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HomeMy WebLinkAbout08-07-2006 FINANCE COMMITTEE WASHINGTON AUGUST 7, 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, 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, Finance Director Shelley Coleman, Information Services Director Lorrie Rempher, City Attorney Daniel B. Heid, Interim Planning, Building and Community Director David Osaki, Public Safety Chief Jim Kelly, Human Resources and Risk Management Director Brenda Heineman, Economic Development Manager Dave Baron, Employee Relations and Compensation Manager John Fletcher, Parks, Arts, and Recreation Director Daryl Faber, Contracted Project Manager Paul H. Berry, and Deputy City Clerk Cathy Richardson. II. APPROVAL OF MINUTES A. Minutes of the July 17, 2006 Finance Committee meeting. Vice Chair Norman moved and Member Thordarson seconded to approve the July 17, 2006 minutes. MOTION CARRIED UNANIMOUSLY. 3-0. III. CONSENT ITEMS A. Vouchers 1. Claims F4.9.5 Claims check numbers 354005 through 354512 in the amount of $3,025,282.64 and a wire transfer in the amount of $181,000.00 and dated August 7, 2006. Page 1 Finance Committee Minutes AUQust 7.2006 2. Payroll F4.9.2 Payroll check numbers 516705 to 516853 in the amount of $320,652.15 and electronic deposit transmissions in the amount of $1,146,347.58 for a grand total of $1,466,999.73 for the pay period covering August 13, 2006 to August 2, 2006. Committee members briefly reviewed claims and payroll vouchers. 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. 6039 F2.2 An Ordinance of the City of Auburn, Washington, relating to contracting indebtedness; providing for the issuance of $3,350,000 par value of Limited Tax General Obligation Bonds, Series 2006A of the City for general City purposes to provide funds with which to make cemetery improvements, certain other improvements to an existing public golf course and the related facilities, and to pay the costs of issuance of the series 2006A bonds; providing for the issuance of $1,890,000 par value of limited tax general obligation bonds, series 2006T (Taxable) of the City for general City purposes to provide funds with which to develop a restaurant and related facilities at the golf course clubhouse and to pay the costs of issuance of the Series 2006 T (Taxable) bonds; fixing the date, form, maturities, interest rates, terms and covenants of the bonds; establishing bond accounts and project funds related to each series of bonds; [providing for the purchase of bond insurance;] and approving the sale and providing for the deliver of the bonds to Seattle-Northwest Securities Corporation of Seattle, Washington Finance Director Shelley Coleman introduced Seattle-Northwest Securities Corporation Vice President Lindsay Sovde and Foster Pepper PLLC Attorney Alice Ostdiek. Page 2 Finance Committee Minutes AUQust7,2006 Ms. Sovde distributed documentation on bond pnclng results dated August 7, 2006. Ms. Sovde explained that they went into the market today with two series of bonds consisting of taxable (2006T) and tax- exempt (2006A) portions. The total bond issue was $5,160,000. Ms. Sovde detailed the bonds as follows: o 2006A - Taxable o Mature 2006 - 2015 o Interest rate - 5.67% o Purchased primarily by a bank in Texas o 2006T - Tax Exempt. o Mature 2015 - 2025 o Interest rate - 4.32% o Purchased by Washington Mutual Ms. Sovde reported that the average interest rate is 4.58%, which is very good for twenty-year debt. Ms. Sovde referred Committee Members to page four of the handout and reviewed market conditions and interest rate trends. The bonds were rated by Moody's who affirmed the City's A-1 credit rating and were very complimentary of the City's financial status. The bonds were insured by CIFG. The City will receive the bond funds on August 22,2006. Ms. Ostdiek distributed revised Ordinance No. 6039 which includes the updated pricing on the bonds and information related to insurance of the bonds. Ms. Ostdiek explained that Ordinance No. 6039 authorizes issuance of the bonds, approves the preliminary official statement, and approves execution of the contract with the bond insurer. Ms. Ostdiek reported that the ordinance is structured in terms of two series of bonds, taxable and tax-exempt, to accommodate the private uses involving the restaurant in the Golf Course Clubhouse. Chair Backus thanked Director Coleman, Ms. Sovde, and Ms. Ostdiek for their efforts related to the bond ordinance. Vice Chair Norman moved and Member Thordarson seconded to recommend approval of Ordinance No. 6039. MOTION CARRIED UNANIMOUSLY. 3-0. Page 3 Finance Committee Minutes AUQust 7, 2006 B. Resolution No. 4072 A1.2 A Resolution of the City Council of the City of Auburn, Washington, stating the City Council's support for King County's "Transit Now" initiative City Attorney Daniel B. Heid stated that Transit Now is an initiative being introduced by King County. Attorney Heid distributed a flyer on the Transit Now service improvements. Attorney Heid explained that Resolution No. 4072 proposes support of the Transit Now initiative. Because it is a political issue, it is appropriate that City Council allow public comment prior to consideration of Resolution No. 4072. Mayor Lewis noted that there is an agreement with Metro and King County Executive staff to provide a commuter shuttle from neighborhoods within the City of Auburn to its downtown area and to the Transit Station so as to correspond with rail services. The agreement also provides that the City has the option to pay for increased hours related to including mid-day shuttle service. It also provides for all day, hourly service on the 152 bus route to Seattle. City Attorney Heid pointed out that the transit initiative includes plans to make ride-sharing improvements such as van-pool and van-share provisions. Mayor Lewis commended the efforts of Member Thordarson for his many hours of work related to initiating shuttle service in downtown Auburn. Vice Chair Norman moved and Member Thordarson seconded to recommend approval of Resolution No. 4072. MOTION CARRIED UNANIMOUSLY. 3-0. C. Resolution No. 4073 A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor and City Clerk to execute a contract with Buxton Company for services related to the CommunitylD Project Committee Members reviewed Resolution No. 4073 and the presentation provided by Economic Development Manager Dave Baron at the July 31, 2006 Committee of the Whole meeting. Page 4 Finance Committee Minutes AUQust 7,2006 Vice Chair Norman inquired regarding Page 7, Fee for Services. Mr. Baron verified that fees referred to by Vice Chair Norman would only be charged at the hourly rate for special services specifically requested by the City. Vice Chair Norman moved and Member Thordarson seconded to recommend approval of Resolution No. 4073. MOTION CARRIED UNANIMOUSLY. 3-0. V. DISCUSSION ITEMS A. Resolution No. 4069 A3.16.9 A Resolution of the City Council of the City of Auburn, King County Washington, authorizing the execution of an agreement between the City of Auburn and AllianceOne Receivables Management, Inc., an AllianceOne company, to provide collection services for the Auburn Municipal Court Employee Relations and Compensation Manager John Fletcher reported that Resolution No. 4069 is an amendment to the agreement with AllianceOne to provide additional services such as Item 10.E, Monthly Payment Collection Services and Fees, for court collection. The City does not currently use this service, but may choose to do so in the future, depending on the number of outstanding uncollected debts currently collected by Renton Collections. The City receives the same amount of money that it would normally collect, however, AllianceOne receives slightly less, which is passed on to the defendant in an effort to encourage repayment B. Public Works Agreement No. AG-C-225 A3.16.6 City Council approve Amendment #1 to Agreement No. AG-C-225 between the City of Auburn and BCRA relating to annual on-call for architectural services. Human Resources and Risk Management Director Brenda Heineman reported that she recently began managing the Facilities Budget. Director Heineman estimated that approximately $50,000 Page 5 Finance Committee Minutes AUQust 7, 2006 was sufficient for architectural and engineering services. However, due to numerous renovations and facilities projects, Director Heineman requested approval of an increase in the budget for architectural and engineering services of $6,300. C. Fire Station 33 Funding and Alternatives within the RFPSA Chief of Public Safety Jim Kelly distributed a spreadsheet related to financial details regarding the proposed Regional Fire Protection Service Authority (RFA). Chief Kelly explained that the RFA Planning Committee is in the process of reviewing the proposed Station 33 to be located at 4910 "A" Street SE and related bonding Issues. Director Coleman reported that, if the proposed RFA chooses to go out for bonds, they have the ability to bond as follows: DUn-voted (Councilmatic) bonds for approximately $45,000,000 o Voted bonds for approximately $90,000,000 Director Coleman explained that the Councilmatic bonds are limited to twenty-year terms. Voted bonds can have a term of up to twenty-five years. Director Coleman referred to the spreadsheet distributed by Chief Kelly and reviewed the annual debt service over the twenty and twenty-five year terms. Committee members reviewed estimated costs related to construction of proposed Fire Station 33 with voted and un-voted bonds, the assessed value, and estimated levy revenue. Voted bonds must be approved by a super majority vote or 60%. Un-voted bonds should have an identified revenue source to service the debt, such as the fire benefit charge. D. Project Number CP0617 04.4.10 City Council grant permission to advertise for bids for Project No. CP0617, Mountain View Cemetery Mausoleum Building. See Item V.F for discussion on this item. E. Project Number C31 OAO 05.1.2 City Council grant permission to advertise for bids for Project No. C310AO, Veterans Memorial Park Building. Page 6 Finance Committee Minutes AUQust 7,2006 F. Project Number CP0327 04.4.7 City Council grant permission to advertise for bids for Project No. CP0327, Auburn Golf Course Clubhouse. See Item V.F for discussion on this item. Director Coleman introduced Contracted Project Manager Paul Berry to review Project Nos. CP0617, C310AO, and CP0327 under Items V.D, V.E, and V.F of these minutes. Mr. Berry stated that he retired from the City of Seattle after twenty- five years of service. Mr. Berry reviewed his background in municipal government and numerous projects that he managed for the City of Seattle. Mr. Berry reported that he is currently working on the following projects for the City of Auburn: o Mountain View Cemetery Mausoleum Building o Veterans Memorial Park Building o Auburn Golf Course Clubhouse o Fire State 33 Initial Design Mr. Berry reviewed the timelines for the Veterans Memorial Park building, which is estimated for completion by March 2007, and the Auburn Golf Course Clubhouse, which is estimated for completion by June 2007. Parks, Arts, and Recreation Director Daryl Faber pointed out that a temporary facility will be provided for the Vietnam Veterans Memorial Wall, which is scheduled to be in the City of Auburn at Veterans Memorial Park in November 2006. Discussion followed regarding a concessionaire for the clubhouse restaurant. Mr. Berry explained that the old clubhouse will remain in place or a temporary unit will be installed during construction of the new clubhouse in an effort to continue serving the public. Every effort will be made to avoid disruption of the golf course, clubhouse facility, and parking accommodations. Director Faber noted that construction should occur during the off- season so as to reduce the disruption of the golf course activities during revenue season. Page 7 Finance Committee Minutes AUQust 7,2006 G. Resolution No. 4070 A3.13.8 A Resolution of the City of Auburn, Washington providing for amendment to the City of Auburn Fee Schedule relating to implementation of Three Party Outside Utility Extension Agreements Interim Planning, Building and Community Director David Osaki reported that Resolution No. 4070 is an amendment to the City's fee schedule establishing a fee for three-party outside utility extension agreements. The base fee is $1,000 plus the City's actual costs in performing under the terms of the agreement to be negotiated. Staff time is variable depending on the acreage of the property, number of lots being created, and the complexity of the particular issue. H. Regional Fire Authority Mayor Lewis reported on a meeting today comprised of citizens from the cities of Auburn, Algona, and Pacific regarding formation of a Regional Fire Authority (RFA). Discussion included review of related costs, the fire benefit charge, and pros and cons to each city if a RFA is established. Mayor Lewis stated that, if a RFA is established, the average cost for residential units would be approximately $5.00 per month and up to $1,000 per month for commercial units. The commercial fee would have a marked positive impact on costs related to business insurance. Mayor Lewis outlined the options to each city reviewed at the meeting as follows: o Algona o No fire service provided by City of Auburn o No RFA and costs for service from City of Auburn increase to $486,000 per year (previously paid $250,000 per year) o Become a voting member of the RFA o Pacific o Paying more now for fire services than they would under an RFA Page 8 Finance Committee Minutes AUQust7,2006 o Attempt to develop a measure for a full time fire department would double property tax o Auburn o Establishing a RFA would cost $0-60 per year for residential units and would allow the City to keep the Fire Department's current level of services o Establishing a RFA would enable the City to hire additional police officers Mayor Lewis stated that he reported to the citizens group that, in the event an RFA is formed, the City of Auburn must have an agreement for the following: o Construction of a south-end fire station in Auburn o Credit for equipment and facilities provided by the City of Auburn, which equals approximately 90% between the three cities o 2007 funding level must remain the same VI. ADJOURNMENT There being no further business to come before the Committee, the meeting adjourned at 7: 19 p.m. Sot APPROVED THE d-I ~ DAY OF AUGUST 2006 ~N~~l ~ Nancy us, Chair -- {~u~ I: \clerk\fi nance\fca\2006fcm08-07 Page 9