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Home My WebLink About2014-08-19 Finance and Safety Minutes City of Tukwila Finance and Safety Committee FINANCE AND SAFETY COMMITTEE Meeting Minutes August 19 , 201 4 5: 30 p.m .; Hazelnut Conference Room PRESENT Councilmembers: Verna Seal , Chair ; Joe Duffie, Kathy Hougardy Staff: Peggy McCarthy, Vicky Carlsen, Derek Speck, Joyce Trantina, Evie Boykan, Darren Hawkins, Kirstin May, Chris Flores, L aurel Humphrey Guest: Martin Turney, Tukwila School District; Nathan Phillips, YMCA; Chuck Parrish, Resident ; Susan Musselman and Mark Ragan, Public Financial Management C ALL TO ORDER : Committee Chair S e al called t he meeting to order at 5: 3 0 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA Consensus existed to take up several items out of the original Agenda order throughout. A. Afterschool Programming Funding Staff provided a briefing on the current proposal for after school programming previously discussed at the 8/12 Communi ty Affairs and Parks Committee and the 8/18 Regular Meeting. The proposal is to imple ment a hybrid programming model in the three elementary schools this September, capitalizing on the strengths of the YMCA and of the Parks and R ecreation Department. Community Schools Collaboration (CSC) will continue to provide programming at the middle and high school through December 2014, at wh ich time their contract with the City will expire. Grant funding will be pursued to continue that programming and updates will continue to be provided to the Council as needed. The City has contributed at least $ 100,000 to afterschool programming every year since 2009 , and a table showing the history of th is support was distributed to attendees. Under the c urrent proposal, the City will direct its financial contribution of $100,000 to programming at the elementar y schools. At the August 18 regular meeting, the Council expressed its support to continue this financial involvement via a formal motion. This funding will be presented as part of t he 2015 - 2016 budget package to be reviewed and officially adopted later this year. An interlocal agreement relating to the terms of the partnership with YMCA and the Parks Department will be presented to the F i nance and Safe ty Committee as soon as possible; this ILA will include comprehensive detail s on responsibilities and costs . Committee members asked clarifying questions and expressed support for the proposed partnership , citing d ata , success tracking, and sustainability as potential benefits from this approach. Committee members agreed to not forward a recommendation to the Comm ittee of the Whole at this time in light of the mo tion of support already made, and since the formal Budget pr ocess will provide the mecha nism for the Council to approve the funding. The Committee DISCUSSION ONLY. would like to issue a letter of support for the proposal in the meantime. Finance & Safety Committee Minutes August 19, 2014 Page 2 B. Resolution : Adopting a Financing Plan for Urban Renewal Tukwila International Boulevard (TIB) Staff is seeking Council approval of a resolution that would adopt a financing plan for purchase of several properties associated with the Urban Renewal Tukwila I n ternational Boulevard Redevelopment Project. On August 4, t he Council authorized the use of interfund loans to temporarily fina nce these purchases until a financing plan could be developed. The current estimated cost of the project is $6,100,000 while the estimated proceeds from the future sale of the land is $2,250,000 yielding a net estimated cost of $3,850,000. The City and its fina ncial advisor , t he Publ ic Financial Management Group, considered various options and recommend the following: Enter into a $2,250,000 taxable line of credit for acquisition costs estimated to be recoverable through future property sales; funds would be drawn as needed and the line wo uld be paid off upon sale of th e land. Issue $3,8 50,000 20 - year taxable bonds for the estimated net cost to the City. Annual debt service under this plan would approximate $313,000 for 2015 - 2016 and $287,000 for 2018 - 2034. Committee members asked clarifying questions and it was determined that adoption of this plan UNANIMOUS does include flexibility if the Ci ty hypothetically did not sell the properties. APPROVAL . FORWARD TO AUGUST 25 , 2014 COMMITTEE OF THE WHOLE . C. Resolutions: F inancial Policies Staff is seeking Council approval of two resolutions relating to financial policies. The first is a housekeeping effort that would restate Resolution 1586 by removing the policies related to debt and fund balances. Debt policies have been rewritten as a standalone and the fund balance poli cy that is proposed to be removed has already been approved separately in a reserve p olicy ado pted in October 2012. The financial policies remaining will be reviewe d and updated in the future. The second proposed resolution contains the standalone debt policy noted above. The policy outlines the purpose, type, and use of debt; res ponsibilities ; methods of bond sales; refunding procedures; structural elements; credit objective; use of service providers ; and post - issuance UNANIMOUS APPROVAL . FORWARD TO AUGUST 25 , 2014 compliance procedures . COMMITTEE OF THE WHOLE . D. Fire Department S t affing and Overtime As information only, Acting Chief Flores provided an overview of the current conditions and impacts of overtime usage in the Fire Department. Long term vacancies and absences have caused the cost of overtime pay to raise dramatically and well ove r the budgeted amount. In 2013 the budget for Suppression Division overtime was $408,868.00, then increased by $200,000 via a b udget amendment. The a ctual a mount spent on overtime in 2013 was $674,736.36 . Future solutions could include increasi ng the budgeted amount, adding staff, or reducing service. Given that the City is cur rently undergoing an exploratory process to evaluate INFORMATION fire service delivery models, no recommendation is being made at this time. ONLY. E. Fire Department SAFER Grant Acting Chief Flores informed the Committee about the existence of the FEMA SAFER (Staffing for Adequate Fire and Emergency Response) Grant, whic h provides funding intended to increase the number of firefighters at the scene of an emergency incident . The application period for 2014 has not yet been announc ed, but the Fire Department intends to apply for the amount necessary to fund six positions. If awarded, this funding would alleviate the overtime INFORMATION ONLY. costs discussed in the item above. Finance & Safety Committee Minutes August 19, 2014 Page 3 F. Resolution: Cancellation and Reporting of Un claimed Property Staff is seeking Council approval of the annual resolution that would declare the cancellation of abandoned or unclaimed property that is owed to individuals or business owners in time for reporting to the Washington State Department of Revenue Unclaimed P roperty Section by November 1, 201 4 claims and payroll checks in the total amount of $1, 547.45 . The City has performed due diligence i n notifying the property owners and checks were issued to those who were UNANIMOUS APPROVAL . FORWARD TO successfully contacted through that effort. SEPTEMBER 2, 2014 REGULAR CONSENT AGENDA . G. Billing for Motor Vehicle Accident Responses S t aff provided an overview of the City s option to bill for motor vehicle accident response as a revenue source for the City. Cities have the ability to recover costs by charging the at - fault driver s liability insurance for a variety of items, including number of resp onders, type and number of apparatus, tasks performed, tim e spent on scene, and supplies used. Currently the Fire Department only bills to clean up spills of haza rdous materials, averaging just under $500 per incident. Typically under 10% of the accidents responded to b y the Fire Department involve hazardous materials. Preliminary financial analysis indicates that such a program could potentially yield at least $100,000 in revenue for the City. If the C i ty chooses to pursue this in the future, numerous details regarding billing and coll ection logi stics will need to be reviewed. INFORMATION ONLY. III. MISCELLANEOUS Committee Chair Seal mentioned public comments made at the August 18, 2014 Regular Meeting regarding cuts to public health in the proposed King County budget. The Council may express its concern formally in the form of a letter or meeting with legislators once further details become known. Meeting adjourned at 7:04 p.m . Next meeting: Tuesday, September 3 , 2014 5:30 p.m. Hazelnut Conference Room Committee Chair Approval Minutes by LH