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HomeMy WebLinkAboutITEM III-Dw* A TY OF FINANCE COMMITTEE WASHINGTON September 15, 2008 MINUTES 1. 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, Vice Chair Sue Singer and Member Bill Peloza were present. Present during the meeting were Mayor Peter B. Lewis, Finance Director Shelley Coleman, Financial Planning Manger Karen Jester, City Attorney Daniel B. Heid, Information Services Director Lorrie Rempher, Environmental Protection Manager Kelly McLain Aardal and City Clerk Danielle Daskam. II. APPROVAL OF MINUTES A. Minutes of the September 2, 2008 Finance Committee meeting. Vice Chair Singer moved and Member Peloza seconded to approve the September 2, 2008 minutes. MOTION CARRIED. 3-0. III. CONSENT ITEMS A. Vouchers 1. Claims F4.9.5 Claims check numbers 378215 through 378600 in the amount of $3,233,569.93 and dated September 15, 2008. 2. Payroll F4.9.2 Payroll check numbers 524416 to 524553 in the amount of $841,175.96 and electronic deposit transmissions in the amount of $1,147,687.34 for a grand total of $1,988,863.30 for the pay period covering August 28, 2008 to September 10, 2008. Page 1 Finance Committee Minutes September 15, 2008 Committee members reviewed the consent items and briefly discussed vouchers 378216, 378228, 378347, 378357, 378371, 378387, 378471 and 378562. Vice Chair Singer moved and Member Peloza seconded to approve the consent items. MOTION CARRIED. 3-0. IV. ORDINANCES AND RESOLUTIONS A. Ordinances 1. Ordinance No. 6201 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 Nos. 6086, 6092, 6103, 6119, 6124, 6127, 6128, 6132, 6133, 6144, 6145, 6164, 6168, 6179 and Ordinance No. 6180 authorizing amendment to the City of Auburn 2007-2008 Budget as set forth in Schedule "A" Ordinance No. 6201 was reviewed by the Committee at the September 2, 2008 meeting. Committee members briefly reviewed the amendments in revenues and expenditures. Vice Chair Singer moved and Member Peloza seconded to approve Ordinance No. 6201. MOTION CARRIED. 3-0. V. DISCUSSION ITEMS A. 2009-2010 Biennial Budgets F3.22 1. Legal Committee members reviewed the Legal Department's proposed budget and discussed items related to domestic violence prevention and legal advertising. 2. Information Services Page 2 Finance Committee Minutes September 15, 2008 Committee members reviewed the proposed Information Services and Multimedia biennial budgets and briefly reviewed software and hardware upgrades and maintenance as well as other equipment costs and multimedia publishing costs. Vice Chair Singer requested that the next Finance Committee meeting agenda include an update on sales tax receipts. B. Resolution No. 4398 05.1.2, 05.2 A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor and City Clerk to execute an agreement between the City of Auburn and the lowest qualified bidder for Contract Number 08-21, Project Number C412130, Auburn Bird Viewing Tower Resolution No. 4398 would authorize the Mayor to execute a contract with the lowest qualified bidder for Project C412BO for construction of the Auburn Bird Viewing Tower. The resolution was reviewed by the Planning and Community Development Committee. In response to questions from Committee members, Environmental Protection Manager McLain Aardal advised that the birding tower structure consists of mixed materials. The main posts are telephone poles manufactured locally, the handrails are steel, stairways and decking are constructed of composites, and the roofing is green steel similar to the Transit Station. The budget for the project is $235,000 which includes engineering and design, construction and contingencies. C. Ordinance No. 6204 F4.3, 04.11.2, 04.8.3 An Ordinance of the City Council of the City of Auburn, Washington, amending Auburn City Code Sections 13.06.360 and 13.48.100 pertaining to utility rates Finance Director Coleman explained that in reviewing the proposed utility budgets, it was discovered that the net revenue in the utilities was not sufficient to meet the bonding requirements in relation to the debt service coverage ratio of 1.25. Director Coleman proposed extending the same rate increase already in place for the sewer utility to the water and storm utilities. The rate increase does not address the capital project costs for the utilities. Mayor Lewis Page 3 Finance Committee Minutes September 15, 2008 advised that the utility rate study will be completed by the second quarter of next year. Vice Chair Singer inquired regarding reducing the costs of operation. Finance Director Coleman reported that the Public Works Committee reviewed the entire operating budget for possible budget reductions. Director Coleman stated that several factors have affected the net revenues of the utilities. The primary factor is the loss of the surcharge on utility customers in the annexed areas. Mayor Lewis added that the utility fund balances were drawn down due to major projects that had to be completed. Vice Chair Singer expressed concern with implementing the same level of increase for three different utilities. Mayor Lewis stated that the proposed rate increases are sufficient to meet the existing bonding requirements; more accurate rates will be known once the rate study is complete. Councilmember Peloza reflected concern regarding the 22% rate increase of the water and storm water utility rates over the proposed rate period. In addition, it was requested that a "White Paper" for the Council be prepared to reflect all the reasons for the proposed rate increases. D. Resolution No. 4399 F5.4.2, 04.4.9.2 A Resolution of the City Council of the City of Auburn, Washington, authorizing the Auburn City Council to accept grant funds in the amount of Two Million Four Hundred Fifty-eight Thousand, Four Hundred Sixty-four Dollars ($2,458,464) from the U.S. Department of Transportation, Federal Aviation Administration to construct a taxiway, including taxiway edge lights (Phase 3); rehabilitate medium intensity runway lights (MIRL) runway 16/34 (Phase 1) and authorizing the execution-of the grant agreement therefore Finance Director Coleman authorizes the Mayor to accept grant funds from the Federal Aviation Administration to construct a new taxiway and taxiway lights. Page 4 Finance Committee Minutes September 15, 2008 VI. ADJOURNMENT There being no further business, the meeting adjourned at 7:18 p.m. APPROVED THE DAY OF OCTOBER 2008. Nancy Backus, Chair 1:\clerk\finance\fca\AGENDA Danielle Daskam, City Clerk Page 5