HomeMy WebLinkAbout06-07-21 Council Meeting
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CALL TO ORDER
Mayor Barb Tolbert
PLEDGE OF ALLEGIANCE
ROLL CALL
Mayor Barb Tolbert – Wendy
APPROVAL OF THE AGENDA
Mayor Pro Tem Jesica Stickles
INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS
Judge Jennifer Rancourt, Snohomish County District Court, Cascade Division
Update on transition from Marysville Court to Cascade Court
Introduced by Mayor Barb Tolbert
PROCLAMATIONS
PUBLIC COMMENT
For members of the public who wish to speak to the Council about any matter not on the Public Hearing
portion of the meeting. Please limit remarks to three minutes.
CONSENT AGENDA
Mayor Pro Tem Jesica Stickles
1. Minutes of the May 17 and May 24, 2021 Council meetings ATTACHMENT A
2. Accounts Payable:
Approval of EFT Payments and Claims Checks #102844 through #102975
dated May 18, 2021 through June 7, 2021 for $1,220,730.48.
3. Relocation of PUD pole and conduit at 40th Ave and 172nd St ATTACHMENT B
Arlington City Council Meeting
Monday, June 7, 2021 at 7:00 pm
PUBLIC HEARING
NEW BUSINESS
1. Request for transfer of funds to 2021 art projects ATTACHMENT C
Staff Presentation: Sarah Lopez
Council Liaison: Marilyn Oertle
2. Permit fee waiver for art project ATTACHMENT D
Staff Presentation: Sarah Lopez
Council Liaison: Marilyn Oertle
3. Resolution regarding the annexation of properties known as ATTACHMENT E
the Lindsay Annexation
Staff Presentation: Marc Hayes
Council Liaison: Mayor Pro Tem Jesica Stickles
4. Resolution adopting revised financial policies ATTACHMENT F
Staff Presentation: Kristin Garcia
Council Liaison: Mayor Pro Tem Jesica Stickles
COMMENTS FROM COUNCILMEMBERS
INFORMATION/ADMINISTRATOR & STAFF REPORTS
MAYOR’S REPORT
EXECUTIVE SESSION
Discussion of pending or potential litigation [RCW 42.30.110(1)(i)]
City Attorney Steve Peiffle
RECONVENE
ADJOURNMENT
Mayor Pro Tem Jesica Stickles / Mayor Barb Tolbert
DRAFT
Page 1 of 3
Council Chambers 110 East Third Street May 17, 2021
Councilmembers Present: Mike Hopson, Michele Blythe, Jan Schuette, Marilyn Oertle, Jesica Stickles, Debora Nelson, and Don Vanney.
Council Members Absent: None.
Staff Present: Mayor Barb Tolbert, Paul Ellis, James Trefry, Kristin Garcia, James Kelly, Tony Orr, City Attorney Steve Peiffle, and Ashleigh Scott.
Also Known to be Present: Nineteen YouTube viewers. Mayor Barb Tolbert called the meeting to order at 7:00 p.m., and the Pledge of Allegiance and roll call followed.
APPROVAL OF THE AGENDA Mayor Pro Tem Jesica Stickles moved to approve the agenda as presented. Councilmember Marilyn Oertle seconded the motion, which passed with a unanimous vote.
INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS None
PROCLAMATIONS The National EMS Week proclamation was ready by Councilmember Marilyn Oertle. The National Public Works Week proclamation was read by Councilmember Debora Nelson.
PUBLIC COMMENT None.
CONSENT AGENDA Mayor Pro Tem Jesica Stickles moved and Councilmember Jan Schuette seconded the motion to approve the Consent Agenda that was unanimously carried: 1. Minutes of the May 3 and May 10, 2021 Council meetings 2. Accounts Payable: Approval of EFT Payments and Claims Checks #102731 through #102843 dated May 4, 2021 through May 17, 2021 for $1,004,782.30; and Approval of Payroll EFT Payments and Checks #30081 through #30086 dated April 1, 2021 through April 30, 2021 for $1,580,800.19 3. Change Order #2 for Fire Station 48
Minutes of the Arlington
City Council Zoom Meeting
Minutes of the City of Arlington City Council Meeting May 17, 2021
Page 2 of 3
4. Resolution Declaring Used Information Technology Equipment as Surplus and Authorizing Their Sale 5. Change Order #4 for 204th Street Roundabout
PUBLIC HEARING None.
NEW BUSINESS
Low Bid Award for 173rd Street, Phase 1 Public Works Director James Kelly reviewed the low bid tabulation for the 173rd Street Phase 1 project and award of the project to the low bidder. Councilmember Jan Schuette moved and Mayor Pro Tem Jesica Stickles seconded the motion to award the 173rd Street Phase 1 project to Reece Construction in the amount of $2,135,740.19, and authorized the Mayor to sign the construction contract. The motion passed unanimously.
Supplement #1 to the SCJ Alliance Contract for Island Crossing Roundabout Design Public Works Director James Kelly reviewed the Supplement #1 to the existing contract with SCJ Alliance for the SR 530 Island Crossing Roundabout project. Councilmember Jan Schuette moved and Mayor Pro Tem Jesica Stickles seconded the motion to approve Supplement #1 to the SCJ Alliance contract for design services for the SR 530/Island Crossing Roundabout project, and authorized the Mayor to sign the contract supplement. The motion passed unanimously.
Resolution to Amend the Cemetery Fee Schedule Public Works Director Jim Kelly reviewed the Cemetery Board recommended changes to the Cemetery Fees and Cemetery Rules. Councilmember Debora Nelson moved and Councilmember Marilyn Oertle seconded the motion to approve the changes to the Cemetery Rules and amendment to the City Fee Resolution, as recommended by the Cemetery Board, and authorized the Mayor to sign the Resolution. The motion passed unanimously.
Modification to the Salary Schedule for Non-Represented Employees for 2021 Administrative Services Director James Trefry reviewed the modification to the salary schedule for non-represented employees for 2021. Mayor Pro Tem Jesica Stickles moved and Councilmember Marilyn Oertle seconded the motion to approve the modification to the salary schedule for non-represented employees for 2021. The motion passed 6 to 1, with Councilmember Mike Hopson voting no.
COMMENTS FROM COUNCILMEMBERS Councilmember Don Vanney stated that this last weekend Arlington Main Street Cruises had a good turnout. He also wants to have a further discussion regarding the crosswalks near Arlington Hardware, and the safety of the community trying to cross the streets.
Minutes of the City of Arlington City Council Meeting May 17, 2021
Page 3 of 3
City Administrator Paul Ellis stated he would discuss the matter with the traffic engineers, and bring back for further discussion in the future. Councilmember Mike Hopson provided information from the National League of Cities regarding affordable housing. Councilmember Marilyn Oertle commented on crosswalk concerns, as well.
ADMINISTRATOR & STAFF REPORTS City Administrator Paul Ellis stated that the Governor has set a date for the state to reopen after the COVID-19 pandemic, with City offices reopening July 6, 2021. The City is in the process of preparing safety precautions. More information will be coming in the next few weeks. He is also asking employees and visitors to continue wearing masks indoors.
MAYOR’S REPORT None.
EXECUTIVE SESSION None.
ADJOURNMENT With no further business to come before the Council, the meeting was adjourned at 7:33 p.m. _________________________________________ Barbara Tolbert, Mayor
DRAFT
Page 1 of 3
Monday, May 24, 2021
Councilmembers Present: Mike Hopson, Marilyn Oertle, Debora Nelson, Don Vanney, Jan Schuette, Jesica Stickles and Michele Blythe.
Council Members Absent: None.
Staff Present: Mayor Barb Tolbert, Paul Ellis, Sarah Lopez, Kristin Garcia, Jonathan Ventura, Jim Kelly, Marc Hayes, City Attorney Steve Peiffle, and Wendy Van Der Meersche.
Also Known to be Present: Eight YouTube viewers.
Mayor Barb Tolbert called the meeting to order at 7:00 pm, and the Pledge of Allegiance and roll call followed.
APPROVAL OF THE AGENDA Mayor Pro Tem Jesica Stickles moved to approve the agenda as presented. Councilmember Marilyn Oertle seconded the motion, which passed with a unanimous vote.
INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS None.
WORKSHOP ITEMS – NO ACTION WAS TAKEN
Request for transfer of funds to 2021 art projects Community Engagement Director Sarah Lopez reviewed a request for a transfer from the Public Art Fund to support 2021 art projects. The current amount in the Public Art fund is $242,365. Staff is requesting a transfer of $34,000 from the Public Art Fund to support the 2021 Peace Plaza art project, and additional art projects that are ready to implement; sculpture repair, completion of art project from 2020, and creation of winter art banners for Smokey Point poles. This request is in addition to the original 2021 budget of $65,000. There is currently $242,365 in the Public Art Fund. Discussion followed with Ms. Lopez answering Council questions.
Relocation of PUD pole and conduit at 40th Ave and 172nd St Public Works Director Jim Kelly reviewed the proposed installation of a new PUD power pole and relocation of underground conduit cable as part of the 40th Ave. and 172nd St. Intersection Project.
Minutes of the Arlington
City Council Zoom Workshop
Minutes of the City of Arlington City Council Workshop May 24, 2021
Page 2 of 3
Development and associated transportation growth in Smokey Point is at the point where improvements are needed between Smokey Point Blvd and 43rd Ave to facilitate traffic movement, increase traffic safety, and provide for safe pedestrian crossing. The City received a grant from the Washington State Transportation Improvement Board for installation of a signal at 40th Ave, installation of ADA compliant crosswalks, installation of bus pull-outs, and installation of a solid median between Smokey Point Blvd and 43rd Ave to eliminate all left turn movements. This work requires the relocation of Snohomish County PUD utility poles and all associated electric and communication cables on those poles. This estimate is for the PUD relocation design and field work. Discussion followed with Mr. Kelly answering Council questions.
Resolution regarding the annexation of properties known as The Lindsay
Annexation Community and Economic Development Director Marc Hayes reviewed a request to consider acceptance of the 60% Petition to Annex for Lindsay Annexation and approve the resolution setting the date for a public hearing for the proposed annexation. A 60% Petition for Annexation has been submitted for approximately 97.8 acres located south of 172nd Street NE/SR 531 between SR 9 and the future alignment of 75th Avenue NE, of which approximately 71.44% of the total assessed value is owned by the proponents. The properties are within the City Urban Growth Area (UGA), and the current City limits abuts the proposed annexation area to the Northern and Eastern boundaries. The City’s Comprehensive Plan designates the area as Residential Ultra Low Capacity with a Master Plan Neighborhood Overlay. The zoning map pre-zones this area with the same designations. Discussion followed with Mr. Hayes answering Council questions.
Resolution adopting revised financial policies Finance Director Kristin Garcia reviewed revisions to the financial policies. Staff is proposing an update to the City’s financial policies to align with federal and state regulations and industry standards. A full description of the updates is in the Executive Summary section of the financial policies draft. Discussion followed with Ms. Garcia answering Council questions.
April 2021 financial report Finance Director Kristin Garcia reviewed the May 2021 financial report. Discussion followed with Ms. Garcia answering Council questions.
Discussion regarding Wheeled All-Terrain Vehicles (WATVs) Police Chief Jonathan Ventura reviewed Wheeled All-Terrain Vehicles (WATVs), with the use of a PowerPoint presentation. Snohomish County passed an Ordinance allowing Wheeled All-Terrain Vehicles (WATVs) to operate on County roads at 35 mph or less, with other local cities passing ordinances, as well. With WATV tourist routes established in Snohomish County, there was a request from John Graham, President of the Northwest Quad Association, that Council adopt an ordinance allowing WATVs to operate within Arlington city limits, so routes can be extended and connected. Discussion followed with Chief Ventura answering Council questions.
Minutes of the City of Arlington City Council Workshop May 24, 2021
Page 3 of 3
ADMINISTRATOR AND STAFF REPORTS None.
MAYOR’S REPORT None.
COMMENTS FROM COUNCILMEMBERS Councilmember Jesica Stickles questioned whether a discussion regarding the York property would be coming forward at a future workshop. City Administrator Paul Ellis stated it would. Councilmember Mike Hopson stated he is still interested in having Chris Collier, from Alliance for Affordable Housing, speak at a future Council meeting. Community and Economic Development Director Marc Hayes stated that he will arrange that.
COUNCILMEMBER REPORTS Councilmembers had nothing to report this evening.
PUBLIC COMMENT None.
REVIEW OF CONSENT AGENDA ITEMS FOR NEXT MEETING Council discussed and agreed to place the following item on the Consent Agenda for the June 7, 2021 Council meeting:
Item No. 2. Relocation of PUD pole and conduit at 40th Ave and 172nd St.
EXECUTIVE SESSION None.
ADJOURNMENT With no further business to come before the Council, the meeting was adjourned at 9:06 p.m. _________________________________________ Barbara Tolbert, Mayor
City of Arlington Council Agenda Bill Item: CA #3 Attachment B
rdincrease traffic safety and provide for safe pedestrian crossing. The City received a grant from the Washington State Transportation Improvement Board for installation of a signal at 40th Ave, installation of ADA compliant crosswalks, installation of bus pull-outs, and installation of a solid median between Smokey Point Blvd and 43rd Ave to eliminate all left turn movements.
th nd
Yasamin Zadehgol (425) 783 5592 Operations (O2)
ACCOUNT #
CITY OF ARLINGTON
EXPIRES
ACCOUNT #CONTRACT #QUOTE DATE EXPIRES CONNECT #PROPERTY
Notes:
DESIGNER INFORMATION
DESCRIPTION
Crew Labor
Materials/Coded Stock
Vehicle and Transportation
Engineering
Land/Easements/Permits - POTHOLING -
Admin and General Overhead
Deposit
QUOTE
DATE
4/15/2021
Yasamin Zadehgol (425) 783 5592 Operations (O2)
QTY
1
Total
Providing quality water, power and service at a competitive price
Toll-free in Western Washington at 1-877-783-1000, ext. 8272 FAX (425) 783-8650 www.snopud.com
$83,449.00
7/14/2021
TOTAL
83,449.00
83,449.00
UNIT COST
4/15/2021
ATTN:
If amounts set forth above were paid for the PUD to permanently connect a new single-phase secondary service at the service address(es) indicated, this is also a receipt for all interest in any customer installed secondary service conductor, intended to be
maintained by the pud, between the PUD's primary distrubution system and the delivery point. Ownership of this conductor is transferred and conveyed to satisfy a condition required by the PUD's Line Extenion Regulations for receiving electric utility service.
7/14/2021
QUOTE
CITY OF ARLINGTON
WORK ORDER #
36,582.00
30001596
SALES ORDER #
83,449.00
8,294.00
13,058.00
13,754.00
1,320.00
10,441.00
Subtotal
30001596
30001596
-
Mail Remittance to: PO Box 1100 Everett, WA 98206
snopud.com
AMOUNT OF QUOTE
Return this statement with cash or check payment
Public Utility District No. 1 of Snohomish County
CUSTOMER SERVICE CONTRACT
1474 REV 5/16
Date: 4/15/21
Describe work location and work to be performed: PUD pole & UG cable/conduit relocation (reimbursable) for City
of Arlington’s 172nd St NE road improvement project
CUSTOMER AUTHORIZATION and COMMITMENT: I authorize Public Utility District No. 1 of Snohomish County (the “District”)
to perform the work described above and agree to pay the estimated amount within 15 days from the date of this contract and
prior to the District scheduling any work to be performed. I understand that the District estimated amount is subject to the
following conditions: expiration 6 months after the date in the upper right-hand corner of this contract; PUD construction starting
within six months of that same date; PUD construction performed in one set period of time and not broken into phases at my, my
agent’s or my contractor’s request. If any of these conditions are not met, the PUD reserves the right to provide a new
estimated amount. I understand that other assumptions for the cost estimate are in the attached customer letter. I agree to pay
the new estimated amount and/or any cost increases occurring because the above stated conditions could not be met. I agree
to Time and Materials as the basis for the District’s charges, I also agree to pay any actual costs of construction that are greater
than the Estimated Amount within 30 days from the date of the District’s invoice. If I fail to make such payment, the District may
assign my debt to a collection agency and a collection agency fee will be added to the amount of the debt assigned, as
authorized by Section 19.16.500 of the Revised Code of Washington. If suit is brought, I promise to pay, in addition to the
collection agency fee, a reasonable attorney fee and court costs. This contract shall be governed by the laws of the State of
Washington with venue of any litigation in Everett, Snohomish County, Washington.
Estimated Amount: $ 83,449 Date Paid: Receipt #
BILLING INSTRUCTIONS:
Time and Materials (actual costs): When all job costs have been accumulated, refund or invoice the customer any
differential between the actual and estimated costs.
CUSTOMER INFORMATION:
Charge to: CITY OF ARLINGTON PUBLIC WORKS Authorization (P. O. Number):
Address: 238 N OLYMPIC AVE Authorized by: BARBARA TOLBERT
City/State/Zip: ARLINGTON/WA/98223 Print Name & Title: BARBARA TOLBERT, MAYOR
CITY OF ARLINGTON
Attention: KRIS WALLACE Telephone Number: 360-403-3421
DISTRICT APPROVALS:
Requested by: YASAMIN ZADEHGOL Date: 4/15/21
Approved by: Date:
ERIN BURKE, Mgr Distribution Engineering Services
WORK ORDER: 100077298 TASK: 0030/0060 BILLING AGREEMENT:
Distribution:
* 1 Original to General Accounting
* 2nd Original to Customer after District signature and approval
City of Arlington Council Agenda Bill Item: NB #1 Attachment C COUNCIL MEETING DATE: June 7, 2021 SUBJECT: Request for transfer of funds to 2021 art projects ATTACHMENTS: Project requests and status of 2021 projects, future potential projects, art maintenance schedule, and the Art of Arlington inventory slideshow. DEPARTMENT OF ORIGIN Administration; Sarah Lopez, Community Engagement Director 360-403-3448 EXPENDITURES REQUESTED: $34,000 transfer from Public Art Fund to 2021 Art Project Budget BUDGET CATEGORY: Public Art Fund BUDGETED AMOUNT: LEGAL REVIEW: DESCRIPTION: The current amount in the Public Art fund is $242,365. Staff is requesting a transfer of $34,000 from the Public Art Fund to support the 2021 Peace Plaza art project, and additional art projects that are ready to implement; sculpture repair, completion of art project from 2020, and creation of winter art banners for Smokey Point poles. HISTORY: This request is in addition to the original 2021 budget of $65,000. There is currently $242,365 in the Public Art Fund. ALTERNATIVES: Do not approve the request for additional funds. RECOMMENDED MOTION: I move to approve additional art funding for the projects, as presented, in the amount of $34,000.
Project Original
request
AAC Match Current
quote
additional
request
explanation
Peace Plaza 30,000$ 10,000$ 55,000$ 15,000$
Globe
new request $4,000 $4,000
Dancing Bears 2020 project $9,000 $9,000
Smokey Point light poles
34,000$
Status of 2021 Art Projects
vandalized, could be
remade with different
base material by
professional artist.
Cost for plaza/concrete
install is $33,000, pole
$5,500, tiles $15,000
completed by artist in
2020. These would be
located in city hall
parking lot
bulbouts/entrance.
holiday banners with
shorter banners that
show better (tighter)
and will be unique,
designed by an artist.
The size will match the
spring/summer
banners, so staff won't
have to adjust brackets.
Request for Additional Art Budget for 2021
TYPE CONSTRUCTION PROJECT AREA TIMEFRAME-
from 2019
POSSIBLE ART ESTIMATED COST
Commercial Commercial Development in
Smokey Point
Behind Safeway
173rd
Street/SR 531 51st Ave NE
59th Ave NE
th
project Edgecomb area ($15,000 to $25,000
each)
204th and 77th
nd years designed by artist $20,000
Residential area, 250 units
From Strategic Art Plan 2019 page 29-30
Additional Potential Public Art Projects from Strategic Art Plan 2019 page 31
Below is a list of ideas that the Arlington Art Board and City Staff have discussed as potential art projects and estimated costs:
• Winter banners for 67th Avenue $10,000
• Mural of Retro Arlington Postcard - done
• Artistic benches for Airport Boulevard – in process, plus two more $20,000
• Obelisk Peace Pole at Centennial Trail near Haller Street – in process
• Wraps for metal utility/light signal boxes $5,000 each
• Skatepark mural - done
• Boys and Girls Club Mural $10,000
• Mosaic seating wall at Splash Pad $15,000
• Wayfinding signs
• Neighborhood signs
• Bike Racks $5,000 - $15,000
• Metal art banners $5,000- $15,000
• Chainsaw carved bench for Olympic and First Street sidewalk pad - done
• Sculptures for entry of City hall parking lot and other landscape areas in downtown (Dancing Bears)
• Mural on courtyard of Minifie building $20,000
• Median Art
New additions since 2019 plan
• Cemetery outbuilding mural (potential 2022 project) $10,000
• Fence art/beautification (Haller Park well fence, Centennial Trail Fence) $20,000-$50,000
• Skatepark- additional murals $10,000
• Haller Ave revitalization – mural on back of Grocery Outlet, neighborhood sign $25,000
• Bench for Smokey Point bus stop plaza at Senior Center “Wonderland” $10,000
• Haller Bridge continue nature theme sculptures on bridge $10,000
• Mural on 67th on building facing Gleneagle $20,000
• Alley art murals downtown $5,000
Strategic Art Plan: http://arlingtonwa.gov/DocumentCenter/View/2419/Public-Art-Strategic-Plan-2019-final
PUBLIC ART CITY OF ARLINGTON
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Murals
Westside & Streamlife Olympic Hill $500 wash wash wash wash wash wash wash wash
2004 Three Beauties (retired)merchant's parking lot $350 RETIRED
2004 Stilly Valley Victorian Cent. Trail 400 block $350 repair $325 wash wash wash
2003 Run of #7 Train Cent. Trail 300 block Done $750 wash wash wash
2013 Music Mural, print on metal (was wood)Cent. Trail, 1st St replaced wash wash wash
2012/17 Terrace Park stage Division ST washed NEW wash wash/repaint wash
2014 Mural on Water plant West Ave new sealed wash wash wash/repair
2015 Mural on Mike Nordines Centennial Trail at 3rd new wash wash
2016 Going to Ride Haller Park new seal $185 wash fix wash
2016 Dairy Queens on plywood Co-Op new wash Retire?
2017 Quilt Squares merchant's parking lot new wash (owner)repaint
2017 Terrace Park owl restroom and shelter new, seal $185 wash wash repaint?
2018 Duck Dash mural Haller Park new wash replace 10yr
2018 Train Quilt Block Depot at Legion Park new wash replace 10yr
2019 Community Garden mural French Ave new
2020 Skatepark mural Quake Park new inspect wash
2021 Postcard metal print mural- Arlington downtown new
2021 Postcard metal print mural - Smokey Point Stilly Valley Connections new
Sculptures
2003 Time Capsule- steel/concrete/glass Legion Park wash wash needs repair wash
2004 Salmon Spawning bench- granite Cent. Trail, Division St wash wash wash
2005 Dedicated Beauty of Earth- Stone Cent. Trail 400 block wash wash wash
2009 Flat Tire-metal Legion Park wash
2007 Center of the Universe- basalt column City Hall wash
2007 council of fish- ceramic on city hall
2006 Norwegian Story Pole- wood- RETIRED Cent. Trail 400 block refinish removed
2007 Grandfather Bear- Stainless steel Cent. Trail 400 block wash wash wash
2008 Raven Captures sun- stainless steel Cent. Trail 500 block wash wash wash
2011 Waterline- granite Lebanon Park wash wash wash
2011 Eagle -bronze Council Chambers
2011 Bear and Eagle- wood carving east roundabout, Div.refinish refinish replace?
2011 Eagle- wood carving west roundabout, Div.refinish refinish replace?
2012 mosaic quilt square Legion light wash wash
2012 Spider bike rack-metal Skatepark
2014 Rooted Embrace- steel Cent. Trail 300 block wash
2015 Kent Baker bench Legion Park new wash wash
2015 Osprey- metal on bridge Haller Park new
2016 Bell on Centennial Trail Centennial/Lebanon new lumber/inspect
2016 Salmon Pole metal fish on wood pole Kent Prairie area new
2016 Embraced by Love tile globe Legion Park new repaired wash needs Repair
2016 Fish pole- plywood fish Legion Park new fish retire?
2017 Granite Frog Haller Park wash wash wash
2018 Rip Rap Sculpture City Hall Plaza new wash
2018 Steelies fish art 67th Ave medians new wash
PUBLIC ART MAINTENANCE SCHEDULE
PUBLIC ART CITY OF ARLINGTON
2019 bench Pause, granite Arlington Valley RD new wash
2019 bench Ottoman, granite Arlington Valley RD new wash
2019 Cougar Bench- wood, stained Olympic Ave at 1st Street new stain stain
2020 Going with Flow Sculpture, granite Airport Blvd. new wash
2021 Airport Blvd bench Airport Blvd at Fire station new wash
2021 AeroVane stainless steel sculpture Airport Office landscape new inspect inspect
2021 Rock Cradled metal sculpture Centennial Trail 400 block new
2020 Tractor at roundabout 204th St/Olympic Place new
2021 Leaping Bunnies Division St/Olympic Ave new wash
Gateway signs
2011 Gateway sign-ceramic fish SR530 Island Crossing wash washed washed 5-21 wash wash wash
2013 Gateway sign- Raven-corten metal 172nd at Smokey Pt wash washed washed 5-21 wash wash wash
2013 Gateway sign- Deer-powdercoat metal SR 9 at 172nd wash washed washed 5-21 wash wash wash/paint?
2014 Gateway sign-horse-powdercoat metal SR 9 at Burke wash washed washed 5-21 wash wash wash/paint?
2014 Gateway sign- heron- painted metal SR 530 at Twin Rivers wash washed washed 5-21 wash wash wash/paint?
Other
1989 Centennial Fountain- mixed media Centennial Park repaired repair?repair
2008 Labyrinth- stone walk Lebanon Park maint.maint.maint.maint.maint.maint.maint maint.maint.maint.maint.
2014 Haiku poems- stamped concrete 67th Ave wash wash wash
2014 Birds- ceramic mosaics 67th Ave wash wash wash
2012-13 Sound garden- music instruments-Cent. Trail at 1st St.mallets mallets mallets mallets parts mallets mallets mallets mallets parts mallets
2006 Banners downtown replaced replace
2011 Banners 67th new replace
2017 Banners Smokey point new new replace
2008 glass in gazebo replaced 1 pane
2017 Mile Markers Mosaic new wash wash
2018 Haiku rocks Terrace new
2018 Mini Electric City' Utility box Legion Park new wash/repair
2019 Garden Shed new French Ave
2019 Library Shed new Washington Ave
PUBLIC ART CITY OF ARLINGTON
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Vandalism estimates $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Maintenance estimates $1,200 $2,500 $3,000 $2,500 $4,000 $4,000 $3,000 $3,000 $2,500 $2,500 $4,000
Actual budget 576-80-48-01 0 $0 $0 $0 $2,000 $2,500 $2,500 $2,500 $2,500
Amount Spent $1,075 $624 $951 $2,195 $2,660 $1,668
Actual maintenance projects (yellow above and explained below)
is actual work done
2014 Clean, repair and seal murals-contractor, Harry Engstrom
2015 Clean, repair and seal murals- contractor
2016 Embraced by Love repair seal- staff
2016 Norwegian Story Pole refinished- volunteers
2017 plaques for Dairy Queens, Going for Ride, Centennial Tiles
2019-11 staff wash gateway signs
2019 Olympic Ave mural-Harry Engstrom, seal, wash $425
2019 Owl mural graffiti, repaired by artist no charge
Sealer per Harry: Sherwin Williams B97 C150, thin with 40% paint thinner
2020/21 Repair Globe/Embraced by Love-vandalism to tiles
2020/21 Repair milkcan vandalism to tiles
2021 new art plaques (granite instead of metal)
2021 Bike mural at Haller- vandalism-volunteers summer 2021
2021-05 Gateway signs washed- staff
The Art of
Arlington
May 2021
Leaping Bunnies for Division Street
by Sarah Arney 2021
Postcard Murals coming soon… 2021
Kent Prairie Roundabout Tractor 2020
AeroVane at Airport Office
by Wayne Kangas 2021
Rock Cradled, Centennial Trail
by Dan Freeman 2021
Going with the Flow, Airport Blvd.
by Verena Schwippert 2020
Coastal Community Bank’s Mural
by Harry Engstrom 2020
Eagles Come Home at Gleneagle entrance
by Caroline Sumpter 2020
Airport Blvd Bench
Sarah Arney 2020/2021
Skatepark Mural 2020
Library Shed Mural by Erika Bruss 2020
Own by Jacob Lucas 2020
Community Garden Gate
by Caroline Sumpter 2020
Art Banners for Smokey Point (reprints)
2020
Fence Bee Art
by Erika Bruss & Friends 2019
Community Garden Mural
by Debi Tucker 2019
Bench Painting
Vicki Johnson, Sarah Arney, Monica Bretherton
2018 -2019
“Pause” Cascade Granite Bench
Arlington Valley Rd
by Verena Schwippert, 2019
“Ottoman” Granite Bench, Arlington Valley Road
by Verena Schwippert 2019
Silent Hunter Wood Cougar Bench
by Jacob Lucas 2019
Steelies for 67th Avenue Medians
by Monica Bretherton, Erika Bruss,
Mike Nordine, Tim Johnson 2018
The Depot Barn Quilt Trail Block 2018
Mini Electric City by Janet Myer & Don Morley
2018
Duck Dash by Jack Gunter at Haller Park
2018
Rip Rap
by Reg Akright
A Memorial to
George Boulton
2018
Haiku Rock at Terrace Park 2018
poem by Carl Richardson
Haiku benches at Terrace Park
engraved by volunteer artist Erika Bruss 2018
Cows Return to Jensen Park
2017
Stream Signs/ Metal Fish
by Mike Nordine 2017
Kaleidoscope at Terrace Park 2017
by Erika Bruss
Owl Silhouettes
Terrace Park Shelter 2017
by Kristina Yantis and Erika Bruss
Quilt Squares
2017
Led by Sarah Lopez
Painted by Shiela Arnold, Jean Olson,
Marilyn Oertle, Sarah Arney
Terrace Park Stage Refurbish
2017
by Sarah Arney & Vicki Johnson
Owl Fence Art
2017
Led by Erika Bruss
“Sir Hops A Lot” at Haller Park
2017
By George Pratt
Painting for the Stillaguamish
Conference Room
2017
by Vicki Johnson
Collection of Paintings for the
Stillaguamish Conference Room
2017
by Christina Harvey
Centennial Trail Mile Markers
2017
by Renee O’Connor
Haiku Rock
Terrace Park 2017
Poem by Jean Olson
Going to Ride
Haller Park 2016
by Janet Myer painted by AAC members
The Bell on the Centennial Trail
2016
Bell by Steve Bryant, Structure by Sarah Lopez
Dairy Queens
mural by Harry Engstrom
located at Co-Op 2016
The Musicians
Sound Garden
mural reprint on metal
2016
Salmon Pole
by Mike Nordine and AAC members 2016
Embraced by Love
2016 Donated by:
Immaculate Conception Catholic Church
Fish Pole at Legion Park
new fish 2016
Community Garden Art
by youth at 2015 Art in Legion Park
Billboard at Island Crossing
2015
Fishing the Stillaguamish
osprey sculpture
by Dan Brown 2015
Haller Bridge, Centennial Trail
Kent Baker Memorial Bench
by Lance Carleton 2015
Starry Night
Tribute to Vincent Van Gogh
by 4th graders at Eagle Creek Elementary
& Erika Bruss
2013, donated in 2015 to City Hall
Transporting through Arlington
by youth, with adult mentors
Jillian Mattison, Henri Wilson and Karla Benjamin
and AAC Members 2015
Marysville and Northern No. 2
by Jacques Drapeau
Depot Visitor Center
Honoring –Tenses of Time
by Julie Berger
Community Transit Center 2014
Rooted Embrace
by Debbi Rhodes 2014
Bird Mosaics
on 67th Avenue, Centennial Trail
by Renee O’Connor 2014
Haiku Poetry
in 67th Avenue Plaza 2014
Banner reprints for 67th Avenue
2014
Arlington Art Walk signage
on I-5 and SR 530
2014
Reclaiming Futures
Public Works mural
by youth and artists
Jillian Mattison and Henri Wilson
PAIR –Pairing Artists in Recovery 2014
SR 530 Entryway Sign
art by Shinobu Kawaoka 2013
SR 9 North Entryway Sign
art by Caroline Sumpter 2013
Smokey Point Entryway Sign
art by Barry Herem 2012
SR 9 South Entryway Sign
art by Caroline Sumpter 2012
Island Crossing Entryway Sign
fish by Marguerite Goff
lettering by Lance Carleton
2010-11
Sound Garden completed
2013
The Musicians
by Jim Walker, painted by Anthony Gaskin
2012
Swirl in the Sound Garden
2012
Terrace Park stage mural
designed by Christina Harvey, painted by youth
2012
Patriotic Star mosaic
by Erika Bruss & Sarah Lopez 2012
Spider bike rack
by Mike Nordine 2012
Train Art in the Depot
by Rocky Barrick 2012
Two Eagles & Bear
donated by carver Dave Tremko
2012
Mayor Margaret’s Eagle
by Bill Matheson 2011
Waterline
by Verena Schwippert 2011
Eagle
by Debbie Tremko 2011
Stilly River in Early Morning Fog
by Camelia Nahlik 2011
displayed in City Hall
Original Banners 2011-2013
Banners for Edgecomb
reprinted in 2011
Resilience
by Joe Powers 2011
Snohomish County Arts Commission
Into the Stilly Valley
by Cheri O’Brien
Downtown Arlington Business Association 2011
Snowman Extravaganza
Terry Marsh & Downtown Arlington Business Association
2010-2011
Mukilteo Traffic Jam
by Jack Gunter 2010
Arlington Airport Office
Reprinted Banners for Smokey Point
2010
Watershed Wood Model
Stillaguamish Valley Pioneer Museum 2010
Cascade Valley Hospital
Art Collection 2009
Some Things Fishy in
Arlington
Community Project 2009-2010
Flat Tire
by Lance Carleton 2009
Raven Captures the Sun
by James Madison 2008
Stream Life of the Stillaguamish River
by Harry Engstrom 2008
The Labyrinth
designed by Sarah Lopez, built by volunteers
2008
Grandfather
by James Madison 2007
Center of the Universe
by Kirk McLean 2007
Council of Salmon
by Marguerite Goff 2007
Norwegian Story Pole
by Steve Jensen 2006
The Banner Project
2006-2007
Murals at Arlington Airport
by Harry Engstrom
Birdwatch-Bleeding Heart
By Kathryn Glowen
Overhead/Underfoot
by Kathryn Glowen 2005
Dedicated to the Beauty of Earth
by Verena Schwippert 2005
Stilly Valley Victorian
by Harry Engstrom 2004
Three Beauties
(retired from display)
by Harry Engstrom 2004
Salmon Spawning Pool
Verena Schwippert 2004
Time Capsule
Kurt McVay,Cuz Concrete & Masons 2003
Species of the Westside
by Harry Engstrom 2003
Run of Number One
mural by Harry Engstrom &
Stillaguamish Valley School Mural Class 2003
Centennial Park
Art by Fourth Graders, 1989
The Centennial Fountain
Charles Bigger 1989
City of Arlington Council Agenda Bill Item: NB #2 Attachment D
City of Arlington Council Agenda Bill Item: NB #3 Attachment E
of the total assessed value is owned by the proponents. The properties are within the City Urban Growth Area (UGA), and the current City limits abuts the proposed annexation area to the Northern and Eastern boundaries. The City’s Comprehensive Plan designates the area as Residential Ultra Low Capacity with a Master Plan Neighborhood Overlay. The zoning map pre-zones this area with the same designations.
City of Arlington Council Agenda Bill Item: NB #3 Attachment E
#31052500200500, 31052500200600, 31052600100300, 31052600100400, 31052600100800, 31052600101400, 31052600101500, 31052600101900, as a part of the City of Arlington’s Urban Growth Boundary. As a part of the 1995 Comprehensive Plan the area south of 172nd Street NE and west of SR 9 was identified as a future growth area, called at the time the Route 9 subarea, that was strategically located near the employment hub at the airport, it is also located near the Central Business District, as well as intersecting with several regional arterial systems. At the time, and still applicable today, the City saw this are as having great potential for high-density residential and neighborhood commercial infill, potential to serve as a primary linkage between the other areas of Arlington, and is within walking distance of Arlington’s industrial area, now commonly referred to as the Cascade Industrial Center. The proposed annexation for Parcel ID#31052500200500, 31052500200600, 31052600100400, 31052600100800, 31052600101400, 31052600101500, 31052600101900, has previously attempted to be annexed into the City of Arlington, however the 60% petition was not passed after the 10% Petition was put on indefinite hold in 2006 due to a sewer capacity issue, and until concurrency requirements for sewer availability could be satisfied. On April 6th 2009, Ordinance 1451 was signed by Mayor Larson which rezoned the area in question to a Master Planned Neighborhood zoning requiring the area to be a Master Plan Neighborhood Development. On August 18, 2009, the City issued a notice to the previous applicant that the City has planned, financed and started construction of a sewer plant expansion that would be able to serve the area and they are now able to proceed forward with the annexation process. On October 7, 2009 City Staff issued a notice to the applicant that if the applicant had any interest in continuing the process that they had until October 20, 2009 to respond. The city did not receive any notification from the applicant so the annexation application was voided. The current applicants are unaffiliated with the previous submittal, and has included the addition of parcel 31052600100300 which was not included in the previous proposal at the 10% petition and was a requirement of the required 60% petition on the previous application. The current applicants are partial owners of the annexation area and are moving forward through the annexation with the understanding that the property will still be under the Master Plan Development regulations as required. The City Council considered whether to move forward with a consideration for acceptance of the 10% Petition for Annexation on February 16, 2021, and accepted the 10%
Staff Report & Recommendation
Lindsey Annexation - PLN #731
Page 1 of 4
STAFF REPORT & RECOMMENDATION
To: Planning Commission
From: Josh Grandlienard, Planner II
Date: March 25, 2021
Regarding: Proposed Lindsay Annexation PLN#731
PROJECT DESCRIPTION AND REQUEST The Applicant, Joe Matthias, Greg Blunt, Susan Berndt & David Hale, Josh Markezinis, Gregory Kern, Virl & Dianna Basim, and Judith Leger has submitted a 60% Petition for Annexation form for the annexation of approximately 97.5 acres located in the southeast side of the City. The applicants have previously submitted for their 10% petition, which was reviewed by the City’s Planning Commission on January 21, 2021 and February 2nd, 2021. The 10% petition was then moved forward for a Public Meeting with the Arlington City Council on February 8th, 2021. A Public Hearing is required in front of the City Council prior to Council acceptance of the Petition. The properties are within the City’s Urban Growth Area and the current City limits abut the proposed annexation area to the North and East.
GENERAL INFORMATION
Applicant/Owner: Joe Matthias
Contact Person: Joe Matthias
General Location: 7500 Block of 172nd Street NE through 8400 Block of 172nd Street NE
Acreage: 97.84 Acres
I. DETAILED PROJECT INFORMATION The applicant is requesting the annexation of approximately 97.5 acres that is currently within the City’s Urban Growth Area. Approval by the City Council is required for all annexation applications. If the request is granted, the City’s Comprehensive Plan Land Use Map and the City’s Official Zoning Map would need to be amended.
Staff Report & Recommendation
Lindsay Annexation - PLN #731
Page 2 of 4
II. REGULATORY REQUIREMENTS 1. SEPA COMPLIANCE: The amendment of a comprehensive plan amendment is subject to provisions of the State Environmental Policy Act (SEPA) and Chapter 20.98 of the Arlington Municipal Code (AMC). 2. PUBLIC NOTIFICATION/INVOLVEMENT a. A Presentation to the Planning Commission will occur on June 1, 2021 and June 15, 2021, requesting a recommendation to support the annexation. b. A Public Meeting will be held at City Council, via Zoom in order to comply with Proclamation 20-08 on May 24, 2021, to set the date for a public hearing regarding the proposed annexation. c. The City will present information and advertise the Public Hearing regarding the Annexation in the standard manner for noticing for public hearings as part of regular City Council Meetings. 3. WASHINGTON STATE DEPARTMENT OF COMMERCE NOTIFICATION The Lindsay Annexation will be submitted to the Washington State Department of Commerce (DOC), and the DOC will notify the City that if it is in procedural compliance with RCW 36.70A.106.
III. BACKGROUND INFORMATION Prior to the establishment of the City of Arlington writing its own comprehensive plan in 1995, Snohomish County wrote for the city their 1985 Comprehensive Plan that included the expansion of the City’s Urban Growth Area to include tax parcels #31052500200500, 31052500200600, 31052600100300, 31052600100400, 31052600100800, 31052600101400, 31052600101500, 31052600101900, as a part of the City of Arlington’s Urban Growth Boundary. As a part of the 1995 Comprehensive Plan the area south of 172nd Street NE and west of SR 9 was identified as a future growth area, called at the time the Route 9 subarea, that was strategically located near the employment hub at the airport, and it is also located near the Central Business District as well as intersecting with several of the regional arterial systems. At the time, and still applicable today, the City saw this are as having great potential for high-density residential and neighborhood commercial infill, potential to serve as a primary linkage between the other areas of Arlington, and is within walking distance of Arlington’s industrial area, now commonly referred to as the Cascade Industrial Center. The proposed annexation for Parcel ID#31052500200500, 31052500200600, 31052600100400, 31052600100800, 31052600101400, 31052600101500, 31052600101900, has previously attempted to be annexed into the City of Arlington, however the 60% petition was not passed after the 10% Petition was put on Indefinite hold in 2006 due to sewer capacity issue and concurrency requirements for sewer availability could be satisfied. On April 6th 2009, Ordinance 1451 was signed by Mayor Larson which rezoned the area in question to a Master Planned Neighborhood zoning requiring the area to be a Master Plan Neighborhood Development. On August 18, 2009, the City issued a notice to the previous applicant that the City has planned, financed and started construction of a sewer plant expansion that would be able to serve the area and they are now able to proceed forward with the annexation process. On October 7, 2009 City Staff issued a notice to the
Staff Report & Recommendation
Lindsay Annexation - PLN #731
Page 3 of 4
applicant that if the applicant had any interest in continuing the process that they had until October 20, 2009 to respond, which the city did not receive any notification from the applicant so the annexation application was voided. The current applicants are unaffiliated with the previous submittal, and has included the addition of parcel 31052600100300 which was not included in the previous proposal at the 10% petition and was a requirement of the required 60% petition on the previous application. The current applicants are partial owners of the annexation area and are moving forward through the annexation with the understanding that the property will still be under the Master Plan Development regulations as required. At time of 10% petition submittal, 49.73% of the Snohomish County assess valuation has been reached based off the information available from the Snohomish County Assessor. Staff has reviewed the draft findings during review of the project and finds that the applicant has met the intent of all applicable requirements and standards. The plan supplements the Comprehensive Plan, through planning goals PH-1.1, GL-4, PL-4.4, GL-6, and PL-6.1. PH-1.1 A variety of housing types and densities should be encouraged on lands with a residential land-use designation. GL-4 Accommodate new development in a manner that supports a growth rate consistent with the goals of the State Growth Management Act but also preserves and enhances Arlington’s quality of life, its natural environment, and its historical and cultural amenities PL-4.4 When proposing Urban Growth Area expansions, the City should only seek land to be included within the City’s Urban Growth Area that is suitable for urban development consistent with the Growth Management Act and where utilities and infrastructure can be provided at reasonable costs. GL- 6 Annex all unincorporated Urban Growth Areas within the City’s Urban Growth Area. PL-6.1 Annexations should include all land within the respective unincorporated Urban Growth Area enclave. The property also falls under a Master Planned Neighborhood Development (MPND) overlay for the whole of the Lindsay annexation area. In order to fulfill the requirements of the MPND, any development that occurs would have to follow AMC section 20.44.032 for a MPN. For areas designated Master Planned Neighborhood in the comprehensive plan, MPND approval may be sought prior to or after annexation to the city. However, in the case where MPND approval is not approved prior to or concurrent with annexation the entire annexation area shall be zoned Residential Ultra Low Capacity until such time that an MPND is approved. In approving the MPND the council may require that the MPND comply with any site specific development regulations that the city may develop. On April 27, 2021, Chris Huyboom the Snohomish County Deputy Assessor provided a Certificate of Sufficiency for the 60% Petition for the Lindsay Annexation by confirming that the signatures on the petition amounted to 71.44% of the total assessed value of the proposed annexation area.
IV. ANALYSIS Staff recommends that the Planning Commission recommend for approval and adoption, the Annexation of tax parcels 31052500200500, 31052500200600, 31052600100300,
Staff Report & Recommendation
Lindsay Annexation - PLN #731
Page 4 of 4
31052600100400, 31052600100800, 31052600101400, 31052600101500, 31052600101900 to the City of Arlington by City Council.
V. FINDINGS AND CONCLUSIONS 1. Public meetings will be held on May 24, June 1, 2021, June 7, 2021, and June 15, 2021.A public hearing date will be set by City Council at the June 7, 2021 meeting. 2. The Annexation and associated staff reports will be submitted to the DOC in accordance with RCW 36.70A.106 and the submittal will meet all DOC’s procedural requirements. 3. On May 24, 2021, City Council will discuss the 60% Petition for Annexation form for the Lindsay Annexation at their workshop meeting. 4. The application for PLN#731 has been reviewed for consistency with the Arlington Comprehensive Plan and for internal consistency and the Lindsay Annexation is consistent with, and internally consistent with, the Arlington Comprehensive Plan. 5. PLN#731 has been reviewed in accordance with, and is consistent with, the Snohomish County Countywide Planning Policies. 6. The proposed Annexation is prepared in accordance with the Washington State Enabling Legislation (RCW 35A.63) and the Growth Management Act. 7. Documentation supporting the findings of fact is located in the file PLN#731, which is adopted by reference into this approval. 8. Adoption of the proposed Lindsay Annexation, PLN#731, furthers the public health, safety and general welfare.
VI. RECOMMENDATION Staff recommends that the Arlington City Council to accept the 60% Petition for Annexation for the Lindsay annexation and to direct staff to forward the Notice of Intent to the Boundary Review Board.
Distributed to the Following Parties: 1. Joe Matthias 2. John Markezinis 3. Planning Commission
Maps and GIS data are distributed “AS-IS” without warranties of any kind, either express or implied, including but not limitedto warranties of suitability for a particular purpose or use. Map data are com piled from a variety of sources which m ay containerrors and users who rely upon the information do so at their own risk. U sers agree to indemnify, defend, and hold harmlessthe City of Arlington for any and all liability of any nature arising out of or resulting from the lack of accuracy or correctness ofthe data, or the use of the data presented in the maps.
Lindsey A nnexation
±
City of Arlington
Date:
File:
Cartographer:
Scale:LindseyAnnexOFM8.5x11_21
1/21/2021 kdh/akc
1 inch = 5 50 fe et
Lindsey Annexation Parcels (97.5 acres)
176TH PL NE
OSPREY RD
BOREAL CT
KESTREL CT
I
RO
NWOODST
HARRIERDR
SAINT
ANDREWS
CT
SR 9
175TH PL NE
79TH AVE NE
82ND DR NE
PERREGRINE PL
168TH ST NE
177TH ST NE
172NDPLNECONDOR DR NE
175TH ST NE
176TH ST NE
174TH PL NE74TH DR NE
73RDDR
NE
75TH
AVE
NE
77TH AVE NE
83RD DR NE
84TH
AVENE
81
ST
DR
NE
85TH AVE NE
W COUNTRYCLUBDR
MCPHERSON RD
REDHAWK DR
79TH DR NE
80THDRNE
GLENEAGLEBLVD
172ND ST NE
Edgecombe Creek
31052600100100
31052600100200
31052600100300
3105260010140031052600101500
31052600101700
31052600102000
31052600102100
31052600102200
31052600102300
31052600100400
31052600101900
31052600101800
31052600100800
31052500200500
31052500200600
31052600101901
31052500200601
Legend
An nexation
City Limits
Arlington UGA
Assessor Parcels
Priva te Roa d
Pu blic Righ t of Way
Pa rks
Note : Parcel 3105 2500 20060 1 a nd 3 10526 00101 901 a re d uplica ted Parcels
RESOLUTION NO. 2021-XXX
A RESOLUTION ESTABLISHING A PUBLIC HEARING DATE FOR
THE LINDSAY ANNEXATION
WHEREAS, the proponents of the annexation commonly known as
the Lindsay Annexation were authorized to circulate a 60% petition regarding the
annexation; and
WHEREAS, the proponents have returned the 60% petition to the City as
required by law; and
WHEREAS, having considered the 60% petition, the City Council is required
by law to schedule a public hearing on the petition;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ARLINGTON, WASHINGTON, AS FOLLOWS:
1. The public hearing on the proposed Foster Annexation shall be
scheduled before the City Council at its regular meeting at 7 p.m. on the 5th day of July,
2021, and staff is directed to give notice as required by law.
APPROVED BY THE CITY COUNCIL of the City of Arlington this 7th day of
June, 2021.
_______________________________
Barbara Tolbert, Mayor
Attest:
__________________________
Wendy Van Der Meersche, City Clerk
Approved as to form:
__________________________
Steven J. Peiffle
City Attorney
Snohomish County
Assessor’s Office
Email: contact.assessor@snoco.org
Web: www.snohomishcountywa.gov/assessor
CERTIFICATE OF SUFFICIENCY
I, Chris Huyboom, Snohomish County Deputy Assessor, in accordance with the
requirements of RCW 35A.01.040, hereby certify that the Petition for the City of Arlington
Lindsay Annexation submitted to the Assessor on April 21, 2021 is signed by the owners of
property comprising 71.44% of the total assessed value within the area described in the petition,
according to the records of the Snohomish County Assessor. The determination of sufficiency was
begun on April 27, 2021.
Dated this 27th day of April 2021.
By__________________________
Deputy Assessor
Linda Hjelle
County Assessor
Laura Washabaugh
Chief Deputy
M/S #510
3000 Rockefeller Ave.
Everett, WA 98201-4046
(425) 388-3433
FAX (425) 388-3961
City of Arlington Council Agenda Bill Item: NB #4 Attachment F
needs assessment. The facilities and parks plans and the funding assessment will be brought to Council for review and discussion later this year.
RESOLUTION NO. 2021-xxx
RESOLUTION NO. 2021—xxx
A RESOLUTION OF THE CITY OF ARLINGTON REPLACING RESOLUTION NO. 2019-004, AND ADOPTING REVISED FINANCIAL POLICIES FOR THE CITY
WHEREAS, the National Advisory Council on State and Local Budgeting Practices recommends budget practices, including the development of a series of financial policies; and WHEREAS the Arlington City Council has reviewed and deliberated on the recommended revisions to the financial policies, and finds that it is in the best interest of the City to amend its financial policies; NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF ARLINGTON: Section 1. The “Financial Management Policies” dated June 7, 2021 are hereby adopted as the financial policies and practices of the City. Section 2. This resolution shall take effect immediately upon passage thereof. APPROVED by the Mayor and City Council of the City of Arlington this 7th day of June, 2021. CITY OF ARLINGTON ___________________________ Barbara Tolbert Mayor ATTEST: _________________________________ Wendy Van Der Meersche City Clerk APPROVED AS TO FORM: __________________________________ Steven J. Peiffle City Attorney
EXECUTIVE SUMMARY – 2021 FINANCIAL POLICIES UPDATE
The financial policies were last updated May 2019. Since then, the City of Arlington has reached a
population size of greater than 20,000 which allows flexibility in some procurement policies. Most of
the changes in the policy document will be found within the procurement section. A few updates
have been made to the reserve policies based on conversations from the council retreat in April.
Additionally, it’s a prudent business practice to review policies on a regular basis to make sure they
are relevant to the current market and up to date with state and federal regulations. Changes were
made based on changes to state law, recommended practices from MRSC and review of similar size
city policies.
Below is an itemized highlight of each of the recommended changes;
RESERVE POLICIES
Mandatory Reserve – page 4
Updated the target range of the mandatory reserve fund to 10% - 16% of budgeted taxes and
license/permit revenues. This increases the floor percentage from 8% to 10%. The reserve balance
is currently at 9% which equals $1.3 million. Based on the 2021 budget, 10% would equal $1.5 million
so adding about $200,000 in this fund would bring the reserve up to 10%.
General Fund Ending Fund Balance – page 4
Language changed so that the general fund ending fund balance will be two months of operating
expenses by 2023 and maintain at two months thereafter. Based on 2021 expenses, one month is
equal to $1.6 million, two months would be equal to $3.2 million. So an additional $1.6 million would
be needed to bring the reserve up to two months. April’s general fund ending fund balance is $4.9
million less $1.3 million for annexation obligations which leaves $3.6 million, this means that the
current ending fund balance would be able to meet this policy now, subject to any revenue shortfall
unexpected expenses, or increases to other reserve balances.
Capital Facilities Fund – page 4
This section has been removed, see highlighted section. The city plans to develop a long term capital
facilities replacement schedule and funding assessment to determine how much money needs to be
set aside each year in order to maintain city facilities on a regular basis. A separate policy, along with
the capital needs assessment, will be provided to council for review and discussion later this year.
Park Improvement Reserve – page 4
This section has been removed. The city plans to develop a long term park improvement plan and
funding assessment to determine how much money needs to be set aside each year in order to
maintain city parks on a regular basis. A separate policy, along with the park improvement plan, will
be provided to council for review and discussion later this year.
CAPITAL ASSET POLICIES
Insurance – page 11
Aligned policy language with WCIA insurance policy language and clarified that all vehicles (as
deemed appropriate) require insurance.
PURCHASING POLICIES
Definitions – page 14 and 15
Removed “attached as exhibit B” from contract authorization summary as there is no exhibit B to the
financial policy document. Added definition for personal services, added clarifying statement to
purchased services, changed On Call contract to Unit Price contract to align with state law verbiage,
added clarifying statement to professional services.
General Provisions – page 16 and 17
Added RCW reference for bid splitting. Clarified and simplified how to calculate approval levels for
amendments and change orders. Thresholds will be based on the total amount of change orders in
relation to the original contract price. Added dollar threshold for when council must approve the
amendment or change order which is more than 10% over the original contract price or in excess of
$200,000.
Purchase of Supplies, Materials and Equipment – page 17 – 20
Added RCW reference that governs purchases of supplies, materials and equipment for cities with a
population of 20,000 or more. Cities with a population of 20,000 or more can develop their own
policy limits with respect to purchasing supplies, materials and equipment. The dollar thresholds for
which formal bids are required has been increased to $30,000 from $15,000. This is consistent with
other cities of similar size. The language referencing the use of a vendor list was removed as informal
quotes can be obtained from any vendor so the vendor list language is redundant. Changed “lowest
responsible vendor” to “lowest responsible bidder” to be consistent with language in state law.
Under Exceptions, changed verbiage from “purchasing limitations” to “bidding requirements”. Added
two exceptions that are allowed by law but were not previously noted in our policy document;
purchases through the federal government and neighborhood self-help projects. This language was
taken from state law.
Public Works Projects – page 21 - 23
Added RCW reference for public work projects. Added language for unit price public work projects
to be consistent with state law. Updated the dollar threshold which allows for soliciting less than all
vendors from the small works roster (increased to $250,000 from $150,000), this was a change to
state law. Updated dollar threshold for when the small works roster must be used which was a change
in state law, the threshold increased to $350,000 from $300,000. Clarified that the list of contracts
will be available on the city’s website. Added language from state law that allows 10% retainage to
be held (in lieu of a bond) for contracts $150,000 or less.
Contracts for Agreements – page 23 - 26
Added section titles to differentiate between the different types of services that can be contracted
for (personal vs. professional vs. purchased vs. A&E). Changed On call contracts to Unit Price
contracts to be consistent with language used in state law. Added Personal Services to professional
services procurement section. Personal and professional services require slightly different contract
terms but can be procured in the same way, that way the types of agreements in the policy document
is consistent with the types of contracts the city uses. Added section for purchased services, this was
previously only noted in the contract authorization summary so this section adds more information
about how to procure these services.
Real Property – Mayor Selling and Conveyancing Authority – page 27
Added language giving the Mayor authority to transfer or acquire easements when there is no
financial consideration involved. This is a new section and recommended per city attorney.
Contract Authorization Summary – page 29 - 33
This chart was updated as per changes within the policy document already noted and/or to meet new
RCW thresholds. Signature authorities were increased slightly to be consistent with increases in
procurement thresholds. Council will still approve projects/contracts that were not already approved
through the budget process and any contracts that are $150,000 or more (which is an increase from
$100,000).
Cost Allocation – page 34
Removed reference to the Transportation Benefit District as this is no longer a separate entity. Added
the City Fiduciary Fund as this is a new fund. Removed reference for Fire/EMS as after annexation on
8/1/2021 Fire/EMS will no longer be a city department.
1
Financial Management Policies
DRAFT 5/31/2021
1
2
Table of Contents
Purpose & Objectives .............................................................................................................................. 3
Reserve Policies ........................................................................................................................................ 4
Revenue Policies ....................................................................................................................................... 5
Expenditure Policies ............................................................................................................................... 7
Budget and Operating Policies ............................................................................................................ 8
Capital Assets Policies and Procedures ......................................................................................... 10
Purchasing Policies and Procedures .............................................................................................. 13
Cost Allocation and Allocated Costs ................................................................................................ 30
Debt Management Policy .................................................................................................................... 32
Investment Policy .................................................................................................................................. 34
Glossary .................................................................................................................................................... 38
3
Purpose:
The Comprehensive Financial Management Policy assembles all of the City’s financial policies
in one document. They are the tools to ensure that the City is financially able to meet its
immediate and long-term service objectives. The individual policies contained herein serve as
guidelines for both the financial planning and internal financial management of the City.
The City of Arlington is accountable to its citizens for the use of pub lic dollars. Municipal
resources must be wisely used to ensure adequate funding for the services, public facilities,
and infrastructure necessary to meet the community’s present and future needs. These
policies safeguard the fiscal stability required to achieve the City’s goals and objectives.
Objectives:
In order to achieve its purpose, the Financial Management Policies have the following
objectives for the City’s fiscal performance.
A. To guide the City Council and management policy decisions that have significant
impact.
B. To set forth-operating principles that minimize the cost of government and financial
risk.
C. To employ balanced and fair revenue policies that provide adequate funding for
desired programs.
D. To maintain appropriate financial capacity for present and future needs.
E. To promote sound financial management by providing accurate and timely
information on the City’s financial condition.
F. To protect the City’s credit rating and provide for adequate resources to meet the
provision of the City’s debt obligations on all municipal debt.
G. To ensure the legal use of financial resources through an effective system of internal
controls.
H. To promote cooperation and coordination with other governments and the private
sector in the financing and delivery of services.
4
Reserve Policies:
Adequate reserve levels are a necessary component of the City’s overall financial
management strategy to mitigate current and future risks such as revenue shortfalls or
unanticipated expenditures. Reserve levels are also a key factor in external agencies’
measurement of the City’s financial strength which results in favorable credit ratings and
access to lower cost of financing.
A. The City will strive to maintain a Mandatory General Fund Reserve with a target
balance between teneight and sixteen percent (108% - 16%) of the total General Fund
budgeted taxes and license & permit revenues. It is the city’s intent to reach 10% by
2023. These operating reserves are maintained to address temporary revenue
shortfalls; payment of approved expenditures due to cash flow shortage; reserves for
expenditures deemed necessary by the Mayor and City Council; temporary short-term
inter-fund loans, and other unanticipated expenses as approved by the City Council.
An annual contribution will be budgeted from General Fund resources as available to
maintain the target reserve level.
B. It is the intent of the City to have the general fund’s ending fund balance equal to two
(2) months of operating expenses by 2023 and maintain at two (2) months
thereafter.The City will maintain an ending fund balance within the General Fund of an
amount equal to one month of operating expenditures. Use of any required reserves
or surplus funds will be approved by council through the budget process.
The City will maintain a Capital Facilities/Building Fund to provide funding for
future facilities including debt repayment, less proprietary fund projects.
Contributions into this fund will be made from available funds as identified in the
adopted or amended budget. Additional contributions into this fund may come from
construction related sales tax. The amount of the contribution will be determined by
the construction sales tax collected during the fiscal year and will be approved
annually by city council through the budget amendment process.
C.
D.C. The City will maintain an Equipment Replacement Fund that will receive annual
contributions from the operating expenses of departments owning the equipment.
Contributions will be based on availability of funds as approved through the budget
process. The intent is to replace equipment at the end of the asset’s useful life.
E.D. It shall be best practice of all enterprise funds to maintain an ending fund balance (in
operational funds) of an amount equal to or greater than one month operating
expenses or an amount as otherwise required by federal, state or other regulations
(i.e. rate studies, debt covenants).
F.E. Reserves that fall below the minimum standards will require a financial plan
presented to council within 60 days of the shortfall. Fund balances will be restored to
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the minimum standard within a 3 year period.
G.F. All expenditures drawn from reserve accounts shall require prior Council approval
unless previously specifically authorized by the City Council through the budget
and/or budget amendment process.
Revenue Policies:
The City will identify resources that are sufficient to provide for the regular and ongoing
operations associated with providing public services.
A. To the extent possible, a diversified and stable revenue system will be maintained to
shelter public services from short-run fluctuations in any one revenue source. Trends
analyzing the dependence on distinct revenue sources shall be included in the budget
documents for consideration by the Council.
B. Revenue forecasts shall be realistically estimated and based on the best information
available. The finance director is responsible for developing a policy for the collection
of revenues. The policies will include any and all collection methods allowable by
state and federal statute or otherwise provided for in Municipal Code, leases or other
agreements. If all collection efforts have been exhausted, the finance director has
authority to write off uncollectible accounts up to $2,500 and the city administrator
has authority to write off uncollectible accounts up to $5,000. Any write off in excess
of $5,000 require council approval.
C. Revenue forecasts will assess the full spectrum of resources that can be allocated for
public services. Each year the Council shall review potential sources of revenue as part
of the budget process.
D. The use of one time revenues to fund ongoing expenditures is discouraged. One time
revenues may be used to fund capital projects, equipment o r other one time purchases
as otherwise authorized in the adopted or amended budget.
E. Property taxes provide a consistent base of revenues for the City to provide public
services. The City shall levy property taxes within its statutory limit or bank the levy
capacity so the City can continue to provide a safe, economically vibrant place to live
and work.
F. Short-term (anticipated less than one year) economic downturns and temporary gaps
in cash flow: Expenditure reductions or restrictions may be imposed. Inter -fund loans
may be used to address short-term cash flow needs as authorized by Chapter 3.90 of
Arlington Municipal Code.
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G. Long-term (greater than one year) revenue downturns: Revenue forecasts will be
revised. Expenses will be reduced to conform to the revised long-term revenue
forecast or revenue increases will be considered. The City will not pursue deficit
financing and borrowing to support on-going operations as a response to long-term
revenue shortfalls.
H. The City shall develop and maintain a comprehensive list of various fees and charges.
Fees may be set at levels sufficient to cover the entire cost of service delivery (such as
in “Enterprise Funds”), or the service may be subsidized, as Council deems
appropriate. The City will systematically review user fees and rates and consider
adjustments as necessary to take into account the effects of additional service costs
and inflation. Rate studies shall be conducted to ensure that the rates will continue to
support direct and indirect costs of operations, administration, plant maintenance,
debt service, depreciation of capital assets, and moderate system extensions. Based on
a market analysis, fees for similar services in other communities may also be
considered. The criteria used to evaluate recommended target rates (equity, cost
recovery policy, market demand, etc.) shall be included in the staff report during the
review. Such review should be scheduled periodically and be incorporated into the
budget process for possible action by the City Council.
I. The City, or Council approved board(s) or commission(s), will review contracts and
leases which result in revenues to the City. Leases and contracts will be reviewed on a
timely basis, prior to the expiration date or at least every 3 years if on a continuing
basis.
J. The City will refrain from using grants to meet ongoing service needs and grants may
be rejected if programs must be continued with local resources after grant funds are
exhausted. Grants will be evaluated from a financial planning perspective to ensure
the City has adequate matching funds (if applicable). Some grants may not be
accepted if the local matching funds cannot be justified. Grants with a matching
component, not previously approved through the budget process, require Council
approval. All other grants will be approved by City Council through the budget
amendment process and will be reviewed to ensure compliance with state, federal and
City regulations.
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Expenditure Policies:
The City will provide for a sustainable level of service by adopting a balanced budget where
ongoing resources are sufficient to support ongoing expenditures.
A. The City will only propose operating expenditures, which can be supported from on-
going operating revenues. Before the City undertakes any agreements that would
create fixed on- going expenses, the cost implications of such agreements will be fully
determined for current and future years. Capital expenditures may be funded from
one-time revenues, but the operating budget expenditure impacts of capital
expenditures will be reviewed for compliance with this policy provision.
B. Department heads are responsible for managing their budgets within the total
appropriation for their department. The finance director is responsible for oversight
of all budget expenditures and is authorized to make unilateral changes within line
item expenditures as long as the changes are within the overall budget.
C. The City will maintain expenditure categories according to prescribed accounting
standards, state statute, federal and administrative regulation. Departments are
responsible for reviewing expenditures to verify they are for a public purpose and
properly categorized within prescribed accounting standards. All expenditures shall
be audited and certified by the finance director or designee prior to submitting to the
City Council for approval.
D. All expenditures must be related to some public purpose and are reasonable in the
amount and nature.
E. The City will assess funds for services provided internally by other funds. The
estimated direct and indirect costs of service will be budgeted and charged to the fund
performing the service. Interfund service fees charged to recover these costs will be
recognized as revenue to the providing fund. A review of the method for determining
the amount of the interfund assessment will be reviewed periodically.
F. Emphasis is placed on improving individual and work group productivity rather than
adding to the work force. The City will invest in technology and other efficiency tools
to maximize productivity. The City will hire additional staff only after the need of such
positions has been demonstrated and documented.
G. All compensation planning and collective bargaining will focus on the total cost of
compensation, which includes direct salary, health care benefits, pension
contributions, training allowance, and other benefits of a non-salary nature, which are
a cost to the City. Collective bargaining decisions will not negatively impact the City’s
efforts to maintain reserve balances in compliance with the City’s reserve policy.
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Budget and Operating Policies:
The City will maintain a system of financial monitoring, control, and reporting for all
operations and funds in order to provide effective means of ensuring that overall City goals
and objectives are met.
A. Accounting Records and Reporting.
a. The City will maintain its accounting records in accordance with state and
federal regulations, which includes requirements for data retention for archival
purposes and business continuity.
b. City records will be archived and destroyed in accordance with the Washington
State Records Retention Schedule
c. The continuation of services after a disaster is critical to the success of the City.
The City must ensure that its applications, data and network resources can
continue and be appropriately accessible to users. The information technology
department is responsible for developing procedures for the security, storage,
retention and retrieval of data to ensure operations continue during and after a
disaster.
d. Budgeting, accounting and reporting will conform to the Budgeting,
Accounting and Reporting System (BARS) for Governments as prescribed by
the Washington State Auditor. Changes to the City’s revenue and expense
accounts must be authorized by the finance department and will be made only
if it’s in the best interest of the overall accounting system.
e. All known or suspected loss of public funds shall be reported to the State
Auditor’s Office in accordance with RCW 43.09.185.
B. Auditing. The State Auditor will perform the City’s financial and compliance audit in
accordance with state and federal laws. Results of the audit will be provided to the
Council in a timely manner.
C. Simplified Fund Structure. To the extent possible, the City will minimize the number of
Funds. Funds will be created and accounted for in accordance with BARS.
D. Cash Management.
a. The Finance Department will develop, maintain, and consistently seek to
improve cash management systems which ensure the accurate and timely
accounting, investment, and security of all cash assets.
b. There are several locations where monies are received by the City. Those
locations are: the Finance office, the Airport office, the Permits office, the Police
department, the Public Works office and the Cemetery office.
c. Deposits will be made every 24 hours as per RCW 43.09.240, including deposits
received from City departments by the finance department.
d. The Finance, Airport and Permits office locations all have cash drawers. These
funds are used to make change for cash payments. The amount of these cash
drawers are authorized by resolution.
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e. No change shall be given when a check is presented for payment.
f. Cash refunds are prohibited. Refunds shall be processed through the method
payment was received such as by check or credit card.
g. No one is authorized, at any time, to borrow funds from any cash drawer. Doing
so will result in discipline up to and including termination.
h. The Finance Office also has a Petty Cash Revolving Fund (Checking Account).
The Petty Cash Fund is authorized in the Arlington Municipal Code Section
3.69. This fund is used to pay very small expenditures or reimburse small
expenditures made where waiting for a payment from the normal payment
process is unreasonable. No one is authorized to borrow monies from this
Fund.
E. Budget.
a. The City’s budget is part of an overall policy framework that guides the services
and functions of the City. The budget serves as a key role in that framework by
allocating financial resources to programs which implement the City’s overall
vision and goals.
b. All decisions will be within the context of long-range plans (Capital Facilities
Plan, Comprehensive Plan/Capital Improvement Plan, Long Term Financial
Plan). Staff shall provide a review of the implications of budgetary proposals on
long-range plans.
c. The City will develop and maintain a ten year financial plan that estimates the
resources and expected costs over a ten year period. This planning tool will
provide the City’s decision makers with an indication of long-term fiscal
impacts of current policies and budget decisions.
d. The budget shall be developed consistent with state law and in a manner which
encourages early involvement with the public and City Council. A calendar
related to budget development shall be presented to the City Council each year.
The budget will be adopted by ordinance at the fund level.
e. The budget will be developed to consider long term financial implications. The
City will strive to build a budget so that recurring expenditures are covered by
recurring revenues and a budget that supports a trend of revenues growing at a
rate equal to or greater than expenditures.
f. The Finance Department will maintain a system for monitoring the City’s
budget performance. The system will provide the City Council with monthly
and or quarterly information in a timely manner on fund level resource
collections and department level expenditures.
g. Under the provisions of State Law and the City’s operating procedures, the
budget may be adjusted or amended in two different ways. Adjustment of the
budget involves a reallocation of existing appropriations and does not change
the “bottom line”. No City Council action is needed as State Law allows budget
adjustments to be done administratively.
h. Amendment of the budget involves an addition to or reduction of existing
appropriations. A budget amendment requires an ordinance amending the
original budget and identifies the funding sources for the incremental
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appropriations. Items that may require a budget amendment, such as an
unanticipated grant, will be approved by City Council throughout the year in
accordance with the City’s procurement and expenditure policies. A formal
Budget Amendment Ordinance will be adopted by City Council no later than
December 31 of the second year of the biennium.
Capital Assets Policies and Procedures:
A. Purpose. This policy is established to provide guidelines to ensure adequate stewardship
over City resources through control and accountability of capital assets, and to collect and
maintain complete and accurate capital assets information in the Capital Assets Sy stem.
B. Reference. Specific requirements of the Washington State Auditor’s Office are contained in
Budgeting and Reporting System (BARS) which will be applied by the City as relevant. In
addition, the federal government has issued property management requirements which
apply to all governments that receive federal assistance. Each federal agency has
published a Federal Agency Implementation of the Common Rule which will be adhered
to as applicable. The policies and procedures contained in this policy are not intended to
and may not supersede federal, state or local laws.
C. Definitions
a. “Capital Assets” are defined as land, buildings, improvements, equipment,
machinery, vehicles, tools, works of art, furnishings and other improvements
costing more than $7,500 and have a useful life of more than one year. These
assets will be tracked and an inventory listing will be maintained. Capital assets
purchased with grant funds will abide by the capitalization threshold as required
by the grant agreement.
b. “Control”- Being in charge of, and having the authority to manage the asset.
Having the custodial responsibility of the asset that includes, but is not limited
to the caring, keeping, safekeeping and protecting the asset.
c. “Inventory” – The process of physically confirming the existence and location of
capital assets.
d. “Small and Attractive Assets” - All assets with a cost less than $7,500 and at risk
or vulnerable to loss are considered “small and attractive assets”. These assets
will be tracked and an inventory listing will be maintained. Assets considered
to be small and attractive include, but are not limited to the following;
i. Communications Equipment; both Audio and Video
ii. Optical Devices, Binoculars, Telescopes, Infrared Viewers, and Range
finders
iii. Cameras and Photographic Projection Equipment
iv. Microcomputer Systems, Laptop and Notebook Computers
v. Other data processing Accessory Equipment and Components
vi. Office Equipment
vii. Stereos, Radios, Television Sets, Tape Recorders, DVD players, Video
Cameras and cell phones
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D. Applicability. This policy applies to all departments of the City of Arlington. The term
"Department" is defined to include every city office, officer, and every department,
division, board and commission.
E. Insurance. Insurance is required for all land, building and inland marine and vehicle
purchases and assets with a cost in excess of $25,000. Insurance is required on all
vehicles as deemed appropriate by the finance department.
F. Department responsibilities. Department directors are responsible for tracking, inventory
and safekeeping of all assets assigned to their department. Each department is
responsible for notifying the finance department, in writing, any assets purchased, sold,
traded, transferred, surplused, lost or stolen. The finance department is responsible for
keeping and updating the fixed asset database, coordinating the physical inventory
process and developing procedures for the safeguarding of assets.
G. Capital Outlay. All assets with a cost of $7,500 or more will be recorded as capital outlay.
Capital assets purchased with grant funds will abide by the capitalization threshold and
stewardship responsibilities as required by Title 2 of the Code of Federal Regulations
and/or the grant agreement.
H. Valuation of Capital Assets. The City of Arlington reports its financial activity on a cash
basis. Expenditures for capital assets will be expensed at cost in the period the
expenditure occurred.
I. Small and Attractive Assets. Although small and attractive assets do not meet the city’s capital
outlay threshold, due to ease of conversion to private use, they are considered assets for purposes of
marking and identification, records keeping and tracking.
a. Small and attractive assets shall be expensed.
b. Annually each department will conduct an inventory verified by the Finance
Department on a sampling basis.
c. Small and attractive assets (even if they do not contain an asset tag) may not be
transferred, traded, sold, auctioned, gifted, surplused, or discarded without
written notice to and authorization from the Finance Department.
J. Improvement/Repair/Maintenance Expenses. Routine repair and maintenance costs will
be expensed as they are incurred.
K. Deletions. Asset deletion (assets over $7,500) may be required due to the sale of the asset,
scrapping, lost or stolen items, or involuntary conversion (fire, flood, etc). Due to the
monetary value, capital assets deleted from the capital asset system for any reason
require authorization by resolution of the City Council.
L. Disposal.
a. Disposal of capital assets may occur only after being declared surplus by
resolution of the City Council. A Public Hearing is required if the asset was
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owned for Public Utility purposes or has a value more than $50,000
b. Disposal will be made in whichever manner is determined to be most cost
effective for the City. This may include sale, disposal, conversion, or any other
means as approved by the City Council in the surplus declaration.
c. When original or replacement equipment acquired under a grant or sub-grant
is no longer needed for the original project or program, disposition of the
equipment will be made as follows:
i. Items of equipment with a current per-unit fair market value of less
than $7,500 may be retained, sold or otherwise disposed of with no
further obligation to the awarding agency.
ii. Items of equipment with a current per-unit fair market value of $7,500
or more may be retained, sold or otherwise disposed of only as
authorized by the awarding agency.
iii. In the event the City is provided federally owned equipment, the City
will comply with Title 2 of the Code of Federal Regulations.
M. Lost or stolen property. When suspected or known losses of capital assets or small and
attractive items occur, departments should conduct a search for the missing property and
immediately notify the finance department. The finance department will report known or
suspected losses of assets to the State Auditor’s Office in accordance with RCW 43.09.185.
N. Transfers. Occasional transfers of property between departments, individuals within a
department or funds may occur. The original controlling department is accountable for all
assets in its inventory and for initiating a notice of transfer. Interdepartmental transfers
involving a proprietary fund (i.e. Surface Water) require a transfer of money. The sale
price will be fair market value with exception of a trade between departments of assets of
similar value.
O. Inventory. The Finance department is responsible for establishing procedures for the
inventory and reconciliation process. A physical inventory will be conducted at least once
every year. As coordinated by the finance department, each department will conduct a
physical inventory of the items, verifying the existence and condition of each item on the
worksheet, and making note of any additions, deletions, interdepartmental transfers,
modifications, or leases of property that are not reflected on the list. Verification of the
inventory shall be done annually by the Finance Department by performing a sampling of
the physical inventory of the items.
a. Inventory of IT (Information Technology) related items.
i. The Information Technology Department will be responsible for
inventorying all stationary items such as desktop computers, laptop
computers with docking stations, servers, printers and network
equipment.
ii. Individual departments will be responsible for inventorying all
“portable” small and attractive IT related items such as: Tablets (iPad,
Android, etc.) and mobile computers (Netbooks, Police Car computers,
Fire tablets etc.)
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b. In order to ensure objective reporting of inventory items, personnel having no
direct responsibility (custody and receipt/issue authority) for the assets should
perform the physical inventory. If it is not feasible to use such personnel for all
or a part of the inventory, then those portions are; at least, to be tested and
verified by a person with neither direct responsibility for that portion of the
inventory nor supervised by the person directly responsible. Departments are
encouraged to exchange and use personnel from other departments to perform
their inventory if possible.
P. Retaining physical inventory records. The documentation will be retained in accordance
with the Washington State Retention Records Schedule and must be retained until after
the next annual audit.
Purchasing Policies and Procedures:
A. Purpose. This policy is intended to direct the purchase of goods and services at a
reasonable cost, using an open, fair, documented and competitive process whenever
reasonable and possible. The integrity, efficiency, and effectiveness of Arlington's
procurement functions are critical elements of sound government.
B. Policy statement.
a. The City desires a fair and open process for procurement of goods and services
that is free from the potential for bias and conflict of interest. In addition, the City
desires consistent and appropriate practices for solicitations and contracting. No
employee, officer or agent may participate in the selection, award or
administration of a contract supported by a federal award if he or she has a real or
apparent conflict of interest.
b. All procurements of goods and services shall provide the City with the best quality
and best value. All purchases are to be made within budgetary limitations and for
the purpose of the goals and objectives approved in the City's budget. Any
requested purchase that is not included in the current City budget shall be pre -
approved by the Department Director, City Administrator, or City Co uncil, based
on allowable signing authority. All purchases made by the City shall ultimately be
approved by the City Council through the voucher approval process.
c. All City of Arlington departments shall make a good faith effort to purchase goods
within the City when they are available and suitable to City needs at a price that is
competitive. Departments are expected to procure goods and services that are of
high quality and that perform for their intended purpose, and to use good
judgment during the procurement process.
d. The Finance department is charged with developing administrative procedures to
implement this policy. Procedures should ensure the fiscal responsibility of the
City in expending resources for goods and services for City operations. The
procurement procedures of the City shall be based on guidelines provided in the
Revised Code of Washington, by the State Auditor's Office, and by Municipal
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Research Services Center.
e. The purchasing procedures of this policy govern the purchase of supplies,
materials and equipment, nonprofessional and professional services, and public
works contracts. These policies authorize the City to procure goods and services
through the small works roster process as defined in Section VI.D. The small works
roster procedures are established for use by the City, pursuant to RCW 35.23.352,
35A.40.210 and Chapter 39.04 RCW. Leases of equipment or other personal
property shall follow procedures for purchase of goods, with the aggregate of lease
payments used in lieu of purchase price. Purchase or lease of real estate, franchise
agreements, and intergovernmental or inter-local agreements will be entered into
in accordance with state law.
f. Each City Department purchases specialty items unique to their function and items
that are purchased just in time to make necessary repair or to keep equipment and
amenities in safe a good working order. All department directors will make good
faith effort to utilize a central purchasing for purchases of consumable goods and
reoccurring purchases. This will enable the best value by combining orders and
purchasing in bulk on larger quantities when possible.
C. Definitions.
a. "Architectural and engineering services" means professional services rendered by
any person, other than a City employee, to perform activities within the scope of
the professional practice of architecture (Chapter 18.08 RCW), professional
practice of engineering and land surveying (Chapter 18.43 RCW), and/or
professional practice of landscape architecture (Chapter 18.96 RCW).
b. “Contract Authorization Summary” outlines the levels at which managers,
directors, or the Mayor may commit the City to a contract. Attached as Exhibit B.
c. "Formal competitive bid" is the process of advertising and receiving sealed written
bids from perspective vendors. The selection of the vendor is primarily based on
the lowest cost from a responsible vendor.
d. "Informal competitive quotes" are price quotes from vendors that are obtained
using a variety of mediums such as phone, fax, e-mail, or writing. Results must be
documented. The selection of the vendor is primarily based on the lowest cost
from a responsible vendor.
e. "Inter-local agreements" are the exercise of governmental powers in a joint or
cooperative undertaking with another public agency.
f. "Life cycle cost" means the total cost of an item to the City over its estimated useful
life, including costs of selection, acquisition, operation, maintenance, and where
applicable, disposal, as far as these costs can reasonably be determined, minus the
salvage value at the end of its estimated useful life.
g. “MSRC Small Works and Consultant Roster” is a shared statewide small public
works and consultant roster service managed by the Municipal Research and
Services Center of Washington used by Washington state local public agencies. The
Small Works and Consultant Roster is maintained and operated in full compliance
with state laws and purchasing requirements.
g.h. “Personal Services” are services that involve technical expertise provided by a
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consultant to accomplish a specific study, project or task. Personal services do not
include purchased services or architectural or engineering services. Examples
include meeting facilitation, public outreach coordination, strategic planning
development, economic development or rate setting study. These type of services
are not typically regulated as a profession.
h.i. "Purchased services" are services that are purchased by the City for which the
contractor receives specific instructions and guidance from the City and does not
meet the definition of professional services, architectural and engineering services,
or public works projects. These tasks are repetitive, routine or mechanical in
nature. Examples include machine repair, debt collection services, temporary
service agencies, credit card services, equipment service agreements, auctioning
services, delivery services, inspections, advertising, landscaping or janitorial
services. etc.
i.j. "Unit PriceOn-call contract" means a contract that is awarded with general
provisions for the services to be rendered. As services are to be rendered, specific
task orders are initiated that are to be completed by the contracting firm.
j.k. “Ordinary maintenance" is work not performed by contract and that is performed
on a regularly scheduled basis (e.g., daily, weekly, seasonally, semiannually, but not
less frequently than once per year), to service, check, or replace items that are not
broken; or work not performed by contract that is not regularly scheduled but is
required to maintain an asset so that repair does not become necessary.
k.l. “Prevailing Wage” is defined as the hourly wage, usual benefits and overtime, paid
in the largest city in each county, to the majority of workers, laborers, and
mechanics. Prevailing wages are established, by the Department of Labor and
Industries, for each trade and occupation employed in the performance of public
work. They are established separately for each county, and are reflective of local
wage conditions.
l.m. "Professional services" are services provided by consultants that provide
highly specialized, generally one-time expertise to solve a problem or render
professional opinions, judgments or recommendations. The labor and skill
involved to perform these types of services are predominately mental or
intellectual, rather than physical or manual. Examples include graphics design,
advertising, analysis, financial expertise, accounting, artists, attorneys, bond
brokers, computer consultants, insurance brokers, economists, planners, real
estate services, etc. This term does not include architectural and engineering
services. These services are also considered personal services but are typically
regulated as a profession.
m.n. “Public work," as defined in RCW 39.04.010, means a complete project, and
includes all work, construction, alteration, repair or improvement other than
ordinary maintenance, executed at the cost of the City or which is by law a lien or
charge on any City property. Public work projects include the related materials,
supplies and equipment to complete the project. For purpose s of this policy, the
term “public work” may include contracts for maintenance of City facilities or real
property (i.e. janitorial services).
n.o."Request for proposals (RFP)" means a process that requests interested firms to
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submit a statement of their proposal for completing a project. Proposals are then
evaluated based on the idea, including originality, suitability, practicality,
expertise, etc. Proposals may be selected based on the quality of the proposal,
experience, cost, and references.
o.p."Request for qualifications (RFQ)" means a process that requests interested
consultants to submit a letter of interest and a statement of their qualifications.
Consultants are evaluated upon their qualifications, expertise, and references. Cost
cannot be a consideration until after a consultant has been selected at which point
the price may be negotiated.
p.q. "Small works roster" is a roster of qualified contractors maintained for use in a
modified formal bid process. When the contract amount for a public works project
is within the limits set forth by RCW 39.04.155, a city may follow the small works
roster process for construction of a public work or improvement as an alternative
to formal competitive bid requirements.
q.r. “Small Works Roster Manual for Local Governments” is a manual prepared by the
Municipal Research & Service Center of Washington (MRSC) that contains state
laws and regulations regarding small works contracting.
r.s. “Sole Source” occurs when competition among potential vendors is not possible for
a particular procurement. These situations may occur when; there is clearly and
legitimately only one source capable of supplying the subject matter, when there
are special market conditions that result in only one source and in the event of an
emergency.
s.t. “Vendor list” means the process to award contracts for the purchase of any
materials, equipment, supplies or services in lieu of formal sealed bidding
pursuant to RCW 39.04.190.
D. General provisions.
a. Grant funded projects may have additional regulations required for expending
federal and state funding. The signature authority as outlined in the Contract
Authorization Summary gives authorization to sign state and federal grant
documents, the department director and/or finance director have signature
authority to sign reimbursement request documents.
b. Breaking Down or Splitting Purchases. Pursuant to RCW 35.23.353(1), Tthe
breaking down, or splitting, of any purchase or contracts into units of phases for
the purpose of avoiding the maximum dollar amount is prohibited.
c. It shall be the responsibility of the Procurement/Contracts Analyst Central
Purchasing Coordinator and City Clerk to ensure MRSC rosters and vendor lists are
maintained, paid for and advertised as may be required by state law.
d. Amendments and Change Orders.
i. Amendments or change orders to contracts, including inter-local
agreements, which result in the final contract amount (original contract
amount plus all change orders) in excess of purchase limits identified in
this policy may be approved:
i.1. By the Department Director if the amendment(s) or change
order(s) combined are less than 5% over the original contract
Formatted
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amount.
1.2. By the City Administrator if the excess is 5% over the
original contract amount.purchase limit.
2.3. By the Mayor if the excess is 10% over the original
contract amount purchase limit up to $200,000..
3.4. By City Council if the excess is more than 10% over the
original contract amount or in excess of $200,000.purchase.
ii. Contract amendments that keep the final contract amount within
purchase limits may be administratively approved by the Department
Director within signing authority.
iii.ii. Contract amendments that are strictly a change in contract expiration
date may be administratively approved by the Department Director.
e. Signature Authority. The Mayor may delegate his/her signature authority to other
City employees (City Administrator, Department Director, and Division Manager)
as deemed appropriate. Department Directors may delegate their signature
authority to other employees within their department.
E. Purchase of materials, supplies or equipment.
a. Purchasing Limitations. Code cities with a population of 20,000 or more are
governed by RCW 35.22.620 for the purchases of supplies, materials and
equipment. Purchase limitations apply to the cost of individual items or the sum of
the same items purchased at the same time to fulfill a specific business need, which
are not part of a public works project as defined by RCW 39.04.010 and these
policies. Cost is inclusive of sales tax, delivery charges and any related
miscellaneous charges. Limits shown and processes identified in the Contract
Authorization Summary shall be followed when purchasing and authorizing the
acquisition of materials, supplies or equipment.
b. Exceptions to Bidding RequirementsPurchasing Limitations (RCW 39.04.280). The
Mayor, through a resolution approved by city council, is authorized to sign a
contract without obtaining the regularly required competitive quotes or bids
under the following conditions:
i. Special Market Conditions. When supplies or used equipment is offered at a
very favorable price and will be sold before the City will have a chance to
complete the bidding process. It is possible to procure obvious bargains
through the procurement of surplus or distress material, supplie s or
equipment without following bidding procedures
ii. Auctions. RCW 39.30.045 authorizes the City to acquire supplies, materials,
and equipment through an auction conducted by the United States or any
agency thereof, an agency of the state of Washington, a municipality or
other government agency, or any private party, without quotations or bids,
if the items to be purchased can be obtained at a competitive price.
iii. Inter-local Joint Purchasing Agreements. Materials, equipment, supplies and
services may be purchased under RCW 39.34.080 using joint purchasing
agreements with a city, county, state or other public agency where bid
requirements of this policy have been followed by the cooperating agency
18
in obtaining bids. Originating agency’s bid process shall be vetted to assure
compliance with all applicable laws.
iii.iv. Purchases through the US Government. RCW 39.32.090 authorizes the
purchase of supplies, materials, electronic data processing and
telecommunication equipment, software, services and/or equipment from
the United States government without calling for bids, notwithstanding any
law or charter provision to the contrary.
v. Sole Source Procurement. A contract for the purchase of materials, supplies,
or equipment may be awarded without complying with the bidding
requirements of this policy when the department director determines in
writing, subject to council approval through resolution, after conducting a
good faith review of available resources, that there is only one source of the
required materials, supplies, or equipment. The department director or
his/her designee shall conduct negotiations, as appropriate, as to price,
terms, and delivery time. Sole source purchases shall be made available for
public inspection.
iv.vi. Neighborhood “Self Help” Projects. RCW 35.21.278 allows cities to contract
with certain groups to do neighborhood improvement projects without
going out to bid. These groups include chambers of commerce, service
organizations, community, youth or athletic associations or other similar
organizations located in and providing service to the immediate
neighborhood. The contracting association may make park and recreation
improvements, install equipment and artwork and provide maintenance
services. The consideration received by the city (the improvements,
artwork…etc) must be at least equal to at least three (3) times the city’s
payment to the associations. All payments made by the city, in any one
year, shall not exceed $25,000 or $2 per resident within its boundaries,
whichever is greater.
v.vii. No Bids or Quotations Received. When no bids or quotations are received in
response to an invitation to bid or request for quotations, the department
director or his/her designee is authorized to procure the required item
through direct negotiations with a vendor or to rebid as the Mayor or
designee deems appropriate.
vi.viii. Emergency Procurements. Notwithstanding any other provisions of this
policy, the Mayor or designated agent may make or authorize others to
make emergency procurements of materials, supplies, equipment, or
services without complying with the requirements of this section when
there exists a threat to public health, welfare, or safety or threat to proper
performance of essential functions; provided, that such emergency
procurements shall be made with such competition as is practicable under
the circumstances. A written determination of the basis for the emergency
and for the selection of the particular contractor shall be included in the
contract file. As soon as practicable, a record of each emergency
procurement shall be made and shall set forth the contractor's name, the
amount and type of the contract, and listing of the item(s) procured under
19
the contract, which shall be reported to the City Council at the next
subsequent meeting. The City must produce a negotiated contract for each
emergency purchase within fourteen (14) days of procurement or the work
being performed.
vii.ix. RCW 39.04.280 allows waiving of competitive bidding for the purchase of
insurance and bonds.
c. Informal Competitive Quotes - Materials, Supplies or Equipment over $7,5003,000
up to $30,0007,500.
i. A City representative shall make an effort to contact at least three vendors.
The number of vendors contacted may be reduced if the item being sought
is only available from a smaller number of vendors. When fewer than three
quotes are requested or if there are fewer than three replies, an explanation
shall be placed in the procurement file.
ii. Whenever possible, quotes will be solicited on a lump sum or fixed unit
price basis.
iii. At the time quotes are solicited, the City representative shall not inform a
vendor of any other vendor's quote.
iv. A written record shall be made by the City representative of each vendor's
quote on the materials, supplies, or equipment, and of any conditions
imposed on the quote by such vendor.
v. All of the quotes shall be collected and presented at the same time to the
appropriate designee as appropriate for consideration, determination of the
lowest responsible vendor and award of purchase.
1. Whenever there is a reason to believe that the lowest acceptable
quote is not the best price obtainable, all quotes may be rejected and
the City may obtain new quotes or enter into direct negotiations to
achieve the best possible price. In this case, the department shall
document, in writing, the basis upon which the determination was
made for the award.
d. Vendor Lists – Materials, Supplies or Equipment between $7,501 and $15,000
i. The use of vendor lists is authorized by RCW 39.04.190 and whenever
possible, requires at least 3 written, informal quotes.
ii. Vendor lists must be solicited at least twice per year in a newspaper of
general circulation.
iii. Contracts must be awarded to the lowest responsible bidder.
iv. Immediately after the award from a vendor list, all bid quotations must be
recorded and made open to public inspection.
v. At least every two months, the agency must post a list of contracts awarded
using each list, including the date, the name of the contractor, the amount of
the contract and a brief description of the items purchased.
e.d. Formal Competitive Bid – Materials, Supplies, or Equipment over $30,00015,000.
i. General. Unless otherwise specifically approved by the City Council, all
contracts relating to the purchase of materials, equipment, or supplies shall
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20
be in accordance with the City budget.
ii. Invitation for Bids. An invitation for bids shall be issued which shall include
the specifications and the contractual terms and conditions applicable to
the procurement.
iii. Public Notice. Public notice of the invitation for bids shall be published at
least once in a newspaper of general circulation within the City, not less
than 13 calendar days prior to the date set forth therein for the opening of
bids, unless for good cause shown, the City Council authorizes a different
period of time. The public notice shall state the date and time of bid
opening. Bids not received by the date and time stated for bid opening will
not be accepted or considered.
iv. Bid Opening. Bids shall be opened publicly and recorded at the time and
place designated in the invitation for bids. Bidders will be notified of bid
results and results will be posted on the city’s website.
v. Withdrawal of Bids - Cancellation of Awards. Bids may be modified or the
bid may be withdrawn by written notice received in the office designated in
the invitation for bids prior to the time set for opening. After bid opening,
withdrawal of bids shall be permitted only to the extent that the bidder c an
show by clear and convincing evidence presented in a sworn affidavit or
declaration submitted no later than 5:00 p.m. on the first business day after
bid opening, that a clerical mistake was made and not a mistake in
judgment, and the bid price actually intended. All decisions to permit the
withdrawal of bids after bid opening, or to cancel awards or contracts based
on bid mistakes, shall be made by the Mayor after consulting with legal
counsel.
vi. Award. The City Council shall award purchases for amounts greater than
the limits as identified in the City budget and for purchases not included in
the adopted budget. The award of bid shall be made to the lowest
responsible bidder whose bid meets the specifications and evaluation
criteria set forth in the invitation for bids. The City may reject all bids at its
discretion.
vii. All vehicles, equipment and unbudgeted purchases of over $7,500
(including tax) will have a completed and approved Capital Outlay Form
submitted to the finance department prior to making the purchase.
viii. Lowest Responsible BidderVendor. The following factors, in addition to
price, may be taken into account by the City in determining the lowest
responsible biddervendor; these criteria shall also apply in selecting
products or services either offered with, or associated indirectly with, City
programs or facilities:
ix. Any preferences provided by law to local products and vendors;
x. The ability, capacity, and skill of the vendor to perform the contract;
xi. The character, integrity, reputation, judgment, experience, and efficiency of
the vendor;
xii. Whether the vendor can perform the contract within the time specified;
xiii. The quality of performance of previous contracts or services;
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21
xiv. The previous and existing compliance by the vendor with laws relating to
the contract;
xv. Such other information as may be secured having a bearing on the decision
to award the contract.
xvi. Life Cycle Costing. In considering the purchase of materials, equipment,
supplies, whenever there is a reason to believe that applying the "life cycle
costing" method of quote evaluation would result in the lowest total cost to
the City, first consideration shall be given to purchases with the lowest life
cycle cost which complies with the specifications.
xvii. Recycled Products. The City shall also seek to maximize purchase of
products using recycled materials and products suitable for recycling,
unless the purchase will result in an unreasonable increase in price or
degradation of quality or performance over comparable products.
F. Public works projects.
a. Purchasing Procedures. Procedures for any public work or improvement shall be
governed by RCW 35.23.352 and 39.04.155.. At such time as the City’s population
exceeds twenty thousand, purchases shall be governed by RCW 35.22.620.(RCW
35A.40.210). Cost for a public works project includes all amounts paid for
materials, supplies, equipment, and labor on the construction of that project which
is inclusive of sales tax, unless exempted by law.
a.b. Unit Price Contracts for Public Work Projects. Unit Price contracts for public works
projects will be procured with the processes identified in subsection e (small
works roster process) below. Individual task orders of unit price contracts shall
not exceed $50,000.
b.c. Purchasing Limitations. The Mayor may authorize the purchase and exec ution of
public works projects equal to or less than the dollar threshold for small works
projects as provided under RCW 39.04.155 as amended.
c.d. Competitive Bids. "Craft" or "trade" means a recognized construction trade or
occupation for which minimum wage categories are established by the Department
of Labor and Industries of the State of Washington in the locality of the City's
projects or purchases.
i. Projects for single craft or multiple crafts with a reasonably anticipated
price equal to or less than the dollar thresholds as provided under RCW
35.23.352, as amended, require a minimum of 2 – 4 written quotes. All
purchases require an executed contract.
ii. Projects for single craft or multiple crafts with a reasonably anticipated
price higher than the dollar thresholds as provided under RCW 35.23.352,
as amended, up to the limits set forth by RCW 39.04.155 as amended shall
either use the small works roster or a formal competitive bid procurement
process. All purchases require an executed contract.
d.e. Small Works Roster. There is established for the City of Arlington a small works
roster contract award process for accomplishment of public works projects with
an estimated value threshold as provided under RCW 39.04.155, as amended.
e.f. Roster List. The City of Arlington shall contract with the Municipal Research and
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22
Service Center (MRSC) annually to establish, maintain and manage a current roster
of eligible contractors from which the City may solicit bids for work on Small
Public Work Projects (Projects $3500,000 and under).
f.g. Process. Whenever work that has received City Council approval in the current
budget, or otherwise been approved by the City Council, is sought to be
accomplished using a small works roster, a City representative shall obtain
telephone, written or electronic quotations from contractors on the appropriate
small works roster to assure that a competitive price is established and to award
contracts to the lowest responsible bidder as follows:
i. A contract awarded from a small works roster need not be advertised.
Invitations for quotations shall include an estimate of the scope and nature
of the work to be performed as well as materials and equipment to be
furnished. However, detailed plans and specifications need not be included
in the invitation. This paragraph does not eliminate other requirements for
architectural or engineering approvals as to quality and compliance with
building codes.
ii. Quotations shall be invited from all contractors in the appropriate category
of the small works roster. As an alternative, quotations may be invited from
at least five (5) contractors on the appropriate small works roster who have
indicated the capability of performing the kind of work being contracted, in
a manner that will equitably distribute the opportunity among the
contractors on the appropriate roster. If the estimated cost of the work is
$250,000150,000 or more but less than or equal to the dollar threshold for
small works projects as provided under RCW 39.04.155, as amended, the
City may choose to solicit bids from less than all the appropriate
contractors on the appropriate small works roster but must also notify the
remaining contractors on the appropriate small works roster that
quotations on the work are being sought. The City has the sole option of
determining whether this notice to the remaining contractors is made by:
1. Publishing notice in a legal newspaper in general circulation in the
area where the work is to be done;
2. Mailing a notice to these contractors; or
3. Sending a notice to these contractors by facsimile or other electronic
means.
iii. For purposes of this policy, "equitably distribute" means that the City may
not favor certain contractors on the appropriate small works roster over
other contractors on the appropriate small works roster who perform
similar services. At the time bids are solicited, the City representative shall
not inform a contractor of the terms or amount of any other contractor's bid
for the same project.
iv. A written record shall be made by the project manager of each contractor's
bid on the project and of any conditions imposed on the bid. Immediately
after an award is made, the bid quotations obtained shall be recorded, open
to public inspection, and made available on the city’s website.by telephone
inquiry.
23
v. At least once every year, the City Clerk or his/her designee shall provide a
list of the contracts awarded under this process to the City Council and to
the general public. . The list will be posted on the city’s website and
available to the general public. The list shall contain the name of the
contractor or vendor awarded the contract, the amount of the contract, a
brief description of the type of work performed or items purchased under
the contract, and the date it was awarded. The list shall also state the
location where the bid quotations for these contracts are available for
public inspection.
g.h. Determining Lowest Responsible Bidder. Where bidders have not been
prequalified, the City shall award the contract for the public works project to the
lowest responsible and qualified bidder; provided, all bids may be rejected and the
City may call for new bids.
h.i. Cancellation of Invitations for Quotations or Bids. An invitation for quotations or
bids may be canceled at the discretion of the department director. The reasons
shall be made part of the contract file. Each invitation for quotations or bids issued
by the City shall state that the invitation may be canceled. Notice of cancellation
shall be sent to all parties that have been provided with a copy of the invitation.
The notice shall identify the invitation for quotations or bids and state briefly the
reasons for cancellation.
i.j. Limited Public Works Process. The City may use the limited public works process
to award public works projects as provided under RCW 39.04.155, as amended.
j.k. Formal Competitive Bid. For public works not using a small works roster, the
formal competitive bid process, as defined by applicable RCW’s, shall be used.
k.l. Bid Deposit, Performance Bond and Non-collusion Affidavit for Public Works
Improvement Projects. Whenever competitive quotes or bids are required, a
bidder may be required make a deposit in the form of a certified check or bid bond
in an amount equal to not less than five (5) percent of the total bid, which
percentage shall be specified in the call for bids. As part of any bid submitted, the
bidder shall be required to warrant that the bid is a genuine bid, and that he/she
has not entered into collusion with any other bidder or any other person. All public
works contractors shall furnish a performance bond in an amount equal to the
total amount of the contract and an executed and notarized non-collusion affidavit
on a form approved by the City Attorney. Pursuant to RCW 39.08.010, for
contracts of $150,000 or less, at the option of the contractor, the public entity may
retain 10% of the contract amount for a period of thirty (30) days after date of
final acceptance or until receipt of all necessary releases from the Department of
Revenue, Employment Security Department and the Department of Labor and
Industries, whichever is later. In lieu of a performance bond on contracts of
$35,000 or less, per RCW 39.08.010, a contractor may choose to have 50 percent of
the contract retained for a period of 30 days after the date of final acceptance.
G. Contracts and Agreements for Personal and Professional Services, Purchased Services and
Architectural and Engineering Services.
a. Purchasing Limitations. Purchase limitations apply to the cost related to the
24
acquisition of services to fill a specific business need. Cost is inclusive of any
required sales tax and related expenses.
i. All initial agreements with governmental agencies require council approval;
annual renewal or extension of existing contracts and agreements require
the Mayor's approval.
b. Unit PriceOn-Call Service Contracts. Unit PriceOn-call service contracts will be
procured with the processes identified in subsection e (purchased services)C
below. Individual task orders of unit priceon-call service contracts shall not exceed
$50,000.
c. Architectural and Engineering Services Contracts.
i. Procedures set forth in Chapter 39.80 RCW shall be followed for contracts
for architectural and engineering services, as defined in RCW 39.80.020.
ii. Roster. The City of Arlington shall contract with the Municipal Research and
Service Center (MRSC) to establish, maintain and manage a current roster
of eligible Architectural, Landscape Architectural and Engineering
consultants from which the City may solicit bids for contract for providing
these services.
iii. Contracts Less Than $100,000. Contracts that have an estimated cost of less
than $100,000 can be procured using an informal request for qualification
process. This process requires the City representative to develop a written
scope of the project and any criteria used to select the service provider and
then select a qualified contractor from the City's architectural, landscape
architectural, and engineering service roster. If the City representative does
not choose to use the appropriate roster, then a formal request for
qualification process must be followed.
iv. Contracts Greater Than $100,000. Contracts that have an estimated cost in
excess of $100,000 must use a formal request for qualification (RFQ)
process. The development of an RFQ along with the proper public
notification shall be made in accordance with procedures adopted by the
finance department in the best interest of the City; provided, however, that
the Mayor may in the following circumstances waive the RFQ process for
contracts greater than $100,000, and allow the acquisition of services from
the City's architectural, landscape architectural and engineering services
roster:
1. It is deemed in the best interest of the City to expedite the
acquisition of services; or
2. It can be demonstrated that there are sufficient consultants on the
roster that possess the required qualifications to perform the scope
of work; or
3. A consultant on the City's roster has previously provided satisfactory
service to the City, has previously provided services related to the
specific project, and has the qualifications to perform the scope of
work.
v. Contract Required. A contract is required to purchase archite ctural,
landscape architectural, and engineering services.
25
d. Personal and Professional Services (Services which are not Architectural,
Landscape Architectural, and Engineering Services).
i. Roster. The City of Arlington shall contract with the Municipal Research
and Service Center (MRSC) to establish, maintain and manage a current
roster of personal and professional services from which the City may solicit
bids for contract for providing these services.
ii. Contracts Less Than $100,000. Contracts that have an estimated cost of less
than $100,000 can be procured using an informal request for proposal
process such as selection off of the MRSC published contractor list. This
process requires the City representative to develop a written scope of the
project and any criteria used to select the service provider. The City
representative will use this information when selecting the contractor to
provide the services. Multiple proposals are optional and at the discretion
of the department director. If multiple proposals are used to make a
selection, a standard process must be used for obtaining all proposals.
iii. Contracts in Excess of $100,000. Contracts that have an estimated cost in
excess of $100,000 shall be procured using a formal request for proposal
(RFP) process. The development of an RFP along with the proper public
notification shall be made in accordance with procedures adopted by the
finance department in the best interest of the City.
iv. Contract Required. A contract is required to purchase personal and
professional and nonprofessional services.
e. Purchased Services over $7,500 up to $50,000 – Informal Quotes.
i. A City representative shall make an effort to contact at least three vendors.
The number of vendors contacted may be reduced if the item being sought
is only available from a smaller number of vendors. When fewer than three
quotes are requested or if there are fewer than three replies, an explanation
shall be placed in the procurement file.
ii. Whenever possible, quotes will be solicited on a lump sum or fixed unit
price basis.
iii. At the time quotes are solicited, the City representative shall not inform a
vendor of any other vendor's quote.
iv. A written record shall be made by the City representative of each vendor's
quote on the purchased services.
v. All of the quotes shall be collected and presented at the same time to the
appropriate designee as appropriate for consideration, determination of the
lowest responsible vendor and award of purchase.
1. Whenever there is a reason to believe that the lowest acceptable
quote is not the best price obtainable, all quotes may be rejected and
the City may obtain new quotes or enter into direct negotiations to
achieve the best possible price. In this case, the department shall
document, in writing, the basis upon which the determination was
made for the award.
f. Purchased Services over $50,000 – Competitive Bid.
i. General. Unless otherwise specifically approved by the City Council, all
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26
contracts relating to purchased services shall be in accordance with the City
budget.
ii. Invitation for Bids. An invitation for bids shall be issued which shall include
the specifications and the contractual terms and conditions applicable to
the procurement.
iii. Public Notice. Public notice of the invitation for bids shall be published at
least once in a newspaper of general circulation within the City. The public
notice shall state the date and time of bid opening. Bids not received by the
date and time stated for bid opening will not be accepted or considered.
iv. Bid Opening. Bids shall be opened publicly and recorded at the time and
place designated in the invitation for bids.
v. Withdrawal of Bids - Cancellation of Awards. Bids may be modified or the
bid may be withdrawn by written notice received in the office designated in
the invitation for bids prior to the time set for opening. After bid opening,
withdrawal of bids shall be permitted only to the extent that the bidder can
show by clear and convincing evidence presented in a sworn affidavit or
declaration submitted no later than 5:00 p.m. on the first business day after
bid opening, that a clerical mistake was made and not a mistake in
judgment, and the bid price actually intended. All decisions to permit the
withdrawal of bids after bid opening, or to cancel awards or contracts based
on bid mistakes, shall be made by the Mayor after consulting with legal
counsel.
vi. Award. The City Council shall award purchases for amounts greater than
the limits as identified in the City budget and for purchases not included in
the adopted budget. The award of bid shall be made to the lowest
responsible bidder whose bid meets the specifications and evaluation
criteria set forth in the invitation for bids. The Ci ty may reject all bids at its
discretion.
vii. Lowest Responsible Vendor. The following factors, in addition to price, may
be taken into account by the City in determining the lowest responsible
vendor; these criteria shall also apply in selecting products or services
either offered with, or associated indirectly with, City programs or facilities:
viii. Any preferences provided by law to local products and vendors;
ix. The ability, capacity, and skill of the vendor to perform the contract;
x. The character, integrity, reputation, judgment, experience, and efficiency of
the vendor;
xi. Whether the vendor can perform the contract within the time specified;
xii. The quality of performance of previous contracts or services;
xiii. The previous and existing compliance by the vendor with laws relating to
the contract;
xiv. Such other information as may be secured having a bearing on the decision
to award the contract.
iv.xv.
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27
H. Sole Source Procurement. A contract for the provision of services may be awarded
without complying with the bidding requirements of this policy when the department
director determines in writing, subject to Council approval through resolution, after
conducting a good faith review of available resources, that there is only one source of the
required services. The department director or his/her designee shall conduct
negotiations, as appropriate, as to price, terms, and delivery time. Sole source purchases
shall be made available for public inspection.
I. Interlocal joint purchasing agreements.
Cooperative Purchasing. The City may enter into interlocal governmental cooperative
purchasing arrangements with other public agencies similarly authorized under RCW
39.34.030 when the best interests of the City of Arlington would be served thereby. Any
cooperative purchasing agreement shall set forth fully the purposes, powers, rights,
objectives and responsibilities of the contracting parties and shall be governed by the
requirements of State law in regard to competitive bidding, when applicable. The
competitive bid process of the original jurisdiction shall substitute for Arlington's. All
interlocal joint purchasing agreements shall be presented to the City Council for prior
approval. Originating agency’s bid process shall be vetted to assure compliance with all
applicable RCW’s.
J. Real property acquisition.
a. Real Property - Mayor's Acquisition Authority. The Mayor or designee is
authorized, in the following instances, to accept by gift or acquire dedications,
easements, rights- of-way, fee estates or other interests in real property for use by
or on behalf of the City or any department of the City:
i. Minor Acquisitions. Any such acquisition where the estimated value is less
than $10,000.
ii. All other real property acquisitions will be submitted to the City Council for
approval.
b. Real Property Mayor's Leasing Authority
i. The Mayor or designee is authorized to execute leases of real property on
behalf of the City where the term of the lease does not exceed one year and
the consideration does not exceed $10,000 per year as budgeted by the City
Council.
ii. A lease that exceeds the limits stated in subsection (b)(i) of this section,
shall be submitted to the council for approval.
c. Real Property – Mayor’s Selling and Conveyancing Authority
i. The Mayor or designee is authorized to transfer or acquire easements,
licenses or similar interests in real property when there is no financial
consideration for the transfer and when the form of the easement is
approved by the City Attorney and City Administrator. The Council shall be
provided copies of such easements, licenses or other documents within
thirty (30) days after signing and recording of the easements.
ii. All easements, licenses or other conveyances of real property shall be
submitted to the Council for approval.
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28
ii.
K. Telecommunications and Data Processing Purchases. RCW 39.04.270 allows local
governments to use a competitive negotiation process when purchasing
telecommunications and electronic data processing computer equipment or software
instead of traditional competitive bidding. This alternative process requires:
a. A request for proposals must be published in a newspaper of general circulation at
least 13 days before the submission deadline.
b. The RFP must identify evaluation factors, including price.
c. Reasonable procedures for technical evaluation of the proposal must be used for
awarding the contract.
d. The contract must be awarded to the qualified bidder whose proposal is most
advantageous to the City.
e. The agency may reject all proposals for good cause and request new proposals.
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29
CITY OF ARLINGTON CONTRACT AUTHORIZATION SUMMARY
Assumes all expenditures are included in adopted operating and capital improvement
budgets. If the expenditure is not adopted in operating and capital improvement budgets,
Council authorization of the budget amendment is required prior to contract. Additionally, if
contracts/purchases are included in the adopted budget and have been approved through an
applicable committee or commission, whose authority has been granted by council through
Arlington Municipal Code, those contracts/purchases do not need separate approval by
council.
Department Directors shall not assign signature authority to other staff.
CCCONTRACT TYPE DDOLLAR
LIMIT-BID
THRESHOLDS
PROCESS SIGNATURE
AUTHORITY
OTHER
Public Works-single
trade or craft
Under
$75,50040,000
Requires a
minimum of
32-4 written
quotes.
Up to $50,000 -
Department Director
Up to $75,500 - City
Administrator
Prevailing wage
Performance bond, unless
using limited small works
process
Award letter
Contract > $50,000
Public Works- single
trade of craft
$75,50140,001
up to
$350,000300,00
0
Federal
threshold is
$150,000 for
competitive bids
Small works
roster or
competitive
bids.
Up to $75,50050,000 –
City Administrator
Up to $150,000Between
$50,001 - $100,000 –
Mayor
Over $150,000100,001 -
Council
Prevailing wage
Insurance
Performance Bond, unless
using exception for projects
less than $150,000
Bid Bond, unless using
exception for projects less
than $150,000
Contract for
>$50,00040,000
Formatted Table
30
CONTRACT TYPE DOLLAR
LIMITBID
THRESHOLDS
PROCESS SIGNATURE
AUTHORITY
OTHER
Public Works-multi trade
or craft
Under
$116,15565,000
Requires a
minimum of
32-4 written
quotes.
Up to $50,000 -
Department Director
Up to $75,500 - City
Administrator
Up to $150,000 - Mayor
Prevailing wage
Insurance
Performance Bond, unless
using limited small works
process
Award letter
Contract > $50,000
Public Works-multi trade
or craft
$116,15665,001
up to
$350,000300,00
0
Federal
threshold is
$150,000 for
competitive bids
Small works
roster or
competitive
bids
Up to $150,000Between
$50,001 - $100,000 –
Mayor
Over $150,000100,001 –
Council
Prevailing wage
Insurance
Performance Bond, unless
using exception for projects
less than $150,000
Bid Bond, unless using
exception for projects less
than $150,000
Contract for
>$50,00065,000
Public Works Over
$350,000300,00
0
Federal
Threshold is
$150,000 for
competitive bids
Competitive
bids
Council Prevailing wage
Insurance
Performance Bond
Bid Bond
Contract
Materials, supplies,
equipment*
Between
$3,000 and
$7,500 up to
$30,000
Requires a
minimum of 3
written or
verbal quotes
Department Director
31
CONTRACT TYPE DOLLAR
LIMITBID
THRESHOLDS
PROCESS SIGNATURE
AUTHORITY
OTHER
Materials, supplies,
equipment*
$7,501-
$15,000
Formal Bid or
Vendor list
(must get 3
quotes)
Department Director
Materials, supplies,
equipment*
Over
$30,00015,000
CompetitiveF
ormal Bid
Up toBetween $15,001
and $50,000 – City
Administrator
Between $50,001 -–Up to
$150,000100,000 –
Mayor
Over $150,000100,001 -
Council
Materials, supplies,
equipment*
No limit Government
Bid
Up to $30,00015,000 –
Department Director
Up toBetween $15,001
and $50,000 – City
Administrator
Up to $150,000Between
$50,001 - $100,000 –
Mayor
over $150,000100,001 -
Council
Purchased Services
(delivery service, vehicle
inspection, herbicide
application, collection
services)
Under
$50,000
Anything over
$7.5005,000
requires a
minimum of 3
quotes
Up to $30,00025,000
Department Director
Up to Between $25,001 -
$50,000 - City
Administrator
Purchased Services
(delivery service, vehicle
inspection, herbicide
application, collection
services)
Over
$50,000
Chosen from
consultant
roster
Between $50,001Up to -
$150,000100,000 –
Mayor
Over $150,000100,001 -
Council
32
CONTRACT TYPE DOLLAR
LIMITBID
THRESHOLDS
PROCESS SIGNATURE
AUTHORITY
OTHER
Unit Price On-call service
contracts(legal, human
resources, design,
development review
services or those related
to public work projects)
Contract not to
exceed
$50,000
Chosen from
consultant
roster or
small works
roster
City Administrator
Personal and
Professional
ServicesNon-A&E
Consulting/professional
services
(meeting facilitation,
planning, real estate
brokers, legal or financial
servicescomprehensive
planning, feasibility
studies, preliminary
design)
Under $100,000 Chosen from
consultant
roster
Up to $30,00025,000
Department Director
Up to
Between $25,001 -
$50,000 - City
Administrator
Up to Between $50,001 -
$150,000100,000 –
Mayor
Personal and
Professional
ServicesNon-A&E
Consulting/professional
services
(meeting facilitation,
planning, real esate
brokers, legal or financial
services)comprehensive
planning, feasibility
studies, preliminary
design)
Over
$100,001
More than
$100,001
formal RFP
process
Over $150,000100,001 -
Council
A&E Services Under $100,000 Less than
$100,000
Chosen from
consultant
roster
Up to $30,00025,000
Department Director
Up toBetween $25,001 -
$50,000 - City
Administrator
Up toBetween $50,001 -
$150,000100,000 –
Mayor
Evaluate on performance
and qualifications
Negotiate contract after
selection
33
A&E Services Over $100,001 More than
$100,000
formal RFQ
process
Over $150,000100,001 -
Council
Publish RFQ
Evaluate on performance
and qualifications
Negotiate contract after
selection
*All vehicles, equipment and unbudgeted capital purchases over $7,500 require approval of Capital
Outlay Request form by Finance Director and Administration Department. All unbudgeted purchases,
capital or otherwise, require council approval prior to purchase and/or awarding the contract.
Cost Allocation
A. The City of Arlington desires to comply with all laws and recommendations in
calculating and receiving full cost recovery for services rendered to other funds.
B. Cost allocation is a method to identify and distribute indirect costs. Direct costs are
costs assignable to a specific objective, whereas indirect costs are costs incurred for
multiple cost objectives or not assignable to a specific cost objective without effort
disproportionate to the benefit received.
C. The Washington State Auditor’s Office prescribes the accounting and reporting of local
governments in the State of Washington under the Revised Code of Washington (RCW)
Washington State law provides, at RCW 43.09.210. It states in part:
Separate accounts shall be kept for each department, public improvement,
undertaking, institution, and public service industry under the jurisdiction of every
taxing body. All service rendered by, or property transferred from , one
department, public improvement, undertaking, institution, or public service
industry receiving the same, and no department, public improvement, undertaking
institution, or public service industry shall benefit in any financial manner
whatever by an appropriation of fund made for the support of another.
The RCW does not specifically address how “full value” is to be determined.
D. RCW 35A.33.122/35A.34.205/35.33.123 states:
Administration, oversight, or supervision of utility – Reimbursement from utility
budget authorized. Whenever any code city apportions a percentage of the city
manager’s, administrator’s, or supervisor’s time, or the time of other management
or general government staff, for administration, oversight, or supervision of a
utility operated by the city, or to provide services to the utility, the utility budget
may identify such services and budget for reimbursement of the city’s current
expense fund for the value of such services.
E. The Federal Office of Management and Budget (OMB) Circular A-87
OMB Circular A-87 establishes cost principals for State, local, and Indian Tribal
Governments for determining costs for Federal Awards. Item 5 of the Circular states
34
that, “The principals are for determining allowable costs only.” In defining allowable
costs, the Circular provides a definition of allocable costs at Attachment A, paragraph
C.3.a, “A cost is allocable to a particular cost objective if the goods or services involved
at chargeable or assignable to such cost objective in accordance with relative benefits
received.” The Circular further outlines costs that are allowable for charging the
Federal government and distinguishes those that are specifically excluded from
recovery.
F. Governmental Accounting Standards Board (GASB)
GASB is the independent organization that establishes and improves standards of
accounting and financial reporting for U.S. state and local governments. While GASB is
not a governmental agency and does not have enforcement authority, compliance with
GASB is tested by the Washington State Auditor’s Office’s annual audit of the City.
Allocated Costs
A. The City’s General Fund provides a variety of central services including but not limited
to; legal support, human resources, administrative functions, personnel services,
billing (utility and airport), processing accounts payable, budget and cash
management, payroll and information technology services. The City allocates these
indirect costs as follows:
a. Central services will be distributed based on a percentage of total fund
expenditures;
b. Expenditures will exclude inter-fund transfers to capital improvement and/or
reserve funds;
c. The previous year’s budgeted expenditures or previous year’s actual
expenditures will be used to determine each fund’s percent of the City’s budget
and to determine the amount to be budgeted for cost allocation;
d. At year end, the budgeted allocation will be reconciled to actual costs and
percent allocation;
e. The Transportation Benefit District (TBD) Fund is excluded as the TBD is its
own entity;
f. The Cemetery Endowment Fund is excluded because these funds are held in
trust and expenditures from the endowment fund will be captured in the
Cemetery Capital Fund.
f.g. The City Fiduciary Fund is excluded because these funds are being held on
behalf of another government and/organization until remitted.
B. It is important to maintain back-up documentation that indicates how each cost
allocation is determined and calculated.
C. The Airport is also authorized, through a Memo of Understanding with the Federal
Aviation Administration, to provide monetary support for Police and Fire/EMS
services to the Airport. This is accomplished through a survey of Police hours spent
patrolling on and around the Airport property. A new survey is to be completed
within a two year period following the last survey.
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36
Debt Management Policy
A. The objectives of the City’s Debt Management Policy will be:
a. To reduce the use of debt so that debt service payments will be a predictable
and manageable part of the operating budget.
b. To raise capital at the lowest cost, consistent with the need to borrow. This will
be accomplished by:
i. Keeping a high credit rating (while making attempts to strengthen credit
rating)
ii. Maintaining a good reputation in the credit markets by adjusting the
capital program for regular entry to the bond market and managing the
annual budget responsibly.
B. Professional service providers (underwriters, financial advisors, bond insurer’s, etc .)
may be selected through negotiation, RFQ process or City’s procurement policies.
C. Debt issues will be sold on competitive basis (except when conditions make a
negotiated sale preferable) and awarded to the bidder who produces the lowest
interest cost. Revenue bonds can be issued through a negotiated sale when the issue is
unusually large, the project is speculative or complex, the issue is a refunding, or the
market is unstable.
D. The term of long-term debt issued will not exceed the life of the projects financed.
Current operations will not be financed with long-term debt.
E. Short-term borrowing will not be used for operating purposes.
F. The City will comply with its obligation to inform the Municipal Securities Rulemaking
Board through the EMMA website (Electronic Municipal Market Access) any and all
continuing disclosure documents and annual financial statements. This site is used by
the ratings agencies and investors. The City’s annual audited financial report will be
sent to EMMA as soon as the State Auditor’s Office issues the report.
G. The City shall strive to maintain favorable current credit ratings.
H. The City will comply with all statutory debt limitations imposed by the Revised Code
of Washington (RCW). The City of Arlington debt will not exceed an aggregated total of
7.5% of the assessed valuation of the taxable property within the City. Compliance
with state law and this policy shall be documented each year.
The following individual percentages (as defined in state law) shall not be exceeded in
any specific debt category:
General Debt 2.5% of assessed valuation
Utility Debt 2.5% of assessed valuation
37
Open Space and Park facilities 2.5% of assessed valuation
I. No debt shall be issued for which the City is not confident that a sufficient, specifically
identified revenue source is available for repayment. The Finance Director shall
prepare an analytical review for this purpose prior to the issuance of any debt.
J. It shall be the policy of the City to limit bonded indebtedness to levels that permit
sufficient borrowing to support a reasonable rate of capital programming, permit a
level and pace of debt amortization within the City’s ability to pay, and support the
City’s credit rating objectives. It shall further be the policy of the City not to exceed
75% of City’s LTGO debt limit, unless approved by the City Council.
K. Credit enhancements shall be considered with a cost/benefit analysis for each long-
term bond issue.
L. Reserve accounts shall be maintained as required by bond ordinances and where
deemed advisable by the City Council. The city shall structure such debt service
reserves so that they do not violate IRS arbitrage regulations.
M. The City will maintain debt service coverage ratios as required for any bond issues.
N. Interfund borrowing may be used where such borrowing is effective. Interfund
borrowing will be approved and authorized by the City Council.
38
Investment Policy
A. Policy. It is the policy of the City of Arlington to invest its public funds in a manner
which will provide the highest investment return consistent with a high degree of
security while meeting the daily cash flow demands of the City and conforming to all
state statutes and local ordinances governing the investment of public funds. Cash
may, at the discretion of the Finance Director be invested separately by fund or be co-
mingled into a common investment portfolio and earnings from such portfolio
distributed at least quarterly. The Finance Director is authorized to manage the
investments described herein.
B. Scope. This investment policy applies to all financial assets of the City except: for
assets held in escrow and retirement funds managed by others such as state. City
financial assets are accounted for in the City's Annual Financial Report and include:
a. Funds
i. General Fund
ii. Special Revenue Funds
iii. Debt Service Funds
iv. Capital Project Funds
v. Enterprise Funds
vi. Internal Service Funds
vii. Trust Funds and Agency Funds
C. Prudence. The investments shall be made with judgment and care – under
circumstances then prevailing - which persons of prudence, discretion and intelligence
exercise in the management of their own affairs, not for speculation, but for
investment, considering the probable safety of their capital as well as the probable
income to be derived.
D. Objective. Funds of the City will be invested in accordance with the Revised Code of
Washington (RCW) 35A.40.050, the BARS manual and these policies. The primary
objectives, in order of priority, of the City's investment activities shall be as follows:
a. Legality: The City's investments will be in compliance with all statutes
governing the investment of public funds and the provisions of all applicable
bond ordinances.
b. Safety: Investments of the City shall be undertaken in a manner that seeks to
ensure the preservation of capital in the overall portfolio. To attain this
objective, diversification is required in order that potential losses on individual
securities do not exceed the income generated from the remainder of the
portfolio.
c. Liquidity: The City's investment portfolio will remain sufficiently liquid to
enable the City to meet all operating requirements, which might be reasonably
anticipated. The Finance Director shall maintain adequate liquidity by
maintaining a minimum balance in the LGIP.
d. Return on Investment: The City's investment portfolio shall be designed with
the objective of attaining a market rate of return throughout budgetary and
39
economic cycles, taking into account the City's investment risk constraints and
the cash flow characteristics of the portfolio.
e. Local Institutions: Local Institutions shall be given preference when they are,
in the judgment of the Finance Director, competitive with other institutions.
E. The Finance Director’s investment actions shall be governed by this policy.
F. The Finance Director shall be responsible for all transactions undertaken and shall
establish a system of controls to regulate all investment activities, and report
promptly to the Council any adverse development with any investment.
G. Ethics and Conflicts of Interest.
a. The Finance Officer shall refrain from personal business activity that could
conflict with proper execution of the investment program, or which could
impair their ability to make impartial investment decisions. The Finance Officer
shall disclose to the Mayor and the Council any material financial interests in
financial institutions that conduct business with the City, and she/he shall
further disclose any personal financial/investment positions that could be
related to the performance of the City's portfolio.
b. The City’s Finance Officer shall subordinate their personal investment
transactions to those of the City, particularly with regard to the time of
purchases and sales.
H. Authorized Financial Dealers and Institutions.
a. The Finance Director will maintain a list of financial institutions authorized to
provide investment services to the City of Arlington. In addition, a list will also
be maintained of approved security broker/dealers selected by credit
worthiness, who maintain an office in the State of Washington. These may
include "primary" dealers or regional dealers that qualify under US Securities
and Exchange Commission Rule 15c3-1 (uniform net capital rule). No public
deposit shall be made except in a qualified public depository as established by
State laws.
b. At the request of the City, financial institutions, brokers and dealers performing
investment services for the City shall provide their most recent financial
statements or Consolidated Report of Condition (“call report”) for review.
I. Authorized and Suitable Investments. The City may invest in any of the securities
identified as eligible investments as defined by RCW 35A.40.050. In general, these
consist of:
a. Investment deposits (certificates of deposits) with qualified public depositories
as defined in Chapter 39.58 RCW.
b. Certificates, notes or bonds of the United States, or other obligations of the
United States or its agencies, or of any corporation wholly owned by the
government of the United States whose securities carry full faith and credit
guarantees.
40
c. Obligations of government-sponsored corporations which are eligible as
collateral for advances to member banks as determined by the Board of
Governors of the Federal Reserve System. These include but are not limited to,
Federal Home Loan Bank notes and bonds, Federal Farm Credit Bank
consolidated notes and bonds, and Federal National Mortgage Association
notes.
d. Prime bankers' acceptances purchased on the secondary market. Repurchase
agreements for securities listed above.
e. The Washington Local Government Investment Pool (LGIP).
J. Collateralization.
a. Collateralization will be required on all repurchase agreements so as to
anticipate market changes and provide a level of security for all funds, the
collateralization level will be 102% of market value of principal and accrued
interest.
b. The City chooses to limit collateral to the obligations of the United States
Government and its agencies.
c. Collateral will always be held by an independent third party with whom the
entity has a current custodial agreement (except certificates of deposits). A
clearly marked evidence of ownership (safekeeping receipt) must be supplied
to the entity and retained.
d. Certificates of deposit are delivered to and held by the Finance Director until
they mature.
K. Safekeeping and Custody.
a. All investment securities purchased by the City, including collateral on
repurchase agreements, shall be held by the City or in safekeeping by the City's
custodian bank or a third party bank trust department, acting as agent for the
City under the terms of a custody or trustee agreement executed by the bank
and by the City. The primary agent shall issue a safekeeping receipt to the City
listing the specific instrument, rate, maturity, and other pertinent information.
b. All securities transactions, including collateral for repurchase agreements
entered into by the City shall be conducted on a delivery-versus-payment
(DVP) basis. Securities will be held by a third party custodian designated by the
City Finance Director and evidenced by safekeeping receipts.
L. Diversification. The City will diversify its investments by security type and issuer.
With the exception of US Treasury and Agencies of the United States government, and
the Washington State Local Government Investment Pool, no more than 50% of the
City's total investment portfolio will be invested in a single security and no more than
25% will be invested with a single issuer.
M. Maximum Maturities.
a. To the extent possible, the City will attempt to match its investments with
anticipated cash flow requirements. Unless matched to a specific cash flow, the
41
City will not directly invest in securities maturing more than five (5) years from
the date of purchase. The average maturity will be consistent with the liquidity
objective. However, the City may collateralize its repurchase agreements using
longer-dated investments not to exceed 10 years.
b. The City’s reserve funds may be invested in securities not to exceed (10) years
if the maturity of such investments is made to coincide as nearly as possible
with the expected use of funds.
c. The purpose of permitting a portion of the investments to have longer
maturities is to recognize that funds may yield higher yields when invested for
longer periods of time.
N. Internal Controls. The Finance Director shall establish a system of internal controls,
which shall be reviewed annually by an external auditor. This review will provide
internal control by assuring compliance with policies and procedures.
O. Performance Standards. The City's investment portfolio will be designed to obtain a
market average rate of return during budgetary and economic cycles, taking into
account the City's investment risk constraints and cash flow needs.
P. Investment Strategy. The City’s investment strategy is active. As a result, securities are
purchased and sold as it best meets the needs of the City as determined by the Finance
Director. The Finance Director will be authorized to trade before maturity if it is in the
best interest of the City to do so.
Q. Reporting. The Finance Director will determine what investment information will be
included in the monthly financial report.
42
GLOSSARY
Accrued Interest: The interest accumulated on a bond since its dated date or the most recent
date to which interest has been paid by the City. The buyer of the bond pays the market price
and accrued interest, which is payable to the seller.
Agencies: Federal agency securities.
Asked: The price at which securities are offered.
Bankers' Acceptance (BA): A draft or bill or exchange accepted by a bank or trust company.
The accepting institution guarantees payment of the bill, as well as the issuer.
Bond: A long-term debt security (IOU) issued by a government or corporation. Generally
pays a stated fixed rate of interest, and returns the face value at maturity.
Book Value: The amount at which an asset is carried on the books of the owner. The book
value of an asset does not necessarily have a significant relationship to market value.
Broker: A middleman who brings buyers and sellers together for a commission paid by the
initiator of the transaction or by both sides; they do not position. In the money market,
brokers are active in markets in which banks buy and sell money and in interdealer markets.
Call Option: The right to prepay or redeem a security at a predetermined price on or after a
specified future date that is earlier than its scheduled maturity date.
Certificate of Deposit (CD): A time deposit with a specific maturity earning a specified rate
of return evidenced by a certificate. Certificates of Deposit bear rates of interest in line with
money market rates current at the time of issuance.
Collateral: Securities, evidence of deposit or other property which a borrower pledges to
secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of
public monies.
Confirmation: A document used to state and supplement in writing the terms of a
transaction which have previously been agreed to verbally.
Coupon: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder
on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a
payment date (not used since 1982).
CUSIP Number (COMMITTEE OR UNIFORM SECURITIES IDENTIFICATION PROCEDURES):
An identifying number assigned to a publicly traded security. A nine-digit code is
permanently assigned to each issue and is generally printed on face of the security if it is in
physical form.
43
Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and
selling for his or her own account.
Delivery versus Payment: There are two methods of delivery of securities: delivery versus
payment and delivery versus receipt (also called free). Delivery versus payment is delivery of
securities simultaneously with an exchange of money for the securities. Delivery versus
receipt is delivery of securities simultaneously with an exchange of a signed receipt for the
securities.
Discount: There is "original issue discount" and "market discount." Original issue discount is
the difference between the cost1price of a security when first offered for sale to the general
public and its face value at maturity when quoted at lower than face value. Original issue
discount is treated as interest. Market discount is the difference between principal amoun t of
an outstanding security (reduced by any original issue discount) and the value of that
security in the then-current market (if lower than its principal amount). If a security is
bought at a market discount and later sold at a gain, the gain is taxable income.
Diversification: Dividing investment funds among a variety of securities offering
independent returns.
Farm Credit Discount Notes and Bonds: Secured joint obligations of Farm Credit Banks
that are issued with a minimum face value of $50,000 with maturities ranging from 5 to 360
days.
Federal Credit Agencies: Agencies of the Federal Government set up to supply credit to
various classes of institutions and individuals, e.g., S&L's, small business firms, students,
farmers, farm cooperatives, and exporters.
Federal Funds Rate: The rate of interest at which Federal funds are traded between banks.
This rate is currently pegged by the Federal Reserve through open market operations.
Federal Home Loan Banks (FHLB): The institutions that regulate and lend to savings and
loan associations. The Federal Home Loan Banks play a role analogous to that played by the
Federal Reserve Banks vis-à-vis member commercial banks.
Federal National Mortgage Association (FNMA): FNMA, like GNMA was
chartered under the Federal National Mortgage Association Act in 1938. FNMA is the
corporation's purchases include a variety of adjustable mortgages and second loans in
addition to fixed-rate mortgages FNMA's securities are also highly liquid and are widely
accepted. FNMA assumes and guarantees that all security holders will receive timely payment
of principal and interest.
Liquidity: A liquid asset is one that can be converted easily and rapidly into cash without a
substantial loss of value.
44
Local Government Investment Pool (LGIP): The aggregate of all funds from political
subdivisions that are placed in the custody of the State Treasurer for investment and
reinvestment.
Market Value: The price at which a security is trading and could presumably be purchased
or sold.
Master Repurchase Agreement: A written contract covering all future transactions
between the parties to repurchase -- reverse purchase agreements that establishes each
party's rights in the transactions. A master agreement will often specify, among other things
the right of the buyer-lender to liquidate the underlying securities in the event of default by
the seller-borrower.
Maturity: The date upon which the principal or stated value of an investment becomes due
and payable.
Portfolio: A collection of securities held by an investor.
Primary Dealer: A group of government securities dealers that submit daily reports of
market activity and positions and monthly financial statements to the Federal Reserve Bank
of New York and are subject to its informal oversight. Primary dealers include Securities and
Exchange Commission (SEC) registered securities broker-dealers, banks, and a few
unregulated firms.
Principal: The stated face amount of an instrument, exclusive of accrued interest.
Prudent Person Rule: An investment standard. In some states the law requires that a
fiduciary such as a trustee may invest money only in a list of securities selected by the
state-the-so-called legal list. In other states the trustee may invest in a security if it is one
which would be bought by a product person of discretion and intelligence who is seeking a
reasonable income and preservation of capital.
Qualified Public Depositories: A financial institution which does not claim exemption from
the payment of any sales or compensating use or ad valorem taxes under the laws of this
state, which has segregated for the benefit of the Public Deposit Protection Commission
eligible collateral having a value of not less than its maximum liability and which has been
approved by the Public Deposit Protection Commission to hold public deposits.
Repurchase Agreement (RP or REPO): A holder of securities sells these securities to an
investor with an agreement to repurchase them at a fixed price on a fixed date. The security
"buyer" in effect lends the "seller" money for the period of the agreement, and the terms of
the agreement are structured to compensate him for this. Dealers use RP extensively to
finance their positions. Exception: When the Fed is said to be doing RP, it is lending money,
that is, increasing bank reserves.
45
Safekeeping: A service to customers rendered by banks for a fee whereby securities and
valuables of all types and descriptions are held in the bank's vaults for protection.
Securities and Exchange Commission (SEC): Agency created by congress to protect
investors in securities transactions by administering securities legislation.
SEC Rule 15c3-1: SEC uniform net capital rule requiring brokers and dealers to maintain
certain amounts of net capital.
Treasury Bills: A non-interest bearing discount security issued by the US Treasury to finance
the national debt. Most bills are issued to mature in three months, six months or one year.
Treasury Bonds: Long-term US Treasury securities having initial maturities of more than
ten years.
Treasury Notes: Intermediate term coupon bearing U.S. Treasury securities having initial
maturities of from one to ten years.
Uniform Net Capital Rule: Securities and Exchange Commission requirement that member
firms as well as nonmember broker-dealers in securities maintain a maximum ratio of
indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans and commitments to
purchase securities, one reason new public issues are spread among members of
underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
Yield: The rate of annual income return on an investment expressed as a percentage. Income
Yield is obtained by dividing the current dollar income by the current market price for the
security. Net Yield or Yield to Maturity is the current income Yield minus any premium above
par or plus any discount in purchase price, with the adjustment spread over the period from
the date of purchase to the date of maturity of the bond.