FC030921FINANCE COMMITTEE MEETING
March 9, 2021
Elected Officials Participating Virtually
Councilmember Vivian Olson
Councilmember Diane Buckshnis
CALL TO ORDER
Staff Participating Virtually
Dave Turley, Finance Director
Jeff Taraday, City Attorney
Phil Williams, Public Works Director
Scott Passey, City Clerk
The Edmonds City Council virtual online Finance Committee meeting was called to order at 6:00 p.m.
by Councilmember Buckshnis.
2. COMMITTEE BUSINESS
1. Resolution adopting Electronic Signatures Policy and Budget Authorization
Mr. Passey explained the City is allowed to use electronic signature platforms unless federal or state
law requires a wet signature. The primary intent is to use electronic signatures on outside contracts.
Electronic signatures must be given the same legal effect as a wet signature. Given changes in the
way public agencies are doing business during a worldwide pandemic, use of electronic signatures is
very commonplace. To use electronic signatures, an agency must first adopt a local policy. The
packet contains a boilerplate policy used by several other cities authorizing an electronic signature
platform. He favors DocuSign as they have the most market share among local government agencies.
The annual cost is $3200-$5200; he anticipated the City's needs could be met by the lower cost
product. He recommended adopting the policy on a future Consent Agenda. The cost will be included
in a future budget amendment.
Questions and discussion followed regarding DocuSign, effective date of the resolution, the policy as
an attachment to the resolution, resolutions are not codified, and the remote notarization policy.
Action: Schedule on upcoming Consent Agenda.
2. Job Order Contracting
Mr. Williams explained this item is authorization to issue an RFP to develop, implement and
administer a job order contracting (JOC) program for the City. Several other cities including Shoreline,
Everett, and Tacoma utilize JOCs. JOC was established as a procurement method by the legislature
in 2019. Once the City selects a JOC firm, there can be three JOC contractors that specialize in
certain areas. He described the JOC process for developing project proposals, explaining it is similar
to an ESCO project except the administrator is a private company working on the City's behalf. The
original dollar limits established by the legislature have been increased and are expected to be
increased against this year (current limits are $500,000 for a single job and $3M for the year). The
City likely will not reach those limits as the plan is to start small. The price provided by the JOC is
guaranteed and is based on a national database, RSMeans, that has costs by region including the
Puget Sound area. JOC would allow work to get started more quickly. He was not aware of any
downsides to the program. The purchasing policy was previously updated to allow JOC and a
presentation was made to the PPW Committee tonight. The contract for the JOC administrator will
come to Council for approval.
03/09/21 Finance Committee Minutes, Page 2
Questions and discussion followed regarding whether in-house staff could coordinate JOCs instead of
contracting for a contracting officer, benefits of a JOC overseeing smaller projects, and ability for the
City to try JOC and not continue if it doesn't work out.
Action: Schedule on upcoming Consent Agenda
3. January 2021 Monthly Financial Report
As there was not a lot to talk about for one month Mr. Turley provided background on the 1 % limit on
property tax increases, a limit that was enacted 20 years ago. He displayed graphs illustrating the
effect the 1 % limit has had on the City's finances:
• Graph of property tax growth 2010-2020 - actual collections versus CPI-U
o Conclusion: Property tax have grown slower than inflation
• Graph of sales and use tax growth 2010-2020 - actual collections versus CPI-U
o Conclusion: Sales and use tax have grown faster than inflation
• Graph of collections compared to inflation (annual difference and cumulative difference)
o Conclusion: Sales tax revenue has made up for the dollars left on the table by the 1 %
property tax limit ($3M over 10 years)
Mr. Turley highlighted the following in the January 2021 Financial Report:
• REET: January budget was $195,000; actual was $625,840
• Sales tax: January budget was $661,963; actual was $774,198
Questions and discussion followed regarding reasons for increased sales tax, facilities maintenance
expense in late 2020, the City's investment portfolio, and new buildings with MFTE that do not pay
property taxes.
Action: Forward to upcoming Consent Agenda
4. PFD Financial Presentation
ECA Director of Operations Matt Keller, ECA Board Member and Chair of Admin/Fin Committee Rick
Canning, Executive Director Joe Mclalwain, and EPFD Board President Dave Brewster were present.
Mr. Keller reviewed the EPFD Income Statement, highlighting 2020 total net surplus of $228,000,
sales tax revenue, grants received for capital projects, cost savings in payroll (staff's participation in
shared work program cut payroll 30%), and contributions that exceeded budget and the prior year's
contributions.
Mr. Keller reviewed the 2021 Operating Budget which assumes reduced activity through September.
Revisions to the budget are anticipated due to changes in the state's phases, additional fundraising
activities, and grants. He reviewed the EPFD/ECA monthly cashflow projection for 2021 highlighting
revenue/receipts, expenses/disbursements, non -operating, and potential initiatives to eliminate
negative cash position.
Questions and discussion followed regarding bond payments, what constitutes other income, EPFD
not qualifying for a PPP loan as a municipal entity, potential for a SBA Shuttered Venue Operators
Grant, lead time required to book and market quality performances, plans for a spring fundraising
event, summer programming, and potential uses of the SBA grant.
Action: Information only. Committee requested the EPFD return to the April Finance Committee to
discuss refinancing 2012 bonds.
3. ADJOURN
The meeting was adjourned at 6:58 p.m.