04/08/2014 Finance CommitteeFINANCE COMMITTEE MEETING MINUTES
April 8, 2014
Councilmembers Present
Councilmember Lora Petso
Councilmember Kristiana Johnson
Public Present
Ron Wambolt
Roger Hertrich
Bruce Witenberg
Dave Arista
Pam Stiller
Brent Malgarin
Staff Present
Scott James, Finance Director
Stephen Clifton, Comm. Serv./Econ. Dev. Dir.
Sharon Cates, City Attorney's Office
Jeannie Dines, Recorder
Councilmember Petso called the meeting to order at 6:00 p.m. It was agreed to allow citizens to
comment during each item.
A. An Ordinance of the City of Edmonds, Washington, Amending Edmonds City Code
Cha ter 3.75 Relating to the Edmonds Downtown Business Improvement District
Adding Section 3.75.075 to Create an Exemption for New Businesses, Amending
Section 3.75.050 to Amend the Delinquent Payment Procedure and Fixing a Time When
the Same Shall Become Effective
Mr. Clifton explained the BID Board was approached by a BID member asking about an exemption
from the assessment for new businesses. The City Attorney determined it could not be retroactive for
businesses that have already paid as that would be a gift of public funds. The RCW allows an
exemption from the BID assessment for up to one year but a code amendment is required. The BID
Board discussed this at their March 27 meeting and supported an exemption for new business for up
to 1 year. If the Council approves the ordinance on April 15, it will be effective April 22.
Dave Arista relayed the exemption was unanimously approved by the BID board. The Board was
aware the exemption was allowed by RCW and had discussed it during the formation stage of the
BID. A brief discussion followed regarding the BID assessment rates for open door and by
appointment businesses and the process for instituting the exemption.
Mr. Clifton reported about 10% of businesses in the BID are delinquent, ranging from 1 quarter to 1
year. The code section states accounts are delinquent after 60 days but does not establish a timeline
for sending them to collections. The BID Board recommends establishing a 9 month (3 quarter)
timeframe before the Finance Director would send it to collections. Councilmember Petso
recommended the notice explain the 12% interest rate, collection fee, etc.
Mr. Clifton explained the City Attorney also suggested not renewing a business' license if their fees
are delinquent. The BID Board has not discussed that; it is on their April 10 meeting agenda. Ms.
Cates will determine whether a public hearing is required for this code amendment.
Brent Malgarin asked whether a business that had not paid its fees would qualify for the new business
exemption. Mr. Clifton relayed the City Attorney's analysis that the exemption would be from the
effective date of the ordinance. Pam Stiller advised the BID Board agreed it would not be retroactive.
Councilmember Petso suggested the City Attorney determine whether the exemption would apply to a
business whose fees were delinquent.
04-08-14 Finance Committee Minutes, Page 2
Action: Schedule the one year exemption for new businesses for full Council on April 15. Defer the
issues of sending a business with delinquent fees to collections and business license renewal to a
future agenda.
B. Discussion Regarding the Reporting/Disclosures of Lawsuits and Settlements
Councilmember Petso explained this is the result of citizen requests for more frequent updates and
more details. She suggested a quarterly or semi-annual report on a committee agenda and then on
the Consent Agenda. Bruce Witenberg relayed his suggestions, 1) recent settlements were
disseminated to the public via the press; it would be preferable and more transparent if the Council
provided that information following executive session, 2) announce the outcome or significant
developments in cases, 3) announce the litigation that is the topic of an executive session.
Councilmember Petso said City Attorney Taraday has agreed as a practice that a more detailed
announcement will be made when action is taken following an executive session. She relayed
another citizen's interest in prospective details such as upcoming trials.
Action: Ms. Cates will discuss with City Attorney Jeff Taraday.
C. Human Resources Department Reorganization
Mr. James explained the proposal is to update the salary ordinance to include a Human Resources
Reporting Director; there is no budget impact as Ms. Hite is already serving in that capacity. The
salary ordinance would also be updated to include Development Services Director, Human Resources
Part-time Assistant and PC Support Technician. Other changes the committee requested included,
revising the title of the agenda item to include Amending the Salary Schedule, include special duty
pay of 5% and revise the Senior Executive Council Assistant salary to reflect the increase the Council
approved for 2014.
Action: Schedule on Consent Agenda.
D. Acting Development Services Director Assignment
Mr. James explained this is a formality to recognize Rob Chave served as Acting Development
Services Director from January 1, 2014 - March 31, 2014, and received the corresponding out of class
pay. Mr. James will add a motion to the agenda memo.
Action: Schedule on Consent Aqenda.
E. 2414 February Budgetary Financial Resort
Mr. James reviewed the report, highlighting revenues and expenditures and noting sales tax is up
$100,000 over last year. He responded to committee members' questions regarding several items. It
was agreed Mr. James would add an asterisked description for items on which questions were raised.
The quarterly report will include a narrative.
Action: Schedule on Consent Agenda.
F. Continued Discussion Regarding Cost to Have the Minutes of the Public
Safe (Personnel and Paries Planning, and Public Works Taped and Transcribed
Committee members and staff discussed methods of recording meetings, past practice of staff
preparing committee meetings minutes, whether there is a demand for online committee meeting
recordings and the difficulty for staff to present and take minutes at committee meetings.
04-08-14 Finance Committee Minutes, Page 3
Action: Experiment next month recording a committee meeting with an iPad and research the cost of
digital recorders.
G. Application for a Concession Agreement between the City of Edmonds and_ Dean
Parmenter/Hot Dignity Don
Councilmember Petso relayed the code was amended in 2012 to require $5 million aggregate
insurance or as recommended by WCIA. Staff in the City Attorney's office consulted with WCIA in
February 2014 and they agreed a $2 million aggregate amount for this type of mobile vending unit
was appropriate. Discussion followed regarding the monthly fee, researching agreements and
charges for other food vendor carts/trucks in the City as well as fees other cities charge vendor
carts/trucks.
Ron Wambolt provided a brief history of the concession space on James Street and the fee charged
for this location.
Action: Schedule for Consent Agenda; if internal/external comparables indicate an increase in the fee
is appropriate, schedule for full Council.
H. Public Comments
Ron Wambolt, Edmonds, referred to the question he asked at the last meeting regarding salaries in
Administrative Service, pointing out YTD salaries are now 15%. Mr. James explained one of the
reasons for the increase was the IT Help Desk person was part-time in 2013 and was approved for
full-time in 2014. Mr. Wambolt recalled the monthly reports were initiated at his request when the
economy was poor. He suggested a narrative would reduce the number of questions.
Bruce Witenberg, Edmonds, did not support having a digital recording being the primary means of
communicating committee meetings. If recordings are placed on the website, he recommended
indexing the agenda items. He preferred a neutral person transcribe the minutes rather than staff or a
Councilmember.
Adjournment — The meeting adjourned at 7:50 p.m