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MINUTES
FINANCE COMMITTEE
FEBRUARY 16., 2010
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. Chair Backus, Vice Chair Lynn Norman and Member
John Partridge were present. Present during the meeting were Mayor
Peter B. Lewis, City Attorney Daniel B. Heid, Chief of Police Jim Kelly,
Finance Director Shelley Coleman, Risk Manager Rob Roscoe, and City
Clerk Danielle Daskam,
Members of the audience included Wayne Osborne and Jeff Oliphant.
II. CONSENT ITEMS
A. Approval of Minutes
1. Minutes of the February 1, 2010 Finance Committee
meeting.
V'i'ce Chair Norman moved and Member Partridge seconded
to approve the February 12010'
, minutes.
MOTION CARRIED UNANIMOUSLY. 3-O.,
B. Vouchers
1. Claims
F4,9,5
Claims check numbers 392317 through 392715 in the
amount of $1,49f,493.17, and a wire transfer in the amount
of $1,000.00, dated February 16, 2010.
2. Payroll
F4.9.2
Page 1
Finance Committee Minutes 0 February 16, 2010
Payroll check numbers 528319 to 528423 ion the amount of
IP $798,560.77 and electronic deposit transmissions in the
amount of $1,136,283.19 for a grand total of $1,934,843.96
for the pay period covering January 28, 2Q10 to February 10,
201 0.
Committee members reviewed
0
discussed voucher numbers
392447, 392516 and 392507.
the vouchers and briefly
392350, 392381, 392392,
Vice Chair Norman moved and Member Partridge seconded
to approve the vouchers.
MOTION CARRIED UNANIMOUSLY. 3-O.,
III. ORDINANCES AND RESOLUTIONS
A. Ordinances
1. Ordinance No. 6293
F2.14
An Ordinance of the City Council of the City of Auburn,
Washington, pledging the City's full fa'i'th and credit toward
the payment of its share of debt service on refunding bonds
to be issued by the Valley Communications Center
Development Authority and approving certain matters
related thereto I.
Committee members reviewed Ordinance No. G293. Auburn
is one of five cities that entered into an interlocal to form the
Valley Communications Center Development Authority to
prov'i'de police, fire and medical aid services communications
within the boundaries of the member cities. The ordinance
provides for the refunding of bonds issued in 2000 by Valley
Communications (ValleyCo for the ValleyCom dispatch
fac'il'ity. Due to the favorable bond market at this time, it
appears that the 2000 bands may be refunded at lower
interest rates and thereby provide a savings to the member
cities.
Vice Chair Norman moved and Member Partridge seconded
to approve and forward Ordinance No. 6293 to the full
Council.
Page 2
Finance Committee Minutes _ _ February 16, 2010
MOTION CARRIED UNANIMOUSLY., 3-0.
2. Ordinance No. 6294
F4,11
An Ordinance of the City Council of the City of Auburn,
Washington, amending Sections 3.04.600 of the Auburn City
Code relating to funds .1
Committee members reviewed Ordinance No. 6294. The
ordinance provides for increases i n some' change funds to
reduce the number of staff trips to the banking facility.
Vice Chair Norman moved and Member Partridge seconded
to approve and forward Ordinance No. 6294 to the full
Council.
MOTION CARRIED UNANIMOUSLY., 3-0,,
B. Resolutions
1. Resolution No. 4561
F6.7
A Resolution of the City Council
10
Washington, authorizing the City
of the City of Auburn,
of Auburn to impose a
sales and use tax as authorized by
credit against State sales and
annexations
RCW 82.14.415 as a
use tax, relating to
Committee members reviewed Resolution Na. 4561. The
41
resolution was reviewed at the February 1, 2010 Fiance
Committee. The resolution levies the .1% sales tax credit
against the state sales tax for annexation of the Lea Hill
area. The tax credit is available to the City for up to ten
years and is limited to the maximum of .1 % credit against
the state tax or the difference between the City's cost to
provide, maintain and operate municipal services for the
annexation areas and the general revenues that the City
receives from the annexation area during a given year. This
is the third year that the City has asked the State for the
sales tax credit.
Vice Chair Norman moved and Member Partridge seconded
IP
to approve and forward Resolution No. 4561 to the full
council.
Page 3
Finance Committee Minutes February 16-, 201Q
MOTION CARRIED UNANIMOUSLY. 3-0.
IV. DISCUSSION ITEMS
A. Resolution No. 4569
A Resolut*ion accepting a grant from the U.S. Department of
IP Justice in the amount of $43,417.00 for the purchase of
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police equipment
Committee members reviewed Resolution No. 4569.
Be Auburn Professional Plaza 0
Risk Manager Rob Roscoe presented a proposed
agreement between the City of Auburn and Auburn
Professional Plaza (APP). The agreement w'111 allow the City
to close the purchase of the City Annex office space eight
months earlier than the on ginal lease agreement. The
agreement also provides for the exchange of sixteen parking
stalls at the Mel's property for sixteen spaces in the hospital
parking garage condo. The agreement will give the City
ownership and title to the Mel's surface parking lot (120
parking spaces). With ownership and total fee interest, the
City will not be required to pay property tax for the Mel's lot.
APP will have development rights for the air space at the
Mel's lot. Should APP develop the air rights above Mel's lot,
APP is required to f ind replacement parking for those
spaces at Mel's lot. The City has agreed to provided APP
with the rights to lease additional parking (up to 145 spaces)
at the parking garage condo (APP currently has the lease
rights to 50 spaces at the parking garage condo). The
agreement also provides APP with the option to purchase
City condo unit 39a.
In response to questIP ions from Committee members
I&
regarding the exercise of the option to purchase the Annex
space, Finance Director Coleman stated that the monthly
lease payment for the Annex space is approximately
$137,000. If the City issues bonds to purchase the Annex
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space, the City will save approximately $200,000 annually
between the debt service payment and the lease payment.
An additional benefit of the purchase and band issuance is
that the debt service will be a fixed payment for the next
thirty years; the lease agreement provides for increases in
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Finance Committee Minutes February 16, 2010
the lease rates every five years. Additionally, if the City
purchases the Annex space, they can be converted to condo
space, and the City w'1'11 not be liable for property tax.
C. April Bond Issue
Finance Director Coleman distributed a February 16, 2010
memo regarding a proposed April bond issue. There are
five bond issues contemplated to provide funding for 1) the
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purchase of the Annex space currently being leased by the
City in the amount of $22,680,000; 2) funding the Local
Rev'italjzatian Funding component of the Promenade and
open spaces in the amount of $6,000,000; and 3} refunding
the 1998 General Obl'igat'ion bonds issued for the library in
the amount of $2,225,004. Total tentative band issuance is
$30,950,000. The five bond issues consist of Limited
General Obligation Bonds and Build America Bonds.
Finance Director Coleman reviewed the sources and uses of
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funds and the preliminary numbers for debt service. The
Annex bands will be funded with REET 1 revenue stream
and utility funds for the utilities that use a portion of the
building space,, The Promenade bonds w'111 be funded with
Local Revitalization funds of $250,000 annually, and the City
will match annual debt service with REET 2 funds. The $3
IP
million Economic Development grant w'111 be amortized as
matching funds.
V. ADJOURNMENT
There being no fu0 rther business to come before the Committee, the
meeting adjourned at 74.22 p.m.
APPROVED THE
Nancy Backus, Chair
DAY 4F MARCH 2010.
Dan'i'elle Daska , City Clerk
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