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Home My WebLink AboutITEM III-D CITY OF FINANCE COMMITTEE BU-RN WASHINGTON NOVEMBER 15, 2010 6:00 PM, CITY HALL ANNEX CONFERENCE ROOM 1 MINUTES I. CALL TO ORDER Vice Chair Lynn Norman 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. Vice Chair Norman and Member John Partridge were present. Chair Nancy Backus was excused. Present during the meeting were Mayor Peter B. Lewis, City Attorney Daniel B. Heid, Chief of Police Bob Lee, Finance Director Shelley Coleman, Planning and Development Director Kevin Snyder, Human Resources and Property/Risk Management Director Brenda Heineman, Risk Manager Rob Roscoe, and City Clerk Danielle Daskam. Wayne Osborne was also present. II. CONSENT ITEMS A. Approval of Minutes 1. Minutes of the November 1, 2010 Finance Committee meeting. Member Partridge moved and Vice Chair Norman seconded to approve the November 1, 2010 minutes. MOTION CARRIED UNANIMOUSLY. 2-0. B. Vouchers 1. Claims F4.9.5 Claims check numbers 399564 through 399931 in the amount of $4,905,513.93 and dated November 15, 2010. 2. Payroll F4.9.2 Pagel Finance Committee Minutes November 15, 2010 Payroll check numbers 530150 to 530254 in the amount of $787,482.30 and electronic deposit transmissions in the amount of $1,120,502.47 for a grand total of $1,907,984.77 for the pay period covering October 28, 2010 to November 10, 2010. Committee members reviewed the vouchers. Member Partridge moved and Vice Chair Norman seconded to approve the vouchers. MOTION CARRIED UNANIMOUSLY. 2-0. C. Contract Administration 1. Facilities Project Number CP0809 04.4.11 CP0809 City Council approve Final Pay Applications #6 and #7 to Sierra Construction, Inc., in the amount of ($45,527), release retainage and accept construction of Project No. CP0809, City Hall Annex Tenant Improvement. Director Heineman explained that the final pay estimates will close out Project Number CP0809, the City Hall Annex Tenant Improvements. There was brief discussion regarding the calculation of the net final estimate. Member Partridge moved and Vice Chair Norman seconded to approve Final Pay Applications 6 and 7 and accept construction of Project No. CP0809. MOTION CARRIED UNANIMOUSLY. 2-0. III. ORDINANCES AND RESOLUTIONS A. Ordinances 1. Ordinance No. 6333 F3.23 An Ordinance of the City Council of the City of Auburn, Washington, authorizing the levy of regular property taxes by the City of Auburn for collection in 2011 Page 2 Finance Committee Minutes November 15, 2010 Director Coleman stated that Ordinance No. 6333 sets the 2011 property tax levy at 101 % of the prior year's levy. The regular property tax levy for 2011 represents an increase of $142,395 in property taxes collected in 2010. In response to a question from Member Partridge, Mayor Lewis stated that over half of the General Fund budget is comprised of salaries and benefits. The City has no control over increased costs in benefits and other expenses associated with a collective bargaining agreement, except by lowering the number of employees. Member Partridge moved and Vice Chair Norman seconded to approve Ordinance No. 6333 and forward to the full. Council. MOTION CARRIED UNANIMOUSLY. 2-0. B. Resolutions 1. Resolution No. 4653 A3.16.6 A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor and City Clerk to execute an amendment to the Service Agreement between the City of Auburn and Future Visions and Karen Parker Director Heineman stated that the City has contracted with Future Visions since 2004 to provide intensive outpatient treatment as part of the City's alternatives to incarceration program. The contract fee has been unchanged since 2004. Future Visions is requesting a slight increase in fees beginning in 2011. The provider is located in Auburn. Member Partridge moved and Vice Chair Norman seconded to approve Resolution No. 4653 and forward to the full Council. MOTION CARRIED UNANIMOUSLY. 2-0. 2. Resolution No. 4654 A3.3.11 A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor and City Clerk to execute Page 3 Finance Committee Minutes November 15, 2010 a Second Amendment to the Lease Agreement between the City of Auburn and Central Puget Sound Regional Transit Authority Director Heineman explained that Resolution No. 4654 authorizes the sale of 138 City parking spaces at the Sound Transit garage back to Sound Transit for a sum of $1.3 million. Member Partridge moved and Vice Chair Norman seconded to approve Resolution No. 4654 and forward to the full Council. MOTION CARRIED UNANIMOUSLY. 2-0. 3. Resolution No. 4656 A4.1.7 A Resolution of the City Council of the City of Auburn, Washington, designating service credit for participating City Councilmembers in the Washington State Public Employee Retirement System (PERS) Resolution No. 4656 designates service credit for Councilmember participation in the Washington State Public Employee Retirement System (PERS). Effective January 1, 2010 or such other time as a Councilmember thereafter elects to participate, Councilmembers shall receive service credit of one-quarter (1/4) credit per month of work. The minimum PERS designation is one-quarter credit for less than 70 hours worked during one month. The choice of whether a Councilmember participates in PERS belongs to the individual Councilmember. Member Partridge moved and Vice Chair Norman seconded to approve Resolution No. 4656 and forward to the full Council. MOTION CARRIED UNANIMOUSLY. 2-0. IV. DISCUSSION ITEMS A. Monthly Financial Report Committee members reviewed the September Monthly Financial Report. Page 4 Finance Committee Minutes November 15, 2010 B. Ordinance No. 6338 An Ordinance of the City Council of the City of Auburn, Washington, amending Ordinance No. 6215, the 2009-2010 Biennial Budget Ordinance as amended by Ordinance Nos. 6226, 6246, 6278, 6285, 6299, 6313 and Ordinance No. 6323 authorizing amendment to the City of Auburn 2009-2010 Budget as set forth in Schedule "A" Committee members reviewed Ordinance No. 6338 amending the 2009-2010 Biennial Budget. Director Coleman noted the amendment includes the close out of Fund 438, the Commercial Retail Fund. Approximately $750,000 will be transferred to the General Fund and then transferred back out to the Cumulative Reserve Fund. The budget amendment also includes adjustments to capital. C. Ordinance No. 6335 Utility Revenue Bonds and Preliminary Official Statement Director Coleman explained that Ordinance No. 6335 provides for the issuance of two series of utility system revenue bonds. A special Council meeting will be held November 29, 2010 to adopt the bond ordinance. The bonds are expected to sell on or around December 14, 2010. Director Coleman stated that the net interest rate for Build America Bonds is at approximately 3.2 percent. D. Washington Cities Insurance Authority (WCIA) Premium Assessments Risk Manager Roscoe reviewed a handout titled Auburn's 2011 WCIA Assessment. He noted that the City's WCIA assessment is primarily driven by Labor and Industries (L&I) worker hours. Mr. Roscoe explained that an actuary first determines how much money WCIA needs for 2011 inclusive of losses, operating budget and takes into consideration investment income on reserves. For 2011, $27.5 million was the amount approved by the WCIA Executive Board. The actuary then allocates the $27.5 million between five actuarial groups (cities grouped into five different actuarial groups). Auburn is in Group IV which was allocated $13.7 million. The actuary next calculates the percentage each city must fund to collect the $13.7 Page 5 Finance Committee Minutes November 15, 2010 million. The actuary primarily reviews each city's five year loss experience (2005-2009 for the year 2011) and calculates a rate per worker hour. Auburn's assessment for 2011 is $917,397. For assessment purposes, each city's losses are capped to $100,000 per occurrence so one claim cannot adversely skew the allocation. Auburn's decrease in assessment was due to a better loss history and less worker hours. Mr. Roscoe briefly reviewed two charts showing the City's loss ratio and costs per worker hour. E. Resolution No. 4655 01.7.1 A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor and City Clerk to execute a Jail Facility Lease Agreement between the City of Auburn and the South Correctional Entity (SCORE) City Attorney Heid stated that the jail facility lease provides for the lease of the City's jail facility to SCORE beginning January 1, 2011. The City will be obtaining jail services from SCORE beginning next year. The City of Renton will be executing a similar lease agreement with SCORE for the Renton jail facility. V. ADJOURNMENT There being no further business to come before the Committee, the meeting adjourned at 6:45 p.m. APPROVED THE DAY OF DECEMBER 2010. Nancy Backus, Chair Danielle Daskam, City Clerk Page 6