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FC020921FINANCE COMMITTEE MEETING February 9, 2021 Elected Officials Participating Virtually Staff Participating Virtually Councilmember Vivian Olson Dave Turley, Finance Director Councilmember Diane Buckshnis Phil Williams, Public Works Director Angie Feser, Parks, Rec. & Cultural Serv. Dir. Shannon Burley, Dep. Parks, Rec. & Cultural Serv. Dir. Shane Hope, Development Services Director Scott Passey, City Clerk CALL TO ORDER The Edmonds City Council virtual online Finance Committee meeting was called to order at 6:00 p.m. by Councilmember Buckshnis. Council Reimbursement Request for $337.90 was added as Agenda Item 5. 2. COMMITTEE BUSINESS 2. Close Fund 617, Firemen's Pension Fund Mr. Turley explained state pension plans for police and firefighters began in 1970; police and firefighters who retired before 1970 were not covered by a pension but were provided retirement benefits which were paid from the General Fund and funds provided by the state via a tax on fire insurance premiums. For accounting purposes, the funds from the state were treated as revenue for Fund 617. The state auditor recently changed this and stated the fire tax can be spent on anything so it is General Fund money. A budget amendment in April will move funds from Fund 617 into the General Fund. Action: Forward to Consent Agenda and budget amendment in April 1. Edmonds Solar Cooperative Proposed Asset Purchase Mr. Williams provided background on the Edmonds Solar Cooperative (ESC) that obtained funding (tax credits) to build and operate the solar project on the Frances Anderson Center roof via a lease with the City. At that time, to qualify for the tax credits, the panels had to be purchased from businesses in Washington. There was only one panel manufacturer in Washington Those panels have not held up well over the 10 years; the initial 23 kW capacity is now down to 9.6 kW. The ESC has offered to sell the system to the City for $5,000. His research found a new 9.6 kW system would cost $26,000-$28,000 and a 10-year old system (assuming a lifespan of 25 years) would cost about $17,000-$18,000. The City is the likely successor to the system. The funding will come from capital renewal funding in the Facilities Department. Discussion followed regarding the contract releasing everyone who purchased a "Sun Slice." Action: Confer with Council President regarding scheduling 3. Preliminary December 2020 Quarterly Financial Report Mr. Turley highlighted: Finished year surprisingly well 02/09/21 Finance Committee Minutes, Page 2 • Report is very similar to last month • Sales tax 1.6% less than 2109 • Intergovernmental revenue up due to CARES funds • Other revenue categories lower than 2019, but not much lower • General Fund expenditures $44M, 12% under budget • General Fund spent 88% of annual budget • Special revenue funds 66% of budget • REET budget = $1.4M for each, revenues = $1.7M • January REET $300,000 over 2020 Questions and discussion followed regarding a Puget Sound Business Journal article regarding a Seattle company that relocated to Edmonds, amount in the Fireman's Pension Fund, investment interest, sources of sales tax revenue, potential new CARES Act funding, and all categories of sales tax higher in 2020 than 2019 except restaurants and bars, hotel/motel and healthcare. Action: Presentation to full Council 4. 2021 Carryforward Budget Amendment Mr. Turley highlighted carryforward budget amendments: • Unfreezing five park maintenance positions that were not included in the 2021 budget • Ebb Tide Litigation Professional Witness Fees, trial postponed due to COVID-19 • Portico sign fabricated in 2020, delivery delayed due to COVID-19 • Watershed Company's work on developing a Street Tree Plan delayed due to COVID-19 • Climate Goals Project - delayed due to COVID-19 • Climate Action Plan Update (ESA) - delayed due to COVID-19 • Climate Action Plan Public Engagement (Cascadia) - delayed due to COVID-19 • Code Research (BHC) • NR Employee Salary Study funds • City Park Walkway Pedestrian Safety Project • 2020 Traffic Calming Program • 2020 Guardrail Program • Phase 11 Waterline Replacement • Phase 10 Waterline Replacement • Swedish & 76th Waterline Replacement • NPDES Pro Software Purchase • Dayton Street Stormwater Pump Station • Seaview Park Infiltration Facility Phase 2 • Lake Ballinger Regional Facility Pre -Design Phase • WWTP Capital Carryforward • Cured In Place Pipe Sewer Rehab Phase 2 • Police patrol vehicle 525-POL replacement funds • Waterfront Redevelopment • Civic Center Playfield — funds not spent in 2020, expected to come in 2021 • 84th Ave. Overlay from 220th St. SW 212th St. SW • 2020 Pavement Preservation Program • Dayton Utility Replacement Project • 2019 Sewer Replacement (Phase 7) Questions and discussion followed regarding whether other positions will be unfrozen, incorrect street trees planted on Walnut, and COVID impacts that resulted in carryovers. 02/09/21 Finance Committee Minutes, Page 3 Action: Forward to Consent Agenda 5. Council Reimbursement Request for $337.90 Councilmember Olson explained she brought this to the Administration's attention before the Police Chief appointment was made and referenced this court testimony. She requested the court testimony and was told the City did not have it; she thought the Council needed that document so she ordered it. There are differences of opinion regarding the regulations for reimbursement and she asked if the regulations in Section 2.25 needed to be changed. Mr. Taraday explained as written, the code puts the decision of what is a reimbursable expense in the hands of Council President subject only to the Council's discretion. If the Council wants more clarity and predictability regarding what expenses are reimbursable and not leave that up to one individual's discretion, the code needs to be revised. Councilmember Buckshnis inquired about the reason for denial. Mr. Taraday said there is no criteria in the code to guide that decision, it is entirely up to the Council President whether to grant or deny an expense. Mr. Turley forwarded him a policy that he had not seen before (it is not in the code) that provides examples of criteria, such as the general reimbursement policy of the Council reads as follows, "the City of Edmonds reimburses its employees and elected or appointed officials for reasonable expenses incurred conducting City business." Another portion of the policy reads, "providing the expenses are prudent and directly related to the individual's service on behalf of the City." Councilmember Olson asked what would be the basis for rejection if all those criteria were met. Mr. Taraday said there is a lot of subjectivity in that criteria so it was not a model reimbursement code and he was unsure that policy was binding on the Council President. Councilmember Buckshnis requested staff send that policy to her and Councilmember Olson. Councilmember Buckshnis offered to assist Councilmember Olson with writing a memo. Action: Schedule for full Council in the future. 3. ADJOURN The meeting was adjourned at 6:57 p.m.