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HomeMy WebLinkAboutCity Council Committees - Operations - 07/12/1995 OPERATWNS COMMITTE10MINUTES JULY 12, 1995 COMMITTEE MEMBERS PRESENT: Jon Johnson-Committee Chair, Christi Houser, Leona Orr STAFF PRESENT: Jim Huntington, Charlie Lindsey, Roger Lubovich, May Miller, Brent McFall, Kelli O'Donnell, Ron Spang, Tom Vetsch, Sue Viseth MEMBERS OF THE PUBLIC: Linda Johnson, Dee Moschel, Chuck Turner The meeting was called to order at 9:35 a.m. by Chairperson Johnson. Approval of Vouchers: All claims for the period ending June 30, 1995, in the amount of$1,822,295.27 were approved for payment. Cashiering/Business License Position -Authorization: Finance Division Director May Miller explained that this proposal is to provide staffing for cashiering for business licenses and permits. She added that in the past Finance collected for business licenses. Currently the cashiering function is split between Fire, Planning and Public Works. This has had some problems since the first priority has not been collecting funds. She continued that after meeting with the various departments,this proposal was thought to be the best solution which would combine collection of business licensing with auditing of sales tax. Additionally, these positions would be rotated through Finance for training. During further explanation,Miller noted that the State Auditor had met with her on concerns that the function be in Finance so the account numbers are input correctly. Miller asked that the person scheduled to be hired for the Meridian Annexation in October be hired in August with an additional 1/2 position added to provide coverage. She noted that in 1990 Finance had 21 staff members and with this addition would have 18. Customer Services Manager Vetsch expanded that this proposal would eliminate some problems from collecting in from three different directions which results in having to do journal entries to correct account numbers. In addition to saving time in bookkeeping it is planned to be able to help the customer at both City Hall and the Centennial Center. Committee Member Houser asked if people are currently collecting, why is there the need for additional staff for coverage. Miller responded that currently Development Services is receipting as they have time. Additionally this alternative allows time to audit new business to make sure they are correctly turning in sales tax and should result in some new revenue. She added that the experience of other cities has shown that auditing brings in extra funding. Houser noted her concern that a lot of positions are being added based on the annexation. McFall responded that this case is operational and a customer service issue and would be recommended with or without the annexation. During further discussion, Orr noted that we are at 1990 staffing levels although we have grown by 15%which is the largest increase in the area. McFall replied that he is aware of this and is not using a formula to increase staff across the City but targeting the needs with the lowest cost positions possible. He noted that a cashier would be less expensive than a permit specialist. Vetsch added that this position would also help to add accounts for the annexation to be ready for the first of the year. Orr asked if it was possible to track revenue brought in by auditing. Miller stated she would. Orr moved to recommend adding one full time and one regular part time customer service position for "One Stop" Centennial receipting and business license billing and collection. It is also recommended that a budget change be authorized for$34,647 utilizing$15,000 from general fund revenues and$19,647 from utility funds. Committee Member Houser seconded and the motion passed 3-0. OPERATIOW COMMITTEE MINWES, CONT. IT IT tY 12;_1_995 Bid.Award. - Kent Commons Air Cond.itioning�: Miller introduced Support Services Manager Charlie Lindsey. Lindsey reviewed the proposed contract award as outlined in the memorandum distributed with the agenda. He explained that as previously discussed, air conditioning the entire Commons was cost prohibitive so the bid was set up with a basic contract and alternatives that may be added. The proposed contract would be to cover the basic area as well as the Green River and Mill Creek meeting rooms. He recommended that the bid be awarded to Design Air Limited for$302,335. Houser so moved, Orr seconded and the motion passed 3-0. Kent Saturday Market Facility Acgmisition: Director of Operations Brent McFall stated that the proposed Saturday Market site would be a permanent covered site for the Saturday Market. McFall explained that the Partnership had identified the site of the old Lumberman's yard,which is being offered at$355,000. He noted that the seller is doing an appraisal with the expectation of a higher value coming in which he plans to give as a charitable donation credit for himself. McFall continued that all of the initial analysis indicates this is a viable project with the overall budget of$600,000 for acquisition and the necessary renovations to make it a useable facility for an indoor and outdoor year round market. He stated that cash flow scenarios indicate that this could be funded as a loan from the water reserve which needs to be invested anyway and the City would be allowed to be made whole by the Saturday Market over the life of the agreement. He pointed out the 10 or 15 year scenarios distributed with the agenda. McFall recommended the 10 year financial plan explaining that the agreement will set an escalating lease payment plus 10% of the Saturday Market fees. At the end of the lease the City will own the building. McFall added that the 15 year option would also be acceptable although there would be additional interest costs over the life of the lease. Executive Director of the Kent Downtown Partnership Linda Johnson reviewed pictures of the site as well as proposed drawings with the Committee. Johnson explained that Kevin Broderick had been retained as the architect after interviewing several. In reviewing the design, she noted the clock tower will be added to attract people from the downtown area and the outside will be opened up with glass. Linda stated that a public meeting had been held and many concerns had been addressed through the design of the property. The first phase has 109 spaces on the lot with some in the building and some external and while the second story would not be useable after completion of the first phase. Designs do include necessities for a future second phase such as space for an elevator. She added that she has talked to all of the property owners on Railroad and is proposing a one way street which would allow for 43 spaces utilizing angle parking and is working on contacting property owners on the back alley to propose one way traffic the other way. The outlay of the parking would allow for loading and unloading from Railroad to leisen any impacts on neighbors behind. She noted that the environmental study of the property has not yet been received and that a letter has been sent to Burlington Northern to ask if the park may be utilized for'vendor space. In addition, Kent Gypsum has agreed to allow the use of some of their parking. Johnson summarized that the project seems to be doable and would convert an ignored property into an asset for the downtown. McFall asked for authorization for the Mayor to close on the property and negotiate agreements between the City and Kent Downtown Partnership for the Council's approval. Houser asked how the shortfalls in the first years of the lease would be covered. McFall suggested the use of CIP funds. During further discussion Orr asked what would happen if$600,000 was not enough for the project. Linda Johnson Page 2 OPERATI(*S COMMITTEE MIND TES, CONT. 1111 12, 1995 replied that the Partnership plans to do fund raising alongside this agreement since they would like to pay of the lease sooner. One of the considerations in hiring the architect had been his experience with museums and public involvement. She added the Saturday Market is also considered a business incubator and that two businesses are preparing to open downtown. Being an business incubator should help the Market receive grant funds. McFall assured the Committee that in discussing this project an agreement had been reached that the Downtown Partnership would not be coming back with a bigger request. Linda stated that the Market will be operable with the $600,000. Kent Downtown Partnership President Chuck Turner added that it is his intent to have a major effort to raise funds and that his personal hope is to complete the project before it opens. Linda Johnson stated that the revenue possibilities are expanded due to the commissary and the building can be rented in the evenings. Committee Chair Johnson stated he liked the 15 year lease with the hope that it would be paid off early. During discussion, May noted that the 10%of gross receipts should generate enough revenue to pay it off early. Orr asked if there was a minimum in addition to the 10%. McFall responded that there was and the arraignment was worked out to minimize the City's exposure and have some benefit in success of the prdyzxtmoved that the Mayor be authorized to finalize the acquisition of the property commonly known as 212 Railroad Avenue North for the purpose of establishing a facility for the Saturday Market, and that the funds for the acquisition and improvements be obtained by borrowing up to $600,000 from the Water Operating Funds for a period of 15 years such debt to carry interest rates to be established by the Finance Director at market rates. Further,that the Mayor shall negotiate appropriate agreements with the Kent Downtown Partnership for the operation of the Kent Saturday Market and of the market facility which shall be presented to Council for approval. This is contingent on favorable results of the environmental study of the project. Additionally, a budget change is authorized budgeting the projected shortfall of the debt service to be paid from the CIP for the first three years. Houser seconded and the motion passed 3-0. McFall asked if the item should be placed under Other Business. Johnson responded that it should be. Voluntary Retirement Incentive Pro am Human Resources Division Director Sue Viseth informed the Committee that this would be the third year the City offered the voluntary retirement incentive program noting that the State did not pass an early retirement bill this year but the City would still like to offer it. She stated that ev,pn with offering the recognition reward to those planning to retire,the City saves money up front until the position is filled as well as approximately 20%per year for an entry level position. Viseth explained that since the State is not offering a program, employees must meet the retirement system criteria which currently 14 employees are eligible for. She explained that due to social security benefits the window had been extended so that employees must notify Human Resources of their intent to take advantage of the program by January 1, 1996 and must retire by January 31, 1996. Orr moved to recommend authorization to implement the Voluntary Retirement Incentive Program in which eligible employees would receive $400 for each year of service to the City of Kent based upon the last full year of service to the City of Kent in recognition of employees' dedication and years of service. Houser seconded the motion which passed 3-0. Cellular Phone Usage Report Information Services Division Director Ron Spang stated that the advances in technology have expanded the use of phone lines for everything from laptops to security systems and even the new microwave system. He explained that the standard use for cellular phones in the City is to increase productivity such as police Page 3 OPERATIC* COMMITTEE MIN4ES, CONT. having them in patrol calls so they may contact citizens in route. Traffic engineers can use them to feed information to traffic signals from any location. The average cost of the phones is $561 per year with air time. He noted that alternatives are being looked at to improve efficiency such as forwarding cellular phones to an office phone when turned off and that AT&T has offered to provide some training on alternatives. Johnson noted his concern that there seemed to be inconsistency in usage between similar job titles. During further discussion, McFall noted that City policy is to use the least expensive communications possible. Johnson noted that he was impressed by the low number of personal calls which is a compliment to employees. The Committee asked to have those accounts with over $100 of calls summarized with an explanation of the usage. Added Items May Miller asked if the Committee had any preference on the Budget Calendar. She proposed that a public hearing on the budget be added to the August 1 st meeting as well as the 1996 CIP public hearing. She also proposed a workshop on August 15 to review the financial report and the CIP. McFall added that there may be a need for a special meeting to adopt an annexation ordinance. There being no further business, Committee Chair Johnson moved to adjourn the meeting at 10:55 a.m. Page 4 OPERATA NS COMMITTE19MINUTE S JULY 12, 1995 COMMITTEE MEMBERS PRESENT: Jon Johnson-Committee Chair, Christi Houser, Leona Orr STAFF PRESENT: Jim Huntington, Charlie Lindsey, Roger Lubovich, May Miller, Brent McFall, Kelli O'Donnell, Ron Spang, Tom Vetsch, Sue Viseth MEMBERS OF THE PUBLIC: Linda Johnson, Dee Moschel, Chuck Turner The meeting was called to order at 9:35 a.m. by Chairperson Johnson. Approval of Vouchers: All claims for the period ending June 30, 1995, in the amount of$1,822,295.27 were approved for payment. Cashiering/Business License Position -Authorization: Finance Division Director May Miller explained that this proposal is to provide staffing for cashiering for business licenses and permits. She added that in the past Finance collected for business licenses. Currently the cashiering function is split between Fire, Planning and Public Works. This has had some problems since the first priority has not been collecting funds. She continued that after meeting with the various departments, this proposal was thought to be the best solution which would combine collection of business licensing with auditing of sales tax. Additionally, these positions would be rotated through Finance for training. During further explanation,Miller noted that the State Auditor had met with her on concerns that the function be in Finance so the account numbers are input correctly. Miller asked that the person scheduled to be hired for the Meridian Annexation in October be hired in August with an additional '/2 position added to provide coverage. She noted that in 1990 Finance had 21 staff members and with this addition would have 18. Customer Services Manager Vetsch expanded that this proposal would eliminate some problems from collecting in from three different directions which results in having to do journal entries to correct account numbers. In addition to saving time in bookkeeping it is planned to be able to help the customer at both City Hall and the Centennial Center. Committee Member Houser asked if people are currently collecting, why is there the need for additional staff for coverage. Miller responded that currently Development Services is receipting as they have time. Additionally this alternative allows time to audit new business to make sure they are correctly turning in sales tax and should result in some new revenue. She added that the experience of other cities has shown that auditing brings in extra funding. Houser noted her concern that a lot of positions are being added based on the annexation. McFall responded that this case is operational and a customer service issue and would be recommended with or without the annexation. During further discussion, Orr noted that we are at 1990 staffing levels although we have grown by 15% which is the largest increase in the area. McFall replied that he is aware of this and is not using a formula to increase staff across the City but targeting the needs with the lowest cost positions possible. He noted that a cashier would be less expensive than a permit specialist. Vetsch added that this position would also help to add accounts for the annexation to be ready for the first of the year. Orr asked if it was possible to track revenue brought in by auditing. Miller stated she would. Orr moved to recommend adding one full time and one regular part time customer service position for "One Stop" Centennial receipting and business license billing and collection. It is also recommended that a budget change be authorized for$34,647 utilizing$15,000 from general fund revenues and$19,647 from utility funds. Committee Member Houser seconded and the motion passed 3-0. OPERATIO* COMMITTEE MINLOES, CONT. II TI ,Y 12, 199- _ Bid.Award. - Kent Commons Air Conditioning: Miller introduced Support Services Manager Charlie Lindsey. Lindsey reviewed the proposed contract award as outlined in the memorandum distributed with the agenda. He explained that as previously discussed, air conditioning the entire Commons was cost prohibitive so the bid was set up with a basic contract and alternatives that may be added. The proposed contract would be to cover the basic area as well as the Green River and Mill Creek meeting rooms. He recommended that the bid be awarded to Design Air Limited for$302,335. Houser so moved, Orr seconded and the motion passed 3-0. Kent Saturday Market Facility Acquisition: Director of Operations Brent McFall stated that the proposed Saturday Market site would be a permanent covered site for the Saturday Market. McFall explained that the Partnership had identified the site of the old Lumberman's yard,which is being offered at$355,000. He noted that the seller is doing an appraisal with the expectation of a higher value coming in which he plans to give as a charitable donation credit for himself. McFall continued that all of the initial analysis indicates this is a viable project with the overall budget of$600,000 for acquisition and the necessary renovations to make it a useable facility for an indoor and outdoor year round market. He stated that cash flow scenarios indicate that this could be funded as a loan from the water reserve which needs to be invested anyway and the City would be allowed to be made whole by the Saturday Market over the life of the agreement. He pointed out the 10 or 15 year scenarios distributed with the agenda. McFall recommended the 10 year financial plan explaining that the agreement will set an escalating lease payment plus 10% of the Saturday Market fees. At the end of the lease the City will own the building. McFall added that the 15 year option would also be acceptable although there would be additional interest costs over the life of the lease. Executive Director of the Kent Downtown Partnership Linda Johnson reviewed pictures of the site as well as proposed drawings with the Committee. Johnson explained that Kevin Broderick had been retained as the architect after interviewing several. In reviewing the design, she noted the clock tower will be added to attract people from the downtown area and the outside will be opened up with glass. Linda stated that a public meeting had been held and many concerns had been addressed through the design of the property. The first phase has 109 spaces on the lot with some in the building and some external and while the second story would not be useable after completion of the first phase. Designs do include necessities for a future second phase such as space for an elevator. She added that she has talked to all of the property owners on Railroad and is proposing a one way street which would allow for 43 spaces utilizing angle parking and is working on contacting property owners on the back alley to propose one way traffic the other way. The outlay of the parking would allow for loading and unloading from Railroad to lessen any impacts on neighbors behind. She noted that the environmental study of the property has not yet been received and that a letter has been sent to Burlington Northern to ask if the park may be utilized for vendor space. In addition, Kent Gypsum has agreed to allow the use of some of their parking. Johnson summarized that the project seems to be doable and would convert an ignored property into an asset for the downtown. McFall asked for authorization for the Mayor to close on the property and negotiate agreements between the City and Kent Downtown Partnership for the Council's approval. Houser asked how the shortfalls in the first years of the lease would be covered. McFall suggested the use of CIP funds. During further discussion Orr asked what would happen if$600,000 was not enough for the project. Linda Johnson Page 2 OPERATICSS COMMITTEE MINWES, CONT. TT TL,Y 12, 199- replied that the Partnership plans to do fund raising alongside this agreement since they would like to pay of the lease sooner. One of the considerations in hiring the architect had been his experience with museums and public involvement. She added the Saturday Market is also considered a business incubator and that two businesses are preparing to open downtown. Being an business incubator should help the Market receive grant funds. McFall assured the Committee that in discussing this project an agreement had been reached that the Downtown Partnership would not be coming back with a bigger request. Linda stated that the Market will be operable with the$600,000. Kent Downtown Partnership President Chuck Turner added that it is his intent to have a major effort to raise funds and that his personal hope is to complete the project before it opens. Linda Johnson stated that the revenue possibilities are expanded due to the commissary and the building can be rented in the evenings. Committee Chair Johnson stated he liked the 15 year lease with the hope that it would be paid off early. During discussion, May noted that the 10%of gross receipts should generate enough revenue to pay it off early. Orr asked if there was a minimum in addition to the 10%. McFall responded that there was and the arraignment was worked out to minimize the City's exposure and have some benefit in success of the prdg¢tmoved that the Mayor be authorized to finalize the acquisition of the property commonly known as 212 Railroad Avenue North for the purpose of establishing a facility for the Saturday Market, and that the funds for the acquisition and improvements be obtained by borrowing up to $600,000 from the Water Operating Funds for a period of 15 years such debt to carry interest rates to be established by the Finance Director at market rates. Further,that the Mayor shall negotiate appropriate agreements with the Kent Downtown Partnership for the operation of the Kent Saturday Market and of the market facility which shall be presented to Council for approval. This is contingent on favorable results of the environmental study of the project. Additionally, a budget change is authorized budgeting the projected shortfall of the debt service to be paid from the CIP for the first three years. Houser seconded and the motion passed 3-0. McFall asked if the item should be placed under Other Business. Johnson responded that it should be. Voluntary Retirement Incentive Program Human Resources Division Director Sue Viseth informed the Committee that this would be the third year the City offered the voluntary retirement incentive program noting that the State did not pass an early retirement bill this year but the City would still like to offer it. She stated that eygu with offering the recognition reward to those planning to retire,the City saves money up front until the position is filled as well as approximately 20%per year for an entry level position. Viseth explained that since the State is not offering a program, employees must meet the retirement system criteria which currently 14 employees are eligible for. She explained that due to social security benefits the window had been extended so that employees must notify Human Resources of their intent to take advantage of the prgam by January 1, 1996 and must retire by January 31, 1996. Orr moved to recommend authorization to implement the Voluntary Retirement Incentive Program in which eligible employees would receive$400 for each year of service to the City of Kent based upon the last full year of service to the City of Kent in recognition of employees' dedication and years of service. Houser seconded the motion which passed 3-0. Cellular Phone Usage Report Information Services Division Director Ron Spang stated that the advances in technology have expanded the use of phone lines for everything from laptops to security systems and even the new microwave system. He explained that the standard use for cellular phones in the City is to increase productivity such as police Page 3 OPERATIOI& COMMITTEE MINL*ES, CONT. y TI TT,Y 12,1905 � =�- + y M having them in patrol calls so they may contact citizens in route. Traffic engineers can use them to feed information to traffic signals from any location. The average cost of the phones is $561 .per year with air time. He noted that alternatives are being looked at to improve efficiency such as forwarding cellular phones to an office phone when turned off and that AT&T has offered to provide some training on alternatives. Johnson noted his concern that there seemed to be inconsistency in usage between similar job titles. During further discussion, McFall noted that City policy is to use the least expensive communications possible. Johnson noted that he was impressed by the low number of personal calls which is a compliment to employees. The Committee asked to have those accounts with over $100 of calls summarized with an explanation of the usage. Added Items May Miller asked if the Committee had any preference on the Budget Calendar. She proposed that a public hearing on the budget be added to the August 1 st meeting as well as the 1996 CIP public hearing. She also proposed a workshop on August 15 to review the financial report and the CIP. McFall added that there may be a need for a special meeting to adopt an annexation ordinance. There being no further business, Committee Chair Johnson moved to adjourn the meeting at 10:55 a.m. Page 4