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.
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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
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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
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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.
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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
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