12/14/2010 Finance CommitteeFINANCE COMMITTEE MEETING MINUTES
December 14, 2010
7:03 PM
Present: Councilmember Buckshnis
Councilmember Plunkett
Council President Bernheim
Staff: Stephen Clifton, Community Services/Economic Development Director
Sandy Chase, City Clerk
Debi Humann, Human Resources Director
Cindi Cruz, Executive Assistant
Ed Siebrel, Engineering Technician
Larry LaFave, Maintenance Worker
Public: Ron Wambolt
Roger Hertrich
Bruce Witenberg
Councilmember Plunkett called the meeting to order at 7:03 PM.
A. Monthly Financial Report
Due to workload priorities related to the 2011 City Budget, the November GF report will be released to
the public and the Finance Committee toward the end of December 2010.
Councilmember Buckshnis commented she has provided staff numerous examples of other cities'
reports. The Council needs to ensure that the ordinance is complied with next year.
C. Review and Approval of New Health Insurance Plans
Human Resources Director Debi Humann distributed an updated memo regarding the Proposed City -
Wide Health Insurance Plan Changes dated December 8, 2010. The City reviewed its health
insurance as a result of AWC's announcement that Regence Plan A and Group Health will be
discontinued effective January 1, 2012. The memo contains details regarding the steps the Health
Benefit Committee (HBC) took in their review.
The HBC recommends allowing all City employees to self-select to one of the two AWC plans as
follows:
• The $10 Group Health Co -Pay Plan which replaces the $5 Group Health Co -Pay Plan
• The HealthFirst Plan which replaces Plan A
The estimated total premium savings of changing to these two plans is $30,000/month or
approximately $350,000/year. This does not reflect the employee's premium share. It also does not
reflect premium costs for LEOFF 1 members as they will remain on Plan A. The timing of the change
to the new plans for union employees will be negotiated.
Ms. Humann introduced the members of the HBC: Larry LaFave, Teamsters, and Ed Siebrel and
Cindi Cruz, SEIU. Mr. Siebrel commented given the research the HBC did, this is probably the best
package the City could get in the short term from AWC in terms of cost and benefit. He advised the
Finance Committee Minutes, Page 2
HBC also explored self-insurance; although there are significant long term cost savings, there are
additional, short-term, upfront expenses of approximately $1 million/year.
The Committee agreed to forward this item to the full Council as soon as practical with no
recommendation.
B. Resolution Establishina Fees for the Coavina and Transcription of Public Records
City Clerk Sandy Chase reported the City Code requires fees be updated periodically. The City is
restricted by RCW 42.56 regarding charges for public records. She offered to research whether the
City could charge more if a member of the public requests a paper copy of a document that is
available on the website. The goal is to have as many City documents available online to allow the
public to conduct their own research.
This item was approved for the Consent Agenda. Ms. Chase advised she would include the results of
her research in the agenda memo.
D. Interlocal Agreement Authorizinq Establishment of the Snohomish County Tourism Promotion
Area
Community Services/Economic Development Director Stephen Clifton introduced Amy Spain,
Executive Director, Snohomish County Tourism Bureau, and Doug Bartell, General Manager,
downtown Everett Holiday Inn and Board Member of the Snohomish County Tourism Bureau,
Snohomish County Lodging Association and Snohomish County Sports Commission.
Mr. Clifton explained the Snohomish County Tourism Promotion Area (TPA) will collect $1 per room
per day from hotels in the targeted area which will be used to promote Snohomish County.
Ms. Spain advised this initiative is supported by the lodging industry and cities. The TPA is limited to
nine cities because it is designated for hotels with 50+ rooms. Mr. Clifton referred to the three zones
(A, B & C) referenced in the Interlocal Agreement. The $1 fee will be collected only in Zone A, hotels
with 50+ rooms. The only hotel in Edmonds with 50+ rooms is the Harbor Inn.
This item was forwarded to the full Council.
E. Public Comments
Ron Wambolt, Edmonds, urged the Finance Committee to inform Administration that they expect to
have reports provided in a timely manner, noting there have rarely been timely reports provided to the
Finance Committee during the past year.
Bruce Witenberg, Edmonds, commented although there were savings from the new healthcare
proposal, he anticipated significant cost increases in 2012. He suggested consideration be given to
retaining any savings.
Roger Hertrich, Edmonds, posed the following questions: 1) has the Council received the November
financial report? Councilmember Buckshnis answered no; and 2) has the Finance Director provided
information regarding the ability to switch funds between Fund 125 and 126? Mr. Hertrich suggested
the City have a representative on the Snohomish County Tourism Bureau and/or establish a
City/Port/Chamber Tourism Committee.
Adjournment — The meeting adjourned at 7:34 PM.