Loading...
HomeMy WebLinkAboutCity Council Committees - Operations - 05/17/2011 OPERATIONS COMMITTEE MINUTES May 17, 2011 Committee Members Present: Jamie Perry, Les Thomas (Chair), Debbie Raplee not in Attendance (Excused Absence) The meeting was called to order by L Thomas at 4:00 p.m. 1. APPROVAL OF MINUTES DATED MAY 3, 2011 J Perry moved to approve the Operations Committee minutes dated April 5, 2011. L Thomas seconded the motion, which passed 3-0 (with D Raplee’s concurrence). 2. APPROVAL OF VOUCHERS DATED APRIL 30, 2011 AND MAY 15, 2011 J Perry moved to approve the vouchers dated April 30, 2011 and May 15, 2011 (not originally on agenda). L Thomas seconded the motion, which passed 3-0 (with D Raplee’s concurrence). 3. DISCUSSION ON BONDING (INFORMATIONAL ONLY) Finance Director R Nachlinger advised the City has the opportunity to undertake a refunding of a portion of the 2000 and 2002 LTGO bonds and save approximately $1.176 million over the next ten years. In 2007 we issued the first portion of an anticipated $6 million Technology Plan. At that point we issued half of the bonds, $3 million. We think we can complete the plan with another $2.4 million, so are proposing that with the cost of issuance, issuing an additional 2.5 million. The good news is that with the savings generated from the refunding, the principle and interest will pay back as a net effect of about $2.25 million in additional costs. So we would be borrowing $2.5 million and after the refunding will pay an additional $2.25 million back. The refunding is in the packet. R Nachlinger provided a handout with a proposed $2.5 million Technology Plan and charts that Councilmember D. Ranniger had requested to see on total debt service and the effect of the refunding and the new bonds. L Thomas questioned if looking for optimum time to proceed. R Nachlinger indicated he is looking to do this bond issue on or about the end of June. M Carrington was present to answer questions regarding the Tech Plan. J Perry requested that M. Carrington go through the list and discuss what would happen if we do not do this, the KIVA replacement in particular since that is the big ticket item. M Carrington advised that this product is no longer sold or supported by the vendor and has been propped up for quite a while now. This is a system that is critical for being able to support the way the permitting office and some other supporting offices do business. Their primary system would not be available to them if there were a major break in the system. J Perry asked if this would fund the entire replacement of KIVA. M Carrington responded that it would fund the remaining expenditures in order to award the contract for the new vendor that has been selected and to deploy the product. L Thomas inquired as to how old the current KIVA system is. M Carrington replied it has been around 7 years and this particular version of the product is 8 years old. L Thomas questioned a bond for 20 years for a system that might only last another 7-8 years. M Carrington advised that they hope to get at least 8-12 years out of the next system. He explain ed one of the things IT does as a strategic approach to technology is to try and get out of very specialized systems and move to ones that are more generic. We can add extensions that we can either build ourselves or have produced by third party vendors. L Thomas questioned R Nachlinger as to what our percent of bonding is at this point. R Nachlinger explained general rule of thumb is 15% of General Fund expenditures. We are currently over that now because with the departure of the Fire Department our expenditures went down substantially. We are currently at about $9.5 million Operations Committee Minutes May 17, 2011 Page: 2 in LTGO debt service costs, 15% would be $9 million in a $60 million budget. If the budget increases and we pay off debt, there will be a time in about 3-4 years where we will be down below 15% if we do no additional bonding. J Perry questioned the wireless mobile routers, CAD and Valley Communications. M Carrington advised that Valley Communications is moving to a new records management and dispatch system, Tiburon. In support of that, there are a number of initiatives we have had to take in order to leverage the technology they are moving to. L Thomas asked for an explanation of the last item on the list, connection to conference rooms between Council Chambers and 2nd floor. M Carrington explained that there a number of things in Council Chambers are very old, connectivity through both cabling and wireless electronics that are utilized by conference rooms right now that need to be upgraded. We are looking in the future to having all conference rooms throughout the city connected, including the potential for connecting to fire stations and police substations by upgrading our wireless infrastructure. This is both a cabling and equipment line item. L Thomas questioned if this is Phase 1, is there a Phase 2 & 3. M Carrington responded that they would come back in a later Tech Plan asking for the ability to take on at least a Phase 2. Phase 1 start s with Council Chambers and with the 2nd floor conference rooms in City Hall. Phase 2 would allow us to spread to the Centennial Building, substations and fire stations, connecting those conference rooms. The meeting was adjourned at 4:18 p.m. by L Thomas. _________________________ Nancy Clary Operations Committee Secretary