HomeMy WebLinkAbout2019-06-24 Finance MinutesCity of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
June 24, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: Thomas McLeod, Chair; De'Sean Quinn, Kathy Hougardy
Staff: Juan Padilla, Henry Hash, Jack Pace, Jeff Friend, Han Kirkland, Rachel Bianchi,
Erika Eddins, Vicky Carlsen, Aaron Williams, Gail Labanara, Jay Wittwer
Guest: Sean Goode, Public Safety Bond Financial Oversight Committee Chair; Duncan
Brown & Steven Amano, PFM Financial Advisors, LLC;
CALL TO ORDER: Chair McLeod called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESS AGENDA
A. Report from the Public Safety Bond Financial Oversight Committee
Mr. Goode provided an update on the Public Safety Bond Financial Oversight Committee (FOC),
which has reviewed status and expenditure reports relating to the Public Safety Bond through
April 5, 2019, finding the expenditures to be compliant with the bond purposes approved by
voters. Mr. Goode said that the FOC had questions and discussion about how the City could have
better projected the project expenses to avoid the budget shortfalls the City is currently
addressing. He is concerned about community chatter regarding how the Public Safety Plan
budgets correlate with the overall City budget, including service changes such as cancellation of
the annual4t" of July fireworks. He strongly encourages the City to strengthen its communication
on the Public Safety Plan budgets. Committee members discussed and agreed that more public
outreach should be done on this topic. Mr. Goode suggested taking advantage of the "See you
in the Park" events this summer, and Councilmember Quinn suggested he partner with the
Council on that. Councilmember Hougardy said that staff should support Councilmembers with
messaging, since they are usually the public face of the city. Councilmember Quinn asked Mr.
Goode what has been most effective to the work of the FOC, and he replied that meeting Steve
Goldblatt, the Council's Program Management Quality Assurance consultant at the April 11
meeting was very helpful in that he affirmed project costs as a non -biased expert.
Councilmember Quinn pointed out that the bond measure was crafted to maintain existing
service levels and is an investment in community safety. Chair McLeod said that the City is in an
unprecedented construction market and he is comfortable communicating to the public that the
City's estimates were too low. Committee members expressed appreciation for the FOC and Mr.
Goode stated he is happy to participate as a community voice and partner of the Council.
DISCUSSION ONLY.
Finance Committee Minutes June 24, 2019
B. Public Safety Plan: UTGO & LTGO Bond Ordinances
Staff is seeking Council approval of an ordinance to authorize the issuance of not to exceed
$40.885 million in Unlimited Tax General Obligation (UTGO) bonds and not to exceed $25 million
in Limited Tax General Obligation (LTGO) bonds for the Public Safety Plan. This bond issuance is
provided for in the 2019-2020 biennial budget and costs will be reduced by timing LTGO with
UTGO bonds. Mr. Brown provided an overview of the financings including background, timing
considerations, and milestones. Committee members asked clarifying questions and asked for
an updated debt service chart. UNANIMOUS APPROVAL. FORWARD TO JULY 8, 2019
COMMITTEE OF THE WHOLE.
C. Contract: Health Care Broker Services
Staff is seeking Council approval of a contract with USI Insurance for healthcare broker services
in an annual amount of $90,000, not to exceed $7,500.00 per month, for a term of 36 months. The
City received five responses to its Request For Proposals, and USI was determined to be the most
qualified based upon experience and service. Funding for this contract exists within the 502
medical plan fund. Councilmember Hougardy asked if service providers would change. Staff
replied that minor adjustments may be made but it is into the intent to change providers. Chair
McLeod asked if there is a cost savings associated with the change in brokers. Staff said that
there may be savings associated with benefit changes but the immediate benefit is the customer
service to employees. Councilmember Quinn stated appreciation for the City engaging in a
competitive bidding process for this service. UNANIMOUS APPROVAL. FORWARD TO JULY 8,
2019 COMMITTEE OF THE WHOLE.
D. April 2019 Department Budget-to-Actuals Report
Staff presented the Committee with the April 2019 Financial Report, which describes the general
state of departmental expenditures and highlights significant trends. General Fund
expenditures totaled $22.4 million as compared to the allocated budget of $22.8 million. The
allocated budget reflects year-to-date spending patterns of the previous year. Significant
unbudgeted events include the East Marginal Way power pole accident on April 5 and the
February snowstorms. A claim totaling $245K has been initiated with the Washington Cities
Insurance Authority for reimbursement of the expenses associated with the power pole incident.
Unbudgeted costs associated with the snowstorms total $81,497. 11 of 14 General Fund
departments were under their allocated budget. Fire, Street Maintenance & Operations, and
Community Development have overages due to pipeline positions and overtime costs, snow and
power pole events, professional services and structural code compliance review respectively.
DISCUSSION ONLY.
III. MISCELLANEOUS
AdjourJed at 6:29 p.m.
Committee Chair Approval
Minutes by LH