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HomeMy WebLinkAboutCity Council Committees - Operations - 08/07/2012 OPERATIONS COMMITTEE MINUTES August 7, 2012 Committee Members Present: Les Thomas, Chair, and Jamie Perry The meeting was called to order by L. Thomas at 4:05 p.m. Excused Absence for Council President D. Higgins. 1. APPROVAL OF MINUTES DATED JULY 17, 2012 J. Perry moved to approve the Operations Committee minutes dated July 17, 2012. L. Thomas seconded the motion, which passed 2-0. Concurrence from Council President D. Higgins noted. 2. APPROVAL OF CHECK SUMMARY REPORT DATED JULY 1 – JULY 15, 2012 J. Perry moved to recommend the City Council approve the Check Summary Reports dated July 1 through July 15, 2012. L. Thomas seconded the motion, which passed 2-0. Concurrence from Council President D. Higgins noted. 3. KIVA SYSTEM UPGRADE (AUTHORIZE) Curt Ryser, IT Systems Manager, updated Committee Members that the KIVA system was initially installed in 1999. KIVA Systems was acquired in 2001 by Accela Automation. The City of Kent servers are older and minimal updating of these systems is mandatory to keep the system operational. In 2007 the City began looking for an upgrade to the KIVA system. In 2011 the city was ready to acquire the new system, but the downtown in the economy placed the acquisition on hold. Minimal upgrading is required and even minimal upgrades will still place the system behind current operational standards. The current owners of KIVA Systems will not be supporting these systems in the very near future. Before you today is a request to upgrade three core serves at a cost of $182,658 that will stabilize and hopefully keep the permitting system operational at the City of Kent for another 3-to-5 years. Motion by J. Perry recommending the City Council authorize the Mayor to sign all necessary documents to enter into agreements with independence enterprises, inc., Selectron Technologies, Inc., Hewlett-Packard, DLT Solutions and Active Networks required to upgrade the KIVA Permitting System subject to approval of the final terms and conditions by the Information Technology Director and the City Attorney in an amount not to exceed $182,658.17, including applicable state taxes. Motion seconded by L. Thomas. Motion passed 2-0. Concurrence by Council President D. Higgins noted. Operations Committee Minutes August 7, 2012 Page: 2 4. LIMITED TAX GENERAL OBLIGATION BOND REFUNDING ORDINANCE (APPROVE) Robert Nachlinger, Finance Director, asked the City Council to authorize issuance of the 2012 Refunding Bonds to annul the outstanding 2000 and 2002 Bonds. Staff recommends this transaction in order to save approximately $1.6 million over the remaining life of the 10 years of those bonds. Budget impact is a reduction in the debt service costs annually each year from 2012 through 2022. Total savings on this transaction is anticipated to be equal to or greater than 13% of the debt service cost. Motion by J. Perry, seconded by L. Thomas, recommending the City Council authorize issuance of the 2012 Refunding Bonds in an amount not to exceed $13,000,000 to refund the outstanding 2000 and 2002 Limited Tax General Obligation Bonds. Motion passed 2-0. Concurrence by Council President D. Higgins noted. 5. JUNE FINANCIAL SUMMARY REPORT (INFORMATION ONLY) Robert Nachlinger, Finance Director, in reviewing the June financial report presented to the Operations Committee, expressed his concern with sales tax reports that came in lower than expected. Actuals are reporting $334,000 off in revenues and 6% under budget in sales tax year-to-date. While the City is currently under spending our budget, it is hoped that that will offset this decrease we are experiencing. Utility tax came in 1% under budget but those losses will hopefully be made up with permit fees, recreation fees, etc. Mr. Nachlinger did report that he will present a revenue forecast report to the Operations Committee at their August 21, 2012 meeting. J. Perry commented that sales tax revenue is coming in under the 2011 actual. The meeting was adjourned at 4:18 p.m. by L. Thomas. ___________________ Patrick Briggs Operations Committee Secretary