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HomeMy WebLinkAbout2009-10-06 Finance and Safety MinutesCity of Tukwila Finance and Safety Committee FINANCE AND SAFETY COMMITTEE Meeting Minutes October 6, 2009 5: 00 p. m.; Conference Room #3 PRESENT Councilmembers: Pam Linder, Chair; Joe Duffle and De'Sean Quinn Staff: Shawn Hunstock, Bob Giberson, Nick Olivas, Mary Miotke, Bruce Fletcher and Kimberly Matej Guests: Chuck Parrish CALL TO ORDER: Chair Linder called the meeting to order at 5:03 p.m. Due to time constraints (a Council Shoreline Master Program Work Session beginning at 6:00 p.m.), agenda items were discussed in an order dierent from that presented in the original meeting agenda. Additionally, there was not ample time to discuss all items scheduled. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Resolution Re2ardinR Annual Cancellation for Accounts Receivable, Staff is seeking full Council approval of an annual resolution to cancel (write -off) account receivables deemed uncollectible. This year's annual account receivable write -off totals $185,450.81. A significant amount of this write -off ($183,086.31) is related to the previous golf course concessionaire, Gordon's on the Green, who filed bankruptcy on June 1, 2009. Although the City has filed a claim for reimbursement of the outstanding amount owed, for accounting purposes it is best for the City to cancel this receivable, and consider it uncollectible. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 12 COW. B. Ordinance Establishing Water. Sewer and Surface Water Utilitv taxes Staff is seeking full Council approval of a draft ordinance which establishes a utility tax on the Water, Sewer and Surface Water Funds to pay for the cost of emergency preparedness and potential responses resulting from such. Over the next several weeks, costs for emergency preparedness and responses specifically relating to the conditions of the Howard Hanson Dam are anticipated to cost the City between $2.1 to 2.5 million. Initially, it was believed these costs would be much higher. However, a significant costs saving was recognized when it was identified that flood response equipment will not have to removed and replaced at the beginning and end of each flood season, but can stay in place for up to five years with proper maintenance. Unfortunately, ongoing costs are still unknown. Taxing the City's Water, Sewer and Surface Water Funds will provide the City with sufficient monies to pay for these potentially significant costs and is allowed by state law. Most cities have imposed this type of tax for years. The draft ordinance calls for a 35% Utility Tax on the total gross revenue from each Fund for seven months (October 7, 2009 through April 30, 2010) generating approximately $2 million. The tax will then be reduced to a 10% tax on total gross revenues for a 32 -month period (May 1, 2010 through December 31, 2012), generating approximately $900,000 annually. These Utility Funds will still be self sustaining after the 35% tax. Finance Safety Committee Minutes October 6, 2009 Paae 2 Due to limited meeting time, the Committee did not determine a recommendation in support of or in opposition to the draft ordinance. The item will be forwarded to full Council for discussion. FORWARD TO OCTOBER 12 COW FOR DISCUSSION. C. Contract Amendment for Commercial Development Solutions Administration is seeking full Council approval for a contract amendment for Commercial Development Solutions (Lisa Verner, Tukwila South Project Manager). Earlier this year, Council approved a development agreement for the Tukwila South project. Implementation of the agreement triggered several significant tasks requiring completion. Those tasks include, but are not limited to: establishing an escrow account, initiating the annexation process, grant contract maintenance, development of reference materials, and monitoring and assistance for contractors and City Departments. Due to Commercial Development Solutions in -depth and on -going involvement in the project, as well as efforts to keep the continuity of work moving forward, Administration is requesting Council approval of a contract amendment that will extend the current Commercial Development Solutions contract through December 31, 2010. Additionally, increased project activity has required additional hours from Commercial Development Solutions and based on the previous three billing cycles, Administration recommends increasing the monthly contract rate to $11,000 from $8,000. It is anticipated that billable hours, in relation to this contract, will decrease as the project progresses. As a result of the current economic conditions and the potential effects of Initiative 1033, if passed, Committee Members expressed concern over the length of time for the contract extension. Committee Member Quinn stated that he is not opposed to returning to full Council multiple times for shorter, contract extensions. There was not unanimous Committee approval to recommend extending the contract through December 31, 2010. The Committee would like to discuss this item further after the results of the November 3 General Election, however, it was unclear when the current contract with Commercial Development Solutions expires. In the event the expiration is October 31, 2009, the Committee recommended extending the contract through November and returning to Committee meeting in November to discuss the contract extension. DETERMINE CONTRACT EXPIRATION. RETURN TO COMMITTEE OR FORWARD TO COW BASED ON CONTRACT EXPIRATION. D. Authorization to Transfer Funds for Additional 2009 Budset Reductions Limited meeting time, unable to discuss item. E. Sales Tax Report Limited meeting time, unable to discuss item. III. MISCELLANEOUS Meeting adjourned at 6:00 p.m. Next meeting: Tuesday, October 20, 2009 5:00 p.m. Conference Room #3 C Committee Chair Approval Minutes by KAM.