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Home My WebLink About11-05-2012 cmoF ��* • Finance Committee November 5, 2012 - 5:30 PM Annex Conference Room 7 WAS H I NGTON' MIN UTES i I. CALL TO ORDER Chair John Partridge called the meeting to order at 5:30 p.m. in Annex Conference Room 1 located on the second floor of the City Hall Mnex located at One East Main Street in Auburn. A. Roll Call i Chair John Partridge, vce Chair John Holman and Member Largo Wales were present. City officials and staff members present included: Mayor Peter B. Lewis, City Attorney Daniel B. Heid, Planning and Development Director Kevin Snyder, IT Acting Director Reba Stowe, Public Works Director Dennis Dowdy, Finance Director Shelley Coleman, Advisor to 4he Mayor Michael Hursh, Solid Waste and Reoycling SupenrisorJoan Nelson, Environmental Protection Manager Chris Andersen, and City Clerk Danielle Daskam. Guests present included Scot Pondelick and Chris Kealy B. Announcements There was�no announcement. C. Agenda Mod�cations An additional discussion item relating to municipal utility services on Muckleshoot Indian trust land was added to the agenda. Chair Partridge also announced that Mr Chris Kealy of the Iron Horse Casino will address the Committee prior to discussion items. II. CONSENT AGENDA A. October 15, 2012 Regular Meeting Minutes vice Chair Holman moved and Member Wales seconded to approve the October 15, 2012 minutes. MOTION CARRIED UNANIMOUSLY 3-0 B. Claims Vouchers Claims check numbers 417778 through 418329 in the amount $2,918,160.78 and dated November 5, 2012. Committee members reviewed the claims and payroll vouchers and briefly discussed claims vouchers 4181 B6 and 418257 In response to a question from Chair Partridge regarding claims vouchers Page 1 of 6 418257 to Technical Systems for woric related to the SCADA System (Project No. C524A), Public Works Director powdy explained that the project is in its first phase. This is the first year of the project, and the project is on schedule. MemberWales moved and Vice Chair Holman seconded to approve claims and payroll vouchers. MOTION CARRIED UNANIMOUSLY 3-0 C. Payroll Vouchers (Coleman) Payrbll check numbers 533311 through 533347 in the amount of$270,185.04 and electronic deposit transmissions in the amount of$1,240,365.67 for a grand total of$1,510,550.71 for the period covering October 11-31, 2012. See claims vouchers above for approvat of payroil vouchers. III. RESOLUTIONS A. Resolution No. 4852 (Snyder) A Resolution of the City Council of the City of Aubum, Washington, authorizing the Mayor and City Clerk to execute a Conservation Grant agreement between the City of Aubum and Puget Sound Energy Planning and Development Director Snyder explained that Resolution No. 4852 authorizes the acceptance of a Conservation Grant from Puget Sound Energy in the amount of$35,860. The City qualfied for the grant as a result of the City's heating, ventilation and air cooling upgrade project at the Aubum Justice Center vice Chair Holman moved and Member Wales seconded to approve and forward Resolution No. 4852 to the full Council. MOTION CARRIED UNANIMOUSLY 3-0 B. Resolution No. 4875 (Dowdy) A Resolution of the City Council of the City of Aubum, Washington, declaring certain items of property as surplus and authorizing their disposal Public Works Director powdy presented Resolution No. 4875, which requests the surplus of several items from equipment rerrtal, water, innovation and technology, and facilities. Member Wales moved and Vice Chair Holman seconded to approve and forward Resolution No. 4875 to the full Council. MOTION CARRIED UNANIMOUSLY 3-0 C. Resolution No. 4876 (Coleman) A Resolution of the City Council of the City Of Auburn, Washington, authorizing the Mayor and City Clerk to execute a settlement agreement between the City of Auburn and Waste Management of Washington, Ino., related to missed pickups Finance Director Coleman stated that Resolution No. 4876 provides for a Page 2 of 6 Settlement Agreement with Waste Management for missed solid waste collections from July 25, 2012 to August 1, 2012 due to a labor disruption. The total settlement amount is $225,330. Credits will be given to residential customers in the amount of$10.00 and commercial customers in the amount of$50.00. Vice Chair Holman moved and Member Wales seconded to approve and forvvard Resolution No. 4876 to tlie full Council. MOTION CARRIED UNANIMOUSLY 3-0 IV DISCUSSION ITEMS A. Iron Horse Casino Gambling Taxes Mr Chris Kealy of Iron Horse Casino addressed the Committee regarding gambling taxes on card rooms. The Committee previously discussed a request from Mr Kealy to re-instate the reduction in gambling taxes on social card games. The reduction in the gambling tax rate was reduced pursuant to Ordinance No. 6315 from 12% to 4% for a two year period, which expired in June 2012. The tax rate has since reverted to the 12% rate. Mr Kealy stated that unless the gambling tax rate is reduced soon, he intends to close his business. Without a reduction in the gambling tax rate on card games, his business is not viable. Mr Kealy offered another promissory note for the amount of the difference in the 12% tax rate in place since June 2012 and the 4% tax rate proposed by Mr Kealy Mr Kealy explained that he did not bring his request to Council earlier due to a delayed audit of his business. Upon further discussion, it was consensus of the Committee members to direct staff to prepare an oMinance setting the gambling tax rate on social card games at 4% effective upon signing and receipt of the promissory note. There would be no sunset clause for the reduced tax rate. The ordinance will be scheduled for action by the Finance Committee at the next meeting. The Committee will undertake a longer term study within the next year to review the gambling tax rate and the impact of the gambling tax rate. B. Ordinance No. 6425 (Coleman) An Ordinance of the City Council of the City of Auburn, Washington, authoriiing the levy of regular properly taxes by the City of Auburn for collection in 2013 Finance Director Coleman presented Ordinance No. 6425, which establishes the property tax levy for calendar year 2013. The levy includes a 1.0% increase and property taxes on new construction. Director Coleman noted that the information available from King County is still preliminary as the valuation of new construction has not yet been finalized. Once King County finalizes the City's assessed valuation and new construction, the County will establish the City's actual 2013 property tax levy rate and property taxes. The City's tax rate is at the rate limit of$2.10 per$1,000 assessed value. Page 3 of 6 The ordinance will be presented to the Council for adoption at their November 19, 2012 meeting. C. Resolution No. 4863 (Hursh) A Resolution of the City Council of the Cityr Of Auburn, Washington, adopting the 2013 Community Development Block Grant action plan for the consolidated plan for years 201'I to 2014 Advisor to the Mayor Hursh presented Resolution No. 4863, which provides for the adoption of the 2013 Community Development Blodc Grant Action Plan for the Consolidated Plan for years 2011 to 2014 The Action Plan is required by the U.S. Department of Housing and Urban Development in order for the City to receive federal entitlement funds under the Community Development Block Grant (CDBG) prograrti. Auburn anticipates receiving $450,000 in CDBG funds in 2013. The Planning and Community Development Committee reviewed the resolution and forwarded it to the full Council for approval. D. Resolution No. 4870 (Andersen) A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor and City Clerk to execute an agreement between the City of Aubum and King County for design, project management, and construction management services Environmental Protection Manager Andersen presented Resolution No. 4870, which authorizes the execution of an Interagency Agreement with King County Department of Natural Resources to provide engineering related services for the Fenster Levee Setback Phase 2 Project at the north end of Fenster Nature Park. The purpose of the project is to provide for natural river function and increased natural flood sto�age associated with reconnecting the river to its floodplain and would additionally provide for salmon habitat and refuge for juvenile salmon during flood events. The project has been in development since 2009. The City has received funding from six different sources thus far The City's contribution is $35,000. The balance of the $1.3 million project is from other funding sources, primarily in the form of grants. The resolution was reviewed by the Planning and Community Development Committee and will be before the full Counal later this evening for adoption. Member Wales inquired whether the project will impact adjacent property owners. Mr Andersen explained that the levee will be moved apprbximately 300 feet to the west. The project will not change the flood mapping that FEMA performs. E. Resolution No. 4871 (Stowe) A Resolution of the City Council of the City of Aubum, Washington, approving and authorizing an Interlocal Agreement with the City of Federal Way to share the cost of developing a soflware interface to support the new Valley Page4of6 Communication Computer Aided Dispatch system Acting Innovation and Technology Director Stowe presented Resolution No. 4871 for Committee review The resolu4ion authorizes an interlocal agreement with the cities of Federal Way, Des Moines, Black Diamond and Auburn to create an interface with the new Valley Communications Computer Aided Dispatch (CAD) System that will enable the sharing of data wkh the records system used by the Aubum Police. The City of Federal Way will take the lead in the project for the four cities. The resolution was reviewed by the Municipal Services Committee. F Resolution No. 4872 (Coleman) A Resolution of the City Council of the City Of Auburn, Washington, supporting creation of a secure, convenient medicine retum program in King County to reduce the public safety and environmental impacts of unwanted medicine Finance Director Coleman presented Resolution No. 4872 for Committee review. The resolution encourages the King County Board of Heafth to establish a medicine retum program for unwanted medicines from households through a pharmaceutical manufacturer financing mechanism. G. 2013-2014 Proposed Solid Waste Rates (Coleman) Finance Director Coleman presented the proposed 2013-2014 solid waste rates. The current ordinance%ity code provides for a bur percent rate increase in 2013; however, when the 2013 rate was put in effect, the increase in the tipping fees was unknown. The Municipal Services Committee requested Finance present a new rate structure that includes the increase in King County tipping fees and reduces the residential subsidy The proposed rate structure provides for a decrease in the residential subsidy to $250,000. The proposed rate structure for 2014 reduces the subsidy to $200,000. The goal of the Council is to reduce the subsidy by $50,000 for each year thereafter H. Financial Options Available to the City of Auburn (Coleman) Finance Director Coleman presented the Committee with a chart summarizing the remaining sources of revenues available to the City Mayor Lewis stated that the information will be presented to all Council committees as the Council proceeds to adopt the 2013-2014 Biennial Budget. Mayor Lewis stated the informaUon is provided as options available to fund arterial reconstruction, which cannot take place within the existing budget. Finance Director Coleman reviewed each of the categories: remaining debt capacity—councilmanic and voter approved, public utility tax, cable tv utility tax, general business and occupation taxes, regulatory license fees, park district formation, and transportation benefit district financing options. I. Municipal Utility Services on Muckleshoot Indian Trust Land Page 5 of 6 City Attomey Heid presented proposed city code language relating to a new classification of utility customer for non-lienable property Also presented for Committee review was a Master AgreemenUProvisions for Municipal Utility Service on Trust Lands between the City and the Muckleshoot Indian Tribe. Staff members have been working with the Muckleshoot Indian Tribe to develop an agreement to provide City utility services to trust lands that are within the city limits and within City utility service areas. The draft agreement and the draft city code define the terms by which the Tribe and the City witl install, operate and maintain utility service on trust property Also, the Tribe must agree to provide a mechanism to address delinquent utility accounts since the City cannot lien trust larids for utility payment collection. V ADJOURNMENT There being no further business to come before the Committee, the meeting adjoumed at 6:57 p.m. , APPROVED this ��day of �-�r-�, 2012. �J � JoFj Partridge, Chair Danielle Das cam, City Clerk l Page 6 of 6