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FC031318FINANCE COMMITTEE MEETING March 13, 2018 Elected Officials Present Councilmember Dave Teitzel (Chair) Councilmember Diane Buckshnis Mayor Dave Earling Staff Present Dave Turley, Assistant Finance Director Jeff Taraday, City Attorney Jerrie Bevington, Recorder The meeting was called to order at 7:10 p.m. in the Jury Meeting Room. The following items were added to the agenda: Item 5: Ordinances regarding the Edmonds Marsh, the Homelessness Response Fund and the Opioid Response Fund Item 6: SERS Radio Replacement Funding Item 7: Capital Assets Policy Item 8: Work Plan for Policy Updates 1. Ordinance Amending PFD Contingent Loan Agreement (CLA) Amendment Councilmember Buckshnis recalled when the previous bonds were refinanced, only the terms of the bond repayment changed and the CLA remained the same. Then -Finance Director Hunstock also drafted a memo. Mr. Taraday advised the City's bond counsel had drafted this amendment. Mr. Turley explained the CLA needed to be updated due to the PFD's plans to refund their bonds and the existing CLA refers to the 2008 bonds. Discussion included why the City's bond counsel drafted the amended CLA instead of the PFD's bond counsel and savings to be realized via refinancing the bonds. Action: Schedule on Consent Agenda, add to agenda memo the amount the savings via refinancing 2. Edmonds Public Facilities Grant Anticipation Loan/Bridge Loan Mr. Taraday explained Finance Director Scott James requested he prepare an Interlocal Agreement between the PFD and the City to create a "bridge loan" whereby the City can provide interim funding to the PFD. The PFD was awarded three grants, two for replacement of the ECA roof and one for theater improvements. The grants are reimbursement grants; the PFD must expend the funds and submit invoices to the grant funding agency for the grant proceeds. The propose of the ILA is to provide very short-term loans while the PFD awaits the reimbursement. Mr. Taraday commented it is theoretically possible the cost of the project could exceed the grant amount. He included a contingency in the agreement to address that possibility; such a loan would be treated the same as the loan in the CLA. He distributed revised language that the City's bond council requested be included in the agreement. Committee members requested the following: • Add language to the agreement regarding the grant for theater improvements • Schedule Council approval after the PFD Board approves the agreement. Include in the Council packet the minutes of the PFD Board's approval of the agreement 03/13/18 Finance Committee Minutes, Page 2 Action: Schedule on Consent Agenda 3. Authorizing the Mayor to Execute Property Use Permit Addendum for 4th Avenue Parking Lot Mr. Turley relayed the City has leased parking in this lot since 1989 for free 3 -hour parking and several stalls are re-leased to residents for a fee. Bank of America recently acquired the property and wants to increase the monthly lease payment from $300/month to $416.67/month and execute a new agreement. Discussion followed regarding how the new lease amount was calculated, revenue the City receives from re-leasing the spaces, long-term plans for the property, and opportunity to increase the fee the City charges. Action: Schedule on Consent Agenda 4. January Monthly Financial Report Mr. Turley reviewed the report, highlighting: • Insurance is paid in January; Funds 111 and 422 are overbudget for this reason • Finance and Non -Departmental are over budget due to payment of the Eden support annual maintenance He responded to questions regarding progress on hiring the senior accountant, budget for the Building Maintenance Fund, Fire District 1 station billings, Drug Enforcement Fund, police overtime, sales tax revenue. Action: Schedule on Consent Agenda 5. Ordinances regarding Edmonds Marsh, the Homelessness Relief Fund and the Opioid Response Fund Edmonds Marsh Fund Mr. Turley advised the City does not have the capability of accepting online donations to the Edmonds Marsh Fund; donations could be accepted via a phone call to the City. Discussion followed regarding other City activities that accept online payments. Staff research making donations online; report to committee at next meeting. Homeless Relief Fund Councilmember Teitzel advised an RFP has been published for a consultant. Mr. Turley said if the fund has not been established by the time payments to the consultant need to be made, it could be paid from the General Fund and transferred once the fund is established. Councilmember Teitzel advised a draft ordinance has been prepared and is awaiting review by Council President Nelson. He will contact Council President Nelson and request it be available for the next Finance Committee meeting. Opioid Response Fund Councilmember Teitzel advised a draft ordinance has been prepared and is awaiting review by Council President Nelson. He will confer with Council President Nelson and request it be available for the next Finance Committee meeting. Action: See above 6. SERS Radio Replacement Funding 03/13/18 Finance Committee Minutes, Page 3 Councilmember Teitzel relayed the cost to replace SERS radios is approximately $75 million countywide. He recalled Mr. James was interested in an E-911 fee. A $0.70 E-911 fee currently exists that generates $7.1 million/year and the cap would need to be changed by the legislature to increase that fee. Those funds in Snohomish County are allocated to SNOCOM and SNOPAC. With regard to an increase in property tax to fund the replacement, recalled at a 21s' District townhall many people expressed concern with the amount of their property taxes. With regard to an increase in sales tax to fund the replacement, residents have some control over sales tax via their spending habits. The impact of a .01 sales tax increase on a $30,000 vehicle is $30. Discussion included requesting the legislature lift the cap on the E-911 fee. Action: Discussion only. 7. Capital Assets Policy Mr. Turley advised directors reviewed the draft policy and did not have any concerns. Action: Schedule on next Finance Committee agenda 8. Work Plan for Policy Updates Committee members reviewed a matrix of finance policies and identified policies that have been completed. It was agreed one policy would be scheduled on each Finance Committee meeting agenda with a goal of completing the policy updates by the end of the year. Policies were prioritized as follows, with staff determining the order policies are brought to the committee: Priority A Financial Reporting Policy Financial Policy Petty Cash Policy Capital Asset Policy Reserve Policy Priority B UB Penalty Adjustment Policy Leak Adjustment Policy Travel and Meal Expense Policy Recognition and Reimbursement Policy Employee Expenses, Volunteer Policy Committee members suggested staff provide a biannual report regarding the outcome of claims for damage that are submitted to WCIA. Discussion included a biannual budget. Action: Review one policy at each committee meeting; staff to determine the order policies are brought to committee The meeting was adjourned at 8:20 p.m.