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.