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HomeMy WebLinkAboutCity Council Committees - Operations - 10/06/1992 OPERAT A NS COMMITTEEIGN TES October 6, 1992 Brenda Jacober City Clerk COMMITTEE MEMBERS PRESENT: Christi Houser Leona Orr Jim White STAFF PRESENT: Becky Fowler Charlie Lindsey Roger Lubovich Tony McCarthy May Miller Rose Nelson Kelli O'Donnell Tom Vetsch Sue Viseth MEMBERS OF THE PUBLIC: Bill Doolittle Vern Dwight Gordie Edberg Brenda Jacober Linda Johnson Don McDaniel Jean Parietti Approval of Vouchers All claims for the period ending September 30, 1992, in the amount of$1,551,832.74 were approved for payment. 1991 Annual Financial Report Finance Director McCarthy presented the 1991 Annual Financial Report to the Committee. McCarthy noted that it was closer to a corporate financial report in format. The larger, complete report is still produced for the State Audit Opinion. After reviewing the contents of the new report, McCarthy noted that the format may change from year to year depending on the response of the users of the report. For example a bond holder had called and asked for the debt service insurance which may be inciud�d in future years. Committeemember White asked if the new report would be entered in a contest. McCarthy replied that the contest requires the larger format. White asked if there was a cost for entering. ,McCarthy stated that there was a $300 fee, the smaller report was sent in without entering to show:,-possi�le improvements. Committee Chair Houser noted it was easier to read. McCarthy asked the Committee to let him know if there was anything they would like to have added for next years version. State Audit Report McCarthy reviewed the State Audit Report. He noted it was an official opinion and,the report passed the audit. In auditing financial records, it was recommended that in accordance with the Attorney General's opinion on food for public purpose or to meet a City policy objective, the City needs to write a policy. The City's internal auditor is working with Human Resources to develop a policy for food. White asked if the policy would go to Council. McCarthy stated they would bring it;to Operations. White asked if there was a dollar amount on the items. Miller stated that a large majorky;was for in-mate meals and food for the canine dog. 1 r G f OPERA NS COMMITTE NOTES : October 6, 1992 Management Benefit Committee Report Personnel Analyst Viseth updated the Committee on the results of the Managemeat Benefit Committee. Viseth noted that management benefits began in 1984 and have not been reviewed for any changes since that time. This program covers employees who are exempt such as department heads, managers and professionals. Exempt employees do not receive overtime or comp time,instead they receive a modest sum to purchase benefits during open enrollment. In January of 1992 a committee was formed to review enhancements to the program. In light of the financial situation, the committee made recommendation in three stages. The first stage recommendations would have no cost impact,with stage two and three being considered in the future when finances improve. Viseth reviewed the first stage recommendations which included allowing the purchase of as many leave days as the employees dollar allocation would allow, lifting the lid on sick leave accrual and lifting the lid on vacation accrual which would be changed to require compliance with the 240 hour lid only once every year in December,instead of monthly. Viseth stated that an analysis shows that the program costs the City $66,000 a year. If the City were required to pay overtime to exempt employees, it would cost the City $500,000 a year. The estimate of four hours a week of overtime per employee, nofi including department heads was used. The report was finalized in June and brought to the Executive Committee. McCarthy noted that the committee had a difficult task to improve the program to recognize hard work versus the financial difficulties of the City. Houser questioned lifting the sick leave lid not costing the City. Viseth noted there is some financial costs possible but there is no pay out for sick leave upon termination as there is for annual leave. In addition,the long-term disability policy would take over for a major illness. White asked if the Committee was under the program. Viseth responded that they are. Bill Doolittle stated that he was shocked by the number of exempt employees. Out of 588 employees 120 were on the 'bonus"program. Viseth replied that exemption was determined by the Fair Labor Standards Act. Doolittle questioned the ordinance in Appendix A and when it was updated. Viseth responded that it was the original ordinance and the same types of positions have been addeC 4,Viseth added that professionals such as planners, accountants, engineers and program analysts are exeimtpt employees. Orr added that overtime would cost thousands of dollars. Viseth noted that compared th,other cities, Kent is pretty light in this area. During further discussion, Viseth noted the committees recommendation to ,da ► 'City policies on monitoring work schedules and guidelines for flexible work schedules so there is a'e r understanding of the City's expectations. Viseth added that the average exempt employee works SO.60ioucs a week. White asked how leave is accumulated. Viseth responded that eight hours of sick Us" and eight hours of vacation is earned a month with an increase at five years. Capital Improvement Projects McCarthy distributed a listing of CIP projects. McCarthy noted that the City Hall Remodel was a planned expense. White noted that this was not a CIP since there was no Council input cr department input. McCarthy stated that this list was based upon details of the unadopted CIP from Wt�year and that a document needs to be included in the budget until a complete CIP is done next sprins. White stated that the document printed was unadopted and the Council needs to adopt a 1993 CIP ptogtim*since the Mayor doesn't set policy. McCarthy responded that any input would be incorporated and could be heard at the November 3rd Council Meeting. White questioned the process for the initial CIP li�last year. During further discussion, White stated he wanted to have hearings open for department head i$put and a more 2 OPER.AlIbNS C MITTEE*OM 11IlTNTES October 6, 1992 open process. McCarthy stated that he would have a public hearing on the agenda for November 3rd. City Hall Remodel McCarthy stated that after speaking with the architect and meeting with the City Attorney's Office and Human Resources, it was determined that the heating, venting and lighting need upgrading which would require taking out walls. Any project at all would require these upgrades. McCarthy stated he understood the concerns of the Committee and the project could wait until the CIP/Budget process is completed. Orr asked if the revised numbers included the grant. McCarthy responded that the grout is included. White noted that the project was still$50,000 over the CIP amount. McCarthy noted that the heating portion was $406,000 and the City could receive$127,000 grant from Puget Power. In addition,estimates indicate that the old system costs the City$28,000 a year extra due to inefficiency. Orr asked if the grant would still be available in a year or two. Don McDaniel of Puget Power replied that as far as he knew it would be. Orr noted that the longer the City waits the more it would probably cost in addition to the $25,000 lost a year. McCarthy added that he was proposing a bosic open office space. During further discussion,White asked if any furniture was budgeted. Miller noted there was no furniture in the budget to which McCarthy added that they would make do with what they had but some partitions would be needed for electrical purposes. Doolittle questioned the cost of the heating and lighting and pointed out to the 4UmMittee that this was a 3/4 of a million dollar improvement. Doolittle also questioned the 1992 CIP wbich was unadopted and suggested that a form be sent to every City resident and commented on the difface in priorities from 1992. McCarthy responded that the budget needs to be adopted on November 17th and the City will be going through the CIP process next spring. He added that the hardest part of the process is the wording of questions. Added Item Don McDaniel introduced Linda Johnson, the Executive Director of Kent Downtown Partnership to the Committee. McDaniels noted that the City has committed$25,000 to the Partnership as an investment and the Partnership would like to come back to the City with the results in the future, He asked where any future proposals with the groups objectives and mission should go. White replied they could come to the Budget Committee. Chairperson Johnson adjourned the meeting at 4:00 p.m. 3 OPERAT A NS COMMITTEE14INUTES October 6 1992 � Brenda Jacober City Clerk COMMITTEE MEMBERS PRESENT: Christi Houser Leona Orr Jim White STAFF PRESENT: Becky Fowler Charlie Lindsey Roger Lubovich Tony McCarthy May Miller Rose Nelson Kelli O'Donnell Tom Vetsch Sue Viseth MEMBERS OF THE PUBLIC: Bill Doolittle Vern Dwight Gordie Edberg Brenda Jacober Linda Johnson Don McDaniel Jean Parietti Approval of Vouchers All claims for the period ending September 30, 1992, in the amount of$1,551,832.74 were approved for payment. 1991 Annual Financial Report Finance Director McCarthy presented the 1991 Annual Financial Report to the Committee. McCarthy noted that it was closer to a corporate financial report in format. The larger, complete report is still produced for the State Audit Opinion. After reviewing the contents of the new report, McCarthy noted that the format may change from year to year depending on the response of the users of the report For example a bond holder had called and asked for the debt service insurance which may be intruded in future years. Committeemember White asked if the new report would be entered in a contest. McCarthy replied that the contest requires the larger format. White asked if there was a cost for entering. ,McCarthy stated that there was a $300 fee, the smaller report was sent in without entering to show possible improvements. Committee Chair Houser noted it was easier to read. McCarthy asked the Committem to let him know if there was anything they would like to have added for next years version. State Audit Report McCarthy reviewed the State Audit Report. He noted it was an official opinion and,the report passed the audit. In auditing financial records, it was recommended that in accordance with the Attorney General's opinion on food for public purpose or to meet a City policy objective, the City needs to write a policy. The City's internal auditor is working with Human Resources to develop a policy for food. White asked if the policy would go to Council. McCarthy stated they would bring it to Operations. White asked if there was a dollar amount on the items. Miller stated that a large majority,was for in-mate meals and food for the canine dog. 1 OPERA NS COMMITTEEOMINUTES October 6, 1992 Management Benefit Committee Report Personnel Analyst Viseth updated the Committee on the results of the Management Benefit Committee. Viseth noted that management benefits began in 1984 and have not been reviewed for any changes since that time. This program covers employees who are exempt such as department heads, managers and professionals. Exempt employees do not receive overtime or comp time,instead they receive a modest sum to purchase benefits during open enrollment. In January of 1992 a committee was formed to review enhancements to the program. In light of the financial situation, the committee made recommendation in three stages. The first stage recommendations would have no cost impact,with stage two and three being considered in the future when finances improve. Viseth reviewed the first stage recommendations which included allowing the purchase of as many leave days as the employees dollar allocation would allow, lifting the lid on sick leave accrual and lifting the lid on vacation accrual which would be changed to require compliance with the 240 hour lid only once every year in December,instead of monthly. Viseth stated that an analysis shows that the program costs the City $66,000 a year. If the City were required to pay overtime to exempt employees, it would cost the City $500,000 a year. The estimate of four hours a week of overtime per employee, not including department heads was used. The report was finalized in June and brought to the Executive Committee. McCarthy noted that the committee had a difficult task to improve the program to recognize hard work versus the financial difficulties of the City. Houser questioned lifting the sick leave lid not costing the City. Viseth noted there is some financial costs possible but there is no pay out for sick leave upon termination as there is for annual leave. In addition,the long-term disability policy would take over for a major illness. White asked if the Committee was under the program. Viseth responded that they are. Bill Doolittle stated that he was shocked by the number of exempt employees. Out cif 588 employees 120 were on the "bonus"program. Viseth replied that exemption was determined by the Fair Labor Standards Act. Doolittle questioned the ordinance in Appendix A and when it was updated. Viseth responded that it was the original ordinance and the same types of positions have been added � Viseth added that professionals such as planners, accountants, engineers and program analysts are-exeempt employees. Orr added that overtime would cost thousands of dollars. Viseth noted that compared to other cities, Kent is pretty light in this area. During further discussion, Viseth noted the committees recommendation to daffy City policies on monitoring work schedules and guidelines for flexible work schedules so there is a&ar understanding of the City's expectations. Viseth added that the average exempt employee works 50-60'-hours a week. White asked how leave is accumulated. Viseth responded that eight hours of sick leave and eight hours of vacation is earned a month with an increase at five years. Capital Improvement Projects McCarthy distributed a listing of CIP projects. McCarthy noted that the City Hall Remodel was a planned expense. White noted that this was not a CIP since there was no Council input dr department input. McCarthy stated that this list was based upon details of the unadopted CIP from last year and that a document needs to be included in the budget until a complete CIP is done next spring. White stated that the document printed was unadopted and the Council needs to adopt a 1993 CIP program since the Mayor doesn't set policy. McCarthy responded that any input would be incorporated and could be heard at the November 3rd Council Meeting. White questioned the process for the initial.aP O ng last year. During further discussion, White stated he wanted to have hearings open for departmeitt head input and a more 2 . � OPERKA �� NS COMMITTEI?MINUTES October 6, 1992 open process. McCarthy stated that he would have a public hearing on the agenda for November 3rd. City Hall Remodel McCarthy stated that after speaking with the architect and meeting with the City Attorney's Office and Human Resources, it was determined that the heating,venting and lighting need upgrading which would require taking out walls. Any project at all would require these upgrades. McCarthy stated he understood the concerns of the Committee and the project could wait until the CIP/Budget process is completed. Orr asked if the revised numbers included the grant. McCarthy responded that the grant is included. White noted that the project was still$50,000 over the CIP amount. McCarthy noted that the heating portion was $406,000 and the City could receive$127,000 grant from Puget Power. In addition,estimates indicate that the old system costs the City$28,000 a year extra due to inefficiency. Orr asked if the grant would still be available in a year or two. Don McDaniel of Puget Power replied that as far as he knew it would be. Orr noted that the longer the City waits the more it would probably cost in addition to the $25,000 lost a year. McCarthy added that he was proposing a basic open office space. During further discussion,White asked if any furniture was budgeted. Miller noted there was no furniture in the budget to which McCarthy added that they would make do with what they had but some partitions would be needed for electrical purposes. Doolittle questioned the cost of the heating and lighting and pointed out to the Ctonnittee that this was a 3/4 of a million dollar improvement. Doolittle also questioned the 1992 CIP which was unadopted and suggested that a form be sent to every City resident and commented on the difference in priorities from 1992. McCarthy responded that the budget needs to be adopted on November 17th and the City will be going through the CIP process next spring. He added that the hardest part of the process is the wording of questions. Added Item Don McDaniel introduced Linda Johnson, the Executive Director of Kent Downtown Partnership to the Committee. McDaniels noted that the City has committed$25,000 to the Partnership as an investment and the Partnership would like to come back to the City with the results in the future. He asked where any future proposals with the groups objectives and mission should go. White replied they could come to the Budget Committee. Chairperson Johnson adjourned the meeting at 4:00 p.m. 3