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04/12/2011 Finance Committee MinutesFINANCE COMMITTEE MEETING MINUTES April 12, 2011 7:07 p.m. Present: Councilmember Petso Councilmember Bernheim Staff.- Carrie Hite, Parks and Recreation Director Carl Nelson, CIO Public: Ron Wambolt Roger Hertrich Bruce Witenberg Councilmember Petso called the meeting to order at 7:07 p.m. in the Jury Meeting Room. B. Discussion on Park Impact Fees Ms. Hite explained an impact fee is a fee charged by a city or county to developers to pay the costs of providing public facilities or improving existing ones needed as a result of the new development. She emphasized impact fees could only be used for facilities needed for new growth. For Edmonds, anything in the Park, Recreation and Open Space Plan could not be funded by a park impact fee; a new plan would need to be developed to define facilities needed for new development. She provided a range of park impact fees in other jurisdictions and provided the formula for calculating park impact fees: 1. Value of parks & recreation inventory divided by current population = capital Investment per person 2. Capital investment per person multiplied by forecast population growth = value needed for growth 3. Value need for growth less value of existing capacity = investment needed for growth 4. Investment needed for growth less city investment for growth = investment to be paid by growth 5. Investment to be paid by growth multiplied by growth population = growth cost per person 6. Growth cost per person multiplied by average person per dwelling unit = impact fee per dwelling unit Ms. Hite provided a comparison of Edmonds' residential development history and estimated impact fee projections for 2007-2010 (using Mukilteo's impact fee amount). She noted a teardown is not subject to a park impact fee unless it is replaced by more than the original density. Councilmember Petso summarized based on the estimates, had the City been charging a park impact fee since 2007, the City would have approximately $300,000 to invest in recreational facilities within 6 years of the date they were collected. Ms. Hite summarized park impact fees are one tool; she encouraged the Council to consider other tools such as establishing a metropolitan park district, park levy or bond, etc. Councilmember Petso asked whether the City's Park, Recreation and Open Space Plan was written prospectively and accounted for growth. Ms. Hite explained the City's Plan was deficit -based rather than growth -based. Councilmember Bernheim expressed his support for fees on new growth to pay for services. Action: Ms. Hite will develop estimates that could be used to calculate an impact fee for presentation at the May Finance Committee meeting. She will also research statutory requirements for establishing a park impact fee. Finance Committee Minutes, Page 2 A. Quarterly Resort Reaardina Fiber ODtic ODDortunities Mr. Nelson reviewed Fiber Project Costs 2006-2010 and Return on Investment. Staff is pursuing local private businesses who are interested in fiber optics. The ECA and the Port are interested in connecting. A contract for administrative services has been presented to SNOCOM; staff is awaiting their response. The return on investment is on track; breakeven approximately April 2012. One unexpected expenditure in 2010 was a $2500 permit to cross Sound Transit property to run fiber to the Port. Sound Transit required the use of their contractor who quoted the project very high ($41,000 versus $5,000-$12,000 estimate) so that is not being pursued. This will delay hooking up the Port. Mr. Nelson reported the argument before the State Court of Appeals occurred in January and an opinion is expected June/July. Action: Schedule Quarterly Report on the Consent Agenda C. Monthly General Fund Update No representatives from the Finance Department were present. Action: Recognizing that this is at least the second month that a report has not been provided, Councilmember Bernheim offered to speak with Mayor Cooper about having a Finance Department representative attend the next Finance Committee meeting. D. Update on Financial Policies and Reportin_g No representatives from the Finance Department were present. Councilmember Petso relayed the origin of this item was an email from Councilmember Buckshnis asking whether the financial policies should be postponed until a new Finance Director is hired. Councilmember Petso preferred to take advantage of whatever Mayor Cooper and Councilmember Bernheim developed with former Finance Director Lorenzo Hines as well as the expertise of the City's temporary Finance Director and a new Finance Director. Action: Councilmembers Petso and Bernheim will schedule a meeting with the City's temporary Finance Director Jim Tarte and Mayor Cooper to outline financial policies and implementation of current policies. E. Public Comments Ron Wambolt, Edmonds, commented having no one here from Finance was a missed growth opportunity for staff members. He recalled former Finance Director Kathleen Junglov often had finance staff accompany her to Finance Committee meetings. Bruce Witenberg, Edmonds, Board Member of Visiting Nurse Services of the Northwest, reported Dan Dixon, Swedish VP of External Affairs, indicated Swedish Edmonds is interested in talking with the City about the Strategic Plan and fiber optics. Mr. Nelson reported when Swedish was planning the purchase of Stevens, they already had contracts with other vendors for high speed broadband. Those contracts have 1-2 years remaining; staff is discussing opportunities with them related to fiber optics. Adjournment— The meeting adjourned at 7:38 PM.