HomeMy WebLinkAboutITEM III-D
CITY OF
FINANCE COMMITTEE
WAS H I NGT0N
OCTOBER 18, 2010
6:00 PM, CITY HALL ANNEX
CONFERENCE ROOM '9
MIIVUTES
I. CALL TO ORDER
Chair Nancy Backus called the meeting to order 6:00 p.m. in Conference
Room No. 1 located on the second floor of the City Hall Annex located at
One East Main Street in Auburn. Chair Baekus, Vice Chair Lynn Norman
and Member John Partridge were present. Present during the meeting
, were.Mayor Peter B. Lewis, City Attorney Daniel B. Heid, Fin.ance Director
Shelley Coleman, Utilities and Accounting Services Manager Rhonda`
Ewing, Solid Waste and Recycling Coordinator Joan Nelson, Public
Works Director Dennis Dowdy, Sewer Utility Engineer Bob Elwell, and City
Clerk Danielle Daskam. Wayne Osborne was also present.
II. CONSENT ITEMS
A. Approval of Minutes
1. Minutes of the October 4, 2010 Finance Committee
meeting.
Vice Chair Norman moved and Member Partridge seconded
to approve the October 4, 2010 minutes.
MOTION CARRIED UNANIMOUSLY. 3-0.
B. Vouchers
1. Claims
F4.9.5 -
- Claims check numbers 398818 lhrough 399207 in the
amount of $4,868,526.96 and dated October 18, 2010.
2. Payroll
F4.9.2
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Finance Commiftee Minutes October 18, 2010 ,
Payroll check numbers 529942 to 530049 in the amount of
$86,271.30 and electronic deposit transmissions in the
amount of $1,,127,425:54 for a grand total of $1,992,696.84 '
for the pay period covering September 30, 2010 to October
13, 2010.
- Committee members reviewed the vouchers and briefly
discussed claims vouchers 398836, 398824, 398881, and
. 398938.
Vice Chair Norman moved antl Member Partridge seconded
_ to approve the claims and payroll vouchers. „
MOTION CARRIED UNANIMOUSLY. 2-0.
III. ORDINANCES AND RESOLUTIONS
A. Ordinances
There was no ordinance for Committee consideration.
B. Resolutions ,
There was no resolution for Committee consideration.
IV. DISCUSSION ITEMS
A. Ordinance No. 6331
04.6
An Ordinance of the City Council ofi the City of Auburn,
`Washington; amending Section 13,21::186 of the Auburn City Code
relating to sewer meters
Committee membecs reviewed Ocdinance No. 6331. Sewer Utility
Engineer Elwell explained that the current City Code provides foc
. the: use of sewer -meters. Staff recommends amending the
provisions to more effeetively manage use of the meters and
provide clear guidance to the utility customers. B. Resolution No. 4648
- 04.11
A Resolution of the City Council of the,City of Auburn, Washington,
authorizing the Mayor and the City Clerk to execute an Emergency
Water System Intertie Agreement befinreen the City of Auburn and
the C'ity of Tacoma
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Finance Committee Minutes October 18, 2010
Public Works Director powdy explained that Auburn and the City of .
Tacoma are constructing an intertie with Tacoma's Pipeline #5
located at B Street NW. Resolution No. 4648 provides for an
Emergency Intertie Agreement that will provide increased fire
protection and emergency water supply reliability during times of '
water shortage. It is intended that the intertie will be used for
wholesale service in the future. Staff are working on developing a
wholesale water agreement that incorporates the terms of an
agreement befinreen Auburn and Cascade Water Alliance.
C. Resolution No. 4649
04.11
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the Mayor and the City Clerk to execute an Emecgency
Water System intertie Agreement befinreen the City of Auburn and
the Lakehaven Ufility District
Committee member reviewed Resolution No. 4649. The City and
Lakehaven Utility District have modified their water systems to ,
allow Lakehaven Utility District the ability to provide emergency
water to the Auburn system. The intertie allows the City to improve
water system reliability and to meet fire fighting needs during .
periods of wafer.shortage (such as drought and equipment failure).
The new. intertie agreement addresses details for intertie operation,
notification requirements and compensation for water.
D. Solid Waste Rates
Finance Director Coleman presented inforrnation to the Committee
regarding the status of the Solid Waste Fund. Since 2007, Waste
Management collection fees to the City have increased a total of
7.8% and those costs have been subsidized by the Solid Waste
Fund balance and working capital and not passed on to the utility
customer. The current solid waste contract with Waste
Management expires December 31, 2012. Revenues haVe also
decreased due to the economy and it is anticipated that when the
economy recovers, only a minor revenue increase will be realized.
The rate model estimates a 2010 ending Fund Balance of
$672,755, excluding revenues from late penalties and fees which
total approximately $120,000. Without a customer rate increase,
the fund Balance will be eliminated within the next finro years.
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Finance Commiftee Minutes October 18, 2010
.
Director. Coleman proposed several options for rate increases.
Staff has recommended Option C which would provide a 12% rate
increase in 2011, 4% in 2012 and 4% in 2012.
Director Coleman recommended retaining working capital.equal to
one month's billing for solid waste collection or approximately
$800,000.
- The proposal has been presented to the Municipal Services
Commiftee and will be returned to the Municipal Services
Cornmittee for further study.
Member Partridge requested : a model where there is no
subsidization of any type of utility account.
E. August 2010 Monthly Financial Report
Commiftee members reviewed the August 2010 monthly financial
report.
V. ADJOURNMENT
There being no further business to come before the Committee, the
meeting adjourned at 6:42 p.m.
APPROVED THE DAY OF NOVEMBER 2010.
Nancy Backus, Chair Danielle Daskam, City Clerk
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