HomeMy WebLinkAbout2012-04-03 Finance and Safety MinutesCity of Tukwila
Finance and Safety Committee
FINANCE AND SAFETY COMMITTEE Meeting Minutes
Ahril 3, 2012 5:151). m; Conferenee Roon7
PRESENT
Councilmembers: De'Sean Quinn, Chair; Dennis Robertson and Verna Seal (filling in for Bate Kiuller)
Staff: Peggy McCarthy, Joyce Trantina, Gail Labanara and Kimberly Matzj
Guests: Chuck Parrish, resident and Marie Parrish, resident
CALL TO ORDER: Chair Quinn called the meeting to order at 5:15 p.m.
I. PRESENTATIONS
No presentations.
II. BUSINESS AGENDA
A. Consultant Agreement: Citv's Strategic Plan
Staff is seeking Council approval to enter into a consultant agreement with Berk Consulting for
facilitation of strategic planning services in the amount of $119,449 plus a 10% contingency.
Joyce Trantina introduced this item, provided a brief overview of the strategic plan consultant selection
process and summarized the Agreement's scope of services and timeline. Committee Chair Quinn
inquired about the contract dollar amount as well as how it will be fimded. Staff responded that the base
price of proposals increased once the applicants explained, that statistically valid surveys would be nearly
impossible to achieve and the need for broad community outreach would be vital. It was apparent that the
selected consultant will need to conduct additional outreach in Citv_ 's diverse community which increased
the scope of service and related costs. The Agreement will be paid for with unspent funds from the
Mavor's Office 2011 -12 budget. These unspent funds are primnaiN related to salaiN savings from the
unfilled positions and CTR program fiords not spent due to the elimination of City_ -wide issued ORCA
cards.
Committee Member Robertson stated he would like to see the Agreement's scope of services reflect more
City Council involvement in the Strategic Planning process. Specifically, he recommends modifi ing
some of the scheduled Council Presentations to actually be Council Work Sessions. This will allow for
more input from and discussion among Councilmembers regarding the Plan during each stage. The
Committee was in agreement with Committee Member Robertson's suggestion, and believes that Council
involvement is extremely important to the acceptance and application of a final Plan. Additionally, the
Committee is willing to be flexible in regards to specific suggestions Berk Consulting may have regarding
these processes. UNANIMOUS APPROVAL WITH COMMITTEE RECOMMENDED CHANGES.
FORWARD TO APRIL 9 COW FOR DISCUSSION.
B. Self- hnsured Healthcare Plan Contingency Reserve
Staff is seeking Committee approval to amend existing reserve Policy No. 30u0 -15 to reflect an addition
and reference to a contingency reserve balance for the self- insured healthcare plans.
Staff discussed changes made to the Washington State Administrative Code (WAC) that became effective
in 2011 and required that IBNR (incurred but not reported) claim reserves for the City be calculated by
an independent actuai� The WAC also recommends that the governing body (in this case, the Cite)
establish an additional contingency reserve amount to this calculation. Based on research conducted by
staff, a contingency reserve amount equaling 2.5 times the actuarial calculation of the IBNR is
recommended for the Citv. Each of the self- insured plans has sufficient find balance to cover the reserve
amounts. COMMITTEE APPROVAL.
Finance Safety Committee Minutes
April 3, 2012 Paae 2
C. Increase in 2011 Indirect Cost Allocation
As information only, Finance staff reported that recently it ivas identified that the Public Works allocation
amounts had not been applied to the 2(_)11 cost allocation charges. This affected the folloNving funds: 104
Arterial Streets; 3()3 General Government Improvements; 4()1 Water; 4()2 Sewer; 412 Suiface
Water, and 501 Equipment Rental. These funds will be charged this allocation which will result in
$462,392 to the General Fund. This allocation will be applied appropriately in 2(_)12 and beyond. Staff
noted that if allocations overly_ burden a fiord, transfers from the General Fund may_ be necessai
INFORMATION ONLY.
III. MISCELLANEOUS
Meeting adjourned at 5:51 p.m.
Next meeting: Tuesday, April 17, 2012 5:15 p.m. Conference Room 4' 010
Chair Approval
Minutes by KAM.