HomeMy WebLinkAbout02-19-2013 * Finance Committee
ClTY OF _-�~ •
- February 19, 2013 - 5:30 PM
Annex Conference Room 1
WASHING`iON. MINUTES
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 Annex at
One East Main Street in Aubum.
A. Roll Call
Chair John Partridge, Vice Chair Largo Wales and Member John
Holman were present.
City officials and staff inembers present included: Mayor Peter B.
Lewis, Public Works Director Dennis Dowdy, Utilities Engineer Dan
Repp, Water Utility Engineer Cynthia Lamothe, Planning and
Development Director Kevin Snyder, Planning Manager Elizabeth
Chamberlain, City Attorney Daniel B. Heid, Finance Director Shelley
Coleman, Business Systems Analyst Jim Felty, and City Clerk Danielle
Daskam.
Also present were Scot Pondelick and John Pinsker
B. Announcements
There was no announcement.
C. Agenda Modifications
A revised Resolution No. 4910 was distributed to the Committee.
II. CONSENT AGENDA
A. February 4, 2013 Regular Meeting Minutes
Member Holman moved and Vice Chair Wales seconded to approve
the February 4, 2013 minutes.
MOTION CARRIED UNANIMOUSLY 3-0
B. Claims Vouchers (Coleman)
Claims check numbers 420355 through 420664 in the amount of
$4,309,850.92 and dated February 19, 2013.
Committee members reviewed the claims and payroll vouchers and
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briefly discussed claims vouchers 420460, 420496, 420532, 420542,
and 420570.
�ce Chair Wales moved and Member Holman seconded to approve
and forward the claims and payroll vouchers to the full Council.
MOTION CARRIED UNANIMOUSLY 3-0
C Payroll Vouchers
Payroll check numbers 533602 through 533631 in the amount of
$843,431.35 and electronic deposit transmissions in the amount of
$1,190,039.16 for a grand total of $2,033,470.51
See claims vouchers above for approval of payroll vouchers.
D Bad Debt Write Off- Parks, Arts & Recreation (Faber)
City Council approve the write off of outstanding Parks, Arts &
Recreation accounts in the amount of $3,641 00
Committee members reviewed the request to write-off bad debt of
parks and recreation fees in the amount of $3,641 00. The bad debt
cons'ists of unpaid department programs and facility rentals from 2001
through 2011 that have been deemed uncollectible.
Vice Chair Wales moved and Member Molman seconded to approve
and fon+vard the request for bad debt write-off to the full Council.
MOTION CARRIED UNANIMOUSLY 3-0
III. ORDINANCES
A. Ordinance No. 6451 (Coleman)
An Ordinance of the City of Aubum, Washington, relating to the
combined utility systems of the City; providing for the issuance of one
' or more series of utility system revenue bonds of the City in the
aggregate principal amount of not to exceed $13,000,000.00 (1) to pay
a portion of the cost of certain improvements described herein, (2) to
make a deposit to the debt service reserve account, and (3) to pay the
costs of issuance and sale of the bonds; fixing or setting parameters
with respect to certain terms and covenants of the bonds; appointing
the City's designated representative to approve the final terms of the
sale of the bonds; and providing for other related matters
Finance Director Coleman presented Ordinance No. 6451, an
ordinance authorizing the issuance of utility system revenue bonds in
the amount of$13 million. The ordinance was reviewed at the
February 4, 2013 Finance Committee meeting.
There was brief discussion and clarification of Sections 2(c) and 2(d).
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Vice Chair Wales expressed concem about issuing more debt. She
spoke regarding the possible opportunity to issue bank qualified bonds
at a lower rate. Finance Director Coleman responded that the cost of
issuing non-bank qualified bonds is only a quarter of a percent.
Pricing of the bonds is scheduled for February 28th.
Chair Partridge noted that Exhibit A of the Ordinance contains a
description of the improvements/projects that will be funded through
the bond issue.
Vice Chair Wales moved and Member Holman seconded to approve
and forward Ordinance No. 6451 to the full Council.
MOTION CARRIED UNANIMOUSLY 3-0
IV RESOLUTIONS
A. Resolution No. 4906 (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. 4906, which
authorizes the surplus and disposal of five vehicles. Four vehicles are
police vehicles that have met their useful life and one vehicle, used by
the Parks and Recreation Director, was involved in an accident and
has been declared a total loss.
In response to questions from Vice Chair Wales, Director powdy
explained that there is a schedule for the replacement of police and
other vehicles. The life of vehicles can vary based upon the amount of
mileage and the maintenance costs.
Vice Chair Wales moved and Member Holman seconded to approve
and forward Resolution No. 4906 to the full Council.
MOTION CARRIED UNANIMOUSLY 3-0
V DISCUSSION ITEMS
A. SCADA System Overview (Dowdy)
Utilities Engineer Dan Repp and Water Utility Engineer Cynthia
Lamothe presented an overview of the control system that operates
the City's utilities systems, known as SCADA, Supervisory Control and
Data Acquisition System.
The SCADA System project is a significant project for the utilities, and
the project budget is approximately $5.5 million and has spanned two
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and half years. The project included extensive design and
, standardization work. The City's existing telemetry system is
antiquated and obsolete, while the new SCADA System provides
redundancy, flexibility, and remote access that the current telemetry
system is incapable of providing.
Using a projector, Water Utility Engineer Lamothe reviewed the
architecture of the system, and spoke about sanitary sewer and pump
station configurations and the configuration of the water system. Utility
stations/sites are still being brought online to the system. The
presentation ended with the reporting capabilities of the software.
The project is slated for completion in December 2013.
B. December 2012 Financial Report (Coleman)
Committee members reviewed the December 2012 Financial Report.
Finance Director Coleman noted revenue collections totaled $52.8
million representing an increase in budgeted revenues of$49.3
million. Increased revenues were primarily from building permits, plan
check fees, retail sales tax collections, and property tax collections.
Expenditures totaled $52.9 million; less than budgeted expenditures of
$59 0 million.
There was brief discussion regarding police sta�ng. Mayor Lewis
stated that the Police Department is authorized for 100 officers; there
are currently 82 filled positions. Many of the vacancies are due to
retirements. The Human Resources Department is actively recruiting
for new o�cers and lateral transfers. Another obstacle is
getting police officers accepted to the Police Academy due to stafFng
and funding issues at the Academy
In response to questions from Member Holman regarding garbage tax
and leasehold excise tax collections, Finance Director Coleman
explained that the City brought several annexation areas under the
City's solid waste contract, and therefore, the City no longer receives
the external vendor tax. The leasehold excise tax is primarily received
from leases at the airport and leased tower sites; the reduction in
revenue may be due to the timing of collections.
In response to questions from Member Holman regarding the Non-
departmental Fund, Finance Director Coleman stated
that expenditures for LEOFF 1 medical and long term care are made
from the Non-departmental Fund. Additionally, debt service payments
for Valley Com and the library bond, contingency funds, and interFund
transfers out are allocated to the Non-departmental Fund.
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,
Vice Chair Wales questioned the return of liquor excise taxes.
Finance Director Coleman explained that the State suspended liquor
excise tax disbursements to cities for a twelve month period but will be
reinstated at a lowered level starting July 1, 2013. Director Coleman
estimated that the City will receive approximately 60 to 65 percent of
what was received in 2011 liquor excise taxes.
Finance Director Coleman noted that Golf Course revenues
are increasing and are tracking close to 2011 levels. Member Holman
noted that the Golf Course eniied with a net operating loss of
$365,000.00; however, if depreciation is removed, the net operating
loss is approximately $22,000.00.
C Ordinance No. 6456 (Coleman)
An Ordinance of the City Council of the City of Aubum, Washington,
amending Ordinance No. 6432, the 2013-2014 Biennial Budget
ordinance, authorizing amendment to the City of Auburn 2013-2014
Budget as set forth in Schedule "A" and Schedule "B"
Finance Director Coleman presented Ordinance No. 6456,
representing budget amendment number one for the 2013-2014
Budget. The Ordinance carries forward several capital projects from
2012; axounts for the termination of the 40-hour furlough policy, 2013
cost=of living adjustments, and staff add'itions; and adjusts revenue
estimates.
D Resolution No. 4910 (Dowdy)
A Resolution of the City Council of the City of Aubum, Washington,
authorizing the Mayor to accept a federal grant to be administered
through the Washington State Department of Transportation for the
37th Street and B Street NW Pre-Signal Project
Public Works Director powdy presented Resolution No. 4910. The
Resolution authorizes the acceptance of a federal grant in the amount
of $307,550.00 to finance the design and construction of the 37th
Street and B Street NW Pre-signal Project. The 20 percent matching
share will be funded from the 102 Arterial Street Fund.
The project will mitigate the impacts from the proposed BNSF third
mainline rail anticipated to be constructed in 2014
E. Resolution No. 4912 (Dowdy)
A Resolution of the City Council of the City of Aubum, Washington,
authorizing the Mayor to accept a federal grant to be administered
through the Washington State Department of Transportation for the
West Valley Highway System Preservation Project
Public Works Director powdy presented Resolution No. 4912, which
authorizes the acceptance of a federal grant in the amount of
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$560,000.00 to finance the design and construction of the West Valley
Highway System PreservaUon Project. The project will overlay West
Valley Highway between 15th Street NW and 37th Street NW The
total project cost is estimated to be $1,120,000.00 and will be funded
from the grant and the 105 Arterial/Collector Street Pavement
Preservation Fund.
F Resolution No. 4914 (Snyder)
A Resolution of the City Council of the City of Aubum, Washington,
authorizing the dedication of a portion of City-owned property as City
Right-of-Way
Planning and Development Director Snyder presented Resolution No.
4914 and explained the Resolution corrects and removes an
encroachment of City owned property at 810 30th Street NE in the
public right-of-way During some recent survey work, City staff
ident�ed the encroachment, specifically the portion of the property
along I Street. The Resolution authorizes the execution of a deed to
dedicate a portion of the property as City right-of-way
G. Resolution No. 4915 (Snyder)
A Resolution of the City of Auburn, Washington, ratifying the
amendments to the King County Countywide Planning Policies for
consistency with Vision 2040
Planning and Development Director Snyder presented Resolution No.
4915. The Resolution expresses the City's support and ratification of
the 2012 King County Countywide Planning Policies. City of Aubum
staff have been involved in the inter jurisdictional staff team for the
Countywide Planning Policies. Tfie amendments cover a broad, range
of issues. Director Snyder not_ed the affordable housing policy
changes where the City of Aubum worked to ensure a new approacFi
that focuses more on strategies and less on numbers.
H. Procurement Cards
Vice Chair Wales inquired regarding the status of procurement cards.
Finance Director Coleman advised that procurement cards have been
ordered for the City Council.
I. Letter ftom Seattle King County Realtors
Member Holman noted the receipt of a letter dated February 15,
2013, addressed to Mayor Lewis and #he City Council from Sam
Pace of the Seattle King County Realtors in support of Ordinance No.
6455, which allows contractors and developers to defer payment of
impact fees and system development charges to the time of closing or
certificate of occupancy, but not later than 18 months after issuance of
a permit.
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VI. ADJOURNMENT
There being no further business, the meeting adjourned at 7•00 p.m.
APPROVED this 4th day of Marcti, 2013.
� �
n Partridge, Chair Danielle Daskam, City Clerk
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