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010925 EAR Advisory Board Meeting Packet
ciiCl:FV�4444 i��eu Port, Townsend Equity, Access, and Rights Advisory Board Thursday, January 9, 2025 Continuance from Thursday, December 12, 2024 12:30 to 2:30 p.m. City Hall, 540 Water Street City Council Chambers and Virtually • Join virtually at I.;//ir0.,,.,„/„ll/ enter the Webinar ID 96510425594 • Join by phone in listen -only mode (253)205-0468 access code: 96510425594# • Submit public comment to be included in the meeting record to: I�.��.p.;// ulblliiccoirnirnent„tiillllout„com/ciit o� .t • If you are experiencing technical difficulties, please attempt all methods listed above before reporting any issues to:pirlku,ppoirt ciit ofpt,.us Call to Order/ Roll Call II. Approval of Agenda III. Advisory Board/Committee/Commission end of the year celebration. A quorum may be present, but no action will be taken. (15 Minutes) IV. Committee Member Updates V. Approval of Minutes: November 14, 2024 VI. Public Comment- (3 minute per person) VII. Scope of Work Sub-Commtitee Update Vill. Review Gallup Contract IX. Welcoming City Resolution X. Budget: City of Port Townsend and Equity, Access and Rights Advisory Board XI. Process Overview for Submitting Requests to: L City of Port Townsend ii. Equity, Access, and Rights Advisory Board XII. Public Comment on Agenda Items (3 minutes per person) Americans with Disabilities Act In compliance with the Americans with Disabilities Act, those requiring accommodation for this meeting should notify the Citv Clerk's Office at least 24 hours prior to the meeting at (360) 379- 5083. cifiFV�4444 i��eu Port, Townsend XIII. Staff Updates XIV. Set agenda for next meeting: February 13 at 12:30pm XV. Adjourn Action Items from 14-November-2024 • Add ADU blurb to Agenda template (AR) • Share City Budget when approved (AH/CS) • Share Gallup Contract - slated for 12-Dec-24 • Email to AH re: lighting requests/general process for requests for the city Americans with Disabilities Act In compliance with the Americans with Disabilities Act, those requiring accommodation for this meeting should notify the Citv Clerk's Office at least 24 hours prior to the meeting at (360) 379- 5083. cn LU Z Z W LU Q O m O cn H Z cn LU U Q LU co 7t C M C O L a) Q 2 U Z O H Q U O J Q N c'M N Lii 2 H O�G H N O N a) au > Z LW r 0 0 Q N N E m ry cu U •U LL m a) Q a) U) 00) L.I. 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How do we put ourselves out there more? Event? Workgroup? How do we effect change? How do we balance action with conversation? What role might Love's liberatory consciousness play for this group? How do we decide what & when? Headline goals, work plan? What do we want to be tasked with? How do we get around laws, policies, and structures that are barriers? How do we inspire more community involvement with EAR Advisory Board? Updated 120624 DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA November 10, 2023 Building a I ite of Engagement at Ciit irt Submitted to: Cynthia C Shaffer Director of People & Performance City of Port Townsend 250 Madison St. Suite 2 Port Townsend, WA, 98368 United States t3607741495 cshaffer@cityofpt.us Submitted by: Coleman Barnes Senior Business Solutions Consultant Gallup, Inc. 1001 Gallup Drive Omaha, NE 68102 United States t 402-938-6401 Coleman_Barnes@gallup.com DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA Scope of Services This Scope of Services (the "Services") is between Gallup, Inc. ("Gallup") and City of Port Townsend ("Client") entered into on 12/6/2023 ("Effective Date"). Modifications to the Services shall require a written Change Order. Such Change Order shall set forth in detail the changes, including, but not limited to, price and timeline adjustments required to modify the Services. Under no circumstances shall any Change Order be effective until executed by an authorized representative of each party. This Scope of Services together with the General Business Terms attached hereto, constitutes the entire agreement between Gallup and Client and supersedes all other oral and written representations, understandings or agreements related to these Services. Client Project Manager: Cynthia C Shaffer. Gallup shall be responsible for reporting to Client Project Manager. Gallup will not make any changes to the Scope of Services without the written approval of Client Project Manager. Written approval may be in the form of email, fax or written Change Order. Gallup Project Manager: Coleman Barnes. Client Project Manager shall make any request for changes to the Scope of Services to Gallup Project Manager. Gallup shall not be responsible for making any changes not directed to Gallup's Project Manager. Project Term The project term will run for 1 year from the date of contract execution. Gallup has relied on information provided by Client in defining the Services and determining the pricing for such Services. Gallup will rely on this information as being accurate and complete. Any discrepancy in the information provided by Client may change the Scope of Services and/or the pricing. Gallup will notify Client upon discovering a discrepancy in the information provided by Client and inform Client of the impact on the Scope of Services, timeline and pricing of the Services. DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA Project Deliverables by Gallup Products Impact of Engagement Leader Workshop (Virtual) During this two-hour workshop, leaders discuss their roles in and responsibilities of fostering a culture of engagement. This working session will equip leaders to: • recognize engagement's effect on individual, team and organizational performance. • understand and appreciate their roles and responsibilities as people who own and lead an engaging culture. • develop a strategy to increase their leadership team's engagement, and model those approaches to the larger organization. • identify specific actions they and their leadership team can take to enhance engagement. This is a two-hour, consultant -led workshop. Engagement Results Leader Session Leaders will work with a Gallup coach to understand their Q12 employee engagement survey results, interpret the survey data and focus on preparing for their State of the Team conversation. Coaching session(s) are valid for 12 months from the date of purchase. Creating an Engaging Workplace for Individual Contributors Webinar This one -hour webinar will introduce the entire organization to the concepts of engagement. Employee engagement is everyone's responsibility. When all employees help to create an engaging workplace, creativity, productivity and passion fuel key business results. Participants will gain a better understanding of what engagement is, the importance of engagement and the roles all employees play in creating an engaging workplace. The audience for this presentation for an all -company launch will include leaders, Engagement Champions, managers and individual contributors. But the facilitator can also aim the presentation more specifically at individual contributors who work independently or collaboratively in a technical or specialized capacity. With a solid understanding of engagement's role in an organization and an assessment of how the team and organization are doing, individuals and teams learn their roles in the engagement process and how they can take action to support engagement. Creating an Engaging Workplace for Managers - Half Day This program is geared toward managers and supervisors: those who manage or oversee a team's performance. The Creating an Engaging Workplace Course for Managers provides managers with insights and tools they can use to create an environment in which their team members thrive and engagement is high. During this course, participants will gain: • the empowerment necessary to take ownership of their team's engagement • an understanding of the factors that influence engagement and how to use the 12 elements of engagement as a lens to improve team culture and performance • specific actions managers and their team members can take to enhance the team's engagement • insights that will help managers lead individual and team conversations about interpreting their team's current state of engagement • Participants receive the physical Driving Employee Engagement Workbook and the Creating an Engaging Workplace Digital Manager Packet. By combining the workbook and digital resources with the education they acquire during this course, participants will have the information and resources they need to start managing with a focus on engagement. This is a half -day, instructor -led course. DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA Creating an Engaging Workplace for Engagement Champions - 1 Day A team of Champions may include HR team members, business partners, respected leaders or managers and/or individual contributors who demonstrate enthusiasm for creating an engaging work environment. Gallup consultants can offer guidance, tools and training to help you recruit, select and build a network of effective Engagement Champions. During the one -day Creating an Engaging Workplace Course for Engagement Champions, participants learn simple, conceptual engagement strategies and techniques. Champions will gain the confidence and knowledge and receive the materials necessary to support their role as engagement advisers. This course will introduce participants to five things Engagement Champions can do that strongly influence engagement and performance: • promote and advocate for workplace engagement. • guide leaders and managers through the engagement process over time • provide ongoing support to leaders and managers throughout the year. • provide engagement -focused consulting and coaching to leaders and managers. • educate leaders, managers and teams on the actions and behaviors that create engaged teams. This is a one -day, instructor -led course. Gallup Access Workplace Advisory For 100 employees. Bundled: Employee Experience Survey Functionality Includes the following features to support the Onboarding and Exit phases of the employee lifecycle: - Additional Gallup -validated questions around Onboarding and Exit insights - Ability to use custom questions - Closed -sample survey capability - Skip pattern functionality - Ongoing, near real-time data collection and reporting based on client set-up - Survey set-up, management, distribution of surveys, creating the reporting groups, creating the respondent list, and reading results managed 100% by client. - Unlimited ad hoc pulse survey capability - Additional survey project support, reporting or consulting can be purchased as needed Bundled: Leadership Results Briefing Session Virtual During the Leadership Results Briefing a Gallup consultant meets with the leadership team to discuss insights into the organization's Q12 engagement results. The consultant helps executive team members focus on the importance of their leadership roles in creating a culture of engagement and identify their organization's key performance goals and next steps. Bundled: Workplace Advisory Administration Includes all Advisory Touchpoints to support with the implementation and execution of a full employee engagement survey. Including: • Questionnaire, standard survey invite and reminder programming with quality checks • Respondent list checking cleaning and verification for accuracy • Administration of the survey field period (launch, reminder, closure) with participation monitoring and reporting • Configuration of roles for results rollout within the platform • Importing translations for non-standard questions • Regular connections with a Gallup expert Bundled: Single Sign On (Add -On) Single Sign On (SSO) allows a client's platform to authenticate users on the Gallup Access platform without requiring the individual to enter a username or password. Gallup supports SAML 2.0 SSO. SAML 2.0 is an XML-based protocol that uses security tokens containing assertions to pass information about an end user between an SAML Identity Provider and an SAML Service Provider. DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA Additional Available Deliverables The following outlines the costs and terms associated with specific optional / additional deliverables representing services not covered by the scope of work described above, which may be added to the original project scope at Client's request. Total contract value to not exceed $50,000. Optional I airnageir IDevelll lipment IDellliiveilral llle • 1 - Building Accountability for Engagement Managers - Half Day $9, 500.00 Session • 1— Manager Development Intensive $2, 500.00 • 1- Developing Performance: Five Conversations that Drive $9,500.00 Performance - Half Day Session DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA Ill llll qp Access Waiirlk,IIlalace Advilisairy The subscription for Client includes Gallup's web -based Workplace survey platform for up to the designated number of employees. This includes survey platform access with unlimited ad hoc pulse capability through the term of the contract. Platform Features • Unlimited employee surveys for one year. o Q1 @ survey questions o Onboarding and exit surveys o Additional Gallup -validated questions and indices on topics including, but not limited to: DEI, Wellbeing, Accountability, and Change Management. • Web only. • Field period determined by Client. • Reporting tools o Reporting provided based on Client set-up of variables. o Manager -level report viewing security. o Report exports (ability to export report to PDF, PowerPoint, and Excel). o Heat map (ability to compare results of multiple teams and variables). o Dynamic Recommendations (receive high- and low -ranking question recommendations). o Advanced Data Tool (ability to analyze and cut data by multiple variables in real time). o Text Analytics (ability to get sentiment and topic analysis of open-ended responses). ■ coding, synthesis, or analysis of open-ended survey items requires consulting support and can be purchased as needed. o Reporting Configuration (ability to customize reporting views for your organization). o Workplace Aggregated Data Export (ability to download a data file that contains all aggregated results for any given survey). • Unlimited manager access to learning and advice resources. • Inclusion of managers into monthly Gallup's Manager Minute newsletter. • Inclusion in collaborative activities intended to capture manager experience with platform. • Unlimited use of action planning and team monitoring tools. • Unlimited use of companion mobile app. • For organizations fewer than 5,000 employees: o Five System Administrator seats that include the following functionality: o Five Survey Creator seats (ability to create and administer surveys). o Five Advanced Data User seats (ability to manipulate survey data at the overall client level). * Additional System Administrator, Survey Creator, and Advanced Data User Seats can be purchased as needed upon consultation with your Gallup partner. • Unlimited standard system -level roles that include the following: o Project Administrator (ability to edit and manage survey projects). o Manager/Delegate (ability to view and manage team reports, action plans and learning). o Individual Contributor (ability to create tasks and access to learning resources). • Additional custom roles can be configured with Gallup implementation and consulting support. • Technical (Help Desk) Support. • English is the default language for survey questions and communications with the option to use other languages already programmed in Gallup Access. Gallup Access provides translations for multiple languages for standard survey text (Q12@ survey questions and communications, including invitation and reminder). DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA • Client will be responsible for survey translation of custom text areas. Custom text includes 1) survey title, 2) survey introduction text, 3) customized survey invitation, 4) customized survey reminder, 5) custom survey questions (not Gallup -validated questions and indices), and 6) reporting groups. • Gallup Access provides machine -automated translations into English for languages identified and available through Amazon Web Services. This is available as part of the Text Analytics tool, included in data visualizations and exports. Raw responses are shown exactly as written in all standard reporting. • Single sign -on capabilities. • Employee Experience Survey Functionality for the Onboarding and Exit phases of the employee lifecycle: o Additional Gallup -validated questions around Onboarding and Exit topics s o Ability to use custom questions o Closed and Open sample survey capabilities o Skip pattern functionality o Ongoing, near real-time data collection and reporting based on client set-up ■ Reporting Time Types included Year, Quarter, Month, Week. 0 1-hour employee onboarding & exit survey training. Beyond this training, survey set-up, management, distribution of surveys, creating the reporting groups, creating the respondent list, and reading results managed 100% by client. Additional survey administration implementation support is available for an additional charge. • Gallup Access onboarding and exit surveys provide an easy way for you to receive valuable feedback on a continuous basis. They have no set end date, allowing you to view results and address feedback immediately. Also, exit surveys provide respondent -level data without requiring a minimum number of respondents (i.e., minimum N size), so you can always view exact responses. Onboarding surveys require a minimum N size of four (4). Advisory Touchpoints • A kick-off call in the first year of implementation and project timeline using the client's desired field date or reporting date as the central point of reference to launch the program with milestones to track progress. • An annual reflection and planning call in subsequent years to assess areas of strength and areas of opportunity from prior administrations and determine action plans for upcoming administrations. • Development of a best -practice communication strategy to determine target audiences and assist with messaging, sharing Gallup's communication guide and pre -/post -survey examples. • Regular connections with a Gallup expert to: o Advise on questionnaire design and variable inclusion using Gallup -validated questions and indices for maximized analytics. o Stay up to date on the latest features. o Integrate workplace insights. o Empower managers. o Develop ongoing pulse strategies. Implementation support from a Gallup expert for executing one annual survey process, including: o Questionnaire, standard invite and reminder programming with quality checks. o Respondent list checking, cleaning, and verification for accuracy. o Administration of the survey field period (launch, reminder, closure) with participation monitoring and reporting. o Configuration of roles for results rollout within the platform. o Importing translations for non-standard questions. DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA Additional survey administration implementation support — beyond the one annual survey process included — available for an additional charge. Manager Training Webinar, which can be recorded, for up to 100 helping managers understand their personalized team insights and use Gallup Access action planning and resources to facilitate meaningful conversations. Leadership Results Briefing (90-minutes for up to 15 leaders) led by a Gallup expert to guide senior leadership team through a review of results, reinforce their role in driving engagement and discuss key insights, goals and next steps to support the organization's holistic engagement strategy. Optional Add-Ons • Additional leadership results briefing webinars available for an additional charge. • Additional manager training webinars available for an additional charge. • Additional survey administration implementation support — beyond the one annual survey process included — available for an additional charge. DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA Investment Summary Products Final Price Phase 1: Align & Develop • 1 — Impact of Engagement Leader Workshop — ON -SITE with $4,500.00 Creating an Engaging Workplace for Managers (same -day) • 1 — Creating an Engaging Workplace for Managers - Half Day - ON- $9,500.00 SITE with Impact of Engagement Leader Workshop (same -day) • 1 — Creating an Engaging Workplace for Individual Contributors $2,500.00 Webinar Phase 2: Assess • 100 — Gallup Access Workplace Advisory $14,000.00 • 100 — Employee Experience Survey Functionality • 1 — Bundled: Workplace Advisory Administration • 1 — Bundled: Single Sign On Phase 3: Equip & Act • 1 — Bundled: Leadership Results Briefing Session Virtual • 1 — Bundled: Manager Training Webinar • 10 — Engagement Results Leader Session $5,950.00 Phase 4: Embed & Sustain • 1 — Creating an Engaging Workplace for Engagement Champions - $13,000.00 1 Day — On -Site or Virtual Sub -Total: $49,450.00 TOTAL: $49,450.00 All prices are expressed in USD. Total contract value to not exceed $50,000. Project Billing Schedule $49,450.00 will be invoiced upon receipt of the signed Agreement. Additional Clauses Gallup Access Subscriptions: The Service Fee for the Gallup Access Platform is based on a pre -paid annual subscription and no refunds will be given for cancellations of partial years. DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA Gallup monitors unique and individual email addresses of employees. As such, there will be a pro -rated charge per employee should the sample size exceed the contracted number of employees for the organization. Courses Any on -site courses, virtual courses, or open enrollment course seats being purchased must be used within 12-months of the purchase date. Any course purchased must be attended and/or held in the country the purchase was made in. Any modification to this will require the mutual agreement of the parties and may impact the pricing of the course. In Person Course minimum enrollment is 15 and maximum is 30. Virtual and Blended Course along with Webinar Series minimum is 10 and maximum is 24. Webinar minimum enrollment is 10 and maximum is 50. Leader Session and Workshops minimum enrollment is 1 and maximum is 15. Open Enrollment course registration must be completed at least 2-weeks in advance of the course start date. Open Enrollment course seats may not be used for courses that have sold out prior to attempted registration. Your course seat is not guaranteed until full payment is received. On -Site and Online Blended courses must be scheduled a minimum of 4 weeks in advance. In the event of course postponement/cancellation a fee for resources committed will applicable. 8-14 calendar days prior to scheduled course will be charged 50% of course fee; 7 calendar days or fewer will be charged 75% of course fee and non-refundable travel will be invoiced. Course participant list for On -Site courses must be finalized and submitted at least 2-weeks in advance of the course start date. Any post -session coaching calls must be scheduled within twelve weeks of the course completion. Each coaching call may be rescheduled one time with 48 hours advance notice. Any calls that have not been completed within the twelve - week timeline will be considered completed. Any late cancellations or no shows of coaching calls will be considered completed. Client may use Content on the Course website and from the Course Kits for personal or organizational purposes after successfully completing the course. Client may not copy or republish Content from the website or Course Kit materials, except for those items specifically designated to be copied. Documents that can be copied and distributed are identified with the following text in the footer of the document: "This document may be copied or reproduced for individual use. It cannot be altered or modified without the written permission of Gallup." In the event of any permitted copying, redistribution or publication of copyrighted material, no changes in or deletion of author attribution, trademark legend or copyright notice shall be made. Any pre -work included with the course seat code, including a CliftonStrengths assessment, is redeemable only for the purpose of attending the contracted course and is not transferrable for purposes outside of the contracted course. Coaching Calls Coaching calls must be scheduled within the mutually agreed upon timeline established during the kickoff meeting. Each coaching call may be rescheduled one time with 48 hours advance notice. Any late cancellations or no shows of coaching calls will be considered completed. Any calls that have not been completed within the agreed upon timeline will be considered complete. The contract will not be extended beyond the term for unused estimated coaching calls without the mutual agreement of the parties. All calls in a series must be completed within 12 months. The full series will be invoiced the month of the first call and no refunds will be given for calls in the series not completed. Q12 Purchases: You may not copy or republish Content from the website or Engagement Coaching Kit materials, except for those items included on the Engagement Coaching Kit portable media device (DVD or USB flash drive). In the event of any permitted copying, redistribution or publication of copyrighted material, no changes in or deletion of author attribution, trademark legend or copyright notice shall be made. Publication of Data: Research data associated with the consulting services performed by Gallup is not for public dissemination outside of Client's organization including but not limited to press releases and paid advertising. Both Client and Gallup have a responsibility to ensure that any published research findings are not misleading. Client shall consult with Gallup prior to DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA sharing any research findings with any third party. Any release approved by Gallup shall include sufficient technical information necessary to assess the validity of the published findings which may include the following: the exact question wording, dates of interview, interviewing method, sample size, definition of the survey population, and size of sampling error. Respondent Confidentiality: Respondent -identifying information, without the express consent of respondents, is not part of the deliverables under this Scope of Services and does not constitute a "work made for hire". Gallup will not provide respondent level data with any demographic data appended to protect the confidentiality of participating respondents. To avoid non-compliance with local privacy laws, Gallup will not provide Client any taped surveys without informing the respondent and obtaining express consent that the recordings will be shared with Client. Gallup, Inc. on behalf of itself and its affiliates and subsidiaries. BY: EDocuSigned by: Vats US (hv,v,S CA913504E548486... Name: Francis coggi ns City of Port Townsend on behalf of itself and its subsidiaries and/or affiliates cuSigned by: BY: EDo-9AAAHD14049E ... Name: 7ohn Mauro Date: 12/19/2023 Date: 12/28/2023 DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA FA" , 4s, a o U-4, 'M 1. PAYMENT OF INVOICES. 1.1 Client shall pay Gallup the fees specified in the Scope of Services in accordance with the payment schedule. 1.2 Client shall further pay all pre -approved expenses including reasonable out -of pocket expenses of Gallup's personnel associated with client -approved postage, freight, respondent incentives, and travel (including transportation, lodging and meals). 1.3 Payment shall be due upon receipt of the invoice. If Client objects to all or any portion of any invoice, Client shall notify Gallup of its objection within fifteen (15) days from the date of Client's receipt of the invoice, give reasons for the objection, and pay only that portion of the invoice not in dispute. Balances not in dispute and unpaid in excess of 30 days shall bear interest at a rate of 8% per annum. In the event that Client is delinquent in payment of any undisputed invoice beyond 45 days, Gallup may, at its option, withhold deliverables or suspend any and all services until the account is made current. 1.4 Client shall be responsible for all Sales, Use, VAT or similar taxes imposed on the services. 2. CONFIDENTIALITY. 2.1 Each party has made and will continue to make available to the other party information that is not generally known to the public and at the time of disclosure is identified as, or would reasonably be understood by the receiving party to be, proprietary or confidential ("Confidential Information"). Confidential Information may be disclosed in oral, written, visual, electronic or other form. Confidential Information shall include all business plans, strategies, forecasts, projects, analyses, financial information, business processes, methods and models, all organizational information, system architecture, software, graphics, computer programs, design ideas, concepts, flow charts, diagrams, progress reports, methods research and any other personal or intellectual property relating to either party, its respective parent or subsidiaries and Personal Data. "Personal Data" shall mean any information related to any identified or identifiable natural or legal person, such as Client's employees, customers, partners or any other third party (including such third parties' employees) and any other additional data deemed as personal data under the applicable personal data protection laws, which are made available to Gallup for processing them on behalf of Client pursuant to this Agreement and all Statements of Work issued pursuant to said Agreement. Confidential Information as defined herein shall not include: (a) information in the public domain at the time of its communication; (b) information, which enters the public domain, through no fault of the receiving party, subsequent to the time of its communication to the receiving party; (c) information which is obtained in good faith by either party from a third party, provided such third party is not bound by a confidentiality agreement with Gallup or Client, as applicable; or (d) information independently developed by employees or agents of a party without access to the Confidential Information of the other party. 2.2 The receiving party shall, except as otherwise provided below (i) not use or reproduce the Confidential Information for any purpose other than as required to perform in connection with the applicable Scope of Services; (ii) protect the confidentiality of the Confidential Information with the same degree of care as receiving party uses for its own similar information, but in no event less than reasonable care; or (iii) not disclose the Confidential Information to any third party, without the prior written approval of the disclosing party. Notwithstanding the foregoing, the receiving party may disclose Confidential Information to the extent such information is required to be disclosed by law, including a subpoena, or to respond to a regulatory request 12 of 16 DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA 2.3 Neither party shall disclose any terms or conditions of this Agreement without the prior written consent of the other party, except as required by applicable law; provided however, that either party may disclose the terms or conditions of this Agreement to a third party under an obligation of confidentiality to such party in connection with customary financial reporting, a proposed sale, merger, acquisition, change in control, consolidation, or other similar transaction. 2.4 Upon termination or expiration of this Agreement, Confidential Information shall be returned to the disclosing party or destroyed. Electronic copies of or containing Confidential Information that are automatically generated through data backup and/or archiving systems and which are not readily accessible to the receiving party's business personnel shall not be deemed to violate this Agreement, so long as such electronic copies are not disclosed or used in violation of this Agreement. Notwithstanding the foregoing, nothing in this Agreement shall prohibit the receiving party's legal department or counsel from retaining one (1) copy, including any electronic copy, of any of the Confidential Information as necessary to comply with regulatory recordkeeping requirements applicable to disclosing party. 2.5 Gallup agrees to the following as it relates to Personal Data: 2.5.1 To prevent unauthorized use, dissemination or publication of the Personal Data, and implement any technical and organizational measures to protect Personal Data which are required by the applicable law. 2.5.2 To implement appropriate technical and organizational measures to protect Personal Data against (i) accidental or unlawful destruction or loss, (ii) unauthorized disclosure or access, in particular where processing involves the transmission of Personal Data over a network, (iii) alteration, and (iv) all other unlawful forms of processing. 2.5.3 To inform Client promptly in writing if it becomes aware of any unauthorized use or disclosure of Personal Data by itself or others. 2.5.4 When collecting, using, storing, transferring and otherwise processing Personal Data, Gallup shall adhere to all applicable export and personal data laws, regulations and rules. 2.6 Client agrees to the following as it relates to Personal Data which is made available to Gallup pursuant to this Agreement and all Statements of Work issued pursuant to said Agreement: 2.6.1 To ensure that such Personal Data is collected and processed by Client and transferred to Gallup in accordance with applicable Data Protection laws, regulations and rules. 2.6.2 Prior to the transfer of such Personal Data to Gallup, to inform the respective data subjects of the processing of their Personal Data pursuant to this Agreement and their rights in accordance with applicable Data Protection laws, regulations and rules. 3. REPRESENTATIONS AND WARRANTIES. 3.1 The parties represent and warrant that: (a) each has the full power and authority to enter into this Agreement; (b) this Agreement is duly authorized by all necessary action and has been duly executed and delivered; and (c) neither party has entered into any agreement with any other entity that contains restrictive provisions regarding confidentiality and/or non -competition that may impair their ability to perform their specific obligations under the terms of this Agreement. 3.2 Gallup represents and warrants that it or its personnel will perform the Services: (a) in a good, timely, efficient, professional and workmanlike manner; (b) with at least the same degree of accuracy, quality, efficiency, completeness, timeliness and responsiveness as are equal to the accepted industry standards applicable to the performance of the same or similar services; and (c) using personnel who are fully familiar with the technology processes, procedures and equipment to be used to deliver the Services. 13 of 16 DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA 3.3 Gallup is the lawful owner or licensee of all programs and materials used by it in the performance of the Services contemplated hereunder that have not been provided by Client; such programs and materials have been lawfully developed or acquired by Gallup and Gallup has the right to permit Client access to or use of such programs and materials. Gallup represents and warrants that none of the Services or deliverables provided under this Agreement will infringe on any patent, copyright, trademark, trade secret or other intellectual property right of any third party and agrees to defend and to indemnify and hold harmless Client, its parent, subsidiaries, affiliates, employees and representatives, for all costs and expenses associated with the defense or settlement of any claim that the Services infringe a patent, copyright, trademark, trade secret or other intellectual property right and shall pay any judgments or settlements based thereon. 3.4 In connection with the performance of services set forth in an applicable Scope of Services, Gallup shall comply, and shall cause Gallup's employees and consultants/subcontractors to comply, with all statutes, regulations, ordinances, judgments, permits and other governmental rules or restrictions, whether domestic or foreign, applicable to Gallup's execution of this Agreement. 3.5 EXCEPT AS SET FORTH IN THIS AGREEMENT OR IN ANY SCOPE OF SERVICES, NEITHER PARTY MAKES ANY OTHER REPRESENTATIONS AND WARRANTIES, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 4. TERM AND TERMINATION. 4.1 This Agreement will commence on the Effective Date and will remain in effect until terminated in accordance with the terms and conditions set forth herein. 4.2 Either party may terminate this Scope of Services if the other party breaches any material obligation set forth herein or in the Scope of Services, which breach is incapable of cure or which, being capable of cure, has not been cured within thirty (30) days after receipt of written notice of such breach from the non - breaching party, or within such additional cure period as the non -breaching party may authorize in writing. 4.3 Either party may immediately terminate this Agreement or the Scope of Services by written notice to the other party if the other party becomes insolvent, makes a general assignment for the benefit of creditors, files a voluntary petition of bankruptcy, suffers or permits the appointment of a receiver for the its business or assets, or becomes subject to any proceeding under any bankruptcy or insolvency law, whether domestic or foreign, or has wound up or liquidated, voluntarily or otherwise. If any of the above events occurs, the affected party shall promptly notify the other party of its occurrence. 4.4 Client or Gallup may terminate this Agreement or any applicable Scope of Services without cause upon 60 days written notice. Notwithstanding any other terms and conditions of this Agreement, should Client cancel this Agreement without cause prior to completion of services, Gallup shall be entitled to the payment of fees for services completed prior to termination of this Agreement and 25% of the remaining balance of fees associated with contracted work yet to be performed. For example, if the contract is for a period of three years and Client terminates this agreement after Year 1, Client shall owe 25% of the remaining contract price for Years 2 and 3 in addition to any outstanding invoices for work completed prior to termination. 5. INTELLECTUAL PROPERTY RIGHTS. 5.1 Gallup Intellectual Property means any instructional materials, software programs, diagrams, copyrighted assessments or surveys and anything else that Gallup uses or distributes to Client in connection with this Agreement or an applicable Scope of Services that has been developed prior to or independent of this Agreement by Gallup ("Gallup Property"). Gallup Property is not considered work product or a "work for hire" under the terms of this Agreement. 14 of 16 DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA 5.2 For any Gallup Property used, incorporated into, required for use of, or provided with any Services provided to Client hereunder, Gallup hereby grants Client a worldwide, non-exclusive, nontransferable license to use Gallup Property as incorporated into or provided with the applicable Services within Client's organization. Client may not make, have made, sell, offer for sale, execute, reproduce, display, perform, distribute externally to any third party copies of, or prepare derivative works of Gallup Property without the written permission of Gallup. 5.3 All products, reports, documents, compilations of data and other materials produced or developed by Gallup under a Scope of Services which are either: (a) created using the funds, expertise, facilities, personnel, time, material or proprietary information of Client; or (b) are derivatives of any Client proprietary information shall be the sole property of Client. These materials do not include any Gallup Property or derivatives thereof. Gallup agrees to assist Client, or its designee, at Client's expense, in every proper way to secure Client's rights in the materials. 6. GOVERNING LAW; DISPUTE RESOLUTION. 6.1 This Agreement shall be construed and interpreted according to the laws of the State of Nebraska without regard to the conflicts of law principles in Nebraska. 6.2 In the event of any dispute, claim, question, or disagreement arising from or relating to this Agreement or the breach thereof, the parties hereto shall use their best efforts to settle the dispute, claim, question, or disagreement. To this effect, the parties shall consult and negotiate with each other in good faith and, recognizing their mutual interests, attempt to reach a just and equitable solution satisfactory to both parties. 7. RELATIONSHIP OF PARTIES. 7.1 Gallup will act solely as an independent contractor rendering professional services. 7.2 Gallup will function as a non-exclusive consultant to Client. Client acknowledges that, during the term of this Agreement and thereafter, Gallup will offer, undertake, and continue to provide Consulting Services for organizations other than Client. In no event shall Gallup be relieved of its obligation to protect Confidential Information. 8. NOTICES. Any notice or other communication required or permitted to be made or given by either party pursuant to this Agreement shall be in writing delivered to the individual whose name appears on the signature block of the Scope of Services. 9. LIMITATION OF DAMAGES. Neither party shall be liable to the other party for any indirect, incidental, consequential, exemplary, punitive or special damages, including lost profits, regardless of the form of the action or theory of recovery, even if that party has been advised of the possibility of those damages. 10. USE OF NAME, TRADEMARKS OR LOGOS. Neither party shall originate any publicity, news release, or other announcement, written or oral, whether to the public press, the trade, any of the other party's customers, suppliers or otherwise, relating to this Agreement or any Scope of Services, or to the existence of an arrangement between the parties without the prior written approval of the other party. Without limiting the foregoing, neither party shall use any names, trademarks or logos of the other party without the prior written consent of such party. 15 of 16 DocuSign Envelope ID: 2B390274-BE58-4056-9C9E-COE315D4A7DA 11. SEVERABILITY. The provisions of this Agreement shall be deemed severable, and the unenforceability of any one or more provisions shall not affect the enforceability of any other provisions. In addition, if any provision of this Agreement, for any reason, is declared to be unenforceable, the parties shall substitute an enforceable provision that, to the maximum extent possible and in accordance with applicable law, preserves the original intentions and economic positions of the parties. 12. CONFLICT OF TERMS. If a term in a Scope of Services or Addendum conflicts with a term in this Agreement, the provisions of this Agreement will prevail unless the Scope of Services or Addendum specifically states that the conflicting term will prevail. 13. WAIVER. No failure or delay by either party in exercising any right, power or remedy shall operate as a waiver of such right, power or remedy, and no waiver shall be effective unless it is in writing and signed by the waiving party. If either party waives any right, power or remedy, such waiver shall not waive any successive or other right, power or remedy the party may have under this Agreement. 14. ASSIGNMENT. Neither party may assign any rights in nor delegate any obligations under this Agreement or any portion thereof without the written consent of the other. Any such attempt to transfer will be deemed null and void. 15. FORCE MAJEURE. Neither party shall be liable for any losses arising out of the delay or interruption of its performance of its obligations under this Agreement due to any act of God, war, terrorism, civil disturbance, court order or natural disaster, or any other cause beyond the reasonable control of the affected party. 16. SURVIVAL. Sections 2, 3, and 5 shall survive the termination or expiration of this Agreement. Test 16 of 16 Resolution 17-014 Page 1 of 4 RESOLUTION NO. 17-014 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, AFFIRMING THAT THE CITY IS A WELCOMING CITY THAT PROMOTES POLICIES THAT FOSTER INCLUSION FOR ALL, REAFFIRMING THE CITY'S COMMITMENT TO SERVE ALL RESIDENTS AND VISITORS, AND CLARIFYING THE CITY COUNCIL'S POLICY RELATED TO NON- DISCRIMINATION IN THE PROVISION OF CITY SERVICES WHEREAS, the government of the City of Port Townsend is committed to supporting the Constitution of the United States and of the State of Washington and, where it is within the City's power, to protecting the constitutional rights of its residents and visitors; and WHEREAS, the City Council has repeatedly demonstrated its commitment to human and civil rights, most recently enacting Resolution 16-054 on December 5, 2016, reaffirming its commitment to Human and Civil Rights and recommitting to its policy that City staff will continue to serve all residents; and, WHEREAS, Port Townsend strives to be a vibrant city and community that welcomes and serves residents and visitors regardless of age, citizenship status, color, familial status, gender identity, gender expression, marital status, national origin, physical and intellectual abilities, race, religion, religious observance, sex, sexual orientation, military service status, and source or level of income; and, WHEREAS, Washington State welcomes thousands of refugees each year and the City is proud of our state's commitment to human rights and human dignity; and, WHEREAS, the recent increase in anti -immigrant and anti -refugee rhetoric and racist hate speech toward immigrant and refugee communities is alarming; and, WHEREAS, a study published by the Center for American Progress concluded that "communities are safer when law enforcement agencies do not become entangled in federal immigration enforcement efforts," and that "35.5 fewer crimes are committed per 1,000 people," and that when those communities "protect all their residents, they see significant economic gains I; and, WHEREAS, the City is committed to continue building a welcoming, safe, and hate -free community where all immigrants and refugees are welcomed, accepted, and integrated; and to encourage business leaders, civic groups, community institutions, and residents to join in a community -wide effort to adopt policies and practices that promote integration, inclusion, and equity; and, l ''rtre. i,f r-cct..,, rr,[ s nrarr9:ua Y y Po 1 ic i e„s on Cy- and t he Economy By Porn K, Wong on .T.o, uary 2,, 2O1. , 1_:00 am, Prt°;PR.//m,rW.safvtRariraKaro(,a.s 5Mrr Ifa,;y+f.r(,� s2imrrctra,at„L€rr7/re Prar`s/2C1//ii7_/l6/2c37"3C.f;/'Lk7c= etfr-sr,l.7 ar[ �a+aa.�t�Tr y- potLr,i_ae t cin- -r m :inr9 Ih(� nc.,onnrny Ia..Fit, vi.e'wed March '7p 2011 at: 41 1_0 1,,) in. Resolution 17-014 Page 2 of 4 WHEREAS, The City has a long history of being a port of entry for immigrants and refugees seeking a better life and fleeing discrimination, violence, and strife; and, WHEREAS, the City is committed to recognizing the dignity and human rights of all its residents and visitors, including the right of all residents and visitors to be in a City where they are not subject to prejudicial treatment or discrimination; and, WHEREAS, the City recommits to its policy to continue building a city of inclusion and participation by all; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend as follows: The City Council reaffirms its commitment to human and civil rights and equality for all of its residents and visitors, regardless of age, citizenship status, color, familial status, gender identity, gender expression, marital status, national origin, physical and intellectual abilities, race, religion, religious observance, sex, sexual orientation, military service status, and source or level of income. Within available resources, City staff will take the following actions. A. The Port Townsend Police Department (P"I'PD) will not detain or arrest a person based on their immigration or citizenship status unless pursuant to a federal criminal warrant issued by a federal judge or magistrate. Consistent with Port Townsend Resolution 09- 025, PTPD Policy Manual Section 409.7, and PTPD Policy Manual Section 412, the Police Department will not comply with, or assist in the execution of, administrative warrants issued by the Immigration and Customs Enforcement (ICE) or Customs and Border Protection (CBP) agencies of the Department of Homeland Security regardless of whether they are specifically delivered to the Police Department or entered into the National Crime Information Database. B. The City requests that the Jefferson County Sheriff's Office adopt written policies and procedures consistent with Section A above. The City further requests that the Jefferson County Sheriff's Office adopt a policy that it will not provide ICE or CBP agents with information regarding release dates of individuals detained in the Jefferson County jail, that informs all detainees of their right to refuse interviews with ICE and CBP agents, and honors this right for detainees who decline such interviews. C. The Port Townsend Police Department is focused on the safety and security of all our residents and visitors regardless of immigration status. The City will not enter into any agreement with the federal government that would allow or require employees, including the Police Department, to act as de facto immigration officers pursuant to 8 U.S.C. § 1101, Sec. 287(g) or to enforce any civil provisions of the Immigration and Naturalization Act. D. Because the City wants to encourage witnesses and victims of crime to report and assist in solving crimes, it will focus its limited law enforcement resources on criminal investigations rather than civil immigration law violations. Except as required by law, Resolution 17-014 Page 3 of 4 City employees, including employees of the Police Department, will not request information pertaining to immigration status or any protected class from any person seeking City services, or seeking to use City facilities, or during any other interaction with the City. No employee of the City will make any record of any person's immigration or any other protected class status except as expressly required by federal law. City Departments will review their procedures to ensure that they only collect information that is necessary to perform City functions or to provide services, and that this information is not used for any other purpose unless required by law. E. The City supports comprehensive federal immigration reform that creates a pathway to citizenship for undocumented persons, including students who arrived in the U.S. as children under the Development, Relief, and Education for Alien Minors ("DREAM") Act. F. City staff will continue to not tolerate harassment or intimidation of users of its facilities or services by other users or by City staff. Where appropriate, staff will refer such matters to the Police Department for investigation. The Police Department shall work with the community to ensure that City residents and visitors are protected under state and local malicious harassment laws and understand these protections. It shall proactively identify persons and groups who are likely targets for hate crimes to help them form prevention and response networks. It shall provide victim assistance where possible. It will investigate and refer hate crimes for prosecution to the City or County prosecutor where appropriate or will assist the victim in reporting the incident to the State Human Rights Commission. (City Personnel Policies 2.2 (Equal Opportunity); 2.5 (Anti -Harassment); Port Townsend Police Department Policy Manual Section 318, (Training, prevention, investigation, and reporting of hate crimes)). G. City staff will continue to assist residents and visitors who believe they have been discriminated against in the sale, rental, or financing of land to be used for housing in reporting instances of violations of state and federal laws related to housing to the Washington Human Rights Commission, U.S. Department of Housing and Urban Development, or other appropriate agency. (Resolutions 94-111A and 08-044). When considering entering into or renewing interlocal or mutual aid agreements, City staff will request that the agreement contain language consistent with this Resolution. H. When appropriate, City staff will revise City documents and websites that refer to "citizens" to instead refer to "residents". Resolution 17-014 Page 4 of 4 I. The City Manager will ensure City staff are trained on these policies. ADOPTED by the City Council of the City of Port Townsend at a special meeting thereof, held this 27th day of March, 2017. Attest: ... ........................................ Joanna Sanders, CMC City Clerk . . .......... Deborah S Mayor Arnett as to form: Steven L. Gross City Attorney r� 4 NIL tyo i M E'L 16L J'401103.'1711:1111 2025 ADOPTED BUDGET TABLE OF CONTENTS Adopted December 2, 2024 SECTION PAGE 2025 City Manager Budget Message 1 2025 Fund Summaries 21 Staffing & Compensation Summary 60 Debt Capacity and Graphs 68 CIP Summary and Project Pages 70 2025 Strategic Workplan 129 Port Townsend Financial Policies 135 Port Townsend Purchasing Policy 158 Council, Committees & Advisory Boards 217 2025 City Manager Proposed Budget G41 iM u4 oot�. rt ty0f PO pia«����Qu nvlTownsend CITY OF PORT TOWNSEND VISION A thriving community for all... CITY OF PORT TOWNSEND MISSION STATEMENT Champion aspirations for a thriving community as envisioned in our Comprehensive Plan THE 2025 CITY MANAGER BUDGET Message from the City Manager: Over the past few years, in preparing the budget for City Council consideration, the City team has transitioned away from the fear and uncertainty of the pandemic, the myopia of simply thinking about the next year ahead, and the somewhat stale, hold -over approach of "this is always how we've done it." If you take the time to review the previous years' budgets — or even just the budget messages from me — you'll see them evolve into something increasingly clear-eyed, strategic, and honest. This year we attempt to keep moving forward in a similar fashion, with a balanced, smart, and forward -thinking budget that reflects our community's values and sets us up for enduring success. Certainly, the team and I continue to be challenged by macroeconomic conditions beyond our control, like escalating costs of materials and labor, or local and regional conditions like seemingly impossible housing affordability. Add to that the discomfort of new or changing state and federal requirements or the accounting realities of keeping funds balanced and appropriately separated, and we're already showing up to this budget race a bit on the back foot. Despite that, we're always up for a challenge and keep a persistent focus on the future of our community. Over time, we believe that, by making tough decisions and sticking together, we can make things fairer and better for everyone. 2025 City Manager Proposed Budget To those ends, we have worked for at least half a year to prepare this budget. It started at a strategic workplan retreat in July with City Council and Department Directors when we honed in on our priorities with an appropriate mix of ambition and reality. Much of that retreat focused on how to balance both the year -on -year operational needs with the longer -term, integrated strategic thinking of the Financial Sustainability Initiative. That initiative grounds us in multi -year approach to fiscal responsibility that's game -changing — so it's perhaps no surprise it won a national award. We then asked each department to provide their list of budget requests that would get those priorities done and worked together to consider "key moves" to continue our multi- year financial sustainability journey. All of this was balanced against 2025 revenue predictions and our policies that require all funds to stay in the black. Many of those items show up in this year's budget. A few examples: • Smart seed funding for facilities repair and replacement. In the 2024 budget, we recognized that we do not plan well for facilities replacement and repair, often scrambling to find money after things inevitably break. We set aside funding to seed a repair/replacement fund to better anticipate and respond to facilities needs. This budget is the second year (of five) for investment into that fund. • Smart seed funding for fleets repair and replacement. The facilities seed funding approach is working, so we are proposing a similar approach for fleets in this year's budget. Similarly, doing so puts fleet repair and replacement on a predictable schedule which means better predictability and financial stability. • Smarter investments. The City takes in and pays out funds every day, but per policy and common sense, we need to ensure that the balance stays positive. Better financial planning means we put our balance to work earning interest, taking advantage of high interest rates and phasing the investments so we still have access to funds in case of unforeseen circumstances. • Fighting off our debt. Debt is an inevitable reality for almost all cities as it helps spread longer -term investments more equitably to those who benefit. Too much debt, however, hinders our abilities to get more accomplished and the City and our community have suffered from the City overleveraging debt. Last year we paid off some debt early, but some of those payments return in 2026. This year's budget gets a jump on those 2026 payments by setting funding aside so we don't overextend this year. We will also, as per above, invest those funds this year while they sit in waiting for next year. • Rainy -day fund. This fund strengthens our approach to preparing for unanticipated downturns and natural disasters to ensure stability of staffing and services. Putting aside one-time revenue like sales tax from major projects seeds the fund and will provide continuity when we need it most. • Bold housing action. The Comprehensive Plan, a major priority for 2025, is crucial to housing availability and affordability — and fundamental to delivering financial sustainability. More residents add character and help spread the costs of 2025 City Manager Proposed Budget services that we all depend on. Plus, more attainable housing helps local businesses — and the City — recruit and retain employees who provide important services, amenities, and local economic development. Perhaps more importantly, many of our residents suffer from the lack of affordable housing options and housing action is key to a more healthy, safe, and equitable community. • Strategic staffing. Our staff size has not grown consistently with the population of residents, and we've been chronically understaffed for many years. Adding positions like a Parks Maintenance Worker, a Water Distribution Maintenance Worker, a Streets Operator, and a Housing Coordinator help us deliver on our core priorities. • Departmental synergy. The budget includes a change in how the City organizes some of our important community services: a combined Community Services Department that incorporates Parks and Facilities teams, the Library department, and adds an arts and culture component to oversee the PT Creative District. The aim is for better, more integrated, more stable delivery of these services to our community alongside a fiscally prudent way of doing so. • Major progress on infrastructure projects. With over $45m of funded infrastructure projects on the books, we continue to move forward with streets, water, sewer, stormwater, parks, facilities and other infrastructure projects that not just catch us up from years of deferred maintenance, but help take us forward in building a stronger, more resilient, and better community for us all. These are but a few ideas captured in the 2025 budget. I encourage you to read through these pages, and I invite you to stay engaged in the budget process. I hope you find it a refreshing change to how we've always done things — perhaps even something that's more clear-eyed, strategic, and honest. Regardless, feel free to reach out to me with your thoughts by email at jmauro(a�cityofpt.us, attend one of my coffee conversations each first Friday of the month (see newsletter or the City's Facebook page for details), or tune in to my regular show on KPTZ each Thursday at 12:30. Better yet, I invite you to explore and discover ways you might be able to get involved to help us deliver on our collective aspirations for a healthier, more resilient, more inclusive Port Townsend for us all. John Mauro City Manager 2025 City Manager Proposed Budget 2025 CITY MANAGER PROPOSED BUDGET The budget is adopted at the fund level. The chart below (which represents Exhibit A to the budget ordinance) provides an overview of the revenues, expenditures, and projected ending fund balances: kt> CITY OF PORT TOWNSEND cityaport<, Townsend 2025 BUDGET FUND SUMMARY 2024 Est. 2025 est. 2025 Projected Ending Revenue Revenue ACTUAL Rev- % from Expense Rev vs. Exp Rev vs. Exp Ending Fund Balance Budget*. YTD Actual BUDGET Rev Budget Budget*, YIE Target Budget Fund Balance GENERAL FUND 4,954,075 16,085,911 0 16,085,911 0 17,091,233 (1,005,322) (1,005,322) 3,948,753 Drug Enforc. / Contingency 255,664 25,000 0 25,000 0 0 25,000 25,000 280,664 A.R.P.A. 281,878 0 0 0 0 265,000 (265,000) (2 65,0()O) 16,878 Street/Transportation Benefit Dist 288,938 2,760,962 0 2,760,962 0 2,136,962 624,000 624,000 912,938 Library 605,635 1,356,000 0 1,356,000 0 1,231,379 124,621 124,621 730,256 Real Estate Excise Tax 1,266,011 685,000 0 685,000 0 897,355 (212,355) (212,35Si 1,053,656 LodgingTax 1,250,331 615,000 0 615,000 0 972,751 (157,751) (357,751) 892,580 Fire / EMS 7,756 0 0 0 0 0 0 0 7,756 Affordable Housing 77,556 92,896 0 92,896 0 92,896 0 0 77,556 Community Development Block Grant 189,433 28,000 0 28,000 0 20,000 8,000 8,000 197,433 Community Services 1,224,598 3,273,679 0 3,273,679 0 3,273,679 0 0 1,224,598 TOTAL SPECIAL REV FUNDS 5,447,800 8,836,537 0 8,836,537 0 8,890,022 (53,485) (53,485) 5,394,315 DEBT SERVICE FUND 2,071,203 1,114,712 0 1,114,712 0 1,114,712 0 0 2,071,203 General Capital 213,528 1,367,699 0 1,367,699 0 1,391,133 (23,434) (23,434) 190,094 Street Capital 624,869 3,371,305 0 3,371,305 0 3,961,488 (rcY90,183) (590,183) 34,686 CAPITAL PROJECTS FUNDS 838,397 4,739,004 0 4,739,004 0 5,352,621 (613,617) (613,617) 224,780 Golf Course 1,776 31,000 0 31,000 0 31,000 0 0 1,776 System Development 2,467,917 385,000 0 385,000 0 1,645,950 (1,260,950l (1,260,950) 1,206,967 Water/ Sewer Operations 6,191,132 10,126,000 0 10,126,000 0 13,697,750 (3,571,750) (3,571,750) 2,619,382 Water/Sewer Capital 127,325 12,510,710 0 12,510,710 0 12,541,313 (30,603) (30,Co 96,722 1956 Trans Line Replacement 8,979,537 4,975,000 0 4,975,000 0 1,639,134 3,335,866 3,335,866 12,315,403 Utility Debt Reserve 585,362 100,000 0 100,000 0 0 100,000 100,000 685,362 Storm Operations 408,345 1,445,000 0 1,445,000 0 1,429,972 15,028 15,028 423,373 Storm Capital 193,688 90,000 0 90,000 0 93,389 (3,389) (1,389 190,299 ENTERPRISE FUNDS 18,955,082 29,662,710 0 29,662,710 0 31,078,508 (1,415,798) (1,415,798) 17,539,284 Public Works Admin 470,595 861,845 0 861,845 0 733,201 128,644 128,644 599,239 IT Equipment O&M / Replacement 231,188 542,425 0 542,425 0 523,891 18,534 18,534 249,722 Fleet Equipment O&M / Replacement 2,247,076 2,024,531 0 2,024,531 0 1,785,127 239,404 239,404 2,486,480 Engineering Services 236,065 2,298,982 0 2,298,982 0 1,450,356 848,626 848,626 1,084,691 Unemployment Self-insurance 15,342 10,000 0 10,000 0 10,000 0 0 15,342 INTERNAL SERVICE FUNDS 3,200,266 5,737,783 0 5,737,783 0 4,502,575 1,235,208 1,235,208 4,435,474 Firemen's Pension 372,121 27,500 0 27,500 0 1,374 26,126 26,126 398,247 Custodial / Refundable Deposits 38,694 0 0 0 0 0 0 0 38,694 Memorial Fund 0 0 0 0 0 0 0 0 0 FIDUCIARY FUNDS 410,815 27,500 0 27,500 0 1,374 26,126 26,126 436,941 GRANDTOTAL 35,877,637 66,204,157 0 66,204,157 0 68,031,045 (t,8*,888) (1,826,888) 34,050,749 AMERICAN RESCUE PLAN ACT 2025 City Manager Proposed Budget The American Rescue Plan Act of 2021 (ARPA) provided $350 billion in funding for state and local governments. The City of Port Townsend was awarded $2,755,388. The first tranche of this funding, $1,373,493, was received in July 2021. The second half was received in July 2022. The funding has limited eligible uses but, in general, can be used for: • Revenue replacement for the provision of government services to the extent the reduction in revenue was due to the COVID-19 public health emergency. • COVID-19 expenditures or negative economic impacts of COVID-19, including assistance to small businesses, households, industries, and economic recovery. • Premium pay for essential workers. • Investments in water, sewer, and broadband infrastructure. Based on updated guidance received from the Federal Treasury in March 2022, the City determined that the best use of the funds received from ARPA is Revenue Replacement. These funds are temporary in nature and non -recurring, so care has been used in allocating these funds in ways that do not add programs that require ongoing financial commitments. In September 2021, the City Council discussed the adoption of three priority pillars when determining the programs/projects these funds would be allocated to. These pillars are 1) support staff, 2) support financial sustainability, and 3) deliver an integrated community backed vision for parks and recreation. Based on these pillars, an array of projects was presented for consideration in both 2021 and 2022. In 2022, 2023, and 2024 all prior projects were reviewed to ensure federal guidance requirements will be met. In addition, all projects were reviewed for funding needs and project timeline. Columns were added to reflect changes each year and a revised 2022-2025 allocation representing the total allocated amount for the project. The funds must be obligated before December 31, 2024, and spent by the end of 2026 as specified in the ARPA Treasury guidelines. The updated project list below totals $2,755,388 and allocates both tranches of fund: 2025 City Manager Proposed Budget AMERICAN RESCUE PLAN ACT (ARPA) FUNDS 2025 BUDGET TOTAL ALLOCATION - $2,755,388 2022 2023-20M4 RWud 2022- Allmoa4lam AL n 20'24 Change 2025 Cham9a 2025 Mort Pillar Project Al osai _ Sa SG Puduc 12c2 al, rim _. _. _. _. _. _. _. _. _. _. _. _. _ Qla _ w_ 54r .._. _. _. _. _. _ � � � � _ 3 t�8kµ7k Staff . Slvaloc � . r 4 ... Stl w �P tw.w.w.w.w.w.w.w.w.w.w.w.w.w.w. f"n v�avft caNw.w.w.w.w.w.w.w.w.w.w.w.w.w.w.w.w. • .w.w.w.w.w.w 40000 $ 10004�Yy, 5 w. `0,000 staff ,�,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_ I{ SiSTari rd'mw{Rknnard.,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_ ,_,_,_,_,_,_,_,_,_,_ _ 30 '._° ,_�. _ _ knprorve IT Mastnncture, $ 100,000 S 50 481 S 50,000 Slatt suppod Police staff vehicle moacerie at $ 25„000 23,300 Stal od Two, ar tormY tl rar ,Ram PBim mmr $ 225 S 15, $ 240, FFua " Suuslain °° Llhr 7WrindowPSaMewn $ I00,000 S 17,000 $ 83,000 F r dal 5 t a d ui ........................ ?Ink 1,tsuw ronmm a J Pogue R 4ri T..........................................109 000 � 100 000 ...... �,.5 � $ ...� � 0 $ ...re 2 dU�P E m SusV rKnr aku" Kata T d F s $.... 35,O0 S 23.000 5.....12 ..._ 07 1 .. ?iawro l Suuslarnalur, PasWa $ 83,533 8� 2. S .: Fm aSustain bu............................ .. ..... Sustalnahi5t Slurs $ ,000 $.....IC0,000 Fuwnar alS'uus4nalm" 5h6atrn7ialch _ $ 50,000 $ 50,000' Fuunar al Sursva adl VVC brier repair $ 50,0D0 $ 50,000 Fur S Ala n RS ...._...._.__ Prolesslom l S iee ulllom ne Serwiues w ................... ,000 _$ ,wawna.._._.._ $ 300,0000 FI era " Suustaioatrr " & Staff 1 K lar4a cal exava4 an $ 40, $ 40,OOOi ............................................................................. adder $ 40 ........ $ 85 500 ..... ........... $ 5�5 . $ 68,000 Fa!nan alSua! Wnabi" & �1 S"1 FV arrlal Snuslatma5rll l & Staff S twl PaAuoe ao naolesx2.......................................................... ....................178,y $... 78,000 S ....356,000' FwnercWal Sustalnahr & 81at1 .... Kick off taowiSw f8 500 wawa wwStafwwwwwwwwww Fama w . Sru,st�"llnatvi, $, Staff ' l www_wwwwwiW,U,,,e, W-wwwwwwwwww,wwwwww,w ,it,..wwwwwwwwww-------------- Kulrcu5°t Cur oars vwl a l019 rr w..................ww_..................... S 25,000 ww www ..... ww ._www $ � $ ��,wwwww� ww ww ww 22�550 Finercial Suslaina*ty & SUiff Support M-excavator $ 65, $ (8275) $ 58,725 F'lnamo&d ausrtahbali &, Skalfi Parma Yt8 $ 8„OW $ 1,825 S 4,175 Fumwpn al S isles a¢d & SteftM S PaAs VaNclas $ 85,000 S 4�, $ 43,000 ' F�w� Su�t�m� �� stirs .... ��� .... .... .... .... ..31 � ��. 122,.... 130,475 . F mug ooW Sus 2anahr8i$ & Stat1 Sar4 Trod $a a mm S at CtnzlGw$................. o...... $ o..........................o.. 15 o.. ,.M.� $ .. oo.......... 15 0130 o ..... Flu al Sursliinahi y & Staff S l FacAty00000.......dure...o.. �9m pR 1: fYSOdP 9 sB elms, �Cuce� S 1 , $ 130,000 dma% a�aa cmrr�, draoa locks r8ancW Sustmnabik & Staft Suppod Cay Hal Carpet F'bw I and 3 $ Ki.000 S (13,500) S 76,500 FkmncW SusWnabiiky & staff Snort Cc trust City FWl PFaw 3 improveneft b support $ 310,ODO ,4 1 $ 40i1,0 1 ............... staff erMmnre nt Vision for Pamlus & Remotion Commurdea ms; and Vdessb al consu W,4 support 25,000 $ 66,931 S 91,931 Isloin for Para & Raex Wesel a9 ur emneuaOron t4 a Croamn�y $ 30,0W ;Sql S 80,000.. H Wh and WWofine G$e tem n ................................................................................................................................... ....W ,O0a0 mse..V....; ,000 $ 33,083 S 44.169 asM s and Rersraador 5'tratmpy $ 10,Odldh S 040 042ry S (I00, y $ 289 958TOTAL2022m-2024ARPAReg gists $W,955 S1„961533.+.. $ 298,526 $ 1CY 9;3 In 2022, a Special Revenue Fund was established to monitor the ARPA revenues and proposed expenditures based on best practice guidance received from the State Auditor's Office to ensure proper accounting and coding for these funds. Anticipated operating expenses and corresponding transfers are reflected in the graphs and materials presented in the budget. 2025 BUDGET ASSUMPTIONS The 2025 City Manager Proposed Budget allocates resources to initiatives included in the City's 2025 strategic workplan. This workplan was developed by staff and reviewed and workshopped with the City Council at an all -day retreat held on July 22, 2024. The 2025 strategic workplan is broken down into five major categories: 2025 City Manager Proposed Budget • INVEST IN OUR PEOPLE Build and nurture the capacity of our staff, teams, volunteers, advisory board members, Councilmembers and partnerships and provide them the toolsets, skillsets, and mindsets to achieve more together. • ENGAGE OUR COMMUNITY Build beyond notification and response to more deeply and inclusively engage our community in decisions that affect their lives and livelihoods as well as ground civic dialogue in civility and kindness. • INNOVATE OUR SYSTEMS, STRUCTURES & PROCESSES Set the City and community up for sustained success through process and structure improvements and optimization. • ENVISION OUR SUSTAINABLE FUTURE AND DELIVER OUR PRIORITY INITIATIVES Deliver the 2025-2045 Comprehensive Plan and associated priorities to catalyze a financially, socially, and environmentally sustainable future. • DELIVER THE BASICS Provide consistent critical operations, ongoing statutory responsibilities, and core City functions. Associated funding in the 2025 budget has been given to specific budgeted items. Staff time for many of the projects is a key component to successful completion. A summary of the City's 2025 strategic workplan is included as part of the 2025 Proposed Budget Book. AFFORDABLE HOUSING Affordable Housing is a key priority for 2025 and beyond. The City continues its work to support efforts for affordable and attainable housing in the city and region. The City has made significant contributions to housing in a variety of ways. Some key examples of these contributions are: Implementation of a Sales & Use Tax for Affordable and Supportive Housing (Substitute House Bill 1406) in the 4t" quarter of 2020. This tax is a tax credit against the state portion of our City sales tax and did not increase the total amount of retail sales tax. Investment of approximately $21,000 per year; cumulative total of $91,000 through 2024. Fee deferrals for housing providers for certain permit fees and system development charges. Providers include Habitat for Humanity, Peninsula Housing, Olympic Housing Trust, Olympic Community Action Program and Bayside Housing & Services. Total investment from 2011-2024 of $813,610. The City obtained a Connecting Housing through Infrastructure Program grant from Department of Commerce to reimburse City utility enterprise funds with $58,055 for the Olympic Housing Trust Dundee Hill utility connections and System Development Charge fee deferrals. 2025 City Manager Proposed Budget • Investment of approximately $62,000 annually for debt service payment with a total commitment over a 20-year period of $1,324,125 for total principal and interest payments. • The City obtained a grant from the Department of Commerce in 2021 to acquire property that will be earmarked for affordable housing — Grant provided investment of $1,375,000 for the property purchase. Fourteen acres was acquired for the Evans Vista Neighborhood. • The City obtained a grant from the Department of Commerce in 2021 to build utility infrastructure to support affordable housing — Grant provides investment of $1, 700,000 for the extension of utilities to lower the cost of building affordable housing. • The City obtained a Middle Housing grant from the Department of Commerce in 2023 to develop middle housing policies and codes —Grant provides $50,000. • The City obtained a Paper to Digital grant from the Department of Commerce in 2024 to transition land use permit for housing to digital in an effort to streamline the housing pipeline —Grant provides $60,000. • The City secured $500,000 in 2022 to Master Plan the Evans Vista neighborhood from the Jefferson County American Rescue Plan Act funds and completed a Master Plan and Pro Forma in 2023. In 2025, the City will draft and market a RFP for development with $115,000 general fund investment, along with 1x personnel increase for a housing grants coordinator over a 2-year term. • In March and September 2024, the City initiated an interim parking ordinance to remove minimum parking requirements for new development to reduce over - parking, impervious surfaces, and housing construction costs (Ordinance 3339). The City Council has also made legislative changes related to housing including: Adopted a package of code updates, The "Tactical Infill Housing Code Update" with $50,000 investment, which included: o Allowing two ADUs per residence, allowed Tiny Houses on Wheels to be used as ADUs. o Eliminated barrier design requirements for cottage housing. o Reducing parking for duplex/triplex/fourplex. Relaxed parking for multifamily in mixed use. o Creating new unit lot subdivision (ULS) tool to enable attached housing to be built on zero lot line and conveyed fee simple. o Allowing ULS for cottage housing, attached fee simple housing, and Tiny House on Wheel Communities. o Allowing employer -provided housing in certain zones to enable housing in zones where it is otherwise prohibited. (Ordinance 3306, 2023) 2025 City Manager Proposed Budget Much of this work was made possible through a 2-year American Rescue Plan Act allocation for a Long -Range Planner and a Professional Services Budget for code amendments. • Adopted 2023 Annual Comprehensive Plan Updates (Ordinances 3322 and 3323), which included: o Permitting greater maximum housing density in the R-IV High Density Multifamily, C-I/MU Neighborhood Serving Mixed Use, Center C-II/MU Community Serving Mixed Use Center, and M/C(S) Mixed Light Manufacturing and Commercial Rainier Subarea zones. o Permitting higher building height in the C-I/MU, C-II/MU, and M/C(S) zones. o Specifying that height restrictions apply to habitable space, not rooftop appurtenances such as elevator towers or water towers. The previous height definition had limited the amount of habitable space since developers were constrained by the height of appurtenances that are necessary for taller buildings, such as elevators. o Permitting greater lot coverage in the R-IV, C-I/MU, C-II/MU, and M/C(S) zones. o Permitting a mixture of vertical and horizontal uses in the mixed -use zones. o Replacing Building Frontage with Minimum Commercial Space and Clear Ceiling Height Requirements in the mixed -use zones. This allows more flexibility in how mixed -use spaces are developed while still preserving the ability to rent commercial space. o Altering floor area ratio (FAR) requirements in the mixed -use zones and M/C(S) zone to encourage greater housing density. o Removing minimum lot size requirement in the M/C(S) zone. o Reducing the minimum lot width required for town houses/rowhouses in the M/C(S) zone. o Allowing projects in the R-IV, C-I/MU, C-II/MU, and M/C(S), to substitute one developed on -street parking space for three developed off-street parking spaces. This preserves more land within lots for the development of housing, commercial space, or other non -parking amenities. It also encourages the development of the right of way. The City also worked in partnership with Jefferson County through our Interlocal Agreement to support affordable housing and homeless housing programs. The Housing Fund Board builds on collaborative efforts from the previous Joint Oversight Board and Housing Task Force to create a budget and plan for the use of collective affordable housing funds like the aforementioned Sales and Use Tax as well as other local -authority funding. This effort aims at greater participation by elected officials and greater transparency in the granting process for a more successful and coordinated program. The City continues to explore additional strategies to promote affordable housing. Grant awards totaling $1.13 million for 2024 and 2025 expenditure, with $501,141 estimated revenues for 2025 to support code and policy updates that will enhance and streamline housing. These grants will include considerable community engagement on how to holistically address housing and quality of life in Port Townsend. These grants include the 2025 Comprehensive Plan Periodic Update, active transportation and climate resiliency, 2025 City Manager Proposed Budget shoreline periodic update, middle housing, paper to digital permitting, and urban forestry plan and tree ordinance amendment. Grant program public outreach activities and deliverables to date on housing included: 1. Middle Housing Gap Memo Draft 2. Middle Housing Focus Group 3. Housing Needs Assessment Draft 4. Comprehensive Plan Open House May 2024 5. Comprehensive Plan Storefront Studio Sessions July 2024 6. Comprehensive Plan Scenarios Workshop October 2024 7. Briefings with City Council, Planning Commission, Parks, Recreation, Trees and Trails, Housing Fund Board, and Climate Action Committee 8. Golf Park outreach booth 9. Elementary and High School classroom presentations 10. Workplace worker meet-up's (Port of Port Townsend September 2024) 11. Farmers Market Comprehensive Plan Booth (June -September 2024) 12. Active Transportation Stakeholder Subcommittee 13. Land Capacity Analysis 14.Open Space Subcommittee 15. Rotary Club presentation 16. Multiple public surveys: Planning Priorities Poll, Active Transportation survey, Vision Swap KEY REVENUE ASSUMPTIONS The City's Property Tax Levy for 2025 is proposed at $4,084,500, which includes the allowable statutory increase of 1.0% plus an adjustment for the value of new construction and refunds. The 1% statutory increase is budgeted at $12,190 for the Library levy and $25,989 for the general fund for 2025. New construction in the city is estimated at $47 million. 2024 Assessed values for 2025 taxes are estimated at $2,990,339,293. The General Levy is allocated via internal transfers to Public Safety & General Services, Community Services (Parks, Trails, Facilities), Affordable Housing initiatives, Debt Service and Fireman's Pension. The Library Lid Lift component of the levy is budgeted at $1,259,500 and is available to be used for library operations. An excess property tax assessment of approximately $150,000 related to the Mountain View Commons voted tax assessment will be levied to fund 50% of the annual debt service for this voted bond. The City had $908,724 of banked levy capacity related to the annexation of City fire services into the East Jefferson Fire District service area. The City Council adopted a post -annexation policy which allowed the City to levy the banked capacity incrementally over a 3-year period. o In 2020, the City Council adopted post -annexation policy allowing the City to levy the first 33% of the banked capacity. Due to the economic conditions during the 2025 City Manager Proposed Budget pandemic, the Council chose not to levy the banked capacity in 2020 for 2021 taxes. o In 2021, the City Council adopted post -annexation policy allowed the City to levy 66%, or $602,610 of the banked capacity in 2021 for 2022 taxes. o In 2022, the City Council adopted post -annexation policy that would allow the City to levy the remaining 34%, or $306,114 of this banked capacity in 2022 for 2023 taxes. The 2022 and 2023 allocations of banked capacity funds for specific projects will be fully expended by the end of 2025. These projects are included in the Capital Improvement Project section of the budget book. The post -annexation policy restricted the use of these funds from 2020 through 2023 for specific uses. The restricted banked capacity funds from both the 2022 and 2023 property taxes have been set aside for specific purpose as outlined in the post -annexation policy. As per the policy and agreement, funds are unrestricted beginning in 2024. The 2024 budget did not allocate funds specifically for projects and instead was included in the General Fund budget as part of the property tax levy. Increases in general fund expenses and streets have put banked capacity funds to work for the benefit of the community. For example, since 2020, the street fund budget has increased by approximately $600,000. Additional details are provided in the Capital Improvement Projects section of the budget book. Below is a chart showing the distribution of property taxes: 2,025 13rollperty Tax Levys $4,084,500 General I...e vy kd I...ibrary I...id I...ift Levy Ld Mountain Vicar Voted I...evy 2025 City Manager Proposed Budget Retail Sales Taxes, in 2025 are projected to come in at 12% above the 2024 adopted budget. A year -over -year comparison for the year-to-date period through September of sales tax data indicates that all sectors showed improvement in 2024 as compared to 2023. In 2025 the City's budget anticipates sales tax to remain on track with the 2024 actual estimates. Below is a chart demonstrating the trend of retail sales taxes over the last five years showing the forecasted growth experienced in 2024 with the expectation to maintain for 2025. Retail Sales Tax Trend $4,000,000 $3,668,405 $M001000 $3,397,900 $3,228,961 $3,054,244 $3,000,OW $2,537,577 $4500,000 $4000,000 $1,500,000 $1,000,000 2021 2022 2023 2024-est 2025.Budget Retail sector as a % 2024 year-to-date Revenue through September. 1% ...... .... ... ... ... ... 1% 4 0 3 %0 1% .......... 2% 3% 6% 1% iiiiiii Other Services m Mari ufaCtUring iiiiii Retail f rade ® Information iiiii Rea[ I state / Dental I easing iiiii I iealth Care /Social Assistance is Accornirm')dation / F:ood iiiiiii Construction iiiiiii Wholesale I rade ir, fi,aiiclooi,tatioi,i/\A/ai,eliousiiig in Administrative Support in Professional Services in Arts, F.:intertainirrient, and Recreation 2025 City Manager Proposed Budget Business & Occupation Taxes are projected to be above the budgeted amount of $900,000 by 22% for 2024. The 2025 amount is forecast to decrease by nearly 16% to $918, 000. Real Estate Excise Taxes (REET) 2025 REET revenues are budgeted at $650,000 based on the 2024 trends. It is difficult to forecast when large commercial properties or large dollar home sales will occur, which can disproportionately distort this revenue source. These funds are restricted to capital improvements or debt service, which reduces the City's reliance on general fund dollars to make up City matching project Funds. Utility Tax revenues in the proposed 2025 budget are based on all City water, sewer, storm water and garbage services. The City imposes an 18% tax on the revenues of the City's storm and surface water, water system and sewer utilities. The City also imposes a 22% utility tax on the revenues of the City's solid waste utility. The 2025 budget is forecasted based on the continuation of the tax. Total public utility tax forecasted for 2025 is $3,078,786 and is intended to support all the general services of the City. Garbage service is required within the City. Garbage utility tax is slated to increase at the monthly service rate increase of approximately 3% (contracted CPI adjustment), or $562,000. Private utility tax rates are 6% of the private utility revenue. The 2024 telephone and electric private utility taxes are estimated to be $928,200. State Shared Revenues are based on distributions that are shared via state revenue assessments. The City receives distributions for liquor profits and tax, criminal justice and marijuana tax distributions, fuel and multi -modal gas taxes, which primarily support Public Safety and Streets. Some of these distributions are population -based with the City's population for 2024 listed by the Office of Financial Management as 10,530. 2025 projected state shared revenue is $412,175. 2025 City Manager Proposed Budget Overhead Cost Recovery is projected to decrease by approximately $24,500, or 1.5% in 2025. The decrease is the result of several factors that are inputs in the City's adopted overhead cost recovery model. The allocation model looks back two years to recover overhead costs occurring in 2022 for 2024. The slow growth revenue in 2024 is primarily the result of allocating less overhead to the Streets, Water, Sewer, and Community Funds due to increased property valuations, increasing costs of services and Council agenda bills in those funds. Utility Revenues (Water, Sewer and Stormwater) are budgeted at the adopted rate increases outlined in the rate tables in Ordinance 3332. The City uses utility rate models provided by FCS Consulting Group to analyze whether our utility rates fully support capital infrastructure and operations of water, sewer, and stormwater. A sewer and stormwater rate study was completed in early 2024 with new utility rates effective April 1, 2024. In 2025, the City is projected to have a total of 5,090 water/sewer accounts with 420, or 7.6%, of those projected to be commercial accounts. Below is a chart demonstrating the growth in commercial and residential water/sewer accounts from 2021 through projected 2025: "'100 Water/"Sewer Utility Account Growth from 2022 - Projected 2025 1-10 N rmmuuuuuuuuuuuuuuuuuuumr aRu,5Eikcniial iumrumnwu d: d A rate study was completed in 2024 and the water, sewer, and stormwater rate model projects revenues for 2025 at $4,206,692, $4,915,034, and 1,611,205 respectively. Total water/sewer/stormwater revenue is forecasted to be $12,633,586 as compared to $11,408,201 in 2024, or a 10.7% increase. As noted earlier, this represents scheduled rate increases in ordinance 3332, and 1 % account growth. Raw water sales are made to both the City and the Paper Mill. The OGWS fund expects raw water sales to total $5,204,771 in 2025 to fund the operations of the system and capital sinking fund. 2025 City Manager Proposed Budget Capital Revenues provide substantial funding for general government, street and utility projects through state and federal grants, Public Works Board, and Department of Ecology loan proceeds. A smaller amount of capital funding may be administered with inter -fund loans, transfers, bank lines of credit or other debt financing. Additional details regarding capital projects are provided later in the budget document. Total Revenues budgeted for 2025 are $65,746,488 and include all anticipated revenue for capital funding, operating funding, and fiduciary funds. overhe $2 other Increases $s2,sa0 Fines & $11 2025 Proposed Revenue by Category $65,746,488 KEY EXPENDITURE ASSUMPTIONS Licenses & Permits, $486,000 Total Expenditures budgeted for 2025 are $68,296,045 and include all operating fund appropriations in addition to water, sewer, general and street capital funds. 2025 City Manager Proposed Budget Debt Si Debt SE 2025 Proposed Expenses by Category $68,296,045 Labor Supplies, 1,663,626 Personnel Wages & Benefits represent a significant portion of the City's operating expenses at $14,966,689 or 22% of proposed operating costs. Removing internal transfers and debt service from operating costs, staffing is 31 % of the total. The City continues to balance the need to retain qualified, capable staff by providing fair and competitive wages while also maintaining appropriate service levels. A salary survey was conducted in 2023 which has resulted in an updated compensation policy for non - represented employees. Recruitment of key positions will continue to be a challenge in 2025 due to a competitive labor market and housing affordability and availability. Elected position salary and health benefits — City Council Member salaries will increase based on the compensation study that was completed in the fall of 2021 by an independent salary commission. Council wages increased in 2024, additional increases will happen in 2026 and 2028. Additional details can be found in the staffing section. City Council Members are eligible to enroll in health benefits as part of the elected position group. Coverage is dependent on group participation, with minimum requirements for the group plan. For non -elected positions, the 2025 budget proposes an increase of 5 positions. There is a total of 113.6 Full Time Equivalent (FTE) positions in the 2025 budget. New budgeted positions include Community Services Director, Arts and Culture Coordinator, Water Maintenance Worker, Streets Operator, and Parks Maintenance Worker. The positions are outlined by departments in the chart below: 2025 City Manager Proposed Budget CITY OF PORT TOWNSEND -AUTHORIZED POSITIONS Department/Division 2021 2022 2023 2024 2025 2025 Increase General Government City Manager 1.0 1.01 1.0 1.0 1.0 0.00 CityAttorney 2.0 2.0 2.0 2.01 2.0 0.00 Communications & Marketing 1.0 1.0 1.0 0.00 Planning & Community Development 8.0 8.5 9.5 10.0 11.0 0.00 Finance, LIB, PRR 9.0 9.0 9.0 9.8 11.0 0.00 Police Admin & Operations 18.6 20.1 22.1 22.3 20.0 0.00 City Clerk/Human Resources 3.6 4.01 5.0 4.8 3.5 0.00 Street 1.7 1.7 1.7 1.9 2.7 1.00 ERR - Fleet & IT 3.0 3.0 3. 4.0 4.0 0.00 Total General Government 46.9 49.3 54.3 56.8 56.2 1.00 Community Services Comm Svcs Administration 0.0 0.0 0.0 0.0 0.7 0.67 Arts & Culture 0.0 0.0 0.0 0.01 1.0 1.00 Facilities 3.5 3.5 3.5 5.5 4.9 0.00 Parks Maintenance & Recreation 3.5 4.2 4.2 4.5 5.5 1.00 Pool 4.0 0.0 0.0 0.0 0.0 0.00 Library 8.9 8.9 8.9 8.9 8.0 -0.67 Total Community Services 19.9 16.6 16.6 18.9 20.0 2.00 Public Works & Utilities (excl UB) Public Works Administration 2.5 2.5 2.5 3.5 2.5 0.0 Public Works Engineering 5.9 6.5 6.5 6.5 8.5 0.0 Utillities Water Distribution 5.0 5.0 5.0 5.0 7.8 1.0 Water Qualit & Resource 4.0 4.0 4.0 4.0 3.5 0.0 Wastewater Collection 2.2 2.2 2.2 2.6 3.4 0.0 Wastewater Treatment 3.5 3.5 3.5 5.0 4.4 0.0 Biosolids 2.5 2.5 2.5 3.0 3.0 0.0 Stormwater 3.1 3.1 3.1 3.81 4.3 0.0 Total Public Works & Utilities 28.7 29.3 29.3 33.4 37.3 1.00 TOTAL CITY FTES 95.5 95.2 100.2 109.11 113.61 4.00 Percentage Change 4.2% Positions not currently counted as FTES 2021 1 2022 1 2023 2024 1 2025 Mayor/Council 1 7.01 7.01 7.01 7.01 7.0 * Total City FTES does not include leave payouts or seasonal positions salaries within the number of FTEs & within the budgeted salaries & benefits amounts. The 2025 budget includes 3 Seasonal Staff for Streets maintenance, Parks Maintenance, Stormwater, Water Distribution, and Wastewater Collection. Seasonal staff are typically hired between May and October and are budgeted at an equivalent to 0.50 FTE each. Employee groups include three sectors, the Police Collective Bargaining Unit, General Collective Bargaining Unit, and non -represented personnel. 2025 City Manager Proposed Budget The Police Collective Bargaining Unit contract was ratified in 2024. Recruiting and retaining officers continues to be a high priority for Port Townsend. The 2025 budget assumes full staffing which includes 16.0 full-time officers. The General Government Collective Bargaining Unit contract expires December 31, 2024. Negotiations for a new contract are in process at this time. Wage increases for this bargaining unit are not included and will be considered as part of a future budget supplement. A salary survey was conducted in 2023 and all positions are placed in Grade Ranges based on current market data. A full list of authorized positions along with the position classification salary schedule, and more detailed budget assumptions is included in the Staffing and Compensation section of the Proposed Budget Book. Benefits offered to employees include medical, dental, vision, long-term disability, life insurance and retirement. Teamsters Local 589 benefit plan covers both the Police and General Government union employees. Association of Washington Cities (AWC) provides benefits to non -represented employees. Retirement contributions for most employees (PERS) are funded at 9.11 % of eligible employee wages. The PERS contribution increased in September 2024. Police officers are covered by the LEOFF retirement system at a rate of 5.32% of eligible employee wages. This participation rate is mandated by the Washington State Retirement System. Employees also have the choice of enrolling in either the MissionSquare (formerly ICMA) or Washington State deferred compensation program which is not employer funded. Washington State minimum wage increases in 2025 to $16.66 per hour, which is a $0.38 per hour, or 2.35%, increase. This increase impacts seasonal wage rates and entry level library staff. Additionally, the increase impacts higher level position through wage compression. Wage compression occurs when pay adjustments regardless of experience, skills or seniority increase the base wage and bring those wages closer to the wages of more senior, experienced, skilled positions. The Director of People & Performance will continue to monitor the impact of minimum wage adjustments on all City positions. 2025 CAPITAL PROJECTS The proposed 2025 budget has a variety of capital projects that add new infrastructure investment and improve aging infrastructure. A breakdown of planned projects is listed in the Capital Project section of the budget. City of Port Townsend General Fund Budget Detail and Summary Cityof Port Townsend GENERALFUND BUDGET SUMMARY General Fund 2022 Actual 2023 Actual 2024 Actual 2024 Budget 2025 Proposed Increase/Decrease 2025 Proposed vs 2024 Budget Beginning Fund Balance 5,311,932 6,905,588 6,554,219 6,554,219 4,953,818 Revenues Taxes 9,019,078 10,804,663 9,627,535 10,786,698 11,769,552 9.1 % Licenses & Permits 638,236 521,806 451,481 496,500 486,000 -2.1 % Intergovernmental Services 1,841,711 476,915 531,804 1,268,657 896,378 -29.3 % Charges for Goods & Services 2,055,288 2,245,457 1,736,743 2,358,475 2,347,084 -0.5 % Fines & Penalties 2,474 3,877 3,734 9,900 11,900 20.2% Miscellaneous Revenue 206,956 404,609 322,474 306,781 378,997 23.5 % Other Increases 20,841 390 500 35,000 35,000 0.0 % Other Financing Sources (inc. Transfers In) 142,735 105,462 - 305,000 161,000 -47.2 % Total Revenue 13,927,319 14,563,178.82 12,674,272 15,567,011 16,085,911 3.3% Expenditures Salaries & Wages & Benefits 4,508,624 5,232,921 4,553,506 6,647,404 6,841,374 2.9 % Supplies 85,736 91,507 87,817 208,400 183,156 -12.1 % Services 2,346,578 2,977,112 3,567,572 5,059,299 4,231,D00 -16.4% Capital Outlays 177,785 287,213 181,797 199,650 134,D00 -32.9% Debt Service - Principal - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) 5,214,941 6,325,795 5,883,981 5,905,089 5,701,703 -3.4% Total Expenditure 12,333,664 14,914,548 14,274,672 18,019,842 17,091,233 -5.2% Net Change in Fund Balance 1,593,656 (351,369) (1,600,400) (2,452,831) (1,005,322) -59.0% Ending Fund Balance 6,905,588 6,554,219 4,953,818 4,101,388 3,948,496 Fund Bal. 8-15 % of Revenue 49.6% 45.0% 39.1% 26.3% 24.5% General Fund - Expenditures by Department Mayor & Council 122,362 136,662 169,565 291,434 237,581 -18.5% City Manager 369,151 312,247 273,461 329,518 357,377 8.5% City Attorney 483,504 647,013 654,887 826,288 762,723 -7.7% Communications - 40,000 40,000 75,000 187,736 150.3% Human Resources 340,690 367,008 398,217 519,562 495,865 -4.6% Planning & Development Services 1,108,492 1,257,465 1,308,201 2,510,217 2,140,316 -14.7% Finance Department 465,764 594,106 847,010 1,090,846 1,055,130 -3.3% Police Administration 552,993 943,289 1,035,890 1,360,288 1,219,402 -10.4% Police Operations 2,791,357 3,061,826 2,386,899 3,731,219 3,753,359 0.6% Police Training 21,073 15,181 10,355 41,750 44,100 5.6% City Clerk 294,896 424,890 311,610 415,503 254,588 -38.7% Contracts & Intergovernmental 663,083 884,767 923,901 984,339 978,843 -0.6% PEG Access 1,716 3,211 1,905 9,000 2,000 -77.8% Non -Departmental (inc. Transfers Out) 5,118,584 6,226,882 5,912,771 5,909,878 5,602,213 -5.2% Total Expenditures 12,333,664 14,914,548 14,274,672 18,094,842 17,091,233 -5.5% Manor & Council Goal Statement: To provide strategic decision -making and policy direction as elected leaders and positive change -makers for the community they represent and serve, clearly understood and operationalized by City staff. 2025 Key Goal: • Mayor and City Council are equipped with the training, tools, and technical know-how to do their jobs well on behalf of the community they serve. 2025 Work Plan: • Invest in our people — build and nurture the capacity of... Councilmembers and partnerships and provide them the toolsets, skillsets, and mindsets to achieve more together. • Engage our community — nurture civil civic dialogue, effective provision of information, and a more productive, active, and positive partnership with our community. • Envision our sustainable future and deliver our priority initiatives — deliver the Comprehensive Plan and associated priorities to catalyze a financially, socially, and environmentally sustainable future. City Manager Goal Statement: To deliver integrated, strategic, and sustainable value from the City organization to the community by operationalizing City Council policy direction, developing and leveraging partnerships, enhancing staff and team performance, providing clear direction, nurturing deep community participation and engagement, and ensuring continuous delivery of quality services. 2025 Key Goal: • Organization aligns short and long-term decision -making with the foundational work of the Financial Sustainability Initiative, nurturing a collaborative and can -do organizational culture, and bringing strategy and synergy to the City's work and our success in partnering and stewarding our collective future with the community we serve. 2025 Work Plan: • Integration of core strategic workplan pillars like invest in our people, engage our community, and innovate our systems as the "how" to more effectively deliver the "what" of the Comprehensive Plan and associated initiatives, and aligning with the "why" of fiscal, social, and environmental sustainability for a better and more equitable community. City Attorney Goal Statement: To ensure the City's compliance with regulatory and legal requirements, including the open public meetings act, the public records act, and bidding requirements; to provide clear and direct legal advice and risk management services; and to support the other City departments in completing their priorities. 2025 Key Goal: • Effective stewardship and resolution of litigation. 2025 Work Plan: • Support other departments in work plan items, particularly land -use, Comprehensive Plan, and public works -related priorities and well as providing public records support and guidance. Communications Goal Statement: Ensure our community is deeply engaged in decisions that affect their lives and livelihoods, and ensure our teams are supported and aligned in our strategies for engagement. 2025 Key Goals: • Refine and stabilize systems for aligned communications across City channels. • Build lasting relationships and trust for our internal teams and community, including support for staff engagement and facilitating strong community partnerships. • Facilitate kindness & connectivity in community dialogue and welcome diverse viewpoints. • Support public education around the City's work with a focus on financial sustainability. 2025 Work Plan: • Refresh the City website and increase accessibility tools, including building a library of people -centered creative assets. • Broaden the reach of our print and digital newsletters and address barriers to access. • Collect, analyze, and utilize data on engagement across our channels. • Define roles and train PELs for sustainable contributions to communications and marketing. • Broaden our relationships with media & partner organizations and develop new pathways for city communications and educational materials. • Work with Department staff and Advisory Boards to initiate and continue targeted and forward -thinking outreach on policy and projects. People & Performance/Human Resources and City Clerk Goal Statement: To recruit, develop, and retain a high -performing and diverse workforce, to assist in providing accessibility and transparency in effective public meetings and contracting, and to create and support a culture of growth and development, accountability, engagement, productivity, and effective communication. 2025 Key Goal: • Attract and hire qualified candidates. • Reduce employee turnover and maintain a high level of employee engagement. • Provide opportunities for continuous learning and professional growth. • Improve staff engagement and job satisfaction. 2025 Work Plan: • Develop programs to recognize and reward employee performance. • Launch engagement survey, evaluate and analyze results, and incorporate suggestions for improving employee engagement. • Identify skill or development gaps and develop training programs to address them. • Update employee policies and programs to ensure best practices are in place. Planning & Development Services Goal Statement: To steward the public engagement and community visioning process with Planning Commission and City Council to update the Comprehensive Plan in such a way that ensures equity, sustainability, and consistent implementation. Administer and enforce provisions of building, zoning, land division, environmental protection, streets, and relevant utility codes to ensure compliance with the Comprehensive Plan, state, federal and other city statutes. 2025 Key Goal: • Initiate and complete Phase II of the 2025 Comprehensive Plan Periodic Review process to update elements and implementation actions for the plan with additional appendices including an Urban Forestry Plan, Housing Needs Assessment as well as an update to the Active Transportation Plan. Prepare proposed development regulation amendments for 2025 adoption to implement the new Comprehensive Plan and ensure consistency with newly adopted state laws such as those pertaining to design review, meeting housing forecast for various income groups, ADU's, and permitting timelines. • Streamline the process of adding housing units to the development pipeline with policy, regulatory, and procedural improvements. • Complete the Shoreline Master Program update with focus on climate resilience goals, policies, and implementation for the downtown Water walk to provide public access and sea level rise protection. • Update Critical Areas Ordinance according to Best Available Science. • Use state grant funding through HB 5290 to final e-permitting enhancements to support customer stakeholders and construction/housing data analysis reporting. Use grant funds to complete informative videos on how to avoid frequent permit application mistakes. • Hire Housing Coordinator to assist with Evans Vista marketing, proposal evaluation, and construction agreements. • Execute development agreement for Evans Vista. • Hold public hearing on Evans Vista subdivision and issue permitting decision. • Conduct public outreach and begin drafting Urban Forestry Plan and tree conservation ordinance amendments with USDA IRA grant funds. • Initiate annual fire life safety inspections for commercial and multifamily occupancies in concert with East Jefferson Fire Rescue 2025 Work Plan: • Continue to develop, implement, and refine code and Comprehensive Plan changes to help unlock and inspire affordable, dense, quality infill development. • Implement the community's vision for Evans Vista neighborhood and deliver infrastructure to make it development ready. • Develop and market RFP for Evans Vista phased development. • Develop an open space plan including 2025 Comprehensive Plan update assessment of buildable lands inventory/land capacity analysis. • Revisit Tree Conservation Ordinance for private property and tree retention policies for right of way. • Complete Shoreline Master Program and Critical Area Ordinance updates. • Develop strategic plan for housing, including housing assessment and inventory. Finance Department Goal Statement: Provide required and desired financial reporting and practices, steward preparation and collective oversight of balanced funds and budgets needs to ensure the success of all departmental and organizational activities. 2025 Key Goal: • Work closely with the City Council and City Leadership to deliver Council actions from Financial Sustainability Initiative. 2025 Work Plan: • Address streets, parks, facilities funding needs and prioritize investments, considering future year priorities and phased investments. • Revise budget schedule, process and reporting through improved processes and integrated software. Police Department Goal Statement: To work in partnership with our community to provide a safe and compassionate environment while reducing crime and the fear of crime. 2025 Key Goal: • Become fully staffed using innovative recruiting and retention strategies. • Train and equip officers so they can provide the best possible service to the community while maintaining a high level of morale. • Partner with the community to build trust while solving crime and reducing the fear of crime. • Hold officers to the highest standards through the use of policing best practices. 2025 Work Plan: • Sustainable staffing for Police Team • Path to Accreditation • Strategic Planning • Chief's Cabinet/Advisory Forum City of Port Townsend CONTINGENCY FUND RAINY DAY FUND BUDGET SUMMARY Contingency Fund 2022 2023 2024 2024 2025 Increase/Decrease Rainy Day Fund Actual Actual Actual Budget Proposed 2025 Proposed vs 2024 Budget Beginning Fund Balance 200,828 202,060 202,965 202,965 254,579 Revenues Taxes - - - - - Licenses & Permits Intergovernmental Services Charges for Goods & Services Fines & Penalties - - - - Miscellaneous Revenue 1,232 904 6,615 13,000 Otherincreases - - - - - Other Financing Sources (inc. Transfers In) - - 45,000 45,000 12,000 -73.3% Total Revenue 1,232 904 51,615 45,000 25,000 -44.4% Expenditures Salaries & Wages & Benefits - - - - - Supplies Services Capital Outlays Debt Service - Principal Debt Service - Interest Other Financing Uses (inc. Transfers Out) Total Expenditure - - - - - Net Change in Fund Balance 1,232 904 51,615 45,000 25,000 -44.4% Ending Fund Balance 202,060 202,965 254,579 247,965 279,579 Fund Balance must be less than Assessed Valuation: 2,806,305,510 37.5 cents per $1,000 1,052,365 v Fund Balance 2% of GF Rev 1.5% 1.4% 1.7% 2.0% 1.7% FALSE City of Port Townsend ARPA American Rescue Plan Act Fund BUDGET SUMMARY 2022 2023 2024 2024 2025 Increase/Decrease ARPA Actual Actual Actual Budget Proposed 2025 Proposed vs 2024 Budget Beginning Fund Balance 2,299,505 1,718,771 1,718,771 265,000 Revenues Taxes - - - - Licenses & Permits Intergovernmental Services Charges for Goods & Services Fines & Penalties - - - Miscellaneous Revenue 40,883 24,115 25,000 -100.0% Other Increases - - - - Other Financing Sources (inc. Transfers In) 2,755,388 - - - Total Revenue 2,755,388 40,883 24,115 25,000 -100.0% Expenditures Salaries & Wages & Benefits - - - - Supplies Services Capital Outlays Debt Service - Principal Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) 455,883 621,617 25,499 1,500,000 265,000 -82.3% Total Expenditure 455,883 621,617 25,499 1,500,000 265,000 -82.3% Net Change in Fund Balance 2,299,505 (580,734) (1,384) (1,475,000) (265,000) -82.0% Ending Fund Balance 2,299,505 1,718,771 1,717,387 243,771 0 Sufficient to Meet Obligations 16.5% 11.8% 11.8% 1.9% 0.0% City of Port Townsend Library Fund Budget Detail and Summary City of Port Townsend LIBRARY FUND BUDGET SUMMARY Library Fund 2022 Actual 2023 Actual 2024 Actual 2024 Budget 2025 Proposed Increase/Decrease 2025 Proposed vs 2024 Budget Beginning Fund Balance 523,690 610,946 644,959 644,959 605,635 Revenues Taxes 1,155,744 1,185,069 892,528 1,229,005 1,259,500 2.5% Licenses & Permits - - - - - Intergovernmental Services 8,233 Charges for Goods & Services - - - Fines & Penalties 1,135 1,099 1,199 - - Miscellaneous Revenue 9,849 26,044 55,201 33,700 96,500 186.4 % Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - - - - Total Revenue 1,166,728 1,220,445 948,929 ® 1,262,705 1,356,000 7.4% Expenditures Salaries & Wages & Benefits 614,872 683,615 577,138 731,752 675,139 -7.7% Supplies 100,869 117,116 67,697 93,779 96,736 3.2% Services 363,117 379,879 343,418 419,902 389,504 -7.2% Capital Outlays 614 5,823 - 1,000 5,000 400.0% Debt Service - Principal - - - - Debt Service - Interest - Other Financing Uses (inc. Transfers Out) - 65,000 Total Expenditure 1,079,472 1,186,433 988,253 1,246,433 1,231,379 -1.2% Net Change in Fund Balance 87,256 34,012 (39,324) 16,272 124,621 665.9% Ending Fund Balance 610,946 644,959 605,635 661,230 730,256 Fund Balance 5-8% of Tax Rev. 52.9% 54.4% 67.9% 53.8% 58.0% Goal Statement: The City Library's mission is: Uplifting our community through reading, learning, connection, and creativity. Main areas of work: • Books and material circulation, databases, e-books and e-audiobooks, children's web resources, interlibrary loan • Programs and events, including youth, teen, and adult programming. • Staff response to patron requests and associated services • Building strong relationships with community partners to deliver strong social and emotional infrastructure to the community. • Access to technology • Access to services, collections, and spaces with diversity, equity, and inclusion being paramount to library work Link to library's strategic plan: Ifs:!tjp�J/p Ip�lbll.iicllillbl.......... „Orq/sines/defaullt/fiilles/fiilleattaclh�ments/Iliilbirair�p ale/� G� /I�tl�ll stirate iic Ilan 2021 2b updated for 2.024 .pdf 2025 Key Goals: • We will use our Core Services, partnerships, assets, and resources to continue to advance four Strategic Initiatives designed to help us be the best possible library for the Port Townsend community: o Increase equitable access to library offerings to serve all Port Townsend residents and visitors according to their needs, interests, and abilities. o Build community as a trusted convener and connector, both within and beyond library walls. o Help our Port Townsend community learn, do, create, and share. o Make efficient and effective use of local and regional resources. 2025 Work Plan: • Library Capital Projects: Pink House exterior restoration • Help further produce "How Your City Works" programs and materials. • Work through issues with financial sustainability, including options analysis on balancing revenues and levels of service. City of Port Townsend REAL ESTATE EXCISE TAX FUND BUDGET SUMMARY Increase/Decrease 2022 2023 2024 2024 2025 REET Actual Actual Actual Budget Proposed 2025 Proposed vs 2024 Budget Beginning Fund Balance 801,111 1,203,130 1,335,631 1,335,631 1,266,011 Revenues Taxes 941,896 695,361 492,539 675,000 650,000 -3.7% Licenses & Permits - - - - - Intergovernmental Services Charges for Goods & Services Fines & Penalties - - - - - Miscellaneous Revenue 6,420 25,209 31,715 20,000 35,000 75.0% Otherincreases - - - - - Other Financing Sources (inc. Transfers In) - - Total Revenue 948,316 720,570 524,255 695,000 685,000 -1.4% Expenditures Salaries & Wages & Benefits - - - - - Supplies Services Capital Outlays Debt Service - Principal Debt Service- Interest - - - - - Other Financing Uses (inc. Transfers Out) 546,296 588,069 593,875 704,700 897,355 27.3% Total Expenditure 546,296 588,069 593,875 704,700 897,355 27.3% 593,875 Net Change in Fund Balance 402,019 132,501 (69,620) (9,700) (212,355) 2089.2% Ending Fund Balance 1,203,130 1,335,631 1,266,011 1,325,931 1,053,656 Sufficient to Meet Obligations Il U U 1U11 City of Port Townsend Lodging Tax Fund Budget Detail and Summary City of Port Townsend LODGING TAX FUND BUDGET SUMMARY Lodging Tax 2022 Actual 2023 Actual 2024 Actual 2024 Budget 2025 Proposed Increase/Decrease 2025 Proposed vs 2024 Budget Beginning Fund Balance 415,629 721,406 1,006,981 1,006,981 1,250,331 Revenues Taxes 602,167 640,736 528,096 525,000 600,000 14.3% Licenses & Permits - - - - - Intergovernmental Services - - - - - Charges for Goods & Services Fines & Penalties - - - - - Miscellaneous Revenue 3,426 14,960 11,177 10,000 15,000 50.0% Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - - - - Total Revenue w 605,593 655,696 539,273 535,000 615,000 15.0% Expenditures Salaries & Wages & Benefits 30,920 60,878 75,199 83,282 10.7% Supplies - - - - - Services 149,641 212,117 116,443 309,918 447,469 44.4% Capital Outays 25,175 12,500 14,435 20,000 67,000 235.0% Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) 125,000 114,583 104,167 125,000 375,000 200.0 % Total Expenditure 299,816 370,121 295,923 530,117 972,751 83.5% Net Change in Fund Balance 305,777 285,576 243,350 4,883 (357,751)-7426.5% Ending Fund Balance 721,406 1,006,981 1,250,331 1,011,864 892,580 Sufficient to Meet Obligations Goal Statement: Port Townsend Lodging Tax Advisory Committee's (LTAC's) vision of sustainable tourism is to reinvest community resources to enhance the lives of both residents and visitors. 2025 Key Goals: • Gather and analyze data to use in planning and grant -making decisions. • Support a balance of infrastructure and marketing investment. • Build key relationships to further LTAC's vision of sustainable tourism 2025 Work Plan: • Provide sustainable, long-term support to the Port Townsend Creative District with partial funding for a staff position and programs; • Continue the Community Marketing Grants program; • Fund continued operations of a new model for Port Townsend Visitor Information Services including an in -person hub at Fort Worden, a mobile greeter program Downtown, event promotion via our readerboard, a new brand identity, and refreshed website; • Explore the path forward for a digital readerboard to replace analog readerboard; • Increase downtown winter lighting; • Hire consultant for Downtown economic impact study with a focus on tourism and arts and culture; • Begin planning for Downtown restroom and visitor kiosk project. City of Port Townsend AFFORDABLE HOUSING FUND BUDGET SUMMARY Increase/Decreas 2022 2023 2024 2024 2025 Affordable Housing 2025 Proposed vs Actual Actual Actual Budget Proposed 2024 Budget Beginning Fund Balance 87,658 83,535 113,046 113,046 77,556 Revenues Taxes 92,688 21,329 16,013 30,000 18,140 -39.5% Licenses & Permits - - - - - Intergovernmental Services Charges for Goods & Services Fines & Penalties - - Miscellaneous Revenue 375 78 77 100 Otherincreases - - - - Other Financing Sources (inc. Transfers In) - 70,000 - 65,000 74,656 14.9% Total Revenue 93,064 91,407 16,090 95,000 92,896 -2.2% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - Services 35,291 31,000 31,000 0.0% Capital Outlays - - - Debt Service - Principal Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) 61,896 61,896 51,580 61,896 61,896 0.0% Total Expenditure 97,187 61,896 51,580 92,896 92,896 0.0% Net Change in Fund Balance (4,123) 29,511 (35,490) 2,104 - -100.0% Ending Fund Balance 83,535 113,046 77,556 115,150 77,556 Sufficient to Meet Obligations Tno City of Port Townsend COMMUNITY DEVELOPMENT BLOCK GRANTS BUDGET SUMMARY 2022 2023 2024 2024 2025 Increase/Decrease CDBG 2025 Proposed vs Actual Actual Actual Budget Proposed 2024 Budget Beginning Fund Balance 163,538 159,317 159,216 159,216 189,433 Revenues Taxes - - - - - Licenses & Permits - - - - - Intergovernmental Services 15,718 18,341 23,347 20,000 23,000 15.0% Charges for Goods & Services - - - - - Fines & Penalties - - - - Miscellaneous Revenue 995 937 6,870 5,000 Other Increases - - - - Other Financing Sources (inc. Transfers In) - - - - - Total Revenue 16,713 19,278 30,217 20,000 28,000 40.0% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - - Services 20,935 19,378 20,000 20,000 0.0% Capital Outlays - - - - Debt Service - Principal Debt Service - Interest Other Financing Uses (inc. Transfers Out) - - - - Total Expenditure 20,935 19,378 20,000 20,000 0.0% Net Change in Fund Balance (4,222) (100) 30,217 8,000 Ending Fund Balance 159,317 159,216 189,433 159,216 197,433 Sufficient to Meet Obligations City of Port Townsend GENERAL OBLIGATION DEBT SERVICE BUDGET SUMMARY Increase/Decreas 2022 2023 2024 2024 2025 G.O. Debt Service 2025 Proposed vs Actual Actual Actual Budget Proposed 2024 Budget Beginning Fund Balance 155,559 397,719 1,115,855 1,115,855 2,071,203 Revenues Taxes 636,687 420,506 348,673 415,000 150,000 -63.9% Licenses & Permits - - - - - Intergovernmental Services Charges for Goods & Services Fines & Penalties - - - - - Miscellaneous Revenue 6,874 15,971 20,443 10,000 22,501 125.0% Otherincreases - - - - - Other Financing Sources (inc. Transfers In) 1,309,180 3,024,538 863,162 1,082,896 942,211 -13.0% Total Revenue 1,952,740 3,461,014 1,232,278 1,507,896 1,114,712 -26.1% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - Services 2,400 700 2,500 -100.0% Capital Outlays - - - - - Debt Service- Principal 1,286,413 2,190,265 198,165 542,580 605,513 11.6% Debt Service- Interest 421,767 551,914 78,765 523,100 509,199 -2.7% Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 1,710,580 2,742,879 276,929 1,068,180 1,114,712 4.4% Net Change in Fund Balance 242,160 718,136 955,348 439,716 - -100.0% Ending Fund Balance 397,719 1,115,855 2,071,203 1,555,571 2,071,203 Sufficient to Meet Obligations Tno City of Port Townsend Combined - Community Services Fund Budget Detail Community Services - Parks Fund Facilities Replacement & Reserve Fund Arts Component (PTAC, Creative District Commu n ity Svs Beginning Fund Balance Revenues Taxes Licenses & Permits Intergovernmental Services Charges for Goods & Services Fines & Penalties Miscellaneous Revenue Other Increases Other Financing Sources (inc. Transfers In) Total Revenue Expenditures Salaries & Wages & Benefits Supplies Services Capital Outlays Debt Service - Principal Debt Service - Interest Refundable Deposits Other Financing Uses (inc. Transfers Out) Total Expenditure Net Change in Fund Balance City of Port Townsend COMMUNITY SERVICES FUND BUDGET SUMMARY 2022 2023 2024 2024 2025 Actual Actual Actual Budget Proposed 535,955 594,848 703,032 703,032 1,224,598 599,812 231,550 214,550 247,000 279,148 100,000 (100,000) - - - 5,735 50,775 27,997 55,000 1,500 79,588 62,856 73,907 79,550 67,000 24,958 15,650 15,320 2,000 17,500 1,285,607 2,259,521 2,228,488 2,633,462 2,908,531 2,095,700 2,520,353 2,560,261 3,017,012 3,273,679 825,003 1,021,085 838,305 1,296,743 1,204,846 169,250 229,896 168,720 222,056 295,126 925,954 1,068,859 910,203 1,262,060 1,623,707 31,954 77,116 87,167 105,996 90,000 81,511 3,259 2,036,931 58,769 Ending Fund Balance 594,723 Fund Bal. 2-3 % of Expenditures Community Services Fund - Expenditures by Department City Facilities Mountian View Facilities Parks Maintenance Parks Strategy Events Pool Non -Departmental (inc. Transfers Out) Total Expenditures 15,212 15,300 - 19,000 2,412,169 2,038,695 108,183 521,566 703,032 1,224, 598 - 60,000 2,886,856 3,273,679 Increase/Decrease 2025 Proposed vs 2024 Budget 13.0% -97.3% -15.8% 775.0% 10.4% 8.5% -7.1 32.9% 28.7% -15.1% 13.4% 130,156 --100.0% 833,188 1,224,598 601,174 872,933 758,578 1,117,430 1,232,430 174,725 161,333 157,879 180,101 221,101 654,839 785,181 403,046 764,311 1,093,896 - - 273,424 273,424 124,427 320 - 2,998 5,000 - 390,001 343,215 277,067 366,389 368,325 84,321 53,691 36,825 12,000 233,500 1,905,380 2,216,353 1,909,817 2,718,656 3,273,679 10.3% 22.8% 43.1 % -54.5% -100.0% 0.5% 1845.8% 20.4% Community Services — Facilities, Parks, (Library separate fund), and Arts Goal Statement: Proposal: A combined Community Services (Parks, Facilities) and Library department (the library is a separate fund) with the addition of an arts and culture element to oversee the existing PT Creative District. Ultimately the reason for the change is for better, more integrated, more stable delivery of services to our community — with inclusive programming for all ages and an emphasis on youth and families. There are many elements to the why, including how we enhance each team and set ourselves up for sustained success. The City of Port Townsend Community Services Department is responsible for managing and maintaining city buildings and parks, stewarding the pool contract with the YMCA and the golf park contract for operations, and stewarding leases on the Mountain View Campus. The mission of the Department is to provide safe, equitable, and inclusive access to parks, recreation, and city facilities that strengthen the bonds of the community by enriching and enhancing the quality of life for the Port Townsend community. Additionally, we look to be stewards for self-sustaining urban and community forestry programs that look to preserve, establish and maintain trees, forest and understory for the community and increase the quality of life. 2025 Key Goals: • Create an integrated Community Services Department that combines Parks, Facilities, Library, and Arts. • Add the PROS plan to the Comprehensive Plan update. • With the addition of two new full-time staff in a dedicated custodian and a new city-wide electrician our facilities team will continue to work towards improving efficiency and effectiveness of preventative maintenance as well as system repairs. • The facilities division goal for next year is to improve internal service through training and upgrades to city systems. The aging Mountain View Pool also is challenging for the facilities team to maintain and keep operational. • Achieving facilities goals is reliant on an additional full-time employee for janitorial support included in this year's budget proposal. This strategy will provide time for skilled employees to perform proactive maintenance and special projects such as small remodels typically contracted. • The parks division proposes to expand deferred maintenance for trails and trees. The division looks forward to expanding the volunteer program consistent with the work plan goals. The department will look to hire and manage seasonals based on behalf of parks and streets which also will leverage the volunteer efforts. • Develop an urban forestry program. • Continue to implement building repair and remodel projects. • Develop sustainable park funding and strive for equitable distribution of funds in parks and trails. • Implement decisions made around the future of the aquatics/community health and wellness center. 2025 Work Plan: • The division also will complete repairs of the Pink House and Pope Marine for restoration opportunities. • The facilities division will invest in ADA upgrades to the Council Chambers elevator street access door. • The facilities division will support investments of grant funding for upgrades to the library. • The parks division will complete the kitchen shelter project based on the 2022 banked capacity funding. • The parks division will contract for a master plan for a future neighborhood park on property located near Madrona Ridge. • The facilities division seeks to perform a buildings assessment and capital improvement plan to better understand investment needs based on proactive maintenance and develop a model for a facilities repair and replacement fund. • With the new addition of caretaker, the parks division has the goal of rehabilitating the Kah Tai restrooms. • The parks division will also be part of an open space planning effort in the coordination of maintenance with the Jefferson Land Trust. • The parks division will continue to further short-term funding for parks strategy which includes significant projects of evaluating a health and wellness center to replace Mountain View Pool as well as evaluation of the Golf Course and its future use. • Participate in open space planning and the Non -Motorized Plan update associated with the Comprehensive Plan update. • Perform asbestos abatement in preparation for demolish the Golden Age Club and Parks House buildings which have fallen into disrepair. • The parks division will begin the process of removing poplars along Sims Way in Kah Tai nature park according to the updated Gateway Development Plan. • As part of the periodic Comprehensive Plan update, the PROS plan will be updated as well to meet State requirements and maintain eligibility for RCO. • The ADA transition plan will be updated for parks • Create a new Arts & Culture position funded in part by LTAC. • PT Main Street transitions the stewardship of the Creative District to the City under the enhanced Community Services Department • Plan an integrated All Staff Day for teambuilding and staff training for the Parks, Facilities, Library, and Arts staff. City of Port Townsend GENERAL CAPITAL IMPROVEMENTS BUDGET SUMMARY Increase/Decrease 2022 2023 2024 2024 2025 General Capital Improvements 2025 Proposed Actual Actual Actual Budget Proposed vs 2024 Budget Beginning Fund Balance 5,661 550,806 95,586 1,006,024 338,551 Revenues Taxes - - - - - Licenses & Permits - - - Intergovernmental Services 500,000 179,533 196,450 Charges for Goods & Services - - - Fines & Penalties - - - - - Miscellaneous Revenue 20,382 14,101 1,130 7,500 1,500 -80.0% Other Increases (1,490) - - - - Other Financing Sources (inc. Transfers In) 248,820 736,257 989,413 919,807 1,164,249 26.6% Total Revenue 767,712 929,891 990,543 927,307 1,362,199 46.9% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - - - Services 24,808 18,630 15,525 18,630 18,630 0.0% Capital Outlays 190,054 1,366,482 442,691 923,421 1,303,254 41.1% Debt Service - Principal - - - - - Debt Service - Interest Retainage Disbursements (2,004) - Other Financing Uses (inc. Transfers Out) - - 289,362 - - Total Expenditure 212,858 1,385,112 747,579 942,051 1,321,884 40.3% Net Change in Fund Balance 554,854 (455,220) 242,965 (14,744) 40,315 -373.4% Ending Fund Balance 560,515 95,586 338,551 991,280 378,866 Sufficient to Meet Obligations II City of Port Townsend STREET CAPITAL IMPROVEMENT FUND BUDGET SUMMARY Increase/Decrease 2022 2023 2024 2024 2025 Street Capital Improvement Actual Actual Actual Budget Proposed 2025 Proposed vs 2024 Budget Beginning Fund Balance 40,410 124,173 795,802 795,802 1,094,374 Revenues Taxes - - - - - Licenses & Permits - - - - - Intergovernmental Services 461,383 373,723 2,724,174 4,981,146 2,508,608 -49.6% Charges for Goods & Services - - - - 10,000 Fines & Penalties - - - - - Miscellaneous Revenue 355 6,725 10,895 187,500 33,000 -82.4% Otherincreases 2,055 - - - - Other Financing Sources (inc. Transfers In) 242,507 1,002,352 4,586,557 1,169,893 613,355 -47.6% Total Revenue 706,299 1,382,800 7,321,627 6,338,539 3,164,963 -50.1% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - - - Services 45,182 34,978 29,148 34,978 34,978 0.0% Capital Outlays 572,778 676,194 4,515,204 5,535,510 3,926,510 -29.1% Debt Service - Principal - - - - - Debt Service- Interest - Retainage Disbursements 4,576 - Other Financing Uses (inc. Transfers Out) - - 2,478,702 - - Total Expenditure 622,536 711,172 7,023,055 5,570,488 3,961,488 -28.9% Net Change in Fund Balance 83,763 671,629 298,572 768,051 (796,525) -203.7% Ending Fund Balance 124,173 795,802 1,094,374 1,563,853 297,849 Sufficient to Meet Obligations City of Port Townsend Stormwater Operations Fund Budget Detail and Summary City of Port Townsend STORMWATER OPERATIONS BUDGET SUMMARY Stormwater 2022 Actual 2023 Actual 2024 Actual 2024 Budget 2025 Proposed Increase/Decrease 2025 Proposed vs 2024 Budget Beginning Fund Balance 738,472 677,661 510,609 510,609 408,345 Revenues Taxes - - - - - Licenses & Permits Intergovernmental Services - - - - - Charges for Goods & Services 1,236,391 1,239,893 1,239,386 1,209,324 1,425,000 17.8% Fines & Penalties - - - - - Miscellaneous Revenue 6,015 15,362 21,244 14,500 20,000 37.9% Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - - - - Total Revenue 1,242,406 1,255,255 1,260,630 1,223,824 1,445,000 18.1% Expenditures Salaries & Wages & Benefits 311,131 330,071 315,379 461,731 413,929 -10.4% Supplies 36,701 67,174 63,300 82,539 79,527 -3.6% Services 449,786 438,759 427,799 535,601 484,712 -9.5% Capital Outlays 9,033 - - 6,000 6,.000 0.0% Debt Service - Principal 49,225 50,702 52,223 60,000 50,702 -15.5% Debt Service - Interest 32,136 30,660 29,139 40,000 30,660 -23.4% Other Financing Uses (inc. Transfers Out) 415,205 504,941 475,055 715,515 364,442 -49.1% Total Expenditure 1,303,217 1,422,307 1,362,895 1,901,386 1,429,972 -24.8% Net Change in Fund Balance Ending Fund Balance 60 Days of Operating Ex Stormwater Operations Goal Statement: (60,811) (167,052) (102,264) (677,562) 15,028-102.2% 677,661 510,609 408,345 (166,953) 423,373 190 131 109 (32) 108 The City of Port Townend owns and operates a stormwater collection system that includes roadside ditches, wedge asphalt curbs, concrete curbs, rain gardens, and stormwater facilities such as Froggy bottoms. The Streets and Collections Division of Public Works is responsible for annual maintenance which includes cleaning, street sweeping, and stormwater repairs. This includes responding to heavy rain events to manage localized flooding. Leaf control is a major proactive maintenance strategy. The stormwater system is also managed by the engineering division to implement the Western Washington Stormwater Manual for water quality improvement. 2025 Key Goals: • The Streets division continues to transition the shift of resource investment from vegetation control to street repair. Stormwater management is a key function that needs to be restored prior to street investments. The division will spend considerable time in 2025 working on restoring ditches and making small drainage improvements. City of Port Townsend Water & Sewer Operations Fund Budget Detail and Summary City of Port Townsend WATER/SEWER OPERATIONS BUDGET SUMMARY 2022 2023 2024 2024 2025 Increase/Decrease Water Sewer Op 2025 Proposed vs Actual Actual Actual Budget Proposed 2024 Budget Beginning Fund Balance 3,713,169 4,088,263 5,020,708 5,020,708 6,191,132 Revenues Taxes - - (195) - - Licenses & Permits - Intergovernmental Services - - - - - Charges for Goods & Services 7,480,449 8,295,876 8,459,493 9,110,005 9,840,000 8.0% Fines & Penalties - - - - - Miscellaneous Revenue 127,465 240,444 325,064 362,500 248,500 -31.4% Other Increases 60,000 - - - - Other Financing Sources (inc. Transfers In) 1,855,334 1,511,430 1,139,518 1,243,581 37,500 -97.0% Total Revenue 9,523,247 10,047,750 9,923,881 10,716,086 10,126,000 -5.5% Expenditures Salaries & Wages & Benefits Supplies Services Capital Outlays Debt Service - Principal Debt Service - Interest Other Financing Uses (inc. Transfers Out) Total Expenditure Net Change in Fund Balance Ending Fund Balance 60 Days of Operating Expenses Water Sewer Fund - Expenditures by Department Utility Billing Water Disribution Water Quality / WTF Wastewater Treatment Wastewater Collection Biosolids Non -Departmental (inc. Transfers Out) Total Expenditures 2,331,251 2,412,171 2,176,836 3,086,303 3,253,352 523,532 525,865 368,615 624,452 659,245 3,958,482 4,389,673 3,825,249 5,167,530 4,833,976 46,109 84,441 54,719 487,727 512,320 1,246,889 1,181,901 1,093,906 1,130,653 1,122,053 164,920 154,262 125,195 153,613 148,604 876,970 366,991 1,108,936 1,359,309 3,168,200 9,148,153 9,115,304 8,753,457 12,009,587 13,697,750 375,094 932,446 1,170,424 (1,293,501) (3,571,750) 4,088,263 5,020,708 6,191,132 3,727,207 2,619,382 163 201 258 113 70 42 597,390 687,878 870,530 804,864 768,175 403 3,279,323 3,156,287 3,286,063 3,901,190 4,365,384 404 2,147,383 2,140,141 1,996,651 3,008,112 2,999,675 405 1,516,143 1,643,775 1,358,109 2,475,839 2,711,915 406 1,088,510 923,609 739,255 1,088,776 2,069,565 407 519,405 563,615 502,848 730,807 783,036 000 - - - - - 9,148,153 9,115,304 8,753,457 12,009,587 13,697,750 5.4% 5.6% -6.5% 5.0% -0.8% -3.3% 133.1 14.1 % 176.1 % -11.8% 32.8% 50.2% 99.7% 180.0% 55.7% 56.5% Water & Sewer Operations The water/sewer operating fund shows a decrease in fund balance due to transfers out to support Water and Sewer Capital (Fund 415). In 2024 the City Council adopted new sewer rates that look forward to funding the needed repairs in the sewer collection and treatment systems in the city. Goal Statement: The City of Port Townsend water and sewer (wastewater) fund is a combined fund although expenditures and revenues are tracked separately between water and sewer. The goal of these enterprise utilities is to work as a business unit to ensure that expenses do not exceed revenues while providing reliable utility services as an essential public service. 2025 Key Goal: • The water division of public works will seek to implement the new cross connection program adopted by the City Council in 2022 as required by the Washington Administrative Code. • The water division will continue replacing aging pipelines to make the system more reliable and minimize distribution system leakage. • The water division will begin to implement the first year of five to replace all of the water meters across the city. • The water division will continue to implement the Water Supply Agreement with the Port Townsend Paper Mill and facilitate capital improvements into the Olympic Gravity Water System • The wastewater division anticipates updating the NPDES Permit for the Wastewater Treatment Plant Discharge to the Salish Sea. • The wastewater division will be implementing new sewer rates and begin to implement capital improvements identified in the sewer plan. • The collections division will implement a rigorous sewer inspection program to prioritize pipe rehabilitation investments. • The wastewater division will begin implementing a number of key capital projects resulting from the General Sewer Plan • The wastewater division will work with the County on expanding septage handling at the Compost Facility 2025 Work Plan: • The work plan for the water division is mostly focused on capital projects, • The water division has several capital projects such as the OGWS pipeline assessment, Lords Lake East Dam stability improvement design, 1 MG standpipe coating design, cathodic protection of the OGWS, landslide mitigation and pipeline support at Snow Creek, and rehabilitation of the control valve structure at the Big Quilcene Diversion. • The water division will begin the process of system wide meter replacement. • The work plan for the wastewater division is focused on capital projects such as the outfall, Water Street sewer replacement, Mill Road Lift Station, and Wastewater Treatment Plant rehabilitation projects. , . • The wastewater division will begin the process of purchasing additional land near the WWTP. • The Wastewater Treatment operators will coordinate plant operations around treatment plant projects. This adds additional challenges to operations. • Both the water and wastewater division will evaluate replacement and/or rehabilitation of pipe associated with street repair projects such that pipes are evaluated before paving. • Capital improvements on the stormwater system are also necessary. Much of the stormwater infrastructure is lacking or in a state of disrepair. Lawrence Street stormwater is piped into the Sanitary Sewer System and thus a new pipeline is needed in Lawrence Street. The city received a loan/grant to design this project. • The new stormwater rates provide an urban forestry fee. These fees will help plant and replace trees to enhance mitigation measures of the effects of impervious surface. 2025 Work Plan: • Staff will complete the 60% design for the Lawrence Street stormwater system project. • The stormwater improvements associated with the banked capacity street repairs were initiated in 2023 and will be completed in 2025. • Staff will support the installation of rain gardens by community members. City of Port Townsend STORMWATER CAPITAL BUDGET SUMMARY 2022 2023 2024 2024 2025 Increase/Decrease Stormwater CIP Actual Actual Actual Budget Proposed 2025 Proposed vs 2024 Budget Beginning Fund Balance 580 26,773 197,064 197,064 193,743 Revenues Taxes - - - - - Licenses & Permits Intergovernmental Services Charges for Goods & Services Fines & Penalties - Miscellaneous Revenue 351 77 67 Otherincreases - - - - - Other Financing Sources (inc. Transfers In) 102,836 200,000 260,000 598,655 90,000 -85.0% Total Revenue 103,187 200,077 260,067 598,655 90,000 -85.0% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - - Services 22,185 29,510 - 10,000 3,389 -66.1% Capital Outlays 54,809 276 47,711 598,665 90,000 -85.0% Debt Service - Principal - - - - - Debt Service - Interest - Other Financing Uses (inc. Transfers Out) - - 215,677 - - Total Expenditure 76,994 29,786 263,388 608,665 93,389 -84.7% Net Change in Fund Balance 26,194 170,291 (3,321) (10,010) (3,389) -66.1% Ending Fund Balance 26,773 197,064 193,743 190,355 Sufficient to Meet Obligations City of Port Townsend WATER SEWER CAPITAL BUDGET SUMMARY 2022 2023 2024 2024 2025 Increase/Decrease Water Sewer CIP Actual Actual Actual Budget Proposed 2025 Proposed vs 2024 Budget Beginning Fund Balance 74,398 91,829 26,854 26,854 127,414 Revenues Taxes - - - - - Licenses & Permits - - - - Intergovernmental Services 72,405 4,302 5,000 1,920,000 38300.0% Charges for Goods & Services - - - - Fines & Penalties - - - - Miscellaneous Revenue 1,972 82 107 4,314,900 4,284,310 -0.7% Other Increases 62,715 - - - - Other Financing Sources (inc. Transfers In) 1,606,515 989,898 1,505,194 2,975,315 6,306,400 112.0% Total Revenue 1,671,203 1,062,385 1,509,603 7,295,215 12,510,710 71.5% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - - Services 24,895 17,917 14,931 17,917 - -100.0% Capital Outlays 1,624,816 1,109,442 1,394,112 7,581,298 12,541,313 65.4% Debt Service - Principal - - - - - Debt Service - Interest - Retainage Disbursements 4,061 Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 1,653,772 1,127,359 1,409,043 7,599,215 12,541,313 65.0% Net Change in Fund Balance 17,430 (64,975) 100,560 (304,000) (30,603) -89.9% Ending Fund Balance 91,829 26,854 127,414 96,811 Sufficient to Meet Obligations City of Port Townsend Olympic Gravity Water System (OGWS) BUDGET SUMMARY 2022 2023 2024 2024 2025 IncreaselDecrease Olympic Gravity Water System 2025 Proposed vs Actual Actual Actual Budget Proposed 2024 Budget Beginning Fund Balance 545,056 1,837,082 5,710,763 5,710,763 8,979,537 Revenues Taxes - - - - - Licenses & Permits - Intergovernmental Services - - - 86,900 - -100.0 % Charges for Goods & Services 2,464,976 4,733,337 4,115,082 5,043,382 4,900,000 -2.8% Fines & Penalties - - - - - Miscellaneous Revenue 130 60,997 61,831 105,000 75,000 -28.6% Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - - - Total Revenue 2,465,106 4,794,334 4,176,913 5,235,282 4,975,000 -5.0% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - - - Services 628,024 902,755 534,755 1,175,645 13,134 -98.9% Capital Outlays - - - - - Debt Service - Principal Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out)""" 545,056 17,898 373,383 890,100 1,626,000 82.7% Total Expenditure 1,173,080 920,653 908,138 2,065,745 1,639,134 -20.7% Net Change in Fund Balance 1,292,026 3,873,681 3,268,774 3,169,537 3,335,866 5.2% Ending Fund Balance 1,837,082 5,710,763 8,979,537 8,880,300 12,315,403 City of Port Townsend GOLF COURSE FUND BUDGET SUMMARY 2022 2023 2024 2024 2025 Increase/Decrease Golf Course Actual Actual Actual Budget Proposed 2025 Proposed vs 2024 Budget Beginning Fund Balance 5,484 2,500 2,151 2,151 7,776 Revenues Taxes - - - - - Licenses & Permits Intergovernmental Services Charges for Goods & Services Fines & Penalties - - - - Miscellaneous Revenue 8,041 10,376 3,899 16,000 -100.0% Otherincreases - - - - - Other Financing Sources (inc. Transfers In) - 5,000 11,000 5,000 31,000 181.8% Total Revenue 8,041 15,376 14,899 21,000 31,000 108.1% Expenditures Salaries & Wages & Benefits - - - - - Supplies 177 - - 16,000 - Services 10,849 15,724 9,274 5,000 31,000 234.3% Capital Outlays - - - - - Debt Service - Principal Debt Service - Interest Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 11,026 15,724 9,274 21,000 31,000 234.3% Net Change in Fund Balance (2,984) (349) 5,625 -100.0% Ending Fund Balance 2,500 2,151 7,776 2,151 7,776 Sufficient to Meet Obligations City of Port Townsend Equipment Rental & Replacement Fund Budget Detail and Summary Fleet Rental & Replacement City of Port Townsend FLEET REPLACEMENT FUND BUDGET SUMMARY Fleet Replacement 2022 Actual 2023 Actual 2024 Actual 2024 Budget 2025 Proposed Increase/Decrease 2025 Proposed vs 2024 Budget Beginning Fund Balance 1,860,903 2,133,591 2,187,918 2,187,918 2,592,390 Revenues Taxes - - - - - Licenses & Permits Intergovernmental Services - - - - Charges for Goods & Services 253,867 281,836 333,428 400,113 -100.0 % Fines & Penalties - - - - - Miscellaneous Revenue 19,627 48,063 67,149 35,000 65,000 -3.2 % Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - 490,000 490,000 490,000 0.0 % Total Revenue 273,494 329,899 890,577 925,113 555,000 -37.7% Expenditures Salaries & Wages & Benefits - - - - - Supplies Services - - - - - Capital Outlays 806 275,572 486,105 535,000 1,143,000 135.1% Debt Service - Principal - - - - - Debt Service - Interest Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 806 275,572 486,105 535,000 1,143,000 135.1% Net Change in Fund Balance 272,688 54,327 404,472 390,113 (588,000) -245.4% Ending Fund Balance 2,133,591 2,187,918 2,592,390 2,578,031 2,004,390 Sufficient to Meet Obligations P Goal Statement: The City of Port Townsend Fleet division is a Public Works internal service function. The division focuses on repair and maintenance of the City's fleet. The division also purchase replacement vehicles for those departments contributing to the replacement funds. A key goal of the division is to restore general fund replacement funding of vehicles. The Police Department, Community Services Department, and other administration departments currently do not pay for replacement. The division seeks to provide reliable internal service to sustain an aging fleet. 2025 Key Goal: • Purchase of a new Elgin Street Sweeper, loader for the compost facility, backhoe for water distribution, three pickup trucks and adding one hybrid motor pool car. Additional purchases may be necessary depending on budget availability for multiple other supporting equipment. • Subject to funding, purchase of a small equipment trailer and tac trailer for pavement repairs. 2025 Work Plan: • Work with the General Fund divisions and the Community Services Department options for development of a sustainable funding program for vehicle replacement. Currently, the budget proposals include making sure that any new vehicles are placed on replacement. The budget also includes infusion 2 of 5 to return general fund vehicles to the replacement program for fiscal sustainability. • Continue to evaluate implementation of electric vehicle conversion. Information Technology (IT) Rental & Replacement Cityof Port Townsend IT REPLACEMENT FUND BUDGET SUMMARY IT ERR 2022 Actual 2023 Actual 2024 Actual 2024 Budget 2025 Proposed Increase/Decrease 2025 Proposed vs 2024 Budget Beginning Fund Balance 40,885 57,985 92,207 92,207 103,617 Revenues Taxes - - - - - Licenses & Permits Intergovernmental Services - - - - - Charges for Goods & Services 67,167 86,500 38,833 46,600 46,050 18.6% Fines & Penalties - - - - - Miscellaneous Revenue 328 71 22 -100.0% Other Increases - Other Financing Sources (inc. Transfers In) - - - - - Total Revenue 67,495 ® 86,571 38,855 46,600 46,050 18.5% Expenditures Salaries & Wages & Benefits - - - - - Supplies Services - - - - - CapitalOutlays 50,395 52,349 27,445 33,350 35,250 28.4% Debt Service - Principal - - - - - Debt Service - Interest Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 50,395 52,349 27,445 33,350 35,250 28.4% Net Change in Fund Balance 17,100 34,222 11,410 13,250 10,800 -5.3 % Ending Fund Balance 57,985 92,207 103,617 105,457 114,417 Sufficient to Meet Obligations Goal Statement: The City of Port Townsend Information Technology (IT) division is a Finance and Technology Services internal service function. The division focuses on the repair and maintenance of the City's technology infrastructure. The division replaces technology equipment across all City departments based on equipment age and functional needs. 2025 Key Goal: • Support departments at all levels with technology needs through computer hardware, software programs and technology -related projects. • Achieving Information Technology goals is reliant on maintaining two full-time employees for network and information technology support. 2025 Work Plan: • Improve IT infrastructure, robustness, and cybersecurity. • Support the City's preparedness for disasters, including support of a continuity of operations plan. City of Port Townsend Public Works Administration Fund Budget Detail and Summary City of Port Townsend PUBLIC WORKS ADMINISTRATION BUDGET SUMMARY PW Admin (Internal Service Fund) 2022 Actual 2023 Actual 2024 Actual 2024 Budget 2025 Proposed Increase/Decreas e 2025 Proposed vs 2024 Budget Beginning Fund Balance 90,290 139,877 280,346 280,346 470,595 Revenues Taxes - - - - - Licenses & Permits Intergovernmental Services - - - - - Charges for Goods & Services 540,445 601,983 566,954 680,345 680,345 20.0% Fines & Penalties - - - - - Miscellaneous Revenue 740 90 174 7,500 1,500 761.8% Other Increases - - - - Other Financing Sources (inc. Transfers In) - - - 180,000 180,000 Total Revenue 541,185 602,073 567,128 867,845 861,845 52.0% Expenditures Salaries & Wages & Benefits 387,578 288,716 271,528 520,643 564,265 107.8°% Supplies 3,898 1,733 3,665 6,652 6,652 81.5°% Services 100,122 171,155 101,687 339,259 159,784 57.1% Capital Outlays - - - 1,000 2,500 Debt Service - Principal - Debt Service - Interest Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 491,598 461,604 376,879 867,554 733,201 94.5% Net Change in Fund Balance 49,587 140,469 190,249 291 128,644 -32.4% Ending Fund Balance 139,877 280,346 470,595 280,637 599,239 Sufficient to Meet Obligations iii i u iuiuiu Public Works Administration Goal Statement: The City of Port Townend Public Works Administration division is responsible for providing oversight and direction of the Public Works Department. The division goal is to provide support to all the divisions of public works in terms of budgeting and team development, compliance with regulations, development of partnerships, and implementation of best available science and practices subject to available resources. The division also leads large special projects and public engagement. Engineering also supports Public Works Administration with 50% of the City Engineer being funded from revenues of this division. 2025 Key Goals: • The number one goal for this division is to fill the Deputy Public Works/City Engineer position. Until this position and the empty project engineer is filled, the capacity of Public Works to take on capital and special projects is limited. • Develop GIS program as an overhead based program to support all city operations and data management. • Support the implementation of key strategic projects including supporting economic development. 2025 Work Plan: • Support director team development of management and leadership training. • Support the Planning and Community Development in housing solutions such as code updates, Cherry Street, and Evans Vista development. • Support the Periodic update of the City's Comprehensive Plan. • Support the engineering department in the update of engineering standards • Support the Administration and Finance Departments in the implementation of the Financial Sustainability Task Force Report • Support the HR Department with training and skills development program. • Support implementation of the Comprehensive Streets program, particularly associated with banked capacity projects. • Serve as support to the Parks Recreation Trails and Tree Advisory Board. • Support Planning and Community Development Department in Open Space Planning and Buildable Lands Inventory as part of the Comprehensive Plan periodic update. • Help implement capital Projects • Support implementation of the Water Supply Agreement projects and coordination. • Support the Mill Road roundabout planning and funding acquisition in partnership with WSDOT and Jefferson County. • Support Sims Way and Boatyard Expansion project in cooperation with the Port of Port Townsend. • Participate in the Solid Waste Advisory Committee as a representative of Port Townsend. • Manager the Solid Waste Collections contract • Support work with Jefferson County regarding Glen Cove UGA expansion possibilities. City of Port Townsend Street Operations Fund Budget Detail and Summary City of Port Townsend STREET FUND BUDGET SUMMARY 2022 2023 2024 2024 2025 Increase/Decrease Street Fund 2025 Proposed vs Actual Actual Actual Budget Proposed 2024 Budget Beginning Fund Balance 474,400 479,484 299,466 299,466 276,079 Revenues icenses & Permits 231 - - - - ntergovernmental Services 205,329 203,894 160,646 400,000 214,000 -46.5% harges for Goods &Services 1,056 695 672 - 750 sines & Penalties - - - - - Ascellaneous Revenue 7,164 8,326 7,397 7,500 7,500 0.0 )therIncreases - - - - - )ther Financing Sources (inc. Transfers In) 823,098 937,578 1,283,417 1,363,503 1,338,712 -1.8 rotal Revenue 1,036,877 1,150,493 1,452,133 1,771,003 1,560,962 -11.9 Salaries & Wages & Benefits 185,117 228,883 191,135 286,828 306,567 6.9 Supplies 73,981 119,536 81,099 126,928 136,185 7.3% Services 515,645 572,926 474,174 685,110 744,060 8.6% Capital Outlays 77,901 143,406 249,750 244,501 120,000 -50.9% Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) 179,150 265,759 479,362 270,843 209,150 -22.8% Total Expenditure 1,031,794 1,330,511 1,475,520 1,614,210 1,515,962 -6.1 Net Change in Fund Balance 5,084 (180,017) (23,387) 156,793 45,000 Ending Fund Balance 479,484 299,466 276,079 456,259 321,079 Fund Bal. 2-3 % of Expenditures 46.5% 22.5% 18.7% 28.3% 21.2%�� Street Operations Goal Statement: The City of Port Townsend Streets and Collections Division of Public Works has the primary responsibility of maintaining city streets, the wastewater collections system, and the stormwater collection system. Maintenance includes street repair, vegetation control, garbage management, special projects in right of way, event support, sidewalk repairs, annual cleaning of sewer and stormwater pipes, catch basin and maintenance holes maintenance, sweeping, and snow plowing. 2025 Key Goal: • A primary goal of this division is to continue to increase investment on drainage and street repairs. This will involve drainage control work and moving to hot mix asphalt patching compared to cold mix pothole repairs. This transition was successful in 2023 with investment of banked capacity (property tax) into a number of City streets that have fallen into disrepair. • Another primary goal is to implement the General Sewer Plan with methodic inspection and to begin to rehabilitate the aging sewer collection system. 2025 Work Plan: • The division will continue complete the 2022 and 2023 banked capacity road restoration projects.. • Implement the Comprehensive Streets Program through investment of new revenue associated with the Transportation Benefit District. • Perform annual hot spot pavement repairs. • Support an arterial street chip seal preservation project. • Support overlay of Tyler Street • Begin systematic sewer inspection program with new video camera documentation equipment.. • The street division works closely with the engineering division to implement a number of projects throughout the year. Please refer to the engineering writeup for more details. • Continue to implement a newly developed city-wide ditch maintenance program. This program strives to correct drainage deficiencies ahead of paving project to prevent premature deterioration of pavement due to saturation of the underlying soils. City of Port Townsend TRANSPORTATION BENEFIT FUND BUDGET SUMMARY 2022 2023 2024 2024 2025 Increase/Decrease Transportation Benefit Actual Actual Actual Budget Proposed 2025 Proposed vs 2024 Budget Beginning Fund Balance 12,859 Revenues Taxes 528,859 626,500 1,200,000 91.5% Licenses & Permits - - - Intergovernmental Services Charges for Goods & Services Fines & Penalties Miscellaneous Revenue Other Increases Other Financing Sources (inc. Transfers In) - - - Total Revenue 528,859 626,500 1,200,000 91.5% Expenditures Salaries & Wages & Benefits - - - Supplies Services Capital Outlays Debt Service - Principal Debt Service - Interest - - - Other Financing Uses (inc. Transfers Out) 516,000 626,500 621,000 -0.9% Total Expenditure 516,000 626,500 621,000 -0.9% Net Change in Fund Balance 12,859 579,000 Ending Fund Balance 12,859 591,859 Fund Bal. 2-3 % of Expenditures 0.0% 0.0% 2.5% 0.0% 95.3% 1 City of Port Townsend Engineering Fund Budget Detail and Summary City of Port Townsend ENGINEERING FUND BUDGET SUMMARY Engineering Internal Service Fund 2022 Actual 2023 Actual 2024 Actual 2024 Budget 2025 Proposed Increase/Decrease 2025 Proposed vs 2024 Budget Beginning Fund Balance 56,459 71,900 111,027 111,027 236,065 Revenues Taxes - - - - - Licenses & Permits Intergovernmental Services - - - - - Charges for Goods & Services 752,563 973,767 1,042,050 1,879,091 2,298,982 120.6% Fines & Penalties - - - - - Miscellaneous Revenue 267 104 281 -100.0% Other Increases - - - Other Financing Sources (inc. Transfers In) - 8,981 - - - Total Revenue 752,830 982,852 1,042,331 1,879,091 2,298,982 120.6% Expenditures Salaries & Wages & Benefits 557,838 740,370 768,291 987,964 1,114,548 45.1 % Supplies 4,490 3,342 3,487 10,799 13,299 281.4% Services 159,967 171,548 142,460 207,101 269,509 89.2% Capital Outlays 15,094 28,465 3,055 9,000 53,000 1634.9% Debt Service - Principal - - - - - Debt Service - Interest Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 737,389 943,725 917,293 1,214,864 1,450,356 58.1% Net Change in Fund Balance 15,441 39,127 125,038 664,227 848,626 578.7% Ending Fund Balance 71,900 111,027 236,065 775,254 1,084,691 Sufficient to Meet Obligations ' ' Engineerinq Goal Statement: The City of Port Townsend engineering division is an enterprise fund within the Public Works Department. This means that the division bills other funds for every hour worked. As such, the revenues in the budget often are shown to exceed expenses indicating that there is more work than can be performed by the division staff. In actuality, the division struggles to cover costs and the fund balance is near zero making it challenging for the division to take on tasks unless there is billing authority granted from other departments. The underlying goal of the division is to provide technical support for management of existing assets and the development of new public infrastructure. Engineering is a key division providing support to Public Works administration. This support comes in the form of internal service to other departments such as GIS mapping, software support, development review, contracting, bidding, purchasing, code enforcement, planning for future infrastructure and technical support to operations, planning for future infrastructure. External services are also a key element of engineering's responsibilities such as right of way management, permitting, franchise utility management, traffic analysis, and environmental compliance. Design of capital projects makes up over half of the engineering division's work which includes design and development of new infrastructure as well as capital repairs replacements, grant procurement, and capital funding program management. 2025 Key Goals: • Become fully staffed if not accomplished in 2024. • Support other divisions such as the Planning and Community Development Department in development review and comprehensive planning. • Engineering provides administration and design services in the deliver Capital Projects. Many projects are behind schedule. New staffing will help get projects completed. • Support Public Works Division with operations • Support traffic safety, traffic calming, and street right of way management. 2025 Work Plan: • Support the parking meter pilot project installation in Downtown. • Deliver a number of transportation, water, sewer, and stormwater capital projects. (See capital budgets). • Improved development review and infrastructure inspection in coordination with the Planning and Community Development Department. • Support the Planning and Community Development Department during the Comprehensive Plan update. • Lead an update to the Non -motorized Plan. • Perform an arterial street cohesive investment strategy. • Update of engineering standards and related codes. • Develop a streets master circulation plan. • Continued development of a city-wide infrastructure extension plan for 2025 code updates. • Move to a digital office and records management through training and use of digital resources in coordination with the public records officer. City of Port Townsend SYSTEM DEVELOPMENT CHARGES BUDGET SUMMARY 2022 2023 2024 2024 2025 Increase/Decrease SDCs 2025 Proposed vs Actual Actual Actual Budget Proposed 2024 Budget Beginning Fund Balance 1,463,326 2,156,674 2,465,341 2,465,341 2,467,917 Revenues Taxes - - - - - Licenses & Permits Intergovernmental Services - - - - - Charges for Goods & Services 781,031 739,315 309,222 745,000 300,000 -3.0% Fines & Penalties - - - - - Miscellaneous Revenue 12,317 53,022 92,951 40,000 85,000 -8.6% Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - - - - Total Revenue 793,348 792,337 402,173 785,000 385,000 -4.3% Expenditures Salaries & Wages & Benefits - - - - - Supplies Services Capital Outlays Debt Service - Principal Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) 100,000 483,669 399,598 705,906 1,645,950 311.9% Total Expenditure 100,000 483,669 399,598 705,906 1,645,950 311.9% Net Change in Fund Balance 693,348 308,667 2,576 79,094 (1,260,950) -49055.8% Ending Fund Balance 2,156,674 2,465,341 2,467,917 2,544,435 1,206,967 Sufficient to Meet Obligations �� �� City of Port Townsend UNEMPLOYMENT RESERVE FUND BUDGET SUMMARY Unemployment Internal 2022 2023 2024 2024 2025 Increase/Decrease 2025 Proposed vs Service Fund Actual Actual Actual Budget Proposed 2024 Budget Beginning Fund Balance 22,232 22,346 22,339 22,339 15,342 Revenues Taxes - - - - - Licenses & Permits Intergovernmental Services Charges for Goods & Services Fines & Penalties - Miscellaneous Revenue 116 76 61 -100.0% Other Increases - - - Other Financing Sources (inc. Transfers In) 4,389 - 25,000 10,000 Total Revenue 4,505 76 61 25,000 10,000 16207.9% Expenditures Salaries & Wages & Benefits 4,391 83 7,058 25,000 10,000 41.7% Supplies - - - - Services Capital Outlays Debt Service - Principal Debt Service - Interest Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 4,391 83 7,058 25,000 10,000 41.7% Net Change in Fund Balance 114 (7) (6,997) -100.0% Ending Fund Balance 22,346 22,339 15,342 22,339 15,342 Sufficient to Meet Obligations City of Port Townsend FIREMEN'S PENSION FUND BUDGET SUMMARY LEOFF 1 2022 2023 2024 2024 2025 Increase/Decrease Fiduciary Fund Actual Actual Actual Budget Proposed 2025 Proposed vs 2024 Budget Beginning Fund Balance 294,571 313,510 341,573 341,573 372,121 Revenues Taxes - - - - - Licenses & Permits Intergovernmental Services Charges for Goods & Services Fines & Penalties - - - Miscellaneous Revenue 7,724 15,321 8,500 -100.0% Other Increases - - - - - Other Financing Sources (inc. Transfers In) 34,235 34,235 22,917 27,500 27,500 20.0% Total Revenue 34,235 41,959 38,238 36,000 27,500 -28.1% Expenditures Salaries & Wages & Benefits 13,936 12,551 6,556 25,000 - -100.0% Supplies - - - - - Services 1,360 1,346 1,133 1,360 1,374 21.3% Capital Outlays - - - - - Debt Service - Principal Debt Service - Interest Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 15,296 13,897 7,690 26,360 1,374 -82.1% Net Change in Fund Balance 18,939 28,063 30,548 9,640 26,126 -14.5% Ending Fund Balance 313,510 341,573 372,121 351,213 398,247 Sufficient to Meet Obligations CITY OF PORT TOWNSEND, WASHINGTON STAFFING AND COMPENSATION SUMMARY The City of Port Townsend employs approximately 114 individuals. City employees are made up of four groups: • General Government Bargaining Unit - employees who are members of the Local Union No. 589 of the International Brotherhood of Teamsters • Police Department Bargaining Unit - employees who are members of the Local Union No. 589 of the International Brotherhood of Teamsters • Non -represented management, and "confidential" employees who do not belong to any bargaining group • Part-time and temporary/seasonal employees Compensation and benefits for the two Teamsters bargaining units are negotiated and certain wage changes, pay scales and benefit packages are administered based on the contractual agreements. The Police Collective Bargaining Unit contract was ratified December 31, 2023, and will expire December 31, 2026. 15.0 full-time officers and 1 provisional officer were included in the budget. Recruitment for the police department has been effective, the department anticipates full staffing in 2025. Retaining officers will continue to be a priority for Pori Townsend. 2025 wage rates for police are contracted to increase 3%. Due to current labor market conditions and higher than normal inflationary times, salary increases for staff continue to be above average. All known increases are included in the budget estimates for 2025. The General Government Collective Bargaining Unit agreement expires December 31, 2024. Negotiations are currently underway. A budget supplement will be submitted for Council approval in 2025 when negotiations have been completed. Changes to Council members' compensation were considered by an independent Salary Commission during the fall of 2021. Council compensation had not been changed since 2007. Five commission members were appointed to determine whether and what changes were necessary to monthly salaries for these elected officials. The commissioners considered multiple points of data including cost of living changes during the period of 2007-2021, salaries for officials in comparable communities, time required to carry out the functions of the office, and salaries received by members of other governing boards in Jefferson County. Individual interviews with Council members were conducted by the commission to better assess time commitment to the position. The commission's binding decision on compensation was presented to the City Clerk on November 9, 2021. Based on the commission's determination, compensation levels for 2024-5 are as follows: • Effective January 1, 2025 — the Mayor's monthly salary will be $1,075 • Effective January 1, 2025 — each Council member's monthly salary will be $725 Council salaries will increase in 2026. In 2028 a subsequent Salary Commission consideration is statutorily required. The binding decision can be challenged by referendum within 30 days. The process is defined in Port Townsend Municipal Code 2.90 Salary Commission. City Council members are eligible to enroll in health benefits as part of the elected position group. Coverage is dependent on group participation, with minimum requirements for the group plan. The 2025 budget reflects a total of 113.6 full-time equivalents (FTEs) excluding Council members and seasonal staff. The FTE count reflects an increase of 4 positions compared to the 2024 budgeted positions. The Community Services Director will replace the Library Director in the 2025 budget. Additions include: • Community Services Director • Arts & Culture Coordinator • Water Maintenance Worker • Streets Operator I • Parks Maintenance Worker Despite these additions, service requests from our community often exceed our staff's capacity to respond; setting service level expectations and matching the City's ability to fund these service levels is a key focus area of the report delivered by the Financial Sustainability Task Force. Details on the assumptions used in preparation of the 2025 salary and benefit budget, including details regarding the proposed staff reductions, are provided below. 2025 Budget Assumptions for General Government Agreement The General Government Agreement covers Public Works, Planning and Community Development, Finance, Police Administration, and some library employees. The General Government Collective Bargaining Unit contract expires December 31, 2024. Negotiations are in progress for a new contract. The General Government Agreement with the Teamsters defines the pay scales, seniority rates and annual inflationary adjustments to salaries for this group of employees. 2025 budget assumptions do not include a COLA increase; any wage rate increases will be determined when a new agreement is ratified, and the costs will be brought back to Council in a 2025 budget supplemental. Full-time employees receive a full benefit package that includes health, life, dental and retirement benefits. The current contract calls for employees in this group to contribute 10% of the total cost of the medical benefit costs for themselves and any covered dependents, which is how the City budgeted these costs. Teamster benefit rates are budgeted to increase 4.0% in 2025. 2025 Budget Assumptions for Police Agreement The Police Agreement with the Teamsters defines the pay scales, compensated hours, seniority rates and cost of living adjustments to salaries for police officers and sergeants. The Police Collective Bargaining Unit contract expires December 31, 2026. The current contract was ratified on December 31, 2023. 2025 budget assumptions include a contracted hourly rate increase of 3%. Full-time employees receive a full benefit package that includes health, life, dental and retirement benefits. Employees contribute 10% of the medical benefit costs for themselves and any covered dependents. Teamster benefit rates are budgeted to increase 4.0% in 2025. 2025 Budget Assumptions for Non -represented Employees The non -represented employee group is made up of management and professional level staff, non -union part-time library staff, and confidential/administrative staff. This group has no formal contractual agreement and benefit, and wage increases have historically been dictated by the performance and availability of budget dollars. Full-time employees receive a full benefit package through AWC that includes health, life, dental and retirement benefits. Employees contribute 15% of the total cost of these benefits for themselves and any covered dependents. Medical benefit rates are forecasted to increase 7.3% which is partially offset by a 2.0% discount for WellCity designation. Employees may choose from two dental plans. The dental premiums are budgeted for no increases in 2025. There are no increases forecasted for vision benefit rates. Due to the increasingly competitive recruitment and retention environment of the past few years, a comprehensive review of both represented and non -represented was completed in 2023. Based on the results of the market study, a new grade -based system has been put in place for non -represented employees. In addition, the compensation policy has been updated and incorporated into the City's personnel policies. The represented positions included in the salary were reviewed in 2024. The 2025 budget does not include a cost of living wage adjustment for non -represented employees, this will be brought back to council as a supplemental after the General Government Agreement has been ratified. Minimum Wage - For 2025, the minimum wage will increase $0.38 or 2.35% to $16.66 per hour. This increase impacts library and seasonal wage rates. Additionally, the increase begins to impact higher level position through wage compression. Wage compression occurs when pay adjustments regardless of experience, skills or seniority increase the base wage and bring those wages closer to the wages of more senior, experienced, skilled positions. The Director of People & Performance will continue to monitor the impact of minimum wage adjustments on all City positions. Recruiting Staff, Succession Planning and Best Practices The City continues to strive to foster a healthy organization through investing in leadership development and training and adopting and implementing best employment practices. In 2022, the City Manager restructured the Human Resources Department by hiring a Director of People & Performance. This position reports directly to the City Manager and is a key member of the City's leadership team. This position is supported by a full-time Human Resource Generalist, a part-time Human Resource Assistant as well as support from the Payroll Administrator. The Director will continue to focus on recruitment, retention, and development of City staff. Development of career pathing and City-wide training opportunities for growth will enhance the City's ability to retain valued employees and set standards for a high-performance culture. The 2025 budget adds resources for staff training and education. A total of 113.6 positions are included in the budget for 2025, not including Council members, seasonal workers, volunteer hours or accrued leave payouts. Seasonal workers consist of 2.0 FTEs or 4 short-term employees to assist with Streets and Parks operations. Volunteer hours amount to approximately 3.36 FTEs and assist with police operations, library operations, and parks maintenance. A chart below shows the trend by department of authorized staffing over the last five years Previous years totals are reflective of the council adopted budget for each year, numbers may change after adoption due to mid -year Council authorized positions but are included for rough comparison. CITY OF PORT TOWNSEND -AUTHORIZED POSITIONS Department/Division 2021 2022 2023 2024 2025 2025 Increase General Government City Manager 1.0 1.0 1.0 1.0 1.0 0.00 Ci ty Afto mey 2.0 2.0 2.0 2.0 2.0 0.00 Communications & Marketing 1.0 1.0 1.0 0.00 Planning & Community Development 8.0 8.5 9.5 10.0 11.0 0.00 Finance, UB, PRR 9.0 9.01 9.0 9.8 11.01 0.00 Police Admin & Operations 18.6 20.1 22.1 22.3 20.0 0.00 City Clerk/Human Resources 3.6 4.0 5.0 4.8 3.5 0.00 Street 1.7 1.7 1.7 1.9 2.7 1.00 ERR - Fleet & IT 3.0 3.0 3. 4.0 4.0 0.00 Total General Government 46.91 49.3 54.3 56.81 56.2 1.00 Community Services Comm Svcs Administration 0.0 0.0 0.0 0.0 0.7 0.67 Arts & Culture 0.0 0.0 0.0 0.0 1.0 1.00 Facilities 3.5 3.5 3.5 5.5 4.91 0.00 Parks Maintenance & Recreation 3.5 4.2 4.2 4.5 5.5 1.00 Pool 4.0 0.0 0.0 0.0 0.0 0.00 Library 8.9 8.9 8.9 8.9 8.0 -0.67 Total Community Services 19.9 16.6 16.6 18.9 20.0 2.00 Public Works & Utilities (excl UB) Public Works Administration 2.5 2.5 2.5 3.5 2.5 0.0 Public Works Engineering 5.9 6.5 6.5 6.5 8.5 0.0 Uti Ili ti es Water Distribution 5.01 5.0 5.0 5.01 7.8 1.0 Water Quality & Resource 4.0 4.0 4.0 4.0 3.5 0.0 Wastewater Collection 2.2 2.2 2.2 2.6 3.4 0.0 Wastewater Treatment 3.5 3.5 3.5 5.0 4.4 0.0 Biosolids 2.5 2.5 2.5 3.0 3.0 0.0 Stormwater 3.1 3.1 3.1 3.8 4.3 0.0 Total Public Works & Utilities 28.7 29.3 29.3 33.4 37.3 1.00 TOTAL CITY FTES 95.5 95.2 100.2 109.1 113.61 4.00 Percentage Change 4.2% Positions not currently counted as FTES 2021 1 2022 1 2023 2024 1 2025 Mayor/Council 1 7.01 7.01 7.01 7.0 7.0 * Total City FTES does not include leave payouts or seasonal positions salaries within the number of FTEs & within the budgeted salaries & benefits amounts. CITY OF PORT TOWNSEND NON -BARGAINING EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE BUDGET 2025, Salary Schedule effective January 1, 2025 Elected Officials Classification Minimum Maximum Mayor $ 12,900 $ 12,900 Councilmembers $ 8,700 $ 8,700 Non Represented Employees Range Classification Step 1 Step 9 600 City Manager $ 166,000 $ 205,917 631 City Attorney $ 146,591 $ 181,773 631 Chief of Police $ 146,591 $ 181,773 630 Public Works Director $ 139,610 $ 173,117 630 Finance and Technology Director $ 139,610 $ 173,117 629 Planning & Community Development Director $ 132,962 $ 164,873 628 Community Services Director $ 126,631 $ 157,022 628 Deputy Police Chief $ 126,631 $ 157,022 628 Deputy Public Works Director/City Engineer $ 126,631 $ 157,022 627 Deputy Public Works Director/Engineering Svcs Mgr $ 120,601 $ 149,545 627 Director of People & Performance $ 120,601 $ 149,545 627 City Engineer $ 120,601 $ 149,545 626 Assistant City Engineer $ 114,858 $ 142,424 625 Prosecuting Atty/Asst City Attorney $ 109,388 $ 135,642 625 Human Resources Manager $ 109,388 $ 135,642 625 Communications & Marketing Director $ 109,388 $ 135,642 624 Planning Manager $ 104,179 $ 129,182 624 Civil Engineer III $ 104,179 $ 129,182 624 Public Works Operations Manager- Streets $ 104,179 $ 129,182 624 PW Ops Manager - Water $ 104,179 $ 129,182 624 PW Ops Manager - WWTP $ 104,179 $ 129,182 623 Library Director $ 99,218 $ 123,031 623 Finance Manager $ 99,218 $ 123,031 623 Building Official $ 99,218 $ 123,031 623 Project Manager III $ 99,218 $ 123,031 622 Parks & Facilities Manager $ 94,494 $ 117,172 622 Communications & Marketing Manager $ 94,494 $ 117,172 622 Civil Engineer II $ 94,494 $ 117,172 622 Accounting Manager $ 94,494 $ 117,172 622 City Clerk $ 94,494 $ 117,172 621 Project Manager II $ 89,994 $ 111,593 620 Library Manager - Public & Tec Svs $ 85,709 $ 106,279 620 Library Manager - Youth Services $ 85,709 $ 106,279 620 Senior Planner $ 85,709 $ 106,279 620 Civil Engineer 1 $ 85,709 $ 106,279 620 Finance & Budget Analyst $ 85,709 $ 106,279 620 Long Range Planner (Limited Term) $ 85,709 $ 106,279 619 JProject Manager I 1 $ 81,627 $ 101,218 618 ICivil Engineer EIT 1 $ 77,740 $ 96,398 617 Public Records Officer $ 74,038 $ 91,808 617 Human Resources Specialist or Generalist $ 74,038 $ 91,808 617 Executive Assistant to City Manager $ 74,038 $ 91,808 616 Payroll and Benefits Administrator $ 70,513 $ 87,436 616 1 Deputy City Clerk $ 70,513 $ 87,436 616 Legal Assistant $ 70,513 $ 87,436 616 Legal Assistant/Deputy Clerk $ 70,513 $ 87,436 615 Executive Assistant to Chief of Police $ 67,155 $ 83,272 612 Housing Grants Coordinator $ 58,011 $ 71,934 610 INavigator (Limited Term) $ 52,618 $ 65,246 Hourly Part -Time Positions 612 Human Resources Assistant $ 58,011 $ 71,934 12 Associate Librarian Teamster $ 27.89 $ 34.58 10 Library Associate $ 25.30 $ 31.37 5 Library Assistant Teamster $ 19.82 $ 24.58 5 Library Assistant Substitute $ 19.82 3 Library Courier $ 17.98 $ 22.29 1 Library Page $ 16.31 $ 20.22 Reserve and Seasonal Positions ** Seasonals not included in Total FTE count Seasonal Workers $ 16.31 $ 20.22 Total Non -Represented Employees CITY OF PORT TOWNSEND UNCLASSIFIED EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE BUDGET 2025, Salary Schedule effective January 1, 2025 Non -Represented Classification Minimum Maximum Union/Represented Classification Minimum Maximum Total Unclassified Employees CITY OF PORT TOWNSEND UNION/REPRESENTED EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE BUDGET 2025, Salary Schedule effective January 1, 2025 Union/Represented Employees Grade Classification Minimum/hr Maximum/hr ** 31 IT Network Administrator $ 45.43 $ 51.56 29.5 Accountant $ 39.17 $ 44.45 29.3 lAssociate Planner $ 37.80 $ 45.73 29.3 GIS III $ 37.80 $ 45.73 29 Crew Chief $ 37.08 $ 42.12 25 GIS Coordinator $ 36.40 $ 41.38 25 IT Technician $ 36.40 $ 41.38 23 Building Inspector $ 35.54 $ 40.37 23 Code Compliance Officer $ 35.54 $ 40.37 23 Public Works Inspector $ 35.54 $ 40.37 23 Crew Chief Apprentice $ 35.54 $ 40.37 23 GIS Analyst II $ 35.54 $ 40.37 21 Maintenance Worker III (Lead) $ 34.49 $ 39.18 21 Fleet Technician III (Lead) $ 34.49 $ 39.18 21 Wastewater Treatment/Compost Operator III (Lead) $ 34.49 $ 39.18 21 Electrician $ 34.49 $ 39.18 21 Arts & Culture Coordinator $ 34.49 $ 39.18 19 Police Records Lead $ 34.49 $ 39.18 19 JAssistant Planner $ 33.93 $ 38.53 19 Finance Specialist $ 33.93 $ 38.53 19 Land Use Specialist $ 33.93 $ 38.53 19 Project Accounting Specialist $ 33.93 $ 38.53 19 Purchasing/Contracts Specialist $ 33.93 $ 38.53 17 Mechanic $ 32.94 $ 37.42 15 Maintenance Worker II $ 32.21 $ 36.44 15 Fleet Technician II $ 32.21 $ 36.44 15 Wastewater Treatment/Compost Operator II $ 32.21 $ 36.44 13 Finance Tech III $ 29.04 $ 32.97 13 Police Clerk $ 29.04 $ 32.97 13 Public Works/Engineering Support Specialist III $ 29.04 $ 32.97 13 Permit Technician III $ 29.04 $ 32.97 11 Parks, Rec & Comm Services Admin Support Spec $ 26.97 $ 30.53 11 Public Experience Liaison $ 26.97 $ 30.53 11 Utility Billing / Collection Specialist $ 26.97 $ 30.53 11 Permit Technician II $ 26.97 $ 30.53 11 GIS 1 $ 26.97 $ 30.53 9 Community Services Officer $ 26.48 $ 30.28 9 Finance Tech II $ 26.48 $ 30.28 9 Maintenance Worker 1 $ 26.48 $ 30.28 9 Fleet Technician 1 $ 26.48 $ 30.28 9 Wastewater Treatment/Compost Operator 1 $ 26.48 $ 30.28 9 Permit Technician 1 $ 26.48 $ 30.28 9 Public Works/Engineering Support Specialist II $ 26.48 $ 30.28 7 Maintenance Worker Apprentice $ 25.61 $ 29.09 7 Fleet Technician Apprentice $ 25.61 $ 29.09 7 Wastewater Treatment/Compost Operator Apprentice $ 25.61 $ 29.09 7 GIS Apprentice $ 25.61 $ 29.09 7 Administrative Assistant $ 25.61 $ 29.09 7 Facilities Custodian $ 25.61 $ 29.09 7 Public Works Administrative Assistant $ 25.61 $ 29.09 Police Officer $ 37.79 $ 43.37 Sergeant $ 48.58 $ 53.14 Total Union/Represented Employees .* max pay does not include longevity or other premiums as may be applicable TOTAL CITY POSITIONS (Excluding Elected Officials, Seasonals & Reserve Officers) Debt Capacity Based on Prior Year Assessed Value Amount at End of Year Prior Year Assessed Property Value General Oblication Debt Capicity ( up to 7.5% ) General Purpose Debt Limit (2.5%) NonVoted Debt Limit 1.5% (councilmanic) Voted Debt Limit 1.0% Debt Limit 2.5% 2021 2022 2023 2024 Actuals Actuals Actuals Actual 2,011,668,000 2,215,011,000 2,657,118,000 2,806,305,000 per Jefferson County Assessor 2025 Budget 2,990,339,293 30,175,020 33,225,165 39,856,770 42,094,575 44,855,089 20,116,680 22,150,110 26,571,180 28,063,050 29,903,393 50,291,700 55,375,275 66,427,950 70,157,625 74,758,482 Utility Purpose Debt Limit (2.5% ) "Voted Debt Limit 2.5% 50,291,700 55,375,275 66,427,950 70,157,625 74,758,482 Open Space, Park & Capital Facilities Debt Limit (2.5%) Voted Debt Limit 2.5% 50,291,700 55,375,275 66,427,950 70,157,625 74,758,482 Total General Obligation Debt Capacity 150,875,100 166,125,825 199,283,850 210,472,875 224,275,447 NonVoted General Obligation Debt Outstanding LTGO 2017A (2008 Refi) NonTaxable Bond 9,155,000 9,155,000 9,155,000 9,155,000 9,155,000 LTGO 2017B (2008 Refi) Taxable Bond 1,060,000 1,060,000 1,060,000 - - LTGO 2020 (Refi 2010 LTGO) 3,868,350 3,658,350 3,053,000 2,747,200 2,440,000 LTGO Refi 2012 (PORTOWGORE12) 1,660,000 1,135,000 585,000 - - LTGO 2018 Homeward Bound Debt Svc 808,104 781,069 752,846 723,381 692,621 NonVoted GO Debt Outstanding 16,551,454 15,789,419 14,605,846 12,625,581 12,287,621 Voted General Obligation Debt Outstanding LTGO Refi 2015 (PORTOWUTGO15) 2,640,000 2,440,000 2,235,000 2,025,000 1,805,000 Voted GO Debt Outstanding 2,640,000 2,440,000 2,235,000 2,025,000 1,805,000 Total General Obligation Debt Outstanding 19,191,454 18,229,419 16,840,846 14,650,581 14,092,621 NonVoted Debt Capacity 13,623,566 17,435,746 25,250,924 29,468,994 32,567,468 Voted Debt Capacity 120,700,080 132,900,660 159,427,080 168,378,300 179,420,358 Available GO Debt Capacity 134,323,646 150,336,406 184,678,004 197,847,294 211,987,826 idustry Bond Rating Standard GO Debt as % of Assessed Value 0.95% 0.82% 0.63% 0.52% 0.47% Industry Standard not to exceed 4.5% 90,525,060 60,255,689 119,570,310 126,283,725 134,565,26£ GO Debt per Capita 1,891 1,784 1,637 1,418 1,35' Population" 10,148 10,220 10,290 10,330 10,43, ' Per WA Stale OFM est based upon 1 % grog Revenue Debt Outstanding (excluded from General Purpose Debt limits) Amount Outstanding at End of Year 2021 2022 2023 2024 2025 Actuals Actuals Actuals Actual Budget PWTF 2002: Morgan Hill Wtr System Impr. 133,404 66,702 - - SRF 2002: DOE Wastewater Conveyance Sys 196,950 148,811 99,947 50,347 - PWTF 2012 City Lake Loan 578,947 526,316 473,684 421,053 368,421 DWSRF 2012: LT2 Water Treatment Facility 1,231,135 1,119,214 1,007,293 895,371 783,450 DWSRF 2012: LT2 Water Treatment Facility 2,472,911 2,318,354 2,163,797 2,009,240 1,854,683 PWTF 2013: 5 MG Reservoir Replacement 900,750 825,687 750,625 675,562 600,500 PWTF 2013: LT2 UV Disinfection 2,957,571 2,711,107 2,462,642 2,218,178 1,971,714 DWSRF 2015: Mandated Drinking Water Treat 3,006,684 2,829,820 2,652,956 2,476,093 2,299,229 DWSRF 2015: 5MG Reservior Replacement 3,765,189 3,543,707 3,322,225 3,100,744 2,879,262 CERB 2015: Howard St Corridor Public Infrastt 1,119,007 1,071,216 1,021,991 892,297 840,074 Rev Bond 2020: LT2 & Big Quil 1,914,980 1,834,800 1,751,300 1,667,000 1,581,800 18, 277, 528 16, 995, 734 15, 706, 460 14, 405, 885 13,17 9,133 Per amortizaton Schedule Principal outstanding (cash basis: interest not recorded until due) Debt General Obligation Debt Capacity Limited to 7.5% of Assessed Valuation (Industry standard is 4.5% of Assessed Valuation) 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 2021 Actuals General NonVotetl 22,500,000 20,000,000 17,500,000 15,000,000 12,500,000 10,000,000 7,500,000 5,000,000 2,500,000 2021 ACTUALS 20,000,000 17,500,000 15,000,000 12,500,000 10,000,000 7,500,000 5,000,000 2,500,000 2022 2023 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ORGANIZATION................................................................................................... 3 III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING...............................4 IV. FUND STRUCUTURE & FUND RESERVE GUIDELINES..................................6 V. REVENUE POLICIES...........................................................................................9 VI. OVERHEAD COST RECOVERY (COST ALLOCATION) .................................. 11 VII. GENERAL BUDGET POLICIES....................................................................... 12 VIII. FINANCIAL PLANNING POLICIES...............................................................1.414 IX. ENTERPRISE FUNDS...................................................................................... 14 X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES..................................:1.5:1:A5 XI. DEBT MANAGEMENT POLICY........................................................................ 15 XII. PURCHASING POLICY.................................................................................... 17 XIII. ELECTRONIC FUNDS TRANSFER POLICY .................................................. 17 XIV. GRANTS MANAGEMENT POLICY................................................................. 17 XVI. VACANCY IIRAIIIf::::! IPOIL,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,b. 9 .......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... m 1 ,-- Formatted: Check spelling and grammar `fFormatted: Normal APPENDIX A: NVESTMENT POLICY.......................................................19 APPENDIX B: CITY OF PORT TOWNSEND FEDERAL AWARDS STANDARDS & CODE OF CONDUCT.........................................................................20 Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20234 Page 3 of22 I. FINANCIAL POLICY GUIDELINES The financial policies outlined in this document have been developed in accordance with the Government Finance Officers Association's "Best Practices". These policy guidelines are intended to aid the City Council and City management in financial decision making. These policy guidelines also provide a means to test short term financial and budget decisions to help ensure the City is able to meet its immediate and long-term financial service objectives and obligations. The City of Port Townsend is accountable to its citizens for the use of public funds. Municipal resources must be wisely used to ensure adequate funding for services, public facilities and infrastructure needed to meet the community's present and future needs. These policies are designed to help safeguard the fiscal stability required to achieve the City's goals and objectives. The City's Comprehensive Financial Policies have the following objectives: • To guide the City Council and management policy decisions that have significant financial impact. • To set forth operating principles which minimize the cost of government and financial risk to the City. • To employ balanced, consistent, and fair revenue policies that provide adequate funding for desired programs. • To promote sound financial management by providing accurate and timely information on the City's financial condition. • To protect the City's credit rating and provide for adequate resources to meet the provision of the City's debt obligations for all municipal debt. • To ensure the legal use of financial resources through an effective system of internal controls. II. ORGANIZATION The City provides municipal services for its citizens, including protection of life and property, public health and welfare, and improved quality of life. The City Council deems it a high priority to deliver municipal services in the manner consistent for all citizens, and with maximum efficiency and financial prudence. The Council, as the legislative and governing body, sets the City's Financial and Budget Policy Guidelines, and through its Finance and Budget Committee, monitors and reviews the City's overall financial performance. The City Manager, as the City's Chief Executive Officer and Chief Budget Officer, is responsible to the Council for managing City operations and program services, and preparation of the City's Annual Budget consistent with established Financial and Budget Policy Guidelines. Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 4 of22 The Director of Finance & Technology Services, as the City's Chief Financial Officer and Chief Auditing Officer, is responsible to the City Manager for the preparation of accurate and timely financial and budget reporting. Additional responsibilities include information technology administration, general accounting, business license/tax administration and utility billing operations, grant, federal & state funding compliance, purchasing administration, as well as policy advice to the City Manager and Council. The Department Heads are responsible to the City Manager for department operation budget observance, capital project management, and grants administration. Department Heads monitor related revenue performance and expenditure control with the assistance of the Finance Department. The City must prioritize its services and, should revenues become constrained, the following services are considered priorities in the following general order: 1. Public Life, Health, and Safety: Police, ; building inspections; and traffic control; water, sewer, and storm drainage service and streets infrastructure maintenance. 2. Legal Mandates: Accounting/auditing/financial reporting; land -use planning; required staff certifications and training. 3. City Facilities and Property: maintenance of parks, buildings, public rights of way, and City equipment (including information technology equipment); 4. Council and community goals, both annual and long-range, including strategic plan goals. III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING The City will maintain a system of financial monitoring, control and reporting for all operations and funds to provide effective means of ensuring that overall City goals and objectives are met. Accounting Records and Reporting — The City will maintain its accounting records in accordance with state and federal regulations. Budgeting, accounting and reporting activities will conform to the Budgeting, Accounting and Reporting System (BARS) for Governments as prescribed by the Washington State Auditor. The City maintains its accounting and budgeting records on a cash basis and adheres to the cash basis BARS manual. Capital Assets — As a cash basis entity, the City records and reports only inflows and outflows of cash. When a capital asset is purchased, the entire expenditure is recorded when the cash is expended and depreciation is not recorded. The City considers capital assets to be real and intangible assets above $7,500 in value that have an anticipated life of one year or more. Capital assets are tracked by Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 5 of22 the Finance Department as a fixed asset inventory. Items that are no longer needed or no longer functional will be disposed according to the City surplus policy and state law. Capital assets that are purchased with grant funds may be subject to additional compliance requirements. The department obtaining the grant is responsible for understanding any compliance requirements related to acquiring, inventorying, tracking and disposing of assets obtained through these types of funds. Small and Attractive Assets - The City identifies small and attractive assets as items with a cost greater than $500 but less than $7,500. These items have a life expectancy of more than one year AND are not likely to be immediately missed upon disappearance. These items are generally mobile in nature and may be easily transported from the workplace. Some exceptions to the $500 minimum include tablets, phones, personal computers, and other lower cost items that have ongoing maintenance or service costs associated with them. Department Heads are accountable for the security of these items and are responsible for following the Small and Attractive Assets Policy and Procedures that have been adopted by Council. The Director of Finance and Technology Services (Finance Director) has oversight responsibility for this policy and the associated inventory of these items. Auditing — The State Auditor will perform the City's financial, federal single audit and accountability/compliance audits in accordance with state and federal laws. Results of the audit will be provided to the Council in a timely manner. Cash Management — The Director of Finance & Technology Services will ensure that cash management systems are developed to ensure accurate and timely accounting for all cash and security of all cash assets. Careful financial control of the City's daily operations is an important part of the City's overall fiscal management practices. Achieving adequate cash management and investment control requires sound financial planning to ensure that sufficient revenues are available to meet the current expenditures of any operating period. The City's cash management and investment guidelines are as follows: • The City will maintain a cash management program, which includes internal control practices for collection of accounts receivable, disbursement of funds, and prudent investment of its available cash. • The Director of Finance and Technology Services (Finance Director) serves as the investment officer of the City of Port Townsend. The Finance Director is authorized to oversee the investment program and to develop operating procedures to administer the program. The Finance Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 6 o f 22 Director may delegate the authority to conduct investment transactions and manage the operation of the investment portfolio to one or more subordinates as outlined in the investment program operating procedures. All participants in the City's investment process shall act responsibly as custodians of the public trust. • As permitted by law and City ordinances and to maximize the effective investment of assets, all funds needed for general obligations may be pooled into one account for investment purposes. The income derived from this account will be distributed to the various funds based on their average fund balances on a periodic basis. See Appendix A for Full Investment Policy. IV. FUND STRUCUTURE & FUND RESERVE GUIDELINES The City's accounting and budgeting systems are organized and operated on a fund basis. Funds are accounting entities used to record revenues and expenditures. By definition, balanced funds mean that total revenues equal total expenditures. The budgeted funds are grouped into categories: General, Special Revenue, Debt Service, Capital Projects, Enterprise, and Internal Service. The following provides a brief description of the fund types and reserve guidelines for each fund. The numbers in parentheses represent the BARS manual fund series numbering scheme. GENERAL FUND (010) -- This is the primary operating fund or current expense fund of the City. To maintain the City's credit rating and meet seasonal cash flow, the budget shall provide for an anticipated undesignated fund balance between 8% and 15% of estimated annual revenues for general government fund types. The fund balance shall be exclusive of all reserves not anticipated to be readily available for use in emergencies and contingencies. Should the fund balance fall below 8% of revenues, a plan for expenditure reductions and/or revenue increases shall be submitted by the City Manager to the Council. If, at the end of a fiscal year, the fund balance falls below 8%, then the City shall rebuild the balance within a period not to exceed three fiscal years. GENERAL FUND COUNCIL RESERVE (Included in the General Fund) — In addition to the Fund balance and the Contingency Fund, the budget for the General Fund shall provide for a "Council Reserve" equivalent to approximately 1 % of estimated operating revenues in the General Fund (010). Only the General Fund shall maintain a "Council Reserve." The Council Reserve is established to provide for non -recurring community requests or unanticipated needs deemed necessary by Council. The Council Reserve shall be suspended during times of significant economic downturn, especially during years when the General Fund Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 7 o f 22 ending fund balance falls below 5%. The Council Reserve is a budgeted appropriation expected to be specifically allocated at the Council's discretion. SPECIAL REVENUE FUNDS (101-199) -- These funds account for revenues derived from special taxes, grants or other restricted sources designed to finance particular activities. Apart from any unrestricted General Fund contributions to a Special Revenue Fund, the unexpended ending fund balances carry over year to year and should retain enough revenue to cover operating cash flow and anticipated major project or program obligations of the fund. Of these funds, the Street, Library, and Community Services funds are of an operations nature. The Street and Community Services Funds reserve balance will be equivalent to 2-3% of fund expenditures. The Library Fund reserve is set at 5-8% of Library property tax revenue. Other Special Revenue Funds are more cyclical, or project related and only need retained ending fund balances or transfers in to cover anticipated obligations: Drug Enforcement, Lodging Tax, Fire/EMS, Affordable Housing, and CDBG Grants. 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Ir�;ife Gf &&ii#e S 9-pec n• ewnue......p:uwn�.t.....tlhe.....iiay°sp 3 tfirhgem.ey.....Fug.rw�t....3s-irrer.e.....��:t....a....stirategii�.....irese.rve.....:te....r e,e;t....ein irgeney.....ce�u f&ibli's a°4....:4: ...he.1.ls....rn rnta'µm....e..see';rutfaf...�,:�.eIr:.vµe,e..&dUfiRg...µsegued.sg..O:fC.GOnOrlliiG...dewirntu-u°ru,.....i ,aofm fund ......shouufd......ree:taila......einetiglln.....'µn"n......ii:t&....own.......i rndtnng.....Fuurnd......i 3afannl.r;•e,......1Reserves- to offset nnlrer:.io -ireGUiririk g.cw:.urairtiioffgae.d exIP 6r. :. ;dUnng..tfe budget.year,,.The Qty..s orrtfrngeinay.....f::;:unrnd...f&...i*114:i4(kiiEf....:for ....nnnajo.ir....events....a-nd.....&houufd....ib�e.....n4inta iiReEf.....a:t.....irno less ....:than ..... 11r,....u:¢f:...the ..... enneir,af....p:-tiirn.cf....annrlunall.....01penatii.ng.....Fevennuues,:.....If...:the .....canntfngeirnoy Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 8 of22 fails...-Ib0aw :%.... f...e eirafiRg...K We.n.ue..y.....:the......Cii:ty.....wiill.l.....4,ihhate.....a.....lplean.....:th.at.....wilk....ires4ofe the ....Ibakinfce....to...:the ....ireq utre4l levell....ov.e.f:...a- tt.n.reo....:ye.;a.r....periiod DEBT SERVICES FUND (200) - These funds are used to pay general government debt. The City shall retain or transfer in funds sufficient to cover the annual debt service obligations and retain such "coverage" amounts to comply with bond covenants or other loan restrictions. CAPITAL PROJECTS FUNDS (300) - These funds are established for the acquisition or construction of general government (non -utility) capital improvements. Ending Fund Balance Reserves should be maintained at levels sufficient to cover anticipated annual expenditures with transfers in from supporting funds (General, REET, etc.) to cover project needs. ENTERPRISE FUNDS (400) - These funds are the proprietary or "business -like" funds for operations providing services to the general public supported primarily through user's fees (Water, Sewer, Stormwater, and Utility Revenue Bond). The Ending Fund Balances of these funds should be equal to or greater than 60 days of operating expenditures and any additional amounts needed to build towards future project cash or debt payment needs. To the extent that the reserved Fund Balance and operating cash flow are not adequate to fund needed utility system improvements, additional rate increases or surcharges may be adopted by Council. Included in the Enterprise funds are Debt Service Reserve Funds, Utility Capital Project Funds and System Development Fund. Revenue bonds may be issued by the Enterprise Funds. Investors may require additional lending requirements or covenants. The ending fund balance of the Enterprise Funds should include a reserve to cover any additional covenant requirements. INTERNAL SERVICE FUNDS (500) - These funds are also internal "business- like" funds for operations providing services to other City departments (funds) on a direct cost -reimbursement basis (e.g. Equipment Rental including Information Technology services and equipment and Facilities, Public Works Administration and internal Engineering Services). Fund balances should break even, after set aside of funds for future capital equipment replacements. FIDUCIARY FUNDS (600) - These funds account for assets held by the City as a trustee or as an agent on behalf of others. Ending Fund Balances and any transfers in should be maintained consistent with fund restrictions. ENDING FUND BALANCE, RESERVES, CONTINGENCY SUMMARY Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 9 of 22 The following is a summary of the reserves guidelines. Guidelines will be reviewed annually as a part of the Budget process: General Fund ................................... Library............................................ Street............................................. Community Services ......................... Other Special Revenue Funds ............ Contingency .................................... Debt Service ................................... General Capital ............................... Enterprise Funds ............................. System Development Charges Fund (Enterprise) .................................... Internal Service ............................... Fiduciary Funds .............................. 8-15% of operating revenue 5-8% of property tax 2-3% of expenditures 2-3% of expenditures Sufficient to meet obligations No less than 2% of operating revenue Sufficient to meet obligations Sufficient to meet obligations 60 days of operating expenditures Sufficient to meet obligations Sufficient to meet obligations Sufficient to meet obligations The undesignated General Fund Balance (the balance not tied to a known project) will be maintained at a level that provides the City with sufficient working capital and a comfortable margin of safety to address emergencies and unexpected declines in revenue without borrowing. The City should not use the undesignated General Fund Balance to finance recurring operating expenditures. Annual General Fund revenues should be equal to or greater than annual regular operating expenditures. Reserves above the target can be used for new expenditures, with emphasis placed on one-time uses that achieve future operating cost reductions. General Fund revenues will be used for general government, street and community service programs only. General Fund revenue for other purposes will require approval by the City Council. General Fund revenues will not be used to subsidize utility or enterprise operations, which will be self-supporting through user rates. V. REVENUE POLICIES General Revenue Policies - The City will strive to maintain a diversified and stable revenue system to shelter the government from short -run fluctuations in any one revenue source and ensure its ability to provide ongoing service. Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 10 of 22 Restricted revenue shall only be used for purposes legally permissible and in a fiscally responsible manner. Programs and services funded by restricted revenue will be clearly designated as such. One-time revenues shall support one-time expenditures. County, state or federal funding will be used to finance only those capital improvements that are consistent with the capital improvement plan and local government priorities, and whose operation and maintenance costs have been included in operating budget forecasts. Enterprise Fund Revenue Policies — Enterprise funds will be operated in a manner that maintains a minimum ending fund balance that is not less than 60 days of operating expenditures. Utilities will be self-supporting through user rates and charges. Utility user charges for each of the City utilities will be based on cost of service (i.e., set to full support the total direct, indirect, and capital costs) and established so that the operating revenues of each utility are at least equal to its operating expenditures and annual debt service obligations. The user rates of a utility shall be designated so that a portion covers replacement of the utility's facilities. The Utility will conduct a study of its user rates no less than every 5 years to ensure rates are adequate to fund operations and meet future needs. Fund balances may be used to temporarily offset rate increases, after sufficient funds have been accumulated for identified capital improvement needs or alternative funding for projects has been secured. Fees and Charges (Non -Utility) — All fees for licenses, permits, fines, and other miscellaneous charges shall be set to recover the City's expense in providing the attendant service. Average cost or actual cost methodology may be used. These fees will be reviewed periodically and will be incorporated into the budget process for possible action by Council. Fees and charges for services will generally be set to recover the actual cost of service delivery. Fees that are set lower than the cost -of -service delivery will be reviewed at least every other year to determine if those fees are still appropriate based on City finances and the community needs. Where direct beneficiaries of a city program or services can be identified, fees will be established to recover the costs of that program or service. Fees will also be set in a manner that protects taxpayers from subsidizing special service users. A fee shall be charged for any service that benefits limited interests within the Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 11 of 22 community, except for human needs type services to persons with limited ability to pay. Rental fees will be established to recover full cost of use of the property or facility. Fees related to the rental of City properties may be waived only through approval of the City Manager. The waiver of fees will only be provided if the purpose of the rental or its associated event will benefit the community at large. Some services provide greater benefit to the community. When a greater community benefit is identified, the Council may choose to subsidize, either whole or in part, such services. Park Fees Through a volunteer recruitment program, the Parks will seek to minimize the subsidy required for partial and minimum fee support programs. Solicitation of funds through donations, fund raising events, non-traditional sources, and various other modes will be encouraged by the City through its park user groups. Funds collected for any special purpose shall be earmarked for that purpose. VI. OVERHEAD COST RECOVERY (COST ALLOCATION) As provided in the State Auditor's Office guidelines, "Cost allocation is a method to determine and assign the cost of central services to the internal -government users of those services. Cost allocation thereby enables local governments to more accurately account for the complete cost of the services it provides to the public —and to better assess the fees it should charge them." Included in cost allocation are direct costs (not otherwise charged to budget units) and indirect costs. Direct Costs are those costs that can be specifically identified with a particular service or unit if not already charged directly (e.g. facilities, janitorial, etc.) Indirect Costs are costs incurred for common or joint purposes, benefiting more than one unit, not readily assignable to a specific unit (e.g., legal, human resources, administration, clerk, etc.). The term "allocation" implies that there is no overly precise method available for direct charging a cost to a unit, so the City is using the most appropriate method available for doing so. However, a cost allocation plan should be designed and used to provide a reasonable, consistent and equitable means to allocate costs. Inequitable charges result in questionable charges to grant, utilities and restricted funds. For grant purposes, costs that benefit the public at large cannot be included and should follow the OMB A-87 and/or 2CFR Part 200 guidelines. Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 12 of 22 The Council adopted a Cost Allocation Plan in Resolution 14-035 on June 25, 2014. In addition to using the overhead cost recovery model to assess the appropriate amount of overhead to utilize for establishing user fees, the model will be used to apply charges to Departments/Funds for City-wide overhead indirect cost recovery where allowed (Council, City Manager, City Clerk, City Attorney and Finance). The Council may authorize waiver of the overhead cost -recovery in all or part if Council determines doing so will provide a general benefit to the citizens, taxpayers, or utility rate payer. If a portion of the overhead cost -recovery is waived, the General Fund must absorb these costs; waived costs may not be absorbed by or reallocated to a Special Revenue or Enterprise Fund. VII. GENERAL BUDGET POLICIES Annual Budget — The City's annual budget will be developed in accordance with the policies and priorities set forth in the comprehensive plan, the City Council's strategic plan, City Council goals and priorities, the needs of the community, and federal and state laws. In general, budgeted revenues must meet or exceed budgeted appropriations each year. Current year operating expenses, maintenance costs and direct and indirect costs of services provided will be covered by current year revenues. One- time expenditures may be appropriated if one-time revenues or excess fund balance (in excess of reserve requirements) are available. The City budget appropriations are adopted at the fund level. Department heads are responsible for preparing a budget that reflects realistic expense projections and that adhere to guidelines within this policy document. Expense (Appropriation) Policies — Operating expenditures will be proposed at a level that will be supported by ongoing annual operating revenues. Staffing Budget — Salary and benefit costs are the City's most significant operating expense. The City will strive to provide a total compensation package that is comparable to other cities and similar type positions within the same labor market or other cities of a similar size with comparable type and quality services in order to recruit and retain high quality staff. The City Manager's proposed budget will identify staffing levels and provide justification for any increases or decreases in overall City staffing. Union Contract negotiations may impact budget expenditures annually. However, if a collective bargaining agreement is, or will be, under negotiation, a specific Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20234 Page 13 of 22 amount will not be included in the budget from potential wage adjustments resulting from the negotiation, other than a base COLA adjustment. This is to protect the City from any claims of not "bargaining in good faith". Funding for unknown contract terms must be considered in balancing ongoing revenues with ongoing expenses. Equipment Replacement & Maintenance - Equipment replacement and maintenance projections will be updated each year. Replacement of items with a cost of 7,500 or more will be reviewed to time such expenditures at stable intervals to preserve cash flow, when possible. Deferment of regular repair and maintenance will not be used to balance the budget. Training and Travel — City employees or others on official City business or training may be required to travel outside the City to conduct their business or training for the City. City employees and officials will be reimbursed for reasonable and customary expenses incurred in the conduct of their business for the City, including food, lodging and travel expenses while away, excluding any expenses for personal entertainment or alcoholic beverages, as provided in the City's Personnel Policies Manual for business or training travel. Such training or travel shall be as provided either specifically or generally in the annual budget. Training is an investment in maintaining the certifications and skills of the City's employees. Allocating 1 % of the department's budgeted salary expense is recommended for certifications and skills training. The City will also include a targeted amount of 1% of City-wide salaries for organizational development and process improvement. Investments that Forestall Adding Permanent Staff - Since personnel -related expenditures represent the largest portion of the City's budget, funding of technology or process improvements that increase efficiency and effectiveness of the delivery of City services should receive priority funding. Budget Monitoring - The Director of Finance and Technology Services will maintain a system for monitoring the City's budget performance. This system will provide timely information to Department Heads and the City Manager to ensure accuracy of financial data and compliance with budget appropriations. The Council will receive (at a minimum) quarterly reports regarding fund level revenues and expenditure performance compared to budget. Significant financial issues that need to be addressed between regular monitoring reports will be provided to Council as warranted. Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20244 Page 14 of 22 The Finance Director will monitor unanticipated needs or emergency expenditures and prepare budget amendments or supplementals in compliance with State Law. Vill. FINANCIAL PLANNING POLICIES Financial Forecast — The City will develop a 5-year Financial Plan and Forecast Model based on these financial policy guidelines and a best estimate of likely revenues and expenditures. The model will be used to test the policies against likely surrounding economic conditions. The model will be used for long-range financial planning and is not a replacement for budgeting. The City's financial planning will include the current year budget plus five additional years of projected data. The City may elect to extend its planning horizon further if conditions warrant. The long-range financial plan operating revenues and expenses will include data for the General Fund, Contingency Fund, Library Fund and Community Services Fund. In addition to ongoing revenues and expenses, this forecast will utilize assumptions that forecast general obligation debt and general fund contributions to capital projects. The long-range financial plan should present trends and projections in key financial indicators, such as: • Revenues and expenses per capita including nominal and inflation adjusted data. • Staffing levels per 1,000 population: total and by major department. • Projected annual growth rates of revenues and expenses including personnel costs. The long-range financial plan may include comparisons to other cities and benchmarks, recognizing that the data for comparable cities may reflect differences in service delivery, financial structure and financial policies. Comparative information may include: • Comparative revenues and expenses by major type to include: c Total revenues and expenses per capita. c Taxes per capita by tax source. IX. ENTERPRISE FUNDS The Water, Sewer and Stormwater utilities will be managed as self-supporting business enterprises. Each utility will be managed in a professional manner in accordance with applicable laws and standards. The long-range financial plan model for each utility will analyze rate revenues, rate structure, operating costs, Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 15 of 22 replacement capital costs, debt service and other utility considerations (special rate programs, paybacks, etc.). The City may utilize specialized rate consultants to evaluate the rate and cost structure of the utilities. X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES General Policy Considerations - The major resources for funding capital improvement and capital maintenance programs are revenues, grants and debt. Financing planned capital replacement costs are an ongoing challenge. Preparing for the challenges of infrastructure replacement or enhancements demands a long-term view of replacement needs. In order to plan for these needs the City will develop a six -year Capital Improvement Plan (CIP) for adoption by Council as required by the Washington's Growth Management Act. The CIP will be consistent with the Capital Facilities Element of the City's Comprehensive Plan. A capital project over $15,000 with a minimum of a five-year anticipated life will be included in the CIP. XI. DEBT MANAGEMENT POLICY Long Term Debt - The City will manage its long-term debt in a manner designed to utilize its credit to optimize City services while balancing overall debt levels and annual debt service obligations. Long-term debt includes Bonds, Federal or State loans (e.g. PWTF, FHA), or private placement financing. The City shall only use long-term debt for capital projects that cannot be financed out of current revenues. Annual debt payments should not exceed 15% of the total of annual General Government operating revenues plus budgeted transfers from capital funding sources. General Government Funds include the General Fund, Contingency Fund and Special Revenue Funds. Debt financing will generally be limited to one-time capital improvement projects and only under the following circumstances: • Debt payments shall not extend beyond the estimated useful life of the project being financed. The City shall keep the average maturity of general obligations bonds at or below 30 years, unless special circumstances arise warranting the need to extend the debt schedule. • When project revenue or specific resources as identified will be sufficient to service the debt; • When projects greater than $100,000 cannot be financed on a pay-as-you-go basis from anticipated cash flows. Debt financing will not be considered appropriate for: • Current operating and maintenance expenses (except for issuing short-term instruments such as revenue anticipation notes or tax anticipation notes); and any recurring purpose (except as indicated above). Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 16 of 22 • Grant match less than $100,000 where funding is anticipated from on -going cash flow or reserve balances. • Projects less than $100,000 where funding is anticipated on a pay-as-you-go basis from anticipated cash flows or reserve balances. Tax anticipation debt will be retired annually, and bond anticipation notes will be retired within six months of the completion of the project. Short-term debt outstanding at the end of the year will not exceed 5% of net operating revenue (including tax anticipation notes but excluding bond anticipation notes.) The City's Limited (non -voted) General Obligation (LTGO) Debt Capacity per State Law is 1.5% of total assessed value. The City should seek to retain 5-10% of its LTGO Debt Capacity for unforeseeable catastrophic emergencies. Options for Interim or "Bridge" financing may include: • Bond Anticipation Notes (BANS) • Tax Anticipation Notes (TANS) • Lines of Credit with major financial institutions • Interfund Loans Short Term Debt — Transfers and Interfund Loans — General Fund transfers to other funds are intended as payments for the support of specific programs or services. Amounts not needed to support such specific program or service expenses will remain in the General Fund's fund balance. For example, the General Fund may make transfers to the Debt Fund to fund annual debt service payments or to the Community Services Fund to support parks or service programs. Interfund loans are temporary in nature. The requirements for interfund loans are as follows: • The Council must approve all interfund loans by resolution. The resolution will include a planned schedule of repayment of the loan principal as well as setting a reasonable rate of interest to be paid to the lending fund. • The borrowing fund must reasonably be able to anticipate sufficient revenue to repay the principal and interest payments as required by the authorizing resolution. • The rate of interest should not be lower than the "opportunity cost" if the funds were otherwise invested, such as the LGIP (Local Government Investment Pool) rate or a bank CD rate for a similar term; not higher than the external rate available to the municipality. • Interest is not required in the following circumstances: o If the borrowing fund has no independent source of revenue other than the lending fund; Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 17 of 22 o The lending fund is the General Fund, which, being unrestricted, can provide interest free loans to other funds. The term of the interfund loan will not exceed three years. Any interfund loans that are not repaid within three years will be scrutinized for a "permanent diversion" of moneys. (Note: These restrictions and limitations do not apply to those funds which are legally permitted to support one another through appropriations, transfers, advances, etc.) For short-term cash deficits in non -General Fund operating funds during the course of the year, City interfund loans are preferable to outside short-term or private sector lines of credit. XII. PURCHASING POLICY Purchases of goods, services and capital items will be made consistent with the annual budget appropriations, state and federal law, the City's Purchasing Ordinance and the State Auditor's requirements. The City's Purchasing Ordinance will outline the City Manager's spending and contracting authority. Any purchases or contracts above those authority limits must be authorized in advance by City Council (some exceptions for public emergencies will apply). The City Manager may delegate spending authority (within his/her limits) to Department Heads to facilitate operating efficiency. The City Manager and Department Heads purchase goods and services at a reasonable cost, using an open, fairly documented and competitive process whenever reasonable and possible. The Director of Finance & Technology Services (Finance Director) is charged with developing administrative/operating procedures to implement sound purchasing policies. These procedures will be based on guidelines provided in State Law and by the State Auditor's Office. All purchases made by the City will ultimately be approved by the Council through the voucher approval process. XIII. ELECTRONIC FUNDS TRANSFER POLICY Electronic payment methods are a safe and efficient method to process disbursements and receive payments for City business. City policy is to establish the best methods to process payments to employees and vendors. In addition, City policy is to establish the best methods to receive payments from customers and vendors. Electronic payment methods may include Electronic Funds Transfer (EFTs), Automated Clearing House (ACH), Wire Transfers, credit card and debit card. The Director of Finance & Technology Services (Finance Director) will maintain administrative/operating procedures to manage sound electronic fund transfer policies and procedures. Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 18 of 22 XIV. GRANTS MANAGEMENT POLICY Leveraging City and community resource with external financial assistance can enhance the quality and level of public services, facilities and infrastructure. City Policy is to seek and accept grants and other financial assistance consistent with the City's strategic plan. External assistance also carries with it the goals and restrictions of the grantor. Grant relationships are partnerships where the goals of both the City and grantor must be in alignment. The benefits, costs and long-term implications of the partnership must be considered prior to formal application. The City's Grants Management Policy involves the following steps: Search— City department staff and officials are encouraged to actively search out and identify potential grants which may further the City's vision and goals, within the City's financial limitations. Pre -Application — Department Directors and staff shall pursue grants within their purchasing authority identified in City Purchasing Policies. The City Manager shall be advised of all grant considerations over a $10,000 total. Formal Application — Formal applications directly by the City, or indirectly by other agencies involving the City, must fall within Departmental Purchasing levels. All grants will seek reimbursement of direct cost departmental and City wide indirect or administrative costs to the maximum extent allowable by the grantor. Grants by other agencies involving the City or by the City involving other grantees must have City Manager, or Council approval beyond the $60,000 Purchasing levels. Award and Contract — Upon formal Notice of Grant Award (NOGA) or informal notification, a written contract must be approved prior to any City commitment, formal or otherwise. All grant contracts must be within the City's Purchasing levels. Any needed budget amendments for grant match not otherwise within general budget authority shall be adopted prior to formal grant acceptance and contract signing. Accounting and Reporting — City departments shall coordinate with Finance to assure that grants comply with Federal, State and local requirements for timely reimbursements, monitoring of vendors and sub recipients, as well as City Purchasing Policies. Any notification of audit of grant programs or funds should Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 19 of 22 be sent to the Director of Finance & Technology Services even if the audit is coordinated in another department. Close Out — Multi -year grants shall have periodic accounting reviews not less than at the close of each fiscal year. Upon conclusion of each grant, the Department grant manager shall prepare a grant close-out report in coordination with the City's Finance Department. A complete grants management file record shall be maintained per City policy, either in the Department, Finance or Clerk's Office. The City Council Adopted Federal Awards Standards, Procurement Policy and Code of Conduct Policy for all Federal Loans and Grants on July 10, 2017. Standards for federal awards are detailed in Appendix B. VIi VACANCY IRA"'f"Il::::' III°�OIi,,,,,IIIC"u( .................................................................................................................................................................................... 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At Ileast 20% of the Vacalrnr, IF��at�; saviirn s sll°noulld tll°nr.lre Ike an s ..........................................................................................................................................................y................................................................0.......A..............................................................................................................y.r.............. r;�.COInrnlim;p.e ndgad.... �u...:!t�.....: g jilrn..0.... f..tIf:1.0....IFS,�a,;li,it:P.2°:.J.D .X....IE.:.gnd,:. Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 20 of 22 APPENDIX A: INVESTMENT POLICY To the extent possible, funds not needed for operations should be invested in approved investment vehicles. Investments shall be made with judgment and care, under circumstances then prevailing, that persons of prudence, discretion, and intelligence in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investments officials shall be the prudent person standard and shall be applied in the context of managing the overall portfolio. Investment officers acting in accordance with written procedures and the investments policy and exercising due diligence shall be relieved of personal responsibility for an individual's security's credit risk of market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. The City will strive to maximize the return on its investments, with the primary objective of preserving capital and prudent investment practices, including diversification. Investments will be made in accordance with the following objectives: 1) Legality: Funds of the City will be invested in accordance with the Revised Code of Washington (RCW), the BARS manual, these policies and any applicable administrative procedures. 2) Safety: Investments of the City will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do no exceed the income generated by other investments. 3) Liquidity: The City's investments will remain sufficiently liquid to enable the city to meet all operating requirements that might be reasonably anticipated. 4) Yield: The City's investments will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow characteristics. The Director of Finance & Technology Services (Finance Director) will approve financial institutions to be eligible to conduct investment business with the City, in accordance with Washington State Law. The Director of Finance & Technology Services (Finance Director) will periodically furnish the City Manager and Council with a report that shall include the amount of interest earned to date. At least annually, a report summarizing investment activity and rate of return will be provided. Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 21 of 22 APPENDIX B- CITY OF PORT TOWNSEND FEDERAL AWARDS STANDARDS. & CODE OF CONDUCT CITY OF PORT TOWNSEND FEDERAL AWARD STANDARDS PURPOSE Establish and maintain internal controls that provide reasonable assurance that Federal awards are being managed in compliance with all federal regulations and with the terms and conditions of the award. The City of Port Townsend will follow the Uniform Guidance, the Local Agency Guidelines (LAG) distributed by The Washington State Department of Transportation (WSDOT), and the City of Port Townsend's Comprehensive Financial Management Policy Guidelines. INTERNAL CONTROLS The City of Port Townsend will maintain effective internal control over the Federal award providing reasonable assurance that the City of Port Townsend is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. • Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings. • Take reasonable measures to safeguard protected personally identifiable information and other information the Federal awarding agency or pass - through entity designates as sensitive. ADVANCE PAYMENTS AND REIMBURSEMENTS Payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass -through entity and the disbursement by the City of Port Townsend whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. • Advanced payments must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the City of Port Townsend to carry out the purpose of the approved program or project. Any advanced payments must be consolidated to cover anticipated cash needs. • The City of Port Townsend shall minimize the time elapsed between receipt of federal aid funds and subsequent payment of incurred costs. ALLOWABLE COSTS Federal awards will meet the following general criteria to be allowable except where otherwise authorized by statute: 0 Be necessary and reasonable for the performance of the Federal award; Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20224 Page 22 of 22 • Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items; • Be consistent with policies and procedures that apply uniformly to both Federally- financed and other activities of the City of Port Townsend; • Be accorded consistent treatment; • Not be included as cost or used to meet cost sharing or matching requirements of any other Federally -financed program in either the current or a prior period; • Be adequately documented. SINGLE AUDIT ACT The City of Port Townsend, as a recipient of Federal funds, shall adhere to the Federal regulations outlined in 2 CFR §200.501 as well as all applicable Federal and State statutes and regulations. CLOSURE A project agreement end date will be established in accordance with 2 CFR §200.309. Any costs incurred after the project agreement end date are not eligible for Federal reimbursement. Comprehensive Financial tllanagementPolicv Guidelines P Ado ted December 42, 20234 Page 23 of 22 CITY OF PORT TOWNSEND CODE OF CONDUCT PURPOSE The purpose of the Code of Conduct is to ensure the efficient, fair and professional administration of federal grant funds in compliance with 2 CFR §200.112, 2 CFR §200.318 and other applicable federal and state standards, regulations, and laws. APPLICATION This Code of Conduct applies to all elected officials, employees or agents of the City of Port Townsend engaged in the award or administration of contracts supported by federal grant funds. REQUIREMENTS No elected official, employee or agent of the City of Port Townsend shall participate in the selection, award or administration of a contract supported by federal grant funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when any of the following has a financial or other interest in the firm selected for award: • The City employee, elected official, or agent; or • Any member of their immediate family; or • Their partner; or • An organization which employs or is about to employ any of the above. The City of Port Townsend's elected officials, employees or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors or subcontractors. REMEDIES To the extent permitted by federal, state or local laws or regulations, violation of these standards may cause penalties, sanctions or other disciplinary actions (up to and including employment or contract termination) to be taken against the City of Port Townsend's elected officials, employees or agents, or the contractors, potential contractors, subcontractors or their agents. Any potential conflict of interest will be disclosed in writing to the Federal awarding agency or pass - through entity in accordance with applicable Federal awarding agency policy. City0f Port< k250 Madison Street, Suite 1, � Port Townsend, WA 98368 1360.385.2700 � wmmAtyofpt.us � Townsend FINANCE Purchasing Policies and Procedures Manual 250 Madison Street Port Townsend, WA 98368 cityofpt.us PURCHASING MATRIX - BID LIMITS & SIGNING AUTHORIZATION (Always include applicable sales tax when determining dollar amounts) W �/� / M NO //�/ N / � / W M � 11 M/ I M Under $500 No requirement Payment off signed invoice (or use Department head or purchase card if within limits) designee No contract required Employee personal reimbursement if approved by supervisor W-9 $500-$7,500 No requirement, but three Payment off signed invoice (or use Department head or estimates recommended purchase card if within in limits) designee May use MRSC Vendor W-9 Roster, State contract, or interlocal agreement Select lowest qualified vendor $7,501-$25,000 Obtain three telephone Purchase order if >$10,000 Department head (if and/or written quotations within budget or use formal bidding Requisition form & signed invoice appropriations) May use MRSC Vendor W-9 Roster, State contract, or interlocal agreement Select lowest qualified vendor Must either: Purchase order City Manager (if $25,001 formally bid, use within budget $75,000 State contract, or Requisition form & signed invoice appropriations) interlocal agreement W-9 Select lowest qualified vendor Must either: Purchase order Council approval" $75,001 or more formally bid, use State contract, or Requisition form & signed invoice Contract and/or interlocal agreement invoice signed by City W-9 Manager Select lowest qualified vendor M/m/M E/ /�NEMBE $25,000 or less Required to have three Small public works contract Department head or estimates designee Insurance May use MRSC Small Works Roster W-9 Award to lowest qualified Prevailing wage (Contractor may contractor use Combined Intent/Affidavit Form for projects $2,500 or less) Alternatively, may use day labor (City staff) 5% retainage or retainage bond, unless waived in advertisement by City Manager, department head, or designee Performance and payment bonds, unless waived in advertisement by City Manager, department head, or designee Less than $$75,000 Obtain estimates from at Small public works contract City Manager for less Limited Small Public least three contractors on than $75'000 Works process MRSC Small Works Roster' Insurance W-9 Contracts over these Award to lowest qualified limits require Council contractor Prevailing wage approval Alternatively, may use 5% retainage or retainage bond, Contract signed by formal bidding or day unless waived in advertisement by City Manager labor (City staff) City Manager Performance and payment bonds, unless waived in advertisement by City Manager Contractor may choose to have 10% retainage held instead of providing performance and payment bonds Purchase order (encumbrance) if >$10,000, except capital projects $350,000 or less Obtain estimates from at Small public works contract Council approval (see Small Public Works Roster least five contractors on above) process MRSC Small Works Roster Insurance Contract signed by All contractors in W-9 City Manager applicable roster category must be given opportunity Prevailing wage to submit estimate before any contractor can be 5% retainage or retainage bond, solicited again unless waived in advertisement by City Manager' If project total is between $250,000-$350,000, all Performance and payment bonds contractors in applicable category must be notified Contractor may choose to have that project is being bid 10% retainage held instead of providing performance and Recommend bid deposits payment bonds for projects for projects >$40,000 $150,000 or less Alternatively, may use Purchase order (encumbrance), formal bidding or may use except for capital projects day labor (City staff) for approved in CIP single trade projects $75,500 or less and multiple trade projects $116,155 or less Award to lowest qualified contractor Projects over $350,000 Must use publicly Public works contract Council approval advertised formal bid process Insurance Contract signed by City Manager' 5% bid deposit required W-9 Prevailing wage 5% retainage or retainage bond Performance & payment bonds Purchase order [except Capital Projects approved in CIP] Under $5,000 No requirement, but three No contract required Department head or estimates recommended designee Payment off signed invoice Check requirements if using federal funding W-9 Prevailing wages may be required for certain services (e.g., landscaping) $5,000-$9,999 No requirement, but Professional services agreement Department head or recommend at least three designee estimates from firms on Insurance the MRSC Consultant Roster W-9 Request price quotes, Purchase order (encumbrance) if schedule, qualifications requested Check requirements if Prevailing wages may be required using federal funding for certain services (e.g., landscaping) Contract with lowest qualified vendor $10,000-$19,999 Request proposals or Professional services agreement City Manager estimates from at least three firms on the MRSC Insurance Consultant Roster W-9 Request price quotes, schedule, and Purchase order (encumbrance) qualifications Prevailing wages may be required Check requirements if for certain services (e.g., using federal funding landscaping) Contract with lowest qualified vendor $20,000 - $75,000 Formal, advertised RFP or Professional services agreement City Manager 6 RFQ process recommended Insurance Check requirements if W-9 using federal funding Purchase order (encumbrance) Contract with lowest qualified vendor Prevailing wages may be required for certain services (e.g., landscaping) $75,000 or more Formal, advertised RFP or Professional services agreement Council approval" RFQ process recommended Insurance Contract signed by City Manager Check requirements if W-9 using federal funding Purchase order (encumbrance) Contract with lowest qualified vendor Prevailing wages may be required for certain services (e.g., landscaping) Any dollar amount Must publish need for Professional services agreement City Manager if less services in advance than $75,000 Insurance, including professional May use MRSC Consultant liability $75,001 or more Roster requires Council W-9 approval Firms submit statement of qualifications Purchase Order if > $10,000 Award based on qualifications, not price Some A/E contractor funding agencies may require their own contract and/or contract language placed int eh city contract. Verify with funding agency. ' The City Manager may sign contracts for purchase of goods greater than $75,000 if they specifically implement the annual budget and result from the aggregation of approved budgetary programs and services for the current year (PTMC 3.46.110(A)(1)). ' For projects under $50,000, you may use the Limited Small Public Works process, which requires estimates from at least three contractors on the roster. The City Manager may sign public works contracts up $75,000 for multiple trades if the contract is time -sensitive and a delay in bringing the matter before Council would cost the City time and money. 4 Retainage is not required for federally funded transportation projects through the Federal Highway Administration. Check grant documents for specific requirements. If the local government waives retainage, they assume liability of contract non -payments but due retain the right of recovery from the contractor. "�" Federally funded or assisted public works projects over $2,000 require payment of Davis -Bacon wage rates determined by the U.S. Department of Labor. 6 The City Manager may sign professional services contracts, including architectural, engineering, legal, or consulting services, up to $75,000 if the contract is time -sensitive and delay in bringing the matter before Council would cost the City time and money. 7 Once a contract has been awarded the City Manager may sign invoices that exceed $75,000 as long as the total cost of the project does not exceed the approved contract amount or where change orders do not exceed council authorized limits for City Manager purchase or contract authority. Table of Contents 1.0 Introduction 1.1 Purpose of the Manual 1.2 Contact Information 1.3 Code of Ethics (RCW 42.23) 1.4 Conflict of Interest 1.5 Unauthorized Purchases 1.6 Sustainable Purchasing 1.7 What This Manual Covers 1.8 Define the Need 1.9 Determine the Cost 1.10 Determine Contract Value 1.11 Exemptions to the Competitive Bidding Process 1.12 Declared Emergency 2.0 New Procurement 2.1 Initiate a New Procurement 2.2 Purchases of Goods, Supplies, & Equipment 2.2 (a) SMALL Purchases of Goods, Supplies, & Equipment ($7,500 or less) 2.2 (b) INTERMEDIATE Purchases of Goods, Supplies, & Equipment ($7,501-$15,000) 2.2 (c) LARGE Purchases of Goods, Supplies, & Equipment ($15,001 or more) 2.3 Food and Beverage Purchases 2.4 Piggybacking (State Contracts and Interlocal Purcha sing Agreements) 2.5 Public Works 2.6 Limited Small Works Process (Public Works Projects under $50,000) 2.7 Small Works Roster Process (Public Works Projects $350,000 or less) 2.8 Formal, Competitive Bid Process (Required for Public Works Projects over $350,000) 2.9 Equipment Purchases Including Installation 2.10 Unit Priced Contracts 2.11 Services 2.12 Purchases of Architectural & Engineering Services 2.13 RFPs and RFQs 2.14 Bid Opening Process 2.15 No Bids or Non-Responsive/Responsible Bids or Submittals 2.16 Contracting 101 3.0 Other Considerations 3.1 Rule 171 - Sales Tax Exemptions 3.2 Prevailing Wages 3.3 Retainage 1 1 1 2 2 3 4 4 5 6 6 7 8 9 9 9 9 10 11 12 14 15 16 16 17 17 18 18 19 20 21 23 24 26 28 29 31 31 31 33 4.0 Contract Administration 34 4.1 Risk Management Considerations 34 4.2 Payment Options 34 4.3 Contract Execution & Administration 35 4.4 Contract Monitoring - Performance 36 4.5 Contract Monitoring - Payment 37 4.6 Amendments & Change Orders 38 4.7 Contract Close -Out & Termination 39 5.0 Surplus and Disposition of Assets 41 5.1 General Information 41 5.2 Declaring Surplus 41 5.3 Disposition of Personal Property 42 5.4 Seizure Items (RCW 69.50.505) 43 5.5 Surplus of Real Property (Land) 43 6.0 Purchasing Cards 43 6.1 Purchasing Cards as a Method of Payment 43 6.2 Purchasing Card Administration 44 6.3 Authorized Charges and Uses 45 6.4 Unauthorized Purchases 45 6.5 Returns and Exchanges 46 6.6 Account Maintenance 46 7.0 Definitions and Acronyms 4.7 1.1 Purpose of the Manual The Purchasing Policies and Procedures Manual guides and assists City staff with basic procurement and contracting requirements as set forth in the City of Port Townsend Municipal Code (PTMC) Chapter 3.46 and Washington State statutes. This manual establishes policy guidelines and clarifies the procedures for purchasing supplies and materials, public works construction, and contracting for services by the City of Port Townsend. The procedures set forth in subsequent sections of this manual are designed to assure the citizens, the City Council, and City administrative staff that the City is receiving maximum value for each tax and utility dollar expended and to ensure fiscal responsibility in the procurement process. All employees and City representatives must follow these policies and procedures. All references to the Revised Code of Washington (RCW) and City Ordinances and Resolutions shall be incorporated as part of this manual, including all future amendments. In cases where these policies conflict with any City Ordinance or State or Federal Law or Regulations, the terms of that law or regulation prevail. In all other cases, these policies apply. 1.2 Contact Information Name Responsibility Finance Director/Manager Fiscal control, policy, & budget Finance Director/Manager Grants & capital improvement Finance — Accountant/Finance Specialist program City Attorney/Legal Asst. Contracts and bidding process Finance Technician III Accounts payable & vendors; ordinary purchases of supplies, materials, maintenance, and equipment; surplus & disposition of assets; purchasing cards i 1.3 Code of Ethics (RCW 42.23). This section of the manual should be interpreted in tandem with the City of Port Townsend Personnel Policy Manual Chapter 2.1 (Code of Conduct) and PTMC Chapter 2.80. Please also refer to RCW 42.23 (Code of Ethics for Municipal Officers — Contract Interests). A municipal officer includes all elected officials, advisory board members, and City employees. City employees are expected to represent the City in a professional and accountable manner that is courteous, helpful, and efficient. Employees shall conduct their public and private actions and financial dealings in a manner that shall present no conflict of interest between the public trust and their private interest. Actions of City employees, when purchasing supplies and services, should be fair and impartial and not be used for personal gain or benefit. Public employment shall not be used for personal gain, and City employees may neither solicit, accept, nor agree to accept any compensation, gratuity, or reward for themselves, their families, or others that results in their personal gain or which may affect their impartiality in making decisions on the job. Discounts or concessions realistically available to the general population, items received that do not result in personal gain, and samples for general City use are examples of items that are not gratuities. Personal judgment should be used, and questions regarding particular situations should be referred to the employee's supervisor or department head. Personal gifts or gratuities that might influence or give the appearance of influencing purchases of goods or services must be declined. Employees may not willfully circumvent purchasing and procurement policies and procedures to enter into contracts or purchase goods and services. Any contract made in violation of this policy manual, City code, or State statutes will be considered null and void, and the employee or officer may be subjectto discipline or dismissal. Willful disregard of these policies and statutes when purchasing goods and services may also be subject to discipline and/or dismissal from service. Please see PTMC 2.80.060 (Penalties) for reference. 1.4 Conflict of Interest No City staff or Council member may undertake consulting, professional practice, or other assignments that would result in a conflict of interest. Any 2 City employee or Council member who recommends or approves a purchase and has any financial interest in the firm involved in the purchase shall disclose his or her interest prior to recommending or approving the purchase. No city staff or Council member may participate in the selection, award, or administration of a contract supported by a Federal award if they have a real or apparent conflict of interest. Such a conflict of interest would arise when the City employee or Council member, any member of their immediate family, their partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. Any willful violation will be subject to disciplinary action according to PTMC 2.80.060. 1.5 Unauthorized Purchases PURCHASES FOR PERSONAL USE ARE NOT ALLOWED. The person ordering the unauthorized and unjustified purchase is personally liable for the costs of the purchase or contract and may be subject to disciplinary action, up to and including termination of employment. If the purchase was made without proper authorization but is in fact a justified purchase, then the department head has the option to approve the purchase after the fact. When representing the City through purchasing goods and services, employees are prohibited from doing the following: • "Bid Splitting" —A capital (public work) project means a complete project. The project may not be split into units or classes of work to avoid the restriction on work that may be performed by day labor or other bid rules. • Purchase breakup — Purchases that exceed authorization limits or exceed the quote requirements should not be split up to circumvent the purchasing policies and procedures. • Purchasing alcohol or personal entertainment goods and services. • Generating a purchase order. Only the Legal Department or Finance Department have the authority to generate a purchase order (encumbrance). • Purchasing controlled commodities without prior approval including the following: o Cell phones, telephone equipment, pagers, etc. o Computers and related equipment, fax machines, printers, scanners, copiers, software, or systems 3 o Anything that IT staff is requested or required to install, connect, service, maintain, or support o Anything purchased using Equipment Rental and Revolving Funds o Using a City -issued purchase card for cash advances or professional services 1.6 Sustainable Purchasing The City shall acquire its goods and services in a manner that complies with all federal, State, and City laws and other requirements (e.g., City resolutions). Environmental factors to consider in selecting products include: • Pollutant releases, especially persistent bio-accumulative toxins (PBTs) • Waste generation • Greenhouse gas emissions • Recycled content [recommend using 30% recycled paper] • Energy consumption • Depletion of natural resources • Potential impact on human health and the environment Social equity factors that should be considered include but are not limited to: • Use of local businesses when allowable under bid rules • Use of small, minority, and women -owned businesses • Ergonomic and human health impacts Fiscal factors to be considered include but are not limited to: • Lowest total cost • Leveraging our buying power • Impact on staff time and labor • Long-term financial/market changes • Technological advances in a rapidly changing market 1.7 What This Manual Covers The process of selecting vendors and managing contracts shall embody the value of stewardship of public resources by providing the greatest levels of both quality and value. The goals are to ensure that the purchase process: 4 • Practices ethical behavior and conduct: Create purchasing processes that are fair, open, and at least cost of public funds. • Obtains value with public funds: Purchase goods and services that are fiscally responsible, reduce resource consumption and waste, perform adequately, promote advantages to lessor advantaged segments of the community, and promote health and well-being. • Acts with integrity and ensures open and effective communication: Be impartial in fact, as well as in appearance. From Start to Finish... Before any purchase is made, the following questions should be answered: • Define the need — What kind of purchase is this? • Determine the cost— How much will it cost? • Process — How do I procure it? • Protecting the City — How do we properly protect the City from liability? • Authority —Who must approve it? • Contract administration — What are my responsibilities? 1.8 Define the Need The first question that should be answered is "What type of purchase is this?" The major categories of purchases include: Public Works:..(...................m4m.). Includes all work, construction, alteration, repair, or improvements other than ordinary maintenance executed at the cost of the City: Examples: demolition, remodeling, renovation, road construction, building construction, and utilities construction. Ordinary maintenance is generally considered to include work not performed by contract and performed on a regular basis to service, check, or replace items that are not broken. For purposes of prevailing wage 5 requirements, public works includes ordinary maintenance when performed by contract. See Section 3.2. Materials, Supplies, and Equipment: Materials, supplies, and equipment are considered tangible items, which are manufactured and are moveable at the time of purchase. It is important to distinguish materials, supplies, and equipment used in public works contracts from those in non-public works contracts, as different bidding requirements apply to each. Examples: office supplies, off -the -shelf software, hardware, trucks, copy machines, auto parts, gravel, janitorial supplies, food, and beverages. CPrvirpv Distinguishing between services and public works is important, as services have different bidding requirements. Services require the labor, time, or effort of a human being and can include intellectual or physical work. Examples: accountants, attorneys, elevator maintenance, instructors, technology consulting, engineers, and land surveyors. 1.9 Determine the Cost Once the need has been defined, the estimated cost of the goods or services will generally determine what competitive selection process you follow. Estimated project costs for competitive bidding purposes must include: • All construction -related work (except for engineering or architectural design fees) • All phases of the project • Any permitting costs of the project • All labor and materials required for the project • All applicable sales and use taxes The cost estimate should not include donated materials, labor, supplies, etc. 1.10 Determine Contract Value Contract value refers to the total aggregate value of the contract, including potential renewal periods. Examples of contract value are as follows: • Example #1: A three-year contract for $40,000 per year is considered a $120,000 contract. • Example #2: A one-year, $8,000 professional services contract is renewed for an additional year at $8,000. The aggregate value of 6 the contract becomes $16,000, which requires City Council approval. 1.11 Exemptions to the Competitive Bidding Process Exemptions to this policy must be approved in writing by the City Manager when within his or her signing authority; otherwise, exemptions shall be approved by City Council. Exemptions should make good business sense and be in the best interest of the City. In all cases, it is the City's responsibility to conduct a good faith review of all available providers. Exemptions to competitive bidding requirements as provided in II1 .0.4 280(j) and PTMC 3.46.090: • Licensed or patented goods or services • Specialized items that are compatible with existing equipment or systems (i.e. water treatment plant Sole source filters) • Meets City standards (i.e. meters) • Factory -authorized warranty services • Meets a specialized need of the City • Items of special design, shape, or manufacture that Purchases involving match or fit existing equipment, inventory, systems, special facilities or programs, or services market conditions . Items offered at highly favorable price that will be sold before City can follow bidding process Auctions, closeout, & • Only when items can be purchased below market bankruptcy sales cost Emergency purchases • See Section 1.12 or public works Purchases of insurance Competitive bidding is not required for insurance or or bonds bond purchases • The City Manager, upon approval by City Council, may proceed to acquire real property through negotiation • Negotiations must be based upon an independent Real property appraisal of the property • The City will not pay more than market value • If purchased with federal funds, the acquisition shall comply with the Uniform Real Property Acquisition and Relocation Assistance Act of 1970, as amended • The City may by agreement acquire, sell, or Surplus property (RCW exchange surplus property to or from another 39.33.010) government without the use of bids 7 Interlocal agreements • See Section 2.4 (Piggybacking) (RCW 39.34.030) Exemption Process: Complete a written request to the City Manager or City Council (depending on signing authority) explaining why this option is the only option, makes good business sense, and is in the best interest of the City. Explain what features, knowledge, or qualifications the vendor can provide that are not available from other sources. Outline steps taken to verify that this is the only vendor available, which could include: (1) internet search (2) calls to vendors or contractors on MRSC rosters (3) advertisement in paper with a "Notice of Intent to Contract" (4) advice from expert consultant in service area This request should be signed by the requestor. Use the Sole Source Justification Form if applicable. 1.12 Declared Emergency For purposes of this section "emergency" means unforeseen circumstances beyond the control of the City that either: (a) present a real, immediate threat to the proper performance of essential functions, or (b) will likely result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken. Competitive bidding may be waived subject to the following process: 1. Staff (usually a department head) identifies an urgent need and requests that the City Manager declare an emergency. 2. Upon approval from the City Manager, the department authorizes work and/or equipment procurement required to address the emergency. 3. Department drafts a memorandum explaining the basis for the emergency and the selection of the particular vendor. This memorandum should be included in the contract file. 4. Request that the Legal Department draft a contract. 5. Department schedules the contract award on next City Council agenda. City Attorney and department head prepare materials necessary to ratify the emergency declaration finding. 8 2.1 Initiate a New Procurement The City makes many small and large purchases over the course of the year and must comply with State and local laws for each type of procurement, based on type of work, dollar limits, and level of risk involved. See the matrix at the beginning of this manual for a summary of the types of new procurements typically performed at the City of Port Townsend. City staff may also initiate new procurements through purchasing card purchases (see Section 6.0) and by requesting reimbursement for purchases made with the employee's personal funds. It is recommended that employees use a purchasing card for small purchases whenever practicable and allowed by City policy. 2.2 Purchases of Goods, Supplies, & Equipment 2.2 (a) SMALL Purchases of Goods, Supplies, & Equipment ($7,500 or less) Small purchases of goods, supplies, materials, and equipment $7,500 or less can be made using one of the following processes: Purchasing Card (see Contact '0111 Business -related Alcohol, capital Section 6.0) Finance if you purchases of equipment, cash need to know goods and advances, consulting It isstrongly reca ended your limits. services (i.e., services, personal you use a City purchasing subscriptions, items, professional card vs. personal credit card Sample limits: seminars, meeting services, meals while All receipts must be retained $500 single supplies, traveling and turned into supervisor purchase; maintenance, for approval. $1500 repair, monthly billing operations, office cycle limit supplies, computer Exceptions may peripherals, be made with software the Finance subscriptions) Director's approval 9 Personal/employee Up to $1,000 Incidentals such Regular business - Reimbursement as postage, ferry related goods and Personal credit tolls, parking fees, services card use must hotel fees, CDL be approved by license, etc. dept. head. Vendor Invoice $7,500 Contracted Capital expenditures supplies All invoices MUST be addressed and/or shipped Goods at low risk to the City of Port and not otherwise Townsend and have an covered under a invoice number, date of contract or purchase, and description purchase order of item purchased. Although there are no bidding requirements for goods purchases between $500 and $7,500, it is recommended that City staff obtain estimates from three vendors, preferably off the MRSC Vendor Roster. Staff may also use a State contract or interlocal agreement ("piggybacking"). The applicable department head or designee has invoice signing authority. Purchases of goods under $500 do not require quotes, but staff may solicit estimates from the MRSC Vendor Roster or use a State contract or interlocal agreement ("piggybacking"). The applicable department head or designee has invoice signing authority. All payments made by a check issued by the Finance Department require a W-9 from the vendor. 2.2 (b) INTERMEDIATE Purchases of Goods, Supplies, & Equipment ($7,501-$15,000) Purchases of goods, supplies, materials, and equipment from $7,501 to $15,000 should be made using a purchase order if over $10,000 and a vendor invoice for payment. Purchases in this category could also be made using a State contract, interlocal agreement, or formal sealed bidding. Employees may not use a purchase card or personal payment for reimbursement unless previously approved by their department head and within card limits. When making purchases from $7,501 and $15,000, staff should obtain at least three telephone or written quotations from vendors on the MRSC 10 Vendor Roster. The applicable department head has invoice signing authority. A purchase order or written agreement may be required. Check with the Finance Department for additional requirements. All purchases in this category require a W-9 from the vendor. 2.2 (c) LARGE Purchases of Goods, Supplies, & Equipment ($15,001 or more) Per .u. .W.... 2 3 3 5: (a).., any purchase of material, supplies, and equipment with a cost exceeding $15,000 requires formal, competitive bidding or the use of a State contract or interlocal agreement. Formal Bidding Process: 1. Identify grants or federal Notify Accountant in Finance funds as applicable 2. Prepare bid documents Include: • Invitation to bid • Instructions and information for bidders • Bid proposal template • Bid bond template • Bidder's statement of qualifications template • Sample contract • Insurance requirements Contact Legal Dept. to review prior to finalization of bid package 3. Prepare product Considerations: warranties, delivery, liquidated specifications damages 4. Advertise, publish, and Advertise in official newspaper notify Publish bid on Builder's Exchange Email notification to recommended roster participants (if any) 5. Addenda required? Department to write addenda, notify plan holders, and post online 6. Schedule & conduct bid Department to schedule conference room and opening open and read sealed bids 11 7 Bid Award Determine the lowest, responsible, responsive bidder Prepare Council agenda materials if $30,000 or more Prepare purchase contract (or contact Legal Department if needed) Obtain vendor signature and forward to Legal Assistant Give Legal Assistant or Finance BARS code and request purchase order/encumbrance. Obtain W-9 for Accounts Payable Do not notify non -selected bidders about award until contract is fully signed The City Manager has signing authority for purchases less than $30,000. All purchases totaling $30,000 or more require City Council approval. Consider the entire cost of the purchase for all years (for example, maintenance costs) involved when determining the approval level. Contact the Finance or Legal Department with questions on total contract value. All purchases in this category require a W-9 from the vendor. 2.3 Food and Beverage Purchases Generally, consuming food and beverages at public expense will be discouraged. The consumption of nourishment is ordinarily regarded as private and personal and not a public activity. (This includes light snacks.) In the occasion where food and beverages are approved for purchase, in all circumstances the department head and/or the City Manager must pre - approve the purchase(s) and the department must have adopted budget appropriations. The following outlines circumstances when the City will provide for the consumption of food and beverages: 1. Meal reimbursements while in travel status. Please refer to the City of Port Townsend Personnel Policy Manual, Section 5.7 for meal per diem policies. 2. Light refreshments and/or meals maybe purchased by the City when: 12 • Employees or officials attend a special meeting, training, or similar circumstance where the purpose of the event is to discuss City business, AND • It provides benefit to the City, AND • The refreshments are an integral (necessary) part of the meeting or training session for the employee or official to receive the full benefit of the meeting and/or training. (e.g., a working breakfast, lunch, or dinner), AND • The meeting or training session takes place away from the employee or official's regular workplace, AND • Receipts for actual costs of the refreshments/meals are kept with documentation of who was in attendance and the purpose of the meeting or training session. 3. In emergency situations when a department head determines that employees or intergovernmental employees performing critical City functions must remain at their workplaces, providing refreshments/meals will be allowed if the department head pre - approves the purchase. 4. Meals and/or refreshments for employee, official, volunteer, wellness, public, or occasional appreciation events when: • The City Manager and/or department head has approved the purchase(s) in advance and documentation of such is evident, AND • Receipts for actual costs are kept with documentation of who was in attendance and the purpose of the event, AND • The meal/refreshment purchases for the event is approved through budgeted appropriations. Prohibited purchases of refreshments include the following circumstances and will not be reimbursed by the City: 1. Meals and/or refreshments that were not pre -approved by the department head and/or the City Manager. 2. Meals and/or refreshments that were not approved in budgeted appropriations. 3. Purchase of alcoholic beverages. 13 2.4 Piggybacking (State Contracts and Interlocal Purchasing Agreements) State Contract Piggybacking Process The City has signed a master contract with the Washington State Department of Enterprise Services (DES) to use the State's contracts for goods and services. When using a State contract, we are "piggybacking" off their competitive process, eliminating the need to perform our own. The City encourages the use of these contracts whenever possible. 1. Review State contract Contact Finance Department with process website for piggybacking questions requirements 2. Contact vendor to verify Obtain details regarding all aspects of purchase, they will honor State including invoicing, availability, delivery, etc. contract pricing 3. Contact Finance Dept. Finance or Legal Asst. will develop a purchase order for the good/service if contract value > $10,000 or otherwise required by the vendor 3. Contact buyer to place Place order and process invoice for payment. order Provide Finance Department with BARS and It is highly recommended State contract number for purchase order that all agreements to use the .State pricing are documented in writing State contracts include standard terms and conditions. When piggybacking off a State contract, all State contract terms and conditions apply. Contact the Legal Department if any contract terms do not suit the City's needs. Only certain particulars can be changed, such as quantity and delivery terms. Interlocal Purchasing Agreements The process described above for State contracts can also be used to purchase goods and services through other agencies' contracts. However, the following additional steps must be taken by City staff: 1. Read the other agency's contract carefully to confirm that it allows other agencies to use it. 2. Document that the purchase was made according to the other agency's bidding requirements and our bidding requirements. Contact the Legal Department for assistance. This is best done by 14 requesting and retaining copies of all bid documents from the other agency. 3. Confirm that the City has a current interlocal purchasing agreement with the agency before making the purchase. 4. If we do not have an agreement, contact the purchasing coordinator at the other agency to request one. Contact the Legal Department for assistance in processing the agreement. Note: Be particularly careful about documentation when piggybacking off a contract from an out-of-state agency or a different type of agency (for example, a school district or port district). The authorization limits shown on the matrix at the beginning of this manual apply to purchases through State contracts and Interlocal Agreements. 2.5 Public Works Bid Limit: According to II�'''...°.;r,..:.:�."�,, a second-class city, such as Port Townsend, may construct a public work by contract or by day labor (City staff) without callingfor bidswhen the estimated cost of the workwill not exceed $116,155 if more than one trade is involved or $75,500 if a single trade is involved. When the cost of a public work exceeds these figures, the project should be done by contract through formal sealed bidding, except that the City may use the small works roster process for projects up to $350,000. Determining the Cost of a Public Work: The total construction cost of each project must be estimated in order to correctly apply bid limit dollar amounts to determine if public works project must be competitively bid. This estimate may be prepared by an outside third party; however, the final cost estimate must be validated by the City. The total construction cost (estimated as if the project were to be bid) should include materials, supplies, equipment, and labor for that project AND applicable sales and use taxes. However, the value of volunteer labor, donated materials, or donated equipment need not be included in the cost estimate for a public works project, as these are not a cost to the City. For projects completed by any means other than a contract or small works roster process (for example, using City workers) having an estimated cost exceeding $25,000, the City must publish a description of the project and its estimated cost in the official newspaper at least fifteen days before beginning work, as required by 11 ' 3 .,Q� ,.0 2 Q . 15 Bid Splitting: I.:.I. _ 3!�„µ 2; !! 2 ).,, prohibits the division of a project into units of work or classes of work to avoid the restriction on work that may be performed by day labor on a single project. Small Works Roster: When the estimated cost of a public works project is $350,000 or less, the City may follow the small works roster process for construction of a public work or improvement as an alternative to the general competitive bidding requirements, in accordance with R. . �OA 1.,. . The City of Port Townsend has contracted with the .M u_na dI.p a uI s r Ih _n_d a rvuces Center of..� «�sI�u�u „t n (I „��5�) for use of its statewide electronic database for small public works contractors, vendors, and consultants. Publication: At least once a year, on behalf of the City, MRSC publishes notice in local newspapers of the existence of the rosters and solicits the names of contractors for the rosters. Responsible contractors can be added to the appropriate MRSC roster(s) at any time that they submit a written request and necessary records. The City may require contracts to be signed when project awards are made using a small works roster. 2.6 Limited Small Works Process (Public Works Projects under $50,000) If a public work, construction, alteration, repair, or improvement project is estimated to cost less than fifty thousand dollars ($50,000), the City may use the limited public works process instead of formal, competitive bidding, as provided in RCW 39.04.155(3). Process: 1. Develop a scope of work describing the nature of the work to be performed and materials and equipment to be furnished. Detailed plans and specifications need not be included in the invitation. 2. Solicit at least three contractors on the MRSC Small Works Roster forthe applicable category or categories. Requests for estimates should include the date, time, and location to return the estimate. Notify contractors that: a. they must pay prevailing wage; b. the City must equitably distribute opportunities among contractors in the geographic area; c. the City will require a performance bond and a payment bond, each for the total cost of the project; and 16 d. the City will hold 5% retainage until releases are received from the State (RCW 60.28.011), unless waived by staff member with contract signing authority. Note: The City staff member with contract signing authority may waive the bond and retainage requirements; however, contractors must be notified about this waiver in the request for estimates and/or advertisement for the project. Note: If payment and performance bonds are required, the contractor may choose to have 10% retainage held instead of obtaining bonds. 3. Determine the lowest responsive, responsible bid. 4. Send the Legal Assistant copies of all estimates or a list of all contractors contacted and their bid amounts. (We are required bylaw to maintain a list of contractors contacted under the limited public works process.) 5. The Legal Assistant will make sure the contractor meets all bidder criteria and will draft a contract. 6. If project total is over staff signing authority, contact the City Clerk to schedule contract approval on an upcoming City Council agenda. 7. After Council approval, send the draft contract to the contractor along with a request for items identified by the Legal Assistant (for example, W-9 and proof of insurance). Note: All projects require a W-9 from the contractor. Alternative to Process: Local governments may waive retainage but must assume liability of contractors for non-payment. The local government has the right of recovery from the contractor. 2.7 Small Works Roster Process (Public Works Projects $350,000 or less) If a work, construction, alteration, repair, or improvement project is estimated to cost $350,000 or less, the small public works process may be used instead of formal, competitive bidding, as allowed by a Process: 1. Develop a scope of work describing the nature of the work to be performed and materials and equipment to be furnished. Detailed plans need not be included be included in the invitation. 17 Note: For projects totaling $250,000-$350,000, all contractors in the applicable category must be notified that the project is being bid, even if they are not invited to bid. 2. Contact at least five contractors on the MRSC Small Works Roster for the applicable category or categories. Requests for estimates should include the date, time, and location to return the estimate. Notify contractors that: a. they must pay prevailing wage; b. the City will require a payment bond and a performance bond, each for the total cost of the project; and c. the City will hold 5% retainage until releases are received from the State (RCW 60.28.011). Note: The City staff member with contract signing authority may waive retainage requirements, however, contractors must be notified about this waiver in the request for estimates and/or advertisement for the project. Note: For projects totaling $150,000 or less, the contractor may choose to have 10% retainage held instead of obtaining bonds. Note: The city will retain the right of recovery from the contractor if retainage is waived. 3. Determine the lowest responsive, responsible bid. 4. Send the Legal Assistant or Engineering staff (for capital projects) the estimate for the lowest bid and expected project dates. (The City's "Small Works less than $350,000 Documentation Form" may be used.) 5. The Legal Assistant or Engineering staff will make sure that the contractor meets all bidder criteria and will draft a contract. 6. Contact the City Clerk to schedule the contract approval for an upcoming City Council meeting. 7. Draft agenda bill and resolution, if applicable, and send to City Attorney for review. 8. After Council approval, send the draft contract to the contractor along with a request for items identified by the Legal Assistant or Engineering staff, such as proof of insurance and a W-9. 2.8 Formal, Competitive Bid Process (Required for Public Works Projects over $350,000) Formal, competitive bidding must be used for all public works projects over $350,000; however, it may also be used for any projects below this threshold. Competitive bidding is designed to prevent favoritism in awarding public work contracts and to enable local governments to obtain 18 the best work or supplies at the most reasonable prices. It is also designed to provide a fair forum for bidders and to protect the public interest. Bidding process: 1. Coordinate with Accountant in Finance if using grantor federal funds. 2. Draft or work with consultant to draft bid package and send to City Attorney for review. 3. Draft a notice to bid, stating the nature of the work. 4. Notify bidders that bids must be sealed, and a 5% bid deposit is required, in the form of a cashier's check, postal money order, or surety bond. 5. Have the notice to bid published in the City's official newspaper (currently The Leader) at least 13 days prior to the date bids are due. Staff may choose to publish notice in additional newspapers, such as the Daily Journal of Commerce. 6. Post the bid on Builder's Exchange. 7. City Administration receives and date and time stamps sealed bids. 8. Hold a public bid opening after the bid deadline closes. 9. Identify the lowest responsive, responsible bidder. Note: If the contract is not awarded to the lowest bidder, a full and complete statement of the reasons for selecting another bidder must be prepared, approved by the City Manager, and retained in the file. See RCW 35.23.352(2) or Section 2.15. 10. Notify the City Clerk to add approval of the project contract to an upcoming City Council agenda. 11. Draft an agenda bill and resolution, if applicable. Ask the City Attorney to review. 12. Following Council approval, ask the Engineering Dept. (capital projects) or Legal Assistant (other projects) to draft a contract. 13. Send draft contract to contractor with request for additional items identified by Engineering staff or the Legal Assistant. 14. After the contract has been fully signed, send a copy to the contractor and return all bid bonds, except for the one submitted by the successful bidder. 2.9 Equipment Purchases Including Installation R "�.. ,,, 52(„,j, prohibits the division of a public works project into units of work or classes of work to avoid the restriction on work that may be performed by day labor on a single project. Occasionally projects include the direct purchase of equipment separate from the installation. For example, the City purchases equipment for 19 $50,000 off a State contract, and the installation is estimated to cost $25,000. How do we bid this project? Because we cannot split public works into units to avoid the bidding process, we must combine the cost of the two purchases and treat them as one to establish the "project cost." In this example, the cost of the entire project is $75,000 (equipment @ $50,000 + installation @ $25,000), which exceeds the City's limited public works bid threshold of $50,000. Therefore, the public work installation must be awarded using the small works process or formally bid (see Sections 2.7 and 2.8 above). The purchase of the equipment can be made using the State contract (see Section 2.4 above). What kind of contract do we use? For this project, because the public works installation is under $350,000, we would use a small public works contract. Usual contract requirements that apply to small public works projects apply to this project. Because the total project cost is $75,000, this contract would have to go to City Council for approval. There are so many variables to this type of purchase that it would be difficult to highlight every possible scenario. Please contact the Finance Department or Legal Department for assistance. Approval Process: Refer to the Public Works section of the matrix at the beginning of this manual. 2.10 Unit Priced Contracts RCW 35.23.352 allows the City to use unit priced (or on -call) contracting for public work projects that are expected to happen on a recurring basis, such as tree trimming, road resurfacing, or public facility maintenance. Unit priced contracts means a competitively, bid contract in which public works are anticipated on a recurring basis to meet the business or operational needs of the city or town, under which the contractor agrees to a fixed period indefinite quantity delivery of work, at a defined unit price for each category of work. Whenever possible, the city must invite at least one proposal from a certified minority or women contractor who otherwise qualifies. Unit priced contracts must be executed for an initial contract term not to exceed three years, with the city or town having the option of extending or renewing the unit priced contract for one additional year. Invitations to bid for these contracts shall include, for purposes of the bid evaluation, estimated quantities for the anticipated types of work and specify how 20 the City will issue or release work assignments, work orders, or task authorizations based on the hourly rates or unit prices bid by the contractor. Contracts must be awarded to the lowest responsive, responsible bidder. Unit priced contractors shall pay prevailing wages and update rates annually. Intents and affidavits for prevailing wages paid must be submitted annually for all work completed within the previous twelve-month period of the unit -based contract. Note: The City is also allowed (by BCI1 39.10.420) to obtain public works services by job order contracts; however, these contracts are for a broader scope than unitpriced contracting and require that 90% of the work be performed by subcontractors. Please consult with the City Attomq, for more information. 2.11 Services There are three types of services that the City may need to obtain: 1. Professional services (also called personal services) are provided by independent contractors with specialized knowledge, advanced education, professional licensing, or certifications; the primary service provided is mental or intellectual, involving the consistent exercise of judgment and discretion. 2. General services (also known as purchased services) include all service - related work not considered a public work or professional service. Most often these are routine in nature (i.e. yearly, monthly, weekly, etc.). Examples include courier services, weeding, and vehicle inspection services. State law does not require a competitive process for the selection of general services, with the exception of the City newspaper. 3. Architectural, engineering, land surveying, and landscape architecture services (A&E) are addressed in Section 2.12 below. Section 2.11 does not apply to A&E services. The City uses MRSC's Consultant Roster, which distinguishes architectural and engineering services as defined in RCW 39.80.020 from other consulting services. Consultants can be added to the appropriate roster when they submit a written request and necessary records to MRSC. The City reserves the right to publish an announcement on each occasion when professional or other services are required. To ensure a more competitive process, the City has adopted tighter standards for selection of service providers than required by State law. Unless the City Manager approves in writing an exemption based on the best interests of the City, staff shall follow these guidelines for selection of professional or general services: 21 • Under $5,000— No competitive process required. It is still incumbent on the department to ensure that the price is reasonable, and the provider is qualified. It is recommended to request prices, schedules, and qualifications from three consultants on the MRSC Consultant Roster. • $5,000 to $9,999 — It is highly recommended to request prices, schedules, and qualifications from at least three consultants on the MRSC Consultant Roster. • $10,000 to $19,999 — Request proposals from at least three consultants on the MRSC Consultant Roster (with one having a MWDBE classification when possible) or use an RFP/RFQ process. • $20,000 or more — Formal advertised RFP or RFQ process recommended. Note: Some general services, such as landscaping work, require payment of prevailing wages. Contact the Legal Department with questions. Contract Award Process: 1. Develop scope of work. 2. Determine budget amount for work. 3. If grant funds are involved, check the grant agreement requirements. 4. Obtain proposals or conduct formal bidding as required above. 5. Evaluate the proposals and negotiate a contract with the lowest qualified, responsible bidder. 6. If Council approval is required, contact City Clerk for meeting date. Draft agenda bill and resolution, if applicable, and send to City Attorney for review. 7. After Council approval (if required), contact the Legal Assistant with a copy of the estimate and other relevant information, such as project start and end dates. 8. Legal Assistant will prepare a draft Professional Services Agreement. 9. Send contract to service provider for review and signature, along with request for documents identified by Legal Assistant, such as W-9. 10. Forward signed contract and additional documents to Legal Assistant for processing. 11. Forward fully signed contract to contractor and arrange for project start. Approval Limits: For the approval limits, refer to the Services section of the Purchasing Matrix at the beginning of this manual. 22 2.12 Purchases c f Architectural & Engineering Services Architectural, engineering, land surveying, and landscape architecture services (frequently referred to as "A&E") are to be acquired under the authority and procedures outlined in chapter RCW 39.80. RCW 39.80.030 requires that the City publish advance notice of its need for A&E services. The City may comply with this section by (1) publishing an announcement on each occasion when professional consultant services are required or (2) announcing generally to the public its projected requirements for any category or type of professional service. A&E consultants are initially selected based upon their qualifications, rather than price (see RCW 39.80.050). The City will negotiate a contract with the most qualified firm at a price that the City determines is fair and reasonable. In making its determination, the City shall consider the estimated value of the services to be rendered, as well as the scope, complexity, and professional nature of the project. If the City is unable to negotiate a satisfactory contract with the selected firm for a price the City determines to be fair and reasonable, negotiations shall be terminated, and the City shall begin negotiations with the next highest qualified firm. There are two ways to select an A&E firm based upon their qualifications: 1. Roster statement of qualifications (SOQ) review — Select three or more consultants from the MRSC Consultant Roster in the relevant service category and evaluate their qualifications. Documentation of the three reviews is required. Minority -owned, women -owned, and veteran -owned firms must be given the maximum practicable opportunity to compete for these contracts. 2. Project -specific request for proposals (RFP) — Use the MRSC Consultant Roster to send out an RFP and request for qualifications (RFQ) to consultants in the relevant service category. Minority - owned, women -owned, and veteran -owned firms must be given the maximum practicable opportunity to compete for these contracts. Contract Award Process: 1. Develop scope of work 2. Determine budget amount for work 3. If grant funds are involved, check the grant agreement requirements 4. Public advance notice of need for services, if not already done 5. Obtain proposals or conduct formal solicitation, as described above 6. Evaluate proposals and/or statements of qualifications and select the most highly qualified firm 7. Negotiate final project scope and fees with selected firm 23 8. If project total is over City Manager signing authority, contact City Clerk to add contract approval to upcoming City Council agenda 9. After Council approval (if applicable), request that Legal Assistant draft professional services agreement 10. Obtain consultant's signature on agreement, along with proof of insurance, professional certification (if applicable), and W-9 11. Send documents to Legal Assistant for City signatures and processing Approval Limits: Refer to the matrix at the beginning of this manual. 2.13 RFPs and RFQs Request for Proposals: A Request for Proposals (RFP) is a method of soliciting competitive proposals for a defined scope of work. The proposals would normally include factors to measure qualifications, delivery, and service reputation, as well as price. An RFP is a formal invitation from the City to a company to submit an offer to provide a solution (or proposal) to a problem or need that the City has identified. The supplier's experience, qualifications, and solution may take precedence over the cost proposal to the City. Elements of an RFP: 1. Purpose of RFP (brief description of project) 2. Project background 3. Scope of work or statement of need 4. Goals and objectives 5. Minimum qualifications 6. Technical requirements (if any) 7. Schedule 8. Estimated project budget & request for cost proposal 9. Submittal requirements, including deadline 10. Evaluation process and criteria 11. Insurance requirements 12. Funding sources (if applicable) Evaluation criteria for the submitted proposals should relate to the project's scope of work and stated objectives and should be clearly communicated with the proposers. Request for Qualifications: A Request for Qualifications (RFQ) is a method of soliciting competitive proposals that considers and evaluates companies on the basis of demonstrated competency and qualification rather than price. This process 24 is typically used for architectural and engineering services where price is not a consideration. An RFQ will generally result in negotiations. Elements of an RFQ: 1. Project background and scope of services 2. Project budget and source of funding 3. Schedule 4. Minimum qualifications 5. Submittal requirements, including deadline 6. Selection process/evaluation criteria. Information request of the respondents may include list of principals, previous projects, number of employees, and licenses or certifications. Depending upon the complexity of the project, a typical RFP or RFQ takes around 6-8 weeks to complete. Process for RFPs or RFQs: 1. Identify need Develop scope of services 2. Determine the estimated cost Confirm sufficient budget exists and identify funding source(s) 3. Identify grants or federal funds Notify Finance Dept. (Accountant) 4. Develop draft RFP/RFQ Considerations: • Schedule • Scope of services • Qualifications • Selection process & evaluation criteria • Submittal requirements & deadline • Proposal validity period • Term of contract 5. Finalize RFP/RFQ Contact City Attorney for review, then finalize RFP/RFQ 6. Identify appropriate roster Identify roster category and companies category 7. Advertise, publish, and notify . Advertise • Publish RFP on City's website • Email notification to recommended roster participants 8. Evaluate proposals Department to identify selection committee 9. Conduct interviews Department to schedule 10. Identify "apparently successful Seek management approval to negotiate proposer" with "apparently successful proposer" 25 11. Negotiate contract Goal: reach a mutually advantageous position on issues of concern while fulfilling requirements of contract 12. Award contract Prepare council agenda materials, if applicable, and contact Engineering or Legal Assistant for draft contract when approved 2.14 Bid Opening Process Bid Due Dates Time is of the essence. It is important to make the bid submittal deadline clear in the bid documents. For example: "The bid form will be received up to 3:00 p.m. on April 27, 2020. Bids received after that date and hour, based on the time on our atomic clock, will not receive consideration." For example, if a bid is due at 2:00 P.M., a bid received at: • 1:59 p.m. is on time • 2:00 p.m. is on time • 2:00:01 p.m. is late If a bidder insists on submitting a bid after the deadline and leaves it, do not open it. Make a photocopy of the bid envelope with the time stamp and immediately return the bid by certified mail, return receipt requested. Equal Treatment of Bidders Avoid giving bidders an advantage to include: permitting bidders use of private offices and conference space for finalizing bid prices, providing envelopes for bidders to use in sealing the bid, or permitting bidders to use the agency's telephone, computer, fax, or photocopier. Avoid disclosing the names of bidders or the total number of bidders until the bid opening. Receiving Bids Checklist • Is the bid in writing? Do not accept bids by fax, email, telephone or orally unless the bid solicitation allows for it (generally not allowed for formal, competitive bidding). • Did the bidder attend the mandatory pre -bid meeting, if applicable? • Is the bid envelope sealed? Offer tape if not sealed. • Is the correct information on the envelope? • Is the time stamp clear? • Is the time stamp prior to deadline? • All received bids should be kept in a secure and centralized location not accessible to other bidders. 26 Withdrawal & Modification of Bids • A request to withdraw or modify the bid in advance of the deadline may be received verbally or in writing. If unfamiliar with the bidder, ask for identification. • Make a photocopy of the face of the bid envelope, ensuring the bid receipt time shows up on the copy. • Have the bidder sign the photocopy with the following "Received by (signature, printed name, date, time)." • Keep the original signed photocopy. • Remove the bid receipt stamp or cross it out on the face of the bid envelope. • Return the bid to the bidder, notifying the bidder that if they choose to resubmit the bid, it must be received prior to the bid submittal deadline and stamped in again with a new time and date stamp prior to the deadline. Modifying Bids from a Distance The bidder may submit additional information modifying a previously submitted bid if the modification is: • Received in writing. • Signed by an authorized representative of the bidder. • Received prior to the bid receipt deadline. • In a sealed envelope. • Clear in stating what prices are being changed. Subcontractor's List Due either with the bid or within one hour of the bid submittal deadline (RCW 39.30.060). Opening the Bids Bids should be opened in a public meeting. Read each bid before opening the next one. Consider using one person to open the bids and a second person to read. The project manager staff should record the prices on a bid tabulation form. The bid reader should state publicly all the information noted in looking at the bid, without passing judgment whether it is responsive or non -responsive, to include: • Name of bidder • Is bid form signed? • Bid amount • Is bid guaranty included? • Are addenda acknowledged? • Is subcontractor's list included? 27 The bids will be evaluated for responsiveness after the bid opening. If a contractor wishes to review the bids after the bid opening, allow only one contractor at a time to review the bids in a monitored environment. 2.15 No Bids or Non-Responsive/Responsible Bids or Submittals No Bids or Submittals Received: As provided in RCW 35.23.352(1), in the event the City does not receive any bids or submittals on the first call, the City has three options: (1) re -advertise and make a second call, (2) enter into a contract with any qualified contractor, or (3) purchase the supplies, materials, or equipment and perform such work and improvement by day labor (City staff). Before determining which option would best fit, the department should conduct a survey of the registered bidders or proposers or any other known interested parties to determine: 1) why they didn't they submit, 2) whether the City's document too restrictive or too complex, 3) if there ample time to submit, and 4) if there too many open questions before the due date. The City Attorney may be consulted for additional assistance in determining the best option. Determining Lowest Responsible Bidder: The City should award the contract for a public works project to the lowest responsible bidder, unless the lowest bid is above the budget for the project. In that case, all bids may be rejected, and the City may call for new bids. A responsible bidder shall be a registered and/or licensed contractor who meets the mandatory bidder responsibility criteria established by RCW 39.04.350 and who meets any supplementary criteria established by the City. According to RCW 35.23.352(2), the City may award a contract to the second lowest bidder if: (1) the bid is within five percent of the lowest bid, (2) the second lowest bidder meets the same criteria as the lowest bidder, AND (3) the City has issued a written finding to the lowest bidder within the last three years that the lowest bidder was late, over budget, or did not meet specifications, and the City has not found in writing that the lowest bidder has shown how they would improve performance. Non -Responsive and/or Not -Responsible: The City shall draft bidder responsibility criteria that are based upon clear business reasons, and the criteria must not be overly restrictive of the bidding pool. Note that in Washington State, a bidder who objects to the 28 supplemental bidder responsibility criteria may request that the City modify the criteria before the bid submittal deadline. Bids may be rejected as non -responsive for a multiple of material factors, including lack of subcontractor's list when required (for contracts in excess of $1M or contracts of three or more trades), insufficient bid guarantees, bids submitted after the deadline, qualified bids, and/or lack of acknowledgement of addenda. In general, a material irregularity is required before the bid may be deemed non -responsive (defined as any variance which provides "a bidder substantial advantage or benefit not enjoyed by others"). In the event the City receives a bid or submittal on the first call that is deemed non -responsive or non -responsible, the department shall consult with the City Attorney to determine whether it is a material or immaterial irregularity. Each project will be evaluated on a case -by -case basis. Bid Protest: The City follows the bid protest guidelines established in RCW 39.04.105. 2.16 Contracting 101 A contract is a written agreement between two or more people or entities to accomplish a specific outcome. In a public purchasing context, a contract is an agreement by a vendor or contractor to provide goods or services to the City in return for receiving payment from the City. The following is an overview of the contract process: Invitation: • A solicitation (ITB, ITQ, or RFP) is an invitation to a contractor to make an offer. • These are most often directed at multiple parties and outline the needs of the City. Offer: • The contractor's returned quote/bid/proposal is their offer to the City to perform the work, outlining what and how much. • The offer shows that the contractor is willing to agree to specific terms. • The offer is given to a particular party. • The contractor has made an offer to do what the City requested for a specific price. Acceptance: • The City must now accept one of the offers. 29 • The acceptance is a communication showing agreement to the exact terms of the offer or a contract. • Contracts must show that the offer made by the contractor has been accepted, usually by attaching the contractor's estimate or scope of work and fee schedule. 30 3.1 Rule 171 — Sales Tax Exemptions Normally sales tax applies to every sale of tangible personal property (and some services) to all persons, including cities. Thus, for bid limit purposes, the tax must be included when determining the cost of a public work or when calculating the cost of materials, supplies, and equipment purchases separately from a public work. However, there are some sales and use tax exemptions for certain public work projects. The exemptions include: 1. Labor and services rendered for the building, repairing, or improving of any street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle owned by a city ortown which is used primarily for pedestrian or vehicle traffic ( RCW 82.04.050(10). See also WAC 458-20-171, nicknamed "Rule 171.") Materials used in constructing these projects are not exempt from the sales and use tax. 2. Labor and services for the processing and handling of sand, gravel, and rock taken from City pits and quarries when the material is for publicly -owned road projects ( RCW 82.08.0275 and WAC 458-20- 171). 3.2 Prevailing Wages What are prevailing wages? The Department of Labor and Industries (L&I) requires that workers be paid prevailing wages when employed on all public works, public building service maintenance, and contracted maintenance, based upon the classification of labor performed. Prevailing wages are defined as the hourly wage, usual benefits, and overtime paid in the largest city in each county, to the majority of workers, laborers, and mechanics. Prevailing wages are established by the Department of Labor and Industries for each trade and occupation 31 employed in the performance of public work. They are established separately for each county and are reflective of local wage conditions. What are the responsibilities of the City when contractingfor public works? The City, in awarding a contract, must make the determination of whether that contract involves "public work" and communicate it to contractors in the bid specifications and contracts. What provisions must be made for prevailing wage? Awarding agencies must stipulate in bid specifications and contracts for public work that workers shall receive the prevailing rate of wage. Those documents must either contain a list of the applicable prevailing wage rates or a link to the rates on L&I's website. If including a link, print the current rates and keep with the project file. What are the public building service maintenance contract requirements? Public building service maintenance (janitorial) contracts of more than one- year duration must include wage language recognizing the potential for future variance in applicable prevailing wages each year after the first year of the contract. What are awarding agency requirements when disbursing public funds? Agencies may not make any payments where contractors have not submitted an Intent to Pay Prevailing Wage form that has been approved by L&I. Agencies may not release final payment until all contractors have submitted an Affidavit of Wages Paid form that has been certified by L&I. The requirement to submit these forms should also be stated in the contract. What are the contractor's filing requirements? Public work contracts require that each and every contractor and subcontractor on the project file the "Statement of Intent to Pay Prevailing Wages" and "Affidavit of Wage Paid" forms. Is there a minimum contract amount for a contractor to file? There is no minimum dollar contract amount. Intent and Affidavit forms are required for every public works contract regardless of the size of the contract. When does the contractor file an Intent? The Intent form is filed immediately after the contract is awarded and before work begins, if that is possible. When does the contractor file an Affidavit? The Affidavit form is not filed until after all the work is complete. 32 3.3 Retainage What is the purpose of retainage? The City retains a portion of the contract amount for public works contracts as a trust fund to pay any claims associated with the contract and/or for payment of amounts due by the contractor to the Department of Labor and Industries, the Employment Security Department, and the Department of Revenue (RCW 60.28.011). What level of retainage is required? The City generally retains 5% of the contract amount. However, for contracts awarded by the small works roster process and totaling less than $150,000, contractors may opt to have 10% retained in lieu of a obtaining a performance bond. The City may alternatively choose to waive retainage requirements for any small works roster contracts. Retainage is not held for projects funded by federal transportation funds. What are the retainage options? The City retains the funds in a City fund, unless otherwise requested by the contractor. A contractor may choose to have the funds deposited by the City into an interest -bearing account or placed by the City in escrow with a bank or trust company. If the escrow option is selected, contact the City Attorney for an escrow agreement. When can retainage be released? Retained funds will be released afterfinal acceptance of the project and after the City has received all releases from the Department of Revenue, the Department of Labor and Industries, and the Employment Security Department. Upon receipt of all releases, the project manager should notify the Legal Assistant to release the funds. For projects under $35,000, the retained funds will be released when the Department of Labor and Industries has approved the contractor's Affidavit of Wages Paid. Is the City liable for payment of project costs to subcontractors if waiving retainaee? Local governments may waive retainage but must assume liability of the contractor's non-payment. The Local government does retain the right to recovery from the contractor. 33 4.1 Risk Management Considerations The City enters into numerous contracts throughout the year. These contracts involve risk. City property can be damaged. Employees of the City, contractors, subcontractors, and suppliers can be injured. Members of the public can be harmed. These and other accidental losses can arise during and as a result of the activities during the contract fulfillment process. The City seeks to transfer responsibility to such events to those with whom it contracts. The City's approach to contracting is designed and managed to avoid undue exposure to risk with exceptions where it makes good business sense. Certificates of insurance and endorsements naming the City as an additional insured are required from all contractors and consultants who contract with the City. Verification of appropriate insurance requirements shall be completed prior to signing of the contract by the City. Any waiver of insurance requirements requires the approval of the person with signing authority for the contract (generally the City Manager). Contact the City Attorney with questions about insurance requirements or for advice on the risk of a requested waiver. 4.2 Payment Options Prior to contract award, payment terms should be identified to determine the most effective compensation method. The most common include: Hourly/Time and Materials: The City pays a fixed hourly rate and pays for the cost of certain specific services and/or materials. For certain professions, such as consultants, this is the standard option. Time and materials contracts should have a ceiling amount or a not to exceed amount included. This type of payment term may be used if the City is unable to clearly define the level of effort required to accomplish the objectives. A time and materials contract places most of the risk on the City and little on the contractor and provides no positive profit incentive to the contractor for cost control or labor efficiency. Frequent contract monitoring is required to ensure that the number of hours is kept to a reasonable level. 34 Fixed or Lump Sum: The contractor receives a fixed amount or lump sum payment based on terms established in the contract. Typically, payment is tied to a completion of agreed upon performance achievements. Other alternatives are possible, such as progress payments made to compensate for activities conducted over the specific period of the contract. This type of contract should generally establish a minimum allowable level of compensation. With this method of compensation, the City may not be required to pay if specific terms in the contract are not met and thus the risk is placed on the contractor. Cost Reimbursement: A cost reimbursement method of compensation has a higher risk for the City because it reimburses the contractor for all costs incurred under the terms of the contract. To prevent overpayment, allowable cost provisions should be clearly identified. Contract managers should consider including a contract provision for a maximum allowable compensation level for the contract period and budget. Cost reimbursement contracts generally require more fiscal pre -planning and monitoring than other methods. Performance Based: These contracts are based on attainment of a specific outcome. The rate of compensation is generally negotiated based on cost information provided by the contractor. Generally, performance -based contracts identify the maximum allowable compensation. This allows the City to define the quality of services in terms of performance standard and pay accordingly. Performance based contracts differ from time and materials or fixed price contracts in that if the quantifiable quality of service is low, the payment may be reduced or withheld. This requires a higher level of reporting from the contractor to the City. The contractor primarily assumes the risk because the City does not pay if performance levels are not met. 4.3 Contract Execution & Administration Contract Execution: The contract is fully executed when all authorized parties have signed it. Upon execution, signed copies of the contract should be provided to all interested parties including, at a minimum, the contractor and Legal Assistant. Contract Administration: Contract administration means any activity related to contracting, including the decision to contract, contractor screening, contractor selection, contract 35 preparation, contract monitoring, auditing and post contract follow up. Typical responsibilities of the project manager include: • Understanding the contract, including the specific contract obligations and performance indicators by which performance will be monitored. • Assessing the risks related to the project before soliciting proposals and contracting to determine the extent of the monitoring required. • Ensuring the contractor has a clear understanding of how the contract will be managed and monitored. • Providing the contractor with guidance and technical assistance, as needed, to promote effective contract performance. • Identifying the extent and source of funding for services provided. • Monitoring the contractor's activities to ensure quality service delivery. Ensuring funding is used only for authorized purposes. • Reviewing invoices and verifying that delivery of services is rendered. • Resolving issues or problems that arise during the contract. • Measuring and tracking satisfaction with contractor performance. • Complying with State and City rules and regulations. • Documenting the contract to validate that effective contract management has occurred. Project managers need to be mindful not to do the following: • Instructing the contractor to begin work before the contract is executed and approved. • Changing the description, scope, period of performance, or cost of the contract without processing a written amendment. • Directing the contractor to do work that is not specifically described in the contract. • Signing a contractor's contract form (some exceptions apply) • Authorizing payment to the contractor for any work not performed satisfactorily. • Paying for the same or similar services more than once. 4.4 Contract Monitoring - Performance Monitoring Contract Performance: Monitoring means any planned, ongoing, or periodic activity that measures and ensures contractor compliance with the terms, conditions, and requirements of a contract. The level of monitoring should be based on a risk assessment of the contractor's role in delivering the services and the contractor's ability to deliver under the terms of the contract. 36 The purpose of monitoring is to ensure the contractor is: • Complying with the terms and conditions of the contract and applicable laws and regulations. • In compliance with the contract through identifying and resolving potential problems and providing constructive, timely feedback. • Adhering to the project schedule and making appropriate progress toward the expected results and outcomes. • Providing the quality of service expected. Monitoring Activities May Include: • Periodic contractor reporting — Require the contractor to submit progress reports or other appropriate data or reports, based on pre- defined criteria, and review the contractor's reports for verification of services provided and adherence to the contract. Substandard performance should be identified and addressed timely and appropriately. • Invoice review — Compare billings with the terms agreed upon in the contract. Ensure the costs being charged are within the contract parameters. • Other periodic contact with contractor — On -site visits to maintain contact with the contractor to review progress on a regular basis. Good contract monitoring includes a continuous dialogue with the contractor. 4.5 Contract Monitoring - Payment Reviewine Invoices for Pavment: Contract payment is the process by which the contractor submits invoices for reimbursement for services and receives payments. The contract manager must carefully review the contractor's request for payment to verify the accuracy of all charges. Considerations: • Are the hours/costs commensurate with the services or deliverables received? • Is the service period identified on the invoice and were the services rendered prior to contract expiration? • Do the rates invoiced match the rates stated in the contract? • Has the necessary documentation been included to verify charges accurately? Is there enough money remaining on the contract? • Reimbursable expenses. Below are the recommended reimbursable expenses: o Travel o Mileage 37 o Food o Miscellaneous expenses If charges are acceptable, the contract manager submits a claim approval form for payment. Payment terms are 30 days from date of invoice. 4.6 Amendments & Change Orders Amendments: Amendments are changes to service contracts. Changes to contracts may be processed as amendments, rather than new contracts, but only if the changes are within the general scope of the original contract. Change Orders: A change order is the formal document that alters some condition of the contract documents. The change order may alter the contract price, schedule of payments, completion date, terms and conditions, or the plans and specifications. Change orders are changes to public works contracts and reflect unforeseen conditions that must be addressed to meet the contract requirements and without which the work requested in the original contract could not be completed. Minor modifications that do not materially affect the scope or cost of the contract, such as address changes or staff changes, do not require a formal change order but should be documented in writing. These situations should be distinguished from extra work that could stand on its own and is outside and independent of the contract, in which case a new competitive bid process is required. Appropriate uses of change orders include: Scope — Scope changes may include adding, modifying, or deleting tasks, services, or deliverables or revising specifications. Changes to scope should be well documented and include any additional costs associated with these changes. Changes that are outside the general scope of the contract or bid request are not appropriate to award through contract change orders. Such changes would have the effect of making the work performed substantially different from the work defined at the time the original contract was awarded. Terms and Conditions —Changed conditions could include price variations in commodities. Cost — If the cost of the contract is increased or decreased, document reasons for change (e.g.: scope changes, changes to unit price items). Period of Performance — An extension to the contract end date is the most common change to the period of performance. Minor modifications that do 38 not materially affect the scope or cost of the contract, such as address changes or staff changes do not require a formal change order but should be documented in writing. Amendment and Change Order Approval: • Amendments and change orders that do not change the total value of the agreement contract (i.e.: a new expiration date) may be signed by the City Manager or designee. • Accumulated cost changes up to 10% of the original agreement or contract amount may be approved by the City Manager or designee, if there is budget capacity and available revenues. • Accumulated cost changes greater than 10% of the original agreement or contract amount must be approved by the City Council. Such approval establishes a new agreement or contract amount against which the above percentages apply for subsequent amendments or change orders. • The City Council may pass a resolution on an individual project giving the City Manager the authority to sign all amendments and change orders within the allotted project budget, superseding the 10% limit. To protect the City's interests, all amendments or change orders shall be executed in writing prior to the end of the contract period of performance and before the contractor begins work as authorized by the amendment. 4.7 Contract Close -Out & Termination Contract Termination: Contracts may be terminated prior to the completion date of the contract either for convenience of the parties or for cause. Contact the CityAttorney's Office for guidance when considering a contract termination. Contract termination should be done in writing and follow the process described in the contract or as advised by the City Attorney. Contract Close -Out Process: Once the contract is complete, it is critical that the project manager complete the close-out process in a timely manner and stay on a schedule. 1) Notice of Completion of Public Works Contract. Required for projects totaling $35,000 or more. The project manager should complete and file a "Notice of Completion of a Public Works Contract" form with the Department of Revenue, Department of Labor and Industries, and Employment Security Department. This form is available on L&I's website. 39 2) Receive release letters from Employment Security Department, Department of Revenue, and Department of Labor & Industries. These letters will be sent either by mail or through that department's web portal. 3) Release retainage. Once the above -mentioned letters are received, the project manager should request that the Finance Department release retainage by a memo or coversheet along with a copy of the letters received. a) Release retainage bond. If the contractor provided a bond instead of having the City hold retainage, the project manager should contact the bond issuer to release the bond. b) Escrow release. If the contractor requested that the City hold retainage in an escrow account, the project manager should provide a written release to the bank. Liens Whenever a valid lien has been filed against the retainage, the City may only release that amount of the retainage in excess of the total amount of the valid lien claims and an amount sufficient to defray the costs and attorney's fees of the claimants in foreclosing the liens. Invoices Submitted after Close -Out Process Invoices that are submitted after contract expiration may still be paid if the following conditions apply: • Invoice or pay estimate clearly shows that services were preformed prior to contract expiration. • Sufficient funds existed prior to close-out. Every effort should be made to process invoices in a timely manner to eliminate delays and extra steps in payment processing. 40 5.1 General Information It is the policy of the City of Port Townsend to provide the best possible stewardship and management of municipal assets in the best interests of the residents of Port Townsend. PTMC Chapter 3.44 sets forth the City's processes for disposition of surplus property and long-term leases. The information in this policy manual is intended summarize the code requirements. 5.2 Declaring Surplus A department head or operations manager may recommend that personal or real property under his or her control is deemed no longer to have any value and may desire to surplus that property. If the property has an estimated value under $10,000, the City Manager may declare that it is surplus. All personal property with an estimated value greater than $10,000, and any real property must be declared surplus by the City Council. All personal property acquired with utility funds may be transferred to and used by a non -utility department if the property is of de minimis monetary value. Disposition of utility assets must have an administrative hearing by the City Manager. Criteria for declaring surplus is based on one or more of the following: • The City has or soon will have no practical, efficient, or appropriate use for the property, nor will it have such a use for the property in the near future. • The purpose served by the property can be accomplished by use of a better, less costly, or more efficient alternative; • The purpose served by the property no longer exists as determined by a change of policy evidenced by an ordinance or resolution of the City Council; • The property is damaged, worn out, or otherwise inoperable and the cost of repairing the same is unwise or impractical. 41 5.3 Disposition of Personal Property Departments that determine they have surplus property should first make these items or equipment available to other City departments when reasonable. If the item is no longer of value to the City, staff may do the following: • Sell or transfer the item(s) to another government agency, subject to the public notice and hearing requirements of RCW 39.33.020 for items with a value in excess of $50,000. • Auction the item(s). The originating department will be responsible for all costs associated with this option. Finance will coordinate the auction with the department representative. • Sell the item through a sealed bid process. • Trade the item(s) in for new replacement equipment. • Send the item(s) to the State surplus program. • Donate the item(s) to a non-profit that serves or benefits low-income persons or persons with disabilities. (Be sure to obtain a receipt for record retainage.) • Dispose of the item(s) in the most cost effective, efficient manner. A department head or designee that is responsible for the disposition of property or assets. They should sign the "Declaring Surplus Memo" to the City Manager. The memo should be a detailed statement of the item(s), where the asset is located, the estimated value and the recommended disposition procedure. Send the memo to the Finance Department to coordinate obtaining the City Manager's or Council's approval. Once approval has been granted to dispose of the property, the receiving individual or organization must sign an "As-Is/Where-Is" Statement and/or Liability Waiver. The signed form must be forwarded to the Finance Department for record retainage. Within 24 hours of receipt, proceeds from any sale and sales tax collected will be forwarded to the Finance Department to be deposited. Sales tax will be remitted to the Department of Revenue on the next reporting cycle. Prior to sale, remove all City logos or other markings identifying the item(s) as City property from any vehicles and or equipment prior to sale. 42 5.4 Seizure Items (RCW 69.50.505) The Port Townsend Police Department follows their Asset Forfeiture Policy (Policy 601) in regards to the authority and procedures for the seizure, forfeiture and liquidation of property associated with designated offenses. 5.5 Surplus of Real Property (Land) The City Council shall make all decisions that relate to surplusage of real property in accordance with Chapters 35.94 and 39.33 RCW and whether property should be designated to meet affordable housing needs and surplused or retained for that purpose. Because real property should perform a valuable public function, the City Council should consider both current use and any foreseeable future use when surplusing real property. Pursuant to PTMC 3.44, affordable housing needs will be considered before surplusing public lands. The City Council shall hold a duly -noticed public hearing prior to disposing of real property or designating that the property may meet affordable housing needs and be surplused or retained for that purpose. All procedural guidelines shall be followed in accordance with the code. 6.1 Purchasing Cards as a Method of Payment In accordance with RCW 43.09.2855, local governments are authorized to use credit cards or procurement cards for official government purchases and acquisitions. The City of Port Townsend's purchasing card program has been established to provide a convenient, efficient means to purchase commodities and services from vendors and reduce the costs associated with a purchasing process. The City has obtained purchasing card participation in the statewide contract with US Bank as administered by the Washington State Department of Enterprise Services (DES). A benefit of using the contract is that it allows the City to earn a quarterly rebate based on the volume spent and timely payment. 43 The program is designed to empower employees to purchase items needed for operational City business. It is a method used to pay for purchases and is not meant to circumvent the purchasing policies or bidding procedures. 6.2 Purchasing Card Administration Purchasing cards (p-cards) are administered by the Finance Department. The purchasing card program administrator maintains the accounts and is authorized to make necessary changes and updates, corresponds with the bank to resolve issues, orders p-cards, reconciles purchases made during the billing cycle to the bank statement, verifies accuracy of supporting documents and signatures, maintains records, and assures timely payment. All purchasing cards will have the "City of Port Townsend" embossed on the card with the cardholder's name. It is not permitted to allow anyone other than the cardholder to use a card to make purchases. Approval to participate in the purchasing card program will be determined by the applicable department head. It is recommended that employees complete their initial probationary period before being eligible to have a purchasing card issued to them. (Exceptions to this may be made with authorization from the Finance Director or Finance Manager). Prior to releasing the purchasing card to the employee, the cardholder will: 1. Attend training to cover the City's purchasing policies and procedures. 2. Attend training to cover p-card procedures for US Bank Online purchasing card transaction management. 3. Acknowledge they have received, read and understood the City's Purchasing Policy and Procedures Manual by signing a Cardholder's Agreement Form. Department heads or their designees will ensure employees approve their charges and submit the proper supporting documentation, assign correct fund and account numbers (BARS Codes) and descriptive information for each charge, approve the charges online, print activity statements, and submit paperwork to the program administrator in Finance within five days of the billing cycle close date. Failure to comply with these policies and procedures may result in suspension of an employee's privilege of using a City issued purchasing card. Improper use of the p-card may result in disciplinary action up to and including termination of employment. 44 6.3 Authorized Charges and Uses As authorized, employees will use their p-cards at time of purchase for operational materials, supplies, small equipment, postage, subscription services, professional memberships, ordinary maintenance, services, CDL physicals, and authorized business travel expenditures. (Please see the City's Guidelines for Employee Travel for detail on authorized travel expenditures). Purchasing cards may be used at any vendor that accepts VISA credit. When making a purchase: • The cardholder must obtain a vendor's register receipt or invoice (Proof of Purchase). Packing slips and statements are not substitutes for receipts or invoices. • Register receipts and invoices should include transaction detail such as date of purchase, a description of each item, tax, shipping, and total. If the vendor does not issue a detailed receipt, it is the employee's responsibility to write a description of the purchase(s) on the receipt. • If a receipt is lost or the cardholder is unable to obtain a receipt, a "Declaration of Lost Invoice" Form must accompany the reconciled statement in place of the receipt. Employees who routinely do not submit actual invoices/receipt may have their purchasing card benefits suspended. • Follow the purchasing requirements outlined in the Purchasing Policies and Procedures Manual. 6.4 Unauthorized Purchases Cardholders must comply with the State bidding and purchasing laws and the City's Purchasing Policies when using a purchasing card. Examples of unauthorized uses and purchasing include: • Personal purchases of any kind • Cash advances through ATMs or banks • Cash refunds for returned items • Items restricted by City policy or State law, such as alcohol, tobacco, and entertainment • Any items from vendors restricted by the Finance Department, a department head, or the City Manager Examples of inappropriate uses: 45 • Any purchase in which the purchasing card is used to circumvent City or State polices, bid limits, or a cardholders personal purchasing limit. • Any purchase made on a cardholder's account by someone other than the cardholder. 6.5 Returns and Exchanges Cardholders are responsible for contacting the vendor when supplies, equipment, and services purchased with the p-card are not acceptable (incorrect, damaged, defective, not received) and for arranging a return for credit or exchange. • If items are returned for credit, the cardholder is responsible for obtaining a credit receipt from the vendor to include in the monthly purchasing card reconciliation. • If items need to be exchanged, the cardholder is responsible for returning the items to the vendor and obtaining a replacement as soon as possible. • If items are disputed, the cardholder is responsible for resolving any disputes directly with the vendor. If resolution is not possible, contact the Program Administrator. 6.6 Account Maintenance Online account maintenance: US Bank Online account maintenance is the responsibility of the cardholder. If an employee is locked out of their account, they should contact US Bank directly. The customer support number is listed on the back of the purchasing card. Please see the US bank Purchasing Card Instruction Guidelines for online account maintenance or call the purchasing card administrator in the Finance Department. Name changes: Changes to a cardholder's name should be reported to the program administrator. A new card will be issued in the employee's name. The cardholder should surrender the old p-card to his or her department head or to the program administrator. Lost or stolen card or fraud detection: Cardholders are responsible for their own card security. In the event the cardholder loses their card, suspects fraudulent activity on the card, or the card is stolen, they should contact US Bank immediately. In addition, the cardholder should contact the program administrator. 46 Termination of employment or revocation of purchasing card privilege: Cardholders must turn in their purchasing card to their department head, Human Resources, or the program administrator in the event theyterminate their employment with the City, or they have had their purchasing card privileges revoked. Spending Limits: Spending limits will be requested by the applicable department head and approved bythe Finance Department. In general, authorized spending limits will be established as follows (single transaction limit/monthly cycle limit): • $5,000/$5,000 — department heads and purchasing card program administrator • $2,S00/$S,000 — department managers, supervisors, department purchasing designees • $1,000/$2,500 — maintenance and operator staff • $500/$1,500 — others as assigned. Exceptions to these general guidelines will be reviewed at the request of the applicable department head. 47 A&E: Architectural and engineering services; includes land surveyors and landscape architects. Appropriation: City Council authorization to expend funds for a specific purpose. Bid: A written proposal submitted by a vendor or contractor to furnish supplies, materials, equipment, or services in conformity with the City's specifications included in a request for bids by the City. Bidding: Procedure used to solicit quotations on price from various prospective providers of supplies, materials, equipment, or services. Bid Evaluation: A review of bids/proposals received as a result of a competitive process to determine bidders' responsibility, responsiveness to requirements, and to determine the successful bidder(s). Bid Opening: The official process in which sealed bids are opened, usually in the presence of one or more witnesses, at the time and place specified in the invitation for bid. Each bid is logged, and bids are made available for public inspection only after award of the contract. The bid opening must be open to the public. Bid Deposit (also called a bid bond): A deposit in the form of a cashier's check, postal money order, or surety bond equal to 5% of the amount of the bid. Required for all formally bid public works projects. Bid Splitting: Breaking a public work project or purchase into segments. The City may not split a project or purchase to avoid compliance with bidding statutes (RCW 35.23.352(1)). Capital Equipment: Equipment of the City having an initial value of one thousand ($1,000) or more and an estimated useful life of three or more years. Change Order: An amendment to a public works contract, signed by both parties and outlining the mutually agreed upon changes to contract time, payment amount, or scope of work, as applicable. Contract: A legally binding and enforceable written agreement between two or more parties stating the terms and conditions for an exchange of something of value (usually money, goods, or services) between parties. The Legal Department should be contacted if there is uncertainty as to the need for a written contract and how to go about it. Contractor: Individual, company, corporation, firm, or combination, with whom the City develops a contract for the procurement of goods and services. Cooperative Purchasing (also called piggybacking): The action taken when two or more entities combine their requirements to obtain advantages of volume purchases including administrative savings and other benefits. DES: Washington State Department of Enterprise Services. 48 Delivery Terms: Conditions in a contract relating to freight charges, place of delivery, time of delivery, or method of transportation. Effective Date of Contract: The date on which the contract starts. Emergency: Unforeseen circumstances beyond the control of the agency that present a real, immediate, and extreme threat to the proper performance of essential functions or which may reasonably be expected to result in excessive loss or damage to property, bodily injury, or loss of life. Emergency Purchase: A purchase in which the normal competitive purchasing procedures have been waived by a declaration of emergency issued by the City Council or City Manager. Encumbrance: Interchangeable with "purchase order." Equitably distribute opportunities: Means that the local government may not favor certain contractors on the appropriate small works roster over other contractors on the same roster who perform similar services. Formal Competitive Bid: The process of advertising and receiving sealed written bids from prospective vendors or contractors. The selection of the vendor or contractor is primarily based on the lowest cost from a responsible vendor. General Services: Interchangeable with "purchased services." Goods and Services: Material, supplies, services, and equipment offered for purchase by a vendor or contractor and required by an agency to accomplish continuing and necessary functions. Informal Solicitations: Price quotes from vendors that are obtained using a variety of mediums such as phone, fax, email, or writing. Results must be documented and submitted to the Finance Department to obtain a purchase order (encumbrance). The selection of the vendor is based on lowest cost from a responsible vendor. Interlocal Agreements: The exercise of governmental powers in a joint or cooperative undertaking with another public agency. L&I: Washington State Department of Labor and Industries. MRSC: Municipal Resources and Services Center. A Washington -based non-profit that provides information and educational services to local government agencies. The City of Port Townsend uses MRSC's vendor, consultant, and small public works rosters. Ordinary Maintenance: Defined by WAC 296-127-010 as: " work not performed by contract and that is performed on a regularly scheduled basis (e.g., daily, weekly, monthly, seasonally, semiannually, but not less frequently than once per year), to service, check, or replace items that are not broken; or work not performed by contract that is not regularly scheduled but is required to maintain the asset so that repair does not become necessary." 49 Personal Services: Interchangeable with "professional services." Prevailing Wage Rate: The rate of hourly wage, usual benefits, and overtime paid in the locality to the majority of workers, laborers, or mechanics in the same trade or occupation; required to be paid on all public works and public building service maintenance contracts. These rates are set by L&I. Professional Services: Services that involve technical expertise provided by a consultant to accomplish a specific study, project, task, or other work. These activities and products are mostly intellectual in nature and do not include architectural and engineering (A&E) services. Examples of personal services include accounting, legal, comprehensive planning, and real estate services. Proposal: An offer to perform a contract to supply goods or services in response to a request for proposal (RFP). Purchase: The buying, leasing, renting or lease -purchasing of goods or services. Purchase Order (also called encumbrance): A form issued by the Finance Department or Legal Assistant, which reserves the purchase amount in the applicable fund and can sometimes serve as a written request to a vendor to provide the item being purchased. Purchased Services (also called general services): Services that are generally routine, repetitive, or mechanical in nature and support the City's day-to-day operations. Purchased services include janitorial, debt collections, equipment service agreements, machine repair, or delivery services. Public Work: A project including all work, construction, alteration, repair, or improvement other than ordinary maintenance executed at the cost of the City. Public work projects include the related materials, supplies, and equipment to complete the project. Purchase Order (Encumbrance): Official document used in authorizing the encumbrance of City funds toward a purchase. Quotation: An offer, including price, to perform a contract to supply goods and/or services in response to a request for quotation. Request for Proposals (RFP): A process that requests interested firms to submit a statement of their proposal for completing a project. Proposals are evaluated based on suitability, practicality, quality of the proposal, experience, and cost. Request for Qualifications (RFQ): a request for only a firm's general capabilities, including a list of principals, previous projects, number of employees, and licenses. An RFQ doesn't not including pricing information. Requisition Form: A standard form providing detail information as to quantity, description, estimated price, vendor, fund account, signature, and other information necessary to make a purchasing decision. Responsible Bidder: Contractor, supplier, or vendor who is determined to be qualified to provide services or goods to the City based on the criteria in RCW 39.04.350. 50 Responsive Bidder: An entity whose bids conforms in all material respects to the terms and conditions, the specifications, and other requirements of a solicitation. Sealed Bid (Formal Bid): An advertised solicitation for a requirement in which the cost exceeds the bid limit. The bids are opened during a public opening. Sole Source (also called a single source purchase): An exception to competitive bidding. A purchase of goods or services that is clearly and legitimately limited to a single source of supply in which the purchase price may be best established by direct negotiation. Solicitation: Notification to prospective bidders about a future project or purchase, with a request for competitive bids, quotes, or proposals. Splitting: The separation of continuing/repetitive requirements for the same good or service into several purchases to avoid dollar limitations or competition. Small Works Roster: List of contractors by work category who have registered with MRSC and requested to be notified by the City about upcoming projects or purchases and bid opportunities. Specification: A clear, complete, and accurate statement of the technical requirements descriptive of a material, item, or service. State Contract: Contracts for goods or services administered by the Department of Enterprise Services on behalf of agencies. The contract document will identify the conditions under which usage by agencies is allowed. Subcontractor: A person or business that is, or will be, providing or performing an essential aspect of a contract under the direction and responsibility of the primary contractor. Supplier: A vendor of purchased goods and services. Surplus Property: Personal property belonging to the City for which the City has no further use. Vendor: A provider of materials, supplies, goods, or equipment. 51 COUNCIL COMMITTEE ASSIGNMENTS Updated August 20, 2024 COUNCIL STANDING COMMITTEES Infrastructure and Development (111 Wed. 3pm Virtual/Chambers)---------------------- DF, MM, NN Culture and Society (211 Wed. at 3pm, Virtual/Chambers)---------------------------------AH, OR, BT Finance and Budget (31 Wed. 3pm / Virtual/Chambers) ----------------------------------- LW, AH, MM Intergovernmental Collaborative Group (Board of Commissioners)---------- Council of the Whole CITY BODIES WITH COUNCIL REPRESENTATIVES Alternative Electric Management Committee --------------------------------------------------Unassigned Lodging Tax Advisory Committee (LTAC)----------------------------------------------------------------- OR OUTSIDE BODIES WITH COUNCIL REPRESENTATIVES Economic Development North Olympic Peninsula Resource Conservation & Development Council (NODC)------------ MM Health Jefferson County Board of Health---------------------------------------------------------------------------MM Jefferson County Developmental Disabilities Advisory Board ----------------------------------------OR Jefferson County Clean Water District Advisory Council ----------------------------------------------- MM Jefferson County Behavioral Health Committee---------------------------------------------------------- NN Jefferson County Solid Waste Facilities Task Force ---------------------------------------------------- OR Housing HousingFund Board----------------------------------------------------------------------------------------AH , NN Infrastructure Public Infrastructure Board-------------------------------------------------------------------------------------DF Law and Justice Jefferson County/Port Townsend Regional Emergency Planning Committee--------------------MM Transportation Jefferson Transit Authority Board----------------------------------------------------------------------- BT, DF Peninsula Regional Transportation Planning Organization Executive Board ------------ BT (DF Alt) Surface Transportation Block Grant (STBG) Selection Committee ------------------------------------ DF Other Climate Action Committee-------------------------------------------------------------------------------------OR Jefferson County/City of Port Townsend LEOFF I Retirement/Disability Board-------------------DF JeffCom Administrative Board------------------------------------------------------------------------------ Staff OlyCAP Board of Directors------------------------------------------------------------------------------------ AH Joint Growth Management Steering Committee----------------------------------------------------- DF, BT Jefferson County FEMA funds (Dove House Advocacy Services, administrative agency) --------- Port Townsend Main Street HUD Loan Committee------------------------------------------------------ AH CreativeDistrict-------------------------------------------------------------------------------------------------- OR Fort Worden Public Development Authority--------------------------------------------------------------- LW Jefferson Broadband Action Team------------------------------------------------------------------------- LW Team Jefferson Economic Development Council(EDC) ----------------------------------------------- MM Jefferson County Fairgrounds Board-------------------------------------------------------------------------BT