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02/20/2024 - PacketPort Orchard Council Finance Committee February 20, 2024 4:30 pm-5:30 Zoom Link Council Conference Room https://us02web.zoom. us/j/88963914993 US: +12532158782„ 88963914993# or +12532050468„ 88963914993# 1) Finance Committee Overview (5 mins) Finance Director, Noah Crocker a. Schedule b. Expectations c. Committee Chair Selection 2) Finance Department (15 mins) Finance Director, Noah Crocker a. Sales Tax & REET Revenue Report b. Preliminary Treasurers Report — Funds, accounts c. Monthly budget Report 3) Transportation Rev Funding ioi (15 mins) Finance Director, Noah Crocker 4) TIP 1.15 Pottery Project Update (lo mins) 5) ER&R Police Vehicles Update (5 mins) 6) Right of Way (ROW) Employee (10 mins) Other Items to come before the Committee. Schedule Next Meeting Date Role of the Finance Committee Finance Director, Noah Crocker Finance Director, Noah Crocker DCD Director, Nick Bond The finance committee provides oversight of city budgeting, financial planning, and financial reporting. The committee recommends long-range financial goals along with funding strategies for the operating and capital budgets. Human resource issues requiring policy direction are brought before the committee. The committee serves as the advisory forum for transportation and street maintenance funding, and funding relating to the transportation benefit district. Sales Tax Collections Population Summary of Budget to Actuals 2022 2023 2024 Biennial Budget Actual 5,340,000 6,865,000 6,895,000 13,760,000 7,783,763 7,719,461 631,079 8,350,540 Over/Under $ 2,443,763 $ 854,461 $ (6,263,921) $ (5,409,460) Actuals 2022 2023 2024 Biennial January February March April May June July August September October November December $ 543,145 626,678 524,545 548,118 665,944 682,922 668,890 742,304 707,709 693,521 730,655 649,332 $ 656,711 $ 684,990 572,419 539,880 606,994 616,122 689,627 725,037 663,517 653,847 684,362 625,956 631,079 $ 1,287,789 $ 684,990 $ 572,419 $ 539,880 $ 606,994 $ 616,122 $ 689,627 $ 725,037 $ 663,517 $ 653,847 $ 684,362 $ 625,956 Total $ 7,783,763 $ 7,719,461 $ 631,079 $ 8,350,540 Percentage of Biennial Budget Received 61% Actuals Year over Year % Change Change $ (25,632) -3.90% $ (25,632) Real Estate Excise Tax (REET) Collections Summary of Budget to Actuals 2022 2023 2024 Biennial Budget Actual $ 1,808,000 1,945,903 $ 1,800,000 2,112,110 $ 1,600,000 107,320 $ 3,400,000 $ 2,219,431 Over/Under $ 137,903 $ 312,110 $ (1,492,680) $ (1,180,569) 108% Actuals 2022 2023 2024 Biennial January February March April May June July August September October November December $ 82,213 166,226 204,469 126,410 151,824 190,761 249,922 172,743 181,406 151,035 121,635 147,258 $ 81,265 $ 137,211 158,612 150,287 189,577 237,539 233,708 172,573 280,056 154,352 140,293 1 176,638 107,320 $ 188,585 $ 137,211 $ 158,612 $ 150,287 $ 189,577 $ 237,539 $ 233,708 $ 172,573 $ 280,056 $ 154,352 $ 140,293 $ 176,638 Total $ 1,945,903 $ 2,112,110 $ 107,320 $ 2,219,431 Percentage of Biennial Budget Received 65% Actuals Year over Year Change % Change $ 26,055 32.06% $ 26,055 32.06% Budget 2024 estimated Budget vs Actual % based on 5yr avg (Over/Under) Over/Under $ 516,190 $ 114,889 22.3% $ 620,872 #VALUE! $ 479,509 #VALUE! $ 461,296 #VALUE! $ 570,567 #VALUE! $ 566,524 #VALUE! $ 611,506 #VALUE! $ 642,161 #VALUE! $ 617,092 #VALUE! $ 606,655 #VALUE! $ 630,537 #VALUE! 572,093 #VALUE! N$ $ 6,895,000 1 $ 114,8891 22.26% Budget 2024 estimated Budget vs Actual % based on 5yr avg (Over/Under) Over/Under $ 80,407 $ 26,913 33.5% $ 122,603 #VALUE! $ 134,793 #VALUE! $ 118,291 #VALUE! $ 108,281 #VALUE! $ 139,665 #VALUE! $ 231,669 #VALUE! $ 133,480 #VALUE! $ 155,823 #VALUE! $ 128,521 #VALUE! $ 94,003 #VALUE! $ 152,465 #VALUE! $ 1,600,000 $ 26,913 339/. -5% Detail Report Fund Beginning Balance Total Activity Ending Balance 001- Current Expense 17,340,466.27 654,192.97 17,994,659.24 002 - City Street Fund 3,973,262.66 62,769.15 4,036,031.81 003 - Stabilization Fund 3,071,749.84 14,031.15 3,085,780.99 103 - Criminal Justice 752,330.57 53,763.84 806,094.41 104 - Special Investigative Unit 100,905.54 316.85 101,222.39 107 - Community Events 393,879.33 10,960.22 404,839.55 108 - Paths & Trails 15,810.93 169.47 15,980.40 109 - Real Estate Excise Tax 6,065,090.10 124,060.03 6,189,150.13 111- Impact Mitigation Fee 8,124,687.21 608,964.12 8,733,651.33 206 - Bond Redemption Fund 100,014.85 460.58 100,475.43 302 - Capital Construction 7,950,685.54 36,472.79 7,987,158.33 304 - Street Capital Projects 2,154,009.24 158,836.08 2,312,845.32 401- Water -Sewer Utilities 0.00 0.00 0.00 403 - Water -Sewer Cumulative Reserve 0.00 0.00 0.00 411- Water Operating 4,444,997.90 166,566.03 4,611,563.93 412 - Water Stabilization 1,016,948.71 4,683.03 1,021,631.74 413 - Water Capital 8,258,227.27 101,081.86 8,359,309.13 414 - Water Debt Service 0.00 0.00 0.00 421- Storm Drainage Utility 1,784,151.08 115,095.30 1,899,246.38 422 - Storm Drainage Stabilization 571,363.28 2,631.12 573,994.40 423 - Storm Drainage Capital Facil 201,866.02 929.59 202,795.61 424 - Storm Drainage Debt Service 0.00 0.00 0.00 431- Sewer Operating 7,766,166.23 224,218.74 7,990,384.97 432 - Sewer Stabilization 1,521,908.99 7,008.37 1,528,917.36 433 - Sewer Capital 7,446,695.94 386,341.40 7,833,037.34 434 - Sewer Debt Service 863,148.28 3,974.78 867,123.06 500 - Equipment Rental and Revolving 3,784,187.48 38,625.91 3,822,813.39 631- Trust and Agency 27.00 7,418.41 7,445.41 632 - Wastewater Treatment Facil Fee 6,411,758.15 178,685.94 6,590,444.09 Grand Total: 94,114,338.41 2,962,257.73 97,076,596.14 2/20/2024 1:00:58 PM Date Range: 01/01/2024 - 01/31/2024 Fund Summary Page 5 of 5 O R ORCHARD MONTHLY BUDGET FINANCIAL STATUS UPDATE To: Mayor and Council members From: Noah Crocker, Finance Director Period: January 2024 OVERVIEW: The Finance Department is committed to providing clear information to the Mayor, Council, and staff regarding the budget status of the city. We have prepared the following reports to keep you up to date on the current budget status of the city. 1) Budget Report 2) Detail Fund Summary Report BUDGET REPORT: The Budget report will first provide Operational Funds and follow up with Capital Projects Funds. This report does not include beginning fund balance. This report is designed to provide a high-level view of each fund reviewing total revenues and expenses. The report does provide expense information by department. The goal of the city is to pay all current budget year expenses with current budget year revenues. We are not quite there yet, and this will show in the Surplus (Deficit) line at the end of each fund. We expect that future budget cycles will smooth out revenues and expenditures. The Budget Report provides information on current revenues and expenditures by fund including the following: • The original budgeted amount. • Current budget which would reflect any amendments that have been made. • Period activity which details the revenue and expense activity for the period in which the report was run. • Fiscal activity will provide the year-to-date expense and revenue amounts. • Variance Shows the difference between budgeted and actual. • The percentage remaining is the amount still needed to reach the budgeted amount. CASH AND INVESTMENT FUND SUMMARY The Cash and Investment Fund Summary provides information on current total cash & investment balances by Fund. POINTS OF INTEREST: Current Expense Fund 001 - The Current Expense Fund is used for the general governmental functions of the City. As of January 31, 2024, 11% of budgeted revenues were received. The table provides budget versus actual (YTD) data by source of revenue. 024 % of Received 2024 Current Revenue Source Original Budget 2024 YTD Budget Property Tax 2,245,000 2,407,886 7,291 Received 0.30% PeriodBudget 7,291 Sales Tax 6,895,000 6,895,000 631,079 9.15% 631,079 Other Taxes 2,156,000 2,156,000 403,780 18.73% 403,780 Total Taxes 11,296,000 11,458,886 1,042,150 9.09% 1,042,150 Licenses & Permits 601,200 601,200 222,270 36.97% 222,270 Intergovernmental Revenue 291,700 488,200 49,886 10.22% 49,886 Charges for Goods & Services 448,600 398,600 58,184 14.60% 58,184 Fines & Penalties 128,000 128,000 7,320 5.72% 7,320 Misc Revenues 121,500 46,500 92,541 199.01% 92,541 Non -Revenues - - 5,835 #DIV/0! 5,835 Other Financing Pr #DIV/0! Capital Contributions - - 8,871 8,871 1,487,057 REVENUE TOTALS 12,887,000 13,121,386 1,487,057 11.33% SALES TAX REVENUES SUMMARY • Total 2024 Budget: $6,895,000 • Total 2024 YTD Actuals: $631,079 • Year -to -Date Actual revenue collected is 3.90% lower when compared to Prior Year -to Date Actuals • Year -to -Date Actual revenue collected is 22.26% higher when compared to Year -to Date Budgeted The following tables provide additional sales tax information: Table 1: shows revenue received by month over a three-year period. Monthly Sales Tax -Three Year Comparison 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 q Table 2: provides current data for sales tax revenue collected Year-to-date. 1 a0 , °e J 0 1 1 ■ 2022 Aaual I 1 _ ■ 2023 Actual ■ 2024 YT�Ac[ual 1 1 ■� ■ ■ ■ ■1 del oft oec o�e� sec z�e� $700,000 Sales Tax Revenues $600,000 $saa,00o $400,000 mammiActuak2024 Budget 2024 $300,000 $200,000 — $100,000 met met Real Estate Excise Tax (REET) Fund 109 and Impact Mitigation Fee Fund 111 The City's Real Estate Excise Tax receipts fluctuate monthly. January 2024 receipts are higher than January 2023 by 32%. Total Real estate Excise Tax revenues have a YTD growth rate of 32%. The table below shows balances through January for REET 1 & 2 and Impact fees. These restricted funds are used as a local funding source for capital projects that have been documented in the City's comprehensive plans. REET funds are also used for debt payments. The table above shows 2024 beginning fund balances, biennial revenue received to date, expenses budgeted for the biennium and expenses which are obligated for future projects but have not yet been officially budgeted. The intent of this table is to snapshot and illustrate available balances and what is projected for the end of the biennium. Impact Fees received for January 2024 are as follows: o Parks $287,582 o Transportation $215,327 o School District Impact $80,996 REET revenues received in January: o REET 1 $53,660 o REET 2 $53,660 Capital Construction Fund 302 —The City Hall construction was started in January with the Roof and interior remodeling of the Police Department. The Police are expected to be moving back into their remodeled space by the end of March to early April. The 2nd floor renovations will begin mid -late March. Street Capital Construction Fund 304 —Bay Street Pedestrian Path right of way efforts continue. The City has contracted with Skilling's Inc for Design and Right of Way Services for the Bethel -Lincoln Round -About project. Design for the project is in progress. ENTERPRISE/UTILITY FUNDS: Water operation - Water operations budgeted revenue in the amount of $3,949,000 for 2024. Through January, the city has received $296,200 or —8% of the 2024 budgeted revenues. Revenues for the water utility, in winter and spring, are typically lower with larger monthly revenues received during the warmer summer and fall months. Water Operations expended $127,516 through January representing ^3.28% of the 2024 budget. In addition, the water operational budget includes transfers which occur throughout the year. The City manages its transfers according to policy goals, cashflow needs, and realized expenses for water capital projects, stabilization targets, and debt service payments. The 2024 budget includes $1,578,445 for transfers. A total of $2,117.39 was transferred out to fund 413 for Well 11 expenses. 700,000 600,000 500,000 400,000 300,000 200,000 100,000 Water Service Payments Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov ❑ec ■ 2022 ■ 2023 ■ 2024 Sewer operation — Sewer operations budgeted revenue in the amount of $5,701,000 is budgeted for 2024. Through January, the city has received $500,392 or —9% of the 2024 budgeted revenues. Sewer Operations expended $274,443 through January representing —5% of the 2024 budget. The sewer operational expense budget includes transfers which occur throughout the year. The City manages its transfers according to policy goals, cashflow needs, and realized expenses for sewer capital projects, stabilization targets, and debt service payments. The 2024 budget includes $1,154,720 for transfers. A total of $1,730 was transferred out to fund 433 for Marina Pump Station expenses. Sewer Service Payments 700,000.00 600,000.00 500,000.00 400,000.00 ■ 2022 300,000.00 ■ 2023 ■ 2024 200,000.00 100,000.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Storm Drainage operations- Storm Operations budgeted revenue in the amount of $1,745,000 for 2024. Through January, the city has received $184,657 or —11% over its annual budgeted revenue. Storm Drainage Operations expended $61,300 through January representing —3.3% of the 2024 operating budget. The storm drainage operational budget includes transfers which occur throughout the year. The City manages its transfers according to policy goals, cashflow needs, and realized expenses for storm capital projects, stabilization targets, and debt service payments. The 2024 budget includes $320,150 for transfers. A total of $8,263 was transferred out to fund 424 debt service payments for the Decant Facility. Storm Drainage Payments 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 r Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ■ 2022 ■ 2023 ■ 2024 Budget Report OPERATIONS BUDGET For Fiscal: 2024 Period Ending: 01/31/2024 Group Summary Variance Original Current Period Fiscal Favorable Percent Departmen... Total Budget Total Budget Activity Activity (Unfavorable) Remaining Fund: 001- Current Expense Revenue 00 - Revenues 12,887,000.00 13,121,386.00 1,487,057.33 1,487,057.33 -11,634,328.67 88.67% Revenue Total: 12,887,000.00 13,121,386.00 1,487,057.33 1,487,057.33 -11,634,328.67 88.67% Expense 01- Finance 1,107,300.00 1,409,300.00 60,344.46 60,344.46 1,348,955.54 95.72% 02 - Court 797,000.00 797,000.00 38,813.20 38,813.20 758,186.80 95.13% 03 - Law Enforcement 6,017,120.00 6,793,080.00 356,572.91 356,572.91 6,436,507.09 94.75% 04 - Community Development 2,395,850.00 2,966,370.00 154,222.62 154,222.62 2,812,147.38 94.80% 05 - Public Works 2,216,887.00 2,593,257.00 62,042.05 62,042.05 2,531,214.95 97.61% 06 - Miscellaneous 0.00 2,000,000.00 3,104.86 3,104.86 1,996,895.14 99.84% 07 - Administration 1,888,531.00 1,961,531.00 157,764.26 157,764.26 1,803,766.74 91.96% Expense Total: 14,422,688.00 18,520,538.00 832,864.36 832,864.36 17,687,673.64 95.50% Fund: 001- Current Expense Surplus (Deficit): -1,535,688.00 -5,399,152.00 654,192.97 654,192.97 6,053,344.97 112.12% Fund: 002 - City Street Fund Revenue 00 - Revenues 1,731,004.00 1,830,547.00 133,347.13 133,347.13 -1,697,199.87 92.72% Revenue Total: 1,731,004.00 1,830,547.00 133,347.13 133,347.13 -1,697,199.87 92.72% Expense 05 - Public Works 2,665,396.00 2,823,666.00 70,577.98 70,577.98 2,753,088.02 97.50% Expense Total: 2,665,396.00 2,823,666.00 70,577.98 70,577.98 2,753,088.02 97.50% Fund: 002 - City Street Fund Surplus (Deficit): -934,392.00 -993,119.00 62,769.15 62,769.15 1,055,888.15 106.32% Fund: 003 - Stabilization Fund Revenue 00 - Revenues 0.00 0.00 14,031.15 14,031.15 14,031.15 0.00% Fund: 103 - Criminal Justice Revenue 00 - Revenues Revenue Total Fund: 003 - Stabilization Fund Total 0.00 0.00 14,031.15 14,031.15 14,031.15 0.00% 0.00 0.00 14,031.15 14,031.15 14,031.15 0.00% 384,000.00 384,000.00 56,284.61 56,284.61-327,715.39 85.34% Revenue Total: 384,000.00 384,000.00 56,284.61 56,284.61-327,715.39 85.34% Expense 03 - Law Enforcement 495,100.00 637,100.00 2,520.77 2,520.77 634,579.23 99.60% Expense Total: 495,100.00 637,100.00 2,520.77 2,520.77 634,579.23 99.60% Fund: 103 - Criminal Justice Surplus (Deficit): -111,100.00 -253,100.00 53,763.84 53,763.84 306,863.84 121.24% Fund: 104 - Special Investigative Unit Revenue 00 - Revenues 4,000.00 4,000.00 316.85 316.85 -3,683.15 92.08% Revenue Total: 4,000.00 4,000.00 316.85 316.85 -3,683.15 92.08% Expense 03 - Law Enforcement 4,000.00 4,000.00 0.00 0.00 4,000.00 100.00% Expense Total: 4,000.00 4,000.00 0.00 0.00 4,000.00 100.00% Fund: 104 - Special Investigative Unit Surplus (Deficit): 0.00 0.00 316.85 316.85 316.85 0.00% Fund: 107 - Community Events Revenue 00 - Revenues 102,200.00 102,200.00 11,645.47 11,645.47 -90,554.53 88.61% Revenue Total: 102,200.00 102,200.00 11,645.47 11,645.47 -90,554.53 88.61% Expense 07 - Administration 102,200.00 127,200.00 685.25 685.25 126,514.75 99.46% Expense Total: 102,200.00 127,200.00 685.25 685.25 126,514.75 99.46% Fund: 107 - Community Events Surplus (Deficit): 0.00 -25,000.00 10,960.22 10,960.22 35,960.22 143.84% 2/20/2024 1:38:12 PM Page 13 of 17 Budget Report For Fiscal: 2024 Period Ending: 01/31/2024 Variance Original Current Period Fiscal Favorable Percent Departmen... Total Budget Total Budget Activity Activity (Unfavorable) Remaining Fund: 108 - Paths & Trails Revenue 00 - Revenues 1,000.00 1,000.00 169.47 169.47 -830.53 83.05% Revenue Total: 1,000.00 1,000.00 169.47 169.47 -830.53 83.05% Fund: 108 - Paths & Trails Total: 1,000.00 1,000.00 169.47 169.47 -830.53 83.05% Fund: 109 - Real Estate Excise Tax Revenue 00 - Revenues 800,000.00 1,600,000.00 124,060.03 124,060.03 -1,475,939.97 92.25% Revenue Total: 800,000.00 1,600,000.00 124,060.03 124,060.03 -1,475,939.97 92.25% Expense 06 - Miscellaneous 298,000.00 1,397,000.00 0.00 0.00 1,397,000.00 100.00% Expense Total: 298,000.00 1,397,000.00 0.00 0.00 1,397,000.00 100.00% Fund: 109 - Real Estate Excise Tax Surplus (Deficit): 502,000.00 203,000.00 124,060.03 124,060.03 -78,939.97 38.89% Fund: 111- Impact Mitigation Fee Revenue 00 - Revenues 5,207,900.00 5,207,900.00 616,863.87 616,863.87 -4,591,036.13 88.16% Revenue Total: 5,207,900.00 5,207,900.00 616,863.87 616,863.87 -4,591,036.13 88.16% Expense 06 - Miscellaneous Expense Total Fund: 111- Impact Mitigation Fee Surplus (Deficit) Fund: 206 - Bond Redemption Fund Revenue 00 - Revenues 298,000.00 1,397,000.00 460.58 460.58-1,396,539.42 99.97% Revenue Total: 298,000.00 1,397,000.00 460.58 460.58-1,396,539.42 99.97% 1,103,300.00 2,495,300.00 7,899.75 7,899.75 2,487,400.25 99.68% 1,103,300.00 2,495,300.00 7,899.75 7,899.75 2,487,400.25 99.68% 4,104,600.00 2,712,600.00 608,964.12 608,964.12-2,103,635.88 77.55% Expense 06 - Miscellaneous 298,000.00 995,410.00 0.00 0.00 995,410.00 100.00% Expense Total: 298,000.00 995,410.00 0.00 0.00 995,410.00 100.00% Fund: 206 - Bond Redemption Fund Surplus (Deficit): 0.00 401,590.00 460.58 460.58 -401,129.42 99.89% Fund: 411- Water Operating Revenue 00 - Revenues 3,949,000.00 3,949,000.00 296,199.59 296,199.59 -3,652,800.41 92.50% Revenue Total: 3,949,000.00 3,949,000.00 296,199.59 296,199.59 -3,652,800.41 92.50% Expense 05 - Public Works 3,138,532.00 3,891,412.00 127,516.17 127,516.17 3,763,895.83 96.72% 06 - Miscellaneous 555,800.00 1,578,445.00 2,117.39 2,117.39 1,576,327.61 99.87% Expense Total: 3,694,332.00 5,469,857.00 129,633.56 129,633.56 5,340,223.44 97.63% Fund: 411- Water Operating Surplus (Deficit): 254,668.00 -1,520,857.00 166,566.03 166,566.03 1,687,423.03 110.95% Fund: 412 - Water Stabilization Revenue 00 - Revenues 0.00 100,000.00 4,683.03 4,683.03 -95,316.97 95.32% Revenue Total: 0.00 100,000.00 4,683.03 4,683.03 -95,316.97 95.32% Fund: 412 - Water Stabilization Total: 0.00 100,000.00 4,683.03 4,683.03-95,316.97 95.32% Fund: 414 - Water Debt Service Revenue 00 - Revenues 939,200.00 2,400,670.00 0.00 0.00-2,400,670.00 100.00% Revenue Total: 939,200.00 2,400,670.00 0.00 0.00-2,400,670.00 100.00% Expense 06 - Miscellaneous 939,200.00 1,144,970.00 0.00 0.00 1,144,970.00 100.00% Expense Total: 939,200.00 1,144,970.00 0.00 0.00 1,144,970.00 100.00% Fund: 414 - Water Debt Service Surplus (Deficit): 0.00 1,255,700.00 0.00 0.00-1,255,700.00 100.00% 2/20/2024 1:38:12 PM Page 14 of 17 Budget Report For Fiscal: 2024 Period Ending: 01/31/2024 Variance Original Current Period Fiscal Favorable Percent Departmen... Total Budget Total Budget Activity Activity (Unfavorable) Remaining Fund: 421- Storm Drainage Utility Revenue 00 - Revenues 1,745,000.00 1,745,000.00 184,657.88 184,657.88 -1,560,342.12 89.42% Revenue Total: 1,745,000.00 1,745,000.00 184,657.88 184,657.88 -1,560,342.12 89.42% Expense 05 - Public Works 1,819,352.00 1,850,002.00 61,299.92 61,299.92 1,788,702.08 96.69% 06 - Miscellaneous 277,100.00 320,150.00 8,262.66 8,262.66 311,887.34 97.42% Expense Total: 2,096,452.00 2,170,152.00 69,562.58 69,562.58 2,100,589.42 96.79% Fund: 421- Storm Drainage Utility Surplus (Deficit): -351,452.00 -425,152.00 115,095.30 115,095.30 540,247.30 127.07% Fund: 422 - Storm Drainage Stabilization Revenue 00 - Revenues 0.00 0.00 2,631.12 2,631.12 2,631.12 0.00% Revenue Total: 0.00 0.00 2,631.12 2,631.12 2,631.12 0.00% Fund: 422 - Storm Drainage Stabilization Total: 0.00 0.00 2,631.12 2,631.12 2,631.12 0.00% Fund: 424 - Storm Drainage Debt Service Revenue 00 - Revenues 177,100.00 220,150.00 8,262.66 8,262.66 -211,887.34 96.25% Revenue Total: 177,100.00 220,150.00 8,262.66 8,262.66 -211,887.34 96.25% Expense 06 - Miscellaneous 177,100.00 220,150.00 8,262.66 8,262.66 211,887.34 96.25% Expense Total: 177,100.00 220,150.00 8,262.66 8,262.66 211,887.34 96.25% Fund: 424 - Storm Drainage Debt Service Surplus (Deficit): 0.00 0.00 0.00 0.00 0.00 0.00% Fund: 431- Sewer Operating Revenue 00 - Revenues 5,701,000.00 5,701,000.00 500,392.76 500,392.76 -5,200,607.24 91.22% Revenue Total: 5,701,000.00 5,701,000.00 500,392.76 500,392.76 -5,200,607.24 91.22% Expense 05 - Public Works 4,889,732.00 5,389,012.00 274,443.22 274,443.22 5,114,568.78 94.91% 06 - Miscellaneous 709,900.00 1,154,720.00 1,730.80 1,730.80 1,152,989.20 99.85% Expense Total: 5,599,632.00 6,543,732.00 276,174.02 276,174.02 6,267,557.98 95.78% Fund: 431- Sewer Operating Surplus (Deficit): 101,368.00 -842,732.00 224,218.74 224,218.74 1,066,950.74 126.61% Fund: 432 - Sewer Stabilization Revenue 00 - Revenues 0.00 100,000.00 7,008.37 7,008.37 -92,991.63 92.99% Revenue Total: 0.00 100,000.00 7,008.37 7,008.37 -92,991.63 92.99% Fund: 432 - Sewer Stabilization Total: 0.00 100,000.00 7,008.37 7,008.37 -92,991.63 92.99% Fund: 434 - Sewer Debt Service Revenue 00 - Revenues 678,900.00 1,067,720.00 3,974.78 3,974.78 -1,063,745.22 99.63% Revenue Total: 678,900.00 1,067,720.00 3,974.78 3,974.78 -1,063,745.22 99.63% Expense 06 - Miscellaneous 403,900.00 465,970.00 0.00 0.00 465,970.00 100.00% Expense Total: 403,900.00 465,970.00 0.00 0.00 465,970.00 100.00% Fund: 434 - Sewer Debt Service Surplus (Deficit): 275,000.00 601,750.00 3,974.78 3,974.78 -597,775.22 99.34% Fund: 500 - Equipment Rental and Revolving Revenue 00 - Revenues 1,309,800.00 3,378,200.00 68,133.64 68,133.64 -3,310,066.36 97.98% Revenue Total: 1,309,800.00 3,378,200.00 68,133.64 68,133.64 -3,310,066.36 97.98% Expense 10 - ER&R 801,600.00 1,165,100.00 29,507.73 29,507.73 1,135,592.27 97.47% 2/20/2024 1:38:12 PM Page 15 of 17 Budget Report For Fiscal: 2024 Period Ending: 01/31/2024 Variance Original Current Period Fiscal Favorable Percent Departmen... Total Budget Total Budget Activity Activity (Unfavorable) Remaining Expense Total: 801,600.00 1,165,100.00 29,507.73 29,507.73 1,135,592.27 97.47% Fund: 500 - Equipment Rental and Revolving Surplus (Deficit): 508,200.00 2,213,100.00 38,625.91 38,625.91 -2,174,474.09 98.25% Report Surplus (Deficit): 2,814,204.00 -1,870,372.00 2,092,491.66 2,092,491.66 3,962,863.66 211.88% 2/20/2024 1:38:12 PM Page 16 of 17 CAPITAL BUDGET Account Typ... Fund: 302 - Capital Construction Revenue Expense Fund: 302 - Capital Construction Surplus (Deficit) Fund: 304 - Street Capital Projects Original Current Total Budget Total Budget Budget Report Group Summary For Fiscal: 2024 Period Ending: 01/31/2024 Variance Period Fiscal Favorable Percent Activity Activity (Unfavorable) Remaining 370,000.00 2,650,000.00 41,097.64 41,097.64-2,608,902.36 98.45% 370,000.00 2,650,000.00 4,624.85 4,624.85 2,645,375.15 99.83% 0.00 0.00 36,472.79 36,472.79 36,472.79 0.00% Revenue 220,000.00 2,867,000.00 165,818.26 165,818.26 -2,701,181.74 94.22% Expense 290,000.00 2,592,500.00 6,982.18 6,982.18 2,585,517.82 99.73% Fund: 304 - Street Capital Projects Surplus (Deficit): -70,000.00 274,500.00 158,836.08 158,836.08 -115,663.92 42.14% Fund: 413 - Water Capital Revenue 2,232,700.00 2,195,700.00 105,234.28 105,234.28 -2,090,465.72 95.21% Expense 883,400.00 2,122,225.00 4,152.42 4,152.42 2,118,072.58 99.80% Fund: 413 - Water Capital Surplus (Deficit): 1,349,300.00 73,475.00 101,081.86 101,081.86 27,606.86 -37.57% Fund: 423 - Storm Drainage Capital Facil Revenue 100,000.00 100,000.00 929.59 929.59 -99,070.41 99.07% Expense 100,000.00 100,000.00 0.00 0.00 100,000.00 100.00% Fund: 423 - Storm Drainage Capital Facil Surplus (Deficit): 0.00 0.00 929.59 929.59 929.59 0.00% Fund: 433 - Sewer Capital Revenue 3,491,500.00 4,491,500.00 389,803.00 389,803.00-4,101,697.00 91.32% Expense 369,000.00 2,265,000.00 3,461.60 3,461.60 2,261,538.40 99.85% Fund: 433 - Sewer Capital Surplus (Deficit): 3,122,500.00 2,226,500.00 386,341.40 386,341.40-1,840,158.60 82.65% Report Surplus (Deficit): 4,401,800.00 2,574,475.00 683,661.72 683,661.72-1,890,813.28 73.44% 2/20/2024 1:48:00 PM Page 1 of 2 Detail Report CASH & INVESTMENT Date Range: 01/01/2024 - 01/31/2024 Fund Summary Fund Beginning Balance Total Activity Ending Balance 001- Current Expense 17,340,466.27 654,192.97 17,994,659.24 002 - City Street Fund 3,973,262.66 62,769.15 4,036,031.81 003 - Stabilization Fund 3,071,749.84 14,031.15 3,085,780.99 103 - Criminal Justice 752,330.57 53,763.84 806,094.41 104 - Special Investigative Unit 100,905.54 316.85 101,222.39 107 - Community Events 393,879.33 10,960.22 404,839.55 108 - Paths & Trails 15,810.93 169.47 15,980.40 109 - Real Estate Excise Tax 6,065,090.10 124,060.03 6,189,150.13 111- Impact Mitigation Fee 8,124,687.21 608,964.12 8,733,651.33 206 - Bond Redemption Fund 100,014.85 460.58 100,475.43 302 - Capital Construction 7,950,685.54 36,472.79 7,987,158.33 304 - Street Capital Projects 2,154,009.24 158,836.08 2,312,845.32 401- Water -Sewer Utilities 0.00 0.00 0.00 403 - Water -Sewer Cumulative Reserve 0.00 0.00 0.00 411- Water Operating 4,444,997.90 166,566.03 4,611,563.93 412 - Water Stabilization 1,016,948.71 4,683.03 1,021,631.74 413 - Water Capital 8,258,227.27 101,081.86 8,359,309.13 414 - Water Debt Service 0.00 0.00 0.00 421- Storm Drainage Utility 1,784,151.08 115,095.30 1,899,246.38 422 - Storm Drainage Stabilization 571,363.28 2,631.12 573,994.40 423 - Storm Drainage Capital Facil 201,866.02 929.59 202,795.61 424 - Storm Drainage Debt Service 0.00 0.00 0.00 431- Sewer Operating 7,766,166.23 224,218.74 7,990,384.97 432 - Sewer Stabilization 1,521,908.99 7,008.37 1,528,917.36 433 - Sewer Capital 7,446,695.94 386,341.40 7,833,037.34 434 - Sewer Debt Service 863,148.28 3,974.78 867,123.06 500 - Equipment Rental and Revolving 3,784,187.48 38,625.91 3,822,813.39 631- Trust and Agency 27.00 7,418.41 7,445.41 632 - Wastewater Treatment Facil Fee 6,411,758.15 178,685.94 6,590,444.09 Grand Total: 94,114,338.41 2,962,257.73 97,076,596.14 2/20/2024 1:00:58 PM Page 5 of 5 ORCHARD ........... ..... . .. . ......... Finance Co itte Transportation Funding 101 0202002 Note: This is intended to illustrate the project estimates and potential fur Discussion Overview Cities 101- Streets Et the City Transportation System https://youtu.be/bo,otGEBWNf8 Local Transportation Funding Options Motor Vehicle Fuel Tax Transportation Benefit District Fee Transportation Benefit District Sales Tax I Transportation Impact Fee's Real Estate Excise Tax (REET) Other Sources (Property Tax, Sales Tax) Motor Vehicle Fuel Tax TIMM Gas taxes in Washington are assessed in cents per gallon, which means that MVFT distributions depend on the number of gallons sold, not the price per gallon Quick Summary Distrlbuted to all cities and towns on a per capita basis_ Total distributions depend on arnount of gas tares collected statewide. Revenues are restrlcted and must be used far Street.5, roads and highways_ Citles must use at Jeast D.42 for pedestrian, equestrian, or bicycle trails, unless such amount would be 500 or less per year_ RCW: 46,68.080, 4a6.68.110 Budget Amount 2023: $285,000 • Budget Amount 2024: $285,000 • Pavement Preservation (O&M) Actual: $302,390 ' Actual YTD): $22y916 Transportation Benefit District Fee ($20) Et Tax (0.001%) if" Any city or town may form a transportation benefit district (TBD) under chapter 36.73 RCW to raise revenues for transportation purposes. The TBD vehicle license fee may be imposed in addition to the TBD sales tax if desire , several jurisdictions have imposed both concurrently. It is worth noting that these tw options are imposed upon different sources - TBD vehicle license fees are paid solely residents who own vehicles, while TBD sales taxes are paid by anyone who makes reta 1 purchases within the city. The amount of revenue a city can generate with each option vary depending on the rates imposed, the local economy, and the number of registered Ouick Summary Any city that has establlshed a transportailan benefit district (TBD) may Irnpose a non -gated vehicle Ilcense fee up to $5D or a voted vehicle license fee up to $100. Revenues must be used for specified trans po rtatlon projects_ RCW: 82.BD.140 • Budget Amount 2023: $225,000 • Budget Amount 2024: $248,294 0 Pavement Preservation (OEM) Actual: $248,294 Actual (YTD): $18,008 and revenue i city will also vehicles Transportation Benefit District (TBD) Sales Tax: A tax on all sales within the jurisdiction's boundaries dedicated for transportation purposes Example 1: $10 purchase the TBD Sales Tax would be $0.01 Example 2: $100 purchase the TBD Sales Tax would be $0.10 • New legislation: Effective July 1, 2022, Sec. 406-407 of ESSB 5974 increases thf maximum transportation benefit district (TBD) sales tax authority from 0.2% tc and authorizes indefinite renewals of up to 10 years with voter approval. In ad for TBDs that include all of the territory within the boundaries of the jurisdictic that established the TBD, the legislation authorizes the governing board to imp 0.1% of the sales tax councilmanically (without voter approval) up to 10 years time. • 2023 Target: $830,763 2024 Target: $830,763 Actual: $748,940 Actual(YTD): $74,031 • Capital Project: Bethel Road Phase 1 Phasing Strategy Phase 1: Bethel Road-Salmonberry Rd to Blueberry Rd • Construct two roundabouts on Bethel Road at both Salmonberry Road and Blueberry Road. While right of -way should be acquired to accommodate the full build -out roundabout design for the 2040 horizon year volumes, the design and number of circulating lanes required to support opening day volumes will be determined during the design phase. At Salmonberry Road, our analysis identified a single -lane roundabout as an interim design. However, a two-lane roundabout with two-lane approaches southbound and northbound on Bethel Road is expected to be required to meet LOS standards in 2040. At Blueberry Road, our analysis did not identify an interim design and a single -lane roundabout is expected to meet LOS standards in 2040. • Construct the Bethel Road segment between Salmonberry Road and Blueberry to the Bethel Road - Typical Section A specifications including sidewalk, bioretention swale, curb and gutter, bike lane, one travel lane in each direction, and a raised center median. • In order to adequately accommodate detour traffic during construction, Ramsey Road between Sedgwick Road and Salmonberry Road will need to be improved to meet City standards prior to implementation of Phase 1, including resolving some existing right-of- way issues. A preliminary cost for this improvement has been included in the estimate for Phase 1. Figure 10: Phasing Strategy Diagram 4 ,9 • Transportation Impact Fee's Impact fees are one-time charges assessed by a local government against real estate developers to help pay for new or expanded pul facilities and infrastructure that will directly address the increases demand for services created by new development. Quick Summery Fee charged to developers to rnitig ate the Impacts on Infrastructure and capital facilities because of Increased demand resulting from new development_ Revenues are restricted and may only be used for transportatlen_ May be imposed by any city, but typically Impact fees are assessed under the Growth Management Act rather than LTA. Does not require voter approval. RCW*. Chapter 39.92 RCW Budget Amount 2023: $2,052,400 Actual: $2Y 11 5Y700 Budget Amount 2024: $2,283,100 Actual(YTD): $255,960 • Capital Projects Real Estate Excise Tax (REET) The two main REET options for cities and towns are: • REET 1 ("first quarter percent") - Any city or town may levy a J5% real estate excise tax primarily for capital projects and limited main enance. • REET 2 ("second quarter percent") - Additional 0.25% real tax primarily for capital projects and limited maintenance, be imposed by cities that are fully planning under GMA. REET 1 Budget Amount 2023: $900,000 Actual: $1,056,055 REET 2 Budget Amount 2023: $900, 000 Actual: $1, 056, 055 REET 1 Budget Amount 2024: $800,000 Actual(YTD): $53,660 REET 2 Budget Amount 2024: $800,000 Actual(YTD): $53,660 Capital Projects estat excise but m y only Other Sources Property Tax: Fund 002-35% Budgeted Operations, Main ten ance, Preser ation Sales Tax: One-time Transfers to support O,M Et P Grants State Transportation Funding Options (Grant) • iransportation improvement isoara 11 ins): Overview or i irs Grant Programs — Includes urban pr gr small city programs, and "other opportunities" that may have specialized eligibility requiremen s. also conduct funding workshops throughout the state. • WSDOT: Support for Local Programs — Includes state grant programs as well as federal pass-thro g programs and federal managed programs, plus guidance, training, and technical assistance Federal Funding At the federal level, the Federal Highway Administration (FHWA) implements transportation programs and offers policy guidance. For more information, see: • WSuui: Support for Local Programs — Includes federal pass -through programs and federal managec programs. • FHWA: Legislation, Regulations and Guidance — Information on federal transportation fundi g bills. Fund 002 City Street- Operations 2023-2024 Amended Fund: 002 -City Street Fund Biennial Budget Beginning Fund Balance $ 2,771,168 Revenue $ 5,610,532 Expense $ 6,148,192 Ending Fund Balance $ 2,233,508 Road Way (Preservation) Street Lighting Traffic Control Devices Roadside Snow Et Ice Control Fund 304 Street Capital Construction TIP 1.1 Bay Street Pathway ROW $1,152,285 TIP 1.13 Lippert -Sidewalk Improvements TIP 1.14 Sidney Safe Route to School TIP 1.15 Pottery Non -Motorized TIP 1.16 SR166 -Street TIP 1.18 Tremont Phase 2 Et 3 TIP 1.19 SB 160 2A TIP 1.2 Bay Street Pathway TIP 1.3 Bay Street Situational Study TIP 1.5A Old Clifton Road TIP 1.7 Bethel Lincoln RAB TIP 1.8 Et 1.9 Salmon Et Blueberry Golden Street Highway Safety Street Light Improvements On Call ROW Surveying Et Service Salary Et Benefits 304-Total Expenses $2541400 $235,000 $825, 000 $1,300,000 $7321000 $600, 000 $ 5, 000, 000 $562,000 $150, 000 $2,552,400 $712,135 $7, 500 $220, 000 $95,000 $41,990 $14,639,710 Questions TIP 1.15 Pottery Ave Non -Motorized Improvements - $2.188 million: Project is addressing the sidewalk gap from Sunset to Clay near Tremont. Road diet and road widening to provide bikeable shoulders and sidewalk improvements. Safety enhancement at Pottery Lippert Intersection and School Crossing. ROW -Consulting Services ROW -Purchases Design (Sal Et Ben) Construction (Sidewalk Et Pavement) Sched A Construction (Storm Drainage) Sched A Construction (Water Main) Sched B Construction (Sewer) Sched B Total $55,000 $80, 000 $40, 000 $1,017,000 dra6im $51,200 $0 $28, 500 $0 $50,000 $0 $237,000 $0 $709,000 $0 $ 2,188, 000 $ 79, 700 $2,108,300 Funding Sources Current Project Budget Available Budget New Project Amendment Budget Fund 001 /002 to 304 $0 $0 $136, 000 $136, 000 Fund 304-WSDOT TIB Grant $650,000 $6501000 $0 $650,000 Fund 111-Transportation Impact (TIF) 144,050 $641350 $271,950 $416,000 Fund 304-Street Construction Balance $407000 $401000 $0 $40,000 Fund 411 to 413 -Water Capital $100, 000 $100, 000 $137, 000 $237, 000 Fund 433-Sewer Capital 1 $500,000 1 $500,000 1 $209,000 1 $709,000 Total 1 $1,434,050 1 $1,354,350 1 $753,950 1 $2,188,000 ORCHARD ........... ..... . .. . ......... r D D rapital Purchases 02*20e2024 4 Note: This is intended to illustrate the project estimates and potential fundin Discussion Overview EREtR Budget and Purchase for Police Vehicles 2023-2024 Biennial Budget Original budget 9 Vehicles $6031000 Amendment 2 additional vehicles $142,000 Total for Budget Updated cost Budget Shortfall $745YO00 $8469847 $101)847 ER&tR Fund Police Criminal Justice 2023 Budgeted Revenue: Budgeted Fund 103 -Criminal Justice $391,074 2024 Ending Fund Balance: Budgeted Fund 103 -Criminal Justice $155,800 Use about $10k from Fund Balance Activity $485,899 Over/under +, $94825 COMMONSTREET February 12, 2024 K. Chris Hammer, PE, PMP City Engineer 216 Prospect Street Port Orchard, WA 98366 539 Broadway Oo Tacoma, WA 98402 503 747 9961 206 714 9041 info@csrow.com www.csrow.com Re: Scope and Fee Proposal —TASK ORDER Bethel Corridor Plan: Sedgewick Rd SR160 Parcel 1-028 Remnant Thank you for the opportunity to prepare this scope and budget estimate for the City. It is our understanding that Commonstreet is providing turn -key right of way services for the acquisition of a remnant of parcel 1-028. Scope Summary and Project Understanding The figures provided herein are based upon the email dated January 17, 2024. It is assumed that one partial acquisition of a remnant of Parcel 1-028 abutting Sedgewick/SR 160 is needed. At this stage, it also assumed no personal property relocations or displacements will be required and that no design changes will occur after the initial appraisal assignment. Work shall be completed within the guidelines of the Federal Uniform RelocationAssistance and Real Property Acquisitions Policies Act (URA), Washington State Department of7ransportation (WSDOT) Local Agency Guideline Manual, the City's approved Right of Way Procedures and all applicable state laws. It is further assumed no WSDOT ROW Certification will be required and that all ROW activities will be conducted so that aspects of the project remain eligible for federal funding, to include: • Use of Administrative Offer Summaries or appraisal or appraisal review services, LAG 25.5. • Offers to be made under threat of eminent domain, LAG 25.44-.45, LAG 25.93. It is assumed that subconsultant survey services will be required to describe the partial acquisition and that the value of the acquisition exceeds $25,000 and/or presents a complex valuation problem. Scope of Services Task 1.0 — Project Management • Prepare for and lead monthly Right of Way Task Force Meetings; • Respond to inquiries and needs identified by your Agency and/or Project Stakeholders; • Provide written and oral status updates on parcel acquisitions and relocations; • Provide oversight to all aspects of the right of way program including title, negotiations, relocations, closing preparations and certification tasks; • Review Agency's approved Right of Way Procedures; • Develop and execute the Right of Way program in compliance with Uniform Act and WSDOT requirements; aft COMMONSTREET CONSULTING Page 2 • Maintain quality control/quality assurance protocols in the execution of the right of way task; • Substitute Commonstreet staff with different classifications with same or lower rate where appropriate; • Management of Title, Escrow, Survey and Appraisal sub -consultants; and • Coordinate appraisal and appraisal review tasks/prepare Appraisal Waivers -Administrative Offer Summaries (AOS) as needed. Task 2.0 - Title Review and Conveyance Documents Drafts • Create state and federal compliant project files for each parcel; • Review title reports for each parcel and recommend clearance/acceptance of each exception; • Request the City order new and/or updates to existing title commitments; • Once a parcel's title interest has been reviewed, identify method of clearance per Agency direction; Prepare documents needed to clear liens or encumbrances; Prepare Determinations of Just Compensation, Purchase and Sale Agreements, offer letters and all documents needed to convey temporary and/or permanent property interests; Review City -prepared templates for State and Federal compliance. Task 3.0 - Appraisal and Appraisal Review Coordination • Prepare Appraisal Waivers -Administrative Offer Summaries (AOS) where allowable, or • Coordinate appraisal task with any subconsultants as necessary. Provide all documentation required to complete appraisal reports and integrate findings into offer packages; • Review appraisal/valuation and appraisal review reports for each affected parcel; • Review design elements with City's design team. Task 4.0 - Negotiations, Administrative Settlements and QA/QC • Review appraisal/valuation reports for each affected parcel, review design elements with City's design team; • Contact property owners, present offers, negotiation compensation and settlement terms. • As needed, prepare Administrative Justifications compliant with Agency and WSDOT requirements; • Facilitate execution of offer package/conveyance documents, deliver executed offer package to Agency for payment processing and recording. • As needed, prepare Administrative Justifications compliant with Agency and WSDOT requirements; • Facilitate execution of offer package/conveyance documents, deliver executed offer package to Agency for payment processing and recording. Task 5.0 — Escrow/Payment Processing and Recording • Where escrow is utilized, provide escrow instructions as to payment and closing terms; • Provide City with property owner executed payment vouchers; • Facilitate recording of all conveyance documents; • Secure proof of payment. Task 6.0 - File Close Out. • Prepare finalzed acquisition files (electronic and/or hard copy) to the agency. SCOPE AND FEE PROPOSAL 1124th Ave SE and Gleason ST aft COMMONSTREET CONSULTING Page 3 SCOPE AND FEE TABLE SUMMARY Task 1.0 - Project Management Project Manager @ $185.00 @ 35 hrs $6,475 Tasks include client and stakeholder communications; leading Senior Project Manager @ $208.00 @ 5 hrs $1,040 of task force meetings, risk management tasks affecting the right of way program and schedule and budget controls. Sub -consultant survey legal descriptions $5,100 Manage sub -consultant survey process. Task 2.0 - Title Review and Conveyance Documents Drafts* Senior Right of Way Agent @ $155.00/hr @ $930 Tasks include requesting City order reports, reviewing title 12 hrs reports and supplementals for all affected parcels, establishing ownership data, identifying clearance items, Senior Project Support Specialist @ drafting all conveyance documents and vouchers, and $155/hr@ 6 hrs $930 clearing title encumbrances, as needed. Task 3.0 - Appraisal and Appraisal Review Coordination** One (1) Narrative Appraisal $6,000 Tasks include preparing Administrative Offer Summary (AOS) or coordinating appraisal task and any subconsultants, as One (1) Review Appraisal $1,500 necessary; providing all documentation required to complete appraisal reports and integrating findings into offer packages. Task 4.0 - Negotiations, Administrative Settlements, QA/QC Senior Right of Way Agent @ $155.00/hr @ $12,710 Includes project file set-up, reviewing of all appraisal and 82 hrs compensation data, delivering offer package and negotiating Senior Project Support Specialist @ settlements. $155/hr@ 6 hrs $930 Task 5.0 — Escrow/Payment Processing and Recording Senior Right of Way Agent @ $155.00/hr @ $620 Includes either setting up client escrow account or facilitating 4 hrs execution of all conveyance documents, payment vouchers and closing data along with recording of conveyance documents and closing of acquisition file. Task 6.0-File Close Out Senior Right of Way Agent @ $155.00/hr @ $440 Includes either setting up client escrow account or facilitating estimated 8 hrs execution of all conveyance documents, payment vouchers and closing data along with recording of conveyance documents and closing of acquisition file. Sub Total $36,675 Other Direct Costs (ODC's) Mailing, Copying, Printing $120 Mileage at Allowed Rate $460 Grand Total - Services and ODC's $36,855 * Assumes all title reports and escrow fees will be born directly by the City and no design changes will affect the appraisal assignment. **Appraisal fees would be based on fee schedule of available appraisers at the time of the assignment. SCOPE AND FEE PROPOSAL 1124th Ave SE and Gleason ST CITY OF PORT ORCHARD aw,; Department of Community Development auk,; 216 Prospect Street Port Orchard, WA 98366 Phone (360) 874-5533 'Fax (360) 876-498o Memorandum To: Mayor Putaansuu and Members of the City Council From: Nicholas Bond and Denis Ryan Date: January 26, 2024 Re: Need for a Real Estate Specialist Position with the City At Issue: The City has historically relied on consultants to perform real estate acquisition services on an as needed basis. Due to growth in the city and a pipeline of infrastructure projects that will require real estate acquisition services, the city should evaluate whether a full-time real estate acquisition specialist is needed rather than relying solely on consultants. The case for such a position should be evaluated by looking at historic expenditures on real estate acquisition consultants, looking at the pipeline of projects for which real estate services will be required, and by evaluating other synergies that would be created by having this position in house. Historic Expenditures: The city has recently been using 2 firms to provide real estate services. Tierra ROW has been contracted to perform work on the Bay Street Pedestrian Pathway project and has been working on this project for several years. Common Street was more recently hired as an on -call ROW consultant to hire more minor acquisition projects as they emerge. In 2023, the City's expenditures for Tierra ROW Services and Common Street ROW Services were as follows: Tierra: $116,487 Common Street: $50,836 Pipeline Projects: The city has significant ROW consulting needs beginning in 2024, in addition to ongoing work carrying over from previous years. Projects are as follows: The Bethel Sedgwick Corridor projects: Bethel Phase 1 design work is under way and later in 2024, the city will begin work on ROW acquisition. There are at least 44 properties that will need to be acquired for this project to be constructed. Recently city staff learned that construction for this project will likely be delayed until 2027 due the amount of time that it will take to fully acquired the ROW needed for this project. The City's design contract for this project includes $133,328 in budget for a ROW agent. This contract could be revised such that this acquisition be handled in-house by a new Real Estate Specialist. Page 1 of 3 In addition, The Home Depot project on Bethel is at risk because they don't want to build a store until Bethel Phase 1 has been completed. Hiring an in-house ROW agent would potentially accelerate these acquisitions compared to relying on consultants who are perpetually understaffed. Looking beyond the acquisitions for phase 1 to be completed in 2024 and 2025, phases 2-5 of this project will require the acquisition of at least 127 additional properties. There are 5 of these future phase properties in the budget for acquisition in 2024. This work could be performed in- house if we had the personnel. Old Clifton Road Projects: The City has projects planned on Old Clifton Road and has contractual commitments in the McCormick Woods Transportation agreement to acquire ROW for mitigation projects to be constructed by McCormick Communities. This work will be subbed to a consultant in the absence of an in-house position for this work. Pottery Avenue Project: The city has a grant to improve Pottery between Tremont and SR-16. The City's consultant is currently working to acquire the ROW needed for this project. This work could have otherwise been performed in house. Bay Street Pedestrian Pathway: The City's consultant continues to work to wrap up ROW acquisition on this project. Due to this project being in progress, the city would not want to assign this work to someone new, but in the future projects like this could be handled in-house. Bay Street Sewer Lift Station (Bay Ford): The City needs assistance to acquire the needed property or easement for replacement of this sewer lift station. Parks: The City's Parks plan calls for the acquisition of dozens of properties for parks, recreation, and conservation purposes in the coming years. Moreover, there are numerous grants to acquire parks properties, but the staff resources that would be needed to manage real estate consultants mean that the City isn't able to go after these projects at this time. Waterfront Redevelopment: As Port Orchard continues to implement the downtown master plan, additional real estate negotiations and transactions will be required. Acquisitions for future facilities: The City is currently negotiating the purchase of 730 Prospect Street. This agreement is being handled by the City Attorney but could easily be handled by a real estate specialist at less cost. Other Functions: Development Agreements for Infrastructure: The City has around 20 contracts with developers whereby the developer is to construct infrastructure and provide easements or deeds. These tasks are currently handled by city staff with assistance from the City Attorney. Going forward, a real estate specialist could handle these tasks. DNR Leases: The City holds numerous leases with DNR along the waterfront. Currently, the city attorney is tasked with negotiating changes to these leases including extensions every 5 years. This work could be handled by a real estate specialist. 2 Street Vacations: Street vacations are currently handled by the City Clerk's office. A Real Estate Specialist could potentially assist with street vacations in the future. Surplus Properties: The City has numerous surplus properties that have not been disposed of due to staffing issues in the Clerk's office. A Real Estate Specialist could take the lead in selling city properties that are surplus to the city's needs. Conclusion: The City's Public Works and Community Development Directors agree that there is sufficient real estate work in the City to justify the creation of a Real Estate Specialist Position. It is expected that annual use of the on -call consultant will continue in future years at around $50,000 per year and the city will likely save money and get greater output by relying on in-house personnel as described above. We believe that contract C083-22 could also be revised to remove $133,328 in expenditure on a ROW consultant and instead hire someone to perform this task. There will be sufficient work in the coming years that would normally be sent to a consultant that would keep an in-house real estate specialist busy. 3