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HomeMy WebLinkAboutCity Council Committees - Operations - 07/03/2012 OPERATIONS COMMITTEE MINUTES July 3, 2012 Committee Members Present: Dennis Higgins, Jamie Perry, Les Thomas, Chair The meeting was called to order by Les Thomas at 4:07 p.m. 1. APPROVAL OF MINUTES DATED JUNE 19, 2012. J. Perry moved to approve the Operations Committee minutes dated June 19, 2012, D. Higgins seconded the motion, which passed 3-0. 2. APPROVAL OF CHECK SUMMARY REPORT DATED JUNE 1 – JUNE 15, 2012. D. Higgins moved to recommend the City Council approve the Check Summary Reports dated June 1 through June 15, 2012. J. Perry seconded the motion, which passed 3-0. 3. RECOMMEND CITY COUNCIL ADOPT AN ORDINANCE AMENDING 2.01.020 OF THE KENT CITY CODE, ENTITLED “CITY COUNCIL MEETINGS,” TO START THE REGULAR CITY COUNCIL WORKSHOPS AT 5:00 PM INSTEAD OF 5:30 P.M. The Kent City Code codifies the regular meeting dates and times of the full Council. The Council has determined that it would be more efficient to amend the code to permanently move the Regular Council Workshops to 5:00 p.m., except when a Regular or Special Council meeting occurs on or before 5:00 p.m. Moved by D. Higgins recommending the Council adopt the amendment 2.01.020 of the Kent City Code entitled “City Council Meetings”. Motion failed for lack of second. L. Thomas preferred there be more discussion on this item as this was the first time some of the committee members were aware of proposed change to the Kent City Code. Following discussion, it was moved by J. Perry, seconded by L. Thomas that this item be tabled until the July 17, 2012 Operations Committee Meeting to allow for further discussion. Motion passed 3-0. 4. RECOMMEND THAT THE OPERATIONS COMMITTEE AUTHORIZE ADMINISTRATION TO APPROVE THE CONSULTANT SERVICES AGREEMENT FOR THE HYAS GROUP TO PROVIDE REVIEW OF THE CITY’S DEFERRED COMPENSATION PROGRAM SUBJECT TO APPROVAL OF TERMS BY THE CITY ATTORNEY’S OFFICE AND SAID CONTRACT BE PLACED ON THE CITY COUNCIL CONSENT CALENDAR FOR JULY 17, 2012. This three-year consultant services agreement with the Hyas Group will provide investment consulting services and oversight of employee owned deferred compensation investment accounts. Through this contract, Hyas Group assumes co-fiduciary responsibility with the City and agrees to monitor and analyze the performance of plan investment options. There are currently 400 plus employees in deferred compensation and fees for this three year agreement with the Hyas Group are paid for by employees in the program. Moved by D. Higgins, seconded by J. Perry, that the above mentioned consultant services agreement with the Hyas Group be forwarded to the City Council Agenda for July 17, 2012, for approval and authorize Administration enter into said agreement. Motion passed 3-0. Operations Committee Minutes July 3, 2012 Page: 2 5. RECOMMEND THE CITY COUNCIL ADOPT THE INVESTMENT POLICY ORDINANCE UPDATING DELEGATION OF AUTHORITY AND ELIMINATING DESIGNATED INSTITUTIONS FOR COLLATERAL ADVANCES. (ADOPT) Since 1996, the City has undergone reorganization making amendments necessary to various titles of delegates of authority. Due to the economic downturn and bankruptcies of lending institutions, amendments are necessary to eliminate designated institutions for collateral advances. City Attorney Brubaker addressed the amendment to the ordinance section 3.02.060, that will add a member of the Operations Committee to the Investment Committee. It was noted that the Mayor will appoint a member of the Operations Committee to the Investment Committee. Moved by J. Perry, seconded by D. Higgins, to recommend the Council adopt the Investment Policy Ordinance updating delegation of authority and eliminating designated institutions for collateral advances. Motion passed 3-0. 6. PROPERTY INSURANCE RENEWAL (INFORMATION ONLY) Risk Manager, Chris Hills, discussed moving the anniversary renewa l date for the City’s property insurance policy from January 1 to July 1 of each year. Costs have increased for the property insurance in 2012, largely based upon weather catastrophes around the country and new inventory completed in the spring of 2012, of City property not currently insured. The new property, valued at $53 million, will now be covered under the City’s property insurance. The overall increase is 22% for insuring the additional property. Mr. Hills noted that the majority of the $53 million dollar increase is due to underground facilities such as conduit vaults and storm sewer lines that were not previously insured. The bulk of the sites are in the newly annexed Panther Lake area of the City. Chair Thomas inquired if rates will be adjusted downward now that the Howard Hanson Dam has been repaired. Mr. Hills added that there is a likelihood, although small, that rates will adjust down given the repair of the dam. While Mr. Higgins does not like to see a 22% increase, all Committee Members agreed that an updated inventory and insuring of those City assets not previously insured is much better for the City overall. 7. AFSCME CLASSIFICATION SALARY INCREASE (INFORMATION ONLY) Labor Relations Manager, Teri Smith, addressed the Committee regarding the increase in classifications of the Combination Building Inspector one salary grade, to AF 34, and Assistant Building Official (Supervisor of Combination Building Inspectors) one salary grade, to AF 40, effective January 1, 2012. These were agreed to address in labor agreements signed in 2011. Ms. Smith mentioned that in 2007, the City Council passed Resolution No. 1775 which relates to comparative salary surveys for non-represented employees. In the spirit of that resolution and for transparency, she wanted to advise the Council of an increase to 6 represented (AFSCME) employees within 2 classifications. Budget impact for the reclassifications is $11,830 (estim ate). Operations Committee Members thanked Ms. Smith for the update. Operations Committee Minutes July 3, 2012 Page: 3 8. ACCEPTANCE OF KING COUNTY SHERIFF’S OFFICE COST REIMBURSEMENT AGREEMENT. (APPROVE) Chief Thomas requested this item be added to the July 3, 2012 Operations Committee Agenda. As he explained, the reason for the importance of the Committee’s approval and forwarding of this agreement to the City Council Meeting of July 3, 2012, is that the City received this agreement today, an agreement that would be used to send offender contact teams into the field and make personal contact with every sex offender living in Kent. This agreement period started July 1, 2012 and will end June 30, 2013. Chief Thomas explained that the grant in the amount of $68,295.91 will ensure that all 324 registered sex offenders, Level I, II, and III, living in Kent will have face-to-face contact with law enforcement officers. Level I offenders will be visited once every twelve months, Level II offenders will be visited once every six months, and Level III offenders will be visited once every three months. Since the Public Safety Committee will not meet until August, Chief Thomas requested the Operations Committee move acceptance of this agreement from the King County Sheriff’s Office to the City Council Meeting of July 3, 2012. Moved by D. Higgins, seconded by J. Perry to recommend that Council authorize the Kent Police Department to accept the King County Sheriff’s Office grant in an amount not to exceed $68,295.91, and authorize the Mayor to sign the agreement and establish the budget. Motion passed 3-0. 9. FINANCIAL SUMMARY REPORT FOR MAY 31, 2012 (INFORMATION ONLY) Based on information available through May, the ending General Fund balance has decreased $10,000 from the previous month, down to $560,000 due largely to a decline in sales tax during May. Mr. Nachlinger hopes that this is only a one month decline. Mr. Nachlinger is concerned about sales tax. He noted that this would be mitigated by good news that the one-time revenues for the sale of the state liquor stores is up $30 million - half goes to local governments split on per capita basis and Kent would receive $445,000 in additional one time revenue. That would make up for the $300,000 decline for liquor excise tax and mitigates the decline in sales tax. Mr. Nachlinger stated that SST in the last two quarters the City will see 3.4% reduction, or a total of $170,000 for one year; total reduction for balance of this year is $85,000. When inquiry was made as to what Administration is preparing for these rising or declining revenues, Mr. Hodgson explained that Administration will leave many open positions unfilled. Administration anticipated savings of $300,000 to cover this decline, but while the trend of permit fees are up 39%, Administration has budged and increase of 2%. Sales tax will be closely monitored and the budget adjusted accordingly as revenues or declining revenues are realized. As promised, Administration will report to the City Council each month with updated financial information and adjustments will be made to accommodate rising or falling revenues. In response to inquiry from L. Thomas, Mr. Nachlinger stated that sales tax revenue from Kent Station is approximately 1.5% of the City’s total sales tax revenues. With utility tax reportedly down every single month, J. Perry requested that Council look at th ese figures and/or trends at a future meeting. Operations Committee Members thanked Mr. Nachlinger for the finance update. Operations Committee Minutes July 3, 2012 Page: 4 The meeting was adjourned at 4:55 p.m. by L. Thomas. ___________________ Patrick Briggs Operations Committee Secretary