HomeMy WebLinkAboutITEM III-D
A TY OF
WASHINGTON
MINUTES
FINANCE COMMITTEE
AUGUST 18, 2008
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. Chair Backus and Member Bill Peloza were present.
Vice Chair Sue Singer was excused. Present during the meeting were
Mayor Peter B. Lewis, Finance Director Shelley Coleman; City Attorney
Daniel B. Heid, Human Resources/Risk and Property Management
Director Brenda Heineman, Risk Manager Rob Roscoe, Planning, Building
and Community Director Cindy Baker, Principal Planner Elizabeth
Chamberlain, and City Clerk Danielle Daskam. Also, present were Jeff
Oliphant from Auburn Professional Plaza LLC and Steve Harris.
II. APPROVAL OF MINUTES
A. Minutes of the August 4, 2008 Finance Committee meeting.
Member Peloza moved and Chair Backus seconded to approve the
August 4, 2008 minutes.
MOTION CARRIED. 2-0.
III. CONSENT ITEMS
A. Vouchers
1. Claims
F4.9.5
Claims check numbers 377230 and 377320 through 377732
in the amount of $2,066,803.00 and a wire transfer in the
amount of $4,182.00 dated August 18, 2008.
2. Payroll
F4.9.2
Payroll check numbers 524128 through 524280 in the
amount of $853,519.21 and electronic deposit transmissions
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Finance Committee Minutes August 18, 2008
in the amount of $1,157,961.44 for a grand total of
$2,011,480.65 for the pay period covering July 31, 2008 to
August 13, 2008.
B. Call for Public Hearing - Preliminary 2009-2010 Biennial
Budget
F3.22
City Council to call for a public hearing to be held on September
15, 2008 to receive public comments and suggestions with regard
to development of the preliminary 2008-2010 Biennial Budget,
including revenue estimates and possible increases in property
taxes
Committee members reviewed the consent items and briefly discussed
vouchers 373329, 377335, 377337, 377343, 377346 and 377665.
Member Peloza moved and Chair Backus seconded to approve the
consent items.
MOTION CARRIED. 2-0.
IV. ORDINANCES AND RESOLUTIONS
A. Ordinances
There was no ordinance for Committee review.
B. Resolutions
1. Resolution No. 4390
02.7, A3.17
A Resolution of the City Council of the City of Auburn,
Washington, authorizing the Mayor and City Clerk to execute
a lease agreement between the City of Auburn and Valley
Regional Fire Authority (VRFA)
Human Resources/Risk and Property Management Director
Heineman distributed a revised lease agreement. The legal
description of the property is now included and provisions for
access and shared parking have also been added.
Member Peloza moved and Chair Backus seconded to
forward Resolution No. 4390, as revised, to the full Council.
MOTION CARRIED. 2-0.
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Finance Committee Minutes August 18, 2008
2. Resolution No. 4391
02.7, A3.17
A Resolution of the City Council of the City of Auburn,
Washington, authorizing the Mayor and City Clerk to execute
a lease agreement between the City of Auburn and Valley
Regional Fire Authority (VRFA)
Committee members reviewed Resolution No. 4391.
Member Peloza moved and Chair Backus seconded to
forward Resolution No. 4391 to the full Council.
MOTION CARRIED. 2-0.
V. DISCUSSION ITEMS
A. Project Number MS0802
04.4.8.1 MS0802
City Council award Contract No. 08-05, Project No. MS0802,
Auburn Airport North Hangar Repair Project, to Chet Williams
Construction Inc. in the amount of $54,173.55.
Committee members reviewed Contract No. 08-05 for Project No.
MS0802.
B. Banking Services Contract
Finance Director Coleman reviewed the six proposals received for
city-wide banking services. The two firms with the lowest estimated
monthly costs were KeyBank and Wells Fargo. Both banking firms
were interviewed to gather additional information and clarify items
in their responses to the City's request for proposals.
Director Coleman recommended awarding the banking services
contract to KeyBank given their relatively low cost, KeyBank's
history with the City and the community, and the cost of converting
systems and processes for the entire City if another vendor was
chosen.
The banking services contract will be presented to the Committee
and the full Council for approval on September 2, 2008. The
proposed contract term is four years.
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Finance Committee Minutes August 18, 2008
C. Resolution Nos. 4393 and 4394 relating to Auburn Professional
Plaza LLC Purchase and Sale Agreement and Lease Agreement
Human Resources/Risk and Property Management Director
Heineman reviewed the Purchase and Sale Agreement and Lease
Agreement between the City and Auburn Professional Plaza LLC
as well as the condominium documents.
The lease provides for the lease of 51,903 square feet of space,
including common areas, in the Auburn Professional Plaza. The
City will occupy the entire second floor and a portion of the third
floor. Committee members reviewed compensation from the
Landlord for tenant improvements made by the City as well as the
lease rates. The lease rate for the first 42,114 square feet of
rentable area is $32.00 per square foot per annum, and the
remainder of the rentable area is at the lease rate of $26.00 per
square foot per annum. Mr. Oliphant explained the basis for the
two tier lease rate.
Finance Director Coleman presented a memo containing an
analysis of a purchase versus lease for the proposed City Hall
annex. The purchase method contemplates 5.5% interest on a $26
million bond issued for thirty years. The annex project, coupled
with the Community Center, SOS program and arterial streets
program utilizes the remaining revenue capacity of the City.
Director Coleman recommended that new projects should be
postponed until additional revenue capacity is realized.
VI. ADJOURNMENT
There being no further business, the meeting adjourned at 7:11 p.m.
APPROVED THE DAY OF SEPTEMBER 2008.
Nancy Backus, Chair
Danielle Daskam, City Clerk
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