HomeMy WebLinkAbout2018-11-06 Finance MinutesCity of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
November 6, 2018 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: De'Sean Quinn, Chair; Dennis Robertson, Kate Kruller
Staff: David Cline, Peggy McCarthy, Vicky Carlsen, Bruce Linton, Chris Flores
CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESS AGENDA
A. MAYOR'S OFFICE CONTRACTS AND AGREEMENTS
Staff is seeking Council approval of the following contracts and agreements:
Prosecution Services
Contract with the Walls Law Firm for a flat rate of $13,100 per month, which is a 3% reduction
from their current monthly rate.
Public Defense Services
Contract with Kirshenbaum & Goss, Inc. for a flat rate of $30,600 per month for 2019 and 2020,
which is a reduction from the 2017-2018 rate of $32,600.
City Attorney Services
Contract with Kenyon Disend for general City Attorney services, public records support, litigation
and contested administrative proceedings, specialized services, and paralegal services in the
amount of $33,940 per month.
Lease Agreement with Sound Cities Association
Renewed lease agreement with Sound Cities Association for office space in the 6300 Building for
a base rent of $24,820.00 in 2019 and $25,550 in 2020. In addition to the base rent, SCA will pay
leasehold excise tax at the rate of 12.84%. Provisions also include Internet services for
$100/month, payment of long distance and toll calls, and after-hours emergency callouts or
other agreed upon project work at a flat rate of $150/hour.
Lease Agreement with Alliance One
Renewed lease agreement with Alliance One Management Receivables for space in the court
area at a rate of $930/month, which represents a 3.33% increase. In addition to the monthly rent,
Alliance One will pay leasehold excise tax at the rate of 12.84%.
UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 19, 2018 REGULAR CONSENT AGENDA.
Finance Committee Minutes November 6, 2018
B. TAX LEVY LEGISLATION
Staff is seeking Council approval of two ordinances relating to property tax: one that would
increase the City's Regular Property Tax Levy from 2018, and one that would levy general and
excess property taxes. These ordinances are presented to the Council on an annual basis.
According to the King County Assessor, the projected assessed value for Tukwila is
$6,709,378,301. The ordinance to set the general tax levy also includes the excess levy related to
the Public Safety Plan, which will be assessed as long as the bonds are outstanding. The total
excess levy requirement for 2019 is $2,840,000 with an approximate levy rate of $0.43 per
thousand. The maximum allowable levy is estimated to be $3.49003, but due to the 1% limitation,
the preliminary levy rate is estimated to be $2.37331. UNANIMOUS APPROVAL. FORWARD TO
NOVEMBER 13, 2018 COMMITTEE OF THE WHOLE.
C. BUDGET LEGISLATION
Staff is seeking Council approval of an ordinance to adopt the 2019-2020 Biennial Budget and a
resolution to adopt the 2019-2020 Financial Planning Model and Capital Improvement Program.
These are the legislative mechanisms to adopt the budget and CIP but the Council still has
budget discussion scheduled for the next several Council meetings. FORWARD TO NOVEMBER
13, 2018 COMMITTEE OF THE WHOLE FOR PUBLIC HEARING.
D. RESOLUTION: FINANCIAL POLICIES
Staff is seeking Council approval of a resolution that would amend the General Financial Policies
that are included as appendices to the adopted Budget and Capital Improvement Program. The
policies represent values and expectations for financial planning, budging, accounting, report
and other management practices. Revisions for the next biennium include two new policies and
minor adjustments to the others. Proposed new policy FP-7 would clarify the interpretation of
TMC 3.32.040 to mean that if sufficient appropriation exists to cover a capital purchase within the
Mayor's signing authority, it is deemed budgeted and does not require Committee approval.
Proposed new policy GF-6 states that the City Council will receive a list of contracts on a quarterly
basis, proposed to begin in 1st Quarter 2019. Councilmember Kruller questioned whether the
proposed interpretation of "unbudgeted" in TMC 3.32.040 would reduce Council's visibility to
certain transactions. Councilmember Robertson expressed that Council time could be better
spent on more impactful issues and he supports the interpretation. Committee Chair Quinn
indicated this interpretation, along with the new policy on contract reporting, would move the
Council forward. Policy GF-5 was also discussed, though no revisions to this policy were
proposed. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13, 2018 COMMITTEE OF THE
WHOLE.
E. AGREEMENT: BUSINESS LICENSING
Staff is seeking Council approval of an agreement with the Washington State Department of
Revenue Business License Services (BLS) to establish the terms under which BLS will act as the
City's agent for processing business licenses. Engrossed House Bill 2005 requires any city with a
general business license to partner with the state on a combined license service. UNANIMOUS
APPROVAL. FORWARD TO NOVEMBER 19, 2018 REGULAR CONSENT AGENDA.
Finance Committee Minutes November 6, 2018
F. RESOLUTION: CANCELLATION OF UNCOLLECTABLE ACCOUNTS
Staff is seeking Council approval of the annual resolution that would declare the cancellation of
uncollectible accounts receivable. The total for this year includes false alarm fees equaling
$12,397.35, miscellaneous billings equaling $435.00 and NSF checks equaling $435 for a total of
$12,832.35. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 19, 2018 REGULAR CONSENT
AGENDA.
III. MISCELLANEOUS
Adjourned at 5:48 p.m.
Committee Chair Approval
Minutes by PM