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Home My WebLink About06-18-2012�' � �'"'� "� �"4'� � � � � Finance Committee June 18, 2012 - 5:30 PM Annex Conference Room 1 MINUTES CALL TO ORDER Chair John Partridge called the regular meeting to order at 5:30 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 Partridge, Vice Chair John Holman, and Member Largo Wales were present. City officials and staff members present included: Mayor Peter B. Lewis, City Attorney Dan Heid, Finance Director Shelley Coleman, Director of Human Resources and Risk Management Brenda Heineman, Risk Manager Rob Roscoe and Deputy City Clerk Shawn Campbell. Also present was Scot Pondelick. B. Announcements There was no announcement. C. Agenda Modifications There was no agenda modification. II. CONSENT AGENDA � : Minutes of the June 4, 2012 regular meeting Vice Chair Holman moved and Member Wales seconded to approve the June 4, 2012 minutes. MOTION CARRIED UNANIMOUSLY. 3-0 Claims Vouchers (Coleman) Claims check numbers 414181 through 414554 in the amount of $6,012,443.56 and dated June 18, 2012 Committee members reviewed the claims and payroll vouchers and briefly discussed claims vouchers 414202, 414225, 414506, 414252, 414460, 414280 and 414414. Vice Chair Holman moved and Member Wales seconded to recommend approval of claims and payroll vouchers to the full Council. MOTION CARRIED UNANIMOUSLY. 3-0 C. Payroll Vouchers (Coleman) Payroll check numbers 532964 through 533007 in the amount of $855,151.71 electronic deposit transmissions in the amount of $1,233,389.79 for a grand total of $2,088,541.50 for the period covering 05/31/12 to 06/13/12 Page 1 of 4 See claims vouchers above for approval of payroll vouchers. III. ORDINANCES A. Ordinance No. 6410 (Coleman) An Ordinance of the City Council of the City of Auburn, 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, Ordinance No. 6378, Ordinance No. 6379, and Ordinance No. 6400, authorizing amendment to the City of Auburn 2011-2012 Budget as set forth in Schedule "A" and Schedule "B" Director Coleman presented budget amendment number 8. Director Coleman reviewed the additions of site improvements to the Auburn Valley Humane Society site and a new position in Human Resources. Member Wales questioned hiring an employment manager. Director Heineman stated this position was cut a couple years ago and the current human resources staff do not have adequate training or expertise to fill the role of an employment manager. Director Heineman said the position will lower the City's liability, update the City policies and procedures, and sit in on every interview and oral board. Mayor Lewis stated the City can no longer wait to fill this position. Member Wales questioned hiring new staff when current staff have foregone raises for four years. Mayor Lewis stated the price of hiring one staff member is very low compared to a raise for all staff. Chair Partridge asked how the City would continue to fund the position. Director Coleman said the monies primarily come from the general fund with small contributions from several other funds. Vice Chair Holman moved and Member Wales seconded to recommend approval of Ordinance No. 6410. MOTION CARRIED UNANIMOUSLY. 3-0 IV. RESOLUTIONS A. Resolution No. 4825 (Dowdy) A Resolution of the City Council of the City of Auburn, Washington, declaring certain Items of property as surplus and authorizing their disposal Mayor Lewis stated this vehicle (1998 International Vactor Truck) is over 14 years old and has passed it useful life. Member Wales moved and Vice Chair Holman seconded to recommend approval of Resolution No. 4825. MOTION CARRIED UNANIMOUSLY. 3-0 V. DISCUSSION ITEMS A. April 2012 Financial Report (Coleman) Committee members reviewed the April 2012 Financial Report. Page 2 of 4 Director Coleman noted that property taxes appear to be lagging on the report but the funds were posted one day after the cutoff date. Member Wales questioned if the City has considered selling the golf course. Director Coleman stated the City owes approximately $4 million for improvements made at the golf course, and it is not feasible to sell the property. Director Coleman noted the golf course revenue should pick up over the summer, and the City has acquired a large amount of inventory in April anticipating the increased use. Director Coleman said the Intergovernmental fund is down primarily due to the May Muckleshoot compact payment being delayed, revenue from fines are down, registration for parks and recreation is also down. She added sales tax revenue is within 2% of the budgeted amount and business licensing and building permits are tracking up. Member Wales questioned the gambling excises tax reduction. Director Coleman stated the reduction in revenue is due to a reprieve given to the Iron Horse on a promissory note and the industry being down in general. Council briefly discussed the fines and penalties associated with the red light cameras. B. Report on Risk Profile (Heineman) Director Heineman introduced Risk Manager Rob Roscoe. She briefly described Washington Cities Insurance Authority (WCIA). Mr. Roscoe explained the City recently completed a compact audit. The audit gives a five (5) year history of the City's losses due to claims against the City including indemnity payments, legal fees and current reserves. From this loss history the City's future assessments are calculated. The City has seen a 2.8% decrease in the 2013 liability assessment. The City has had an increase in worker hours but a decrease in cost per worker hour from over 70 cents per worker hour to 31 cents currently. Director Heineman stated the City has seen a large decrease in the liability assessment in recent years due to good risk management practices by everyone in the City. C. Resolution No. 4794 (Dowdy) A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor and City Clerk to execute an Interlocal Agreement with King County for the purpose of providing road services Mayor Lewis said the City will use King County to do the bridge inspections and repairs along with some roadway markings. The City will also be using Pierce County to complete the citywide street striping. He added the City was very happy with the work performed by Pierce County last year. Chair Partridge asked why the City did not use the private sector for these projects. Mayor Lewis said the work is very technical and the two counties are best equipped to handle the job. D. Resolution No. 4827 (Dowdy) A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor and City Clerk to amend the Memorandum of Agreement with Pierce County for the purpose of providing road services Resolution 4827 was discussed in conjunction with Resolution 4794. VI. ADJOURNMENT Page 3 of 4 There being no further business to come before the Committee, the meeting adjourned at 6:45 p.m. Approved this 2nd day of July 2012. c�l-�= J n Partridge, Chair `� _ C��,�.,� �� Shawn Campbe , Dll eputy City Clerk Items Submitted to the June 18, 2012 Finance Committee Meeting: Auburn's WCIA Liability Assessment by Rob Roscoe Page 4 of 4