HomeMy WebLinkAbout051214CITY OF PORT TOWNSEND
MINUTES OF THE WORKSHOP OF MAY 12, 2014
CALL TO ORDER AND ROLL CALL
The Port Townsend City Council met in workshop session on May 12, 2014 in the
Council Chambers at 540 Water Street. Mayor David King called the meeting to order
at 6:30 p.m.
Council members present at roll call were Pamela Adams, Robert Gray, David King,
Catharine Robinson and Deborah Stinson. Michelle Sandoval was excused. Kris
Nelson arrived at 7:00 p.m.
Staff members present were City Manager David Timmons, City Attorney John Watts,
Public Works Director Ken Clow, Community Services Director Rick Sepler, Interim
Library Director Bev Shelton, and City Clerk Pam Kolacy
OVERHEAD ALLOCATION
City Manager David Timmons introduced Peter Moy of FCS Group. The consultants
were hired to help the City develop a federal cost allocation plan and rate structure as
well as to respond to a State Auditor's issue concerning the City's methodology for
calculating how City administrative costs are allocated among the various City funds.
Mr. Moy reviewed the presentation "Cost Allocation Plan and Rates" which included
objectives, analytical steps and recommendations.
Discussion ensued about the cost recovery model, methodology, effect of short-term
large cost projects, details of the Federal A-87 guidelines for grant reimbursements, and
recommended time period between model updates.
Mr. Timmons stated that staff is currently working on determining the net effect of cost
recovery allocations for this year. Supplemental budgets will likely be brought forward
in June and August incorporating these numbers.
FINANCE AND BUDGET POLICIES & FIVE-YEAR FINANCIAL FORECAST
Finance and Budget Policies
City Manager David Timmons introduced the item. Mr. Jean explained that the
policies have been through the Finance and Budget Committee several times and it
was felt this version is ready to consider for adoption. He recommended having it in
place prior to the next audit, noting that it can always be amended.
Former Interim Finance Director Bob Jean "walked" through the document, with
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questions and comments from the Council as different sections were reviewed.
It was suggested that Section 7 "Transfers and Interfund Loans" contain language to
clarify what an "advance" is and how it differs from a transfer or loan. There was also
discussion about allocations vs. borrowing.
On page 8 ("Overhead Cost Recovery") it was suggested that a line be added stating
review will take place at specific time intervals, possibly every two years.
There were questions about what "Pay -As -You -Go" means (page 9). It was
suggested that the heading read: "Zero -based Operating Budget ("Pay As You Go").
During discussion, it was clarified that the Library Special Revenue Fund has its own
heading because it is the only fund with dedicated funding within the General Fund.
Some reformatting was suggested, with "Special Revenue Funds" as main header
with "Library" as a sub -heading so it does not look as though it is being singled out. It
was also suggested that the next heading (Public Safety Sales Tax....) be moved from
page 11 to page 10 so there is not a long break in the text.
Two typographical errors were noted on page 13 in the second paragraph under CIP
Finance ("form" to "from" and add "r" to City Manage).
Information on debt capacity emergency reserve (page 4) should also be referenced in
the Debt Management section (pages 14-15).
Another typographical error was noted on page 16 ("trends" not "friends")
There was agreement that the following language from the 1999 policies should be
carried over to the current policies: "should [General] fund balance fall below 5% of
revenues a plan for expenditure reductions and/or revenue increases shall be
submitted to the City Council via the City Manager."
Mr. Jean will rework the document according to tonight's comments. Any other typos
or non -substantive changes should be directed to the City Clerk who will forward to
Mr. Jean. Adoption of the final policies will be scheduled for after the arrival of the
new Finance Director.
Five-year Financial Forecast
Mr. Jean referred to an additional handout (City of Port Townsend General Fund and
Community Services Scenario Forecast - Scenario #1 B) which contains the
background detail for the scenario. This is a program by program blend of the General
Fund and Community Services Fund rather than two different forecasts. Mr.
Timmons added that this base model can now be linked to key decisions related to
Mountain View to see how it performs in different circumstances.
City Council Workshop Meeting May 12, 2014 Page 2 of 3
Mr. Timmons noted that several documents relating to adoption of the Mountain View
strategy, including the school lease agreement, and other contracts and grant
authorizations, will come forward to the Council in June. Mr. Jean will continue to
work with Finance on final financial policies and a five-year financial strategy.
TRAVEL POLICY (MATERIALS PROVIDED/DISCUSS WHEN TO SCHEDULE FOR
CONSIDERATION)
Mr. Timmons reviewed the materials and clarified the difference between the two travel
policies. One was reviewed by the Finance and Budget Committee and the second,
which is now proposed for discussion, is a shorter version which incorporates the
Washington State Travel Guidelines.
Councilors requested a "clean" version of the most recent proposed changes to the
travel policy. Staff was directed to bring the travel policy forward for discussion and
possible action at the May 19 Council business meeting.
ORDINANCE 3106 AMENDING PTMC CHAPTER 3.46 RELATING TO PURCHASING
AND CONTRACTING (MATERIALS PROVIDED/DISCUSS WHEN TO SCHEDULE FOR
CONSIDERATION)
Council directed staff to bring forward Ordinance 3106 amending the City's contracting
process and authority to the May 19 business meeting for discussion and possible
action.
ADJOURN
There being no further business, the meeting was adjourned at 8:45 p.m.
Attest:
Pamela Kolacy,
City Clerk
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