HomeMy WebLinkAboutCity Council Committees - Operations Committee - 08/15/2017Operations Committee
Minutes
Approved September 5, 2017
Page 1 of 4
Date: August 15, 2017
Time: 4:00 p.m.
Place: Chambers East
Attending: Bill Boyce, Les Thomas and Dana Ralph, 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 7/1/2017 thru 7/15/2017
and 7/16/17 thru 7/31/17.
L. Thomas moved to approve the check summary report dated 7/1/2017 thru
7/15/2017 and 7/16/17 thru 7/31/17. B. Boyce seconded the motion, which
passed 3-0.
5. Approval of Meeting Minutes dated July 18, 2017.
B. Boyce moved to approve the Operations Committee meeting minutes dated
July 18, 2017. L. Thomas seconded the motion, which passed 3-0.
6. JDE Professional Services Contracts - Recommend.
Information Technology Director Mike Carrington and Systems Manager Curt
Ryser made a request to contract the use of Denovo Ventures’ professional
services to upgrade the current 9.1 system to version 9.2 along with on-going
development and day-to-day operational support of the current JDE system.
Denovo has a high-level of knowledge and understanding of the City’s needs
from past JDE upgrade efforts that include versions 8.12 in 2008, 9.0 in 2012,
and 9.1.5 in 2015. Funding for the 9.2 upgrade was previously approved in the
City’s 2016 and 2017 capital budgets to cover the costs.
L. Thomas moved to recommend council authorize the Mayor to sign all
necessary documents with Denovo Ventures LLC that will allow the city to
contract for professional services in support of JD Edwards EnterpriseOne
related projects and operational support subject to approval of the final terms
and conditions by the Information Technology Director and the City Attorney
in an amount not to exceed $160,000 including applicable Washington State
taxes. B. Boyce seconded the motion, which passed 3-0.
Operations Committee
Minutes
Approved September 5, 2017
Page 2 of 4
7. Panther Lake Police Substation - Second Amendment to Lease
Agreement – Recommend.
In Police Chief Ken Thomas’ absence, committee members agreed to move
forward the second amendment to the Panther Lake Police Substation. It was
noted that all Operations committee members heard the information only item
during the August 8th Public Safety committee meeting. Council President
Boyce sat in place of Chair Jim Berrios’ excused absence during the Public
Safety committee.
B. Boyce moved to authorize the Mayor to sign the Second Amendment to
Lease Agreement with PWRP – Kent LLC for a police substation in the Panther
Lake Shopping Center, and ratify all acts consistent with the terms of the
Second Amendment that occurred after the term of the current lease and
prior to the parties’ execution of the Second Amendment. L. Thomas seconded
the motion, which passed 3-0.
8. Consolidating Budget Adjustment Ordinance for Adjustments between
April 1, 2017 and June 30, 2017 - Recommend.
Finance Deputy Director Barbara Lopez asked members to move forward the
second quarter technical gross budget adjustment ordinance reflecting an
overall budget increase of $15,418,350. Of that amount, $11,330,840 was
previously approved by Council for the following items: $4,544,020
Transportation Improvement Board (TIB) grant for 224th - 228th corridor;
$4,350,000 FMSIB grant for the BNSF grade separation project; $250,000 TIB
grant for complete streets project on Meeker Street; $250,080 WRR and
LHWMP recycling grants; $58,990 grant for a new DUI court, and; $22,000
WATPA grant for police equipment. Another $1,855,750 adjustment is a
technical accounting change to move Business and Occupation (B&O) funds
between projects and re-classify those funds as capital or non-capital for
street use.
Adjustments totaling $4,087,510 have not been previously approved by
Council. Of that amount adjustments include: $2,800,000 to budget additional
2017 B&O revenue ($1.4 million records transfer of the funding to the project
and an additional $1.4 million establishes the project budget to complete the
work); $810,700 in liability insurance claims paid over our deductible that
were subsequently reimbursed by our insurance carrier; $275,360 to budget
salary increases for AFSCME, Teamsters and non-represented employees, and;
$201,450 to budget supplies and services for two new divisions in the IT
department, Project Management Office and SI Development.
L. Thomas moved to recommend Council approve the consolidating budget
adjustment ordinance for adjustments made between April 1, 2017 and
June 30, 2017, reflecting an overall budget increase of $15,418,350. B.
Boyce seconded the motion, which passed 3-0.
Operations Committee
Minutes
Approved September 5, 2017
Page 3 of 4
9. 2017 Q2 Financial Status Report – Information Only.
Finance Director Aaron BeMiller supplied information to the second quarter
financial report which is much of the same information that was presented in
the June 2017 Financial report. Highlights from the General Fund six-year
forecast include:
An allowance for three new Police positions and one other General Fund
position each year beginning in 2019,
o Average cost per position $115,000, total cost of $460,000
annually
Sales Tax shift from Capital Resources Fund beginning in 2019
Reduced Street Fund Subsidy from General Fund to $1 million per year
beginning in 2019
Continuance of 2 percent internal utility tax in 2021 ≈ $1.5 million
reallocated to general operations
Use of banked property tax capacity:
o $2.37 million in 2018
o $1.72 million in 2020
o $1.90 million in 2021
Additional $500,000 in revenues for potential marijuana and card rooms
beginning in 2019
Assumes constant revenue growth
Best practice is to report finances quarterly, the City does this monthly. Mr.
BeMiller asked members to consider how they would like to move forward with
receiving information by continuing the current monthly report with presenting
the final year-end report in March/April of the following year and/or move
towards quarterly reports.
10. June 2017 Financial Report – Information Only.
Mr. BeMiller reported an overall positive budget variance of $2.5 million. The
2017 budget reflects an expected use of $2.4 million of fund balance, including
$2 million for Parks capital projects. The budgeted use of fund balance is offset
by the positive budget variance of $2.5 million, creating a net surplus of
$42,000. General Fund Reserves are estimated to end the year at $17.1
million, or 17.9 percent of estimated 2017 expenditures. The following
highlights were reported:
Revenues are estimated to end the year at nearly $1.8 million (2 percent)
higher than budgeted.
Expenditures through June show all departments are remaining fairly close to
budget with an overall favorable budget variance of $643,000 or 0.7 percent.
Operations Committee
Minutes
Approved September 5, 2017
Page 4 of 4
11. Director’s Report – Information Only.
Mr. BeMiller supplied a brief status update to the ongoing financial audit by the
State Auditor’s Office (SAO). The SAO has determined there are no findings
regarding the Public Facilities District (PFD) financials, this completes the PFD
audit. Regarding the City’s Brownfield grant, there is a strong suspicion there
might be two findings: the first concern being the suspension and disbarment
document that requires initials and date that cannot be located, the second
being the grant’s required cost analysis and a difference of opinion in how it’s
being interpreted between city staff and the SAO.
The Finance department is working with the IT department to create a
technology procurement work flow, a check list of sorts, to help mitigate the
process.
12. Adjournment.
The meeting was adjourned at 4:47 p.m. by D. Ralph.
J. Hays
Jennifer Hays
Operations Committee Secretary