02/29/2016 - MinutesCity of Port Orchard
Council Finance Committee
A meeting of the Council Finance Committee was held at City Hall on Leap Day February 29,
2016 at 7:30 p.m.
PRESENT: Members John Clauson, Beck Ashby, Shawn Cucciardi, Mayor Putaansuu, City
Clerk Brandy Rinearson, Treasurer Martin, and Citizen Nick Whittleton.
Members acted upon choosing a committee chair. Ms. Ashby moved, and Mr. Cucciardi
seconded that Mr. Clauson be nominated Finance Committee Chair. The question being called,
and vote taken, result unanimous decision. Chairman Clauson called the meeting to order at 7:35
a.m.
Finance Report
The sales tax revenue report was presented and discussed. Collections for the two months of 2016 are
$54,080 or 6.79% above projection. Year-to-date collection is $796,990. A general discussion on sales
tax, collection periods, and projections ensued. Traditional cash flow trends include the April and
October property tax collections. Real Estate Excise Tax collection is an indicator of local economic
activity. REET collection is reported at each meeting.
Seitel Network Assessment: The information technology Seitel Network Assessment report was
presented. Mr. Martin outlined the process and explained what was learned from the consultant. A staff
memo focused on report highlights including short term remedies and long tenn fixes. None of the fixes
have been put out to bid and amounts included in the staff narrative are meant as a starting point to
discover actual costs. Member Cucciardi noted that private sector technology costs have come down over
time. Committee members are generally aware of the need to address IT issues and needed upgrades and
hiring Seitel was the first step in the process. Members will review the Assessment report; with Mr.
Martin offering to contact the consultant should members seek specific clarification or answers. Staff was
directed to provide the report to council in concert with a Work Study Session on the subject.
Biennial budgets: Over past budget processes staff and council have contemplated ways to focus on the
most pressing financial challenges. Biennial budgets authorized in Chapter 35.34 RCW are one idea that
has been discussed to free up time for important issues. With a biennial budget the "off-budget year" can
be used to develop long-range financial strategies, focus on capital projects, conduct studies, and work on
improving performance management. In anticipation of a biennial budget the City adopted a separate
operating and capital budgets for 2016
In order to begin budgeting on a biennial basis for 2017 -2018 the City Council would need to pass an
ordinance prior to June 30, 2016 stating their intent. Committee comments were positive and directed the
topic of biennial budgeting to move to a Work Study Session for discussion and contemplation.
Committee priorities; transportation: Staff requested members give some thought to what infonnation the
committee would find useful in their oversight role. Springbrook report writer provides the ability to
customize and standardize finance reports. The topic of adequate financial infonnation will be revisited
as the committee and staff continues its work.
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An updated Tremont Widening -Funding Partnership and funding options schematic was presented.
Members inquired on the status of the Pavement Management System (PMS) study and report. Approval
with a PMS consultant vendor will come before council in March. The Transportation Benefit District
was discussed and the need to move forward on the topic of imposing vehicle license fees. Mr. Martin
asked the members to consider what transportation discussion materials the committee may desire.
Mayor Putaansuu, along with staff, will be meeting with the city bond attorney and a representative of
DA Davidson in a question and answer format to discuss transportation debt financing later this month.
fuformation will be brought back to the committee.
Administration
Furnishings: Mayor Putaansuu shared his observation that furnishings are at the end of their
useful life with some chairs over 30 years old. As part of the next budget process he will be
addressing the need for scheduled replacement of obsolete and failing furnishings within city
hall.
City Hall Assessment:
The architectural firm Rice Fergus Miller provided a letter agreement to provide professional architectural
and design services for potential work at City Hall. The letter outlines three separate pieces of services,
which can be conducted independently or together.
Facilities exterior condition and repair assessment; facility space needs assessment; and facilities
expansion preliminruy concept design. Mayor Putaansuu proposed entering into an agreement for
condition and repair assessment, and space needs assessment. Once those two portions are completed the
city can make a decision on whether or not to move to a facility expansion preliminary concept design.
The budget contains $34,000 for this work. The fees for the two pieces recommended total $10,350. The
preliminruy concept design is an additional $16,000. Together these amounts are below budget. The
committee supported the Mayor's recommendation. A professional services contract will be brought
before council.
Building Construction Activity:
Area building activity has heated up with Department of Community Development working to
keep pace with permit and plan review demand. A recent sale of development property should
result in permit requests reaching 175 this year. Additional staffmg requests may result with
Mayor Putaansuu cautioning that should activity cease or slow down a corresponding reduction
in the number of FTE would need to take place.
City Clerk:
The committee reviewed a Master Services Agreement with WEBQA for a public records request service
platform that captures all requests received via letter, website, email, fax, or walk-in. Clerk Rinearson
outlined the salient portions of the agreement and answered specific questions raised during a city council
meeting. The agreement was directed to the committee to answer a number of questions. 1) Why pay the
fee to purchase the data back upon termination of the agreement. Clerk Rinearson explained that the
option to purchase the data would not be beneficial to the City. Staff would extract the data from the
program before the termination date. 2) Confirm the increase rate and effective dates of the agreement. It
was explained that the first increase would occur on April 181 of every year, starting April 1, 2017. The
termination of the agreement would be March 31, 2019. 3) If they offer a reduced annual increase rate for
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a longer term contract. The company provided a 3 year contract with an annual increase of up to 3 %, after
the first year. The committee recommended sending the issue back to the City Council as a business item
seeking approval.
The meeting was adjourned at 9:00 a.m.
Next meeting
March 28, 2016 7:30 am Council Chambers meeting room