HomeMy WebLinkAbout08-15-2011 * Finance Committee
crrr oF_ -'�� • August 15, 2011 - 6:00 PM .
Annex Room 1
WASH I NGTON M�NUTES
I. CALL TO ORDER
Vice Ghair Lynn Norman called the meeting to order at 6:00 p.m. in Conference Room
1 located on the"second fioor ofthe City Hall Annex located at One East Main Street in
Aubum:
A. Roll Cali
Vice Chair Norman and Member Rich Wagner were present. Chair Nancy Backus
was excused. Also present were: Mayor Peter B. Lewis, City Attomey Daniel B.
Heid, Finance Director Sheliey Coleman, Information Services DirectorLorrie
Rempher; Planning and Development Directoc Kevin Snyder, Senior Planner
Hillary Taylor, Public Works Director Dennis Dowdy, Human Services and
Properly/Risk ManagemenYDirector Brenda Heineman, Risk Manager Rob
Roscoe, Employee RelaUons and Compensation Manager John Fletcher,
Financial Pianning Manager Martin Chaw,Largo Whales, and City Clerk Danielle
Daskam.
B. Announcements
There was no announcement.
C. Agenda Modifications
The discussion item relating to utility billing procedures was removed from the
agenda.
II. CONSENT.AGENDA
A. August 1, 2011 Minutes
Member Wagner moved and Vice Chair Norman seconded to approve the August
1, 2011 minutes.
MOTION CARRIED UNANIMOUSLY. 2-0.
B. Claims Vouchers (Coleman)
Claims check numbe.rs 406538 through 406908 in the amount of$4,224,447.61
and dated August 15, 2011.
C. Payroll Vouchers (Coleman)
Payroll check numbers 531926 to 532022 in the amount of $831,01521
and electronic deposit transmissions in tfie amount of $1,136,609.98 fora
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grand total of $1,96Z,625.19 for the pay period covering July 28, 2011 to
August 10, 2011.
Committee members reviewed the claims and payroll vouchers and briefly
discussed claims voucher numbers 406582, 406811, 406559, 406562, 406599,
and 406651.
Member Wagner moved and Vice Chair Norman seconded to approve the claims
and payroll vouchers.
MOTION CARRIED UNANIMOUSLY. 2-0.
I I I. ORDINANCES
A. There was no Ordinance forCommittee consideration.
IV. RESOLUTIONS
A. There was no Resolution for Committee consideration.
V. DISCUSSION ITEMS
A. 2012 WCIA Assessment Analysis (Heineman)
Human Resources and Property/Risk Management.Director Heineman and Risk
Manager Roscoe presented the Committee with an analysis of the City's 2012
Washington Cities Insurance Au4hority (WCIA) assessment for liability coverage.
Risk Manager Roscoe reported that Auliurn's assessment for 2012 will be
$820,470 down from the 2011 assessment of$887,950. Mr. Roscoe explained
4hat for 2012, WCIA ele.cted not to raise the rate from 2011; however, individual
rates will vary depending on the actuarial groups; there are five different actuarial
groups in the WCIA Pool, and Auburn is in group IV. WCIA is a risk sharing pool
and the membership voted that no individual member's assessment rate could
increase or decrease by more than fifteen percent in any given year.
Unfortunately for Auburn, there are four cities in the Group IV category whose
rates should have increased by more than fifty percent; therefore, Autiurn did not
realize as much as a savings because the remaining deficit had to be spread
among the remaining group N members. In comparison, the average group IV
member's individual assessment increased by 6.8%o while Auburn's rate
assessment decreased by 0:55%.
Additionally, Mr. Roscoe reported that Auburn's 10 year loss ratio is 65%. The
2012 rate is based on#he loss ratio for the five year period of 2006-2010.
Mr. Roscoe noted the decrease in,ctaims in the.planning and lancJ use area
and attributed the decrease in losses to the elimination of the Council's role in
quasi-judicial matters. Director Heineman aiso commented that the City's method
for responding to and managing potential and filed claims has reduced the City's
loss experience.
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B. Bad Debt Write-Off {Coleman)
Finance Directar Coleman presented outstanding utility customer accourrts in the
total amourrt of $45;182,77 that have been determined as uncollectible
and recommended the accounts be written off: The customer accounts are more
than six months old and fhe customer has either filed bankruptcy orthe accounts
are located on tribal land:
Mem6er 1Nagner reported that the PublicWorks Committee discussed the issue of
bad debt accounts on tribal land and will continue to work towards potential
solutions.
C. Ordinance No. 6369 (Snyder)
An Ordinance of'the City Council of the Gity.of'Auburn, Washington,
amending Chapters 18.04, 18.07, 18.31, 18.21 of the Aubum City Code for
the purpose of allowingthe:keeping of'chickens, minature goats, and
potbelly pigs as pets in some residential and commercial districts in the City
of Auburn
Senior Planner Hillary Taylor presented Ordinance No. 6369 which would amend
the city code to allow individuals to keep a variety of smail animais (such as
chickens, miniature gbats and potbelly pigs) as pets in the residential districts and
in some commercial disVict. The ordinance also references other city code
sections related to noise,nuisances, and slaughtering.
Member Wagner questioned whether the five yard setback is sufficient. Vice
Chair Norman stated thatthe fiveyard setback is the standard among other
cities. Senior Planner Taylor stated the references to the code sections relating
to noise, nuisances and slaughtering were included to emphasize remedies to any
complaints.
D. Ordinance No. 6370 (Coleman)
BudgetAmendment No. 4
Committee members reviewed Ordinance No.6370, which wili decrease the
2011-2012biennial budget, as amended, ta$273;392,387. The proposed
amendments include the addition of three new full time positions; correction of
revenue funding for tlie Wayfinding project in the Cocal Revitalization Fund,
adjusUng the City Hali Annex Debt funding,and reduce revenue and expenditures
forthe Golf Course.
E, Ordinance No. 6374 (Dowdy)
An Ordinance of the the City Goiuncil of the City of Auyburn; Washington,
amending Section 2.94:020 of the Aubum Ciry Code relating to the Citizen's
Committee for Transportatin, Transit and.Trails
Public Works Director powdy explained thaYthe proposed ordinance would
increase the membership on the Transportation;Transit and T�ails Oommittee
from seven members to nine members.
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F. Resolution 4729 - Fiber Consortium Inteclocal (Rempher)
AAesolution of the City Council of the City ofiAubum, Washington,
approving the formation of the Community Connectivity Consortium, a
Public Corporation, aufhorizing the Mayor and City Clerk to enterinto an
Interiocal Agreement estabiishing the Community Connectivity Consortium
between the Giry and otlier government agencies forthe construction and
management of fiber optic projects, and approving the charter of#he
Community Connectivity Consortium
Information Services Director Rempherexplained that the City'entered into a
Regional Ftier Consortium in 2009. Resolution No. 4729 represerrts a
reorganization to a public corporation and includes approval of a new interlocal
agreement establishing a governance board, joint ownership of future fiber
resources, better protecfion for ali members from legal liabilit�r, and other
provisions. DirectorRempherstated that the reorganization was needed to
provide a better framework for grant application ancl funding.
G. Resolution No. 4734 (Coleman)
Resolution No. 4734 - Airport Fees
Finance DirectorColeman reported the Airport AdVisory Board recommends
adding Sdditional fees for use of the airport. New fees are proposed forparking of
vehicles at the airport and use of airport designated areas by enthusiasts of line
controlled hobby aircraft.
H. Resolution No. 4737 (Dowdy)
A Resolution ofithe Gity Council of the City of Aubum, Washington,
authorizingthe Mayor to grant an easement to Puget Sound Energy for the
purpose of relocafing utilitiesfor the M Street SE Underpass Project
(C201 A)
Public Works Directorpowtly explained that an easement is required to allow
Puget Sound Energy to relocate its overhead lines for the M Street Underpass
Project. There is no cost to the City for the relocation of the utilities.
I. Resolution No. 4742 (Dowdy)
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the Mayor to accept a state grant from the Washington State
Department of Transportation for the Aubu.m Way South Corridor
Improvements, Dogwood Street SE to Fir Street SE
Public Works Director powdy explained that Resolution No. 4742 accepts a
$740,830 grarrt from the StatePedestrian and Bicycle Safety Program through
Washington State Department of Transportation for the Aubum Way Sauth
Corridor Improvements from Dogwood Street SE to FirStreet SE. Director powdy
pointed out that Resolution No. 4743, next on the agenda, accepts a$100,000
federal grant for the pedestrfan improvements associated with this project.
J. Resolution No. 4743 (Dowdy)
A Resolution of the City Council of the City of Auburn, Washington,
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authorizing the Mayor to accept a federal grant to be administered through
th'e VNashington State Department of Transportation for the Auburn Way
South Corridor Improvements, Dogwoo.d Street SE to Fir Street SE
See Item I, Resolution No. 4742, for discussion of Resolution No. 4743.
K. Resolution No. 4744{Dowdy)
A Resolution of the City of Co.uncil of Ciry of Auburn, Washington,
Authorizing the Mayor to Grant an Easement tb Puget Sound Energy for the
Purpose of Relocating Utilities for the South Division Street Promenade
Project (GP1005)
Public Wortcs Director powdy ezplained that Resolution No: 4744 provides foran
easement to Puget Sound Energy for relocation of utilities for the South Division
Street Promenade Project:
L. June 2011 Financial Report (Coleman)
Committee members reviewed the June 2011 Financial Report. Finance Director
Coleman noted an increase in reyenue, noting increases in cable franchise fees,
building permit fees, and reall estate excise tax. Direc[or Coleman also noted a
slight decrease in fiines antl forfeitures due to less photo enforcement ir�frac[ions.
Director Coleman stated that the Golf Course Fund and Cemetery Fund are both
struggling with low revenues.
There was a brief.discussion of development service fees.
Referring to pages 252-260 relating to enterprise funds; Member Wagner
questioned funding of depreciation and amortization through rates. Finance
Director Coleman explained that depreciation and amortization wili be phased in
over a ten year period of Ume 6eginning with ihe 2012 rates.
VI. ADJOURNMENT
There being no further businessto come before the Committee, the meeting adjoumed
at 6:46 p.m.
/_�
APPROVED THE (U� DAY OF SEPTEMBER, 2011
i �
Nancy cl s,Chair ielle Daskam, City Clerk
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