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12/11/2012 Finance CommitteeFINANCE COMMITTEE MEETING MINUTES December 11, 2012 Councilmembers Present Staff Present Councilmember Buckshnis Shawn Hunstock, Finance Director Councilmember Yamamoto Stephen Clifton, Community Services /Economic Development Director Jeannie Dines, Recorder Councilmember Buckshnis called the meeting to order at 9:54 p.m. A. Draft Proposed Cable Franchise Agreement between the City of Edmonds, Washington and Comcast of Washington LLC and Comcast of California /Colorado/Washington 1, Inc. Mr. Clifton reported it has taken a couple years to negotiate this contract; it began with a consortium (10 cities and Snohomish County) that created template that each city tailored to meet their individual requirements. The City worked with Mike Bradley, a Lighthouse Group subcontractor, to finalize the agreement. Mr. Clifton highlighted the following sections: • Section 7.1, franchise fees, 5% will be collected on gross revenue • Section 11.7.1, Comcast will begin collecting an Education and Government (EG) fee of $0.35 from each subscriber. Those funds can only be used for capital purposes. Language was inserted to allow the City to reimburse funds expended prior to receiving the EG fee. • Section 15.4, $10,000 application fee, can be used for any purpose. Recommend using these funds for maintenance. Mr. Clifton reported the Franchise Agreement negotiated with Verizon (now Frontier) included language regarding competitive equity. Because Comcast agreed to collect a $0.35 EG fee, Frontier can be asked to do the same. He recommended the $3,000 remaining from the Verizon franchise fee be used to replace microphones on the Council dais. Action: Presentation to Council on December 18 with Committee recommendation for approval. B. 2012 Budget Amendment Mr. Hunstock highlighted several amendments. He reported an expenditure appropriation for the settlement the Council just approved will need to be added to the amendment. Action: Presentation to full Council on December 18. Mr. Hunstock explained the monthly report has been modified to add a dashboard. There has not been a great deal of change since the last report. As gas utility tax revenue has been under budget in 2012; the 2013 budget was decreased. REET revenue is 20% ahead of budget in 2012; therefore, the budget for 2013 was increased. Councilmember Yamamoto inquired about the use of the Cemetery Trust Fund. Mr. Hunstock responded the City Attorney was asked several weeks ago whether the principal in the Cemetery Trust Fund can be used for anything; he has not yet provided a response. 12 -11 -12 Finance Committee Minutes, Page 2 Mr. Hunstock highlighted the ending General Fund balance on October 31 of just under $3 million. Discussion followed regarding the potential to appropriate funds via a budget amendment in 2013 to complete the diverse fiber route. Action: Schedule on Consent Agenda D. Public Comments — None Adjournment — The meeting adjourned at 10:06 PM.