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HomeMy WebLinkAbout2017-11-21 Finance MinutesCity of Tukwila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes November 21, 2017- 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Verna Seal, Chair; Kathy Hougardy, Thomas McLeod Staff: David Cline, Peggy McCarthy, Marty Grisham, Gail Labanara, Vicky Carlsen, Mia Navarro, Richard Takechi, Stephanie Brown, Erika Eddins, Laurel Humphrey, Joseph Todd, Tami Eberle- Harris, Roman Linsao, Joel Bush Guests: Deanna Gregory, Pacifica Law Group; Duncan Brown, PFM Financial Advisors LLC; Jason Hennessy, Berk Consulting CALL TO ORDER: Committee Chair Seal called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA A. Technology Upgrade for Emergency Management Operations Center Staff is seeking Committee approval to purchase a control center for technology equipment in the Emergency Operations Center (EOC) at Fire Station 51 in the amount of $13,933.64. The Finance Department advised staff that the City's policy for unbudgeted capital items over $5,000 should be followed in this case. Committee members restated their interest in changing this policy to redefine the meaning of the word "unbudgeted" as items like this are not efficient for staff or Council. UNANIMOUS APPROVAL. B. Parks and Fire Impact Fees Staff is seeking Council approval of three ordinances and one resolution that would update the City's fire and park impact fees, which have not been updated since 2008. To ensure that growth continues to pay for growth, staff contracted with Berk to update the fee methodology following data analysis. The proposed fire impact fee is based upon the estimated replacement cost of existing facilities on a per fire call or incident basis. The park impact fee is based on the identified capital needs from growth on a new service population per capita. The proposed ordinances include an annual update based upon the Construction Cost Index to avoid falling behind in the future. There is also a proposed ordinance to amend the PROS plan to update the parks level of service, and a proposed resolution to amend the Capital Improvement Program to update the impact fee eligible projects. Staff intends to return to Committee with additional policy options for consideration. Chair Seal stated support for this project, as the assumptions used in 2008 were not accurate. Staff is also working on a public outreach component of the proposed fee schedule. RETURN TO COMMITTEE. Finance Committee Minutes November2l, 2017 C. Ordinance: Financing Public Safety Plan Public Works Shops Facility Staff is seeking Council approval of an ordinance to authorize issuance of one or more series of limited tax obligation (LTGO) bonds in the aggregate principal amount not to exceed $20,000,000 to finance the acquisition of land and construction of the Public Works shops facility included in the Public Safety Plan. The Council authorized the acquisition of parcels to site the facility on November 6, 2017. Because the amount and timing of funds needed has a degree of certainty, this ordinance was prepared for adoption now so that the City would have the financing tools in place. In addition, it was prepared to include the greatest level of flexibility, including the option for short-term financing. Staff distributed a new info memo that corrects an error and shows that the debt service will be under what was budgeted by about half. The ordinance will be valid for one year. Chair Seal asked about how the Council would be kept informed or provide necessary approvals throughout the whole purchase process, as some may be concerned this ordinance would serve as a blank check. Ms. Gregory pointed out that on page 54, Section 12(3)(4) the ordinance provides that the Council must receive a report describing the final terms of the Bonds sold pursuant to the Sale document. The Council would also remain closely involved through consideration and potential approval of the purchase and sale agreement for the property. The disclosure document could also be provided to the Council as the transaction proceeds. The Committee expressed support for the ordinance being in place and providing flexibility for future financing decisions. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. D. Commercial Parking Tax Legislation Staff is seeking Council approval of an ordinance to amend Tukwila Municipal Code 3.48 to increase the commercial parking tax from 5% to 15% and impose a late penalty of 10% per month. The commercial parking tax was established in 1998 and has not been updated since then. An increase to 15% will make the rate comparable to tax rates in surrounding jurisdictions. There are currently nine parking facilities in Tukwila that charge customers and are therefore subject to this tax. Parking tax revenues are restricted to transportation projects. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. E. Resolution: Equity Policy Staff is seeking Council approval of a resolution that would adopt an equity policy for the City. The policy was written by an ad hoc employee committee, then further refined and approved by the Equity and Social Justice Commission. Since the Committee was last briefed, staff presented the draft to other staff in all departments. As a result of that, "gender identity" was added to the list of individuals and groups deserving of equity in Section 1. In section IV.5, "contractors" was added to the list of groups who will receive an equity toolkit from the City. The Equity and Social Justice Commission approved these two changes as well. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. There was consensus to consider the ESRI Enterprise License Agreement as the next order of business. F. Enterprise License Agreement: GIS Mapping Software Staff is seeking Council approval of a two-year agreement with Environmental Systems Research Institute, Inc. (ESRI) in the amount not to exceed $55,000 for a GIS enterprise license. Currently there is one staff member assigned to GIS and this licensing agreement will provide Finance Committee Minutes November2l, 2017 more opportunities for staff and residents to access GIS capabilities, primarily through the new Tukwila iMap application. The two-year agreement total is below the allocation of $90,000 in the adopted budget. UNANIMOUS APPROVAL. FORWARD TO DECEMBER 4, 2017 REGULAR CONSENT AGENDA. G. Resolution: Non -Represented Employees 2018 Compensation Staff is seeking Council approval of a resolution that would grant an increase of 2.7% to non - represented employees' compensation effective January 1, 2018. The Council's intent to review the overall compensation policy as adopted in Resolution 1796 is postponed to 1st Quarter 2018 due to the ongoing collective bargaining negotiations occurring this year. Staff is proposing the 2.7% increase because it matches the increase that was negotiated for the Teamsters, which is the group that represents the largest number of City employees. The resolution also adopts the benefits and longevity pay plan. Councilmember Hougardy asked how this percentage increase relates to the overall City budget and revenue picture. Staff replied that the third quarter report shows sales tax revenues are under budget, but property tax is at budget and gambling tax is over budget. Overall revenues increased by about $570k. The City can pay for this salary increase if authorized by Council because departmental expenditures continue to be under budget. Councilmember Hougardy also asked what the dollar amount of the proposed increase for the 37 employees amounts to, and staff will follow up with that information. While acknowledging the market study has not been performed this year, Committee members requested general information about salary increases in other jurisdictions. This information will be provided when the compensation policy will be reviewed in early 2018. Councilmember McLeod expressed concern about granting a salary increase to employees who may already be above market, and stated he intends to focus on this next year. Staff noted that the Teamsters contract that will be before the Council includes language specifically addressing that, which will help inform the Council's policy discussion with regard to non -represented employees as well. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. III. MISCELLANEOUS Adjourned at 7:53 p.m. Committee Chair Approval Minutes by LH