HomeMy WebLinkAboutCity Council Committees - Operations - 09/15/1987 OPERATIONS COMMITTEE MINUTES
September 15, 1987
COUNCIL MEMBERS PRESENT: Berne Biteman
Christi Houser
Steve Dowell
STAFF PRESENT: Brent McFall
Tony McCarthy
Sandra Driscoll
Charlie Lindsey
OTHERS PRESENT: None
APPROVAL OF VOUCHERS
All claims for the period ending September 15, 1987, in the amount of $789,549.39
were approved for payment.
ACCOUNTS RECEIVABLE REPORT
Finance Director McCarthy presented a report to the Committee asking for the
write-off of $14,793.05 in accounts receivable. Mr. McCarthy explained to the
Committee that the City's outstanding monthly accounts receivable were
approximately $8,400,000 and that approximately $340,000 of these receivables are
in the 90 day and older category. In this category, the City is asking for the
write-off of $7,049.66 in miscellaneous receivables, $7,642.00 in parking
citations, and $101 .39 in special assessments. These amounts are all older than
12/31/85 and the City has expended the efforts to collect these to the extent that
it appears reasonable.
In addition to presenting the receivable write-off proposal, Mr. McCarthy discussed
the current accounts receivable practice involving original invoices, subsequent
letters, attorney involvements, lien rights, cut-off notices, foreclosure actions,
and small claims court if cost effective. None of the amounts are being proposed
for small claims court because of the unlikely event that the billing could be
sufficiently documented and the parties brought to court. Based on the presenta-
tion, the Council agreed to adopt the Finance Director's recommendation and
authorize the write-off of $14,793.05.
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Operations Committee Minutes
September 15, 1987
Page 2
INTERIM FINANCING FOR THE GOLF COURSE
Finance Director McCarthy explained to the Committee as a follow-up,; to their
August 31 meeting that he had analyzed interim financing for the Golf Course both
internally and externally, and is proposing that the internal financing option be
chosen. This option would allow the current land acquisition and preliminary site
development costs to be paid prior to issuing the permanent revenue bond financing
after the final bids are let for Golf Course completion. This interim proposal ,
provides the City some flexibility in meeting its dates for permanent financing and
provides the City's General Fund with the adequate return on its loan to the Golf
Course. Even though the proposal from outside sources could save the Golf Course
between $1 ,600 and $2,600, this proposal does not consider the cost of staff time
in marketing such a proposal nor the inflexibility associated with the establish-
ment of a fixed date for the debt retirement. Based on this, the staff recommended
that the Council go along with the Finance Department's proposal . They concurred.
The item appears on the September 15 Council Consent Calendar.
METRO REBATE
Finance Director McCarthy updated the Committee on the Metro rebate proposal which
will rebate $196,596.64 to City of Kent sewerage customers based on residential
equivalents computed as of the August billing. With residential equivalents
totaling 33, 185, the rebate per residential equivalent will be $5.92. This amount
is lower than initially proposed because of a larger number of residential
equivalents computed as of the August billing.
The Council reviewed the list of residential equivalents for commercial customers
and noted that many of the large customers had not been in existence for the total
term of the rebate which was January of 1983 through June 1987. Because they had
not been in business for the total period of the rebate, January 10,83 through' June
1987, the staff told the Committee that the only way possible to make the rebate
was to pick a period of time and compute the residential equivalents. Based on
their last meeting, the period of time was chosen as the most current period of
time and is the only feasible way to actually make the rebate. Based upon this,
the Council authorized the continuing with the effort and the amount will be
rebated as an adjustment on the September billing.
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September 15, 1987
Page 3
SUBSEQUENT TO THE MEETING THE RESIDENTIAL EQUIVALENTS WAS RECOMPUTE, AS 21,594
PROVIDING AN ADJUSTMENT OF $9.10 PLUS UTILITY TAX FOR A TOTAL OF, $9',28.
REROOFING REQUEST FOR LIBRARY AND ENGINEERING BUILDINGS
Finance Director McCarthy noted that his department had recently become aware of
leaking roofs at both the Engineering and Library building and is soliciting quotes
for the completion of these projects. The total cost for both projects will be
approximately $8,000 with the Library participating in half of the library project
for approximately $2,000. Staff noted that these amounts will be covered within
the existing POB budget and no further Council action is required. The Committee -
approved this request unanimously.
JULY FINANCIAL REPORT
The Finance Director briefly reviewed the July financial report noting in
particular that the 90 day plus accounts receivable had diminished"slightly from
the June report discussed in conjunction with the accounts receivable write-offs.
He noted that the foreclosure letters sent on delinquent LIDs had greatly reduced
the outstanding amount. Other highlighted issues in the July report were the fact
that information on August sales tax had been received and that property tax
related to the Boeing Company's dispute on a property tax bill had been made
providing the City with greater revenue estimates than the dim 'picture that had
been presented in the previous month. Based upon the information received for
August, the City's financial picture looks more stable than had been presented for
the month of June. This information will be updated for the full Council in
conjunction with the presentation of the September quarterly report to the Council
at the October 27 Council workshop on the Budget.
HEALTH AND FITNESS
Councilman Biteman asked the Council Committee for a recommendation on obtaining
requests for proposals for a health and wellness program. He defined the aspects
that the proposal would include to be 1) individualized prescriptive program
considering personal goals and lifestyle of individual employees, 1) monitored,
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September 15, 1987
Page 4
complete physical fitness reports on a periodic basis, 3) a provision for
demonstrated return to the City in terms ,of lower absenteeism due, 0 1 llness and
injury, and 4) an individualized goal and reward system. He propos ,d that a
request for proposal be drafted to consider these aspects and that This request for
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proposal be forwarded to the Kent Commons facility along with other health and
fitness providers in the area, and that the City obtain the lowest possible quote
and continue to proceed ahead. Councilman Dowell wished to abstain from voting on
this issue since he had not been present at the previous Operations 'Committee
meeting. Councilmen Biteman and Houser both approved that the City proceed.
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