HomeMy WebLinkAboutCity Council Committees - Operations - 05/25/1994,r-- OPE RATIONS COMMITTEE MINUTE S
MAY 25, 1994
COMMITTEE MEMBERS PRESENT: Jon Johnson -Chair, Christi Houser, Leona Orr
STAFF PRESENT: Ken Chatwin, Charlie Lindsey, Arthur Martin, Brent McFall, May Miller,
Kelli O'Donnell, Sue Viseth
MEMBERS OF THE PUBLIC: None
The meeting was called to order at 9:33 a.m. by Chairperson Johnson.
Approval of Vouchers All claims for the period ending May 16, 1994, in the amounts of
$1,995,843.95 were approved for payment.
Voluntary Retirement Incentive Program
Human Resources Manager Viseth reviewed the information distributed with the agenda noting that
in 1993 a similar program had been offered to employees in conjunction with a State retirement
incentive program. Viseth pointed out that the State is not offering such a program this year, but the
City would like to offer a program with the criteria outlined. Viseth stated that there are currently
14 employees that have been identified as being eligible and there may be additional employees that
have service in a participating program outside of the City. If approved, Viseth stated that
employees will need to notify the City of their intent to retire by July 1, 1994 and retire by
August 31, 1994. Eligible employees who choose to participate will receive $400 per year of service
in recognition of their service. She noted that in 1993, 17 employees were eligible out of which 4
took advantage of the program at a cost of $32,000. Viseth stated that the City saved $40,000 in
1994 from these retirements due to hiring at a lower pay level, reduced longevity pay of 3%, etc.,
which will continue to save the City for the next few years at diminishing levels. Viseth asked that
if the program is approved, this item be placed on the consent calendar of the next City Council
meeting.
Committee Chair Johnson asked if the example of $10,000 were used, would the incentive be
reported as retirement. Viseth replied that it would not. She noted that what prevents a number of
people from retiring early is health insurance costs and this program gives some funds to pay for
their own benefits if an employee wished to. Orr moved to accept the recommendation and approve
the program. Houser seconded and the motioned carried 3-0.
safety Awards Program
Risk Manager Chatwin stated that Public Works Operations and Parks Maintenance have requested
a safety program over the years. Chatwin continued that he had found a program that did not create
competition between employees and/or departments that could be used for a year after which the
City could start its own program. Chatwin explained the program is sold in units for 100 employees
and recommended starting with two units with which the City would receive 24 safety films and 8
supervisor films. In addition to education the program has an extensive safety awards program in
which employees who did not have claims for the month would be eligible for a prize drawing. In
reviewing the need for this program Chatwin stated that Public Works Operations had 8 medical
claims and 3 indemnity claims in 1992 which in 1993 rose to 17 medical and 7 indemnity claims.
Chatwin concluded that the expense is for prevention of Worker's Compensation claims and could
be funded out of the Worker's Compensation Trust Fund with the cost being offset by reduced
claims. After a discussion of the costs of claims, Committeemember Houser moved to adopt the
OPERAONS COMMITTEE MINUS, Ca;q
MAY 25, 1994
Safety Awards Program. Orr seconded the motion and asked to add that the program be reviewed
after one year. The amended motion passed 3-0.
Extension of Banking Contract
Finance Manager Miller stated that it has been four years since the City has gone out to bid on a
banking contract at which time U.S. Bank was the low bidder and was awarded the contract for a
term of four years. Miller stated that U.S. Bank has agreed to extend the contract for another year
at the same rates. She noted that they have always had fast follow through and that the contract has
already been extended for one year. Miller stated that next spring she would like to look at new
automation that may be available and consider bidding separate portions of banking services such
as lock -box, credit cards, etc. to evaluate if it would be beneficial to change services or not. Miller
added that she has been looking at accreditation and is working on a banking policy for state and
national certification. Miller asked for authorization to extend the contract with U.S. Bank. Orr so
moved, Houser seconded and the vote passed 3-0.
Finance Manager Miller noted that the last change order on the City Hall remodel was approved in
December for the fire alarm system upgrades. She stated that additional chillers, lighting
adjustments, and electrical changes have been made which will complete the whole building and
should result in savings for electricity. Miller stated that funding for the change order could be
obtained from the combination of the fire generator cost being lower than expected with $100,000
available, $75,000 from the building maintenance project for unexpected costs, and, borrowing the
remainder from the commons air conditioning project which has funds that will not be used until
spring of 1995. Miller added another option would be to use the CIP unallocated funds which has
a balance of $265,000. She noted that the remodeling has made the office space brighter and more
efficient as she distributed handouts of the drawings for the first and second floor layout.
McFall interjected that the total cost is $33 per square foot which is a reasonable remodel cost.
Houser noted that the second floor was the only area originally approved. Orr stated her concern in
utilizing the $75,000 building maintenance fund which would leave no emergency funds if
something happened. Houser suggested using $25,000 from building maintenance which would
leave $50,000; Orr concurred. Johnson asked if the CIP would be enough to cover the expense.
Miller stated that there is currently $265,000 unallocated in addition to the $100,000 remaining in
fire. Johnson suggested using the unanticipated funds of $100,000 with the remainder from the CIP
which would be cleaner. He added that he would be concerned with using the commons air
conditioning fund and stated that he agreed with the need to make the building'more functional.
After further discussion Houser moved to use the remaining $100,000 from the emergency power
generator with the remaining $147,310 coming from the CIP. Orr seconded the motion which
passed unanimously 3-0.
Miller reviewed the City Hall Remodel Status Report with the Committee noting that the Council
Dais will be completed by 6/6 and the third floor by 6/10.
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OP RA�ION COMMITTEE
�- � S MINUTES, Cont'.
" MAY 25, 1994
City Shops R_ ewirin�t
Miller reported that the current wiring at the City Shops is causing problems with *e computers and
could be a safety hazard. Support Services Manager Lindsey elaborated stating that over the years
wiring has been installed and it was recently discovered that there was no true ground.
Compounding this computers, air conditioning, etc. have been added which create surges in the
power and causes the computers to lock up. Lindsey stated the solution requires the addition of
isolated transformers to grounds and putting the computers on a separate circuit. Miller stated that
they are asking for a budget change of $20,000 from water/sewer/storm and $5,000 from parks CIP
funds. She noted that wiring costs could come in lower and recommended a budget change to
continue the project. Houser so moved, Orr seconded and the motion passed 3-0.
Financial Report -A: '
Miller reviewed the April Financial Report with the Committee. On page one Miller noted that the
cash position is below the same time in 1993 due to accounting changes, property tax and revenues
being under 1993, and water/sewer funds being transferred to capital projects. Shq pointed out that
the self insurance fund is ahead by $1 million. On page six Miller noted that the general fund
revenues are low primarily due to lagging income taxes. Committee Chair Johnsou mentioned that
the 30th of April fell on a Saturday which could account for the shortage. In reviewing the general
fund, Miller reminded the Committee that retroactive payments for AFSCME metabexs reduced the
general fund in May. On page nine she noted that sales tax is above forecast by $195,788 through
May. McFall interjected that the unemployment reports have been encouxaging with King County
down to 5% and that the City's leading indicators such as SEPA checklists look hopeful.
During further review Miller indicated that there was an error on the graph on page 13 which will
be corrected and reviewed the activities reported for tenant improvements and new business licenses.
Fines and forfeitures were noted to be 6.1 % ahead of budget. On page 18 Miller noted that golf
revenues were .9% under budget even though vendor revenue is up 10%. A discussion followed on
the golf course revenues. Miller concluded her report stating that the projections at this time indicate
that the general fund balance at the end of 1994 will be approximately $113,377. Miller asked the
Committee to feel free to call her if they have any questions on the pages not reviewed.
Committee Chair Johnson adjourned the meeting at 10:30 a.m.
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