Finance and Personnel Committee s1

Finance and Personnel Committee of the Lee’s Summit City Council Minutes Tuesday, February 6, 2007  7:30 a.m. City Hall Conference Room

Councilmembers: Councilmember Joe Spallo, Chair – Present Councilmember James Freeman – Absent Councilmember Ron Williams – Present Councilmember Jim Hallam - Present

Staff: Conrad Lamb – Director of Finance Darlene Pickett – Assistant Finance Director Kari Wolfe – Budget Officer Robert Handley – City Attorney Brian Scott – Asst. City Administrator Mark Stinson – Fleet Manager Tom Lovell – Administrator Parks & Rec Kathy VanGorkom – Superintendent Parks & Rec Ben Calia, Purchasing Manager Bruce Trammell – Police Major Ken Conlee – Police Chief Chuck Owsley – Director Public Works Bob Harnett – Dep. Director Public Works Randy Dickey –Chief Technology Officer John Ohrazda – Airport Manager Mark Shaufler – Director Water Utilities Brent Boice, Assistant Director Water Utilities

Chairman Spallo opened the meeting at 7:30 a.m. Attendance was taken.

Item 1 – Approval of Minutes from December 12, 2006 meeting.

Minutes from December 12, 2006 were approved.

Item 2 – Discussion of Amendment to Downtown Parking Lot Lease Agreement

Ron Cox stated in November 2004, staff presented the Downtown Parking Strategy to the Mayor and City Council. Among the items presented by staff was the expansion of the City's public parking lot on Douglas Street between 2nd and 3rd streets. Based on the direction of the Mayor and City Council, staff entered into negotiations with property owners regarding the use of the vacant property to the south of the existing public parking lot. As a result of those negotiations, in January 2005 the City approved Ordinance No. 5880 approving a Lease Agreement with Mr. and Mrs. Fender a period of eighteen months for $6,000. In July 2006 the City executed an option to extend the current Lease Agreement an additional six months for $2,000. The extension expired on January 7, 2007.

Staff has been negotiating with Mr. and Mrs. Fender for the extension of the Lease Agreement. The Fender's have agreed to lease the parking lot to the City for an additional year with an optional six month extension. The Fender's have requested a new lease rate of $5,000 for the first year and $2,500 for the optional six months.

Councilmember Spallo asked if this lot was still necessary now that the parking garage was complete at City Hall.

Mr. Cox stated with the downtown construction continuing it was needed.

Councilmember Hallam suggested this item be moved forward for discussion at the next Council Meeting without a recommendation.

No action was taken by the committee.

Item 3 – Recommendation to Approve an Ordinance Authorizing the Execution of a Contract of Obligation By and Between The City of Lee’s Summit, Missouri and The Missouri Department of Natural Resources, to Satisfy the Requirements for a Financial Assurance Instrument With Respect to the City’s Permit to Operate a Solid Waste Disposal Area.

Darlene Pickett presented the Contract of Obligation with the Missouri Department of Natural Resources to satisfy the requirements of the State Solid Waste Management law for financial assurance for closure and post-closure activities at the City’s Landfill.

This contract is reissued periodically to account for any changes in closure and or post-closure plans and to adjust for inflation. This adjustment increased the amount obligated by $1,313,976 for a new contract of obligation of $8,452,899.55. The increase in the closure cost estimate is due to the costs associated with the purchase and haul of soil to complete capping at closure and inflation. The increase in the post closure cost is an inflationary increase only. This is the total calculated to close the landfill at completion and provide for thirty years of post-closure care.

Councilmember Williams recommended approval of An Ordinance Authorizing the Execution of a Contract of Obligation By and Between the City of Lee’s Summit, Missouri and the Missouri Department of Natural Resources to Satisfy the Requirements for a Financial Assurance Instrument with Respect to the City’s Permit to Operate a Solid Waste Disposal Area. Councilmember Hallam seconded the motion. The Committee voted unanimously to recommend approval.

2 Item 4 – Fiscal Year 2007-2008 Budget Presentation for the Proposed Schedule of Fees Changes

Kari Wolfe presented the 2007-2008 Schedule of Fees proposed changes.

Planning and Development – Legal Notice Publishing Charge change from $150 to $200. This covers the direct cost of the publication charge.

Codes Administration – After hour inspection fees are being raised from $33.83 hr. to $45.03 hr based on the same calculation method used by other departments for similar services.

Airport – Monthly Electrical Fees – This is a new fee being charged for certain electrical equipment used in non-metered hangars on a monthly basis.

Hanger Rental Fees are being increased by 1%. Chuck Owsley stated this would keep us in line with other airports.

Councilmember Spallo asked what our vacancy rate was. Mr. Ohrazda replied 6%.

Fuel Mark Up – Self Service Fueling System discount will be reduced from $.20/gallon to $.15/gallon; increase 100LL by $.03 for a new markup of $.74/gallon; increase MoGas by $.02 for a new markup of $.51/gallon; increase JetA by $.05 for a new markup of $1.14/gallon.

Water Utilities - Tap Fees – Water Tap Fee changes were approved by the City Council in November 2006.

Water meter set up charges – increase based on actual material costs from suppliers.

Public Works – Street Name Signs will be $65.00 for 2 signs, Regulatory Signs will be $21.00 per sign and Post Installation will be $93.00 per post.

After Hours Inspections will change from $41.61/Hr. to $45.11/Hr based on salary changes.

Landfill – Plain Wood Mulch will now be given at no charge.

Cemetery – Grave Spaces will change from $595 to $900 and Cremation Grave Space from $300 to $450.

Police - Special Detail will increase from $29.50/hr to $35.50/hr. Councilmember Spallo asked what Special Detail is. Chief Conlee replied this is when a police officer was requested to work at a special event. Examples include school events, security at the movie theater, or at ADESA.

Councilmember Williams recommended approval of the Fiscal Year 2007-2008 Budget Revised Schedule of Fees. Councilmember Hallam seconded the motion. The Committee voted unanimously to recommend approval

3 Item No. 5- Fiscal Year 2007-2008 Budget Presentation for Debt Service Funds

Kari Wolfe presented the Fiscal Year 2007-2008 proposed budget for the Debt Service Funds. For Fiscal Year 2007-08 it is anticipated that the remaining principal to be paid on the 1999 GO Bond issue will be redeemed in the GO Debt Service Fund. The Parks COP Fiscal Year 2006-07 balance is being retained to apply to the Fiscal Year 2007-08 debt service.

Presentation only, no action to be taken by the committee.

Item No. 6 – Fiscal Year 2007-2008 Budget Presentation for Short-term Disability, Unemployment, Insurance Reserve and Worker’s Compensation Self- Insurance Funds.

Kari Wolfe presented the Fiscal Year 2007-2008 proposed budget for the Short-Term Disability, Unemployment, Insurance Reserve and Worker’s Compensation Self- Insurance Funds.

Short Term Disability – The contribution rate of $48 per full-time employee will increase to $55 per full-time employee.

Workers Compensation – Interest revenues have been estimated at an average rate of 5.0% for Fiscal Year 2007-2008. Continuing claims management efforts have enabled the City to reduce premium requirements while maintaining adequate retentions.

Insurance Reserve Fund – Interest revenues have been estimated at an average rate of 5.0% for Fiscal Year 2007-2008.

Unemployment Trust Fund – Rates will remain unchanged again in Fiscal Year 2007- 2008 ($24/year/employee and $2/month/seasonal employee) to allow the fund balance to increase to the target level. Interest has been calculated for Fiscal Year 2007-2008 at an average of 5.0% on the fund balance at the end of the preceding fiscal year.

Item No. 7 – Fiscal Year 2007-2008 Budget Presentation for Fleet Operations

Mark Stinson presented the Fiscal Year 2007-2008 proposed budget for Fleet Operations. Expected expenditures for Fiscal year 2007-08 are $5,309,913 excluding expansion items. Expansion requests include two shop tools, security cameras and shop program software.

Item No. 8 – Fiscal Year 2007-2008 Budget Presentation for Information Technology Services.

4 Randy Dickey presented the Fiscal Year 2007-2008 proposed budget for Information Technology Services. Expected expenditures for Fiscal year 2007-08 are $2,501,417 excluding expansion items. Expansion requests include redesigning both city websites and implementing appropriate action items resulting from the ITS Management Study scheduled to be completed in early FY08. Also hiring a Web Administrator and an Administrative Assistant.

Roundtable:

Mr. Lamb mentioned again the City has received payments from cellular companies for their wireless franchise tax. They have paid under protest which means we have to segregate this money. The Law Department has responded to both companies regarding their payments under protest.

Next meeting is scheduled for March 6, 2007.

Adjournment: Meeting was adjourned at 8:42 a.m.