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Home My WebLink AboutITEM III-D CITY OF • _ FINANCE COMMITTEE r ,rte . WASHINGTON FEBRUARY 22, 2011 6:00 PM, CITY HALL ANNEX CONFERENCE ROOM 1 MINUTES I. CALL TO ORDER Chair Nancy Backus called the meeting to order at 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 Backus, Vice Chair Norman and Member Rich Wagner were present. Present during the meeting were Mayor Peter B. Lewis, Councilmember John Partridge, City Attorney Daniel B. Heid, Risk Manager Rob Roscoe, Finance Director Shelley Coleman, Planning and Development Director Kevin Snyder, Information Services Director Lorrie Rempher, Public Works Director Dennis Dowdy, Utilities and Accounting Services Manager Mark Gregg, Utilities Engineer Dan Repp, Solid Waste and Recycling Coordinator Joan Nelson, Project Engineer Leah Dunsdon, and City Clerk Danielle Daskam. II. CONSENT ITEMS A. Approval of Minutes 1. Minutes of the February 7, 2011 Finance Committee meeting. Vice Chair Norman moved and Member Wagner seconded to approve the February 7, 2011 minutes. MOTION CARRIED UNANIMOUSLY. 3-0. B. Vouchers 1. Claims F4.9.5 Claims check numbers 401914 through 402243 in the amount of $3,329,757.14 and three wire transfers in the amount of $729,271.13 and dated February 22, 2011. Page 1 Finance Committee Minutes February 22, 2011 2. Payroll F4.9.2 Payroll check numbers 530791 to 530882 in the amount of $810,453.85 and electronic deposit transmissions, in the amount of $1,110,835.55 for a grand total of $1,921,289.40 for the pay period covering February 3, 2011 to February 16, 2011. Committee members reviewed the vouchers and briefly discussed voucher numbers 402021, 402029, 402182, 402189, 402216, 402223, 402037, 402057. Vice Chair Norman moved and Member Wagner seconded to approve the vouchers. MOTION CARRIED UNANIMOUSLY. 3-0. III. ORDINANCES AND RESOLUTIONS A. Ordinances 1. Ordinance No. 6351 F3.23 An Ordinance of the City Council of the City of Auburn, Washington, amending Ordinance No. 6339, the 2011-2012 Biennial Budget Ordinance and authorizing amendment to the City of Auburn 2011-2012 Budget as set forth in Schedule "A" The Committee reviewed Ordinance No. 6351 on February 7, 2011. No changes to the ordinance have occurred since that time. Vice Chair Norman moved and Member Wagner seconded to approve Ordinance No. 6351 and forward the ordinance to the full Council. MOTION CARRIED UNANIMOUSLY. 3-0. B. Resolutions 1. Resolution No. 4683 A3.16.12 Page 2 Finance Committee Minutes February 22, 2011 A Resolution of the City Council of the City of Auburn, Washington, authorizing. the'Mayor and City Clerk to execute an.Interlocal Agreement between the City of Auburn and the City of Algona for,.information services technology. The Committee. reviewed Resolution No. 4683 on February 7, 2010. The interlocal. agreement provides for cost recovery for services provided to the City of Algona. Member Wagner suggested adding a termination clause to the agreement: City Attorney Heid agreed to draft a termination clause that will be included in the interlocal agreement presented.to Council.later this evening. Vice Chair Norman moved and Member Wagner seconded to approve. Resolution No:4683 with the inclusion of a termination , clause 'and forward : the resolution to the full Council. MOTION CARRIED UNANIMOUSLY. 3-0. IV. DISCUSSION ITEMS A. Joint Parking and Development Agreement and. Option to Purchase with King County Rural Library District dba King County Library System: Risk Manager.Roscoe presented a ,Joint Parking and Development Agreement' and. Option to Purchase between the King- County Library System and -the City _of Auburn. Committee members reviewed the agreement and the parking layout. B. Resolution No. 4687 04.9.1 C507A/C507B : - A Resolution of the City Council of the City of Auburn, Washington, authorizing .the Mayor and City Clerk to execute Amendment No. 1 to the :Interlocal Agreement with the City of Pacific to design and construct Project No. C507A/C507B, Auburn /-Pacific Trail Committee members. reviewed the 'Resolution and amendment to the interlocal agreementthat;was entered into in 2007 between the cities of Auburn and'Pacific to complete -the Auburn/Pacific Trail. C. December 2010 Financial Report, Page 3 i . Finance Committee Minutes February 22, 2011 Committee members reviewed the December 2010 Financial Report. The report highlights Cityrevenues and expenditures and. is based on financial data available as of February 3, 2011 and does not include accrual entries. Finance Director Coleman stated that she anticipates in excess of $3.5 million' in ending fund balance. D. Solid Waste Rates Solid Waste and Recycling Coordinator Nelson presented the rate scenarios for 2011 and 2012. Without a rate increase, the Solid Waste . Fund will not cover the City's costs (i.e. hauler and administration, costs). Mayor Lewis stated that Administration is recommending one rate scenario while,the Municipal Services Committee is recommending a different rate scenario to remove approximately fifty percent of the cross-sector subsidy over a two yearperiod. Administration does not recommend a subsidy removal. The Administration recommendation is for a 12.6 percent rate increase overall. The $75,000' subsidy removal would result in a 16.2 percent increase in rates in 2011. Coordinator Nelson stated that there is some level of subsidization of residential rates in all.surrounding jurisdictions. Mayor Lewis stated the recommendation to not remove the subsidy at this, time is due -,to the current economy and the impact the subsidy removal would have on residential customers and the fact that 'subsidization is a regular practice among municipalities. Additionally, 'the subsidy removal would- not effect enough of the business class in order to justify' the subsidy removal and the impact on residential customers. Coordinator Nelson noted that the City's current rates are 9.1 percent less than surrounding jurisdictions. The City's estimated average cost per yard at Auburn service levels is one percent more than surrounding jurisdictions.. The City's estimated average cost per haul at -Auburn service levels is 15.6 percent less than surrounding jurisdictions. Committee members expressed opposition to removing the subsidy at this time. Page 4 1 Finance Committee Minutes February 22, 2011 Coordinator Nelson noted. Administration is also requesting that effective 2013, rate increases will be implemented pursuant to the contract Consumer Price Index. E. Solid Waste Contract Extension Finance Director Coleman presented a proposal to extend the existing solid waste contract with Waste Management to December 31, 2017. Extending the contract through 2017'will. allow the City to issue a' Request forL,Proposals for solid .waste. services in 2018 that will encompass the entire City,- including several annexation areas. The existing contract expires December 31, 2012. The extended contract will provide the following services not available. in the current contract: new, compressed natural gas (CNG) fleet by 20121 public CNG fueling station in 2012, new wheeled garbage -carts for. all, 20 -gallon and 32 gallon customers, recycling drop-off site for Auburn customers, improved outreach systems; individual. recycling carts for mobile home parks, and weekly yard waste collection: year-round. F. City Council Chambers Floor Plan Committee members reviewed the proposed Council Chambers floor plan remodel. Committee members recommended more of a curve for. the City, Council dais. Acost estimate-will be developed based on the design. G. Auburn versus Glacier Water - Finance Director- Coleman reported that in. 2009 the Police Department entered into an oral contract with Glacier Water to provide off-duty security services. Glacier Water paid for their initial: billing but have not paid since. Services,were discontinued in October. Glacier Water.is delinquent on approximately $37,000 in security services. The City filed a lawsuit and Glacier Water subsequently offered to settle for $25,000; paying,'$15,000 immediately and two $5,000 payments in thirty: day intervals. Committee members agreed to accept Glacier Water's offer. H. Leak Adjustment Appeal F4.5.2 City Council approve an additional water utility adjustment to account number 56724, for David . Warwick, in the amount of $212.04. Page 5 Finance Committee Minutes February-22, 2011 Committee members reviewed the leak adjustment appeal submitted by David Warwick. Finance Director Coleman explained that when -Mr. Warwick was notified of the leak, he repaired it immediately. 1. Public Works Consultant Agreement Number AG-C-401 A3.16.9, 04.8.1 C524A City Council grant . permission to enter into Consultant and Technology Services. Agreement No. AG-C-401 with Technical Systems,,Inc. for Technology. Improvements for Project No. C524A, SCADA System Improvements. Committee members reviewed the request to enter into Consultant and Technology Services. Agreement No. AG-C-401 with Technical Systems for SCADA System Improvements. Member Wagner reported that the Public Works Committee `reviewed the contract in depth. Finance Director Coleman reported the project will be funded with bond proceeds. V. ADJOURNMENT There being no further business to come before the Committee, the meeting: adjourned at 7:03 p.m. APPROVED THE DAY OF MARCH 2011. Nancy Backus, Chair Danielle Daskam, City Clerk Page 6 a 3y3 !3