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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 11/06/1996 OPERATIONS COMMITTEE MINUTES NOVEMBER 6, 1996 COMMITTEE MEMBERS PRESENT: Jon Johnson-Committee Chair, Jim Bennett, Leona Orr COUNCIL MEMBERS PRESENT: Connie Epperly STAFF PRESENT: Arthur Martin, Brent McFall, May Miller, Kelli O'Donnell, MEMBERS OF THE PUBLIC: Joel Ing, Dave Trageser The meeting was called to order at 4:38 p.m. by Chairperson Johnson. Agvroval of Vouchers: Committeemember Orr moved to approve the vouchers for October 31, 1996. Committeemember Bennett seconded the motion. All claims for the period ending October 31, 1996 in the amount of$2,274,598.05 were approved for payment by a vote of 3-0. Centennial Center Lease Pohcv Resolution Director of Operations Brent McFall informed the Committee that when the Centennial Center was leased it was noted that there were a number of private leases as well as some vacancies. He explained that when the first lease was brought to the Council for approval a policy was discussed to give guidance and authority to enter into leases. The proposed policy would give administration the authority to enter into leases at the Centennial Center that did not exceed ten years in length inclusive of any options. Anything longer would be required to be brought to Council. Additionally, any lease entered into would be required to be at market rates. Anything below this rate would again have to be brought to Council for approval. This policy would allow the Facilities Manager Charlie Lindsey to enter into leases that met these criteria. McFall recommended that the Committee recommend to Council adoption of a resolution adopting the policy. Committeemember Bennett moved to recommend to Council adoption of the Resolution establishing a policy for leasing of vacant space in the Centennial Center to private tenants. Committeemember Orr seconded the motion which passed 3-0. International Program U12d.ate Governmental Affairs Manager Arthur Martin stated that this report was the annual update on international activities and by coincidence had fallen on the same day as the opening of the Asia Pacific Trade Exchange. He complimented the Council on their foresight in funding the Trade Exchange since its inception. Martin outlined some of the highlights of other international events including the recruiting trip of Mayor White and Council President Houser which had led to the success of the Trade Exchange. He reported that a new sister city had been formed with Norway during the past year and an official delegation to Norway is in the planning stages for next year. Martin stated that three or four other cities have contacted the City of Kent hoping to begin the process of forming a sister city. One of them is in Ireland which has elicited a great interested in the community. Of the four existing sister cities, three have been active over the past year with the exception of Kherson, Ukraine which continues to suffer from governmental unrest, economic unrest, security problems, etc., and is in a holding pattern. He noted that there is a large Ukrainian population in Kent although no leaders have emerged to take forward the relationship. The Yangzhou relationship continues to boom, Martin continued, with 340 visitors to date excluding the Trade Exchange; the bulk of those visitors were from Yangzhou. Delegations have been received from six nations including Korea, China, Japan, Norway, Singapore, and Hong Kong. Martin estimated that $385,000 had been spent in Kent on food, lodging, shopping, and transportation by our international visitors. Arthur noted the other benefit to the city is the number of business relationships that have been entered into. He reported that Flow International has established a facility in China and attended Yangzhou's first trade exposition. Gargoyles and Boeing have been working on agreements along with other businesses OPERATIONS COMMITTEE MINUTES, CONT. NcwembPr h 1 AGh as a direct result of the sister city program. Martin stated that word has just been received that another major business is relocating into Kent specifically because of our distribution system. He concluded that hundreds of citizens are involved in the program and the support groups are increasingly taking on the responsibilities of these exchanges. Committeemember Bennett stated that he had been contacted by Jason Hang, a leader in the Korean- American community, about the possibility of establishing a sister city. Bennett stated that he had been told that there is a process by which a friendship city is started first and asked for an explanation of the difference between a friendship and a sister city. Martin responded that about a year ago Jason had contacted the city with an interest in establishing a sister city with Kang Dang, Seoul, Korea, one of the seven cities that make up Seoul. Arthur stated that he explained to Mr. Hang that it wasn't possible to start out as a sister city because of the amount of financial obligations, etc. and suggested that it should start as a friendship city which does not obligate the city to anything but encouraging trade,visits, exchanges, and agreeing to provide information and cooperation as the first step. After a support group is developed a sister city may be established as part of the sister city program. Martin noted that a friendship agreement has been drafted by Mr. Hang which would basically be an agreement to agree. He added that a group is coming from Kang Dang in November that would like to enter into this agreement. Bennett noted that Ms. Orr has been instrumental in this process and thanked her and Mr. Martin for their work on this program. Authorization to Select LID Underwriter and. Proceed"with Bond. sale Finance Director May Miller reviewed the process that had been gone through to select the LID underwriter with the Committee concluding that Dain Bosworth, Inc. was selected as the number one underwriter with Seafirst selected as number two. Miller recommended that the right be reserved to utilize Seafirst as an extra selling agent. Miller recommended that the Mayor be authorized to sign a three year contract with Dain Bosworth with two one-year extensions. She also asked for authorization to proceed with the LID Bond sale in the amount of$781,685 for LID 345. Joel Ing and Dave Trageser of Dan Bosworh Incorporated introduced themselves to the Committee. Mr. Ing distributed information on Dain Bosworth Incorporated and the proposed bond sale for LID 345. He reviewed the packet with the Committee noting that the fees are only a conservative estimate. May Miller asked to have the contract authorization on the next Consent Calendar along with permission to begin the process with the final interest rate and costs brought back on December 10 with the official ordinances. Bennett moved to recommend to the full Council to authorize the Mayor to sign a three-year underwriter contract, with two one-year extensions, with Dain Bosworth Inc. Also authorize proceeding with Dain Bosworth Inc.'s sale of approximately$781,625 in LID bonds for LID 345. Orr seconded the motion, Johnson asked for a vote with the motion passing 3-0. August/September Financial Report Review May Miller noted that the reports had been distributed with the agenda to allow the Committee time to review them and stated she would be happy to answer any questions. She first asked to review page 11 and 12 of the September report with the Committee on the Sales Tax. She noted the October sales tax was higher than projected although the graph on page 12 shows that the tax for the service area continues to be down$384,000. This is offset by strong contracting and wholesale revenue. May pointed out if it were not for these two strong areas we would be in a shortfall. She added that the amount that will be taken as an exemption at year end is still the big question. May concluded and asked Committeemembers to contact her if they have any questions. Page 2 OPERATIONS COMMITTEE MINUTES, CONT. Novem�Pr h 1004 1997 Budget Review & Recommendation to Council May Miller distributed the 1997 Budget Ordinance noting that some technical adjustments had been made and were outlined. May reviewed the adjustments with the Committee noting that these are all of the technical adjustments necessary to balance the funds. She reviewed the current Budget Analysis and Forecast with the Committee explaining that a modest growth in revenue is projected and expenditures are less than revenue with the majority of the increase in expenditures related to salary costs. She added that about$1 million of the capital fund has been frozen until the exemptions impacts are known. Orr asked what funding was being given to the Asia Pacific Trade Exchange. McFall responded that$25,000 is in the budget for economic development promotion. It hasn't been specifically identified to the trade exchange and ultimately the decision is up to the Council for 1997 if they wish to continue to support it at$25,000. McFall stated that in the past the reserves from the Economic Development Corporation paid for the trade exchange. The EDC is no longer generating that kind of revenue so any future funding comes straight from the general fund. McFall suggested that in the future we may do less with the trade exchange and utilize funds one-on-one with specific delegations visiting for specific business purposes. That will be a policy decision for the Council and funding is available if Council wishes to continue support of the trade exchange. Miller continued that on page 28 and 29 the total staffing increase is 5.3 positions of which only 1/2 is in the general fund. Normally in a budget this size 15 or 17 positions would be added in a growth year. She noted that the graph included shows the position per thousand residents has been reduced from 15 to about 10. Bennett asked what is funded for the Shuttle Bus. May responded that it is funded for 1997 with staff working on future funding from King County. After further discussion,McFall noted that two actions are needed: the adoption of the 1997 Budget and the adoption or the Tax Levy Ordinance. May distributed the draft Tax Levy Ordinance and explained that according to the law only the dollar amount for the general fund and voted debt service needs to be adopted. She noted that we won't know until we get the final assessed valuation from King County what the mils per thousand will be. May reviewed the figures used to estimate the 1997 tax levy ordinance. She noted that the City Attorney developed an ordinance that reserves the right to change it at the next meeting when we get the assessed valuation. McFall emphasized that we adopt the dollar amount of taxes collected. Jon Johnson recommended that the Committee recommend approval of the Tax Levy Ordinance to Council. Orr asked if he wanted separate motions. -Johnson stated that he felt the budget wasn't ready yet since the Council has asked to have staffing levels of administration and elsewhere looked at. Johnson asked if the Committee wanted to address the Mayor's salary today or at a future meeting. Orr moved to recommend adoption of the 1997 Tax Levy Ordinance of$14,489,025 for the general fund and $1,850,707 for the voted debt service fund. Bennett seconded the motion which passed 3-0. Johnson asked if the Committee wished to discuss the Mayor's salary and administration staffing today or set it for a future meeting. Bennett suggested it be set for the next meeting if it would allow it to be settled by the end of the year. After discussion a special meeting was set for Wednesday,November 13, at 4:30 p.m. May asked if there was any information that could be provided. McFall added to feel free to call himself or May at anytime and if possible information requested would be faxed before the meeting. Johnson requested information on the number of recreation coordinators in the city and what their functions are. He also suggested that a comparison of other cities administration staffing, salary and functions be compiled from comparable cities. There being no further business,the meeting was adjourned at 5:40 p.m. Page 3