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HomeMy WebLinkAboutCity Council Committees - Operations - 04/21/2015 N* T JR, 'Nn 4niir Crr4w OPERATIONS COMMITTEE MINUTES April 21, 2015 Committee Members Present: Les Thomas, Chair, Dana Ralph, and Bill Boyce. The meeting was called to order by L. Thomas at 4:02 p.m. 1. CHANGE TO AGENDA. Item eight, Finance Director's Report, was added to the agenda. 2. APPROVAL OF THE CHECK SUMMARY REPORT DATED 3/16/2015 THROUGH 3/31/2015 B. Boyce moved to approve the check summary report dated 3/16/2015 through 3/31/2015. D. Ralph seconded the motion, which passed 3-0. 3. APPROVAL OF MINUTES DATED APRIL 7, 2015. D. Ralph moved to approve the Operations Committee minutes dated April 7, 2015. B. Boyce seconded the motion, which passed 3-0. 4. BANK SERVICES CONTRACT. Finance Director Aaron BeMiller updated Committee members about the banking services request for proposal that was advertised earlier this year. Four responses were received, which were all excellent. The evaluation format consisted of four members from the Finance Department, one member from Information Technology, and one member from Human Resources to review the four responses. Upon completion of the evaluation, Mr. BeMiller is making a recommendation to continue services with the City's existing bank, U.S. Bank. The important factors that led to the final decision are: significant annual banking services savings from the contract will be approximately $60,000 per year based on current activity; a generous annual earning credit bonus in which the City would receive $5,000 per year that can be used to offset banking fees and expenses; a generous earnings credit which will be .45 percent that can be used towards the cost of banking; no transition costs would be incurred; there would be no disruption in banking services, and; the City and U.S. Bank can continue to maintain a long-term relationship. B. Boyce moved to recommend Council to authorize the Mayor to sign the contract with U.S. Bank for the City's primary banking services subject to final terms and conditions acceptable to the Finance Director and City Attorney. D. Ralph seconded the motion, which passed 3-0. S. MFD FLEET MAINTENANCE CONTRACT EXTENSION. Multimedia Manager Dea Drake asked to extend the maintenance agreement to Preferred Copiers for the City's copier fleet of Ricoh Multifunction Copier/Printer Devices until December 31, 2015. Preferred Copiers has been the maintenance company for the past Operations Committee Minutes April 21, 2015 Page: 2 18 months and their contract will expire May 2015. The company has and continues to provide excellent service. The intent is to replace the copier fleet in the next six months. There will be a slight increase reflective to the cost of living and the increased cost of maintaining the older machines. It was noted that the IT Operations Budget allocations approved as a part of the 2015-2016 biennial budget process are earmarked for this expenditure. D. Ralph moved to recommend Council to authorize the Mayor sign an Extension of the Goods and Services Agreement with Preferred Copier Systems in an amount not to exceed $100,000 through December 31, 2015 for maintenance of the city fleet of Ricoh Multifunction Copier/Printer Devices subject to terms and conditions acceptable to the City Attorney and Information Technology Director. B. Boyce seconded the motion, which passed 3-0. 6. FINANCE DIRECTOR'S REPORT Ending the meeting on an upbeat note, Finance Director Aaron BeMiller reported that Moody's Investors Service has significantly upgraded the City's rating three spots on their table to an A2 from a Baal. This outstanding news came on the heels of Standard and Poor's upgrade. The upgrade to A2 is based upon the rapid and significant improvement in the City's financial profile. The City's available liquidity, reserves, and operating flexibility are notably stronger now than they were in recent years. New revenues have been raised; the City's contingent debt obligation has been incorporated as an ongoing expenditure and is being paid in isolation from the General Fund; certain deficit fund balances will be eliminated by surplus cash flows in fiscal year 2016, and all inter-fund indebtedness is on course to be retired by fiscal year 2022. The upgrade acknowledges that previously identified credit risks have been greatly reduced as a result of recent revenue increases and budgeting decisions to strengthen the balance sheet on an accelerated basis, and that these efforts have already yielded improved financial metrics and will likely continue to do so. Committee Chair Thomas congratulated Mayor Cooke, former interim Chief Administrative Officer (CAO) Tom Brubaker, current CAO Derek Matheson, and Mr. BeMiller for making really good choices for this positive change. The meeting was adjourned at 4:15 p.m. by L. Thomas. Jennifer Hays Operations Committee Secretary