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Home My WebLink About02-22-2011 * CITY OF * FINANCE COMMITTEE * i WASHINGTON FEBRUARY 22, 2011 6:00 PM, CIT1( 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 locafed af One East. Main .Street in Auburn. Chair Backus, Vce Chair Norman and Member Rich Wagner were present. Present during the meeting were Mayor Peter B. Lewis, Councilmember John Partridge, - City Att6mey.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. IL 'CONSENT BTEMS A. Approval of Minutes 1. IlAinutes 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. Claoms 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 IWinutes Februarv 22. 2011 2. Payroll F4.9.2 Payroll check numbers 530791 to 530882 in the amount of . $810,453.85 and electronic deposit #ransmissions . 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. Com.mittee 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 IRESOLUTIONS - 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 Commitbee AAinutes Februarv 22, 2011 A Resolution of the City Council of the City of Aubum, Washington, authorizing the Mayor and City Clerk to execute an Interlocal Agreement between the City of Aubum 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 Attomey Heid agreed to draft a termination clause that will be included in the intedocal 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 Intedocal Agreement with the Cify of Pacific to design and construcf Project No. C507A/C507B, Aubum / Pacific Trail Committee members reviewed the Resolution and amendment to the interlocal agreement that was entered into in 2007 between the cities of Aubum and Pacific to complete the Aubum/Pacific Trail. C. December 2010 FinanciaY Report Page 3 Finance Committee Minutes - Februarv 22, 2011 Committee members reviewed the December 2010 Financial Report. The. report highlights City revenues 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 anticipafes in excess ofi $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 fifly percent of the cross-sector subsidy over a finro year period. 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 senrice 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 rriembers expressed opposition #o removing the subsidy at this time. Page 4 Finance Commitbee Minutes Februarv 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 Cify to issue a Request for..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 2012, 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. A cost 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. Comm'ittee 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 Februarv 22, 2011 Committee members reviewed the leak adjustment appeal , submitted by David Warwick. Finance Director Coleman ezplained 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 Sencices 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 adjoumed at 7:03 p.m. APPROVED THE DAY OF MARCH 2O11. ~ ~ Nancy ck s, Chair Danielle Daskam, City Clerk Page 6