HomeMy WebLinkAbout02-09-2015c:E-rYOF City Council Study Session
February 9, 2015 - 5:30 PM B U R- N Auburn City Hall
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CALL TO ORDER
Deputy Mayor John Holman called the meeting to order at 5:30 p.m. in
the Council Chambers at Auburn City Hall, 25 West Main Street in
Auburn.
A. Roll Call
City Councilmembers present: Deputy Mayor Holman, Rich
Wagner, Bill Peloza, Largo Wales, Wayne Osborne, Claude
DaCorsi. Councilmember Yolanda Trout was excused.
City officials and staff members present included: Mayor Nancy
Backus, City Attorney Daniel B. Heid, Community Development and
Public Works Director Kevin Snyder, Assistant Director of
Engineering Services /City Engineer Ingrid Gaub, Finance Director
Shelley Coleman, Financial Planning Manager Bob Brooks, Utilities
Engineering Manager Lisa Tobin, Assistant Chief of Police William
Pierson, Director of Administration Michael Hursh, Public Affairs and
Marketing Liaison Dana Hinman, IT Operations Manager Ashley
Riggs, IT Customer Support Manager Reba Stowe, and Deputy City
Clerk Shawn Campbell.
II. Announcements, Reports, and Presentations
A. Downtown Association (15 Minutes)
Laura Westergard from the Downtown Association presented 2014
Downtown Fagade Recommendations.
She explained the Main Street Program has a four point
approach including the Design Committee, economic development,
organization, and promotion of the downtown area. The City is
offering a Main Street Tax credit where the business receives a 75%
sales tax credit in the following tax year if they use the funds to do
improvements. Currently only one business has taken advantage of
this sales tax credit.
Ms. Westergard explained the Downtown Association Has divided
restorations into two categories; simple, anything under
$5,000.00 and major anything over $5,000.00. She noted that Key
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Bank has offered low interest business loans to the downtown area
businesses. The next step is to meet with each area business and
assess their needs.
Councilmember Wales noted attention to branding for each business
is very important. Councilmember Osborne asked if the Downtown
association has reached out to the building owners rather than the
tenants. Ms. Westergard stated currently they are only working with
one owner. Councilmember DaCorsi stated the Downtown
Association needs shoppers more involved in the planning process.
Councilmember Wales wants to ensure there would be centralized
branding throughout downtown.
III. AGENDA ITEMS FOR COUNCIL DISCUSSION
A. Legislative Update (10 Minutes ) ( Hursh)
Director of Administration Hursh explained the City of Auburn has
two consulting groups working for the City. Washington2 Advocates
and Thompson Consulting Group. Both have been good partners to
the City. Director Hursh highlighted the activities in 2014 including
the SR167 completion, oil train safety, Marketplace Fairness Act,
Water Resources Development Act, regulatory issues, Veterans and
Human Services Center, Sound Transit and local issues.
Director Hursh reviewed the City's priorities in the 2015 Legislative
Session including a transportation package that includes funds to
complete SR167 and Hwy 520, Market Place Fairness Act and
Municipal Bond Tax exemptions and the Indian Gaming Regulatory
Act. The City is working on continuing to improve the relationship
with the Muckleshoot Tribe, working with Sound Transit to move
forward on a plan to start construction an the second parking
garage, considering a property tax limit, receiving funding from the
sales of marijuana, restoring funding from the State for infrastructure
investment from the Public Works Trust Funds Loans, maintaining
the revenue sharing between the cities and to restore local liquor
revenues, and keeping streamlined sales tax mitigation.
Councilmember Wagner stated Association of Washington Cities
requested the legislature authorize funding for a new Post Office
and other funding opportunities for transportation. Councilmember
Wales asked if the administration had considered having a group of
councilmembers meeting with the King County
Executive quarterly. Mayor Backus noted she does have monthly
meetings with Executive Constantine as part of the Sound Cities
Association meetings.
B. Utility Cost of Service Study (30 Minutes) (Coleman)
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Financial Planning Manager Brooks and Utilities Engineering
Manager Tobin presented Council with the Water, Sewer and Storm
Drainage Cost of Service Study.
Financial Planning Manager Brooks explained the purpose of the
presentation is to review the ratemaking process, update the Council
on the status of the consultant's study, determine what actions if any
are needed now or later and answer any questions for
Council. Financial Planning Manager Brooks reviewed the
ratemaking process. He stated the criteria for sound rate design
include simplicity and understandability, effectiveness in yielding
total revenue requirements, revenue stability from year to year, rate
stability, fairness in apportionment of total cost of services among
customers and discouraging wasteful use of service while promoting
all justified uses.
Financial Planning Manager Brooks reviewed the rate making
requirements including how much the City needs to collect overall
and from each ratepayer, developing the cost of service amount for
each customer class, and develop specific rate alternatives for each
customer class.
Financial Planning Manager Brooks explained the City hired FCS
Group in 2013 to conduct a Cost of Service Study. The major tasks
of the consultant were to prepare a cost of service analysis that
assigns costs to each class of customers based on their respective
use of each utility system, evaluating the retail rate structure for
each utility addressing both cost of service finding and rate policy
objectives and recommendation for modifications to rate structures
and rate levels considering factors such as rate and revenue
stability, customer equity, efficiency of use, and administrative
practicality.
Financial Planning Manager Brooks reviewed the Water Cost of
Service Study. He explained FCS reviewed the seven existing retail
rate classifications and recommended the City combine the City
and school accounts into the commercial class. He also noted there
is currently a single base charge for each classification regardless of
the meter size. He said some items Council may want to consider in
the future are varied base charges based on meter size, charging
single family residential in volume tiers, and a re- designed fixed
versus volume -based charges.
Councilmember Wagner asked how the purchase of water from
Tacoma Water is included in the Cost of Service Study. Financial
Planning Manager Brooks explained it is included in the
requirements from the budget. Councilmember Peloza asked if the
Council adjusted the rates if it would cover the costs of service in the
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upcoming years. Financial Planning Manager Brooks stated the
department will need to review the rates against the new budget.
Financial Planning Manager Brooks spoke about the single base
charges for each classification of the meter sizes. The cost of the
service could change substantially for a commercial customer if the
City changed to different base charges for each meter size
or account classification. Councilmember Wales asked how many
different sizes of meters the City uses. Financial Planning Manager
Brooks stated the City uses 10 different sized meters. The City is
currently in the process of converting to remote read meters.
Councilmember Wagner stated the Council policy previously was
based on water conservation. Financial Planning Manager Brooks
explained the Council will have the opportunity to explore the rate
structures, schedules and other options in greater detail when this
topic is brought back before Council. The department is looking for
guidance on a direction to move forward. Council discussed forming
an ad hoc committee. It was the consensus of the Council to keep
this item before the full Council.
Financial Planning Manager Brooks explained the City is also
reviewing the cost of service for sewer. The City is reviewing the
cost of services to ensure the customers are paying for the services
provided. The sewer rates are based on the average water
consumption during the winter since the City does not have a
method of reading the amount of waste water that goes through the
sewer system. Items for the Council to consider in the future is an
increase to non - single family residential base and usage charges.
Financial Planning Manager Brooks stated the FSC
recommendation is for the City to eliminate the non - single family
base rate and have an un- discounted rate per ESU equal to the
single family rate, and updating the non - single family rate credits.
Financial Planning Manager Brooks stated the
department is seeking for recommendations and policy guidance for
a future meeting. Should the rates be equitable or is some inequality
acceptable if it promotes City objectives such as economic
development, what rate changes should be addressed now versus
being considered during he next ratemaking processes.
C. Ordinance No. 6556 (10 Minutes) (Snyder /Gaub)
An Ordinance of the City Council of the City of Auburn, Washington,
amending Auburn City Code Chapter 2.94 entitled "Citizen's
Committee for Transportation, Transit and Trails" for the purpose of
revising the code language and creating a new Transportation
Advisory Board
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Director Snyder explained the City is asking to change the make
up of the Transportation, Transit and Trails Advisory
Committee. Staff is asking to increase the membership to 15
members including specific special interest and
advocacy members.
Councilmember Wagner noted he believes the committee should
meet at a minimum every two months. Councilmember DaCorsi
questioned requiring having the full 15 members. He asked for the
ordinance to be amended to be more flexible in the number of
members. Director Snyder explained the size is needed due to the
issues and scope of items before the Committee. Councilmember
Wales stated if the size does not work then the Council could adjust
it in the future. Mayor Backus explained the frequency of the
meetings will have some flexibility depending on the complex issues
before the committee. The size of the Committee is needed due to
the complexity of issues. Director Snyder explained the Committee
will be advising staff and the Mayor; staff will compile the information
and provide the recommendation to Council. Councilmember
Wagner asked for this Ordinance to be reviewed annually to see
how the size and function is working. Mayor Backus requested
Council allow the Committee to start with 15 members, and if
needed they can come back for amendments.
D. Economic Development Update (10 Minutes) (Hursh)
Economic Development Manager Lein reviewed the City's
Sustainable Growth Plan. He reviewed the year end numbers for
permitting in single family housing, commercial permits, new
business licenses , real estate excise tax and sales tax revenue. He
reviewed the top 10 employers in 2014 including the Boeing
Company, The Outlet Collection and the Auburn School District.
Economic Development Manager Lein stated it is important to help
business attain the information on how to stay up to date on
accounting process, laws and technology. The City has provided a
Business Development Workshop series for local businesses.
The economic development goals are to produce a robust business
workshop series, market the community as the "Place to do
Business ", continue to recruit and support development in our
Station District, implement the Downtown Fagade Improvement
Program, development of a 10 year Economic Strategic Plan, move
forward activities in our Innovation Partnership Zone, continue and
expand the weekly networking event.
IV. OTHER DISCUSSION ITEMS
There was no other discussion.
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V. ADJOURNMENT
There being no further discussion, the meeting adjourned at 7:52 p.m.
APPROVED this day of - , 2015.
HOLMAN, DEPUTY MAYOR Shawn Campbell Depu y City Clerk
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