FEDRAC PKT 05-25-1999City of federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, May 25,1999 City Hall
12:00 p.m. Mt, Baler Conference Room
(formerly Administration Conference Room)
AGENDA
1. CALL TO ORDER
2. PUBLIC COMMENT
3. COMMISSION COMMENT
4. COMMITTEE BUSINESS
A. Approval of April 27, 1999 Meeting Summary Action
B. Legislative Update (Derek Matheson) Information
C. Tacoma Water Franchise (Ken Miller and Pat Richardson) Action
D. TCI Service Fee Adjustment Proposal (Mehdi Sadri) Action
E. Banking Services Analysis and RFP (Betty Nielsen) Action
F. Monthly Financial Report (Marie Mosley) Action
G. Vouchers (Marie Mosley) Action
5. FUTURE AGENDA ITEMS
A. Mid -biennium budget adjustment (October) Action
B. Y2K quarterly update Information
6. NEXT MEETING: June 22, 1999 at 5:30 p.m.
Committee Members: City Staff.-
Mary
ta .Mary Gates, Chair Iwen Wang, Management Services Director
Jeanne Burbidge Sun So, Administrative Assistant
Linda Kochmar (253) 661-4080
City of Fcderal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, April 27, 1999 City Hall
5:30 p.m. Mt. Baker ConferenceRoom
MINUTES
Committee in Attendance: Chair Mary Gates, Members Linda Kochmar and Jeanne Burbidge.
Staff Members in Attendance: Iwen Wang, Management Services Director; Marie Mosley, Deputy Management
Services Director; Tho Kraus, Financial Planning Supervisor; Derek Matheson, Assistant to The City Manager; Bob
Sterbank, Deputy City Attorney; Philip Keightly, Deputy City Manager; Cary Roe, Public Works Director; Patrick
Briggs, Executive Assistant; Rob VanOrsow, Solid Waste & Recycling Coordinator.
Others in Attendance: Debra Coates, Economic Development Executive; Ernie Londino, City Council Candidate;
Jerry Hardebeck, Waste Management, Inc. and Bob Schille, Waste Management, Inc.
1. CALL TO ORDER
Chair Mary Gates called the meeting to order at 5:34 p.m.
2. PUBLIC COMMENT
None
3. COMMISSION COMMENT
None
4. COMMITTEE BUSINESS
a) Approval of March 23, 1999 meeting minutes
Motion to approve, seconded. Motion carried.
b) Legislative Update
Derek Matheson presented a legislative update to the Committee. The Legislators may roan a 30 -
day special session. The general fund operating budget is approved at $20.6 Billion, a 4%
increase over the last biennium. The transportation budget is approved at $4 Billion including Art
Commission funding of $413K for capital improvements at Knutzen Family Theatre and $50K for
Hylebos parking.
SB 8914 -Buildable Lands died but could be revived in the Special Session. SB 5289 -Salmon
Recovery Strategy, HB 2060-Rights-of-way/telecommunications and SB 5985 LEOFF II Early
Retirement are dead. HB 2177 -Card Room Applications, the Legislator is studying mini -casinos
and needs to respond to Governor Locke's suggestions of imposing moratoriums vs. new laws.
HB 1154 -EMS Funding Levy will be limited to 5 -years.
Y2K -Limitation of Liability limit to first $100 of liability, supported by AWC.
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Mary Gates recognized Derek for his work and further proposed that the Legislator's who
supported the Art Commission funding be formally acknowledged at a future City Council
Meeting.
Motion to approve, seconded. Motion carried.
C) Olympic Synchronized Swimming Trials
Debra Coates made a presentation of the upcoming event to be held June 91h — June 13`h at the
Federal Way Aquatic Center. This event will focus on physics, water safety and synchronized
swimming competitions. There will be 13 members of the Olympic Committee selected. Tickets
for the event are available at TicketMaster and Swim Clubs. It is hoped that this will give Federal
Way a presence for future events.
Additionally they are looking for a sponsor for the Sunday Community Barbecue event to be held
at Dumas Bay Center.
d) Consent to Sale of Federal Way Disposal, Inc. to USA Waste Management of WA, Inc.
Cary Roe gave a brief history of the negotiations with WMI.
The rate freeze negotiated in 1998 with Federal Way Disposal will remain in effect. There will be
expanded yard waste collection going to bi-monthly instead of monthly collections:
The Franchise agreement will end in 2001. In response to Linda Kochmar's question as to who
will take over at That time, Cary responded that the City will monitor the performance of WMI and
may go out to bid at that time. Dump fees are currently under King County control.
Jerry Hardebeck of Waste Management, Inc. offered to become involved in the sponsorship of the
Community Barbecue as a gesture of Corporate Citizenship. Additionally, he hopes to add
additional recycling events that will benefit the City.
It was suggested and Jerry Hardebeck agreed to attend the May 18' City Council meeting to
answer questions in regards to services and the contract.
Motion to approve forwarding the Amended Solid Waste and Recycling Franchise
Agreement to Council, seconded. Motion carried.
e) US West Right of Way Use Agreement
Bob Sterbank reviewed the US West Agreement with the committee. In response to Linda
Kochmar's questions regarding clarification of out clauses, Bob explained that there was several
in Section 12. Additionally, if all permit processes are not approved this could cancel the
agreement.
Motion to approve forwarding the US West Right of Way Use Agreement to Council,
seconded. Recommendation to change to May 18" Council Meeting, seconded. Motion
carried.
f) Puget Sound Air Pollution Control Assessment Increase
Iwen Wang reviewed the PSAPCA memo regarding the reasons for dues increase.
Concerns expressed by the Committee to be included in a letter to PSAPCA prior to support of the
increase were:
♦ Does the fact that both the Federal and the State have reduced their funding but at the same
time are adopting newer and tougher regulations constitute unfunded mandate?
♦ Has the Agency maximized user charges and recovered the full costs of applicable activities?
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♦ Has the Agency evaluated the fairness and/or other options of assessing the fees to local
governments to better reflect the community's contribution to the problem? (Such as using
assessed valuation or a combination of assessed valuation and population as basis of
assessment instead of pure population as allowed by the State statute.)
♦ What specific services has the Federal Way community received from the Agency? Are there
any planned or anticipated changes in the type and the level of services in the next three
years?
♦ In the event the increases are justified, the City would suggest such increases be spread into
smaller increments over a longer period.
Motion made for Finance to draft a memo relating the above concerns and forward to the
May 0 City Council meeting for review, seconded. Motion carried.
g) Capital Facilities Plan
Iwen Wang presented the draft Capital Facilities Plan. She explained that the plan has been put
together after much input from all departments and staff and is currently in the process of review
by all committees.
The plan provides the City guidance and assistance in determining funding priorities and in
determining our infrastructure investments policies. The 1998 carry -forward budget ordinance
has identified $1.1 million in General Fund and $670K in REET for capital projects due to excess
revenues and under expenditures in 1998. These funds could be allocated to projects based upon
numerous factors including priorities, matching grant funds and/or percentage allocations to
specific projects or departments.
Policies to consider include funding to be set aside on an on-going and predictable basis rather
than counting on carry -forward funding.
The draft plan will again be reviewed at the May 18`h study session and the final plan will go to
council in June.
h) Monthly Financial Report
Marie Mosley reviewed the Monthly Financial Report with the committee. Finance has
implemented some changes in this month's report in order to display information in a more user
friendly and informative format. Comments from the committee are welcome.
Motion made by Linda Kochmar to forward to May 4th Council for approval, seconded by
Jeanne Burbidge. Motion carried.
i) Voucher
Marie Mosley presented the vouchers for approval.
Motion made by Jeanne Burbidge to forward to May 4" Council for approval, seconded by
Linda Kochmar. Motion carried.
NEXT SCHEDULED MEETING
May 23, 1999 at 12:00 p.m. in the Mt. Baker Conference Room.
6. ADJOURN
Chair Mary Gates adjourned the meeting at 7:30 p.m.
Recorded by Enola Christian
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CITY OF FEDERAL WAY
MEMORANDUM
Date: May 25, 1999
To: Finance, Economic Development and Regional Affairs Committee
From: Ken Miller, Deputy Director of Public Work
Pat Richardson, Assistant City Attorney Ps
Subject: Franchise with the City of Tacoma Department of Public Utilities, Water Division
Background:
Te City of Tacoma, Department of Public Utilities, Water Division, proposed constructing the
Second Supply Project to provide municipal water to the City of Tacoma, South King County, and the City
of Federal Way. The Project is approximately 33 miles long, sized to transmit water for which Tacoma has
established water rights, extending westward from the headworks of the Green River, near the City of
Enumclaw and Howard Hanson Dam, through the cities of Black Diamond, Auburn and Federal Way,
terminating at the Portland Avenue Reservoir in Tacoma.
Federal Way is responsible for the permitting and approval of the Second Supply Project. Federal
Way, in consultation with Tacoma, developed a Comprehensive Mitigation Plan, which includes detailed
construction mitigation requirements forthe Project. The Comprehensive MitigationPlan satisfies the SEPA
requirements.
On April 4,1995, the Federal Way City Council, at its regular meeting, approved the Comprehensive
Mitigation Plan. Section II(7)(h) requires Tacoma to enter into a franchise with Federal Way before the
issuance of any construction permits.
Early this year Tacoma bid and awarded the contract for the phase of the construction of the Project
within Federal Way. It is anticipated that the contractor will commence work in early July, 1999, provided
that the franchise is authorized by Federal Way City Council and accepted by Tacoma.
The franchise has a term of ten (10) years; a delineation of the specific areas for the water services,
which includes the BPA corridor; a standard of performance for work performed; and an indemnification
provision and insurance provision. The terms are basically consistent with other franchises that the City
Council has authorized. The Law Department has reviewed and approved the franchise.
Committee Recommendation: �.
y� J
Approve the proposed franchisg,with the City of Tacoma, Department of Public Utilities, Water
Division and forward to the full City Council meeting on June 1, 1999, for first reading.
APPROVAL BY COMMITTEE:
Committee Chair Committee Member Committee Member
/17 /
ORDINANCE NO. 99 -
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
FEDERAL WAY, WASHINGTON, GRANTING CITY OF TACOMA
DEPARTMENT OF PUBLIC UTILITIES , WATER DIVISION, A
MUNICIPAL CORPORATION AND PUBLIC UTILITY SELLING AND
DISTRIBUTING WATER WITHIN KING COUNTY, A NONEXCLUSIVE
FRANCHISE TO OCCUPY THE RIGHTS-OF-WAY OF THE CITY OF
FEDERAL WAY, WASHINGTON, THROUGH THE FRANCHISE AREA
FOR THE PURPOSES OF CONSTRUCTING, MAINTAINING,
REPAIRING, RENEWING AND OPERATING A WATER
DISTRIBUTION AND TRANSMISSION SYSTEM AND ACCESSORIES
WITHIN AND THROUGH THE CITY OF FEDERAL WAY.
WHEREAS, the City Council of Federal Way finds that it is in the public interest
to specify the rights and duties of the water utility through a franchise; and
WHEREAS, in exercising said authority pursuant to RCW 35A.47.040 relating to
franchises and permits, the City of Federal Way reserves such other powers and authorities held
by Washington code cities; now therefore,
THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DOES
HEREBY ORDAIN AS FOLLOWS:
Section 1. Definitions
Where used in this Franchise the following terms shall be defined as follows:
1.1 "City" means the City of Federal Way, Washington, a municipal corporation of
the State of Washington, and its respective successors and assigns.
1.2 "Council" means the City of Federal Way Council acting in its official capacity.
1.3 "Director" means the Public Works Director, or designee, of the City of Federal
ORD # 99- , PAGE 1
Rev. 5/18/99
n .,
Way Public Works Department.
1.4 "Facilities" means water pipes, and mains and appurtenances and accessories
necessary for the transmission and distribution of water within the City of Federal Way.
1.5 "FWCC" means the Federal Way City Code.
1.6 "Franchise Area" means rights-of-way for public roads, streets, avenues, alleys,
highways, and the BPA corridor of the City as set forth in Exhibit A. The Franchisee shall place
Facilities on the right-of-way in the Franchise Area, but not on any other public property owned,
in whole or in part, leased, or otherwise occupied by the City.
1.7 "Franchisee" means Tacoma Public Utilities, a municipal corporation, and public
utility, and its respective successors and assigns.
Section 2. Grant/Acceptance
2.1 Grant of Franchise. The City does hereby grant to Franchisee, subject to the terms
of this Franchise, the right, privilege, authority and franchise to:
(a) Lay, construct, extend, repair, renew, and replace Facilities in the
Franchise Area; and
(b) To charge and collect tolls, rates and compensation for such water service
and such uses.
2.2 Acceptance by Franchisee. Franchisee shall have no rights under this Franchise,
nor shall Franchisee be bound by the terms and conditions of this Franchise, unless Franchisee
shall, within sixty (60) days after the effective date of this Franchise, file with the City its written
acceptance of this Franchise and all of its terms and conditions.
ORD # 99- , PAGE 2
Rev. 5/18/99
c -S
Section 3. Non -Franchise Area City Property
This Franchise does not and shall not convey any right to Franchisee to install its
Facilities on, under, over, across, or to otherwise use City -owned or leased properties of any kind
outside the Franchise Area, or to install Facilities on, under, over, across or otherwise use any
City owned or leased property within the Franchise Area other than public roads, streets,
avenues, alleys and highways.
Section 4. Term
Subject to Franchisee filing its acceptance pursuant to Subsection 2.2, the term of this
Franchise shall be for a period of ten (10) years commencing on the effective date of this
Franchise, unless terminated earlier pursuant to the terms of this Franchise or other applicable
law.
Section 5. Location of Facilities
5.1 Location. The location of existing water pipes, laterals, and appurtenances, their
depths below surface of ground or grade of a right-of-way (if available), shall be submitted to the
City in the form of a map(s) showing the approximate location of Franchisee's existing water
system within the Franchise Area. Upon written request of the City, Franchisee shall update
such map to reflect actual or anticipated improvements to the system. Any such map (or update
thereof) so submitted shall be for informational purposes only and shall not obligate Franchisee
to undertake any specific improvements, nor shall such map be construed as a proposal to
undertake any specific improvements.
ORD # 99- , PAGE 3
Rev. 5/18/99
C14
5.2 GIS Data. The Franchisee. shall provide, at such time as Franchisee develops and
employs, Geographic Information System ("GIS") technology for its water utility maps and
records throughout its service area and has such information available in digital GIS format for
its Facilities within the Franchise Area.
5.3 Design Markings. In the event the City desires to design new streets or
intersections, renovate existing streets, or make any other public improvements, Franchisee shall
at the City's reasonable request, provide the location of Franchisee's underground Facilities
within the Franchise Area by either field markings or by locating the Facilities on the City's
design drawings, and shall provide all other reasonable cooperation and assistance to the City.
5.5 No Warranty or Waiver. Nothing herein is intended to relieve the parties of their
respective obligations arising under Chapter 19.122 RCW or other applicable law with respect to
determining the location of utility facilities prior to construction. Further, neither the provisions
of this Franchise nor the absence of any specific provision in this Franchise is intended to limit,
detract from or render ineffective any disclaimer (including, without limitation, any disclaimer as
to accuracy or completeness) placed by Franchisee on any map furnished to the City pursuant to
Section 5.2 of this Franchise.
Section 6. Noninterference of Facilities
Franchisee agrees to maintain its Facilities and perform all work within the Franchise
Area: (1) so as not to unreasonably interfere with the free passage of traffic, (2) in accordance
with the laws of the State of Washington and City ordinances, regulations resolutions and rules,
and (3) as required by the Director.
ORD # 99- , PAGE 4
Rev. 5/18/99
n
Section 7. Requirement to Obtain Permits
Franchisee shall, at its expense, obtain all permits, (including rights-of-way permits), and
pay all permit fees required by applicable City ordinances, regulations, resolutions and rules
prior to commencing any work within the Franchise Area. Franchisee permit applications shall
show the position and location of the mains, laterals, and extensions to be constructed, laid,
installed, or erected at that time, show their relative position to existing rights-of-way or property
lines upon prints drawn to scale, designate rights-of-way by their names and improvements, such
as, but not limited to, sidewalks, curbs, gutters, shoulders of roadway, ditches, paved roadways,
roadways to property lines, turnouts, parking strips, telephone or electric distribution poles, and
water pipes existing on the ground to be occupied, or as required by the Director. The Franchisee
shall specify the class and type of materials to be used, equipment to be used, and mode of
safeguarding and facilitating the public traffic during construction. Materials and equipment
shall be in new or like -new condition for its type and kind. The manner of excavation,
construction, installation, backfill, and temporary structures such as, but not limited to, traffic
turnouts and road obstructions shall meet the standards of the FWCC and be satisfactory to the
Director. All traffic control shall be in accordance with the right-of-way permit, and shall be in
accordance with the Manual on Uniform Traffic Control Devices (MUTCD). The Franchisee
shall indicate on the right-of-way use permit application the time needed to complete the work.
The time needed to complete the work is subject to approval by the City as a condition of the
issuance of the right-of-way permit.
In the event of an emergency in which Franchisee's Facilities within the Franchise Area
are in a condition as to immediately endanger the property, life, health or safety of any
individual, Franchisee may take action immediately to correct the dangerous condition without
ORD # 99- , PAGE 5
Rev. 5/18/99
first obtaining any required permit so long as such permit is obtained by Franchisee as soon as
practicable thereafter.
Section 8. Standard of Performance
The Franchisee shall not excavate for a distance of more than one hundred feet (100)
without immediately backfilling and compacting to surface grade and permit requirements.
Backfilled trench areas within a driving lane must be patched, either temporarily or permanently,
before the end of the workday in which they have been opened. Trench areas within the right-of-
way, but not in a driving lane must also be patched within the time limits specified by the City on
the right-of-way use permit. Final surface restoration shall be completed within thirty (30) days
and shall be equal to or better than the surface condition prior to permit issuance.
Any street asphalt overlay within five (5) years of the date of a permit application, shall
not be open cut by the Franchisee unless in an emergency. Streets that are open cut will require
asphalt overlay for approximately one (1) blocks in length or as determined by the Director.
Franchisee shall, in carrying out any authorized activities within the Franchise Area,
comply with all applicable laws, ordinances, codes and standards, as now existing or hereafter
adopted or amended, and shall comply with the terms of this Franchise, whether or not the work
is performed by the Franchisee, its agents, employees, subcontractors, or other third parties at
Franchisee's direction. Upon completion of any water main installation of Franchisee's Facilities
within the Franchise Area, the "as -built" location of the Facilities shall be within two (2) feet of
the location of the Facilities shown in the plans submitted by Franchisee to the City's Public
Works Department or closer if required by State law. Nothing herein is intended to relieve the
parties of their respective obligations arising under applicable law with respect to determining
the location of utility facilities.
ORD # 99- , PAGE 6
Rev. 5/18/99
Section 9. Survey Markers and Monuments
Franchisee shall, using a licensed surveyor, immediately replace all markers or
monuments disturbed during any work by Franchisee within the Franchise Area. Franchisee shall
pay all costs associated with such lost, destroyed or disturbed monuments or markers.
Section 10. Surface Markings/Stakes
Prior to Franchisee commencing any excavation work within the Franchise Area,
Franchisee shall reference all monuments and markers relating to subdivisions, plats, highway,
and other surveys. The reference points shall be located so that they shall not be disturbed during
the Franchisee's operations under this franchise. The method referencing these monuments or
other points shall be approved by the City before placement. The construction shall be made as
expeditiously as conditions permit, and as directed by the City. The cost of monuments or other
markers lost, destroyed, or disturbed, and the expense of replacement of the monuments, shall be
borne solely by the Franchisee. A complete set of reference notes for monuments and other ties
shall be filed with the City. In the event of any conflict or inconsistency between this Section 10
and Chapter 19.122 RCW, as now existing or hereafter amended, Chapter 19.122 RCW will
control.
Section 11. Notification to fire district
If it is necessary to shut down or diminish the water pressure so that fire hydrants may be
affected, the Franchisee shall notify the appropriate fire district by telephone followed by faxed
transmittal or written notification, that water pressure or fire flow conditions have been affected.
In case of a planned shutdown or diminished water flow, at least forty-eight (48) hour prior
notification to the fire district is required. If more than one fire hydrant is affected, Franchisee
must provide a map of the affected area to the appropriate fire district.
ORD # 99- , PAGE 7
Rev. 5/18/99
(J
Section 12. Right of City to Undertake Maintenance Work
The laying, construction, maintenance, and operation of Franchisee's system of water
pipe, laterals and appurtenances granted under this franchise shall not preclude the City, its
accredited agents or its contractors from doing necessary maintenance work contiguous to the
Facilities, provided that the Franchisee shall have sufficient notice of blasting or excavating in
order that Franchisee may protect its lines or pipe or property.
Section 13. Right of City to Complete Work
In the event Franchisee fails to comply with any applicable federal, state or City laws,
ordinances, rules, regulations or standards or with any of the terms of this Franchise, and such
noncompliance continues for a period of ten (10) days after Franchisee receives written notice
from the City regarding the noncompliance, the City may, but in no event is the City obligated
to, order any work completed, including without limitation Franchisee's obligation to repair
pursuant to Section 8 herein and Franchisee's obligation to remove Facilities pursuant to Section
14 herein. If the City causes such work to be done by its own employees or by any person or
entity other than Franchisee, Franchisee shall, upon the City's written request, immediately
reimburse the City for all reasonable costs and expenses incurred by the City in having such
work performed, which costs may include the City's reasonable overhead expenses and attorneys
fees. However, the City shall not have any plumbing work accomplished by any person or entity
other than Franchisee or a qualified and licensed plumbing contractor.
Section 14. Notice to Franchisee of Work by City
14.1 City Reservation of Rights. The City reserves the right to use, occupy and enjoy
the Franchise Area for any purpose that is not inconsistent with the terms and conditions of this
Franchise. . The rights reserved herein include, without limitation, the construction of any
ORD # 99- , PAGE 8
Rev. 5/18/99
C q
electrical, water, sewer or storm drainage line, installation of traffic signals, street lights, trees,
landscaping, bicycle paths and lanes, equestrian trails, sidewalks, other pedestrian amenities, and
other public street improvement projects.
This Franchise is not an exclusive franchise. Without limiting Franchisee's rights under
this Franchise, this Franchise shall not in any manner prohibit the City from granting other and
further franchises in, under, over, upon, and along the Franchise Area.
14.2 City's Duties. In the event the City undertakes any work, including necessary
maintenance within a right-of-way in which Franchisee's Facilities are located, and such work
necessitates the relocation of Franchisee's then existing Facilities within the Franchise Area, the
City shall:
(a) Provide written notice to Franchisee requesting such relocation within a
reasonable time prior to the commencement of such City work; and
(b) Provide Franchisee with copies of pertinent portions of the City's plans
and specifications for such City work so that Franchisee may relocate its Facilities to
accommodate such City work.
14.3 Franchisee's Duties. After receipt of the City notice requesting the relocation of
the Facilities pursuant to Subsection 14.2(a) and receipt of the plans and specifications pursuant
to Subsection 14.2(b), Franchisee shall, within thirty (30) days of notification, or such time as
approved by the Director, raise, lower, or move such Facilities within the Franchise Area at its
sole cost and expense so as to conform to such new grades as may be established, and place the
pipe in a location or position causing the least interference with the improvement, repair, or
alteration contemplated by the City. If the City improves a right-of-way, Franchisee shall, at its
sole cost and expense, upon receipt of notice, replace the pipe or pipes located in the improved
ORD # 99- , PAGE 9
Rev. 5/18/99
L ,o
subgrade of the improvement with pipe or pipes conforming to the specifications for the
improvement of the right-of-way.
14.4 Exclusivity. This Section 14 shall govern all relocations of Franchisee's Facilities
required in accordance with this Franchise. Nothing in this Section 14 shall require Franchisee to
bear any cost or expense in connection with the location or relocation of any Facilities existing
under benefit of easement on property owned by a person or entity other than the City.
Section 15. Damage Repair
In case of damage by the Franchisee or by the Facilities of the Franchisee to rights-of-
way, or to public and private improvements to rights-of-way, the Franchisee agrees to repair the
damage at its own cost and expense. The Franchisee shall, upon discovery of any such- damage,
immediately notify the City. The City will inspect the damage, and set a time limit for
completion of the repair. If the City discovers damage caused by the Franchisee to rights-of-
way, or to public and private improvements to rights-of-way, the City shall give the Franchisee
notice of the damage and set a time limit in which the Franchisee must repair the damage. In the
event the Franchisee does not repair a right-of-way or an improvement to a right-of-way as
required in this section, the City may repair the damage pursuant to Section 13 of this
Agreement.
Section 16. Default
16.1 Notice of Default. If Franchisee shall fail to comply with any of the provisions of
this Franchise, the City may serve a written notice to Franchisee ordering such compliance and
Franchisee shall have sixty (60) days from the receipt of such notice in which to comply.
ORD # 99- , PAGE 10
Rev. 5/18/99
0 11
16.2 Revocation of Franchise. If Franchisee is not in compliance with this Franchise
after the expiration of the sixty (60) day period, the City may, by ordinance, declare an
immediate forfeiture of this Franchise.
Section 17. Limited Rights
This Franchise is intended to convey only a limited right and interest to Franchisee in the
Franchise Area. This Franchise is not a warranty of title or conveyance of any ownership interest
in or to the Franchise Area to Franchisee.
Section 18. Eminent Domain
The existence of this Franchise shall not preclude the City from acquiring by
condemnation, in accordance with applicable law, all or a portion of Franchisee's Facilities
within the Franchise Area for the fair market value thereof. In determining the value of such
Facilities, no value shall be attributed to the right to occupy the Franchise Area conferred by this
Franchise.
Section 19. Vacation
If at any time the City, by ordinance, vacates all or any portion of public streets, roads
and/or rights-of-way within the Franchise Area, the City will not be liable for any damages or
loss to the Franchisee by reason of such vacation. The City agrees to exert reasonable good daith
efforts to reserve an easement for Franchisee's lines and Facilities when a street, public way , or
area is vacated. The City may, after thirty (30) days written notice to Franchisee, terminate this
Franchise with respect to any such vacated area.
Section 20. Compliance with Laws
Franchisee shall comply with all applicable federal, state and City laws, ordinances,
resolutions, regulations, standards and procedures, as now existing or hereafter amended or
ORD # 99- , PAGE 11
Rev. 5/18/99
i '�
adopted, including without limitation the State Environmental Protection Act, the Federal
Occupational Safety and Health Act of 1970 (OSHA), and the Washington Safety and Health Act
of 1973 (WISHA); provided, however, that if any term or condition of this Franchise and any
term or condition of any City law, code, ordinance, resolution, regulation, standard, procedure,
permit or approval are in conflict, the term or condition of this Franchise will control.
Section 21. Guarantee
Franchisee shall guarantee work completed by the Franchisee under this franchise for a
period of twenty (20) years against settlement or repair.
Section 22. Charge for Administrative Costs
Franchisee agrees to pay a fee or charge to recover the actual reasonable administrative
expenses incurred by the City which are directly related to preparing and approving this
Franchise. Nothing herein shall preclude the City from recovering any administrative costs
incurred by the City in the approval of permits or in the supervision, inspection or examination of
all work by Franchisee in the Franchise Area as prescribed in accordance with applicable
provisions of the Federal Way City Code.
Section 23. Indemnification
Franchisee agrees to indemnify and hold harmless and defend the City, its elected
officials, officers, employees, agents, and volunteers from any and all claims, demands, losses,
actions and liabilities (including costs and all attorney fees) to or by any and all persons or
entities, including, without limitation, their respective agents, licensees, or representatives,
arising from, resulting from, or connected with this Franchise to the extent caused in part or in
whole by the acts, errors or omissions of the Franchisee, its officers, partners, shareholders,
agents, employees, or by the Franchisee's breach of any provisions of this Franchise; provided,
ORD # 99- , PAGE 12
Rev. 5/18/99
C,, 1.)
however, that this section shall not be construed as requiring Franchisee to indemnify, hold
harmless or defend the City against claims or damages arising from the negligence of the City, its
agents or employees. In the event any claim, demand, suit or action is commenced against the
City which gives rise to Franchisee's obligation pursuant to this Section 23, the City shall
promptly notify Franchisee thereof, and Franchisee shall use attorneys selected by the City.
Franchisee shall not settle or compromise any such suit or action except with prior written
consent of the City, which shall not be unreasonably withheld. The City shall have the right at
all times to participate through its own attorney in any suit or action which arises pursuant to this
Franchise when the City determines that such participation is required to protect the interest of
the City or the public. In the event it is determined that RCW 4.24.115 applies to this Franchise,
Franchisee agrees to defend, hold harmless and indemnify the City to the Maximum extent
permitted thereunder, to the full extent of Franchisee's negligence.
Section 24. Insurance
24.1 Minimum Limits. The Franchisee agrees to carry as a minimum, the following
insurance, in such forms and with such carriers as are satisfactory to the City.
(a) Workers compensation and employer's liability insurance in amounts
sufficient pursuant to the laws of the State of Washington;
(b) Commercial general liability insurance with combined single limits of
liability not less than $$`,000,000 for bodily injury, including personal injury or death,
products liability, contractual coverage, operations, explosion, collapse, underground and
property damage; and
ORD # 99- , PAGE 13
Rev. 5/18/99
L H
(c) Automobile liability insurance with combined single limits of liability not
less than $2;000,000 for bodily injury, including personal injury or death and property
damage.
24.2 Mandatory Insurance Provisions. The comprehensive general liability insurance
and automobile liability insurance policies shall be endorsed to contain the following provisions:
(a) The City, its officers, elected officials, employees, and volunteers are to be
named as additional insured;
(b) Coverage shall apply separately to each insured against whom claim is
made or suit is brought, except with respect to the limits of the insurer's liability;
(c) Coverage shall not be suspended, canceled, modified or reduced except
after thirty (30) days prior written notice to the City delivered by certified mail, return
receipt requested; and
(d) Coverage shall be primary as to the City, its officers, officials, employees
and volunteers. Any insurance or self-insurance by the City, its officers, officials,
employees or volunteers shall be in excess of Franchisee's required insurance.
24.3 Verification of Coverage. Franchisee shall furnish the City with certificates of
insurance and original endorsements evidencing the coverage required by this Section. The
certificates and endorsements shall be signed by a person authorized by the insurer to bind
coverage on its behalf and must be received and approved by the City prior to the
commencement of any work. At the City's request, Franchisee shall deliver certified copies of all
required insurance policies.
24.4 Self -Insurance. In satisfying the insurance requirements set forth in this Section,
Franchisee may self -insure against such risks in such amounts as are consistent with good utility
ORD # 99- , PAGE 14
Rev. 5/18/99
cis
practices. Franchisee shall provide the City with sufficient written evidence, upon request, that
such insurance (or self-insurance) is being so maintained by Franchisee. Such written evidence
shall include, to the extent available from Franchisee's insurance carrier, a written certificate of
insurance with respect to any insurance maintained by Franchisee in compliance with this
Section.
Section 25. Franchise Fees
If, during the term of the Franchise, the Washington State Legislature authorizes the City
to impose a franchise fee or other charge upon the sale of water, the City shall have the right, at
its discretion, to impose such a fee or charge within the legal limits prescribed by the authorizing
legislation.
Section 26. General Provisions
26.1 Entire Agreement. This Franchise contains all of the agreements of the Parties
with respect to any matter covered or mentioned in this Franchise and no prior agreements or
understandings pertaining to any such matters shall be effective for any purpose.
26.2 Modification. No provision of this Franchise may be amended or added to except
by agreement in writing signed by both of the Parties.
26.3 Assi nment. Franchisee shall not have the right to transfer or assign, in whole or
in part, any or all of its obligations and rights hereunder without the prior written consent of the
City. Any assignee shall, within thirty (30) days of the date of any approved assignment, file
written notice of the assignment with the City together with its written acceptance of all terms
and conditions of this Franchise. Notwithstanding the foregoing, Franchisee shall have the right,
without such notice or such written contest, to mortgage its rights, benefits and privileges in and
under this Franchise to the Trustee for its bondholders.
ORD # 99- , PAGE 15
Rev. 5/18/99
C, 1(40
26.4 Attorney Fees. In the event the City or the Franchisee defaults on the performance
of any terms in this Franchise, and the Franchisee or the City places the enforcement of the
Franchise or any part thereof or the collection of any monies due, or to become due hereunder, in
the hands of an attorney, or files suit upon the same, the prevailing party shall be entitled to an
award of all reasonable attorneys' fees, costs and expenses. The venue for any dispute related to
this Franchise shall be King County, Washington.
26.5 No Waiver. Failure of either party to declare any breach or default by the other
party immediately upon the occurrence thereof, or delay in taking any action in connection
therewith, shall not waive such breach or default, but such party shall have the right to declare
any such breach or default at any time. Failure of either party to declare one breach or default
does not act as a waiver of such party's right to declare another breach or default.
26.6 Governing Law. This Franchise shall be made in and shall be governed by and
interpreted in accordance with the laws of the State of Washington.
26.7 Authori . Each individual executing this Franchise on behalf of the City and
Franchisee represents and warrants that such individual is duly authorized to execute and deliver
this Franchise on behalf of the Franchisee or the City.
26.8 Notices. Any notices required to be given by the City to Franchisee or by
Franchisee to the City shall be delivered to the parties at the following addresses:
Franchisee:
Tacoma Public Utilities
P.O. Box 11007
Tacoma, WA 98411-0007
ORD # 99- , PAGE 16
Rev. 5/18/99
City:
City of Federal Way
Attn: City Attorney
33530 1st Way South
Federal Way, WA 98003-6210
C I- l
Any notices may be delivered personally to the addressee of the notice or may be deposited in
the United States mail, postage prepaid, to the address set forth herein. Any notice so posted in
the United States mail shall be deemed received three (3) days after the date of mailing.
26.9 Captions. The respective captions of the sections of this Franchise are inserted for
convenience of reference only and shall not be deemed to modify or otherwise affect in any
respect any of the provisions of this Franchise.
26.10 Remedies Cumulative. Any remedies provided for under the terms of this
Franchise are not intended to be exclusive but shall be cumulative with all other remedies
available to the City at law, in equity or by statute.
Section 27. Severability
If any section, sentence, clause, or phrase of this Ordinance should be held to be invalid
or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality
shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of
this Ordinance.
Section 28. Ratification
Any act consistent with the authority and prior to the effective date of this Ordinance is
hereby ratified and affirmed.
Section 29. Effective Date
This Ordinance shall take effect and be in full force five (5) days after its passage,
approval and publication, according to law.
ORD # 99- , PAGE 17
Rev. 5/18/99
0- 1�
PASSED by the City Council of the City of Federal Way this day of
'1999.
CITY OF FEDERAL WAY
ORD # 99- , PAGE 18
Rev. 5/18/99
MAYOR, RONALD L. GINTZ
ATTEST:
CITY CLERK, N. CHRISTINE GREEN
APPROVED AS TO FORM:
CITY ATTORNEY, LONDI K. LINDELL
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
KAORDDATACWATER.FRN
c'
ACCEPTANCE:
The undersigned hereby accepts all the rights and privileges of the above granted
Franchise and acknowledges that such rights and privileges are subject to and limited by all of
the terms, conditions and obligations contained therein.
Dated this day of , 1999.
TACOMA PUBLIC UTILITIES
IM
Its:
ORD # 99- , PAGE 19
Rev. 5/18/99
C �v
CITY OF FEDERAL WAY
MEMORANDUM
Date: May 21, 1999
To: Finance, Economic Development and Regional Affairs Committee
From: Mehdi Sadri, Information Systems Manager
Subject: Cable Rate Changes under Review
On March 1, 1999, TCI submitted their annual filing of proposed rate adjustments for basic cable services
and certain equipment and installation charges to be effective June 1, 1999. Attached are the analysis
prepared by 3H Cable Communication Consultants providing more information on their review of these
proposals, and their conclusions that the proposed changes conform with FCC regulations and are
accurately executed.
The proposed rates for basic cable services are: $12.20/month for those residents living in the area north -
of 288th -- an increase 18 cents per month or 1.5%; and $12.28/month for the area south of 288`h -- no
increase. Part of the reason for the small or no increase is that TCI is trying to bring more consistency to
their rate structures within the same system. We believe this would also bring the City's two different
rates into one in the near future.
TCI has been using company -wide costs in calculating equipment and installation charges since 1997.
This practice makes the audit of the underlying data very difficult if not impossible. The proposed
installation rates decreased slightly due to the exclusion of certain items from their past calculation that
are legal but susceptible to challenge. The equipment rates remained flat except for the increase in digital
cable equipment due to the Company's large purchases of digital assets in 1998.
As a part of the public input process, the City has solicited comments of the proposed changes through
local newspaper advertisements. Three responses were received to date. One from an apartment dweller
that has private cable service who wishes to have TCI service; second complaint is in regards to TCI rate
increase beyond the basic cable service; and the third complaint is from a senior citizen who expressed
concern of the affordability of cable services. Unfortunately, the City does not have jurisdiction over the
first two complaints. The City's current franchise contains 30% senior discount, which is either equal to
or higher than most surrounding jurisdictions. The City's authority to review rates is limited to only the
basic cable services equipment and installation and then only within the guidelines established by the
FCC.
Attachments: 1. TCI of Auburn Rate Analysis (N. of 288'
2. TCI of Tacoma Rate Analysis (S. of 288'h)
FEDRAC Committee Action:
No Council action is required. The proposed rates will go into effect on June 1, 1999 without Council action.
The City will be able to appeal the rates anytime in the future and, if justified, TCI will be required to refund
such over charges.
APPROVAL OF COMMITTEE ACTION:
Committee Chair Committee Member Committee Member
K:\FINANCE\ * 00CU MENT2
DI /
CITY OF FEDERAL WAY (F5218B) 1999 CABLE TELEVISION RATE REVIEW
I. Overview
TCI Northwest, Inc. has submitted its mandated Federal Communications Commission
(FCC) rate filing forms to the Ciiy of Federal Way. The March 1, 1999 filings initiated
the 90 -day comment and appeal period during which regulating cable television franchises
may review the forms before new rates take effect on or after June 1, 1999.
The filing of these annual regulatory forms consist of the cable television operator's
justification for any rate and fee changes for the upcoming year. The forms exhibit the
calculation methodology and assumptions used to compute the annual rate adjustment.
3H Cable Communications Consultants has reviewed TCI's filing to the City of Federal
Way to evaluate the proposed changes. The scope of this review included the following
general tasks:
• Verification of the accuracy of the calculations applied by TCI.
• Reference to the source of key statistics used in the calculation of the
Maximum Permitted Rate computed, and thus, the operator's recommended
rate for customers within the franchise's jurisdiction.
• Identification of the components that drive the proposed rate adjustments.
The annual filings for local franchises have changed from previous years due to notable
issues surfacing in the cable television industry, namely, the upgrade of local networks to
new technology providing different service and programming options to subscribers. This
year, up to three forms are being submitted to franchises from TCI:
• Form 1205. This form exhibits the calculation of equipment and installation
charges which are based on a sampling of TCI's company -wide costs. Such
costs are associated with customer equipment maintenance and installation
costs and the related labor costs supporting those activities.
• Form 1235. New for the local area in 1999, this form calculates the
component to be added to cable television rates to accommodate for TCI's
costs from significantly upgrading systems to provide added benefits to
subscribers. This form does not apply in all franchises depending on the type
of existing service provided to subscribers in those areas.
Form 1240. This form calculates the maximum permitted rate for Tier 1, or
Basic Cable, services. The maximum permitted rate is based on the prior
year's base rate plus any adjustments for inflation, any retroactive
adjustments made to compensate either the subscriber or the operator for
variances between estimated and actual revenues generated by the prior year's
rate, and any explicit changes in costs such as programming fees and channel
additions. In 1999, where applicable, the maximum permitted rate is added to
a one-time adjustment for Form 1235 system upgrade costs. It is important to
recognize that the calculation of the allowable rate under Form 1240 may be
adjusted downward if it is determined that the previous period's rate was too
high.
JPAGE 1
TC I - AV bGUI l�
CITY OF FEDERAL WAY (F5218B) 1999 CABLE TELEVISION RATE REVIEW
An integral part of reviewing these filings is meeting with regulatory authorities at TCI to
discuss ehanges in the filing format from previous years and current procedures. We met
with Marie Fulghum, Director of Regulatory Affairs for TCI Northwest, Inc., who
provided detailed insight into the preparation of the forms, TCI's reasoning behind certain
decisions made in the course of producing the filings for each franchise, and key issues
central to the findings in each of the forms. Topics relevant to the results of these filings
that were discussed by Ms. Fulghum will be included in the appropriate sections in Part
II below.
H. Findings
A. Equipment and Installation Charges — FCC Form 1205
Company -wide costs are used in calculating TCI's proposed equipment and installation
charges. As in previous years and under Section 76.924 of Commission rules, the FCC
allows TCI to utilize independent sampling of franchise cost structures as the basis for
company -wide equipment and installation charges. This method of estimating costs in
aggregate results in all of TCI's subscribers paying equal amounts for equipment and
installation activities rather than implementing franchise -specific charges.
Cost -averaging allows TCI to phase in new cable technology without causing erratic
spikes in subscriber fees. As with any charge based on a sampling and aggregation of
costs, franchises with lower than average actual costs will, in effect, subsidize franchises
with higher than average costs.. While the method may produce local inequities, it is
allowed by FCC regulatory rules; to challenge this practice, a franchise must make a
formal appeal directly to the FCC.
The underlying calculation of Form 1205 is difficult to audit due to the aggregation of
company -wide costs. To effectively verify the accuracy of TCI's calculations may be
more time-consuming and costly than is realistically beneficial to a franchise. To cross-
check the application of Form 1205 to the City of Federal Way, we have verified with
eight other local King County franchises' rate filings that their proposed equipment and
installation charges are indeed equal to those submitted to Federal Way.
On a general basis, TCI has noted that all calculated installation rates have decreased for
1999. This reduction is due to the intentional omission of designated service cost
components. TCI has chosen to exclude certain items to avoid costly legal debate over
definitions and inclusions of components in the calculation. While TCI does believe that
previous filings have been correct, this decision is driven by a need to avoid long appeals
over charges that are actually not used in customer marketing. In practice, TCI
consistently discounts installation rates for promotion purposes; rarely are the calculated
rates shown on Form 1205 used.
In 1999, all equipment rates in the local area have increased due to TCI's large purchases
of digital assets (e.g., boxes and remotes) in 1998. These equipment charges are paid for
through charges paid by subscribers choosing to have digital service and not by basic cable
subscribers in their regulated monthly service rates.
3 PAGE 2
TCI- A-46ovA
CITY OF FEDERAL WAY (H5 18B) 1999 CABLE TELEVISION RATE REVIEW
Table 1 exhibits the maximum permitted equipment and installation charges calculated only
Form 1205 as compared to the operator -selected rates to be effective June 1, 1999.
Table 1. Equipment and Installation Charges
Type of Service
Current
Rate
Maximum Operator
Permitted Selected
Rate Rate
Hourly Service Charge
$32.00
$27.93 $27.00
Install -Unwired Home
$46.95
$41.38 $39.95
Install Prewired Home
$24.95
$22.37 $21.50
Install Additional Outlet - Connect Initial
$13.95
$14.68 $13.95
Install Additional Outlet - Connect Separate
$21.95
$21.08 $18.95
Other Install - Relocate Outlet
$21.95
$20.82 $18.95
Other Install - Upgrade (non -addressable)
$13.95
$33.04 $13.95
Other Install - Downgrade (non -addressable
$8.95
$9.48 $8.95``
Other Install - Upgrade/Downgrade (addressable)
$1.99
$1.99 $1.99
Connect VCR - Connect Initial
$6.95
$6.83 $5.95
Connect VCR - Connect Separate
$13.95
$13.82 $12.95
Remote Control (All Units)
$0.30
$0.41 $0.35
Converter Box (Basic Service Only)
$1.60
$3.56 $1.60
Converter Box (All Others)
$3.25
$4.55 $3.50
Other
N/A
N/A N/A
B. Network Upgrade Cost Increment - Form 1235
As described by the FCC, Form 1235, new for 1999 filings in the local area, permits cable
television operators "to recover the costs of significant upgrades that provide benefits to
subscribers of regulated cable services." Under Form 1235 guidelines, a cable operator
may only increase rates due to an upgrade if
• The upgrade requires significant added capital investment on the part of.the
operator,
• The upgrade benefits subscribers directly through improvements in the
regulated services they receive that are affected by rate increases caused by
such improvements, and
• The rate increase is not charged to subscribers until the upgrade takes effect
and provides tangible benefits to the regulated service subscribers.
In Form 1235, cable operators must demonstrate a net increase in their costs due to
upgrading the system. They must also exhibit that their allocation of costs are made only
to the customers receiving the benefits and that those costs are only those applicable to
subscribers of regulated services. In short, subscribers only pay for services that benefit
them, when they receive them, and only for the amount in which it actually costs to
receive such benefits.
J J, PAGE 3
TGj- A-Khu,,ti
CITY OF FEDERAL WAY (175218B) 1999 CABLE TELEVISION RATE REVIEW
In areas where Form 1235 ' has been submitted, TCI has issued two Form 1240 Basic
Cable rates: one rate excludes the Form 1235 network upgrade addition while the other;
rate includes the additional increase and impacts. This double issue is due to the rule that
TCI may not begin to assess the, additional charge for network upgrades until such time
when all subscribers in a single franchise have the service demanding the added rate
revenue. Until that time, TCI will charge the lower basic rate to all customers. TCI has
openly stated that it intends to complete the network upgrade throughout the local area
during the 1999 rate period so that Form. 1235 add-ons will go into effect on the basic
cable rate during the period, though not necessarily on June 1, 1999.
For the City of Federal Way, TCI projects network upgrades to be effective in June 1999.
Table 2 summarizes the calculation of the Form 1235 network upgrade add-on in terms of
the total upgrade investment estimated by TCI allocated over the number of subscribers
(including but not limited to subscribers in Federal Way) benefiting from the rebuild. The
monthly charge of $1.16 per subscriber along with other upgrade impacts will be added to
the maximum permitted rate calculated in the Form 1240 Rebuild.
Table 2. Form 1235 Network Upgrade Rate Component
Calculation Factor Amount
Preliminary Revenue Requirement
(to recover costs and related expenses of the network $3,035,539
upgrade)1
Number of Subscribers Benefiting from the Upgrade
(including customers outside this franchise)
217,233
Additional Monthly Cost per Subscriber for Network $1.1645
Upgrade
Projected Rebuild Completion (for rates to be effective) June 1999
C. Maximum Permitted Rate for Basic Cable Television Service — Form 1240
The maximum permitted rate is calculated in Form 1240 using allowable costs and FCC -
mandated methodology. The rate is based on the following components:
• A base rate,
• Adjustments for inflation,
• A "true -up" adjustment which adjusts rates to reflect actual rate and revenue
performance in -the prior period (which may benefit either the operator or the
subscriber depending on whether revenue was over -or under -collected from the
prior maximum permitted rate), and
• Other external costs.
1 This calculation impacts rates for the 1999-2000 period; after rebuild completion, TCI will true -up this
calculation to reflect actual costs incurred and revenue recovered.
PAGE 4
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CITY OF FEDERAL WAY (17521813) 1999 CABLE TELEVISION RATE REVIEW
The calculation of the -maximum permitted rate for the Basic Cable service level appears
sound and justifiable. Unless challenged, this rate will go into effect June 1, 1999. The
components of the previous year's rate alongside those of this year's proposed rate are
shown in both Table 3a (rate calculation assuming network rebuild) and Table 3b (the
standard Form 1240 rate calculation).
The maximum permitted rate for the City of Federal Way, calculated on Form 1240
Rebuild, increases in 1999 approximately 0.5% to a rate of $12.29, excluding the Form
1235 add-on. With the add-on to that rate, the maximum permitted rate increases 10% to
$13.45. (Note that TCI has elected to not implement the full amount permitted; the
operator selected rate is $12.42 under the Rebuild methodology.) - Without the network
rebuild, the Form 1240 maximum permitted rate is calculated to be $12.51, a 2.2%
increase. (Under this scenario, TCI has again selected a rate of $12.42 rather than the
maximum permitted rate.) These rate increases are a result of the elements described in
the foll6wing sections, excluding the Form 1235 add-on component of $1.16.
Table 3a. The Maximum Permitted Rate — Form 1240 Rebuild
Monthly Cost Component
(per subscriber) Prior Rate Proposed Rate
Base Rate
Inflation for True -Up plus Projection Period
Current Markup Method (Channel
Additions)
Channel Movement (Basic to Expanded)
True -Up Adjustment
External Costs
$11.1435
$11.1435
$0.1598
$0.2290
$0.0300
$0.1800
$0.0000
$0.0000
($0.1568)
($0.0183)
$1.0589
$0.7583
I Maximum Permitted Rate $12.2354 $12.29251
Net Change in Dollars
$0.0571
Percent Change 0.467%
plus: Form 1235 Network Upgrade Addition $1.16
Operator Selected Rate for Basic Cable $12.42
Inflation The base rate is adjusted for cost inflation for the true -up period and the
projection period. An inflation factor of 1.0103% is used for the true -up period; the
FCC's current inflation factor for the projection period is 1.0100%. The projection
period estimate appears consistent with similar inflation adjustments for nation-wide use.
The true -up period inflation adjustment of $0.11 plus the projection period adjustment of
another roughly $0.11 adds a total of $0.22 to the base rate. Under the two-step
calculation of inflationary impacts, the inflation component of the maximum permitted
D 6
PAGE 5
CITY OF FEDERAL WAY (F521813) 1999 CABLE TELEVISION RATE REVIEW
rate increases by roughly seven cents in both rate calculation scenarios over the prior
period's adjustment factor.
Table 3b. The Maximum Permitted Rate without Network Upgrade
Monthly Cost Component
(per subscriber) Prior Rate Proposed Rate
Base Rate $11.1435 $11.1435
Inflation for True -Up plus Projection Period
Current Markup Method (Channel
Additions)
Channel Movement (Basic to Expanded)
True -Up Adjustment
External Costs
Maximum Permitted Rate
Net Change in Dollars
Percent Change
$0.1598 $0.2275
$0.0300 $0.0300
$0.0000
$0.0000
($0.1568)
($0.0183)
$1.0589
$1.1240
$12.2354
$12.5067
$0.2713
2.217%
Operator Selected Rate for Basic Cable $12.42
True -Up This adjustment is an annual check on the prior year's base rate to verify
whether the rate- was sufficient to recover basic cable costs; too low, causing subscribers
to pay additionally to compensate for the deficiency; or too high, resulting in a credit
from TCI to compensate subscribers for being overcharged in the prior period. In the rate
filing, the prior period's maximum permitted rate is re -calculated using actual historical
data in comparison to the effective rate during that period. The true -up adjustment
equates to the difference between actual rates charged and the retroactively calculated
maximum permitted rate plus roughly 11.5% annual interest.
While 1998 filings showed wide -spread true -up adjustments actually being credits to
franchises in the immediate region, this year's adjustment is proving to be a retroactive
charge for rates actually being too low for true costs incurred by TCI. In Federal Way,
this is not the case. TCI over -collected roughly $290 in revenue from the maximum
permitted rate estimate during the prior projection period. With added interest, the
adjustment to compensate for that over -collection equates to a credit of $0.02 per
subscriber per month to the base rate. Conversely, in the prior period, the City of
Federal Way experienced a monthly true -up reimbursement of $0.16 per subscriber. This
adjustment is equal in both Form 1240 calculations.
External Costs This cost component includes items such as programming costs,
copyright fees, and regulatory commission fees that are passed through to the subscriber.
Under .Form 1240 Rebuild, these costs decrease in the projection period approximately
28% or $0.30 per subscriber per month over the prior period's costs. Copyright fees and
PAGE 6
Tc -1, - AubwtrN
CITY OF FEDERAL WAY (F5218B) 1999 CABLE TELEVISION RATE REVIEW
regulatory fees remain fairly constant from the prior year and throughout the projection
period; thus, the driving factor behind the change in external costs is the cost of
programming.
On the standard Form 1240 without the network upgrade, the cost of programming drives
the difference in external costs. Effective monthly programming rates are projected to
increase from $0.7994 per subscriber during calendar year 1998 to $0.9142 by the end of
the coming rate period (ending May 2000).
III. Conclusion
Equipment and installation rates proposed for 1999 in Form 1205 appear to be equal to
those proposed to other local jurisdictions. This finding is sound due to -the nature of the
cost -averaging methodology utilized by TCI to calculate such charges.
Along with many neighboring franchises, the City of Federal Way will be experiencing a
Form 1235 -allowed network upgrade addition of $1.16 to the maximum permitted basic
cable rate, effective when the rebuild is complete and will benefit all subscribers in the
franchise.
Finally, based solely on information provided by TCI in Forms 1240 and 1235 and
without a thorough audit of the sources of that information, the maximum permitted rate
for Tier 1, or Basic Cable, is calculated to be $13.45 for this franchise including the
network upgrades and rate add-on. Without the upgrade, the Form 1240 allowable rate is
$12.51. The calculation methodology appears to conform to FCC regulations and, to the
best of our knowledge, is accurately executed.
Under Form 1240 Rebuild, the operator selected rate for Basic Cable services increases 18
cents per subscriber per month from the prior year's rate to $12.42. The operator elected
not to enact the maximum rate permitted under this calculation methodology; in effect,
TCI is not taking the full Form 1235 allowance of $1.16. Without the rebuild, the
operator selected rate is also $12.42; TCI did not take the full amount allowed under this
methodology. The following factors -in the calculation of this rate, aside from the Form
1235 allowance, influence the change:
• The standard inflationary adjustment,
• A true -up adjustment to retroactively reimburse subscribers for the prior
year's over -collection of revenue (estimated versus actual revenue under the
previous rate); and
• Changes in programming costs.
Franchises receiving these annual rate filings from TCI Northwest, Inc. have until June 1,
1999 to comment on and appeal these rate changes if they choose. As of that date, these
rate changes for equipment and installation as well as Basic Cable services will go into
effect.
PAGE 7
TC T - TAC o MAS
CITY OF FEDERAL WAY (F7860B) 1999 CABLE TELEVISION RATE REVIEW
I. Overview
TCI Northwest, Inc. has submitted its mandated Federal Communications Commission
(FCC) rate filing forms to the City of Federal Way. The March 1, 1999 filings initiated
the 90 -day comment and appeal period during which regulating cable television franchises
may review the forms before new rates take effect on or after June 1, 1999.
The filing of these annual regulatory forms consist of the cable television operator's
justification for any rate and fee changes for the upcoming year. The forms exhibit the
calculation methodology and assumptions used to compute the annual rate adjustment.
3H Cable Communications Consultants has reviewed TCI's filing to the City of Federal
Way to evaluate the proposed changes. The scope of this review included the following
general tasks:
• Verification of the accuracy of the calculations applied by TCI.
• Reference to the source of key statistics used in the calculation of the
Maximum Permitted Rate computed, and thus, the operator's recommended
rate for customers within the franchise's jurisdiction.
• Identification of the components that drive the proposed rate adjustments.
The annual filings for local franchises have changed from previous years due to notable
issues surfacing in the cable television industry, namely, the upgrade of local networks to
new technology providing different service and programming options to subscribers. This
year, up to three forms are being submitted to franchises from TCI:
• Form 1205. This form exhibits the calculation of equipment and installation
charges which are based on a sampling of TCI's company -wide costs. Such
costs are associated with customer equipment maintenance and installation
costs and the related labor costs supporting those activities.
• Form 1235. New for the local area in 1999, this form calculates the
component to be added to cable television rates to accommodate for TCI's
costs from significantly upgrading systems to provide added benefits to
subscribers. This form does not apply in all franchises depending on the type
of existing service provided to subscribers in those areas.
• Form 1240. This form calculates the maximum permitted rate for Tier 1, or
Basic Cable, services. The maximum permitted rate is based on the prior
year's base rate plus any adjustments for inflation, any retroactive
adjustments made to compensate either the subscriber or the operator for
variances between estimated and actual revenues generated by the prior year's
rate, and any explicit changes in costs such as programming fees and channel
additions. In 1999, where applicable, the maximum permitted rate is added to
a one-time adjustment for Form 1235 system upgrade costs. It is important to
recognize that the calculation of the allowable rate under Form 1240 may be
DPAGE I
TCI- TAtWA
CITY OF FEDERAL WAY (F7860B) 1999 CABLE TELEVISION RATE REVIEW
adjusted downward if it is determined that the previous period's rate was too
high.
An integral part of reviewing these filings is meeting with regulatory authorities at TCI to
discuss changes in the filing format from previous years and current procedures. We met
with Marie Fulghum, Director of Regulatory Affairs for TCI Northwest, Inc., who
provided detailed insight into the preparation of the forms, TCI's reasoning behind certain
decisions made in the course of producing the filings for each franchise, and key issues
central to the findings in each of the forms. Topics relevant to the results of these filings
that were discussed by Ms. Fulghum will be included in the appropriate sections in Part
II below.
II. Findings
A. Equipment and Installation Charges — FCC Form 1205
Company -wide costs are used in calculating TCI's proposed equipment and installation
charges. As in previous years and under Section 76.924 of Commission rules, the FCC
allows TCI to utilize independent sampling of franchise cost structures as the basis for
company -wide equipment and installation charges. This method of estimating costs in
aggregate results in all of TCI's subscribers paying equal amounts for equipment and
installation activities rather than implementing franchise -specific charges.
Cost -averaging allows TCI to phase in new cable technology without causing erratic
spikes in subscriber fees. As with any charge based on a sampling and aggregation of
costs, franchises with lower than average actual costs will, in effect, subsidize franchises
with higher than average costs. While the method may produce local inequities, it is
allowed by FCC regulatory rules; to challenge this practice, a franchise must make a
formal appeal directly to the FCC.
The underlying calculation of Form 1205 is difficult to audit due to the aggregation of
company -wide costs. To effectively verify the accuracy of TCI's calculations may be
more time-consuming and costly than is realistically beneficial to a franchise. To cross-
check the application of Form 1205 to the City of Federal Way, we have verified with
eight other local King County franchises' rate filings that their proposed equipment and
installation charges are indeed equal to those submitted to Federal Way.
On a general basis, TCI has noted that all calculated installation rates have decreased for
1999. This reduction is due to the intentional omission of designated service cost
components. TCI has chosen to exclude certain items to avoid costly legal debate over
definitions and inclusions of components in the calculation. While TCI does believe that
previous filings have been correct, this decision is driven by a need to avoid long appeals
over charges that are actually not used in customer marketing. In practice, TCI
consistently discounts installation rates for promotion purposes; rarely are the calculated
rates shown on Form 1205 used.
/ �1 PAGE 2
TCI - TW6AA
CITY OF FEDERAL WAY (F7860B) 1999 CABLE TELEVISION RATE REVIEW
In 1999, all equipment rates in the local area have increased due to TCI's large purchases
of digital assets (e.g., boxes and remotes) in 1998. These equipment charges are paid for
through charges paid by subscribers choosing to have digital service and not by basic cable
subscribers in their regulated monthly service rates.
Table 1 exhibits the maximum permitted equipment and installation charges calculated on
Form 1205 as compared to the operator -selected rates to be effective June 1, 1999.
Table 1. Equipment and Installation Charges
Type of Service
Current
Rate
Maximum Operator
Permitted Selected
Rate Rate
Hourly Service Charge
$32.00
$27.93 $27.00 -
Install -Unwired Home
$46.95
$41.38 $39.95
Install Prewired Home
$24.95
$22.37 $21.50
Install Additional Outlet - Connect Initial
$13.95
$14.68 $13.95
Install Additional Outlet - Connect Separate
$21.95
$21.08 $18.95
Other Install - Relocate Outlet
$21.95
$20.82 $18.95
Other Install - Upgrade (non -addressable)
$13.95
$33.04 $13.95
Other Install - Downgrade (non -addressable
$8.95
$9.48 $8.95
Other Install - Upgrade/Downgrade (addressable)
$1.99
$1.99 $1.99
Connect VCR - Connect Initial
$6.95
$6.83 $5.95
Connect VCR - Connect Separate
$13.95
$13.82 $12.95
Remote Control (All Units)
$0.30
$0.41 $0.35
Converter Box (Basic Service Only)
$1.60
$3.56 $1.60
Converter Box (All Others)
$3.25
$4.55 $3.50
Other
N/A
N/A N/A
B. Network Upgrade Cost Increment - Form 1235
As described by the FCC, Form 1235, new for 1999 filings in the local area, permits cable
television operators "to recover the costs of significant upgrades that provide benefits to
subscribers of regulated cable services." Under Form 1235 guidelines, a cable operator
may only increase rates due to an upgrade if.
• The upgrade requires significant added capital investment on the part of the
operator,
• The upgrade benefits subscribers directly through improvements in the
regulated services they receive that are affected by rate increases caused by
such improvements, and
• The rate increase is not charged to subscribers until the upgrade takes effect
and provides tangible benefits to the regulated service subscribers.
Jv/ PAGE 3
-TCI - TAtOM A
CITY OF FEDERAL WAY (F7860B) 1999 CABLE TELEVISION RATE REVIEW
In Form 1235, cable operators must demonstrate a net increase in their costs due to
upgrading the system. They must also exhibit that their allocation of costs are made only
to the customers receiving the benefits and that those costs are only those applicable to
subscribers of regulated services. In short, subscribers only pay for services that benefit
them, when they receive them, and only for the amount in which it actually costs to
receive such benefits.
In areas where Form 1235 has been submitted, TCI has issued two Form 1240 Basic
Cable rates: one rate excludes the Form 1235 network upgrade addition while the other
rate includes the additional increase. This double issue is due to the rule that TCI may
not begin to assess the additional charge for network upgrades until such time when all
subscribers in a single franchise have the service demanding the added rate revenue. Until
that time, TCI will charge the lower basic rate to all customers. TCI has openly stated
that it intends to complete the network upgrade throughout the local area during the 1999
rate period so that Form 1235 add-ons will go into effect on the basic cable rate during the
period, though not necessarily on June 1, 1999.
TCI did not submit Form 1235 to the City of Federal Way, as no additional cost
component for network upgrades is being applied to the City's maximum permitted rate
as calculated in Form 1240.
C. Maximum Permitted Rate for Basic Cable Television Service - Form 1240
The maximum permitted rate is calculated in Form 1240 using allowable costs and FCC -
mandated methodology. The rate is based on the following components:
• A base rate,
• Adjustments for inflation,
• A "true -up" adjustment which adjusts rates to reflect actual rate and revenue
performance in the prior period (which may benefit either the operator or the
subscriber depending on whether revenue was over -or under -collected from the
prior maximum permitted rate), and
• Other external costs.
The calculation of the maximum permitted rate for the Basic Cable service level appears
sound and justifiable. Unless challenged, this rate will go into effect June 1, 1999. The
components of the previous year's rate alongside those of this year's proposed rate are
shown in Table 2. The maximum permitted rate for the City of Federal Way increases in
1999 approximately 1.8% to a rate of $12.73. (Note that TCI has elected to not
implement the full amount permitted; the operator selected rate is $12.50.) This rate
increase is a result of the elements described in the following sections.
Inflation The base rate is adjusted for cost inflation for the true -up period and the
projection period. An inflation factor of 1.0103% is used for the true -up period; the
FCC's current inflation factor for the projection period is 1.0100%. The projection
period estimate appears consistent with similar inflation adjustments for nation-wide use.
PAGE 4
TC I - TkG01'Vl A
CITY OF FEDERAL WAY (F786013) 1999 CABLE TELEVISION RATE REVIEW
The true -up period inflation adjustment of $0.12 plus the projection period adjustment of
another roughly $0.12 adds a total of $0.24 to the base rate. Under the two-step
calculation of inflationary impacts, the inflation component of the maximum permitted
rate increases by roughly seven cents over the prior period's adjustment factor.
Table 2. The Maximum Permitted Rate
Monthly Cost Component
(per subscriber) Prior Rate Proposed Rate
Base Rate
$11.5045
$11.5045
Inflation for True -Up plus Projection Period
$0.1657
$0.2362
Current Markup Method (Channel
$0.0800
$0.1000
Additions)
Channel Movement (Basic to Expanded)
$0.0000
$0.0000
True -Up Adjustment
$0.0040
($0.0377)
External Costs
$0.7500
$0.9251
Maximum Permitted Rate
$12.5042
$12.7281
Net Change in Dollars
$0.2239
Percent Change
1.791%
plus: Form 1235 Network Upgrade Addition $0.00
Operator Selected Rate for Basic Cable $12.50
True -Up This adjustment is an annual check on the prior year's base rate to verify
whether the rate was sufficient to recover basic cable costs; too low, causing subscribers
to pay additionally to compensate for the deficiency; or too high, resulting in a credit
from TCI to compensate subscribers for being overcharged in the prior period. In the rate
filing, the prior period's maximum permitted rate is re -calculated using actual historical
data in comparison to the effective rate during that period. The true -up adjustment
equates to the difference between actual rates charged and the retroactively calculated
maximum permitted rate plus roughly 11.5% annual interest.
While 1998 filings showed wide -spread true -up adjustments actually being credits to
franchises in the immediate region, this year's adjustment is proving to be a retroactive
charge for rates actually being too low for true costs incurred by TCI in many franchises.
For the City of Federal Way, this is not the case. TCI over -collected roughly $850 in
revenue from the maximum permitted rate estimate during the prior projection period.
With added interest, the adjustment to compensate for that over -collection equates to a
PAGE 5
J��
-rcr- I-AcOtA
CITY OF FEDERAL WAY (F7860B) 1999 CABLE TELEVISION RATE REVIEW
credit of $0.02 per subscriber per month to the base rate. Conversely, in the prior period,
the City of Federal Way experienced a monthly true -up addition of a negligible $0.004 per
subscriber.
External Costs This cost component includes items such as programming costs,
copyright fees, and regulatory commission fees that are passed through to the subscriber.
These costs increase in the projection period approximately 23% or $0.18 per subscriber
per month over the prior period's costs. Copyright fees and regulatory fees remain fairly
constant from the prior year and throughout the projection period; thus, the driving factor
behind the increase in external costs is the cost of programming. Effective monthly
programming rates are projected to increase from $0.5304 per subscriber during calendar
year 1998 to $0.6902 by the end of the coming rate period (ending May 2000).
III. Conclusion
Equipment and installation rates proposed for 1999 in Form 1205 appear to be equal to
those proposed to other local jurisdictions. This finding is sound due to the nature of the
cost -averaging methodology utilized by TCI to calculate such charges. While many
neighboring franchises will be experiencing a Form 1235 -allowed network upgrade
addition to the maximum permitted basic cable rate, the City of Federal Way will not
experience the extra cost component.
Finally, based solely on information provided by TCI in Form 1240 and without a
thorough audit of the sources of that information, the maximum permitted rate for Tier 1,
or Basic Cable, is calculated to be $12.73 for this franchise. The calculation methodology
appears to conform to FCC regulations and, to the best of our knowledge, is accurately
executed. The following factors in the calculation of this rate influence the change:
The standard inflationary adjustment,
A true -up adjustment to retroactively reimburse subscribers for the prior
year's over -collection of revenue (estimated versus actual revenue under the
previous rate), and
Increases in programming costs.
The operator selected rate of $12.50 for Basic Cable services is no change from the prior
year's rate; TCI has elected to hold the rate in this franchise constant even though a higher
rate is allowed under this process.
Franchises receiving these annual rate filings from TCI Northwest, Inc. have until June 1,
1999 to comment on and appeal these rate changes if they choose. As of that date, these
rate changes for equipment and installation as well as Basic Cable services will go into
effect.
Jf PAGE 6
CITY OF FEDERAL WAY
MEMORANDUM
DATE: May 27, 1999
TO: Finance, Economic Development & Regional Affairs Committee Members
FROM: Marie Mosley, Deputy Management Services Director JMAYA
SUBJECT: RFP for Banking Services
Background
The City currently contracts with Key Bank for banking services, with the contract expiring this year. We have been
banking with Key Bank since incorporation. A request for proposal (RFP) was prepared in 1996, at which time,
Key Bank proposed the lowest cost for the three year contract term and therefore, it was decided to stay with Key
Bank.
Recently, the City issued an RFP for banking services on April 200. The RFP was published in the Daily Journal of
Commerce and the Federal Way Mirror on May Ist & May 5`h. RFP's were sent to 12 financial institutions. The
City received six proposals on May 14th. Attached is the projected cost analysis for the term of the contract, based
on proposals received from each of the six banks.
Three of the six proposals did not provide a viable safekeeping option in their proposal. In each of these three cases,
we included the cost of a safekeeping proposal received by Union Bank of California for costing comparison.
Sterling Savings Bank and US Bank are the lowest and second lowest proposals based on price comparison, which is
50% of the selection criteria.
In addition to price, the evaluation criteria also considered responsiveness (25%) and ability & history (25%). We
have contacted the municipal client references, provided in the proposals, to verify their ability to adequately
safeguard the City's $40 million investment portfolio and to perform general banking services. The references
provided by Sterling Savings Bank utilize their services in a very limited capacity as compared to the City's
requirements, both in terms of volume and complexity. In addition, Sterling Savings Bank proposal consisted of
two additional partners to provide merchant services and safekeeping, which we believe, will require additional
coordination from the City. The reference verification for US Bank provided predictable quality and ability to meet
the City's service needs.
Recommendation
We are recommending that the Finance Committee authorize the City Manager to enter into a contract with US
Bank for a three-year term. The total cost over the three-year period will be $50,257 or an average annual fee of
$16,752.
APPROVAL OF COMMITTEE ACTION:
Committee Chair, Mary Gates Committee Member, Jeanne ;Committee Member, Linda
Burbidge Kochmar
E/
Three year Contract Term
Description
Estimated
Monthly
Activity
Columbia
Key
SeaFirst
Sterling
US Bank
Wells
Fargo
Basic Services:
Account Maintenance
2
576.00
720.00
576.00
504.00
576.00
864.00
Checks Paid
624
2,695.68
2,808.00
2,021.76
2,695.68
2,695.68
2,021.76
Deposits
50
216.00
450.00
360.00
288.00
360.00
720.00
Cash Deposited per $100
45
105.48
113.40
105.48
81.00
113.40
1,863.00
Checks Deposited - Local
767
1,656.72
1,518.84
1,242.72
1,380.60
1,242.72
1,932.84
Checks Deposited - Non -local
352
760.32
1,013.76
887.04
633.60
633.60
1,267.20
ACH Credits
64
115.20
184.32
-
368.64
184.32
69.12
FDIC Deposit Ins (per thous $)
150
-
48.60
48.60
-
48.24
48.60
Returned Checks
4
288.00
432.00
180.00
216.00
180.00
288.00
Stop Payments
2
720.00
864.00
576.00
1,296.00
720.00
432.00
Fine Sort Base
1
720.00
2,160.00
360.00
-
1,260.00
1.08
Wire Transfer In
10
2,880.00
2,520.00
2,160.00
3,600.00
2,520.00
3,060.00
Balance Reporting
1
3,240.00
7,920.00
4,374.00
2,700.00
1,800.00
1,080.00
Balance Reporting (per item)
750
-
5,400.00
2,700.00
-
1,350.00
4,050.00
Wire Transfer Out - Repetitive
15
5,400.00
4,050.00
3,510.00
5,400.00
4,860.00
4,860.00
Wire Transfer Out - Non -Repetitive
3
1,080.00
1,080.00
810.00
1,620.00
1,620.00
972.00
ACH Payroll Processing - 2 day
2
792.00
720.00
1,080.00
360.00
1,080.00
ACH Payroll Items per pay period
729
1,312.20
2,099.52
2,099.52
2,099.52
2,755.80
ACH Returns
2
144.00
216.00
180.00
216.00
216.00
162.00
Flne Sort/Item
576
-
1,244.16
414.72
-
725.76
622.08
Key View EDI Report
64
-
4,608.00
-
-
Other Services:
Account Reconciliation
1
1,800.00
-
900.00
2,520.00
2,340.00
Account Reconciliation - checks pd
624
-
786.24
-
-
-
General Safekeeping
1
no response
1,800.00
2,520.00
4,500.00
-
Safekeeping - Annual Fee
20,000
-
-
-
-
6,000.00
Safekeeping - BA securities/mth
4
no response
288.00
504.00
299.52
Safekeeping - Other Securities/mth
16
no response
1,152.00
-
720.00
-
1,198.08
Safekeeping maturities - Fed
2
no response
1,440.00
720.00
720.00
1,800.00
1,080.00
Safekeeping settlement - Fed
2
no response
1,440.00
720.00
720.00
1,800.00
720.00
Safekeeping settlement DVP
2
no response
1,440.00
720.00
2,160.00
1,800.00
3,600.00
Credit Cards -discount fee -swipe $
4,000
3,124.80
2,736.00
2,779.20
2,736.00
2,736.00
2,793.60
Credit Cards -discount fee -phone $
6,000
5,875.20
5,443.20
5,076.00
6,048.00
4,104.00
4,190.40
Credit Cards -discount fee -swipe #
20
-
-
36.00
-
201.60
144.00
Credit Cards -discount fee -phone #
20
-
-
72.00
-
216.00
144.00
Credit Cards -equipment rental
3
3,240.00
3,132.00
1,080.00
3,132.00
2,592.00
2,700.00
Endorsement stamp
4
2,196.00
no response
-
-
-
TBD
Deposit slip books
1
-
no response
TBD
Locking bank bags
1
TBD
Escrow agent services
1
no response
TBD
quoted $70/mth
TBD
TBD
Night Depository Service
1
-
-
-
-
Corporate credit card interest rate
14.65%
must be paid
0.00%
14.15%
0.00%
19.80%
Corporate credit card annual fee
5
225.00
525.00
375.00
375.00
375.00
825.00
Subtotal Basic Fee
39,162476
67,766.80
38,750.28>;
40;634.66
46,209.84
54,184.28
Alternative Proposal.
ACH Payroll processing - 1 day
2
no add'I chg
no add'I chg
no add'I chg
no add'I chg
no add'I chg
no add'I chg
ACH Payroll items per pay period
729
no add'I chg
1,837.08
1,837.08
no add'I chg
no add'I chg
1,312.20
Subtotal Alternative Proposal
39,162.75
59,603.88
40,587.36
40,634.66
46,209.84
55,496.48
Other Services:
-
-
-
-
-
-
Safekeeping & Software Setup fee
1
11,475.00
6,800.00
3,540.00
300.00
1,475.00
3,150.00
CD Rom Imaging (mthly fee)
1
1,440.00
No quote
1,800.00
720.00
1,440.00
No quote
CD Rom Imaging (per item fee)
576
622.08
No quote
1,140.48
No charge
622.08
No quote
Connections software (monthly fee)
1
1,440.00
Y
-
1,260.00
3,600.00
Annual Credit Card Fee
1
-
-
55.00
-
225.00
Overdraft Check Fee
20
3,150.00
3,870.00
-
-
Overnight overdraft rate
2,000,000
-
-
3,821.94
4,808.25
Daylight overdraft rate
2,000,000
-
4,808.25
Short Term financing rate
2,000,000
TBD
TBD
TBD
TBD
TBD
3,328.74
Positive Pay Fee
1
No quote
4,320.00
2,880.00
no add'I chg
no add'I chg
No quote
Positive Pay Fee - per item
576
No quote
-
1,451.52
no add'I chg
no add'I chg
No quote
Overdraft charge per day
1
-
-
-
-
720.00
Startup Credit
1
(250.00)
(750.00)
(750.00)
Cancelled Checks Returned
576
622.08
1.08
829.44
Grand o aFee75,960710
Average Annual Fee
19,220.64
24,864.63
18,17 .79
13,884.89
16,762.31
25,655.39
Banking Final year contract r 521/99 4:07 PM
CITY •F
cc
A City for All of Vo"
Significant Events
1-2
...: ......... ......... ......... .......:. ........
................ ......... I ................................... .......
3-4
............................ ......................... .......................
5-6
.......................... .................... ......... ......... .......
r�.......................
I...... ......................................................
vin..................
......................................................................
16
5M
.... ....... ...................................................
..................... ......... ......... .........
Jn rm W Ar my an ,u ay Sp of ro Ek
A City for All of Vo"
Significant Events
1-2
General Government
Revenues
3-4
Expenditures
5-6
Cash Mgmt/Investments
6-7
Supplemental Schedules
8-15
Attachment A
16
Questions? Contact:
Marie E. Mosley 661-4063
Tho Kraus 661-4170
Mari Doring 661-4096
Issue Date: May 19, 1999
April 1999 Monthly Financial Report
OVERVIEW
The Monthly Financial Report is intended to provide an overview of financial activity that has taken place
in the reporting period. This report focuses mainly on activity incurred in the following operating funds:
General, Street, Arterial Street, Utility Tax Projects, Solid Waste & Removal, Paths & Trail, Surface Water
Management, Strategic Reserve, Airport Strategic Reserve, Debt Service, and Dumas Bay Centre. The
Summary of Sources and Uses (Attachment A) captures financial activity through April for the years 1994
through 1999.
Municipal Court
On March 16`h Council
approved an ordinance
authorizing the creation of a
Federal Way Municipal
Court to replace the current
contract with King County
District Court, effective
January 1, 2000. The court
will hear violations of city
ordinances, traffic laws and
some state laws. The court
SIGNIFICANT EVENTS
will consist of a part-time
judge, a part-time court
commissioner, a court
administrator, and nine court
clerks. The court is a
division of the City
Manager's Office. The
projected start-up cost
(furniture & equipment such
as workstations, computers,
phones, etc) of approximately
$300,000 will be included in
the year-end budget
adjustment request. Staff is
currently developing job
descriptions, polices and
procedures, and purchasing
furniture and equipment.
Annual Audit
The state auditors began the
audit process at the beginning
of March and are expected to
be complete by the end of
City of Federal Way April 1999 Monthly Financial Report
May. Beginning with this
year's audit, the audit focus
has shifted from a financial
standpoint to a risk based
approach. That is, they are
looking to make sure there is
accountability and no fraud,
rather than looking at just the
financial results. The audit
exit conference will occur the
first part of June. No
findings are expected as a
result of this audit.
Y2K Progress
Management Information
Systems Division is busy
working with departments
and vendors on converting
systems so they are Y2K
compliant by the end of the
year. The City's financial
management system,
personnel management
system, and police records
system are already Y2K
compliant. The recreation
registration system will be
upgraded in June and the
permit system will be
completed in September.
Staff is also making sure all
computers, telephones,
pagers, etc. are Y2K
compliant.
Grants
The Transportation
Improvement Board (TIB)
authorized $404,820 in Urban
Arterial Trust Account
(DATA) funds for the design
phase of the 23`a Avenue
South Project (South 317th
Street to South 324x' Street),
effective April 23`a
Estimated funds for
construction is $4,275,980,
providing a total of
$4,680,800 in UATA funds
for this project. The total
grant award increased by
$1,000,000 due to the
addition of the South 320`x'
project.
The City also received
$100,000 in TIB/PFP funds
for Pedestrian Facilities
Program at SR 99/South
330 Street Intersection,
effective May 22"a
The City received
notification from the
Department of Justice that we
will receive the COPS
Universal Hiring Program
grant award of $600,000.
The grant will help offset the
cost of eight police officers
over a three-year period,
effective April 151
The City received
confirmation of the $413,000
grant from
. The
purpose of the grant is to
reimburse certain capital
expenses incurred for the
construction of the Knutzen
Family Theatre.
Bingo Tax Rate
The bingo tax rate reduction
bill passed the legislature by
a wide margin. The bill
would reduce the current rate
from 10% to 5%. Legislators
were impressed by the
testimony of the nonprofit
agencies that the bingo
receipts were for charitable
purposes. Cities will need to
justify the services cities are
providing with this tax
revenue if they are to
convince the governor to
reject the bill.
1999 Asphalt Overlay
The bid opening was May
I Wa', and five bids were
received. The lowest bid
came from Lakeside
Industries with a bid amount
of $1,655,868. The contract
award amount was
$1,598,290, with a 10%
contingency of $159,829 and
administrative costs of
$59,000. The contract was
awarded to Lakeside
Industries at the May 18`h
Council meeting.
City of Federal Way April 1999 Monthly Financial Report
GENERAL GOVERNMENTAL REVENUES
General governmental revenue collections through April total $13,340,054, which is $1,765,362 or 15.3%
above the year-to-date budget ($11,574,692). When compared to 1998, revenues have increased by
$908,663 or 8.5%. Attachment A provides a comparison of year-to-date revenues by major sources for
1999 with comparative figures for the past 5 years.
COMPARISON OF 1999 OPERATING REVENUES - BUDGET TO ACTUAL
$ao,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
F_
REVENUE SUMMARY BY MAJOR REVENUE SOURCES
Period Ending April
30, 1999
Actuals
YTD AekWta
: ,Adopted
Yr
OvM(Und'm•,.1Qlrtsn(p
r' Actuals Rt.:,.tolleeted.
Budget
YTD Bud at `+YYD
Bu"
4MonW'Actiiata
Property Iax
6.634.350
2459.736
37.1%
2,459,736
00%
2,285,140
Sales Tax
8,605,426
3,075,322
35.7%
2,877,973
197,349
6.9%
633,460
Hotel/Motel Lodging Tax
65,000
-
0.0%
-
-
na
-
Criminal Justice Sales Tax
1,362,747
457,945
33.6%
427,593
30,352
7.1%
95,305
Gambling Tax
509,600
390,252
76.6%
293,950
96,302
- 32.8%
101,366
Utility Tax
4,633,769
1,885,997
40.7%
1,699,701
186,296
11.0%
491,954
Real Estate Excise Tax
1,200,000
639,592
53.3%
332,232
307,360
92.5%
203,522
Franchise Fees
494,255
220,578
44.6%
220,972
(394)
-0.2%
108,953
Licenses & Permits
123,201
71,341
57.9%
49,317
22,024
44.7%
5,638
Intergovernmental
4,576,430
1,918,447
41.9%
1,751,250
167,197
9.5%
741;103
CD Building Permits & Fees
853,193
406,553
47.7%
265,565
140,988
53.1%
88,403
CD Pass Thru Fees
-
25,124
na
-
25,124
na
12,798
PW Permits & Fees
239,573
91,163
38.1%
71,076
20,087
28.3%
16,287
PW Pass Thru Fees
-
7,558
na
-
7,558
na
563
SWM Fees
3,120,302
389,255
12.5%
359,900
29,355
8.2%
280,939
Refuse Fees
148,524
37,320
25.1%
49,508
(12,188)
-24.6%
-
Admin Fees
168,478
58,581
34.8%
56,159
2,422
4.3%
16,461
Fines & Forfeits
714,000
306,804
43.0%
228,709
78,095
34.1%
86,409
Recreation Fees
501,343
186,636
37.2%
152,572
34,064
22.3%
47,579
Knutzen Theatre Operations
59,030
9,069
15.4%
19,677
(10,608)
-53.9%
391
Dumas Bay Centre Operations
429,609
150,254
35.0%
114,597
35,657
31.1%
54,242
Public Safety
138,432
144,625
104.5%
17,187
127,438
741.5%
17,395
Interest Earnings
1,040,139
374,332
36.0%
117,966
256,366
217.3%
84,293
Miscellaneous Revenue
1
139,765
33,570
24.0%
9,050
24,520
270.9%
12,074
Subtotal Operations
1
35,757,166
13,340,054
37.3%
11,574,692
1,765,362
15.3%
5,384,275
Interfund Transfers
5,383,289
-
0.0%
-
-
na
Other Financing Sources
1,411,612
1,329,366
94.2%
1,329,366
na
99,175
Total Revenues
42,552,067
14,669,420
34.5%1
12,904,058
1,765,362
13.7%1
5,483,450
Shows actuals as % of year-to-date budget For example, 50% means actual revenues were half of what was budgeted for that period.
-
COMPARISON OF 1999 OPERATING REVENUES - BUDGET TO ACTUAL
$ao,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
F_
City of Federal Way April 1999 Monthly Financial Report
Sales Tax
Sales tax received in April of
$3,075,322 is $197,349 or
6.8% above the year-to-date
budget. Compared to 1998
year-to-date, sales tax
increased $196,948 or 6.8%.
Sales tax received in April
total $633,460 which is
$31,778 or 5.3% above the
adopted budget estimate.
Compared to April 1998,
sales tax increased $57,864 or
10.1%.
Retail sales continue to
remain the largest source,
accounting for 65.3% of all
sales tax collections. Year-to-
date retail sales tax
collections are up $110,621 or
5.8% over 1998, attributable
to an overall increase in retail
activity.
Year-to-date construction and
contracting activity, which
accounts for 8.2% of sales tax
collections, is up $47,501 or
23.3% compared to 1998
activity. This increase is
further reflected in the City's
building permit trends.
Year-to-date, sales tax
collections for manufacturing
activity has increased $30,224
or 28.5%. This is due in part
to a major manufacturing
company reporting sales tax
on a quarterly basis for part of
1998 versus monthly in 1999.
Through April of 1998, the
company reported 4`h quarter
1997's activity (the company
catches up by remitting I" &
2nd quarter 1998's activity in
June 1998), whereas in 1999,
the company reported sales
tax activity for four reporting
periods. The company has
been remitting sales tax on a
monthly basis since July
1998. The remaining
variance has to do with
increased activity, specifically
in lumber products.
The City's largest retail
center, South 348`h retail
center, which generates over
16% of the City's sales tax
has experienced a growth of
$53,677 or 12.0% compared
to 1998, due to increased
activity. The SeaTac Mall
continues to show a slight
decline in taxable retail sales
activity through the month of
April. Major auto sales
activity decreased by $11,173
or 8.7% compared to 1998
due to a major auto dealer
relocating its business in
1998.
Real Estate Excise Tax
For the year-to-date
comparison, real estate excise
tax continues to exceed prior
year's collections. In fact, the
1999's first quarter's
distribution of $436K is the
highest received since the
city's inception. The next
highest distribution was in
first quarter 1998 when we
received $365K.
Utility Tax
Utility tax received through
April (for taxes relating to the
I' quarter) total $1,143,366,
which is $87,087, or 8.2%
above the monthly budget
estimate. Compared to
1998, utility tax receipts have
increased $162,069 or 12.4%.
Gambling Tax
Gambling tax collections are
up $256,748 compared to
1998 largely due to increased
activity at one major card
room establishment and the
increase in card room rates
from 11% in 1998 to 20% in
1999.
State Shared Revenue
State shared revenues are
exceeding budgetary
estimates by $167K or 9.5%.
Year-to-date 1999 receipts
V_
include a distribution of $10K
from the state to compensate
cities for the costs of
implementing and enforcing
the new DUI legislation.
Another distribution is
scheduled for May but should
be significantly lower.
Criminal justice -high crime
has collected $173,087
through April. This revenue
is based on the Cities 1997
crime rate and determines
distribution amounts for July
and October 1998 and
January and April 1999. We
are not budgeted to receive
any high crime revenue in
1999, based on the 1998
crime rate statistics.
Fines & Forfeitures
Fines and forfeitures are
exceeding budgetary
projections by $78K or
34.1%. Revenues are up
$37K when compared to
1998.
Building Permits and Plan
Check Fees
Building permit revenues
were up $230,612 when
compared to 1998 and
$166,112 or 62.6% when
compared to year-to-date
budget, continuing the trend
since the City's inception.
Significant among the
commercial permit activity is
Financial Pacific, who are
doing major tenant
improvements, and Extended
Stay America, which is a 101 -
room hotel. Several permits
were issued for a large
residential development
totaling almost $12K.
Community Development
expedited review deposits
total $51,341, and recognized
revenues is at $22,842.
Environmental review
deposits total $25,354, while
revenues are currently at
$2,282.
City of Federal Way April 1999 Monthly Financial Report
revenues collected through increases with longer daylight
ROW Permits and Fees April were $33K, which is hours and nicer weather.
Overall Public Works permits almost $13K over the year -to- Public works expedited
and fees collected through date budget. This is due to review deposits total $67,309,
April total $98,721, which is increased activity by utility while recognized revenues are
$27,645 or 38.9% over the companies working in the at $7,558.
adopted budget. ROW permit ROW. Activity usually
GENERAL GOVERNMENTAL EXPENDITURES
General governmental expenditures through April total $9,197,402 or 24.8% of the annual operating budget
($37,078,044). Operating expenditures are below the year-to-date budget ($9,438,129) by $240,726 or
2.6%. When compared to 1998, expenditures are up $732,577 or 8.7%.
COMPARISON OF 1999 OPERATING EXPENDITURES - BUDGET TO ACTUAL
$40,000,000
$35,000,000 • '/ y',
$30,000,000
$25:000:000 ';' 4 mV v Vw'x"4' "+PiIN"r`' 4 ¢'iV' 4 ri �> f• ' ,�y,'-;
$20,000,000 w
Actual Ekpgnddures
$15,000,000iq
�.• f;
'. ' V� '9`197,402 ••��1,:.,
$10,000,000 z r
4 v 6 977 248 7i "
$5,000,000 1,589,
$- -
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
EXPENDITURE SUMMARY BY DEPARTMENT
Period Ending April 30, 1999
V v A
Vlp R
0` ;$Adopted �5rxt{�,"1 r a "x
"rn § *vd �.
nt r
�
yr l
w.
'71"ctua(s
a m
, :.Bud at z,r. _
Ia k14r r Ex
nded.
KB
9�
"R� ^1+wlYTD$ud�r�,.'1SD8u�r�r
morrm
City Council
219,841
113,179
51.5%
113,774
595
0.59A,
74,233
City Manager
587,110
214,282
36.5%
200,870
(13,412)
-6.7%
48,749
Municipal Court
-
8,748
na
-
(8,748)
na
8,748
Management Services
1,947,613
519,703
26.7%
525,131
5,428
1.0%
101,925
Civil Legal Services
522,356
230,905
44.2%
169,685
(61,220)
-36.1%
34,531
Criminal Legal Services
1,210,809
311,416
25.7%
341,725
30,309
8.9%
85,584
Community Development
3,048,376
985,844
32.3%
1,026,422
40,578
4.0%
287,670
Public Safety
12,049,356
4,032,615
33.5%
4,087,151
54,536
1.3%
965,479
Jail Services
875,000
277,962
31.8%
243,676
(34,286)
-14.1%
91,354
Parks & Recreation
3,065,364
859,293
28.0%
953,574
94,281
9.9%
239,747
Dumas Bay Centre Operations
467,436
152,091
32.5%
138,363
(13,728)
-9.9%
44,981
Knutzen Theatre Operations
159,030
32,652
20.5%
53,010
20,358
38.4%
8,298
Public Works Operations
3,444,273
890,943
25.9%
939,456
48,513
5.2%
156,469
PW Asphalt Overlay Program
2,018,311
18,554
0.9%
18,554
-
0.0%
4,634
Solid Waste & Recycling
299,727
61,019
20.4%
59,742
(1,277)
-2.1%
15,322
Snow & Ice Removal
55,076
5,559
10.1%
10,978
5,419
49.4%
424
HoteVMotel Lodging Tax
65,000
-
0.0%
-
-
na
-
Surface Water Management
1,749,884
482,535
27.6%
549,785
67,250
12.2%
112,007
Debt Service
5,293,482
102
0.0%
6,232
6,130
98.4%
Subtotal Operations
37,078,044
9,197,402
24.8%
9,438,128
240,726
2.6%1,
2,220,154
Interfund Transfers
7,751,571
0.0°h
na
Other Financing Uses
680,479
3,525,592
518.1%
3,525,592
na
2,260,076
Total Expenditures 1
45,510,094
12,722,994
28.0%1
12,963,720
240,726
4,480,230
COMPARISON OF 1999 OPERATING EXPENDITURES - BUDGET TO ACTUAL
$40,000,000
$35,000,000 • '/ y',
$30,000,000
$25:000:000 ';' 4 mV v Vw'x"4' "+PiIN"r`' 4 ¢'iV' 4 ri �> f• ' ,�y,'-;
$20,000,000 w
Actual Ekpgnddures
$15,000,000iq
�.• f;
'. ' V� '9`197,402 ••��1,:.,
$10,000,000 z r
4 v 6 977 248 7i "
$5,000,000 1,589,
$- -
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
City of Federal Way April 1999 Monthly Financial Report
Municipal Court costs for April
total $8,748, which consists of
the purchase of used office
furniture.
Management Services
expenditures total $519,703
which is $5,428 or 1.0% below
the revised budget estimate
($525,131). Salaries and Benefits
are currently at 37%. Also,
intergovernmental charges, which
include budgeted election costs of
$70,000, have only expended
$2,000 or 1.9% of the annual
budget ($104,000).
Community Development
Operations has expended
$985,844 or 32.3% of its annual
appropriation ($3,048,376).
Through April, they are below
their budget by $40,578 or 4.0%
of the year-to-date budget
($1,026,422). Only 27.1% of the
services and charges budget
($671,938) have been expended.
Parks Operations expenditures
total $859,293 which is $94,281
This section of the report
provides Council with an update
of the investment portfolio.
The Investments by Category
and State Investment Pool
Investments by Type graphs
illustrate our efforts to diversify
the City's investments. Our
investment policy provides
or 9.9% below the year-to-date
budget estimate ($953,574). This
is 28.0% of its annual
appropriation and is due to low
expenditures in both supplies
(17% expended) and services and
charges (13% expended.
Through April, temporary help
totals $27,240 or 13% of its
annual budget ($210,055). This
is an increase in temporary help
when compared to last month,
due to additional help needed for
Celebration Park.
Public Works Operations is
below April budget estimates
($939,456) by $48,513 or 5.2%,
and has expended $890,943 or
25.9% of its annual appropriation
($3,444,273). This is due to the
delay of invoices for
intergovernmental expenditures,
such as King County traffic
maintenance and WSDOT state
highway maintenance. Through
April we have paid out $27,450
or 5.2% of the annual budget
($531,544),
CASH MANAGEMENT
that... "No more than 5% of the
portfolio may be invested in the
securities of a single issuer,
except for the U.S. Treasury, to
which no limits apply, and
commercial paper, which is
limited to 3% of the portfolio in
accordance with state law. No
more than 30% of the portfolio
may be invested in bankers'
SWM Operations are below
projections by $67,249 or 12.2%
of the April estimate of $549,785.
Police Services have expended
$4,032,615 through April, which
is $54,536 below the budgetary
estimate of $4,087,151. This is
due in part to the delay of the
Valley Communications invoice
for April. Salaries & benefits,
which are 67% of their total
budget (excluding temporary
help, overtime & termination
pay), totaled $2,949,584. This is
34% of the annual budget
($8,681,503). Overtime pay
totals $133,950 which is 54% of
its annual budget ($250;000).
This could be attributed to several
full time positions that were
vacant.
Jail Service is above April
budget estimates ($243,676) by
$34,286 or 14.1%.
The total expended $277,962,
does not include payments for
March and April services.
acceptances and certificates of
deposit".
The Investment Interest Rates
graph shows the average
maturity yield for the years 1996
through 1999. The average
portfolio maturity and yield as of
the end of April is 5.02%. This
is a decrease of .05% from the
March balance of 5.07%.
5,'9'Actual Yield;Amounts as of A0nI,30th
..,- J Ft-,!;
Year
1996
1997
1998 1
1999
6 Month T -Bill
5.28
5.53
5.26
4.53
State Investment Pool
5.29
5.50
5.50
4.82
Inhouse Investment
6.11
5.88
5.89
5.21
Total Portfolio Investment Interest
5.75
5.75
5.71
5.02
City of Federal Way April 1999 Monthly Financial Report
Investments by Category
April 30, 1999
Agency
Bankers 15%
Acceptance
7%
Certificate of
Depo
7% sit
I
Treasury Notes
22%
State Investment
Pool
49%
State Investment Pool Investments by Type
Commercial Repurchase
U.S. Treasury Paper Agreements
Securties 7% 16%
5% Certificates of
Deposit
1%
U.S. Agency
Securities
71%
Investment Interest Rates as of April 30th
j 7.00
6.00
j 5.00
fll;,
4.00
y,
E16 Month T -Bill
Gs'
iEState Investment Pool
3.00
i,
❑Inhouse Investment
_
i❑Total Portfolio Investment Interest
2.00
'
1
1.00
X-
—
_
1996 1997
1998 1999
City of Federal Way April 1999 Monthly Financial Report
MAJOR REVENUE SOURCES
F_ 8
SALES TAX COMPARISON by AREA
LOCALREWIISALES TAXREVENUES
Aoen� '
l,�M1
AS
Ac&W
719W e
7 ',
-ActualAehraf.,
-- ,'dgW
ACN irWms-:1 %Wah
n�IWnth B-
January
S584,297 S
603,980, S
654,256 $
644,666 S
623,3861 $
638,862' $
667,688 S 711,432 $
43,7441
6.8
February
849,037
870,3181
882,234
683,229
902,478
949,276_
941,801 1,013,425
71,624
7.6
March
579,220
-
SM. 171
802,830
807,790 i
840,987
640.967 1
714,840
--
887,002 717,005 -�-
-----
50,003 ''�
7.5
-----
April
522,578
_
!--
500.911
573,887
-
577,022 1 _
575,596
_ _ 601,682 633,460
31,778!
5.3
may
585,809
597,164,
624,667
768,980!
860,7331
855,3961
706,570
31,307
0.0
une ----� --
556,790
632,387
599,100
607,104 1
669,058 �
769,461
686,513 +-
7.3%
0.0
July
615,567
603,320 1
617,531
600,594 1
657,032
645,475.
_ _ __-
656,290 !
0.0
August
1 603,765
651.1231
676,546
650,423
694,702
682.263
704,3821-- !
-
0.
September
619,020635,050
!
713,489
734,368
735,617 1
850,295
788,583 1
0.0
October
609,162
626,974 1
675,731
---652,886 --
657,100 1
761,561 ' _-_-
714,775 1 --- -_.r.
0.0
ovember
627,343
638,2541
654,050
668,751
687,5851
739,326'
714,7701
0.0
Decent bar 594,528 618,765 650,583
7 14 ai.::.T i86,7er i ':7,e7e,Tw i
664,611
°' 608427 i.._..
793,528
e,w4,734 c�
800,018.
d let 17e�i at'
755,570
✓ti wi,4ri i
0.0
_.-..-
■,ubNswsw
i,.w47wu7's.wa>wrw: i;e7:A7i;rw iteu,i4e,wT i on.o2TeTslli i-oi�iie41 s �.w2Aea.ose' 1110
iaiet,w2
17,12!
F_ 8
SALES TAX COMPARISON by AREA
YTD Through April
I
Change from 1998
Group
1993
1994 I 1995 -�
1996 1997
1998
1999- ?S Change _:%
Change
Total Sales:Taz
--- --
52,535,130 $2,655,380 $2,713,007
-1-- .............. ---- --------
! $2,712,707 $2,749,378 i $2,878,374 i $3,075,322':
------------------------.-... -
----------
5196,948 :
6.6•/a
S 348th Retail Block
295,496
296,904 378,163
387,818 422,731
446,202 1
499,879
_.._
53,677
- ..............
12.0%
SeaTac Mail
420,725
427,013 j 411,686
388,970 375,991
377,473
373,295 1
(4,178)
-1.10/6
Major Auto Sales
j 96,6131
106,0961 105,5871
121,857 117,726
128,3841
117,211
(11,173)1
-8.7%
S 312th to S 316th Block_
34,181
31,980 34,176
1 31,817 29,085 _
29,076
31,307
2,231
7.7%
Pavilion Center
na j
na na
45,597 45,643 _
44,721
47,998 1
3,277
7.3%
Hotels & Motels
I 10,445
9,133 j 12,336
i 9,494 13,076
11,919 1
14,403
2,484
20.8°h
F_ 8
City of Federal Way April 1999 Monthly Financial Report
u y,o S 4 n
m COMPARJSONOF AXCOLLECT/ONSBYSICCODEGROUP NY 1 ( r 1,
f w4� wAM�� r . x a n 1 w lir' ` YTD7hroughApr►J, n Fr.,,.a,MFes..J
t . r ,• r.� 98 , `' X87' 988'° ,w t ChangsfiDriJ^I998•vq!
' , Charrg4li. � X;Changa
o• r ;
COMPARISON OF SALES TAX COLLECTIONS BY SIC CODE GROUP, n
r "
1,898,1991S 2,008,82.0 $ 110,621 5.89
Services 213,218
188,242
219,820 228,2651 263,129
For the Month o/Aprll
279,132 12,3391 4.6°
onstructiordContract 163.4551
148,7161
Component
:: ;. 1893 h-*.
198! W " `•,,iO,"',7995,
1998 I
1987
;.1898 1999
Change from 1998. .•
Ch n
Group
I ,,:,,i. Aefual Actual
-r,Actual - 1 .
Actual l
Actual •
-:,:t
Adua! V .'•Actual ' r.-' S Changa s ,%X Change
Reta.1 Trude
$ 359,242 $
325,104
S 322,049 $
3813,050
S 370,376
S 389,988 $ 409,819 $
19,830
5.1%
--
Services
---
41,211
48,631
-----------------
61,745
-._
55,851
_._-.------------
62,105
- _.._-----
56,017 54,336
(1,681)1
----
3.0%
Construction/Contract
33,802
24,655 I
63,923
32,013
33,209
33,251 ' 63,458 r
30 206 T
90.8
Wholesaling
27,271
32,785 1
57,953
35059
32,472
38,623 37,195
(1,428)!
-3.7%
TransplComm/Utility
28,264
28,357
--------r------
20,332
---..-_----
21,843
-
29,414
--- ,992 --- 5
28,992 23,025 !
,967)
(5,967)',
---
20.6%
Manufacturing21,510
-
24,377
27,692
24-,642
31,283
6,286 j 26,510
20,224
321.7%
Government
''�3,660
5 424
-----
4,929 ----
-_
13549
�--- - 6,317'
- - - -
8867 '� 6,940
(1,926)',
---
21.7%
FINIns/Real Estate
3,346 1
5,014 1
7,863
5,792
- - 8,929
6,563
(1,146)
-14.9 %
Other
4,270 :
6,564 1
--- 7,200
4,923
-- 8,442
5,863 '�, 5,614 j -
- (248)--------4.2%
_- Total
_.
� -
iii52$676 1 f
...__F - i
. _ ... .�.:...-------�--.--......
b00.917., S+•' 573,887 ; S
577,022
........
S 582,547
.. 575,598 S ! 833,480 i i �, '57,M] -i -,,
f a'_
....
y 9.9%
Taxahie,Saiss' ,. ,..:f Po;81A79,529� 5' ,68,930,706'
'787,492,688 r: 87,084 933
f 88,534,984 f "87,717,224: f + 74,524;7 f "&
8,807,534 ^7� <
' 9.9x
u y,o S 4 n
m COMPARJSONOF AXCOLLECT/ONSBYSICCODEGROUP NY 1 ( r 1,
f w4� wAM�� r . x a n 1 w lir' ` YTD7hroughApr►J, n Fr.,,.a,MFes..J
t . r ,• r.� 98 , `' X87' 988'° ,w t ChangsfiDriJ^I998•vq!
' , Charrg4li. � X;Changa
Retail Trade $ 1.757.559 S
1,760,927 $
1,748,437, $ 1,837,679, S 1,830,841, $
1,898,1991S 2,008,82.0 $ 110,621 5.89
Services 213,218
188,242
219,820 228,2651 263,129
266,793
279,132 12,3391 4.6°
onstructiordContract 163.4551
148,7161
214,389 160,874 ! 175,8661
203,849
251,350 47,501 1 23.3°
lesaling 132,7661
153,978
202,5661 175,950 139,0991
178,446
181,000 2,554 , 1.4
ransp/Comm/Utility 113,459
129,8791
134,204 1 85,142 121,280
117,302
118,340 11038 0.9°
Manufacturing 92,435
102,0001
117,283 139,973 134,4171
106,154
136,379 30,224 28.51A
Govemment 22,503
22,493
26,976 36,8681 27,613
42,277
36,699 (5,578) -13.2°
Flydlns/RealEstate 23,271
23,570
24,032 26,6711 29,3431
33,981
38,048 4,066 12.0°
ther 16,464 25,575 _25,300 21,285 27,790 31,374 25,556 (5,819)7
,2,713,0071' f . 59'72.,711421,,790576 "f.;'323,458219 $ '338,8 361;80;818 f, •2.':3:,17�7_;j
$> Sa2;199.947+,i
Taxable Salesrf•?ZY82601Z 300.$841 f 7,313 $
SALES TAX ACTIVITY BY SIC CODE
YTD through April 1999
Government Fin/Ins/Real
Manufacturing 12% Estate
4.4% 1.2%
Trans/Com/Util Other
Wholesaling
3.8% / 0.8%
Constr/Contract
8.2%
Services
9.1%
Fr 9
Retail Trade
65.3%
City of Federal Way April 1999 Monthly Financial Report
F-
10
REAL ESTATE ERGS 9TAX REVENUES
• •,`: > , : . .,, . , e:. :.
R 0 4'..788]d'p �•
7894 .::;
1985 yV C1=Y6i;F ni okw'r 7987
1988
1899
1998jalp
4a Aforltli„ , IilfAewl:.' �w . AefuY.,::: j :•
' Achwd ,,, r 'A Aeiwal8,',s !4.K'-
AehW .:' i &aipat •.' ,
Actual FF$ vwaiC*:Z R?i'IhAanea:
January $ 108,949 $
202,396, $
93,509 , $ 95,366 $ 146,325 $
163,211 $
56,816 $
289,269 $ 232,454
40917.
February 80,908
65,621
52.253 70,177 94,719
119,717 _
60,3171
65,939 5,622 !
9.3%
March 56,212
72 702
_.
63,025 84,096 101 508
82,116
110 335
80.862 29 473
-- ( �C
TY.
April 78,549
249 510
83,156 105,133 132,678
166,282
104.765
_ 203,522 1 98,757
94.3
Ma ,
Y
5- T -
1oa ss1
0.0%
--._
June 105,092 i
�-
-
94,387 ��.
�
73.648 ', 133,2 8,
-- -
270,672
f
118,511
-- -
-
r- - - �-
0.0%
Y 167,854
130,113
107,8001 133,081 120,432
295,736'--
-
0.0%
--
August � 163,092
96,629 i
_
-- -,-._-
70,258 130,765 231,911
324,962
107,0661 I,
__- ---------r---
e temper 106,684
P
97,514
183,599 123,913 181,490
105,85.
October -��100,392
82,804 ;-
- 82,369 j --- 180,371 151,333
--137,9491 ._
204,439
97,969
- - - - -
0.0
Novem 146,484
64,606
76.809 102,780 216,381
-- 143,877,---
93,419 1, ---
- - -- - - 0.01'
----�-
December 114,078
65,105
132.917 1-160,199 188,999
132.4481
120,363
-
0.0%
• ;T ,� f y 1203.618 j�S..:. y1,121,464 i
,
: '.988 i sem; �76,8Z6, i x; 1,713.697: i
-_._..
.2098.084' S
__......
.200.000 . S. `',
. . --............
839,592
-
Est. RE Value $ 240,703,600 $ 224,292,800 $ 199,937,000 $ 275,765,000 $ 342,739,440 $ 413,611,516 f 240,000,000. $ 127,918,420 f 61,472,051
na
F-
10
City of Federal Way April 1999 Month& Financia! Report
Utility Tax Revenue
Through March, 1999
Cellular
10.42% Pagers & Internet
Storm Drainage 0.20%
0.29% Electric i® electric
0 Gas
35.69% 0Garbage
Phone 13 Cable
23.91% �0 Phone
0 Storm Drainage
IN Cellular
10 Pagers 6 Internet!
Cable I_ Gas
11.15% � 14,10%
Garbage
4.24%
UTILITY TAXES
YTD Through March
Year-to-dete,(thru March) ;
=,". •;
x'" ' �,
199Q W'
1997 , . I
1998
1999 ,, :...
I 1999 Budget
l .. I
Actual .. -
Actual • I'
° Aetual m .;
� •Total Budget $-,YTD
Budget 1
Actual 1 $
Vadence-,='t X Vadencw
Games
Electric
41,908
286,597
559,313
1,800,058
381,768
408,089 S
-- -
26.322
---
69
-- --
Gas
- - -
28,574
-
118,052
---
219,376
-
519,109
- --
146,438
161,172
- -
14,734
10.1o
k
----
Garbage
--- ---
17,502
--
-----
40,764
74 389
----- 315.276
-_
52,466
---- ---- __
48,450
--- ---
- - T --._-----
(4,016),
- --
-7.7%
Cable
678
-- 56,787J-
- 109,493
- -----
465,876
114,546
- --
127,520
-
12,975
,975
11.3%
Phone
33,377
-107,738
- 241,902
955,375---
258,333
- - ----
273,385
----.----___-
15,,051 I,
5.8946
Storm Drainage
-
-
---
12,937 '
6,579
- -- 9
179,259
-
9.788
-- -
3 288
- ---_
- - ---
(6.500) - ---
-66.4%
Cellular
--
14,103 --
0
38,950 '
--
91,659 '
387,416-
--
90,150
119,124 '
_-
28,974
_
32.1°h
Pagers & Internet
g
- 407
- 1,400
2,724
11,400
2,791 '
- -- _- -
2,337
- -
(454)j
-
-16.3
.1'cltal=„
i 36549
Utility Tax Revenue
Through March, 1999
Cellular
10.42% Pagers & Internet
Storm Drainage 0.20%
0.29% Electric i® electric
0 Gas
35.69% 0Garbage
Phone 13 Cable
23.91% �0 Phone
0 Storm Drainage
IN Cellular
10 Pagers 6 Internet!
Cable I_ Gas
11.15% � 14,10%
Garbage
4.24%
GAMBLING TAX BY ACTIVITY
YTD Through March
=,". •;
-1997 Actual,
;x,1998 Actual M,I',;;
"r' 1999°Actual
Change from
1998 l?!<
Activity
%
`.... 5... , ,.
�°
$
$ Variance j %Variance
Games
09% S
873
1.0%, S 730
0.5%
S 1,545
S 815
na
Punchboards
0.3%II
275
0.0%1
1.2%
3,878
3,878
na
Pulltabs
80.1%!
80,770
89.8%I 66,427
26.4%'',
87,467
21,040
31.7%
Cardrooms
18.7%,
18,872
8.1%1 5,982
71.9%'
237,843
231,860
3875.7%
Bingo
0.0%
1.1%I 845
0.0%'
0
(845)
-100.0%
Total
1 100.0%: $
100,790
100.0%1 $ 73,985
100.0%'
$ 330,733
$ 256,748
347.0%
City of Federal Way April 1999 Monthly Financial Report
STATE SHARED REVENUES
1993.1999
1993,, ?�t1994 , 1995 1996 1997
� r .. Actual Actual .Adua/
A ftiiii a, .. T.Acteral„
:... "
Y998 1999''" _ 1999.Budg_et'
+ « a . .. f Varlancds
AeWal '' �-
Bud -pg 'Actual "'kt SVidarte
Motor Vehicle Excise Tax
$ 587,204 $ 635,57.8 $
637,121$
526,055 , $
447,339 $
474,066
$ 482,133
S 510 041 S
27,908
58%
Camper Excise Tax
i --
5,880 - 6,560
-
6,700
6,6281
-
6492'
6,689
-
6,661
-
6,825
- ,3
-.
-
164:
(2,357).
-
2.5%
--2.1°
LiquorProfitsTax
Liquor Excise Tax
q
12$2161-__-109,373,
129,337 125,422-- -
100,284
119,415-~---
97,9581
112,844
102169'
114,775.
116,124
119,070 I-
110,695
--
120,403 '
108,338,-
---- ~
124,354
-
----
!
-
3,951 1
3.3°
Crim Just Low-Pop/DCD
-- - -
72,531
- --
-
167,728
---- --
182,930
- i------
116,039
63,737
54,925
-
63,402
8,477
--
15.4°
T_
--'
Crim Just H h Crime
9
162,100 '
126,9871
134,661
127,603:
140,719 '
-
173,087
!-'--173,087
'
n
Equalization
q
315,276 ', 381,033. �
� --290,463
206,984 1
_-
186,054 ' -
-----
185,049
-
184,360
-- ---fi__--�-
197,937 1
13,577
--_-
7.4
Local Crim Just
319,774 1 341,1641
349,608
351,3851
396,533 `
426,347
427,593
457,945 1
3,352 1
7.1%
Fuel Tax
eh Lic Fees
487,795 11 532,401
182,829, 191,4751
520,427
-184,082
520,050
178,0281
528,569 '',
191,702
526,271
193,072
531,884
196.690---198,935
524,6201
(7,264)1
2,245''
-1.4°
1.1%
DUI -Cities
''", . ,,•ry u' y° ToW }y . <.,,�, . , . 2,608,848 i,.
2,iK� a
2.502,82^2,317,523:
,.„
."2,211,278, • ..'n 2,281.1M,; 2,115,314
10,9081
. :,2,376,392 ",';'a<'261,048
10,908
p
n
Canyelrmprforyear '• " 8.7%I
-3.9%!
e:,.7.4% :
6xa46%
.7.8X'.
1%"7%
a7
Na
Veh Lic Fees
STATE -SHARED REVENUES
1993-1999
■ Fuel Tax
k�s�,+ F
$3,000,000
$2,500,000
OCriminal
Justice
82,000,000
$1,500,000
❑Equalization
K¢'
$1,000,000
$500,000
2
■ Liquor
$-
C7CY)
V
u1 (O r- Co
d
Q
U
Q
®MVET
T
r
T
r
T T T
r r r �--•
0
rn
- 12
City of Federal Way April 1999 Monthly Financial Report
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
FINES AND FORFEITURES
YTD Through April
1991 1992 1993 1994 1995 1996 1997 1998 1999
='" 13
FINES & FORFEITURES
Budget `
$569,871
$599,488
$613,226
$639,830
5680,000 '1
'$714,000
1994
1995
1996
1997
1998
1999
1
Change from Adopted
Month
Actual
Actual
Actual
Actual
Actual
Budget
Actual
$Variance
%Variance
Jan
1 $35,198
--
$58,898
$50,642 !
$36,755 -
$60,696
--67,000
$50,540
-----
$64,790,
- _t
$14,251 j
--
28.2%
Feb -L
49,447
33,042
56,197
38,609
54,512
68,187.
13,674
25.1%
Mar
44,493.
38,296
47,205'
46,673
84,432'..
59,851
87,418
27,5671
46,1%
Apr
56,501
54,415
51,752
51,192,
57,881,
63,806
86,409
22,603
35.4%
May
51,202
49,764`
54,538
52,978'
73,670
62,101
Jun
----------
57,984'
--
56,220
46,6111
50,903
65,060.
63,881.
Jul
41,965
69,336
48681'
53,01-6---
81,6661
_ 61,299
'.
Aug54,319'
65,794
---48,268
---------
----
63,6501
65,748
63,2011
-
71 691
_-_
Se
Sep
53,235
35,218
--
56,748
--
72,363
-
58,952'
Oct
50,4501,
50,022'
-
41,486',
--�
--6.37
56'--
- -
74,815'1,
59,518'
-- -----
--------------.
Nov
46,0681
50,2811
33604
45,810,
57,001
55,1571 ---
-
----
Dec
44,828;
40,104
30,269
67,5901
33,3271
52,693
j
--_--
Total
$592,198
$607,932:
:560,053 '
$622,452
$791,112 -
$714,000
$306,804
$78,095
34.1%
%Change
7.9%
2.7%
-7.9%
11.1%
27.1%
-9.7%
Included in Fines b Forfeitures are remittances from District Court for *Shared Court Costs' and "Court Record Services'.
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
FINES AND FORFEITURES
YTD Through April
1991 1992 1993 1994 1995 1996 1997 1998 1999
='" 13
City of Federal Way April 1999 Monthly Financial Report
PERMIT/ZONING/PLAN CHECK FEES
IlBuilding 1991-1999
Permits
$200,000
w
$180,000 o
MPlan
$160,000
Check
Fees $140,000
$120,000
$100,000
Moning
$80,000
Fees
$60,000
$40,000
$20,000
ElElectrical
Permits $-
1991 1992 1993 1994 1995 1996 1997 1998 1999-Adp 1999 -Act
F-
14
'AIML&MG PERWTWONING FEES/PLAN CHECK FEES
1993-1999
1993 .
-.1094 A 11
1096 , :: ",
1996 1
.1997.,
1
4998 1999,
1999 Budget
1 4,' ,
i�Revepue .�Avi.
-Tli��.k,lop�" 1
Actual �;,. -�N%ctuai j
Actual
Adual N 1
-
- ---- •- - - ---
"V S i�d�-W
January
$ 33,708 $ 36.051 $ 48,383 $
26,306 ! $
59.934 $
54,8141: $
53,165 $ 77,561 $
24,396
45.9%
February
39,795
47,671 34,376
44,823
81,164
33,057
60,446 104.383,
43,937
72.7%
March
61�1 �171
30,950
48,297
95,791
45,879
77,897 148,530
70,633
90.7%
April
61,936
___�2,296
63,273 1 36,508 j
51.060
95,510
67,315
74,057 101,203
27.1461
36.7%
May
61,353
53,636 65,038
50,280
55,171
60,598
75,731
:4-
0.0%
June
56,643
39.732 69,015
65,217
57,030
106,758 j
87,461
-j
0.0%
July
50,760
36,428 1 60,208
64,655 i
50,474
144,686
78,077
0.0%
August
46.091
42.525 1 71,299
60,072
56,879
130,374
71,521
0.0%
September
j 67,66 58,683
37,509`61,053
92,585
75.143
---
--
0.0%
__1_55,870
October
59.489
-
38,4357 60,354
42,402
48,152
122,107
67,393
0'
November Nove
55,74
-T-43,435
70.370
45,163
11 �66A4
32.
100,067
62,480
-0
December
57,415
49,954 1 81,867
49,613
48,716
72,243 1!
69,822
01-06.,
0.0%
MMMMW
M52gg I�M553,401
Exp thru April"
575,151
.556 j
600.114
668,171
646,699
752,483 791,469
na
n
Recovery Ratio
34.2%�
37.6% 27.1%1
28.4%j
49.7%1
31.1%1
35.3%j 54.5%1
nal
nal
YTD Recovery Ratio
1 39.4%1
41.6%1 39.0%1
34.0%1
35.7%1
37.8%j
36.9%1 nal
PERMIT/ZONING/PLAN CHECK FEES
IlBuilding 1991-1999
Permits
$200,000
w
$180,000 o
MPlan
$160,000
Check
Fees $140,000
$120,000
$100,000
Moning
$80,000
Fees
$60,000
$40,000
$20,000
ElElectrical
Permits $-
1991 1992 1993 1994 1995 1996 1997 1998 1999-Adp 1999 -Act
F-
14
City of Federal Way April 1999 Monthly Financial Report
,:..
PERMITSJPLAN REVlEW/IXPED/TED REVlEW/lNSPECTION FEES
,.
,1
1993-1999
' ) •'
1893: "
1894
:,199i3� � :
�189Q I'
1997 ;
f 998 L--_..
.1999'
� 1999 Budget
Revenue
venue
...
Actual Actual ACtuaha i
Actual
Actual i
Actual
Budget . i•,'
-
Actual i s yaeianee I ^ s Variance
January
$ 1,855 I $
16,198 $
22,397 $
12,719 $
7,041 $
16,188 $
16,959 $
19,2931$
2,334
13.8%
February2,403
----
-3,790
10,580 '
6,797 _; _
23,627
8,583 '
8,437
13,802
19,402 $
5,600
40.6%
March
j
8,826;
11,568 '�,
10,708
26,504'
12,347
15,722
43,177 $
27,455 ,
174.60
April
-- -- --
18,496
---4,163
25,439
11,224
-
9,079
19,977
24,592
-
16,849 $
(7,743
- - -- -
-31.5%
May
--
j
-
6,955 �
_14,751
18,991
21,158
9,551
26,621
17,954
---
i
0.0%
%
June
--
2,472 1
39,839 j
7,131 j
--
8,283
-
9,977
-- -
26,339
-
21,273
'---
0.0%
-
Jul
16,366
8,374
9,726
29,676
12,353
21,002
19,635
r
----
----
0.0%
August
12,419 j
19,584
9,339
18,645
27,438
34,634
25,914
0.0%
Se ----
September
6,583 i
--
9,997 ''�
9,006 '
15,252 �
-.
19,191
�
0%
0.0
October -
- 35,280
32,125 !
( )
22,059 I
14,041 --
049
15,049
1--
32,348
13,147
-
0.0°
November
7,947
11,036
27,799
13,524 1
18,019!
33,531
20,759
_-
0.0%
December -
- 7,193
20,147
22,638
14,832 1
19,049
32,460
22,623
-------
0.0%
Monthly Average
9,9141
12,0711
14,8901
16,4351
15,7351
25,5351
19,2981
8,2271
2,3041
n
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
Permits/Plan Review/Expedited Review/Inspection Fees
Through April
1993 1994 1995 1996 1997 1998 1999- 1999-
Adp Act
15
■Zoning/Subdiv Fees
13PW Expedited Plan Review
El PW Inspection Fees
®Plan Review Fees
■ROW Permits
ATTACHMENT A
CITY OF FEDERAL WAY
SUMMARY OF SOURCES AND USES
OPERATING FUNDS
Through April
1994-1999
Note! i t:psp expenditures occkir pnrnan'y d:uino ttiewinter months
co 5219910:12 AM
Actuals
1999 Revised Budget Actuals Variance
1
Through Through Favorable (Unfavorable)
Sources/Uses
1994 I 1996 1996 1997 1998
j Annual April April Dollars (S) I Percent r
Beginning Fund Balance
$12,181,738
$11,403,627
$10,331,641
$10,396,188
$16,128,342
$17,264,368
$17,264,368
$ 17,264,368
$ -
0.0%
Operating Revenues
Property Taxes
817,464
871,600
1,606,134
1,548,061
1,465,766
6,634,350
2,459,736
2,459,736
(0)
0.0%
Sales Tax
2,555,380
2,713,007
2,712,707
2,749,378
2,878,375
8,605,426
2,877,973
3,075,322
197,349
6.9%
Hotel/Motel Lodging Tax
-
-
-
65,000
-
-
-
n/a
Criminal Justice Sales Tax
341,164
349,608
351,385
396,533
426,347
1,362,747
427,593
457,945
30,352
7.1%
Intergovernmental
1,580,885
1,514,432
1,330,879
1,196,408
1,349,715
4,576,430
1,751,250
1,918,447
167,196
9.5%
Real Estate Excise Tax
590,229
291,943
354,772
475,230
531,326
1,200,000
332,232
639,592
307,360
92.5%
Gambling Taxes
69,828
113,845
154,500
138,264
91,739
509,600
293,950
390,252
96,302
32.8%
Utility Taxes
-
135,770
1,027,592
1,718,692
4,633,769
1,699,701
1,885,997
186,296
11.0%
Fines & Forfeitures
185,639
184,651
205,796
173,230
270,009
714,000
228,709
306,804
78,095
34.1%
Building Permits/Fees-CD
199,291
150,217
170,486
328,966
201,066
853,193
265,565
406,553
140,988
53.1%
Pass Through Fees -CD
-
-
25,124
25,124
n/a
ROW Permits/Fees-PW
61,043
51,986
61,805
51,208
56,949
239,573
71,076
91,163
20,087
28.3%
Pass Through Fees -PW
-
-
-
7,558
7,558
n/a
Licenses
30,097
33,761
31,363
33,045
24,356
123,201
49,317
71,341
22,024
44.7%
Franchise Fees
181,099
186,359
98,171
222,980
333,089
494,255
226,972
220,578
(394)
-0.2%
Recreation Fees
131,657
122,089
131,179
132,298
152,899
501,343
152,572
186,636
34,063
22.3%
Dumas Bay Centre
24,992
65,393
73,330
74,782
99,977
429,609
114,597
150,254
35,656
31.1%
Knutzen Family Theatre
-
-
-
59,030
19,677
9,069
(10,608)
-53.9%
Interest Earnings
73,110
39,716
54,444
109,046
174,709
1,040,139
117,966
374,332
;,.256,366
217.3%
Admin Fee -SWM & Solid Waste
-
50,128
51,632
54,245
55,330
168,478
56,159
58,581
2,422
4.3%
SWM Fees
295,588
274,822
204,949
407,999
485,544
3,120,302
359,900
389,255
29,356
8.2%
Refuse Collection Fees
49,612
49,916
48,091
48,350
49,109
148,524
49,508
37,320
(12,188)
-24.6%
Police Services
38,939
40,540
138,432
17,187
144,625
127,439
741.5%
Other
32,138
10,456
29,483
138,192
219,110
139,765
9,050
33,570
24,520
270.9%
Total Operating Revenues
742119,216:1-::17A73,929
7,806,876
i 9,344;796
10;624,647
:.36,767,166
11;674,692
13,340,064
1;766,362
1613%
Operating Expenditures
City Council
96,894
89,078
88,532
96,550
99,062
219,841
113,774
113,179
595
0.5%
City Manager
165,681
121,489
158,284
208,600
205,560
587,110
200,870
214,282
(13,412)
-6.7%
Municipal Court -Start up
-
-
8,748
(8,748)
n/a
Management Services
383,761
449,511
502,135
472,137
446,484
1,947,613
525,131
519,703
5,428
1.r -
Civil Legal Services
85,851
129,164
152,843
168,666
173,017
522,356
169,685
230,905
(61,219)
-36.
Criminal Legal Services
139,331
142,898
164,286
156,199
264,108
1,210,809
341,725
311,416
30,308
8.b,.
Comm. Developement Services
1,227,264
1,336,363
894,071
927,043
736,212
3,048,376
1,026,422
985,844
40,578
4.0%
Police Services
2,794,678
2,696,765
2,814,556
3,204,186
3,727,873
12,049,356
4,087,151
4,032,615
54,536
1.3%
Jail Services
201,572
135,576
161,368
205,559
196,986
875,000
243,676
277,962
(34,286)
-14.1%
Parks & Recreation
989,408
891,168
1,022,001
822,111
679,509
3,065,364
953,574
859,293
94,281
9.9%
Public Works
874,901
631,973
765,710
866,845
948,982
3,444,273
939,456
890,943
48,513
5.2%
City Overlay Program
234
2,745
38,877
88,155
2,018,311
18,554
18,554
-
0.0%
Snow & Ice Removal (1)
-
23,838
15,490
50,364
24,449
55,076
10,978
5,559
5,419
49.4%
Solid Waste
42,383
40,556
49,172
85,746
74,505
299,727
59,742
61,019
(1,277)
-2.1%
Hotel/Motel Lodging Tax
-
-
-
-
-
65,000
n/a
Surface Water Management
335,925
350,248
461,464
526,715
472,180
1,749,884
549,785
482,535
67,249
12.2%
Debt Service
1,101
2,006
3,123
2,183
2,184
5,293,482
6,232
102
6,131
98.4%
Dumas Bay Centre
57,565
84,348
106,226
124,761
125,559
467,436
138,363
152,091
(13,728)
-9.9%
Knu!zpn Family Theatre
159.030
53,010
1 32 652
20.358
384%
Total Operating Expenditures
7,396,649
I 7,124,981
1 7,362,006 7,966,642 1 8,464,826
37,078,044
9,438,129 ! 9,197,402
1 240,726 1 2.6%
Operating Revenues overi(under) 1
;
Operating Expenditures (177,333)i (61,062); 444,869 1,388,203 i 2,169,821
(1,320,878):' 2,136,663
4,142,662 ; 2,006,088 I 93.9%
Other Financing Sources
-
-
-
112,418
1,843,700
6,093,596
1,329,366
1,329,366
0.0%
Other Financing Uses
1,461,177
335,916
807,669
294,619
1,403,257
9,133,355
3,525,592
3,525,592
0.0%
Ending Fund Balance
Solid Waste
111,484
188,505
213,050
296,991
294,316
285,378
275,441
n/a
n/a
Snow & Ice
191,274
103,239
73,358
103,530
100,000
100,251
n/a
n/a
Arterial Street
1,563,848
971,893
362,100
470,902
477,375
-
1,605,571
n/a
n/a
Utility Tax
-
-
-
2,120,030
2,847,359
2,887,854
n/a
n/a
SWM
2,016,324
1,702,890
1,077,666
1,566,522
2,276,459
1,321,384
(32,269)
n/a
n/a
Path &Trails
29,109
39,284
50,210
6,153
12,555
21,598
15,447
n/a
n/a
Strategic Reserve
2,150,560
2,104,645
2,050,477
2,022,389
2,025,496
2,000,000
2,023,342
n/a
n/a
Debt Service
1,657,809
1,936,991
1,618,909
2,986,805
5,283,482
4,447,344
6,136,281
n/a
n/a
Dumas Bay Centre
562,661
157,897
115,131
83,742
13,286
(0)
39,739
n/a
n/a
Police
1,031,439
-
1,082,207
786,441
669,334
748,150
n/a
r"
P3
-
-
300.000
300.000
300,000
300,000
n/a
r
Interfund Loans
60,000
10,000
10,000
10,000
10,000
10,000
n/a
n/a
Unreserved
2,391,433
2,681,841
4,377,959
2,703,121 1
3,532,267
1,422,807
5,090,988
n/a
n/a
Total Ending Fund Balance 1
$10,643,228 1
$11,016,669 1
$ 9,968,741 - $11,602,190 - $17,236,237 1
$13,426,203 1
$17,194,706 !
S 19,200,796:
$ 2,006,088
Note! i t:psp expenditures occkir pnrnan'y d:uino ttiewinter months
co 5219910:12 AM
MEETING DATE: June 1, 1999ITEM#
CITY OF FEDERAL WAY
City Council
AGENDA ITEM
SUBJECT: VOUCHER
.............................................................................................................
CATEGORY:
_X—CONSENT
_ORDINANCE
_BUSINESS
_HEARING
FYI
_RESOLUTION
_STAFF REPORT
_PROCLAMATION
_STUDY SESSION
OTHER
ATTACHMENTS: VOUCHER LIST
.........................................................................................
BUDGET IMPACT:
Amount Budgeted: $ 1,502,964.55
Expenditure Amt: $ 1,502,964.55
Contingency Reqd:
SUMMARY/BACKGROUND:
I, the undersigned, do hereby certify under penalty of perjury that the materials have been furnished, the services
rendered, or the labor performed as described herein and that the claims are just and due obligations against the City
of Federal Way, Washington, and that I am authorized to authenticate and certify to said claims.
Management Services Director
...............................................................................................................................................................................................
CITY COUNCIL COMMITTEE RECOMMENDATION:
Approve attached voucher pursuant to RCW 42.24
.................................................................................................................................
CITY MANAGER RECOMMENDATION:
APPROVED FOR INCLUSION IN COUNCIL PACKET:
(BELOW TO BE COMPLETED BY CITY CLERK'S OFFICE)
COUNCIL ACTION:
COUNCIL BILL #
_APPROVED ORDINANCE #
_DENIED FIRST READING
_TABLED/DEFERRED/NO ACTION ENACTMENT READ
RESOLUTION #
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