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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. i 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. Operations Committee Minutes r ; , 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, A1 Operations Committee Minutes 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 J 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. 66F-1 F