HomeMy WebLinkAboutCity Council Committees - Operations Committee - 06/21/2016
OPERATIONS COMMITTEE MINUTES
June 21, 2016
Committee Members Present: Les Thomas; Bill Boyce; and Dana Ralph, Chair
The meeting was called to order by Dana Ralph at 4:00 p.m.
1. ROLL CALL.
2. CHANGES TO THE AGENDA.
There were no changes to the agenda.
3. APPROVAL OF THE CHECK SUMMARY REPORT DATED 5/16/2016 THRU
5/31/2016.
L. Thomas moved to approve the check summary report dated 5/16/16 through
5/31/16. B. Boyce seconded the motion, which passed 3-0.
4. APPROVAL OF MINUTES DATED JUNE 7, 2016.
B. Boyce moved to approve the Operations Committee minutes dated June 7, 2016. L.
Thomas seconded the motion, which passed 3-0.
5. DRIVING UNDER THE INFLUENCE (DUI) COURT – INFORMATION ONLY.
Chief Prosecuting Attorney Tami Perdue informed members that the Kent Municipal
Court wants to establish a DUI Therapeutic Court, the first municipal DUI Court in
Washington State. The goals of these courts are to reduce recidivism, create safer roads
and save lives from repeat offenders.
It is anticipated the court would target individuals who have been charged with a DUI
related offense and have two or more prior related offenses in their criminal history that
can include negligent and/or reckless driving. These repeat offenders would enter into
DUI Court post-conviction. The court will utilize increased supervision, frequent alcohol
monitoring, and drivers’ license reinstatement plans. Prosecutors and defense attorneys
would modify their traditional adversarial roles to support treatment and supervision
needs of program participants.
Currently, the Washington Traffic Safety Commission (WTSC) has funding available to
the City for training and startup funds. The Kent Municipal Court will receive funding to
send one team to observe a court in Washington and send another team for three-day
training in California by the end of 2016. The estimated cost of the out-of-state training
will be $12,000 to $16,000. WTSC would also assist with startup funds, first year costs
are estimated to be $50,000 to $75,000. Those funds could start as early as October
2016 and be used to pay for increased drug testing, drug and alcohol assessments, and
other costs incurred from increased supervision.
Committee members would like updates of the program as it progresses.
Operations Committee Minutes
June 21, 2016
Page: 2
6. APRIL FINANCIAL REPORT – INFORMATION ONLY.
Finance Director Aaron BeMiller described analysis through April that show both
revenues and expenditures ending the year favorable compared to budget, creating an
overall favorable variance amount of nearly $3.2 million. The current estimated ending
fund balance reserves for 2016 calculates to 16.8 percent of estimated 2016 expenses.
Revenues are estimated to end the year at $2.4 million or 2.8 percent higher than
budgeted. Most of the City’s major revenue sources show favorable variances compared
to budget, including property tax ($656k), sales tax ($466k), licenses and permits
($340k), and miscellaneous revenues ($304k). This is offset by unfavorable variances
compared to budget for other taxes ($179k) and fines and forfeitures ($133k).
Expenditures overview through April shows all departments remaining fairly close to
budget, with no significant variances.
7. 2016 BOND REFUNDING REPORT – INFORMATION ONLY.
Mr. BeMiller provided an updated report of the successful closing of the City’s 2016 Bond
Refunding process. The final delivery, settlement, and closing procedures took place as
scheduled on Wednesday morning, June 15. The City refunded two separate bonds, the
City’s 2008 General Obligation bond and the City of Kent Public Facilities District’s 2008
Sales Tax bond. The savings from this refunding generated nearly $10.7 million over the
life of the bonds.
8. CITY INVESTMENT REPORT – INFORMATION ONLY.
Mr. BeMiller and Senior Financial Advisor Joe Bartlemay discussed there was not a lot of
activity for the 2016 first quarter report. Although there were no new purchases of
investments or maturities, there was an increase to the balance in local government
investment pool which is almost liquid. The average rate of return is 1.6 percent and the
average years to mature are 2.41 years.
9. DIRECTOR’S REPORT – INFORMATION ONLY.
Mr. BeMiller and Finance Deputy Director Barbara Lopez introduced Business and
Occupation Tax/Compliance Auditor Alex McDonald and informed members on current
business license compliance. Starting January 2016, finance Customer Service sent
renewal letters to local businesses. By the end of February there were 922 businesses that
had not responded. That list was given to Mr. McDonald who determined about a third
were locations no longer in business and were removed from the books. Of the remaining,
about 40 percent has paid for their licenses which leave about 200 businesses that have
not responded at all. Next steps include a letter allowing another 15 days to become
compliant, if they do not acquire a license by this deadline then a notice of violation will
be issued which can carry a $500 fine plus the cost of the business license.
Mr. BeMiller finished up with a report on the State Auditor’s Office (SAO) audit for the
2015 financials. The SAO is completing the financial statement audit and are waiting to
hear if there are any audit findings; a letter is expected June 27. Once finished with the
Operations Committee Minutes
June 21, 2016
Page: 3
financial statement the SAO will start with the accountability process. The audit is
expected to end September 2016.
The meeting was adjourned at 4:48 p.m. by D. Ralph.
J. Hays
Jennifer Hays
Operations Committee Secretary