Loading...
HomeMy WebLinkAboutMinutes_GGAF_06.01.2010 L:\Division\finance\Share2\GGAFSub\GGAF Meetings\2010\8.3.10\8.3.10DRAFTMinutes6.1.10.doc NOTICE OF MEETING OF THE GENERAL GOVERNMENT AND FINANCE (GGAF) ADVISORY SUBCOMMITTEE OF THE CITY OF GEORGETOWN, TEXAS Notice is hereby given that the General Government and Finance (GGAF) Advisory Subcommittee established by the Georgetown City Council met at 1:30 p.m. on Tuesday, June 1, 2010, in the Georgetown Municipal Complex Williamson Room, located at 300-1 Industrial Blvd, Georgetown, Texas. MINUTES These minutes were approved at the August 2, 2010 GGAF Meeting. Dale Ross called the meeting to order at 1:34 p.m. 1. Selection of Chair for GGAF Advisory Subcommittee: Danny Meigs nominated Dale Ross for Chair of the GGAF Advisory Subcommittee. Patty seconded. Dale Ross is the new chair. 2. Review minutes from the May 4, 2010 GGAF Meeting. Patty noted that the item regarding the SAFER Fire Grant was from FEMA instead of FEEAM as noted in the minutes and Item Summary from May 4th. The minutes were approved with the correction mentioned above. Danny asked if the GGAF Committee had written goals and guidelines. Micki explained that it was a trial committee first which involved into a standing committee. Danny said that he would like a clear idea of the message and asked Micki to bring some “draft” goals/guidelines to the next meeting to get a better idea of what GGAF’s role should be. Patty said that committee started as an “adhoc” committee, brought together to deal with retirement plans, benefits, and then grew into adding the general government part of Finance. Patty said that she would support going back to an “adhoc” committee, noting that there are obvious items that need to be dealt with in this form of subcommittee, but needs to be limited to certain item. She has seen a problem with the some information getting to the full council at the same time, noting that she thinks the full council Members Present: Dale Ross, Chair, Patty Eason, Danny Meigs Members Absent: None Staff Present: Micki Rundell, Laurie Brewer, Leticia Zavala, Glenn Dishong, Mike Peters, Terry Jones, Kevin Russell L:\Division\finance\Share2\GGAFSub\GGAF Meetings\2010\8.3.10\8.3.10DRAFTMinutes6.1.10.doc could have benefitted from some items and presentations that were only presented to GGAF. Dale noted that some important financial matters have been discussed during committee meetings that would have added a significant amount of time to Council meetings if they were discussed on the dais. Danny said that he has no problem reviewing important financial matters, he would just like to have a clear idea of what the mission is. Micki said that she feels this committee serves a very important role and has been very helpful and beneficial to her. She will work on goals, objectives and guidelines which will be placed on the next GGAF Agenda, as well as, Patty’s item regarding whether it will be regularly scheduled meetings or an “adhoc” committee based on what was originally formulated. 4. Consideration and possible action to recommend Clifton Gunderson, LLP as the audit firm to serve as the City’s external auditors for a three year period, beginning with the current fiscal year. Laurie reported that 7 firms submitted proposals and after the team (made up of staff members) reviewing all proposals, 4 firms were invited to do presentations. Firms interviewed were Belt Harris (Houston), BKD (Dallas), Clifton Gunderson (Austin) and Davis Kinard (Abilene). Clifton Gunderson had so many resources, both locally and nationally, that they were the unanimous decision. Glifton Gunderson gave a presentation on their services (full presentation available at City Hall). Dale thanked them for giving an overview of their firm. Laurie wanted to point out that Clifton Gunderson has audited an electric utility before, and thought this was worth noting. Since our utility has grown over the recent years, the committee felt that they would be able to help us ensure that we put everything in place to help us keep up with this growing utility. Dale clarified that the staff recommendation was for the committee to go back to Council with just one firm. Micki explained that originally the committee wanted to bring 2 firms to Council for review, but they now feel that Clifton Gunderson would provide a different level than the other firms interviewed and our previous audit firm, thus being able to “push us” to look at different checks and balances that we might have not thought of. Danny agreed that there had been a thorough study and recommends that the committee goes with staff recommendation. Dale and Patty agreed. This item will be on the next Council agenda. 3. Summary regarding “Other Finance Agenda Items and Items of Interest” A. Discussion and possible recommendation to convert ESRI Mapping Software License to a “site license” at a cost of $26,000 to $28,000 for the first year. Mike Peters said that staff recommends that the City’s current software arrangement with ESRI be converted to a “site license”. ESRI is the City’s vendor for Geographic Information System (GIS) mapping software. The ESRI small government site license is a three year contract in which the City would pay a flat yearly fee and, in return, would able to install an unlimited number of GIS software licenses on our servers and workstations without additional maintenance costs. The site license includes all major software products offered by ESRI. The yearly fee is based on a community’s population. Currently, the City pays full price for each software license that it installs as well as yearly maintenance on each individual license. Entering into the site license during this fiscal year offers several advantages:  The site license price will increase if City waits until next year because the Census will likely show a City population of over 50,000, putting us in a higher price bracket  ESRI pricing strategies make the site license more cost effective after an organization reaches a certain level of software licensing – we have reached that point  Planned upgrades to the Automated Meter Infrastructure, Computer Aided Dispatch, and Customer Information System will rely on GIS software to provide a portion of their required data, increasing the number of GIS software licenses needed over the next six years  It allows budgeting for a set amount of software maintenance costs as opposed to seeing large step increases occurring in a single year  It allows mapping staff to expand its GIS software toolset and fully capitalize on the City’s GIS investment  It includes training opportunities not currently available to mapping personnel Patty made a motion to recommend converting the software with ESRI to a “site license”. Dale agreed with that recommendation. B. Report on the City’s Internal risk assessment/internal control report. Laurie Brewer gave an overview of the program and explained that Accounting personnel had met with each division to ensure L:\Division\finance\Share2\GGAFSub\GGAF Meetings\2010\8.3.10\8.3.10DRAFTMinutes6.1.10.doc that they understood the Fiscal and Budgetary policy, and try to identify any areas for risk or fraud. They approached it through the standpoint that “we wanted to help”. Although they didn’t find any major areas they felt needed changing, there were areas identified where improvements could be made. Issues discussed included written policies and procedures, credit cards and travel processes, uncapitalized assets, risk identification and training opportunities for the divisions. Most divisions had some written control policies in place, including Finance, Fire, GUS, Management Services and Police. While Community Services and Community Development follow the standardized cash collection policies, it is recommended that they document processes in order to ensure consistency. Overall, every division lacked written controls to safeguard uncapitalized assets. Finance will be writing a standard policy, however it is suggested that each division adopt a procedure to safeguard these assets. Another city-wide concern concerns training for volunteers. Georgetown is fortunate to have volunteers assist in various areas, as well as during special events. Finance will work on addressing comprehensive fund raising procedures, as well as quarterly training to ensure our volunteers are adequately prepared to protect city assets. Cross training was another area where most divisions needed improvement. In many areas, there is only one person who does certain tasks. Documentation of processes, as well as cross training, will prevent the City from potential loss of resources and efficiency when individuals are out of their work environment. In many cases, staffing levels limit the ability to effectively cross train. All divisions supported the idea of an anonymous fraud reporting hotline. This was implemented in November 2009. To date, the City has received several complaints through the hotline, however these were management issues, not potential fraud reports. Another area where the City may be able to improve controls is to review the credit card policy and numbers of credit cards outstanding. The Police Department has already begun a process to lower the number of cards issued in the department. A process has begun to put all of the credit card reports on the share directory, so that divisions have the most up to date information as quickly as possible. It is also suggested that employees utilize the per diem policy when traveling whenever possible to limit costs for meals as well as the need for auditing receipts. Facilities access was an area that immediately surfaced during the audit. A procedure was immediately put into place to document employees with access and ensure that division directors approve any changes to an employee’s access to various facilities. There will be a City-wide cash handling training offered in October and volunteer training in August. In conclusion, this risk assessment provided each division with a heightened sense of awareness of internal controls, while revealing areas for improvement. This risk assessment should be done at least every other year. Staff expects a new audit/CPA firm for the fiscal year 2010, therefore will welcome additional comments from a new perspective and look at the City’s internal controls. C. Update on current active projects. Leticia Zavala gave an update on the status of current projects. Computer Aided Dispatch/Records Management System (CAD/RMS): The project is on schedule and under budget. 50% of the CAD and 10% of the RMS audits have been completed. FireHouse has been installed and fire personnel continue to work on the code tables and “pick” lists. The message switch and automated vehicle locator will be installed in June. The training phase will begin in July and the expected “go live” date is mid October. Mike has been working with them as the IT contact. Telephone System Upgrade: The initial phase of the telephone system upgrade including basic call features and call center capabilities was completed in late April 2010. Additional phases including enhanced voicemail call features, and mobile phone integration will be done in the coming months with a targeted completion date of mid June 2010. New E-Mail Format Update: With the upgrades to Microsoft Active Directory and Lotus Notes, the City is transiting to a new email address format to provide a more consistent image to the public and ties to the “branding” of the website. The standard email format for all users will be firstname.lastname@georgetown.org. This new address allows the syncing of the website name with the email format and standardizes all email L:\Division\finance\Share2\GGAFSub\GGAF Meetings\2010\8.3.10\8.3.10DRAFTMinutes6.1.10.doc addresses for employees. Both the “old” email format and this “new” format will be valid for 12 months to allow time for notification of the change to citizens and vendors. Automated Metering Infrastructure (AMI): Staff is seeking recommendations from the GUS and GGAF Boards in May/June 2010 to begin the process of negotiating a contract and will request final approval from Council to enter into contract negotiations with Elster Integrated Solutions for the AMI project in early June 2010. The City began the process of finding and implementing a new automated metering infrastructure (AMI) to replace the existing advanced meter reading system (AMR) in July 2009. This project upgrades the existing one-way communication system (meter to office) with two-way communication (meter to office and back to meter) and allows for time of use rates and provides basis for “smart house” technology. Timeline as follows:  Development and release of RFP – July/Aug 2009  RFP deadline – Sept 2009  Evaluation workshops and top 2 vendors selected – Nov 2009  Vendor interviews – Dec 2009  Reference checks – Jan 2010  Site Visits – Feb 2010  Evaluation and final recommendation –Apr 2010  Contract Negotiations –Jun 2010  Start initial implementation – Jun/Jul 2010 Customer Information System (CIS): The City began the CIS replacement process in October 2009 to align with the AMI project to support the new enhancements that will be available with the new technology. Providing such data to the customer base will lay the foundation for new services such as billing time of use rates and help customers with “green” initiatives. Timeline as follows:  Development and release of RFP – Dec 2009  Pre-Bid conference, Q&A, RFP deadline – Jan 2010  Evaluation workshop and top vendors selection – Feb 2010  Vendor interviews – May 2010  Reference checks – Jun 2010  Site Visits (optional) – Jul 2010  Evaluation and final recommendation – Aug 2010  Contract Negotiations – Sep 2010  Start initial implementation – Jan 2011 5. Consideration and possible action to recommend the City contract with JP Morgan Chase for depository services for the two year period beginning September 1, 2010, with an annual option to renew for up to three more years. Staff recommends that the City continue the relationship with JP Morgan Chase for depository services. There was a full RFQ for depository services. Each bank was evaluated based on its ability to provide the technical and customer service support for the City’s depository needs, as well as the ease of use of technology to provide efficient means for staff to administer funds. Fees were reviewed to determine the best value to the City. Staff negotiated with JP Morgan Chase to continue to provide a high level of service, while reducing the costs that the City currently incurs for depository services. Chase’s proposal, which includes waiving of five months of analysis fees, would reflect the overall lowest cost to the City for the two year period, saving 51.5% over the current contract prices. This savings is further enhanced by not spending staff resources to convert existing systems to a new banking system. The average annual cost for the two year period is estimated at $23,500, including the credit for waiving five months of fees. If the City exercises its annual option to renew, the estimated annual cost is $30,400, or 37% under the current annual contract cost. Contracts are currently being reviewed by Legal and will be included in the Council packet. Staff expects to bring this to the Council on the June 22 meeting. Patty Eason made the motion, seconded by Dale Ross to endorse staff’s recommendation to continue the relationship with JP Morgan Chase. 6. Consideration and possible action for the award of the bid for renovations to the Municipal Complex Building to Zapalac Reed Construction in the amount of $540,600.00. Terry Jones reported that in August 2009 the City Council approved the selection of an architect to provide design services for renovations to the Municipal Complex Building. These renovations would be performed to relieve crowded conditions in the L:\Division\finance\Share2\GGAFSub\GGAF Meetings\2010\8.3.10\8.3.10DRAFTMinutes6.1.10.doc Utilities area by removing walls, bringing in natural light and incorporating the use of standardize modular furniture sizes and configurations. The project will be performed in phases with the back section of the building (field workers) being renovated in phase I, the front section (office and administrative personnel) renovations in phase II, and the relocation of the dispatch area in phase III. If approved, we would realize and immediate increase in 10 spaces with expansion room for approximately 10 to 15 more spaces. The entire project is scheduled to be completed in approximately 90 days. To continue our goal of facility energy reduction of five percent each year for the next five years, we have included in the project options for the use of LED lighting; bringing in more natural light to reduce the need for man-made light; continued use of energy management systems for the control of HVAC and lighting; and the installation of energy efficient HVAC equipment for the new dispatch area. We have checked the references and qualifications for Zapalac Reed Construction and they are well qualified to perform this work. Tom Nichols was also available to answer questions and also endorsed Zapalac, based on previous instances of working with them. Motion by Danny Meigs and seconded by Patty Eason, agreeing with staff’s recommendation. 7. Discussion and possible recommendation to award the project for the acquisition and deployment of an Advanced Metering Infrastructure (AMI) system to Elster Integrated Solutions and to begin contract negotiations for the purchase and installation of the system. Glenn Dishong gave a presentation and explained that the City began the process of finding and implementing a new automated metering infrastructure (AMI) to replace the existing advanced meter reading system (AMR) in the summer of 2009. This project upgrades the existing one-way communication system (meter to office) with two-way communication (meter to office and back to meter) and allows for time of use rates and provides basis for “smart house” technology. Staff has completed its evaluation of the proposals submitted by AMI vendors with the assistance of Westin Engineering as part of the contract for evaluation and project management services approved by City Council on May 12, 2009. Proposals form 5 vendors were received in September 2009. Following evaluations of the proposals for compliance with system specifications, cost, schedule, and other factors, three firms were selected to make follow-up presentations to staff. Following the presentations, two firms were short listed for reference site visits and follow-up questions. The reference checks and site visits were completed by staff during the month of February 2010. Based upon system performance, ease of installation, substantially lower total cost of ownership (lifecycle), and lower cost of expansion, the Elster Integrated Solutions proposal was selected as the proposal that met the needs of the city. Staff recommends the City move forward with contract negotiations with Elster Integrated Solutions for the acquisition and deployment of an AMI system to replace the existing AMR system. Total project cost for this system upgrade is anticipated at $8.9 million prior to the start of contract negotiations. This item was presented to the GUS Board at their May 14, 2010 meeting and was approved 6- 1. Danny Meigs made the motion and Patty Eason seconded to agree with the recommendation to continue negotiations. Patty noted that this is the kind of item, in her opinion, that doesn’t need to come to the GGAF Committee as it has already been to another board. Dale agreed. 8. Presentation and discussion regarding City of Georgetown’s 2010/2011 Compensation and Benefits recommendation. Kevin Russell gave an overview/informational update. He noted that there were really no actions that needed to be taken, but wanted to give the committee a “heads-up” on what was going on with Comp and Benefits. He explained that HR Staff reviews the competitiveness of the pay system and makes recommendations through City management to Council for implementation of any changes. Compensation: Employees will not be getting anything in regards to increases in compensation  COLA – No increases proposed  Merit Based Pay – No salary range movement proposed L:\Division\finance\Share2\GGAFSub\GGAF Meetings\2010\8.3.10\8.3.10DRAFTMinutes6.1.10.doc  Performance Based Pay Bonus – No monies earmarked for bonus payouts Benefits: HR Staff and the Benefits Committee will start reviewing information on the current plan and identifying ways to maintain a competitive benefits program while minimizing plan cost increases. Council feedback will be solicited in the following areas:  Healthcare Reform  TML claims and performance  Use of Benefits Consultant Additionally, to ensure the City remains competitive with its benefits, City contributions will be looked at and recommendations for increases and/or continuation/elimination of supplements/contributions will be made in the following areas:  Dependent/Family Supplement  Opt Out Supplement  HSA Contribution  Retiree Healthcare Council Action will be required to authorize City supplements and/or incentives, and to authorize the City to enter into benefits contracts. The budget is being prepared with a projected 15% increase in Benefits. Staff will work to come up with a recommendation that stays within the monies allocated within the budget. 9. Meeting adjourned at 3:25 p.m.