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Home My WebLink AboutCOW 2017-04-24 Item 4B - Ordinance - Unbudgeted Equipment or Fixed Asset Items CO UNCIL AGENDA SYNOPSIS ---------------------------------Initials-------------------------------- ITEM NO. Meetin Date Pre ared b Ma or's revi Council review 04/24/17 Peggy 05/01/17 Peggy 4. B. ITEM INFORMATION STAFF SPONSOR: PEGGY MCCARTHY ORIGINAL AGENDA DA'rE: 4/24/17 AGENDA ITEM Trmj- Remove section 3.32.040 "Unbudgeted Equipment or Fixed Assets"from the Tukwila Municipal Code (TMC) and repeal Ordinance No. 2245. CATEGORY ® Discussion ❑Motion ❑ Resolution ® Ordinance ❑ BidAward ❑ Public Hearing ❑ Other Mtg Date 4124117 Mtg Date Mtg Date Mtg Date 511117 Mtg Date Mtg Date Mtg Date SPONSOR ❑Council ❑Mayor ❑HR ❑DCD ®Finance ❑Fire ❑TS ❑P&R ❑Polic•e ❑PIYW ❑Court SPONSOR'S Remove section 3.32.040 "Unbudgeted Equipment or Fixed Assets"from the Tukwila SUMMARY Municipal Code (TMC) and repeal Ordinance No. 2245. This will help streamline the purchasing process for unbudgeted fixed assets between $5,000 and $39,999.99 REVIEWED BY ❑ C.O.W. Mtg. ❑ CDN Comm ® Finance Comm. ❑ Public Safety Comm. ❑Trans&Infrastructure ❑Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 4/18/17 COMMITTEE CHAIR: SEAL RECOMMENDATIONS: SPONSOR/ADMIN. Finance CoMM1i°rrE Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXP] NDrrURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 4/24/17 MTG. DATE ATTACHMENTS 4/24/17 Informational Memorandum dated 4/12/17 Ordinance in Draft Form Copy of Ordinance No. 2245 2014-2017 Unbudgeted Fixed Asset &Capital Purchases sent to Committees Minutes from the Finance Committee meeting of 4/18117 5/1/17 25 26 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Allan Ekberg Finance Committee FROM: Peggy McCarthy, Finance Director BY: Craig Zellerhoff, Fiscal Coordinator DATE: April 12, 2017 SUBJECT: Update Tukwila Municipal Code by removing section 3.32.040 "Unbudgeted Equipment or Fixed Assets" ISSUE Streamline purchasing practices by removing section 3.32.040 "Unbudgeted Equipment or Fixed Assets"from the Tukwila Municipal Code (TMC) and repealing Ordinance No. 2245. BACKGROUND Council control over procurement. Fixed Assets. In November 1997, City Council adopted Ordinance No. 1817 establishing Chapter 3.32, Budget Provisions, which included section 3.32.040 "Unbudgeted Equipment or Fixed Assets". TMC 3.32.040 requires the approval of the Mayor and three affirmative votes of the respective Council Committee to approve the purchase of unbudgeted capital equipment or fixed assets, including components or services of items related to capital equipment or fixed assets. Fixed asset items were defined as costing at least $1,000 and having a useful life of at least two years. Ordinance No. 2010, adopted in December 2002, changed the minimum limit for capital equipment from $1,000 to$5,000. Other Goods and Services. TMC section 3.32.030 "Bids" requires Council approval of all purchases $40 thousand and above. DISCUSSION It is the City's responsibility to utilize taxpayers' dollars in the most effective and efficient way possible while adhering to applicable laws and regulations. Council has established a $40,000 mayoral approval limit for the procurement of goods and services. Council approval is required for all purchases of goods and services $40,000 and above. The process of obtaining Council approval for the purchase of the unbudgeted fixed assets between $5,000 and $40,000 takes Council and staff time and in an effort to streamline practices in accordance with LEAN principles, it is recommended that section 3.32.040 "Unbudgeted Equipment or Fixed Assets" be removed from the TMC and the remaining TMC 3.32.030"Bids"serve as Council control over procurement of all goods and services, including unbudgeted fixed assets. RECOMMENDATION Council is being asked to approve the Ordinance to amend Ordinance No. 2245 by removing section 3.32.040 "Unbudgeted Equipment or Fixed Assets". This item is scheduled for the April 24, 2017 Committee of the Whole, and the May 1, 2017 Regular Council Meeting. ATTACHMENTS Ordinance to repeal Ordinance No. 2245. Copy of Ordinance No. 2245 27 28 @OUT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING ORDINANCE NO. 2245 §1 (PART), AS CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 3.32.040, "UNBUDGETED EQUIPMENT OR FIXED ASSET ITEMS"; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the process for unbudgeted equipment or fixed asset items was originally adopted in 2002, and the City routinely reviews processes and procedures to validate their effectiveness; and WHEREAS, it is the City's standard operating procedure to ensure spending does not exceed the approved final budget, and eliminating this section of the code will streamline processes for greater efficiency; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Repealer. Ordinance No. 2245§1 (part), as codified at Tukwila Municipal Code (TMC) Section 3.32.040, "Unbudgeted Equipment or Fixed Asset Items," is hereby repealed, thereby eliminating TMC Section 3.32.040. Section 2. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. W:Word Processing\Ordinances\Repeal ordinances relating to TMC 3.32.040 4-12-17 Cz:bjs Page 1 of 2 29 Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 12017. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Allan Ekberg, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Rachel B. Turpin, City Attorney Ordinance Number: W:Word Processing\Ordinances\Repeal ordinances relating to TMC 3.32.040 4-12-17 Cz:bjs Page 2 of 2 30 . ,,- soa City of Tukwila Washington Ordinance No. � AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING REGULATIONS REGARDING BID PROCEDURES- AND ADDING EMERGENCY PROCUREMENT PROVISIONS; REPEALING ORDINANCE NOS. 2010 AND 1817, AS CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 3.32; PROVIDING FOR SEVERABILITY;AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila seeks to establish all authorized level of procurement which allows for effective and efficient operation of the City's business by the Mayor and department directors;and WHEREAS, the authorized level of purchasing by the Mayor has remained at the same amount since 1997;and WHEREAS,the City of Tukwila seeks to establish an emergency purchasing policy consistent with State law; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,HEREBY ORDAINS AS FOLLOWS: Section 1. Regulations Amended.Tukwila Municipal Code Chapter 3.32, "Budget Provisions," is hereby amended to read as follows: 3.32.010 Transfers. Pursuant to RCW 35A.33.120, transfers within a department or division of the separate funds of the annual budget shall be by formal motion of the City Council. 3.32.020 Salary Increase. No salary shall be increased above the amount provided therefor in the annual budget and specified in the adopted salary plan of the City. Salaries may be increased subsequent to salary plan changes formally approved by the Cite Council. 3.32.030 Bids. When provided for in the annual budget,the Mayor is authorized to call for bids on public works projects or procure goods or professional services when the project or procurement,including change orders or amendments,does not exceed$40,000. 3.32.040 Unbudgeted Equipment or Fixed Asset Items. Any unbudgeted capital equipment or fixed asset item, including components or services of items, shall be approved by the Mayor and three affirmative votes of the respective Council committee assigned to the requesting department. "Fixed asset" items are defined as costing at least$5,000 and having a useful life of at least two years. t\';UI'ord I'rdcecsing\rirdinnnczstif3udg�t Provisions Title 3.32,doc SH."n 0711412009 Page 1 oft 31 3.32.050 Emergency Procurement. The Mayor or City Administrator is hereby authorized to waive competitive bidding requirements in the event of an emergency, as defined by RCW 39.04.2130(3). Such an emergency will be declared in writing by the Mayor or City Administrator.The City Council will meet within two weeks following the award of the contract to consider adoption of a resolution certifying that the emergency situation existed and for approval of the procurement. Section 2. Repealer. Ordinance Nos. 2010 and 1817, as codified at Tukwila. Municipal Code Chapter 3.32,"Budget Provisions,"are hereby repealed. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City,and shall take effect and be in full force and effect five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OP TU WISHINGTON, at a Regular Meeting thereof thisG'7 N day of _�i.4 2009. ATTEST/A THENTICATED: ' 1ii aggerton, or Christy O`Flaherty,CMC,City C erk Filed with the City Clerk: APPROVED AS M BY: Passed by the City Council: r]1 -C'7 Published: 5 Effective Date: _`/ Of ' of the City At me Ordinance Number: W,1Word PmcCssingWTdinancc6Budgct Kovisions'ritie 3.32.doc s1i:ksn o7rtcrzoo9 Page 2 of 2 32 0 \ � 4 \ f % o 0 o a m e o r� d r� o \ k. 7 k / ° k. 4 a 00 a) r*4 Lr) � ry) Lr) Lr) \ ry) § 2 % 0 R e > i c / e < y t 3 e s e u u u m E / / > E � f c e o t cr 3 / / 7 \ % u 5 7 \ / E 2 . ° k ' 2 « � 2 I 0 / / / S e 2 •E ƒ f � e 3 e Q / < \ ) 2 ° / ai / e ¥ � k \ / / / ( / 2 3 % 2 \ ƒ E % m E o ° _ ' 5 B '- -ro c 2 E > 2 u e o y 2 9 � # \ \ \ / 2 / ra 4-1 c V)_� >- a . ®0 g g * m e m Ln V) m % a % = m m k g t $ & t \ ) S u u \ u u K \ / c c = c c c - CL @ @ @ @ ) @ @ § ƒ E 3 3 2 R e E R k \ a 2 .x L � $ _ \ r14 r- — m o = e rq f = r-I N a _ < rl C14 # a e ri M 33 34 City of Tu kwi la City Council Finance Committee FINANCE COMMITTEE Meeting Minutes April 18, 2017-5:30 p.m. -Hazelnut Conference Room, City Hall Councilmembers: Verna Seal, Chair; Kathy Hougardy,Thomas McLeod Staff: Peggy McCarthy, Vicky Carlsen, Joseph Todd, Gail Labanara, Chris Flores, Laurel Humphrey Guests: Duncan Brown & Dylan Locati, Public Financial Management, Inc.; Stacey Lewis, Pacifica Law Group CALL TO ORDER: Chair Seal called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESSAGENDA A. 2017-2018 Capital Funding Plan Staff and guests from Public Financial Management, Inc. (PFM) and Pacifica Law Group provided an overview of the 2017-2018 Capital Funding Plan. The adopted 2017-2018 Biennial Budget and 2017-2022 Capital Improvement Plan includes issuance of limited tax general obligation (LTGO) bonds to help finance the 42nd Avenue South and 53rd Avenue South residential street projects and the Public Works shops replacement in the Public Safety Plan. An $8.4 million bond sale for the residential streets project is being considered for issuance this summer. The TIB Redevelopment bond anticipation note matures on December 1, 2017, and if developer proceeds are not received to pay off the debt as planned, the City will need to refinance or use an alternate payment source. It may be possible to apply the UTGO Public Safety bonds to this debt, but the Public Safety Plan ordinance will likely need to be amended. PFM's recommendation will likely be to renew or extend the line of credit. This topic will return to committee later this year, as there is time to plan for the December 1 maturity date. DISCUSSION ONLY. B. Ordinance: Removing Tukwila Municipal Code 3.32.040 Staff is seeking Council approval of an ordinance that would remove Tukwila Municipal Code Section 3.32.040 "Unbudgeted Equipment or Fixed Assets." This provision requires Mayor and Committee (not full Council) approval of unbudgeted capital equipment or fixed assets costing between $5,000-$39,999. These requests are infrequent and cause confusion in the organization. Under this proposal, City processes will be streamlined as the existing TMC 3.32.030, "Bids," requiring Council approval of all purchases over $40,000, will serve as the Council's clearly defined authority. Staff noted that once Tukwila's population reaches at least 35 Finance Committee Minutes.......................................................................................................................................Apri(18,2017 20,000, the City will have to reassess all purchasing policies and practices as State law gives cities more flexibility at that population level. UNANIMOUS APPROVAL. FORWARD TO APRIL 24,2017 COMMITTEE OF THE WHOLE. C. February 2017 Department Budgets-to-Actuals Report In response to Financial Policy GF-5 adopted along with the 2017-2018 biennial budget, staff provided a report on expenditures compared to allocated budget for each department for the month of February 2017. INFORMATION ONLY. D. Technology&Innovation Services Department Quarterly Report The adopted 2017/2018 Biennial Budget requires the Technology and Innovation Services(TIS) Department to provide a quarterly report to Council to describe implementation and benefits of the increased technology investments. Staff reported on the status of the five key TIS initiatives including budget, schedule, achievements and milestones. The Committee requested that the full Council receive copies of the report.Councilmembers Hougardy and Seal mentioned that wi-fi and network accessibility in City Hall continues to be challenging for Councilmembers and would like help with solutions. DISCUSSION ONLY. III. MISCELLANEOUS Chair Seal requested that copies of the updated Finance Committee work plan be distributed to attendees. Staff noted that the update includes a few items that were outcomes from the January City Council retreat,such as the items on employee reviews and discrimination reporting. Chair Seal asked about progress on researching a process for the 2019-2020 Biennial Budget, which is due to come before the Committee in the third quarter. Staff asked for clarification on how the Committee would like to approach this topic. Committee members expressed interest in first receiving a high- level briefing on different budget models, including priority based, incentive based, participatory, and zero-based. The briefing should include a description of the current practice as well as a summary and pros/cons for each of the models requested. DISCUSSION ONLY. Adjourned at 6:19 p.m. Committee Chair Approval Minutes by LH 36