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Home My WebLink AboutFIN 2020-10-12 COMPLETE AGENDA PACKET  The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk ’s Office at 206-433-1800 (Tukwi laCityClerk@TukwilaWA.gov) for assistance. City of Tukwila Finance Committee  Verna Seal, Chair  Kathy Hougardy  Zak Idan Distribution: V. Seal K. Hougardy Z. Idan D. Quinn K. Kruller T. McLeod C. Delostrinos Johnson Mayor Ekberg D. Cline R. Bianchi C. O’Flaherty A. Youn L. Humphrey AGENDA MONDAY, OCTOBER 12, 2020 – 5:30 PM HAZELNUT CONFERENCE ROOM (At east entrance of City Hall) THIS MEETING WILL NOT BE CONDUCTED AT CITY FACILITIES BASED ON THE GOVERNOR’S PROCLAMATION 20-28. THE PHONE NUMBER FOR THE PUBLIC TO LISTEN TO THIS MEETING IS: 1-253-292-9750, Access Code 822073961# Item Recommended Action Page 1. BUSINESS AGENDA a. Report from the Public Safety Bond Financial Oversight Committee. Andy Reiswig, Chair of the Public Safety Bond Financial Oversight Committee. Laurel Humphrey, Legislative Analyst b. Discussion on a resolution to discontinue a temporary pay reduction for non-represented employees based on a budget shortfall associated with the Coronavirus pandemic. Vicky Carlsen, Finance Director 2. MISCELLANEOUS a. Discussion only. b. Forward to 10/12 C.O.W. and 10/19 Regular Mtg. Pg.1 Pg.5 Next Scheduled Meeting: Monday, October 26, 2020 CITY OF TUKWILA PUBLIC SAFETY BOND FINANCIAL OVERSIGHT COMMITTTEE Report to the City Council August 2020 On behalf of my fellow members, I am pleased to present you with the first 2020 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 met on August 11, 2020. Pursuant to Ordinance 2509 and Resolution 1892, during this meeting 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. The Oversight Committee has to date reviewed bond expenditures through July 31, 2020 and and finds that these expenditures are in compliance with the purposes of the Public Safety Bond. Draft minutes of the meeting is attached to this report. The Committee appreciates this opportunity and we look forward to our continued relationship with the City Council. Attachments: Draft August 11, 2020 Committee Meeting Minutes 1 2 1 City of Tukwila Public Safety Bond Financial Oversight Committee April 11, 2020 Virtual Meeting due to COVID-19 Emergency 4:00 p.m. MINUTES I. Call to Order II. Roll Call Committee members: Sean Goode, Jessica Jerwa, Andy Reiswig, Jovita McConnell Absent: Randy Coplen Staff present: David Cline, Laurel Humphrey, Vicky Carlsen, Aaron Williams III. Approval of Agenda The agenda was approved by unanimous consent. IV. Approval of Minutes The November 5, 2019 meeting minutes were approved by unanimous consent. V. New Business a. Election of Chair and Vice-Chair Mr. Reiswig was elected to serve as Chair and Ms. McConnell was elected to serve as Vice- Chair. b. Public Safety Plan Project Update Staff presented an overview of the Public Safety Plan status and projects. The Justice Center and Station 51 are nearing completion with final inspections scheduled. Station 52 is on schedule with driveway grading and paving scheduled in August. All projects are within approved budget. c. Public Safety Plan Financial Overview The Committee reviewed the original and revised revenue and expenditure budgets for the Public Safety Plan. The total for actual and projected revenues is $147,948,100. d. Expenditure Report The Committee reviewed actual Public Safety Plan expenditures through July 31, 2020. Actual expenditures through July 31 are $91,554,309. 3 2 e. Report to Council The Committee reviewed a draft Report to Council and agreed that expenditures met the purposes outlined in the bond measure. Mr. Reiswig will work with staff to coordinate presenting the report to the Finance Committee. f. Meeting Schedule The Committee agreed to meet again in November, tentatively November 17, 2020 VI. Miscellaneous VII. Adjournment The meeting was adjourned at 4:32 by unanimous consent. Minutes by LH 4 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Vicky Carlsen, Finance Director CC: Mayor Ekberg DATE: October 7, 2020 SUBJECT: A Resolution to Repeal Resolution No. 1988 ISSUE Resolution 1988 instituted a 10% pay reduction for specific staff members, as well as a 10% furlough for all other non-represented staff. Because the City is in better financial shape than was contemplated when Resolution 1988 was passed, and the City has the desire to return all affected staff to full time and compensation, Resolution 1988 must be repealed. BACKGROUND As the City approached how to mitigate the revenue losses associated with the pandemic, one tool that was used was furloughs and pay reductions. It was always the goal of the City to use furloughs rather than layoffs to achieve expenditure reductions. Three Teamsters bargaining units voted for furloughs; one chose layoffs. Non-represented staff were furloughed at a 10% pay reduction with a corresponding 10% reduction in work hours via Resolution 1988, which also specified 12 positions that received a 10% pay reduction with no reduction in work hours. DISCUSSION Because the City acted quickly and used many tools to address the pandemic-associated revenue reductions, the City is in better financial shape today than was anticipated when Resolution 1988 was passed. By freezing open positions, restricting the use of overtime, reducing general fund transfers to fleet, suspending temporary labor, restricting travel and other savings, the City saved considerable expenditures. In addition, revenues – while still down from pre-pandemic times – have returned at a faster rate than expected in May of this year. Returning everyone to full time will benefit the Tukwila community and will ensure a higher level of service for our residents, businesses and guests. It will increase timeliness for questions, permits and other matters and allow for additional work to be prioritized. While City facilities largely remain closed due to the pandemic, discontinuing the furloughs will allow the City to return to normal business hours to serve the community. It will also be a great help for the employees who have worked diligently and creatively through these difficult times with fewer hours in the week and compensation. The City Council sets the pay scale for non-represented staff. This is why Resolution 1988 only covers non-represented City staff, and the Council must repeal the resolution in order to take non-represented staff off of furlough. RECOMMENDATION The Finance Committee is being asked to forward this item to the October 12, 2020 Committee of the Whole for discussion and consensus to move the draft resolution to the October 19, 2020 Regular meeting. ATTACHMENTS Draft Resolution repealing Resolution No. 1988 Resolution 1988 5 6 {KZS2285264.DOCX;1/13175.000001/ }CC:\Legislative Development\Non-rep pay reduction due to COVID-19--Repeal 10-7-20 :bjs Page 1 of 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING RESOLUTION NO. 1988 RELATING TO A TEMPORARY PAY REDUCTION FOR NON-REPRESENTED EMPLOYEES TO ASSIST WITH ADDRESSING THE BUDGET SHORTFALL ASSOCIATED WITH THE CORONAVIRUS PANDEMIC. WHEREAS, the City projected a budget shortfall in the General Fund due to lost tax revenues resulting from the coronavirus pandemic and the subsequent State-mandated “Stay Home – Stay Healthy” order; and WHEREAS, the City Council took immediate, decisive steps to address the financial impact of the pandemic, which included impacts to City personnel; and WHEREAS, to assist with addressing the projected budget shortfall of $12 million in 2020 due to lost tax revenues associated with the coronavirus pandemic, Resolution No. 1988 was adopted to reduce by 10% the base pay of non-represented employees through salary reductions or furloughs for the remainder of 2020; and WHEREAS, due to the early action of the City Council, the City’s projected budget shortfall is now $7.6 million and, due to the City’s improved financial health, the City desires to end the stated pay reduction and furloughs earlier and reinstate regular base pay and work schedules for non-represented employees starting on November 1, 2020 and for the remainder of 2020; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Effective Date. This resolution shall be effective as of 12:00 AM on November 1, 2020. Repealer. Resolution No. 1988 is hereby repealed in its entirety as of 11:59 PM on October 31, 2020. 7 {KZS2285264.DOCX;1/13175.000001/ }CC:\Legislative Development\Non-rep pay reduction due to COVID-19--Repeal 10-7-20 :bjs Page 2 of 2 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this _________ day of ____________________, 2020. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk De’Sean Quinn, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Office of the City Attorney 8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, PROVIDING FOR A TEMPORARY PAY REDUCTION OF NON -REPRESENTED EMPLOYEES TO ASSIST WITH ADDRESSING THE BUDGET SHORTFALL ASSOCIATED WITH THE CORONAVIRUS PANDEMIC, EFFECTIVE JUNE 1, 2020. WHEREAS, the City has projected a budget revenue shortfall in the General Fund of 12 million in 2020 due to lost tax revenues resulting from the coronavirus pandemic and the subsequent State -mandated "Stay Home — Stay Healthy" order; and WHEREAS, the City is taking phased steps to address the financial impact of the pandemic, which includes impacts to personnel; and WHEREAS, to assist with addressing the projected budget revenue shortfall of $12 million in 2020 due to lost tax revenues associated with the coronavirus pandemic, it is necessary to reduce the pay of non -represented employees 10% for the remainder of 2020; WHEREAS, consistent with WAC 296-128-533, deductions from the salary of a public employee for absences where authorized by law due to a budget -required leave of absence will not disqualify the public employee from being paid on a "salary basis" except in the workweek in which the absence occurs and for which the public employee's pay is accordingly reduced; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: WALegislative t evelopmenAN on -rep pay reduction due to COVID-19 5-12-20 JCP:bjs Review and analysis by Barbara Saxton Page 1 of 2 9 Temporary Pay Reduction Plan for Non -Represented Employees. A. Non -represented employees in the following positions will have a reduction in base pay equal to 10% effective June 1, 2020 through December 31, 2020: City Administrator Deputy City Administrator Public Works Director Police Chief Fire Chief Parks & Recreation Director Technology Services Director Finance Director DCD Director Human Resources Director Economic Development Administrator Municipal Court Administrator B. All non -represented employees not listed in subsection A will have a reduction in pay equal to 10% through means of either working the equivalent of a paid 36-hour work week (FLSA-Exempt) for each pay period between June 1, 2020 and December 31, 2020, or taking the equivalent of 14 furlough days (FLSA-Nonexempt) effective June 1, 2020 through December 31, 2020, PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this (61' day of 2020. ATT EST/AUTHENTICATED - Christy O'Flaherty, MMC, City Clerk De"Se/nQuinn, Council President APPROVED AS TO FORM BY: Office of the City Attorney Filed with the City Clerk. -13"2- Passed by the City Council; Resolution Number:_ W.1egislative Developrnen"Non-rep pay reduction due to COVID-19 5-12-20 JCP:bis Review and analysis by Barbara Saxton Page 2 of 210