HomeMy WebLinkAbout10-01-2012 cmroF. �^* • Finance Committee
October 1, 2012 - 5:30 PM
Annex Conference Room 1
WASH 1 NGTON MINUTES
I. CALL TO ORDER
Chair John Partridge called the meeting to order at 530 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 John Partridge, Vice Chair John Holman and Member Largo
Wales were present. City officials and staff inembers present
included: Mayor Peter B. Lewis, Economic Development Planner Bill
Thomas, Finance Director Shelley Coleman, City Engineer Dennis
Selle, City Attomey Daniel B. Heid, and City Clerk Danielle Daskam.
Also present was Scot Pondelick.
B. Announcements
There was no announcement.
C Agenda Modifications
Resolution No. 4864 was added to the agenda.
II. CONSENT AGENDA
A. Minutes of the September 17, 2012 regular meeting
Member Wales moved and Vice Chair Holman seconded to approve
the September 17, 2012 minutes.
MOTION CARRIED UNANIMOUSLY 3-0
B Claims Vouchers (Coleman)
Claims check numbers 417031 through 417414 in the amount of
$2,940,907.94 and dated October 1, 2012.
Committee members reviewed the claims and payroll vouchers and
briefly discussed claims vouchers 417067, 417089, 417208, 417252,
417309, 417032, 417301, 417137, 41725, and 417371
�ce Chair Holman presented Finance Director Coleman with a
spreadsheet that he had prepared of cemetery lot sale revenue,
interments and inumments, number of employees, and net working
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capital from operations since 2002. He explained that some of the
information is missing and he cannot confirm the accuracy of the
information. He requested that Finance staff complete the information
for the years missing.
�ce Chair Holman stated that it appears that the cemetery lot sales
revenue has been flat over the years. The revenue from interments
and inurnments also appears to be flat. The net working capital has
been declining and has gone 'into the red starting in 2007
Mayor Lewis stated that the City's costs for cemetery employees
salaries and benefits have increased while revenues remain flat.
Human Resources Director Heineman and Finance Director Coleman
are already working on additional background materials related to
the cemetery for the Committee to review
Member Wales moved and Vice Chair Holman seconded to approve
and forward claims and payroll vouchers to the full Council for
approval.
MOTION CARRIED UNANIMOUSLY 3-0
C. Payroll Vouchers (Coleman)
Payroll check numbers 533226 through 533269 in the amount of
$277,449.58 and electronic deposit transmissions in the amount of
$1,289,539.52 for a grand total of$1,566,989 10 for the period
September 13, 2012 to September 26, 2012.
See claims vouchers above for approval of payroll vouchers.
III. RESOLUTIONS
A. Resolution No. 4857 (Coleman)
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the Mayor and City Clerk to execute a contract with the
Auburn Food Bank
Finance Director Coleman presented Resolution No. 4857 The
Resolution authorizes the renewal of a contract with the Auburn Food
Bank to provide residents of the City with financial help through the
Auburn Cares Program to pay for heating bills, water/sewer utilities,
shelter and other emergent financial needs.
Vice Chair Holman moved and Member Wales seconded to approve
and forward Resolution No. 4857 to the full Council for approval.
MOTION CARRIED UNANIMOUSLY 3-0
B. Resolution No. 4860 (Dowdy)
A Resolution of the City Council of the City of Auburn, Washington
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declaring certain items of property as,surplus and authorizing their
disposal
City Engineer Dennis Selle explained that.Resolution No. 4860
authorizes the surplus and disposal of a mower, a vactor truck, a
pickup, and froe tables from the Senior Center The mower and pickup
truck have been replaced; neither is cost effective to repair The seven
year old vactor truck has been replaced and is of no further use to the
City It is in the best interest of the City to sell the equipment and
realize the funds from its sale. The Senior Center has no further use
for the five round folding tables.
Vice Chair Holman moved and Member Wales seconded to approve
Resolution No. 4860 and forward it to the full Council for approval.
MOTION CARRIED UNANIMOUSLY 3-0
C Resolution No. 4864
A Resolution of the City Council of the City of Auburn, Washington,
expressing the opposition of the Auburn City Council to the placertient
of King County solid waste disposal transfer sites at 1380 C Street
Northwest and 901 C Street Southwest in Auburn, Washington
Ciry Attorney Heid stated that Resolution No. 4864 provides for a
collective statement of the Aubum City Council expressing opposition
to the two sites in Aubum that have been identified as potential solid
waste transfer station sites.
Vice Chair Holman commented that both of the sites in Auburn are
located in the City's Innovation Partnership Zone. The siting of a
transfer station at either location would adversely impact the City with
lost property tax revenue, lost sales tax revenue, increased truck traffic
and congestion, among other negative impacts.
Four sites are under consideration by King County--two in Aubum, one
in Algona, and one in Federal VNay
Vice Chair Holman moved and Member Wales seconded to approve
Resolution No. 4864 and forward the Resolution to the full Council for
approval.
MOTION CARRIED UNANIMOUSLY 3-0
IV DISCUSSION ITEMS
A. Iron Horse Casino and Gambling Taxes (Coleman)
Finance Director Coleman presented the Committee members with a
draft ordinance relating to the reduction of the tax on social card games
for two years.
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Aiso presented for Committee review was a letter from Chris Kealy of
the Iron Horse Casino requesting the Council extend the reduced
gaming tax rate of 4% for an additional 24 month period effective July
1, 2012.
Finance Director Coleman stated that she is waiting for
additional information from Mr Kealy before administration makes a
recommendation on the request from Iron Horse Casino.
Finance Director Coleman explained that in 2010, at the urging of the
Iron Horse Casino, the Council adopted a temporary reduction of the
gambling tax on social card games from 129!o to 4% of the gross
amount of revenue received from social card games. The tax reduction
expired in June 2012 and the tax rate is now at 12%. Director
Coleman acknowledged that with the cuRent economic condition and
competition from tribal casinos, the social card game activity has
suffered a reduction in business.
Director Coleman reported that the Iron Horse Casino has provided
� audited financial statements. Mr Kealy has stated that without the
gambling tax reduction his business will close. Director Coleman
stated that Mr Kealy has also requested that the difference between
the 12% and 4% tax rate that has been in effect since July be added to
his existing promissory note. The note is approximately $350,000 and
is due at the end of 2014
Chair Partridge expressed concern with the request and questioned the
impact on City revenues. Mayor Lewis recommended that any
extension of the tax reduction be conditioned on the receipt of a
personal guarantee.
Finance Director Coleman stated that the business pays gambling
taxes quarterly and is current on its promissory note. The balance of
the promissory note is due at the end of 2014
Mayor Lewis suggested Committee members review the businesses
audited financial statements with Finance Director Coleman.
Vice Chair Holman expressed support for extending the gambling tax
reduction provided the outstanding debt is guaranteed.
Committee members expressed concem with adding to the promissory
note.
Director Coleman stated that she woufd discuss with Mr Kealy the
Committee's recommendations of reducing the card room tax to 4%
through the end of 2014 with a personal guarantee, but the card room
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tax that has been in place for the last three months would be 12% and
payable this quarter
Member Wales reported that the Municipal Services Committee also
recommended a reduction of the tax to 4% and securing the
outstanding debt.
B. Resolution No. 4861 (Coleman)
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the Mayor to execute a contract with Century West
Engineering Corporation for consulting services
Finance Director Coleman stated that Resolution No. 4861 authorizes a
contract for professional services with Century West Engineering
Corporation for preparation of the Airport Master Plan update.
Economic Devetopment Planner Bill Thomas stated that the cost of the
Airport Master Plan update will be paid from a Federal Aviation
Administration grant. The grant will pay 90% of the cost of the project
with the balance being paid from the Airport Fund.
C Resolution No. 4862 (Dowdy)
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the Mayor to execute a Local Agency Agreement between
the City of Auburn and the Washington State Department of
Transportation relating to the citywide traffic signal safety
improvements
City Engineer Dennis Selle explained that Resolution No 4862
authorizes the acceptance of a $400,000 federal grant from the
Washington State Department of Transportation for traffic signal safety
improvements for the Citywide Traffic Signal Safety Imp�ovements
project.
The project includes a variety of traffic signal safety improvements
such as flashing yellow left turn signal heads, installation of auxiliary
signal heads, new or improved vehiGe detection systems, installation of
signal head back plates, countdown pedestrian signal heads, enhanced
pedestrian pushbuttons and new LED signal lamps. City Engineer
Selle directed the Committee members to the map in the agenda
packet, which identifies the intersections that will receive
improvements.
D Auburn Avenue Theater
In response to a question from the Committee, Finance Director
Coleman stated the budgeted expenses for the Aubum Avenue
Theater in years 2013 and 2014 are $513,000 each year The lease
payment is approximately $70,000 per year, and there are
approximately eight or nine years left on the lease. The revenue from
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the theater is approximately $100,000 annually
Mayor Lewis commented that the theater draws several hundred
people to the downtown area for events such as Aubum Avenue Kids,
Comedy Club, and other pertormances and cultural events.
V ADJOURNMENT
There being no further business to come before the Committee, the meefing
adjoumed at 6:45 p.m.
APPROVED the 15th day of October, 2012.
� � T o /� �
hn Partridge, Chair Danielle Daskam, City Clerk
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