments - - - -
2019 Amended Budget 2,128,988 1,171,200 818,115 2,482,073
BA#3 (Ordinance #6720, Proposed):(956,046) - - (956,046)
Adjust beginning fund balance (956,046) - - (956,046)
Revised 2019 Budget - Fund 503 1,172,942 1,171,200 818,115 1,526,027
Facilities Fund (#505)
2019 Adopted Budget 1,412,874 3,532,500 3,894,563 1,050,811
Previous Budget Amendments 136,000 (31,400) 288,000 (183,400)
2019 Amended Budget 1,548,874 3,501,100 4,182,563 867,411
BA#3 (Ordinance #6720, Proposed):285,123 - - 285,123
Adjust beginning fund balance 285,123 - - 285,123
Revised 2019 Budget - Fund 505 1,833,997 3,501,100 4,182,563 1,152,534
Innovation & Technology Fund (#518)
2019 Adopted Budget 2,573,504 6,429,110 6,437,640 2,564,974
Previous Budget Amendments 124,500 118,200 242,700 -
2019 Amended Budget 2,698,004 6,547,310 6,680,340 2,564,974
BA#3 (Ordinance #6720, Proposed):96,070 - - 96,070
Adjust beginning fund balance 96,070 - - 96,070
Revised 2019 Budget - Fund 518 2,794,074 6,547,310 6,680,340 2,661,044
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Schedule A
Summary of 2019 Budget Adjustments by Fund
Budget Amendment #3 (Ordinance #6720)
A 10,456,133 8,457,800 7,877,488 11,036,445
Beg. Fund
Balance
2019
Revenues
2019
Expenditures
Ending Fund
Balance
ERROR: Detail ≠ Schedule A
ERROR: Transfers In ≠ Transfers Out
Equipment Rental Fund (#550)
2019 Adopted Budget 3,091,626 2,007,606 2,746,591 2,352,641
Previous Budget Amendments - - 104,600 (104,600)
2019 Amended Budget 3,091,626 2,007,606 2,851,191 2,248,041
BA#3 (Ordinance #6720, Proposed):331,225 - - 331,225
Adjust beginning fund balance 331,225 - - 331,225
Revised 2019 Budget - Fund 550 3,422,851 2,007,606 2,851,191 2,579,266
Equipment Rental Capital Fund (#560)
2019 Adopted Budget 3,663,110 2,741,994 3,102,450 3,302,654
Previous Budget Amendments and CIP Carry-Forwards 46,400 75,200 371,500 (249,900)
2019 Amended Budget 3,709,510 2,817,194 3,473,950 3,052,754
BA#3 (Ordinance #6720, Proposed):60,622 62,000 156,000 (33,378)
Replace two message board units that are past their useful lives (fully paid in)- - 72,000 (72,000)
Vehicle for third School Resource Officer (incl. $60k in funding from ASD)- 62,000 62,000 -
Adjust beginning fund balance 60,622 - - 60,622
Purchase man-lift and trailer for Facilities Dept (funding in 2019 adopted budget)- - 22,000 (22,000)
Revised 2019 Budget - Fund 560 3,770,132 2,879,194 3,629,950 3,019,376
IT Capital Fund (#568)
2019 Adopted Budget 1,169,997 - 869,300 300,697
Previous Budget Amendments and CIP Carry-Forwards - 22,500 22,500 -
2019 Amended Budget 1,169,997 22,500 891,800 300,697
BA#3 (Ordinance #6720, Proposed):356,536 12,200 12,200 356,536
Adjust beginning fund balance 356,536 - - 356,536
Vehicle electronics for third School Resource Officer - 12,200 12,200 -
Revised 2019 Budget - Fund 568 1,526,533 34,700 904,000 657,233
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Schedule A
Summary of 2019 Budget Adjustments by Fund
Budget Amendment #3 (Ordinance #6720)
A 10,456,133 8,457,800 7,877,488 11,036,445
Beg. Fund
Balance
2019
Revenues
2019
Expenditures
Ending Fund
Balance
ERROR: Detail ≠ Schedule A
ERROR: Transfers In ≠ Transfers Out
Fire Pension Fund (#611)
2019 Adopted Budget 2,205,369 120,900 215,120 2,111,149
Previous Budget Amendments - - - -
2019 Amended Budget 2,205,369 120,900 215,120 2,111,149
BA#3 (Ordinance #6720, Proposed):27,922 - 5,000 22,922
Increase budget for actuarial services - - 5,000 (5,000)
Adjust beginning fund balance 27,922 - - 27,922
Revised 2019 Budget - Fund 611 2,233,291 120,900 220,120 2,134,071
Cemetery Endowment Fund (#701)
2019 Adopted Budget 1,817,409 45,000 33,000 1,829,409
Previous Budget Amendments and CIP Carry-Forwards 22,442 - 22,442 -
2019 Amended Budget 1,839,851 45,000 55,442 1,829,409
BA#3 (Ordinance #6720, Proposed):56,978 - - 56,978
Adjust beginning fund balance 56,978 - - 56,978
Revised 2019 Budget - Fund 701 1,896,829 45,000 55,442 1,886,387
Grand Total - All Funds
2019 Adopted Budget 121,191,833 194,308,846 207,147,258 108,353,421
Previous Budget Amendments 10,777,335 6,591,498 18,613,233 (1,244,400)
2019 Amended Budget 131,969,168 200,900,344 225,760,491 107,109,021
TOTAL BA#3 (Ordinance #6720, Proposed)10,456,133 8,457,800 7,877,488 11,036,445
Revised 2019 Budget 142,425,301 209,358,144 233,637,979 118,145,466
351,783,445 351,783,445
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Schedule B
2019 Appropriations by Fund
Fund
2019
Adopted
Budget
BA#1
(Ord #6712) CIP CFs
BA#2
(Ord #6719)
BA#3
(Ord #6720)
Total
Amendments
Revised
Budget
General Fund (#001)90,183,028 511,300 - 141,910 4,015,234 4,668,444 94,851,472
Arterial Street Fund (#102)3,125,877 - 1,995,054 - 1,484,581 3,479,635 6,605,512
Local Street Fund (#103)3,562,780 - 899,476 - 249,701 1,149,177 4,711,957
Hotel/Motel Tax Fund (#104)262,171 6,650 - - 82,454 89,104 351,275
Arterial Street Preservation Fund (#105)4,541,657 - 1,791,313 - 163,379 1,954,692 6,496,349
Drug Forfeiture Fund (#117)531,497 - - - 80,697 80,697 612,194
Housing & Comm Develop Fund (#119)626,458 269,900 - - 6,446 276,346 902,804
Recreation Trails Fund (#120)71,426 - - - 1,550 1,550 72,976
BIA Fund (#121)164,673 5,400 - - 940 6,340 171,013
Cumulative Reserve Fund (#122)10,304,512 - 84,400 - 33,754 118,154 10,422,666
Mitigation Fees Fund (#124)12,082,337 150,000 1,228,556 - 33,289 1,411,845 13,494,182
1998 GO Library Bond Fund (#229)- - - - - - -
City Hall Annex 2010 A&B Bond Fund (#230)1,664,900 - - - - - 1,664,900
Local Revitalization 2010 C&D Bond Fund (#231)601,696 - - - 3,436 3,436 605,132
SCORE Debt Service Fund (#238)2,129,800 - - - - - 2,129,800
LID Guarantee Fund (#249)1,648 - - - 15 15 1,663
LID 350 Fund (#275)16,059 - - - (4,956) (4,956) 11,103
Golf/Cemetery 2016 Refunding Fund (#276)374,100 - - - 19 19 374,119
Parks Construction Fund (#321)2,380,772 - 1,285,009 - 170,757 1,455,766 3,836,538
Capital Improvements Fund (#328)16,179,927 54,000 2,494,960 - 1,286,410 3,835,370 20,015,297
Local Revitalization Fund (#330)484,500 - 6,000 - (4,512) 1,488 485,988
Water Fund (#430)19,465,675 115,200 13,000 - 7,187,191 7,315,391 26,781,066
Sewer Fund (#431)13,371,349 12,100 13,000 - 1,085,922 1,111,022 14,482,371
Storm Drainage Fund (#432)13,016,714 13,800 13,000 - 2,080,595 2,107,395 15,124,109
Sewer Metro Sub Fund (#433)21,556,967 - - - 383,462 383,462 21,940,429
Solid Waste Fund (#434)21,805,275 - - - 126,864 126,864 21,932,139
Airport Fund (#435)1,653,233 40,000 - - 196,285 236,285 1,889,518
Cemetery Fund (#436)1,628,060 - - - 309,598 309,598 1,937,658
Water Capital Fund (#460)9,175,410 - 3,408,057 - 996,743 4,404,800 13,580,210
Sewer Capital Fund (#461)11,945,391 - 1,029,608 - 146,047 1,175,655 13,121,046
Storm Drainage Capital Fund (#462)13,898,388 - 646,258 - (1,496,283) (850,025) 13,048,363
Airport Capital Fund (#465)2,240,105 - 830,908 - (35,086) 795,822 3,035,927
Cemetery Capital Fund (#466)394,037 - 22,442 - (7,685) 14,757 408,794
Insurance Fund (#501)1,949,070 - - - 4,456 4,456 1,953,526
Workers' Comp Fund (#503)3,300,188 - - - (956,046) (956,046) 2,344,142
Facilities Fund (#505)4,945,374 104,600 - 4,500 285,123 394,223 5,339,597
Innovation & Technology Fund (#518)9,002,614 242,700 - 13,500 96,070 352,270 9,354,884
Equipment Rental Fund (#550)5,099,232 - - - 331,225 331,225 5,430,457
Equipment Rental Capital Fund (#560)6,405,104 82,600 39,000 - 122,622 244,222 6,649,326
IT Capital Fund (#568)1,169,997 22,500 - - 368,736 391,236 1,561,233
Fire Pension Fund (#611)2,326,269 - - - 27,922 27,922 2,354,191
SKHHP Fund (#654)- - - 220,160 - 220,160 220,160
Cemetery Endowment Fund (#701)1,862,409 - 22,442 - 56,978 79,420 1,941,829
Total 315,500,679 1,630,750 15,822,483 380,070 18,913,933 36,747,236 352,247,915
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AGENDA BILL APPROVAL FORM
Agenda Subject:
Cyber Security Update (Travis) (20 Minutes)
Date:
June 20, 2019
Department:
City Council
Attachments:
Innovation Technology Cyber Security
Presentation
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
Background Summary:
Rev iewed by Council Committees:
Councilmember:Staff:Travis
Meeting Date:June 24, 2019 Item Number:
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Innovation & Technology
Cybersecurity
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What is
Cybersecurity?
2
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Merriam-Webster
3
:measures taken to protect a computer
or computer system against unauthorized
access or attack
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Top Threats
4
•Malware
•Web -based Attacks
•Denial-of-Service
•Malicious Insiders
•Social-Engineering
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5
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6
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Email Threat
7
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Mitigation Strategy
8
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Partners
9
•State Auditors Office
•Emergency Management
•Homeland Security
•WCIA
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Practices
10
•Infrastructure Analysis
•Internal Security Reviews
•Data Protection / Encryption
•Artificial Intelligence
•Whitelisting / Blacklisting
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Wrap up
11
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Questions?
Page 138 of 142
THANK YOU
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AGENDA BILL APPROVAL FORM
Agenda Subject:
Matrix
Date:
June 20, 2019
Department:
City Council
Attachments:
Special Focus Area
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:June 24, 2019 Item Number:
Page 140 of 142
SPECIAL FOCUS AREAS
COMMUNITY WELLNESS
FINANCE, TECHNOLOGY,
& ECONOMIC
DEVELOPMENT
PUBLIC WORKS & COMMUNITY
DEVELOPMENT
MUNICIPAL SERVICES
PUBLIC HEALTH AND WELLNESS
COMMUNITY & NEIGHBORHOOD SERVICES
HOMELESSNESS & HOMELESSNESS
PREVENTION
HOUSING QUALITY, AFFORDABILITY
& ATTAINABILITY
HUMAN & SOCIAL SERVICES
DOMESTIC VIOLENCE SERVICES
COMMUNITY EQUITY
EQUIPMENT RENTAL
FACILITIES
INNOVATION & TECHNOLOGY
CITY REAL PROPERTY
BUSINESS DEVELOPMENT
SISTER CITIES INTERNATIONAL
UTILITIES
TRANSPORTATION
SUSTAINABILITY
ENVIRONMENTAL PROTECTION
CULTURAL ARTS & PUBLIC ARTS
PLANNING & ZONING
PERMITS & DEVELOPMENT
RIGHT OF WAY MANAGEMENT
AIRPORT
AIRPORT BUSINESS
POLICE
SCORE JAIL
DISTRICT COURT
PARKS & RECREATION
ANIMAL CONTROL
SOLID WASTE
ENERGENCY PLANNING
MULTIMEDIA
CEMETERY
Councilmember Trout-Manuel, Chair Councilmember Wales, Chair Councilmember DaCorsi, Chair Councilmember Brown, Chair
Councilmember DaCorsi, Vice Chair Councilmember Holman, Vice Chair Councilmember Baggett, Vice Chair Deputy Mayor Peloza, Vice Chair
2019 MEETING DATES 2019 MEETING DATES 2019 MEETING DATES 2019 MEETING DATES
February 11, 2019 February 25, 2019 January 14, 2019 January 28, 2019
April 8, 2019 April 22, 2019 March 11, 2019 March 25, 2019
June 10, 2019 June 24, 2019 May 13, 2019 May 27, 2019
August 12, 2019 August 26, 2019 July 8, 2019 July 22, 2019
October 14, 2019 October 28, 2019 September 9, 2019 September 23, 2019
December 9, 2019 December 23, 2019 November 12, 2019 November 25, 2019
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Updated 6-17-2019
NO.TOPIC Chair STAFF LEAD(S)STUDY SESSION REVIEW
DATE(S)
COUNCIL DISCUSSION
SUMMARY ACTION DATE
1 Auburn Avenue Theater Chair DaCorsi
Vice Chair Baggett Director Faber 9/9/2019
2 Funding Options Chair Wales
Vice Chair Holman Director Coleman Ongoing
3 Mandatory City Housing
Inspections
Chair Trout-Manual
Vice Chair DaCorsi Director Tate 8/12/2019
4 Animal Control (APD) Update Chair DaCorsi
Vice Chair Baggett Chief Pierson 7/8/2019
COUNCIL MATRIX
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