HomeMy WebLinkAbout2009-07-07 Finance and Safety MinutesFINANCE AND SAFETY COMMITTEE
Meeting Minutes
July 7, 2009, 5:00 p.m.; Conference Room #3
City of Tukwila
Finance and Safety Committee
PRESENT
Councilmembers: Pam Linder, Chair; Joan Hernandez (sitting in for Joe Duffle) and De' Sean Quinn
Staff: Shawn Hunstock, Nick Olivas, Don Tomaso, Mary Miotke, Don Lincoln, Rhonda Berry and
Kimberly Matej
Guests: Chuck Parrish and Jeremy Eide
CALL TO ORDER: Chair Linder called the meeting to order at 4:59 p.m.
I. PRESENTATIONS
No presentations.
II. BUSINESS AGENDA
A. Ordinance Amending TMC Section 3.32 Increase in Purchasing Limits and Allow for Declarations of
Emergency
Based on a request made by the Finance Safety Committee (see minutes dated June 2, 2009), staff is
returning to Committee seeking full Council approval of an ordinance amending and adding to the
Tukwila Municipal Code (TMC) in the following two areas:
1) Amend TMC 3.32.030 increasing the City purchasing limit, any amount above which, will
require Council approval;
2) Add TMC 3.32.050 allowing for declaration of an emergency per the requirements of the Revised
Code of Washington (RCW) 39.04.280(3).
In regards to the amendment (number 1 above), the TMC currently requires that any City expenditure
over $25,000 be approved by the City Council. This amount has remained unchanged since 1978. Staff is
recommending that this amount be increased to $40,000 in order to streamline City financial processes.
Shawn Hunstock reviewed additional checks and balances, limits and audit guidelines that will continue
to ensure City financial processes are secure and transparent (i.e.: Mayoral approval of all purchases over
up to $25,000, or $40,000, if changed; and continued voucher review by Councilmembers). Additionally,
as of July 26, 2009, certain public works bid laws will take effect, increasing bid limits to $40,000.
Increasing the City limit for all purchases to $40,000 from the current $25,000 will assist in encouraging
consistency and preventing confusion in the purchasing process.
The second item above, is an addition to the TMC, which will allow for appropriate purchases over the
TMC required amount for Council approval when an emergency situation occurs as defined by RCW
39.04.280(3). Specifically, this will allow City departments to respond to natural disasters and other such
emergencies efficiently without the requiring prior Council approval to make respective purchases, etc.
Committee members were supportive of the addition to the TMC regarding emergency declarations (item
number 2). However, they felt additional full Council discussion was needed for increasing the limit of
purchases requiring Council approval. Therefore, this item will move forward to Council without a
Committee recommendation. UNANIMOUS APPROVAL. FORWARD TO JULY 13 COW FOR
DISCUSSION.
B. Cascade Water Alliance Bond Sale Resolution and Continuin¢ Disclosure Agreement
Staff is seeking full Council approval of a resolution authorizing the Mayor to sign two certificates
relating to the 2009 Cascade Water Alliance (CWA) bond.
Finance Safety Committee Minutes July 7, 2009 Page 2
Cascade Water Alliance will be issuing approximately $96 million dollars in bonds for the purchase of
Lake Tapps and for the settlement of water rights issues. As a member of Cascade Water, the City of
Tukwila must give approval to continue providing disclosure of certain information which is required by
the bond purchase agreement as well as provide financial and operating information for CWA's official
statement.
Rates already include repayment of this debt, meaning this item will not result in an additional increase in
water rates. UNANIMOUS APPROVAL. FORWARD TO JULY 13 COW FOR DISCUSSION.
C. Proceeds Distribution Hold- Harmless Agreement for Sale of Jail Administrative Group (JAG) Property
Staff is seeking full Council authorization for the Mayor to sign a Proceeds Distribution and Hold
Harmless Agreement with the City of Bellevue for the recent sale of the Jail Administrative Group owned
property located in Bellevue.
Originally purchased jointly by JAG cities, this property is no longer needed for its intended purpose and
was sold earlier this year. In order to receive the funding disbursement from this sale, all JAG cities must
sign this Proceeds Distribution and Hold Harmless Agreement. This Agreement establishes the
appropriate use of proceeds and consequences for misuse. It is estimated that the City of Tukwila will
received approximately $287,000, all of which will be utilized for expenses relative to the SCORE jail
(this funding must be used for jail purposes). UNANIMOUS APPROVAL. FORWARD TO JULY 13
COW FOR DISCUSSION.
D. Fire Department
Staff is seeking full Council approval to purchase mass casualty supplies (including: tools, trailers,
equipment and medical supplies) from various vendors in the amount of $222,053.35.
The funding for this purchase will come from the Fire Equipment Cumulative Reserve (Fund 107).
Several years ago Sound Transit provided mitigation of approximately $1.5 million to the City for Fire
Department purchases relative to the light rail project. The Fire Department has utilized portions of the
mitigation to purchase such items as an aerial truck, fire hose and equipment all of which will assist with
emergency responses involving link light rail. Approximately $328,000 remains from the original
mitigation payment.
Committee members requested several clarifications be made to the information memo which will go to
full Council:
Clarify the funding mechanism as South Transit mitigation funds
Provide a grand total of the funds being requested reflecting the complete expenditure
Give a brief history which shows the amount of funding the City received from Sound
Transit, and what items have been purchased and respective costs.
Staff further explained the rotation schedule for mass casualty supplies and equipment specifications and
that state approved bidders' list. UNANIMOUS APPROVAL. FORWARD TO JULY 13 COW FOR
DISCUSSION.
E. Sales Tax Report: April 2009
Shawn Hunstock reviewed the April Sales Tax Report, noting that numbers showed a minimal
improvement. Sales tax receipts continue to be below budget for the year. If receipts continue to remain at
this level, the City may need to consider other options for addressing such financial issues.
INFORMATION ONLY.
III. MISCELLANEOUS
Acting Committee Member Hernandez mentioned blogs that are utilized by the Seattle Police and Fire
Departments and circulated front page samples of each. She commented that she would like to see the
Finance Safety Committee Minutes July 7, 2009 Page 3
City's fire and police departments utilize this sort of tool. In response, Rhonda Berry reported that the City
is currently taking a global look at such social media relative to the City and the technical support impacts
and public records implications of using this type of communication.
Meeting adjourned at 5:56 p.m.
Next meeting: Tuesday, July 21, 2009 5:00 p.m. Conference Room #3
F SL- Committee Chair Approval
Minutes by KAM. Reviewed by SH.