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Home My WebLink About04-16-2007 CITY OF '~ WASHINGTON MINUTES FINANCE COMMITTEE APRIL 16, 2007 I. CALL TO ORDER Chair Nancy Backus called the meeting to order at .6:30 p.m. in the Council Conference Room at Auburn City Hall located at 25 West Main Street in Auburn. Committee members present were: Chair Backus, Vice Chair Roger Thordarson, and Member Gene Cerino. Also present during the meeting were Mayor Peter B. Lewis, Finance Director Shelley Coleman, City Attorney Daniel B. Heid, Human Resources and Risk Management Director Brenda Heineman, Information Services Director Lorrie Rempher, Community Development Administrator David Osaki, Public Works Director Dennis Dowdy, and Deputy City Clerk Cathy Richardson. II. APPROVAL OF MINUTES A. Minutes of the April 2, 2007 Finance Committee meeting. Vice Chair Thordarson moved and Member Cerino seconded to approve the April 2, 2007 minutes. MOTION CARRIED. 3-0. III. CONSENT ITEMS A. Vouchers 1. Claims F4.9.5 Claims check numbers 361357 through 361758 in the amount of $2,786,827.33 and a wire transfer in the amount of $4,064.84 and dated April 16, 2006. 2. Payroll F4.9.2 Payroll check numbers 519157 to 519271 in the amount of $633,810.37 and electronic deposit transmissions in the Page 1 Finance Committee Minutes April 16, 2007 amount of $953,942.21 for a grand total of $1,587,752.58 for the pay period covering March 29, 2007 to April 11, 2007.. Committee members reviewed discussed claims voucher 361440, 361456, and 361524. the consent items and briefly numbers 361360, 361439, Vice Chair Thordarson moved and Member Cerino seconded to approve the consent items. MOTION CARRIED. 3-0. IV. ORDINANCES AND RESOLUTIONS A. Ordinance No. 6092 F3.21 An Ordinance of the City Council of the City of Auburn, Washington amending Ordinance No. 6066, the 2007-2008 Biennial Budget Ordinance as amended by Ordinance No. 6086 and authorizing amendment to the City of Auburn 2007-2008 Budget as set forth in Schedule "A" Finance Director Coleman briefly reviewed revised Schedule "A" to Ordinance No. 6092 transmitted via agenda modification. Vice Chair Thordarson moved and Member Cerino seconded to recommend approval of Ordinance No. 6092. MOTION CARRIED. 3-0. B. Resolution No. 4176 03.1 A Resolution establishing August 21, 2007 as the date of a Special Election on the question of annexation to the City of Auburn, of an unincorporated area known as the "Lea Hill Annexation Area" (See Item IV.C below for action on this item.) C. Resolution No. 4177 03.1 A Resolution establishing August 21, 2007 as the date of a Special Election on the question of annexation to the City of Auburn, of an unincorporated area known as the "West Hill Annexation Area" Page 2 Finance Committee Minutes April 16, 2007 City Attorney Heid stated that Resolution Nos. 4176 and 4177 place on the ballot for the August 21, 2007 elections the annexation areas to the east and west of the Auburn city limits. City Attorney Heid reviewed language which requests that Council empower the Mayor to transmit the names of the volunteers to serve on the voters' pamphlet committees to write the statements for or against the proposed annexation ballot measure in a subsequent communication to King County Auditor as we have not received confirmation of the volunteers names. Vice Chair Thordarson moved and Member Cerino seconded to recommend approval of Resolution No. 4176 and Resolution No. 4177. MOTION CARRIED. 3-0. D. Resolution No. 4178 A3.16.6, A3.16.10 A Resolution of the City Council of the City of Auburn, Washington authorizing an Agreement for Professional Services with Olympic Security Services Inc for security services at the Auburn Municipal Court Vice Chair Thordarson moved and Member Cerino seconded to recommend approval of Resolution No. 4178. MOTION CARRIED. 3-0. V. DISCUSSION ITEMS A. Ordinance No. 6084 An Ordinance of the City Council of the City of Auburn, Washington, adding a new Chapter 13.52 to the Auburn City Code and amending Section 13.06.210 of the City Code prohibiting deceptive and fraudulent practices related to third party billing for master metered or other un-metered utility services provided to multi-family and multi-dwelling unit buildings City Attorney Heid distributed revised Ordinance No. 6084 which incorporates changes made in other Council committees. Some of the changes include language regarding timely responses to tenant complaints and posting by the landlord of the process for billing Page 3 Finance Committee Minutes April 16, 2007 practices, registering complaints, and the provisions of the ordinance. Member Cerino commented on various impacts to tenants in facilities that are master-metered. B. Monthly Utility Billing Director Coleman reviewed Auburn City Code changes required for implementation of monthly versus bi-monthly utility billing. Director Coleman also reviewed assessment of late fees and the process for shut-offs due to non-payment. Director Coleman reported on comparisons of other municipalities regarding additional fees assessed related to utility billings. C. Solid Waste Fund Director Coleman reviewed excess cash in the solid waste fund and recommended that Committee members consider aone-time increase in the current utility tax rate on gross revenues for a twelve month period. D. Five Percent Cable Utility Tax Terry Davis stated that he is the Franchising and Government Affairs Director for Comcast Cable Communications, Inc. Mr. Davis reported that it has come to the attention of Comcast that the City of Auburn is considering an imposition of a cable utility tax in the amount of five percent. Mr. Davis presented a letter of protest addressed to the Finance Committee members dated April 16, 2007. Mr. Davis stated that Comcast currently pays the City of Auburn five percent of its gross revenues as a franchise fee pursuant to its cable franchise agreement. Historically, the City has credited Comcast's five percent franchise fee against the five percent utility tax that is imposed on other private utilities serving the City. If the City imposes a five percent cable utility tax, then Comcast would be taxed at a rate of ten percent, which is twice what other private utility providers are required to pay. Mr. Davis indicated that any additional tax burden would be passed on to the consumer, causing many customers to disconnect service. Mr. Davis stated that an imposition of an additional five percent tax is an unfair burden on Comcast. Mr. Davis requested that the City consider imposing an additional one percent utility tax for all utilities in lieu of imposition of an additional five percent cable Page 4 Finance Committee Minutes April 16, 2007 utility tax. Mr. Davis indicated Comcast's willingness to work with the City of Auburn to find a solution to this issue. Member Cerino indicated that the letter of opposition distributed by Mr. Davis was not received by the Municipal Service Committee this evening. Committee members agreed to review the issues related to imposition of an additional five percent cable utility tax. E. Public Works Full Time Employees (FTE's) Director Heineman reviewed the need for additional staff to improve customer service levels and accommodate the demand for increased developer related developments within the City. Director Heineman requested support of the budget amendment presented this evening. F. Veteran's and Mausoleum Buildings Director Coleman reported on additional costs for the Mountain View Cemetery mausoleum building due to change orders for unforeseen problems with regard to installation of power to the building and also additional right-of-way. Director Coleman also reported that the contractor for the Veterans Memorial Park building submitted change orders in the amount of $50,000 for additional costs related to sewer issues, project administration issues, and thefts occurring at the site. Of those additional change orders, $30,000 has been denied and $20,000 is still in dispute. VI. ADJOURNMENT There being no further business to come before the Committee, the meeting adjourned at 7:25 p.m. APPROVED THE 7~ DAY OF MAY 2007. Nancy c s, Chair Cathy Rich son, Deputy City Clerk I:\cle rk\fi n a nce\fca\2007fca04-16 Page 5