HomeMy WebLinkAbout11-19-2001 CITY OF AUBURN
FINANCE COMMITTEE
November19,2001
MINUTES
I. CALL TO ORDER
Chair Jeanne Barber called the meeting to order at 6:30 PM in the Council
Work Area located in the Mayor's office. Members present included:
Chair Jeanne Barber and Member Stacey Brothers. Vice Chair Pete Lewis
was excused. Councilmember Rich Wagner arrived at 6:51 PM to serve
as the third committee member. Others present during the meeting
included: Mayor Charles Booth, Finance Director Shelley Coleman,
Human Resources Director Brenda Heineman, Public Works Director
Christine Engler, and City Clerk Danielle Daskam. Guests present
included Bill Peloza and Rich White (of Boeing). The meeting was tape
recorded.
II. APPROVAL OF MINUTES
A. Minutes of the November 5, 2001 Finance Committee meeting.
Member Brothers moved and Chair Barber seconded to approve
the November 5, 2001 Finance Committee minutes.
MOTION CARRIED UNANIMOUSLY. 2-0.
B. Correction to October 15, 2001 minutes to reflect correct payroll
period:
"Payroll check numbers 264892 to 265058 in the amount of
$553,703.47 and electronic deposit transmissions in the amount of
$739,271.84 for a grand total of $1,292,975.31 for the pay period
covering September 1327, 2001 to Soptombor 26 October 10,
2001.
Member Brothers moved and Chair Barber seconded to approve
the correction to the October 15, 2001 Finance Committee minutes.
MOTION CARRIED UNANIMOUSLY. 2-0.
Finance Committee Minutes
for November 19, 2001
Page 2
III. CONSENT ITEMS
A. Vouchers
1. Claims
F4.9.5
Claims check numbers 305618 through 306218 in the
amount of $2,979,270.58 and dated November 19, 2001
and wire transfer in the amount of $506,698.81.
2. Payroll
F4.9.2
Payroll check numbers 265222 to 265382 in the amount of
$506,574.80 and electronic deposit transmissions in the
amount of $726,906.57 for a grand total of $1,230,481.37 for
the pay period covering November 1, 2001 to November 15,
2001.
Member Brothers moved and Chair Barber seconded to
approve the consent items.
MOTION CARRIED UNANIMOUSLY. 2-0.
IV. ORDINANCES AND RESOLUTIONS
A. Ordinance No. 5602
A4.1.1
An Ordinance of the City Council of the City of Auburn,
Washington, announcing its intention to award the contract for
shod-term disability insurance for Driver, Sales and Warehouse
Union Local 117 (Finance Clerical Employees) and unaffiliated city
employees, and long-term disability insurance for unaffiliated city
employees to the Standard Insurance Company, through Superior
Insurance.
Human Resources Director Heineman presented Ordinance No.
5602. The ordinance authorizes the City to award the contract for
short and long-term disability insurance to the Standard Insurance
Company. The contract replaces the provider for short-term
disability insurance and provides for a new long-term disability
Finance Committee Minutes
for November 19, 2001
Page 3
insurance benefit for unaffiliated employees at a net annual cost of
approximately $13,000.
Member Brothers moved and Chair Barber seconded to
recommend City Council adopt Ordinance No. 5602.
MOTION CARRIED UNANIMOUSLY. 2-0.
B. Ordinance No. 5609
A3.11.2.2
An Ordinance of the City Council of the City of Auburn,
Washington, announcing its intention to include a number of new
provisions in the City's deferred compensation plan document,
adopted under Ordinance No. 3644, as amended, to be rewritten or
amended and approved no later than December 31, 2002.
Human Resources Director presented Ordinance No. 5609. The
ordinance outlines the City's intent to modify the City's deferred
compensation program to comply with changes in the law.
Member Brothers moved and Chair Barber seconded to
recommend City Council adopt Ordinance No. 5609.
MOTION CARRIED UNANIMOUSLY. 2-0.
V. DISCUSSION ITEMS
A. GASB 34
Finance Director Coleman updated the Committee on
implementation of GASB (Governmental Accounting Standards
Board) 34 accounting standards. Ms. Coleman presented a memo
from the Association of Washington Cities (AWC) dated October 2,
2001 regarding GASB 34. According to the AWC memo, GASB 34
sets new reporting requirements for the annual financial report
which the City must implement in 2002 for reporting in 2003 to
avoid "qualified opinions" or "findings" from the state auditor on the
City's annual financial report. Ms. Coleman pointed out that
GASB's schedule for implementation is one year later. The state
auditor's office is requiring early implementation to coordinate with
some larger cities that have already implemented GASB 34.
Finance Committee Minutes
for November 19, 2001
Page 4
Finance Director Coleman discussed the impact of implementing
GASB 34 on the Finance Department. One component of GASB
34 is infrastructure inventory and cost and whether to utilize
depreciation or a modified approach. Infrastructure includes
streets, sidewalks, curbs and gutters, street lighting, parking lots,
sewers, storm drains, and water lines. Infrastructure funded from
an enterprise fund has already been capitalized; however, projects,
such as streets and parks, funded by the General Fund have not.
Mayor Booth suggested creating a position for the purpose of
conducting the infrastructure inventory. Public Works Director
Engler noted that the 2002 proposed arterial street budget includes
funding for an asset management program to ascertain basic
streetscape information and identify infrastructure value. Finance
Director Coleman agreed that additional help will be needed to
implement GASB 34, and suggested it may be more efficient to
delay implementation until 2003. The estimated cost to implement
the accounting side is $150,000 to $200,000. Cost considerations
also need to be given to the infrastructure inventory.
(Councilmember Rich Wagner joined the Committee at this time.)
In response to a question from Member Wagner, Ms. Coleman
advised that early implementation of GASB 34 standards will not
affect the City's bond rating.
Finance Director Coleman will present new information on GASB
34 implementation as soon as it is available.
B. Safety/Risk Manager
Human Resources Director Heineman advised that presently the
City shares a safety officer position with the City of Puyallup. The
City of Puyallup has cancelled the contract with the City of Auburn
as they plan to make their safety officer position full time. Ms.
Heineman proposed adding a program improvement to the 2002
preliminary budget that would change the City of Auburn safety
officer position from a contract expense to a full time position. The
position would monitor workers compensation claims and assist
with risk management responsibilities. The net cost of the program
improvement is $26,800 in 2002.
Finance Committee Minutes
for November 19, 2001
Page 5
Finance Director Coleman recommended including the program
improvement in the 2002 Final Budget document. The Committee
concurred.
C. Public Defender Contract
Human Resources Director Heineman proposed increasing the
public defense contract compensation due to a large increase in
caseload. The $144,000 fiat compensation rate for 2001 was
based on 1,600 cases. The public defense caseload will exceed
2,000 by the end of the year. Director Heineman proposed
amending the contract to increase the compensation in 2002 to
$159,000. There was no objection from the Committee.
VI. ADJOURNMENT
There being no further business to come before the Committee, the
meeting adjourned at 7:10 PM.
Approved the ..-~){~ day of December, 2001.
~~n~e Barber, Chair Damelie Daskam, City Clerk
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