HomeMy WebLinkAboutCity Council Committees - Operations - 01/20/2015 KENT
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OPERATIONS COMMITTEE MINUTES
January 20, 2015
Committee Members Present: Les Thomas, Chair, and Dana Ralph. Bill Boyce excused
The meeting was called to order by L. Thomas at 4:02 p.m.
1. APPROVAL OF THE CHECK SUMMARY REPORT DATED 12/16/2014 THROUGH
12/31/2014.
D. Ralph moved to approve the check summary report dated 12/16/2014 through
12/31/2014. L. Thomas seconded the motion, which passed 2-0.
2. APPROVAL OF MINUTES DATED JANUARY 6, 2015.
D. Ralph moved to approve the Operations Committee minutes dated December 16,
2014. L. Thomas seconded the motion, which passed 2-0.
3. ORDINANCE AMENDING KCC 5.03 "TAXICABS AND VEHICLES FOR-HIRE".
City Attorney T. Brubaker proposed an amendment to an ordinance that regulates
taxicabs. The amendment will allow the same rules to be applied to taxicabs and vehicles
for-hire as they move from jurisdiction to jurisdiction. This ordinance reflects revisions
adopted by King County and has been passed by neighboring municipalities.
D. Ralph moved to recommend Council adopt an ordinance amending Chapter 5.03 of
the Kent City Code, entitled "Taxicabs and Vehicles For-Hire," to update the Kent City
Code in conformity with the King County Code. L. Thomas seconded the motion, which
passed 2-0.
4. STOP LOSS AMENDMENT 6.
Benefits Division Manager B. Fowler discussed an amendment to the City's agreement
with Lifewise Assurance Company, a third party administrator for individual and aggregate
stop loss coverage. After a competitive bid process and revising their preliminary
decision, Lifewise reduced their renewal increases from 12.7% to 2.5%, saving the City
approximately $40,000.
D. Ralph moved to recommend the 2015 LifeWise Assurance Company amendment for
our individual stop loss coverage be placed on the City Council consent calendar for
the February 3, 2015 meeting subject to approval of final terms and conditions by the
City Attorney. L. Thomas seconded the motion which passed 2-0.
S. 2015 INSURANCE PROGRAM REVIEW - INFORMATION ONLY.
Risk Manager C. Hills briefed the committee on the coming year's insurance program.
Liability -The City's Self-Insured Retention (SIR) remains at $250,000 per loss for 2015.
The Liability insurance market has softened the past year and more reinsurers entered the
market, which is to the City's advantage. The premium will decrease by $35,472 (5.1%).
Operations Committee Minutes
January 20, 2015
Page: 2
Worker Compensation — The current Excess Worker Compensation insurer, Safety
National Casualty, has increased the minimum premium to $65,000. The City negotiated
an interim approach that would be preferable for budget reasons. The 2015 premium is
$60,876 (10.5% increase) and the 2016 premium will be $65,000.
Property — Renewal is July 1, 2015. The 2014/2015 premiums were 9% lower than
2013/2014. Barring severe losses in first and early second quarters of 2015, rates are
expected to remain flat.
6. BANKING SERVICES RFP - INFORMATION ONLY
Finance Director A. BeMiller noted to the committee that the written Request for Proposal
(RFP) for the City's banking services has been completed and was advertised in the Kent
Reporter, Seattle Times, and the Daily Journal of Commerce on Friday, January 16.
The City's timeline for this process includes a deadline for submittal of proposals on March
3, 2015 and a preliminary selection of a firm on March 31, 2015. A recommendation to
the Operations Committee is scheduled for Tuesday, April 21, 2015. It will be asked of
the City Council to approve a four-year contract with at least two contract extension
periods of three years each.
7. INVESTMENT COMMITTEE - INFORMATION ONLY
Section 3.02.060 of the City's investment policy requires the creation of an investment
committee to serve in an advisory capacity. The investment committee is comprised of the
finance and public works directors, the Mayor or designee, and an appointed member of
the Operations Committee to serve a two-year term. The term shall run concurrently with
the term of the Council President, except to the extent an interim appointment becomes
necessary. The committee will meet quarterly starting the second quarter of 2015.
S. 2015 REFUNDING - INFORMATION ONLY
The finance department is collaborating with Piper ]affray & Co, the City's financial
advisor, on refunding the City's 2006 General Obligations bonds. The draft schedule
indicates a closing date in early April 2015. The bond ordinance will likely come before
the Operations Committee on March 3 and then before the full Council on March 17.
Inclusion of the 2008 bond in this refunding process is still being determined. Further
analysis and discussion of any arbitrage issues need to be completed prior to staff having
a clear recommendation. For maximum flexibility, the bond ordinance will likely be
included, but without the obligation to refund the 2008 series if the savings reduce prior
to pricing in late March.
9. 2014 SUPPLEMENTAL BUDGET ORDINANCE
Financial Planning Manager B. Lopez requested authorization to approve the technical
gross budget adjustment ordinance reflecting an overall increase of $5,366,674 for budget
adjustments made between October 1, 2014 and December 31, 2014.
Operations Committee Minutes
January 20, 2015
Page: 3
An overall increase of $3,604,938 was previously approved by Council. Included in this
amount is $1,377,391 to allocate technology capital to specific projects, $767,994 to
allocate Traffic Impact Fees (TIF) to SE 256th, and a $317,000 Department of
Transportation (DOT) Highway Safety Improvement Grant.
The remaining amount not yet approved by Council is an overall increase of $1,604,938
and is comprised of $1,500,000 in additional budget authority needed to pay off the $2.7
million debt in the ShoWare Operating Fund, $62,708 for a Target Zero Teams Grant, and
$37,466 for miscellaneous mini grants from 2007.
With the stipulation that the item be brought before the whole City Council on
February 3, 2015, D. Ralph moved to recommend Council approve the consolidating
budget adjustment ordinance for adjustments made between October 1, 2014 and
December 31, 2014 reflecting an overall budget increase of $5,366,674. L. Thomas
seconded the motion, which passed 2-0.
10. NOVEMBER 2014 FINANCIAL PACKET
Using information available through November, the ending fund balance is estimated to
increase by $5.4 million and end the year at $14.6 million. This includes the General Fund
reserves of $10.7 million, or 14.2%, contingency for unanticipated costs of $1.5 million,
$2 million restricted for annexation, and $424,000 in the Strategic Opportunities Fund. It
also includes $2.7 million of the General Fund reserves that has been set aside the pay off
the debt in the ShoWare Operating Fund. When that transaction is completed, the
General Fund reserves are expected to be nearly $8 million, or 10.6%.
Overall revenues are currently coming in nearly $4 million, or 5.2% above budget.
This includes a continuous positive trend in sales tax, averaging a 7.6% increase over
2013 collections. Year-end projection is expected to exceed the budget by $2 million,
which equates to 10.1%. Building permits and plan check fees revenues are exceeding
projections, currently running nearly $1.6 million above budget, or nearly 33%.
As of November, overall expenditures are expected to end the year $2 million below
budget, or 2.6%. However, this does not take into account the $2.7 million transfer to
pay off the debt in the ShoWare Operating Fund. That transaction requires additional
budget authority, which has been included in the final 2014 budget adjustment ordinance
going to City Council on February 3, 2015.
The meeting was adjourned at 4:42 p.m. by L. Thomas.
l
Annalise LaPorte
Operations Committee Secretary