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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 09/18/2018 (2) 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, September 18, 2018 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 September 4, 2018 Minutes YES Chair 05 MIN. 5. Approval of Check Summary Report dated 8/16/2018 - 8/31/2018 YES Aaron BeMiller 05 MIN. 6. Write-offs of Uncollectable Accounts YES Aaron BeMiller 05 MIN. 7. Director's Report - Info Only NO Aaron BeMiller 05 MIN. 8. Puget Sound Regional Fire Authority Interlocal Agreement Update - Info Only NO Derek Matheson 15 MIN. 9. Adjournment Chair 01 MIN. Page 1 of 2 Pending Approval Operations Committee CC Ops Regular Meeting Minutes September 4, 2018 Date: September 4, 2018 Time: 4:00 PM Place: Chambers East Attending: Les Thomas, Committee Chair Bill Boyce, Councilmember Dennis Higgins, Councilmember Toni Troutner, Councilmember Agenda: 1. Call to Order 4:00 PM 2. Roll Call Attendee Name Title Status Arrived Les Thomas Committee Chair Excused Bill Boyce Councilmember Present Dennis Higgins Councilmember Present Toni Troutner Councilmember Present 3. Changes to the Agenda None 4. Approval of Minutes dated August 7, 2018 MOTION: Move to approve the Minutes dated August 7, 2018 RESULT: APPROVED [UNANIMOUS] MOVER: Toni Troutner, Councilmember SECONDER: Dennis Higgins, Councilmember AYES: Boyce, Higgins, Troutner EXCUSED: Thomas 5. Approval of Check Summary Reports dated 07/16/2018 - 07/31/2018 & 08/01/2018 - 08/15/2018 MOTION: Move to approve the check summary reports dated 07/16/2018-07/31/2018 & 08/01/2018-08/15/2018 RESULT: APPROVED [UNANIMOUS] MOVER: Dennis Higgins, Councilmember SECONDER: Toni Troutner, Councilmember AYES: Boyce, Higgins, Troutner EXCUSED: Thomas 6. Investment Presentation - Info Only 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 S e p 4 , 2 0 1 8 4 : 0 0 P M ( O P E N S E S S I O N ) Operations Committee CC Ops Regular Meeting Minutes September 4, 2018 Kent, Washington Page 2 of 2 Lavina Brennecke and Joe Bartlemay presented the 2nd quarter investment report and a presentation regarding the City investment policy. PFM, the City's investment advisor, initiated 12 investment trades in the 2nd quarter of 2018. Portfolio allocations for the 2nd quarter were in compliance with the City's investment policy. Interest revenue was $706,522.08 and year-to-date interest revenue is $1,270,397.19, which is more interest revenue than was earned in all of 2017. 7. July Financial Report - Info Only Deputy Finance Director Barbara Lopez presented an overall positive budget variance of $3.5 million. General fund reserves are estimated to end the year at $21.9 million and revenues are estimated to end the year approximately $4.2 million higher than budgeted. Through July all departments are remaining fairly close to budget with an overall budget variance of $-741,000 due to $1.25m in transfers to other funds. The budget will be updated in August to account for those transfers. 8. Director's Report - Info Only Kelly Peterson provided an update on the recent change to LED street lights and related electricity savings. The conversion of approximately 2600 city- owned street lights was partially paid for by a portion of a Department of Energy and Efficiency grant. The project cost was $2.6m. The DOC grant funded $375,000, a rebate from Puget Sound Energy funded $445,000 and an inter-fund loan of $1.8m, to be paid back in less than 10 years, is funding the remainder. Due to some anomalies with billing, all of the data needed to provide a full report regarding cost savings isn't available at this time. Peterson would like to report this data back to Council after the first of the year once all of 2017 has been billed. The expectation, if everything to date holds true, is to have very favorable data. 9. Adjournment The meeting was adjourned at 4:26 by Council President Boyce. 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 S e p 4 , 2 0 1 8 4 : 0 0 P M ( O P E N S E S S I O N ) FINANCE DEPARTMENT Aaron BeMiller, Finance Director 220 Fourth Avenue South Kent, WA 98032 253-856-5264 DATE: September 18, 2018 TO: Operations Committee SUBJECT: Approval of Check Summary Report dated 8/16/2018 - 8/31/2018 MOTION: Move to approve the check summary report dated 8/16/2018 - 8/31/2018 SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services 5 Packet Pg. 4 FINANCE DEPARTMENT Aaron BeMiller, Finance Director 220 Fourth Avenue South Kent, WA 98032 253-856-5264 DATE: September 18, 2018 TO: Operations Committee SUBJECT: Write-offs of Uncollectable Accounts MOTION: Recommend Council authorize the Mayor to write-off uncollectable accounts owed to the City in the amount of $181,686.86, subject to final approval of the Finance Director and City Attorney. SUMMARY: Authorization is requested to write-off $181,686.86 in uncollectable accounts receivable and utility billing receivables. The requested accounts receivable write-off of $107,881.17 represents 9.8% of the receivables balance and the requested utility billing write-off of $73,805.69 represents .96% of the utility receivables balance. The requested write-off also includes $1,352.50 in interest and finance charges. Of the $181,686.86: $9,500 represents unpaid violations and fines; $7,628.61 is for miscellaneous permits, taxes and fees; $28,320.11 is for Parks fees and golf operations tenant debt and $62,432.45 is comprised of miscellaneous Public Works repairs and services. $73,805.69 is Utility Billing accounts in bankruptcy and unfiled utility liens. All write-offs range from 2003 through 2018. Finance has adopted a procedure to write-off all delinquent accounts receivable invoices older than 3 years, not including current year, unless requested by the department. The write-off does not forgive the debt. Accounts may stay in collections if the billing department ensures all backup documents are retained while the accounts remain with the collection agency. BUDGET IMPACT: There are no expected budget impacts as a result of this motion. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services ATTACHMENTS: 1. 2018 Write-Offs Summary (PDF) 6 Packet Pg. 5 Accounts Receivable and Utility Billing Write-offs: Year:Summary:Amount:Services, Fines & Fees: Accounts Receivable Write-offs: 2014 Code Violations & Fines - In Collections 9,500.00 Code Violaitons 2014 Fire Permits & Fees - In Collections 775.49 FPS, FUFC Permits & False Alarm fees 2014 Gambling Taxes - In Collections 3,132.88 Taxes due by prior owner, out of business 2008-2017 Vendor payments - In Collections 3,720.24 Vendor payment errors 2016-2017 Parks/Golf Operations - In Collections 27,622.87 Tenant Rent, Penalties, Disposal fees 2012-2015 Park Programs - Uncollectable 697.24 Miscellaneous Program fees 2012-2013 Public Works - In Collections 14,147.30 Damage Repairs & miscellaneous Services 2010 & 2017 Public Works - Uncollectable 48,285.15 Disputed liability & Attorney's recommendation Total Accounts Receivable Write-offs:107,881.17 Utility Billing Write-offs: 2013 & 2018 Utility Billing Accounts - Uncollectable 2,452.32 Utility Liens not filed timely 2003 to 2016 Utility Billing Accounts - Uncollectable 71,353.37 Multiple bankruptcy accounts Total Utility Billing Write-offs:73,805.69 2018 WRITE-OFFS:$181,686.86 6.a Packet Pg. 6 At t a c h m e n t : 2 0 1 8 W r i t e - O f f s S u m m a r y ( 1 3 9 1 : W r i t e - o f f s o f U n c o l l e c t a b l e A c c o u n t s ) FINANCE DEPARTMENT Aaron BeMiller, Finance Director 220 Fourth Avenue South Kent, WA 98032 253-856-5264 DATE: September 18, 2018 TO: Operations Committee SUBJECT: Director's Report - Info Only SUMMARY: Finance Director Aaron BeMiller will report out financial or operating items. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services 7 Packet Pg. 7 OFFICE OF THE MAYOR Derek Matheson, Chief Administrative Officer 220 Fourth Avenue South Kent, WA 98032 253-856-5710 DATE: September 18, 2018 TO: Operations Committee SUBJECT: Puget Sound Regional Fire Authority Interlocal Agreement Update - Info Only SUMMARY: Chief Administrative Officer Derek Matheson will update council on the City of Kent/Puget Sound Regional Fire Authority Interlocal Agreement. SUPPORTS STRATEGIC PLAN GOAL: Thriving City, Sustainable Services 8 Packet Pg. 8