HomeMy WebLinkAboutCity Council Committees - Operations - 01/08/1991 OPERATIONS COMMITTEE MINUTES
January 8, 1991
COUNCIL MEMBERS PRESENT: Christi Houser
Jon Johnson %
Paul Mann C%y -76 ,7
STAFF PRESENT: Jed Aldridge 't
Norm Angelo C`!e 4A
Tom Brubaker
Kevin Garling
Joy Honeycut
Charlie Lindsey
Roger Lubovich
Tony McCarthy
Alana McIalwain
May Miller
Kelli O'Donnell
Don Olson
Tom Shepard
Ron Spang
Don Wickstrom
John Willits
The meeting was called to order at 4:35 pm by acting chairperson Paul Mann.
The following items were added to the agenda:
o Contract for Public Defender
o Defense Agreement for CETA Lawsuit
o James Street Crossing
0 259th and Central Crossing
o Military Leave Consideration
Approval of Vouchers
All claims for the period ending December 31, 1990 in the amc unt of$531,315.73 were approved
for payment.
Reorganization in Information Services
Information Services Director Spang updated the Operations ommittee on the reorganization of
the department. The reorganization plan had been presented to Council during the 1991 budget
process at which time the Council had approved 1.0 additional F TE plus additional his supporting
the reorganization, pending administrative approval. The re ganization has been reviewed and
approved by the Personnel Department and the Internal Perso el Committee. The IPC approved
the reorganization and authorized immediate implementati n of the reorganization with the
exception of the additional Production Services Supervisor posi on. The Operations Committee was
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Operation Committee Minutes - January 8. 1991
informed that this position represented a .5 FTE increase from budget authorization levels.
However, the funds for the position are within the Council authorized budget limits.
Committeemember Mann asked if there had been any further action on personal computers for the
Councilmembers. Finance Director McCarthy noted that this item had not been rated high in the
1991 budget process and had not been funded. Information Service Director Spang stated that he
was available to address this issue with the City Council and Administration.
Ordinance on Procedure for Accepting Donations
Finance Director McCarthy outlined the City's need for an ordinance establishing a procedure for
accepting donations, devises and bequests. In the past,the City has accepted donations noting that
the contributor should consult their certified public accountant as to whether their donation was
tax deductible.
Assistant City Attorney Brubaker noted that while researching the matter an ordinance was needed
to provide a vehicle for contributors to give tax deductible donations but it does not declare such
contributions as tax deductible outright. The ordinance also set guidelines for the acceptance of
donations by the City. Gifts over a $5,000 value would be accepted by the City Council. For
amounts under $5,000, acceptance by the Council is optional.
Committeemember Johnson made a motion to recommend approval of the ordinance. The motion
was seconded and passed by a vote of 2-0.
Delinquent Accounts Receivable Collection Agency and Writeoffs
Finance Director McCarthy reviewed the current delinquent accounts receivable position. The
Internal Budget Committee had recommended exploration of the use of a collection agency to
recover some accounts for the City.
The Finance Department has researched this issue and recommends the use of Transworld Systems
Inc. to start a pilot collection program. Under the collection agency proposal, the City would pay
them $8.45 per account for which the company would write a series of collection letters. Their
success rate for letter writing alone is 56% which if applied to 24 selected accounts totalling
$26,935.19 for the pilot program which could generate$15,083.71 for the City at a cost of$202.8.
Following the letter writing process the company may be engaged for other collection efforts such
as garnishments and court action at an additional cost of 35% to 50% on an account by account
basis. If the pilot project is successful, the company may be used for additional business as they
are collection experts and thus should reduce the magnitude of future writeoffs.
Finance Director McCarthy also reviewed the proposed request for writeoff authorization which
includes accounts over 15 months old; the EPA clean up site bankruptcy; parking cites before
12/31/88; for a total writeoff of$33,279,86. It was further requested authorization be given to
contract with Transworld Systems Inc., Collection Division.
The Committee asked if Transworld Systems Inc. had any experience with other cities.
Finance Director McCarthy replied that they had worked with Lynden, Bellingham and also some
cities in Oregon and had a local office in Bellevue. Statistics show that receivables are 80%
collectible at 60 days but declines to 20% at 240 days.
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Operation Committee Minutes - January 8. 1991
It was moved and seconded to recommend authorization for writeoffs and authorization to contract
with Transworld Systems Inc., Collection Division. The motion passed with a vote of 3-0.
November Monthly Financial Report
Finance Director McCarthy reviewed the recommendation of the Internal Budget Committee to
update the Operations Committee on behalf of the Council on a monthly basis for the previous
month. It was recommended that the previous month be reviewed at the second monthly meeting
of the Committee. After receiving the Committee's concurrence, he reviewed the November
highlights with the Operations Committee.
Finance Director McCarthy outlined a number of factors which were pointing toward a shortfall in
the estimated revenue. The 1991 budget was based on July figures. Revenues have not met the
estimates. There has also been a decline in sales tax revenue since August. There have been a
few unusual expenditures including the salary reclass. Additionally, there were extraordinary
weather related expenses for December including increased overtime.
Development and implementation of a budget cutback plan was recommended to the Committee.
Finance Director McCarthy outlined a suggested action plan which included an immediate hiring
slow down and a freeze in the CIP funds from the general fund. These actions would allow further
data to be collected to decide if more drastic measures are necessary as 1991 progresses.
Committeemember Johnson suggested that there could be an evaluation of positions rated high
during the budget process that show a critical need. The same could be done with projects and
non-essential expenditures being deferred to mid-year. Finance Director McCarthy concurred and
added that monthly updates of the financial position would help in deciding how long to continue
slow downs. He also notified the Committee of a proposed change in accounting for utility tax
accruals to comply with the Government Accounting Standards Board and is currently working with
the state auditor to decide if it should be implemented or wait to a later date.
CETA Litigation
City Attorney Lubovich reviewed a proposed agreement regarding apportionment of liability and
defense costs in the lawsuit regarding the handling of CETA grant funds in the early 1980's. The
municipal attorneys of the various defendants have been meeting to discuss how to procedurally
handle this litigation and have proposed an agreement to share costs and liability for this litigation.
The proposed agreement would apportion costs and liability based on voting power granted to each
of the consortium's members. Upon approval by all parties this proposal would limit the City of
Kent's liability to$30,713.56 plus expenses with the grand total possible liability of all parties being
$564,136.55. If a judgment is rendered against any one or more of the parties, the percentages
would be applied as agreed.
The City Attorney recommended approval of this agreement. After further discuss,it was moved
and seconded to authorize acceptance of this agreement. The motion passed with a vote of 3-0.
Contract for Public Defense
City Attorney Lubovich requested authorization to renew a contract with Sampson Nilson&Combs,
Inc., P.S. for public defense services. The contract reflects an increase from$6,500 per month to
$8,500 a month which has been in effect the last four months of 1990. Other proposals were in
the $12,000 per month range. The increase in cost of services was negotiated based on increased
case load and will hold firm throughout 1991.
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Oueration Committee Minutes - January 8. 1991
Motion was made and seconded to authorize renewal of the contract. The motion passed with a
vote of 3-0.
Military Leave Consideration
Personnel Director Olson informed the Operations Committee of the firefighters'request to review
the City's Military Leave Policy. The City is required to grant 15 days leave for military training to
reservists which has been negotiated in five out of the six union contracts to which it applies. The
contract with the Fire union had not resolved this issue. The Fire Department currently has two
members who have been called to active duty and are requesting consideration of 15 days paid
leave to be applied against statutory reservist pay.
After further discussion, the City Attorney noted there was a question as to the legality of signing
away a statutory right and the possibility of a double hit when reservists returned and were
required to put in an additional 15 days training. City Policy also needs to be revised if
consideration is given for active duty. City Administrator Chow added that the issue had been
raised at IBC and IPC and the firefighters had been advised to feel free to contact the City Council
directly.
Committeemember Mann asked what the total cost to the City would be. It was estimated that
fifteen employees could be eligible with only two currently active. Committeemember Mann made
a motion to grant active duty leave pay.
During discussion of the motion John Willits, President of the local firefighters union, addressed
the committee in which he noted that the money will be spent now or later. The firefighters take
an approximate 65% cut in pay when on the military payroll which is even greater when the
reduction in benefits is added. He also asked the Operations Committee to consider implementation
of a leave sharing policy.
Committeemember Johnson requested that leave sharing be looked at as well as the financial
impact to the City of such a policy. Further, what would be the financial cost.of paying the
difference in pay for active duty employees as an employer benefit for no fault active duty and the
cost of benefits. Committeemember Houser agreed noting that the leave question needed to be
settled immediately. Fire Chief Angelo stated that he would not be replacing employees called to
active duty for a minimum of six months so there would be some budgetary reserve to cover some
actions. A discussion followed as to what amount of shift time would be considered for the fifteen
days. Personnel Director Olson suggested that payment be started immediately for fifteen, eight
hour shifts and a reimbursement could be made in the future if more was granted.
A motion was made to grant fifteen, eight hour shifts for active military leave with research as to
budgetary and legal impact being brought back to the Operations Committee for further
consideration. The motion was seconded and forwarded to the City Council by a vote of 3-0.
James Street Crossing; 259th and Central Traffic Light
Committeemember Mann informed the Committee that the Public Safety Committee had recently
received a petition signed by 421 citizens for a traffic light at 259th and Central. Additionally,
another petition was received signed by over 400 citizens for a crossing on James Street. The
Public Safety Committee had voted to make these items a priority. Committeemember Mann
recommended a motion supporting reprioritization of funds to address these issues.
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Operation Committee Minutes - January 8, 1991
Committeemember Johnson asked if any suggestions had been made as to which items should be
moved or replaced for such a reprioritization. A discussion followed as to how these projects could
be funded. Committeemember Mann put forth a motion to target these areas for completion within
the next two years. The motion passed with a vote of 3-0.
Change of Meeting Time
Chairperson Houser requested that the Operations Committee be changed from 4:30 p.m. to 4:45
p.m. It was agreed that the meetings would be held at 4:45 p.m.with the next meeting on January
22, 1991.
The meeting was adjourned at 5:55 p.m.
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