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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. 5/14/99 9:26 AM k:\finance\fincommt\1999\0323meet\0427_MIN 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? 5/14/99 9:26 AM� k:\finance\fincommt\1999\0323meet\0427_MIN ♦ 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 5/14/99 9:26 AM 13 k:\finance\ftncommt\1999\0323meet\0427_MIN 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 -L� - C -T - Ahw1i 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 ................................................................................................................................. 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