HomeMy WebLinkAbout04-24-2017 Special Ad Hoc MeetingWASHINGTON
CAR TAB AD HOC COMMITTEE
MEETING MINUTES
April 24, 2017 4:00 PM
I. CALL TO ORDER
Deputy Mayor Wales called the meeting to order at 4:00 p.m. in the Council
Chambers, Auburn City Hall.
A. Roll Call
Ad hoc Committee members present: Deputy Mayor Largo Wales,
ex officio; Bill Peloza, Claude DaCorsi, and Bob Baggett
Mayor Nancy Backus, Councilmember John Holman and
Councilmember Trout -Manuel were in attendance, and the
following department directors and staff members were present:
City Attorney Dan Heid, Assistant Director of Engineering
Services/City Engineer Ingrid Gaub, Community Development and
Public Works Director Kevin Snyder, Finance Director Shelley
Coleman, Human Resources and Risk Management Director Rob
Roscoe, and Deputy City Clerk Shawn Campbell.
II. CONSENT AGENDA
A. Minutes of the April 3, 2017 Ad Hoc Committee Meeting
Councilmember Peloza moved and Councilmember DaCorsi
seconded to accept the consent agenda.
MOTION CARRIED UNANIMOUSLY. 4-0
III. COUNCIL AD HOC COMMITTEE DISCUSSION ITEMS
A. Discussion of the Full Spectrum of Issues Regarding the $20
Car Tab Fee
Director Coleman reviewed the funds the City can use for streets.
She reviewed Fund 102, the Arterial Streets Fund, the revenue
sources for the 102 fund are gas tax, grants, transportation impact
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.City -of Auburn Car Tab Ad Hoc Committee Meeting Minutes April 24, 2017
fees and occasionally REET funds; the Local Streets Fund receives
revenue from sales tax received on construction and $50,000.00
annually for the Water, Sewer and Storm funds and occasionally
some REET funds; and the Arterial Street Preservation Fund
receives revenue from a 1 % utility tax from the Water, Sewer,
Storm and Garbage utilities, a 1 % additional utility tax from the
cable TV, electric, gas and phone utility's, grant funding and
occasional REET funds. Many of the revenues that go into the
different funds are restricted and the City must ensure the funds
are spent on appropriate projects that fit all of the restrictions.
Councilmember Peloza asked if the City can take additional funds
from the Stormwater and Sewer funds to put in the Local Street
Funds. Director Coleman stated the Stormwater and Sewer
Departments generate approximately $50,000.00 worth of street
repairs from their activity in the street per year. Any additional funds
would have to coincide with activity in the street.
Councilmember Peloza asked why the REET funds are listed as
occasionally. Director Coleman explained the REET funds are
cyclical and there are times when additional funds are available. A
large percentage of REET funds are obligated to debt service
payments.
Councilmember Peloza requested staff provide the REET 1 and
REET 2 funds for the last 5 years and the expected revenue for the
next 5 years. He would like to know what the funds have been
spent on and what the funds are budgeted for in the future.
Councilmember Peloza asked if the City could raise the fees taken
from the enterprise funds. Director Coleman stated Council can
direct a Larger fee be directed. to the Streets fund but the increased
rate would need to be passed on to the rate payer.
Councilmember Baggett stated the Committee needs to look at
department budgets. There may be cuts in those budgets the City
could use to cover some of the shortfall. Director Coleman stated
Council can direct the funds to where they need them to go. She
noted the major expense in departmental budgets are salaries and
benefits. Councilmember Baggett requested the department
directors bring proposed cuts within their budgets to the next ad
hoc Committee meeting.
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City of Auburn Car Tab Ad Hoc- Committee Meeting Minutes April 24, 2017
Deputy Mayor Wales stated the Committee will need to come up
with different options to find the least impactful way to fund the
roads.
Councilmember DaCorsi asked for clarification on what the
Cumulative Reserve Fund could be used for. Director Coleman
stated that fund can be used for capital projects and revenue
stabilization. The City policy is to keep the Cumulative Reserve
Fund plus the General Fund balance at 25% of the current year
General Fund budgeted expenses. Director Coleman cautioned the
Committee from using the Cumulative Reserve Fund as a standing
revenue source.
Councilmember Peloza requested to have each departmental
budget with all planned capital project and dollar amount
associated with each project brought to the next meeting.
Councilmember DaCorsi stated there is currently a $5 million gap
between what the City has budgeted for roads and what will be
needed per year over the next 20 years to bring the roads to an
acceptable level. He asked what will happen to the roads if any a
portion of the gap is filled. Assistant Director Gaub explained the
department has developed five scenarios with predicted road
conditions over the next 20 years; Scenario 1 assumes the City
funds the roads at the current $2 million resulting in the PCI rating
to fall to a 49, Scenario 2 assumes the City funds the roads at
$2.75 million a year and the roads will be at a PCI of 53 after 20
years, Scenario 3 assumes the City will fund roads at $5.5 million a
year and the roads will be at a PCI of 64 after 20 years, Scenario 4
assumes the City will fund the roads at $6.25 million a year and the
roads will be at a PCI of 66 in 20 years and Scenario 5 assumes
the City will fund roads at $7 million a year and the roads will be at
a PCI of 70 in 20 years. A PCI rating of 0-25 is considered very
poor, a rating of 26-50 is considered poor, a rating of 51-70 is
considered fair and a rating of 71.100 is good. Roads that are new
are rated between 90-100.
Councilmember DaCorsi asked what is the minimum the City can
get_ by with. Assistant Director Gaub stated that question is for
Council to decide what PCI goal they want to set.. Councilmember
DaCorsi stated he wants to make sure the streets are passable and
can be maintained with some level of consistency.
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City of Auburn Car Tab Ad Hoc Committee Meeting Minutes April 24, 2017
Deputy Mayor Wales stated this process may take a couple years
to get to a fully funded program.
Deputy Mayor Wales requested staff bring back departmental
budgets with proposed cuts, the REET 1 and REET 2 funds and
what would be generated by a .5% increase to the utility tax.
B. Future Meetings
The Committee discussed dates of future meetings. The
consensus was to hold meetings on the first and third Monday of
each month at 6:00 p.m.
IV. ADJOURNMENT
There being no further business, the meeting adjourned at 5:02 p.m.
APPROVED THIS 1St DAY OF May, 2017.
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c
awn Campbell, Deputy City Clerk
City of Auburn Car Tab Ad Hoc Committee Meeting Minutes. _ April 24, 2017
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