HomeMy WebLinkAbout07-17-2006
FINANCE COMMITTEE
JULY 17, 2006
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 in Auburn. Committee members present were: Chair Backus, Vice
Chair Lynn Norman and Member Roger Thordarson. Also present during
the meeting were Mayor Peter B. Lewis, Finance Director Shelley
Coleman, Human Resources and Risk Management Director Brenda
Heineman, Economic Development Planner AI Hicks, City Attorney Daniel
B. Heid, and City Clerk Danielle Daskam. Hugh Spitzer of Foster Pepper
PLLC and Annette Somers of Seattle-Northwest Securities Corporation
were also present.
II. APPROVAL OF MINUTES
A. Minutes of the July 3, 2006 Finance Committee meeting.
Vice Chair Norman moved and Member Thordarson seconded to
approve the July 3, 2006 minutes.
MOTION CARRIED. 3-0.
III. CONSENT ITEMS
A. Vouchers
1. Claims
F4.9.5
Claims check numbers 353594 through 354004 in the
amount of $2,071,585.44 and a wire transfer in the amount
of $1,379,843.06 and dated July 17, 2006.
2. Payroll
F4.9.2
Payroll check numbers 516550 to 516704 in the amount of
$746,682.19 and electronic deposit transmissions in the
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Finance Committee Minutes
July 17. 2006
amount of $1,063,103.71 for a grand total of $1,809,785.90
for the pay period covering June 29, 2006 to July 12, 2006.
Committee members reviewed the consent items and briefly
discussed claims vouchers 353601, 353632, 353733,
353901, 353597, and 353810.
Vice Chair Norman moved and Member Thordarson
seconded to approve the consent items.
MOTION CARRIED. 3-0.
IV. ORDINANCES AND RESOLUTIONS
A. Resolution No. 4057
A3.13.4
A Resolution of the City Council of the City of Auburn, Washington,
regarding tenant relocation costs for the City Hall Annex, expansion
of the Downtown Town Center Plaza, and improvements to City of
Auburn downtown parking facilities
Economic Development Planner AI Hick presented Resolution No.
4057. The City of Auburn is acquiring property in the downtown for
the purpose of implementing a Town Center Plaza. RCW 8.26.035
through 115 require the payment of relocation costs for businesses
displaced by projects such as the Town Center Plaza, but only if
federal funds are used in the acquisition of the property or the
project constructed as part of the acquisition. The Town Center
Project is not receiving any federal funding, and RCW 8.26.010
enables the City to "opt out" of paying relocation costs. The City is
required to take official action to "opt out" of paying relocation
costs. Resolution No. 4057 provides that the City elects not to pay
relocation costs in connection with its acquisition of property for a
City Hall Annex, an expansion of the Downtown Town Center and
improvements to downtown parking facilities.
Vice Chair Norman moved and Member Thordarson seconded to
approve Resolution No. 4057.
MOTION CARRIED UNANIMOUSLY. 3-0.
V. DISCUSSION ITEMS
A. Resolution No. 4058
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Finance Committee Minutes
July 17. 2006
F5.2.7
A Resolution of the City Council of the City of Auburn, Washington,
authorizing an amendment to the Washington State Department of
Ecology 2006-2007 Ecology Coordinated Prevention Grant
Program and authorizing the acceptance of additional grant funds
in the amount of Fourteen Thousand Seven Hundred Twenty
Seven Dollars ($14,727.00)
Committee members reviewed Resolution No. 4058. The
Washington State Department of Ecology (DOE) has offered
additional grant funds for the Coordinated Prevention Grant
Program to be used towards the City's business recycling program.
DOE is offering $14,727 in additional grant funding. The original
grant was for $28,037.
B. Utility Billing Adjustment
City Council approve water utility adjustment to Account Number
23717, Andrew Griffin, in the amount of $1 ,627.94.
Finance Director Coleman reported that the utility billing adjustment
was presented to the Public Works Committee at their last meeting.
The customer had a significant leak from an abandoned line
attached to his meter. The customer was not aware of the
abandoned line, which had at one time serviced a building located
behind his property. The customer is appealing the leak
adjustment policy in order to obtain an adjustment in excess of the
$500 allowed in the policy. The Public Works Committee
recommended approval of the leak adjustment.
C. Bond Ordinance
Finance Director Coleman presented a draft bond ordinance for the
Committee's review. The ordinances provides for issuance of
limited tax general obligation bonds to provide funds for the
construction of a golf course clubhouse and make improvements at
the municipal cemetery. Hugh Spitzer of Foster Pepper is the bond
attorney representing the City, and Annette Somers with Seattle-
Northwest Securities is the underwriter. Mr. Spitzer pointed out
that the ordinance provides for both taxable and nontaxable bonds.
Mr. Somers reviewed the preliminary bond planning. The bond
issue provides for $3,350,000 of (tax exempt) general obligation
bonds for improvements at the golf course and construction of a
mausoleum at the cemetery; as well as $1,890,000 of (taxable)
general obligation bonds for development of a restaurant and
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Finance Committee Minutes
July 17. 2006
related facilities at the golf course clubhouse. The interest rate for
the tax-exempt bonds is estimated at 4.99%, and the interest rate
for the taxable bonds is estimated at 6.46%. Bond maturities have
been scheduled so that the taxable bonds will be amortized earlier
than the tax-exempt bonds. The bonds will be priced on August 7,
2006 and the funds will be available on August 22, 2006.
D. Lakeland Sewer Billings
Finance Director Coleman advised the Committee that in late 2005
the City discovered that not all residences in the Lakeland area
were receiving sewer billings. Upon an audit of the accounts, it
was discovered that 178 residences and multi-family complexes
were not receiving City storm, sanitary sewer and Metro sewer
billings.
The City was operating under informal agreements with other water
purveyors to provide new water meter installation information on a
monthly basis in order to establish new sewer service billing
information. The Finance Department has established a new
business process and is proposing an amendment to city code for
cases where water service is provided by another water purveyor.
The code will allow sewer billings to begin when the sewer permit is
final rather than when water is available. The information for new
sewer services will come from the City permitting system, and the
Finance Department will no longer rely on information from outside
agencies to establish utility accounts.
Customers have been notified of the error and the amount of their
backbill. Customers have the opportunity to pay the backbill by
credit card or establish other payment arrangements.
VI. ADJOURNMENT
There being no further business to come before the Committee, the
meeting adjourned at 7:08 p.m.
APPROVED THEff'- DAY OF AUGUST 2006
Danielle Daskam, City Clerk
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