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Home My WebLink About2018-07-05 Finance Minutes City of Tukwila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes *OFS Ƿț ǴǲǳǺ ǷȜǵǲ JȚGȚ (;T?FHON #IH@?L?H=? 2IIGț #CNS (;FF Councilmembers: , Chair; Dennis Robertson, Kate Kruller Staff: David Cline, Williams, Rick Mitchell, Wynetta Bivens, Gail Labanara, Jeff Friend, Jay Wittwer, Henry Hash, Joseph Todd, Joel Bush, 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 Contract: Gartner, Inc. for Information Technology Advisory Services A. Staff is seeking Council approval to renew a contract with Gartner, Inc. in the amount of $53,121.83 for information technology advisory services including vendor research, contract - term technology goals. Tukwila has contracted with Gartner for these services since January 1, 2018 in the amount of $39,137.50 and is seeking Council approval of a seven-month renewal. Funding for the contract renewal is budgeted in Professional Services, and it is expected that these services will result in cost savings for the City. The Committee asked clarifying questions and requested that staff update the memo with additional detail on expected savings as well as return with a six-month report on savings. UNANIMOUS APPROVAL. FORWARD TO JULY 16, 2018 REGULAR MEETING AS NEW BUSINESS. Resolution Updating the 2012 Strategic Plan and Priority Based Budgeting Update B. Staff is seeking Council approval of a resolution that would amend the 2012 Strategic Plan to incorporate feedback collected from community members and City staff in 2018. Staff also briefed the Committee on the progress of the Priority Based Budgeting process. Departments have identified programs and allocated 2017 and 2018 budgets as a practice run. Once the Council adopts revisions to the Strategic Plan, staff can then score the programs against the strategic goals as well as an additional set of attributes recommended by the Center for Priority Based Budgeting and used by other cities. These program attributes will account for 25% of the scoring while the strategic goals will make up the other 75%. Departments will score their own programs, then validation will occur by peer review and administration approval. Department budgets will be presented to Council Committees starting in August, and then the full package presented to Council later this fall will include the results of the scoring process for Council consideration. UNANIMOUS APPROVAL. FORWARD TO JULY 9, 2018 COMMITTEE OF THE WHOLE. &CH;H=?#IGGCNN?? -CHON?MȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚ*OFS ǷțǴǲǳǺ Compensation Policy C. Committee members continued discussing the compensation policy for City employees. The City Council held a work session on June 19, 2018 where there was consensus for the Finance Committee to continue discussing COLA and market adjustments, compression, positions above and below market, and new incentives. On July 2, the City Council received a letter from a coalition of non-represented employees asking for reconsideration of comparable cities, salary process, recruitment and retention, and compression. Chair Quinn asked for comment from those in the room. Staff stated that the main concern for non-represented employees is the comparable cities. Resolution No. 1796 currently states that comparable cities will be all Puget Sound jurisdictions with +/- . However, cities like Burien and Shoreline that appear on that list do not provide the same services, such as police, fire, and utilitiesservice levels for the daytime population of 150k+. It may be more appropriate to compare salaries to cities with the same number of employees and/or that offer the same levels of service. Many non-rep employees would also like a full salary study and would like retention and incentives to be re-evaluated. Committee members requested copies of the full Association of Washington Cities Salary and Benefit Survey for both 2017 and 2018. Councilmember Kruller asked that the desired criteria for comparable cities be provided in writing. Staff presented the results of the 2017 market study for the positions of City Administrator, Public Works Director, Police Chief, Parks Director, Deputy Police Chief, Deputy Public Works Director, Deputy Finance Director, Building Official, Human Resources Analyst, Deputy City Clerk, and Administrative Assistant. The regression analysis results show that the City is in alignment overall and that COLA adjustments have kept salaries on pace. Councilmember Robertson requested a column showing how the comparable cities classify jobs, be it decision band methodology or something else. Councilmember Quinn commented on the delay in doing the market study and stated that in the future they should be done on schedule per the policy regardless of what else is going on. Although none of the comparable cities have a Fire Chief, Councilmember Robertson asked that a column be added for that position, listing cities that have it. He also asked that staff provide a list of jobs deemed not benchmarkable. Councilmember Kruller asked that the salaries be listed in annual, not monthly, amounts. The Committee also asked for more information on benefits that other cities provide for recruitment, motivation, and retention. DISCUSSION ONLY. 2018 1 Quarter Sales Tax and Miscellaneous Revenue Report st D. Staff presented the 2018 First Quarter Sales Tax and Miscellaneous Revenue Report, including details on retail sales tax, gambling tax, and admissions tax revenues with sales tax broken out by industry classifications. Total sales tax collections for the 1st quarter were $33,000, or 1%, above those for the same period last year. Construction sales tax is up 15% compared with the same period last year, and sales tax from other industries decreased by $17,000. It is possible that the 2018 budget for sales tax revenue will not be met. Committee members discussed concerns about flattening sales tax and asked that the full Council receive the report. Councilmember Kruller stated that she has asked several times if Administration is aware of other cities that have built as many construction projects in the same time frame as the Public Safety Plan Projects, and staff will follow up. DISCUSSION ONLY. &CH;H=?#IGGCNN?? -CHON?MȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚ*OFS ǷțǴǲǳǺ Public Safety Plan - Public Works Shops Financing E. Staff updated the Committee on the schedule of events for issuance of up to $20 million limited tax general obligation bonds for the acquisition of property and construction of improvements for the new Public Works shops project in the Public Safety Plan. On June 18, 2018 the City Council authorized staff to move forward with a financing scenario that includes $30 million with financing over a 20-year term. Bond proceeds will be used to complete property purchases, reimburse expenditures previously incurred, and construct shops improvements. The bond sale is scheduled for July 31, 2018, and closing for August 14, 2018. Councilmember Robertson asked if the City could proceed with bond issuance and then decide not to buy a piece of property. Staff replied that there is flexibility in the bond ordinance and the funds could be used for other components of the Public Safety Plan. DISCUSSION ONLY. III.MISCELLANEOUS Adjourned at 7:05 p.m. Committee Chair Approval -CHON?M <S ,(