FC041018FINANCE COMMITTEE MEETING
April 10, 2018
Elected Officials Present
Councilmember Dave Teitzel (Chair)
Councilmember Diane Buckshnis
Mayor Dave Earling (portion of meeting)
Staff Present
Scott James, Finance Director
Dave Turley, Assistant Finance Director
Rob English, City Engineer
The meeting was called to order at 7:05 p.m. in the Jury Meeting Room. Next Steps regarding
Financial Policies, identifying the next policy to bring to the Finance Committee, was added as Item 6.
Report on Public Works Committee Agenda Items
Mr. English distributed a list of Public Works items reviewed by the Parks & Public Works Committee
in 2017. He explained the Parks & Public Works (PPW) Committee asked staff to evaluate the Public
Works items that were brought to the committee in 2017 and provide a recommendation for
streamlining the number of items the committee reviews by either not requiring Council approval or
skipping the committee and going straight to Consent. He referred to Exhibit A in the Council packet,
a spreadsheet of over 60 items brought to study session (prior to forming committees) or to the PPW
Committee. Based on this review, staff made the following recommendation to the PPW Committee:
• Grant Mayor Authorization:
1. Accept street dedications
2. Accept acquisition of right of way or easements that are less than $100,000 in value
3. Authorize the surplus of equipment
4. Authorize the purchase of vehicles or equipment that are programmed in the current year's
budget and are less than $400,000.
5. Final Acceptance of project. Staff will provide an annual report on accepted capital projects
6. Approve Professional Service Agreements that are anticipated and included in the current
year's budget, do not require a budget amendment, and are less than $400,000.
7. Approve Supplemental Agreements that are anticipated and included in the current year's
budget, do not require a budget amendment, and are less than $400,000. Examples:
a. Multi-year design or construction management services on annual capital
replacement/maintenance programs that are in the current year's budget.
b. Construction support services for the designer of record on projects that are in the
current year's budget.
c. Final design phase after preliminary design on projects that are in the current year's
budget
Consent Agenda Approval
1. Final Acceptance of Projects
Mr. English responded to question and discussion followed regarding the current threshold for
purchase of vehicles or equipment, how the $400,000 amount was determined, administrative
approval not requiring Council approval on Consent, requiring Council approval of an agreement or
vehicle/equipment purchase that were not included in the budget, increasing the threshold for Public
Works' agreements and purchases but not for other departments, Public Works' adherence with
04/10/18 Finance Committee Minutes, Page 2
bidding requirements, qualification based selection of consultants versus lowest bidder, revisions to
the purchasing policy and adoption of resolutions that will be required to institute the changes, and
Public Works projects that are Parks projects.
The committee directed that Public Works Professional Services and Supplemental Agreements
greater than $100,000 and less than $400,000 that are approved administratively be placed on
Consent.
Action: Present to full Council revisions to the purchasing policy and adoption of resolutions to
institute the changes
2. Capital Asset Policy and Resolution for Adoption
Mr. Turley advised the policy has been circulated twice to directors and managers for comments.
Discussion followed regarding the date for completing the capital asset inventory, date for reviewing
and reconciling the Construction in Progress schedule, process of hiring of a senior accountant,
transfer of assets between departments allowed by mutual agreement of departments, sidewalks as a
separate asset category, and computer equipment that contains sensitive information. The following
revisions were made:
• Change title of 2.0 to read: ORGANIZATIONS FUNDS AFFECTED
• Move Definitions to Section 4 and Capital Assets Policy to Section 5
• Remove "sidewalks" from the infrastructure definition
• Delete "if it contains sensitive information" from Section 5.5
Action: Schedule policy with requested changes and resolution on Consent Agenda
3. First Quarter 2018 Budget Amendment
Mr. James reviewed:
• Revenues increased by approximately $1.5 million
• Expenses increased by approximately $1.4 million
• Change in ending fund balance increased by $144,000
• Budget amendments
1. Addition of permit coordinator due to building permit activity that outpaces budgeted
projections — self funded
2. Provide ORCA pass to all employees in support of the Commute Trip Reduction program
3. Funding to close out the 228th Street Corridor Improvement project
4. Transfer REET funds originally allocated to 238th Street Walkway to Dayton Street project
5. Professional Services Agreement to manage Waterfront Redevelopment and Civic Field
6. Replace benches at Brackett's Landing North, repair and maintenance previously
approved not possible — funded via Bench Donation Fund
7. On-call professional services to support Engineering Division due to difficulty filling and
Engineering Tech II or III position
8. Replacement of waterline adjacent to Swedish Hospital campus
9. Water utility funds for the design to replace watermain at Maplewood site
10. Storm utility funds to replace storm pipe at PRV 13 site
11. Hire an additional WWTP operator to ensure adequate training before existing staff retire
12. Bridge loan to Edmonds Center for the Arts
13. Transfer funds allocated in the budget to the Marsh Fund, Homelessness Response Fund
and Opioid Response Fund
14. Program TIB grant received in 2017 to the 238th Street Walkway instead of Dayton Street
project due to deadline
04/10/18 Finance Committee Minutes, Page 3
Mr. James responded to committee questions regarding the proposed amendments.
Action: Full Council presentation
4. Ordinance to Repeal CC Chapter 3.04 to be Replaced Later with Resolution
Mr. Turley explained City Code Chapter 3.04 was adopted by ordinance to establish guidance for
financial reporting. Best practice is to adopt financial reporting guidelines by resolution rather than by
ordinance. A resolution to establish financial reporting guidelines will be proposed once this ordinance
has been repealed. Staff will update Resolution 1226 regarding adoption of financial policies.
Discussion followed regarding a potential delay between repealing the ordinance and adopting a
resolution.
Action: Schedule for full Council, include ordinance to be rescinded and minutes in the packet
5. February 2018 Monthly Financial Report
Mr. Turley highlighted the following:
• February is 16% through the year
Differences in Combined Street Construction/Improvement fund due to grant billings
Need to fill police officer positions to avoid overtime
Discussion included adjustments for CAFR purposes,
2017, local retail sales/uses tax revenues trending
renovation, parking infraction penalties that exceed
enforcement has increased parking turnover and w
parking infraction penalties will not continue to tr
commendation on investment revenues.
Action: Schedule on Consent Agenda
6. Next Steps regarding Financial Policies
Staff present at next Finance Committee meeting:
• Revised Contracting and Purchasing Policy
Revised Resolution 1226
Action: See above
The meeting was adjourned at 8:15 p.m.
record local retail sales/uses tax revenues in
downward due to Toyota dealership under
budget, comments from a retailer that traffic
a result increased his revenues, possibility
and upward due to learned behavior, and