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2011.08.09 CC Committee Meetings Agenda Packet                 AGENDA EDMONDS CITY COUNCIL Council Chambers, Public Safety Complex 250 5th Avenue North, Edmonds ________________________________________________ AUGUST 9, 2011 6:00 p.m. City Council Committee Meetings The City Council Committee meetings are work sessions for the City Council and staff only. The meetings are open to the public but are not public hearings. The Committees will meet in separate meeting rooms as indicated below.                 1.Community/Development Services Committee Meeting Room:  Council Chambers   A. (5 Minutes)Report on final construction costs for West Dayton Emergency Storm Repair Project and acceptance of project.   B. (5 Minutes)Report on Small Works Roster Solicitation for the Dayton St. CIPP Storm Pipe Rehabilitation Project and award contract to Michels Corporation in the amount of $64,020.00.   C. (5 Minutes)Ordinance Amending the Edmonds City Code, Adding 4-Hour Parking Limitations to Brackett’s Landing North Parking Lot.   D. (5 Minutes)Authorization for Mayor to sign Interlocal Agreement with Community Transit for Commute Trip Reduction 2011-2015.   E. (5 Minutes)Authorization for Mayor to sign Interlocal Agreement with the City of Lynnwood to install waterline as part of Lynnwood's 76th Ave W Sewer Improvement Project.   F. (20 Minutes) Potential amendments to downtown BD zones. (PLEASE NOTE: this item contains all of the material from the July 26th public hearing; the material is repeated here for reference. The "recommendation" below is specifically geared for the Committee discussion, however.)   G. (10 Minutes)Public Comments (3-minute limit per person)   2.Finance Committee Meeting Room:  Jury Meeting Room   A. (10 Minutes)Quarterly report regarding fiber optic opportunities.   Packet Page 1 of 202 B. (5 Minutes)Park Trust Fund Ordinance amending City Code 3.16.020.   C. (15 Minutes)Old Milltown Courtyard budget review, project timing.   D. (5 Minutes)Review of minor chages by SNOCOM legal to the "Interlocal Agreement for SNOCOM Internet Access" that was approved for Mayor's signature on 11-16-2010    E. (10 Minutes)Update on financial policies and reporting - Finance Reserve Policy Examples   F. (10 Minutes)Public Comments (3-minute limit per person)   3.Public Safety Committee Meeting Room:  Police Training Room   A. (10 Minutes)ILA with Okanogan County for Jail Services   Packet Page 2 of 202 AM-4125   Item #: 1. A. City Council Committee Meetings Date: 08/09/2011 Time:5 Minutes   Submitted For:Pam Lemcke Submitted By:Megan Cruz Department:Engineering Committee:Community/Development Services Type:Action Information Subject Title Report on final construction costs for West Dayton Emergency Storm Repair Project and acceptance of project. Recommendation from Mayor and Staff Forward item to the consent agenda for approval at the August 15, 2011 Council meeting. Previous Council Action On March 15, 2011, the Council authorized approval of a resolution authorizing the Mayor and staff to dispense with competitive bidding requirements to allow for an emergency repair on the stormwater pipe in Dayton Street. Narrative The City became aware of a sink hole in Dayton Street between the BNSF railroad tracks and Admiral Way on February 25, 2011. Upon excavation and dewatering, the City found a hole in the existing 24-inch diameter stormwater pipe that resulted in the undermining of soil beneath Dayton Street. The City determined that a permanent repair was needed as soon as possible since the pipeline had to continue to convey stormwater runoff to Puget Sound.  The construction work was completed by Interwest Construction Inc. and inspected by City Staff.   A summary of the construction costs are listed below.  At the request of the City, the initial contract of $67,500 with Interwest Construction was increased by $945 so the contractor could provide a performance and payment bond for the duration of the project.  The project costs were paid by the 412-200 Stormwater Utility Fund.       CONSTRUCTION COSTS Contractor – Interwest Construction Inc.$68,445 Testing – HWA Geosciences $1,087 Staff Time $6,326 TOTAL $75,858 Form Review Inbox Reviewed By Date Engineering Robert English 08/03/2011 04:04 PM Public Works Linda Hynd 08/05/2011 12:30 PM Finance Jim Tarte 08/05/2011 12:31 PM City Clerk Linda Hynd 08/05/2011 12:33 PM Mayor Linda Hynd 08/05/2011 02:25 PM Final Approval Linda Hynd 08/05/2011 02:27 PM Form Started By: Megan Cruz Started On: 08/03/2011 01:34 PM Final Approval Date: 08/05/2011  Packet Page 3 of 202 AM-4123   Item #: 1. B. City Council Committee Meetings Date: 08/09/2011 Time:5 Minutes   Submitted For:Mike De Lilla Submitted By:Megan Cruz Department:Engineering Committee:Community/Development Services Type:Action Information Subject Title Report on Small Works Roster Solicitation for the Dayton St. CIPP Storm Pipe Rehabilitation Project and award contract to Michels Corporation in the amount of $64,020.00. Recommendation from Mayor and Staff Forward the item to the consent agenda for approval at the August 15, 2011 Council meeting. Previous Council Action None. Narrative In February 2011, the City became aware of a sinkhole in Dayton Street between the BNSF railroad tracks and Admiral Way.  As part of the investigation to determine why the sinkhole formed, the City completed a video inspection of the stormwater pipe from the east side of the railroad tracks west to where the sinkhole was found.  The video inspection showed that approximately 280 feet of 24-inch diameter stormwater pipe was in poor condition.   A hole in the pipe was also found at the sinkhole location in Dayton Street.   An emergency repair contract was executed in March of this year to fix the sinkhole and replace 65 feet of pipe between two existing manholes.  The remaining 215 feet of pipe was not included in the emergency repair since it was determined that a cured in place pipe (CIPP) would be the best approach to repair the remaining section of pipeline.  The CIPP method also provides the benefit of repairing the pipe section beneath the existing BNSF railroad tracks without disrupting track operations.   The Engineer’s estimate for this work was under $80,000. On June 21, 2011, per the City of Edmonds Purchasing Policy, the Municipal Research and Service Center (MRSC) roster was used to solicit bids from all qualified firms, with bids due on July 1, 2011. On July 1, 2011, the City received one quotation for the Dayton St. CIPP Storm Pipe Rehabilitation project in the amount of $146,155. Upon reviewing the bid, the project was repackaged so that it would be brought under budget. On July 13, 2011, per the City of Edmonds Purchasing Policy, the Municipal Research and Service Center (MRSC) roster was again used to solicit bids from all qualified firms, with bids due on July 26, 2011. On July 26, 2011, the City received one quotation for the Dayton St. CIPP Storm Pipe Rehabilitation Project. The bid was $64,020.00. The bid tabulation summary is attached as Exhibit 1. Michels Corporation submitted the low responsive bid in the amount of $64,020.00. The engineer’s estimate was $60,732.00. Staff completed a review of the low bidder’s record and references and found them to be acceptable. Fiscal Impact This project will be funded by the 412-200 Stormwater Utility fund. Attachments Exhibit 1-Bid Tab Form Review Inbox Reviewed By Date Engineering Robert English 08/04/2011 10:05 AM Public Works Linda Hynd 08/05/2011 12:30 PM Packet Page 4 of 202 Public Works Linda Hynd 08/05/2011 12:30 PM City Clerk Linda Hynd 08/05/2011 12:31 PM Mayor Linda Hynd 08/05/2011 02:25 PM Final Approval Linda Hynd 08/05/2011 02:27 PM Form Started By: Megan Cruz Started On: 08/03/2011 08:21 AM Final Approval Date: 08/05/2011  Packet Page 5 of 202 It e m Q t y U n i t De s c r i p t i o n Un i t P r i c e T o t a l P r i c e U n i t P r i c e T o t a l P r i c e 1 1 L S M o b i l i z a t i o n / D e m o b 9, 6 4 0 . 0 0 $ 9, 6 4 0 . 0 0 $ 16 , 4 0 0 . 0 0 $ 16,400.00 $ 2 1 L S T r a f f i c C o n t r o l 2, 4 1 0 . 0 0 $ 2, 4 1 0 . 0 0 $ 3, 0 8 0 . 0 0 $ 3,080.00 $ 3 1 L S T E S C 48 2 . 0 0 $ 48 2 . 0 0 $ 65 0 . 0 0 $ 650.00 $ 4 2 1 5 L F 2 4 " S D R e h a b u s i n g C I P P L i n i n g 18 0 . 0 0 $ 38 , 7 0 0 . 0 0 $ 18 5 . 0 0 $ 39,775.00 $ 5 1 L S S t o r m w a t e r B y p a s s & P u m p i n g 7, 0 0 0 . 0 0 $ 7, 0 0 0 . 0 0 $ 1, 6 1 5 . 0 0 $ 1,615.00 $ 6 1 L S A s - B u i l t s 50 0 . 0 0 $ 50 0 . 0 0 $ 50 0 . 0 0 $ 500.00 $ 7 1 L S M i n o r C h a n g e s / F o r c e A c c o u n t 2, 0 0 0 . 0 0 $ 2, 0 0 0 . 0 0 $ 2, 0 0 0 . 0 0 $ 2,000.00 $ Su b t o t a l 60 , 7 3 2 . 0 0 $ Su b t o t a l 6 4 , 0 2 0 . 0 0 $ 9. 5 % T a x N/ A 9. 5 % T a x N / A TO T A L 60 , 7 3 2 . 0 0 $ 64,020.00 $ Mi c h e l s C o r p o r a t i o n En g i n e e r ' s E s t i m a t e Da y t o n S t r e e t S t o r m P i p e C I P P R e h a b i l i t a t i o n E1 F I / c 3 5 1 Pa c k e t Pa g e 6 of 20 2 AM-4121   Item #: 1. C. City Council Committee Meetings Date: 08/09/2011 Time:5 Minutes   Submitted For:Bertrand Hauss Submitted By:Megan Cruz Department:Engineering Committee:Community/Development Services Type:Action Information Subject Title Ordinance Amending the Edmonds City Code, Adding 4-Hour Parking Limitations to Brackett’s Landing North Parking Lot. Recommendation from Mayor and Staff Forward the item to the consent agenda for approval at the August 15, 2011 Council Meeting. Previous Council Action None. Narrative The Downtown Parking Committee composed of City Council, the Police Department, the Engineering Division and Edmonds Citizens reviews requests and makes recommendations on parking changes. At the July 2011 meeting, the Police Department addressed parking issues at the Brackett’s Landing north parking lot. Visitors are parking at this location for extended periods of time beyond the posted 4 hour limitation. However, this parking limitation is not enforceable because it is not identified in Section 8.64.065 of the Edmonds City Code (ECC). The proposed ordinance would change this section of the ECC to correct the problem. The ordinance has been reviewed and approved by the City attorney’s office.  The Downtown Parking Committee recommends the following ECC revision (underlined in the table below):  8.64.065 Schedule VI-A – Parking time limited for certain periods of time on certain streets. In accordance with ECC 8.48.155 and when signs are erected giving notice thereof, no person shall stop, stand or park a vehicle for a period of time longer than the number of hours set forth below, or between the hours set forth below:    Name of Street or Road Hours – Stopped, Standing or Parking Prohibited 7. Bracket’s Landing parking lot Four hours maximum at any one time Attachments Attachment 1-Ordinance Form Review Inbox Reviewed By Date Engineering Robert English 08/04/2011 10:27 AM Public Works Linda Hynd 08/05/2011 12:30 PM City Clerk Linda Hynd 08/05/2011 12:31 PM Mayor Linda Hynd 08/05/2011 02:25 PM Final Approval Linda Hynd 08/05/2011 02:27 PM Form Started By: Megan Cruz Started On: 08/01/2011 02:22 PM Final Approval Date: 08/05/2011  Packet Page 7 of 202 {BFP708555.DOC;1/00006.900000/} - 1 - ORDINANCE NO. _______ AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING THE PROVISIONS OF ECC 8.64.065 BY ADDING 4-HOUR PARKING LIMITATIONS TO BRACKETT’S LANDING NORTH PARKING LOT; PROVIDING FOR SEVERABILITY; AND SETTING AN EFFECTIVE DATE. WHEREAS, many beach-goers are parking for long periods of time in the Brackett’s Landing North parking lot (North of Ferry Terminal); WHEREAS, signs are in-place at that location, limiting to 4-hour parking at any one time; WHEREAS, the Edmonds City Code doesn’t include any section regarding 4-hour parking limitations in this area; WHEREAS, the Police Department can’t enforce this parking restriction; WHEREAS, upon the recommendation of the Downtown Parking Committee, the City Council finds that the 4-hour parking restriction should be added to the Edmonds City Code, in order to make this enforceable; and THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN AS FOLLOW Section 1. Section 8.64.065 of the ECC Schedule VI-A - Parking time limited for certain periods of time on certain streets is hereby amended to read as follows (new language is underlined): Packet Page 8 of 202 {BFP708555.DOC;1/00006.900000/} - 2 - 8.64.065 Schedule VI-A – Parking time limited for certain periods of time on certain streets. In accordance with ECC 8.48.155 and when signs are erected giving notice thereof, no person shall stop, stand or park a vehicle for a period of time longer than the number of hours set forth below, or between the hours set forth below: Name of Street or Road Hours – Stopped, Standing or Parking Prohibited 1. Sunset Beach access way and Sunset Beach Park Four hours maximum at any one time. 2. West side of Sunset Avenue from Edmonds Street to Caspers Street. Four-hour parking 8:00 a.m. to 10:00 p.m. No parking from 10:00 p.m. to 8:00 a.m.; provided, however, the City Council may adjust the four-hour parking time and the no parking time set forth in this subsection by appropriate motion and upon erection of appropriate signs. 3. West side of Admiral Way from Dayton Street to a point 260 feet southerly. Two-hour parking from 6:00 p.m. on Friday to midnight on Sunday, and from 6:00 p.m. on those days immediately preceding public holidays to midnight on said public holidays. 4. Both sides of the portion of 75th Place west, north of North Meadowdale Road. Four-hour parking, 8:00 a.m. to 10:00 p.m. No parking from 10:00 p.m. to 8:00 a.m. 5. Five parking spaces designated by city engineer and located at the terminus and Two hours maximum between the hours of 8:00 a.m. and dusk.* No parking between dusk and 8:00 Packet Page 9 of 202 {BFP708555.DOC;1/00006.900000/} - 3 - southerly end of Ocean Avenue. a.m. 6. Both sides of Admiral Way from its intersection with Dayton Street and south thereof to the end of the public right- of-way (approximately 2,300 feet). Three hours maximum at any one time. 7. Bracket’s Landing parking lot Four hours maximum at any one time Section 2. Severability. If any section, sentence, clause or phrase of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. Section 3. Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum, and shall take effect five (5) days after passage and publication of an approved summary thereof consisting of the title. APPROVED: MAYOR MIKE COOPER ATTEST/AUTHENTICATED: Packet Page 10 of 202 {BFP708555.DOC;1/00006.900000/} - 4 - CITY CLERK, SANDRA S. CHASE APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: BY JEFFREY B. TARADAY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. Packet Page 11 of 202 {BFP708555.DOC;1/00006.900000/}- 5 - SUMMARY OF ORDINANCE NO. __________ of the City of Edmonds, Washington On the ____ day of ___________, 2011, the City Council of the City of Edmonds, passed Ordinance No. _____________. A summary of the content of said ordinance, consisting of the title, provides as follows: ORDINANCE NO. _______ AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING THE PROVISIONS OF ECC 8.64.065 BY ADDING 4-HOUR PARKING LIMITATIONS TO BRACKETT’S LANDING NORTH PARKING LOT; PROVIDING FOR SEVERABILITY; AND SETTING AN EFFECTIVE DATE. The full text of this Ordinance will be mailed upon request. DATED this _____ day of ________________, 2011. CITY CLERK, SANDRA S. CHASE Packet Page 12 of 202 AM-4120   Item #: 1. D. City Council Committee Meetings Date: 08/09/2011 Time:5 Minutes   Submitted For:Bertrand Hauss Submitted By:Megan Cruz Department:Engineering Committee:Community/Development Services Type:Action Information Subject Title Authorization for Mayor to sign Interlocal Agreement with Community Transit for Commute Trip Reduction 2011-2015. Recommendation from Mayor and Staff Forward the item to the consent agenda for approval at the August 15, 2011, Council meeting. Previous Council Action On October 27, 2007, City Council approved an Interlocal Agreement with Community Transit for Commute Trip Reduction 2007-2011. Narrative The CTR Interlocal Agreements are the mechanism through which State money flows to local jurisdictions to cover the expenses of administering CTR programs. In Snohomish County, the jurisdictions have historically agreed to take half of that money and give it to Community Transit (CT) to provide the employer outreach and CTR marketing for all worksites (defined as employers with 100 or more employees) in Snohomish County. The other half was allocated to the jurisdictions proportionally based on the number of worksites. The main tasks associated with administering CTR programs are writing and amending ordinances, reviewing employer annual reports and program descriptions, and coordinating with other jurisdictions. This year Edmonds, along with seven other cities and Snohomish County, has opted to again have CT as the lead agency responsible for implementing and administering the County’s and Cities’ CTR plans and programs. The funds received from the Washington State Department of Transportation to support the CTR base plans and programs for all participating jurisdictions will be provided to and managed by CT. The County and cities will assist CT through the enforcement of their respective CTR ordinances. The proposed Interlocal Agreement, Exhibit 1, is a four-year agreement for the period September 1, 2011 to June 30, 2015. The agreement is the same as the one previously approved by Council for 2007-2011. This proposed agreement has been reviewed by the City Attorney’s office. Attachments Exhibit 1 - Proposed Interlocal Agreement Form Review Inbox Reviewed By Date Engineering Robert English 08/04/2011 10:44 AM Public Works Linda Hynd 08/05/2011 12:29 PM City Clerk Linda Hynd 08/05/2011 12:31 PM Mayor Linda Hynd 08/05/2011 02:25 PM Final Approval Linda Hynd 08/05/2011 02:27 PM Form Started By: Megan Cruz Started On: 08/01/2011 11:32 AM Final Approval Date: 08/05/2011  Packet Page 13 of 202 Interlocal Agreement for Administering CTR Plans and Programs (2011-2015) Page 1 of 10 INTERLOCAL AGREEMENT FOR ADMINISTERING COMMUTE TRIP REDUCTION (CTR) PLANS AND PROGRAMS This AGREEMENT, entered into by and between Snohomish County Public Transit Benefit Area (hereinafter referred to as COMMUNITY TRANSIT), and City of Arlington, City of Bothell, City of Edmonds, City of Lynnwood, City of Marysville, City of Mukilteo, City of Monroe, City of Mountlake Terrace, (hereinafter referred to as the CITIES), and Snohomish County (hereinafter referred to as COUNTY), hereinafter collectively referred to as the PARTIES, WITNESS THAT: WHEREAS, RCW 70.94.527 requires counties containing urban growth areas and cities and towns with “major employers,” that are located within urban growth areas with a state highway segment exceeding the threshold of one hundred person hours of delay to develop ordinances, plans and programs to reduce Vehicle Miles Traveled (VMT) and Single Occupant Vehicle (SOV) commute trips, and thereby reduce vehicle-related air pollution, traffic congestion and energy use, and WHEREAS, COMMUNITY TRANSIT worked in partnership with the COUNTY and the CITIES to develop a common CTR plan and ordinance that has been adopted into law by the COUNTY and CITIES; and WHEREAS, the PARTIES believe that it is more efficient and effective to implement the plans and programs in a common manner and to designate COMMUNITY TRANSIT as the lead agency responsible for coordinating the development and implementation of the CTR plans and programs for the COUNTY and CITIES; and WHEREAS, the PARTIES agree that the COUNTY and CITIES will assist COMMUNITY TRANSIT through the enforcement of their respective CTR ordinances; and WHEREAS, the COUNTY and CITIES have determined that the funds to support the CTR base plans and programs for the COUNTY and CITIES from the Washington State Department of Transportation (hereinafter referred to as WSDOT) will be provided to and managed by COMMUNITY TRANSIT to support the implementation and administration of the CTR plans and programs within the COUNTY and CITIES; and WHEREAS, the COUNTY and CITIES determine that it is within the best interest of the public to enter into an interlocal agreement with COMMUNITY TRANSIT, whereby COMMUNITY TRANSIT will be the lead agency responsible for implementing and administering the COUNTY'S and CITIES' CTR plans and programs; and Packet Page 14 of 202 Interlocal Agreement for Administering CTR Plans and Programs (2011-2015) Page 2 of 10 NOW, THEREFORE, in consideration of covenants, conditions, performances and promises hereinafter contained, the PARTIES hereto agree as follows: 1. RECITALS: The recitals set forth above, constituting a basis of the agreement of the PARTIES, are incorporated herein by references as if fully set forth. 2. SERVICE PROVISIONS: THE PARTIES shall perform the services specified in the "STATEMENT of WORK" attached as Exhibit A, which is made a part of this AGREEMENT by this reference. 3. FUNDING: COMMUNITY TRANSIT shall receive all funds provided by the Washington State Department of Transportation (WSDOT) allocated for the COUNTY and CITIES to support the administration of the CTR base plans and programs. 4. CHANGE IN FUNDING: This AGREEMENT is contingent upon COMMUNITY TRANSIT's receipt of funds from the WSDOT. If the WSDOT funds for CTR are reduced or eliminated, the PARTIES shall review this AGREEMENT to determine the course of future CTR activities in Snohomish County and any amendments to this AGREEMENT that may be required. 5. AGREEMENT PERIOD: This AGREEMENT is effective for COMMUNITY TRANSIT and each individual PARTY as of the date signed by COMMUNITY TRANSIT and each individual PARTY irregardless of the signatures of the other parties to the agreement. The term of this AGREEMENT shall be from the effective date until June 30, 2015. 6. TERMINATION: The COUNTY, CITIES and/or COMMUNITY TRANSIT may terminate this AGREEMENT by providing written notice of such termination, specifying the effective date thereof, at least thirty (30) days prior to such date. Reimbursement for services performed by COMMUNITY TRANSIT, and not otherwise paid for by WSDOT prior to the effective date of such termination shall be paid as a pro rate portion of the applicable WSDOT allocation amount by WSDOT. 7. SEVERABILITY: The COUNTY or one or more CITIES may withdraw from this AGREEMENT by providing written notice of such intent, specifying the effective date thereof, at least thirty (30) days prior to such date. Such a withdrawal shall not affect other terms or conditions of this AGREEMENT between the remaining PARTIES. To this end, a withdrawal by a City from this AGREEMENT is declared severable. 8. AGREEMENT MODIFICATIONS: Any party may request changes to this AGREEMENT. Any such changes that are mutually agreed upon shall be incorporated herein by written amendment of this AGREEMENT. No variation Packet Page 15 of 202 Interlocal Agreement for Administering CTR Plans and Programs (2011-2015) Page 3 of 10 or alteration of the terms of this AGREEMENT shall be valid unless made in writing and signed by the PARTIES hereto. 9. NONDISCRIMINATION: The PARTIES, in performance of this AGREEMENT, shall comply with all applicable local, state, and/or federal laws and ordinances, and agree that they shall not discriminate against any person who is paid, for work completed, by funds indicated in this AGREEMENT or against any applicant for such employment on the grounds of race, color, religion, national origin, age, veteran status, or the presence of any sensory, mental, or physical disability. The PARTIES shall make reasonable accommodations to the sensory, mental, or physical disabilities of applicants and employees throughout the personnel process. In determining the extent of reasonable accommodation, the following factors will be considered: the safe and efficient operation of the organization; feasible financial costs and expenses; and the overall type and size of the organization's operation. 10. INDEMNIFICATION: A. COMMUNITY TRANSIT shall protect, hold harmless, indemnify, and defend, at its own expense, the COUNTY and CITIES and their elected and appointed officials, officers, employees and agents, from any loss or claim for damages of any nature whatsoever, arising out of the performance of Community Transit of this Agreement, including claims by the state, COMMUNITY TRANSIT's employees or third parties, except for those damages solely caused by the negligence or willful misconduct of the COUNTY or CITIES or their elected and appointed officials, officers, employees or agents. The COUNTY and CITIES shall protect, hold harmless, indemnify, and defend, at their own expense, COMMUNITY TRANSIT, its elected and appointed officials, officers, employees and agents, from any loss or claim for damages of any nature whatsoever, arising out of the performance of the indemnifying party, City and/or County of this Agreement, including claims by the state, the COUNTY's or CITIES’ employees or third parties, except for those damages solely caused by the negligence or willful misconduct of COMMUNITY TRANSIT, its elected and appointed officials, officers, employees or agents. B. It is understood and agreed that this AGREEMENT is solely for the benefit of the PARTIES hereto and gives no right to any other party. No joint venture or partnership is formed as a result of this AGREEMENT. C. This indemnification clause shall also apply to any and all causes of action arising out of performance of work activities under this AGREEMENT. Each contract for services or activities utilizing funds provided in whole or in part by this AGREEMENT shall include a provision that the PARTIES are not liable for damages or claims for damages arising from any subcontractor's performance or activities under the terms of the contracts. Packet Page 16 of 202 Interlocal Agreement for Administering CTR Plans and Programs (2011-2015) Page 4 of 10 IN WITNESS WHEREOF, Snohomish County, City of Arlington, City of Bothell, City of Edmonds, City of Lynnwood, City of Marysville, City of Mukilteo, City of Monroe, City of Mountlake Terrace and Community Transit have executed this AGREEMENT as of the date and year written below. SNOHOMISH COUNTY COMMUNITY TRANSIT __________________________ ________________________ Authorized Signature Authorized Signature Name Joyce Olson Eleanor Title Chief Executive Officer __________________________ __________________________ Date Date CITY OF ARLINGTON CITY OF EDMONDS __________________________ ________________________ Authorized Signature Authorized Signature Name Name Title Title __________________________ __________________________ Date Date CITY OF LYNNWOOD CITY OF MARYSVILLE __________________________ ________________________ Authorized Signature Authorized Signature Name Name Title Title __________________________ __________________________ Date Date CITY OF MUKILTEO CITY OF MONROE __________________________ ________________________ Authorized Signature Authorized Signature Name Name Title Title __________________________ __________________________ Date Date Packet Page 17 of 202 Interlocal Agreement for Administering CTR Plans and Programs (2011-2015) Page 5 of 10 CITY OF MOUNTLAKE TERRACE CITY OF BOTHELL __________________________ ________________________ Authorized Signature Authorized Signature Name Name Title Title __________________________ __________________________ Date Date Packet Page 18 of 202 Interlocal Agreement for Administering CTR Plans and Programs (2011-2015) Page 6 of 10 EXHIBIT "A" Statement of Work ADMINISTERING COMMUTE TRIP REDUCTION PLANS 1. INTRODUCTION Snohomish County (COUNTY) and the Cities of Arlington, Bothell, Edmonds, Lynnwood, Marysville, Mukilteo, Monroe and Mountlake Terrace (CITIES) have all adopted a similar CTR ordinance. This STATEMENT OF WORK is incorporated into the Interlocal Agreement titled "INTERLOCAL AGREEMENT FOR ADMINISTERING COMMUTE TRIP REDUCTION (CTR) PLANS” and outlines the tasks and responsibilities for each of the PARTIES. COMMUNITY TRANSIT TASKS 2. GENERAL TASKS 2.1 Maintain and administer the COUNTY'S and CITIES' CTR Plans and programs according to the provisions of RCW 70.94.521-551. 2.2 Provide Washington State Department of Transit (WSDOT) with a public hearing notice and copies of any proposed amendments to the COUNTY'S and/or CITIES' CTR ordinance, plan, and/or administrative guidelines within the first week of the public review period, and final copies of such action within one (1) month of adoption. 2.3 Establish and maintain books, records, documents, and other evidence and accounting procedures and practices, sufficient to reflect properly all direct and indirect costs of whatever nature claimed to have been incurred and anticipated to be incurred solely for the performance of this AGREEMENT. To facilitate the administration of the work described in this AGREEMENT, separate accounts shall be established and maintained within COMMUNITY TRANSIT'S existing accounting system or set up independently. Such accounts are referred to herein collectively as the "CTR Account". All costs charged to the CTR Account, including any approved services contributed by the COUNTY or the CITIES shall be supported by properly executed payrolls, time records, invoices, contracts, vouchers, or products evidencing in proper detail the nature and propriety of the charges. Packet Page 19 of 202 Interlocal Agreement for Administering CTR Plans and Programs (2011-2015) Page 7 of 10 3. SERVICES PROVIDED TO EMPLOYERS Provide affected employers with access to information and services, which will enable them to plan, implement, and manage Commute Trip Reduction (CTR) programs in a way that implements the County and Cities’ CTR plans and ordinances and meets individual employer goals. 3.1 Organize the content and format of a comprehensive CTR educational program for employers and jurisdictions. 3.2 Ensure that the comprehensive CTR educational program in Snohomish County is consistent with that developed by the Washington State Technical Assistance Team. 3.3 The COUNTY and each of the CITY ordinances require employers to appoint an Employee Transportation Coordinator (ETC) who will coordinate the CTR program at that employment site. Personalized assistance to and on-site presentations will be provided to ETCs, managers and employees. 3.4 Offer free to affected employers complete ETC training at least once every six months with priority given to designated ETCs. 3.5 Provide opportunities for ETCs to network with the ETCs of other affected employers. 3.6 Continue to provide outreach assistance to affected employers, new affected employers, and potential affected employers. 3.7 Provide information and technical assistance to affected employers in preparing and revising individual trip reduction programs. Explain legal requirements and assist with initial survey and plan development. 3.8 Work with County and Cities to develop new transportation demand management (TDM) programs to implement CTR Plans such as Telework, Alternative Work Hours, Subsidy/Incentives, and Parking Management. 3.9 Coordinate and facilitate employer networking, employer peer reinforcement and employer recognition programs. 3.10 Produce two annual rideshare campaigns and distribute campaign materials. 3.11 Plan, promote and implement employer transportation events, including customized worksite carpool and vanpool events, and provide event prizes. 3.12 Design and distribute CTR marketing materials, including new employee orientation materials, which employers may use or copy to implement, promote and manage CTR programs. 3.13 Provide employers with access to information, materials and programs that will enable them to adequately promote CTR programs. Produce customized marketing materials for employees upon request. Packet Page 20 of 202 Interlocal Agreement for Administering CTR Plans and Programs (2011-2015) Page 8 of 10 3.14 Be available to attend at least one rideshare fair or employer promotion per year for each affected employer. Encourage employers to work together and hold joint events. 3.15 Support CTR programs by offering supplemental services including a regional ride matching program, vanpool program and Guaranteed Ride Home program. 3.16 Take the lead in coordinating the survey process for employers. Provide survey workshops to employers during measurement years. Distribute and collect the state “CTR Employee Questionnaires” (survey forms). Work with the appropriate agencies to coordinate the processing of the employer surveys. Ensure that employers timely receive their survey results. Offer survey follow-up meetings to all employers. Return processed surveys to employers. 3.17 Send or deliver employer surveys for processing as instructed by WSDOT. Prior to sending or delivering any surveys, notify WSDOT of the name of the worksite(s) and the employer identification code(s) for any surveys being submitted for processing. The notification should be submitted via electronic mail, fax, or U.S. Postal Services. 4. ANNUAL EMPLOYER REPORTING & PROGRAM REVIEW 4.1 Notification of Newly Affected Sites as defined by COUNTY or CITY ordinance 4.1.1 Identify list of potential new sites and contact person and send notification inquiry to determine if affected. 4.1.2 Confirm status and secure state ID code. 4.1.3 Create timeline and legal file. 4.2 Site Analysis and Program Review 4.2.1 Notify affected employers when annual program reports are due and provide affected employers with limited direct assistance in preparing written program submissions. 4.2.2 Review program reports for completeness for new sites and for sites that made progress toward goal. 4.2.3 For sites that didn’t make progress, review survey results and recent programs and evaluate the potential for progress toward single occupant vehicle (SOV)/vehicle miles traveled (VMT) reduction. 4.2.4 Make recommendations to COUNTY and/or CITIES for program improvements for sites that did not make progress. 4.2.5 Generate approval/non-approval letter for COUNTY and/or CITIES signature. Packet Page 21 of 202 Interlocal Agreement for Administering CTR Plans and Programs (2011-2015) Page 9 of 10 4.2.6 Follow up with employers whose programs have not been approved and assist in modifying CTR program. 4.3 Exemptions & Modification 4.3.1 Receive employer requests for exemptions or modifications and send copy of request to COUNTY and/or CITIES. 4.3.2 Copy request to WSDOT for comment. 4.3.3 Review and analyze request and provide comments to COUNTY and/or CITIES; COUNTY and/or CITIES reviews analysis and provides directions to COMMUNITY TRANSIT. 4.3.4 Generate and send response if directed so by COUNTY and/or CITIES. 4.4 Records Maintenance 4.4.1 Maintain database and master file records on all affected worksites. 4.4.2 Provide WSDOT with electronic or hard copy of each employer program report approved within the quarter. 5. COORDINATION 5.1 Serve as a liaison between WSDOT and the COUNTY and CITIES for the purposes of RCW 70.94.521-551. 5.2. Coordinate CTR outreach and marketing efforts with the COUNTY, CITIES, and other transit agencies (including Metro CTR and Metro Rideshare) in order to create a comprehensive CTR program. 5.3 Collaborate directly with the CTR planning coordinators from the COUNTY and CITIES in working with affected employers to facilitate the timely development, submission, implementation, and revision of affected employer programs. 5.4 Coordinate and facilitate CTR coordinator’s group meetings consisting of the CTR planning coordinators from COUNTY and CITIES on a quarterly basis. This group functions as an information, coordination, and collaboration group for CTR activities. 5.5 Attend jurisdiction and regional meetings representing COUNTY’s and CITIES’ issues. 5.6 Work with COUNTY and CITIES to develop and fund new TDM programs to implement CTR Plans such as Telework, Alternative Work Hours, Subsidy/Incentives, and Parking Management. 5.7 Help jurisdictions monitor the progress of affected employers after CTR programs are implemented. 5.8 Meet at least annually with the COUNTY and each CITY to discuss employer CTR programs in each jurisdiction. Packet Page 22 of 202 Interlocal Agreement for Administering CTR Plans and Programs (2011-2015) Page 10 of 10 6. REPORTING 6.1 With an invoice voucher, submit to WSDOT quarterly progress reports in a format approved by WSDOT, that adequately and accurately assess the progress made by the COUNTY and CITIES in implementing RCW 70.94.521-551. These quarterly reports shall be submitted within forty- five (45) days of the end of each quarter for the first seven (7) quarters and within fifteen (15) days of the end of the final quarter. 6.2 Provide at least quarterly to WSDOT, updated employer information in the electronic format provided by WSDOT to satisfy the jurisdictions’ reporting requirement. 6.3 Provide the COUNTY and CITIES with quarterly progress reports including narrative summary of tasks performed. COUNTY AND CITIES TASKS 7. GENERAL TASKS 7.1 Provide COMMUNITY TRANSIT with copies of any proposed amendments to the CTR Plan and Ordinance. 7.2 Notify COMMUNITY TRANSIT of potential CTR-affected sites. Send notification letter to new sites. COMMUNITY TRANSIT will generate letter for COUNTY and CITIES signature. 7.3 Review business license procedure for ways that the COUNTY or CITIES can more effectively and efficiently provide Community Transit with information on potential newly affected employers. 7.4 Attend CTR coordinator group meetings at least twice annually. 7.5 Meet with COMMUNITY TRANSIT at least annually to discuss employer CTR programs. 7.6 Sign annual employer report approval/disapproval letters. 7.7 Attend mediation meetings with employers during program review process if necessary. 7.8 Review employer exemption/modification requests from analysis submitted by COMMUNITY TRANSIT. Provide direction to COMMUNITY TRANSIT draft response to employer (if desired by COUNTY and/or CITIES). 7.9 Report to COMMUNITY TRANSIT, at least annually, all activities made to implement the CTR Plan or Ordinance with an estimation of costs. Packet Page 23 of 202 AM-4124   Item #: 1. E. City Council Committee Meetings Date: 08/09/2011 Time:5 Minutes   Submitted For:Mike De Lilla Submitted By:Megan Cruz Department:Engineering Committee:Community/Development Services Type:Action Information Subject Title Authorization for Mayor to sign Interlocal Agreement with the City of Lynnwood to install waterline as part of Lynnwood's 76th Ave W Sewer Improvement Project. Recommendation from Mayor and Staff Forward item to the consent agenda for approval at the August 15, 2011 Council meeting. Previous Council Action None. Narrative The City of Lynnwood is in the process of designing a new sewer trunk main in 76th Ave W to increase flow capacity in their existing sewer trunk main. The City of Edmonds owns an existing 6” cast iron watermain under 76th Ave W that per the 2010 Comprehensive Water System Plan is in need of replacement and upsizing. Since Lynnwood's new sewer pipe will require that this portion of 76th Ave W be repaved, the City has coordinated this Interlocal Agreement, Exhibit 1, so the waterline can be designed and constructed as part of the City of Lynnwood’s project. This will result in overall project cost savings and minimize the City’s future impacts on the repaved portion of 76th Ave W. This project will be funded as part of the 2012 Waterline Replacement Program. The total budget for this project is $520,000.   Attachments Exhibit 1-Interlocal Agreement with City of Lynnwood Form Review Inbox Reviewed By Date Engineering Robert English 08/04/2011 02:58 PM Public Works Linda Hynd 08/05/2011 12:30 PM City Clerk Linda Hynd 08/05/2011 12:31 PM Mayor Linda Hynd 08/05/2011 02:25 PM Final Approval Linda Hynd 08/05/2011 02:27 PM Form Started By: Megan Cruz Started On: 08/03/2011 09:00 AM Final Approval Date: 08/05/2011  Packet Page 24 of 202 76TH AVENUE WEST WATER MAIN INSTALLATION DESIGN AND CONSTRUCTION between THE CITY OF EDMONDS and THE CITY OF LYNNWOOD THIS INTERLOCAL AGREEMENT (hereinafter, “the Agreement”) is entered into under the authority of the Interlocal Cooperation Act, Chapter 39.34 RCW, between the City of Edmonds (hereinafter “EDMONDS”), a municipal corporation organized under the laws of the State of Washington, and the City of Lynnwood (hereinafter “LYNNWOOD”), a municipal corporation organized under the laws of the State of Washington (collectively “the Parties”), to provide for the design and construction of the EDMONDS 76th Avenue West Water Main Installation project in conjunction with the design and construction of the LYNNWOOD 76th Avenue West Sewer Trunkline Improvement project, and to define the Parties’ respective rights, obligations, costs and liabilities regarding this undertaking. RECITALS WHEREAS, Chapter 39.34 RCW authorizes two or more political subdivisions or units of local government of the State of Washington to cooperate on a basis of mutual advantage to provide for services and facilities; and WHEREAS, the EDMONDS 2010 Water Comprehensive Plan identifies a project to install 8-inch ductile iron pipe water main, fire hydrants, and appurtenances on 76th Avenue West from Braemar Drive to 176th Street SW, and WHEREAS, there is a 6-inch Cast Iron pipe watermain, fire hydrants, and appurtenances in EDMONDS on 76th Avenue W from 176th Street SW to 180th Street SW that will also need to be replaced and upsized to 8-inch ductile iron pipe, along with fire hydrants, and appurtenances, due to pipe age, and WHEREAS, the 76th Avenue West Sewer Trunkline Replacement is identified in the LYNNWOOD 2010 Utility Rate Study and LYNNWOOD Capital Facilities Plan as part of the Sewer Line Replacement Program (project #SE2006053A); and WHEREAS, LYNNWOOD is presently designing their 76th Sewer Trunkline Improvement project to increase the capacity of section of the existing 24” sewer trunk main to the Lynnwood Wastewater Treatment Plant at 76th Avenue West between 175th Street SW and approximately 183rd PL SW; and WHEREAS, integrating EDMONDS’ new water main installation into LYNNWOOD’s construction process for the 76th Avenue West Sewer Trunkline Improvements project would be more expedient, less expensive, and less disruptive to the public than undertaking the projects separately; and WHEREAS, the Parties mutually desire to establish a formal arrangement under which EDMONDS will pay LYNNWOOD a specified sum in exchange for LYNNWOOD’s design and construction of the EDMONDS water main conduit; and Packet Page 25 of 202 WHEREAS, LYNNWOOD has selected a qualified design consultant through a competitive process for their sewer improvements, and it therefore becomes more expedient, less expensive, and more efficient for EDMONDS to to use the same qualified design consultant currently under contract with LYNNWOOD for their water main improvements, and WHEREAS, the Parties desire to enter into this Agreement for the purpose of defining their respective rights, obligations, costs and liabilities regarding this undertaking; and WHEREAS, the City Councils of the City of Edmonds and the City of Lynnwood have taken appropriate action to approve their respective City’s entry into this Agreement; NOW, THEREFORE, in consideration of the terms, conditions and covenants contained herein, the Parties agree as follows: TERMS Section 1. Purpose. The purpose of this Agreement is to establish a formal arrangement under which EDMONDS will pay LYNNWOOD to design and construct the EDMONDS 76th Avenue West water main installation in conjunction with LYNNWOOD’s design and construction of the proposed LYNNWOOD 76th Avenue West Sewer Trunkline Improvements (collectively, “the Project”). The terms, conditions, and covenants of this Agreement shall accordingly be interpreted to advance the new 76th Avenue West water main installation purpose. This Agreement further seeks to allocate and define the Parties’ respective rights, obligations, costs and liabilities concerning the establishment, operation and maintenance of this undertaking. Section 2. Term. This Agreement shall be effective upon execution by the Parties hereto. Unless terminated in accordance with Section 3, this Agreement shall remain effective until the sooner of the following events: (a) EDMONDS’ written acceptance of all infrastructure provided pursuant hereto, or (b) December 31, 2014, when it shall expire automatically. The Parties may at their option renew and/or amend this Agreement for a mutually agreed upon term by a writing signed by both Parties. Section 3. Termination. Either Party may terminate this Agreement with or without cause by providing the other Party with 30 days written notice of its intent to terminate. Termination or expiration shall not alter the EDMONDS payment obligations under Section 6 for services already rendered and shall not alter the Parties’ respective obligations under Section 9 and Section 13 of this Agreement. Section 4. Obligations of EDMONDS. EDMONDS agrees to: A. Provide periodic payments to LYNNWOOD to reimburse LYNNWOOD for its costs in design and construction of the EDMONDS 76th Avenue West water main pursuant to Section 6 of this Agreement. Packet Page 26 of 202 B. Respond promptly to information requests submitted by LYNNWOOD or its agents regarding the new water main. C. Review and approve plans and specifications prepared by the consultant for the water main installation. Approval shall not be unreasonably withheld. D. Provide (apply for and obtain) City of Edmonds permits for water main work within the City of Edmonds at no cost to LYNNWOOD. Provided, that nothing herein shall be construed as waiving or otherwise abridging the City of Edmonds regulatory authority for work within the City of Edmonds. E. Provide timely review of utility designs prepared by LYNNWOOD’s consultant, and complete final design approval by the timelines established by LYNNWOOD to meet their construction bidding schedule. F. Obtain Bid Award concurrence from the EDMONDS City Council in accordance with section 7 within 45 days of the bid opening. If EDMONDS City Council fails to act within the 45 day time period, LYNNWOOD has the option to eliminate the EDMONDS work schedules from the contract. Section 5. Obligations of LYNNWOOD. LYNNWOOD agrees to: A. Provide and incorporate the EDMONDS 76th Avenue West water main design into the LYNNWOOD design for sewer trunkline improvements. B. Assume responsibility for constructing the new 76th Avenue West water main in accordance with the design plans approved by EDMONDS (including but not limited to securing all necessary consultants, contractors, and subcontractors). All construction contracts shall be procured through a formal competitive bidding process consistent with applicable State law. LYNNWOOD shall be solely and exclusively responsible for ensuring the compliance of said bidding process with all applicable procedures required under state and local regulations. C. Submit to EDMONDS written invoices for payment in accordance with Section 6. Include copies of invoices from consultants and contractors, clearly indicating the EDMONDS portion of the invoices. Provide EDMONDS a brief written progress report with each invoice, describing in reasonable detail all work performed on the new water main during the period covered by the invoice. D. Assume lead agency status and sole responsibility for applying for and obtaining any and all regulatory permits necessary to complete the new Packet Page 27 of 202 water main in conjunction with the LYNNWOOD 76th Avenue West Sewer Trunkline Improvement Project, including but not limited to SEPA and building permits. E. Provide EDMONDS personnel reasonable access to the Project’s construction area for purposes of monitoring the progress of work performed on the new water main. F. Respond reasonably to information requests submitted by EDMONDS or its agents regarding the Project. Section 6. Payment Schedule. The Parties agree to the following billing and payment schedule: A. For each outside construction contract expense incurred by LYNNWOOD regarding the Project, LYNNWOOD shall, within 30 days of the date LYNNWOOD is billed or invoiced for any undisputed charge by its consultants, contractors and subcontractors, submit an invoice to EDMONDS for the EDMONDS share of said expense for the new water main. Said invoice shall contain a reasonably detailed explanation of the methodology utilized by LYNNWOOD in calculating the EDMONDS share of each expense. Contracts for construction shall provide for separate bid schedules, or other means to clearly identify the EDMONDS portion of the Project cost for the new water main. Contracts for design shall identify all tasks and work performed associated with EDMONDS portion of the design on invoices, fee estimates and project status reports. Time is of the essence and LYNNWOOD shall not unreasonably delay submittal of EDMONDS share of expenses. B. Within 30 days of receiving any invoice pursuant to subsection 6.A, EDMONDS shall tender payment to LYNNWOOD in the form of a check, money order or other certified funds for the invoiced amount; PROVIDED THAT: (1) The total payment by EDMONDS for invoices submitted by LYNNWOOD shall not exceed the actual cost of the fee estimate, bid response and/or change order for the water main (plus 8.5% of actual direct design and/or construction contract cost for project management, construction management and administration per Section 6.C) without prior written approval by EDMONDS for each expense incurred in excess of said amount; (2) If LYNNWOOD fails to submit an expense invoice in a timely manner, the time for EDMONDS’ payment shall be extended as is reasonably necessary to comply with budget and state auditor guidelines as may be applicable; Packet Page 28 of 202 (3) LYNNWOOD shall inform EDMONDS in writing in advance if expenditures necessary to complete the water main design and installation are expected to exceed these amounts. C. Recognizing that LYNNWOOD shall be reimbursed for their costs of incorporating the EDMONDS utilities work into the design and construction contracts for the LYNNWOOD 76th Avenue West Sewer Trunkline Improvement project, EDMONDS agrees to pay LYNNWOOD an amount equal to 8.5% of the actual design and construction contract cost for the EDMONDS utilities work for all in-house administrative costs incurred by LYNNWOOD to accomplish the design and construction of the new water main in conjunction with the LYNNWOOD 76th Avenue West Sewer Trunkline Improvement project. This amount will be invoiced by LYNNWOOD and paid by EDMONDS as a 8.5% markup on applicable consultant and/or contractor invoices submitted to EDMONDS for payment in accordance with Section 6B above. D. In the event that the Parties disagree regarding the EDMONDS share of any expense incurred by LYNNWOOD regarding the Project, the Parties may agree to submit the question for resolution by a mediator or arbitrator acceptable to both Parties. Section 7. Construction Bid Acceptance. Upon opening of construction bids, LYNNWOOD shall obtain concurrence from EDMONDS prior to award of the water main portion of the construction contract. Within 15 days after bid opening and prior to acceptance of the bid and award of a contract, LYNNWOOD shall inform EDMONDS of its financial responsibility. Concurrence with bid award by EDMONDS shall be within forty-five (45) days of receipt of notice of the bid amounts and EDMONDS financial responsibility. EDMONDS agrees to, if contract award is authorized in a bid amount acceptable to their City Council, to authorize an additional 10% of the contract award amount for the EDMONDS utilities work as a construction contingency, subject to the change order authorization limitations in Section 8. The EDMONDS Public Works Director is authorized to determine the water main bid items/schedules, or combinations thereof, for which a contract will be awarded, provided that the total cost does not exceed the limits established in Section 6. Section 8. Construction Change Orders. The following change order authorizations are hereby established for schedules and items of work to be paid by EDMONDS: A. The LYNNWOOD resident engineer may authorize change order requests up to $2,000 per change order and shall immediately provide a copy of the change order authorization to the EDMONDS City Engineer. Packet Page 29 of 202 B. The LYNNWOOD Deputy Public Works Director / City Engineer, with the prior written concurrence of the EDMONDS City Engineer, may authorize change order requests up to $10,000 per change order. C. The Mayor of LYNNWOOD, with the prior written concurrence of the Mayor of EDMONDS, may authorize change order requests up to $50,000 per change order. D. Change order requests exceeding $50,000 per change order will be reviewed by the respective City Councils of LYNNWOOD and EDMONDS for approval or denial, and any such approval shall require the concurrence of both City Councils. Change orders involving a change in scope shall have the scope change authorized in writing by EDMONDS, and be subject to the 8.5% LYNNWOOD construction management and administration fee in Section 6.C. Section 9 Construction Claims and Disputes. In the event construction claims for additional payment are made by the construction contractor and/or disputes result, LYNNWOOD will endeavor to resolve the claims/disputes and obtain EDMONDS approval prior to finalizing resolution. EDMONDS will assist in resolving claims/disputes as necessary. Financial responsibility for legitimate construction claims/disputes arising from water main construction for EDMONDS shall be the sole responsibility of EDMONDS. In the event such claims exceed the financial parameters established in Section 6, EDMONDS will authorize additional funding to cover the cost of the claim/dispute. Section 10. Construction Project Acceptance. Upon satisfactory completion of the water main work, resolution of all claims for additional payment, completion of all contract closeout documents and agreement between LYNNWOOD and the contractor regarding the final contract quantities for the water main portions of the project, LYNNWOOD shall recommend final acceptance to the EDMONDS City Engineer. Approval by the EDMONDS City Council shall be the responsibility of EDMONDS staff. Section 11. Ownership and Disposition of Property. The new water main, and all appurtenances thereof, constructed pursuant to this Agreement shall become and remain the exclusive property of EDMONDS upon completion. The 76th Avenue West Sewer Trunkline improvements constructed shall become and remain the exclusive property of LYNNWOOD upon completion. Section 12. Administration; No Separate Entity Created. Pursuant to RCW 39.34.030, the parties hereby appoint a Contract Administrator who will be responsible for administering this Agreement, and at the direction of the parties, this Contract Administrator shall take such action as is necessary to ensure that this Agreement is Packet Page 30 of 202 implemented in accordance with its terms. The parties hereby designate the LYNNWOOD Public Works Director, or his designee, as the Contract Administrator for this Agreement. No separate legal entity is formed by this Agreement. Section 13. Release, Indemnification and Hold Harmless Agreement. Each Party to this Agreement shall be responsible for its own negligent and/or wrongful acts or omissions, and those of its own agents, employees, representatives or subcontractors, to the fullest extent required by laws of the State of Washington. Each Party agrees to protect, indemnify and save the other Party harmless from and against any and all such liability for injury or damage to the other party or the other Party’s property, and also from and against all claims, demands, and causes of action of every kind and character arising directly or indirectly, or in any way incident to, in connection with, or arising out of work performed under the terms hereof, caused by its own fault or that of its agents, employees, representatives or subcontractors. Each party specifically promises to indemnify the other party against claims or suits brought under Title 51 RCW by its own employees, contractors, or subcontractors, and waives any immunity that each party may have under that title with respect to, but only to, the limited extent necessary to indemnify the other party. This waiver has been mutually negotiated by the parties. Each party shall also indemnify and hold the other party harmless from any wage, overtime or benefit claim of any of the first party's employees, agents, representatives, contractors or subcontractors performing services under this Agreement. Each party further agrees to fully indemnify the other party from and against any and all costs of defending any such claim or demand to the end that the other party is held harmless therefrom. Section 14. Governing Law and Venue. This Agreement shall be governed by the laws of the State of Washington. Any action arising out of this Agreement shall be brought in Snohomish County Superior Court. Section 15. No Employment Relationship Created. The Parties agree that nothing in this Agreement shall be construed to create an employment relationship between EDMONDS and any employee, agent, representative or contractor of LYNNWOOD, or between LYNNWOOD and any employee, agent, representative or contractor of EDMONDS. Section 16. Notices. Notices to EDMONDS shall be sent to the following address: City of Edmonds City Engineer 121 Fifth Avenue N. Edmonds, WA 98020 Notices to LYNNWOOD shall be sent to the following address: City of Lynnwood Deputy Public Works Director / City Engineer Packet Page 31 of 202 19100 44th Avenue W., P.O. Box 5008 Lynnwood, WA 98046-5008 Section 17. Duty to File Agreement With County Auditor. EDMONDS shall, after this Agreement is executed by both Parties, file this Agreement with the Snohomish County Auditor. Section 18. Integration. This document constitutes the entire embodiment of the Agreement between the Parties, and, unless modified in writing by an amendment to this Interlocal Agreement signed by the Parties hereto, shall be implemented as described above. Section 19. Non-Waiver. Waiver by any Party of any of the provisions contained within this Agreement, including but not limited to any performance deadline, shall not be construed as a waiver of any other provisions. CITY OF EDMONDS CITY OF LYNNWOOD By: By: Mike Cooper, Mayor Don Gough, Mayor Date: Date: ATTEST: ATTEST: ________________________ ________________________ Sandra S. Chase, City Clerk Lorenzo Hines, Finance Director APPROVED AS TO FORM: APPROVED AS TO FORM: ________________________ _________________________ Sharon Cates, City Attorney Rosemary Larson, City Attorney Packet Page 32 of 202 AM-4126   Item #: 1. F. City Council Committee Meetings Date: 08/09/2011 Time:20 Minutes   Submitted By:Rob Chave Department:Planning Review Committee: Community/Development Services Committee Action: Recommend Review by Full Council Type:Action  Information Subject Title Potential amendments to downtown BD zones. (PLEASE NOTE: this item contains all of the material from the July 26th public hearing; the material is repeated here for reference. The "recommendation" below is specifically geared for the Committee discussion, however.) Recommendation from Mayor and Staff Review for further Council consideration and action. In order to move forward, the Council could elect to act on a subset of the Planning Board's recommendations (e.g. the first three areas) and take more time to review and develop a consensus proposal for the Board's recommendations regarding "development agreements." Previous Council Action Council's CSDS Committee discussed several staff-initiated issues pertaining to downtown BD zones and asked the Planning Board to review BD zoning issues (see Exhibit 7). Narrative After a number of months of discussion and work, the Planning Board held a public hearing on June 8, 2011, on proposed amendments to ECDC 16.43, code requirements pertaining to the downtown BD zones. The Planning Board’s recommended amendments resulting from that public hearing are contained in Exhibit 1, which shows a markup version displaying changes from the existing code. A staff summary of the proposed changes is contained in Exhibit 2, and the Planning Board minutes are in Exhibit 3. An earlier staff memo describing some of the issues involved is contained in Exhibit 4, with the hearing draft of the amendments that was considered by the Planning Board contained in Exhibit 5. A map of the existing downtown BD zones can be found in Exhibit 6. Attachments Exhibit 1: PB draft code amendments Exhibit 2: Staff summary of PB recommendations Exhibit 3: Planning Board minutes Exhibit 4: Staff memo from 6/8/2011 PB hearing Exhibit 5: Draft amendments from 6/8/2011 PB hearing Exhibit 6: Map of BD zones Exhibit 7: CSDS minutes of 8/11/2010 Form Review Inbox Reviewed By Date Community Services/Economic Dev.Stephen Clifton 08/05/2011 08:05 AM City Clerk Linda Hynd 08/05/2011 08:15 AM Mayor Mike Cooper 08/05/2011 09:35 AM Final Approval Linda Hynd 08/05/2011 10:09 AM Packet Page 33 of 202 Form Started By: Rob Chave Started On: 08/04/2011  Final Approval Date: 08/05/2011  Packet Page 34 of 202 1 Chapter 16.43 BD – DOWNTOWN BUSINESS Sections: 16.43.000 Purposes. 16.43.010 Subdistricts. 16.43.020 Uses. 16.43.030 Site development standards. 16.43.035 Design standards – BD1 zone. 16.43.040 Operating restrictions. 16.43.000 Purposes. The BD zone has the following specific purposes in addition to the general purposes for business and commercial zones listed in Chapter 16.40 ECDC: A. Promote downtown Edmonds as a setting for retail, office, entertainment and associated businesses supported by nearby residents and the larger Edmonds community, and as a destination for visitors from throughout the region. B. Define the downtown commercial and retail core along streets having the strongest pedestrian links and pedestrian-oriented design elements, while protecting downtown’s identity. C. Identify supporting arts and mixed use residential and office areas which support and complement downtown retail use areas. Provide for a strong central retail core at downtown’s focal center while providing for a mixture of supporting commercial and residential uses in the area surrounding this retail core area. D. Focus development between the commercial and retail core and the Edmonds Center for the Arts on small-scale retail, service, and multifamily residential uses. [Ord. 3700 § 1, 2008]. 16.43.010 Subdistricts. The “downtown business” zone is subdivided into five distinct subdistricts, each intended to implement specific aspects of the comprehensive plan that pertain to the Downtown Waterfront Activity Center. Each subdistrict contains its own unique mix of uses and zoning regulations, as described in this chapter. The five subdistricts are: BD1 – Downtown Retail Core; BD2 – Downtown Mixed Commercial; BD3 – Downtown Convenience Commercial; BD4 – Downtown Mixed Residential; BD5 – Downtown Arts Corridor. [Ord. 3700 § 1, 2008]. Packet Page 35 of 202 2 16.43.020 Uses. A. Table 16.43-1. Permitted Uses BD1 BD2 BD3 BD4 BD5 Commercial Uses Retail stores or sales A A A A A Offices (including professional offices) A1 A A A A Service uses (including banks and real estate businesses) A A A A A Restaurants and food service establishments A A A A A Retail sales requiring intensive outdoor display or storage areas, such as trailer sales, used car lots (except as part of a new car sales and service dealer), and heavy equipment storage, sales or services X X X X X Enclosed fabrication or assembly areas associated with and on the same property as an art studio, art gallery, restaurant or food service establishment that also provides an on-site retail outlet open to the public A A A A A Automobile sales and service X A A X X Dry cleaning and laundry plants which use only nonflammable and nonexplosive cleaning agents C A A A X Printing, publishing and binding establishments C A A A C Community-oriented open air markets conducted as an outdoor operation and licensed pursuant to provisions in the Edmonds City Code A A A A A Residential Uses Single-family dwelling A A A A A Multiple dwelling unit(s) A A A A A Other Uses Bus stop shelters A A A A A Churches, subject to the requirements of ECDC 17.100.020 A A A A A Primary and high schools, subject to the requirements of ECDC 17.100.050(G) through (R) A A A A A Local public facilities, subject to the requirements of ECDC 17.100.050 C C C A C Packet Page 36 of 202 3 Permitted Uses BD1 BD2 BD3 BD4 BD5 Neighborhood parks, natural open spaces, and community parks with an adopted master plan subject to the requirements of ECDC 17.100.070 A A A A A Off-street parking and loading areas to serve a permitted use B B B B B Commuter parking lots in conjunction with a facility otherwise permitted in this zone B B B B X Commercial parking lots C C C C X Wholesale uses X X C X X Hotels and motels A A A A A Amusement establishments C C C C C Auction businesses, excluding vehicle or livestock auctions C C C C C Drive-in or drive-through businesses CX C A C X Laboratories X C C C X Fabrication of light industrial products not otherwise listed as a permitted use X X C X X Day-care centers C C C A C Hospitals, health clinics, convalescent homes, rest homes, sanitariums X C C A X Museums and art galleries of primarily local concern that do not meet the criteria for regional public facilities as defined in ECDC 21.85.033 A A A A A Zoos and aquariums of primarily local concern that do not meet the criteria for regional public facilities as defined in ECDC 21.85.033 C C C C A Counseling centers and residential treatment facilities for current alcoholics and drug abusers X C C A X Regional parks and community parks without a master plan subject to the requirements of ECDC 17.100.070 C C C C C Outdoor storage, incidental to a permitted use D D D D D Aircraft landings as regulated by Chapter 4.80 ECC D D D D D Notes: A = Permitted primary use B = Permitted secondary use C = Primary uses requiring a conditional use permit D = Secondary uses requiring a conditional use permit X = Not permitted 1 = Office uses in the BD1 zone may not be located within a designated street front Packet Page 37 of 202 4 For conditional uses listed in Table 16.43-1, the use may be permitted if the proposal meets the criteria for conditional uses found in Chapter 20.05 ECDC, and all of the following criteria are met: 1. Access and Parking. Pedestrian access shall be provided from the sidewalk. Vehicular access shall only be provided consistent with ECDC 18.80.060. When a curb cut is necessary, it shall be landscaped to be compatible with the pedestrian streetscape and shall be located and designed to be as unobtrusive as possible. 2. Design and Landscaping. The project shall be designed so that it is oriented to the street and contributes to the pedestrian streetscape environment. Fences more than four feet in height along street lot lines shall only be permitted if they are at least 50 percent open, such as a lattice pattern. Blank walls shall be discouraged, and when unavoidable due to the nature of the use shall be decorated by a combination of at least two of the following: a. Architectural features or details; b. Artwork; c. Landscaping. [Ord. 3700 § 1, 2008]. Packet Page 38 of 202 5 16.43.030 Site development standards. A. Development within the BD zones shall meet the following site development standards, unless a development is approved pursuant to ECDC 20.08 which meets the requirements of ECDC 16.43.050. Table 16.43-2. Sub District Minimum Lot Area Minimum Lot Width Minimum Street Setback Minimum Side Setback1 Minimum Rear Setback1 Maximum Height2 Minimum Height of Ground Floor within the Designated Street Front4 BD15 0 0 0 0 0 25' 15' BD25 0 0 0 0 0 25' 12' BD35 0 0 0 0 0 25' 12' BD43,5 0 0 0 0 0 25' 12' BD55 0 0 0 0 0 25' 12' 1 The setback for buildings and structures located at or above grade (exempting buildings and structures entirely below the surface of the ground) shall be 15 feet from the lot line adjacent to residentially (R) zoned property. 2 Specific provisions regarding building heights are contained in ECDC 16.43.030(C). 3 Within the BD4 zone, site development standards listed in Table 16.43-2 apply when a building contains a ground floor consisting of commercial space to a depth of at least 60 45 feet measured from the street front of the building. If a proposed building does not meet this ground floor commercial space requirement (e.g., an entirely residential building is proposed), then the building setbacks listed for the RM-1.5 zone shall apply. See ECDC 16.43.030(B)(8) for further details. 4 “Minimum height of ground floor within the designated street-front” means the vertical distance from top to top of the successive finished floor surfaces for that portion of the ground floor located within the designated street front (see ECDC 16.43.030(B)); and, if the ground floor is the only floor above street grade, from the top of the floor finish to the top of the ceiling joists or, where there is not a ceiling, to the top of the roof rafters. “Floor finish” is the exposed floor surface, including coverings applied over a finished floor, and includes, but is not limited to, wood, vinyl flooring, wall-to-wall carpet, and concrete, as illustrated in Figure 16.43-1. Figure 16.43-1 shows a ground floor height of 15 feet; note that the “finished” ceiling height is only approximately 11 feet in this example. 5 Site development standards for single-family dwellings are the same as those specified for the RS-6 zone. Packet Page 39 of 202 16.43.030 Map 16.43-1: Designated Street Front for Properties in the BD1BD Zones Packet Page 40 of 202 Edmonds Community Development Code 16.43.030 Figure 16.43-1: Ground Floor Height Measurement B. Ground Floor. This section describes requirements for development of the ground floor of buildings in the BD zones. Packet Page 41 of 202 8 1. For all BD zones, the ground floor is considered to be that floor of a building which is closest in elevation to the finished grade along the width of the side of the structure that is principally oriented to the designated street front of the building (this is normally the adjacent sidewalk). For the purposes of this section, the ground “floor” is considered to be the sum of the floor planes which, in combination, run the full extent of the building and are closest in elevation to one another. For the purposes of this chapter, the definition of “ground floor” contained in ECDC 21.35.017 does not apply. 2. Designated Street Front. Map 16.43-1 shows the streets that define the designated street front for all properties lying within the BD1 zones, which is The designated street front is defined as the 30 45 feet measured perpendicular to the indicated street front of the building lot fronting on each of the mapped streets. For all other BD zones, the designated street front is established as the first 60 feet of the lot measured perpendicular to any street right-of-way, excluding alleys. 3. Minimum Height of the Ground Floor within the Designated Street Front. The minimum height of the ground floor specified in Table 16.43-2 only applies to the height of the ground floor located within the designated street front established in subsection (B)(2) of this section. 4. Access to Commercial Uses within the Designated Street Front. When a commercial use is located on the ground floor within a designated street front as defined in subsection (B)(2) of this section, the elevation of the ground floor and associated entry shall be within seven inches of the grade level of the adjoining sidewalk. “Grade” shall be as measured at the entry location. Portions of the ground floor outside the designated street front of the building need not comply with the access requirements specified in this section. 5. When the designated street front of a building is on a slope which does not allow both the elevation of the entry and ground floor within the designated street front to be entirely within seven inches of the grade level of the sidewalk, as specified in subsection (B)(4) of this section, the portion of the ground floor of the building located within the designated street front may be designed so that either: a. The entry is located within seven inches of the grade of the adjacent sidewalk, and the commercial portion of the ground floor located within the designated street front is within seven inches of the grade level of the entry; or b. The building may be broken up into multiple frontages, so that each entry/ground floor combination is within seven inches of the grade of the sidewalk. c. For corner lots, a primary entry shall be established for the purposes of determining where the ground floor entry rules detailed in this section shall apply. The first choice for the primary entry shall be either 5th Avenue or Main Street. In the case of the BD5 zone, the primary entry shall always be on 4th Avenue. Packet Page 42 of 202 16.43.030 6. Within the BD1 zone, development on the ground floor shall consist of only commercial uses, except that parking may be located on the ground floor so long as it is not located within the designated street front. 7. Within the BD2 and BD3 zones, development on the ground floor shall consist of only commercial uses within the designated street front. Any permitted use may be located on the ground floor outside of the designated street front. 8. Within the BD4 zone, there are two options for developing the ground floor of a building. One option is to develop the ground floor with commercial space, meeting the same requirements detailed for the BD2 and BD3 zones in subsection (B)(7) of this section. As a second option, if more residential space is provided so that the ground floor does not meet the commercial use requirements described in subsection (B)(7) of this section, then the building setbacks listed for the RM-1.5 zone shall apply. In the case where RM-1.5 setbacks are required, the required street setback shall be landscaped and no fence or wall in the setback shall be over four feet in height above sidewalk grade unless it is at least 50 percent open, such as in a lattice pattern. 9. Within the BD5 zone, one option is to develop the ground floor with commercial space, meeting the same requirements detailed for the BD2 zone in subsection (B)(7) of this section. When development of the ground floor does not conform to these requirements, then development within the BD5 zone shall meet the following requirements: a. The building shall be oriented to 4th Avenue. “Orientation to 4th Avenue” shall mean that: i. At least one building entry shall face 4th Avenue. ii. If the building is located adjacent to the public right-of-way, architectural details and/or applied art shall be incorporated into the building design to add interest at the pedestrian (i.e., ground floor) level. iii. If the building is set back from the street, landscaping and/or artwork shall be located between the building and the street front. b. Live/work uses are encouraged within the BD5 zone, and potential live/work space is required for new residential buildings if no other commercial use is provided on-site. i. If multiple residential uses are located on the ground floor, the building shall incorporate live/work space into the ground floor design in such a way as to enable building occupants to use portion(s) of their space for a commercial or art/fabrication use. “Live/work space” means a structure or portion of a structure that combines a commercial or manufacturing activity that is allowed in the zone with a residential living space for the owner of the commercial or manufacturing business, or the owner’s employee, and that person’s household. The live/work space shall be designed so that a commercial or fabrication or home occupation use can be established within the space. Packet Page 43 of 202 10 Figure 16.43-2: BD5 Development Building at right (foreground) shows landscaping located between building and street. Building at left (background) shows commercial space integrated with residential uses, and the entry oriented to the street. 10. Exceptions and Clarifications. The regulations for the ground floor contained in subsections (B)(1) through (9) of this section apply with the following exceptions or clarifi- cations: a. That in all areas the provision of pedestrian access to permitted residential uses is allowed as a permitted secondary use. b. The restrictions on the location of residential uses shall not apply when a single- family use is the only permitted primary use located on the property. c. Existing buildings may be added onto or remodeled without adjusting the existing height of the ground floor to meet the specified minimum height, so long as the addition or remodel does not increase the building footprint or its frontage along a street by more than 25 percent. Permitted uses may occupy an existing space regardless of whether that space meets the ground floor requirements for height. d. Parking is not considered to be a commercial use for the purposes of satisfying the ground floor commercial use requirement within the designated street front (e.g., when the first 30 45 feet of a building are within a designated street front in the BD1 zone, parking may not be located within that 30 45 feet). e. For properties within the BD2 or BD3 zone which have less than 90 feet of depth measured from the street front, parking may be located in the rearmost 30 45 feet of the property, even if a portion of the parking extends into the first 60 45 feet of the building. In no case shall the depth of commercial space as measured from the street front of the building be less than 30 feet. Packet Page 44 of 202 11 f. Within the BD2, BD3 and BD4 zones, if the first 60 45 feet of the building as measured perpendicular to the street consist only of commercial uses and permitted secondary uses, then permitted multiple-family residential unit(s) may be located behind the commercial uses. g. Recodified as ECDC 22.43.050(B)(4). h. Within the BD1 zone, each commercial space located on the ground floor within the designated street front shall be directly accessible by an entry from the sidewalk. C. Building Height Regulations. 1. The basic height limit is 25 feet (see definition of “height” detailed in ECDC 21.40.030). 2. Within the BD1, BD2, BD3, or BD4 zones, an additional five feet of building height – increasing the overall building height to a maximum of 30 feet – may be obtained if the building meets the ground floor requirements for the zone as enumerated in ECDC 16.43.030(B). Step- Back Rules. The following rules apply when calculating the maximum building height for any building in the specified zone(s) (see Figures 16.43-3 and 16.43-4 for illustrated examples). a. Within the BD2, BD3, or BD4 zones, an additional five feet of building height, not to exceed 30 feet, may be obtained if the building is designed to meet all of the following conditions: i. A building step-back is provided within 15 feet of any street front. Within the 15- foot step-back, the maximum building height is the lesser of 25 feet above grade at the property line (normally the back of the sidewalk) or 30 feet above the “average level” as defined in ECDC 21.40.030. For corner lots, a 15-foot step-back is required along both street fronts. If a building located on a corner lot has insufficient lot width (i.e., less than 40 feet of lot width) to enable it to provide the required step-back on both street fronts, then the step-back may be waived facing the secondary street. This waiver may not be granted for building step-backs required from Fifth Avenue, Dayton Street, or Main Street. ii. A 15-foot step-back is provided from the property line opposite the street front. Within the 15-foot step-back, the maximum building height is the lesser of 25 feet above grade or 30 feet above the “average level” as defined in ECDC 21.40.030. For corner lots for which a 15-foot step-back is required on more than one street front, there is no 15-foot step-back required from the property line opposite each street front. For the purpose of determining step-back requirements, alleys are not considered to be streets. iii. A building setback, in which the entire building is set back from the property line, may be substituted on a foot-for-foot basis for the required building step-back. For example, a five-foot building setback can be combined with a 10-foot building step-back to meet the 15-foot step-back requirement. b. Within the BD1 zone, building height may be a maximum of 30 feet in order to provide for a minimum height of 15 feet for the ground floor. The allowable building height is measured from the “average level” as defined in ECDC 21.40.030. Packet Page 45 of 202 12 Note: the diagrams on this page are deleted in the Planning Board recommendation. Packet Page 46 of 202 13 3. Within the BD5 zone, the maximum height may be increased to 30 feet if the building meets one of the following conditions. In addition, if the building is located within 15 feet of the public right-of-way, architectural details and/or applied art shall be incorporated into the building design, and the ground floor shall be distinguished from the upper portions of the building through the use of differences in materials, windows, and/or architectural forms. a. All portions of the building above 25 feet consist of a pitched roof such that the pitch of all portions of the roof is at least six-by-12 and the roof includes architectural features, such as dormers or gables of a steeper pitch, that break up the roof line into distinct segments. b. If the building does not make use of a pitched roof system as described in subsection (C)(3)(a) of this section, the building shall meet the same requirements step-backs shall be required the same as for the BD2 zone, as described detailed in subsection (C)(2) of this section. 4. Height Exceptions. In addition to the height exceptions listed in ECDC 21.40.030, the following architectural features are allowed to extend above the height limits specified in this chapter: a. A single decorative architectural element, such as a turret, tower, or clock tower, may extend a maximum of five feet above the specified height limit if it is designed as an integral architectural feature of the roof and/or facade of the building. The decorative architectural element shall not cover more than five percent of the roof area of the building. b. Roof or deck railings may extend a maximum of 42 inches above the specified height limit within any building step-back required under subsection (C)(2) of this section; provided, that the railing is constructed so that it has the appearance of being transparent. An example meeting this condition would be a railing that is comprised of glass panels. D. Off-Street Parking and Access Requirements. The parking regulations included here apply specifically within the BD zone. Whenever there are conflicts between the requirements of this chapter and the provisions contained in Chapter 17.50 ECDC, Off-Street Parking Regulations, the provisions of this chapter shall apply. 1. Within the BD1 zone, no new curb cuts are permitted along 5th Avenue or Main Street. 2. No parking is required for any commercial floor area of permitted uses located within the BD1, BD2, BD4, and BD5 zones. 3. No parking is required for any floor area in any building with a total building footprint of less than 4,800 square feet. E. Open Space Requirements. 1. For buildings on lots larger than 12,000 square feet or having an overall building width of more than 120 feet (as measured parallel to the street lot line), at least five percent of the lot area shall be devoted to open space. Open space shall not be required for additions to existing buildings that do not increase the building footprint by more than 10 percent. Open space shall be provided adjacent to the street front (street lot line). Such open space may be provided as any combination of: a. Outdoor dining or seating areas (including outdoor seating or waiting areas for restaurants or food service establishments); b. Public plaza or sidewalk that is accessible to the public; c. Landscaping which includes a seating area that is accessible to the public. 2. Required open space shall be open to the air and not located under a building story. Packet Page 47 of 202 14 3. In overall dimension, the width of required open space shall not be less than 75 percent of the depth of the open space, measured relative to the street (i.e., width is measured parallel to the street lot line, while depth is measured perpendicular to the street lot line). F. Historic Buildings. The exceptions contained in this section apply only to buildings listed on the Edmonds register of historic buildings. 1. If a certificate of appropriateness is issued by the Edmonds historic preservation commission under the provisions of Chapter 20.45 ECDC for the proposed project, the staff may modify or waive any of the requirements listed below that would otherwise apply to the expansion, remodeling, or restoration of the building. The decision of staff shall be processed as a Type II development project permit application (see Chapter 20.01 ECDC). a. Building step-backs required under subsection (C)(2) of this section. b. Open space required under subsection (E) of this section. 2. No off-street parking is required for any permitted uses located within a building listed on the Edmonds register of historic buildings. Note that additional parking exceptions involving building expansion, remodeling or restoration may also apply, as detailed in ECDC 17.50.070(C). Packet Page 48 of 202 15 3. Within the BD5 zone, if a building listed on the Edmonds register of historic buildings is retained on-site, no off-street parking is required for any additional buildings or uses located on the same property. To obtain this benefit, an easement in a form acceptable to the city shall be recorded with Snohomish County protecting the exterior of the historic building and ensuring that the historic building is maintained in its historic form and appearance so long as the additional building(s) obtaining the parking benefit exist on the property. The easement shall continue even if the property is subsequently subdivided or any interest in the property is sold. G. Density. There is no maximum density for permitted multiple dwelling units. H. Screening. The required setback from R-zoned property shall be landscaped with trees and ground cover and permanently maintained by the owner of the BD lot. A six-foot minimum height fence, wall or solid hedge shall be provided at some point in the setback, except for that portion of the BD zone that is in residential use. I. Signs, Parking and Design Review. See Chapters 17.50, 20.10, and 20.60 ECDC. Sign standards shall be the same as those that apply within the BC zone. J. Satellite Television Antennas. In accordance with the limitations established by the Federal Communications Commission, satellite television antennas greater than two meters in diameter shall be reviewed in accordance with the provisions of ECDC 16.20.050. [Ord. 3736 § 10, 2009; Ord. 3700 § 1, 2008]. 16.43.035 Design standards – BD1 zone. Design standards for the BD1 zone are contained in Chapter 22.43 ECDC. [Ord. 3700 § 1, 2008]. 16.43.040 Operating restrictions. A. Enclosed Building. All uses shall be carried on entirely within a completely enclosed building, except: 1. Public uses such as utilities and parks; 2. Off-street parking and loading areas, and commercial parking lots; 3. Drive-in businesses; 4. Plant nurseries; 5. Seasonal farmers’ markets; 6. Limited outdoor display of merchandise meeting the criteria of Chapter 17.65 ECDC; 7. Bistro and outdoor dining meeting the criteria of ECDC 17.70.040; 8. Outdoor dining meeting the criteria of Chapter 17.75 ECDC. B. Nuisances. All uses shall comply with Chapter 17.60 ECDC, Performance Standards. [Ord. 3700 § 1, 2008]. Packet Page 49 of 202 16 16.43.050 Development agreements. A. A development in a BD zone may be approved using the process and criteria described for development agreements in ECDC 20.08. B. What can be approved. A development agreement for a development in a BD zone may vary any of the site development standards contained in ECDC 16.43.030 or 16.43.040 subject to the following limitation: 1. Building height limits may be increased to a maximum height of 35. C. Criteria for approval. In addition to the criteria described in ECDC 20.08, a development approved pursuant to a development agreement must be designed to attain at least a LEED Silver or equivalent level of green building certification. The development must also satisfy at least two of the following criteria: 1. The development is designed to attain at least a LEED Gold or equivalent level of green building certification; 2. The development incorporates one or more of the following uses designed to further the city’s economic development goals: a. a hotel; b. a post office; c. a farmers market; d. studio work space, housing or live-work space for artists. 3. The development includes enhanced public space and amenities. Without limiting the scope of enhanced public space and amenities, examples include such features as public restrooms, additional building setbacks which provide expanded public sidewalks or gathering space and/or combined with eating or food retail spaces which include open areas adjacent to the sidewalk. Art features visible to the public shall also be incorporated into building and/or site design. Packet Page 50 of 202 Summary of Planning Board Recommended Changes to BD Zones  1. Designated street front and commercial depth requirements. Commercial depth  requirements are changed to a consistent 45‐foot depth and are tied to a new expanded map  covering all BD zones. This replaces the 30‐foot requirement in the BD1 zone and the 60‐foot  requirement elsewhere. The map of ‘designated street fronts’ is expanded in the code to include  all BD zones, not just the BD1 zone. This helps clarify where the primary pedestrian areas are  throughout the downtown BD zones.  2. Uses in the BD1 (Retail Core) zone. Uses are restricted in the BD1 zone with revisions to the  Table in ECDC 16.43.020. While retail, restaurants and service businesses are allowed, office or  professional office uses must be located outside the 45‐foot 'designated street front.' In  addition, drive‐in or drive‐through businesses are prohibited in the BD1 zone. Existing non‐ conforming uses would be dealt with via the nonconforming rules in the zoning code... i.e. they  would be able to continue as that type of use so long as they are occupied. In addition, other  kinds of office uses could locate behind the designated street front (i.e. behind the first 45 feet)  or on upper floors of a building. However, going forward, the emphasis would be on pedestrian‐ oriented retail, restaurant and service uses along commercial street fronts within the BD1 zone.  3. Step‐back requirements. Step‐backs are no longer required in downtown buildings (currently,  they are not required in the BD1 zone, while a 15‐foot step‐back is required above 25 feet in  other BD zones). The Planning Board concluded that the current step‐backs built into the code  end up removing too much of the upper portion of a building to be feasible to enforce, and the  design of buildings is determined more by overall height and design standards.  4. Development Agreements. Development agreements are authorized in the proposed  amendments (see ECDC 16.43.030.A and 16.43.050). The language in ECDC 16.43.050 includes  sample criteria and authorizes what can be modified by a development agreement. Approval  hinges on meeting at least two of three criteria, generally including (1) attaining at least a LEED  Gold or equivalent level of green building certification; (2) the development incorporates one or  more uses designed to further the city’s economic development goals (such as a hotel, post  office, farmers market, or space for artists); (3) the development includes enhanced public  space and amenities. Development agreements are authorized as an alternative development  approval process, requiring public hearings at both the Planning Board and City Council, with  final approval by the Council. Notwithstanding the other criteria, a development agreement  cannot increase the height of a building to be more than 35 feet.        2011.07.15  Packet Page 51 of 202 APPROVED JUNE 22nd CITY OF EDMONDS PLANNING BOARD MINUTES June 8, 2011 Chair Lovell called the meeting of the Edmonds Planning Board to order at 7:00 p.m. in the Council Chambers, Public Safety Complex, 250 – 5th Avenue North. BOARD MEMBERS PRESENT Philip Lovell, Chair Kevin Clarke Todd Cloutier Bill Ellis Kristiana Johnson Valerie Stewart Neil Tibbott BOARD MEMBERS ABSENT John Reed, Vice Chair (excused) STAFF PRESENT Rob Chave, Planning Division Manager Karin Noyes, Recorder READING/APPROVAL OF MINUTES BOARD MEMBER CLARKE MOVED THAT THE MINUTES OF MAY 25, 2011 BE APPROVED AS AMENDED. BOARD MEMBER TIBBOTT SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. ANNOUNCEMENT OF AGENDA No changes were made to the agenda. AUDIENCE COMMENTS No one in the audience expressed a desire to address the Board during this portion of the meeting. PUBLIC HEARING ON POTENTIAL AMENDMENTS TO DOWNTOWN BUSINESS DISTRICT (BD) ZONES (FILE NUMBER AMD20110003) Mr. Chave reviewed each of the proposed amendments as follows: Designated Street Front and Commercial Depth Requirements: Mr. Chave referred the Board to the proposed map of Designated Street Fronts for BD Zones (Map 16.43-1), which has been expanded to include all BD zones, not just the BD1 zone. The purpose of the map is to clarify where the primary pedestrian areas and commercial uses are intended to be oriented within the BD Zones. He explained that ground floor of properties along designated street fronts would be required to meet the commercial height and depth requirements. At this time, the commercial height requirement for the ground floor space of properties along the designated street fronts is 12 feet. The Packet Page 52 of 202 APPROVED Planning Board Minutes June 8, 2011 Page 2 proposed language identifies a consistent commercial depth requirement of 45 feet, which replaces the 30-foot requirement in the BD1 zone and the 60-foot requirement elsewhere in the BD zones. Staff believes the 30-foot standard is too small to ensure adequate commercial space. Conversely, it makes no sense to require a greater standard of 60 feet outside the retail core (BD1). He reminded the Board that multi-family residential and professional offices would be allowed to locate on the portions of ground floor space located outside of the designated street front areas and on the upper floors of all buildings in the BD Zones. Mr. Chave said the Board is specifically seeking feedback from the public about the proposed amendment to the commercial depth requirement, as well as the proposed Designated Street Front Map. He advised that staff measured a large number of commercial spaces in the BD zones in 2005 and 2006, with particular focus on the BD1 zone. They found that the vast majority of the commercial spaces had a depth of at least 60 feet. Therefore, they believe that a 45-foot commercial depth requirement would be reasonable to ensure an adequate amount of ground floor commercial space. Again, he emphasized that this requirement would only apply to properties located along designated street fronts. Step-Back Requirement: Mr. Chave explained that, currently, there is no step-back requirement in the BD1 zone, but there is a 15-foot step-back requirement in all other BD zones. In order to increase the height of a building from 25 to 30 feet, a 15-foot step-back is required for the portion of the structure above 25 feet. This requirement results in a significant loss in the amount of developable area and ends up prohibiting buildings from actually being constructed within the established downtown height limits. He said the proposed language provided for the hearing identifies a reduced step-back requirement from 15 feet to 5 feet. However, the Board is also considering the option for removing the step-back requirement entirely from all BD zones. The logic is that if the 30-foot height limit is adequate in the BD1 zone, it should be adequate for all BD zones. In addition, the step-back requirement does not really add any additional protection that is not already addressed by the existing Design Guidelines for the BD zones. He said the Board is seeking feedback on whether or not the step-back requirement should be reduced or eliminated. Uses in the BD1 (Retail Core) Zone: Mr. Chave explained that the area one to two blocks radiating out from the fountain is known as the downtown retail core or BD1 zone. Members of the Planning Board surveyed the existing uses in this area and found that it is predominately retail and restaurant uses, with a fair amount of service uses that are generally compatible with retail uses. However, there are some uses that are not compatible, such as medical offices and/or other types of offices that do not have walk-in customers. These uses tend to want to wall off their businesses from the street front, which discourages pedestrian activity. If more of these types of uses are located in the retail core, they could undermine the viability of the existing retail uses. He particularly noted that medical uses are required to provide privacy to their patients. Because they have not been allowed to close off their front windows, they have used privacy screens inside, which have had the same affect. Mr. Chave said the Board has discussed the idea of prohibiting certain types of uses that are incompatible with the retail core. As per the proposed amendment in Table 16.43.020, retail, restaurant and service businesses would be allowed, but office and/or professional office uses would only be located outside the 45-foot designated street front. Another option being considered by the Board would be even more restrictive to prohibit office and service uses in the designated street front areas in the BD zone. Only retail and restaurant uses would be allowed. He emphasized that the BD1 zone occupies only a small portion of the downtown, and the use restrictions would only apply to the designated street front areas. Office uses would still be allowed elsewhere in the building behind the front retail-oriented uses or on the upper floors of the building. He noted that if the proposed language is adopted, existing nonconforming uses would be dealt with via the nonconforming rules in the zoning code. They would be allowed to continue as the same type of use so long as they remain occupied. Development Agreements: Mr. Chave explained that a development agreement is similar to the “contract rezone” concept, which is no longer used by the City. As proposed, the development agreement concept would allow flexibility for a developer to propose modifications to the development standards in exchange for providing a public benefit. He referred to the proposed code language in Packet Page 53 of 202 APPROVED Planning Board Minutes June 8, 2011 Page 3 Section 16.43.050, which includes sample criteria and authorizes what can be modified by a development agreement. The Board is seeking specific feedback about whether the criterion is appropriate and whether development agreements should be available in all BD zones. They would also like feedback about whether specific conditions should be attached to development agreements, as well as what development standards could be varied, and to what extent. Mr. Chave said that, as proposed in Section A, development agreements would be reviewed by the Planning Board as part of a public hearing process. The Board would forward a recommendation to the City Council, and the City Council would conduct another public hearing before making a final decision. The Board’s recommendation and the City Council’s final decision would be based on whether or not a proposal is consistent with the City’s economic development and Comprehensive Plan goals and the downtown Design Guidelines. Mr. Chave reviewed that Section B outlines what can be approved as part of a development agreement. The language includes two options. One would allow a development agreement to vary any of the site development standards contained in ECDC 16.43.030 or 16.43.040. An alternative would be to allow a development agreement to vary any of the site development standards contained in ECDC 16.43.030 or 16.43.040 except building height limits would only be allowed to increase to 35 feet or three stories, whichever is greater. He recalled that the Board specifically discussed the concept of using “stories” to address height. He explained that the topography in downtown Edmonds makes this approach difficult. Because of topographical changes, development on a single lot could accommodate up to three stories on one side, but four on another. He said the Board is particularly interested in hearing public feedback regarding this concept. Mr. Chave referred to the criteria for approval of development agreements, which is outlined in the proposed language for Item C. As proposed, in addition to attaining at least a LEED Silver or equivalent level of green building certification, a development would be required to meet at least two of the following three criteria: 1. The development is designed to attain at least a LEED Gold or equivalent level of green building certification. 2. The development incorporates one or more of the follow uses designed to further the City’s economic development goals: a hotel, a post office, a farmer’s market, and/or studio work space, housing or live-work space for artists. 3. The development includes enhanced public space and amenities. Mr. Chave observed that, typically, sidewalks in the downtown are narrow and buildings are constructed right to the sidewalk. A developer could propose an expanded sidewalk or plaza area to enhance the pedestrian space, which would meet one of the criteria for a development agreement. He reminded the Board that a development agreement must be consistent with the goals and policies in the Comprehensive Plan and the downtown Design Guidelines. Chair Lovell referred to the proposed Designated Street Front Map (Map 16.43-1) and recalled the Board previously discussed that a portion of the street front on 5th Avenue between Howell Way and Erben Drive has a steep topography and is not really an ideal location for retail uses. It was suggested that this area should not be designated as commercial street front. Mr. Chave recalled this was discussed by the Board and the Citizens Economic Development Commission (CEDC) at a joint meeting. He said staff recommends that the designated street front extend all the way up 5th Avenue to the end of the BD3 zone. Otherwise, the area would be made available for other types of uses that are not compatible with retail and/or commercial uses. Chair Lovell pointed out that Footnote 3 on Page 5 should be amended to identify a 45-foot commercial depth requirement in rather than a 60-foot requirement. Board Member Ellis requested further information about how nonconforming uses would be addressed. While he understands the uses would be allowed to continue for a time after the amendments are approved, he asked when they would lose their nonconforming status. Board Member Johnson answered that the businesses would be allowed to continue as nonconforming uses as defined in ECDC 17.40. However, they would not be allowed to expand in any way, including the number of employees, equipment and/or hours of operation, except as provided in ECDC 17.40.050. If a nonconforming uses ceases for a period of six continuous months, any later use of the property occupied by the former nonconforming use would be required to conform to the zoning ordinance. In laymen’s terms, the property could be rented to another similar Packet Page 54 of 202 APPROVED Planning Board Minutes June 8, 2011 Page 4 business or to a permitted use. However, if the building is vacant for six months, it may only be used for conforming uses in the code. Board Member Clarke suggested that the Designated Street Front Map does not accurately represent how the City is legally platted into lots. Rather, it represents ownership. Mr. Chave explained that the map is divided into tax parcels, which are different than legal lots. In some cases, multiple lots are combined into a single tax parcel. As an example, Board Member Clarke specifically referred to the properties on the south side of Main Street between 2nd and 3rd Avenues South. The property to the west of the alley is divided into three lots, and the same size of property to the east of the alley is identified as a single lot because it is under the same ownership. Board Member Clarke pointed out that requiring a 15-foot step-back on narrow lots for portions of a building above 25 feet makes development challenging, if not impossible. The stepped-back portion of the buildings would be nonfunctional. Mr. Chave explained that the step-back requirement is particularly onerous for properties that have two street fronts (the main street front and the alley). These buildings are required to step back 15 feet on each side. Board Member Clarke referred to the property located just west of 3rd Avenue South at the northwest corner of the alley and questioned if it is legally possible to redevelop just one of the lots based on the current step-back requirement. Mr. Chave agreed that redeveloping just one of the lots would be very challenging. Doug Spee, Woodway, said he has an office on Bell Street. He expressed his belief that the proposed code amendments are well written and would benefit all property owners in the BD zones. They do not favor any particular land owner. He said that while the step-back concept works well for high-rise development in downtown Seattle, the Board should keep in mind that development in downtown Edmonds is limited to three stories. Asking a developer to step back the top floor can kill the design and make a project unfeasible. He expressed his belief that a step-back requirement is the wrong choice to prequalify a developer for the additional 5 feet in height. Another option would be to allow the additional 5 feet in height if a building is modulated. He pointed out that the Architectural Design Board has the ability to effectively control whether a proposed building provides enough modulation to warrant the additional 5 feet in height. A step back should not be the only way a developer can obtain the additional height. Mr. Spee referred to the proposed development agreement language (ECDC 16.43.050) and noted that the alternative language for Item B could be interpreted to allow building heights much greater than 35 feet if a developer proposes a 3- story building with tall ceiling heights on each floor. He suggested the language be clarified or that the reference to the number of stories be eliminated altogether. Ron Wambolt, Edmonds, thanked the Board for the time and effort they have spent to work through the proposed amendments. He said he hopes that when they are presented to the City Council, they will be in a good frame of mind to support the Board’s recommendation. He said he supports most of the changes as proposed. He specifically said he believes development agreements would stimulate economic development in downtown Edmonds. He noted there has been no new development in downtown Edmonds since the BD zoning was implemented in early 2006. While the economy is partially to blame, he believes the other cause is the rigid BD development standards. Currently, the only flexibility allowed in the BD zones is through a variance, which requires a developer to meet six criteria. While the variance concept is well intended, it generally curbs the granting of any variance. He said he believes the development agreement provision would open new opportunities for controlled flexibility. Developers would have more flexibility, but the flexibility would be controlled by the City Council. It sets up the opportunity for a win-win situation where the developer has to give something in order to get something in return. He said he hopes the Board can reach a unanimous decision and forward their recommendation to the City Council as soon as possible. Stephen Clifton, Community Services/Economic Development Director, referred to the Planning Board’s minutes of April 13th, which incorrectly quoted him as stating that “the step-back requirement should be applied in all BD zones.” His intent was to suggest that he did not see the logic of applying a 15-foot step back in any of the BD zones. Karen Wiggens, Edmonds, said she supports the Board’s proposal to prohibit office uses in the BD1 zone. It is important for the retail area to be pedestrian friendly. However, she is not sure she supports the idea of prohibiting service uses, as well. Many people who visit the nail and hair salons walk to their destinations. She said she also supports the proposal to change the commercial depth requirement to 45 feet for all BD zones and to eliminate the step-back requirement. She explained that she owns a building on 2nd Avenue South and James Street, and they are currently negotiating a 10-year lease Packet Page 55 of 202 APPROVED Planning Board Minutes June 8, 2011 Page 5 with Landau Associates, which will be good for her and for the City. Part of the reason she can negotiate the new lease is because she can offer additional space on the third floor, which can be expanded on the east side of the building. There is no reason for a 15-foot step back on her building. If she was not allowed to expand her building to the street front, the City would lose a good business, and she is not the only property owner in this type of situation. She said that while she supports the development agreement concept, she cautioned that the proposed language appears to address one specific property, which can be a dangerous approach. THE PUBLIC PORTION OF THE HEARING WAS CLOSED. Chair Lovell requested clarification of Mr. Spee’s comment related to the proposed language in Alternative B in ECDC 16.43.050 (height versus stories). He said he does not interpret the language to allow a 3-story building that is greater than 35 feet in height. Mr. Spee said he supports the concept of limiting building height to 35 feet. However, his interpretation of Alternative B is that a 3-story building could actually be much greater than 35 feet if each of the floors had a 16-foot ceiling height. He said he does not believe the language, as currently drafted, defines the maximum building height allowed. Board Member Clarke observed that Ms. Spee is a successful developer in other jurisdictions in the Puget Sound area. He asked him explain how a developer could construct a 4-story building when the height is limited to 35 feet, particularly given the height required to provide a 12-foot ground floor commercial space, as well as space to locate the mechanical equipment. Mr. Spee answered that if a lot is sloped, it may be possible to construct four stories on one side. He said that if the proposed Designated Street Front Map is approved as presented, his property would qualify for four stories because a portion of the development would be outside the designated street front area. Therefore, he would not be required to provide 12-foot ceiling heights for the ground floor space. He briefly explained how a 4-story development could be accomplished on his particular lot. Board Member Clarke reminded the Board that the objective of development agreements is to enhance flexibility. The development standards do not take lot size and topography into consideration, and applying a one-size-fits-all approach does not allow flexibility for developers to explore other options that would enhance overall development without creating a monstrous development that the community does not want. He recalled that the purpose of the height limit is to avoid massive buildings. Mr. Spee pointed out that a 30-foot high building could not be considered large. He suggested that one aspect that is missing from the conversation is that topography creates a stadium setting as you approach the downtown. The one-size-fits-all approach does not acknowledge that a slightly taller building on 4th Avenue South and Main Street would not look different from uphill. Development agreements would offer flexibility for the City to allow slightly taller buildings that do not block view from uphill. They also allow developers an opportunity to try and sell something that makes better sense to the public and the City Council. He said he has spent several months trying to offer ideas for how his development could provide more benefits to the community, but the current code language does not allow flexibility to implement any of the ideas. Board Member Clarke pointed out that Mr. Spee also owns property in Redmond near their town center, which has potential for redevelopment. Mr. Spee said he purchased the property in July of 2008 and the permits to construct an 85-foot tall building were obtained in December of 2010. He said that while Redmond’s development standards are different, they are not necessarily any better. However, they do not have a building height requirement for their town center zone. The Board reviewed each of the proposed amendments and took action as follows: Uses in the BD1 (Retail Core) Zone: CHAIR LOVELL MOVED THAT THE BOARD RECOMMEND APPROVAL OF THE REVISED TABLE IN ECDC 16.43.020 AS PROPOSED BY STAFF. BOARD MEMBER CLOUTIER SECONDED THE MOTION. Mr. Chave referred to the proposed table and noted that the only term currently defined in the code is “office,” which means “a building or separate defined space within a building used for a business which does not include on-premises sales of goods or commodities.” He noted that this definition is not particularly helpful, and that is why staff provided more descriptive language for office and service uses. He advised that the Board would review all the use classifications after the Packet Page 56 of 202 APPROVED Planning Board Minutes June 8, 2011 Page 6 University of Washington Team has worked out their proposal for form-based zoning for the Westgate and Five Corners commercial areas. He referred to the handout that matches the 1987 Standard Industrial Classification (SIC) Codes to the 1997 North American Industry Classification System (NAICS), which identifies very different kinds of service categories. He recalled the Board has talked about allowing personal service uses in the BD1 zone. He summarized that while they must deal with use definitions at some point in the future, the proposed amendment is workable because it includes terms that are used throughout the Development Code. Board Member Ellis recalled the Board previously discussed the option of prohibiting both office and service uses in the BD1 zone. However, the motion currently on the floor would only restrict office uses from being located in the designated street front areas within the BD1 zone. Board Member Stewart reviewed the updated results of the survey she and Board Member Johnson conducted to identify the current uses in the BD1 zone. They found that 35% of the designated street fronts were retail uses, 5% were art, and 23% were restaurant and food services. That means a total of 63% of the uses were retail and/or food related. In addition, 25% of the space was occupied by beauty and wellness uses, finance, insurance and real estate uses, and professional offices. Other uses occupied 4% of the space, and 8% of the space was vacant. Mr. Chave observed that professional offices occupy only a small percentage of the designated street front space in the BD1 zone. However, adopting the proposed language would eliminate the possibility of more of these uses locating in these critical retail areas. Board Member Cloutier recalled the Board’s previous discussion about what options a land owner would have if they are unable to rent their space for a retail use. If a space cannot be rented within a 6-month time period, he suggested it would be better to allow the space to be rented for a professional office use rather than remain vacant. He questioned how this need could be addressed. Mr. Chave said the proposed amendment would offer no option for other types of uses, and a development agreement would not be allowed to modify the allowed uses, either. Board Member Stewart suggested the purpose of the proposed amendment is to serve a greater City need. Landowners have the option of adjusting their rent and/or terms to attract retail tenants. Mr. Chave recalled an experience shared earlier by Mr. Clifton in which he encouraged a property owner to think more carefully about the types of businesses he/she was trying to recruit. The property owner assumed the space was more suitable for office use, but he was able to convince him/her that a retail food business would be a better choice. The property owner was able to successfully recruit this type of use. Board Member Stewart emphasized that getting more retail uses in the BD1 zone will be positive for the landowners, too. Board Member Johnson pointed out that changing the uses allowed in the BD1 zone would not require a successful office use to terminate now. However, she felt the proposed amendment would be appropriate if the City’s intent is to have retail uses in the BD1 zone. She agreed that service uses such as nail and hair salons could be part of the retail mix. She would even support allowing all service uses, but medical and other professional office uses should be prohibited. Board Member Cloutier agreed the City’s goal is to have retail uses in the BD1 zone. However, he cautioned against limiting the property owners’ ability to rent their space too much. There should be some provision that allows nonconforming uses if that is the only type of use interested in the space. Allowing a nonconforming use would be better than an empty store front. Mr. Chave pointed out that the hardship to property owners would be mitigated by the fact that the use restrictions would only apply to the portions of buildings located within the designated street front. The limited use would apply to just a very small portion of the downtown area, and he would advocate holding firm on the areas that matter (BD1 zone). Board Member Clarke said it appears that the vacant properties in the BD1 zone are designed for retail rather than professional office uses. Mr. Chave added that much of the vacant space is in space that has never been occupied but was constructed for retail uses. Board Member Clarke said he cannot foresee a situation in which the proposed amendment would place a hardship on a property owner. He expressed his belief that the proposed amendment represents the best interest of the public and provides a fair balance between the needs of the landowners and the current economic conditions. Board Member Johnson pointed out that, as proposed, drive-through businesses would no longer be allowed in the BD1 zone. The Board has generally agreed with this approach. However, as she reviewed the table of permitted uses, her attention was drawn to hotel and motel uses, both of which are permitted primary uses in the BD1 zone. She explained that a Packet Page 57 of 202 APPROVED Planning Board Minutes June 8, 2011 Page 7 motel is designed for auto travelers, and a hotel is defined in Chapter 21 as containing five or more separately-occupied rooms. A boarding house is a use that contains not more than four rooms for lodgers and boarders. She expressed her belief that hotel and boarding house uses seem to be more consistent for the BD1 zone, but perhaps motels should be excluded. Motels require an additional driveway access, which is similar to a drive-through business. If one is permitted and the other is not, it appears to be contrary to the desired pedestrian environment in the BD1 zone. Mr. Chave acknowledged that, at one time, the terms “hotel” and “motel” were defined differently, but now there is much less distinction. He reminded the Board that the BD1 development standards prohibit additional curb cuts, which would address issues related to access. Board Member Johnson pointed out that the definitions she provided came directly from the existing ECDC. Mr. Chave agreed but said the definitions are old and need to be reviewed and updated at some point in the near future. Board Member Clarke explained that the term “drive-through” references the fact that a user is maintaining their auto in the rendering of the service such as a coffee stand, a fast-food restaurant, etc. People are served while they remain in their cars. On the other hand, people who visit motels are required to park their cars to access their rooms. In the transient lodging world, which covers hotels, motels, etc., there is no such thing as a drive-through motel. Therefore, he suggested that motels are unrelated to drive-through uses. He summarized his belief that the City should not prohibit transient lodging facilities in the BD1 zone. THE MOTION CARRIED UNANIMOUSLY. Designated Street Front and Commercial Depth Requirements: BOARD MEMBER CLOUTIER MOVED THAT THE BOARD RECOMMEND APPROVAL OF THE AMENDMENT TO ECDC 16.43.030 TO CHANGE THE COMMERCIAL DEPTH REQUIREMENT TO 45 FEET IN ALL BD ZONES AS PROPOSED BY STAFF WITH THE CORRECTION TO FOOTNOTE 3 (CHANGE 60 FEET TO 45 FEET). HE FURTHER MOVED THE BOARD RECOMMEND APPROVAL OF THE DESIGNATED STREET FRONT FOR BD ZONES MAP AS PROPOSED BY STAFF. BOARD MEMBER STEWART SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Step-Back Requirements: CHAIR LOVELL MOVED THAT THE BOARD RECOMMEND THAT THE STEP-BACK REQUIREMENT BE ELIMINATED IN ALL BD ZONES. BOARD MEMBER JOHNSON SECONDED THE MOTION. Chair Lovell said the logic behind his motion is that the Comprehensive Plan and Design Guidelines provide that building design shall include façade articulation and/or modulation. Using changes in textures, materials and articulation can achieve the same aesthetic result as requiring a step back. He expressed his belief that even a 5-foot step back would be too much when multiplied by the entire width of the lot. Board Member Clarke observed that there is no step-back requirement in the BD1 zone. Similar to how the commercial depth requirement was changed to be consistent for all BD zones, he said he would support a consistent step-back requirement. He said the existing architecture in the BD zones reflects the uniformity of no step-back requirement since no new development has occurred since the step-back requirement was implemented. As examples, he noted the Windermere Building, City Hall, the Harbor Building, and the condominiums built in downtown. He concluded that the step-back provision has not proven to be a valuable contribution to the building code. For uniformity and to be consistent with how the City is currently developed, he recommended the step-back requirement be eliminated. Board Member Ellis said he supports the motion to eliminate the step-back requirement for the same reasons that were stated by Board Member Clarke and Chair Lovell. He said he does not see why they should have a different step-back requirement for any of the BD zones. The current requirement is too blunt an instrument to accomplish its goal. Chair Lovell referred to written comments submitted by Vice Chair Reed, which state, “I think the step-back change is good, though upper floor step-backs are a good design feature that I would hope is still used. Otherwise, we could end up with shoe boxes for the sake of maximizing square footage.” Packet Page 58 of 202 APPROVED Planning Board Minutes June 8, 2011 Page 8 THE MOTION CARRIED UNANIMOUSLY. Packet Page 59 of 202 APPROVED Planning Board Minutes June 8, 2011 Page 9 Development Agreements: BOARD MEMBER CLOUTIER MOVED THAT THE BOARD ADOPT THE PROPOSED LANGUAGE FOR ECDC 16.43.050 AS PRESENTED BY STAFF, USING ALTERNATIVE B. CHAIR LOVELL SECONDED THE MOTION. Board Member Cloutier referred to Mr. Spee’s earlier concern that using the term “story” could result in building that are significantly taller than 35 feet if a developer chooses to construct three stories that are each 16 feet tall. He reminded the Board that the additional height would only be allowed via an approved development agreement, which would be reviewed by both the Planning Board and the City Council. If the proposed height of a development is unreasonable, the City would not be obligated to approve the development agreement. A developer would have to make a strong case to support why each story would have to be so tall, and each request would be weighed against the Downtown Design Guidelines and the Comprehensive Plan policies. Board Member Cloutier recalled that one Board Member expressed concern that if all provisions in ECDC 16.43.030 and 16.43.040 can be altered with the exception of height, these two code sections would be meaningless. He reminded the Board that any code diversion would have to be approved by the City Council as part of a development agreement. Mr. Chave added that a developer would have to make a case to support his request to modify a development standard. Board Member Cloutier said a Board Member also raised the question of what would happen if a developer chooses not to meet one of the requirements of ECDC 16.43.030 or 16.43.040 after a development agreement has been approved. Mr. Chave answered that the developer would be required to either amend the development agreement or request an entirely new development agreement, both of which would require a public process and final approval by the City Council. These inconsistencies should be caught during the development permit review, and no development permit would be issued for a project that does not meet all of the code requirements as outlined in the development agreement. While he actually recommended including the reference to “stories” in Alternative B, Board Member Clarke questioned if it is needed if the goal is to create flexibility. He asked if the 35-foot maximum height limit would provide enough safeguard that someone would not be able to build a taller structure. If so, then reference to “stories” is irrelevant. Mr. Chave agreed and noted that height has traditionally been regulated based on a specific height and not stories. The language related to stories was added at the request of the Board. It is not really necessary. Board Member Clarke said it is possible for a development that is 35-feet high to include a taller first floor to accommodate the mechanical equipment and a taller third story to provide a greater ceiling height for residential units. This would allow for development that is architecturally unique and different than a standard box. He noted that other municipalities are allowing flexibility in their codes for this type of development. He said he would support the motion, but he would like to amend it to delete the reference to “three stories.” Board Member Ellis suggested it would make more sense to change Alternative B to read, “A development agreement for a development in a BD zone may vary any of the site development standards contained in ECDC 16.43.030 or 16.43.040 except building height may only be increased to 35 feet.” Board Member Chave agreed that would be appropriate and would not alter the intent of the proposed language. BOARD MEMBER CLOUTIER MOVED THAT THE MOTION BE AMENDED TO DELETE THE WORDS “OR THREE STORIES, WHICHEVER IS GREATER” FROM ITEM B.1. BOARD MEMBER JOHNSON SECONDED THE MOTION. Board Member Clarke said he appreciates that the City Council takes the time to read the Board’s minutes because they have spent a lot of time on this issue. That is one of the reasons he has taken the time to have the discussion about building heights versus stories and the combination of the two. This discussion helps to lay the foundation so the City Council can see the complexity of the problem they face in the BD zones and offer a solution that meets the Design Guidelines and Comprehensive Plan Policies to encourage positive economic development and suitability to the community in long-term investments with the anticipation of providing economic benefits for all stakeholders in the community. Board Member Clarke said it is important for the City Council and the public to have a clear understanding of the concept of highest and best use of the development of real estate. He explained that there are four criteria for evaluating the highest and best use of a piece of property: Packet Page 60 of 202 APPROVED Planning Board Minutes June 8, 2011 Page 10 1. Potential Development. The potential development must be physically possible based on current construction standards and standards associated with the site. 2. Legally Permissible. This falls directly under the zoning code and development standards to create the elasticity on legally permissibility. Flexibility in the code enables the highest and best use to expand and adapt to different market conditions, which is critical in the development arena. 3. Financially Feasible. This is a key concept for the community to consider. For example, if the cost of land and the cost of construction are both high, these costs must be covered by the economic feasibility of the proposed project. This is one reason why the step-back requirement is onerous. It reduces a developer’s opportunity to spread the financial viability over a larger footprint. The Board has enhanced the concept of highest and best use by recommending that the step-back requirement be eliminated and by establishing a uniform commercial depth requirement of 45 feet. Both of these amendments allow for more flexibility for the types of land uses that can be put in the BD zones. It also enhances the arena for financial feasibility. 4. Maximum Productivity. Maximum productivity is based on opportunity costs. If a developer has two alternatives, they must determine which one produces the maximum productivity of the asset. The zoning code helps the developer be able to choose the best of all the land uses based on economics at the time of development. Board Member Clarke summarized that if all four criteria can be met, there is a high probability that the project will be sustainable over the long term and improve the return to all stakeholders through increased tax revenues and enhanced use of the property by the community. He said the Board has worked hard to create an environment that meets and exceeds the goals of the Comprehensive Plan with respect to the economic sustainability of the community. Developers will be able to speak to all four points with more flexibility, and there will be more opportunities for return to the community. Chair Lovell referred to Vice Chair Reed’s written concern about changes that occur after a development agreement has been approved. Mr. Chave clarified that the staff cannot unilaterally change a development agreement. Changes would have to go back to the City Council for approval. Board Member Stewart pointed out that the proposed amendment incentivizes the City’s goal of being sustainable by requiring Silver and/or Gold LEED or equivalent for all development agreements. It is also important to consider the concept of adaptive reuse so that the uses of buildings can be altered as the market changes without requiring substantial redevelopment. In addition, new construction should use local materials and other sustainable resources, be energy efficient, maximize day lighting to reduce electricity requirements, and safeguard the indoor environmental quality by eliminating the use of toxic materials. She summarized that return on investment is not just about construction costs, it also includes reducing operating costs over the life of a building. These measures will help improve the economic and social sustainability of the City. Board Member Ellis questioned how the Board came up with the four uses outlined in Item C.2. Mr. Chave said these uses were identified in discussions with the Planning Board and CEDC as priorities for promoting tourism in the downtown. Board Member Ellis asked if this list is intended to be exclusive of the things that are desirable or if additional uses could be added. Mr. Chave agreed that the four items may not be the only important and desirable uses, but they represent those that have been identified thus far. Board Member Ellis questioned if specifically identifying these uses would preclude other desirable uses in the future. Mr. Chave pointed out that the language could be amended in the future if more uses are identified. Board Member Ellis suggested that a better option would be to identify the four uses as potential examples, but not all inclusive. Mr. Chave cautioned against leaving the language so extremely open ended. Board Member Clarke suggested another option would be to add “or characteristics” after “uses,” and then include a provision that allows the Planning Board to make recommendations to the City Council for uses or other characteristics that may be considered in the future. This would allow the document to be more flexible rather than restricted to just those four uses. Mr. Chave pointed out that this process would really be no less time consuming than a development code amendment to add another use. Board Member Clarke said it is important for the City Council to see that this concept was considered by the Board and their intent is that it not be limited to the four uses identified in Item C.2. Neither is the language intended to apply to the needs of Packet Page 61 of 202 APPROVED Planning Board Minutes June 8, 2011 Page 11 just one property owner. Mr. Chave said the items on the list have been pursued and talked about at various levels for quite some time. He said the list is intended to represent the uses that have been identified to this point. He noted that the City Council would also have the ability to add additional uses to the list prior to their final approval. Board Member Johnson reminded the Board that in previous discussions with the CEDC, public restrooms were identified as a desired public amenity. She suggested that the words “public restrooms” be inserted into Item C.3 as an example of a potential public amenity. Board Member Ellis requested clarification of how Criteria C.3 would be applied. Mr. Chave clarified that art features would only be required if the applicant chooses to utilize Criteria C.3, which calls for enhanced public space and amenities. Board Member Ellis suggested that the words “without limiting the scope of enhanced public space and amenities,” be added at the beginning of the second sentence to make it clear that developers can propose public space and amenities that are not included on the list of examples. BOARD MEMBER CLOUTIER MOVED THAT THE MOTION BE AMENDED TO CHANGE ITEM C.3 TO READ, “THE DEVELOPMENT INCLUDES ENHANCED PUBLIC SPACE AND AMENITIES. WITHOUT LIMITING THE SCOPE OF ENHANCED PUBLIC SPACE AND AMENITIES, EXAMPLES INCLUDE SUCH FEATURES AS PUBLIC RESTROOMS, ADDITIONAL BUILDING SETBACKS WHICH PROVIDE EXPANDED PUBLIC SIDEWALKS OR GATHERING SPACE, AND/OR COMBINED WITH EATING OR FOOD RETAIL SPACES WHICH INCLUDE OPEN AREAS ADJACENT TO THE SIDEWALK. ART FEATURES VISIBLE TO THE PUBLIC SHALL ALSO BE INCORPORATED INTO BUILDING AND/OR SITE DESIGN.” BOARD MEMBER JOHNSON SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. THE MAIN MOTION TO RECOMMEND APPROVAL OF THE PROPOSED LANGUAGE FOR ECDC 16.43.050 WAS UNANIMOUSLY APPROVED AS AMENDED. REVIEW OF EXTENDED AGENDA Mr. Chave announced that the Board Members have been invited to attend the CEDC’s June 15th meeting, at which the University of Washington/Cascade Land Conservancy Team will provide a final update on their work with the Five Corners and Westgate Commercial Centers before presenting their findings to the City Council. The Board would be invited guests of the CEDC and would not be voting on the item. He explained that after their presentation to the City Council, the Team would ask the City Council for authorization to begin the formal review of the Development Code and then the item will come before the Planning Board for review. Mr. Chave advised that Mr. Lien would be present at the Board’s June 22nd meeting to discuss the Shoreline Master Program Update. PLANNING BOARD CHAIR COMMENTS Chair Lovell did not provide any comments during this portion of the meeting. PLANNING BOARD MEMBER COMMENTS Board Member Stewart announced that the City of Bellingham is sponsoring their 9th Annual Imagine This! Home and Landscape Tour on June 25th and 26th from 10:00 a.m. to 5:00 p.m. She said she would not be able to attend the event. She encouraged Board members to visit http://sustainableconnections.org/events/9th-annual-home-and-landscape-tour for more information. She felt the event would be of interest to the Board given the City’s goal of implementing green initiatives in Edmonds. She would like ideas for promotional events to show off green projects that have occurred in the City. ADJOURNMENT The Board meeting was adjourned at 9:20 p.m. Packet Page 62 of 202 P a c k e t P a g e 6 3 o f 2 0 2 P a c k e t P a g e 6 4 o f 2 0 2 P a c k e t P a g e 6 5 o f 2 0 2 P a c k e t P a g e 6 6 o f 2 0 2 P a c k e t P a g e 6 7 o f 2 0 2 P a c k e t P a g e 6 8 o f 2 0 2 P a c k e t P a g e 6 9 o f 2 0 2 P a c k e t P a g e 7 0 o f 2 0 2 P a c k e t P a g e 7 1 o f 2 0 2 P a c k e t P a g e 7 2 o f 2 0 2 P a c k e t P a g e 7 3 o f 2 0 2 P a c k e t P a g e 7 4 o f 2 0 2 P a c k e t P a g e 7 5 o f 2 0 2 P a c k e t P a g e 7 6 o f 2 0 2 P a c k e t P a g e 7 7 o f 2 0 2 P a c k e t P a g e 7 8 o f 2 0 2 P a c k e t P a g e 7 9 o f 2 0 2 P a c k e t P a g e 8 0 o f 2 0 2 P a c k e t P a g e 8 1 o f 2 0 2 P a c k e t P a g e 8 2 o f 2 0 2 P a c k e t P a g e 8 3 o f 2 0 2 P a c k e t P a g e 8 4 o f 2 0 2 P a c k e t P a g e 8 5 o f 2 0 2 P a c k e t P a g e 8 6 o f 2 0 2 P a c k e t P a g e 8 7 o f 2 0 2 P a c k e t P a g e 8 8 o f 2 0 2 P a c k e t P a g e 8 9 o f 2 0 2 P a c k e t P a g e 9 0 o f 2 0 2 P a c k e t P a g e 9 1 o f 2 0 2 P a c k e t P a g e 9 2 o f 2 0 2 P a c k e t P a g e 9 3 o f 2 0 2 P a c k e t P a g e 9 4 o f 2 0 2 Item #__6a_ City of Edmonds  Planning Board   Meeting Date: June 8, 2011  Agenda Subject: Public Hearing on draft amendments to downtown BD zones.  Staff Lead /  Author:  Rob Chave    Initiated By:  City Council  Planning Board   City Staff   Citizen Request  Other:       The Planning Board had discussions on potential amendments to the downtown BD  zones during its meetings on March 9th, March 23rd , April 13th, and April 27th of this  year. The draft amendment language prepared for the public hearing show what the BD  zoning chapter would look like if the following features were included:  1. Uses in the BD1 (Retail Core) zone. Uses are restricted in the BD1 zone with revisions  to the Table in ECDC 16.43.020. While retail, restaurants and service businesses are  allowed, office or professional office uses must be located outside the 45‐foot  'designated street front.' Presumably if these rules are adopted, existing non‐ conforming uses would be dealt with via the nonconforming rules in the zoning code...  i.e. they would be able to continue as that type of use so long as they are occupied. In  addition, other kinds of office uses could locate behind the designated street front (i.e.  behind the first 45 feet) or on upper floors of a building. However, going forward, the  emphasis would be on pedestrian‐oriented retail, restaurant and service uses along  commercial street fronts within the BD1 zone. Another option being considered by the  Planning Board is to be even more restrictive, i.e. prohibiting office, professional office,  and service uses in the ‘designated street front’ of the BD1 zone. Only retail and  restaurant uses would be allowed along the street front.  2. Designated street front and commercial depth requirements. Commercial depth  requirements are changed to a consistent 45‐foot depth and are tied to a new expanded  map covering all BD zones. This replaces the 30‐foot requirement in the BD1 zone and  the 60‐foot requirement elsewhere. Staff believes the 30‐foot standard is too small to  ensure adequate commercial space. Conversely, it makes no sense to require a greater  Edmonds Planning Board  Agenda Memo  Packet Page 95 of 202 standard (i.e. 60 feet) outside the retail core. The map of ‘designated street fronts’ is  expanded in the code to include all BD zones, not just the BD1 zone. This helps clarify  where the primary pedestrian areas are throughout the downtown BD zones.  3. Step‐back requirements. The issue here is that it appears that the current step‐backs  built into the code end up removing too much of the upper portion of a building to be  feasible to enforce. This in turn ends up prohibiting a building from actually being built  within the established downtown height limits. In the sample draft provided for the  hearing, step‐backs are reduced from 15 feet to 5 feet. As another option, the Board is  also considering removing the requirement entirely. Currently, there is no step‐back  requirement in the BD1 zone, but a 15‐foot step‐back is required in other BD zones.   4. Development Agreements. Development agreements are authorized in the current  draft code amendment language (see ECDC 16.43.030.A and 16.43.050). The language in  ECDC 16.43.050 includes sample criteria and authorizes what can be modified by a  development agreement. The Planning Board has been discussing whether these are the  right criteria, and whether development agreements should be available in all BD zones.  For example, the Board has discussed not allowing these types of development  agreements in the BD5 zone (the Fourth Avenue Arts Corridor).    Packet Page 96 of 202 1 Chapter 16.43 BD – DOWNTOWN BUSINESS Sections: 16.43.000 Purposes. 16.43.010 Subdistricts. 16.43.020 Uses. 16.43.030 Site development standards. 16.43.035 Design standards – BD1 zone. 16.43.040 Operating restrictions. 16.43.000 Purposes. The BD zone has the following specific purposes in addition to the general purposes for business and commercial zones listed in Chapter 16.40 ECDC: A. Promote downtown Edmonds as a setting for retail, office, entertainment and associated businesses supported by nearby residents and the larger Edmonds community, and as a destination for visitors from throughout the region. B. Define the downtown commercial and retail core along streets having the strongest pedestrian links and pedestrian-oriented design elements, while protecting downtown’s identity. C. Identify supporting arts and mixed use residential and office areas which support and complement downtown retail use areas. Provide for a strong central retail core at downtown’s focal center while providing for a mixture of supporting commercial and residential uses in the area surrounding this retail core area. D. Focus development between the commercial and retail core and the Edmonds Center for the Arts on small-scale retail, service, and multifamily residential uses. [Ord. 3700 § 1, 2008]. 16.43.010 Subdistricts. The “downtown business” zone is subdivided into five distinct subdistricts, each intended to implement specific aspects of the comprehensive plan that pertain to the Downtown Waterfront Activity Center. Each subdistrict contains its own unique mix of uses and zoning regulations, as described in this chapter. The five subdistricts are: BD1 – Downtown Retail Core; BD2 – Downtown Mixed Commercial; BD3 – Downtown Convenience Commercial; BD4 – Downtown Mixed Residential; BD5 – Downtown Arts Corridor. [Ord. 3700 § 1, 2008]. Packet Page 97 of 202 2 16.43.020 Uses. A. Table 16.43-1. Permitted Uses BD1 BD2 BD3 BD4 BD5 Commercial Uses Retail stores or sales A A A A A Offices (including professional offices) A1 A A A A Service uses (including banks and real estate businesses) A A A A A Restaurants and food service establishments A A A A A Retail sales requiring intensive outdoor display or storage areas, such as trailer sales, used car lots (except as part of a new car sales and service dealer), and heavy equipment storage, sales or services X X X X X Enclosed fabrication or assembly areas associated with and on the same property as an art studio, art gallery, restaurant or food service establishment that also provides an on-site retail outlet open to the public A A A A A Automobile sales and service X A A X X Dry cleaning and laundry plants which use only nonflammable and nonexplosive cleaning agents C A A A X Printing, publishing and binding establishments C A A A C Community-oriented open air markets conducted as an outdoor operation and licensed pursuant to provisions in the Edmonds City Code A A A A A Residential Uses Single-family dwelling A A A A A Multiple dwelling unit(s) A A A A A Other Uses Bus stop shelters A A A A A Churches, subject to the requirements of ECDC 17.100.020 A A A A A Primary and high schools, subject to the requirements of ECDC 17.100.050(G) through (R) A A A A A Local public facilities, subject to the requirements of ECDC 17.100.050 C C C A C Packet Page 98 of 202 3 Permitted Uses BD1 BD2 BD3 BD4 BD5 Neighborhood parks, natural open spaces, and community parks with an adopted master plan subject to the requirements of ECDC 17.100.070 A A A A A Off-street parking and loading areas to serve a permitted use B B B B B Commuter parking lots in conjunction with a facility otherwise permitted in this zone B B B B X Commercial parking lots C C C C X Wholesale uses X X C X X Hotels and motels A A A A A Amusement establishments C C C C C Auction businesses, excluding vehicle or livestock auctions C C C C C Drive-in or drive-through businesses CX C A C X Laboratories X C C C X Fabrication of light industrial products not otherwise listed as a permitted use X X C X X Day-care centers C C C A C Hospitals, health clinics, convalescent homes, rest homes, sanitariums X C C A X Museums and art galleries of primarily local concern that do not meet the criteria for regional public facilities as defined in ECDC 21.85.033 A A A A A Zoos and aquariums of primarily local concern that do not meet the criteria for regional public facilities as defined in ECDC 21.85.033 C C C C A Counseling centers and residential treatment facilities for current alcoholics and drug abusers X C C A X Regional parks and community parks without a master plan subject to the requirements of ECDC 17.100.070 C C C C C Outdoor storage, incidental to a permitted use D D D D D Aircraft landings as regulated by Chapter 4.80 ECC D D D D D Notes: A = Permitted primary use B = Permitted secondary use C = Primary uses requiring a conditional use permit D = Secondary uses requiring a conditional use permit X = Not permitted 1 = Office uses in the BD1 zone may not be located within a designated street front Packet Page 99 of 202 4 For conditional uses listed in Table 16.43-1, the use may be permitted if the proposal meets the criteria for conditional uses found in Chapter 20.05 ECDC, and all of the following criteria are met: 1. Access and Parking. Pedestrian access shall be provided from the sidewalk. Vehicular access shall only be provided consistent with ECDC 18.80.060. When a curb cut is necessary, it shall be landscaped to be compatible with the pedestrian streetscape and shall be located and designed to be as unobtrusive as possible. 2. Design and Landscaping. The project shall be designed so that it is oriented to the street and contributes to the pedestrian streetscape environment. Fences more than four feet in height along street lot lines shall only be permitted if they are at least 50 percent open, such as a lattice pattern. Blank walls shall be discouraged, and when unavoidable due to the nature of the use shall be decorated by a combination of at least two of the following: a. Architectural features or details; b. Artwork; c. Landscaping. [Ord. 3700 § 1, 2008]. Packet Page 100 of 202 5 16.43.030 Site development standards. A. Development within the BD zones shall meet the following site development standards, unless a development is approved pursuant to ECDC 20.08 which meets the requirements of ECDC 16.43.050. Table 16.43-2. Sub District Minimum Lot Area Minimum Lot Width Minimum Street Setback Minimum Side Setback1 Minimum Rear Setback1 Maximum Height2 Minimum Height of Ground Floor within the Designated Street Front4 BD15 0 0 0 0 0 25' 15' BD25 0 0 0 0 0 25' 12' BD35 0 0 0 0 0 25' 12' BD43,5 0 0 0 0 0 25' 12' BD55 0 0 0 0 0 25' 12' 1 The setback for buildings and structures located at or above grade (exempting buildings and structures entirely below the surface of the ground) shall be 15 feet from the lot line adjacent to residentially (R) zoned property. 2 Specific provisions regarding building heights are contained in ECDC 16.43.030(C). 3 Within the BD4 zone, site development standards listed in Table 16.43-2 apply when a building contains a ground floor consisting of commercial space to a depth of at least 60 feet measured from the street front of the building. If a proposed building does not meet this ground floor commercial space requirement (e.g., an entirely residential building is proposed), then the building setbacks listed for the RM-1.5 zone shall apply. See ECDC 16.43.030(B)(8) for further details. 4 “Minimum height of ground floor within the designated street-front” means the vertical distance from top to top of the successive finished floor surfaces for that portion of the ground floor located within the designated street front (see ECDC 16.43.030(B)); and, if the ground floor is the only floor above street grade, from the top of the floor finish to the top of the ceiling joists or, where there is not a ceiling, to the top of the roof rafters. “Floor finish” is the exposed floor surface, including coverings applied over a finished floor, and includes, but is not limited to, wood, vinyl flooring, wall-to-wall carpet, and concrete, as illustrated in Figure 16.43-1. Figure 16.43-1 shows a ground floor height of 15 feet; note that the “finished” ceiling height is only approximately 11 feet in this example. 5 Site development standards for single-family dwellings are the same as those specified for the RS-6 zone. Packet Page 101 of 202 16.43.030 Map 16.43-1: Designated Street Front for Properties in the BD1BD Zones Packet Page 102 of 202 Edmonds Community Development Code 16.43.030 Figure 16.43-1: Ground Floor Height Measurement B. Ground Floor. This section describes requirements for development of the ground floor of buildings in the BD zones. Packet Page 103 of 202 8 1. For all BD zones, the ground floor is considered to be that floor of a building which is closest in elevation to the finished grade along the width of the side of the structure that is principally oriented to the designated street front of the building (this is normally the adjacent sidewalk). For the purposes of this section, the ground “floor” is considered to be the sum of the floor planes which, in combination, run the full extent of the building and are closest in elevation to one another. For the purposes of this chapter, the definition of “ground floor” contained in ECDC 21.35.017 does not apply. 2. Designated Street Front. Map 16.43-1 shows the streets that define the designated street front for all properties lying within the BD1 zones, which is The designated street front is defined as the 30 45 feet measured perpendicular to the indicated street front of the building lot fronting on each of the mapped streets. For all other BD zones, the designated street front is established as the first 60 feet of the lot measured perpendicular to any street right-of-way, excluding alleys. 3. Minimum Height of the Ground Floor within the Designated Street Front. The minimum height of the ground floor specified in Table 16.43-2 only applies to the height of the ground floor located within the designated street front established in subsection (B)(2) of this section. 4. Access to Commercial Uses within the Designated Street Front. When a commercial use is located on the ground floor within a designated street front as defined in subsection (B)(2) of this section, the elevation of the ground floor and associated entry shall be within seven inches of the grade level of the adjoining sidewalk. “Grade” shall be as measured at the entry location. Portions of the ground floor outside the designated street front of the building need not comply with the access requirements specified in this section. 5. When the designated street front of a building is on a slope which does not allow both the elevation of the entry and ground floor within the designated street front to be entirely within seven inches of the grade level of the sidewalk, as specified in subsection (B)(4) of this section, the portion of the ground floor of the building located within the designated street front may be designed so that either: a. The entry is located within seven inches of the grade of the adjacent sidewalk, and the commercial portion of the ground floor located within the designated street front is within seven inches of the grade level of the entry; or b. The building may be broken up into multiple frontages, so that each entry/ground floor combination is within seven inches of the grade of the sidewalk. c. For corner lots, a primary entry shall be established for the purposes of determining where the ground floor entry rules detailed in this section shall apply. The first choice for the primary entry shall be either 5th Avenue or Main Street. In the case of the BD5 zone, the primary entry shall always be on 4th Avenue. Packet Page 104 of 202 16.43.030 6. Within the BD1 zone, development on the ground floor shall consist of only commercial uses, except that parking may be located on the ground floor so long as it is not located within the designated street front. 7. Within the BD2 and BD3 zones, development on the ground floor shall consist of only commercial uses within the designated street front. Any permitted use may be located on the ground floor outside of the designated street front. 8. Within the BD4 zone, there are two options for developing the ground floor of a building. One option is to develop the ground floor with commercial space, meeting the same requirements detailed for the BD2 and BD3 zones in subsection (B)(7) of this section. As a second option, if more residential space is provided so that the ground floor does not meet the commercial use requirements described in subsection (B)(7) of this section, then the building setbacks listed for the RM-1.5 zone shall apply. In the case where RM-1.5 setbacks are required, the required street setback shall be landscaped and no fence or wall in the setback shall be over four feet in height above sidewalk grade unless it is at least 50 percent open, such as in a lattice pattern. 9. Within the BD5 zone, one option is to develop the ground floor with commercial space, meeting the same requirements detailed for the BD2 zone in subsection (B)(7) of this section. When development of the ground floor does not conform to these requirements, then development within the BD5 zone shall meet the following requirements: a. The building shall be oriented to 4th Avenue. “Orientation to 4th Avenue” shall mean that: i. At least one building entry shall face 4th Avenue. ii. If the building is located adjacent to the public right-of-way, architectural details and/or applied art shall be incorporated into the building design to add interest at the pedestrian (i.e., ground floor) level. iii. If the building is set back from the street, landscaping and/or artwork shall be located between the building and the street front. b. Live/work uses are encouraged within the BD5 zone, and potential live/work space is required for new residential buildings if no other commercial use is provided on-site. i. If multiple residential uses are located on the ground floor, the building shall incorporate live/work space into the ground floor design in such a way as to enable building occupants to use portion(s) of their space for a commercial or art/fabrication use. “Live/work space” means a structure or portion of a structure that combines a commercial or manufacturing activity that is allowed in the zone with a residential living space for the owner of the commercial or manufacturing business, or the owner’s employee, and that person’s household. The live/work space shall be designed so that a commercial or fabrication or home occupation use can be established within the space. Packet Page 105 of 202 10 Figure 16.43-2: BD5 Development Building at right (foreground) shows landscaping located between building and street. Building at left (background) shows commercial space integrated with residential uses, and the entry oriented to the street. 10. Exceptions and Clarifications. The regulations for the ground floor contained in subsections (B)(1) through (9) of this section apply with the following exceptions or clarifi- cations: a. That in all areas the provision of pedestrian access to permitted residential uses is allowed as a permitted secondary use. b. The restrictions on the location of residential uses shall not apply when a single- family use is the only permitted primary use located on the property. c. Existing buildings may be added onto or remodeled without adjusting the existing height of the ground floor to meet the specified minimum height, so long as the addition or remodel does not increase the building footprint or its frontage along a street by more than 25 percent. Permitted uses may occupy an existing space regardless of whether that space meets the ground floor requirements for height. d. Parking is not considered to be a commercial use for the purposes of satisfying the ground floor commercial use requirement within the designated street front (e.g., when the first 30 45 feet of a building are within a designated street front in the BD1 zone, parking may not be located within that 30 45 feet). e. For properties within the BD2 or BD3 zone which have less than 90 feet of depth measured from the street front, parking may be located in the rearmost 30 45 feet of the property, even if a portion of the parking extends into the first 60 45 feet of the building. In no case shall the depth of commercial space as measured from the street front of the building be less than 30 feet. Packet Page 106 of 202 11 f. Within the BD2, BD3 and BD4 zones, if the first 60 45 feet of the building as measured perpendicular to the street consist only of commercial uses and permitted secondary uses, then permitted multiple-family residential unit(s) may be located behind the commercial uses. g. Recodified as ECDC 22.43.050(B)(4). h. Within the BD1 zone, each commercial space located on the ground floor within the designated street front shall be directly accessible by an entry from the sidewalk. C. Building Height Regulations. 1. The basic height limit is 25 feet (see definition of “height” detailed in ECDC 21.40.030). 2. Step-Back Rules. The following rules apply when calculating the maximum building height for any building in the specified zone(s) (see Figures 16.43-3 and 16.43-4 for illustrated examples). a. Within the BD2, BD3, or BD4 zones, an additional five feet of building height, not to exceed 30 feet, may be obtained if the building is designed to meet all of the following conditions: i. A building step-back is provided within 15 5 feet of any street front. Within the 155-foot step-back, the maximum building height is the lesser of 25 feet above grade at the property line (normally the back of the sidewalk) or 30 feet above the “average level” as defined in ECDC 21.40.030. For corner lots, a 155-foot step-back is required along both street fronts. If a building located on a corner lot has insufficient lot width (i.e., less than 40 feet of lot width) to enable it to provide the required step-back on both street fronts, then the step-back may be waived facing the secondary street. This waiver may not be granted for building step-backs required from Fifth Avenue, Dayton Street, or Main Street. ii. A 155-foot step-back is provided from the property line opposite the street front. Within the 15-foot step-back, the maximum building height is the lesser of 25 feet above grade or 30 feet above the “average level” as defined in ECDC 21.40.030. For corner lots for which a 155-foot step-back is required on more than one street front, there is no 155-foot step-back required from the property line opposite each street front. For the purpose of determining step- back requirements, alleys are not considered to be streets. iii. A building setback, in which the entire building is set back from the property line, may be substituted on a foot-for-foot basis for the required building step-back. For example, a fivetwo-foot building setback can be combined with a 103-foot building step-back to meet the 155-foot step-back requirement. b. Within the BD1 zone, building height may be a maximum of 30 feet in order to provide for a minimum height of 15 feet for the ground floor. The allowable building height is measured from the “average level” as defined in ECDC 21.40.030. Packet Page 107 of 202 12 Note: the diagrams on this page must be changed to match any changes to required the step-back (e.g. 0 or 5 ft) Packet Page 108 of 202 13 3. Within the BD5 zone, the maximum height may be increased to 30 feet if the building meets one of the following conditions. In addition, if the building is located within 15 feet of the public right-of-way, architectural details and/or applied art shall be incorporated into the building design, and the ground floor shall be distinguished from the upper portions of the building through the use of differences in materials, windows, and/or architectural forms. a. All portions of the building above 25 feet consist of a pitched roof such that the pitch of all portions of the roof is at least six-by-12 and the roof includes architectural features, such as dormers or gables of a steeper pitch, that break up the roof line into distinct segments. b. If the building does not make use of a pitched roof system as described in subsection (C)(3)(a) of this section, step-backs shall be required the same as for the BD2 zone, as described in subsection (C)(2) of this section. 4. Height Exceptions. In addition to the height exceptions listed in ECDC 21.40.030, the following architectural features are allowed to extend above the height limits specified in this chapter: a. A single decorative architectural element, such as a turret, tower, or clock tower, may extend a maximum of five feet above the specified height limit if it is designed as an integral architectural feature of the roof and/or facade of the building. The decorative architectural element shall not cover more than five percent of the roof area of the building. b. Roof or deck railings may extend a maximum of 42 inches above the specified height limit within any building step-back required under subsection (C)(2) of this section; provided, that the railing is constructed so that it has the appearance of being transparent. An example meeting this condition would be a railing that is comprised of glass panels. D. Off-Street Parking and Access Requirements. The parking regulations included here apply specifically within the BD zone. Whenever there are conflicts between the requirements of this chapter and the provisions contained in Chapter 17.50 ECDC, Off-Street Parking Regulations, the provisions of this chapter shall apply. 1. Within the BD1 zone, no new curb cuts are permitted along 5th Avenue or Main Street. 2. No parking is required for any commercial floor area of permitted uses located within the BD1, BD2, BD4, and BD5 zones. 3. No parking is required for any floor area in any building with a total building footprint of less than 4,800 square feet. E. Open Space Requirements. 1. For buildings on lots larger than 12,000 square feet or having an overall building width of more than 120 feet (as measured parallel to the street lot line), at least five percent of the lot area shall be devoted to open space. Open space shall not be required for additions to existing buildings that do not increase the building footprint by more than 10 percent. Open space shall be provided adjacent to the street front (street lot line). Such open space may be provided as any combination of: a. Outdoor dining or seating areas (including outdoor seating or waiting areas for restaurants or food service establishments); b. Public plaza or sidewalk that is accessible to the public; c. Landscaping which includes a seating area that is accessible to the public. 2. Required open space shall be open to the air and not located under a building story. Packet Page 109 of 202 14 3. In overall dimension, the width of required open space shall not be less than 75 percent of the depth of the open space, measured relative to the street (i.e., width is measured parallel to the street lot line, while depth is measured perpendicular to the street lot line). F. Historic Buildings. The exceptions contained in this section apply only to buildings listed on the Edmonds register of historic buildings. 1. If a certificate of appropriateness is issued by the Edmonds historic preservation commission under the provisions of Chapter 20.45 ECDC for the proposed project, the staff may modify or waive any of the requirements listed below that would otherwise apply to the expansion, remodeling, or restoration of the building. The decision of staff shall be processed as a Type II development project permit application (see Chapter 20.01 ECDC). a. Building step-backs required under subsection (C)(2) of this section. b. Open space required under subsection (E) of this section. 2. No off-street parking is required for any permitted uses located within a building listed on the Edmonds register of historic buildings. Note that additional parking exceptions involving building expansion, remodeling or restoration may also apply, as detailed in ECDC 17.50.070(C). Packet Page 110 of 202 15 3. Within the BD5 zone, if a building listed on the Edmonds register of historic buildings is retained on-site, no off-street parking is required for any additional buildings or uses located on the same property. To obtain this benefit, an easement in a form acceptable to the city shall be recorded with Snohomish County protecting the exterior of the historic building and ensuring that the historic building is maintained in its historic form and appearance so long as the additional building(s) obtaining the parking benefit exist on the property. The easement shall continue even if the property is subsequently subdivided or any interest in the property is sold. G. Density. There is no maximum density for permitted multiple dwelling units. H. Screening. The required setback from R-zoned property shall be landscaped with trees and ground cover and permanently maintained by the owner of the BD lot. A six-foot minimum height fence, wall or solid hedge shall be provided at some point in the setback, except for that portion of the BD zone that is in residential use. I. Signs, Parking and Design Review. See Chapters 17.50, 20.10, and 20.60 ECDC. Sign standards shall be the same as those that apply within the BC zone. J. Satellite Television Antennas. In accordance with the limitations established by the Federal Communications Commission, satellite television antennas greater than two meters in diameter shall be reviewed in accordance with the provisions of ECDC 16.20.050. [Ord. 3736 § 10, 2009; Ord. 3700 § 1, 2008]. 16.43.035 Design standards – BD1 zone. Design standards for the BD1 zone are contained in Chapter 22.43 ECDC. [Ord. 3700 § 1, 2008]. 16.43.040 Operating restrictions. A. Enclosed Building. All uses shall be carried on entirely within a completely enclosed building, except: 1. Public uses such as utilities and parks; 2. Off-street parking and loading areas, and commercial parking lots; 3. Drive-in businesses; 4. Plant nurseries; 5. Seasonal farmers’ markets; 6. Limited outdoor display of merchandise meeting the criteria of Chapter 17.65 ECDC; 7. Bistro and outdoor dining meeting the criteria of ECDC 17.70.040; 8. Outdoor dining meeting the criteria of Chapter 17.75 ECDC. B. Nuisances. All uses shall comply with Chapter 17.60 ECDC, Performance Standards. [Ord. 3700 § 1, 2008]. Packet Page 111 of 202 16 16.43.050 Development agreements. A. A development in a BD zone may be approved using the process and criteria described for development agreements in ECDC 20.08. B. What can be approved. A development agreement for a development in a BD zone may vary any of the site development standards contained in ECDC 16.43.030 or 16.43.040. {The following Alternative to “B” is also being considered} B. What can be approved. A development agreement for a development in a BD zone may vary any of the site development standards contained in ECDC 16.43.030 or 16.43.040 subject to the following limitation: 1. Building height limits may be increased to a maximum height of 35 feet or three stories, whichever is greater. C. Criteria for approval. In addition to the criteria described in ECDC 20.08, a development approved pursuant to a development agreement must be designed to attain at least a LEED Silver or equivalent level of green building certification. The development must also satisfy at least two of the following criteria: 1. The development is designed to attain at least a LEED Gold or equivalent level of green building certification; 2. The development incorporates one or more of the following uses designed to further the city’s economic development goals: a. a hotel; b. a post office; c. a farmers market; d. studio work space, housing or live-work space for artists. 3. The development includes enhanced public space and amenities. Examples include such features as additional building setbacks which provide expanded public sidewalks or gathering space, combined with eating or food retail spaces which include open areas adjacent to the sidewalk. Art features visible to the public shall also be incorporated into building and/or site design. Packet Page 112 of 202 ((((((((((((((((( (((((((((((((((((((((((((((((((((((((((((((( ((( ((( !! ((((((((((((((((((((((((((((((((((((((((((((( ! ! ! ! ! ! ! ((((((((((((((((((((((((((((((((((((((((((((((((((((( (((((((((((((((((((((((((( ! !!!! ! !!!! ! !!!! ((((((((((((( (((((((((((( (((( (((( ! !!!! ! !!!! ! !!!! ((( ((((( ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 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Br a c k e t t ' s La n d i n g No r t h Ol y m p i c B e a c h Br a c k e t t ' s La n d i n g So u t h Civic Pl a y f i e l d s Ci t y P a r k Ed m o n d s Ma r s h [e [e [e [e[e [e [e [e [e [e RS - 6 P PP P OS M P1 MP 2 CG W CW BC RS - 6 RS - 6 RM - 2 . 4 BD 3 BD 1 RM-1.5 BD 5 BD 4 RM - 1 . 5 RS-6 RS-6 RM - 1 . 5 RM - 3 BD 2 BD 2 BD2 BD 2 OR R- 1 9 7 9 - 4 R- 1 9 9 5 - 1 7 7 R -19 9 8 -20 7 R- 2 0 0 2 - 1 0 1 PRD 2002-102 M A I N S T D A Y T O N S TDALEYST M A P L E S T W A L N U T S TALDERST7THAVES 2 N D A V E N M A G N O L I A L NCEDARST 4 T H A V E N A D M I R A L W A Y J A M E S S T R A I L R O A D A V E 5 T H A V E N H E M L O C K W A Y H O W E L L W A Y S U N S E T A V E S H E M L O C K S T P I N E S T H O L L Y D R L A U R E L S T 3 R D A V E N B E L L S T M A I N S T 6 T H A V E N D A Y T O N S T H O M E L A N D D R W D A Y T O N S T 3 R D A V E S 4 T H A V E S E D M O N D S W Y / S R 1 0 4 6 T H A V E S 5 T H A V E S 7THAVEN W A L N U T S T 5 T H A V E S 7THAVES H E M L O C K W A Y S E A M O N T L N E R B E N D R 3 R D A V E S R A I L R O A D S T DURBINST S L AEDMONDSST 2 N D A V E S E D M O N D S S T 8THAVESBELLST 6 T H A V E S A L D E R S T S P R U C E S T A D M I R A L W A Y 8THAVES 2 N D A V E S 3 R D A V E S 4 T H A V E S S P R A G U E S T 4 T H A V E S 8THAVEN M O N D S W A Y / S R 1 0 4 4 T H A V E S M A I N S T D A Y T O N S TDALEYST M A P L E S T W A L N U T S TALDERST7THAVES 2 N D A V E N M A G N O L I A L NCEDARST 4 T H A V E N A D M I R A L W A Y J A M E S S T R A I L R O A D A V E 5 T H A V E N H E M L O C K W A Y H O W E L L W A Y S U N S E T A V E S H E M L O C K S T P I N E S T H O L L Y D R L A U R E L S T 3 R D A V E N B E L L S T M A I N S T 6 T H A V E N D A Y T O N S T H O M E L A N D D R W D A Y T O N S T 3 R D A V E S 4 T H A V E S E D M O N D S W Y / S R 1 0 4 6 T H A V E S 5 T H A V E S 7THAVEN W A L N U T S T 5 T H A V E S 7THAVES H E M L O C K W A Y S E A M O N T L N E R B E N D R 3 R D A V E S R A I L R O A D S T DURBINST S L AEDMONDSST 2 N D A V E S E D M O N D S S T 8THAVESBELLST 6 T H A V E S A L D E R S T S P R U C E S T A D M I R A L W A Y 8THAVES 2 N D A V E S 3 R D A V E S 4 T H A V E S S P R A G U E S T 4 T H A V E S 8THAVEN M O N D S W A Y / S R 1 0 4 4 T H A V E S Pa c k e t Pa g e 11 3 of 20 2 D R A F T M I N U T E S Community Service/Development Services Committee Meeting August 11, 2010 Elected Officials Present: Staff Present: Council Member Strom Peterson, Chair Rob Chave, Planning Manager Council Member Petso Brian McIntosh, Parks Director Rob English, City Engineer Stephen Clifton, CS/Econ Dev Director Phil Williams, Public Works Director The committee convened at 6:17 p.m. A. Continued discussion regarding a proposed “Tree Board.” Barbara Tipton, Rich Senderoff, and Ann Heckman participated in the discussion, explaining that the benefits and purpose of establishing a tree board are outlined in the draft ordinance. A major purpose is to move the city toward obtaining the Tree City USA designation, since having a tree board is a necessary requirement for obtaining that status. The ordinance does not introduce any new regulations or requirements beyond what the city is already doing, but the designation would enable the city to seek funding to help in researching and promoting the benefits of trees in the community. The tree board could also serve as a resource the city could draw on. The Committee also briefly discussed existing penalties for tree cutting, and agreed to discuss this subject further at the September meeting. ACTION: The Committee agreed to forward the draft ordinance to the City Attorney to put in final form for consideration for adoption by the full Council. B. Removing leashed dog restrictions in Hutt Park and the asphalt areas of Brackett's Landing north and south of the ferry terminal. Brian McIntosh explained that the proposal to extend provisions to allow dogs to be on-leash in Hutt Park came about at the April 20, 2010 public hearing in regard to a similar discussion for five other park areas in the City. Three of those parks were recommended to become on-leash (with restrictions) and Council decided not to extend that recommendation to Brackett’s Landing North & South. As Hutt Park was not part of the public hearing, it was decided to take this to Council Committee as the next step. Council President Bernheim tonight spoke in favor of extending the on-leash areas to both Brackett’s Landing North & South Parks adjacent to the ferry terminal. Consensus of the Committee was to move forward with the proposal for Hutt Park but deny the request to extend on-leash provisions to the Brackett’s Landing parks. ACTION: As this action would result in a code change, the Committee agreed that it should be forwarded to full Council as a public hearing at a future date. Packet Page 114 of 202 CS/DS Committee Minutes April 14, 2009 Page 2 2 C. Discussion on possible 'green' initiatives and zoning clarifications for downtown business zones. Rob Chave introduced the discussion by explaining that there are several items staff wishes to initiate to clean up in the existing downtown BD zones, such as the required depth of commercial uses, the zoning requirements along the 4th Avenue Arts Corridor, and clarifying where the commercial street frontages are outside of the BD1 zone. In addition, Stephen Clifton reported that staff has been fielding inquiries from major private interests on zoning requirements related to downtown; these interests range from individual property owners to developers of hotels and other projects. In all cases, concern has been expressed about working within existing code requirements. In light of the city’s adoption of its sustainability element, staff considers it a good time to see whether Council would be receptive to including incentives in the code that would promote features such as green building projects (LEED Gold being an example), expanded open space and sidewalk areas, or other amenities that would improve downtown streetscape and design. Additional height was noted as being something developers have asked about, and that small, carefully situated height bonuses implemented as part of a project-specific negotiated development agreement approved by Council, could be something that staff and the Council could develop within the code. Council Member Peterson noted that this could be something that fits well with the city’s economic development goals, as well as showing leadership in sustainability and green development. Council Member Petso expressed support for including green development standards within the code as a basic requirement, but said she did not support trading environmental benefits for any increases in height or other incentives. The Committee discussed the approach of asking the full Council to discuss the issue, or allow the Economic Development Commission to work with the Climate Committee and/or Planning Board to develop some ideas that could be brought back to the Committee for further discussion. ACTION: The Committee agreed to forward the staff recommended minor BD zone updates (review of the 4th Avenue Arts Corridor zoning and street frontage mapping) to the Planning Board for review. The Committee also forwarded the commercial depth requirements to the Planning Board, asking the Board to review the existing depth for the BD1 zone along with the other BD zones; the Committee expressed doubt that the existing 30-foot depth in the BD1 zone is adequate to encourage sustainable commercial use. ACTION: The Committee agreed to forward the issue of code incentives and/or requirements for sustainable development downtown to the EDC and Climate Committee to develop further, with ideas brought back to the Committee for further review and discussion. D. Proposed 8th Ave South pathway south of Alder Street. Rob English (City Engineer) presented Mr. Adams’ proposal to build a pathway between 802 and 724 Alder St. in the unimproved 8th Ave right of way. The pathway would begin at Alder St and continue to the existing path on the south half of the 8th Ave right of way between Alder and Walnut Streets. Mr. Adams has offered to hire and pay a contractor to construct the path. The conceptual drawing submitted by Mr. Adams was shown to the committee. The history on previous City Council action related to the possible vacation of 8th Ave and the pathway between Alder and Walnut Streets was discussed. In November 2005, the City Council decided not to pursue the vacation of 8th Ave and in February 2006, the City Council directed staff to build only the south half of the pathway between Alder and Walnut Streets. Packet Page 115 of 202 CS/DS Committee Minutes April 14, 2009 Page 3 3 The Committee recognized and asked for comments from Mr. and Mrs. Martin who own 724 Alder St. The Martins explained their observations of how the path is used by citizens and how they believe a new pathway is not necessary. They also expressed that Mr. Adams is one of four property owners adjacent to the unopened 8th Ave right of way between Alder and Walnut Streets and he is the only owner in favor of constructing the proposed pathway. ACTION: The Committee voted to not proceed with Mr. Adams’ request to construct the proposed pathway. Packet Page 116 of 202 AM-4128   Item #: 2. A. City Council Committee Meetings Date: 08/09/2011 Time:10 Minutes   Submitted For:Jim Tarte Submitted By:Carl Nelson Department:Finance Committee:Finance Type:Information Information Subject Title Quarterly report regarding fiber optic opportunities. Recommendation from Mayor and Staff For Information Previous Council Action Resolution 1234 - Support of Continued Development of Fiber Optic Opportunities as a Source of City Revenue. The Finance Committee reviewed the quarterly report on 04-12-11 and recommended placing the report on the City Council Consent Agenda. Narrative The August 24, 2010 presentation of "Edmonds Fiber Optic Broadband Initiative - Background and Update" resulted in Resolution 1234 - setting the policy to review Fiber Optic "opportunity that serves the interest of the citizenry of Edmonds" and requiring quarterly reports to the Finance Committee. Progress has been made and local private businesses, the Edmonds Center for the Arts, and the Port of Edmonds are considering using City of Edmonds fiber for a portion of their business needs.  SNOCOM has been presented with a contract for provision of internet services and we are awaiting their response. Attachment 1 shows a June 30th 2011 snapshot of expenditures to date (minor changes may occur due to month end postings) and, using these numbers, Attachment 2 shows the estimated break even date of April 2015 remains reasonable.  It should be noted that either the SNOCOM service provision or the other potential local business partners will move up the estimated break even date. Washington State Courts of Appeals on July 5th affirmed the Snohomish County Superior Court ruling the City has the ability to sell excess capacity to residents and businesses: “...we conclude the City has the statutory and constitutional authority to issue the bonds, and affirm.”  Attached is a copy of their ruling and a summary article from the attorney. Thanks to all CTAC members over the years for their support and effort to make this possible.  The City of Seattle's support of the appeal effort to date has reimbursed $24,249.08 of legal fees (thus reducing the City's Professional Services expenditures). About $4,000 of the legal fees since the beginning of the year are not reimbursable.   Overall, expenditures for the 2011 Fiber Optic Budget have been proceeding as expected.  The bulk of that amount will cover ISP charges (approx $13,200), equipment maintenance ($2,500), lease/rental of network software and PUD poles ($4,000). Due to legal fees, the $5,000 that has been set aside for Professional Services for specialized network configuration will not be available should the need arise in 2011, but can be drawn from Repairs should it be needed. Attachments Attachment 1: Fiber Project Costs Attachment 2: Fiber Project Costs Attachment 3: Appeal Summary - Foster Pepper Attachment 4: Appeals Court Decision Packet Page 117 of 202 Form Review Inbox Reviewed By Date City Clerk Linda Hynd 08/04/2011 01:03 PM Mayor Mike Cooper 08/04/2011 02:07 PM Final Approval Linda Hynd 08/04/2011 05:05 PM Form Started By: Carl Nelson Started On: 08/04/2011  Final Approval Date: 08/04/2011  Packet Page 118 of 202 20 0 6 2 0 0 7 20 0 8 20 0 9 20 1 0 20 1 0 20 1 1 2011 (as of Jun 30) Ti t l e / O b j e c t Ac t u a l s A c t u a l s A c t u a l s A c t u a l s A c t u a l s B u d g e t e d Bu d g e t e d P r e l i m A c t u a l s 31 0 S U P P L I E S - $ - $ - $ 7 , 8 8 8 . 9 9 $ - $ 7, 8 8 8 . 9 9 $ 1, 0 0 0 . 0 0 -$ 7,888.99 $ 35 0 S M A L L E Q U I P M E N T - - - 1 7 , 3 3 6 . 1 7 1, 4 6 3 . 6 2 1, 0 0 0 . 0 0 18 , 7 9 9 . 7 9 0. 0 0 - 18,799.79 $ 41 0 P R O F E S S I O N A L S E R V I C E S 7, 7 9 5 . 6 8 34 , 8 8 6 . 8 7 76 , 3 7 0 . 3 9 93 , 1 1 6 . 0 2 46 , 8 2 6 . 3 6 54 , 0 0 0 . 0 0 25 8 , 9 9 5 . 3 2 5, 0 0 0 . 0 0 4,289.39 263,284.71 $ 42 0 C O M M U N I C A T I O N S - - 3 4 , 1 8 6 . 0 6 43 , 9 3 2 . 9 5 21 , 1 0 9 . 4 4 25 , 0 0 0 . 0 0 99 , 2 2 8 . 4 5 13 , 2 0 0 . 0 0 5,497.20 104,725.65 $ 45 0 R E N T A L / L E A S E - - - 4 , 5 5 2 . 9 3 3, 9 4 8 . 0 0 - 8, 5 0 0 . 9 3 4, 0 0 0 . 0 0 - 8,500.93 $ 48 0 R E P A I R S & M A I N T E N A N C E - - - 2 , 4 5 6 . 3 9 11 4 . 4 6 3, 6 0 0 . 0 0 2, 5 7 0 . 8 5 2, 5 0 0 . 0 0 750.01 3,320.86 $ 49 0 M I S C E L L A N E O U S - - 6. 0 5 60 0 . 0 0 2, 7 7 2 . 4 7 - 3, 3 7 8 . 5 2 0. 0 0 - 3,378.52 $ 64 0 E Q U I P M E N T - 1 2 6 , 2 4 8 . 0 0 - - - - 1 2 6 , 2 4 8 . 0 0 0. 0 0 - 126,248.00 $ To t a l   7, 7 9 5 . 6 8 16 1 , 1 3 4 . 8 7 11 0 , 5 6 2 . 5 0 16 9 , 8 8 3 . 4 5 76 , 2 3 4 . 3 5 10,536.60 $ 536,147.45 $ re i m b u r s e m e n t ( a ) ( 2 0 , 8 7 4 . 0 8 ) (2 0 , 8 7 4 . 0 8 ) ‐33 7 5 Est:(24,249.08) 55 , 3 6 0 . 2 7 50 4 , 7 3 6 . 7 7 511,898.37 Fi b e r O p t i c B u d g e t ( P a g e 3 1 o f 2 0 0 9 / 2 0 1 0 B u d g e t ) 29 2 , 0 6 2 . 0 0 1 9 7 , 2 0 0 . 0 0 1 1 3 , 6 0 0 . 0 0 8 3 , 6 0 0 . 0 0 25 , 7 0 0 . 0 0 Di f f e r e n c e b e t w e e n b u d g e t a n d e x p e n d i t u r e s (1 8 1 , 4 9 9 . 5 0 ) $ (2 7 , 3 1 6 . 5 5 ) $ (5 8 , 2 3 9 . 7 3 ) $ (2 8 , 2 3 9 . 7 3 ) $ (2 3 7 , 0 5 5 . 7 8 ) $ (15,163.40)$ (252,219.18)$ (2 6 7 , 0 5 5 . 7 8 ) $ af t e r b u d g e t a d j a) At t a c h m e n t  1 Total as of 6/30/2011 20 1 0  Pr o f e s s i o n a l  Se r v i c e s  fi g u r e s  ta k e  in t o  co n s i d e r a t i o n  re i m b u r s e m e n t  by  pr o j e c t  pa r t n e r s  to t a l i n g   $2 0 , 8 7 4 . 0 8  th r o u g h  12 / 3 1 / 2 0 1 0 . Ci t y o f E d m o n d s Fi b e r P r o j e c t C o s t s FY 2 0 0 6 - 2 0 1 0 To t a l a s o f 12 / 3 1 / 2 0 1 0 Pa c k e t Pa g e 11 9 of 20 2 AT T A C H M E N T  2 Co s t s  in cu r r e d  to  da t e : De s c r i p t i o n 7/ 2 8 / 2 0 1 0 1 2 / 3 1 / 2 0 1 0 6 / 3 0 / 2 0 1 1 $7 , 8 8 8 . 9 9    $                 7, 8 8 8 . 9 9   $7,888.99   Sm a l l  Eq u i p m e n t : Sm a l l  sc a l e  pu r c h a s e s  fo r  sw i t c h i n g  an d  ro u t i n g  eq u i p m e n t   (a c c e s s o r i e s )  ne c e s s a r y  to  ex p a n d  th e  ne t w o r k s  ab i l i t y  to   ac c o m m o d a t e  ad d i t i o n a l  pa r t n e r s . $1 7 , 3 3 6 . 1 7                       18 , 7 9 9 . 7 9   $18,799.79   Pr o f e s s i o n a l  Sv c : Co n s u l t i n g  fo r  Co n f i g u r a t i o n ,  De s i g n ,  In s t a l l ,  Le g a l  fe e s  an d   co n s u l t i n g  fe e s  fo r  th e  Pr o g r a m  Di r e c t o r .  (J u l y  22 n d  MO U  wi t h   Ci t y  of  Se a t t l e  wi l l  re d u c e  th i s  by  $2 0 , 2 4 5 . 3 8 ) $2 3 6 , 4 3 9 . 1 1    $       23 8 , 1 2 1 . 2 4    $     239,035.63   Co m m u n i c a t i o n s : Fe e s  pa i d  to  th e  re g i o n a l  fi b e r  co n s o r t i u m  fo r  sh a r e d  co s t s  of   ce r t a i n  as s e t s  an d  fe e s  pa i d  fo r  In t e r n e t  ac c e s s . $9 2 , 9 0 2 . 8 2                      99 , 2 2 8 . 4 5   $104,725.65   Re n t a l  & Le a s e : Po l e  re n t a l $8 , 0 0 7 . 4 3                           8, 5 0 0 . 9 3   $8,500.93   Re p a i r  & Ma i n t e n a n c e : Fe e s  pa i d  to  th e  re g i o n a l  fi b e r  co n s o r t i u m  fo r  sh a r e d   Ma i n t e n a n c e  of  ce r t a i n  as s e t s  as  we l l  as  re p a i r s  to  wh o l l y  ow n e d   fi b e r  as s e t s . $2 , 5 7 0 . 8 5                          2, 5 7 0 . 8 5   $3,320.86   Mi s c e l l a n e o u s $6 2 8 . 5 2                           3, 3 7 8 . 5 2   $3,378.52   Eq u i p m e n t : Fi b e r  co n s t r u c t i o n  & Eq u i p m e n t  co s t s  as s o c i a t e d  wi t h   es t a b l i s h i n g  se r v i c e  an d  co n n e c t i o n  of  ne w  pa r t n e r s  to  th e   ne t w o r k . $1 2 6 , 2 4 8 . 0 0    $       12 6 , 2 4 8 . 0 0    $   126,248.00   TO T A L  Co s t s  to  Da t e $4 9 2 , 0 2 1 . 8 9   $5 0 4 , 7 3 6 . 7 7   $511,898.37          Es t i m a t e d  On g o i n g  Ex p e n d i t u r e s :   Pe r  Mo n t h 7/ 2 8 / 2 0 1 1 1 2 / 3 1 / 2 0 1 0 6 / 3 0 / 2 0 1 1 On g o i n g  co s t s  of  $1 9 6 / m o n t h  fo r  po l e  re n t a l  an d  co n s o r t i u m  du e s $1 9 6   $2 , 3 5 2   $3 , 3 3 2   $1,176   In t e r n e t  Se r v i c e  Pr o v i d e r $1 , 0 0 0   $1 2 , 0 0 0   $1 7 , 0 0 0   $6,000   Ci s c o  Ma i n t e n a n c e $2 , 0 0 0   $2 , 0 0 0   TO T A L S   $1 6 , 3 5 2   $2 2 , 3 3 2   $7,176   Re c u r r i n g  sa v i n g s  or  re v e n u e s  im p l e m e n t e d :   It e m To t a l  Re v e n u e Pe r  Mo n t h 7 / 2 8 / 2 0 1 0 1 2 / 3 1 / 2 0 1 0 6 / 3 0 / 2 0 1 1 Re p l a c e m e n t  of  (2 )  T ‐1' s  to  Ci t y  Of f i c e s  Be g a n  1/ 2 0 0 7 $1 , 1 0 0   $3 4 , 1 0 0   $3 9 , 6 0 0   $46,200   Vi d e o  Ar r a i g n m e n t  ‐   re d u c t i o n  tr a n s p o r t a t i o n  (F e b  20 1 0  es t i m a t e ) $2 , 7 5 0   $1 6 , 5 0 0   $3 0 , 2 5 0   $46,750   Vi d e o  Ar r a i g n m e n t  – re d u c t i o n  in  Ja i l  Da y s $2 , 7 6 9   $1 6 , 6 1 4   $3 0 , 4 5 9   $47,073   TO T A L  SA V I N G S $ 6 , 6 1 9 $ 6 7 , 2 1 4 $ 1 0 0 , 3 0 9 $ 1 4 0 , 0 2 3 Ne t R i v e r  (s t a r t i n g  Ja n  20 0 7 ,  in c r e a $4 8 , 5 0 0   $1 , 5 0 0   $4 8 , 5 0 0   $5 6 , 0 0 0 $ 6 5 , 0 0 0 TO T A L  BE N E F I T  TO  CI T Y $4 8 , 5 0 0   $8 , 1 1 9 $ 1 1 5 , 7 1 4 $ 1 5 6 , 3 0 9 $ 2 0 5 , 0 2 3 BA L A N C E ($ 3 7 6 , 3 0 7 . 8 9 ) ( $ 3 4 8 , 4 2 7 . 7 7 ) ( $ 3 0 6 , 8 7 5 . 3 7 ) Ye a r  to  pa y  of f : 4. 6 4. 3 3.8 Li k e l y  pa y  of f  da t e : 3 / 1 8 / 2 0 1 5 1 0 / 1 7 / 2 0 1 5 4 / 1 3 / 2 0 1 5 Sa v i n g s / R e v e n u e s  as  of Co s t s  as  of : It e m It e m Su p p l i e s : Mi s c e l l a n e o u s  pu b l i s h i n g  of  pl a n s ,  do c u m e n t s  an d  dr a w i n g s  in   su p p o r t  of  th e  pr o j e c t s  ma j o r  di r e c t i v e s .   Ye a r l y  an d  "T o  da t e "  Co s t s  as  of : Pa c k e t Pa g e 12 0 of 20 2 From:                              Foster Pepper News <fpnews@foster.com> Sent:                               Tuesday, July 05, 2011 3:49 PM To:                                   Foster Pepper News Subject:                          Foster Pepper News: Cities’ Authority to Offer Broadband Telecommunication Services to the Public is Upheld L EGAL N EWS B ULLETIN Cities’ Authority to Offer Broadband Telecommunication Services to the Public is Upheld July 5, 2011 Division I of the Washington Court of Appeals today affirmed the authority of cities to offer broadband telecommunication services to individuals and private businesses when they have broadband capacity that is in excess of the City’s own needs. In Re Limited Tax General Obligation Bonds of the City of Edmonds The City of Edmonds brought this declaratory judgment action to validate bonds the City had authorized (but not yet issued) to complete the fourth leg of its fiber optic telecommunication system. The City’s fiber optic system was built to allow remote metering of water meters as well as to provide other internal City communication, such as broadband communication with the City’s emergency responders. But, even with the City’s own use, there is substantial excess capacity available to provide broadband connections to individuals and businesses in the City at speeds far higher than are currently available from existing telephone and cable providers. Because there is no express statutory authority in Washington for a city to provide telecommunication services (as there is, for example, to provide water, sewer and electricity services), Edmonds brought a declaratory judgment action to test the authority to do so. Edmonds affirmed that authority in Snohomish County Superior Court and has now prevailed on appeal. The Court of Appeals pointed out that code cities such as Edmonds are vested with broad legislative powers limited only by the restriction that a local enactment cannot contravene the constitution or directly conflict with a statute. Here, there is no statute nor constitutional provision prohibiting the City from offering telecommunication services. Indeed the Court pointed out that in the analogous case of City of Issaquah v. Teleprompter, Inc. 93 Wn.2d 567, 611 P.2d 741 (1980), the Washington Supreme Court upheld Issaquah’s ownership and operation of a cable TV network, even though there is no express statutory authority for a city to own or operate a cable TV system. The record here, the Court noted, showed that Edmonds first built the fiber optic system for its own use, and only then made plans to make excess capacity available to the public. Upholding that plan, the Court of Appeals also relied on a Washington Supreme Court case decided For more information, please contact Will Patton in Foster Pepper’s Municipal Practice Group. Learn about other important legal bulletins in the Foster Pepper newsroom. If you do not wish to receive e-mail announcements from Foster Pepper, please send a message to news@foster.com. Foster Pepper PLLC Seattle | Spokane Subscribe to Foster Pepper’s News RSS Feed http://www.foster.com/RSS/FP_News.aspx Follow us on Twitter @FosterPepper http://www.twitter.com/fosterpepper Packet Page 121 of 202 nearly one hundred years ago. Chandler v. City of Seattle, 80 Wash. 154, 141 P. 331 (1914). In Chandler, the Supreme Court upheld the authority of the City of Seattle to offset the costs of providing electricity to itself by selling excess electricity and surplus steam power to the public through what then became Seattle City Light. The expenditure of public funds is authorized as long as the “bona fide intention” is for a public purpose. The contents of this communication are provided for informational purposes only and do not constitute legal advice. Packet Page 122 of 202 RICHARD D.JOHNSON, (‘nnrt 4rhiin,~vIw,tc,r/P1pr1r July 5,2011 The Court ofAppeals of the State of Washington Seattle DIVISION I OneUnion~Square 600University Street 98101-4170 (206)464-7750 TOD: (206)587- William Howard Patton Foster Pepper PLLC 1111 3rd Ave Ste 3400 Seattle,WA,98101-3299 pattw@foster.corn Hugh Davidson Spitzer Foster Pepper PLLC 1111 3rd Ave Ste 3400 Seattle,WA,98101-3299 pattw@foster.corn Steven James Peiffle Attorney at Law P0 Box 188 Arlington,WA,98223-01 88 steve@snolaw.com CASE #:64492-1-I In Re Limited Tax General Obligation Bonds of the City of Edmonds Snohomish County,Cause No.08-2-00023-9 Counsel: Enclosed is a copy of the opinion filed in the above-referenced appeal which states in part: “...we conclude the City has the statutory and constitutional authority to issue the bonds,and affirm.” Counsel may file a motion for reconsideration within 20 days of filing this opinion pursuant to RAP 12.4(b).If counsel does not wish to file a motion for reconsideration but does wish to seek review by the Supreme Court,RAP 13.4(a)provides that if no motion for reconsideration is made,a petition for review must be filed in this court within 30 days.The Supreme Court has determined that a filing fee of $200 is required. In accordance with RAP 14.4(a),a claim for costs by the prevailing party must be supported by a cost bill filed and served within ten days after the filing of this opinion,or claim for costs will be deemed waived. Sincerely, Richard D.Johnson Court Administrator/Clerk ssd Enclosure c:The Honorable Larry McKeeman Packet Page 123 of 202 IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION ONE IN THE MATTER OF THE LIMITED )No.64492-1-I TAX GENERAL OBLIGATION BONDS ) OF THE CITY OF EDMONDS,)—~ r ROWENA ROHRBACH,Public ) Representative,)PUBLISHED OPINION ~ /-~Appellant,)Z~t~” v.) ) CITY OF EDMONDS,) ) Respondent.)FILED:July 5,2011 SCHINDLER,J.—The City of Edmonds (City)authorized the issuance of $4.2 million in taxpayer bonds to extend and complete its fiber optic network in order to convert to a wireless water meter system,as well as provide broadband access to police,fire,and other public institutions.Because the issuance of the bonds is primarily for a public purpose,the City has the authority to allow private individuals and nongovernmental organizations to use the current excess capacity of its high-speed broadband network.We hold that the City’s decision to issue the taxpayer bonds does not violate article VII,section 1 of the Washington State Constitution and is not an unconstitutional gift of funds or lending of credit in violation of article VIII,section 7. FACTS The facts are not in dispute.In November 2004,the Edmonds City Council Packet Page 124 of 202 No.64492-1-1/2 formed a Citizens Technology Advisory Committee (CTAC).The “Edmonds CTAC Charter”defines the objective of the committee as follows: Within the framework of this charter, the CTAC seeks to advance the City’s interests by identifying and recommending viable technologies that will: —Stimulate economic activity within the City and help attract the types of businesses that will add to the City’s economic vitality and stabilize the operating revenues of City Government. —Allow City services to be offered in a way that optimizes the efficiency of the City Worker while improving the quality of service delivered to Edmonds Citizens. —Improve Public Safety functions by enabling seamless inter- jurisdictional communication and enabling more efficient deployment of Public Safety resources. —Help stabilize /recover Utility Tax and Franchise fee revenue. In March 2005,the CTAC issued a “Municipal WiFi Issue Paper”analyzing the need to create a City-owned high-speed broadband network. In June 2005,the Washington State Department of Transportation (WSDOT) requested expedited approval of permits and use of City-owned right-of-way to install 36 strands of fiber optic cable to link the Edmonds Ferry Terminal to the existing WSDOT fiber optic cable that runs along Interstate 5.The fiber optic link to the Edmonds Ferry Terminal was part of an infrastructure security initiative funded by the Department of Homeland Security. In exchange for the City’s agreement to expedite approval and the use of its right-of-way,WSDOT gave the City access to 24 of the 36 strands of fiber optic cable. WSDOT also agreed to allow the City to determine placement and installation of the fiber optic cable.The City requested installation and termination of the 24 strands at the Public Works Administration Building.The Public Works building is located near the Public Safety Building in downtown Edmonds. 2 Packet Page 125 of 202 No.64492-1-1/3 In late 2005,the City joined a consortium that owns and operates a 256-strand fiber optic cable that runs underground “from downtown Seattle to the King/Snohomish County Line along the centerline of Hwy 99.” The consortium includes the city of Seattle,King County,and the University of Washington.As a member of the consortium,the City was able to use six unallocated strands of fiber optic cable. In December 2006,the City completed construction of a link connecting the 24 fiber strands at the Public Works Administration Building to the six strands located at the county line under Highway 99,providing: [A]direct link to the regional internet connection hub at the Westin building in downtown Seattle and the fibers it had previously acquired from WSDOT running from the ferry terminal to the City’s Public Works Administration building off 212th Street in Edmonds. Completion of this link allowed the City to provide broadband internet service to other public institutions in the City,such as the Edmonds School District,Stevens Hospital, and Edmonds Community College,as well as other broadband users.By using its own broadband fiber optic network,the City obtained significant cost savings and performance improvements. The overall transmission capacity,or bandwidth,of a fiber optic network is defined by the smallest segment.Each strand of the City’s fiber optic network simultaneously transmits and receives up to 10 Giga (billion)bits per second (Gbps),or 10,000 Mega (million)bits per second (Mbps).Using the smallest segment of the City’s current fiber optic network,the six-strand link from the City to downtown Seattle, the current capacity is 60 Gbps. The bandwidth of the segment connecting the Edmonds Ferry Terminal to the Public Works Administration Building is 240 Gbps.It is anticipated 3 Packet Page 126 of 202 No.64492-1-1/4 that in the near future,it may be possible to expand the bandwidth of each strand to 100 Gbps. On April 16,2008,fiber optic network consultant Rick Jenness issued the “Edmonds Fiber Network”report addressing the City’s use of the fiber optic network as well as use by “other governmental,educational and not-for profit institutions.” The “Introduction”to the Report states that the City had been working for several years to establish a fiber optic network “to reduce municipal telecommunications costs while increasing telecommunications functionality.”In addition,the Introduction also states that the City had “examined two other uses for this network:providing high speed broadband access to other local governmental and not-for-profit entities,and expanding the network to provide . . .services for residents and businesses.” The Report recommends the City move ahead with “the development of the Edmond’s Fiber Network (EFN)for internal and intergovernmental uses.”The Report points out that future excess capacity would allow the City to offer access to the network to residents and businesses.However, based on estimates of the cost to provide a connection to each home,the Report recommends against expanding the network to provide service to all residential and commercial users. The Report recommends proceeding with a proposed project to extend the fiber network geographically in order to replace the water meters throughout the City with a wireless system. According to the Report,utility savings would offset the costs of replacing the water meters.The Report describes the proposed wireless water meter reading project as follows: By extending the EFN northward to the Seaview area, and southward towards Esperance area,the City can provide a wireless communications 4 Packet Page 127 of 202 No.64492-1-I/S infrastructure capable of remotely reading every water meter in the City without the need for employees of the Water Department to drive to each location and manually capture the meter value.Currently 37%of the City’s meters are over 20 years old,and a full 66%are over ten years old. As meters get older,their accuracy degrades causing lost revenue to the City. To read meters centrally,several radio reception points are needed to be located in various parts of the City.These reception points would be connected to the central office via an expansion of the City’s fiber optic backbone.The base cost of meter replacement (necessary in any event) is estimated at just under $2.0 million.Moving to smart meters adds just over $2.0 million. The Report sets forth the following costs for the project: ITEM BASE METER REPLACEMENT SMART METER COSTS TOTAL COST Replacement Water Meters $1,776,299 $1,776,299 Meter Radios 1,254,875 1,254,875 Base Station 180,700 180,700 Tower and Base 50,000 50,000 Fiber Extensions 100,000 100,000 Switching Equipment 75,000 75,000 WiFi Communications 300,000 300,000 Sales Tax 135,887 149,984 285,857 Grand Total $1,912,186 $2,110,559 $4,022,731 The City conducted a study of the wireless meter reading project analyzing the costs and benefits.The study estimates that the cost savings from a wireless water 5 Packet Page 128 of 202 No.64492-1-1/6 meter system are significant and that the costs incurred in converting to a wireless system would be offset in eight years. In July 2008,the City issued the “Edmonds Broadband Initiative Confidential Executive Summary.”The City recommended extending “the existing WSDOT backbone to connect other public sector partners who require high volume internet capacity,”and creating “a fiber optic ring that would connect the 5 major zones of the City”to allow “[e]lectronic [m]eter reading”1 and access by police officers,fire fighters, fire marshals,inspectors, and public works employees “while working in the field.” According to the Executive Summary,“[b]ecause of the large capacity of the fiber optic technology,”consideration should also be given to leasing “some of this excess capacity to commercial and residential users within the City thus accelerating the payback time of the investment.” On December 16,the City Council adopted”Ordinance No.3721.” Ordinance No.3721 authorizes issuing $4.2 million in general tax obligation bonds to install 24 strands of cable to connect the City’s existing fiber optic network backbone to radio towers in order to “construct a wireless water meter system and extend and improve the City’s fiber optic network both to support that system and for other municipal and public purposes.” Ordinance No.3721 states that completion of the network will allow the City to convert “all of the City’s water meters over to wireless meters that are read from centralized receivers connected to the fiber backbone”and provide “police,fire and other City employees”in the field with “wireless broadband connectivity.” Ordinance No.3721 also states that installation of 24 strands is “the most economical size to install (Boldface omitted.) 6 Packet Page 129 of 202 No.64492-1-1/7 due to its increased durability,wide availability and commodity like pricing.”Installing 24 strands results in significant current excess capacity of approximately 239,980 Mbps, or 99.99 16 percent in available capacity. Ordinance No.3721, Section 1 sets forth the City Council’s findings: 1.1 The City desires to construct,own and operate a wireless water meter system to replace its existing water meter system. 1.2 The City currently owns and operates a high capacity telecommunications fiber optic network that serves the City’s utility operations,public safety operations and other City services,and desires to extend and improve that system in order to support the new wireless water meter system and to enhance other utility operations, public safety operations,and other public services. 1.3 The extension and improvement of the City’s existing fiber optic network creates excess capacity that may be used to provide access to ultra high capacity internet and other telecommunications services; capacity for accommodating expanding technologies and demand; intergovernmental coordination and services (including educational and health institutions);and more and faster service to members of the public who are in need of those services. 1.4 The City is in need of financing a wireless water meter system and the extension and improvement of the City’s fiber optic network (the “Project,” as defined in Section 3,below),the estimated total cost of which is more than $4,200,000, and the City does not have available sufficient funds to pay the cost. 1.5 To pay costs of the Project,the City Council finds it necessary and advisable that the City issue and sell its limited tax general obligation bonds in the principal amount of not to exceed $4,200,000 (the “Bonds”). Based on the findings,the ordinance authorizes issuance of the bonds, describing the public purpose,as well as the intent to contract for use of the excess capacity with private individuals and entities.Ordinance No.3721,Seótion 3 provides: The City shall borrow money on the credit of the City and issue negotiable limited tax general obligation bonds evidencing that indebtedness as described in Section 4,for general City purposes to provide part of the 7 Packet Page 130 of 202 No.64492-1-1/8 funds with which to design and construct a wireless water meter system and extend and improve the City’s fiber optic network both to support that system and for other municipal and public purposes (the “Project”)(a)to enable timely,efficient and cost-effect [sic]water meter reading;(b)for use by City departments in order to enhance other utility operations, public safety operations,and other City services,(c)for use by other governmental, educational and health institutions pursuant to interlocal agreements and other contractual arrangements,and (d)to the extent capacity is available,for use under contract by private persons and entities that need access to high capacity internet and other high capacity telecommunications services,and to pay the costs of issuance and sale of the bonds (the “costs of issuance”).The general indebtedness to be incurred shall~be within the limit of up to 11/2 %of the value of the taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein. On December 23,the City filed a declaratory judgment action to determine the validity of Ordinance No.3721 and the decision to issue taxpayer bonds to expand the fiber optic network.The complaint describes the history of the current fiber optic network and states that the purpose of the bonds is to extend and improve the fiber optic network in order to provide funding to design and construct a wireless water meter system and use the network for other governmental purposes.The complaint describes the anticipated use of the network for “public safety and public works operations,”as well as providing “high capacity bandwidth communication to numerous other government entities.” Paragraph 22 of the complaint identifies a “fourth use”as the ability “to provide high bandwidth communication to individuals and non-government organizations that need access to high capacity internet connections.” The trial court designated Rowena Rohrbach as the taxpayer representative for the declaratory judgment action,and appointed counsel to represent Rohrbach and the taxpayers.Rohrbach’s answer admits all allegations in the complaint except paragraph 22.As to paragraph 22,the answer asserts that as a matter of law,the City is not 8 Packet Page 131 of 202 No.64492-1-1/9 authorized to “create public bonded indebtedness in part for the purpose of providing high band-width communications facilities for private use,”and state law does not authorize the City to provided telecommunication services. The City filed a motion for summaryjudgment. The City argued that as a matter of law,it has the authority to issue tax obligation bonds to extend the fiber optic network for public purposes,as well as allow the public to use the currently existing excess capacity.In support,the City submitted a number of declarations from a number of business owners interested in using the City’s network,including Dewar,Meeks & Ekrem,CPA and Europe Through the Back Door.In opposition,Rohrbach argued that the City was not authorized to issue taxpayer obligation bonds for a project that also benefits individuals and businesses,and the City has no authority to provide telecommunications services. The trial court granted the City’s motion for summaryjudgment. The court ruled that the City was authorized to issue taxpayer bonds,and to the extent available,the City had the authority to allow businesses and private individuals to use the current excess capacity of its fiber optic network.The court’s order states,in pertinent part: 1.The City of Edmonds’Motion for Summary Judgment is GRANTED. 2.The use of excess capacity on the City of Edmonds’high speed fiber optic communication system by private individuals and non- governmental businesses and organizations that need access to ultra high bandwidth communication is DECLARED to be a lawful public purpose of the City of Edmonds under its general “home rule”powers as a code city organized under Title 35A RCW and under the express statutory authority to engage in economic development programs under RCW 35.21.703. 3.The bonds authorized by Edmonds Ordinance No.3721 are DECLARED valid in all respects,including the use of the bonds for enhancement of the City’s high speed fiber optic communication system a.to enable timely,efficient and cost-effective water meter reading; 9 Packet Page 132 of 202 No.64492-1-1/10 b.for use by City departments in order to enhance other utility operations, public safety operations,and other City services; c.for use by other governmental,educational and health institutions pursuant to interlocal agreements and other contractual arrangements; d.to the extent capacity is available,for use under contract by private persons and entities that need access to high capacity internet and other high capacity telecommunications services;and e.to pay the costs of issuance and sale of the bonds. Rohrbach appeals. ANALYSIS Rohrbach contends that the City does not have the statutory authority to issue taxpayer obligation bonds to expand the fiber optic network for both a public purpose and the stated intent to allow private individuals and businesses to use the available current excess capacity. The City filed this declaratory judgment action under RCW 7.25 to determine the validity of Ordinance No.3721 and the issuance of taxpayer obligation bonds. RCW 7.25.010 provides,in pertinent part: Whenever the legislative or governing body of.. .any county,city,school district,other municipal corporation,taxing district,or any agency, instrumentality, or public corporation thereof shall desire to issue bonds of any kind and shall have passed an ordinance or resolution authorizing the same, the validity of such proposed bond issue may be tested and determined in the manner provided in this chapter. In King County v.Taxpayers of King County,133 Wn.2d 584,594-95,949 P.2d 1260 (1997),the Washington State Supreme Court adopted a three-part test to use in determining the validity of the issuance of taxpayer bonds in a declaratory judgment action under RCW 7.25.010: 1.Is there legislative or constitutional authority delegated to the municipality to issue the bonds for the particular purpose? 10 Packet Page 133 of 202 No.64492-1-I/Il 2.Was the statute authorizing the bond issue constitutionally enacted?If not constitutionally enacted or if unconstitutional for any other reason,the issue is void and recitals are of no effect. 3.Is the purpose for which the bonds are issued,a public and corporate purpose,as distinguished from a private purpose? The City has the burden of establishing the validity of the ordinance authorizing issuance of the bonds under RCW 7.25.010.King County,133 Wn.2d at 595. Legislative And Constitutional Authority To Issue Taxpayer Bonds Citing to RCW 35A.40.080,Rohrbach claims the City does not have the express authority to issue taxpayer bonds as authorized by Ordinance No.3721.We disagree. Article XI,section 11 of the Washington State Constitution gives code cities the authority to “make and enforce within [their]limits all such local police,sanitary and other regulations as are not in conflict with general laws.” The City of Edmonds was incorporated under the Optional Municipal Code, chapter 35A RCW.Optional Municipal Code cities are vested with broad legislative powers limited only by the restriction that an enactment cannot contravene the constitution or directly conflict with a statute.RCW 35A.11.020;Heinsma v.City of Vancouver,144 Wn.2d 556,560,29 P.3d 709 (2001);Winkenwerderv.City of Yakima, 52 Wn.2d 617, 622,328 P.2d 873 (1958). As a code city,the City of Edmonds is authorized to incur debt or borrow money for “strictly municipal purposes”without a vote of the taxpayers for “the amount of indebtedness authorized by chapter 39.36 RCW.”RCW 35.37.040; see also RCW 39.36.020(4)(requiring strictly municipal purpose for 11 Packet Page 134 of 202 No.64492-1-1/12 indebtedness under chapter 39.36 RCW).2 Nonetheless,Rohrbach argues that under RCW 35A.40.080,the City does not have express authority to issue taxpayer bonds to expand the fiber optic network.The plain language of RCW 35A.40.080 does not support Rohrbach’s argument.RCW 35A.40.080 unambiguously allows a code city to issue taxpayer bonds as authorized by other statutes,including RCW 35.37.040 and RCW 39.36.020. RCW 35A.40.080 provides: In addition to any other authority granted by law,a code city shall have authority to ratify and fund indebtedness as provided by chapter 35.40 RCW;to issue revenue bonds,coupons and warrants as authorized by chapter 35.41 RCW;to authorize and issue local improvement bonds and warrants,installment notes and interest certificates as authorized by chapter 35.45 RCW;to fund indebtedness and to issue other bonds as authorized by chapters 39.44, 39.48,39.52 RCW,RCW 39.56.020, and 39.56.030 in accordance with the procedures and subject to the limitations therein providedJ31 Rohrbach also asserts the City does not have the authority to operate a fiber optic network and provide private individuals and businesses with access to the network.But Rohrbach cites no authority expressly prohibiting the City from operating a fiber optic network and allowing access to its network.And in an analogous case,City of Issaguah v.Teleprompter Corp.,93 Wn.2d 567,572-75, 2 RCW 35.37.040 provides,in pertinent part: Every city and town,may,without a vote of the people,contract indebtedness or borrow money for strictly municipal purposes on the credit of the city or town and issue negotiable bonds therefor in an amount which when added to its existing nonvoter approved indebtedness will not exceed the amount of indebtedness authorized by chapter 39.36 ROW,as now or hereafter amended,to be incurred without the assent of the voters. Under ROW 39.36.020(2)(a)(ii),a code city may incur indebtedness of less than 1.5 percent of the assessed value of property in the city without a vote of the taxpayers.King County,133 Wn.2d at 608-09.Rohrbach does not argue that Ordinance No.3721 exceeds the City’s debt threshold. ~(Emphasis added.) 12 Packet Page 135 of 202 No.64492-1-1/13 611 P.2d 741 (1980),the Washington State Supreme Court held that absent an express legislative enactment to the contrary,the city of Issaquah was not prohibited from owning, operating,and providing cable television services.4 Issuance Of Taxpayer Bonds For A Public Purpose Rohrbach also contends that Ordinance No.3721 violates article VII,section 1 of the Washington State Constitution and RCW 35.37.040 because the City is not issuing taxpayer bonds strictly for public purposes. Rohrbach concedes that the bonds are being issued for a public purpose but asserts that because the City’s current use is only 0.0014 percent of the available bandwidth,the network primarily benefits private individuals and businesses. Article VII,section 1 of the Washington State Constitution provides,in pertinent part:“All taxes . . .shall be levied and collected for public purposes only.”Public funds cannot be used “to benefit private interests where the public interest is not primarily served.”Japan Line, Ltd.v.McCaffree,88 Wn.2d 93,98,558 P.2d 211 (1977). Accordingly,the expenditure of public funds by the municipality must further public purposes.CLEAN v.State,130 Wn.2d 782,792-93,928 P.2d 1054 (1996). What constitutes a “public municipal purpose is not susceptible of precise definition,since it changes to meet new developments and conditions of times.”United States v.Town of N.Bonneville,94 Wn.2d 827, 833,621 P.2d 127 (1980) (quoting 4We note that courts in other jurisdictions have reached the same conclusion as to telecommunication services.See In re Application of Lincoln Elec. Sys.,265 Neb.70,80-87,655 N.W.2d 363 (2003),overruled on other grounds;Nixon v.Mo.Mun.League,541 U.S. 125,124 S.Ct.1555,158 L. Ed.2d 291 (2004)(holding that a “home rule”city has the legal authority to provide telecommunication services incidental to other public purposes);GTE Nw.Inc.v.Or.Pub.Util.Comm’n,179 Or.Ct.App.46,39 P.3d 201 (2002)(holding that a county with ‘statutory home rule”powers has the authority to provide telecommunication services). 13 Packet Page 136 of 202 No.64492-1-1/14 McQuillin Mun.Corp.§39.19,at 32 (3d ed.1970)).In CLEAN,our Supreme Court concluded that “[a]n expenditure is for a public purpose when it confers a benefit of reasonably general character to a significant part of the public.”CLEAN,130 Wn.2d at 793 (quoting In re Marriage of Johnson,96 Wn.2d 255, 258,634 P.2d 877 (1981)). In CLEAN,the Court rejected the argument that the county’s issuance of taxpayer bonds violated article VII,section 1 if private individuals or businesses also benefit.In CLEAN, the Court addressed the question of whether the county’s decision to issue taxpayer bonds to construct a baseball stadium violated Washington Constitution article VII,section 1.CLEAN,130 Wn.2d at 792.The Court deferred to “the judgment of the Legislature”and held that issuance of the taxpayer bonds further public purposes even though the privately owned baseball club would also benefit from the expenditure of public funds. CLEAN,130 Wn.2d at 792-97,821. Likewise,in Chandler v.City of Seattle,8OWn.154,155-57,141 P.331 (1914),the Court upheld issuance of bonds to expand the municipal electricity plant.The planned expansion increased available electricity and reduced the cost of electricity.To further offset the cost,the city planned to sell excess electricity and surplus steam power to private parties. Chandler,80 Wn.at 156-57.The Court held that where a project has both public and private purposes,the expenditure of public funds is authorized as long as the “bona fide intention”5 is for a public purpose.Chandler,80 Wn.at 159. Rohrbach also argues the City must establish that the fiber optic network is necessary for “the continued economic and social viability”of the City.Bonneville,94 Wn.2d at 834.In an attempt to ~narrowlydefine a public purpose,Rohrbach misstates ~(italics omitted.) 14 Packet Page 137 of 202 No.64492-1-1/15 the holding in Bonneville.In Bonneville, the Court held that the city had authority to enter into land transactions with the government because the agreement directly benefited a significant number of the city’s residents and would allow the city to grow. Bonneville,94 Wn.2d at 834.The Court states that the fact that private ends are incidentally advanced is immaterial to the determination of whether legislation furthers a public purpose.Bonneville,94 Wn.2d at 834.Likewise,in CLEAN, the Court stated that “[w]here it is debatable as to whether or not an expenditureis for a public purpose, we will defer to the judgment of the legislature.”CLEAN,130 Wn.2d at 793 (quoting Anderson v.O’Brien,84 Wn.2d 64, 70,524 P.2d 390 (1974)).While the Court concluded that because the question of whether the construction of the baseball stadium would have an economic benefit was “debatable,”the Court deferred to the legislative findings that the new stadium would result in additional jobs,entertainment, and tourism. CLEAN,130 Wn.2d at 796-97. Here,as in CLEAN and Chandler, the record supports the determination that the City’s issuance of bonds to expand the fiber optic network furthers public purposes. Ordinance No.3721 expressly states that the primary purpose of issuing the taxpayer bonds is to expand the City’s fiber optic network in order to convert to a wireless water meter system. The City already has excess bandwidth capacity.Ordinance No.3721 authorizes extension of the geographic reach of the City’s fiber network throughout the entire City.The undisputed record also shows that the vast majority of the revenue generated by the bonds will be used to replace the existing water meters and install meter radios.Of the $4.2 million in taxpayer bonds,approximately $1.8 million will be spent on replacing water meters,and approximately $1.3 million on meter radios.By 15 Packet Page 138 of 202 No.64492-1-1/16 contrast,only $100,000 is needed to install the cable necessary to geographically extend the fiber optic network for the wireless water meter project.There is also no dispute that the wireless water meter project and use of the network for public safety purposes will improve services for the residents and save money.The City’s plan to allow additional public sector and intergovernmental agencies,and private individuals and businesses to use the current network “to the extent capacity is available”does not violate article VII,section I. Rohrbach also asserts that issuing bonds to expand the fiber optic network violates article VIII,section 7 of the Washington State Constitution.Washington Constitution article VIII,section 7 provides: No county,city,town or other municipal corporation shall hereafter give any money,or property,or loan its money,or credit to or in aid of any individual, association,company or corporation,except for the necessary support of the poor and infirm,or become directly or indirectly the owner of any stock in or bonds of any association,company or corporation. “The manifest purpose of [article VIII,section 7]. . .is to prevent state funds from being used to benefit private interests where the public interest is not primarily served.”CLEAN,130 Wn.2d at 797 (quoting McCaffree,88 Wn.2d at 98).In determining whether an expenditure of public funds violates article VIII,section 7 we look at consideration and donative intent. Gen. Tel.Co.of the Nw.,Inc.v.City of Bothell,105 Wn.2d 579, 588,716 P.2d 879 (1986).Courts do not inquire into the adequacy of consideration unless there is proof of donative intent or a grossly inadequate return.Adams v.Univ.of Wash.,106 Wn.2d 312, 327,722 P.2d 74 (1986). Rohrbach’s reliance on Lassila v.City of Wenatchee,89 Wn.2d 804,576 P.2d 54 (1978)is unpersuasive.In Lassila,the Washington Supreme Court held that the city’s 16 Packet Page 139 of 202 No.64492-1-1/17 decision to purchase property with the intent to resell it to a private party violates Washington Constitution article VIII,section 7 even if the city received a fair price and the sale furthered the city’s development efforts.Lassila, 89 Wn.2d at 811-12. In CLEAN, the Court distinguished Lassila in holding that the issuance of taxpayer bonds to construct a sports stadium was not an unconstitutional gift of public funds to the private tenant because the county remained the owner of the stadium and the private tenant had to pay reasonable rent.CLEAN,130 Wn.2d at 798-99. Again,the situation we faced in Lassila is not analogous to the present case.There, the City of Wenatchee was essentially acting as a middle person for a private enterprise.Wenatchee received nothing of value for its expenditure of public money and no public purposewas served by the expenditure.Here,unlike the situation in Lassila,we can discern no intent on the part of the Legislature to have the stadium sold to the Mariners, the Stadium Act providing that ownership of the facility is to remain in the hands of the public facilities district. CLEAN,130 Wn.2d at 799. Here,as in CLEAN,there is no question that the City will own the fiber optic network and plans to charge private individuals or businesses to use the available current excess capacity. CONCLUSION Because issuance of the taxpayer bonds as authorized by Ordinance No.3721 is for the primary purpose of expanding the fiber optic network in order to replace water meters with a wireless water meter system,as well as to provide public safety officers 17 Packet Page 140 of 202 No.64492-1-1/18 access to the network, we conclude the City has the statutory and constitutional authority to issue the bonds,and affirm. WE CONCUR: 18 Packet Page 141 of 202 AM-4107   Item #: 2. B. City Council Committee Meetings Date: 08/09/2011 Time:5 Minutes   Submitted By:Carrie Hite Department:Parks and Recreation Committee:Finance Type: Information Subject Title Park Trust Fund Ordinance amending City Code 3.16.020. Recommendation from Mayor and Staff Forward to full Council for approval. Previous Council Action March 27, 2003 Council passed Ordinance No. 3466, establishing ECC Chapter 3.16, the Parks Trust Fund.  December 2010: Council voted to transfer $36,500 from the general fund back into the Parks Trust Fund to address concerns of funds being used to carry out the intent of the donor. Narrative The City Council established ther Parks Trust fund in March, 2003.  Since that time, citizens have donated money to the city in order to help support Yost Pool, the Beautification program, and the Beach Ranger program.   We received a warning in the 2009 audit about the code and use of the parks trust fund being inconsistent with the RCW 35.21.100.  The RCW requires that funds be used to carry out the intent of the donor. In 2009-10 budget years, the city utilized some of the Parks Trust Fund to help general fund operations.  This was a concern of the City Council.  Council took action in December 2010 to transfer $36,500 from the general fund back into the Parks Trust Fund.  This ordinance amends the code to create consisitency of the city code with the RCW, protecting the intent of the donor.   Attachments Parks Trust Fund code amendment Form Review Inbox Reviewed By Date City Clerk Linda Hynd 08/04/2011 01:03 PM Mayor Mike Cooper 08/04/2011 02:07 PM Final Approval Linda Hynd 08/04/2011 05:05 PM Form Started By: Carrie Hite Started On: 07/21/2011 11:45 AM Final Approval Date: 08/04/2011  Packet Page 142 of 202 - 1 - ORDINANCE NO. _______ AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING THE PARKS TRUST FUND ADMINISTRATION PROVISIONS OF ECC 3.16.020; PROVIDING FOR SEVERABILITY; AND SETTING AN EFFECTIVE DATE. WHEREAS, RCW 35.21.100 authorizes every city and town by ordinance to accept any money or property donated, devised or bequeathed to it and to carry out the terms of the donation, devise or bequest if within the powers granted by law; WHEREAS, the City of Edmonds by ordinance created a Parks Trust Fund, set forth in Edmonds City Code Chapter 3.16, for the purpose of receiving donations from the City’s citizens for, or in aid of, the cost of operating, maintaining and improving the City’s parks and other related beautification, aquatic and environmental protection programs; and WHEREAS, the City would like to clarify the intended use of donations to the Parks Trust Fund; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. ECC 3.16.020 Administration of the Fund is hereby amended to read as follows (new text shown in underline; deleted text shown in strike-through 3.16.020 Administration of the fund. ): The council shall endeavor to utilize the interest earned by the fund in accord with the donors's wishes for the flower beautification, aquatics, environmental protection and other parks related programs, within the powers granted by law. The council shall use its best efforts not to invade the principal of the fund unless called upon by unforeseen budgetary needs. In the event that the principal of the fund is invaded, the council shall first attempt to utilize the principal for the costs of operating, maintaining and improving the flower beautification, aquatics, environmental protection and other parks related programs other similar programs such as programs for the arts, community beautification, parks acquisition or similar purposes. Ultimately, however, the Packet Page 143 of 202 - 2 - council shall maintain its absolute legislative discretion to use all available funds in the best interest of its citizens in accordance with the council's powers and duties pursuant to state law. Section 2. Severability Section 3. . If any section, sentence, clause or phrase of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. Effective Date APPROVED: . This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum, and shall take effect five (5) days after passage and publication of an approved summary thereof consisting of the title. MAYOR MIKE COOPER ATTEST/AUTHENTICATED: CITY CLERK, SANDRA S. CHASE APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: BY JEFFREY B. TARADAY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. Packet Page 144 of 202 - 3 - SUMMARY OF ORDINANCE NO. __________ of the City of Edmonds, Washington On the ____ day of ___________, 2011, the City Council of the City of Edmonds, passed Ordinance No. _____________. A summary of the content of said ordinance, consisting of the title, provides as follows: AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING THE PARKS TRUST FUND ADMINISTRATION PROVISIONS OF ECC 3.16.020; PROVIDING FOR SEVERABILITY; AND SETTING AN EFFECTIVE DATE. The full text of this Ordinance will be mailed upon request. DATED this _____ day of ________________, 2011. CITY CLERK, SANDRA S. CHASE Packet Page 145 of 202 AM-4109   Item #: 2. C. City Council Committee Meetings Date: 08/09/2011 Time:15 Minutes   Submitted By:Carrie Hite Department:Parks and Recreation Committee:Finance Type: Information Subject Title Old Milltown Courtyard budget review, project timing. Recommendation from Mayor and Staff Discuss Old Milltown Courtyard budget and timing of grant funding.  In order to complete construction of Old Milltown this Fall, additional city funds may need to be allocated pending grant funding from a local foundation. Previous Council Action Council authorized $40,000 for the construction of Old Milltown in the 2011 budget. Council received an update of Old Milltown, and have requested public comment and opportunity to approve final design in August.  Narrative We will be applying for Hazel Miller funds as soon as we have a Council adopted plan.  Unfortunately, we missed the July deadline.  The next deadline for submittal and review will be September 23, 2011, with decisions expected in the beginning of October.  This pushes construction back by a month this fall, and will be subject to the weather window in November.  The purpose of this discussion is to determine if Council is interested in completing the project this fall and would allocate additional REET funds in order to begin the project in September.  Once we apply for funds, and pending approval, we would then be able to use these funds for construction and not impact the REET.  Form Review Inbox Reviewed By Date City Clerk Linda Hynd 08/04/2011 01:03 PM Mayor Mike Cooper 08/04/2011 02:07 PM Final Approval Linda Hynd 08/04/2011 05:05 PM Form Started By: Carrie Hite Started On: 07/21/2011 12:08 PM Final Approval Date: 08/04/2011  Packet Page 146 of 202 AM-4129   Item #: 2. D. City Council Committee Meetings Date: 08/09/2011 Time:5 Minutes   Submitted For:Jim Tarte Submitted By:Carl Nelson Department:Finance Committee:Finance Type:Action Information Subject Title Review of minor chages by SNOCOM legal to the "Interlocal Agreement for SNOCOM Internet Access" that was approved for Mayor's signature on 11-16-2010  Recommendation from Mayor and Staff City Council authorize Mayor to sign interlocal Interlocal Agreement with SNOCOM. Previous Council Action The Finance Committee reviewed this agreement on 11-09-10, and on 11-16-10 recommended for signature by Mayor.  The Council has previously reviewed and approved two other interlocals (Edmonds Community College and Stevens Hospital) for the City to provide Internet services.  This would be the third. Narrative In reviewing the agreement for signature, SNOCOM clarified the arbitration section 14.1.3.  They have signed. After review of change City Attorney agrees to form.  Due to change it is appropriate for council to review before authorizing Mayor to sign. To review the intent of the agreement: SNOCOM and the City are connected by fiber that provides Police and the Fire Marshals access to SNOCOM information and dispatch services.  The City has offered to provide Internet Access to SNOCOM over the fiber connection.  The attached interlocal provdes the terms, conditions, and rates for that service. SNOCOM has expressed an initial interest for the City to provide service at the 20Megabit level which would result in monthly revenue to the City of $600.   Given our current fiber connection to SNOCOM there are no additional expenses anticipated to provide this service. Attachments SNOCOM signed Interlocal Form Review Inbox Reviewed By Date City Clerk Linda Hynd 08/04/2011 01:03 PM Mayor Mike Cooper 08/04/2011 02:07 PM Final Approval Linda Hynd 08/04/2011 05:05 PM Form Started By: Carl Nelson Started On: 08/04/2011  Final Approval Date: 08/04/2011  Packet Page 147 of 202 Packet Page 148 of 202 Packet Page 149 of 202 Packet Page 150 of 202 Packet Page 151 of 202 Packet Page 152 of 202 Packet Page 153 of 202 Packet Page 154 of 202 Packet Page 155 of 202 Packet Page 156 of 202 Packet Page 157 of 202 Packet Page 158 of 202 Packet Page 159 of 202 Packet Page 160 of 202 AM-4127   Item #: 2. E. City Council Committee Meetings Date: 08/09/2011 Time:10 Minutes   Submitted For:Councilwoman Buckshnis Submitted By:Jana Spellman Department:City Council Committee:Finance Type:Information Information Subject Title Update on financial policies and reporting - Finance Reserve Policy Examples Recommendation from Mayor and Staff Previous Council Action Financial Ordinance 3789 passed unanimously by City Council April 2010 and Resolution 1226 also was unanimously passed the same night. Attachment A:  Ord. 3789 Attachment B:  Resolution 1226 Narrative The City of Edmonds has $1.97 “act of God” reserve and a $1.3 million as well as, a one month’s expense reserve that is targeted for General Reserves.  Research has shown that Redmond, Lynnwood, Renton, and Shoreline utilized a one month reserve and Mukilteo is the only city that I could find that maintains two months.  The discussion tonight will be targeted to develop a reserve resolution and determine if we want to change the “Act of God” reserve back to a reserve for both economic downturn as well as an “act of God”. Also, we need to look at all reserves that the City has set aside and look at the percentage of reserves. From my review of Edmonds, the $1.9MM which represents 19% is in line with other cities I have reviewed. Of course, this does not include the $2.2 General Fund reserves set aside for general operating.  Attach 1 - Lynnwood Financial Policy Attach 2 - Mukilteo Financial Policy Attach  Attach 3 - Redmond Financial Policy Attach 4 - GFOA Unreserved Fund Ba   Attach 5 - General Fund Resolution Attachments Attach A - Ord. 3789 Attach B - Reso 1226 Attach 1 - Lynnwood Financial Policy Attach 2 - Mukilteo Financial Policy Attach 3 - Redmond Financial Policy Attach 4 - GFOA Unreserved Fund Ba Attach 5 -GENERAL FUND RRESOLUTION  Form Review Inbox Reviewed By Date Finance Jim Tarte 08/04/2011 01:08 PM City Clerk Linda Hynd 08/04/2011 01:09 PM Mayor Mike Cooper 08/04/2011 02:07 PM Final Approval Linda Hynd 08/04/2011 05:05 PM Packet Page 161 of 202 Final Approval Linda Hynd 08/04/2011 05:05 PM Form Started By: Jana Spellman Started On: 08/04/2011 08:52 AM Final Approval Date: 08/04/2011  Packet Page 162 of 202 Packet Page 163 of 202 Packet Page 164 of 202 Packet Page 165 of 202 Packet Page 166 of 202 Packet Page 167 of 202 Packet Page 168 of 202 Packet Page 169 of 202 Packet Page 170 of 202 City of Lynnwood, Washington 1 Resolution No. 2005- 04 2 A RESOLUTION REVISING FINANCIAL POLICIES FOR THE CITY. 3 4 Whereas the Lynnwood City Council adopted Resolution 2000-03 defining 5 recommended budget practices, including Secion 2.1 which recommend the development 6 of a series of financial policies; and 7 8 Whereas Resolution 2000-12 of the Lynnwood City Council adopted “Financial 9 Policies” for the City; and 10 11 Whereas it is intended that these policies would be reviewed and revised periodically; 12 and 13 14 Whereas the Lynnwood City Council has reviewed and deliberated on the recommended 15 revisions to the financial policies and finds that it is in the best interest of the city to 16 revise its financial policies; 17 Now, Therefore, the City Council of the City of Lynnwood does resolve that the 18 “Financial Management Policies” dated April 14, 2000 and adopted by Resolution 2000-19 12 are hereby amended as indicated in “Attachment A” and further directs the Mayor to 20 utilize such policies in preperation of city budgets. The city budget shall include 21 reference to, and the extent to which the preliminary budget complies with, the policies 22 23 EFFECTIVE DATE. This resolution shall take effect immediately upon passage 24 thereof. 25 ADOPTED by the City Council of the City of Lynnwood, Washington, at its regular 26 meeting head the 14th Date of April, 2005. 27 SIGNED AND APPROVED by the Mayor of the City of Lynnwood, Washington, this 28 _____ day of __________, 2005. 29 30 MMiikkee MMccKKiinnnnoonn,, MMaayyoorr 31 Attested to by: 32 33 MMiicchhaaeell EE.. BBaaiilleeyy,, FFiinnaannccee DDiirreeccttoorr 34 Approved as to Form: 35 36 GGrreegg RRuubbsstteelllloo,, CCiittyy AAttttoorrnneeyy 37 38 Packet Page 171 of 202 City of Lynnwood Financial Policies 2 1 Financial Management Policies 2 Adopted August 14, 2000 (Resolution 2000- 12) 3 Last Revised April 11, 2005 (Resolution 2005-04) 4 5 The safekeeping, proper use and management of the City resources are a very serious responsibility. This 6 task shall be conducted within the City of Lynnwood in such a way that the City shall be fully accountable 7 to the public for its fiscal activities. A spirit of openness and transparency shall be the context of the City’s 8 financial management program policies. 9 TTaabbllee ooff CCoonntteennttss PPaaggee 10 AApppplliiccaattiioonn aanndd UUssee ooff FFiinnaanncciiaall MMaannaaggeemmeenntt PPoolliicciieess ..............................................................................................................22 11 RReesseerrvvee FFuunndd PPoolliicciieess ........................................................................................................................................................................................................................22 12 RReesseerrvvee FFuunnddss ........................................................................................................................................................................................................................................33 13 DDeevveellooppmmeenntt FFuunnddss::....................................................................................................................................................................................................................33 14 GGeenneerraall RReevveennuuee PPoolliicciieess ............................................................................................................................................................................................................33 15 FFeeeess ........................................................................................................................................................................................................................................................................44 16 UUttiilliittyy RRaatteess ..............................................................................................................................................................................................................................................44 17 EExxppeennddiittuurree PPoolliicciieess ............................................................................................................................................................................................................................55 18 DDeebbtt MMaannaaggeemmeenntt PPoolliicciieess ........................................................................................................................................................................................................55 19 FFiinnaanncciiaall MMaannaaggeemmeenntt//SSttrraatteeggiicc FFoorreeccaassttiinngg PPoolliicciieess ....................................................................................................................66 20 BBaallaanncciinngg tthhee OOppeerraattiinngg BBuuddggeett ................................................................................................................................................................................66 21 LLoonngg RRaannggee PPllaannnniinngg ..................................................................................................................................................................................................................77 22 CCaappiittaall AAsssseett AAccqquuiissiittiioonn,, MMaaiinntteennaannccee,, RReeppllaacceemmeenntt aanndd RReettiirreemmeenntt ..............................................................77 23 IInnvveessttmmeenntt PPoolliiccyy......................................................................................................................................................................................................................................88 24 PPuurrcchhaassiinngg PPoolliiccyy......................................................................................................................................................................................................................................88 25 EEqquuiippmmeenntt RReeppllaacceemmeenntt RReesseerrvvee FFuunndd PPoolliiccyy ............................................................................................................................................88 26 Application and Use of Financial Management Policies 27 It is the intent of the City Council to utilize and reference these policies in decisions and other actions with 28 financial ramifications for the City. This section outlines examples of when and how these policies will be 29 specifically utilized. 30 a. Review of Financial Management Policies: 31 1) A Mid-Year Financial Review will be held each year in accordance with LMC 2.72.050. 32 2) The Financial Management Policies shall be reviewed as part of the Mid-Year Financial Review. 33 This review shall provide for any recommended changes to the policies by the Mayor or members 34 of the Lynnwood City Council. 35 b. Preliminary Budget to include reference to Financial Management Policies 36 1) The City shall prepare a Preliminary Budget in accordance with LMC 2.72.110. 37 2) The Preliminary Budget shall include an assessment of it conformance to the Financial Management 38 Policies and an explanation if there are areas of non-conformance. 39 3) The budget message shall include references as to how the Financial Management Policies were used 40 to develop recommendations for balancing the budget. 41 Reserve Fund Policies 42 Adequate reserve levels are a necessary component of the City’s overall financial management strategy and 43 key factor in external agencies’ measurement of the City’s financial strength. The City’s available reserves 44 are made up of an amount which is not expected to be expended (reserve funds) and an amount that is 45 intended to be invested for the betterment of the community (development funds). 46 Packet Page 172 of 202 City of Lynnwood Financial Policies 3 Reserve Funds 1 1) It is the policy of the City to maintain general reserves in an amount totaling 20% of revenues (20% 2 of the annual revenues or 10% of biennial budget revenue). 3 i) The reserve fund amounts shall be made up of two components; the Revenue Stabilization 4 Fund and the General Fund Unencumbered Fund Balance. 5 ii) Revenue Stabilization Fund 6 (1) It will be the policy of the City to maintain a Revenue Stabilization Fund at a level of at 7 least $2,000,000 in accordance with LMC 3.53. 8 iii) General Fund Unencumbered Fund Balance: 9 The City’s General Fund shall maintain an unencumbered fund balance of at least $4,000,000 10 (with a goal of $5,000,000) in order to provide for adequate operating cash. 11 (a) The City will review the unrestricted General Fund balance amount each July 12 pursuant to Reserve Fund Policy b.3 below. To the extent that the City’s audited 13 financial statements identify a General Fund balance in excess of the target, the 14 excess shall be allocated by the City Council. 15 Development Funds: 16 2) The City shall maintain a Program Development Fund as defined in LMC 3.51. The use of any funds 17 within the Program Development Fund shall be as defined by the Lynnwood Municipal Code. 18 3) The City will maintain a Capital Development Fund to provide funding for the six year Capital 19 Facilities Plan, less proprietary fund projects as defined by LMC 3.50. The use of any funds 20 within the Capital Development Fund shall be as defined by the Lynnwood Municipal Code. 21 4) Contributions to development funds will be made from available funds as identified in the “Mid-Year 22 Financial Review” pursuant to LMC 2.72.050, or during the budget process. The Finance Director 23 shall make a recommendation to the Council with regard to transfers to reserve funds as a part of 24 that report. The Council, by motion (and amending the budget by ordinance as necessary) shall 25 authorize the transfers as the Council shall determine to be appropriate at that time. 26 b. In accordance with RCW 41.16.050, the City shall maintain a Firemen’s Pension Fund to record all 27 monies received from taxes on fire insurance premiums received from the state, contributions made by 28 firefighters (before the inception of LEOFF I) and interest earned on the investment of these funds. 29 These funds are used to cover benefits payable to members (or to their survivors) who retired prior to 30 March 1, 1970 or who were active on that date. 31 c. All expenditures drawn from reserve accounts shall require prior Council approval unless previously 32 specifically authorized by the City Council for expenditure in the annual budget. 33 General Revenue Policies 34 a. To the extent possible, a diversified and stable revenue system will be maintained to shelter public 35 services from short-run fluctuations in any one revenue source. Trends analyzing the dependence on 36 distinct revenue sources shall be included in the budget documents for consideration by the Council. 37 b. Revenue forecasts for major revenues (those which represent at least 10% of the General Fund) will 38 present “conservative”, “optimistic” and “best estimates” forecasts and the rationale for each. The 39 forecasts shall be based on the best information available at the time and references to the sources of 40 information used in the estimates will be made available. 41 c. Revenue forecasts will assess the full spectrum of resources that can be allocated for public services. 42 Each year the Council shall review potential sources of revenue as part of the annual budget process. 43 d. Short-term (anticipated less than one year) economic downturns and temporary gaps in cash flow: 44 Expenditure reductions or restrictions may be imposed. Council may approve a contribution from the 45 Packet Page 173 of 202 City of Lynnwood Financial Policies 4 Revenue Stabilization Fund or interfund loans to address temporary downturns in City revenues. 1 Interfund loans may be utilized to cover temporary gaps in cash flow. 2 e. Long-term (greater than one year) revenue downturns: Deficit financing and borrowing to support on-3 going operations is not the policy of the City as a response to long-term revenue shortfalls. Revenue 4 forecasts will be revised. Expenses will be reduced to conform to the revised long-term revenue 5 forecast or revenue increases will be considered. 6 f. All potential grants shall be carefully examined for matching requirements. Some grants may not be 7 accepted if the local matching funds cannot be justified. Grants may also be rejected if programs must 8 be continued with local resources after grant funds are exhausted. 9 Fees 10 g. The City shall develop and maintain a comprehensive list of all fees and charges. 11 1) The fees and charges should be thoroughly reviewed utilizing a rate analysis approach in connection 12 with each biennial budget. 13 2) Fees shall be reviewed by general type as described below: 14 i) Development related fees (land use, building and property, fire marshall’s office and 15 engineering fees) shall be governed by separate ordinance; adjusted for inflation and 16 periodically subjected to a comprehensive rate analysis. 17 ii) Regulatory Fees (such as those related to Title 5 of the LMC) shall be governed by ordinance 18 and reviewed with each biennial budget process and when appropriate as the regulatory 19 conditions change. 20 iii) Recreation and parks use fees shall be set within a range by the Director of Parks, Recreation 21 and Cultural Arts as provided for by ordinance. A review of the fee ranges shall be conducted 22 with the biennial budget. 23 iv) General fees (such as rental rates, copy charges, and other miscellaneous fees) shall be 24 reviewed each biennial budget. 25 Utility Rates 26 v) Utility Fund Revenue and Rates 27 (1) The City will conduct an annual review of revenues in the city utilities as part of the Mid-28 Year Financial Review under LMC 2.72.050 29 (2) The revenues of the utilities should provide adequate resources to provide for the proper 30 operation of the related programs, servicing of related debt at prescribed levels, 31 maintenance of the capital plant, and adequate reserves. 32 (3) Utility rates shall be set utilizing the following guidelines: 33 Packet Page 174 of 202 City of Lynnwood Financial Policies 5 (a) The rate structure should encourage consumers to conserve natural resources while 1 providing a stable and predictable revenue base for the proper management of the 2 utility. 3 (b) The rates shall strive to be equitable among the classes (general types) of ratepayers. 4 (c) The revenue target of the utility rates should maintain a minimum of 1.5 times the 5 debt service payments for the utility in each ensuing year. 6 (d) Rates should be set using an assumption of 95% of the average water consumption 7 for the five previous years. 8 (e) A complete rate analysis shall be included with the proposed preliminary biennial 9 budget. 10 Expenditure Policies 11 a. The City will only propose operating expenditures that can be supported from on-going operating 12 revenues. Before the City undertakes any agreements that would create fixed on-going expenses, the 13 cost implications of such agreements will be fully determined for current and future years with the aid 14 of strategic financial planning models. Capital expenditures may be funded from one-time revenues, 15 but the operating budget expenditure impacts of capital expenditures will be reviewed for compliance 16 with this policy provision. 17 b. Department heads are responsible for managing their budgets within the total appropriation for their 18 department. 19 c. The City will maintain expenditure categories according to state statute and administrative regulation. 20 d. The City will assess funds for services provided internally by other funds. The estimated direct and 21 indirect costs of service will be budgeted and charged to the fund performing the service. Interfund 22 service fees charged to recover these costs will be recognized as revenue to the providing fund. A 23 review of the method for determining the amount of the interfund assessment will be reviewed at least 24 every 3 years. 25 e. Emphasis is placed on improving individual and work group productivity rather than adding to the 26 work force. The City will invest in technology and other efficiency tools to maximize productivity. 27 The City will hire additional staff only after the need of such positions has been demonstrated and 28 documented. 29 f. All compensation planning and collective bargaining will focus on the total cost of compensation which 30 includes direct salary, health care benefits, pension contributions, training allowance, and other benefits 31 of a non-salary nature which are a cost to the City. 32 33 Debt Management Policies 34 The City shall adopt policies to guide the issuance and management of debt. 35 a. The City may issue interfund loans consistent with LMC 3.90. 36 Packet Page 175 of 202 City of Lynnwood Financial Policies 6 b. All professional service providers (underwriters, financial advisors, bond insurer’s, etc.) selected in 1 connection with the City’s debt issues will be selected in accordance with the City’s procurement 2 policies. In most cases this will require a request for proposal process. 3 c. The term of long-term debt issued will not exceed the life of the projects financed. Current operations 4 will not be financed with long-term debt. 5 d. The City shall maintain an open line of communication with the rating agencies (Moody’s and Standard 6 and Poors), informing them of major financial events in the City as they occur. The Comprehensive 7 Annual Report (CAFR) shall be distributed to the rating agencies and The National Recognized 8 Municipal Information Repository Securities (NRMIRS) no later than July 31st of the following year of 9 the CAFR. The CAFR shall include all secondary market disclosure required by the SEC. 10 i) The City shall strive to maintain current credit ratings in the future. The current credit ratings 11 are: General Obligation - A1 with Moodys Investor’s Service and AA- with Standard and 12 Poors. Revenue Bonds are A with Moodys Investor’s Service and A+ with Standard and 13 Poors. City bond ratings are found each year in the notes to the financial statements in the 14 Comprehensive Annual Financial Report. 15 e. As part of the debt policy, the City will use debt ratios based on debt per assessed value, debt per 16 capita, and debt per capita as a percentage of per capita income as guides. These ratios will assist in 17 guiding amounts that the City will permit in debt issuance. 18 f. Assessment bonds will be issued in place of general obligation bonds, where possible, to assure the 19 greatest degree of public equity and flexibility for City finances. 20 g. The City will comply with all statutory debt limitations imposed by the Revised Code of Washington 21 (RCW). The City of Lynnwood debt will not exceed an aggregated total of 7.5% of the assessed 22 valuation of the taxable property within the City. Compliance with state law and this policy shall be 23 documented each year in the city’s Comprehensive Annual Financial Report. 24 The following individual percentages (as defined in state law) shall not be exceeded in any specific 25 debt category: 26 27 General Debt 2.5% of assessed valuation 28 Utility Debt 2.5% of assessed valuation 29 Open Space and Park facilities 2.5% of assessed valuation 30 31 h. No debt shall be issued for which the City is not confident that a sufficient, specifically identified 32 revenue source is available for repayment. The Finance Director shall prepare an analytical review for 33 this purpose prior to the issuance of any debt. 34 i. Credit enhancements shall be considered with a cost/benefit analysis for each long term bond issue. 35 j. Reserve accounts shall be maintained as required by bond ordinances and where deemed advisable by 36 the City Council. The city shall structure such debt service reserves so that they do not violate IRS 37 arbitrage regulations. 38 Financial Management/Strategic Forecasting Policies 39 Balancing the Operating Budget 40 It is the policy of the City of Lynnwood to adopt structurally balanced budgets. 41 a. A structurally balanced budget shall mean: 42 1) On-going expenditures shall be provided for by anticipated on-going revenue. 43 i) On-going expenditures do not include 44 (1) “One-time” items such as capital outlay, projects or studies 45 Packet Page 176 of 202 City of Lynnwood Financial Policies 7 (2) Allocations to other funds dependent on general revenues sufficient to balance dependent 1 budgets (ie: Street Fund, Solid Waste Fund). 2 ii) Anticipated on-going revenues may include: 3 (1) Recurring revenue such as taxes, fees, etc. 4 (2) A reasonable amount of resources remaining unspent from the previous year’s budget 5 based on historical experience and an assessment of the current budget. 6 (3) A portion of the unencumbered fund balance above the minimum levels established by 7 this policy. 8 b. The Mayor shall submit a balanced Preliminary Budget proposal as provided for in LMC 2.72.110. 9 1) The Mayor’s budget proposal shall balance all city funds. 10 2) The transfers between funds shall be clearly illustrated. 11 3) The use any proposed new revenues from proposed new fees or taxes should be clearly illustrated. 12 c. The anticipated amounts of city reserves (as described in this policy) should be clearly illustrated for 13 each fund. 14 1) The reserve estimates shall be provided for the beginning and the end of the Preliminary Budget 15 period (beginning and ending fund balances). 16 Long Range Planning 17 a. All decisions shall be within the context of long-range plans (Capital Facilities Plan / Strategic 18 Financial Plan). Staff shall provide a review of the implications of budgetary proposals on long-range 19 plans. Staff shall include a “fiscal note”, in a format to be provided by the Finance Director and 20 approved by the Council, with each action item on the council agenda. If no note is deemed necessary, 21 the agenda cover sheet shall so state. 22 b. The annual budget shall be developed consistent with state law and in a manner which encourages early 23 involvement with the public and City Council as provided for in LMC 2.72.030. A calendar of events 24 related to budget development shall be presented to the City Council in the 1st quarter of each year. 25 c. The annual budget will integrate into Capital Facilities Plan (CFP)/Strategic Financial Plan (SFP). The 26 annual budget shall be consistent with the current year of the CFP and SFP. Budget planning activities 27 shall be based on the next year of the SFP. 28 d. Assumptions used in the CFP and SFP will be noted and defined. 29 e. Basis of long-range planning will be results oriented. In accordance with LMC 2.72 and LMC 2.70 and 30 Resolution 2000-03, the City shall strive to illustrate the output from CFP and SFP expenditures. 31 Capital Asset Acquisition, Maintenance, Replacement and Retirement 32 a. The City shall develop a Capital Facilities Plan (CFP) as defined and required by RCW 36.70A.070 33 which is consistent with the City Comprehensive Plan annually at a time established by the City 34 Council. 35 b. Such plan shall include all projects to maintain public capital facilities required to maintain service 36 levels at standards established by the City Council. 37 c. The proposed CFP may include for consideration such other projects as requested by the City Council, 38 or Mayor. 39 Packet Page 177 of 202 City of Lynnwood Financial Policies 8 d. Funding for capital projects shall be classified as to source (general government, enterprise or other) 1 within the plan. 2 1) The extent to which funds exist for each project shall be described in the plan. 3 2) The plan shall integrate with the Proposed Preliminary Budget (LMC 2.72.110) in that funds 4 required for the projects recommended for the ensuing budget period shall be identified in the 5 Preliminary Budget. 6 3) The CFP shall include a recommended level of funding from general revenues in order to provide for 7 “on-going” projects (as defined in the CFP). 8 e. The plan shall be for a period of six years. 9 f. With the exception of “on-going projects”, each project shall be described such that development 10 phases are delineated as separate stages of the project. Examples include land acquisition, design and 11 construction. “On-going projects” represent annual capital programs such as street overlay, sidewalk 12 expansion or traffic signal rebuild. 13 g. An estimate for the operating budget impact of each proposed project shall be identified and 14 incorporated into the City Strategic Financial Plan. 15 h. The CFP shall be approved by ordinance annually. 16 17 The approving ordinance shall constitute a plan of action wherein no final approval to proceed with 18 specific projects is made, but requires specific authorization and appropriation by the Council in a 19 manner as the Council shall determine. 20 i. The adopted CFP shall constitute the City’s long-range financial plan for capital expenditures and shall 21 be consistent with the City Strategic Financial Plan. 22 Investment Policy 23 Refer to Resolution No. 2000-04, adopted February 14, 2000. 24 25 Purchasing Policy 26 Refer to LMC 2.92, adopted August 12, 1996. 27 28 Equipment Replacement Reserve Fund Policy 29 Refer to Resolution No. 2000-20, adopted December 11, 2000. 30 Packet Page 178 of 202 City of Mukilteo CITY OF MUKILTEO 11930 Cyrus Way, Mukilteo, WA 98275 Fund Balance Reserve Policy September 1, 2009 Packet Page 179 of 202 City of Mukilteo Fund Balance Policy 3 RESERVE AND CONTINGENCY FUND POLICIES Adequate fund balance and reserve levels are a necessary component of the City’s overall financial management strategy and a key factor in external agencies’ measurement of the City’s financial strength. Maintenance of fund balance for each accounting fund assures adequate resources for cash flow and to mitigate short-term effects of revenue shortages. Reserve funds are necessary to enable the City to deal with unforeseen emergencies or changes in condition. A. General Policy The City shall maintain reserves required by law, ordinance and/or bond covenants. All expenditures drawn from reserve accounts shall require prior Council approval unless previously authorized by the City Council for expenditure within the City’s annual budget. If reserves and/or fund balances fall below required levels as set by this policy, the City shall include within its annual budget a plan to restore reserves and/or fund balance to the required levels. All reserves will be presented in the City’s annual budget. B. Contingency Fund The City will maintain a Contingency Fund and shall maintain a reserve equal to $1,000,000 to provide a financial cushion to cover revenue shortfalls resulting from unexpected economic changes or recessionary periods or to provide funds in the event of major unplanned expenditures the City could face as a result of landslides, earthquake or other natural disaster. C. General Fund Operating Reserves The City will maintain a General Fund Operating Reserve to provide for adequate cash flow, budget contingencies, and insurance reserves. The General Fund Operating Reserves will be determined as follows: 1. Cash Flow Reserve: The City will maintain a cash flow reserve within the General Fund in an amount equal to two months of budgeted operating expenditures. The City will review annually the required cash flow reserve level that is necessary to meet the City’s cash flow needs. If it is determined that the two months of operating expenditure reserves is not adequate, the Finance Director shall propose an amendment to these policies. D. Hotel/Motel Lodging Tax Reserves The City will maintain a Hotel/Motel Lodging Tax Reserve of allocating grants to fund tourism promotional opportunities within the City. The City will maintain a cash flow reserve within the Hotel/Motel Lodging Tax Fund in an amount equal to one prior complete year’s revenues in ending fund balance. For example, the 2010 budgeted expenditures cannot exceed the 2008 actual revenues receipted into the fund. Packet Page 180 of 202 City of Mukilteo Fund Balance Policy 3 E. Technology Replacement Reserves The City will maintain a Technology Replacement Reserve for replacement of entity- wide computer hardware, software, or telephone equipment identified in the City’s Technology Replacement listing. The required level of reserve will equal each year’s scheduled replacement costs. For example, if the 2010 equipment replacement costs are budgeted at $100,000, the fund reserve balance must equal or exceed $100,000. Contributions will be made through assessments to the using funds and maintained on a per asset basis. F. Health Self-Insured Administration Reserves The City will maintain a Health Self-Insured Administration Reserve to provide Washington State mandated reserves for the City’s self-insured dental and vision benefits for City Employees. Reserves will be determined as follows: 1. The City will maintain a reserve in an amount equal to 16 weeks of budgeted expense as required by Washington State’s Office of Financial Management. The City will review annually the required reserve level that is necessary to meet the State’s requirements (Washington Administrative Code, WAC 82.60). G. Equipment and Vehicle Replacement Reserves The City will maintain fully funded reserve for the replacement of vehicles and equipment identified on the City’s equipment replacement listing. The required level of reserve will equal each year’s scheduled replacement costs. For example, if the 2010 equipment replacement costs are budgeted at $100,000, the fund reserve balance must equal or exceed $100,000. Contributions will be made through assessments to the using funds and maintained on a per asset basis. H. Surface Water Utility Fund Reserve The City shall maintain an operating reserve within the Surface Water Utility Fund an amount equal to no less than 20% of budgeted operating revenues. Packet Page 181 of 202 (Adopted by Council on October 7, 2008) FISCAL POLICY CITY OF REDMOND, WASHINGTON 1. General Financial Goals a. To provide a financial base sufficient to sustain municipal services to maintain the social well being and physical conditions of the City. b. To be able to withstand local and regional economic trauma, to adjust to changes in the service requirements of the community, and to respond to other changes as they affect the City's residents. c. To maintain a good credit rating in the financial community and assure taxpayers that Redmond city government is well managed financially and maintained in sound fiscal condition. 2. Operating Budget Policies a. The base operating budget is the City’s comprehensive two-year financial plan which provides for the desired level of city services as defined by the City’s goals, priorities, and objectives. A new base budget will be adopted every two years as a result of a comprehensive process incorporating any newly-approved programs, inflationary increases, and other expenses. The analysis and review of new programs must be initiated prior to inception of the Council’s budget review process. No “one-time” expenses will be carried forward into subsequent budgets without specific authority. b. Revenues and expenditures for the General Fund and all operating funds shall be projected for the ensuing biennium. c. Biennial operating budgets should provide for acceptable design, construction, maintenance and replacement of the City’s capital, plant, and equipment consistent with the Capital Facilities Plan. d. The City will maintain all its assets at an acceptable level to protect the City's capital investment and to minimize future maintenance and replacement costs. e. The City will develop an equipment replacement and maintenance needs analysis for the next several years and will update this projection every two years. From this projection a maintenance and replacement schedule will be developed and followed. (It is anticipated that this would occur on odd number years.) Packet Page 182 of 202 (Adopted by Council on October 7, 2008) f. All general government current operating expenditures will be paid from current revenues and cash carried over from the prior biennium. Current revenues and operating expenditures will be reviewed quarterly during the year. The city will avoid budgetary and accounting procedures which balance the current budget at the expense of future budgets. All budgetary procedures will conform to existing state and local regulations. The City of Redmond defines a balanced budget as operating revenues and beginning balances specifically designated within the budget as being carried into the next operating budget being at least equal to budgeted expenditures. It is the policy of the City to attempt to utilize beginning balances and other one-time revenues for one-time/non- recurring expenditures only. g. All supplemental appropriations for programs (appropriations requested after the original budget is adopted) will only be approved after consideration of the availability of revenues. 3. Revenue Policies a. The City will strive to maintain a diversified and stable revenue system to shelter it from short-run fluctuations in any one revenue source. The revenue mix should combine elastic and inelastic revenue sources to minimize the effect of an economic downturn. b. Because revenues, especially those of the General Fund, are sensitive to both local and regional economic activities, revenue estimates provided to the City Council shall be conservative. c. The City will estimate its biennial revenues by an objective, analytical process using best practices as defined by the Government Finance Officers Association. d. The City will project revenues for the next six years and will update this projection annually. The Finance Department will annually review and make available to the Finance Committee an analysis of each potential major revenue source. e. The City will establish all user charges at a level related to the cost of providing the service and within policy parameters established by the City Council. f. In each odd numbered year, the City will review user fees to adjust for the effects of inflation and other factors as appropriate. The City will set fees for user activities, such as recreational services, at a level to support the direct and appropriate indirect costs of the activity in accordance with council policy with regard to cost recovery unless specifically exempted by the City Council. g. The City will set fees and user charges for each enterprise fund, such as Water/Wastewater and Stormwater, at a level that fully supports the total direct and indirect cost of the activity. Indirect costs include the cost of annual depreciation of Packet Page 183 of 202 (Adopted by Council on October 7, 2008) capital assets. Additionally, for analysis and rate modeling purposes, the proposed rates shall also take into account debt service coverage commitments made by the City of 1.2 times annual debt service. 4. Expenditure Policies a. The City budget will provide for a sustainable level of service for the well being and safety of the community. b. The City’s operating budget will not use one-time revenues to support ongoing expenditures. c. The City will maintain expenditure categories according to state statute and administrative regulation. Capital expenditures shall meet the requirements of generally accepted accounting principles (GAAP). d. Services will parallel and adjust to the City's inelastic revenue sources in order to maintain the highest level of service. During periods of economic upturn, long-term expansion of core services will be limited to the anticipated increase of those sources. e. The City will forecast its General Fund expenditures annually for the next six years. The drivers and assumptions used in the forecast will be described. f. A cost allocation plan will be developed and incorporated into the City budget. The cost allocation plan will be the basis for distribution of general government costs to other funds or capital projects. 5. Capital Investment Budget Policies a. The City will make capital improvements in accordance with an adopted capital investment program. b. The capital investment program and the base operating budget will be reviewed at the same time to ensure that the City’s capital and operating needs are balanced with each other. c. The City will develop a six-year plan for capital improvements including operations and maintenance costs and update it every biennium. Capital expenditures will be forecasted taking into account changes in population, changes in real estate development, or changes in relevant economic condition of the City and the region. Packet Page 184 of 202 (Adopted by Council on October 7, 2008) d. The City will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted to Council for approval. The City will use intergovernmental assistance and other outside resources whenever possible. e. The City will determine the least costly financing method for all new projects. 6. Short-Term Debt Policies a. Short-term debt covers a period of three years or less. b. The City may use short-term debt to cover temporary cash flow shortages, which may be caused by a delay in receipting tax revenues or issuing long-term debt. c. The City may issue interfund loans rather than outside debt instruments to meet short- term cash flow needs. Interfund loans will be permitted only if an analysis of the affected fund indicates excess funds are available and the use of these funds will not impact the fund's current operations. All short-term borrowing will be subject to Council approval by ordinance or resolution and will bear interest based upon prevailing rates. 7. Long-Term Debt Policies Long Term debt is that debt which exceeds three years. a. The City will utilize long-term borrowing for capital improvements that cannot be financed on a pay-as-you-go basis from anticipated cash flows. b. Acceptable uses of bond proceeds are items which can be capitalized and depreciated. Refunding bond issues designed to restructure currently outstanding debt is also an acceptable use of bond proceeds provided that the net present value (NPV) of savings is at least 4%. c. The City will determine whether self supporting bonds (such as special assessment improvement district bonds) are in the City’s best interest when planning to incur debt to finance capital improvements. d. The City will not use long-term debt for current operations. e. The City will maintain good communications with bond rating agencies about its financial condition. The City will follow a policy of full disclosure on every financial report and bond prospectus including proactive compliance with disclosure to the secondary market. Packet Page 185 of 202 (Adopted by Council on October 7, 2008) f. General Obligation Bond Policy 1) Every project proposed for financing through general obligation debt shall be accompanied by a full analysis of the future operating and maintenance costs associated with the project. 2) Before general obligation bond propositions are placed before the voters, the capital project under consideration should have been included in the Capital Improvement Program. The source of funds should describe the intended use of bond financing. 3) Bonds cannot be issued for a longer maturity schedule than a conservative estimate of the useful life of the asset to be financed. g. Limited Tax General Obligation Bond Policies 1) As a precondition to the issuance of limited tax general obligation bonds, alternative methods of financing should also be examined. 2) Limited tax general obligation bonds should only be issued under certain conditions: • A project requires monies not available from alternative sources; • Matching fund monies are available which may be lost if not applied for in a timely manner; or • Catastrophic conditions. h. Financing of Lease Purchases Under Washington State law, the public may vote to approve bond issues for general government purposes in an amount not to exceed 2.5% of assessed valuation. Within the 2.5% limit, the Redmond City Council may approve bond issues and/or lease purchases up to 1.5% of the city's total assessed value. In addition, state law provides for an additional 2.5% of assessed valuation for parks and open space purposes with a vote of the public. 8. Reserve Fund Policies a. The City will maintain General Operating Reserves at a level equal to at least 8.5% of the total General Fund budgeted revenue, excluding the beginning fund balance, development review revenue, and any significant one-time revenue. A separate reserve shall be established for development review services. Packet Page 186 of 202 (Adopted by Council on October 7, 2008) These reserves shall be created and maintained to: 1) Provide sufficient cash flow to meet daily financial needs. 2) Sustain City services in the event of a catastrophic event such as a natural/manmade disaster (e.g. earthquake, windstorm, flood, terrorist attack) or a major downturn in the economy. In general, the City shall endeavor to support ongoing operations with ongoing revenues, but may use reserves on a one-time basis to support City services pending the development of a longer term financial solution. However, in no event shall reserves be used longer than one biennium to support City operations. If reserves are used, the City will begin to replenish these reserves at the end of the biennium if a surplus exists, but no later than the biennium following their use. b. Biennium surpluses in the General Fund will be used to fund one-time operations and capital expenditures, dedicated to the Capital Improvement Program or placed in an economic contingency account if: 1) There are surplus balances remaining after all current expenditure obligations and reserve requirements are met. 2) The City has made a determination that revenues for the ensuing biennium are sufficient to support budgeted General Fund operations. c. A surplus is defined as the difference between the actual beginning fund balance and the budgeted beginning fund balance. It consists of underexpenditures and excess revenues over and above the amounts included in the following biennial budget. d. The City may also maintain, at its discretion, an Economic Contingency to serve as a hedge against economic fluctuations, fund future one-time operational and capital needs or support City services on a one-time basis pending the development of a longer term financial solution. The source of funding for this reserve is the biennium surplus as outlined in sections 8b and 8c above. Restoration of this reserve is at the City’s discretion. e. The City will maintain a building permit reserve in the Operating Reserves Fund to provide for completion of building permit responsibilities in the event of a decline in development activity. This reserve will be equal to 25% of the annual building inspection and review costs. f. The City will maintain operating reserves in the following funds: 15% (55 days) for the Water/Wastewater Operations and Maintenance Funds, not including Metro Wastewater Treatment expenses, which shall have a reserve requirement of 2%, 5% for the Packet Page 187 of 202 (Adopted by Council on October 7, 2008) Stormwater Management Fund and 12% for the Solid Waste/Recycling Fund. This operating reserve shall be created and maintained to provide sufficient cash flow to meet daily financial needs and will be based upon total operating expenses. For budgeting purposes, operating expenses will be calculated upon the funds’ total expense budgets excluding ending fund balances, capital purchases, and the current year’s portion of principal paid on outstanding debt. g. A depreciation reserve shall be established to replace utility capital, plant, and equipment in the following funds: Water/Wastewater Operations and Maintenance and Stormwater Management. This reserve will be adjusted biennially by the most current year’s depreciation expense less bond reserves, principal paid on outstanding debt, and purchases of replacement capital. h. Bond reserves shall be created and maintained by the Water/Wastewater and Stormwater Utilities in accordance with the provisions set forth in the bond covenants. These shall be in addition to the reserves described above. i. The City shall additionally maintain the following Equipment Replacement Reserve Funds: 1) Fleet Maintenance Reserve; 2) Fire Equipment Reserve; and 3) Capital Equipment Reserve for general asset replacement. The Equipment Reserve Funds will be maintained at a level sufficient to meet scheduled equipment replacement so as to sustain an acceptable level of municipal services and prevent a physical deterioration of City assets. j. The City shall also maintain Reserve Funds as follows: 1) All statutorily required reserve funds to guarantee debt service; and 2) A vacation accrual reserve. No reserve shall be established for sick leave. One-fourth of accrued sick leave is payable only upon retirement and is not considered material. 9. Investment Policies The Finance & Information Services Director will annually submit an investment policy to the City Council for review. Packet Page 188 of 202 (Adopted by Council on October 7, 2008) 10. Special Revenue Policies a. The City will establish and maintain Special Revenue Funds which will be used to account for the proceeds of specific revenue sources to finance specified activities which are required by statute, ordinance, resolution, or executive order. b. Special Revenue Funds having biennial operating budgets will be reviewed by the City during the budget process. 11. Accounting, Auditing, and Financial Reporting Policies a. The City will establish and maintain a high standard of accounting practices. b. The accounting system will maintain records on a basis consistent with accepted standards for local government accounting and the State of Washington Budgeting, Accounting, and Reporting Systems. c. Regular monthly and annual financial reports will present a summary of financial activity by major types of funds. Such reports will be available via the City’s website (www.redmond.gov) d. A fixed asset system will be maintained to identify all City assets, their location, and their condition. e. The City will ensure that City records are audited annually and which will result in the issuance of a financial opinion. 12. Budget Calendar a. In order to facilitate and implement the budget process, the Mayor will propose a biennial budget calendar at the first regular Council meeting in March in every even year. b. The calendar will generally provide for a process that resembles the Recommended Practices as published by the Government Finance Officers Association. Packet Page 189 of 202 Appropriate Level of Unreserved Fund Balance in the General Fund (2002) Background. Accountants employ the term fund balance to describe the net assets of governmental funds calculated in accordance with generally accepted accounting principles (GAAP). Budget professionals commonly use this same term to describe the net assets of governmental funds calculated on a government’s budgetary basis.1 In both cases, fund balance is intended to serve as a measure of the financial resources available in a governmental fund. Accountants distinguish reserved fund balance from unreserved fund balance. Typically, only the latter is available for spending. Accountants also sometimes report a designated portion of unreserved fund balance to indicate that the governing body or management have tentative plans concerning the use of all or a portion of unreserved fund balance. It is essential that governments maintain adequate levels of fund balance to mitigate current and future risks (e.g., revenue shortfalls and unanticipated expenditures) and to ensure stable tax rates. Fund balance levels are a crucial consideration, too, in long-term financial planning. In most cases, discussions of fund balance will properly focus on a government’s general fund. Nonetheless, financial resources available in other funds should also be considered in assessing the adequacy of unreserved fund balance in the general fund. Credit rating agencies carefully monitor levels of fund balance and unreserved fund balance in a government’s general fund to evaluate a government’s continued creditworthiness. Likewise, laws and regulations often govern appropriate levels of fund balance and unreserved fund balance for state and local governments. Those interested primarily in a government’s creditworthiness or economic condition (e.g., rating agencies) are likely to favor increased levels of fund balance. Opposing pressures often come from unions, taxpayers and citizens’ groups, which may view high levels of fund balance as “excessive.” Recommendation. GFOA recommends that governments establish a formal policy on the level of unreserved fund balance that should be maintained in the general fund.2 GFOA also encourages the adoption of similar policies for other types of governmental funds. Such a guideline should be set by the appropriate policy body and should provide both a temporal framework and specific plans for increasing or decreasing the level of unreserved fund balance, if it is inconsistent with that policy. 3 The adequacy of unreserved fund balance in the general fund should be assessed based upon a government’s own specific circumstances. Nevertheless, GFOA recommends, at a minimum, that general-purpose governments, regardless of size, maintain unreserved fund balance in their general fund of no less than five to 15 percent of regular general fund operating revenues, or of no less than one to two months of regular general fund operating expenditures.4 A government’s particular situation may require levels of unreserved fund balance in the general fund significantly in excess of these recommended minimum levels.5 Furthermore, such measures should be applied within the context of 1 For the sake of clarity, this recommended practice uses the terms GAAP fund balance and budgetary fund balance to distinguish these two different uses of the same term. 2 Sometimes reserved fund balance includes resources available to finance items that typically would require the use of unreserved fund balance (e.g., a contingency reserve). In that case, such amounts should be included as part of unreserved fund balance for purposes of analysis. 3 See Recommended Practice 4.1 of the National Advisory Council on State and Local Budgeting governments on the need to “maintain a prudent level of financial resources to protect against reducing service levels or raising taxes and fees because of temporary revenue shortfalls or unpredicted one-time expenditures” (Recommended Practice 4.1). 4The choice of revenues or expenditures as a basis of comparison may be dictated by what is more predictable in a government’s particular circumstances. In either case, unusual items that would distort trends (e.g., one-time revenues and expenditures) should be excluded, whereas recurring transfers should be included. Once the decision has been made to compare unreserved fund balance to either revenues or expenditures, that decision should be followed consistently from period to period. 5 In practice, levels of fund balance, (expressed as a percentage of revenues/expenditures or as a multiple of monthly expenditures), typically are less for larger governments than for smaller governments because of the magnitude of the amounts involved and because the diversification of their revenues and expenditures often results in lower degrees of volatility. Packet Page 190 of 202 long-term forecasting, thereby avoiding the risk of placing too much emphasis upon the level of unreserved fund balance in the general fund at any one time. In establishing a policy governing the level of unreserved fund balance in the general fund, a government should consider a variety of factors, including: • The predictability of it revenues and the volatility of its expenditures (i.e., higher levels of unreserved fund balance may be needed if significant revenue sources are subject to unpredictable fluctuations or if operating expenditures are highly volatile). • The availability of resources in other funds as well as the potential drain upon general fund resources from other funds (i.e., the availability of resources in other funds may reduce the amount of unreserved fund balance needed in the general fund, just as deficits in other funds may require that a higher level of unreserved fund balance be maintained in the general fund). • Liquidity (i.e., a disparity between when financial resources actually become available to make payments and the average maturity of related liabilities may require that a higher level of resources be maintained). • Designations (i.e., governments may wish to maintain higher levels of unreserved fund balance to compensate for any portion of unreserved fund balance already designated for a specific purpose). Naturally, any policy addressing desirable levels of unreserved fund balance in the general fund should be in conformity with all applicable legal and regulatory constraints. In this case in particular, it is essential that differences between GAAP fund balance and budgetary fund balance be fully appreciated by all interested parties. Approved by the Committee on Accounting, Auditing and Financial Reporting and the Committee on Governmental Budgeting and Management, January 30, 2002 Approved by the Executive Board, February 15, 2002. Packet Page 191 of 202 RESOLUTION NO ___ RESOLUTION OF THE EDMONDS CITY COUNCIL TO CREATE A GENERAL RESERVE FUND WHEREAS, it is sound budgetary policy to have a one month expenditure as a reserve to the City’s general fund, and WHEREAS, the recent economic situation has illustrated the importance of having such a reserve fund, and WHEREAS, the reserve fund would have a positive effect on the City’s bond ratings, and WHEREAS, it is important to have transparency in call matters of financial disclosure in the City government, NOW THEREFORE BE IT RESOLVED that the City Council directs staff to prepare an ordinance creating a specific General Fund Reserve, separate from the General Fund and the Emergency Finance Reserve Fund, to be funded at a level of one month expenditure. THEREFORE BE IT FURTHER RESOLVED that this newly created General Reserve Fund is exclusive of the Emergency Finance Reserve Fund (natural calamity) and would be a financial emergency plan. This reserve would be a required contingency plan for sudden or severe decreases in locally collected revenue or intergovernmental aid and unexpected major capital maintenance requirement. THEREFORE BE IT FURTHER RESOLVED that any funds spent are to be restored beginning no later than six months after their first use in order to maintain the integrity of the fund. RESOLVED this day ____ of ______________________,____________. APPROVED: ______________________ MAYOR MIKE COOPER ATTEST/AUTHENTICATED: _____________________________________ CITY CLERK, SANDRA S. CHASE FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: RESOLUTION NO: ATTACHMENT 5 Packet Page 192 of 202 AM-4130   Item #: 3. A. City Council Committee Meetings Date: 08/09/2011 Time:10 Minutes   Submitted By:Gerry Gannon Department:Police Department Committee:Public Safety Type:Action Information Subject Title ILA with Okanogan County for Jail Services Recommendation from Mayor and Staff Recommendation from the Staff is for the Public Safety/Human Resource Committee approve for consent agenda at the Council Meeting on August 15, 2011. Previous Council Action None Narrative The police department currently is in contract with two jail facilities, Snohomish County and Lynnwood jails.  Snohomish County charges the department a one time $90 booking fee and $62.50 for daily fees for each inmate.  Lynnwood charges the department a one time booking fee of $10 and charges $65 a day for each inmate.  Okanogan County Jail will house our long term commitment at a rate of $51.00 a day for each inmate without a booking fee.  In addition, Okanogan County Jail will transport the inmate without any additional costs to the department. By entering into this agreement with Okanogan County the City will save money on long term jail commitments. The City Attorney as reviewed the the attached ILA and has approved the document as to form. Attachments Okanogan Jail Contract Form Review Inbox Reviewed By Date City Clerk Linda Hynd 08/04/2011 05:05 PM Mayor Mike Cooper 08/05/2011 09:35 AM Final Approval Linda Hynd 08/05/2011 10:09 AM Form Started By: Gerry Gannon Started On: 08/04/2011 01:07 PM Final Approval Date: 08/05/2011  Packet Page 193 of 202 1 AFTER RECORDING RETURN TO _____________________________ _____________________________ _____________________________ AGREEMENT BETWEEN OKANOGAN COUNTY, WASHINGTON AND THE CITY OF EDMONDS, WASHINGTON, FOR THE HOUSING OF INMATES IN THE OKANOGAN COUNTY JAIL THIS AGREEMENT is made and entered into on this day of _______ 2011 by and between the City of Edmonds, hereinafter referred to as "the City", and the Board of County Commissioners of Okanogan County, Washington, hereinafter referred to as "Okanogan County", each party having been duly organized and now existing under the laws of the State of Washington. WITNESSETH: WHEREAS, Okanogan County is authorized by law to operate a jail and the City is authorized by law to operate a jail; and WHEREAS, the City wishes to designate the Okanogan County jail as a place of confinement for the incarceration of one or more inmates lawfully committed to the City's custody; and WHEREAS, the Director of the Corrections Facility of Okanogan County is desirous of accepting and keeping in his/her custody such inmate(s) in the Okanogan County jail for a rate of compensation mutually agreed upon by the parties hereto; and WHEREAS, RCW 39.34.080 and other Washington law, as amended, authorizes any county to contract with any city to perform any governmental service, activity or undertaking which each contracting jurisdiction is authorized by law to perform; and WHEREAS, the governing bodies of each of the parties hereto have determined to enter into this Agreement as authorized and provided for by RCW 39.34.080 and other Washington law, as amended, NOW, THEREFORE, in consideration of the above and foregoing recitals, the payments to be made, the mutual promises and covenants herein contained, and for other good and valuable consideration, the parties hereto agree as follows: Packet Page 194 of 202 2 Section 1. GOVERNING LAW The parties hereto agree that, except where expressly otherwise provided, the laws and administrative rules and regulations of the State of Washington shall govern in any matter relating to inmate confinement pursuant to this Agreement. Section 2. DURATION This Agreement shall remain full force and effect from the effective date hereto until December 31, 2012, subject to earlier termination as provided by Section 3 herein. This Agreement may be renewed for like successive periods by written addendum under such terms and conditions as the parties may determine. Nothing in this Agreement shall be construed to make it necessary for the City to have inmates housed in Okanogan County continuously. Section 3. TERMINATION (a) By either party (b) . This Agreement may be terminated by written notice from either party to the other party and to the State Office of Financial Management as required by RCW 70.48.090, stating the grounds for said termination and specifying plans for accommodating the affected City Inmates, delivered by regular mail to the contact person identified herein, provided that termination shall become effective ninety (90) days after receipt of such notice. Within said ninety (90) days, the City agrees to remove its inmate(s) from the Okanogan County jail. By the City due to lack of funding (c) . The obligation of the City to pay Okanogan County under the provision of this Agreement beyond the current fiscal year is expressly made contingent upon the appropriation, budgeting, and availability of sufficient funds by and from the City of Edmonds. In the event that such funds are not budgeted, appropriated or otherwise made available for the purpose of payment under this Agreement at any time after the current fiscal year, then the City shall have the option of terminating the Agreement upon written notice to Okanogan County, except that all services provided to that point shall be compensated at the agreed rate. The termination of this Agreement for this reason will not cause any penalty to be charged to the City. Compensation Due for Services Rendered Section 4. MAILING ADDRESSES . In the event of termination of this Agreement for any reason, the City shall compensate Okanogan County in the same manner, and at the same rates, as if this Agreement had not been terminated, should any City inmates remain housed by Okanogan County after notice of such termination. (a) All notices, reports, and correspondence to the respective parties of this Agreement shall be sent to the attention of the following people, except as set forth in (b) below: Okanogan County Okanogan County Corrections : Street 149 4th Ave N Packet Page 195 of 202 3 City Okanogan, WA 98840 Contact Person: Noah Stewart City of Edmonds Chief of Police Al Compaan : 250 5th Edmonds, WA 98020 Avenue (b) Contact Person: Notification related to the Medical, Removal, Escape, or Death clauses herein shall be given by facsimile with a follow up telephone call to: The City of Edmonds Chief of Police shall serve as administrator or responsible official for this Agreement. PHONE NUMBER CONTACT Section 5. COMPENSATION (a) Rates (b) . Except as provided in subsection (b), Okanogan County agrees to transport City inmates at no transport cost to the City, between the Okanogan County Corrections Facility and the City Jail or such other location as designated by the City in order to transport inmates to and from the City, and to house the City inmates for compensation per day per inmate, at the rate of fifty-one dollars ($51.00) per day. Annual cost of living increase 100% of the June to June Seattle, Tacoma, and Bremerton CPI-W. Billing and payment Section 6. RIGHT OF INSPECTION . Okanogan County agrees to provide the City with an itemized bill listing all names of inmates who are housed, the case or citation number, the number of days housed including the date and time booked into Okanogan County’s jail and the date and time released from Okanogan County’s jail, and the dollar amount due for each. Okanogan County agrees to provide said bill on or about the 10th of each month. The City agrees to make payment to Okanogan County on or about thirty (30) days from the date the bill is received. The City shall have the right, but not the duty, to inspect at all reasonable times, all Okanogan County jails in which inmates of the City are confined in order to determine if such jail maintains standards of confinement acceptable to the City and if such inmates therein are treated equally regardless of race, religion, color, creed or national origin. Okanogan County shall be obligated to manage, maintain, and operate its facilities consistent with all applicable federal, state and local laws and regulations. Section 7. INMATE ACCOUNTS Okanogan County shall establish and maintain an account for each inmate received from the City and shall credit to such account all money which is received and shall make disbursements, debiting such account in accurate amounts for the inmate's personal needs. Disbursements shall be made in limited amounts as are reasonably necessary for personal maintenance. Okanogan County shall be accountable to the City for such inmate funds. At either the termination of this Packet Page 196 of 202 4 Agreement, the inmate's death, release from incarceration or return to either the City or indefinite release to the court, the inmate's money shall be transferred to the inmate's account in care of the City. If requested by the City, Okanogan County Corrections will return said inmate reimbursement to the City in the form of a check in the name of each inmate eligible for said reimbursement. Section 8. RESPONSIBILITY FOR INMATE'S CUSTODY (a) It shall be the responsibility of Okanogan County to confine the inmate or inmates; to provide treatment, including the furnishing of subsistence and all necessary medical and hospital services and supplies; to provide for the inmates' physical needs; to make available to them programs and/or treatment consistent with their individual needs; to retain them in said custody; to supervise them; to maintain proper discipline and control; to make certain that they receive no special privileges and that the sentence and orders of the committing court in the State are faithfully executed; provided that nothing herein contained shall be construed to require Okanogan County, or any of its agents, to provide treatment, facilities or programs for any inmates confined pursuant to this Agreement, which it does not provide for similar inmates not confined pursuant to this Agreement. (b) Except as provided in Section 12, it is expressly understood that Okanogan County shall not be authorized to transfer custody of any inmate confined pursuant to this Agreement to any party other than the City, or to release any inmate from custody without written authorization from the committing court. Section 9. MEDICAL SERVICES (a) Inmates from the City shall receive such medical, psychiatric and dental treatment as may be necessary to safeguard their health while housed in the Okanogan County jail. Okanogan County shall provide or arrange for the providing of such medical, psychiatric, and dental services. The City shall pay directly or reimburse Okanogan County for all costs associated with the delivery of medical services, or any emergency and/or major medical service, provided to the City inmates. (b) Okanogan County shall keep an adequate record of all such services. The City will be able to review at its request any medical or dental services of major consequence, in accordance with applicable law, including but not limited to HIPPA. Okanogan County will report to the City any medical or dental services of a major consequence as soon as is practical. (c) Should medical or dental services require hospitalization, the City agrees to compensate Okanogan County dollar for dollar any amount expended or cost incurred in providing the same; provided that, except in emergencies, the City will be notified either by phone or fax prior to the inmate's transfer to a hospital and nothing herein shall preclude the City from retaking the ill or injured inmates. Section 10. DISCIPLINE Okanogan County shall have physical control over and power to execute disciplinary authority over all inmates of the City. However, nothing contained herein shall be construed to authorize Packet Page 197 of 202 5 or permit the imposition of a type of discipline prohibited by state or federal law or the imposition of a type of discipline that would not be imposed on an inmate who is not confined pursuant to this Agreement. Section 11. RECORDS AND REPORTS (a) Before or at the time of delivery of each inmate, the City shall forward to Okanogan County a copy of all inmate records pertaining to the inmate's present incarceration at the City of Lynnwood or Snohomish County Jail. If additional information is requested regarding a particular inmate, the parties shall mutually cooperate to provide any additional information. (b) Okanogan County shall keep all necessary and pertinent records concerning such inmates in the manner mutually agreed upon by the parties hereto. During an inmate's confinement in Okanogan County, the City shall, upon request, be entitled to receive and be furnished with copies of any report or record associated with said inmate’s incarceration. Section 12. REMOVAL FROM THE JAIL Except for eligible inmates for correctional work details and under the direct supervision of a corrections officer, an inmate of the City legally confined in Okanogan County shall not be removed therefrom by any person without written authorization from the City or by order of any court having jurisdiction. Okanogan County agrees that no early releases or alternatives to incarceration, including furloughs, passes, home detention, or Work Release shall be granted to any inmate housed pursuant to this Agreement without written authorization by the committing court. This paragraph shall not apply to an emergency necessitating the immediate removal of the inmate for medical, dental, psychiatric treatment or other catastrophic condition presenting an imminent danger to the safety of the inmate or to the inmates or personnel of Okanogan County. In the event of any such emergency removal, Okanogan County shall inform the City of the whereabouts of the inmate or inmates so removed, at the earliest practicable time, and shall exercise all reasonable care for the safe keeping and custody of such inmate or inmates. Section 13. ESCAPES In the event any City inmate shall escape from Okanogan County's custody, Okanogan County will use all reasonable means to recapture the inmate. The escape shall be reported immediately to the City. Okanogan County shall have the primary responsibility for and authority to direct the pursuit and retaking of the inmate or inmates within its own territory. Any cost in connection therewith shall be chargeable to and borne by Okanogan County; however, Okanogan County shall not be required to expend unreasonable amounts to pursue and return inmates from other states or other counties. Section 14. DEATH OF AN INMATE (a) In the event of the death of a City inmate, the Okanogan County coroner shall be notified. The City shall receive copies of any records made at or in connection with such Packet Page 198 of 202 6 notification. Okanogan County will investigate any death within its facility and will allow the City to join in on the investigation. (b) Okanogan County shall immediately notify the City of the death of a City inmate, furnish information as requested and, subject to the authority of the Okanogan County coroner, follow the instructions of the City with regard to the disposition of the body. Written notice shall be provided within three calendar days of receipt by the City of notice of such death. All expenses relative to any necessary preparation of the body and shipment charges shall be paid by the City. With the City's consent, Okanogan County may arrange for burial and all matters related or incidental thereto, and all such expenses shall be paid by the City. The provisions of this paragraph shall govern only the relations between or among the parties hereto and shall not affect the liability of any relative or other person for the disposition of the deceased or for any expenses connected therewith. (c) The City shall receive a certified copy of the death certificate for any of its inmates who have died while in Okanogan County custody. Section 15. RETAKING OF INMATES In the event the confinement of any City inmate is terminated for any reason by either party, retaking of inmates shall be coordinated in the same manner and at the same rates as if this Agreement had not been terminated, or in a manner as agreed in writing by the parties. Section 16. HOLD HARMLESS AND INDEMNIFICATION (a) The City shall defend, indemnify and hold harmless Okanogan County, its officers, agents and employees from any claim, cost, judgment or damages, including attorneys' fees, arising from any City action or proceeding involving the confinement of any inmates from the City in Okanogan County: provided that this subsection shall not apply to any such claim, cost, judgment or damage that arises out of or in any way results from any allegations of any intentional, willful or negligent act or omission on the part of Okanogan County or any officer, agent or employee thereof. (b) Okanogan County shall defend, indemnify and hold harmless the City, its officers, agents and employees from any claim, cost, judgments or damages, including attorneys' fees, including third party claims, arising out of any action or omission of Okanogan County, its officers, agents, independent contractors, or employees while City inmates are in the custody of Okanogan County, or for any wrongful release of inmates placed in their custody, or for any claim by its employees, agents or independent contractors that may be asserted against the City in performing this Agreement. (c) An inmate shall become the responsibility of Okanogan County at the point that the inmate(s) is booked into Okanogan County jail or when the inmate(s) has been released to the care, custody and control of Okanogan County, including without limitation the point at which Okanogan County, or its agents, picks up inmates or transports inmates as in Section 5, whichever occurs first. Okanogan County shall hold the City harmless under the terms of this section for all claims arising out of the detention of the inmate(s). Accordingly, Packet Page 199 of 202 7 Okanogan County shall be held harmless by the City under the terms of this Agreement, for claims arising out of the arrest of the inmate(s), or arising out of any situation occurring prior to the time that Okanogan County assumes responsibility for the inmate(s). (d) The County and City hereby waive, as to each other only, their immunity from suit under industrial insurance, Title 51 RCW. This waiver of immunity was mutually negotiated by the parties hereto. (e) The provisions of this section shall survive any termination or expiration of this Agreement. Section 17. INSURANCE (a) Each party agrees to provide the other with evidence of insurance coverage, in the form of a certificate of insurance from a solvent insurance provider and/or a letter confirming coverage from a solvent self insurance pool, which is sufficient to address the insurance and indemnification obligations set forth in this Agreement. (b) Each party shall obtain and maintain coverage in minimum liability limits of one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) in the aggregate for its liability exposures, including comprehensive general liability, errors and omissions, auto liability and police professional liability. The insurance policy shall provide coverage for those events that occur during the term of the policy, despite when the claim is made. For the purpose of this paragraph, membership in a self insurance risk pool that provides coverage with limits that are no less than the policy and limits identified above shall satisfy the requirements of this section. Section 18. RIGHT TO REFUSE INMATE(S) (a) Okanogan County shall have the right to refuse to accept any inmate from the City when, in the opinion of Okanogan County, its inmate census is at capacity or so near capacity that there is a substantial risk that, through usual operation of the jail, the reasonable operational capacity limits of the jail might be reached or exceeded. (b) Okanogan County shall further have the right to refuse to accept any inmate from the City who, in the judgment of Okanogan County, has a current illness or injury which may adversely affect the operations of the Okanogan County jail, has a history of serious medical problems, presents a substantial risk of escape, or presents a substantial risk of injury to other persons or property. Section 19. MISCELLANEOUS In providing services under this Agreement, Okanogan County is an independent contractor and neither it nor its officers, agents or employees are employees of the City for any purpose, including responsibility for any federal or state tax, industrial insurance or Social Security liability. Neither shall the provision of services under this contract give rise to any claim of Packet Page 200 of 202 8 career service or civil service rights, which may accrue to an employee of the City under any applicable law, rule or regulation. Section 20. FINANCING There shall be no financing of any joint or cooperative undertaking pursuant to this Interlocal Agreement. There shall be no budget maintained for any joint or cooperative undertaking pursuant to this Agreement. Section 21. PROPERTY This Interlocal Agreement does not provide for the acquisition, holding or disposal of real or personal property. Section 22. JOINT ADMINISTRATIVE BOARD No separate legal or administrative entity is created by this Agreement. To the extent necessary, this Interlocal Agreement shall be administered by the City Clerk for the City of Edmonds, or his/her designee, and the Chairman of the Okanogan County Board of Commissioners, or his/her designee. Section 23. SEVERABILITY Any provision of this Agreement that is declared invalid or illegal shall in no way affect or invalidate any other provision. Section 24. MODIFICATIONS No changes or additions to this Agreement shall be valid or binding upon either party unless such change or addition be in writing and executed by both parties. Section 25. ENTIRE AGREEMENT Unless otherwise agreed in writing executed by both parties, on and after ________, and so long as this Agreement remains in effect, this document constitutes the entire Agreement between the City and Okanogan County under which the County houses City inmates, and no other oral or written agreements between the parties shall affect this Agreement. Section 26. ASSIGNMENT This Agreement, or any interest herein, or claim hereunder, shall not be assigned or transferred in whole or in part by the County to any other person or entity without the prior written consent of the City. In the event that such prior written consent to an assignment is granted, then the assignee shall assume all duties, obligations, and liabilities of Okanogan County stated herein. Packet Page 201 of 202 9 DATED at Okanogan, Washington this _____ day of _____________ 2011. CITY OF BOARD OF COUNTY COMMISSIONERS OKANOGAN, WASHINGTON By: __________________________ __________________________________ Mike Cooper, Mayor Andrew Lampe, Chairman __________________________________ ATTEST/AUTHENTICATED: Jim DeTro, Vice-Chair By: __________________________ __________________________________ Sandra S. Chase, City Clerk Don Hover, Member APPROVED AS TO FORM: ATTEST: _____________________________ __________________________________ Office of the City Attorney Lalena Johns, Clerk of the Board OKANOGAN COUNTY SHERIFF APPROVED AS TO FORM: By: ______________________________ ___________________________ Frank Rogers, Sheriff Steve Bozarth, Civil Deputy Packet Page 202 of 202