The URL can be used to link to this page

Home My WebLink About2018-10-16 Finance Minutes City of Tukwila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes October 16, 2018 5:30 p.m. Hazelnut Conference Room, City Hall Councilmembers: , Chair; Dennis Robertson, Kate Kruller Staff: David Cline, Rachel Bianchi, Peggy McCarthy, Vicky Carlsen, Erika Eddins, Jeff Friend, Bruce Linton, Aaron Williams, Derek Speck, Wynetta Bivens, Gail Labanara, Cindy Wilkins, Tami Eberle-Harris, Chris Flores, Laurel Humphrey CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m. I. PRESENTATIONS II.BUSINESS AGENDA A. Cashiering System Purchase Staff is seeking Council approval to purchase a new cashiering system for the Finance in the amount of $43,395. The current point of sale cashiering system was implemented in 2009 and is no longer being support by the vendor, nor does it comply with a new secure encryption protocol. The proposed new system from Tyler Technologies has been vetted by the TIS Department and Finance staff. With the savings in maintenance fees, staff expects the system to pay for itself in less than eight years. The implementation phase will include staff training. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 22, 2018 COMMITTEE OF THE WHOLE. B. Ordinance: Gambling Tax Staff is seeking Council approval of an ordinance that would increase the gambling activities tax on cardrooms from 10% to 11%. There are currently four cardrooms in Tukwila generating $3.8 million in gambling taxes in 2017. Staff estimates that the 1% increase will generate $350,000 in additional revenue in 2019, which will help the City balance the budget and maintain the current level of services. Councilmember Robertson expressed support for the proposal. Councilmember Kruller referenced an email the Council received from Evergreen Gaming opposing the proposed increase and asked if there was danger of losing any of the businesses. Staff met with representatives from the four cardrooms, who expressed concerns about profitability in a competitive market. Chair Quinn mentioned the request for parking and pedestrian improvements by two of the card rooms an encouraged staff to continue those discussions in the spirit of partnership with stakeholders. The Committee requested that staff make a recommendation on how this revenue will specifically be spent if approved by Council. NO RECOMMENDATION. FORWARD TO OCTOBER 22, 2018 COMMITTEE OF THE WHOLE. FinanceCommittee Minutes..................................................................................................................................October 16,2018 C. Ordinance: Business License Fees Staff is seeking Council approval of a resolution that would increase the business license fee from $70 to $112 per full time employee and from $35 to $56 per part time employee, resulting in a revenue increase of $1.5 million. The City is facing a budget shortfall due to flattening sales tax includes $1.8 million in departmental reductions and additional revenues in the form of increases to gambling tax and business license fees. The proposed resolution adopts a revised business license fee schedule, changes outside contractors to a flat fee of $100, and will remove reference to the archaic Committee members discussed the proposal for contractors based outside of Tukwila and decided the flat rate should be evaluated after one year. Councilmember Kruller asked for rates for neighboring jurisdictions including whether they have B&O tax. Chair Quinn stressed the importance of ongoing communication with the business community, with consistent and clear messaging around why the City is considering this change. Staff has already conducted business outreach and is working on a communications plan in the event of Council passage. NO RECOMMENDATION. FORWARD TO OCTOBER 22, 2018 COMMITTEE OF THE WHOLE. D. Resolution: Employee Compensation Policy Staff presented the draft resolution incorporating feedback given in previous Committee meetings, which containing policy items relating to timeliness, comparability, market ranking, and internal equity. Committee members discussed the current proposal and requested the following changes: Amend B(1)only Amend sentence at end of B(4:) provide a written justification documenting that an adjustment is warranted Amend sentence at end of B(5): prior to impleme Councilmember Robertson stated that he believes 10% above is too high for market competitiveness. The City should be paying the average of current comparables. Chair Quinn and Councilmember Kruller noted that the policy revisions add more opportunities to review anomalies as well as overall review of the policy itself. MAJORITY RECOMMENDATION. FORWARD TO OCTOBER 22, 2018 COMMITTEE OF THE WHOLE. E. Contract Amendment: Interim Human Resources Director Staff is seeking an amendment to Contract 18-132 with Prothman Company for an additional $40,000 to allow the interim Human Resources Director to remain through January. The City is initiating a search for a new HR Director and anticipates having someone begin in January. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 5, 2018 REGULAR CONSENT AGENDA. FinanceCommittee Minutes..................................................................................................................................October 16,2018 F. Contract Amendment: Labor Relations Support Staff is seeking an amendment to Contract 18-035 with Cabot Dow & Associates for an additional $23,000 to retain labor relations support services through December 31, 2018. There has been additional work this year due to simultaneous negotiations and one contract going to arbitration. The original amount of $35,000 does not cover these additional services. Chair Quinn requested additional language to confirm the City will receive the data and any other documentation. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 5, 2018 REGULAR CONSENT AGENDA. G. Proposed 2019-2020 Biennial Budget Staff presented proposed budgets for the following departments: of the 2018 budget in 2019 and a 1.63% decrease of the 2018 budget in 2020 with reductions and additions outlined in the memo. Councilmember Kruller stated that she has heard that departments have been asked to underspend by 5% for the Mayor to have discretionary funds. Staff replied that all departments except Police and Fire have been asked to cut 3% to address the revenue shortfall. These savings were primarily in unfilled positions in 2018 but in 2019 and 2020 they are ongoing savings such as contracts and supplies. Councilmember Kruller again stated she would like to better understand the mechanics of any discretionary spending available to the Mayor. Administrative Services Administrative Services is a new department that includes Communications, Community Engagement, Human Services, and Human Resources. The overall budget for 2019 is 3.7% less than what was budgeted for these functions in 2018. Human Services is funded at the same level, including the additional $50,000 approved by the Council in 2016, and 34 programs were chosen for funding through the RFP process. Self-Insured Healthcare (Fund 502) -insured healthcare plan and all costs are fully covered, including the IBNR (insured but not reported) reserve. LEOFF I Retiree Self-Insured Healthcare Plan (Fund 503) -insured healthcare plan and has been reduced to actuary. FORWARD TO OCTOBER 22, 2018 COMMITTEE OF THE WHOLE. III.MISCELLANEOUS Adjourned at 6:48 p.m. Committee Chair Approval Minutes by LH