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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 07/16/2019 Unless otherwise noted, the Operations Committee meets at 4 p.m. on the first and third Tuesday of each month in Kent City Hall, Council Chambers East, 220 Fourth Avenue South, Kent, WA 98032. For additional information please contact Cathie Everett at 253-856-5705, or via email at CEverett@KentWA.gov. Any person requiring a disability accommodation should contact the City Clerk’s Office at 253-856-5725 in advance. For TDD relay service call Washington Telecommunications Relay Service at 7-1-1. Operations Committee Agenda Chair - Les Thomas Bill Boyce– Dennis Higgins Tuesday, July 16, 2019 4:00 p.m. Item Description Action Speaker Time 1. Call to Order Chair 01 MIN. 2. Roll Call Chair 01 MIN. 3. Changes to the Agenda Chair 01 MIN. 4. Approval of July 2, 2019 Minutes YES Chair 05 MIN. 5. Approval of Check Summary Report Dated June 16 through June 30, 2019 YES Chair 05 MIN. 6. Robert Half Technology Consultant Agreement YES IT Director Mike Carrington and PMO Supervisor Brian Rambonga 10 MIN. 7. Consolidating Budget Adjustment Ordinance for Adjustments Between March 1, 2019 and June 30, 2019 YES Interim Finance Director Barbara Lopez 05 MIN. 8. Debit/Credit Card Payment Changes NO Interim Finance Director Barbara Lopez 05 MIN. 9. Adjournment Chair 01 MIN. Page 1 of 2 Pending Approval Operations Committee CC Ops Regular Meeting Minutes July 2, 2019 Date: July 2, 2019 Time: 4:00 p.m. Place: Chambers Attending: Les Thomas, Committee Chair Bill Boyce, Councilmember Dennis Higgins, Councilmember Agenda: 1. Call to Order 4:00 p.m. 2. Roll Call Attendee Name Title Status Arrived Les Thomas Committee Chair Present Bill Boyce Councilmember Present Dennis Higgins Councilmember Excused 3. Changes to the Agenda There were two changes to the agenda. The May Financial Report will be presented by Shane Sorenson and the Human Capital Management Project Budget Update will be presented by Derek Matheson with support from Somen Palit and Natalie Winecka. 4. Approval of Minutes dated June 18, 2019 MOTION: Move to approve the Minutes dated June 18, 2019 RESULT: APPROVED [UNANIMOUS] MOVER: Bill Boyce, Councilmember SECONDER: Les Thomas, Committee Chair AYES: Thomas, Boyce EXCUSED: Higgins 5. Approval of Check Summary Report Dated 6/1/19-6/15/19 MOTION: Move to approve the check summary report dated June 1 through June 15, 2019. RESULT: APPROVED [UNANIMOUS] MOVER: Bill Boyce, Councilmember SECONDER: Les Thomas, Committee Chair AYES: Thomas, Boyce EXCUSED: Higgins 6. May Financial Report 4 Packet Pg. 2 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J u l 2 , 2 0 1 9 4 : 0 0 P M ( O P E N S E S S I O N ) Operations Committee CC Ops Regular Meeting Minutes July 2, 2019 Kent, Washington Page 2 of 2 Shane Sorenson, Senior Finance Analyst presented the May finance report. Expenditures are remaining consistent. As a result we are looking to end the year with about a $25.4 million general fund reserve balance. Mr. Sorenson reported that there was an error in the previous month's report regarding the golf fund. The actual balance is -$1.1 million. The good news is that after the Par 3 sale in 2020 we will be able to bring that fund into the positive. 7. Human Capital Management & Automation (HCMA) Project Budget Chief Administrative Officer Derek Matheson, Interim HR Director Natalie Winecka and Technology Innovation Manager Somen Palit presented a report on the HCMA project budget. IT is leading a project to replace the software that is currently being used for employee benefits, scheduling, timekeeping and payroll. This has been referred to as the partial JDE replacement. JDE will continue being used for financial purposes but we will shift to a new software solution for the HR pieces. The project is expected to be completed by the end of 2020. The estimated budget is $2.15 million which includes $1.38 for software, $250,000 to build integrations between software systems, $320,000 to create two limited term positions to backfill staff in HR and Payroll to continue operations during the new software implementation and $200,000 for contingency. Funding will come from the capital resources fund. About $1.2 million will come from the quarter 4 sales tax mitigation payment and the remainder will come from the fund balance in the capital resources fund. Both the budget and the FTEs will be included on the quarter 2 supplemental budget adjustment which will come before the Operations Committee in two weeks. A final decision on the software selection is expected to be made in August. 8. Adjournment 4:07 p.m. Cathie Everett Committee Secretary 4 Packet Pg. 3 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J u l 2 , 2 0 1 9 4 : 0 0 P M ( O P E N S E S S I O N ) OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: July 16, 2019 TO: Operations Committee SUBJECT: Approval of Check Summary Report Dated June 16 through June 30, 2019 MOTION: Move to approve the check summary report dated June 16 through June 30, 2019. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services 5 Packet Pg. 4 OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: July 16, 2019 TO: Operations Committee SUBJECT: Robert Half Technology Consultant Agreement MOTION: Authorize the Mayor to sign all necessary documents to enter into agreement with Robert Half International Inc., subject to final terms and conditions acceptable to the Information Technology Director and the City Attorney, for a total amount not to exceed $2,499,226.49. SUMMARY: Robert Half International Inc. (RHT) is a staffing and recruitment agency that specializes in placing information technology professionals in project and contract to hire positions. The City’s Information Technology department will leverage contractor work through Robert Half International Inc. and is currently expected to cost no more than $2,499,226.49. through the end of 2020. Defined in this agreement is a “Job Arrangement Letter”, that will confirm the details of assignment of RHT’s assigned individual or contractor. The assigned individual’s name, rate per hour and their functional role will be included within an associated job arrangement letter. Each contractor will be assigned to execute specific project or operational activity helping IT to better serve the technology needs of supported City departments. BUDGET IMPACT: Description Cost Impact 2019 Operating Budget $1,065,936.08 2020 Operating Budget $1,206,088.00 Sub-Total $2,272,024.08 Contingency from 2019 and 2020 Operating Budget $227,202.41 Total $2,499,226.49 SUPPORTS STRATEGIC PLAN GOAL: Innovative Government, Sustainable Services ATTACHMENTS: 1. Exhibit A - Consultant Agreement between City of Kent and Robert Half International Inc (PDF) 6 Packet Pg. 5 6.a Packet Pg. 6 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 7 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 8 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 9 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 10 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 11 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 12 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 13 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 14 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 15 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 16 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 17 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 18 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 19 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 20 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 21 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y 6.a Packet Pg. 22 At t a c h m e n t : E x h i b i t A - C o n s u l t a n t A g r e e m e n t b e t w e e n C i t y o f K e n t a n d R o b e r t H a l f I n t e r n a t i o n a l I n c ( 1 8 9 2 : R o b e r t H a l f T e c h n o l o g y OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: July 16, 2019 TO: Operations Committee SUBJECT: Consolidating Budget Adjustment Ordinance for Adjustments Between March 1, 2019 and June 30, 2019 MOTION: Recommend Council approve the consolidating budget adjustment ordinance for adjustments made between March 1, 2019 and June 30, 2019, reflecting an overall budget increase of $15,871,920. SUMMARY: Authorization is requested to approve the technical gross budget adjustment ordinance reflecting an overall budget increase of $15,871,920. Adjustments totaling $11,285,320 have previously been approved by Council and are summarized as follows: $6,700,000 for Sound Transit Task Order 2, including four (4) term-limited positions: Sound Transit Liaison, Engineer 2, Administration Assistant 2, and Planner. $2,004,400 in grants including King County Conservation Grants for the YMCA/Morrill Meadows project, TIB Complete Streets Grant for Meeker, KC Waterworks Grant, Shoreline Ecology Grant, Washington UTC Grant, and a Phlebotomy Program Grant. See attached schedule for detailed amounts. $1,987,570 in carryforward budgets for Fleet replacement vehicles ($1,598,800), Solid Waste grants ($274,170), and Criminal Justice equipment ($114,600) that were previously authorized in 2018. $458,100 in salary increases per the new KPOA contract. $76,330 for two (2) new term-limited Correction Officers tied to the Federal Way Jail Services Contract. $58,920 of other changes: primarily the completion of Sound Transit Task Order 1. The remaining adjustments totaling $4,586,600 have not been previously approved by Council. Highlights include:  $2,150,000 transfer of funds from the Capital Resource Fund to the HCMA System project plus another $2,150,000 for the use of those funds as follows: 7 Packet Pg. 23 o $1,880,000 for software, system integrations and contingency. o $320,000 for two (2) term-limited positions (HR Analyst, Central Financial Analyst) to backfill Human Resources and Payroll staff.  Two (2) new positions (Paralegal and Judicial Specialist) were added as part of the new Body Worn Cameras program. The 2019 costs for these positions are fully offset by salary and benefit savings derived from other budgeted positions that have not yet been filled. As such, there is no budget impact in 2019.  $140,000 increase to budgeted unemployment claims based on year-to- date costs.  $146,600 in other items including a criminal justice budget correction ($84,620), HR/Finance Director search ($45,000), repayment of an inter- fund loan ($35,000), movement of funds to the 4th & Willis Roundabout project ($20,000), and a decrease in telephone cost allocations of $38,770. See attached schedule for detail. BUDGET IMPACT: These expenditures are funded by grants, existing fund balance, or other new revenues. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services ATTACHMENTS: 1. Budget Adjustment Ordinance Q2 2019 Supp (PDF) 2. Q2 2019 Exhibit A & Budget Detail (PDF) 7 Packet Pg. 24 1 2019-2020 Budget Adjustment March 1, 2019 to June 30, 2019 ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, approving the consolidating budget adjustments made between March 1, 2019 and June 30, 2019, reflecting an overall budget increase of $15,871,920. RECITALS A. Expenditures as classified in the final, adopted budget constitute the city’s appropriations for that year. After adoption, there are a variety of events that will precipitate the need to amend the adopted budget, such as grant awards, bonds issuance, collective bargaining agreements and additional budget requests coming through Council committees. These modifications are periodically consolidated into a supplemental budget adjustment ordinance amending the original adopted budget. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE SECTION 1. – Budget Adjustments. The 2019-2020 biennial budget is amended to include budget fund adjustments from March 1, 2019 to June 30, 2019, as summarized and set forth in Exhibit “A,” which is attached and incorporated into this ordinance. Except as amended by this ordinance, all terms and provisions of the 2019-2020 biennial budget 7.a Packet Pg. 25 At t a c h m e n t : B u d g e t A d j u s t m e n t O r d i n a n c e Q 2 2 0 1 9 S u p p ( 1 8 8 8 : C o n s o l i d a t i n g B u d g e t A d j u s t m e n t O r d i n a n c e f o r A d j u s t m e n t s B e t w e e n M a r c h 2 2019-2020 Budget Adjustment March 1, 2019 to June 30, 2019 Ordinance No. 4296, as amended by Ordinance No. 4324, shall remain unchanged. 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 five days after publication, as provided by law. DANA RALPH, MAYOR Date Approved ATTEST: KIMBERLEY A. KOMOTO, CITY CLERK Date Adopted Date Published APPROVED AS TO FORM: ARTHUR “PAT” FITZPATRICK, CITY ATTORNEY 7.a Packet Pg. 26 At t a c h m e n t : B u d g e t A d j u s t m e n t O r d i n a n c e Q 2 2 0 1 9 S u p p ( 1 8 8 8 : C o n s o l i d a t i n g B u d g e t A d j u s t m e n t O r d i n a n c e f o r A d j u s t m e n t s B e t w e e n M a r c h Fund Title Previously Approved Approval Requested Total Adjustment Ordinance General Fund 558,010 32,170 590,180 Street Fund 20,000 (1,960) 18,040 Capital Resource Fund (120,000) 2,185,000 2,065,000 Criminal Justice Fund 142,540 84,620 227,160 Street Capital Projects 6,950,000 20,000 6,970,000 Parks Capital Projects 1,445,000 750 1,445,750 Technology Capital Projects - 2,150,000 2,150,000 Other Capital Projects 166,800 (10,000) 156,800 Water Operating Fund - (2,190) (2,190) Sewerage Operating Fund - (610) (610) Drainage Operating Fund 250,000 (940) 249,060 Solid Waste Operating Fund 274,170 - 274,170 Golf Operating Budget - (7,570) (7,570) Fleet Services Fund 1,598,800 (170) 1,598,630 Central Services Fund - (970) (970) Facilities Management Fund - (400) (400) Insurance Funds - 140,000 140,000 Utility Clearing Fund - (1,130) (1,130) Total 11,285,320 4,586,600 15,871,920 Exhibit A City of Kent Budget Adjustment Ordinance Adjustments from March 1, 2019 to June 30, 2019 7.b Packet Pg. 27 At t a c h m e n t : Q 2 2 0 1 9 E x h i b i t A & B u d g e t D e t a i l ( 1 8 8 8 : C o n s o l i d a t i n g B u d g e t A d j u s t m e n t O r d i n a n c e f o r A d j u s t m e n t s B e t w e e n M a r c h 1 , 2 0 1 9 Approval Date or Other Fund Previously Approved by Council Not Previously Approved by Council Total Adjustment Ordinance General Fund Sound Transit Task Order 2 Positions 6/18/2019 42,120 42,120 HR/Finance Director Position Search 45,000 45,000 KPOA Salary Increases 1/15/2019 439,560 439,560 Federal Way Jail Services Contract 6/18/2019 76,330 76,330 Correction to telephone cost allocation (12,830) (12,830) Total General Fund 558,010 32,170 590,180 Street Fund Establish Washington UTC Grant KCC 3.70 20,000 20,000 Correction to telephone cost allocation (1,960) (1,960) Total Street Fund 20,000 (1,960) 18,040 Capital Resource Fund Eliminate budgeted transfer to Sound Transit Task Order 1 7/18/2017 (150,000) (150,000) Establish Shoreline Ecology Grant KCC 3.70 30,000 30,000 Transfer of funds to HCMA System project 2,150,000 2,150,000 Repayment of year-end CRF loan from YMCA project 35,000 35,000 Total Capital Resource Fund (120,000) 2,185,000 2,065,000 Criminal Justice Fund Establish Phlebotomy Program Grant KCC 3.70 9,400 9,400 KPOA Salary Increases 1/15/2019 18,540 18,540 Budget corrections (uniforms and equipment)84,620 84,620 Carryover budget 2018 114,600 114,600 Total Criminal Justice Fund 142,540 84,620 227,160 Street Capital Projects 4th & Willis Roundabout (moved from Parks & ECD projects)20,000 20,000 Sound Transit Task Order 2 6/18/2019 6,700,000 6,700,000 Establish TIB Grant for Meeker 4/16/2019 250,000 250,000 Total Street Capital Projects Fund 6,950,000 20,000 6,970,000 Parks Capital Projects True up and close Street Tree Replacement project 750 750 Establish King County Conservation Grants 4/2/2019 1,445,000 1,445,000 Total Parks Capital Projects 1,445,000 750 1,445,750 Technology Capital Projects Establish HCMA Systems project budget 2,150,000 2,150,000 Total Technology Capital Projects - 2,150,000 2,150,000 Other Capital Projects Sound Transit Task Order 1 7/18/2017 166,800 166,800 Movement of budget from Meet Me on Meeker to 4th & Willis (10,000) (10,000) Total Other Capital Projects 166,800 (10,000) 156,800 Water Operating Fund Correction to telephone cost allocation (2,190) (2,190) Total Water Operating Fund - (2,190) (2,190) Sewerage Operating Fund Correction to telephone cost allocation (610) (610) Total Sewerage Operating Fund - (610) (610) Drainage Operating Fund Establish King County Waterworks Grant 12/11/2018 250,000 250,000 Correction to telephone cost allocation (940) (940) Total Drainage Operating Fund 250,000 (940) 249,060 Budget Adjustment Detail for Budget Changes March 1, 2019 to June 30, 2019 7.b Packet Pg. 28 At t a c h m e n t : Q 2 2 0 1 9 E x h i b i t A & B u d g e t D e t a i l ( 1 8 8 8 : C o n s o l i d a t i n g B u d g e t A d j u s t m e n t O r d i n a n c e f o r A d j u s t m e n t s B e t w e e n M a r c h 1 , 2 0 1 9 Approval Date or Other Fund Previously Approved by Council Not Previously Approved by Council Total Adjustment Ordinance Budget Adjustment Detail for Budget Changes March 1, 2019 to June 30, 2019 Solid Waste Operating Fund Carryover budget 2018 274,170 274,170 Total Solid Waste Operating Fund 274,170 - 274,170 Golf Operating Budget Correction to telephone cost allocation (7,570) (7,570) Total Golf Operating projects - (7,570) (7,570) Fleet Services Fund Correction to telephone cost allocation (170) (170) Carryover budget 2018 1,598,800 1,598,800 Total Fleet Services Fund 1,598,800 (170) 1,598,630 Central Services Fund Correction to telephone cost allocation (970) (970) Total Central Services Fund - (970) (970) Facilities Management Fund Correction to telephone cost allocation (400) (400) Total Facilities Management Fund - (400) (400) Insurance Funds Increased Unemployment Claims 140,000 140,000 Total Insurance Funds - 140,000 140,000 Utility Clearing Fund Correction to telephone cost allocation (1,130) (1,130) Total Utility Clearing Fund - (1,130) (1,130) Grand Total All Funds 11,285,320 4,586,600 15,871,920 7.b Packet Pg. 29 At t a c h m e n t : Q 2 2 0 1 9 E x h i b i t A & B u d g e t D e t a i l ( 1 8 8 8 : C o n s o l i d a t i n g B u d g e t A d j u s t m e n t O r d i n a n c e f o r A d j u s t m e n t s B e t w e e n M a r c h 1 , 2 0 1 9 OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: July 16, 2019 TO: Operations Committee SUBJECT: Debit/Credit Card Payment Changes SUMMARY: Over the past few months, Finance has been working with IT to replace the cashiering and credit/debit card payment processing systems used by Customer Service. The switch to iNovah cashiering is expected to be completed later this year. As part of this project, we have looked at how the City handles the fees associated with accepting bank card payments. In 2018, the City of Kent paid $781,000 in merchant bankcard fees for card transactions processed by Customer Service. The fees are driven by the cards brands (Visa, MasterCard, Discover, American Express) and are charged on every card transaction. Currently, these fees are paid out of the General Fund. You may recall hearing about these fees during budget deliberations last year. With the full support of Administration, the project team has worked closely with card processing partners Elavon and Alacriti to mitigate the merchant bankcard fees currently being paid by the City by passing those costs onto the customer for both on premises and web payments. Elavon is a subsidiary of US Bank that provides on-premises chip card readers. Alacriti is an on-line (web) card payment processor. Analysis shows that a 2.65% service fee to the customer for all card payments taken by Customer Service and via the City of Kent Portal will cover the cost of the merchant bankcard fees. We recommended this approach to Administration and were given approval to implement the service fee at the Customer Service location when the new cashiering and card processing systems come on-line later this year. Fees will be re-evaluated annually to ensure the service fee continues to cover the merchant bankcard fees. Staff has developed a communication plan, which includes:  Kent Now video with Mayor Ralph  Information posted on the website and Customer Service counter  Scripts for staff to ensure consistent communication Remote locations, such as Kent Commons, Senior Center and others, will have the service fee implemented later as their new point of sale systems and chip card readers are installed. 8 Packet Pg. 30 SUPPORTS STRATEGIC PLAN GOAL: Innovative Community 8 Packet Pg. 31