12/13/2011 Finance Committee MinutesFINANCE COMMITTEE MEETING MINUTES
December 13, 2011
Councilmembers Present Staff Present
Councilmember Petso Shawn Hunstock, Finance Director
Councilmember Buckshnis Al Compaan, Police Chief
Mayor Dave Earling Deb Sharp, Accountant
Carrie Hite, Interim Human Resources/Parks &
Public Present Recreation Director
Ron Wambolt Carl Nelson, CIO
Bruce Witenberg Gerry Gannon, Assistant Police Chief
Phil Williams, Public Works Director
MaryAnn Hardie, Human Resources Manager
Councilmember Petso called the meeting to order at 6:00 p.m.
A. Non -Represented Employee Compensation Ordinance
Interim Human Resources/Parks & Recreation Director Carrie Hite explained staff discovered that a
1.5% COLA for non -represented employees was included in the 2011 budget that was approved by
Council. It has been the City's past practice to bring an ordinance to the Council with, 1) the
compensation survey and adjustment to the bands, and 2) award of an annual COLA. She suggested
bringing the 1.5%COLA to the Council as a separate issue and not adjusting the bands or conducting
any surveys because that is being done by the compensation consultant. The SEIU and Teamsters
bargained for and received a 1.5% COLA and there are compression issues between supervisors and
employees. For consistency and equity sake, the Mayor and staff recommend approval of a 1.5%
COLA for non -represented employees. Councilmember Buckshnis expressed her displeasure with the
bands and her preference to wait until the compensation study has been completed.
Mayor Earling strongly supported implementing a 1.5% COLA for non -represented employees,
viewing it as a matter of equity. Councilmember Petso agreed with Councilmember Buckshnis, but
disagreed it was an equity issue because the unions bargained for their COLA. If a COLA for non -
represented employees is determined to be warranted, it can be awarded retroactively after the salary
survey is completed.
Mr. Hunstock explained because funds were appropriated for the non -represented employees' COLA
in the budget, the Mayor has the authority to implement it January 1 even if Council does not pass the
non -represented employee compensation ordinance.
Ms. Hite reported the compensation consultant developed four baskets of comparator cities that will
be discussed with Council on December 20. (1) The cities that SEIU and Teamsters use, (2) four
cities above and four cities below Edmonds' population, (3) cities statewide with a population of
40,000 with cost of living adjustments, and (4) the original list minus the big cities plus some smaller
cities. Mayor Earling expressed concern with using eastern Washington cities as comparators due to
the differences in cost of living and standards of living in eastern Washington. He felt the most
relevant cities were in the Puget Sound basin. Councilmember Petso agreed.
Action: Forward to full Council. Finance Committee recommends delaying consideration of the non -
represented employees' 1.5% COLA until the compensation study is completed.
12-13-11 Finance Committee Minutes,
B. Holiday and Kelly Day Buy Back EPOA and Law Support
Ms. Hardie explained as required by the EPOA contract, every year on or before December 1 officers
are paid for holiday hours not scheduled/used and for Kelly hours. Chief Compaan explained Kelly
days are compensation for hours worked over 2080/year due to alternate work schedules.
Action: Forward to Consent Agenda
C. Reserve Policy
Mr. Hunstock reviewed the proposed reserve policy, explaining this is the approximate policy
implemented in Tukwila, and funds a 16% reserve over 4 years. The policy contains provisions
regarding how the funds can be used, how the fund is replenished and maximum transfer amounts.
The proposed policy includes an 8% General Fund contingency reserve and an 8% risk
management/capital facilities reserve for a total of 16%. He also suggested consideration be given to
a 20% enterprise fund reserve policy. Discussion followed regarding existing reserves, the reserve
percentage used by other cities, whether to separate the reserves, and proposed amounts in the
ordinance. Mr. Williams commented on the need for a utility capital asset reserve.
Action: Finance Committee to review policy again in January
D. Investment Policy
Mr. Hunstock reviewed the proposed investment policy that is based on the model investment policy
from Washington Municipal Treasurers Association. The Association will review and certify cities'
investment policies. The list of authorized investments is from the RCW.
Action: Finance Committee to review policy again in January
E. Amendment #16 to Seattle Fiber Partners Agreement
Mr. Nelson explained this is the first of three amendments; two additional amendments will be
presented next month. The amendment adds Edmonds, Shoreline, US Coast Guard, Port of Seattle,
and FBI to the Seattle Fibers Partners Agreement.
Action: Forward to Consent Agenda.
F. General Fund Update —October 2011
Mr. Hunstock reviewed the General Fund update, highlighting revenues and expenditures that are
over and below budget including sales tax, telephone utility tax, license and intergovernmental and
goods and services, salaries/wages and benefits. He pointed out the report now reflects fund balance
rather than working capital.
Action: Information only.
G. Public Comments - None
Adjournment — The meeting adjourned at 7:06 p.m