CITY OF SNOHOMISH 116 UNION AVENUE · SNOHOMISH, WASHINGTON 98290 · (360) 568-3115 · WWW.SNOHOMISHWA.GOV

NOTICE OF REGULAR MEETING

SNOHOMISH CITY COUNCIL

in the George Gilbertson Boardroom 1601 Avenue D

TUESDAY January 16, 2018 7:00 p.m.

AGENDA Estimated time 7:00 1. CALL TO ORDER

a. Pledge of Allegiance b. Roll Call

2. APPROVE AGENDA contents and order

3. APPROVE MINUTES of the meetings of January 2, 2018

a. Workshop (P.3) b. Regular Meeting (P.7)

7:05 4. CITIZEN COMMENTS - Three minutes allowed for citizen comments on subjects not on the agenda. Three minutes will be allowed for citizen comments during each Public Hearing, Action or Discussion Agenda Item immediately following council questions and before council deliberation. Citizen comments are not allowed under New Business or Consent items.

5. ACTION ITEMS

7:15 a. Council’s Rules and Regulations - PASS Resolution 1371 (P.19)

7:25 b. SET Public Hearing Date for the Street Vacation of the Alley Between Avenues A and B, North of Seventh Street – PASS Resolution 1374 (P.37)

7:35 c. AUTHORIZE Mayor to Sign Agreement for Financial/Permitting Software with Tyler Technologies (P.97)

7:45 d. Interim Ordinance Regarding Sanctioned Drug Injection Sites – ADOPT Ordinance 2344 (P.195)

8:05 e. AUTHORIZE Mayor to Sign Agreement for Second Street Corridor Planning and Design (P.205)

Continued Next Page

City Council Meeting January 16, 2018 1 8:15 6. DISCUSSION ITEM – Community Outreach Officer Position and K-9 Bill of Sale (P.233)

8:25 7. CONSENT ITEMS

a. AUTHORIZE payment of claim warrants #62012 through #62096 in the amount of $924,478.15 issued since the last regular meeting (P.237)

b. AUTHORIZE Mayor to Sign a Letter to the Washington State Department of Health Requesting a 2-year Extension of the City’s 2011 Comprehensive Water System Plan (P.247)

c. CONFIRM Mayor’s Appointment to Planning Commission (P.255)

8:30 8. OTHER BUSINESS/INFORMATION ITEMS

8:35 9. COUNCILMEMBER COMMENTS/LIAISON REPORTS

8:40 10. COUNCIL PRESIDENT’S ITEMS/REPORTS

8:45 11. CITY ADMINISTRATOR’S COMMENTS

8:50 12. MAYOR’S COMMENTS

9:00 13. ADJOURN

NEXT MEETING: Tuesday, February 6, 2018, workshop at 5 p.m., regular meeting at 6 p.m., in the George Gilbertson Boardroom, Snohomish School District Resource Center, 1601 Avenue D.

The City Council Chambers are ADA accessible. Specialized accommodations will be provided with 5 days advanced notice. Contact the City Clerk's Office at 360-568-3115.

This organization is an Equal Opportunity Provider.

City Council Meeting January 16, 2018 2 AGENDA ITEM 3a

Snohomish City Council Workshop Minutes January 2, 2018

1. CALL TO ORDER: Mayor Kartak called the Snohomish City Council workshop to order at 6:00 p.m., Tuesday, January 2, 2018, in the Snohomish School District Resource Service Center, George Gilbertson Boardroom, 1601 Avenue D, Snohomish, Washington.

MAYOR/COUNCILMEMBERS PRESENT STAFF PRESENT Larry Countryman Pat Adams, HR Manager/City Clerk Steve Dana Debbie Burton, Finance Director Karen Guzak Glen Pickus, Planning Director John Kartak, Mayor Steve Schuller, Interim City Administrator Tom Merrill Grant Weed, City Attorney Linda Redmon Jason Sanders Lynn Schilaty

2. DISCUSSION ITEMS:

a. Representative Mark Harmsworth, 44th State Legislative District Update

Mayor Kartak introduced Representative Mark Harmsworth. Representative Harmsworth stated the workshop serves as an opportunity for the Council to communicate important priorities from the City’s perspective and provide direction to him on what he may be able to assist the City in achieving during 2018.

Councilmember Guzak mentioned the Carnegie building project and noted the City is asking for state funding in the amount of $1.9 million. This will be beautiful addition to the City’s downtown. She is happy to have state support.

Councilmember Dana commented on regional transportation and infrastructure issues. He noted the Burlington Northern Railroad’s rail line along the water front and related landslides creates closures for both passenger and freight. He asked about alternative rail routes in East County in order to carry the rail load up from King County. He asked for thoughts related to a regional proposal to create a second rail line as a fall back for the main line.

Councilmember Dana also discussed capital projects related to the Hwy 9 Bridge across the river and the Bickford Avenue across Hwy 9. He would like to review these projects with the state in the future.

Representative Harmsworth is supportive of discussing these projects.

Councilmember Merrill commented there will be a state related study to help address Second Street configuration and traffic congestion through town.

Councilmember Guzak commented draft plans are currently available related to this study.

Mr. Schuller explained the Second Street study will be brought to Council at an upcoming meeting by the engineering team. The study was a $323,000 grant. The City had to provide $2,000. The grant was through Washington State Department of City Council Meeting January 16, 2018 3 AGENDA ITEM 3a

Transportation (WSDOT). The focus was on Second Street which was designed as freeway. There are a lot of issues with pedestrian crossings. The study reviews the entire corridor within the City limits and how it can be improved related to pedestrian safety, businesses and capacity.

Councilmember Guzak noted there will also be aesthetic improvements related to compatibility within the Historic Downtown.

Councilmember Sanders commented Hwy 2 and Hwy 9 are becoming increasingly congested. The City needs to work regionally on addressing these problems. He also spoke to Avenue D congestion. Transportation concerns are major issues.

Councilmember Dana commented when looking at transportation issues, the state should re-consider the study from many years ago related to installing an exit off of Hwy 2 on to Three Lakes Road. This would help mitigate traffic flow through Snohomish. The City will need to look at creative ways to solve these problems.

Mr. Schuller asked when the State would begin to have discussions about another transportation package.

Representative Harmsworth indicated it would be another ten to fifteen years. Transportation is changing so rapidly. He referenced ride shares (Uber) and driverless vehicles, which may result in a major shift in how these issues are handled.

Councilmember Dana believes it’s not too soon to get the discussion started.

Councilmember Dana inquired about state statutes regulating how opioid injection sites are managed. There needs to be leadership from the state in these matters to create common standards.

Representative Harmsworth is not aware of any state statutes at this time.

Councilmember Merrill asked how the state can help with addiction and homelessness. The problem in our state is bigger than safe injection sites.

Representative Harmsworth noted the City can also adopt local policies surrounding these public health issues.

Councilmember Guzak noted the City partners with Snohomish County to help with homelessness and addiction.

Attorney Weed noted there are an array of different ordinances on the books to help address some of these issues, such as public nuisance, trespass and public disturbance, but none of these ordinances deal directly with homelessness.

Councilmember Redmon noted there are not a lot of resources available in town.

Mayor Kartak has seen an outreach aspect with the Snohomish County Office of Neighborhoods Unit. They are available and do come into the City to assist and provide resources to the homeless population. However, police cannot be the only solution.

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Councilmember Sanders commented it will take a number of resources coming together to address these complicated regional issues.

Councilmember Guzak mentioned that Everett is taking the lead in addressing the homelessness problem and has implemented a program called “Housing First.” The program offers affordable housing for individuals experiencing homelessness, and then provides services and connections to community-based support to help keep people from returning to homelessness. The City of Snohomish partners with Snohomish County and the Alliance for Housing Affordability (AHA). Housing for low income people and homelessness is a regional problem.

Mayor Kartak commented that Everett and Granite Falls have a Family Center, which is an organizational center where community services are offered and coordinated so there are no overlaps or gaps.

Councilmember Schilaty is interested to know what the state is doing to urge the medical community to review their prescribing methods and implement a regional database to help control doctor shopping for pain killers.

Representative Harmsworth noted the state is reviewing current statutes related to the prescribing of opiates.

Councilmembers further discussed with Representative Harmsworth additional issues of regional concern related to transportation, homelessness and addiction.

Ms. Burton appreciates what Representative Harmsworth has done to assist in funding statewide tourism.

b. Open Public Meetings Act (OPMA) and Public Records Act (PRA) Highlights

City Attorney Weed stated he would like to focus on the main aspects of the OPMA and PRA. He understands most Councilmembers have already completed the required comprehensive training. This time has been scheduled to allow Councilmembers to have questions answered and to provide additional emphasis on important issues related to the OPMA and PRA.

3. ADJOURN at 7:00 p.m.

APPROVED this 16th day of January 2018

CITY OF SNOHOMISH ATTEST:

______John Kartak, Mayor Pat Adams, City Clerk

City Council Meeting January 16, 2018 5

THIS PAGE LEFT BLANK INTENTIONALLY

City Council Meeting January 16, 2018 6 AGENDA ITEM 3b

Snohomish City Council Meeting Minutes January 2, 2018

1. CALL TO ORDER: Mayor Kartak called the Snohomish City Council meeting to order at 7:00 p.m., Tuesday, January 2, 2018 in the Snohomish School District Resource Service Center, George Gilbertson Boardroom, 1601 Avenue D, Snohomish, Washington.

MAYOR/COUNCILMEMBERS PRESENT STAFF PRESENT Larry Countryman Pat Adams, HR Manager/City Clerk Steve Dana Debbie Burton, Finance Director Karen Guzak Glen Pickus, Planning Director John Kartak, Mayor Keith Rogers, Police Chief Tom Merrill Steve Schuller, Interim City Administrator Linda Redmon Grant Weed, City Attorney Jason Sanders Lynn Schilaty

2. APPROVE AGENDA contents and order:

MOTION by Guzak, second by Schilaty to approve the agenda as presented. The motion passed unanimously (7-0).

3. APPROVE MINUTES of the December 5, 2017 regular meeting, and the December 12, 2017 Boards and Commissions Appreciation Dinner.

MOTION by Guzak, second by Redmon to approve the minutes of the regular meeting and the Boards and Commissions Appreciation Dinner. The motion passed unanimously (7-0).

4. CITIZEN COMMENTS on items not on the Agenda

Mayor Kartak welcomed the citizens to the meeting and discussed the procedures for providing citizen comments.

Morgan Davis, 206 Avenue I, thanked the Mayor for allowing the 105 Cedar Avenue Foundation to present several viable alternatives to the Council’s August decision to demolish the historic 1968 annex during the upcoming January 11 public meeting concerning the Carnegie Building and Veterans Memorial Projects. He discussed his preferred alternatives for the Carnegie Building site and related financing options.

Mary Curry, emphasized the importance of the City hiring an Economic Development Manager and in keeping local businesses strong, as well as the importance of bridge building. She expressed dissatisfaction with the Mayor’s handling of citizen comments and his raising the issue of the safe injection sites ban, which is a non-issue. She also noted the Mayor’s attendance at other cities City Council meetings with another citizen whom she stated harasses citizens.

Donna Ray, welcomed the new Council and Mayor. She encouraged the Council and the Mayor to keep in the mind the concept of conflict of interest. She referenced the Mayor’s Facebook page supporting a business. She takes issue with the Mayor’s page endorsing a private business with a full page ad. It’s a conflict of interest. City officials should not use their position to promote any one specific business.

Warner Blake, 230 Avenue B, spoke to the many gross and embarrassing errors on the history page of the City’s website, which links to Wikipedia and is hopelessly out of date.

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He asked that City staff please take charge and make corrections to the history page to ensure accuracy.

Bill Betten, read RCW 42.30.010. He thanked the Council in anticipation of a productive upcoming year. He re-capped the process used to change the plan of government to a strong mayor form and congratulated the candidates on their well-run election campaigns. He suggested the Council’s decision making criterion include - considering the negative impacts, positive outcomes and how much will it cost. He also referenced the many projects CPR Snohomish will be involved in as part of the public process.

Arlyce Hopkins, referenced the many bridge building groups holding meetings in town and supports reuniting the community. She finds attacks on Mayor Kartak disturbing. She wants to do what is best for the City of Snohomish.

Carol Roorbuch, summarized Councilmember Guzak’s personal, professional and educational background. She feels very well represented by Councilmember Guzak and looks forward to meeting with the other Councilmembers.

Malcolm Bates, 902 Fourth Street, spoke to his father’s involvement as a member of the Carnegie Foundation. Prior to losing his memory, he commented on his father’s understanding of the importance of honoring the past and creating something of value for the future of the community. The Carnegie Restoration Project is a wonderful plan, it will draw people to the town and is worth the cost. He encouraged citizens to attend the public meeting on January 11.

Brooklyn Stevenson, 226 Avenue C, extended her sincere thanks and appreciation to police and City staff who responded in approximately 90 seconds from her initial call to a large tree that came down in the recent wind storm. In less than an hour, the tree was removed from the street. The City crew and police were professional, fast and kind.

Michael Rohrscheib, 511 Glen, congratulated the new Councilmembers. He commented that Mayor Kartak is supporting a religious group and there needs to a distinct separation of church and state. He asked why the Mayor deleted a number of controversial posts on his personal Facebook page leading up to the election. He asked the Mayor to provide an update on the Five-Year Plan he and Mr. Betten filmed on Facebook.

Mayor Kartak responded he doesn’t have a five-year plan. There has been some discussion regarding Mr. Betten’s five-year plan and it can be taken up with Mr. Betten.

Gary Ferguson, 517 Avenue C, thanked the Mayor and Councilmembers for their willingness to serve. It’s a huge time commitment. He reviewed the past accomplishments of the Council and wants to maintain that momentum. He requested Council continue with the Carnegie and Hal Moe Pool projects. He encouraged development within the Pilchuck District.

Bob McGowan, 120 Long Street, commented on the great job done by the City’s streets crew patching the road between Long and Short Streets. The recycled asphalt worked wonderfully. He suggested the big potholes be backfilled with asphalt. However, the asphalt is now harder that the recycled asphalt and there are huge potholes. He would like the crew to take a look.

Judy Kirkland-Betten, swore before Police Chief Keith Rogers that Mr. Betten had the five- year plan and Mr. John Kartak had nothing to do with the five-year plan.

Lya Badgley, 110 Cedar, welcomed the City’s new representatives. She spoke to bridge building in the community. She would also like to see current City projects move forward in a timely manner to better the community.

City Council Meeting January 16, 2018 8 AGENDA ITEM 3b

Citizen Comments: Closed

5. ACTION ITEM – SELECT Mayor- Council Liaisons to Boards and Commissions and External Agencies.

Interim Administrator Schuller stated every two years there is a process for appointment to Boards and Commissions. Mr. Schuller reviewed the process for Councilmembers to express their interest in serving as liaisons to City Boards and Commissions and external agencies.

Assignments were proposed as follows:

Board/Commission Councilmember Liaison Planning Commission Councilmembers Redmon and Dana Design Review Board Councilmembers Countryman and Guzak Parks and Recreation Board Councilmember Redmon Public Safety Commission Councilmembers Merrill and Redmon Economic Development Committee Councilmembers Merrill and Schilaty Snohomish Chamber of Commerce Councilmember Guzak Historic Downtown Snohomish Councilmember Countryman Snohomish County Tomorrow Councilmember Guzak Community Transit Board Councilmember Merrill

Citizen Comments: None Citizen Comments: Closed

MOTION by Countryman, second by Redmon to APPOINT the above listed Councilmembers as liaisons to the Boards and Commissions and external agencies as shown above. The motion passed unanimously (7-0).

6. DISCUSSION ITEMS:

a. REVIEW of City Priorities

Mr. Schuller stated with six newly elected leaders, the recent change in the City’s plan of government, and the start of the New Year, he wished to briefly review the City’s priorities and services.

The five key City services with 95% of all annual operating costs allocated are as follows:

1) Water Bill (wastewater, drinking water and stormwater), 54% 2) Law Enforcement (Snohomish County Agreement), 24% 3) Transportation, 12% 4) Parks (and events), 6% 5) Planning and Building, 5%

Mr. Schuller explained services are provided as follows:

 Enterprise Funds – Utility Rates;  General Fund Revenue; - Sales Tax, Utility Tax & Property Tax  Voter Approved Levies, e.g. Transportation Benefit District (TBD), 0.2% Sales Tax;  Federal, State & Local Grants; - Utilities, Transportation and Parks City Council Meeting January 16, 2018 9 AGENDA ITEM 3b

 Economic Development;  Growth; and  Organizational Structure (e.g. Finance, City Clerk, Human Resources, IT, Engineering, City Attorney)

An overview of the General Fund Revenue was provided:

$ 9,477,758 2018 Budget Revenue - $1,661,003 Transfers In (e.g. from Water Utilities) $ 7,816,755 Operating Revenue:

$ 4,150,000 Sales Tax (52.5%) $ 1,565,000 Utility Taxes (19.8%) $ 1,224,952 Property Tax (15.5%) $ 259,000 Development & Building Fees (3.3%) $ 7,199,952 Subtotal (92.1%)

All Other Operating Revenue = 7.9%

Mr. Schuller noted economic development and business support were discussed as City priorities, as well as supporting community partnerships, such as the Snohomish Senior Center, Snohomish Boys and Girls Club, Snohomish Senior Housing and the Snohomish Community Food Bank. He described community partner funding as follows:

Aquatic Center - $55,000 (2012 ILA – 30 year initial term) Snohomish Senior Center $12,000 (to $17,000) Public Utilities for Food Bank $ 1,800 Snohomish Health District $19,250 (2017) Alliance for Housing Affordability (AHA) $ 1,800 Economic Alliance Sno County (EASC) $ 4,000 TOTAL $38,850

Councilmember Guzak thanked staff for their presentation and directed Council to their Annual Goals for 2018 which were provided on the dais tonight. She noted the goals also sets the priorities for the Council. It is available on the City’s website and folds into how funding is allocated based on Council priorities.

Citizen Comments: None Citizen Comments: Closed

b. DISCUSS Interim Ordinance Regarding Sanctioned Drug Injection Sites

Planning Director Glen Pickus stated the purpose of the tonight’s agenda item is to discuss the process to address regulating sanctioned drug injection sites. It is not to discuss the pros and cons of sanctioned drug injection sites. Sanctioned drug injection sites, sometimes called a “safe injection site” is a legally sanctioned medically supervised facility designed to reduce nuisance from public drug use and to provide a hygienic and stress-free environment in which individuals are able to consume illicit recreational drugs intravenously.

This has become a topic of conversation because the King County Heroin and Opiate Addiction Task Force issued a final report and recommendations. One of the recommendations is to establish at least two sites, on a pilot program basis, where supervised consumption of drugs is allowed and low-barrier access to on-site health services and screenings, referrals, and other supportive services are provided. The Seattle City Council is very supportive of this and has budgeted funds to help establish

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the facility. However, to date, there are no sanctioned drug injection sites in Washington or in the United States.

Without any zoning regulations addressing sanctioned drug injection sites, it is possible such a facility could be located in Snohomish before adequate regulations are in place. However, staff is unaware of any plans to do so. Also, some people have expressed concerns about the negative impacts to the community that a sanctioned drug injection site within City might create, even with adequate regulations. An interim ordinance would prevent such a facility from being established in the city until appropriate regulations are adopted. Appropriate regulations could include everything from a total ban to allowing the facilities in specified land use designation areas to requiring special permitting such as a Conditional Use Permit.

Title 14 of the Snohomish Municipal Code (SMC), the Land Use Development Code, categorizes land uses and establishes regulations for each type of land use, including in which Land Use Designation Areas the use can occur. Chapter 14.207 SMC, Land Use Tables, breaks land uses into nine general categories. If it is not listed, it is not allowed.

None of the categories list sanctioned drug injection sites as a land use. However, the General Services Land Use Table includes “Miscellaneous Health” as a land use. Because that is such a broad term that is not defined in the SMC, it could be argued that a sanctioned drug injection site is a subset of Miscellaneous Health. A Miscellaneous Health use is permitted outright in the following land use designation areas:

 Commercial  Historic Business District  Business Park  Industrial; and  Mixed Use.

Staff seeks direction on how to proceed. The following are three options the Council may consider:

1) Adopt interim regulations - a moratorium placing a moratorium on any applications for a sanctioned drug injection site for six months, allowing City staff time to research the issue and develop permanent regulations. If the ordinance were brought to Council at the next meeting, a public hearing would need to be held within 60 days. A part of the process would be to develop a work plan for developing permanent regulations. The work plan would constitute some public outreach, and go to the Planning Commission for them to study the issue and hold a public hearing. The Planning Commission would make a recommendation to the City Council. Staff would draft an ordinance consistent with the final recommendation and the City Council would hold a public hearing on the issue. The recommendation could be anything from prohibiting sanctioned drug injection sites from being located in the City, or it could allow them and specify what zones it allowed or it could even include allowing them, but requiring a Conditional Use Permit. The Planning Commission would tackle these options in their process.

2) Skip the interim ordinance step, but direct staff to start the process and take it to the Planning Commission to review and develop permanent regulations. However, if somebody presents an application before regulations are in place, it would be a problem. To date, nobody has approached the City about obtaining an application and the reality is if there is going to be a sanctioned drug injection site within Snohomish County, it will likely not be in Snohomish.

3) Do Nothing.

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Councilmember Merrill inquired about a medical clinic being an allowable land use, and whether the City could reject an application for a medical clinic.

Mr. Pickus responded an applicant could make that argument and he would have to consider it. He could deny it by stating it is not allowed because it’s not a listed use. It could then be appealed by the applicant and go before the Hearing Examiner. The Hearing Examiner hypothetically may disagree and state it is allowed as a medical clinic.

Councilmember Dana questioned whether the distribution of opiates in this context is a federal crime and a basis for denying the permit.

City Attorney Grant Weed stated the application for a particular land use does not necessarily require the Planning Director to consider the issue of legality. If it is an operation that requires a business license, the Snohomish Municipal Code does state a business license can be denied if the activity to be conducted is illegal.

Citizen Comments:

Morgan Davis, 206 Avenue I, expressed there is no compelling imminent need for the Council to approve an emergency moratorium ordinance decision tonight. This issue should be vetted by the Planning Commission, along with consideration given to needle exchange locations, methadone clinics, homeless shelter encampments, and low barrier housing. Methadone clinics are a solution to the needle problem. He recommended the issue be remanded to the Planning Commission.

Bill Betten, requested clarification on Mr. Pickus’ statement that if a safe injection site were to be located in the County, it would go to Everett and not Snohomish.

Mr. Pickus replied his comment was speculative.

Mr. Betten supports an interim six month ban effective immediately on heroin safe injection sites and does not want to follow in Seattle’s footsteps enabling addiction through these destructive sites.

Bob McGowan, 120 Long Street, supports the permanent ban of heroin injection sites. He does not support enabling the drug users. He provided copies to the Council of a study to confirm marijuana is linked to heroin use.

Kari Zimmerman, explained the discussion was not about whether the City wants the safe injection sites, but about logistics. It is enormously unlikely that if a site were to be placed in Snohomish County, it would be in Snohomish. The City needs to think about time spent on what’s most likely a non-issue. Bill Betten brought this up at the December 5 meeting. Mayor Kartak and Mr. Betten are working together to promote their agenda.

Meg Gray, 421 Cypress, proposed the City spend it’s time and resources on developing programs like Monroe’s Community Outreach and Enforcement Team, instead of safe heroin injection sites. The team goes to homeless camps and contacts transients to offer resources for housing and other programs.

Olga Farnam, 11726 187th SE, strongly urged the Council to pass a permanent ban on heroin safe injection sites. Safe injection sites promote criminal activity. Heroin addicts are not productive members of society and curing them is a difficult task. Snohomish doesn’t need these sites in the community.

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Jan Lengenfelder, 222 Avenue A, supports safe injection sites as they provide addicts with a chance to turn their lives around and provides an opportunity for counseling. She speculates these programs will be run by the public health department, and will not come to Snohomish.

Mitch Cornelison, 331 Avenue F, advised the Council to take clear, firm and immediate action, so as not to waste resources. Snohomish is not Seattle and will not necessarily receive an application for an injection site, but to pass a ban will ensure this will not happen. It’s a clear distinct decision – make it, be done and move on.

Judy Kirkland-Betten, supports rewriting the laws, so the Planning Director has the power to reject applications for safe injection sites.

Arlyce Hopkins, supports an immediate moratorium, as somebody might come in under the radar as a medical facility, when in actuality, it is a safe injection site. Snohomish is not prepared to accommodate heroin injection sites.

Karen Crowley, 602 Avenue A, supports a process for addressing this issue in a holistic manner. The City doesn’t have a good plan to respond to the issue of opioid abuse. She wants a thoughtful plan.

Bill Rockwell, 13309 93rd Avenue SE, supports an immediate ban. It is the most expedient way to address the issue.

Mike Whitney, 521 Cypress, does not support safe injection sites, but he does support a deliberative democratic process.

Citizen Comments: Closed

Councilmember Sanders stated opioid abuse and addiction is a national problem. There is no one solution. This is a complex problem. The City needs to explore options. He does not view Snohomish as an appropriate location for this type of facility and supports a six-month moratorium.

Councilmember Merrill noted a Council Goal which referenced developing a broader City role and strategy to deal with homelessness, addictions, and mental health problems in the community. He would like to see the energy devoted to this moratorium going into beginning to deal with the City’s overall strategy is addressing these issues. He doesn’t see a safe injection site coming to this area anytime soon.

Councilmember Redmon does not want to be reactive and wants to be proactive in how the City deals with this problem. She noted the impact on City staff and how much time would be dedicated to addressing this issue. It involves considerable resources just to deal with the temporary moratorium. It makes more sense to develop a comprehensive plan for the long term.

Councilmember Guzak agreed this is not an issue for the City currently. As Councilmember Dana pointed out, the City can deny the site even if one comes in by not issuing a business license. She does not support expending resources on this matter and is in favor of doing nothing at this time. She supports a more holistic approach, as referenced in the Council Goals.

Councilmember Dana stated citizens voted 2 to 1 in November denying marijuana sales in town. It is clear the voters are not interested in having drug use or sales in the City as an allowable activity. He suspects if the City went back to the voters and asked what they felt about sanctioned drug injection sites, they would probably vote similarly. This is

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a permitting issue, and he supports the Planning Commission investigating and developing code language which would be appropriate. He favors a public process where the community has gone through the review, discussion and a recommendation, which would give the Council the authority to approve or disapprove this action. A six month moratorium and giving the Planning Commission a work program to develop code language, with public hearings, will show due diligence and provide support to the Planning Director in the event an application was made to the City.

Councilmember Schilaty was not supportive of marijuana retail businesses within the City. The difference with that issue was there was a state initiative passed to allow marijuana to be grown, processed and sold within the State. The City needed to make an imminent decision. The Attorney General indicated cities could ban or place a moratorium while researching permanent solutions. This was the single biggest issue in her ten years on the City Council. However, the issue was imminent. It is difficult for her to conclude this matter needs to be handled immediately. The procedure by which these type of ordinances are enacted are timely and require extensive resources. She supports focusing on a more comprehensive plan to deal with these matters, similar to the program the City of Monroe has implemented.

MOTION by Guzak to do nothing and take a holistic approach and review options at a later date. There being no second, the motion died.

Mayor Kartak stated the likelihood of having an organization come to the City and open a safe injection site is low. However, the consequences if one should come to Snohomish at some point would be tremendous. He asked Planning Director Pickus if other cities have a ban in place and the simplicity to implement a ban.

Mr. Pickus explained there is simplicity in adopting the interim regulations because other cities have done the work. However, Snohomish is unique, so there is no “copying and pasting” for any permanent regulations. It would require public hearings to hear what the community wants and he is confident the Planning Commission would feel the same way.

MOTION by Dana, second by Countryman that a six month moratorium be adopted for sanctioned drug injection sites, with the stipulation that the Planning Commission undertake a work program to develop code language addressing conditions under which drug injection sites may or may not be allowed. The motion failed (4-3). Guzak, Merrill, Schilaty and Redmon voted nay. Sanders, Dana and Countryman voted aye.

MOTION by Sanders, second by Dana to permanently ban safe injection sites within the City of Snohomish. The motion failed (3-3 and 1 abstention) Guzak, Redmon, Merrill voted nay. Sanders, Dana and Countryman voted aye. Schilaty abstained.

Attorney Weed provided clarification that were there to be a successful motion to permanently ban safe injection sites through the land use code, it would require the matter be sent to the Planning Commission and there be public hearing(s) and the ordinance be brought back to Council for consideration.

MOTION by Guzak to do nothing and take a holistic approach and review options at a later date. There being no second, the motion died.

MOTION by Schilaty, second by Countryman, that staff draft a six-month interim moratorium ordinance for sanctioned drug injection sites, with the stipulation that the Planning Commission undertake a work program to develop code language addressing conditions under which drug injection sites may or may not be allowed, while staff simultaneously works on a more comprehensive plan to deal with these issues.

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Councilmember Redmon does not support a ban. She has spoken to citizens that do want safe injection sites. She wanted to make sure everybody’s viewpoints were being heard.

Councilmember Guzak does not support the motion. She thinks the effort expends excessive staff resources. She wants a more holistic approach to these issues.

VOTE ON THE MOTION: The motion passed (4-3). Countryman, Dana, Schilaty and Sanders voted aye. Guzak, Merrill and Redmon voted nay.

c. REVIEW Council’s Rules and Procedures

Attorney Grant Weed stated the purpose of this agenda item is for biennial review and for providing further direction to staff regarding the City Council’s resolution for its operating rules and procedures. This review is to be done as needed, but no less than every two years in January of even-numbered years, which is the same time that new Councilmember terms begin.

Mr. Weed discussed the following key issues recommended for discussion by the Council as follows:

 Mayor Pro Tem or Council President  Council Meeting Agenda  Adjournment  Communications Technology  Public Comments

Citizen Comments:

Morgan Davis, referenced page 38 of the Council agenda packet and noted under Public Comments the goal is to improve citizen engagement and to have two-way communication. He would like that goal to be embraced and put into practice. The past Council discouraged dialogue with the citizens. He questioned the meeting end time from 10:00 p.m. to 9:00 p.m. and wanted to know if the City Attorney and/or Councilmembers’ compensation would be affected by this change.

Bill Betten, 7429 Orchard, thanked Interim City Administrator Schuller for his presentation earlier in the evening on the budget. Mr. Betten agreed with Mr. Davis. He supports the Council engaging in an open two-way dialogue with the citizens.

Citizen Comments: Closed

Councilmember Schilaty stated the City Council meetings are business meetings. It’s to conduct the business of the City in an efficient and effective manner. It’s not the place for a two-way dialogue, which would be more appropriate in a Town Hall Meeting forum. She noted Council meeting packets are distributed in advance of the meetings, which provides an opportunity for citizens to directly contact the Mayor, Councilmembers or staff with their questions. She would like to see citizen comments only in the beginning of the meeting. Since citizen comments have been allowed on all agenda items, with the exception of New Business and Consent Items, the Council meetings have been lengthier.

Councilmember Schilaty supports changing the Council workshops and regular meeting times to begin one hour earlier, and is in favor of a Council President.

City Council Meeting January 16, 2018 15 AGENDA ITEM 3b

Councilmember Guzak favors a Council President, and agreed with Councilmember Schilaty that by extending citizen comments to most agenda items, the meetings have become longer and more conflicted. She supports citizen comments on Public Hearings and Action Items, but not Discussion Items. The Mayor, Councilmembers and staff are all available by email and phone. She supports Town Hall Meetings.

Councilmember Sanders supports a Council President.

Councilmember Merrill supports a Council President and for limiting citizen comments, as long as there are Town Hall Meetings and other forums for citizens to engage in open dialogue with the Council.

Councilmember Redmon supports a Council President, and agreed with the idea of limiting citizen comments on discussion items, but would like to hold Town Hall Meetings or other forums for community dialogue.

Councilmember Countryman supports a Council President.

Councilmember Dana recalled when he was elected to the City Council in 1989, meetings started at 7:00 p.m. and often lasted until midnight. Public comment was allowed after Council actions were completed. In order to comment on any item, citizens were not allowed to comment at all until the end of the meeting. When elected Mayor in 1991, he changed the public comment to coincide with the agenda items to enable people to talk. Councilmember Schilaty’s comment that the Council meetings are to address the City’s business is true. Citizen comments are a courtesy, not a right, which the Council extends to the public.

Councilmember Dana is in favor of a Council President.

MOTION by Guzak, second by Redmon to elect a Council President, who will also serve as the Mayor Pro Tem. The motion passed (7-0).

MOTION by Schilaty, second by Guzak to move the start time of the City Council Workshops from 6:00 p.m. to 5:00 p.m. and the City Council regular meeting end time from 10:00 p.m. to 9:00 p.m., to be extended by thirty minute intervals up to 10:00 p.m., if needed. The motion passed (6-1). Countryman voted nay.

MOTION by Guzak, second by Schilaty to allow citizen comments at the beginning of the meeting under Citizen Comments, Public Hearings, Action Items, but not for Discussion Items, New Business or Consent Items.

Councilmember Schilaty moved that the motion be AMENDED to disallow all citizen comments except at the beginning of the meeting during Citizen Comment and for Public Hearings. There being no second, the amended motion died.

Councilmember Dana does not support preventing citizens from commenting. He supports citizen comments during discussion items. He opposes the motion.

Councilmember Guzak has witnessed the privilege to comment abused on numerous occasions. If a citizen wishes to comment on a discussion item, they are allowed to do so during citizen comments at the beginning of the meeting.

VOTE ON THE MOTION: The motion passed (4-3). Redmon, Guzak, Schilaty and Merrill voted aye. Dana, Sanders and Countryman voted nay.

City Council Meeting January 16, 2018 16 AGENDA ITEM 3b

7. ACTION ITEM: APPOINT Council President

Mr. Schuller explained this agenda item is for the City Council to select from the current Councilmembers an individual to serve in the role of Council President. In past years, this has been for a two-year term. There are many ways to accomplish this and meet the requirements of state law. However, due to the expectation that the Council will want to follow recent past practice to allow for written ballot voting, it is anticipated that a motion would first be made to waive regular procedures, which require all votes to be by voice. Mr. Schuller described the procedure for nominating and electing the Council President.

MOTION by Schilaty, second by Guzak that the City Council waive the usual procedures to allow the vote by written ballot. The motion passed unanimously (7-0).

Councilmember Guzak nominated Councilmember Sanders for Council President, second by Councilmember Schilaty.

Mayor Kartak read the written ballots with Councilmember Sanders receiving seven votes.

The Clerk confirmed the count and Councilmember Sander’s appointment to Council President.

MOTION by Schilaty, second by Dana to take a voice call vote and appoint Councilmember Sanders as Council President to serve a two-year term, terminating the first Council meeting in January 2020. The motion passed unanimously (7-0).

8. CONSENT ITEMS:

a. AUTHORIZE payment of claim warrants #61861 through #62011 in the amount of $980,951.43, and payroll checks #15437 through #15450 in the amount of $399,367.51 issued since the last regular meeting.

b. REAPPOINT Jeff Rasmussen as the City’s Representative to the Board of Health.

MOTION by Guzak, second by Schilaty to pass the Consent Items. The motion passed unanimously (7-0)

9. OTHER BUSINESS/INFORMATION ITEMS: None

10. COUNCILMEMBER COMMENTS/LIAISON REPORTS:

Councilmember Schilaty welcomed the new Councilmembers.

Councilmember Guzak welcomed the new Councilmembers and looks forward to working with each of them. She attended the Alliance for Affordable Housing (AHA) meeting and briefed the County Council on their midterm goals. Currently, the City provides $1,800 per month based on population. AHA is looking to establish a trust fund of $500,000. She hopes the City will be willing to step up and contribute to the affordable housing effort. The 12th Annual Winter Solstice Walk sponsored by Yoga Circle Studio was very successful. She attended the toilet paper ribbon cutting with Mayor Kartak for the City Hall Restroom Dedication. Councilmember Guzak thanked Scott Cox for the women’s restroom improvements.

Councilmember Sanders thanked the Councilmembers for voting him as Council President. He is excited to assume the duties of this role. On January 3, he will be attending the Economic Alliance of Snohomish County. On January 11, there will be a Carnegie Project meeting at the Aquatic Center. He gave a shout out to the local Fire Department for their quick response to a minor incident at his residence at 2 a.m. involving a pan left on the stove. City Council Meeting January 16, 2018 17 AGENDA ITEM 3b

Councilmember Merrill looks forward to serving as liaison to the Public Safety Commission, Economic Development Commission and Community Transit Board.

Councilmember Redmon reported that she spoke with Mr. Schuller regarding live streaming Council meetings. Unfortunately, it is beyond the resources of the City. However, this does not prevent citizens from live streaming. Mr. Schuller will be making a presentation at a Building Bridges presentation to inform the community about how the City operates. This will allow for an off-line, face-to-face discussion on Thursday, February 1 at Looking Glass Coffee at 6:00 p.m.

Councilmember Dana stated there will be a Planning Commission meeting tomorrow night at 6:00 p.m. in the School District Boardroom.

11. INTERIM CITY ADMINISTRATOR COMMENTS:

Mr. Schuller stated there will be a Mayor and City Council group photo at the January 16 meeting scheduled prior to the regular Council meeting. The group photo will be placed in the City’s February Quarterly Magazine.

The second community meeting for the Carnegie Project will be held on Thursday, January 11 from 6 to 8:00 p.m. at the Snohomish Aquatic Center.

Mr. Schuller also wanted to mention that the regular Council meetings are available on audio at the City’s website for those who cannot attend the meetings.

12. MAYOR’S COMMENTS:

Mayor Kartak stated the City lost its K-9 handler who resigned. Chief Rogers is working with City Hall to determine what the City’s options are and it will be discussed with the Council at the next meeting.

MOTION by Schilaty, second by Guzak to EXTEND the City Council meeting from 10:00 p.m. to 10:15 p.m. The motion passed unanimously (7-0)

13 ADJOURN to EXECUTIVE SESSION at 10:02 p.m. for 10 minutes to discuss potential litigation, pursuant to RCW 42.30.110(1)(i) with no action to follow.

14. RECONVENE and ADJOURN at 10:12 p.m.

APPROVED this 16th day of January 2018

CITY OF SNOHOMISH ATTEST:

______John Kartak, Mayor Pat Adams, City Clerk

City Council Meeting January 16, 2018 18 ACTION ITEM 5a

Date: January 16, 2018

To: City Council

From: Grant Weed, City Attorney

Subject: City Council Rules and Procedures – Resolution 1371

The purpose of this agenda item is for City Council review and approval of Resolution 1371 revising its operating rules and procedures. The Council discussed this item at the January 2, 2018 meeting.

BACKGROUND: In 1994, the City Council established a policy of procedures for conducting business at Council meetings with Resolution 843. Included with those procedures was a requirement for periodic review. This review is to be done as needed, but no less than every two years in January of even-numbered years, which is the same time that new Councilmember terms begin. A working draft with some suggested revisions to current Resolution 1339 was discussed at the January 2, 2018 Council meeting.

SUMMARY OF CHANGES: Based on Council’s direction at the January 2 meeting, the following changes were added to the Resolution:

Council President: The Council President position was added. The Council President would serve as Mayor Pro Tem but also have broader responsibilities as further described in the attached Resolution. See Section II (B);

Change in Plan of Government: The proposed revisions have several changes to make the resolution consistent with the new Mayor-Council plan of government, including but not limited to the Mayor’s authority under state law to break a tie vote and to veto ordinances;

Council Meeting Agenda: Under Section V (E). (Council Agenda), minor changes to the agenda format were made;

Adjournment: Under II (G). (Adjournment), “Council meetings shall now begin at 6:00 p.m. and adjourn at or before 9:00 p.m. Time may be extended in increments by motion of Council. When there is a need for a one hour workshop, it would now start at 5:00 p.m. When less than one hour is needed, a workshop can be scheduled prior to 6:00 p.m., as the need dictates. A future housekeeping ordinance amending SMC 2.04.010 will be needed to be consistent with this direction;

Communications Technology: Minor changes on page 13 and 14 under Section VII (Electronic Media). Additional training on social media is being planned for 2018; and

Public Comments: As directed by Council, Council will continue to allow up to three minutes for citizens comments at the beginning of the Council meeting during Citizen Comments, and also during Public Hearings, and Action Items. Unless determined otherwise by a majority of City Council, separate public comment will not be allowed on agenda items labeled as discussion items. A future housekeeping ordinance amending SMC 2.04.070 will be needed to be consistent with this direction.

City Council Meeting January 16, 2018 19 ACTION ITEM 5a

STRATEGIC PLAN REFERENCE: Not applicable

RECOMMENDATION: That the City Council REVIEW and PASS Resolution 1371 regarding Council meeting procedures.

ATTACHMENTS: Proposed redline version of Resolution 1371 regarding Council Rules and Procedures.

City Council Meeting January 16, 2018 20 CITY OF SNOHOMISH Snohomish, Washington

RESOLUTION XXXX1371

A RESOLUTION OF THE CITY OF SNOHOMISH ESTABLISHING PROCEDURES FOR THE CONDUCT OF BUSINESS AT COUNCIL MEETINGS AND REPEALING RESOLUTION 1339

WHEREAS, RCW 35A.13.170 grants the City Council authority to establish rules of conduct for their meetings; and

WHEREAS, a comprehensive procedure for Council meetings will provide the most expedient means of conducting Council meetings; and

WHEREAS, pursuant to Resolution 1339 the City Council of the City of Snohomish established procedures for the conduct of business at Council meetings; and

WHEREAS, the City Council has studied and reviewed these procedures and determined that periodic review and updates to these procedures is appropriate; and

WHEREAS, the recent change in form of government has necessitated updates to the these procedures to be consistent with the new form of government; and

WHEREAS, the City Council decided that in order to keep these rules in the form of one consolidated document, Resolution 1339 should be repealed and replaced by this Resolution;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SNOHOMISH AS FOLLOWS:

Resolution 1339 is hereby repealed and shall be replaced with this Resolution XXXX 1371 which shall read as follows:

I. General: These rules constitute the official rules for the conduct of business by Snohomish City Council. In all other contested decisions arising from points of order, the Council shall be governedguided by Robert’s Rules of Order Newly Revised, a copy of which is maintained in the office of the City Clerk.

II. Organization:

A. Swearing in of New Councilmembers. Newly elected Councilmembers shall be sworn in either (1) within the ten days preceding January 1st, or (2) at the last regularly scheduled meeting of the year as per RCW 29A.20.040. In the case of an appointment to fill a vacancy, the Councilmember shall be sworn in at the

City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 1 21 same meeting as the appointment or the next regular meeting, at the option of the new Councilmember.

B. Election of Council President/Mayor Pro-Tem.(To be discussed by Council) The Council shall elect a Mayor and a Council President who shall serve as Mayor Pro-tem for a term of two years and organize itself at the first Council Meeting during even-numbered years. In the temporary absence of the Mayor, the Council President/Mayor Pro-tem shall perform the duties and responsibilities of the Mayor. In the absence of both the Mayor and the Council President/Mayor Pro- Tem, the Council shall appoint one of the members of the Council to act as a temporary Presiding Officer.

In the event the Mayor is unable to serve the remainder of the term, a new Mayor shall be elected at the next Regular Meetingas provided by law. Until a new Mayor is elected to fill the vacancy, the Council President/mMayor pro-Tem shall fulfill the duties of Mayor.. In the event the Council President/Mayor Pro-tem is unable to serve the remainder of the term, a new Council President/Mayor Pro-tem shall be elected by the City Council at the next Regular Meeting.The Council may, but shall not be required to elect a Council President which shall fulfill all of the responsibilities of the Mayor Pro-Tem and in addition, shall be authorized to perform additional duties such as acting as liaison between the Council (legislative branch) and the Mayor (executive branch), participate with the Mayor and City Administrator in planning upcoming Council meeting agendas and assisting in the assignment of Councilmembers to subcommittees and as liaison to boards and commissions. The Council may request the Council President to perform other responsibilities that are consistent with the administration of the legislative function of Council.

C. Quorum. At all Council Meetings, a majority of the Council (four members) shall constitute a quorum for the transaction of business, but a lesser number may recess or adjourn.

D. Attendance and Excused Absences.

1. Councilmembers. RCW 35A.13.020 provides that a Councilmember shall forfeit his or her office by failing to attend three consecutive Regular Meetings of the Council without being excused by the Council. Members of the Council may be so excused by complying with this section. The member shall contact the Mayor; or, if the Mayor is not available, the City ManagerCouncil President/Mayor Pro-Tem, or City Clerk, who shall convey the message to the Mayor. Following roll call, the Mayor shall inform the Council of the member’s absence, state the reason for such absence, and inquire if there is a motion to excuse the member. This motion shall be non-debatable. Upon passage of such motion by a majority of members present, the absent member shall be considered

City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 2 22 excused and the City Clerk will make an appropriate notation in the minutes.

2. City Clerk. The Clerk or an authorized Deputy Clerk shall attend all Council Meetings. If the Clerk and the Deputy Clerk are absent from any Council Meeting, then the Mayor shall ask the City Manager to appoint a member of the staff to act as Clerk for that meeting.

3. Officers or Employees. Any City officer or employee shall have the duty, when requested by the Council, to attend Council Meetings and shall remain for such time as the Council may direct.

E. Decorum.

1. Forms of Address. The Mayor shall be addressed as “Mayor (surname)”. Members of the Council shall be addressed as “Councilmember (surname)” or by the name requested by the Councilmember.

2. Councilmember Communications Protocols During Meetings:

a. No Councilmember comments are to be personal in nature or otherwise disruptive. All Councilmember comments are to be addressed to the Presiding OfficerChair.Whenever in these Rules the term “Presiding Officer is used it shall mean the Mayor or in the absence of the Mayor , the Council President/Mayor Pro Tem.

b. All Councilmember comments during meetings shall be germane to the business of the City and tempered to advance the debate.

c. Councilmember comments during meetings shall be concise and respectful of the time available to complete actions on the agenda and the desire to provide ample opportunities for citizens and other Councilmembers to comment.

d. Council members may not take action via electronic device while in an open public meeting of the governing body. “Action,” as defined under RCW 42.30.020, means the transaction of the official business of a public agency by a governing body including but not limited to receipt of public testimony, deliberations, discussions, considerations, reviews, evaluations, and final actions. "Final action" means a collective positive or negative decision, or an actual vote by a majority of the members of a governing body when sitting as a body or entity, upon a motion, proposal, resolution, order, or ordinance.

e. City Councilmembers are responsible for complying with the communication guidelines contained in this policy. Violations City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 3 23 could result in legal exposure to the Councilmember and the City and loss of privileges to access to technology mediums or systems. Sanctions for violation of Councilmember Communications protocols as described in this section may include the following, although the Council may decide, based on the severity of the violation, to begin with steps other than the first step as listed here:

i. On the first violation, the Presiding OfficerChair may issue a warning orally to the Councilmember who has violated these protocols.

ii. On the second violation, the Presiding OfficerChair, upon a motion being adopted by the City Council, may issue a written reprimand to the Councilmember who has violated these protocols.

iii. On the third violation, the Presiding OfficerChair, upon a motion being adopted by the City Council, may issue a formal resolution of censure to the Councilmember who has violated these protocols.

iv. On the fourth violation, the Presiding OfficerChair, upon a motion being adopted by the City Council, may remove the committee and liaison assignments of the Councilmember who has violated these protocols.

3. Right to Eject. While the Council is in session, both the members and the public must preserve order and decorum, and shall neither, by conversation or otherwise, delay or interrupt the meeting or the peace of the Council, nor disrupt any member while speaking or refuse to obey the orders of the Presiding Officer, except as otherwise provided in these Rules. Any person who becomes boisterous, unruly, or who physically or verbally threatens any other person while addressing the Council or while attending a Council meeting shall be asked to leave by the Presiding Officer and the Police Chief shall escort them from the Council Chambers. The Presiding Officer may also call for a recess so that measures may be taken to restore order to the meeting.

4. Hearings. Whenever the Council is conducting a public hearing on a quasi-judicial matter that affect individuals or property rights, such hearings must not only be fair, but must be free from even the appearance of unfairness. Therefore, in their consideration of such matters Councilmembers shall:

a. Try to avoid any ex parte contact with the individual or property owner whose rights are under consideration;

City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 4 24 b. Try to avoid any public or private statements in advance of the hearing that would suggest that the Councilmember has decided the issue before the hearing.

5. Ex parte Communication. Consistent with RCW 42.36.060, if any Councilmember has had ex parte communications with opponents or proponents with respect to a quasi-judicial proposal, that Councilmember must disassociate him/herself from the proceedings, unless:

a. That Councilmember places on the record the substance of any written or oral ex parte communications concerning of the action; and

b. The Presiding Officer makes a public announcement providing for an opportunity for any party to rebut the substance of the ex parte communication.

6. Conflict of Interest. Councilmembers that disassociate themselves from participating in a public hearing due to the violation of the appearance of fairness doctrine or a conflict of interest shall leave the Council Chambers during Council consideration of a matter.

F. Voting.

1. Method. Unless otherwise provided for by statute, ordinance, or resolution, all votes shall be taken by voice; except that at the request of any Councilmember, a roll call vote shall be taken by the Clerk.

2. Tie Vote. The Mayor shall have a vote only in the case of a tie in the votes of the councilmembers with respect to matters other than the passage of any ordinance, grant, or revocation of franchise or license, or any resolution for the payment of money. In case of a tie vote on any proposal that may not be broken by the mayoral vote, the proposal shall be considered lost.

3. General. Each Councilmember shall vote on all questions put to the Council, unless a conflict of interest or an appearance of fairness question under state law is present. Unless a member of the Council states that he or she is abstaining, his or her silence shall be recorded as an affirmative vote.

4. Veto By Mayor. Pursuant to RCW 35A.12.100 the mMayor shall have the power to veto ordinances passed by the council and submitted to him or her as provided in RCW 35A.12.130 but such veto may be overridden by the vote of a majority of all councilmembers plus one more vote.

City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 5 25

G. Adjournment. Council meetings shall adjourn at or before 109:00 p.m.; except the time may be extended in half-hour increments until 1110:00 p.m. upon approval of a formal motion or motions. At 1110:00 p.m. the meeting shall may be continued to a date and time certain upon approval of a formal motion. The date and time will be announced by the chair Presiding Officer at the meeting.( To be discussed with Council)

III. Officers:

A. Mayor Mayor Pro-Tem. The selection, duties, and powers of Mayor Council President and Mayor Pro-tem shall be:

1. Selection. Biennially in even numbered years at the first meeting of the new Council the Councilmembers shall by majority vote choose a chairman Council President to act as Mayor Pro-Tem from among their number unless it is so approved by the voters for the chairman to be elected pursuant to RCW 35A.13.033. The chairman of the Council shall have the title of Mayor (RCW 35A.13.030). Selected in the same manner as Mayor shall be a Mayor Pro-Tem..

2. Duties as Presiding Officers. The Mayor, or in his or her absence the Mayor Pro-Tem (Council President), shall be the Presiding Officer of the Council. In the absence of both the Mayor and the Mayor Pro-Tem, the Council shall appoint one of the members of the Council to act as a temporary Presiding Officer.

3. Powers. In addition to the powers conferred as Mayor as listed below and as set forth in state law, the Mayor shall continue to have all the rights, privileges, and immunities of a member of the Council. The Mayor shall be recognized as the head of the City for ceremonial purposes and by the governor for purposes of military law. The Mayor shall have no regular administrative duties, but in time of public danger or emergency, if so authorized by ordinance, shall take command of the police, maintain law, and enforce order.

BA. Presiding Officer’s Duties. It shall be the duty of the Presiding Officer to:

1. Call the meeting to order.

2. Keep the meeting to its order of business.

3. Control discussion in an orderly manner by:

a. Giving every Councilmember who wishes an opportunity to speak when recognized by the ChairPresiding Officer;

City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 6 26 b. Permitting citizen comments at the appropriate times; and

c. Requiring all speakers to speak to the question and to observe the rules of order.

4. Decide all questions of order, subject to the right of appeal to the Council by any member.

IV. Committees. Ad hoc committees of Councilmembers may be appointed by the Mayor, with the concurrence of the Council, from time to time as the need arises. The members of such ad hoc committees will select the committee chairperson.

V. Council Meetings.

A. Open to the Public. All Council Meetings shall comply with the requirements of the Open Meetings Act (RCW 42.30). All Meetings of the Council shall be open to the public. The City shall comply with the provisions of RCW 35A.12.160 regarding notice of public meetings. (See also Section VII Electronic Media and Technology, Councilmember Communications Outside of Meetings, Open Public Meetings (OPMA) and Public Records Act (PRA).)

B. Type of Meetings.

1. Regular Meetings. The Council shall hold their Regular Meetings on the first and third Tuesdays of the month between 7:00 p.m. and 10:00 p.m. Should any Tuesday fall on a legal holiday, the meeting shall be held at the same hour and place if available on the next working day. Any change in location will be included in the regular publication notice of the meeting agenda.

2. Workshops. The Council may hold a workshop one hour before any regular meeting of the month. Additional workshop sessions may be scheduled as needed. Should any Tuesday fall on a legal holiday, the meeting shall be held at the same hour and place if available on the next working day. These meetings will be informal meetings for the purpose of more prolonged discussion of issues and topics selected by the Mayor City Manager or Council. Workshops may be held jointly with advisory Boards and Commissions to the Council.

3. Special Meetings. Special Meetings may be called by the Mayor by written notice delivered to each member of the Council at least twenty- four hours before the time specified for the proposed meeting. Special Meetings shall also be called by the Mayor upon the written request of any three members of the Council. The notice of such Special Meetings shall state the Subjects to be considered, and no subjects other than those specified in the notice shall be considered.

City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 7 27

C. Executive Sessions.

1. General. The Council may hold Executive Sessions from which the public may be excluded, for the purposes set forth in RCW 42.30.110 and RCW 42.30.140. Before convening an Executive Session, the Presiding Officer shall announce the purpose of the session, the anticipated time when the session will be concluded and shall state whether action by Council is expected following the Executive Session. Should the session require more time, a public announcement shall be made that the session is being extended.

2. Confidentiality. Councilmembers should shall keep confidential all written materials and verbal information provided to them during Executive Sessions unless otherwise agreed by a majority of Council. Confidentiality also includes information provided to Councilmembers outside of Executive Sessions when the information is considered to be exempt from disclosure by State law.

3. Ex parte Contact. If the Council, after Executive Session, has provided direction to City staff on proposed terms and conditions for City business, all contacts with any other party should be done by the designated City staff representative handling the issue. Councilmembers should obtain the permission of the Mayor City Manager prior to discussing the information with anyone other than other Councilmembers, the City Attorney, or City staff designated by the City ManagerMayor. Any Councilmember having any such contact or discussion needs to make full disclosure to the City MayorManager and/or Council in a timely manner.

D. Meeting Place. Regular Council Meetings will be held at the George Gilbertson Board Room in the Snohomish School District Resource and Services Building at 1601 Avenue D or another public meeting facility as advertised. Workshops and Special Meetings will usually be held at the same location, but may be held at other appropriate locations, with proper notice.

E. Council Agenda. (To be discussed By Council)

1. Order of Business. No Legislative item shall be voted upon which is not on the agenda as approved by the Council at the meeting. The order of business for each Regular Meeting shall be as follows:

Regular Session (67:00 p.m. - 910:00 p.m.)

1. Call to Order 2. Approve the Agenda Contents and Order 3. Approve the Minutes of the Previous Meeting(s) 4. Citizen Comments on items not on the agenda

City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 8 28 5. Proclamations or Presentations 6. Public Hearings 7. Action Items 8. Discussion Items 9. Consent Items 10. Other Business/Information Items 11. Councilmember Comments/Liaison Reports 12. Council President’s Comments/Report 13. City Administrator’s Manager’s Comments 14. Mayor’s Comments 15. Executive Session 16. Reconvene Regular 17. SessionAdjourn

2. Consent Items. The City Manager in consultation with the Presiding OfficerMayor or City Administrator in consultation with the Mayor, shall place matters under the Consent Items which: (a) have been previously discussed by the Council, or (b) based on the information delivered to members of the Council by the administration, can be reviewed by a Councilmember without further explanation, or (c) are so routine or technical in nature that passage is likely. The motion to adopt Consent Items shall be non-debatable and have the effect of moving to adopt all items. Since adoption of any item under the Consent Items implies unanimous consent, any member of the Council shall have the right to remove any item. Therefore, under the item “Approve the Agenda Contents and Order”, the Presiding Officer shall inquire if any Councilmembers wishes an item to be withdrawn from the Consent agenda. If any matter is withdrawn, the Presiding Officer shall place the item at an appropriate place on the agenda for deliberation at the current or a future Council Meeting.

VI. Public Testimony.

A. Oral and Written Comments.

1. General. Unless determined otherwise by a majority of Council, public comment will be allowed on all Council action items, and for public hearings and discussion items. Time allotted shall not exceed three minutes. Any person may also speak under “Citizen Comments on items not on the Agenda” for no more than three minutes. Citizen comments regarding action and discussion items will be allowed following staff presentations and Council questions and prior to Council deliberations. Testimony given at a Public Hearing shall be limited to three minutes per person unless determined otherwise by the Presiding Officer with the concurrence of Council. Where a public hearing is scheduled (whether quasi-judicial or not) all public comment and testimony will be provided during the hearing so an adequate record can be made. Except for matters of City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 9 29 procedure, public comment and/or testimony shall not be given during the general citizen comment portion of the agenda and will be reserved for the time of the hearing.

2. Identification of Speakers. Persons testifying or providing public comment should identify themselves for the record as to name, address, and organization.

3. Time Limitations. Individuals will be allowed three (3) uninterrupted minutes to speak. Providing that all individuals are allowed to speak at the hearing, if time permits another three (3) minutes may be allowed for added comment. At the discretion of the Presiding Officer, with the concurrence of Council, additional time for receipt of oral and written testimony may be allowed. The Mayor or his designee shall be the timekeeper.

At a quasi-judicial hearing, the burden of proof generally lies with the applicant of the action before the Council. During the public testimony portion of the meeting, the applicant and the applicant’s advisors will not be limited in presentation time and will have the opportunity for rebuttal to opposing testimony.

4. Quasi-Judicial Items. A quasi-judicial action is an action of the Council which determines the legal rights, duties, or privileges of specific individuals or properties, such as rezones or plat approvals.

The order of business for a quasi-judicial hearing shall be as follows:

a. Appearance of Fairness Query b. Swearing in of all witnesses who intend to testify by the City Attorney c. Staff presentation d Board or Commission recommendation e. Applicant’s statement f. Council’s questions of Staff, Commission, and Applicant g. Citizens’ testimony h. Rebuttal by Applicant i. Public testimony closed j. Council deliberation k. Council action

5. Workshops. The Council may take public comments at a Workshop meeting, but only at the discretion of the Presiding Officer and with the concurrence of Council, when appropriate and practical.

6. Written Comments. Written materials may be submitted to the Council at the Regular Meeting at which an issue is to be considered. However the Council may not be able to consider such written comments at that time. City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 10 30 In order for written comments to reach the Council for consideration prior to the meeting or hearing, they must be filed with the Clerk no later than 1 p.m. of the Thursday preceding the Regular Meeting for distribution to the Council with the regular agenda packet.

VII. Electronic Media and Technology, Councilmember Communications Outside of Meetings, Open Public Meetings (OPMA) and Public Records Act (PRA).

A. It is the policy of the City Council of the City of Snohomish to adhere to the Revised code of Washington (RCW) 42.30 regarding Open Public Meetings and RCW 42.56 regarding Public Records.

1. All records, regardless of format, related to the conduct of City business reviewed, created or altered must be retained per the State of Washington Local Government Common Records Retention Schedule. (the CORE manual), pursuant to 42.56 RCW and 40.14 RCW, Preservation and Destruction of Public Records.

2 Per state law, all documents, files, communications and messages created, reviewed or altered that are related to the conduct of City business, regardless of format, are property of the City. As a result, these documents, files, communications and messages are not private or confidential unless otherwise noted in the Revised Code of Washington. The City reserves the right to request, access, monitor, and disclose the contents of electronic messages and any record, regardless of format, related to the conduct of City business on City-issued or personal devices that Council members use. Council members should have no expectation of privacy in either sending or receiving electronic messages, or other information on the Internet, City network or other electronic media related to City Business whether done on their own personal device or on a City issued device. The City may review the public records for legal exemption or redaction pursuant to the Public Records Act RCW 42.56 or other applicable state or federal laws and may provide third party notice providing affected parties the opportunity to file for a court order to prevent or limit disclosure.

3. Email Accounts: a. For ease of public record retention and for ease of document search, councilmembers are strongly encouraged to utilize the City’s assigned email account and information system for all City- related business.

b. Subject to limited exceptions set forth in state law, e-mail accounts established through the City’s information system for individual Councilmembers are considered public and subject to public disclosure laws.

City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 11 31 c. E-mails that are public records will be retained and archived according to City and State retention schedules.

d. Non-City provided email accounts used by individual Councilmembers for the conduct of communicating City business will be subject to public disclosure laws. Councilmembers are responsible for preserving all City business records on their personal devices, systems and servers.

4. Text Messages: Text Messages generated or received by individual Councilmembers for conducting City business on any personal device whether issued by the City or not, are subject to public disclosure laws and records retention schedules. Text messages must be retained and archived according to City and State retention schedules. Councilmembers are responsible for preserving all City business records on their personal devices, systems and servers.

5. Social Media: The City of Snohomish utilizes social media sites to enhance and promote the economic development initiatives of the community and to facilitate discussion of City issues, operations and services. City of Snohomish social media sites and all content therein are subject to the State of Washington’s public records laws. City and State records retention schedules apply to all social media content. Guidelines for Councilmember use of social media sites is as follows:

a. All social media site entries should clearly indicate that any content posted is subject to public disclosure laws and records retention schedules

b. Unless the content is pre-authorized by the City Council, Councilmembers posting to any social media site, whether owned by the City or a private individual or organization social media sites, should be clear that the individual Councilmember is speaking for themselves and not on behalf of the City or the City Council.

c. Information that has the potential to compromise the safety or security of the public or public systems should not be posted to social media sites.

d. Anything that may be construed as harassment or disparagement of others based on race, national origin, sex, sexual orientation, age, disability, or religious or political beliefs will not be tolerated. This

City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 12 32 includes, but is not limited to sending threatening messages, slurs, obscenities, sexually explicit images, cartoons or messages.

6. City issued cell phones and other devices: Cell phones and other devices, issued by the City, to individual Councilmembers will archive all text messages and retain the records according to records retention schedules. All texting of matters relating to City business will be done on City issued devices.

7. Non-City issued Cell phones and other devices. Non-City issued cell phones and other devices, used by individual Councilmembers, for texting or receiving texts relating to City business, will require archiving of text messages and retention of records according to records retention schedules.

8. Records Requests/Inspection/Monitoring.

a. All Council members are required to work collaboratively with the City Clerk’s Office for access to a personal or City-issued electronic device when responding to a public records request.

b. The City needs to be able to respond to proper requests resulting from public records request and legal proceedings that call for electronically-stored evidence. Therefore, the City must, and does, maintain the right and the ability to access City provided electronics and City email accounts and to inspect and review any and all data recorded in those applications and files. Because the City reserves the right to obtain access to all electronic mail messages left on or transmitted over these applications, Councilmembers should not assume that such messages are private and confidential or that the City or its designated representatives will not have a need to access and review this information.

c. The City reserves the right to regularly monitor electronic mail messages, information and all documents. The City will inspect the contents of computers or electronic mail in the course of an investigation.

9. Executive Session. It is recommended that Councilmembers havedo not use no electronic devices or transmit or receive electronic communications during executive sessions.

B. The following is a list of prohibited uses of City communication applications or devices:

City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 13 33 1. Transmitting any material or messages in violation of Federal, State, Local law, Ordinance, Regulation or City policy.

2. Distributing sensitive or confidential information, per RCW 42.23.070, Code of Ethics for Municipal Officers, Prohibited Acts.

3. Distributing unauthorized broadcast messages, soliciting or proselytizing others for commercial ventures, religious or political causes, or other non- job related matters except as provided elsewhere in this policy.

4. Accessing or distributing offensive or pornographic materials.

5. Using City-provided electronic media and devices for personal use, to accomplish personal gain, or to manage a personal business.

6. Downloading or distributing copyrighted materials not owned by the City, including software, photographs, or any other media except when authorized by the City ManagerMayor or Information Services Manager as it pertains to work related uses.

7. Developing or distributing programs that are designed to infiltrate computer systems internally or externally (viruses) or intentionally disrupting network traffic or crashing the network and connected systems.

8. Accessing or downloading any resource for which there is a fee without prior appropriate City Council authorization / approval and authorized by the City ManagerMayor or Information Services Manager.

9. Representing yourself as another user or employee, forging electronic mail messages, unauthorized access of others’ files with no substantial business purpose, or vandalizing the data of another user.

10. Attempting to access any system, which Council member is not authorized to access (hacking).

11. Giving your user name and password to anyone, except the Information Services Manager or designee for any purpose.

12. Inappropriate use, which is deemed by the City Council Policy or City Policies to be a violation of the intended purpose of any electronic media.

C. Councilmember Communications.

1. All written communications, including letters and electronic messages, responding to citizens should be distributed to all other Councilmembers and the City Clerk. However, to prevent a violation of the Open Public

City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 14 34 Meetings Act and a “serial Council meeting” the Council members should not reply “all” or have communications with more than two other members of the Council body.

2. The use of City letterhead by individual Councilmembers for communications to constituents or to other governmental entities shall not be allowed unless approved by Council majority.

3. Within the text of correspondence from Councilmembers to constituents, governmental entities, and community organizations, the Councilmember should not characterize or attempt to describe the views and actions of other Councilmembers in order to ensure that those Councilmembers have an opportunity to characterize their own views and actions.

4. The substance of phone calls by the Mayor to citizens or to officers of other governmental entities should be shared via email or other communication method whenever these phone discussions involve issues of significance for the Council as a whole. However, to prevent a violation of the Open Public Meetings Act and a “serial Council meeting” the Council members should not reply “all” or have communications with more than two other members of the Council body.

5. Letters to the editor for publication in newspapers, magazines and electronic or Internet-based publications submitted by individual Councilmembers should not represent the Councilmember’s personal views as those of the City or the City Council unless specifically directed to do so by the City Council.

VIII. Periodic Review. It is the intent of the City Council that Council procedures be periodically reviewed as needed, but no less than every two years. Therefore Council procedures shall be reviewed in the month of January of every even numbered year, and may be amended at any other time that the Council shall choose.

IX. Effect/Waiver of Rules. These rules of procedure are adopted for the sole benefit of the members of the City Council to assist in the orderly conduct of Council business. These rules of procedure do not grant right or privileges to members of the public or third parties. Failure of the City Council to adhere to these rules shall not result in any liability to the City, its officers, agents, and employees, nor shall failure to adhere to these rules result in invalidation of any Council act. The City Council may, by a majority vote, determine to temporarily waive any of the provisions herein. These rules shall be effective upon the date of adoption as set forth below.

PASSED by the City Council and APPROVED by the Mayor this ______day of ______, 20162018.

CITY OF SNOHOMISH

City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 15 35 ______Karen Guzak, Mayor ATTEST:

______Pat Adams, City Clerk

APPROVED AS TO FORM:

______Grant Weed, City Attorney

City Council Meeting W/S-17-002/Res. Establishing Procedures.RED2 January 16, 2018 RESOLUTION – Page 16 36 ACTION ITEM 5b

Date: January 16, 2018

To: City Council

From: Yoshihiro Monzaki, City Engineer

Subject: Street Vacation Request - Alley between Avenues A and B, north of Seventh Street

SUMMARY: Mr. Robert Perasso, owner of Parcel Nos. 00444400701300 (730 Avenue A), 00444400702200 (721 Avenue B), 00444400702500 (no address), 00444400701000 (728 Avenue A) and 00444400700800 (726 Avenue A) has requested a street vacation for the northern portion of the alley between Avenues A and B north of Seventh Street. A street vacation is a process whereby the City agrees to relinquish its ownership of a street right-of-way to the abutting land owner. This vacation has been requested to maximize the number of units for a multifamily development on Parcel No. 00444400702500 (no address).

BACKGROUND: This street (alley) vacation request was presented during the October 3, 2017 Council meeting. Council directed staff to process the petition for the vacation request. As the next step in the vacation process, Resolution 1374 (Attachment A) has been drafted for adoption setting a public hearing for February 20, 2018 on the proposed vacation. According to SMC 12.48.030, the Council will generally make its determination regarding whether to require compensation before it adopts the resolution, but the Council shall retain the discretion to review its determination following the public hearing. The requested vacation area was dedicated to the City as part of the E. C. Ferguson’s 4th Addition plat in 1890. Because the street was dedicated more than 25 years ago, the compensation amount can be up to the full appraised value. A portion of this alley was vacated by the City in 1979 (Ordinance No. 1427) and is a part of Parcel No. 00444400701300 (730 Avenue A).

ANALYSIS: Mr. Perasso selected Mr. S. Murray Bracket, MAI (Valbridge Property Advisors) to complete an appraisal for the area to be vacated. Mr. Bracket is on the City’s list of appraisers. The list of appraisers was taken from the Washington State Department of Transportation Real Estate Services Department (WSDOT). Appraisers must submit an application to WSDOT for review every year to qualify for placement on this list. WSDOT reviews their experience, education, certifications and license. The appraisers are required to pass a written test.

Attachment B is the land appraisal report completed for the vacation area (2,368 square feet) by the appraiser. According to the report, the market value for the vacation area is $25,000 ($10.50 per square foot). As stated on page 6 of the appraisal report, market value is defined by the Uniform Appraisal Standards for Federal Land Acquisitions, page 13, Section A-9 as “the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal.”

City Council Meeting January 16, 2018 37 ACTION ITEM 5b

Page 19 of the appraisal report shows a summary of the Land Sale Comparables that was used in this analysis. The Land Sale Comparables ranged from $7.15 to $24.30 per square foot. After reviewing the comparable sales and making adjustments to the sales amounts based on topography, zoning/entitlements and access/exposure, the appraiser determined that the value of the requested vacation area was between $7.15 and $13.27 per square foot and concluded that $10.50 per square foot would be used to calculate the market value ($25,000) for the requested vacation area. According to the Snohomish County Assessor’s Office Property Information, the 2017 market land value for the parcels, owned by Mr. Perasso, next to the requested vacation area ranged from $7.12 to $19.22 per square foot.

The requested vacation area is an undeveloped alley, behind multi-family buildings that front and access off of Avenues A and B. No abutting property owner will be landlocked and there will be no impacts to access due to this vacation. Because the alley has not been used for access or any other purpose by the public, and there are no plans for the City to improve this area in the future, the vacation will not harm the public. The cost for the City to maintain this right of way is difficult to justify because of the lack of public use. Mr. Perasso is currently maintaining this area. If the vacation is approved, the City will benefit by receiving compensation for the right of way and the increase in property tax.

The City, Snohomish County PUD and Puget Sound Energy have confirmed that there are no utilities in the requested vacation area and there are no plans in the future to install utilities in this area. Easements will not be needed for this area. The vacation would not affect the existing traffic flows or travel lanes. The requested street vacation area does not abut a body of water so the special procedures of RCW 35.79.035 do not apply.

Per SMC 12.48.015, the City Council’s “preliminary determination shall not be final or binding in any respect. If the applicant thereafter decides to proceed with a street vacation petition, all provisions of this chapter shall apply.”

STRATEGIC PLAN REFERENCE: Not applicable.

RECOMMENDATION: That the City Council PASS Resolution 1374 setting a public hearing on February 20, 2018 to consider the vacation of a portion of the alley between Avenues A and B, north of Seventh Street and request for compensation.

ATTACHMENTS:

A. Resolution 1374 B. Land Appraisal Report

REFERENCE DOCUMENTS:

1. Chapter 12.48, Street Vacation, Snohomish Municipal Code. (http://www.snohomishwa.gov/DocumentCenter/Home/View/424) 2. Alley Vacation Request (pages 15-20 of October 3, 2017 Council Packet) (http://www.snohomishwa.gov/AgendaCenter/ViewFile/Agenda/_10032017-726)

City Council Meeting January 16, 2018 38 ACTION ITEM 5b

ATTACHMENT A

CITY OF SNOHOMISH Snohomish, Washington

RESOLUTION 1374

A RESOLUTION OF THE CITY OF SNOHOMISH, WASHINGTON SETTING A PUBLIC HEARING ON FEBRUARY 20, 2018 PURSUANT TO SMC 12.48.030 FOR THE PETITION FOR VACATION OF A PORTION OF THE ALLEY RIGHT-OF-WAY BETWEEN AVENUES A AND B, NORTH OF SEVENTH STREET

WHEREAS, in accordance with SMC Chapter 12.48, the owners of at least two-thirds of the property abutting the right-of-way to be vacated signed a street vacation petition dated August 23, 2017; and

WHEREAS, a complete application for vacation of a portion of the Alley right-of-way between Avenues A and B, north of Seventh Street was filed with the City on September 13, 2017; and

WHEREAS, the City Council finds it is in the best interest of the City to consider the vacation of the following described right-of-way:

Legal Description for Alley Vacation in a Portion of Block 7, E.C. Fergusons 4th Addition to City of Snohomish:

The West 8.00 feet of that certain 16.00 feet Alley, adjoining and coincident, with Lots 22 to 27, inclusive, in Block 7, Plat of E.C. Fergusons 4th Addition to City of Snohomish, in accordance with the plat thereof, as recorded in Volume 2 of Plats, page 71, records of Snohomish County, Washington.

Together with the East 8.00 feet of that certain 16.00 feet Alley, adjoining and coincident, with the North 26.00 feet of Lot 8 and Lots 9-11, inclusive, in Block 7, Plat of E.C. Fergusons 4th Addition to City of Snohomish, in accordance with the plat thereof, as recorded in Volume 2 of Plats, page 71,records of Snohomish County, Washington.

Subject to existing private or public easements as now located in the herein described 16.00 feet Alley.

As depicted on the map attached hereto as Exhibit A. An area containing 2,368 square feet or 0.05 acres, more or less.

WHEREAS, pursuant to SMC 12.48.030 the City Council has considered the report of the Public Works Director and finds that it is in the public interest to set a public hearing not less than 20 nor more than 60 days from the date of this Resolution as required by SMC 12.48.030(B); City Council Meeting January 16, 2018 39 ACTION ITEM 5b

NOW, THEREFORE, be it resolved by the City Council of the City of Snohomish, Washington as follows:

(1) Pursuant to SMC 12.48.040(B), the City of Snohomish will require compensation not to exceed the full appraised value for the vacation of the above described right-of- way, said right-of-way having been dedicated for public use longer than 25 years.

(2) The City Council finds that compensation will be required as a condition of this vacation. The final amount thereof will be determined at the conclusion of the public hearing referenced in (3) below.

(3) Following public notice as required by law, the City Council will hold a public hearing to consider the vacation of the above described right-of-way and if the vacation request is approved, the final amount and terms of compensation. Said public hearing shall be scheduled for the regular meeting of the City Council to be held February 20th, 2018 at 7:00 p.m., or as soon thereafter as such hearing can be held.

PASSED by the City Council and APPROVED by the Mayor this 16th day of January

2018.

CITY OF SNOHOMISH By

John J. Kartak, Mayor

ATTEST: By Pat Adams, City Clerk

APPROVED AS TO FORM:

By Grant Weed, City Attorney

City Council Meeting January 16, 2018 40 ACTION ITEM 5b

EXHIBIT A

City Council Meeting January 16, 2018 41 ATTACHMENT B

Appraisal Report of

Alleyway between Avenues A & B, North of 7th Street Snohomish, Washington

FOR Mr. Robert Perasso Email: [email protected]

Valbridge Property Advisors | Puget Sound Corporate Office Smith Tower 506 2nd Avenue, Suite 1001 Seattle, WA 98104 206-209-3016 425-688-1819 fax valbridge.com Valbridge Job #: 17-0382 November 30, 2017

Mr. Robert Perasso Email: [email protected]

RE: APPRAISAL OF STREET (ALLEY) VACATION IN SNOHOMISH, WASHINGTON (Our File #17-0382)

Dear Mr. Perasso:

In response to your request, I have completed an appraisal of the proposed street vacation referenced above in Snohomish, Washington. The purpose of this report is to provide an opinion of the market value of the Right-of-Way to be vacated, which consists of the alleyway running in a north-south direction between Avenues A and B, north of 7th Street. The intended use of this appraisal is to aid in decision making and determination of the market value of the proposed right-of-way street vacation.

In accordance with valuation methodology, the valuation assumes the subject parcel is based on a similar utility to surrounding lands. As such, any disadvantages due to small size and irregular shape are disregarded. We have evaluated the right-of-way based on its assumed assemblage with adjacent parcels, using Across the Fence (ATF) methodology.

The subject of this appraisal consists of a portion of the existing right-of-way between Avenues A and B. The right-of-way to be vacated is primarily rectangular in shape, with an approximate width of 16 feet, and a length of approximately 180 feet. Overall, the area to be vacated totals 2,368 square feet.

This appraisal report was prepared in conformance with the Uniform Standards of Professional Appraisal Practice (USPAP). Summarized descriptions of properties used for comparison are included in this report, as well as all of our analyses and conclusions. The value conclusions herein are given subject to the specific assumptions and limiting conditions stated immediately following this transmittal letter. MR. ROBERT PERASSO NOVEMBER 30, 2017 PAGE 2

Based on an investigation and analysis of all relevant data, it is our opinion that the market value of the subject property, as of November 30, 2017, is:

TWENTY-FIVE THOUSAND DOLLARS ($25,000)

If you have further questions not answered in the accompanying appraisal report, please do not hesitate to call.

Sincerely,

VALBRIDGE PROPERTY ADVISORS PUGET SOUND

S. Murray Brackett, MAI

David Coleman, Senior Associate

Enclosures

Valbridge Property Advisors Puget Sound 2 17-0382.docx - Copyright © 2017 STREET VACATION BETWEEN AVNUES A & B, NORTH OF 7TH STREET SNOHOMISH, WA TABLE OF CONTENTS

Table of Contents

Executive Summary ...... 1 Subject Property Photographs ...... 2 Aerial View ...... 5 Part I - Introduction ...... 6 Identification of the Subject Property ...... 6 Summary of Appraisal Problem ...... 6 Legal Description ...... 6 History and Ownership ...... 6 Date of Inspection/Valuation ...... 6 Purpose of the Appraisal ...... 6 Property Rights Appraised ...... 7 Scope of the Appraisal ...... 7 Intended Use/Users ...... 8 Extraordinary Assumptions ...... 8 Personal Property ...... 8 Exposure Period ...... 8 Area/Neighborhood Description ...... 9 Market Analysis...... 10 Vacant Lots ...... 11 Conclusion ...... 11 Part II - Factual Data...... 12 Description of the Subject Property ...... 12 Survey ...... 14 Street Vacation Map...... 16 Assessed Value and Real Estate Taxes ...... 17 Improvements Description ...... 17 Part III - Highest and Best Use ...... 18 Highest and Best Use Definition ...... 18 Part IV - Analyses and Conclusions to Value ...... 19 Valuation ...... 19 Sales Comparison Approach ...... 19 Discussion of Land Sales ...... 21

Valbridge Property Advisors Puget Sound i 17-0382.docx - Copyright © 2017 MR. ROBERT PERASSO NOVEMBER 30, 2017 PAGE 2

Discussion of Adjustments ...... 21 Reconciliation of Sales and Conclusion of Fee Simple Land Value ...... 22 General Assumptions and Limiting Conditions ...... 24 Certification – Murray Brackett, MAI ...... 31 Certification – David Coleman, Senior Associate ...... 32 Addenda ...... 33 Comparable Data ...... 34 Qualifications ...... 44

Valbridge Property Advisors Puget Sound ii 17-0382.docx - Copyright © 2017 STREET VACATION BETWEEN AVNUES A & B, NORTH OF 7TH STREET SNOHOMISH, WA EXECUTIVE SUMMARY Executive Summary

Project: Street (alley) Vacation between Avenues A and B, north of 7th Street

Location: Alleyway between Avenues A & B, north of 7th Street in Snohomish, Washington

Site Size: 2,368 square feet

Improvements: The subject property consists of an existing alleyway right-of-way that is unimproved at the present time.

Utilities: All utilities necessary for development currently service the subject site.

Zoning: Medium Density Residential, City of Snohomish

Highest and Best Use: Residential

Value Conclusion: $25,000

Date of Valuation: November 30, 2017

Appraiser: S. Murray Brackett, MAI

David Coleman, Senior Associate

File: 17-0382

Valbridge Property Advisors Puget Sound 1 17-0382.docx - Copyright © 2017 STREET VACATION BETWEEN AVNUES A & B, NORTH OF 7TH STREET SNOHOMISH, WA SUBJECT PHOTOS

Subject Property Photographs

1) View showing north side of 7th Street.

2) View showing subject alleyway from 7th Street, looking north.

Valbridge Property Advisors Puget Sound 2 17-0382.docx - Copyright © 2017 STREET VACATION BETWEEN AVNUES A & B, NORTH OF 7TH STREET SNOHOMISH, WA SUBJECT PHOTOS

SUBJECT PROPERTY PHOTOGRAPHS

3) View looking north from center of alleyway.

4) Additional view looking north showing alleyway.

Valbridge Property Advisors Puget Sound 3 17-0382.docx - Copyright © 2017 STREET VACATION BETWEEN AVNUES A & B, NORTH OF 7TH STREET SNOHOMISH, WA SUBJECT PHOTOS

SUBJECT PROPERTY PHOTOGRAPHS

5) View looking south across alleyway.

6) Final view looking north along alleyway.

Valbridge Property Advisors Puget Sound 4 17-0382.docx - Copyright © 2017 STREET VACATION BETWEEN AVNUES A & B, NORTH OF 7TH STREET SNOHOMISH, WA AERIAL VIEW Aerial View – Provided by City

Valbridge Property Advisors Puget Sound 5 17-0382.docx - Copyright © 2017 STREET VACATION BETWEEN AVNUES A & B, NORTH OF 7TH STREET SNOHOMISH, WA PART I - INTRODUCTION

Part I - Introduction

Identification of the Subject Property The subject parcel consists of a smaller tract of land located between Avenues A and B, north of 7th Street in Snohomish, Washington. The property is primarily rectangular in shape, with a width of approximately 16 feet and a length of approximately 180 feet. Reference is made to the attached exhibit for a visual of shape of the subject property. Overall, the subject totals 2,368 square feet.

Summary of Appraisal Problem The purpose of this appraisal is to provide an opinion of the market value of the subject, which represents an existing right-of-way to be vacated by the City of Snohomish. As is typical in the valuation of street right-of-ways, the subject property is valued using an “across the fence” methodology. In other words, no discount is considered for its abnormal size or irregular shape.

Legal Description A legal description for the subject property has been included in the Addenda to this report. Please refer to Exhibit A for the Legal Description of the subject property.

History and Ownership The property is currently owned by the City of Snohomish and represents an alleyway between Avenues A and B, north of 7th Street. Based on information provided by the city, the subject property was dedicated to the city as part of the E.C. Ferguson’s 4th Addition plat in 1890. We are not aware of any other ownership changes have occurred since that timeframe.

Date of Inspection/Valuation The subject property was initially inspected on November 30, 2017. The effective date of this appraisal is November 30, 2017.

Purpose of the Appraisal The purpose of this appraisal is to form an opinion of the market value of a public right-of-way, which is to be vacated. From this conclusion of market value, a purchase price will be determined. Market value is defined as:1

“the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal.”

1 From Uniform Appraisal Standards for Federal Land Acquisitions, page 13, Section A-9.

Valbridge Property Advisors Puget Sound 6 17-0382.docx - Copyright © 2017 STREET VACATION BETWEEN AVNUES A & B, NORTH OF 7TH STREET SNOHOMISH, WA PART I - INTRODUCTION

Property Rights Appraised This appraisal is of the fee simple interest as encumbered by existing easements. Fee simple interest is defined as:2

Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.

An easement is defined as follows: 3

An interest in real property that transfers use, but not ownership, of a portion of an owner’s property.

This definition may be expanded as:

…the right to perform a specific action on a particular parcel of property, or portion thereof, by the grantees who do not hold the underlying fee.4

Scope of the Appraisal The scope of this appraisal involves the Sales Comparison Approach to value. Since the subject consists of essentially vacant residential land, we have compared the subject property with various residential land sales within the subject’s greater market area. In appraising the subject property, the appraisers did the following:

• Researched Snohomish County, Metroscan, CoStar and NWMLS, Inc. databases • Researched Valbridge | Valbridge Property Advisors | Puget Sound’s existing database • Confirmed all sales with buyers, sellers, their agents, and/or public records • Viewed all comparable sales • Reviewed all documents as cited throughout this report • Inspected the subject property

According to City of Snohomish Code 12.48.040, if the City Council determines in its discretion to grant the petition for vacation or any part thereof, the Council may by ordinance vacate such street or alley. Except as otherwise provided herein, such ordinance shall not become effective until the City is compensated in an amount which does not exceed one-half the appraised value of the area to be vacated;

2 From The Appraisal of Real Estate, Fourteenth Edition, 2013, Appraisal Institute, page 5. 3 From The Appraisal of Real Estate, Fourteenth Edition, 2013, Appraisal Institute, page 74. 4 From The Appraisal of Real Estate, Fourteenth Edition, 2013, Appraisal Institute, page 85. .

Valbridge Property Advisors Puget Sound 7 17-0382.docx - Copyright © 2017 STREET VACATION BETWEEN AVNUES A & B, NORTH OF 7TH STREET SNOHOMISH, WA PART I - INTRODUCTION

Notwithstanding above, when the street or alley has been part of a dedicated public right-of-way for twenty-five years or more, or when the street or alley or portions thereof were acquired at public expense, an amount that does not exceed the full appraised value of the area vacated. Compensation may be waived or reduced either when the vacation is initiated by the City of Snohomish or when the City Council deems it to be in the best interest of the City in accordance with the following criteria:

1. When the abutting property is owned by a governmental entity or by a non-profit corporation whose purpose is for the necessary support of the poor or infirm; or

2. When the street or alley was vacated by the provisions of Section 32, Chapter 19, Laws of 1889-90 (as described in SMC 12.48.050.

3. When the street or alley (right-of-way) vacated is traded for property of greater or approximately equal value;

4. When the street or alley (right-of-way) vacated is abutting residential properties and is 1500 square feet or less, the appraisal required under SMC section 12.48.070 may be waived and the value calculated as a percentage of the average Snohomish County Assessor assessed value of the abutting properties.

5. When the street or alley (right-of-way) vacated is de minimis, under 500 square feet, or otherwise has little to no assessed value.

Intended Use/Users The intended use of the appraisal is for decision making purposes with respect to the proposed street vacation, and is not intended for any other use. The client for the appraisal is Mr. Robert Perasso, and the intended users include the client. The appraisers do not intend use of this report by others.

Extraordinary Assumptions

Hazardous Waste No information regarding the presence or absence of hazardous waste on the subject property was provided. This appraisal assumes the absence of any and all hazardous waste on the subject property. If hazardous waste is found to be present on the subject property, an adjustment to the valuation contained in this report may be required.

Personal Property There is no personal property included within the appraised value.

Exposure Period The exposure and marketing periods are defined as those periods of time, before and after the date of value (respectively), which are necessary to achieve the value conclusion reported. The subject consists of residential land within the city limits of Snohomish. With additional consideration of the zoning and location, the property is located within a market that has been active since the economic downturn of the late 2000’s. Considering this, with adequate exposure, a 6- to 9-month marketing

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period should be sufficient to attract a purchaser for the subject property. The exposure period is considered identical.

Area/Neighborhood Description The subject property is located within the city limits of Snohomish, situated in Snohomish County. Snohomish prides itself for its historical downtown, and is known for its many antique shops. Snohomish is also referred to as the "Antique Capital of the Northwest." The historic business and residential center of the town constitutes the Snohomish Historic District, which is listed on the National Register of Historic Places. Many houses bear plaques with the year the house was built and the name of the people who originally occupied it. Each year the city gives tours of the historic houses; one of them, the Blackman House, is a year-round museum. A general aviation airfield, Harvey Airfield, is less than one mile southwest of downtown Snohomish.

The 1960s saw the city of Snohomish enter a period of decline. As the Boeing Company fell on hard times, many people were laid off and had to move away to seek other work. A commonly heard phrase was, "Will the last person out of Seattle, please turn off the lights?" Snohomish fought back with a redevelopment plan in 1965 that proposed the destruction of the historic structures along First Street to make way for an enclosed mall. The plan was not carried out due to lack of funds, and the area remains today as it has through much of its history.

The town's economic malaise continued throughout much of the '70s, with the downtown area given over to mostly bars and small shops. In 1973 the city adopted a Historic District Ordinance protecting historic buildings and structures from inappropriate alterations and demolitions and encouraging the design of new construction in keeping with the district's historic character. In the mid-1970s, larger stores moved away from First Street into newer developments and strip malls that spread out along Second Street and Avenue D.

In 1974 the Seattle-Snohomish mill was gutted by fire and rebuilt by its owners. In 1975 a severe flood struck the area, damaging over 300 homes and killing 3,500 head of livestock, but the community rallied to support those who were affected. 1976 and 1978 brought added community spirit as Snohomish High School won the AAA State football Championships under coach Dick Armstrong.

The 1980s saw renewed vigor in Snohomish when, along with other developments. In 1981, Richard Pryor came to town to film parts of the movie Bustin’ Loose. Snohomish received additional attention from Hollywood in the 1983 movie War Games.

In the mid 1980’s, the Hwy 2 bypass was completed, allowing traffic which had until then been forced to pass through the town to circumvent the city. This greatly eased the gridlock which had been a part of everyday life and allowed the city to assume the more peaceful character it has today.

In the 1990s, First Street was redeveloped to take advantage of its historic buildings as a tourist attraction. Its sidewalks were rebuilt and public restrooms added. The city hall and police station were moved away from First Street and a new fire station was built, allowing those historic buildings to be renovated as well.

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In summary, the subject area represents a bedroom community providing housing for Everett/Seattle/Eastside commuters. Today, Snohomish is a model of how cities can reinvigorate their business districts by preserving their historic charm. It has continued to grow, with much of its development spread out along the former Route 2, now known as Bickford Avenue. Snohomish has conscientiously maintained a balance between its regular businesses in modern facilities, serving the local community, and the specialty shops in the town's historic areas, serving visitors.

Market Analysis The subject property is located within the city limits of Snohomish, situated in Snohomish County. To summarize housing in the subject’s marketplace (Area 750), we have included statistical information from NWMLS for the area surrounding the subject as well as Snohomish County as a whole in the following chart:

Residential Sales Trends MLS Market Area 750

YTD % Change Statistics 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total

Avg. Sales Price Area 750 $322,000 $275,000 $246,750 $225,000 $225,000 $256,075 $287,250 $314,729 $357,000 $374,999 1.66% Snohomish County Total $345,000 $299,950 $275,000 $243,000 $260,000 $299,735 $326,360 $355,000 $390,000 $440,000 2.78% Avg. Days on Market Area 750 90 98 91 83 78 59 61 47 42 34 -5.19% Snohomish County Total 89 88 78 81 71 47 51 32 25 26 -5.90% Total # Sales Area 750 548 522 632 696 762 910 1,004 1,178 1,298 1,179 9.60% Snohomish County Total 6,291 6,644 7,092 7,771 8,961 9,799 9,677 11,303 12,410 10,641 5.76% Source: NWMLS (Nov. 2017). Statistical data is year end data for each calendar year

As shown on the chart, prices began to fall in both the subject area and Snohomish County as a whole in after 2008, rising again generally beginning in 2013. Since the 2013 timeframe, prices have climbed for both the subject’s market area and Snohomish County as a whole. The average time on the market also corresponds with the greatest amount of time and the recessionary timeframe. Since the 2011 timeframe, both the subject’s market and Snohomish County have decreased substantially in this market factor. Total number of sales bottomed out in 2009 based on the statistics above, but both the subject’s market area and Snohomish County have climbed since the 2010 timeframe for this category.

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Vacant Lots In terms of vacant land sales, we have surveyed NWMLS for the number of sales occurring within a 2- mile radius of the subject property. The following chart reflects the results:

# Land Sales - Snohomish 2-Mile Radius (MLS Data)

2009 2010 2011 2012 2013 2014 2015 2016 2017 Active/Pending

2 6 3 3 6 6 10 11 8 2

Source: NWMLS for Residential Land Sales Only - YTD as of November 2017

Of course, the data only reflects the number of properties listed through NWMLS, and we expect more off-market transactions have occurred each year. Furthermore, the data only considered vacant properties, and it is likely some properties were sold with existing improvements, but ultimately were redeveloped. As can be seen by the above data, the number of vacant land sales has fluctuated each year. Sales have climbed since the lows of 2011-12, which also somewhat corresponds to the previous chart characterizing the residential housing market.

Conclusion Overall, while the residential housing market took a lengthy and significant downturn during the late 2000’s, a recovery has been in the making. Rising sales volumes and increasing prices of improved properties are evident. This generally mirrors the rebound in the national real estate market and most other areas within the Puget Sound region.

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Part II - Factual Data

Description of the Subject Property

Site The subject of this appraisal consists the proposed street vacation of 2,368 square feet of land area. The right-of-way to be vacated is unimproved and is nearly rectangular in shape. It has a width of roughly 16 feet and length of approximately 180 feet.

Topography The subject is generally level and at grade with surrounding properties.

Access and Exposure Access to the subject property is provided by North 7th Street. This is an alleyway situated between Avenue’s A and B, within the city limits of Snohomish.

Soils No soils information was provided to the appraisers. Based on existing improvements on the adjacent properties, it is assumed the subject soils are similarly adequate for development.

Sensitive Areas While no detailed sensitive area studies of the subject was provided, conversations with city planning indicate that site specific studies would be required to determine if any sensitive areas exist. They indicate that they do not have generalized mapping indicating the presence or absence of wetlands or streams.

Utilities All utilities necessary for development currently service the subject property.

Easements/Encumbrances We have not been provided with a Title Report. However, according to the Snohomish County Council meeting minutes providing regarding the discussion of the proposed street vacation, it should be noted that there are no utilities or easements reserved for the subject property. As a result, there are no known easements/encumbrances impacting the subject.

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Zoning The subject property is zoned Medium Density Residential by the City of Snohomish. The intent of the Medium Density Residential zone is to maintain and develop adequate multi-family housing to provide a suitable living environment and the medium range in multiple-family residential density, housing types, ownership patterns, lifestyles, and economic needs of the population. The Medium Density zone shall not exceed 18 units per acre, except where low-income housing incentives are approved. It should also be conformed to areas near major transportation corridors and commercial areas. Development in this zone shall be served by adequate city water, sanitary sewer and storm drainage utilities. This zone should be located adjacent to commercial areas and shall be used as a buffer between single-family areas as well as commercial/industrial areas. The following summarizes some of the density/dimensional requirements of the Medium Density Residential zone:

Minimum Lot Size: 6,000 square feet Lot width: 50 feet Lot Coverage: 80% Open Space: 20% Maximum Height: 35 feet

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Survey & Street Vacation Right-of-Way Map

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Street Vacation Map

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Assessed Value and Real Estate Taxes As the subject property consists of a public right-of-way, it is currently tax exempt. Once vacated, the subject will be presumably assembled with the adjacent parcels as part of a larger parcel.

Improvements Description The subject property is effectively unimproved for purposes of this analysis.

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Part III - Highest and Best Use

Highest and Best Use Definition Highest and best use is defined as: 5

The reasonably probable use of property that results in the highest value…….. To be reasonably probable, a use must meet certain conditions.

A determination of highest and best use is guided by the following parameters: 1) physically possible; 2) legally permissible; 3) financially feasible; and 4) maximally productive. Highest and best use is analyzed both on an as vacant and as improved basis.

As if Vacant Physically Possible. The subject property is surrounded by primarily residential land uses at the present time, and is in close proximity to the north side of 7th Street. The subject property has all of the necessary utilities available for development, direct access from North 7th Street, and a generally level topography.

Legally Permissible. The legal constraint for the property is that of zoning, as there are no known exceptional private liens or encumbrances to restrict or limit development. As discussed in the Zoning section of this report, the site is zoned Medium Density Residential by the City of Snohomish.

Financially Feasible/Maximally Productive. The subject is within an area that includes a variety of residential uses. Considering the factors discussed above, including the subject’s zoning, location in close proximity to major arterials through the Snohomish area, as well as the current status of the real estate market, the highest and best use “as if vacant” is for the development of a residential use.

As Improved The subject consists of vacant land at the present time.

5 From The Appraisal of Real Estate, Fourteenth Edition, 2013, Appraisal Institute, page 332

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Part IV - Analyses and Conclusions to Value

Valuation As discussed throughout this report, the subject parcel is valued based on a similar utility to surrounding lands with no abnormal discount for size or shape. Considering this factor, the valuation of the subject site is obtained through an application of the Sales Comparison Approach to Value. In the case of the subject, the Cost Approach and Income Approach are not applicable.

Under the Sales Comparison Approach, the subject right-of-way is compared to sales of other similarly-zoned land within the area. Adjustments are considered for differences between the sales and the subject which includes topography, location, and zoning. Based on a comparison with the comparable sales, a value is then concluded for the subject site.

Sales Comparison Approach In valuing the subject, the subject’s market was researched for sales of sites with similar general uses. With the above factors in mind, the following sales are used for comparison in arriving at a conclusion of value for the fee simple interest in the subject property:

Comparable Land Sales

Sale Sale Size Size Price/ Sale Property/Location Date Price (ac.) (sf) Zoning SF 1 Multi-family Land 09/2017 $635,000 2.04 88,862 Comm. $7.15 1209 10th Street; City of Snohomish 2 Multi-family Land 07/2017 $235,000 0.50 21,780 MDR $10.79 721 Avenue B; City of Snohomish 3 Mixed-Use Zoned Land 04/2017 $185,000 0.32 13,939 MU $13.27 5xx Maple Avenue; City of Snohomish 4 MDR Zoned Land 11/2016 $170,000 0.16 6,996 MDR $24.30 714 Pine Avenue; City of Snohomish 5 Snohomish Mixed-Use Site 04/2016 $190,500 0.30 13,068 MU $14.58 62xx Pine Avenue; City of Snohomish Sbj. Alleyway between Avenues A & B; Snohomish 0.05 2,368 MDR Sale 2) Deducted $450k for contributory value of improvements

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LAND SALES MAP

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Discussion of Land Sales Sale 1 is the September 2017 sale of 2.04 acres of commercial zoned land situated along 10th Street in Snohomish. According to the selling broker, a feasibility study has been completed for a 30+ unit multifamily development. Although the broker indicated that there are some wetlands situated onsite, the precise amount is not known. For purposes of this assignment, we have deducted 20% from the gross site size. The property was valued based on a price per unit, finished, deducting development costs and profit to arrive at a land residual.

Sale 2 is the July 2017 sale of a 5-unit multifamily complex as well as an abutting 0.25 acres of MDR zoned land to the south. The broker indicated that there was substantial contributory value of the improvements. Based on our conversations with the city, this is part of a larger redevelopment project on the part of the owner, which includes adjacent parcels. The broker indicated that a precise breakdown of improvement contribution to land value was not known. For purposes of this assignment, we have allocated $450,000 to the improvements, resulting in a land only indication of $10.79 on a per square foot basis.

Sale 3 is the April 2017 sale of 0.32 acres of Mixed-Use zoned land situated off of Maple Avenue in Snohomish. According to the selling broker, there were no sensitive areas situated on the property, and all utilities were available at the time of sale for redevelopment. He indicated that the site was priced on a per square foot basis, and given the shape of the site, it was considered less conducive for multifamily uses. It was ultimately purchased by an abutting neighbor.

Sale 4 is the November 2016 sale of 0.16 acres of MDR zoned land situated off of Pine Avenue in Snohomish. According to the selling broker, there were no sensitive areas situated on the property, and all utilities were available at the time of sale for redevelopment. The property was ultimately purchased by a builder who constructed a duplex onsite. At $170,000, this indicates a purchase price of $24.30 on a per square foot basis.

Sale 5 is the May 2016 sale of 0.30 acres of Mixed-Use zoned land located off of Pine Avenue in Snohomish. According to the selling broker, there were no sensitive areas situated on the property, and all utilities were available at the time of sale for redevelopment. There was reportedly a 60’ Burlington Northern easement that required removal prior to the sale. The buyer reportedly spent $7,000 for removal of this easement, which has been added to the purchase price of $183,500. This indicates a price per square foot paid of $14.58.

Discussion of Adjustments Unadjusted, the sales indicate a range from $8.93 to $24.30 on a per square foot basis. In comparing each of the sales to the subject, adjustments have been considered for transaction-related factors (rights conveyed, financing, conditions of sale, and changes in market conditions), as well for differences in physical characteristics (location, access/exposure, topography, utilities, and zoning/entitlements). Upward adjustments to the comparables are required if the respective characteristic is inferior in comparison to the subject. Conversely, downward adjustments are required for superior characteristics.

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None of the sales require adjustments for rights conveyed or financing. With respect to market conditions, an upward adjustment is made to Sales 4 and 5, as they occurred in the 2016 timeframe. As discussed in the Market Analysis section of this report, market conditions have continued to improve since the timeframe in which Sales 4 and 5 occurred.

Physical characteristics, including differences in the intensity of use, location, access, view, and zoning or land use issues are now discussed and associated adjustments are reflected in the chart that follows.

In terms of location, all seven sales are considered to be similar to the subject in terms of location, as each is in close proximity to major routes, and are within the greater Snohomish area. As such, no adjustment is made to any of the sales for this category.

Most of the sales are considered similar from a topographic perspective. An upward adjustment is made to Sale 1 for the sensitive area impacts and inferior topography. There are no known sensitive areas impacting the balance of the sales.

In terms of use/zoning, the sales are quite varied. Our research revealed a limited number of MDR zoned sites similar to that of the subject. The balance; however, had a multi-family potential similar to that of the subject. Slight adjustments are made to the various zoning differences, albeit, limited based on the ultimate use.

With the exception of Sale 2, all of the comparables had a generally superior Access/Exposure when compared with the subject property.

The qualitative adjustments discussed are not meant to be precise adjustments, but rather are utilized to show the thought process of the appraisers, and factors considered in our analysis. The chart below includes an indication of whether the comparable is inferior or superior, followed by an opinion of the relative magnitude. With this in mind, the chart below summarizes the adjustments made:

Land Sales Adjustment Chart

Physical Features Sales Rights Conditions Topo/ Use/Entitl./ Access/ Cumulative Sale Price Conveyed of Sale Financing Time Location Size Sens. Areas Zoning Utilities Exposure Indication 1 $7.15 0 0 0 0 Similar No Adj. Inf(+++) Sup(-) Similar Sup(-) Inferior 2 $10.79 0 0 0 0 Similar No Adj. Similar Similar Similar Similar Similar 3 $13.27 0 0 0 0 Similar No Adj. Similar Sup(-) Similar Sup(-) Superior 4 $24.30 0 0 0 + Similar No Adj. Similar Similar Similar Sup(-) Superior 5 $14.58 0 0 0 + Similar No Adj. Similar Sup(-) Similar Sup(-) Superior

Reconciliation of Sales and Conclusion of Fee Simple Land Value The sales used for comparison occurred between early 2016 and September 2017, with the majority of sales occurring in the 2017 timeframe. Prior to adjustments, the sales indicate a relatively wide range of $7.15 to $24.30 on a per square foot basis. All of the sales are located in the Snohomish area.

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Based on our adjustment process, the comparable sales indicate a value, overall, above $7.15 per square foot (Comparable 1) and below $13.27 per square foot (Comparable 3). After adjustments, a price per square foot for the subject toward the middle of the range is indicated. Considering these factors, a value for the subject at $10.50 per square foot is concluded. Applying this to the subject right-of-way to be vacated, indicates a total fee simple land value conclusion via the Sales Comparison Approach as follows:

2,368 SF @ $10.50/SF= $24,864 ROUNDED $25,000

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General Assumptions and Limiting Conditions

This appraisal is subject to the following limiting conditions:

1. The legal description – if furnished to us – is assumed to be correct.

2. No responsibility is assumed for legal matters, questions of survey or title, soil or subsoil conditions, engineering, availability or capacity of utilities, or other similar technical matters. The appraisal does not constitute a survey of the property appraised. All existing liens and encumbrances have been disregarded and the property is appraised as though free and clear, under responsible ownership and competent management unless otherwise noted.

3. Unless otherwise noted, the appraisal will value the property as though free of contamination. Valbridge Property Advisors | Puget Sound will conduct no hazardous materials or contamination inspection of any kind. It is recommended that the client hire an expert if the presence of hazardous materials or contamination poses any concern.

4. The stamps and/or consideration placed on deeds used to indicate sales are in correct relationship to the actual dollar amount of the transaction.

5. Unless otherwise noted, it is assumed there are no encroachments, zoning violations or restrictions existing in the subject property.

6. The appraisers are not required to give testimony or attendance in court by reason of this appraisal, unless previous arrangements have been made.

7. Unless expressly specified in the engagement letter, the fee for this appraisal does not include the attendance or giving of testimony by Appraiser at any court, regulatory, or other proceedings, or any conferences or other work in preparation for such proceeding. If any partner or employee of Valbridge Property Advisors | Valbridge Property Advisors | Puget Sound is asked or required to appear and/or testify at any deposition, trial, or other proceeding about the preparation, conclusions or any other aspect of this assignment, client shall compensate Appraiser for the time spent by the partner or employee in appearing and/or testifying and in preparing to testify according to the Appraiser’s then current hourly rate plus reimbursement of expenses.

8. The values for land and/or improvements, as contained in this report, are constituent parts of the total value reported and neither is (or are) to be used in making a summation appraisal of a combination of values created by another appraiser. Either is invalidated if so used.

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9. The dates of value to which the opinions expressed in this report apply are set forth in this report. We assume no responsibility for economic or physical factors occurring at some point at a later date, which may affect the opinions stated herein. The forecasts, projections, or operating estimates contained herein are based on current market conditions and anticipated short-term supply and demand factors and are subject to change with future conditions.

10. The sketches, maps, plats and exhibits in this report are included to assist the reader in visualizing the property. The appraiser has made no survey of the property and assumed no responsibility in connection with such matters.

11. The information, estimates and opinions, which were obtained from sources outside of this office, are considered reliable. However, no liability for them can be assumed by the appraiser.

12. Possession of this report, or a copy thereof, does not carry with it the right of publication. Neither all, nor any part of the content of the report, or copy thereof (including conclusions as to property value, the identity of the appraisers, professional designations, reference to any professional appraisal organization or the firm with which the appraisers are connected), shall be disseminated to the public through advertising, public relations, news, sales, or other media without prior written consent and approval.

13. No claim is intended to be expressed for matters of expertise that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers. We claim no expertise in areas such as, but not limited to, legal, survey, structural, environmental, pest control, mechanical, etc.

14. This appraisal was prepared for the sole and exclusive use of the client for the function outlined herein. Any party who is not the client or intended user identified in the appraisal or engagement letter is not entitled to rely upon the contents of the appraisal without express written consent of Valbridge Property Advisors | Puget Sound and Client. The Client shall not include partners, affiliates, or relatives of the party addressed herein. The appraiser assumes no obligation, liability or accountability to any third party.

15. Distribution of this report is at the sole discretion of the client, but third-parties not listed as an intended user on the face of the appraisal or the engagement letter may not rely upon the contents of the appraisal. In no event shall client give a third-party a partial copy of the appraisal report. We will make no distribution of the report without the specific direction of the client.

16. This appraisal shall be used only for the function outlined herein, unless expressly authorized by Valbridge Property Advisors | Puget Sound.

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17. This appraisal shall be considered in its entirety. No part thereof shall be used separately or out of context.

18. Unless otherwise noted in the body of this report, this appraisal assumes that the subject property does not fall within the areas where mandatory flood insurance is effective. Unless otherwise noted, we have not completed nor have we contracted to have completed an investigation to identify and/or quantify the presence of non-tidal wetland conditions on the subject property. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination.

19. The flood maps are not site specific. We are not qualified to confirm the location of the subject property in relation to flood hazard areas based on the FEMA Flood Insurance Rate Maps or other surveying techniques. It is recommended that the client obtain a confirmation of the subject’s flood zone classification from a licensed surveyor.

20. If the appraisal is for mortgage loan purposes 1) we assume satisfactory completion of improvements if construction is not complete, 2) no consideration has been given for rent loss during rent-up unless noted in the body of this report, and 3) occupancy at levels consistent with our “Income and Expense Projection” are anticipated.

21. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering which may be required to discover them.

22. Our inspection included an observation of the land and improvements thereon only. It was not possible to observe conditions beneath the soil or hidden structural components within the improvements. We inspected the buildings involved, and reported damage (if any) by termites, dry rot, wet rot, or other infestations as a matter of information, and no guarantee of the amount or degree of damage (if any) is implied. Condition of heating, cooling, ventilation, electrical and plumbing equipment is considered to be commensurate with the condition of the balance of the improvements unless otherwise stated. Should the client have concerns in these areas, it is the client’s responsibility to order the appropriate inspections. The appraiser does not have the skill or expertise to make such inspections and assumes no responsibility for these items.

23. This appraisal does not guarantee compliance with building code and life safety code requirements of the local jurisdiction. It is assumed that all required licenses, consents, certificates of occupancy or other legislative or administrative authority from any local, state or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value conclusion contained in this report is based unless specifically stated to the contrary.

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24. When possible, we have relied upon building measurements provided by the client, owner, or associated agents of these parties. In the absence of a detailed rent roll, reliable public records, or “as-built” plans provided to us, we have relied upon our own measurements of the subject improvements. We follow typical appraisal industry methods; however, we recognize that some factors may limit our ability to obtain accurate measurements including, but not limited to, property access on the day of inspection, basements, fenced/gated areas, grade elevations, greenery/shrubbery, uneven surfaces, multiple story structures, obtuse or acute wall angles, immobile obstructions, etc. Professional building area measurements of the quality, level of detail, or accuracy of professional measurement services are beyond the scope of this appraisal assignment.

25. We have attempted to reconcile sources of data discovered or provided during the appraisal process, including assessment department data. Ultimately, the measurements that are deemed by us to be the most accurate and/or reliable are used within this report. While the measurements and any accompanying sketches are considered to be reasonably accurate and reliable, we cannot guarantee their accuracy. Should the client desire a greater level of measuring detail, they are urged to retain the measurement services of a qualified professional (space planner, architect or building engineer). We reserve the right to use an alternative source of building size and amend the analysis, narrative and concluded values (at additional cost) should this alternative measurement source reflect or reveal substantial differences with the measurements used within the report.

26. In the absence of being provided with a detailed land survey, we have used assessment department data to ascertain the physical dimensions and acreage of the property. Should a survey prove this information to be inaccurate, we reserve the right to amend this appraisal (at additional cost) if substantial differences are discovered.

27. If only preliminary plans and specifications were available for use in the preparation of this appraisal, then this appraisal is subject to a review of the final plans and specifications when available (at additional cost) and we reserve the right to amend this appraisal if substantial differences are discovered.

28. Unless otherwise stated in this report, the value conclusion is predicated on the assumption that the property is free of contamination, environmental impairment or hazardous materials. Unless otherwise stated, the existence of hazardous material was not observed by the appraiser and the appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required for discovery. The client is urged to retain an expert in this field, if desired.

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29. The Americans with Disabilities Act (“ADA”) became effective January 26, 1992. We have not made a specific compliance survey of the property to determine if it is in conformity with the various requirements of the ADA. It is possible that a compliance survey of the property, together with an analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this could have a negative effect on the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible noncompliance with the requirements of ADA in developing an opinion of value.

30. This appraisal applies to the land and building improvements only. The value of trade fixtures, furnishings, and other equipment, or subsurface rights (minerals, gas, and oil) were not considered in this appraisal unless specifically stated to the contrary.

31. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated, unless specifically stated to the contrary.

32. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute prediction of future operating results. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance.

33. Any estimate of insurable value, if included within the scope of work and presented herein, is based upon figures developed consistent with industry practices. However, actual local and regional construction costs may vary significantly from our estimate and individual insurance policies and underwriters have varied specifications, exclusions, and non-insurable items. As such, we strongly recommend that the Client obtain estimates from professionals experienced in establishing insurance coverage. This analysis should not be relied upon to determine insurance coverage and we make no warranties regarding the accuracy of this estimate.

34. The data gathered in the course of this assignment (except data furnished by the Client) shall remain the property of the Appraiser. The appraiser will not violate the confidential nature of the appraiser-client relationship by improperly disclosing any confidential information furnished to the appraiser. Notwithstanding the foregoing, the Appraiser is authorized by the client to disclose all or any portion of the appraisal and related appraisal data to appropriate representatives of the Appraisal Institute if such disclosure is required to enable the appraiser to comply with the Bylaws and Regulations of such Institute now or hereafter in effect.

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35. You and Valbridge Property Advisors | Puget Sound both agree that any dispute over matters in excess of $5,000 will be submitted for resolution by arbitration. This includes fee disputes and any claim of malpractice. The arbitrator shall be mutually selected. If Valbridge Property Advisors | Puget Sound and the client cannot agree on the arbitrator, the presiding head of the Local County Mediation & Arbitration panel shall select the arbitrator. Such arbitration shall be binding and final. In agreeing to arbitration, we both acknowledge that, by agreeing to binding arbitration, each of us is giving up the right to have the dispute decided in a court of law before a judge or jury. In the event that the client, or any other party, makes a claim against Valbridge Property Advisors | Puget Sound or any of its employees in connections with or in any way relating to this assignment, the maximum damages recoverable by such claimant shall be the amount actually received by Valbridge Property Advisors | Puget Sound for this assignment, and under no circumstances shall any claim for consequential damages be made.

36. Valbridge Property Advisors | Puget Sound shall have no obligation, liability, or accountability to any third party. Any party who is not the “client” or intended user identified on the face of the appraisal or in the engagement letter is not entitled to rely upon the contents of the appraisal without the express written consent of Valbridge Property Advisors | Puget Sound. “Client” shall not include partners, affiliates, or relatives of the party named in the engagement letter. Client shall hold Valbridge Property Advisors | Puget Sound and its employees harmless in the event of any lawsuit brought by any third party, lender, partner, or part-owner in any form of ownership or any other party as a result of this assignment. The client also agrees that in case of lawsuit arising from or in any way involving these appraisal services, client will hold Valbridge Property Advisors | Puget Sound harmless from and against any liability, loss, cost, or expense incurred or suffered by Valbridge Property Advisors | Puget Sound in such action, regardless of its outcome.

37. The Valbridge Property Advisors office responsible for the preparation of this report is independently owned and operated by Valbridge Property Advisors | Puget Sound. Neither Valbridge Property Advisors, Inc., nor any of its affiliates has been engaged to provide this report. Valbridge Property Advisors, Inc. does not provide valuation services, and has taken no part in the preparation of this report.

38. If any claim is filed against any of Valbridge Property Advisors, Inc., a Florida Corporation, its affiliates, officers or employees, or the firm providing this report, in connection with, or in any way arising out of, or relating to, this report, or the engagement of the firm providing this report, then (1) under no circumstances shall such claimant be entitled to consequential, special or other damages, except only for direct compensatory damages, and (2) the maximum amount of such compensatory damages recoverable by such claimant shall be the amount actually received by the firm engaged to provide this report.

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39. This report and any associated work files may be subject to evaluation by Valbridge Property Advisors, Inc., or its affiliates, for quality control purposes.

40. Acceptance and/or use of this appraisal report constitutes acceptance of the foregoing general assumptions and limiting conditions.

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Certification – Murray Brackett, MAI

I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. My engagement in this assignment was not contingent upon developing or reporting predetermined results. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. My analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. I have not made a personal inspection of the property that is the subject of this report. No one provided significant real property appraisal assistance to the person signing this certification, unless otherwise noted. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, I have completed the continuing education program for Designated Members of the Appraisal Institute.

November 30, 2017 Date of Value: ______S. Murray Brackett, MAI State Cert. #27011-1100853

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Certification – David Coleman, Senior Associate

I certify that, to the best of my knowledge and belief:

1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. 5. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. My analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 9. I have made a personal inspection of the property that is the subject of this report. 10. No one provided significant real property appraisal assistance to the person signing this certification, unless otherwise noted. 11. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 13. As of the date of this report, I have completed the Standards and Ethics Education Requirements for Practicing Affiliates of the Appraisal Institute. 14. As of the date of this report, I have not completed the continuing education program for Practicing Affiliates of the Appraisal Institute.

November 30, 2017 Date of Value: ______David Coleman State Cert. #1101543

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Addenda

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Comparable Data

LAND SALE NO. 1

Property Identification Property Type Residential Land Address 1209 10th Street City, State Zip Snohomish, Washington County Snohomish Section, Township, Range 07 28 06 Tax ID 00-4877-000-019-03

Sale Data Seller C&D Investments Buyer PM 10th Avenue LLC Sale Date 09/2017 Sale Price $635,000 Analysis Price $635,000 Deed Type Warranty Deed Reference No. E091233 Property Rights Transferred Fee Simple Market Time N/A Conditions of Sale Market Verified By Dave Coleman Verification With Charles Grenard, broker Verification Date 11/2017 Verification Phone 206 427 2601

Land Data Land Size 2.04 (Gross) Acres Topography Downward sloping Utilities All available Shape Irregular Access Direct In Flood Plain? No Zoning Code Comm.

Indicators Analysis Price/SF $7.15 per SF Remarks

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This is the September 2017 sale of 2.04 acres of commercial zoned land situated along 10th Street in Snohomish. According to the selling broker, a feasibility study has been completed for a 30+ unit multifamily development. Although the broker indicated that there are some wetlands situated onsite, the precise amount is not known. For purposes of this assignment, we have deducted 20% from the gross site size. The property was valued based on a price per unit, finished, deducting development costs and profit to arrive at a land residual.

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LAND SALE NO. 2

Property Identification Property Type Residential Land Address 721 Avenue B City, State Zip Snohomish, Washington County Snohomish Section, Township, Range 07 28 06 Tax ID 00-4444-007-022-00; -007-025-00

Sale Data Seller Gilpin Investment LLC Buyer Perasso II LLC Sale Date 07/2017 Sale Price $685,000 Analysis Price $685,000 Deed Type Warranty Deed Reference No. E087983 Property Rights Transferred Fee Simple Market Time N/A Conditions of Sale Market Verified By Dave Coleman Verification With Charles Grenard, broker Verification Date 11/2017 Verification Phone 206 427 2601

Land Data Land Size 0.50 acres Topography Mild downward slope Utilities All available Shape Rectangular Access Direct In Flood Plain? No Zoning Code MDR

Indicators Analysis Price/SF $10.79 per SF (excl. contributory value of improvements)

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Remarks This is the July 2017 sale of a 5-unit multifamily complex as well as an abutting 0.25 acres of MDR zoned land to the south. The broker indicated that there was substantial contributory value of the improvements. Based on our conversations with the city, this is part of a larger redevelopment project on the part of the owner, which includes adjacent parcels. The broker indicated that a precise breakdown of improvement contribution to land value was not known. For purposes of this assignment, we have allocated $450,000 to the improvements, resulting in a land only indication of $10.79 on a per square foot basis.

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LAND SALE NO. 3

Property Identification Property Type Residential Land Address 5xx Maple Avenue City, State Zip Snohomish, Washington County Snohomish Section, Township, Range 18 28 06 Tax ID 28-0618-002-010-00

Sale Data Seller Sharon Lund Buyer North Co. Leasing LLC Sale Date 04/2017 Sale Price $185,000 Analysis Price $185,000 Deed Type Warranty Deed Reference No. E083269 Property Rights Transferred Fee Simple Market Time N/A Conditions of Sale Market Verified By Dave Coleman Verification With Raymond Cook, broker Verification Date 11/2017 Verification Phone 425 238 0282

Land Data Land Size 0.32 acres Topography Level Utilities All available Shape Irregular Access Direct In Flood Plain? No Zoning Code MU

Indicators Analysis Price/SF $13.27 per SF

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Remarks This is the April 2017 sale of 0.32 acres of Mixed-Use zoned land situated off of Maple Avenue in Snohomish. According to the selling broker, there were no sensitive areas situated on the property, and all utilities were available at the time of sale for redevelopment. He indicated that the site was priced on a per square foot basis, and given the shape of the site, it was considered less conducive for multifamily uses. It was ultimately purchased by an abutting neighbor.

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LAND SALE NO. 4

Property Identification Property Type Residential Land Address 714 Pine Ave City, State Zip Snohomish, Washington County Snohomish Section, Township, Range 07 28 06 Tax ID 00-4359-002-017-00

Sale Data Seller Clarence Robertson Sale Date 11/2016 Sale Price $170,000 Analysis Price $170,000 Deed Type Warranty Deed Property Rights Transferred Fee Simple Market Time N/A Conditions of Sale Market Verified By Dave Coleman Verification With Barry McGee, broker Verification Date 11/2017 Verification Phone 425 870 1901

Land Data Land Size 0.16 acres Topography Level Utilities All available Shape Rectangular Access Direct In Flood Plain? No Zoning Code MDR

Indicators Analysis Price/SF $24.30 per SF

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Remarks This is the November 2016 sale of 0.16 acres of MDR zoned land situated off of Pine Avenue in Snohomish. According to the selling broker, there were no sensitive areas situated on the property, and all utilities were available at the time of sale for redevelopment. The property was ultimately purchased by a builder who constructed a duplex onsite. At $170,000, this indicates a purchase price of $24.30 on a per square foot basis.

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LAND SALE NO. 5

Property Identification Property Type Residential Land Address 700 Pine Ave City, State Zip Snohomish, Washington County Snohomish Section, Township, Range 18 28 06 Tax ID 00-4359-002-025-00

Sale Data Seller Jan Neil Buyer Charles & Elise Miller Sale Date 04/2016 Sale Price $183,500 Analysis Price $190,500 Deed Type Warranty Deed Reference No. E065585 Property Rights Transferred Fee Simple Market Time N/A Conditions of Sale Market Verified By Dave Coleman Verification With Laura Huntington, broker Verification Date 7/2016 Verification Phone 425 754 4518

Land Data Land Size 0.30 acres Topography Level Utilities All available Shape Primarily rectangular Access Direct In Flood Plain? No Zoning Code MU

Indicators Analysis Price/SF $14.58 per SF

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Remarks This is the May 2016 sale of 0.30 acres of Mixed-Use zoned land located off of Pine Avenue in Snohomish. According to the selling broker, there were no sensitive areas situated on the property, and all utilities were available at the time of sale for redevelopment. There was reportedly a 60’ Burlington Northern easement that required removal prior to the sale. The buyer reportedly spent $7,000 for removal of this easement, which has been added to the purchase price of $183,500. This indicates a price per square foot paid of $14.58.

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Qualifications

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Qualifications of S. Murray Brackett, MAI Senior Managing Director Valbridge Property Advisors  Puget Sound

Education Bachelor of Arts in Business Administration, Western Washington University, 1985, with an emphasis on real estate.

Professional Education Appraisal Courses: All appraisal courses required for MAI designation.

Seminars and Continuing Education (abbreviated summary of coursework): • Easement Valuation • UASFLA Seminar (Yellow Book) • Real Estate Law • Appraising From Blueprints • Complexities of Predevelopment Land • The Appraiser as Expert Witness • Litigation Skills for the Appraiser • The New Frontier of Takings Law • Partial Acquisitions Workshop • Condemnation Appraisal & Mock Trial • Conservation Easement Appraisal - Certificate Course

Professional Affiliation Member, Appraisal Institute. Received MAI Designation May 2, 1997 (Member No. 11,258) Past President (2003), Seattle Chapter of the Appraisal Institute Member, International Right-of-Way Association Associate Member, Washington Airport Manager’s Association

Appraisal Experience Senior Managing Director and Principal with Valbridge Property Advisors | Puget Sound. Responsibilities include the full range of residential, retail, commercial and industrial real estate valuation. Retail experience includes the full range of properties from single sites to large neighborhood retail complexes. Office and Industrial properties exceeding 100,000 square feet have been prepared for various purposes. Appraisals have been prepared on such diverse properties such as airport-related facilities, park lands, subdivisions and golf courses, as well as traditional commercial and industrial improved property. Improved and Unimproved valuations have been performed for acquisitions in fee, leased fee and leasehold interests, partial takings, and various partial interests including the following: conservation easements, utility easements, subsurface easements, air-rights/avigation easements, and minority interests. Numerous Appraisals have been prepared for use in litigation, including eminent domain dispute resolution, condemnation and inverse condemnations. UASFLA-compliant Appraisals have been prepared for a wide variety of agencies on a wide range of property types.

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S. MURRAY BRACKETT, MAI (cont.) Qualified as an expert witness in King, Kitsap and Pierce County Superior Courts, US District Court, and Federal Bankruptcy Court. Geographic experience includes assignments in Washington, California, Oregon, Idaho, Nebraska, Iowa, Kansas, South Dakota, Alaska, and British Columbia.

Other Experience Instructor: Instructor, Income Property Appraisal, Lk Wa. Voc-Tec. Qualified Level 3 Facilitator, IRWA Presentations: October 2003 - WPMA Conference – “The Valuation of Non-Water Dependent Properties.” September, 2009 - Valuation of Airport Properties, WAMA December 9, 2010 - AI-Seattle Fall R.E. Conference – Panelist/presenter for Appraisal Issues relating to Partial Acquisitions in Eminent Domain cases.

Representative Client List Cities/Counties Cities of Bellevue, Burien, Kirkland, Seattle, Kent, Everett, Renton, Auburn, Arlington, Anacortes, Tacoma, Mount Vernon, North Bend, Snoqualmie, Lake Forest Park, Kenmore, Bothell, Lynnwood, Port Angeles, Maple Valley, Puyallup, Woodinville and SeaTac. Counties of King, Snohomish, Pierce, Kitsap, Thurston, and Skagit.

Government Ports of Seattle, Everett, Olympia, Grays Harbor, Bremerton, Port Angeles, and Friday Harbor. Washington State Parks, WSDOT (Approved Appraiser List), DNR, Federal Aviation Administration, Internal Revenue Service, King County DNR, GSA, U.S. Navy, San Juan County Land Bank, Northshore School District, Snohomish School District, Sound Transit, USACE.

Financial Institutions Bank of America, U.S. Bancorp, Key Bank, Wells Fargo Trust, Commerce Bank, Homestreet Bank, Umpqua (Banner) Bank, Charter Bank, Union Bank.

Airports Sea-Tac International Airport, Renton Municipal, Auburn Municipal, Snohomish County Airport (Paine Field), Arlington Municipal, Bellingham International, Olympia Airport, William Fairchild (Port Angeles), Spokane Int’l, Centralia/Chehalis, Bremerton National, Pullman Airport, and Friday Harbor Airport.

Corporations and Non Profits Weyerhaeuser Company, WRECO, Tramco, Plum Creek, McDonalds Corporation, Gull Industries, Puget Sound Energy, Development Services of America (DSA), FSA, Winmar Company, Jr. Achievement, Lowe Enterprises, PACCAR, Inc., The Trust for Public Land, Cascade Land Conservancy, Fletcher General Construction, Manke Lumber Company, Simpson Timber Company, New Ventures Group, OTAK, American Forest Resources, HDR, Inc., Hancock Natural Resources Group, Sierra Pacific Industries, Quadrant, Port Blakely Communities, Lowe Enterprises, Parsons Brinckerhoff, CH2M-Hill.

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S. MURRAY BRACKETT, MAI (cont.)

Attorneys Hillis, Clark, Martin & Peterson; Kenyon Disend; Perkins Coie; Tousley Brain; Inslee Best; Graham and Dunn; Chmelik, Sitkin & Davis; Foster Pepper; Short Cressman; Davis Wright & Tremaine; Betts Patterson; Karr Tuttle Campbell; Anderson Hunter; Riddell Williams; Williams Kastner; Krutch Lindell; Curran Mendoza; Williams and Williams; and King County Prosecuting Attorney.

State Certification Number - General: 27011-1100853 Expiration: 11/21/19 (Revised 11/21/17)

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Qualifications of David Coleman Senior Appraiser Valbridge Property Advisors  Puget Sound

Education Bachelor of Arts in Economic/Urban Geography with a focus in real estate development processes and project financial feasibility analysis, University of Washington, 1995.

Professional Education Appraisal/Real Estate Courses: • Uniform Standards Professional Appraisal Practice (USPAP); (Mykut Real Estate, 2017) • Defensible Appraising (Mykut Real Estate, April 2015) • Financial Analysis for Commercial Investment Real Estate (CCIM Institute, 2014) • Mortgage Fraud (Mykut Real Estate, April 2011) • Subdivision Valuation (Appraisal Institute, April 2011) • Small Hotel/Motel Valuation (Appraisal Institute, April 2011) • Advanced Sales Comparison & Cost Approaches (Appraisal Institute, 2008) • Highest & Best Use and Market Analysis (Appraisal Institute Course 520, September 2006) • Business Practices and Ethics (Appraisal Institute Course 420, April 2005) • Report Writing and Valuation Analysis (Appraisal Institute Course 540, August 2003) • Income Capitalization (Appraisal Institute Course 310, March 2000) • Foundations of Real Estate Appraisal (North Seattle Community College, March 2000) • Real Estate Appraisal Procedures (Bellevue Community College, Fall 1999)

Appraisal Experience Associate Appraiser with Valbridge Property AdvisorsPuget Sound. Responsibilities have included a variety of commercial, residential, and industrial real estate valuations. Appraisals have been prepared on such diverse properties such as park lands, airport property, subdivisions, sensitive areas, and easements. Undeveloped land valuations have been performed for acquisitions in fee, as well as, various partial interests including the following: conservation easements, utility easements, and right-of-way.

Summary of Real Estate Experience Past: 05/98 – 01/02 & 11/02 to Current: Associate Appraiser with Valbridge Property AdvisorsPuget Sound (formerly Bruce C. Allen & Associates, Inc.)

2002: Pacific Appraisal Associates (Dennis Johnson, MAI - Wenatchee). Associate Commercial Appraiser concentrating on a variety of right-of-way projects, as well as commercial land valuations (including agricultural). Responsibilities included a variety of commercial, rural residential, and agricultural valuations. Undeveloped land valuations primarily consisted of partial interests for right-of-way and conservation easements.

1996-1998: Martin Smith Real Estate Services. Included a variety of duties and departments that comprised of Lease Administration and Assistant Operations/Property manager. Responsibilities included the daily operations of implementing new leases, rent increases, tenant reimbursements and lease renewals for over 20 Martin Smith managed properties. Other duties included the responsibility for overseeing repairs and maintenance requests for over 6 million square feet of office space and the renovation of the company’s communications system with building engineers.

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DAVID COLEMAN, SENIOR APPRAISER (cont.)

1995-1996: Sarkowsky/Loebisser/Fagerholm (SLF) Management Company. Assistant Property Manager for The Plaza at Yarrow Bay, a Class A office building in Kirkland, Washington, and home to many prominent tenants such as AT&T Wireless, McDonald’s Corp. and Novell. Responsibilities included the day-to-day management of the project and it’s tenants, which included the coordination of cost estimates and contract work on the project.

Representative Client List Cities Counties Arlington King County Bellevue King County Office of Open Space Bellingham Snohomish County Bothell Whatcom County Issaquah Pierce County Kenmore Kirkland Maple Valley Redmond Seattle Sammamish SeaTac

Public Agencies Private Agencies Attorney General of Washington Bogle & Gates Puget Sound Energy Butcher, Willis, & Ratliff Corp. Seattle City Light Graham & Dunn Forterra Jack McCann Company Trust for Public Land Jones & Stokes Engineering United States Navy JRCO Partnership Washington State Department of Transportation Lane & Associates Lang, Sly, Conner Development Airports Arlington Municipal Auburn Municipal OTAK Chehalis-Centralia Pharos Port of Olympia Stinson Lane Vineyards Port of Port Angeles Weyerhaeuser Company Renton Municipal WRECO Snohomish County (Paine Field)

Banks Banner Bank Charter Bank Commerce Bank Frontier Bank

State Certification Number – General: 27011-1101543 Expiration: 05/02/19 (Revised 11/22/2017)

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City Council Meeting January 16, 2018 96 ACTION ITEM 5c

Date: January 16, 2018

To: City Council

From: Debbie Burton, Finance Director

Subject: Authorize Mayor to Sign Agreement with Tyler Technologies for Financial System and Permitting Software

PURPOSE: The purpose of this agenda item is for Council’s consideration to authorize the Mayor to sign an agreement with Tyler Technologies for financial system and permitting software replacement.

BACKGROUND: The City of Snohomish implemented Springbrook software Version 6 in 2009. Springbrook software modules used for financial, information tracking, and reporting include; general ledger and financial suite, utility billing, meter reading, payroll, business licensing, building permits, human resources, cash receipting, application server, and access agent maintenance. Springbrook software had over 17 Version 6 updates since the City’s 2009 implementation, and a significant version migration to Version 7 which transitioned the software to the .NET framework. The City had not updated its Version 6 software and in 2014, the software vendor informed the City that Version 6 software would no longer be supported and recommended migration to Version 7. A Version 7 migration was planned for implementation in August of 2015. The Springbrook Version 7 migration was unsuccessful, as Springbrook technical consultants were unable to install the Version 7 software as specified in the migration agreement due to latency and other issues deem unacceptable to the City. Additional data conversion issues were also problematic to the City as some existing building permit and business license data was not to be converted and the City was never made aware of this issue during the implementation planning phase prior to the August 2015 proposed migration. Due to the software vendor default, the City notified Springbrook of the intent to terminate the maintenance and migration agreements in January 2016. Since that time, the City has been operating with no customer service support from Springbrook and there have been no updates.

ANALYSIS: Since 2016, the Finance Director and IT Manager have been evaluating vendors that offer financial system and permitting software for government entities as well as contacting other cities to understand their experiences and thoughts about the software applications they are utilizing. Staff requested presentations from four software providers, but only received responses from two. Following this initial work, the City invited Tyler Technologies and Banyon Systems to present their product to staff. From these initial presentations, staff selected Tyler Technologies as the preferred software system and scheduled additional presentations to be made to all staff members in Finance and Planning to ensure the day-to-day users were satisfied the software would meet their needs. The Tyler Technologies product selected for the financial system is called InCode and for permitting is called Energov. Currently the government agencies that have implemented Tyler Technologies products are Asotin, Garfield, and Columbia Counties, Kennewick Irrigation District, City of Kenmore, City of Battle Ground, City of Washougal, Renton, Lacey and Spokane Valley Fire Districts, and Timberland Regional Library. Staff utilized the City’s membership in National Joint Powers Alliance (NJPA) of which Tyler Technologies is an approved vendor. The NJPA Request for Proposal (RFP) standards meet or exceed the City’s requirements and are compliant with the State of Washington’s procurement standards.

City Council Meeting January 16, 2018 97 ACTION ITEM 5c

The key features of the selected software is that it is a fully functioning, supported system from a stable vendor that provides a hosted (cloud based) product allowing for City business continuity in a local disaster. Having a hosted based product assures new updates and features are made available sooner and with less impact to users. It will also streamline our internal work processes related to payroll, accounts payable, and human resources. The software offers a robust system-wide search capability. This software will allow the City to enhance its online (e- government) services with integrated online payment options and citizen and customer self- service portals. The permitting system is GIS based. An improved and enhanced reporting system will allow staff to easily create custom reports and allow users to create personal dashboards so they can quickly access the information and modules they frequently use. To view more information on all the robust features of the products visit www.tylertech.com (InCode and EnerGov.).

The implementation investment includes full conversion of the data from our current system.

STRATEGIC PLAN REFERENCE: This action is not related to any specific Strategic Plan initiatives.

BUDGET IMPACTS: One time investment cost of $109,020 plus travel for implementation and conversion (approximately $5,000). Approximately 75% of the funds are allocated from the General Fund and 25% from the Utility Fund. The annual recurring fees of $35,351 plus $575/user (estimated at about 10 users) will be fixed for seven years. Funds were approved in 2018 budget.

RECOMMENDATION: That the City Council AUTHORIZE the Mayor to sign an agreement with Tyler Technologies for financial system and permitting software

ATTACHMENT: Tyler Technologies Agreement

City Council Meeting January 16, 2018 98 SOFTWARE AS A SERVICE AGREEMENT

This Software as a Service Agreement is made between Tyler Technologies, Inc. and Client.

WHEREAS, Client selected Tyler to provide certain products and services set forth in the Investment Summary, including providing Client with access to Tyler’s proprietary software products, and Tyler desires to provide such products and services under the terms of this Agreement;

NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and promises set forth in this Agreement, Tyler and Client agree as follows:

SECTION A – DEFINITIONS

 “Agreement” means this Software as a Services Agreement.  “Business Travel Policy” means our business travel policy. A copy of our current Business Travel Policy is attached as Schedule 1 to Exhibit B.  “Client” means City of Snohomish, WA.  “Data” means your data necessary to utilize the Tyler Software.  “Data Storage Capacity” means the contracted amount of storage capacity for your Data identified in the Investment Summary.  “Defect” means a failure of the Tyler Software to substantially conform to the functional descriptions set forth in our written proposal to you, or their functional equivalent. Future functionality may be updated, modified, or otherwise enhanced through our maintenance and support services, and the governing functional descriptions for such future functionality will be set forth in our then‐current Documentation.  “Defined Concurrent Users” means the number of concurrent users that are authorized to use the SaaS Services. The Defined Concurrent Users for the Agreement are five users.  “Developer” means a third party who owns the intellectual property rights to Third Party Software.  “Documentation” means any online or written documentation related to the use or functionality of the Tyler Software that we provide or otherwise make available to you, including instructions, user guides, manuals and other training or self‐help documentation.  “Effective Date” means the date on which your authorized representative signs the Agreement.  “Force Majeure” means an event beyond the reasonable control of you or us, including, without limitation, governmental action, war, riot or civil commotion, fire, natural disaster, or any other cause that could not with reasonable diligence be foreseen or prevented by you or us.  “Investment Summary” means the agreed upon cost proposal for the products and services attached as Exhibit A.  “Invoicing and Payment Policy” means the invoicing and payment policy. A copy of our current Invoicing and Payment Policy is attached as Exhibit B.  “SaaS Fees” means the fees for the SaaS Services identified in the Investment Summary.  “SaaS Services” means software as a service consisting of system administration, system management, and system monitoring activities that Tyler performs for the Tyler Software, and

City Council Meeting January 16, 2018 99 includes the right to access and use the Tyler Software, receive maintenance and support on the Tyler Software, including Downtime resolution under the terms of the SLA, and Data storage and archiving. SaaS Services do not include support of an operating system or hardware, support outside of our normal business hours, or training, consulting or other professional services.  “SLA” means the service level agreement. A copy of our current SLA is attached hereto as Exhibit C.  “Statement of Work” means the industry standard implementation plan describing how our professional services will be provided to implement the Tyler Software, and outlining your and our roles and responsibilities in connection with that implementation. The Statement of Work is attached as Exhibit E.  “Support Call Process” means the support call process applicable to all of our customers who have licensed the Tyler Software. A copy of our current Support Call Process is attached as Schedule 1 to Exhibit C.  “Third Party Terms” means, if any, the end user license agreement(s) or similar terms for the Third Party Software, as applicable.  “Third Party Hardware” means the third party hardware, if any, identified in the Investment Summary.  “Third Party Products” means the Third Party Software and Third Party Hardware.  “Third Party Software” means the third party software, if any, identified in the Investment Summary.  “Tyler” means Tyler Technologies, Inc., a Delaware corporation.  “Tyler Software” means our proprietary software, including any integrations, custom modifications, and/or other related interfaces identified in the Investment Summary and licensed by us to you through this Agreement.  “we”, “us”, “our” and similar terms mean Tyler.  “you” and similar terms mean Client.

SECTION B – SAAS SERVICES

1. Rights Granted. We grant to you the non‐exclusive, non‐assignable limited right to use the SaaS Services solely for your internal business purposes for the number of Defined Concurrent Users only. The Tyler Software will be made available to you according to the terms of the SLA. You acknowledge that we have no delivery obligations and we will not ship copies of the Tyler Software as part of the SaaS Services. You may use the SaaS Services to access updates and enhancements to the Tyler Software, as further described in Section C(8).

2. SaaS Fees. You agree to pay us the SaaS Fees. Those amounts are payable in accordance with our Invoicing and Payment Policy. The SaaS Fees are based on the number of Defined Concurrent Users and amount of Data Storage Capacity. You may add additional concurrent users or additional data storage capacity on the terms set forth in Section H(1). In the event you regularly and/or meaningfully exceed the Defined Concurrent Users or Data Storage Capacity, we reserve the right to charge you additional fees commensurate with the overage(s).

3. Ownership.

3.1 We retain all ownership and intellectual property rights to the SaaS Services, the Tyler Software, and anything developed by us under this Agreement. You do not acquire under this Agreement any license to use the Tyler Software in excess of the scope and/or duration of the SaaS Services.

City Council Meeting January 16, 2018 100 3.2 The Documentation is licensed to you and may be used and copied by your employees for internal, non‐commercial reference purposes only.

3.3 You retain all ownership and intellectual property rights to the Data.

4. Data Upon Termination. Upon termination of this Agreement for any reason, we agree to deliver to you, in a standard file format to the location you identify, a copy of your Data in our possession. Alternatively, if you prefer, we will certify that, to the extent feasible, such Data has been destroyed or erased. You must provide us written notice of your preference within a commercially reasonable timeframe prior to the effective date of termination.

5. Disentanglement. In the event of any termination or expiration of this Agreement, Tyler will provide Client, or, at Client’s request, to Client’s designated alternative service provider, reasonable cooperation, to facilitate the orderly transition and migration of the SaaS Services to Client or its designee (the “Disentanglement Services”). Tyler shall allow Client or a new service provider commercially reasonable access to the Tyler Software and/or Documentation, to the extent reasonably necessary to migrate the Tyler Software to a new service provider. Tyler reserves the right to require a non‐disclosure agreement or similar protection before granting access to a third‐ party to the Tyler Software and/or Documentation, or any other proprietary and/or confidential information reasonably required for the requested migration.

The disentanglement services that Tyler shall perform, if requested by Client may include but are not limited to:  Working with Client to jointly develop a mutually agreed upon transition services plan to facilitate the termination of the services;  Notifying all affected service providers and subcontractors of Tyler of transition activities;  Performing the transition service plan activities;  Answering questions on an as‐needed basis;  Providing for the prompt and orderly transfer of all the Data files maintained by Tyler and the conclusion of all work, as Client may reasonably direct, including completion or partial completion of some projects, documentation of work in process, and other measures to ensure an orderly transition to the Client or Client’s designee; and  Providing such other reasonable services needed to effectuate an orderly transition to a new system.

Any disentanglement services must be requested within thirty (30) days of the notice of termination, and must be capable of completion within 90 days of the notice of termination. Disentanglement services will be provided on a time and materials basis at Tyler’s then‐current rates

6. Restrictions. You may not: (a) make the Tyler Software or Documentation resulting from the SaaS Services available in any manner to any third party for use in the third party’s business operations; (b) modify, make derivative works of, disassemble, reverse compile, or reverse engineer any part of the SaaS Services; (c) access or use the SaaS Services in order to build or support, and/or assist a third party in building or supporting, products or services competitive to us; or (d) license, sell, rent, lease, transfer, assign, distribute, display, host, outsource, disclose, permit timesharing or service bureau use, or otherwise commercially exploit or make the SaaS Services, Tyler Software, or Documentation available to any third party other than as expressly permitted by this Agreement.

City Council Meeting January 16, 2018 101 7. Software Warranty. We warrant that the Tyler Software will perform without Defects during the term of this Agreement. If the Tyler Software does not perform as warranted, we will use all reasonable efforts, consistent with industry standards, to cure the Defect in accordance with the maintenance and support process set forth in Section C(8), below, the SLA and our then current Support Call Process.

8. SaaS Services.

6.1 Our SaaS Services are audited at least yearly in accordance with the AICPA’s Statement on Standards for Attestation Engagements (“SSAE”) No. 16, Type 2. We have attained, and will maintain, Type II SSAE compliance, or its equivalent, for so long as you are timely paying for SaaS Services. Upon execution of a mutually agreeable Non‐Disclosure Agreement (“NDA”), we will provide you with a summary of our SSAE‐16 compliance report or its equivalent. Every year thereafter, for so long as the NDA is in effect and in which you make a written request, we will provide that same information.

6.2 You will be hosted on shared hardware in a Tyler data center, but in a database dedicated to you, which is inaccessible to our other customers.

6.3 We have fully‐redundant telecommunications access, electrical power, and the required hardware to provide access to the Tyler Software in the event of a disaster or component failure. In the event any of your data has been lost or damaged due to an act or omission of Tyler or its subcontractors or due to a defect in Tyler’s software, we will use best commercial efforts to restore all the data on servers in accordance with the architectural design’s capabilities and with the goal of minimizing any data loss as greatly as possible. In no case shall the recovery point objective (“RPO”) exceed a maximum of twenty‐four (24) hours from declaration of disaster. For purposes of this subsection, RPO represents the maximum tolerable period during which your data may be lost, measured in relation to a disaster we declare, said declaration will not be unreasonably withheld.

6.4 In the event we declare a disaster, our Recovery Time Objective (“RTO”) is twenty‐four (24) hours. For purposes of this subsection, RTO represents the amount of time, after we declare a disaster, within which your access to the Tyler Software must be restored.

6.5 We conduct annual penetration testing of either the production network and/or web application to be performed. We will maintain industry standard intrusion detection and prevention systems to monitor malicious activity in the network and to log and block any such activity. We will provide you with a written or electronic record of the actions taken by us in the event that any unauthorized access to your database(s) is detected as a result of our security protocols. We will undertake an additional security audit, on terms and timing to be mutually agreed to by the parties, at your written request. You may not attempt to bypass or subvert security restrictions in the SaaS Services or environments related to the Tyler Software. Unauthorized attempts to access files, passwords or other confidential information, and unauthorized vulnerability and penetration test scanning of our network and systems (hosted or otherwise) is prohibited without the prior written approval of our IT Security Officer.

6.6 We test our disaster recovery plan on an annual basis. Our standard test is not client‐specific. Should you request a client‐specific disaster recovery test, we will work with you to schedule and execute such a test on a mutually agreeable schedule. City Council Meeting January 16, 2018 102 6.7 We will be responsible for importing back‐up and verifying that you can log‐in. You will be responsible for running reports and testing critical processes to verify the returned data. At your written request, we will provide test results to you within a commercially reasonable timeframe after receipt of the request.

6.8 We provide secure data transmission paths from each of your workstations to our servers.

6.9 For at least the past ten (10) years, all of our employees have undergone criminal background checks prior to hire. All employees sign our confidentiality agreement and security policies. Our data centers are accessible only by authorized personnel with a unique key entry. All other visitors must be signed in and accompanied by authorized personnel. Entry attempts to the data center are regularly audited by internal staff and external auditors to ensure no unauthorized access.

SECTION C – OTHER PROFESSIONAL SERVICES

1. Other Professional Services. We will provide you the various implementation‐related services itemized in the Investment Summary and described in the Statement of Work. We will finalize that documentation with you upon execution of this Agreement.

2. Professional Services Fees. You agree to pay us the professional services fees in the amounts set forth in the Investment Summary. Those amounts are payable in accordance with our Invoicing and Payment Policy. You acknowledge that the fees stated in the Investment Summary are good‐faith estimates of the amount of time and materials required for your implementation. We will bill you the actual fees incurred based on the in‐scope services provided to you. Any discrepancies in the total values set forth in the Investment Summary will be resolved by multiplying the applicable hourly rate by the quoted hours.

3. Additional Services. The Investment Summary contains, and the Statement of Work describes, the scope of services and related costs (including programming and/or interface estimates) required for the project based on our understanding of the specifications you supplied. If additional work is required, or if you use or request additional services, we will provide you with an addendum or change order, as applicable, outlining the costs for the additional work. The price quotes in the addendum or change order will be valid for thirty (30) days from the date of the quote.

4. Cancellation. If travel is required, we will make all reasonable efforts to schedule travel for our personnel, including arranging travel reservations, at least two (2) weeks in advance of commitments. Therefore, if you cancel services less than two (2) weeks in advance (other than for Force Majeure or breach by us), you will be liable for all (a) non‐refundable expenses incurred by us on your behalf, and (b) daily fees associated with cancelled professional services if we are unable to reassign our personnel. We will make all reasonable efforts to reassign personnel in the event you cancel within two (2) weeks of scheduled commitments.

5. Services Warranty. We will perform the services in a professional, workmanlike manner, consistent with industry standards. In the event we provide services that do not conform to this warranty, we will re‐perform such services at no additional cost to you.

6. Site Access and Requirements. At no cost to us, you agree to provide us with full and free access to your personnel, facilities, and equipment as may be reasonably necessary for us to provide implementation services, subject to any reasonable security protocols or other written policies City Council Meeting January 16, 2018 103 provided to us as of the Effective Date, and thereafter as mutually agreed to by you and us.

7. Client Assistance. You acknowledge that the implementation of the Tyler Software is a cooperative process requiring the time and resources of your personnel. You agree to use all reasonable efforts to cooperate with and assist us as may be reasonably required to meet the agreed upon project deadlines and other milestones for implementation. This cooperation includes at least working with us to schedule the implementation‐related services outlined in this Agreement. We will not be liable for failure to meet any deadlines and milestones when such failure is due to Force Majeure or to the failure by your personnel to provide such cooperation and assistance (either through action or omission).

8. Maintenance and Support. For so long as you timely pay your SaaS Fees according to the Invoicing and Payment Policy, then in addition to the terms set forth in the SLA and the Support Call Process, we will:

8.1 perform our maintenance and support obligations in a professional, good, and workmanlike manner, consistent with industry standards, to resolve Defects in the Tyler Software (limited to the then‐current version and the immediately prior version);

8.2 provide telephone support during our established support hours;

8.3 maintain personnel that are sufficiently trained to be familiar with the Tyler Software and Third Party Software, if any, in order to provide maintenance and support services;

8.4 make available to you all major and minor releases to the Tyler Software (including updates and enhancements) that we make generally available without additional charge to customers who have a maintenance and support agreement in effect; and

8.5 provide non‐Defect resolution support of prior releases of the Tyler Software in accordance with our then‐current release life cycle policy.

We will use all reasonable efforts to perform support services remotely. Currently, we use a third‐party secure unattended connectivity tool called Bomgar, as well as GotoAssist by Citrix. Therefore, you agree to maintain a high‐speed internet connection capable of connecting us to your PCs and server(s). You agree to provide us with a login account and local administrative privileges as we may reasonably require to perform remote services. We will, at our option, use the secure connection to assist with proper diagnosis and resolution, subject to any reasonably applicable security protocols. If we cannot resolve a support issue remotely, we may be required to provide onsite services. In such event, we will be responsible for our travel expenses, unless it is determined that the reason onsite support was required was a reason outside our control. Either way, you agree to provide us with full and free access to the Tyler Software, working space, adequate facilities within a reasonable distance from the equipment, and use of machines, attachments, features, or other equipment reasonably necessary for us to provide the maintenance and support services, all at no charge to us. We strongly recommend that you also maintain your VPN for backup connectivity purposes.

For the avoidance of doubt, SaaS Fees do not include the following services: (a) onsite support (unless Tyler cannot remotely correct a Defect in the Tyler Software, as set forth above); (b) application design; (c) other consulting services; or (d) support outside our normal business hours as listed in our then‐ current Support Call Process. Requested services such as those outlined in this section will be billed to City Council Meeting January 16, 2018 104 you on a time and materials basis at our then current rates. You must request those services with at least one (1) weeks’ advance notice.

SECTION D – THIRD PARTY PRODUCTS

1. Third Party Hardware. We will sell, deliver, and install onsite the Third Party Hardware, if you have purchased any, for the price set forth in the Investment Summary. Those amounts are payable in accordance with our Invoicing and Payment Policy.

2. Third Party Software. As part of the SaaS Services, you will receive access to the Third Party Software and related documentation for internal business purposes only. Your rights to the Third Party Software will be governed by the Third Party Terms.

3. Third Party Products Warranties.

3.1 We are authorized by each Developer to grant access to the Third Party Software.

3.2 The Third Party Hardware will be new and unused, and upon payment in full, you will receive free and clear title to the Third Party Hardware.

3.3 You acknowledge that we are not the manufacturer of the Third Party Products. We do not warrant or guarantee the performance of the Third Party Products. However, we grant and pass through to you any warranty that we may receive from the Developer or supplier of the Third Party Products.

SECTION E ‐ INVOICING AND PAYMENT; INVOICE DISPUTES

1. Invoicing and Payment. We will invoice you the SaaS Fees and fees for other professional services in the Investment Summary per our Invoicing and Payment Policy, subject to Section E(2).

2. Invoice Disputes. If you believe any delivered software or service does not conform to the warranties in this Agreement, you will provide us with written notice within thirty (30) days of your receipt of the applicable invoice. The written notice must contain reasonable detail of the issues you contend are in dispute so that we can confirm the issue and respond to your notice with either a justification of the invoice, an adjustment to the invoice, or a proposal addressing the issues presented in your notice. We will work with you as may be necessary to develop an action plan that outlines reasonable steps to be taken by each of us to resolve any issues presented in your notice. You may withhold payment of the amount(s) actually in dispute, and only those amounts, until we complete the action items outlined in the plan. If we are unable to complete the action items outlined in the action plan because of your failure to complete the items agreed to be done by you, then you will remit full payment of the invoice. We reserve the right to suspend delivery of all SaaS Services, including maintenance and support services, if you fail to pay an invoice not disputed as described above within fifteen (15) days of notice of our intent to do so.

SECTION F – TERM AND TERMINATION

1. Term. The initial term of this Agreement is seven (7) years from the first day of the first month following the Effective Date, unless earlier terminated as set forth below. Upon expiration of the initial term, this Agreement will renew automatically for additional one (1) year renewal terms at our then‐current SaaS Fees unless terminated in writing by either party at least sixty (60) days prior

City Council Meeting January 16, 2018 105 to the end of the then‐current renewal term. Your right to access or use the Tyler Software and the SaaS Services will terminate at the end of this Agreement.

2. Termination. This Agreement may be terminated as set forth below. In the event of termination, you will pay us for all undisputed fees and expenses related to the software, products, and/or services you have received, or we have incurred or delivered, prior to the effective date of termination. Disputed fees and expenses in all terminations other than your termination for cause must have been submitted as invoice disputes in accordance with Section E(2).

2.1 Failure to Pay SaaS Fees. You acknowledge that continued access to the SaaS Services is contingent upon your timely payment of SaaS Fees. If you fail to timely pay the SaaS Fees, we may discontinue the SaaS Services and deny your access to the Tyler Software. We may also terminate this Agreement if you don’t cure such failure to pay within forty‐five (45) days of receiving written notice of our intent to terminate.

2.2 For Cause. If you believe we have materially breached this Agreement, you will invoke the Dispute Resolution clause set forth in Section H(3). You may terminate this Agreement for cause in the event we do not cure, or create a mutually agreeable action plan to address, a material breach of this Agreement within the thirty (30) day window set forth in Section H(3).

2.3 Force Majeure. Either party has the right to terminate this Agreement if a Force Majeure event suspends performance of the SaaS Services for a period of forty‐five (45) days or more.

2.4 Lack of Appropriations. If you should not appropriate or otherwise make available funds sufficient to utilize the SaaS Services, you may unilaterally terminate this Agreement upon thirty (30) days written notice to us. You will not be entitled to a refund or offset of previously paid, but unused SaaS Fees. You agree not to use termination for lack of appropriations as a substitute for termination for convenience.

2.5 Fees for Termination without Cause during Initial Term. If you terminate this Agreement during the initial term for any reason other than cause, Force Majeure, or lack of appropriations, or if we terminate this Agreement during the initial term for your failure to pay SaaS Fees, you shall pay us the following early termination fees:

a. if you terminate during the first year of the initial term, 100% of the SaaS Fees through the date of termination plus 25% of the SaaS Fees then due for the remainder of the initial term;

b. if you terminate during the second year of the initial term, 100% of the SaaS Fees through the date of termination plus 15% of the SaaS Fees then due for the remainder of the initial term; and

c. if you terminate after the second year of the initial term, 100% of the SaaS Fees through the date of termination plus 10% of the SaaS Fees then due for the remainder of the initial term.

SECTION G – INDEMNIFICATION, LIMITATION OF LIABILITY AND INSURANCE

1. Intellectual Property Infringement Indemnification. City Council Meeting January 16, 2018 106 1.1 We will defend you against any third party claim(s) that the Tyler Software or Documentation infringes that third party’s patent, copyright, or trademark, or misappropriates its trade secrets, and will pay the amount of any resulting adverse final judgment (or settlement to which we consent). You must notify us promptly in writing of the claim and give us sole control over its defense or settlement. You agree to provide us with reasonable assistance, cooperation, and information in defending the claim at our expense.

1.2 Our obligations under this Section G(1) will not apply to the extent the claim or adverse final judgment is based on your use of the Tyler Software in contradiction of this Agreement, including with non‐licensed third parties, or your willful infringement.

1.3 If we receive information concerning an infringement or misappropriation claim related to the Tyler Software, we may, at our expense and without obligation to do so, either: (a) procure for you the right to continue its use; (b) modify it to make it non‐infringing; or (c) replace it with a functional equivalent, in which case you will stop running the allegedly infringing Tyler Software immediately. Alternatively, we may decide to litigate the claim to judgment, in which case you may continue to use the Tyler Software consistent with the terms of this Agreement.

1.4 If an infringement or misappropriation claim is fully litigated and your use of the Tyler Software is enjoined by a court of competent jurisdiction, in addition to paying any adverse final judgment (or settlement to which we consent), we will, at our option, either: (a) procure the right to continue its use; (b) modify it to make it non‐infringing; (c) replace it with a functional equivalent; or (d) terminate this Agreement and refund you the prepaid but unused SaaS Fees for the year in which the Agreement terminates. We will pursue those options in the order listed herein. This section provides your exclusive remedy for third party copyright, patent, or trademark infringement and trade secret misappropriation claims.

2. General Indemnification.

2.1 We will indemnify and hold harmless you and your agents, officials, and employees from and against any and all third‐party claims, losses, liabilities, damages, costs, and expenses (including reasonable attorney's fees and costs) for (a) personal injury or property damage to the extent caused by our negligence or willful misconduct; or (b) our violation of a law applicable to our performance under this Agreement. You must notify us promptly in writing of the claim and give us sole control over its defense or settlement. You agree to provide us with reasonable assistance, cooperation, and information in defending the claim at our expense.

2.2 To the extent permitted by applicable law, you will indemnify and hold harmless us and our agents, officials, and employees from and against any and all third‐party claims, losses, liabilities, damages, costs, and expenses (including reasonable attorney's fees and costs) for personal injury or property damage to the extent caused by your negligence or willful misconduct; or (b) your violation of a law applicable to your performance under this Agreement. We will notify you promptly in writing of the claim and will give you sole control over its defense or settlement. We agree to provide you with reasonable assistance, cooperation, and information in defending the claim at your expense.

3. DISCLAIMER. EXCEPT FOR THE EXPRESS WARRANTIES PROVIDED IN THIS AGREEMENT AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, WE HEREBY DISCLAIM ALL OTHER WARRANTIES AND CONDITIONS, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES, DUTIES, OR CONDITIONS OF MERCHANTABILITY OR

City Council Meeting January 16, 2018 107 FITNESS FOR A PARTICULAR PURPOSE.

4. LIMITATION OF LIABILITY. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, OUR LIABILITY FOR DAMAGES ARISING OUT OF THIS AGREEMENT, WHETHER BASED ON A THEORY OF CONTRACT OR TORT, INCLUDING NEGLIGENCE AND STRICT LIABILITY, SHALL BE LIMITED TO YOUR ACTUAL DIRECT DAMAGES, NOT TO EXCEED (A) DURING THE INITIAL TERM, AS SET FORTH IN SECTION F(2), TOTAL FEES PAID AS OF THE TIME OF THE CLAIM; OR (B) DURING ANY RENEWAL TERM, THE THEN‐CURRENT ANNUAL SAAS FEES PAYABLE IN THAT RENEWAL TERM. THE PRICES SET FORTH IN THIS AGREEMENT ARE SET IN RELIANCE UPON THIS LIMITATION OF LIABILITY. THE FOREGOING LIMITATION OF LIABILITY SHALL NOT APPLY TO CLAIMS THAT ARE SUBJECT TO SECTIONS G(1) AND G(2).

5. EXCLUSION OF CERTAIN DAMAGES. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL WE BE LIABLE FOR ANY SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES WHATSOEVER, EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

6. Insurance. During the course of performing services under this Agreement, we agree to maintain the following levels of insurance: (a) Commercial General Liability of at least $1,000,000; (b) Automobile Liability of at least $1,000,000; (c) Professional Liability of at least $1,000,000; (d) Workers Compensation complying with applicable statutory requirements; and (e) Excess/Umbrella Liability of at least $5,000,000. We will add you as an additional insured to our Commercial General Liability and Automobile Liability policies, which will automatically add you as an additional insured to our Excess/Umbrella Liability policy as well. We will provide you with copies of certificates of insurance upon your written request.

SECTION H – GENERAL TERMS AND CONDITIONS

1. Additional Products and Services. You may purchase additional products and services at the rates set forth in the Investment Summary for twelve (12) months from the Effective Date by executing a mutually agreed addendum. If no rate is provided in the Investment Summary, or those twelve (12) months have expired, you may purchase additional products and services at our then‐current list price, also by executing a mutually agreed addendum. The terms of this Agreement will control any such additional purchase(s), unless otherwise specifically provided in the addendum.

2. Optional Items. Pricing for any listed optional products and services in the Investment Summary will be valid for twelve (12) months from the Effective Date.

3. Dispute Resolution. You agree to provide us with written notice within thirty (30) days of becoming aware of a dispute. You agree to cooperate with us in trying to reasonably resolve all disputes, including, if requested by either party, appointing a senior representative to meet and engage in good faith negotiations with our appointed senior representative. Senior representatives will convene within thirty (30) days of the written dispute notice, unless otherwise agreed. All meetings and discussions between senior representatives will be deemed confidential settlement discussions not subject to disclosure under Federal Rule of Evidence 408 or any similar applicable state rule. If we fail to resolve the dispute, either of us may assert our respective rights and remedies in a court of competent jurisdiction. Nothing in this section shall prevent you or us from seeking necessary injunctive relief during the dispute resolution procedures.

City Council Meeting January 16, 2018 108 4. Taxes. The fees in the Investment Summary do not include any taxes, including, without limitation, sales, use, or excise tax. If you are a tax‐exempt entity, you agree to provide us with a tax‐exempt certificate. Otherwise, we will pay all applicable taxes to the proper authorities and you will reimburse us for such taxes. If you have a valid direct‐pay permit, you agree to provide us with a copy. For clarity, we are responsible for paying our income taxes, both federal and state, as applicable, arising from our performance of this Agreement.

5. Nondiscrimination. We will not discriminate against any person employed or applying for employment concerning the performance of our responsibilities under this Agreement. This discrimination prohibition will apply to all matters of initial employment, tenure, and terms of employment, or otherwise with respect to any matter directly or indirectly relating to employment concerning race, color, religion, national origin, age, sex, sexual orientation, ancestry, disability that is unrelated to the individual's ability to perform the duties of a particular job or position, height, weight, marital status, or political affiliation. We will post, where appropriate, all notices related to nondiscrimination as may be required by applicable law.

6. E‐Verify. We have complied, and will comply, with the E‐Verify procedures administered by the U.S. Citizenship and Immigration Services Verification Division for all of our employees assigned to your project.

7. Subcontractors. We will not subcontract any services under this Agreement without your prior written consent, not to be unreasonably withheld.

8. Binding Effect; No Assignment. This Agreement shall be binding on, and shall be for the benefit of, either your or our successor(s) or permitted assign(s). Neither party may assign this Agreement without the prior written consent of the other party; provided, however, your consent is not required for an assignment by us as a result of a corporate reorganization, merger, acquisition, or purchase of substantially all of our assets.

9. Force Majeure. Except for your payment obligations, neither party will be liable for delays in performing its obligations under this Agreement to the extent that the delay is caused by Force Majeure; provided, however, that within ten (10) business days of the Force Majeure event, the party whose performance is delayed provides the other party with written notice explaining the cause and extent thereof, as well as a request for a reasonable time extension equal to the estimated duration of the Force Majeure event.

10. No Intended Third Party Beneficiaries. This Agreement is entered into solely for the benefit of you and us. No third party will be deemed a beneficiary of this Agreement, and no third party will have the right to make any claim or assert any right under this Agreement. This provision does not affect the rights of third parties under any Third Party Terms.

11. Entire Agreement; Amendment. This Agreement represents the entire agreement between you and us with respect to the subject matter hereof, and supersedes any prior agreements, understandings, and representations, whether written, oral, expressed, implied, or statutory. This Agreement may only be modified by a written amendment signed by an authorized representative of each party.

12. Severability. If any term or provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement will be considered valid and enforceable to the fullest extent permitted by law.

City Council Meeting January 16, 2018 109 13. No Waiver. In the event that the terms and conditions of this Agreement are not strictly enforced by either party, such non‐enforcement will not act as or be deemed to act as a waiver or modification of this Agreement, nor will such non‐enforcement prevent such party from enforcing each and every term of this Agreement thereafter.

14. Independent Contractor. We are an independent contractor for all purposes under this Agreement.

15. Notices. All notices or communications required or permitted as a part of this Agreement, such as notice of an alleged material breach for a termination for cause or a dispute that must be submitted to dispute resolution, must be in writing and will be deemed delivered upon the earlier of the following: (a) actual receipt by the receiving party; (b) upon receipt by sender of a certified mail, return receipt signed by an employee or agent of the receiving party; (c) upon receipt by sender of proof of email delivery; or (d) if not actually received, five (5) days after deposit with the United States Postal Service authorized mail center with proper postage (certified mail, return receipt requested) affixed and addressed to the other party at the address set forth on the signature page hereto or such other address as the party may have designated by proper notice. The consequences for the failure to receive a notice due to improper notification by the intended receiving party of a change in address will be borne by the intended receiving party.

16. Client Lists. You agree that we may identify you by name in client lists, marketing presentations, and promotional materials.

17. Confidentiality. Both parties recognize that their respective employees and agents, in the course of performance of this Agreement, may be exposed to confidential information and that disclosure of such information could violate rights to private individuals and entities, including the parties. Confidential information is nonpublic information that a reasonable person would believe to be confidential and includes, without limitation, personal identifying information (e.g., social security numbers) and trade secrets, each as defined by applicable state law. Each party agrees that it will not disclose any confidential information of the other party and further agrees to take all reasonable and appropriate action to prevent such disclosure by its employees or agents. The confidentiality covenants contained herein will survive the termination or cancellation of this Agreement. This obligation of confidentiality will not apply to information that:

(a) is in the public domain, either at the time of disclosure or afterwards, except by breach of this Agreement by a party or its employees or agents; (b) a party can establish by reasonable proof was in that party's possession at the time of initial disclosure; (c) a party receives from a third party who has a right to disclose it to the receiving party; or (d) is the subject of a legitimate disclosure request under the open records laws or similar applicable public disclosure laws governing this Agreement; provided, however, that in the event you receive an open records or other similar applicable request, you will give us prompt notice and otherwise perform the functions required by applicable law.

18. Business License. In the event a local business license is required for us to perform services hereunder, you will promptly notify us and provide us with the necessary paperwork and/or contact information so that we may timely obtain such license.

19. Governing Law. This Agreement will be governed by and construed in accordance with the laws of your state of domicile, without regard to its rules on conflicts of law.

City Council Meeting January 16, 2018 110 20. Multiple Originals and Authorized Signatures. This Agreement may be executed in multiple originals, any of which will be independently treated as an original document. Any electronic, faxed, scanned, photocopied, or similarly reproduced signature on this Agreement or any amendment hereto will be deemed an original signature and will be fully enforceable as if an original signature. Each party represents to the other that the signatory set forth below is duly authorized to bind that party to this Agreement.

21. Cooperative Procurement. To the maximum extent permitted by applicable law, we agree that this Agreement may be used as a cooperative procurement vehicle by eligible jurisdictions. We reserve the right to negotiate and customize the terms and conditions set forth herein, including but not limited to pricing, to the scope and circumstances of that cooperative procurement.

22. Contract Documents. This Agreement includes the following exhibits:

Exhibit A Investment Summary Exhibit B Invoicing and Payment Policy Schedule 1: Business Travel Policy Exhibit C Service Level Agreement Schedule 1: Support Call Process Exhibit D Web Services – Hosted Application Terms Exhibit E Disaster Recovery Services Exhibit F Statement of Work

IN WITNESS WHEREOF, a duly authorized representative of each party has executed this Agreement as of the date(s) set forth below.

Tyler Technologies, Inc. City of Snohmish, WA

By: By:

Name: Name:

Title: Title:

Date: Date:

Address for Notices: Address for Notices: Tyler Technologies, Inc. City of Snohmish One Tyler Drive 116 Union Avenue Yarmouth, ME 04096 Snohomish, WA 98290 Attention: Chief Legal Counsel Attention: Debbie Burton

City Council Meeting January 16, 2018 111

Exhibit A Investment Summary

The following Investment Summary details the software and services to be delivered by us to you under the Agreement. This Investment Summary is effective as of the Effective Date. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement.

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City Council Meeting January 16, 2018 112 City Council Meeting January 16, 2018 113 City Council Meeting January 16, 2018 114 City Council Meeting January 16, 2018 115 City Council Meeting January 16, 2018 116 City Council Meeting January 16, 2018 117

Exhibit B Invoicing and Payment Policy

We will provide you with the software and services set forth in the Investment Summary of the Agreement. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement.

Invoicing: We will invoice you for the applicable software and services in the Investment Summary as set forth below. Your rights to dispute any invoice are set forth in the Agreement.

1. SaaS Fees. SaaS Fees are invoiced on an annual basis, beginning on the commencement of the initial term as set forth in Section F (1) of this Agreement. Your annual SaaS fees for the initial term are set forth in the Investment Summary. Upon expiration of the initial term, your annual SaaS fees will be at our then‐current rates.

2. Other Tyler Software and Services.

2.1 Project Planning Services: Project planning services are invoiced upon delivery of the implementation planning document.

2.2 VPN Device: The fee for the VPN device will be invoiced upon installation of the VPN.

2.3 Implementation and Other Professional Services (including training): Implementation and other professional services (including training) are billed and invoiced as delivered, at the rates set forth in the Investment Summary.

2.4 Consulting Services: If you have purchased any Business Process Consulting services, if they have been quoted as fixed‐fee services, they will be invoiced 50% upon your acceptance of the Business System Design document, by module, and 50% upon your acceptance of custom desktop procedures, by module. If you have purchased any Business Process Consulting services and they are quoted as an estimate, then we will bill you the actual services delivered on a time and materials basis.

2.5 Conversions: Fixed‐fee conversions are invoiced 50% upon initial delivery of the converted data, by conversion option, and 50% upon Client acceptance to load the converted data into Live/Production environment, by conversion option. Where conversions are quoted as estimated, we will bill you the actual services delivered on a time and materials basis.

2.6 Requested Modifications to the Tyler Software: Requested modifications to the Tyler Software are invoiced 50% upon delivery of specifications and 50% upon delivery of the applicable modification. You must report any failure of the modification to conform to the specifications within thirty (30) days of delivery; otherwise, the modification will be deemed to be in compliance with the specifications after the 30‐day window has passed. You may still report Defects to us as set forth in the Maintenance and Support Agreement.

City Council Meeting January 16, 2018 118 2.7 Other Fixed Price Services: Other fixed price services are invoiced upon complete delivery of the service. For the avoidance of doubt, where “Project Planning Services” are provided, payment will be due upon delivery of the Implementation Planning document.

2.8 Change Management Services: If you have purchased any change management services, those services will be invoiced in the following amounts and upon the following milestones:

Acceptance of Change Management Discovery Analysis 15% Delivery of Change Management Plan and Strategy Presentation 10% Acceptance of Executive Playbook 15% Acceptance of Resistance Management Plan 15% Acceptance of Procedural Change Communications Plan 10% Change Management Coach Training 20% Change Management After‐Action Review 15%

3. Third Party Products.

3.1 Third Party Software License Fees: License fees for Third Party Software, if any, are invoiced when we make it available to you for downloading.

3.2 Third Party Software Maintenance: The first year maintenance for the Third Party Software is invoiced when we make it available to you for downloading.

3.3 Third Party Hardware: Third Party Hardware costs, if any, are invoiced upon delivery.

4. Expenses. The service rates in the Investment Summary do not include travel expenses. Expenses will be billed as incurred and only in accordance with our then‐current Business Travel Policy, plus a 10% travel agency processing fee. Our current Business Travel Policy is attached to this Exhibit B at Schedule 1. Copies of receipts will be provided upon request; we reserve the right to charge you an administrative fee depending on the extent of your requests. Receipts for miscellaneous items less than twenty‐five dollars and mileage logs are not available.

Payment. Payment for undisputed invoices is due within forty‐five (45) days of the invoice date. We prefer to receive payments electronically. Our electronic payment information is:

Bank: Wells Fargo Bank, N.A. 420 Montgomery San Francisco, CA 94104 ABA: 121000248 Account: 4124302472 Beneficiary: Tyler Technologies, Inc. – Operating

City Council Meeting January 16, 2018 119

Exhibit B Schedule 1 Business Travel Policy

1. Air Travel

A. Reservations & Tickets

Tyler’s Travel Management Company (TMC) will provide an employee with a direct flight within two hours before or after the requested departure time, assuming that flight does not add more than three hours to the employee’s total trip duration and the fare is within $100 (each way) of the lowest logical fare. If a net savings of $200 or more (each way) is possible through a connecting flight that is within two hours before or after the requested departure time and that does not add more than three hours to the employee’s total trip duration, the connecting flight should be accepted.

Employees are encouraged to make advanced reservations to take full advantage of discount opportunities. Employees should use all reasonable efforts to make travel arrangements at least two (2) weeks in advance of commitments. A seven (7) day advance booking requirement is mandatory. When booking less than seven (7) days in advance, management approval will be required.

Except in the case of international travel where a segment of continuous air travel is six (6) or more consecutive hours in length, only economy or coach class seating is reimbursable. Employees shall not be reimbursed for “Basic Economy Fares” because these fares are non‐ refundable and have many restrictions that outweigh the cost‐savings.

B. Baggage Fees

Reimbursement of personal baggage charges are based on trip duration as follows:

• Up to five (5) days = one (1) checked bag • Six (6) or more days = two (2) checked bags

Baggage fees for sports equipment are not reimbursable.

2. Ground Transportation

A. Private Automobile

Mileage Allowance – Business use of an employee’s private automobile will be reimbursed at the current IRS allowable rate, plus out of pocket costs for tolls and parking. Mileage will City Council Meeting January 16, 2018 120 be calculated by using the employee's office as the starting and ending point, in compliance with IRS regulations. Employees who have been designated a home office should calculate miles from their home.

B. Rental Car

Employees are authorized to rent cars only in conjunction with air travel when cost, convenience, and the specific situation reasonably require their use. When renting a car for Tyler business, employees should select a “mid‐size” or “intermediate” car. “Full” size cars may be rented when three or more employees are traveling together. Tyler carries leased vehicle coverage for business car rentals; except for employees traveling to Alaska and internationally (excluding Canada), additional insurance on the rental agreement should be declined.

C. Public Transportation

Taxi or airport limousine services may be considered when traveling in and around cities or to and from airports when less expensive means of transportation are unavailable or impractical. The actual fare plus a reasonable tip (15‐18%) are reimbursable. In the case of a free hotel shuttle to the airport, tips are included in the per diem rates and will not be reimbursed separately.

D. Parking & Tolls

When parking at the airport, employees must use longer term parking areas that are measured in days as opposed to hours. Park and fly options located near some airports may also be used. For extended trips that would result in excessive parking charges, public transportation to/from the airport should be considered. Tolls will be reimbursed when receipts are presented.

3. Lodging

Tyler’s TMC will select hotel chains that are well established, reasonable in price, and conveniently located in relation to the traveler's work assignment. Typical hotel chains include Courtyard, Fairfield Inn, Hampton Inn, and Holiday Inn Express. If the employee has a discount rate with a local hotel, the hotel reservation should note that discount and the employee should confirm the lower rate with the hotel upon arrival. Employee memberships in travel clubs such as AAA should be noted in their travel profiles so that the employee can take advantage of any lower club rates.

“No shows” or cancellation fees are not reimbursable if the employee does not comply with the hotel’s cancellation policy.

Tips for maids and other hotel staff are included in the per diem rate and are not reimbursed separately.

Employees are not authorized to reserve non‐traditional short‐term lodging, such as Airbnb, VRBO, and HomeAway. Employees who elect to make such reservations shall not be

City Council Meeting January 16, 2018 121 reimbursed.

4. Meals and Incidental Expenses

Employee meals and incidental expenses while on travel status within the continental U.S. are in accordance with the federal per diem rates published by the General Services Administration. Incidental expenses include tips to maids, hotel staff, and shuttle drivers and other minor travel expenses. Per diem rates are available at www.gsa.gov/perdiem.

Per diem for Alaska, Hawaii, U.S. protectorates and international destinations are provided separately by the Department of Defense and will be determined as required.

A. Overnight Travel For each full day of travel, all three meals are reimbursable. Per diems on the first and last day of a trip are governed as set forth below.

Departure Day

Depart before 12:00 noon Lunch and dinner Depart after 12:00 noon Dinner

Return Day

Return before 12:00 noon Breakfast Return between 12:00 noon & 7:00 p.m. Breakfast and lunch Return after 7:00 p.m.* Breakfast, lunch and dinner

*7:00 p.m. is defined as direct travel time and does not include time taken to stop for dinner.

The reimbursement rates for individual meals are calculated as a percentage of the full day per diem as follows:

Breakfast 15% Lunch 25% Dinner 60%

B. Same Day Travel

Employees traveling at least 100 miles to a site and returning in the same day are eligible to claim lunch on an expense report. Employees on same day travel status are eligible to claim dinner in the event they return home after 7:00 p.m.*

*7:00 p.m. is defined as direct travel time and does not include time taken to stop for dinner.

City Council Meeting January 16, 2018 122 5. Internet Access – Hotels and Airports

Employees who travel may need to access their e‐mail at night. Many hotels provide free high speed internet access and Tyler employees are encouraged to use such hotels whenever possible. If an employee’s hotel charges for internet access it is reimbursable up to $10.00 per day. Charges for internet access at airports are not reimbursable.

6. International Travel

All international flights with the exception of flights between the U.S. and Canada should be reserved through TMC using the “lowest practical coach fare” with the exception of flights that are six (6) or more consecutive hours in length. In such event, the next available seating class above coach shall be reimbursed.

When required to travel internationally for business, employees shall be reimbursed for photo fees, application fees, and execution fees when obtaining a new passport book, but fees related to passport renewals are not reimbursable. Visa application and legal fees, entry taxes and departure taxes are reimbursable.

The cost of vaccinations that are either required for travel to specific countries or suggested by the U.S. Department of Health & Human Services for travel to specific countries, is reimbursable.

Section 4, Meals & Incidental Expenses, and Section 2.b., Rental Car, shall apply to this section.

City Council Meeting January 16, 2018 123

Exhibit C

SERVICE LEVEL AGREEMENT

I. Agreement Overview This SLA operates in conjunction with, and does not supersede or replace any part of, the Agreement. It outlines the information technology service levels that we will provide to you to ensure the availability of the application services that you have requested us to provide. All other support services are documented in the Support Call Process.

II. Definitions. Except as defined below, all defined terms have the meaning set forth in the Agreement.

Attainment: The percentage of time the Tyler Software is available during a calendar quarter, with percentages rounded to the nearest whole number. Client Error Incident: Any service unavailability resulting from your applications, content or equipment, or the acts or omissions of any of your service users or third‐party providers over whom we exercise no control. Downtime: Those minutes during which the Tyler Software is not available for your use. Downtime does not include those instances in which only a Defect is present. Service Availability: The total number of minutes in a calendar quarter that the Tyler Software is capable of receiving, processing, and responding to requests, excluding maintenance windows, Client Error Incidents and Force Majeure.

III. Service Availability The Service Availability of the Tyler Software is intended to be 24/7/365. We set Service Availability goals and measures whether we have met those goals by tracking Attainment. a. Your Responsibilities Whenever you experience Downtime, you must make a support call according to the procedures outlined in the Support Call Process. You will receive a support incident number. You must document, in writing, all Downtime that you have experienced during a calendar quarter. You must deliver such documentation to us within 30 days of a quarter’s end. The documentation you provide must evidence the Downtime clearly and convincingly. It must include, for example, the support incident number(s) and the date, time and duration of the Downtime(s). b. Our Responsibilities When our support team receives a call from you that Downtime has occurred or is occurring, we will work with you to identify the cause of the Downtime (including whether it may be the result of a Client Error Incident or Force Majeure). We will also work with you to resume normal operations.

City Council Meeting January 16, 2018 124 Upon timely receipt of your Downtime report, we will compare that report to our own outage logs and support tickets to confirm that Downtime for which we were responsible indeed occurred. We will respond to your Downtime report within 30 day(s) of receipt. To the extent we have confirmed Downtime for which we are responsible, we will provide you with the relief set forth below. c. Client Relief When a Service Availability goal is not met due to confirmed Downtime, we will provide you with relief that corresponds to the percentage amount by which that goal was not achieved, as set forth in the Client Relief Schedule below. Notwithstanding the above, the total amount of all relief that would be due under this SLA per quarter will not exceed 5% of one quarter of the then‐current SaaS Fee. The total credits confirmed by us in one or more quarters of a billing cycle will be applied to the SaaS Fee for the next billing cycle. Issuing of such credit does not relieve us of our obligations under the Agreement to correct the problem which created the service interruption. Every quarter, we will compare confirmed Downtime to Service Availability. In the event actual Attainment does not meet the targeted Attainment, the following Client relief will apply, on a quarterly basis: Targeted Attainment Actual Attainment Client Relief

100% 98‐99% Remedial action will be taken.

4% credit of fee for affected calendar quarter 100% 95‐97% will be posted to next billing cycle 5% credit of fee for affected calendar quarter 100% <95% will be posted to next billing cycle

You may request a report from us that documents the preceding quarter’s Service Availability, Downtime, any remedial actions that have been/will be taken, and any credits that may be issued.

IV. Applicability The commitments set forth in this SLA do not apply during maintenance windows, Client Error Incidents, and Force Majeure. We perform maintenance during limited windows that are historically known to be reliably low‐traffic times. If and when maintenance is predicted to occur during periods of higher traffic, we will provide advance notice of those windows and will coordinate to the greatest extent possible with you.

V. Force Majeure You will not hold us responsible for not meeting service levels outlined in this SLA to the extent any failure to do so is caused by Force Majeure. In the event of Force Majeure, we will file with you a signed request that said failure be excused. That writing will at least include the essential details and circumstances supporting our request for relief pursuant to this Section. You will not unreasonably withhold its acceptance of such a request.

City Council Meeting January 16, 2018 125

Exhibit C Schedule 1 Support Call Process

Support Channels Tyler Technologies, Inc. provides the following channels of software support: (1) Tyler Community – an on‐line resource, Tyler Community provides a venue for all Tyler clients with current maintenance agreements to collaborate with one another, share best practices and resources, and access documentation. (2) On‐line submission (portal) – for less urgent and functionality‐based questions, users may create unlimited support incidents through the customer relationship management portal available at the Tyler Technologies website. (3) Email – for less urgent situations, users may submit unlimited emails directly to the software support group. (4) Telephone – for urgent or complex questions, users receive toll‐free, unlimited telephone software support.

Support Resources A number of additional resources are available to provide a comprehensive and complete support experience: (1) Tyler Website – www.tylertech.com – for accessing client tools and other information including support contact information. (2) Tyler Community – available through login, Tyler Community provides a venue for clients to support one another and share best practices and resources. (3) Knowledgebase – A fully searchable depository of thousands of documents related to procedures, best practices, release information, and job aides. (4) Program Updates – where development activity is made available for client consumption

Support Availability Tyler Technologies support is available during the local business hours of 8 AM to 5 PM (Monday – Friday) across four US time zones (Pacific, Mountain, Central and Eastern). Clients may receive coverage across these time zones. Tyler’s holiday schedule is outlined below. There will be no support coverage on these days. New Year’s Day Thanksgiving Day Memorial Day Day after Thanksgiving Independence Day Christmas Day Labor Day

Issue Handling Incident Tracking Every support incident is logged into Tyler’s Customer Relationship Management System and given a unique incident number. This system tracks the history of each incident. The incident tracking number is used to track and reference open issues when clients contact support. Clients may track incidents, using the incident number, through the portal at Tyler’s website or by calling software support directly.

City Council Meeting January 16, 2018 126 Incident Priority Each incident is assigned a priority number, which corresponds to the client’s needs and deadlines. The client is responsible for reasonably setting the priority of the incident per the chart below. This chart is not intended to address every type of support incident, and certain “characteristics” may or may not apply depending on whether the Tyler software has been deployed on customer infrastructure or the Tyler cloud. The goal is to help guide the client towards clearly understanding and communicating the importance of the issue and to describe generally expected responses and resolutions.

Priority Characteristics of Support Incident Resolution Targets Level

Support incident that causes (a) Tyler shall provide an initial response to Priority Level complete application failure or 1 incidents within one (1) business hour of receipt of application unavailability; (b) the support incident. Tyler shall use commercially application failure or unavailability in reasonable efforts to resolve such support incidents or 1 one or more of the client’s remote provide a circumvention procedure within one (1) Critical location; or (c) systemic loss of business day. For non‐hosted customers, Tyler’s multiple essential system functions. responsibility for lost or corrupted data is limited to assisting the client in restoring its last available database.

Support incident that causes (a) Tyler shall provide an initial response to Priority Level repeated, consistent failure of 2 incidents within four (4) business hours of receipt of essential functionality affecting more the support incident. Tyler shall use commercially than one user or (b) loss or corruption reasonable efforts to resolve such support incidents or 2 of data. provide a circumvention procedure within ten (10) High business days. For non‐hosted customers, Tyler’s responsibility for loss or corrupted data is limited to assisting the client in restoring its last available database.

Priority Level 1 incident with an Tyler shall provide an initial response to Priority Level existing circumvention procedure, or a 3 incidents within one (1) business day of receipt of Priority Level 2 incident that affects the support incident. Tyler shall use commercially only one user or for which there is an reasonable efforts to resolve such support incidents 3 existing circumvention procedure. without the need for a circumvention procedure with Medium the next published maintenance update or service pack. For non‐hosted customers, Tyler’s responsibility for lost or corrupted data is limited to assisting the client in restoring its last available database.

Support incident that causes failure of Tyler shall provide an initial response to Priority Level 4 non‐essential functionality or a 4 incidents within two (2) business days. Tyler shall Non‐ cosmetic or other issue that does not use commercially reasonable efforts to resolve such critical qualify as any other Priority Level. support incidents, as well as cosmetic issues, with a future version release.

City Council Meeting January 16, 2018 127

Incident Escalation Tyler Technology’s software support consists of four levels of personnel: (1) Level 1: front‐line representatives (2) Level 2: more senior in their support role, they assist front‐line representatives and take on escalated issues (3) Level 3: assist in incident escalations and specialized client issues (4) Level 4: responsible for the management of support teams for either a single product or a product group

If a client feels they are not receiving the service needed, they may contact the appropriate Software Support Manager. After receiving the incident tracking number, the manager will follow up on the open issue and determine the necessary action to meet the client’s needs. On occasion, the priority or immediacy of a software support incident may change after initiation. Tyler encourages clients to communicate the level of urgency or priority of software support issues so that we can respond appropriately. A software support incident can be escalated by any of the following methods: (1) Telephone – for immediate response, call toll‐free to either escalate an incident’s priority or to escalate an issue through management channels as described above. (2) Email – clients can send an email to software support in order to escalate the priority of an issue (3) On‐line Support Incident Portal – clients can also escalate the priority of an issue by logging into the client incident portal and referencing the appropriate incident tracking number.

Remote Support Tool Some support calls require further analysis of the client’s database, process or setup to diagnose a problem or to assist with a question. Tyler will, at its discretion, use an industry‐standard remote support tool. Support is able to quickly connect to the client’s desktop and view the site’s setup, diagnose problems, or assist with screen navigation. More information about the remote support tool Tyler uses is available upon request.

City Council Meeting January 16, 2018 128 Exhibit D Web Services – Hosted Application Terms

Tyler Technologies, Inc. will provide you with the hosted applications indicated in the Investment Summary of your License and Services Agreement. The terms and conditions contained in this document only apply to our provision of those applications. Capitalized terms not otherwise defined will have the meaning assigned to such terms in your License and Services Agreement.

1. Hosted Applications. We will provide you with any of the following hosted applications as indicated in the Investment Summary.

1.1. Web Services: Our Web Services are designed to enable you to easily establish a presence on the Internet. Our Web Hosting and Design is composed of our Web Hosting and Design Publishing Component and other miscellaneous components. These components may be used independently or in conjunction with each other.

1.2. Utility Billing On‐Line: Our Utility Billing On‐Line Component allows you to make available certain information from your utility billing system to citizens with Internet access. This information is posted to your web site, which is hosted on our web server. With the proper security clearance, citizens with Internet access have access to the data which can include: Consumption information, service level information, requests for service, accounting information and the opportunity to pay their Utility Bill over the Internet using a credit card.

2. Term. We will grant you access to the hosted applications provided you timely pay all associated fees. The term of your subscription will commence on the Effective Date and will continue for three (3) years. Thereafter, the term will be automatically extended in separate one (1) year periods. Either party may cancel this subscription to the hosted applications upon sixty (60) days written notice to the other.

3. Nature of Website. We shall maintain a website for you, allowing a user to access relevant data provided by you. This data may include information from your Tyler Software system. This website will be capable of accepting payments via Secured Socket Layer (SSL) encryption and credit card or debit card charge.

4. Data Procurement. You must set up a merchant account with Electronic Transaction System Corporation or authorized.net to be solely used for our Web Service transactions. The merchant account must be set up to fund to your bank account. You are responsible for all fees and expenses of the merchant account. You must install and run Tyler Web Services to allow us to transfer the necessary data from your system to our servers on a real time basis. Certain information, such as payment information, must be conveyed to you. We will be responsible for transferring such information to you on a regular basis. Tyler Web Services requires a dedicated IP address; assignment of this address is your responsibility. While we assume responsibility for data transfer, we are not responsible for accuracy of data transferred.

City Council Meeting January 16, 2018 129 5. Limited License. Your license to use the hosted applications will automatically terminate upon cancellation of this subscription, or upon your failure to timely pay fees or otherwise comply with these terms and conditions.

6. Ownership of Data. All data you provide to us for the purposes of generating the website shall remain your property. Should you terminate your subscription, we shall return to you any such data in our possession.

7. Fees. You agree to pay the initial fee and annual subscription fees as stated in the Investment Summary and in accordance with our Invoicing and Payment Policy. We may increase the per‐transaction fee for online payment no more than once per year with sixty (60) days prior written notice.

City Council Meeting January 16, 2018 130 Exhibit E DISASTER RECOVERY SERVICES

The following terms govern our provision of Disaster Recovery Services to you under your License and Services Agreement. This document is effective as of the Effective Date. Capitalized terms not otherwise defined will have the meaning assigned to such terms in your License and Services Agreement.

SECTION A – DEFINITIONS

 “Business Days” means Monday through Friday, excluding Holidays.  “Critical Processes” means those processes as mutually defined in the Disaster Recovery Plan.  “Critical Users” means those users as mutually defined in the Disaster Recovery Plan.  “Data” means Tyler Software data.  “Disaster” means an unplanned event that is not within your reasonable control and which results in the failure of the Tyler Software to perform Critical Processes. A Disaster is not a hardware or network failure that would have been avoided with reasonable diligence and maintenance in accordance with the industry standard, a failure otherwise covered by any other current agreement between you and us (e.g., a maintenance and support agreement, technical services agreement, or similar), or a failure that can be remedied in less than sixteen (16) hours.  “Disaster Recovery Plan” means a mutually drafted document which details, in addition to this Exhibit, the DR Services we shall provide.  “Disaster Recovery Services” means the services described in this Exhibit.  “Holiday” means New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the day after Thanksgiving Day, and Christmas Day.  “Recovery Point Objective” or “RPO” means the amount of time since last successful Data transfer. With successful nightly transfer of Data, RPO would be no more than twenty‐four (24) hours.  “Recovery Time Objective” or “RTO” means twenty‐four business hours after receipt of a Disaster Declaration for Client Data not exceeding one (1) terabyte in size, for Critical Users using Critical Processes. RTO for Client Data one (1) terabyte in size or greater shall be mutually agreed, specified, and incorporated into the Disaster Recovery Plan.

SECTION B – TERMS

1. Term. The Disaster Recovery Services are provided on an annual basis, beginning on the Effective Date. Disaster Recovery will not be available until you provide us your Data. The term shall renew automatically for additional one (1) year terms unless terminated in writing by either party at least ninety (90) days prior to the end of the then‐current term. In the event you terminate maintenance and support services under your license agreement for the Tyler Software, our provision of Disaster Recovery Services shall also terminate. You will not be entitled to refund or offset of previously paid fees. 2. Disaster Recovery Services. We will provide all Disaster Recovery Services remotely. In the event the Disaster results in damage to your server(s) and a reinstallation of the Tyler Software is required as a result of such damage, we will reinstall the Tyler Software at no additional cost. Our Disaster Recovery staff will

City Council Meeting January 16, 2018 131 contact you for the start of the Disaster Recovery Services activation process. 3. Client Requirements. In order for us to provide Disaster Recovery Services, you must: a) provide high speed internet access, including upload bandwidth sufficient for complete nightly Data transfers to comply with applicable RPO; b) comply with our then‐current minimum hardware and network requirements as specified on check.tylertech.com, or such other website as we may make available to you; c) maintain security and access privileges for us to receive Data transfer and perform activities reasonably necessary for us to provide Disaster Recovery Services; d) permit installation of software required for provision of Disaster Recovery Services in accordance with this Agreement as reasonably determined by us; e) provide us with reasonable notice of any changes in your network that may impact our ability to deliver Disaster Recovery Services; and f) declare a disaster by calling us at (800) 646.2633, or such other number as we may provide, and clearly stating that you are declaring a disaster. 4. Disaster Recovery. Your Critical Processes will be accessible by Critical Users in accordance with the applicable RTO. 5. Data. Data transfer will be handled in accordance with this Exhibit. 6. Release Life Cycle. We will provide Disaster Recovery Services for versions of the Tyler Software currently supported in accordance with our then‐current Release Life Cycle Policy. 7. Payment and Price. The fee for the Disaster Recovery Services for the initial year is as set forth in the Investment Summary Thereafter, the annual fee, at our then‐current rate, will be invoiced and paid prior to the commencement of any renewal. All payments are due within forty‐five (45) days of the date of invoice. 8. Defined User Maximum. The maximum number of named users who may use the DR Services is five (5). 9. Exclusions. a) Neither party shall be liable for delays in performing its obligations under this Agreement to the extent that the delay is caused by Force Majeure. b) Our Disaster Recovery Service will not be used to replace required on‐site backups of your Data for the Tyler Software; you must continue to make regular backups of your Data. c) The fees paid for Disaster Recovery Service does not include, and you are responsible for any costs associated with: i. hardware and/or software necessary to remotely access our datacenter, and any and all onsite services. You may request and purchase onsite services at our then current rates. ii. The hand‐delivery or courier‐delivery of any Critical Processes output you request (such as payroll checks). 10. License Terms. Your use of the Tyler Software is governed by your Licenses and Services Agreement with Tyler, and all limitations, terms, and conditions therein remain in full force and effect. 11. Notices. All notices other than the declaration of a Disaster must be in writing and delivered in accordance with the notices section of your License and Services Agreement. City Council Meeting January 16, 2018 132 SECTION C – PROCEDURES

1. Data Transfer. The electronic transfer solution provides nightly transfer and archiving of your Data between the hours of 8:00 PM and 6:00 AM (Central) and is subject to the following conditions: a) Initial Data transfer may require portable disk. b) Data transferred shall include only Data. c) Applications included in the Disaster Recovery Service are listed in the Investment Summary. Tyler Software not listed in the Investment Summary and any non‐Tyler Software shall not be included in Data transfer or the Disaster Recovery Services. d) Only production databases are backed up. e) We will retain Data from the last seven (7) successful data transfers. f) Total Data storage is limited to 100 gigabytes. Storage limit may be increased in 100 gigabyte increments by mutual agreement in writing and at additional cost. g) Data transferred to us as part of Disaster Recovery Service is not available for your retrieval or restoration of data not associated with the Disaster Recovery Services. However, we may provide a copy of such Data on an exception basis upon written request, additional fees, at our then‐current rates for such service, may apply. h) We are not responsible for the integrity of the Data you provide. We will use the most current viable Data to restore your Critical Processes. i) To the extent the Data contains confidential information, as defined in your license agreement with us, we shall keep such information confidential in accordance with the applicable confidentiality provisions of the license agreement. j) We will monitor the status of data transfers on Business Days. k) In the event of two (2) consecutive data transfer failures, we will timely provide you notice, so that you may commence troubleshooting. l) We have no liability for data transfer failures, when the failure is not solely caused by us. m) We will provide a transfer report related to your data transfer upon request. Such report will state what was transferred. n) You shall provide us any encryption key or similar device required to access the transferred Data, and grant us the right to back up such key. 2. Disaster Recovery Plan. The parties’ responsibilities with respect to the Disaster Recovery Plan are further defined below. a) Our responsibilities:  Coordinate activities associated with transfer of Data to our data center(s).  Document Disaster Recovery strategy for critical processes.  Review the Disaster Recovery Plan with you.  Provide reasonable guidance for Disaster Recovery policies and procedures.

City Council Meeting January 16, 2018 133  Identify modules, databases, applications, and files required for Disaster Recovery Services. b) Your responsibilities:  Provide remote access to your Tyler database server for analysis and configuration of Data transfer.  Provide network support if required to enable transfer of Data from your server to our data center(s).  Provide PCs and high‐speed modems for access from your alternate processing location, if required.  Provide technical resources to configure remote access PCs, including application software supplied by us, if reasonably required to receive Disaster Recovery services pursuant to this Exhibit.  Provide a chain of command document for communication during a disaster.  Maintain the Disaster Recovery Plan and integrate the Disaster Recovery Plan with your own comprehensive disaster recovery plan. c) Shared Responsibilities:  Identify critical users for DR Services.  Identify critical processes for DR Services.  Identify RTO.  Draft initial Disaster Recovery Plan within ninety (90) days of the Effective Date.  Define recovery processes for post‐Disaster operations. 3. DR Services During a Disaster. a) Upon declaration of a Disaster, we shall provide DR Services from one of our hosting facilities for the duration of the Disaster, not to exceed thirty (30) consecutive Business Days. Use of our data center in excess of such period may result in additional fees and will require a written change order. b) Hosting services during a Disaster:  Hosting Services during a Disaster will be provided in accordance with our then‐current availability guaranties as detailed in our then‐current Service Level Agreement for SaaS Clients. Any credits issued to you pursuant to that document will be based on the total Disaster Recovery fees paid for the then‐current term.  We will use best efforts to include interfaces for the Tyler Software covered by the Disaster Recovery Services.  Hosting Services shall not include interfaces or interconnects with Third Party Products unless specifically agreed to in the Disaster Recovery Plan. 4. Annual Disaster Recovery Test. The parties may review and test the Disaster Recovery Service once per year. a) The parties must schedule such tests at least thirty (30) days in advance. b) You must provide a list of users who will be involved in the test.

City Council Meeting January 16, 2018 134 c) Such tests shall not exceed two (2) weeks. d) The parties may schedule a second test within the same year if the initial test is not successful as agreed to by both parties. 5. Estimated Schedule. The DR Services will be performed consistent with the estimated schedule mutually agreed to by both parties in the Disaster Recovery Plan. The parties will promptly perform their respective responsibilities according to such schedule. 6. Tyler’s Project Management Services. Project management services are provided as part of the Disaster Recovery Services. We will designate a project manager who will be your contact for all communications, and who will have the authority to act on our behalf in matters regarding the Disaster Recovery Services. Our project manager will perform the following tasks: a) Review the Disaster Recovery Plan with your project manager. b) Review current project status. c) Recommend changes or additions to the Disaster Recovery Plan as appropriate. d) Administer the change control procedure. e) Review and evaluate the progress of the project with your project manager to resolve any necessary changes. 7. Your Project Management Responsibilities. Our performance is predicated upon your fulfillment of the following responsibilities. Prior to the start of the Statement of Work, you will designate, in writing, a person who will be your project manager and will be our contact for all communications and who will have the authority to act on your behalf in all matters regarding the Disaster Recovery Services. Your project manager will perform the following tasks: a) Interface between our project manager and your organization. b) Administer project change control with our project manager. c) Help resolve and escalate project issues within your organization as required. d) Obtain and provide project requirements, Data, decisions, and approvals within five (5) business days of request. If such requirements, Data, decisions, or approvals are delayed beyond the time specified, we shall be relieved of responsibility for the affected service until provide such requirements. e) Accept responsibility for the Data files, selection and implementation of controls for your location and security of stored Data. 8. Project Change Control Procedure. The parties must agree in writing to any changes to the Disaster Recovery Plan. Such writing shall describe the change and any resulting charges or fees.

City Council Meeting January 16, 2018 135

Exhibit E

Statement of Work

City Council Meeting January 16, 2018 136 Statement of Work Enterprise Group, Tyler Technologies

Prepared for:

City of Snohomish, WA Debbie Burton 116 Union Ave, Snohomish, WA 98290

Prepared by:

David Snow 5519 53rd Street, Lubbock, TX 79414 Tyler Technologies, Inc. www.tylertech.com

City Council Meeting January 16, 2018 Revised: 6/8/2017 137

Table of Contents

1 EXECUTIVE SUMMARY ...... 5

1.1 PROJECT OVERVIEW ...... 5 1.2 PRODUCT SUMMARY ...... 5 1.3 PROJECT TIMELINE ...... 5 1.4 PROJECT METHODOLOGY OVERVIEW ...... 5 2 PROJECT GOVERNANCE ...... 6

2.1 CLIENT GOVERNANCE ...... 6 2.1.1 Client Project Manager ...... 6 2.1.2 Steering Committee ...... 6 2.1.3 Executive Sponsor(s) ...... 7 2.2 TYLER GOVERNANCE ...... 7 2.2.1 Tyler Project Manager ...... 7 2.2.2 Tyler Implementation Management ...... 7 2.2.3 Tyler Executive Management ...... 7 2.3 ACCEPTANCE AND ACKNOWLEDGMENT PROCESS ...... 7 3 OVERALL PROJECT ASSUMPTIONS ...... 8

3.1 PROJECT, RESOURCES AND SCHEDULING ...... 8 3.2 DATA CONVERSION ...... 9 3.3 DATA EXCHANGES, MODIFICATIONS, FORMS AND REPORTS ...... 9 3.4 HARDWARE AND SOFTWARE ...... 10 3.5 ENVIRONMENTS AND DATABASES ...... 10 3.6 EDUCATION ...... 10 3.7 ASSUMPTION MITIGATION ...... 11 4 IMPLEMENTATION STAGES ...... 11

4.1 WORK BREAKDOWN STRUCTURE (WBS) ...... 11 4.2 INITIATE & PLAN (STAGE 1) ...... 13 4.2.1 Tyler Internal Coordination & Planning ...... 13 4.2.2 System Infrastructure Planning ...... 14 4.2.3 Project/Phase Planning ...... 15 4.2.4 Project Schedule ...... 16 4.2.5 Stakeholder Presentation ...... 17 4.2.6 Control Point 1: Initiate & Plan Stage Acceptance ...... 18 4.3 ASSESS & DEFINE (STAGE 2) ...... 19 4.3.1 Fundamentals Review ...... 19 4.3.2 Current/Future State Analysis ...... 20

City Council Meeting 2 / 57 January 16, 2018 138 4.3.3 Data Conversion Planning & Mapping ...... 21 4.3.4 Standard 3rd Party Data Exchange Planning ...... 22 4.3.5 Customization Analysis & Specification, if contracted ...... 23 4.3.6 Forms & Reports Planning ...... 24 4.3.7 System Deployment ...... 25 4.3.8 Control Point 2: Assess & Define Stage Acceptance ...... 26 4.4 BUILD & VALIDATE (STAGE 3) ...... 28 4.4.1 Configuration & Power User Training ...... 28 4.4.2 Data Conversion & Validation ...... 29 4.4.3 Standard 3rd Party Data Exchange Validation...... 30 4.4.4 Customization Delivery & Validation, if contracted ...... 31 4.4.5 Forms & Reports Validation ...... 32 4.4.6 Control Point 3: Build & Validate Stage Acceptance ...... 33 4.5 FINAL TESTING & TRAINING (STAGE 4) ...... 34 4.5.1 Cutover Planning ...... 34 4.5.2 User Acceptance Testing (UAT) ...... 35 4.5.3 End User Training ...... 36 4.5.4 Control Point 4: Final Testing & Training Stage Acceptance ...... 37 4.6 PRODUCTION CUTOVER (STAGE 5) ...... 38 4.6.1 Final Data Conversion, if applicable ...... 38 4.6.2 Production Processing & Assistance ...... 39 4.6.3 Transition to Tyler Support ...... 40 4.6.4 Schedule Post‐production Services, if applicable ...... 41 4.6.5 Control Point 5: Production Cutover Stage Acceptance ...... 42 4.7 PHASE/PROJECT CLOSURE (STAGE 6) ...... 43 4.7.1 Close Phase/Project ...... 43 4.7.2 Control Point 6: Phase/Project Closure Stage Acceptance ...... 44 5 ROLES AND RESPONSIBILITIES ...... 45

5.1 TYLER ROLES AND RESPONSIBILITIES ...... 45 5.1.1 Tyler Executive Management ...... 45 5.1.2 Tyler Implementation Management ...... 45 5.1.3 Tyler Project Manager ...... 45 5.1.4 Tyler Implementation Consultant ...... 46 5.1.5 Tyler Sales ...... 47 5.1.6 Tyler Software Support ...... 47 5.1.7 Tyler Basic Network Support ...... 47 5.1.8 Tyler Disaster Recovery Support ...... 47 5.2 SNOHOMISH, WA ROLES AND RESPONSIBILITIES ...... 48 5.2.1 Snohomish, WA Executive Sponsor ...... 48 5.2.2 Snohomish, WA Steering Committee ...... 48 5.2.3 Snohomish, WA Project Manager ...... 48 City Council Meeting 3 / 57 January 16, 2018 139

5.2.4 Snohomish, WA Functional Leads ...... 50 5.2.5 Snohomish, WA Power Users ...... 50 5.2.6 Snohomish, WA End Users...... 51 5.2.7 Snohomish, WA Technical Support ...... 51 5.2.8 Snohomish, WA Upgrade Coordinator ...... 51 5.2.9 Snohomish, WA project Toolset Coordinator ...... 51 5.2.10 Snohomish, WA Change Management Lead ...... 52 6 GLOSSARY ...... 52

7 INCODE 10 CONVERSION SUMMARY ...... 55

7.1 GENERAL LEDGER – CHART OF ACCOUNTS ...... 55 7.2 GENERAL LEDGER – LEGACY/HISTORICAL VIEWS ...... 55 7.3 ACCOUNTS PAYABLE – VENDOR MASTER ...... 55 7.4 ACCOUNTS PAYABLE – LEGACY/HISTORICAL VIEWS ...... 55 7.5 PERSONNEL MANAGEMENT/PAYROLL ‐ STANDARD ...... 55 7.6 PERSONNEL MANAGEMENT/PAYROLL – LEGACY/HISTORICAL VIEWS ...... 55 7.7 UTILITY BILLING ‐ STANDARD ...... 55 7.8 UTILITY BILLING – LEGACY/HISTORICAL VIEWS ...... 56 8 ENERGOV CONVERSION SUMMARY ...... 56

8.1 PERMITTING ...... 56 8.2 BUSINESS AND PROFESSIONAL LICENSING ...... 56

City Council Meeting 4 / 57 January 16, 2018 140 1 Executive Summary 1.1 Project Overview

The Statement of Work (SOW) documents the Project Scope, methodology, roles and responsibilities, implementation stages, and deliverables for the implementation of Tyler products.

The Project goals are to offer City of Snohomish, WA the opportunity to make the Snohomish, WA more accessible and responsive to external and internal customer needs and more efficient in its operations through:

 Streamlining, automating, and integrating business processes and practices  Providing tools to produce and access information in a real‐time environment  Enabling and empowering users to become more efficient, productive and responsive  Successfully overcoming current challenges and meeting future goals 1.2 Product Summary

Below, is a summary of the products included in this Project, as well as reference to the Snohomish, WA’s functional area utilizing the Tyler product(s). Refer to the Implementation Stages section of this SOW for information containing detailed service components.

[PRODUCT] [APPLICATION] Incode Financials Incode Personnel Management Incode CIS Incode CRM Tyler Content Manager Document Management EnerGov Permitting & Land Management EnerGov Licensing & Regulatory Management 1.3 Project Timeline

The Project Timeline establishes a start and end date for each Stage of the Project. Developed during the Initiate & Plan Stage and revised as mutually agreed to, if needed, the timeline accounts for resource availability, business goals, size and complexity of the Project, and task duration requirements. 1.4 Project Methodology Overview

Tyler bases its implementation methodology on the Project Management Institute’s (PMI) Process Groups (Initiating, Planning, Executing, Monitoring & Controlling, and Closing). Using this model, Tyler developed a 6‐stage process specifically designed to focus on critical project success measurement factors.

City Council Meeting 5 / 57 January 16, 2018 141

Tailored specifically for Tyler’s Public Sector clients, the project methodology contains Stage Acceptance Control Points throughout each Phase to ensure adherence to Scope, budget, timeline controls, effective communications, and quality standards. Clearly defined, the project methodology repeats consistently across Phases, and is scaled to meet the Snohomish, WA’s complexity, and organizational needs. 2 Project Governance

The purpose of this section is to define the resources required to adequately establish the business needs, objectives, and priorities for the Project; communicate the goals to other project participants; and provide support and guidance to accomplish these goals. Project governance also defines the structure for issue escalation and resolution, Change Control review and authority, and organizational Change Management activities.

The preliminary governance structure establishes a clear escalation path when issues and risks require escalation above the Project Manager level. Further refinement of the governance structure, related processes, and specific roles and responsibilities occurs during the Initiate & Plan Stage.

The path below illustrates an overall team perspective where Tyler and the Snohomish, WA collaborate to resolve project challenges according to defined escalation paths. In the event Project Managers do not possess authority to determine a solution, resolve an issue, or mitigate a risk, Tyler implementation management and the Snohomish, WA steering committee become the escalation points to triage responses prior to escalation to the Snohomish, WA and Tyler executive sponsors. As part of the escalation process, each project governance tier presents recommendations and supporting information to facilitate knowledge transfer and issue resolution. The Snohomish, WA and Tyler executive sponsors serve as the final escalation point. 2.1 Client Governance

Depending on the Snohomish, WA’s organizational structure and size, the following governance roles may be filled by one or more people: 2.1.1 Client Project Manager

The Snohomish, WA’s Project Manager(s) coordinate project team members, subject matter experts, and the overall implementation schedule and serves as the primary point of contact with Tyler. The Snohomish, WA Project Manager(s) will be responsible for reporting to the Snohomish, WA steering committee and determining appropriate escalation points. 2.1.2 Steering Committee

The Snohomish, WA steering committee understands and supports the cultural change necessary for the Project and fosters an appreciation of the Project’s value throughout the organization. Oversees the Snohomish, WA Project Manager(s) and the Project as a whole and through participation in regular internal meetings, the Snohomish, WA steering committee remains updated on all project progress, project decisions, and achievement of project milestones. The Snohomish, WA steering committee also provides support to the Snohomish, WA Project Manager(s) by communicating the importance of the Project to all impacted departments. The Snohomish, WA steering committee is responsible for ensuring City Council Meeting 6 / 57 January 16, 2018 142 the Project has appropriate resources, provides strategic direction to the project team, for making timely decisions on critical project issues or policy decisions. The Snohomish, WA steering committee also serves as primary level of issue resolution for the Project. 2.1.3 Executive Sponsor(s)

The Snohomish, WA’s executive sponsor provides support to the Project by allocating resources, providing strategic direction, and communicating key issues about the Project and the Project’s overall importance to the organization. When called upon, the executive sponsor also acts as the final authority on all escalated project issues. The executive sponsor engages in the Project, as needed, in order to provide necessary support, oversight, guidance, and escalation, but does not participate in day‐to‐day project activities. The executive sponsor empowers the Snohomish, WA steering committee, Project Manager(s), and Functional Leads to make critical business decisions for the Snohomish, WA. 2.2 Tyler Governance 2.2.1 Tyler Project Manager

The Tyler Project Manager(s) have direct involvement with the Project and coordinates Tyler project team members, subject matter experts, the overall implementation schedule, and serves as the primary point of contact with the Snohomish, WA. As requested byt the Snohomish, WA, the Tyler Project Manager(s) provide regular updates to the Snohomish, WA’s steering committee and other Tyler governance members. 2.2.2 Tyler Implementation Management

Tyler implementation management has indirect involvement with the Project and is part of the Tyler escalation process. Tyler Project Manager(s) consult implementation management on issues and outstanding decisions critical to the Project. Implementation management works toward a solution with the Tyler Project Manager(s) or with the Snohomish, WA management, as appropriate. Tyler executive management is the escalation point for any issues not resolved at this level. The name(s) and contact information for this resource will be provided and available to the project team. 2.2.3 Tyler Executive Management

Tyler executive management has indirect involvement with the Project and is part of the Tyler escalation process. This team member offers additional support to the project team and collaborates with other Tyler department managers, as needed, in order to escalate and facilitate implementation project tasks and decisions. The name(s) and contact information for this resource will be provided and available to the project team. 2.3 Acceptance and Acknowledgment Process

All Deliverables and Control Points must be accepted or acknowledged following the process below. Acceptance requires a formal sign‐off while acknowledgement may be provided without formal sign‐off at

City Council Meeting 7 / 57 January 16, 2018 143

the time of delivery. The following process will be used for accepting or acknowledging Deliverables and Control Points:

 The Snohomish, WA shall have five (5) business days from the date of delivery, or as otherwise mutually agreed upon by the parties in writing, to accept or acknowledge each Deliverable or Control Point. If the Snohomish, WA does not provide acceptance or acknowledgement within five (5) business days, or the otherwise agreed upon timeframe, not to be unreasonably withheld, Tyler deems the Deliverable or Control Point as accepted.  If the Snohomish, WA does not agree the particular Deliverable or Control Point meets requirements, the Snohomish, WA shall notify Tyler Project Manager(s), in writing, with reasoning within five (5) business days, or the otherwise agreed‐upon timeframe, not to be unreasonably withheld, of receipt of the Deliverable.  Tyler shall address any deficiencies and redeliver the Deliverable or Control Point. The Snohomish, WA shall then have two (2) business days from receipt of the redelivered Deliverable or Control Point to accept or again submit written notification of reasons for rejecting the milestone. If the Snohomish, WA does not provide acceptance or acknowledgement within two (2) business days, or the otherwise agreed upon timeframe, not to be unreasonably withheld, Tyler deems the Deliverable or Control Point as accepted. 3 Overall Project Assumptions 3.1 Project, Resources and Scheduling

 Project activities will begin, as mutually agreed to, after the Agreement has been fully executed.  The Snohomish, WA and Tyler can allocate additional internal resources if needed. The Snohomish, WA also ensures the alignment of their budget and Scope expectations.  The Snohomish, WA and Tyler ensure that the assigned resources are available, they buy‐into the change process, and they possess the required business knowledge to complete their assigned tasks successfully. Should there be a change in resources, the replacement resource should have a comparable level of availability, buy‐in, and knowledge.  Tyler and the Snohomish, WA provide adequate resources to support the efforts to complete the Project as scheduled and within the constraints of the project budget.  Abbreviated timelines and overlapped Phases can result in project delays if there are not sufficient resources assigned to complete all required work as scheduled.  Changes to Project Plan, availability of resources or changes in Scope may result in schedule delays, which may result in additional charges to the Project.  Tyler provides a written agenda and notice of any prerequisites to the Snohomish, WA Project Manager(s) ten (10) business days prior to any scheduled on site or remote sessions.  Tyler provides notice of any prerequisites to the Snohomish, WA Project Manager(s) a minimum of ten (10) business days prior to any key deliverable due dates.  Snohomish, WA users complete prerequisites prior to applicable scheduled activities.  Tyler provides guidance for configuration and processing options available within the Tyler software. The Snohomish, WA is responsible for making decisions based on the options available.  In the event the Snohomish, WA may elect to add and/or modify current business policies during the course of this Project, such policy changes are solely the Snohomish, WA’s responsibility to define, document, and implement.

City Council Meeting 8 / 57 January 16, 2018 144  The Snohomish, WA makes timely Project related decisions in order to achieve scheduled due dates on tasks and prepare for subsequent training sessions. Decisions left unmade may affect the schedule, as each analysis and implementation session builds on the decisions made in prior sessions.  Tyler considers additional services out of Scope and requires additional time and costs be requested via Change Request approved through the Change Control process.  The Snohomish, WA will respond to information requests in a comprehensive and timely manner, in accordance with the Project Plan. 3.2 Data Conversion

 The Snohomish, WA is readily able to produce the needed data files from a static database for conversion from the Legacy System to provide them to Tyler on the specified due date(s). At the time the Legacy System data file is extracted, the Snohomish, WA will produce reports and detail screen captures to reconcile the converted data.  Each Legacy System data file submitted for conversion includes all associated records in a single approved file layout.  The Snohomish, WA will grant Tyler access to the Legacy System to assist with understanding data relationships to improve the accuracy and quality of the converted data.  The Snohomish, WA understands the Legacy System data file must be in the same format each time unless changes are mutually agreed upon in advance. If not, negative impacts to the schedule, budget, and resource availability may occur and/or data in the new system may be incorrect.  During this process, the Snohomish, WA may need to correct data scenarios in their Legacy System prior to the final data pull. This is a complex activity and requires due diligence by the Snohomish, WA to ensure all data pulled includes all required data and the Tyler system contains properly mapped data.  During Production Cutover, the Snohomish, WA may need to manually add or correct data after data has been loaded into the production database as mutually agreed to prior to the load. 3.3 Data Exchanges, Modifications, Forms and Reports

 The Snohomish, WA ensures the 3rd party data received conforms to a Tyler standard format.  The 3rd party possesses the knowledge of how to program their portion of the interaction and understands how to manipulate the data received.  Client is on a supported, compatible version of the 3rd party software or Tyler Standard Data Exchange tools may not be available.  The Snohomish, WA is willing to make reasonable business process changes rather than expecting the product to conform to every aspect of their current system/process.  Any Modification requests not expressly stated in the contract are out of Scope. Modifications requested after contract signing have the potential to change cost, Scope, schedule, and production dates for project Phases. Modification requests not in Scope must follow the Project Change Control process.  The Snohomish, WA’s testing environment contains the Tyler software version required for delivery of the Modification prior to the scheduled delivery date for testing

City Council Meeting 9 / 57 January 16, 2018 145

 The Snohomish, WA is responsible for verifying the performance of the Modification as defined by the specification 3.4 Hardware and Software

 Tyler will initially install the most current generally available version of the purchased Tyler software.  The Snohomish, WA will provide network access for Tyler modules, printers, and Internet access to all applicable Snohomish, WA and Tyler project staff.  The Snohomish, WA has in place all hardware, software, and technical infrastructure necessary to support the Project.  The Snohomish, WA’s system hardware and software meet Tyler standards to ensure sufficient speed and operability of Tyler software. Tyler will not support use of software if the Snohomish, WA does not meet minimum standards of Tyler’s published specifications. 3.5 Environments and Databases

 Tyler will establish three (3) software environments and three (3) databases for the Project. The environments will be production, train and test. Each environment will have a corresponding database named the same as the environments; production database, train database and test database  The test environment will be used by Tyler to build the solution. Tyler will use the test database for testing and reviewing converted data. Tyler will also use the test database to present completed Deliverables to the Snohomish, WA for acceptance. Once Deliverables have been accepted, they will be moved to the production and train environments  The train database will be used by the Snohomish, WA for reviewing the converted data, testing, and training  At Production Cutover the production database will be used for processing daily functions 3.6 Education

 Throughout the Project lifecycle, the Snohomish, WA provides a training room for Tyler staff to transfer knowledge to the Snohomish, WA’s resources, for both onsite and remote sessions. The Snohomish, WA will provide staff with a location to practice what they have learned without distraction. If Phases overlap, the Snohomish, WA will provide multiple training facilities to allow for independent sessions scheduling without conflict.  The training room is set up in a classroom setting. The Snohomish, WA determines the number of workstations in the room. Tyler recommends every person attending a scheduled session with a Tyler Consultant or Trainer have their own workstation. However, Tyler requires there be no more than two (2) people at a given workstation.  The Snohomish, WA provides a workstation which connects to the Tyler system for the Tyler trainer conducting the session. The computer connects to a Snohomish, WA provided projector, allowing all attendees the ability to actively engage in the training session.  Tyler is responsible for providing formal training on all functional areas of the software to the Snohomish, WA’s designated Power Users. The Snohomish, WA will designate up to fifteen (15) Power Users for any specific class. The Power Users will vary based on agenda topics and area of

City Council Meeting 10 / 57 January 16, 2018 146 the assessment office that the class pertains to. Power Users will then be empowered with the knowledge to conduct training to Snohomish, WA End Users. In addition, informal education will occur leading up to the formal training sessions. Every time Tyler resources work with Snohomish, WA staff to demonstrate a specific function/feature/executable with the Snohomish, WA is an opportunity to better understand and appreciate the Tyler solution  Tyler will conduct one (1) formal training session for each of the functional areas of the software. The functional areas covered will allow the Snohomish, WA to utilize the software. The Snohomish, WA is responsible for assigning the appropriate Power Users to attend these sessions  Tyler follows a train‐the‐trainer approach to allow Snohomish, WA Power Users attending the sessions to disseminate the knowledge being learned during Tyler lead sessions to other Snohomish, WA users  Users performing User Acceptance Testing (UAT) have attended all applicable training sessions prior to performing UAT. 3.7 Assumption Mitigation

 In the event that any assumptions are not met or prove to be invalid the parties agree to work in good faith to mitigate any resulting issues 4 Implementation Stages 4.1 Work Breakdown Structure (WBS)

The Work Breakdown Structure (WBS) is a hierarchical representation of a Project or Stage broken down into smaller, more manageable components. The top level components are called “Stages” and the second level components are called “work packages.” The work packages, shown below each Stage, contain the high‐level work to be done. The detailed Project Plan, developed during Initiate & Plan and finalized during Assess & Define, will list the tasks to be completed within each work package. Each Stage ends with a “Control Point”, confirming the work performed during that Stage of the Project.

City Council Meeting 11 / 57 January 16, 2018 147

City Council Meeting 12 / 57 January 16, 2018 148 4.2 Initiate & Plan (Stage 1)

The Initiate & Plan Stage creates a foundation for the Project through identification of Snohomish, WA and Tyler Project management teams, development of implementation management plans, and the provision and discussion of system infrastructure requirements. Snohomish, WA participation in gathering information is critical. Tyler Project management teams present initial plans to stakeholder teams at Stage end. 4.2.1 Tyler Internal Coordination & Planning

Prior to Project commencement, Tyler management staff assigns Project Manager(s). Tyler provides the Snohomish, WA with initial Project documents used in gathering basic information, which aids in preliminary planning and scheduling. Snohomish, WA participation in gathering requested information by provided deadlines ensures the Project moves forward in a timely fashion. Internally, the Tyler Project Manager(s) coordinate with Sales to ensure transfer of vital information from the sales process prior to scheduling a Project Planning Meeting with the Snohomish, WA’s team. During this step, Tyler will work with the Client to establish the date(s) for the Project/Phase Planning session.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 1 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Assign Tyler Project Manager A R I I I Provide initial Project documents to A I R C I Client Sales to Implementation knowledge A I R C transfer Internal planning and phase A R C coordination

City Council Meeting 13 / 57 January 16, 2018 149

4.2.2 System Infrastructure Planning

The Snohomish, WA provides, purchases or acquires hardware according to hardware specifications provided by Tyler and ensures it is available at the Snohomish, WA’s site. The Snohomish, WA completes the system infrastructure audit, ensuring vital system infrastructure information is available to the Tyler implementation team, and verifies all hardware compatibility with Tyler solutions.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 1 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS

Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Provide system hardware I R A I C specifications Make hardware available for I C A R Installation Install system hardware, if applicable I C A R Complete system infrastructure audit I C A R

City Council Meeting 14 / 57 January 16, 2018 150 4.2.3 Project/Phase Planning

Project and Phase planning provides an opportunity to review the contract, software, data conversions and services purchased, identify Applications to implement in each Phase (if applicable), and discuss implementation timeframes. The Tyler Project Manager(s) deliver an Implementation Management Plan, which is mutually agreeable by Snohomish, WA and Tyler.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 1 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Perform Project/Phase Planning A R I C C I Deliver implementation management A R C C I plan

City Council Meeting 15 / 57 January 16, 2018 151

4.2.4 Project Schedule

Client and Tyler will mutually develop an initial Project schedule. The initial schedule includes, at minimum, enough detail to begin Project activities while the detailed Project Plan/schedule is being developed and refined.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 1 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS

Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Develop initial Project schedule A R I C I I Deliver Project Plan and schedule for A R I I I C C I I I Project Phase Client reviews Project Plan & initial C I A R C C C schedule Client approves Project Plan & initial I I A R C C I I I I I schedule

City Council Meeting 16 / 57 January 16, 2018 152 4.2.5 Stakeholder Presentation

Snohomish, WA stakeholders join Tyler Project Management to communicate successful Project criteria, Project goals, Deliverables, a high‐level milestone schedule, and roles and responsibilities of Project participants.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 1 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Present overview of Project Deliverables, project schedule and A R I I I I C I I I I I I I roles and responsibilities Communicate successful Project I R C A C I I C I I criteria and goals

City Council Meeting 17 / 57 January 16, 2018 153

4.2.6 Control Point 1: Initiate & Plan Stage Acceptance

Acceptance criteria for this Stage includes completion of all criteria listed below. Advancement to the Assess & Define Stage is dependent upon Tyler’s receipt of the Stage Acceptance.

4.2.6.1 Initiate & Plan Stage Deliverables

 Implementation Management Plan

o Objective: Update and deliver baseline management plans to reflect the approach to the Snohomish, WA’s Project. o Scope: The Implementation Management addresses how communication, quality control, risks/issues, resources and schedules, and Software Upgrades (if applicable) will be managed throughout the lifecycle of the Project. o Acceptance criteria: Snohomish, WA reviews and acknowledges Implementation Management Plan

 Project Plan/Schedule

o Objective: Provide a comprehensive list of tasks, timelines and assignments related to the Deliverables of the Project. o Scope: Task list, assignments and due dates o Acceptance criteria: Snohomish, WA acceptance of schedule based on Snohomish, WA resource availability and Project budget and goals. 4.2.6.2 Initiate & Plan Stage Acceptance Criteria

 Hardware Installed  System infrastructure audit complete and verified  Implementation Management Plan delivered  Project Plan/Schedule delivered; dates confirmed  Stakeholder Presentation complete

City Council Meeting 18 / 57 January 16, 2018 154 4.3 Assess & Define (Stage 2)

The primary objective of Assess & Define is to gather information about current Snohomish, WA business processes and translate the material into future business processes using Tyler Applications. Tyler uses a variety of methods for obtaining the information, all requiring Snohomish, WA collaboration. The Snohomish, WA shall provide complete and accurate information to Tyler staff for analysis and understanding of current workflows and business processes. 4.3.1 Fundamentals Review

Fundamentals Review provides functional leads and Power Users an overall understanding of software capabilities prior to beginning current and future state analysis. The primary goal is to provide a basic understanding of system functionality, which provides a foundation for upcoming conversations regarding future state processing. Tyler utilizes a variety of methods for completing fundamentals training including the use of eLearning, videos, documentation, and walkthroughs.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 2 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Schedule fundamentals review & provide fundamentals materials & A R I C I I I prerequisites, if applicable Complete fundamentals materials I A R I C review and prerequisites Ensure all scheduled attendees are I I A R C I present Facilitate fundamentals review A R I I I

City Council Meeting 19 / 57 January 16, 2018 155

4.3.2 Current/Future State Analysis

Snohomish, WA and Tyler evaluate current state processes, options within the new software, pros and cons of each option based on current or desired state, and make decisions about future state configuration and processing.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 2 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS

Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Provide Current/Future State analysis materials to the Snohomish, WA, as A R I C I I applicable Conduct Current & Future State A R I C I C analysis Provide pros and cons of Tyler A R I C I C software options Make Future State Decisions according to due date in the Project I I C A R I C I Plan Record Future State decisions A R I C I C

City Council Meeting 20 / 57 January 16, 2018 156 4.3.3 Data Conversion Planning & Mapping

This entails the activities performed to prepare to convert data from the Snohomish, WA’s Legacy System Applications to the Tyler system. Tyler staff and the Snohomish, WA work together to complete Data Mapping for each piece of data (as outlined in the Agreement) from the Legacy System to a location in the Tyler system.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 2 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Review contracted data conversion(s) A R I C C C C options Map data from Legacy System to Tyler I C I A C C R system Pull conversion data extract I I A C C R Run balancing Reports for data pulled I I A C R I and provide to Tyler Review and approve initial data A I C R I I extract Correct issues with data extract, if I C C A C C R needed

City Council Meeting 21 / 57 January 16, 2018 157

4.3.4 Standard 3rd Party Data Exchange Planning

Standard Data Exchange tools are available to allow clients to get data in and out of the Tyler system with external systems. Data exchange tools can take the form of Imports and Exports, and Interfaces.

A Standard Interface is a real‐time or automated exchange of data between two systems. This could be done programmatically or through an API. It is Tyler’s responsibility to ensure the Tyler programs operate correctly. It is the Snohomish, WA’s responsibility to ensure the third party program operates or accesses the data correctly.

The Snohomish, WA and Tyler Project Manager(s) will work together to define/confirm which Data Exchanges are needed (if not outlined in the Agreement). Tyler will provide a file layout for each Standard Data Exchange.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 2 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS

Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Review Standard or contracted Data A R C I I C Exchanges Define or confirm needed Data I C A C C R Exchanges

City Council Meeting 22 / 57 January 16, 2018 158 4.3.5 Customization Analysis & Specification, if contracted

Tyler staff conducts additional analysis and develops specifications based on information discovered during this Stage. The Snohomish, WA reviews the specifications and confirms they meet Snohomish, WA’s needs prior to acceptance. Out of Scope items or changes to specifications after acceptance may require a Change Request.

Tyler’s intention is to minimize Customizations by using Standard functionality within the Application, which may require a Snohomish, WA business process change. It is the responsibility of the Snohomish, WA to detail all of their needs during the Assess and Define Stage. Tyler will write up specifications (for Snohomish, WA approval) for contracted program Customizations. Upon approval, Tyler will make the agreed upon Customizations to the respective program(s). Once the Customizations have been delivered, the Snohomish, WA will test and approve those changes during the Build and Validate Stage.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 2 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Analyze contracted custom program A C R C C I C C requirements Develop specification document(s) A I C R I I I I Review specification document(s); I C C A R I C C provide changes to Tyler, if applicable Sign‐off on specification document(s) I I A R C I I C and authorize work

City Council Meeting 23 / 57 January 16, 2018 159

4.3.6 Forms & Reports Planning

Snohomish, WA and Tyler Project Manager(s) review Forms and Reporting needs. Items that may be included in the Agreement are either Standard Forms and Reports or known/included Customization(s). Items not included in the Agreement could be either Snohomish, WA‐developed Reports or a newly discovered Customization that will require a Change Request.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 2 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS

Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Review required Forms output A R C I C I Review and complete Forms options I I A R C and submit to Tyler Review in Scope Reports A R I C C Identify additional Report needs I C A R C Add applicable tasks to Project A R I C C I I I schedule

City Council Meeting 24 / 57 January 16, 2018 160 4.3.7 System Deployment

The Tyler Technical Services team installs Tyler Applications on the server (hosted or client‐based) and ensures the platform operates as expected.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 2 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Install contracted software on server A I R I C Ensure platform operates as expected A I R I C

City Council Meeting 25 / 57 January 16, 2018 161

4.3.8 Control Point 2: Assess & Define Stage Acceptance

Acceptance criteria for this Stage includes completion of all criteria listed below. Advancement to the Build & Validate Stage is dependent upon Tyler’s receipt of the Stage Acceptance.

4.3.8.1 Assess & Define Stage Deliverables

 Completed analysis Questionnaire

o Objective: Gather and document information related to Snohomish, WA business processes for current/future state analysis as it relates to Tyler approach/solution. o Scope: Provide comprehensive answers to all questions on Questionnaire(s). o Acceptance criteria: Snohomish, WA acceptance of completed Questionnaire based on thoroughness of capturing all Snohomish, WA business practices to be achieved through Tyler solution.

 Data conversion summary and specification documents

o Objective: Define data conversion approach and strategy o Scope: Data conversion approach defined, data extract strategy, conversion and reconciliation strategy. o Acceptance criteria: Data conversion document(s) delivered to the Snohomish, WA, reflecting complete and accurate conversion decisions.

 Customization specification documents, if contracted

o Objective: Provide comprehensive outline of identified gaps, and how the custom program meets the Snohomish, WA’s needs o Scope: Design solution for Customization o Acceptance criteria: Snohomish, WA accepts Custom Specification Document(s) and agrees that the proposed solution meets their requirements

 Completed Forms options and/or packages

o Objective: Provide specifications for each Snohomish, WA in Scope form, Report and output requirements o Scope: Complete Forms package(s) included in agreement and identify Reporting needs. o Acceptance criteria: Identify Forms choices and receive supporting documentation

 Installation checklist

o Objective: Installation of purchased Tyler software o Scope: Tyler will conduct an initial coordination call, perform an installation of the software included in the Agreement, conduct follow up to ensure all tasks are complete, and complete server system administration training, unless the Snohomish, WA is hosted. o Acceptance criteria: Tyler software is successfully installed and available to authorized users, Snohomish, WA team members are trained on applicable system administration tasks. 4.3.8.2 Assess & Define Stage Acceptance Criteria City Council Meeting 26 / 57 January 16, 2018 162  Tyler software is installed  Fundamentals review is complete  Required Form information complete and provided to Tyler  Current/Future state analysis completed; Questionnaires delivered and reviewed  Data conversion mapping and extractions completed and provided to Tyler

City Council Meeting 27 / 57 January 16, 2018 163

4.4 Build & Validate (Stage 3)

The objective of the Build & Validate Stage is to prepare the software for use in accordance with the Snohomish, WA’s needs identified during the Assess and Define Stage, preparing the Snohomish, WA for Final Testing and Training. 4.4.1 Configuration & Power User Training

Tyler staff collaborates with the Snohomish, WA to complete software configuration based on the outputs of the future state analysis performed during the Assess and Define Stage. Tyler staff will train the Snohomish, WA Power Users to prepare them for the Validation of the software. The Snohomish, WA collaborates with Tyler staff iteratively to Validate software configuration.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 3 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS

Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Perform configuration A R I R I Power User process and Validation A R I C I C I training Validate configuration I C A C R C

City Council Meeting 28 / 57 January 16, 2018 164 4.4.2 Data Conversion & Validation

Tyler completes an initial review of the converted data for errors. With assistance from the Snohomish, WA, the Tyler Data Conversion Team addresses items within the conversion program to provide the most efficient data conversion possible. With guidance from Tyler, the Snohomish, WA reviews specific data elements within the system and identifies and Reports discrepancies in writing. Iteratively, Tyler collaborates with the Snohomish, WA to address conversion discrepancies prior to acceptance.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 3 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Write and run data conversion A I C R C program against Client data Complete initial review of data errors A I C R I I C Review data conversion and submit I C I A C R C needed corrections Revise conversion program(s) to A I C R I I C C correct error(s)

City Council Meeting 29 / 57 January 16, 2018 165

4.4.3 Standard 3rd Party Data Exchange Validation

Tyler provides training on Data Exchange(s) and the Snohomish, WA tests each Data Exchange.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 3 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS

Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Train Data Exchange(s) processing in A R C I I I C I Tyler software Coordinate 3rd Party Data Exchange I I A C C R activities Test all Standard 3rd party Data I C A C I R C Exchange(s)

City Council Meeting 30 / 57 January 16, 2018 166 4.4.4 Customization Delivery & Validation, if contracted

Tyler delivers in Scope Customization(s) to the Snohomish, WA for preliminary testing. Final acceptance will occur during the Final Testing and Training Stage.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 3 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Develop and deliver contracted A I C I R I C I C I C custom program(s) Test contracted custom program(s) in I C C A C R C isolated database Report discrepancies between specification and delivered contracted I I I A R C C custom program(s) Make corrections to contracted A I C I R I C C I custom program(s) as required

City Council Meeting 31 / 57 January 16, 2018 167

4.4.5 Forms & Reports Validation

Tyler provides training on Standard Forms/Reports and the Snohomish, WA tests each Standard Form/Report.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 3 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS

Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Standard Forms & Report Training A R I C C I Test Standard Forms & Reports I C C A C R C

City Council Meeting 32 / 57 January 16, 2018 168 4.4.6 Control Point 3: Build & Validate Stage Acceptance

Acceptance criteria for this Stage includes all criteria listed below. Advancement to the Final Testing & Training Stage is dependent upon Tyler’s receipt of the Stage Acceptance.

4.4.6.1 Build & Validate Stage Deliverables

 Initial data conversion

o Objective: Convert Legacy System data into Tyler system o Scope: Data conversion program complete; deliver converted data for review o Acceptance criteria: Initial error log available for review

 Data conversion verification document

o Objective: Provide instructions to the Snohomish, WA to verify converted data for accuracy o Scope: Provide self‐guided instructions to verify specific data components in Tyler system o Acceptance criteria: Snohomish, WA accepts data conversion delivery; Snohomish, WA completes data issues log

 Installation of Customizations on the Snohomish, WA’s server(s) *except for hosted Clients

o Objective: Deliver Customization(s) in Tyler software o Scope: Program for Customization is complete and available in Tyler software, Customization testing o Acceptance criteria: Delivery of Customization(s) results in objectives described in the Snohomish, WA‐signed specification.

 Standard Forms & Reports Delivered

o Objective: Provide Standard Forms & Reports for review o Scope: Installation of all Standard Forms & Reports included in the Agreement o Acceptance criteria: Standard Forms & Reports available in Tyler software for testing in Stage 4 4.4.6.2 Build & Validate Stage Acceptance Criteria

 Application configuration completed  Standard Forms & Reports delivered and available for testing in Stage 4  Data conversions (except final pass) delivered  Standard 3rd party Data Exchange training provided  Customizations delivered and available for testing in Stage 4  The Snohomish, WA and Tyler have done a review of primary configuration areas to Validate completeness and readiness for testing and acceptance in Stage 4.

City Council Meeting 33 / 57 January 16, 2018 169

4.5 Final Testing & Training (Stage 4)

During Final Testing and Training, Tyler and the Snohomish, WA review the final Cutover plan. A critical Project success factor is the Snohomish, WA understanding the importance of Final Testing and Training and dedicating the resources required for testing and training efforts in order to ensure a successful Production Cutover. 4.5.1 Cutover Planning

Snohomish, WA and Tyler Project Manager(s) discuss final preparations and critical dates for Production Cutover. Tyler delivers a Production Cutover Checklist to outline Cutover tasks to help prepare the Snohomish, WA for success.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 4 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS

Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Cutover Planning Session A R C I C C C C C C Develop Production Cutover Checklist A R C I I C C I I C

City Council Meeting 34 / 57 January 16, 2018 170 4.5.2 User Acceptance Testing (UAT)

The Snohomish, WA performs User Acceptance Testing to verify software readiness for day‐to‐day business processing. Tyler provides a Test Plan for users to follow to ensure proper Validation of the system.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 4 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Deliver Test Plan for User Acceptance A R C I I Testing Perform User Acceptance Testing I C A R C C C I I C I Accept custom program(s), if I I I A R C I C C applicable Validate Report performance I C C A C R C

City Council Meeting 35 / 57 January 16, 2018 171

4.5.3 End User Training

End Users attend training sessions to learn how to utilize Tyler software. Training focuses primarily on day‐to‐day Snohomish, WA processes that will be delivered via group training, webinar, eLearnings and/or live training sessions.

Unless stated otherwise in the Agreement, Tyler provides one occurrence of each scheduled training or implementation topic with up to the maximum number of users as defined in the Agreement, or as otherwise mutually agreed. Snohomish, WA users who attended the Tyler sessions may train any Snohomish, WA users not able to attend the Tyler sessions or additional sessions may be contracted at the applicable rates for training.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 4 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS

Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Conduct user training sessions A R C I I I I I Conduct additional End User training I I A C I R I I I I sessions

City Council Meeting 36 / 57 January 16, 2018 172 4.5.4 Control Point 4: Final Testing & Training Stage Acceptance

Acceptance criteria for this Stage includes all criteria listed below. Advancement to the Production Cutover Stage is dependent upon Tyler’s receipt of the Stage Acceptance.

4.5.4.1 Final Testing & Training Stage Deliverables

 Production Cutover checklist

o Objective: Provide a detailed checklist outlining tasks necessary for production Cutover o Scope: Dates for final conversion, date(s) to cease system processing in Legacy System, date(s) for first processing in Tyler system, contingency plan for processing o Acceptance criteria: Definition of all pre‐production tasks, assignment of owners and establishment of due dates

 User Acceptance Test Plan

o Objective: Provide testing steps to guide users through testing business processes in Tyler software. o Scope: Testing steps for Standard business processes. o Acceptance criteria: Testing steps have been provided for Standard business processes. 4.5.4.2 Final Testing & Training Stage Acceptance Criteria

 Production Cutover Checklist delivered and reviewed  Customization(s) tested and accepted, if applicable  Standard 3rd party Data Exchange programs tested and accepted  Standard Forms & Reports tested and accepted  User acceptance testing completed  End User training completed

City Council Meeting 37 / 57 January 16, 2018 173

4.6 Production Cutover (Stage 5)

Snohomish, WA and Tyler resources complete tasks as outlined in the Production Cutover Plan and the Snohomish, WA begins processing day‐to‐day business transactions in the Tyler software. Following production Cutover, the Snohomish, WA transitions to the Tyler support team for ongoing support of the Application. 4.6.1 Final Data Conversion, if applicable

The Snohomish, WA provides final data extract and Reports from the Legacy System for data conversion and Tyler executes final data conversion. The Snohomish, WA may need to manually enter into the Tyler system any data added to the Legacy System after final data extract.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 5 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS

Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Provide final data extract C I I A C I I I I R Provide final extract balancing Reports I I A C R I Convert and deliver final pass of data A I I R I I I C Validate final pass of data I C C I A C R C Load final conversion pass to I I I A C I C R Production environment

City Council Meeting 38 / 57 January 16, 2018 174 4.6.2 Production Processing & Assistance

Tyler staff collaborates with the Snohomish, WA during Production Cutover activities. The Snohomish, WA transitions to Tyler software for day‐to day business processing.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 5 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Production processing C C I I A R R R R R R I I Provide production assistance A R C I C C C C C C

City Council Meeting 39 / 57 January 16, 2018 175

4.6.3 Transition to Tyler Support

Tyler Project Manager(s) introduce the Snohomish, WA to the Tyler Support team, who provides the Snohomish, WA with day‐to‐day assistance following Production Cutover.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 5 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS

Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Develop internal support plan I A R C C C C C C C Conduct transfer to Support meeting A I C R C C C C I I C I I

City Council Meeting 40 / 57 January 16, 2018 176 4.6.4 Schedule Post‐production Services, if applicable

Tyler provides post‐production services if included in the Agreement. Prior to scheduling services, the Tyler Project Manager(s) collaborate with Snohomish, WA Project Manager(s) to identify needs.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 5 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Identify topics for post‐production C C A R I C I services Schedule services for post‐production A R I C C I C I topics

City Council Meeting 41 / 57 January 16, 2018 177

4.6.5 Control Point 5: Production Cutover Stage Acceptance

Acceptance criteria for this Stage includes all criteria listed below. Advancement to the Phase/Project Closure Stage is dependent upon Tyler’s receipt of this Stage Acceptance.

4.6.5.1 Production Cutover Stage Deliverables

 Final data conversion, if applicable

o Objective: Ensure (in Scope) Legacy System data is available in Tyler software in preparation for production processing. o Scope: Final passes of all conversions completed in this Phase o Acceptance criteria: Data is available in production environment

 Support transition documents

o Objective: Define strategy for on‐going Tyler support o Scope: Define support strategy for day‐to‐day processing, conference call with Snohomish, WA Project Manager(s) and Tyler support team, define roles and responsibilities, define methods for contacting support o Acceptance criteria: the Snohomish, WA receives tools to contact support and understands proper support procedures. 4.6.5.2 Production Cutover Stage Acceptance Criteria

 Final data conversion(s) delivered  Processing is being done in Tyler production  Transition to Tyler support is completed  Post‐live services have been scheduled, if applicable

City Council Meeting 42 / 57 January 16, 2018 178

4.7 Phase/Project Closure (Stage 6)

Project or Phase closure signifies full implementation of all products purchased and encompassed in the Phase or Project. The Snohomish, WA moves into the next cycle of their relationship with Tyler (next Phase of implementation or long‐term relationship with Tyler Support). 4.7.1 Close Phase/Project

The Snohomish, WA and Tyler Project Manager(s) review the list of outstanding Project activities and develop a plan to address them. The Tyler Project Manager(s) review the Project budget and status of each contract Deliverable with the Snohomish, WA Project Manager(s) prior to closing the Phase or Project.

RACI MATRIX KEY: R = Responsible A = Accountable C = Consulted I = Informed

STAGE 6 Tyler Internal Coordination & Planning TYLER CLIENT

TASKS

Tyler Executive Manager Tyler Implementation Manager Tyler Project Manager Tyler Implementation Consultant Tyler Data Conversion Experts Tyler Forms & Reports Experts Tyler Customization Programmers Tyler Technical Support Tyler Sales Client Executive Sponsor Client Steering Committee Client Project Manager Client Functional Leads Client Change Management Leads Client Power Users Client Department Heads Client End Users Client Technical Leads Client Project Toolset Coordinator Client Upgrade Coordinator Review outstanding Project activities A R C C C I C I C and develop action plan Review Project budget and status of A R I I C contract Deliverables

City Council Meeting 43 / 57 January 16, 2018 179

4.7.2 Control Point 6: Phase/Project Closure Stage Acceptance

Acceptance criteria for this Stage includes all criteria listed below. This is the final acceptance for the Phase/Project.

4.7.2.1 Phase/Project Closure Stage Deliverables

 Phase/Project reconciliation report

o Objective: Provide comparison of contract Scope and Project budget o Scope: Contract Scope versus actual, analysis of services provided and remaining budget, identify any necessary Change Requests or Project activity. o Acceptance criteria: Acceptance of services and budget analysis and plan for changes, if needed. 4.7.2.2 Phase/Project Closure Stage Acceptance Criteria

 Outstanding Phase or Project activities have been documented and assigned  Phase/final Project budget has been reconciled  Tyler Deliverables for the Phase/Project are complete

City Council Meeting 44 / 57 January 16, 2018 180 5 Roles and Responsibilities 5.1 Tyler Roles and Responsibilities

Tyler assigns Project Manager(s) prior to the start of each Phase of the project. The Project Manager assigns additional Tyler resources as the schedule develops and as needs arise. One person may fill multiple project roles. 5.1.1 Tyler Executive Management

 Provides clear direction for Tyler staff on executing on the project deliverables to align with satisfying the Snohomish, WA’s overall organizational strategy  Authorizes required project resources  Resolves all decisions and/or issues not resolved at the implementation management level as part of the escalation process  Offers additional support to the project team and is able to work with other Tyler department managers in order to escalate and facilitate implementation project tasks and decisions  Acts as the counterpart to the Snohomish, WA’s executive sponsor 5.1.2 Tyler Implementation Management

 Acts as the counterpart to the Snohomish, WA steering committee.  Assigns initial Tyler project personnel  Works to resolve all decisions and/or issues not resolved at the project Management level as part of the escalation process  Attends Snohomish, WA steering committee meetings as necessary  Provides support for the project team  Provides management support for the project to ensure it is staffed appropriately and staff have necessary resources  Monitors project progress including progress towards agreed upon goals and objectives 5.1.3 Tyler Project Manager

The Tyler Project Manager(s) provides oversight of the project, coordination of resources between departments, management of the project budget and schedule, effective risk and issue management, and is the primary point of contact for all project related items.

 Contract Management

o Validates contract compliance throughout the project o Ensures Deliverables meet contract requirements o Acts as primary point of contact for all contract and invoicing questions o Prepares and presents contract milestone sign‐offs for acceptance by Snohomish, WA Project Manager(s) o Coordinates Change Requests, if needed, to ensure proper Scope and budgetary compliance

City Council Meeting 45 / 57 January 16, 2018 181

 Planning

o Update and deliver Implementation Management Plan o Defines project tasks and resource requirements o Develops initial project schedule and full scale Project Plan o Collaborates with Snohomish, WA Project Manager(s) to plan and schedule project timelines to achieve on‐time implementation

 Implementation Management

o Tightly manages Scope and budget of project; establishes process and approval matrix with the Snohomish, WA to ensure Scope changes and budget planned versus actual are transparent and handled effectively and efficiently o Establishes and manages a schedule and resource plan that properly supports the project Plan as a whole that is also in balance with Scope/budget o Establishes risk/issue tracking/reporting process between the Snohomish, WA and Tyler and takes all necessary steps to proactively mitigate these items or communicates with transparency to the Snohomish, WA any items that may negatively impact the outcomes of the project o Collaborates with the Snohomish, WA’s Project Manager(s) to establish key business drivers and success indicators that will help to govern project activities and key decisions to ensure a quality outcome of the project o Sets a routine communication plan that will aide all project team members, of both the Snohomish, WA and Tyler, in understanding the goals, objectives, current status and health of the project

 Team Management

o Acts as liaison between project team and Tyler manager(s) o Identifies and coordinates all Tyler resources across all modules, Phases, and activities including development, conversions, forms, installation, reports, implementation, and billing o Provides direction and support to project team o Builds partnerships among the various stakeholders, negotiating authority to move the project forward o Manages the appropriate assignment and timely completion of tasks as defined in the project Plan, task list, and Production Cutover checklist o Assesses team performance and adjusts as necessary o Interfaces closely with Tyler developers to coordinate program Modification activities o Coordinates with in Scope 3rd party providers to align activities with ongoing project tasks 5.1.4 Tyler Implementation Consultant

 Completes tasks as assigned by the Tyler Project Manager(s)  Performs problem solving and troubleshooting  Follows up on issues identified during sessions  Documents activities for on site services performed by Tyler  Provides conversion Validation and error resolution assistance  Recommends guidance for testing Forms and Reports  Tests software functionality with the Snohomish, WA following configuration City Council Meeting 46 / 57 January 16, 2018 182  Assists during Production Cutover process and provides production support until the Snohomish, WA transitions to Tyler Support  Provides product related education  Effectively facilitates training sessions and discussions with Snohomish, WA and Tyler staff to ensure adequate discussion of the appropriate agenda topics during the allotted time  Conducts training (configuration, process, conversion Validation) for Power Users and the Snohomish, WA’s designated trainers for End Users  Clearly documents homework tasks with specific due dates and owners, supporting and reconciling with the final project plan  Keeps Tyler Project Manager(s) proactively apprised of any and all issues which may result in the need for additional training, change in schedule, change in process decisions, or which have the potential to adversely impact the success of the project prior to taking action 5.1.5 Tyler Sales

 Provide Sales background information to Implementation during Project Initiation  Support Sales transition to Implementation  Provide historical information, as needed, throughout implementation 5.1.6 Tyler Software Support

 Manages incoming client issues via phone, email, and online customer incident portal  Documents and prioritizes issues in Tyler’s Customer Relationship Management (CRM) system  Provides issue analysis and general product guidance  Tracks issues and tickets to timely and effective resolution  Identifies options for resolving reported issues  Reports and escalates defects to Tyler Development  Communicates with the Snohomish, WA on the status and resolution of reported issues 5.1.7 Tyler Basic Network Support

 Manages incoming Snohomish, WA issues via phone, email, online customer incident portal, and from Software Support  Provides system support including remote support of Snohomish, WA systems, operating systems, network and local printing, and SQL assistance for the systems and platform directly attributable to the Tyler Applications  Tracks issues and tickets to timely and effective resolution  Determine root cause and provide solutions or provide direction/escalation to Tyler Development  Consult on pre‐sales in regards to system requirements 5.1.8 Tyler Disaster Recovery Support

 Conduct and monitor nighltly backups of Snohomish, WA databases at hosting facility, transfer nighly backups to Tylers data center.  Provides services to host Application in the event of a disaster  Provides 24 hour RPO – Recover Point Objective  Provides emergency response within 2 business hours

City Council Meeting 47 / 57 January 16, 2018 183

 Ensure Tyler Application availability within 8 business hours  Provide one annual disaster planning walkthrough 5.2 Snohomish, WA Roles and Responsibilities

Snohomish, WA resources will be assigned prior to the start of each Phase of the project. One person may be assigned to multiple project roles. 5.2.1 Snohomish, WA Executive Sponsor

 Provides clear direction for the Project and how the Project applies to the organization’s overall strategy  Champions the project at the executive level to secure buy‐in  Authorizes required project resources  Resolves all decisions and/or issues not resolved at the Snohomish, WA steering committee level as part of the escalation process  Actively participates in organizational change communications 5.2.2 Snohomish, WA Steering Committee

 Works to resolve all decisions and/or issues not resolved at the Project Manager level as part of the escalation process  Attends all scheduled steering committee meetings  Provides support for the project team  Assists with communicating key project messages throughout the organization  Prioritizes the project within the organization  Provides management support for the project to ensure it is staffed appropriately and staff have necessary resources  Monitors project progress including progress towards agreed upon goals and objectives  Has the authority to approve or deny changes impacting the following areas:

o Cost o Scope o Schedule o project Goals o Snohomish, WA Policies 5.2.3 Snohomish, WA Project Manager

The Snohomish, WA shall assign Project Manager(s) prior to the start of this project with overall responsibility and authority to make decisions related to project Scope, scheduling, and task assignment, and communicates decisions and commitments to the Tyler Project Manager(s) in a timely and efficient manner. When the Snohomish, WA Project Manager(s) do not have the knowledge or authority to make decisions, he or she engages the correct resources from Snohomish, WA to participate in discussions and make decisions in a timely fashion to avoid project delays.

 Contract Management

City Council Meeting 48 / 57 January 16, 2018 184 o Validates contract compliance throughout the project o Ensures invoicing and Deliverables meet contract requirements o Acts as primary point of contact for all contract and invoicing questions o Signs off on contract milestone acknowledgment documents o Collaborates on and approves Change Requests, if needed, to ensure proper Scope and budgetary compliance

 Planning

o Review and acknowledge Implementation Management Plan o Defines project tasks and resource requirements for County project team o Collaborates in the development and approval of the initial Project Plan and Project Plan o Collaborates with Tyler Project Manager(s) to plan and schedule project timelines to achieve on‐time implementation

 Implementation Management

o Tightly manages project budget and Scope and collaborates with Tyler Project Manager(s) to establish a process and approval matrix to ensure Scope changes and budget planned versus actual are transparent and handled effectively and efficiently o Collaborates with Tyler Project Manager to establish and manage a schedule and resource plan that properly supports the project Plan, as a whole, that is also in balance with Scope/budget o Collaborates with Tyler Project Manager(s) to establishes risk/issue tracking/reporting process between the Snohomish, WA and Tyler and takes all necessary steps to proactively mitigate these items or communicates with transparency to Tyler any items that may impact the outcomes of the project o Collaborates with Tyler Project Manager(s) to establish key business drivers and success indicators that will help to govern project activities and key decisions to ensure a quality outcome of the project o Routinely communicates with both Snohomish, WA staff and Tyler, aiding in the understanding of goals, objectives, current status, and health of the project by all team members

 Team Management

o Acts as liaison between project team and stakeholders o Identifies and coordinates all Snohomish, WA resources across all modules, Phases, and activities including data conversions, forms design, hardware and software installation, reports building, and satisfying invoices o Provides direction and support to project team o Builds partnerships among the various stakeholders, negotiating authority to move the project forward o Manages the appropriate assignment and timely completion of tasks as defined in the project plan, task list, and production cutover checklist o Assesses team performance and takes corrective action, if needed o Provides guidance to Snohomish, WA technical teams to ensure appropriate response and collaboration with Tyler technical support teams to ensure timely response and appropriate resolution

City Council Meeting 49 / 57 January 16, 2018 185

o Coordinates in Scope 3rd party providers to align activities with ongoing project tasks 5.2.4 Snohomish, WA Functional Leads

 Makes business process change decisions under time sensitive conditions  Communicates existing business processes and procedures to Tyler consultants  Assists in identifying business process changes that may require escalation  Attends and contributes business process expertise for current/future state analysis sessions  Identifies and includes additional subject matter experts to participate in current/future state analysis sessions  Provides business process change support during Power User and End User training  Completes performance tracking review with client project team on End User competency on trained topics  Provides Power and End Users with dedicated time to complete required homework tasks  Act as an ambassador/champion of change for the new process.  Identifies and communicates any additional training needs or scheduling conflicts to Snohomish, WA Project Manager  Prepares and Validates Forms  Actively participates in all aspects of the implementation, including, but not limited to, the following key activities:

o Task completion o Stakeholder Presentation o Implementation Management Plan development o Schedule development o Maintenance and monitoring of risk register o Escalation of issues o Communication with Tyler project team o Coordination of Snohomish, WA resources o Attendance at scheduled sessions o Change Management activities o Customization specification, demonstrations, testing and approval assistance o Conversion Analysis and Verification Assistance o Decentralized End User Training o Process Testing o User Acceptance Testing 5.2.5 Snohomish, WA Power Users

 Participate in project activities as required by the project team and Project Manager(s)  Provide subject matter expertise on Snohomish, WA business processes and requirements  Act as subject matter experts and attend current/future state and validation sessions as needed  Attend all scheduled training sessions  Participate in all required post‐training processes as needed throughout project  Participate in conversion Validation  Test all Application configuration to ensure it satisfies business process requirements  Become Application experts

City Council Meeting 50 / 57 January 16, 2018 186  Participate in User Acceptance Testing  Adopt and support changed procedures  Complete all Deliverables by the due dates defined in the Project Plan  Demonstrate competency with Tyler products processing prior to Production Cutover  Provide knowledge transfer to Snohomish, WA staff during and after implementation 5.2.6 Snohomish, WA End Users

 Attend all scheduled training sessions  Become proficient in Application functions related to job duties  Adopt and utilize changed procedures  Complete all Deliverables by the due dates defined in the Project Plan  Utilize software to perform job functions at and beyond Production Cutover 5.2.7 Snohomish, WA Technical Support

 Coordinates updates and releases with Tyler as needed  Coordinates the copying of source databases to training/testing databases as needed for training days  Extracts and transmits conversion data and control reports from Snohomish, WA’s Legacy System per the conversion schedule set forth in the Project Plan  Coordinates and adds new users and printers and other Peripherals as needed  Validates all users understand log‐on process and have necessary permission for all training sessions  Coordinates Interface development for Snohomish, WA 3rd party Data Exchanges.  Develops or assists in creating Reports as needed  Ensures onsite system hardware meets specifications provided by Tyler  Assists with software deployment as needed 5.2.8 Snohomish, WA Upgrade Coordinator

 Becomes familiar with the Software Upgrade process and required steps  Becomes familiar with Tyler’s releases and updates  Utilizes Tyler Community to stay abreast of the latest Tyler releases and updates, as well as the latest helpful tools to manage the Snohomish, WA’s Software Upgrade process  Assists with the Software Upgrade process during implementation  Manages Software Upgrade activities post‐implementation  Manages Software Upgrade plan activities  Coordinates Software Upgrade plan activities with Snohomish, WA and Tyler resources  Communicates changes affecting users and department stakeholders  Obtains department stakeholder sign‐offs to upgrade production environment 5.2.9 Snohomish, WA project Toolset Coordinator

 Ensures users have appropriate access to Tyler project toolsets such as Tyler University, Tyler Community, Tyler Product Knowledgebase, SharePoint, etc.  Conducts training on proper use of toolsets City Council Meeting 51 / 57 January 16, 2018 187

 Validates completion of required assignments using toolsets 5.2.10 Snohomish, WA Change Management Lead

 Validates users receive timely and thorough communication regarding process changes  Provides coaching to Supervisors to prepare them to support users through the project changes  Identifies the impact areas resulting from project activities and develops a plan to address them proactively  Identifies areas of resistance and develops a plan to reinforce the change  Monitors post‐production performance and new process adherence

6 Glossary

Word or Term Definition Accountable The person who is ultimately accountable for decisions being made on a task. Application A computer program designed to perform a group of coordinated functions, tasks or activities for the benefit of the user. Build Blueprint A document recording future state decisions intended to allow Tyler to satisfy business needs/requirements during the Build & Validate Stage through configuration and setups to develop the final solution. A means for the Snohomish, WA to Validate what was agreed to be in Scope has been Delivered. Business Requirements A specification document used to describe Snohomish, WA Document requirements not available through Tyler software functionality, which will lead to a Modification with Snohomish, WA acceptance. Change Control A systematic approach for managing change governing how Change Requests will be received, assessed and acted on.

Change Management An approach for ensuring that changes are thoroughly and smoothly implemented and that the lasting benefits of change are achieved. The focus is on the global impact of change with an intense focus on people and how individuals and teams move from the current situation to the new one. Change Request A form used as part of the Change Control process whereby changes in the Scope of work, timeline, resources, and/or budget are revised and agreed upon by participating parties. Consulted Anyone who must be consulted with prior to a decision being made and/or the task being completed Consumables Items that are used on a recurring basis, usually by Peripherals. Examples: paper stock or scanner cleaning kits. Control Point Occurring at the end of each Stage, the Control Point serves as a formal client review point. Project progress cannot continue until the client acknowledges the agreed upon Deliverables of the Stage have been City Council Meeting 52 / 57 January 16, 2018 188 met, or agree on an action plan to make the Deliverable acceptable and move to next Stage while executing final steps of current Stage. Data Exchange A term used to reference Imports and Exports, and Interfaces which allow data to be exchanged between an external system and Tyler software. Data Mapping The process of mapping fields from the Legacy System to the appropriate location in the new system from one or more sources. Deliverable A tangible or intangible object/document produced as a result of the Project that is intended to be delivered to a client (either internal or external) or vendor at a specific time. End User The person for whom the software is designed to use on a day‐to‐day basis. Forms A document which is typically printed on a template background and only captures data for one record per page. Forms are provided to entity customers whether internal (employees) or external (citizens). Imports and Exports A process within the system that a user is expected to run to consume (Import) or produce (Export) a specifically defined file format/layout. Informed Anyone who will be updated when decisions are made or a task is completed. Install References the initial Installation of software files on client servers and preparing the software for use during configuration. The version currently available for general release will always be used during the initial Install. Interface A real‐time or automated exchange of data between two systems.

Legacy System The system from which a client is converting.

Modification Modification of software program package to provide individual client requirements documented within the Scope of the Agreement. Peripherals An auxiliary device that connects to and works with the computer in some way. Examples: mouse, keyboard, scanner, external drive, microphone, speaker, webcam, and digital camera. Phase A portion of the Project in which specific set of related products are typically implemented. Phases each have an independent start, Production Cutover and closure dates but use the same Implementation Plans as other Phases within the Project. Phases may overlap or be sequential and may have the same Tyler Project Manager and Tyler project team or different individuals assigned. Power User An experienced client person or group who is (are) an expert(s) in the client business processes, as well as knowledgeable in the requirements and acceptance criteria.

City Council Meeting 53 / 57 January 16, 2018 189

Production Cutover The Snohomish, WA is using the Tyler software to conduct daily operations.

Project The Project includes all implementation activity from Plan & Initiate to Closure for all products, Applications and functionality included in a single Agreement. The Project may be broken down into multiple Phases. Project Plan The Project Plan serves as the master roadmap for the Project. The Project Plan will be the detailed task list of the essential activities to be performed to complete the Project. Each activity will have owner(s), participant(s) if applicable, start date, and due dates. The Project Plan is a living document and will be updated quarterly with the detailed tasks for the next future quarter; only high level tasks with rough timeframes will be plotted out beyond this. Project Planning Meeting Occurs during the Plan & Initiate Stage to coordinate with the Client Project Manager to discuss Scope, information needed for project scheduling and resources. RACI A chart describing level of participation by various roles in completing tasks or Deliverables for a Project or process. Also known as a responsibility assignment matrix (RAM) or linear responsibility chart (LRC). Reports Formatted to return information related to multiple records in a structured format. Information is typically presented in both detail and summary form for a user to consume. Responsible The person who will be completing the task. Scope Products and services that are included in the Agreement.

Software Upgrade References the act of updating software files to a newer software release. Stage The top‐level components of the WBS. Each Stage is repeated for individual Phases of the Project and requires acknowledgement before continuing to the next Stage. Some tasks in the next Stage may begin before the prior Stage is complete. Stakeholder Presentation Representatives of the Tyler implementation team will meet with key client representatives to present high level project expectations and outline how Tyler and the Client can successfully partner to create an environment for a successful implementation. Standard Included in the base software (out of the box) package.

Statement of Work (SOW) Document which will provide supporting detail to the Agreement defining project ‐specific activities and Deliverables Tyler will provide to the client. Validation (or to validate) The process of testing and approving that a specific Deliverable, process, program or product is working as expected.

City Council Meeting 54 / 57 January 16, 2018 190 Work Breakdown Structure A hierarchical representation of a Project or Phase broken down into (WBS) smaller, more manageable components.

7 Incode 10 Conversion Summary 7.1 General Ledger – Chart of Accounts

 Full chart of accounts listing, descriptions, and corresponding account types  Element (segment) values and descriptions 7.2 General Ledger – Legacy/Historical Views

 Unlimited historical transactions provided by client can be converted by Tyler into historical views 7.3 Accounts Payable – Vendor Master

 Vendor master information, address, primary contact, and notes 7.4 Accounts Payable – Legacy/Historical Views

 Unlimited historical transactions provided by client can be converted by Tyler into historical views 7.5 Personnel Management/Payroll ‐ Standard

 Basic employee information – employee master, address, primary contact, dates, phone numbers, dependents, notes  Current direct deposit bank information  Federal and state tax withholding information 7.6 Personnel Management/Payroll – Legacy/Historical Views

 Unlimited historical transactions provided by client can be converted by Tyler into historical views 7.7 Utility Billing ‐ Standard

 Utility Contact Information  Utility Mailing and Billing Addresses  Utility Parcels  Account Master ‐ (Average monthly payment, deposits, bank drafts, comments/notes)  Meters/Services  Transaction History – Includes current year plus one prior year City Council Meeting 55 / 57 January 16, 2018 191

 Read History 7.8 Utility Billing – Legacy/Historical Views

 Unlimited historical transactions provided by client can be converted by Tyler into historical views 8 EnerGov Conversion Summary 8.1 Permitting

 Permit master basic information  Parcels and Addresses  Inspections – Converted to one legacy Inspection type. Original Inspection type will be visible in the workflow section  Sub‐Permit Associations – Visible in workflow and attached records section  Fees – Converted to one legacy Fee type. Original Fee type will be visible in fees tab  Type – Converted to one legacy Permit type. Original Permit type will be converted as a memo custom field  Classification – Converted to one legacy Permit classification. Original Permit classification will be converted as a memo custom field  Notes  Payment and Fee history – Converted to one legacy Fee type  Converted as Memo Custom fields

o Contacts and Contact Addresses o Type o Classification o Bonds and Escrow o Zones o Activities and Actions o Holds o Conditions 8.2 Business and Professional Licensing

 Business entity  License master basic information  Contacts – Unique (keyed) contacts converted to global contacts  Non‐keyed contacts converted to Memo Custom field  Parcel and Addresses  Inspections – Converted to one legacy Inspection type. Original Inspection type will be visible in the workflow section  Fees  Holds  Conditions

City Council Meeting 56 / 57 January 16, 2018 192  Notes  Contractors  Business Types & NAICS codes  Payment and Fee history  Converted as memo custom fields

o Bonds and Escrow o Activities and Actions

City Council Meeting 57 / 57 January 16, 2018 193

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City Council Meeting January 16, 2018 194 ACTION ITEM 5d

Date: January 16, 2018

To: City Council

From: Glen Pickus, AICP, Planning Director

Subject: Supervised Drug Injection Site Facilities Interim Regulations

SUMMARY: The City’s zoning code does not anticipate “Supervised Drug Injection Site Facilities”. Adoption of interim regulations as described in Ordinance 2344 will provide staff the opportunity to develop permanent regulations before such a facility is located in the City.

BACKGROUND: Supervised drug injection site facilities are legally-sanctioned medically- supervised facilities designed to reduce nuisance from public drug use and to provide a hygienic and stress-free environment in which individuals are able to consume illicit recreational drugs intravenously. They are sometimes referred to as “safe injection sites”.

Title 14 of the Snohomish Municipal Code (SMC), Land Use Development Code, does not address supervised drug injection site facilities. SMC 14.207.080 – General Services Land Use Table, lists “Health Services” land uses and describes in which land use designation areas those uses are allowed. Specific uses included under the umbrella category of Health Services includes “Miscellaneous health” which is a permitted use in the Commercial, Historic Business District, Business Park, Industrial, and Mixed Use land use designation areas. “Supervised drug injection site facility” is not a listed in the table.

The Revised Code of Washington (RCW) 35A.63.220 allows jurisdictions to enact interim zoning regulations and moratoria to preserve the status quo without prior notice or a public hearing, provided a public hearing is held within 60 days of adoption of the interim ordinance. The moratorium or interim regulations may be effective for up to six months and may be renewed for one or more six-month periods if a subsequent public hearing is held prior to the expiration of the original ordinance.

In 2016, the King County Heroin and Opiate Addiction Task Force issued a final report and recommendations. One of the recommendations (on page 26 of the report) is to establish at least two sites, on a pilot program basis, where supervised consumption of drugs is allowed and low-barrier access to on-site health services and screenings, referrals, and other supportive services are provided.

In September, Snohomish County passed a six-month moratorium on locating a supervised drug injection site in unincorporated parts of the county. Other jurisdictions within the state have also enacted or are considering similar moratoria while they consider permanent regulations.

PROPOSAL: SMC 14.207.080 could be interpreted to allow the permitting of a supervised drug injection site facility as a “Miscellaneous health” land use.

Ordinance 2344 creates interim regulations that would prohibit the siting and permitting of a supervised drug injection site facility in the City for six months. During that time staff can conduct research and draft permanent regulations to govern the siting and permitting of such facilities.

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The ordinance proposes two interim changes to SMC: 1. Add a definition for “supervised drug injection site facility” to SMC 14.100 - Definitions; and 2. Add a “supervised drug injection site facility” land use line to the “General Services Land Use Table” in SMC 14.207.080 and leave the box under all of the land use designation areas blank indicating the use is not allowed anywhere in the City.

NEXT STEPS: Pursuant to RCW 35A.63.220, the City Council must hold a public hearing on the interim regulations within 60 days of approval of Ordinance 2344. That public hearing is tentatively scheduled for February 20, 2018, which is 35 days from today.

After the public hearing, staff will begin researching the issues surrounding supervised drug injection site facilities and start the process for adopting permanent regulations. That process includes notification to the Department of Commerce, SEPA review, and at a minimum, a Planning Commission public hearing and a City Council public hearing. Attachment B shows a timeline for the process.

BUDGETARY IMPACTS: None.

STRATEGIC PLAN REFERENCE: Not applicable.

COMPREHENSIVE PLAN REFERENCE(S): Not applicable.

RECOMMENDATION: That the City Council ADOPT Ordinance 2344 as written, approving interim regulations prohibiting the permitting and siting of supervised drug injection site facilities within the City.

ALTERNATIVES: 1. Do not approve Ordinance 2344, but direct staff to research and draft permanent regulations regarding the permitting and siting of supervised drug injection site facilities, which could include a ban on such facilities.

2. Do not approve Ordinance 2344.

ATTACHMENTS:

A. Ordinance 2344 B. Supervised Drug Injection Site Facilities Code Amendment Timeline

REFERENCE DOCUMENTS:

1. SMC 14.207.080 2. RCW 35A.63.220 3. King County Heroin and Opiate Addiction Task Force Final Report and Recommendations

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ATTACHMENT A

CITY OF SNOHOMISH Snohomish, Washington

ORDINANCE 2344

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SNOHOMISH, WASHINGTON RELATING TO GROWTH MANAGEMENT, ADOPTING AN INTERIM OFFICIAL CONTROL PROHIBITING THE PERMITTING AND SITING OF SUPERVISED DRUG INJECTION SITE FACILITIES; AMENDING SMC 14.100 AND SMC 14.207.080; SETTING A DATE FOR PUBLIC HEARING AND PROVIDING FOR SEVERABILITY.

WHEREAS, in March 2016, King County and the cities of Seattle, Renton, and Auburn convened a Heroin and Opioid Addiction Task Force; and

WHEREAS, in September 2016, the Heroin and Opioid Addiction Task Force released a report with recommendations to prevent opioid addiction and improve opioid use disorder outcomes in King County; and

WHEREAS, one of the recommendations of the Heroin and Opioid Addiction Task Force was to establish, on a pilot program basis, at least two sites for supervised opioid consumption in King County; and

WHEREAS, Snohomish does not currently regulate the siting and establishment of supervised drug injection site facilities; and

WHEREAS, the City Council has concerns about negative impacts to the community resulting from supervised drug injection site facilities; and

WHEREAS, the City Council wishes to research, study and explore options for regulating the siting and establishment of supervised drug injection site facilities, including potentially prohibiting the siting and establishment of such facilities within the City; and

WHEREAS, without adequate regulations and review processes, new supervised drug injection site facilities may locate in areas that would create negative impacts and potential public safety issues for the City; and

WHEREAS, the City Council wishes to prevent supervised drug injection site facilities or uses from siting or commencing such use in the City during the period of time necessary for the City to research, study and consider appropriate regulations for such facilities; and

WHEREAS, Snohomish is an optional municipal code City and RCW 35A.11.020 confers broad legislative powers on the City’s Council;

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WHEREAS among the City’s powers is the power to plan and zone under Chapter 35A.63 RCW;

WHEREAS, RCW 35A.63.220 provides that the City Council may adopt a moratorium, interim zoning ordinance, interim zoning map, and/or interim official control; and

WHEREAS, RCW 36.70A.390 authorizes the City Council to adopt an immediate moratorium, interim zoning ordinance, interim zoning map, and/or interim official control for a period of up to twelve (12) months if a public hearing on the proposal is held within at least sixty (60) days of its adoption and a work plan is developed for related studies providing for the period; and

WHEREAS, moratoria, interim zoning ordinances, interim zoning maps, and interim official controls enacted under RCW 35A.63.220 are methods by which local governments may preserve the status quo so that new regulations will not be rendered moot by intervening development.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SNOHOMISH, WASHINGTON DO ORDAIN AS FOLLOWS:

Section 1. The City Council makes the following findings and conclusions:

A. The City Council adopts and incorporates the foregoing recitals as findings as is set forth fully herein. B. Proposals to open supervised drug injection site facilities within the region have highlighted the lack of regulation of such facilities and uses within the City. C. The interim zoning regulations in SMC 14.100 and SMC 14.207.080 will prohibit new supervised drug injection site facilities from locating or establishing such a use in the City while regulations that address the siting of supervised drug injection site facilities, including the possibility of prohibiting such facilities entirely, are considered. D. It is in the best interest of Snohomish to prohibit supervised drug injection site facilities from locating or establishing such a use in the City at this time, pending further research, study and public engagement on potential long-term regulatory changes. E. The proposed interim official control will promote the public health, safety, morals, and general welfare, and it is consistent with the goals and policies of the City’s Comprehensive Plan. F. This ordinance satisfies the procedural and substantive requirements of and is consistent with the Growth Management Act.

Section 2. Chapter 14.100 Snohomish Municipal Code, Definitions, is hereby amended to add a definition for “Supervised drug injection site facility” as follows. The current definitions in the chapter remain unchanged:

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Supervised Drug Injection Site Facility means a legally-supervised medically-supervised facility designed to provide a location where individuals are able to consume illicit drugs intravenously. “Supervised Drug Consumption Facility” and “Safe Injection Site” mean the same as Supervised Drug Injection Site Facility.

Section 3. Snohomish Municipal Code Section 14.207.080, General Services Land Use Table, is hereby amended to read as follows:

Use

Land Use Open Space Public Park Urban Horticulture Single Residential Family Residential Low Density Medium Residential High Residential Density Density Commercial Neighborhood Business BusinessHistoric District Business Park Industrial Industry Airport Mixed

Personal Services

Adult uses p7

Automotive repair p p1 p1 p p1

Automotive service p p p p p p

Cemetery, columbarium or p p p p mausoleum

Childcare c p2 p2 p2 p2 p2 p p2

Childcare, family – 12 c c c c c c c c c children or less

Childcare, family – 6 children c p p p p p p p p or less

Church, synagogue, temple, c9 c c c p p p p p p mosque

Community stable c p c

Funeral home/crematory p p p p

General personal services p p p p p p

Industrial launderers p p

Commercial kennel or p4 p4 p p p

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Use

Land Use Open Space Public Park Urban Horticulture Single Residential Family Residential Low Density Medium Residential High Residential Density Density Commercial Neighborhood Business BusinessHistoric District Business Park Industrial Industry Airport Mixed

cattery

Animal grooming w/o p p p p p kenneling/boarding

Miscellaneous repair p p p p p p

Social services p p p c c

Veterinary clinic w/o c8 p4 p4 p4 p p4 kenneling/boarding

Veterinary clinic w/ c8 p4 p4 p p4 kenneling/boarding

Health Services

Hospital p p p p p

Medical/dental lab p p p p p

Miscellaneous health p p p p p

Nursing/convalescent home c6 c p p p p p p p

Office/patient clinic p p p p p

Congregate care/assisted c6 c p p p p p p living

Supervised drug injection site facility

Education Services

Elementary or middle/junior c c c c p p p

School district support c c c p p p p p5 facility

Secondary or high school c c c c p p p

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Use

Land Use Open Space Public Park Urban Horticulture Single Residential Family Residential Low Density Medium Residential High Residential Density Density Commercial Neighborhood Business BusinessHistoric District Business Park Industrial Industry Airport Mixed

Specialized instruction c c c c c p p p p p school

Vocational school c c c p p p p p p

Section 4. Expiration. The interim zoning regulations in sections 2, and 3 of this ordinance shall automatically expire and be deemed to have been repealed 6 months from the date of adoption unless renewed or otherwise extended prior to such date in accordance with RCW 35A.63.220.

Section 5. Public hearing. The City Council will hold a public hearing on this matter on February 20, 2018, at the hour of 7:00 p.m. at 1601 Avenue D, Snohomish, Washington , or as soon thereafter on that date and time as the hearing can be commenced for the purpose of hearing public testimony on this matter in accordance RCW 35A.63.220. The notice for the public hearing shall specifically indicate that this ordinance may be renewed for one or more six month periods if a subsequent public hearing is held and findings of fact are made prior to each renewal.

Section 6. Renewal. In accordance with RCW 35A.63.220, this ordinance may be renewed for one or more six month periods if a subsequent public hearing is held and findings of fact are made prior to each renewal.

Section 7. Severability. If any section, sentence, clause or phrase of this ordinance shall be held to be invalid or unconstitutional by the Growth Management Hearings Board, or a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. Provided, however, that if any section, sentence, clause or phrase of this ordinance is held to be invalid by the Board or court of competent jurisdiction, then the section, sentence, clause or phrase in effect prior to the effective date of this ordinance shall be in full force and effect for that individual section, sentence, clause or phrase as if this ordinance had never been adopted.

Section 9. Effective Date. This ordinance shall take effect five days after the date of its publication by summary and passage.

City Council Meeting January 16, 2018 201 ACTION ITEM 5d

ADOPTED by the City Council and APPROVED by the Mayor this 16th day of January, 2018.

CITY OF SNOHOMISH

John T. Kartak, Mayor

ATTEST:

By Pat Adams, City Clerk

APPROVED AS TO FORM:

By Grant K. Weed, City Attorney

Date of Publication: ______Effective Date: ______

City Council Meeting January 16, 2018 202 ACTION ITEM 5d

ATTACHMENT B

Supervised Drug Injection Site Facilities Code Amendment Timeline

Activity Feb March April May June Research X X Draft code amendment X Draft ordinance X Commerce review 60-day review SEPA 14-day comment period Planning Commission Briefing Discussion PH2 City Council PH1 PH2

1. Public Hearing on interim regulations ordinance. Notice of public hearing issued at least 15 days before hearing date. 2. Public Hearing on permanent regulations. Notice of public hearing issued at least 15 days before each hearing date.

Permanent regulations ordinance must be adopted by July 16, 2018 or the interim ordinance must be extended.

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Date: January 16, 2018

To: City Council

From: Denise Meta Johns, Project Manager

Subject: Second Street Corridor Project

SUMMARY: The purpose of this agenda item is to authorize the execution of a Professional Services Agreement between the City of Snohomish and MacLeod Reckord PLLC to provide engineering and landscape architectural services for the Second Street Corridor Project.

Four professional consultant teams responded to the Second Street Corridor Project Request for Qualifications (RFQ) advertisement. The RFQ was advertised four times during the months of September and October 2017 in the Herald and Daily Journal of Commerce. The following firms submitted their qualifications:  Gray and Osbourne, Inc.  MacLeod Reckord, PLLC  OTAK  Reid Middleton

After reviewing the submittals, Gray and Osbourne Inc., MacLeod Reckord, PLLC, and OTAK were invited to interview on December 12, 2017. MacLeod Reckord PLLC was selected based on their experience, qualifications and understanding of the project. If this selection is approved by the City Council, work will commence February 2018 and is scheduled for completion by spring 2019.

BACKGROUND: In 2017, the City was awarded $323,000 from the Washington State Department of Transportation (WSDOT) Pedestrian and Bicycle Grant program for the planning and design of the Second Street Corridor from SR 9 to Lincoln Avenue for multi- modal use. The City has allocated $2,000 from Real Estate Excise Tax (REET) to fund the City’s share of this project. Pedestrian and bicycle safety is the goal of the grant program.

This project will look at alternative methods to improve safety for the non-motorized users of Second Street such as bulb-outs, warning beacons, lighting, signage and other methods which will likely increase safe use for pedestrians and bicyclists. This is also an opportunity to change the appearance and improve the local business usability of Second Street. The road segment is classified as a minor arterial, often choked with commuter pass-through traffic, and was at one time a segment of highway US 2. The goal will be to provide a long-term functional corridor that fits more with the character of the Snohomish historical area.

Accordingly, the City’s Comprehensive Plan encourages the built environment to provide a means for physical activity among its residents. The Comprehensive Plan encourages a combination of safe, convenient and comfortable facilities for walking and bicycling to encourage healthy lifestyles and alternatives to motorized travel including safe routes to schools. This project supports these goals of the Comprehensive Plan. By making pedestrian and bicycle facilities safer and constructing more miles of sidewalks and bike paths, it is anticipated that there will be an increase of non-motorized users and a reduction of some local vehicle emissions through the reduction of motorized users on the road.

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ANALYSIS: MacLeod Reckord PLLC will provide the professional expertise to plan and provide the 90% design for the Second Street Corridor Project. Deliverables will include a topographic survey of the study area, public outreach programs, conceptual plans and renderings, presentations to Council, and construction cost estimates.

Work will conform to future Federal Grant requirements for construction funding. Construction is not funded at this time. In 2019, City staff will begin evaluating State and Federal grant programs to determine which are appropriate for the project construction funding and segment phasing

BUGETARY IMPACTS: The overall cost budgeted for planning and design is $325,000. The City was successful in obtaining $323,000 in Washington State Department of Transportation Pedestrian and Bicycle grant for planning and design. The City has allocated $2,000 from Real Estate Excise Tax (REET) to fund the City’s share of this project. The professional service agreement is for an amount not to exceed $300,000. The remaining $25,000 will be used to reimburse in-house staff time, for WSDOT review reimbursement, and/or for additional professional services, as needed, and as the design progresses.

STRATEGIC PLAN REFERENCES:  Initiative #1: Establish a sustainable model for strengthening and expanding our parks, trails, and public spaces.  Initiative #2: Strengthen our foundations for connecting neighbors and enhancing our neighborhoods.  Initiative #3 Strengthen the community’s connections to our rivers.  Initiative #4 Increase multi-modal mobility within and connections to the community.  Initiative #5 Become more environmentally sustainable.  Initiative #6: Cultivate local businesses and promote the City as a great place to do business.  Initiative #7: Strengthen the City’s attractiveness as a regional destination.  Initiative #8: Invest in Snohomish’s civic facilities.

RECOMMENDATION: That the City Council AUTHORIZE the Mayor to sign and execute the Professional Services Agreement with MacLeod Reckord PLLC in an amount not to exceed $300,000 for the Second Street Corridor Planning and Design.

ATTACHMENT: MacLeod Reckord, PLLC Professional Services Agreement including scope of work and fee estimate.

REFERENCE DOCUMENTS:

A. City Comprehensive Plan http://www.snohomishwa.gov/184/Comprehensive-Plan B. City Transportation Master Plan http://www.snohomishwa.gov/documentcenter/view/2858

City Council Meeting January 16, 2018 206 ACTION ITEM 5e

PROFESSIONAL SERVICES AGREEMENT BETWEEN CITY OF SNOHOMISH AND MacLEOD RECKORD, PLLC FOR PROFESSIONAL CONSULTANT SERVICES

THIS AGREEMENT (“Agreement’) is made and entered into by and between the City of Snohomish, a Washington State municipal corporation (“City”), and MacLeod Reckord, PLLC, a Washington State corporation ("Consultant") licensed to do business in Washington State.

NOW, THEREFORE, in consideration of the terms, conditions, covenants and performances contained herein, the parties hereto agree as follows:

ARTICLE I. PURPOSE

The purpose of this agreement is to provide the City with professional consultant services as described in Article II. The general terms and conditions of relationships between the City and the Consultant are specified in this Agreement.

ARTICLE II. SCOPE OF SERVICES

The Scope of Services is attached hereto as Exhibit “A” and incorporated herein by this reference (“Scope of Services”). All services and materials necessary to accomplish the tasks outlined in the Scope of Services shall be provided by the Consultant unless noted otherwise in the Scope of Services or this Agreement. All such services shall be provided in accordance with the standards of the Consultant’s profession.

ARTICLE III. OBLIGATIONS OF THE CONSULTANT

III.1 MINOR CHANGES IN SCOPE. The Consultant shall accept minor changes, amendments, or revision in the detail of the Scope of Services as may be required by the City when such changes will not have any impact on the service costs or proposed delivery schedule. Extra work, if any, involving substantial changes and/or changes in cost or schedules will be addressed as follows:

Extra Work. The City may desire to have the Consultant perform work or render services in connection with each project in addition to or other than work provided for by the expressed intent of the Scope of Services in the scope of services. Such work will be considered as extra work and will be specified in a written supplement to the scope of services, to be signed by both parties, which will set forth the nature and the scope thereof. All proposals for extra work or services shall be prepared by the Consultant at no cost to the City. Work under a supplemental agreement shall not proceed until executed in writing by the parties.

III.2 WORK PRODUCT AND DOCUMENTS. The work product and all documents produced under this Agreement shall be furnished by the Consultant to the City, and upon completion of the work shall become the property of the City, except that the Consultant may retain one copy of the work product and documents for its records. The Consultant will be responsible for the accuracy of the work, even though the work has been accepted by the City.

In the event that the Consultant shall default on this Agreement or in the event that this Agreement shall be terminated prior to its completion as herein provided, all work product of the

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Consultant, along with a summary of work as of the date of default or termination, shall become the property of the City. Upon request, the Consultant shall tender the work product and summary to the City. Tender of said work product shall be a prerequisite to final payment under this Agreement. The summary of work done shall be prepared at no additional cost to the City.

Consultant will not be held liable for reuse of documents produced under this Agreement or modifications thereof for any purpose other than those authorized under this Agreement without the written authorization of Consultant.

III.3 TERM. The Consultant shall be authorized to begin work under the terms of this agreement upon signing of both the scope of services and this agreement and shall complete the work no later than December 31, 2019, unless a mutual written agreement is signed to change the schedule. An extension of the time for completion may be given by the City due to conditions not expected or anticipated at the time of execution of this agreement.

III.4 NONASSIGNABLE. The services to be provided by the Consultant shall not be assigned or subcontracted without the express written consent of the City.

III.5 EMPLOYMENT.

a. The term “employee” or “employees” as used herein shall mean any officers, agents, or employee of the of the Consultant.

b. Any and all employees of the Consultant, while engaged in the performance of any work or services required by the Consultant under this Agreement, shall be considered employees of the Consultant only and not of the City, and any and all claims that may or might arise under the Workman's Compensation Act on behalf of any said employees while so engaged, and any and all claims made by any third party as a consequence of any negligent act or omission on the part of the Consultant or its employees while so engaged in any of the work or services provided herein shall be the sole obligation of the Consultant.

c. Consultant represents, unless otherwise indicated below, that all employees of Consultant that will provide any of the work under this Agreement have not ever been retired from a Washington State retirement system, including but not limited to Teacher (TRS), School District (SERS), Public Employee (PERS), Public Safety (PSERS), law enforcement and fire fighters (LEOFF), Washington State Patrol (WSPRS), Judicial Retirement System (JRS), or otherwise. (Please indicate No or Yes below) ______No employees supplying work have ever been retired from a Washington state retirement system.

______Yes employees supplying work have been retired from a Washington state retirement system.

In the event the Consultant indicates “no”, but an employee in fact was a retiree of a Washington State retirement system, and because of the misrepresentation the City is required to defend a claim by the Washington State retirement system, or to make contributions for or on account of the employee, or reimbursement to the Washington State retirement system for benefits paid, Consultant hereby agrees to save, indemnify, defend and hold City harmless from and against all expenses and costs, including reasonable attorney’s fees incurred in defending the claim of the Washington State City Council Meeting January 16, 2018 208 ACTION ITEM 5e

retirement system and from all contributions paid or required to be paid, and for all reimbursement required to the Washington State retirement system. In the event Consultant affirms that an employee providing work has ever retired from a Washington State retirement system, said employee shall be identified by Consultant, and such retirees shall provide City with all information required by City to report the employment with Consultant to the Department of Retirement Services of the State of Washington.

III.6 INDEMNITY.

a. Indemnification / Hold Harmless. Consultant shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the Consultant in performance of this Agreement, except for injuries and damages caused by the sole negligence of the City.

b. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City, its officers, officials, employees, and volunteers, the Consultant's liability, including the duty and cost to defend, hereunder shall be only to the extent of the Consultant's negligence.

c. It is further specifically and expressly understood that the indemnification provided herein constitutes the Consultant’s waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties.

d. Public Records Requests. In addition to Paragraph IV.3 b, when the City provides the Consultant with notice of a public records request per Paragraph IV. 3 b, Consultant agrees to save, hold harmless, indemnify and defend the City its officers, agents, employees and elected officials from and against all claims, lawsuits, fees, penalties and costs resulting from the consultants violation of the Public Records Act RCW 42.56, or consultant’s failure to produce public records as required under the Public Records Act.

e. The provisions of this section III.6 shall survive the expiration or termination of this agreement.

III.7 INSURANCE.

a. Insurance Term The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.

b. No Limitation Consultant’s maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Consultant to the coverage provided by such insurance, or otherwise limit the City’s recourse to any remedy available at law or in equity.

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c. Minimum Scope of Insurance - Consultant shall obtain insurance of the types described below:

(1). Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage.

(2). Commercial General Liability insurance shall be written at least as broad on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop-gap, independent contractors and personal injury and advertising injury. The City shall be named as an additional insured under the Consultant’s Commercial General Liability insurance policy with respect to the work performed for the City using an additional insured endorsement at least as broad as ISO CG 20 26.

(3). Workers’ Compensation coverage as required by the Industrial Insurance laws of the State of Washington.

(4). Professional Liability insurance appropriate to the Consultant’s profession.

d. The minimum insurance limits shall be as follows: Consultant shall maintain the following insurance limits:

(1). Comprehensive General Liability. $1,000,000 combined single limit per occurrence for bodily injury personal injury and property damage; $2,000,000 general aggregate.

(2). Automobile Liability. $1,000,000 combined single limit per accident for bodily injury and property damage.

(3). Workers' Compensation. Workers' compensation limits as required by the Workers' Compensation Act of Washington.

(4). Professional Liability/Consultant's Errors and Omissions Liability. $1,000,000 per claim and $1,000,000 as an annual aggregate.

e. Notice of Cancellation. In the event that the Consultant receives notice (written, electronic or otherwise) that any of the above required insurance coverage is being cancelled and/or terminated, the Consultant shall immediately (within forty-eight (48) hours) provide written notification of such cancellation/termination to the City.

f. Acceptability of Insurers. Insurance to be provided by Consultant shall be with insurers with a current A.M.Best rating of no less than A:VII, or if not rated by Best, with minimum surpluses the equivalent of Best VII rating.

g. Verification of Coverage. In signing this agreement, the Consultant is acknowledging and representing that required insurance is active and current. Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured City Council Meeting January 16, 2018 210 ACTION ITEM 5e

endorsement, evidencing the insurance requirements of the Consultant before commencement of the work. Further, throughout the term of this Agreement, the Consultant shall provide the City with proof of insurance upon request by the City.

h. Insurance shall be Primary - Other Insurance Provision. The Consultant’s insurance coverage shall be primary insurance as respect the City. The Consultant’s Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance as respect the City. Any Insurance, self-insurance, or self-insured pool coverage maintained by the City shall be excess of the Consultant’s insurance and shall not contribute with it.

i. Claims-made Basis. Unless approved by the City all insurance policies shall be written on an “Occurrence” policy as opposed to a “Claims-made” policy. The City may require an extended reporting endorsement on any approved “Claims-made” policy.

j. Failure to Maintain Insurance. Failure on the part of the Consultant to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days’ notice to the Consultant to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Consultant from the City.

k. Public Entity Full Availability of Consultant Limits If the Consultant maintains higher insurance limits than the minimums shown above, the Public Entity shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Consultant, irrespective of whether such limits maintained by the Consultant are greater than those required by this contract or whether any certificate of insurance furnished to the Public Entity evidences limits of liability lower than those maintained by the Consultant.

III.8 DISCRIMINATION PROHIBITED AND COMPLIANCE WITH EQUAL OPPORTUNITY LEGISLATION. The Consultant agrees to comply with equal opportunity employment and not to discriminate against client, employee, or applicant for employment or for services because of race, creed, color, religion, national origin, marital status, sex, sexual orientation, age or handicap except for a bona fide occupational qualification with regard, but not limited to, the following: employment upgrading; demotion or transfer; recruitment or any recruitment advertising; layoff or terminations; rates of pay or other forms of compensation; selection for training, rendition of services. The Consultant further agrees to maintain (as appropriate) notices, posted in conspicuous places, setting forth the provisions of this nondiscrimination clause. The Consultant understands and agrees that if it violates this nondiscrimination provision, this Agreement may be terminated by the City, and further that the Consultant will be barred from performing any services for the City now or in the future, unless a showing is made satisfactory to the City that discriminatory practices have been terminated and that recurrence of such action is unlikely.

III.9 UNFAIR EMPLOYMENT PRACTICES. During the performance of this Agreement, the Consultant agrees to comply with RCW 49.60.180, prohibiting unfair employment practices.

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III.10 LEGAL RELATIONS. The Consultant shall comply with all federal, state and local laws and ordinances applicable to work to be done under this Agreement. The Consultant represents that the firm and all employees assigned to work on any City project are in full compliance with the statutes of the State of Washington governing activities to be performed and that all personnel to be assigned to the work required under this Agreement are fully qualified and properly licensed to perform the work to which they will be assigned. This Agreement shall be interpreted and construed in accordance with the laws of Washington. Venue for any litigation commenced relating to this Agreement shall be in Snohomish County Superior Court.

III.11 INDEPENDENT CONTRACTOR.

a. The Consultant and the City understand and expressly agree that the Consultant is an independent contractor in the performance of each and every part of this Agreement. The Consultant expressly represents, warrants and agrees that his status as an independent contractor in the performance of the work and services required under this Agreement is consistent with and meets the six-part independent contractor test set forth in RCW 51.08.195 or as hereafter amended. The Consultant, as an independent contractor, assumes the entire responsibility for carrying out and accomplishing the services required under this Agreement. The Consultant shall make no claim of City employment nor shall claim any related employment benefits, social security, and/or retirement benefits.

b. The Consultant shall be solely responsible for paying all taxes, deductions, and assessments, including but not limited to federal income tax, FICA, social security tax, assessments for unemployment and industrial injury, and other deductions from income which may be required by law or assessed against either party as a result of this Agreement. In the event the City is assessed a tax or assessment as a result of this Agreement, the Consultant shall pay the same before it becomes due.

c. The City may, during the term of this Agreement, engage other independent contractors to perform the same or similar work that the Consultant performs hereunder.

d. Prior to commencement of work, the Consultant shall obtain a business license from the City.

III.12 CONFLICTS OF INTEREST. The Consultant agrees to and shall notify the City of any potential conflicts of interest in Consultant’s client base and shall obtain written permission from the City prior to providing services to third parties where a conflict or potential conflict of interest is apparent. If the City determines in its sole discretion that a conflict is irreconcilable, the City reserves the right to terminate this Agreement.

III.13 CITY CONFIDENCES. The Consultant agrees to and will keep in strict confidence, and will not disclose, communicate or advertise to third parties without specific prior written consent from the City in each instance, the confidences of the City or any information regarding the City or services provided to the City.

City Council Meeting January 16, 2018 212 ACTION ITEM 5e

III.14 SUBCONTRACTORS/SUBCONSULTANTS.

a. The Consultant shall be responsible for all work performed by subcontractors/subconsultants pursuant to the terms of this Agreement.

b. The Consultant must verify that any subcontractors/subconsultants they directly hire meet the responsibility criteria for the project. Verification that a subcontractor/subconsultant has proper license and bonding, if required by statute, must be included in the verification process. The Consultant will use the Subcontractors/Subconsultants as set forth in Exhibit A.

c. The Consultant may not substitute or add subcontractors/subconsultants without the written approval of the City.

d. All Subcontractors/Subconsultants shall have the same insurance coverages and limits as set forth in this Agreement and the Consultant shall provide verification of said insurance coverage.

ARTICLE IV. OBLIGATIONS OF THE CITY

IV.1 PAYMENTS.

a. The Consultant shall be paid by the City for services rendered under this Agreement as described in the Scope of Services and as provided in this section. In no event shall the compensation paid to Consultant under this Agreement exceed Three Hundred Thousand Dollars ($300,000.00) without the written agreement of the Consultant and the City. Such payment shall be full compensation for work performed and services rendered and for all labor, materials, supplies, equipment and incidentals necessary to complete the work. In the event the City elects to expand the scope of services from that set forth in Exhibit A, the City shall pay Consultant a mutually agreed amount.

b. The Consultant shall submit a monthly invoice to the City for services performed in the previous calendar month in a format acceptable to the City. The Consultant shall maintain time and expense records and provide them to the City upon request.

c. The City will pay timely submitted and approved invoices received before the 20th of each month within thirty (30) days of receipt.

IV.2 CITY APPROVAL. Notwithstanding the Consultant's status as an independent contractor, results of the work performed pursuant to this Agreement must meet the approval of the City, which shall not be unreasonably withheld if work has been completed in compliance with the Scope of Services and City requirements.

IV.3 MAINTENANCE/INSPECTION OF RECORDS. a. The Consultant shall maintain all books, records, documents and other evidence pertaining to the costs and expenses allowable under this Agreement in accordance with generally accepted accounting practices. All such books and records required to be maintained by this Agreement shall be subject to inspection and audit by representatives of the City and/or the Washington State Auditor at all reasonable times, and the Consultant shall afford the proper facilities for such inspection and audit. City Council Meeting January 16, 2018 213 ACTION ITEM 5e

Representatives of the City and/or the Washington State Auditor may copy such books, accounts and records where necessary to conduct or document an audit. The Consultant shall preserve and make available all such books of account and records for a period of three (3) years after final payment under this Agreement. In the event that any audit or inspection identifies any discrepancy in such financial records, the Consultant shall provide the City with appropriate clarification and/or financial adjustments within thirty (30) calendar days of notification of the discrepancy.

b. Public Records The parties agree that this Agreement and records related to the performance of the Agreement are with limited exception, public records subject to disclosure under the Public Records Act RCW 42.56. Further, in the event of a Public Records Request to the City, the City may provide the Consultant with a copy of the Records Request and the Consultant shall provide copies of any City records in Consultant’s possession, necessary to fulfill that Public Records Request. If the Public Records Request is large the Consultant will provide the City with an estimate of reasonable time needed to fulfill the records request.

ARTICLE V. GENERAL

V.1 NOTICES. Notices to the City shall be sent to the following address:

City of Snohomish Attn: Denise Johns 116 Union Avenue Snohomish, WA 98290

Notices to the Consultant shall be sent to the following address:

MacLeod Reckord, PLLC Attn: Connie Reckord 110 Prefontaine Place South, Suite 600 Seattle, WA 98104

Receipt of any notice shall be deemed effective three (3) days after deposit of written notice in the U.S. mail with proper postage and address.

V.2 TERMINATION. The right is reserved by the City to terminate this Agreement in whole or in part at any time upon ten (10) calendar days' written notice to the Consultant.

If this Agreement is terminated in its entirety by the City for its convenience, the City shall pay the Consultant for satisfactory services performed through the date of termination in accordance with payment provisions of Section IV.1.

V.3 DISPUTES. The parties agree that, following reasonable attempts at negotiation and compromise, any unresolved dispute arising under this Agreement may be resolved by a mutually agreed-upon alternative dispute resolution of arbitration or mediation.

V.4 EXTENT OF AGREEMENT/MODIFICATION. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the parties and supersedes all prior negotiations, representations, or agreements, either written or oral. This Agreement may be amended, modified or added to only by written instrument properly signed by both parties. City Council Meeting January 16, 2018 214 ACTION ITEM 5e

V.5 SEVERABILITY a. If a court of competent jurisdiction holds any part, term or provision of this Agreement to be illegal or invalid, in whole or in part, the validity of the remaining provisions shall not be affected, and the parties’ rights and obligations shall be construed and enforced as if the Agreement did not contain the particular provision held to be invalid. b. If any provision of this Agreement is in direct conflict with any statutory provision of the State of Washington, that provision which may conflict shall be deemed inoperative and null and void insofar as it may conflict, and shall be deemed modified to conform to such statutory provision.

V.6 NONWAIVER. A waiver by either party hereto of a breach by the other party hereto of any covenant or condition of this Agreement shall not impair the right of the party not in default to avail itself of any subsequent breach thereof. Leniency, delay or failure of either party to insist upon strict performance of any agreement, covenant or condition of this Agreement, or to exercise any right herein given in any one or more instances, shall not be construed as a waiver or relinquishment of any such agreement, covenant, condition or right.

V.7 FAIR MEANING. The terms of this Agreement shall be given their fair meaning and shall not be construed in favor of or against either party hereto because of authorship. This Agreement shall be deemed to have been drafted by both of the parties.

V.8 GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington.

V.9 VENUE. The venue for any action to enforce or interpret this Agreement shall lie in the Superior Court of Washington for Snohomish County, Washington.

V.10 COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same Agreement.

V.11 AUTHORITY TO BIND PARTIES AND ENTER INTO AGREEMENT. The undersigned represent that they have full authority to enter into this Agreement and to bind the parties for and on behalf of the legal entities set forth below.

DATED this ______day of ______, 20______.

CITY OF SNOHOMISH MacLEOD RECKORD, PLLC

By: ______By: ______John J. Kartak, Mayor Connie Reckord, Principal

ATTEST APPROVED AS TO FORM

By: ______By: ______Pat Adams, City Clerk Grant K. Weed, City Attorney

City Council Meeting January 16, 2018 215 MacLeod Reckord PLLC Landscape Architecture  Planning  Urban Design 110 Prefontaine Place South Suite 600 Seattle, Washington 98104 P 206-323-7919 F 206-323-9242

Scope of Work December 28, 2017

City of Snohomish Second Street Corridor Project

PROJECT DESCRIPTION

During the term of this AGREEMENT, the CONSULTANT (MacLeod Reckord) and identified SUBCONSULTANTS shall perform professional services as outlined herein.

Purpose and Scope The purpose of the project is to redesign the Second Street corridor from SR 9 to Lincoln Avenue, incorporating multi-modal, pedestrian and bicycle-friendly facilities, safety, and landscape improvements. The scope includes survey and mapping, conceptual planning and design, final design of selected components to 90% construction documents, public outreach meetings, environmental assessment, NEPA and permitting, pedestrian and bicycle facility improvements, planting, low-impact development facilities, and other street improvements.

The scope of work shall include the furnishing of all services, labor, materials, equipment, supplies, and incidentals necessary to conduct and complete the work as indicated herein. The Work Plan identifies the specific tasks and deliverables that are the responsibility of the consultant.

Project Area The Project Area is defined as the full width of the existing public right-of-way of Second Street from State Route 9 on the west end to Lincoln Avenue on the east end (does not include improvements on the eastern leg of the intersection at Lincoln Avenue). Study areas for selected tasks extend beyond those limits in certain areas as reflected on Exhibit 1, attached to this Scope of Work.

ROLES AND RESPONSIBILITIES

City of Snohomish – Provide background information and data as available; review and comment on documentation presented; distribute draft and final documentation as necessary for comprehensive Advisory Committee and City review and approval; provide venue for public meetings.

Consultant – MacLeod Reckord will contract with qualified subconsultants as identified below. See Team Roster for contact information. Roles and responsibilities are as follows: MacLeod Reckord (MR) – Project management, agency coordination, public outreach, non-motorized transportation planning and design, landscape architecture, urban design,

City Council Meeting January 16, 2018 216 final document production, overall documentation coordination, specifications, cost estimating, project oversight, and QA/QC. SCJ Engineering (SCJ) – Civil engineering, transportation planning and traffic engineering and design, utility and storm water design, parking analysis, document production, specifications, cost estimating, public outreach support. Environmental Science Associates (ESA) – Environmental science and permitting, SEPA/NEPA documentation, cultural resource survey. Stantec – Lighting design and electrical engineering. HWA GeoSciences (HWA) – Geotechnical investigation, analysis, and recommendations. Harmsen and Associates, Inc. (Harmsen) – Survey and mapping.

GENERAL PROJECT ASSUMPTIONS

1. The City is responsible for advertising/notification and providing the venue for review meetings and public meetings/open houses. 2. Meetings and deliverables have been included in the Scope as outlined herein. 3. This project assumes federal funding will likely be used for final design and/or construction. 4. All available topographic and boundary survey, including legal descriptions, for the corridor shall be provided by the City. 5. All available geotechnical information for the corridor and adjacent properties shall be provided by the City. 6. All available as-built or PS&E documents for Second Street shall be provided by the City. 7. All available stormwater and utility information for the corridor and adjacent properties or projects shall be provided by the City. 8. All available traffic and speed counts for the corridor, including turning movement counts, shall be provided by the City. 9. Hazardous material survey(s) are not included in this scope of work. 10. Review comments from various City Departments will be consolidated by the City into a single review document set for each phase of design. Design team will provide a consolidated response to each set of comments. 11. Construction level permits by the team are not included in this scope. 12. Project assumes no right-of-way acquisition. 13. Stormwater design will follow the 2012 with 2014 Amendment Department of Ecology Stormwater Management Manual for Western Washington 14. City to maintain website and post materials provided by Consultant.

DOCUMENTS AND DATA PROVIDED BY CITY

 Applications, or similar scoping documents, for the grant supporting this project.  Survey and/or LiDAR information for the corridor as available  Access to City GIS mapping (layers as agreed)  City Road/Street Frontage and Construction Design Standards (includes site furnishings, signage, lighting standards, etc.)  Recent traffic and bicycle counts, if available  Motorized and non-motorized crash data (3 to 5 years)  Major utility development/redevelopment plans  City utility plans  Geotechnical and stormwater information as available

City Council Meeting January2 16, 2018 217

SCHEDULE

This scope of work is premised on a Notice-to-Proceed in the month of January 2018. Project completion April 2019, or as revised through an updated, approved schedule. See Exhibit 2 Draft Schedule attached to this document.

WORK PLAN

TASK 1: PROJECT MANAGEMENT 1.1 Administration. Project team management and coordination, including contracting, refinement of Work Plan, project sequencing, review/approval process, regular (twice monthly) progress and coordination conference calls or on-site meetings, and anticipated deliverables. 1.2 Team Coordination. Internal project team organization, including subcontracting, meeting organization, facilitation, and documentation. 1.3 Documents. Document management for mapping efforts, written documents, and analysis data. 1.4 Schedule. Project schedule draft and final version, including one round of updates. 1.5 Invoicing. Provide monthly progress reporting and invoicing. Deliverables: Contract and subcontracts; Schedule with target dates for public meetings, meeting notes or email confirmation, and deliverables; Schedule update; Progress reports and invoicing. Meetings: 1 meeting (MR) to include resolution of work plan, schedule, and contracting; twice monthly (MR). Other meetings (public, team coordination) included in tasks below.

TASK 2: DEVELOP AND IMPLEMENT PUBLIC OUTREACH PLAN 2.1 Public Outreach. Develop and implement a public outreach plan that defines exhibits, schedule and sequence for public input. Format anticipated is a combination of on-line web tools for presentation and comment/response, and in-person presentations/workshops for the general public. Exhibits will be made available to the City for posting on website and/or hardcopy printing/distribution. Public outreach plan anticipates the following sequence of outreach events: a. Public Outreach Strategy Meeting with City to resolve content and schedule. b. Initial launch (by City) of online project information (produced by MR) on City website to alert public, build interest and to gather input from the public on project goals, schedule, and outcomes. Also will inform of upcoming Public Meeting #1. c. Review Meeting #1 to review (selected) products developed under Tasks 3 through 9; review site analysis, review concept alternatives, and discuss content for Public Meeting #1. d. Public Meeting #1 to present information gathered to date and review concept alternatives. Provide City with content to post information on website after the public meeting.

City Council Meeting January3 16, 2018 218 e. Review Meeting #2 to review products developed under Task 9 Preferred Plan, review input from public via on-line and public meeting; review preferred plan and discuss content for Public Meeting #2. f. Provide City with content/information that will inform public about project status and information to be presented in Public Meeting #2. g. Public Meeting #2 to present preferred plan. Provide City with content to post information on website after the public meeting. 2.2 Provide documentation of input from public meetings. Deliverables: Materials provided to City for online posting are project and meeting notification flyers. Presentation materials as defined in task items that follow; Draft and final agenda; Meeting notes generated as informational, rather than a formal response to comments. Meetings: 1 Public Outreach Strategy meeting (MR); 2 Staff Review meetings (MR); 2 Public meetings (MR).

TASK 3: CORRIDOR INVENTORY AND ANALYSIS 3.1 Document Review. Research and review documents and data to identify potential deficiencies/opportunities with regard to non-motorized circulation, public use, and business interface within the Second Street corridor. Meet with City staff to complete data gathering effort. 3.2 Site Reconnaissance. Perform field visits to review conditions and determine operational/physical constraints and opportunities. Supplement mapped survey with observational information. 3.3 Site Analysis. Provide in graphic form site analysis of the corridor for use in staff and public meetings. Summarize key points of analysis and recommendations in a technical memorandum. Deliverables: One draft and one final Site Analysis graphic and technical memorandum. Meetings: 1 meeting with staff (MR, SCJ) to review conditions, documentation, and draft technical memoranda.

TASK 4: SURVEY AND MAPPING 4.1 Data Research and Assembly. Assemble documentation as provided by City and/or available to the general public to inform survey and mapping effort. 4.2 N/A. 4.3 Field Survey. Perform site reconnaissance and perform field survey within the project area as shown on Exhibit 1 and per Survey Request Form (Exhibit 2). Utilize datum as required by the City. Collect necessary field ties in order to properly determine boundary and right of way associated with the project. Identify and permanently locate and survey recoverable benchmarks at intervals along the corridor. Obtain the services of a private utility locator to mark and identify underground utilities within the corridor. 4.4 Survey Mapping. Map results of field survey, providing a comprehensive topographic, planimetric, and boundary survey. Include mapping of any critical area markers provided in

City Council Meeting January4 16, 2018 219

GPS by the team. Provide legend, notes, and survey stamp and signature on approved title block.

Assumptions:  Survey team will be provided with unrestricted access to the project site. There are private residences and businesses within the project area. All right of entry will be negotiated and obtained by the City and provided to the Consultant prior to start of work.  Scope assumes surveyor will assemble previous work done for the City, including the following mapping for reference only by: o Harmsen in 2013 between Avenue D and Maple Avenue o Harmsen in 2011 between Maple Avenue and Lincoln Avenue.  Boundary survey will be based on best available record information. Proposed fee does not include the cost for title company research or title report analysis.  City owns most property on the south side of Second Street between SR 9 and Avenue G, with the exception of APN 28051300109400. City to provide quit claim deed dated July 25, 1941 in order to resolve ownership/boundaries. Note this area includes old Milwaukee Railroad right-of-way, which may be problematic in defining.  Scope does not include a record of survey: no property corners will be set and no record of survey will be recorded.  Below ground utility depths, material, and sizes, except for sewer and storm structure inverts are not part of the scope.  City will make available all utility and record drawings associated within the project area. Deliverables: Draft and Final Base Survey.

TASK 5: GEOTECHNICAL INVESTIGATION AND REPORTING 5.1 Document Review. Research and review documents and data to as readily available regarding historical geotechnical information. Research is intended to inform on issues related to infiltration capacity, and assess stability of slope for providing support for improvements on west end of project. 5.2 Pavement Explorations are not included in the scope of work. 5.3 Infiltration and Slope Explorations. Perform field visit to explore subgrade conditions in up to eight (8) locations using hand augers that extend to depths of at least 5 feet below the existing ground surface to observe near surface soil conditions for assessment of potential for use of infiltration along the alignment and explore conditions in steep slope area west of Avenue D. Perform site visit for slope reconnaissance and utility locates prior to explorations. 5.4 Analysis. Complete analysis to support the work of the team in evaluating infiltration potential and assessment of stability of slope on west end of the project. 5.5 Report. Provide draft and final geotechnical report summarizing results of investigations and conceptual level geotechnical recommendations for evaluation of feasibility and design infiltration rates in accordance with the 2014 DOE Stormwater Manual using grain size analysis, and slope assessment. Submit draft, and incorporate comments into final report.

City Council Meeting January5 16, 2018 220 5.6 Project Management for Geotechnical Task. Provide coordinate for geotechnical task, project setup, and invoicing.

Assumptions:  No Street Use Permits will be required for this work.  Design of infiltration facilities is per 2014 DOE Stormwater Manual and will utilize grain-size method for estimating the design infiltration rate.  The type of infiltration facility will not require observation of ground water table or impermeable layer below a depth of five feet. Deliverables: One draft and one final Geotechnical Report.

TASK 6: TRAFFIC AND PARKING ANALYSES AND RECOMMENDATIONS 6.1 Document Review. Obtain all available traffic volumes and turning movement counts from the City and traffic model from the County. In addition, obtain up to ten (10) additional turning movement counts to supplement the City’s data. Review data to identify existing traffic flow and volumes within, and immediately affecting, corridor. Research and review documentation related to on-street parking only within the Study Area of Influence shown on attached Exhibit 1. Meet with City staff to complete data gathering effort. 6.2 Site Reconnaissance. Perform field visits to review field conditions including available parking within the Study Area of Influence. 6.3 Parking Utilization Study. Perform two (2) field visits (at a weekday mid-day, weekday evening and/or weekend mid-day) to record parking utilization within the Study Area of Influence shown on attached Exhibit 1. Each visit will include driving and video recording the area within a 20-minute timeframe then performing an office review of the videos to record parking utilization (recorded as % parking utilized per direction of travel per block). Provide parking utilization summary with recommendations as related to revisions/reductions of parking on Second Street. 6.4 Supplement mapped survey with observational information from 6.2 and 6.3 (informal work product for team). 6.5 Queuing Analysis: Perform an analysis of the existing conditions and design year (2035) in Synchro to determine queue lengths for the pm peak period at the following intersections to determine the minimum pocket lengths to be maintained on Second Street at each intersection: a. Avenue D (EB and WB, signalized) b. Avenue C (EB and WB, uncontrolled) c. Avenue B (EB and WB, uncontrolled) d. Avenue A (EB and WB, signalized) e. Union Avenue (EB and WB, uncontrolled) f. Glen Avenue/Rainer Street (EB and WB, uncontrolled) g. Cedar Avenue (EB and WB, uncontrolled) h. Maple Avenue (EB and WB, signalized) i. Lincoln Avenue (EB only, signalized) 6.6 Intersection Operational Analysis. Perform and analysis of the intersections along Second Street based on the existing and design year (2035) Synchro model. Update PSRC models

City Council Meeting January6 16, 2018 221

with existing turning movement counts and signal timing information. Provide current and future MMLOS values for intersections within the project limits based on potential: a. Travel lane width reduction (by manually reducing flow rate and/or lane capacity) b. Reduced curb radii at intersections (not modeled) c. Elimination of selected Y-street intersections d. Non-motorized crossing improvement locations and signalization requirements (assumes these would be RRFB or Hawk controlled, not signalized intersections and would not be modeled). Assumptions:  Design year is 2035 to match the PSRC model.  PSRC Synchro model is sufficient for this work when updated with turning movement counts (existing) and signal timing information.  Only the pm peak will be modeled for queuing and LOS analysis. Deliverables: One draft and one final each for Parking Utilization Study, Queuing Analysis, and Intersection Operational Analysis technical memoranda. Meetings: 1 meeting with staff (MR, SCJ) to review conditions, documentation, and draft technical memoranda. This meeting will coincide with Task 3 meeting.

TASK 7: STORM DRAINAGE AND UTILITY ANALYSIS AND RECOMMENDATIONS 7.1 Document Review. Research and review documents and data to identify existing storm drainage and utility infrastructure within the corridor. Identify drainage basins and required storm drainage mitigation for proposed improvements. Provide preliminary calculations to satisfy level of effort for NEPA. Meet with City staff to complete data gathering effort. 7.2 Site Reconnaissance. Perform field visits to walk the site and review existing basin boundaries and runoff patterns. Supplement mapped survey with observational information (informal work product for team). 7.3 Analysis and Report Preparation: Prepare a hydrologic model of the existing and proposed land use conditions for the limits of disturbance to determine the treatment and flow control requirements. Determine preliminary footprint size of water quality and flow control facilities. Evaluate detention options and infiltration options for the basin area(s). Evaluate water quality options for basin area(s). Prepare plan and profile sheets to a preliminary design level (approximately 50%) for the stormwater improvements. Show the plan view footprint of water quality and flow control facilities. Prepare a draft technical memorandum that will describe stormwater design, document major design decisions, and serve as a preliminary drainage report. Tasks 11.6 and 12.1 will advance the drainage design to the 60% and 90% design levels respectively. Assumptions:  Utilities to be surveyed and included in the survey and mapping provided in Task 4. Deliverables: One draft and one final Storm Drainage and Utility Systems technical memorandum. Meetings: 1 meeting with staff (MR, SCJ) to review conditions, documentation, and draft technical memo. This meeting will coincide with Task 3 meeting.

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TASK 8: STREET LIGHTING AND POWER SYSTEM INFRASTRUCTURE ANALYSIS AND RECOMMENDATIONS 8.1 Document Review. Research and review documents and data to identify existing street lighting and power vaults/cabinets within the corridor. 8.2 Site Reconnaissance. Perform field visits to review conditions. Supplement mapped survey with observational information (informal work product for team). 8.3 Site Analysis. Provide observations and recommendations regarding street lighting adjustments and/or upgrades. Identify and characterize condition/complexity of existing vaults and cabinets. Summarize key points of analysis recommendations in a technical memorandum. Deliverables: One draft and one final Street Lighting and Power System infrastructure technical memorandum. Meetings: None.

TASK 9: CONCEPTUAL ALTERNATIVES AND PREFERRED CONCEPT 9.1 Concept Alternative Development. Develop and illustrate two draft conceptual alternatives incorporating recommendations from team analysis effort. 9.2 Prepare a brief written summary of alternatives, including channelization and parking changes, infrastructure improvements, and any permit or environmental impact issues. 9.3 Planning Level Cost Estimates. Develop planning level cost estimates for two conceptual alternatives. Purpose is primarily for a level of magnitude cost comparison between alternatives. 9.4 Finalize Conceptual Alternatives. Finalize graphics, narrative, and cost estimates for presentation to Staff, Business Community Stakeholder group, and for Public Meeting #1. 9.5 Preferred Plan. Based on input from City, Staff, Business Community, and public, develop a preferred plan (assumed to be some combination of the alternatives). Provide draft for review with City, then final for presentation to Staff and for Public Meeting #2. 9.6 Final Preferred Plan Planning Level Cost Estimate. Develop planning level cost estimate for preferred plan. Deliverables: Draft and final Conceptual Alternatives as plans, cross section, and/or illustrative sketches; Summary technical memorandum describing differences between Conceptual Alternatives; Planning level cost estimates for Conceptual Alternatives; Draft and Final Preferred Plan as plan, cross section, and/or illustrative sketches; Final Preferred Plan planning level cost estimate. Meetings: None.

TASK 10: ENVIRONMENTAL AND PERMIT SUPPORT SERVICES

The Consultant will provide environmental services to support compliance with the National Environmental Policy Act (NEPA), which is required due to the use of federal funds for the Project. The anticipated environmental and land use permits, reviews, or other environmental approvals for the project are described below. The permits are based on an initial review of federal, state, and local regulations related to the type of construction proposed. This is not a complete list. This list City Council Meeting January8 16, 2018 223

does not include building permits and other permits or approvals that may be needed depending on the selected Preferred Alternative.

10.1 Endangered Species Act Coordination. Prepare a draft and final Biological Assessment (BA) for the project based on the Preferred Conceptual design. The BA will be prepared to support consultation efforts under Section 7 of the Endangered Species Act of 1973 among the federal lead agency and Services. Based on initial review of species distribution within the project area and determinations from similar projects, we assume the project can be designed and constructed in such a manner that the project will qualify for a No Effect determination. If project effects exceed the threshold for a no effect determination, additional scope and budget will be required for the preparation of a full BA. Based on site conditions of the corridor being built-out, and the limited area the project is expected to disturb, field survey is not warranted, therefore this task does not include field work or surveys for plants or animals. Site photographs from team reconnaissance will be reviewed to verify any areas in question. Deliverables: 1) Draft and Final Letter of No Effect Meetings: None.

10.2 Cultural Resource Survey. Prepare an area of potential effect (APE) for approval by WSDOT in consultation with the Washington State Department of Historic and Archaeological Preservation (DAHP) and tribes. Consultant will conduct a literature review to identify historic and archaeological resources (collectively known as “Historic Properties”) within the APE and evaluate those resources in accordance with the requirements of 36 CFR 800.4 for the design under consideration. An inventory will be taken of historic properties within the APE for resources of the built environment. The Consultant will record with photographs and documentation up to three (3) buildings or structures that predate 1970 on Historic Property Inventory Forms for submission in to the state’s electronic database. Traditional subsurface testing methods are impractical since the project area is highly urbanized. Therefore, potential for archaeological resources shall be determined using a review of relevant literature (including ethnographic and historic resources), an analysis of geotechnical, geological, and soils data, and a study of archaeological surveys previously conducted in the vicinity. Preparation of a Cultural Resources Assessment Report will summarize the findings of the literature review and the Historic Property inventory in accordance with Section 106 and consistent with Chapter 456 of the WSDOT Environmental Manual. Deliverables: 1) Draft and Final APE letter for submission by WSDOT to DAHP; 2) Draft and Final Cultural Resources Assessment Report Meetings: None.

10.3 Environmental Justice (EJ) Technical Memorandum. Prepare an EJ Technical Memorandum in compliance with Chapter 458 of WSDOT’s Environmental Manual. Demographic and community data will be collected specific to the potentially affected area for this project. The EJ Technical Memorandum will also summarize the communication plan and the completed and planned public outreach efforts.

10.4 N/A.

City Council Meeting January9 16, 2018 224 10.5 NEPA Documented Categorical Exclusion (DCE). Prepare documentation to comply with NEPA requirements. It is assumed that a WSDOT Environmental Classification Summary (ECS) will be the appropriate level of documentation for the project. The ECS shall be completed per the guidance and requirements in the WSDOT Local Programs Environmental Classification Summary Guidebook and WSDOT’s Environmental Manual at the time a notice to proceed is received by the project team. Complete the ECS using existing information from the technical reports completed for the project (described above), the project design plans, and other available information. City shall be responsible for submitting the ECS to WSDOT for review and approval. At this time, it is assumed that no additional field investigations or data acquisition is necessary to complete the ECS, although this assumption should be verified through a meeting of the Consultant, City, and WSDOT at earliest opportunity to determine the expected extent of any additional technical studies for NEPA compliance. In consultation with City and WSDOT staff, technical memoranda will be “right-sized” to address the potential impacts of this project and some reports may be combined, if appropriate.

The discipline reports or technical memorandum listed above, along with other documentation prepared for the project (e.g., Transportation Discipline Report), will be incorporated into the ECS. Deliverables: 1) Draft and Final ECS Meetings: One (1) with City/WSDOT.

10.6 SEPA Documentation. City will be the SEPA lead agency and will adopt the NEPA document to satisfy the SEPA requirement as allowed by WAC 197-11-610 and adopted by reference in SMC 14.90.010. Consultant will prepare a draft SEPA Notice of Determination and an Adoption of Existing Environmental Document form (WAC 197-11-630) for internal review. Following review of the draft, Consultant will incorporate team and City comments into the notices for finalization by the City and to be distributed to the public. Deliverables: Draft and Final SEPA notices Meetings: None.

Assumptions:  A DCE/ECS form is the appropriate level of documentation to comply with NEPA. If it is determined that additional documentation is required, this scope and budget may need to be amended.  This scope and budget assume only one round of review with the City for all environmental documentation. Consultant will incorporate one consolidated set of comments from the City into the final documents. City is responsible for submission of environmental documentation to WSDOT.  This scope and budget assume no revisions to environmental documentation will be required after WSDOT review.  No additional analysis beyond that required to satisfy NEPA will be required to comply with SEPA.  The City will be responsible for all publication and distribution requirements for notices.

All deliverables will be submitted electronically.

City Council Meeting January10 16, 2018 225

TASK 11. DESIGN DEVELOPMENT (60%) 11.1 Cover Sheet, Key Sheet and General Notes Sheet. Provide notes, abbreviations, legends, and similar front-end information for the plan set. 11.2 Alignment Plans are not included in this scope of work. 11.3 Typical Sections: Provide typical sections throughout the project limits. One (1) curb-to-curb typical section and a limited number of back of curb sections along the corridor will be provided. 11.4 Site Demolition Plans: Provide for demolition of all site improvements and structures that conflict with proposed improvements. Demolition Plans will be combined with TESC plans. 11.5 Temporary Erosion and Sedimentation Control Plans: Prepare TESC plans, details, and notes. TESC will be combined with Demolition Plans. 11.6 Plan and Profile Sheets: Prepare plan and profiles including roadway work, drainage, and utility work, notes, and legends. Drainage design will be based upon the analysis and recommendations prepared in Task 7.3 to meet the requirements of the DOE Manual. 11.7 Paving Plans are not included in this scope of work. 11.8 Back-of-Curb Layout Plans: Develop plans and provide notes for non-motorized facilities behind the curb including sidewalks, plazas, rest areas, curb ramps, connection to off-site facilities, site furnishings, and similar. 11.9 Back-of-Curb Grading Plans: Develop plans showing proposed grades for all improvements behind the curb, including center islands where they occur, within the public right-of-way. Provide notes. 11.10 Site Plan Details: Prepare construction details for all site improvements back-of-curb. 11.11 MEF Reporting is not included in this scope of work. 11.12 Utility Relocation Plans are not included in this scope. Existing utilities will be shown on the plan/profile and will include all utility adjustments to grade. 11.13 Electrical and Lighting Plans. Advance lighting plans, details, and notes. Elements include street lighting, pedestrian lighting as desired off the backside of street lighting poles, and relocated vaults/cabinets. Not included in scope is any design or coordination /application for demolition and relocation of Snohomish PUD vaults, poles, or undergrounding of their overhead lines. This includes exclusion of secondary service providers. 11.14 Storm Drainage Details. Advance details, notes, and calculations for storm drainage work. Coordinate with team on refining size and location of rain gardens or similar. Prepare documentation necessary to support permit application review and agency review. Drainage design will be based upon the analysis and recommendations prepared in Task 7.3 to meet the requirements of the DOE Manual. 11.15 Channelization and Signing Plans. Advance channelization and signing plans, details, and notes. Identify crosswalk locations 11.16 Sign Specification Sheets are not included in this scope of work. 11.17 Planting Plan. Advance planting plans, details, and schedule. 11.18 Irrigation Plans. Develop irrigation plans for new street tree and shrub beds. 11.19 Structural Plans are not included in this scope of work

City Council Meeting January11 16, 2018 226 11.20 Traffic Signal Plans are not included in this scope of work. 11.21 Traffic Control Plans are not included in this scope of work. 11.22 Cost Opinion. Provide design development level cost opinion. 11.23 Specification Outline. Provide specification outline in WSDOT/APWA 2018 format for Division 2 through Division 9. 11.24 Team Coordination Meetings. Coordination meetings with team to review plan development. 11.25 Review/approval. Attend meeting with City to review comments on 60% plans, reports, and cost opinion. Provide summary response to comments. Attendees: MR, SCJ. Assumptions:  Selected meetings may be via conference call.  Scope of work for the following items is difficult to determine at this time, without more advanced plan development. Scope is limited to the hours indicated in the fee proposal for: o Irrigation plans, due to unknown existing conditions and extent of work necessary for new improvements. Work assumes there is no existing irrigation in the corridor to address. o Electrical and lighting plans, due to unknown extent of proposed improvements (how extensive pedestrian/bollard lighting, how much wall, plaza, or building exterior lighting). Deliverables: 60% Plans; Specification Outline; Cost Opinion Meetings: (1) Meeting to receive review comments; other meetings as required and may be conference call format.

TASK 12. CONSTRUCTION DOCUMENTS (90%) 12.1 Prepare construction documents to 90% completion plans based on standard engineering practices, and input from City review of 60% plans, specifications, details, notes, calculations and reporting. Electrical and lighting plans, traffic signal plans, utility relocation plans, traffic control plans, and structural plans are not included in the 90% PS&E scope. 12.2 Update project construction schedule and final phasing plan, identify additive alternates. 12.3 Prepare 90% Specifications in run-list format (from subs to MR) and in Word doc format from MR to City; provide to the City supporting narrative or selected information for Division 0 and Division 1. 12.4 Prepare 90% Cost Opinion in Summary of Quantities format. 12.5 Team Coordination Meetings. Coordination meetings with team as necessary to review plan development. 12.6 Review/approval. No formal review/approval anticipated other than verification that the City’s 60% comments were addressed. Final review of, and adjustments to 90% documents assumed to be included in follow-up scope of work to develop 100% documents. Deliverables: 90% Plans; Specification Outline; Cost Opinion. Meetings: None scheduled/scoped.

City Council Meeting January12 16, 2018 227 City Council Meeting January 16, 2018 228 SECOND STREET CORRIDOR DRAFT SCHEDULE 2018 2019 TASK DJFMAAMJ J SODN JFMMSA JJA OND 1. PROJECT INITIATION/MANAGEMENT Refine Work Plan;Schedule;Invoicing/reporting;Bi-monthly conf calls 2. PUBLIC OUTREACH Review Meetings Public Open House Online information exchange 3. through 8. CORRIDOR INVENTORY & ANALYSIS Corridor Inventory and Analysis Survey and Mapping Geotechnical Investigation and Reporting Traffic and Parking Analysis and Recommendations Storm Drainage and Utility Analysis and Recommendations Street Lighting/Power Infrastructure Analysis and Recommendations 9. CONCEPTUAL ALTERNATIVES AND PREFERRED CONCEPT Conceptual Alternatives Preferred Concept City Council Meeting 10. ENVIRONMENTAL AND PERMIT SUPPORT SERVICES January 16,2018 Impact Analyses NEPA document preparation Agency review/approval 229 Permitting 11. DESIGN DEVELOPMENT (60%) 60% PS&E; WSDOT coord.; phasing plan; public presentation RIGHT-OF-WAY - NOT IN SCOPE R/W negotiation R/W certification Temporary Easements 12. CONSTRUCTION DOCUMENTS (90%) 90% PS&E; WSDOT formal review 9. BID DOCUMENTS - NOT IN SCOPE 100% PS&E; incorporate final permit & WSDOT conditions 10. BIDDING AND AWARD - NOT IN SCOPE Bid/Award support 11. CONSTRUCTION SUPPORT - NOT IN SCOPE Construction support

Task Duration

Staff Review

Public Open House Events

WSDOT Coordination/Review EXHIBIT 2 DRAFT SURVEY 12/19/2017 (as required if federally funded) MacLeod Reckord PLLC Landscape Architecture  Planning  Urban Design 110 Prefontaine Place South, Suite 600 Seattle, Washington 98104 P 206-323-7919 F 206-323-9242

EXHIBIT 3 SURVEY REQUEST FORM 2017

The following is a summary of our request for field survey and mapping information. Note the format and drafting standards identified below. We will assume all information can be provided unless otherwise stated prior to contract signing.

Format and Standards Delivery of computer compilation of the survey information shall be on CD/DVD, or downloadable from ftp, in AutoCAD Civil 3d .dwg version 2017 or compatible per project standard. Use color-dependent (.ctb) plot file table unless otherwise noted in project standards. Include plot style table and font/shape files on CD/ftp.

If the client standards require using “.stb” plot style format comply with those standards.

Note the following format requirements:  Drawing to be completed using an AutoCAD Civil 3d drawing template based on the National CAD Standard version 3.1. Do not use style “standard” or have Civil 3d objects on layer “0”.  Coordinate system to be NAVD88 (vertical datum).  All non Civil 3d blocks to be created in layer 0 and inserted on appropriate layer.  All non Civil 3d objects drawn with “color” set to “bylayer” including data point and block components.  All xrefs inserted at 0,0,0 full scale, no rotation, World UCS  Drawing units set to “decimal US foot”; min. precision, 0.00; insertion scale, feet; angle type, decimal or surveyor’s; angle precision, 00D00’00”.  Topographic surveys to include an existing ground surface object  Non surveyed topographic contours to be at 1 foot intervals drawn at true elevation  Drawing linetype scale set to 1.00  Civil 3D drawings with all data included

Datum and Control Points  All critical survey control points shall be located outside of the proposed limit of work to avoid need to reset control after grading operations  Datum as required by the agency contracting for design services, with conversion factors given for other datum as may be required by various permit review agencies

continued

City Council Meeting January 16, 2018 230 The survey information requested and plot format is summarized below. Use a separate layer for each of the requested items:

Topographic Information Data point elevation Data point description Data point shot number Spot elevations Benchmarks

Boundary Information Surveyed centerline Rights-of-way, ties to centerline

Planimetric Information Trees, with DBH information for “significant trees” as defined by Code (City of Snohomish Ordinance 1917 indicates Significant Trees are any deciduous and evergreen trees six (6) inches or greater in diameter, four (4) feet above the ground, excluding alders and cottonwoods). Shrubs/brush Roads/alleys/driveways Buildings, including above ground overhangs Structures, including pavement (pads), stairways, sidewalks, ramps, curbs, gutters Signs Barricades/fences (centerline of post) Lakes/streams/wetlands At current water level As delineated by others OHW, 100-year flood, flood hazard limits, as contract requires Drainage structures (CB’s, culverts, vaults, etc, with rim and invert elevation) Utilities (Water, Sewer, Electrical, Gas, Cable, Fiber Optic) Horizontal Alignment only Depth/Height as contract requires Irrigation (including location of heads, valve boxes, controllers, etc.)

Sheet Size Sheet size to match project standards or 22” x 34” if none noted.

City Council Meeting January 16, 2018 231 Second Street Corridor Project Fee Summary December 28, 2017

MacLeod SCJ ESA Stantec HWA Harmsen Subtotal Task/Team Reckord Prime & NMTP Civil & Traffic Env Science & Lighting & Survey & Geotechnical Planner Engineering Permitting Electrical Mapping 1.0 Project Management 13,201.63 5,293.56 3,558.74 22,053.93 2.0 Public Outreach Plan 9,058.29 9,058.29 3.0 Corridor Inventory and Analysis 9,269.42 1,630.33 1,853.57 12,753.32 4.0 Survey and Mapping 889.74 22,444.22 23,333.96 5.0 Geotechnical Investigation and Reporting 573.06 10,622.62 11,195.67 6.0 Traffic Movement and Parking Analyses and 738.94 12,268.72 13,007.66 Recommendations 7.0 Storm Drainage and Utility Analysis and 829.42 17,604.28 18,433.70 Recommendation 8.0 Street Lighting and Power System 407.17 2,690.85 3,098.02 Infrastructure Analysis and Recomm. City 9.0 Conceptual Alternatives and Preferred Concept 16,809.62 2,149.86 18,959.48 January 10.0 Environmental and Permit Support Services 1,859.92 800.75 23,748.06 386.16 26,794.89 Council 11.0 Design Development (60%) 36,564.94 32,817.99 2,964.78 72,347.71

232 12.0 Construction Documents (90%) 31,392.37 21,823.41 53,215.78 16,

Meeting Subtotal 121,594.52 92,239.04 27,306.80 10,045.21 10,622.62 22,444.22 284,252.42 2018 Direct Expenses 699.08 5,187.00 500.00 1,361.50 8,000 15,747.58

TOTAL 122,293.60 97,426.04 27,806.80 10,045.21 11,984.12 30,444.22 300,000.00

Page 1 of 1 DISCUSSION ITEM 6

Date: January 16, 2018

To: City Council

From: Keith Rogers, Chief of Police

Subject: Community Outreach Officer Position and Opportunity Assessment, and Police K-9 Bill of Sale

The purpose of this agenda item is to receive City Council feedback on a Community Outreach Officer position within the Police Department, and received approval to authorize a bill of sale for the current Patrol K-9.

BACKGROUND: The City receives law enforcement services through an Interlocal Agreement (ILA) with the Snohomish County Sheriff’s Office (SCSO). The first five-year agreement was effective from 2012 to 2016, and the current five-year agreement is in effect from 2017 to 2021.

The organizational makeup of the Police Department is as follows:

Chief of Police (1) Deputy Chief / Administrative Sergeant (1) Patrol Sergeants (4) Patrol Deputies (8) Detectives (2) School Resource Deputy (1) * Patrol K9 Deputy (1) & Patrol Canine

Total Commission Personnel = 18

* The City will be losing its Patrol K-9 Deputy on February 1, 2018.

ANALYSIS:

K-9 Program: With the loss of the K-9 Deputy, it is an appropriate time to review the performance of the program:

 The cost and lost training time to replace the K-9 Deputy is significant;

 The average annual use of the K-9 unit within the City was approximately five calls;

 The average annual use of the K-9 unit outside the City was about 25 calls. Therefore, the need for and use of the K-9 services was much greater (5:1 ratio) in the County verses the City;

 At best, the City had increased response time from the availability of an in-house K-9 unit about 15% of the time. There is only one K-9 Deputy on staff for about 23% of the time over the course of any typical 24 hour, 7 days per week period, without accounting for time away for training and annual leave. The other 85% of the time during a typical week, the effective response came from the County or other neighboring agencies;

City Council Meeting January 16, 2018 233 DISCUSSION ITEM 6

 The liability for K-9 services has increased significantly, industry wide, in the last several years. It is not uncommon, in recent years, for even the convicted criminal to receive compensation for the canine bites; and

 The Sheriff’s Office has diligently reviewed and upgraded its programs based on best management practices. Out of approximately 300 commissioned staff, the Sheriff’s Office maintains about three K-9 Deputies. Currently, the City of Snohomish maintains a much higher ratio of 18 commissioned staff to one K-9 unit.

Community Outreach Officer Opportunity: As part of the Police Chief’s review of the current organization, it was recognized that there were continued requests from the City Council, community groups and the public for a program within the City similar to the Sheriff’s “Office of Neighborhoods” program. The City of Monroe had begun a similar program, which was referenced at the recent January 2 Council meeting. Chief Rogers, in working with Mayor Kartak and Interim City Administrator Schuller, began to develop a Community Outreach Officer position profile, based on the feedback we were hearing from the community.

After further review, Chief Rogers recommended replacing the K-9 Deputy position with a new Community Outreach Officer position. Chief Rogers will provide additional details on the opportunities provided the City with a Community Outreach Officer and requests that the City Council provide feedback at tonight’s meeting.

This position could provide the following areas of service to the City:

1. Community Outreach: The Community Outreach Officer can lead the City’s outreach to the local homeless community, provide opioid crisis prevention support and direction, and provide additional resource connections for citizens dealing with substance abuse and addiction;

2. Community Engagement: The officer can provide additional coordination and assistance to local neighborhood block watch programs, be involved in neighborhood relationships, operate face-to-face bike patrols, and work with the Chief to carry out recommendations of the City’s Public Safety Commission;

3. Crime Prevention: Redeeming one citizen’s life out of addiction is a worthwhile task, but there can be additional proactive, rather than reactive, crime prevention benefits. Even a small drop in repeat offenses can reduce impacts to core City services, such as when the City’s Streets and Parks Division staff are called away to provide cleanup of homeless encampments and damaged public restrooms. This may also help to reduce the number of needles and excessive debris found in City parks and public spaces. A drop in repeat offenses may reduce the impact of loss and stress to City citizens who are otherwise victims of crime. Such further proactive approach to community police work could result in fewer Snohomish families having their cars vandalized, or their homes ransacked and valuables stolen.

4. Focused Problem-Oriented Policing: The Community Outreach Officer can focus on specific problems within the City that need dedicated attention, such as:

a. Traffic Speed Enforcement; b. Nuisance Property Action; c. Pedestrian Safety Implementation; d. Follow-up with City staff on permanent solutions, for example, through new signage or street improvements. City Council Meeting January 16, 2018 234 DISCUSSION ITEM 6

In the future, when a Patrol K-9 unit is needed within the City, the Police Department can still use the Sheriff and/or neighboring agency services, as is the case for most timeframes and situations today.

Current Patrol K-9 (dog): With the loss of the K-9 Deputy, the canine will be without a handler. In the best interest of the canine and the many hours of training invested, the City may need to release the dog to another neighboring agency. The Sheriff’s Office is not in need at this time for another canine. Chief Rogers has reached out to several agencies, and is following up on those leads.

Because a canine is considered an item of personal property, the Police Chief will need the City Council to authorize the Mayor to sign a Bill of Sale, and the Council will need to pass a Resolution in order to release the canine to another agency. The City Attorney’s office will prepare the proper indemnification clause for the receiving agency to sign. A Bill of Sale and Resolution would be brought back for Council approval at the next or future meeting.

STRATEGIC PLAN REFERENCE: Not applicable

RECOMMENDATION: That the City Council DISCUSS the Community Outreach Officer position and DIRECT the City Attorney on the preparation of the K-9 Bill of Sale.

ATTACHMENTS: None

City Council Meeting January 16, 2018 235

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City Council Meeting January 16, 2018 236 CONSENT ITEM 7a

Schedule of Checks for the Checks Issued Since the January 2, 2018 Meeting Name Check # Invoice # Check Date Description Amount Terrie Schmitt 62012 1/5/18 Refund check $182.91 Check Total $182.91 Skyles 62013 1/5/18 Refund check $2.99 62013 1/5/18 Refund check $56.01 Check Total $59.00 Thompson 62014 1/5/18 Refund check $157.10 Check Total $157.10 Batch Total $399.01 Automatic Funds Transfer Services, Inc 62015 98482 12/29/17 Storm Printing for Nov/Dec Billing $113.42 62015 98482 12/29/17 Sewer Printing for Nov/Dec Billing $113.43 62015 98482 12/29/17 Water Printing for Nov/Dec Billing $113.43 62015 98482 12/29/17 Storm Postage for Nov/Dec Billing $221.86 62015 98482 12/29/17 Sewer Postage for Nov/Dec Billing $221.86 62015 98482 12/29/17 Water Postage for Nov/Dec Billing $221.87 Check Total $1,005.87 Alpha Courier Service 62016 10200 12/29/17 courier $24.20 Check Total $24.20 ARC Architects, Inc 62017 12 12/29/17 Hal Moe Building Project $2,136.15 Check Total $2,136.15 Washington Tractor 62018 1447674 12/29/17 backpack blower $526.30 Check Total $526.30 Chemsearch 62019 2969684 12/29/17 Drain Cobra Program $141.84 Check Total $141.84 Code Publishing Inc 62020 58560 12/29/17 municipal code website update $2,021.62 Check Total $2,021.62 City of Everett 62021 I17003144 12/29/17 Everett Animal Shelter Nov 2017 $185.00 Check Total $185.00 City Of Everett Utilities 62022 01015701082018 12/29/17 6600 109th Ave SE $31,979.75 62022 01741001082018 12/29/17 6203 107th Ave SE $1,107.47 62022 01016401082018 12/29/17 6400 118th Dr SE $455.70 62022 01954601082018 12/29/17 3300 Blk Bickford Ave $3,211.66 62022 01673901082018 12/29/17 99th St SE/5 Line $1,232.64 Check Total $37,987.22 Comcast 62023 47405-12/17 12/29/17 Police Dept Internet $59.80 Check Total $59.80 Davenport Group, Inc 62024 99265 12/29/17 Network Switch Equipment $24,165.65 Check Total $24,165.65 Discovery Benefits 62025 831638-IN 12/29/17 HSA-Monthly $3.00 Check Total $3.00 Evergreen State Heat & AC 62026 35545 12/29/17 boiler service repair $1,487.04 Check Total $1,487.04 Ferguson Enterprises Inc #1539 62027 0580491 12/29/17 locate paint $215.40 Check Total $215.40 City Council Meeting January 16, 2018 237 CONSENT ITEM 7a

Schedule of Checks for the Checks Issued Since the January 2, 2018 Meeting Name Check # Invoice # Check Date Description Amount GCR Tires & Service 62028 801-39483 12/29/17 front tires for John Deere $352.03 62028 801-39601 12/29/17 rear tires for backhoe $1,430.66 62028 801-39360 12/29/17 flat repair EP103 $120.62 62028 12312017 12/29/17 service $4.35 Check Total $1,907.66 Girard Resources & Recycling, LLC 62029 47355 12/29/17 bark $56.63 Check Total $56.63 Gray & Osborne, Inc. 62030 13 12/29/17 NPDES Permit On-Call $695.52 62030 12 12/29/17 Dike Management Plan $283.92 62030 12 12/29/17 Dike Management Plan $283.92 62030 7 12/29/17 Sewer App $4,186.41 Check Total $5,449.77 Granite Construction Supply 62031 262_00070511 12/29/17 sign post parts $329.10 62031 262_00070499 12/29/17 sign order $956.38 Check Total $1,285.48 Grainger Inc. 62032 9417175925 12/29/17 Backplate $419.60 62032 9430073099 12/29/17 credit Full face respirators $-1,082.06 62032 9429801328 12/29/17 credit Backplate $-419.60 62032 9427523049 12/29/17 credit SCBA cylinders $-4,768.98 62032 9443899514 12/29/17 pump for plant watering $334.78 62032 9448850496 12/29/17 strap $34.42 62032 9615756807 12/29/17 nozzle $11.87 62032 9617524732 12/29/17 drain valve $194.51 62032 9640463932 12/29/17 windshield deicer $85.62 62032 9575701066 12/29/17 lab detergent $180.75 62032 9585786388 12/29/17 sewer nozzle $107.30 62032 9598173087 12/29/17 aerosol duster $12.83 62032 9598173087 12/29/17 graffiti wipes $91.25 62032 9616576097 12/29/17 cable ties $11.42 62032 9617134920 12/29/17 nozzle $11.44 62032 9565424679 12/29/17 supplies $688.34 62032 9565945772 12/29/17 chair, ink $446.54 62032 9565171189 12/29/17 windsock $252.65 62032 9567353892 12/29/17 ink $193.93 62032 9578732829 12/29/17 socket $37.24 62032 9571694067 12/29/17 LED lights $353.48 62032 9484341236 12/29/17 gloves, soap $78.81 62032 9484341236 12/29/17 gloves, soap $104.35 62032 9489482423 12/29/17 Thermoplastic Shelving $437.07 62032 9524981397 12/29/17 tack brooms $37.31 62032 9518614830 12/29/17 respirators $184.46 62032 9561504300 12/29/17 laundry detergent $55.56 62032 9442318136 12/29/17 hard hats, new inserts $21.07 62032 9442318136 12/29/17 hard hats, new inserts $21.07 62032 9442318136 12/29/17 hard hats, new inserts $21.07 62032 9442318136 12/29/17 hard hats, new inserts $42.14 62032 9467017332 12/29/17 drain valves $242.61 62032 9475426905 12/29/17 water tank for gator $121.73 62032 9448850504 12/29/17 strap $34.42 62032 9448680489 12/29/17 cargo strap, ratchet $151.52 62032 9442318144 12/29/17 door closers $953.69 62032 9449319996 12/29/17 Monitor $153.18 62032 9442318136 12/29/17 hard hats, new inserts $84.29 62032 9442318136 12/29/17 hard hats, new inserts $63.21 Check Total $4.89 City Council Meeting January 16, 2018

238 CONSENT ITEM 7a

Schedule of Checks for the Checks Issued Since the January 2, 2018 Meeting Name Check # Invoice # Check Date Description Amount Griffen Law Office 62033 6931 12/29/17 Indigent Defense Conflict Attorney $850.00 Check Total $850.00 Hach Chemical 62034 10775565 12/29/17 Lab Supplies $242.17 Check Total $242.17 H. D. Fowler Company 62035 I4717310 12/29/17 misc brass $1,654.78 62035 I4717406 12/29/17 meter box lids $584.82 Check Total $2,239.60 Home Depot - Streets 62036 7594203 12/29/17 small tools $329.99 Check Total $329.99 Home Depot - Storm 62037 7012886 12/29/17 mat $14.15 Check Total $14.15 Core & Main LP 62038 I242796 12/29/17 meters $4,041.30 62038 I282407 12/29/17 radio antennas $695.42 62038 H969722 12/29/17 meters $1,832.88 62038 I282309 12/29/17 meters $3,829.41 Check Total $10,399.01 Allstream 62039 15085101 12/29/17 WTP $57.51 62039 15085301 12/29/17 City Hall Digital Phone $68.29 62039 15085137 12/29/17 WWTP Phone $188.80 62039 15085585 12/29/17 Water Department Share Shop Phones $51.29 62039 15085585 12/29/17 Street Dept. Share Shop Phone $51.29 62039 15085585 12/29/17 Parks Share Shop Phones $25.63 62039 15085585 12/29/17 Fleet & Facilities Share Shop Phone $76.89 62039 15085585 12/29/17 Collections Share Shop Phone $51.29 62039 15085585 12/29/17 Storm Share Shop Phone $51.29 Check Total $622.28 James Mills 62040 Oct-Dec 2017 12/29/17 LEOFF I Reimbursement $1,354.80 Check Total $1,354.80 Kelley Imaging Systems Inc 62041 IN337591 12/29/17 City Hall Fax Machine $13.09 Check Total $13.09 Les Schwab Tire Center 62042 36800358867 12/29/17 winter change over $76.37 Check Total $76.37 McDaniel Do It Center - Parks 62043 496160 12/29/17 Restroom Remodel Supplies $-0.03 62043 496831 12/29/17 grab bar $27.26 Check Total $27.23 McDaniel Do It Center-SS 62044 496654 12/29/17 fasteners EP127 $3.31 62044 496461 12/29/17 brush $8.72 62044 496761 12/29/17 fasteners EP127 $3.71 62044 496395 12/29/17 fasteners EP9 $2.71 62044 496426 12/29/17 batteries, cleaner $45.10 Check Total $63.55 McDaniel Do It Center- Streets 62045 496731 12/29/17 lubricant, keys $9.02 62045 496713 12/29/17 office supplies $8.72 Check Total $17.74

City Council Meeting January 16, 2018 239 CONSENT ITEM 7a

Schedule of Checks for the Checks Issued Since the January 2, 2018 Meeting Name Check # Invoice # Check Date Description Amount McDaniel Do It Center - Water 62046 496496 12/29/17 tie wire $5.44 Check Total $5.44 McDaniel's Do It Center Wastewater 62047 496696 12/29/17 water $82.65 Check Total $82.65 Michael Lively 62048 Oct-Dec 2017 12/29/17 LEOFF I Reimbursement $330.00 Check Total $330.00 Mike Johnson 62049 12182017 12/29/17 meal reimbursement $32.00 Check Total $32.00 Nelson Truck 62050 656493 12/29/17 parks tommy lift EP156 $150.39 62050 12312017 12/29/17 service $2.26 Check Total $152.65 Northern Energy 62051 3072782075 12/29/17 propane $279.03 Check Total $279.03 Process Solutions 62052 32149 12/29/17 On-Call Services 10/1-12/15/17 $3,552.50 62052 32149 12/29/17 On-Call Services 10/1-12/15/17 $1,452.50 62052 32149 12/29/17 On-Call Services 10/1-12/15/17 $4,287.50 62052 32150 12/29/17 On-Call Services 10/1-12/15/17 $1,657.01 Check Total $10,949.51 Salt-Away Products, Inc. 62053 9760 12/29/17 salt-away container concentrate $155.79 Check Total $155.79 Snohomish County Department of Public Works 62054 I000462881 12/29/17 Traffic Light Maintenance $516.80 62054 I000462879 12/29/17 sweeping 11/1-11/30/17 $2,119.90 62054 I000462879 12/29/17 sweeping 11/1-11/30/17 $2,119.90 62054 I000462880 12/29/17 1st & Lincoln Overlay $25,531.05 Check Total $30,287.65 Snohomish County Pud #1 62055 163896317 12/29/17 #1000201937, 1119 Maple, Old Trail House $28.27 62055 108128268 12/29/17 #1000125224, 105 Cedar, Carnegie $186.40 62055 141117921 12/29/17 #1000141397, 2115 2nd, S Meter $3,038.63 62055 144449424 12/29/17 #1000528484, 2330 Baird, Clarks Pond L/S $68.24 62055 141117834 12/29/17 #1000141396, 2115 2nd, N Meter $6,032.48 62055 124698797 12/29/17 #1000417350, 1930 Stone Ridge, Lift Stat $119.02 62055 137822066 12/29/17 #1000571566, 501 2nd, Traffic Light $104.66 62055 127997919 12/29/17 Various Locations, Street Lighting $4,115.52 62055 104809889 12/29/17 116 Union Ave, Lights $67.04 62055 114752461 12/29/17 Various Locations, Street Lighting $1,100.64 62055 104810506 12/29/17 Various Locations, Street Lighting $31.59 62055 121391947 12/29/17 #1000125213, 169 Cypress, Pilchuck Light $201.54 62055 154297136 12/29/17 #1000483278, 1001 Ave D, Signal $64.43 62055 127997921 12/29/17 Various Locations, Street Lighting $275.52 62055 127997802 12/29/17 #1000380098, 1109 13th, Street Lighting $29.05 62055 157496824 12/29/17 Various Locations, Street Lighting $51.81 62055 147751913 12/29/17 #1000545615, 1610 Park, Hill Pk Sm Shelt $20.03 62055 124702727 12/29/17 #1000370579, 1301 Ave D, Street Lighting $20.78 62055 124704996 12/29/17 #1000320746, 2504 Menzel Lk, WTP $754.71 62055 154290310 12/29/17 #1000381307, 2014 Terrace, Intertie $18.89 62055 163903614 12/29/17 #1000578758, 1501 Ave D,Roundabout Light $127.67 62055 157495830 12/29/17 #1000385243, 1329 Bonneville, L/S $135.25

City Council Meeting January 16, 2018

240 CONSENT ITEM 7a

Schedule of Checks for the Checks Issued Since the January 2, 2018 Meeting Name Check # Invoice # Check Date Description Amount 62055 163907532 12/29/17 Various Locations, Traffic Light $47.76 62055 127995623 12/29/17 #1000575906, 400 Rainbow, Lift Station $146.35 62055 108133274 12/29/17 #1000531660, 9101 56th, Street Lighting $53.50 62055 111439604 12/29/17 #1000542988, 50 Lincoln, Lift Station $124.02 62055 127995719 12/29/17 #1000463019, 1801 Lakemount,Lift Station $313.38 62055 121388233 12/29/17 #1000275828, 1110 Ferguson, Lift Station $165.57 62055 127990927 12/29/17 #1000230125, 219 13th, S Zone Res $183.52 62055 134603776 12/29/17 #1000395660, 617 18th, Lift Station $209.40 62055 137815083 12/29/17 1330 Ferguson Park Road, Street Lighting $8.87 62055 147746032 12/29/17 #1000272824, 24022 24th, WTP House $244.06 62055 114745110 12/29/17 #1000515696, 1627 Terrace, N Zone Tank $18.89 62055 118066393 12/29/17 #1000368128, 700 Ave D, Street Lighting $47.18 62055 114754852 12/29/17 #1000482443, 505 Rainier, Lift Station $806.77 Check Total $18,961.44 Snohomish County Sheriff's Office 62056 I000462756 12/29/17 Law Enforcement Services November 2017 $181,186.17 62056 I000462756 12/29/17 Law Enforcement Services November 2017 $40,304.25 62056 I000462756 12/29/17 Law Enforcement Services November 2017 $9,414.66 62056 I000463702 12/29/17 Law Enforcement Services December 2017 $181,186.17 62056 I000463702 12/29/17 Law Enforcement Services December 2017 $40,304.25 62056 I000463702 12/29/17 Law Enforcement Services December 2017 $9,414.66 62056 I000462841 12/29/17 SRDTF JAG Grant Contribution $624.00 Check Total $462,434.16 Snohomish County Sheriff's Office Corrections 62057 2017-4277 12/29/17 Medical Nov 2017 $11.88 Check Total $11.88 Shred-It USA, Inc 62058 8123734434 12/29/17 Shred Documents Nov 2017 $75.45 Check Total $75.45 Smarsh, Inc 62059 325495 12/29/17 Archiving Platform - social media & text $340.00 Check Total $340.00 Snohomish Auto Parts 62060 521586 12/29/17 brake kleen $29.98 62060 523097 12/29/17 switch EP127 $15.83 62060 523332 12/29/17 lubricant EP120 $17.97 62060 523220 12/29/17 filters EP127 $45.72 62060 523121 12/29/17 pump oil $39.93 62060 522795 12/29/17 locking grease coupler $38.13 62060 523495 12/29/17 service parts EP10 $44.91 62060 521207 12/29/17 service parts EP103 $76.47 62060 523110 12/29/17 cordless light, leak dye $102.64 62060 522784 12/29/17 metal pliers $24.60 62060 521743 12/29/17 antifreeze EP127 $10.46 62060 522679 12/29/17 fuel filter EP120 $21.50 62060 522674 12/29/17 service parts EP120 $262.00 62060 521872 12/29/17 battery EP26 $124.11 62060 523447 12/29/17 oil filters EP127 $12.39 62060 523478 12/29/17 fuel filter EP127 $9.47 62060 523457 12/29/17 hexbit EP127 $5.48 62060 522852 12/29/17 reflective tape for sanders $94.35 62060 522442 12/29/17 impact socket $4.63 62060 522603 12/29/17 weatherstrip adhesive EP8 $10.11 62060 522581 12/29/17 socket EP120 $14.28 62060 522794 12/29/17 service parts EP120 $14.16 62060 522695 12/29/17 service parts EP120 $30.02 Check Total $1,049.14

City Council Meeting January 16, 2018 241 CONSENT ITEM 7a

Schedule of Checks for the Checks Issued Since the January 2, 2018 Meeting Name Check # Invoice # Check Date Description Amount Snohomish Co-Op 62061 281688 12/29/17 unleaded fuel EP178 $29.81 62061 281514 12/29/17 dyed fuel $81.77 Check Total $111.58 Sound Safety Products Co. 62062 179196/1 12/29/17 overalls - Deleuw $98.72 62062 179184/1 12/29/17 overalls - Galde $98.72 62062 181999/1 12/29/17 Safety Glasses, Boots $120.95 62062 181999/1 12/29/17 Safety Glasses, Boots $23.83 Check Total $342.22 Speedway Chevrolet 62063 110096 12/29/17 regulator, seal, weather strip EP48 $360.84 62063 109618 12/29/17 gas cap EP156 $30.55 62063 12282017 12/29/17 service $0.45 Check Total $391.84 Staples Advantage 62064 3364121698 12/29/17 office supplies $41.29 62064 3364121701 12/29/17 office supplies $45.59 62064 3364121703 12/29/17 office supplies $49.35 62064 3364121700 12/29/17 Office Supplies $67.62 Check Total $203.85 Summit Law Group PLLC 62065 89088 12/29/17 Labor Relations Services $174.00 Check Total $174.00 Sound Publishing 62066 EDH790622 12/29/17 File #17-17-SP NOA $55.04 Check Total $55.04 Tyler Enterprises 62067 Dec 2017 12/29/17 Bldg Insp Svcs Dec 2017 $400.00 Check Total $400.00 Usa Bluebook Inc 62068 442226 12/29/17 lab supplies $433.40 62068 444383 12/29/17 lab supplies $333.36 Check Total $766.76 US Bank CPS 62069 9781905319 12/29/17 Staples sit-stand workstation $631.02 62069 173022 12/29/17 Green River College training - Allen $180.00 62069 173021 12/29/17 Green River College training - Leach $180.00 62069 625-SLS104804 12/29/17 Digital Check Corp office supplies $38.69 62069 16545 12/29/17 Safeway wellness supplies $30.00 62069 A5HPG9 12/29/17 Gihost iPhone Data Recovery software $66.12 62069 J98S0 12/29/17 Amazon charge reversed $-11.84 62069 7221031 12/29/17 Amazon appointment book refills $25.06 62069 Acton 12/29/17 IMSA membership renewal - Acton $100.00 62069 Allen 12/29/17 IMSA membership renewal - Allen $100.00 62069 3762 12/29/17 Premier Polaris fuses $43.63 62069 12142017 12/29/17 Brown Bear car wash $8.00 62069 5WFY0 12/29/17 Amazon prime membership $106.62 62069 8394642 12/29/17 Amazon fluke clamp meter $150.23 62069 3645018 12/29/17 Amazon kleenex and sponges $21.97 62069 3645018 12/29/17 Amazon cork board $58.99 62069 6060232 12/29/17 Amazon sweatshirt - Murphy $81.81 62069 9466615 12/29/17 Amazon workfit desk $559.62 62069 101946547 12/29/17 Displays2Go outdoor frames $142.30 62069 78110 12/29/17 Economy Fence Center fence repair $69.66 62069 62278 12/29/17 TLG Learning IT training class - Sherred $1,946.75 62069 67798 12/29/17 TLG Learning IT training class - Leong $1,946.75

City Council Meeting January 16, 2018

242 CONSENT ITEM 7a

Schedule of Checks for the Checks Issued Since the January 2, 2018 Meeting Name Check # Invoice # Check Date Description Amount 62069 4873054 12/29/17 Amazon vacuum attachment $154.05 62069 8309058 12/29/17 Amazon gloves $129.60 62069 7525054 12/29/17 Amazon log book $53.56 62069 5242621 12/29/17 Amazon sweatshirt - Allen $81.81 62069 6045067 12/29/17 Amazon foam back cushion support $30.56 62069 4739430 12/29/17 Amazon iPhone case and charger $46.65 62069 87355466-1 12/29/17 Aramark jacket - Karschney $33.80 62069 69485 12/29/17 WA Wastewater Collections Assoc - Miller $20.00 62069 3874441 12/29/17 Water Distribution Exam - Miller $98.00 62069 162419 12/29/17 Sillworks replacement hard drives $171.87 Check Total $7,295.28 U.S. Bank N.A - Custody 62070 December 2017 12/29/17 Monthly Maintenance Fee $26.00 Check Total $26.00 U.S. Postmaster 62071 122217-122817 12/29/17 Clerk Postage $12.54 62071 122217-122817 12/29/17 Finance Postage $6.65 62071 122217-122817 12/29/17 Police Postage $5.97 62071 122217-122817 12/29/17 Planning Postage $7.09 62071 122217-122817 12/29/17 Water Postage $126.70 62071 122217-122817 12/29/17 Sewer Postage $119.60 Check Total $278.55 Utilities Underground Location 62072 7120206 12/29/17 December locates $24.12 62072 7120206 12/29/17 December locates $24.13 62072 7120206 12/29/17 December locates $24.13 Check Total $72.38 Voyager 62073 869344283801 12/29/17 Fleet Fuel $2,230.52 Check Total $2,230.52 Weed, Graafstra & Associates, Inc. P.S. 62074 205 12/29/17 Attorney Fees $1,589.25 62074 228 12/29/17 Attorney Fees $8,357.50 Check Total $9,946.75 Washington State Department of Enterprise Services 62075 73170908 12/29/17 Business Cards - Palmer & Ray $48.00 62075 73170908 12/29/17 Business Cards - Sherred $24.00 62075 73170908 12/29/17 Business Cards - Leach, Allen, Schorsch $72.00 62075 73170908 12/29/17 Business Cards - Eidem & Hoole $48.00 62075 73170908 12/29/17 Business Cards - Johnson $24.00 62075 73170908 12/29/17 Business Cards - Kartak $24.02 Check Total $240.02 Washington State Patrol 62076 I18000636 12/29/17 CPL Background Checks Dec 2017 $84.00 62076 I18003887 12/29/17 Solicitor's License Screening $38.00 Check Total $122.00 Xerox Corporation 62077 091832900 12/29/17 #MX4-332344, 112117-122117 $531.06 62077 091832905 12/29/17 #XL3-882416, 112117-122117 $60.14 62077 091832903 12/29/17 #GNX-212028, 112417-122217 $100.48 62077 091832901 12/29/17 #NKA-119437, 092217-122217 $82.13 62077 091832906 12/29/17 #WTM-003709, 112117-122117 $16.54 62077 091832904 12/29/17 #XL3-621283, 113017-122117 $66.85 62077 091832902 12/29/17 #XL1-395908, 112117-122117 $74.65 62077 091832899 12/29/17 #GNX-216657, 112417-122217 $130.32 Check Total $1,062.17

City Council Meeting January 16, 2018 243 CONSENT ITEM 7a

Schedule of Checks for the Checks Issued Since the January 2, 2018 Meeting Name Check # Invoice # Check Date Description Amount Zumar Industries 62078 1183 12/29/17 sign order $2,476.79 Check Total $2,476.79 Batch Total $646,256.04 Washington State Department of Revenue ACH Dec 2017 1/9/18 Excise Tax Check Total $18,785.48

Total All Batches $665,440.53

Ace Equipment Rentals 62079 75352 1/11/18 lift rental $330.03 Check Total $330.03 Agile IT, Inc 62080 223732 1/11/18 Exchange Online Mailbox Licenses $640.00 Check Total $640.00 Association of Washington Cities 62081 57027 1/11/18 Drug and Alcohol Consortium $1,111.00 62081 56807 1/11/18 2018 AWC Membership $6,498.00 62081 57605 1/11/18 workers comp retro program service fee $3.16 62081 57605 1/11/18 workers comp retro program service fee $12.11 62081 57605 1/11/18 workers comp retro program service fee $27.80 62081 57605 1/11/18 workers comp retro program service fee $42.35 62081 57605 1/11/18 workers comp retro program service fee $69.09 62081 57605 1/11/18 workers comp retro program service fee $30.43 62081 57605 1/11/18 workers comp retro program service fee $97.42 62081 57605 1/11/18 workers comp retro program service fee $42.24 62081 57605 1/11/18 workers comp retro program service fee $654.02 62081 57605 1/11/18 workers comp retro program service fee $1,380.56 62081 57605 1/11/18 workers comp retro program service fee $322.42 62081 57605 1/11/18 workers comp retro program service fee $98.30 62081 57605 1/11/18 workers comp retro program service fee $453.75 62081 57605 1/11/18 workers comp retro program service fee $33.72 62081 57605 1/11/18 workers comp retro program service fee $457.27 62081 57605 1/11/18 workers comp retro program service fee $30.92 62081 57605 1/11/18 workers comp retro program service fee $33.71 62081 57605 1/11/18 workers comp retro program service fee $199.32 62081 57605 1/11/18 workers comp retro program service fee $529.81 62081 57605 1/11/18 workers comp retro program service fee $33.71 62081 57605 1/11/18 workers comp retro program service fee $178.33 62081 57605 1/11/18 workers comp retro program service fee $349.39 62081 57605 1/11/18 workers comp retro program service fee $28.57 Check Total $12,717.40 Brim Tractor Co Inc 62082 IM99092 1/11/18 service parts EP129 $122.75 Check Total $122.75 Champion Bolt & Supply Inc 62083 663250 1/11/18 bolts $24.54 Check Total $24.54 Comcast 62084 731347-1/18 1/11/18 Traffic Light 2nd & D Internet $126.21 62084 482016-1/18 1/11/18 Manager Share City Hall Internet $16.80 62084 482016-1/18 1/11/18 Human Resources Share City Hall Internet $16.80 62084 482016-1/18 1/11/18 Clerk Share City Hall Internet $16.80 62084 482016-1/18 1/11/18 Inspection Share City Hall Internet $16.80 62084 482016-1/18 1/11/18 Economic Dev Share City Hall Internet $16.80 62084 482016-1/18 1/11/18 Planning Share City Hall Internet $16.80 62084 482016-1/18 1/11/18 Finance Share City Hall Internet $16.80

City Council Meeting January 16, 2018

244 CONSENT ITEM 7a

Schedule of Checks for the Checks Issued Since the January 2, 2018 Meeting Name Check # Invoice # Check Date Description Amount 62084 482016-1/18 1/11/18 IS Share City Hall Internet $16.81 62084 482016-1/18 1/11/18 Engineering Share City Hall Internet $16.80 62084 892709-1/18 1/11/18 Water Share Shop Internet $18.56 62084 892709-1/18 1/11/18 Storm Share Shop Internet $18.57 62084 892709-1/18 1/11/18 Wastewater Share Shop Internet $18.57 62084 892709-1/18 1/11/18 Streets Share Shop Internet $18.57 62084 892709-1/18 1/11/18 Parks Share Shop Internet $9.28 62084 892709-1/18 1/11/18 Fleet & Facilities Share Shop Internet $27.84 62084 475077-1/18 1/11/18 Skate Park Video $106.21 Check Total $495.02 Frontier 62085 118075-1/18 1/11/18 Telemetry Auto Dialer $68.77 62085 227125-1/18 1/11/18 CSO Alarm Dialer $59.46 62085 413125-1/18 1/11/18 WWTP DSL $79.99 62085 1214935-1/18 1/11/18 Fleet & Facilities Share Shop Fax $29.13 62085 1214935-1/18 1/11/18 Water Share Shop Fax $14.57 62085 1214935-1/18 1/11/18 Storm Share Shop Fax $14.57 62085 1214935-1/18 1/11/18 Street Share Shop fax $14.57 62085 1214935-1/18 1/11/18 Parks Share Shop fax $14.56 62085 406075-1/18 1/11/18 City Manager Share City Hall Fax $9.73 62085 406075-1/18 1/11/18 Human Resources Share City Hall $9.76 62085 406075-1/18 1/11/18 Clerk Share City Hall Fax $9.76 62085 406075-1/18 1/11/18 Building Inspection Share City Hall Fax $9.76 62085 406075-1/18 1/11/18 Economic Development Share City Hall Fax $9.76 62085 406075-1/18 1/11/18 Planning Share City Hall Fax $9.76 62085 406075-1/18 1/11/18 Finance Share City Hall Fax $9.76 62085 406075-1/18 1/11/18 IS Share City Hall Fax $9.76 62085 406075-1/18 1/11/18 Engineering Share City Hall Fax $9.76 Check Total $383.43 Home Depot - Parks 62086 6013997 1/11/18 plywood $45.06 62086 5590130 1/11/18 storage totes $81.24 Check Total $126.30 Home Depot - Shop 62087 6571470 1/11/18 batteries $28.32 Check Total $28.32 Home Depot - Storm 62088 4072795 1/11/18 moss killer $11.20 62088 4571611 1/11/18 moss killer $11.20 62088 6140930 1/11/18 plug $1.80 Check Total $24.20 IER Environmental Services, Inc 62089 2018-3000 1/11/18 Magnesium Hydroxide $9,753.54 Check Total $9,753.54 Questica Inc 62090 209606 1/11/18 Software Maintenance $3,121.93 Check Total $3,121.93 Snohomish County Cities & Towns 62091 2018 1/11/18 2018 Membership $100.00 Check Total $100.00 Snohomish County Clerks And Finance Officers Assoc 62092 2018 1/11/18 SCCFOA Membership - Burton & Bruland $50.00 Check Total $50.00 Snohomish Senior Center 62093 17-229 1/11/18 Monthly Fee $1,000.00 Check Total $1,000.00 Unum Life Insurance

City Council Meeting January 16, 2018 245 CONSENT ITEM 7a

Schedule of Checks for the Checks Issued Since the January 2, 2018 Meeting Name Check # Invoice # Check Date Description Amount 62094 220603027-1/18 1/11/18 retiree life insurance - January 2018 $157.00 Check Total $157.00 US Bank CPS 62095 95836 1/11/18 Safeway ice $11.16 62095 74703 1/11/18 Grove Family Clinic DOT physical - Allen $120.00 62095 428 1/11/18 SCC Meeting - Merrill $35.00 Check Total $166.16 Washington Cities Insurance Authority 62096 18117 1/11/18 Liability/Program Assessment for 2018 $229,797.00 Check Total $229,797.00 Batch Total $259,037.62

Total All Batches $259,037.62

I hereby certify that the goods and services charged on the vouchers listed below have been furnished to the best of my knowledge. I further certify the claims below to be valid and correct.

______City Treasurer

WE, the undersigned council members of the City of Snohomish, Washington, do hereby certify that the claim warrants #62012 through #62096 in the total of $924,478.15 are approved for payment on January 16, 2018.

______Mayor Councilmember

______Councilmember Councilmember

City Council Meeting January 16, 2018 246 CONSENT ITEM 7b

Date: January 16, 2018

To: City Council

From: Max Selin, P.E., Senior Utilities Engineer

Subject: Authorize the Mayor to sign a Letter to the Washington State Department of Health, Requesting a 2-Year Extension of the City's 2011 Water System Plan

SUMMARY: The purpose of this agenda item is to have the City Council approve and adopt a 2-year extension of the City’s 2011 Water System Plan (WSP) and authorize the Mayor to sign a letter to the Washington State Department of Health (DOH) requesting a 2-Year Extension of the 2011 WSP.

BACKGROUND: The City completed and adopted its most recent WSP in 2011. At the time of its adoption, the DOH required purveyors to update their WSP’s in accordance with WAC 246- 290-100 every 6-years. Recently, this WAC requirement changed and now DOH approval of a WSP is effective for ten years.

Requests for Qualifications from professional engineering firms was advertised in March and April 2017. After reviewing all submittals and interviewing three engineering firms, RH2 Engineering Inc., was selected as the most qualified engineering firm to complete the 2018 WSP. The City Council authorized the City Manager to sign and execute the Professional Services Agreement with RH2 Engineering, Inc., at the August 15, 2017, Council meeting to complete the 2018 WSP.

On November 9, 2017, City staff met with DOH staff for the required WSP pre-planning meeting. At this meeting, DOH staff conveyed that the current 2011 WSP expires on January 30, 2018. In consideration of this expiration date and that the 2018 WSP is currently in progress, DOH requested that RH2 Engineering Inc., perform a review of the 2011 WSP to verify that the analyses and recommendations contained in the 2011 WSP are still valid, and that the 2011 WSP currently meets the DOH’s water system planning requirements. If the 2011 WSP analyses and recommendations were proven still valid, DOH requested that RH2 Engineering provide a technical review letter summarizing the results. Lastly, DOH requested that the City Council approve and adopt a 2-year extension of the WSP and subsequently authorize the Mayor to sign a letter to DOH requesting this extension.

The 2-year extension will allow the 2018 WSP, currently in progress, and all public hearings, applicable agency reviews and Council adoption to be completed while the 2011 WSP is still valid.

BUDGETARY IMPACTS:

The 2018 WSP is identified in the 2018 Budget under the Water Fund (No. 401). In August 2017, City Council authorized the professional services agreement with RH2 Engineering, Inc. to complete the 2018 WSP for an amount not to exceed $132,026. The review, validation and technical review letter to be completed by RH2 Engineering, Inc. for the 2011 WSP will cost under $3,000 and will be funded by the 2018 RH2 Water On-Call Professional Services Agreement. City Council Meeting January 16, 2018 247 CONSENT ITEM 7b

STRATEGIC PLAN REFERENCE Initiative # 5: Become more environmentally sustainable.

RECOMMENDATION: That the City Council APPROVE and ADOPT a two-year extension of the City’s 2011 Water System Plan and AUTHORIZE the Mayor to sign a Letter to the Washington State Department of Health Requesting a two-year extension of the 2011 Water System Plan.

ATTACHMENT: RH2 Engineering Inc., City of Snohomish Water System Plan – Approval Extension Request Water System ID No. 809158 dated December 27, 2017.

City Council Meeting January 16, 2018 248 December 27, 2017 RH2 ENGINEERING, INC. www.rh2.com [email protected] 1.800.720.8052 Mr. Richard Rodriguez Regional Planner Washington State Department of Health WASHINGTON LOCATIONS Northwest Drinking Water Operations 20425 72nd Avenue South, Suite 310, K17-12 BOTHELL MAIN OFFICE Kent, WA 98032-2358 22722 29th Drive SE, Suite 210 Bothell, WA 98021 Sent via: Email and US Mail

BELLINGHAM Subject: City of Snohomish Water System Plan – Approval Extension Request Water System ID No. 809158 EAST WENATCHEE

ISSAQUAH Dear Mr. Rodriguez:

RICHLAND On behalf of the City of Snohomish (City), RH2 Engineering, Inc., (RH2) is requesting a 2-year extension for the City’s 2011 Water System Plan (WSP) approval. On January 30, TACOMA 2012, the City’s WSP was approved for a 6-year term (expiring January 30, 2018). Since then, there have been few significant changes that were not already documented in the 2011 WSP, and the projects and growth presented in the current WSP are still accurate projections of the City’s current planning efforts. OREGON LOCATIONS SYSTEM CAPACITY PORTLAND MAIN OFFICE Demand 6500 SW Macadam Ave. Suite 125 Portland, OR 97239 In the 2011 WSP, 2008 was used as the base year for demand projections. With the exception of 2009, when actual demands exceeded projected demands by less than MEDFORD 1 percent, the City’s annual water demand between 2009 and 2016 has been less than the projected demand in the City’s WSP for each corresponding year, both with and without savings projected from the City’s Water Use Efficiency (WUE) program. Table 1 shows the difference between the annual demand projections in the 2011 WSP, both with and without WUE, and the actual system demand for the years 2009 through 2016. The projected demand volumes are taken from Table 4-14 of the 2011 WSP and include estimated non-revenue water. Because the actual system demands have not reached the projected 2010 system demands, many of the conclusions of the analyses performed for the year 2010 remain applicable, and even these may be conservative as actual system demands have been trending downwards since 2009.

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Table 1 Projected vs. Actual Water Demand Projected Annual Projected Annual Demand without Demand with Water Actual Annual Water Use Efficiency1 Use Efficiency1 Demand Year (MG) (MG) (MG)

2009 345 344 348 2010 350 349 303 2011 358 356 306 2012 366 364 338 2013 375 372 325 2014 376 373 315 2015 384 382 332 2016 393 390 318

1 = 2011 WSP, Table 4-14.

Storage Table 7-6 of the 2011 WSP presented the existing 2008 storage evaluation, showing a system-wide storage surplus of 1.53 million gallons (MG) under normal operating conditions. The City no longer provides storage to transmission main customers now that the water treatment plant has been decommissioned. The 2011 WSP projected that the system will continue to maintain a storage surplus under normal operating conditions through the 2028 planning period. Because system demands are significantly less than those projected in the 2011 WSP, the actual storage requirements are lower than those calculated during the 2011 WSP. Specifically, the actual annual demand for 2016, as shown in Table 1, is less than the projected demand for 2009, indicating that storage requirements for 2016 are less than those calculated for 2009. The City is still working on implementation of the pressure zone reconfigurations in the system. This project will be re-evaluated and re-scheduled, and any additional storage-related projects will be identified when the updated storage calculations are prepared as part of the WSP update. Water Use Efficiency Three WUE goals were established in the 2011 WSP: 1. Save 7,644 gallons per day (gpd) on an average annual basis upon full implementation of the program by January 1, 2014; 2. Reduce the rolling 3-year average distribution system leakage (DSL) to less than 10 percent by the end of 2011; and 3. Increase awareness among all of the City’s water users of the value and importance of conserving water and of the methods available to achieve reductions in water use.

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Based on the actual annual demands shown in Table 1, the City has met and exceeded the water savings goals from 2010 onward. The second goal has been continuously achieved since 2009 per the City’s WUE Annual Performance Reports. The annual distribution system leakage reported in the City’s WUE reports is shown in Table 2. Table 2 Distribution System Leakage

Distribution System Year Leakage

2009 8.0% 2010 6.0% 2011 6.3% 2012 9.2% 2013 8.4% 2014 6.7% 2015 8.9% 2016 9.0%

Every year since 2009, the City has implemented programs aimed at achieving its third goal detailed in the WUE reports, such as public education and outreach, indoor and outdoor conservation kits, a regional toilet rebate program, a school conservation curriculum, adding consumption history to utility bills, and a lawn watering calendar. CAPITAL IMPROVEMENT PLAN The City has worked to complete capital improvement plan (CIP) projects per the schedule outlined in Chapter 9 of the 2011 WSP, although this has not always been feasible due to the economic uncertainty of the recession. Since 2011, the following CIP projects have been completed. • Pilchuck River Water Treatment Plant decommissioned. • Reservoir No. 1 decommissioned. • Pressure zone reconfigurations underway. • New PRV installation and rebuilds. • Water main replacements. • SCADA system updated and upgraded. The City is currently working to identify ways to transfer the transmission main customers to the Snohomish County Public Utility District No. 1 or to individual wells so that the transmission main can be decommissioned in the future. Additional scheduled CIP projects are also being completed as possible. The City is committed to ensuring a safe and reliable water service; as such, it is not anticipated that major improvements beyond those identified in the 2011 WSP will be required to ensure adequate water service throughout the City’s system.

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LAND USE AND GROWTH The City’s land use plan has not changed significantly since the 2011 WSP was prepared. Some minor changes have occurred, and the new Pilchuck District designation has been applied to an area in the southeast corner of the City. The current 2035 population projection for the City limits (12,139) is lower than the 2028 population projection for the City limits used in the 2011 WSP (13,830). In 2008 there were approximately 692 water system customers outside the City limits, projected to increase to approximately 794 customers by 2028. It is likely that the 2037 total water system population projections developed during the current WSP update will be lower than the 2028 City limits population projections used in the 2011 WSP. As stated in the Demand section, the actual 2016 system demands are significantly lower than projected demands, likely due in part to population growth being lower than projected. Therefore, the City’s revised population growth projections are not expected to adversely impact the system capacity within the 2-year extension period. POLICIES AND DESIGN CRITERIA The City’s policies and design criteria, as presented in Chapter 5 of the 2011 WSP, have not been updated significantly since the prior planning effort. The City is committed to operating its system and constructing new projects according to these policies and criteria. FINANCIAL PROGRAM The financial analysis in Chapter 10 of the 2011 WSP includes the funding plan for the capital improvements the City is currently pursuing. The City is continuing to fund and construct capital improvement projects as is economically feasible. SEPA COMPLIANCE Since the 2011 WSP, no changes have occurred that would require a new Determination of Non-significance to be issued.

The City will place the Extension Request on the council agenda for the January 16, 2017, City Council meeting, where final council approval and adoption will take place. The City Council will then authorize the Mayor to sign a letter to the Department of Health requesting the 2-year extension of the WSP. The City requests, and RH2 recommends, that the 2011 WSP’s existing approval be extended by 2 years as the analyses and recommendations contained in the WSP are still valid, and the WSP currently meets the Department of Health’s water system planning requirements.

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If you have any questions regarding this submittal, please contact me directly at (425) 951-5394.

Sincerely, RH2 ENGINEERING, INC.

Michele Campbell, PE Project Manager

12/27/2017 12/27/2017 Richard Ballard, PE Director RLB/MRC/ZS/sp cc: Ms. Max Selin, PE, City of Snohomish Mr. Tim Jackson, City of Snohomish

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City Council Meeting January 16, 2018 254 CONSENT ITEM 7c

Date: January 16, 2018

To: City Council

From: John Kartak, Mayor

Subject: Confirmation of Mitch Cornelison’s Appointment to the Planning Commission

SUMMARY: I am pleased to nominate Mitch Cornelison to Position 3 of the Planning Commission to fill the unexpired term of Stephen Dana. The term will run until January 17, 2019.

BACKGROUND: With his election to the City Council, Planning Commissioner Stephen Dana resigned from the Planning Commission on December 6, 2017. An application period was opened shortly thereafter and ran through December 22, 2017. The City received 13 applications. After careful consideration of all the applications, I narrowed the list to five candidates. I interviewed the five candidates with the assistance of Planning & Development Services Director Glen Pickus.

Snohomish Municipal Code (SMC) 2.16.020, Members – Qualifications, states, “The members of the Planning Commission shall be appointed by the Mayor, subject to confirmation by the City Council.” The code section also states the appointment must be consistent with SMC 2.06.030 2.06.035 and that, “The Mayor shall strive to maintain a diverse representation of membership.” SMC 2.06.030, Residency Requirements, requires the majority of commission members must live within city limits.

SMC 2.06.035, Exception to the Residency Requirements, states members of the Planning Commission must live within the City’s urban growth area, which includes the city limits.

ANALYSIS: Pursuant to SMC 2.16.020, I am requesting City Council confirmation of my appointment of Mitch Cornelison to fill the unexpired term of Position 3 of the Planning Commission.

Mitch lives in Snohomish. He is a 20-year resident with an engineering background and is an antique home restoration expert. Throughout his residency, he has been an active participant in community events and discussions. I have selected Mitch because he thoughtfully articulates a strong love for small town values in a respectful manner that best advocates for the wishes of our community as a whole.

Since Mitch is a City resident, his appointment to the Planning Commission is consistent with the requirements of both SMC 2.06.030 and SMC 2.06.035. With his appointment, a majority (six of seven) of the Planning Commissioners will be Snohomish residents.

BUDGETARY IMPACTS: None

STRATEGIC PLAN REFERENCE: Not applicable

COMPREHENSIVE PLAN REFERENCE: Not applicable

RECOMMENDATION: That the City Council CONFIRM the appointment of Mitch Cornelison to fill the unexpired term of Planning Commissioner Position No. 3.

ATTACHMENT: Planning Commission application from Mitch Cornelison

REFERENCE DOCUMENT: SMC 2.06 – Uniform Policies for Boards and Commissions City Council Meeting January 16, 2018 255 From: Pat Adams To: Glen Pickus; Brooke Eidem Subject: Fw: Online Form Submittal: City Board or Commission Open Position Application Date: Friday, December 22, 2017 10:16:58 AM

From: [email protected] Sent: Friday, December 22, 2017 9:57:02 AM To: Pat Adams; Debbie Burton Subject: Online Form Submittal: City Board or Commission Open Position Application

City Board or Commission Open Position Application

Name: Mitch Cornelison

Address: 331 Ave F

Home Phone: REDACTED

Cell: Field not completed.

Work #: Field not completed.

E-mail: REDACTED

City Resident: Yes

How long? 20 years

If you are not a Field not completed. resident of the City please indicate the type of affiliation(s) you have with the City?

Please list any None previous City appointments or offices:

Other Community Old Homes Group, Community Activist affiliations or activities you feel would be a benefit to this position:

Why are you interested Preserve Snohomish Small Town Feel, maintain consistency of in serving on this appropriate development to the cities vision statement, Reduce advisory board? ordinanceCity Councilrisk for new Meeting issues January 16, 2018 256 What talents or Mechanical Engineer, vintage home restoration expert, long term experience would you involvement and participation in City Planning issues bring to the position?

What are your primary new development compatability, reuse of historic structures, interests in City transportation, and pedestrian appeal, maintain single family Government and City characteristics while managing future growth Services?

Please relate any All Snohomish families move here(and tourists visit here) for the special goals you may same small-town feel . All planning decisions must be weighed have for the City: against maintaining our unique position in the Seattle region while addressing the needs of future development on our terms

Any other comments or I have long been a community activist and it is time to serve the information you wish to public as a whole to support their needs provide for Mayor and Council consideration:

Signature: Mitch Cornelison

Date: 12/22/2017

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City Council Meeting January 16, 2018 257