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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 Page 1 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 Page 2 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 Page 3 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 Page 4