HomeMy WebLinkAboutCity Council Committees - Operations - 03/31/1987 OPERATIONS COMMITTEE MINUTES
March 31 , 1987
COUNCIL MEMBERS PRESENT: Christi Houser
Jim White
STAFF PRESENT: Tony McCarthy
Mike Webby
May Miller
Charlie Lindsey
OTHERS PRESENT: None
APPROVAL OF VOUCHERS
All claims for the period ending March 31 in the amount of $726,787.59 were
approved for payment.
1988 THROUGH 1991. CIP UPDATE PROCESS
Finance Director McCarthy and Financial Services Supervisor May Miller presented
to the committee the proposed time table for updating the City's Capital
Improvement Program for 1988-1992. The time tables includes the:
preparation of a questionnaire,
preparation of project description forms,
holding of public meetings on the East Hill, West Hill and Valley Floor,
presentation of citizen input and funding scenarios to the City Council,
holding of a public hearing and
ADo9IrlaW - of final 1988-1992 capital improvement program.
In addition to reviewing the time table a draft questionnaire was distributed to
the committee that identified progress since the last CIP was :pr ared. The
questionnaire also included issues which the citizens could rank.' The council
committee reviewed these items and noted that they followed council target issues
and felt the information provided was appropriate. A copy of the draft
questionnaire is included with the minutes.
1987 PAY AND CLASS PLAN UPDATE
Assistant City Administrator Mike Webby presented to the committoe a consultant
selection proposal for updating the City pay and class plan. He,,noted that the
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Operations Committee Minutes
March 31, 1987
Page 2
prior pay and class plan study was done in 1980 and implemented as of March 1,
1981. He also told the committee that an every 5 year look is appropriate for
these kinds of studies. He noted that the study would be for 206 nonorganized
employees excluding the City's five bargaining units. He also noted that $20,000
was included in the 1987 Budget to do the study.
It is anticipated that the study would be completed for implementation January 1 ,
1988 with information provided in September, 1987 for 1988 Budget impact. He also
told the committee that a special consultants selection committee would be
established that would include a council member along with some city staff. The
committee suggested that possibly Councilman Biteman would be the appropriate
council member to participate in this committee. Mr. Webby noted that this
information was being brought to the committee at this time as an information only
item but that the consultant would be involved again at consultant selection time.
MOODY'S BOND RATING ANALYSIS
With the issuance of $3.135 million in water revenue refunding bonds the City
received a rating increase from Baa(1 ) to A from Moody's Investor Corporation.
Included with the minutes is the analysis that was done showing the reasons why
the City's rates were improved. In summary the rating was improved because the
City has deferred future rate increases and bonding requirements and the growth in
the area has been better than Moody's initially anticipated.
FEBRUARY FINANCIAL REPORTS
Finance Director McCarthy highlighted the February financial rq1port noting
particularly that utility tax revenue is not coming in at budgeted levels probably
for two reasons: an over optimistic budget estimate and the fact that it has been
a pretty warm winter, and therefore the City is not generating,,,,ass much as in past
years in electric and gas utility tax. This item is not a red 'flog at this point
but the Finance Director wanted to let the committee to keep this in mind as
future reports are presented.
Operations Committee Minutes
March 31 , 1987
Page 3
He also noted to the committee that the $499,648 is shown to be spent this year to
retire councilmanic debt discussed with the Council at their February 17 meeting.
He noted though that all this debt will not be retired immediately as some of it
is not scheduled for retirement until later in the year at which time the
financial position can be again reviewed and final decision can be made on
retirement. The majority of this retirement amount, approximately $400,000, is
coming from beginning fund balance.
ENERGY MODIFICATIONS FOR THE SHOPS AND ENGINEERING BUILDINGS
Customer Services Manager Charlie Lindsey told the committee that over the years
the City has been working with Puget Power to define energy modifications for City
Hall and the Kent Commons and now has a proposal to do energy modifications for
the Engineering Building and the City Shops. In these types of proposals, Puget
Power agrees to pay a portion of the modifications cost up to 71%. The
modifications suggested by Puget Power and provided by the sole bidder Madsen
Electric amount to $9,250.00 plus $749.25 in sales tax. Puget Power will be
paying $5,686.00 leaving the City's balance of $4,313.25. This amount will come
out of an existing budgeted fund for energy modifications and telephone
acquisition costs. Based upon this information the council approved that this
item be included on the consent calendar for the April 7 meeting.
BOND SALE FOR L.I.D. 297
Finance Director McCarthy told the committee that following the approval of final
assessment roles for L.I.D. 297, 310 and 318 the prepayment period is currently in
progress and will end on April 3. At that time the City will be prepared to issue
approximately $2 million in consolidated L.I.D. Bonds. The bond proceeds will be
used to retire two bond anticipation notes issued in 1985 for the construction of
these projects on Meeker Street, Central Avenue and 72nd Avenue. At the meeting
of April 7, Shearson Lehman Brothers will present their proposal to purchase these
bonds at a specified interest rate. This item will be included under other
business for that council meeting date.
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