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Home My WebLink About07-31-23 Revised Special Council Meeting SPECIAL ACCOMMODATIONS: The City of Arlington strives to provide accessible meetings for people with disabilities. Please contact the ADA coordinator at (360) 403-3441 or 711 (TDD only) prior to the meeting date if special accommodations are required. CALL TO ORDER Mayor Barb Tolbert PLEDGE OF ALLEGIANCE ROLL CALL Mayor Barb Tolbert – Julie APPROVAL OF THE AGENDA Mayor Pro Tem Jan Schuette INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS 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 Jan Schuette 1. Minutes of the July 17 and July 24, 2023 Council meetings ATTACHMENT A 2. Accounts Payable 3. Interlocal Agreement with Snohomish County for ATTACHMENT B Solid Waste Services 4. Sole Source Resolution for Wastewater Treatment Plant Pump ATTACHMENT C Purchase and Repair 5. Resolution Adopting Revised Financial Policies ATTACHMENT D NEW BUSINESS 1. Amendment #1 to the RH2 Contract for the 520 Booster Pump Station ATTACHMENT E Install Project Staff Presentation: Jim Kelly Council Liaison: Don Vanney 2. Dedication of Real Property for Public Right of Way ATTACHMENT F Staff Presentation: Marc Hayes Council Liaison: Heather Logan Arlington City Council Special Meeting Monday, July 31, 2023 at 6:00 pm City Council Chambers – 110 E 3rd Street SPECIAL ACCOMMODATIONS: The City of Arlington strives to provide accessible meetings for people with disabilities. Please contact the ADA coordinator at (360) 403-3441 or 711 (TDD only) prior to the meeting date if special accommodations are required. 3. Smokey Point Park Update ATTACHMENT G Staff Presentation: Marc Hayes 4. Architectural and Engineering Services for the Police Impound Facility ATTACHMENT H and Public Works Storage Staff Presentation: Paul Ellis Council Liaison: Debora Nelson COMMENTS FROM COUNCILMEMBERS INFORMATION/ADMINISTRATOR & STAFF REPORTS MAYOR’S REPORT EXECUTIVE SESSION RECONVENE ADJOURNMENT Mayor Pro Tem Jan Schuette / Mayor Barb Tolbert DRAFT Page 1 of 4 Council Chambers 110 East 3rd Street Monday, July 17, 2023 Councilmembers Present: Don Vanney, Heather Logan, Debora Nelson, Marilyn Oertle, Jan Schuette, Michele Blythe, and Yvonne Gallardo-Van Ornam. Council Members Absent: None. Staff Present: Mayor Barb Tolbert, Paul Ellis, James Trefry, Mike Gilbert, Jim Kelly, Kris Wallace, City Attorney Steve Peiffle, Tony Orr, and Wendy Van Der Meersche. Also Known to be Present: Kathy Vanney, Bob Nelson, Sid Logan, Steve Maisch, Holly Sloan-Buchanan, Scott Boe, Dawnelle Holt, Liz Vogeli, Madeline Gerwick, Sue Ward, Chris Edwards, Tyler Johnson, Ryan Johnson, Tom Howie, Linda Parrish, Carolyn Lance, Kenzie, Killebrew, Kaitlyn Lindsey, Delphine Ferreira, and other members of the public, and Saffron Coehlo, who joined with Zoom. Mayor Barb Tolbert called the meeting to order at 6:00 p.m., and the Pledge of Allegiance and roll call followed. APPROVAL OF THE AGENDA Mayor Pro Tem Jan Schuette moved to approve the agenda as presented. Councilmember Don Vanney seconded the motion, which passed with a unanimous vote. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS None. PROCLAMATIONS None. Mayor Tolbert introduced City Attorney Steve Peiffle, who stated that the City has continued to solicit advice regarding its responsibility to its citizens and to the Arlington Pride organization. Mr. Peiffle has provided legal counsel, and there have been discussions with other legal counsel. There is an upcoming meeting Wednesday that will be helpful in discussing this issue. The City will continue to do it’s best to follow the law established under both the state and federal constitutions, Washington State Law and Case Law Authority. Mr. Peiffle stated that this is not an issue that the City is ignoring. Minutes of the Arlington City Council Meeting Minutes of the City of Arlington City Council Meeting July 17, 2023 Page 2 of 4 PUBLIC COMMENT Saffron Coehlo, Lake Stevens, provided comments, via Zoom. Scott Boe, Arlington, provided comments. Dawnelle Holt, Arlington, provided comments. Liz Vogeli, Everett, provided comments. Madeline Gerwick, Arlington, provided comments. Sue Ward, Arlington, provided comments. Chris Edwards, Darrington, provided comments. Tyler Johnson, Arlington, provided comments. Ryan Johnson, Arlington, provided comments. Tom Howie, Snohomish County, provided comments. Linda Parrish, Arlington, provided comments. Carolyn Lance, Arlington, provided comments. Kenzie Killebrew, Arlington, provided comments. Kaitlyn Lindsey, Arlington, provided comments. Delphine Ferreira, Arlington, provided comments. CONSENT AGENDA Mayor Pro Tem Jan Schuette moved, and Councilmember Marilyn Oertle seconded the motion to approve the Consent Agenda that was unanimously carried: 1. Minutes of the July 3 and July 10, 2023 Council meetings 2. Accounts Payable: Approval of Petty Cash Checks #2024; EFT Payments and Claims Checks: #108537 through #108639 dated July 4, 2023 through July 17, 2023 for a total of $517,282.90; Approval of Payroll EFT Payments and Check #30288 through #30295 dated June 1, 2023 through June 30, 2023 in the amount of $1,323,345.93. PUBLIC HEARING None. NEW BUSINESS Mobile Integrated Health Program City Administrator Paul requested Council approve Amendment No. 1 to the contract with Washington State Health Care Authority and the contract with Center for Justice Social Work. The City received $750,000 in grant funding to continue the Mobile Integrated Health Program an additional two years. The agreement will begin August 1, 2023, and conclude July 31, 2025. The current year-end report is due by July 31, 2023, and will be provided to City Council as soon as it is available. Minutes of the City of Arlington City Council Meeting July 17, 2023 Page 3 of 4 The City previously entered into a contract with Washington State Health Care Authority (HCA) to provide support to individuals experiencing behavioral distress, with funds distributed by the American Rescue Plan Act (ARPA). Those funds are paid to the Center for Justice Social Work (CJSW). A brief discussion followed with Mr. Ellis answering Council questions. Mayor Pro Tem Jan Schuette moved, and Councilmember Heather Logan seconded the motion to approve the contract amendment with HCA and approve the contract with CJSW and authorized the Mayor to sign both documents. The motion passed unanimously. Acceptance of Phase 1 of the 173rd Street Project Public Works Director Jim Kelly requested Council approve the final acceptance of the 173rd St Phase 1 Project that was completed by Reece Construction, Inc. Councilmember Don Vanney moved, and Councilmember Debora Nelson seconded the motion to approve final acceptance of the 173rd St Phase 1 Project completed by Reece Construction, Inc. The motion passed unanimously. Acceptance of 40th Avenue and 172nd Street Intersection Project Public Works Director Jim Kelly reviewed the final acceptance of the 40th Ave/172nd St Intersection Project that was completed by Interwest Construction, Inc. Councilmember Michele Blythe moved, and Councilmember Debora Nelson seconded the motion to approve final acceptance of the 40th Ave and 172nd St Intersection Project completed by Interwest Construction, Inc. The motion passed unanimously. Renewal of Water Service Agreement with Snohomish County PUD Public Works Director Jim Kelly requested Council approve the renewal of the Water Service Agreement with Snohomish County PUD in order for Arlington to continue to purchase water to supplement City water needs. Councilmember Debora Nelson moved, and Councilmember Don Vanney seconded the motion to approve the wholesale water agreement between the City of Arlington and Snohomish PUD for supplemental water purchase. The motion passed unanimously. Low Bid Award for the 204th Street and 74th Avenue Intersection Public Works Director Jim Kelly requested Council award the 204th/74th Intersection Project to Reece Construction Company. Councilmember Yvonne Gallardo-Van Ornam moved, and Councilmember Michele Blythe seconded the motion to award the 204th/74th Intersection Project to Reece Construction Company in the amount of $1,199,999.00 and authorized the Mayor to sign the Construction Contract. The motion passed unanimously. Minutes of the City of Arlington City Council Meeting July 17, 2023 Page 4 of 4 COMMENTS FROM COUNCILMEMBERS Councilmember Don Vanney stated he will be attending a public safety crime prevention committee meeting in Tacoma. ADMINISTRATOR & STAFF REPORTS None. MAYOR’S REPORT None. EXECUTIVE SESSION None. ADJOURNMENT With no further business to come before the Council, the meeting was adjourned at 6:53 p.m. _________________________________________ Barbara Tolbert, Mayor DRAFT Page 1 of 3 Council Chambers 110 East 3rd Street Monday, July 24, 2023 Councilmembers Present: Don Vanney, Debora Nelson, Jan Schuette, Michele Blythe, Yvonne Gallardo-Van Ornam, and Heather Logan via Zoom. Council Members Absent: Marilyn Oertle, excused. Staff Present: Mayor Barb Tolbert, Paul Ellis, Jim Kelly, Kris Wallace, Kristin Garcia, Mike Gilbert, Tony Orr, City Attorney Steve Peiffle, and Julie Petersen. Also Known to be Present: Kathy Vanney, Steve Maisch, and Holly Sloan-Buchanan. Mayor Barb Tolbert called the meeting to order at 6:00 pm, and the Pledge of Allegiance and roll call followed. APPROVAL OF THE AGENDA Mayor Pro Tem Jan Schuette moved to approve the agenda as presented. Councilmember Debora Nelson seconded the motion, which passed with a unanimous vote. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS None. WORKSHOP ITEMS – NO ACTION WAS TAKEN Amendment #1 to the RH2 Contract for the 520 Booster Pump Station Install Project Public Works Director Jim Kelly reviewed the Amendment. In 2021 the city entered into a contract with RH2 for Hydraulic Analysis and preparation of a DOH. Engineering Report for a proposed booster pump station at the 520 Reservoir site (520 Booster Pump Station) and a new potable water reservoir serving the 640-pressure zone. The Engineering Report was approved by DOH and we are ready to begin designing the 520 Booster Pump Station project. Amendment 1 will include funds to cover the scope of work for the design phase. Discussion followed with Mr. Kelly answering Council questions. Interlocal Agreement with Snohomish County for Solid Waste Services Public Works Director Jim Kelly reviewed the terms of the Interlocal Agreement for Snohomish County Solid Waste Services. RCW 70A.205.010 establishes a comprehensive statewide program for solid waste handling, recovery, and/or recycling to prevent pollution and conserve the resources of this state. Local governments are assigned the primary responsibility for implementing this Minutes of the Arlington City Council Workshop Minutes of the City of Arlington City Council Workshop July 24, 2023 Page 2 of 3 program, local governments can partner with Counties on the preparation of a Solid Waste Management Plan and for planned consistent solid waste operations. The City of Arlington has previously partnered with Snohomish County to meet the state’s solid waste requirement, the previous ILA with Snohomish County for Solid Waste Management was executed in 2008. The City has a very well-operating solid waste handling process (solid waste, recycling, and compostables) and it is recommended that we continue to partner with Snohomish County for Solid Waste Management. Sole Source Resolution for Wastewater Treatment Plant Pump Public Works Director Jim Kelly reviewed the Wastewater Treatment Plant Pump Sole Source Resolution. Based on engineering analysis and experience, the City of Arlington has elected to use Flygt Pumps and products in its wastewater system operations. Flygt Pumps and products are only sold and serviced by an authorized Flygt Products distribution and service facility. Whitney Equipment Company, Inc. in Woodinville, WA is the sole authorized Flygt Products distribution and service facility for Washington state. Staff is requesting Council authorize a sole source resolution for Whitney Equipment Company, Inc for procurement and servicing of Flygt Pumps and products. Discussion followed with Mr. Kelly answering Council questions. Resolution Adopting Revised Financial Policies Finance Director Kristin Garcia reviewed the changes that staff are proposing to update the city’s financial policies to keep in line with federal and state regulations and industry standards. Discussion followed with Ms. Garcia answering Council questions. June 2023 Financial Report Finance Director Kristin Garcia reviewed the June 2023 Financial Report. Discussion followed with Ms. Garcia answering Council questions. ADMINISTRATOR AND STAFF REPORTS City Administrator Paul Ellis reported that he attended the 211th Roundabout onsite meeting with the neighborhood and stakeholders that was held by Public Works and the SCJ consultant. MAYOR’S REPORT Mayor Tolbert thanked City Attorney Steve Peiffle, City Administrator Paul Ellis, and Lieutenant Mike Gilbert for their support over the last few months in preparation for Saturday’s events. COMMENTS FROM COUNCILMEMBERS Councilmembers Debora Nelson, Jan Schuette, and Michele Blythe shared their appreciation for the City staff’s leadership and professionalism during Saturday’s event. Councilmember Debora Nelson announced that she met with Finance Director Kristin Garcia to update the Lodging Tax Grant application. She suggested adding shade sails at the new Smokey Point Park. City Administrator Paul Ellis commented that the shade sails were included in the park plan. Minutes of the City of Arlington City Council Workshop July 24, 2023 Page 3 of 3 Councilmember Michele Blythe shared she went on a ride-along with Police Officer Megan Kidd and acknowledged her professionalism in working with the community members. COUNCILMEMBER REPORTS Councilmembers had nothing to report this evening. PUBLIC COMMENT None. REVIEW OF CONSENT AGENDA ITEMS FOR NEXT MEETING Councilmembers discussed and agreed to put the following items on the consent agenda: 1. Interlocal Agreement with Snohomish County for Solid Waste Services 2. Sole Source Resolution for Wastewater Treatment Plant Pump 3. Resolution Adopting Revised Financial Policies EXECUTIVE SESSION None. ADJOURNMENT With no further business to come before the Council, the meeting was adjourned at 6:35 p.m. _________________________________________ Barbara Tolbert, Mayor City of Arlington Council Agenda Bill CA #3 Attachment July 31, 2023 Interlocal Agreement with Snohomish County for Solid Waste Services 2023 Arlington - Snohomish County Interlocal Agreement regarding Solid Waste Management Public Works, Jim Kelly, Director 360-403-3505 EXPENDITURES REQUESTED: None BUDGET CATEGORY: N/A BUDGETED AMOUNT: N/A LEGAL REVIEW: DESCRIPTION: RCW 70A.205.010 establishes a comprehensive statewide program for solid waste handling, recovery, and/or recycling to prevent pollution and conserve the resources of this state. Local governments are assigned the primary responsibility for implementing this program, local governments can partner with Counties on preparation of a Solid Waste Management Plan and for planned, consistent solid waste operations. The City of Arlington has previously partnered with Snohomish County to meet the state’s solid waste requirement, the previous ILA with Snohomish County for Solid Waste Management was executed in 2008. The City has a very well operating solid waste handling process (solid waste, recycling, and compostables) and it is recommended that we continue to partner with Snohomish County for Solid Waste Management. ALTERNATIVES: Remand to staff for further information. Management. Interlocal Agreement Regarding Solid Waste Management City of Arlington Page 1 of 8 INTERLOCAL AGREEMENT REGARDING SOLID WASTE MANAGEMENT This INTERLOCAL AGREEMENT BETWEEN SNOHOMISH COUNTY AND ITS CITIES AND TOWNS REGARDING SOLID WASTE MANAGEMENT (the “Interlocal Agreement”), is made and entered into, by and between SNOHOMISH COUNTY, a Washington County (the “County”) and the CITY OF ARLINGTON, a Washington municipal corporation (the “City”) pursuant to Chapter 39.34 RCW. RECITALS A.The County and City executing this Interlocal Agreement are authorized and directed by chapter RCW 70A.205 to prepare a Comprehensive Solid Waste Management Plan; and B. The County prepared a Comprehensive Solid and Hazardous Waste Management Plan (the “Comprehensive Plan”) for the County and cities and towns of the County in 1990, 2002, 2013, and 2021, with active involvement of the cities and towns within the County; and C. Providing the most effective and efficient system for managing solid waste generated in Snohomish County, including its cities and towns, requires use of the solid waste disposal system established by the County and the Comprehensive Plan to the fullest extent possible; AGREEMENT NOW, THEREFORE, in consideration of the respective agreements set forth below and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the County and the City executing this Agreement agree as follows: 1.Previous Agreements. This Interlocal Agreement supersedes the previously executed Interlocal Agreement between Snohomish County and its cities and towns regarding Solid Waste Management entered into in 2003. Interlocal Agreement Regarding Solid Waste Management City of Arlington Page 2 of 8 2. Definitions. For the purposes of this Interlocal Agreement, the following definitions apply. See also Snohomish County Codes (especially Chapters 7.35 and 7.41) and State law (especially WAC 173-350-100) for additional definitions related to Solid Waste Management: 2.1. “City”/”Town” means a City or Town in Snohomish County, Washington that is a signatory to this Interlocal Agreement. 2.2. “Combustion” means the process of burning something. 2.3. “Comprehensive Plan” means the Snohomish County Comprehensive Solid and Hazardous Waste Management Plan authorized and directed by chapter RCW 70A.205 and issued in 2021 and as amended from time to time. 2.4. “County” means Snohomish County, Washington. 2.5. “Household Hazardous Waste” or “HHW” means wastes that would be classified as hazardous due to their nature or characteristics, except that the wastes are generated by households. 2.6. “Incinerate, Incinerated, or Incineration” means the controlled combustion of solid waste that yields satisfactory non-putrescible residues and air effluents. 2.7. “Person” means an individual, firm, association, partnership, political subdivision, government agency, municipality, industry, public or private corporation, or any other entity whatsoever. 2.8. “Recyclable materials” means those solid wastes that are separated from other wastes for anaerobic digestion, composting, recycling or reuse, including but not limited to papers, metals, glass, plastics, aggregates, fabrics, yard debris, food waste, manures, wood waste and other materials that are identified as recyclable material in the Comprehensive Plan, and are recycled. Wood waste processed as hog fuel and used for energy recovery shall be considered a recyclable material for purposes of this Interlocal Agreement. 2.9. “Recycling" or “Recycle” or “Recycled” means transforming or remanufacturing waste materials into usable and marketable materials for use other than landfill disposal, alternative daily (landfill) cover, industrial waste stabilizer, combustion, or incineration. 2.10. “Solid Waste” means all putrescible and non-putrescible wastes, whether in solid or in liquid form, except liquid-carried industrial wastes and sewage, and including garbage, rubbish, ashes, industrial wastes, swill, construction, demolition and land-clearing Interlocal Agreement Regarding Solid Waste Management City of Arlington Page 3 of 8 wastes, abandoned vehicles or parts thereof, discarded home and industrial appliances, manure, digested sludge, vegetable or animal solid and semi-solid wastes, dead animals, and other discarded solid and semi-solid materials. Municipal solid waste (MSW), a subset of solid waste, refers to wastes normally collected from residential households, commercial businesses, and containers. 2.11. “Solid Waste Handling” means the management, storage, collection, transportation, treatment, utilization, processing, and final disposal of Solid Waste. 2.12. “System” means all facilities for Solid Waste Handling owned or operated, or contracted for, by the County, and all administrative activities related thereto. 3. Responsibilities for Waste Disposal and System. For the duration of this Interlocal Agreement, the County shall have the following responsibilities: 3.1. The County shall continue to provide for the efficient disposal of all Solid Waste, not otherwise restricted by chapters 7.35 and 7.41 SCC, generated within unincorporated areas of the County and within the City to the extent, in the manner, and by facilities as described in the Comprehensive Plan. The County shall not be responsible for disposal of, nor claim that this Interlocal Agreement extends to, Solid Waste that has been recycled in compliance with the Comprehensive Plan. 3.2. The County shall provide for the disposal of household hazardous wastes generated by residential households located in jurisdictions party to this Interlocal Agreement at the System’s existing Moderate Risk Waste Facility, or in another reasonable and similarly convenient manner. 3.3. The County shall continue to operate the System in a financially prudent manner, minimize fee increases, and use System revenues only for System purposes. 3.4. The System shall continue to be comprehensive, and include educational and other programs, as defined by the Comprehensive Plan. 4. Comprehensive Plan. For the duration of this Interlocal Agreement, the City shall participate in the Comprehensive Plan, provided that the City shall have the right to prepare or maintain its own Comprehensive Interlocal Agreement Regarding Solid Waste Management City of Arlington Page 4 of 8 Solid and Hazardous Waste Management Plan authorized and directed by chapter RCW 70A.205 and to assess a solid waste fee on its own residents. For the duration of this Interlocal Agreement the City, in conformity with RCW 70A.205.040 (4), as may be amended from time to time, authorizes the County to include in the Comprehensive Plan provisions for the management of Solid Waste generated within its corporate limits. 5. City Designation of County System for Solid Waste Disposal. The City shall, to the extent permitted by law, designate the County System for the disposal of all Solid Waste generated within the corporate limits of that City, and within the scope of the Plan, and authorize the County to designate a disposal site or sites for the disposal of such Solid Waste except for recyclable and other materials removed from Solid Waste for recycling in conformity with the Comprehensive Plan. The designation of the County in this section shall not reduce or otherwise affect the City’s control over Solid Waste collection as permitted by applicable state law. 6. Enforcement. In unincorporated Snohomish County, the County shall be responsible for enforcement of laws and regulations requiring persons to dispose of Solid Waste at sites designated by the County as required by chapter 7.35 SCC. The City shall by ordinance require persons to dispose of Solid Waste at the same sites designated by the County for disposal of Solid Waste. Thereafter, in incorporated Snohomish County, the City shall be responsible for enforcement of its laws and regulations requiring persons to dispose of Solid Waste at those sites designated by the County. The County (taking the lead role) with the City will provide outreach both within unincorporated and incorporated Snohomish County to educate the public about the requirements of Solid Waste disposal at sites designated by the County. Interlocal Agreement Regarding Solid Waste Management City of Arlington Page 5 of 8 7. Indemnifications. 7.1. The County shall indemnify and hold harmless and defend the City against any and all claims by third parties arising out of the County’s operation of the System and performance under this Interlocal Agreement, and shall have the right to settle those claims by third parties, recognizing that all costs incurred by the County thereby are System costs which must be satisfied from disposal rates. In providing a defense for the City, the County shall exercise good faith in that defense or settlement so as to protect the City's interests. The County’s agreement to indemnify the City for any and all claims arising out of the County's operation of the System extends to all claims caused by the actions of officers or agents of the County, including but not limited to actions which constitute misfeasance, or intentional misconduct or wrongdoing, even if the cost of such claims is held by a court of competent jurisdiction to not be a proper cost to the System. For the purpose of this paragraph, “claims of arising out of the County’s operations” shall include claims arising out of the ownership, control or maintenance of the System, but shall not include claims arising out of the collection of Solid Waste within the City prior to its delivery to a disposal site designated by the County or other activities under control of the City. 7.2. If the County acts to defend the City against a claim, the City shall cooperate with the County. 7.3. The County shall defend the City against any challenge, whether judicially or before an administrative hearings panel, to the Comprehensive Plan elements adopted pursuant to this Interlocal Agreement. 7.4. The City agrees to indemnify, protect, defend and hold harmless the County from and against all claims, demands and causes of action of any kind or character, including any cost of defense and attorney’s fees, arising out of any actions, errors or omissions of the City in performing this Interlocal Agreement except for those arising out of the sole negligence of the County or otherwise listed in this Section 7. 7.5. Waiver of Immunity Under Industrial Insurance Act. The indemnification provisions of Sections 7.1-7.4 above are specifically intended to constitute a waiver of each party’s immunity under Washington’s Industrial Insurance Act, Title 51 RCW, as respects the other party only, and only to the extent necessary to provide the indemnified party with Interlocal Agreement Regarding Solid Waste Management City of Arlington Page 6 of 8 a full and complete indemnity of claims made by the indemnitor’s employees. The parties acknowledge that these provisions were specifically negotiated and agreed upon by them. 7.6. For the purposes of this section, reference to the City and to the County shall be deemed to include the officers, agents, and employees of any such party, acting within the scope of their authority. 7.7. Survival. The provisions of this Section 7 shall survive the expiration or earlier termination of this Interlocal Agreement. 8. Duration. This Interlocal Agreement shall continue to be in full force and effect until December 31, 2038, unless terminated as described in the following paragraph. 9. Revision, Amendment, Supplementation or Termination. This Interlocal Agreement shall be reviewed by the parties in conjunction with any review of the Comprehensive Plan. The terms of the Interlocal Agreement may be revised, amended, or supplemented, or the Interlocal Agreement as a whole may be terminated before expiration provided in paragraph 8 only upon the written agreement of the parties to this Interlocal Agreement executed with the same formalities as the original. No revision, amendment, supplementation, or termination shall be adopted or put into effect if it impairs any contractual obligation of the County. 10. Miscellaneous. 10.1. No waiver by any party of any term or condition of this Interlocal Agreement shall be deemed or construed to constitute a waiver of any other term or condition or of any subsequent breach whether of the same or of a different provision of this Interlocal Agreement. 10.2. This Interlocal Agreement is not entered into with the intent that it shall benefit a city or town not signing this Interlocal Agreement, and no other person or entity shall be entitled to be treated as a third party beneficiary of this Interlocal Agreement. Interlocal Agreement Regarding Solid Waste Management City of Arlington Page 7 of 8 11. Contract Administrator. Pursuant to RCW 39.34.030(4)(a), the parties hereby appoint the County as the Contract Administrator who will be responsible for administering this Agreement, and the direction of the parties, and this Contract Administrator shall take such action as is necessary to ensure that this Agreement is implemented in accordance with its terms. 12. No Separate Entity. This Agreement does not create a separate legal or administrative entity, and consequently is being administered in accordance with RCW 39.34.030(4). 13. Severability. If any term or condition of this Interlocal Agreement or the application thereof to any person(s) or circumstances is held invalid, such invalidity shall not affect other terms, conditions, or applications which can be given effect with the invalid term, condition, or application. To this end, the terms and conditions of this Interlocal Agreement are declared severable. 14. Filing. As provided by RCW 39.34.040, this Agreement shall be filed with the Snohomish County Auditor, or, alternatively, posted on the official website of each party. 15. Authority. Each of the individuals signing this Interlocal Agreement on behalf of a party to this Interlocal Agreement, certifies that his or her signature has been authorized by appropriate action by ordinance, resolution, or otherwise pursuant to the law of that party to bind the party to the terms of this Interlocal Agreement. [Remainder of this page intentionally left blank.] Interlocal Agreement Regarding Solid Waste Management City of Arlington Page 8 of 8 IN WITNESS WHEREOF, this Interlocal Agreement has been executed by the parties shown below as of the date of the signature of the last party to sign. COUNTY CITY Snohomish County, a political subdivision City of Arlington, a Washington of the State of Washington municipal corporation By:________________________________ By:________________________________ Title: Executive Director Title:_______________________________ Approved as to Form: Approved as to Form: __/s/ Sean Reay 07/10/2023_________ ______________________________ City Attorney Deputy Prosecuting Attorney City of Arlington Council Agenda Bill CA #4 Attachment July 31, 2023 Sole Source Resolution for Wastewater Treatment Plant Pump Purchase and Repair Draft Sole Source Resolution and Manufacturer Authorized Distributor for Washington State letter Public Works; Jim Kelly, Director 360-403-3505 EXPENDITURES REQUESTED: $40,000 estimate (includes tax) BUDGET CATEGORY: Wastewater Operating Fund (Repair/Maintenance) BUDGETED AMOUNT: $125,000 - Repair/Maintenance budget 2023 $135,000 – Repair/Maintenance budget 2024 LEGAL REVIEW: DESCRIPTION: Sole source authorization for procurement and servicing Flygt Pumps and products. Based on engineering analysis and experience, the City of Arlington has elected to use Flygt Pumps and products in its wastewater system operations. Flygt Pumps and products are only sold and serviced by an authorized Flygt Products distribution and service facility. Whitney Equipment Company, Inc. in Woodinville, WA is the sole authorized Flygt Products distribution and service facility for Washington state. Staff is requesting Council authorize a sole source resolution for Whitney Equipment Company, Inc for procurement and servicing of Flygt Pumps and products. ALTERNATIVES: Remand to staff for further information. and service facility in Washington state and approve a Sole Source Resolution allowing the City to contract for the procurement and servicing of Flygt Pumps and products and authorize the Mayor to sign the resolution. RESOLUTION 20182023-XXX 1 RESOLUTION NO. 20182023-XXX A RESOLUTION OF THE CITY OF ARLINGTON TO WAIVE BIDDING REQUIREMENTS FOR THE PURCHASE AND OR SERVICING REPLACEMENT OF FLYGHT PUMPS AND PRODUCTSTHE MBR RETURN ACTIVATED SLUDGE (RAS) PUMPS FOR USE BY THE CITY OF ARLINGTON UTILITYWASTEWATER DEPARTMENT WHEREAS, the City of Arlington Wastewater Department treats wastewater for all of its customers; and WHEREAS, to maintain the consistency of parts, ensure the warranty of the RAS Pump System at the Wastewater Treatment Plant, and avoid the cost associated with repairs to the system that may occur using non genuine original equipment manufacturer (Flygt) replacement parts, a supplier of Flygt RAS Pumps is required; and WHEREAS, Whitney Equipment Company has provided the City of Arlington with its existing RAS Pumps, and Whitney Equipment Company Inc. is the sole source representative authorized to sell Flygt brand pumps; and WHEREAS, RCW 35.23.352(9) permits the waiving of bidding requirements for the purchase of materials which are clearly and legitimately limited to a single source of supply or services which are subject to special market conditions; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arlington, as follows: Section 1: The City Council of the City of Arlington finds that replacing RAS Pumps with Flygt brand pumps clearly limits the City of Arlington to a single source of supply, justifying the waiver of competitive bidding requirements. Section 2: The City Council of the City of Arlington hereby waives the bidding requirements for the purchase, replacement, and or repair of RAS Pumps for use by the City of Arlington Wastewater Department and authorizes sole source purchasing from Whitney Equipment Company, Inc. Section 3: This resolution will be effective for three (3) years from the date of adoption. APPROVED by the Mayor and City Council of the City of Arlington this _____day of JuneJuly, 20182023. CITY OF ARLINGTON ___________________________________ Barbara Tolbert, Mayor RESOLUTION 20182023-XXX 2 ATTEST: _____________________________ Kristin BanfieldWendy Van Der Meersche, City Clerk APPROVED AS TO FORM: _____________________________ Steven J. Peiffle, City Attorney Grant StaybergChannel Account Manager Water Utilities 4109 NE 107th St. -0601 .com Subject: Flygt Sole-Source Authorized Distributor To Whom It May Concern This letter is to inform you that Whitney Equipment Company, Inc. Whitney Equipment Company, Inc. 16120 Woodinville-Redmond Rd NE #3 2501 SE Columbia Way, Suite 300 Woodinville, WA 98072 Vancouver, WA 98661 (425) 486-9499 (360) 694-9175 is the exclusive factory authorized distributor of Flygt pumps and accessories for the Municipal and Industrial markets for the entire State of Washington and the Industrial market for the entire State of Oregon. WECI also has Municipal and Industrial markets for the following counties in northern Idaho; Benewah, Bonner, Boundary, Clearwater, Kootenai, Latah, Lewis, New Perce, and Shoshone. WECI is the sole factory authorized service center for the above-mentioned territory employing factory trained mechanics that are capable of servicing all Flygt products manufactured by Xylem Water Solution. We are confident Whitney Equipment Company will be able to provide expert advice in a professional manner for any of your pumping needs. Thank you for your interest in Flygt Products and Services. Please call if we can be of any further help. Sincerely, Grant Stayberg Grant Stayberg Channel Account Manager City of Arlington Council Agenda Bill CA #5 Attachment July 31, 2023 Resolution Revising Financial Policies Financial Policies Update 2023 – Executive Summary A Resolution Replacing Resolution No. 2021-026 and Adopting Revised Financial Policies for the City Financial Policies Document – redlined version Financial Policies Document – clean version Finance; Kristin Garcia, Director 360-403-3431 EXPENDITURES REQUESTED: N/A BUDGET CATEGORY: N/A BUDGETED AMOUNT: N/A LEGAL REVIEW: DESCRIPTION: regulations and industry standards. A full description of the updates is attached in the Financial Policies – Executive Summary document. The city last updated its financial policies June 2021. ALTERNATIVES: Do not update the financial policies. Remand back to staff for additional edits. policies for the city and authorize the Mayor to sign the resolution. FINANCIAL POLICY UPDATE 2023 - EXECUTIVE SUMMARY RESERVE POLICIES – PAGE 5 • Removed language that the city’s intent to meet it’s minimum reserve goals by 2023 as the minimum goals have been met. • Added capital facili�es reserve based available construc�on sales tax revenue and on the outcome of the capital facili�es needs assessment. Currently $470,000 per year is planned as the contribu�on level. EXPENDITURES POLICIES – PAGE 8 • Clariﬁed role of the ﬁnance director to establish expenditure guidelines and opera�ng procedures to implement policy. This is a current prac�ce but it should be formally documented in policy to provide accountability. Examples; invoice review process, claims approval process, voiding checks, processing ACH payments.....etc. TRAVEL AND TRAINING POLICY - PAGE 9 AND 10 • This policy is not new, it is being moved from the employee handbook to the ﬁnancial policy as it relates more to expenditures and budget than it does to employee pay/beneﬁt prac�ces. • Minimal changes to reﬂect current prac�ces are highlighted in yellow on page 9 and include; allowing the city administrator and elected oﬃcials to use either actual receipts or per diem for travel and removing the requirement that a travel/travel form be required when atending a webinar or other class that does not require an overnight stay. PROCUREMENT CARD EXPENSES - PAGE 11 AND 12 • This policy is not new, it is being moved from the employee handbook to the ﬁnancial policy as it relates more to expenditures and budget than it does to employee pay/beneﬁt prac�ces. • No changes. CAPITAL ASSETS – PAGE 15 -18 • Clariﬁed examples of what a small and atrac�ve asset is. • Added language on how small and atrac�ve assets will be tracked. • Added $250 dollar threshold for tracking small and atrac�ve assets. • Clariﬁed that a capital outlay form is required for purchases $7,500 or more, this is to align with current prac�ce. • Removed language requiring departments to inventory IT related equipment, the IT department tracks and inventories those assets and they are included in the ﬁnance department small and atrac�ve database. PURCHASING – PAGE 18 - 38 • Changed conﬂict of interest language to reﬂect exact verbiage in the Code of Federal Regula�ons. This was an audit recommenda�on from last year. • Moved lease language from policy statement sec�on to Page 32 – Mayor’s Leashing Authority. • Added deﬁni�on for “contracted employee” which is typically a former employee who performs work on a limited basis to assist with a project or employment transi�ons. • Added language as per RCW 42.24.080(1) regarding advance payments and that a contractual obliga�on is required for any prepayment of goods or services. • Clariﬁed the signature thresholds for contract change orders and amendments. Thresholds didn’t change, just clariﬁed authority ranges between Mayor and City Administrator. • Added language requiring department directors, on an annual basis and as needed, to provide a writen list of signature authority delega�on in the event of their absence. • Increased bid threshold for purchases of materials, supplies and equipment from $30,000 to $50,000 to create more eﬃciency in our processes. Now that Arlington’s popula�on is more than 20,000, state law allows for more ﬂexibility in se�ng bid limits. • Added language per RCW 39.04.190 that allows use of the MRSC roster for procurement. This is not new but something currently available and should be included in our policy document. • Removed language regarding formal bid openings for purchases of materials, supplies and equipment, this is not a consistent prac�ce for this type of purchase. Changed language to read “bid due date” instead of “bid opening”. • Added a sec�on to deﬁne procurement thresholds for contracted employees. • Removed Sole Source Procurement and Interlocal Joint Purchasing Agreements sec�ons as this was duplicate language. These provisions are bid excep�ons and included on page 23. • Added language regarding leases with an op�on to purchase – these are subject to procurement requirements and will follow procurement processes as per state law and city policy according to the type of item being purchased. • Clariﬁed requirements in the contract authoriza�on summary pages on when contracts are required, veriﬁca�on of suspension and debarment and increased formal bid thresholds from $30,000 - $50,000 for materials, supplies and equipment. RESOLUTION NO. 2023-xxx RESOLUTION NO. 2023—xxx A RESOLUTION OF THE CITY OF ARLINGTON REPLACING RESOLUTION NO. 2021-026 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 July 31, 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 31st day of July, 2023. CITY OF ARLINGTON ___________________________ Barbara Tolbert, Mayor ATTEST: _________________________________ Wendy Van Der Meersche, City Clerk APPROVED AS TO FORM: __________________________________ Steven J. Peiffle City Attorney 1 CITY OF ARLINGTON FINANCIAL POLICIES Adopted by City Council 7/31/2023 2 3 Table of Contents Purpose & Objectives .............................................................................................................................. 4 Reserve Policies ........................................................................................................................................ 5 Revenue Policies ....................................................................................................................................... 6 Expenditure Policies ............................................................................................................................... 8 Travel and Training Policy…………………………………………………………………………………...……..9 Procurement Card Expenses.............................................................................................................12 Budget and Operating Policies ......................................................................................................... 13 Capital Assets Policies and Procedures ......................................................................................... 15 Purchasing Policies and Procedures .............................................................................................. 18 Cost Allocation and Allocated Costs ................................................................................................ 39 Debt Management Policy .................................................................................................................... 41 Investment Policy .................................................................................................................................. 43 Glossary .................................................................................................................................................... 47 4 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 public 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. 5 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 t he 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 ten and sixteen percent (10% - 16%) of the total General Fund budgeted taxes and license & permit revenues. 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. The city will maintain the general fund’s ending fund balance equal to two (2) months of operating expenses. Use of any required reserves or surplus funds will be approved by council through the budget process. 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. D. The City will maintain a Capital Facilities Reserve Fund that will receive annual contributions from available construction sales tax revenues in the General Fund. Annual contributions will be determined by the city’s most current capital facilities needs assessment. E. 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. 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 the minimum standard within a 3 year period. 6 G. 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 or 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. 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 7 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. 8 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 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. C. The finance director is responsible for oversight of all budget expenditures and will establish guidelines and operating procedures to ensure expenditures are adequately supported, are for a public purpose and follow local, state and federal laws. D. The finance director is authorized to make unilateral changes within line item expenditures as long as the changes are within the overall budget. E. 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. F. All expenditures must be related to some public purpose, meet all legal requirements and are reasonable in the amount and nature. G. 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. H. 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. I. All compensation planning and collective bargaining will focus on the total cost of compensation, which includes direct salary, health care benefits, pension 9 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. Travel and Training Policy: This policy is intended to cover the reasonable costs of meals, lodging and other incidentals incurred by employees, elected or appointed officials for business purposes. A. General a. The City shall use the GSA published per diem rate for meals, incidental expenses and lodging, except as otherwise noted. b. If using per diem for meals, receipts are not required, however a meeting agenda shall be used to determine if the business event provides any meals. c. Any meals not using per diem must include detailed receipts, agenda noting business purpose of the meeting and a list of attendees. d. Incidental expenses are included in per diem rates and include items such as; fees and tips given to porters, baggage carriers, hotel and restaurant staff and others for personal services performed. These are not miscellaneous and will not be reimbursed separately. e. Employees may be required to reimburse the City for any disallowed or undocumented charges. f. Any misuse of this policy is grounds for disciplinary action, up to and including termination of employment. g. Any time a meal is provided or a gift is presented, it must be occasional, not routine and be reasonable in cost or the IRS could consider the item a taxable fringe benefit and may require a deduction of appropriate taxes from the individual’s pay. B. Meals a. All city employees on travel status (overnight travel) shall be entitled to per diem rates as stated above. b. The city administrator and elected officials have the option to use actual receipts or per diem rates while in travel status. c. Per diem rates include taxes and gratuities. d. Claims for meals will only be paid for overnight stays. Day classes and seminars are not subject to meal reimbursement. e. The Travel Training Per Diem Request Form must be submitted to the finance department two (2) weeks prior to when the per diem check is needed. C. Lodging a. All city employees and elected officials on travel status shall be entitled to lodging expenses as stated above. b. All lodging rates are exclusive of taxes. 10 c. Expenses will be allowed for lodging necessary and appropriate to the purpose of the trip. d. Lodging arrangements shall be made at the hotel where the conference is held, if at all possible, however if significant savings can be made by staying at a lower cost facility nearby, the lower cost accommodation should be considered. e. If the conference hotel rate exceeds the GSA rate, the exception will allowed with department head approval. f. Reservations must be made in advance using the city p-card. g. Lodging receipts and conference/meeting agenda are required to be submitted to the finance department upon return to work. D. Travel Time a. Employees traveling on City of Arlington business are representatives of the City of Arlington and are expected to maintain a high level of professionalism and follow all of City of Arlington’s policies and rules. b. Travel time outside an employee’s normal working hours is not compensable unless the employee is actually driving. Normal working hours apply to travel time even on non-working days (no overtime). c. Travel time as a passenger on an airplane, train, boat, bus or automobile outside normal work hours or on non-working days is not compensable. d. Travel time during normal work hours is compensable. e. Exempt employees who go out of town for city business and travel outside their normal work hours are not compensable. This applies to both drivers and passengers. F. Training a. Each department head is authorized to approve training expenses for attendance at webinars, schools, workshops, association meetings, conferences or other professional meetings within their approved department budget. b. Training is intended for the purpose of a direct benefit to the City and is used to enhance professional qualifications of an employee and/or to meet local/state/federal mandates. c. A Travel Training Request Form is only needed if the training requires travel. If travel is necessary for the conduct of the training, policies related to meals, lodging, mileage and travel time shall apply. d. In-house training sessions shall require the approval of the city administrator or designee. G. Events/Celebrations a. Special Events/Celebrations – authorization for food and beverages shall be subject to the following and approved by the city administrator or designee; i. Events and celebrations fulfill a primary objective of disseminating and exchanging information which benefits both the City as well as the public. ii. Events such as open houses, City anniversary celebrations, hosting of 11 delegations from other cities, sister cities, state/federal governments. iii. Retirement Celebrations are authorized in cases where the employee has worked at least twenty (20) years for the City as a full time employee. Public funds may also be expended when an employee has thirty (30) or more years of government service with at least the last four (4) years at the City. iv. Awards and Recognitions - the annual employee recognition award must not exceed the non-taxable limit set by the Internal Revenue Service. Such awards may include; non-cash prizes, pins, certificates, plaques and other like items. Expenses related to a recognition or award must have criteria defining the eligibility for the award. v. Events held in recognition of recent promotions, certifications or recruit class graduations. b. Retreats/Meetings – authorization for food and beverages shall be subject to the following and approved by the city administrator or designee; i. Workshops or other meetings while conducting formal City business. ii. Department retreats should be limited to one per year and consideration should be given to utilizing existing City facilities. iii. Breakfast/Lunch/Dinner Meetings should be limited to instances where discussion cannot be conducted during normal business hours. iv. Interviewers and staff involved in day long interviews. v. Other situations not already identified shall be authorized by the city administrator or designee. H. Mileage/Vehicle Use a. City vehicles should be used for all out of town trips whenever possible. b. If no City vehicle is available, an employees use of a private vehicle will be reimbursed at the current IRS rate. c. Transportation via plane, train, taxi or ferry, to a meeting or conference for the conduct of City business, is authorized. d. An employee is responsible for their own insurance coverage. e. If requesting mileage reimbursement, an Expense Reimbursement Form must be submitted to the finance department along with supporting documentation upon return to work. f. The cost of a commercial vehicle rental will be handled on an exemption basis and must be approved by the city administrator. I. Expenses Not Authorized a. Regularly scheduled staff meetings – food and beverages for the sole purpose of providing refreshments during staff meetings is not authorized. b. Birthday celebrations are not an appropriate use of public funds. If the work group wishes to celebrate the birthday of a co-worker, supervisor or manager, the cost shall be incurred by the group, not the City. 12 Procurement Card Expenses: The City will issue employees Procurement Cards (P-cards) for the purpose of purchasing goods and services for City business. A. General a. Procurement cards will be issued by the finance department. b. Procurement cards are issued to the employee but remain the property of the City. c. All full time employees will receive a procurement card with a standard limit of $2,000. d. Cardholders will be required to sign an agreement which outlines their responsibilities prior to the card being issued. Cardholders are responsible for all activity on their card. e. Requests for changes in credit limits or changes in restrictions must be made in writing by the department head and approved by the city administrator or finance director. f. Cards are to be used solely for City of Arlington business, no personal expenses are to be charged on the card for any reason. Any employee who willfully makes non-city charges on the card shall be subject to disciplinary action, up to and including termination. g. Unauthorized charges or charges not properly identified, shall be paid by the employee. These charges are considered liens against any amount owed to the employee and may be withheld by the City from any funds owed to the employee up to the amount of the disallowed charges (RCW 42.24.114(3)). h. If an employee leaves employment, it is the department head’s responsibility to retrieve the card from the employee and notify payroll, in writing, of the employee’s separation from employment. Payroll will instruct accounts payable to terminate the card. i. If a card is lost or stolen, the finance department must be notified immediately. B. Receipts a. Employees who make a purchase on their card must submit approved receipts within five (5) business days of the date of purchase. Credits and returns shall be processed in the same manner as purchases. b. In the event of a lost receipt or the vendor is unable to provide one, an Affidavit of Non Documentation form must be completed by the cardholder and submitted to the department head for approval. Repeated and frequent use of this form as substitute documentation may result in revocation of the employee’s card. 13 C. Unauthorized Uses a. Purchase cards shall not be used for any of the following purposes; i. Non-city charges, personal uses ii. Cash advances iii. Meals for travel in place of per diem, except as authorized above iv. Alcohol v. Payments for professional or legal services vi. Payments for services subject to prevailing wage vii. Recurring payments (auto payments) viii. Gifts, donations or other contributions to individuals or organizations ix. Medical services x. Moving expenses xi. College tuition payments 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. 14 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. 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 15 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 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 System. 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. 16 c. “Inventory” – The process of physically confirming the existence and location of capital assets. d. “Small and Attractive Assets” - All assets with a cost between $250 and $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. Information Technology Equipment such as; 1. Optical Devices, Binoculars, Telescopes, Infrared Viewers, and Range finders 2. Cameras and Photographic Projection Equipment 3. Microcomputer Systems, Laptop and Notebook Computers 4. Other data processing Accessory Equipment and Components 5. Office Equipment 6. Stereos, Radios, Television Sets, Tape Recorders, DVD players, Video Cameras and cell phones ii. Landscaping and Maintenance Equipment such as; 1. Mowers, hand and chain saws, power tools 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 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. For all vehicles, equipment and unbudgeted capital assets, a Capital Outlay Form and Fixed Asset Form must be submitted to the finance department. Unbudgeted purchases require council approval prior to purchase or awarding of the contract. Capital assets will be assigned a capital asset number by the finance department. 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. 17 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. A Fixed Asset Form must be completed and submitted to the finance department. c. Small and attractive assets will be tagged with a unique identifying asset number. d. Annually each department will conduct an inventory verified by the finance department.. e. Small and attractive assets may not be transferred, traded, sold, auctioned, gifted, surplused, or discarded without written notice to and authorization from the finance department or city administrator. 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 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 18 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 and portable items such as desktop computers, laptop computers with docking stations, tablets, servers, printers and network equipment. 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 19 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. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the non-Federal entity may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. Violations may result in disciplinary action, including and up to termination of employment. 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 Council, based on allowable signing authority. All purchases made by the City shall ultimately be approved by the City Council through the claims 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 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 F(e). 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. 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. 20 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. c. “Contracted Employee” is an independent worker, generally a former city employee, hired for a limited period of time, to work on special projects or to assist with a transition due to employee absences from extended illness, retirements or other separations of employment. d. "Formal competitive bid" is the process of advertising and receiving written bids from perspective vendors. The selection of the vendor is primarily based on the lowest cost from a responsible vendor. e. "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. f. "Inter-local agreements" are the exercise of governmental powers in a joint or cooperative undertaking with another public agency. g. "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. h. “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. i. “Personal Services” are services that involve technical expertise provided by a 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. j. "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. k. "Unit Price contract" means a contract that is awarded with general provisions for 21 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. l. “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. m. “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. n. "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. o. “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 purposes of this policy, the term “public work” may include contracts for maintenance of City facilities or real property (i.e. janitorial services). p. "Request for proposals (RFP)" means a process that requests interested firms to 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. q. "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. r. "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. s. “Small Works Roster Manual for Local Governments” is a manual prepared by the 22 Municipal Research & Service Center of Washington (MRSC) that contains state laws and regulations regarding small works contracting. t. “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. u. “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), the 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 and city clerk to ensure MRSC rosters and vendor lists are maintained, paid for and advertised as may be required by state law. d. RCW 42.24.080(1) allows for advance payments pursuant to a contractual obligation. Advance payment for goods or services will not be authorized without a fully executed contract. e. Amendments and Change Orders. i. Amendments or change orders to contracts, including inter-local agreements, may be approved: 1. By the department director if the amendment(s) or change order(s) combined are less than 5% over the original contract amount. 2. By the city administrator if the excess is between 5% and up to 10% over the original contract amount. 3. By the Mayor if the excess is between 10% and 15% over the original contract amount up to $200,000. 4. By City Council if the excess is more than 15% over the original contract amount or in excess of $200,000. ii. Contract amendments that are strictly a change in contract expiration date may be administratively approved by the department director. f. 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. Department directors shall provide a written list of designees to the Finance Department on an annual basis or as 23 necessary due to a prolonged absence by the director. 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 Requirements (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, supplies 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 in obtaining bids. Originating agency’s bid process shall be vetted to assure compliance with all applicable laws. 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 24 public inspection. 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. 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. 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 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. ix. RCW 39.04.280 allows waiving of competitive bidding for the purchase of insurance and bonds. c. Informal Quotes - Materials, Supplies or Equipment over $7,500 up to $50,000. 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 25 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. vi. An MRSC roster may be used for purchases between $7,500 and up to $15,000 provided that the uniform procedure as set forth in RCW 39.04.190 is followed. d. Competitive Bid – Materials, Supplies, or Equipment over $50,000 i. General. Unless otherwise specifically approved by the City Council, all contracts relating to the purchase of materials, equipment, or supplies 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, not less than 13 calendar days prior to the date set forth therein for the bid due date unless for good cause shown, the City Council authorizes a different period of time. The public notice shall state the date and time of the bid due date. Bids not received by the date and time stated will not be accepted or considered. iv. 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. v. 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 26 criteria set forth in the invitation for bids. The City may reject all bids at its discretion. vi. All vehicles, equipment and unbudgeted purchases of over $7,500 (including tax) will have a completed and approved Capital Outlay Form and Fixed Asset Form submitted to the finance department prior to making the purchase. vii. Lowest Responsible Bidder. The following factors, in addition to price, may be taken into account by the City in determining the lowest responsible bidder; 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. xv. 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. xvi. 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. . 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. 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 per year. c. Purchasing Limitations. The Mayor may authorize the purchase and execution 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. 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 27 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 3 written quotes. All purchases in excess of $5,000 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. 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. f. Roster List. The City of Arlington shall contract with the Municipal Research and 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 $350,000 and under). 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 $250,000 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; 28 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. v. At least once every year, the city clerk or his/her designee shall provide a list of the contracts awarded under this process. 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. 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. 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. 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. 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. 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 29 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. 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 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 Price Service Contracts. Unit Price service contracts will be procured with the processes identified in subsection f (purchased services) below. Individual task orders of unit price service contracts shall not exceed $50,000 per year. 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 30 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 architectural, landscape architectural, and engineering services. 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 for purchases greater than $5,000 e. Employee Contracts. i. The city may enter into such contracts without formal procurement requirements for contracts less than nine months and less than $50,000. ii. Any contracts over nine months and more than $50,000 must follow procurement requirements for personal and professional services. H. Purchased Services over $7,500 up to $75,000 – 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 31 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. b. Purchased Services over $75,000 – Competitive Bid. i. General. Unless otherwise specifically approved by the City Council, all 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 the bid due date. Bids not received by the date and time stated will not be accepted or considered. iv. 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. v. 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. vi. 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: vii. Any preferences provided by law to local products and vendors; viii. The ability, capacity, and skill of the vendor to perform the contract; ix. The character, integrity, reputation, judgment, experience, and efficiency of 32 the vendor; x. Whether the vendor can perform the contract within the time specified; xi. The quality of performance of previous contracts or services; xii. The previous and existing compliance by the vendor with laws relating to the contract; xiii. Such other information as may be secured having a bearing on the decision to award the contract. I. 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, without an option to purchase, 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. Leases that exceed these limits shall be submitted to City Council for approval. ii. Leases that do not have the option to purchase do not require a call for bids. iii. Leases with an option to purchase require formal bidding procedures and council approval as set forth in the Contract Authorization Summary depending on the type of property being acquired. iv. In determining procurement or signature thresholds, the aggregate of the lease payments shall be considered the total purchase price (principal, interest and applicable taxes). 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. 33 J. 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. 34 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. Bid thresholds are inclusive of all taxes and fees. CCCONTRACT TYPE -BID THRESHOLDS PROCESS SIGNATURE AUTHORITY OTHER Public Works-single trade or craft Under $75,500 For projects over $2,500, requires a minimum of 3 written quotes Single and/or verbal quotes allowed for less than $2,500. Up to $50,000 - Department Director Up to $75,500 - City Administrator Prevailing wage Verification of Suspension/Debarment Performance bond, unless using limited small works process Award letter Contract Required > $5,000 Public Works- single trade of craft $75,501 up to $350,000 Federal threshold is $150,000 for competitive bids Small works roster or competitive bids. Up to $75,500 – City Administrator Up to $150,000 – Mayor Over $150,000 - Council Prevailing wage Verification of Suspension/Debarment Insurance Performance Bond, unless using exception for projects less than $150,000 Bid Bond, unless using exception for projects less than $150,000 Contract Required for >$5,000 35 CONTRACT TYPE BID THRESHOLDS PROCESS SIGNATURE AUTHORITY OTHER Public Works-multi trade or craft Under $116,155 Requires a minimum of 3 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 Required> $5,000 Public Works-multi trade or craft $116,156 up to $350,000 Federal threshold is $150,000 for competitive bids Small works roster or competitive bids Up to $150,000– Mayor Over $150,000– 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 Required Public Works Over $350,000 Federal Threshold is $150,000 for competitive bids Competitive bids Council Prevailing wage Insurance Performance Bond Bid Bond Contract Required Materials, supplies, equipment* $7,500 up to $50,000 Requires a minimum of 3 written or verbal quotes. May use vendor list up to $15,000 per RCW 39.04.190 Up to $30,000 Department Director Between $30,000 - $50,000 City Administrator 36 CONTRACT TYPE BID THRESHOLDS PROCESS SIGNATURE AUTHORITY OTHER Materials, supplies, equipment* Over $50,000 Competitive Bid Up to $150,000 – Mayor Over $150,000 - Council Materials, supplies, equipment* No limit Government Bid Up to $30,000 – Department Director Up to $50,000 – City Administrator Up to $150,000 – Mayor over $150,000 - Council Purchased Services (delivery service, vehicle inspection, herbicide application, collection services) Under $75,000 Anything over $7,500 requires a minimum of 3 quotes Up to $30,000 Department Director Up to $50,000 - City Administrator Over $50,000 - Mayor Contract Required > $5,000 Purchased Services (delivery service, vehicle inspection, herbicide application, collection services) Over $75,000 Chosen from consultant roster Up to $150,000 – Mayor Over $150,000 - Council Contract Required 37 CONTRACT TYPE BID THRESHOLDS PROCESS SIGNATURE AUTHORITY OTHER Unit Price contracts(legal, human resources, design, development review services or those related to public work projects) Contract not to exceed $50,000 per year. Chosen from consultant roster or small works roster City Administrator Contracts may be awarded up to 3 years with a 1 year option to extend. Personal and Professional Services (meeting facilitation, planning, real estate brokers, legal or financial services Under $100,000 Chosen from consultant roster Up to 30,000 Department Director Up to $50,000 - City Administrator Up to $150,000 – Mayor Contract required >$5,000 Less than $5,000, scope of work required w/ invoice Personal and Professional Services (meeting facilitation, planning, real estate brokers, legal or financial services) Over $100,001 More than $100,001 formal RFP process Over $150,000 - Council Contract Required A&E Services Under $100,000 Less than $100,000 Chosen from consultant roster Up to $30,000 Department Director Up to$50,000 - City Administrator Up to$150,000 – Mayor Evaluate on performance and qualifications Negotiate contract after selection A&E Services Over $100,001 More than $100,000 formal RFQ process Over $150,000 - Council Publish RFQ Evaluate on performance and qualifications Negotiate contract after selection 38 CONTRACT TYPE BID THRESHOLDS PROCESS SIGNATURE AUTHORITY OTHER Employment Contracts None Less than 9 months and less than $50,000 City Administrator Contract Required Employment Contracts Chosen from consultant Roster More than 9 months and more than $50,000 Mayor up to $150,000 City Council over $150,000 Extensions or amendments to contract must follow guidelines as set forth in General Provisions, Section D(d)(i) *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. 39 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 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 40 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 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. 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 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. 41 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 42 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. 43 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 44 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. 45 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 46 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. 47 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. 48 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 amount 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. 49 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. 50 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. City of Arlington Council Agenda Bill NB #1 Attachment July 31, 2023 Amendment #1 to the RH2 Contract for the 520 Booster Pump Station Install Project Amendment #1 to RH2 contract and pressure zone map Public Works; Jim Kelly, Director 360-403-3505 EXPENDITURES REQUESTED: $232,401.00 BUDGET CATEGORY: Water Improvement Fund BUDGETED AMOUNT: $750,000 in 2023-2024 Budget LEGAL REVIEW: DESCRIPTION: Amendment #1 to RH2 contract for design of the 520 Booster Station Project. In 2021 the city entered into contract with RH2 for Hydraulic Analysis Engineering Report for a proposed booster pump station at the 520 Reservoir site (520 Booster Pump Station) and a new potable water reservoir serving the 640-pressure zone. The Engineering Report was Amendment 1 will include funds to cover the scope of work for the design phase. Initial Contract Amount $ 78,411.00 Amendment #1 $ 232,401.00 Revised Contract Amount $ 310,812.00 ALTERNATIVES: Remand to staff for further information. I move to approve Amendment No. 1 to RH2 contract for a design of the 520 Booster Pump Station and authorize the Mayor to sign the amendment. 1 11/14/2022 6:13:59 AM \\CORP.RH2.COM\DFS\PROJECTS\DATA\ARL\21-0233\00 CONTRACT\AMENDMENT 1 - 640 BPS DESIGN\AMND_NO. 1_SOW_ARL 640 BPS DESIGN AND SDB.DOCX EXHIBIT A Scope of Work Amendment No. 1 City of Arlington 640 Zone Booster Pump Station Design, Packaged Pump Station Pre-Bid, and Services During Bidding November 2022 Background The City of Arlington (City) serves a high growth area southeast of downtown through an intertie with Snohomish County Public Utility District No. 1 (SPUD) that provides water to an existing 710 Zone. The 710 Zone is connected to the 520 Zone by pressure reducing valves (PRVs). The 710 Zone has a maximum ground elevation of 550 feet. Hydraulic analysis performed under the original pre-design contract has confirmed the area can be supported with a 640 Zone hydraulic grade line and operational storage in the 640 to 625 foot elevation. Three potential reservoir sites were identified for future use. This Scope of Work captures services to be performed by RH2 Engineering, Inc., (RH2) to develop the first phase of project design and provide services during bidding for the new system. The first phase of this system is a booster pump station (BPS) that can supply the 640 zone as a closed zone in combination with the SPUD intertie. The City has decided to proceed with Alternative 1, a 710 gallon per minute (gpm) BPS with space to expand to 1,650 gpm providing maximum day demand (MDD) with existing fire flow demands to meet 1,500 gpm fire flow to the new Fire Station on McElroy Road. The SPUD intertie will provide fire flow initially. The City would like to pre-bid the pumps and control panel for the closed zone 710 gpm BPS with assistance from a packaged pump station manufacturer who designs and manufactures skid mounted pump systems. The building contractor for Phase 1 will install the pre-purchased skid mounted pump station inside the Clay altitude valve building adjacent to the 520 Reservoir. Phase 2 will include fire pumps for a firm capacity of 1,650 gpm to be designed in approximately five years. A subsequent 3rd phase to be completed in the future will include a reservoir to serve this zone, reducing the need for redundancy for the pump station and allowing pumping to be periodic as the reservoir provides a dampening in demand by holding water to supply peak demand peri ods and additional fire flow capacity as the area grows with commercial development. This includes an increased fire flow capacity of 3,000 gpm to commercial areas for a 2-hour duration in addition to an MDD of approximately 823 gpm. As part of Phase 1, a PRV station with isolation valves will be designed downstream of the SPUD intertie to only open when pressure in the zone is near 600 feet which indicates an extreme demand such as a fire event which will reduce pressure to below 600 feet. This will be designed as part of this Scope of Work. On an interim basis, water quality may require adjustment of this PRV to open at regular intervals to aid in mixing and reducing water age. City of Arlington Amendment No. 1 640 Zone Booster Pump Station Exhibit A Design and Services During Bidding Scope of Work 2 11/14/2022 6:13:59 AM \\CORP.RH2.COM\DFS\PROJECTS\DATA\ARL\21-0233\00 CONTRACT\AMENDMENT 1 - 640 BPS DESIGN\AMND_NO. 1_SOW_ARL 640 BPS DESIGN AND SDB.DOCX The intent of this BPS is to provide water service to this area on an interim basis (approximately 5 years) until the City is able to move forward with Phase 2 – adding larger fire flow pumps and Phase 3 – reservoir construction. The pump station will then be utilized to fill the reservoir on an open 640 Zone. Approach The work for this project will be accomplished via the following tasks: Task 1 – Project Management Task 2 – Develop 30-Percent Schematic Design Plans and Schematics Task 3 – Packaged Pump Station Design and Pre-Bid Task 4 – Prepare 90-Percent BPS and intertie PRV Design Plans and Specifications Task 5 – Bid Ready Plans and Specifications Task 6 – DOH Construction Documents Task 7 – Services During Bidding Assumptions • Permitting will be completed by City staff for all internal City permits. The City will complete all in-house permitting without assistance from RH2. This may include but is not limited to building permit, grading permit, stormwater permit. • The only permitting requiring RH2 preparation will be Washington State Department of Health (DOH) construction approval. RH2 will complete DOH construction documents for DOH’s review. DOH will allow the pump station to be constructed in phases with smaller initial installation. • RH2 will not be held responsible for delays, occasioned by factors beyond its control, which could not reasonably have been foreseen at the time of the execution of the Agreement. • RH2 will rely on the accuracy and completeness of any data, information, or materials provided by the City, or others in furthering this work. RH2 assumes that the entity providing such information to RH2 is either the owner of such information or has obtained written authorization from the owner to distribute said information. • RH2 will perform the services described in this Scope of Work to the level of effort identified in the Fee Estimate. If additional effort is required or requested, that extra work will be mutually determined by the City and RH2. • The City will need to provide individual PRVs to homes in the lower areas where static pressure exceeds more than 80 pounds per square inch equivalent to elevations below approximately 450 feet. This will be completed in the future by City staff before or soon after the pump station is in operation. Mapping in the predesign report previously prepared by RH2 identifies the City of Arlington Amendment No. 1 640 Zone Booster Pump Station Exhibit A Design and Services During Bidding Scope of Work 3 11/14/2022 6:13:59 AM \\CORP.RH2.COM\DFS\PROJECTS\DATA\ARL\21-0233\00 CONTRACT\AMENDMENT 1 - 640 BPS DESIGN\AMND_NO. 1_SOW_ARL 640 BPS DESIGN AND SDB.DOCX areas where PRVs may be required. RH2 will provide no further assistance in the location or design of individual PRVs. • The City does not desire to complete surveying to aid the design. RH2 will utilize Snohomish County (County) aerial mapping, City GIS mapping, and LiDAR topographic information to develop the plans. As-builts will also be utilized. The design will be schematic in nature for the pump station, generator, power, controls, and water main alignment. The City will confirm utility conflicts, existing locations of the 520 Zone water main, and structural modifications of the altitude valve building. Conflicting utilities will be identified during construction and adjustments to the watermain or utilities will be completed then. • No geotechnical analysis or archeological study will be required to complete the work. A geotechnical report will be made available by the City from the 520 Reservoir design and will be utilized to design footings, utilities, access roads, and drainage elements based on the report’s design recommendations. The report is assumed to allow standard spread footings. • The City will utilize Mission Control for Supervisory Control and Data Acquisition (SCADA) communications, with design to be developed by Mission Control and/or the City. • The pump skid control panel shall be designed by the pump skid provider. Instrumentation design, control panel design, and software development shall be provided by others. • Services During Construction are to be provided under a separate scope of work. Task 1 – Project Management Objective: Manage RH2’s project team and maintain frequent client communications. Monitor the Scope of Work and budget and provide monthly invoices, budget status summaries, and progress reports documenting work completed. Approach: Review and monitor project progress/schedule, scope and budget. Provide direction, coordination, and oversight to the RH2 project team. Document and retain information generated during the execution of the project. Prepare monthly invoices, budget status summaries and progress reports documenting work performed and budget status. RH2 Deliverables: • Monthly statements and invoices with progress reporting in electronic PDF. • Communication with the City. City of Arlington Amendment No. 1 640 Zone Booster Pump Station Exhibit A Design and Services During Bidding Scope of Work 4 11/14/2022 6:13:59 AM \\CORP.RH2.COM\DFS\PROJECTS\DATA\ARL\21-0233\00 CONTRACT\AMENDMENT 1 - 640 BPS DESIGN\AMND_NO. 1_SOW_ARL 640 BPS DESIGN AND SDB.DOCX Task 2 – Develop 30-Percent Engineering Design Plans and Schematics Objective: Confirm that the proposed site and building can accommodate the BPS and an emergency outdoor generator, and generate system head curves to be used for the proposed pump selection and documentation of the proposed improvements. Prepare preliminary 30-percent BPS layout and water main design plans. Coordinate with a packaged pump station manufacturer on the pump station details for pre-bid. Approach: Establish future expansion capabilities (e.g., maximum fire flow capacity for Phase 1 packaged pump station and Phase 2 fire pumps planning). Develop agenda and attend one (1) meeting with City staff to discuss the results of the packaged pump station submittal analysis and confirm it will meet the City’s needs for 5 years with the SPUD intertie used to meet short-term fire flow. Develop meeting minutes. Review as-builts, GIS data, and available aerial mapping from the County and develop existing schematic plans. Share with City staff to confirm. Update drawings from City comments. Prepare preliminary site plan to demonstrate the feasibility of the previously referenced BPS site. This plan will be a schematic layout of the pump station with estimated packaged pump station with electrical panel, outdoor generator, automatic transfer switch, suction and discharge piping going in and out of the building, and SCADA panel on up to three (3) plan sheets. Compare alignments from the pump station to 91st/170th or 91st/172nd to connect to the 640 Zone and determine the recommended alignment for design. Prepare preliminary water main plan view layouts to the 30-percent design level (three [3] plan sheets at 20 to 40 feet per inch scale). Prepare a Construction Stormwater Pollution Prevention Plan to be included within the design plans and a Stormwater Site Plan demonstrating compliance with additional Minimum Requirements as required by new/replaced impervious surfaces and site disturbance activity including water main and power and control conduit construction. Assumptions: • Power service entrance design and coordination will be completed by the City. RH2 will not coordinate with SPUD. • City will confirm need for pneumatic pressure tank(s) with packaged pump station manufacturer. • Meetings are assumed to be virtual via MS Teams. City of Arlington Amendment No. 1 640 Zone Booster Pump Station Exhibit A Design and Services During Bidding Scope of Work 5 11/14/2022 6:13:59 AM \\CORP.RH2.COM\DFS\PROJECTS\DATA\ARL\21-0233\00 CONTRACT\AMENDMENT 1 - 640 BPS DESIGN\AMND_NO. 1_SOW_ARL 640 BPS DESIGN AND SDB.DOCX • The BPS will be constructed on the 520 Reservoir site owned by the City and within the existing altitude valve building. If a different site is needed, it will impact the project schedule and design fees, requiring an amendment to this Scope of Work. • RH2 will not provide hard copies of the deliverables to the City and documents will be provided in electronic PDF. • The project is considered a new development project with expansion of roofing for the generator and controls resulting in two thousand (2,000) square feet, or less, of new plus replaced hard surface area and land disturbing activity of seven thousand (7,000) feet, or less, thus only triggering Minimum Requirement No. 2. If the project exceeds the thresholds requiring additional Minimum Requirements, impacts to the design are anticipated and will require an amendment to this Scope of Work. Provided by the City: • Confirmation of design criteria. • Attendance at a meeting to provide concurrence with the proposed pump selection. • Timely review and comment on existing site plan schematic and proposed 30-percent site plan schematic. • City field locates of existing water main tie in locations for RH2 to document via photographs. RH2 Deliverables: • Meeting agenda in electronic PDF and attendance at one (1) review meeting with City staff. • Preliminary site plans in electronic PDF. Task 3 – Packaged Pump Station Design and Pre-Bid Objective: Coordinate and confirm that the packaged pump station design and specifications meet the City’s needs, will fit in the existing building , and are compatible with hydro pneumatic pressure tank and tie-ins to existing pipe. Approach: Review the design provided by a packaged pump station manufacturer to confirm the capacity meets initial demands for the 640 Zone and fits inside the altitude valve building spare room on the 520 Zone Reservoir site. Perform steady-state hydraulic analyses to calculate the system head curve for the pump station and the net positive suction head available (NPSHA). Analyses will be performed for the system with the proposed water main developer extensions. The hydraulic model currently in RH2’s possession will be used for this analysis. This Scope of Work assumes no additional calibration or updates to the model will be required to perform the analysis outlined herein. Develop generic technical specifications based on the packaged pump station manufacturer’s information for competitive bidding. City of Arlington Amendment No. 1 640 Zone Booster Pump Station Exhibit A Design and Services During Bidding Scope of Work 6 11/14/2022 6:13:59 AM \\CORP.RH2.COM\DFS\PROJECTS\DATA\ARL\21-0233\00 CONTRACT\AMENDMENT 1 - 640 BPS DESIGN\AMND_NO. 1_SOW_ARL 640 BPS DESIGN AND SDB.DOCX Develop contract specifications for competitive bidding. Provide pre-bid package to City staff for bidding. Confirm generator size to operate the pump station in an emergency and consider Phase 2 fire pumps in generator size and fuel tank size . Provide on-call bidding services as required to review bidder questions to the level identified in the attached Fee Estimate and provide addenda for the packaged pump station pre-bid addressing technical questions. Assumptions: • The 520 Reservoir site building has adequate space to place the packaged pump station. The site has adequate space to place the generator without the need for significant grading or retaining walls. • The packaged pump station manufacturer can provide pumps, motors, and controls meeting the requirements of Alternative 1, Phase 1 of the Predesign Report, including controls and power panel with variable frequency drives. SCADA control design will be completed by others under direct contract with the City. • The City will place the advertisement, distribute bid documents, and respond to procedural questions from the bidders. • The City will receive all bidders’ technical questions and record them for forwarding to RH2 at the City’s discretion. • RH2 will not attend the bid opening. • The City will review references, contractor licensing information, contract information, and coordinate bid award and construction contract execution. • On-call services will be billed as required. If on-call services go over budget, the City will pay any overages via amendment to this contract. • The software development and control design shall be completed by others under direct contract with the City. Provided by the City: • Bid forms, contract documents for the packaged pump station pre-bid. • Advertisement and planholder list coordination. • Review of contractual questions and addenda as required. • Attendance at the bid opening. • Preparation of the bid tabulation and recommendation of award letter. City of Arlington Amendment No. 1 640 Zone Booster Pump Station Exhibit A Design and Services During Bidding Scope of Work 7 11/14/2022 6:13:59 AM \\CORP.RH2.COM\DFS\PROJECTS\DATA\ARL\21-0233\00 CONTRACT\AMENDMENT 1 - 640 BPS DESIGN\AMND_NO. 1_SOW_ARL 640 BPS DESIGN AND SDB.DOCX • Review of contractor’s qualifications. • Issue letter of recommendation, notice of award, contract. RH2 Deliverables: • Provide written documentation that the pump selection meets short-term, 5-year demands in electronic PDF. Written documentation that the packaged pump station meets the requirements necessary to meet flows of 50 to 710 gpm at pressures equivalent to supply water at 640 to 625 feet in elevation. Efficiencies are expected to meet 70-percent and above throughout the range of pump operation subject to availability by the manufacturer. • Pre-bid package in electronic PDF. • On-call communication via phone and email, and addenda in electronic PDF. Task 4 – Prepare 90-Percent Design Plans and Specifications Objective: Prepare 90-percent design plans, specifications, and Opinion of Probable Construction Costs (OPCC) incorporating the results of other tasks and review comments of the preliminary design review by City staff. Approach: Perform a site visit to review existing site plans and document site and altitude valve building components. Prepare structural calculations to size garage door header and design wall retrofit. Address the City’s preliminary plan review comments. Develop the design plans and details to the 90-percent design level including the following plan sheets. a) Cover page (one [1] sheet). b) General notes and SWPPP ( [2] sheets). c) Existing, Demolition, and TESC plan and details (three [3] sheets). d) Construction site plan and site details (two [2] sheets). e) Water main plans connecting to 91st and 172nd corner (three [3] sheets). f) Water main connection details (one [1] sheet). g) Building garage door opening schematic (to fit pump station inside). h) Building structural plan and details (four [4] sheets) including interior non-bearing wall removal and roof plan for generator. i) Pump Station layout plan (one [1] sheet). j) Pump Station power plan and details (one [1] sheet). k) Pump Station generator plan and details (three [3] sheets). City of Arlington Amendment No. 1 640 Zone Booster Pump Station Exhibit A Design and Services During Bidding Scope of Work 8 11/14/2022 6:13:59 AM \\CORP.RH2.COM\DFS\PROJECTS\DATA\ARL\21-0233\00 CONTRACT\AMENDMENT 1 - 640 BPS DESIGN\AMND_NO. 1_SOW_ARL 640 BPS DESIGN AND SDB.DOCX l) Fence restoration details (one [1] sheet). Develop non-technical specifications (bid forms, contract forms, general conditions, special conditions) using the City’s standard legal documents. Develop technical specifications using RH2 technical facility specifications tailored for this project. Develop 90-percent electrical technical specifications using RH2 technical facility specifications tailored for this project. Develop a schedule of prices, measurement and payment descriptions, and OPCC. Perform in-house quality assurance and quality control review of the 90-percent design and update the design accordingly. Provide 90-percent package to City as electronic PDF. Meet once with City staff to review 90-percent drawings and specifications to discuss and gather comments. Develop agenda and minutes. Provided by the City: • Power drop and coordination with SPUD. • SCADA design and integration. • Contract specifications in MS Word format. • Written comments on 90-percent package. • Drawings and specifications review and participation in 90-percent review meeting. RH2 Deliverables: • Attendance at 90-percent review meeting. • 90-percent design plans, specifications, and OPCC in electronic PDF. Task 5 – Bid-Ready Plans and Specifications Objective: Finalize design plans and specifications and produce bid-ready documents for the project. Approach: Advance 90-percent design plans, details, technical specifications, and construction contract documents to bid-ready documents per 90-percent review comments from the City. Prepare a bid-ready OPCC for City review. Provide bid-ready documents to the City for the purpose of bidding. RH2 Deliverables: • OPCC in electronic PDF. • Bid-ready construction documents in electronic PDF. City of Arlington Amendment No. 1 640 Zone Booster Pump Station Exhibit A Design and Services During Bidding Scope of Work 9 11/14/2022 6:13:59 AM \\CORP.RH2.COM\DFS\PROJECTS\DATA\ARL\21-0233\00 CONTRACT\AMENDMENT 1 - 640 BPS DESIGN\AMND_NO. 1_SOW_ARL 640 BPS DESIGN AND SDB.DOCX Task 6 – DOH Construction Documents Objective: Prepare and submit construction documents to DOH. Approach: Prepare and submit construction documents to DOH based on applicable Washington Administrative Code requirements. Respond to DOH comments by letter, if necessary, to help obtain project report approval. RH2 cannot warrant or guarantee agency approvals or review periods. RH2 assumes one (1) round of comments will be required. Assumptions: • The City will identify the necessary project permits, and prepare and submit the necessary permit applications, drawings, and supporting documents. • The City will pay permit fees and costs directly to all permitting agencies, including but not limited to, DOH, and the County. Provided by the City: • Permit application fees. RH2 Deliverables: • DOH construction documents and form submitted to DOH in PDF and MS Word format. • Response letter to DOH as necessary in electronic PDF. Task 7 – Services During Bidding Objective: Provide assistance to the City during the bidding phase. Approach: Provide on-call services during bidding, including responding to bidders’ technical questions as directed during the bidding process, which is anticipated to last four (4) weeks. RH2 will not coordinate directly with bidders. RH2 will receive bidder questions from the City and provide responses to the City. Prepare addenda in electronic format for the City to distribute to the plan holders. Attend bid opening via online meeting. Assumptions: • The City will place the advertisement, distribute bid documents, and respond to procedural questions from the bidders. • The City will receive all bidders’ technical questions and record them for forwarding to RH2 at the City’s discretion. City of Arlington Amendment No. 1 640 Zone Booster Pump Station Exhibit A Design and Services During Bidding Scope of Work 10 11/14/2022 6:13:59 AM \\CORP.RH2.COM\DFS\PROJECTS\DATA\ARL\21-0233\00 CONTRACT\AMENDMENT 1 - 640 BPS DESIGN\AMND_NO. 1_SOW_ARL 640 BPS DESIGN AND SDB.DOCX • Bid opening will be completed by the City in an online format with invitation to RH2 and bidding contractors. • On-call services will be billed as required. If on-call services go over budget, the City will pay any overages via amendment to this contract. Provided by the City: • Attendance at the bid opening. • Preparation of the bid tabulation and recommendation of award letter. • Review of contractor’s qualifications. • Issue letter of recommendation, notice of award, contract coordination, and procurement. RH2 Deliverables: • Responses to bidder questions provided by the City. • Addenda in electronic PDF. Project Schedule RH2 can begin work upon receipt of written authorization from the City, with the goal of completing the design and bidding services within eight (8) months from the City’s contract execution. Bid-ready plans, OPCC, and construction documents can be completed by July 2023. The DOH construction documents are anticipated to be completed and submitted to DOH by June 2023. Turnaround time by DOH may affect the project schedule. Services during bidding for construction of the pump station and water main is anticipated to occur in August 2023 for late Summer and Fall 2023 construction. A scope of work and fee estimate for services during construction will be provided under a separate amendment. EXHIBIT B Fee Estimate Amendment No. 1 City of Arlington 640 Zone Booster Pump Station Design, Packaged Pump Station Pre-Bid, and Services During Bidding Nov-22 Description Principal Project Manager Project Engineer Staff Engineer Electrical Principal Electrical Project Manager Electrical Staff Engineer Structural Project Manager Structural Staff Engineer Project Accounting Administrative Support Total Hours Total Labor Total Expense Total Cost Task 1 Project Management 3 52 14 ------8 -66 14,470$ 529$ 14,999$ 1.1 Review and monitor project progress 1 8 2 -------11 2,543$ 91$ 2,634$ 1.2 Provide direction to RH2 project team 1 16 4 -------21 4,825$ 176$ 5,001$ 1.3 Document and retain information 1 16 4 -------21 4,825$ 176$ 5,001$ 1.4 Prepare monthly invoices and budget status summaries -12 4 ------8 -24 4,820$ 178$ 4,998$ Task 2 Develop 30-Percent Engineering Design Plans and Schematics -17 80 88 -2 8 ---2 197 36,284$ 3,964$ 40,248$ 2.1 Establish future expansion capabilities -2 8 8 ------18 3,372$ 362$ 3,734$ 2.2 Develop agenda and attend one (1) City meeting -4 4 4 ------12 2,388$ 202$ 2,590$ 2.3 Develop schematic base map -2 16 16 -2 8 ---44 7,980$ 920$ 8,900$ 2.4 Prepare preliminary site plan -2 16 16 ------34 6,276$ 684$ 6,960$ 2.5 Compare main alignments for design -1 4 4 ------9 1,686$ 185$ 1,871$ 2.6 Prepare 30-percent design plans -2 8 16 ------26 4,636$ 561$ 5,197$ 2.7 Prepare SWPPP and stormwater site plan -4 24 24 -----2 54 9,946$ 1,051$ 10,997$ Task 3 Packaged Pump Station Design and Pre-Bid -40 36 10 6 18 14 ----124 25,998$ 1,642$ 27,640$ 3.1 Review packaged pump station design and perform hydraulic analyses -24 12 -2 4 6 ---48 10,406$ 535$ 10,941$ 3.2 Develop pre-bid technical specifications -4 8 -2 6 2 ---22 4,714$ 268$ 4,982$ 3.3 Develop pre-bid contract specifications -4 4 -------8 1,756$ 104$ 1,860$ 3.4 Provide bid package to City staff -4 8 8 ------20 3,840$ 384$ 4,224$ 3.5 Confirm generator sizing ----2 4 4 ---10 2,014$ 133$ 2,147$ 3.6 Provide on-call services during bidding -4 4 2 -4 2 ---16 3,268$ 219$ 3,487$ Task 4 Prepare 90-Percent Design Plans and Specifications 6 67 94 116 8 36 68 30 56 -12 493 92,750$ 9,021$ 101,771$ 4.1 Perform site visit -4 4 6 -4 6 4 4 -32 6,044$ 549$ 6,593$ 4.2 Prepare structural calculations for opening and wall -1 4 4 ---4 12 -25 4,462$ 617$ 5,079$ 4.3 Address City's preliminary plan review comments 2 16 54 90 4 24 60 16 32 -298 53,896$ 6,060$ 59,956$ 4.4 Develop contract specifications -16 8 ------2 26 5,682$ 243$ 5,925$ 4.5 Develop technical specifications -16 8 4 -6 4 4 -42 8,848$ 534$ 9,382$ 4.6 Develop schedule of prices, measurement and payment, and OPCC -8 8 8 -----2 26 5,074$ 402$ 5,476$ 4.7 Perform in-house QA/QC review 4 4 4 -4 2 4 4 26 5,472$ 274$ 5,746$ 4.8 Prepare 90-percent drawings, specifications, and OPCC and attend review meeting with City staff -2 4 4 -2 2 --4 18 3,272$ 343$ 3,615$ Task 5 Bid-Ready Plans and Specifications 4 12 32 48 2 10 30 2 4 -6 150 27,404$ 2,927$ 30,331$ 5.1 Finalize plans, specifications, and construction contract documents 4 8 24 40 2 8 24 2 4 2 118 21,580$ 2,396$ 23,976$ 5.2 Prepare bid-ready OPCC for City review -2 4 4 -2 2 ---14 2,676$ 233$ 2,909$ 5.3 Provide bid-ready documents -2 4 4 -4 --4 18 3,148$ 299$ 3,447$ Task 6 DOH Construction Documents -4 14 --4 4 ---4 30 5,914$ 519$ 6,433$ 6.1 Prepare and submit construction documents to DOH -2 8 --2 2 --2 16 3,162$ 340$ 3,502$ 6.2 Respond to DOH review comments via letter -2 6 --2 2 --2 14 2,752$ 179$ 2,931$ Task 7 Services During Bidding 1 4 8 -1 8 4 8 4 --38 7,872$ 472$ 8,344$ 7.1 Provide on-call services during bidding 1 4 8 -1 8 4 8 4 -38 7,872$ 472$ 8,344$ 7.2 Attend virtual bid opening ------------$ -$ -$ PROJECT TOTAL 14 196 278 262 17 78 128 40 64 8 24 1109 213,235$ 19,166$ 232,401$ Z:\Projects\Data\ARL\21-0233\00 Contract\Amendment 1 - 640 BPS Design\Amnd_No. 1_FEE_ARL 640 BPS Design and SDB.xlsm 11/14/2022 10:35 AM RATE LIST RATE UNIT Professional I $158 $/hr Professional II $173 $/hr Professional III $190 $/hr Professional IV $205 $/hr Professional V $220 $/hr Professional VI $234 $/hr Professional VII $251 $/hr Professional VIII $261 $/hr Professional IX $261 $/hr Control Specialist I $143 $/hr Control Specialist II $156 $/hr Control Specialist III $171 $/hr Control Specialist IV $186 $/hr Control Specialist V $198 $/hr Control Specialist VI $212 $/hr Control Specialist VII $228 $/hr Control Specialist VIII $237 $/hr Technician I $120 $/hr Technician II $131 $/hr Technician III $148 $/hr Technician IV $160 $/hr Technician V $175 $/hr Technician VI $191 $/hr Technician VII $207 $/hr Technician VIII $218 $/hr Administrative I $78 $/hr Administrative II $92 $/hr Administrative III $111 $/hr Administrative IV $131 $/hr Administrative V $149 $/hr CAD/GIS System $27.50 $/hr CAD Plots - Half Size $2.50 price per plot CAD Plots - Full Size $10.00 price per plot CAD Plots - Large $25.00 price per plot Copies (bw) 8.5" X 11"$0.09 price per copy Copies (bw) 8.5" X 14"$0.14 price per copy Copies (bw) 11" X 17"$0.20 price per copy Copies (color) 8.5" X 11"$0.90 price per copy Copies (color) 8.5" X 14"$1.20 price per copy Copies (color) 11" X 17"$2.00 price per copy Technology Charge 2.50%% of Direct Labor Mileage $0.6250 price per mile (or Current IRS Rate) Subconsultants 15%Cost + Outside Services at cost EXHIBIT C RH2 ENGINEERING, INC. 2022 SCHEDULE OF RATES AND CHARGES Rates listed are adjusted annually. MARYSVILLE WATER SERVICE AREA 342 PRESSURE ZONE 520 PRESSURE ZONE 710 PRESSURE ZONE 640 PRESSURE ZONE 520 Reservoir Airport Well Field 640 Reservoir (Future) Gleneagle Reservoir Gleneagle Booster Pump Station 520 Booster Pump Station PUD Inertie Haller Well Field Arlington Limits CWSP Water Sources Reservoirs 640 Reservoir (Future) Booster Pump Stations Water Pressure Zones 342 PRESSURE ZONE 520 PRESSURE ZONE 640 PRESSURE ZONE MARYSVILLE WATER SERVICE AREA 710 PRESSURE ZONE Streams downloaded from Snohomish County FTP site. Maps and GIS data are distributed “AS-IS” without warranties of any kind, either express or implied, including but not limited to warranties of suitability for a particular purpose or use. Map data are compiled from a variety of sources which may contain errors and users who rely upon the information do so at their own risk. Users agree to indemnify, defend, and hold harmless the City of Arlington for any and all liability of any nature arising out of or resulting from the lack of accuracy or correctness of the data, or the use of the data presented in the maps. µLegend Scale: Date: File Name: Cartographer: City of Arlington Water Pressure Zone Map 1 inch = 3,000 ft Waterlayouts/WaterPressureZones11x17_23 akc 7/25/2023 ??Ó !"`$ Waterbodies downloaded from WADNR City of Arlington Council Agenda Bill NB #2 Attachment July 31, 2023 Dedication of Real Property for Public Right of Way Legal description with exhibit map, illustrative map Community and Economic Development; Marc Hayes, Director 360-403-3457 EXPENDITURES REQUESTED: 0 BUDGET CATEGORY: 0 BUDGETED AMOUNT: 0 LEGAL REVIEW: DESCRIPTION: Exhibit “A”. To provide for improvements associated with the Pilchuck Village project. Dedication of real property for Right of Way purposes related to new development typically occurs through the land use process pursuant to 20.56.170 AMC. This dedication was a requirement of the Pilchuck Village Mixed-Use project. ALTERNATIVES: Remand to staff for additional information. Exhibit A PWD 2266 ROW Dedication±City of Arlington Date: File: Cartographer: Maps and GIS data are distributed “AS-IS” without warranties of any kind, either express or implied, including but not limited to warranties of suitability for a particular purpose or use. Map data are compiled from a variety of sources which may contain errors and users who rely upon the information do so at their own risk. Users agree to indemnify, defend, and hold harmless the City of Arlington for any and all liability of any nature arising out of or resulting from the lack of accuracy or correctness of the data, or the use of the data presented in the maps. Scale: Name: EasementsLayouts Name of Map: Pilchuck Village 6/16/2023 akc Le g e n d Right-of-Way Dedication Pilchuck Village 72 N D A V E N E 71 S T A V E N E 74 T H A V E N E 204TH ST NE 1:1,600Aerial 2022 ROW Dedication City of Arlington Council Agenda Bill NB #3 Attachment July 31, 2023 Smokey Point Park Update None. Will provide handouts at meeting. DEPARTMENT OF ORIGIN Community and Economic Development; Marc Hayes, Director 360-403-3457 EXPENDITURES REQUESTED: 0 BUDGET CATEGORY: 0 BUDGETED AMOUNT: 0 LEGAL REVIEW: DESCRIPTION: schedule, preliminary cost estimates and adjusted site plan. ALTERNATIVES: City of Arlington Council Agenda Bill NB #4 Attachment July 31, 2023 Architectural and Engineering Services for the Police Impound Facility and Public Works Storage Proposal for Architectural and Engineering Services Administration; Paul Ellis, City Administrator 360-403-4603 EXPENDITURES REQUESTED: Not to Exceed $286,447.00 BUDGET CATEGORY: BUDGETED AMOUNT: Facilities Capital $300,000 LEGAL REVIEW: DESCRIPTION: storage for Public Works. The facility will also include a classroom for city training, mat room and police training area. documents for the project. The city compost facility is being decommissioned. It is more cost effective to outsource this process. The facility was constructed in 2005 and has many years of useful life remaining. ALTERNATIVES: I move to approve the proposal for architectural and engineering services with Carletti Architects, P.S., and authorize the Mayor to sign the contract, subject to final review by the City Attorney.