HomeMy WebLinkAboutCity Council Committees - Operations Committee - 08/02/2016
OPERATIONS COMMITTEE MINUTES
August 2, 2016
Committee Members Present: Les Thomas; Bill Boyce; and Dana Ralph, Chair
The meeting was called to order by Dana Ralph at 4:01 p.m.
1. ROLL CALL.
2. CHANGES TO THE AGENDA.
Because both Committee Chair Ralph and Committee Member Boyce had heard the
Water and Sewer Rates Ordinance at the Public Works Committee on Monday, August 1,
it was decided to remove it from the agenda.
3. APPROVAL OF THE CHECK SUMMARY REPORT DATED 6/16/2016 THRU
6/30/2016 AND 7/1/2016 THRU 7/15/2016.
L. Thomas moved to approve the check summary report dated 6/16/16 through
6/30/16 and 7/1/2016 thru 7/15/2016. D. Ralph seconded the motion, which passed
2-0.
4. APPROVAL OF MINUTES DATED JULY 5, 2016.
L. Thomas moved to approve the Operations Committee minutes dated July 5, 2016. D.
Ralph seconded the motion, which passed 2-0.
5. CONSOLIDATING BUDGET ADJUSTMENT ORDINANCE FOR ADJUSTMENTS
BETWEEN APRIL 1, 2016 AND JUNE 30, 2016 – RECOMMEND.
Finance Deputy Director Barbara Lopez requested to approve the technical gross
budget adjustment ordinance reflecting an overall budget increase of $6,791,110.
Of that amount, adjustments totaling $6,408,110 have been approved by Council or
under the provisions of KCC 3.70 – Public Contracting and Procurement, including:
$2,354,040 to recognize grants awarded for 72nd Avenue, Salmon Recovery and
the Lake Meridian Dock.
$2,519,420 for 72nd Avenue Extension.
$759,970 for the Pine Tree Park settlement.
$591,350 to implement the wage provisions of the KPOA agreement.
The remaining amount not yet approved by Council is an overall increase of $383,000,
including:
$300,000 to establish a budget for initial planning of the light rail stations to be
constructed within Kent.
$83,000 to expand the marketing budget paid from hotel/motel tax, per action
taken by the Lodging Tax Advisory Board.
Operations Committee Minutes
August 2, 2016
Page: 2
These expenditures are funded by grants, existing fund balance, or other new
revenues.
L. Thomas moved to recommend Council approve the consolidating budget
adjustment ordinance for adjustments made between April 1, 2016 and June 30,
2016 reflecting an overall budget increase of $6,791,110 . D. Ralph seconded the
motion, which passed 2-0.
6. MAY FINANCIAL REPORT – INFORMATION ONLY.
Finance Director Aaron BeMiller announced that overall the City is doing just fine and
analysis through May shows both revenue and expenditures ending the year favorable
compared to budget, creating an overall favorable variance amount of nearly $3.4 million.
Current estimated ending fund balance reserves for 2016 calculates to 16.9 percent of
estimated 2016 expenses. The following highlights were reported:
Revenues are estimated to end the year at $2.5 million or 2.9 percent higher than
budgeted. Most of the City’s major revenue sources show favorable variances compared
to budget, including sales tax ($709k), licenses and permits ($306k), and miscellaneous
revenues ($343k). This is offset by unfavorable variances compared to budget for other
taxes ($179k), and fines and forfeitures ($144k). Business and Occupation1 (B&O) taxes
are conservatively estimated to end the year nearly $860,000 over budget, due to
onboarding and collection efforts of the expanded B&O team.
Expenditures for all departments are remaining fairly close to budget.
7. DIRECTOR’S REPORT – INFORMATION ONLY.
Mr. BeMiller and Senior Financial Analyst Joe Bartlemay updated members on two items:
Mr. BeMiller noted that in the May 2016 financial report, page 47, the 2014
beginning fund balance was reduced by $2,026,000 to reflect the prior period
adjustment required to properly record the repayment owed to the Utility Funds;
Mr. Bartlemay discussed the Finance Department’s Accounts Payable use of U.S.
Bank’s vendor payment option called Payment Plus, a free service to the City. City
vendor’s can choose to participate; there are about 70 vendors signed up to date.
8. 2ND QUARTERLY PROCUREMENT REPORT – INFORMATION ONLY.
Chief Administrative Officer (CAO) Derek Matheson highlighted three updates to the
second quarterly procurement report:
As previously requested by Committee Members, quarter one was left on the
report,
three contracts were reported as having Approval Authority by a Department
Director. After review and confirmation it was determined that Mayor Cooke
actually approved these contracts, and
CAO Matheson approved one contract for LED lights and digital menu boards for the
ShoWare Center, the first ShoWare expenditure to appear on this report.
Operations Committee Minutes
August 2, 2016
Page: 3
The meeting was adjourned at 4:22 p.m. by D. Ralph.
J. Hays
Jennifer Hays
Operations Committee Secretary