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Home My WebLink About11-07-2005 Aij&BttN :,fIJ' .. WASHINGTON I FINANCE COMMITTEE NOVEMBER 7, 2005 MINUTES 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, Auburn, Washington. Committee members present were: Chair Backus, Vice Chair Lynn Norman, and Member Roger Thordarson. Also present during the meeting were Mayor Peter B. Lewis; Information Services Director Lorrie Rempher; City Attorney Daniel B. Heid; Finance Director Shelley Coleman; Human Resources and Risk Management Director Brenda Heineman, Community Development Administrator David Osaki; Jamelle Garcia of Airport Management Group, and City Clerk Danielle Daskam. II. APPROVAL OF MINUTES A. Minutes of the October 17,2005 Finance Committee meeting. Vice Chair Norman moved and Member Thordarson seconded to approve the October 17,2005 minutes. MOTION CARRIED UNANIMOUSLY. 3-0. III. CONSENT ITEMS A. Vouchers 1. Claims F4.9.5 Claims check numbers 345959 through 346518 in the amount of $2,464,904.40 and dated November 7, 2005. 2. Payroll F4.9.2 Payroll check numbers 513976 to 514119 in the amount of $319,877.80 and electronic deposit transmissions in the amount of $1,029,307.79 for a grand total of $1,349,185.59 Page 1 Finance Committee Minutes November 7.2005 for the pay period covering October 13, 2005 to November 7,2005. Committee members reviewed the consent items and briefly discussed claims vouchers 345959, 346334, 346337 and 346134. Vice Chair Norman moved and Member Thordarson seconded to approve the consent items. MOTION CARRIED UNANIMOUSLY. 3-0. IV. ORDINANCES AND RESOLUTIONS A. Ordinance No. 5950 F4.3 An Ordinance of the City of Auburn, Washington, relating to school impact fees amending Auburn City Code Section 19.02.060 entitled "Annual Council Review" Community Development Administrator David Osaki presented Ordinance No. 5950 relating to school impact fees. Recently, the Planning and Community Development Committee reviewed a request from Dieringer School District to adjust their school impact fees and also reviewed the overall approach to adjusting school impact fees. In the past, the school districts have submitted their capital facilities plans as part of the City's Comprehensive Plan amendment process without explicitly requesting an adjustment in the school impact fees. The proposed ordinance amends the city code to provide for a requirement for the school districts to submit a written request for a school impact fee adjustment (if it is an increase) at the time the school district submits its capital facilities plan as part of the Comprehensive Plan amendment process. Mr. Osaki distributed copies of the current school impact fee ordinance. He reported that Councilmember Wagner had questioned whether the proposed ordinance would conflict with Auburn City Code Section 19.02.120(C). Section 19.02.120(C) provides that beginning January 1, 2006 and for every January thereafter, the Auburn School District impact fees shall be in accordance with the net fee obligation identified in the most recent capital facilities plan. Mr. Osaki reported that there has been discussion in other Committee meetings regarding the desire to set Page 2 Finance Committee Minutes November 7.2005 specific school impact fee amounts rather than referring to the adopted capital facilities plan. Committee members suggested revising the proposed ordinance to amend Auburn City Code Section 19.02.120 to delete paragraph C. Vice Chair Norman moved and Member Thordarson seconded to recommend approval of Ordinance No. 5950 as revised. MOTION CARRIED UNANIMOUSLY. 3-0. B. Resolution No. 3931 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 Seattle Mental Health Human Resources and Risk Management Director Heineman presented Resolution No. 3931. A revised copy of the contract was presented for Committee review. The Committee previously discussed the contract at the September 19th and October 3rd meetings, and the revisions to the contract corrected minor scrivener's errors. Director Heineman explained that the proposed program provides for expedited mental health treatment services for defendants of the Auburn Municipal Court as an alternative to incarceration. Treatment of the mental health issue, as opposed to incarceration, is less expensive for the City and better for the individual. Vice Chair Norman moved and Member Thordarson seconded to recommend approval of Resolution No. 3931 as revised. MOTION CARRIED UNANIMOUSLY. 3-0. C. Resolution No. 3933 A Resolution of the City Council of the City of Auburn, Washington, declaring certain items of property as surplus and authorizing their disposal A revised Resolution No. 3933 was distributed to the Committee. Vice Chair Norman moved and Member Thordarson seconded to recommend approval of Resolution No. 3933 as revised. MOTION CARRIED UNANIMOUSLY. 3-0. Page 3 Finance Committee Minutes November 7.2005 D. Resolution No. 3935 A5.3.33 A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor and City Clerk to execute an Agreement with the South County Area Transportation Board Resolution No. 3935 was added via agenda modification. Mayor Lewis explained that the Resolution approves a revised agreement for continuation of the South County Area Transportation Board through 2008. The revisions are minor and include a provision to allow representatives of Chambers of Commerce attend the meetings as nonvoting members. Additionally, dues for member cities have been modified. Vice Chair Norman moved and Member Thordarson seconded to recommend approval of Resolution No. 3935. MOTION CARRIED UNANIMOUSLY. 3-0. V. DISCUSSION ITEMS A. Quarterly Report Committee members reviewed and briefly discussed the quarterly revenue and expenditure reports and investment portfolio for the quarter ending September 30, 2005. B. Draft Property Tax Ordinance No. 5956 An Ordinance of the City Council of the City of Auburn, Washington, authorizing the levy of regular property taxes by the City of Auburn for collection in 2006 Finance Director Coleman presented the draft property tax ordinance. The estimated levy rate (with the lid lift) is $2.84 per $1,000 of assessed valuation. Director Coleman presented a comparison of the property tax levy with and without the levy lid lift. Ordinance No. 5956 will be presented at the November 21, 2005 Committee meeting for recommendation to the full Council. C. Auburn Airport Fuel Pricing Mr. Jamelle Garcia of Airport Management Group LLC and manager of the Auburn Municipal Airport presented Committee members with information on the airport's fuel pricing. Recently, the City received a letter expressing the concerns of a few airport Page 4 Finance Committee Minutes November 7.2005 tenants regarding the price of fuel at the Auburn Municipal Airport. Mr. Garcia presented a worksheet to show how the fuel is priced. The calculations indicate that the fuel price is below the fully loaded cost of handling the fuel activities. Mr. Garcia also provided the Committee members with a letter from the airport's fuel vendor Air BP providing some insight into the volatile pricing of the airport fuel. Air BP indicated that capacity and timing are the main issues surrounding the fuel price. Some airports have greater capacity or lower volume and can vary their purchases accordingly. During the fuel price spike, some fuel providers elected not to purchase and actually ran out of gas for a period of time while waiting for fuel prices to go down. Air BP has provided a freight rate breakdown and can advise dealers with the future week price move to assist Airport Management Group with their fuel ordering. Mr. Garcia also presented the Committee with copies of the fuel pricing as published on AirNav.com. The Auburn Airport's fuel prices are mid-range. However, Mr. Garcia noted that the fuel prices published on AirNav.com are voluntary and not always updated. Chair Backus inquired regarding the cost of an additional fuel tank. Mr. Garcia estimated the cost of an installed tank would be $100,000. He did not recommend investing in another general aviation fuel tank. VI. ADJOURNMENT There being no further business to come before the Committee, the meeting adjourned at 7:17 p.m. APPROVED THE d /lYDAY OF NOVEMBER 2005. ~Ist NancYl C ("" /\' ^~ )lu~II~~:U4~ Danlelle Daskam, City Clerk 1:\cler1<\finance\fca\2005fcM11-07 Page 5