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HomeMy WebLinkAboutCity Council Committees - Operations - 05/19/1998 OPERATIONS COMMITTEE MINUTES MAY 199 1998 COMMITTEE MEMBERS PRESENT: Judy Woods, Chair, Sandy Amodt, Tim Clark STAFF MEMBERS PRESENT: Tom Brubaker, Lori Flemm, John Hillman, John Hodgson, Dena Laurent, Brent McFall, May Miller, Sue Viseth, Cheryl Viseth The meeting was called to order at 3:35PM. There was one item added to the agenda. Russell Road Ballfield Complex Improvements Approval of Combined Check-Detail Vouchers Dated May 15, 1998 May Miller, Finance Director, presented the vouchers for approval in the amount of$2,155,809.12. Tim Clark made the motion to approve the vouchers dated May 15, 1998. The motion was seconded and carried. Norway Sister City Agreement Dena Laurent, Government Affairs Manager, said the City of Kent and its citizens in 1996 formed a relationship with three communes in Norway. At that time, there was another commune that was interested in joining the relationship, but for political reasons wasn't ready to move forward. In the two years since that time, relationships have formed with the citizens of Gaular, and the community of Gaular has chosen to join in the relationship with the City of Kent if that is accepted. Gaular is about 2,900 in population and is 15 miles from Forde, which is the central community in the area of the three villages with which Kent has formed the relationship. Adding Gaular would be another spoke up from Forde and would round out the communes in that area. There would be no additional expense and no additional impact on the relationship except broadening the hands of friendship Sandy Amodt asked if a commune was like a town. Ms. Laurent said it was a grouping of little villages and several communes form something similar to a county. There are 19 county-type governments or provinces in Norway Sandy Amodt moved to recommend to the full Council authorization for the Mayor to sign a sister city agreement adding the village of Gaular to the Indre Sunnfjord Norway Sister City Relationship The motion was seconded and carried. Russell Road Ballpark Complex Improvements John Hodgson, Parks Director, discussed the request for additional funds for a project on Russell Road. The Russell Road softball complex has been shut down this year to rebuild the whole drainage system and also the irrigation systems. Original estimates of the project last year when the budget was set was about $120,000 per field and that was based on work that the consultant and the architect had done in Tukwila at Fort Dent Park. When the project got underway there were a number of issues that caused the price to go up. All the poplar trees had to be removed because of the type of soil that was being put in and the problem that already existed with the roots. When the trees were torn up, because the poplar trees had a high root system in the ground, it tore up all the wiring that lit the fields and also tore up a lot of the fencing on one of the fields that was intertwined with the root system. None of the water meters met code since the facility is 35 years old and none of the backfield systems met code, and those had to be rebuilt and brought up to code. Also, since the budget was developed 8 to 10 months ago the cost of goods and materials have gone up 20%. The staff has looked at the budget and the projects for the rest of the year, and found savings of about $150,000 that could be put towards this deficit but it's still not sufficient to finish the job. Lori Flemm, Parks Planning/Development Superintendent, discussed some of the things that would not happen if the $150,000 was used for Russell Road. A portion of the money would have been used to delay hiring a couple of positions, but the rest was for projects that were planned for 1998 that would not be done. Russell Road is a project that cannot be stopped. Typically, when there is cost overrun on a project that's been bid out, the remedy is to cut back, but this project will not get done this year if there are cutbacks. This season has already been lost which amounts to $130,000 in net lost revenue when the park is closed That figure was budgeted into the 1998 budget as part of the capital fee, but the desire is to get the park open for next year so it will generate revenue, however more money is needed. Ms. Flemm said the Department had talked to finance and administration and there is a reserve of about$550,000 in the City's capital reserve that is available to transfer from that fund into this project. Tim Clark moved to authorize a budget change in the amount of$447,400, to transfer $152,800 from existing projects and transfer the balance of$294,600 from the CIP Fund balance and amend the Russell Road Ballfield Complex budget in the amount of$447,400 The motion was seconded and carried. Summary Financial Report for March 31, 1998 May Miller provided the Financial Report for March. Through the first quarter the General Fund looks good being a little over budget in revenue and a little under in expenditures. The sales tax is $616,000 more than expected and is due to one-time-only projects. There was $600,000 in accumulative sales tax through April or 15%. Building Permits are up $50,000 through March or 21% over budget. The CIP fund, which also receives sales tax, is in good condition The Real Estate Excise Tax which is part of the CIP remains very strong The golf course operation through March is disappointing It continues to be down and running about 22% under budget. Utility Taxes are the third largest revenue source in the General Fund The Electricity Utility Tax is the largest of the utility taxes with a budget of about $2,500,000 for 1998, which is down slightly 1.2%. It is a seasonal and weather related tax The Telephone Utility tax is the second largest, and because of automation, more phones, more usage and services, is the fastest growing area. That fund is up a bit. The Gas Utility Tax is at$469,000, and is also a seasonal, heat related fund. The Garbage Utility Tax is actually down a bit, perhaps because more people are recycling. The Cable Franchise Fee is a 5% fee and is up. Other utility taxes are up. The Utility Tax rate is 4.8% and of that 3.5% goes to the General Fund, 1%to the Street Fund, and 0.3% to the Youth/Teen Fund. The Garbage Utility rate is 7.8% and 3% of that is taken for the Environmental or Recycling Fund. The meeting was adjourned at 4:05PM.