HomeMy WebLinkAboutCity Council Committees - Operations - 07/06/2010 1
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OPERATIONS COMMITTEE MINUTES
JULY 6, 2010
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Ui1tr tee Mernb!Prs Pr atnt: Elizabeth Albertson (for Raplee), Jamie Perry,
Les Thomas (Chair).
The meeting was called to order by Thomas at 4:01 p.m.
1. APPROVAL OF MINUTES DATED JUNE 15, 2010
Perry moved to approve the minutes of the June 15, 2010 Operations Committee
meeting'. Thomas seconded the motion (with l lee's concurrence), which passed
2=0.
2. APPROVAL OF VOUCHERS DATED TUNE 15, 2010 & JUNE 30, 2010
Perry moved to approve the vouchers dated June 15, 2010 & June 30, 2010.
Thomas seconded the motion, which passed 2-0.
3. RECOMMEND COUNCIL AUTHORIZE THE MAYOR TO SIGN AN AGREEMENT
WITH ALLIANT INSURANCE SERVICES, INC. TO PROVIDE LIABILITY
INSURANCE BROKERAGE SERVICES FOR AN ANNUAL AMOUNT NOT TO
EXCEED $35,000, SUBJECT TO FINAL TERMS AND CONDITIONS
ACCEPTABLE TO THE RISK MANAGER AND CITY ATTORNEY,
Chris Hills, Risk Manager fo- the City noted that as discussed at the June 15"' operations
Committee hleetlog, Alliant has been selected as the City's Lia6lilty Insurance Broker to assist
the City in development of our ne% Liability Insurance, progra-rrn for, 2011 when Kert leaves
WCIA. Since the June 15th n°reoting, Hills and City Attorney Torn Brubaker have clone tho,ough
the contract and collectively +^r)&Ic, a few changer, all of which have been accepted by AllianL
Alliant has signed the contract and illlts is pleased that the contract carve in under $35k for
the year, Special pro„lent,, if zany, will be done under a separate contract and charged at an
hourly ra e specified in the contract.
Perry moved to recommend council authorize the mayor to sign an agreement with
Alliant Insurance Service, Inc. to provide liability insurance brokerage services for
an annual amount not to exceed $35,000, subject to final terms and conditions
acceptable to the risk manager and city attorney. Thomas seconded the motion,
which passed 2-0.
Ccuncilmemb€�- Albertson (sitting in for Raplea} has Joined the meeting,
4. MOVE TO RECOMMEND THAT COUNCIL AUTHORIZE THE MAYOR TO SIGN A
PURCHASE ORDER FOR $241,169,97 TO THE WASHINGTON STATE
DEPARTMENT OF INFORMATION SERVICES, THE RESELLING, AGENT OF
MICROSOFT, FOR THE 2010 RENEWAL AND TRUE-UP OF THE MICROSOFT
ENTERPRISE SOFTWARE AGREEMENT AND BE PLACED ON THE CONSENT
CALENDAR FOR THE JULY 20, 2010 CITY COUNCIL MEETING.
Patel Dunn, Technical tyrarvice„ Nlanagcr for information "Ic�hnology is rrriuesting approval for
the ate and final annual payment to Microsoft against the MicroscrrL Enterprise SoftwareAgreement. in June or 2DIi the Cay entered into a 3 year Enterprise License Agreement; wiilh
Microsoft, This agrccniic;nt entalled 3 annual payments, totaling an estimated dollar �rnourt of
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Operations Committee Minutes
June 6, 2010
Page: 2
$649,626.53. This year the payment is going to exceed what was initially approved for a total
of approximately $71,000 over the initial price. In June, 2009, as part of our annual "True-Up"
Information Technology's audit of installer[ desktop systems actually in use, an additional 66
licenses were added to the count with Microsoft. This count increased our annual installment
for 2009 ty almost $56,000. This year, though our Installed number of desktops has
decreased below the levels licensed in 2006 and 2DD9, by the terms of the agreement, we are
obligated to relicense 916 desktops. This year, in addition to relicensing our previously
licensed desktop and server products, we are adding additional licenses for database servers
to the agreement. These servers have been added as part of upgrades and new project
implementatiors over the past year. The additional costs of licensing are budgeted within
capital project budgets in the IT Department. While the City has the option to license these
database servers exdusively through other Microsoft licensing plans, the pricing models
presented under the Enterprise Agreement are more attractive than "one-aff" pricing available
through standard channels. Perry questioned whether any of the increased cost was due to
annexation, o,(hlch Dunn responded there was nothing really that could be tied to annexation
and none of the money would come out of the annexation budget, it Is all project based capital
expense.
Albertson moved to recommend that council authorize the mayor to sign a purchase
order for $241,169.97 to the Washington State Department of Information Services,
the reselling agent of Microsoft, for the 2010 renewal and true-up of the Microsoft
Enterprise Software Agreement and be placed on the consent calendar for the July
20, 2010 City Council meeting, Perry seconded the motion, which passed 3-0.
5. MOVE TO RECOMMEND TO APPROVE THE APPOINTMENT OF BETH SYLVES
TO THE LODGING TAX ADVISORY COMMITTEE.
Economic and Community Development h1anager Kurt Hanson noted that the Lodging Tax
Advisory Committee recommends Beth 5ylves be appointed to the Lodging Tax Advisory
Committee, Ms. 5ylves as the Director of Marketing for the ShoWare Center has engaged the
local business community, and has been involved in planning and promoting activities that
generate visitors to Kent w well as the greater Seattle and Southside areas. Beth Sylves will
be filling the open positlous lert by the resignation of Dennis Higglns. This position is to be
011ed by a person In activities funded by lodging tax. 1n the position Ms. Sylves new term is a
3 year term, which would expire July 31, 2012,
Perry moved to recommend to approve the appointment of Beth Sylves to the
Lodging Tax Advisory Committee. Albertson seconded the motion, which passed 3-0.
MOVE TO RECOMMEND TO APPROVE THE APPOINTMENT OF JOHN CASEY TO
THE LODGING TAX ADVISORY COMMITTEE.
Hanson explained that the Lodging Tax Advisory Committee also recommends John Cas�-'y's
appointment to the Committee. Nlr, Casey is a partner at the Curran Late Pirm and involved in
the Kent community. John Casey will be filling the open positions left by the resignation of
Greg Haffner. This position Is to be filled by a person In activities funded by lodging tax. In
the position Mr. Casey's nevi term is a 3 year term, which would expire July 31, 2013,
Albertson moved to recommend to approve the appointment of John Casey to the
Lodging Tax Advisory Committee. Perry seconded the motion, which passed 3-0.
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Operations Committee Minutes
June 6, 2010
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MOVE TO RECOMMEND TO APPROVE THE APPOINTMENT OF (TO BE
DETERMINED) TO THE LODGING TAX ADVISORY COMMITTEE.
Hanson noted that the Lodging Tax Advisory Committee is looking for Councils direction on
the appointment to one open position. The Lodging Tax Committee has been presented with 2
candidates seeking appointment. Both Mr. Kwok and Mr. Knutson are in the hotel business
and are both cualified. David Kwok is the General Manager of the new Hampton Inn and was
also a member of the Auburn Lodging Tax Committee, Brad Knutson is the General Manager
of the Hawthorn Suites. The chosen candidate will be filling one open position left by the
resignation of Vicky Moizer, phis position is to be filled by a business which collects lodging
tax. In the position the candidate will serve a 3 year term, which would expire July 31, 2012.
Hanson made the recommendation that the Committee consider h1r, Kwok; to ,.velcome him
into the City of Kent and to this board. start has worked with Mr. Kwok a lot over the past
year and feels he has much to offer. Albertson noted that in going through both resumes, she
is comfortable in going with the recommendation. Thomas has met Mr, Kwok, feels he is
enthusiastic and very personable, and Indicates he is also willing to accept staff'$
recommendation.
Perry moved to recommend to approve the appointment of David Kwok to the
Lodging Tax Advisory Committee, Albertson seconded the motion, which passed 3-0.
6. APPROVAL TO USE LODGING TAX FUNDS FOR PRUCHASE OF SHOWARE
MARQUEE (INFORMATIONAL ONLY)
Co,nrrrunity and Economic Manager Kurt Hanson joined by City Attorney Tom Brubaker advised
that the Lodging Tax Advisory Comrnittee recommends the use of lodging tax funds be used to
purchase a marquee at ShoWarc Center. The level of funding was d15Cussed at the last
Lodging Tax Advisory Co-rvnittee meeting an June 24, 2010. Unfortunately, we don't know the
specifics yet on hove much the sign will cost. What is going to inform that cost is th.e type of
foundation system used for the marquee itself. That will be dependent on the height and size
of the sign. P+larketinq management at ShoWare feel a sign 9' high x 15-17' in length would
get: the traction need to for ticket sales. Prices fur the sign and foundation range dramatically
from 100k to 200k depending on the type of foundation used. The Lodging Tar Advisory
Committee is willing to condoler use of the funds as soon as they hear back haw much the sign
will cost Thomas (Chair of the Locging Tax Advisory Committee) noted that the Tax Advisory
Board only authe.ri7ed to render an opinion not to take any action, Thomas posed the question
to Brubaker as to where to go from here in an ordinance fashion, Brubaker advised that the
trarquee is a tourism related facility which is a deflnpd term under state law that defines the
uses to which lodging taxes can be applied, so it Is a legitimate use of money. He further
advised the Committee establishes the tax and makes recommendations to the city about how
It should be spent. The city council determines haw It .should be specifically allocated, perry
directed staff to do further research on design and cost, along with a sketch and to bring It
back to Operations Committee in tvao weeks. At that time the Committee will either approve
and send to Council that same night, or if they do not like the design, Brubaker advised they
will then have the option to pull it and put it on other business or pull it all together. It is the
feeling of the lodging Tax Committee a marquee at S110'Nare Center would be a benefit to the
community by listing the comiiig attractions and entertainment performing, Thomas
recornmended that Albertson be Involved in the design process. Chief Administrative Cfficer
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Operations Committee Minutes
June 6, 2D10
Page: 4
John Hodgson advised that he would brief all council members before the next Council
meeting.
7. FINANCIAL BUDGET SUMMARY FOR MAY 2010 (INFORMATIONAL ONLY)
Finance Director Bob Nachlinger provided a brief overview of the May 2l Budget
Summary. He advised t-rat the budget continues on the same track as fast month;
anticipai revenue will be down 2.9 million and expenditures down 5.7 million. Nachlinger
stated we are currently in the process of starting to build the 2011 budget. The four major
factors affecting next year's budget are: the elimination of furlough days for ernployees, the
anticipation of a 10%. increase In health insurance costs, a substantial increase in pension
casts, and the assumption,dust for planning purposes, of a 2% cost of living Increase. That
basically takes the general fund operating budget by department to looking at an increase or
4.1% for each department
The meeting adjourned at 4.45 p.m. by Thomas.
Nancy Cia
Operations Committee Secretary