Loading...
HomeMy WebLinkAboutCity Council Committees - Operations - 03/03/2015 KENT WASHINGTON OPERATIONS COMMITTEE MINUTES March 3, 2015 Committee Members Present: Dana Ralph, Interim Chair, Jim Berrios, Substitute, Les Thomas, Chair - Excused, Bill Boyce - Excused. The meeting was called to order by D. Ralph at 4:00 p.m. 1. APPROVAL OF THE CHECK SUMMARY REPORT DATED 1/16/2015 THRU 1/31/2015 AND 2/1/15 THRU 2/15/15. I Berrios moved to approve the check summary report dated 1/16/2015 thru 1/31/2015 and 2/1/15 thru 2/15/15. D. Ralph seconded the motion, which passed 2-0. 2. APPROVAL OF MINUTES DATED FEBRUARY 3, 2015. J. Berrios moved to approve the Operations Committee minutes dated February 3, 2015. D. Ralph seconded the motion, which passed 2-0. 3. 2015 LTGO REFUNDING BONDS. Finance Director A. BeMiller introduced to the committee Deanna Gregory from Pacifica Law Group. Pacifica Law Group works as the City's bond counsel. Kent is working to refund/refinance the City's 2006 and 2008A General Obligations bonds. For maximum flexibility, the 2008A series is included in this refunding ordinance. However, it is unlikely that market conditions will exist in which the City will refund the 2008A series in 2015. The City is in no way obligated to refund these bonds. The principal balance remaining on the 2006 bonds is $9.4 million and $19.995 million on the 2008A bonds. The refunding ordinance allows for the Mayor or a designated representative to approve the final refunding as long as the following conditions are met: - The aggregate principal amount of the Bonds does not exceed $30 million, and - The final maturity date is no later than December 1, 2025, and - Each series of Bonds are sold in the aggregate at a price not less than 97% and not greater than 130%, and - Any Bonds sold for the purpose of refunding must result in a minimum net present value savings of at least 3.00% and, - The true interest cost for each series of Bonds, in the aggregate, does not exceed 3.50% and, - The refunding must take place before the end of 2015. The refunding ordinance requires that the Finance Director provide a report to the Council describing the final terms of the refunding(s). The scheduled closing date on the 2006 series is April 30, 2015. There is no scheduled closing date on the 2008A series for the reasons mentioned above. Current estimates on the 2006 series are a net present value savings of $766,000 or about 9% on the refunded bonds, and a true interest cost of 2.22%. Operations Committee Minutes March 3, 2015 Page: 2 The purpose of the 2006 bonds was to finance improvements at certain city parks and land acquisition for future parks. The improvements included the Service Club ball fields, East Hill Skate Park, and the Town Square Plaza. The purpose of the 2008 bonds included financing the design and construction of the public works maintenance facility, renovate the municipal court facility, and implement the capital components of the City's 2008 technology plan. J. Berrios moved to recommend Council adopt Ordinance No. , providing for the issuance of one or more series of limited tax general obligation refunding bonds of the City in the aggregate principal amount of not to exceed $30,000,000 to refund certain outstanding limited tax general obligation bonds of the City and to pay costs of issuing the bonds; providing the form and terms of the bonds; and delegating the authority to approve the final terms of the bonds. D. Ralph seconded the motion which passed 2-0. 4. 2014 SUPPLIMENTAL BUDGET ORDINANCE. A. BeMiller brought before the committee the technical gross budget adjustment ordinance reflecting an overall budget increase of $14,966,147. The supplemental budget adjustment is comprised of two items: $14,491,147 for the 2014 LTGO bond refunding (refinancing). This adjustment is necessary to complete the required final steps to account for the 2014 bond refunding. $475,000 to cover maintenance and operating costs for the ShoWare Center. I Berrios moved to recommend Council approve the supplemental budget ordinance, reflecting an overall budget increase of $14,966,147. D. Ralph seconded the motion which passed 2-0. S. INDEPENDENT SALARY COMMISSION ORDINANCE City Attorney T. Brubaker reminded the committee that under state law, city council currently sets the salaries of the council members and the mayor. He noted that it has been over 10 years since the city council and mayor have received a salary adjustment. Revised Code of Washington (RCW) section 35.21.015 authorizes a city to establish a salary commission to review and adjust elected official salaries and provides that commission action supersedes any other state statute, provision, or city ordinance related to either municipal budgets or to the fixing of salaries. This ordinance establishes that commission. The mayor appoints five independent members from the community and the council approves the commissioners. HR staff would help guide this commission. If the commission elects to include a conservative, fixed inflation factor to address future inflationary trends as part of its salary decision, the council will authorize the commission to be disbanded and this ordinance—but not the salaries established by the commission— can be repealed. If the commission elects not to include a conservative, fixed inflation factor to address future inflationary trends, then the commission will continue to operate, holding at least annual commission meetings. Operations Committee Minutes March 3, 2015 Page: 3 J. Berrios moved to recommend Council adopt an ordinance amending Title 2 of the Kent City Code by adding a new chapter 2.58, entitled "Independent Salary Commission," and establishing the commission to review, establish, increase, or decrease mayor and council member's salaries. D. Ralph seconded the motion which passed 2-0. The meeting was adjourned at 4:20 p.m. by D. Ralph. l U Annalise LaPorte Operations Committee Secretary