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HomeMy WebLinkAboutCity Council Committees - Operations - 06/07/2005 ET YnnRMMnTOM OPERA.TtONS COMMITTEE MINUTES JUNE 7, 2005 Cornaittec Merbers Present: Chair Tim Clark, Julie Peterson, aeld BI-ucc White The meeting was called to order by Tim Clark, Chair at 4:03 p.m. 1. APPROVAL OF MINUTES DATED MAY 17 2005 ]Bruce White roved to approve the minutes of the May 17, 2005, Operatiou Comuzittee meetiug. Julie Petersou seconded the motion, which passed 3-0. 2. APPROVAL OF VOUCHERS DATED MAY 31,2005 Finance Manager Bob Nach.linger presented the vouchers for May 31, 2005, for approval. Julie Peterson moved to approve the vouchers dated May 31, 2005. Bruce White seconded the motion, which passed 3-0. 3. LOCAL & LONG DISTANCE TELEPI[ONE SERVICE VENDOR Information Technology Director. Stan Waldrop requested to change the City's local and local distance service vendor from Focal Communications (Focal), to World Communications Inc. (WCI), a reseller of Focal local and long distance services. The City currently obtains local and long distance telephone service through Focal. WCI is a reseller of Focal telecommunication services and can offer the City lower rates because of the volume business that they do with Focal. Because of WCI's relationship with Focal, Focal has agreed to tenni.nate the City's current agreement with no penalty and allow the City to enter into an agreement with WCI under the same terms but with reduced rates. The new rates will save the City approximately 18% (depending on usage) for local and long distance telephone service. Mr. Waldrop advised that the cost of the service is already included in the current operating budget. Julie Petersou moved to authorize the Mayor to sign a l year contract with NVorld Couamuuicatious Iuc. (WCI), for local and long distance telephone service that replaces the City's current agreement with Focal Connmuuicatious, subject to City Attorney approval of contract documents. Bruce White seconded the motion,which passed 3-0. Operations Committee Minutes June 7, 2005 Page: 2 4. 2005- 20OTMICROSOFT ASSURANCE RENEWAL Information Technology Director Stan Waldrop requested approval of the City entering into a three year agreement to renew the Microsoft Software Assurance on Microsoft Office, Exchange CALs, and Windows Server CALS through the Washington State Department of Information Services (DIS) Microsoft Select Agreement. Mr. Waldrop advised that the City of Kent utilizes Microsoft products for office productivity, email, and server operating system applications. In an. effort to stabilize their revenue stream, Microsoft has adopted a licensing program that encourages organizations to adopt new software releases while spreading the cost of purchasing the updated licenses over time. Renewing the Software Assurance on Microsoft Office, Exchange CALs, and Windows Server CALs enables the City to utilize the most up to date versions of these products at a significantly reduced cost and spread that cost over the 3 year term of the agreement. Initial payment of$89,461 will come from the Technology Plan 2002. Subsequent payments in 2006 and 2007 will. be included as part of the Information Technology Operating Budget. Mr. Waldrop further advised that over the last several years, Microsoft has attempted to shift the software licensing model to a subscription system rather than a perpetual use system. While the subscription model has met with resistance, Microsoft has made considerable progress toward a model that generates steady revenue through their Software Assurance(SA) and Enterprise Agreement (EA) arrangements. Bruce White moved to appl-ove entering into a three-year agreement to renew the In Microsoft- Software Assurance mi Microsoft Office, Exchange CALs, and Windows Server CALS through the Washington State IBIS Microsoft Select Agreement. Julie Peterson seconded the motion,which passed 3-0. 5. US BANK—ONE CARD AGREEMENT Finance Director Bob Nachlinger requested the Operations Committee authorize the Mayor to execute a contract with U.S. Bank — One Card Program. Mr. Nachlinger advised that City Administration plans to begin a program of authorizing small purchases through purchasing cards rather then using petty cash and purchase orders. These purchases will be in accordance with the Procurement Card Policy, which sets out the authorized uses of these cards. Mr. Nachlinger advised that the Finance Department believes that this program will reduce the paper flow involved with small purchases as well as improving our business relations with suppliers buy improving the timing of payments. There is no budget impact on the City from the authorization of these procurement cards. The various departments have budgets for the expenditures that will be made within their existing budgets. Questions were asked of Mr. Nachlinger regarding the Agreement by the Committee. 2 Operations Committee Minutes June 7, 2005 Page: 3 Julie Peterson moved to recommend that the Operations Committee authorize the Mayor to execute the contract with the U S Bank One Card Program and forward the item to the City Council agenda of June 21,2005. Bruce White seconded the motion, which passed 3- 0. 6. 'f E STANDARD INSURANCE COMPANY LONGTERM DISABILITY CONTRACT-2005 Benefits Manager Becky Fowler requested the Operations Committee authorize the Mayor to approve The Standard Insurance Company application for the City's long tern disability plan. Ms. Fowler advised that The Standard hisurance company (Standard) responded to the City's bid request for our long-term disability coverage for the AFSCME, Teamster and Non- Represented employee groups. Standard quoted .73% of base compensation for our long-terra disability coverage for an annual. cost of$199,656. The long-terra disability contract begins on July 1, 2005. Ms. Fowler advised that Assurant Employee Benefits (Fortis) increased our insurance premium from .65% to .81% of compensation beginning July, 1 2005 for an annual cost of$221,532. Standard quoted .73% for an aiuival cost of$ 199,656. The annual increase for Assurant Employee Benefits is $43,768 and with Standard is $21,892. Changing the City's carrier to Standard will provide the City with an annual savings.of$21,876. In addition, the City already contracts with Standard for life insurance coverage's. Moving our long-tenn disability coverage to Standard will streamline administrative process and underwriters offer discounts in their renewal calculations for multiple coverage's. Also, the waiver of premium benefit on an employee's life insurance is automatically triggered if an. employee goes out on disability. Bruce White moved to recommend to authorize that The Standard Insurance Company application for the City's long-term disability plan be placed on the City Council consent calendar for the June 21, 2005 meeting. Julie Peterson seconded the motion, which passed 3-0. 7. PREMERA BLUE CROSS ADMINISTRATIVE SERVICES CONTRACT FOR 2005 Benefits Manager Becky Fowler presented the Premera Blue Cross Administrative Services Contract for 2005. Ms. Fowler advised that the City contracts with Premera Blue Cross as a third-party administrator (TPA) to process claims and provide access to Premera Blue Cross's PPO network of doctors and hospitals. The city is self-insured for this program and wires the weekly claims cost to Premera Blue Cross for our medical and dental expenses. The 2005 3 Operations Committee Minutes June 7, 2005 Page: 4 contract reflects a 6% increase in administrative fees by Premera Blue Cross and is budgeted in the health and welfare fund at a cost of $551,905 for the Administrative Services Contract. Approximately 94% of the City's employee population is covered under the self-funded Premera Blue Cross program totaling 2,200 lives. Included in this coverage is our LEOFF 1 retirees and their dependents. The overall projected cost of our self-insured plan inclusive of administration fees is $8,947,787 for 2005 and is budgeted in.the health and welfare fund. Julie Peterson moved to recommend to authorize that the Premera Blue Cross Administrative Services Contract for the City's self-insured health plan be placed on the City Council consent calendar for the dune 21, 2005 meeting. Bruce White seconded the motion, which passed 3-0. 8. GROUP HEALTH COOPERATIVE 2005 CONTRACT Benefits Manager Becky Fowler presented the Group Health Cooperative 2005 Contract. Ms. Fowler advised that Renewal of the Group Health Cooperative of Puget Sound contract for the city's insured health maintenance Organization (HMO). The 2005 contract reflects an approximate 5.8% increase in the health. care premiums charged by Group Health Cooperative and is budgeted in the health and welfare fund at a cost of$274,215 (Health & Welfare Fund). Ms. Fowler further advised that the City purchases insurance with Group Health Cooperative of Puget Sound. Group Health is a non-profit, health maintenance organization (HMO) providing primary care medical and specialty center throughout the Pacific Northwest and that approximately 46 employees and their families are covered under our Group Health Cooperative plan. Bruce White moved to recommend that the 2005 Group Health. Cooperative contract for the City's insured HMO plan be placed on the City Council consent calendar for the June 21,2005 meeting. Julie Peterson seconded the motion,which passed 3-0. 9. FLEIPASS PROGRAM AGREEMENT 2005-2006 Human Resources Analyst Ellen Bradley Mak presented. the Flexpass Program Agreement for 2005-2006. Ms. Mak advised that the City contracts with King County, Sound Transit and Pierce Transit for the sale of Flexpasses. The FlexPass Program allows for eligible Commute Trip Reduction (CTR) affected employees to choose from a variety of non-SOV (Single Occupancy Vehicle) cornraute options provided. by King County Metro, Sound Transit and Pierce Transit. The value of a pass is $3.00 of each one-way King County Metro bus, Pierce County Transit or Sounder Rail fare. The pass will also serve as a vanpool pass up to a face 4 Operations Committee Minutes June 7. 2005 Page: 5 value of$65.00 per month. Ms. Mak further advised that the FlexPass Program Agreement for 2005-2006 is budgeted in the CTR budget Julie Peterson moved to recommend that the FlexPass Program Agreement be placed on the Consent Calendar for the June 7, 2005, City Council Meeting authorizing the Mayor to sign a one year contract with King County Metro, Sound Transit, and Pierce Transit for the FlexPass Program. Tim Clark seconded the motion, which passed 2-1. The meeting was adjounied at 4.55 p.m. Renee Cameron Operations Committee Secretary 5