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HomeMy WebLinkAboutReg 2018-09-04 Item 2B - Presentation - Mid-Year Report from Public Safety Bond Financial Oversight CommitteeCITY OF TUKWILA PUBLIC SAFETY BOND FINANCIAL OVERSIGHT COMMITTTEE Report to the City Council August 2018 On behalf of my fellow members, I am pleased to present you with a 2018 mid -year Report of the Public Safety Bond Financial Oversight Committee. Per the Charter adopted in Resolution 1892, our role is to review the allocation of bond proceeds and progress on achieving the purposes of the Public Safety Bond and to report to the City Council semi-annually. The Committee has met twice in 2018, first on April 19 and recently on August 6. Pursuant to Ordinance 2509 and Resolution 1892, during these meetings the Committee reviewed status and expenditure reports relating to the Public Safety Bond as approved by Tukwila voters at the November 8, 2016 General Election. City staff also provided an overview of the Public Safety Plan overall budget, schedule and status at each of our meetings. The Oversight Committee has to date reviewed bond expenditures through July 31, 2018 and finds that these expenditures are in compliance with the purposes of the Public Safety Bond. Minutes of our 2018 meetings are attached to this report. The Committee understands that our work will continue to intensify as Public Safety Plan projects progress and we look forward to our continued relationship with the City Council. Attachments: Final April 19, 2018 Committee Meeting Minutes Draft August 6, 2018 Committee Meeting Minutes 1 2 City of Tukwila Public Safety Bond Financial Oversight Committee April 19, 2018 City Hall, Hazelnut Conference Room 5:30 p.m. MINUTES -Approved August 6, 2018 I. Call to Order II. Roll Call Committee members present: Jessica Jerwa, Vice -Chair, Andy Reiswig, Jun Castillo, Randy Coplen City staff present: David Cline, Laurel Humphrey, Peggy McCarthy Mr. Goode was absent, and Ms. Jerwa chaired the meeting. III. Approval of Agenda Mr. Reiswig moved approval of the agenda, and Mr. Coplen seconded. The motion carried unanimously and the agenda was approved. IV. Approval of Minutes Mr. Castillo moved approval of the October 19, 2017 minutes, and Mr. Coplen seconded. The motion carried unanimously and the minutes were approved. V. Unfinished Business (n/a) VI. New Business 1. Public Safety Plan Project Update City staff updated the Committee on the status of projects associated with the Public Safety Plan. The City is currently working on site acquisition for all projects. The Council's Public Safety Committee will review the schematic design of the Justice Center in mid -May. The Finance Committee has been working on strategies to address the Public Safety Plan budget gap which is occurring as a result of market conditions. A public open house is planned for June 23, 2018 and the Committee is encouraged to attend. Staff distributed copies of the April reports to Council from City Administration and the Public Safety Plan Program Management consultant. Mr. Reiswig requested a map of the City showing all Public Safety Plan project locations. 3 2. Public Safety Plan Financial Overview The Committee reviewed a report of all Public Safety Plan revenues & expenditures through March 2018. Total actual revenues through March 31 are $38,538,348.00 from the voter - approved bond, fire impact fees, and investment interest. Actual expenditures through March 31, 2018 are $5,341,877. Staff distributed a document showing the expenditure details, including vendors, descriptions and amounts by project. The Committee also reviewed an updated list of Public Safety Plan contracts. VII. Miscellaneous Staff asked the Committee if they would be interested in convening in July, and the Committee agreed. The City will have updated information on project budgets to share at that time. Staff will follow up with a scheduling poll. Mr. Coplen commented that the City should avoid change orders in all Public Safety Plan construction projects. Staff replied that the GC/CM model of construction provides more predictable project budgets because the architect and contractor make budget decisions together at the point of schematic design. Mr. Reiswig commented that the market conditions causing the budget gap are a regional problem impacting many industries and cost escalations are unpredictable. VIII. Adjournment Mr. Coplen moved adjournment and Mr. Castillo seconded the motion. The motion carried and the meeting was adjourned at 6:27 p.m. Minutes by LH, Reviewed by PM 4 City of Tukwila Public Safety Bond Financial Oversight Committee August 6, 2018 6300 Building, Rainier Conference Room 3:30 p.m. MINUTES I. Call to Order II. Roll Call Committee members: Sean Goode, Chair, Jessica Jerwa, Vice -Chair, Andy Reiswig, Jun Castillo, Randy Coplen City staff: David Cline, Laurel Humphrey, Peggy McCarthy, Aaron Williams Guest: Deb Sorensen, resident III. Approval of Agenda Mr. Reiswig moved approval of the agenda, and Mr Coplen seconded. The motion carried unanimously and the agenda was approved. IV. Approval of Minutes Mr. Castillo moved approval of the April 19, 2018 minutes with the spelling of his name corrected, and Mr. Reiswig seconded. The motion carried unanimously and the minutes were approved as amended. V. New Business 1. Election of Chair and Vice -Chair Mr. Reiswig nominated Mr. Goode to serve a second term as Chair and no further nominations were made. By a show of hands, Mr. Goode was re-elected as Chair. Mr. Reiswig nominated Ms. Jerwa to serve a second term as Vice -Chair and no further nominations were made. By a show of hands, Ms. Jerwa was re-elected as Vice - Chair. 2. Public Safety Plan Project Update/Overview City staff updated the Committee on the status of projects associated with the Public Safety Plan. After several months of considering options to address the market -related funding gap, the City Council in June made the decision to remove Fire Station 54 from the program. Stations 51, 52 and the Justice Center are moving through the design stages with realistic budgets now known. The Council is being asked to approve amendments to bring all contracts in alignment with current budgets. Mr. Goode asked about the impacts of redirecting certain funding for parks to the Public Safety Plan. While this is an impact on parks, the City has not adequately addressed facility needs for decades. Mr. Goode also asked if the budgets reflect the cost of site acquisitions on Tukwila International Boulevard, and staff confirmed that they do. 3. Public Safety Plan Financial Overview 5 The Committee reviewed the original and revised revenue and expenditure budgets for the Public Safety Plan. Total actual revenues through July 31, 2018 are $39,446,760 from the voter -approved bond, fire impact fees, real estate excise tax, and investment interest. The total for actual and projected revenues is $117,745,139.00. The total expenditure budget change is $34,752,107. The City's bond rating was recently affirmed at AA stable. Mr. Reiswig asked how fire impact fees are estimated and staff stated that it is based upon past years and an assessment of current development. The City estimates fee revenue conservatively. The fire apparatus budget decreased because the Council's financing plan includes financing the apparatus through a State program in the out -years. Station 51 was originally slated to be the headquarters station and the revised budget reflects the change to Station 52. Mr. Reiswig asked how contingency is estimated and staff confirmed that it is a percentage of construction cost. Mr. Castillo and Mr. Coplen asked for clarification on the fire apparatus budget. Some equipment has already been purchased, and everything else on the schedule is funded through 2029. 4. Expenditure Reports The Committee reviewed actual Public Safety Plan expenditures through July 31, 2018, including a detailed list and current contracts. Actual expenditures through July 31, 2018 are $7,673,440.00. Mr. Goode asked why settlement agreement amounts vary and staff stated that the businesses have different values and the City hired an independent appraiser to provide information. Mr. Reiswig inquired how the City is tracking the "not to exceed" amounts in the contracts and if the full amounts will be used. Shiels Obletz Johnsen, the City's project manager closely monitors all contracts and the dollar amounts should be close to the actuals at this point. 5. Committee Charter The Committee is tasked with reviewing its Charter once per year and recommending any desired changes. Staff noted that one Committee responsibility is to review copies of performance or financial audits of bond programs, and while no specific Public Safety Plan report exists at this time, the annual audits for the City are clean. Mr. Coplen moved to renew the Charter as written and Ms. Jerwa seconded. The motion unanimously passed and the Charter was renewed with no changes. VI. Miscellaneous • The Chair and Vice -Chair will work with City staff on scheduling a report to the City Council. • Mr. Coplen expressed appreciation for the service Mr. Goldblatt, the Council's Public Safety Plan Program Management Quality Assurance consultant, is providing. He is impressed with Mr. Goldblatt's knowledge and experience. VII. Adjournment Mr. Goode moved adjournment and Mr. Reiswig seconded the motion. The motion carried and the meeting was adjourned at 4:32 p.m. Minutes by LH, Reviewed by AW 6