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HomeMy WebLinkAbout112023 City Council Business Meeting PacketPORT TOWNSEND CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS, 540 WATER STREET Business Meeting 6:00 p.m. November 20, 2023 • Attend in person or virtually via computer or tablet at 1gtp // enter the 9 digit Webinar ID 850855531 • Phone only (muted - listen -only mode) United States: Local Dial In — (360) 390-5064 access code: 951-731-3384 • Live stream (listen only): https:Hcityofpt.us/citycouncil/page/agendasminutesvideos. • Submit public comment emails to be included in the meeting record to: ubiiccommef)t: X1)61 of t:.us ........................ • If you are experiencing technical difficulties, please attempt all methods listed above before reporting any issues to: �, r,,1�,su s _c�r,,k;,� > .... L Call to Order/ Pledge of Allegiance II. Roll Call III. Changes to the Agenda IV. Special Presentations A. Officer Swearing In V. City Manager's Report VI. Comments from the Public (re consent agenda items and items not on the agenda) (Each person has 3 min. to comment- City Clerk will signal at 2 min. 30 sec.) A. Public comment B. City Staff Response VII. Consent Agenda Action: Move to adopt the consent agenda or request to remove any individual item from the consent agenda. A. Approval of Bills, Claims and Warrants B. Approval of Minutes: October 9, 2023, October 16, 2023 C. Resolution 23-054 Setting the Time of a Public Hearing Regarding the Vacation of Fifteen -Foot -Wide Strip of Cass Street Adjoining the Grace Lutheran Church Property D. Facility Rental Fee Waiver for the Winter Warming Shelter at Pope Marine E. Authorize the City Manager to amend the Professional Service Contract with L&L Enterprises for the Library Restroom Remodel Project to an Amount Not To Exceed $90,000 and Execute Other Contracts Needed to Complete the Construction. VIII. Public Hearing A. Preliminary Budget for the City of Port Townsend, Washington, for the Fiscal Year Ending in December 31, 2024. Action: Move to approve first reading Ordinance 3325 Adopting the Budget for the City ofPort Townsend, Washington, for the Fiscal Year Ending December 31, 2024. i. Staff Presentation ii. Public Comment iii. Council Deliberation and Action B. Ordinance 3324 Fixing and Adopting 2024 Property Tax Levies for the General and Library Levy with a Total Increase of One Percent (1.00%) and a Voter -Approved Tax Levy for the Mountain View Commons Capital Improvements of $150,000 for the Unlimited Tax General Obligation Bonds Action: Move to approve Ordinance 3324 Fixing and Adopting 2024 Property Tax Levies for the General and Library Levy with a Totallncrease of One Percent (1.00%) and a Voter -Approved Tax Levy for the Mountain View Commons Capital Improvements of $150, 000 for the Unlimited Tax General Obligation Bonds i. Staff Presentation ii. Public Comment iii. Council Deliberation and Action IX. Unfinished Business (None) X. New Business A. Compensation and Salary Survey Presentation Action: Approval and adoption of the 2024 Salary Grade Range and Compensation Policy. i. Staff Presentation ii. Public Comment iii. Council Deliberation and Action B. Capital Budget Presentation Action: Discussion Only. No Action Requested. i. Staff Presentation ii. Public Comment iii. Council Deliberation and Action C. Ordinance 3326 Related to Public Utility Taxes and Amending Port Townsend Municipal Code Section 5.84.030 Action: Move to approve first reading of Ordinance 3326 Related to Public Utility Taxes and Amending Port Townsend Municipal Code Section 5.84.030 i. Staff Presentation ii. Public Comment iii. Council Deliberation and Action D. Evans Vista Pro Forma, Final Design, and Next Steps Action: Move to approve Exhibit A, the final site design for the Evans Vista Master Plan so the Project Team can apply for subdivision entitlements. i. Staff Presentation ii. Public Comment iii. Council Deliberation and Action XI. Presiding Officer's Report XII. Suggestions for next or future agenda, regular meeting and/or study session XIII. Comments from Council XIV. Adjourn CITY OF PORT TOWNSEND STATE OF WASHINGTON, ) ) ss. OATH OF OFFICE County of Jefferson ) I, Juan Vallejo, do solemnly swear that I am a Citizen of the United States and the State of Washington; that I will support the Constitution and Laws of the United States and the Constitution and Laws of the State of Washington, and will to the best of my judgment, skill and ability, truly, faithfully, diligently and impartially perform the duties of the office of Police Officer in and for the City of Port Townsend, Jefferson County, Washington, as such duties are prescribed by law. Juan Vallejo Subscribed and sworn to before me this 20th day of November 2023. Thomas Olson, Chief of Police -------- Original Message -------- Subject: Fwd: Re: Are you sold out? Date: 2023-11-11 13:40 From: parking20@forestgems.com To: Bthomas <bthomas@cityofpt.us> Council and others - Here are 2 emails to council and responses from your appointed mayor Faber, and my responses to him for the ongoing record. Interesting to see how his mind and therefore those that follow his lead think, or don't. I asked for some clarification from appointed mayor Faber. One topic was "Let's discuss the proposed hotel that the Leader said has 50 rooms. 11 parking spaces. How in "your" city with existing problems does this make any sense? The process seems to be moving along. The city must have taken money for permitting already. Does the SEPA cover all impacts?" Nothing so far. -------- Original Message -------- Subject: Re: Are you sold out? Date: 2023-11-06 19:05 From: parking20@forestgems.com To: David Faber <DFaber@city ofpt.us> David - Thanks for another response for the record. Both responses you send are attached to the email "Are you sold out?" I did send a second email to council after yet another day of blocked parking called "Are you brain dead?" In your own way you have answered that. Your narrative may make sense to you, we all are or should be judged on past and current performance and what we have to gain or lose. That includes social position. Those thinking bigger picture know any government has multiple fronts to serve, and laws and codes that are on the books after due process should keep government or those in government from going astray and becoming corrupted. Did you ever take a basic civics course? As street and road conditions and Cherry Street show, the longer that basics like parking and business access are ignored the more difficult and expensive any remedy becomes. A culture of respect has been destroyed by several appointed mayors and councils including you. It seems foolish to think you will ever get around to dealing with parking aside from prohibiting cars from the Historic District. Port Townsend is not Bordeaux and the specifics there have more detail if in the end a positive result occurred by eliminating cars. Cut off the flow of nutrients and any organism or system dies. What you say about Bordeaux must have similarities to Libby and Ithica New York. Oh yeah, they built several parking garages then closed the streets. Libby forgot to mention that. Lets get real David, if you can. Here is a map of Bordeaux. http://scanmail.trustwave.com/?c=16439&d=5e3P5Xe49wlnlyiq- TvuAFm60mwml_jDIjrVkkr5Iw&u=http%3a%2f%2fwww%2emappery%2ecom%2fmaps%2fBordeaux-city-Map- 2%2ejpg The population is 991,000. PT just over 10,000 It seems to be much different in layout and size than Port Townsend. Did you ask yourself, before limiting cars was there a significant stable and proven way visitors came into the closed off area? What distance did the average visitor travel? Surely the entire city was not car free. They are trying that in England. Not going so well. What percentage of Bordeaux was closed off to cars? Surely not all of the city of 991,000. Are there lots of tour busses bringing in significant numbers of visitors or customers? Rail or light rail transporting people? We get a few small cruise ships here off and on. No replacement for my bulk of customers. Were there areas for parking outside the closed off areas, sorry "open streets"? You smell like Libby. You most likely don't know the answers. If you cared about all visitors being treated equally as you made a big show of by proclamation you would hood all the parking signs and make it official that parking enforcement is nonexistent. Then watch and tell me of Bordeaux again. A mini chop zone with defunded police. Is that it? You discriminate. Full stop. When public servants get so of touch as you, Sandoval, Howard and others have that you did no due diligence on Cherry Street it becomes clear that those individuals are not fit to govern. Especially an attorney and real estate broker. The building is built over a water main, ignoring laws and codes. The city does as the city wants ignoring its own laws and codes. The city is those who control it. You of course have excuses and don't have the ability to be self-critical or you would understand the damage you do from housing to parking. I never said you personally benefit. A past 3 time mayor and council member who you know very well surely does benefit with no parking consideration as properties are sold. In a corrupt town money or favors might change hands. A condo with free all -day parking has far more value than one with no parking. Wink nod. I know folks who bought with that understanding. Wink nod. Government following laws and codes prevents that. Corruption is rampant. Even in River City. Perhaps the end game as with Fort Worden is to ruin and then dismantle for the desired structure. As I hire a broker to sell my business, what does one say to potential buyers who ask about parking access? The truth is that their business access will be negatively impacted on a regular basis. A positive for condos and big hotels but a negative for folks like me how came into a community with laws and codes to protect business interests and lawful culture. Parking planning and enforcement have systematically been deconstructed. I provided a letter to council asked for by Ben Thomas from a police volunteer who explained that in detail, and a letter from Timmons from years ago acknowledging damages and promising a fix. Who benefits is as important as who is damaged. Let's discuss the proposed hotel that the Leader said has 50 rooms. 11 parking spaces. How in "your" city with existing problems does this make any sense? The process seems to be moving along. The city must have taken money for permitting already. Does the SEPA cover all impacts? Are you going to answer regarding specifics of Bordeaux, and remember public testimony at the council meetings about parking causing losses? Why have studies if you ignore the ones you don't like? Pool and golf course come to mind. Are you brain dead? was my last email. Thanks for the clue. PT isn't Bordeaux. You would have to be brain dead or corrupt to compare the two and ignore what is before your eyes. Bizarre is in the eye of the beholder. Harvey Windle Forest Gems Gallery On 2023-11-06 14:50, David Faber wrote: > Harvey, > Here's my direct answer, then: I simply do not believe the > conclusions of the parking study have any veracity. Again, Bordeaux, > in France, is instructive for discussions of parking reform. When they > eliminated all vehicle traffic in their downtown, the business > community went ballistic, claiming (and pointing to studies and > "evidence") that business would collapse without proximate parking. > The opposite happened. Now, granted, here in PT we have not at all > eliminated vehicle access/parking; instead, we just have not been able > to enforce the current parking "limitations". But your own stated > experience, the experiences of other businesses in downtown, and my > own observations navigating the year-round throngs of people on the > sidewalks over the last decade, all lead me to believe that the > conclusions of the parking study are built a very shaky factual > foundation. > That said, again, I don't think failing to enforce parking limits is > good policy at all. I do not think public parking in high -demand areas > should ever be free. I believe we should be incentivizing people to > drive as little as possible. If staff capacity weren't such an issue, > parking reform and enforcement would be somewhere on my priority list, > but for me to push parking reform now would necessitate giving short > shrift to other issues that I think are _more important and have > greater --and graver --impact on our community_. To me, downtown parking > is simply not an emergency, and certainly not on the level of things > like housing affordability and infrastructure resilience. You can (and > I'm sure somehow do) disagree with that; that's fine. And it's your > right to continue to lob mean-spirited attacks (which are honestly > bizarre; in what way do you presume I personally benefit from parking > limits not being enforced?) driven by the singular issue you seem to > care about. I'll continue trying to address the full breadth of issues > facing our community, but I will prioritize those issues that deserve > priority focus. > Best, > David J. Faber > Mayor, City of Port Townsend > (360) 821-9374 > ------------------------- > From: parking20@forestgems.com <parking20@f6restgems.com> > Sent: Monday, November 6, 2023 9:45 AM > To: David Faber <DF aber@ city ofpt.us> > Subject: Re: Are you sold out? > CAUTION: External Email > David- > You avoid the larger picture as always. The parking problem certainly > is > not just in front of my shop. Much more detailed information has been > sent to you and council for years. You create a culture of me first > and > destroy social norms that keep communities together in the long run. > I will follow up once again for the record when I have time. You > distort > the problem and answer the distortion as though I was the only > business > and individual negatively impacted. You do not mention the parking > study > and losses mentioned there or losses you heard of from many community > members as the streateries were crammed down everyone's throats with > almost no public notice. You and council extended their time after > hearing that over and over again. > City staff said years ago there were over 50 spots a day taken away. > To respect the actual city that are the laws and codes and working > people means disrespecting those that hijack the city and ignore laws > and codes. You also have obviously not been paying attention. I don't > live within city limits so cannot run for council. > Your bad choices are a matter of record. > More for the record once again when I have time. Enjoy the sparkly > lights that blind. > Harvey Windle > Forest Gems Gallery > On 2023-11-05 17:50, David Faber wrote: >> Harvey, >> As I've said before: not enforcing parking downtown (in fact, > giving >> for free the private use of public land for parking cars!) is bad >> policy, but addressing bad policy with good policy takes more than >> just words, it takes action and follow-through, and that >> action/follow-through takes staff capacity that the city simply does >> not at all currently have. >> Though parking enforcement would be nice, it's tertiary to my > larger >> priorities (infrastructure resilience and planning >> flexibility/residential densification), which, if addressed, will > give >> us more capacity to address parking in the future by relieving parts >> of city government that are currently overwhelmed with tasks brought >> on by decades of sclerotic regulatory layering that has worked >> directly against our stated community goals per our comprehensive >> plan. >> If you think that addressing parking enforcement in front of your >> shop should be a 41 concern of the city government, then I encourage >> you to run for city council during the next election and see if the >> public agrees with you that other issues should be set aside to > focus >> on downtown parking enforcement. I'm sure you'll keep penning >> insulting diatribes, as is your right; they won't make me think > you're >> wrong about parking enforcement (again, not enforcing parking limits >> is bad policy), but they also aren't likely to make me think that > this >> is an issue of overriding importance. >> Best, >> David J. Faber >> Mayor, City of Port Townsend >> (360) 821-9374 >> ------------------------- >> From: parking20@forestgems.com <parking20@forestgems.com> >> Sent: Wednesday, November 1, 2023 8:02 PM >> To: David Faber <DFaber@city ofpt.us> >> Subject: Fwd: Re: Are you sold out? >> CAUTION: External Email >> David and council- >> Most know I am no fan of the Leader. A response by the editor to the >> email I sent to you, council and others "Are you sold out?" shows > that >> he thinks "You are persuasive and articulate, but my space is > limited. >> Your arguments are sound." He did not have the space to print the >> entire >> email. I decided not to bother editing it for Leader readers as you >> are >> already automatically going to be re elected due to the fact that > most >> who live here that I speak with do not know the details of corrupted >> city government. That is in great part due to the Leader not diving >> deep >> on many issues for many years. >> The email I sent was long. I felt that a stand-alone history was >> needed. >> You and others in power cannot look any visitors to town in the eye >> and >> tell them you choose to treat them as outsiders and fools with fake >> signage. You gloss over that you are doing that. In total for 10 > years >> now. Others in town are drawn in like Main Street to the betrayal. >> Mauro >> has no issues with the reality of what he is doing. He has destroyed >> his >> credibility from day one and many times since. No number of buffers >> and >> spin doctors hired change that. It does waste public money. >> You, Mauro and council do benefit the real estate interests you were >> appointed, not elected, deputy mayor under. Putting things in > writing >> invites others to question logic or lack of it. I am ready for any >> follow up questions. Are you? >> You are able to be in the position you are in due only to the >> dysfunction of those who surround you. >> Pissing all over my leg and that of all visitors and business and >> wishing me the best suits you and council along with your sole >> employee >> Maruo. >> Be kind but stay real. What is reflected back at you is of your >> making. >> My arguments are sound according to the editor of the Leader. Most > any >> uncorrupted person would think so. >> Harvey Windle >> Forest Gems >> -------- Original Message -------- >> Subject: Re: Are you sold out? >> Date: 2023-10-29 17:30 >> From: News Desk <news @ptl eader. c om> >> To: parking20@forestgems.com >> Mr. Windle; >> I would very much like to print your letter, but it is very much too >> long at over 1800 words. Could you make most of the same points in > 500 >> words? By tomorrow, noon? >> You are persuasive and articulate, but my space is limited. Your >> arguments are sound. I think there are places where you veer into > the >> past and into the personal that could be cut. Please resubmit. »—ED >>> On Oct 29, 2023, at 3:51 PM, parking20@forestgems.com wrote: >>> Just FYI no response expected. >>>-------- Original Message -------- >>> Subject: Are you sold out? >>> Date: 2023-10-29 16:23 >>> From: parking20@forestgems.com >>> To: Dfaber <dfaber@city ofpt.us> >>> Council members- >>> This will be a bit long with some familiar content, but I have 27 >> years >>> and quite a bit of my money invested here. >>> It is submitted as the last chapter of a long 10 -year communication >> to >>> council of problems receiving no answers. I represent what is given >> lip >>> service to. I am a working self-sufficient successful artisan. I >> will >>> be selling or closing soon. The following is to explain the >>> "instrument" that Owen Rowe does not like the "tone" of. All > council >> Is >>> equally tone deaf. >>> Then- >>> 47 years ago, a 21 year old "hippie type" risked it all to be a >>> self-sufficient self-taught artisan on the unforgiving daystalls at >> the >>> Pike Place Market. It was a kind of university to learn art and >> craft, >>> and marketing. He scraped by for quite a while and eventually made >a >>> good living and learned much more than expected. The corruption >> where >>> he was eventually drove him to seek a less dishonest place and he >>> risked it all once again. In 1996 he opened Forest Gems in funky, >>> ragged, and real Port Townsend. The mayor came to welcome him. The >>> police chief did as well. A volunteer parking enforcement person >> made >>> things for the gallery and weeded flower beds. The fire chief drew >> the >>> plans for the home he built on 60 acres, financed with hard work > and >>> the honesty one looks for in small towns. He was organically woven >> into >>> the community. He was able to also provide 4 affordable rentals for >>> older folk and young families. The 60 old, forested acres are for >> now >>> conserved. Without any grants or government assistance. Bless the >> Port >>> Townsend he came to 27 years ago. It has been captured and > contorted >>> into what John Mauro now calls "his" town. The appointed mayor will >> not >>> be visiting. The police chief will not be around or respond to >> damaging >>> actions. There are no parking volunteers. Main Street and Chamber >> will >>> hang flower baskets and the like and stay silent on practices that >>> damage all businesses and the visitors they spend money to attract. >>> Now- >>> I attended and observed 3 council meetings during the mess tent >> fiasco >>> where public parking spaces were taken illegally for private > special >>> interest use. Observing the dynamics was familiar and quite > telling. >>> Kris Nelson who was a past president of Main Street and very >> connected >>> in other aspects wanted more for herself. " Streaterie Magic". Ask >>> Quimper sound how that worked for them. Not "Magic". Perhaps less >>> obvious to the insulated council were other damages and wedges >> driven. >>> Ask the then new owner of Alchemy what community means. Apparently >> an >>> abandoned and moldy mess tent left sitting unused for months during >> the >>> important holiday season as less parking meant less income for >> others. >>> Add to that his staff parking on the street all day as is the case >> with >>> many businesses. This is the new manufactured >>> Timmons/Sandoval-Faber/Maruo/ council "community". >>> Owen Rowe did comment that he didn't like the tone of "some people" >> at >>> one of 3 council meetings I attended, nodding in my direction as >>> falsehoods were spouted by some council members, insulated by >> Roberts >>> Rules of Order. Some corrupted "public servants" have no sense of >>> responsibility, true ability, or the reality of damages inflicted. >>> "Can't we just try something different" said Libby Wennstrom > wanting >> to >>> gamble with my business and not quite telling the truth regarding >>> another town that eliminated street parking. Owen Rowe focused on >> the >>> "tone" of someone ignored and speaking for many being damaged for a >>> decade. There is a long list of shirked responsibility and inept >>> management in Port Townsend. >>> David Faber is on the record saying how important institutional >>> continuity is. For who? >>> It is so convoluted here that I watched Main Street board members >>> become victims of Main Street. Captured Main Street director Mari >>> Mullen (now funded by city tax dollars) sold out all members >> providing >>> skewed numbers regarding public input and limited public notice. I >>> personally went door to door and found most all businesses had no >>idea >>> of the proposed ordinance change. No Main Street board members >> seemed >>> to have any issues with that. Amazing. What low self-esteem must > one >>> have to need to be a part of that "team', or an unquestioning >> council >>> member? >>> I watched as appointed mayor Faber acknowledged "poor" Kris Nelson >>> sitting alone and was so happy when Kris and a Main Street board >> member >>> hugged it out. What a bizarre show. Kris with a knife in his back >> and >>> he giving a big hug for show. >>> Limited public notice was also the case with Mauro and Faber and > the >>> water/sewer newsletter which mentioned nothing regarding the >> proposed >>> change in the city ordinance that would have allowed mess tents to >>> increase in numbers and become permanent. "Something different" >> indeed. >>> All old news now. Just a sampling of the groupthink that each and >> every >>> council member is often part of. The truly far -gone sense nothing > is >>> amiss, but may experience annoying "tones". >>> This week -no changes. >>> Attached are two photos taken on Saturday October 28th. The first > is >>> the truck of the owner of the Washington Hotel that regularly parks >> in >>> front of my business and others. A few weeks ago, he made a point > to >> go >>> out of his way to get in my face while taking space in front of my >>> business. Me just ignoring him was not enough for him. His face to >> me >>> was that of Faber, Mauro and council. His business and himself are >>> devolved to harm others for personal gain. Like Sandoval, 3 -time >>> appointed mayor and 20 -year council member. Buy a condo and get > free >>> parking included. Never mind the city ordinance and posted signage. >>> Full council turns a blind eye, groupthink is in effect; the > problem >> is >>> those seeing a problem. After years my "tone" changed. David. Owen. >>> Amy. Libby. Aislinn. Monica. Ben. >>> Each council member has been and is part of that. Each council >> member >>> usually groupthinks or things would not be as they are. There have >> been >>> a few broken promises and assurances over the years regarding >> illegal >>> parking. The problem is known. The council's "tone" is just white >> noise >>> drowning out reality. >>> The second photo is of the blue Porche that has become a regular >>> fixture all day. It stands out, but as always there are many > others. >>> This person and others including the owner of the hotel can't just >> park >>> up the hill on Washington. They are assimilated into the culture >> here >>> to damage self and others. Such is the Faber/Mauro/council Port >>> Townsend "community" of today. >>> Tone deaf. >>> A couple of years ago, a new police officer starting here told of >> the >>> country he came from. He said if you called the police they didn't >>> come. I no longer bother to call the police regarding folks like > the >>> owner of the blue Porsche and Washington Hotel's pickup truck. They >> are >>> proxies doing damage at the direction of Faber/Mauro and council. I >>> wonder if that officer is still here and what he really thinks of >> this >>> place, and his superiors. Hardly superior. >>> I don't like the tone of dragging down the police Owen Rowe. The >> tone >>> sounds like creeping corruption. There are other corrupted tones as >>> well. Owen is or was on the board at the Food Co -Op. Likely > destined >>> for other positions in town because he makes no waves and plays >> along >>> with the corrupted powers that be. What if the food co-op >> experienced >>> the loss of customer access and income loss that others and I do? >> What >>> would be your response as a Co -Op board member Owen? Why is it >>> different on the streets here? Owen embodies inconsistent > corruption >>> that serves some above others. This is observed without any "tone". >>> So, this is my 47th year of being a self-supporting artisan. 27 >> years >>> in Port Townsend also financing and representing other artisans. >>> Perhaps my "tone" is due to being responsible and not lowering my >>> ceiling or sense of self to fit into corrupted "teams" or systems. >>> I left Pike Place Market where I sold my work for 23 years due to >>> systemic corruption. I participated in trying to reform things > there >> by >>> being Daystall Tenants Director, part of the PDA system, but saw > the >>> futility and came here. Port Townsend is a different tide pool with >> the >>> same forces. Even some of the same people from Seattle were in >>> government here early on. A PDA was even formed at Fort Worden. I >>> warned about that because of observing a corrupted PDA elsewhere. >>> I have been setting things up for several years to leave this >> council >>> created "community" behind. Things are coming together, and I am >>> getting close now. I have been vocal and on the record. The > official >>> narrative of a gifted Timmons and selfless Sandoval that set the >> stage >>> for today has many cracks. >>> Some like Mauro speak of the soul of "his" town. If not sold there >> will >>> be a very real loss of an artisan owned and operated business with >a >>> 47 -year history, part of the organic aggregate of the "soul". There >>> will never be another like it, or anything similar in Port > Townsend. >>I >>> am reminded daily of that by my regular customers who vary from > rich >> to >>> not so rich. I work for my artisans and customers and honor all who >> are >>> part of what I do. I watch as all visitors are treated as fools > with >>> fake 2 -hour signage that insiders know to ignore. Mari at Main >> Street >>> with her board gushes and cheers. Chamber is silent. Police are not >> to >>> be bothered. One officer years ago told me of the self -licking ice >>> cream cone that is Port Townsend now. >>> I am told I have a one -of -a -kind destination. I have busted my ass >> to >>> build and maintain it. If money is the gauge of success, I have >>> recently done better than Mauro without selling my soul. Or the >>> community others built. >>> The council appointed mayor publicly talks of sex with dogs and >>> chickens, wastes millions that should have helped affordable >> housing, >>> and tells police to stand by as women are assaulted. Somehow, he > has >>> position and approval. I am sickened. Council is in denial. Owen >>> doesn't like my "tone" but openly support what he says is >> entertaining. >>> Last week my manager told me some Buddhist Monks were in and >> declared >>> my place here a sacred space. Others including customers and tribal >>> members are equally supportive. No council member past or present, >>> Timmons, or Mauro have ever been in to actually "engage". Instead > in >>a >>> tiny town of only ten thousand, there is a convoluted system > holding >>> real people at arm's length. Mauro now having a new expensive > buffer >>> position on his staff. He hires consultants to tell him what they >> know >>> he wants to hear. He was recently fooled by larger fish from larger >>> pools it seems. Council approves his spending, even for a > consultant >> to >>> show council how to not consider negatives, with groupthink the >>> objective. How empty must one be to participate? >>> Be Kind. >>> Harvey Windle >>> Forest Gems Gallery >>> Since 1976<IMG 0266.JPG><IMG 0265.JPG> From: Jason Gunbv To: nubliccommentC6citvofot.us Subject: Cherry St. property CoHousing development Date: Monday, November 6, 2023 9:23:23 PM "Dear Mayor and city council members; I am writing to strongly encourage the city to keep the Cherry Street property on a path to provide affordable housing for the citizens of Port Townsend. There are many ways this could be achieved including giving local co -housing groups the option of developing a community on the site. Selling the property to a private developer will not meet the pressing need that our community has for housing that is affordable for working people and families. Please keep the long term housing needs of all the residents of our city in mind when planning the future of this public asset. Regards, Jason Gunby Port Townsend resident From: Laura Hulsev To: nubliccommentC6citvofot.us Subject: Healthier together with room for everyone! Date: Monday, November 13, 2023 5:40:18 PM Good evening, We are asking for your consideration to include the dog park when planning the mountain view pool project. If you want room buy in from the community, why not make room for the most used park in Port Townsend ? You stated in the golf course meeting you wanted to playground at the golf course site. we are asking you to consider placing additional parking where the current gym and portable is. This would allow parking for the pickleball folks as well as parking for city vehicles. By doing this it would cut down on the massive parking look of the project without taking away the much needed parking. It would then be conceivable to shift the plan to allow for the dog park in the size required. Also eliminating the green zone at the bottom of lot 2, starting the dog park where the back fence of the park is now, taking up the recyclery. thank you Laura Hulsey Mountain view Dog park From: Mara Graff To: nubliccommentC6citvofot.us Subject: I support a new pool Date: Thursday, November 16, 2023 11:01:27 AM Hello City Decisionmakers, I want to voice my strong support for building a new pool here in Port Townsend, As we all know, the current pool is in need of much repair, and, rather than continuing to spend money on keeping an old structure going, I believe investing in a new pool is a prudent and wise investment for our community. As a town with a focus on maritime activities, we need a place where young people can learn to swim and practice water safety. Swimming is a wonderful form of exercise for people of all ages, from babies to 90 -year-olds, and accessible to people of ALL physical abilities. It is a great family activity and community builder. I personally am a dedicated lap swimmer, using the pool multiple times per week ---and there are many like me. I would not have purchased a house and moved here had there not been a swimming pool. I believe if we are to attract new people (workers of all sorts!) and families to our town, we need to provide the kinds of recreational, health -enhancing and community - building facilities that make it an attractive place. Thanks for your consideration as you deliberate this major project. Margaret Groff 206-890-8320 From: Kate Cecvs To: publiccommentC6citvofot.us Subject: In support of a new public pool for our kids Date: Monday, November 13, 2023 10:59:10 AM ' ��1 Dear City Council, We support moving forward with a public pool that meets the needs of our community, especially our kids. We moved here for a job in the maritime economy. One of us had gone to the boat school years before, and we thought Port Townsend would be good place to return to raise a family. We had a two-month old baby and one of the first things we did was sign the Jeffco aquatic coalition petition for a new pool. We've since had a daughter. In time boiler and roof issues have been substituted for staffing issues. Since the pandemic, the pool is not open at times that our kids can access and it's hard for them to be in the pool's cold water for long. As a result, neither are strong swimmers and we know many kids that can't swim at all. Our son is now eight, our daughter is five, and we have been talking about a new pool their whole lives. Turns out it's been talked about for a quarter century. And we will keep talking still. In the last meeting on October 16, city council was unable to pass a motion on the pool. After a multi-year collaboration by partner organizations, members sought clarification on a number of items, including city oversight and institutional arrangements, the sunsetting of the old pool, and issues of building/parking design. In addition to city staff's response, we note: - On design, in the current proposal nothing is locked in until the fundraising has taken place and the budget is clear. So there is flexibility to accommodate changes to the parking and entrance design, building orientation and shower facilities. However, there are also trade-offs, especially financial implications, to the carefully considered recommendations. - Before it goes to ballot, the county will undertake financial assessment of the estimated revenue and sources. (For the record, we are willing to pay the estimated $10-30 per year as part of local sales taxes to invest in and sustain our community.) - Governance -wise, the city maintains leverage via the continued annual operational budget. In addition, the steering committee will continue until the Public Facilities District (PFD) is established and the city has a seat at the table. While county appoints the PFD, regulation calls for a make-up of relevant bodies and as city manager Mauro said, he would be shocked if the city wasn't part of that. (Also, "the county" is not some ominous body on the other side of the country. It's three individuals that you know/work with regularly and have established channels for collaboration. We're not immune to politics here, but we are a small community where we can knock on each other's doors and have a conversation.) - We look forward to the pool tour and hearing more from Y and city staff about what it means for our community when our 60 -year-old pool reaches the end of its life. It is time to move forward. Council's job is to make decisions on behalf and for the benefit of our families and neighbors. At times we can get so worried about the minutiae that we forget the bigger picture. Inaction is an action, and one that is out of step with community views. There is strong support behind this. There are millions of dollars in grants to be accessed in the coming months. But your support is needed. There will always be another idea to be accommodated, but not at the cost of further delay or worse, no pool. We all have to compromise. For our part, we think the proposal is conservative. We support the full build -out because it's a better return for investment with higher cost recovery. However, in the spirit of compromise, we are willing to settle for the recommended basic plan and help fundraise - if that's what it takes to move forward. We trust the work of others who have dedicated their time and expertise, weighed the pros and cons and come up with a clear list of recommendations. This is the closest we've been to getting a new pool. Is the proposal perfect? No. Does it satisfy everyone? Also no. But is it pretty good? Absolutely. And in the spirit of collaboration, city council's in -principle support is important when it goes to a county -wide vote. And that's what compromise is. Will issues come up that weren't considered? Probably. However, council is supporting the best, balanced proposal at the time and there is a brainstrust of organizations to help figure out issues that may emerge. Importantly, there is a groundswell of community support. Port Townsend is a wonderful town. It's also not an easy place for families. This is what a more family friendly Port Townsend looks like. Support for working families includes investment in and opportunities for our children. That is what attracts and keeps those working in the hospital, businesses, schools and marine trades. Please support the recommendations for a public pool that meets the needs of our kids. We are ready to move forward. Kate and Ryan Chadwick Port Townsend From: Aleah Lawrence -Pine To: publiccommentC6citvofot.us Subject: In Support of a Pool Date: Monday, November 13, 2023 4:48:28 PM CAUTION: External Email Hello, I wanted to submit a public comment for tonight's City Council meeting in support of building a new pool facility in Port Townsend. I grew tip in Port Townsend and was on the swim team at Mountain View pool in the 90's. As a competitive swimmer in was really hard to train in a pool that was shorter than 20 yards and then be competitive in meets against other swimmers who were training in regulation length pools. Swimming has continued to be a very important part of my life, both for physical and mental health. I now live in Port Townsend again as an adult with my husband and two young children. I have enjoyed many pool facilities in communities tip and down the West Coast and Port Townsend pales in comparison to all of them. Having a fully functional pool facility, with regulation length lap pool as well as features for families with small children is a critical core need in our community. Swimming is one of the best ways to keep my children physically active through our long, cold, dark, wet winters. Additionally having a place to take swimming lessons is essential for children growing up in a coastal town with a thriving boating culture. As it is now, you have to be on a waitlist for months to get into swimming lessons. I know many families that drive to Sequim or PortAngeles for swimming lessons and that is not only expensive and a massive time burden, but it is terrible for the carbon footprint of our town. Just yesterday I went to the Shore Aquatic Center with my children on a Sunday morning. There were more than 16 families with more than 50 people at the pool from Port Townsend! If we had a better pool facility here in town my family would frequent it multiple times a week for lap swim, swim lessons, and open swim family fiin times. Please support families. Please support swimming lessons which are a vital life skill. Please support improved mental and physical health. Please find a way to build a more robust and regulation length pool in Port Townsend. Sincerely, Aleah Lawrence -Pine Barracuda swim team member 1991-1996 Mother to two children tinder 10 who need swim lessons Avid swimmer Home owner within Port Townsend city limits who is willing to pay a pool tax 831-345-6388 951 17th Street Port Townsend Sent from my iPhone From: Kris DeWeese To: CitvCouncil; pub11ccomment6c1tvofot.us Subject: New collision at Lawrence and Walker street intersection Date: Wednesday, November 8, 2023 6:02:26 PM Dear Friends, You'll be glad to know that because of your failure to improve safety at the intersection of Lawrence and Walker streets, generally known to be one of the most dangerous intersections in PT, there was just another collision. The police are on the scene now; I hope no one was hurt. I've asked you before for the contact info of the City's risk management pool, but you didn't provide it to me. Please send it to me now. Sincerely, Kris DeWeese 1919 Lawrence St. Port Townsend, WA 98368 From: Mark Grant To: nub1iccommentC6citvofot.us Cc: Mark Grant Subject: Pool Construction Cost Questions Date: Monday, November 13, 2023 6:26:09 PM To Whom It May Concern, I have a few questions based on the information presented and provided by DCW Cost Management regarding the proposed construction estimated costs associated with the City of Port Townsend Healthier Together Proposed New Pool Project, specifically, the Preferred Option- Cost Plan Update. here are the questions: 1. There are no monies allocated for hazardous materials abatement, and given the age of the existing structure(s) to be removed, it is highly likely that abatement issues will arise and will need to be addressed. Is it assumed that the funds for this will come out of the 10% contingency line item? Has there been a thorough analysis done to determine the level of abatement that may/ will have to occur? 2. Is the "Owners Project Cost Estimate", from which the payable sales tax for the project is included, assumed to be the $27,957,115.00 budgeted/ estimated amount? If this is the case, the hard cost for the actual construction before tax would be approximately $25,508,317.00, with a sales tax amount of $2,448,798.00, of which approximately $75,912.74 would come back to the City of Port Townsend. Would this money be returned to the proposed new taxing district, or to the City of Port Townsend? 3. What are the permitting costs for a project with a valuation of $27,957,115.00 expected/ anticipated to be, as this cost is not included in the budget provided and listed as to be paid "By Owners"? Looking forward to your responses. Thank -you! Mark L Grant President Grant Steel Buildings and Concrete Systems, Inc. 75 Haada Laas Road Port Townsend, WA 98368 Office - 360 379...323Ci .............................................................................................. Mobile - .3.60........3..0...............43.4.f....�... . E-mail- gr tr-s elb�uuldit� ;, >4maul.mni Web Address - UrAitLq=F ul W � a .Qm � , m Grant Steel Buildings and Concrete Systems, Inc is recognized as a certified Veteran Owned Business by the State of Washington. Grant Steel Building and Concrete Systems, Inc is recognized as an Authorized Builder by Varco-Pruden Buildings. From: Molly Force To: nubliccommentCcitvofot.us; Lonnie Mickle Subject: Pools and families Date: Monday, November 13, 2023 5:09:51 PM Hi, The pool is a very critical place in our community for both young children and adults of all ages for health and wellness. Our community lacks an acceptable pool facility. Currently our family drives to port Angeles to access the pool at shore aquatic center. Many of my patients do as well, driving an hour both directions in order to access a decent lap pool and facilities that accommodate children under 5. Port Townsend as an aging community and a community seeking younger upcoming families both deserves and requires a pool facility that accommodates these demographics and facilitates wellness for our community. In our environment with the damp cold weather it is critical that we provide safe movement spaces for our community members in order to facilitate wellness throughout the year. Please consider funding a more robust pool center that allows for both lap swim and children under five to learn a critical survival skill of swimming in water that is not going to cause them hypothermia like our Puget sound will. This becomes an equity issue as only families that have expendable income are able to allow their children to learn to swim in a pool that they can reach the bottom of by driving them an hour away or purchasing expensive wetsuits. My dream as a healthcare practitioner with young children is to be able to age in place in this community and I am relying on having a pool facility that will accommodate me as an older adult. We should be having water aerobics classes available daily for large groups of adults. I'mWe should have swimming lessons for children in both the elementary school as we've had in the past prior to the pandemic as well as children under the age of five. I was astonished when there was no pool that my children could stand in until they were 5 years old. Growing up in the Midwest children learn to swim at 2 years old or younger so this was shocking to me and frankly is concerning that these children are missing a life skill. Lmicle From: Elizabeth Quinn To: nu b1iccommentC6citvofot.us Subject: Swimming pool! Date: Tuesday, November 14, 2023 12:30:29 PM CAUTION: External Email I'm going to assume money is the biggest concern when considering whether or not to build a pool for the community. That being said, I wonder why on earth a "water park and spa" is even in the conversation. A 6 lane pool and locker rooms is plenty. (If a kid can't have a good time in a big pool with kick boards, diving toys and their friends, then the kids have a problem.). Pare the plan down to good quality basics, and maybe there will be less controversy about this issue. Also, as a community surrounded by water on 3 sides, a pool should be a priority, along with swim lessons as part of the P.E. programs in the schools. Good hick! Sent from my Whone From: Gerry Kress To: nubliccommentC6citvofot.us Subject: Congratulations ... Date: Wednesday, November 15, 2023 1:36:28 PM CAUTION: External Email Upon making progress with "Carmel" housing project on Cherry St. I have been an ardent critic of this project from the get go. Thank you Council for taking steps to resolve this eye sore. Now if it could only be demolished, sold & an affordable multi unit stricture built. (No single family houses!) Again: my compliments. Gerry Kress From: sbUstbneu��u� To: Subject: ISupport anew poox From: Christen McLean To: publiccommentC6citvofot.us Subject: In support of new pool Date: Sunday, November 19, 2023 9:49:26 AM Hello! I'm definitely in support of creating an updated aquatic center. We are a coastal community and swimming should be a public priority for safety and support of physical and mental health. We are far behind other cities on the Olympic peninsula in updating our pool facilities to support a vibrant swimming community. I love swimming but don't use our outdated pool due to the need for high chemicals and the small size. Sincerely, Chrissy McLean PORT TOWNSEND CITY COUNCIL CONSENT AGENDA November 20, 2023 A. Approval of Bills, Claims and Warrants: Vouchers 173259 through 173347 in the amount of $682,773.22 B. Approval of Minutes: October 9, 2023, October 16, 2023 C. Resolution 23-054 Setting the Time of a Public Hearing Regarding the Vacation of Fifteen -Foot -Wide Strip of Cass Street Adjoining the Grace Lutheran Church Property D. Facility Rental Fee Waiver for the Winter Warming Shelter at Pope Marine E. Authorize the City Manager to amend the Professional Service Contract with L&L Enterprises for the Library Restroom Remodel Project to an Amount Not to Exceed $90,000 and Execute Other Contracts Needed to Complete the Construction. Action: Move to adopt the consent agenda or request to remove any individual item from the consent agenda. (Short statements or easily resolved questions are appropriate without removing item from the consent agenda). DRAFT CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL AND PLANNING COMMISSION EVANS VISTA SITE TOUR AND JOINT COUNCIL AND PLANNING COMMISSION WORKSHOP MEETING OF OCTOBER 9, 2023 The Port Townsend City Council and Planning Commission met on the 9t" day of October for an Evans Vista Site Tour located at the end of Evans Vista Street Near Washington State Department of Social and Health Services located at 2507 Evans Vista Street, Port Townsend, WA 98368, and a Special Session Joint Council/Planning Commission Workshop Meeting to follow in Council Chambers at 540 Water Street. Mayor David Faber called the tour to order at 5:OOpm. Councilmembers present at the tour were Aislinn Palmer, David Faber, Monica MickHager, Owen Rowe, and Ben Thomas with Amy Howard and Libby Wennstrom excused. Staff members present at the tour were City Manager John Mauro, Planning and Community Development Director Emma Bolin , Public Works Director Steve King , Communications and Marketing Manager Shelly Leavens, Parks and Recreation Strategy Director Carrie Hite, Finance and Technology Services Director Connie Anderson, Long Range Planner Adrian Smith, and People and Performance Director Cynthia Shaffer. Planning Commissioners present at the tour were Rick Jahnke, Neil Nelson, Samantha Bair -Jones, Bob Doyle, Andreas Andreadis, and Viki Sonntag. CITY COUNCIL AND PLANNING COMMISSION TOUR OF EVANS VISTA SITE Mayor Faber introduced Planning and Community Development Director Emma Bolin Planning and Community Development Director Emma Bolin introduced Ron Thomas, Principal of Thomas Architecture Studios. Mr. Thomas introduced his architect team and explained the City's project goals and oriented the walking group to the site compared to the site renderings. The group toured the Evans Vista site, where the Evans Vista Extension Street would be located, four planned mixed-use buildings near the neighborhood entrance, planned detached childcare facility, south open space lawn, and the existing gravel access road which will be the future site of a parking lot. Throughout the tour locations for townhomes, walk-up apartments, and several multifamily buildings with partially underground first level parking were pointed out. The tour ended by the group returning to the tour origin along the site's eastern property line. October 9, 2023 Special Sesion Joint Planning Commission and City Council Tour and Workshop Meeting Page 1 of 4 DRAFT The Planning Commission and City Council adjourned the tour at 6:40pm and returned to Council Chambers for Workshop discussion portion of meeting. DISCUSSION ITEMS Councilmembers present at the meeting were Aislinn Palmer, David Faber, Monica MickHager, Owen Rowe, and Ben Thomas with Amy Howard and Libby Wennstrom excused. Staff members present at the meeting were City Manager John Mauro, Planning and Community Development Director Emma Bolin , Public Works Director Steve King , Communications and Marketing Manager Shelly Leavens, Parks and Recreation Strategy Director Carrie Hite, Finance and Technology Services Director Connie Anderson, Long Range Planner Adrian Smith, People and Performance Director Cynthia Shaffer, Chief of Police Tom Olsen, City Attorney Heidi Greenwood, and City Clerk Alyssa Rodrigues. Planning Commissioners present at the meeting were Rick Jahnke, Lois Stanford, Neil Nelson, Samantha Bair -Jones, Bob Doyle, Andreas Andreadis, and Viki Sonntag. SPECIAL PRESENTATIONS Mayor Faber presented the Indigenous Peoples Day Proclamation to the Jamestown S'Klallam Tribe representatives. Mayor Faber presented the National Community Planning Month Proclamation to the Planning Commissioners. COUNCIL AND PLANNING COMMISSION FINAL DESIGN DISCUSSION Principle of Thomas Architecture Studios Ron Thomas, Associate Principle/Project Manager Amos Callendar, Architectural Associate Jason Mirzayi, and ECONorthwest Project Manager James Kim provided the Evans Vista Housing presentation which included Introduction, Schedule, Vision, Site Analysis and Background, Site- Sun/Wind/Views, Site: Circulations/Access, Site: Natural Features, Site Plan, Site Plan - Major Zones, Site Plan- Outdoors, Site Plan- Urban Zone, Building A, Building B, Building C (C1, C2), Site Plan — Walk Ups, Building D (D1,D2), Site Plan- Townhomes, Building E (E1, E2, E3), Site Plans -Apartments, Building F&G, Typical Unit Plans, Example Interiors, Site Plan — Recap, Precedent Imagery, Site Sections, Conceptual Renderings, Refinement, RFP Considerations, Tradeoffs in Feasibility, and Approach to Analyzing Affordability Options. In response to Council and Planning Commissions clarifying questions staff and consultants explained dense development and affordability trade off, smaller mixed unit development cost, podium parking, LIHTC funding, land next to DSHS, projects for local October 9, 2023 Special Sesion Joint Planning Commission and City Council Tour and Workshop Meeting Page 2 of 4 DRAFT builders, developing RFP, final site design, tuck under parking costs and topography, nonprofit buildings vs mixed use, defining workforce housing, federal subsidy for whole project, mixed use housing, land dictating construction, and flow of traffic. Discussion ensued around logic of project, workforce vs. affordable housing goals, concerns around systemic part, concerns of social element, age differential, scenarios, diversity, dog park, community center, buses, covered bike racks, covered spaces, building quickly, evolving process, understanding entire housing system, more affordable units, attractive to everyone in community, building clientele, constructing walkups first, maximizing what is feasible, more affordable units by increasing density, parking, 800 units of affordable housing, only current project to provide affordable housing, displaced community, finding subsidies, and goal of more affordable units. Public Comment: Liz Coker spoke about importance of discussion with housing partners. Liz Revord spoke about affordable housing, workforce housing, operational costs, partners, nonprofit building, local contractors/builders, and Housing Solutions Network support. Kelsey Caudebec spoke about wanting to stay in Port Townsend and housing for people who already live here. Julia Cochrane spoke about oversight board, ground floor for less mobile people, living integrated, homelessness, and affordability. Scott Walker spoke about parking. In response to Public Comment staff and consultants explained partnership discussions, prioritizing locals, prioritization for walkups, and nonprofit property management. Discussion ensued around marketing for locals and interest list. Planning Commission adjourned at 8:22pm. Council members went into recess at 8:22pm. Council members reconvened at 8:27pm. GENERAL PUBLIC COMMENT There was no public comment. BUDGET AND THE 2024 WORKPLAN City Manager John Mauro introduced the Budget and the 2024 Workplan. October 9, 2023 Special Sesion Joint Planning Commission and City Council Tour and Workshop Meeting Page 3 of 4 DRAFT Mr. Mauro presented Getting it Right: An integrated workplan that drives our budget and a responsible budget that delivers for our community presentation which includes Overview, Quarterly Workplan Update: 2023 Priorities, Quarterly Workplan Update: Status, Quarterly Workplan Update: Policy Suggestion Board Status, 2024 Strategic Workplan — take it to the bridge, Strategic Capacity (doing the math)- reality check, and What Next- we've got this. Public Comment: Viki Sonntag spoke about housing strategy development being in priority 1, affordable housing packages and more public discussion about housing subsidy. Rick Jahnke spoke about employees per 1000 residents. Scott Walker spoke about off street parking requirements. In response to Public Comment staff explained housing and priorities list. Discussion ensued around strategic capacity vs. FTE, Financial Sustainability Task Force, Advisory Board and Council help, July discussion, weighted items, what staff needs, Comprehensive Plan, Planning strategic capacity, grant resources, sustainable economic development, big picture results, budgeting time, culture, City Manager conference, upcoming meetings, collaborative approach, and watching Finance and Budget Committee meeting. There being no further business, the meeting adjourned at 9:19pm. Attest: Alyssa Rodrigues City Clerk October 9, 2023 Special Sesion Joint Planning Commission and City Council Tour and Workshop Meeting Page 4 of 4 DRAFT CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL SPECIAL BUSINESS MEETING OF OCTOBER 16, 2023 CALL TO ORDER The Port Townsend City Council scheduled a special session on the 16th day of October, 2023 beginning at in Council Chambers at 540 Water Street. Mayor David Faber called the meeting to order at 5:30pm ROLL CALL Councilmembers David Faber, Amy Howard, Monica MickHager, Ben Thomas, Owen Rowe, and Libby Wennstrom were present. Aislinn Palmer was absent. Staff members present: City Manager John Mauro, City Attorney Heidi Greenwood, Public Works Director Steve King, Planning and Community Development Director Emma Bolin, Parks and Recreation Strategy Director Carrie Hite, People and Performance Director Cynthia Shaffer, and City Clerk Alyssa Rodrigues. CLOSED SESSION- PURSUANT TO RCW 42.30.140(4)(8) POLICE CONTRACT NEGOTIATIONS (APPROXIMATLEY 10 MINUTES) EXECUTIVE SESSION - PURSUANT TO RCW 42.30.1 10(l) CONSIDERATION OF THE MINIMUM OFFERING PRICE FOR SALE OR LEASE OF REAL ESTATE IF THERE'S A LIKELIHOOD THAT DISCLOSURE WOULD DECREASE THE PRICES (APPROXIMATLEY 20 MINUTES) City Attorney Heidi Greenwood stated the Council members will go into a Closed Session- pursuant to RCW 42.30.140(4)(b) to discuss Contract Negotiations with the Police Union to last approximately 10 minutes followed by an Executive Session - pursuant to RCW 42.30.110(1)(c) to discuss Consideration of the minimum offering price for sale or lease of real estate if there's a likelihood that disclosure would decrease the price to last approximately 20 minutes. There will be no action to follow. Council members went into Closed Session and Executive Session at 5:32pm. Council members came out of Closed Session and Executive Session at 6:01pm. No action was taken. There being no further business, the meeting adjourned at 6:OOpm. Attest: Alyssa Rodrigues City Clerk October 16, 2023 Special Session City Council Business Meeting Page 1 of 1 111y (f port Townsen Submitted By: Heidi Greenwood, Emma Bolin, and Steve King Agenda Bill AB23-259 Meeting Date: November 20, 2023 Agenda Item: VILC ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Date Submitted: November 15, 2023 Department: City Attorney, Director of Contact Phone: 360-379-5048 Planning and Community Development, and Director of Public Works SUBJECT: Setting a public hearing for vacating a fifteen -foot -wide strip of Cass Street adjoining Grace Lutheran Church property CATEGORY: ❑ Consent ❑x Resolution Staff Report ❑ Ordinance Contract Approval ❑ Other: BUDGET IMPACT: Expenditure Amount (2023): N/A Included in Budget? Yes ❑x No ❑ Public Hearing (Legislative, unless otherwise noted) 3 -Year Strategic Plan: 3 - Establish systems to support diverse housing options Cost Allocation Fund: SUMMARY STATEMENT: The City Council approved a real estate transaction term sheet between the City and Grace Lutheran Church on October 16, 2023. The term sheet includes provisions to resolve parking and an equitable property exchange to prepare Cherry Street property for sale. The term sheet has been signed by both parties. The first step of the term sheet is to hold a right of way vacation hearing for a portion of Cass Street. The image below illustrates the portion of Cass Street needing to be vacated to allow for Grace Lutheran parking to fit on their property. The value of the right of way to be vacated will be provided to the City in terms of a land exchange. Tract B Joint Access Easement Tract A Convey to Church for Parking Access Term Sheet Exhibit— 9f8/23 r t� �Y x, Tract D W Property to be deeded to City TI'�'l 4 iu�, ...... ...... !r t k r li0u ' f Tract C — Vacate, Strip Approx. 15 ft. Allows room, for instadllation of short retaining wall. I'xhibit attached to terra sheet R4,hi of rovay vacation area shown in red crass hatch The area of vacation will need to be excavated lower than the road with a block retaining wall to accommodate a level parking lot. City staff recommends setting a public hearing vacating the right of way and forgo retaining an underlying utility easement in the vacation area for the public benefit of a land exchange in which an equivalent value of property is transferred to the City. ATTACHMENTS: N/A CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: If adopted as part of the Consent Agenda, no further action is needed; this effectively represents unanimous approval of Resolution 23-054 Setting the Time of a Public Hearing Regarding the Vacation of Fifteen -Foot -Wide Strip of Cass Street Adjoining the Grace Lutheran Church Property ALTERNATIVES: ❑x Take No Action ❑x Refer to Committee ❑x Refer to Staff ❑x Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: Resolution 23-054 RESOLUTION NO. 23-054 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, SETTING THE TIME OF A PUBLIC HEARING REGARDING THE VACATION OF A FIFTEEN -FOOT -WIDE STRIP OF CASS STREET ADJOINING THE GRACE LUTHERAN CHURCH PROPERTY WHEREAS, the Port Townsend City Council approved a real estate transaction terms sheet with Grace Lutheran Church on October 16, 2023; and, WHEREAS, the term sheets proposes to resolve several clouds on the title of the Cherry Street property and resolve the Grace Lutheran Church parking shortage; and WHEREAS, step one of the term sheet proposes that the City vacate a portion of Cass Street, an unopened right-of-way to the Church; and, WHEREAS, in return for the portion of Cass Street, the Church will deed a portion of their property to the City to be added to the Cherry Street property as a land exchange; and WHEREAS, Port Townsend Municipal Code 12.20.070 requires that prior to vacating any public right-of-way, the City fix a time for a public hearing by resolution; and WHEREAS, the public hearing must be not more than sixty or less than twenty days from the resolution fixing the hearing and January 2, 2024 is less than sixty but more than twenty days from November 20, 2023; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend to hold a public hearing on January 2, 2024 on or about 6:00 p.m. to regarding the vacation of a fifteen -foot -wide strip of Cass Street adjoining the Grace Lutheran Church Property. ADOPTED by the City Council of the City of Port Townsend at a regular meeting thereof, held this 20'h day of November 2023. Attest: Alyssa Rodrigues City Clerk David J. Faber Mayor Approved as to form: Heidi Greenwood City Attorney 111y (f port Townsen Agenda Bill AB 23-260 Meeting Date: November 20, 2023 Agenda Item: VILD ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Submitted By: John Mauro Date Submitted: November 8, 2023 Department: Administration Contact Phone: 360-385-3000 SUBJECT: Facility rental fee waiver for the winter warming shelter at Pope Marine CATEGORY: BUDGET IMPACT: ❑x Consent ❑ Resolution Expenditure Amount: ❑ Staff Report ❑ Ordinance Included in Budget? Yes ❑ No ❑ ❑ Contract Approval ❑ Other: contract amendment ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3 -Year Strategic Plan: N/A Cost Allocation Fund: Choose an item, . SUMMARY STATEMENT: The City has hosted the winter warming shelter for several years at the Pope Marine building. Using the authority in the Port Townsend Municipal Code 3.44.010(B) and Chapter 3.46 of the Port Townsend Municipal code expenditure authority, the City Manager agreed to lease the Pope Marine building for that facility at no cost. City Council adopted a fee waiver policy in June 2022. This policy allows for waivers of fees for up to $500 with a total of $1000 per organization per year. Leasing the Pope Marine building during the winter months will exceed the amount allowed under the fee waiver policy. This year, Council will need to approve the fee waiver as it exceeds the allowable amount. This action is not a violation of the Washington State Constitution prohibition on gifting public funds because the City may expend public funds to support the "poor and infirm." Because the winter warming shelter is intended to give shelter and warmth to the City's unhoused residents, it fits within the Washington State Constitution's allowable expenditures of public funds. ATTACHMENTS: None. CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: If adopted as part of the consent agenda, no further action is needed; this effectively represents unanimous approval of the facility rental fee waiver for the winter warming shelter at Pope Marine. ALTERNATIVES: ❑ Take No Action ❑ Refer to Committee ❑ Refer to Staff ❑ Postpone Action ❑x Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: 111y (f port Townsen Agenda Bill AB23-261 Meeting Date: November 20, 2023 Agenda Item: VILE ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Submitted By: Michael Todd, Facilities and Parks Manager and Steve King, PW Director Department: Public Works Date Submitted: November 16, 2023 Contact Phone: (360) 379-5081 SUBJECT: Authorize the City Manager to amend the professional service contract with L & L Enterprises for the Library Restroom Remodel Project to an amount not to exceed $90,000 and execute other contracts needed to complete the construction. CATEGORY: ❑x Consent ❑ Resolution ❑ Staff Report ❑ Ordinance ❑x Contract Approval ❑ Other: BUDGET IMPACT: N/A Expenditure Amount: $77,000.00 Included in Budget? Yes ❑x No ❑ ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3 -Year Strategic Plan: 4 - Ensure sustainable future for public services and facilities Cost Allocation Fund: 010-093 GF - Non-Departmental/Contracts SUMMARY STATEMENT: Amended authority from the Oct. 2nd agenda that gives the City Manager the authority to amend a professional service contract with L & L Enterprises for the Library Restroom Remodel Project in an amount not to exceed $90,000 and other contracts needed to complete the construction. Prior authority had `not to exceed" of $80,000.00. Current authorization for change orders is set to a limit of 20% given the project is a remodel project and we expect to encounter change conditions and additional repairs. There are two priority projects that have been identified for 2023 at the Port Townsend Library. The first project was approved by Council in June of 2023 for the replacement of the 14 dilapidated and aging windows in the annex side of the library. The second project this year will be the remodel of the two Library restrooms. For these restrooms to meet updated ADA standards, upgrades to the sinks, stalls and fixtures need to be met. Additionally new the and paint will be added to give the restrooms a fresh new look. The library is scheduled to remain open throughout construction with operating with normal business hours 7 days a week. During the remodel the public restrooms will be closed for 4-6 weeks while construction takes place. The city will provide outdoor Sani- can restrooms onsite for the public and staff to use during that time, similar to what was provided during COVID. Along with the window project the restroom remodel has been on the books since 2017. The project was advertised on MRSC Small Works Roster and staff received three competitive bids. The lowest responsive bid is $76,519.00 including WSST submitted by L & L Enterprises. Staff is requesting authorization the City Manager to enter into an agreement with L & L Enterprises in the amount of $76,519.00 and further authorizes change orders up to a limit of 20% given the project is a remodel project and we expect to encounter change conditions and additional repairs. Funding: Washington State Department of Commerce Library Capital Improvement Program - $172,560 (for the window replacement and the bathroom remodels) Matching funds from ARPA, Bond Fund, REET- $180,000. This item gives the City Manager the authority to amend the professional service contract with L & L Enterprises for the Library Restroom Remodel Project to an amount not to exceed $90,000 and execute other contracts needed to complete the construction. ATTACHMENTS: None CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: If adopted as part of the consent agenda no further action is needed; this effectively represents unanimous approval of authorizing the City Manager to amend the professional service contract with L & L Enterprises for the Library Restroom Remodel Project to an amount not to exceed $90,000 and execute other contracts needed to complete the construction. ALTERNATIVES: ❑x Take No Action ❑x Refer to Committee ❑x Refer to Staff ❑x Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: 111y (f port Townsen Agenda Bill AB23-262 Meeting Date: November 20, 2023 Agenda Item: VIII.A ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Submitted By: Connie Anderson, Finance Director Date Submitted: November 19, 2023 Department: Finance & Technology Services Contact Phone: 360-379-4403 SUBJECT: Public Hearing for 2024 City Manager Proposed Budget CATEGORY: ❑ Consent 1 Staff Report BUDGET IMPACT: ❑ Resolution Expenditure Amount: ❑ Ordinance Included in Budget? Yes ❑ No ❑ Contract Approval ❑x Other: Public Hearing (Legislative, unless otherwise noted) 3 -Year Strategic Plan: N/A Cost Allocation Fund: N/A SUMMARY STATEMENT: The legislative body must hold a public hearing on the proposed budget and the revenue sources to support the operating and capital expenditures for the coming year. Opportunity is given to receive public testimony on the proposed budget and its revenues sources through the process of opening and closing the first public hearing on this matter. The final public hearing on the 2024 budget and revenue sources will occur on December 4, 2023, with final adoption anticipated on December 4, 2023. The City Manager's Proposed 2024 Budget is presented for Council discussion and deliberation. At this time, it is recommended that consideration is taken for public or Councilmember input and provide direction to staff about making any adjustments. The 2024 City Manager proposed budget as presented, centers on initial steps to implement the findings of the financial sustainability initiative report presented to Council at the July 10th City Council Retreat. Council provided guidance indicating support for investments in tools, people, streamlined policies and processes. Council also indicated the importance of maintaining revenue sources that will support financial health for the future. Several changes have been made based on feedback received from Council at the November 6 Council business meeting: • Added $178k to Streets to fund Street equipment for future Street capital projects. This is seed money for equipment to be in place when the first Transportation Benefit sales tax receipts are received in late May 2024. • Deferred $350k RCO grant match funding; matching funds will be needed in 2025 for two one-time park opportunities. • Scrutinized general revenue expenditures, tightened things up to provide funding for Streets equipment and minimize use of General Fund reserves. • Added $490k transfer from General Fund to Equipment Replacement Reserves, the initial 20% investment to restore Fleet reserves. Seed Funding Council provided guidance to establish an internal service fund for facilities repair and replacement. Pages 11-14 of the All Funds Combined Summary reflects the addition of the new facility funds and the separation of Parks and Facilities in the Community Services fund. Council also provided guidance to utilize general fund reserve balance to fund the first of five contributions ($490k / 20%) to restore the fleet replacement reserve. As new vehicles are purchased, departments will begin making contributions to the future replacement of the vehicle. Establishing the go forward savings plan along with the large contributions from general fund reserves as able will restore the health of the fleet reserve. Policy Considerations. Effective planning for the future includes making policy decisions today that set values and principles to provide future guidance. Policies are the backbone of how our City works. Streamlining the policies for consistencies and in line with comparable cities in our area will provide efficiency of day-to-day operations. The Finance & Budget Committee met on November 15th to discuss the proposed changes. Here is a link of the policy conversation: ./ It:.p..../pii of d. a°anlicus.com/ Ila eir/cilli /2882?vliew lid ::::::4&red lirect::::::true&Ih::::::6c`I'7cOe7400 : eef58f8Zf25d480ffed The following is a high-level review of the proposed policy changes: Debt Management Policy (page 15-16 City of PT Financial Policies) • 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. • $100,000 threshold for projects and grant match from anticipated cash flows or reserve balances Electronic Funds Policy (page 17 City of PT Financial Policies) • As recommended by the State Auditors with the 2020-2021 financial audit Purchasing Policy Matrix — Bid Limits & Signing Authorization • Council - Over $75,000 • City Manager — Up to $75,000, same for all categories • Department Head — Up to $25,000, same for all categories Other policies (previously discussed) • Authorized FTE changes by City Manager • Fund additions and changes The policies are attached for review. Final approval of the policy changes is planned with the adoption of the 2024 budget. In addition to the information highlighted above, the attached policies include some minor editing, consistent with the proposed changes and current City organization. The final policy package will include all necessary changes to municipal code as well as the policy documents. Notes: • Any changes made to the Budget Summary and Key Goals are marked in red. • Community Services & Facilities Replacement & Reserve fund, pages 11-14 • The 2023 Salary Schedule is included along with the 2024 Authorized Position by Department. The updated 2024 Salary Schedule will be provided at the December 4th Council meeting, following approval of the revised compensation policy and salary review analysis. Upcoming discussion opportunities: • November 20 - Public Hearings on revenues, property tax levy and 2024 budget adoption • December 4 — Public Hearing on 2024 budget adoption. Capital Facilities Plan and 2023 Year End Supplemental Budget ATTACHMENTS: 1. Ordinance 3325 (to follow) 2. Ordinance 3325 Exhibit A — City of Port Townsend 2024 Proposed Budget 3. City of Port Townsend 2023 Forecast Fund Summary 4. City of Port Townsend 2024 All Funds Combined Summary 5. Authorized Position and 2023 Salary Schedule 6. City of Port Townsend Financial Policies, Revised 2023 (draft) 7. City of Port Townsend Purchasing Matrix — Bid Limits & Signing Authorization CITY COUNCIL COMMITTEE RECOMMENDATION: October — Finance & Budget Committee — recommendation to bring continuation of the 1.5%/2% public utility tax to Council for review. Council review on October 16 — recommended including the revenue in the Proposed Budget, final decision pending. November — Finance & Budget Committee — recommendation to bring proposed policy consideration changes to Council for review. RECOMMENDED ACTION: Move to approve the first reading of Ordinance 3325 Adopting the Proposed Budget for the City of Port Townsend, Washington for the Fiscal Year Ending December 31, 2024. ALTERNATIVES: ❑x Take No Action ❑ Refer to Committee ❑ Refer to Staff ❑x Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: Ordinance 3325 Page 1 of 2 ORDINANCE NO. 3325 AN ORDINANCE ADOPTING THE BUDGET FOR THE CITY OF PORT TOWNSEND, WASHINGTON, FOR THE FISCAL YEAR ENDING DECEMBER 31, 2024 WHEREAS, the City Manager of the City of Port Townsend, Washington, completed and placed on file with the City Clerk a proposed budget and estimate of the amount of monies required to meet the public expenses, bond retirement and interest, reserve funds and expenses of government of the City for the fiscal year ending December 31, 2024 (the "2024 Preliminary Budget"), and a notice was published that the City Council would conduct a public hearing on the 201h of November 2023 at 6:00 p.m., at City Hall for the purpose of receiving public testimony regarding the preliminary budget for the 2024 fiscal year; and WHEREAS, the City Council held a public hearing on November 20, 2023 at which all taxpayers were heard who appeared for or against any part of the preliminary budget; and WHEREAS, following the public hearing, the City Council met in City Council Chambers on December 4, 2023 to consider the 2024 Final Budget and receive further public comment, and made adoptions and changes, as it deemed necessary and proper; and WHEREAS, the 2024 Budget does not exceed the lawful limit of taxation allowed by law to be levied on the property within the City of Port Townsend for the purposes set forth in the 2024 Final Budget, and the estimated expenditures in each fund set forth in the 2024 Final Budget are all necessary to carry on the government of the City for fiscal year 2024, and are all necessary to meet the various needs of the City during the period; NOW, THEREFORE, the City Council of the City of Port Townsend, Washington, do ordain as follows: Section 1. The budget for the City of Port Townsend, Washington, for the fiscal year 2024, is hereby adopted at the fund level as set forth in the document entitled "City of Port Townsend Final Budget 2024," a copy of which has been and now is on file with the office of the City Clerk, and by this reference is incorporated into this Ordinance. Section 2. Estimated revenues, including fund balances for working capital for each separate fund of the City of Port Townsend, and aggregate totals for all such funds combined, for the year 2024, are set forth in summary form in Exhibit A attached, and by this reference are incorporated in this Ordinance, and are appropriated for expenditure at the fund level during the 2024 budget year. Section 3. The City Clerk is directed to transmit a certified copy of the City of Port Townsend Final Budget 2024 to the Office of State Auditor and to the Association of Washington Cities. Ordinance 3325 Page 2 of 2 Section 4. This Ordinance shall take effect upon its passage, approval, and publication in the form and manner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular meeting thereof, held this 4 I day of December 2023. Attest: Alyssa Rodrigues City Clerk David J. Faber Mayor Approved as to Form: Heidi Greenwood City Attorney Cit y0f Port CITY OF PORT TOWNSEND Townsen°'� d 2024 PROPOSED BUDGET FUND SUMMARY 2023 Est. 2024 Projected Ending Revenue Expense Rev vs. Exp Ending Fund Balance Budget* Budget* Y E Target Fund Balance GENERAL FUND 4,532,382 15,429,015 15,915,177 (,1861162) 4,046,220 Drug Enforc. / Contingency 263,274 45,000 0 45,000 308,274 ARPA Grant 866,265 0 860,807 5,458 Street 406,696 1,585,003 1,584,880 123 406,819 Library 554,468 1,246,505 1,246,433 72 554,539 Real Estate Excise Tax 1,109,892 695,000 704,700 1,100,192 Lodging Tax 943,783 535,000 530,117 4,883 948,666 Fire / EMS 7,361 0 0 0 7,361 Affordable Housing 67,233 95,000 92,896 2,104 69,337 Community Development Block Grant 157,978 20,000 20,000 0 157,978 Community Services Parks 1,386,208 1,383,129 0 Community Services 762,890 0 0 771,244 TOTAL SPECIAL REV FUNDS 5,139,841 5,607,716 6,422,962 42,482 4,329,869 DEBT SERVICE FUND 637,798 1,127,896 1,068,180 59,716 697,514 General Capital 348,423 392,307 713,658 q V 11, ";':1;1 27,072 Street Capital 1,046,380 4,412,039 5,445,488 1,() "E', l l{!;1 12,931 CAPITAL PROJECTS FUNDS 1,394,804 4,804,346 6,159,146 ':.,,35418(1lillali) 40,004 Golf Course 1,883 21,000 21,000 0 1,883 System Development 2,671,469 785,000 605,906 179,094 2,850,563 Water Sewer Operations 3,105,920 9,361,129 11,303,486 1,IM"";;J'';1 1,163,563 Water / Sewer Capital 5,562,779 14,016,826 11,062,653 2,954,173 8,516,953 Storm Operations 770,410 1,211,324 1,765,901 G%i J'';J'';1 215,833 Storm Capital 12,240 598,655 608,665 1. 7;? 2,230 ENTERPRISE FUNDS 12,124,701 25,993,934 25,367,611 626,323 12,751,025 Public Works Admin 235,444 867,845 867,554 291 235,735 IT Equipment O&M / Replacement 204,206 488,917 454,035 34,882 239,088 Fleet Equipment O&M / Replacement 2,525,497 1,479,905 2,051,058 1, 1 1, 4;1 1,954,344 Facilities Equipment O&M / Replacement 1,302,805 1,297,531 5,274 5,274 Engineering Services 20,049 1,879,091 1,195,864 683,227 703,275 Unemployment Self-Insurance 29,201 25,000 25,000 0 29,201 INTERNAL SERVICE FUNDS 3,014,397 6,043,563 5,891,042 152,521 3,166,918 Firemen's Pension 329,523 27,500 26,360 1,140 330,663 Custodial / Refundable Deposits 29,433 0 0 0 29,433 Memorial Fund 0 0 0 0 0 FIDUCIARY FUNDS 358,956 27,500 26,360 1,140 360,096 GRAND TOTAL 27,202,879 59,033,970 60y850,478 I! ,,"l''I! I:IIi 25,391,645 city jo „ Revenue vs Expense Summary of rt Estimated For the Period Ending December 31, 2023 Townsent un -di t,d 20X2 -d Fund lDa Iaincr, Beginning Revenue Revenue Expense Expense Rev vs. Exp Rev vs. Exp Ending Fund Balance Budget* YTD Actual Budget* YTD Actual Y E Target YTD Actual Fund Balance GENERAL FUND 6,931,283 15,376,005 15,376,005 17,774,906 17,774,906 (2,!398,901) (2,!398,901) 4,532,382 Drug Enforc./ Contingency 203,145 60,130 60,130 0 0 60,130 60,130 263,274 ARPA Grant 2,299,505 19,036 19,036 1,452,277 1,452,277 i,1 C i'.'C!:'i;l (1.. C 'C!7;1 866,265 Street 479,484 1,213,437 1,213,437 1,286,224 1,286,224 406,696 Library 587,341 1,199,069 1,199,069 1,231,943 1,231,943 I d,r''3S1 A ,3 'S1 554,468 Real Estate Excise Tax 1,203,130 687,315 687,315 780,553 780,553 17 I!; i8) 7 i,1 1,109,892 Lodging Tax 721,406 593,098 593,098 370,721 370,721 222,377 222,377 943,783 Fire / EMS 7,302 748 748 689 689 59 59 7,361 Affordable Housing 83,937 76,193 76,193 92,896 92,896 i1F i'0) i1F "i:'ia;l 67,233 Community Development Block Grant 159,317 18,662 18,662 20,000 20,000 11 3'S ) I 1 61 157,978 Community Services 597,061 2,567,012 2,567,012 2,401,183 2,401,183 165,829 165,829 762,890 TOTAL SPECIAL REV FUNDS 6,341,626 6,434,700 6,434,700 7,636,486 7,636,486 (1,201, 11186) (1,201, V86) 5,139,841 DEBT SERVICE FUND 396,019 2,877,227 2,877,227 2,635,448 2,635,448 241,779 241,779 637,798 General Capital 960,239 1,230,417 1,230,417 1,842,233 1,842,233 I° 1 I 1 348,423 Street Capital 195,118 2,373,944 2,373,944 1,522,681 1,522,681 851,263 851,263 1,046,380 CAPITAL PROJECTS FUNDS 1,155,357 3,604,361 3,604,361 3,364,914 3,364,914 239,447 239,447 1,394,804 Golf Course 2,500 20,055 20,055 20,672 20,672 (FS 1..'+') (FS 1..'+') 1,883 System Development 2,156,674 829,164 829,164 314,369 314,369 514,795 514,795 2,671,469 Water Sewer Operations 4,081,850 9,174,077 9,174,077 10,150,007 10,150,007 1n 74f;'i1 1n .7561 3,105,920 Water Sewer Capital 3,875,116 6,294,316 6,294,316 4,606,652 4,606,652 1,687,664 1,687,664 5,562,779 Storm Operations 677,661 1,226,206 1,226,206 1,133,457 1,133,457 92,749 92,749 770,410 Storm Capital 26,773 131,207 131,207 145,740 145,740 114 'S 4!41 11 t 'S1 12,240 ENTERPRISE FUNDS 10,820,573 17,675,025 17,675,025 16,370,896 16,370,896 1,304,128 1,304,128 12,124,701 Public Works Admin 139,877 754,731 754,731 659,164 659,164 95,567 95,567 235,444 IT Equipment O&M / Replacement 160,505 410,950 410,950 367,248 367,248 43,701 43,701 204,206 Fleet Equipment O&M / Replacement 2,268,986 824,197 824,197 567,687 567,687 256,511 256,511 2,525,497 Engineering Services 71,900 874,504 874,504 926,356 926,356 I 1 3145'1 A 1,3 1 20,049 Unemployment Self -Insurance 22,346 10,000 10,000 3,145 3,145 6,855 6,855 29,201 INTERNAL SERVICE FUNDS 2,663,614 2,874,382 2,874,382 2,523,599 2,523,599 350,783 350,783 3,014,397 Firemen's Pension 313,510 36,387 36,387 20,374 20,374 16,013 16,013 329,523 Custodial / Refundable Deposits 4,748 51,386 51,386 26,701 26,701 24,685 24,685 29,433 Memorial Fund 0 0 0 0 0 0 0 0 FIDUCIARY FUNDS 318,258 87,774 87,774 47,076 47,076 40,698 40,698 358,956 GRAND TOTAL 28,626,731 48,929,473 48,929,473 50,353,324 50,353,324 (] i" 8"'i 1) (,;p 1" 8"' 1) 27,202,879 un -di t,d 20X2 -d Fund lDa Iaincr, City of Port Townsend General Fund Budget Detail and Summary 2'021 2022 2023 2023 2024 I ncre aselDec F e ME General Fund 2024 Proposed vs Actu a I Actual Forecast BUdget Proposed 2023 Budoet Miscellaneous Revenue 116,209 206,959 265,842 189281 301,,781 59.4% Other Increases 920 20,841 25,501 35,000 35,,000 0.0% Other Financing Sources (inc Transfers In; 900 142,735 947,179 807,000 305,,000 -62 2% Total Revenue 12,122,814 13,951,696 15,376,005 14,081,332 15,429,015 9.6% Expenditures 201,236 340,69,0 427,307 513,072 519,,,662 1 3% Salaries & Wages & Benefits 4,147„'154 4,,608,627 6,695,920 6,047,871 6,647,404 9 91% Supplies 61,434 86,736 75,653 88,378 161,800 71.8% Services 2,322,786 2,344,471 2,942,305 3,414,259 4,208,978 23 3% Capital Outlays 690 177,785 408,440 290,550 199,650 -313°! Debt Service - Principal - - - - - 13 8% Debt Service - Interest - - - - - 3 6% Other Financing Uses (inc Transfers Out; 2,557,991 5,215,827 8,633,561 6,731,548 4,217,346 -37 3% Total Expenditure 9,0190,054 12,332,345 17,755,869 16,572,607 15y425,177 -6.9% Net Change in Fund Balance 3,0132,760 1,619,351 12,379,H5) 12,491,275 3,838 -100 2% Ending Fund Balance 5,311,932 6,931,283 4,551,418 4,440,00 4,555,256 -7.3% Fund Bal. 8-15 % of Revenue 43.8% 49.7% 29.65 31.5% 29.5% 11/1,11MIM, "R MAS 1, General Fund - Expenditures by Devartment Mayor 8 Council 106,706 120,157 140,095 189,085 222,854 179% City Manager 332,053 369,151 293,367 343,128 314,758 -8 3% City Attorney 473,,441 483,604 448,565 588,574 625,,288 62% COMMUnications - - 40,000 75,000 79,479 6 0% HUrnan Resources 201,236 340,69,0 427,307 513,072 519,,,662 1 3% Planning & Development Services 1,009,602 1,108,49,2 1,508,062 1,709,512 2,509,217 46 8% Finance Department 411,,311 465,764 675,928 706,9,87 766,351 84% Police Administration 493,686 552,993 940,084 939,214 1,091,702 16 2% Police Operations 2,568,333 2,791,357 3,467,339 3,237,486 3,731,219 15 3% Police Training 7,,474 21,073 24,485 36,700 41,750 13 8% City Clerk 271,868 294,89,6 371,078 400,9,69 415,,503 3 6% Contracts & Intergovernmental 687,300 663,083 887,939 1,162,998 984,,339 -154% PEG Access 1,571 1,716 1,275 9,725 9,000 -7 6% Non -Departmental (inc Transfers OLF[p 2,525,476 5,119,470 8,530 344 6,735,168 4,114,156 38.9% Total Expenditures 9,094,054 12,332,345 17,755,8159 16,647,607 15,425,177 -7.3% Mayor & Council Goal Statement: To provide cogent strategic guidance and policy direction as elected leaders and positive change -makers for the community they represent and serve, clearly understood and operationalized by City staff. 2024 Key Goal: • Mayor and City Council are equipped with the tools and technical know-how to do their jobs well on behalf of the community they serve. • Leverage relationships with AWC, including participation in their board of directors and conferences. 2024 Work Plan: • Restore training budgets across departments and prioritize professional development opportunities for staff and Councilmembers. • Develop a handbook and enhanced, coordinated, and regular training. November 20, 2023 All Funds Combined Summary Page 1 of 41 City Manager Goal Statement: To deliver integrated, strategic, and sustainable value from the City organization to the community by operational izing 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. 2024 Key Goal: • Organization aligns short and long-term decision-making with the foundational work of the Financial Sustainability Initiative, bringing strategy and synergy to the City's work and our success in partnering and stewarding our collective future with the community we serve. 2024 Work Plan: Multi-year, coordinated strategic advancement of parks, streets, housing, and core services initiatives, including compelling and informative narratives and robust partnerships for delivery. City Attorney and City Clerk 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. 2024 Key Goal: • Public records scanning and organization. • Further technology refinements in Chambers 2024 Work Plan: • Support other departments in work plan items, particularly Mountain View leases, ODT and OGWS land acquisition, shoreline master program, non -motorized plan update, and critical areas ordinance. 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. 2024 Key Goal: • Develop an integrated communications strategy. • Build community trust through investing in relationships and the City's voice. • Facilitate kindness & connectivity in community dialogue while welcoming diverse viewpoints. • Support public education around the City's work with a focus on financial sustainability. November 20, 2023 All Funds Combined Summary Page 2 of 41 2024 Work Plan: • Collect, analyze, and utilize data on functionality and engagement across our channels, including city newsletters, website, social media, and department outreach. • Build staff capacity for inclusive communications skills and equitable engagement strategies with training and efficient systems. • 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. Human Resources Goal Statement: To recruit, develop, and retain a high -performing and diverse workforce. To create and support a culture of growth and development, accountability, engagement, productivity, and effective communication. 2024 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. 2024 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. 2024 Key Goal: • Complete Phase I scoping of the 2025 Comprehensive Plan Periodic Review process and initiate Phase 2 to update elements and implementation actions for the plan with additional appendices including an Urban Forestry Plan, Housing Needs Assessment and Housing Action Plan as well as an update to the Multimodal Transportation Plan. Prepare docket of November 20, 2023 All Funds Combined Summary Page 3 of 41 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, ADU's, and permitting timelines. • Streamline the process of adding housing units to the development pipeline with policy, regulatory, and procedural improvements. • Obtain state funding to 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. • Initiate Critical Areas Ordinance update according to Best Available Science. • Obtain state funding through HB 5290 to final e -permitting enhancements to support customer stakeholders and construction/housing data analysis reporting. 2024 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 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. 2024 Key Goal: • Work closely with the City Council and City Leadership to deliver Council actions from Financial Sustainability Initiative. 2024 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. November 20, 2023 All Funds Combined Summary Page 4 of 41 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. 2024 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. • 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. 2024 Work Plan: • Sustainable staffing for Police Team • Chief's Cabinet/Advisory Forum • Strategic Planning • Path to Accreditation November 20, 2023 All Funds Combined Summary Page 5 of 41 City of Port Townsend Street Operations Fund Budget Detail and Summary Expenditures Salaries & Wages & Benefits 2021 2422 24,23 2423 1424 IncreaselDec'reasE Street (Fund 84,211 73,.981 114,8817 132„952 128,.928 2424 Proposed vs Services ;actual Actual Forecast Budget Proposed 2023,,Budget Beginning Fund Balance 419,889 474,444 479,484 479,484 446,696 84 5% Revenues - - - Taxes - - - - - Licenses & Permits 231 231 - - - -53.,6% Intergovernmental SenAces 199,,842 2815,329 2818,543 213,,58181 214„818181 f1.2% Charges for Goods & Seneices 872 1„8158 - - - Fines &, Penalties - - - - - Miscellaneous Revenue 18,,,711 7,184 4„517 7519 7„588 98181.81%a Other Increases - - - - - Other Financing Sources (inc Transfers In) 6991,959 823,0198 1,81812,378 957,,525 1,383,5813 424% Total Revenue 9,19,375 1,438,877 1,2,83,437 1,171,775 1, 58,5, 35.3% Expenditures Salaries & Wages & Benefits 185,.779 185,.117 248,3813 248„711 286,.828 15 3% Supplies 84,211 73,.981 114,8817 132„952 128,.928 -4.6%a Services 455„7814 515,.845 623,9301 8815„983 878,.788 12 81%0 Capital Outlays - 77,.9811 217,534 132„58181 244,.5811 84 5% Debt Service - Principal - - - Debt Service - Interest - - - - Other Financing Uses (,inc. Transfers Out) 179,1581 179„1581 181„8581 534,,,1581 247.843 -53.,6% Total Expenditure 8-64,844 1,431,794 1,286,224 1.654.276 11584,880, A.2:% Met Change in Fund Balance 54,531 5,484 (7 2,787)1 1482;504) 12,3 Ending Fun -d Balance 474,444 479,484 446,696 13,417) 446,819, Fund Bal. 2-3 of Ex iiBnditures 54.9116 46.5% 31.6% -41.29 25�.7`l Lf 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. 2024 Key Goal: • A primary goal of this division is to continue to migrate away from right of way mowing and focusing 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. The extent of which this work can continue will depend on funding availability and a sales tax vote associated with the formation of a Transportation Benefit District. • Another primary goal is to development implementation strategies associate with the General Sewer Plan and the need to inspect and rehabilitate the aging sewer collection system. November 20, 2023 All Funds Combined Summary Page 6 of 41 2024 Work Plan: • The division will continue implementing 2023 banked capacity funding for road restoration associated and complete the work in 2024. • Depending on funding availability, the work will include development of a strategy to address failed streets such as Lawrence and to perform specific roadway reconstruction. • Support the construction of Discovery Road. • Implement the Comprehensive Streets Program. • Implement the recently awarded USDA street tree planting grant. • 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. • Subject to funding, purchase sewer pipe video inspection equipment and develop a rigorous inspection program to prioritize pipe rehabilitation projects. • 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. November 20, 2023 All Funds Combined Summary Page 7 of 41 City of Port Townsend Library Fund Budget Detail and Summary 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 as corners of library work Link to library's strategic plan: L.1� s:// ull,:�llliclllill,:�irair .oir /elites/defau.lt/flilles/flilleattacll�iii-rieiiits/Illill,)ir it / a e/� .. IL............................p,,,p,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,y,,,,,,,,,,,,,,,,,,,,g,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,y,p,gllll..... it dt :.....::::::..::.. 2024 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. November 20, 2023 All Funds Combined Summary Page 8 of 41 2021 2022 2023 2023 2024 Increase/Decrease Library Fu ind Actual Actual Forecast Budget Proposed2024023 Bu sed vs 2023 Budget Beginning Fund Balance 366,497 523,690 587,341 587,341 554;467 Revenues Taxes 1,137,083 1,132,139 1,185,029 1,193,155 1.,229,00,5 30% (Licenses & (Permits Intergovernmental Services 649 1,00,0 Charges for Goods & Services - - - Fines & (Penalties 636 1 135 403 - - Miscellaneous Revenue 18,479 9,849 12,637 10,750 17,500 62.8°x6 Other Increases - - - - - Other Financing Sources (iri Transfers In) Total Revenue 1,156,848 1,143,123 1,199,069 1,203,905 1,246,505 3.51 Expenditures Salaries & Wages & Benefits 528,510 614 872 721,005 714,430 731,752 24% Supplies 73,022 100,869 115,761 102,218 93,779 -8.3% Services 380,,467 363.117 388,671 397,647 419,902 56% Capital outlays 17,656 614 6,505 3,000 1,000, -66.7% Debt Service - (Principal - - - - - Debt Service - Interest [Other Financing Uses (inc Transfers out) Total Expenditure 999,6540 1,079;472 1,231,943 1,217,295 1,246;433 2.41 Net Change in Fund Balance 157,193 63,851 (32,873) (13,390) 72 -1010.6% Ending Fund Balance 523,690 587,341 554;467 573,951 554,539 Fund Balance 5-B of Tax Rev. 46.1% 51.9% 46.8% 48.1 % 45.1 "Y 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 as corners of library work Link to library's strategic plan: L.1� s:// ull,:�llliclllill,:�irair .oir /elites/defau.lt/flilles/flilleattacll�iii-rieiiits/Illill,)ir it / a e/� .. IL............................p,,,p,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,y,,,,,,,,,,,,,,,,,,,,g,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,y,p,gllll..... it dt :.....::::::..::.. 2024 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. November 20, 2023 All Funds Combined Summary Page 8 of 41 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. 2024 Work Plan: • Library Capital Projects: Pink House restoration, window replacement, bathroom remodel • Help roll out a year-long community kindness (or play like PTAC suggested) campaign with tangible and visible participatory elements. • Help further produce "How Your City Works" programs and materials. iIIIIIN ,a, �. rc�,'w gyp,'° %;:g� s ,� �,IIIII� �.,' �,IIIII� rc��'° rc�,'°" 911111 " �,IIIII� " r �.,. ��. " �. ,. " �., s �,IIIII� %';; r s gyp, w .� �i.,� .� ��.,: u u ���.,:II a II a �.� , u u ���.. U �i.,� � u u �� �..�g.� � u�..� a �� .� �.,: a ���.,� IIS .� a .� �..� u m ,..� it . � � ir�.,�a.,��. �� a .� .� ii.,��.., .� u � � I u u ���.,: a ���., u�.,: � baIaincfing r::ve'inu4i:"'s aaide IIeve'Is of s4i irM1,Jce. November 20, 2023 All Funds Combined Summary Page 9 of 41 City of Port Townsend Lodging Tax Fund Budget Detail and Summary Lodging 'Tax (Beginning Fund Balance Revenues sed Actual Actual Forecast Budget Proposed 2g2.41 dopte vs 21➢23 AAdapted 178,655 415,628 721,405 721,405 9446,6441 Taxes 525,070 602,167 585.876 525,080 525,000 0.0% Licenses 8 (Permits - - - - - Intergovernmental Services 288,230 Charges for Goods 8 Services 367;868 Fines & Penalties - - - - - Miscellaneous Revenue 124 3.426 7,223 750 10,400 1233.3% Other Increases - - - - - Other Financing Sources (inc Transfers In) 415,628 Tectal Revenue 525,203 605,593 ® 593,898 526,750 535,000 1.8% Expenditures Salaries 8 Wages 8 Benefits Supplies Services Capital Outlays Debt Service - Principal Debt Service - Interest Other Financing Uses Qinc. Transfers Out) Tectal Expenditure Net Change in Fund Balance (Ending Fund Balance Sufficient to Meet Ola 40,000 75 0,00 75,199 0.3°x6 125,185 149,641 195,412 296,243 309,918 4.6% 38,045 25,175 7,448 15,000 20,0,00 33.3% 125,000, 125,000 125,00,0 125,0,00 125,0,00 0.0'°A 288,230 29,9,816 367;868 511,243 530,117 3.71 236,973 385,777 225,238 144,507 4,883 -66.3% 415,628 721,406 9416,64141 735,912: 951,527 Goal Statement: • • f Lodging Tax AdvisoryCommittee's]Cs) vision of . . 1touris is to reinvest community• • enhance the lives of both residents1 visitors. 2024 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 2024 Work Plan: • Provide support to the Port Townsend Creative District in the implementation of the Arts and Culture Plan (funded by LTAC in 2023), and the Soundcheck Festival; • Continue the Community Grants program; • Fund continued operations at the Port Townsend Visitor Information Center (VIC) including staffing regular business hours, maintaining the EnjoyPT website and social media accounts, and collection of data for visitation, lodging, and economic impact; • Collaborate on marketing with LTAC member organizations and others, with the PT VIC, OPTC, and PT Main Street as primary partners to attract visitors to Port Townsend in the shoulder seasons (January through April, October through December); • Continue support for downtown winter lighting and collaborate with Main Street and others on interpretive signage in downtown and uptown; • Broaden our participation and contributions within the regional tourism sector; • Plan infrastructure projects to be implemented within the next two years; November 20, 2023 All Funds Combined Summary Page 10 of 41 City of Port Townsend Combined - Community Services Fund Budget Detail and Summary Revised for 2024 Budget iii iii iii lii Seiwliices 1.5III iii ° ��ReIIINaceiii,Y & I ���eseiwe Community Sirs 2021 20,22 2023- 2023 2024,lincreaser, 191SC'= 2024,Pro Actua 11 Actua[ Forecast Rudget Proposed 2023 Budget Revenures, 638,952 167,746 174,725 546,305, 654,839 Not Taxes 609,611 602,024 168,714 2 1 Licenses & Permits - - - Intergovernmental Services 11,602 100,000 63,000 - - Charges for Goods & Services 21,797 5,735 47,172 4,000 4,000 Fines & Penalties - - - - - MiscellaineOLIs Revenue 178,801 79,588 49,142 37,550 49,550 Other Increases 16,242 24,95,8 10,372 2,000 2,000 Other Financing Sources (Inc. Transfers In) 1,25,5,693 1,285,607 2,191,612 2,436,35,2 2,633,462 Tota[ Revenue 2',,043,745 2,097,912 7,912 2,53,0,,012 2,479,904 2,6-89,013 Expenditures Salaries,& Wages & Benefits 722,325 825,,003 95,6,572 1,046,258 1,128,543 Supplies 193,880 169,250 2:07,331 227,569 222,056 Services 851,328 925,954 1,115,424 1,112,085 1,245,060 C3Pit3I OUtI3VS 3,702 31,954 115,845 85,000 85,000 DeIM Service - Principal - 60,000 - - - Debt Service - Interest - 3,75,0 - - Other Financing Uses (inc. Transfers Out) 19,803 21,020 6,011 7,000 Tota[ Expenditure 1j91,038 2,0M,931 2,401,1'83 2,477,913 2,680,660, I Net Change iin Fund Ballance, Ending Fund Balance Fund BaL 2-3'% of Expenditures Cit/ Facilities 10 o u nti an A ew Facilities Parks Maintenance Parks Strategy Events Pool Non -Departmental (inc. Transfers Out), Tota[ Expenditures, 392,70,6 60i"901 128,229 l'-q'sl 535,954 596,936 7215,765 598,927 29.9%, 293'% 3112%, 24.21'a, 566,338 638,952 167,746 174,725 546,305, 654,839 Not - - AV3.i]3b,le 1,305 320 488,142 390,001 21,203 84,321 1,791,038 `!,M31 50 862,2'15 198,201 776,45,8 273,424 339,490 28,125 2477,913, 8,3,5,3, 734x 118 - 27,4' 34,1182T.4 1,117,430 180,101 892,312 124,427 366,389 510.0% 0.0% 32.0% 0.0% 0.1% MEW 7.9% -2.4% 12.0% 0.0% -100.0% 8.2% 3104.5' 29.6% -9.1% 14.9% -54.5,% 7.9% -100.0% 8.2%, November 20, 2023 All Funds Combined Summary Page 11 of 41 City of Part Townsend COMMUNITY SERVICES PARKS FUND BUDGET SUMMARY Community Svs 2021 2022 20,23 x023 2024 In c re,a s,eQe crea se 2024,Proposed vs 2023,, Parks Fund Actuaf Actuaf Forecast Budget Proposed Ruldigiel Regibrift Fund Balance Revenues, Taxes I Licenses & Permits Intergovernmental Senijces - Charges for Goods & Sen)ices 4,000 Fines Penalties - Miscellaneous Revenue 20,000 Other Increases 2,000 Other Financing nancing SOUrces (inc. Transfers In), 1,352,207 Tota[ Revenue 11,386,20,8 Expenditures Salaries & Wages & Benefits 5158,869 Supplies 106,951 Services 677,308 Capital O'Lltl3YS 40,000 Debt Service - Principal - Debt Service - Interest Other Financing Uses (inc. Transfers Out) - Tiot,a li E xpend Au rie, 1„383,12'8- Niet Chanigie, in Fund Ballancie 3,080 Ending Fund BalAnce 3,1380, Fund Rat., 2-3 '%of Expenditures 0.2"x© ' Community Servi,ces, Fund - Expenditures by, Department Parks Maintenance 743,315 Parks Strategy 273,424 Events - Pool 366,389 Non -Departmental (inc. Transfers Out) - T�ot,all Expenditures, 1,383,128 November 20, 2023 All Funds Combined Summary Page 12 of 41 Cityof Part Townsend EQUIPMENT RENTAL & REPLACEMENT FUND Fund 530 & 535 Facilibes BUDGET SUMMARY Internal Services Fund Begilnning Fund Bafiano:e 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 Other Financing Uses (inc. Transfers Out) Toted Expenditure , etual Actual Forecast Budget Propos,ed 21,550 1,281,255. 1,H2,8135 569,67 1154,105 567,752 45,000 1,247,5311 INN tChange m Fund Balance 5,274 Ending Fund R3atanee Fuund Real. 2-3 -of F.nupenditures 'rurcmmmvmiinift C43rtuirc-c Rind _ ryn City Facilities Mountian View Facilities Total Expenditures Community Services — Facilities, Parks - 5,274 0.4'% 1,117,430 180,101 2024 Proposed vs 2!0,23 Budget Goal Statement: The City of Port Townsend Community Services Department is a Division of Public Works. The Department has the primary responsibility of managing and maintaining city buildings and parks, stewarding the pool contract with the YMCA and the golf contract for operations, and stewarding leases on the Mountain View Campus. Additionally, the division expenses include funds for Strategic Parks Strategy in the form of salary and services support. Strategic Parks Strategy is a short-term expense to facilitate sustainable parks funding and to develop a vision for recreation and parks for the future including addressing the future of the golf course and development of a new pool. 2024 Key Goals: • 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. November 20, 2023 All Funds Combined Summary Page 13 of 41 • Achieving facilities goals is reliant on ain addlitliw4� n, tlirrie employee for janitorial support included in this year's budget proposal. This strategy will provide the time for the skilled employees to perform proactive maintenance and special projects such as small remodels that are 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. 2024 Work Plan: • The facilities division will complete the City Hall HVAC, and a City Hall remodel as budgeted. The division also will recommend strategies for Pink House and Pope Marine for restoration opportunities. • The facilities division will assist and support the library remodel projects associated with windows and restroom restoration. • The parks division will complete the kitchen shelter and install trail signage based on the 2022 banked capacity funding. • The facilities division seeks to perform a buildings assessment and capital improvement plan to better understand investment needs based on proactive maintenance. • The parks division has the goal of rehabilitating the Kah Tai restrooms and fill the recently created care take site. • 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. • Mountain View Leases will be evaluated and re -negotiated to develop financially sustainable building operations. • Participate in open space planning and the Non -Motorized Plan update associated with the Comprehensive Plan update. • Apply for Resource Conservation Office funding. • Subject to funding, demolish the Golden Age Club and Parks House buildings which have fallen into disrepair. November 20, 2023 All Funds Combined Summary Page 14 of 41 City of Port Townsend Water & Sewer Operations Fund Budget Detail and Summary Water & Sewer Operations .r ...t h ...t 1..t d decrease d .t d ..t 1 1 II n��i:� �::: i i. ir/ .�i.. ,i.. it N.,Ny.., d.. ire.,: i u u �� II N.,� a �� � shows .� �..: fid.. N.. �d.. �..:.�d.. u u �� II L � u �� � II�.,:II�..: a ��N., d.. � �i.,�d.. �N,..N i ��..: a �� .� II d.. it .� N.,NL� i �N,.,N .� �i.,� IL., y.., N..N irHm .., ..., f ..., . : rate w w w ., ,::, ::, . ::, ., rr ,. ,::, ,::, . �� , the d,.., .� d,..,+,r” 4,... Ir Ir�..: i i.. ,.r � ll.,J! d � � II .� .� N,.. Iii i,... d � i�„J! Il d,..,d � � N,.,N II"�d,.., N,., N,..N 11 ii a ll,."?' Il i,... �i,.. d �.��d,..,Ir �.�II1�d� m��d,..,+,d,..,Ir �,.. �.�,."?III��:� 4, II,.,JIII1�d� „�,N�. � d� d� II�IIN,;NN'1��:� . d d ..r i, i„ ...r budget d ...r r i„ d d d r, i, i, (, ( N, r. , 4, ,„, �„� N, N , "?14, , r. , N, N r. , ” N N , 4, 4, . 4, . N, 4, . N, 4, ., �w rate 4, . N, 4, .r , , �w 4, . , �w r- N, , "?I r , 4, . N, N r , 4, ., �w, �w uu�� �......�.... I�r�u..I�� ,uIIII ..: � fir...... ..g...ir..:iu..N��..:II II�.� �..i �..IIu..N..u��..N..... �"� ir..:i.. uu��..�....:.... u.. ..:u��iu..NIL ..:i.. � i.. ..: � fir...... .., we ]H d 1 increases .d,rg .d...td ,,, d„ .d,rg 1.d .d .td .d .d ,,.„ N needs 4 N 4 N cost N 4 4 4 N tl d 4 N 4 4 4 4 N tl N h 4 4 .. �.,"� IL., u i �.,r 11 a �� .... � .� �.,:.� .. II II �.,:.� .,N y.., .. ir�.,r i u ..N a �� �.,"� II ...,N .� i u u �� .. � .. �.,:.� ...� .......... � u u �� u u �� II n �.,: i u ..N a �� ir�.,r i ...� .... IL., .. it N .. a �� .... � ..N �� .. it the .. II �.,:. N years 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. 2024 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 in order to make the system more reliable and minimize distribution system leakage. November 20, 2023 All Funds Combined Summary Page 15 of 41 2021 2022 21323 2023 2024 Increaselaecrease Water Sew1 er op 2024 Propose¢I vs Actual ^actual F¢arec,ast Budget Prcal�aseel 2023 Bridget Licenses & Permits - Intergovernment,al Services 497 Charges for Goods &, Services 6,948,217 T,480„449 T„390„488 7.,537.,,785 8.,002.,,548 6.2% Fines & Penalties - - - - - Miscellaneous Revenue 112,995 121,052 76,133 101,000 115„000 13 9% Other Increases - 80,000 - - - Other Financing Sources (inc Transfers Inp 1,249,801 1,855,334 1,707„456 1,6-94„824 1,243,581 -26 6% Total Revenue 8,311,510, 9,516,8.35 9,174,077 91,333,609 9,361,129 0.307 Expenditures Salaries &, Wages & Benefits 2,2:60,36,8 2„331.,2.51 2,490„763 2 &2:9.„12:0 3,,,058,727 16.3°! Supplies 430,451 523,532 599,,670 617,,828 614„505 -0 5% Services 3,4,23„599 3„958„482' 4„469,„310 4,42.0.,,104 4„84,2,,,538 9,6% Capital Outlays - 46,109 14,,594 263,,700 487„727 85 0% Debt Service -Principal 1,244,501 1,248,889 1,147,.187' 1,172„882 1„120,.253 -4 5% Debt. Service - Interest 177,744 154,,920 158,528 160„436 150427 6 2% Other Financing Uses (inc. Transfers OL]tp 111,152: 876,970 1,269,,954 1,199,,208 1,029,309 142% Total Expenditure 7,647,815 9,148,,153 10,150,007 10,463,278 11,303,486 8.0"Aa Net Change in Fund Balance 66.3,695 36,8,68.1 $975,930) 11,129,669) 1,942,357) 71.9 Ending Fund Balance 3,713,168- 4,08,11,850 3,105,920 2,952,,180 1,163,563 60, Days of Operating Expenses 177 163 112 10,3 38 FALSE Water Sewer Fund - Expenditures by Department Utility Billing 42: 524,505 597,390 737,422 748„823 785,580 4 9% Water Disribut,ion 403 2,278„381 3„279„32,3 2„973,813 2 76,2,74,2 3,254,898 1T.8% Water Quality ErWTF 404 2029,888 2,147,383 2,423„897 2,784,„849 2„983,.273 71% Wastewater Treatment 405 1,4,2,5„751 1„516„143 1„6,25,826 1,719,302 2,475,.839 44.0% Wastewater Collection 406- 8T0,611 1,088,510 1,809,,558 1,837,,555 1,075,,190 -41 5% Biosolids 407 518,879 519-,405 579„691 610,007 728,.707' 19 5% Non -Departmental (inc. Transfers Out) '000 - - - - - Total Expenditures 7,647,815 9,148-,1533 10,150,007 10,463,278 11,303,486 8.0°1q Water & Sewer Operations .r ...t h ...t 1..t d decrease d .t d ..t 1 1 II n��i:� �::: i i. ir/ .�i.. ,i.. it N.,Ny.., d.. ire.,: i u u �� II N.,� a �� � shows .� �..: fid.. N.. �d.. �..:.�d.. u u �� II L � u �� � II�.,:II�..: a ��N., d.. � �i.,�d.. �N,..N i ��..: a �� .� II d.. it .� N.,NL� i �N,.,N .� �i.,� IL., y.., N..N irHm .., ..., f ..., . : rate w w w ., ,::, ::, . ::, ., rr ,. ,::, ,::, . �� , the d,.., .� d,..,+,r” 4,... Ir Ir�..: i i.. ,.r � ll.,J! d � � II .� .� N,.. Iii i,... d � i�„J! Il d,..,d � � N,.,N II"�d,.., N,., N,..N 11 ii a ll,."?' Il i,... �i,.. d �.��d,..,Ir �.�II1�d� m��d,..,+,d,..,Ir �,.. �.�,."?III��:� 4, II,.,JIII1�d� „�,N�. � d� d� II�IIN,;NN'1��:� . d d ..r i, i„ ...r budget d ...r r i„ d d d r, i, i, (, ( N, r. , 4, ,„, �„� N, N , "?14, , r. , N, N r. , ” N N , 4, 4, . 4, . N, 4, . N, 4, ., �w rate 4, . N, 4, .r , , �w 4, . , �w r- N, , "?I r , 4, . N, N r , 4, ., �w, �w uu�� �......�.... I�r�u..I�� ,uIIII ..: � fir...... ..g...ir..:iu..N��..:II II�.� �..i �..IIu..N..u��..N..... �"� ir..:i.. uu��..�....:.... u.. ..:u��iu..NIL ..:i.. � i.. ..: � fir...... .., we ]H d 1 increases .d,rg .d...td ,,, d„ .d,rg 1.d .d .td .d .d ,,.„ N needs 4 N 4 N cost N 4 4 4 N tl d 4 N 4 4 4 4 N tl N h 4 4 .. �.,"� IL., u i �.,r 11 a �� .... � .� �.,:.� .. II II �.,:.� .,N y.., .. ir�.,r i u ..N a �� �.,"� II ...,N .� i u u �� .. � .. �.,:.� ...� .......... � u u �� u u �� II n �.,: i u ..N a �� ir�.,r i ...� .... IL., .. it N .. a �� .... � ..N �� .. it the .. II �.,:. N years 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. 2024 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 in order to make the system more reliable and minimize distribution system leakage. November 20, 2023 All Funds Combined Summary Page 15 of 41 • 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 is in the process of completing an update to the General Sewer Plan including an evaluation of nutrients as part of the city's nutrient permit and evaluation of the compost facility/septage handling. • The wastewater division will be implementing new sewer rates and begin to implement capital improvements identified in the sewer plan. • The wastewater division will implement a rigorous sewer inspection program to prioritize pipe rehabilitation investments. 2024 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 evaluation, 1 MG standpipe coating design, cathodic protection of the OGWS, 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, Wastewater Treatment Plant rehabilitation projects, purchase of a video inspection truck for pipeline condition assessments, and preparation for the 2022 banked capacity investments at Pacific Street. • 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. November 20, 2023 All Funds Combined Summary Page 16 of 41 City of Port Townsend Stormwater Operations Fund Budget Detail and Summary S'tormiwa'ter Beginning Fund Balance Revenues Taxes (Licenses & Permits Intergovernmental Services Charges Charges for Goods & Services Fines & Penalties Miscellaneous Revenue Other Increases Other Financing Sources (inc. Transfers In) Total Revenue 2021 21022 2023 2023 20248 Increase/Decrease Salaries & Wages& Benefits 284,075 311,131 340,546 20244 Proposed vs Actual Actual Forecast Budget Proposed 2023 Budget 429,86.8 738,471 6711,661 677,661 770;4410 449,786 1,153,186 1,2.3,6,391 1,2.19,416 1,173,074 1,199,324 2.2% 2,293 6,015 6,790 750 12,000 1500.0% 1,155,479 1,2442;4406 " 1,22;6-,266 1,173,824 1,211,3244 3.2% Expenditures Salaries & Wages& Benefits 284,075 311,131 340,546 352,9,49 461,731 30.8% Supplies 40.,995 36,701 643,414 72,908 79,127 8.5% Services 414,581 414,581 449,786 480,577 497,764 522,1661 4.9%n Capital Outlays - 9,033 _ 6,000 11,000 0.0% Debt Service - Principal 47,791 49,225 50,702 50,702 50,702 0.0% Debt Service- Interest 33,570 32,1341 30,660 30,660 30,660 0.0%n Other Financing Uses (inc. Transfers Out), 25,864 415,205 164,558 625,000 615,515 -1.5% Total Expenditure 8.446,876 1,303,217 1,133;4457 1,636,9,82 1,765,901 7.9°l CNet Change in Fund Balance Ending Fund Balance 60 Days of Operating Stormwater Operations Goal Statement: 368,6103 (60,811), 92,749 (4462,158) (5544,577) 20.0 738,471 6-77,661 7710,410 215,503 215,833 316 190 2446 488 68111% 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. 2024 Key Goals: • The Streets division continues to transition the shift of resource investment from vegetation control to street repair. In particular, stormwater management is a key function that needs to be restored prior to street investments. The division will spend considerable time in 2024 working on restoring ditches and making small drainage improvements. • Capital improvements on the stormwater system are also necessary. Much of the stormwater infrastructure is lacking or in a state of disrepair. In particular, Lawrence Street stormwater November 20, 2023 All Funds Combined Summary Page 17 of 41 is piped into the Sanitary Sewer System and thus a new pipeline is needed in Lawrence Street. 2024 Work Plan: • The Stormwater system rates are anticipated to be completed implemented by April 1, 2024 • Stormwater investments are included in the Discovery Road project to be completed in 2024. • Staff will begin the process of 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 2024. November 20, 2023 All Funds Combined Summary Page 18 of 41 City of Port Townsend Equipment Rental & Replacement Fund Budget Detail and Summary ERR 2021 202`2 2023 2023 2024 IncreaseJIDecrease (internal Service (Fund) Actual Actual Forecast Budget Proposed 2024 Pro vs Udgd 202,3 BBudget Beginning Fund Balance 1,785,705 2,111,904 2,427,297 2,427,297 2,727,509 Revenues Taxes - - - Licenses &, Permits - Intergovernrnental Services 279 - - - - Charges for Goods & Services 1.133,734 1,201 854 1,213 476 1,216,225 1,443,822 18 7% Fines & Penalties - - - - - Miscellaneous Revenue 10,378 22,923 21,672 2,000 35,000 1108 9% Other Increases 1,359 850 - - - ather Financing Sources (inc Transfers In) - - - Total Revenue 1,154,749 19225,627 1,2.35,147 1,2:19,125 1,478,822 21.3% Expenditures Salaries &Wages & Benefits 386,185 398,074 357,691 375,837 496,753 32 2% Supplies 135,918 169,257 191,842 185,189 207,900 123% Services 184,057 22.7„164 191„8755 217„830 223„195 2..5% Capital Outlays 133,847 114,889 193,727 975,205 1,577,245 817% Debt Service - Principal - - - - Uebt Service - Interest - - 4ther Financing Uses (inc., Transfers Out( 8„543 850 - - - TDtal Expenditure 828,551 910,2,34 934,935 1,754, k61 2,505,093 42,.8`Sia Net Change in Fund Balance 328,199 315,393 300.212' (,534,936) (1,026,271) 91.8`39 Ending Fund Balance 2,111,904 2,427,297' 2,727,509 1,892,361 1,701,238 Sufficient to Meet Obligations ��((//JJ �l�/ I Fleet Rental & Replacement 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. 2024 Key Goal: • Purchase of a new screen for the City Compost Facility, three replacement pickups, and a video inspection system for sewer and stormwater pipes. Additional purchases may be necessary depending on budget availability for multiple other supporting equipment. • Subject to funding, purchase of hot mix asphalt repair equipment to allow the street division to transition from cold mix to hot mix street repair. 2024 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. • Continue to evaluate implementation of electric vehicle conversion. November 20, 2023 All Funds Combined Summary Page 19 of 41 Information Technology (IT) Rental & Replacement 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 City also replaces aging equipment across all City departments based on equipment age and functional needs. 2024 Key Goal: • Support departments at all levels with technology needs through computer hardware, software programs and technology -related projects. d.. d d..., � d d..., d d d r d d„ d..., d d d d d..., d..., d rd..., d..., ., u�� a ... �� u u �� II a �� II ..� irn �r �� �.,: � u ..� a �� II ..... I�� a �� ..� II ..� � ..��.,� II .� a .� it ... II a �.,: a �� � ..� � �� �.,: a �� �.,: � � u � u ..� � �� �.,:II II n.,� II II � u u ii a ... .., a ii a IL., II ..� � ...... II o r u ,, irI, ,� IId r�,� d � d �� II y s . . , d �� �a d �� � d U . d ,,� � �a � year's ,, t � a d,t ILD pd s ,II . 2024 Work Plan: Improve IT infrastructure, robustness, and cybersecurity. Support the City's preparedness for disasters, including support of a continuity of operations plan. November 20, 2023 All Funds Combined Summary Page 20 of 41 City of Port Townsend Public Works Administration Fund Budget Detail and Summary PWM Admiiln 2021 2022 2023 2023 20244 Increase/Decrease 202dU Proposedege vs (Internal Service FUlndl Q � Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance a3, 403 9,0,290 139,877 139,877 235, 444 Revenues Taxes _, _, _ _ Licenses & Permits Intergovernmental Services 97 - - - - Charges for Goods & Services 50,9,6439' 540,445 680.3,45 680',345 680„345 0.0% Fines & Penalties - - - - - Miscellaneous Revenue 2,383 740 74,386 83,893 4,,5DO -91.1% Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - - - 180,000 Total Revenue 512,1301 5441,185 7544,731 7644,238 867,8445 13.6 Expenditures Salaries &, wages &, Benefits 411,191 387,578 309,584 441,100 520„843 18.0% Supplies 2,180 3,898 2,994 3,689 8,85.2 80.3% Services 61,872 1100,122 346,586 323,588 339„25,9 4.8%n Capital Outlays - - - 2,500 1,000 -60.0%e Debt Service - Principal - - - Debt Service - Interest Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 4475,2443 4491,598 659,164 770,878 867,5544 12.5�% Net Change in Fund Balance 3+6,887' 449,587 95,587 (6,640) 291 -1044,441 Ending Fund Balance 9,0,290 139,877 235,4444 133,237 235,735 Sufficient to Meet Obligations 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. 2024 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. 2024 Work Plan: • Subject to budget and filling the City Engineer position, this division will lead the development and implementation of a parking management plan. November 20, 2023 All Funds Combined Summary Page 21 of 41 • This division will lead the completion of rate studies for the stormwater utility as well as the sewer utility. • 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 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 Parks Strategy effort. • Support the HR Department with training and skills development program. • Support implementation of the Comprehensive Streets program, particularly associated with banked capacity projects. • Support Planning and Community Development Department in Open Space Planning and Buildable Lands Inventory as part fo the Comprehensive Plan periodic update. • Support 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. • Support work with Jefferson County regarding Glen Cove UGA expansion possibilities. November 20, 2023 All Funds Combined Summary Page 22 of 41 November 20, 2023 All Funds Combined Summary Page 23 of 41 City of Port Townsend CONTINGENCY FUND BUDGET SUMMARY 2021 2022 2023 2023 2024 Increase/Decrease Contingency Fund Actual Actual Forecast Budget Proposed 2024 Proposed vs 2023 Budget Beginning Fund Balance 201,716 201,827 203,144 203,144 263,274 Revenues Taxes - - - - - Licenses & Permits - - - - - Intergovernmental Services - - - - - Charges for Goods & Services - - - - - Fines & Penalties - - - - - Miscellaneous Revenue 111 1,317 130 150 - -100.0% Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - 60,000 - 45,000 Total Revenue 111 1,317 60,130 150 45,000 29900.0% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - - - Services - - - - - CapitalOutlays - - - - - Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure - - - - - Net Change in Fund Balance 111 1,317 60,130 150 45,000 29900.0% Ending Fund Balance 201,827 203,144 263,274 203,294 308,274 Fund Balance must be less than Assessed Valuation: 2,806,305,510 37.5 cents per $1,000 1,052,365 Fund Balance 2% of GF Rev 1.7% 1.5% 1.7% 1.3% 2.0% FALSE November 20, 2023 All Funds Combined Summary Page 23 of 41 November 20, 2023 All Funds Combined Summary Page 24 of 41 City of Port Townsend ARPA American Rescue Plan Act Fund BUDGET SUMMARY 2021 2022 2023 2023 2024 Increase/Decrease Contingency Fund 2024 Proposed vs Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 2,299,505 2,299,505 847,229 Revenues Taxes - - - Licenses & Permits Intergovernmental Services Charges for Goods & Services Fines & Penalties Miscellaneous Revenue Other Increases - Other Financing Sources (inc. Transfers In) 2,755,388 Total Revenue 2,755,388 Expenditures Salaries & Wages & Benefits - Supplies Services Capital Outlays Debt Service - Principal Debt Service - Interest - - - - Other Financing Uses (inc. Transfers Out) 455,883 1,452,277 1,712,000 860,807 -49.7% Total Expenditure 455,883 1,452,277 1,712,000 860,807 -49.7% Net Change in Fund Balance 2,299,505 (1,452,277) (1,712,000) (860,807) -49.7% Ending Fund Balance 2,299,505 847,229 587,505 (13,578) Sufficient to Meet Obligations 0.0% 16.5% 5.5% 3.8% -0.1% November 20, 2023 All Funds Combined Summary Page 24 of 41 November 20, 2023 All Funds Combined Summary Page 25 of 41 City of Port Townsend REAL ESTATE EXCISE TAX FUND BUDGET SUMMARY 2021 2022 2023 2023 2024 Increase/Decrease REET Actual Actual Forecast Budget Proposed 2024 Proposed vs 2023 Budget Beginning Fund Balance 468,587 801,111 1,203,130 1,203,130 1,109,891 Revenues Taxes 842,221 941,896 675,547 700,000 675,000 -3.6% Licenses & Permits - - - - - Intergovernmental Services - - - - - Charges for Goods & Services - - - - - Fines & Penalties - - - - - Miscellaneous Revenue 303 6,420 11,767 1,500 20,000 1233.3% Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - - - - Total Revenue 842,524 948,316 687,315 701,500 695,000 -0.9% Expenditures Salaries & Wages & Benefits - - - - - Personnel Benefits - - - - - Supplies - - - - - Services - - - - - CapitalOutlays - - - - - Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) 510,000 546,296 780,553 748,625 704,700 -5.9% Total Expenditure 510,000 546,296 780,553 748,625 704,700 -5.9% Net Change in Fund Balance 332,524 402,019 (93,238) (47,125) (9,700) -79.4% Ending Fund Balance 801,111 1,203,130 1,109,891 1,156,005 1,100,191 Sufficient to Meet Obligations November 20, 2023 All Funds Combined Summary Page 25 of 41 November 20, 2023 All Funds Combined Summary Page 26 of 41 City of Port Townsend FIRE/EMS FUND BUDGET SUMMARY 2021 2022 2023 2023 2024 Increase/Decrease Fire/EMS 2024 Proposed vs Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 7,277 9,668 7,302 7,302 7,361 Revenues Taxes 5,957 2,917 748 4,000 - -100.0% Licenses & Permits - - - - Intergovernmental Services Charges for Goods & Services Fines & Penalties Miscellaneous Revenue 1 1 Other Increases Other Financing Sources (inc. Transfers In) - - - - Total Revenue 6,968 2,919 748 4,000 -100.0% Expenditures Salaries & Wages & Benefits - - - - Supplies - - - - Services 3,666 5,185 689 4,000 -100.0% Capital Outlays - - - - Debt Service - Principal Debt Service - Interest Other Financing Uses (inc. Transfers Out) Total Expenditure 3,666 6,186 689 4,000 -100.0% Net Change in Fund Balance 2,291 (2,267) 69 - - Ending Fund Balance 9,668 7,302 7,361 7,302 7,361 Sufficient to Meet Obligations � November 20, 2023 All Funds Combined Summary Page 26 of 41 November 20, 2023 All Funds Combined Summary Page 27 of 41 City of Port Townsend AFFORDABLE HOUSING FUND BUDGET SUMMARY 2021 2022 2023 2023 2024 Increase/Decrease Affordable Housing 2024 Proposed vs Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 41,438 87,659 83,937 83,937 67,234 Revenues Taxes 118,265 93,090 6,112 30,001 30,000 0.0% Licenses & Permits - - - - - Intergovernmental Services - - - - - Charges for Goods & Services - - - - - Fines & Penalties - - - - - Miscellaneous Revenue 28 375 81 100 - -100.0% Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - 70,000 70,000 65,000 -7.1% Total Revenue 118,292 93,465 76,193 100,101 95,000 -5.1% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - - - Services 10,176 35,291 31,000 31,000 31,000 0.0% Capital Outlays - - - - - Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) 61,896 61,896 61,896 61,896 61,896 0.0% Total Expenditure 72,072 97,187 92,896 92,896 92,896 0.0% Net Change in Fund Balance 46,221 (3,722) (16,703) 7,205 2,104 -70.8% Ending Fund Balance 87,659 83,937 67,234 91,142 69,338 Sufficient to Meet Obligations November 20, 2023 All Funds Combined Summary Page 27 of 41 November 20, 2023 All Funds Combined Summary Page 28 of 41 City of Port Townsend COMMUNITY DEVELOPMENT BLOCK GRANTS BUDGET SUMMARY 2021 2022 2023 2023 2024 Increase/Decrease CDBG 2024 Proposed vs Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 191,957 163,539 159,317 159,317 157,979 Revenues Taxes - - - - - Licenses & Permits - - - - - Intergovernmental Services 40,170 15,718 18,533 20,000 20,000 0.0% Charges for Goods & Services - - - - - Fines & Penalties - - - - - Miscellaneous Revenue 101 995 129 150 - -100.0% Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - - - - Total Revenue 40,270 16,713 18,662 20,150 20,000 -0.7% Expenditures Salaries & Wages & Benefits - - - - - Personnel Benefits - - - - - Supplies - - - - - Services 68,689 20,935 20,000 20,000 20,000 0.0% Capital Outlays - - - - - Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 68,689 20,935 20,000 20,000 20,000 0.0% Net Change in Fund Balance (28,418) (4,222) (1,338) 150 - -100.0% Ending Fund Balance 163,539 159,317 157,979 159,467 157,979 Sufficient to Meet Obligations November 20, 2023 All Funds Combined Summary Page 28 of 41 November 20, 2023 All Funds Combined Summary Page 29 of 41 City of Port Townsend GENERAL OBLIGATION DEBT SERVICE BUDGET SUMMARY 2021 2022 2023 2023 2024 Increase/Decrease G.O. Debt Service 2024 Proposed vs Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 97,548 155,559 396,019 396,019 637,798 Revenues Taxes 457,333 634,987 208,807 150,001 150,000 0.0% Licenses & Permits - - - - - Intergovernmental Services - - - - - Charges for Goods & Services - - - - - Fines & Penalties - - - - - Miscellaneous Revenue 293 6,874 6,763 1,000 10,000 900.0% Other Increases - - - - - Other Financing Sources (inc. Transfers In) 1,302,467 1,309,180 2,661,657 2,644,637 967,896 -63.4% Total Revenue 1,760,093 1,951,040 2,877,227 2,795,638 1,127,896 -59.7% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - - - Services 1,326 2,400 1,250 2,500 2,500 0.0% Capital Outlays - - - - - Debt Service - Principal 1,053,485 1,286,413 2,190,574 2,190,266 542,580 -75.2% Debt Service - Interest 647,272 421,767 443,624 606,250 523,100 -13.7% Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 1,702,082 1,710,580 2,635,448 2,799,016 1,068,180 -61.8% Net Change in Fund Balance 58,011 240,460 241,779 (3,378) 59,716 -1867.8% Ending Fund Balance 155,559 396,019 637,798 392,641 697,514 Sufficient to Meet Obligations November 20, 2023 All Funds Combined Summary Page 29 of 41 November 20, 2023 All Funds Combined Summary Page 30 of 41 City of Port Townsend GENERAL CAPITAL PROJECTS BUDGET SUMMARY 2021 2022 2023 2023 2024 Increase/Decrease General CIP 2024 Proposed vs Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 428,597 403,246 960,239 960,239 511,423 Revenues Taxes - - - - - Licenses & Permits - - - Intergovernmental Services 500,000 298,545 656,400 -100.0% Charges for Goods & Services - - - Fines & Penalties - - - - - Miscellaneous Revenue 237 22,875 14,544 1,000 12,500 1150.0% Other Increases - (1,490) - - - Other Financing Sources (inc. Transfers In) 34,524 248,820 1,080,328 881,500 379,807 -56.9% Total Revenue 34,761 770,205 1,393,417 1,538,900 392,307 Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - - - Services 34,524 24,808 18,630 18,630 18,630 0.0% Capital Outlays 11,914 190,054 1,747,178 2,235,659 621,028 -72.2% Debt Service - Principal - - - - - Debt Service - Interest - - - - Other Financing Uses (inc. Transfers Out) 13,675 (1,651) 76,424 74,000 Total Expenditure 60,113 213,211 1,842,233 2,254,289 713,658 -68.3% Net Change in Fund Balance (25,352) 556,994 (448,816) (715,389) (321,351) -55.1% Ending Fund Balance 403,246 960,239 511,423 244,850 190,072 -22.4% Sufficient to Meet Obligations i November 20, 2023 All Funds Combined Summary Page 30 of 41 November 20, 2023 All Funds Combined Summary Page 31 of 41 City of Port Townsend STREET CAPITAL PROJECTS BUDGET SUMMARY 2021 2022 2023 2023 2024 ease Street CIP Proposed vs Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance (71,221) 110,420 195,118 195,118 1,046,381 Revenues Taxes - - - - - Licenses & Permits - - - - - Intergovernmental Services 550,738 461,383 959,188 503,775 3,981,146 690.3% Charges for Goods & Services - - - - - Fines & Penalties - - - - - Miscellaneous Revenue 39 787 2,456 500 187,500 37400.0% Other Increases - 2,055 - - - Other Financing Sources (inc. Transfers In) 78,044 243,010 1,412,300 1,261,006 243,393 -80.7% Total Revenue 628,821 707,234 2,373,944 1,765,281 4,412,039 149.9% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - - - Services 78,044 45,182 34,978 34,978 34,978 0.0% Capital Outlays 369,136 572,778 1,487,703 6,631,080 5,410,510 -18.4% Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) - 4,576 - - - Total Expenditure 447,180 622,536 1,522,681 6,666,058 5,445,488 -18.3% Net Change in Fund Balance 181,641 84,698 851,263 (4,900,777) (1,033,449) -78.9% Ending Fund Balance 110,420 195,118 1,046,381 (4,705,659) 12,932 Sufficient to Meet Obligations November 20, 2023 All Funds Combined Summary Page 31 of 41 November 20, 2023 All Funds Combined Summary Page 32 of 41 City of Port Townsend STORMWATER CAPITAL BUDGET SUMMARY 2021 2022 2023 2023 2024 Increase/Decrease Stormwater CIP 2024 Proposed vs Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance (188,184) 579 26,773 26,773 12,240 Revenues Taxes - - - - - Licenses & Permits - - - - - Intergovernmental Services 230,215 - - - - Charges for Goods & Services - - - - - Fines & Penalties - - - - - Miscellaneous Revenue 480,023 351 188 200 - -100.0% Other Increases - - - - - Other Financing Sources (inc. Transfers In) 532,474 102,836 131,019 335,000 598,655 78.7% Total Revenue 1,242,712 103,187 131,207 335,200 598,655 78.6% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - - - Services 9,014 22,185 14,755 29,510 10,000 -66.1% Capital Outlays 1,044,935 54,809 130,985 591,970 598,665 1.1% Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 1,053,949 76,994 145,740 621,480 608,665 -2.1% Net Change in Fund Balance 188,763 26,194 (14,533) (286,280) (10,010) -96.5% Ending Fund Balance 579 26,773 12,240 (259,507) 2,230 Sufficient to Meet Obligations November 20, 2023 All Funds Combined Summary Page 32 of 41 City of Port Townsend Olympic Gravity Water System (OGWS) BUDGET SUMMARY 2021 2022 2023 2023 2024 Increase/Decrease Water Sewer CIP 2024 Proposed vs Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 630,243 545,057 1,837,082 1,837,082 4,911,303 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 Suoolies Capital Outlays Debt Service - Principal Debt Service - Interest Other Financing Uses (inc. Transfers Out)*— Total Expenditure Net Change in Fund Balance Ending Fund Balance - 2,464,976 4,448,410 - 338 130 23,454 4,472,500 54,079 - 6 420,000 54,417 2,465,106 4,471,870 4,892,500 86,900 5,043,382 105,000 5,235,282 50,777 628,024 1,397,650 1,127,134 1,175,645 34,747 - - - - 52,632 - - - - 1,447 - - - - - 545,056 - 429,000 890,100 139,603 1,173,080 1,397,650 1,556,134 2,065,745 (85,186) 1,292,026 3,074,220 3,336,366 3,169,537 545,057 1,837,082 4,911,303 5,173,448 8,080,840 -97.7% -100.0% 7.0% 4.3% 107.5% 32.7% -5.0% November 20, 2023 All Funds Combined Summary Page 33 of 41 November 20, 2023 All Funds Combined Summary Page 34 of 41 City of Port Townsend WATER/SEWER CAPITAL BUDGET SUMMARY 2021 2022 2023 2023 2024 Increase/Decrease Water Sewer CIP 2024 Proposed vs Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 2,471,741 2,564,787 2,038,034 2,038,034 1,125,477 Revenues Taxes - - - - - Licenses & Permits - - Intergovernmental Services - - 1 191,500 - -100.0% Charges for Goods & Services 1,427,205 1,440,830 1,406,924 1,461,329 1,461,329 0.0% Fines & Penalties - - - - - Miscellaneous Revenue 1,407 17,992 18,835 1,427,500 4,344,900 204.4% Other Increases - 62,715 - - - Other Financing Sources (inc. Transfers In) 248,726 1,606,515 396,685 697,500 2,975,315 326.6% Total Revenue 1,677,338 3,128,052 1,822,445 3,777,829 8,781,544 132.4% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - - - Services 41,409 24,895 17,917 17,917 17,917 0.0% Capital Outlays 215,301 1,648,270 1,290,642 1,374,000 7,310,472 432.1% Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out)*** 1,327,582 1,981,640 1,426,444 2,083,824 1,668,519 -19.9% Total Expenditure 1,584,292 3,654,805 2,735,002 3,475,741 8,996,908 158.8% Net Change in Fund Balance 93,046 (526,753) (912,557) 302,088 (215,364) -171.3% Ending Fund Balance 2,564,787 2,038,034 1,125,477 2,340,122 910,114 Sufficient to Meet Obligations I.** Operating Transfers include funding Water Capital Debt Service in the Water/ Sewer Operating Fund November 20, 2023 All Funds Combined Summary Page 34 of 41 November 20, 2023 All Funds Combined Summary Page 35 of 41 City of Port Townsend GOLF COURSE FUND BUDGET SUMMARY 2021 2022 2023 2023 2024 Increase/Decrease Golf Course 2024 Proposed vs Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 6,251 5,484 2,500 2,500 1,882 Revenues Taxes - - - - - Licenses & Permits - - - - - Intergovernmental Services - - - - - Charges for Goods & Services - - - - - Fines & Penalties - - - - - Miscellaneous Revenue 8,363 8,041 9,055 25,000 16,000 -36.0% Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - 11,000 - 5,000 Total Revenue 8,363 8,041 20,055 25,000 21,000 -16.0% Expenditures Salaries & Wages & Benefits - - - - - Supplies 1,045 177 - 15,000 16,000 6.7% Services 8,085 10,849 20,672 9,672 5,000 -48.3% Capital Outlays - - - - - Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 9,130 11,026 20,672 24,672 21,000 -14.9% Net Change in Fund Balance (767) (2,984) (617) 328 - -100.0% Ending Fund Balance 5,484 2,500 1,882 2,828 1,882 Sufficient to Meet Obligations miW November 20, 2023 All Funds Combined Summary Page 35 of 41 November 20, 2023 All Funds Combined Summary Page 36 of 41 City of Port Townsend SYSTEM DEVELOPMENT CHARGES BUDGET SUMMARY 2021 2022 2023 2023 2024 Increase/Decrease SDCS 2024 Proposed vs Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 1,105,953 1,463,326 2,156,674 2,156,674 2,671,469 Revenues Taxes - - - - - Licenses & Permits - - - - - Intergovernmental Services - - - - - Charges for Goods & Services 445,530 781,031 807,648 367,440 745,000 102.8% Fines & Penalties - - - - - Miscellaneous Revenue 715 12,317 21,516 2,000 40,000 1900.0% Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - - - - Total Revenue 446,245 793,348 829,164 369,440 785,000 112.5% Expenditures Salaries & Wages & Benefits - - - - - Supplies - - - - - Services - - - - - CapitalOutlays - - - - - Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) 88,872 100,000 314,369 33,500 605,906 1708.7% Total Expenditure 88,872 100,000 314,369 33,500 605,906 1708.7% Net Change in Fund Balance 357,373 693,348 514,795 335,940 179,094 -46.7% Ending Fund Balance 1,463,326 2,156,674 2,671,469 2,492,614 2,850,563 Sufficient to Meet ObligationsW 1 November 20, 2023 All Funds Combined Summary Page 36 of 41 City of Port Townsend EQUIPMENT RENTAL & REPLACEMENT FUND BUDGET SUMMARY ERR 2021 2022 2023 2023 2024 Increase/Decrease 2024 Proposed vs (Internal Service Fund) Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 1,786,706 2,111,904 2,427,297 2,427,297 2,727,609 Revenues Taxes - - - - - Licenses & Permits - Intergovernmental Services 279 - - - - Charges for Goods & Services 1,133,734 1,201,854 1,213,475 1,216,225 1,443,822 18.7% Fines & Penalties - - - - - Miscellaneous Revenue 19,378 22,923 21,672 2,900 35,000 1106.9% Other Increases 1,359 850 - - - Other Financing Sources (inc. Transfers In) - - - - 490,000 Total Revenue 1,164,749 1,226,627 1,236,147 1,219,126 1,968,822 61.6% Expenditures Salaries & Wages & Benefits 366,185 398,074 357,691 375,837 496,753 32.2% Supplies 135,918 169,257 191,842 185,189 207,900 12.3% Services 184,057 227,164 191,675 217,830 223,195 2.5% Capital Outlays 133,847 114,889 193,727 975,205 1,577,245 61.7% Debt Service - Principal - - - - - Debt Service - Interest - - Other Financing Uses (inc. Transfers Out) 8,543 850 - - - Total Expenditure 828,661 910,234 934,936 1,764,061 2,606,093 42.8% Net Change in Fund Balance 326,199 316,393 300,212 (634,936) (636,271) 0.2% Ending Fund Balance 2,111,904 2,427,297 2,727,609 1,892,361 2,191,238 Sufficient to Meet Obligations November 20, 2023 All Funds Combined Summary Page 37 of 41 City of Port Townsend PUBLIC WORKS ADMINISTRATION BUDGET SUMMARY PW Admin 2021 2022 2023 2023 2024 Increase/Decrease 2024 Proposed vs (Internal Service Fund) Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 53,403 90,290 139,877 139,877 235,444 Revenues Taxes - - - - - Licenses & Permits - - - - - Intergovernmental Services 97 - - - - Charges for Goods & Services 509,669 540,445 680,345 680,345 680,345 0.0% Fines & Penalties - - - - - Miscellaneous Revenue 2,363 740 74,386 83,893 7,500 -91.1% Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - - - 180,000 Total Revenue 512,130 541,185 754,731 764,238 867,845 13.6% Expenditures Salaries & Wages & Benefits 411,191 387,578 309,584 441,100 520,643 18.0% Supplies 2,180 3,898 2,994 3,689 6,652 80.3% Services 61,872 100,122 346,586 323,588 339,259 4.8% Capital Outlays - - - 2,500 1,000 -60.0% Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 475,243 491,598 659,164 770,878 867,554 12.5% Net Change in Fund Balance 36,887 49,587 95,567 (6,640) 291 -104.4% Ending Fund Balance 90,290 139,877 235,444 133,237 235,735 Sufficient to Meet Obligations November 20, 2023 All Funds Combined Summary Page 38 of 41 November 20, 2023 All Funds Combined Summary Page 39 of 41 City of Port Townsend ENGINEERING FUND BUDGET SUMMARY Engineering 2021 2022 2023 2023 2024 Increase/Decrease 2024 Proposed vs Internal Service Fund Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 131,824 56,460 71,901 71,901 20,049 Revenues Taxes - - - - - Licenses & Permits - - - - - Intergovernmental Services - - - - - Charges for Goods & Services 719,488 752,563 874,408 1,474,484 1,879,091 27.4% Fines & Penalties - - - - - Miscellaneous Revenue 4,536 267 96 100 - -100.0% Other Increases - - - - - Other Financing Sources (inc. Transfers In) - - - - - Total Revenue 724,024 752,830 874,504 1,474,584 1,879,091 27.4% Expenditures Salaries & Wages & Benefits 626,943 557,838 727,317 850,298 987,964 16.2% Supplies 5,150 4,490 3,502 7,189 10,799 50.2% Services 167,129 159,967 164,356 183,115 188,101 2.7% Capital Outlays 167 15,094 31,181 6,500 9,000 38.5% Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 799,389 737,389 926,356 1,047,103 1,195,864 14.2% Net Change in Fund Balance (75,364) 15,441 (51,852) 427,481 683,227 59.8% Ending Fund Balance 56,460 71,901 20,049 499,382 703,276 Sufficient to Meet Obligations � November 20, 2023 All Funds Combined Summary Page 39 of 41 November 20, 2023 All Funds Combined Summary Page 40 of 41 City of Port Townsend UNEMPLOYMENT RESERVE FUND BUDGET SUMMARY Unemployment 2021 2022 2023 2023 2024 Increase/Decrease 2024 Proposed vs Internal Service Fund Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 25,591 22,232 22,347 22,347 29,202 Revenues Taxes - - - - - Licenses & Permits - - - - - Intergovernmental Services - - - - - Charges for Goods & Services - - - - - Fines & Penalties - - - - - Miscellaneous Revenue 14 116 - - - Other Increases - - - - - Other Financing Sources (inc. Transfers In) 22,631 4,389 10,000 50,000 25,000 -50.0% Total Revenue 22,646 4,505 10,000 50,000 25,000 -50.0% Expenditures Salaries & Wages & Benefits 26,004 4,391 3,145 50,000 25,000 -50.0% Supplies - - - - - Services - - - - - Capital Outlays - - - - - Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 26,004 4,391 3,145 50,000 25,000 -50.0% Net Change in Fund Balance (3,359) 114 6,855 - - Ending Fund Balance 22,232 22,347 29,202 22,347 29,202 Sufficient to Meet Obligations November 20, 2023 All Funds Combined Summary Page 40 of 41 November 20, 2023 All Funds Combined Summary Page 41 of 41 City of Port Townsend FIREMEN'S PENSION FUND BUDGET SUMMARY LEOFF 1 2021 2022 2023 2023 2024 Increase/Decrease 2024 Proposed vs Fiduciary Fund Actual Actual Forecast Budget Proposed 2023 Budget Beginning Fund Balance 277,706 294,572 313,511 313,511 329,524 Revenues Taxes - - - - - Licenses & Permits - - - - - Intergovernmental Services - - - - - Charges for Goods & Services - - - - - Fines & Penalties - - - - - Miscellaneous Revenue 160 - 2,152 - - Other Increases - - - - - Other Financing Sources (inc. Transfers In) 34,235 34,235 34,235 34,235 27,500 -19.7% Total Revenue 34,395 34,235 36,387 34,235 27,500 -19.7% Expenditures Salaries & Wages & Benefits 16,189 13,936 19,028 25,202 25,000 -0.8% Supplies - - - - - Services 1,340 1,360 1,346 1,346 1,360 1.0% Capital Outlays - - - - - Debt Service - Principal - - - - - Debt Service - Interest - - - - - Other Financing Uses (inc. Transfers Out) - - - - - Total Expenditure 17,529 15,296 20,374 26,548 26,360 -0.7% Net Change in Fund Balance 16,866 18,939 16,013 7,687 1,140 -85.2% Ending Fund Balance 294,572 313,511 329,524 321,198 330,664 Sufficient to Meet Obligations November 20, 2023 All Funds Combined Summary Page 41 of 41 CITY OF PORT TOWNSEND - AUTHORIZED POSITIONS Department/Division 2019 2020 2021 2022 2023 2023 Rev 2024 2024 Requested vs 2023 General Government City Manager 2.0 2.0 1.0 1.0 1.0 1.0 1.0 0.0 City Attorney 3.6 2.6 2.0 2.0 2.0 2.0 2.0 0.0 Communications 1.0 1.0 1.0 0.0 Planning & Community Development 8.3 8.3 8.0 8.5 9.5 9.5 10.0 0.5 Finance & Utility Billing UB 6.3 7.5 9.0 9.0 9.0 9.5 9.5 0.0 Police Admin & Operations 20.0 19.81 18.6 20.1 22.1 22.4 22.4 0.0 City Clerk/Human Resources 5.0 4.01 3.6 4.0 5.0 5.0 5.0 0.0 PEG TV Studio 0.0 0.01 0.0 0.0 0.0 0.0 0.0 0.0 Facilities 3.5 4.0 3.5 3.5 3.5 3.5 5.5 2.0 Street 2.2 1.9 1.7 1.7 1.7 1.7 1.9 0.2 Parks Maintenance & Recreation 4.5 4.0 3.5 4.2 4.2 4.5 4.5 0.0 Pool 8.3 8.0 4.0 0.0 0.0 0.0 0.0 0.0 Library 9.6 8.9 8.9 8.9 8.9 8.9 8.9 0.0 Equipment Rental 4.0 4.01 3.0 3.0 3.0 3.0 4.0 1.0 Total General Government 77.3 75.1 66.8 65.9 70.9 72.0 75.7 3.70 Public Works & Utilities (excl UB) 0.0 Public Works Administration 4.2 4.2 2.5 2.5 2.5 3.5 3.5 0.0 Public Works Engineering 6.7 5.4 5.9 6.5 6.5 6.5 6.5 0.0 Utillities 0.0 0.0 Water Distribution 5.5 5.5 5.0 5.0 5.0 5.0 5.0 0.0 Water Quality & Resource 3.5 3.5 4.0 4.0 4.0 4.0 4.0 0.0 Wastewater Collection 2.5 2.6 2.2 2.2 2.2 2.2 2.6 0.3 Wastewater Treatment 3.8 3.6 3.5 3.5 3.5 3.5 5.0 1.5 Biosolids 2.5 2.5 2.5 2.5 2.5 2.5 3.0 0.5 Stormwater 3.3 3.5 3.1 3.1 3.1 3.3 3.8 0.5 Total Public Works & Utilities 31.9 30.8 28.7 29.3 29.3 30.6 33.4 2.8 TOTAL CITY FTES 109.2 105.9 95.5 95.2 100.2 102.6 109.1 6.5 Percentage Change 6.8% Positions not currently counted as FTES 2019 1 2020 Mayor/Council 1 7.01 7.01 * Does not include leave payouts or seasonal positions 2021 7.01 2022 7.01 2023 7.0 2024 7.0 CITY OF PORT TOWNSEND NON -BARGAINING EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE BUDGET 2023, Revised Salary Schedule effective October 2, 2023 Elected Officials REV 10-2-2023 Classification Minimum Maximum Positions Mayor $ 12,300.00 $ 12,300.00 1.00 Councilmembers $ 8,400.00 $ 8,400.00 6.00 Non Represented Employees Classification Minimum Maximum Positions City Manager $ 138,338 $ 198,762 1.00 Public Works Director $ 133,474 $ 163,342 1.00 City Attorney $ 130,896 $ 157,075 1.00 Chief of Police $ 121,079 $ 154,289 1.00 Director of Finance & Technology Services $ 117,806 $ 150,531 1.00 Planning & Community Development Director $ 117,806 $ 143,985 1.00 Parks & Recreation Strategic Director $ 117,806 $ 143,985 1.00 Deputy Public Works Director/City Engineer $ 121,111 $ 150,178 1.00 Assistant City Engineer -4 $ 110,101 $ 136,525 1.00 Deputy Police Chief $ 107,021 $ 130,431 1.00 Parks, Recreation & Community Services Director $ 107,021 $ 130,431 0.00 Director of People & Performance $ 107,021 $ 130,431 1.00 Civil Engineer III $ 100,092 $ 124,114 1.00 Project Manager III $ 95,326 $ 118,204 1.00 Library Director $ 94,899 $ 117,806 1.00 Human Resources Manager $ 91,876 $ 127,256 0.00 Prosecuting Attorney/Assistant City Attorney $ 91,113 $ 112,032 0.00 Planning Manager $ 91,114 $ 112,032 1.00 Civil Engineer II $ 90,786 $ 112,575 1.00 Building Official $ 89,991 $ 107,988 1.00 Parks & Facilities Manager $ 89,991 $ 107,988 1.00 Public Works Operations Manager - WW/Bio $ 89,991 $ 107,988 1.00 Public Works Operations Manager - Water Resources $ 89,991 $ 107,988 1.00 Public Works Operations Manager - Streets/Sewer/Stormwater $ 89,991 $ 107,988 1.00 City Clerk $ 86,980 $ 112,981 1.00 Public Records Officer $ 86,980 $ 112,981 1.00 Operations Manager - Parks, Recreation & Facilities $ 85,082 $ 117,806 0.00 Finance Manager $ 87,691 $ 122,109 1.00 Accounting Manager $ 87,691 $ 122,109 1.00 Project Manager II $ 86,463 $ 107,214 0.00 Communications/Marketing Manager $ 82,844 $ 98,580 1.00 Civil Engineer 1 $ 82,346 $ 102,109 0.00 Senior Planner $ 81,994 $ 104,808 1.00 Temporary Long Range Planner $ 81,994 $ 104,808 1.00 Finance & Budget Analyst $ 81,994 $ 104,808 0.00 Project Manager 1 $ 78,425 $ 97,247 0.00 Library Manager- Public and Technical Services $ 71,856 $ 84,589 1.00 Library Manager- Youth Services $ 71,856 $ 84,589 1.00 Civil Engineer EIT $ 74,690 $ 92,616 0.00 Deputy City Clerk $ 64,194 $ 84,973 0.00 Executive Assistant to City Manager $ 64,194 $ 84,973 0.00 Human Resources Specialist or Generalist $ 64,194 $ 84,973 1.00 Legal Assistant/Deputy Clerk $ 64,194 $ 84,973 1.00 Legal Assistant $ 64,194 $ 84,973 0.00 Payroll and Benefits Administrator $ 64,194 $ 84,973 1.00 Executive Assistant to Chief of Police $ 60,628 $ 80,298 0.00 Human Resources Assistant $ 54,168 $ 67,760 0.50 Navigator $55,680 $ 62,400 1.00 Hourly Part-Time Positions Library Associate MLIS $ 22.71 $ 26.76 0.50 Library Assistant $ 17.13 $ 20.19 3.51 Library Assistant Substitute $ 17.13 $ 17.13 0.54 Library Courier, Library Page $ 15.74 $ 18.55 1.30 Reserve and Seasonal Positions ** Seasonals not included in Total FTE count Reserve Police Officers, commissioned $ 37.79 1.00 Reserve Police Officers, noncommissioned $ 25.00 0.50 Seasonal Workers $ 15.74 $ 18.99 3.00 Total Non-Represented Employees 41.85 CITY OF PORT TOWNSEND UNCLASSIFIED EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE BUDGET 2023, Revised Salary Schedule per Resolution 23-034 Classification Minimum Maximum Positions Housing Grants Coordinator to be determined 0.50 Total Unclassified Employees 0.50 CITY OF PORT TOWNSEND UNION/REPRESENTED EMPLOYEE POSITION CLASSIFICATION SALARY SCHEDULE BUDGET 2023, Revised Salary Schedule effective October 2, 2023 Union/Represented Employees Classification Minimum/hr Maximum/hr ** Positions IT Network Administrator $ 43.85 $ 49.77 1.00 Accountant $ 37.81 $ 42.90 1.00 Associate Planner $ 36.49 $ 44.14 1.00 Crew Chief $ 35.79 $ 40.66 1.00 GIS Coordinator $ 35.13 $ 39.94 1.00 IT Technical Support $ 35.13 $ 39.94 0.00 Building Inspector $ 34.30 $ 38.97 1.00 Code Compliance Officer $ 34.30 $ 38.97 1.00 Public Works Inspector $ 34.30 $ 38.97 1.00 Crew Chief Apprentice $ 34.30 $ 38.97 1.00 Maintenance Worker III (Lead) $ 33.30 $ 37.82 4.00 Fleet Technician III (Lead) $ 33.30 $ 37.82 1.00 Wastewater Treatment/Compost Operator III (Lead) $ 33.30 $ 37.82 1.00 Police Records Lead $ 33.30 $ 37.82 1.00 Assistant Planner $ 32.75 $ 37.19 0.00 Finance Specialist $ 32.75 $ 37.19 0.00 Land Use Specialist $ 32.75 $ 37.19 0.00 Project Accounting Specialist $ 32.75 $ 37.19 1.00 Purchasing/Contracts Specialist $ 32.75 $ 37.19 0.00 Mechanic $ 31.79 $ 36.12 0.00 Maintenance Worker II $ 31.09 $ 35.18 12.25 Fleet Technician II $ 31.09 $ 35.18 0.00 Wastewater Treatment/Compost Operator II $ 31.09 $ 35.18 0.00 Finance Tech III $ 28.04 $ 31.83 1.00 Police Clerk $ 28.04 $ 31.83 1.00 Public Works/Engineering Support Specialist III $ 28.04 $ 31.83 0.00 Permit Technician III $ 28.04 $ 31.83 0.00 Parks, Rec & Community Services Admin Support Spec $ 26.03 $ 29.47 0.00 Public Experience Liaison $ 26.03 $ 29.47 3.00 Utility Billing / Collection Specialist $ 26.03 $ 29.47 1.00 Permit Technician II $ 26.03 $ 29.47 0.00 Community Services Officer $ 25.56 $ 29.23 1.00 Finance Tech II $ 25.56 $ 29.23 0.00 Maintenance Worker 1 $ 25.56 $ 29.23 7.00 Fleet Technician 1 $ 25.56 $ 29.23 0.00 Wastewater Treatment/Compost Operator 1 $ 25.56 $ 29.23 0.00 Permit Technician 1 $ 25.56 $ 29.23 2.00 Public Works/Engineering Support Specialist 11 $ 25.56 $ 29.23 0.00 Maintenance Worker Apprentice $ 24.72 $ 28.08 0.00 Fleet Technician Apprentice $ 24.72 $ 28.08 0.00 Wastewater Treatment/Compost Operator Apprentice $ 24.72 $ 28.08 0.00 Administrative Assistant $ 24.72 $ 28.08 0.00 Public Works Administrative Assistant $ 24.72 $ 28.08 0.00 Police Officer $ 37.79 $ 43.37 12.00 Sergeant $ 48.58 $ 53.14 3.00 Total Union/Represented Employees **max pay does not include longevity or other premiums as may be applicable 60,25 TOTAL CITY POSITIONS (Excluding Elected Officials, Seasonals & Reserve Officers) 102.60 Comprehensive Financial Management Policy Guidelines Page I of 22 City of Port Townsend Comprehensive Financial Management Policy Guidelines Adopted July 16, 2018 Formatted: Indent: Left: 0", Right: 0" Comprehensive Financial Management Policy Guidelines Page 2 of 22 Comprehensive Financial Management Policy Guidelines Page 3 of 22 Comprehensive Financial Management Policies Index L FINANCIAL POLICY GUIDELINES...................................................... II. ORGANIZATION.................................................................................... III. ACCOUNTING, AUDITING AND FINANCIAL REPORTING ......... IV. FUND STRUCUTURE & FUND RESERVE GUIDELINES ............... V. REVENUE POLICIES............................................................................. VI. OVERHEAD COST RECOVERY (COST ALLOCATION) ................ VII. GENERAL BUDGET POLICIES......................................................... VIII. FINANCIAL PLANNING POLICIES ................................................ IX. ENTERPRISE FUNDS........................................................................... X. CAPITAL INVESTMENT PROGRAM PLAN POLICIES .................... XI. DEBT MANAGEMENT POLICY......................................................... XII. PURCHASING POLICY...................................................................... XIII. GRANTS MANAGEMENT POLICY ................................................ /1-�. 1.3 ;'1 76 109 ....................d.2 p. .................... :d,1 2 .................... .................... ....................:d ....................d 71 ....................d :1 M!. Comprehensive Financial Management Policy Guidelines Page 4 of 22 L 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. IL 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 Management Policy Guidelines Page 5 of 22 The °md of, ➢, unI° ce & ➢ a,a;gonlor o� 4,rvuces, 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 qnmyi',tui R;^,i0a F00 Mid 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, fiF , uiii,aiieory -ire iv�i i,sbuilding 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 &5-;00(-P - k /,,'- -X). in value that have an anticipated life of one year or more.) Capital assets ae tracked by the Finance Departmen 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. Formatted: Highlight Formatted: Highlight -------- ---------------------- ---- Commented [CAI]: Capital asset threshold should be increased. Comprehensive Financial Management Policy Guidelines Page 6 of 22 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 $300$500, but less than $5,00019;7-'500. These items have a life -Commented [cazl: if we change oapitai asset threshold, expectancy of more than one year AND are not likely to be immediately missed upon ( this should fall in line. disappearance. These items are generally mobile in nature and may be easily transported from the workplace. Some exceptions to the $3001;'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 Dirrg jorr of Finance and Aihyiiurdrriiduva��F ➢es;gouiasgog) Services (➢ uui°iuia;e Directorip has oversight responsibility for u�,,, 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 ➢, iuv uwe Ne, Aahyfiusu.rduinfi%e, Ower^ ices of ll' uui°iunp,,eF y, ➢ e �,;gouiaigaii�„� a �asrrua;�;, 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 [irri iuicc & A( nasi R punipurre, ,,'e rr uccsDirector Director of, ➢, a uld a, j;q ioa (M �[ ucess (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 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. Comprehensive Financial Management Policy Guidelines Page 7 of 22 • 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 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 Comprehensive Financial Management Policy Guidelines Page 8 of 22 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. CONTINGENCY (102) — While classified as a Special Revenue Fund, the City's Contingency Fund is more of a strategic reserve to meet emergency conditions or to help maintain essential services during periods of economic downturn. Each fund should retain enough in its own Ending Fund Balance Reserves to offset minor non-recurring or unanticipated expenses during the budget year. The City's Contingency Fund is intended for major events and should be maintained at no less than 2% of the General Fund annual operating revenues. If the contingency falls below 2% of operating revenue, the City will initiate a plan that will restore the balance to the required level over a three-year period. 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. Comprehensive Financial Management Policy Guidelines Page 9 of 22 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 aauid ➢�au fifi(,S, 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 The following is a summary of the reserves guidelines. Guidelines will be reviewed annually as a part of the Budget process: • General Fund ........................................... 8-15% of operating revenue • Library ..................................................... 5-8% of property tax • Street........................................................ 2-3% of expenditures • Community Services ............................... 2-3% of expenditures • Other Special Revenue Funds ................. Sufficient to meet obligations • Contingency ............................................. No less than 2% of operating revenue • Debt Service ............................................ Sufficient to meet obligations • General Capital ........................................ Sufficient to meet obligations • Enterprise Funds ...................................... 60 days of operating expenditures • System Development Charges Fund (Enterprise) ....Sufficient to meet obligations • Internal Service ........................................ Sufficient to meet obligations • Fiduciary Funds ....................................... 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. Comprehensive Financial Management Policy Guidelines Page 10 of 22 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. Restricted revenue shall only be used for th�e 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 Comprehensive Financial Management Policy Guidelines Page 11 of 22 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 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 an -d Pool Fees – p bsw p''a°«p slaw ssia°ss �n sp➢ a uw � kc� a�e� a�w � ��-��Q "� a�dh'a°a�ll � a° ��et �e y C ecsF6,sty-opo s �P�w faa u9uPa; Commented [HG3]: Do we need this? 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 quid poop user groups. Funds collected for any special purpose shall be earmarked for that purpose. �Vj, OVERHEAD COST RECOVERY (COST ALLOCATION) Commented [CA4]: CPA firm is updating methodology and ( policy approach to include in the 2024 budget. - -- - -- - As provided in the State Auditor's Office guidelines, "Cost allocation is a method to Commented [CASR4]: Update to the Cost allocation determine and assign the cost of central services to the internal -government users of those plan is still in process as of 11-11-2023. 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 jointpurposes, benefiting more than one unit, not readily assignable to a specific unit (e.g. legal, human resources, administration, clerk, etc.). Comprehensive Financial Management Policy Guidelines Page 12 of 22 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. 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. 1V/IIK" 11►111:.11a.1011"Do801alei IV 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 Comprehensive Financial Management Policy Guidelines Page 13 of 22 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 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 costlof $5-1-000 / 00commented lcael: should increase threshold following or more will be reviewed to time such expenditures at stable intervals to preserve cash ( decision around capital assets. flow, when possible. Deferment of regular repair and maintenance will not be used to (,Formatted: Highlight balance the budget. Trainin! 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 ° s employees. At: a,�„A /� ...a"";°ad ung f; 1 /o o the department's budgeted salary expense Awa r�Fu.,, RNXMYMNNedl nilloc;,fl d 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��'�� u�a;aF �,�tauu�tR�.�prr�ap� Q-Gwaa�ua,a ��u�a�;d ll�urraFa;dar, ar llun�°,lu�a;aF�au�a leclguIol�og) ;es 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 Comprehensive Financial Management Policy Guidelines Page 14 of 22 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. The Finance Director will monitor unanticipated needs or emergency expenditures and prepare gamendments.,aollga;u ua,u�ds in compliance with State Law. re budget a�„ VIII. 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: o Total revenues and expenses per capita. o 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, replacement capital costs, debt Comprehensive Financial Management Policy Guidelines Page 15 of 22 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. ►•4KOKI91K1w19LTA 11Yu101918Utrel":7IuIUKIM 01atoIOki 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: • wfic,r floc, prroJecf s aos fid life, wall exceed floe, teen arl'tbe l'hir ura;ung_ Debt; p°a� r>Iun its s,lo°al,�urarf exfa Viral ber ar id floc, asf unu°afn,aluss,faol fife and floa;trrrarinn:J N,uu . dour°aura; l l loa, t; ufr s all l a,a p flag a",vt „Q un afaurrrtr and iia uta rr al arbfi afuor is boulds at ars gpa,lar,aa if 2� , 30 � utrs tourlesss,lra,a,a al a;ura,auuru.,faaura,n,., mouse aanauunaaafuuai; floc, ura,a,al far --f Formatted: Not Highlight (,Meid floc, ala,N, s;loa ladle • When project revenue or specific resources as identified will be sufficient to service the debt, • When projects grn, der f_ a ui 1000,000 cannot be c as b i'auuaded dour°aura;Q l arur as qr°ar . W; r aral, lMar lr aSi s iI1-olIu anlfua; p ated c as,l florrs,, 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). �� � ��rrnaurf nru afa;lo lal�., l flfl,flflfl rr loa,rra, �'auuraluurlM. n l aaurfua;ugr�,�fn,al d'rrarulru arur lM.arunrlM a, as,l>< dlarrror reserve lr & ui ass. Comprehensive Financial Management Policy Guidelines Page 16 of 22 G.... DaJanr k,. s dk ua 1; V 00„000 vv qo rre faiuvfillg k aauad„uaJp adQ;aBaaua as pair„ as arao,,,,,i,o basis .s, carr reserveqp, d aulces,, drraaun auu,adua;ula°adQ a8 a,�as,go i'ovv 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, 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 Comprehensive Financial Management Policy Guidelines Page 17 of 22 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. 11��IO:tymET.yl9[0t111000LI1 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 Dii- clot aa(' Finance & Aahxauuiktntfio, (, ➢ Q,a touioa og) _Services (➢, uua°auaq� s 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. Xxxx ,ID EC''1'1➢, 'tlyK' 11JNl)S l'l➢,A1y ➢F1kl l q,,,,,,, i., aaou.,a;u>E,ya,uad,, aauaa,,, a:�:h,�QaVaVrt; 1"a',llll`lla,Vah V7rllu„� �0.aa S, Ba,luFrca safe)atlaa Q, Vrt�Va,Vah V7rllQ,h,,, �0.aa hQa IllQart,u„�.� u paa;a,usQ,la°a(arua Ws deal 0tu q-agsi, less (jtlaaaquc; k to esaabfisgo fle goes g-wtgoa ds to. saaaaa;as , qa°as a ua uada, dal a,svugagaas c s) agvj yQ,usa on; hi adda halos, (jtg22fia ( k to es aabfisgo floe, gaas,d usrua,dgoara8s, tea ua,a;a,uaa, qa°a(a�ruagoda, iaaau>ry a,ao.,daau>ruaas, aauaal a'.a,uaa8arrrs, t,la,a;daaasnua; qa°a(a�ryq,uad;: uarua,dgoa ds un a( �aIc lde E]a,a;daaauawc ll aouaa8,;` ➢ nmol fee CET l , ),/\aodaau>ruated CLaihig ll ➢obit ll Wua-a, ➢ areae ,da,u , a;pa,alud q.;°apal aauaa deNt can] i (' u uua°aual;� QF �, Qn,t IQ, �aa"a:a;daaa” � �Va4a 4a " auFV"� Vrt,uF, VVa"auaa;;paF lall"u:�;t,daV" V'1 ffl li7Cll"aVVahBaVn aalu uuys,u.,danaduaQ� as aa,a�adul(t� gaaaaa;Q .laouQs, town aa°age saaouaal a,�;daaaaoua , ; d'aouaal da�(f<,da,a gaarpna,ua,!i. aa,... aauaa inaaa as aoaQ„ ro CFormatted: Font: (Default) Tahoma, 11 pt XIII. GRANTS MANAGEMENT POLICY �Formatted: Normal, Indent: Left: 0" 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 Comprehensive Financial Management Policy Guidelines Page 18 of 22 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. Accountin! 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 be sent to the Director arH' �nvmce „r�ra& Aa&u u�nr�R�p.rrvrp�ra, GwPllr ua,a,R�ll �q Q,a;darr ark,' ll uur°aura; < y, ➢ a,a;q,n�ior og) a„4,ur ua,es 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. Comprehensive Financial Management Policy Guidelines Page 19 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. margarg3 Services,,, Director,,lwill b The Durrrr;darrrat mance a�mru��r�;�prrd�krraF ar;o.. uur°aura;a.F., approve financial institutions to be eligible to conduct investment business with the City, in accordance with Washington State Law. The DurrQr;darrro,Finance & ltahru��rkprraarraF➢Qr; oiar art".3' Services (ll, uur°aura;al Director,,l 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. APPENDIX B- CITY OF PORT TOWNSEND FEDERAL AWARDS STANDARDS 12ROCUREMI-141F LUkIf4 & CODE OF CONDUCT Comprehensive Financial Management Policy Guidelines Page 20 of 22 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 Commented [CA7]: Include updated policy to address issuance or redemption of checks, warrants, or payment by other means. ( electronic payments as identified by SAO • 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: • Be necessary and reasonable for the performance of the Federal award; • 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 Comprehensive Financial Management Policy Guidelines Page 21 of 22 or a prior period, 9 Be adequately documented. Men propert ' Y aw] servnces llwhr a hxjeraf award, the Otly of' Port P)WHSeRd WFN fOHW 2OW44 §200�"P 44ioratfil-olopfi §20"w26 (�oMitmet provMsionis or (�41a, of Port Wwo6eod pi-oeedoroS wh"chcver k amore restricfive I fic foflowM Ig tabh, ootfiaws ruplh-(,aYlcuts wfieoi osiip ]4Ader'd PooEk� Pipoeu poilviloilit Goo&,� &0 lips: kwi IMIA41114)(I Miffo-420.MFORSO -- 1'40 $3;000 OF 6iS km4s 44H61 HWI FFIOH, FO(rhHOFYO 44H61 MW MOFe fl,MM, kFEMISR10F )IiOO HS hfil�u,4loM RMAHOFY0 $3;000 f�Ode#A Mid; k)" IlO hIlFOAKAJ i�YMN Pff6fiffSO ,,PWM IS40;000 0,;Foy4e 8P;P00 $40;000 0,;FwY4 ProeokkwkAS tr�N.J(A): P;000 tri-tde): P;000 8;6 4)04 (hifoliYtol) -01-44ifl/ (Mofti tmde)� M;�;w)0 H\41ofti 4-ade)� $30)(A) -, doeowioHt qootes (No]i 144Apd;;r(No�i 144AF� boort a WoO,w� pro.jee6) MIolibel� OklHHfifi&J SOHFO(M4 (W, 44H61 HSO FF10FO 44H4 offe IYiol�f IewA pAlFee):: v �Awek44d RMAHOFY0 CAY dIlF4lOM f oMead of "S "50:000 FRM(Htd oP Jr S 1,4:Aelilf i4-4ed PVkk/ (;owq)04kvo "S404AM or VIi4we 0;FfI?k& 'S40;000 OF HIORA (,`;HllfPlkr WKIS (I'4fl-NA) hFff(,1(,): $()jY9A) OF MOFe tMdO)$45;MA) OF MOFe 0414W &�50;000 or 04 U� &50;WA) ol: HIORA (NoVi I444w VIiolre 04)1� I444w W014,S 12FOI&AS) Woi4,s Proj&As) AM4 HSe AhMI MW MOFe RMAHOFYe RMAHOFY0 oMead wt stead of Commented [CAS]: Verify this aligns with the purchasing policy ----------------------------------------------------------------------------------------------------------------- Commented [CA91118]: @Ffeidi Greenwood Will you verify that the current purchasing policy replaces all this lanugage? Commented [HGIORS]: @Conme Anderson I found lots of references and reminders to check federal requirements, but I did not find anything specific like this table. Comprehensive Financial Management Policy Guidelines Page 22 of 22 CorttrdtOs fort r uotd, tfi,trd tfie rami rtrfied uta;d aor,,ntrord tIff,rrtrotdt 0Hrrd,WIIY SO, dA $i 50,000 r ll@rk3+t tdJdrtSr3 rvtdrrdmmAi-tt4o7 o4drdttaetoad ; or td;prv1�.... rk,ffwddFa¢n rr4 mMaoeoanwfieFe 0ORtMa;t FS ^Y k4iAd, OF q- F&tA a;t4rdttt O, td,rrBS; Mid ffo4 KJO i'OF SHA .. Srtrr0 4HIS Mid pd,r4°d@tt rd rr °tr„. tpgrropi attt,„. (;oot+rv406 °trite s14-) ?14mtrrof myiolydtrr �m t,rrd,t,k,.;,-of $ � �0-,000 ro�p� ire tfi°tt tfio (;4'',.of Pok 9o4Amseoid :4ortt d;ornlrt NWfi HN utg)lard;rAAO Sldtrdr8r FEES, ora ORS OF t09,,1dittrords r.,sm:N''j� p@rr"'ou'mlt to tart,'(Ott;rvtrl.ArIlAM, mid ttod,�4Aderm” atd,t➢roHW.44rr1(;�4rWF44 :d"etr 140 ( art'^ 44 P014 ➢dr"r�r rd°nd,r4u� -"F H rr d4rr7171to �1r4rtr�0.�k Fd,V ➢ ,@r�t� to rvlvo4 d� d �tq)NGr�itwvo �4m4 �orvlk,d,S dtrdr8����-e"ntWro,tdtH mitndiAedt so�tmd s b0fotd, SOfid;rtrrdtn. mnk SOHFO(M4 The Cot - NkiH udso eimt moe to ord of rrdto FWOF trHkt to I'e, v'e oddk,tI r4-ltt,d yloo(4 aarid8 . rt ra;d,s wb(m fro r,at-4td, 9 fie Cot - wFN 4d kf - midi dfxmrxrd,rdt t�krtt 4d,rdalol"s aRt Hot .,rr.,perdded ol� a ebrtut�:s^FB fl-orli d4dmp t"r@ si, Vies w4At tfi J,dedd raF govoCr4rd` emit:: 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. ttR]CQ,k,Wh] I tbrd,k,Wk] 'i ;or>I"ll �1d,t rt r�4. t, �rr"4r�10 k,rvt t�kri �¢n4,d�-"v r'��4,�i1 edmPdFwdSV s "tro oot W1ppropt"@ate f4 4w w4A of ....1\4st ptt.t"4 er ,,..o rtxp t A for pio4 msa k3, kr4>t ra; rt rrtg°, f -om mi Btdd,qoatd, mm -Nr of 4�RBwttr�rtdl� .ra UFC(;S C" ntt(m rnctbod: for G;4)llVri�rBG;trlid -," td,d;tNrdrar�st d,Fdtt0.k,""^ttrdrrr�' .'h `,mltract r ilst be awarded to the r('sp4odr,n' d; mid� resp-rtdr4sutS e frr"n. wt ose pr4rpkrkrBtt-k most adtvmlltu4"d,"e oor to tbe 1t'kDri°.Ifdtm.. NOR Y•god,W. t 1r'op4rk,ok m A4'rv?at"ttAe 4d]E4v P-oS li R SHIIIII" e so@P4'eo_: .o i2 m 1444k Q,V7I"lld;,'.t .d;dWG:"w•m mild m J;Nprt,r4* rv14rtt ormod alit* Wt"a' RI(trr y,, 4SNI!'-prvlknkb.... Wo-olktdt rvt",t','QWG t FN 7C:Mif )ordSO tO Wr'@ttd','R FO,d IkdMA, fl-om 4 0 Cit"- of 12ok fl owrFsd,rrd :: oj' m x ft�k,r� rn4rtr'rirt��urr a r4ar;rr-4el- Orf° -k 4S0.kV"oed°°Oolyqx,tliWo4 l° r r dtd,(mlied rrdrtd d aorAed CorttrdtOs fort r uotd, tfi,trd tfie rami rtrfied uta;d aor,,ntrord tIff,rrtrotdt 0Hrrd,WIIY SO, dA $i 50,000 r ll@rk3+t tdJdrtSr3 rvtdrrdmmAi-tt4o7 o4drdttaetoad ; or td;prv1�.... rk,ffwddFa¢n rr4 mMaoeoanwfieFe 0ORtMa;t FS ^Y k4iAd, OF q- F&tA a;t4rdttt O, td,rrBS; Mid ffo4 KJO i'OF SHA .. Srtrr0 4HIS Mid pd,r4°d@tt rd rr °tr„. tpgrropi attt,„. (;oot+rv406 °trite s14-) ?14mtrrof myiolydtrr �m t,rrd,t,k,.;,-of $ � �0-,000 ro�p� ire tfi°tt tfio (;4'',.of Pok 9o4Amseoid :4ortt d;ornlrt NWfi HN utg)lard;rAAO Sldtrdr8r FEES, ora ORS OF t09,,1dittrords r.,sm:N''j� p@rr"'ou'mlt to tart,'(Ott;rvtrl.ArIlAM, mid ttod,�4Aderm” atd,t➢roHW.44rr1(;�4rWF44 :d"etr 140 ( art'^ 44 P014 ➢dr"r�r rd°nd,r4u� -"F H rr d4rr7171to �1r4rtr�0.�k Fd,V ➢ ,@r�t� to rvlvo4 d� d �tq)NGr�itwvo �4m4 �orvlk,d,S dtrdr8����-e"ntWro,tdtH mitndiAedt so�tmd s b0fotd, SOfid;rtrrdtn. mnk SOHFO(M4 The Cot - NkiH udso eimt moe to ord of rrdto FWOF trHkt to I'e, v'e oddk,tI r4-ltt,d yloo(4 aarid8 . rt ra;d,s wb(m fro r,at-4td, 9 fie Cot - wFN 4d kf - midi dfxmrxrd,rdt t�krtt 4d,rdalol"s aRt Hot .,rr.,perdded ol� a ebrtut�:s^FB fl-orli d4dmp t"r@ si, Vies w4At tfi J,dedd raF govoCr4rd` emit:: 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. Comprehensive Financial Management Policy Guidelines Page 23 of 22 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 Management Policy Guidelines Page 24 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. CitOWnJen� 250 Madison Street, "ro o9:k� "q. a°rc�rt'T'c ww r a�iroat, WA98ib t8 368 3tCb.27OCtl Q ewe w ¢„pl:yaroFy�k s T.............................................................................. 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) Under $500 No requirement I 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 $7,501 aVp„000$ ),000 Obtain three telephone Purchase order if>$10,000 Department head (if and/or written quotations within budget or use formal bidding Requisition form & signed invoice appropriations) May use MRSC Vendor W-9 Roster, State contract, or interlocal agreement Select lowest qualified vendor �'"V w„QQ"V 'x4)w)j Must either: Purchase order City Manager (if Vdl formally bid, use within budget -$ du1 )ooj State contract, or Requisition form & signed invoice appropriations) $'"'wuS,00(S �$✓ r,000 interlocal agreement W-9 �\ Select lowest qualified vendor �1 u4)„4+ ) Must either: Purchase order Council approval° $;✓0,000 formally bid, use "� du1M Nul +$✓ r, 1C1"Vdl or State contract, or Requisition form & signed invoice Contract and/or more interlocal agreement invoice signed by City W-9 Manager Select lowest qualified vendor or less Required to have three i 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 AJ„UUU$10,QX) Obtain estimates from at Small public works contract City Manager for less $1xJ1!,uxJ$ ✓ r,000 least three contractors on than u'uQ74MQ, Limited Small Public I MRSC Small Works Roster Insurance ,��II k�� � i�i�il�:.til ,M���h 1 "m".4o � r�i';;,,,,,,,,,,,,,,,,,,, Works process OF W-9 1191'"Alliplo Award to lowest qualified ri,kdes$ contractor Prevailing wage Alternatively, may use 5% retainage or retainage bond, Contracts over these formal bidding or day unless waived in advertisement by limits require Council labor (City staff) City Manager approval Performance and payment bonds, Contract signed by unless waived in advertisement by City Manager 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 --[Formatted: Font: Bold, Font color: Accent 2, , Superscript I 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] � i I 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) --[Formatted: Font: Bold, Font color: Accent 2, , Superscript I $5,000-$9,999 No requirement, but Professional services agreement Delllu,up inrivuvd hv,Ad do. recommend at least three rda!?';pva Q. estimates from firms on Insurance u"wd'� IIAdV d'OF 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-$19,999 Request proposals or Professional services agreement Couuncid'Alluprov'Alf''u estimates from at least three firms on the MRSC Insurance d:uuwuuw,A4IA. TMwmArw;d..11:uy Consultant Roster City Manager, W-9 Request price quotes, schedule, and Purchase order (encumbrance) qualifications Prevailing wages may be required Check requirements if for certain services (e.g., using federal funding landscaping) Contract with lowest qualified vendor u u u�l,�l�l�l ro�v=1M�-1!�-1�-1 rad II aruuvp,„ull, �uullv+aru ri,arull Ildll II dru II uar�sr>>uaruv�ull a u°�+ua,ar> �u, a a uvuaruvh; LitII'�dl uuvuu a u...,. y... d du1M ?ul + ✓ r,ulClu]! kill Ll uuu ara ns. iram,oinruuirivn dvudI 1,aull"A1111CO G"IlvaAa;,,ll;� irar duuuu`arlriivaruvd, !it W 9. uu,uuvd;,.,darullaru gull duuuvulluuv,YMd uuuirclly ne aru rdvi (aruva,uuuli,"IiIIDu" AuvQ.A,u.. Will fl"rAQ,d. 'VU"'llfl III IQ1`ub"Q"O. ....................................................................... ggd All IIfiv d vArndoir. uli-A gflllnv'd,I. Ar, jj!Ay jj�. IrQ"gglirvdd [or a s u"d"A11n wll;.uua a > u.!ind sl :u.du.!Iin":um). dvd,v++d$ddMvddq;q, Formal, advertised RFP or Professional services agreement Council approval $100,000$/'),000 or more 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 u. The City Manager may sign contracts for purchase of goods greater than ro 1, i 1 1 , 1, 1 1 1 $ro"V i 1M $ ✓11!,2Q2 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 signpublic works contracts up ho .........k..... ... ,.......k..,.:,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. `a 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. "The City Manager may sign professional services contracts, including architectural, engineering, legal, or consulting services, up to $,,aXX612,CM) $1122,aJaJa6,,, 1,�2Q�j if the contract is time -sensitive and delay in bringing the matter before Council would cost the City time and money. , V 1uva,ar'u colliru Ad Ilv,u> Il Q0111dW,Ai ded IIrllie 011 y II'v d1lid?,0ii uvv'uy lain uinvoices rll of ar,;a,eed ;`,10,�XXJ ;`,100,00 0$ u IlQ221,,,,u Alva rarr;;ull a az r of flie 1,111-21m,f does roof exceed f a onill ua h uuvuar„guuvr (2ir wll ,s u a a Ilv uuv,u;;M,a oirdeirs „J;llo uvavh exceed d a,avuuuia,ull Auflioirized uuvvuh, foir G"uhy II,`�4,uuv0guaru puuua,llv'u zar g;uu a,avuvhu qua,. h Auuflhoirky, 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 a"� 1„ i11 u,, 1M 11tS Insurance, including professional $ "Vo4'co J ; ✓'`r J J 1" May use MRSC Consultant liability Roster $,ioJ di o$lopm W-9 $100,000 ✓ nolo]'.' or Firms submit statement of more requires qualifications Purchase Order if > $10,000 Council approval 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. u. The City Manager may sign contracts for purchase of goods greater than ro 1, i 1 1 , 1, 1 1 1 $ro"V i 1M $ ✓11!,2Q2 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 signpublic works contracts up ho .........k..... ... ,.......k..,.:,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. `a 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. "The City Manager may sign professional services contracts, including architectural, engineering, legal, or consulting services, up to $,,aXX612,CM) $1122,aJaJa6,,, 1,�2Q�j if the contract is time -sensitive and delay in bringing the matter before Council would cost the City time and money. , V 1uva,ar'u colliru Ad Ilv,u> Il Q0111dW,Ai ded IIrllie 011 y II'v d1lid?,0ii uvv'uy lain uinvoices rll of ar,;a,eed ;`,10,�XXJ ;`,100,00 0$ u IlQ221,,,,u Alva rarr;;ull a az r of flie 1,111-21m,f does roof exceed f a onill ua h uuvuar„guuvr (2ir wll ,s u a a Ilv uuv,u;;M,a oirdeirs „J;llo uvavh exceed d a,avuuuia,ull Auflioirized uuvvuh, foir G"uhy II,`�4,uuv0guaru puuua,llv'u zar g;uu a,avuvhu qua,. h Auuflhoirky, Table of Contents 1.0 Introduction 1.1 Purpose ofthe 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 RFOs 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 484-1 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 referencesto 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 FhriairiLeIyairics,g 2[ I Grants & capital improvement Finance—Accountant 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 1.3 Code of Ethics agA 42.231 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 subject to 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 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 subjectto disciplinary action according to PTR/IC 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 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::'P� 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 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. Services: 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 forthe project • All applicable sales and use taxes The cost estimateshould 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 III -(-',W 9-04 2- MCLI and PTMC 3.46.090: • Licensed or patented goods or services • Specialized items that are compatible with existing equipment or systems (i.e. water Sole source treatment plant 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 Purchases involving that match or fit existing equipment, inventory, special facilities or systems, 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 bankruptcy sales market cost Emergency purchases • See Section 1.12 or public works Purchases of insurance • Competitive bidding is not required for insurance or bonds or 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 appraisal of the property Real 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 QRCw exchange surplus property to or from another 39.33.010) government without the use of bids Interlocal agreements • See Section 2.4 (Piggybacking) Q Cw 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 necessaryto ratify the emergency declaration finding. 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 Business-related Alcohol, capital Section 6.0) Finance if you purchases of equipment, cash need to know goods and advances, consulting Ft rs wa"r"� g7 y prccqnmended your limits. services (i.e., services, personal yn„awcey(7WVpupcheyspng subscriptions, items, professional card v�� , pers,"" Werm1 h capd 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 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 on 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 JI�Q, /,,,,3,!!s,,23,,3,!!s,2.�?.., 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: 11 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) S. 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 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 bythe 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. 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 Citystaff: 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 r� 1. Review State contract Contact Finance Department with website for piggybacking process questions requirements 2. Contact vendor to verify Obtain details regarding all aspects they will honor State of purchase, including invoicing, contract pricing availability, delivery, etc. 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 order payment. U tiT I A 7Wn+ ,f d Provide Finance Department with ffi' r', ,hr BARS and State contract number for u, M" ,fIV r U"Y 11�1P purchase order ih,,u,rw,Hed r v rd iirrq 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 Citystaff: 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�Q;t�/,,35.,,23,,3,!! 2, a second-class city, such as Port Townsend, may construct a public work by contract or by day labor (City staff) without callingfor bids when the estimated cost of the work will 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 ifa publicworks 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 byJlQ..�...,,_S. 1s Bid Splitting: I�Q' ,,,35,,23.3!! „(;(,), 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 JI C''W........ ,90"4(„!!"5”. The City of Port Townsend has contracted with the Muuirnua u�aa all Research and 5��,irarices Center o/,ib,lh,iiirn,a�,lrp(, V�IIQ;), 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 leastthree contractors on the MRSCSmall Works Rosterforthe 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 JIQ 39 04."�.°a"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. 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 (R 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 Clerkto schedule the contract approval foran 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 grant or 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 35.23.3520 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 IAC./,,3!! ,3.,3 ,5 2„(;�,), 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 prosect? 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 u nder $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. Aooroval 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 KCfF 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 Attorney 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 RCfV 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 sta rt. Approval Limits: Forthe approval limits, referto the Servicessection of the Purchasing Matrix at the beginning of this manual. 22 2.12 Purchases of 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 generallytothe 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. Documentationof 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: 25 US/ NO 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 S. 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 afterthat 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 maybe 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 BCW 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 bidderwithin 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 beforethe bid may be deemed non-responsive (defined as anyvariance 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, ITO, or RFP) is an invitation to a contractorto 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 contractors 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 separatelyfrom 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 bya city ortown which is used primarilyfor pedestrian or vehicle traffic (RCifV 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 contracting for 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 requirementto submit these formsshould 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 contractamount. 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 Cityfund, 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 ff waiving retainage? 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 managersshould 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 Cityto 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. Mon itorine Activities Mav 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 Reviewing Invoices for Payment: 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 bythe 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 eitherfor convenience of the parties orfor cause. Contactthe City Attorney'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 ortransferthe item(s) to another government agency, subjectto 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 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 PTIVIC 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 cardsfor 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 bankto resolve issues, orders p -cards, reconciles purchases made duringthe 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 Of;;!11,lirn„alien,�,,,ft....aCb irf'ctcnpr(:npr,,,,,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 seethe 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 they terminate 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 • $2,500/$5,000 — 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 amendmentto a public works contract, signed by both parties and outliningthe 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 extremethreatto 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 sim ilar 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. Requestfor Qualifications (RFQ): a requestforonly a firm's general capabilities, including a list of principals, previous projects, number of employees, and licenses. An RFC, 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 RCVV 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: Avendor 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 111y (f port Townsen Submitted By: Connie Anderson Department: Finance Agenda Bill AB23-263 Meeting Date: November 20, 2023 Agenda Item: VIII.B ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Date Submitted: November 16, 2022 Contact Phone: 360-379-4403 SUBJECT: Ordinance 3324 Fixing and Adopting 2024 Property Tax Levies for the General and Library Levy with a Total Increase of One Percent (1.00%), and a Voter - Approved Tax Levy for the Mountain View Commons Capital Improvements of $150,000 for the Unlimited Tax General Obligation Bonds. CATEGORY: BUDGET IMPACT: ❑ Consent ❑ Resolution Expenditure Amount: $ ❑ Staff Report ❑x Ordinance ❑ Contract Approval ❑ Other: ❑x Public Hearing (Legislative, unless otherwise noted) ❑ 3 -Year Strategic Plan: N/A Cost Allocation Fund: 010-041 GF - Finance General SUMMARY STATEMENT: Included in Budget? Yes ❑ No ❑ The legislative body must hold a public hearing per RCW 84.52.020 on revenue sources for the coming year's budget which includes consideration of increasing the property tax revenues up to the maximum allowed 1 % increase. Washington State law provides for a 1 % levy increase each year or an election to bank that percentage for consideration in future years. The levy request must be received by the county legislative authority on or before November 30 of the year preceding the year in which the levy amounts are to be collected. A 1 % increase in the property tax levy was included in the revenue estimates for the 2024 City Manager Proposed Budget. The total budgeted property tax requested, including new construction, state -assessed property, allowable refunds, and the remaining banked capacity are: General Levy: $2,609,000 Library Levy: $1,229,000 Mountain View Commons Levy: $150,000 The 1.0% Levy increase equals $25,217 for the General Levy and $11,829 for the Library levy. 2023 Assessed values for 2024 taxes are estimated at $2.807 Billion, an estimated increase of 5.6% or $150 million this past year. New construction represents $47 million (32%) of the increased value. This increase in assessed value continues to help ease the compression on the statutory levy rate limits. The banked capacity from the annexation agreement with East Jefferson Fire District was fully levied in 2022 for the 2023 property taxes. The initial years of banked capacity were restricted by Council for use in Streets, Parks, Trails & utility bill related projects. Those levies have been dedicated, funds set aside, and projects planned. In 2023 for 2024 property taxes, this portion of the levy is unrestricted and will be used to fund one-time purchases to invest in people and equipment, the backbone that provides services to the City. The Mountain View Levy amount is $150,000, which approximates 50% of the debt service for the revenue bonds issued in 2015 for the Mountain View Commons projects. The numbers are confirmed by the Assessor's Office. The actual property tax paid in 2024 by the individual homeowner will be relative to their individual assessed value and will be dependent upon the actions of other taxing districts in Jefferson County. ATTACHMENTS: 1. Ordinance 3324 Adopting Property Tax Levies 2. 2024 City of Port Townsend Levy Certification 3. 2024 Public Hearing, Property Tax Presentation 4. Property Tax & AV Trend by Year thru 2024 5. DOR Homeowner's Guide to Property Tax CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: The public hearing of November 20, 2023, satisfies the requirements for a public hearing on the revenue sources which includes the property tax levy. Council is to consider public testimony and to adjust if necessary. Staff recommends adoption of Ordinance 3324 establishing the 2024 property tax levy. MOTION: Move to approve Ordinance 3324 Fixing and Adopting 2024 Property Tax Levies for the General and Library Levy with a Total Increase of One Percent (1.00%), and a Voter - Approved Tax Levy for the Mountain View Commons Capital Improvements of $150,000 for the Unlimited Tax General Obligation Bonds. ALTERNATIVES: ❑ Take No Action ❑ Refer to Committee ❑ Refer to Staff ❑ Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: Ordinance 3324 Page 1 of 2 ORDINANCE NO. 3324 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, FIXING AND ADOPTING 2024 PROPERTY TAX LEVIES FOR THE GENERAL AND LIBRARY LEVY WITH A TOTAL INCREASE OF ONE PERCENT (1.00%) AND A VOTER -APPROVED TAX LEVY FOR THE MOUNTAIN VIEW COMMONS CAPITAL IMPROVEMENTS OF $150,000 FOR THE UNLIMITED TAX GENERAL OBLIGATION BONDS WHEREAS, the City Council of the City of Port Townsend has met and considered its budget for calendar year 2024; and WHEREAS, the City's actual levy amount from the previous year was $2,521,671; and WHEREAS, the population of the City is more than 10,000; WHEREAS, the implicit price deflator released in September 2023 was greater than 1%; WHEREAS, as provided by and pursuant to RCW 84.55.120 and other applicable statutes, the City of Port Townsend has properly given notice of the public hearing held on November 20, 2023, to consider the City of Port Townsend's General Fund, Library Fund, Debt Service Fund and Firemen Pension Fund budget for the 2024 calendar year, pursuant to RCW 84.55.120; and WHEREAS, RCW 84.52.070 requires the City to certify to the County the amount of taxes to be levied upon the property within the City by November 30 of each year; and, WHEREAS, at the February 10, 2015 special election, the citizens of Port Townsend approved an additional property tax of $0.1005 per $1,000 of assessed property value for improvements to the Mountain View Commons facility and to repay any interim financing used for those improvements; and, WHEREAS, the City of Port Townsend, after hearing, and after duly considering all relevant evidence and testimony presented, has determined that the City of Port Townsend requires an increase in real property tax revenue from the previous year, in addition to the increase in the value of state -assessed property, in order to discharge the expected expenses and obligations of the City of Port Townsend and in its best interest; NOW THEREFORE, the City Council of the City of Port Townsend do ordain as follows: Section 1. That an increase in the regular property tax levy of 1.0%, in addition to any amount resulting from the addition of new construction and improvements to property and any increase in the value of state -assessed property, and any increase due to re -levying for any refunds made in the previous year is hereby authorized for the 2024 levy in amounts as follows: Ordinance 3324 Page 2 of 2 1.1. There is hereby levied upon all taxable property in the City of Port Townsend, for the year of 2024 per exhibits A and B. 1.2. In addition to the above, there is hereby levied upon all taxable property in the City of Port Townsend, for the year of 2024, the sum of $150,000 for the 2015 Unlimited Tax General Obligation Bonds approved by voters in February 2015 for capital improvements at the Mountain View Commons, which is a tax levy at approximately $0.05728 per $1,000 assessed value. Section 2. If any provision of this Ordinance or its application to any person or circumstance is held invalid, the remainder of the ordinance, or the application of the provision to other persons or circumstances, is not affected. Section 3. This Ordinance shall take effect upon its passage, approval, and publication in the form and manner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular meeting thereof, held this 20'h day of November 2023. Attest: Alyssa Rodrigues City Clerk David J. Faber Mayor Approved as to form: Heidi Greenwood City Attorney Department of t% evenue Ordinance /Resolution No. Ord 23 -XX Washington State Exhibit A RCW 84.55.120 WHEREAS, the City Council of City of Port Townsend has met and considered (Governing body of the taxing district) (Name of the taxing district) its budget for the calendar year 2024 ; and, WHEREAS, the districts actual levy amount from the previous year was $ 2,521,671 ; and, (Previous Year's Levy Amount) WHEREAS, the population of this district is ® more than or ❑ less than 10,000; and now, therefore, (Check One) BE IT RESOLVED by the governing body of the taxing district that an increase in the regular property tax levy is hereby authorized for the levy to be collected in the 2024 tax year. (Year of Collection) The dollar amount of the increase over the actual levy amount from the previous year shall be $ 25,217 which is a percentage increase of 1 % from the previous year. This increase is exclusive of (Percentage increase) additional revenue resulting from new construction, improvements to property, newly constructed wind turbines, any increase in the value of state assessed property, any annexations that have occurred and refunds made. Adopted this 20 day of November , 2023 If additional signatures are necessary, please attach additional page. This form or its equivalent must be submitted to your county assessor prior to their calculation of the property tax levies. A certified budget/levy request, separate from this form is to be filed with the County Legislative Authority no later than November 30t''. As required by RCW 84.52.020, that filing certifies the total amount to be levied by the regular property tax levy. The Department of Revenue provides the "Levy Certification" form (REV 64 0100) for this purpose. The form can be found at: http://dor.wa.gov/docs/forms/PropTx/Forms/LevyCertf.doe. For tax assistance, visit http://dor.wa.gov/content/taxes/property/default.aspx or call (3 60) 570-5900. To inquire about the availability of this document in an alternate format for the visually impaired, please call (360) 705-6715. Teletype (TTY) users may call 1-800-451-7985. REV 64 olole (w) (8/14/06) Department of t% evenue Ordinance /Resolution No. Ord 23 -XX Washington State Exhibit B RCW 84.55.120 WHEREAS, the City Council of City of Port Townsend has met and considered (Governing body of the taxing district) (Name of the taxing district) its budget for the calendar year 2024 ; and, WHEREAS, the districts actual levy amount from the previous year was $ 1,182,944 ; and, (Previous Year's Levy Amount) WHEREAS, the population of this district is ® more than or ❑ less than 10,000; and now, therefore, (Check One) BE IT RESOLVED by the governing body of the taxing district that an increase in the regular property tax levy is hereby authorized for the levy to be collected in the 2024 tax year. (Year of Collection) The dollar amount of the increase over the actual levy amount from the previous year shall be $ 11,829 which is a percentage increase of 1.0% % from the previous year. This increase is exclusive of (Percentage increase) additional revenue resulting from new construction, improvements to property, newly constructed wind turbines, any increase in the value of state assessed property, any annexations that have occurred and refunds made. Adopted this 20 day of November , 2023 If additional signatures are necessary, please attach additional page. This form or its equivalent must be submitted to your county assessor prior to their calculation of the property tax levies. A certified budget/levy request, separate from this form is to be filed with the County Legislative Authority no later than November 30t''. As required by RCW 84.52.020, that filing certifies the total amount to be levied by the regular property tax levy. The Department of Revenue provides the "Levy Certification" form (REV 64 0100) for this purpose. The form can be found at: http://dor.wa.gov/docs/forms/PropTx/Forms/LevyCertf.doe. For tax assistance, visit http://dor.wa.gov/content/taxes/property/default.aspx or call (3 60) 570-5900. To inquire about the availability of this document in an alternate format for the visually impaired, please call (360) 705-6715. Teletype (TTY) users may call 1-800-451-7985. REV 64 olole (w) (8/14/06) iue Levy Certification City Manager for City of Port Townsend do hereby certify to (Title) (District Name) the Jefferson (Name of County) County legislative authority that the City Council (Commissioners, Council, Board, etc. of said district requests that the following levy amounts be collected in 2024 as provided in the district's budget, which was adopted following a public hearing on 11-20-2023 (Date of Public Hearing) (Section below revised by the Jefferson County Assessor) DISTRICT LEVY MAX AMT TO LEVY* Regular: General 2,599,090.83 9,909.17 2,609,000.00 Library 1,224,434.52 4565.48 1,229,000 Excess: Mountain View 150,000 150,000 *Includes 1 % calc., estimated new construction, and estimated added state assessed utilities Signature: Date: Il.� �"q�14�r y f To nsen 2023 Property Tax Levy Public Hearing City Coi.vIxdi,.,jsiIIIDesslilt Alli MAYA !! 6I VANTAMO L IIS WA, I;.:) Ir- I;.:) II^,..ty tax II IIS C II" e a Z Z a Ir -e III ............... . a Z e d r) tl-ie a n or a u n g value of II;.:) r-qI;.:) r-6 e, Illbut llr°IIIDeIIIr t1he airnowirv" IpIIIr Ip'Illr"taxes assessed ll in °IIIDIIIA ulrull ulr yeair millF' t a II a rii wn t of II;.:) r- II;.:) r, ty taxes a tax a n g d li taro c t (e.g., tl-ie City) c: IIII cis .fu,. ril all II;.:) r-qI;.:) u,...ty omner-s is called t Il -i II ear y a rii wn t II,,,,evy ainnouin'tin oinly fincirease IIA 1 % ainiinually, uirnlle s.s tIheIpunl[:)hk votes for a greater lirnorea se Ilii:: Ill.2inirtures tyllpicallyurs innore Illi un 1 % irr in u 111 Illy dune .t o li rn ff 11 a h o irn , w lin li c lin creates c lin a 1111 e irn g e s With ffuirn&ing oirng6ing .seirVice s vala IproIpeirty.taxes. DiM Funding gaps Year 1 Year 2. Year 3 Year Year IIIIIIIIII II:::) iro Ip e it ty Fax (1 % as ire ire U as II iro t 1h ) Ill Il::::::.x 1p ire d i L LA it (3% a ire ire LA A irowt1h ) Z E MAX R, lili,","rE N"04ble faf six add6ow purposes! pits'eivown CA oroeft smx'ip Emefqvq tflodkal rMur kfiardabW KaLming mMfr opd4am perks 0 Fool SOON Usti TWOts Upinfies. cilips., And roald 65111di'mr? k mm"nins gel fit pAMy W ImVrkij the $590c COU00t rkieive SI.,90, 1,01 qemwaC lumd cbmno read u"Iyvvd $2-25 11 aulhcrimd In UmOlocorpmall'e-as $1315 O T110 Mm"airwo, N muc*O'd to "jflr*# OWricts" whick hxmop file wat"or, park flnd recrodqiom, tomifIffl'y" "I'ImpOdI'madwin, cuotrol, airptol, -aitd mumorous -olhe 6s Vids, Nato; KJD5 ard portdjV60s d:re smiar dimy'kis that vemit 50'Nirt, to the firnft rw bcm roqu* 400s,loch, A:%,s RMO of MAS, t,u1R.'3iC Taxable rr Vak iation III IIIA ..... rs IIIA Coun ty Assessar's Jefferson County focuses this effort by inspecting 1/6 th of the County each year; the remaining 5/6th are updated via statistical v a and # v inspection as r, r, r, In 2023, Ir, Ir,a(Chimacum, PortHadlock, Ir, and eiportionso. •, District area were physically inspected. 111111 Levy rates fall as assessed values increase https://www.co.jefferson.wa. us/151/Assessor Taxable rr Vak iations cont. III IIIA ..... rs IIIA Coun ty Assessar's •�� O-11111111� "Values have continued to rise in 2023, following mediansales data. The University of Washington puts the for 2022 at .0. ., over , the 5th highest County e State. Ir, have not yet captured e full increase since values in Jefferson County rose around of thatincrease with a county wide median assessed value of $508,000. ,Affordability remains a challenge for Jefferson https://www.co.jefferson.wa. us/151/Assessor Property tax is a key revenue source for the City The City 17% of what City of Port Townsend Levy Rates 2019-2024 CITY Of' PORT TOWNSEND PROPERTY TAX LEVY ASSESSED VALUE & LEVY RATES - BY TAX YEAR. 2019 for 2020 taxes 2020 for 2021 2021 taxes for 2022 taxes 2022 for 2023 2023 for 2024 taxes taxes Assessed Valuation (900's) 1,869,815 2,011,668 2,218,242 2,656,426 2„80 ,305 Levy Rate - General 0.79604 0.75491 0.97533 0.94914 0.92708 Levy Rate - Library Lid Lift 0.59529 0.56418 0.5,2250 0,.44526 0.43,488 Levy Rate - Fire, Lid Lift - - - City of PT Total General Levy 1.39133 1.3190,9, 1.49883 1.39440 Levy Rate - EMS - - - Excess Levy Rate - Mountain View 0.08173 3.07596 0.06895 0.05728 Total City Tax Levy Rate 1.47306 1 1.396,05 1.56,778 1.46167 1.36196 BUDGET ALLOCATIONS 2,02:0, 2021 2022 2023 2:024 General 867,107 9,12,107 1,540,639 2,375,43,13 2,49,9,765 Contingency - - - Community Services 412,10,00 412,000, 412,0010 - - General Government Debt Service, 102,000 102,900 102,10,00 15,0,990 75,000 Firemen's Pension 34,235 34,235, 34,235 34,235 34,235 Housing Trust Fund 74,658 74,658 74,658 10"000 - Library Fund 1,124,000 1,147,000 1,161,260 1,193,000 1,220,394 EMS Levy - Fire/EMS General Levy - - Mountain View Levy 150,000 150,000 150,000 150,000 150,000 Total 2,764,000 2,832,0300 1 3,474,792 1 3,912,671 1 3,979,394 Note Budget Allocations are intentionally slightly higher than the, Property Tax Levy amounts in the Ordinance,. The County Assessor provides guidance on budgeting higher than the, levy to account for new construction/refunds and other valuation adjustments. 2022 for 2023 Property Tax Recommendation Recommend 1% to r/1allowable levy increase for Questions / Discussion CITY OF PORT TOWNSEND PROPERTY TAX LEVY ASSESSED VALUE & LEVY RATES - BY TAX YEAR 2019 for 2020 taxes 2020 for 2021 taxes 2021 for 2022 taxes 2022 for 2023 2023 for 2024 taxes taxes Assessed Valuation (000's) 1,869,815 2,011,668 2,218,242 2,656,426 2,806,305 Levy Rate - General 0.79604 0.75491 0.97533 0.94914 0.92708 Levy Rate - Library Lid Lift 0.59529 0.56418 0.52350 0.44526 0.43488 Levy Rate - Fire Lid Lift - - - City of PT Total General Levy 1.39133 1.31909 1.49883 1.39440 1.36196 Levy Rate - EMS - - - Excess Levy Rate - Mountain View 0.08173 0.07596 0.06895 0.05728 Total City Tax Levy Rate 1.47306 1.39505 1.56778 1.45167 1.36196 BUDGET ALLOCATIONS 2020 2021 2022 2023 2024 General 867,107 912,107 1,540,639 2,375,436 2,499,765 Contingency - - - - - Community Services 412,000 412,000 412,000 - - General Government Debt Service 102,000 102,000 102,000 150,000 75,000 Firemen's Pension 34,235 34,235 34,235 34,235 34,235 Housing Trust Fund 74,658 74,658 74,658 10,000 - Library Fund 1,124,000 1,147,000 1,161,260 1,193,000 1,220,394 EMS Levy - - Fire/EMS General Levy - - Mountain View Levy 150,000 150,000 150,000 150,000 150,000 Total 2,764,000 2,832,000 3,474,792 3,912,671 3,979,394 Note: Budget Allocations are intentionally slightly higher than the Property Tax Levy amounts in the Ordinance. The County Assessor provides guidance on budgeting higher than the levy to account for new construction/refunds and other valuation adjustments. WASHINGTON STATE DEPARTMENT OF REVENUE toMA N&AW Propcl7tyTaft In Washington State, all real and personal property is subject to tax unless specifically exempted by law. Property tax was the first tax levied in the state of Washington. Today, property tax accounts for about 30 percent of total state and local taxes. It continues to be the most important revenue source for public schools, fire protection, libraries, and parks and recreation. The information contained in this publication is current at the time of production. However, state tax laws, their interpretation, and their application can change because of legislative action, reviews, or court decisions. This publication will not reflect these changes. Propertyvalues State law requires that assessors appraise property at 100 percent of its true and fair market value in money, according to the highest and best use of the property. Fair market value, or true value, is the amount of money that a willing and unobligated buyer is willing to pay a willing and unobligated seller. Real property Real property includes land, improvements to land, structures, and certain equipment affixed to structures. Characteristics of real property that influence the value include but are not limited to zoning, location, view, geographic features, easements, covenants, and the condition of surrounding properties. The assessor values real property using one or more of the following appraisal methods: Market or sales comparison approach to value is determined, or estimated, based on multiple sales of similar properties. Most residential property is valued using this method. • Cost approach to value is determined based on the cost of replacing an existing structure with a similar one that serves the same purpose. This method is commonly used to value new construction. • Income approach to value is determined based on the income producing potential of the property. This method is used primarily to value business property. Personal property The primary characteristic of personal property is mobility. Personal property includes furnishings, machinery and equipment, fixtures, supplies, and tools. Most personal property owned by individuals is specifically exempt. However, if these items are used in a business, personal property tax applies. For detailed information about personal property tax, please refer to the Personal Property Tax publication. Changes to property values All counties revalue properties each year and are required to do physical inspections at least once every six years. If your appraised property value changes, you will receive a change of value notice that lists the old and new appraised value of land and improvements. By comparing the two values, you can determine if your appraised property value has increased or decreased. The assessed value of your property may be less than the appraised value if you are receiving any type of property tax exemption or reduction. Valuation notices are not tax bills. An increase in value does not necessarily mean that next year's property taxes will increase at a proportionate rate. This fact sheet provides general information about Washington's property tax. For more information or to get answers to specific questions, please contact your local county assessor's office. Property x rates and limitations Property tax rates are expressed in dollars per thousand dollars of assessed property value. Assessors set the levy rate based on the taxing district's budget request, the total assessed value of the taxing district, and any applicable levy limitations. Property tax levy limitations restrict or limit increases to property tax rates.Two such limitations include the One -Percent Constitutional Limit and the Levy Limit. The one -percent constitutional limit Washington State's Constitution limits the regular (non -voted) combined property tax rate that applies to an individual's property to one percent of market value ($10 per $1,000). Voter approved special levies, such as special levies for schools, are in addition to this amount. The levy limit The Levy Limit applies to a taxing district's levy amount, and not to increases in the assessed value of individual properties. The limit is based on the population of the district as well as the district's need to increase revenue. The law restricts taxing districts from levying, in any year, more than a one -percent increase in its regular, non -voted levy over the highest amount that could have been levied since 1985. A taxing district with a population below 10,000 must adopt a resolution/ordinance to be able to increase its levy up to the one - percent limit. Taxing districts with a population of 10,000 or more are limited to the lesser of one percent or the rate of inflation with the adoption of a resolution/ordinance. If the rate of inflation is less than one percent, the district could increase its levy WASHINGTON STATE DEPARTMENT OF REVENUE up to the one percent limit if it can show substantial need for additional funds and its governing board passes a second resolution/ordinance. Because the Levy Limit does not include new construction, annexations, and voter approved excess levies, a taxing district's actual revenue increase may be greater than one percent. Appeal of true and it market value If you do not agree with the assessed value of your property, you are encouraged to contact your local county assessor's office. You can find a full list here: dor.wa.gov/ COUntyContacts Disagreements of property values are often settled at this level. You may request copies of the comparable sales information the assessor used to value your property. If you are unable to reach an agreement, you may file an appeal with the county board of equalization (BOE) in the county where the property is located. Appeal forms are available at the assessor's office, BOE office or dor.wa.gov/c:oriterit/ getaformorpublication/ formbysubyec:t/forms __prop. aspx#Appeals The completed petition must be filed with the BOE by July 1 of the assessment year you are appealing or within 30 days of the date the change of value notice was mailed, whichever date is later. Some counties have extended the filing deadline up to 60 days. Please check with the Board of Equalization in the county where the property is located to determine your filing deadline. If you or the assessor disagrees with the BOE determination, their decision can be appealed to the State Board of Tax Appeals (BTA). If the appeal at the BTA is a "formal" appeal compared to an "informal" appeal, the decision made by the BTA can be appealed in Superior Court. Information needed to appeal The appeal form must include specific reasons why you believe the assessor's valuation is incorrect. Examples may include an appraisal of your property as of the assessment date in question, excessive deterioration of your property or sales of similar properties reflecting a lower value for your property. Statements that the assessor's valuation is too high or property taxes are excessive are not sufficient reasons. For a successful appeal, you must provide market evidence that clearly shows the assessor's valuation is incorrect. This evidence may include information on sales of comparable properties in your area or documentation about conditions of the property that the assessor may not have known. For example, the land is not suitable for a septic system or is not suitable for a building site. If you have any questions about appeal procedures, please contact your local BOE or the assessor's office. The telephone numbers are listed in the county government section of the telephone directory. IIID does inotiiii°efile, rue &nd fahir irrmiii°]k(..� IIID. WASHINGTON STATE DEPARTMENT OF REVENUE Property x rates vary Many factors determine property tax rates, the amount of property tax due on comparable properties will vary throughout a county. The three main factors that determine the tax rate include: • various combinations of taxing districts in different areas of the county • budget amounts for each taxing district, and • voter -approved special levies and bonds. Calculating your taxes If you know the assessed value of your property and the tax levy rate, you can calculate the amount of tax. For example, if the assessed value of your property is $150,000 and the levy rate is $9.41 per thousand dollars of value, your tax will be $1,411.50. How to pay your property taxes Property tax statements are mailed by the county treasurer in February of each year. To avoid interest and penalties, at least half of the amount due must be paid by April 30 (if the tax is less than $50 it must be paid in full by April 30) and the balance by October 31. You can pay your property tax in person or by mail. Some counties are now accepting electronic payments via the county treasurer website. Check with your county treasurer to see if this option is available to you. When paying by mail, be sure to write the tax parcel or account number on your check and include the tax statement payment stub. Many lending companies pay the property tax for the homeowner from a property tax reserve account. In this case, tax statements are sent directly to the lending company. If your lending company pays the tax directly and you would like to receive information, please contact your local county treasurer's office. Questions: If you have questions about paying your property taxes, please contact your local county treasurer's office. *Other 8.2% Pnrtc 1 5% Fire 5 Cities and Towns 12.7% Counties chools 56% * Other includes regional libraries, parks and recreation, emergency medical, and hospital districts. (Distribution of 2015 tax year) Reductions Destroyed Property: Any real or personal property that has been destroyed in whole or part, or is in an area that has been declared a disaster area by the governor or the county legislative authority and has been reduced in value by more than 20 percent may be eligible for a property assessment reduction and or abatement of property taxes. Destroyed property form applications are available at your assessor's office or on line at dor.wa.gov/docs/forms/ proptx/forms/taxpclaimreducassmtd estryrea Ipersprop_e.xls Current use program and designated forest land: Owners of agricultural, open space, timber land, or designated forest land may qualify for a reduced assessment under the current use program or as designated forest land. However, additional tax, interest, and penalties or compensating tax may apply when property is removed from classification. Applications must be received by Dec. 31 for a reduction in assessment the following year. Application forms are available through the assessor's office. Exemptions Property tax exemption for senior citizens and disabled persons: This program freezes the value of your residence (as of January 1 of the initial year of application), exempts all excess levies, and may exempt a portion of regular levies, thereby reducing the amount of property tax due. Senior citizens, veterans with a 100 percent service -connected disability, and disabled persons may qualify. Household income determines eligibility and level of exemption. The county assessor approves or denies applications for this program. WASHINGTON STATE DEPARTMENT OF REVENUE Three-year tax exemption on value of remodel: If you improve your single family residence such as adding a new room, deck, or patio, you may qualify for a three-year tax exemption on the value of the improvements. Normal maintenance does not qualify. To receive the exemption, you must apply through your local county assessor's office prior to beginning your remodeling project. Other exemption: Churches, government entities, and many nonprofit agencies are exempt from property tax if they use property for a tax-exempt purpose. The department of Revenue determines which properties are entitled to the exemption based on laws enacted by the Legislature. Deferrals Under these programs, the State of Washington pays all, or a portion, of your property taxes on your behalf. Unlike the tax exemptions, deferred taxes are a lien on the property. The lien becomes payable, together with interest, upon sale, transfer, or inheritance of the property, or when the home is no longer your primary residence. The county assessor approves or denies applications for the deferral programs. Property tax deferral program for senior citizens and disabled persons: If qualified, you can defer your property taxes and special assessments in an amount up to 80 percent of the equity in your home. Senior citizens and disabled persons may qualify. Household income and equity determine eligibility.The current interest rate is set in statute and is 5 percent. M Property tax deferral program for homeowners with limited income: If qualified, you can defer your second half property taxes, due in October, in an amount up to 40 percent of the equity in your home. There is no age or disability requirement but you must have owned your home for at least 5 years. Household income and equity determine eligibility. The interest rate varies annually, as provided in statute, and is based on an average of the federal short-term rate, plus 2 percent. Assistance Property tax assistance for widows or widowers of veterans: This program is a grant assistance program to help you pay property taxes. Senior citizens and disabled persons who are widows or widowers of a veteran may qualify. Age or disability, household income, and your spouse's veteran status at the time of his/her death determine eligibility for this program.The Department of Revenue administers this program and approves or denies claims for assistance. to remember January 1 Real and personal property is valued for taxes due next year March 1 Applications due for Senior/ Disabled Deferral and Widow/ Widower Assistance April 0 First half of property taxes due Personal Property listing forms due to assessor. May 1 One percent per month (12 percent per annum) assessed on delinquent taxes. June 1 Three percent penalty assessed on current year's delinquent taxes. July 1 Deadline for appeals to the County Board of Equalization on current year's assessment; or 30 days from date of notification, whichever is later. August 31 New construction placed on current assessment roll at the valuation assessed July 31. September 1 Limited Income Deferral applications due. October 31 Second half of property taxes due. December 1 Eight percent penalty assessed on current year's delinquent tax. December 31 Current Use Program and Designated Forest Land applications due. Property tax exemption applications for senior citizens and disabled persons due. WASHINGTON STATE DEPARTMENT OF REVENUE Need more information? The following publications are available from your local county assessor's office. You may also obtain a copy from the Department of Revenue online at dor.wa.gov or by calling 360-534-1400. Personal Property Tax. • Nonprofit Organizations. • Property Tax Deferrals for Senior Citizens and People with Disabilities. Property Tax Deferrals for Homeowners With Limited Income. Property Tax Exemptions for Senior Citizens and People with Disabilities. Assistance Program for Widows or Widowers of Veterans. • Open Space Taxation Act. • Appealing your Property Tax Valuation to the County Board of Equalization. Questions Your local county assessor's office can answer questions regarding: Assessed values. Appeals. • Personal property. • Current Use Program and Designated Forest Land. Property Tax Deferrals for Senior Citizens and People with Disabilities. Property Tax Deferrals for Homeowners With Limited Income. Property Tax Exemptions for Senior Citizens and People with Disabilities. Your local county treasurer's office can answer questions regarding: ® Tax statements. Paying property tax. R For general information contact: Department of Revenue • Telephone Information Center 360-705-6705 • dor.wa.gov For tax assistance or to request this document in an alternate format, visit dor.wa.gov or call 360-705- 6705. Teletype (TTY) users may use the Washington Relay Service by calling 711. [Department of Revenue Washington State dor.wa.gov PTFS0012 06/21 "Iyof port@, ,' Abd Townsen' Agenda Bill AB 23-264 Meeting Date: November 20, 2023 Agenda Item: X.A ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Submitted By: Connie Anderson & Cynthia Shaffer Date Submitted: November 15, 2023 Department: Finance & HR Contact Phone: 360-379-5045 SUBJECT: Compensation policy and salary grade range review CATEGORY: BUDGET IMPACT: ❑ Consent ❑ Resolution Expenditure Amount: $ ❑ Staff Report ❑ Ordinance Included in Budget? Yes ❑ No ❑ ❑ Contract Approval ❑ Other: Discussion Item ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3 -Year Strategic Plan: N/A Cost Allocation Fund: Choose an item, . SUMMARY STATEMENT: The City hired Public Sector Personnel Consultants to conduct a survey of 2023 salaries at seven cities within commuting distance of Port Townsend (Sequim, Oak Harbor, Poulsbo, Port Orchard, Gig Harbor, Bainbridge Island, Bremerton). The consultant's data showed that the majority of City of Port Townsend salaries for non -represented employees are currently below market. The current job market and lack of affordable housing in Port Townsend have made it especially challenging for the City to attract and retain employees. The proposed compensation policy and salary structure for non -represented City employees would bring City salaries more closely in line with the market both in terms of salary ranges and step progression. Non -represented staff currently receive an increase once every three years for 24 years. This step system is unique to Port Townsend and is not competitive with what other agencies provide. The following is recommended: • Salary ranges with nine total steps. • Potential for annual increase, based on adequate work performance. Staff have developed a compensation policy to be added to and modify Chapters 5 and 8 of the Personnel Policies Manual. This policy focuses on fairness, pay equity, and external competitiveness, in an effort to improve staff retention. During the compensation policy development, staff also assessed the total compensation provided to non -represented employees, recognizing the importance of work/life balance, professional development, and progression. In order for represented employees to accept promotional positions, the non -represented benefits need to either be internally equitable or provide an incentive to accept new responsibilities. Therefore, and based on the market comparable data, the following is recommended: Add one floating holiday for non -represented positions. Add a professional leave incentive for those non -represented employees who are not eligible for compensatory time or overtime. This will have no cash -out value and cannot be carried over from year to year. Adjust vacation accruals to be more in alignment and competitive with the market. ATTACHMENTS: 1. Compensation policy — draft document 2. Proposed 2024 Salary Grade Range Chart 3. Council Discussion — presentation by consultant CITY COUNCIL COMMITTEE RECOMMENDATION: Finance and Budget Committee recommends Compensation Policy and 2024 salary grade range chart as presented at the November 15, 2023 Committee meeting. RECOMMENDED ACTION: Approval and adoption of the 2024 salary grade range and compensation policy. ALTERNATIVES: ❑ Take No Action ❑ Refer to Committee ❑ Refer to Staff ❑ Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: DRAFT document (Final document to be incorporated in Chapter 5 and 8 of the Personnel Policies Manual - Insert current existing Personnel Policies 5.2, 5.4, 5.5, 5.6, 5.7, 5.8, and 5.9) Chapter 5 Compensation 5.1 Purpose (new language): The City is committed to maintaining a compensation program that strives to ensure fairness, pay equity, and external competitiveness to attract and retain talented and engaged employees. The purpose of this policy is to provide guidance regarding City compensation and benefit goals, subject to collective bargaining agreements and fiscal constraints. All compensation and benefit decisions will be made without regard to race, gender and/or gender identity, sexual orientation, age, or any other protected class identified by the federal or Washington State government. 5.2 Compensation Philosophy (new language): The City's compensation program should be designed to attract and retain dedicated, diverse, hardworking, and talented employees who effectively support the mission of the City. The total compensation program is made up of both pay and benefits. Therefore, the City's compensation philosophy shall be competitive in the relative market(s), considering all appropriate factors. Those factors include but are not limited to: compensation provided by comparable cities, pay equity, internal equity, total cost of compensation provided by comparable cities, reality of recruiting in certain market conditions, and fiscal resources available to the City. The guiding principles set forth in this policy are expressed as general goals, with a full understanding that wages and benefits are mandatory subjects of bargaining for represented employees. This policy applies to non -represented City employees. It may also serve as a guideline for the City Manager and City Council in labor negotiations. Compensation decision-making for non -represented employees is subject to City Council approval; compensation adjustments for represented employees are subject to collective bargaining and ratification by the union(s) and City Council. 5.3 Compensation Goals (new language): The Compensation Philosophy provides the framework to achieve the following Compensation Goals: A. To attract and retain dedicated, diverse, hardworking, and talented employees who are well-qualified to perform their duties in an ever -evolving municipal government environment; B. To pay employees fairly and to strive for both internal and external pay equity; C. To be consistent, transparent, and fair when compensating employees; D. To be externally competitive by providing compensation and benefits commensurate with the labor market; E. To be fiscally responsible; F. To be legally defensible. 5.4 Market Definition (new language): The comparable labor market will be defined as cities in Washington State based on geographic location, population size, revenue base, and attributes similar to Port Townsend. When establishing comparable cities, those located in Jefferson, Clallam, and Kitsap counties or those areas within commuting distance may be given priority. Other local government agencies and private employers may be taken into consideration when they are determined to be a relevant factor in the proximate labor market. The relevant labor market will be defined in a manner that reflects the primary industries or organizations where labor talent is found, recruited from, or lost to. 5.5 Market Competitiveness (new language): To maintain pay and benefits that are competitive with the compensation of employers offering similar employment and competing in the same labor market, the City sets compensation in relation to the comparable labor market. However, the City recognizes that there are situations where exceptions and flexibility may be necessary, including, but not limited to: • Recruiting the desired type of talent in certain jobs is a sustained problem and results in negative impacts on the City and the public; • Retention problems including succession and turnover; • City priorities; • Internal anomalies in alignment, disparities, or inconsistencies; • Significant changes in the economy or marketplace; • Limitations on available financial resources. 5.6 Salary Classifications and Grades (replaces existing policy 5.1): Each job title within the City of Port Townsend is structured into a salary classification system. Each position is designated a particular salary grade and pay range as shown on the City's salary and wage schedules. The salary and wage schedule for non -represented positions is approved annually by the City Council through the annual budget process. The wage schedules for represented positions are covered by bargaining agreements and are approved by the City Council for the contractual period of the respective agreement. All wages are included in the City's annual budget. The City Manager, within the total amount approved for salary and wages in the annual budget, may set employee compensation and provide for raises or decreases in employee compensation based on performance, merit, longevity, relevant professional certifications, additional responsibility, and any other factors considered relevant by the City Manager. 5.7 Pay Rates (replaces existing policy 5.3): Initial employment - Employees shall be paid within the limits of the pay range to which their positions are assigned. Usually, a new employee will begin employment at the minimum pay rate for the respective classification. However, the City Manager may authorize a new employee to be started at a higher rate than Step 1 when the employee's experience, education, training or proven capability warrant, or when conditions require a higher starting rate, within the limits of the established pay range and considering internal equity. Additionally, the City Manager may negotiate and authorize leave accrual rates and balances for a new employee above the entry-level rate. Salary Range Progression and Anniversary Date - After an employee has been certified as having successfully completed the applicable trial period, their anniversary date of employment will be retroactive to the date of hire into a regular full or part-time position. For employees who transitioned from a represented to a non -represented position, the anniversary date for the purpose of step increases shall be the date the employee started in a non -represented position. Employees will receive a step increase on their first anniversary date and every subsequent anniversary date until they reach the maximum of their pay range, as long as they are satisfactorily performing their job. This is defined by an annual performance review. If an employee's performance is unsatisfactory, no step increase will be given if they are working on a formal Performance Improvement Plan unless a different process is provided in the employee's bargaining agreement. A department director may request that the City Manager approve an additional step increase on an employee's anniversary date if the employee has demonstrated exceptional performance of the position's duties. A department director may request a step increase be approved by the City Manager at the end of a trial period within the first year of occupying a position or upon the assumption of substantially increased duties and/or responsibilities. Step increases are subject to the availability of budgeted funds. Non -Represented Employees Annual Salary Adjustments - The City Manager will recommend a salary schedule and any adjustments for non -represented employees to the City Council for approval as part of the budget process. In addition, the City will attempt to mitigate compression issues as they arise. The City Manager will make appropriate and timely recommendations to the City Council to maintain internal equity, prevent compression, and consider the immediate and anticipated long-term financial resources of the organization. Promotions - Any employee promoted to a position in a higher classification and salary range after competing for an existing vacancy will normally receive the next highest available pay step in the new range. The City Manager may authorize the advancement of additional steps if the next highest step increase results in a raise less than 5% above the employee's pay prior to the promotion. Reclassification - Any employee who transitions to a higher classification and salary range based on demonstrated skills, knowledge, and abilities will normally receive the next highest available pay step in the new range. The City Manager may authorize the advancement of additional steps if the next highest step increase results in a raise less than 2% above the employee's pay prior to the reclassification. These reclassifications are generally restricted to situations where any employee is already successfully performing the essential duties of the position and no vacancy exists. The department director may request the reclassification of an employee through Human Resources with the ultimate determination to be made by the City Manager, depending on budget and internal equity factors. Transition to Former Position - When an employee transitions to a former position following a temporary assignment, promotion, or transfer, the employee will usually return to the salary step held prior to the temporary assignment, promotion, or transfer. Position Reinstatement - When an employee who has been laid off returns to the same classification occupied immediately prior to lay-off, the employee will usually return to the same salary step held at the time of lay-off. Pay Rates - Interim Temporary Assignments - An employee approved for temporary assignment by the City Manager for an interim period lasting in excess of twenty (20) workdays to perform the position of a higher classification may have their salary raised to the next higher rate (of employee's current wage rate) within the new assignment classification. However, when an employee assumes only a portion of the duties of a higher position and/or shares them with another employee (such as when two managers serve as Acting Director), the City Manager may authorize 5% out -of -class pay. Any salary change as a result of a temporary assignment is subject to the approval of the City Manager. Temporary assignments will not usually exceed six (6) months in duration. Compensation for interim temporary assignments shall not result in a classification change. Payroll Change Notices - An employee scheduled to receive an increase in pay during any pay period will receive the increased pay on the effective date of the change, provided however, a personnel action form with appropriate signatures must be received and processed by Human Resources before a pay increase will take effect. 5.8 Market Analysis; Employee Benefits and Recognition Committee (new language): The Human Resources Department will conduct a market analysis of positions during the collective bargaining process, as needed for represented employees. The Human Resources Department will endeavor to conduct compensation surveys for non -represented positions every three years. The Human Resources Department will create and coordinate a benefits committee, comprised of non -represented employees throughout the City. The purpose of this ongoing benefits committee is to review and make recommendations to the City Manager for sustainable and competitive benefit programs. Based on the survey data, the City Manager will recommend salary ranges, market adjustments, and benefit adjustments for non -represented positions to the City Council. The City Manager will consider the following goals in developing recommendations: 1. Establish salary ranges using the midpoint averages of salary ranges for Port Townsend's comparable agencies. The salary ranges will be consistent with best practices and established at ranges that are 24% from minimum to maximum with 9 steps. Incremental increases between steps shall represent 1/8 of the total salary range. Each non -represented position will be placed within a pay grade based on market comparisons. 2. Assign pay grades and salary ranges to positions based on the market data. There may be some positions that are unique to Port Townsend and do not have enough market comparisons to provide relevant data. In this case, the City will collect data on positions that are common in the marketplace and use these for benchmarks and will use internal comparisons and similar positions to place these positions in a salary grade that most closely reflects the responsibilities of the position. 3. Apply annual cost of living increases uniformly to all pay grades based on Council direction during the budget process. 4. Address any issues of compression between non -represented supervisory positions and their direct reports. 5. Place individual employees at a step in the applicable salary grade that is closest to their current pay rate and represents an increase in pay if market analysis shows a need to change an position's salary grade. Placing employees within new ranges may result in being placed at a lower step number within the position's range, but not reflect a lower salary. Step increases each year are intended to transition an employee to be on par with the comparison markets within a few years upon being placed in a new pay grade. 6. For any employee whose current salary falls below the newly adopted pay range minimum, place them on the newly adopted pay range at the minimum step. 7. Freeze the salary of any employee whose actual salary exceeds the top of a new approved salary range (i.e., the employee will not receive step or cost -of -living increases) until such time as the salary range for that position catches up to the compensation of the employee. 8. Give employees a step increase on their anniversary date if they are satisfactorily performing their job and not on a formal Performance Improvement Plan until they reach the top step of the range. 5.9 Compensation Upon Termination (additional language to current policy, 5.9): Following the last day worked, employees may elect to use up to a maximum of three weeks of accrued vacation time as their final weeks of service with the remainder of vacation accrual being paid out as a cash payment. 4 Chapter 8 Leaves - Personnel Policies Manual 8.1 Annual Vacation Time (replaces current vacation leave accruals in policy, 8.1 Vacation leave). Annual vacation time will be accrued for each employee on the following basis for employees working forty (40) hours per week: Continuous years of service Monthly vacation hours accrued First 12 months 8 Starting the 2nd year 10 Starting the 6th year 12 Starting the 10th year 14 Starting the 15th year 16 Starting the 20th year 18 Starting the 25th year 20 Starting the 30th year 22 Floating Holidays (replaces current policy, 8.11 Floating Holiday): Non -represented employees shall be entitled to two floating holidays per anniversary year upon beginning employment with the City. Floating holidays are to be determined by mutual agreement between the employee and the supervisor. No employee shall be entitled to use a floating holiday until they have been employed by the City continuously for at least six months. An unused floating holiday may not be carried over into the following anniversary year. "Year" is based on the employee's anniversary date. Represented staff: refer to the collective bargaining agreement for floating holiday rules. Professional Leave (replaces current policy, 8.13 Additional Leave): To be more competitive in the marketplace and to acknowledge that there are some positions that require additional hours beyond the standard 40 per week, the City Manager may approve non -represented employees who are ineligible for compensatory time with up to 24 hours of Professional Leave per calendar year. Professional Leave will have no cash -out value and will not be carried over at the end of the calendar year. FLSA-exempt positions may be eligible for Professional Leave if there is evidence that the position requires frequent and regular extraordinary hours of work over the course of a year. Professional leave may also be recommended on a one-time basis for extraordinary work or time commitment due to a special project or circumstance but may not necessarily be ongoing for a specific position. Upon recommendation by the Department Director and the Director of People and Performance, the City Manager may approve the position to be included on the list of positions eligible for such leave. Proposed Grade Ranges 2023 Salary Survey Finance Budget Committee November 15, 2023 2024 Annual Grades Range Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 1 $33,918 $34,935 $35,953 $36,970 $37,988 $39,005 $40,023 $41,041 $42,058 2 $35,614 $36,682 $37,751 $38,819 $39,887 $40,956 $42,024 $43,093 $44,161 3 $37,394 $38,516 $39,638 $40,760 $41,882 $43,004 $44,125 $45,247 $46,369 4 $39,264 $40,442 $41,620 $42,798 $43,976 $45,154 $46,332 $47,510 $48,687 5 $41,227 $42,464 $43,701 $44,938 $46,175 $47,411 $48,648 $49,885 $51,122 6 $43,289 $44,587 $45,886 $47,185 $48,483 $49,782 $51,081 $52,379 $53,678 7 $45,453 $46,817 $48,180 $49,544 $50,907 $52,271 $53,635 $54,998 $56,362 8 $47,726 $49,158 $50,589 $52,021 $53,453 $54,885 $56,316 $57,748 $59,180 9 $50,112 $51,615 $53,119 $54,622 $56,126 $57,629 $59,132 $60,636 $62,139 10 $52,618 $54,196 $55,775 $57,353 $58,932 $60,510 $62,089 $63,667 $65,246 11 $55,249 $56,906 $58,563 $60,221 $61,878 $63,536 $65,193 $66,851 $68,508 12 $58,011 $59,751 $61,492 $63,232 $64,972 $66,713 $68,453 $70,193 $71,934 13 $60,912 $62,739 $64,566 $66,394 $68,221 $70,048 $71,876 $73,703 $75,530 14 $63,957 $65,876 $67,795 $69,713 $71,632 $73,551 $75,469 $77,388 $79,307 15 $67,155 $69,170 $71,184 $73,199 $75,214 $77,228 $79,243 $81,257 $83,272 16 $70,513 $72,628 $74,743 $76,859 $78,974 $81,090 $83,205 $85,320 $87,436 17 $74,038 $76,259 $78,481 $80,702 $82,923 $85,144 $87,365 $89,586 $91,808 18 $77,740 $80,072 $82,405 $84,737 $87,069 $89,401 $91,733 $94,066 $96,398 19 $81,627 $84,076 $86,525 $88,974 $91,423 $93,871 $96,320 $98,769 $101,218 20 $85,709 $88,280 $90,851 $93,422 $95,994 $98,565 $101,136 $103,707 $106,279 21 $89,994 $92,694 $95,394 $98,094 $100,793 $103,493 $106,193 $108,893 $111,593 22 $94,494 $97,329 $100,163 $102,998 $105,833 $108,668 $111,503 $114,337 $117,172 23 $99,218 $102,195 $105,172 $108,148 $111,125 $114,101 $117,078 $120,054 $123,031 24 $104,179 $107,305 $110,430 $113,556 $116,681 $119,806 $122,932 $126,057 $129,182 25 $109,388 $112,670 $115,952 $119,233 $122,515 $125,797 $129,078 $132,360 $135,642 26 $114,858 $118,303 $121,749 $125,195 $128,641 $132,086 $135,532 $138,978 $142,424 27 $120,601 $124,219 $127,837 $131,455 $135,073 $138,691 $142,309 $145,927 $149,545 28 $126,631 $130,430 $134,229 $138,027 $141,826 $145,625 $149,424 $153,223 $157,022 29 $132,962 $136,951 $140,940 $144,929 $148,918 $152,907 $156,895 $160,884 $164,873 30 $139,610 $143,799 $147,987 $152,175 $156,364 $160,552 $164,740 $168,928 $173,117 31 $146,591 $150,989 $155,386 $159,784 $164,182 $168,579 $172,977 $177,375 $181,773 32 $153,920 $158,538 $163,156 $167,773 $172,391 $177,008 $181,626 $186,244 $190,861 d FY 2023 COMPENSATION STUDY �n��vUn�drv� • COMPENSATION SURVEY PROJECT SCOPE • DESIGN AND PLACEMENT OF JOBS ON TO PAY RANGES • IMPLEMENTATION - OPTIONS FOR CREATING A PAY PHILOSOPHY • SURVEYS ASSIST IN DETERMINING CURRENT RELATIONSHIP TO MARKET SALARY SURVEY NOTES PSPC SOUGHT JOB DESCRIPTIONS, ORGANIZATION CHARTS, AND SALARY STRUCTURES FROM THE FOLLOWING ORGANIZATIONS: Bainbridge Island Bremerton Gig Harbor Oak Harbor Port Angeles Port Orchard Dr, d c, hr, Anacortes - Library Ellensburg - Library Everett - Library Kalama - Library Kelso - Library Ocean Shores - Library Timhorl,nr A Dori;^r»1 I ihrnr%i /Ti W"%Avn+or\ '\-XIDI DITI NAL SURVEY NOTES - ILLUSTRATION Port Townsend Job Class Survey Job Class Participant Organization Annual Port Townsend Midpoint External Midpoint Variance Min Max $ Project Engineer Civil Engineer II $89,991 $107,988 $98,989 1 $102,917 1 -$3,9 Engineer II Bainbridge Island $98,607 $123,642 $111,125 Civil Engineer II Bremerton $88,524 $104,400 $96,462 Project Engineer Gig Harbor $90,850 $113,646 $102,248 Project Engineer Oak Harbor $87,300 $116,088 $101,694 Port Angeles - Civil Engineer II Port Orchard $97,032 $112,528 $104,780 Engineers - Dev Review, Transportation Poulsbo $90,688 $105,144 $97,916 Sequim - / um \-X,'D'DITIONAL SURVEY NOTES - ILLUSTRATION Port Townsend Job Class Survey Job Class Participant Organization Annual Port Townsend Midpoint External Midpoint Variance Min Max $ % Associate Planner $36.49 $44.14 $40.32 1 $39.93 1 $0.38 1 0.96% Associate Planner Bainbridge Island $35.61 $44.67 $40.14 Planner II Bremerton $38.05 $44.99 $41.52 Associate Planner Gig Harbor $34.84 $43.58 $39.21 Associate Planner Oak Harbor $35.22 $46.83 $41.03 Associate Planner Port Angeles $32.72 $39.08 $35.90 Associate Planner Port Orchard $39.24 $45.51 $42.38 SALARY SURVEY HIGHLIGHTS - NON -REP • 25+ JOBS WERE USED FOR MARKET COMPARISON • USING +/- 5% TO DEFINE COMPETITIVE, PAY GRADES FOR 54% OF NON -REP JOBS SURVEYED ARE MORE THAN -5% BELOW MARKET AT MIDPOINT SALARY SURVEY HIGHLIGHTS - REPRESENTED • 15+ JOBS WERE USED FOR MARKET COMPARISON • USING +/- 5% TO DEFINE COMPETITIVE, PAY GRADES FOR 12% OF REPRESENTED JOBS SURVEYED ARE MORE THAN -5% BELOW MARKET AT MIDPOINT PAY PLAN UPDATING • UPDATED PAY GRADES HAVE BEEN PROPOSED FOR ALL JOBS USING THE AVAILABLE MARKET DATA AND WITH SENSITIVITY TO INTERNAL ALIGNMENT - INTERNAL EQUITY • UPDATED PERSONNEL POLICIES HAVE BEEN DRAFTED FOR REVIEW AND APPROVAL W�nmd� QUESTIONS? Pt IRI IC'-FC'TC)R PFRRC)NNFI C'C)NRl 11 TANTR 01, 111y (f port Townsen Submitted By: Steve King Department: Public Works SUBJECT: Review of 2024 Capital Budget CATEGORY: ❑ Consent ❑ Resolution ❑ Staff Report ❑ Ordinance ❑ Contract Approval ❑x Other: No Action Agenda Bill AB23-265 Meeting Date: November 20, 2023 Agenda Item: X.B ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Date Submitted: November 5, 2023 Contact Phone: 360-379-5090 BUDGET IMPACT: N/A Expenditure Amount: $ Included in Budget? Yes ❑ No ❑ ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3 -Year Strategic Plan: 4 - Ensure sustainable future for public services and facilities Cost Allocation Fund: Choose an item, . SUMMARY STATEMENT: As part of the budget development process, budgets must be developed for all infrastructure projects also known as capital projects. These projects are budgeted through the City's capital funds for general government (parks and facilities), streets, water/sewer, and stormwater. The fund numbers are 301, 305, 415, and 414 respectively. Capital projects make up a large portion of a City's annual budget and for 2024 totals $13.9 million. Note that there are considerable expenditures associated with many of these projects in 2023 and if following years. The total value of all projects on the books is $29 million. The total estimated 2024 expenditures of $13.9 million is broken down for the respective as follows based on the attached capital project budget sheets: General Government Capital (301): Pink House 95,307 Library Windows/Restrooms City Hall Phase 2 and 3 175,500 Cherry St 69,641 Parks 2022 BC 145,580 Kah Tai Restrooms 35,000 Affordable Housing 100,000 Totals 621,029 Streets Capital (305): Sims Way 282,642 2022 Banked Capacity 380,955 2023 Banked Capacity 434,000 Discovery Road 3,739,225 HSIP Discovery Road 238,000 Tyler Street 385,688 Totals 5,460,509 Water/Sewer Capital (415): Total $7.29 Million Project Name Operations (411) Water Sewer Cap. Surcharge (430) Water Sewer SDC (495) Water Sewer Grants/Loans Water Sewer OGSW Fund Water Total Water/Sewer Affordable Housing 80,000 504,000 $ 584,000 2022 Banked Capacity 40,000 55,000 $ 95,000 Disc. Road 100,649 $ 100,649 Water $ Water General 100,000 100,000 $ 200,000 Water Meter Repl. 200,000 $ 200,000 1 MG Standpipe - 110,000 $ 110,000 Eaglemount Prop. Purchas 570,000 750,000 $ 1,320,000 OGWS $ Big Quil Div. Structure 71,900 120,000 $ 191,900 Pipeline Condition 540,000 $ 540,000 Lords Lake 88,100 $ 88,100 Cathodic Protection 142,000 $ 142,000 Sewer $ Sewer General 100,000 100,000 $ 200,000 Outfall 500,000 $ 500,000 Sewer Master Plan 20,257 $ 20,257 WW Nutrient 9,309 115,000 $ 124,309 Water St. Sewer Repl. 2,374,000 $ 2,374,000 Influent Wetwell 300,000 $ 300,000 SCADA 150,000 $ 150,000 Lawrence Storm/sewer 50,000 $ 50,000 Totals 570,000 459,309 300,000 150,000 350,649 255,257 821,900 3,493,000 890,100 7,290,215 Stormwater Capital (414): Projects 2024 Budget Banked Capacity (2022) 55,000 Banked Capacity (2023) 125,985 Kearney Discovery Road 342,680 Lawrence Storm 10,000 General Storm 50,000 Logan Storm Repair 15,000 Totals 598,665 The majority of funding for General Government and Streets are grants such as the recent ARPA grants. Funding locally for these projects typically come from general fund reserves, or special revenue sources such as Transportation Benefit Districts and Real Estate Excise Tax. The majority of funding for Water, Sewer, and Stormwater come from utility rates. Often times the City will borrow to support capital projects; however, borrowing money need to ensure that there is an adequate revenue source to make the payments. This year, Finance and PW staff developed a different approach to capital budgeting by producing an end of year forecast for 2023. This allows the remainder of carry forward projects to be more accurately budgeted for in 2024 and prevents double counting expenditures. This is a key change for monitoring fund balances. Additionally, all the capital project sheets included in this agenda bill include a line for the 1 % for the Arts contributions. City code is very limiting on eligibility for this; however, staff is making it a practice to evaluate each project at the onset to see if there are Art funds projected. Art funds are typically transferred at the project close out stage when all the accounting can be reconciled. Changes to project budgeting is made at this time and throughout the year. Often grants are received, or project conditions change requiring a budget change during the year. The capital budget sheets attached reflect changes already approved by the City Council as well as new information and new projects resulting from grants or implementation of our functional plans. Finally, capital projects have been lagging considerably due to a lack of staff. This year, with the hiring of two project managers, engineering will be able to implement more capital projects than in the recent past. This is a big step forward given our infrastructure is in great need of work. No action is requested as this information accompanies the 1St reading of the 2024 budget. ATTACHMENTS: Capital Project Sheets CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: No action. Capital projects are budgeted through adoption of the 2024 budget. ALTERNATIVES: ❑ Take No Action ❑x Refer to Committee ❑x Refer to Staff ❑ Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: Pink House & Pope Marine Project Description The Charles Pink House and Pope Marine buildings are suffering severe exterior deterioration in the siding and trim. The City has evaluated the repair costs and will be making repairs to the degree that funding is available.i Revenue Project Budget Revised Budget Prior Year 2023 Actual 9/23 Revenues 2023 Budget 2023 Estimate Year End 2024 Budget Future Years Total Revenues Actuals To Date ARPA(Initial Allocation) $ 100,000 $ 100,000 2,193 100,000 2,500 95,307 100,000 2,193 Pink House Pope Marine Future Grant 71 $ 205,000 1,448 2,228 $ 40,000 1,874.24 Pope Marine Subtotal $ 35,000 $ Construction 40,000 - - 40,000 1,448 2,228 - Pink House $ 250,000 $ 65,000 Total Revenue 86,500 $ 305,000 $ 140,000 2,193 3,675 100,000 2,500 95,307 40,000 140,000 5,868 Expense Prior Year2023 Actual Ex enditures 2023 Budget 2023 Estimate Year End 2024 Budget Future Years Total Expenditures Actuals to Date Design Enaineerina / Permitting Terrapin Contract $12,000 Pink House Pope Marine $ 35,000 $I2,011 2,418 182 2,940 35,000 2,500 7,489 (182) 12,000 4,428.70 3,122 Pink House 1,874 1,874.24 Pope Marine Subtotal $ 35,000 $ Construction - - - Pink House $ 250,000 $ 65,000 86,500 86,500 Pope Marine $ 40,000 40,000 Subtotal $ 250,000 $ Project Management $ 20,000 $ - 1,500 - 1,500 - Subtotal Project Contingency Eligilbe for l%for the Arts No - - - Repair work and grant funding Total Expense $ 305,000 $ 140,000 1 $ 2,193 $ 7,232 $ 100,000 $ 2,500 $ 95,307 $ 40,000 $ 140,000 $ 9,425 Library Windows & Restrooms Project Description The 1989 additon to the Port Townsend Library has windows with frames that are beginning to rot due to moisture intrusion and window failure. This project replaces the windows for this portion of the library. The source of funds for this project are bond revenues as well as American Rescure Plan Act funds. This project also rehabitates the outdated bathrooms. Revenue Project Budget ect Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Future Budget Total Revenues Budget3 Revenues Year End Budget Bond Fund - Windows $ 62,20909 - 62,209 - Real Estate Excise Tax - Windows $ 7,791 00 - 7,791 - Federal Grant (ARPA) - Windows $ 100,00000 100,000 100,000 100,000 DOC (added in 2024) - Windows $ 167,81010 ]37601003109 143,000 109,500 109,500 Bond Fund - Restrooms $ 33,00000 33,000 9,500 9,500 Total Revenue $ 370,81019 346,000 219,000 219,000 Expense Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Future Budget Total Expenditures Expenditures Year End Budget Design Engineering / Permitting Subtotal $ - $ - - Construction - Windows $ 167,500 $ 79,097 - 67,500 90,000 - 90,000 Restrooms $ 30,500 $ 95,209 30,500 10Q000 - 100,000 Subtotal $ 198,000 $ 174,306 Project Management - Windows $ 2,500 $ 5,000 197 2,500 2,000 2,197 Restrooms $ 2,500 $ 5,000 2,500 2,000 2,000 Subtotal $ 5,000 $ 10,000 Project Contingency $ 25,000 $ 25,000 25,000 Eligilbe for 1 % for the Arts No No - Repair work and partial grant - TotalExpense $ 203,000 $ 184,306 197 103,000 219,000 219,197 Excess{De, cfl¢ 167,810 185,713 (196.50) 243,000.00 (196.50) City Hall Upgrades Phase 2 & Council Chambers Audio Visual Updates Project Description Ci Hall underwent a remodel in 2007 and left man arts of the project incomplete. In 2021 a front counter was City Y P P 1 P added to the lobby. After space planning in 2022, a continued phased approach to upgrading the City Hall office spaces on floors 2R and 3 were recommended. These floors were never completed in the earlier remodels of City Hall. The work proposed includes sound control, HVAC, carpet replacement, furniture, and conference room development. In addition to the office space modifications, ARPA funding provided for Council upgrade of badly outdated electronics associated with audio and visual equipment. r Revenue Project Budget Revised Project Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Future Budget Total Revenues Budget9/23 Revenues Year End Budget ARPA Phase 2 and Carpets $ 400,000 $ 400,000 43,204 400,000 400,000 400,000 ARPA Phase 1 $ 130,000 $ 130,000 68,524 61,476 130,000 Council Chambers (ARPA) $ 120,500 12,517 35,000 85,500 120,500 Jefferson Co. Historical Society $ 10,131 $ 10,131 10,131 - 10,131 ARPA - Second Floor Conference Room $ 90,000 90,000 90,000 Total Revenue $ 540,131 $ 750,631 78,654 55,721 400,000 496,476 175,500 750,631 Expense Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Future Budget Total Expenditures Expenditures Year End Budget Design Engineering / Permitting Subtotal $ - $ - - Construction - City Hall $ 350,000 $ 400,000 58,393 143,112 350,000 341,607 400,000 $ 81,301 $ 120,000 120,000 120,000 Second Floor Conf. Room $ 90,000 90,000 Council Chambers $ 120,500 13,613 100,000 35,000 83,500 118,500 Jefferson Co. Hist. Society $ 10,131 10,131 - 10,131 Subtotal $ 431,301 $ 740,631 Project Management - General Government $ 50,000 $ 10,000 1,179 7,464 50,000 6,821 2,000 10,000 Subtotal $ 50,000 $ 10,000 - Project Contingency - Eligilbe for 1 % for the Arts No - Grant Total Expense $ 481,301 $ 750,631 69,703 164,189 500,000 503,428 175,500 658,631 Cherry St. Property Disposition Project Description The City is in the process of reconciling the Cherry Street housing project that did not pencil out. This project involves generally preparing the property for disposition. Revenue Project Budget Prior Year Revenues 2023 Actual 2023 Budget 2023 Estimate Year End 2024 Budget Future Budget Total Revenues Bond Funds $ 150,000 150,000 76,000 74,000 150,000 Total Revenue $ 150,000 76,000 74,000 150,000 Expense Prior Year Expenditures 2023 Actual 2023 Budget 2023 Estimate Year End 2024 Budget Future Budget Total Expenditures Design Engineering / Permitting Subtotal $ Construction $ 145,000 4,359 9,053 150,000 75,000 65,641 145,000 Subtotal Project Management $ $ 145,000 5,000 592 1,000 4,000 - - 5,000 Subtotal $ 5,000 Project Contingency Eligilbe for 1 % for the Arts Bond fund - not eligible Total Expense $ 150,000 4,359 9,645 150,000 76,000 1 69,641 150,000 Parks 22 Banked Capacity Project Description The City Council allocated funding to several parks project as part of the 2022 Banked Capacity (property tax). The projects include reconstruction of the Kitchen Shelter at Chetzemoka Park, installation of Kiosks at the City Parks and install trail signs identifying the right of way, and installation of a new swingset at Bishop Park. The swingset has been installed leaving the kitchen shelter remodel and signing to be completed. Revenue Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Future Budget Total Revenues Actuals To Date Revenues Year End Bud et Banked Capacity - -Kitchen Shelter 50,000 50,000 50,000 100,000 50,000 Kiosks Signs 50,000 11,000 - 61,000 50,000 Bishop Playground AProject 30,000 - 30,000 - Donations - Kitchen Shelter 50,000 50,000 Total Revenue 150,000 1 50,000 1 91,000 1 241,000 1 100,000 Expense Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Future Budget Total Actuals to Date Expenditures Year End Budget Expenditures Design Engineering / Permitting Subtotal $ - - - Construction Kitchen Shelter $ 150,000 6,194 127,387 15,000 135,000 150,000 6,194 Kiosks Signs $ 59,000 27,515 15,163 20,000 11,485 59,000 42,678 Bishop Playground $ 28,500 30,519 30,519 (2,019) 28,500 30,519 Subtotal $ 237,500 - - Project Management - Kitchen Shelter $ 2,000 386 1,000 614 2,000 386 Kiosks Signs $ 1,000 500 500 1,000 - Bishop Playground $ 500 319 500 - 500 319 Subtotal $ 3,500 - - Project Contingency - - Eligilbe for 1 % for the Arts I No - Bank Capacity Agreement does not allow for art contribution - - TotalExpense $ 241,000 27,901 52,196 127,387 67,519 145,580 241,000 80,096 Kah Tai Restrooms and Care Take Facility Project Description The existing Kah Tai restrooms were originally constructed with grant funding from RCO. The restrooms have fallen into disrepair and have suffered severe vandalism over the years. As a result, the restrooms have been closed for a number of years. The City desires to re -open the restrooms and establish an RV caretaker site to minimize the effects of vandalism. Staff is applying for RCO grants to rehabilitate the restrooms. Revenue Project Budget Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Future Budget Total Revenues Revenues Year End Budget 2023 Banked Capacity $ 40,000 40,000 40,000 40,000 40,000 REET - - RCO Grant (Unsecured) - No match required $ 90,000 90,000 90,000 ARPA $ 35,000 35,000 35,000 - 35,000 Total Revenue $ 165,000 40,000 75,000 40,000 35,000 90,000-F 165,000 Expense Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Future Budget Total Expenditures Year End Budget Ex enditures Design Engineering / Permitting - $ 10,000 10,000 10,000 10,000 Subtotal $ 10,000 - Construction - Phase 1 $ 60,000 60,000 40,000 20,000 60,000 Phase 2 depending on grant 90, $ 000 90,000 90,000 Subtotal $ 150,000 Project Management - $ 5,000 5,000 5,000 5,000 Subtotal $ 5,000 - Project Contingency - Eligilbe for 1 % for the Arts No Repair work and grants - TotalExpense $ 165,000 75,000 40,000 35,000 90,000 165,000 Affordable Housing Project Description The City received two grants for affordable housing in 2021. An additional Federal Grant is anticipated in late 2021 as well. The funding is directed to create land available for affordable housing through acquisition of property and the construction of sewer infrastructure to support full develompent of the land. An interfund loan will provide cashflow until reimbursement from the State is received for the acquisition of property. -- - Revenue Project Budget Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Future Budget Total Revenues Actuals To Date Revenues Year End Budget Federal Grant for Sewer (EPA) $ 2,500,000 800,000 - 252,000 2,248,000 2,500,000 - State Utility Grant (CHIP) for Sewer $ 1,700,000 26,500 - 252,000 1,448,000 1,700,000 - State Affordable Housing Grant $ 1,372,000 1,355,476 16,533 16,533 (9) 1,372,000 1,372,009 City Funds Affordable Housing funds $ 43,500 10,162 43,500 43,500 (10,162) 43,500 10,162 Jefferson County ARPA $ 500,000 500,000 500,000 - 500,000 500,000 City General Funds (Abatement and Mowing) $ 100,000 46,167 53,833 100,000 - Jefferson County Cleanup Grant $ 7,000 7,000 - - 7,000 - Sewer SDC (Fund 495) $ 150,000 20,000 80,000 50,000 150,000 Total Revenue $ 6,372,500 1,865,638 16,533 1,370,000 133,200 584,000 3,789,662 6,372,500 1,882,171 Expense Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Future Budget Total Actuals to Date Expenditures Year End Budget Expenditures Land Purchase / Permitting / Design Land Purchase $ 1,372,000 1,355,476 16,524 1,372,000 1,355,476 Planning and Permitting $ 500,000 265,512 500,000 400,000 100,000 - 500,000 265,512 Cultural resources General Government $ 43,500 45,787 (2,287) 43,500 45,787 Mill Road Lift Station $ 504,000 504,000 - 504,000 - Subtotal $ 2,419,500 - - Construction - - - Cleanup $ 25,000 25,308 25,308 - (308) 25,000 25,308 Mowing $ 75,000 49,859 19,859 - 55,141 75,000 49,859 Sewer Lift Station and Forcemain Sewer $ 3,150,000 200,000 - 3,150,000 3,150,000 - Construction engineering $ 546,000 546,000 546,000 - Subtotal $ 3,796,000 - - Project ManagementlDesign Engineering - - - General Government $ 7,000 2,271 574 1,000 3,729 7,000 2,844 Sewer $ 150,000 134 40,000 $ 20,000 $ 80,000 49,866 150,000 134 Subtotal $ 157,000 - - Project Contingency - - - Eligible for 1 % for the Arts No $ - - - Not elegible - Grants and Utilities Total Expense $ 6,372,500 1,403,668 341,252 740,000 466,167 684,000 3,818,665 6,372,500 1 1,744,920 Sims Way and Boatyard Expansion Project Project Description The Sims Way and Boatyard Expansion project was approved by the City Council, Port of Port Townsend, and Jefferson County PUD on 9/12/22. The construction of the south side of the project will be led by the Port with the City doing work overtime on the north side. The project involves removal of the existing Poplar trees, expanding the boatyard, and planting new trees on the south side. The project involves selective removal over time on the Kah Tai side by the ire„ qc"&4 City Mt,y,�mim" Revenue Project Budget Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Future Budget Total Revenues Actuals To Date Revenues Year End Budget ARPA $ 100,000 - - 100,000 100,000 In Kind Match - North Side - $50000 - - - PIF $ 185,000 135,000 - 185,000 - 185,000 - Total Revenue $ 285,000 135,000 285,000 285,000 Expense Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Future Budget Total Actuals to Date Expenditures Year End Budget Expenditures Design Engineering / Permitting Design Consultant - Port $ 100,000 100,000 100,000 - Subtotal $ 100,000 - - Construction - Construction Contract $ 170,000 190,000 - 170,000 170,000 In Kind Match - North Side $100,000 - - Subtotal $ 170,000 Project Management - Engineering Administration - - $ 15,000 2,358 13,000 - 12,642 15,000 2,358 Subtotal $ 15,000 - - Project Contingency - - Eligilbe for 1 % for the Arts No $ - - Grant Funds - - TotalExpense $ 285,000 2,358 203,000 282,642 285,000 2,358 txcess{uem,:avt (2,358.00) (68,000.00) 2,358 2022 Banked Capacity Project Description The City Council authorized expensiture of 2022 banked capacity (property tax) revenue for parks and streets projects. The Street projects in this budget include construction of sidewalks on 9th Street between Hancock and McPherson, ADA improvements at Mountain View on Blaine Street, ADA improvements at the intersection of Lawrence and Tyler Street, and paving of Milo Street, a portion of the Valley Trail. Revenue Projec]414,000 Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Revenues Year End Budget Future Budget Total Revenues Actuals To Date Banked Capacity $ 110,000 285,381 304,000 414,000 110,00Water SDC (495) $ 75,000 35,000 40,000 75,000 Sewer SDC (495) $ 60,000 5,000 55,000 60,000 Stormwater(412) $ 40,000 1,000 39,000 40,000Total Revenue $ 110,000 460,381 1 345,000 1 134,6601 589,000 1 110,000 Expense Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Expenditures Year End Budget Future Budget Total Actuals to Date Expenditures Design Engineering / Permitting Design Consultant IStreet $ 50,000 50,000 50,000 Design Consultant Water $ Design Consultant Sewer $ Design Consultant Storm $ Subtotal $ 50,000 - 30,000 - $ - 275,264 30,000 49,000 31,000 Construction 9th St, Lawrence, and Blaine Street $ 293,309 Water $ 60,000 Sewer $ 49,000 Storm $ 31,000 $ 433,309 Project Management Street $ 32,000 18,045 131 293,381 29,565 60,000 49,000 31,000 - 293,309 60,000 49,000 31,000 - 18,176 29,565 - - - 15,000 17,000 32,000 Water $ 15,000 6,778 2,075 57,0005,000 3,222 15,000 8,853 Sewer $ 11,000 15,000 5,000 6,000 11,000 Storm 1 9,000 11,000 $ 1,000 1 8,000 9,000 Subtotal I $ 67,000 $ 38,691 Project Contingency $ 38,691 38,691 Eligilbe for 1 % for the Arts INo Banked Capacity Agreement Does not allow for art contribution I I- - TotalExpense $ 589,000 24,823 31,770 516,381 56,000 1 508,177 589,000 56,593 Excess{:'3wbcfl} 85,177.07 (31,770.44) (56,000.00) 289,000 (374,177) 53,406.63 Kearney St Project Description Washington State Department Of Transportation is replacing signals at Mill Road/SR20 and Kearney/SR20 with compact roundabouts at each location. The City secured Federal Surface Transportation Block Grant funds through a competive process adminstered by Jefferson County. The funds will be used to enhance the WSDOT project with improved pedestrian and bike facilities as well as work on the roundabout approaches. The project was approved by the City Council on August 16, 2021. Revenue Project Budget Prior Year Revenues 2023 Actual to date 2023 Budget 2023 EOY Estimate 2024 Bud et Future Budget Total Revenues Federal Grant Funds (STBG) $ 476,900 402,510 476,900 879,410 Real Estate Excise Tax $ 75,000 323 62,890 75,000 137,890 Permit Refund 440 Stormwater (412) $ 20,000 20,000 20,000 Total Revenue $ 571,900 763 465,400 571,900 1,037,300 Expense Prior Year Expenditures 2023 Actual to date 2023 Budget 2023 Ey Estimate 2024 Budget Future Budget Total Expenditures Design Engineering / Permitting WSDOT Agreement Subtotal $ $ 71,000 71,000 459 440 70,541 - 71,000 Construction WSDOT Agreement $ 465,400 463,000 485,400 948,400 Subtotal Project Management $ $ 465,400 15,000 1,895 323 2,000 13,105 - 17,000 Subtotal $ 15,000 Project Contingency Eligilbefor 1 %for the Arts $ 750 745 Estimate on budget for REET and not grants Total Expense $ 551,400 2,354 763 465,000 569,046 745 11,036,400 2023 Banked Capacity Street Repair Projects Project Description The City proposes to invest up to 868,000 of banked capacity (property tax) into repair of streets. This project will include a number of stormwater management improvements prior to applying repair treatment to the street. irvl Jfj , Revenue Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Budget Total Revenues Revenues date Year End Banked Capacity $ 868,000 9,288 868,000 868,000 - 868,000 Stormwater $ 251,970 251,970 125,985 125,985 251,970 Total Revenue $ 1,119,970 9,288 1,119,970 1 993,985 1,119,970 Expense Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Budget Expenditures date Year End Total Expenditures Design Engineering / Permitting In-house engineering Street - - Storm Subtotal $ - $ - $ - - Construction - Street $ 737,800 3,569 737,800 368,900 368,900 737,800 Storm $ 188,977 188,977 94,489 94,489 188,977 Subtotal $ 926,777 - Project Management - Street $ 130,200 - 9,024 130,200 65,100 65,100 130,200 Storm $ 62,993 62,993 31,497 31,497 62,993 Subtotal $ 193,193 - Project Contingency = Eligilbe for 1 % for the Arts No - Banked Capacity does not allow for art contribution - TotalExpense $ 1,119,970 $ - $ 12,593 $ 1,119,970 $ 559,985 $ 559,985 $ 1,119,970 Excess{De, cfl¢ 3,305 (434,000) Discovery Road Project Description The Discovery Road Project includes constructing a bicycle way, sidewalks, and curb ramps between the roundabout at Rainier Street and McClellan Street near Salish Coast Elementary School. The project will completely rebuild the failing pavement as well. The City received several grants to fund this large project. Discovery Road is an important arterial street connecting SR20 to Fort Worden. The City and stakeholders evaluated options for this project in the spring of 2021. City Council approved the concept design on May 17, 2021. Construction is anticipated in summer 2022. Revenue Project Budget Revised Project Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Budget uture Budge Total Revenues Actuals To Date Bud et7/23 Revenues Year End Transportation Improvement Board - State Grant (UAP) $ 2,629,618 $ 2,493,288 28,211 309,673 2,551,133 400,000 2,065,077 2,493,288 337,883 Washington State Department Of Transportation $ 1,442,082 $ 1,442,082 - 38,420 1,442,082 75,000 1,367,082 1,442,082 38,420 Federal Grant Funds STP $ 621,515 $ 621,515 602,190 15,000 15,000 15,000 4,325 621,515 617,190 Local -Street Funds -Bond $ 270,000 $ 270,000 270,000 331,785 - 270,000 270,000 Streets Operations $ - $ 93,693 25,000 68,693 93,693 Water (495) $ 240,000 $ 234,263 47,822 180,000 85,792 100,649 234,263 47,822 Sewer (495) $ 115,000 $ 75,831 19,460 100,000 62,926 (6,555) 75,831 19,460 Storm $ 250,000 $ 342,680 250,000 342,680 342,680 Total Revenue $ 5,568,215 $ 5,573,352 967,683 363,093 4,870,000 663,718 3,941,951 5,573,352 1,330,776 Expense Project Budget Revised Project Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Budget uture Budge Total Actuals to Date Budget 7/23 Expenditures Year End Expenditures Design Engineering / Permitting Street $ 755,854 $ 608,387 652,379 6,811 (43,992) 608,387 659,189 Water $ 34,216 $ 30,792 30,792 30,792 Sewer $ 13,217 $ 7,926 7,926 7,926 Subtotal $ 803,287 $ 647,105 - - Construction - Street $ 3,322,829 $ 3,888,122 4,340,000 150,000 3,738,122 3,888,122 - Water $ 190,937 $ 190,537 180,000 50,000 140,537 190,537 - Sewer $ 92,877 $ 63,588 100,000 50,000 13,588 63,588 - Storm $ 250,000 $ 342,680 250,000 - 342,680 342,680 - Subtotal $ 3,856,643 $ 4,484,927 - - Project Management Street $ 197,810 $ 417,498 331,864 37,439 50,000 35,634 417,498 369,303 Water $ 12,833 $ 10,769 2,425 $344 10,769 2,425 Sewer $ 6,242 $ 3,593 1,523 2,070 3,593 1,523 Subtotal $ 216,885 $ 431,860 - - Project Contingency $ 9,460 $ 9,460 9,460 - 98 98 98 Eligilbe for 1% for the Arts No $ - $ - - Grant funding not eligible and Staff Adminstration - - TotalExpense $ 4,876,815 $ 5,573,352 988,288 44,250 4,870,000 338,718 4,246,444 5,573,450 1,032,538 Excess{:'3wbcfl} 691,400 (20,605.20) 318,843.05 325,000 (304,493) (98.25) 298,237.85 Discovery Road/Sheridan/19th Street Intersection Safety Improvements Project Description The City secured a second grant to improve the remaining portion of Discovery Road between the Salish Coast Elementary School and the Sheridan intersection. The grant also makes improvements to the intersection for pedestrian and Bicycle safety. Federal HSIP funding is intended for City's to make safety improvements according to the Local Road Safety Plan. Revenue Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 i Revenue Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Revenues Date Year End Budget Federal Grant Funds (HSIP) $ 233,000 - 18,000 5,000 228,000 Real Estate Excise Tax $ 15,000 2,645 15,000 5,000 10,000 Total Revenue $ 248,000 2,645 33,000 10,000 238,000 Expense Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Expenditures Date Year End Budget Design Engineering / Permitting Design Consultant $ 22,000 298 18,000 22,000 Subtotal $ 22,000 Construction Construction Contract $ 170,850 170,850 CN Engineering $ 30,150 30,150 Subtotal $ 201,000 Project Management Staff adminstration non -eligible grant costs $15,000 2,348 15,000 5,000 10,000 Staff adminstration eligible grant costs $ 10,000 5,000 5,000 Subtotal $ 25,000 Project Contingency Eligilbe for 1 % for the Arts N/A REET Used for staff adminstration $ - Total Expense $ 248,000 2,646 33,000 10,000 238,000 Tyler St Pavement Restoration Project Project Description The City secured a grant from the Transportation Improvement Board under the pavement preservation program. This project seeks to preserve the existing roadway and make ADA 11Y Nib °OWN "^ improvements along Tyler Street where the Farmers Market operates on Saturdays. The Street condition is deterioriating rapidly. This grant will help preserve the life of the pavement and improve accessiblity for this important location in Uptown. Revenue Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Total Revenues Revenues Date Year End Budget Transportaiton Improvement Board (TIB) Grant $ 379,354 1,417 379,354 58,367 320,987 379,354 Real Estate Excise Tax $ 75,000 250 66,945 10,300 64,700 75,000 Total Revenue $ 454,354 1,667 446,299 68,667 385,687 1 454,354 Expense Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Total Expenditures Expenditures Date Year End Budget Design Engineering / Permitting Design Consultant $ 37,182 196 37,182 20,196 16,986 37,182 Subtotal $ 37,182 Construction - Construction Contract $ 284,516 284,516 - 284,516 284,516 City Pavement Work Ahead of Construction $ 40,000 40,000 40,000 - 40,000 CN Engineering Consultant $ 28,452 28,452 - 28,452 28,452 Subtotal $ 352,967 Project Management - Grant ineligible staff time $ 35,000 1,470 35,000 8,470 26,530 35,000 Subtotal $ 35,000 Project Contingency $ 28,455 - 21,149 - 28,455 28,455 Eligilbe for 1 % for the Arts - Estimate on budget for REET and not grants $ 750 750 750 Total Expense $ 454,354 1,667 446,298 68,667 385,688 454,354 Excess{De, cfl¢ (0) 0.60 (0) (0.40) General Water Capital Replacement, Improvements, and Repairs Project Description Miscelaneous capital repairs and replacment work comes up most years. The rate analysis includes $200,000 per year of miscelaneous and unforeseen capital improvements. These funds also support removal and replacment of several thousand feet of spaghetti lines (4" or smaller pipes) which are a sources of leaks and system service failures. The city has started replacing 20 year old water meters as well. Revenue Project Budget 2023 Est. Year Initial 2024 Future Budget Total Revenues End Budget Water Operating (411) - - - Water Capital Surcharge (430) $ 100,000 - 100,000 100,000 Water SDC (495) $ 100,000 100,000 100,000 Grants/Loans - Total Revenue $ 200,000 200,000 200,000 Expense 2023 Est. Year Initial 2024 Future Budget Total End Budget Ex enditures Design Engineering / Permitting Subtotal $ - - Construction $ 180,000 - 180,000 180,000 Subtotal $ 180,000 - Project Management $ 20,000 20,000 20,000 Subtotal $ 20,000 - Project Contingency - Eligilbe for 1 % for the Arts No Utilities not included Total Expense $ 200,000 200,000 200,000 Excess{Debca ty Water Meter Replacement Project Description The majority of the City water meters are over 20 years old and are in need of replacement. Meters either start leaking or start missing volume of water in the reads causing the city to lose revenue. Additionally, the meters need to be replaced with an automatic read system to reduce labor costs for reading of meters from approximately 15 person days to 3 person days per month. The meters will be installed in phases over a 3-5 year period. The rate model has meter replacement beginning in 2025. Staff recommends advancing this through extending membrane filter replacement originally scheduled for 2024. Revenue Project Budget 2024 Budget Future Budget Total Revenues Actuals To Date Subtotal $ Project Contingency Water Operating (411) Eligilbefor 1 % for the Arts No Utilities not included - TotalExpense $ 1,729,337 200,000 1,529,337 1,729,337 Water Capital Surcharge (430) $ 1,729,337 200,000 1,529,337 1,729,337 Water SDC (495) Grants/Loans - - - - Total Revenue $ 1,729,337 200,000 1,529,337 1,729,337 Expense Project Budget 2024 Budget Future Budget Total Actuals To Date Ex enditures / Perm Construction AMR setup and project planning $ 1,729,337 200,000 1,529,337 1,729,337 Subtotal $ 1,729,337 - - Proieet Mananement Excess{Debca ty Note: Project budget derived from rate model over 5 year implementation Subtotal $ Project Contingency Eligilbefor 1 % for the Arts No Utilities not included - TotalExpense $ 1,729,337 200,000 1,529,337 1,729,337 Excess{Debca ty Note: Project budget derived from rate model over 5 year implementation 1 Million Gallon Standpipe Reservoir Steel Coating Project Description The 1 -million gallon steel standpipe needs periodic repainting to preserve the structure. The tank has not been recoated since it was constructed in 1995. Engineering and design for painting and corrosion protection is scheduled for 2022 and repainting in 2023. The project will require taking the standpipe offline for approximately 2 months to sandblast and recoat the tank. kN Revenue Project Budget Prior Year Est. 2023 Actual 2023 Budget 2023 Estimate 2024 Future Budget Total Revenues Actuals To Date Revenues Year End Budget Water Operating (411) - - Water Capital Surcharge (430) - - Water SDC (495) $ 850,000 150,000 10,000 110,000 730,000 850,000 - Grants/Loans - - Total Revenue $ 850,000 150,000 10,000 110,000 730,000 850000 Expense Prior Year Est. 2023 Actual 2023 Budget 2023 Estimate 2024 Future Budget Total Expenditures Actuals to Date Expenditures Year End Budget Design Engineering / Permitting Water $ 100,000 - 140,000 - 90,000 10,000 100,000 - Subtotal $ 100,000 - - Construction - Water $ 710,000 - 710,000 710,000 - Subtotal $ 710,000 Project Management - Water $ 40,000 10,000 10,000 10,000 20,000 10,000 40,000 10,000 Subtotal $ 40,000 - - Project Contingency - - Eligilbe for 1 % for the Arts No - Utilities not included - - TotalExpense $ 850,000 10,000 150,000 10,000 110,000 730,000 850,000 10,000 txcess{ ue,m:a ft (10,000.00) (10,000.00) Eaglemount Property Purchase Project Description The City secured funding to purchase approximately 345 acres of property adjacent to City Lake property for the purpose of future pipeline and co -located Olympic Discovery Trail. City received a direct allocation (Commlunity Facilities Project) grant in 2023 to assist with purchase. Additionally, this project is funded through City assets including timber management sales and land sales. Revenue Project Budget Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Budget Total Revenues 2023 Revenues Year End Water Operations (411) Timber Management Harvest $ 500,000 10,000 490,000 500,000 Water Operations (411) Land Sales $ 80,000 80,000 80,000 Wa. State Community Facilities Project Grant $ 750,000 750,000 750,000 Total Revenue $ 1,330,000 1,320,000 1,330,000 Expense Project Budget Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Budget Total Expenses 2023 Expenditures Year End Design Engineering / Permitting Appraisals $ 20,000 20,000 20,000 Cultural Resources Survey $ 20,000 20,000 20,000 Land Survey and Lot line Adjustment $ 20,000 20,000 20,000 Subtotal $ 60,000 Construction Land Purchase $ 951,000 951,000 951,000 Subtotal $ 951,000 Project Management - Staff Time Adminstriation $ 47,550 10,000 37,550 47,550 Subtotal $ 47,550 Project Contingency $ 271,450 271,450 271,450 Eligilbe for 1 % for the Arts N/A $ - Utilities not included Total Expense $ 1,330,000 10,000 1,320,000 1,330,000 Project Budget Established as part of Grant - Revenue depends on timber sales and timing Big Quilcene Main Control Valve Building Replacement Project Description As part of the water supply agreement, a capital spending plan was developed to address y system long term reliability. Investments in the diversions are anticipated in the long-term plan. The main control vavle buidling at the Big Quilcene Diversion has experienced significant rot and needs replacing at the request of the operating crew. - f Revenue Project Budget Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Actuals To Date 2023 Revenues Year End Budget Water - Olympic Gravity Water System Fund (417) $ 125,000 125,000 5,000 120,000 Total Revenue $ 125,000 125,000 5,000 120,000 Expense Project Budget Prior Year 2023 Actual 2023 Budget 2023 Estimate 2024 Actuals to Date 2023 Expenditures Year End Budget Design Engineering / Permitting Design Consultant $ 15,000 15,000 15,000 Subtotal $ 15,000 Pipeline Condition Assessment - 1928 OGWS Pipeline Project Description As part of the water supply agreement, a capital spending plan was developed to address system long term reliability. Evaluation of the 1928 section of the pipeline is included in the plan to accurately assess the remaining useful life. This study will guide replacement strategies to ensure water delivery is sustained. Revenue Project Budget 2023 Prior Year Revenues 2023 Actual 2023 Budget 2023 Estimate Year End 2024 Budget Total Revenues Actuals To Date Water - Olympic Gravity Water System Fund (417) $ 550,000 150,000 10,000 540,000 - Total Revenue $ 550,000 150,000 10,000 540,000 Expense Project Budget 2023 Prior Year Expenditures 2023 Actual 2023 Budget 2023 Estimate Year End 2024 Budget Total Expenses Actuals to Date Design Engineering / Permitting Design Consultant $ 425,000 125,000 425,000 Subtotal $ 425,000 Construction* Subtotal $ - Project Management - - Subtotal Project Contingency Eligilbe for 1 % for the Arts Utilities not included No $ 125,000 $ 125,000 25,000 10,000 115,000 - - - - TotalExpense $ 550,000 150,000 10,000 540,000 Lords Lake Project Description The City is required to retain an engineering consultant to develop alternatives for improving East Dam stability during possible seismic events. The alternatives will also examine minimizing earthquake -induced embankment deformations which can lead to uncontrolled release of reservoir contents. The City secured a High Hazard Potential Dams Grant in 2021 in order to conduct the engineering study. Revenue Project Budget Prior Year Revenues 2023 Actual 2023 Budget 2023 Estimate Year End 2024 Budget Future Budget Total Revenues Actuals To Date Water - Olympic Gravity Water System Fund (417) FEMAGrant- Hazard M itigation Grant $ 88,100 $ 86,900 - 75,000 15,000 15,000 73,100 71,900 - 88,100 - 86,900 - - Total Revenue $ 175,000 75,000 30,000 145,000 175,000 Expense Prior Year Expenditures 2023 Actual 2023 Budget 2023 Estimate Year End 2024 Budget Future Budget Total Ex enditures Actuals to Date Design Engineering / Permitting $ 150,000 35,000 15,000 135,000 150,000 Subtotal $ 150,000 Construction* Subtotal $ - Project Management - - - - - Subtotal Project Contingency Eligilbe for 1 % for the Arts Utilities not included �No $ 25,000 $ 25,000 40,000 15,000 10,000 25,000 - - - - - - - - TotalExpense $ 175,000 75,000 30,000 145,000 175,000 Cathodic Protection - 1928 OGWS Pipeline Project Description As part of the water supply agreement, a capital spending plan was developed to address system long term reliability. Cathodic protection is a key feature in the system needed to extend the life of the pipeline. Cathodic protection is missing in the area between the Master meters and south past Otto Street. This project will install a new cathodic system for this section of the pipeline. Revenue Project Budget Prior Year Revenues 2023 Actual 2023 Budget 2023 Estimate Year End 2024 Budget Future Budget Total Revenues Actuals To Date Water - Olympic Gravity Water System Fund (417) $ 154,000 - 154,000 12,000 142,000 154,000 - Total Revenue $ 154,000 154,000 12,000 142,000 154,000 Expense Prior Year Expenditures 2023 Actual 2023 Budget 2023 Estimate Year End 2024 Budget Future Budget Total Expenditures Actuals to Date Design Engineering / Permitting Subtotal $ - Construction* $ 130,000 Subtotal $ 130,000 Project Management - - - 130,000 - 130,000 130,000 - - - - Subtotal Project Contingency Eligilbe for 1 % for the Arts Utilities not included No $ 24,000 $ 24,000 - 24,000 12,000 12,000 24,000 - - - - - - - - TotalExpense $ 154,000 154,000 12,000 142,000 154,000 Project Description Miscelaneous capital repairs and replacment work comes up most years. The rate analysis includes $200,000 per year of miscelaneous and unforeseen capital improvements. These funds support pipe replacement, and rehabilation such as CIPP or slip lining. Revenue Project Budget 2023 Est. Year End 2024 Budget Future Actuals To Date Bud et Sewer Operations (411) - Sewer Capital Surcharge (430) $ 100,000 - 100,000 - Sewer SDC (495) $ 100,000 100,000 - Total Revenue $ 200,000 200,000 Expense 2023 Est. Year End 2024 Budget Future Actuals to Date Budget Design Engineering / Permitting Subtotal $ - - Construction Sewer $ 180,000 - 180,000 - Subtotal $ 180,000 Project Management $ 20,000 20,000 - Subtotal $ 20,000 - Project Contingency - Eligilbe for 1 % for the Arts Utilities not included - TotalExpense $ 200,000 200,000 Sewer Outfall Project Description This project includes permitting, design and construction to replace or rehabilitate the off -shore portion of the existing wastewater treatment plant outfall system with a new outfall and diffuser. The City has secured Department of Ecology loans to help construct this project. In 2023, Department of Ecology and City Staff worked collaboratively to reduce the loan amount based on timelines. The City will have to re -apply for additional loan money in the future. Revenue Project Budget Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Future Budget Total Revenues Actuals To Revised 7/23 Revenues Date Year End Budget Date Department of Ecology (ECY) Loar/Grant $ 408,000 - - Department of Ecology (ECY) Loan $ 3,330,000 $ 1,070,000 43,631 90,000 46,369 500,000 480,000 1,070,000 43,631 Sewer System Development Charge (495) $ 200,000 - - Sewer(411) $ 170,000 $ 10,000 10,000 10,000 - 10,000 - Total Revenue $ 4,108,000 $ 1,080,000 43,631 1_00_,66-0T_56,369 500,000 480,000 1,080,000 43,631 Expense Project Budget Project Budget 2023 Actual to 2023 Budget 2023 Estimate 2024 Future Budget Total Actuals to Revised 7/23 Date Year End Budget Expenditures Date Design Engineering / Permitting Sewer $ 805,000 $ 770,000 23,631 80,000 56,369 400,000 290,000 770,000 23,631 Subtotal $ 805,000 $ 770,000 - - Construction - Sewer $ 2,710,000 $ - - - Subtotal $ 2,710,000 $ - - - Project Management - Sewer $ 403,000 $ 310,000 20,000 20,000 - 100,000 190,000 310,000 20,000 Subtotal $ 403,000 $ 310,000 - - Project Contingency - - Eligilbe for 1 % for the Arts - Utilities not included - - TotalExpense $ 3,918,000 $ 1,080,000 43,631 100,000 56,369 500,000 1 480,000 1,080,000 43,631 Excess{:'9wyticfld General Sewer Plan Project Description The General Sewer Plan for the City was last updated in 2000. This update involves a signficant review of the entire sanitary sewer system to plan for the next 20 years. The City selected RH2 Engineering in 2021 to complete the plan update. The plan will result in an updated Capital Plan as well as project operational needs for operating the sewer system. Revenue Project Budget Prior Year 2023 Actual to 2023 Estimate 2024 Budget Future Total Revenues Revenues Date Year End Budget Sewer System Development Charge (495) $ 230,000 37,777 76,869 100,000 20,257 134,903 Interlocal Agreement with Jeff. Co $ 30,000 30,000 - Total Revenue $ 260,000 37,777 1 76,869 130,000 1 20,257 1 1134,903 Expense Prior Year 2023 Actual to 2023 Estimate 2024 Budget Future Total Expenses Expenditures Date Year End Budget Design Engineering / Permitting RH2 Contract =198522+189898- less 160,000 for nutrient grant $ 228,420 108,163 72,766 100,000 20,257 201,186 RH2 Contract - Septage Handling $ 30,000 30,000 30,000 30,000 Subtotal $ 228,420 - Construction - Subtotal $ Project Management - $ 30,000 16,629 370 16,999 Subtotal $ 30,000 - Project Contingency - Eligilbe for 1 % for the Arts - Utilities not included - Total Expense $ 258,420 124,792 103,137 130,000 20,257 248,185 Excess{De, cfl¢ 1,580 (87,015.27) (26,267.75) 0 (113,282.84) Wastewater Nutrient Project Description The City's Wastewater Treatment Plant does an exceptional job removing nutrients from the waste stream before reclaimed water is released into the Straight of Juan De Fuca. In order to reduce nutrient loading to the Puget Sound, the Department of Ecology is expected to place new limits on the City's National Pollutant Discharge Elimination System (NPDES) permit. The Citv will receive a qrant to perform a study of the plant to determine what upgrades are °1v'°A' Puget Sound Nutrient, IN �J Source Reduction Project -y necesa ry to comply with the new permit. r 'ijlYr . NEtil O ? Revenue Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Future Budget Total Revenues Actuals To Date Revenues Date Year End Budget Department of Ecology (ECY) Nutrient Grant $ 160,000 4,817 138,000 45,000 115,000 - 160,000 4,817 Sewer Operations (411) $ 15,000 5,691 15,000 9,309 15,000 5,691 Total Revenue $ 175,000 5,691 4,817 153,000 45,000 124,309 175,000 10,508 Expense Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Future Budget Total Actuals to Date Expenditures Date Year End Budget Expenditures Design Engineering / Permitting Design Consultant (RH2 Contract - See Sewer Mas Sewer $160,000 5,593 4,498 138,000 40,000 114,407 - 160,000 10,091 Subtotal $ 160,000 - - Construction - Subtotal $ Project Management - Staff Time nad Reimburseables Sewer $15,000 98 319 15,000 5,000 9,902 15,000 418 Subtotal $ 15,000 - - Project Contingency - - Eligilbe for 1 % for the Arts - Utilities not included - - TotalExpense $ 175,000 5,691 4,817 153,000 45,000 124,309 175,000 10,509 txcess{uem,:avt (0.25) (0.41) 0 (0.66) Water St. Sewer Main Replacement Project Description After a section of asbestos concrete pipe collapsed during the December 27, 2022 King Tide event, the City evaluated the entire section of pipe between the Gaines Street Lift Station and the Ferry Terminal and determined that replacement is necessary. This trunk pipeline serves all of Downtown and most of Uptown and thus is critical sewer infrastructure. The City obtained a low interest loan in the amount of $2.7 million from the Public Works Board Revenue Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Budget Total Revenues Actuals To Date 5/23 Revenues Date Year End Sewer Operations (411) - - - Sewer Capital Surcharge (430) - - - Sewer SDC (495) $ 35,000 35,000 - 35,000 - Public Works Trust Fund Loan/Grant $ 2,700,000 602,000 326,000 2,374,000 2,700,000 - Total Revenue $ 2,735,000 602,000 361,000 2,374,000 1 2,735,000 Expense Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Budget Total Actuals to Date 5/23 Expenditures Date Year End Ex enditures Design Engineering / Permitting Design Consultant $ 461,197 550,000 335,000 126,197 461,197 Subtotal $ 461,197 - Construction - Construction Contract $ 1,997,060 1,997,060 1,997,060 - Construction Engineering $ 88,803 88,803 88,803 - Subtotal $ 2,085,863 - Project Management - Staff Administration $ 52,000 52,000 26,000 26,000 52,000 - Subtotal $ 52,000 - Project Contingency $ 135,940 135,940 135,940 Eligilbefor 1 % for the Arts Utilities not included Total Expense $ 2,735,000 602,000 361,000 1 2,374,000 2,735,000 Excess{Debca ty See May 15, 2023 Agenda Bill for Initial Budget Influent Wetwell Project Description The Wastewater Treatement Plant Influent wetwell is where all sewage collected from the City first enters the treatment plant. This important portion of the plant has experience signficant concrete corrosion and electrical failures. This project was identifeid in a Jacobs Engineering Study as a priority project and has been re -affirmed as a priority project in the General Sewer Plan. The project will involve rehabilitating the influent wet well concrete as well as replacing all plumbing and electrical equipment. Revenue Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Future Budget Total Revenues Actuals To Date Revenues Date Year End Budget Sewer Operations (411) $ 2,120,000 300,000 1,820,000 2,120,000 - Sewer Capital Surcharge (430) - - Sewer SDC (495) - - Grants/Loans - - Total Revenue $ 2,120,000 300,OOOT 1,820,000 2,120,000 Expense Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Future Budget Total Actuals to Date Expenditures Date Year End Budget Expenditures Design Engineering / Permitting Design Consultant (15%) $ 318,000 250,000 68,000 318,000 - Subtotal $ 318,000 - Construction Construction Contract $ 1,378,000 1,378,000 1,378,000 - Contruction Engineering (10%) $ 212,000 212,000 212,000 - Subtotal $ 1,590,000 Project Management Staff Administration (10%) $ 212,000 50,000 162,000 212,000 - Subtotal $ 212,000 - - Project Contingency - - Eligilbe for 1 % for the Arts Utilities not included - TotalExpense $ 2,120,000 300,000 1,820,000 2,120,000 Excess{De, ticfld SCADA update Project Description The Wastewater Treatment Plant was constructed and put into service in 1994. The Supervisory Control and Data Acquisition (SCADA) system has not been upgraded since this time and is outdated. This technical system runs the plant with operator controls. This technical system is a key component of plant operation and needs to be replaced. Currently parts are no longer being produced, thus this project needs to be addressed soon. Revenue Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Future Budget Total Revenues Actuals To Date Revenues Date Year End Budq at Sewer Operations (411) $ 1,140,000 150,000 990,000 1,140,000 - Sewer Capital Surcharge (430) - - Sewer SDC (495) - - Grants/Loans - - Total Revenue $ 1,140,000 150,000 990,000 1,140,000 Expense Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Future Budget Total Actuals to Date Expenditures Date Year End Budget Expenditures Design Engineering / Permitting Design Consultant (10%) $ 100,000 100,000 100,000 Subtotal $ 100,000 - - Construction Construction Contract $ 940,000 940,000 940,000 - Contruction Engineering (10%) - - - Subtotal $ 940,000 - - Project Management Staff Administration (10%) $ 100,000 50,000 50,000 100,000 - Subtotal $ 100,000 - - Project Contingency - - Eligilbefor 1 % for the Arts Utilities not included - - TotalExpense $ 1,140,000 150,000 990,000 1,140,000 Excess{Debca ty Lawrence Street Combined Stormwate Sewer System Separation - Pre -design Project Description The Lawrence Street stormwater system is connected to the sewer system for a section of Lawrence Street in Uptown between the Library and Tyler Street. Separation of this system from the sewer system is a benefit to the Monroe Street sewer lift station as well as the Wastewater Treatment Plant. The cost of the project and scoping needs to be evaluated based on the road condition. Additionally, staff desires to secure grant resources. This project is the first phase to establish a pre -design for competive grant applications. The ..1e o fk... } TS F ...illi.. Revenue Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Budget Total Revenues Actuals To Date 5/23 Revenues Date Year End Sewer Operations (411) - - - Sewer Capital Surcharge (430) $ 50,000 50,000 50,000 - Sewer SDC (495) - - - Stormwater Operations (412) $ 50,000 10,000 10,000 Streets (Paving) Loar/Grant - - - Total Revenue $ 100,000 60,000 60,000 Expense Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Budget Total Actuals to Date 5/23 Expenditures Date Year End Ex enditures Design Engineering / Permitting Design Consultant $ 50,000 50,000 50,000 - Subtotal $ 50,000 - Construction - Construction Contract - - - Construction Engineering - - - Subtotal $ - - Project Management - Staff Administration and research $ 50,000 10,000 10,000 - Subtotal $ 50,000 Project Contingency Eligilbefor 1 % for the Arts Utilities not included Total Expense $ 100,000 60,000 60,000 General Stormwater Capital Replacement, Improvements, and RepairsMt Project Description Miscelaneous capital repairs and replacment work comes up most years. The rate analysis includes $50,000 per year of miscelaneous and unforeseen capital improvements. 'y; Revenue Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Budget Future Budget Total Revenues Actuals To Date Revenues Date Year End Stormwater Operations (412) $ 50,000 50,000 50,000 - Total Revenue $ 50,000 50,000 50,000 Expense Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Budget Future Budget Total Actuals to Date Expenditures Date Year End Expenditures Design Engineering / Permitting Subtotal $ - - - Construction Storm $ 50,000 50,000 50,000 - Subtotal $ 50,000 1,044 1,044 1,044 Project Management 103 - 103 Subtotal $ - - - Project Contingency - - Eligilbe for 1 % for the Arts Utilities - not eligible - - TotalExpense $ 50,000 1,044 103 50,000 51,044 1,147 Excess{:'3wbcfl} (1,044.28) (102.57) (1,044.28) (1,148.85) Logan Stormwater Outfall Repair Project Description The Logan Street storwmater discharge point is eroding the Bishop drainage way. The erosion needs to be controlled by installing approximately 200 feet of pipe from the existing pond to the bottom of the natural drainage way. Revenue Project Budget Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Budget Future Budget Total Revenues Actuals To Date Revenues Date Year End Stormwater Operations (412) $ 100,000 15,000 85,000 100,000 - Total Revenue $ 100,000 15,000 85,000 100,000 Expense Prior Year 2023 Actual to 2023 Budget 2023 Estimate 2024 Budget Future Budget Total Actuals to Date Expenditures Date Year End Expenditures Design Engineering / Permitting Subtotal $ - - - Construction Storm $ 85,000 85,000 85,000 - Subtotal $ 85,000 Project Management $ 15,000 15,000 15,000 - Subtotal $ 15,000 - - Project Contingency - - Eligilbe for 1 % for the Arts Utilities - not eligible - - TotalExpense $ 100,000 15,000 85,000 100,000 Excess{De, ticfld 111y (f port Townsen Submitted By: Connie Anderson Department: Finance Agenda Bill AB 23-266 Meeting Date: November 20, 2023 Agenda Item: X.0 ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Date Submitted: November 16, 2023 Contact Phone: 360-379-4403 SUBJECT: Ordinance 3326 Related to Public Utility Taxes and Amending Port Townsend Municipal Code Section 5.84.030 CATEGORY: BUDGET IMPACT: ❑ Consent ❑ Resolution Expenditure Amount: ❑ Staff Report ❑x Ordinance Included in Budget? Yes ❑ No ❑ ❑ Contract Approval ❑ Other: contract amendment ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3 -Year Strategic Plan: N/A Cost Allocation Fund: Choose an item, SUMMARY STATEMENT: The City imposes a 18% tax on the revenues of the City's storm and surface water, water system, and sewer utilities. 1.5% of that tax will sunset on December 31, 2023. The City also imposes a 22% utility tax on the revenues of the City's solid waste utility. 2% of that tax will sunset on December 31, 2023. Public utility taxes are part of the general revenues to the City. In the 2015 Council meeting minutes, when the additional 1.5% public utility tax was added, it was outlined that the additional funding would be used to support streets, parks, and facilities. The recommendation from Finance & Budget Committee is to continue the 18% public utility tax on the revenues of the City's storm and surface water, water system and sewer utilities. The recommendation is to also continue the 22% utility tax on the revenues of the City's solid waste utility. In addition, the recommendation is to use the full public utility tax to support all the general services of the City. This creates one big bucket, allowing broader use and greater flexibility without creating limitations and complexity. The Finance & Budget Committee discussion can be viewed on the City of Port Townsend website: I�rott s://clit of a°anlicus.com/ Ila eu°/cilli /29 I?vliew lid :4&u°edliu°ect......:tu.°ue&I� :b0ec8e0efb I p,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,p,,,,,,,,,,,g,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,p,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,......,,,,,,,,,,,....,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,..,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 5 72 �48cfa698e88 �c8906 ATTACHMENTS: • Ordinance 3326 related to Public Utility Taxes and Amending Port Townsend Municipal Code CITY COUNCIL COMMITTEE RECOMMENDATION: October 4, 2023 — Finance & Budget Committee — recommendation to bring continuation of full 18% public utility tax to the general fund and remove the sunset date. RECOMMENDED ACTION: Move to approve first reading of Ordinance 3326 related to public utility taxes and amending Port Townsend Municipal Code Section 5.84.030. ALTERNATIVES: ❑x Take No Action ❑ Refer to Committee ❑ Refer to Staff ❑x Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: Ordinance 3326 Page 1 of 2 ORDINANCE NO. 3326 AN ORDINANCE OF THE CITY OF PORT TOWNSEND RELATED TO PUBLIC UTILITY TAXES AND AMENDING PORT TOWNSEND MUNICIPAL CODE SECTION 5.84.030 RECITALS 1. The City of Port Townsend imposes a 18% utility tax on the revenues of the City's storm and surface water, water system, and sewer utilities. 1.5% of the utility tax will sunset on December 31, 2023. 2. The City of Port Townsend imposes a 22% utility tax on the revenues of the City's solid waste utility. 2% of that utility tax will sunset on December 31, 2023. 3. In order to maintain the current level of City's services, the City will extend these additional percent tax until December 31, 2025. NOW THEREFORE, the City Council of the City of Port Townsend do ordain as follows: Section 1. Amendment. Sections 5.84.030(G) of the Port Townsend Municipal Code are amended as follows: G. Effective April 1, 2022 t4fettghPeeember- 31, 2023 there is levied a fee or tax equal to 18 percent on the gross revenues of the following utilities: 1. The city's storm and surface water utility established under Chapter 13.31 PTMC; 2. The city's water system established as provided in Chapters 13.11 through 13.17 PTMC (the "water code"); and 3. The city's sewer system established as provided in Chapters 13.21 through 13.24 PTMC (the "sewer code"). Eff,eetii,e ja-ftttat-f 1, 202 4, �he fee or- tffli shall r-e-,,et4 to 16.5 . The capital surcharge component of the water, sewer, and storm and surface water rates is excluded from the city's utility tax. Ordinance 3326 Page 2 of 2 Contracted raw water sale revenue to Olympic Gravity Water System customers may be excluded from the city's utility tax if the contract provides a reasonable administrative fee per Chapter 13.18 PTMC. Section 2. Amendment. Sections 5.84.030(H) of the Port Townsend Municipal Code are amended as follows: H. Effective January 1, 2019,t4r-etigh Deeember- 31, 2023, there is levied upon, and there shall be collected from, the city's solid waste or garbage utility a fee or tax equal to 22 percent of the gross revenues of such utility established pursuant to Ordinance No. 1366 for the purposes as provided in Chapter 6.04 PTMC. E feet -iv e T,,, tiat-f ' 2024t4e fee or- tax shallevert to 20 per-ee*t. The tax shall appear and be separately itemized on the monthly bill of each retail customer of the solid waste or garbage utility. Ftin s shall be ""eeated as folio Section 3. Severability. If any provision of this ordinance or its application to any person or circumstance is held invalid, the remainder of the ordinance, or the application of the provision to other persons or circumstances is not affected. Section 4. Effective Date. This ordinance shall take effect and be in force five days after the date of its publication in the manner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, at a regular meeting thereof, held this 20th day of November 2023. Attest: David J. Faber Mayor Approved as to Form: Alyssa Rodrigues Heidi Greenwood City Clerk City Attorney 111y (f port Townsen Submitted By: Emma Bolin Department: PCD Agenda Bill AB23-267 Meeting Date: November 20, 2023 Agenda Item: X. D ® Regular Business Meeting ❑ Workshop/Study Session ❑ Special Business Meeting Date Submitted: 11/15/2023 Contact Phone: 360-390-4048 SUBJECT: Evans Vista Pro Forma, Final Design and Next Steps CATEGORY: BUDGET IMPACT: ❑ Consent ❑ Resolution Expenditure Amount: ❑ Staff Report ❑ Ordinance Included in Budget? Yes ❑x No ❑ ❑ Contract Approval ❑x Other: Discussion Item ❑ Public Hearing (Legislative, unless otherwise noted) ❑ 3 -Year Strategic Plan: N/A Cost Allocation Fund: Choose an item, . SUMMARY STATEMENT: For the past eight months, the City worked with Thomas Architecture Studios and ECONorthwest to master plan a dense mixed income, mixed use neighborhood on the City owned property called "Evans Vista." On October 6t", 2023, City Council and the public walked the site and discussed conceptual designs with City Council, Planning Commission, and public vision for this site. Staff will detail what we heard and how it shaped our final design, namely interest in density, height, open space, and to maximize the quantity and timely delivery of affordable units. The decision requested from Council at this moment is to approve of the final site design to achieve this vision so that the project team can apply for entitlements, specifically final engineering and application submittal for City subdivision permit approval. Subdivision approval is a critical benchmark so that the City can prepare a Request for Development proposals in 2024, determine non-profit developer partners, weigh options for property conveyance and any City offered development subsidy and incentives. The project team will also present the pro forma, which is the financial feasibility study for this final design concept. We welcome discussion that will help guide pre - development activities starting in 2024. This discussion will provide staff feedback on positioning City capacity to pursue opportunities for future site infrastructure, designing a Request for Proposal and phasing process, and the need for a market demand study to validate our proposed unit type counts. ECONorthwest has completed a pro forma of the Master Program final design, which is the conceptual "program" for unit/building types, and analyzed local and macroeconomic conditions to determine the value of the project. This analysis is critical because it portends what lenders will underwrite for market achievable rent and unit sales. Existing market conditions means that a project without any income related restrictions would not be able to pencil—the cost to develop and operate the buildings exceeds the rent revenue that would be generated. Low-income housing mix available through federal tax credits to non-profit partners reduce the amount of gap financing needed; however, these projects must ensure long-term operations capital and are subject to prevailing wages and they also charge a developer's fee to recapture project management expenses. Mixed use projects are also challenging under these subsidy programs for both non -profits and for-profit builders alike. Timing to obtain subsidies such as through Low Income Housing Tax Credits may require multiple years and application rounds. Staff recommend spending a considerable portion of 2024 developing an RFP and processing bids for development while accomplishing necessary pre -development activities to position the project for success in the next market cycle. "Keep moving forward" is the feedback heard from the Evans Vista Technical Advisory Group, comprised of Housing Solutions Network, affordable housing non -profits such as Peninsula Housing Authority, Olycap, Habitat for Humanity, and Olympic Housing Trust, lenders, realtors, and several at -large community members. Forward movement starts with City Council final design approval and entitlement application. During the entitlement process, the City must consider next steps to find quality developer(s). Pre - development near term actions will support our due diligence efforts while waiting for the right market conditions that support housing density and affordability. For example, the City can develop a phasing plan to achieve our state grant requirements relating to unit quantity and affordability, evaluate RFP requirements with developer focus groups, continue outreach to housing partners/providers, pilot a community land trust phase for townhome ownership, and develop the City's capacity for grant applications and subsidy availability.' Finally, the City hopes to conduct a housing needs assessment as part of its Comprehensive Plan Periodic Update. The market information available as part of this study, specifically about workforce housing needs, would provide current insight into market demand to reach the right amount of affordable units and unit types (e.g. studio, 1, 2 3 bedroom quantity); however, the assessment scope would need to ensure developer perspectives as well as a close-up look at Evans Vista. To achieve Council goals for density and speedy housing construction, the City could prioritize several RFP's for each of the phases. This could enable an affordable housing project to come online before releasing a subsequent RFP to establish the market -rate buildings on the site. Disposition of the land and developer(s) selection will present land use and legal complexity, which increases considerably should the City elect to manage multiple conveyances/leases and development agreements with potentially multiple developers. Staff capacity to manage this project should be enhanced. A project/construction management firm with land use legal and land use assistance will likely be required. 1 Each local housing non-profit expressed that in addition to the sewer lift station, City assistance will be needed for sewer, water, stormwater connections, streets, sidewalks, telecom, electric, and landscaping. These are expensive components of development and having these complete and available may make our site more attractive to developers. This "pre -development" activity could take 12-18 months and the market may change during this time. Alternatively, Council may wish to reconsider the goals of the project and reduce density of multifamily units in order to accomplish faster housing construction that would be more viable in today's market. Replacing more expensive to construct podium buildings with walk-up apartments, for example, helps feasibility, but presents design challenges relating to parking, grade, and reduces overall density—a high priority goal. If the current program isn't feasible with macroeconomic conditions, unit mix may need to change, the number of homeownership units vs. rentals may need to change. If the whole site is placed for a bid, the City will need to establish timelines and staffing resources to go through multiple rounds of RFP that may be needed to find the right balance of development scale, development partners, and economic timing. If the City elects to do this, it is important to time it with appropriate market conditions to ensure that a high-quality developer is identified in an early round. Schedule and Funds: The Evans Vista Master Plan culminates in entitlement application to attract quality bidders in an RFP process. The entitlements will be accomplished no later than March 2024. Mill Road sewer lift station construction is anticipated to begin in late 2025. The City has held back $20,000 in contingency funds for the Master Plan for future RFP support. There is an opportunity to leverage bond and sale proceeds from Cherry Street to support pre -development activities. This would require Council action to amend the bond ordinance. In the meantime, the City's 2024 Budget recommends hiring a term grants coordinator to help position this project specifically with funding for infrastructure subsidy. Additional details on the Evans Vista Housing Development Master Plan are available on the City's website- .1 ::t.p...//piit of t.us/en. a e t/ a e/evens vlista l�ouslin d.2y!2J1.gpMLnt masteur plain. Those interested in being involved in the planning process may request to be added to the mailing list by emailing bolluir„� ATTACHMENTS: a. Exhibit A Evans Vista Final Site Design b. Evans Vista Final Design and Financial Feasibility Presentation CITY COUNCIL COMMITTEE RECOMMENDATION: N/A RECOMMENDED ACTION: Move to approve Exhibit A, the final site design for the Evans Vista Master Plan so that the Project Team can apply for subdivision entitlements. ALTERNATIVES: 0 Take No Action 0 Refer to Committee 0 Refer to Staff ❑ Postpone Action ❑ Remove from Consent Agenda ❑ Waive Council Rules and approve Ordinance ❑ Other: OVERALL UNIT COUNT: YUSE / MIXED APARTMENTS : 167 WALK-UPS: 42 / FOREST BLOCK APARTMENTS: 94 REFUSE COLLECTION J� ART PLINTH. TOWNHOMES: 16 s 6 fiaa ART PLINTH- _ _ S IS BIKE RACKS c//. — EVANW,.. TOTAL: 319 UNITS villi, � — ��'MIXE6USEANDAPARTMENT UNITS ALL ALL ELEVATOR ACCESS BUS STOP PAVILION BIKERACKS w — 30® PAVILION B COMMUNITY ,;; GARDEN ,,,, T- � ja �� D A tl TRAIL BULLETIN m BOARD UNIT TYPE COUNT: ART PLINTHJ i BUS STOP � ,� �® �) � PAwuoN�� � sTuolo: 121 ��ox �' PAVILION �--"' 1 U I',I -' "' I COMMUNITY GARDENS I BEDROOM: 141 RAISED/TEXTURED i ��� ��� ������'���CCC o< CROSSWALK ' J�uJ �\ O ` 0 2 BEDROOM: 35 �U LL STREET � // ®' REFUSE COLLECTION G =�.\ �' a8 3BEDROOM: 6 �GRASPAVILION SCRFIR_ DOG PARK TOWNHOMES: 16 EfEE V �P.CCESS REFUSE COLLECTION �'-� PLAYGROUND � �oxT ALL/— // TOTAL: 319 UNITS PEDESTRIAN TRAIL -AUDITORIUM/STAGE xee��eu-w�BRIDGE - PAVILION -- -TO MIIILL ROAD MADRONEPIc IC ROVE SITE PLAN _ �,..-60-0 BUILDING USES: PARKING SUMMARY: BUILDING: UNITS PER STORIES: COMMERCIAL TUCK-UNDER GARAGE BLDG: PER BLDG. PARKING PARKING A 74 4 2,5COSF SURFACE STALLS 246 B 33 4 1,7EO SF PARALLEL 37 C (C1, C2) 30 4 2,2CO SF GARAGE (BLDG F, G) 44 v . A(Dl D2) 21 3 NA TOWNHOME GARAGES 16 ;�•;; /J% ///// ;;,,,,,,i//„ii����,s/[[[€ [[[[€�%% iiii3:1.TOTAL343 F 47 4+1 NA PARKING STALLS G 47 4+1 NA PARKING RATIO :1 .08 What We Have Heard • Non -profits need public infrastructure completed • Amplify density • Maximize unit counts • Increase townhomes — more immediate viability but less density • Need housing sooner than later • Need more assistance on public private partnership • Need to understand capacity to build at scale and at speed • Increase number of affordable units • Ensure housing is available for locals and not vacation units • Needs to be a new neighborhood and stand the test of time • Should not be 100% low income units, but rather mixed income • Try to scale for local builders to the extent possible • Need to develop local builder capacity for multifamily construction • Need housing authority participation • Mixed income buildings introduce financial risk for tax credit recapture • Unit mix needs to focus on mix of low income and attainable housing i.e. 150% AMI and less Tonight's request: • Recommended Motion: Approve Exhibit A, the final site design for the Evans Vista Master Plan so that the Project Team can apply for subdivision entitlements. Aid itmor, /Mv 5 I11hillle IXIau+ni — th A. d"munnn-1 ,vweYMv ll'iimrwr11 —6,11 Ili Binfoi ru'utsfkm � i f ielsglr'w pPe Studies Project IntrDdwciien & Presentation Meeting with City Council Pro]ect Research / Initiol housing & eommuniiiy dewelaper outreach - Distribute Flyers Site Clearing I Brush Hoeg 'Tol,ed Vlsk,rinarlg & Se„ Onenin ie V hrr.a'k n Project Development: Draft Development Plans & Integrate public comments Schematic Design of 03) site plain allfernatives Public Engagement: prepare Presenfoiicn Documents Public Engagement: Public, Planning Commission, City Council Entitlement (Planning, Generate initial draft of entitlement documents Pfnu" incfall A nnlvnl�; Incorporale all feedback lo -date Into u Create Building Prototypes Caliendo Building Tvoes cuslcmized for Outreach to reaVonal housina &. Generate Design Developmenl Alternalives �2 of 3J Prepare next round at Public Outreaclh Engagement Presentation of project update & alternatives through public outreach meet Review summory with Prol Team & make final recommendations Bell a Hon, lit 1111 iefenied All enn?,allves. Update prcierred Do_ign Development Mfornallva Prepare Final Preseniailon Package Final Presentation & Summary to Public, Planning Commission & City Council Ennfill4er„niniif Applications atiions Land Use entltlenmonf applications submitted Initfal review & respond to Cily carnmenis City review/ Land Use approval Next stens 0 Indicates Stakeholder & Pubfic Outrteach Meetings siaff0 ccrordinalian meetings 4d ! ' fission & City Counciil check -ins ch meetings pVi iidi M 1SII, " Binfoi ru'utsfkm � i f ielsglr'w pPe Studies Project IntrDdwciien & Presentation Meeting with City Council Pro]ect Research / Initiol housing & eommuniiiy dewelaper outreach - Distribute Flyers Site Clearing I Brush Hoeg 'Tol,ed Vlsk,rinarlg & Se„ Onenin ie V hrr.a'k n Project Development: Draft Development Plans & Integrate public comments Schematic Design of 03) site plain allfernatives Public Engagement: prepare Presenfoiicn Documents Public Engagement: Public, Planning Commission, City Council Entitlement (Planning, Generate initial draft of entitlement documents Pfnu" incfall A nnlvnl�; Incorporale all feedback lo -date Into u Create Building Prototypes Caliendo Building Tvoes cuslcmized for Outreach to reaVonal housina &. Generate Design Developmenl Alternalives �2 of 3J Prepare next round at Public Outreaclh Engagement Presentation of project update & alternatives through public outreach meet Review summory with Prol Team & make final recommendations Bell a Hon, lit 1111 iefenied All enn?,allves. Update prcierred Do_ign Development Mfornallva Prepare Final Preseniailon Package Final Presentation & Summary to Public, Planning Commission & City Council Ennfill4er„niniif Applications atiions Land Use entltlenmonf applications submitted Initfal review & respond to Cily carnmenis City review/ Land Use approval Next stens 0 Indicates Stakeholder & Pubfic Outrteach Meetings /2 2 F" A G V fA M 'f 0 d, "d, G V ]" A G "I"" I A "d, ,II,G 0 0 "d, G //41" H .. . . . . . . . Virlh 7 � 1; C C 0 N C i L 8 R i E F i N 9 f II II .. . . . . . . . . C II fl C 0 U II",J), C II II/l�`l A II","l, II","l, II IP","JJ C 0 M M II S " II 0 II111,J1U C stn EVTAG — REVIEW FINANCIAL SUMMARY • Provide feedback 20TH PRESENTATION — CITY COUNCIL/ PUBLIC • Review financial summary A PAVILION COMMUNITY GARDENS TRAIL BULLETIN BOARD ART PLINTH -N BUS S) (-)I, PAVILION RAISED/TEXTURED ....Bryn% REFUSE COLLEC mea-/-nrciu�c TO MILL ROAD .SITE PLAN 11 FOREST BLOCK APARTMENTS: 167 li WALK-UPS: BUILDING USES: BUILDING: UN IS PER STORIES: COMMERCIAL IUCK-UNDER GARAGE REFUSE COLLECTION ."w 'MIXED-USE AND APARTMENT ART PLINTH A !4 4 2 OO SF ARTPLINTH 633 ( BIKE RACKS 1,750 SF C (Cl, C2j 30 EN PTT S VIS 2,200SF o D (D 1, D2) �...� C2 NAF 47 /o Z BUS STOP PAVILION PAVILION COMMUNITY GARDENS TRAIL BULLETIN BOARD ART PLINTH -N BUS S) (-)I, PAVILION RAISED/TEXTURED ....Bryn% REFUSE COLLEC mea-/-nrciu�c TO MILL ROAD .SITE PLAN 11 MIXED-USE APARTMENTS: 167 li WALK-UPS: BUILDING USES: BUILDING: UN IS PER STORIES: COMMERCIAL IUCK-UNDER GARAGE TOTAL: BLDG: 'MIXED-USE AND APARTMENT PER BLDG: PARKING PARKING A !4 4 2 OO SF 633 4 1,750 SF C (Cl, C2j 30 4 2,200SF o D (D 1, D2) 21 3 NAF 47 NA Z PARKING SUMMARY: SURFACE STALLS 246 PARALLEL 37 GARAGE (BLDG F, G) 44 TOWNHOME GARAGES 16 TOTAL343 PARKINGSTALLS PARKING RATI0:1.08 OVERALL UNIT COUNT: MIXED-USE APARTMENTS: 167 li WALK-UPS: 42 �1 APARTMENTS: 94 TOWNHOMES: 16 TOTAL: 319 UNITS 'MIXED-USE AND APARTMENT UNITS ALL ELEVATOR ACCESS UNIT TYPE COUNT: 0 SiUDIC > 1 BEDROOM 2 BEDROOM n" 3 BEDROOM TOWNHOMES 1 1 —1 Z-21 hi 121 141 35 6 16 TOTAL: 319 UNITS 11 CONCEPTUAL RENDERINGS Evans Vista Housing Development m� �E�b�sof ort,,,9,,0 Townsen''d What the Master Plan Considers • Jefferson Transit coordination • Adjoining properties • Utility efficiency • Maximize open space and density • Keep parking toa minimum • Ensure amenities for the development as well as the greater public including indoor/outdoor meeting space • Commercial Uses toward the entrance • Topography Considered • Fee simple units — townhomes • Townhouse groupings 4 or less — accessible to local builders • Preservation of wetlands • Preservation of madrone tree grove November 20, 2023 j ECO northwest ECOnorthwest IU UI=IIVCI U161=11Lly 111=1=UCU IIUU.>1116 >U`. ply CIIIU LU Clt LIVCIIC the Evans Vista neighborhood IM Part of a I iii -- iii iii vision Ibased on Che iiiiiiiii iii Street and IIIA IIIA iii Shms Way StAbareaNan (201.. To achieve a mix of subsidized, affordable housing and workforce housing iii iii iii i iii t iii iii iii in - ... Ieast 25% of tx lin iiia are lire t iii iii Iby WA Dept. of Commerce . Ibe affordabIIIetAnder % of Che Area iii iii Bili (AMI) 0 AdditionaIII Consideration- Nan for 50 totaIII txi iii ts with to IIIA to E Che txi iii ts affordabIIIe at % of AMI (beyond iii iii iii iii iii i iii lire tA iii iii iii iii ECOnorthwest / MLA 1MVC CIL ICCIJI 1JV LAI 11L.> kl.UI 1 CI Il PICII1 I ICIJ J17 units) • Provide housing options at attainable prices • Provide housing with enduring affordability (income/deed-restricted) ECOnorthwest Some units would be restricted to households earning 50% to 80% of AMI range. (approximately $30,000 to $70,000 depending on the unit)* These units would cost about $500 to $1,500 per month, before utilities and other expenses." And, target AMI could be LOWER! 'I'lased �)n 2023 AN deffined Iloy U.S. Depariiaien� f �L..k)ushng and Urban 1:;7ev0k�)1pn'ieni. 4 pers���)n AN h;)r Jeffeirs�)n G�)uniy is $83,4M `1 k�)usehllds fin an hna)n'ie resil Icted unH m�)uW stipend im) au�)re Than 30% hna��)n'ie �)n h��wshng a�nis. FA ECOnorthwest 1 1) Most units would target middle income households in the 80 to 120% AMI range. (approximately $47,000 to $104,000 depending on the unit) These units would cost about $1,000 to $2,300 per month, before utilities and other expenses. The subsidies for these rents could come from: • Multifamily Tax Exemption (MFTE) • Special funding/financing • Land dedications • Value capture ECOnorthwest JI IC. 7 ClU CJ W W= UC VCItip I=UI J ClUI CJ W 1 CI I ICIII 1 CIJ IJ 0 Dev6oped areas to in6h,Ade b t,iii III iii in s, parIking, sidewaIHk,garden, open space, t riii 111 s min st iii in Units 0 lim to III t iii f a lim iii III y to lin iii i s stuns 47% oine,,,,. lb e d iro o irn s 1.2% two Ib e d iro o irn s 2% t1hiree Ib e d iro o irn s 0 6 townhotAses (1,400 sq. ft. to in iii i s ECOnorthwest IiLv ■ 01iWl991 Q1 0 1R CJ1 8,500 sq. ft. iireta 111 0 2,000 sq. ft. daycare area other striAchAres andsite . A Imes ., IIIA iii III iii iii Parking 0 3 staIII III 1.08 staIds per to iii iii a Density (based on 9 acres) 0 35.4 dw6dingto iii iii ts per acre 0 0."'76 flour area ratio ECOnorthwest It is useful to think about the feasibility of the site from a strictly private perspective without public participation (e.g., examining it with current market prices for costs and rents). It allows the City to understand: 01 The vakieof the � nd �t owns 01 The SU s6 s needed to fUnd its affordabfflty goads 01 The ki of hicentrves offered to SU ort city goads 01 The hmpact of other city actons ® SUch as bLffldhig hifr strU tUr 01 The M.f r ntW performance of devOopart sits Lffl hi s ECOnorthwest Estimated Total Project Costs: $111 to $126 million MUffifarnHy Costs WOLdd range Ener $312,000 per Lfllr t to $380,000 per L lit, dependhig on the L lit rn�x and the ccsnstrLJ t� Ml type. TownhOUses WOLdd cost $458,000 r L lit Esthmates hIdUde costs to devOop parkhigopen space arnenffies. Esthmates hIdUde devOoper profit expectatons % to %. The stht s oHnd and sewer ccsnn t�on to the .............................................................................................................. site the Oty COLddontr�bUt to attract devOo meart® An affordable housing development could use funding sources that require prevailing wages to be paid, potentially increasing the project costs by about $7 to $8 million. ECOnorthwest 21 banks who finance the development consider what rents the development can achieve. The amount of financing and investment is dependent on the rents of comparable, new construction properties in the same housing market. This is the "market -achievable" rent considered in this analysis. Market -achievable rent is not restricted by income, so it can fluctuate with time. Strong economic and wage growth can raise market -achievable rents. A simple way to think about it is what are prices currently observed in the marketplace. In today's economic conditions, the achievable rents for the quality of units considered for Evans Vista are likely at levels that would be affordable to households earning about 120% of AMI. ECOnorthwest 2', Today's market rents* in newly built multifamily buildings would be affordable at about 120% of AMI. 0 Sh�A d i o - $1,500/mo. lig .- Ib lino lig - .... 700/mo. IIIwo-dbedroom, $2,000/mo. 111... II lige .- Ib lino lig - $2,300/mo. ,�' airke< ur un�s is iu ilioii iiied by r ink ur in�6 IlisHin s, which findude $1,850/in,io.find as est II a ir o o ir A p a ir tiii e in �s® ECOnorthwest 2 • A project "pencils" or is financially feasible if the ' Needed value of the project ®.®-®-®-®-®-®-®-®-®.®.®. exceeds the total costs. Otherwise, subsidy is Rental Revenue required. and • The value of a project is Sales Prices highly dependent on Macroeconomic assumed rents, prices, and interest rates. Factors DEVELOPMENT VALUE Profit Incentive Hard Costs (Construction) DEVELOPMENT COST ECOnorthwest 2 cfirlvhqg up Ileo u.0 s li unIp urli e .. j acquisition ou,uir : Il he II euAeir �► ECOnorthwest Federal funds rate is a main tool for the Federal Reserve to influence economic activity (inflation and unemployment). Lowers fed funds rate to manage economic shutdown Starts to raise fed funds rate to lower inflation rate 2W9 200 2,0 2021 202.2. 20123 4.00I' `ou,uirce: yd uuir2s,coir �► ECOnorthwest 2a Zillow Home Value Index for Port Townsend • Doubled from March 2017 to June 2022 • Peaked at $689,000 in June 2022 • Lower at $623,000 in September 2023 $7299 ff, °. 43IK $ 2.4.31K 2016-03 2017-01 2011 7111 20118-09 2010-07 202005 20211-03 202.2-011 2022111 2023-09 Real estate is sensitive to interest rates because it is debt -levered. • High interest rates keep banks, investors, home buyers on the sidelines. • Today's rates (approx.) ilrir; iii ilr. III &S" m 1.. . ECOnorthwest M4) Based on today's achievable rents for workforce housing in Port Townsend, q.M based on today's interest rates and construction costs, which are high, even a development without income -restricted units would not be feasible: the gap could be as large as $55.5 million $140 0 =_ $120 75 $100 $80 $60 $40 $20 $70.6 Development Value $126.1 Development Costs *Dev0k)piaienii V(flue us he esihaia lied rescfle v(flue c)f a oin��)peiriy oased ���)n ach�evab�e ���)peirafing hna��)iaie and a requhred aralle urslluinin caHed cqoHakzaik�)n awe. ECOnorthwest 31 • Higher rents would reduce Subsidy Needed 111111 housing affordability. Millions • Lower construction cost is $(75) $(50) $(25) $- unlikely without a recession. Today -$55.5 mommommom • Removing more costly +10% Rent -$46.1 11111111111111111111 construction types can improve feasibility. -10% Costs -$42.9 • A return to pre -pandemic Replace Podium Apartments $42 5 wth WaIkupApartments interest rate conditions would 3% (Lower Interest Rate improve feasibility. (pre -pandemic level) $30.4 • A combination of factors is needed. Example: 10% reduction in costs, 3% interest rate drop, 10% rent increase, and podium makes the project pencil without subsidy ECOnorthwest Interest Rates Will Stay 1igh for Several Years Rguire 1. Ik ONAC APII','IIROIPIRIAT"IE FIEH)EIRMF'IJNI[')S IMuE p 0 �rrdl'i ip Slep-23 FONA G parlicq-oMs' pojections i un -23 FOM C paqICIpar45'prOjeCtIO flS Xr4 1095 2n26 Souirce: IIIIIIVA Reseu:Airch Path of interest irates is veiry uncertain. Projections about -fed funds irate Ihave lbeein changing. hn September, about 1.75% IIS it -fed funds irate was projected to occur lby 2025, and 2.75% IIS it Ib y 2026® I Ihe estimates ca in c1hainge ii December. ECOnorthwest 1 1 I%- 1 %-I 1 LLa I I I V MJ11 Ib 1 1 ILA 1 I%%- L III 1 W1 L I V VV 1 IJt.I ILA IJ I IV L JLI V 1 Ib %_I I V LAbI 1 today to pay for many amenities and new multifamily developments that have been built in more urban places. Current macroeconomic environment (high interest rates) is not conducive to new developments, even for market -rate. IIV Iowever, develq in�nen''tBE FEASIBLE in a it .... n a iir Ilk .... .... iir iii r es iir iiiii ire ire .... IIS iii re T .... Lack of feasibility in the near future suggests Port Townsend needs to strongly consider phasing developments in Evans Vista, strategically adapting to market conditions. ECOnorthwest There are two strategic options for the City: 1) To generate an attractive RFP that will receive bids from a large developer interested in the whole Evans Vista site, the City will likely have to wait until economic conditions improve. This op Lion is likely to result in a more efficient delivery .the Ci 2) The City can portion out parts of the site for more executable projects, partnering with smaller and/or nonprofit developers while reserving the rest of the site for future development. This op Lion will likely require more andlonger-",term involvemen t f ro m the Cid and fly i lli ty in projec. Lions site planning, infrastructure provision, subsidy generaLion, etc.) ECOnorthwest 1, %-110111=1161116 UCVCIU` l I ICI Il t-Ui iUi LiUi i.> 11 iCai iZ. Li M %.i Ly Uai i UiVC deeper into key land development activities. 1. Define affordable housing project (likely a LIHTC-backed) 2. Explore needed actions for community land trust model project 3. Update financial outlook as conditions improve 4. Develop first draft of key terms for development RFP(s) ECOnorthwest I conditions workforce housing, the City can do the following as it ECOnorthwest 40% of AMI 9% LIHTC $3.5 City and State Property tax exemption 60% of AMI 4% LIHTC $6.7 Too large to fill by City Property tax exemption and State 80% of AMI 8 -year MIFTE $10.3 Inadequate returns for Private -sector investment private sector 100% of AMI Private -sector investment $9.9 Public funding is very Workforce Private -sector investment $8.9 limited or not available Housing (120% of AMI) ECOnorthwest 38 City: Evans Vista Technical Advisory Group • Market demand study will need to be completed • Master Plan is not absolute. Many changes may be needed with market changes e.g. unit mix, owner/rental ratio • Capital requirements reduction possible with smaller unit square footage • Decreased size and number of studios, increased 2, 2-3 bedrooms units could decrease capital need and increase rent value • Delays to wait for the market should also consider cost differences for site preparation. • City should install all infrastructure to attract developers ASAP. • City should speak with Housing Finance Commission and other interested non -profits. • For-profit developers require a larger project unless they can bid the whole site. • Market, create demand, publicize, hold more events, activate the site. • Don't increase townhomes, but consider swapping podium with walk ups or tuck under multifamily for financial feasibility. City: Evans Vista Technical Advisory Group • Push! Land prep with take 2-3 years anyways. • Develop buildings geographically from front of neighborhood to back. • Well-written RFP and outreach are needed to determine if project is ready • Focus on affordable rentals first, that are designed well and fit PT vibe • Mixed income buildings are best practice • Housing scarcity and lack of funding naturally leads to phasing • The upcoming legislative session involves more affordable housing money • Local employee housing needs put this project in the City's interest • How land is disposed factors into financing e.g. donation, sale, long term lease, trust? • Confidence level needs to be high. Typical affordable housing projects require $1million in pre -development expenses prior to construction financing. • Master Plan is a framework and is not literal • Developers need to bring their specialties to the project • Plan will need to be adaptable over time • RFP provides side boards and City requirements • Proposals provide design elements for buildings Unit Type counts can be modified. Market Demand Study can help. 43 as 1 Evans is u .,- m MixedU BuuPdbgw s, 25% of urills 80%, AMI or �ess to iri a cle market at � and attain abt rnix. , y�� �w �", t,. I it/P/ o� wo ///q ��% ro l����'', V"'s '.rr w �9/ago r.c. , I � �� r �+. ,,�^• � M r'r ' Y U 44 Next steps... Strategies and Timelines • Need to shop • Need to develop strategies • May take time • Seek grant opportunities for infrastructure • Mill Road Lift Station install targeted in late 2025 • Develop an RFP that is viable to obtain response • Align project with construction/property management disposition services. • Grant Coordinator needed in 2024 Budget • Consider funding strategies for RFP, legal and construction management fees Questions? 11/20/23 Recommended Motion: Approve Exhibit A, the final site design for the Evans Vista Master Plan so that the Project Team can apply for subdivision entitlements. High Estimate Buildings E1 to E4 Dl, D2 A, B Cl, C2 F, G All Other (Excluding Land) Walkup Mixed -Use Mixed -Use Podium Daycare and Other Amenities Total Uses Townhouses Apartment Apartment with Apartment (indcluding community garden, Tuckunder open space, and circulation) Program Assumptions Units 16 42 107 60 94 - 319 Commercial Area (SF) - - 4,205 4,334 - 1,955 10,494 Parking Stalls 16 42 115 68 94 8 343 Building Square Foot 25,936 45,960 96,100 55,224 69,000 4,905 297,125 Studio and 1 -Bed Share 0% 57% 84% 90% 100% 0% 82% Site Size (SF) 31,783 41,481 78,036 54,704 48,646 311,014 565,663 Open Space Area (SF) 9,169 10,373 8,769 2,765 12,521 115.519 159,116 Cost Assumptions Total Development Costs $ 7.5 $ 16.4 $ 36.8 $ 22.2 $ 37.4 $ 5.9 $ 126.1 ($ million) Total Development Costs $ 467,000 $ 390,000 $ 344,000 $ 370,000 $ 397,000 $ 395,000 per Unit Total Development Costs $ 288 $ 356 $ 383 $ 402 $ 541 $ 425 per Building Square Foot Construction/Hard Costs per Building Square Foot $ 180 $ 230 $ 235 $ 235 $ 325 (excluding parking) ECOnorthwest 4/ Low Estimate Buildings E1 to E4 Dl, D2 A. B C1, C2 F, G All Other (Excluding Land) Walkup Mixed -Use Mixed -Use Podium Daycare and Other Amenities Total Uses Townhouses Apartment Apartment Apartment with (inclduding community garden, Tuckunder open space, and circulation) Program Assumptions Units 16 42 107 60 94 - 319 Commercial Area (SF) - - 4,205 4,334 - 1,955 10,494 Parking Stalls 16 42 115 68 94 8 343 Building Square Foot 25,936 45,960 96,100 55,224 69,000 4,905 297,125 Studio and 1 -Bed Share 0% 57% 84% 90% 100% 0% 82% Site Size (SF) 31,783 41,481 78,036 54,704 48,646 311,014 565,663 Open Space Area (SF) 9,169 10,373 8,769 2,765 12,521 115,519 159,116 Cost Assumptions Total Development Costs $ 7.2 $ 13.3 $ 32.0 $ 19.3 $ 34.1 $ 5.5 $ 111.4 ($ million) Total Development Costs $ 449,000 $ 318,000 $ 299,000 $ 321,000 $ 363,000 $ 349,000 per Unit Total Development Costs $ 277 $ 290 $ 333 $ 349 $ 494 $ 375 per Building Square Foot Construction/Hard Costs per Building Square Foot $ 180 $ 190 $ 210 $ 210 $ 310 (excluding parking) ECOnorthwest 48 rarking Construction Lost per 5taii Surface Parking $ 7,000 Tuckunder Parking $ 15,000 Podium Parking $ 48,000 Garage Parking $ 20,000 caner ,assumptions Vacancy Rate Residential 5% Commercial 25% Commercial Lease Rate $ 21 (NNN, per SF) Sales Commission 3% Soft Costs as % of Hard 25% Costs Contingency 5% Base Case Interest Rates Mortgage 8.00/ Capitalization Rate 5.50% Return on Cost 6.60% Construction Loan 10.00% Tax Exempt Bonds 8.00% ECOnorthwest 4a An income -restricted unit is considered affordable when household spends no more than 30% of AMI on housing costs. 2023 4 -person AMI in Port Townsend is $83,400. AMI Studio / 1 ppl 1 bedroom / 1.5 ppl 2 bedroom / 3 ppl 3 bedroom / 4.5 ppl 30% $ 17,800 $ 19,000 $ 24,900 $ 32,600 40% $ 23,700 $ 25,300 $ 31,400 $ 38,200 50% $ 29,600 $ 31,700 $ 38,000 $ 43,900 60% $ 35,000 $ 37,500 $ 45,000 $ 52,000 80% $ 47,300 $ 50,600 $ 60,800 $ 70,200 100% $ 58,400 $ 62,600 $ 75,100 $ 86,700 120% $ 70,100 $ 75,100 $ 90,100 $ 104,100 150% $ 87,600 $ 93,800 $ 112,600 $ 130,100 200% $ 116,800 $ 125,100 $ 150,100 $ 173,500 250% $ 146,000 $ 156,400 $ 187,700 $ 216,800 The income threshold is adjusted based on bedroom count and household size. For renters, housing costs include rent and utilities. Utility allowance is based on Peninsula Housing Authority figures and adjusted to 2023 dollars using in CPI -U from U.S. Bureau of Labor Statistics. For owners, housing costs include mortgage, property tax and property insurance (assumed to be 23% of housing costs), and monthly dues ($100). Affordability calculation assumes a 30 -year mortgage with 20% down payment. ECOnorthwest CITY MEETINGS SCHEDULE (This schedule is draft only, subject to change. See City website w cityofpteus) Day Date Time Type of Meeting Tentative Agenda Item Location Absent Thurs Nov 16 3:00 Public Art Committee Chambers Thurs Nov 16 5:00 Special Session Intergovernmental Port Hudson Collaborative Group Pavilion Mon Nov 20 6:00 City Council Business Meeting • Public Hearing- Preliminary 2024 Budget Chambers • Public Hearing- 2024 Revenues and Property Tax Levies Adoption • Compensation and Salary Survey Presentation • 1st reading 2023 Budget 2n1 supplemental. • Public Utility Tax and Stormwater/Sewer Rate Study Update — 1 st reading of Utility Tax Revision Ordinance • Evans Vista Final Design Selection • Capital Budget Presentation • Consent Cass Street Resolution to Set Vacation hearing (Cherry Street) Wed Nov 22 2:30 Jefferson County Housing Fund Board BOCC Thurs Nov 23 HOLIDAY -CITY OFFICES CLOSED Thurs Nov 23 6:30 Planning Commission CANCELED Chambers Fri Nov 24 HOLIDAY- CITY OFFICES CLOSED Tues Nov 28 4:30 Parks, Recreation, Trees and Trails Advisory Bd Chambers Mon Dec 4 6:00 City Council Business Meeting • Public Hearing- Budget Approval Adoption Chambers • 2nd reading 2023 Budget 2n1 supplemental • WWTP 2511 consecutive award presentation. • Annual building and development review fee increase • 2nd reading Utility Tax Revision Ordinance • Collection Development Policy Update (Library) • Tentative - Closed session: PD CBA update • Consent: Docket formal and suggested Comprehensive Plan and development regulation amendments for 2025 (for consideration during Phase 2 of the 2025 Comprehensive Plan periodic plan update in lieu of 2024 annual amendment consistent with Section 20.04.020.D PTMC). • Habitat for Humanity fee waiver • Golf course Lease Approval, Mountain View Lease Policy Recommendation Tues Dec 5 3:00 Historic Preservation Committee Chambers Wed Dec 6 3:00 Council Infrastructure and Development Comm. Chambers AH Thurs Dec 7 3:00 Arts Commission Chambers AH Mon Dec 11 6:00 Special Session City Council Business . Interlocal Agreement with EJFR for Fire Review, Fire Marshal duties (we can strive towards a 12/4 meeting if needed) Y contract. Working Image contract. Chambers Tues Dec 12 1:00 Library Advisory Board Pink House Tues Dec 12 3:00 Climate Action Committee Pacific Room Wed Dec 13 3:00 Council Culture and Society Committee Chambers AH Thurs Dec 14 4:15 Civil Service Commission Chambers Thurs Dec 14 6:30 Planning Commission Chambers Mon Dec 18 6:00 City Council Business Meeting Tentatively Canceled Chambers Wed Dec 20 3:00 Council Finance and Budget Committee Chambers Thurs Dec 21 3:00 Public Art Committee Chambers Mon Dec 25 HOLIDAY -CITY OFFICES CLOSED Tues Dec 26 HOLIDAY -CITY OFFICES CLOSED Tues Dec 26 4:30 Parks, Recreation, Trees and Trails Advisory Bd CANCELED Chambers Wed Dec 27 2:30 Jefferson County Housing Fund Board BOCC Thurs Dec 28 6:30 Planning Commission Chambers Mon Jan 1 HOLIDAY -CITY OFFICES CLOSED Tues Jan 2 6:00 City Council Business Meeting Chambers Wed Jan 3 3:00 Council Infrastructure and Development Comm. Chambers Thurs Jan 4 3:00 Arts Commission Chambers Mon Jan 8 6:00 City Council Workshop Chambers Intergovernmental Collaborative Group Update of Engineering Design Standards Jeffco.Housing Fund Bd Records Management Policies Adoption of Shoreline Master Program Update Mountain View Leases (December) Suggestion Board and Workplan Review (Jan, Apr., July, Oct.) Budget Hearings and Adoption (Nov -Dec) Council Committee Reports (April, July, October) Contract Renewals Financial Sustainability Task Force Annual Update to the City's Comprehensive Land Use Plan