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HomeMy WebLinkAboutCOW 2005-04-25 Item 4E - Review - Financial Policies Co UNCIL AGENDA SYNOPSIS ..........q I Initials ITEM NO 0 1 N p Meeting Date Prepared by 1 Mayor' iew I Coupei dviel� I E �i VI 04/25/05 KAF 1 I C 1 1 1 r s 0a ITEM INFORMATION CAS NUMBER: 05-072 ORIGINAL AGENDA DATE: 04/25/05 AGENDA ITEM TITLE Review Financial Policy Decision Tree CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 04/25/05 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PIS SPONSOR'S Attached for review and discussion with the Committee of the Whole is a decision tree that SUMMARY has been reviewed with the Finance and Safety Committee. This tool is being utilized to develop a policy framework for the Tukwila South Development Proposal. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DA'IE: 04/18/05 RECOMMENDATIONS: SPONSOR /ADMIN. COMMri r E Review and seek input of the Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED So So So Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 04/25/05 1 MTG. DATE ATTACHMENTS 04/25/05 Finance Director Memo dated April 19, 2005 Decision Tree Document- Tukwila South Fiscal Policy Finance Safety Committee minutes dated 4/18/05 City of Tukwila 6200 Southcenter Boulevard. Tukwila, Washington 98188 Steven M. Mullet, Mayor Committee of the Whole Il- From: Kevin A, Fuhrer, Finance Director Date: April 19, 2005 Subject: Financial Policies Development Update One of the 2005 goals for the Finance Department is to develop a series of draft financial policies. Over the span of the last several months, the Finance and Safety Committee has been developing/reviewing draft financial policies. The broad areas under review include the topics of debt, the financial planning model, and general financial policies. On Monday, April 18, the committee met to begin initial policy development relative to the Tukwila South Development Proposal. A decision tree process was employed with the underlying objective of identifying a framework upon which a draft policy may be formulated, Given the magnitude of the proposed project, it is the desire of the committee to share and discuss the decision tree with the Committee of the Wh~le and to seek your input. I have attached the decision tree document for your review. I look forward to reviewing this information with you on Monday, April 25. Phone: 206-433-1800 · City Hall Fax: 206-433-1833 · www.ci.tukwila.wa.us Decision Tree - Tukwila South Fiscal Policy Finance and Safety Committee April 18,2005 Present: Dennis Robertson, Chair; Pam Carter, Dave Fenton Kevin Fuhrer, Rhonda Berry, Derek Speck, Nick Olivas, Pat Brodin, Jim Morrow, Jane Cantu, Steve Lancaster, Lisa Verner, Lucy Lauterbach; Sue Carlson-La Pianta 1. Kev Card Access Public Works is working toward a more secure entry system for City Hall and the 6300 building. They asked for bids for access controls for the two buildings. The lowest bid came from Customer Security Systems with a bid of$83,883.10. A new system will be able to track who enters which building at what time, and offers customizable automatic door locking. The bid will allow the city to create identity cards for employees. When an employee leaves, hislher acc,ess will be removed from the system. The $84,000 bid includes keying all interior doors in the two buildings, and it's possible those all won't need to be on the system. It was easier to include them now and take them off later than to add them to a lower priced contract. Dave asked.ifMary Miotke has been involved, and Pat said she was. Pam asked abou~ emergency access by police or fire. Jim said that it will work very similarly to the way it is now. He also said if the power goes out there is back up battery power that will be activated. The main doors to the two buildings will be open during business hours. Funding for the project is in the 303 budget. Recommend contract with Custom Security Systems for $83,883,10 to COW and Re2ular Meetin2s. . . , \It 2. Financial Policies Kevin had prepared a new draft of the financial policies based on l' comments from the last meeting when the topic was discussed. The committee went through the policies, and suggested some editing changes. There was a lively discussion about procedures for expenditures for both CIP and for other purposes. Policy OF 5 was amended to apply to non-CIP grants, where grant applications will be reported to the appropriate committee. In the main body of the policies a section on Capital Expenditures had a split among the three members. The controversial issue related to capital grants with local matching requirements, and how much Council approval was needed before application for those grants, Pam C noted the current CIP policy is for staff to get committee approval with a report to Council before application for the grant, with Council approval for the grant to be accepted. The draft in the financial policies said those grant applications should get Council approval. Another provision was to have capital improvement proj ects of "limited benefit" to be paid by the developer. Committee members wanted to be sure that meant projects like Cascade View surface water project and the Allentown/Foster Point projects were still allowed with the new policy. Reschedule draft policies. 3. Tukwila Vallev South Fundin2 Kevin provided a color-coded decision tree for funding options for TVS, The first decision about whether to participate in the TVS proj ect was affirmative from all three members. The second issue was whether the city should issue bonds, and if so at what level. Kevin said he had talked to bond underwriters who told him that a city should only bond about 750/0 of their capacity. Though they can bond more, it could have an impact on their bond rating. Considering Tukwila's bonding capacity (including $26 m. in