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HomeMy WebLinkAbout09-16-2002 CITY OF AUBURN FINANCE COMMITTEE September 16, 2002 MINUTES I. CALL TO ORDER Chair Fred Poe called the meeting to order at 6:00 PM in Conference Room 2 located on the second floor of Auburn City Hall, 25 West Main Street, Auburn. Members present included: Chair Poe, Vice Chair Trish Borden, and Member Gene Cerino. Others present during the meeting included: Mayor Peter B. Lewis, Finance Director Shelley Coleman, Human Resources Director Brenda Heineman, Compensation and Benefits Manager John Fletcher, City Attorney Daniel B. Heid, General Services/Fleet Manager Wayne Knapp, Assistant Finance Director Lee Hall, IS Administrator Lorrie Rempher, and Deputy City Clerk Cathy Richardson. The meeting was tape recorded. II. APPROVAL OF MINUTES A. Minutes of the September 3, 2002 Finance Committee meeting Vice Chair Borden moved and Member Cerino seconded to approve the September 3, 2002 minutes. MOTION CARRIED UNANIMOUSLY. 3-0. III. CONSENT ITEMS A. Vouchers 1. Claims F4.9.5 Claims check numbers 314077 through 314416 in the amount of $1,154,572.47 and wire transfer in the amount of $654,422.85 and dated September 16, 2002. Finance Committee Minutes for September 16, 2002 Page 2 2. Payroll F4.9.2 Payroll check numbers 501535 to 501692 in the amount of $538,585.65 and electronic deposit transmissions in the amount of $793,083.54 for a grand total of $1,331,669.19 for the pay period covering August 24, 2002 to September 6, 2002. B. Bad Debt Write-off F4.12 City Council to authorize the write-off of Business Improvement Area accounts receivable bad debts in accordance with City policy in the total amount of $8,289. Vice Chair Borden moved and Member Cerino seconded to approve the consent agenda. MOTION CARRIED UNANIMOUSLY. 3-0. IV. ORDINANCES AND RESOLUTIONS A. Resolution No. 3500 A3.9.7 A Resolution of the City Council of the City of Auburn, Washington, approving the Collective Bargaining Agreement between the City and the International Association of Fire Fighters' Local #3152 for 2002 - 2004. Vice Chair Borden moved and Member Cerino seconded to approve Resolution No. 3500. In response to questions from Vice Chair Borden, Human Resources Director Brenda Heineman stated that the rate of sick leave accrual of one, twenty-four hour shift per month is common in the fire fighting industry. One day of sick leave used is equal to twenty-four hours. MOTION CARRIED UNANIMOUSLY. 3-0. Finance Committee Minutes for September 16, 2002 Page 3 B. Resolution No. 3528 A3.9.6 A Resolution of the City Council of the City of Auburn, Washington, approving the Collective Bargaining Agreement between the City of Auburn and the Courthouse Clerical and Custodian Bargaining Unit, Teamsters Local No. 117, for 2002-2004. Vice Chair Borden moved and Member Cerino seconded to approve Resolution No. 3528. MOTION CARRIED UNANIMOUSLY. 3-0. C. Resolution No. 3529 A3.9.5 A Resolution of the City Council of the City of Auburn, Washington, approving the Collective Bargaining Agreement between the City of Auburn and the Outside Unit, Teamsters Union Local No. 117, for 2002-2004, Vice Chair Borden moved and Member Cerino seconded to approve Resolution No. 3529. MOTION CARRIED UNANIMOUSLY. 3-0. V. DISCUSSION ITEMS A. Finance Department 2003 Budget Finance Director Shelley Coleman distributed copies of the 2003 Preliminary Finance Department expenditures. Director Coleman reviewed proposed expenditures for the Mayor and Council, and the Finance Department. Director Coleman pointed out that Council expenditures for personnel benefits reflects the addition of one staff member. In response to questions from Vice Chair Borden regarding the large increase in personnel benefits, Director Coleman noted that an incorrect formula was used to calculate the expenditure for benefits. Director Coleman stated that staff would make the necessary corrections. Finance Committee Minutes for September 16, 2002 Page 4 Director Coleman reported that there are significant changes in the Mayor's budget expenditures. Budget expenditures moved from other departments include changing one part time staff member to a full time staff member, the addition of the Government Services Specialist and Public Relations/Media Consultant positions, as well as communication and advertising costs for the Auburn Reporter. The budget also reflects an increase in miscellaneous expenditures, which include Association of Washington Cities membership fees. Director Coleman reported that the Finance Department budget has been consolidated from six divisions to four divisions, including Administrative, Budgeting, Accounting and Auditing, Central Stores/Printing, and Information Systems (IS) divisions. Personnel benefits in the Administration division have been reallocated with regard to the Finance Director and Finance Secretary positions, and also include the Assistant Finance Director and Financial Analyst positions. Director Coleman stated that there are decreases in small tools and equipment, supplies and miscellaneous expenditures. Director Coleman reported that the Budgeting, Accounting and Auditing division budget includes increases in purchasing and payroll due to reallocations from other funds. Professional services include the costs for the Eden System upgrades. Central Stores/Printing division budget reflects a decrease in salaries and wages, which were reallocated to other divisions. Supplies increased due to new purchasing procedures and other services and charges and professional services increased due to outsourcing of printing jobs. The printing press equipment will be surplused. An increase in communication expenditures reflects the reallocation of bulk mail services. Director Coleman pointed out that any increase in budgetary expenditures in one fund will be reflected as a deduction in expenditures in other funds. IS Administrator Lorrie Rempher explained that operating rentals and leases, including all the photocopy machines and other leased equipment throughout the City, was formerly allocated to each individual budget. Operating rentals and leases are now allocated I II Ii IIIF Finance Committee Minutes for September 16, 2002 Page 5 to printing operations since City equipment is managed by this division. In response to questions from Member Cerino, Ms. Rempher stated that outsourcing of printing services is accomplished through the bid process. Requests for bids are sent to local Auburn printing vendors. Ms. Rempher reported that staff performed a six-month study comparing in-house costs versus out-sourcing costs on various print jobs. It is much more cost effective to out-source jobs rather than pay maintenance and leases on the various equipment needed to complete the jobs. Availability of improved technology allows for many print jobs to be completed through the use of photocopiers, eliminating the need for printing press equipment. Director Coleman stated that the IS budget includes IS program improvements. Director Coleman referred Committee members to a list of 2003 IS enhancements requests that are funded in the 2003 budget. Committee members reviewed various IS requests, including video conferencing, cable TV and sound system, security and access control projects, and City Council information access. Director Coleman reviewed program improvement requests, including an Accounting Specialist position, video conferencing and government access TV capabilities, and a Network Analyst- Database/Report Writing position. The City supports various computer systems and many programs. A network analyst would enable a reduction in licensing fees and professional services. B. Le.qal Department 2003 Bud.qet City Attorney Daniel B. Heid explained that the Legal Department includes the City Clerk, Prosecution, and Administration divisions. The Prosecution/Criminal budget was initiated to accurately track costs associated with criminal justice and law enforcement. Attorney Heid reported that the City Clerk budget expenditures are similar to 2002 expenditures, with the exception of downgrading the Assistant City Clerk position back to a Records/Registration and Licensing Clerk position. Due to Legislative imposition of strict tracking and response requirements, the City Clerk division has experienced a tremendous increase in volume related to records requests management. Finance Committee Minutes for September 16, 2002 Page 6 Attorney Heid reviewed the Administration and City Attorney budget expenditures. Program improvements include an Assistant City Attorney position and a half-time Legal Secretary position. A reduction in professional services for outside legal counsel from both the City Attorney and the Planning and Community Development Department expenditures, will cover costs for the program improvements requested. Specialized areas of legal expertise may still require outside legal counsel. C. Human Resources Department 2003 Budget Human Resources Director Brenda Heineman reviewed Municipal Court budget expenditures, including adjustments in professional services for a Judge Pro Tem and interpreting services, and in benefits and wages. Director Heineman reported that the Probation division experienced an adjustment in professional services expenditures. Due to the closing of the Cedar Hills treatment facilities, staff was unable to process enough incarcerees through the treatment and release program. Staff is currently researching alternative treatment facilities. Probation fees will increase from $50 to $75 per individual beginning October 1, 2002. Director Heineman reviewed the Personnel division expenditures, including adjustments to professional services, wages and benefits, and advertising costs. Director Heineman reported that Civil Service Commission expenditures include an adjustment to professional services. The Civil Service Commission cannot be represented by City of Auburn legal counsel. Outside counsel must be hired in the event of an appeal. D. Equipment Rental Division 2003 Budget General Services/Fleet Manager Wayne Knapp reported that the Equipment Rental budget expenditures include a minor adjustment to salaries and a program improvement request for an Emergency Vehicle Mechanic position. The program improvement replaces a retiring fire fighter who has acted as mechanic for emergency vehicles. The program improvement requested for an Emergency Finance Committee Minutes for September 16, 2002 Page 7 Vehicle Mechanic would allow that firefighter position to function as a firefighter again. Director Coleman explained that a review of working capital revealed errors in the formula used for the operating rental equipment rate. There are two components of the rate consisting of the operations and maintenance of the equipment, and the accumulation of capital for the replacement of the apparatus. Staff developed a program to correct the error and to recoup the capital shortage over a four-year period, which means that equipment rental rates will increase for that period. Mr. Knapp stated that, in 2003, Equipment Rental will recoup approximately $227,000 of the capital lost over year 2002. E. VEBA Plan Director Heineman referred to materials formerly distributed to Committee members. Director Heineman stated that the long-term care insurance would initially be offered to unaffiliated employees. The cost for the basic benefit is approximately $8,000 per year. The cost of the VEBA package, if offered to unaffiliated employees, is approximately $36,000 per year. Committee members spoke in favor of moving forward with the long-term care insurance. Due to economic instability, Committee members spoke in favor of deferring the VEBA package for unaffiliated employees at this time. F. City Council Meetin.qs Mayor Lewis proposed adopting an ordinance what would provide for a study session for the City Council anytime a fifth Monday occurs within a month. Mayor Lewis proposed that the duration for a study session be two hours, with the agenda to be set by the chairs of the four Council committees. Due to budgetary and legislative issues, loss of revenue, tremendous quantities of information that must be processed by staff, commissions, and committees, and decisions that must be made by Council, Mayor Lewis urged Committee members to consider meeting on the fifth Monday within a month. There was no action taken by the Committee on this issue. Finance Committee Minutes for September 16, 2002 Page 8 VI. ADJOURNMENT There being no further business to come before the Finance Committee, the meeting adjourned at 7:15 PM. APPROVED T, IS ~/ OA~ OF OCTOBER, 2002. Cathy-I~{~h-ardson, ' Deputy City Clerk I:\clerk~finance\f~a~OO2fcm09~ 10