HomeMy WebLinkAboutCity Council Committees - Operations Committee - 03/17/2015Unless otherwise noted, the Operations Committee meets at 4:00 p.m. on the first and third Tuesday of each
month. Council Chambers East, Kent City Hall, 220 4th Avenue South, Kent, 98032-5895. Dates and times are
subject to change. For information please contact Annalise LaPorte at (253) 856-5705.
Any person requiring a disability accommodation should contact the City Clerk’s Office at (253) 856 -5725 in
advance.
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Operations Committee Agenda
Council Members: Bill Boyce * Dana Ralph * Les Thomas, Chair
March 17, 2015
4:00 p.m.
Item Description Action Speaker Time Page
Call to order
Roll Call
Changes to the Agenda
1. Approval of Check Summary Report dated
2/16/2015 thru 2/28/2015
YES
2. Approval of Minutes dated March 3, 2015 YES 1
3. ePlus – VMWare SRM Enterprise Licenses
Purchase – Authorize
YES M. Carrington 10 5
4. Business and Occupation Tax Ordinance
Adjustment - Recommendation
YES A. BeMiller 10 9
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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.
J. 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%.
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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.
J. 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.
5. 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.
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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.
___________________
Annalise LaPorte
Operations Committee Secretary
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INFORMATION TECHNOLOGY DEPARTMENT
Mike Carrington, Director Information Technology
Phone: 253-856-4607
Fax: 253-856-4700
Address: 220 Fourth Avenue S.
Kent, WA. 98032-5895
DATE: March 17, 2015
TO: Operations Committee
SUBJECT: ePlus – VMWare SRM Enterprise Licenses Purchase - Authorize
MOTION:
Recommend Council approve the Mayor to sign the Agreement For ePlus
Technology, Inc. in the amount of $76,773 for the purchase of 150 VMWare Site
Recovery Manager Enterprise licenses with 1 year Maintenance, subject to terms
and conditions acceptable to the City Attorney and Information Technology
Director.
SUMMARY:
This contract provides the necessary software licensing to replicate the City of Kent’s virtual
production servers (In the Primary Data Center at Station 74) to the backup data center
(City Hall). This functionality provides better business continuity for the City’s primary
application servers.
EXHIBITS: Good and Service Agreement – ePlus Technology, Inc.
ePlus - Quote#21712244
Budget Impact: IT Capital Budget funds are earmarked for this expenditure.
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LAW DEPARTMENT
Tom Brubaker, City Attorney
Phone: 253-856-5770
Fax: 253-856-6770
Address: 220 Fourth Avenue S.
Kent, WA. 98032-5895
DATE: March 17, 2015
TO: Operations Committee
SUBJECT: Ordinance Amending KCC 3.28.130 - Recommend
MOTION: Recommend Council adopt an ordinance that amends the Business and
Occupation tax code by allocating all revenue, after payment of necessary
administrative costs, to the maintenance and improvement of the city’s existing
street system.
SUMMARY: Under existing city code, the Business & Occupation (B&O) tax revenues go
first to necessary administrative expenses, then the next $4.7 million is dedicated
generally to the maintenance and improvement of the city’s street system, and any
revenue remaining after paying those amounts is applied to the capital improvement
fund.
In an effort to provide maximum available funding for the city’s streets, this ordinance
allocates all B&O tax revenue, other than costs to administer the program, to maintain
and preserve city streets. As a result, all monies earned in excess of $4.7million will also
be dedicated for street purposes, rather than be allocated to the capital improvement
fund.
Exhibit: Ordinance
Budget Impact: No impact to the biennial budget projections, but because excess
revenues will be diverted away from the capital improvement fund for street purposes,
this revenue reallocation will likely increase the length of time it takes to eliminate the
existing debt burden carried in the capital improvement fund and have the effect of
delaying the city’s ability to invest in new capital projects.
P:\Civil\Motions-BlueSheets\B&O Tax Motion.docx
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1 Amend KCC 3.28.130
B&O Tax Limitation on Revenue
ORDINANCE NO.
AN ORDINANCE of the city council of the
city of Kent, Washington, amending section
3.28.130 of the Kent City Code, entitled
“Limitation of revenue received,” reallocating the
distribution of Business and Occupation tax
revenue received.
RECITALS
A. In an effort to provide maximum available funding for the
city’s streets, the council has determined to allocate all Business and
Occupation tax revenue, other than costs allocated to administer the
program, to maintain and preserve city streets.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 1. Amendment. Chapter 3.28 of the Kent City Code,
entitled, “Limitation of revenue received,” is hereby amended as follows:
KCC. 3.28.130. Limitation of revenue received. Revenue
received from the tax imposed by this chapter shall first be applied to the
actual cost to staff and operate the business and occupation tax division;
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2 Amend KCC 3.28.130
B&O Tax Limitation on Revenue
including one (1) information technology position dedicated to support that
division, but not to exceed the amount budgeted for that division by the
city council. One hundred (100) percent of the remaining revenue shall be
allocated to the design, construction, maintenance, improvement,
operation, and repair of the city’s transportation infrastructure and
appurtenant improvements including, without limitation, streets, curbs,
gutters, sidewalks, bicycle and pedestrian lanes and paths, street trees,
drainage, lighting, and signalization. up to a total annual allocation of four
million seven hundred thousand dollars ($4,700,000). Any remaining
revenues received shall be applied to the capital improvement fund and
allocated according to the direction of the city council.
SECTION 2. – Severability. If any one or more section, subsection,
or sentence of this ordinance is held to be unconstitutional or invalid, such
decision shall not affect the validity of the remaining portion of this
ordinance and the same shall remain in full force and effect.
SECTION 3. – Corrections by City Clerk or Code Reviser. Upon
approval of the city attorney, the city clerk and the code reviser are
authorized to make necessary corrections to this ordinance, including the
correction of clerical errors; ordinance, section, or subsection numbering;
or references to other local, state or federal laws, codes, rules, or
regulations.
SECTION 4. – Effective Date. This ordinance shall take effect and
be in force thirty (30) days from and after its passage and publication, as
provided by law.
SUZETTE COOKE, MAYOR
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3 Amend KCC 3.28.130
B&O Tax Limitation on Revenue
ATTEST:
Ronald Moore, CITY CLERK
APPROVED AS TO FORM:
TOM BRUBAKER, CITY ATTORNEY
PASSED: day of , 2015.
APPROVED: day of , 2015.
PUBLISHED: day of , 2015.
I hereby certify that this is a true copy of Ordinance No.
passed by the city council of the city of Kent, Washington, and approved
by the Mayor of the city of Kent as hereon indicated.
(SEAL)
RONALD F. MOORE, CITY CLERK
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