HomeMy WebLinkAboutCC Council Packet 04182023
April 4, 2023 Port Angeles City Council Meeting Page 1
April 18, 2023
City of Port Angeles Council Meeting Agenda
This meeting will be conducted as a hybrid meeting. In hybrid meetings, members of the public, Council members, and City sta ff
have the option to attend the meeting in person, in Council chambers at City Hall located at 321 East 5 th Street, Port Angles, or
remotely via telephone or video link.
The Mayor may determine the order of business for a particular City Council meeting. The agenda should be arranged to best serve
the needs and/or convenience of the Council and the public. The Mayor will determine time of break. Hearing devices are available
for those needing assistance. The items of business for regular Council meetings may include the following:
A. Call to Order – Regular Meeting at 6:00 p.m.
B. Roll Call, Pledge of Allegiance
Ceremonial Matters, Proclamations & Employee Recognitions
1. Port Angeles Police Department Life Saving Recognition
2. Earth Day Proclamation
C. Public Comment
The City Council desires to allow the opportunity for Public Comment. However, the business of the City must proceed in an or derly
and timely manner. Visit https://www.cityofpa.us/Live-Virtual-Meetings to learn how to participate during public comment and or
watch the meeting live. Written public comments can be submitted to: council@cityofpa.us, comments will not be read aloud.
To provide pre-recorded messages to the City Council by phone, please call 360 -417-4504. Messages received will be made a part of
the final record. Comments should be received by 2:00 p.m. Tuesday, April 18, 2023.
For audio only please call: 1-844-992-4726
Use access code: 2559 734 0140
Webinar Password: hQc8jsHYb63
Once connected, press *3 to raise your virtual hand if you wish to make a comment or public testimony. You will be notified when it
is your turn to speak. This access code is good for the April 18, 2023 meeting only.
If you are joining in through the Webex link:
https://cityofpa.webex.com/cityofpa/j.php?MTID=m37bb437c94f0b67f0277460ec162876f
and wish to make a comment or public testimony, please use the “raise your hand” feature in Webex. You will be notified when it is
your turn to speak.
Members of the public may address the City Council at the beginning and end of any Regular Meeting under "Public Comment."
During the "Public Comment" portion of the meeting, individ uals may speak to agenda items, except those scheduled for a Public
Hearing. The City Council desires to allow the opportunity for Public Comment. However, the business of the City must proceed in
an orderly, timely manner. At any time, the presiding officer, in the presiding officer's sole discretion, may set such reasonable limits
as are necessary to prevent disruption of other necessary business. At its most restrictive, Public Comment shall be limited to a total
of 15 minutes for the first Public Comm ent period and shall be concluded not later than 9:45 for the second Public Comment period.
Individuals may speak for three (3) minutes or less, depending on the number of people wishing to speak. If more than 20 peop le are
signed up to speak each speaker may be allocated two (2) minutes.
Individuals who are residents of the City or own busine sses within the City will be called to speak first, with preference given to those
who wish to speak to an item on the meeting’s agenda. If time remains, the presiding officer will call other individuals wish ing to
April 4, 2023 Port Angeles City Council Meeting Page 2
PUBLIC HEARINGS
Public hearings are set by the City Council in order to meet legal requirements. City Council may set a public hearing in order to
receive public input prior to making decisions which impact citizens. Certain matters may be controversial and City Council may
choose to seek public opinion through the public hearing process.
speak, generally in the order in which they have signed in. If time is available, the presiding officer may call for additional unsigned
speakers.
Persons speaking shall state their name, whether they reside within the City limits, whether they have any other pertinent co nnection
to the City, and whether they are appearing as the representative of an organization. Excerpts: Council Rules of Procedure Section 12
D. Late Items
To be placed on this or future agendas, including any executive session needed during or at the end of the meeting.
E. Consent Agenda | Approve
1. City Council Minutes of April 4, and April 10 2023 ....................................................................................................... E-1
2. Expenditure Report: From March 25, 2023 to April 7, 2023 in the amount of $1,809,402.62 ........................................ E-5
3. Glass Recycling Transport Contract / Authorize the City Manager to sign a contract for the transport of recyclable glass from
the Port Angeles Transfer Station to a Glass Recycle Processor in an annual amount not to exceed $60,000 . ............. E-22
F. Public Hearings | 6:30 p.m. or Soon Thereafter .................................................................................................. None
G. Ordinances Not Requiring Council Public Hearings
1. 2023 Budget Amendment #1 / Conduct 2nd Reading / Adopt Ordinance ........................................................................ G-1
2. Council Compensation Draft Ordinances / Review and Discussion ................................................................................ G-8
H. Resolutions Not Requiring Council Public Hearings
1. Resolution updating Section 9.13 of the City’s Financial Policies Regarding Leases / Pass Resolution ........................... H-1
I. Other Considerations .................................................................................................................................................... None
J. Contracts & Purchasing ............................................................................................................................................... None
K. Council Reports
L. Information
City Manager Reports:
1. Monthly Update on Past Due Utility Accounts ............................................................................................................... L-1
2. Work Session Questionnaire / Verbal Update
3. Update on Elwha Watershed DNR Timber Sales / Update
M. Second Public Comment
Follow the instructions from the first public comment period.
Adjournment
o P
W 1�
PROCLAMATION
Recognizing
EARTH DAY - April 22, 2023
WHEREAS, Earth Day began as an educational effort on environmental issues. The efforts were led by Senator
Gaylord Nelson and the original date was chosen as April 22°1 to coincide with spring break and
final exams to promote and encourage student participation. His efforts to raise public awareness
are why now, each year, we recognize the day as a reminder it is our responsibility to preserve our
environment for future generations; and
WHEREAS, this year the theme is "Invest In Our Planet, " which highlights the importance of dedicating our
time, resources and energy towards addressing climate change and other environmental issues; and
WHEREAS, the City of Port Angeles promotes stewardship for the earth through environmentally responsible
actions such as the adoption of the first -ever Port Angeles Climate Resiliency Plan. This plan,
informed by community input, establishes specific actions that we can take to reduce our
vulnerability and increase our resilience to sea level rise, drought, and other impacts of climate
change; and
WHEREAS, the City continues to incorporate tools for developers to promote smart growth, low -impact
development, preservation of open space, efficient use of land and the reduction of sprawl, as well
as encourages environmentally responsible construction and development city-wide; and
WHEREAS, the City regularly promotes waste reduction and recycling, provides for proper disposal of hazardous
waste, and provides numerous rebates and incentives to encourage energy efficient technology in
residential, commercial, and industrial uses; and
WHEREAS, this Earth Day, let us take a moment to appreciate the beauty and importance of our natural
environment. The responsibility for preserving that environment is shared by the entire community,
and the City of Port Angeles acknowledges the efforts of countless individuals, businesses,
government and non-profit agencies who work to sustain the productive capacity of our forest,
marine, agricultural and atmospheric eco-systems for future generations; and
WHEREAS, with that, the City calls upon each resident to take steps towards change, with the knowledge and
confidence the City is also doing so. It is our collective responsibility to protect our natural resources
and invest in our planet's future. And for those who are already making daily environmentally
conscious decisions, we encourage you to lead the way for others.
NOW, THEREFORE, I, Kate Dexter, ON BEHALF OF THE CITY COUNCIL OF PORT ANGELES, do
hereby proclaim April 22, 2023, as Earth Day in the City of Port Angeles, and encourage all residents to participate
in this important effort by taking actions in their daily lives to promote the resilience and sustainability of the Port
Angeles community.
Kate Dexter, Mayor
April 18, 2023
CITY COUNCIL SPECIAL MEETING
Port Angeles, Washington
March 28, 2023
This meeting was conducted as a hybrid meeting.
CALL TO ORDER SPECIAL MEETING
Mayor Dexter called the special meeting of the Port Angeles City Council to order at 5:00 p.m.
Members Present: Mayor Dexter (virtual participation), Deputy Mayor Meyer (virtual participation), Council
Members Carr, McCaughan, Miller, and Suggs.
Members Absent: Council member Schromen-Wawrin.
Staff Present: City Manager West, Attorney Bloor, Clerk Martinez-Bailey, C. Delikat, B. Smith, S. Carrizosa, M.
Sanders, M. Healy, N. Gollub.
STRATEGIC PLANNING WORK SESSION
Mayor Dexter opened the meeting and spoke to the purpose of the meeting. City Manager Nathan West stated the
slides to be presented, would highlight what was accomplished under the 2021-2022 plan, in addition, he stated a
portion of the presentation addressed potential revenue sources and said Council would have the opportunity to ask
clarifying questions. Manager West presented slides outlining the four Issues of Critical Importance as identified in
the original plan and spoke to the need for the policy to be updated and in-line with the Council’s most important
policy initiatives. Finance Director Sarina Carrizosa presented slides that outlined potential revenue options to be
discussed during the upcoming April work session. Director Carrizosa presented options that require voter approval
and those that do not and stated it would be helpful for Council to provide a narrow list of options to pursue.
Manager West expressed the importance for early action from Council in consideration of the preparation of the
2024 Budget.
Council member Meyer left the meeting at what 5:55 p.m.
ADJOURNMENT
Mayor Dexter adjourned the meeting at 6:00 p.m.
_____________________________________ _______________________________
Kate Dexter, Mayor Kari Martinez-Bailey, City Clerk
April 18, 2023 E - 1
CITY COUNCIL MEETING
Port Angeles, Washington
April 4, 2023
This meeting was conducted as a hybrid meeting.
CALL TO ORDER-REGULAR MEETING
Mayor Dexter called the regular meeting of the Port An geles City Council to order at 6:00 p.m.
ROLL CALL
Members Present: Mayor Dexter, Deputy Mayor Meyer (attending virtually), Council Members Carr, McCaughan,
Miller, Schromen-Wawrin and Suggs.
Members Absent: None.
Staff Present: Assistant City Manager Goings, Attorney Bloor, Clerk Martinez-Bailey, C. Delikat, K. Dubuc, B.
Smith, S. Carrizosa, M. Healy & N. Gollub.
PLEDGE OF ALLEGIANCE
Mayor Dexter led the Pledge of Allegiance to the Flag.
PUBLIC COMMENT
No public comment was received.
CONSENT AGENDA
It was moved by Schromen-Wawrin and seconded by Carr to approve the Consent Agenda to include:
1. City Council Minutes of March 21, 2023 / Approve
2. Expenditure Report: From March 11, 2023 to March 24, 2023 in the amount of $3,206,317.88 / Approve
3. Material Purchase: Electrical Underground Cables / Award a contract to NC Machinery for the purchase
and outfitting of a new Water Division Backhoe in the amount of $282,017.86. 2, allow the City Manager to execute
and administer all agreements necessary for the purchase and outfitting of the backhoe, to make minor
modifications to the purchase contract if necessary, and approve and authorize the City Manager to surplus vehicle
#1756, once the new equipment is placed into service.
Motion carried 7-0.
ORDINANCES NOT REQUIRING COUNCIL PUBLIC HEARINGS
1. Port Angeles Municipal Code Re-Envisioning Title 1
City Attorney William Bloor spoke about the ordinance before Council for a second reading. Council discussion
followed.
Mayor Dexter conducted a second reading of the ordinance by title, entitled,
ORDINANCE NO. ____
AN ORDINANCE of the City of Port Angeles, Washington repealing and replacing Title 1 of the Port Angeles
Municipal Code related to General Provisions.
It was moved by Miller and seconded by McCaughan to:
After the motion was amended, the final motion was adopted.
Adopt the ordinance as read, striking the word servant in the definition of person.
Motion carried 7-0.
1. 2023 Budget Amendment #1
Finance Director Sarina Carrizosa spoke to the agenda item.
Mayor Dexter conducted a first reading of the ordinance by title, entitled,
April 18, 2023 E - 2
PORT ANGELES CITY COUNCIL MEETING – April 4, 2023
Page 2 of 2
ORDINANCE NO. ____
AN ORDINANCE of the City of Port Angeles, Washington, amending the City’s 2023 budget.
The Mayor continued the matter to April 18.
CITY COUNCIL REPORTS
Council member Carr spoke about her first meeting as Chair of the L odging Tax Advisory Committee meeting and
topics discussed.
Council member McCaughan spoke about attendance at a recent Solid Waste Advisory Committee and his election as
Chair of the Committee, and spoke about attendance at Shore Aquatic Center and City Wellness meetings.
Council member Schromen-Wawrin spoke about the National League of Cities Conference and some topics that were
covered, including grants, communication, housing, budgeting, work force, and potential benefits of hosting a Citizen
Municipal Academy,
Council member Miller spoke about time spent with the Homelessness Task Force and spoke about openings on the
Committee, attendance at the recent Serenity House Open House, and a Clallam Transit System Board orientation.
Council member Suggs William Shore meeting and an upcoming event, appointment to the Governor’s task force, the
Murdered and Missing Indigenous Women Task Force,
Mayor Dexter spoke about attendance
No other reports were given.
INFORMATION
Assistant City Manager Goings spoke about changes to the Webex platform and spoke about the upcoming Joint
meeting with the County Commissioners.
SECOND PUBLIC COMMENT
No public comment was received.
ADJOURNMENT
Mayor Dexter adjourned the meeting at 6:38 p.m.
_____________________________________ _______________________________
Kate Dexter, Mayor Kari Martinez-Bailey, City Clerk
April 18, 2023 E - 3
CITY COUNCIL JOINT SPECIAL MEETING
Port Angeles City Council and the Clallam County Commissioners
Joint Special Meeting Agenda
Port Angeles, Washington
April 10, 2023
This meeting was conducted as a hybrid meeting.
CALL TO ORDER JOINT SPECIAL MEETING
Mayor Dexter called the special meeting of the Port Angeles City Council to order at 5:00 p.m.
City Council Members Present: Mayor Dexter, Deputy Mayor Meyer, Council Members Carr, McCaughan, Miller,
Schromen-Wawrin and Suggs.
Council Members Absent: Council member McCaughan .
Clallam County Commissioners Present: Commissioner and Chair Ozias, Commissioners, French and Johnson.
City Staff Present: City Manager West, Assistant City Manager Goings, Attorney Bloor, Clerk Martinez-Bailey, B.
Smith, B. Smith, S. Carrizosa, M. Healy, N. Gollub, K. Hatton, J. Straits.
Clallam County Staff Present: R. Cameron, L. Capps, B. King, and D. Jackson.
JOINT PUBLIC SAFETY BUILDING
Mayor Dexter opened the meeting, then introduced Clallam County Commissioner Ozias who shared the purpose of the
joint meeting between the Council and Commissioners relative to a potential purchase of property as the location for a
future Joint Public Safety Building. Commissioner Ozias turned the meeting over to Clallam County Road Department
Right of Way Agent Linda Capps who then provided background information, and spoke to considerations made by
County staff that led them to a final proposed site. Manager West, spoke about the importance of infrastructure and the
need for discussion on the matter. Council and Commissioner discussion followed.
City and County staff took turns answering questions coming from Council and Commissioners.
City Attorney William Bloor presented slides relative to ownership possibilities. Bloor spoke about the need for a
Comprehensive Agreement between the City and County, that outlines the relationship. He provided the four options
that were considered: Tenants in Common, Joint Tenants, Cooperative Associations, and Condominium. Attorney
Bloor provided the joint recommendations of himself and Deputy Prosecuting Attorney Dee Boughton that the Tenants
in Common option with a signed management agreement would be the best approach.
It was moved by Dexter and seconded by Carr to:
To authorize the City Manager to approve and execute final purchase documents of the Matthews property, taking title
as Tenants in Common with Clallam County in an amount not to exceed 50% of $300,000 and any additional closing
costs as necessary.
Motion carried, 5-1 with Meyer opposed.
It was moved by Johnson and seconded by French
Approve a joint acquisition as tenants in common with the City of Port Angeles of the Matthews short plat number
LDV2022-00033.
Motion carried 3-0.
ADJOURNMENT
Mayor Dexter adjourned the meeting at 6:12 p.m.
_______________________________ _______________________________
Kate Dexter, Mayor Kari Martinez-Bailey, City Clerk
April 18, 2023 E - 4
MEMO
Finance
Department
Sarina Carrizosa
Finance Director
Trina McKee
Senior Accountant
Melody Schneider
Management Accountant
Micah Rose
Financial Analyst
Jane Perkins
Payroll Specialist
Jason Jones
Accountant
Julie Powell
Accounting Technician
Luke Anderson
Accounting Technician
Nicole Blank
Administrative Analyst
Kathyellen Haney
Customer Services Manager
Tracy Rooks
Utility Billing Specialist
WASH I N G T O N, U.S.A.
April 18, 2023
We, the undersigned City Officials of the City of Port Angeles, do hereby
certify that the merchandise and/or services herein specified have been
received and that these claims are approved for payment in the amount of
$1,809,402.62 this 18th day of April, 2023.
Al
Mayor City Manager
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
ADVANTAGE GEAR, INC CLOTHING & APPAREL 001-0000-237.00-00 (27.37)
Division Total:($27.37)
Department Total:($27.37)
MISC TRAVEL LSW-NLC CONGRESSIONAL CIT 001-1160-511.43-10 118.50
Mayor & Council Division Total:$118.50
Legislative Department Total:$118.50
CLALLAM CNTY AUDITOR RECORDING FEE FOR 533895- 001-2023-514.49-90 203.50
Accounting Division Total:$203.50
DATABAR INCORPORATED MISC PROFESSIONAL SERVICE 001-2025-514.41-50 2,701.77
MISC PROFESSIONAL SERVICE 001-2025-514.41-50 2,685.01
MISC PROFESSIONAL SERVICE 001-2025-514.41-50 2,895.99
PAYMENTUS GROUP INC Transaction Fees 001-2025-514.41-50 853.27
Transaction Fees 001-2025-514.41-50 13,300.51
Transaction Fees 001-2025-514.41-50 (13,300.51)
Transaction Fees 001-2025-514.41-50 (853.27)
Transaction Fees 001-2025-514.41-50 853.27
Transaction Fees 001-2025-514.41-50 13,300.51
Customer Service Division Total:$22,436.55
QUADIENT RENTAL/LEASE EQUIPMENT 001-2070-518.45-30 2,178.12
Reprographics Division Total:$2,178.12
Finance Department Total:$24,818.17
DAILY JOURNAL OF COMMERCE COMMUNICATIONS/MEDIA SERV 001-4060-558.41-15 648.00
COMMUNICATIONS/MEDIA SERV 001-4060-558.41-15 1,152.00
Planning Division Total:$1,800.00
MIGHTY PINE BREWING INC FASCADE IMPROVEMENT BUDGE 001-4071-558.49-91 10,000.00
PUBLIC PLAZA LEE PLAZA FACADE RENOVATI 001-4071-558.49-91 20,000.00
Economic Development Division Total:$30,000.00
Community Development Department Total:$31,800.00
ANGELES MILLWORK & LUMBER LUMBER& RELATED PRODUCTS 001-5010-521.48-10 235.58
GALLS CLOTHING & APPAREL 001-5010-521.31-11 272.75
CLOTHING & APPAREL 001-5010-521.31-11 545.39
LEXISNEXIS LIBRARY SERVICES(EXCL 908 001-5010-521.49-01 4,220.19
SOUND PUBLISHING INC ACCT-PD-57708 001-5010-521.31-01 161.20
Police Administration Division Total:$5,435.11
LINCOLN STREET STATION SHIPPING AND HANDLING 001-5021-521.42-10 12.50
Page 1 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 5
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
LINCOLN STREET STATION SHIPPING AND HANDLING 001-5021-521.42-10 18.80
Investigation Division Total:$31.30
ALPINE AUTO INC IMPOUND TOWING SERVICES 2 001-5022-521.49-90 555.49
CURTIS & SONS INC, L N CLOTHING & APPAREL 001-5022-521.31-11 120.77
CLOTHING & APPAREL 001-5022-521.31-11 70.72
GALLS CLOTHING & APPAREL 001-5022-521.31-11 721.34
LEXIPOL LLC LIBRARY SERVICES(EXCL 908 001-5022-521.43-10 3,871.20
LINCOLN STREET STATION SHIPPING AND HANDLING 001-5022-521.42-10 47.39
SHIPPING AND HANDLING 001-5022-521.42-10 63.44
SHIPPING AND HANDLING 001-5022-521.42-10 31.02
SHIPPING AND HANDLING 001-5022-521.42-10 15.54
SHIPPING AND HANDLING 001-5022-521.42-10 62.69
SHIPPING AND HANDLING 001-5022-521.42-10 62.75
OLYMPIC PENINSULA COMMUNITY
CLINIC
MISC PROFESSIONAL SERVICE 001-5022-521.41-50 27,615.34
SCOTT MD, ROBERT L HEALTH RELATED SERVICES 001-5022-521.41-50 200.00
SYSTEMS FOR PUBLIC SAFETY,
INC
HUMAN SERVICES 001-5022-521.41-50 132.00
VIKING SEW & VAC MISCELLANEOUS SERVICES 001-5022-521.31-11 90.30
MISCELLANEOUS SERVICES 001-5022-521.31-11 27.20
MISCELLANEOUS SERVICES 001-5022-521.31-11 48.96
Patrol Division Total:$33,736.15
CRIMINAL JUSTINCE TRAINING
COMM
HUMAN SERVICES 001-5029-521.43-10 100.00
OLYMPIC PRINTERS INC PAPER (OFFICE,PRINT SHOP) 001-5029-521.31-01 572.29
Records Division Total:$672.29
LEGACY TELECOMMUNICATIONS,
INC
EQUIP MAINT & REPAIR SERV 001-5050-521.48-10 693.74
LINDBERG ARCHITECTURE INC ENGINEERING EQUIPMENT 001-5050-521.48-10 570.00
Facilities Maintenance Division Total:$1,263.74
Police Department Total:$41,138.59
ADVANTAGE GEAR, INC CLOTHING & APPAREL 001-6020-522.31-11 338.40
CURTIS & SONS INC, L N CLOTHING & APPAREL 001-6020-522.31-11 226.30
CLOTHING & APPAREL 001-6020-522.31-11 749.57
OLYMPIC STATIONERS INC SUPPLIES 001-6020-522.31-01 84.74
PETEK & ASSOCIATES HEALTH RELATED SERVICES 001-6020-522.41-50 385.00
Page 2 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 6
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
SWAIN'S GENERAL STORE INC CLOTHING & APPAREL 001-6020-522.20-80 102.13
CLOTHING & APPAREL 001-6020-522.20-80 114.10
Fire Suppression Division Total:$2,000.24
A-1 PERFORMANCE, INC BUILDING MAINT&REPAIR SER 001-6050-522.41-50 403.01
FERRELLGAS INC AUTO & TRUCK ACCESSORIES 001-6050-522.47-10 13.06
LEGACY TELECOMMUNICATIONS,
INC
EXTERNAL LABOR SERVICES 001-6050-522.99-10 595.85
SWAIN'S GENERAL STORE INC METALS,BARS,PLATES,RODS 001-6050-522.31-01 12.93
THURMAN SUPPLY DUPLICATE 001-6050-522.48-10 24.09
SUPPLIES 001-6050-522.31-01 7.17
Facilities Maintenance Division Total:$1,056.11
Fire Department Total:$3,056.35
ESRI INC DATA PROC SERV &SOFTWARE 001-7010-532.48-02 22,304.01
OLYMPIC PRINTERS INC SUPPLIES 001-7010-532.31-01 229.57
OLYMPIC STATIONERS INC BADGES & OTHER ID EQUIP. 001-7010-532.31-01 42.43
SHI INTERNATIONAL CORP COMPUTERS,DP & WORD PROC. 001-7010-532.31-60 47.26
Public Works Admin. Division Total:$22,623.27
Public Works & Utilities Department Total:$22,623.27
QUIRING MONUMENTS INC CEMETERY MARKERS 001-8050-536.34-01 684.00
CEMETERY MARKERS 001-8050-536.34-01 835.00
CEMETERY MARKERS 001-8050-536.34-01 1,333.00
CEMETERY MARKERS 001-8050-536.34-01 1,341.00
SOUND PUBLISHING INC COMMUNICATIONS/MEDIA SERV 001-8050-536.41-15 325.00
Ocean View Cemetery Division Total:$4,518.00
ANGELES MILLWORK & LUMBER HAND TOOLS ,POW&NON POWER 001-8080-576.31-20 55.37
PARK,PLAYGROUND,REC EQUIP 001-8080-576.31-20 8.08
HAND TOOLS ,POW&NON POWER 001-8080-576.35-01 503.45
SUPPLIES 001-8080-576.31-20 631.55
SUPPLIES 001-8080-576.31-20 13.13
SUPPLIES 001-8080-576.31-20 49.26
PAINTS,COATINGS,WALLPAPER 001-8080-576.31-20 95.40
SUPPLIES 001-8080-576.31-20 17.65
SUPPLIES 001-8080-576.31-20 116.12
LUMBER& RELATED PRODUCTS 001-8080-576.31-20 928.89
HAND TOOLS ,POW&NON POWER 001-8080-576.31-20 8.62
Page 3 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 7
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
ANGELES MILLWORK & LUMBER SUPPLIES 001-8080-576.31-20 89.19
SUPPLIES 001-8080-576.31-20 78.39
FERRELLGAS INC SUPPLIES 001-8080-576.49-90 379.22
GOODMAN SANITATION BUILDING, FABRICATED 001-8080-576.45-30 161.46
BUILDING, FABRICATED 001-8080-576.45-30 161.46
BUILDING, FABRICATED 001-8080-576.45-30 213.21
MISC TRAVEL COX-EQUIP SERVICING-REEL 001-8080-576.43-10 17.25
HAMMEL-EQUIP SERVICING-RE 001-8080-576.43-10 17.25
PACIFIC NETTING PRODUCTS INC SPORTING & ATHLETIC EQUIP 001-8080-576.31-20 864.07
PORT ANGELES POWER
EQUIPMENT
SUPPLIES 001-8080-576.31-20 17.33
SMALL ENGINE CLINIC, INC AUTO & TRUCK MAINT. ITEMS 001-8080-576.31-20 61.59
AUTO & TRUCK MAINT. ITEMS 001-8080-576.31-20 180.18
SPECIALTY MINING & INFIELD
SUPPLIES
SEED,SOD,SOIL&INOCULANT 001-8080-576.31-40 7,157.04
SWAIN'S GENERAL STORE INC SUPPLIES 001-8080-576.31-20 82.56
HAND TOOLS ,POW&NON POWER 001-8080-576.31-20 32.61
SUPPLIES 001-8080-576.31-20 13.51
SHOES AND BOOTS 001-8080-576.31-01 169.62
SUPPLIES 001-8080-576.31-20 117.44
SUPPLIES 001-8080-576.31-20 15.17
Parks Facilities Division Total:$12,256.07
Parks & Recreation Department Total:$16,774.07
BAILEY SIGNS & GRAPHICS MISCELLANEOUS SERVICES 001-8131-518.31-01 136.00
CENTRAL WELDING SUPPLY SUPPLIES 001-8131-518.31-20 612.00
HARBOR FREIGHT TOOLS MATERIAL HNDLING&STOR EQP 001-8131-518.31-01 217.58
HARTNAGEL BUILDING SUPPLY INC PAINTS,COATINGS,WALLPAPER 001-8131-518.31-20 46.57
LEGACY TELECOMMUNICATIONS,
INC
EQUIP MAINT & REPAIR SERV 001-8131-518.48-10 1,387.48
SWAIN'S GENERAL STORE INC JANITORIAL SUPPLIES 001-8131-518.31-01 65.70
THURMAN SUPPLY DUPLICATE 001-8131-518.31-20 24.09
Central Svcs Facilities Division Total:$2,489.42
Facilities Maintenance Department Total:$2,489.42
General Fund Fund Total:$142,791.00
LINCOLN PARK BMX ASSOCIATION BLANKET PURCHASE ORDER 101-1430-557.41-50 7,133.19
Lodging Excise Tax Division Total:$7,133.19
Page 4 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 8
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
Lodging Excise Tax Department Total:$7,133.19
Lodging Excise Tax Fund Total:$7,133.19
A-1 PERFORMANCE, INC BUILDING MAINT&REPAIR SER 102-7230-542.41-50 151.50
BAXTER AUTO PARTS #15 JANITORIAL SUPPLIES 102-7230-542.31-01 39.53
FASTENAL INDUSTRIAL FIRST AID & SAFETY EQUIP.102-7230-542.31-01 136.42
PAPER & PLASTIC-DISPOSABL 102-7230-542.31-01 224.17
HERMANN BROS LOGGING &
CONST
LUMBER& RELATED PRODUCTS 102-7230-542.31-20 90.60
JJC RESOURCES, LLC ROAD/HWY MAT NONASPHALTIC 102-7230-542.31-20 1,940.81
ROAD/HWY MAT NONASPHALTIC 102-7230-542.31-20 1,891.19
ORKIN EXTERMINATING COMPANY
INC
EXTERNAL LABOR SERVICES 102-7230-542.41-50 33.06
EXTERNAL LABOR SERVICES 102-7230-542.41-50 35.46
PORT ANGELES POWER
EQUIPMENT
LAWN MAINTENANCE EQUIP 102-7230-542.31-01 104.20
AUTO & TRUCK MAINT. ITEMS 102-7230-542.31-01 48.83
MASS TRANS,ACCES& PARTS 102-7230-542.31-01 572.29
LAWN MAINTENANCE EQUIP 102-7230-542.35-01 564.72
MASS TRANS,ACCES& PARTS 102-7230-542.31-01 41.22
PUD #1 OF CLALLAM COUNTY MISC PROFESSIONAL SERVICE 102-7230-542.47-10 14.09
MISC PROFESSIONAL SERVICE 102-7230-542.47-10 21.72
SARGENT ENGINEERING, INC ENGINEERING SERVICES 102-7230-542.41-50 4,140.97
SWAIN'S GENERAL STORE INC AUTO SHOP EQUIPMENT & SUP 102-7230-542.31-01 24.24
HARDWARE,AND ALLIED ITEMS 102-7230-542.31-01 53.99
AUTO SHOP EQUIPMENT & SUP 102-7230-542.31-01 15.20
AUTO SHOP EQUIPMENT & SUP 102-7230-542.31-01 29.08
Street Division Total:$10,173.29
Public Works-Street Department Total:$10,173.29
Street Fund Total:$10,173.29
A WORKSAFE SERVICE, INC HEALTH RELATED SERVICES 107-5160-528.41-50 60.00
CEDAR GROVE COUNSELING, INC. HEALTH RELATED SERVICES 107-5160-528.41-50 18.50
COASTAL HEALTH HEALTH RELATED SERVICES 107-5160-528.41-50 50.00
DATABAR INCORPORATED MISC PROFESSIONAL SERVICE 107-5160-528.41-15 58.38
MISC PROFESSIONAL SERVICE 107-5160-528.41-15 58.68
MISC PROFESSIONAL SERVICE 107-5160-528.41-15 62.81
ETA MEDIA, INC PENCOM VIDEO PRODUCTION/P 107-5160-528.41-15 360.00
INLAND NORTHWEST CINEMEDIA DEER PARK THEATER ADVERTI 107-5160-528.41-15 2,650.00
Page 5 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 9
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
LEGACY TELECOMMUNICATIONS,
INC
EQUIP MAINT & REPAIR SERV 107-5160-528.48-10 1,580.44
MISC TRAVEL PUCCIARELLI-ADAM TIMM TRA 107-5160-528.43-11 5.50
PETEK & ASSOCIATES HEALTH RELATED SERVICES 107-5160-528.41-50 385.00
QUILL CORPORATION OFFICE SUPPLY,INKS,LEADS 107-5160-528.31-01 544.85
REINHOLD, BEVERLY SECURITY,FIRE,SAFETY SERV 107-5160-528.41-50 750.00
TYLER TECHNOLOGIES, INC DATA PROC SERV &SOFTWARE 107-5160-528.48-10 8,050.79
WA STATE PATROL COMPUTER SOFTWARE FOR MIN 107-5160-528.41-50 1,200.00
Pencom Division Total:$15,834.95
Pencom Department Total:$15,834.95
Pencom Fund Total:$15,834.95
DEVELOPMENT GROUP, INC CONSULTING SERVICES 310-5950-594.65-10 10,342.80
ZENOVIC & ASSOCIATES ARCHITECTURAL&ENGINEERING 310-5950-594.65-10 270.00
ARCHITECTURAL&ENGINEERING 310-5950-594.65-10 461.25
Homeland Security Division Total:$11,074.05
Public Safety Projects Department Total:$11,074.05
SARGENT ENGINEERING, INC ENGINEERING SERVICES 310-8985-594.65-10 152.99
Misc Parks Projects Division Total:$152.99
Capital Proj-Parks & Rec Department Total:$152.99
Capital Improvement Fund Total:$11,227.04
2 GRADE, LLC CONSTRUCTION SERVICES,GEN 312-7930-595.65-10 8,708.35
PARAMETRIX INC CONSULTING SERVICES 312-7930-595.65-10 618.00
CONSULTING SERVICES 312-7930-595.65-10 11,844.77
SARGENT ENGINEERING, INC ENGINEERING SERVICES 312-7930-595.65-10 152.99
GF-Street Projects Division Total:$21,324.11
Capital Projects-Pub Wks Department Total:$21,324.11
Transportation Benefit Fund Total:$21,324.11
ANIXTER LUMBER& RELATED PRODUCTS 401-0000-141.42-00 5,657.60
BORDER STATES INDUSTRIES INC ELECTRICAL EQUIP & SUPPLY 401-0000-141.41-00 721.76
ELECTRICAL EQUIP & SUPPLY 401-0000-141.42-00 11,422.55
LUMBER& RELATED PRODUCTS 401-0000-141.42-00 5,920.33
LUMBER& RELATED PRODUCTS 401-0000-141.42-00 7,805.63
CED/CONSOLIDATED ELEC DIST ELECTRICAL EQUIP & SUPPLY 401-0000-141.42-00 1,213.23
MISC UTILITY DEPOSIT REFUNDS FINAL BILL REFUND 401-0000-122.10-99 7.21
FINAL BILL REFUND 401-0000-122.10-99 92.14
Page 6 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 10
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
MISC UTILITY DEPOSIT REFUNDS FINAL BILL REFUND 401-0000-122.10-99 127.84
FINAL BILL REFUND 401-0000-122.10-99 157.54
FINAL BILL REFUND 401-0000-122.10-99 208.92
FINAL BILL REFUND 401-0000-122.10-99 229.29
FINAL CREDIT-1406 ROOK DR 401-0000-122.10-99 197.71
FINAL CREDIT-2403 W 10TH 401-0000-122.10-99 667.41
DEPOSIT REFUND 401-0000-122.10-99 125.00
Division Total:$34,554.16
Department Total:$34,554.16
CLALLAM CNTY UTLTY COORD
CNCL
MEMBERSHIPS 401-7111-533.49-01 10.00
Engineering-Electric Division Total:$10.00
MARSH MUNDORF PRATT
SULLIVAN
CONSULTING SERVICES 401-7120-533.49-01 468.52
Power Systems Division Total:$468.52
A-1 PERFORMANCE, INC BUILDING MAINT&REPAIR SER 401-7180-533.41-50 334.78
AMAZON CAPITAL SERVICES ELECTRICAL EQUIP & SUPPLY 401-7180-533.31-01 18.45
ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 49.34
BAXTER AUTO PARTS #15 AUTO SHOP EQUIPMENT & SUP 401-7180-533.35-01 2.61
BORDER STATES INDUSTRIES INC ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 1,467.85
ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 2,274.60
CED/CONSOLIDATED ELEC DIST ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 29.38
CLALLAM CNTY TREASURER 210-46742 STORMWATER 401-7180-533.47-10 1,956.44
ESRI INC DATA PROC SERV &SOFTWARE 401-7180-533.48-02 2,538.66
LUTZCO, INC. FIRE PROTECTION EQUIP/SUP 401-7180-533.31-01 743.58
FIRE PROTECTION EQUIP/SUP 401-7180-533.31-01 122.64
FIRE PROTECTION EQUIP/SUP 401-7180-533.31-01 126.79
OLYMPIC ELECTRIC CO INC PW CONSTRUCTION & RELATED 401-7180-533.41-50 305.18
CONSTRUCTION SERVICES,TRA 401-7180-533.41-50 89,012.73
PORT ANGELES POWER
EQUIPMENT
HAND TOOLS ,POW&NON POWER 401-7180-533.35-01 174.06
SHI INTERNATIONAL CORP COMPUTERS,DP & WORD PROC. 401-7180-533.31-01 47.26
Electric Operations Division Total:$99,204.35
Public Works-Electric Department Total:$99,682.87
Electric Utility Fund Total:$134,237.03
CORE & MAIN LP PIPE FITTINGS 402-0000-141.40-00 1,945.73
Page 7 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 11
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
Division Total:$1,945.73
Department Total:$1,945.73
AMAZON CAPITAL SERVICES COMPUTER ACCESSORIES&SUPP 402-7380-534.31-01 383.39
ANGELES MILLWORK & LUMBER PAINTING EQUIPMENT & ACC 402-7380-534.31-20 52.51
PAINTING EQUIPMENT & ACC 402-7380-534.31-20 63.34
AUTO SHOP EQUIPMENT & SUP 402-7380-534.31-01 26.61
BRUSHES (NOT CLASSIFIED) 402-7380-534.31-20 31.60
HAND TOOLS ,POW&NON POWER 402-7380-534.31-01 29.77
PAINTING EQUIPMENT & ACC 402-7380-534.31-20 71.61
BAXTER AUTO PARTS #15 FIRST AID & SAFETY EQUIP.402-7380-534.31-01 153.84
FIRST AID & SAFETY EQUIP.402-7380-534.31-01 89.77
FLOOR MAINT MACHINE,PARTS 402-7380-534.31-01 17.66
CASCADE COLUMBIA
DISTRIBUTION, INC
ENVIRONMENTAL&ECOLOGICAL 402-7380-534.31-05 38.08
FOODS: STAPLE GROCERY 402-7380-534.31-05 6,854.40
SHIPPING AND HANDLING 402-7380-534.31-05 1,624.18
CLALLAM CNTY DEPT OF HEALTH TESTING&CALIBRATION SERVI 402-7380-534.41-50 92.00
CLALLAM CNTY UTLTY COORD
CNCL
MEMBERSHIPS 402-7380-534.49-01 10.00
E&M ELECTRIC & MACHINERY DATA PROC SERV &SOFTWARE 402-7380-534.43-10 1,500.00
ESRI INC DATA PROC SERV &SOFTWARE 402-7380-534.48-02 2,538.66
HD SUPPLY LAUNDRY& DRY CLEAN COMPOD 402-7380-534.31-05 900.35
HERMANN BROS LOGGING &
CONST
PW CONSTRUCTION & RELATED 402-7380-534.31-20 30.00
JOHNSON CONTROLS SECURITY,FIRE,SAFETY SERV 402-7380-534.41-50 1,276.77
MISC EMPLOYEE EXPENSE
REIMBURSEMENT
MEAL REIMBURSEMENT - MAIN 402-7380-534.31-01 37.00
MEAL REIMBURSEMENT - MAIN 402-7380-534.31-01 37.00
MEAL REIMBURSEMENT - MAIN 402-7380-534.31-01 37.00
MEAL REIMBURSEMENT - MAIN 402-7380-534.31-01 37.00
MEAL REIMBURSEMENT MAIN B 402-7380-534.31-01 37.00
OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 402-7380-534.31-01 286.69
ORKIN EXTERMINATING COMPANY
INC
EXTERNAL LABOR SERVICES 402-7380-534.41-50 33.08
EXTERNAL LABOR SERVICES 402-7380-534.41-50 35.47
PROFESSIONAL CABLE, LLC ELECTRICAL CABLES & WIRES 402-7380-534.31-20 29.26
PUD #1 OF CLALLAM COUNTY MISC PROFESSIONAL SERVICE 402-7380-534.47-10 55.34
SPECTRA LABORATORIES-KITSAP TESTING&CALIBRATION SERVI 402-7380-534.41-50 193.00
Page 8 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 12
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
SPECTRA LABORATORIES-KITSAP TESTING&CALIBRATION SERVI 402-7380-534.41-50 239.00
SWAIN'S GENERAL STORE INC HARDWARE,AND ALLIED ITEMS 402-7380-534.31-01 189.40
USA BLUEBOOK WATER&SEWER TREATING CHEM 402-7380-534.31-05 2,260.00
Water Division Total:$19,290.78
PUD #1 OF CLALLAM COUNTY MISC PROFESSIONAL SERVICE 402-7382-534.47-10 53.15
Industrial Water Treatmnt Division Total:$53.15
Public Works-Water Department Total:$19,343.93
Water Utility Fund Total:$21,289.66
NCL NORTH CENTRAL
LABORATORIES
CHEMICAL LAB EQUIP & SUPP 403-0000-237.00-00 (4.06)
CHEMICAL LAB EQUIP & SUPP 403-0000-237.00-00 (58.09)
Division Total:($62.15)
Department Total:($62.15)
ANGELES MACHINE WORKS INC METALS,BARS,PLATES,RODS 403-7480-535.31-20 567.32
CLALLAM CNTY UTLTY COORD
CNCL
MEMBERSHIPS 403-7480-535.49-01 10.00
E&M ELECTRIC & MACHINERY DATA PROC SERV &SOFTWARE 403-7480-535.43-10 1,500.00
EDGE ANALYTICAL MISC PROFESSIONAL SERVICE 403-7480-535.41-50 56.00
MISC PROFESSIONAL SERVICE 403-7480-535.41-50 56.00
MISC PROFESSIONAL SERVICE 403-7480-535.41-50 1,042.25
MISC PROFESSIONAL SERVICE 403-7480-535.41-50 1,184.00
ESRI INC DATA PROC SERV &SOFTWARE 403-7480-535.48-02 2,538.67
FEDERAL EXPRESS CORP Shipping Charges 403-7480-535.42-10 11.73
Shipping Charges 403-7480-535.42-10 67.32
Shipping charges 403-7480-535.42-10 13.25
Shipping charges 403-7480-535.42-10 31.39
FERGUSON ENTERPRISES INC STEAM & HOT WATER FITTING 403-7480-535.31-20 378.62
FIRE CHIEF EQUIPMENT CO, INC FIRE PROTECTION EQUIP/SUP 403-7480-535.48-10 855.00
EQUIP MAINT & REPAIR SERV 403-7480-535.48-10 488.51
FOWLER COMPANY, H D PIPE FITTINGS 403-7480-535.31-20 4,041.16
GRAINGER MATERIAL HNDLING&STOR EQP 403-7480-535.31-20 215.62
PLUMBING EQUIP FIXT,SUPP 403-7480-535.31-20 143.27
MATERIAL HNDLING&STOR EQP 403-7480-535.31-20 122.14
SIGNS, SIGN MATERIAL 403-7480-535.31-01 22.42
SIGNS, SIGN MATERIAL 403-7480-535.31-01 57.75
APPLIANCES, HOUSEHOLD 403-7480-535.31-20 87.93
Page 9 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 13
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
GRAINGER CHEMICAL LAB EQUIP & SUPP 403-7480-535.31-01 148.68
JANITORIAL SUPPLIES 403-7480-535.31-01 228.09
PLUMBING EQUIP FIXT,SUPP 403-7480-535.31-20 43.15
HARBOR FREIGHT TOOLS HAND TOOLS ,POW&NON POWER 403-7480-535.35-01 368.72
HOSP SURG ACCES & SUNDRIS 403-7480-535.35-01 130.47
HAND TOOLS ,POW&NON POWER 403-7480-535.35-01 400.81
MISC TRAVEL M WEED-PUMP PICKUP FOR WW 403-7480-535.43-10 17.25
N DAILING-PUMP PICKUP FOR 403-7480-535.43-10 17.25
M WEED-PUMP DROPOFF FOR W 403-7480-535.43-10 17.25
NCL NORTH CENTRAL
LABORATORIES
CHEMICAL LAB EQUIP & SUPP 403-7480-535.31-01 50.24
CHEMICAL LAB EQUIP & SUPP 403-7480-535.31-01 718.28
ORKIN EXTERMINATING COMPANY
INC
EXTERNAL LABOR SERVICES 403-7480-535.41-50 33.08
EXTERNAL LABOR SERVICES 403-7480-535.41-50 35.47
PETROCARD, INC FUEL,OIL,GREASE, & LUBES 403-7480-535.32-11 1,259.16
POLYDYNE INC WATER&SEWER TREATING CHEM 403-7480-535.31-05 4,661.97
PUD #1 OF CLALLAM COUNTY MISC PROFESSIONAL SERVICE 403-7480-535.47-10 411.50
MISC PROFESSIONAL SERVICE 403-7480-535.47-10 648.81
SWAIN'S GENERAL STORE INC PAINTS,COATINGS,WALLPAPER 403-7480-535.31-01 45.80
FOODS: PERISHABLE 403-7480-535.31-01 189.93
SHOES AND BOOTS 403-7480-535.31-01 166.21
THURMAN SUPPLY PIPE FITTINGS 403-7480-535.31-20 31.76
USA BLUEBOOK CHEMICAL LAB EQUIP & SUPP 403-7480-535.31-01 320.59
LAB EQUIP,BIO,CHEM,ENVIR 403-7480-535.35-01 8,678.12
PIPE FITTINGS 403-7480-535.31-20 380.75
WALTER E NELSON CO JANITORIAL SUPPLIES 403-7480-535.31-01 549.39
HOSP SURG ACCES & SUNDRIS 403-7480-535.31-01 239.79
Wastewater Division Total:$33,282.87
Public Works-WW/Stormwtr Department Total:$33,282.87
Wastewater Utility Fund Total:$33,220.72
AMAZON CAPITAL SERVICES 2 WAY RADIOS 404-7538-537.35-01 1,886.52
EQUIP MAINT & REPAIR SERV 404-7538-537.31-01 303.53
CLALLAM CNTY UTLTY COORD
CNCL
MEMBERSHIPS 404-7538-537.49-01 10.00
CLEAN EARTH EVIRONMENTAL
SOLUTIONS
PW CONSTRUCTION & RELATED 404-7538-537.41-51 815.99
Page 10 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 14
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
FEDERAL EXPRESS CORP Shipping Charges 404-7538-537.42-10 28.74
FOSTER GARVEY PC MISC PROFESSIONAL SERVICE 404-7538-537.41-50 6,860.50
HERMANN BROS LOGGING &
CONST
TAX CREDIT 404-7538-537.41-51 (158.45)
ROADSIDE,GRNDS,REC, PARK 404-7538-537.41-50 8,959.76
RABANCO, LTD MISCELLANEOUS SERVICES 404-7538-537.41-51 (12,398.10)
MISCELLANEOUS SERVICES 404-7538-537.41-51 46,180.34
REGIONAL DISPOSAL BUILDING MAINT&REPAIR SER 404-7538-537.41-51 14,811.50
BUILDING MAINT&REPAIR SER 404-7538-537.41-51 60,568.94
BUILDING MAINT&REPAIR SER 404-7538-537.41-51 222,313.66
SWAIN'S GENERAL STORE INC HARDWARE,AND ALLIED ITEMS 404-7538-537.31-01 81.47
SWANA EDUCATIONAL SERVICES 404-7538-537.43-10 1,800.00
THURMAN SUPPLY MATERIAL HNDLING&STOR EQP 404-7538-537.48-10 325.31
WESTERN STEEL METALS,BARS,PLATES,RODS 404-7538-537.35-01 3,607.80
SW - Transfer Station Division Total:$355,997.51
A-1 PERFORMANCE, INC BUILDING MAINT&REPAIR SER 404-7580-537.41-50 151.53
BAILEY SIGNS & GRAPHICS SUPPLIES 404-7580-537.31-01 979.20
BAXTER AUTO PARTS #15 JANITORIAL SUPPLIES 404-7580-537.31-01 79.52
MISC EMPLOYEE EXPENSE
REIMBURSEMENT
MEAL REIMBURSEMENT - OVER 404-7580-537.31-01 37.00
MEAL REIMBURSEMENT - OVER 404-7580-537.31-01 55.50
ORKIN EXTERMINATING COMPANY
INC
EXTERNAL LABOR SERVICES 404-7580-537.41-50 33.08
EXTERNAL LABOR SERVICES 404-7580-537.41-50 35.47
SWAIN'S GENERAL STORE INC FIRST AID & SAFETY EQUIP.404-7580-537.31-01 42.99
FIRST AID & SAFETY EQUIP.404-7580-537.31-01 37.80
Solid Waste-Collections Division Total:$1,452.09
Public Works-Solid Waste Department Total:$357,449.60
Solid Waste Utility Fund Total:$357,449.60
ANGELES MILLWORK & LUMBER HARDWARE,AND ALLIED ITEMS 406-7412-538.31-01 101.51
HARDWARE,AND ALLIED ITEMS 406-7412-538.35-01 141.43
BUILDER'S SUPPLIES 406-7412-538.31-20 328.22
CLALLAM CNTY UTLTY COORD
CNCL
MEMBERSHIPS 406-7412-538.49-90 10.00
CLALLAM CONSERVATION
DISTRICT
NURSERY STOCK & SUPPLIES 406-7412-538.44-10 399.82
ESRI INC DATA PROC SERV &SOFTWARE 406-7412-538.48-02 1,860.03
FASTENAL INDUSTRIAL JANITORIAL SUPPLIES 406-7412-538.31-01 183.89
Page 11 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 15
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
FASTENAL INDUSTRIAL JANITORIAL SUPPLIES 406-7412-538.31-20 897.97
HEARTLINE NURSERY STOCK & SUPPLIES 406-7412-538.31-20 71.81
ROADSIDE,GRNDS,REC, PARK 406-7412-538.31-20 71.81
NURSERY STOCK & SUPPLIES 406-7412-538.31-20 35.90
NURSERY STOCK & SUPPLIES 406-7412-538.31-20 71.81
OSBORN CONSULTING, INC CONSULTING SERVICES 406-7412-538.41-50 19,675.11
USA BLUEBOOK BAGS,BAGGING,TIES,EROSION 406-7412-538.31-20 57.51
BAGS,BAGGING,TIES,EROSION 406-7412-538.31-20 115.02
BAGS,BAGGING,TIES,EROSION 406-7412-538.31-20 225.15
RADIO & TELECOMMUNICATION 406-7412-538.35-01 761.46
BAGS,BAGGING,TIES,EROSION 406-7412-538.31-20 117.50
WA STATE DEPARTMENT OF
ECOLOGY
ENVIRONMENTAL&ECOLOGICAL 406-7412-538.49-90 4,718.70
Stormwater Division Total:$29,844.65
Public Works-WW/Stormwtr Department Total:$29,844.65
Stormwater Utility Fund Total:$29,844.65
CLALLAM CNTY EMS APRIL MPD 409-6025-526.41-50 1,140.00
GALLS CLOTHING & APPAREL 409-6025-526.20-80 151.79
CLOTHING & APPAREL 409-6025-526.20-80 73.44
LIFE ASSIST SALE SURPLUS/OBSOLETE 409-6025-526.31-01 30.35
SALE SURPLUS/OBSOLETE 409-6025-526.31-13 213.16
SALE SURPLUS/OBSOLETE 409-6025-526.31-13 20.16
SALE SURPLUS/OBSOLETE 409-6025-526.31-01 2,221.66
SALE SURPLUS/OBSOLETE 409-6025-526.31-01 25.02
MISC TRAVEL BUTSCHER-PARAMEDIC SCHOOL 409-6025-526.43-10 1,046.75
CARLSON-PARAMEDIC SCHOOL 409-6025-526.43-10 1,046.75
HAGAMAN-PARAMEDIC SCHOOL 409-6025-526.43-10 1,947.00
PACIFIC OFFICE EQUIPMENT INC SUPPLIES 409-6025-526.31-01 146.03
SYSTEMS DESIGN WEST, LLC CONSULTING SERVICES 409-6025-526.41-50 2,854.05
TELEFLEX, LLC SALE SURPLUS/OBSOLETE 409-6025-526.31-01 173.54
Medic I Division Total:$11,089.70
Fire Department Total:$11,089.70
Medic I Utility Fund Total:$11,089.70
PKG LAW, PS MISC PROFESSIONAL SERVICE 413-7481-535.41-50 2,578.70
MISC PROFESSIONAL SERVICE 413-7481-535.41-50 4,262.50
Page 12 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 16
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
Wastewater Remediation Division Total:$6,841.20
Public Works-WW/Stormwtr Department Total:$6,841.20
Harbor Clean Up Fund Total:$6,841.20
COMPOSITE RECYCLING
TECHNOLOGY CTR
CITY REBATE - LIGHTING RE 421-7121-533.49-86 3,520.00
DAVE'S HEATING & COOLING SVC CITY REBATE - HEAT PUMP -421-7121-533.49-86 800.00
CITY REBATE - HEAT PUMP -421-7121-533.49-86 800.00
MISC CITY CONSERVATION
REBATES
REBATE - DHP - 214 E. LAU 421-7121-533.49-86 20,000.00
Conservation Division Total:$25,120.00
Public Works-Electric Department Total:$25,120.00
Conservation Fund Total:$25,120.00
ALTEC INDUSTRIES, INC AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 390.80
AMAZON CAPITAL SERVICES AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 386.10
ASSOCIATED PETROLEUM
PRODUCTS, INC
FUEL,OIL,GREASE, & LUBES 501-0000-141.20-00 14,207.62
BAXTER AUTO PARTS #15 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 142.69
AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 215.21
HEARTLINE AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 448.15
IRONCLAD COMPANY AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 1,567.81
N C MACHINERY CO AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 1,164.94
NAPA AUTO PARTS AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 136.97
AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 11.97
AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 17.30
AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 17.30
AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 11.97
AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 12.37
AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 13.27
AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 401.11
OWEN EQUIPMENT AUTO & TRUCK ACCESSORIES 501-0000-141.40-00 94.89
PRICE FORD LINCOLN AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 156.71
SIRENNET.COM AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 3,076.96
SOLID WASTE SYSTEMS, INC AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 2,496.41
WESTERN PETERBILT INC AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 1,795.53
Division Total:$26,766.08
Department Total:$26,766.08
Page 13 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 17
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
A-1 PERFORMANCE, INC BUILDING MAINT&REPAIR SER 501-7630-548.41-50 178.84
ANGELES MILLWORK & LUMBER AUTO & TRUCK MAINT. ITEMS 501-7630-548.31-01 33.74
AUTO & TRUCK MAINT. ITEMS 501-7630-548.31-01 76.65
AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 32.71
ARAMARK LAUNDRY/DRY CLEANING SERV 501-7630-548.49-90 20.28
LAUNDRY/DRY CLEANING SERV 501-7630-548.49-90 20.28
ASSOCIATED PETROLEUM
PRODUCTS, INC
FUEL,OIL,GREASE, & LUBES 501-7630-548.32-13 61.58
BAXTER AUTO PARTS #15 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 212.07
AUTO & TRUCK MAINT. ITEMS 501-7630-548.31-01 149.82
DAREN'S POINT S EXTERNAL LABOR SERVICES 501-7630-548.34-02 36.88
HEARTLINE AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 165.32
LES SCHWAB TIRE CENTER AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 2,835.63
AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 837.18
MATT'S TOOLS USA, LLC AUTO & TRUCK MAINT. ITEMS 501-7630-548.35-01 70.34
NAPA AUTO PARTS AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 (136.41)
AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 136.41
AUTO & TRUCK MAINT. ITEMS 501-7630-548.31-01 15.93
AUTO & TRUCK MAINT. ITEMS 501-7630-548.31-01 15.93
AUTO & TRUCK MAINT. ITEMS 501-7630-548.31-01 (31.86)
AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 51.61
ORKIN EXTERMINATING COMPANY
INC
EXTERNAL LABOR SERVICES 501-7630-548.41-50 33.08
EXTERNAL LABOR SERVICES 501-7630-548.41-50 35.46
OWEN EQUIPMENT AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 3,233.88
PAPE GROUP MATERIAL HNDLING&STOR EQP 501-7630-594.64-10 33,678.33
RUDDELL AUTO MALL AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 99.73
SIX ROBBLEES' INC AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 (741.48)
AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 (330.03)
AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 656.64
AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 3,952.91
SOLID WASTE SYSTEMS, INC AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 296.45
WESTERN PETERBILT INC AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 (422.69)
AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 404.65
AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 71.77
WILDER TOYOTA INC AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 5.86
Page 14 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 18
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
Equipment Services Division Total:$45,757.49
Public Works Department Total:$45,757.49
Equipment Services Fund Total:$72,523.57
ASTOUND BROADBAND DATA PROC SERV &SOFTWARE 502-2081-518.42-12 8,659.10
DATA PROC SERV &SOFTWARE 502-2081-518.42-12 14,530.93
CENTURYLINK-QWEST 03-05 A/C 206Z050031846B 502-2081-518.42-10 2,818.58
CONVERGE TECHNOLOGY
SOLUTIONS
DATA PROC SERV &SOFTWARE 502-2081-518.48-02 23,095.32
ESRI INC HUMAN SERVICES 502-2081-518.43-10 1,702.00
PATCH MY PC LLC COMPUTERS,DP & WORD PROC. 502-2081-518.48-02 2,718.91
SHI INTERNATIONAL CORP DATA PROC SERV &SOFTWARE 502-2081-518.48-02 200,257.37
VERIZON WIRELESS 02-15 A/C 842160242-00001 502-2081-518.42-10 3,751.78
02-15 A/C 842160242-00004 502-2081-518.42-10 4,879.62
02-15 A/C 842160242-0003 502-2081-518.42-10 1,737.21
02-22 A/C 571136182-00001 502-2081-518.42-10 101.35
03-05 A/C 542276284-00001 502-2081-518.42-10 95.19
Information Technologies Division Total:$264,347.36
PSI, LLC EQUIP MAINT & REPAIR SERV 502-2083-518.48-10 413.48
PUD #1 OF CLALLAM COUNTY RADIO & TELECOMMUNICATION 502-2083-518.47-10 175.71
Wireless Mesh Division Total:$589.19
Finance Department Total:$264,936.55
Information Technology Fund Total:$264,936.55
AWC EMPLOYEE BENEFITS TRUST L1 MED/DEN/VIS PREMIUMS 503-1631-517.46-34 8,102.06
LIFE INSURANCE 503-1631-517.46-32 1,819.80
LTD 503-1631-517.46-31 6,105.04
MED/DEN/VIS PREMIUMS 503-1631-517.46-30 223,317.96
HSA BANK Service Fee 503-1631-517.46-30 25.50
Service Fee 503-1631-517.46-30 232.50
REDACTED REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 108.00
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 108.00
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 108.00
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 148.50
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 148.50
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 148.50
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 154.10
Page 15 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 19
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
REDACTED REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 164.90
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 164.90
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 164.90
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 164.90
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 164.90
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 164.90
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 164.90
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 164.90
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 164.90
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 164.90
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 442.90
REIMBURSE MEDICARE-MARCH 503-1631-517.46-35 670.90
Other Insurance Programs Division Total:$243,289.26
OLYMPIC ELECTRIC CO INC IN HOUSE LIABILITY CLAIM 503-1671-517.49-98 399.89
Comp Liability Division Total:$399.89
Self Insurance Department Total:$243,689.15
Self-Insurance Fund Total:$243,689.15
AWC EMPLOYEE BENEFITS TRUST SUPPLEMENTAL LIFE 920-0000-231.53-30 764.40
CHAPTER 13 TRUSTEE Case #21-10696 920-0000-231.56-90 358.00
EMPLOYEES ASSOCIATION PAYROLL SUMMARY 920-0000-231.55-30 660.00
EMPOWER-P/R WIRE PAYROLL SUMMARY 920-0000-231.52-20 25,741.36
FEDERAL PAYROLL TAX PAYROLL SUMMARY 920-0000-231.50-10 86,999.10
FICA/MEDICARE PAYROLL TAX PAYROLL SUMMARY 920-0000-231.50-20 104,555.76
HSA BANK PAYROLL SUMMARY 920-0000-231.53-11 75.00
PAYROLL SUMMARY 920-0000-231.53-12 321.93
JOHN HANCOCK LIFE INSURANCE
CO
PAYROLL SUMMARY 920-0000-231.52-25 1,645.22
LEOFF PAYROLL SUMMARY 920-0000-231.51-21 34,263.55
MISSION SQUARE-P/R WIRES PAYROLL SUMMARY 920-0000-231.52-10 29,765.00
OFFICE OF SUPPORT
ENFORCEMENT
PAYROLL SUMMARY 920-0000-231.56-20 1,116.83
PERS PAYROLL SUMMARY 920-0000-231.51-10 624.10
PAYROLL SUMMARY 920-0000-231.51-11 16,227.64
PAYROLL SUMMARY 920-0000-231.51-12 87,133.32
TEAMSTERS LOCAL 589 PAYROLL SUMMARY 920-0000-231.54-10 2,218.00
Page 16 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 20
City of Port Angeles
City Council Expenditure Report
Between Mar 25, 2023 and Apr 7, 2023
Vendor Description Account Number Amount
TEAMSTERS LOCAL 589 PAYROLL SUMMARY 920-0000-231.54-10 2,218.00
UNITED WAY (PAYROLL) PAYROLL SUMMARY 920-0000-231.56-10 190.00
WSCFF/EMPLOYEE BENEFIT
TRUST
PAYROLL SUMMARY 920-0000-231.53-20 5,800.00
Division Total:$400,677.21
Department Total:$400,677.21
Payroll Clearing Fund Total:$400,677.21
Total for Checks Dated Between Mar 25, 2023 and Apr 7, 2023 $1,809,402.62
Page 17 of 17 Apr 12, 2023 10:23:21 AM
April 18, 2023 E - 21
Date: April 18, 2023
To: City Council
From: Mike Healy, Interim Director of Public Works & Utilities
Subject: Glass Recycling Transport Contract
Background / Analysis:
On February 7, 2023, the City Council approved a Pilot Residential Glass Recycling Program. The
operational needs of this program will require all recyclable glass collected to be transported to a
recycling processor in the Seattle metro area, this contract provides for that service. This procurement will
complete the transportation needs necessary for this Pilot Program. This procurement adds to the efficient
transport of recycled glass from both the Port Angeles and Blue Mountain Transfer Station sites.
The terms of this agreement stipulate that Hermann Brothers Inc. will provide long-haul live-bottom
trailers and will transport these trailers from the Port Angeles Transfer Station to Strategic Materials Inc.
The contract is for a total of $60,000.00 annually allowing for the anticipated volume of glass to increase
should the program prove successful. The cost of the service is $1,575.00 per load. The transport quantity
will vary depending on the amount of material collected which is anticipated to be a minimum of two
trailers per month. This is a one-year contract with the option to extend annually for an additional five
years.
Funding Overview:
Staff proposes using funds already included in the 2023 Solid Waste Budget to support this contract.
Summary: This contract is to provide long-haul transport services for the glass recycling program. The
glass material is to be transported from the Port Angeles Transfer Station to the closest recycle glass
processor in the Seattle metro area, Strategic Materials, Inc.
Funding: This contract will be funded through the approved Solid Waste 2023 Budget.
Recommendation: Authorize the City Manager to sign a contract for the transport of recyclable glass
from the Port Angeles Transfer Station to a Glass Recycle Processor in an annual amount not to exceed
$60,000.
April 18, 2023 E - 22
Date: April 18, 2023
To: City Council
From: Nathan A. West, City Manager
Sarina Carrizosa, Finance Director
Subject: 2023 Budget Amendment #1
Background / Analysis:
The first amendment to the 2023 Budget will “clean-up” a variety of changes to City revenues and
expenditures that occurred after the adoption of the Budget in December due to information being
unavailable for entry at the time. The majority of the changes included have previously been approved by
Council and are a result of items moving from 2022 to 2023. The specific proposed changes are shown in
detail on the following pages.
Since many of the individual actions in this amendment require funding to come from reserves (money
unspent at the end of the fiscal year automatically rolls into reserves/fund balance and must then be pulled
from reserves for use in later budgets), approval of the ordinance will require a super majority of the
entire Council, or five (5) affirmative votes.
Attached is a detailed list of proposed budget changes and the budget amendment ordinance which
includes an “Exhibit A” listing a comparision of total revenues and expenditures by fund for the 2023
Adopted Budget and proposed 2023 Amendment #1 to easily show changes in revenue, expenses, and
fund balance in each fund.
Summary: The 2023 Budget is being amended for the first time to adjust a variety of funds to reflect
changes in revenues and expenditures that have occurred during the first few months of 2023, as well as
to carry budget allocations from 2022 into 2023 for grants and programs. This is the second reading of
the ordinance. Since the first reading there have not been any changes to the amendment.
As this budget amendment includes new revenues as well as an authorization to use funds from reserves,
the ordinance must be approved by a super-majority of the entire Council, or at least five (5) affirmative
votes.
Funding: Please see the detailed summary attached to this memo.
Recommendation: The requested action for this issue is as follows:
1. Conduct the second reading of the ordinance for the first amendment to the 2023 Budget;
and
2. Adopt the ordinance.
April 18, 2023 G - 1
Tonight’s meeting will include the second reading and adoption of the budget amendment ordinance.
Since the first reading there have not been any changes to the amendment.
Funding Overview:
Please see the “Detailed list of proposed budget changes” attachment to this memo for a full listing of all
funding changes.
Attached: List of proposed budget changes.
2023 Budget Ordinance – Amendment #1.
Exhibit A.
April 18, 2023 G - 2
BUDGET AMENDMENT ITEM Revenues Expenditure Account Notes
Municipal Code Audit Work - 84,400 001-1210-513-41-50 Carried from 2022
Housing Action Plan and Implementation Grant 100,000 - 001-4060-334-04-20 Carried from 2022
Housing Action Plan and Implementation Grant spending - 100,000 001-4060-558-41-50 Carried from 2022
Façade Improvement Funds - 20,000 001-4071-558-49-91 Carried from 2022
Downtown Resource Officer Donations 60,000 - 001-5022-367-1100 Council approved 12/20/22
Downtown Resource Officer Funding 60,000 - 001-2001-316-4010 Council approved 12/20/22
Downtown Resource Officer Position - 120,000 001-5022-521-10xx Council approved 12/20/22
WASPC REdisCOVERY Grant 116,000 - 001-5022-334-01-10 Council approved 12/06/22
WASPC REdisCOVERY Grant - 116,000 001-5022-521-41-50 Council approved 12/06/22
TOTAL GENERAL FUND 336,000 440,400
Fiero Marine Life Center - 15,500 101-1430-557-41-50 Council approved 11/15/22
Port Angeles Baseball - 50,000 101-1430-557-41-50 Council approved 11/15/22
Port Angeles Fine Arts Center - 75,000 101-1430-557-41-50 Council approved 11/15/22
Lincoln Park BMX Track - 50,000 101-1430-557-41-50 Council approved 11/15/22
Port Angeles Downtown Activity Center - 25,000 101-1430-557-41-50 Council approved 11/15/22
TOTAL LODGING TAX FUND - 215,500
Traffic Signal Control Cabinet; Carried from 2022 - 32,100 102-7230-542-31-25 Council approved 11/15/22
TOTAL STREETS FUND - 32,100
CDBG CV-1 & 2 susbistence grant 605,600 - 172-4130-333-14-22 Carried from 2022
CDBG CV-1 & 2 susbistence grant spending - 605,600 172-4130-559-52-01 Carried from 2022
TOTAL AFFORDABLE HOUSING FUND 605,600 605,600
Complex Hydraulic System Repair - 50,000 402-7382-534-48-10 Carried from 2022
Complex Hydraulic System Repair - 20,000 402-7382-534-31-20 Carried from 2022
Trench Shoring Project - 10,000 402-7380-534-35-01 Carried from 2022
TOTAL WATER FUND - 80,000
Trench Shoring Project - 10,000 403-7480-535-35-01 Carried from 2022
CAPWW; Carried from 2022 - 23,000 403-7480-594-64-10 Carried from 2022
TOTAL WASTEWATER FUND - 33,000
AWC Alternative Response Team (ART) Pilot Program 235,200 - 409-6027-334-06-90 Council approved 11/15/22
AWC Alternative Response Team (ART) pass to OPCC - 235,200 409-6027-526-41-50 Council approved 11/15/22
TOTAL MEDIC 1 FUND 235,200 235,200
Detailed List of Proposed Budget Changes - 2023 Budget Amendment #1
April 18, 2023 G - 3
-1-
ORDINANCE NO._____
AN ORDINANCE of the City of Port Angeles, Washington, amending
the City’s 2023 budget.
WHEREAS, the Annual Budget of the City of Port Angeles for the year 2023, was
adopted, approved and confirmed on December 6, 2022, in Ordinance No. 3705; and
WHEREAS, now there exists an emergency that could not reasonably have been
foreseen when the 2023 budget was adopted,
NOW, THEREFORE, the City Council of the City of Port Angeles, Washington, do
ordain as follows:
Section 1. The Council finds and declares:
A. There exists an emergency that could not reasonably have been foreseen when
the 2023 budget was adopted. The facts constituting the emergency include,
but are not limited to:
1. Unanticipated additional revenue; and
2. Unanticipated additional expenditures primarily for projects previously
authorized by Council that were not complete in the previous year’s budget.
B. These facts require amendments to the adopted budget in order to meet the
expenses of government of the City for the fiscal year ending December 31,
2023.
Section 2. On the basis of the foregoing findings, pursuant to RCW 35A.33.090,
the City Council declares that an emergency exists.
Section 3. To respond to the budget emergency, the 2023 budget appropriation for
each separate fund as set forth in Ordinance No. 3705, is amended as shown in the attached
Exhibit A.
April 18, 2023 G - 4
-2-
Section 4. The City Clerk and the codifiers of this ordinance are authorized to
correct scrivener’s errors, references, ordinance numbering, section and subsection numbers
and any references thereto.
Section 5. This Ordinance exercises authority granted exclusively to the City
Council and is not subject to referendum. It shall be in force and take effect 5 (five) days
after publication according to law.
PASSED by the City Council of the City of Port Angeles by a vote of one more than
the majority of all members of the legislative body at a regular meeting of said Council on the
18th day of April, 2023.
_______________________________
Kate Dexter, Mayor
ATTEST: APPROVED AS TO FORM:
_______________________________ _______________________________
Kari Martinez-Bailey, City Clerk William E. Bloor, City Attorney
PUBLISHED: ___________________
By Summary
April 18, 2023 G - 5
CITY of PORT ANGELES
2023 Budget Ordinance - Amendment #1
Exhibit A
Fund Div.Name / Description Beginning Revenue Expenditures Ending Beginning Revenue Expenditures Ending
Balance - Est.Balance - Est.Balance - Est. Balance - Est.
GENERAL FUND (Note: Divisional totals for reference only)
Fund Balance:6,703,665 5,798,465 6,703,665 5,694,165
001.1160 City Council 40,700 71,800 40,700 71,800
001.1210 City Manager 343,300 590,400 343,300 674,800
001.1211 Customer Commitment - 2,500 - 2,500
001.1220 Human Resources 104,300 304,300 104,300 304,300
001.1230 City Clerk 131,500 294,800 131,500 294,800
001.2001 Finance - Revenue 15,120,700 - 15,180,800 -
001.2020 Finance Administration 155,100 971,400 155,100 971,400
001.2023 Accounting 802,000 1,101,000 802,000 1,101,000
001.2025 Customer Service 1,329,100 1,283,200 1,329,100 1,283,200
001.2070 Reprographics 37,900 46,600 37,900 46,600
001.3030 City Attorney 217,200 595,300 217,200 595,300
001.3012 Jail Contributions - 1,041,100 - 1,041,100
001.4060 Planning 330,800 692,600 430,800 792,600
001.4050 Building 674,200 268,500 674,200 268,500
001.4071 Economic Development - 51,900 - 71,900
001.5010 Police Administration 1,000 653,600 1,000 653,600
001.5012 PenCom/Capital Transfers 370,100 703,800 370,100 703,800
001.5021 Police Investigation 2,700 1,196,300 2,700 1,196,300
001.5022 Police Patrol 659,400 4,073,300 835,400 4,309,300
001.5026 Police Reserves & Volunteers - 10,100 - 10,100
001.5029 Police Records 12,200 484,400 12,200 484,400
001.5050 Police Facilities Maintenance 16,300 8,600 16,300 8,600
001.6010 Fire Administration 64,200 246,300 64,200 246,300
001.6012 PenCom/Medic I Support - 372,400 - 372,400
001.6020 Fire Suppression - 1,546,600 - 1,546,600
001.6030 Fire Prevention 9,600 115,500 9,600 115,500
001.6045 Fire Training 3,000 119,600 3,000 119,600
001.6050 Fire Facilities Maintenance - 61,100 - 61,100
001.7010 Public Works Administration 1,241,400 2,545,100 1,241,400 2,545,100
001.7012 Public Works CIP - 15,000 - 15,000
001.7032 Public Works Telecommunications 32,800 32,800 32,800 32,800
001.8010 Parks Administration - 295,900 - 295,900
001.8012 Senior Center 29,500 168,500 29,500 168,500
001.8050 Ocean View Cemetery 135,000 194,800 135,000 194,800
001.8080 Park Facilities - 2,239,200 - 2,239,200
001.8112 Senior Center Facilities - 60,400 - 60,400
001.8131 Central Services Facilities 470,200 496,600 470,200 496,600
001.8155 Facility Rentals 72,000 125,300 72,000 125,300
001.8221 Sports Programs - 132,300 - 132,300
001.9029 General Unspecified 395,500 494,000 395,500 494,000
001 TOTAL General Fund 6,703,665 22,801,700 23,706,900 5,798,465 6,703,665 23,137,800 24,147,300 5,694,165
SPECIAL REVENUE FUNDS
101 Lodging Excise Tax Fund 845,639 764,100 725,900 883,839 845,639 764,100 879,100 730,639
102 Street Fund 483,748 1,928,600 2,007,400 404,948 483,748 1,928,600 2,039,500 372,848
105 Real Estate Excise Tax-1 (REET-1) Fund 999,051 321,800 567,600 753,251 999,051 321,800 567,600 753,251
107 PenCom Fund 1,627,522 4,314,200 4,937,200 1,004,522 1,627,522 4,314,200 4,937,200 1,004,522
160 Real Estate Excise Tax-2 (REET-2) Fund 679,527 320,100 556,300 443,327 679,527 320,100 556,300 443,327
165 Business Improvement Area 76,355 35,000 - 111,355 76,355 35,000 - 111,355
172 Port Angeles Housing Rehab. Fund 1,500,240 550,100 7,000 2,043,340 1,500,240 1,155,700 612,600 2,043,340
175 Code Compliance Fund 39,421 261,900 261,900 39,421 39,421 261,900 261,900 39,421
TOTAL Special Revenue Funds 6,251,503 8,495,800 9,063,300 5,684,003 6,251,503 9,101,400 9,854,200 5,498,703
2023 Budget Amendment #12023 Budget Funds
April 18, 2023 G - 6
CITY of PORT ANGELES
2023 Budget Ordinance - Amendment #1
Exhibit A
Fund Div.Name / Description Beginning Revenue Expenditures Ending Beginning Revenue Expenditures Ending
Balance - Est.Balance - Est.Balance - Est.Balance - Est.
DEBT SERVICE FUNDS
216 2014 LTGO Bond (Landfill Bluff Stabilization) Fund 182,963 604,300 600,800 186,463 182,963 604,300 600,800 186,463
217 2015 LTGO Bond - Refunding (W.U.G.A.)15,153 232,900 232,200 15,853 15,153 232,900 232,200 15,853
TOTAL Debt Service Funds 198,116 837,200 833,000 202,316 198,116 837,200 833,000 202,316
ENTERPRISE / UTILITY FUNDS
401 Electric Utility Fund 12,319,957 28,876,200 27,578,500 13,617,657 12,319,957 28,876,200 27,578,500 13,617,657
402 Water Utility Fund 14,020,671 7,447,300 9,328,500 12,139,471 14,020,671 7,447,300 9,408,500 12,059,471
403 Wastewater Utility Fund 3,029,913 7,685,900 8,388,200 2,327,613 3,029,913 7,685,900 8,421,200 2,294,613
404 Solid Waste Utility Fund 1,137,072 12,449,600 12,880,700 705,972 1,137,072 12,449,600 12,880,700 705,972
406 Stormwater Utility Fund 2,181,687 2,768,400 3,214,400 1,735,687 2,181,687 2,768,400 3,214,400 1,735,687
409 Medic 1 Utility Fund 961,954 3,550,300 3,593,000 919,254 961,954 3,785,500 3,828,200 919,254
413 Harbor Clean-up Fund (152,367)2,050,600 2,050,600 (152,367)(152,367)2,050,600 2,050,600 (152,367)
421 Conservation Fund 583,852 348,000 347,500 584,352 583,852 348,000 347,500 584,352
TOTAL Enterprise / Utility Funds 34,082,739 65,176,300 67,381,400 31,877,639 34,082,739 65,411,500 67,729,600 31,764,639
INTERNAL SERVICE FUNDS
501 Equipment Services 2,790,602 2,413,600 2,458,900 2,745,302 2,790,602 2,413,600 2,458,900 2,745,302
502 Information Technology 929,458 2,336,700 2,412,400 853,758 929,458 2,336,700 2,412,400 853,758
503 Self-Insurance 706,778 6,346,500 6,346,500 706,778 706,778 6,346,500 6,346,500 706,778
TOTAL Internal Service Funds 4,426,838 11,096,800 11,217,800 4,305,838 4,426,838 11,096,800 11,217,800 4,305,838
FIDUCIARY FUNDS
602 Firemen's Pension Fund 253,775 19,200 69,400 203,575 253,775 19,200 69,400 203,575
TOTAL Fiduciary Funds 253,775 19,200 69,400 203,575 253,775 19,200 69,400 203,575
PERMANENT FUNDS
601 Cemetery Endowment Fund 424,606 3,400 - 428,006 424,606 3,400 - 428,006
TOTAL Permanent Funds 424,606 3,400 - 428,006 424,606 3,400 - 428,006
CAPITAL FUNDS
310 Governmental Capital Improvement Fund 3,090,844 4,239,100 5,003,300 2,326,644 3,090,844 4,239,100 5,003,300 2,326,644
312 Transportation Capital 3,600,652 7,001,900 6,958,500 3,644,052 3,600,652 7,001,900 6,958,500 3,644,052
316 Governmental Park Improvement Fund 317,128 9,600 - 326,728 317,128 9,600 - 326,728
451 Electric Capital Fund 9,832,778 800,000 6,019,900 4,612,878 9,832,778 800,000 6,019,900 4,612,878
452 Water Capital Fund 4,883,911 765,000 4,132,000 1,516,911 4,883,911 765,000 4,132,000 1,516,911
453 Wastewater Capital Fund 4,306,852 978,500 3,417,300 1,868,052 4,306,852 978,500 3,417,300 1,868,052
454 Solid Waste Capital Fund 1,809,060 1,677,600 2,867,300 619,360 1,809,060 1,677,600 2,867,300 619,360
456 Stormwater Capital Fund 3,143,442 443,000 2,588,500 997,942 3,143,442 443,000 2,588,500 997,942
463 Combined Sewer Overflow Capital Fund 1,761,958 4,039,300 5,703,400 97,858 1,761,958 4,039,300 5,703,400 97,858
TOTAL Capital Funds 32,746,625 19,954,000 36,690,200 16,010,425 32,746,625 19,954,000 36,690,200 16,010,425
SUB-TOTAL ALL FUNDS 85,087,867 128,384,400 148,962,000 64,510,267 85,087,867 129,561,300 150,541,500 64,107,667
Reserves - Designated 1,975,100 1,975,100
Reserves Used 22,552,700 22,955,300
TOTAL CITYWIDE ALL FUNDS 85,087,867 150,937,100 150,937,100 64,510,267 85,087,867 152,516,600 152,516,600 64,107,667
2023 Budget Amendment #1Funds2023 Budget
April 18, 2023 G - 7
Date: April 18, 2023
To: City Council
From: Nathan A. West, City Manager
Bill Bloor, City Attorney
Abbi Fountain, Human Resources Manager
Subject: City Council Compensation
Background / Analysis:
At the March 7, 2023 meeting City Council discussed options for changes to Councilmember
compensation. Council compensation has not been changed since at least 2003. During the March
meeting Council unanimously approved a motion to:
“Direct staff to draft an ordinance with the proposed increase in Council compensation at twice
the state minimum rate to include accountability mechanisms with audits, and to include two
additional alternatives to the original proposed increase, to include an option that doubles the
monthly compensation, and a solution to be offered by staff for consideration at a future
meeting.”
It is important to share that City Council members may not increase their salaries during their own term of
office. The Washington State Constitution establishes this rule:
The salary of any county, city, town, or municipal officers shall not be increased . . . or
diminished after his election, or during his term of office; . . . (Wash. Const. Art. XI, §8)
Summary: At the March 7, 2023 meeting City Council discussed options for changes to Council
member compensation. Council compensation has not been changed since at least 2003. Concluding this
Council discussion staff was provided direction to return details regarding three options for potential
changes, including hourly compensation, doubling the current rate and a staff recommended option.
Direction also included options for a travel stipend. These options have been researched by staff and are
provided with this memo for Council consideration.
Funding: The City Council budget currently includes $56,800 for compensation. The selection of any of
the options included in the memo would result in an increase to future budgets. This increase will be
offset through a combination of allocated costs to utilities for services provided by Council members and
General Fund tax funds. A cost comparison of each option and the current budget is included as an
attachment for reference.
Recommendation:
1.) Review and discuss the three options and associated ordinances as presented by Staff.
2.) Continue this item to a future Council meeting for first reading.
April 18, 2023 G - 8
If, prior to the Council election in 2023, the City Council votes to increase the compensation of Council
members, the increase in compensation would be effective only for members who are elected in 2023 and
elected thereafter. In contrast, if the City Council waits until after the Council election in 2023 to
increase the compensation, the increase in compensation would be effective only for members who are
elected in 2025 and thereafter.
As directed, staff has provided options including the following:
• Option One – Change from a monthly fixed amount to an hourly amount.
• Option Two – Double the current monthly fixed amount
• Option Three – Staff recommendation: increase compensation to an equivalent amount as
compared to similar size cities with a Council-Manager form of government.
• Option to add a travel stipend to any of the above options
Attached are three Ordinances to be considered by City Council.
Option One – Ordinance #1 –
This option changes the monthly fixed amount of Council compensation to an hourly rate. For a Council
member whose term of office which began on or subsequent to January 1, 2024, to determine the salary to
which each council member is entitled to receive each month, the Council member will prepare a
timesheet detailing the hours worked on City matters.
This hourly option is suggested at a rate of $31.48, twice the current Washington State minimum wage,
and will also require the City to deduct state mandates from compensation; including workers
compensation, paid family medical leave and long-term care. This approach could trigger Council
participation in the PERS retirement program. This would require both Council and the City to contribute
funds to the program. Additionally, it is the opinion of the Legal Department that hourly compensation is
prohibited by the state constitution. Article XI, section 8 of the constitution states that:
The salary of any . . . municipal officers shall not be increased except as provided in
section 1 of Article XXX or diminished after his election, or during his term of office; . . .
Since 1896, the word “salary” in that provision consistently has been interpreted to mean a fixed amount
of compensation paid per period of time – e.g., a fixed salary per month – and “not on the amount of the
service rendered" by the officer.” Cox v. Holmes, 14 Wash. 255, 44 P. 262 (1896); AGO 1996, No. 2.
The proposal to compensate Council members on an hourly basis would violate this constitutional
provision and thus would be invalid. For these reasons, the Legal Department advises Council not to
adopt Option 1.
Option Two – Ordinance # 2 –
This option doubles the current compensation. For a Council member whose term of office which began
on or subsequent to January 1, 2024, double the current monthly fixed amount.
Current:
1. The Mayor shall receive $650.00 per month;
2. The Deputy Mayor shall receive $600.00 per month;
3. All other City Council members shall receive $550.00 per month.
April 18, 2023 G - 9
Proposed:
1. The Mayor shall receive $1,300.00 per month;
2. The Deputy Mayor shall receive $1,200.00 per month;
3. All other City Council members shall receive $1,100.00 per month.
Option Three – Ordinance #3 –
This option followed staff’s standard process for reviewing and evaluating compensation for City staff
which includes looking at comparable cities. For a Council member whose term of office which began on
or subsequent to January 1, 2024, increase compensation to an equivalent amount as compared to similar
size cities with Council-Manager form of government.
City staff performed a salary survey based on cities with a population of 50% less than Port Angeles and
50% above (approximately 10,000-30,000) and whose form of government is Council-Manager to
determine an average compensation with these comparable cities. The average monthly compensation
amount is as follows:
1. Mayor - $1,035.07
2. City Council member - $723.47
Proposed:
1. The Mayor shall receive $1,000.00 per month;
2. The Deputy City Mayor shall receive $900.00 per month;
3. All other City Council members shall receive $725.00 per month.
Optional addition to any of the three options listed – Travel stipend
Effective January 1, 2024, Council members shall be eligible to receive a per diem stipend of
$125 per day for out-of-town travel for events related to their work as Council members.
These ordinances are offered for Council’s consideration. Staff requests that City Council discuss the
options provided and select one of the three ordinances to continue to a future Council meeting. Staff also
requests Council determine if the option for a travel stipend should be included within the selected
ordinance.
Funding Overview:
The City Council budget currently includes $56,800 for compensation. The selection of any of the options
included in the memo would result in an increase to future budgets. This increase will be offset through a
combination of allocated costs to utilities for services provided by Council members and General Fund
tax funds.
Attachments:
▪ Ordinance changing Council compensation to an hourly rate
▪ Ordinance doubling Council compensation
▪ Ordinance increasing Council compensation to the average of comparable cities.
▪ Cost comparison sheet demonstrating budget impacts of each of the three options.
April 18, 2023 G - 10
Hourly Rate - $31.48 Estmated Hours per month 45
Proposed Current Change
Salary 118,994.40 48,000.00 70,994.40
FICA 9,103.07 3,672.00 5,431.07
PERS (optional)12,363.52 - 12,363.52
Workers Compensation 5,000.00 5,000.00 -
Family Medical Leave 191.58 77.28 114.30
Long-term care 690.17 - 690.17
Total 146,342.74 56,749.28 89,593.46
*Includes yearly compensation
Mayor $1,300, Deputy Mayor $1,200, Councilmember $1,100 monthly
Proposed Current Change
Salary 96,000.00 48,000.00 48,000.00
FICA 7,344.00 3,672.00 3,672.00
PERS (not applicable)- - -
Workers Compensation 5,000.00 5,000.00 -
Family Medical Leave 154.56 77.28 77.28
Long-term care - - -
Total 108,498.56 56,749.28 51,749.28
*Includes yearly compensation
Mayor $1,000, Deputy Mayor $900, Councilmember $725 monthly
Proposed Current Change
Salary 66,300.00 48,000.00 18,300.00
FICA 5,071.95 3,672.00 1,399.95
PERS (not applicable)- - -
Workers Compensation 5,000.00 5,000.00
Family Medical Leave 106.74 77.28 29.46
Long-term care - -
Total 76,478.69 56,749.28 19,729.41
*Includes yearly compensation
OPTION 1 - HOURLY COMPENSATION
OPTION 2 - DOUBLE CURRENT COMPENSATION
OPTION 3 - COMPARABLE AVERAGES
-
April 18, 2023 G - 11
1
ORDINANCE NO. __________
AN ORDINANCE of the City of Port Angeles, Washington establishing salaries
and benefits for the City Council of the City of Port Angeles repealing
Ordinance No. 3153.
WHEREAS, the City of Port Angeles is classified as a non-charter code city and
operates under the authority of Title 35A RCW; and
WHEREAS, Article XI, Section 8 of the Washington State Constitution provides
that an increase or reduction in the compensation of elected municipal officials shall not
become effective during the terms of the current council members; and
WHEREAS, the City Council desires to address the compensation of elected
municipal officials in an orderly fashion;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT
ANGELES DO HEREBY ORDAIN AS FOLLOWS:
Section 1. Section 2.02.020 PAMC is repealed in its entirety.
Section 2. Effective January 1, 2024, a new Section 2.02.020 is adopted that will
read as follows:
A. Effective January 1, 2024, and for the duration of the council member’s current
term of office, the salary for a council member whose term of office began prior to January 1,
2024 shall remain as follows:
1. The Mayor shall receive $650.00 per month;
2. The Deputy Mayor shall receive $600.00 per month;
3. All other City Council members shall receive $550.00 per month.
B. Effective January 1, 2024, the salary for a council member whose term of office
began on or subsequent to January 1, 2024, shall be $31.48, for the time spent by the council
member on City matters.
April 18, 2023 G - 12
2
C. For a council member whose term of office which began on or subsequent to
January 1, 2024, to determine the salary to which each council member is entitled to receive
each month, the council member will prepare a timesheet detailing the hours worked on City
matters. This timesheet will be on a form created by the Finance Department, which shall set
forth a brief description of the matters on which the council member expended his or her time,
as well as the amount of time spent on each matter. The time will be recorded in increments of
not less than 15 minutes, or 0.25 hours. The timesheet will be signed by the council member
attesting to its accuracy.
D. For a council member whose term of office which began on or subsequent to
January 1, 2024, in addition to salaries based on time spent on City matters, council members
are entitled to reimbursement for their actual and necessary expenses incurred in the
performance of the duties of their offices. To obtain reimbursement for those expenses, a
claim form shall be completed by the council member, on a form created by the Department of
Finance, setting forth the expenses for which the council member is requesting reimbursement.
The Department of Finance shall provide guidance regarding any attachments to this form that
it deems necessary for reimbursement, such as copies of invoices or statements.
E. For a council member whose term of office which began on or subsequent to
January 1, 2024 the timesheets and reimbursement forms will be submitted to the City Clerk no
later than the end of the fifth day of the following month for inclusion in the City Council
packet for the second City Council meeting of that month. City Council shall review the
submitted timesheets and reimbursement requests at the second City Council meeting of the
month and approve or disapprove payment in accordance with the submitted timesheets and
reimbursement requests.
April 18, 2023 G - 13
3
F. For a council member whose term of office which began on or subsequent to
January 1, 2024, subsequent to that meeting the City’s Finance Department will process the
approved timesheets and reimbursement requests for payment to the council members on the
next regular pay period following Council approval.
Section 3 - Corrections. The City Clerk and the codifiers of this ordinance are
authorized to make necessary corrections to this ordinance including, but not limited to, the
correction of the scrivener’s/clerical errors, references, ordinance numbering,
section/subsection numbers and any references thereto.
Section 4 - Severability. If any provisions of this Ordinance, or its application to
any person or circumstances, are held invalid, the remainder of the Ordinance, or application of
the provisions of the Ordinance to other persons or circumstances, is not affected.
PASSED by the City Council of the City of Port Angeles at a regular meeting of
said Council held on the _____ day of __________, 2023.
_________________________________
Kate Dexter, Mayor
APPROVED AS TO FORM:
_____________________________
William E. Bloor, City Attorney
ATTEST:
_____________________________
Kari Martinez-Bailey, City Clerk
PUBLISHED: _____________, 2023
By Summary
April 18, 2023 G - 14
1
ORDINANCE NO. __________
AN ORDINANCE of the City of Port Angeles, Washington establishing salaries
and benefits for the City Council of the City of Port Angeles repealing
Ordinance No. 3153.
WHEREAS, the City of Port Angeles is classified as a non-charter code city and
operates under the authority of Title 35A RCW; and
WHEREAS, Article XI, Section 8 of the Washington State Constitution provides
that an increase or reduction in the compensation of elected municipal officials shall not
become effective during the terms of the current council members; and
WHEREAS, the City Council desires to address the compensation of elected
municipal officials in an orderly fashion;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT
ANGELES DO HEREBY ORDAIN AS FOLLOWS:
Section 1. Section 2.02.020 PAMC is repealed in its entirety.
Section 2. Effective January 1, 2024, a new Section 2.02.020 is adopted that will
read as follows:
A. Effective January 1, 2024, and for the duration of the council member’s current
term of office, the salary for a council member whose term of office began prior to January 1,
2024 shall remain as follows:
1. The Mayor shall receive $650.00 per month;
2. The Deputy Mayor shall receive $600.00 per month;
3. All other City Council members shall receive $550.00 per month.
B. Effective January 1, 2024, the salary for a council member whose term of office
which began on or subsequent to January 1, 2024, shall be as follows:
1. The Mayor shall receive $1,300.00 per month;
2. The Deputy Mayor shall receive $1,200.00 per month;
April 18, 2023 G - 15
2
3. All other City Council members shall receive $1,100.00 per month.
Section 3 - Corrections. The City Clerk and the codifiers of this ordinance
are authorized to make necessary corrections to this ordinance including, but not
limited to, the correction of the scrivener’s/clerical errors, references, ordinance numbering,
section/subsection numbers and any references thereto.
Section 4 - Severability. If any provisions of this Ordinance, or its application to any
person or circumstances, are held invalid, the remainder of the Ordinance, or application of the
provisions of the Ordinance to other persons or circumstances, is not affected.
PASSED by the City Council of the City of Port Angeles at a regular meeting of
said Council held on the _____ day of __________, 2023.
_________________________________
Kate Dexter, Mayor
APPROVED AS TO FORM:
_____________________________
William E. Bloor, City Attorney
ATTEST:
_____________________________
Kari Martinez-Bailey, City Clerk
PUBLISHED: _____________, 2023
By Summary
April 18, 2023 G - 16
1
ORDINANCE NO. __________
AN ORDINANCE of the City of Port Angeles, Washington establishing salaries
and benefits for the City Council of the City of Port Angeles repealing
Ordinance No. 3153.
WHEREAS, the City of Port Angeles is classified as a non-charter code city and
operates under the authority of Title 35A RCW; and
WHEREAS, Article XI, Section 8 of the Washington State Constitution provides
that an increase or reduction in the compensation of elected municipal officials shall not
become effective during the terms of the current council members; and
WHEREAS, the City Council desires to address the compensation of elected
municipal officials in an orderly fashion;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT
ANGELES DO HEREBY ORDAIN AS FOLLOWS:
Section 1. Section 2.02.020 PAMC is repealed in its entirety.
Section 2. Effective January 1, 2024, a new Section 2.02.020 is adopted that will
read as follows:
A. Effective January 1, 2024, and for the duration of the council member’s current
term of office, the salary for a council member whose term of office began prior to January 1,
2024 shall remain as follows:
1. The Mayor shall receive $650.00 per month;
2. The Deputy Mayor shall receive $600.00 per month;
3. All other City Council members shall receive $550.00 per month.
B. Effective January 1, 2024, the salary for a council member whose term of office
which began on or subsequent to January 1, 2024, shall be as follows:
1. The Mayor shall receive $1,000.00 per month;
2. The Deputy Mayor shall receive $900.00 per month;
April 18, 2023 G - 17
2
3. All other City Council members shall receive $725.00 per month.
Section 2 - Corrections. The City Clerk and the codifiers of this ordinance
are authorized to make necessary corrections to this ordinance including, but not
limited to, the correction of the scrivener’s/clerical errors, references, ordinance numbering,
section/subsection numbers and any references thereto.
Section 3 - Severability. If any provisions of this Ordinance, or its application to any
person or circumstances, are held invalid, the remainder of the Ordinance, or application of the
provisions of the Ordinance to other persons or circumstances, is not affected.
PASSED by the City Council of the City of Port Angeles at a regular meeting of
said Council held on the _____ day of __________, 2023.
_________________________________
Kate Dexter, Mayor
APPROVED AS TO FORM:
_____________________________
William E. Bloor, City Attorney
ATTEST:
_____________________________
Kari Martinez-Bailey, City Clerk
PUBLISHED: _____________, 2023
By Summary
April 18, 2023 G - 18
Per Diem Alternative
Effective January 1, 2024, Council members shall be eligible to receive a per diem
stipend of $125 per day for out-of-town travel for events related to their work as Council
members. Participation in these out-of-town events by the Council member must be
explicitly approved by City Council prior to the attendance at the events by the Council
member. The request for the per diem stipend will be made on a form to be designed by
the Department of Finance. The requesting Council member will submit the completed
form to the Department of Finance for payment.
April 18, 2023 G - 19
Date:
To:
From:
Subject:
April 18, 2023
City Council
Sarina Carrizosa, Finance Director
Resolution Updating Section 9.13 of the City’s Financial Policies Regarding Leases
Background / Analysis: The City’s Financial Policies must be updated to include new guidance
issued by the Governmental Accounting Standards Board (GASB) in regard to leases. These GASB
standards are required to be implemented in financial statements starting in 2022. The GASB statement
provides guidance that identifies leases as assets and liabilities and categorizes leases into one of three
areas:
▪Short-term leases are limited to a noncancellable term of 12 months or less.
▪Transfer of ownership lease contracts cannot contain termination options and the underlying
contract transfers ownership to the lessee before the contract expiration.
▪All other lease types include contracts or agreements that include the right of use of property or
assets in exchange for payment.
Additionally, GASB guidance requires:
▪All lease contracts to identify lease term, lease payment length and options, and a rate of interest.
▪A database of lease contracts must be complied and updated regularly.
▪A lease asset capital threshold must be determined and established by the City. For reporting
purposes, the threshold amount selected by Staff is $10,000 in line with recommended guidance
for capitalization of assets.
▪Reporting and accounting of leases must be in accordance with the GASB 87 statement and
included in the City’s Annual Comprehensive Financial Report (ACFR) based on fund and lease
type. This will require reporting leases in one of the following standards:
▪The lease liability will initially be measured at the present value of payments
expected to be made during the lease term.
▪The lease asset will be measured as the sum of the lease liability, plus any initial
direct costs and lease payments prior to the lease start, less any incentives.
Summary: The Governmental Accounting Standards Board (GASB) recently issued Statement 87 which
includes guidance pertaining to leases. This guidance is required for implementation in the 2022 Annual
Comprehensive Financial Statements (ACFR) and defines leases as assets or liabilities. Lease contracts in
this statement are also grouped into short-term leases, contracts that transfer ownership and other lease
types. As part of the implementation of the GASB 87 requirements the City must also set a lease asset
capitalization threshold and include the new standards in the City’s Financial Policies. These updates are
included in the Financial Policies in Section 9.13 as an attachment to the resolution for Council reference.
Funding: No funding is associated with these updates.
Recommendation: Pass the resolution amending Section 9.13 of the City’s Financial Policies to
include new Governmental Accounting Standards Board guidance regarding lease reporting.
April 18, 2023 H - 1
▪Both a lease repayment schedule and an amortization schedule of the intangible
right-to-use the asset may need to be prepared.
▪The other financing source should be equal to the lease liability.
Finally, the Washington State Auditor’s Office will review the implementation of the GASB 87 – Leases
statement as part of the City’s Annual Audit to ensure leases are accurately and fairly reported. Failure to
appropriately implement the new guidance may result in an audit finding. City Staff have prepared the
2022 ACFR to include the GASB lease standard in compliance with preparation for the City’s audit.
In addition to the changes mentioned above a minor correction is also being made to Section 9.13.1 of to
ensure consistency with other sections of the Financial Policies and the Port Angeles Municipal Code.
Staff is recommending Council pass the attached resolution updating section 9.13 of the Financial policies
to include GASB 87 - Leases guidance.
Funding Overview: No funding is associated with these updates.
Attached: Resolution updating section 9.13 of the Financial policies.
April 18, 2023 H - 2
RESOLUTION NO. ______
A RESOLUTION of the City Council adopting the City’s amended
Financial Policy and rescinding Resolution 04-18.
WHEREAS, on March 6, 2018, a Financial Policy for the City of Port Angeles was
adopted by Resolution 04-18; and
WHEREAS, a Financial Policy serves as a guide for executing the budget and
controlling the financial parameters of the various City programs and services funded in said
budget; and
WHEREAS, it is in the best interest of City government to periodically update and
revise its Financial Policy to ensure the legal use of financial resources through an effective
system of internal controls and to maintain appropriate financial capacity for present and
future needs.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port
Angeles that the Financial Policy attached hereto as Exhibit A is hereby adopted, and
Resolution 04-18 is hereby rescinded.
PASSED by the City Council of the City of Port Angeles at a regular meeting of said
Council held on the 18th day of April, 2023.
___________________________
Kate Dexter, Mayor
ATTEST:
_______________________________
Kari Martinez-Bailey, City Clerk
APPROVED AS TO FORM:
_______________________________
William E. Bloor, City Attorney
April 18, 2023 H - 3
FINANCIAL POLICIES April 18, 2023 H - 4
Financial Policies
City of Port Angeles
2 | P a g e
TABLE OF CONTENTS
1. FINANCIAL POLICIES .............................................................................................................................................................. 4
1.1. Goals & Objectives:............................................................................................................................................................... 4
1.2. Fiduciary Responsibility: ....................................................................................................................................................... 4
1.3. Annual Review and Recommendations for Changes to Financial Policies: .............................................................................. 4
2. LONG-RANGE FINANCIAL POLICIES ........................................................................................................................................ 5
2.1. Resolution of Conflict between Policies:................................................................................................................................ 5
2.2. Ability to Pay: ....................................................................................................................................................................... 5
2.3. Use of Reserves: ................................................................................................................................................................... 5
2.4. Unassigned Fund Balance: .................................................................................................................................................... 5
2.5. General Fund Subsidy to Street Fund and Medic I Utility Fund: .............................................................................................. 6
2.6. Issuance of New Debt and Ability to Pay: .............................................................................................................................. 6
2.7. Considerations for Debt Financing: ....................................................................................................................................... 6
2.8. Disposition of Unused Property. ........................................................................................................................................... 6
2.9. Use of Highly Volatile Funding Sources: ................................................................................................................................. 7
2.10. Consideration for Smaller Scale Public Works Projects: ......................................................................................................... 7
2.11. Capital Funding Priorities: ..................................................................................................................................................... 7
2.12. Use of One-time Revenues: ................................................................................................................................................... 7
2.13. Property Tax and Future Budgets: ......................................................................................................................................... 7
2.14. Use of Banked Property Tax Capacity: ................................................................................................................................... 7
2.15. Utility Excise Tax Rates: ........................................................................................................................................................ 8
2.16. Setting of Fees and Charges for Building Permits: .................................................................................................................. 8
2.17. Setting of Fees and Charges for Parks and Recreation Programs and Services: ....................................................................... 8
2.18. Utility Rate Design: ............................................................................................................................................................... 8
2.19. Economic Development Fund:............................................................................................................................................... 8
2.20. Implementation of Utility Rate Increases: ............................................................................................................................. 9
2.21. Annexation and Cost of Service Analysis: .............................................................................................................................. 9
2.22. Employee Salaries and Benefits: ........................................................................................................................................... 9
2.23. Employee Contributions for Health Insurance: ...................................................................................................................... 9
2.24. Payments by the City to Vendors and Employees: ................................................................................................................. 9
3. OPERATING POLICIES .......................................................................................................................................................... 10
3.1. Goals .................................................................................................................................................................................. 10
3.2. Revenue Policies ................................................................................................................................................................. 10
3.3. Expenditure Policies ........................................................................................................................................................... 11
3.4. Capital Improvement Policies ............................................................................................................................................. 12
3.5. Reserve Fund Policies ......................................................................................................................................................... 13
4. ACCOUNTING & REPORTING POLICIES ................................................................................................................................. 16
4.1. Accounting Requirements: .................................................................................................................................................. 16
4.2. BARS – Budgeting, Accounting and Reporting System:......................................................................................................... 16
4.3. Requirements of the Finance Department: .......................................................................................................................... 16
4.4. External Auditing Requirement: .......................................................................................................................................... 16
5. GRANT COMPLIANCE……………………………………………………………………………………………………………………………………………………………17
5.1 Grant Management…..…………………………….……………………………………………………………………………………………………………………….....17
5.2 Federal Funds – Sub-Recipients and Vendors………………………………………………………………………………………………………………….…...18
6. BUDGET POLICIES ............................................................................................................................................................... 20
6.1. Primary Budget Responsibility ............................................................................................................................................ 20
6.2. Operating Budget ............................................................................................................................................................... 20
6.3. Budgetary Control .............................................................................................................................................................. 21
7. DEBT MANAGEMENT POLICIES ............................................................................................................................................ 22
7.1. Goals .................................................................................................................................................................................. 22
7.2. Short-Term Debt ................................................................................................................................................................. 22
7.3. Long-Term Debt .................................................................................................................................................................. 22
7.4. General Obligation Bond Policy ........................................................................................................................................... 22
8. INVESTMENT POLICIES ........................................................................................................................................................ 24
8.1. Introduction ....................................................................................................................................................................... 24
8.2. Governing Authority ........................................................................................................................................................... 24
8.3 Scope ................................................................................................................................................................................. 24
8.4 Objective.……………………………………………………………………………………………………………………………………………………………………..…....24
8.5 Standards of Care..………………………………………………………………………………………………………………………………………………………….…..25
8.6 Authorized Financial Institutions, Depositories, and Broker/Dealers..…………………………………………………………………………….……26
8.7 Safekeeping, Custody and Controls……………………………………………………………………………………………………………………………….…….27
8.8 Authorized Investments and Investment Parameters..……………………………………………………………………………………………….……….27
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8.9 Performance Standards..………………………………………………………………………………………………………………………………….………..……....30
8.10 Reporting Requirements..……………………………………………………………………………………………………………………………………………….…..30
8.11 Distribution of Income.....………………………………………………………………………………………………………………………………………………......30
8.12 Investment Policy Adoption.....…………………………………………………………………………………………………………………………………….……..30
9.PURCHASING POLICIES ........................................................................................................................................................ 32
9.1.Goal ................................................................................................................................................................................... 32
9.2.Interpretation of this Policy ................................................................................................................................................ 32
9.3.Financial Information Provided to Council ........................................................................................................................... 32
9.4.Purchasing Policy Definitions .............................................................................................................................................. 33
9.5.Policy Requirements ........................................................................................................................................................... 34
9.6.Requisitioned Purchase Orders (PO).................................................................................................................................... 34
9.7.Blanket Purchase Order (BPO) ............................................................................................................................................ 34
9.8.Receipt of Goods ................................................................................................................................................................ 35
9.9.FPO (Field Purchase Order) ................................................................................................................................................. 35
9.10.Invoicing ............................................................................................................................................................................. 35
9.11.Check Signing ..................................................................................................................................................................... 35
9.12.Approval of Payment Claims ............................................................................................................................................... 36
9.13.Contracts ............................................................................................................................................................................ 36
9.14.Authority to Enter into Contracts, Leases or Rental Agreements (PAMC 3.05.060) .............................................................. 36
9.15.Change orders on construction contracts and amendments to professional service agreements (PAMC 3.05.110)........... 3736
9.16.Definition of credit card (PAMC 3.05.120) ...................................................................................................................... 3836
9.17.Issuance, use and control of credit cards (PAMC 3.05.130).............................................................................................. 3836
10. POST ISSUANCE COMPLIANCE FOR GOVERNMENTAL BONDS .......................................................................................... 3938
10.1.Scope: ............................................................................................................................................................................ 3938
10.2.Purpose: ......................................................................................................................................................................... 3938
10.3.Schedule of Review:........................................................................................................................................................ 3938
10.4.Requirements at Bond Closing: ....................................................................................................................................... 3938
10.5.Requirements after Bond Closing: ................................................................................................................................... 3938
10.6.Officials or Employees Responsible for Review: ............................................................................................................... 3938
10.7.Investment of Bond Proceeds: ........................................................................................................................................ 4140
10.8.Use of Bond-Financed Facilities: ...................................................................................................................................... 4342
10.9.Continuing Disclosure: .................................................................................................................................................... 4342
10.10.Material event notices: ................................................................................................................................................... 4443
10.11.Compliance with Bond Covenants: .................................................................................................................................. 4544
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1.FINANCIAL POLICIES
1.1. Goals & Objectives:
1.1.1. The Financial Policies assemble all of the City’s key financial policies in one document. This
comprehensive document provides the guidelines to ensure that the City is financially able
to meet its immediate and long-term service objectives. The individual policies contained
herein serve as guidelines for both the financial planning and internal financial management
of the City.
1.2. Fiduciary Responsibility:
1.2.1. The City of Port Angeles is accountable to its citizens for the use of public funds. Municipal
resources must be used prudently to ensure adequate funding for the services, public
facilities, and infrastructure to meet the present and future needs of the community. These
policies safeguard the fiscal stability required to achieve the City’s goals and objectives.
1.3. Annual Review and Recommendations for Changes to Financial Policies:
1.3.1. The Chief Financial Officer shall, on an annual basis, prepare and deliver a report to the City
Council and City Manager detailing the results of the review of the City of Port Angeles
Financial Policies. In the report, the Chief Financial Officer shall make recommendations for
revisions to existing policies, addition of new policies or the deletion of existing policies to
accommodate any changes in generally accepted accounting principles (GAAP), changes in
state regulations and laws or changes in federal regulations and laws.
1.3.2. Should a change be required in the City’s Financial Policies as a result of a court decision or
changes in state or federal laws before the City Council can review a nd take any action, the
City Manager, upon recommendation by the Chief Financial Officer, is empowered to make
any revisions to existing policies, creation of new policies or deletion of existing policies to
allow the City of Port Angeles to be in compliance with governing authorities.
1.3.2.1. Provided that when the City Manager makes such change, the Chief Financial
Officer shall immediately inform the City Council in writing of the change, the
reason necessitating the change and the anticipated date the proposed revision
will come before Council for their consideration.
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2.LONG-RANGE FINANCIAL POLICIES
2.1. Resolution of Conflict between Policies:
2.1.1. If there is any conflict between the Long-Range Financial Policies and an individual financial
policy contained elsewhere in this document, the Long-Range Financial Policy shall govern.
In such case, the Chief Financial Officer shall notify the City Council and the City Manager in
writing of the conflict together with recommendations that will correct any conflict going
forward.
2.2. Ability to Pay:
2.2.1. Council shall consider the overall impact on the community and its “ability to pay” against
the need to enact any tax, utility rate or fee/charge increase.
2.3. Use of Reserves:
2.3.1. Council shall not use reserves/fund balance as a funding source for on-going operations
except on an emergency, short-term basis.
2.3.1.1. The use of rate stabilization reserves to provide for a “phase-in” of a larger utility
rate increase shall be permitted provided that Council has adopted a scheduled
plan for the utility rate increases as well as a plan to replenish the rate
stabilization reserve account for funds previously advanced.
2.4. Unassigned Fund Balance:
2.4.1. Council shall direct that General Fund unassigned fund balance (“reserves”) be increased
from its current minimum level of 10% of the current year General Fund expenditures to
25% of the current year General Fund expenditures.
2.4.1.1. To meet the additional funding requirement, Council shall consider the following
actions in rank priority:
2.4.1.1.1. Allocation of any savings generated from prior year operations in the
General Fund;
2.4.1.1.2. Allocation of additional utility excise tax revenues as a result of
Council-adopted utility rate increases;
2.4.1.1.3. Allocation of new revenues to the General Fund resulting from
levying the 1.0% increase in property tax as allowed by state law;
2.4.1.1.4. Allocation of any new sales tax revenue projected in the subsequent
year operating budget for the General Fund; and
2.4.1.1.5. Reduction in overall spending in the General Fund necessary to
generate the resources to be allocated to the General Fund
unassigned fund balance as authorized by Council.
2.4.2. Council recognizes that the actions required to achieve a 25% unassigned fund balance in
the General Fund may take an extended period to achieve. Therefore, the Council shall
target a five-year horizon to achieve the desired funding level and Council shall review the
target funding level on an annual basis as part of its deliberations for the next year’s
operating budget.
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2.5. General Fund Subsidy to Street Fund and Medic I Utility Fund:
2.5.1. Council shall consider implementing a “phase-out” of General Fund subsidy for the Street
Fund (Fund #102) and the Medic 1 Utility Fund (Fund #409).
2.5.2. The phase-out shall be over a period of not less than three (3) years nor more than five (5)
years.
2.5.3. Consideration of replacing funding currently provided by the General Fund for the Street
Fund shall include the option of the creation and implementation of a Transportation
Benefit District (TBD).
2.5.4. Prior to consideration of either a Council-approved TBD or placement on the ballot for
voter-approval, the Chief Financial Officer together with the Director of Public Works and
Utilities shall prepare a report for consideration by the City Council and City Manager that:
2.5.4.1. Analyzes the proposed method of funding for the TBD, provide an estimate of
the revenue for the next six (6) years to be generated if the TBD is approved, and
provide a specific list of projects to be funded along with a timeline for
completion of the identified projects.
2.5.5. Replacement funding for the Medic I Utility subsidy currently provided by General Fund for
the Medic I Utility Fund shall be coordinated with an upward adjustment to applicable
Medic I utility rates as provided in a Cost of Service Analysis (COSA). The COSA shall also
include a time-line for the utility rate increases intended to replace funding support from
the General Fund.
2.6. Issuance of New Debt and Ability to Pay:
2.6.1. Council shall consider, prior to the issuance of any new general government or utility debt,
the overall impact of the City’s ability to repay the debt obligation from existing taxes or
utility rates.
2.6.2. If new taxes and/or increases in utility rates are necessary to generate revenue for the new
debt service, the Chief Financial Officer shall provide the City Council and the City Manager
a report detailing the annual and total estimated costs of the debt repayment and the plan
or schedule for future tax and/or utility rate increases required to pay for the new debt.
2.7. Considerations for Debt Financing:
2.7.1. Council shall require the following for consideration of debt financing for projects:
2.7.1.1. If long-term debt financing is proposed, a financial analysis shall be required
prior to any approval of the project that analyzes the long-term sustainability of
funding from City resources, as well as the overall impact to the City’s total debt
obligation.
2.7.1.2. Any maintenance and operation (M&O) costs associated with the completed
project must be identified along with the proposed source of funding for the
M&O costs prior to seeking Council approval of the capital project.
2.8. Disposition of Unused Property:
2.8.1. Council shall consider selling of the Niichel property and other unused City properties to
allow the City to have the resources to meet the debt service obligations of the 2005
Limited Term General Obligation Bond and its $1,000,000 balloon payment in 2021.
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2.9. Use of Highly Volatile Funding Sources:
2.9.1. Council shall prohibit the use of highly volatile funding sources such as Lodging Tax (“hotel-
motel tax”), Real Estate Excise Tax I (REET-I), or Real Estate Excise Tax II (REET-II) for debt
service or other long-term commitments. Preference for use of such volatile funding
sources should be given to one-time capital expense, short-term funding commitments for
a capital expense or saving to create a funding pool that can “cash-out” a capital project.
2.10. Consideration for Smaller Scale Public Works Projects:
2.10.1. Council shall require that the Department of Public Works and Utilities examine its
proposed public works construction schedule to identify any opportunities to encourage
local contractors to bid on projects that are in line with their company’s economic
resources and/or bonding capabilities.
2.11. Capital Funding Priorities:
2.11.1. Council shall require that first priority for funding of capital projects should be given to
those projects designed to preserve and maintain existing infrastructure.
2.11.1.1. Council has established the following rank order:
2.11.1.1.1. Legal and statutory requirements and mandates provided realistic
and affordable sources of funding are available to the City.
2.11.1.1.2. Continuation of multi-year projects provided realistic and affordable
sources of funding are available to the City.
2.11.1.1.3. Capital funding shall be given to those projects that leverage City
funding with grants from the State and/or federal agencies.
2.11.1.1.4. Capital funding shall be given to public-private partnership projects,
whereby the City can leverage its contribution with private dollars to
enable a more economically diverse project where the primary risk
for the long-term financing is transferred to a private partner.
2.12. Use of One-time Revenues:
2.12.1. Council shall require that one-time revenues or revenues significantly above the budgeted
revenue target be used for one-time expenses and not be utilized to fund recurring
expenses such as salaries and wages or debt service.
2.13. Property Tax and Future Budgets:
2.13.1. Council shall require that in the development of all preliminary annual operating budgets,
the Chief Financial Officer should include a 1.0% property tax revenue increase for
consideration by Council.
2.13.2. The Chief Financial Officer shall forward to the City Council and City Manager prior to any
approval from Council for the 1.0% property tax increase a report that details the estimated
revenue that may be generated if the 1.0% increase would be approved by Council. In
addition, the report shall also include an analysis of the potential long-term impact on the
General Fund if Council decided not to levy the 1.0% increase.
2.14. Use of Banked Property Tax Capacity:
2.14.1. Council shall not consider levying of any “banked” property tax levy capacity unless the
following conditions exist:
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2.14.1.1. The Council is considering adopting an annual budget that requires a reduction
in core services as identified by Council; and
2.14.1.2. Council has voted to authorize the implementation of the 1.0% in property tax
collections.
2.15. Utility Excise Tax Rates:
2.15.1. Council shall not consider any increase to the City’s utility excise tax rates through at least
the end of the 2019 fiscal year.
2.15.2. Prior to any proposal to Council for an increase in a utility excise tax rate, the Chief Financial
Officer shall prepare a report for the City Council and the City Manager, noting the amount
of the proposed tax increase, an estimate of new or additional annual revenues for the next
six (6), years and the need for the additional funding to be derived from the increased utility
excise tax rate.
2.16. Setting of Fees and Charges for Building Permits:
2.16.1. Council shall consider that the fees and charges for building permits shall include a total
cost recovery of direct and indirect costs.
2.16.2. Council may consider a potential reduction in the fees and charges for a building permit;
only if a project creates long-term family wage jobs and/or an identifiable long-term
revenue increase in sales tax as a result of the project’s construction.
2.16.3. The Chief Financial Officer, together with the Director of Community and Economic
Development, shall prepare a report to the City Council and City Manager every three (3)
years and prior to consideration of the next annual operating budget that compares the
City’s building permit fee and charges in comparison to fees and charges from other
comparable cities, together with an analysis of the net subsidy required of the General Fund
to off-set any shortfall in revenues associated with the total building permit operating costs.
2.17. Setting of Fees and Charges for Parks and Recreation Programs and Services:
2.17.1. Council shall require that fees and charges imposed for parks and recreation shall be based
on a cost recovery hierarchy.
2.17.2. The cost recovery hierarchy shall give consideration for potential subsidy from other parks
and recreation fees and/or the General Fund for programs based on targeted audiences
such as children and youth, special populations or broad-based community programs.
2.18. Utility Rate Design:
2.18.1. Council shall require that utility rates be designed to reflect the underlying nature of the
costs for each respective utility.
2.18.2. Council may consider establishing differential utility rates for specified utility classes to
achieve specific, identifiable goals such as reduced rates to encourage recycling of used
tires or construction materials.
2.19. Economic Development Fund:
2.19.1. Council shall consider creation and/or identification of a long-term, dedicated funding
source for the Economic Development Fund (Fund #103) which allows for funding of a
reserve fund for the collection of resources that could be used as a grant match and/or
source of local government direct project funding.
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2.20. Implementation of Utility Rate Increases:
2.20.1. Council shall give preference to more frequent, but smaller, incremental increases to rates,
fees, and charges rather than less frequent but larger increases.
2.20.2. In all cost of service analysis (COSA) efforts, preference shall be given to utilizing a “phased-
in” approach for all future rate increases, even if it may be necessary to slow-down or delay
planned capital project implementation as part of an overall “ability to pay” analysis within
the COSA.
2.21. Annexation and Cost of Service Analysis:
2.21.1. Council shall require a Cost of Service Analysis (COSA) prior to any consideration of a
potential annexation. Included in the COSA will be an estimation of costs associated with
providing the current level of City services to an area under consideration for annexation as
well as an estimate of all revenue that may be derived from the area included in the
proposed annexation.
2.22. Employee Salaries and Benefits:
2.22.1. Council shall require a salary and benefit survey to assess the comparability of salaries,
wages, and benefits paid by the City of Port Angeles in comparison to the market place for
prospective City employees. Included in that analysis shall be the following:
2.22.1.1. The survey shall be done no more often than every three (3) years nor less often
than every five (5) years.
2.22.1.2. The survey shall take into account internal comparability for responsibility and
critical importance to the City for short and long-term decision-making.
2.22.1.3. The survey shall take into account external factors including comparable cities,
private-sector jobs, and other factors that influence the City’s ability to recruit
and retain qualified employees.
2.22.1.4. The Chief Financial Officer shall prepare and deliver a report in writing to the
City Council and City Manager prior to any consideration of a change in salary,
wages, or benefit levels for unionized and/or non-represented employees that
details the estimated costs of any proposals that are under consideration for
approval by Council.
2.22.1.5. The Mayor, with approval of the Council, may appoint a special, ad hoc Council
Committee to work with the City Manager in the development of any proposals
regarding salaries, wages, and benefits for employees of the City.
2.23. Employee Contributions for Health Insurance:
2.23.1. Council shall require that all employees contribute to the cost of their health insurance
coverage for both the employee as well as any family coverage that may be required.
2.23.2. Council recognizes that implementation of this policy statement may require amendments
to collective bargaining agreements covering various groups of City employees and will
need to be negotiated as part of a collective bargaining process.
2.24. Payments by the City to Vendors and Employees:
2.24.1. Council shall require that all payments made by the City be accomplished via electronic
funds transfer wherever possible, as a means of reducing costs to the City.
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3. OPERATING POLICIES
3.1. Goals
3.1.1. To ensure delivery of an exceptional level of municipal services by assuring reliance on
ongoing resources and by maintaining a stable financial base.
3.1.2. To ensure that the City is in a position to respond to changes in the economy or new service
requirements without an undue amount of financial stress.
3.1.3. To maintain an excellent credit rating in the financial community and assure taxpayers that
the City is well managed financially and maintained in sound fiscal condition.
3.1.4. To adhere to the highest accounting and management policies as set by the Government
Finance Officers’ Association (GFOA), the Governmental Accounting Standards Board
(GASB), and other professional standards for financial reporting and budgeting.
3.1.5. To ensure the legal use of financial resources through an effective system of internal
controls.
3.2. Revenue Policies
3.2.1. The City will strive to maintain a diversified mix of revenues in order to maintain needed
services during periods of declining economic activity.
3.2.2. General Fund revenue estimates should be prepared on a conservative basis in order to
minimize fluctuations in service levels during periods of economic downturn.
3.2.3. As much as is reasonably possible, City services that provide private benefit sh all be
supported by fees and charges in order to provide maximum flexibility in the use of general
revenues to meet the cost of services of broader public benefit. The City shall establish user
charges as follows:
3.2.3.1. Building Permits: Fees shall be based on total cost recovery of direct and
indirect expenses.
3.2.3.2. Parks & Recreation: Fees shall be based on a cost recovery hierarchy whereby
adult programs help to subsidize programs for children, youth, and special
populations.
3.2.3.3. Rental of City Facilities: Fees shall be based on 100% of total direct and indirect
costs, plus an amount to be reserved for future major maintenance of assets
utilized by the rental if the rental is for private business purposes. As a general
requirement, the rental fees shall, at a minimum, cover the direct expenses
associated with permitting and facilitating the rental unless the event is
sponsored by the City of Port Angeles.
3.2.3.4. In the event that fees and charges do not achieve their targeted cost recovery
benchmarks, the City Manager shall recommend a plan for consideration by
Council that either reduces programs and services to be offered or provides for a
one-time subsidy from the General Fund for the current fiscal year’s operation.
3.2.3.5. Consideration of any future subsidy from the General Fund shall be included in
discussions by Council prior to the adoption of the next fiscal year’s budget.
3.2.4. The City shall systematically review user fees and rates and consider adjustments as
necessary to take into account the effects of additional service costs and inflation. Rate
studies shall take into account direct and indirect costs of operations, administration, plant
maintenance, debt service, depreciation of capital assets, and other related costs .
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3.2.5. Proceeds of specific revenue sources that are legally restricted to expenditures for specified
purposes will be accounted for in separate special revenue funds, unless the Chief Financial
Officer issues a finding that directs the revenue to be accounted for in a different fund for a
specific reason. Budgeted special revenue funds will be included and reviewed in the City’s
annual budget process.
3.2.6. The City will follow an aggressive policy of collecting all monies due, to the extent that the
collection efforts are cost effective.
3.2.6.1. The City may elect to not collect minor amounts due the City if the costs of
collection equal or exceed the amount of money to be collected. The Chief
Financial Officer shall determine on an annual basis what constitutes a minor
amount referenced above and shall inform the Council and City Manager as to
the determination of what constitutes a minor amount.
3.2.7. Economic downturns and anticipated funding shortfalls will be analyzed by the Chief
Financial Officer and City Manager for potential solutions. Deficit financing and borrowing
to support on-going expenditures is not the policy of the City as a response to long-term
revenue shortfalls. Revenue forecasts will be revised and expenditures will be reduced to
conform to the revised forecast.
3.2.8. All potential grants shall be carefully examined for matching requirements and other City
obligations prior to grant acceptance. Some grants may not be accepted if local matching
funds cannot be justified. Grants may also be rejected if programs must be continued with
local resources after grant funds are exhausted or if they place an unacceptable strain on
local resources.
3.2.9. Significant preference shall be given to rate and fee increases that are smaller and applied
more frequently than intermittent but significantly larger rate increases.
3.3. Expenditure Policies
3.3.1. The City will only propose operating expenditures that can be supported from on-going
operating revenues. Before the City undertakes any agreements that would create fixed
on-going expenses, the cost implications of such agreement will be fully determined for
current and future years. Capital expenditures may be funded from one-time revenues, but
the operating budget expenditure impacts of capital purchases will be reviewed for
compliance with this policy provision.
3.3.2. Department directors are responsible for managing their budgets within the total
appropriation for their department.
3.3.3. The City will assess charges for services provided internally by other funds . The estimated
direct and indirect costs of service will be budgeted and charged to the fund receiv ing the
service. Interfund service fees charged to recover these costs will be recognized as revenue
to the providing fund. The allocation method will be reviewed annually.
3.3.4. Emphasis is placed on improving individual and work group productivity rather tha n adding
to the work force. The City will invest in technology and other efficiency tools to maximize
productivity. The City will hire additional staff only after the need of such positions has
been demonstrated and documented.
3.3.5. All compensation planning and collective bargaining will focus on the total costs of
compensation, including direct salary, healthcare benefits, pension contributions,
educational and longevity pay, and other non-salary benefits which are a cost to the City.
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3.4. Capital Improvement Policies
3.4.1. It is the City’s policy to ensure that adequate resources are allocated to preserve existing
infrastructure and other capital assets before targeting resources toward construction or
acquisition of public facilities or major equipment.
3.4.2. The City will develop a multi-year Capital Facilities Plan (CFP) to identify and coordinate
infrastructure, facility, and equipment needs in a way that maximizes the return to the
community. All capital improvements will be made according to the adopted CFP.
3.4.3. The Capital Facilities Plan will be formulated using an analysis of long-term, overall
resources and will include projected funding sources and ongoing operations and
maintenance costs. Future changes in economic or demographic factors identified in the
financial forecasting process will be incorporated in the capital budget projections. The
plan will be updated annually. Any planned use of debt financing shall include an analysis
of debt service costs and funding resources available to pay the associated debt.
3.4.4. The first year of the Capital Facilities Plan will constitute the capital budget for the ensuing
budget year. The capital budget and the base operating budget will be reviewed at the
same time to assure that the City’s capital and operating needs are evaluated in a balanced
manner.
3.4.5. A long-range Transportation Improvement Plan (TIP) will provide the framework for the
City’s future investment in transportation related infrastructure. This ensures that
infrastructure projects incorporated into the Capital Facilities Plan (CFP) will be the
embodiment of the officially stated direction of the City’s Comprehensive Plan and
supporting documents.
3.4.6. The City may administer a Local Improvement District (LID) program. For capital projects
whose financing depends in part or wholly on an LID, interim financing may be issued to
support the LID’s portion of the project budget. The amount of the interim financing shall
be the current estimate of the final assessment roll as determined by the administering
department.
3.4.7. The City will determine the most cost effective financing method for all new projects.
Whenever possible, the City will use intergovernmental assistance and other outside
resources to fund capital projects. Additional funding may come from designated surpluses
in the General Fund and certain special revenue funds as outlined in the operating budget
policy.
3.4.8. An operating cost projection, including all funding sources, will be required for all projects
proposed for funding within six (6) years.
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3.5. Reserve Fund Policies
3.5.1. Part of financial stability is to maintain adequate reserves and fund balances. The definition
of Fund Balance is the net worth of a fund, measured by total assets minus total liabilities.
3.5.2. In the governmental funds, the City recognizes the following hierarchy of fund balance
classifications, which are based primarily on the extent to which the City is bound by
constraints placed on resources:
3.5.2.1. Nonspendable -- Amounts that cannot be spent due to form (such as
inventories and pre-paid amounts), and amounts that must be maintained intact
legally or contractually (including the corpus or principal of a permanent fund).
In addition, long-term loan and notes receivables, and property held for resale
would be reported here unless the proceeds are restricted, committed, or
assigned.
3.5.2.2. Restricted -- Amounts constrained for a specific purpose by external parties,
constitutional provision, or enabling legislation.
3.5.2.3. Committed -- Amounts constrained for a specific purpose as authorized by th e
City Council. Additional action by the Council is required in order to remove or
change the constraints placed on the resources. The action to constrain
resources must occur prior to year-end; however, the amount can be
determined in the subsequent period.
3.5.2.4. Assigned -- For all governmental funds other than the general fund, any
remaining positive amounts not classified as nonspendable, restricted, or
committed. For the general fund, the City Manager has been delegated
authority to assign amounts intended to be used for a specific purpose. All
assigned fund balance requests from departments must be approved in writing
by the City Manager and provided to the Finance Department by year -end in
order to be officially considered assigned. Amounts reported as assigned should
not result in a deficit in unassigned fund balance.
3.5.2.5. Unassigned -- For the general fund, amounts not classified as nonspendable,
restricted, committed, or assigned and are available to use for any purpose. The
general fund is the only fund that would report a positive amount in unassigned
fund balance. For all other governmental funds, unassigned fund balance is the
amount expended in excess of resources that are nonspendable, restricted,
committed, or assigned. If this results in a deficit in unassigned fund balance,
then assigned fund balance shall be reduced.
3.5.3. Special Revenue Funds will maintain sufficient fund balances to provide adequate cash flow
and to withstand downturns in the economy. These fund balances will be analyzed
annually.
3.5.4. The General Fund’s targeted unassigned fund balance will be a minimum of 25% of
expenditures, excluding capital expenditures. This fund balance will be established and
maintained to:
3.5.4.1. Offset unanticipated economic downturns;
3.5.4.2. Provide a sufficient cash flow for daily financial needs at all times;
3.5.4.3. Establish an adequate level of reserves to provide for the timely replacement of
equipment; and
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3.5.4.4. Sustain City services in the event of a catastrophic event such as a
natural/manmade disaster or a major downturn in the economy.
3.5.4.5. If unassigned fund balance falls below the required minimum level, the City
Manager shall notify the Council immediately. The Council must adopt a plan to
restore this balance to the target level within 60 months.
3.5.5. In addition, the general fund will maintain a committed fund balance to be used as a
contingency as specified in PAMC 3.04.040. There are no minimum requirements on the
level of contingency fund balance.
3.5.6. There are no specific requirements on the level of assigned fund balance in the general
fund, unless future revenue streams are specified by the donor or source of funding.
3.5.7. The City will maintain the following reserves for the proprietary funds identified below:
3.5.7.1. An operating reserve will be established and maintained to provide sufficient
cash flow to meet daily financial needs as recommended by the City’s financial
advisor. The reserve requirements will be reviewed every three years and will
be based upon:
3.5.7.2. 60 days operating expenses: Electric, Water, and Wastewater Funds.
3.5.7.3. 90 days operating expenses: Solid Waste and Stormwater Funds.
3.5.7.4. Operating expenses exclude ending fund balances, capital purchases,
construction costs, debt service payments, and transfers.
3.5.7.4.1. A rate stabilization reserve will be established and maintained for the
Electric Fund to provide a means to mitigate wholesale power
purchase cost increases. A rate stabilization reserve will be
established and maintained for the Wastewater Fund to provide a
means to mitigate retail rate increases based on unforeseen cost
increases. These accounts will be analyzed annually to ensure an
adequate amount is placed in reserves.
3.5.7.4.2. A post-closure maintenance reserve within the Solid Waste fund will
be established and maintained to provide sufficient cash flow to meet
the anticipated cost of maintenance in accordance with State law.
This reserve requirement will be reviewed annually.
3.5.7.4.3. Bond reserves will be created and maintained as required in utility
funds in accordance with the provisions set forth in the bond
covenants.
3.5.7.4.4. A contingencies and replacement reserve for the Electric fund will be
established and maintained in accordance with bond covenants.
3.5.7.4.5. The City will maintain reserve funds to meet requirements for the
guarantee of debt service in compliance with bond indenture
agreements.
3.5.7.4.6. The City will maintain the self-insurance funds at a sufficient level to
provide health care and workers’ compensation benefits and avoid
catastrophic loss.
3.5.7.4.7. The City will maintain equipment replacement reserves as specified in
the City’s Equipment Replacement and Vehicle Use Policy.
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3.5.7.4.8. The City will maintain adequate reserves in the Information
Technology Fund to ensure timely replacement, upgrade, and/or
additions to the City’s technology infrastructure.
3.5.8. The City will maintain a Firemen’s Pension Fund. Any amounts placed in this fund will be
used solely for the payment of Firemen’s Pension Fund liabilities as determined by the
agreement between the Firemen’s Pension Fund members, and/or spouses and the City.
Once the fund has been exhausted the General fund will be responsible for any ongoing
liabilities, which will be paid in a timely manner.
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4. ACCOUNTING & REPORTING POLICIES
4.1. Accounting Requirements:
4.1.1. The City’s accounting and financial reporting systems will be maintained in conformance
with current accepted principles and standards of the Governmental Accounting Standards
Board (GASB), Generally Accepted Accounting Principles (GAAP), and the Government
Finance Officers Association (GFOA). As a commitment to this policy, the Finance
Department will periodically submit its Comprehensive Annual Financial Report (CAFR) for
the GFOA Certificate of Achievement for Excellence in Financial Reporting.
4.2. BARS – Budgeting, Accounting and Reporting System:
4.2.1. The State Auditor’s Office provides a standard account classification system through its
Budgeting, Accounting and Reporting System (BARS). The City will maintain its records on a
basis consistent with BARS and current BARS manuals will be maintained in the Finance
Department.
4.3. Requirements of the Finance Department:
4.3.1. The Finance Department will maintain financial systems to monitor expenditures, revenue,
and performance of all municipal programs on an ongoing basis. Regular monthly financial
reports will present a summary of financial activity for the period and the cumulative data
for the budget year.
4.3.2. All applicable standard governmental accounting practices will be used to maintain the
City’s financial records, including the appropriate uses of accrual and modified accrual
methods of accounting, encumbrance accounting, current financial resources and economic
resources focus for statement presentation, and the proper classification of fun ds.
4.3.3. The Finance Department will maintain fixed asset and depreciation records for all capital
assets owned by the City. The threshold for capitalization of non -infrastructure assets is
$7,500.
4.3.4. Under GASB Statement No. 34, infrastructure will be included a s capital assets in the
financial reports. The City will develop and follow a methodology of maintaining
infrastructure records, including appropriate depreciation, under the guidelines of the
statement.
4.4. External Auditing Requirement:
4.4.1. The State Auditor’s Office will annually perform a financial and compliance audit and issue
an audit report. Results of the annual audit will be provided to the City Council and public.
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5. GRANT COMPLIANCE
5.1 Grant Management:
5.1.1 Each department of the City manages their own grants and assigns a Grant Manager (grant
official), subject to City Manager, or the City Managers’ designee, approval. The Grant
Manager is responsible for performing a financial analysis to review whether the grant is
cost effective, with approval by the Department Director to go forward with the request.
5.1.2 The Grant Manager forwards the signed grant agreement to the Finance Department for
inclusion in the Budget and also the Capital Facilities Plan if the grant is funding a capital
project. Finance staff are responsible for setting up a work order with a separate job order
for each grant task listed. If the grant is funding a capital project, Finance will provide the
project and work order numbers in existence for that capital project. Operating and capital
grant work orders are set up in relation to the reporting requirements of the grant, typically
listed as tasks.
5.1.3 Grant spending is contingent on meeting a fair bidding process, providing full and open
competition consistent with the standards of purchasing set forth in this Financial Policy,
and State and Federal regulations. As defined by OMB Guidance § 200.318 General
procurement standards.
5.1.3.1 The City cannot place unreasonable requirement on firms in order for them to
qualify to do business;
5.1.3.2 The City cannot require unnecessary experience or excessive bonding;
5.1.3.3 The City cannot consider noncompetitive pricing practices between firms or
affiliated companies;
5.1.3.4 The City cannot consider noncompetitive contracts to consultants that are on
retainer contracts;
5.1.3.5 The City cannot specify only “name brand” products, thus eliminating “a n equal”
product to be offered; or describe the product or performance or other relevant
requirements of the procurement such to exclude those products;
5.1.3.6 The City cannot require procurement in a manner that prohibits the use of
products or statutorily or administratively imposes a state or local geographical
preference in the evaluation of bids, except in the case where the grant or
Federal statutes mandate or encourage such an action.
5.1.4 The Grant Manager is responsible for maintaining the official, permanent grant file of
record, and ensures that all requirements of the grant agreement, State laws, State archives
record retention, City policies, and the Federal Super Circular are followed, as applicable.
Grant funds used for capital require keeping all records for at least 10 years before
transferring to the State archives for appraisal value, with most having a much longer
retention period due to the length of the asset life. The City Clerk can assist in determining
the record retention requirements.
5.1.5 The Grant Manager submits payment requests on a timely basis and sends a copy to the
Finance Department. The Finance Department ensures that grant funds are requested and
received on a timely basis and are spent on the intended program or project and have
proper documentation.
5.1.6 The Grant Manager is responsible for meeting bid requirements and checking for
debarment on all project vendors prior to signing a contract with those vendors. The
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debarment check includes keeping a written record on file of the page researched online,
noting the date checked and initialing the information. This written record should remain in
the project file for access by the State auditors. If the grant covers multiple years, the
debarment checks need to be completed annually. Please refer to Section 9 Purchasing
Policies.
5.1.7 The Finance Department is responsible for the preparation of the Schedules of Expenditures
of Federal and State Awards as part of the annual Financial Statements.
5.1.8 Failure of City staff to comply with grant requirements may adversely affect the City and as
such disciplinary action may be taken per the City of Port Angeles Personnel Policy &
Procedures Manual, and/or the Employee Union Contract.
5.1.9 Grant Managers and all employees shall be responsible to maintain arms-length
transactions (non-related or not in self-interest) transactions when accepting bids and
making payment or using grant related monies.
5.1.9.1 Disciplinary action for non-compliance of this sections shall include up to
termination as defined by each employees’ Union contract or the City of Port
Angeles Personnel Policy & Procedures Manual.
5.1.9.1.1 Employees are any person receiving a check from the City for work
completed where the City withholds employment taxes.
5.1.9.2 Conflicts of interest or financial interest by an employee shall fall into this
section.
5.1.10 Council accepts and authorizes all grants with the exception of those grants assigned to City
employees by the City Council , and those grants under $25,000.
5.2 Federal Funds – Sub-Recipients and Vendors
5.2.1 Sub-recipients and Vendors – The City Official in the department responsible for the
contract is responsible to ensure that awards and/or payments are not made to any party
who is debarred or suspended or otherwise excluded from or ineligible for participation in
federal assistance programs. Prior to signing a contract with a sub-recipient or vendor the
City Official responsible for administration of the contract is responsible to ensure that s ub-
recipient or vendors are eligible to receive federal funds.
5.2.2 Contract Requirements for sub-recipient – When the City contracts with a sub-recipient
who distributes federal funds, the sub-recipient is subject to the Single Audit Act. Contracts
with sub-recipient will include the language addressing the following:
5.2.2.1 The secondary recipient of the federal funds should be referred to in the
contract as a "sub-recipient" once it is determined that they are a sub-recipient,
not a vendor.
5.2.2.2 Single Audit requirements should be defined for sub-recipient as follows:
5.2.2.2.1 The sub-recipient must comply with the Single Audit Act of 1984 as
amended.
5.2.2.2.2 The sub-recipient must permit the City and/or independent auditors
access to their financial records.
5.2.2.2.3 The sub-recipient maintain accounting records that will enable
identification of all federal funds received and expended by catalog of
federal domestic assistance number (CFDA#).
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5.2.2.2.4 If a Single Audit is required, a copy of the audit report is submitted to
the City, within the time limit set forth in the Single Audit Act.
5.2.2.2.5 If a Single Audit is not required, the City is allowed to perform a fiscal
review of the sub-recipient’s financial records.
5.2.2.2.6 If a sub-recipient is debarred or suspended from participation in
federal programs during the contract period, the contract is voided.
5.2.2.2.7 The sub-recipient check the “List of Parties Excluded from Federal
Procurement and Non-procurement Programs,” prior to awarding
sub-grants.
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6. BUDGET POLICIES
6.1. Primary Budget Responsibility
6.1.1. The City Manager is responsible for preparing and submitting to the Council a tentative
budget for the fiscal year. The City Manager is also responsible for keeping the Council fully
advised of the financial condition of the City and its future needs.
6.1.2. The City Council has final responsibility for approving the annual Operating Budget and
Capital Budget.
6.1.3. Department directors, under the direction of the City Manager, are responsible for
proposing programs, recommending funding levels, and formulating budget proposals for
implementing service programs in accordance with established goals and directives.
6.1.4. The Finance Department is responsible for coordinating the overall preparation and
administration of the City’s budget in compliance with applicable State of Washington
statutes governing local government budgeting practices.
6.1.5. The Finance Department provides revenue budget estimates, assists depart ment staff in
identifying budget problems and formulating alternative solutions, and prepares and
distributes the final budget document.
6.1.6. To facilitate and implement the budget process, the Chief Financial Officer will provide the
Council with an annual budget calendar in accordance with State law.
6.2. Operating Budget
6.2.1. The operating budget will define the City’s annual financial plan as developed by the City
Council in establishing goals and objectives for the ensuing year.
6.2.2. Ongoing revenues should be equal to or greater than ongoing expenditures. Each City fund
budget shall identify ongoing resources that at least match expected ongoing annual
requirements. One-time cash transfers and non-recurring ending fund balances will be
applied to reserves or to fund one-time expenditures; they will not be used to fund ongoing
programs.
6.2.3. In accordance with State law, the City Manager is authorized to transfer budgeted amounts
within any fund; however, any revisions that alter the total expenditure authority
(appropriation) of a fund must be approved by the City Council.
6.2.4. Additional staff positions should be recommended only after the need has been fully
substantiated. An increase in the number of full -time equivalent position must be approved
by the City Council. The City Manager has the authority to approve additions and/or
changes to temporary, seasonal, and part-time positions. Nothing in this paragraph is
intended to diminish or interfere with the City Manager’s right to control the appointment
and removal of City employees.
6.2.4.1. Only the City Council can authorize an increase in the authorized City career
staffing complement. Such approval is accomplished through the adoption of
the annual operating budget or through subsequent budget amendments
approved by the City Council.
6.2.5. The City will maintain a level of expenditures, which will provide for the public well -being
and safety of the residents of the community.
6.2.6. The operating budget will provide for appropriate design, construction, maintenance and
replacement of the City’s capital infrastructure, plant, and equipment.
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6.2.7. A multi-year vehicle and equipment maintenance and replacement schedule will be
developed based on the City’s projections of its future replacement and maintenance
needs. The projections will be updated and the schedule revised on an annual basis.
6.2.8. The budget will provide sufficient levels of maintenance and replacement funding to ensure
that all capital facilities and equipment are properly maintained and that such future costs
will be minimized.
6.2.9. The following criteria must be met to qualify any portion of the year-end General Fund
surplus for one-time operations, nonrecurring emergency capital expenditures, or
dedicated to the Capital Facilities Plan:
6.2.9.1. There are surplus balances remaining after all reserve requirements and current
expenditure obligations are met.
6.2.9.2. An analysis has occurred assuring that the City has an adequate level of short
and long-term resources to support the proposed use of surplus balances.
6.2.9.3. The funds are specifically appropriated by the City Council.
6.2.10. Year-end surplus in the Street Fund shall be designated for use in the Capital Facilities Plan
or be used for one-time capital expenditures for street and parks projects. Use of surplus
for these purposes must be approved by the Council.
6.3. Budgetary Control
6.3.1. The budget will be developed and administered in compliance with applicable State of
Washington budgetary statutes.
6.3.2. The Finance Department will maintain a system for monitoring the City’s budget
performance. The system will include provisions for amending the budget during the year
in order to address unanticipated needs or emergencies.
6.3.3. Appropriations requested after the original budget is adopted will be approved only after
consideration of the availability of current and future revenues. Such appropriations must
be approved by City Council.
6.3.4. Accounting and reporting practices will be maintained to provide accurate and timely
monitoring of the City’s budget performance.
6.3.5. Monthly budget reports will be issued by the Finance Department to Department Heads
regarding the department’s actual performance compared to budget estimates. The
department also assists in implementing any needed corrective action approved by the City
Manager.
6.3.6. Current revenues and operating expenditures will be reviewed quarterly by the City Council,
and the Chief Financial Officer will prepare a mid-year assessment of the City’s financial
position for presentation to the Council.
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7. DEBT MANAGEMENT POLICIES
7.1. Goals
7.1.1. All borrowing is subject to approval by the City Council. The basic objectives of the City’s
debt management policy are:
7.1.1.1. To achieve the lowest possible cost for borrowing.
7.1.1.2. To ensure access to the bond market to adequately provide the capital needed
to finance public improvement and other long-term development objectives.
7.1.1.3. To maintain strong and sound credit, demonstrated by its commitment to meet
all obligations in a timely fashion.
7.1.1.4. To maintain a level and structure of outstanding indebtedness that does not lead
to excessive debt service requirements, thereby avoiding unnecessary strains on
the operating budget.
7.1.1.5. To maintain the confidence of lending markets and the taxpayers.
7.2. Short-Term Debt
7.2.1. Short-term debt covers a period of one (1) year or less. With careful monitoring and
planning of cash inflow and outflow requirements, it is intended that the City will avoid the
use of short-term indebtedness to the maximum extent possible.
7.2.2. The City may use short-term debt to cover temporary cash flow shortages resulting from
delay in receipting tax revenues or issuing long-term debt or to finance capital construction.
7.2.3. Interfund loans with a repayment period of three years or less, may be used to meet short -
term cash flow needs as an alternative to outside debt instruments. Interfund loans will be
permitted only if an analysis of the lending fund indicates excess funds are available and
that the use of these funds will not adversely affect current operations.
7.3. Long-Term Debt
7.3.1. Long-term debt is defined as debt that exceeds three years. The City will confine long-term
borrowing to capital improvements that cannot be financed from current revenues.
7.3.2. Acceptable uses of bond proceeds will include items that can be capitalized and
depreciated. Refunding bond issues designed to restructure current outstanding debt is an
acceptable use of bond proceeds, provided an analysis is done that determines the net
present value (NPV) of savings is favorable for the City.
7.3.3. Where possible, the City will use special assessment revenue, or other self-supporting
bonds, instead of general obligation bonds.
7.3.4. The City will not use long-term debt for current operations.
7.3.5. The City will maintain communications with bond rating agencies regarding its financial
condition. The City will follow a policy of full disclosure on financial reports and bond
prospectuses including proactive compliance with disclosure to the Electronic Municipal
Market Access (EMMA) according to guidelines established by the Municipal Securities
Rulemaking Board (MSRB).
7.4. General Obligation Bond Policy
7.4.1. Before general obligation bond propositions are placed before the voters, projects
proposed for financing through general obligation debt should be included in the Capital
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Facilities Program and be accompanied by an analysis of the future operating and
maintenance costs associated with the project.
7.4.2. Bonds will not be issued for a longer maturity schedule than a conservative estimate of the
useful life of the asset to be financed.
7.4.3. Limited Tax General Obligation (LTGO) Bond Policy:
7.4.3.1. As a precondition to the issuance of limited tax general obligation bonds,
alternative methods of financing should also be examined.
7.4.3.2. Limited tax general obligation bonds will be issued under certain conditions:
7.4.3.2.1. A project in progress which requires monies not available from
alternative sources;
7.4.3.2.2. Matching fund monies are available which may be lost if not applied
for in a timely manner; or
7.4.3.2.3. Catastrophic or emergency conditions exist.
7.4.3.2.4. A clearly identified need that helps achieve Council’s desired vision
for the City and is in line with the priorities approved by the City
Council.
7.4.4. Unlimited Tax General Obligation (UTGO) Bonds and Legal Debt Limits:
7.4.4.1. Under RCW 39.36.020(2), the public may vote to approve UTGO bond issues for
general government purposes in an amount not to exceed 2.5% of assessed
valuation. Within the 2.5% limit, the Port Angeles City Council may approve
LTGO bond issues and/or lease purchases up to 1.5% of the City’s total assessed
value (RCW 39.36.020(2) and RCW 35.42.200). In addition, state law provides
for an additional 2.5% of assessed valuation for parks and open space purposes
with a vote of the people.
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8. INVESTMENT POLICIES
8.1. Introduction
8.1.1. The Investment Policy defines the parameters within which funds are to be invested by the
City of Port Angeles (“City”). Part of the City’s overall Financial Policies and Procedures, this
policy formalizes the framework to provide the authority and constraints for effective and
judicious management of City funds.
8.1.2. These policies are intended to be broad enough to allow the Chief Financial Officer, City
Treasurer or designated investment officer, to function properly within the parameters of
responsibility and authority, yet specific enough to adequately safeguard the investment
assets.
8.2. Governing Authority
8.2.1. The investment authority for the City is derived from Chapter 35A.40.050 RCW. Investing
activities shall be operated in conformance with Washington Revised Statutes and
applicable Federal Law. The policy outlines investments scope, objectives, delegation of
authority, reporting requirements, internal control, investment limitations, safeguarding
requirements, liquidity, performance expectation, quality, and maturity.
8.2.2. The goal of the policy is to invest public funds in a manner which will provide the highest
investment return with the maximum security while meeting the daily cash flow demands
and conforming to all Washington statutes governing the investment of public funds.
8.3. Scope
8.3.1. This policy applies to activities of the City with regard to investing the financial assets of all
funds as defined and reported in the City’s Comprehensive Annual Financial Report (CAFR).
All funds within the scope of this policy are subject to regulations established by the state of
Washington.
8.3.2. Except for funds in certain restricted or special funds, the City commingles its funds to
maximize investment earnings and to increase efficiencies with regard to investment
pricing, safekeeping and administration. Investment income is allocated to the various
funds based on average daily cash balances.
8.4. Objective
8.4.1. All funds will be invested in a manner that is in conformance with federal, state and other
legal requirements. The primary objectives, in priority order, of the City’s investment
activities shall be as follows:
8.4.1.1. Safety: Safety of principal is the foremost objective of the City. Investments shall
be undertaken in a manner that seeks to ensure the preservation of capital in
the overall portfolio. To obtain this objective, investments will be diversified
among highly rated securities and with various securities and financial
institutions.
8.4.1.2. Liquidity: The City’s investment portfolio shall remain sufficiently liquid to
enable the City to meet all cash requirements which might be reasonably
anticipated. Therefore, the investments shall be managed to maintain a balance
to meet daily obligations.
8.4.1.3. Return on Investment (Yield): Yield should become a consideration only after
the basic requirements of safety and liquidity have been met. The City’s
investment portfolio shall be managed in a manner to attain a market rate of
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return throughout budgetary and economic cycles, taking into account the
investment risk constraints of safety and liquidity needs. The core of
investments are limited to relatively low risk securities in anticipation of earning
a fair return relative to the risk being assumed.
8.4.1.4. Legal Considerations: Investments will be placed in accordance with RCW
statutes and legal requirements of the City.
8.5. Standards of Care
8.5.1. Delegation of Authority
8.5.1.1. Governing Body: The ultimate responsibility and authority for the investment of
City funds resides with the governing body, or the City Council.
8.5.1.2. Investment Officers: Authority to manage the investment program is granted to
the City Manager, Chief Financial Officer, City Treasurer or designee as designated
by the City Council within the Investment Policy.
8.5.1.3. Responsibility for the operation of the investment program is hereby delegated to
the Chief Financial Officer, City Treasurer, or designee, who shall act in accordance
with established written procedures and internal controls for management of the
investment program consistent with this Investment Policy. Officers will prepare
investment reports to the City Council as may be deemed necessary.
8.5.1.4. Investment Adviser: The City may engage the services of an external investment
manager to assist in the management of the entity’s investment portfolio in a
manner consistent with the entity’s objectives. Such advisors shall provide
recommendation and advice regarding the City investment program including but
not limited to advice related to the purchase and sale of investments in accordance
with this Investment Policy.
8.5.2. Prudence
8.5.2.1. The standard of prudence to be used by investment officials shall be the “prudent
person” standard, which states “...investments shall be made with judgement and
care, under circumstances then prevailing, which persons of prudence, discretion
and intelligence exercise in the management of their own affairs, not for
speculation, but for investment, considering the probable safety of their capital as
well as the probable income to be derived.”
8.5.2.2. In determining whether an Investment official has exercised prudence with respect
to an investment decision, the determination shall be made taking into
consideration the investment of all funds over which the official had responsibility
rather than a consideration as to the prudence of a single investment, and,
whether the investment decision was consistent with the written investment
policy.
8.5.2.3. The Investment officer, or designee, acting in accordance with written procedures
and exercising due diligence, shall be relieved of personal responsibility for an
individual security’s credit risk or market price changes, provided that deviations
from expectations are reported in a timely fashion and appropriate action is taken
to control adverse development.
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8.5.3. Ethics and Conflicts of Interest
8.5.3.1. Officers and employees involved in the investment process shall refrain from
personal business activity that could conflict with proper execution of the
investment program, or that could impair their ability to make impartial
investment decisions. Employees and investment officials shall disclose any
material interests in financial institutions with which they conduct business.
Disclosure shall be made to the governing body. They shall further disclose any
personal financial/investment positions that could be related to performance of
the investment portfolio.
8.6. Authorized Financial Institutions, Depositories, and Broker/Dealers
8.6.1. Broker/Dealers and Financial Institutions
8.6.1.1. The City Treasurer will maintain a list of authorized financial institutions and
broker/dealers that are selected by credit worthiness. These may include dealers
that qualify under Securities and Exchange Commission Rule 15C3 -1 (uniform net
capital rule). Additions and deletions to the list will be made at the City’s
discretion.
8.6.1.2. Authorized broker/dealers and financial institutions will be limited to those that
meet one or more of the following:
8.6.1.2.1. Financial institutions approved by the Washington Public Deposit
Protection Commission; or
8.6.1.2.2. Primary dealers recognized by the Federal Reserve Bank; or
8.6.1.2.3. Non-primary dealers or institutions qualified under U.S. Securities and
Exchange Commission Rule 15c3-1, the Uniform Net Capital Rule, and a
certified member of the Financial Industry Regulatory Authority
(FINRA).
8.6.2. To maintain approved status for investment transactions with the City, broker/dealers are
required to provide a current audited financial statement demonstrating compliance with
state and federal capital adequacy guidelines. A periodic review of the financial condition
and registration of all qualified broker/dealers will be conducted by the City Treasurer.
8.6.3. The City will only place funds exceeding the current FDIC insurance limits with banks who
are currently authorized by the Washington State Public Deposit Protection Commission
(PDPC) in accordance with RCW 39.58.240. The City Treasurer or designated investment
officer will verify the eligibility of banking institutions utilizing the Washington State
Treasurer’s websites: http://www.tre.wa.gov/documents/pdpc/publicDepositoriesBanks-
Thrifts.shtml
and http://www.tre.wa.gov/documents/pdpc/publicDepositoriesCreditUnions.shtml.
8.6.4. Investment Advisers
8.6.4.1. The City may hire an investment adviser to provide investment management
services in a non-discretionary capacity, requiring approval from the City prior to
all transactions.
8.6.5. Competitive Transactions
8.6.5.1. The City Treasurer or designated investment officer shall obtain competitive bid
information on investment instruments purchased on the secondary market.
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8.7. Safekeeping, Custody and Controls
8.7.1. Delivery vs. Payment
8.7.1.1. All trades of marketable securities will be executed (cleared and settled) on a
delivery
vs. payment (DVP) basis to ensure that securities are deposited in the City’s
safekeeping institution prior to the release of funds.
8.7.2. Third Party Safekeeping
8.7.2.1. Securities will be held by an independent third-party safekeeping institution
selected by the City. The safekeeping institution shall be required to provide
confirmation of investing transactions and a monthly investment ledger to the City
listing each specific security. The investment ledger should itemize and describe
each investment to include: specific security, CUSIP number, par value, purchase
date, maturity date and market value.
8.7.2.2. All collateral securities pledged to the City for certificates of deposit shall be held in
a segregated account at the issuing financial institution that reports to the state’s
Public Deposit Protection Commission (PDPC).
8.7.3. Internal Controls
8.7.3.1. The Chief Financial Officer is responsible for establishing and maintaining an
internal control structure designed to ensure that the assets of the City are
protected from loss, theft or misuse. The investment portfolio and related
investment transactions shall be reviewed and verified by staff members other
than the investment officer originating the transaction.
8.7.3.2. The internal control structure shall be designed to provide reasonable assurance
that these objectives are met. The concept of reasonable assurance recognizes
that the cost of a control should not exceed the benefits likely to be derived and
the valuation of costs and benefits requires estimates and judgments by
management. At a minimum, the internal controls shall address the following
points:
8.7.3.2.1. Control of collusion
8.7.3.2.2. Separation of transaction authority from accounting and recordkeeping
8.7.3.2.3. Custodial safekeeping
8.7.3.2.4. Avoidance of physical delivery securities
8.7.3.2.5. Clear delegation of authority to subordinate staff members
8.7.3.2.6. Written confirmation of transactions for investments and wire transfers
8.7.3.2.7. Dual authorizations of wire transfers
8.7.3.2.8. Staff training and
8.7.3.2.9. Review, maintenance and monitoring of security procedures both
manual and automated.
8.7.3.3. The Washington State Auditor shall provide an annual independent review to
assure compliance with state law, policies and procedures.
8.8. Authorized Investments and Investment Parameters
8.8.1. Authorized Investments
8.8.1.1. Any local government in the state of Washington, as outlined in RCW 39.59 may
invest in:
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8.8.1.1.1. Bonds of the state of Washington and any local government in the state
of Washington;
8.8.1.1.2. General obligation bonds of a state and general obligation bonds of a
local government of a state, which bonds have at the time of
investment one of the three highest credit ratings of a nationally
recognized rating agency;
8.8.1.1.3. Subject to compliance with RCW 39.56.030, registered warrants of a
local government in the same county as the government making the
investment;
8.8.1.1.4. Certificates, notes, or bonds of the United States, or other obligations
of the United States or its agencies, or of any corporation wholly owned
by the government of the United States; or United States dollar
denominated bonds, notes, or other obligations that are issued or
guaranteed by supranational institutions, provided that, at the time of
investment, the institution has the United States government as its
largest shareholder;
8.8.1.1.5. Federal home loan bank notes and bonds, federal land bank bonds and
federal national mortgage association notes, debentures and
guaranteed certificates of participation, or the obligations of any other
government sponsored corporation whose obligations are or may
become eligible as collateral for advances to member banks as
determined by the board of governors of the federal reserve system;
8.8.1.1.6. Bankers’ acceptances purchased on the secondary market;
8.8.1.1.7. Commercial paper purchased in the secondary market, provided that
any local government of the state of Washington that invests in such
commercial paper must adhere to the investment policies and
procedures adopted by the state investment board; and
8.8.1.1.8. Corporate notes purchased on the secondary market, provided that any
local government of the state of Washington that invests in such notes
must adhere to the investment policies and procedures adopted by the
state investment board.
8.8.1.1.9. Certificates of Deposit of financial institutions which are qualified public
depositories (RCW 39.58.010)
8.8.1.1.10. Local Government Investment Pool managed by the Washington State
Treasury (RCW 43.250)
8.8.2. Suitable Investments and Diversification
8.8.2.1. Suitable investments for the City were selected due to the lower level of credit risk
exposure and ongoing resources required for oversight of credit risk. To ensure
diversification within the investment portfolio, limits have been placed on each
class of securities. To eliminate risk of loss resulting from over-concentration of
assets in a specific maturity, issuer, or class of securities, assets in all City funds
shall be diversified by maturity, issuer, and class of security. Diversification
strategies shall be determined and revised periodically by the investment officers.
INVESTMENT TYPE DEFINITION MAXIMUM %
OF PORTFOLIO
U.S. Treasury Obligation Direct obligations of the United States Treasury 100%
GSE – Agency Obligations Government Sponsored Enterprises (GSEs) – Federal
Instrumentality Securities include, but are not limited
to Federal National Mortgage Association (FNMA), the
100%
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Federal Home Loan Mortgage Corporation (FHLMC),
Federal Home Loan Banks (FHLB), and the Federal
Farm Credit Bureau (FFCB). Although 100% of the
portfolio may be allocated to agencies, no more than
30% of the portfolio should be allocated to any one
agency to ensure diversification among agency
securities.
Local Government Investment
Pool (LGIP)
Investment Pool managed by the Washington State
Treasury office. RCW 43.250
100%
Certificates of Deposit Non-negotiable Certificates of Deposit of financial
institutions which are qualified public depositories as
defined by RCW 39.58 and in accordance with
restrictions therein.
25%
Municipal Debt Obligations Bonds of the state of Washington and any local
government in the state of Washington; at the time of
investment the bonds must have one of the three
highest ratings of a national rating agency. Debt of the
City is not required to be rated.
25%
8.8.2.2 Due to fluctuations in the aggregate surplus funds balance, maximum percentages
for a particular issuer or investment type may be exceeded at a point in time
subsequent to the purchase of a particular issuer or investment type. Securities
need not be liquidated to realign the portfolio; however, consideration should be
given to this matter when future purchases are made to ensure that appropriate
diversification is maintained.
8.8.3 Maturities and Mitigating Market Risk in the Portfolio
8.8.3.1 Market risk is the risk that the portfolio value will fluctuate due to changes in the
general level of interest rates. The City recognizes that, over time, longer -
term/core portfolios have the potential to achieve higher returns with a higher
volatility of return. The City shall provide adequate liquidity for short-term cash
needs and make longer-term investments only with funds that are not needed for
current cash flow purposes. The City adopts the following strategies to provide
adequate liquidity and to mitigate its exposure to market risk.
MATURITY CONSTRAINTS DEFINITION MINIMUM %
OF PORTFOLIO
Under 30 days Liquidity Funds - Readily Available Funds: Local
Government Investment Pool
Bank deposits
Certificates of deposits
10%
Under 1 year Cash Flow Requirements for Operating Budget
Includes short-term liquid funds and short-term
maturities maturing within one year.
25%
Under 5.50 years Funds in Excess of Liquidity Requirements
Those funds not required for immediate use or to
meet operating budget requirements may be invested
in longer-term maturities. The long-term portion of
the portfolio includes higher quality and liquid
securities such as treasuries, agencies and municipal
100%
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8.8.4 Continuing Evaluation of Market Risk and Liquidity
8.8.4.1 As a general practice securities will be purchased with the intent to hold to
maturity. However, it is acceptable for securities to be sold under the following
circumstances:
8.8.4.1.1 A security with a declining credit may be sold early to protect the
principal value of the portfolio.
8.8.4.1.2 The portfolio duration or maturity ladder needs to be adjusted to better
reflect the structure of the underlying portfolio benchmark.
8.8.4.1.3 A security exchange that would improve the quality, yield and target
maturity of the portfolio based on market conditions.
8.8.4.1.4 A sell of a security to provide for unforeseen liquidity needs.
8.9 Performance Standards
8.9.1 The market return performance will be considered after compliance with state and local
laws, and after safety of principal and cash flow requirements are met. The investment
portfolio shall be designed to attain a market-average rate of return throughout economic
cycles using the Local Government Investment Pool and the 12-month moving average of
the two-year Treasury as benchmarks.
8.10 Reporting Requirements
8.10.1 The City Treasurer is charged with the responsibility of preparing a quarterly report to the
City Council and City Manager on investment activity including securities holdings, cash
balances, market values in the investment portfolio and distribution by type of investment.
The report will be prepared in a manner which will allow the governing body to ascertain
whether investment activities during the reporting period have conformed to the
investment policy and that the portfolio performance meets the appropriate benchmarks.
8.11 Distribution of Income
8.11.1 Interest income received shall be distributed monthly based on average daily cash balances
within each participating fund.
8.12 Investment Policy Adoption
8.12.1 The investment policy shall be reviewed at a minimum every two years to ensure its
consistency with current law, financial and economic trends and overall investing objectives.
The policy should be adopted by resolution of the City Council.
bonds. Maturities longer than 5.50 years must have
approval of the Chief Financial Officer.
WAM (weighted average maturity) To ensure liquidity needs are met, the weighted
average maturity and effective duration of the overall
portfolio shall not exceed three years without the
approval of the Chief Financial Officer.
3.0 years
Bond Proceeds for Capital
Improvement Projects
Bond proceeds should be placed in the Local
Government Investment Pool to be readily available
for capital project payments. Exceptions for
investment of bond proceeds may be made should a
capital improvement project exceed one year
construction duration and with prior approval of the
Chief Financial Officer.
100% of Bond
Proceeds
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City Treasury Function Responsibilities
Function Employee(s) Responsible
1. Authorization of investment transactions
a. Formal investment policy
- Prepared by Accounting Staff
- Adopted by City Council
2. Execution of investment transactions Chief Financial
Officer/Treasurer/Investment designee
3. Timely recording investment transactions
a. Recording of investment transactions in
Treasurer’s records
Treasurer/Investment designee
4. Verification of investment
a. Receipt of broker confirmation
b. Receipt of safekeeping confirmation
Accounting Staff
5. Safeguarding of Assets and Records Treasurer
Reconciliation of Treasurer’s records
to accounting records
Accounting Staff
Reconciliation of Treasurer’s records
to bank statement and safekeeping records
Accounting Staff
Review of Portfolio
a. Financial institution’s financial
condition
b. Safety, liquidity, and yields of
investments
Chief Financial Officer
Maintaining complete and current financial
institution and brokerage company files
Accounting Staff
Periodic reviews of authorized public
depositories
City Treasurer
6. Management’s periodic review of the investment
portfolio in conformance to stated investment
policy
- Monthly City Treasurer
- Quarterly Chief Financial Officer/City Manager/City Council
7. Annual review of the Investment Policy
and Investment Program
Treasurer/Chief Financial Officer
8. Changes in the Investment Policy
- Prepared by Accounting Staff
- Adopted by City Council
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9. PURCHASING POLICIES
9.1. Goal
9.1.1. This document establishes guidelines and clarifies the policies for purchasing supplies and
materials, and contracting for services by the City of Port Angeles. The City of Port Angeles
dedicates itself to purchasing goods and services seeking maximum operational value
thereby assuring the prudent and economical use of public monies. The purpose of this
policy is to ensure that authorized personnel approve purchases in advance whenever
possible, that expenditures are recorded electronically as soon as pos sible, to maximize
internal controls without sacrificing efficiency, and to provide management with the ability
to analyze purchasing patterns and cash flow requirements. It is not the intent of this policy
to limit or prohibit contracting procedures or options authorized by State law.
9.2. Interpretation of this Policy
9.2.1. The Chief Financial Officer shall be responsible for interpretation of this Policy.
9.3. Financial Information Provided to Council
9.3.1. Prior to any consideration for approval of a motion, resolution, or ordinance for City Council
authorization to purchase or acquire any goods or services, including professional services
and construction contracts, for the City of Port Angeles, the Council shall be provided with a
Fiscal Note prepared by the Chief Financial Officer or designee that details the source and
amount(s) of revenues proposed to pay for the purchase together with a budget for the
acquisition.
9.3.1.1. The Fiscal Note is required to be included in the Agenda packet delivered to the
Council prior to the meeting as well as the packet posted on the City’s website.
9.3.1.2. No proposed acquisition of goods or services may be considered by the Council
without the inclusion of a Fiscal Note designed to allow the City Council to make
an informed decision on the particular issue at hand.
9.3.1.3. If the proposed acquisition of goods or services is part of a larger project, the
Fiscal Note shall include the total budget for the project, the source of funding
and a summary of all expenditures made prior to the proposed acquisition.
9.3.2. On a quarterly basis, the Chief Financial Officer shall provide Council with a written report
and analysis of the City’s Operating and Capital budgets. The report shall be provided by
the 25th day following the end of the quarter unless the Chief Financial Officer has informed
the City Council and City Manager of the need for a delay in the delivery of the report. In
the message from the Chief Financial Officer informing the City Council and C ity Manager of
the delay in providing the quarterly report, the Chief Financial Officer shall provide the
reason for the delay together with the projected date for the delivery of the quarterly
report.
9.3.2.1. The quarterly report shall be posted to the City website following delivery to the
City Council.
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9.4. Purchasing Policy Definitions
9.4.1. Approval Levels: Set by City Council, these are specific dollar levels of authorization for the
approval of purchases and payments made on behalf of the City of Port Angeles as noted
below.
Purchase Amount Authorizing Official/Entity
$0.01 - $4,999.99 Department Director
$5,000.00 - $14,999.99 Department Director & Chief Financial Officer
$15,000.00 – 24,999.99 City Manager, Department Director & Chief Financial
Officer
$25,000.00 or greater City Council + City Manager, Department Director &
Chief Financial Officer
9.4.2. Any contract or agreement for the purchase of goods or services shall require authorizing
signatures:
Purchases of Less than $5,000:
Purpose Authorizing Official/Entity
Approval to purchase Department Director
Purchases of Greater than $5,000 but less than $14,999.99:
Purpose Authorizing Official/Entity
Approval to Purchase Department Director
Availability of Funds Department Director, Chief Financial Officer
Purchases of Greater than $15,000:
Purpose Authorizing Official/Entity
Approval to Purchase City Manager
Department Approval Department Director
Availability of Funds Chief Financial Officer
Approval as to Form City Attorney
9.4.3. Blanket Purchase Order (BPO): Otherwise known as an “Open Purchase Order,” a BPO is a
purchase order used for purchases with local vendors or frequently utilized vendors. BPOs
are created with a set dollar amount and are received and invoiced as purchases are made.
BPOs are generally for items that are needed daily, but not always anticipated. BPOs are
also used for annual agreements such as copier charges, maintenance agreements, etc.
9.4.4. Emergency Purchases: An emergency purchase is created by an urgent need affecting the
health and safety of citizens, which requires immediate action, and where the occurrence
or condition is “unforeseen.” Lack of anticipation or planning cannot be deemed as a cause
for declaring an emergency.
9.4.5. Field Purchase Order (FPO): FPOs can be used as a quick way to obtain goods or services.
An FPO can also be used to request advance payments for legitimate business expenses
such as travel, food, lodging, and conference fees. FPO’s should not be used for purchases
over $1,000 unless as specified in policy.
9.4.6. Purchase Order (PO): Computer generated numbered document used to authorize a
vendor to ship merchandise or to perform services for a proposed price. POs are generated
by a requisition, or documentation that has been app roved at all required approval levels.
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With regular purchase orders, you must add the line item information describing the
merchandise or services when you create them. With blanket purchase orders, you can add
the line items when you receive or invoice them.
9.4.7. Requisition: A request to order goods that must be processed through approval levels
before a purchase order can be generated. Funds are then pre-encumbered at this
requisition phase of purchasing. Buyers then process items from approved requisitions
onto purchase orders to selected vendors.
9.4.8. Sole Source & Single Source: A sole source can be a manufacturer, software developer or
service provider that sells direct and there are no other sources offering an “equal” product
or service. A single source could be a distributor/wholesaler/retailer that has a contractual
agreement for a specific territory to the exclusion of others.
9.5. Policy Requirements
9.5.1. All employees making purchases on behalf of the City of Port Angeles shall maintain
effective and professional public, vendor and customer relationships. Opportunity will be
provided to all responsible suppliers to do business with the City of Port Angeles unless this
purchase is required from a sole source. No official or employee will be interested
financially in contracts or purchases entered into by the City of Port Angeles.
9.5.2. Most purchases will be processed with one of these options:
9.5.2.1. Requisitioned Purchase Orders (PO)
9.5.2.2. Blanket Purchase Order (BPO)
9.5.2.3. Field Purchase Order (FPO)
9.5.3. Finance will administer travel, credit card purchases, utility bills, phone charges, and petty
cash in accordance with City policies and statutory requirements.
9.5.4. Authorization levels of purchases $5,000 and under will be determined by the Department
Director. Each Department Director shall supply the Chief Financial Officer with
departmental policy for individual authorization. Individuals authorized to approve
requisitions for purchase orders will only have security set up for their level of approval and
with those accounts as authorized.
9.6. Requisitioned Purchase Orders (PO)
9.6.1. Purchase Orders are created from an authorized requisition. Purchase Orders are for all
purchases other than those authorized by blanket purchase orders and field purchase
orders. All purchases for capital items, contracts that are subject to retainage, and
inventory items need to be made with a purchase order. The requisition for purchase is
processed and approved before the purchase is physically made, however this may not be
the case in emergency purchases. With regular purchase orders, the line item must be
added describing the merchandise or services from the authorized requisition. An
authorized person creates the purchase orders, that includes: purchase order information,
such as purchase order date, type, and buyer name; vendor information, suc h as vendor
number, name, and terms; quantities of items ordered; unit cost of each item ordered; and
inventory information for each item on the purchase order.
9.7. Blanket Purchase Order (BPO)
9.7.1. Approval levels established by policy are required as signatures on the Blanket Purchase
Order (BPO) request form to authorize creation of a BPO.
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9.7.2. BPOs are used for frequently purchased items from a frequently utilized vendor. BPOs are
usually created at the beginning of the year with an annual anticipated dollar amount of
expected purchases. Some department heads or directors may indicate the maximum
dollar amount of a single purchase to be entered on a BPO. When a purchase exceeds the
authorized maximum, a requisition/purchase order will need to be created for that
purchase. The BPO request form includes a section to be completed authorizing the
increase on a BPO when the initial balance requested is expended. On BPOs, line items are
added as the items are received.
9.8. Receipt of Goods
9.8.1. When items are received from a vendor, the receipt is recorded against an open purchase
order. Open purchase orders are purchase orders that are not canceled and still have items
that are not fully received, invoiced, or both. All items on a purchase order can be received
at once or individual items or quantities of an item received separately. The department
that created the original purchase order is responsible to receipt all items on the purchase
order.
9.9. FPO (Field Purchase Order)
9.9.1. An FPO can be used for smaller purchases that may be under $1,000, such as subscriptions,
registrations, and routine budgeted transactions. All items previously posted to an account
other than an expense account will be paid using an FPO. FPOs may also be used for larger
transactions, insurance payments, debt redemption, other liabilities previously approved,
and to request advance payments for legitimate business expenses. Contracts having
retainage need to be processed using purchase orders.
9.10. Invoicing
9.10.1. Claims shall be processed for payment by the Finance Department after proper processing
and receiving is completed at the department level. Invoices should be sent directly to the
Finance Department from the vendor. All invoices should be complete with the following:
(1) City purchase order number; (2) complete description of goods or service provided; (3)
quantity; (4) unit prices and extensions; (5) discount terms; and (6) invoice number.
9.10.2. Adequate documentation will be attached to City payment vouchers to assure that it
supports a valid, legally authorized purchase. Payments will be made only on original
invoices. Properly prepared and approved requisitions, purchase orders, and receiving
reports will be attached when applicable.
9.10.3. All City claims approved by the Departments are certifying tha t the materials have been
furnished, the services rendered or the labor performed, and that the claim is a just, due
and unpaid obligation against the City, prior to submitting the claim to the Finance
Department for payment.
9.10.4. The department initiating the claim will be responsible for compliance and documentation
for bid requirements, prevailing wages, approved change orders, and any additional
statutory consideration related to the transaction.
9.11. Check Signing
9.11.1. To be valid, all checks in payment of claims must be signed by both the City Manager and
the Chief Financial Officer.
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9.12. Approval of Payment Claims
9.12.1. It shall be the duty of the Chief Financial Officer to present at each regularly scheduled
meeting of the City Council, a list showing all claims paid and the date of payment to enable
the City Council to make inquiry on any item appearing thereon. Upon satisfaction of such
inquiry, if any, the City Council shall by motion approve the report of claims paid as a
permanent record.
9.13. Contracts
9.13.1. The City Manager or his designee may sign contracts that do not obligate the City of Port
Angeles in excess ofof less than $25,000.
9.13.2. The City Manager or his designee is authorized to enter into lease or rental agreements,
provided the agreement does not obligate the City of Port Angeles in excess of $25,000 and
the agreement is for a period that does not exceed one year .
9.13.3.
9.13.4.9.13.2.
9.14. Lease Contracts
9.14.1. All lease contracts will be in accordance with Governmental Accounting Standards Board
(GASB) Statement 87 and will be treated as asset and liability leases. This applies to both
the lessor and lessee perspective. The following definitions must be consider ed in
evaluating whether or not a contract constitutes a lease contract:
9.14.1.1. Lease – A contract that conveys control of the right to use another entity’s non-
financial asset as specified in the contract for a period of time in an exchange or
exchange-like transaction.
9.14.1.1.1. Lease types as defined include short-term, transfer of
ownership and other leases.
9.14.1.1.1.1. Short-term leases are limited to a
noncancellable term of 12 months or less.
9.14.1.1.1.2. Transfer of ownership lease contracts
cannot contain termination options and the underlying
contract transfers ownership to the lessee before the
contract expiration.
9.14.1.1.1.3. All other lease types include contracts
or agreements that include the right of use of property or
assets in exchange for payment.
9.14.1.2. Right to Use – The right to obtain the present service capacity from use of the
underlying asset and the right to determine the nature and manner of its use.
9.14.2. An inventory of all leases will be maintained by the Finance Department, including other
contracts and agreements that meet the definition of the GASB lease standard.
9.14.3. The following requirements must be included in each lease contract:
9.14.3.1. Lease term – The period during which a lessee has a noncancelable right to use
an underlying asset, plus periods covered by the lessee’s or the l essor’s option to
extend or terminate the lease. A clear start and end date must also be apparent.
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9.14.3.2. Lease payments – Identify when and how much will be paid/received over the
life of the lease. Amounts reported in the statement of position will be
measured by the present value of expected payments over the life of the lease.
9.14.3.3. Interest rate – This is the rate being charged to the lessee for the financing of the
use of the lessor’s asset, which will serve as the discount rate used to determine
the present value of the lease. If the rate is not explicit, an implicit rate can be
calculated and used if there is sufficient information in the lease agreement to
do so. Otherwise, the lessee’s incremental borrowing rate may be used, which is
the rate that would be charged for borrowing the lease payments.
9.14.4. A lease asset capitalization threshold will be set at $10,000.
9.15. Lease Accounting and Reporting
9.15.1. For the purposes of financial reporting lease liability will be calculated in one or more of the
following ways as determined by the fund type and the GASB accounting standard
requirements:
9.15.1.1. The lease liability will initially be measured at the present value of payments
expected to be made during the lease term.
9.15.1.2. The lease asset will be measured as the sum of the lease liability, plus any initial
direct costs and lease payments prior to the lease start, less any incentives.
9.15.1.3. Both a lease repayment schedule and an amortization schedule of the intangible
right-to-use the asset may need to be prepared.
9.15.1.4. The other financing source should be equal to the lease liability.
9.14.9.16. Authority to Enter into Contracts, Leases or Rental Agreements
9.14.1.9.16.1. The City Manager or his designee is hereby authorized to enter into contracts and
leases or rental agreements provided that the following conditions are met:
9.14.1.1.9.16.1.1. The contract does not obligate the City to expend in excess of $25,000.
9.14.1.2.9.16.1.2. The particular expenditure of City funds has been approved in the City
Budget as approved by the City Council.
9.14.1.3.9.16.1.3. The lease or rental agreement is for a period that does not exceed one
year and involves a total rental amount or value that does not exceed $25,000.
As deemed appropriate by the City Manager, the City Council's Real Estate
Committee may be consulted prior to executing any such lease or rental
agreement.
9.14.1.4. The City Manager or his designee shall notify the Council in writing of contracts
entered into pursuant to this section.
9.14.2.9.16.1.4.
9.15.9.17. Change orders on construction contracts and amendments to professional service
agreements
9.15.1.9.17.1. Upon subsequent approval by the City Council of a single or collective series of change
orders requiring Council approval, the approval threshold shall be re-set based on the most
recent Council–approved contract amount as the starting point.
9.15.2.9.17.2. When approval occurs by the City Manager or respective department head for change
orders or professional services agreement amendments according to the conditions stated
Formatted: Indent: Left: 1.49", Hanging: 0.64"
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above, they shall notify the City Council of the change order or amendment in the next
bi-monthly contract status report submitted to City Council.
9.16.9.18. Definition of credit card
9.16.1.9.18.1. As used in this chapter, "credit card" means a card or device issued under an
arrangement pursuant to which the issuer gives to a cardholder the privilege of obtaining
credit from the issuer.
9.17.9.19. Issuance, use and control of credit cards
9.17.1.9.19.1. The City Council hereby adopts the following system for the issuance, use and control
of credit cards by City officials and employees:
9.17.1.1.9.19.1.1. The Finance Department shall implement the following system for the
distribution, authorization, control, credit limits and payment of bills related to
the use of credit cards by City officials and employees:
9.17.1.1.1.9.19.1.1.1. Distribution. Credit cards will be distributed to those
City officials and employees who have job responsibilities which
would be facilitated by the use of a credit card and the credit card
use would benefit the City. This shall include the City Council, City
Manager, Department Heads, Division Managers, and other
officials and employees as determined by the City Manager.
9.17.1.1.2.9.19.1.1.2. Authorization and control. The Finance Department
shall develop the implementation guidelines and accounting
controls to ensure the proper usage of credit cards and credit card
funds.
9.17.1.1.3.9.19.1.1.3. Credit limits. The Finance Department shall set credit
limits on each credit card issued. The credit limit shall not exceed
$2,500 without written approval of the City Manager.
9.17.1.1.4.9.19.1.1.4. Payment of bills. The Finance Department shall
establish and implement a written procedure for the payment of all
credit card bills.
9.17.1.1.5.9.19.1.1.5. Unauthorized charges. No employee shall use the
City-issued credit card for non-City business use. Any employee
who violates this policy by using a City-issued credit card for non-
City business shall be subject to disciplinary action and shall be
billed for all charges on the credit card. The City Manager or
his/her designee is authorized and directed to make payroll
deductions to recover any unauthorized charges.
9.17.1.1.6.9.19.1.1.6. Cash advances. Cash advances on credit cards are
prohibited.
9.17.2.9.19.2. The Finance Department is authorized to adopt any additional procedures or policies
necessary to implement the provisions of this section.
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10. POST ISSUANCE COMPLIANCE FOR GOVERNMENTAL BONDS
10.1. Scope:
10.1.1. This Post Issuance Compliance Policy addresses the City of Port Angeles, Washington’s (the
“City”) compliance with federal tax, federal securities and state law requirements and
contractual obligations applicable to the City’s tax-advantaged governmental bond issues.
The Post Issuance Compliance Policy applies generally to all of the City’s tax-exempt
governmental bonds, and other bonds subject to comparable requirements, such as taxable
direct-pay bonds. As used in this Post Issuance Compliance Policy, references to “bonds”
include bonds, lines of credit, bond anticipation notes, and equipment and other financing
leases.
10.2. Purpose:
10.2.1. This Post Issuance Compliance Policy is intended to improve the City’s ability to:
10.2.1.1. Prevent violations in bond requirements from occurring in the first place,
10.2.1.2. Timely identify potential violations, and
10.2.1.3. Correct identified violations through appropriate remedial steps.
10.3. Schedule of Review:
10.3.1. The Post Issuance Compliance Policy is to be reviewed at least annually and upon each
issuance of new bonds, including refunding bonds. In connection with this periodic review,
the Chief Financial Officer will consider whether the Post Issuance Compliance Policy should
be amended or supplemented:
10.3.1.1. To address any particular requirements associated with the new bond issue, or
10.3.1.2. To reflect general changes in requirements since the prior bond issue.
10.4. Requirements at Bond Closing:
10.4.1. Numerous federal tax, federal securities, and state law requirements must be met in
connection with a bond issue. In some circumstances (e.g., revenue bonds) rate and other
covenant requirements will also need to be satisfied. These requirements are addressed in
the bond transcript completed at bond closing, and confirmed in certain respects by the
legal opinions included in the bond transcript.
10.5. Requirements after Bond Closing:
10.5.1. Other federal tax, federal securities law, and state law requirements and contractual
obligations require on-going monitoring after the issuance of the bonds.
10.6. Officials or Employees Responsible for Review:
10.6.1. The following officers and employees of the City are identified as the responsible person s
for reviewing compliance with the City’s post-issuance obligations. Each responsible
individual is to institute a calendaring system to track compliance with tasks in a timely
manner.
10.6.1.1. Federal tax requirements, including arbitrage, use of proceeds, use o f facilities
and IRS filings:
10.6.1.2. Arbitrage, IRS Filings: Chief Financial Officer or as designated by Chief Financial
Officer
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10.6.1.3. Use of Proceeds: Chief Financial Officer or as designated by Chief Financial
Officer
10.6.1.4. Use of Facilities: Department Director as designated by City Manager
10.6.2. Continuing disclosure requirements:
10.6.2.1. Annual Filing: Chief Financial Officer or as designated in writing by the Chief
Financial Officer
10.6.2.2. Material Event Notices: Chief Financial Officer or as designated by Chief
Financial Officer
10.6.2.3. Prior to filing each annual filing or material event notice, the Chief Financial
Officer is to circulate the draft filing or notice to bond counsel or to the City
Attorney for review.
10.6.3. The Chief Financial Officer is responsible for reviewing the other requirements under this
policy.
10.6.4. The responsible persons identified above may need to confer, from time to time, with the
City’s bond counsel and/or financial advisor (if any) to confirm the applicability and scope of
the requirements outlined in this policy. For reference, the contact information for these
advisors is provided below:
10.6.4.1. Pacifica Law Group LLP, as bond counsel
10.6.4.1.1. Deanna Gregory at 206-245-1716 or
Deanna.gregory@pacificalawgroup.com, or
10.6.4.1.2. Stacey Crawshaw-Lewis at 206-245-1714 or
Stacey.Lewis@pacificalawgroup.com
10.6.4.1.3. Edward McCullough at 206-245-1727 or
Edward.mccullough@pacificalawgroup.com
10.6.5. Training of the responsible official/employee. The City provides opportunities for training
to the responsible individuals, specifically including the following training opportunities:
10.6.5.1. At or after bond closing, a conference call or meeting with bond counsel to
review the requirements applicable to a new bond issue.
10.6.5.2. Identify other training activities, if applicable – such as participation in in-house
training sessions, CPE seminars, or seminars conducted by professional
organizations (e.g., GFOA, WFOA, WMTA)
10.6.6. Records to be Maintained. The following documents are maintained in connection with
each bond issue. The goal is to retain adequate records to substantiate compliance with
federal tax, securities law, state law and other contractual requirements applicable to the
City’s bonds. Generally, records should be maintained for the term of the bonds (plus any
refunding) plus four years. Unless otherwise specified, the following records are to be
maintained in the office of the Chief Financial Officer.
10.6.6.1. Complete bond transcript (provided by bond counsel) in CD or hard copy.
10.6.6.2. Records of investment of bond proceeds in a format showing the date and
amount of each investment, its interest rate and/or yield, the date any earnings
are received and the amount earned, and the date each investment matures
and if sold prior to maturity, the sale date and sale price.
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10.6.6.3. Records of expenditure of bond proceeds in a format showing the amount,
timing, and the type of expenditure.
10.6.6.4. Records of invoices or requisitions, together with supporting documentation
showing payee, payment amount, and type of expenditure, particularly for
projects involving multiple sources of funds.
10.6.6.5. Records necessary to document the allocation of bond proceeds and other
sources of funds to particular projects or portions of projects.
10.6.6.6. Records documenting the final allocation of bond proceeds to projects, including
any reallocations of bond proceeds, in a format showing the timing and
substance of the reallocation, if applicable.
10.6.6.7. Records demonstrating compliance with arbitrage and rebate requirements,
including arbitrage calculations, documentation of spending exceptions to
rebate, rebate reports and IRS filings and payments.
10.6.6.8. Copies of contracts relating to the use of the bond-financed facility, including
leases, concession agreements, management agreements and other agreements
that give usage rights or legal entitlements with respect to the facility to
nongovernmental persons (e.g., advertising displays, cell tower leases, and
naming rights agreements).
10.6.6.9. Copies of contracts relating to ongoing compliance with respect to the bonds.
10.6.6.10. Copies of any filings or correspondence with the IRS, the SEC or other regulatory
body.
10.7. Investment of Bond Proceeds:
10.7.1. In general, bond proceeds and certain other funds can only be invested at a rate that
exceeds the yield on the bonds under limited circumstances. Furthermore, amounts earned
by investing above the bond yield must be rebated to the IRS, unless the City qualifies as a
small issuer or a spending exception is met. The arbitrage and rebate requirements for
each bond issue are detailed in the federal tax certificate. The Chief Financial Officer (or the
City Treasurer if assigned the responsibility in writing by the Chief Financial Officer) will
monitor the investment and expenditure of the funds and accounts listed below. The Chief
Financial Officer (or the City Treasurer if assigned the responsibility in writing by the Chief
Financial Officer) determines whether the bond issue meets the requirement for one of the
expenditure exceptions to arbitrage rebate. The Chief Financial Officer (or the City
Treasurer if assigned the responsibility in writing by the Chief Financial Officer) in
consultation with bond counsel will determine whether a rebate calculation is necessary
and, if so, will perform the calculation or engage a rebate consultant. The Chief Financial
Officer (or the City Treasurer if assigned the responsibility in writing by the Chief Financial
Officer) will arrange for the payment of any required rebate to the IRS together with the
appropriate IRS form on the dates described below.
10.7.1.1. Funds to Monitor.
10.7.1.1.1. Bond or debt service funds/accounts
10.7.1.1.2. Project or construction funds/accounts
10.7.1.1.3. Debt service reserve funds/accounts
10.7.1.1.4. Other accounts with bond proceeds or amounts pledged to pay
bonds
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10.7.1.2. Arbitrage Reports; Rebate May Be Due.
10.7.1.2.1. During construction, monitor expenditures to confirm satisfaction
of expected exception to rebate (such as six month exception, 18
month exception, 24 month exception)
10.7.1.2.2. The first rebate payment is due five years after date of issue plus 60
days
10.7.1.2.3. Rebate is due every succeeding five years if there are unspent gross
proceeds of the bonds
10.7.1.2.4. Final rebate payment is due 60 days after early redemption or
retirement of the bonds
10.7.1.3. Limitations on Type of Investments. Bond proceeds must be invested as
permitted under state law. In addition, the bond ordinance or any bond
insurance agreement may further limit the permitted investments. To monitor
compliance with these investment restrictions, the City invests bond proceeds in
the State Local Government Investment Pool as well as other investments
authorized by the City’s Investment Policy and Washington State law.
10.7.1.4. Use of Bond Proceeds During the Construction Period.
10.7.1.4.1. Monitoring the expenditure of bond proceeds is necessary to
assure that the required amount of bond proceeds are expended
for capital expenditures and that not more than 10% of the bond
proceeds are expended for projects that will be used for in a
private trade or business (including by the federal government and
nonprofit entities).
10.7.1.5. The Chief Financial Officer is responsible for reviewing the transcript for the
bonds, and in particular, the authorizing documents and the federal tax
certificate, as well as invoices and other expenditure records to monitor that the
bond proceeds are spent on authorized project costs.
10.7.1.6. If, at the completion of the project, there are unspent bond proceeds, the Chief
Financial Officer, conferring with bond counsel, will direct application of the
excess proceeds for permitted uses under federal tax law, state law, and bond
authorization documents.
10.7.1.7. If the project involves bond proceeds and other sources of funds and included
both governmental and nongovernmental use of the financed facilities , the Chief
Financial Officer will undertake a final reconciliation of bond proceeds
expenditures with project costs no later than 18 months after the later of the
date of expenditure or the date that the project is placed in service (but in no
event more than five years after the date of issue).
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10.8. Use of Bond-Financed Facilities:
10.8.1. Monitoring (and limiting) any private use of the bond-financed facility is important to
maintaining the federal tax treatment of governmental bonds. In general, no more than
10% of the bond-financed facility can be used in a private trade or business (including by
the federal government and nonprofit entities). Private use can arise through any of the
following arrangements, either directly or indirectly.
10.8.2. Types of Private Use
10.8.2.1. Selling all or a portion of the facility
10.8.2.2. Leasing all or a portion of the facility
10.8.2.3. Entering into a management contract for the facility (except for qualified
management contracts under IRS Rev. Proc. 97-13)
10.8.2.4. Use of all or a portion of the facility for research purposes under a research
contract (except for qualified research contracts under IRS Rev. Proc. 97-14)
10.8.2.5. Entering into contracts giving “special legal entitlement” to the facility (for
example, selling advertising space or naming rights)
10.8.3. Procedures for monitoring private use; procedures reasonably expected to timely identify
noncompliance.
10.8.3.1. All leases and other contracts involving bond-financed property will be sent prior
to execution to the Chief Financial Officer for review.
10.8.4. Procedures ensuring that the City will take steps to timely correct noncomplian ce.
10.8.4.1. If the City takes official action to sell, lease or otherwise change the use of bond-
financed facilities to private use, action should be taken under Treas. Reg. §
1.141-12 within 90 days to apply net proceeds of the sale or lease of the facility
to other qualifying capital expenditures or to redeem or defease bonds. Upon a
determination that there has been or could be a change in use of a bond-
financed facility under the monitoring procedures described above, the Chief
Financial Officer shall consult with bond counsel and apply net proceeds of the
change in use as required.
10.9. Continuing Disclosure:
10.9.1. The City is required to make annual filings with the Municipal Securities Rulemaking Board
(“MSRB”) as described in the continuing disclosure undertaking for each bond issue (which
may include tax-exempt or taxable bonds), and to file notice of certain material events.
10.9.1.1. Submissions will be made in electronic form through the MSRB’s web-based
system known as Electronic Municipal Market Access (“EMMA”), currently
available at http://www.emma.msrb.org. Submissions will be made in word-
searchable PDF.
10.9.1.2. Annual filings to be made:
10.9.1.2.1. Financial information and operating data about the City included in
the Official Statement for the bonds
10.9.1.2.2. Change in fiscal year; other information described in the continuing
disclosure undertaking
10.9.1.2.3. Audited financial statements
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10.9.1.2.4. These reports must be filed no later than nine months (e.g.
September 30) for the majority of the City’s bonds, and seven
months (e.g. July 31) with respect to one issue, after the end of the
City’s fiscal year (the City’s fiscal year currently ends December 31)
10.10. Material event notices:
10.10.1. The City is required to provide or cause to be provided to the MSRB, in a timely manner,
notice of certain events with respect to the bonds. Amendments to SEC Rule 15c2 -12 (the
“Rule”) in 2010 expanded the list of events requiring disclosure and added a 10-day
compliance period for undertakings effective after December 1, 2010.
10.10.2. Generally, if any of the following events occur, the City shall provide, or cause to be
provided, to the MSRB, in a timely manner not in excess of ten business days after the
occurrence of the event, notice of the occurrence of the any of the following events with
respect to the bonds:
10.10.2.1. Principal and interest payment delinquencies
10.10.2.2. Non-payment related defaults, if material
10.10.2.3. Unscheduled draws on debt service reserves reflecting financial difficulties
10.10.2.4. Unscheduled draws on credit enhancements reflecting financial difficulties
10.10.2.5. Substitution of credit or liquidity providers, or their failure to perform
10.10.2.6. Adverse tax opinions, the issuance by the IRS of p roposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or
other material notices or determinations with respect to the tax status of the
bonds, or other material events affecting the tax status of the bonds
10.10.2.7. Modifications to the rights of bondholders, if material
10.10.2.8. Bond calls, if material, and tender offers
10.10.2.9. Defeasances
10.10.2.10. Release, substitution, or sale of property securing repayment of the Bonds, if
material
10.10.2.11. Rating changes (both upgrades and downgrades)
10.10.2.12. Bankruptcy, insolvency, receivership or similar event of the City
10.10.2.13. The consummation of a merger, consolidation, or acquisition involving the City
or the sale of all or substantially all of the assets of the City, other than in the
ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such
actions, other than pursuant to its terms, if material
10.10.2.14. Appointment of a successor or additional trustee or the change of name of a
trustee, if material
10.10.3. Procedure for ensuring that notice of the above events is provided to the responsible
individual(s) identified above: Chief Financial Officer (or the City Treasurer if assigned the
responsibility in writing by the Chief Financial Officer)
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10.10.4. Periodic check of information regarding bonds on EMMA. Periodically and at least prior to
each new bond issue, the City will search EMMA for its continuing disclosure filings to
confirm proper filings have been made.
10.11. Compliance with Bond Covenants:
10.11.1. Particularly for revenue bond issues, the City has made rate and other covenants for the
benefit of bond owners. The City monitors compliance with these bond covenants on an
annual basis, as part of its annual audit process. These covenants are summarized below :
Covenant Requirement Document; Section Timing
Rates
Insurance
Sale or disposition
of property
Debt Service
Reserve Fund
Balance
10.11.2. Other Reports. Under the terms of bond insurance policies, letter of credit reimbursement
agreements, debt service reserve surety agreements, financing agreements, loan
agreements, and remarketing agreements, the City may be required to send copies of
budget, disclosure and other documents as well as notice of the issuance of additional
bonds, events of default, redemptions or defeasances, or amendments to the bond
documents. The following entities are required to receive copies of the following
documents or notices.
Entity Type Name/Contact Document; Section Requirement Timing
Bond Insurer
Letter of Credit Bank
Underwriter/Remarketing Agent
Bank
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Date: April 18, 2023
To: Mayor Dexter, Deputy Mayor Meyer, Councilmember Carr, Councilmember
McCaughan, Councilmember Miller, Councilmember Schromen-Wawrin,
Councilmember Suggs
From: Sarina Carrizosa, Finance Director
Subject: Monthly Update on Past Due Utility Accounts - March
JANUARY 2023 FEBRUARY 2023 MARCH 2023
AMOUNT
CHANGE
% CHANGE
FEB - MAR
Number of Customers Past Due 1,806 1,725 1,690 (35) -2.03%
Number of Disconnections for Non-payment - - - - N/A
60 days past due amount 229,585.19 178,871.24 220,843.72 41,972.48 23.47%
90 days past due amount 118,265.18 89,995.13 135,658.32 45,663.19 50.74%
120 days past due amount 1,201,681.33 1,211,304.63 1,179,689.41 (31,615.22) -2.61%
Total amount past due 1,549,531.70 1,480,171.00 1,536,191.45 56,020.45 3.78%
Total Additional Payment Plan Agreements 1 22 52 30 136.36%
CITY OF PORT ANGELES
MONTHLY REPORT ON PAST DUE ACCOUNTS
FEBRUARY - MARCH 2023
-5.0%
5.0%
15.0%
25.0%
35.0%
45.0%
55.0%
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
60 days past due
amount
90 days past due
amount
120 days past due
amount
Total amount past due
FEBRUARY -MARCH 2023
PAST DUE AMOUNTS
JANUARY 2023 FEBRUARY 2023 MARCH 2023 % CHANGE FEB - MAR
April 18, 2023 L - 1