HomeMy WebLinkAbout06-11-2018 Minutes _.......... ......................._.........................................__..................................................._.........................................................................................._..................................................................................................___....__.......__....._..........__.............................._..........._.........................
City Council Study Session Finance -
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I. CALL TO ORDER
Deputy Mayor Bob Baggett called the meeting to order at 5:30 p.m. in the
Council Chambers of Aubum Gity Hall, 25 West Main Street in Aubum.
A. Roll Call
Councilmembers present: Depuiy Mayor Bob Baggett, Claude DaCorsi,
John Holman, Bill Peloza, and Largo Wales. Councilmembers Larry
Brown and Yolanda Trout-Manuel were excused.
Mayor Nancy Backus and the following department directors and staff
members were present: Finance Directo� Shelley Coleman, Assistant ',
Director of Engineering Services/City Engineer Ingrid Gaub, Utilities ',
Engineering Manager Lisa Tobin, Financial Planning Manager Bob '
Brooks, Assistant Chief of Police Bill Pierson, City Attomey Daniel B. I
Heid, Innovation and Technology Director Paul Haugan,Assistant Finance
Director Kevin Fuhrer, Compensation and Employee Relations Manager
Aaron Barber, Traffic Engineer James Webb, and City Clerk Danielle
Daskam,
I I. ANNOUNCEMENTS, REPORTS,AND PRESENTATIONS
There was no announcement, report or presentation.
III. AGENDA ITEMS FOR COUNCIL DISCUSSION
A. Utility Rate Study Presentation (Coleman)(20 Minutes)
Finance Director Coleman infroduced the consultants from the FCS
Group,Angie Sanchez, Principal, and Sergey Tarasov, Project Manager. '
Ms. Sanchez and Mc Tarasov reviewed the cost of senrice analysis, rate '
design and bill impacts for each utility and each altemative rate structure. �
The overall revenue increase needs are:
UTILITY 2019 2020 2021 2022
Water 3.4% 3.4% 3.4% 3.4%
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Sewer 2.4% 2.4% 2.4% 2.4%
Stotm 1.7% 1.7% 1.7% 1.7%
The sewer cost of service results indicate single family customers are
paying 104 percent of full cost of service while non-single family
customers are paying 97 percent of full cost.
Sewer rate design considerations included:
o One proposed rate structure
� Fix inequities by moving rates toward cost of senrice
� Achieve full cost of senrice by 2022
The sewer rate design proposal provides for a 1.1 percent increase for
single family customers for each year 2019 through 2022. Non-single
family customers woutd receive a 3.5 percent increase for each year 2019
through 2022.
Stormwater rate design alternatives include:
o Option 1: COSA Rates
o Fix inequ.ities by reducing the size of non-single family(N6F)
rate credits
o Eliminate the base rate
o Reduce rate for single family, inerease rates for non-single
family
o Can have large impacts on some non-single family customers
o Achieve full cost of service by 2022
e Option 2: One ESU Rate
o Move towards a single rate based on amount of impervious
area(Equivalent Service Unit or ESU)
� Simplify since all customers must meet same stormwater
management requirements
o Grandfather existing non-single family customers until
redevelopment or change of ownei�ship occurs
� Eliminate the base rafe
o Convert all existing customers to "per ESU" rate by 2023
� Most common rate structure approach used by most other
storm utilities
The consultants reviewed the water cost of seniice results and four
altematives for water rate design:
• Option 1: Existing classes-no meter sizes
• Option 2: Condensed classes-no meter sizes
• Option 3: Existing classes-with different per month charges for
each meter size (meter size differential)
• Option 4: Condensed classes-with meter size differential
Meter size differential altematives:
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• Addresses infra-elass equity-larger meters require additional
irrfrastructure up-sizing, higher maintenance and replacement costs
• Customers with larger meters will pay more
The consultant summarized with the following utility options:
e Sewer: Phase in towards COSA by 2022
• Storm: Two altematives for consideration
_ _ _
o Full COSA by 2022
� One ESU charge for all classes by 2023
o Water: Four alternatives for consideration
o Existing classes and account-based rate structure
o Condensed classes, e�sting account-based rate structure
o Existing classes and meter based rate structure
o Condensed classes, meter-based rate structure
Councilmember DaCorsi spoke in favor of simplifying the rates.
Councilmember Wales spoke in favor of phasing in by 2020 and the ESU
charge and condensed rates.
Finance Director Coleman proposed Option 1 for Storm to get to full cost
of service by 2022 and one ESU by 2023. For Water, Director Coleman
recommended existing classes and the meter based rate structure moving
towards a condensed class and a meter-based rate in 2023.
Councilmember Peloza and Holman concurred with Finance Director
Coleman's comments.
B. SR18 & SR164 EastAuburnAccess (Gaub)(30 Minutes)
Jeanne Acutanza of the Transpo Group, consultant for the Muckleshoot
Indian Tribe (MIT), updated the Council on the SR 164 East Aubum
Access - Improved Mobility project. The Council was last updated in the
fall of 2017.
Ms.Acutanza discussed the purpose of the first round of open houses and
outreach for fhe project. At the open houses, the project will be infroduced
to the community, including project history and review of the current
process with the hope to gain feedback and build public interest in the
project. Ms.Acutanza reviewed the elements of the open house. The first
open house will be scheduled this summer.
C. 2019-2024 Transportation I mprovement Plan Annual Update (Gaub)(20 Minutes)
Assistant Director of Engineering Services/City Engineer Gaub presented
a memo addressed to Mayor Backus and City Council from Traffic
Engineer James Webb dated June 8, 2018, regarding arterial preservation
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project summary and the impact of adding the reconstruction of 4th Street
SE befinreen Aubum Way South and M Street SE into the 2019 Capital
Program. Director Gaub also distributed a map of the City of Aubum 2019-
2024 Transportation Improvement Program (TIP)projects.
Assistant Director Gaub reviewed the estimated costs of the 4th Street j
S E reconstruction and the arterial sfreet preservation projects currently j
programmed/planned beiween the years 2018 and 2022. The projects
programmed befinreen 2018 and 2020 have already been awarded federal
grant funds and are committed to being completed within the year of their
awards. Federal grant funding was applied for in 2018 for the 2021/2022
planned projects. These projects were identified as the best scoring
projects based on the grant criteria. The City will find out later this summer
if the grant applications are successful or not.
Assistant Director Gaub advised the 4th Street SE reconstruction project
would cost approximately $4.6 million with $2.4 million needed from the
Arterial Preservation Fund (105). The annual budget for the Arterial
Preservation Fund is approximately $1.7 to $1.9 million, therefore the 4th
Street SE reconstruction would require more than a single year's budget
and other projects, already supported by grants, would need to be
removed.
Traffic Engineer Webb reviewed his 2019-2024 Transportation
Improvement Program Annual Update memo, which was reviewed at the
last Council study session. He noted the projects added to the TI P and
the change in the project numbering conventions.
There was brief discussion regarding TIP I-7, the SE 320th Street/116th
Avenue SE Roundabout project.
Councilmember DaCorsi, chair of the Roads Project ad hoc committee,
talked about the work of the ad hoc committee, which includes reviewing
the TIP projects in detail. Councilmember DaCorsi also spoke about the
need to increase revenue for the Arterial Preservation Fund.
Councilmember DaCorsi requested a list of all street rebuilds needed as
of this date. Assistant Director Gaub reported the State of Our Streets
Report is in process.
D. Ordinance No. 6659 Stay Out of Designated Areas (Heid)(20 Minutes)
An Ordinance of the City Council of the City of Awbum, Washington, amending Section
1.24.010 of the Aubum City Code and creating a new Chapter 9.24 of the Aubum City
Code relating to new gross misdemeanor violations conceming drug-related activities
Deputy Mayor Baggett recessed the meeting at 7:42 p.m. for
approximately eight minutes for a brief intermission. The meeting was
reconvened at 7:53 p.m.
City Attomey Heid presented Ordinance No. 6659, Stay Out of
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Designated Areas, for Council review City Attomey Heid stated the
ordinance has been revised to eliminate areas within the Muckleshoot
Indian Tribe reservation.
In response to Councilmember Peloza's questions, City Attomey Heid
noted ttiat Seetion 9.24.090 of the codified ordinance requires evaluation
and review within 24 months after its implementation. City Attomey Heid
also indicated he would add verbiage to Section 9.24.090(B) for periodic
reports to the City Council.
Counc'ilmember Wales suggested the possibility of SODA signage.
Councilmember Peloza suggested the subject of park rules be included in
an upcoming study session.
IV. FINANCE AND ECONOMIC DEVELOPMENT DISCUSSION ITEMS
At this time, Councilmember John Holman, chair of the Finance and Economic
Development Special Focus Area, presided over the Finance discussion items.
A. Ordinance No. 6684 (Coleman)(20 Minutes)
An Ordinance of the City Council of the City of Auburn, Washington, amending
Ordinanee No. 6621,the 2017-2018 Biennial Budget Ordinance, as amended by
Ordinance No. 6646, Ordinance No. 6656, Ordinance No. 6665, Ordinance No. 6666,
and Ordinance No. 6680, authorizing amendment to the City of Aubum 2017-2018
Budget as set forth in Schedule "A„and Schedule "B"
Finance Director Coleman presented Ordinance No. 6684, representing
budget amendment number six. The budget amendment includes
adjusted fund balances to match actual 2018 fund balances. The
amendment also includes a new poliee officer to backfill for the school
resource officer, three new employees to manage and operate the Aubum
Municipal Airport, and temporary Records Clerk for the City Clerk's
Office. The amendment also includes acknowledgement of grants and
transfer of$1.5 from the General Fund to the Cumulative Reserve Fund.
B. Ordinance No. 6682 (Coleman)(15 Minutes)
An Ordinance of the City Council of the City of Aubum, Washington, establishing Multi-
Year Capital Budgeting, repurposing certain funds as Special Funds within the context
of RCW 35A.34.270, and establishing guidelines for transferring funds between
projects within capital funds
Finance Director Coleman presented a PowerPoint on the multi�apital
budgeting process. The multi-capital budgeting process will eliminate the
need for annual project carry forwards and provide a mechanism to allow
movement of budget from completed projects that were under budget to I
ongoing projects that are expecfed to go over budget. Ordinance No. '
6682 will establish the multi-capital budgeting process.
C. Position Budgeting (Coleman)(15 Minutes)
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Finance Director Coleman presented a PowerPoint relating to fhe
proposed changes to position budgeting for support departments.
Currently, salary and benefit budgets for employees in General Fund
support departments (Human Resources, Finance and Legal) are partially
allocated to other funds reflecting services they provide to those funds. As
a result, department budgets don't show full staff costs 6ecause a portion
of these costs are included in the budgets of "receiving" funds. To more
effeciively manage these budgets, it is proposed that each employee in
support departments be fully accounted for in the departmental budget and
that an interfund charge be assessed to other funds for services provided.
Support department budgets will show 100 percent of personnel costs that
they manage and receiving funds w'ill continue to pay their fair share of
support costs. The net result will be a zero impact on fund balances for all
funds.
V. OTHER DISCUSSION ITEMS
There was no other discussion.
VI. NEW BUSINESS
A. Executive Session
At 5:31 p.m. and immediately after roll call, Deputy Mayor Baggett
recessed the meeting for approximately ten minutes in order to discuss
potential litigation pursuant to RCW 42.30.110(1)(i). City Attomey Heid,
Assistant Direetor of Engineeririg Senrices/City Engineer Gaub, and
Compensation and Employee Relations Manager Barber attencied the
executive session. No action was anticipated as a result of the executive
session.
Deputy Mayor Baggett reconvened the meeting at 5:43 p.m.
VII. MATRIX
A. Matrix
Councilmembers reviewed the matrix. Deputy Mayor Baggett noted three
items do not have scheduled dates for discussion.
City Attomey Heid stated he believes the Human Resources Department
was working on the Consolidated Court Fees presentation.
Councilmember Peloza suggested adding a discussion item regarding
Park Rules to the Municipal Services Special Focus Area.
Councilmember Holman stated all items scheduled for this evening should
be deleted from the matrix and the remaining items under the Finance and
Economic Development Special Focus Area have yet to be scheduled.
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Councilmember DaCorsi reported the Livable Gities discussion item is
scheduled for August 27th and the Airport Advisory Board Update is
scheduled forAugust 13, 2018.
VI I I.ADJOURNMENT
There being no further discussion,the meeting was adjoumed at 8:32 p.m.
APPROVED this 6th day of August, 2018.
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BOB BAGGETT, D P TY MAYOR Dan'ielle Daskam, City Clerk
Agendas and minutes are available to the public at the City Clerk's Offiee, on the City website
(http:/%www.aubumwa.gov), and via e-mail: Complete agenda packets are avai/able forreview
atthe City Clerk's Offrce.
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