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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.