HomeMy WebLinkAboutCity Council Committees - Operations Committee - 01/16/2018 (2)Operations Committee
Minutes
Approved February 6, 2018
Page 1 of 3
Date: January 16, 2018
Time: 4:00 p.m.
Place: Chambers East
Attending: Bill Boyce, Dennis Higgins, and Les Thomas, Chair
Agenda:
1. Call to Order.
2. Roll Call.
3. Changes to the Agenda.
There were no changes to the agenda.
4. Approval of Check Summary Reports dated 11/16/17 thru 11/30/17,
12/01/17 thru 12/15/17, and 12/16/17 thru 12/31/17.
B. Boyce moved to approve the check summary report dated 11/16/17 thru
11/30/17, 12/01/17 thru 12/15/17, and 12/16/17 thru 12/31/17. D.
Higgins seconded the motion, which passed 3-0.
5. Approval of Meeting Minutes dated December 5, 2017.
D. Higgins moved to approve the Operations Committee meeting minutes
dated December 5, 2017. B. Boyce seconded the motion, which passed 3-0.
6. Third Lease Amendment – City and Valley Communications –
Cambridge Site - Recommend.
City Attorney Tom Brubaker made a request to move forward a third lease
amendment between the City’s water utility and Valley Communications Center
(Valley Com) for a structure and tower for radio communications, the ground
space is located at the Cambridge tank site. The initial lease was entered into
on November 22, 1993, and amended on January 8, 2010 and December 14,
2016. This third amendment will extend the lease term through December 31,
2019, and will allow the term to automatically extend on a month-to-month
basis, terminable by either party upon thirty days’ notice.
The lease allows Valley Com to assign or sublet all or part of the leasehold
premises to King County’s Puget Sound Emergency Radio Network (PSERN)
project. The County will need to use some of Valley Com’s radio
communications facilities to complete this important next-generation
emergency radio system. Valley Com will be in charge of the details of any
sublease or assignment to King County, then King County will work directly
with the City to negotiate a new lease.
Operations Committee
Minutes
Approved February 6, 2018
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B. Boyce moved to recommend Council authorize the Mayor to sign the third
lease amendment between the city of Kent and Valley Communications Center
for the Cambridge tank site subject to final contract terms and conditions
acceptable to the city attorney and public works director. D. Higgins seconded
the motion, which passed 3-0.
7. 2018 Insurance Program – Information Only.
Risk Manager Chris Hills updated committee members on the City’s 2018
insurance program. Highlights from the conversation are:
Liability – For 2017 the City’s Self-Insured Retention (SIR) increased to
$500,000 per loss. The City’s losses developed adversely during 2017. Three
lawsuits were settled during the year, all of which included payments by the
reinsurer in addition to the City’s payment of the full $250,000 SIR.
Considering these loss payments, premiums to remain at the $250,000 SIR
increased significantly. Evaluation of losses in the $250,000 to $500,000
layer combined with discussions with Finance suggested that moving to a
$500,000 SIR better fits the City’s risk profile and allows coverage to step in
where most appropriate, while providing better cash flow due to lower
premium.
Worker Compensation – For 2018, our Excess Worker Comp premium
remains the same as 2017.
Cyber Risk – This was a new coverage effective February 1, 2017. This
coverage provides compensation as well as recovery expenses in the event of
a serious Cyber incident, network extortion or ransomware loss. Premium
remains the same as 2017 while coverage limits increase to $3 million.
All programs (Liability, Worker Compensation and Cyber Risk) remain within
budgets projected during the 2017-2018 Budget process.
8. 4th Quarter Procurement Report – Information Only.
Chief Administrative Officer Derek Matheson reported on the third quarter
procurement report. There were no significant highlights to report.
9. Director’s Report – Information Only.
Mr. BeMiller reported out on two items, they are:
Debt Management Policy Resolution: at the end of 2017 staff issued two
interfund loans:
1. an “overnight loan” in the amount of $500,000 to provide general
fund cash to the Housing and Community Development (HCD)
fund in order to close the HCD fund books in a positive cash
Operations Committee
Minutes
Approved February 6, 2018
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position. The loan was taken out December 31, 2017 and
returned January 2, 2018. Mayor Cooke provided the Golf fund
with the ongoing $4.2 million that came from the Insurance fund.
The hope is that the golf fund will only need about half that
amount next year with following years decreasing even more
and/or going away completely.
2. Crossover Refunding Ordinance: the bonds closed December 28,
2017 with an aggregate principal amount of $13,180,000. The
bonds were sold in the aggregate at 118 percent with the net
present value debt service savings of the refunded bonds being
5.9 percent, or $871,357. The true interest cost for the bonds
was 2.5 percent. The final maturity date for the bonds is no later
than December 1, 2029.
10. Adjournment.
The meeting was adjourned at 4:24 p.m. by L. Thomas.
J. Hays
Jennifer Hays
Operations Committee Secretary