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Home My WebLink About01-17-2012 crrroF_ =�`* � Finance Committee January 17, 2012 - 5:30 PM � _.-..- Annex Room 1 � WASHINGTON MINUTES I. CALL TO ORDER Chair John Partridge cailed the meeting to order at 5:30 p.m. in Conference Room 1 located on the second floor of the Gity Hall Annex located at One East Main Street in Auburn. A. RoU Call Chair Partridge, Vice Chair John Holman, and Member Largo Wales were present. Also present were: City Attorney DanieP B. Heid, Chief of Police Bob Lee; Fublic VVorks DirectorDennis Dowdy, Finance Director Shelley Coleman, Risk Manager Rob Roscoe, Shirley Partridge;Joe Mahoney, and City Clerk Danielle Daskam. B. Announcements There was no announcement. C. Agenda Modifications There was no change to the agenda. II. CONSENT AGENDA A. January 3, 2012 Minutes Vice Chair Holman moved and Member Wales seconded to approve the January 3, 2012 minutes. MOTION CARRIED UNANIMOUSLY. 3-0. B. Claims Vouchers (Goleman) Claims check numbers 410289 through 410294 and claims check numbers 410300 through 410650 in the,amount of $4,681,b49.80 and dated January 17, 2012. Claims c,heck numbers 410295 through 410299 and claims check numbers 410631 through 410689 in the amount of $2,337,001.73 and dated January 17, 2012. Committee members reyiewed the claims and payroll vouchers and briefly discussed ciaims vouchers 410322, 410343, 410454, 410496, 410526, 410539, 410575, 410613, 410636, 410662, 410554, 510534, 510438, and 410524. Vice Chair Holman moved and MemberWales seconded to approve4he claims Page 1 of 5 and payroll vouchers. MOTION CARRIED UNANIMOUSLY. 3-0. C. Payroll Vouchers (Coleman) Payroll check numbers 532589 to 532633 in the amount of $846,303.19 and elec#ronic deposit'transmissions in the amount of $t,192,458.98for a grand total of $2,038,762.17 for the pay period covering December 29, 2011 to January i i, 2012. See ciaims vouchers (above) forapproval of payroll vouchers. III. 'RESOLUTIONS A. Resolution No. 4790 (Coleman) A Resolufion of the City Council of the City of Auburn, Washington, declaring certain items of property as surplus and authorizing their disposal Resolution No. 4790 declares two Public Works vehicles and equipment items from the jail as surplus and authorizes their disposal. The vehicles have reached the end of their service life and are wom and becoming increasingly costly to maintain. The jail equipment is old and of no further use to the City. Vice Chair Holman moved and Member Wales seconded to approve Resolution No. 4790. MOTION CARRIED UNANIMOUSLY. 3-0. IV. DISCUSSION ITEMS A. November 2011 Financial Report (Coleman) Committee members reviewed the November 2011 Financial Report. Finance Director Coleman reported that the total General Fund revenues for the City at the end of November are $1.6 million higher4han budget due to relatively stronger than anticipated coilections in property and sales taxes, electric utility taxes and building permit fees. Expenditures for the.General Fund were $5.5 million below budget at the end of November due primarily to unspent budget for retirement and long term care along with timing of payments for SCORE, savings due-to staff vacancies, interfund transfers and under expenditures in professional S@NICBS. � � Director Coleman aiso briefly reviewed the process for deveioping the monthly financial reports. In response to questions from Member Wales, Director Coleman referred the Committee to page 13 of the report and the table of Enterprise funds for informa4ion on the sfatus of the Gemetery Fund as of November 30, 2011. The operating revenues for the Cemetery Fund are$709,455 while the expenses are Page 2 of 5 $931,000. The $200,000 transfer in to the Fund occurred in December 2011 and � is not reflected in the November report. Director Coleman stated that is likely that �even with the transfer in and the increases in cemetery fees, the Cemetery Fund will corrtinue to operate with a loss. Director Coleman pointed out the depreciation and amortization expenses found under operating expenses; which are not a cash amount. Member Wales expressed concem with the operating losses suffered by the Airport, Cemetery and Goff Course ertterprise funds. Director Caleman also reviewed the utility funds and the status of their operating income/iosses. Director Coleman briefly reviewed Real Estate:Excise Tax (REET) revenue, intemal service funds, sales tax summary by industry section, and the investment portfolio summary. B. Resolution No. 4788 (Coleman) A Resolution of the City Council of the City of Auburn, Washington, authorizing the acceptance and appropriatiori of grant funds in the amount of Sixty Two Thousand and Six Hundred Fifty Dollars ($62,650.00), and authorizing the Mayor and City Cierk to execute an interlocal agreement between the Department of Ecology and the City of'Aubum to accept said funds for implerrientafion of the 2012-2013 Coordinated Prevention Grant Program Finance Director Coleman explained that Resolution No. 4788 authorizes the acceptance of a grant from the State Department.of Ecology in the amount of $62,650 as part of the 2012-2013 Coordinated Preverrtion Grant Program to promote waste reduction and recycling. C. Resolution No. 4791 (Dowdy) A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor to award an agreement with the lowest responsible bidder for construction of Public Works Contract Number 11-01 for Project C201 A, M Street SE Grade Separation (Underpass) Public Works Director powdy explained that Resolution No. 4791 will grant the Mayor the authority to award and execute a contract for Project No. C201 A, the M Street SE Grade Underpass Froject. Bids were opened on January 10th, which did not aliow enough time for staff to complete the bid verifications and reference checks on such a large project prior to tonighYs Council meeting. Director powdy distributed the bid tabulation for the project. Scarsella Brothers is the apparent low bidder. D. Resolution No. 4792 (Heineman) A Resolution of the City Council of the City of Auburn, WA authorizing the Mayor and City Clerk,to execute an amendment to a lease between the City of Aubum and the Valley Reg'ional Fire Authority (VRFA) Risk Manager Rob Roscoe stated that Resolution No. 4792 provides for the lease Page 3 of 5 of the City's "GSA" building to the Valley Regional Fire Authority (VRFA). The City - currently shares the-structure with the VRFA. The lease would give the VRFA use of the complete premises. The facilities staffthaYcurrentlyare housed there would be retocated to City Hall. The VRFA wiii be responsible for paying utilities and maintenance of the building. E. WCIA Analysis (Heineman) Risk Manager Rob Roscoe presented the Committee with an analysis of the City's __ . 2012 Wasfiington Cities Insu�ance Authority (WCIA)assessment for liability and property insurance. The City's 2012totai pFemium for liability, auto,bailer and machinery, crime/fidelity, and property is $1,016,088 a decrease:in the 2011 premium of $1,062,759. At the same time, the City lowered its deductible on auto from $25,000 to $5,000. Mr. Roscoe noted that the properry premium increased slightly due to added prope.rty values, such as the Activity Center. The City's liability premium decreased from $887,950 in 2011 to $820,470 for 2012. Mr. Roscoe explained that WCIA calculates the assessmentbased on the overall financial neeiis of the pool and the City's losses and overall expected losses. City losses are limited fo the previous fu�l five-year loss history with individual losses capped at$100,000. Aubum's overall and actuarial loss history declined; however, ttie City's actuarial group's losses increased resultlng in a more modest rate decrease for the City. Mr. Roscoe stated that the data submitted for 2013's assessment rate calculation shows a further decline in losses compared to the data submitted for 2012's assessment. The Planning Department has seen a 55 perceM decrease in losses. Ciiy Council's decision to remove itself from the land use appeal process along with the deletion of developmenYagreements from the code should continue this downward trend. F. Resolution No. 3417 - Poiicy on Membership in Professional, Civic, Community, and SerVice Organizations In response to a question from Member Wales, Ghair Partridge indicated that Resolution No. 3417, relating to the policy on membership in professional; civic, communiry and service will be a future discussion item. City Attorney Heid offered to provide the Committee with a copy of the resolution and the related State AucJitor's opinion. G. Gambling Tax - Pull Tabs Page 4 of 5 Mr. Joe Mahoney, owner of the,Sports Page, located at 2802 Aubum Way North, addressed the Qommittee. He requested that the Committee consider amending the City's gambling tax on pull tabS from five percent of.gross sales to five percent of net proceeds. Mr. Mahoney stated that the existing tax of fiye percent on gross sales equatesto approximately twenty-five percent of net proceeds. Mr. Mahoney also stated that with the competition from tribal casinos, gambling revenue has decreasedseverrty-five percent for his business. Mr. Mahoney presented the Committee members with a copy of a letter that he plansto present to the full Council at their meeting later this evening. Mr. Mahoney was accompanied by representatiyes of the Home Piate Tavern and the Rainbow Cafe. He stated that six operators are affected tiy the pull tab tax. City Attorney Heid stated thatthe Municipal Services Committee is planning on reviewing the issue at a_future meeting. V. ADJOURNMENT There being no further businessto come before the Committee, the meeting adjoumed at 6:55 p.m. � " � APPROVED the �0"� day of February, 2012. /�� n Partridge, Chair Danielle Daskam, Ciry Clerk Page 5 of 5