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HomeMy WebLinkAboutCity Council Committees - Operations - 06/19/2012 OPERATIONS COMMITTEE MINUTES June 19, 2012 Committee Members Present: Dennis Higgins, Jamie Perry, Les Thomas, Chair The meeting was called to order by L. Thomas at 4:00 p.m. 1. APPROVAL OF MINUTES DATED JUNE 5, 2012. J. Perry moved to approve the Operations Committee minutes dated June 5, 2012. D. Higgins seconded the motion, which passed 3-0. 2. APPROVAL OF CHECK SUMMARY REPORT DATED MAY 16 – MAY 31, 2012 D. Higgins moved to recommend the Council approve the Check Summary Reports dated May 16 through May 31, 2012. J. Perry seconded the motion, which passed 3-0. 3. RECOMMEND CITY COUNCIL ADOPT A RESOLUTION ACKNOWLEDGING THE FORMATION OF THE COMMUNITY CONNECTIVITY CONSORTIUM AND ITS CHARTER AND AUTHORIZING THE MAYOR TO ENTER INTO AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF KENT AND OTHER GOVERNMENT AGENCIES FOR THE CONSTRUCTION AND MANAGEMENT OF FIBER OPTIC PROJECTS. This item was presented previously at the June 19 Operations Committee Meeting as an discussion item. J Perry still has concerns regarding the governance structure, noting the strong Eastside ties. M Carrington, IT Director, stated that to begin the process of having a vote as a member, we must first serve one year as a non-voting member. Although not a full member we would still have a voice on fiber optic projects. The committee understands the value of having a seat at the table. D Higgins decided to abstain from the vote. The Committee agreed to put the item on the Consent Calendar at the July 3 Council meeting. J Perry recommend City Council adopt a resolution acknowledging the formation of the Community Connectivity Consortium and its charter and authorizing the Mayor to enter into an interlocal agreement between the city of Kent and other government agencies for the construction and management of fiber optic projects. The motion passed 2-0. D Higgins abstained from the vote. 4. MOVE TO RECOMMEND THAT THE OPERATIONS COMMITTEE AUTHORIZE ADMINISTRATION TO UNDERTAKE A REFUNDING OF THE 2000 AND 2002 LTGO BONDS WHICH WILL SAVE APPROXIMATELY $1.65 MILLION ON A CASH BASIS AND $1.49 MILLION ON A PRESENT VALUE BASIS. This transaction will retire the outstanding debt with the issuance of new debt at a lower interest rate paying off the debt at the same time at a lower cost. The new interest rate will result in a General Capital fund savings averaging $160,000 a year over the next ten years. Administration will prepare all of the necessary documents and come back to City Council for final approval of the transaction. (Cont’d on Page 2) Operations Committee Minutes June 19, 2012 Page: 2 D Higgins moved to recommend that the Operations Committee authorize Administration to undertake a refunding of the 2000 and 2002 LTGO bonds which will save approximately $1.65 million on a cash basis and $1.49 million on a present value basis. J Perry seconded the motion, which passed 3-0. 5. INTERLOCAL AGREEMENT WITH MAPLE VALLEY FOR COURT AND JAIL SERVICES (INFORMATION ONLY) Maple Valley is currently in an Agreement with Enumclaw, which is coming to a mutual end. Maple Valley and the City of Kent have been negotiating a two-year interlocal agreement of court services and limited jail services. The Agreement would go into effect January of 2013. The revenue would be $175,000 a year, which is determined by monthly filings. The proposed Agreement is in line with other local cities. Court Service: Essentially, they are providing the judge and Kent will provide the staff. Additional fees will be paid by the individual courts. It would not require Kent to hire any additional staff. Jail Service: We will rent Maple Valley two jail beds. The revenue would equate to $80,000 a year for the bed rental and $12,000 a year in booking fees. The Interlocal Agreement will be brought back at the first meeting in July for consideration of an actual Interlocal Agreement. 6. SUMMARY FINANCIAL REPORT FOR APRIL 30, 2012 (INFORMATION ONLY) Based on information available through April, the ending General Fund balance will grow by $570,000 and is expected to end the year at $1,869,060 or 3.3% of the expenditure budget. Many revenue sources, including utility tax, building permits and plan check fees are showing an improvement over past years. Overall revenues are estimated to end the year very near budget. Highlights include: Tax revenues, including Sales Tax and Utility Tax, are expected to come in very near budget. The Washington State budget cut Liquor Excise Tax distributions to local governments for their fiscal year July 2012 thru June 2013. As a result, these revenues are expected to come in about $284,800 under budget; $221,000 reflected in the General Fund and $63,800 in Annexation. Staff is currently evaluating options to compensate for the lost revenues. Building Permits and Plan Check Fees combined thru April are up 21.5% from the same time last year, which continues to be a positive sign. Current projections end the year at about $674,209 or 1.1% below the budget. A continued lag in hiring is expected to contribute towards expenditures coming in below budget. The meeting was adjourned at 4:36 p.m. by L. Thomas. ___________________ Pamela Clark Operations Committee Secretary