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OPERATIONS COMMITTEE MINUTES
April 6, 1993
COMMITTEE MEMBERS PRESENT: Christi Houser
Leona Orr
STAFF PRESENT: Tony McCarthy
May Miller
Roger Lubovich
Tom Brubaker
Don Wickstrom
Sue Viseth
Alana McIalwain
Dee Gergich
MEMBERS OF THE PUBLIC: Don McDaniels
Lon Hurd
Miles Overholt
Bill Doolittle
Al Barry
The meeting was called to order at 2:40 p.m. by Chairperson Houser.
APPROVAL OF VOUCHERS
All claims for the period ending 3/15/93 in the amount of $1,207,247.03; and for the period
ending 3/31/93 in the amount of$2,077,595.32 were approved.
DEBT REFINANCING PROPOSALS
Acting Finance Director Miller updated the Committee regarding the two refinancing proposals
for a portion of the City's voted and non-voted bond issues. She noted that Standard & Poor's
will maintain the City's A+ bond rating which is good news due to current economic conditions.
She stated that Dick King, Lehman Brothers, has notified them that to proceed with refinancing
may not be in the best financial interest of the City at this time because the market has been
flooded with refinancing proposals, but that he will continue to evaluate the market and bring
the most current information to the City. Al Barry, Lehman Brothers, discussed and passed out
information regarding the General Obligation Bonds Refunding and a Revenue Bond Buyer Index
chart. ORR MOVED approval for the City to continue working with Lehman Brothers and,
whenever feasible, to bring the refinancing issue to Council. Houser seconded and the motion
carried 2-0.
PROCUREMENT ORDINANCE MODIFICATIONS
City Attorney Lubovich explained that the ordinance modifications will provide for reporting of
consultant contracts and include such things as: 1) who the contract is with; 2) what it is for;
3) the compensation amounts, and; 4) the term. He noted that the ordinance will require a
report to be submitted to the Council every six months and that a disclosure statement form is
included to make sure that there is no conflict of interest with those entering into a contractual
agreement. ORR MOVED for the approval of the Procurement Ordinance Modifications with
the condition that it isn't causing too much work for City staff. Houser seconded and the motion
carried 2-0.
ACCEPTANCE OF PUGET POWER GRANT - SENIOR HOUSING
Administration Manager McIalwain stated that these funds, in the amount of$23,470, are being
received from Puget Power as a result of the City meeting some energy codes. She explained
that the City spent about $18,000 in addition to the original contract with the Bellewood
Corporation and that Larry Metler informed her of this grant opportunity for which the City
applied. ORR MOVED to accept the Puget Power Grant money of$23,470. Houser seconded
and the motion carried 2-0.
CABLE TV REFRANCHISING AGREEMENT UPDATE
Assistant City Attorney Brubaker clarified that this will be an action item for the Committee.
He noted that there are two separate draft ordinances attached which need approval: 1) Kent
Master Ordinance, which applies to all cable TV companies doing business in Kent, and; 2) Kent
Franchise Ordinance with TCI. He explained that cable TV companies need a franchise
ordinance in order to operate their systems using the City's right-of-ways and streets, and that
the current franchise agreement will terminate at the end of 1993. He noted that Federal law
controls the city's franchising authority but that the city has authority to grant a franchise. He
noted that the City is more or less obligated to reissue a franchise unless it can prove the cable
operator has totally failed in providing minimum levels of service. He stated that the City's
single most bargaining tool is the length of the franchise term. He passed out a bulletin from
3-H Cable Communications Consultants regarding Cable Television Rate Regulations, dated
April 6, 1993 (a new Federal law). He explained that things have to be done before this law
will have any impact even though its already been passed. He reviewed the current franchise
and what the new franchise would offer the City. ORR MOVED to approve the Kent Franchise
Ordinance and the Kent Master Ordinance, and send on to the Counoil for two public hearings,
one for each ordinance, to be held on the same day. Houser seconded and the motion carried
2-0. Lubovich clarified that the Master Ordinance has to be put in place and adopted before the
Franchise Ordinance can be adopted. Brubaker explained that these were draft ordinances that
would probably be amended slightly before adoption.
U S WEST CELLULAR SERVICE - ADDED ITEM
Dee Gergich, Telecommunications Analyst, noted that this is an information item only. She
noted that Police Chief Crawford was presented by the Kent Police Union an agreement for US
West Cellular to provide government rates to the Police Officers for personal use. She noted
that McCarthy agreed to let them work it out and asked her to research the possibility of offering
the same service to all employees. Acting Finance Director Miller stressed that the employees
would pay their own bills but at the cheaper rate offered at government rates.
EXECUTIVE SESSION
Assistant City Attorney Brubaker requested an executive session of about 5 minutes to discuss
cable negotiations. The meeting recessed into executive session at 3:42 p.m.,
The meeting reconvened at 3:50 p.m. and was adjourned.