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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 06/04/2019 Unless otherwise noted, the Operations Committee meets at 4 p.m. on the first and third Tuesday of each month in Kent City Hall, Council Chambers East, 220 Fourth Avenue South, Kent, WA 98032. For additional information please contact Cathie Everett at 253-856-5705, or via email at CEverett@KentWA.gov. Any person requiring a disability accommodation should contact the City Clerk’s Office at 253-856-5725 in advance. For TDD relay service call Washington Telecommunications Relay Service at 7-1-1. Operations Committee Agenda Chair - Les Thomas Bill Boyce– Dennis Higgins Tuesday, June 4, 2019 4:00 p.m. Item Description Action Speaker Time 1. Call to Order Chair 01 MIN. 2. Roll Call Chair 01 MIN. 3. Changes to the Agenda Chair 01 MIN. 4. Approval of May 21, 2019 Minutes YES Chair 05 MIN. 5. Approval of Check Summary Report Dated 5/1/19-5/15/19 YES Chair 05 MIN. 6. FWLE City Services Agreement - Task Order Number 2 YES City Liaison to Sound Transit Kelly Peterson 15 MIN. 7. ICMA - RC Administrative Services Agreement YES HR Benefits Manager Laura Horea 05 MIN. 8. April Financial Report NO Interim Finance Director Barbara Lopez 05 MIN. 9. 1st Quarter 2019 Investment Report NO Cash & Investment Officer Joe Bartlemay 05 MIN. 10. Adjournment Chair 01 MIN. Page 1 of 3 Pending Approval Operations Committee CC Ops Regular Meeting Minutes May 21, 2019 Date: May 21, 2019 Time: 4:00 p.m. Place: Chambers Attending: Les Thomas, Committee Chair Bill Boyce, Councilmember Dennis Higgins, Councilmember Agenda: 1. Call to Order 4:01 p.m. 2. Roll Call Attendee Name Title Status Arrived Les Thomas Committee Chair Present Bill Boyce Councilmember Present Dennis Higgins Councilmember Present 3. Changes to the Agenda There were no changes to the agenda. 4. Approval of Minutes dated May 7, 2019 MOTION: Move to approve the Minutes dated May 7, 2019 RESULT: APPROVED [UNANIMOUS] MOVER: Dennis Higgins, Councilmember SECONDER: Bill Boyce, Councilmember AYES: Thomas, Boyce, Higgins 5. Approval of Check Summary Report Dated 4/16/19-4/30/19 MOTION: Move to approve the check summary report dated 4/16/19 through 4/30/19. RESULT: APPROVED [UNANIMOUS] MOVER: Bill Boyce, Councilmember SECONDER: Dennis Higgins, Councilmember AYES: Thomas, Boyce, Higgins 6. Lodging Tax Grant Awards Economic Development Manager Michelle Wilmot presented a request to recommend council authorize the City's Fall/Winter 2019 Business and Leisure Tourism Promotion Grants as recommended by the Lodging Tax Advisory Committee. The City received eight grant applications with requests 4 Packet Pg. 2 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 1 , 2 0 1 9 4 : 0 0 P M ( O P E N S E S S I O N ) Operations Committee CC Ops Regular Meeting Minutes May 21, 2019 Kent, Washington Page 2 of 3 totaling $205,780, well within range of the approximately $300,000 available. The committee evaluated all applications and selected six of the eight to fund. Funding is recommended for these six applications as they will bring additional people to Kent for business and leisure travel. Council President Boyce requested that Ms. Wilmot get these events on the Council calendar and gave Kudos for the work being done to bring these types of events to Kent. MOTION: Recommend Council authorize the business and leisure tourism promotion grants as recommended by the Lodging Tax Advisory Committee (LTAC). RESULT: RECOMMENDED TO COUNCIL [UNANIMOUS]Next: 6/4/2019 7:00 PM MOVER: Dennis Higgins, Councilmember SECONDER: Bill Boyce, Councilmember AYES: Thomas, Boyce, Higgins 7. Medic One/Emergency Medical Services Levy Resolution Chief Administrative Officer Derek Matheson and Fire Chief Matt Morris presented a request to recommend Council adopt a resolution indicating the City's approval to place a levy on the November 2019 ballot to provide long- term funding for the countywide Medic One/Emergency Medical Services system. This levy will replace the current countywide levy which expires on December 31, 2019. MOTION: Recommend the City Council adopt a resolution indicating the City of Kent’s approval of a ballot proposition to provide stable and long-term funding for the countywide Medic One / Emergency Medical Services system. RESULT: RECOMMENDED TO COUNCIL [UNANIMOUS]Next: 6/4/2019 7:00 PM MOVER: Bill Boyce, Councilmember SECONDER: Dennis Higgins, Councilmember AYES: Thomas, Boyce, Higgins 8. Asset Management System Replacement Project Update Technical Systems Analyst Levin Conway, IT Project Manager Melissa Janson, Woolpert Project Manager Christina Martinez and Public Works GIS Coordinator Heath Bracket provided an update on the asset management system replacement project. Over the past two months the Project Core Team, IT, Woolpert and PW Operations staff have had multiple project meetings and onsite workshops. An overview of completed tasks and milestones as well as a high-level overview of the project schedule was presented. At this time, the project is on-time and on-budget. 9. Director's Report 4 Packet Pg. 3 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 1 , 2 0 1 9 4 : 0 0 P M ( O P E N S E S S I O N ) Operations Committee CC Ops Regular Meeting Minutes May 21, 2019 Kent, Washington Page 3 of 3 Interim Finance Director Barbara Lopez reported on two finance and operational items. The first was some good news indicating that, due to bids coming in lower than estimated and project savings on other projects that can be reallocated, we are no longer in a position where we need to issue bonds to fund the 224th/228th corridor as originally planned. The second item was a heads-up that the annual audit is underway. The State Auditor's Office is on-site and will be here full-time for the next three to four months. As a reminder, the audit is actually three audits in one. It consists of an audit of financial statements, a "single audit" which audits federal grants and an accountability audit which audits areas such as contracting, procurement and payroll to make sure we are following our processes and procedures. When the audit is completed, an exit conference will be scheduled. 10. Adjournment 4:35 p.m. Cathie Everett Committee Secretary 4 Packet Pg. 4 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 2 1 , 2 0 1 9 4 : 0 0 P M ( O P E N S E S S I O N ) OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: June 4, 2019 TO: Operations Committee SUBJECT: Approval of Check Summary Report Dated 5/1/19-5/15/19 MOTION: Move to approve the check summary report dated May 1 through May 15, 2019. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services 5 Packet Pg. 5 OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: June 4, 2019 TO: Operations Committee SUBJECT: FWLE City Services Agreement - Task Order Number 2 MOTION: Move to recommend Council authorize the Mayor to sign all documents to execute Task Order 2 to the City Services Agreement (GA 0183-17) between the City of Kent and Sound Transit for City Services and Costs related to the Federal Way Link Extension Project Review and Permitting subject to final terms and conditions acceptable to the Chief Administrative Officer and City Attorney. SUMMARY: The City of Kent (City) and Sound Transit have been working cooperatively for many years to prepare for the construction of the Federal Way Link Extension project. The City and Sound Transit approved a Development Agreement in 2018 that identified project location, project elements, station design, development of surplus property, development standards and the design review, permitting and inspection processes. This Motion before the Operations Committee provides funding to fulfill objectives identified in the Development Agreement. To date, City staff time, including drafting of the Development Agreement noted above, has been reimbursed through Task Order #1 to the City Services Agreement (Agreement) approved in 2017. With the Limited Notice to Proceed (LNTP) issued to Sound Transit’s approved contractor, the Federal Way Link Extension Project is entering the design-build phase. Task Order #2 to the Agreement provides reimbursement of staff time and fees for the following phases: 1) Post-Notice to Proceed Design Review; 2) Early Construction; 3) Heavy Construction; 4) Systems / Rail Activation; and 5) Project Closeout. Sound Transit will pay the City a fixed fee in the amount of $335,000 per quarter with a total amount of six-million-seven-hundred-thousand dollars ($6.7 million) for staff time and fees related to the Federal Way Link Extension Project. Payments will be made on a quarterly basis as noted in Attachment 3 with payments beginning in the 3rd Quarter of 2019 and the last payment due the second quarter of 2024. The final payment shall be due with the completion of construction inspection activities, resolution of punch list items and certificates of occupancy being issued. No additional Task Orders are expected for this project. BUDGET IMPACT: $6.7 million in revenue. SUPPORTS STRATEGIC PLAN GOAL: 6 Packet Pg. 6 Thriving City, Evolving Infrastructure, Innovative Government, Sustainable Services ATTACHMENTS: 1. AE 0044-12 FWLE City of Kent Task Order 2 and Attachment 1 (PDF) 2. AE 0044-12 City of Kent Task Order 2 Attachment 2 Preliminary Permitting Plan (PDF) 3. AE 0044-12 City of Kent Task Order 2 Attachment 3 Milestones (PDF) 4. Executed City Services Agreement (PDF) 6 Packet Pg. 7 Final Rev – May, 23 2019 Task Order 2 Page 1 GA 0183-17 CITY SERVICES AGREEMENT (GA 0183-17) BETWEEN THE CITY OF KENT AND SOUND TRANSIT FOR CITY SERVICES AND COSTS RELATED TO FEDERAL WAY LINK EXTENSION PROJECT REVIEW AND PERMITTING Task Order 2: Pre-Construction and Construction Services Support (through project close-out) This Task Order is issued under the City Services Agreement between the City of Kent and Sound Transit for City Services and Fees related to Federal Way Link Extension (FWLE) Project Review and Permitting dated August 25, 2017. This Task Order establishes the scope, schedule, and budget, including staffing and permitting fees, through Project construction and close-out (anticipated to occur in 2024). The City agrees to perform the Services in the manner set forth in this Task Order. The terms and conditions of the City Services Agreement are incorporated into this Task Order unless expressly modified below. This Task Order shall be effective as of the date signed by Sound Transit. Project Description. This Task Order covers city work and fees during the Post-NTP Design Review / Early Construction, Heavy Construction, and Systems / Rail Activation / Project Closeout Phases. City involvement will inlcude a City Project Liaison (as variously described in Design Build Contractor documents and in the City’s Development Agreement with Sound Transit) and other staff whose role it will be to expedite processes related to Design Build Project delivery, including design review, permitting, and inspection.  Attachment 1: Task Order Scope of Work (Pre-Construction and Construction Services Support)  Attachment 2: Project Preliminary Permitting Plan  Attachment 3: Achievement Milestones and Payment Plan The parties have agreed to the terms of this Task Order by signing below. For the City ______________________________________ Signature ______________________________________ Title ______________________________________ Date Approved as to Form: ______________________________________ City Attorney For Sound Transit ______________________________________ Signature ______________________________________ Title ______________________________________ Date Approved as to Form: ______________________________________ Sound Transit Legal Counsel 6.a Packet Pg. 8 At t a c h m e n t : A E 0 0 4 4 - 1 2 F W L E C i t y o f K e n t T a s k O r d e r 2 a n d A t t a c h m e n t 1 ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) Task Order 2 Attachment 1 GA 0183-17 Page 1 Task Order 2 - Attachment 1 Pre-Construction and Construction Services Support: Scope of Work Overview. The scope of this Task Order 2 identifies City tasks associated with preparations for issuance of the Design-Build (D-B) Contractor Notice-to-Proceed (NTP), final design, permitting, heavy construction and Project close-out (anticipated to occur in late 2024), as well as all permitting and approvals. Task Order 2 covers this extent of time and range of tasks in order to provide certainty and predictability to both the City and Sound Transit with respect to clarifying workload and cash flow payments, expeditiously conducting Project reviews, permitting and ensuring Project delivery within the lifetime budget. Total Compensation for City Services. Sound Transit will pay the City a fixed fee in the total amount of six-million-seven-hundred-thousand dollars ($6.7 million) for City costs associated with the scope of this Task Order 2. Payments will be made on a quarterly basis as noted in the Attachment 3 This payment shall be inclusive of:  Permitting: All permit fees, approvals and related costs. The City agrees that it will not separately charge Sound Transit additional permit or approval-related fees. The scope of this Task Order 2 includes City activities necessary to facilitate all permits and approvals required for completion of the FWLE Project. The Parties have developed a Preliminary Permitting Plan which identifies anticipated permits and is included as Attachment 2 to this Task Order. The Plan includes timelines and milestones for City review and approval of Project permit submittals. Sound Transit’s D-B Contractor will further refine and finalize the Preliminary Permitting Plan to create a Final Permitting Plan, that will be reviewed and approved by the City as detailed in the executed Development Agreement between Sound Transit and the City. The Final Permitting Plan will provide a framework that supports approval of construction permits within mutually agreed upon timeframes that support the overall Project schedule.  Staffing: All staffing related costs necessary to support the overall project schedule and as detailed in this Task Order. Staffing is required to support the following three phases. Phase 1: Design Review / Early Construction: This phase covers staffing services from the time of issuance of D-B Contractor NTP until the start of heavy construction (i.e., when the design review and permitting processes are substantially complete), which is estimated to occur in February 2020. Phase 2: Heavy Construction: This phase covers staffing services through the entirety of the heavy construction phase, which is estimated to begin in March 2020 and to conclude in March 2023. Phase 3: Systems / Rail Activation / Project Closeout: This phase covers staffing services from the conclusion of heavy construction until the following three conditions are met: 1) construction inspection activities end, 2) punch list items are accepted via a letter from the City, and 3) building inspection services end and the last Certificate of Occupancy is issued. Costs of permitting will be paid to the City in quarterly installments and are reflected in the respective payment estimates below. 6.a Packet Pg. 9 At t a c h m e n t : A E 0 0 4 4 - 1 2 F W L E C i t y o f K e n t T a s k O r d e r 2 a n d A t t a c h m e n t 1 ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) Task Order 2 Attachment 1 GA 0183-17 Page 2 Invoicing and Payment. Payments will be made to the City under this Task Order 2 as follows:  Staffing and Permitting Costs: Sound Transit shall pay the City a fixed fee of six-million-seven- hundred-thousand dollars ($6.7 million) to cover all staffing, permitting and related costs. This shall be paid to the City in twenty (20) equal payments of three-hundred and thirty-five thousand dollars ($335,000) for work begining in Q3 2019. A total of nineteen (19) payments will be paid within 30 days of submission for work completed in the previous quarter, starting in Quarter 4 2019 and ending in Quarter 2 2024. The final installment (20th of 20) will be made payable upon achievement of the following: 1) construction inspection activities end, 2) punch list items are accepted via a letter from the City, and 3) building inspection services end and the last Certificate of Occupancy is issued. If completion of these items occurs later than Q2 2024, payment will be made 30 days after completion of the items. The payment plan is captured in Attachment 3.  City Progress Reports : The City shall submit to Sound Transit quarterly progress reports and an invoice for the quarterly payment as described above. Progress reports will include a description of services provided by the City during the payment period, focusing on progress made and work completed toward agreed upon activities and milestones identified in Attachments 3, and shall use Attachment 4 for the progress reports.  Hourly Records: The City will not be required to submit records of hourly staff time spent on the project, as the payment is based on the City meeting agreed upon activities and milestones. Scope of Work. A. Project Management and Administration. A.1. Management and Administration. The key purpose of this task is to provide accurate and timely project administration and production of quality work products to allow for Sound Transit’s design and construction of the Project. This task will be continuous throughout the duration of this Task Order (which extends through Project closeout – anticipated based on current schedule to be in 2024) and includes the work necessary to set up and participate in meetings, design reviews, construction progress meetings, monthly or quarterly invoicing, monitoring and reporting progress, and providing overall Project coordination. The Parties anticipate that work plans will be developed as the Project proceeds to provide greater specificity on tasks and durations of activities, which will allow for the flexibility needed to respond to the D-B construction process. These work plans may be produced for milestone phases, on an annual or other basis as mutually agreed by the Parties. Deliverables  Provide quarterly invoicing and progress reporting and ongoing project management activities.  Develop and/or refine, in collaboration with Sound Transit, annual or milestone City work plans detailing City support to be provided to the Project. A.2. City Project Liaison. The key purpose of the City Project Liaison is to participate in and facilitate the intensive coordination with Sound Transit required to deliver the FWLE Project. The City Project Liaison will be colocated at least 50% of the time at the project office. This Task Order presumes that the City Project Liaison position will be funded by Sound Transit at 100% of an FTE. Given the mutual interests of both Sound Transit and the City in ensuring the City Project Liaison is qualified and effective in 6.a Packet Pg. 10 At t a c h m e n t : A E 0 0 4 4 - 1 2 F W L E C i t y o f K e n t T a s k O r d e r 2 a n d A t t a c h m e n t 1 ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) Task Order 2 Attachment 1 GA 0183-17 Page 3 discharging their duties, the City shall consult with Sound Transit on the best-qualified candidate should this position need to be refilled. Deliverables  Colocation of City Project Liaison  Provide a job description for the City Project Liaison.  Select the best-qualified candidate for the position. A.3. Coordination and Communication. The key purpose of coordination and communication during all phases is to participate with Sound Transit to effectively deliver the Project. Activities include participating in project coordination meetings and preparing for and/or following up on key topics to advance resolution of issues that may arise during delivery of the Project. Deliverables  Attend Sound Transit project coordination meetings. B. Phase 1: Design Review / Early Construction. B.1. Over-the-Shoulder Design Review. The key purpose of this task is for the City’s Project Liaison to participate in the design review process, working closely with Sound Transit and Sound Transit’s D-B Contractor to ensure timely review of D-B Contractor designs and materials and resolution of identified issues and to include appropriate city subject matter experts when applicable. This process will be ongoing throughout the Design Review process. It is anticipated that the City Project Liaison will be co- located (at least part-time) at the Project office during this phase, and through Project heavy construction, and their primary function will be to identify and resolve issues with Sound Transit, the D- B Contractor and other city staff to support the design process and development of plans that satisfy the City’s permitting requirements. Deliverables  Co-location of City Project Liaison at Sound Transit’s construction project office, with the amount of time spent to be determined based on Project workload.  Attend construction progress and other meetings.  Participate in resolving issues resulting from review of D-B Contractor design submittals. B.2. Review of D-B Contractor Submittals. As part of this task, the City will participate in Sound Transit’s review of D-B Contractor design submittals, pursuant to commitments made in the City’s Development Agreement and as part of fulfilling commitments for expeditious Project permitting. Close coordination, through regularly scheduled meetings referenced in Section A.1 of this Task Order and additional meetings as needed, will be necessary to advance, review and communicate issues with the City and to seek feedback or concurrence from the City. The City will be responsible for performing reviews of document submittals and returning unified and coordinated comments from all relevant City departments within a timeframe mutually agreed upon with Sound Transit. If for any reason the City requires additional review time, the City will notify Sound Transit as soon as possible. Deliverables  Provide consolidated and coordinated comments on D-B Contractor Design submittal packages, consistent with the D-B Contractor’s final Project Permitting Plan. 6.a Packet Pg. 11 At t a c h m e n t : A E 0 0 4 4 - 1 2 F W L E C i t y o f K e n t T a s k O r d e r 2 a n d A t t a c h m e n t 1 ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) Task Order 2 Attachment 1 GA 0183-17 Page 4  Review and submission of consolidated comments on other D-B Contractor submittals, including but not limited to: o Transportation Management Plan o Maintenance of Traffic Plan(s) o Construction Noise and Vibration Mitigation Plan o Construction Outreach and Communication Plan B.3. Review/ Approve D-B Contractor Final Permitting Plan. The City will participate in the development, review, and approval of a Final Permitting Plan submitted by Sound Transit’s D-B Contractor. The Plan will include City commitments for timely and expedited review of design and permit submittal packages. Deliverables  Submit consolidated and coordinated comments on D-B Contractor draft Project Permitting Plan.  Work in good faith to resolve comments on draft Project Permitting Plan.  Approve final D-B Contractor Project Permitting Plan. B.4. Permitting Early Work. There will likely be activities during this phase requiring the issuance of City permits. The following activities are currently anticipated. B.4.1. Permitting for Early Demolition. Sound Transit began the process of acquiring property needed for Project construction and operation in 2017. Some of the properties being acquired in the City have structures that will require demolition as part of D-B Contractor activities. The key purpose of this activity is to coordinate on the demolition permitting process. Deliverables  Support process to expedite review of permits required for demolition activities consistent with the final Project Permitting Plan. B.4.2. Permitting for Early Foundation Construction. Under this task, City staff will work with Sound Transit and its D-B Contractor to review and permit early work installing structural and other foundations in advance of heavy construction. Deliverables  Support process to expedite review of permits required for installation of structural and other foundations consistent with the final Project Permitting Plan. B.4.3. Permitting for Clearing and Grading. Under this task, City staff will work with Sound Transit and its D-B Contractor to review and permit early work for clearing and grading the Project area in advance of heavy construction. Deliverables  Support process to expedite review of permits required to begin clearing and grading work consistent with the final Project Permitting Plan. 6.a Packet Pg. 12 At t a c h m e n t : A E 0 0 4 4 - 1 2 F W L E C i t y o f K e n t T a s k O r d e r 2 a n d A t t a c h m e n t 1 ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) Task Order 2 Attachment 1 GA 0183-17 Page 5 B.5. Early Utility Relocation. City staff will work with Sound Transit and its D-B Contractor to review and approve plans for early work to relocate utilities in advance of Project heavy construction. Deliverables  Expedited review and approve early utility relocation plans and submittals consistent with City of Kent Design and Construction Standards. B.6. Stormwater Coordination. Under this task, City staff will work with Sound Transit and its D-B Contractor to review and approve design of stormwater infrastructure constructed as part of the Project. Deliverables  Expedited review and approval of infrastructure that will be constructed as part of the Project to manage stormwater consistent with the final Project Permitting Plan. C. Phase 2: Heavy Construction. C.1. Permitting. Consistent with the Final Project Permitting Plan, developed during the early construction phase, the City will provide timely review in processing of D-B Contractor permit submittals in a way that supports the design/build construction approach and the overall construction schedule. Deliverables  Expedited review and approval of permits as issued to Sound Transit’s D-B Contractor for Project construction consistent with the final Project Permitting Plan. C.2. Design Review of Change Orders. As part of this task, City staff will review change orders, as requested by Sound Transit, that affect City rights-of-way or for which the City may have permitting authority. The City will review and approve changes to permits if change orders result in a change to permit approvals. All change orders must be consistent with City codes and/or all other applicable agreements between Sound Transit and the City of Kent. Deliverables  Provide review and input into Project Change Orders, as requested by Sound Transit.  Submit consolidated and coordinated comments on Project Change Orders to Sound Transit on a timeline mutually agreed to and based on the magnitude of the Change Order proposed, provided changes are consistent with City code and all applicable agreements. C.3. Project Inspection. The reimbursement of City staff time for Project inspection activities will focus on all infrastructure constructed as part of the Project except for those portions of the guideway structure beyond column foundations within the City right-of-way, to support the process of acceptance discussed under Section E. The following categories have been identified for City inspection services and should be used by the City for the purposes of administration and invoicing. C.3.1. Civil Inspection C.3.2. Tree Replacement / Landscaping Inspection C.3.3. Stormwater Inspection 6.a Packet Pg. 13 At t a c h m e n t : A E 0 0 4 4 - 1 2 F W L E C i t y o f K e n t T a s k O r d e r 2 a n d A t t a c h m e n t 1 ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) Task Order 2 Attachment 1 GA 0183-17 Page 6 C.3.4. Mechanical Inspection C.3.5. Building Inspection C.3.6. Structural Inspection C.4. Utility Relocation. During this phase, City staff will be asked to review and approve relocation plans for utilities owned by the City and/or private utilities located on City property or within public rights-of- way. The City will work with Sound Transit and its D-B Contractor to provide timely review of plans submitted and to perform site inspection activities as warranted.  Review, approve, and inspect, as needed, utility relocation plans and submittals. C.5. Fire/Life/Safety Coordination. Puget Sound Regional Fire staff, contracted by the City, will review for fire/life/safety issues as they relate to Project design and construction. Deliverables  Review and provide consolidated input and comments on Project issues as they relate to Fire/Life/Safety. C.6. Maintenance of Traffic and Transportation. Under this task, City staff will review and approve maintenance of traffic (MOT) and other plans for temporary traffic controls proposed by Sound Transit’s D-B Contractor. Deliverables  Attend MOT and other meetings to discuss maintenance of traffic and transportation.  Review and approve MOT submittals provided by Sound Transit’s D-B Contractor. C.7. Right-of-Way (ROW). The purpose of coordination between the City and Sound Transit during this phase is to track and facilitate the process of required vacation of City rights-of-way and the dedication and recordation of property transfers that may be made between the Parties. Deliverables  Coordinated vacation of public rights-of-way.  Recordation of property transfers. D. Phase 3: Systems / Rail Activation / Project Closeout. D.1. Fire/Life/Safety Inspection. In this task, Puget Sound Sound Regional Fire Authority, under contract to the City of Kent, will inspect structures and other elements constructed as part of the Project to ensure that fire, life, and safety measures are certified, as appropriate, documenting their incorporation into the Project. D.2. Noise Monitoring / Testing. The City will be informed of the opportunity to review any noise analysis and/or testing through over-the-shoulder review and formal submittal of design packages related to the construction of noise wall or other mitigations to minimize LRT-generated noise. 6.a Packet Pg. 14 At t a c h m e n t : A E 0 0 4 4 - 1 2 F W L E C i t y o f K e n t T a s k O r d e r 2 a n d A t t a c h m e n t 1 ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) Task Order 2 Attachment 1 GA 0183-17 Page 7 D.3. Acceptance of City Project Infrastructure. In this task, the City will work with Sound Transit construction staff to appropriately document the acceptance of City infrastructure constructed as part of the Project. D.4. Certificates of Occupancy. The City will work with Sound Transit to ensure timely issuance of certificates of occupancy required for Project infrastructure, including LRT stations, parking garages, and other occupied structures. Deliverables  Punch list items are accepted via a letter from the City.  Building inspection service ends and the last Certificate of Occupancy is issues as appropriate.  Acceptance of record drawings. 6.a Packet Pg. 15 At t a c h m e n t : A E 0 0 4 4 - 1 2 F W L E C i t y o f K e n t T a s k O r d e r 2 a n d A t t a c h m e n t 1 ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) Packaging by D-B Contractor (Proposed Changes/60%/90%)Elements for Milestone Review City Department/Division*# of Milestone Submittals Total Plan Sheets per Milestone Submittal Mutually Agreed Upon Maximum Estimated Turnaround Time Per Submittal (Calendar Days) Package by Geographic Area Demolition Building 15-45 2-5 7 days Package by Geographic Area Civil (Walls, Road, Grading)Civil 3-15 10-90 30 Package by Geographic Area Utilities Civil 5-10 5-30 30 Package by Geographic Area Column Foundations Civil 1-10 5-20 30 Package by Geographic Area Track TBD 1-5 15-50 N/A - courtesy Package by Geographic Area Landscaping Civil 1-5 5-30 30 Each Station Station (includes foundations)Building 2-10 60-120 30 Each Station Garage (include foundations)Building 2-10 60-120 30 Package by Geographic Area Columns Structural 1-10 5-10 N/A - courtesy Systems System System 1-5 15-75 N/A - courtesy Station, Garage, Bridges Midway Design Review (60%/100% package only)Planning 3-5 10-20 30 * D-B will work with City Liaison to identify specific areas requiring resolution for each package and create a cover sheet of contents prioritized to focus City review. Permit City to Inspect (Yes/No)City Department/Division # of Permits Mutually Agreed Upon Maximum Estimated Turnaround Time Per Permit (Calendar Days) Demolition Permits Yes Civil 15-45 7 Traffic Control Plans (haul routes)Yes Civil 1-5 10 Grade and Fill Permit (includes foundation work area)Yes Civil 5-15 30 Civil Construction Permit - foundations in ROW Yes Civil 4-8 30 Civil Construction Permit - landscape in ROW Yes Civil 1-4 30 Civil Construction Permit - utilities Yes Civil TBD 10 Building Permit - TPSS foundation Yes Building 1-2 14 Building Permit - Walls Yes Building 1-12 30 Civil Construction Permit - civil improvements Yes Civil 4-6 30 Civil Construction Permit - station/ garage landscape Yes Civil 2-6 21 Building KDM garage Yes Building 2-6 60 Building KDM station Yes Building 2-6 60 Building 272nd garage Yes Building 2-6 60 Building 272nd station Yes Building 2-6 60 Building permit - garage/station foundations Yes Building 2-6 21 Mechanical Permits Yes Civil 2-6 21 Plumbing Permits Yes Civil 2-6 21 Fire Permits Yes Civil 3-8 14 Sign Permit Yes Civil 1-10 14 Electrical (TPSS feed)No N/A 1-4 14 Noise Variance for nighttime work Yes Civil 0-15 7 Notes 1. The above permits, packages, sizes and durations are a guideline and meant to further inform discussions between the D-B and AHJ. 2. If the Design-Build team's plan and packaging approach is generally within the limits shown above, the review turn around times will be met by the AHJ. Design-Build team will propose a permit plan. The plan may separate packages by geographic areas, by station, and/or by discipline. 3. Design-Build team to obtain approval of the final permit plan from AHJ. 4. Submittal frequency assumes minimum 2 working days between all AHJ submissions (minimum 7 working days between Thanksgiving and Christmas); minimum 3 working days required between submissions to the same city department/division. 5. Turnaround time is defined as the time from submission of a complete submittal and/or permit to the AHJ to the return of submission and/or permit (typically with comments) to the Design-Build team by AHJ. Duration excludes day of submission. 6. The commitment for timing of City action is contingent on an adequate level of staffing as mutually agreed by the parties and captured in a Task Order under the City Services Agreement. FWLE Preliminary Permitting Plan - Draft of Guidance to D-B City of Kent De s i g n P a c k a g e s Pe r m i t t i n g P a c k a g e s DR A F T 6.b Packet Pg. 16 At t a c h m e n t : A E 0 0 4 4 - 1 2 C i t y o f K e n t T a s k O r d e r 2 A t t a c h m e n t 2 P r e l i m i n a r y P e r m i t t i n g P l a n ( 1 8 0 9 : F W L E Task Order 2 Attachment 3 Achievement Milestones and Payment Plan Task Order 2 Attachment 3 GA 0183-17 Page 1 PHASE 1: Design Review/Early Construction (July 2019 – February 2020) Key City Activities Achievement Milestones Payment Schedule  Participate in the development, review, and approval of a Final Permitting Plan including the development of an agreed to process for expedited permit review and approval  Participate in the timely review of design submittals of early work and return consolidated and coordinated comments from all relevant City departments  Participate in resolving issues resulting from review of the design submittals  Review and approve other Contractor required plans  Review and approve plans for early work to relocate utilities  Provide accurate and timely project administration and coordination  Participate in project coordination meetings  City Liaison is co-located at Sound Transit’s construction project office  Final Permitting Plan approved by Sound Transit and City including the process to expedite permit review  Final Contractor mitigation plans approved by Sound Transit and the City  City issues permits needed to begin early construction activities, such as demolition and clearing and grading, to support Project schedule Payment 1 (October 15, 2019) Q3 2019 Staffing/Permitting - $335,000 Payment 2 (January 15, 2020) Q4 2019 Staffing/Permitting - $335,000 PHASE 2: Heavy Construction (March 2020 – March 2023) Key City Activities Achievement Milestones  Participate in permit-focused, over-the-shoulder, discipline-specific meetings described in the D-B Permitting Plan  Provide timely review and processing of design and permit submittals in a way that supports the construction approach and the overall construction schedule  Participate in resolving issues resulting from review of the design submittals  Review change orders as requested that affect City  City issues permits needed for heavy construction activities, including site construction, building, and trade permits, to support Project schedule Payment 3 (April 15, 2020) Q1 2020 Staffing/Permitting - $335,000 Payment 4 (July 15, 2020) Q2 2020 Staffing/Staffing - $335,000 Payment 5 (October 15, 2020) Q3 2020 Staffing/Permitting - $335,000 6.c Packet Pg. 17 At t a c h m e n t : A E 0 0 4 4 - 1 2 C i t y o f K e n t T a s k O r d e r 2 A t t a c h m e n t 3 M i l e s t o n e s ( 1 8 0 9 : F W L E C i t y S e r v i c e s Task Order 2 Attachment 3 Achievement Milestones and Payment Plan Task Order 2 Attachment 3 GA 0183-17 Page 2 rights-of-way  Provide timely inspection activities on infrastructure constructed as part of the Project that will be under the City’s ownership Payment 6 (January 15, 2021) Q4 2020 Staffing/Permitting - $335,000 Payment 7 (April 15, 2021) Q1 2021 Staffing/Permitting - $335,000 Payment 8 (July 15, 2021) Q2 2021 Staffing/Permitting - $335,000 Payment 9 (October 15, 2021) Q3 2021 Staffing - $335,000 Payment 10 (January 15, 2022) Q4 2021 Staffing - $335,000 Payment 11 (April 15, 2022) Q1 2022 Staffing - $335,000 Payment 12 (July 15, 2022) Q2 2022 Staffing - $335,000 Payment 13 (October 15, 2022) Q3 2022 Staffing - $335,000 Payment 14 (January 15, 2023) Q4 2022 Staffing - $335,000 Payment 15 (April 15, 2023) Q1 2023 Staffing - $335,000 6.c Packet Pg. 18 At t a c h m e n t : A E 0 0 4 4 - 1 2 C i t y o f K e n t T a s k O r d e r 2 A t t a c h m e n t 3 M i l e s t o n e s ( 1 8 0 9 : F W L E C i t y S e r v i c e s Task Order 2 Attachment 3 Achievement Milestones and Payment Plan Task Order 2 Attachment 3 GA 0183-17 Page 3 PHASE 3: Systems/Rail Activation/Project Closeout (April 2023 – Achievement of Milestones) Key City Activities Achievement Milestones  Track and facilitate the process of required vacation of City rights-of-way and dedication and recordation of property  Resolve any outstanding issues as they arise  Review and accept record drawings  Complete Acceptance of Work activities such as by issuing letters of acceptance  Complete and document inspections to ensure permitted work is executed according to permit requirements  Heavy construction and inspection activities end  Punch list items are accepted via a letter from the City  Building inspection services end and the last Certificate of Occupancy is issued as appropriate Payment 16 (July 15, 2023) Q2 2023 Staffing - $335,000 Payment 17 (October 15, 2023) Q3 2023 Staffing - $335,000 Payment 18 (January 15, 2024) Q4 2023 Staffing - $335,000 Payment 19 (April 15, 2024) Q1 2024 Staffing - $335,000 Payment 20 (Final Payment, Date TBD) Staffing - $335,000 Final payment will be made payable upon achievement of the following: 1) construction inspection activities end, 2) punch list items are accepted via a letter from the City, and 3) building inspection services end and the last Certificate of Occupancy is issued. 6.c Packet Pg. 19 At t a c h m e n t : A E 0 0 4 4 - 1 2 C i t y o f K e n t T a s k O r d e r 2 A t t a c h m e n t 3 M i l e s t o n e s ( 1 8 0 9 : F W L E C i t y S e r v i c e s Task Order 2 Attachment 3 Achievement Milestones and Payment Plan Task Order 2 Attachment 3 GA 0183-17 Page 4 CITY OF KENT INVOICE COVER TEMPLATE ISSUING COMPANY AND REMITTANCE ADDRESS Prime Firm Address Line 1 Address Line 2 Tel: (XXX) XXX-XXXX Fax: (XXX) XXX-XXXX INVOICE NUMBER XXXXXXX DATE XX/XX/XXXX Attn: Designated Representative Sound Transit Union Station 401 South Jackson Street Seattle, WA 98104-2826 PURCHASE ORDER NUMBER XXXX PRIME PROJECT NUMBER GA 0183-17 PERIOD COVERED From: XX/XX/XXXX To: XX-XX-XXXX PROJECT TITLE FWLE City of Kent Task Order 2 GA 0183-17 Total Invoice Amount $ __________ PAYMENT REQUEST NUMBER ___________________ Total To Date: Total Previously Invoiced: Amount This Invoice: Amount Paid to Date: Amount Outstanding: Original Contract Amount: Approved Change Orders: Total Authorized Contract Amount: Remaining Contract Amount: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 I certify that the charges invoiced are true and correct and include only such charges as were directly incurred in the performance of work on the project, have not been previously submitted, and are in accordance with terms of the Agreement. _____________________________________________ [Project Manager Name] [Title] 6.c Packet Pg. 20 At t a c h m e n t : A E 0 0 4 4 - 1 2 C i t y o f K e n t T a s k O r d e r 2 A t t a c h m e n t 3 M i l e s t o n e s ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) Task Order 2 Attachment 3 Achievement Milestones and Payment Plan Task Order 2 Attachment 3 GA 0183-17 Page 5 Payment Progress Detail Template (Please Submit with each invoice) Invoice #:__________________ Period covered:__________________ PHASE 1: Design Review/Early Construction Key City Activities Achievement Milestones  Participate in the development, review, and approval of a Final Permitting Plan including the development of an agreed to process for expedited permit review and approval  Participate in the timely review of design submittals of early work and return consolidated and coordinated comments from all relevant City departments  Participate in resolving issues resulting from review of the design submittals  Review and approve other Contractor required plans  Review and approve plans for early work to relocate utilities  Provide accurate and timely project administration and coordination  Participate in project coordination meetings  City Liaison is co-located at Sound Transit’s construction project office  Final Permitting Plan approved by Sound Transit and City including the process to expedite permit review  Final Contractor mitigation plans approved by Sound Transit and the City  City issues permits needed to begin early construction activities, such as demolition and clearing and grading, to support Project schedule Please insert narrative summarizing activities and progress towards achievement milestones: 6.c Packet Pg. 21 At t a c h m e n t : A E 0 0 4 4 - 1 2 C i t y o f K e n t T a s k O r d e r 2 A t t a c h m e n t 3 M i l e s t o n e s ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) Task Order 2 Attachment 3 Achievement Milestones and Payment Plan Task Order 2 Attachment 3 GA 0183-17 Page 6 Payment Progress Detail Template (Please Submit with each invoice) Invoice #:__________________ Period covered:__________________ PHASE 2: Heavy Construction Key City Activities Achievement Milestones  Participate in permit-focused, over-the- shoulder, discipline-specific meetings described in the D-B Permitting Plan  Provide timely review and processing of design and permit submittals in a way that supports the construction approach and the overall construction schedule  Participate in resolving issues resulting from review of the design submittals  Review change orders as requested that affect City rights-of-way  Provide timely inspection activities on infrastructure constructed as part of the Project that will be under the City’s ownership  City issues permits needed for heavy construction activities, including site construction, building, and trade permits, to support Project schedule Please insert narrative summarizing activities and progress towards achievement milestones: 6.c Packet Pg. 22 At t a c h m e n t : A E 0 0 4 4 - 1 2 C i t y o f K e n t T a s k O r d e r 2 A t t a c h m e n t 3 M i l e s t o n e s ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) Task Order 2 Attachment 3 Achievement Milestones and Payment Plan Task Order 2 Attachment 3 GA 0183-17 Page 7 Payment Progress Detail Template (Please Submit with each invoice) Invoice #:__________________ Period covered:__________________ PHASE 3: Systems/Rail Activation/Project Closeout Key City Activities Achievement Milestones  Track and facilitate the process of required vacation of City rights-of-way and dedication and recordation of property  Resolve any outstanding issues as they arise  Review and accept record drawings  Complete Acceptance of Work activities such as by issuing letters of acceptance  Complete and document inspections to ensure permitted work is executed according to permit requirements  Heavy construction and inspection activities end  Punch list items are accepted via a letter from the City  Building inspection services end and the last Certificate of Occupancy is issued as appropriate Please insert narrative summarizing activities and progress towards achievement milestones: 6.c Packet Pg. 23 At t a c h m e n t : A E 0 0 4 4 - 1 2 C i t y o f K e n t T a s k O r d e r 2 A t t a c h m e n t 3 M i l e s t o n e s ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) CIW SERVICES AGREEMENT BETWEEN THE CIW OF KENT AND SOUND TRANSIT FOR CIW COSTS RETATEDTO SOUNDTRANSIT PROJECT REVIEW AND PERMITTING This Agreement is entered into between the City of Kent (City), a Washington municipal corporation, and Sound Transit, a regional transit authoraty of the State of Washington for the purposes set forth below. RECITALS A. The City is a non-charter rnunicipal code city incorporated under the laws of the State of Washington, with authority to enact laws and enter into agreements to promote the health, safety, and welfare of iti citizens and for other lawful purposes. B. Sound Transit is a regionaltransit authority created pursuant to Chapters 81.104 and 81.112 RCW with all powers necessary to implement a high capacity transit system within its boundaries in King, Pierce, and Snohomish Counties. C. The City is responsible for administering state and local land use laws and development regulations that will apply to Sound Transit projects located within the City jurisdiction. The City is also responsible for managing streets and municipal utilities within its jurisdiction and for providing municipalservices such as public safety. D. The Sound Transit Long Range Transit Plan identifies the Federal Way Link Extension (FWLE) Project within the City's jurisdiction. E. Sound Transit completed environmental review of the FWLE Project with the issuance of a Final Environmental lmpact Statement (ElS) on November 18, 2016 and the Sound Transit Board identified the project to be built by passing Resolution R20!7-OZ on January 26,2O!7. The Federal Transit Administration (FTA) issued a Record of Decision on March 6,2OI7 and the Federal Highway Administration (FHWA) issued a Record or Decision on March g, ZOL7. 1. General 1.1 Purpose. Sound Transit's FWLE Project includes facilities to be constructed within the City's jurisdiction. lnteraction will be required between the City and Sound Transit to prepare, review and approve agreements, prepare construction plans and to secure property rights, permits, and approvals from the City for the construction of Sound Transit's facilities. The intent of this Agreement is to establish a task order process for Sound Transit to pay the City for the costs of providing various review and approval services that will be necessary to design, permit and construct Sound Transit facilities within the City. 2. Designated Representatives The City and Sound Transit have designated formal points of contact and coordination for this Agreement as shown below. Each designated representative is responsible for coordinating the input and work of its agency, consultants, and staff as it relates to the objectives of this Agreement. The 6.d Packet Pg. 24 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) Parties may change designated representatives by written notice to the other Party during the term of this Agreement. Task orders may designate other individuals as points of contact for each task order. e!!y Sound Transit Name Ben Wolters Title Economic & Community Dev. Director Address 400 W- Gowe Street Kent WA 98032 Phone 253-856-5703 Email bwolters@kentwa.gov Dan Abernathy Project Director 401 S. Jackson Street Seattle, WA 98104-2826 (205) 903-7170 dan.abernathy@soundtra nsit.org Name Title Address Phone Email 3. Cooperation and Good Faith Efforts 3.1 The Parties understand and agree that the activities described in this Agreement depend upon timely and open communication and cooperation between the Parties. ln this regard, communication of issues, changes, or problems that arise with any aspect of the work should occur as early as possible in the process, and not wait for explicit due dates or deadlines. Each Party agrees to work cooperatively and in good faith toward resolution of any such issues. The Parties acknowledge that this Agreement contemplates the execution and delivery of additional documents in the future, such as the Development Agreement, which will define the development regulations for this PQect and establish a vesting date, as well as the required construction permits. The Parties agree to provide the necessary resources and to work in good faith to develop the final form and contents of such documents, instruments and permits, and to execute and deliver the same promptly. 4. Environmental Review 4,1 Sound Transit ls the lead agency for compliance with SEPA. ln coordination with the City and other agencies with jurisdiction, Sound Transit has completed the substantive and procedural environmental review for the Project in accordance with SEPA requirements. The environmental review covers the City's issuance of permits for the Project as well as environrnental mitigation, and the City will use and rely upon the existing environmental documents to satisfy its SEPA responsibilities, consistent with WAC 197-LL-500. The foregoing is not intended to limit the City's authority to impose reasonable permit conditions pursuant to its development regulations, 5. Essential Public Facilities 5.1 The Parties agree that the FWLE Project is a regional transportetion facility that has the status of an essential public facility ("EPF") and that the requirements of RCW 36.70A.200 are applicable. Under RCW'36.70A, the City may not utilize development regulations to render impracticable Sound Transit's decisions on siting and location of the Project; however, the City may impose reasonable permit conditions on the Project. 6.d Packet Pg. 25 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) )6. Task Orders for City Seryices 5.1. General Aoproach. Sound Transit agrees to pay the City for the costs associated with particular tasks that: . Are required because of the implementation of Sound Transit's FWLE Project in the City and e Sound Transit asks the City to undertake. This may include tasks that Sound Transit asks the City to complete on a shorter schedule than the City would otherwise follow. City services are described in further detail in Section 5.3. ln general, Sound Transit will not pay the City for the costs associated with the following: o Coordination between Sound Transit and the City normally provided as between government agencies. City services provided in the ordinary course of business and on the City's usual time and schedule. a . CitV services that Sound Transit will pay for under existing land use, permitting, or other City fee schedules.. An exception to this exclusion would occur if a task order or other agreement establishes a different payment structure in lieu of the established payments and fees. 6,2 Task Orders. Prior to any payment under this agreement, a task order must be prepared and executed by the Parties for each work effort to be covered by this Agreement. A list of possible task orders is attached as Exhibit A. Task orders shall be in a format similar to that shown in Exhibit B. Each task order shall contain a scope of work, a detailed cost estimate, and a detailed schedule of work so that the City can determine staff resources needed for the Project. The cost estimate shall establish a maximum funding level for the task order. Each task order shall be executed by authorized representatives of Sound Transit and the City and shall incorporate by reference the provisions of this Agreement. 6.3 Citv Seruices. Task orders may address some or all of the following types of activities as appropriate to the project or phase. Each task described below is optional and should only be included in Task Orders when the City and Sound Transit agree it is appropriate. Sound Transit shall provide an overall project schedule to the City prior to executing any task order. A. Proiect Admlnistratlon. A.1. Coordination and Communication. Activities including participation at regularly scheduled project-levelcoordination meetings and providing on-going project management activities, as well as central coordination of all submittal reviews, comment coordination and consolidation, and identification of projects or proposals (i.e. municipal utility or public works projects or private development projects) that have the potential to conflict with or interfere with Sound Transit's Projects. A.2 Manasement and Administration. Project management activities including staffing, budget, and schedule management, progress reports and invoicing, and other related activities. 6.d Packet Pg. 26 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) A.3 Asreements. Review and approval of Memoranda of Understanding, Development Agreements, Services Agreements, Task Orders and other related activities. B. Desian Review. Project design review consisting of informal "over the shoulder" (OTS) reviews and formal design submittals for which the City is expected to provide formal comments to Sound Transit. 8.1. OTS Review. OTS review meetings may be scheduled on an as-needed basis to keep Project team members apprised of developments in the design process, seek feedback or concurrence from the City on aspects of the design as it is progressing, and to determine whether the design is consistent with City codes and regulations. 8.2. Formal Submittals. Sound Transit will occasionally submit design review packages to the City for formal review and comment during the earlier project phases and regularly during the permitting and construction phases. The design review packages, including specific timeframes for Sound Transit to provide advance notification to the City and for City review, are to be described in the scopes of work included in Task Orders. lf the City foresees that comments will not be returned within the agreed upon timeframe, the City shall notify Sound Transit of the delay as soon as possible so the Parties can determine an acceptable solution. City comments should identifu any aspects of the design that do not meet City codes and regulations so the inconsistency can be corrected. C, Plannino and Desion Coordinotion, C,1 Station Access lmprovernents. Coordination between the City and Sound Transit with regard to station access improvements, such as placement of kiss and ride facilities, ride share services, and other emerging technologies, transit integration, wayfinding, and non-motorized access improvements. C.2 Transit Oriented Develooment (TOF). City services to partner with Sound Transit to incorporate TOD principles during project design and permitting and to support Sound Transit in evaluating TOD opportunities on Sound Transit owned properties that will no longer be needed after construction is complete, or opportunities for development around Sound Transit facilities. C.3 Rieht-of-Wav. Coordination between the City and Sound Transit with regard to City ROW. This may include review of a Development and Transit Way Agreement, necessary temporary easements or street vacations, or any other actions/transfers involving City ROW. C.4 Joint Proiects or Partnerships. City services that meet the general approach described in Section 5.L where partnership will occur for a related separate City project, that ST may be contributing to as mitigation or project enhancement, or if there is a third party project (private, WSDOI utility) that 5T and the City need to coordinate with, or if there is something specific that ST needs to incorporate into the Sound Transit Project. D, Permlts ond Aporovals, D.1. Establish Permit Process. City coordination with Sound Transit to determine a streamlined and consolidated permitting process for the Project that would allow for the City to review and process permits in the most expeditious manner allowable under applicable laws. This may 6.d Packet Pg. 27 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) 6.4 include the preparation of a development and transit way agreement, development code amendments, or other types of documents to implement a permitting process. D.2. Permitting and lnspection Activities. City permitting activities directly related to permit processing, approval and issuance, including inspections, if these activities are not already provided for through standard permitting fees. E. Other Services. Other services as deemed appropriate by the City and Sound Transit. Elisible Costs. The following types of expenditures shall be eligible for reimbursement: Direct project costs including labor charges at the employees' current salary rates, any incremental raises they may receive during the Task Order period, applicable employee benefits and overhead. a Direct non-salary costs reimbursed at the actual cost to the City, including but not limited to travel expenses or meeting room charges. All consultant costs that are consistent with the activities identified in the Task Order Scope of Work and within the Task Order Cost Estimate. This Agreement does not cover the City's normal capital and operating expenses such as buildings, office equipment, maintenance, security, utilities, or vehicles, except those expenses normally included in the City's cost-based fee calculation for services. However, if the City requires additional personnel to fulfill its obligations under this Agreement and additional workspace is required for such personnel, the City and Sound Transit agree that the expenses for additional staff accommodations is not normal and each party agrees to negotiate the allocation of any such expenses in good faith. 6.5 Performance. lf the City does not perform the services according to the Task Orders, does not provide formal review comments within the Design Submittal review times set forth in Section 5.3, or fails to identify development code conflicts that require design changes during the permitting process and if the failure to perform is solely attributable to the City's actions or inactions, corrective action must be taken by the City. Appropriate corrective action will first be established by the City and Sound Transit Designated Representatives. Should corrective action not resolve the problem within one (1) week, the dispute resolution process may be commenced. This Section 6.5 is not intended to create any financial liability on the part of City. However, Sound Transit and the City may agree to specific resolutions including a reduction in the fees owed by Sound Transit to the City. T.lnvoicing 7.t The City shall submit invoices and supporting documentation for task order payments. The invoices must include the appropriate purchase order number, which Sound Transit will provide after execution of each task order, a cover memo including a description of services provided by the City, and supporting documentation detailing the work completed and associated costs. 7.2 The City shall submit its invoices with the required documentation via email or mail to AccountsPayable@SoundTransit.org, or Sound Transit, Accounts Payable, 401. S. Jackson St., Seattle, WA 98104-2825. Invoices are payable thirty (30) days upon Sound Transit's receipt of the invoice and a o o ) 6.d Packet Pg. 28 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) acceptable documentation. The payment documentation shall identify the invoice number and any differences between the invoice and payment. 7.3 lf Sound Transit determines that an invoice lacks sufficient documentation to support payment, Sound Transit will notify the City of its determination within five (5) business days of receipt of the invoice and request that the City provide additional documentation. Sound Transit may withhold payment for contested portions of the invoice until supporting documentation for the contested portions are provided, however such approval shall not be unreasonably withheld. 8. Suspension and Termination 8.1 lf the City has not received payment from Sound Transit as provided in Section 7, the City may suspend performance of all or any part of the associated work after giving Sound Transit thirty (30) days' notice of City's intent to do so. Such suspension shall remain in effect until payment is made in full, at which time the suspension shall be lifted. 8.2 Either Party may terminate this Agreement for cause in the event that the other Party fails to fulfill its material obligations under this Agreement in a timely manner or breaches any material provision of this Agreement and the dispute resolution process identified in Section 1.0 has failed to reach resolution within the timelines described therein. The Party wishing to terminate this Agreement for cause shall provide the other Party with notice of its intent to terminate and shall give the other Party an opportunity to correct the failure to perform or breach within thirty (30) days of the notice or within such longer period as may be necessary in the event that correction cannot reasonably be accomplished within thirty (30) days. lf the failure or breach is not corrected or cured, this Agreement may be terminated by the aggrieved party by giving ninety (90) days' notice to the other Party. 8.3 This Agreement shall also terminate with the mutual consent of both parties. 8.4 Except as provided in this Section, a termination by either Party shall not extinguish or release either Party from liability for costs or obligations existing as of the date of termination. Any costs incurred prior to proper notification of termination will be borne by the Parties in accord with the terms of this Agreement. 9.Indemnity 9.1 Each Party agrees to hold harmless, indemnify, and defend the other Party, its officers, agents, and employees, from and against any and all claims, losses or liability, for injuries, sickness or death of persons, including employees of the indemnifoing Party, or damage to property, arising out of any willful misconduct or negligent act, error, or omission of the indemnifying Party, its officers, agents, or employees, in connection with the services required by this Agreement, provided, however, that: 9.1.1 The indemnifying Party's obligations to indemnify, defend and hold harmless shall not extend to injuries, sickness, death or damage caused by or resulting from the sole willful misconduct or sole negligence of the other Party, its officers, agents or employees; and 9.1,2 The indemnifiTing Party's obligations to indemnify, defend and hold harmless for injuries, sickness, death or damage caused by or resulting from the concurrent negligence or willful misconduct of the indemnifying Party and the other Party, or of the indemnifying Party and a third party other than an officer, agent, or employee of the indemnifying Party, shall apply 6.d Packet Pg. 29 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) only to the extent of the negligence or willful misconduct of the indemnifying Party, its officers, agents, or employees. 9.2 Each Party agrees to bear full responsibility for any and all tax liabilities owed that may arise in relation to this Agreement, and each Party shall fully indemnify and hold the other Party, its officers, agents and employees harmless from any tax liability owed by other Party arising from or related to the transactions set forth herein, including, but not limited to, any taxes, penalties, fines, and/or interest that are assessed by any tax authority against the indemnifying Party and further including all attorneys' fees and costs incurred in response to any claims or assessments by any tax authority against indemnifoing Party, its officers, agents and employees. 9.3 The obligations in this Section shall survive termination or completion of this Agreement as to any claim, loss or liability arislng from events occurring prior to such termination or completion. 10. Dispute Resolution 10.1 Prior to taking or joining any action in any judicial or administrative forum to challenge actions of the other pafi associated with the Agreement, the Parties agree to follow the dispute resolution process set out in this section. t1.z The Partles agree to use their best efforts to prevent and resolve potential sources of conflict at the lowest level possible. 10.3 Any disputes or questions of interpretation of this Agreement or the performance of either Party under this Agreement that may arise between Sound Transit and the City shall be governed under the dispute resolution provisions in this Section. The Parties agree that cooperation and communication are essentialto resolving issues efficiently. 7O.4 Either Pafi may refer a dispute to the dispute resolution process by providing written notice of such referral to the other Party's Designated Representative. The Parties agree to use their best efforts to resolve disputes arising out of or related to this Agreement using good faith neBotiations by engaging in the following dispute resolution process should any such disputes arise: 10.4.1 Level One - Sound Transit's Designated Representative and the City's Designated Representative shall meet to discuss and attempt to resolve the dispute in a timely manner. lf they cannot resolve the dispute within fourteen (14) days after referral of that dispute to Level One, either party may refer the dispute to Level Two. 10.4.2 Level Two - Sound Transit's Executive Project Director, and the City's Public Works and Economic and Community Development Directors shall meet to discuss and attempt to resolve the dispute, in a timely manner. lf they cannot resolve the dispute within fourteen (14)days after referral of that dispute to Level Two, either party may refer the dispute to Level Three. 10.4.3 LevelThree - Sound Transit's Executive Director, Engineering and Construction Management or Designee and the City's Chief Administrative Officer or Designee shall meet to discuss and attempt to resolve the dispute in a timely manner. 10.5 Except as otherwise specified in this Agreement, in the event the dispute is not resolved at Level Three within fourteen (14) days after referral of that dispute to Level Three, the Parties are free to file 6.d Packet Pg. 30 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) suit, seek any available legal rernedy, or agree to alternative dispute resolution methods such as mediation. At all times prior to resolution of the dispute, the Parties shall continue to perform any undisputed obligations and make any undisputed required payments under this Agreement in the same manner and under the same terms as existed prior to the dispute. Notwithstanding anything in this Agreement to the contrary, neither party has an obligation to agree to refer the dispute to mediation nor other form of dispute resolution following completion of Level Three of the process described herein. Such agreement may be withheld for any reason or no reason. 11. Remedies and Enforcement 11.1 The Parties reserve the right to exercise any and all of the following remedies, singly or in combination, and consistent with the dispute resolution and default Sections of this Agreement, in the event the other violates any provision of this Agreement: 11.1.1 Commencing an action at law for monetary damages; II.7.2 Commencing an action for equitable or other relief; 11.1.3 Seeking specific performance of any provision that reasonably lends itself to such remedy; and/or 11.1.4 Each party shall be responsible for its own attorney's fees and costs. tL.z All remedies set forth above are cumulative and the exercise of one shall not foreclose the exercise of others. 11.3 Neither Pafi shall be relieved of its obligations to comply promptly with any provision of this Agreement by reason of any failure by the other Party to enforce prornpt compliance, and such failure to enforce shall not constitute a waiver of rights or acquiescence in the other Party's conduct. 12. Duration of Agreement L2.I This Agreement shall take effect upon the last date of signature by the Parties as set forth below. This Agreement shall remain in effect until all Sound Transit Projects contemplated by this Agreement are completed and open to the public, unless this Agreement is extended by mutual agreement of the Parties, or unless this Agreement is superseded by a future agreement or is sooner terminated as provided in Section 8 above. 13. Warranties 13.1 By execution of this Agreement, the City warrants: 13.1.1 That the City has the full right and authority to enter into and perform this Agreement, and that by entering into or performing this Agreement the City is not in violation of any law, regulation or agreement by which it is bound or to which it is bound or to which it is subject; and L3.LZ That the execution, delivery and performance of this Agreement by the City has been duly authorized by all requisite corporate action, that the signatories for the City hereto are authorized t<i sign this Agreement, and that upon approval by the City, the joinder or consent of any other party, including a court or trustee or referee, is not necessary to make valid and effective the execution, delivery and performance of this Agreement. 6.d Packet Pg. 31 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) 13.2 By execution of this Agreement, Sound Transit warrants: L3.2.L That Sound Transit has the full right and authority to enter into and perform this Agreement, and that by entering into or performing this Agreement Sound Transit is not in violation of any law, regulation or agreement by which it is bound or to which it is bound or to which it is subject; and L3.2.2 That the execution, delivery and performance of this Agreement by Sound Transit has been duly authorized by all requisite corporate action, that the signatories for Sound Transit hereto are authorized to sign this Agreement, and that upon approval by Sound Transit, the joinder or consent of any other party, including a court or trustee or referee, is not necessary to make valid and effective the execution, delivery and performance of this Agreement. 14. Administration of Agreement L4.7 This Agreernent will be jointly administered by Sound Transit's Designated Representative and the City's Designated Representative. 74.2 Each Party shall bear its own costs of administering this Agreement. 1-4.3 Each party shall be responsible for its own public records and public records requests, 15. Posting of Agreement 15.1. Pursuant to RCW 39.34.040, each party shall list this Agreement on its website by subject matter and shall post a copy in an electronically retrievable source for public viewing in accordance with its policy. 16. Assignment and Beneficiaries 15.1 Neither Pafi may assign all or any portion of this Agreement without the express written consent of the other Party. There are no third party beneficiaries to this Agreement. 17. Notices 17 '7 Unless othen^/ise provided herein, all notices and communications concerning this Agreement shall be in writing and addressed to the Designated Representative. L7.2 Unless otherwise provided herein, all notices shall be either: (i) delivered in person, (ii) deposited postage prepaid in the certified mails of the United States, return receipt requested, (iii) delivered by a nationally recognized overnight or same-day courier service that obtains receipts, or (iv) delivered electronically to the other party's Designated Representative as listed herein. However, notice under Section 7, Suspension and Termination, must be delivered in person or by certified mail, return receipt requested. 18. Audits 18.1 Sound Transit and the City shall maintain accounts and records, including contract and financial records, which sufficiently and properly reflect all direct and indirect costs of any nature expended for work performed under this Agreement so as to ensure proper accounting for all monies paid to the City by Sound Transit. These records shall be maintained for a period of six (5) years after termination or 6.d Packet Pg. 32 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) expiration of this Agreement unless permission to destroy the records is granted by the Office of the Archivist pursuant to RCW Chapter 40.14 and agreed to by the City and Sound Transit. 19. General Provisions 19.1 The Parties shall not unreasonably withhold requests for information, approvals, or consents provided for in this Agreement; provided, however, that approvals or consents required to be given by vote of the Sound Transit Board or Kent City Council are recognized to be legislative actions. The Parties agree to take further actions and execute further documents, either jointly or within their respective powers and authority, to implement the intent of this Agreement provided, however, that where such actions or documents must be first approved by vote of the Sound Transit Board or Kent City Council, such actions are recognized to be legislative actions. The City and Sound Transit agree to work cooperatively with each other to achieve the mutually agreeable goals as set forth in this Agreement. t9.2 This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State of Washington. Venue for any action under this Agreement shall be King County, Washington. 19.3 This Agreement shall be binding upon and inure to the benefit of successors and assigns of the City and Sound Transit. I9.4 Time is of the essence in every provision in this Agreement. Unless otherwise set forth in this Agreement, the reference to "days" shall mean calendar days unless otherwise noted. Any reference to "working days" shall exclude any City holidays and weekend days. lf any time for action occurs on a weekend or legal holiday, then the time period shall be extended automatically to the next business day L9.5 This Agreement is made and entered into for the sole protection and benefit of the Parties hereto and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. 19.6 No joint venture or partnership is formed as a result of this Agreement. No employees, agents or subcontractors of one party shall be deemed, or represent themselves to be, employees of any other party. 19.7 This Agreement has been reviewed and revised by legal counsel for all parties and no presumption or rule that ambiguity shall be construed against the party drafting the document shall apply to the interpretation or enforcement of this Agreernent. The Parties intend this Agreement to be interpreted to the full extent authorized by applicable law. L9.8 Each Party shall be responsible for its own costs, including legal fees, incurred in negotiating or finalizing this Agreement, unless otherwise agreed in writing by the parties. 19.9 This Agreement and related task orders may be amended only by a written instrument executed by each of the Parties hereto. 19.10 This Agreement may be executed in several counterparts, each of which shall be deemed an original, and all counterparts together shall constitute but one and the same instrument. 6.d Packet Pg. 33 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) ) 20. Severability 2O.1 ln case any term of thris Agreement shall be held invalid, illegal, or unenforceable in whole or in part, neither the validity of the remaining part of such term nor the validity of the remaining terms of this Agreement shall in any way be affected thereby. 21. Clty's Permitting and ReBulatory Authority ZJ,.L Nothing in this Agreement shall be deemed a waiver of the City's regulatory authority nor a predetermination of the compliance of the Project with applicable codes and regulations. lN WITNESS WHEREOF, each of the Parties has executed this Agreement by having its authorized representative affix his/her name in the appropriate space below: SOUND TRANSTT THE OF KENT By:By Peter M, Rogoff, Chief tive Officer Derek Matheson, Chief Administrative Officer Date: I z5^ll Date: ) Authorized by Motion No. M20r.7-68 Approved as to form: By By Amy jo ll, Senior Legal Counsel EXI.IIBITS Exhibit A: Anticipated Task Orders under this Agreement Exhibit B:Task Order Format Approved as to form: Bru ba ker,ity Attorney Authorized by pity Council Motion on +(t ff, zotz. 6.d Packet Pg. 34 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) rl Exhibit A Possible Task Orders Task Order 1 - Federal Way Link Extension Request for Proposals Preparation Phase Task Order 2 - Federal Way Link Extension Design-Build Procurement Phase Task Order 3 - Federal Way Link Extension Permitting and Pre-Construction Phase Task Order 4 - Federal Way Link Extension Construction Phase ) U 6.d Packet Pg. 35 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) Exhibit B Task Order Format CIW SERVICES AGREEMENT BETWEEN THE CIW OF XX AND SOUND TRANSIT FOR CIW SERVICES AND COSTS REI.ATED TO SOUND TRANSIT PROJECT REVIEW AND PERMITTING Task Order _: Title This Task Order is issued under the City Services Agreement between the City of XX and Sound Transit for City Services and Fees Related to Sound Transit Project Review and Permitting dated 2017. This Task Order establishes the scope, schedule, and budget for the seryices provided by the City (Services) for the Sound Transit PROJECT/PHASE. The City agrees to perform the Services in the manner set forth in this Task Order, The terms and conditions of the City Services Agreement a re incorporated into this Task Order unless expressly modified below. The effective date of this Task Order is 20_. Proiect Description. General Description of the work to he performed. May also include definitions if helpful/oppropriate. o The Scope of Work is included as Attachment 1 to this Task Order. r The Schedule is included as Attachment 2 to this Task Order. r The Cost Estimate is included as Attachment 3 to this Task Order. The authorized representatives of the parties have agreed to the terms of this Task Order by signing below. For the CitV Signature Title Date Approved as to Form: Name, City Attorney For Sound Transit Signature Title Date Approved as to Form Name, Sound Transit Legal Counsel 6.d Packet Pg. 36 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) Task Order Attachment 1: Scope of Work. Provide detoiled informotion regording City Services contemplated by each task order. l)se "Not used" for items not included in the scope for consistency among tosk orders. A, Proiect Adm inistration. A.1. Coordination and Communication. A.2 Manaeement and Administration. A.3 Agreements. B. Desien Review. 8.1. OTS Review. 8.2. Formal Submittals. C. Plannine and Desien Coordinatign. C.1 Station Access lmprovements. C.2 Transit Oriented Develooment (TOD). C.3 Risht-of:Wav. C.4 Joint Proiects or External Proiect Coordination. D. Permits and Approvals. D.1. Establish Permit Process. D.2. Permitting and lnspection Activities. E. Other Work. 6.d Packet Pg. 37 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) -) Task Order Attachment 2: Estimated Schedule. Task Start Month End Month A.1. Coordination and Communication A.2. Management and Administration A.3 Agreements 8.L. OTS Review B.2. FormalSubmittals C.1. Station Access C.2. Transit Oriented Design C.3, Right-of-Way C.4. Joint Projects or Partnerships D.1 Establish Permit Process D.2. Permitting and lnspection Activities ) t--,-rJ 6.d Packet Pg. 38 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) -Task Order Attachment 3. Cost Estimate. Contract contingency will be used per Sound Transit discretion and in accordance with signature authority procedures. Spreadsheet to be inserted. 6.d Packet Pg. 39 At t a c h m e n t : E x e c u t e d C i t y S e r v i c e s A g r e e m e n t ( 1 8 0 9 : F W L E C i t y S e r v i c e s A g r e e m e n t - T a s k O r d e r N u m b e r 2 ) OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: June 4, 2019 TO: Operations Committee SUBJECT: ICMA - RC Administrative Services Agreement MOTION: Recommend Council authorize the Mayor to sign the renewal of the City’s Administrative Services Agreement for the Deferred Compensation Plan with ICMA - RC for five years, subject to approval of final terms and conditions by the Human Resources Director and the City Attorney. SUMMARY: In April 2018 the City prepared and released a Request for Proposals (RFP) for the 457 Deferred Compensation Plan Third Party Administrator services. The City’s Deferred Compensation Plan Consultant, the Hyas Group, assisted with developing and releasing the RFP, and evaluated the responses. Eight firms responded to the RFP, including ICMA-RC. ICMA-RC was selected to retain the City’s business going forward for the following reasons:  The City’s 457 Plan Committee and staff expressed satisfaction with the services received by the City from ICMA-RC under the current contact  ICMA-RC offered a substantial fee reduction (from .08% of assets down to .035% of assets per year) to retain the business and to offer some new enhancements. This was the lowest bid submitted by any proposer in this RFP process.  ICMA-RC’s proposed contract was the most flexible  ICMA-RC received the highest combined scoring in six performance categories, in addition to offering the lowest fees  The City’s Consultant, that is a co-fiduciary to the Plan, recommended engaging ICMA-RC in a new contract ICMA- RC has been the third-party administrator for the City’s deferred compensation (457) plan for over 23 years. This plan allows employees to save for retirement on a tax deferred basis. Plan expenses are paid by the employees who contribute funds in the program. ATTACHMENTS: 7 Packet Pg. 40 1. ICMA-RC ASA (PDF) 7 Packet Pg. 41 ADMINISTRATIVE SERVICES AGREEMENT Between ICMA Retirement Corporation and City of Kent 7.a Packet Pg. 42 At t a c h m e n t : I C M A - R C A S A ( 1 8 1 2 : I C M A - R C A d m i n i s t r a t i v e S e r v i c e s A g r e e m e n t ) Plan number 301655 2 of 13 ADMINISTRATIVE SERVICES AGREEMENT This Administrative Services Agreement (“Agreement”), made as of the day of , 2018 (herein referred to as the “Inception Date”), between the International City Management Association Retirement Corporation (“ICMA-RC”), a nonprofit corporation organized and existing under the laws of the State of Delaware, and the City of Kent (“Employer”), an entity organized and existing under the laws of the State of Washington with an office at 220 4th Avenue South Kent Washington, 98032. RECITALS Employer acts as public plan sponsor of a retirement plan (“Plan”), and in that capacity, has responsibility to obtain administrative services and investment alternatives for the Plan; VantageTrust is a group trust established and maintained in accordance with New Hampshire Revised Statutes Annotated section 391:1 and Internal Revenue Service Revenue Ruling 81-100, 1981-1 C.B. 326, which provides for the commingled investment of retirement funds; ICMA-RC acts as investment adviser to VantageTrust Company, LLC, the Trustee of VantageTrust; ICMA-RC has designed, and VantageTrust offers, a series of separate funds (the “Funds”) for the investment of plan assets as referenced in VantageTrust’s principal disclosure documents, the VantageTrust Disclosure Memorandum and the Funds’ Fact Sheets (together, “VT Disclosures”); and In addition to serving as investment adviser to VantageTrust Company LLC, ICMA-RC provides a range of services to public employers for the operation of employee retirement plans including, but not limited to, communications concerning investment alternatives, account maintenance, account recordkeeping, investment and tax reporting, transaction processing, and benefit disbursement. 7.a Packet Pg. 43 At t a c h m e n t : I C M A - R C A S A ( 1 8 1 2 : I C M A - R C A d m i n i s t r a t i v e S e r v i c e s A g r e e m e n t ) Plan number 301655 3 of 13 AGREEMENTS 1. Appointment of ICMA-RC Employer hereby appoints ICMA-RC as Administrator of the Plan to perform all nondiscretionary functions necessary for the administration of the Plan. The functions to be performed by ICMA-RC shall be those set forth in Exhibit A to this Agreement. 2. Adoption of Trust Employer has adopted the Declaration of Trust of VantageTrust Company and agrees to the commingled investment of assets of the Plan within VantageTrust. Employer agrees that the investment, management, and distribution of amounts deposited in VantageTrust shall be subject to the Declaration of Trust, as it may be amended from time to time and shall also be subject to terms and conditions set forth in disclosure documents (such as the VT Disclosures or Employer Bulletins) as those terms and conditions may be adjusted from time to time. 3. Exclusivity Agreement Employer agrees that for the initial or succeeding term of this Agreement specified in Section 11, so long as ICMA-RC continues to perform in all material respects the services to be performed by it under this Agreement, Employer shall not obtain plan administration from anyone other than ICMA-RC. Employer acknowledges that ICMA- RC has agreed to the compensation to be paid to ICMA-RC under this Agreement in the expectation that ICMA-RC will be able to offset costs allocable to performing this Agreement with revenues arising from Employer's exclusive use of ICMA-RC at the rates provided herein throughout the initial or succeeding term. 4. Employer Duty to Furnish Information Employer agrees to furnish to ICMA-RC on a timely basis such information as is necessary for ICMA-RC to carry out its responsibilities as Administrator of the Plan, including information needed to allocate individual participant accounts to Funds in VantageTrust, and information as to the employment status of participants, and participant ages, addresses, and other identifying information (including tax identification numbers). Employer also agrees that it will notify ICMA-RC in a timely manner regarding changes in staff as it relates to various roles. Such notification is to be completed through the online EZLink employer contact options. ICMA-RC shall be entitled to rely upon the accuracy of any information that is furnished to it by a responsible official of the Employer or any information relating to an individual participant or beneficiary that is furnished by such participant or beneficiary, and ICMA- RC shall not be responsible for any error arising from its reliance on such information. ICMA-RC will provide reports, statements and account information to the Employer through EZLink, the online plan administrative tool. 7.a Packet Pg. 44 At t a c h m e n t : I C M A - R C A S A ( 1 8 1 2 : I C M A - R C A d m i n i s t r a t i v e S e r v i c e s A g r e e m e n t ) Plan number 301655 4 of 13 Employer is required to send in contribution information through EZLink, the online plan administration tool provided by ICMA-RC. Alternative electronic methods may be allowed, but must be approved by ICMA-RC for use. Contributions may not be sent through paper submittal documents. To the extent Employer selects third-party funds that do not have fund profile information provided to ICMA-RC through our electronic data feeds from external sources (such as Morningstar) or third party fund providers, the Employer is responsible for providing to ICMA-RC timely fund investment updates for disclosure to Plan participants. Such updates may be provided to ICMA-RC through the Employer’s investment consultant or other designated representative. 5. ICMA-RC Representations and Warranties ICMA-RC represents and warrants to Employer that: (a) ICMA-RC is a non-profit corporation with full power and authority to enter into this Agreement and to perform its obligations under this Agreement. The ability of ICMA-RC, or its wholly owned subsidiary, to serve as investment adviser to VantageTrust Company is dependent upon the continued willingness of VantageTrust Company for ICMA-RC, or its wholly owned subsidiary, to serve in that capacity. (b) ICMA-RC is an investment adviser registered as such with the U.S. Securities and Exchange Commission under the Investment Advisers Act of 1940, as amended. (c)(i) ICMA-RC shall maintain and administer the 457(b) Plan in accordance with the requirements for eligible deferred compensation plans under Section 457 of the Internal Revenue Code and other applicable federal law; provided, however, that ICMA-RC shall not be responsible for the eligible status of the 457(b) Plan in the event that the Employer directs ICMA-RC to administer the 457(b) Plan or disburse assets in a manner inconsistent with the requirements of Section 457 or otherwise causes the 457(b) Plan not to be carried out in accordance with its terms. Further, in the event that the Employer uses its own customized plan document, ICMA-RC shall not be responsible for the eligible status of the 457(b) Plan to the extent affected by terms in the Employer’s plan document that differ from those in ICMA-RC’s model plan document. ICMA-RC shall not be responsible for monitoring state or local law applicable to retirement plans or for administering the 457(b) Plan in compliance with local or state requirements regarding plan administration unless Employer notifies ICMA-RC of any such local or state requirements. 6. Employer Representations and Warranties Employer represents and warrants to ICMA-RC that: 7.a Packet Pg. 45 At t a c h m e n t : I C M A - R C A S A ( 1 8 1 2 : I C M A - R C A d m i n i s t r a t i v e S e r v i c e s A g r e e m e n t ) Plan number 301655 5 of 13 (a) Employer is organized in the form and manner recited in the opening paragraph of this Agreement with full power and authority to enter into and perform its obligations under this Agreement and to act for the Plan and participants in the manner contemplated in this Agreement. Execution, delivery, and performance of this Agreement will not conflict with any law, rule, regulation or contract by which the Employer is bound or to which it is a party. (b) Employer understands and agrees that ICMA-RC’s sole function under this Agreement is to act as recordkeeper and to provide administrative, investment or other services at the direction of Plan participants, the Employer, its agents or designees in accordance with the terms of this Agreement. Under the terms of this Agreement, ICMA-RC does not render investment advice, is neither the “Plan Administrator” nor “Plan Sponsor” as those terms are defined under applicable federal, state, or local law, and does not provide legal, tax or accounting advice with respect to the creation, adoption or operation of the Plan and its related trust. ICMA-RC does not perform any service under this Agreement that might cause ICMA-RC to be treated as a “fiduciary” of the Plan under applicable law, except, and only, to the extent that ICMA-RC provides investment advisory services to individual participants enrolled in Guided Pathways Advisory Services. (c) Employer acknowledges and agrees that ICMA-RC does not assume any responsibility with respect to the selection or retention of the Plan’s investment options. Employer shall have exclusive responsibility for the Plan’s investment options, including the selection of the applicable mutual fund share class. Where applicable, Employer understands that the VT Retirement IncomeAdvantage Fund is an investment option for the Plan and that the fund invests in a separate account available through a group variable annuity contract. By entering into this Agreement, Employer acknowledges that it has received the Important Considerations document and the VT Disclosures and that it has read the information therein concerning the VT Retirement IncomeAdvantage Fund. (d) Employer acknowledges that certain such services to be performed by ICMA-RC under this Agreement may be performed by an affiliate or agent of ICMA-RC pursuant to one or more other contractual arrangements or relationships, and that ICMA-RC reserves the right to change vendors with which it has contracted to provide services in connection with this Agreement without prior notice to Employer. (e) Employer acknowledges that it has received ICMA-RC’s Fee Disclosure Statement, prepared in substantial conformance with ERISA regulations regarding the disclosure of fees to plan sponsors. 7.a Packet Pg. 46 At t a c h m e n t : I C M A - R C A S A ( 1 8 1 2 : I C M A - R C A d m i n i s t r a t i v e S e r v i c e s A g r e e m e n t ) Plan number 301655 6 of 13 (f) Employer approves the use of its Plan in ICMA-RC external media, publications and materials. Examples include press releases announcements and inclusion of the general plan information in request for proposal responses. 7. Participation in Certain Proceedings The Employer hereby authorizes ICMA-RC to act as agent, to appear on its behalf, and to join the Employer as a necessary party in all legal proceedings involving the garnishment of benefits or the transfer of benefits pursuant to the divorce or separation of participants in the Plan. Unless Employer notifies ICMA-RC otherwise, Employer consents to the disbursement by ICMA-RC of benefits that have been garnished or transferred to a former spouse, current spouse, or child pursuant to a domestic relations order or child support order. 8. Compensation and Payment (a) Participant Fees. Plan participant accounts shall be assessed an asset-based fee to cover the costs of record-keeping and other services provided by ICMA-RC, and other costs associated with the Plans as directed by the Employer. The Employer shall work with ICMA-RC to determine the appropriate amount of the gross asset-based fee to be charged to participant accounts, which may be increased or decreased from time to time at the direction of the Employer. At the inception of this contract the participant fee shall be 0.105%. (b) Revenue Requirement. ICMA-RC shall receive total annual aggregate revenue of 0.035% of Plan assets under ICMA-RC’s administration for providing recordkeeping and other services to the Plans. Such revenue shall be deducted by ICMA-RC from amounts collected through the application of the asset-based fee described in section 8(a) prior to allocation of any participant level asset-based fees to the Administrative Allowance Account described is section 8(c) below. (c) Administrative Allowance Account. Amounts collected through the application of the asset-based fee described in section 8(a) above in excess of the Revenue Requirement specified in subsection 8(b) above, if any, shall be held in an Administrative Allowance Account (that is maintained as a Plan asset by ICMA-RC). Employer understands that the Plan administrative allowance is to be used only to pay for reasonable plan administrative expenses of the Plan or allocated to Plan participants at the instruction of the Employer. (d) Revenue Received From Investment Options. Neither ICMA-RC nor the Employer shall receive recordkeeping revenue directly from investment options made available under the Plan. ICMA-RC shall be compensated from fees collected from participant accounts through the application of the asset - Comment [GS1]: So, this “gross” fee includes both the .07% fee recently authorized by the Committee, plus the .035% fee ICMA-RC will be charging per the new agreement, described as the “Revenue Requirement” in the paragraph below. 7.a Packet Pg. 47 At t a c h m e n t : I C M A - R C A S A ( 1 8 1 2 : I C M A - R C A d m i n i s t r a t i v e S e r v i c e s A g r e e m e n t ) Plan number 301655 7 of 13 based fee described in section 8(a) above. In the event that any Plan investment options do generate revenue from plan investments, ICMA-RC shall, as directed by the Employer, credit any and all revenue back to those participant accounts invested in the option in question. (e) Compensation for Management Services to VantageTrust, Compensation for Advisory and other Services to the VT III Vantagepoint Funds and Payments from Third-Party Mutual Funds. Employer acknowledges that, in addition to amounts payable under this Agreement, ICMA-RC receives fees from VantageTrust for investment advisory services and plan and participant services furnished to VantageTrust. Employer further acknowledges that ICMA-RC, including certain of its wholly owned subsidiaries, receives compensation for advisory and other services furnished to the VT III Vantagepoint Funds, which serve as the underlying portfolios of a number of Funds offered through VantageTrust. For a VantageTrust Fund that invests substantially all of its assets in a third-party mutual fund not affiliated with ICMA-RC, ICMA-RC or its wholly owned subsidiary receives payments from the third-party mutual fund families or their service providers in the form of 12b-1 fees, service fees, compensation for sub-accounting and other services provided based on assets in the underlying third-party mutual fund. These fees are described in the VT Disclosures and ICMA-RC’s fee disclosure statement. In addition, to the extent that third party mutual funds are included in the investment line-up for the Plan, ICMA-RC receives administrative fees from its third party mutual fund settlement and clearing agent for providing administrative and other services based on assets invested in third party mutual funds; such administrative fees come from payments made by third party mutual funds to the settlement and clearing agent. (f) Redemption Fees. Redemption fees imposed by outside mutual funds in which Plan assets are invested are collected and paid to the mutual fund by ICMA-RC. ICMA-RC remits 100% of redemption fees back to the specific mutual fund to which redemption fees apply. These redemption fees and the individual mutual fund’s policy with respect to redemption fees are specified in the prospectus for the individual mutual fund and referenced in the VT Disclosures.. (g) Plus Fund Share Class. ICMA-RC shall provide the R-12 share class version of the Plus Fund as the stable value investment option in the City of Kent 457 Plan. (h) Fees for Investment Advice. ICMA-RC shall waive the standard fee of $20 for participant utilization of the on-line investment advice tool. (i) Financial Planning Break-Points. The amount of participant assets required for a participant to receive a written financial plan from ICMA-RC at no cost shall be as follows: Formatted: Font: Bold Formatted: List Paragraph, No bullets or numbering Formatted: Font: Bold Comment [GS2]: There was no mention I could find in the document of the Plus Fund share class agreed to in the RFP process, so I inserted it here. Formatted: Font: 11.5 pt, Bold Formatted: List Paragraph, No bullets or numbering Comment [GS3]: This is a continuation of the present investment advice fee policy. Formatted: Font: Bold Formatted: List Paragraph, No bullets or numbering Formatted: Font: Bold 7.a Packet Pg. 48 At t a c h m e n t : I C M A - R C A S A ( 1 8 1 2 : I C M A - R C A d m i n i s t r a t i v e S e r v i c e s A g r e e m e n t ) Plan number 301655 8 of 13 a. For a full financial plan: $100,000 in combined ICMA-RC assets, to include Plan assets, IRA’s and spousal assets held with ICMA-RC. (f)b. For a goal-specific financial plan: $50,000 in combined ICMA-RC assets, to include Plan assets, IRA’s and spousal assets held with ICMA-RC (g)(j) Payment Procedures. All payments to ICMA-RC pursuant to this Section 8 shall be made from Plan assets held by VantageTrust or received from third-party mutual funds or their service providers in connection with Plan assets invested in such third-party mutual funds, to the extent not paid by the Employer. The amount of Plan assets administered by ICMA- RC shall be adjusted as required to reflect any such payments as are made from the Plan. In the event that the Employer agrees to pay amounts owed pursuant to this Section 8 directly, any amounts unpaid and outstanding after 30 days of invoice to the Employer shall be withdrawn from Plan assets. The compensation and payment set forth in this Section 8 are contingent upon the Employer’s use of ICMA-RC’s EZLink system for contribution processing and submitting contribution funds by ACH or wire transfer on a consistent basis over the term of this Agreement. The compensation and payment set forth in this Section 8 is also contingent upon the Vantagepoint PLUS Fund as the sole stable value fund. The compensation and payment in this Section 8 will take effect July 1, 2019 or the month following receipt at a Delivery Address (defined below the signature line) if receipt is after July 1, 2019, of one fully executed copy of this Administrative Services Agreement. Employer further acknowledges and agrees that compensation and payment under this Agreement shall be subject to re-negotiation in the event that the Employer (a) chooses to implement additional mutual funds that neither (i) trade via NSCC nor (ii) meet ICMA-RC’s daily trading operational guidelines or (b) chooses to implement investment options that are not mutual funds. 8. Contribution Remittance Employer understands that amounts invested through VantageTrust are to be remitted directly to VantageTrust in accordance with instructions provided to Employer by ICMA- RC and are not to be remitted to ICMA-RC. In the event that any check or wire transfer is incorrectly labeled or transferred to ICMA-RC, ICMA-RC may return it to Employer with proper instructions. 9. Indemnification ICMA-RC shall not be responsible for any acts or omissions of any person with respect to the Plan or its related trust, other than ICMA-RC in connection with the administration Formatted: List Paragraph, No bullets or numbering Formatted: Font: Not Bold Formatted Formatted: Font: Not Bold Comment [GS4]: This is also a continuation of current financial planning fee policy. Formatted: Font: Not Bold 7.a Packet Pg. 49 At t a c h m e n t : I C M A - R C A S A ( 1 8 1 2 : I C M A - R C A d m i n i s t r a t i v e S e r v i c e s A g r e e m e n t ) Plan number 301655 9 of 13 or operation of the Plan. To the extent allowed by law, Employer shall indemnify ICMA- RC against, and hold ICMA-RC harmless from, any and all loss, damage, penalty, liability, cost, and expense, including without limitation, reasonable attorney’s fees, that may be incurred by, imposed upon, or asserted against ICMA-RC by reason of any claim, regulatory proceeding, or litigation arising from any act done or omitted to be done by any individual or person with respect to the Plan or its related trust, excepting only any and all loss, damage, penalty, liability, cost or expense resulting from ICMA-RC’s negligence, bad faith, or willful misconduct. 10. Term This Agreement shall be in effect and commence on the date all parties have signed and executed this Agreement (“Inception Date”). The term of this Agreement will commence on the Inception Date and extend five (5) years from that date. The Employer understands and agrees that, in the event the Employer terminates this Agreement (or replaces the Vantagepoint PLUS Fund of VantageTrust as an investment option in its investment line- up), ICMA-RC retains full discretion to release Plan assets invested in the Vantagepoint PLUS Fund in an orderly manner over a period of up to 12 months from the date ICMA- RC receives written notification from the Employer that it is initiating withdrawal of all or part of the Plans’ assets from the VT Vantagepoint PLUS Fund. 11. Amendments and Adjustments (a) This Agreement may be amended by written instrument signed by the parties. (b) ICMA-RC may modify this agreement by providing 60 days’ advance written notice to the Employer prior to the effective date of such proposed modification. Such modification shall become effective unless, within the 60-day notice period, the Employer notifies ICMA-RC in writing that it objects to such modification. (c) The parties agree that enhancements may be made to administrative services under this Agreement. The Employer will be notified of enhancements through the Employer Bulletin, quarterly statements, electronic messages or special mailings. Likewise, if there are any reductions in fees, these will be announced through the Employer Bulletin, quarterly statement, electronic messages or special mailing. 12. Notices All notices required to be delivered under this Agreement shall be in writing and shall be delivered, mailed, e-mailed or faxed to the location of the relevant party set forth below or to such other address or to the attention of such other persons as such party may hereafter specify by notice to the other party. ICMA-RC: Legal Department, ICMA Retirement Corporation, 777 North Capitol Street, N.E., Suite 600, Washington, D.C., 20002-4240 Facsimile; (202) 962-4601 7.a Packet Pg. 50 At t a c h m e n t : I C M A - R C A S A ( 1 8 1 2 : I C M A - R C A d m i n i s t r a t i v e S e r v i c e s A g r e e m e n t ) Plan number 301655 10 of 13 Employer: at the office set forth in the first paragraph hereof, or to any other address, facsimile number or e-mail address designated by the Employer to receive the same by written notice similarly given. Each such notice, request or other communication shall be effective: (i) if given by facsimile, when transmitted to the applicable facsimile number and there is appropriate confirmation of receipt; (ii) if given by mail or e-mail, upon transmission to the designated address with no indication that such address is invalid or incorrect; or (iii) if given by any other means, when actually delivered at the aforesaid address. 13. Complete Agreement This Agreement shall constitute the complete and full understanding and sole agreement between ICMA-RC and Employer relating to the object of this Agreement and correctly sets forth the complete rights, duties and obligations of each party to the other as of its date. This Agreement supersedes all written and oral agreements, communications or negotiations among the parties. Any prior agreements, promises, negotiations or representations, verbal or otherwise, not expressly set forth in this Agreement are of no force and effect. 14. Titles The headings of Sections of this Agreement and the headings for each of the attached schedules are for convenience only and do not define or limit the contents thereof. 15. Incorporation of Exhibits All Exhibits (and any subsequent amendments thereto), attached hereto, and referenced herein, are hereby incorporated within this Agreement as if set forth fully herein. 16. Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of Washington, applicable to contracts made in that jurisdiction without reference to its conflicts of laws provisions. 7.a Packet Pg. 51 At t a c h m e n t : I C M A - R C A S A ( 1 8 1 2 : I C M A - R C A d m i n i s t r a t i v e S e r v i c e s A g r e e m e n t ) Plan number 301655 11 of 13 In Witness Whereof, the parties hereto certify that they have read and understand this Agreement and all Schedules attached hereto and have caused this Agreement to be executed by their duly authorized officers as of the Inception Date first above written. CITY OF KENT By _____________________________ Signature/Date By _____________________________ Name and Title (Please Print) INTERNATIONAL CITY MANAGEMENT ASSOCIATION RETIREMENT CORPORATION By _____________________________ Erica McFarquhar Assistant Secretary Please return an executed copy of the Agreement to a Delivery Address, either: (a) Electronically to PlanAdoptionServices@icmarc.org, or (b) In paper form to ICMA-RC ATTN: PLAN ADOPTION SERVICES 777 North Capitol Street NE Suite 600 Washington DC 20002-4240 7.a Packet Pg. 52 At t a c h m e n t : I C M A - R C A S A ( 1 8 1 2 : I C M A - R C A d m i n i s t r a t i v e S e r v i c e s A g r e e m e n t ) Plan number 301655 12 of 13 Exhibit A Administrative Services The administrative services to be performed by ICMA-RC under this Agreement shall be as follows: (a) Participant enrollment services, including providing a welcome package and enrollment kit containing instructions and notices necessary to implement the Plan’s administration. Employees will enroll online or through a paper form. Employer can also enroll employees through EZLink. (b) Establishment of participant accounts for each employee participating in the Plan for whom ICMA-RC receives appropriate enrollment instructions. ICMA-RC is not responsible for determining if such Plan participants are eligible under the terms of the Plan. (c) Allocation in accordance with participant directions received in good order of individual participant accounts to investment funds offered under the Plan. (d) Maintenance of individual accounts for participants reflecting amounts deferred, income, gain or loss credited, and amounts distributed as benefits. (e) Maintenance of records for all participants for whom participant accounts have been established. These files shall include enrollment instructions (provided to ICMA- RC through Account Access or EZLink), beneficiary designation instructions and all other documents concerning each participant's account. (f) Provision of periodic reports to the Employer through EZLink. Participants will have access to account information through Investor Services, Voice Response System, Account Access, TextAccess and through quarterly statements that can be delivered electronically through Account Access or by postal service. (g) Communication to participants of information regarding their rights and elections under the Plan. (h) Making available Investor Services Representatives through a toll-free telephone number from 8:30 a.m. to 9:00 p.m. Eastern Time, Monday through Friday (excluding holidays and days on which the securities markets or ICMA-RC are closed for business (including emergency closings)), to assist participants. (i) Making available access to ICMA-RC’s web site, to allow participants to access certain account information and initiate certain plan transactions at any time. Account access is normally available 24 hours a day, seven days a week except during scheduled maintenance periods designed to ensure high- quality performance. The scheduled maintenance window is outlined at https://harper1.icmarc.org/login.jsp. (j) Maintaining the security and confidentiality of client information through a system of controls including but not limited to, as appropriate: restricting plan and participant information only to those who need it to provide services, software 7.a Packet Pg. 53 At t a c h m e n t : I C M A - R C A S A ( 1 8 1 2 : I C M A - R C A d m i n i s t r a t i v e S e r v i c e s A g r e e m e n t ) Plan number 301655 13 of 13 and hardware security, access controls, data back-up and storage procedures, non- disclosure agreements, security incident response procedures, and audit reviews. (k) Making available access to ICMA-RC’s plan sponsor EZLink web site to allow plan sponsors to access certain plan information and initiate plan transactions such as enrolling participants and managing contributions at any time. EZLink is normally available 24 hours a day, seven days a week except during scheduled maintenance periods designed to ensure high-quality performance. The scheduled maintenance window is outlined at https://harper1.icmarc.org/login.jsp. (l) Distribution of benefits as agent for the Employer in accordance with terms of the Plan. Participants who have separated from service can request distributions through Account Access or via form. (m) Upon approval by the Employer that a domestic relations order is an acceptable qualified domestic relations order under the terms of the Plan, ICMA-RC will establish a separate account record for the alternate payee and provide for the investment and distribution of assets held thereunder. (n) Loans may be made available on the terms specified in the Loan Guidelines, if loans are adopted by the Employer. Participants can request loans through Account Access. If allowed by the City, loans will be available to both active and separated participants. (o) Guided Pathways Advisory Services – ICMA-RC’s participant advice service, “Fund Advice”, and asset allocation service, “Asset Class Guidance” may be made available through a third party vendor on the terms specified on ICMA- RC’s website. If allowed by the City, the Guided Pathway Managed Account Service may be made available to separated/retired employees only. (p) ICMA-RC will determine appropriate delivery method (electronic and/or print) for plan sponsor/participant communications and education based on a number of factors (audience, effectiveness, etc.). 7.a Packet Pg. 54 At t a c h m e n t : I C M A - R C A S A ( 1 8 1 2 : I C M A - R C A d m i n i s t r a t i v e S e r v i c e s A g r e e m e n t ) OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: June 4, 2019 TO: Operations Committee SUBJECT: April Financial Report SUMMARY: The Finance Director will report out the April 2019 financial report. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services ATTACHMENTS: 1. April 2019 Monthly Report (PDF) 8 Packet Pg. 55 2019 Adj Budget 2019 YTD 2019 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) Revenues 107,690,250 40,116,607 109,993,320 2,303,070 2.1% Expenditures 108,683,707 29,289,447 108,198,810 484,897 0.4% Net Revenues Less Expenditures (993,457) 10,827,161 1,794,510 2,787,967 Beginning Fund Balance 23,341,440 23,341,440 Ending Fund Balance 22,347,983 25,135,950 Ending Fund Balance Detail: General Fund Reserves 22,024,193 23,931,880 20.3%22.1% Restricted for Annexation 323,790 1,204,070 Revenue Overview Expenditures Overview Required Ending Fund Balance Calculation Estimated Expenditures for 2019 (from above)108,198,810 18.0% 18% GF Ending Fund Balance 19,475,786 April 2019 Monthly Financial Report City of Kent, Washington General Fund Overview Summary Analysis through April shows an overall positive budget variance of $2.8 million. The budgeted use of fund balance is offset by the positive budget variance of $2.8 million, creating a net surplus of $1.8m. General Fund Reserves are estimated to end the year at $23.9 million, or 22.1% of estimated 2019 expenditures. Revenues are estimated to end the year approximately $2.3 million (2.1%) higher than budgeted. Through April, all departments are remaining fairly close to budget with an overall budget variance of $485 thousand or 0.4%. 2.06 0.83 0.64 4.13 7.65 9.46 11.91 18.92 20.65 21.67 23.93 0.00 5.00 10.00 15.00 20.00 25.00 30.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Est. 2019 General Fund Ending Fund Balance 10-year History (excluding Annexation)$ in millions Page 1 of 14 8.a Packet Pg. 56 At t a c h m e n t : A p r i l 2 0 1 9 M o n t h l y R e p o r t ( 1 8 1 0 : A p r i l F i n a n c i a l R e p o r t ) Revenue Categories 2019 Adj Budget 2019 YTD 2019 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) Taxes: Property 29,978,040 13,395,409 29,648,250 (329,790) -1.1% Sales & Use 21,770,980 8,391,605 23,801,030 2,030,050 9.3% Utility 19,596,150 6,857,086 19,228,000 (368,150) -1.9% Business & Occupation 11,500,000 2,318,444 11,513,220 13,220 0.1% Other 882,650 212,261 860,130 (22,520) -2.6% Licenses and Permits 7,082,370 2,862,809 7,444,420 362,050 5.1% Intergovernmental Revenue 6,713,830 2,080,407 6,915,010 201,180 3.0% Charges for Services 6,001,180 2,913,525 6,389,300 388,120 6.5% Fines and Forfeitures 1,113,790 389,137 1,163,600 49,810 4.5% Miscellaneous Revenue 2,135,530 695,923 2,080,360 (55,170) -2.6% Transfers In 915,730 - 950,000 34,270 3.7% Total Revenues 107,690,250 40,116,607 109,993,320 2,303,070 2.1% April 2019 Monthly Financial Report City of Kent, Washington General Fund Overview - Revenues Variance analysis for revenues is provided for particular line items or those in which the estimated actual amount differs from the budgeted amount by at least 10% or minimum of $500,000. Variance Notes Sales & Use Tax: $2.0m increase due to higher than anticipated sales tax revenues, including $545k in annexation sales tax revenue, due to a strong construction economy. 2019 Estimated General Fund Revenues Property Taxes 27% Sales Taxes 22% Utility Taxes 17% B&O Taxes 10% Other Taxes 1% Licenses and Permits 7% Intergovernmental 7% Charges for Services 6% Fines and Forfeits Misc & Transfers In 3% Other 16% Page 2 of 14 8.a Packet Pg. 57 At t a c h m e n t : A p r i l 2 0 1 9 M o n t h l y R e p o r t ( 1 8 1 0 : A p r i l F i n a n c i a l R e p o r t ) Prior Year Revenues Budgeted Revenues Actual Revenues January 5,721 6,214 6,540 February 5,542 5,546 5,521 March 7,432 8,268 7,624 April 18,343 17,451 20,431 May 8,891 7,922 0 June 6,778 6,751 0 July 8,084 7,508 0 August 5,496 5,734 0 September 6,935 7,276 0 October 19,388 18,068 0 November 8,117 7,122 0 December 10,353 9,831 0 Total 111,081 107,690 40,117 Prior Year Revenues Budgeted Revenues Actual Revenues January 0 10 32 February 213 225 230 March 736 953 866 April 12,768 12,204 12,268 May 1,860 2,172 0 June 121 158 0 July 269 111 0 August 104 110 0 September 327 591 0 October 11,934 11,603 0 November 1,432 1,589 0 December 207 251 0 Total 29,971 29,978 13,395 Prior Year Revenues Budgeted Revenues Actual Revenues January 1,761 1,626 2,060 February 2,045 2,037 2,485 March 1,810 1,611 2,058 April 1,604 1,564 1,788 May 2,074 1,834 0 June 2,019 1,618 0 July 2,000 1,752 0 August 2,152 1,966 0 September 2,066 1,808 0 October 2,056 1,811 0 November 2,261 1,983 0 December 2,851 2,162 0 Total 24,699 21,771 8,392 April 2019 Monthly Financial Report City of Kent, Washington General Fund Revenues ($ in Thousands) All Revenues Sources Property Tax Sales Tax $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act Page 3 of 14 8.a Packet Pg. 58 At t a c h m e n t : A p r i l 2 0 1 9 M o n t h l y R e p o r t ( 1 8 1 0 : A p r i l F i n a n c i a l R e p o r t ) April 2019 Monthly Financial Report City of Kent, Washington General Fund Revenues ($ in Thousands) Prior Year Revenues Budgeted Revenues Actual Revenues January 1,860 2,082 1,887 February 1,771 1,748 1,583 March 1,719 1,669 1,680 April 1,737 1,840 1,707 May 1,602 1,542 0 June 1,447 1,419 0 July 1,647 1,739 0 August 1,482 1,482 0 September 1,560 1,681 0 October 1,427 1,479 0 November 1,537 1,494 0 December 1,499 1,422 0 Total 19,289 19,596 6,857 Prior Year Revenues Budgeted Revenues Actual Revenues January 1 6 2 February 3 14 2 March 33 261 48 April 322 1,785 2,479 May 1,688 844 0 June 223 175 0 July 2,011 2,286 0 August 340 446 0 September 145 129 0 October 2,100 2,530 0 November 252 417 0 December 3,378 3,491 0 Total 10,496 12,383 2,531 Prior Year Revenues Budgeted Revenues Actual Revenues January 2,099 1,892 2,560 February 1,510 933 1,221 March 3,135 2,770 2,972 April 1,912 1,687 2,189 May 1,667 1,547 0 June 2,968 2,853 0 July 2,157 1,734 0 August 1,419 1,423 0 September 2,836 2,722 0 October 1,870 1,971 0 November 2,634 1,483 0 December 2,417 2,948 0 Total 26,625 23,962 8,942 Utility Tax Other Taxes Other Revenues (Intergovernmental, Licenses & Permits, Charges for Service, Fines & Forfeits, and Misc Revenues) $0 $5,000 $10,000 $15,000 $20,000 $25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act $0 $2,000 $4,000 $6,000 $8,000 $10,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act Page 4 of 14 8.a Packet Pg. 59 At t a c h m e n t : A p r i l 2 0 1 9 M o n t h l y R e p o r t ( 1 8 1 0 : A p r i l F i n a n c i a l R e p o r t ) Department 2019 Adj Budget 2019 YTD 2019 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) City Council 439,470 134,101 418,900 20,570 4.7% Mayor's Office/City Clerk 3,200,990 1,018,569 3,173,400 27,590 0.9% Economic & Community Dev 7,361,170 2,251,295 7,227,800 133,370 1.8% Finance 3,343,890 1,134,856 3,324,900 18,990 0.6% Fire Contracted Services 3,905,690 1,003,320 3,773,100 132,590 3.4% Human Resources 2,204,610 722,670 2,081,800 122,810 5.6% Information Technology 528,260 168,725 518,800 9,460 1.8% Law 1,829,200 586,239 1,812,000 17,200 0.9% Municipal Court 3,517,560 1,162,953 3,526,200 (8,640) -0.2% Parks, Recreation & Comm Svcs 19,138,697 5,832,832 19,122,100 16,597 0.1% Police 42,731,380 13,930,996 42,724,500 6,880 0.0% Public Works 1,142,280 395,139 1,154,800 (12,520) -1.1% Non-Departmental 19,340,510 947,751 19,340,510 Total Expenditures 108,683,707 29,289,447 108,198,810 484,897 0.4% April 2019 Monthly Financial Report City of Kent, Washington General Fund Overview - Expenditures Variance analysis for expenditures is provided for particular departments or those in which the estimated actual amount differs from the budgeted amount by at least 10% or a minimum of $500,000. Variance Notes None. City Council Mayor's Office/City Clerk 3% ECD 7%Finance 3%Fire Contracted Services 4% Human Resources 2% I.T. Law 2% Municipal Court 3% Parks, Recreation & Comm Svcs 18% Police 39% Public Works 1% Non-Departmental 18% Other 5% 2019 Estimated General Fund Expenditures Page 5 of 14 8.a Packet Pg. 60 At t a c h m e n t : A p r i l 2 0 1 9 M o n t h l y R e p o r t ( 1 8 1 0 : A p r i l F i n a n c i a l R e p o r t ) 2017 2018 2019 2019 2019 Actual Actual Adj Budget YTD Est Actual Beginning Fund Balance 19,987,828 21,595,175 23,341,440 23,341,440 23,341,440 Revenues Taxes: Property 22,999,864 29,971,155 29,978,040 13,395,409 29,648,250 Sales & Use 21,109,277 24,699,301 21,770,980 8,391,605 23,801,030 Utility 19,648,349 19,289,162 19,596,150 6,857,086 19,228,000 Business & Occupation 9,141,800 9,422,048 11,500,000 2,318,444 11,513,220 Other 900,663 1,074,356 882,650 212,261 860,130 Licenses and Permits 6,962,130 7,557,658 7,082,370 2,862,809 7,444,420 Intergovernmental Revenue 8,102,414 7,919,860 6,713,830 2,080,407 6,915,010 Charges for Services 7,328,567 6,602,681 6,001,180 2,913,525 6,389,300 Fines and Forfeitures 1,549,964 1,360,976 1,113,790 389,137 1,163,600 Miscellaneous Revenue 2,241,585 2,233,777 2,135,530 695,923 2,080,360 Transfers In 934,128 950,000 915,730 - 950,000 Total Revenues 100,918,740 111,080,973 107,690,250 40,116,607 109,993,320 Expenditures City Council 349,577 344,160 439,470 134,101 418,900 Mayor's Office/City Clerk 2,745,792 2,759,974 3,200,990 1,018,569 3,173,400 Economic & Community Dev 5,841,098 6,675,576 7,361,170 2,251,295 7,227,800 Finance 2,522,554 3,061,472 3,343,890 1,134,856 3,324,900 Fire Contracted Services 3,668,180 3,619,385 3,905,690 1,003,320 3,773,100 Human Resources 1,835,276 2,075,553 2,204,610 722,670 2,081,800 Information Technology 521,151 506,265 528,260 168,725 518,800 Law 1,600,451 1,673,438 1,829,200 586,239 1,812,000 Municipal Court 3,128,652 3,442,107 3,517,560 1,162,953 3,526,200 Parks, Recreation & Comm Svcs 16,655,356 17,992,171 19,138,697 5,832,832 19,122,100 Police 37,167,622 39,315,958 42,731,380 13,930,996 42,724,500 Public Works 1,111,563 1,155,562 1,142,280 395,139 1,154,800 Non-Departmental 22,164,122 26,706,702 19,340,510 947,751 19,340,510 Total Expenditures 99,311,394 109,328,323 108,683,707 29,289,447 108,198,810 Net Revenues less Expenditures 1,607,347 1,752,650 (993,457) 10,827,161 1,794,510 Ending Fund Balance 21,595,175 23,347,825 22,347,983 34,168,600 25,135,950 Ending Fund Balance Detail: General Fund Reserves 20,654,415 21,666,605 22,024,193 23,931,880 based on same year actuals/budget 20.8% 19.8% 20.3% 22.1% Restricted for Annexation 940,760 1,681,220 323,790 1,204,070 April 2019 Monthly Financial Report City of Kent, Washington General Fund Page 6 of 14 8.a Packet Pg. 61 At t a c h m e n t : A p r i l 2 0 1 9 M o n t h l y R e p o r t ( 1 8 1 0 : A p r i l F i n a n c i a l R e p o r t ) 2017 2018 2019 % of thru April thru April thru April Budget Revenues Taxes: Property 10,675,686 13,716,455 13,395,409 (321,045) -2.3%44.7% Sales & Use 6,768,552 7,219,404 8,391,605 1,172,201 16.2%38.5% Utility 7,282,264 7,087,202 6,857,086 (230,116) -3.2%35.0% Business & Occupation 2,236,288 65,012 2,318,444 2,253,432 3466.2%20.2% Other 207,578 293,960 212,261 (81,700) -27.8%24.0% Licenses and Permits 2,233,268 2,615,260 2,862,809 247,550 9.5%40.4% Intergovernmental Revenue 2,132,055 2,233,839 2,080,407 (153,432) -6.9%31.0% Charges for Services 2,345,724 2,779,943 2,913,525 133,582 4.8%48.5% Fines and Forfeitures 690,076 375,033 389,137 14,104 3.8%34.9% Miscellaneous Revenue 625,388 651,558 695,923 44,365 6.8%32.6% Transfers In - - - - Total Revenues 35,196,880 37,037,665 40,116,607 3,078,942 8.3%37.3% Expenditures City Council 128,271 129,263 134,101 4,838 3.7%30.5% Mayor's Office/City Clerk 813,311 888,550 1,018,569 130,020 14.6%31.8% Economic & Community Dev 1,862,136 2,245,982 2,251,295 5,313 0.2%30.6% Finance 751,673 955,440 1,134,856 179,416 18.8%33.9% Fire Contracted Services 982,360 1,099,529 1,003,320 (96,210) -8.8%25.7% Human Resources 566,309 704,803 722,670 17,867 2.5%32.8% Information Technology 194,345 170,049 168,725 (1,324) -0.8%31.9% Law 506,446 582,513 586,239 3,726 0.6%32.0% Municipal Court 1,022,127 1,087,703 1,162,953 75,250 6.9%33.1% Parks, Recreation & Comm Svcs 4,977,149 5,327,248 5,832,832 505,585 9.5%30.5% Police 11,967,125 12,640,510 13,930,996 1,290,486 10.2%32.6% Public Works 394,544 380,665 395,139 14,473 3.8%34.6% Non-Departmental 233,430 1,114,909 947,751 (167,157) -15.0%4.9% Total Expenditures 24,399,226 27,327,163 29,289,447 1,962,284 7.2%26.9% *General Govt. includes City Council, Mayor/Clerk, HR, IT, & Finance Variance April 2019 Monthly Financial Report City of Kent, Washington General Fund Year-to-Year Month Comparison 2019-18 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 Property Taxes Sales & Use Taxes Utility Taxes Other Revenues GF Revenues thru April 2017 2018 2019 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 Police Parks *General Govt. ECD Non-Dept & Other GF Expenditures thru April 2017 2018 2019 Page 7 of 14 8.a Packet Pg. 62 At t a c h m e n t : A p r i l 2 0 1 9 M o n t h l y R e p o r t ( 1 8 1 0 : A p r i l F i n a n c i a l R e p o r t ) 2019 2019 2019 2019 Beginning Fund Balance Estimated Revenues Estimated Expenditures Ending Fund Balance Operating revenues and expenditures only; capital and non-capital projects are excluded. General Fund 23,341,440 109,993,320 108,198,810 25,135,950 Street Fund 5,416,967 17,885,720 19,632,150 3,670,537 LEOFF 1 Retiree Benefits 1,872,112 1,179,590 1,423,000 1,628,702 Lodging Tax 336,765 294,830 510,790 120,805 Youth/Teen Programs 91,846 957,730 957,730 91,846 Capital Resources 15,599,192 16,241,910 20,601,850 11,239,252 Criminal Justice 7,247,796 6,320,530 6,003,100 7,565,226 ShoWare Operating 2,563,460 1,150,000 1,423,790 2,289,670 Other Operating 587,401 112,670 112,670 587,401 Councilmanic Debt Service 1,451,046 10,266,810 9,803,310 1,914,546 Special Assessments Debt Service 479,916 1,305,380 1,119,460 665,836 Water Utility 20,822,197 29,589,060 36,223,500 14,187,757 Sewer Utility 6,829,754 31,820,310 31,668,150 6,981,914 Drainage Utility 17,562,223 23,348,620 29,678,070 11,232,773 Solid Waste Utility 466,749 892,980 874,520 485,209 Golf Complex (3,816,932) 2,819,210 2,970,790 (3,968,512) Fleet Services 5,869,149 6,707,070 7,593,460 4,982,759 Central Services 15,044 396,000 387,290 23,754 Information Technology 3,348,099 8,919,250 9,079,150 3,188,199 Facilities 2,316,961 5,754,880 5,838,450 2,233,391 Unemployment 1,401,222 121,700 313,610 1,209,312 Workers Compensation 3,478,730 1,094,000 1,456,980 3,115,750 Employee Health & Wellness 3,886,427 15,052,030 14,898,160 4,040,297 Liability Insurance 878,314 1,810,690 2,017,600 671,404 Property Insurance 607,537 1,365,920 1,332,100 641,357 Enterprise Funds Internal Service Funds Fund Balances April 2019 Monthly Financial Report City of Kent, Washington General Fund Special Revenue Funds Debt Service Funds Page 8 of 14 8.a Packet Pg. 63 At t a c h m e n t : A p r i l 2 0 1 9 M o n t h l y R e p o r t ( 1 8 1 0 : A p r i l F i n a n c i a l R e p o r t ) 2017 2018 2019 2019 2019 Actual Actual Budget YTD Est Actual Operating revenues and expenditures only; capital and non-capital projects are excluded. In instances where expenditures exceed revenues, fund balance is being utilized. Street Fund Revenues 14,407,771 15,241,855 17,345,420 4,610,826 17,885,720 Expenditures 12,511,397 15,698,374 19,632,152 4,975,389 19,632,150 Net Revenues Less Expenditures 1,896,373 (456,519)(2,286,732)(364,563)(1,746,430) LEOFF 1 Retiree Benefits Revenues 1,285,285 1,948,504 1,179,590 82,605 1,179,590 Expenditures 1,163,174 1,372,764 1,423,000 470,664 1,423,000 Net Revenues Less Expenditures 122,111 575,740 (243,410)(388,060)(243,410) Lodging Tax Revenues 316,975 320,774 294,830 74,449 294,830 Expenditures 328,804 441,566 510,790 52,346 510,790 Net Revenues Less Expenditures (11,830)(120,791)(215,960)22,103 (215,960) Youth/Teen Programs Revenues 955,757 928,958 957,730 335,616 957,730 Expenditures 942,000 942,000 957,730 957,730 Net Revenues Less Expenditures 13,757 (13,042)335,616 Capital Resources Revenues 19,948,247 22,962,097 16,169,310 4,466,859 16,241,910 Expenditures 15,579,639 23,009,239 20,601,850 1,940,784 20,601,850 Net Revenues Less Expenditures 4,368,607 (47,142)(4,432,540)2,526,075 (4,359,940) Criminal Justice Revenues 6,032,589 5,141,297 6,300,130 1,778,475 6,320,530 Expenditures 4,533,302 5,090,504 6,003,100 2,230,976 6,003,100 Net Revenues Less Expenditures 1,499,287 50,792 297,030 (452,501)317,430 ShoWare Operating Revenues 1,355,226 1,502,759 1,150,000 123,819 1,150,000 Expenditures 1,067,836 1,373,763 1,423,790 156,025 1,423,790 Net Revenues Less Expenditures 287,390 128,996 (273,790)(32,205)(273,790) Other Operating Revenues 129,338 133,288 112,670 112,670 Expenditures 40,094 72,045 112,670 22,165 112,670 Net Revenues Less Expenditures 89,244 61,243 (22,165) Councilmanic Debt Service Revenues 10,781,229 10,535,010 10,266,810 10,266,810 Expenditures 10,316,403 10,070,185 9,803,310 15,923 9,803,310 Net Revenues Less Expenditures 464,826 464,826 463,500 (15,923)463,500 Special Assessment Debt Service Revenues 1,979,573 1,458,264 1,305,380 69,312 1,305,380 Expenditures 2,585,818 1,561,009 1,119,460 180,072 1,119,460 Net Revenues Less Expenditures (606,245)(102,745)185,920 (110,760)185,920 Debt Service Funds April 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Special Revenue Funds Page 9 of 14 8.a Packet Pg. 64 At t a c h m e n t : A p r i l 2 0 1 9 M o n t h l y R e p o r t ( 1 8 1 0 : A p r i l F i n a n c i a l R e p o r t ) 2017 2018 2019 2019 2019 Actual Actual Budget YTD Est Actual Operating revenues and expenditures only; capital and non-capital projects are excluded. In instances where expenditures exceed revenues, fund balance is being utilized. April 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Water Utility Revenues 28,209,235 29,438,960 29,589,060 8,681,989 29,589,060 Expenditures 26,577,932 28,004,249 36,223,500 4,868,620 36,223,500 Net Revenues Less Expenditures 1,631,303 1,434,710 (6,634,440)3,813,369 (6,634,440) Sewer Utility Revenues 31,820,310 10,600,038 31,820,310 Expenditures 31,668,150 9,548,603 31,668,150 Net Revenues Less Expenditures 152,160 1,051,435 152,160 Note: Sewer Utility was combined with Drainage Utility in 2017 & 2018. Drainage Utility Revenues 54,240,288 57,343,023 23,343,620 8,520,589 23,348,620 Expenditures 49,060,469 56,879,160 29,678,070 4,319,985 29,678,070 Net Revenues Less Expenditures 5,179,819 463,863 (6,334,450)4,200,604 (6,329,450) Solid Waste Utility Revenues 754,868 799,794 892,980 230,075 892,980 Expenditures 577,964 812,476 874,520 224,435 874,520 Net Revenues Less Expenditures 176,904 (12,682)18,460 5,640 18,460 Golf Complex Revenues 3,027,079 9,229,538 2,819,210 553,108 2,819,210 Expenditures 3,081,308 6,467,553 2,970,790 845,950 2,970,790 Net Revenues Less Expenditures (54,229)2,761,985 (151,580)(292,842)(151,580) Fleet Services Revenues 5,480,210 5,686,534 6,707,070 3,507,122 6,707,070 Expenditures 4,164,630 7,286,339 7,593,460 2,755,391 7,593,460 Net Revenues Less Expenditures 1,315,580 (1,599,805)(886,390)751,731 (886,390) Central Services Revenues 350,602 375,410 447,090 107,819 396,000 Expenditures 290,147 357,253 387,290 81,662 387,290 Net Revenues Less Expenditures 60,455 18,157 59,800 26,157 8,710 Information Technology Revenues 8,173,478 8,416,261 9,138,700 3,520,415 8,919,250 Expenditures 8,175,302 8,676,906 9,079,150 2,665,877 9,079,150 Net Revenues Less Expenditures (1,824)(260,645)59,550 854,539 (159,900) Facilities Revenues 4,737,520 4,941,020 5,754,880 1,763,675 5,754,880 Expenditures 4,761,950 4,933,077 5,838,450 1,366,178 5,838,450 Net Revenues Less Expenditures (24,429)7,943 (83,570)397,497 (83,570) Unemployment Revenues 167,215 158,565 121,700 54,231 121,700 Expenditures 75,154 181,851 313,610 81,978 313,610 Net Revenues Less Expenditures 92,061 (23,286)(191,910)(27,747)(191,910) Enterprise Funds Internal Service Funds Note: Golf revenues include proceeds from the sale of land of $500k in 2017 and $6m in 2018. 2018 Exp include $3.3m transfer to Capital Projects Page 10 of 14 8.a Packet Pg. 65 At t a c h m e n t : A p r i l 2 0 1 9 M o n t h l y R e p o r t ( 1 8 1 0 : A p r i l F i n a n c i a l R e p o r t ) 2017 2018 2019 2019 2019 Actual Actual Budget YTD Est Actual Operating revenues and expenditures only; capital and non-capital projects are excluded. In instances where expenditures exceed revenues, fund balance is being utilized. April 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Workers Compensation Revenues 1,082,091 1,829,452 1,094,000 407,015 1,094,000 Expenditures 1,013,278 725,048 1,456,980 407,042 1,456,980 Net Revenues Less Expenditures 68,813 1,104,404 (362,980)(27)(362,980) Employee Health & Wellness Revenues 11,707,967 13,857,791 15,052,030 4,943,039 15,052,030 Expenditures 13,428,552 12,931,931 14,898,160 4,182,861 14,898,160 Net Revenues Less Expenditures (1,720,584)925,860 153,870 760,179 153,870 Liability Insurance Revenues 2,087,755 1,950,908 1,810,690 786,261 1,810,690 Expenditures 2,180,680 2,733,726 2,017,600 935,265 2,017,600 Net Revenues Less Expenditures (92,925)(782,818)(206,910)(149,004)(206,910) Property Insurance Revenues 556,770 587,906 1,365,920 934,075 1,365,920 Expenditures 436,283 632,404 1,332,100 404,472 1,332,100 Net Revenues Less Expenditures 120,487 (44,498)33,820 529,603 33,820 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 2017 Actuals 2018 Actuals 2019 Budget 2019 Est. Actuals Other Fund Revenues Special Revenue Funds Enterprise Funds Internal Service Funds 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 General Fund Special Revenue Funds Enterprise Funds Internal Service Funds 2019 Estimated Fund Balances Beginning Balance Estimated Ending Balance 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000 2017 Actuals 2018 Actuals 2019 Budget 2019 Est. Actuals Other Fund Expenditures Special Revenue Funds Enterprise Funds Internal Service Funds Page 11 of 14 8.a Packet Pg. 66 At t a c h m e n t : A p r i l 2 0 1 9 M o n t h l y R e p o r t ( 1 8 1 0 : A p r i l F i n a n c i a l R e p o r t ) 2017 2018 2019 thru April thru April thru April Operating revenues and expenditures only; capital and non-capital projects are excluded. Street Fund Revenues 3,584,238 3,833,974 4,610,826 776,852 20.3% Expenditures 2,570,546 4,597,117 4,975,389 378,272 8.2% Net Revenues Less Expenditures 1,013,692 (763,143)(364,563) LEOFF 1 Retiree Benefits Revenues 338,549 231,614 82,605 (149,009)-64.3% Expenditures 375,671 448,034 470,664 22,631 5.1% Net Revenues Less Expenditures (37,122)(216,420)(388,060) Lodging Tax Revenues 70,953 71,369 74,449 3,080 4.3% Expenditures 52,679 128,203 52,346 (75,857)-59.2% Net Revenues Less Expenditures 18,275 (56,834)22,103 Youth/Teen Programs Revenues 364,656 353,220 335,616 (17,604)-5.0% Expenditures Net Revenues Less Expenditures 364,656 353,220 335,616 Capital Resources Revenues 3,927,253 5,493,519 4,466,859 (1,026,660)-18.7% Expenditures 0 1,754,508 1,940,784 186,276 Net Revenues Less Expenditures 3,927,253 3,739,011 2,526,075 Criminal Justice Revenues 1,613,449 1,559,804 1,778,475 218,671 14.0% Expenditures 1,248,504 1,433,478 2,230,976 797,498 55.6% Net Revenues Less Expenditures 364,945 126,326 (452,501) ShoWare Operating Revenues 108,389 244,714 123,819 (120,895)-49.4% Expenditures 156,620 165,880 156,025 (9,856)-5.9% Net Revenues Less Expenditures (48,231)78,834 (32,205) Admissions Tax revenues received quarterly (April, July, September, January) Other Operating Revenues 5,000 (5,000)-100.0% Expenditures 2,342 16,042 22,165 6,123 38.2% Net Revenues Less Expenditures (2,342)(11,042)(22,165) Combines several small programs, including City Art Program and Neighborhood Matching Grants April 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Year-to-Year Month Comparison 2019-18 Special Revenue Funds Variance Page 12 of 14 8.a Packet Pg. 67 At t a c h m e n t : A p r i l 2 0 1 9 M o n t h l y R e p o r t ( 1 8 1 0 : A p r i l F i n a n c i a l R e p o r t ) 2017 2018 2019 thru April thru April thru April Operating revenues and expenditures only; capital and non-capital projects are excluded. April 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Year-to-Year Month Comparison 2019-18 Variance Councilmanic Debt Service Revenues Expenditures 15,923 15,923 Net Revenues Less Expenditures (15,923) Debt service payments are generally due in June and December. Special Assessments Debt Service Revenues 154,414 78,096 69,312 (8,784)-11.2% Expenditures 543 736,788 180,072 (556,716)-75.6% Net Revenues Less Expenditures 153,871 (658,693)(110,760) Water Utility Revenues 7,329,782 7,767,276 8,681,989 914,713 11.8% Expenditures 4,382,249 4,583,859 4,868,620 284,761 6.2% Net Revenues Less Expenditures 2,947,534 3,183,417 3,813,369 Sewer Utility Revenues 10,600,038 10,600,038 Expenditures 9,548,603 9,548,603 Net Revenues Less Expenditures 1,051,435 Note: Sewer Utility was combined with Drainage Utility in 2017 & 2018. Drainage Utility Revenues 16,979,587 19,030,514 8,520,589 (10,509,926)-55.2% Expenditures 13,122,656 13,654,255 4,319,985 (9,334,270)-68.4% Net Revenues Less Expenditures 3,856,931 5,376,259 4,200,604 Solid Waste Utility Revenues 200,232 215,769 230,075 14,306 6.6% Expenditures 136,734 278,500 224,435 (54,065)-19.4% Net Revenues Less Expenditures 63,498 (62,731)5,640 Golf Complex Revenues 490,480 6,536,911 553,108 (5,983,804)-91.5% Expenditures 779,391 732,809 845,950 113,141 15.4% Net Revenues Less Expenditures (288,911)5,804,103 (292,842) 2017 revenues down due to inclement weather conditions in Q1. Fleet Services Revenues 1,620,411 1,630,134 3,507,122 1,876,988 115.1% Expenditures 1,138,412 1,656,616 2,755,391 1,098,776 66.3% Net Revenues Less Expenditures 481,999 (26,482)751,731 Central Services Revenues 108,312 128,461 107,819 (20,642)-16.1% Expenditures 81,915 143,467 81,662 (61,805)-43.1% Net Revenues Less Expenditures 26,396 (15,006)26,157 Debt Service Funds Enterprise Funds Internal Service Funds Page 13 of 14 8.a Packet Pg. 68 At t a c h m e n t : A p r i l 2 0 1 9 M o n t h l y R e p o r t ( 1 8 1 0 : A p r i l F i n a n c i a l R e p o r t ) 2017 2018 2019 thru April thru April thru April Operating revenues and expenditures only; capital and non-capital projects are excluded. April 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Year-to-Year Month Comparison 2019-18 Variance Information Technology Revenues 2,622,784 2,770,321 3,520,415 750,094 27.1% Expenditures 2,370,446 2,894,614 2,665,877 (228,737)-7.9% Net Revenues Less Expenditures 252,337 (124,293)854,539 Facilities Revenues 1,562,151 1,636,442 1,763,675 127,233 7.8% Expenditures 1,306,714 1,333,626 1,366,178 32,552 2.4% Net Revenues Less Expenditures 255,437 302,815 397,497 Unemployment Revenues 69,466 45,643 54,231 8,588 18.8% Expenditures 20,279 48,507 81,978 33,471 69.0% Net Revenues Less Expenditures 49,187 (2,864)(27,747) Workers Compensation Revenues 343,075 325,166 407,015 81,849 25.2% Expenditures 345,943 376,004 407,042 31,039 8.3% Net Revenues Less Expenditures (2,868)(50,837)(27) Employee Health & Wellness Revenues 3,645,397 3,809,343 4,943,039 1,133,696 29.8% Expenditures 4,429,376 4,671,318 4,182,861 (488,457)-10.5% Net Revenues Less Expenditures (783,979)(861,974)760,179 Liability Insurance Revenues 431,191 597,243 786,261 189,018 31.6% Expenditures 1,892,934 1,143,484 935,265 (208,219)-18.2% Net Revenues Less Expenditures (1,461,743)(546,241)(149,004) Property Insurance Revenues 186,644 191,515 934,075 742,559 387.7% Expenditures 217,064 217,838 404,472 186,634 85.7% Net Revenues Less Expenditures (30,420)(26,322)529,603 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 Special Revenue Funds Enterprise Funds Internal Service Funds Other Fund Revenues thru April 2017 2018 2019 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Special Revenue Funds Enterprise Funds Internal Service Funds Other Fund Expenditures thru April 2017 2018 2019 Page 14 of 14 8.a Packet Pg. 69 At t a c h m e n t : A p r i l 2 0 1 9 M o n t h l y R e p o r t ( 1 8 1 0 : A p r i l F i n a n c i a l R e p o r t ) OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: June 4, 2019 TO: Operations Committee SUBJECT: 1st Quarter 2019 Investment Report SUMMARY: Per City policy, once a quarter the Finance Director shall submit a report to the Operations Committee that summarizes the City’s investment portfolio. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services ATTACHMENTS: 1. Q1 2019 Investment Reports (PDF) 9 Packet Pg. 70 CITY OF KENT INVESTMENT PORTFOLIO March 31,2019 Market ValuePurchase Investment 16,551,825 75,t6O,7LOOvernight 9 Llt9 Ban WA State LGIP PFM 2.523o/o 2.5 1 75,L6O,7rO 11 Kent Portfolio r Cash r WA State LGIP r U,S. Treasuries r Supra National Bonds r Municipal Bonds r Gov't. Agencies ¡ Corporate Notes ¡ Commercial Paper ¡ Bank Notes PFM initiated 10 investment trades in the lst quarter of 2019. The PFM managed portfolio held 104 investments atO3/3L|2OL9. The City is currently carrying greater than adequate liquidity in cash and the LGIP. Portfolio allocations atO3/3L/2O19 were in compliance with the City's investment policy. Q1-2019 investment interest revenue: $1,203,561.48. YTD -2019 investment interest revenue: $1,203,561.48. 9.a Packet Pg. 71 At t a c h m e n t : Q 1 2 0 1 9 I n v e s t m e n t R e p o r t s ( 1 8 1 1 : 1 s t Q u a r t e r 2 0 1 9 I n v e s t m e n t R e p o r t ) CITY OF KENT CASH AND INVESTMENTS BY TYPE QUARTER ENDING BALANCES 2018 Q1-Q4 AND 2019 Qt 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 ,-----------o ---a-,- Totatc&l +LGIP '.,...,......P Otherlnvestments + Câsh ã-x ,-----------14'-- X a---' 3- lst Quarter 2018 2nd Quarter 2018 3rd Quarter 2018 4th Quarter 2018 1st Quarter 2019 9.a Packet Pg. 72 At t a c h m e n t : Q 1 2 0 1 9 I n v e s t m e n t R e p o r t s ( 1 8 1 1 : 1 s t Q u a r t e r 2 0 1 9 I n v e s t m e n t R e p o r t ) CASH AND INVESTMENTS MONTH ENDING BALANCES 2017t2018t2019 250,000,000 200,000,000 150,000,000 -æ19 -ã18 ------- m17 100,000,000 50,000,000 \o --o 4 ---(}-_.a.--a"'--a--'---û--.'--a-"-.J' å --.-'- ---+ ---r'-' F V o--- JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 9.a Packet Pg. 73 At t a c h m e n t : Q 1 2 0 1 9 I n v e s t m e n t R e p o r t s ( 1 8 1 1 : 1 s t Q u a r t e r 2 0 1 9 I n v e s t m e n t R e p o r t ) Quarterly Interest Earnings Ql, 2O1g - QLt 2lJ-tg 1,200,000 L,O77,Og3 L,O73,827 1,000,000 800,000 600,000 585,449 485,650 400,000 200,000 78,225 Q12018 Q2 2018 Q3 2018 Q4 2018 Q12019 t General Fund r Other Funds L¿9,t35I 4ra '-aL2t,O73I 9.a Packet Pg. 74 At t a c h m e n t : Q 1 2 0 1 9 I n v e s t m e n t R e p o r t s ( 1 8 1 1 : 1 s t Q u a r t e r 2 0 1 9 I n v e s t m e n t R e p o r t ) Total Cash and Investments By Fund March 3tt 2OLg 1 000 1 100 1200 1 300 1400 1500 1 600 1800 1 900 1950 2200 2500 3100 3200 3300 3400 3500 4100 4300 4400 4700 4800 5100 5200 5400 5600 5900 6200 6400 6500 6600 6700 6800 7100 General Fund Street Fund PS Retiree Healthcare Fund Lodging Tax Fund Youth/Teen Fund Capital Resources Fund Criminal Justice Fund Housing & Comm Dev Fund Other Operating Projects Fund Kent Events Center Operating Fund Non-Voted Debt Service Fund Spec Assess Debt Service Fund Street Capital Projects Fund Parks Capital Projects Fund Other Capital Projects Fund Technology Capital Projects Fund Facilities Capital Projects Fund Water Fund Sewer Fund Drainage Fund Solid Waste Fund Golf Fund Fleet Service Fund Central Services Fund Facilities Management Fund Insurance Fund Deferred Compensation Fund Firefighters Pension Fund Deferred Comp Fund Payroll Clearing Fund Subsystem Clearing Fund Utility Clearing Fund Agency Clearing Fund Special Events Center-PFD Total: 18,645,075 8,715,958 1,689,924 355,942 269,609 15,842,045 6,600,852 (133,742) 797,824 2,443,312 1,439,366 318,671 14,936,246 14,075,976 1,637,752 6,253,482 37,365 40,777,919 (2,242,399) 41,504,067 552,870 3,973,996 6,453,769 4,371,757 5,269,983 11,147,235 39,154 2,122,817 124,695 (17,922) 634,259 1,605,745 437 210 9.a Packet Pg. 75 At t a c h m e n t : Q 1 2 0 1 9 I n v e s t m e n t R e p o r t s ( 1 8 1 1 : 1 s t Q u a r t e r 2 0 1 9 I n v e s t m e n t R e p o r t ) pfrn CTTYOFKEñrT.. ..r .r_ 1,, U.S. Treasury Bond / Note Supra-National Agency Bond / Note Municipal Bond / Note Federal Agency Bond / Note Corporate Note Bank Note Managed Account Sub-Total Accrued Interest Total Portfolio Unsettled Trades 2.LZo/o 2.74o/o Portfolio Summaly and Statistics Par Value Market Value Percent 120,63+000.00 Lt9,æ2ß22.69 100.00o/o 606,813.71 120,634,000.00 L2O,4/'/9,436.4O 0.oo 0.00 23.43o/o 20.50o/o US TSY Bond / 53.53o/o Yield to Maturity at Cost Yield to Maturity at Market Duration to Worst Weighted Average Days to Maturity For the Month Ending March 31, 2019 Bank Note O.4lo/o Corporate Note 25.13o/o Fed Agy Bond / Note 16.75o/o Muni Bond / Note 0.38o/o Supra-Nat¡onal Bond / Note 4.4ïo/o 2.600/o 2.4Io/o 2.62 1003 64,945,000.00 5,285,000.00 455,000.00 19,489,000.00 29,965,000.00 495.000.00 64,L21,600.27 5,276,049.02 459,109.65 L9,347,377.88 30,106,612.31 49t,875.56 s3.53 4.40 0.38 16,15 25.13 0.41 27.8to/o T i [--* *t i-*- *l 0-6Months 6-12Months 1-zYears 2-3Years 3-4Years 4-syears Oversyears Account Summary Sector Allocation Maturity Distribution Characteristics PFM Âsset Management LLç Account 48820OO0 Page 2 9.a Packet Pg. 76 At t a c h m e n t : Q 1 2 0 1 9 I n v e s t m e n t R e p o r t s ( 1 8 1 1 : 1 s t Q u a r t e r 2 0 1 9 I n v e s t m e n t R e p o r t )