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Home My WebLink About10-17-2011 cmoF_ �`* • Finance Committee October 17, 2011 - 6:00 PM Annex Conference Room 1 . discussed claims vouchers 408077, 408150, 408279, 408325, 408386, 408435, 408095, 408103 and 408118. Member Wagnenmoved and Vice Chair Norman seconded to approve the claims and payroll vouchers. MOTION CARRIED UNANIMOUSLY. 2-0. C. Payroll Vouchers (Coleman) Payroii check numbers 532257 to b32308 in the amount of $785,228.15 and electronic deposit transmissions in fhe amount of$1,183,172.53 fora grand total of $1,968,400.68 for the pay period covering September 29, 2011 to October 12;2011. See claims vouchers for approval of payrolF vouchers. III. RESOLUTIONS A. Resolution No. 4759 ,(Dowdy) A Resolutiorn of the City Council of the City of Aubum, Washington, declaring certain items of property as surplus and authorizing their disposal Resolution No. 4759 declares a 2009 police vehicle as surplus; the vehicle was totaled. Member Wagner moved and Vice Chair Norman seconded to recommend City Council approval and adoption of Resolution No:4759. MOTION CARRIED UNANIMOUSIY. 2-0. B. Resolution No. 4760 (Heid) A Resolution of the City Council of the City of Aubum, Washington, authorizing the Mayorto take all necessary and appropria#e steps to formalize a Sister City relationship between the City of Auburn and Tamba, Japan Resolution No. 4760 ratifies the Citys Sister City relationship with Tamba, Japan. The City of Aubum has had,a.Sister City relationship with Kasugo-cho, Japan since 1968. Recently, the City of Kasugo-cho was merged with several other neighboring cities to fo�m the new city of Tamba. Member Wagner moved and Vice Chair Norman'seconded to recommend Council approvai of Resolution No. 4760. MOTION CARRIED UNANIMOUSLY. 2-0. C. Resolution No. 4761 (Heid) A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor to take aIl necessary and appropriate steps to formalize a`8ister City relationship between the City of Aubum and City of Page 2 of 6 Pyeongchang, Republic of Korea Resolution No. 4761 authorizes the Mayor to negotiate and execute agreements and documents with SisterCity associations and with Pyeongchang (Republic of Korea) to establisfi a Sister City relationship with the city of Pyeongchang. Member Wagner moved and Vice Chair Norman seconded to recommend City Council adoption of Resolution No. 4761. MOTION CARRIED UNANIMOUSLY. 2-0. IV. DISCUSSION ITEMS A. Agreement for Consulting Services with Fisher Jurkovich Public Affairs (Robertson) City Council to approvesn Agreement forConsulting Services with Fisher Jurkovich Public Affairs, LLC. Govemment Relations'Manager Robertson explained that Fisher Jurkovich Public Affairs will be p�oviding comprehensive communication and educational materials and a stakeholder management plan in support of the citizen led Arterial Streets Task Force for the proposed 2012 transportation ballot measure. B. Utility Leak Adjustment Appeal - Griffin (Coleman) City Council to approve a leak adjustment in the amount of $35U.00 for account number 013896-000. Finance Director Coleman explained that the leak adjustment is for a leak located on a line serving a single dwelling unit on the same Iine as the primary dwelling SVucture. Per poiicy, the leak adjustment request was denied by staff as the policy provides that an eligibie water leak is defined to have occurred on the service line berinieen the City watermeter-and the point where the line enters 4he building. The leak occurred in a secondary line between the customer's home and a detached secondary building on theirproperty. The custome�subsequently submitted an appeal to their leakadjustment denial to the Public Works Committee. The Public Works Committee is recommending a $350 adjustment. C. Ordinance No. 6379 (Coleman) An Ordinance of the Gity Councii of the City of Aubum, Washington, amending Ordinance No. 6339, the 2011-2012 Biennial Budget Ordinance, as amended by Ordinance-No. 6351, Ordinance No. 6352; Ordinance No. � 6362, Ordinance No. 6370 and Ordinance No. 6378, authorizing tot he City of Auburn 2011-2012 Budget as set forth in Schedule "A" Finance Director Coleman explained that under State law, cities operating under a biennial budget are required to adopt a mid-term budget ordinance to amend, second year appropriations for changes incuned during the first halfof the biennium. Page 3 of 6 Ordinance Na 6379`amends the 2012 Budget (of the 2011-2012 biennium) as follows: updates revenue.for forecasted changes in estimated beginning fund and working capitai fund balances, water utility sales, and general fund property taxes and electrical utility tax collections; recognizes spending authority granted under previous budget amendmertts> requests additional items for inclusion in the 2012 budget, and amends the 2012 budget to reflect changes consistent with the preliminary 2012-17 Capital Facilities Plan.. Additional items for inclusion in the 2012 budget include additional staffing, increases in SCORE jail costs, City Hall remodeling costs, traffic signal LED light replacement, empioyer pension rate changes, extension of the non-paid furlough policy, and several Capital Facility Pian revisions. In response to a question from Member Wagner, Finance Director Coleman explained that the additional jail costs are due to 15 additional average daily population (ADP) requested to reflect actual level of jail usage. The 2012 Budget for SCORE assumed arrADP of 100. Mayor Lewis stated that the increase is due to sentencing practices by the court. Finance Director Coleman reminded that a Gouncii budget work session will be held November 17th beginning at 4:00 p.m. D. Resolution No. 4758 (Dowdy) A Resolu4ion of the City of Aubum, Washington, authorizing the Mayor to execute a Highwaysand Local Programs State,Funding Agreement between the City of Aubum (The City) and the Washington State Department of Transportation (The State) relating to Project No. C201A, M Street SE Underpass City Engineer Selle explained that Resolution No. 4758 authorizes the Mayor to execute a Highways and Local Programs State Funding Agreemerrt with the State to obligate Freight Mobility Strategic Investment Board (FMSIB) funds in the amount of$6 million for construction of the M Street SE Underpass Project. E. August 2011 Financial Report (Coleman) Committee members reviewed the August 2011 Financial Report. Mayor Lewis noted that the General Fund revenues at the end of August are $1.5 miilion higher than budget while expe_nses were $3.6 million under budget. However, some of the enterprise funds are operating at a loss. Finance Director Coleman noted that water sales and consumption in 2011 is trending lower than prior year leveis. Despite the rate increase implemented in January, the decline in water consumption more than offset the increase in rates. The decline in water usage also affects the Sewer Fund. Member Wagner inquired regarding the effect of the potential passage of Initiative 1183 on liquorexcise taz revenue. Mayor Lewis stated that it is his Page 4 of 6 understanding that if Initiative 1183 passes, the City will receive the same level of liquor excise tax revenue plus a percentage of the new revenue created by the Initiative. There was brief discussion relating to internal service funds, business license revenues, and sales tax revenue. E. Utility Financial Condition (Coleman) Finance Director Coleman reviewed an update on the utility financial condition for water, sewer and storm water. Due to an unseasonably cool year, the loss of the Covington wholesale account, and economic and conservation efforts, the water and sewer utilities continue to suffer operating losses. The storm water utility'is maintaining a positive performance. Director Coleman stated that the current revenue forecast for water and sewer in 2U12 and future years does not meet aMicipated operating costs and debt coverage. The decline in water usage results in overall deciine in sewer flows and utiliiy revenue. Di�ectorColeman proposed updating the 2009 water, sewer and storm water utilityrate studies and �eview annual rate adjustments required to fully fund utility financial obligations. Member Wagner reported that the Public Works Committee will be looking at pros and cons for funding depreciation. G. Agreement to Exchange Real Property - Green River Communiry College (Heineman) A Resolution of the City Council of the Ciry of Auburn, Washington, declaring ce.rtain City property as surplus, and authorizing the Mayor and City Clerk to execute agreements between the City of Auburn and the State of Washington for an exchange of property and for joint use and maintenance of property Risk Manager Roscoe presented Resolution No. 4762, which authorizes an exchange of the Lea Hill Park property with State-owned property known as the "Martin Property". The Resolution also authorizes the City to enter in to an Agreement with Green River Community College for joint use and maintenance of the respective facilities. V. ADJOURNMENT There being no further business to come before the Committee, the meeting adjourned at 7:00 p.m. APPROVED THE DAY OF NOVEMBER, 2011. Page 5 of 6 �- Nancy B , Chair anielle Daskam, City Clerk � Page 6 of 6