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HomeMy WebLinkAbout03/17/2003 Work Session . . . ,. MINUTES OF THE WORK SESSION OF THE SPRINGFIELD CITY COUNCIL HELD ON MONDAY, MARCH 17, 2003 The Springfield City Council met in work session at Springfield City Hall, Council Meeting Room, 225 Fifth Street, Springfield, on Monday, March 17,2003 at 6:00 p.m., with Mayor Leiken presiding. ATTENDANCE Present were Mayor Leiken and Councilors Ballew, Burge (by conference phone) Fitch, Ralston, and Woodrow. Also present were City Manager Mike Kelly, Interim Assistant City Manager City Manager, and members of staff. 1. 2002 Annual Financial Report and Management Letter. Accounting Manager Valerie Warner introduced the item. She noted that Chris Gardner of Moss Adams would make the presentation on the financial report and management letter. She provided brief background on Mr. Moss's credentials. Ms. Warner reviewed significant accomplishments in the Accounting Division: The City realized significant cost savings in the audit contract in fiscal year 2001 by doing a portion of the work by drafting its own financial statement The negotiation of a two-year contract extension with Moss-Adams in 2002 included bringing a production element of the work in-house, saving an additional $20,000 The City's audit report would be posted on the City's Web site later in the week Ms. Warner called attention to the footnote related to a legal budget violation in fiscal year 2002. The nature ofthe violation was a pass-through item in departments' budgets for fringe benefits. The Secretary of State's Office may detect the violation in its review and inform Mayor Leiken via letter. Councilor Fitch commended staff for the work it did in straightened budget times. Mr. Gamer provided a presentation on the City's 2002 Annual Financial Report and Management Letter. Copies of Mr. Garner's PowerPoint presentation were provided to the City Council. Mr. Garner introduced Susan Eicher of Moss-Adams, who assisted in the effort. First, Mr. Gamer clarified that the budget footnote was not unusual and he anticipated no problems. He then provided details on the mechanics of the audit process. Mr. Garner reported that the City's fmancial statements were materially correct. Responding to a question from Councilor Ballew, Mr. Garner concurred that many of the requirements had been around for some time but were largely informal. The SEC was now making the requirements more formal, and he suggested that the audit had gone beyond the requirements for the take of thoroughness. Mr. Gamer said that it was the consultant's unqualified opinion that there were no material errors in the fmancial report. He noted the management letter offered some suggestions for controls. First, in dealing with cash receipts from remote departments, the City needed to better ensure that 'Springfield City Council Work Session Minutes - March 17,2003 Page - 2 . the correct rates were being collected, and to that end he recommended that the City, on a test basis, pick a sample of transactions to ensure correct rate was being collected. Second, the City would need to be in compliance with the federal GASB 34 regarding full accrual basis accounting. Mr. Gamer concluded that there were no reportable conditions found. He thanked Ms. Warner and her staff for their assistance. He said that Ms. Warner was very open to input. Mr. Gamer called attention to a series of graphs related to City revenues and expenditures and briefly noted that trends were generally stable in all revenue accounts. Expenditures were generally consistent. Expenditures and revenues were consistent in the General Fund. He noted the downward trend in revenues in the Road Fund. . Councilor Ballew determined from Mr. Garner that the charges for services included systems development charges but it did not include regional wastewater charges. Mayor Leiken and the council thanked Mr. Garner for his presentation. 2. Council Discussion of Issues Raised in Testimony on Proposed Peace Health Metro Plan and Gateway Refmement Plan Amendments. . .. Planner Colin Stephens was present for the staff reported on this issue. Mr. Stephens noted that the remainder of the testimony and rebuttal testimony from Peace Health had been distributed to the City Council. Deliberations and a decision were scheduled on March 31. He asked councilors if they any further questions at this time, noting that Gary McKenney and Ken Vogeney were both present to answer questions as well. Mr. Stephens said that the responses to the questions asked by Councilors Ralston and Fitch were included in the meeting packet. Mr. Stephens reported on his fmdings on the subject of how other jurisdictions regulate hospital height, information included in the meeting packet. He said that Bend required a conditional use permit for any building over 40 feet high in all zoning districts. Medford sited hospitals in a civic and professional zoning district with an 85 foot maximum height. Salem allowed hospitals in a public health and services zoning district, and they were limited to 70 foot. Corvallis restricted hospitals to residential zones with a height limit of75 feet, which was approved through a discretionary process. Councilor Ballew determined Mr. Stephens had no information about height limits for hospitals in Portland. Councilor Ralston referred to the apparent discrepancy in project costs for the Pioneer Parkway Extension (PPE) as reflected pages 2-1 and 2-2 of the staff notes, and determined from Mr. Amis that the $1 million discrepancy represented the value ofthe right-of-way donated by Peace Health. Councilor Burge commended the staff response to the council's questions. . Councilor Ralston determined from Mr. Amis that Peace Health would pay $7 million for Beltline improvements. Responding to a follow-up question from Councilor Ralston, Mr. Amis .Springfield City Council Work Session Minutes - March 17, 2003 Page - 3 . said that the annexation agreement called for the payment to be made when the initial building permits were applied for. Mayor Leiken asked if the City had any information on the height of Oregon Health Sciences University. Mr. Stephens cautioned the council that the information regarding the subject was not in the record. Councilor Fitch indicated appreciation for the information prepared by staff. ADJOURNMENT The meeting was adjourned at 6:32 p.m. "-'" ATTEST: " Minutes Recorder - Kimberly Young '. ()Lu.l.e . ~~ City Recorder . .