HomeMy WebLinkAbout09-03-2013 a,vOF_ �' Finance Committee
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September 3, 2013 - 5:30 PM
A = '� N Annex Conference Room 1
—� WASHINGTON 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 Auburn.
A. Roll Call
Chair John Partridge, Vice Chair Largo Wales, and Member John
Holman were present.
City officials and staff members present: Mayor Peter B. Lewis,
Deputy Mayor Nancy Backus, Councilmember Wayne Osborne, City
Attorney Daniel B. Heid, Planning and Development Director Nancy
Welch, Utilities Engineer Dan Rapp, Planning Services Manager
Elizabeth Chamberlain, Parks, Arts and Recreation Director Daryl
Faber, Recreation and Program Marketing Manager Julie Brewer, City
Engineer Dennis Selle, Finance Director Shelley Coleman, Principal
Planner Jeff Dixon, and City Clerk Danielle Daskam.
B. Announcements
There was no announcement.
C. Agenda Modifications
Resolution No. 4989 was added as a discussion item.
II. CONSENT AGENDA
A. August 19, 2013 Regular Meeting Minutes
Member Holman moved and Vice Chair Wales seconded to approve
the minutes as distributed.
MOTION CARRIED UNANIMOUSLY. 3-0
B. Claims Vouchers (Coleman)
Claims voucher numbers 424846 through 425097 in the amount of
$2,296,606.54 and wire transfers in the amount of $2,049.00 and
dated September 3, 2013.
Committee members reviewed claims and payroll vouchers and briefly
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discussed claims voucher number 424961 .
Vice Chair Wales moved and Member Holman seconded to approve
and forward claims and payroll vouchers to the City Council for
consideration.
MOTION CARRIED UNANIMOUSLY. 3-0
C. Payroll Vouchers (Coleman)
Payroll check numbers 534048 through 534081 in the amount of
$307,488.78 electronic deposit transmissions in the amount of
$1 ,278,059.99 for a grand total of $1 ,585,548.77 for the period
covering August 15, 2013 to August 28, 2013.
See claims vouchers above for approval of payroll vouchers.
III. RESOLUTIONS
A. Resolution No. 4985 (Faber)
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 Auburn and King County accepting grant funds for
youth sports facilities
Parks, Arts and Recreation Director Faber presented Resolution No.
4985, which authorizes the acceptance of a $60,000.00 grant from the
King County Youth Sports Facilities Grant Program. The grant will
provide funding for the purchase and installation of the base course
and synthetic surface for a freegame court at Lea Hill Park. The City's
matching share is $12,500.00. In response to a question from Chair
Partridge, Director Faber stated that any reference to no matching
share should be deleted from the resolution.
Vice Chair Wales moved and Member Holman seconded to approve
and forward Resolution No. 4985 to the full Council for consideration
provided the third recital of the resolution is deleted.
MOTION CARRIED UNANIMOUSLY. 3-0
IV. DISCUSSION ITEMS
A. Theater Lease (Coleman)
Finance Director Coleman reviewed the Auburn Avenue Theater
financial information. The current lease agreement was authorized by
Council in July 2006 by Resolution No. 4063. The lease agreement
provides for a fifteen year lease January 1, 2007 to December 31 ,
2021 with an initial base lease payment of $5,500.00 per month or
$66,000.00 per year, escalated annually based upon the US CPI-W.
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Finance Director Coleman referred to tables that provide the annual
revenues and expenditures of the Theater, including the lease
payments. Annual expenditures for the Theater have ranged from
$121 ,000.00 in 2007 to $474,000.00 in 2012.
Director Coleman noted that based on a national study of the
economic impact of arts in the community, there is a 4:1 direct and
indirect economic benefit ratio (four dollars of economic benefit for
every one dollar spent), the estimated benefit to the broader regional
economy is estimated at $485,000.00 to $1 .9 million.
Parks, Arts and Recreation Director Faber presented the Committee
with a PowerPoint presentation on the Auburn Avenue Theater
programming and revenues and expenses for 2012. Director Faber
reviewed the Theater programs including: Live at the Ave, Ave Kids,
Ave Movies, Comedy at the Ave, Youth Theater Spring Break and
Summer Camps, Community Players, and theater rentals by other
groups.
Director Faber displayed the Arts and Economic Prosperity calculator,
an on-line calculator of the economic impact of the arts and culture
industry. The calculator tool is available at the web site for Americans
for the Arts. Based on the population of the community, the total
expenses to run the Theater and the theater attendance, the number
of jobs created, the income derived and the revenues to local and
state governments can be estimated. The median per person
spending is $20.31 per person, per each Theater event. Attendance
at the Theater in 2012 was 11 ,755, which equates to
$238,744.00 (excluding admission) spent in Auburn.
Vice Chair Wales noted that the Theater revenues have steadily
increased over the years. Vice Chair Wales stated the Theater serves
as an important performing arts forum for children, which is not
provided in the schools. She spoke in favor of subsidizing the
arts. Vice Chair Wales acknowledged the historical value of the
building, but expressed concern with the Theater programs once the
lease has ended. She urged the Council to look to the future
regarding the status of the Theater.
Chair Partridge questioned the value of the theater building at the time
of the lease. It was estimated that the assessed value of the theater
building was $237,000.00. Director Faber stated the owners were not
willing to sell the building.
Chair Partridge also noted the City paid $220,000.00 in emergency
repairs to the theater building. There was an emergency repair to a
structural beam, which was not apparent at the time the
lease was entered into. There were additional building repairs due to
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storm damage, the cost of which was covered by insurance.
Mayor Lewis suggested including the full economic benefit of the
Theater program against the full cost of the lease.
Vice Chair Wales questioned the business decision to enter into the
lease for the Theater.
Mayor Lewis spoke regarding the economic impact of the Theater to
the downtown businesses. Mayor Lewis stated the Council, at the
time, made a decision to invest in the arts, and provide an economic
impetus in the downtown.
Committee members agreed discussions regarding a long term plan
to offer the same or similar program should begin as soon as possible.
B. Proceeds from Property Sales (Coleman)
Finance Director Coleman reviewed her memo dated August 28,
2013, regarding treatment of proceeds from City-owned property
sales.
The City just closed the sale of Suite 380 at the annex receiving
$1 ,020,000.00 for the sale. Additionally, there are two City owned
blocks under contract for sale for $1 .6 million.
Funds from the property sales will be receipted into the Capital Facility
Fund, and Council will decide how to use these funds in the future.
The funds are considered to be capital and one-time funds. Finance
staff recommend that the funds are utilized for one-time expenditures
such as a project or program that is one time in nature, or used to pay
off existing debt.
Finance Director Coleman stated she would need to research whether
the funds could be used to pay some of the golf course debt. The
current golf course debt is just under $4 million.
Finance Director Coleman provided an example of the 2010 library
refunding bonds ($1 ,664,450.00) which run through 2018. The
current annual debt service fee if $280,000.00. The City could set the
property sale proceeds aside in an interest bearing account and make
the bond payments on schedule. This would free up the $280,000.00
annual budget payment for the bonds and allow the City to leverage
the payment towards a new bond issue.
Vice Chair Wales commented on the need for funding for the
Community Center project. Vice Chair Wales recommended
an ordinance that would require the City Council to designate any
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proceeds from the sale of assets.
Chair Partridge suggested that the monies freed up from debt service
payment could also be used for operating costs of a new community
center.
C. Ordinance No. 6476 (Dixon)
An Ordinance of the City Council of the City of Auburn, Washington,
amending section 16.10.110 of the Auburn City Code relating to the
location of critical area mitigation
Principal Planner Dixon presented Ordinance No. 6476, which would
amend the City's critical areas regulations. The purpose of the
amendments is to provide greater flexibility and allow mitigation for the
City's critical or environmentally sensitive areas to occur outside the
city limits, which is not currently allowed.
The code amendments were reviewed by the Planning Commission
after a public hearing. After the public hearing, the Planning
Commission forwarded their recommendation for approval to the City
Council. The Planning and Community Development Committee
reviewed the proposed code amendments on May 28 and August 26,
2013, and subsequently recommended approval.
D. Ordinance No. 6477 (Chamberlain)
An Ordinance of the City Council of the City of Auburn, Washington
amending Sections 5.22.020, 5.22.040, 18.04.330, 18.04.330,
18.04.340, 18.04.350, 18.04.360, 18.04.794, 18.07.020 and 18.31.130
of the City Code, creating new Sections 18.04.249 and 18.04.677, of
the City Code, repealing Section 18.04.180 of the City Code, and
amending the City of Auburn Fee Schedule, related to rental housing
Planning Services Manager Chamberlain presented Ordinance No.
6477, which amends several sections of the code relating to rental
housing. Manager Chamberlain reviewed the history of the code
changes noting that the changes stem from an increase in rental
housing in residential neighborhoods adjacent to Green River
Community College. Residents in the area expressed concern with
parking impacts, unpermitted conversion of garages to living spaces,
overcrowding of single family homes, lack of solid waste
management, noise, and overall conversion of single family
residences to rentals.
The code amendments include a new definition for communal
residence. The ordinance would also expand the rental business
licensing program to require additional information from the landlords
and require annual inspection of the premises to ensure safety and
code compliance. Additionally, a communal residence with more than
four unrelated individuals would require a conditional use permit.
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Manager Chamberlain stated there is no grandfathering of existing
communal residences and all must be compliant by December 31 ,
2013. The licensing fee for a communal residence is $150.00 per
year.
Staff members are developing an implementation plan which includes
a notice to property owners and residents, particularly in the Green
River Community College area. Green River Community College will
be working with the City to ensure notification of the affected
properties.
Manager Chamberlain reported there was considerable public
comment regarding the code amendments, which were primarily
favorable.
Chair Partridge expressed concern regarding the impact of the
proposed amendments to students and landlords.
In response to questions from Chair Partridge, Manager Chamberlain
stated the communal residence licensing fee is based on the base
business license fee plus the cost of a courtesy inspection and the
cost of staff processing. The average cost of a conditional use permit
is approximately $1 ,300.00.
Planning and Development Director Welch stated that existing code
enforcement officers will be sufficient to enforce the proposed code.
Code enforcement is primarily complaint driven and the goal is to
ensure compliance. Director Welch stated the average size of houses
in the neighborhood is three to four-bedroom; therefore, more than
four people in communal living means that some portion of the house
is being converted to a bedroom.
The Planning Commission and the Planning and Community
Development Committee reviewed the proposed code amendments
and recommended approval.
E. Ordinance No. 6478 (Chamberlain)
An Ordinance of the City Council of the City of Auburn, Washington,
amending Section 18.57.030 of the Auburn City Code related to the C-
1 Light Commercial Zone and Mixed-Use Development Standards
Planning Services Manager Chamberlain presented Ordinance No.
6478, which amends the City Code related to the C-1 Light
Commercial Zone and mixed-use development standards. Manager
Chamberlain stated recent inquiries from private developers and
property owners have raised questions about the market viability of
meeting the mixed-use standards required for C-1 Light Commercial
Zone. The current code requires 50 percent of the cumulative ground
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floor space for a development with two or more buildings be dedicated
to commercial retail, entertainment or office uses.
The proposed amendments reduce the commercial requirement on a
sliding scale: 1 building = 50 percent; 2 buildings = 25 percent; 3
buildings = 20 percent; 4 buildings = 15 percent and 5 or more
buildings = 10 percent of the cumulative building ground floor square
footage.
The amendments were reviewed and approved by the Planning
Commission and Planning and Community Development Committee.
F. Resolution No. 4986 (Dowdy)
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the Mayor and City Clerk to execute agreements between
the City of Auburn and Cascade Water Alliance for the purchase and
sale of credits relating to permanent and reserve wholesale water
supply capacity
Utilities Engineer Repp presented Resolution No. 4986, which
authorizes the purchase of wholesale water supply from Cascade
Water Alliance. Cascade Water Alliance purchased both permanent
and temporary blocks of water from Tacoma Water. Cascade Water
Alliance no longer needs this water and is willing to sell it to the City
for a discounted price.
Cascade Water has two types of water supply available, the first being
a permanent block of water known as the 4 Million Gallons per Day
(MGD), of which the City would purchase 2.5 MGD. The second type
of water is a temporary block of water, known as the 6 MGD reserve
supply, of which the City would purchase 2.736 MGD.
The cost for the permanent supply credit is $7,893,300.00 to be paid
over 13 years. The cost of the temporary supply credit is
$1 ,427,864.00 to be paid over 13 years. The temporary supply can
be converted to a permanent supply by paying the difference between
Cascade's price and Tacoma's permanent water system development
costs.
The Public Works Committee recommended approval of the
agreements.
G. Resolution No. 4989
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 Auburn and the lowest responsible bidder for
Public Works Contract Number 13-10, Project Number CP1207, D
Street Utility Improvements
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City Engineer Selle presented Resolution No. 4989, which authorizes
the Mayor to execute an agreement with the lowest responsible bidder
for Public Works Contract No. 13-10, Project No. CP1207, D Street
NE Utility Improvements.
City Engineer Selle reported that originally staff intended to request
Council permission to award the bid; however, the second lowest
bidder has protested the bid award to the lowest bidder. Staff
members require additional time to respond to the protest and request
Council approval of Resolution No. 4989, which will authorize the
Mayor to award the bid to the lowest responsible bidder, provided that
the costs do not exceed 110 percent of the project budget.
Vice Chair Wales expressed opposition and stated she will express
her objections at the City Council meeting later this evening.
V. ADJOURNMENT
There being no further business to come before the Committee, the
meeting adjourned at 7:27 p.m.
APPROVED this 16th day of September, 2013.
ohn Partridge, Chai Danielle Daskam, City Clerk
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