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
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