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.
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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.
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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.
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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.
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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
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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.
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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.
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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
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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
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Nancy us, Chair --
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