HomeMy WebLinkAbout05-03-2010FINANCE COMMITTEE
WASHINGTON
MAY 3, 2010
6:00 PM, CITY HALL ANNEX
CONFERENCE ROOM 2
MINUTES
I. CALL TO ORDER
Chair Nancy Backus called the meeting to order at 6:00 p.m. in
Conference Room No. 2 located on the second floor of the City Hall
Annex located at One East Main Street in Auburn. Chair Backus and
Member John Partridge were present. Vice Chair Lynn Norman was
excused. Present during the meeting were Mayor Peter B. Lewis, City
Attorney Daniel B. Heid, Finance Director Shelley Coleman, Public Works
Director Dennis Dowdy, Information Services Director Lorrie Rempher,
Acting Planning and Development Director Kevin Snyder, Planning
Manager Elizabeth Chamberlain, Employee Relations/Compensation
Manager John Fletcher, and Deputy City Clerk Cathy Richardson.
Members of the audience included Wayne Osborne.
II. CONSENT ITEMS
A. Approval of Minutes
1. Minutes of the April 19, 2010 Finance Committee
meeting.
2. Minutes of the April 27, 2010 special Finance Committee
meeting.
Member Partridge moved to approve the April 19, 2010 and
April 27, 2010 minutes. Chair Backus concurred.
MOTION CARRIED UNANIMOUSLY. 2-0.
B. Vouchers
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Finance Committee Minutes Mav 3, 2010
1. Claims
F4.9.5 .
Claims check numbers 394300 through 394701 in the
amount of $2,053,691.60 and dated May 3, 2010.
2. Payroll
F4.9.2
Payroll check numbers 528815 to 528914 in the amount of
$316,551.84 and electronic deposit transmissions in the
amount of $1,131,192.68 for a grand total of $1,447,744.52
for the pay period covering April 15, 2010 to April 28, 2010.
Committee members reviewed the vouchers and briefly
discussed voucher numbers 394308, 394309, 394346,
394347, 394350, 394386, 394431, 394586, and 394673.
Member Partridge moved to approve the vouchers. Chair
Backus concurred.
MOTION CARRIED UNANIMOUSLY. 2-0.
C. Contract Administration
1. Parks Project Number CP0607
05.2 CP0607
City Council approve Contract No. 08.01.115 for Project
N.umber CP0607, Les Gove Park Expansion - Activity
Center and award the contract to Christensen, Inc., in the
amount of $2,896,2000 (not including Washington State
sales tax).
Committee members briefly discussed funding dedications
and potential partnering for Project No. CP0607.
Member Partridge moved to approve and forward the
contract administration item to the full Council. Chair
Backus concurred.
MOTION CARRIED UNANIMOUSLY. 2-0.
ORDINANCES AND RESOLUTIONS
A. Ordinances
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Finance Committee Minutes Mav 3, 2010
1. Ordinance No. 6305
F2.2.22
An Ordinance of the City of Auburn, Washington, relating to
contracting indebtedness; providing for the issuance of four
series of limited tax general obligation bonds of the City in
the aggregate principal amount of $31,990,000, for general
City purposes to provide funds with which to (i) pay a portion
of the costs to purchase additional office space near City
Hall, to be known as the City Hall Annex, and associated
property interests, equipment and appurtenances, (ii) carry
out a current refunding of all of the City's outstanding
Limited Tax General Obligation Bonds, 1998 and to pay the
administrative costs of such refunding, (iii) pay for certain
downtown infrastructure improvements in the City's
revitalization area, and (iv) pay costs of issuance of the
bonds; fixing the date, form, maturities, interest rates, terms
and covenants of the bonds; establishing a bond redemption
fund, a project fund and a project account; and approving
the sale and providing for the delivery of the bonds to
Seattle-Northwest Securities Corporation of Seattle,
Washington
Revised Ordinance No. 6305 was distributed prior to the
Finance Committee meeting.
Director Coleman distributed a summary of bond pricing
results and reviewed financing goals, interest rates, and the
City's credit rating.
Committee members reviewed Ordinance No. 6305 and
discussed costs related to issuance of the bonds, dedicated
Real Estate Excise Tax (REET) funds, and infrastructure
improvements.
Director Coleman stated that by purchasing the property the
City will save approximately $385,000 per year for a thirty
years period.
Member Partridge moved to approve and forward Ordinance
No. 6305 to the full Council. Chair Backus concurred.
MOTION CARRIED UNANIMOUSLY. 2-0.
B. Resolutions
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Finance Committee Minutes Mav 3, 2010
1. Resolution No. 4593
F4.3
A Resolution of the City Council of the City of Auburn,
Washington, amending the City of Auburn Fee Schedule, to
adjust for Information Services and GIS fees
Director Rempher distributed revised Resolution No. 4593.
Due to changes in technology related to GIS data, staff
recommends revising related fees to a flat rate to reflect
current costs and which is consistent with fees charged by
other municipalities.
Chair Backus inquired regarding collection of sales tax for
only certain items.
Discussion followed regarding collection of fees versus sale
of products, which are taxable items.
Member Partridge moved to approve and forward Resolution
No. 4593 to the full Council. Chair Backus concurred.
MOTION CARRIED UNANIMOUSLY. 2-0.
2. Resolution No. 4594
04.4.1, 04.9.1 CP1002
A Resolution of the City of Auburn, Washington, authorizing
the Mayor to execute the financial assistance award
between the City of Auburn (the City) and the U.S.
Department of Commerce, Economic Development
Administration (the EDA) approving EDA funds for the
design and construction of improvements for the South
Division Street Promenade Project
Manager Chamberlain reported that the City received a
Notice of Investment Award granted to the City by the EDA
for $3,000,000. Resolution No. 4594 provides for
acceptance of the grant award. EDA is funding 38% of the
project costs.
Member Partridge moved to approve and forward Resolution
No. 4594 to the full Council. Chair Backus concurred.
MOTION CARRIED UNANIMOUSLY. 2-0.
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Finance Committee Minutes Mav 3, 2010
IV. DISCUSSION ITEMS
A. Resolution No. 4595
04.9.1 C201A
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the Mayor to execute a Local Agency Supplemental
Agreement between the City of Auburn (the City) and the
Washington State Department of Transportation (the State) relating
to Project No. C201A, M Street SE Grade Separation
Director powdy reported that staff is ready to move forward with the
final design of the M Street SE Grade Separation project, which is
currently at approximately 50%. The funds will allow the City to
complete the design and prepare to go out to bid on the project
next year. There are other grants promised by the State once
construction of the project begins. Staff anticipates proposing a
mid-year budget adjustment to cover approximately a$2.2 million
allocation of City funds to perForm the acquisition of all right-of-way
needed for the project, which will allow right-of-way certification by
the State.
In response to questions by Chair Backus, Director powdy stated
that the railroad is obligated to fund 5% of total budget costs of the
project.
Mayor Lewis pointed out that the Ports of Seattle and Tacoma will
also be contributing towards the project. The City has received a
series of federal grants to move this project along. This is the first
FAST Corridor project within the State of Washington, which was
championed by Senator Patty Murray. Mayor Lewis reviewed the
funding mechanisms required in order to complete this project.
Discussion followed regarding funding sources including REET 2,
traffic impact fees and re-allocations of funds.
Director powdy pointed out that the City must move forward with
the right-of-way acquisition phase in order to retain the State's
commitment of funding of approximately $6 million.
B. Resolution No. 4596
04.11
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the Mayor and City Clerk to execute an Emergency
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Finance Committee Minutes Mav 3, 2010
Water System Intertie Agreement between the City of Auburn and
the City of Bonney Lake
Director powdy reported that negotiations with the City of Bonney
Lake have been ongoing for several months. Negotiations were
very complicated due to the need for the City of Bonney Lake to
open their intertie with the City of Tacoma in order to meet City of
Auburn demands. The City of Bonney Lake then incurs additional
substantial lab fees and personnel costs to monitor the intertie and
manage their system. When the intertie is opened they must
perform daily observations to insure that their system works when
the interties are open.
Director powdy stated that City of Auburn Well #6 is down and
Well #1 was down for over a year and has just recently begun
production again. There is no assurance that Well #1 will continue
to produce through the summer months. In order to be prepared
for this year's peak months, staff renegotiated the contract with the
City of Bonney Lake so that the City of Auburn will have prolonged
use of the intertie, if needed, rather than just seven days. The
renegotiated agreement provides for specific costs related to
prolonged use of the intertie.
C. Animal Care and Control Update
Director Heineman distributed a chart depicting estimated costs to
King County and gave a brief history of King County animal control
services. Director Heineman spoke regarding King County's intent
to increase fees to participating cities for animal control services
related to the number of services received by each city. She also
spoke regarding the lack of other animal control providers with
sufficient capacity to handle City of Auburn's needs. Director
Heineman displayed a chart depicting estimated costs to King
County for animal control services over the next 2'h years. Most
cities currently served by King County Animal Control have
indicated that they will stay with King County for the next 2'/2 years.
The cities of SeaTac, Kent, Covington, Pacific, Algona, Black
Diamond, and Maple Valley have indicated an interest in beginning
dialogue on establishing a sub-regional model. King County has
offered to be a part of those discussions. The King County
contract will terminate on June 30, 2010.
Director Heineman reviewed the estimated costs which include
enhanced services for a full time animal control officer. As the area
currently covered by the officer will increase from approximately 30
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Finance Committee Minutes Mav 3, 2010
square miles to approximately 300 square miles, another 20 hours
for a part time animal control officer has been included in an effort
to retain the level of service now received. Staff believes that costs
can be reduced significantly by improving the number of pet owners
licensing their pets which at present time is approximately only
18%. Director Heineman reviewed the benefits of pet licensing to
pet owners and also to participating cities. She also reviewed
partnering with King County on their comprehensive marketing plan
in an effort to increase licensed pets within the City of Auburn to aid
in cost recovery.
Member Partridge spoke in opposition to the King County model.
Member Partridge also spoke regarding his contact with one
veterinary hospital in Auburn and expressed concerns that all such
entities should be contacted.
Director Heineman spoke regarding the uniqueness of animal
sheltering versus animal hospitals and the size of facility needed to
accommodate the number of animals in Auburn currently being
sheltered by King County. An advisory board comprised of entities
such as veterinaries, business owners selling pets, humane society
operators, and interested citizens would need to be formed in an
effort to explore all alternatives. Director Heineman also spoke
regarding timeline restrictions placed on participating cities by King
County.
Discussion followed regarding methods used by staff to determine
whether facilities such as veterinary offices and hospitals currently
located within the City of Auburn could accommodate the City's
animal care and control needs.
Mayor Lewis stated that staff has explored the six options available
to the City at this time. He also expressed his displeasure with the
King County model, but feels the City of Auburn does not have
another option at this time nor would an option be available within
the next six months to meet King County's deadline. Staff will
continue to diligently explore alternatives to the King County model.
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Finance Committee Minutes Mav 3, 2010
V. ADJOURNMENT
There being no further business to come before the Committee, the
meeting adjourned at 7:15 p.m.
APPROVED THE DAY OF MAY 2010.
t n n (.u" ~C~r-L
Nancy 1~ c{ us, Chair Cathy Ric (a dson, Deputy City Clerk
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