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HomeMy WebLinkAbout2015-07-07 Finance and Safety MinutesCity of Tukwila • Finance and Safety Committee FINANCE AND SAFETY COMMITTEE Meeting Minutes July 7, 2015 — 5:30 p.m.; Hazelnut Conference Room PRESENT Councilmembers: De'Sean Quinn, Acting Chair; Joe Duffie, Kate Kruller (Absent: Kathy Hougardy) Staff: Peggy McCarthy, Rick Mitchell, Adam Balcom, Bob Giberson, Chris Flores, Laurel Humphrey CALL TO ORDER: Acting Chair Quinn called the meeting to order at 5:30 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Interlocal Agreement: Mobile ID Fingerprint Device The Police Department is seeking Council approval of an interlocal agreement with King County for the use of portable mobile ID fingerprint devices. King County Automated Fingerprint Identification System (AFIS) is a voter - approved regional provider of fingerprint identification services relied upon in the County criminal justice system. The portable MobilelD device is a new tool used by street officers to identify suspects more efficiently. Tukwila police have pilot tested two MobilelD devices since January 2014 and are very pleased with the results. This agreement outlines the terms under which AFIS devices will be used and maintained in Tukwila, and the MobilelD devices are provided by the County free of charge under these terms. Training is also provided. The Committee requested that the informational memo be revised to include more detail regarding the levy and its timeline as well as any pertinent changes to the draft ILA. UNANIMOUS APPROVAL. FORWARD TO JULY 13, 2015 COMMITTEE OF THE WHOLE. B. Purchase of Thermal Imaging Cameras for Fire Department The Fire Department is seeking Council approval to purchase 11 thermal imaging cameras for a total cost of $62,578.10. All existing cameras are scheduled to be replaced in 2015 and $72,000.00 was included in the 2015 -2016 department budget already approved by the Council. Since the budget was adopted a team was convened to research and make a recommendation on the specific model to be purchased. The Committee requested a photo of the unit be included in the packet for full Council review. UNANIMOUS APPROVAL. FORWARD TO JULY 20, 2015 REGULAR CONSENT AGENDA. C. Lease Extension: Record Storage Facility Lease Staff is seeking Council approval of a one -year extension to the Record Storage Facility lease agreement (No. 09 -083) with the Sabey Corporation, expiring May 31, 2016 with optional extensions thereafter. This lease agreement is for 6,392 square feet of safe, secure and humidity controlled storage of City Clerk and Police Department records. Annual increases to the rent were built into the base lease, and the rent of $5,880.04 for the extended year is reasonable based on the previous rent schedule. UNANIMOUS APPROVAL. FORWARD TO JULY 20, 2015 REGULAR CONSENT AGENDA. Finance & Safety Committee Minutes July 7, 2015 - Pape 2 D. Resolution: Financial Reserve Policy Staff is seeking Council approval of a resolution that would revise the City's Financial Reserve Policy in three specific areas. Those revisions and the Committee's discussion is summarized below. A clean copy of the proposed resolution was distributed to the Committee. 1. Change the General Fund minimum balance from 10% to 18 %. Staff considers this increased level of reserves to be prudent based on the City's experience with previous revenue shortfalls, such as those experienced in the Great Recession and the state's adoption of the destination based sales tax. The proposed 18% reserve requirement and the existing 10% contingency fund requirement would commit 28 %, or approximately $15.4 million to reserves. Draw down of the minimum balance could occur only by Council resolution. The Committee agreed with this proposal. 2. Establish a Special Project Reserve based on 10% of one -time revenues. This proposal is to ensure a portion of one -time revenue windfalls is saved for special one -time expenditures, and the reserve would be funded by allocating 10% of one -time revenues to the reserve each year. Use of this reserve could occur only by Council resolution. The Committee spoke in favor of a work session in which Council would establish the criteria for special projects in this scenario. As written, it is undefined and they felt it would be important to clarify this as soon as possible. The Committee asked that staff return with examples from the Mayor of applicable special projects as well as from other jurisdictions with a similar policy. They also requested an analysis of impacts to the 2015 -2016 budget, considering one -time revenues have already been appropriated. The Committee made no recommendation pending the additional information requested. 3. Change the self - insured healthcare reserve minimums from 2.5 times the IBNR (incurred but not reported) to 1.5 %. This is a housekeeping revision that will conform the City's policy to actual practice and recommendation from the actuary and healthcare broker. The Committee agreed with this proposal. Staff requested clarification on when to schedule further discussion on this item. The Committee requested that staff make a determination on when the additional information can reasonably be gathered and this will inform whether the item will move on to the Committee of the Whole or return to Finance and Safety. The potential for a work session as noted above will also be discussed at that time. NO RECOMMENDATION PENDING ADDITIONAL INFORMATION DESCRIBED IN ITEM 2 ABOVE. E. 2015 1 sc Quarter Sales Tax and Miscellaneous Revenue Report Staff presented the 2015 1st Quarter Sales Tax and Miscellaneous Revenue Report. Information detailed in the staff report includes retail sales tax, gambling tax, and admissions tax revenues, with sales tax broken out by industry classifications. Total sales tax collections for the 1 st quarter were $546,000, or 16 %, above those for the same period last year. There was an increase in construction sales tax of $123,000 over the same quarter last year, or up by 84 %, and an increase in sales tax from other industries of $423,000, or 13 %. The City collected $284,506 in sales tax mitigation as of March 31. Councilmember Quinn noted that a future presentation from Economic Development staff on industry trends would be useful for the Council. INFORMATION ONLY. Finance & Safety Committee Minutes July 7, 2015 - Page 3 III. MISCELLANEOUS Meeting adjourned at 7:03 p.m. Next meeting: Tuesday, July 21, 2015 — 5:30 p.m. — Hazelnut Conference Room AtIL Committee Chair Approval Minutes by LH