FC100918FINANCE COMMITTEE MEETING
October 9, 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
Jeff Taraday, City Attorney
Shane Hope, Development Services Director
Jerrie Bevington, Recorder
The meeting was called to order at 7:20 p.m. in the Jury Meeting Room. Renewal of the City Attorney
Contract was added to the agenda.
3. Renewal of the City Attorney Contract
Councilmember Teitzel referred to the existing Agreement for Legal Services which expires in
December 31, 2018 and includes a flat fee of $41,000/month which under the terms of the contract
increased by 4% each year. He reviewed preliminary data points with regard to the contract renewal
including the base fee for Lighthouse 2015-2022, annual increases in contracted City Attorney rates in
Lynnwood and Issaquah, increase in City employee salaries/benefits 2016-2018, CPI-U for
Seattle/Tacoma/Bremerton 2016-2018, and Edmonds union contract rate increases 2017-2020.
Mr. Taraday explained Lighthouse's flat per month fee for legal services with Edmonds is unique;
other cities pay a retainer and hourly attorney fees. The flat fee is similar to an in-house legal
department in that the City does not take on the risk of litigation costs. The flat fee also aligns the
interests of the law firm with the City; Lighthouse has an incentive to keep the City out of trouble and
litigate efficiently. He concluded the flat per month fee has worked well for both parties.
Discussion followed regarding whether the data points were relevant, difficulty comparing professional
services and staff salaries, determining the total that other cities pay for contract attorney services, the
City's legal expenditures prior to contracting with Lighthouse, how the existing Lighthouse base rate
was determined, predictability of the flat fee rate, information provided in the City Attorney's annual
report, CPI-U forecast, and minimal changes to the contract. Committee members were supportive of
renewing the City Attorney contract and the 4% annual increase.
Action: Schedule on Consent Agenda
2. Third Quarter 2018 Budget Amendment
Mr. James reviewed:
• $117,612 in revenue
• $875,871 in new expenses
• Third quarter budget amendments:
1. Funding from First Responder Flex Fund Project for social worker to assist
individuals/households identified as high risk for chemical dependency or mental health
issues or to abate an emergency situation
2. Reimbursable Police Department overtime — special events
3. Reimbursable Police Department overtime — DNDO Drill
4. Reimbursable Police Department overtime — pedestrian safety activities
10/09/18 Finance Committee Minutes, Page 2
5. Holiday Market revenue and expenditures
6. Diversity Film Series
7. Custodial staffing, temporary/seasonal labor due to long term medical leaves of absence
8. Custodial staff overtime related to above
9. Complete the Facility Condition Assessment in 2018
10. Fire panels in multiple locations
11. Security measures — cameras, panic buttons, security panels, lock down rooms
12. Engineering staff overtime
13. Transfer traffic impact fees to fund pre -design study for 76' Ave/220th St intersection
improvements
14. Adjustment for final closeout cost on the 228th St Corridor Improvement Project
15. Study to review current Utility and General Facilities Charge Rates
16. Stormwater commercial
17. 1 % for the Arts transfer for new sewer pipe and appurtenances constructed as part of the
2018 Sanitary Sewer Replacement Project
18. Additional work done on Edmonds Street as part of the 2018 Sanitary Sewer Replacement
19. Participate in MyBuildingPermit portal
Mr. James responded to Council questions regarding the amendments. Ms. Hope provided details
regarding the MyBuilding Permit system and savings it will provide.
Action: Schedule for full Council
The meeting was recessed at 8:04 p.m. and reconvened at 8:10 p.m.
1. August 2018 Monthly Financial Report
Committee members and staff discussed leading economic indicators such as softening of the
housing market and car sales, and the decrease in building permits and whether these were
predictors of a downturn.
Mr. Turley and Mr. James highlighted:
• Sales tax and property tax revenues are ahead of last year
o Sales tax forecast: $8.1 million in 2018, not expected to continue at that rate in 2019
• Expenditures lower than revenues but higher compared to last year
• Building structure permits are down
• Fund 012 made interfund loans to Fund 104 (drug enforcement) and to Fund 112 due to
grants not yet received
Staff responded to questions regarding LEOFF Medical Insurance Reserve expenditures, establishing
a minimum and maximum on long term care expenditures, having an actuarial study conducted on
LEOFF members, decrease in building permits, Lynnwood Mazda (in Edmonds) adding Hyundai, non -
traffic infraction penalty revenue, source of First Responder grant, advertising expenditures,
expenditures from the Park Construction Fund, and developing a policy for budgeting for capital
projects. Committee requested City Attorney expenditures for Lighthouse and the prosecutor be
reported separately.
Action: Schedule on Consent Agenda
The meeting was adjourned at 8:34 p.m.