HomeMy WebLinkAboutCity Council Committees - Operations Committee - 12/06/2016
OPERATIONS COMMITTEE MINUTES
December 6, 2016
Committee Members Present: Bill Boyce, Les Thomas, and Dana Ralph, Chair.
1. The meeting was called to order by Dana Ralph at 4:03 p.m.
2. ROLL CALL.
3. CHANGES TO THE AGENDA.
Chief Administrative Officer Derek Matheson requested Item 12 be removed from
the agenda.
4. APPROVAL OF THE CHECK SUMMARY REPORT DATED 11/01/2016 THRU
11/15/2016.
L. Thomas moved to approve the check summary report dated 11/01/2016 thru
11/15/2016. B. Boyce seconded the motion, which passed 3-0.
5. APPROVAL OF MINUTES DATED NOVEMBER 15, 2016.
B. Boyce moved to approve the Operations Committee minutes dated November 15,
2016. L. Thomas seconded the motion, which passed 3-0.
6. GROUP HEALTH COOPERATIVE 2017 CONTRACT – RECOMMEND.
Human Resources Benefits Manager Becky Fowler discussed the annual renewal of the
Group Health Cooperative of Puget Sound contract for the City’s insured health
maintenance organization (HMO). The 2017 contract reflects a 4.45 percent increase in
health care premiums charged by Group Health Cooperative and is budgeted in the health
and wellness fund.
L. Thomas moved to recommend Council authorize the Mayor to approve the 2017 Group
Health Cooperative contract for the City’s insured HMO plan subject to approval of final
terms and conditions by the City Attorney. B. Boyce seconded the motion, which passed
3-0.
7. LIFEWISE ASSURANCE COMPANY STOP LOSS AMENDMENT – RECOMMEND.
Ms. Fowler noted that the City’s third party administrator for the City’s individual and
aggregate stop loss coverage is LifeWise Assurance Company. In October, LifeWise
provided a preliminary renewal increase of 30 percent for 2017, so the City went out for a
competitive bid. Following the bid process and the City’s appeal of LifeWise’s preliminary
decision, LifeWise reduced their preliminary renewal amount to 19 percent for 2017 with a
50 percent rate-cap.
B. Boyce moved to recommend Council authorize the Mayor to approve the 2017 LifeWise
Assurance Company amendment for stop loss coverage for the City’s self -insured plans
subject to approval of final terms and conditions by the City Attorney. L. Thomas
seconded the motion, which passed 3-0.
Operations Committee Minutes
December 6, 2016
Page: 2
8. CONTRACT WITH CANON FOR MULTI-FUNCTIONING DEVICES –RECOMMEND.
Information Technology Technical Services Manager James Endicott advised that the City
has 58 multi-function devices (copiers & MFDs) that are at end-of-life and are on a
month-to-month maintenance and support contract. IT issued a request for proposal and
received seven vendor submissions. Upon review of the RFP’s, IT staff recommend Canon
Solutions America, Inc., as the preferred vendor, a 36 month lease in the amount of
$378,298.
L. Thomas moved to recommend Council authorize the Mayor to sign the Multi- Function
Device (Copier) purchase order contract addendum, subject to final terms and conditions
acceptable to the IT Director and City Attorney. B. Boyce seconded the motion, which
passed 3-0.
9. RECREATION AND CONSERVATION OFFICE GRANT AGREEMENT FOR THE LAKE
MERIDIAN FLOATING DOCK REPLACEMENT PROJECT - RECOMMEND.
Park Planning and Development Manager Hope Gibson explained that in May 2014,
Council adopted Resolutions 1887 and 1888 authorizing staff to submit two grant
applications to the Recreation and Conservation Office (RCO) through the Washington
Wildlife and Recreation Program (WWRP) and the Land and Water Conservation Fund
(LWCF). The grants are for assistance to help finance costs of the fishing and swimming
dock replacement at Lake Meridian. In January of this year, the City was awarded a
$500,000 grant from WWRP and since that time, RCO has awarded an additional
$500,000 LWCF grant and asked that the original contract be terminated and both grants
be placed under one contract in the amount of $1,000.000.
L. Thomas moved to recommend Council authorize the Mayor to sign the grant
agreement with the Recreation and Conservation Office for $1,000,000.00 to fund the
replacement of the Lake Meridian Floating dock, subject to final terms and conditions
acceptable to the Parks Director and the City Attorney. B. Boyce seconded the motion,
which passed 3-0.
10. EMERGENCY MANAGEMENT PERFORMANCE GRANT – RECOMMEND.
John Madson, Division Chief of the Kent Office of Emergency Management, was pleased to
notify Council that the Kent OEM applied for and received a grant in the amount of
$70,466 from the Washington Military Department/Emergency Management Division and
the U.S. Department of Homeland Security. This grant will be used to assist with
enhancement, sustainment and improvement of state, local and tribal emergency
management programs.
B. Boyce moved to recommend council authorize the Mayor to accept the Emergency
Management Performance Grant from the Washington Military Department/Emergency
Management Division and the U.S. Department of Homeland Security, in the amount of
$70,466, subject to final terms and conditions acceptable to the Chief Administrative
Officer and City Attorney. L. Thomas seconded the motion, which passed 3-0.
11. INTERAGENCY AGREEMENT FOR FUNDING OF DUI COURT – RECOMMEND.
Chief Prosecuting Attorney Tamie Perdue made a request for the City to enter into an
interagency agreement with the Washington Traffic Safety Commission for grant funding
Operations Committee Minutes
December 6, 2016
Page: 3
of the DUI court at the Kent Municipal Court. Grant funds will be used to cover startup
costs of the DUI court and will reimburse Kent Municipal Court, city prosecutors, public
defenders and probation officers’ expenses. The grant is not to exceed $58,989.
L. Thomas moved to recommend Council authorize the Mayor to sign an interagency
agreement, also to be signed by the presiding Judge, between the Washington Traffic
Safety Commission and Kent Municip al Court, subject to final contract terms and
conditions acceptable to the City Attorney and Kent Municipal Court. B. Boyce seconded
the motion, which passed 3-0.
12. RECOMMEND THE CITY COUNCIL AUTHORIZE THE MAYOR TO SIGN THE 2017
CONSULTANT SERVICES AGREEMENT WITH KENT DOWNTOWN PARTNERSHIP
FOR 2017, NOT TO EXCEED $33,600.
13. FOURTH QUARTER SUPPLEMENTAL BUDGET ADJUSTMENT ORDINANCE –
RECOMMEND.
Finance Deputy Director Barbara Lopez reviewed adjustments totaling $1,263,400 that
represent the following grant awards that have been approved by Council:
$689,080 DOT grant to support the Regional Trail Connector project,
$573,000 highway safety improvement grant for improvements at the 108th
Avenue and 208th Street intersection,
$1,320 WAPTA grant in support of police activities.
The remaining amount of $4,826,129 is not yet approved by Council. Highlights
include:
$1,700,000 for additional B&O revenues in excess of the adopted budget,
$2,175,000 to cover expected costs in the Sewerage Fund ($1.8m), Golf Fund
($75k), and Health and Wellness Fund ($300k),
$773,896 to budget various grants and contributions received during the course
of the year for Parks and Facilities capital projects. Taken individually, each is
under the threshold established in KCC 3.70 – Public Contracting and
Procurement,
$142,032 to reflect the actual amount of CDBG funding awarded.
B. Boyce moved to recommend Council adopt the consolidating budget adjustment
ordinance for adjustments made between October 1, 2016 and November 30, 2016,
reflecting an overall budget increase of $6,089,529. L. Thomas seconded the motion,
which passed 3-0.
14. PERMIT FEE RESOLUTION – RECOMMEND.
Economic and Community Development (ECD) Planning Manager Matt Gilbert requested
approval to adjust permitting fees to compensate the city for cost recovery (100 percent)
of permit applications, management of the permit and issuance process.
Mr. Boyce inquired as to what, if any, communication/outreach has been made with
builders in the area. If communications have not been made, Mr. Boyce requested that
outreach be made to this community with the changes in the fee schedule.
Operations Committee Minutes
December 6, 2016
Page: 4
Chair Ralph asked what the plan is for increased services for those filing permits once the
fees are increased. Mr. Gilbert responded that one new position is proposed and that more
filings can be completed online that will expedite the process.
Mr. Matheson noted that Kent taxpayers have been subsidizing the permit fee process and
that this increase more fairly places costs on the filer.
Chair Ralph asked that staff track improvements in the process after the increase in fees
takes affect and Mr. Thomas felt it important to check in with the Master Builders
Association as to how the city is doing related to permits.
L. Thomas moved to recommend Council adopt a resolution to repeal Resolution No.
1902 and replace with a revised fee structure to provide for one hundred percent cost
reimbursement for city costs to administer permits and other applications. B. Boyce
seconded the motion, which passed 3-0.
15. COMPREHENSIVE PLAN AMENDMENT 2017 – 2022 SCHOOL DISTRICT CAPITAL
FACILITIES PLANS ORDINANCE – RECOMMEND.
ECD Long Range Planning Manager Charlene Anderson explained that City Code
authorizes school impact fees on behalf of any school district that provides to the city a
capital facilities plan; the plan is adopted by reference as part of the Capital Facilities
Element of the Kent Comprehensive Plan. Kent, Federal Way, Auburn and Highline School
Districts submitted the annual update to their capital facilities plans and on October 18,
2016, the city council held a public hearing on the plans and updated school impact fees.
Any council action on the comprehensive plan amendment pertaining to the school district
capital facilities plans and associated impact fees is taken concurrently with adoption of
the budget.
B. Boyce moved to recommend to the city council adoption of two ordinances updating
the Capital Facilities Element of the Kent Comprehensive Plan and Chapter 12.13 Kent
City Code to incorporate the 2016/17 - 2021/22 Capital Facilities Plans of the Kent,
Federal Way, Auburn and Highline School Districts with updated School Impact Fees.
Passage of these ordinances should only occur once the city c ouncil passes a budget. L.
Thomas seconded the motion, which passed 3-0.
16. COMPREHENSIVE PLAN AMENDMENT 2017 – 2022 CAPITAL IMPROVEMENT
PLAN ORDINANCE – RECOMMEND.
Finance Director Aaron BeMiller noted that the 2017-2022 Capital Improvement Plan
identifies a six-year plan for capital improvement projects, including costs and revenue
sources. Per procedures established in KCC 12.02, the Capital Facilities Element of the
Comprehensive Plan is amended concurrently with the adoption or amendment of the
City’s budget to reflect the updated 2017-2022 Capital Improvement Plan. This process
assures that the comprehensive plan remains relevant and up-to-date.
L. Thomas moved to recommend Council adopt the ordinance amending the Capital
Facilities Element of the Kent Comprehensive Plan to reflect the 2017 -2022 Capital
Improvement Plan. B. Boyce seconded the motion, which passed 3-0.
Operations Committee Minutes
December 6, 2016
Page: 5
17. BUDGET 2017-2018 ORDINANCE – RECOMMEND.
Finance Director Aaron BeMiller brings forward the 2017-2018 Budget Adoption Ordinance
– total gross expenditure budget for 2017 is $291,264,730 and 2018 is $290,089,110.
Mr. BeMiller requests that this ordinance be moved on to the full city council for adoption.
Chair Ralph noted that some questions still remain related to the budget, but will vote this
ordinance out of committee on to full City Council for discussion.
Mr. Thomas noted that he will vote “no” as there are areas of concern in the budget, but
will welcome discussion at the full city council meeting.
B. Boyce moved to recommend council adopt the 2017-2018 Budget Ordinance. D. Ralph
seconded the motion, which passed 2-1.
18. PROPERTY TAX SUBSTANTIAL NEED ORDINANCE – RECOMMEND.
Mr. BeMiller explained that per RCW, the City can levy a one percent increase over the
previous years’ levy as long as the implicit price deflator is more than one percent. For the
2017 tax roll, the implicit price deflator is less than one percent requiring a substantial
needs ordinance for the City to levy a 1 percent increase.
L. Thomas moved to recommend Council adopt the property tax substantial need
ordinance for the 2017 Budget. B. Boyce seconded the motion, which passed 3-0.
19. PROPERTY TAX LEVY ORDINANCE – RECOMMEND
Mr. BeMiller noted that this ordinance levies a property tax increase of 9.8 percent, which
includes an increase of 1 percent on property, new construction, adjustments over the
prior year, and use of $2 million of banked capacity. The tax is for the City’s 2017 budget,
to be applied to the general fund for the purpose of paying the general expenses of
municipal government, with the $2 million of banked capacity to be used for Parks capital
and major maintenance.
Mr. Boyce noted that he will vote to move this on to the full City Council for discussion,
but that he is not a fan of a property tax increase.
B. Boyce moved to recommend Council adopt the property tax levy ordinance for the
2017 budget. L. Thomas seconded the motion, which passed 3-0.
20. OCTOBER FINANCIAL REPORT – INFORMATION ONLY
Mr. BeMiller reported on the October financials showing estimated actual revenue was $93
million and estimated actual expenditures were $90.2 million.
The Fund balance is 16.9 percent of expenses and the increase in fund balance went from
10 percent to 16 percent.
Mr. Thomas prefers going from 10 percent to 12 percent, but felt 16 percent is high.
Operations Committee Minutes
December 6, 2016
Page: 6
Chair Ralph felt a discussion needs to occur among the City Council on what percentage
should be settled on for fund balance.
Mr. BeMiller then distributed a comparison of a 5-year Fund Balance history of the General
Fund:
2011 2012 2013 2014 2015 2016 (Est.)
$1.3M $3.6M $6.1M $7.7M $11.7M $14.5M
1.9% 5.2% 8.0% 8.9% 13.1% 16.1%
Chair Ralph did note that the percentage increase in the General Fund is due to hard work
and diligence on the city council’s part in following their own rules financially to increase
this fund percentage over time. She also thanked Finance staff for clear reporting
documents and thanked Derek Matheson, CAO, and Mayor Cooke for an improved
financial outlook – revenue is up and expenditures are down.
The meeting was adjourned at 5:10 p.m. by D. Ralph.
P. Briggs
Patrick Briggs
Executive Assistant