Agenda FINANCE COMMITTEE - REGULAR MEETING Executive Briefing Room - Plaza 111, Sammamish City Hall June 16, :00 12:00 PM
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1 th Avenue SE Sammamish, WA Phone: Fax: Web: 1. Call to Order Agenda FINANCE COMMITTEE - REGULAR MEETING Executive Briefing Room - Plaza 111, Sammamish City Hall June 16, :00 12:00 PM 2. Approval of the Meeting Minutes May 22, Public Comment 4. Facility Maintenance a. City Hall Door Replacement 5. Personnel a. Recreation Supervisor Re-Classification b. Update on Classification & Compensation Study 6. Capital & Infrastructure a. Transportation Improvement Plan (TIP) Follow-up from 6/13 City Council Meeting b. Update on Surface Water Management Rate Study 7. Finance Retreat a. Update on Virtual Town Hall Responses 8. Other a. City Council Compensation Discussion and Recommendation b. EF&R Emergency Funding Mechanism Discussion and Recommendation 9. Future Meeting Topics a. Surface Water Management Rate Study & Capital Plan Ongoing b. Mid-Biennial Budget Update 3 rd Quarter 2017 c. Classification & Compensation Study 4 th Quarter 2017/1 st Quarter 2018 d. Parks Capital Planning Discussion - 4 th Quarter 2017 e. Facilities & IT Capital Planning Discussion 1 st /2 nd Quarter Next Meeting Date(s) a. September 14 and/or November Adjourn Meeting 1
2 th Avenue SE Sammamish, WA Phone: Fax: Web: Public Comment Guidelines: This is an opportunity for the public to address the Committee. For non-agenda items, three (3) minutes are granted per person, or five (5) minutes if representing the official position of a recognized community organization. Seven (7) minutes are granted per person for agenda items. If you are submitting written material, please supply a minimum of four (4) copies (three (3) for the Committee; one (1) for the record). If you would like to show a video or present a PowerPoint, please contact Tammy Mueller (tmueller@sammamish.us; ) to determine whether the meeting room is equipped to accommodate this. All videos and PowerPoint presentations must be submitted or ed by 5:00pm the day prior to the meeting to Tammy Mueller. Please be aware that all materials submitted will become part of the public record. Meeting Accessibility: Committee meetings are wheelchair accessible. American Sign Language (ASL) interpretation is available upon request. Assisted Listening Devices are also available upon request. Please call (425) at least 48-hours in advance to request assistance. 2
3 Item #2 Meeting Minutes City of Sammamish Finance Committee Monday, May 22, :30 a.m. Executive Briefing Room - Sammamish City Hall Called to Order: Committee Chair Kathy Huckabay called the meeting to order at 10:32 a.m. Committee Members Present: Kathy Huckabay (Chair) Tom Odell Christie Malchow Committee Members Absent: none Staff Present: Others Present: Aaron Antin, Finance Director Steve Leniszewski, Public Works Director Chris Gianini, Deputy Finance Director Mary Wictor, Citizen Paul Stickney, Citizen Public comment: Mary Wictor expressed her hope that unspent, budgeted Stormwater funds would either be carried forward to 2017 or remain in the Stormwater Fund for future use. Mary asked if there was an abatement fund to purchase abandoned or unused property in the city. Kathy responded that there is money budgeted for land acquisition. Paul Stickney will be offering information to the City Council on the housing balance in Sammamish. A discussion followed among the committee members about the history and forecasting for REET. A copy of the most recent REET report will be sent to the Finance Committee members. Approval of meeting minutes: No comments or corrections were noted. The meeting minutes from April 6, 2017 were approved Draft Transportation Capital Improvement Plan-Financial Considerations: Aaron presented the draft TIP for discussion. Upon request, the adopted TIP was distributed for comparison. Committee members asked for an explanation of why the total cost of SE 4 th Street increased from the prior 6-year TIP. Steve will prepare an explanation of the change for the presentation of the TIP in June. The Committee requested more clarity in the funding section of the TIP to show the portion of TR02, Issaquah-Pine Lake Road Phase 2, that can be funded with impact fees. Parts of some TIP projects will be built by developers and contributed to the city such as Issaquah-Pine Lake Road in front of the Connor Jarvis development. Potential developer built transportation contributions will be included in future transportation project cost estimates and corresponding presentations. Aaron commented that the $1.2 million operating transfer through 2020 was originally intended to be for debt service payments. These transfers are anticipated to stop in 2020 as the city reaches the projected operating cross-over point. If debt for transportation projects has been issued, another source of debt service payments will need to be identified. The committee requested information be included in the Financial retreat on what dollar magnitude of projects could be built if debt were issued and how much debt would $1.2 million per year pay for.
4 Plan to Address City Council Compensation: A table of City Council compensation from 15 Western Washington cities was discussed. Most of the information in the table was taken from a Council Compensation Study undertaken and published by the City of Bellevue in December The calculation of 2017 Sammamish Councilmembers pay based on applying the CPI-U since the last time there was an increase in 2002 will be sent to Finance Committee members in preparation for discussion at the next committee meeting. The increases will be calculated on both an annual CPI-U basis and a rolling 4-year average CPI-U basis. Finance Committee Review of City Manager s Emergency Funding Authority Related to EF&R: The Sammamish Emergency Manager will be asked to recommend to the Finance Committee what authority the City Manager will have to authorize funding to EF&R in emergencies. Future meeting topics: TIP follow-up City Council compensation recommendation from the Finance Committee to the full Council Virtual Town Hall on Finances results SWM Rate Study update Pre Council Finance retreat information and feedback Next Meeting: June 16, 2017, 10:00 a.m. to noon. Meeting Adjournment: The meeting adjourned at noon. Item #2
5 2017 STAFFING ADJUSTMENTS FORM Item #5a City of Sammamish Fund General Fund Dept. Parks and Recreation (1) Request to add a new position: Position Title and Pay Grade: Recreation Manager Grade O Explanation provided below. (2) Request to delete a position: Position Title and Pay Grade: As a result of creating the new Recreation Manger position, the Recreation Coordinator position (currently vacant) will be eliminated (Grade L). Recruitment for the Recreation Manager position will be an open process. The City s recreating programming and facility rental program has experienced significant growth over the past years, due to continued program expansion and growth as well as the City s 2016 annexation. Over the years the city s special events continue to grow in both program complexity and attendance, as well as the number of directly provided events increasing to 53 with another 14 the city partners with other providers. The City s largest special event, 4 th on the Plateau, can have as many as 10,000 spectators. The facility rental and reservation program has grown to nearly $500,000 in revenues and include year-round scheduling of six athletic fields, the Lodge at Beaver Lake, Beaver Lake Pavilion and five Shelters. Another matter is the city s Arts Commission, which is currently housed within the Finance Department but is being staffed by the MOC Administrative Assistant which makes supporting the Commission somewhat challenging. The work, programs and staff support of the Arts Commission are better suited within the Parks & Recreation Department. Under this proposal, the Recreation Manager would be more qualified and capable of managing the growth in the recreation programs and facility rentals and would staff and support the Arts Commission. The Recreation Manager would also supervise the Recreation and Volunteer Coordinators and their respective programs, as well as the Lifeguarding program and Interns. The new Recreation Manager will take on the following responsibilities: Management of the Recreation Division, the Volunteer Division and the Health and Wellness Division. Staff and support the City s Arts Commission and related work plan. Develop and administer program budgets; track revenue and expenditures; recommend adjustments; and, establish revenue goals. Plan, organize, coordinate, assign and evaluate the work of employees (full-time and part-time/seasonal); provide training and counseling as
6 Item #5a needed; and, maintain all personnel and financial records. Contract for services with suppliers, vendors and organizations; monitor contract performance; and, decide on all purchases of recreation equipment and major supplies. Coordinate program activities with other departments, community groups, schools, non-profits and service area organizations. This includes management of all department partnerships (Sammamish Symphony, Heritage Society, Farmers Market, Nightmare at Beaver Lake, etc.) and the special event sponsorship program. Seek out community feedback on all programs, services and events and ensure timely response to all inquiries, concerns and complaints. Takes corrective action as needed to ensure community needs are met through current and future program and service offerings. Assures compliance with all legal, safety and health regulations and guidelines. Participates in short and long-range planning to enhance or improve programs and services. Provides thorough analysis and prepares written reports for the Director, Deputy Director, City Manager, Parks & Recreation Commission, City Council and others as needed. Prepares various recommendations for recreation programs, events and other services offered by the department. Attends and presents to Parks & Recreation Commission and City Council meetings as needed. Serves as department staff in support of the Arts Commission. Oversees department marketing to include preparation and production of news releases, the Department s city website, social media marketing, technical presentations, newsletter articles, flyers and posters, the Recreation Guide and other promotional items and processes. Reviews, evaluates and develops policies for recreation activities, facility rentals, and recreation programs. Serve as the city liaison to inter-governmental partnerships. Oversee all major city special events (i.e. Rigapalooza, Fourth on the Plateau, Sammamish Days, Very Merry Sammamish and Volunteer Recognition Dinner). Given all of this information, we are recommending the creation of a new position: Recreation Manager and elimination of the existing, but vacant, Recreation Supervisor position. This re-classification will provide additional management and operational capabilities for the city s expanding recreation programming and facility rentals and will assume the staffing role for the Arts Commission and its programs. An analysis of internal and external positions was completed and the recommendation is to place this position at Grade O. This pay grade is consistent with the other management positions within the city such as Communications, Emergency and Project Managers and is comparable to the pay grades of similar positions in nearby jurisdictions. (See Attached Recreation Manager Position Salary Analysis) The salary range difference is at Grade L of the Recreation Supervisor position at $63,229 - $86,533 compared to Grade O of the Recreation Manager at $77, ,413. The range delta is $13,795 $18,880.
7 Item #5a Recreation Manager Position Salary Analysis Comparison to Eastside Cities City Position Population* Low Range High Range Bellevue Community Services Supervisor 135,000 $ 6,811 $ 9,397 Kirkland Recreation Manager 83,460 $ 7,419 $ 9,572 Redmond Recreation Division Manager 59,180 $ 8,461 $ 11,157 Issaquah Recreation Supervisor 33,330 $ 7,879 $ 10,059 Mercer Island Recreation Superintendent 23,480 $ 8,263 $ 10,667 Average $ 7,767 $ 10,170 Comparison to Other Cities Proposed Grade O $ 6,419 $ 8,784 City Position Population* Low Range High Range Burien Recreation Manager 48,810 $ 7,567 $ 9,198 Covington Recreation Manager 18,500 $ 7,311 $ 8,729 Edmonds Recreation Services Manager 40,490 $ 7,107 $ 9,524 Lynnwood Recreation Supervisor 36,420 $ 6,424 $ 8,127 Maple Valley Recreation Manager 24,700 $ 6,492 $ 8,253 Olympia Program Manager 51,020 $ 6,642 $ 8,075 Puyallup Recreation Program Supervisor 38,950 $ 5,008 $ 6,509 SeaTac Recreation Supervisor 27,650 $ 6,030 $ 7,719 Tukwila Recreation Superintendent 19,300 $ 7,643 $ 9,291 Average $ 6,691 $ 8,381 Proposed Grade O $ 6,419 $ 8,784 *2015 Population 2015 AWC Salary Survey with COLAs of 1.93% from 2015 to 2016 and 1.7% from 2016 to 2017
8 Item #6b City of Sammamish Stormwater Rate Study Status Report June 16, 2017 John Ghilarducci
9 Rate Study Process POLICY FRAMEWORK Operating Budget RATE ANALYSIS CIP Item #6b IP#1 Fiscal Policies IP#3 Transportation Projects IP#2 Evaluate Rate Design Revenue Requirement Development Charges Rate Design IP#4 Rate Credits Outreach Documentation FCS GROUP Page 2
10 Annual Service Charges Item #6b Annual Service Charges Residential $225 per parcel Non-Residential 2. Very Light Less than 10% impervious $225 per parcel 3. Light 10.1% to 20.0% impervious $524 per acre 4. Moderate 20.1% to 45.0% impervious $1,086 per acre 5. Moderate Heavy 45.1% to 65.0% impervious $2,073 per acre 6. Heavy 65.1% to 85.0% impervious $2,650 per acre 7. Very Heavy 85.1% to 100.0% impervious $3,474 per acre FCS GROUP Page 3
11 Development Charges Item #6b Development Charges (per SMC 13.15) New Residential dwelling $1,491 New Commercial building up to 2,500 sq ft impervious coverage $1,491 Each additional 250 sq ft impervious coverage $ Other Structures / Additions up to 250 sq ft impervious coverage requiring building permit $ $ per 250 sq ft FCS GROUP Page 4
12 Item #6b FCS GROUP Solutions-Oriented Consulting Agenda City of Sammamish 2017 Stormwater Rate Study: Issue Papers Finance Committee June 16 th, 2017 Representatives from FCS GROUP: John Ghilarducci, Principal Fiscal Policies o Operating reserves o Capital reserves o Debt reserves & debt service coverage City has two KC Surface Water Bonds; mature in 2019 and 2021 o System reinvestment (preservation) funding Rate Structure Alternatives o Impervious Surface Area Current approach ESU approach o Density of Development o Runoff Coefficients or Land Use o Trip Generation Funding a Share of Transportation Projects o How to determine stormwater share of transportation projects? o Does actual transportation spending match budget? o Do other jurisdictions fund a share of transportation projects? Rate Credits Firm Headquarters th Ave. NE., Suite D-215 Redmond, Washington Locations Redmond, WA Lake Oswego, OR
13 Item #6b o Meeting or exceeding on-site requirements o Base v. use concept
14 Item #7 Virtual Town Hall on City Finances Summary: 313 visitors to Virtual Town Hall 164 responses (101 registered/63 non-registered) Equivalent (at 3 minutes per response) to 8.2 hours of public testimony This Virtual Town Hall closes on June 23
15 Item #7 Should the city diversify its revenue sources by adding a new tax? Yes No 27.6 percent 72.4 percent Would you be willing to pay more in taxes so the city could buy land and protect it from development? Yes No 39.8 percent 60.2 percent Would you be willing to pay more in taxes so the city could build and improve roads more quickly? Yes No 32.3 percent 67.7 percent If necessary, would you support the issuance of bonds so the city could fund some of its priorities with debt? Yes No 53.1 percent 46.9 percent Would you be willing to vote for higher property taxes to pay off those bonds? Yes No 26.8 percent 73.2 percent
16 Item #7 Should the city leave revenues where they are and spend within or under those limits? Yes No 71.3 percent 28.7 percent Should the city increase its revenues so investments in roads, land preservation and other priorities can be funded more quickly? Yes No 43.3 percent 56.7 percent Sampling of verbatims: Stop costly projects...freeze new construction Current services seem about right Add senior services Focus on the roads More public transportation... more restaurant and food options Add more traffic enforcement Help the homeless Improve infrastructure Lay off city staff More parks and trails Buy land to prevent development More sidewalks No new taxes Wider roads Spend less money Protect trees Spend within our means Increase developer fees Tax only the richest Increase property taxes No more vehicle taxes Read my lips, no new taxes!...add utility tax I would trade money for less development Increase public transportation Use impact fees We shouldn t have wasted money on the Community Center I will gladly pay more taxes for road improvements Live within your means Roads, roads, roads Debt builds debt Interest rate is low No more debt!...no new taxes Reduce spending Use impact fees Live within your means, enough is enough
17 Item #7 Contrast those results with feedback from our random, statistically valid community survey: Would you support or oppose the raising of taxes if it allowed the city to more quickly build new roads and improve existing roads? 64 percent would strongly (23) or somewhat (41) support raising taxes Would you support or oppose the use of tax revenue to buy land, preserve trees and protect open space? 86 percent would strongly (54) or somewhat (32) support using tax revenue
18 Item #8a City Council Compensation Proposals June 16, 2017 Finance Committee Meeting Method 1: 2017 salaries if Council had received the same COLA as City employees since 2003 Councilmember $1,167 per month Mayor $1,304 per month Method 2: 2017 salaries if Council had received annual COLAs equal to CPI-U since 2003 Councilmember $1,169 per month Mayor $1,307 per month Effective Date: January 1, 2020 for all Councilmembers to receive the same salary. To increase Council salaries effective 1/1/2020, Council will need to pass an ordinance prior to the election of new Councilmembers in The ordinance should include the method of calculating the salaries for 2020 and the method to increase salaries in subsequent years. Proposed Actions: 1. Council and Mayor salary recommendation from the Finance Committee to the full Council. 2. Council direction to staff to prepare an ordinance for the recommended change in Council and Mayor compensation.
19 Eastside Fire & Rescue Emergency Spending Authority Item #8b Emergency Declared Operational Financial Financial Need $ Partner Share (as determined by current year partner contribution allocation) Issaquah North Bend Sammamish D10 D38 Percentage % % % % % Amount $ $ $ $ $ Operational Emergency In accordance with Eastside Fire & Rescue (EF&R) Board of Directors Administrative Policy 0002 (Budget Management and Reserve Policies) the Fire Chief has enacted the Emergency Spending Authority granted by the EF&R Board. See the attached documents: 1 P a g e Operational Emergency Justification Fire Emergency Reserve Fund Partner Certification In the event of an operational emergency (e.g. natural disaster, local wildland interface), The Chief shall have emergency spending authority to utilize monies from all available funds and reserves to ensure the continuation of emergency service delivery. The Chief will notify the Board Chair of the expenditures made during the course of the emergency as soon as possible. Each partner will ensure that funds are pre-designated and immediately available to EF&R in the event of an operational emergency. Following an Emergency Declaration from the Chief each partner shall make immediately available their designated fire emergency reserve funds. Emergencies that elevate to a King County and/or State Declaration of Emergency will be documented in a manner consistent with FEMA reimbursement policies.
20 Eastside Fire & Rescue Emergency Spending Authority Item #8b Financial Emergency In accordance with Eastside Fire & Rescue (EF&R) Board of Directors Administrative Policy 0002 (Budget Management and Reserve Policies) the Fire Chief has declared a financial emergency as defined below. In the event of a financial emergency (e.g. large number of unplanned retirements), the Chief shall notify the Board Chair of the impact to the Agency and service delivery concerns. Once the Chief recognizes that a financial emergency is going to exceed internal budget and contingencies he/she will notify each partner in writing. Upon receipt of the notification of the financial emergency the partner will place an agenda item on their next governing board agenda for approval to fund their proportional share (as described in the ILA) of the financial emergency. Eastside Fire & Rescue recommends the following motion language be utilized by each partner for funding approval: Move to approve a payment in the amount of $XXXX.XX to Eastside Fire & Rescue due to a financial emergency declared by the Fire Chief in accordance with Eastside Fire & Rescue Board of Directors Administrative Policy 0002 (Budget Management and Reserve Policies) Additionally, please see the attached document: Financial Emergency Justification Fire Chief Signature Date 2 P a g e
21 Eastside Fire & Rescue Emergency Spending Authority Item #8b Fire Emergency Reserve Fund Partner Certification In accordance with Eastside Fire & Rescue (EF&R) Board of Directors Administrative Policy 0002 (Budget Management and Reserve Policies) each partner will ensure that funds are pre-designated and immediately available to EF&R in the event of an operational emergency. Following an Emergency Declaration from the Chief each partner shall make immediately available their designated fire emergency reserve funds. The undersigned do hereby certify their city or fire district has policy and funding to accommodate Eastside Fire & Rescue Board of Directors Administrative Policy City of North Bend KCFPD #10 City of Issaquah Fire District 38 City of North Bend 3 P a g e
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