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FC091217FINANCE COMMITTEE MEETING September 12, 2017 Elected Officials Present Councilmember Diane Buckshnis (Chair) Councilmember Dave Teitzel Staff Present Scott James, Finance Director Dave Turley, Assistant Finance Director Jeannie Dines, Recorder The meeting was called to order at 7:32 p.m. in Council Chambers. Discussion regarding the Finance Department position and funding for the Marsh Study was added. 1. July Budgetary Financial Report Mr. Turley reported July's report is very similar to June. He responded to Councilmembers' questions regarding long term debt service payments, revenue from the sale of parking permits, Bird Fest registration fees, early repayment of 2012 LTGO debt, insurance expenditures, Edmonds investment rate of return compared to benchmark, and the Combined Street Construction/Improvement fund balance. Discussion included determining available funding in Council salary and benefits due to the opening in the Council legislative/administrative assistant position, timing of the approval of the new Finance Department position, and staff additions/changes that will be proposed in the 2018 budget. Councilmember Buckshnis offered to prepare a $75,000 decision package in the Council budget for the Edmonds Marsh Study by September 22. Action: Schedule on Consent 2. Contracting and Purchasing & Capital Asset Policy Updates Mr. Turley reviewed the Capital Asset Policy, advising he circulated the policy to all the directors and incorporated their comments. The policy is being updated in response to the audit. Mr. Turley reviewed the Contracting and Purchasing Policy. Committee members requested the policy include consideration of Minority or Woman Owned Business (MWBE) in procurement of products and bid solicitations. Discussion followed regarding the potential impact on other policies. Councilmember Teitzel offered to draft policy language and an agenda memo and staff will schedule the revision to the policy on the Parks, Planning & Public Works and Public Safety & Personnel Committees' agendas as well as forward it to directors for consideration of the ramifications. Action: 1. Schedule Capital Asset Policy on Consent Agenda 2. Amendment to Contracting and Purchasing Policy to be considered by PPP and PSP Committees as well as directors 3. Long -Range Financial Planning (LRFP) Committee Presentation of Revised Reserve Policy Councilmember Buckshnis said the process of revising the Reserve Policy should begin with the Council because having it done by the LRFP Committee did not respect the legislative authority of the Council. Councilmember Teitzel disagreed, advising the proposed policy was developed by staff and the LRFP 09/12/17 Finance Committee Minutes, Page 2 Committee as a working draft for review by the Finance Committee and ultimately the City Council. Mr. James pointed out many policies are developed at the staff level and presented to the Finance Committee for review and recommendation to Council. Mayor Earling formed the LRFP Committee to draft a long range financial plan for the City; a key component is the City's Reserve Policy. Discussion included the process for determining reserve amounts, establishing a timeline for developing policies, and the need for documentation to support the LRFP Committee's recommendations. Following a lengthy discussion, there remained a difference of opinion regarding the process for revising the City's Reserve Policy; Councilmember Teitzel supported the LRFP Committee making a recommendation for consideration by the Finance Committee; Councilmember Buckshnis wanted the determination of reserves to be a Council driven -process rather than the Council considering a policy drafted by the LRFP Committee. She was also concerned the public had not been involved in the process. Councilmember Teitzel asked to be included if Councilmember Buckshnis met with Mr. Taraday again regarding this issue. Action: Mr. James to provide the Finance Committee the background information that the LRFP Committee considered in drafting the Reserve Policy. The meeting was adjourned at 9:03 p.m.