Full Text
VIBRANT ECONOMY RESULTS TEAM REQUEST FOR OFFERS OUTCOME MAP OFFER SUMMARY OFFERS ---PAGE BREAK--- ---PAGE BREAK--- VIBRANT ECONOMY I WANT A DIVERSE AND VIBRANT RANGE OF BUSINESSES AND SERVICES IN REDMOND REQUEST FOR OFFERS TEAM MEMBERS Team Member: Adam O’Sullivan Team Member: Laird Team Member: Dan Werr Team Member: Erik Scairpon Team Member: Jeff Hagen Team Member: Jill Smith Team Member: Joe Averill Team Member: Judy Fani Team Member: Rich Gieseke DASHBOARD INDICATORS Indicator 1: Business Longevity - The number of active businesses in Redmond that have held a Redmond business license for seven years or more. Measure Description: Measures the number of businesses in Redmond that have been in business seven years or more. Importance: Measures Redmond’s ability to attract and retain a vibrant business community; a diversity of established businesses creates local choices and opportunities. Indicator 2: Percentage of Redmond residents either very satisfied or satisfied with the type and variety of employers, restaurants, retail shops and services in Redmond. Measure Description: Surveyed response to satisfaction with the type and variety of employers, restaurants, retail shops, and services in Redmond. Importance: In identifying a vibrant and diverse business community as one of the City’s priorities, Redmond’s residents indicated that convenient access to the types of services and business amenities was important. INTRODUCTION/SUMMARY OF OUTCOMES MAP Offers submitted to the Vibrant Economy priority should support one or more of the outcomes listed below. Outcomes illustrate what contributes to creating a vibrant economy, and the supporting bullet points indicate why each outcome is important. Your work may support any of the outcomes; they are all indispensable in creating a vibrant economy. Outcome 1: A Diverse Range of Industries and Business Clusters Supports long-term economic health and creates resiliency during times of economic downturn 220 ---PAGE BREAK--- Promotes efficiencies in resource procurement, knowledge sharing and talent recruitment Supports both residents and Redmond businesses, they are consumers of each other Business clusters attract workforces within cluster industries, as well as support jobs outside of those industries Outcome 2: A Range of Job Types and Employment Opportunities Helps create a stable community and long-term economic health Attracts a diverse range of skilled and unskilled employment opportunities; every job is important to meet the needs of the community Provides opportunity for career growth and advancement; ladder jobs along developing career paths Creates a positive business atmosphere, which attracts and retains employers Encourages diversity in population: age, background, skill set, experience, education, socioeconomics, etc. Everything you need is here: Local employment opportunities reduce the need to travel outside of Redmond for work Outcome 3: A Retail Environment that Provides the Goods and Services our Community Desires Makes Redmond a retail destination and maximizes tourism investment opportunities Matches the needs of both residents and businesses: ensures the correct variety and number of businesses within industries Provides investment back into local economy, supporting employment and social responsibility Consumers have access to a variety of shopping, dining, entertainment, and other activities—variety includes a good mix of price points within industries for varying consumer budgets Everything you need is here: Convenient access to goods and services makes Redmond a more desirable place to live, work and play. Reduces the need to travel outside of Redmond to spend money OBJECTIVES The following objectives advise offer writers on how the City strives to reach the outcomes listed above. Budget offers can be written to any of these objectives, as well as other objectives not listed, which improve the City’s ability to reach the ultimate outcome of a vibrant economy. WE ARE LOOKING FOR OFFERS THAT: Objective 1: Use the City’s Economic Development Strategy to guide investments and partnerships 221 ---PAGE BREAK--- that increase economic vitality Objective 2: Improve service delivery through the City’s Financial Strategy, and proactive engagement with the business community Objective 3: Utilize planning and programs that support innovation, diversity, and stability of Redmond’s current and future community and business environments Objective 4: Seek business partnerships that support and benefit the community Objective 5: Create and maintain an inviting environment to start and locate a business. Development- related services should be predictable, flexible, and receive a timely response Objective 6: Establish Redmond’s urban centers as a destination for consumers, supporting both the community image and identity Objective 7: Attract businesses, residents and visitors to Redmond by promoting the community as a desirable place to live, work and play Objective 8: Create easy, efficient and effective access to businesses that integrates mobility, infrastructure and parking Objective 9: Continually improve on providing expeditious licensing and permitting to the business community 222 ---PAGE BREAK--- Vibrant Economy A Diverse Range of Industries and Business Clusters Supports long-term economic health and creates resiliency during times of economic downturn Promotes efficiencies in resource procurement, knowledge sharing and talent recruitment Supports both residents and Redmond businesses, they are consumers of each other Business clusters attract workforces within industries, as well as support jobs outside of those industries Everything you need is here: local employment opportunities reduce the need to travel outside of Redmond for work Provides the opportunity for career growth and advancement; ladder jobs along developing career paths Creates a positive business atmosphere, which attracts and retains employers Attracts a diverse range of skilled and unskilled employment opportunities; every job is important to meet the needs of the community Helps to create a stable community and long- term economic health Encourages more diversity in population: age, background, skill set, experience, education, socioeconomics, etc. Everything you need is here: Convenient access to goods and services makes Redmond a more desirable place to live, work and play. Reduces the need to travel outside of Redmond to spend money Matches the needs of both residents and businesses: ensures the correct variety and number of businesses within industries Makes Redmond a retail destination and maximizes tourism investment opportunities Consumers have access to a variety of shopping, dining, entertainment and other activities— Variety includes a good mix of price points within industries for varying consumer budgets Provides investment back into local economy, supporting employment and social responsibility A Range of Job Types and Employment Opportunities A Retail Environment that Provides the Goods and Services our Community Desires I want a diverse and vibrant range of businesses 223 ---PAGE BREAK--- VIBRANT ECONOMY 2019-2020 Offer Summary OFFER ORDER Page # Offer # Offer Name Lead Department 2019-2020 Offer Total 225 000178 Community Development Planning 4,027,069 229 000042 Development Services Planning 15,791,587 234 000052 Microsoft Refresh Planning 8,070,322 Total 27,888,978 OFFER RANKINGS Results Team Ranking Offer # Offer Name Staff Civic Planning 000178 Community Development 1 1 Planning 000042 Development Services 2 2 Planning 000052 Microsoft Refresh 3 3 Lead Department 224 ---PAGE BREAK--- What: The Community Development offer supports shaping the vision for Redmond’s long-term growth, community character and economic vitality. We do this through: strategic community planning; monitoring and analyzing demographic and economic trends; and engaging residents, businesses and visitors in initiatives, programs and partnerships that foster mutual learning, investment and collaboration. Why: A vibrant community is one that anticipates and plans for the future, is adaptable to change and fosters a positive economic climate that supports the evolving needs of its residents and businesses. When strategic plans, regulations, and programs are in place that provide clarity about a community’s desired goals and character, both public and private sector investment decisions are clearer, more focused and effective in achieving the City’s vision. This is reflected in choices people make to locate, live, work or visit in Redmond and their associated demand for real estate, goods and services, increasing both property and retail tax revenues that in turn support investments. Who: Current and prospective residents, employees, businesses, developers, property owners/managers, and visitors. Results: Legend of Service Level Descriptions: None - Service not provided Reactive - Service issues are addressed only as they arise Managed - Use of a planned approach to meeting defined service levels Proactive - Strategic approach with focus on promoting efficient and high-quality services and programs Comprehensive - Integrated approach across multiple business lines to best achieve the City's vision and mission Baseline: This offer provides a Managed level of service for the following: • Strategic planning through annual Comprehensive Plan updates initiated by either the City or requested by the public through the docketing process • Tracking, analysis and reporting on demographics and statistics of Citywide importance • Managing local census participation • Updates to the Transfer of Development Rights program maps • Planning Commission staffing and support for such efforts as zoning code and subarea plan updates • Providing regular, transparent and supportive two-way communication with the community for Comprehensive Plan and Zoning Code updates • Updates to the Redmond Zoning Code and annual development of impact fees for Fire, Parks and Schools • Guiding development of the Capital Investment Plan/Capital Investment Strategy and funding strategies • Preliminary work to prepare for a periodic Comprehensive Plan update, including a Buildable Budgeting by Priorities Budget offer Vibrant Economy Department Name: PLANNING Id: 000178 Community Development 225 ---PAGE BREAK--- Lands Analysis for King County, and Future Land Use projections, preliminary visioning and planning for a 2050 horizon (20 years past the current 2030 planning horizon) • Regional planning and coordination with partners, including Puget Sound Regional Council (PSRC), King County, WA Department of Commerce, Greater Seattle Partners, WA Tech Cities Coalition and neighboring jurisdictions. • Increasing tourism and supporting buying locally with Redmond businesses through Experience Redmond. • Managing the Business License program which works with the business community and oversees the administration of nearly 6,000 licenses annually. This includes providing convenient, predictable and timely business licensing processes to ensure compliance with City codes at the outset of business operations to support and guide navigating the City's business licensing/permitting processes. • Updating the City's six-year-old Economic Development Strategic Plan. The climate has changed dramatically over the past six years. Strategic planning and execution helps support long-term economic health and create resiliency during economic downturns. Demonstrated Efficiencies: Updating the Experience Redmond website has improved customer access and program administration efficiency through enhanced web-based tools. Partnering together with neighboring cities through the Innovation Triangle and 425 Start-up has streamlined small business relocation support. Above Baseline: This offer proposes several new expenses from the last biennium. • Regional Economic Development Partnership Program ($50,000 ongoing) – To provide training, seminars and resources for entrepreneurs and small businesses to grow and Innovation Triangle, which works to market the eastside to potential tech companies. This expense would be paid 100% by the Port of Seattle grant, and matched by the four other participating cities, and would not require additional Redmond funds. (Proactive) • Business License Software ($40,000 one-time) – To purchase new business license software which is required by the State of Washington. The passing of House Bill 2005 in May 2017 requires all WA State cities with a business license program to implement one of two software solutions (Dept. of Revenue’s BLS system or File Local) to provide businesses a single and consistent interface for licensing in the state. The deadline to offer one of these two systems is July 2020, Redmond’s anticipated implementation would be the fourth quarter of 2019. The new software would work in collaboration with our current software. (Managed) • Consultant Services ($400,000 one-time) – For land-use and traffic modeling & simulation, economic analyses, 3D rendering and visualizations to enhance community engagement and outreach supported by City Communications staff to obtain community feedback. (Proactive) Below Baseline: 2% Scalability ($73,307) – Would reduce the dollars identified for consultant services to update the Economic Development Strategic Plan. This would reduce our ability to be Proactive with our economic development efforts and change the future level of service to Reactive. In addition, reducing discretionary spending on office supplies, printing, travel, training and storage costs. General office functions would be greatly impacted due to these reductions. Articles being Budgeting by Priorities Budget offer Vibrant Economy Department Name: PLANNING Id: 000178 Community Development 226 ---PAGE BREAK--- stored with archival or historical value would need to be moved. 3% Scalability ($109,961) – Would further reduce the dollars identified for consultant services and studies that progress the City's economic development efforts. This level of reduction would eliminate the study described in the 2% scalability and changes the level of service to Reactive. Eliminate Planning Commission recording secretary costs ($13,000) and reduce other professional services which would affect customer service response times. 5% Scalability ($183,268) – Would include the previously identified 3% plus an additional $73,307. This equates to 95% of the City's buy local marketing program, which provides marketing support to the City’s small businesses as well as construction mitigation efforts. Buy local programs increase sales tax, reduce traffic congestion and improve business relations, all of which would be negatively impacted by eliminating this program. Reduce professional and legal services, moving levels of service from Managed to Reactive. Budget Changes: • Funded ongoing Regional Economic Development Partnership Program funded by a Port of Seattle grant ($50,000) • Funded one-time Business License software ($40,000) • Unfunded a portion of credit card payment related bank fees ($63,000) FTE Year1 FTE Year2 FTEs 7.20 7.20 Expenditure summary Year 1 Year 2 Total Ongoing-Sal/Ben $1,053,427.28 $1,093,147.09 $2,146,574.37 Ongoing-Others $900,623.00 $939,872.00 $1,840,495.00 One-Time-Others $40,000.00 $0.00 $40,000.00 Total $1,994,050.28 $2,033,019.09 $4,027,069.37 Budget Offer Summary Budgeting by Priorities Budget offer Vibrant Economy Department Name: PLANNING Id: 000178 Community Development 227 ---PAGE BREAK--- Community Development Offer 000178 Redmond creates a retail environment that provides the goods and services our community desires and provides a range of job types and employment opportunities Measure: Percentage of Redmond residents either very satisfied or satisfied with the type and variety of employers, restaurants, retail shops and services in Redmond Measure: The number of active businesses in Redmond that have held a business licensed for seven years or more Redmond’s growth is focused in urban centers consistent with the City’s vision Measure: Proportion of growth occurring within urban centers Redmond provides collaborative and supportive processes, programs and partnerships Measure: Number of community planning engagement opportunities Residents have access to housing, employment and goods and services Measure: Jobs to housing ratio Measure: Number of total jobs in Redmond So that So that So that Performance Measure Actual Target 2015 2016 2017 2018 2019 2020 Number of community planning engagement opportunities N/A N/A N/A 3 6 10 Proportion of growth occurring within urban centers 93% 100% 100% 99% 99% 99% Jobs to Housing Ratio 2.35 2.31 TBD 2.29 2.28 2.27 Number of total jobs in Redmond 87,272 N/A 83,083 Yr over Yr increase Yr over Yr increase Yr over Yr increase Percentage of Redmond residents either very satisfied or satisfied with the type and variety of employers, restaurants, retail shops and services in Redmond 87% 86% 86% 87% 88% 89% The number of active businesses in Redmond that have held a business licensed for seven years or more 1,472 1,501 1,283 Yr over Yr increase Yr over Yr increase Yr over Yr increase 228 ---PAGE BREAK--- What: Development Services encompasses the Development Services Center (DSC) and the Right- of-Way (ROW) Management program. The DSC is composed of land use, engineering, building and fire staff who review land use and building permits and assist residents, businesses and the building community with a variety of development and building services. These include review and issuance of permits; compliance with cultural resource standards; responding to property-related questions; and providing information for the community related to development projects. ROW is responsible for work within City right-of-way including managing franchise agreements with utility companies; permitting; and inspecting work by utility companies, developers, homeowners and others within the ROW. The DSC enables one-stop services for all aspects of the development process including the management of the Design Review Board and implementation of design standards. Why: As a facilitator and not just a regulator, DSC and ROW staff recognize that excellent customer service is an important element in fostering a strong business/government relationship by providing predictability throughout the permitting process. The DSC implements the City’s long range vision by ensuring that projects meet applicable standards and codes as well as working with applicants to design and build high-quality development projects and infrastructure. Results include the variety of new business and housing options that are currently available in the City, directly supporting a range of job types and employment opportunities and a retail environment that provides the goods and services our community and residents desire. ROW staff facilitates franchise utility availability and ensures that work is done in a safe, compliant and accessible manner. Providing timely and accurate information supports the community’s vision of preserving single- family neighborhoods and focuses growth and development into Redmond’s urban centers; protects the environment and supports the City's Climate Action Plan and advances Redmond's economic vitality. The value of construction is directly related to permitting fees collected. In addition, the property tax base resulting from the increase in assessed values reflects the community’s asset wealth. It also promotes the City, with safely designed and constructed buildings and infrastructure, as a positive place to live and do business. Who: Our customers are the people who live, work and play in the City of Redmond. Specifically, all the residents, developers, designers, contractors, visitors, workers, franchise utilities and business owners. The DSC staff also serve other internal City divisions and departments including Parks, Long Range Planning, Public Works, Natural Resources, Business Licensing/Customer Service and Fire Operation. Results: Legend of Service Level Descriptions: None - Service not provided Reactive - Service issues are addressed only as they arise Managed - Use of a planned approach to meeting defined service levels Proactive - Strategic approach with focus on promoting efficient and high-quality services and programs Comprehensive - Integrated approach across multiple business lines to best achieve the City's vision and mission Budgeting by Priorities Budget offer Vibrant Economy Department Name: PLANNING Id: 000042 Development Services 229 ---PAGE BREAK--- Baseline: The DSC processes 159 different types of permits, each unique and necessary to a specific purpose. In 2017, there were a total of 9,163 entitlement, engineering, building, right-of-way and fire permits issued. Compared to 2016, permit activity was up by 19.9% in 2017. This translates to an increase in construction value (the value of the built structures) of $122.1 million in 2017. Due to the high volume of permits DSC processes each year, this offer focuses on the importance of ensuring a predictable, transparent and timely permitting process. In 2017-2018, staff continued an ongoing effort to create new processes making Lean process improvements and implementing them through this budget cycle, developing new processes and tools to increase efficiencies in areas such as Remote Permit Submittal (PRO); Impact Fee Lean; PREP Lean Process; Residential Infill Lot Lean (SFEL); Engineer deviation process; and Residential Planning Counter Review. We anticipate the level of development activity to remain high through the 2019-2020 biennium. Performance levels are currently Reactive. Performance measures for PREP (pre-application review) projects are only being met 28% of the time (90% is the target) CCR (coordinated civil review) projects are only being met 37% of the time (90% is the target). These performance measures have not been met due to the complexity of project submittals and the increase in permit activity. Fire and Building reviews are being met 91.5% of the time (90% is the target). ROW is currently providing a Managed level of service. Above Baseline: Several one-time budget increases totaling $478,659 and ongoing increases of $480,808 are proposed to support increased efficiencies: • EnerGov Consultant ($76,000 one-time) – Workflows need to be updated by an EnerGov consultant which will result in increased staff data accuracy and timeliness. • Bluebeam Studio Prime ($20,000 one-time) – Bluebeam Studio Prime to be added for the continued implementation of EnerGov. This will be required to maintain electronic plan review. • Administrative Assistant ($95,959 one-time) – A limited duration Administrative Assistant for one year would be needed to file and scan documents that can be made electronic and recycle files no longer needed. This need was recognized in phase three of the Building/Fire Department Records Retention Lean effort. • Iron Mountain ($11,500 one-time) – Request for a one-year limited duration Administrative Assistant to retrieve files currently stored at Iron Mountain and organize/inventory/purge unnecessary documents in response to increased public requests. • Legal, Training and Credit Card Fees ($157,160 ongoing) – Due to the increased complexity of projects and more public comments to respond to, the requested funding for legal services has increased by $14,960. To provide training for certification and licenses for staff, training/travel has been increased by $25,200. Credit card bank service fees have increased by $117,000. In previous budget cycles funding for this has been shifted to cover the shortfall. • Assessment of the EnerGov Land Management System and Business Processes ($250,000 one-time) – EnerGov is the main application used in the Development Services Center (DSC) for all Permit and Planning purposes. This proposal will fund an evaluation of the system and business processes to understand how to better leverage the technology to further improve Budgeting by Priorities Budget offer Vibrant Economy Department Name: PLANNING Id: 000042 Development Services 230 ---PAGE BREAK--- customer service Below Baseline: Developers will experience delays in permitting which will impact their construction financing (each day of delay results in an estimated cost of $3,000 per day for residential, $12,000- $15,000 for commercial). This would make Redmond less desirable to the business community and may prompt developers to build in other communities instead of Redmond. Homeowners and businesses seeking tenant or home improvements will also be impacted by delays, leading to decreased satisfaction with City services. 2% Scalability ($305,883) – This reduction would require the elimination of 0.50 FTE Senior Planner, reduction of five hours a week for a Fire Administrative Assistant and elimination of consultant expenditures (stormwater review), compounding our current Reactive state. Staff would need to pick up the duties previously done by these positions and by consultant work. A loss of staff review time of this magnitude due to workload reallocation will result in plan review times increasing turning performance from Managed to Reactive within this two-year budget time. 3% Scalability ($458,824) – In addition to 2% reductions, an additional 2.5 hours a week schedule reduction for Fire Administrative Assistant and elimination of 1.20 FTE’s (0.70 ROW and 0.50 Building Administrative Assistant) would be necessary. Review staff would need to cover their work, negatively impacting performance service levels, Public Record Request response and plan review turnaround times. A reduction of development review staff will result in an increase in plan review times further lengthening the time customers spend in the plan review process. A reduction in ROW staff will move this program from managed to reactive. 5% Scalability ($764,707) – In addition to 3% reductions, an additional 2.25 FTEs (1.00 Plans Examiner, 1.00 Planner-Assistant, 0.25 Fire Administrative Assistant) would be eliminated. Assuming current permit levels stay steady a reduction of approximately 120 to 160 hours per week of staff time available to perform project review would have a substantial negative impact on performance service levels, public records request responses, permit review turnaround times and DSC's ability to support other City departments on code development and capital projects. Given the increase in permit activity, the loss of 3.75 FTEs within the Development Service Center would have a significant effect on our ability to meet performance measures and turnaround times, resulting in doubling or tripling the duration time it takes to review a permit. This would have negative impacts to our customers, increasing their costs associated with construction loans and extending their project completion dates. Cuts in service of this magnitude would result in less development and business growth as businesses would look to surrounding cities for space to lease where tenant improvement permits would be more easily obtained. Budget Changes: • Funded ongoing legal expenses ($14,960) • Funded ongoing training and travel ($25,200) • Funded ongoing credit card payment related bank fees ($117,000) • Unfunded supplemental salaries for the Right of Way Program ($4,800) • Unfunded a portion of office supplies for the Right of Way Program ($500) • Unfunded small tools for the Right of Way Program ($1,920) • Unfunded a portion of professional services for the Right of Way Program ($2,000) Budgeting by Priorities Budget offer Vibrant Economy Department Name: PLANNING Id: 000042 Development Services 231 ---PAGE BREAK--- FTE Year1 FTE Year2 FTEs 48.03 48.03 Expenditure summary Year 1 Year 2 Total Ongoing-Sal/Ben $6,368,620.75 $6,488,297.04 $12,856,917.79 Ongoing-Others $1,462,454.79 $1,472,214.29 $2,934,669.08 Total $7,831,075.54 $7,960,511.33 $15,791,586.87 Budget Offer Summary Budgeting by Priorities Budget offer Vibrant Economy Department Name: PLANNING Id: 000042 Development Services 232 ---PAGE BREAK--- Development Services Offer 000042 The City has a diverse range of industries and business clusters Measure: Percentage of Redmond residents either very satisfied or satisfied with the type and variety of employers, restaurants, retail shops and services in Redmond The applicant is able to successfully submit a complete application Measure: Percentage of civil drawing reviews completed within two plan review cycles Customer receives a clear and predictable road map to permit approval Measure: Percentage of projects using the Pre-Review Entitlement Process (PREP) that are completed within 30 days The review of permits can be completed in a predictable and timely manner Measure: Percentage of Building and Fire plan reviews completed within established time frames Measure: Percentage of permits and plan cases voided due to data entry errors So that So that So that Performance Measure Target 2016 2018 2020 Performance Measure Actual Target 2015 2016 2017 2018 2019 2020 Percentage of projects using the Pre-Review Entitlement Process (PREP) are completed within 30 days 28% 18% 57% 90% 70% 70% Percentage of civil drawing reviews completed within two plan review cycles 23% 33% 41% 90% 70% 70% Percentage of Building and Fire plan reviews completed within established time frames 76% 78% 91% 90% 90% 90% Percentage of permits and plan cases voided due to data entry errors N/A 1% 1% 1% 1% Percentage of Redmond residents either very satisfied or satisfied with the type and variety of employers, restaurants, retail shops and services in Redmond 87% 86% 86% 87% 88% 89% 233 ---PAGE BREAK--- What: The Microsoft Refresh is a multi-year project to reimagine the Microsoft campus through a multibillion-dollar investment at its site in Redmond’s Overlake neighborhood. To meet Microsoft’s timeline for completion of the project, the City of Redmond and Microsoft will enter into a Memorandum of Understanding (MOU) through which Microsoft will fund twenty-two additional City of Redmond employees. The additional City personnel will be dedicated solely to facilitating the Microsoft Refresh. The twenty-two positions will be limited duration status until completion of Microsoft Refresh. As part of the MOU, all ongoing, startup and overhead costs associated with impacts have been calculated and identified in the development agreement and MOU. City of Redmond staff will carry out all assignments associated with site plan entitlement, plan review, permitting, inspections and communications for the Microsoft Refresh project. Why: Excellent customer service and predictability throughout site plan entitlement, plan review, permit applications and inspections are central elements for fostering strong relationships between businesses, residents and governments. Providing timely and accurate information along with predictability during this process meets the City’s vision, promotes Redmond’s vibrant economy and makes Redmond a positive place to live, work and conduct business. The Microsoft Refresh includes demolition of 12 existing buildings; construction of 17 new buildings; 3.1 million square feet of renovated workspace; transportation infrastructure improvements; and additional public spaces, sports fields and green space. With the City’s current staffing levels, the Microsoft Refresh cannot be completed within Microsoft’s time frame without impacting and reducing development services and inspections for all other City of Redmond customers. To address this issue, Microsoft will fund 22 City of Redmond employees who will be dedicated solely to facilitating the Microsoft Refresh. By doing so, Redmond will be able to maintain its excellent customer service, equity and outstanding service levels for all residential and business application submittals, while also fulfilling its contractual obligation for completion of the project within the timeframe prescribed in the MOU. This project will benefit the broader Redmond community in many ways. Microsoft, along with contractors and vendors supporting Microsoft, provide a strong, diverse and stable employment base for Redmond’s residents. According to a 2008 University of Washington study “The Microsoft Economic Impact Study”, Microsoft’s “employment multiplier” was 6.81, meaning that each employee at Microsoft supports 5.81 additional jobs. This increases access to a broader array of goods and services for our entire community, Further, that same study estimated that the company generated $7 billion in worker compensation at that time. Who: The agreement will serve the Microsoft Corporation, their employees, their shareholders and their consumers. Both current and new employees who live and/or work in Redmond will add to a vibrant and diverse community by supporting other Redmond businesses. Results: Legend of Service Level Descriptions: None - Service not provided Reactive - Service issues are addressed only as they arise Managed - Use of a planned approach to meeting defined service levels Budgeting by Priorities Budget offer Vibrant Economy Department Name: PLANNING Id: 000052 Microsoft Refresh 234 ---PAGE BREAK--- Proactive - Strategic approach with focus on promoting efficient and high-quality services and programs Comprehensive - Integrated approach across multiple business lines to best achieve the City's vision and mission Baseline: The baseline does not exist because this is a new offer. Above Baseline: Services provided by this MOU are comprehensive given that they touch multiple divisions within the City of Redmond. The newly proposed baseline for the Microsoft Refresh is $8,070,322.04 for the biennium. The offer will support the review of Microsoft’s permit application and inspection of construction work which cannot be accomplished with the City’s current staffing within the time frame desired by Microsoft. As such, Microsoft has requested that the City of Redmond enter into an agreement where Microsoft would contribute to the cost of hiring additional City personnel to review Microsoft’s permit applications and inspect Microsoft’s construction work. Development Services has drafted a staffing agreement that will provide a Proactive approach ensuring that we have the right resources to provide the expected level of service and meet the contractually-prescribed timelines. The MOU will ensure that other City services are not impacted or effect the review timelines of other development projects, the intent is to have a dedicated staff that will meet the contractual obligations and ensures that development both commercial and residential are not impacted or delayed. Below Baseline: As this is a new MOU, the entire offer is in above baseline and not subject to scalability. 2% Scalability – None 3% Scalability – None 5% Scalability – None Budget Changes: No changes to the baseline budget FTE Year1 FTE Year2 FTEs 22.00 22.00 Expenditure summary Year 1 Year 2 Total One-Time-Sal/Ben $3,451,204.57 $3,872,978.47 $7,324,183.04 One-Time-Others $385,523.00 $360,616.00 $746,139.00 Total $3,836,727.57 $4,233,594.47 $8,070,322.04 Budget Offer Summary Budgeting by Priorities Budget offer Vibrant Economy Department Name: PLANNING Id: 000052 Microsoft Refresh 235 ---PAGE BREAK--- Microsoft Refresh Offer 000052 Businesses in Redmond offer a range of job types and employment opportunities Measure: Percentage of Redmond residents either very satisfied or satisfied with the type and variety of employers, restaurants, retail shops and services in Redmond Efficient and effective development review and inspection services promote understanding and accountability Measure: Percentage of staff hired consistent with the contract schedule Buildings, streets, utilities and other elements of the Microsoft Refresh are completed safely and responsibly Measure: Percentage of development review and inspections that are conducted consistent with the contract schedule So that So that Performance Measure Actual Target 2015 2016 2017 2018 2019 2020 Percentage of staff hired consistent with the contract schedule N/A N/A N/A 85% 100% 100% Percentage of development review and inspections that are conducted consistent with the contract schedule N/A N/A N/A 100% 100% 100% Percentage of Redmond residents either very satisfied or satisfied with the type and variety of employers, restaurants, retail shops and services in Redmond 87% 86% 86% 87% 88% 89% 236 ---PAGE BREAK---