FC010918Minutes
FINANCE COMMITTEE MEETING
January 9, 2018
_________________________________________________________________________________
Elected Officials Present Staff Present
Councilmember Dave Teitzel (Chair) Scott James, Finance Director
Councilmember Diane Buckshnis Dave Turley, Assistant Finance Director
Mayor Dave Earling Phil Williams, Public Works Director
The meeting was called to order at 7:10 p.m. in Council Chambers.
1. Authorize Mayor to increase the amount for Contract Change Order No. 2 for 76th
Ave/212th St Intersection Improvement Project
Mr. Williams described difficulties with the project due to utility conflicts. He reviewed:
• Construction Budget
Item Budget based on bid Current Budget
Construction Contract $4,435,239 $4,435,239
PUD Undergrounding $178,500 $206,855
Frontier Undergrounding $136,148 $170,185
Construction Mgmt $709,639 $709,639
Management Reserve $443,524
Sewer Change order $534,530
Remaining Mgmt Reserve $18,524
Add Mgmt Reserve $300,000
Revised total $5,903,050 $6,374,972
• Construction Funding
Funding Amount Based on Bid Available Amount
Federal Grant $2,676,185 $3,020,000
State TIB Grant $1,455,524 *$1,455,524
Street Fund (Impact fees) $39,685 $280,000
Water Fund $712,904 $776,475
Stormwater Fund $0 $450,528
Sewer Fund $345,002 $718,685
Comcast & Wave $125,215 $125,215
Verdant Grant $580,000 $580,000
Total $5,934,515 $7,406,427
*TIB Grant Award - $2,245,318
Mr. Williams highlighted increases in the PUD and Frontier Undergrounding, advising final costs have
not yet been determined; He also pointed out an increase in the sewer change order from $425,000 to
$534,530. Paving and striping will be done in the spring. He relayed staff’s recommendation:
1. Increase the amount of Contract Change Order No. 2 by $109,530 for the unforeseen sewer
main replacement work. This cost will be paid by sewer utility funds with contributions by the
Water Utility Fund and grant dollars.
2. Increase the management reserve by $171,922 to pay for the increase in Change Order No. 2
($109,530), PUD's extra cost ($28,355) and provide additional management reserve for
Frontier's budget ($34,037).
01/09/18 Finance Committee Minutes, Page 2
Discussion followed regarding unknown utility conflicts, additional cost that would have been incurred
to identify utility conflicts, and providing temporary power to Dairy Queen while unanticipated work
was done.
Action: Schedule 10-minute presentation for full Council
2. November 2017 Monthly Financial Report
Mr. Turley summarized most revenues and expenditures are on track at this point 92% of the way
through the year with the exception of large construction projects. Mr. Turley and Mr. James
responded to questions regarding fiber services revenue, Fund 112 salary and wages expenditures,
Water Fund repairs and maintenance expense, Edmonds rate of return compared to benchmark,
Fund 112 Combined Street Construction/Improvement fund balance, overnight loan to balance funds,
assistance provided by new accounting position, and information for staff to provide in quarterly report
presentation.
Action: Schedule on Consent Agenda
3. Establish New Funds for Edmonds Marsh, Homelessness and Opioid Response
Mr. James described his research to create these funds. He anticipated presenting draft policies to
the Finance Committee in February and adopting them via separate ordinances during the first
quarter. He responded to questions regarding use of the funds and establishing expenditure authority.
Action: Staff present policies to Finance Committee in February
4. Sno-Isle Library
Councilmember Teitzel explained Edmonds taxpayers are subsidizing the Sno-Isle Library; the City
Attorney’s office is researching options. Mr. James circulated a comparison of Sno-Isle’s financials
and library revenues collected from Edmonds taxpayers. Discussion followed regarding the condition
of the library building, other libraries in the Sno-Isle system, difference between revenue collected and
Sno-Isle’s expenditures for the Edmonds library, past opposition to the City annexing to Sno-Isle,
intent of library reserve, other cities’ contributions versus cost to operate their library, and the process
for negotiating with another governmental agency. Possible next steps include inviting Sno-Isle’s
Executive Director to a Finance Committee meeting to discuss how the subsidy can be used, staff
researching/confirming revenues and expenditures, and determining what services citizens want the
library to provide.
Action: For information only.
The meeting was adjourned at 8:10 p.m.