2021.08.17 Cowpacket

The Committee of the Whole includes all City Council Members

CITY COUNCIL COMMITTEE OF THE WHOLE AGENDA Tuesday, August 17, 2021 5:30 P.M. Virtual Only

Due to current public health concerns and associated orders – this is a Virtual Meeting – All City Councilmembers and Staff will attend virtually via Zoom. Members of the public are welcome to dial in or watch the meeting. See page 2 for additional information.

Call to Order

I. Good of the Order

II. Items: 1. Seattle Art Project – 20th Anniversary of 9/11 (25-minute presentation / 20-minute discussion) presentation – D. Brudnicki, Council

2. Financial Planning Process (5 minutes) discussion/update – R. Cotton, Administration

3. Personnel Manual Update Process (15 minutes) discussion/update – R. Cotton, Administration

4. Council Retreat Update (5 minutes) discussion/update – R. Cotton, Administration

III. Adjournment

Written Reports Submitted By: • City Administrator Recruitment Update Administration • Second Quarter 2021 Financial Report Finance

Parking Lot / Upcoming Items Items that staff is working on for a future agenda (in alphabetical order). • Cottage Home Policy • Employee Manual (repeal Chapter 4 of DMC) • Public Works Design Standards • Utility Code Update (DMC Chapter 9) • Wireless Facilities Policy

Zoom Webinar Information

When: Aug 17, 2021 05:30 PM Pacific Time (US and Canada)

Topic: Duvall Committee of the Whole meeting - August 17, 2021

Please click the link below to join the webinar: https://zoom.us/j/95223629686

Or One tap mobile : US: +12532158782,,95223629686# or +13462487799,,95223629686#

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International numbers available: https://zoom.us/u/aetP7qdlTf

Version 1

INTERIM CITY ADMINISTRATOR

To: Mayor Amy Ockerlander Duvall City Council Members From: Ryan Cotton, Interim City Administrator Date: August 11, 2021 Subject: Independent Financial Plan Request For Proposal, Calendar, and Budget

Summary The City Council set a budget of $20,000 for an independent financial plan in the 21/22 Biennium Budget. A presentation was made by Jim Nelson of Davidson Company on April 20, 2021 upon invitation from Council Member Lengyel. The Interim City Administrator was assigned by Mayor Ockerlander to initiate an RFP.

Residential growth is creating the need to add staff and increase operating expenses. Duvall will likely be categorized as a “First-Class City” under Washington state law in the next decade with the resultant new potential financial expectations. Despite Duvall’s healthy revenue and record residential growth, the revenue and service expenditures of nearly all Washington cities is unstainable in the long-term.

The combination of Council and community desires, 11 additional operating staff (some newly budgeted, others planned), the need for capital reinvestment, fiscal uncertainty with sales tax continued growth, and changing utility taxpayers (fewer cable company customers, for example), have led Council to conclude that the review and recommendations from a qualified Consultant will provide the best blueprint for helping the organization thrive over the next ten years, enhance education to the community should a bond issue arise, and provide assurance that certain policy choices are possible, or not possible, depending on a Financial Plan’s conclusions.

The intent is to secure a financial consultant to guide Duvall’s leadership through the development of a financial forecasting model to help achieve long-term financial sustainability. The intent is to be forward thinking and to exercise care with scarce resources, yet to also give the elected Mayor and Council Members knowledge about how to achieve the most with the resources that can be expected.

Duvall’s bottom-line questions are whether the new staffing is sustainable, how to make the staffing sustainable if not, and how to fund the capital reinvestment needed?

Additional Background

Through understanding Duvall’s revenues, expenditures, and trends better the Mayor and City Council could monetize the major policy choice “levers” that could in turn enable policymakers to make policy choices. It is therefore hoped this independent analysis and forecast will provide recommendations to improve future forecast’s accuracy, depending on the assumptions and future policy choices. It is further hoped that the City’s method for creating future biennial budgets will be informed by this Plan and that the ten-year plan will be updatable via plugging in more recent numbers into the spreadsheet (i.e. pulling levers) that will become the property of Duvall upon acceptance.

15535 Main Street NE · P.O. Box 1300 · Duvall, WA 98019 · 425.788.1185 · Fax 425.788.8097 www.duvallwa.gov The expected Ten-Year Financial Plan (the Plan) is thereby expected to:

• Identify any structural budget issues; • Help evaluate the long-term impact of individual biennium budget decisions; • Create a long-view (Ten-Years) for strategic decision making that can be updated with approval of each biennium’s numbers; • Better understand the long-term impacts on the General Fund’s unreserved and other fund balances; • Better understand the project outcomes of various volatile policy and economic futures/scenarios/”levers”; and • Evaluate capital financing options for the City, including the use of bonding packages, applicable federal or state grants, regionalization, and other potential funding strategies.

Note: Approximately $30 million of capital projects are expected to be funded while still trying to accomplish the service demands with up to 11 more staff members (newly budgeted or possibly recommended to be budgeted-- four of which will be term-limited) while planning on implementing results of a soon-to-be- completed Compensation Study. Some positions are likely to be recommended for pay increases to improve retention. Although progress has been made over the last few years in tackling a backlog of capital improvement desires, additional funding will be required for building reinvestments, parks and related amenities, street reconstruction, major capital equipment, and other related projects. Complicating matters, the City of Duvall operates on a Cash Basis, so a true financial picture beyond a given budget is currently difficult to see. Another intent of long-time financial Planning is to get both branches of government (Mayor and the City Council) moving in the same direction at the midway point of the 21/22 Biennium.

The results of this Plan will be combined with the results of three other plans that are already under contract: a capital facilities options, a plan for utility options, and a compensation study. The Consultant will have access to these outcomes so they can think holistically about an improved financial future, while minimizing the City’s financial risk.

It is expected that some of the goals cannot be achieved with the funds available; the consultants are being asked to submit their proposals with several alternative cost scenarios and advise how the City could streamline, modify, or otherwise phase the project for the best initial outcomes, as well as successive years of funding. To facilitate these future funding choices, the RFP named five of the City’s desires as “alternates” for individual pricing and potential budget amendment consideration.

Three providers have been in contact with the Interim City Administrator so far. Upon review and evaluation of the consultants’ submittals by the Interim City Administrator and Finance Director, a recommendation will be submitted to the Mayor for award.

RFP Schedule

Event Date (All times Pacific)

RFP Release August 1, 2021

Pre-Proposal Conferences (optional) August 16 and 23, 8:30 AM remotely

Email Re: Intent to Apply (desirable) August 16, 2021

Responses Due By Tuesday, August 24th, 11 AM Interview (depending on respondents) Monday, August 30th, 2 PM remotely

Briefing to Finance & Adm. Committee (FAC) September 2nd at 3 PM

Recommendation to Mayor and City Council September 3, 2021

Staff Briefing to City Council Committee of September 7, 2021 the Whole

Mayoral Approval September 8, 2021

Notice to Proceed & Start Date September 9, 2021

Recommendation Answer questions refine the intent if necessary and discuss budget flexibility.

Attachments Full RFP

Independent Financial Advisor to Conduct A Ten-Year Financial Plan

Request For Proposals

FINAL August 5, 2021

Due by August 24th by 11:00 AM on

Public Purchase

or to

Jodi Wycoff, City Clerk [email protected]

NOTICE & GENERAL INFORMATION

The City of Duvall is interested in contracting with an independent, municipal advisor to research, provide, and recommend a Ten-year Financial Plan, complete with at least six (6) alternate scenarios with each of their spreadsheets in updatable format, and/or a better outcome tool, that you recommend based on your experience.

Your response should be sent to the Public Purchase at the location below or sent to City Clerk Jodi Wycoff, [email protected]. The deadline for submittal of proposals is 11:00 AM, August 24th Pacific Time, 2021.

The City is using Public Purchase to post, respond to inquiries, and accept responses. To register with Public Purchase for free, go to the link provided below and follow the registration instructions under the section titled “Register for Free.” (It can take up to 24 hours for an account to be activated, so make sure you register well ahead of the proposal deadline. Once you’ve registered, follow directions to register under the City of Duvall. This will allow you access to the request for proposal, the ability to ask questions, read answers to questions others have summitted, and the ability to submit your proposal electronically.) Electronic submittal is the preferred way of proposal delivery.

To reply to this RFP, please submit a proposal of no more than five pages covering the items listed at the end of this packet regarding RESPONSE TEMPLATE COVER SHEET. All materials should be submitted in one packet at the time and in the manner noted above.

If you are unable to submit your proposal electronically, one copy of the proposal may be submitted to Duvall City Hall no later than the deadline listed above. All proposals must be sealed in an envelope and clearly marked “Proposal for Ten-Year Financial Plan.” All proposals and accompanying documentation will become the property of the City and will not be returned. Consultants accept all risks of late delivery of mailed proposal regardless of fault. Costs for developing the proposal in response to the RFP are entirely the obligation of the Consultant.

To submit electronically register with Public Purchase and the City of Duvall at: https://www.publicpurchase.com/gems/register/vendor/register

RFP address for mailed deliveries:

Duvall City Hall, Attn. City Clerk Re: Proposal for Ten-Year Financial Plan PO Box 1300 Duvall, WA 98019

Services will be started not later than September 9, 2021 with a goal of draft scenarios by November 18, 2021 and substantial completion of the entire scope of work not later than December 14, 2021. (Feel free to propose an alternate timetable if unrealistic.)

Request for Proposal Information

RFP Title: Independent Financial Advisor to Note: This proposal is being published and widely Conduct A Ten-Year Financial Plan distributed to promote equitably distributing opportunities to work with the City of Duvall. Date Issued: August 5, 2021

Contact Persons: Ryan Cotton, Interim City Administrator & Dana Mason, Finance Director

Email addresses: [email protected]; [email protected]

Proposals Due: 11:00 AM, August 24, 2021

RFP SCHEDULE

Event Date (All times Pacific) RFP Release August 1, 2021 Pre-Proposal Conferences (optional) August 16 and 23, 8:30 AM remotely Email Re: Intent to Apply (desirable) August 16, 2021 Responses Due By Tuesday, August 24th, 11 AM Interview (depending on respondents) Monday, August 30th, 2 PM remotely Briefing to Finance & Adm. Committee (FAC) September 2nd at 3 PM Recommendation to Mayor and City Council September 3, 2021 Staff Briefing to City Council Committee of the Whole September 7, 2021 Approval September 8, 2021 Notice to Proceed & Start Date September 9, 2021 Kick-Off Meeting September 16, 2021, 1 PM, Remotely

The City wishes to negotiate a contract with a “not to exceed” dollar total based on your proposed scope of work which may model this RFP or be based on what you found works better elsewhere. The selected Consultant will be required to enter a professional services contract (Please submit your template).

Note: The City ‘s template will be forthcoming in the Pre-Proposal Conferences for your comparison purposes.

PURPOSE:

The City of Duvall is looking for a financial consultant to guide us through the development of a financial forecasting model to help us come up with a plan to achieve financial sustainability. It is hoped that by understanding Duvall’s revenues, expenditures, and trends better that we could monetize the major policy choice “levers” that would in turn enable policymakers to make choices that Duvall could update on our own in the future via a robust spreadsheet to be created. It is therefore hoped this independent analysis and forecast will provide recommendations to improve future forecast’s accuracy, depending on the assumptions and future policy choices.

The purpose of this Request for Proposal is to solicit competitive and best proposals from qualified forms for providing an Independent financial analysis of Duvall’s municipal health, financial planning scenarios, and financing options for the future (both potential scenarios and “levers”).

Upon review and evaluation, a recommendation will be submitted to the Mayor for award. The intent is to be forward thinking and to both exercise care with scarce resources, yet to also give the elected Mayor and Council Members knowledge about how to achieve the most with the resources that can be expected.

Approximately $30 million of capital projects are expected to be funded while still trying to accomplish the service demands with up to 11 more staff members (newly budgeted or soon to be budgeted-- four of which will be term limited) while planning on implementing results of a soon-to-be-completed Compensation Study. Multiple positions are expected to be recommended for pay increases to improve retention.

Please note that Duvall’s intent is to provide this opportunity to request yet neither the Mayor or the Council want to dictate the best outcomes – What follows only attempts to signal the desired outcomes yet we have deliberately tried to not be so specific that the Consultant would lose your flexibility. Duvall’s most important intent is to learn and benefit from the Consultant’s expertise. Please feel free to recommend something very different if this increased flexibility in outcomes means the Consultant can explore/recommend even better forecasting scenarios based on the Consultant’s professional experience.

Duvall’s bottom-line questions are whether the new staffing is sustainable, how to make the staffing sustainable if not, and how to fund the capital reinvestment needed?

The expected Ten-Year Financial Plan (the Plan) is thereby hoped to:

• Evaluate capital financing options for the City, including the use of bonding packages, applicable federal or state grants, regionalization, and other potential funding strategies.

It is further hoped that the City’s method for creating future biennial budgets will be informed by this Plan and that the ten-year plan will be updatable via plugging in more recent numbers into the spreadsheet (i.e. pulling levers) that will become the property of Duvall upon acceptance.

As a result, the City may move toward “budgeting by priorities” to provide a variety of services to a wider range of customers based on dynamic community priorities. “Budgeting by priorities (BP)” is based on the relationship between available funding and outcomes the community desires, increased transparency into how government policies translate into spending, and will focus more on the outcomes of a funded program, service or activity rather than just the inputs.

It is hoped that the resulting long-range financial strategy will become a framework the Mayor and Council Members of the City of Duvall can use to align financial capacity with long-term service objectives. It will encourage a deeper understanding of the City of Duvall’s service commitments and the City’s plan to meet those commitments in a sustainable and responsible manner.

BRIEF SCOPE OF SERVICES

Provide independent financial assessments, forecasting services, and up to six (6) scenarios. The Consultant will also be asked to recommend measures to increase clarity for the long-term financial decision-making by the City of Duvall, especially in the areas of new staffing, revenue planning and capital financing options.

Residential growth is creating the need to add staff and increase operating expenses. Duvall may be categorized as a “First-Class City” under Washington state law within the next decade with the resultant new potential financial expectations. Despite our healthy revenue and record residential growth, the revenue and service structures of nearly all Washington cities is unstainable in the long-term.

Although progress has been made over the last few years in tackling a backlog of capital improvement desires, additional funding will be required for building reinvestments, parks and related amenities, street reconstruction, major capital equipment, and other related projects.

The combination of Council and community desires, 11 additional operating staff (some newly budgeted, others planned), the need for capital reinvestment, fiscal uncertainty with sales tax continued growth, and changing utility taxpayers (fewer cable company customers, for example) and combined tax burdens, have led Council to conclude that the review and recommendations from a qualified Consultant will provide the best blueprint for helping the organization thrive over the next ten years, enhance education to the community should a bond issue arise, and provide assurance that certain policy choices are possible, or not possible, depending on a Financial Plan’s conclusions.

Complicating matters, the City of Duvall operates on a Cash Basis, so a true financial picture beyond a given budget is currently difficult to see. 5

Another intent of long-time financial Planning is to get both branches of government (Mayor and the City Council) moving in the same direction at the midway point of the 21/22 Biennium.

The results of this Plan will be combined with the results of three other plans that are already under contract: a capital facilities options, a plan for utility options, and a compensation study. The Consultant will have access to these outcomes and the resultant insight as they think holistically about an improved financial future, while minimizing the City’s financial risk.

Funding authorization to select a municipal Financial Consultant for a long-term financial resiliency plan was recommended and approved by the City Council in December 2020 ($20,000). The desired Plan will create strong policy and procedure recommendations for ensuring Duvall’s ability to maintain service levels in the long-term.

Note: If some of the goals cannot be achieved with the funds available, you are welcome to revise your proposal accordingly and advise how the City could streamline, modify, or otherwise phase the project for the best initial outcomes, as well as successive years of funding. To facilitate future funding choices, we labelled five of the City’s desires as “alternates” for individual pricing.

The Consultant that is awarded the contract will become the primary financial advisor to the City that Duvall will use to both illuminate the Amended 21/22 Biennium Budget now and to help transition Duvall’s finances into the next biannual budgeting processes in 2022 and beyond in the future.

SPECIFIC DESIRED GOALS OF THE INDEPENDENT FINANCIAL PLAN

Baseline Needs (Goals 1-5)

1. To achieve long-term fiscal stability by identifying Operating Structural Financial Forecasts and enabling the City to develop operating plans to overcome internally going forward (a comprehensive spreadsheet and “levers” to pull, for example).

2. To develop a Capital Funding Plan, inclusive of funding alternatives and strategies, for investing in critical Duvall public buildings: a combined city hall/police building; a combined public works/parks building; reconstruction of streets (exclusive of utility lines which is the subject of a separate report); and investing in major non-utility capital equipment.

See the Appendix for related documents. The financial plan results should recognize the need to stay within legal debt limits and normal ranges of reasonableness/acceptability in the Consultant’s experience. Such capital funding projections will also need to include a long-term reinvestment/depreciation funding, as well as annual operating costs for a Total Development Cost.

3. Develop a Benchmarking Table of at least ten comparative communities to provide economic context: Ensure that at least half of the municipalities are proximate and selected to compare population, land area, tax base, and proximity. This benchmarking table should include comparative data on key 6

revenue sources, tax rate, ability to pay measures, tax burden per capita, expenditures per capita, total debt ratio, debt per capita, and water and sewer utility rates, at a minimum, plus any other comparative data recommended by Consultant.

4. Develop an analysis of revenues, expenditures, fund balances/fund equity for the past decade to Identify Trends, particularly those that might suggest areas for revenue enhancement or spending reductions and ensure operating expenses are not relying on one-time revenues.

Note: The Consultant’s assumptions on these trends, and in the scenarios that follow, are highly desired given the concern that recent rapid sales tax growth is an unstainable phenomenon. Further, the City’s utility tax outcomes are the result of recent local policy decisions which might not be sustainable either.

5. Prepare Alternative Financial Plan Scenarios for Duvall (up to 6 like what is listed below or whatever the Consultant recommends). See below for possible titles. Please list all the assumptions used in addition to those provided.

Note: The Consultant is highly encouraged to develop your own scenarios based on your experience and templates that you feel might ultimately even more insightful:

Alternative Scenarios Desired Outcome Paired with Major Change/Assumptions

1. Baseline: No Create baseline projections This is a historical, projected Change Scenario out from 2021 for ten years, forward scenario yet should plus changes revenues and include parenthetical explanatory expenditures in a way that notes as to any state or local suggest likely outcomes if no policy changes that impacted the further state or local policy results in a major way that would changes occur. (Note: The relate to this trends predictability, city’s own water and sewer or lack thereof. This baseline rates is not included in this model would assume current requested analysis.) revenue sources and staffing levels (acknowledging that the police levy lid lift will expire yet assume renewal).

2. Recession: Cutback Baseline of 2021 plus This is also an historical look Scenario changes in revenues and projected forward yet would show expenditures for the prior how an economic downturn, Ten-Years, like 2001 to 2011 similar to the magnitude of the

and assume no Duvall Police last one, would change the City’s levy lift renewal in 2025 financial capabilities and also include the possibility that the Duvall Police levy lift would not be renewed under these dire economic circumstances.

3. Pre-Recession Look at the Budget pre-2008, Extrapolate salary growth to Scenario before the cutbacks, for both present the from pre-2008 levels, the number of positions and and add any extra positions the level of services. needed for future expanded service levels based on community desire and mandated services. See how this level of service would change the bottom lines over the next ten years. Assume the policy levy lift would be renewed. (See potential Authorized Strength Table in the documents listed in the Appendix).

4. Modest Growth Baseline growth in revenues Add changes to expenditures to Scenario and assumes levy lift include 5% wage growth in year renewals in 2025 one (or whatever the comp study recommends), the addition of new positions, and a 2.5% overall growth thereafter for Ten-Years (See potential Authorized Strength Table in the documents listed in the Appendix).

Note: Consultant is encouraged to propose different percentages based on their expertise or use a better template that they know is tried and true to accomplish a like outcome.

5. Optimistic Growth Baseline growth in revenues Add changes to expenditures to Scenario and assumes levy lift renewal include 10% wage growth in year in 2025 one and 4% overall growth

thereafter for Ten-Years as well as the potential new positions.

Note: Consultant is encouraged to propose different percentages based on their expertise or use a template that they know is tried and true to accomplish a like outcome.

6. Consultant’s Hybrid of the above and the Add changes to whatever revenue Recommendations, Consultant’s experience that and expenditures the Consultant complete with a is believed to be most suspects is most likely, along with Capital Finance realistic, with or without new Consultant’s estimates as to Strategy Paired with potential positions and with, expected wage growth for Ten- Consultant’s Best or without, plus a levy lift Years and/or the Consultant’s Idea on the Most renewal if deemed likely by choice of pre-existing templates. Realistic Scenario the Consultant. Should include the added financing/debt service for $30 million in new capital funding. Include the total life cycle/development cost estimate of maintaining and replacing this infrastructure plus customary operating cost assumptions per year.

Note: All assumptions to be made by Consultant based on expertise, templates, revenues, expenditures (both staff and capital) judged to be the most financially sustainable.

Note: The actual assumptions in each of these scenarios should be viewed as adjustable by the Consultant once they get immersed into the project and given their expertise.

o Alternate 1: Develop a robust and flexible spreadsheet that Duvall could use in pulling “levers” that represent possible changes to revenue and expenditures in the future – such as staffing level changes (adding or reducing staffing, services, and salary growth); taxation changes (such as property tax levies, sales tax, utility tax); changes in fees; cost containment strategies, etc. This tool will enable 9

the Council to explore the tolerance/impact of these “levers” as a community/council in subsequent budgets and possibly come up with a “preferred approach.” The City does not want to limit the “levers” by describing too specifically what each scenario would be, yet by creating a “menu of levers,” the City would be enabled to work with the consultant to determine a Financial Plan that is achievable and sustainable. This deliverable should also be provided in a format that could be updated by the Finance Department as a forecasting model on an ongoing basis. (Optional if budget permits. Possible future phase.)

o Alternate 2: Provide a table of recommendations for Future Fund Balance Reserves (23 funds). (Optional if budget permits. Possible future phase.)

o Alternate 3: Make a recommendation on whether, if, when, and how Duvall should transition to Modified Accrual or Accrual Basis of Fund Accounting Recommendation. (Optional if budget permits. Possible future phase.)

o Alternate 4: Prepare a brief report to the City regarding the General Feasibility of Issuing Bonds and Sufficiency of The City’s Expected Trendlines of Revenues. See existing debt repayment requirements in Appendix. (Optional if budget permits. Possible future phase.)

Note: It is the City’s understanding that the financial advisor is precluded from bond issuance services/participation in the underwriting as co- manager, syndicated member, selling group member, etc. for a period of time after submitting this independent report under state law.

Unlike many communities nationwide, the City’s pension is well funded so there is no need to aggressively address the pension unfunded actuarial liability.

SUBMITTAL REQUIREMENTS

See the form in the RESPONSE TEMPLATE COVER SHEET that follows or use your own format as long as the requested materials/explanation is included.

QUALIFICATIONS & EVALUATION CRITERIA

All proposals will be reviewed and screened by the Interim City Administrator and Director of Finance. The Finance and Administration Committee will be consulted. A formal recommendation will be made to the Mayor to enter into a contract.

Proposals will be evaluated by considering the following:

1. Firm/individual’s quality of experience and years of experience in public sector 2. Licensing (by Security and Exchange Commission (SEC) and/or other agencies and certifications) 3. Number of cities served in creating financial Plans (unrelated to bonding procedures) 4. Number of Washington cities served in creating financial Plans (unrelated to bonding) 10

5. Overall cost effectiveness of proposal, plus proposed contingency, and number of proposed meetings. The value expected which will be judged in comparison of the cost to the deliverables. 6. Overall perceived fit and strength of the approach 7. Hourly Rates 8. Proposed costs for extra meetings that might become necessary – both in person and virtual 9. Attributes that distinguish your firm from others 10. Pending investigations or disciplinary matters

A short-list of finalists will be invited for interviews, after which a recommendation will be made to the Mayor as the Chief Executive Officer.

NEGOTIAIONS & REJECTION OF PROPOSALS

The City reserves the right to reject any and all proposals of the consultant deemed to be the overall best qualified or to waive irregularities and informalities in the submittal and evaluation process or to negotiate expectations and options and supplementary information with the apparent best proposer to analyze the proposals. The City reserves the right to negotiate all elements of the submittals and terms and conditions and/or scope. All parties understand that if any adjustments are made a resulting change in price/cost may be necessary.

The Consultant, by submitting a response to this RFP, waives all right to protest or seek any legal remedies whatsoever regarding any aspect of this RFP. A response to this RFP does not obligate the City to pay any costs incurred by respondents and does not obligate the City to accept or contract for any expressed or implied services.

CONTRACT AWARD

Recommendation of the City Administrator with input of the Finance and Administration Committee to the Mayor as the Chief Executive Officer. The Mayor will have the authority to award a contract based on its determination as to which proposal is in the best interests of the City unless all qualified proposals exceed the budget in which case the City Council will be asked to consider a budget amendment.

EQUAL OPPORTUNITY

This proposal is being published and widely distributed to promote equitably distributing opportunities to work with the City of Duvall.

INSURANCE REQUIREMENTS

Please be prepared to a copy of the firm’s Certificate of Insurance naming the City as an Additional Insured should the proposal be accepted and a contract negotiated.

QUESTIONS

Questions may be directed to the Public Purchase site or to Interim City Administrator Ryan Cotton via email at [email protected]. Unauthorized contact with other employees or officials may result in disqualification. Any oral communications are considered unofficial and non-binding on the City. Any answers provided will be shared on the Public Purchase site. Respondents are advised to check this site prior to submittal to ensure your competitiveness.

DELIVERABLES

A digital file or one copy of the DRAFT Financial Plan analysis and will need to be provided not later than November 18th with a formal presentation to the City Council made no later than December 14th.

The above timetable is not intended to preclude the development of preliminary reports to be used in discussions with the Interim City Administrator, the Mayor, the Finance and Advisory Committee or the City Council as a whole prior to the development of final reports.

It is expected that the reports listed in the Scope of Services Section above will have been provided in a draft and final form and presented to the City Council before final payment is due. Progress payments will be made after partial invoices. The City reserves the right to withhold a reasonable percentage depending on final project completion.

COMPENSATION

The City and any individual/firm selected for these services will enter into a professional services agreement which will address compensation, number of meetings planned, the costs for extra meetings, and the terms for accessing contingency if needed. (If Consultant has a standard form that addresses these questions, please provide.)

The approved budget is $20,000. Please suggest options for reducing the scope based upon your recommendations for priorities if you cannot fulfill the Scope of Services for the funds available.

Future phases are intended, and are labelled Alternates, if each of the City’s goals cannot be reached with the current budget allocation. Your proposal for each Alternative is needed, however, since the City Council might ultimately like to choose different priorities that staff used in creating this RFP. 12

REFERENCES AND PRINCIPAL POINT OF CONTACT

Please include contact information for three (3) financial plan references, two of which are from Washington and the other one from the Pacific Northwest or nationwide.

Please provide a resume for the point of contact as well as the staff person who will do the bulk of the analysis (can be the same as the main point of contact).

At the City’s discretion, proposals submitted after the due date and time may be considered. Proposers accept all risks of late delivery of mailed proposals.

PRE-PROPOSAL CONFERENCES

Interested Consultants are invited to participate in one or two pre-proposal Microsoft Teams video or teleconferences for the purpose of clarifying any aspect of this Request For Proposal.

These check-in conferences will take place at two times: 8:30 AM Pacific Time on Monday, August 16th and 8:30 AM on Monday, August 23rd.

Please advise Ryan Cotton at [email protected] in advance to receive an invitation or call 425-439- 4355 at that time.

ADDENDA TO THE REQUEST FOR PROPOSALS

Additional information necessary to respond to this request for proposals may be obtained after the preproposal conferences by checking the Public Purchase web site or by emailing Interim City Administrator Ryan Cotton at [email protected].

Such additional information will be supplied in writing only, will be loaded on Public Purchase, and be emailed to all those Consultants whose representatives attended the pre-proposal conference.

If it is determined that Addenda to this request for proposals are required, those Addenda will be loaded on Public Purchase and emailed to all those Consultants whose representatives attended the preproposal conferences and will be considered a part of the original Request For Proposals.

RESPONSE TEMPLATE COVER SHEET

(Suggested but not required. Please be sure to include the following elements) Summary of Firm:

Address:

Firm/individual’s years of experience in public sector:

License/Credentials (by Security and Exchange Commission (SEC) and/or other agencies and certifications):

Number of cities served in creating financial Plans (unrelated to bonding procedures):

Number of Washington cities served in creating Financial Plans (unrelated to bonding):

Not-to Exceed Estimate for Major Needs (Defined as Goals 1 - 5):

Potential Contingency (not to exceed 10%):

Number of Proposed Meetings and Type:

Extra Costs for:

Alternate 1: Flexible Spreadsheet with “Levers” Alternate 2: Future Fund Balance Reserves Alternate 3: Comprehensive Taxpayer Impact Table Alternate 4: Modified Accrual or Accrual Basis of Fund Accounting Recommendation Alternate 5: General Feasibility of Issuing Bonds and Sufficiency of The City’s Expected Trendlines of Revenues Hourly Rates:

Proposed costs for extra meetings that might become necessary – both in person and virtual:

Attributes that distinguish your firm from others:

References:

Washington Financial Plan References and Contact Information (2 is sufficient):

Pacific Northwest or Nationwide Financial Plan References & Contact Information (1 is sufficient):

Location of the base office for the individuals who will be assigned to the City (if different than above):

Primary point of contact with the city under this contract (attach resume):

Second key professional who will be doing the bulk of the work (attach resume; can be the same as primary contact):

Pending investigation or disciplinary matter and/or resolved investigations in last five years (list all):

Note: Although the City wishes to negotiate a contract with a “not to exceed” dollar total based on the above defined scope of work, please feel free to propose what Consultant feels will be an improved outcome for both parties. The selected Consultant will be required to enter a professional services contract (Please submit your template). Other than the above contract template, please limit your response to five pages if possible.

APPENDIX 1 Potential Capital Plan Rough Interim City Administrator’s Ideas on Alternatives & Approximate Estimates*

Combined City Hall/Police Department

14,000 sf City Hall at $500/sf: $7,000,000 20,000 sf Police at $400/sf: $8,000,000

Combined Public Works Facility $8,000,000 Offices, Capital Projects, Supervisory, Foreman, Garage, Work Areas, Enclosed Vehicle Storage, Fleet Maintenance) 20,000 sf at $400/sf

New Parks & Amenities $2,000,000 New potential debt service (Not paid by Impact Fees)

Street Reconstruction Inventory $5,000,000

Water and Sewer Lines (Being addressed in a separate study. Rates TBD is separate study)

Working Total: $30,000,000 (approximate total)

*All numbers are approximate and depend on multiple factors to be determined.

This list is purely the product of the Interim City Administrator’s current assumptions about what will end up being realistic.

The actual capital project list will be eventually determined by the Mayor and City Council based on a Facility Plan Assessment currently underway.

Appendix II ADDITIONAL INFORMATION

The following information Is available and can be found on the City’s website now. See the City’s Document Center at https://www.duvallwa.gov/DocumentCenter/Index/551

• FY21/22 Biannual Budget • Comprehensive Annual Financial Report for the year ended December 31, 2020 • Pension Annual Actuarial Valuation as of December 31, 2019. • Organization chart • Ideal Authorized Strength (perceived) • City of Duvall, Fund Resources and Uses Arising from Cash Transactions For the Year Ended December 31, 2020 pdf • City of Duvall, Notes to the Financial Statements For the year ended December 31, 2020 Word • End of Fiscal Year Filings with the State of Washington. Will be provided • O:\Public Works\Road\Pavement preservation (overlay)

Version 1

INTERIM CITY ADMINISTRATOR

To: Mayor Amy Ockerlander Duvall City Council Members From: Ryan Cotton, Interim City Administrator Date: August 11, 2021 Subject: Personnel Manual Re-Write Request For Proposal, Calendar, and Budget

Summary The City Council discussed the long-term goal of updating Duvall’s personnel rules in the 21/22 Biennial Budget: “Continue internal human resources and general policy updates” (p. 37 of 2021/2022 Biennial Budget).

The overall intent was to update the policy language as well as to upgrade the city’s policies to reflect best practices, especially related to diversity and inclusion.

The key to realizing this objective is to re-write Chapter 4 – Personnel from the Duvall Municipal Code and to replace it with a comprehensive and up-to-date General Staff Personnel Policy Manual.

Doing a complete replacement with a consultant that does similar work elsewhere on a daily basis will enable the rules to be kept more current without the need for cumbersome re-drafting research in the future. Police and Fire agencies have used this type of system for decades across the country. The Duvall Police Department currently contracts with Lexipol for this type of service. The intent is to replicate these outcomes for the General Staff as well.

Summary of Scope of Services

Proposals are being solicited to accomplish the following:

• To enable the possible replacement of Chapter 4 of the Duvall Municipal Code with an updated General Staff Personnel Policy Manual • Institute an automatic electronic updating and notification process for all General Staff of changes – whether due to Federal and Washington State law or due to changing Chief Executive Officer changes to be implemented • Institute an automated electronic notification system • Include a training component into the notification system.

Once the City Council was happy with the potential replacement Manual and a legislative process to review future changes proposed by the selected provider, the City Council could repeal Chapter 4 of the Duvall Municipal Code in its entirety. The challenge is to find a provider that will also be flexible enough so Duvall could make amendments based on local conditions that might exceed federal or state requirements.

15535 Main Street NE · P.O. Box 1300 · Duvall, WA 98019 · 425.788.1185 · Fax 425.788.8097 www.duvallwa.gov More Background Information

Upon a budget amendment to accept the Mayor’s recommendation for a best-practices personnel policy provider, the consultant would:

1. Create a Draft General Staff Policy Manual

The intent is to provide a foundation for consistent, safe, legal, local government functions, to update old language and to lower liability and risk. Policies recommended should not only be based on federal laws and regulations but also incorporate nationwide best practices.

• Integrate pre-existing agency content into appropriate sections within the policy manual • Provide the ability for the City of Duvall to customize content to reflect Duvall’s organization and unique terminology and structure

2. Provide Regular Training Bulletins

Provide regular training bulletins to help personnel learn and apply Duvall’s policy content through short training exercises. It is expected that such training would include:

• Scenario-based training ties policy to real-world applications • Understanding and retention of policy content is improved via a singular focus on one distinct aspect of the policy • Concludes with a question that confirms the user understood the training objective • Enable completion via computers or from smartphones, tablets or other mobile devices • Be capable of providing reports to show completion by agency member and topic

3. Provide Policy Updates

Provide regular reviews of laws and regulations, court decisions and evolving best practices.

• Provide new and updated policies as needed to ensure the overall Manual’s policy content up to date, delivered through a web-based content delivery platform. • Changes should be presented in comparison against existing policy so Duvall’s officials and staff can easily identify modifications/improvements • Enable an ability to accept, reject or customize each update

4. Web-Based Delivery Platform and Mobile App (Knowledge Management System)

Provide secure storage and easy access to all your policy and training content

• Provide a mobile app to facilitate staff use of policies and training completion and enable in- the-field access to policy and training materials. • Provide an ability to edit and customize content to reflect Duvall’s mission and philosophy • Provide archival and easy retrieval of all versions of Duvall’s resultant policy manual 5. Reports

Provide a Knowledge Management System for intuitive reporting capabilities and easy-to-read reports that enhance staff meetings and strategic planning.

• Track and report when personnel have acknowledged policies and policy updates • Produce reports showing completion of Regular Training Bulletins • Be able to sort reports by staff member, topic and other subgroups to reduce the time your supervisors spend verifying policy acknowledgement and training completion

Note: The City Council did not provide a budget for this work, other than through hire of an Interim City Administrator and general City Attorney funding. The above scope exceeds what internal resources could accomplish, yet both the City Attorney and full-time City Administrator will still be integral in effectively achieving the Mayor and City Council’s satisfactory completion for Duvall.

RFP Schedule

Event Date (All times Pacific)

RFP Release July 31, 2021

Pre-Proposal Conferences (optional) August 10, 3 PM remotely

Email Re: Intent to Apply (desirable) August 13, 2021

Responses Due By Tuesday, August 17th, 11 AM Interview (depending on respondents) Monday, August 30th, 12 Noon remotely

Briefing to Finance & Adm. Committee (FAC) September 2nd at 3 PM

Recommendation to Mayor and City Council September 3, 2021

Staff Briefing to City Council Committee of September 7, 2021 the Whole

Approval September 8, 2021

Notice to Proceed & Start Date September 8, 2021

Kick-Off Meeting September 9, 2021, 12 Noon Remotely

Recommendation Answer questions to refine the intent as necessary and discuss budget flexibility.

Attachments Full RFP

General Staff Personnel Manual and On-Going Training and Updating Services

Request For Proposals

Due by August 17th by 11:00 AM on

Public Purchase

or to

Jodi Wycoff, City Clerk [email protected]

NOTICE & GENERAL INFORMATION

The City of Duvall is interested in contracting with a national or regional service to research, provide, and recommend General Staff Personnel Policies, complete with the capability of keeping up to date with federal and Washington State Law and sending revisions whenever necessary. Such revisions would ideally be shared with each applicable employee and include a training and acknowledgement component.

The City is using Public Purchase to post, respond to inquiries, and accept responses. To register with Public Purchase for free, go to the link provided at the link below and follow the registration instructions under the section titled “Register for Free.” (It can take up to 24 hours for an account to be activated, so make sure you register well ahead of the proposal deadline. Once you’ve registered, follow directions to register under the City of Duvall. This will allow you access to the request for proposal, the ability to ask questions and read answers to questions others have summitted, and the ability to submit your proposal electronically.) Electronic submittal is the preferred way of proposal delivery.

If you are unable to submit your proposal electronically, one copy of the proposal may be submitted to Duvall City Hall no later than the deadline listed above. All proposals must be sealed in an envelope and clearly marked “Proposal for Creation of a General Staff Personnel Manual.” All proposals and accompanying documentation will become the property of the City and will not be returned. Consultants accept all risks of late delivery of mailed proposal regardless of fault. Costs for developing the proposal in response to the RFP are entirely the obligation of the Consultant.

To submit electronically register with Public Purchase and the City of Duvall at: https://www.publicpurchase.com/gems/register/vendor/register

RFP address for mailed deliveries:

Duvall City Hall, Attn. City Clerk Re: Proposal for Creation of a General Staff Personnel Manual. PO Box 1300 Duvall, WA 98019

Services will be started not later than September 9, 2021 with a goal of DRAFT completion by October 31, 2021 and substantial completion of the entire scope of work not later than December 14, 2021. (Feel free to propose an alternate timetable if unrealistic or speed up this timetable if unnecessarily long.) 2

Request for Proposal Information

RFP Title: Proposal for Creation of a General Note: This proposal is being published and widely Staff Personnel Policy Manual distributed to promote equitably distributing opportunities to work with the City of Duvall. Date Issued: August 3, 2021

Contact Persons: Ryan Cotton, Interim City Administrator

Email addresses: [email protected];

Proposals Due: 11:00 AM, August 17, 2021

RFP SCHEDULE

Event Date (All times Pacific) RFP Release July 31, 2021 Pre-Proposal Conferences (optional) August 10, 3 PM remotely Email Re: Intent to Apply (desirable) August 13, 2021 Responses Due By Tuesday, August 17th, 11 AM Interview (depending on respondents) Monday, August 30th, 12 Noon remotely Briefing to Finance & Adm. Committee (FAC) September 2nd at 3 PM Recommendation to Mayor and City Council September 3, 2021 Staff Briefing to City Council Committee of the Whole September 7, 2021 Approval September 8, 2021 Notice to Proceed & Start Date September 8, 2021 Kick-Off Meeting September 9, 2021, 12 Noon Remotely

PURPOSE:

The City Council discussed the long-term goal of updating Duvall’s personnel rules in this biennium: “Continue internal human resources and general policy updates” (p. 37 of 2021/2022 Biennial Budget). The overall intent is to upgrade the city’s policies to reflect best practices, diversity, and inclusion.

The key to realizing this objective is to redact Chapter 4 – Personnel from the Duvall Municipal Code and to replace with a comprehensive and up-to-date Personnel Manual. Doing a complete replacement will enable the rules to be kept more current in the future without the need for cumbersome ordinance changes.

The purpose of this Request for Proposal is to solicit competitive and best proposals from qualified forms for providing a General Staff Personnel Policy Manual replacement.

BRIEF SCOPE OF SERVICES

Upon review and evaluation, a recommendation will be submitted to the Mayor for award. The intent is to: • Replace Chapter 4 of the Duvall Municipal Code with an updated General Staff Personnel Policy Manual • Institute an automatic electronic updating and notification process for all General Staff of changes – whether due to Federal and Washington State law or due to changing Chief Executive Officer changes to be implemented • Institute an automated electronic notification system • Include a training component into the notification system.

Police and Fire agencies have used this type of system for up to a decade across the Country. The intent is to replicate for General Staff as well.

Recommend a system that will enable the Chief Executive Officer of the City of Duvall to make amendments based on local conditions and/or based on equity, diversity, and inclusion goals that might exceed federal or state requirements.

Once in place, the City Council will repeal Chapter 4 of the Duvall Municipal Code in its entirety.

GOALS OF PROPOSAL TO CREATE AN ON-LINE PERSONNEL MANUAL

1. Create a General Staff Policy Manual

Create and recommend a legally defensible, up-to-date policy Manual for General City Employees to provide a foundation for consistent, safe, legal, local government functions and to lowering liability and risk. Policies recommended should not only be based on federal laws and regulations but also incorporate nationwide best practices.

2. Provide Regular Training Bulletins

Provide regular training bulletins to help personnel learn and apply Duvall’s policy content through short training exercises. It is expected that such training would include: • Scenario-based training ties policy to real-world applications • Understanding and retention of policy content is improved via a singular focus on one distinct aspect of the policy • Concludes with a question that confirms the user understood the training objective • Enable completion via computers or from smartphones, tablets or other mobile devices • Be capable of providing reports to show completion by agency member and topic

3. Provide Policy Updates

Provide regular reviews of laws and regulations, court decisions and evolving best practices.

4. Web-Based Delivery Platform and Mobile App (Knowledge Management System)

Provide secure storage and easy access to all your policy and training content

• Provide a mobile app to facilitate staff use of policies and training completion and enable in-the-field access to policy and training materials. • Provide an ability to edit and customize content to reflect Duvall’s mission and philosophy • Provide archival and easy retrieval of all versions of Duvall’s resultant policy manual 5. Reports

Provide a Knowledge Management System for intuitive reporting capabilities and easy-to-read reports that enhance staff meetings and strategic planning.

SUBMITTAL REQUIREMENTS

See the form in the Response Template below or use your own format as long as the stated materials/explanation is included.

QUALIFICATIONS & EVALUATION CRITERIA

All proposals will be reviewed and screened by the Interim City Administrator and Human Resources Committee. A formal recommendation will be made to the Mayor to enter into a contract.

Proposals will be evaluated by considering the following:

1. Firm/individual’s quality of experience and years of experience in public sector 2. Number of cities served 3. Number of Washington cities served 4. Overall cost effectiveness of proposal, plus proposed contingency, and number of proposed meetings. The value expected to be realized from the award of a contract which will be judged in comparison of the cost to the deliverables. 5. Overall perceived fit and strength of the approach 6. Hourly Rates 7. Proposed costs for extra meetings that might become necessary – both in person and virtual 8. Attributes that distinguish your firm from others 9. Pending investigations or disciplinary matters

A short-list of finalists will be invited for interviews, after which a recommendation will be made to the Mayor as the Chief Executive Officer.

NEGOTIAIONS & REJECTION OF PROPOSALS

The consultant, by submitting a response to this RFP, waives all right to protest or seek any legal remedies whatsoever regarding any aspect of this RFP. A response to this RFP does not obligate the City to pay any costs incurred by respondents and does not obligate the City to accept or contract for any expressed or implied services.

CONTRACT AWARD

Recommendation of the City Administrator with input of the Human Resources Committee to the Mayor as the Chief Executive Officer. The Mayor will have the authority to award a contract based on its determination as to which proposal is in the best interests of the City after the City Council amends the budget based on the best proposal.

EQUAL OPPORTUNITY

This proposal is being published and widely distributed to promote equitably distributing opportunities to work with the City of Duvall.

INSURANCE REQUIREMENTS

Please be prepared to a copy of the firm’s Certificate of Insurance naming the City as an Additional Insured should the proposal be accepted and a contract negotiated.

QUESTIONS

DELIVERABLES

A digital file or one copy of the DRAFT Financial Plan analysis and will need to be provided not later than November 1st with a presentation to the City Council and the final Personnel Manual provided no later than December 14th.

The above timetable is not intended to preclude the development of a preliminary Manual to be used in discussions with the Interim City Administrator, the Mayor or the City Council as a whole prior to the development of final Manual.

It is expected that the replacement Manual listed in the Scope of Services Section above will have been provided in a draft and final form and presented to the City Council before final payment is due. Progress payments will be made after partial invoices. The City reserves the right to withhold up to ten percent depending on final project completion.

COMPENSATION

The recommended budget to the City Council will not exceed $20,000. Please suggest options for reducing the scope based upon your recommendations for priorities if you cannot fulfill the Scope of Services for the funds available. Future phases could be proposed if not all the City’s goals could be reached with this tentative budget allocation.

REFERENCES AND PRINCIPAL POINT OF CONTACT

Please include contact information for three (3) professional references, one of which are from Washington and the other two from the Pacific Northwest or nationwide.

Please provide a resume for the point of contact as well as the staff person who will do the bulk of the policy work (can be the same Consultant).

At the City’s discretion, proposals submitted after the due date and time may be considered. Proposers accept all risks of late delivery of mailed proposals.

PRE-PROPOSAL CONFERENCE (S)

Interested Consultants are invited to participate in a Microsoft Teams video or teleconference for the purpose of clarifying any aspect of this Request For Proposal.

This check-in conferences will take place: 3:00 PM on Tuesday, August 10th.

Please advise Ryan Cotton at [email protected] in advance to receive an invitation or call 425-439- 4355 at that time.

ADDENDA TO THE REQUEST FOR PROPOSALS

Additional information necessary to respond to this request for proposals may be obtained after the preproposal conferences by checking Public Purchase or by emailing Interim City Administrator Ryan Cotton at [email protected].

Such additional information will be supplied in writing only, will be loaded on Public Purchase, and emailed to all those Consultants whose representatives attended the preproposal conference.

If it is determined that addenda to this request for proposals are required, those addenda will be loaded on Public Purchase and emailed to all those Consultants whose representatives attended the preproposal conferences and will be considered a part of the original Request For Proposals.

RESPONSE TEMPLATE COVER SHEET

(Suggested but not required. Please be sure to include the following elements)

Summary of Firm:

Address:

Firm/individual’s years of experience in public sector:

License/Credentials (if applicable):

Number of cities served in creating General Staff Personnel Manuals:

Number of Washington cities served in creating General Staff Personnel Manuals:

Not-to Exceed Estimate:

Extra Costs for updating periodically (expressed as an annual total):

Hourly Rates:

Proposed costs for extra meetings that might become necessary – both in person and virtual:

Attributes that distinguish your firm from others:

References:

Washington General Personnel Manual References and Contact Information (1 is sufficient):

Pacific Northwest or Nationwide General Personnel Manual References & Contact Information (2 is sufficient):

Location of the base office for the individuals who will be assigned to the City (if different than above):

Primary point of contact with the city under this contract (attach resume):

Second key professional who will be doing the bulk of the work (attach resume; can be the same as primary contact):

Pending investigation or disciplinary matter and/or resolved investigations in last five years (list all): Note: The City wishes to negotiate a contract with a “not to exceed” dollar total based on a clearly defined scope of work. The selected Consultant will be required to enter a professional services contract (Please submit your template). Other than the above contract, please limit response to five pages.

Appendix I ADDITIONAL INFORMATION

The following information will be provided to the successful bidder. Some of this can be found on the City’s website now; All of it will be loaded prior to the first pre-proposal conference. See https://www.duvallwa.gov/DocumentCenter/Index/551

• Chapter 4 of the Duvall Municipal Code Chapter 4, Personnel

• Organization chart City Org Chart • Ideal Authorized Strength: O:\Mayor & CA\Ryan Cotton_ICA\Financial Analysis RFQ\Authorized Strength 08.03.21.xlsx • Link to FY21/22 Biannual Budget

11 Version 1

INTERIM CITY ADMINISTRATOR

To: Mayor Amy Ockerlander Duvall City Council Members From: Ryan Cotton, Interim City Administrator Date: August 11, 2021 Subject: Retreat Plans: Save the Date of Friday, September 10th at 5:30 PM to 9 PM and Saturday, September 11th from approximately 9 AM to 12 Noon.

Background On April 20, 2021, the City Council had an initial discussion on a potential retreat suggested by Council member Shaffer. The original idea was to have a discussion on ARPA funding and visioning with just the City Council and the Mayor. As time passed, I began to view this Retreat as a good opportunity to discuss other pertinent matters such as Team building based of the Kolbe “Work Styles Assessment” and to discuss governance through a sneak peak of what the Ad Hoc Committee on Council Procedures is doing. These discussions will go a long way toward preparing for a good selection and enhanced team interactions for maximum opportunity for success with the new City Administrator. The time frame would bridge two days via a Friday night dinner and a Saturday morning breakfast. Logistics and Calendar Through discussions with the Mayor Pro Tem and Mayor, it has been suggested we use the customary conference facility in Bothell, we could begin at 5:30 PM on Friday afternoon September 10th for a brief dinner followed by the Kolbe Assessment Team discussions with the facilitators, start again at 9 AM on Saturday, September 11th at the Duvall Depot after the 9/11 Commemoration Ceremony, and conclude at noon on Saturday. Although Council member Brudnicki will be in New York City for her special recognition of the 9/11 families, she would like us to continue on those dates. She can Zoom in at the time that we review the City Council Procedures Manual draft revisions. Council member Brudnicki also suggested that you invite the two candidates who are running for her seat. Suggested Agenda Friday, 9/10 5:30 PM to 6:30 PM: Buffet Dinner with City Council, Mayor, Leadership Team, Kolbe Consultants, and Council Candidates (Patty Murray room at McMenamins*) 6:30 PM to 8:30 PM: Kolbe Work Styles Team Debriefing – Facilitated by Marina Baker and Clare Willson of riffcreativestudio.com, Vancouver, WA Note: you will each get a one-hour individual debriefing on your results from Clare Willson in advance of this day. * The food/beverage cost is $1,200. 8:30 PM to 9:00 PM: Wrap up and Agenda for Saturday morning

15535 Main Street NE · P.O. Box 1300 · Duvall, WA 98019 · 425.788.1185 · Fax 425.788.8097 www.duvallwa.gov Saturday, 9/11 8:30 AM to 9:00 AM: Continental Breakfast with City Council, Mayor, Interim City Administrator, City Clerk, & Council Candidates 9:00 AM to 10:00 AM: Visioning & ARPA Funding Brainstorming and Nominal Group Decision- Making/Ranking 10:00 AM to 11:00 AM: Sneak Preview of City Council Procedures Manual 11:00 AM to 12 Noon: Discussion and Introduction to Carver’s Model of Board Governance

Recommendation Discuss and agree on the agenda, dates, and invitations.

Attachments

1. Introduction to Carver’s Model of Board Governance, https://www.lirata.com/index.php/resources/21-governance/33-policy-governance-in-brief

AN INTRODUCTORY SEMINAR ON

JOHN CARVER'S POLICY GOVERNANCE® MODEL

A NEW STANDARD OF EXCELLENCE FOR GOVERNING BOARDS

This workshop is intended to change forever the way you see the governing board job and the board-management relationship.

Of all the elements in the management of enterprise, none is less studied and less developed than the governing board. Because governance has rarely been the subject of rational design, boards persistently fall into trivia, CEO-centrism, meddling in—or, conversely, rubber stamping—management’s work, and other failings. They do so even when composed of intelligent, experienced, caring members. In North America alone there are millions of governing boards (including nonprofit, corporate, and political, elected ones), each relying on the patchwork, inadequate job design we have all inherited.

The problem is chronic, pervasive, and longstanding. Public and nonprofit boards, frequently in the absence of a market judgment, fail to govern what results are worth what cost. Corporate boards are prone to over-identify with management, seeing themselves more as advisors than commanders, allow unconscionable executive compensation and questionable practices. Even as the practices of management have made great strides in sophistication, governance remains in sad disrepair. These conditions are true worldwide.

The message in today's workshop is not intended for boards in trouble, though they can benefit. It is intended for boards that simply want to reach for a new level of excellence. Our topic is not how your board can solve the problems which keep it from the ideal. It is the ideal itself that is flawed. No less than a true paradigm shift is required to set us on a more powerful, more sensible, more responsible track.

Today we will question many of your cherished beliefs about boards and chief executives. Financial oversight, committee work, policy making, planning, accountability, monitoring, board-staff relationships and other important aspects of organization will acquire refreshingly new meaning.

Consider this an adventure in exploring an old topic with new eyes. Welcome to Policy Governance®, a new design for accountable leadership of governing boards!

P.O. Box 13007, Atlanta, GA 30324-0007; Phone: 404-728-9444; Fax: 404-728-0060. Email Addresses: [email protected], [email protected] Website: www.CARVERGOVERNANCE.com

THE POLICY GOVERNANCE® MODEL 2

Policy Governance® is a conceptual model created by John Carver to enable strategic leadership by governing boards. It addresses board job design and the board-management partnership. The board governs on behalf of some identifiable "ownership," deciding the broad values that determine organizational results and behavior.

Written values and perspectives are called policies and occur in four categories: ENDS policies prescribe the outcomes that justify organizational existence. For nonprofits and governmental boards, these are in terms of what benefits will occur for which people at what cost. For equity corporations (for profit), these are in terms of shareholder value. EXECUTIVE LIMITATIONS policies describe the prudence and ethics boundaries on acceptable staff acts, practices and circumstances. GOVERNANCE PROCESS policies clarify the board's own job and rules, including how it connects to its ownership. BOARD-MANAGEMENT DELEGATION policies describe the empowerment and accountability linkage through the CEO. These policy categories embrace all proper board decisions.

Therefore, these categories cover all pronouncements the board legitimately makes. The CEO is empowered toward ENDS and within EXECUTIVE LIMITATIONS. This approach enables the board to stay out of internal operation, yet control outcomes and the bounds of acceptability. Budgeting, personnel, risk, compensation and all other practices are thus controllable with little board time and very brief documents. Monitoring of CEO performance using the criteria in these policies is the CEO's evaluation.

In Policy Governance® the board is proactive, explicit about its values and long range in the majority of its concerns. It avoids both meddling and rubber stamping. Board and CEO jobs do not become confused. Board committees stay out of staff work and, though staff views and knowledge are made known to the board. Due to clear roles, free communication among board and management is no problem. Board-management interactions can be enriching without leading to meddling or to loss of board prerogatives. Board agendas are usually shorter, the deliberation usually on long term ENDS with a mindset of strategic leadership.

John Carver's Policy Governance® model is fully explained in over 200 publications, notably in several Jossey-Bass (a Wiley company) titles by John Carver and/or Miriam Carver: a book, Boards That Make a Difference; a bimonthly "newsletter," Board Leadership; a set of monographs, The Carver Policy Governance Guide series; a book, Reinventing Your Board: A Step-by-Step Guide to Implementing Policy Governance; a book, John Carver on Board Leadership: Selected Writings from the Creator of the World’s Most Provocative and Systematic Governance Model; a book, Corporate Boards That Create Value: Governing Company Performance from the Boardroom (John Carver with Caroline Oliver); a book, The Board Member’s Playbook (Miriam Carver and Bill Charney). Additionally, a DVD sold by the International Policy Governance Association, The Policy Governance® Model: An Introduction by John and Miriam Carver.

A PERSONAL NOTE: Since 1976, the Policy Governance model has been intended to bring major transformation to governance theory and practice everywhere. Widespread availability of powerful, new concepts required by so ambitious a goal calls for many thousands of persons other than us to carry the message. You may use the concepts, principles, explanatory analogies, drafts and drawings in your own work for better governance. We ask only that you use them accurately--in a way consistent with the Policy Governance® model as a whole--and that you give proper attribution to the source.

ENDS - MEANS EXERCISE

One of the new board skills is the ability to distinguish between organizational ends and means. Before a board can deal with ends and means differently, however, it must be able to make the distinction. This exercise gives you experience in distinguishing organizational ends from means. Though this may seem cut-and-dried, in practice it requires a shift in board members’ mentality. Choose whether each of the following six issues is one of ends or means.

I. Comparable results for special IV. Should we insure office equipment needs children and children in the and furnishings at full replacement general population differ in cost per value or a lesser amount, say, 80 child. To what extent in our school percent? system should resources be diverted  ENDS  MEANS away from the normal student population in order to achieve more for disturbed children?  ENDS  MEANS V. Our global Ends policy calls for a community with vibrant employment greater than the state median. Within that broad mandate, what relative II. Will it be best (a) to pay higher emphasis should be put on adequate salaries for more skilled staff or (b) to job skills and diversified employment pay lower salaries for less skilled staff base? but have to invest more in staff  ENDS  MEANS development and training?  ENDS  MEANS

VI. Should idle funds be invested short-term in investments that are (a) III. A three percent cost-of-living high return but risky versus (b) lower adjustment has already been decided. return but less risky? Now the issue is whether to give  ENDS  MEANS raises to all staff or only those who have been employed most of the past year since they are the only ones whose initial salaries have "fallen behind" general cost increases. This exercise is intended to be used as part of a  ENDS  MEANS guided discussion, not as "stand-alone" instructive material.

THE BOARD’S ENDS CHALLENGE 4

Because it causes a noticeable withdrawal by the board from practices, methods, and conduct of staff, the Policy Governance approach to “means” may be its most striking feature. Board meetings become different, the board-management relationship changes, many board committees become unnecessary. But withdrawing from direct engagement in staff means only sets the stage for the board to undertake its own work uncluttered by staff work. For a disciplined board, the toughest challenge is not withdrawing from staff means, but defining ENDS.

Under the Policy Governance model, a board will spend most of its time gathering wisdom and information, debating points of view, and ultimately deciding upon ENDS. As simple as this might sound, it is vastly different from what boards traditionally do. Further, the nature of ENDS dialogue may prove quite difficult. ENDS dialogue is never about what the organization will do, but what will be the results of its doing. ENDS dialogue is never about “us,” but about “them”—that is, what difference the organization will make. Notice that design of services, programs, or curricula is a means issue, not ENDS. Even the common term mission—which Policy Governance avoids—is normally written in terms of what an organization will be engaged in rather than the difference it will make. Consequently, focusing on—or, better still, obsessing about—ENDS is as difficult for a board to achieve as it is straightforward to conceptualize.

Below are some broad, global-level ENDS statements (with worth components omitted for brevity) that might have been developed by several types of organizations. These are not intended to be the most appropriate for all such organizations, just model-consistent illustrations. After each are a few further questions that a board might choose to pursue in order to give further definition to the ENDS desired:

PUBLIC SCHOOL SYSTEM: Developing young people have the capability to achieve age- appropriate success for a tax rate comparable to other districts.

Which young adults? What priority relationship between gifted and other children? How young? Capable, meaning what? Which young people? What does success mean in various age groups? How much expenditure is each output worth?

COMMUNITY COLLEGE: High school graduates in our county have the capability to enter or advance in gainful employment or institutions of higher education for a state-of-the-art cost.

All high school graduates, or those above some grade point average? “In our county” means legally resident or transient? What kinds of entry employment? Advance to what level? Any institute of higher education, even the most prestigious? How much expenditure is each output worth?

FAMILY SERVICE AGENCY: Functional families for a cost comparable to other similar agencies.

What constitutes functional? What dysfunctions will be targeted as priorities? Is this for highly dysfunctional families or just moderately dysfunctional ones? What constitutes a

family? How much expenditure is each output worth? 5

PUBLICLY LISTED EQUITY CORPORATION: Economic benefit to shareholders.

What nature and how much of economic benefits? Compounded growth in annual earnings per share? Share price? Compared with other companies in same industry? Of same risk characteristics? Adjusted by years in which market share is growing?

TRADE ASSOCIATION: Conditions favorable for members’ conduct of business for dues comparable to other trade associations.

What sorts of conditions (member skills vs. economic environment)? Which aspects of member abilities or of environmental conditions (for skills, office operation, investments, personnel)? Conduct of all parts of the business or selected parts? Which members (struggling, successful, urban, new)? How much expenditure is each output worth?

CITY GOVERNMENT: A safe and pleasant environment for living and commerce for a tax rate no greater for other cities our size in the state.

Safety from what (fire, toxic waste, burglary, bad water, flooding)? How safe? Pleasant in what ways (trash removal, clean streets, tree-lined avenues)? All aspects of living or selected ones (enjoyment of the outdoors)? Any kind of commerce (odiferous, vulnerable to economic cycles)? How much taxation is each city output worth?

COMMUNITY HOSPITAL: Relief from or arrested development of trauma and illness at a cost no greater than the median for the province.

Which traumas (burns, head injuries, psychiatric)? Which illnesses or conditions (severity, type, acuity, chronicity, emergency)? Which patients (age, gender, financial means)? How much is each output worth?

Difficult as is the process itself and the board discipline necessary to persevere in it, the idea is simple: the board’s job is to define what effects, for whom, at what worth are sufficient to justify the organization’s existence. In short, what is the organization for (rather than what does it do)? What is its “swap” with the world (resources consumed vs. human benefits created)? Notice that the ENDS concept is not just about results, otherwise there would be no need for the term ENDS to begin with. The concept describes (a) specifically the results that justify organizational existence (rather than internal results like, for example, financial soundness or achieving a competent workforce) and (b) the recipients of those results, and (c) the cost or priority (both are measures of worth) of those results.

So in each case, the ENDS work of the board is to determine not only what the broadest ENDS policy should actually be, but to further define it. The board task is not to work out how to achieve the desired ENDS, for those are means left to the CEO and staff. Defining and further defining the results, the recipients, and the worth continues to the point where the board is willing to allow the CEO to use any reasonable interpretation of the board’s words that he or she chooses. CEO evaluation is about attainment of these ENDS and avoidance of the unacceptable means that the board has defined in its EXECUTIVE LIMITATIONS policies.

DEVELOPMENT OF ENDS POLICIES 6

Ends policies begin with a statement broad enough to cover at a broad level, the difference the organization is to make, i.e. what results, for whom, at what cost. This pronouncement is tantamount to a mission statement, shown here as the preamble sentence in Policy 1.0. The CEO is bound by these words, but is authorized to use any reasonable interpretation of them he or she chooses. If that leaves the matter open to too much interpretation in the board's opinion, then further narrowing of the latitude left to the CEO can be accomplished, such as shown in numbered points 1 - 4 of Policy 1.0.

BOARD POLICY 1.0

The purpose of Hope Cancer Fund is, sufficient to The expansions in Board Policy 1.0 may still not justify resources used, knowledge for the radical narrow the desired outcomes enough, so the board reduction of death by cancer. might adopt further language. Expansions of sections 1 and 2 of the first policy are shown below. 1. The highest priority result will be basic area They, too, still leave a range of interpretation to the knowledge of the chemical, molecular, and. CEO, but it is a considerably narrower range. Some cellular biology of cancer. boards might even go into greater detail than that shown here. 2. The second highest result area will be methods to make laboratory findings clinically applicable to treatment and prevention.

3. Delivery technology will be capable of mitigating social, psychological, and economic effects of cancer patients and their families, though at the expenditure of no more than 10% of resources.

4. Lifestyle behaviors will be consistent with the prevention of cancer. BOARD POLICY 1.1

BOARD POLICY 1.2 There will be a basic knowledge of the chemical, molecular, and cellular biology of cancer. The second highest result area will be methods to make laboratory findings clinically applicable to 1. Understanding why normal cells become treatment and prevention. cancerous --- the priority result before 1999

1. Effective clinical protocols for chemotherapy 2. Understanding causes of growth and spread

2. Effective clinical protocols for radiation --- 3. Identification of factors that increase risk --- no major emphasis more than 5% of resources

3. Effective clinical protocols for hypothermia 4. Discovery of genes that can prevent cancer --- the priority result during the years after 1999

A great deal more specificity will be given to these matters by managers and, in the example shown here, researchers. But that detail need not concern the board except insofar as it can be demonstrated to be a reasonable interpretation of the language used by the board in its policies. It is likely that these policies will be given annual scrutiny and re-exploration. Hope Cancer Fund is in the business of producing knowledge for clinical practitioners, other researchers, health educators, and the general public. In using these policy examples, there is no contention that the stated outputs are the most reasonable ones to choose, or even that the level of policy depth is appropriate. Each board must decide for itself. If the policy detail goes beyond what the board members understand, it is certain that an appropriate level of policy de-tail has been exceeded.

DEVELOPMENT OF EXECUTIVE LIMITATIONS POLICIES 7

Executive limitations begin with a prohibition broad enough to cover all possible circumstances and activities the board would find unacceptable, such as is done in the preamble statement in Policy 4.0. The CEO is confined by these words, but is authorized to use any reasonable interpretation of them he or she chooses. If that leaves the matter open to too much interpretation in the board's opinion, then further narrowing of the latitude left to the CEO can be accomplished, such as shown in numbered points 1 - 6 of Policy 4.0.

BOARD POLICY 4.0

The CEO will not cause or allow any practice, organizational circumstance, activity, or decision that If expansions 1-6 in Policy 4.0 still do not is either imprudent, illegal, or in violation of narrow the proscriptions sufficiently in the commonly accepted business or professional ethics. board's opinion, the board can adopt further language. Because these expansions are 1. Paid staff and volunteers will not be subjected to specific to certain topics (e.g. financial condition, unfair, undignified, or unsafe treatment or asset protection), they might best be dealt with in conditions. added pages of policy, such as shown in Policies 4.3 and 4.4. They, too, leave a range of interpre- 2. Budgeting any fiscal year (or remaining part) will tation to the CEO, but it is a considerably nar- not deviate materially from board ENDS policies, rower range. Some boards might go into even risk fiscal jeopardy, or fail to be derived from a more detail than that shown here. multiyear plan.

3. Assets may not be inadequately maintained, unnecessarily risked, or unprotected.

4. Actual financial conditions and performance will not incur jeopardy or compromise the board's ENDS priorities.

5. Staff compensation and benefits will not deviate materially from market. BOARD POLICY 4.3

6. Board information will have no significant gaps in Assets may not be inadequately maintained, un- timeliness, accuracy, or completeness. necessarily risked, or unprotected. Accordingly, the CEO shall not: BOARD POLICY 4.4 1. Allow the organization to be inadequately Actual financial conditions and performance will insured against theft and casualty losses; and not incur jeopardy or compromise the board's the staff, organization and board members ENDS priorities. Accordingly, the CEO shall not: against liability losses.

1. Expend more funds than have been received in 2. Unnecessarily expose the organization, staff or the fiscal year to date. board members to claims of liability.

2. Incur debt beyond normal accounts payable in 3. Allow unbonded persons access to material amounts that cannot be repaid within 60 days. amounts of funds.

3. Conduct interfund shifting in amounts that 4. Receive, process, or disburse funds with con- cannot be restored within 30 days. trols insufficient to meet the standards of the board-appointed auditor. 4. Allow payroll and debts to be settled in an untimely manner. 5. Invest or hold operating capital in insecure in- struments, including bonds of less than AA 5. Allow tax payments or other government rating and uninsured checking accounts, or in ordered payments or filings to be overdue or non-interest bearing accounts, except where inaccurately filed. necessary to facilitate ease in operations.

BOARD POLICY 2.0

The role of the board, on behalf of the citizens of Governance Process policies, as all others, begin Jefferson, is to assure that Employment Counseling with the broadest statement on the topic. This largest Service (a) accomplishes what it should, and (b) statement is shown here as a preamble that is further avoids unacceptable activities and conditions. defined by sections 1 - 7. Unless further defined, as illustrated in policies 2.4 and 2.6 below, the board 1. The board will engage in structured contact with chairperson is authorized to use any reasonable citizens of Jefferson to represent their diversity. interpretation of the board's words. Given the expansion of detail in policies 2.4 and 2.6, the board 2. The board will define in ends policies what is to chairperson is confined to any reasonable be accomplished in terms of benefits, recipients, interpretation of these more specific policies. and their relative priorities. It will define in executive limitations policies those activities and conditions it considers unacceptable. The board will delegate performance on these matters to a CEO. BOARD POLICY 2.4 3. The board will carry out its job with discipline, emphasizing strategic rather than short-term The chairperson is charged to make decisions issues, policy rather than single events, and on issues of Governance Process and Board-Staff group rather than individual decisions. Linkage within board policies.

4. The chairperson is charged to make decisions 1. The purpose of the job is to see that the board on issues of Governance Process and Board- behaves consistently with its rules and those Staff Linkage within board policies. imposed upon it from outside.

5. Conduct of board members will be consistent A. Meeting content will only be issues which with their fiduciary responsibility and with the clearly belong to the board to decide, not discipline adopted by the board. the CEO.

B. Deliberation will be fair and open, but also 6. If board committees are necessary, they will efficient, timely, and orderly. assist in the board's job only, never interfere in the direct link between the board and CEO, 2. The chairperson is authorized to use any and never fragment the wholeness of the reasonable interpretation of the provisions in board's job. Governance Process and Board-CEO Linkage policies, except where the board specifically 7. The annual cycle of the board will conclude with delegates portions of this authority to others. re-established ends policies just prior to CEO construction of a new year's plan and budget.

BOARD POLICY 2.6

If board committees are necessary, they will assist in the board's job only, never interfere in the direct link between the board and CEO, and never fragment the wholeness of the board's job.

1. Board committees are to help the board do its job - not to help the staff - ordinarily by preparing policy alternatives and implications for board deliberation. Board committees will not advise staff.

2. Board committees may not speak or act for the board except when formally given such authority for specific and time-limited purposes. Authority will not conflict with authority delegated to the CEO.

3. Board committees cannot exercise authority over staff.

4. Board committees are to avoid over-identification with organizational parts rather than the whole. A committee which has helped create policy on a topic will not monitor performance on that topic.

DEVELOPMENT OF BOARD–MANAGEMENT DELEGATION POLICIES 9

BOARD POLICY 3.0 Board-Management Delegation policies, as all others, The board will link governance and management begin with the broadest statement on the topic. This lar- functions through a single chief executive officer, titled gest statement is shown here as a preamble that is Executive Director. further defined by sections 1 - 4. Unless further defined (as illustrated in Policies 3.1 and 3.3), the 1. All board authority delegated to staff is delegated board chairperson is authorized to use any reason- through the CEO, so that all authority and able interpretation of the board's words. Given the accountability of staff - as far as the board is expansion of detail in Policies 3.1 and 3.3, the board concerned - is considered to be the authority and chairperson is confined to any reasonable interpre- accountability of the CEO. tation of these more specific policies.

2. The CEO is accountable to the board for achievement of provisions of the board's Ends policies and avoidance of provisions of the board's Executive Limitations policies. BOARD POLICY 3.1

3. Monitoring data - those that disclose the degree All board authority delegated to staff is organizational performance upon Ends policies delegated through the CEO, so that all and Executive Limitations policies - will be authority and accountability of staff - as far as systematically gathered by the board and the board is concerned - is considered to be considered to be the only evaluation of CEO the authority and accountability of the CEO. performance. 1. The board will direct the CEO to achieve 4. Individual board members may have whatever specified results, for specified recipients, relationship with the CEO or staff members that is at a specified worth through the acceptable to the CEO, except that they can never establishment of Ends policies. The carry the instructive authority of the board, nor can board will limit the latitude the CEO may they waive requirements set out by the board. exercise in practices, methods, conduct and other "means" to the Ends through BOARD POLICY 3.3 establishment of Executive Limitations policies. Monitoring data - those that disclose the degree of organizational performance upon Ends policies and 2. As long as the CEO uses any reasonable interpre- Executive Limitations policies - will be systematically tation of Ends and Executive Limitations policies gathered by the board and considered to be the only there is authorization to establish all further evaluation of CEO performance. policies, make all decisions, take all actions, establish all practices and develop all activities. 1. A given policy may be monitored in one or more of three ways: (a) Internal report: Disclosure of com- 3. The board may change its Ends and Executive pliance information to the board from the CEO, Limitations policies, thereby shifting the boun- (b) External report: Discovery of compliance infor- dary between board and CEO domains. But so mation by a disinterested, external auditor or in- long as any particular delegation is in place, the spector selected by and reporting to the board, board and its members will respect and support (c) Direct Inspection: Discovery of compliance in- the CEO's choices. This does not prevent the board formation by the board as a whole, or by a board from obtaining information in the delegated areas. member or committee if duly assigned. 4. Only decisions of the board acting as a body are 2. Any policy can be monitored by any method at any binding upon the CEO: (a) Decisions or instruc- time the board chooses. For regular monitoring, tions of individual board members, officers, or however, each Ends and Executive Limitations committees are not binding, except in rare in- policy will be classified by the board according to stances where specific authorization is given by frequency and method: (a) Quarterly Internal re- the board, (b) In the case of board members or ports for Policies 4.3, 4.4, 4.7, and 4.8, (b) Annual committees requesting information or assistance External reports for Policies 4.4, 4.9, 1.1, 1.3, and without board authorization, the CEO can refuse 1.4, (c) Semiannual Direct Inspection for Policy 4.10. such requests that require - in the CEO's judgment - a material amount of staff time, or 3. Each September the board will formally evaluate funds, or is disruptive. the CEO, considering only these monitoring data.

10 PUBLISHED MATERIALS ON POLICY GOVERNANCE®

There are more than 200 publications by John Carver and Miriam Carver on management and governance. Article- length items have appeared in a wide array of publications including the (London) Times Educational Supplement, Association Management, Leader-to-Leader, Nonprofit World, Health Management Quarterly, Hospital Trustee, National School Board Journal, Public Management Review, Economic Development Review, Chronicle of Philanthropy, and Nonprofit Management & Leadership. Here are the book-length, monographs, and electronic products, including other authors where their publications are model-consistent:

Boards That Make a Difference: A New Design for Leadership in Nonprofit and Public Organizations (Jossey-Bass, 1990; 3rd edition, 2006). By John Carver.

A New Vision for Board Leadership: Governing the Community College (ACCT, 1994). By John Carver and Miriam Mayhew (now Miriam Carver).

The Policy Governance® Model: An Introduction by John and Miriam Carver. DVD featuring John and Miriam Carver. Ogdensburg, NY: International Policy Governance Association, 2008.

Board Leadership: Policy Governance in Action. (Jossey-Bass, 1992 through present). Executive editors John Carver and Miriam Carver. Periodical for the governance dialogue.

School Board Leadership 2000. By Gene Royer (Brockton Publishing, 1995).

The Carver Policy Governance Guide Series. By John Carver and Miriam Mayhew Carver (Jossey-Bass, 2009). Monographs on fiscal oversight, board responsibilities, board meetings, and other specific governance topics.

Reinventing Your Board: A Step-by-Step Guide to Implementing Policy Governance. By John Carver and Miriam Mayhew Carver (Jossey-Bass, 1997; 2nd edition, 2006).

The Policy Governance Fieldbook: Practical Lessons, Tips, and Tools from the Experiences of Real-World Boards. By Caroline Oliver (Gen. Editor) and others (Jossey-Bass, 1999).

John Carver on Board Leadership: Selected Writings from the Creator of the World’s Most Provocative and Systematic Governance Model (Jossey-Bass, 2001). By John Carver.

Corporate Boards That Create Value: Governing Company Performance from the Boardroom. By John Carver with Caroline Oliver (Jossey-Bass, 2002).

The Board Member’s Playbook: Using Policy Governance to Solve Problems, Make Decisions, and Build a Stronger Board. By Miriam Carver and Bill Charney (Jossey-Bass, 2004).

SOURCES REFERRED TO ABOVE

Gene Royer, ph. 281-495-7009, website: www.generoyer.com.

International Policy Governance Association, Attn: Sharon Boesen, 207 Constitution Avenue NE, Washington, DC 20002; website http://www.policygovernanceassociation.org.

Jossey-Bass: In USA and Canada: 989 Market Street, San Francisco 94103-1741 (415-433-1767). In Europe, Middle East, Africa, Japan: John Wiley & Sons, Ltd., Distribution Centre, Southern Cross Trading Estate, 1 Oldlands Way, Bognor Regis, Sussex, England P022 NSA (44-1243-779-777); Email: [email protected]. In Australia and New Zealand: Jacaranda Wiley Ltd., P.O. Box 1226, Milton, Queensland, Australia 4064 (61-7385-99755); Email: [email protected]. Asia Pacific (except Japan): John Wiley & Sons Asia, PTE Ltd., 2 Clementi Loop, #02- 01, Singapore 129809 (65-460-4280); Email: [email protected]. Latin America: Use the US address.

INTERIM CITY ADMINISTRATOR Version 1

To: Mayor Amy Ockerlander Duvall City Council Members From: Ryan Cotton Interim City Administrator Date: August 11, 2021 Subject: Status Report on City Administrator Recruitment and Selection Process

Background

The City Council budgeted for a full-time City Administrator in the 21/20 Biennium Budget. The Duvall Municipal Code was amended and a salary survey review resulted in a new pay range at the July 20th City Council meeting.

Advertisements were posted nationwide and with the AWC later that week with a deadline of August 24th. Twenty-two (22) applications have been submitted to-date. Dozens of individual email contacts are being made in advance of the deadline. A total of 30 or 35 applications are expected.

Selection Process

Special City Council meetings are needed as follows:

1. Executive Session on Tuesday, September 7th to review a short-list of candidates (confidentiality is requested by the candidates for this step). This short-list will be determined after preliminary social media, references, and other checks by City staff.

2. Second Interviews at a Special City Council meeting on Monday, September 20th at 4:00 PM.

In advance of this meeting, an opportunity for key staff to have coffee with the individual candidates and a tour will be scheduled.

A review of each finalists Kolbe Right Fit Assessment will be held at 4 PM, followed by sandwiches, and interviews starting at 5:30 PM to 10:00 PM. The two Council candidates will be invited.

Mayor Ockerlander will follow up with any additional candidate information needed/reference checks and will make a conditional offer later that week.

3. Special Meeting to Approve an Employment Agreement. This meeting will be preceded by an Executive Session on Tuesday, September 27th at 5:30 PM.

Before and in-between the above Council meetings the following reviews will occur:

1. First reviews of candidate materials: Interim City Administrator, Deputy City Administrator/Community Development Director, Council Member Rick Shaffer (invited), Mayor between August 24th and August 31st

2. First Interviews with an Ad Hoc Review Committee (Preliminary Interviews of 8 to 10 Candidates): Interim City Administrator, Mayor Pro Tem (invited), Council Member Brudnicki (invited), and the Mayor Tuesday, September 14th at 5:00 PM.

3. Detailed Reference Checks/Google Checks/Social Media Checks/Background Checks: The Interim City Administrator and City Clerk staff, plus an outside firm, will be used to conduct a variety of due diligence steps throughout the process.

Recommendation

Save the dates above. The Mayor and City Clerk will subsequently schedule the Special Meetings above.

Attachments

1. Recruitment Brochure (feel free to forward to potential applicants you may know) 2. Recruitment Reverse Chronology 3. Fringe Benefit List Used 4. Job Description

City of Duvall Administrator Recruitment (Involve Candidate(s) for Sept. 9 - Sept. 28th) Reverse Calendar (Read from the bottom up; VERY IMPORTANT COUNCIL STEPS ARE IN RED)

2021 Dates Action Notes December ICA Weekly Check-ins for On-boarding Conclusion NC unless signficant November ICA Weekly Check-ins for On-boarding Conclusion NC unless signficant Nov. 1st ICA to depart at end of week after several days of file orientation ICA last day Nov. 4th Nov. 1st City Administrator to Start in Earnest with initiation of a New Strategic Planning Process First Week In Office RE Key Documentation Provided/Reviewed with Mayor & ICA Oct. 18th A.B. City Council approval of Strategic Planning Process Oct. 19th CC Meeting Oct. 11th Establish Robust On-Boarding/Orientation Process Mayor & ICA Oct. 11th Mayor and CC Determine CA Objectives, Confirm Operating Practice Changes Special Meeting Oct. 11th Elected Official Orientation and Council Governance Addtl. Training ICA or outside trainer/facilitator to conduct Oct. 4th Verifications: Two previous employers, MV, Educational, Credit, Legal, /Drug, Physical, Others Police Department and Staff Assistance Oct. 4th A.B. First Touch on Strategic Planning process approval Oct. 5th CC Meeting Sept. 28th Tuesday Special Meeting and AB on CA Employment Agreement Review/Offer/Approval subject to background checks Sept. 28th Tuesday Special Ex. Session in advance of Special Meeting and AB on CA Employment Agreement Review/Approval Sept. 21st COW review of a Strategic Planning process once new CA begins If reviewed favorably, contract secured Sept. 21t Mayoral Announcement on Conditional Offer to new City Administrator Sept. 20th Monday Special Meeting Second Interview After Tours and Meet and Greets Special Meeting: Candidates invited Sept. 20th Monday Special Meeting Receipt of Work Styles Assessment Results from Riff Creative on Rigth Fit AssessmentQuote will be forthcoming; Approx. $2,000 Sept. 20th Tours, Simulation, Community/Staff Meet/Greet With Any New Council members included Sep. 9th City Attorney/ICA and Required Annual Training on Anti-Discrimination Law/Hiring Practices Required per the Personnel Rules annually Sept. 9th Complete Electronic Work/Teamwork Styles Assessment After Election using the Kolbe Process Sept 9th Ad Hoc Council Committee First Interviews: Remote Closed Session 09/14 Sept. 7th Ex. Sesssion Presentation of Candidates to City Council Closed Session 09/07 Aug. 30th Delivery of Confidential Candidate Information/ICA Assessment to Mayor and Council: Decide who to intervieTarget Sept. 3rd with Staff Assistance Aug. 27th ICA/Mayor Google Meet Interviews/Recorded Mayor & ICA Aug. 27th First Reference Checks Staff assistance Aug. 27th Social Media Checks Staff assistance Aug. 27th Google Checks Staff assistance Aug. 24th First Review of Applications Ryan/Lara?/Mayor? Aug. 17th Go/No Go Decision for More Advertising Mayor/Council/ICA July 26th Organization and Council training and governance (or whenever Retreat happens) ICA or consultant trainer July 19th A.B. City Council Approval of DMC Amendments July 20 th CC Meeting July 19th Email to City Council for Feedback of Recruitment Brochure and Advertisement July 20 th CC Meeting July 12th Recruitment via AWC, networking, social media, advertising, targeted emails, $3,000 Inclusive of Duvall Newsletter, Free sites, School alumni sources July 12th Place ads $1,500 using national network assistance July 5th A.B. City Council review of DMC Amendments Use another CA City in WA as the model or combine July 5th A.B. Mayors Recommendation/City Council Authorization to Formally Initiate Recruitment/Salary Range July 6th Meeting; Including Salary Range, Job Description, Traits/Skills, Mgt. Challenges July 5th Stakeholder surveyis/interviews ICA June 14th Mini Salary Survey ICA and regional resources June 14th COW Review of Draft DMC and Job Description Concepts July 6th Council Meeting June 14th COW Mayor's Recommendation and City Council Review of Job Description edits/DMC edits June 15th Council Meeting June 14th Job Description Edits and Mayor, Legal, and Leadership Team's Approval Per Mayor, State Law, City Attorney, & Best Practices June 7th Start Recruitment Process in Earnest --Council interviews on skills and traits 5 to 10 hours/week on recruitment steps May 31st Mayor and Leadership Team Review of Recruitment Calendar & Budget June 1st Council approved for ICA to go to 25 hours/week

CITY OF DUVALL WASHINGTON

CITY ADMINISTRATOR

APPLY BY: AUGUST 24, 2021

www.duvallwa.gov

The City of Duvall, WA (8,090 pop.) is seeking a seasoned City Administrator. Duvall is a quaint, historic, and growing community 25 miles northeast of Seattle in thriving King County. The City is well situated with excellent access to major transportation routes, tech employers, and the best of the Pacific Northwest. The City of Duvall is surrounded by stunning vistas of the Snoqualmie Valley and the Cascade Mountains. Multiple outdoor activities include hiking, mountain and road biking, fishing, tubing, kayaking, skiing and golf-- all within minutes.

Duvall is a full-service, vital City with a traditional human-scale Downtown that welcomes families wanting to put down roots and enjoy small town living. Although Duvall honors its rural heritage and charm, its residents are on the cutting edge of technology, innovation, and sustainability. Duvall’s residents are diverse and take pride in their community and are active participants in improving the area.

THE COMMUNITY Situated in western Washington between Seattle and the foothills of the Cascade Mountains on the Snoqualmie River, the City of Duvall’s residents enjoy incredible recreation opportunities. The area boasts beautiful City, county, and state parks/beaches and miles of trails. Stevens and Snoqualmie Pass are just an hour away and provide ski runs, terrain parks, and a summer mountain bike park. The City’s vibrant Old Town overlooks the Snoqualmie River and valley. The City is fast becoming a favorite residential community for both commuters and for those who choose to conduct business in a small-town setting. New businesses and the entrepreneurial spirit are encouraged, providing residents unique local services and products. Residential growth topped 23% over the last decade. Residents gather year-round to enjoy the arts, music, and other community events.

Duvall remains one the safest communities in the state and is known for its community policing program. Duvall is safer than most cities, towns, and villages in America (78%) and has a lower crime rate than nearly all communities in Washington (94%), according to Neighborhood Scout.

Niche ranks Duvall as the 2nd best place to buy a house and the 3rd best place to live in Washington. Duvall’s residents enjoy a peaceful, low-stress lifestyle. 2

GEOGRAPHY AND CONNECTIONS The City encompasses 2.47 square miles and is located near Redmond and Woodinville, is 18 miles from Bellevue, 22 miles from the University of Washington, 25 miles from Seattle, 35 miles from the Seattle-Tacoma International Airport, 75 miles away from Anacortes (from which the San Juan Islands and Victoria, British Columbia are just a ferry boat ride away) and 150 miles from Vancouver, British Columbia.

HISTORY The area was formerly the home of the Snoqualmie and other and other ancestral Salish Sea tribes. Following their relocation under the Treaty of Point Elliott, the area was homesteaded by veterans of the Civil War. The valley and wooded hillsides, with a river connection to Snohomish and Everett, was an ideal place for logging. The Downtown was once a hillside occupied by Francis and James Duvall in the 1870s. The first Cherry Valley school, built in 1879, was constructed from the wood of a single log.

Many farm families built on higher ground to accommodate the flooding which occurs almost every year. In 1909, the Great Northern and Chicago, Milwaukee and St. Paul railroad relocated businesses up the hill. Some of these buildings, such as Hix Market and the Grange Hall, are still standing. By 1911, four hotels were operating and the town newspaper, the Duvall Citizen, started publication.

On January 6, 1913, the town of Duvall incorporated. Lon Brown, Duvall's first Mayor, also played in Duvall's band that would perform on top of the big rock that can still be found in Taylor Park. In keeping with this musical beginning, 3,000 fans attended a 1968 rock concert in Duvall where an upright piano was dropped from a helicopter. Performances included Country Joe and the Fish. Many older buildings have been refurbished along with a new Downtown streetscape.

GROWTH & ECONOMY Duvall residents enjoy many conveniences expected in a larger metropolitan area without some of the problems. Property values are climbing. The median home value is $715,000 per www.rockethomes.com, June 2021. Duvall combines the convenience of a high-quality metropolitan lifestyle with that of a close- knit, friendly community that has seen strong growth for over a decade. In 2020, the City issued 200 residential permits.

CITY GOVERNMENT The City has been without a City Administrator since early 2018. The duties of the City Administrator were addressed by the Police Chief and the Community Development Director and an Interim City Administrator was hired in April 2021 to prepare the foundation for the full-time permanent City Administrator position budgeted to be filled by November 2021. Duvall is well run and is in sound financial condition. The staff is strong and motivated. The elected officials are committed to doing what is best for the community. That said, the City has many opportunities and challenges. Duvall’s next City Administrator will be busy.

Duvall operates as a code city with a Mayor-Council form of government under Chapter RCW 35A.12, State of Washington. The City Council is composed of seven members elected at-large to staggered four- year terms in November of odd-numbered years. Duvall has a non-partisan form of government. All incumbent Council members are running unopposed in 2021. One member is retiring. Two existing Planning Commissioners are vying for the position. Both are familiar with Duvall’s proceedings and both will be invited to the interviews for continuity’s sake. The current Council is composed of relatively experienced members (the longest serving member was first elected in 2013). The City Council comes from a variety of disciplines and get along reasonably well although 5-2 votes occur occasionally. The Council recently reinitiated a committee structure for richer policy development. The Mayor and Council holds the staff in high regard yet there is a perceived need for continuous procedural improvements and additional visioning.

The Mayor Pro Tem is selected biennially from among the members of the Council and oversees the semi- monthly Council Committee of the Whole meetings before the main meeting presided over by the Mayor.

Together with the City Administrator, the Mayor implements the policies and ordinances of the City Council. The Mayor is experienced and knowledgeable. The current Mayor is Amy Ockerlander and is running unopposed for a second four-year term after previously serving two City Council terms.

The Mayor appoints the City Administrator who oversees the day-to-day operations of the City. The City Council confirms the appointment and authorizes employment agreements. 4

The Leadership Team consist of five professionals who are knowledgeable, collegial and well-respected regionally. With the addition of the Mayor, the Leadership Team includes the Deputy City Administrator/Community Development Director, Director of Public Works/City Engineer, Finance Director, City Clerk, and Police Chief. The Leadership Team are working managers of their departments, handling projects and policy implementation as well as providing new policy development support. Fire service is provided by King County Fire District 45 and an Interlocal Agreement with Woodinville Fire and Rescue.

The City has 47.5 FTEs and two bargaining units. The City currently provides a full range of services, including police, public works, water distribution, sewer collection, and treatment utilities, planning, building, finance and administration, and maintains the best parks in the valley. The unions are the Police Officers FOP Guild and the Teamsters. Both contracts were renegotiated in 2021 and expire in 2022 and 2023 respectively. The City and the unions have a good working relationship.

The biennial operations budget is approximately $30 million, including a General Fund operating budget of $11 million with a fund balance of roughly 30%. The 2021/2022 budget has 23 funds including operations, utilities and special purpose funds. View the 2021/2022 Biennial Budget.

DUVALL BY THE NUMBERS Geographic Size: 2.47 square miles Population: 8,090 Median value of owner-occupied units: $715,000 https://www.rockethomes.com 6/21 Median Age: 37 years Number of households: 2,681 Average Household size: 2.94 Bachelor’s Degree or Higher: 56.8% Median Household Income: $172,440 www.worldpopulationreview.com Per Capita Income (2019): $58,827 Poverty Rate: 1.85%

THE IDEAL CANDIDATE’S ATTRIBUTES AND SKILLS The Mayor and City Council are seeking an accomplished and seasoned professional, achievement-oriented leader, and balanced administrator. The individual will be a team builder, will value consensus, and will be a facilitator. Superb communication skills and unquestioned integrity are musts. The Administrator will need to be accessible. Listening will be a critical skill as well as the willingness to consider multiple points of view. Stakeholders need to feel they are heard and be presented with good options.

The ideal candidate will also be goal oriented, facilitative and at ease with public policy debate, progressive and inclusive in thought, yet conservative financially, be capable of being assertive when needed, and write and speak concisely.

The ideal candidate will possess an optimistic attitude and have strong interpersonal skills with a demonstrated ability to engage people, create networks, and lead teams. Strong skills in leading project management are essential. Earning the trust of key individuals and organizations is needed to coordinate human resources, lead collective bargaining, and leverage cooperation. Working with the Mayor in creating multiple external and internal stakeholder relationships needs to come naturally.

The ideal candidate must be discerning and able to achieve accountability without over management or resorting to authority, while holding others accountable to achieve community implementation goals that dovetail well with the Mayor and City Council’s policies.

They will need to think strategically as well as be practical, flexible, consistent, values driven, and thoughtful. The ideal candidate will work with the elected officials on a strategic plan soon after they start to realize a vision for Duvall’s future. Being a leader in change management is important for coaching and leading the team to attainable goals that will provide well-integrated outcomes. This means having the wisdom to mold, re-design, or pass up opportunities that are inconsistent. Active inquiry, design thinking, and getting buy-in with a continuous improvement mindset across boundaries is needed to grow ideas. A critical skill will be the ability to gaze into the future, identify issues, and take action to resolve before they become problems.

The right individual will use a servant leadership approach that ensures staff have the necessary resources, yet then steps back to not get in the way. Duvall’s staff is experienced so there is no need to over manage. That said, the individual will expect to be kept informed. Regular communications with the Mayor and City Council is expected from the City Administrator.

The Mayor and Council are not looking for a “yes” person. Rather, they want someone who will partner with them and be a trusted advisor to tell them what they need to hear (diplomatically and at the right time). The City Administrator should take a balanced, thoughtful, long-term decision- making and recommendation approach after considering multiple perspectives. Being a master of collaboration and consensus building is desired. Dependable follow-through for settled policy is essential. The individual will treat all City 6

Council members the same and ensure they all have the same information at the same time. The Administrator will understand politics but not be involved. Being even-tempered, having a balanced ego, and not overreacting is important. Having enough fortitude to not be overly influenced by the extremes of elected opinions will enable good faith conversations and fair mindedness.

The City Administrator position serves as a buffer between Mayor and staff and the Council and staff. Being able to ensure consistency in policy application to create consistent accountability between departments is needed. Support for the greater team is essential, as well as being able to defend truth and have the staff’s back when necessary. The City Administrator will need to be a strong leader that can be firm should there be misuse of time, priorities, or resources within the greater governmental team.

The ideal candidate will be even keeled with high mental stability and experience with coaching, mentoring, and offering constructive insight. They will act as a mentor and realize no one has a monopoly on good ideas. They will have a have a high degree of emotional intelligence and be proactive. They will lead by example. Duvall does not have endless resources so the next Administrator will need to be technologically proficient to manage the bulk of their administrative needs. The ideal person is expected to handle internal administration work and free up the Mayor for external policy, legislative, and regional work. The ideal candidate will be savvy in the use of both traditional media and social media. When confronted with negativity, the Administrator will coordinate with the Mayor and need to diplomatically correct the record. Since insufficient time and staff exists to accomplish all the community’s goals, ability to prioritize is needed.

The best candidate will be visible around City’s various facilities, attend community events, and be fun to work with. A sense of humor will be important. The Mayor and Council hopes the selected candidate will recognize that working for Duvall is an incredible opportunity and view the position as a destination. No residency is required. View the Full Job Description. View the 2021 Organizational Chart.

CURRENT AND UPCOMING PROJECTS FOR DUVALL INCLUDE:  Lead and implement a visionary Strategic Plan process  Long term financial planning with the aid of a consultant and implementation  Establish a systematic way to address park, trail, and open space amenities being demanded from a growing town (disc golf, ballfields, pump track, mountain biking trails, etc.)  Finalize the personnel manual update, related code amendments, and sync standard operating procedures

 Review, develop and incorporate diversity, equity and analysis into recommendations for future staffing levels, training, hiring and other personnel practices  Lead the Human Resources committee and provide recommendations to the Mayor  Implement the comprehensive pay and benefit study currently underway  Identify affordable housing strategies. Retail workers, service industry workers, teachers, police, and fire-fighters are finding it difficult to live in Duvall -- understand and help bridge the income gap and communications between existing and newer citizens  Create an effective interdepartmental/elected official communications system for service requests, evolving policies, and new potential projects  Assist in managing smart and sustainable growth  Ensure emergency management preparedness for addressing periodic Snoqualmie River floods and other emergencies  Help maintain Duvall’s small town feel while welcoming new residents  Implement the Facility Plan outcomes  Work to enhance regional transportation route planning/improvements, including reduced traffic congestion and increased walkability  Assist with completion with the City’s first workload analysis, and recommendations for future staffing levels and positions  Oversee completion of community branding efforts  Manage City Hall Operations

THE NEW CITY ADMINISTRATOR WILL ALSO:  Serve as the City’s Human Resource Officer and conduct negotiations  Initiate economic development initiatives such as being the single point of contact for new businesses and obtaining assistance for existing businesses  Attract more woman-owned and minority businesses  Coordinate the American Rescue Plan Act (ARPA) funding uses

REQUIREMENTS FOR SELECTION The successful candidate is required to have:

 Bachelor’s Degree in administration, human resources, community development, business administration, urban planning, parks administration, or a related field  Five (5) years of progressively responsible administrative and governmental experience, including significant experience working on municipal policymaking and implementation in mid-size 8

communities, or an equivalent combination of relevant experience. Previous experience working in a Mayor-Council system is beneficial  Budget administrative experience  Strong ethical standards combined with a conservative approach to financial policy with a focus on governmental efficiency and transparency  Current management, planning, and communication skills  State-of-the-art human resource knowledge including supervisory experience using collaborative management principles such as servant leadership  Economic development and marketing knowledge, including development agreements  Knowledge of systems and inequities as they relate to diversity and inclusion  Demonstrated ability to establish and maintain effective working relationships with elected officials, department heads/staff, business representatives, community stakeholders, outside governmental agencies, local media, and the general public

PREFERENCES  Multi-disciplinary government and/or private sector experience is a plus  Long-term financial planning and financial management experience  Financial sustainability strategy experience  State of Washington experience is desirable but not mandatory  Municipal experience working with elected officials in a strong Mayor-Council form of government is beneficial; experience with the Council-Administrator form also is ideal  Being a Credentialed Administrator (CM) from International City/County Management Association would be a bonus  Legislative experience with multiple branches of government on policymaking and administrative rulemaking  Experience with securing grants and public/private partnerships  Strong understanding of utilities management  Knowledge and experience in emergency management  Recruitment skills, especially related to police

SELECTION PROCESS First review of applications is August 24th. Applicants will be screened until August 31st. Remote interviews are set for Tuesday, September 14th. Follow-up interviews will likely be in person on Monday, September 20th with selection shortly thereafter. Expected start date is in late October 2021.

COMPENSATION Starting salary is $134,873 to 170,487, DOQ/E with City paid family, medical, Washington State PERS or equivalent retirement plan, competitive leave, and vacation. An employment agreement will be offered to the selected finalist including a variety of fringe benefits View the List of Fringe Benefits. The City will pay reasonable relocation expenses. The City of Duvall is committed to advancing equity and creating an inclusive culture.

Duvall is an excellent opportunity for a caring professional looking to make a difference in a forward- thinking community and to settle into their career. If you are that type of City Administrator, apply now.

HOW TO APPLY Apply at www.govhrjobs.com with resume, cover letter, and contact information for professional references, two of whom are from your last two positions, by August 24, 2021 to the attention of Ryan Cotton, Interim City Administrator, City of Duvall, [email protected] or call with questions - 425-439-4355 or 425-788- 1185 or 616-638-8910, www.duvallwa.gov. The City of Duvall is an Equal Opportunity Employer.

CONFIDENTIALITY Applications will be kept confidential until finalists are selected at which time you will be advised that the names will be released to the public. 10

Fringe Benefit List

Family medical – 100% for employee, 75% for dependents, increasing to 80% for dependents in 2022, with buyout option/payment for employee only starting in January 2022

Family dental– 100% for employee and dependents

Optional participation in the Washington State Deferred Compensation Program

Retirement benefits through the Washington State Public Employees’ Retirement System (both a benefit and a deduction)

Washington State Paid Family Medical Leave - (both a benefit and deduction)

Life Insurance

Unemployment insurance

Liability coverage through the Washington Cities Insurance Authority

Employment Assistance Program

Vacation Accrual of two weeks in year one, with escalation through year sixteen

10 paid Holidays

Two paid Floating Holidays

Sick leave of one day per month

Class Title: City Administrator Department: Administration Union: Non-Union Date: 09/01/2013

GENERAL PURPOSE

The City Administrator acts as the head of the administrative branch of the City government. The City Administrator shall assist the Mayor in performance of their duties and shall do all things required of them by the Mayor or the City Council to assist in the administration of City government.

The City Administrator is an at-will management/professional position without a definite term under the supervision of the Mayor, serving at the pleasure of the Mayor. Key responsibilities include supporting the Mayor and City Council in all assigned internal and external operations of the City, representing the City to the public and other agencies, developing and implementing short- and long-term organizational goals, initiating, evaluating, formulating and implementing public policy, programs and procedures.

The City Administrator is responsible for the overall supervision, direction, evaluation, training and recruitment of City personnel, subject to any applicable civil service and collective bargaining provisions. This position has the overall responsibility for the professional administration of City government through effective management of available human, financial and material resources.

The City Administrator is required to have, and to apply, an extensive knowledge of the principles and techniques of local governmental management, administration, and operations, ideally involving non-charter cities. This position requires the exercise of mature judgment and the application of management techniques and practices in a wide variety of administrative, fiscal, and related areas. The City Administrator plans, organizes, coordinates, and administers, through management staff, all City functions and activities, provides policy guidance and coordinates the activities of department heads and staff support, and fosters cooperative working relationships with civic groups, inter-governmental/regional agencies and City staff.

This position requires an oath for the faithful performance of the individual’s duties as prescribed by ordinance.

LEVEL OF AUTHORITY

The City Administrator exercises direction and authority as provided by the Mayor. This individual will manage the day-to-day operations of the City and exercises overall supervision of all City personnel.

Subject to the concurrence of the Mayor, the City Administrator appoints and removes at any time all department heads and employees of the City, except members of the City Council, and is

{DPK2434753.DOCX;1/13142.000001/ } subject to the provisions of any applicable law, rule or regulation relating to civil service, and any applicable collective bargaining agreement.

Unless related to a countermanding collective bargaining agreement, ordinance, law, or the Mayor’s action upon appeal, the decision of the City Administrator shall be final, and there shall be no appeal therefrom to any other office, body or court whatsoever.

SUPERVISION RECEIVED AND EXERCISED

Appointed by the Mayor, and confirmed by the City Council, the City Administrator receives their administrative direction from the Mayor. This individual will directly supervise the Police Chief, Finance Director, Public Works Director, City Clerk, Community Development Director/Deputy City Administrator and IT Manager/Contract.

The City Administrator may authorize department directors to appoint or remove subordinates in such department or office consistent with applicable law and any applicable collective bargaining agreement. Any officer or employee who may be appointed by the City Administrator, or by the head of a department or office, except one who holds his position subject to civil service, may be separated from employment by the Administrator or other such appointing officer at any time, subject to any applicable collective bargaining agreement.

ESSENTIAL DUTIES AND RESPONSIBILITIES

• Responsible for a positive organizational culture and establishes and maintains a productive working environment conducive to ever-improving morale, individual outcomes, quality, creativity, accountability, and teamwork.

• Accountable for the performance of all City employees to the extent allowed by law and ordinance, and directly supervises the activities of department managers, the City Administrator is responsible for the coordination of work among all departments and consultants. Responsible for the performance appraisals of department directors, conducts regular staff meetings, and develops a successful management team. Establishes and maintains an effective organizational structure in order to accomplish City government objectives.

• Assures efficient and responsible City operations by providing managerial leadership and direction; develops, inculcates, and maintains organizational structure; establishes major operational objectives, monitors performance and implements necessary corrective action; assigns project and program responsibilities to department directors and works with them in developing administrative and departmental goals.

• Reports to the Mayor on a regular basis, using email and other forms of communication, and regularly and/or as requested, to the City Council regarding the status of projects and functions of City activities, as well as upcoming policy matters.

• Works with the Mayor in directing the preparation of City Council meeting agendas, attends meetings of the City Council, and is responsible for coordinating the work of City Council committees and attendance as needed.

• Assures the development of short- and long-term plans to meet the defined goals and objectives of the City; directs the development of City operation and presents policy

{DPK2434753.DOCX;1/13142.000001/ } recommendations to the City Council and Mayor regarding all aspects of City programs and services; and implements the policies established by the City Council; which includes adhering to the City of Duvall comprehensive plan.

• Serves as first point of contact between City Council and directors and responds to requests for information by the Mayor and City Council in a timely and thorough manner; shares such answers with the Mayor and City Council, as well as the Administration as relevant.

• Advises and assists the Mayor and City Council in the formulation and establishment of administrative policies for operation of City government departments and offices, as well as develops policy recommendations related to the general future direction of City government.

• Serves as the Human Resource officer for Duvall. Reviews the City codes on a regular basis and assures that the codes, rules, policies, and procedures of the City and City Council are up to date and the City’s on-going procedures are in compliance with State of Washington and federal laws.

• In cooperation with the Finance Director, all department directors, and Mayor, participate in the preparation of the proposed preliminary biennial budget as well as assist the Mayor with the submittal of the preliminary budget by the Mayor to the City Council. The City Administrator shall be responsible for its administration after adoption;

• Responsible for effective and efficient staff support services including personnel management, risk management, and monitoring purchases and expenditures of all departments.

• Through delegation, oversees, motivates and evaluates department directors and key staff to help: (1) achieve their individual goals; (2) collectively achieve their department’s mission; and (3) foster leadership development throughout the organization.

• Oversees labor relations function of the City and recommends bargaining guidelines and settlements to the City Council and administers union agreements of bargaining units.

• Maintains working relationships with outside agencies, including tribal, federal, state, county, other cities, AWC, WCIA, Sound Cities Association, Snoqualmie Valley Government Association, State Auditor, Chamber of Commerce, community groups, and others. Frequently represents the City before civic groups, the press, economic interests, other governmental bodies or the general public. Knowledgeable and proactive to proposed laws, rules, and regulations of outside agencies that may affect the City.

• Serves as the Economic Development Manager for Duvall. As such, coordinates actions and reactions to retain and recruit commercial, entrepreneurs, and other businesses as well as preferred housing types and development and may regularly attend Duvall service clubs and regional agencies to enhance outcomes.

• Performs other duties in the interest of the City as assigned by the Mayor.

{DPK2434753.DOCX;1/13142.000001/ } DESIRED MINIMUM QUALIFICATIONS

Education and Experience:

o Bachelor’s Degree in Public Administration or closely related field. Master’s Degree in public administration or related field is preferred.

o Five (5) years of progressively responsible municipal or governmental management experience, including progressively complex public sector management experience in governmental operations.

o Requires a high level of experience in strategic planning, financial and budgetary processes, capital improvement program management, intergovernmental relations, employment law, labor relations, negotiations, facilitation, implementation of union agreements, economic development, and land use and transportation issues.

o Requires a thorough knowledge of the theory, principles and practices of municipal administration, finance, and operations, including fiscal and budgetary practices, financial analysis techniques, governmental accounting procedures and standards, and Duvall's organization, mission, philosophy and operating functions as is publicly- available.

Knowledge Abilities and Skills:

Required Knowledge:

o Municipal political environment and sensitivities, and how to function effectively in that environment.

o Municipal legal requirements and structures.

o Best practices and industry standards for human resource and personnel policies and procedures as well as labor relations, benefit administration, recruitment and selection practices, salary administration, equal employment opportunity laws and regulations.

o Economic development principles. Required Ability to:

o Supervise, lead, coach and use best management practices to improve staff performance.

o Counsel, motivate and provide feedback to City personnel at all levels securing their commitments to City goals.

o Develop, organize, and direct comprehensive Citywide goals, objectives and implement effective managerial controls and to set, implement and evaluate departmental strategies and administrative operations.

o Provide effective leadership, organize, plan, schedule, and review performance of subordinates.

{DPK2434753.DOCX;1/13142.000001/ }

o Ability to read, understand and follow the City’s ordinances, plans, and polices.

o Make analytical and reasoned judgments on issues sensitive to the public.

o Communicate exceptionally well both orally and in writing, including public speaking and presentation skills and in all forms of written correspondence.

o Develop and monitor work procedures and budget guidelines.

o Establish and maintain effective working relationships with the City Council, elected officials, government agencies, City staff, community leaders, advisory boards, the news media, and the general public while preserving a high level of trust.

o Develop short- and long-range goals, and plan, assign, coordinate and evaluate the work of City staff with appropriate delegation.

o Negotiate and administer contracts with outside vendors, service providers, and labor unions.

o Resolve conflicts and gain cooperation among competing interest groups. Required Skills:

o Excellent oral and written communication skills, public speaking techniques, and ability to prepare and direct preparation of comprehensive reports, budgets, recommendations, departmental materials, and correspondence.

o As a working administrator, needs to be skilled in MS Office products including Word, PowerPoint, Outlook, Teams, and Excel.

o Skilled in evaluating and overseeing the selection, implementation, and maintenance of computer hardware, software, and cloud-based systems to ensure the integrity of the City’s technology on an ongoing basis, such as records retention, privacy, and protection from data breaches and cyberterrorism.

Any combination of education and experience, which provides the applicant with the desired skills, knowledge and ability required to perform the job, may be substituted for some of these qualification specifics.

SPECIAL REQUIREMENTS

o Must successfully pass a driver's and criminal background check and/or other checks deemed appropriate by the appointing authority upon a conditional offer of employment.

o Must possess a valid Washington State driver's license or have the ability to obtain one prior to employment.

o Must reside in the State of Washington during employment with the City and be located close enough to the City to work at City Hall.

{DPK2434753.DOCX;1/13142.000001/ } TOOLS AND EQUIPMENT USED

Laptop and docking station, municipal ERP software, Microsoft Office 365 suite, motor vehicle, smart phone, fax machine, and various printers/copiers, and other office tools and equipment.

PHYSICAL DEMANDS

The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. Mandatory time beyond customary office work hours is an essential function of this position and, therefore, not subject to accommodation.

Work is performed mostly in office settings. Some outdoor work may be required in the inspection of various land use developments, construction sites, at community functions or incidents, or public works facilities.

Hand-eye coordination may be necessary to operate computers and various pieces of office equipment.

While performing the duties of this job, the employee is occasionally required to stand; walk; use hands to finger, handle, feel or operate objects, tools, or controls; and reach with hands and arms. The employee is occasionally required to sit; climb or balance; stoop, kneel, crouch, or crawl; talk or hear; and smell. The employee must occasionally lift and/or move up to 30 pounds. Specific vision abilities required by this job include close vision, distance vision, color vision, peripheral vision, depth perception, and the ability to adjust focus.

WORK ENVIRONMENT

The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job.

The noise level in the work environment is usually moderate in the office.

While performing the duties of this job, the employee occasionally works in outside weather conditions.

The work environment also includes traveling, such as to community events and to other agencies.

SELECTION GUIDELINES

Formal application, rating of education and experiences; oral interviews and reference checks, including the last two employers; job-related personality/psychological profiles, and job-related tests may be required. Simulations of actual job expectations and scenarios may be required.

The duties listed above are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to the position.

{DPK2434753.DOCX;1/13142.000001/ } The job description does not constitute an employment agreement between the employer and employee and is subject to change by the employer as the needs of the employer and requirements of the job change.

Approval:

Mayor

Effective Date: 09/01/2013 Revision History: 09/01/2013 Rev. A 07/21/2021 Rev. B

{DPK2434753.DOCX;1/13142.000001/ }

Date: August 11, 2021 To: Mayor Ockerlander City Council From: Finance

June 2021 (Second Quarter) Financial Report

This monthly report provides information on the City’s financial position. It focuses primarily on General Fund revenues and expenditures, but also touches on other revenues that may be impacted by an economic slowdown. Each quarter this report will provide additional information on the City’s debt, reserve balances, investments, outstanding compensated absences, and capital improvement projects.

The City started the 2021/2022 biennium off with higher beginning fund balances than estimated in the 2021/2022 Biennial Budget. Actual beginning fund balances totaled $26,051,021, which was $4,169,933 more than the $21,881,087 estimated. This is due in part to the significant number of permits that were processed in November and December of 2020 but were expected in 2021. In addition, $900,037 was recently added to the beginning fund balance of the Parks Capital Project Fund to report park impact fee revenues held in an escrow account per a developer agreement. As agreed upon park improvements are made, the developer will draw down the escrow account and the City will report the amount as a capital expenditure.

The City started out the 2021/2022 biennium with two new funds; the Building and Permitting Fund and the Facilities Capital Project Fund. The beginning balance for the Building and Permitting Fund was derived from like revenues and expenditures reported in the General Fund during the 2019/2020 biennium. For comparison purposes, those revenues and expenditures have been pulled out of the 2020 General Fund and are shown as 2020 Building and Permitting revenues and expenditures. In addition, school impact fees, which are collected by the City and remitted to the School District, were previously held in a deposit fund, which is not part of the City’s budget. They are now reported in the Building and Permitting Fund, so 2020 school impact fee revenues and expenditures will also be reported in the Building and Permitting Fund for trending purposes. The City also created a new fund, the American Rescue Plan Act Fund, to track revenues received from the federal government to help mitigate the impact of the COVID pandemic and their use.

As of the end of June, 25% of the biennium was complete. The City had received 26.8% of budgeted revenues and had spent 17.4% of budgeted expenditures. The tables below show biennium to date budgeted vs. actual revenues and expenditures by fund type.

Biennium to Date Revenue by Fund Type Fund Type 2021/2022 Budgeted Revenue 2021/2022 BTD Revenue % Received General Fund $10,977,775 $2,988,898 27.23% Contingency Fund $2,657 $703 26.45% Special Revenue Funds $6,128,852 $2,294,287 37.43% Debt Service $974,914 $243,629 24.99% Capital Project Funds $4,842,235 $657,119 13.57% Utility Funds $16,388,207 $4,278,783 26.11% Internal Service Funds $1,861,824 $558,469 30.00% Total $41,176,465 $11,021,887 26.77%

Biennium to Date Expenses by Fund Type 2021/2022 Budgeted 2021/2022 BTD Fund Type Expenditures Expenditures % Spent General Fund $11,142,253 $2,413,336 21.66% Contingency Fund $0 $0 0.00% Special Revenue Funds $5,698,998 $956,721 16.79% Debt Service $974,914 $57,247 5.87% Capital Project Funds $4,644,225 $243,642 5.25% Utility Funds $15,632,311 $2,826,609 18.08% Internal Service Funds $1,786,943 $439,143 24.58% Total $39,879,644 $6,936,699 17.39%

General Fund Revenues The City receives 82% of its General Fund revenues from taxes. As of the end of June 2021, 27% of tax revenue budgeted in the General Fund had been received.

General Fund Tax Revenue 2021/2022 % Thru June Thru June Budget Actual Remaining Collected 2020 2021 % ∆ Real & Personal Property Taxes $2,670,068 $682,747 $1,987,321 25.6% $642,451 $682,747 6% Property Taxes - Levy Lid Lift $810,435 $200,188 $610,247 24.7% $188,446 $200,188 6% Total GF Property Tax $3,480,503 $882,935 $2,597,568 25.4% $830,897 $882,935 6%

Local Retail Sales & Use Taxes $1,859,184 $552,423 $1,306,762 29.7% $410,720 $552,423 35% Sales Tax from Construction $644,254 $215,156 $429,099 33.4% $112,024 $215,156 92% Affordable Housing Sales Tax $18,000 $3,253 $14,747 18.1% $5 $3,253 Sales Tax-Crim Justice-LOCAL $494,983 $121,360 $373,624 24.5% $108,130 $121,360 12% Business Tax - Electricity $540,000 $163,385 $376,615 30.3% $145,925 $163,385 12% Interfund Utility Tax - Water $446,376 $99,384 $346,992 22.3% $87,436 $99,384 14% Business Tax - Natural Gas $232,162 $94,441 $137,721 40.7% $89,068 $94,441 6% Interfund Utility Tax - Sewer $553,298 $134,936 $418,361 24.4% $129,796 $134,936 4% Business Tax - Garbage $239,366 $59,864 $179,502 25.0% $68,805 $59,864 -13% Business Tax - TV Cable $102,754 $22,913 $79,841 22.3% $25,220 $22,913 -9% Business Tax - Telephone $210,866 $35,302 $175,565 16.7% $48,364 $35,302 -27% Interfund Utility Tax - Storm $172,118 $42,605 $129,513 24.8% $40,256 $42,605 6% Gambling Tax $33,500 $9,007 $24,493 26.9% $12,840 $9,007 -30% Leasehold Excise Tax $4,337 $1,151 $3,186 26.5% $280 $1,151 311% Total GF Tax w/o Property Tax $5,551,200 $1,555,178 $3,996,022 28.0% $1,278,869 $1,555,178 22%

Total GF Tax Revenue $9,031,703 $2,438,113 $6,593,590 27.0% $2,109,766 $2,438,113 16%

Property tax is the General Fund’s largest and most reliable source of revenue. Property taxes are due in two payments with April 30th and November 2nd deadlines.

The General Fund’s second largest source of revenue is utility tax. Revenue from utility tax is generally stable, but taxes on natural gas, electricity and water are affected by weather and fluctuate from year to year. Biennium to date, the City has collected 26.1%, or $652,828.00, of budgeted utility tax.

General Fund Utility Tax Revenues

$1,600,000

$1,200,000

$800,000

$400,000

$- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD Thru June $439,238 $445,293 $506,354 $495,677 $555,275 $643,109 $620,931 $611,300 $634,869 $652,829 Total $853,074 $878,518 $948,240 $1,033,808 $996,591 $1,221,722 $1,202,918 $1,187,633 $1,216,872 $652,829

2 Sales tax is the General Fund’s third largest source of revenue. The City receives sales tax revenue two months after it is collected by businesses, so June receipts were from sales incurred in April. The City has received approximately 30.7% of its budgeted sales tax and year to date sales tax in June of 2021 is 47%, or $247,451, higher than the same period in 2020.

General Fund Sales Tax Revenue

$1,600,000

$1,200,000

$800,000

$400,000

$0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD Thru June $312,585 $315,910 $323,777 $313,136 $353,286 $430,291 $482,889 $503,314 $522,745 $767,578 YTD $678,275 $659,256 $664,995 $685,805 $814,173 $925,133 $1,049,874 $1,134,420 $1,220,316 $767,578

In June of 2020, the City saw only a slight decrease in total sales tax revenue ($500) over June of 2019, despite the COVID-19 pandemic being in full force in April of 2019. In June of 2021, the City received 68.5%, or $57,100 more than June of 2020. The bulk of the increase comes from sales tax from construction, which increased by 223.5%, or $30,090. In June of 2020, sales tax from construction was down 40.9%, or $9,300, over June of 2019. Sales tax from retail trade, which was the City’s strongest category of sales tax during the pandemic, increased by 25.8%, or $10,060, over June of 2020. Accommodation and food services, the City’s third highest source of sales tax in June, increased by 41.2%, or $3,280. In June of 2020, sales tax from accommodation and food services was down by 15.6%, or $1,470, over June of 2019.

The amounts in the table below show year to date sales tax revenue compared to the same period in the prior year and do not have the administrative fee charged by the Department of Revenue removed, whereas the amounts in the chart above are net of the fee.

Jan - June 2020 vs. Jan - June 2021 Sales Tax by NAICS Category Thru June Thru June NAICS_Code_Name 2020 2021 ∆ ∆% Retail Trade $ 212,208 $ 290,192 $ 77,983 36.7% Construction $ 112,981 $ 217,329 $ 104,348 92.4% Admin & Support of Waste Mgmt & Remedial Svcs $ 42,684 $ 57,782 $ 15,099 35.4% Accommodation & Food Services $ 49,172 $ 57,556 $ 8,384 17.0% Wholesale Trade $ 21,535 $ 36,778 $ 15,243 70.8% Information/Communication $ 24,900 $ 27,941 $ 3,041 12.2% Manufacturing $ 9,299 $ 19,799 $ 10,500 112.9% Professional, Scientific, & Technical Svcs $ 11,495 $ 17,756 $ 6,261 54.5% Miscellaneous $ 7,095 $ 13,161 $ 6,067 85.5% Other Services (except Public Administration) $ 13,525 $ 12,839 $ (686) -5.1% Finance $ 6,924 $ 7,636 $ 712 10.3% Real Estate & Rental & Leasing $ 7,498 $ 7,445 $ (54) -0.7% Educational Services $ 2,130 $ 2,083 $ (47) -2.2% Arts, Entertainment, & Recreation $ 2,053 $ 2,021 $ (32) -1.5% Utilities $ 1,398 $ 1,251 $ (147) -10.5% Transportation & Warehousing $ 464 $ 1,159 $ 695 149.6% Health Care & Social Assistance $ 492 $ 672 $ 180 36.5% Agriculture, Forestry, Fishing & Hunting $ 1,219 $ 657 $ (562) -46.1% Public Administration $ 10 $ 453 $ 443 4501.0% Management of Companies & Enterprises $ 26 $ 38 $ 12 48.3% Mining $ 21 $ 34 $ 13 Total $ 527,128 $ 774,579 $ 247,451 46.9% Total without Construction $ 414,148 $ 557,251 $ 143,103 34.6%

Approximately 5% of budgeted General Fund revenue comes from licenses and permits. As noted in the beginning of this report, building and permitting revenues have been moved to the new Building and Permitting Fund for the 2021/2022 biennium. To date, the City has received 24.8% of its budgeted General Fund license and permit revenue.

General Fund Licensing and Permit Revenue 2021/2022 % Thru June* Thru June Budget Actual Remaining Collected 2020 2021 % ∆ Fireworks Permits $400 $100 $300 25.0% $100 $100 0% Special Events Permits $1,500 $450 $1,050 30.0% $25 $450 1700% Franchise Fees - Garbage $280,000 $72,420 $207,580 25.9% $57,933 $72,420 25% Franchise Fees - Cable TV $86,000 $18,359 $67,641 21.3% $18,749 $18,359 -2% Business Licenses & Permits $85,000 $20,524 $64,476 24.1% $19,640 $20,524 5% Permit Fee IT Surcharge $84,160 $21,327 $62,833 25.3% $23,400 $21,327 -9% Concealed Weapons Permits $3,540 $728 $2,812 20.6% $243 $728 200% Total GF Licenses & Permits $540,600 $133,908 $406,691 24.8% $120,090 $133,908 12% *Building and permitting revenues are no longer reported in the General Fund and have been pulled out for trending purposes

Revenue from charges for services also accounts for approximately 5% of the General Fund budget. As part of its new contract with the City’s waste management provider, the City received $28,000 in January 2021 for purchased services that had not been budgeted. A corresponding expenditure for the consulting services related to the waste management request for proposal and contract was paid in February. As of the end of June, the City had received 30.7% of its budgeted charges for services revenue.

General Fund Charges for Services Revenue 2021/2022 % Thru June* Thru June Budget Actual Remaining Collected 2020 2021 % ∆ Admin Fee - Cell Tower Leases $5,921 $3,474 $2,447 59% $928 $3,474 275% Accounting Services $0 $25 -$25 $0 $25 Sale of Maps & Publications $200 $10 $190 5% $7 $10 34% Engineering Fees & Charges $180,000 $62,442 $117,558 35% $60,231 $62,442 4% Admin Fee - Alcohol Use App $0 $0 $0 $25 $0 -100% Purchasing Services $0 $0 $0 $0 $0 RSD School Officer $80,000 $28,000 $52,000 35% $0 $28,000 Law Enforcement Services $0 $415 -$415 $983 $415 -58% Animal Control & Shelter Servi $52,000 $0 $52,000 0% $0 $0 Zoning, Subdivision, Dvlp Fees $90,000 $75,339 $14,661 84% $57,485 $75,339 31% Planning Deposits $0 $3,752 -$3,752 $8,177 $3,752 -54% Land Use Permitting Fees $140,000 $0 $140,000 0% $0 $0 Summerstage Sponsor Fees $20,000 $1,650 $18,350 8% $0 $1,650 Stage Sponsorship Fees $2,500 $0 $2,500 0% $0 $0 Total GF Charges for Services $570,621 $175,107 $395,514 30.7% $127,836 $175,107 37.0%

4 General Fund Revenue Summary and Expenditure Overview General Fund Revenue Summary As of the end of June, the City had received 27% of its budgeted General Fund revenue. Miscellaneous revenues are higher in 2020 compared to 2021, due to an Association of Washington Cities rebate for its Workers Comp Retro Program. General Fund revenues from taxes, licenses and permits and charges for services are discussed on the preceding pages.

2021/2022 06/30/2021 Thru June General Fund Revenues Budget BTD Actual BTD % 2020* Thru June 2021 % ∆ Beginning Fund Balance $2,180,537 $2,724,136 125% Taxes $9,031,703 $2,438,113 27% $2,109,766 $2,438,113 16% Licenses & Permits 540,600 133,908 25% 120,090 133,908 12% Intergov. Revenues 342,863 106,798 31% 81,982 106,798 30% Charges for Goods & Serv. 570,621 175,107 31% 127,836 175,107 37% Fines & Penalties 65,000 8,773 13% 8,140 8,773 8% Miscellaneous Revenues 56,852 12,241 22% 47,746 12,241 -74% Other 370,136 113,959 31% 94,163 113,959 21% Total Revenues $10,977,775 $2,988,898 27% $2,589,723 $2,988,898 15.4%

General Fund Expenditure Summary See below for the breakout of General Fund expenditures by department and category and the following page for more detail on some of the major variances compared to the same period in the prior year.

2021/2022 06/30/2021 Thru June General Fund Expenditures by Dept. Budget BTD Actual BTD % 2020* Thru June 2021 % ∆ Legislative $341,548 $68,825 20% $44,801 $68,825 54% Executi ve 401,796 76,469 19% 31,599 76,469 142% Community Events 183,588 19,622 11% 26,480 19,622 -26% Finance Dept. 945,337 186,579 20% 133,401 186,579 40% Planning Dept. 918,941 206,849 23% 191,212 206,849 8% Police Dept. 5,716,453 1,228,317 21% 1,187,895 1,228,317 3% Economic Development 24,000 - 0% - - Recycling Dept. 48,500 556 1% 267 556 108% Civil Service 15,500 13,233 85% 3,140 13,233 321% Parks Dept. 859,791 181,746 21% 137,266 181,746 32% Cultural Commission 39,287 4,771 12% 4,260 4,771 12% City Mitigation Projects 8,000 - 0% 4,297 - -100% Engineering Dept. 523,979 122,501 23% 97,415 122,501 26% Emergency Response 37,200 11,281 30% 83,881 11,281 -87% Legal 308,145 100,217 33% 50,801 100,217 97% Non-Departmental 770,188 192,371 25% 389,217 192,371 -51% Total Expenditures $11,142,253 $2,413,336 22% $2,385,931 $2,413,336 1%

2021/2022 06/30/2021 Thru June General Fund Expenditures by Cat. Budget BTD Actual BTD % 2020* Thru June 2021 % ∆ Salaries and Wages $ 4,768,000 $ 1,118,333 23% $ 1,071,304 $ 1,118,333 4% Personnel Benefits 1,846,300 358,561 19% 397,520 358,561 -10% Supplies 196,297 33,260 17% 88,638 33,260 -62% Services 3,550,468 710,811 20% 591,189 710,811 20% Transfers Out/Deposits 770,188 192,371 25% 237,281 192,371 -19% Capital Outlays 11,000 - 0% - - Total Expenditures $11,142,253 $2,413,336 22% $2,385,931 $2,413,336 1% Revenue minus Expenditures -$164,478 $575,561 $203,792 $575,561 Ending Fund Balance $2,016,059 $3,299,698 164% *Building and permitting revenues and expenditures have been pulled out for trending purposes

5 General Fund Expenditures by Department Overall, expenditures for many departments are higher in 2021 than in 2020 due to the way the City is allocating cost of insurance, internal service charges, and some licenses and subscriptions. Prior to 2021, many of these costs were reported as “non-departmental” and allocated to funds outside of the General Fund. In 2021, these costs are allocated to the appropriate department, regardless of the fund.

General Fund Expenditures by Category Year to date personnel benefits are lower in 2021 than in 2020 due to several vacant police officer positions that are currently being filled by officers working overtime. In addition, medical benefits for Teamsters employees have been incorrectly reported in salaries. The correction will show in the July report. Year to date supplies are higher in 2020 than in 2021 due to the City purchasing personal protection equipment to mitigate the impact of COVID-19. Year to date services are higher in 2021 than in 2020 due to $28,000 for waste management proposal and contract services, and an increase in the cost of internal services for equipment replacement.

Building and Permitting Fund Revenue Summary and Expenditure Overview As noted previously, the Building and Permitting Fund is new to the 2021/2022 biennium, so 2020 building and permitting revenue and expenditures have been pulled out of the General Fund and the Deposit Fund (a non-budgeted fund) for trending purposes.

The City issued four new housing permits in June 2021, compared to 13 in June 2020. In total, 32 new housing permits have been issued in 2021, compared to 38 for the same period in 2020.

Building and Permitting Fund Budget vs Actual 2021/2022 Thru June Thru June Revenues Budget 6/30/2021 BTD % 2020* 2021 % ∆ Beginning Fund Balance $ 615,435 $ 1,171,216 190% Building Permit Fees $ 825,643 $ 173,337 21% $ 183,288 $ 173,337 -5% Admin Fee-School/Rd/Park Imp 11,245 2,015 18% 2,470 2,015 -18% Bldg. Inspection Fees 8,500 737 9% 1,099 737 -33% Plan Check Fees 537,551 90,843 17% 142,601 90,843 -36% Plan Check - Consultant Review - 1,950 4,000 1,950 -51% Fire Plan Review & Inspections 69,500 15,054 22% 1,071 15,054 1306% School Impact Fees** 2,422,000 315,817 13% 386,623 315,817 -18% Interest on Investments - 1,586 1,586 Miscellaneous Revenue - - Total Revenues $ 3,874,438 $ 601,339 16% $ 721,153 $ 601,339 -16.6%

2021/2022 Thru June Thru June Expenditures by Category Budget 6/30/2021 BTD % 2020* 2021 % ∆ Salaries and Wages $ 563,000 $ 138,217 25% $ 112,756 $ 138,217 23% Personnel Benefits 247,000 49,911 20% 47,984 $ 49,911 4% Supplies 10,586 2,600 25% 1,632 $ 2,600 59% Services 317,923 42,902 13% 26,195 $ 42,902 64% School Impact Fee Distribution** 2,422,000 384,545 16% 234,381 $ 384,545 64% Transfers Out/Deposits 48,886 15,512 32% - $ 15,512 Capital Outlays 33,000 - 0% $ - Total Expenditures $ 3,642,395 $ 633,687 17% $ 422,948 $ 633,687 50% Revenue minus Expenditures $ 232,043 $ (32,348) $ 298,205 $ (32,348)

Ending Fund Balance $ 847,478 $ 1,138,868 134% *2020 Building and permitting revenues and expenditures have been pulled out the General Fund and are shown here for trending purposes ** 2020 School Impact Fees were reported in the 633 Deposit Fund in 2020 and are shown here for trending purposes

6 Capital Funds The City received $146,393 in Real Estate Excise Tax (REET) in June from the sale of 35 units in June. This is higher than the average for the prior nine years of 27.3 units. The average sales price of a unit sold in June 2020 was $688,276 compared to the $844,981 average sales price of a unit sold in June 2021.

REET I & REET II $1,000,000

$800,000

$600,000

$400,000

$200,000

$- 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD 2021 Thru June $133,956 $143,337 $135,884 $256,596 $181,451 $211,231 $349,579 $289,536 $241,049 $502,583 Total $354,875 $341,510 $346,820 $526,314 $494,287 $618,170 $720,678 $586,138 $798,907 $502,583

Biennium to date, the City has collected $ 77,608 in Street Impact Fees from the issuance of two new housing permits and one commercial permit, and $16,226 in Park Impact Fees from the issuance of two new housing permits.

Street Impact Fees

$800,000

$600,000

$400,000

$200,000

$0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Thru June $336,600 $149,663 $0 $107,763 $81,181 $289,187 $174,371 $115,413 $0 $77,608 Total $523,981 $370,219 $26,230 $125,667 $224,489 $526,494 $335,852 $290,533 $582,615 $77,608

Park Impact Fees

$600,000

$400,000

$200,000

$0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Thru June 193,725 83,866 - 79,050 56,840 171,471 205,119 95,056 - 16,226 Total 276,289 207,458 18,108 93,000 150,745 412,866 334,268 251,596 - 16,226

7 Transportation Benefit District Effective April of 2020, the City imposed a voter approved 0.2% sales tax to fund transportation operations and maintenance related projects. The City started receiving the tax in May of 2020. The graph below will show the tax trend by month until enough data is available to trend by year. Biennium to date, the City has received $179,830, or 30.5%, of budgeted Transportation Benefit District sales tax.

Transportation Benefit District Sales Tax 40000 $33,920 $32,709 $32,671 $30,145 $28,616 $27,589 $27,088 30000 $25,913 $26,002 $25,521 $25,171 $22,275 20000 $16,984

10000 $100 0

2020 2021

Utility Funds Revenue from utility billing is reported on an accrual basis until the year end, when an adjusting entry is made to remove revenue that has been billed in December but will be received in January.

Water Fund January Water Fund expenditures are higher in 2021 than in 2022 due to the reallocation of Public Works maintenance work, the timing of utility tax payments and a budgeted transfer to the Water Capital Projects Fund. Salaries and benefits will be adjusted in the July report to correct an error of reporting medical benefits in salaries.

2021/2022 % Thru June Thru June Water Fund Budget Actual Remaining Collected 2020 2021 % ∆ Revenue Water Charges $4,463,762 $1,158,800 $3,304,962 26.0% $1,051,588 $1,158,800 10% Water Hook-Up Fees $44,000 $17,283 $26,718 39.3% $20,195 $17,283 -14% Water Billing Late Fees $72,000 $0 $72,000 0.0% $9,709 $0 -100% Other - Interest & Misc. $24,392 $12,833 $11,558 52.6% $33,145 $12,833 -61% Total Water Revenue $4,604,153 $1,188,916 $3,415,238 25.8% $1,114,636 $1,188,916 6.7% Expenditures Salaries and Wages $1,085,000 $275,338 $809,662 25.4% $225,928 $275,338 22% Personnel Benefits $515,000 $98,506 $416,494 19.1% $96,225 $98,506 2% Supplies $1,354,379 $176,374 $1,178,005 13.0% $197,558 $176,374 -11% Services $1,357,230 $283,468 $1,073,763 20.9% $236,569 $283,468 20% Transfers Out/Deposits $500,412 $231,283 $269,129 46.2% $25,957 $231,283 791% Capital Outlays $220,000 $4,355 $215,645 2.0% $7,330 $4,355 -41% Total Water Expenditures $5,032,021 $1,069,324 $3,962,698 21.3% $789,565 $1,069,324 35.4%

8 Sewer Fund Sewer Fund expenditures are higher in 2021 due to the timing of utility tax payments and carryover expenditures from the 2020 Wastewater Treatment Plant Reuse Water Pump Skid Replacement Project. Salaries and benefits will be adjusted in the July report to correct an error of reporting medical benefits in salaries.

2021/2022 % Thru June Thru June Sewer Fund Budget Actual Remaining Collected 2020 2021 % ∆ Revenue Sewer Charges $5,532,978 $1,591,252 $3,941,726 28.8% $1,510,220 $1,591,252 5% Side Sewer Connection Fees $4,000 $1,600 $2,400 40.0% $1,950 $1,600 -18% Other - Interest & Misc. $19,626 $15,789 $3,837 80.4% $22,756 $15,789 -31% Total Sewer Revenue $5,556,604 $1,608,641 $3,947,963 29.0% $1,534,925 $1,608,641 4.8% Expenditures Salaries and Wages $1,241,000 $316,199 $924,801 25.5% $297,120 $316,199 6% Personnel Benefits $531,000 $106,991 $424,009 20.1% $120,551 $106,991 -11% Supplies $144,903 $20,427 $124,476 14.1% $22,627 $20,427 -10% Services $1,858,950 $479,796 $1,379,154 25.8% $455,735 $479,796 5% Transfers Out/Deposits $105,872 $31,209 $74,663 29.5% $34,754 $31,209 -10% Capital Outlays $480,000 $120,406 $359,594 25.1% $41,668 $120,406 189% Total Sewer Expenditures $4,361,725 $1,075,028 $3,286,697 24.6% $972,454 $1,075,028 10.5%

Storm Drainage Fund Storm Drainage expenditures are higher in 2021 due to the timing of utility tax payments and a change in the way the City’s annual insurance payment is allocated to departments. Salaries and benefits will be adjusted in the July report to correct an error of reporting medical benefits in salaries.

2021/2022 % Thru June Thru June Storm Drainage Fund Budget Actual Remaining Collected 2020 2021 % ∆ Revenue Storm Drainage Fees $1,721,182 $503,351 $1,217,831 29.2% $470,449 $503,351 7% Storm Drainage Inspection $0 $0 $3,500 WS DOE NPDES Permit Grant $50,000 $19,950 $30,050 39.9% $14,740 $19,950 35% Other - Interest & Misc. $6,241 $1,315 $4,926 21.1% $7,126 $1,315 -82% Total Storm Revenue $1,777,423 $524,617 $1,252,806 29.5% $495,814 $524,617 5.8% Expenditures Salaries and Wages $674,000 $162,236 $511,764 24.1% $152,131 $162,236 7% Personnel Benefits $304,000 $57,891 $246,109 19.0% $65,835 $57,891 -12% Supplies $17,766 $5,991 $11,775 33.7% $4,157 $5,991 44% Services $772,975 $143,999 $628,976 18.6% $92,848 $143,999 55% Transfers Out/Deposits $63,431 $19,603 $43,828 30.9% $17,256 $19,603 14% Capital Outlays $80,000 $0 $80,000 0.0% $0 $0 Total Storm Expenditures $1,912,172 $389,720 $1,522,452 20.4% $332,227 $389,720 17.3%

Utility Past Due On March 18, 2020, Governor Inslee called on all public utilities to suspend water shut offs and to waive late fees on utilities. The suspension will be lifted on September 30, 2021. In response, Council has approved the use of $47,000 of the City’s American Rescue Plan Act funds to help residents who have been negatively impacted by the COVID 19 pandemic. The City will also offer residents who are behind on utility payments a 12-month payment plan.

Below is a table that shows effects of the suspension on past due utility accounts as of June 30, 2021, compared to the end of June of 2019 and 2020.

60 to 90 Days Past Due 90 to 120 Days Past Due Over 120 Days Past Due Total Amount # of Accounts Total Amount # of Accounts Total Amount # of Accounts 2019 $1,404 18 $227 4 $845 3 2020 $8,685 75 $4,062 42 $9,701 29 2021 $15,830 131 $9,293 81 $43,686 73

9 Ending Fund Balance At the end of June 2021, the City had an ending fund balance of $30,136,208, an increase of $4,085,188 over its beginning fund balance. This includes revenue from the new American Rescue Plan Act, of which the first half of the City’s allocation was received in June. Also, note that the beginning fund balance of the Parks CIP fund was increased by $900,037 to show the December 2020 balance of an escrow account with park impact fee revenue the City holds per a developer agreement. If agreed upon park improvements are made, the developer will draw down the escrow account and the City will report the withdrawal as a Parks CIP Fund expenditure.

CITY OF DUVALL 2021-2022 REVENUE AND EXPENDITURE SUMMARY Biennium to Date as of June 30, 2021 Actual Beginning Fund Description Fund Balance Revenues Expenditures Fund Balance Net Change 001 General Fund $ 2,724,136 $ 2,988,898 $ 2,413,336 $ 3,299,698 $ 575,561 576,264 General Fund 002 Contingency Fund 553,937 703 - 554,640 703 101 Street Fund 194,239 255,926 257,919 192,246 (1,993) 102 Transportation Benefit District 174,891 180,180 12,600 342,471 167,580 104 Building and Permitting Fund 1,171,216 601,339 633,687 1,138,868 (32,348) Special Revenue 1,337,566 105 American Rescue Plan Act - 1,131,526 - 1,131,526 1,131,526 Funds 106 Big Rock Ball Park Maintenance 125,566 125,263 52,516 198,313 72,747 107 Sensitive Areas Mitigation Fund 40,593 54 - 40,646 54 206 2016 LTGO - Main St Debt Svc 21,501 243,629 57,247 207,883 186,382 186,382 Debt Svc Fund 303 Facilities CIP Fund - - - - - 304 Real Estate Excise Tax Fund 1 1,523,820 253,487 30,346 1,746,961 223,141 305 Real Estate Excise Tax Fund 2 1,356,702 253,219 99,920 1,510,001 153,299 413,476 Capital Project 306 Main Street Improvement 545,051 718 33,314 512,455 (32,595) Funds 307 Street CIP Fund 1,444,492 79,525 44,405 1,479,612 35,120 308 Parks CIP Fund * 1,812,825 70,169 35,657 1,847,337 34,512 401 Water Fund 3,542,199 1,188,916 1,069,324 3,661,791 119,592 402 Sewer Fund 3,498,513 1,608,641 1,075,028 4,032,126 533,613 404 Storm Drainage Fund 958,719 524,617 389,720 1,093,615 134,897 Proprietary 1,452,174 407 Water CIP Fund 2,547,828 521,260 102,986 2,966,102 418,274 Funds 408 Sewer CIP Fund 2,464,299 385,274 187,021 2,662,551 198,252 409 Storm Drainage CIP Fund 570,895 50,076 2,530 618,441 47,546 501 Equipment Fund 400,287 182,183 104,587 477,883 77,596 Internal Service 502 IT Fund 227,917 233,971 205,550 256,337 28,421 119,326 Funds 503 Building Maintenance Fund 151,394 142,315 129,006 164,703 13,309 TOTAL $ 26,051,020 $ 11,021,887 $ 6,936,699 $ 30,136,208 $ 4,085,188

$ 37,072,907 = $ 37,072,907

10 Revenues As of the end of June 2021, approximately 27% of budgeted 2021/2022 biennial revenues had been collected. The cause for significant changes in revenues to most funds can be found on the preceding pages. The decrease in 2021 Street Fund (Fund 101) revenue is due to grant revenue received in 2020 for the LED Streetlight Conversion Project. An increase in 2021 revenues over 2020 in the Big Rock Ball Fields Fund is due to 50% of park levy proceeds being receipted in the Fund for the first time, which also caused the decrease in the Parks CIP Fund, which received 100% of the park levy proceeds in 2020. The increase in the Water CIP Fund is due to a budgeted transfer from the Water Operating Fund. Increases in revenue in the Internal Services Funds (500 Funds) over 2020 are mainly due to an increase in the amount charged to each department for internal services. CITY OF DUVALL 2021-2022 BUDGET vs ACTUAL - REVENUES Biennium to Date as of June 30, 2021 2021/2022 BTD BTD % Thru June Thru June Fund Description Budget BTD Actual Difference Collected 2020* 2021 % ∆ $ ∆ 001 General Fund $ 10,977,775 $ 2,988,898 $ 7,988,877 27% $ 2,589,723 $ 2,988,898 15% $ 399,174 002 Contingency Fund 2,657 703 1,954 26% 67,342 703 -99% (66,639) 101 Street Fund 1,072,537 255,926 816,610 24% 460,503 255,926 -44% (204,577) 102 Transportation Benefit District 808,977 180,180 628,798 22% 17,085 180,180 955% 163,095 104 Building and Permitting Fund 3,874,438 601,339 3,273,100 16% 721,153 601,339 -17% (119,814) 105 American Rescue Plan Act - 1,131,526 (1,131,526) - 1,131,526 1,131,526 106 Big Rock Ball Park Maintenance 372,608 125,263 247,345 34% 43,213 125,263 190% 82,050 107 Sensitive Areas Mitigation Fund 292 54 238 18% 328 54 -84% (274) 206 2016 LTGO - Main St Debt Svc 974,914 243,629 731,285 25% 235,241 243,629 4% 8,388 303 Facilities CIP Fund 870,000 - 870,000 0% - - - 304 Real Estate Excise Tax Fund 1 791,423 253,487 537,936 32% 130,819 253,487 94% 122,668 305 Real Estate Excise Tax Fund 2 790,035 253,219 536,816 32% 129,257 253,219 96% 123,962 306 Main Street Improvement 8,395 718 7,676 9% 9,429 718 -92% (8,710) 307 Street CIP Fund 1,775,532 79,525 1,696,007 4% 20,688 79,525 284% 58,837 308 Parks CIP Fund 606,851 70,169 536,681 12% 110,037 70,169 -36% (39,868) 401 Water Fund 4,604,153 1,188,916 3,415,238 26% 1,114,636 1,188,916 7% 74,279 402 Sewer Fund 5,556,604 1,608,641 3,947,963 29% 1,534,925 1,608,641 5% 73,716 404 Storm Drainage Fund 1,777,423 524,617 1,252,806 30% 495,814 524,617 6% 28,803 407 Water CIP Fund 1,986,356 521,260 1,465,096 26% 356,309 521,260 46% 164,951 408 Sewer CIP Fund 2,131,361 385,274 1,746,087 18% 466,926 385,274 -17% (81,652) 409 Storm Drainage CIP Fund 332,311 50,076 282,235 15% 55,417 50,076 -10% (5,342) 501 Equipment Fund 702,108 182,183 519,924 26% 95,798 182,183 90% 86,385 502 IT Fund 923,238 233,971 689,267 25% 142,962 233,971 64% 91,009 503 Building Maintenance Fund 236,478 142,315 94,164 60% 67,776 142,315 110% 74,539 TOTAL $ 41,176,465 $ 11,021,887 $ 30,154,577 27% $ 8,865,379 $11,021,887 24% $ 2,156,508 *Building and permitting revenues have been pulled out of the General Fund and are shown in the new Building and Permitting Fund for trending purposes. Revenue from School Impact fees, which is now reported in the Building and Permit Fund, has been pulled out of the Deposit Fund for 2020 and shown for trending purposes.

11 Expenditures As of the end of June 2021, the City had expended 17% of its budgeted biennial expenditures. Year to date expenditures through June 2020 were higher than in June 2021 in the Street Fund due to the Batten Road and LED Streetlight Conversion projects. Year to date expenditures were higher year to date in 2021 compared to 2020 due to the following: in the Building and Permitting Fund, impact fee payments to the School District. In the IT Fund, the first payment for implementation of the City’s new financial and permitting software, and in the Building Maintenance Fund, expenditures related to the 2020 carryover Depot Deck Replacement Project.

CITY OF DUVALL 2021-2022 BUDGET vs ACTUAL - EXPENDITURES Biennium to Date as of June 30, 2021 2021/2022 BTD % Thru June Thru June Fund Description Budget BTD Actual BTD Difference Spent 2020* 2021 % ∆ $ ∆ 001 General Fund $ 11,142,253 $ 2,413,336 $ 8,728,917 22% 2,385,931 2,413,336 1% $ 27,405 002 Contingency Fund - - - - - $ - 101 Street Fund 1,144,077 257,919 886,158 23% 484,090 257,919 -47% $ (226,171) 102 Transportation Benefit District 573,000 12,600 560,400 2% - 12,600 $ 12,600 104 Building and Permitting Fund 3,642,395 633,687 3,008,709 17% 422,948 633,687 50% $ 210,739 105 American Rescue Plan Act - - - - $ - 106 Big Rock Ball Park Maintenance 308,326 52,516 255,810 17% 48,497 52,516 8% $ 4,019 107 Sensitive Areas Mitigation Fund 31,200 - 31,200 0% - - $ - 206 2016 LTGO - Main St Debt Svc 974,914 57,247 917,667 6% 58,201 57,247 -2% $ (955) 303 Facilities CIP Fund 870,000 - 870,000 0% - - $ - 304 Real Estate Excise Tax Fund 1 451,482 30,346 421,136 7% 40,749 30,346 -26% $ (10,403) 305 Real Estate Excise Tax Fund 2 678,982 99,920 579,062 15% 40,865 99,920 145% $ 59,055 306 Main Street Improvement 544,000 33,314 510,686 6% 5,783 33,314 476% $ 27,530 307 Street CIP Fund 1,720,778 44,405 1,676,373 3% 79,486 44,405 -44% $ (35,081) 308 Parks CIP Fund 378,982 35,657 343,325 9% - 35,657 $ 35,657 401 Water Fund 5,032,021 1,069,324 3,962,698 21% 789,565 1,069,324 35% $ 279,759 402 Sewer Fund 4,361,725 1,075,028 3,286,697 25% 972,454 1,075,028 11% $ 102,574 404 Storm Drainage Fund 1,912,172 389,720 1,522,452 20% 332,227 389,720 17% $ 57,493 407 Water CIP Fund 2,634,311 102,986 2,531,325 4% 96,692 102,986 7% $ 6,295 408 Sewer CIP Fund 1,332,799 187,021 1,145,778 14% 172,511 187,021 8% $ 14,510 409 Storm Drainage CIP Fund 359,282 2,530 356,753 1% 617 2,530 310% $ 1,913 501 Equipment Fund 558,465 104,587 453,878 19% 149,732 104,587 -30% $ (45,145) 502 IT Fund 992,273 205,550 786,722 21% 88,620 205,550 132% $ 116,930 503 Building Maintenance Fund 236,205 129,006 107,199 55% 63,314 129,006 104% $ 65,692 TOTAL $ 39,879,644 $ 6,936,699 $ 32,942,945 17% $ 6,232,282 $ 6,936,699 11.3% $ 704,417 *Building and permitting expenditures have been pulled out of the General Fund and are shown in the new Building and Permitting Fund for trending purposes Remittances of School Impact fees to the School District are now reported in the Building and Permit Fund, and been pulled out of the Deposit Fund for 2020 for trending purposes.

12 The City’s long-term debt outstanding balances are shown in the table below. Limited-Term General Obligation (LTGO) Bonds interest payments are due twice annually, on the 1st of June and December, and the principal amount is due once a year on December 1st.

In November of 2019, the City took out a State of Washington Local Program loan to purchase a dump truck. Interest payments are due twice annually on June 1st and December 1st, and a principal payment is due annually on June 1st.

Both principal and interest payments for the Wastewater Treatment Plant (WWTP) construction loan are due twice annually, on June 30th and December 30th.

CITY OF DUVALL Debt Service as of 06/30/2021 2017 General Obligation Bonds Remaining 2021/2022 Funding Source(s) Date of Remaining Street Final 2021/2022 Property Impact Description Payment Principal Interest Total Payment Tax Levy REET I REET II Fees Big Rock Ball Field 12/1/2025 $1,055,000 $67,168 $1,122,168 $439,424 $439,424

Main Street Project 12/1/2031 $2,320,000 $332,540 $2,652,540 $457,046 $152,349 $152,349 $152,349

State of WA Local Program Remaining 2021/2022 Funding Source(s) Internal Date of Remaining Service Final 2021/2022 Charges to Description Payment Principal Interest Total Payment Fund 501 Dump Truck Purchase 6/1/2029 $119,690 $28,459 $148,149 $21,197 $21,197

Utility Revenue Debt Remaining 2021/2022 Funding Source(s) Sewer Date of Remaining General Final 2021/2022 Facility Utility Revenue Debt Payment Principal Interest Total Payment Charges SRF WWTP Construction Loan 6/30/2025 $1,323,275 $14,946 $1,338,221 $501,833 $ 501,833

13 Reserve Balance Requirements Reserve balance requirements are shown in the table below. Amounts budgeted are for the two-year biennium and amounts required are as of January 1, 2021, except for the Big Rock Ball Park Fund, which includes 50% of 2021 activity fees. All 2021 required reserve balances have been met.

Ending Fund Fund # Fund Description Budgeted Required Balance Notes 001 General Fund $ 880,794 $ 893,103 $ 3,299,698 17% per Resolution 04-04 Internally Restricted 001 Disaster Relief 25,000 25,000 Established by City Council 001 Internal Restricted- Other 22,408 22,412 Drug Enforcement & Mitigation Maximum allowed is 37.5% of Assessed Value (AV) - 002 Contingency 494,814 574,104 554,640 $1,530,945,148 in 2021 Resolution 18-16 - 50% of ballfield revenue held for turf 106 Big Rock Ball Park Fund 126,000 78,025 198,313 replacement 401 Water Utility 749,132 704,912 3,661,791 Resolution 04-04. Increased by CPI-U every Jan. 1 402 Sewer Utility 998,844 996,149 4,032,126 Resolution 04-04. Increased by CPI-U every Jan. 1 402 Sewer Utility, DOE Loan 335,000 335,000 Annual loan payment in reserve. 404 Storm Drain 312,139 308,501 1,093,615 Resolution 04-04. Increased by CPI-U every Jan. 1 501 Equipment Fund 200,000 200,000 477,883 Resolution 04-04 - flat amount in reserve Total $ 4,144,130 $ 4,137,206 $ 13,318,067

14 City of Duvall Investments

At the end of June 30, 2021, the City held the following investments: Description Amount June Interest Rate % of Total Washington Federal Public Funds Account $1,974,761 0.10% 7% State Local Government Investment Pool (LGIP) $17,365,774 0.08% 63% Pacific Premier – Public Interest Checking $4,996,537 0.09% 18% Government Securities $3,297,703 Variable/2.25% 12% Total $27,634,775 100% Interest rates continued to decline during the second quarter of 2021. LGIP interest rates fell from 0.11% to 0.08%. The City’s public interest checking account with Pacific Premier Bank (formerly Opus Bank) decreased from 0.14% to 0.09% and the City’s public funds savings account with Washington Federal held at 0.10%.

No bonds matured in the second quarter of 2021. The City holds the following government securities: Purchase Coupon Maturity Investment Cost Date Rate Date Federal Farm Credit Bank - 3133EJF61 Oct. 2019 $2,300,000 Floating Oct. 2021 Federal National Mortgage Assoc. - 3135GOV59 April 2019 $997,703 2.25% April 2022

The City earned $18,018 in investment interest from April 1, 2021 through June 30, 2021.

As of June 30, 2021, the City’s total cash balance was as follows: Description Amount Investments $27,634,775 Checking Account* $1,103,097 First American Trust Escrow Account $900,483 Drug Seizure Account & Petty Cash $10,860 Total $29,649,215 *Balance does not include deposits in transit or outstanding checks The cash balance was $3,826,391 more than the first quarter of 2021. More than half of the increase is due to the following: • The addition of the First American Trust Escrow account, which, per agreement, holds park impact fees until developer improvements are complete • The receipt of the City’s first half of its American Rescue Plan Act allocation in the amount of $1,131,526

15 Accrued Payroll Liabilities as of 6/30/2021 Below are the hours and dollar value of outstanding accrued leave. The dollar value below is simply the value of accrued hours without benefits and does not consider the maximum payouts per category allowed by DMC or bargaining unit.

Outstanding Comp Time Earned Outstanding Vacation Department Hours Dollar Value Department Hours Dollar Value Finance and Admin 31.25 $1,039 Finance and Admin 697.68 $26,024 Community Development 121.37 $4,301 Directors 952.25 $61,014 Engineering 89.86 $4,162 Community Development 866.92 $34,703 Police 225.63 $9,174 Engineering 971.59 $44,597 Public Works Maintenance 283.35 $10,394 Police 2,105.17 $88,591 Wastewater Treatment Plant 0.25 $12 Public Works Maintenance 1,255.20 $45,542 Totals 751.71 $29,081 Wastewater Treatment Plant 673.57 $29,064 Totals 7,522.38 $329,535

Outstanding Banked Holiday Outstanding Sick Time Department Hours Dollar Value Dollar Dollar Finance and Admin 36 $1,218 Department Hours Value* Value Community Development 6 $288 Finance and Admin 779.94 $6,586 $26,345 Engineering 0 $0 Directors 1,347.50 $21,156 $84,626 Police 0 $0 Community Development 1,268.32 $12,701 $50,803 Public Works Maintenance 0 $0 Engineering 1,461.99 $17,587 $70,349 Wastewater Treatment Plant 0 $0 Police 2,622.91 $27,976 $111,905 Totals 42 $1,506 Public Works Maintenance 1,976.71 $18,825 $75,300

Wastewater Treatment Plant 1,207.33 $13,566 $54,265 Totals 10,664.70 $118,398 $473,593

*Sick leave is paid out at 25%

16 Capital Improvement Projects Below is a table that shows the 2021 budget for Capital Improvement Projects (CIP), project carryover from the prior biennium, any adjustments to CIP approved by Council in 2021, 2021/2022 expenditures to date, CIP expenditures from the prior biennium, and the remaining budget.

Biennium to Date CIP Expenditures (updated thru 06/30/2021) Amendment Needed Council Remaining 2021/2022 2021/2022 Approved Adjusted 2021/2022 2021/2022 Prior Approved Remaining Fund Biennial Budget Carryover Increase Budget Exp. to Date Exp. Biennium Exp. Budget Budget Facilities CIP 303 WWTP Office & Garage Remodel 303 $ 660,000 $660,000 $0 $660,000 $660,000 $660,000 City Hall Roof Replacements 303 $ 25,000 $25,000 $0 $25,000 $25,000 $25,000 City Hall Windows Replacement Project 303 $ 36,000 $36,000 $0 $36,000 $36,000 $36,000 City Hall Exterior Paint Project 303 $ 15,000 $15,000 $0 $15,000 $15,000 $15,000 City Hall HVAC 303 $ 30,000 $30,000 $0 $30,000 $30,000 $30,000 Police Department Int./Ext. Paint 303 $ 30,000 $30,000 $0 $30,000 $30,000 $30,000 Police HVAC 303 $ 30,000 $30,000 $0 $30,000 $30,000 $30,000 Police Station Roof Replacement 303 $ - $ 36,509 $36,509 $0 $36,509 $36,509 $36,509 Police Building Renovation - Additional 303 $ - $ 68,351 $68,351 $0 $68,351 $68,351 $68,351 Police Flooring Replacement Project 303 $ 44,000 $44,000 $0 $44,000 $44,000 $44,000 Total Facilties CIP $ 870,000 $0 $104,860 $974,860 $0 $974,860 $0 $974,860 $974,860 Street CIP 3rd Ave NE Roadway and Sidewalk Imp. 307 $ 946,000 $946,000 $0 $946,000 $946,000 $946,000 142nd Sidewalk Extension 307 $ 653,296 $653,296 $0 $653,296 $653,296 $653,296 Main St. Final Const. & Beautification 306 $ 284,000 $284,000 $33,314 $250,686 $284,000 $250,686 Bruett Road Overlay 102 $ 300,000 $300,000 $12,600 $287,400 $300,000 $287,400 275th Ave Sidewalk -Carryover (Retainage) 307 $ - $ 29,589 $29,589 $14,059 $15,530 $ 324,360 $353,949 $15,530 Roney Road Overlay 102 $ 273,000 $ 20,736 $293,736 $0 $293,736 $293,736 $293,736 Total Street CIP $ 2,456,296 $ 29,589 $ 20,736 $2,506,621 $59,973 $2,446,648 $324,360 $2,830,981 $2,446,648 Parks CIP Projects 308 $ 20,000 $20,000 $0 $20,000 $20,000 $20,000 Taylor Park Wall Extension 308 $ 15,000 $15,000 $0 $15,000 $15,000 $15,000 Big Rock Play Area Sun Shade & Safety 308 $ 30,000 $30,000 $0 $30,000 $30,000 $30,000 Taylor Landing Electrical 308 $ 10,000 $10,000 $0 $10,000 $10,000 $10,000 Judd Park Sun Shade 308 $ 35,000 $35,000 $0 $35,000 $35,000 $35,000 Big Rock Park - Security Camera 308 $ 25,000 $25,000 $0 $25,000 $25,000 $25,000 Big Rock Park - Field 2 3rd Base Turf Rep. 308 $ 10,000 $10,000 $0 $10,000 $10,000 $10,000 Concession Improvements 308 $ 5,000 $5,000 $0 $5,000 $5,000 $5,000 Depot Deck Repl. - Budgeted Carryover 503 $ 107,500 $ - $107,500 $95,268 $12,232 $ 66,549 $157,000 -$4,818 Park Property Purchase - Carryover 308 $ - $ 12,975 $12,975 $5,311 $7,664 $ 732,025 $745,000 $7,664 Total Parks CIP $ 257,500 $ 12,975 $ - $270,475 $100,580 $169,895 $798,574 $1,052,000 $152,846 Sewer CIP Inflow & Infiltration Repair 408 $ 615,000 $615,000 $0 $615,000 $615,000 $615,000 UV System Replacement 402 $ 300,000 $300,000 $0 $300,000 $300,000 $300,000 Alley CIPP work 402 $ - $0 $0 $0 $0 $0 Blower Repair/Replace 402 $ 30,000 $30,000 $0 $30,000 $30,000 $30,000 Mobile Pump Unit 402 $ 150,000 $150,000 $0 $150,000 $150,000 $150,000 Reuse Water Pump Skid - Carryover* 402 $ - $ 108,670 $108,670 $108,768 $120,406 $ - $108,670 -$98 Total Sewer CIP $ 1,095,000 $108,670 $0 $1,203,670 $108,768 $1,094,902 $0 $1,203,670 $1,094,902 Water CIP Sensus FlexNet System 401 $ 220,000 $220,000 $4,355 $215,645 $220,000 $215,645 Tolt 2 supply line (R4) 407 $ 1,854,000 $1,854,000 $8,887 $1,845,113 $1,854,000 $1,845,113 F8 Water System Telemetry 407 $ 388,000 $388,000 $0 $388,000 $388,000 $388,000 Kennedy Watermain - Carryover 407 $ - $ 21,743 $21,743 $21,602 $141 $ 478,257 $500,000 $141 F3, F4 Reservoir Recoating & Inlet/Outlet 407 $ 280,000 $280,000 $0 $280,000 $280,000 $280,000 Total Water CIP $ 2,742,000 $21,743 $0 $2,763,743 $34,844 $2,728,899 $478,257 $3,242,000 $2,728,899 Storm Drainage CIP Storm Facility Retrofits 404 $ 40,000 $40,000 $0 $40,000 $40,000 $40,000 Small Neighborhood Projects 404 $ 40,000 $40,000 $0 $40,000 $40,000 $40,000 Miller Street Conveyance Imprv. 409 $ 155,000 $155,000 $0 $155,000 $155,000 $155,000 Total Storm Drainage CIP $ 235,000 $0 $0 $235,000 $0 $235,000 $0 $235,000 $235,000

Total 2021/2022 CIP $7,655,796 $172,977 $125,596 $7,954,369 $304,165 $7,650,204 $1,601,191 $9,538,511 $7,633,155 *Construction contract and expenditures only 17