HomeMy WebLinkAboutCity Council Committees - Operations Committee - 01/17/2017
OPERATIONS COMMITTEE MINUTES
January 17, 2017
Committee Members Present: Les Thomas, and Dana Ralph, Chair; Bill Boyce had an
excused absence.
1. The meeting was called to order by Dana Ralph at 4:01 p.m.
2. ROLL CALL.
Council President Bill Boyce had an excused absence.
3. CHANGES TO THE AGENDA.
There were date changes to the check summary report to reflect approval of summaries
December 1, 2016 through December 31, 2016.
4. APPROVAL OF THE CHECK SUMMARY REPORT DATED 12/01/2016 THRU
12/15/2016 AND CHECK SUMMARY 12/16/2016 THROUGH 12/31/2016.
L. Thomas moved to approve the check summary report dated 12/01/2016 thru
12/15/2016 and check summary 12/16/2016 though 12/31/2016. D. Ralph seconded
the motion, which passed 2-0.
5. APPROVAL OF MINUTES DATED DECEMBER 6, 2016.
L. Thomas moved to approve the Operations Committee minutes dated December 6,
2016. D. Ralph seconded the motion, which passed 2-0.
6. 2017 INSURANCE PROGRAM REVIEW – INFORMATION ONLY.
Risk Manager Chris Hill provided members with an update for the City’s 2017 insurance
programs:
Liability - due to adverse loss development in 2016, the premium for 2017 has
increased six percent in the first layer and will hold through for the second layer.
For 2017, the City’s self-insured retention remains at $250,000 per loss.
Worker compensation - the City’s current Excess Worker Compensation insurer,
Safety National Casualty, has increased the minimum premium to $65,000.
However, after some convincing an interim approach was agreed for budget
softening reasons. Premium costs are still below the 2003 rate.
7. 4TH QUARTER PROCUREMENT REPORT – INFORMATION ONLY.
Chief Administrative Officer Derek Matheson reported on the fourth quarter procurement
report; there were no significant highlights discussed.
8. EMERGENCY MANAGEMENT PERFORMANCE GRANT MOU – INFORMATION
ONLY.
City Auditor Robert Goehring informed members to the previously authorized acceptance
of the federal Emergency Management Performance Grant (EMPG) from the Washington
Military Department in the amount of $70,466 for the period June 1, 2016 through August
Operations Committee Minutes
January 17, 2017
Page: 2
31, 2017. On January 1, 2017, these grants were awarded directly to the City and passed
to the Puget Sound Regional Fire Authority, formerly named Kent Fire Department RFA.
The federal grant requirements were replaced by The Common Rule. While there were no
substantive changes between the former and new federal grant requirements with respect
to the EMPG award, the new requirements resulted in a significant re-write of the terms
and conditions of the memorandum of understanding. These changes included increasing
the dollar threshold for requiring a single audit from $500,000 to $750,000.
9. NOVEMBER FINANCIAL REPORT – INFORMATION ONLY.
Finance Director Aaron BeMiller reported overall the City is in line with what was reported
in October. Analysis through November show both revenues and expenditures ending the
year favorable compared to budget, creating an overall positive variance amount of nearly
$5.7 million. The current estimated ending fund balance reserves for 2016 calculates to
18.6 percent of estimated 2016 expenses.
The following highlights were reported:
Revenues are estimated to end the year at nearly $4.6 million or 5.2 percent higher than
budgeted. Most of the City's major revenue sources show positive variances compared to
budget, including sales tax ($910,000), licenses and permits ($682,000), charges for
services ($615,000), intergovernmental revenue ($529,000) and B&O ($617,000). This is
offset by unfavorable variances compared to budget for other taxes ($165,000) and fines
and forfeitures ($143,000).
Expenditures through September show all departments are remaining fairly close to
budget.
10. DIRECTOR’S REPORT – INFORMATION ONLY
Mr. BeMiller supplied new information to two items, they are:
Financial Policy Review – with all the financial policies the City has in place, it
was asked what would be the best way for the organization to relay the
information. Chair Ralph recommended to bring the policies back to the Committee
as an information only item and then sometime in July it will be presented to full
Council during a workshop.
PFM Asset Management Investment – as of January 17, the City closed on $21
million and the following day closed on another $4 million, doubling its investments
outside the local government investment pool to date.
The meeting was adjourned at 4:29 p.m. by D. Ralph.
J. Hays
Jennifer Hays
Operations Committee Secretary