HomeMy WebLinkAbout05-02-2011
Finance Committee
: crnroF_ IIAay 2, 2011 - 6•00 PIIA
` Annex Room 1
wASN 1NMINUTES
I. CALL TO ORDER
Chair Backus called the meeting to order at 6:00 p.m: in Conference Room 1 located on the
second floor of the City Hall Annex located at One East Main Street in Auburn.
A. Roll Call
' Chair Backus, Vice Chair Lynn Norman and Member Rich" Wagnerwere present. Also
present during the meeting were Mayor Peter B. Lewis, Cify Attorney Daniel B. Heid,
Finance Director Shelley Coleman, Public Works Director Dennis Dowdy, and City Clerk
Danielle Daskam. Wayne Osborne was also present.
B. Announcements
There was no announcement.
C. . : Agenda Modifications
There was no.changeto the agenda. .
II. CONSENT AGENDA
All matters listed on fhe.Consent Agenda are considered by the City Council to be routine and
will be enacted by one motion in the form listed.
A. April 18, 2011 Minutes .
Vice Chair Norman moved and Member Wagner seconded to approve the April 18,
2011 minutes.
MOTION CARRIED UNANIMOUSLY. 3-0.
, B. Claims Vouchers (Coleman)
Claims check numbers 403668 through 404005 in the amounf of $2,521,619.67 and
three wire transfers in the amount of $217,488:37 and dated May 2, 2011.
C. Payroll Vouchers (Coleman)
, Payroll check numbers 531231 to 531316 in the amount of $299,594.82 and electronic
deposit fransmissions in the amou,nt of $1,114,098.09 for a grand total of $1,413,692.91
for the pay period covering April 14, 2011 to April 27, 2011.
Committee members reviewed the vouchers and briefly discussed claims voucher
numbers 403788, 403803, 403852; 403947, 403830, and 403981.
Vice Chair Norman moved and Member Wagner seconded to approve the claims and
payroll vouchers.
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MOTION CARRIED UNANIMOUSLY. 3-0.
III. DISCUSSION ITEMS
A. Resolution No. 4706 (Dowdy) .
A Resolution of the City Council of the City of Auburn, Washington, authorizing the
Mayor #o negotiate and execute an agreement with Puget Sound Energy, Inc for the
purpose of relocating power facilities in advance of construction of the A Street NW
Extension(A/B Corridor) (C207A)Project
Public Works Director powdy explained that Resolution No. 4706 authorizes the Mayor
to negotiate and execute an agreement with Puget Sound Energy for the relocation of
power facilities in advance: of consfruetion of the A Street NW Extension (A/B Corridor) .
Project. The relocation is necessary to construct the roadway improvements.
Director powdy stated that the cosf ofthe relocation is approximately $112,000.
The resolution was reviewed by the Public Works Committee earlier.
B. Resolution No. 4707 (Dowdy)
A Resolution of the City Council ofithe City of Auburn, Washington, authorizing the
Mayor to execute a Local Agency Supplemental Agreement between the City ofi Auburn
and Washington State Department of Transportation relating to Project No. C207A, A
Street NVV Extension
Public Works Director powdyexplained that Resolution No. 4707 authorizes the
execution of a Local Agency Supplemental Agreement (No. 3) with the Washington
State Department of Transportation relating to the funding for Project No. C207A, the A
Street NW Extension Project. The supplemental agreement essentially reallocates
grant funding that was not used for right-of-way acquisition to the construction phase of
the project.
Resolution No. 4707 was reviewed by the Public Worlcs Committee earlier.
C: Fire Relief and Pension Fund and Other Post Employment Benefits
Finance Director Coleman presented the Committee with information on the status of
the Fire Relief and Pension Fund and other post employment benefits, primarily
consisting of LEOFF 1 actiVe and retired medical and long term care benefits.
Finance Director Coleman reported that an actuariat study is performed on the Fire
Relief and Pension Fund every finro years. As of January 1, 2011, the fund has $2J8
' million in assets plus $609,000, present value, in future fire insurance premiums,
bringing total assets to $3.389 million. As of January 1; 2011, there is a$272,000
unfunded actuarial accrued liability; however, the liability will be met by the tax revenue
from the fire insurance premium tax.
Committee members discussed the obligation and impact of the posf employment
benefits for LEOFF 1. In 2008, the City had an actuarial study performed to determine
the Annual ReGuired Contribution (ARC). In 2010, the ARC was $1,712,223. Director
Coleman explained that the City can account for the obligation by either setting up an
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irrevocable trust or pay obligations as they occur but accrue the difference between the
ARC and the actual amount paid as a liability.
Finance Director Coleman recommended thaf, rather tFian establish an irrevocable trust,
the City consider an internal restriction of#unds to 6e made available to pay the costs in
future years. Director Coleman suggested a policy to set aside in the Insurance Fund, the difference between what is budgeted for post employrrient benefits and the amount
paid each year. Director Coleman stated that in 2010 approximately $300,000 in
unexpended funds thaf were, budgeted for post employment` benefits rolled back in to •
the fund balance. She suggested that through an upcoming budget amendment, the
funds be allocated to the Insurance Fund and set aside for fufure years fo meef the
LEOFF liability. Committee members agreed.
Member Wagner suggested: that Finance Director Coleman present the information on
posf employment benefits to the Auburn LEOFF Board.
IV. ADJOURNIVIENT
There being no further business to come before the Committee, the meeting adjourned at
6:30 p.m.
APPROVED THIS DAY OF MAY, 2011.
~ Nancy k.s, Chair . nielle Daskam, City Clerk
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