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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 01/19/2016 (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 4th Ave S, Kent, 98032. For additional information please contact Jennifer Hays at 253-856-5700. 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 1-800-833-6388. Operations Committee Agenda Councilmembers: Dana Ralph – Les Thomas – Bill Boyce, Chair January 19, 2015 4 p.m. Item Description Action Speaker Time Page 1. Call to order Chair Boyce 1 2. Roll Call Chair Boyce 1 3. Changes to the Agenda Chair Boyce 1 4. Approval of Check Summary Report dated 12/16/2015 thru 12/31/2015 YES Chair Boyce 2 5. Approval of Meeting Minutes Dated January 5, 2016 YES Chair Boyce 2 1 6. Assistant City Attorney – Limited Term - Recommend YES Pat Fitzpatrick 10 3 7. Interlocal Agreement with King County Directors Association for Cooperative Purchasing - Recommend YES Pat Fitzpatrick 5 5 8. Reappointments of Barbara Smith and Andrew Hutchison to the Lodging Tax Advisory Committee - Recommend YES Ben Wolters 5 11 9. 2016 Insurance Program NO Chris Hills 5 13 10. Halogen eLearning NO Chris Hills 5 21 11. Quarterly Procurement Report NO Derek Matheson 5 23 This page intentionally left blank OPERATIONS COMMITTEE MINUTES January 5, 2016 Committee Members Present: Les Thomas, Chair, Dana Ralph and Bill Boyce. The meeting was called to order by Les Thomas at 4:00 p.m. 1. ROLL CALL. 2. CHANGE TO AGENDA. There were no changes to the agenda. 3. APPROVAL OF THE CHECK SUMMARY REPORT DATED 11/16/2015 THRU 11/30/2015 AND 12/1/2015 THRU 12/15/2015. B. Boyce moved to approve the check summary report dated 11/16/2015 through 11/30/2015 and 12/1/15 through 12/15/15. D. Ralph seconded the motion, which passed 3-0. 4. APPROVAL OF MINUTES DATED DECEMBER 1, 2015. D. Ralph moved to approve the Operations Committee minutes dated December 1, 2015. B. Boyce seconded the motion, which passed 3-0. 5. RIVERBEND RESTAURANT UPDATE. Parks, Recreation and Community Services Director Jeff Watling provided updates to the tenant recruitment and selection process, changes to the interior and exterior, as well as the type of business that will be a perfect match for the new restaurant at the Riverbend Golf Complex. Updates highlighted by Mr. Watling include:  The Restaurant Group Inc., consultant, performed extensive marketing and outreach for the restaurant’s new tenant recruitment process during this past fall.  The successful joint effort between the consultant and the City were able to narrow the list down to three candidates and is presently working on a lease agreement with the strongest, final candidate, Des Moines’ Scotch and Vine.  Lease agreement negotiations between the City Attorney’s Office and Scotch and Vine will include updated and defined information to: the basis of fees for rent, utilities, and triple net which is often a charge that tenants have; and hours of operation including cart service, especially city expectations during peak season.  Extensive work is being done to the interior to promote an inviting, more modern open floor plan and, through a state grant, updates to the HVAC system.  Exterior changes will include a texture and color change to make it more visible to passing traffic. The target date to open the restaurant is early April 2016. 1 Operations Committee Minutes January 5, 2016 Page: 2 6. NOVEMBER FINANCIAL REPORT. Finance Director Aaron BeMiller informed members that, as in previous months, the City’s finances are in line with what has been discussed in earlier reports. General fund revenues are coming in above budget at about 4.1 percent while general fund expenditures are coming in slightly under budget by about $315,000. That results in a 2015 ending fund balance of about $10,880,000 or about 12.5 percent of expenditures, which puts the City well above the 10 percent goal. The 2015 revenues are on the same path as what previous months have shown. Sales tax is 9 percent higher than the budgeted amount, coming in at $1.5 million, and increases in miscellaneous revenue at about 26 percent higher, which is mostly due to some interest revenues as well as the difference of the school resource officer. 7. DIRECTOR’S REPORT. Mr. BeMiller reported about the overage in the non-departmental expenses of the general fund overview of the previously discussed November report. The overage is not impacting the overall general fund but the estimate includes planned, one-time strategic transfers of available monies out of the general fund. The transfer is in preparation to the much discussed fiscal cliff that is nearing mid-2020. The final topic Mr. BeMiller talked about was members at the last Public Works Committee approved the use of $410,000 of street funds that will be returned from the LID funds. The transferred funds will be a match to grant monies for the Kent Kangley improvements project. The meeting was adjourned at 4:24 p.m. by Les Thomas. J. Hays Jennifer Hays Operations Committee Secretary 2 1 LAW DEPARTMENT Tom Brubaker, City Attorney Phone: 253-856-5770 Fax: 253-856-6770 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 January 19, 2016 To: Operations Committee From: Law Department Subject: Assistant City Attorney – Limited Term - Recommend SUMMARY: Over the past year, Assistant City Attorney, Michele Walker, has taken on a heavier workload of criminal forfeiture proceedings. The forfeiture work occupies approximately 30-40 percent of Ms. Walker’s time, affects the amount of prosecution work she is able to perform, and puts additional stress on the remaining prosecutors trying to cover for her. Recent police department emphasis in certain crime areas has resulted in an increase in the seizure of money and personal assets. Specifically, a recent police action resulted in a sizeable and complicated asset seizure, and we expect that forfeiture litigation will take up a significant portion of Ms. Walker’s time through the first quarter of 2016. Additionally, the prosecution division likely will suffer the loss of an assistant city attorney for an extended period starting sometime in April, 2016, due to anticipated FMLA leave. Over the past few months, the Law Department has benefitted from an attorney, Ifeoma Monu, who is admitted to practice in Washington State and has been volunteering for the prosecution division. This has allowed the prosecution division to have adequate coverage for court and trials that Ms. Walker has not been able to handle. The Law Department asks for council approval to hire Ms. Monu for a limited-term, full-time, benefitted assistant city attorney positon. The term will expire at the end of 2016. BUDGET IMPACT: Approximately $45,000 from the forfeiture fund (which currently has a balance of roughly $500,000). The remaining costs would come from the Law Department’s existing 2016 budget. P:\Civil\Motions-BlueSheets\MotionSheet-Operations - Assistant City Attorney.docx MOTION: Recommend council authorize the hiring of a limited-term, full- time, benefitted assistant city attorney position. 3 This page intentionally left blank 4 1 LAW DEPARTMENT Tom Brubaker, City Attorney Phone: 253-856-5770 Fax: 253-856-6770 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 January 19, 2015 To: Operations Committee From: Tammy White, Assistant City Attorney Subject: Interlocal Agreement with King County Directors Association for Cooperative Purchasing SUMMARY: The city of Kent has contracted with the King County Directors’ Association (“KCDA”) since 1982 to allow the City to benefit from KCDA’s cooperative purchasing and procurement efforts. The 1982 interlocal agreement was signed by the City’s then-administrator, Richard Cushing. Through this interlocal agreement, the city of Kent became a member agency of the KCDA, allowing it to benefit from all contracts awarded by KCDA. It does not appear, however, that this 1982 interlocal agreement was approved by that City Council prior to it having been signed by Mr. Gushing. The Law Department recommends that Council and the Mayor consider authorizing a new interlocal agreement with KCDA to clarify the record, affirm Council’s authorization of the interlocal agreement, update the agreement’s provisions and staff contact information, and ratify all acts consistent with the interlocal agreement and prior to its effective date. If authorized by Council and signed by the Mayor, this interlocal agreement will continue in force until terminated by either the City of the KCDA with 30 days advance written notice. While the interlocal agreement allows the City to benefit from KCDA’s cooperative purchasing efforts as a member agency, it does not require the City to use the bid and contracting process utilized by KCDA. The City may continue to conduct its own bidding and contract award process. However, in some instances, the City may be able to obtain a better price for a purchase, or more beneficial contract terms, given the large purchasing power the KCDA has through its several member agencies. BUDGET IMPACT: None. MOTION: Recommend Council authorize the Mayor to sign an interlocal agreement with the King County Directors’ Association to cooperatively purchase and procure supplies, equipment, and other goods and services, and ratify all acts consistent with the interlocal agreement and prior to its effective date. 5 6 7 8 9 This page intentionally left blank 10 ECONOMIC and COMMUNITY DEVELOPMENT Ben Wolters, Director Phone: 253-856-5454 Fax: 253-856-6454 220 Fourth Avenue S. Kent, WA 98032-5895 January 19, 2016 TO: Operations Committee Members FROM: Ben Wolters, Economic & Community Development Director SUBJECT: Reappointments of Barbara Smith and Andrew Hutchison to the Lodging Tax Advisory Committee MOTION: Recommend Council approve the re-appointments of Barbara Smith and Andrew Hutchison to the Lodging Tax Advisory Committee. SUMMARY: Lodging Tax Advisory Committee consists of eight members who are made up of four representatives from businesses required to collect lodging tax and four representatives who are representing activities funded by lodging tax, and Chaired by a representative from the Operations Committee. The Lodging Tax Advisory Committee is recommending the reappointments of Barbara Smith and Andrew Hutchison each to a new three-year term on the Lodging Tax Advisory Committee. Ms. Smith, the Executive Director of the Kent Downtown Partnership has asked to be considered for reappointment to an additional three-year term. She has been serving on the Lodging Tax Advisory Committee and her term expired December 31, 2015. This position is filled with by representative whose activities are funded by lodging tax. Mr. Hutchison, the General Manager of the Best Western Plaza by the Green has asked to be considered for reappointment to an additional three-year term. He is currently serving on the Lodging Tax Advisory Committee and his term expired December 31, 2015. This position is required to be filled by a representative whose business collects lodging tax. If you have any questions prior to the meeting, please call Ben Wolters, 856-5703. BUDGET IMPACT: None 11 This page intentionally left blank 12 City of Kent Human Resources Department Chris Hills, Interim Director HUMAN RESOURCES Chris Hills, ARM-P, CRM Interim HR Director OFFICE: 253 856-5285 Fax: 253 856-6270 400 West Gowe Kent, WA 98032 January 19, 2016 TO: Operations Committee FROM: Chris Hills, Interim HR Director/Risk Manager SUBJECT: 2016 Insurance Program Review Motion: Information Only SUMMARY: Briefing on the City’s 2016 Insurance Programs. BUDGET IMPACT: All programs (Liability, Worker Compensation and Property) remain within budgets projected during the 2016 Budget process. BACKGROUND: Liability – For 2016 the City’s Self-Insured Retention (SIR) remains at $250,000 per loss. The Liability insurance market has flattened in slight contrast to the softer market we enjoyed a year ago. Premium for 2016 remains the same as 2015. Additional information is provided in the accompanying packet for discussion at the briefing. Worker Compensation – Our current Excess Worker Compensation insurer, Safety National Casualty, has increased the minimum premium to $65,000. We were able to convince them that an interim approach would be preferable for budget softening reasons. The 2015 premium is $60,876 (10.5 percent increase). The 2016 premium will be $65,000. Premium cost is still below the 2003 rate. Additional information is provided in the accompanying packet for discussion at briefing. Property – Renewal is July 1, 2015. The 2014/2015 premiums were 9 percent lower than 2013/2014. Barring severe losses in first and early second quarters of 2015, rates should remain flat. 13 2016 Insurance Program Review and Update 14 Liability •Market continues a bit soft •Outstanding results - next 2 slides 15 Historical Liability Premiums Year Premium % Change 2007 $803,000 12.5% 2008 $910,000 13.3% 2009 $1,057,000 16.2% 2010 $1,164,000 10.1% 2011 $812,375 (changed from WCIA to Alliant) -30.2% 2012 $648,500* -20.2% 2013 $671,981 3.6% 2014 $699,240 4.0% 2015 $663,768 -5.3% 2016 $664,278 0.07% *SIR raised from $100,000 to $250,000 16 Liability Claims History Year Number of Claims Cost 2015 94 $221,547 2014 117 $313,758 2013 72 $526,154 2012 95 $645,381 2011 96 $608,019 2010 84 $148,744 2009 100 $342,597 Cost as of 1/1/2016 17 Excess Worker Comp •Continue with Safety National •Changes in program for all Public Entities •Minimum premium requirement •To $65,000 •We got an interim premium for 2015 18 Excess Worker Comp YEAR RATE WORKER HOURS PREMIUM SIR 2008 .0391 1,821,007 $71,201 $500K Police/Fire $400K All Other 2009 .045 1,788,922 $81,812 $500K Police/Fire $400K All Other 2010 .045 1,820,500 $73,730 $500K Police/Fire $400K All Other 2011 .045 1,529,500 $68,828 $500K Police/Fire $400K All Other 2012 .0298 1,454,000 $43,329 $500K Police $400K All Other 2013 .0341 1,467,000 $50,025 $500K All 2014 .0375 1,468,000 $55,050 $500K All 2015 .04275 1,424,000 $60,876 $500K All 2016 .0456 1,424,000 $64,934 $500K All Increase gets us to minimum premium requirement Rate is still below the 2003 rate 19 Excess Worker Comp Claims History Year Number of Claims Cost 2015 87 $455,881 2014 63 $386,353 2013 63 $517,086 2012 65 $315,462 2011 71 $384,782 2010 86 $858,944 2009 81 $485,299 2008 105 $998,715 2007 103 $857,542 As of 12/31/2015 20 City of Kent Human Resources Department Chris Hills, Interim Director HUMAN RESOURCES Chris Hills, ARM-P, CRM Interim HR Director OFFICE: 253 856-5285 Fax: 253 856-6270 400 West Gowe Kent, WA 98032 January 19, 2016 TO: Operations Committee FROM: Chris Hills, Interim HR Director/Risk Manager SUBJECT: Halogen eLearning Motion: Information Only SUMMARY: Briefing on the City’s purchase of the Halogen eLearning Learning Management System. BUDGET IMPACT: For 2016, cost of system and courses will be $36,140.18 ($18,440 for system and $17,700 for learning content). This cost is well within the budget established for Citywide training for 2016. For 2017, system cost of budget will revert to IT where current system will serve as backup during 2016. Cost of learning content will continue within HR training budget. BACKGROUND: The City’s current Learning Management System (LMS) is outdated and was never capable of functioning in concert with our Payroll/Personnel system. This has always been a roadblock to keeping accurate training records of employees. For 2016 we have purchased a new LMS from Halogen (provider of our recently purchased Performance Management system which continues to be rolled out to departments) called eLearning. This purchase is being made after extensive evaluation of several LMS and cooperation of departments who are key users of our LMS, specifically Police and Public Works. Evaluation included our IT Project Manager/Business Analyst, Annette Pape, who has been very helpful managing this project. The fact that eLearning is an add-on to Halogen Performance system is a key reason for this purchase. Some key elements of functionality eLearning adds for managers, supervisors and staff, includes:  Staff will always be current, since connection to the Payroll/Personnel system already functions for Halogen Performance, 21  Managers and supervisors will develop training/development plans for and with their employees in conjunction with Halogen Performance.  Training plans to ensure compliance with City policies will be established for all new employees,  Some existing instructor-led training will evolve to online training, thereby improving timely delivery,  Departments will have flexibility to customize training plans specific to ongoing education and development in specific fields. This new LMS will roll out to employees over the course of 2016. Training on its use will be provided by HR and in conjunction with training on Halogen Performance. 22 MAYOR’S OFFICE Derek Matheson, Chief Administrative Officer Phone: 253-856-5700 Fax: 253-856-6050 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 TO: Operations Committee DATE: January 19, 2015 FROM: Derek Matheson, Chief Administrative Officer SUBJECT: Quarterly Procurement Report MOTION: Informational only. SUMMARY: The city council adopted a new procurement policy in 2015 that requires staff to provide a quarterly report to council on new procurements over specified dollar amounts and not previously approved by the city council, specifically all contracts/agreements over $25,000 and all leases/agreements that convey an interest in real property. The attached report is for the fourth quarter of 2015. EXHIBITS: Report is attached BUDGET IMPACT: N/A 23 CONTRACTS GREATER THAN $25,000 NOT APPROVED BY COUNCIL QTR CONTRACT NO.CONTRACTOR'S NAME PROJECT NAME TERM CONTRACT AMOUNT APPROVAL AUTHORITY DEPARTMENT Q4 PK15-352 Robinson-Noble Inc Riverbend Golf Complex New Irrigation Well 10/30/2015-10/30/2016 $49,550.00 Mayor Parks Q4 PK15-361 Empirical Inc.Kent Arts DIY 8/21/2015-6/1/2016 $59,000.00 Mayor Parks Q4 PW15-375 HB Jager Co Upgrade Reservoir Flow Control Vault 11/18/2015-12/31/2015 $49,114.88 Mayor Public Works Q4 EC14-339-002 Theresa R. Dusek Amendment No 1 City of Kent Critical Areas Review 11/1/2014-10/31/2016 $40,000.00 Mayor Economic & Community Development Q4 EC15-401 Kent Downtown Partnership (KDP)Kent Downtown Partnership 12/31/2015-12/31/2016 $33,600.00 Mayor Economic & Community Development Q4 PW15-402 Cascade Columbia Distribution Co.Water Treatment Chemicals for 2016 12/22/2015-12/31/2016 $39,764.82 Mayor Public Works Q4 PW15-405 SH&H Valuation LLC S 228th St. UPRR Grade Separation 12/29/2015-12/31/2016 $32,250.00 Mayor Public Works Q4 EC15-412 Bird Busters Meeker Street Underpass Pigeon Control 12/31/2015-12/31/2016 $44,700.00 Mayor Public Works Q4 SH15-413 NCSI Concessions Menu Reader Boards 11/1/2015-2/29/2016 $37,047.24 CAO Showare 24