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HomeMy WebLinkAboutCity Council Committees - Operations - 11/26/1991 OPERATIONS COMMITTEE MINUTES November 26, 1991 COMMITTEE MEMBERS PRESENT: Christi Houser Jon Johnson Paul Mann STAFF PRESENT: Edward Chow, Jr. Jim Hansen Charlie Lindsey Roger Lubovich Tony McCarthy Kelli O'Donnell Don Wickstrom MEMBERS OF THE PUBLIC: Morgan Llewellyn Jean Parietti The meeting was called to order at 5:50 p.m. by Chairperson Houser. Next Meeting Assistant City Administrator asked if the next meeting of the Operations Committee could be rescheduled because of a conflict with a department head meeting. Chairperson Houser agreed to have the next meeting on Wednesday, December 11, 1991 at 5:30 p.m. Added Item Assistant City Administrator Hansen requested that two items be added to the agenda regarding a street sweeping bid and the repeal of a security guard ordinance. Chairperson Houser added the items to the agenda. Approval of Vouchers All claims for the period ending November 15, 1991 in the amount of$2,S02,1S&06 were approved for payment. 1991 Accounts Receivable Writeoffs Finance Director McCarthy reviewed the proposed writeoffs for 1991. He explained that a number of the accounts were currently being handled by a collection agency at a cost of $8.45 per account. As of November, they had handled 83 accounts and collected on 49 amounting to a cost of approximately$800 to the City with a revenue of$1,500. He felt this program was proving to be successful enough to continue turning accounts over after 30 days and one notice. Credit Management Services also handles accounts that are over $100 and currently have $18,000 turned over to them. 1 w r The 1991 writeoff request is for approximately$54,000 of which$22,000 are bankartotcy,proceedings and $18,000 is turned over to collection. This leaves about$14,000 in miscellaneous woffs which is only .1% outstanding. Finance recommends the writeoff of the $54,000 though some my be collected in the future. Committeemember Johnson asked if warrants for arrest were issued for outstanding parking tickets. McCarthy replied that when three citations were issued a hold on the vehicle licensing is invoked. City Administrator Chow asked if any action was taken with employees. McCarthy responded that the three citation vehicle license hold was applied. City Attorney Lubovich asked if a form letter had,been attempted. McCarthy replied that for a total of$6,000 he wasn't sure if the investment of time would be justifiable. In addition to the original citation a billing was sent. Chairperson Houser recommended approving the 1991 writeoff and asked that Finance look at revisions for 1992. After further discussion,Comitteemember Mann MOVED to approve the 1991 accounts receivable writeoffs. The motion was SECONDED and PASSED with a vote of 3-0. Procurement and Contract Authorization Ordinance: Planning Department ConsWtant Contracts; and Update of City Code Pertaining to Public Works Ordinance City Attorney Lubovich stated that the above three agenda items were inter-related as an update to the City Code. The current City Code refers to the State Statute under Public Works for cities of 20,000 or less. In addition to correcting this reference, the proposed revision would reference City Resolution thereby allowing updates without revising the City Code. The City Attorney's Office is getting ready to order a new printing of the City Code and is working to clean up items that are inconsistent with the Revised Code of Washington. The new ordinance for Public Works will no longer establish procedures for procurement and contract authorization so the City Attorney's Office has drafted an ordinance addressing this issue. The ordinance states that purchases under $7,500 do not require a formal process. Purchases over$7,500 require three bids by phone or other methods. Purchases over $15,000 require a formal bid process. In addition, contracts over $7,500 must be approved and signed by the Mayor. Contracts over $15,000 must be authorized by the City Council. There are some exceptions as stated in the ordinance such as public works projects. Finally, the City Code currently requires that Planning Department consulting contracts go to the City Council for negotiation. The proposed ordinance repeals this paragraph. Discussion followed regarding the monetary limits. Assistant City Administrator Hansen stated that these revisions would clarify to all departments what steps need to be taken for contracts and bids. Committeemember Mann MOVED to adopt items three, four and five on the agenda. The motion was SECONDED and PASSED with a vote of 3-0. 11292 Properly Tax Levy Ordinance Finance Director McCarthy informed the Committee that they had not received the sales tax figures as expected. Apparently the deadline has been emended and the figure should be to the City between December 9th and 13th. Senior Housing Contract Ap-proval Assistant City Administrator Hansen informed the Committee that a full presentation would be given at the next City Council meeting with the updated site plan. Hansen reviewed the budged changes as reflected in the new contract. Additional items had been added to the project from a conittee consisting of Planning and Administration staff. As proposed, additional parking will be acquired that goes above the 2 code requirements. With seniors staying active longer it was decided that increased parking would be beneficial. The additional costs were met by a Housing Trust Fund (HTF) loan which is,interest free and will be repaid by the Housing Authority, a King County Housing Opportunity Fund (HOF) grant; and, the interest accrued from the bond. When Chairperson Houser asked if the additional interest money could be applied to a different project, McCarthy informed the Committee that the Bond was passed specifically for senior housing so all of the interest needs to go back into the project. City Attorney Lubovich stated that the Committee and Council will only receive the body of the contract because of the volume of the exhibits. The exhibits will be available to review in the City Attorney's office. The contract had already been presented to the Housing Authority and the Bellewood Corporation. It is also important to remember that no payments will be made until the housing is satisfactorily completed at which time the project would transfer to the Housing Authority with a revisionary clause if the City decides to operate their own housing authority or the Housing Authority terminates the agreement. After further discussion, Committeemember Mann MOVED to recommend adoption of the ordinance authorizing execution of a Contract of Sale for the Kent Senior Housing Project. Committeemember Johnson SECONDED and the motion PASSED with vote of 3-0. Street Sweeping Contract Public Works Director Wickstrom requested authorization to award the bid as presented. To do so would require the respective budget to be increased by$75,000. The current contractor has gone out of business. Four bids were received with only one being responsive. The additional funds would come from the sewerage fund with no impact on the general fund. Comndtteemember Mann asked if it was possible to do the sweeping in house. Wickstrom responded that there would be a high initial cost of equipment as well as problems associated with disposing of the sand collected. Committeemember Mann MOVED to recommend option 2 to award the bid as presented. The motion was SECONDED and PASSED with a vote of 3-0. October Financial Reevort Finance Director McCarthy reviewed with the Committee the October financial report. He noted that the declining interest rates were being reflected in the overnight investments. The City,does have a number of long-term investments at higher rates. After reviewing the receivables status and the outstanding debt and bonding capacity, McCarthy reviewed the revenue figures noting that there was some cushion in case of a future downturn. Private Security Guard Ordinance Repeal City Attorney Lubovich requested authorization to pass an ordinance repealing Ordinance 2387 relating to the licensing and regulation of private security guard services which is pre-empted by state law. This inconsistency was found while reviewing the City Code and should be corrected. Committeemember Mann MOVED to recommend adoption of the proposed ordinance. The motion was SECONDED and PASSED with a vote of 3-0. The meeting was adjourned at 6:55 p.m. by Chairperson Houser. 3