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HomeMy WebLinkAbout2019-08-26 Finance MinutesCity of Tukwila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes August 26, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Thomas McLeod, Chair; De'Sean Quinn, Kathy Hougardy Staff: David Cline, Vicky Carlsen, Jay Wittwer, Chris Flores, Bruce Linton, Tony Cullerton, Jeff Friend, Laurel Humphrey, Jeremy Brecher-Haimson CALL TO ORDER: Chair McLeod called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA A. Fire Department Budget Committee members and staff continued discussion of the Fire Department budget. If the Council chooses to fund the existing service levels, it will need to authorize a budget amendment totaling $522,900 for 2019 and $496,650 for 2020. These amendments would increase overtime ($213K), funding the Fire Academy ($160K), funding service separations (100K), a COLA adjustment for these items in 2020, and unbudgeted significant events: the propane tank incident (reimbursable), snowstorms (non -reimbursable), and a structural code compliance issue (reimbursable). In addition to increasing the expenditure budget, staff recommends that the Fire Department begin billing for false alarms and recovery of hazardous incident response costs as previously authorized by Council. Another source of revenue is an ambulance transport fee similar to what other Zone 3 cities collect. These revenues will lessen the impact to the general fund. Councilmembers asked clarifying questions about minimum staffing, which is 13.0 FTE per current policy. Currently 18 personnel are funded per shift, which includes vacation and Kelly days. Chair McLeod asked if those on leave due to injuries can do administrative/light duty work. Staff replied that is occurring more frequently this year. Chair McLeod pointed out the policy question of determining what can be done to reduce overtime usage going forward. The bookends provided to Committee in May were to either fund the Department as it currently operates, or consider dropping minimum staffing down to 12 on days when only 12 report to shift. Chair McLeod referenced the potential impact to other departments if budget is added to Fire. He asked where budget would come from to cover the cost of fundingthe academy, and staff replied either reducing other departments or identifying a new revenue source. Councilmember Seal asked what it means to fund the academy and staff replied that it is the salary and benefits of those in the academy as well as overtime costs associated with being shorthanded. Councilmember Quinn asked about how Police covers academy costs and staff replied that it is Finance Committee Minutes August 26, 2019 absorbed in their budget. He also stated it would be helpful to have costs broken out in greater detail so the Council can better anticipate the budget. Finance staff is working to update the chart of accounts for greater transparency. Councilmember Quinn asked if service separations are identified separately so they can be appropriately offset. Staff replied that separations can be costly and departments are expected to absorb them by cutting back in other areas. Councilmember Quinn stated that the Fire Department has requested significant budget amendments each year since 2012 and these proposed amendments reveal the true cost of service. Councilmember Seal pointed out that when the Department begins charging for false alarms again, the business community will direct any backlash to the Council. Councilmember Quinn said that the Council needs to give financial direction and structure to Fire and in return will need some guarantees. Chair McLeod stated support for the additional revenue sources proposed by staff as well as a more robust annual report as outlined in the RCW. FORWARD TO SEPTEMBER 9, 2019 COMMITTEE OF THE WHOLE. B. Resolution: Fire Department Fee Schedule Staff is seeking Council approval of a resolution that would update the Fire Department fee schedule by adjusting current fees and adding new fees to more closely align with other jurisdictions in the region. Fees are intended to recover a portion of the City's costs for services such as fire permits, plan review, and inspections. At its August 12, 2019 meeting, the Committee requested staff return with a different proposal for short term permits following Councilmember Quinn's comments expressing concern about deterring the types of activities the City would in fact like to attract. The revised proposal retains short-term permit at the current fee of $25.00. Staff noted that there is some statewide movement to address permitting of food trucks and the City is monitoring that activity. UNANIMOUS APPROVAL. FORWARD TO SEPTEMBER 9, 2019 COMMITTEE OF THE WHOLE. C. Fire Department Special Operations Staff provided an overview of the special operations that the Fire Department has provided in the past as well as in the transition toward Zone 3 regionalization. Tukwila has been a leader in the state to specialize in hazardous materials and rescue efforts, responding to calls including the Oklahoma City bombing, World Trade Center emergency, and the OSO mudslide. The Zone 3 Technical Rescue Response model was formalized in 2004-2005, which organizes and coordinates responding agencies. Tukwila has a responsibility toward training and special operations as its contribution to the region. Chair McLeod asked about budgetary impacts of specialized training, and staff estimates courses cost $50,000 or less each year. Deployments are reimbursed at or nearly 100%. Chair McLeod asked about water rescue training on the Columbia River and staff responded that this was done once in 2010 during a flooding threat. Chair McLeod recommended a presentation to the full Council on July activities. DISCUSSION ONLY. Finance Committee Minutes August 26, 2019 D. June 2019 Departmental Budget-to-Actuals Report Staff presented the Committee with the June 2019 Financial Report, which describes the general state of departmental expenditures and highlights significant trends. General Fund expenditures totaled $33.3 million as compared to the allocated budget of $33.2 million. The allocated budget reflects year-to-date spending patterns of the previous year. Significant unbudgeted events include the Andover Park East propane leak, the East Marginal Way power pole accident on April 5 and the February snowstorms. The party responsible for the propane system was billed $21,707 in August to reimburse the city. The City filed a claim with the Washington State Cities Insurance Authority for reimbursement of the expenditures associated with the power pole incident, and partial payment has been received with the balance coming in later. DISCUSSION ONLY. III. MISCELLANEOUS Adjourned at 6:37 p.m. Committee Chair Approval Minutes by LH, Reviewed by VC