HomeMy WebLinkAboutCity Council Committees - Operations - 06/05/2007 111-t��
KENT
W A 5 HIN O T O N
OPERATIONS COMMITTEE MINUTES
JUNE 5, 2007
Committee Members Present: Deborah Ranniger, Debbie Raplee, and Tim Clark, Chair
The meeting was called to order by Tim Clark, Chair at 4:06 p.m.
1. APPROVAL OF MINUTES DATED MAY 15 2007
Debbie Raplee moved to approve the minutes of the May 15, 2007, Operation
Committee meeting. Deborah Ranniger seconded the motion, which passed 3-0.
2. APPROVAL OF VOUCHERS DATED MAY 15, 2007 AND MAY 31 2007
Finance Director Bob Nachlinger presented the vouchers for May 15, 2007, and May 31, 2007,
for approval.
Deborah Ranniger moved to approve the vouchers dated May 15, 2007, and May 31,
2007. Debbie Raplee seconded the motion, which passed 3-0.
3. PREMERA BLUE CROSS CONTRACT
Employee Services Benefits Manager Becky Fowler presented a quick update on the Self Insured
Health Care "Snapshot" via a PowerPoint presentation and then presented the Premera Blue
Cross Contract. Ms. Fowler advised that the city contracts with Premera Blue Cross as a third-
party administrator (TPA) to process claims and provide access to Premera Blue Cross's PPO
network of doctors and hospitals. The city is self-insured for this program and wires the weekly
claims cost to Premera Blue Cross for our medical and dental expenses. The 2007 contract
reflects an approximate 10% increase in administrative fees by Premera Blue Cross and is
budgeted in the health and welfare fund. The budge impact is $647,345. (Administrative
Services Contract). Approximately 97% of the city's employee population is covered under
theself-insured Premera Blue Cross program totaling 2,300 lives. Included in this coverage is our
LEOFF I retirees and their dependents. The overall projected cost of our self-insured plan
inclusive of administration fees is $9,794,135 for 2007 and is budgeted in the health and welfare
fund. Questions were raised by the Committee and Ms. Fowler addressed those those questions.
Debbie Raplee moved to recommend that the Premera Blue Cross Administrative
Services Contract for the city's self-insured health plan be placed on the City Council
consent calendar for the June 19, 2007 meeting. Deborah Ranniger seconded the
motion, which passed 3-0.
4. GROUP HEALTH CONTRACT
Employee Services Benefits Manager Becky Fowler presented the Group Health Contract for
renewal of the Group Health Cooperative of Puget Sound contract for the city's insured health
maintenance organization (HMO). The 2007 contract reflects an approximate 7% increase in the
health care premiums charged by Group Health Cooperative and is budgeted in the health and
welfare fund. The city purchases insurance with Group Health Cooperative of Puget Sound.
Group Health is a non-profit, health maintenance organization (HMO) providing primary care
medical and specialty center throughout the Pacific Northwest. Ms. Fowler advised approximately
Operations Committee Minutes
June 5, 2007
Page: 2
43 employees and their families are covered under our Group Health Cooperative plan and the
budget impact $324,996.
Deborah Ranniger moved move to recommend the 2007 Group Health Cooperative
contract for the city's insured HMO plan be placed on the City Council consent calendar
for the June 19, 2006 meeting. Debbie Raplee seconded the motion, which passed 3-0.
5. FLEXPASS PROGRAM AGREEMENT 2007-2008
Employee Services Benefits Manager Becky Fowler presented Flexpass Program Agreement 2007-
2008. Ms Fowler advised that the city contracts with King County, Sound Transit and Pierce
Transit for the sale of Flexpasses. The FlexPass Program allows for eligible Commute Trip
Reduction (CTR) affected employees to choose from a variety of non-SOV (Single Occupancy
Vehicle) commute options provided by King County Metro, Sound Transit and Pierce Transit. The
value of a pass is $4.75 for each one-way King County Metro bus, Pierce County Transit or
Sounder Rail fare. The pass will also serve as a vanpool pass up to a face value of $65.00 per
month. The new FlexPass contract will result in a 4 percent decrease over last year's contract.
Ms. Fowler further advised that the costs is budgeted in the CTR budget
Debbie Raplee move to recommend that the FlexPass Program Agreement be placed on
the Consent Calendar for the June 19, 2007, City Council Meeting authorizing the Mayor
to sign a one year contract with King County Metro, Sound Transit, and Pierce Transit
for the FlexPass Program. Deborah Ranniger seconded the motion, which passed 3-0.
6. APPROVAL OF THE PLITT COMPANY'S USE OF NON-RECOURSE REVENUE BONDS
THROUGH THE WASHINGTON ECONOMIC DEVELOPMENT FINANCE AUTHORITY -
RESOLUTION
City Attorney Tom Brubaker presented The Plitt Company's Use of Non-Recourse Revenue Bonds
Through the Washington Economic Development Finance Authority - Resolution. Mr. Brubaker
advised that occasionally the City will receive a request from the Washington Economic
Development Finance Authority (WEDFA) for a resolution that acknowledges the City's support of
a development project where the owner intends to use revenue bonds to finance the project.
Such a request was received by the City on May 11, 2007. Mr. Brubaker advised that The Plitt
Company of Chicago, Inc. plans to acquire and rehabilitate an existing seafood processing plant
at 22613 - 76 Avenue South in the City of Kent. It intends to finance this project through
WEDFA's issuance of tax-exempt non-recourse economic development revenue bonds. It is
WEDFA's policy to only issue bonds in support of projects that would be welcomed by local
communities. City administration welcomes the project and has no objection to this financing
proposal. Mr. Brubaker further advised that in passing this resolution, there is no liability against
the City of Kent, the state, or any other political entity created by issuance of WEDFA's bonds.
The bonds will not constitute an obligation of the City and no tax funds or revenues shall be used
to pay the principal or interest. The City of Kent's approval will not waive any of the permitting
requirements applicable to the project.
Debbie Raplee moved to recommend Council adopt the proposed resolution approving
The Plitt Company's use of state Economic Development Finance Authority non-
recourse revenue bonds to acquire and rehabilitate an existing seafood processing
plant at 22613 - 76th Avenue South. Deborah Ranniger seconded the motion, which
passed 3-0.
Operations Committee Minutes
June 5, 2007
Page: 3
7. 4T" QUARTER 2006 FINANCIAL SUMMARY
Finance Director Robert Nachlinger presented a brief review of the 1st Quarter 2007 Financial
Summary Report for informational purposes only.
The meeting was adjourned at 4:45 p.m.
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Renee Cameron
Operations Committee Secretary