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HomeMy WebLinkAbout2018-05-08 Finance MinutesFINANCE COMMITTEE Meeting Minutes May 8, 2018 - 5:30 p.m. - Hazelnut Conference Room, City Hall City of Tukwila City Council Finance Committee Councilmembers: De'Sean Quinn, Chair; Dennis Robertson, Kate Kruller Staff: Peggy McCarthy, Laura Crandall, Gail Labanara, Rachel Bianchi, David Cline, Ben Hayman, Kim Walden, Trish Kinlow, Laurel Humphrey CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA A. Justice Center Schematic Design and Updated Budget Staff is seeking Council approval to proceed with the Design Development phase of the new Justice Center building. Schematic Design is now complete, providing the Council with the first predictable budget for the project, which is verified at the $68.5 million estimated at the end of the programming stage. The schematic design is for a 46,690 square foot building. The pre- program square footage was targeted at 45,500, but it was not possible to design a building that size without losing key functions. The building design reflects the collaborative effort of the stakeholders in Police, Court, and Emergency Operations. The proposal includes a flexible conference area, modern court facilities, police functionality, joint staff areas, and planned areas for future expansion if needed. Schematic design represents 30% design while design development will be 60%. The Public Safety Committee unanimously recommended proceeding to Design Development at its May 7, 2018 meeting. Chair Quinn asked Mr. Goldblatt to share his thoughts on the proposal, and Mr. Goldblatt stated that the building is a good value with an efficient design that reflects cooperation between users well. INFORMATION ONLY. B. Public Safety Plan Financing Since February 2018, the Committee has been reviewing and discussing strategies for addressing the Public Safety Plan budget gap associated with market conditions. At its April 3 meeting, the Committee directed staff to bring more information about the overall budget forecast and the six-year financial plan before requesting a recommendation. Staff proposed a schedule that includes a May 22 discussion on the six-year financial plan and the new forecasting tool, Whitebirch. During that meeting it will be helpful for the Committee to give direction on any additional scenarios it would like to consider, and those will be presented at the June 5 meeting. lithe Committee is ready to move forward, a full Council work session will be held the following week with potential final action on June 18. A public open house will be held after final action. The Committee tentatively agreed with this schedule, Finance Committee Minutes May 8, 2018 recognizing that shifts may occur. Councilmember Robertson noted that if a B&O tax is a solution directed by the Council, business outreach will need to factor in. Chair Quinn stated that while staff is not recommending a B&O tax, all options are on the table and need to be shared with the full Council. Councilmember Kruller noted that the Committee needs to share its criteria and opinions with staff in order to move forward. The May 22, 2018 meeting will provide an opportunity for the Committee to request additional scenarios. Staff demonstrated a preview of the Whitebirch Financial Modeling Platform that was developed by PFM, the City's financial advisor. Staff is currently establishing a baseline projection based upon historical actuals, and the next step is to develop alternative assumptions. Councilmember Robertson asked if Councilmembers would be able to use the model. Currently it reflects live data, but staff will look into a read-only environment. He also requested to have Whitebirch charts and samples as hard copies in the Committee packet when it returns to the May 22, 2018 meeting. Councilmember Kruller mentioned that Councilmember Robertson previously asked if moving costs have been evaluated. The project budget does include furniture, fixtures and equipment, but not loss of productivity associated with moving as that is an operational, not a capital expense. Planning models also do not include any costs associated with City Hall or the 6300 Building. III. MISCELLANEOUS Adjourned at 6:41 p.m. Committee Chair Approval Minutes by LH