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2023-06-27 City Council PacketOp E D o Agenda Edmonds City Council tnl. }nyo REGULAR MEETING COUNCIL CHAMBERS 250 5TH AVE NORTH, EDMONDS, WA 98020 JUNE 27, 2023, 7:00 PM PERSONS WISHING TO JOIN THIS MEETING VIRTUALLY IN LIEU OF IN -PERSON ATTENDANCE FOR THE PURPOSE OF PROVIDING AUDIENCE COMMENTS CAN CLICK ON OR PASTE THE FOLLOWING ZOOM MEETING LINK INTO A WEB BROWSER USING A COMPUTER OR SMART PHONE: HTTPS://ZOOM. US/J/95798484261 OR COMMENT BY PHONE: US: +1 253 215 8782 WEBINAR ID: 957 9848 4261 THOSE COMMENTING USING A COMPUTER OR SMART PHONE ARE INSTRUCTED TO RAISE A VIRTUAL HAND TO BE RECOGNIZED. PERSONS WISHING TO PROVIDE AUDIENCE COMMENTS BY DIAL -UP PHONE ARE INSTRUCTED TO PRESS *9 TO RAISE A HAND. WHEN PROMPTED, PRESS *6 TO UNMUTE. WHEN YOUR COMMENTS ARE CONCLUDED, PLEASE LEAVE THE ZOOM MEETING AND OBSERVE THE REMAINDER OF THE MEETING ON THE COUNCIL MEETINGS WEB PAGE. REGULAR COUNCIL MEETINGS BEGINNING AT 7:00 PM ARE STREAMED LIVE ON THE COUNCIL MEETING WEBPAGE, COMCAST CHANNEL 21, AND ZIPLY CHANNEL 39. "WE ACKNOWLEDGE THE ORIGINAL INHABITANTS OF THIS PLACE, THE SDOHOBSH (SNOHOMISH) PEOPLE AND THEIR SUCCESSORS THE TULALIP TRIBES, WHO SINCE TIME IMMEMORIAL HAVE HUNTED, FISHED, GATHERED, AND TAKEN CARE OF THESE LANDS. WE RESPECT THEIR SOVEREIGNTY, THEIR RIGHT TO SELF-DETERMINATION, AND WE HONOR THEIR SACRED SPIRITUAL CONNECTION WITH THE LAND AND WATER. - CITY COUNCIL LAND ACKNOWLEDGMENT 1. CALL TO ORDER/FLAG SALUTE 2. LAND ACKNOWLEDGEMENT 3. ROLL CALL 4. PRESENTATIONS 1. 2023 First Quarter Financial Update (20 min) 2. Highway 99 Community Renewal Plan (30 min) 5. APPROVAL OF THE AGENDA 6. AUDIENCE COMMENTS THIS IS AN OPPORTUNITY TO COMMENT REGARDING ANY MATTER NOT LISTED ON THE AGENDA AS CLOSED RECORD REVIEW OR AS A PUBLIC HEARING. SPEAKERS ARE LIMITED TO Edmonds City Council Agenda June 27, 2023 Page 1 THREE MINUTES. PLEASE STATE CLEARLY YOUR NAME AND CITY OF RESIDENCE. 7. RECEIVED FOR FILING 1. Claim for Damages for filing (0 min) 2. Written Public Comments (0 min) 3. Outside Boards and Committee Reports (0 min) 8. APPROVAL OF THE CONSENT AGENDA 1. Approval of Council Committee Minutes 2. Approval of Special Meeting Minutes of June 12, 2023 3. Approval of Special Meeting Minutes of June 14, 2023 4. Approval of Regular Meeting Minutes of June 20, 2023 5. Approval of claim checks. 6. Supplemental Local Agency Consultant Agreement with WSP for Highway 99 Stage 2 7. Supplemental Agreement with SCJ for Highway 99 Stage 2 8. Resolution Establishing Expectations of Expenditures related to the Implementation of the MOU 9. COUNCIL BUSINESS 1. Highway 99 Landmark Site (30 min) 2. Clean Buildings Act - Frances Anderson Center Investment Grade Audit (10 min) 3. Award Construction Contract for Citywide Bicycle Improvements and Elm Way Walkway Projects (15 min) 4. Resolution Increasing Vehicle License Fee - Transportation Benefit District (30 min) 5. Adopting Legislative Blake Fix (10 min) 10. MAYOR'S COMMENTS 11. COUNCIL COMMENTS ADJOURN Edmonds City Council Agenda June 27, 2023 Page 2 4.1 City Council Agenda Item Meeting Date: 06/27/2023 2023 First Quarter Financial Update Staff Lead: Dave Turley Department: Administrative Services Preparer: Dave Turley Background/History First quarter financial update to Council. Staff Recommendation Presentation only, no recommendation. Narrative Tonight's presentation is intended to be a brief financial update to Council on the state of the city's finances through the first quarter of 2023. Attachments: March 2023 Monthly Financial Report Quarterly Report June Packet Pg. 3 I 4.1.a I OF EDP � d 1)7 C. 1 $9v CITY OF EDMONDS MONTHLY BUDGETARY FINANCIAL REPORT MARCH 2O23 Packet Pg. 4 1 I 4.1.a I INVESTMENT PORTFOLIO SUMMARY City of Edmonds Investment Portfolio Detail As of March 31, 2023 Years Agency/ Investment Purchase to Par Market Maturity Coupon Issuer Type Price Maturity Value Value Date Rate FHLMC Bonds 988,678 0.05 1,000,000 997,364 04/20/23 0.38% FHLB Bonds 1,996,590 0.52 2,000,000 1,951,736 10/05/23 0.22% Kent WA Bonds 286,648 0.67 250,000 253,900 12/01/23 5.00% First Financial - ECA CD 2,803,516 0.75 2,803,516 2,803,516 12/28/23 2.08% First Financial - Waterfront Center CD 245,000 0.75 245,000 245,000 12/28/23 1.49% FHLB Bonds 2,004,464 0.80 2,000,000 2,001,640 01/16/24 4.81% FHLB Bonds 954,866 1.03 1,000,000 955,835 04/10/24 0.35% FM Bonds 996,082 1.22 1,000,000 977,695 06/17/24 2.80% FNMA Bonds 992,693 1.26 1,000,000 963,758 07/02/24 1.75% FHLB Bonds 950,774 1.64 1,000,000 941,687 11/18/24 0.90% Spokane County WA Bonds 207,260 1.67 200,000 191,724 12/01/24 2.10% FHLMC Bonds 974,798 1.95 1,000,000 985,593 03/13/25 3.75% FHLB Bonds 969,524 2.33 1,000,000 980,366 07/28/25 3.60% US Treas u ry Note Note 964,597 2.38 1,000,000 979,531 08/15/25 3.13% TOTAL SECURITIES 15,335,490 1.21 15,498,516 15,229,345 Washington State Local Gov't Investment Pool Snohomish County Local Gov't Investment Pool TOTAL PORTFOLIO Issuer Diversification Kent WA,- 2% FHLMC, First 13% Financial - CD, 20% Spokane County WA, 1% FHLB, 45% 7,862,576 7,862,576 Demand 4.74% 43,340,947 43,340,947 Demand 2.07% $ 66,702,040 $ 66,432,869 Cash and Investment Balances Checki ng, (in $ Millions) $5.1 , 7% Note, 1.0 , 2% Bonds, 11.5 , 16% State LGIP, 7.9 , 11% CD's, 3.0 , 4% County LGIP, 43.3 , 60% Q 1 Packet Pg. 5 1 I 4.1.a I INVESTMENT PORTFOLIO SUMMARY Annual Interest Income $1,400, 000 $1 236 875 $1,200,000 1 091 709 $947,931 $950,684 $1,000,000 $882 556 $800,000 $600,000 [it $400,000 $ 200,000 $ 206 ��-iv $- 2018 2019 2020 2021 2022 YTD 2023 2 Packet Pg. 6 4 GENERAL FUND SUMMARY L 000000000000000 000000000 000 000 April 12,000,000 10,000,000 8,000, 000 6,000, 000 4,000, 000 2,000, 000 General Fund Revenues and Expenses (Rolling 24 months) General Fund Revenues General Fund Expenses AV I ter• � July October January April July October January General Fund Tax Revenue (2017 through 2022 Sales Tax Property Tax EMS Tax Other Taxes 2017 2018 2019 2020 2021 2022 General Fund Tax Revenue (2023 YTD) 3,500,000 3,000, 000 2,500,000 $2,551,514 2,000,000A2 781 1 IWO 1,500,000 — 1,000, 000 500,000 $59,032 Sales Tax Property Tax EMS Tax Other Taxes 3 Packet Pg. 7 I 4.1.a I City of Edmonds, WA Monthly Revenue Summary -General Fund 2023 General Fund Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 2,716,321 $ 2,716,321 $ 2,320,252-14.58% February 5,384,133 2,667,812 4,920,100 -8.62% March 8,106,922 2,722,789 8,150,445 0.54% April 11,470,906 3,363,983 May 21,443,623 9,972,717 June 24,353,597 2,909,974 July 27,186,115 2,832,518 August 30,424,939 3,238,824 September 33,093,351 2,668,412 October 37,485,039 4,391,688 November 47,219,142 9,734,102 December 50,352,745 3,133,603 City of Edmonds, WA Monthly Revenue Summary -Real Estate Excise Tax 2023 Real Estate Excise Tax 1 & 2 Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance January $ 342,055 $ 342,055 $ 151,084 -55.83% February 560,818 218,763 270,799 -51.71% March 909,543 348,725 521,829 -42.63% April 1,192,058 282,515 May 1,541,969 349,911 June 1,918,974 377,006 July 2,301,683 382,709 August 2,708,930 407,246 September 3,135,518 426,588 October 3,524,452 388,935 November 3,913,570 389,117 December 4,400,000 486,430 *The monthly budget forecast columns are based on a five-year average. w Packet Pg. 8 1 SALES TAX SUMMARY I 4.1.a I Construction Trade, $416,594 Accommodation, $9,668 _ Clothing and Accessories, CornnVAic Ens, $61,868 Wholesale Trade, — $80,535 12,000,000 10,000, 000 8,000,000 6,000,000 4,000,000 2,000,000 0 Sales Tax Analysis By Category Current Period: March 2023 Year -to -Date Total $2,781,110 Automotive Repair, (Zco iaQ Amusement & Food Stores, $92,443 Manufacturing, $31,661 Others, $60,496 Eating & Drinking, $308,863 Annual Sales Tax Revenue $10,302,518 $7,395,114 $8,406,296 $8,452,715 $8,317,046 27 2,781,110 2017 2018 2019 2020 2021 2022 YTD 2023 5 I Packet Pg. 9 I 4.1.a I City of Edmonds, WA Monthly Revenue Summary -Sales and Use Tax 2023 Sales and Use Tax Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 911,577 $ 911,577 $ 879,231 -3.55% February 1,999,408 1,087,831 1,908,832 -4.53% March 2,854,859 855,451 2,781,110 -2.58% April 3,643,225 788,366 May 4,624,484 981,259 June 5,567,972 943,488 July 6,580,085 1,012,114 August 7,669,335 1,089,249 September 8,683,583 1,014,248 October 9,768,647 1,085,064 November 10,864,900 1,096,253 December 11,900,000 1,035,100 Sales and Use Tax 12,000,000 11,000, 000 10,000,000 9,000,000 8,000,000 7,000,000 40 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC —0-- Current Year Budget — —Prior Year City of Edmonds, WA Monthly Revenue Summary -Real Personal/Property Tax 2023 Real Personal/Property Tax Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 49,915 $ 49,915 $ 26,466-46.98% February 78,108 28,192 147,332 88.63% March 375,054 296,947 824,405 119.81% April 912,236 537,182 May 5,909,096 4,996,860 June 6,029,957 120,861 July 6,148,773 118,816 August 6,198,768 49,995 September 6,260,415 61,647 October 6,466,132 205,717 November 11,227,156 4,761,024 December 11,327,000 99,844 Real PersonaMoperty Tax 12,000,000 11,000, 000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC �Cunrent Yeaz Budget Prior Year *The monthly budget forecast columns are based on a five-year average. 6 Packet Pg. 10 I 4.1.a I City of Edmonds, WA Monthly Revenue Summary -Water Utility Tax 2023 Water Utility Tax Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 86,205 $ 86,205 86,092 -0.13% February 146,468 60,263 143,978 -1.70% March 232,107 85,639 221,845 -4.42% April 288,835 56,728 May 373,578 84,744 June 439,121 65,542 July 541,031 101,910 August 629,368 88,337 September 748,356 118,987 October 835,253 86,898 November 933,046 97,793 December 993,712 60,666 City of Edmonds, WA Monthly Revenue Summary -Sewer Utility Tax 2023 Sewer Utility Tax Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 95,852 $ 95,852 $ 89,935 -6.17% February 174,661 78,808 166,439 -4.71% March 269,654 94,993 256,368 -4.93% April 348,626 78,972 May 444,771 96,145 June 523,850 79,080 July 620,193 96,343 August 699,682 79,489 September 799,189 99,507 October 879,620 80,432 November 976,901 97,281 December 1,055,821 78,920 Sewer Utility Tax 1,wu,vuu 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 - 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -0-- Current Year Budget � Prior Year *The monthly budget forecast columns are based on a five-year average. 7 Packet Pg. 11 I 4.1.a I City of Edmonds, WA Monthly Revenue Summary -Meter Water Sales 2023 Meter Water Sales Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance January $ 898,592 $ 898,592 $ 860,924 -4.19% February 1,526,893 628,301 1,439,675 -5.71% March 2,419,579 892,685 2,218,275 -8.32% April 3,010,919 591,341 May 3,894,276 883,356 June 4,577,455 683,180 July 5,644,291 1,066,835 August 6,565,058 920,767 September 7,805,695 1,240,637 October 8,711,524 905,829 November 9,730,927 1,019,403 December 10,363,937 633,010 City of Edmonds, WA Monthly Revenue Summary -Storm Water Sales 2023 Storm Water Sales Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance January $ 484,003 $ 484,003 $ 417,703 -13.70% February 1,535,452 1,051,449 1,359,827 -11.44% March 2,020,122 484,671 1,794,224 -11.18% April 2,451,545 431,422 May 2,936,868 485,323 June 3,368,111 431,243 July 3,844,019 475,908 August 4,895,662 1,051,643 September 5,380,996 485,335 October 5,812,621 431,625 November 6,298,011 485,390 December 6,714,303 416,292 Storm Water Sales 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Current Year Budget � Prior Year *The monthly budget forecast columns are based on a five-year average. r r6 CL M C C LL L 7 Cy r+ N L_ LL M N O N r_ O Q. d R .v C c LL t C O M N O N t C) R r C d t C� a Packet Pg. 12 I 4.1.a I City of Edmonds, WA Monthly Revenue Summary-Unmeter Sewer Sales 2023 Unmeter Sewer Sales Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 958,430 $ 958,430 $ 900,021 -6.09% February 1,745,646 787,217 1,665,119 -4.61% March 2,695,497 949,850 2,565,291 -4.83% April 3,484,346 788,849 May 4,445,696 961,351 June 5,235,623 789,927 July 6,198,081 962,458 August 6,992,099 794,018 September 7,987,044 994,945 October 8,790,485 803,441 November 9,763,192 972,707 December 10,551,011 787,819 Unmeter Sewer Sales 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 T. JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC � Current Yeaz Budget � Prior Year *The monthly budget forecast columns are based on a five-year average. 9 Packet Pg. 13 ■ 4.1.a I City of Edmonds, WA Monthly Expenditure Report -General Fund 2023 General Fund Cumulative Monthly Budget Forecast Budget Forecast YTD Variance Actuals January $ 5,534,983 $ 5,534,983 $ 4,868,760-12.04% February 9,977,833 4,442,851 10,063,682 0.86% March 14,357,831 4,379,998 14,793,075 3.03% April 18,562,233 4,204,402 May 23,096,754 4,534,521 June 28,326,661 5,229,907 July 32,791,511 4,464,850 August 37,090,589 4,299,078 September 41,872,008 4,781,419 October 46,615,817 4,743,809 November 51,912,151 5,296,334 December 57,687,687 5,775,536 Non -Departmental General Fund 60,000,000 55,000,000 50,000,000 45,000,000 40,000,000 35,000,000 0. 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Current Year Budget Prior Year City of Edmonds, WA Monthly Expenditure Report -Non -Departmental 2023 Cumulative Budget Forecast Monthly Budget Forecast YTD Variance Actuals January $ 2,210,919 $ 2,210,919 $ 1,642,894-25.69% February 3,370,075 1,159,155 3,380,586 0.31% March 4,433,358 1,063,283 4,986,307 12.47% April 5,352,010 918,652 May 6,502,926 1,150,916 June 8,207,872 1,704,946 July 9,220,727 1,012,855 August 10,088,588 867,861 September 11,260,570 1,171,982 October 12,343,718 1,083,149 November 13,681,280 1,337,562 December 15,120,425 1,439,145 *The monthly budget forecast columns are based on a five-year average. 10 Packet Pg. 14 I 4.1.a I City of Edmonds, WA Monthly Expenditure Report -City Council 2023 City Council Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 31,168 $ 31,168 $ 33,649 7.96% February 64,726 33,558 71,252 10.08% March 102,768 38,042 108,460 5.54% April 139,148 36,380 May 185,610 46,462 June 234,717 49,107 July 271,512 36,795 August 321,665 50,154 September 360,348 38,683 October 393,400 33,052 November 434,929 41,529 December 480,256 45,327 Office of Mayor City Council 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC --0--Current Year Budget � Prior Year City of Edmonds, WA Monthly Expenditure Report -Office of Mayor 2023 Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance January $ 40,530 $ 40,530 $ 32,343 -20.20% February 82,920 42,390 63,133 -23.86% March 123,864 40,944 101,671 -17.92% April 165,624 41,760 May 206,480 40,855 June 246,845 40,365 July 288,014 41,169 August 328,829 40,815 September 369,857 41,028 October 410,050 40,193 November 452,572 42,522 December 495,273 42,701 Office of Mayor 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -"-Current Year Budget �PriorYear *The monthly budget forecast columns are based on a five-year average. 11 Packet Pg. 15 I 4.1.a I City of Edmonds, WA Monthly Expenditure Report -Human Resources 2023 Human Resources Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 111,879 $ 111,879 $ 93,116-16.77% February 212,590 100,710 164,590-22.58% March 304,874 92,285 230,737-24.32% April 402,099 97,225 May 499,035 96,936 June 630,337 131,302 July 716,800 86,464 August 811,438 94,638 September 913,015 101,577 October 1,008,222 95,207 November 1,118,413 110,191 December 1,254,947 136,534 Human Resources 1,SUU,000 .00 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 '000- 500,000 400,000 300,000 200,000 100,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC +Current Year Budget Prior Year City of Edmonds, WA Monthly Expenditure Report -Municipal Court 2023 Municipal Court Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 107,783 $ 107,783 $ 114,975 6.67% February 217,016 109,233 231,321 6.59% March 329,502 112,486 352,625 7.02% April 443,331 113,829 May 565,420 122,088 June 677,638 112,218 July 792,551 114,913 August 920,812 128,261 September 1,038,313 117,501 October 1,160,412 122,099 November 1,306,850 146,438 December 1,451,763 144,913 *The monthly budget forecast columns are based on a five-year average. 12 Packet Pg. 16 I 4.1.a I City of Edmonds, WA Monthly Expenditure Report -Community Services/Economic Development 2023 Community Services/Economic Development Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 75,636 $ 75,636 $ 84,200 11.32% February 158,776 83,140 172,586 8.70% March 244,264 85,488 263,059 7.69% April 326,040 81,776 May 410,629 84,589 June 496,694 86,064 July 586,721 90,027 August 693,939 107,218 September 794,170 100,231 October 898,567 104,397 November 1,032,532 133,965 December 1,199,451 166,919 *The monthly budget forecast columns are based on a five-year average. 13 Packet Pg. 17 I 4.1.a I City of Edmonds, WA Monthly Expenditure Report - Fund 512 - Technology Rental Fund 2023 Fund 512 - Technology Rental Fund Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals % January $ 208,626 $ 208,626 $ 355,645 70.47% February 345,734 137,108 530,347 53.40% March 533,426 187,692 683,467 28.13% April 608,285 74,858 May 714,977 106,692 June 836,660 121,683 July 927,272 90,612 August 1,062,420 135,149 September 1,197,885 135,465 October 1,349,945 152,060 November 1,449,758 99,813 December 1,685,027 235,269 City of Edmonds, WA Monthly Expenditure Report -Administrative Services 2023 Administrative Services Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance % January $ 235,621 $ 235,621 $ 253,437 7.56% February 400,584 164,963 571,249 42.60% March 566,179 165,595 774,413 36.78% April 735,689 169,510 May 904,213 168,524 June 1,133,897 229,684 July 1,324,708 190,811 August 1,494,358 169,650 September 1,664,937 170,579 October 1,843,073 178,136 November 2,043,094 200,022 December 2,217,666 174,572 *The monthly budget forecast columns are based on a five-year average. 14 Packet Pg. 18 I 4.1.a I City of Edmonds, WA Monthly Expenditure Report -City Attorney 2023 City Attorney Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 96,815 $ 96,815 $ 24,570-74.62% February 193,630 96,815 109,813-43.29% March 290,445 96,815 186,270-35.87% April 387,260 96,815 May 484,075 96,815 June 580,890 96,815 July 677,705 96,815 August 774,520 96,815 September 871,335 96,815 October 968,150 96,815 November 1,064,965 96,815 December 1,161,780 96,815 Police City Attorney 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC --0-- Current Year Budget � Prior Year City of Edmonds, WA Monthly Expenditure Report -Police 2023 Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 1,163,207 $ 1,163,207 $ 1,041,369-10.47% February 2,325,164 1,161,957 2,119,852 -8.83% March 3,539,820 1,214,656 3,173,554-10.35% April 4,711,460 1,171, 639 May 5,925,620 1,214,160 June 7,207,679 1,282,059 July 8,426,096 1,218,417 August 9,573,799 1,147,703 September 10,782,176 1,208,377 October 12,034,062 1,251,887 November 13,502,037 1,467,974 December 14,981,027 1,478,990 Police 15,000,000 14,000,000 13,000,000 12,000,000 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC � Current Year Budget �Prior Year *The monthly budget forecast columns are based on a five-year average. 15 Packet Pg. 19 I 4.1.a I City of Edmonds, WA Monthly Expenditure Report -Development Services 2023 Planning & Development Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 376,373 $ 376,373 $ 286,492-23.88% February 772,766 396,393 595,086-22.99% March 1,153,437 380,671 913,919-20.77% April 1,554,903 401,467 May 1,949,577 394,674 June 2,342,019 392,442 July 2,770,412 428,393 August 3,172,433 402,021 September 3,591,554 419,121 October 4,008,358 416,804 November 4,457,452 449,094 December 4,976,888 519,436 City of Edmonds, WA Monthly Expenditure Report -Parks & Recreation 2023 Parks & Recreation Cumulative Monthly Budget Forecast Budget Forecast YTD Actuals Variance January $ 419,452 $ 419,452 $ 589,720 40.59% February 878,149 458,697 958,125 9.11% March 1,336,929 458,780 1,386,849 3.73% April 1,796,458 459,529 May 2,266,262 469,804 June 2,764,885 498,623 July 3,310,375 545,491 August 3,875,366 564,991 September 4,483,687 608,320 October 4,983,396 499,710 November 5,493,514 510,117 December 6,022,817 529,303 *The monthly budget forecast columns are based on a five-year average. 16 Packet Pg. 20 I 4.1.a I City of Edmonds, WA Monthly Expenditure Report - Fund 016 - Building Maintenance Fund 2023 Fund 016 - Building Maintenance Fund Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 106,250 $ 106,250 $ 81,158-23.62% February 212,500 106,250 97,897-53.93% March 318,750 106,250 100,936-68.33% April 425,000 106,250 May 531,250 106,250 June 637,500 106,250 July 743,750 106,250 August 850,000 106,250 September 956,250 106,250 October 1,062,500 106,250 November 1,168,750 106,250 December 1,275,000 106,250 Fund 016 - Building Maintenance Fund 1,300,000 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC � Current Year Budget Prior Year City ofEdmonds, WA Monthly Expenditure Report -Facilities Maintenance 2023 Facilities Maintenance Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 229,986 $ 229,986 $ 335,018 45.67% February 525,669 295,683 935,298 77.93% March 832,538 306,869 1,264,752 51.92% April 1,125,114 292,577 May 1,391,198 266,084 June 1,610,195 218,997 July 1,876,146 265,951 August 2,221,436 345,290 September 2,620,782 399,346 October 3,065,186 444,404 November 3,431,614 366,428 December 4,013,010 581,396 Facilities Maintenance 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC � Current Year Budget � Prior Year *The monthly budget forecast columns are based on a five-year average. 17 Packet Pg. 21 I 4.1.a I City of Edmonds, WA Monthly Expenditure Report -Engineering 2023 Engineering Cumulative Monthly YTD Variance Budget Forecast Budget Forecast Actuals January $ 252,507 $ 252,507 $ 261,418 3.53% February 506,039 253,532 531,670 5.07% March 764,005 257,966 807,168 5.65% April 1,025, 281 261,275 May 1,311,065 285,784 June 1,574,953 263,888 July 1,849,982 275,029 August 2,119,149 269,167 September 2,379,906 260,757 October 2,645,006 265,100 November 2,934,322 289,316 December 3,224,439 290,117 Engine a ring 3,500,000 31000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 JAN FEB MAR APR MAY .TUN JUL AUG SEP OCT NOV DEC --*--- Current Yeaz Budget Prior Yew *The monthly budget forecast columns are based on a five-year average. d r M Q tC U C t9 C LL N tC 3 CY N L LL M N O N r_ O O_ d fC C R C LL t C O 2 M N O N L V L CM G C d t V R Q 18 Packet Pg. 22 Page 1 of 1 C r1Y OF EDMONDS REVENUES BY FUND - SUMMARY Fund 2023 Adopted 3/31/2022 3/31/2023 Amount No. Title Budget Revenues Revenues Remaining %Received 001 GENERAL FUND $ 50,352,745 $ 7,290,787 $ 8,150,445 $ 42,202,300 160/c 009 LEOFF-MEDICAL INS. RESERVE 225,000 - - 225,000 00/c Ol l RISK MANAGEMENT RESERVE FUND - - 00/c 014 HISTORIC PRESERVATION GIFT FUND - - - 00/c 016 BUILDING MAINTENANCE FUND 17,480 15,259 23,820 (6,340) 1360/( 017 MARSH RESTORATION & PRESERVATION FUND - - - - 00/c 018 EDMONDS HOMELESSNESS RESPONSE FUND - - - 00/, �+ 104 DRUG ENFORCEMENT FUND 167,650 578 59 167,591 00/, Q. Ill STREET FUND 1,815,410 321,969 328,654 1,486,756 180/( :) c0 112 COMBINED STREET CONST/IMPROVE 11,084,065 1,084,583 1,830,889 9,253,176 C 117 MUNICIPAL ARTS ACQUIS. FUND 98,098 77,198 9,261 88,837 90/( C 118 MEMORIAL STREET TREE - - - - 00/c LL 120 HOTEL/MOTEL TAX REVENUE FUND 84,400 19,965 22,971 61,429 L 270/, 4) 121 EMPLOYEE PARKING PERMIT FUND 38,960 8,246 10,367 28,593 7 270/cOr 122 YOUTH SCHOLARSHIP FUND 1,660 110 13 1,647 10/( N 123 TOURISM PROMOTIONAL FUND/ARTS 30,440 7,199 7,731 22,709 250/c LL 125 REAL ESTATE EXCISE TAX 2 2,320,090 307,137 263,513 2,056,577 110/, M N 126 REAL ESTATE EXCISE TAX 1 2,302,980 302,186 264,405 2,038,575 11% N 127 GIFT S CATALOG FUND 135,340 65,930 33,915 101,425 250/c r- 130 CEMETERY MAINTENANCE/IMPROVEMT 150,960 51,737 50,994 99,966 340/( 0 d 136 PARKSTRUST FUND 5,460 1,294 (7,497) 12,957 -1370/c 137 CEMETERY MAINTENANCE TRUST FD 51,500 14,031 6,606 44,894 130/( .� C� 138 SISTER CITY COMMISSION 10,430 119 17 10,413 00/, 140 BUSINESS IMPROVEMENT DISTRICT 88,645 37,412 38,089 50,556 430/c LL 141 AFFORDABLE AND SUPPORTIVE HOUSINGFUND 65,000 23,034 21,312 43,688 330/, 2+ t 142 EDMONDS RESCUE PLAN FUND 1,249,000 - 1,010 1,247,990 00/c O 143 TREE FUND 215,100 157 198 214,902 00/, 2 231 2012 LT GO DEBT SERVICE FUND 309,800 - - 309,800 M 00/( 04 0 332 PARKS CAPITAL CONSTRUCTION FUND 2,713,902 808,208 158,915 2,554,987 60/c N t 411 COMBINED UTILITY OPERATION - 46,790 37,625 (37,625) 00/c i 421 WATER UTILITYFUND 11,950,114 2,553,715 2,586,131 9,363,983 220/, 2 422 STORM UTILITY FUND 9,020,452 1,984,530 2,278,818 6,741,634 250/, 423 SEWER/WWTP UTILITY FUND 15,898,844 5,144,772 4,869,903 11,028,941 310/c d E 424 BOND RESERVE FUND 1,991,860 3 3,093 1,988,767 00/c V to 511 EQUIPMENT RENTAL FUND 4,188,740 463,683 560,274 3,628,466 130/, Q 512 TECHNOLOGY RENTAL FUND 1,481,194 291,812 352,483 1,128,711 240/( $ 118,065,319 $ 20,922,442 $ 21,904,016 $ 96,161,303 190/1 19 Packet Pg. 23 I 4.1.a I Page 1 of 1 CITY OF MMO NDS EXPENDITURES BY FUND - SUMMARY Fund 2023 Adopted 3/31/2022 3/31/2023 Amount No. Title Budget Expenditures Eipenditures Remaining %Spent 001 GENERAL FUND $ 57,687,687 $ 11,949,976 $ 14,793,075 $ 42,894,612 260/c 009 LEOFF-MEDICAL INS. RESERVE 367,140 88,086 102,272 264,868 280/c O11 RISK MANANGEMENT RESERVE FUND 25,000 - 25,000 0% 014 HISTORIC PRESERVATION GIFT FUND 5,900 - - 5,900 0% 016 BUILDING MAINTENANCE FUND 1,275,000 16,522 100,936 1,174,064 80/c 017 MARSH RESTORATION & PRESERVATION FUND - - - - 0% 018 EDMONDS HOMELESSNESS RESPONSE FUND - - - 0% .4; M 019 EDMONDS OPIOID RESPONSE FUND - - - 00/, a CL 104 DRUG ENFORCEMENT FUND 45,800 - - 45,800 0% :) 111 STREET FUND 2,350,969 612,607 965,565 1,385,404 C 112 COMBINED STREET CONST/IMPROVE 9,990,960 412,691 1,421,377 8,569,583 140/c C 117 MUNICIPAL ARTS ACQUIS. FUND 207,380 12,908 5,665 201,715 30/c IL 118 MEMORIAL STREET TREE - - - - L 00/, 120 HOTEL/MOTEL TAX REVENUE FUND 95,400 8,555 670 94,730 7 1%Cy 121 EMPLOYEE PARKING PERMIT FUND 26,880 - - 26,880 00/c N 122 YOUTH SCHOLARSHIP FUND 3,000 - - 3,000 00/c LL 123 TOURISM PROMOTIONAL FUND/ARTS 28,500 - 780 27,720 30/c M 125 REAL ESTATE EXCISE TAX 2 4,062,898 423,951 240,110 3,822,788 60/c N 126 REAL ESTATE EXCISE TAX 1 1,768,812 133,238 66,831 1,701,981 40/c r 127 GIFTS CATALOG FUND 497,598 2,462 27,197 470,401 50/c Q. d 130 CEMETERY MAINTENANCE/IMPROVEMT 249,413 45,724 73,531 175,882 29% 136 PARKS TRUST FUND 43,842 - - 43,842 00/c •V 137 CEMETERY MAINTENANCE TRUST FUND 50,000 - - 50,000 00/c cc to C 138 SISTER CITY COMMISSION 11,900 - 219 11,681 20/c LL 140 BUSINESS IMPROVEMENT DISTRICT 88,575 11,101 10,176 78,399 110/c 142 EDMONDS RESCUE PLAN FUND 1,249,000 232,175 663,059 585,941 r� 530/c C 143 TREE FUND 239,800 - - 239,800 00/c 231 2012 LT GO DEBT SERVICE FUND 309,800 - - 309,800 M 0% c 332 PARKS CAPITAL CONSTRUCTION FUND 2,255,647 1,630,281 568,994 1,686,653 250/c t 421 WATER UTILITY FUND 11,635,050 1,422,285 1,896,223 9,738,827 160/c R 422 STORM UTILITY FUND 8,086,963 1,143,115 1,127,379 6,959,584 140/, 2 423 SEWER/WWTP UTILITY FUND 16,031,246 3,720,393 3,369,420 12,661,826 210/c C d 424 BOND RESERVE FUND 1,989,820 - - 1,989,820 0% E z 511 EQUIPMENT RENTAL FUND 4,367,218 346,163 829,288 3,537,930 190/c 512 TECHNOLOGY RENTAL FUND 1,685,027 502,978 683,467 1,001,560 r� 410/, Q 617 FIREMEN'S PENSION FUND - - - - 00/c $ 126,732,225 $ 22,715,212 $ 26,946,235 $ 99,785,990 21 °% 20 Packet Pg. 24 4.1.a Page 1 of 3 C ITY O F EDMO NDS REVENUES - GENERAL FUND 2023 Adopted 3/31/2022 3/31/2023 Amount Title Budget Revenues Revenues Remaining %Received TAXES: 1 REAL PERSONAL / PROPERTY TAX 2 EMSPROPERTY TAX 3 VOTED PROPERTY TAX 4 LOCAL RETAIL SALES/USE TAX 1 5 NATURAL GAS USE TAX 6 1/10 SALES TAX LOCAL CRIM JUST 7 ELECTRIC UTILITY TAX 8 GASUTILITY TAX 9 SOLID WASTE UTILITY TAX 10 WATERUTILITY TAX 11 SEWERUTILITYTAX 12 SI'ORMWATERUTILITY TAX 13 T.V. CABLE UTILITY TAX 14 TELEPHONE UTILITY TAX 15 PULLTABSTAX 16 AMUSEMENT GAMES 17 LEASEHOLD EXCISE TAX LIC INS ES AND PERM TS : 18 FIRE PERMITS -SPECIAL USE 19 POLICE - FINGERPRINTING 20 VENDING MACHINE/CONCESSION 21 FRANCHISE AGREEMENT -COMCAST 22 FRANCHISE FEE-EDUCATION/GOVERNMENT 23 FRANCHISE AGREEMENT-ZIPLY FIBER 24 OLYMPIC VIEW WATER DISTRICT FRANCHISE 25 GENERAL BUSINESS LICENSE 26 DEV SERV PERMIT SURCHARGE 27 RIGHT OF WAY FRANCHISE FEE 28 BUILDING PERMIT S 29 FIRE PERMIT 30 ENGINEERING PERMIT 31 ANIMAL LICENSES 32 STREET AND CURB PERMIT 33 STREET AND CURB PERMIT W/LEASEHOLD TAX 34 OTRNON-BUSLIC/PERMITS 35 SPECIAL EVENT REVIEW INTERGOVERNMENTAL: 36 FEDERAL GRANTS - BUDGET ONLY 37 DOJ 15-0404-0-1-754 - BULLET PROOF VEST 38 HIGH VISIBILITY ENFORCEMENT 39 CORONAVIRUS RELIEF FUND 40 STATE GRANTS- BUDGET ONLY 41 PUD PRIVILEDGE TAX 42 TRIAL COURT IMPROVEMENT 43 CJ - POPULATION 44 CRIMINAL JUSTICE -SPECIAL PROGRAMS 45 MARIJUANA EXCISE TAX DISTRIBUTION 46 DUI - CITIES 47 LIQUOR EXCISE TAX 48 LIQUOR BOARD PROFITS 49 MISCELLANEOUS INTERLOCAL REVENUE 50 FIRST RESPONDERS FLEX FUND 51 DISCOVERY PROGRAMS TECHNOLOGY ACQ. $ 11,327,000 $ 287,837 $ 824,405 $ 10,502,595 70/( 4,578,000 114,531 330,582 4,247,418 70/( 500 27 4 496 10/( 11,900,000 2,666,259 2,781,110 9,118,890 230/( 7,600 4,804 - 7,600 00/( 1,150,000 249,575 259,807 890,193 230/c 1,900,000 534,798 542,135 1,357,865 290/( 845,000 305,138 352,921 492,079 420/( 384,000 94,158 71,026 312,974 180/( 1,000,234 212,668 221,845 778,389 220/( 942,960 160,357 256,368 686,592 270/( 621,458 174,064 179,423 442,035 290/( 850,000 203,217 204,076 645,924 240/( 773,000 130,244 92,079 680,921 120/( 80,200 18,591 22,264 57,936 280/c 350 - - 350 00/( 326,000 77,158.4 78,017.5 247,982 240/( 36,686,302 5,233,427 6,216,061 30,470,241 170% 250 50 50 200 200/( 700 20 225 475 320/( 94,500 14,725 22,189 72,311 230/( 702,700 179,444 171,516 531,184 240/( 41,000 9,105 8,478 32,522 210/( 100,600 12,550 9,373 91,227 90/( 450,000 84,298 101,463 348,537 230/( 250,000 64,396 66,225 183,775 260/( 80,000 24,775 22,920 57,080 290/( 30,000 30,173 13,962 16,038 470/( 750,600 222,875 143,042 607,558 190/( - - 600 (600) 00/( - - 7,090 (7,090) 00/( 24,000 7,135 9,559 14,441 400/( 75,000 12,958 18,340 56,660 240/( - - 293 (293) 00/( 20,000 - 4,194 15,806 210/( - 3,754 251 (251) 00/( 2,619,350 666,258 599,769 2,019,581 237% 166,309 - - 166,309 00/( 9,000 5,237 - 9,000 00/( 11,100 718 3,845 7,255 350/( 1,494,875 - - 1,494,875 00/( 244,645 - - 244,645 00/( 210,500 - - 210,500 00/( 16,740 5,388 5,338 11,402 320/( 13,070 3,571 3,758 9,312 290/( 50,600 12,693 13,294 37,306 260/( 125,000 24,665 26,513 98,487 210/( 4,500 1,793 53 4,448 10/( 325,000 72,230 71,223 253,777 220/( 343,200 83,190 82,149 261,051 240/( - - 500 (500) 00/( 1,000 - - 1,000 00/( 550 - - 550 00/( 3,016,089 209,486 206,674 2,809,415 70/( Q 2022 Local Retail Sa/esiUse Tax revenues are $114,851 higher than 2021 revenues. Please also see pages pages 5 & 6. 21 1 Packet Pg. 25 1 4.1.a Page 2 of 3 CITY OF EDMO NDS REVENUES - GENERAL FUND 2023 Adopted 3/31/2022 3/31/2023 Amount Title Budget Revenues Revenues Remaining %Received CHARGES FOR GOODS AND SERVICES: 1 RECORD/LEGAL INSTRUMENTS 2 ATM SURCHARGE FEES 3 CREDIT CARD FEES 4 COURT RECORD SERVICES 5 D/M COURT REC SER 6 WARRANT PREPARATION FEE 7 IT TIME PAY FEE 8 MUNIC.-DIST. COURT CURR EXPEN 9 CLERKS TIME FOR SALE OF PARKING PERMITS 10 PHOTOCOPIES 11 POLICE DISCLOSURE REQUESTS 12 ENGINEERING FEES AND CHARGES 13 ELECTION CANDIDATE FILINGFEES 14 CUSTODIAL SERVICES(SNO-ISLE) 15 PASSPORTS AND NATURALIZATION FEES 16 POLICE SERVICES SPECIAL EVENTS 17 CAMPUS SAFETY-EDM. SCH. DIST. 18 WOODWAY-LAW PROTECTION 19 MISCELLANEOUS POLICE SERVICES 20 FIRE DISTRICT #1 STATION BILLINGS 21 LEGAL SERVICES 22 ADULT PROBATION SERVICE CHARGE 23 BOOKING FEES 24 FIRE CONSTRUCTION INSPECTION FEES 25 EMERGENCY SERVICE FEES 26 EMS TRANSPORT USER FEE 27 FLEX FUEL PAYMENTS FROM STATIONS 28 ZONING/SUBDIVISION FEE 29 BUILDING PLAN REVIEW AND INSPECTION 30 FIRE PLAN REVIEW 31 PLANNING REVIEW AND INSPECTION 32 S.E.P.A. REVIEW 33 ENGINEERINGPLAN REVIEW AND INSPECTION 34 CRITICAL AREA STUDY 35 GYM AND WEI MTROOM FEES 36 PROGRAM FEES 37 HOLIDAY MARKET REGISTRATION FEES 38 UPTOWN EVENING MARKET FEES 39 WINTERMARKET FEES 40 BIRD FEST REGISTRATION FEES 41 INTERFUND REIMBURSEMENT -CONTRACT SVCS $ 3,000 $ 1,897 $ 924 $ 2,076 310/( 600 44 45 555 80/( 6,000 441 - 6,000 00/( 150 1 - 150 00/( 300 - - 300 00/( 4,000 - - 4,000 00/( 1,000 49 46 954 50 50 37 77 (27) 1540/( 25,000 - - 25,000 00/( 100 51 7 93 70/( 1,000 - - 1,000 00/( 190,000 82,228 26,678 163,322 140/( 1,400 2,885 - 1,400 00/( 100,000 24,410 12,805 87,195 130/( 5,000 1,400 18,025 (13,025) 3610/( 30,000 - - 30,000 00/( 14,000 - - 14,000 00/( 210,970 52,742 113,713 97,258 540/( - 13 20 (20) 00/( 67,000 15,373 19,794 47,206 300/( 1,050 126 - 1,050 00/( 38,000 4,560 2,830 35,170 70/( 3,000 103 53 2,947 20/( 10,000 7,963 5,793 4,207 580/( 3,500 177 200 3,300 60/( 1,077,500 238,403 - 1,077,500 00/( 5,000 1,164 754 4,246 1501( 65,600 24,928 17,062 48,539 260/( 425,000 57,962 140,295 284,705 330/( 4,000 4,234 5,574 (1,574) 1390/( 500 110 2,844 (2,344) 5690/( 3,000 2,220 740 2,260 250/( - - 756 (756) 00/( 14,000 5,370 4,686 9,314 330/( 13,000 231 3,172 9,828 240/( 990,959 174,034 218,632 772,327 22°/ 5,000 - 455 4,545 90/( 5,000 - - 5,000 00/( 5,000 6,880 8,805 (3,805) 1760/( 1,000 - - 1,000 00/( 3,427,765 294,624 302,153 3,125,612 90/( 6,757,444 1,004,658 906,937 5,850,507 130% CL C to C LL to 7 Or N L LL M N O N O C. d R C cc C LL z C O 2 M N O N t C) L C� G Cd G t a 22 Packet Pg. 26 4.1.a Page 3 of 3 C ITY O F EDMO NDS REVENUES - GENERAL FUND 2023 Adopted 3/31/2022 3/31/2023 Amount Title Budget Revenues Revenues Remaining %Received FINES AND PENALTIES: 1 PROOF OF VEHICLE INS PENALTY 2 TRAFFIC INFRACTION PENALTIES 3 NC TRAFFIC INFRACTION 4 CRT COST FEE CODE LEG ASSESSMENT (LGA) 5 CURRENT TRAFFIC INFRACTIONS 6 NON -TRAFFIC INFRACTION PENALTIES 7 OTHERINFRACTIONS'04 8 PARKING INFRACTION PENALTIES 9 PARK/INDDISZONE 10 DWI PENALTIES 11 DUI - DP ACCT 12 CRIM CNV FEE DUI 13 DUI - DP FEE 14 CRIMINAL TRAFFIC MISDEMEANOR 8/03 15 CRIMINAL CONVICTION FEE CT 16 CRIM CONV FEE CT 17 OTHER NON-T RAF MISDEMEANOR PEN 18 OTHER NON TRAFFIC MISD. 8/03 19 COURT DV PENALTY ASSESSMENT 20 CRIMINAL CONVICTION FEE CN 21 CRIM CONV FEE CN 22 PUBLIC DEFENSE RECOUPMENT 23 BANK CHARGE FOR CONY. DEFENDANT 24 COURT COST RECOUPMENT 25 BUS. LICENSE PERMIT PENALTY 26 MISC FINES AND PENALTIES MISCELLANEOUS: 27 INVESTMENT INTEREST 28 INTEREST ON COUNTY TAXES 29 INTEREST - COURT COLLECTIONS 30 LOAN INTEREST 31 SPACE/FACILITIESRENTALS 32 BRACKET ROOM RENTAL 33 LEASESLONG-TERM 34 DONATION/CONTRIBUTION 35 PARKSDONATIONS 36 BIRD FEST CONTRIBUTIONS 37 POLICE CONTRIBUTIONS FROM PRIV SOURCES 38 SALE OF JUNK/SALVAGE 39 SALES OF UNCLAIM PROPERTY 40 CONFISCATED AND FORFEITED PROPERTY 41 OTHER JUDGEMENT/SETTLEMENT 42 POLICE JUDGMENT SiRESTITUTION 43 CASHIER'S OVERAGESISHORT AGES 44 OTHER MISC REVENUES 45 SMALL OVERPAYMENT 46 NSF FEES - PARKS & REC 47 NSF FEES - MUNICIPAL COURT 48 L&I STAY AT WORK PROGRAM 49 US BANK REBATE TOTAL GENERAL FUND REVENUE $ 2,000 $ 469 $ 710 $ 1,290 350/( 130,000 15,805 27,099 102,901 210/( 18,000 1,180 773 17,227 40/( 10,000 963 1,053 8,947 110/( - - 23,882 (23,882) 00/( 1,000 - 4,300 (3,300) 4300/( 1,500 218 819 681 5501( 125,000 4,135 2,110 122,890 20/( 2,000 72 239 1,761 120/( 7,000 990 1,083 5,917 1501( 300 26 1 299 00/( 100 9 - 100 00/( 1,500 505 484 1,016 320/( 25,000 2,971 2,571 22,429 100/( 2,000 475 442 1,558 220/( 700 34 - 700 00/( 100 - 100 0 1000/( 12,000 636 108 11,892 10/( 800 12 100 700 130/( 1,000 81 48 952 501( 200 - - 200 00/( 6,000 933 894 5,106 1501( 4,000 790 1,709 2,291 430/( 1,000 49 368 632 370/( 1,000 - - 1,000 00/( 150 - - 150 00/( 352,350 30,353 68,894 283,456 200% 321,240 74,203 6,321 314,919 20/( 10,960 1,116 9,932 1,028 910/( 12,180 1,875 793 11,387 70/( 12,080 - - 12,080 00/( 175,000 11,244 13,919 161,081 80/( 2,100 - - 2,100 00/( 210,000 51,562 56,584 153,416 270/( 1,500 76 83 1,417 60/( 3,500 2,300 500 3,000 140/( 1,500 - - 1,500 00/( 5,000 249 - 5,000 00/( 300 - 565 (265) 1880/( 3,800 996 1,504 2,296 400/( 2,000 - - 2,000 00/( 146,000 - 49,007 96,993 340/( 200 14 47 153 240/( - 20 10 (10) 00 5,000 773 1,240 3,760 250/( 100 20 1 99 10/( 100 - - 100 00/( 150 - 4 146 30/( - - 8,702 (8,702) 00/( 8,500 2,158 2,899 5,601 34°/ 921,210 146,605 152,110 769,100 170% $ 50,352,745 $ 7,290,787 $ 8,150,445 $ 42,202,300 160% Q 23 Packet Pg. 27 I 4.1.a I Page 1 of 6 CITY OF EDMO NDS EXPENDITURES BY FUND - DETAIL 2023 Adopted 3/31/2022 3/31/2023 Amount Title Budget Expenditures Expenditures Remaining %Spent GENERAL FUND EXPENDITURES (001) 1 SALARIES AND WAGES $ 21,585,702 $ 4,326,088 $ 5,394,677 $ 16,191,025 250/ 2 OVERTIME 649,080 302,420 194,698 454,382 300/ 3 HOLIDAY BUY BACK 294,001 8,212 5,674 288,327 20/ 4 BENEFITS 7,619,904 1,616,010 1,894,915 5,724,989 250/ 5 UNIFORMS 130,851 13,344 36,300 94,551 280/ 6 PENSION AND DISABILITY PAYMENTS 165,023 11,825 22,294 142,729 140/ 7 SUPPLIES 759,025 80,236 95,049 663,976 130/ 8 SMALL EQUIPMENT 302,791 29,359 49,389 253,402 160/ 9 PROFESSIONAL SERVICES 18,093,206 3,942,748 4,707,739 13,385,467 260/ 10 COMMUNICATIONS 241,295 30,315 41,904 199,391 170/ 11 TRAVEL 74,795 4,397 14,869 59,926 200/ 12 EXCISE TAXES 16,500 7,774 7,407 9,093 450/ 13 RENTAL/LEASE 2,780,344 510,493 659,041 2,121,303 240/ 14INSURANCE 597,722 503,160 625,650 (27,928) 1050/ 15 UTILITIES 663,800 157,296 153,036 510,764 230/ 16 REPAIRS& MAINTENANCE 593,900 179,938 336,715 257,185 570/ 17 MISCELLANEOUS 652,593 176,364 214,994 437,599 330/ 18 INTERGOVERNMENTAL PAYMENTS 50,000 50,000 50,000 - 1000/ 19 INTERFUND SUBSIDIES 863,000 - - 863,000 00/ 20 BUILDINGS - 284,460 (284,460) 00/ 21 MACHINERY/EQUIPMENT 430,000 4,264 425,736 10/ 22 CONSTRUCT IONS PROJECTS 800,565 - 800,565 00/ 23 GENERAL OBLIGATION BOND PRINCIPAL 191,620 191,620 00/ 24 INTEREST ON LONG-TERM EXTERNAL DEBT 131,470 131,470 00/ 25 OTHER INTEREST & DEBT SERVICE COSTS 500 - - 500 00/ 77,687,687 11,949,976 14,793,075 42,894,612 260/ LEO FF-MEDIC AL INS. RESERVE(009) 26 BENEFITS $ 206,650 $ 59,723 $ 72,693 $ 133,957 350/ 27 PENSION AND DISABILITY PAYMENTS 152,990 21,363 29,579 123,411 190/ 28 PROFESSIONAL SERVICES 7,000 7,000 - 7,000 00/ 29 MISCELLANEOUS 500 - - 500 00/ 367,140 88,086 S 102,272 264,868 287/ RISK MANAG04ENT RESERVE FUND (011) 30 MISCELLANEOUS $ 25,000 $ - $ $ 25,000 00/ 25,000 25,000 0°/ HISTORIC PRESERVATION GIFT FUND (014) 31 SUPPLIES $ 100 $ $ $ 100 00/ 32 PROFESSIONAL SERVICES 200 200 00/ 33 MISCELLANEOUS 5,600 5,600 00/ 5,900 5,900 00/ BUILDING MAINTENANCEFUND (016) 34 PROFESSIONAL SERVICES $ 121,500 $ 450 $ $ 121,500 00/ 35 REPAIR&MAINTENANCE 1,153,500 16,072 81,158 1,072,342 70/ 36 BUILDINGS - - 19,778 (19,778) 00/ 1,275,000 16,522 100,936 1,174,064 80/ DRUG INFO RCEMFNTFUND (104) 37 PROFESSIONAL SERVICES $ 45,000 $ - $ $ 45,000 00/ 38 REPAIR/MAINT 800 800 00/ 45,800 45,800 00/ M CL cc U C ca C IL d to 7 CI N L_ LL M N 0 N O O. d lY R C to C iL t C O 2 M N 0 N t L R r.� C d E t t� to r� Q 24 Packet Pg. 28 I 4.1.a I Page 2 of 6 CITY OF EDMO NDS EXPENDITURES BY FUND - DETAIL 2023 Adopted 3/31/2022 3/31/2023 Amount Title Budget Expenditures Expenditures Remaining % Spent STREETFUND (111) 1 SALARIES AND WAGES $ 828,313 $ 175,741 $ 366,360 $ 461,953 449 2 OVERTIME 38,400 8,784 10,514 27,886 279 3 BENEFITS 377,585 86,684 129,613 247,972 340 4 UNIFORMS 6,000 3,107 3,070 2,930 519 5 SUPPLIES 263,000 15,428 22,695 240,305 99 6 SMALL EQUIPMENT 20,000 587 552 19,448 39 7 PROFESSIONAL SERVICES 23,210 4,457 4,874 18,336 219 8 COMMUNICATIONS 4,500 1,284 1,710 2,790 389 9 TRAVEL 1,000 - - 1,000 09 10 RENTAL/LEASE 304,730 72,120 75,724 229,006 259 11 INSURANCE 120,821 184,111 126,467 (5,646) 1059 12 UTILITIES 273,730 45,731 47,742 225,988 179 13 REPAIRS & MAINTENANCE 52,000 4,212 4,580 47,420 99 14 MISCELLANEOUS 8,000 10,360 6,310 1,690 799 15 BUILDINGS 25,000 - - 25,000 09 16 OTHERIMPROVEMENTS - 165,353 (165,353) 09 17 GENERAL OBLIGATION BOND PRINCIPAL 4,380 - 4,380 09 18 INTEREST 300 - 300 09 $ 2,350,969 $ 612,607 $ 965,565 $ 1,385,404 419 COMBINED STREETCONST[VvIPROVE(112) 19 PROFESSIONAL SERVICES $ 3,674,780 $ 109,042 $ 178,619 $ 3,496,161 59 20 INTERFUND SUBSIDIES 172,650 - - 172,650 09 21 REPAIRS & MAINTENANCE - 122 - - 09 22 LAND 270,000 32,660 - 270,000 09 23 CONSTRUCTION PROJECTS 5,818,580 270,868 1,242,758 4,575,822 210 24 INTERGOVERNMENTAL LOANS 54,070 - - 54,070 09 25 INTEREST 880 - - 880 09 $ 9,990,960 $ 412,691 $ 1,421,377 $ 8,569,583 149 MUNICIPAL ARTS ACQUIS. FUND (117) 26 SUPPLIES $ 4,700 $ - $ 493 $ 4,207 109 27 SMALL EQUIPMENT 1,700 - - 1,700 09 28 PROFESSIONAL SERVICES 191,000 11,883 3,855 187,145 29 29 TRAVEL 80 - - 80 09 30 RENTAL/LEASE 3,000 - 3,000 09 31 REPAIRS & MAINTENANCE 300 - - 300 09 32 MISCELLANEOUS 6,600 1,025 1,317 5,283 209 $ 207,380 $ 12,908 $ 5,665 $ 201,715 39 HO TEL/MO TEL TAX REVENUE FUND (120) 33 PROFESSIONAL SERVICES $ 90,400 $ 8,555 $ 670 $ 89,730 19 34 MISCELLANEOUS 1,000 - - 1,000 09 35 INTERFUND SUBSIDIES 4,000 - - 4,000 09 $ 95,400 $ 8,555 $ 670 $ 94,730 19 EMPLO YEE PARKING PERMIT FUND (121) 36 SUPPLIES $ 1,790 $ - $ - $ 1,790 09 37 PROFESSIONAL SERVICES 25,090 - 25,090 09 $ 26,880 $ $ - $ 26,880 09 YOUTH SCHOLARSHIP FUND (122) 38 MISCELLANEOUS $ 3,000 $ $ - $ 3,000 09 $ 3,000 $ $ - $ 3,000 09 TOURISM PROMOTIONAL FUND/ARTS (123) 39 PROFESSIONAL SERVICES $ 28,500 $ $ 780 $ 27,720 39 $ 28,500 8 $ 780 $ 27,720 39 Q 25 Packet Pg. 29 I 4.1.a I Page 3 of 6 CITY OF EDMO NDS EXPENDITURES BY FUND - DETAIL 2023 Adopted 3/31/2022 3/31/2023 Amount Title Budget Expenditures Expenditures Remaining %Spent REAL ESTATE EXC ISE TAX 2 (125) 1 SUPPLIES $ - $ 7,222 $ - $ - 09 2 PROFESSIONAL SERVICES 586,957 59,372 24,938 562,019 49 3 REPAIRS&MAINTENANCE 926,300 56,168 25,013 901,287 39 4 INTERFUND SUBSIDIES 5,684 - - 5,684 09 5 LAND 200,000 - - 200,000 09 6 CONSTRUCTION PROJECTS 2,343,957 301,189 190,159 2,153,798 89 $ 4,062,898 $ 423,951 $ 240,110 $ 3,822,788 69 REAL ESTATE EXCISE TAXI (126) 7 PROFESSIONAL SERVICES 8 REPAIRS & MAINTENANCE 9 INTERFUND SUBSIDIES 10 LAND 11 CONSTRUCTION PROJECTS 12 GENERAL OBLIGATION BONDS 13 INTEREST GIFTS CATALOG FUND (127) 14 SALARIES AND WAGES 15 OVERTIME 16 BENEFIT S 17 SUPPLIES 18 SMALL EQUIPMENT 19 PROFESSIONAL SERVICES 20 RENTAL/LEASE 21 MISCELLANEOUS CEVIEIERY MAINTENANCBIMPRO VEMENT (130) 22 SALARIES AND WAGES 23 OVERTIME 24 BENEFIT S 25 UNIFORMS 26 SUPPLIES 27 SUPPLIES PURCHASED FOR INVENTORY/RESALE 28 PROFESSIONAL SERVICES 29 COMMUNICATIONS 30 TRAVEL 31 RENTAL/LEASE 32 UTILITIES 33 REPAIRS & MAINTENANCE 34 MISCELLANEOUS PARKS TRUSTFUND (136) 35 PROFESSIONAL SERVICES CUMEIERY MAINTENANCE TRUSTFUND (137) 36 SMALL EQUIPMENT SISTER CITY COMMISSION (138) 37 SUPPLIES 38 TRAVEL 39 MISCELLANEOUS BUSINESS IMPROVEMENT DISTRICT FUND (140) 40 SUPPLIES 41 PROFESSIONAL SERVICES 42 MISCELLANEOUS EDMONDS RESCUEPLAN FUND (142) 43 PROFESSIONAL SERVICES TREE FUND (143) 44 SUPPLIES 45 PROFESSIONAL SERVICES 46 LAND $ 256,260 $ 22,499 $ 16,831 $ 239,429 79 550,800 13,266 - 550,800 09 147,557 - - 147,557 09 - - 50,000 (50,000) 09 554,755 97,473 - 554,755 09 155,470 - - 155,470 09 103,970 - - 103,970 09 $ 1,768,812 $ 133,238 $ 66,831 $ 1,701,981 49 $ 196,455 $ $ 7,431 $ 189,024 49 - 437 (437) 09 80,033 1,620 78,413 29 146,000 2,462 13,158 132,842 99 500 - - 500 09 56,500 - 56,500 09 17,510 4,378 13,132 259 600 - 173 427 299 $ 497,598 $ 2,462 $ 27,197 $ 470,401 59 $ 137,541 $ 21,898 $ 41,189 $ 96,352 309 3,500 210 707 2,793 209 54,487 9,412 13,400 41,087 259 1,000 - - 1,000 09 7,000 45 2,241 4,759 329 20,000 5,253 5,898 14,102 299 4,200 800 1,438 2,762 349 1,700 428 432 1,268 259 500 - - 500 09 9,420 2,923 2,387 7,033 259 5,565 888 1,383 4,182 259 500 - - 500 09 4,000 3,868 4,455 (455) 1119 $ 249,413 $ 45,724 $ 73,531 $ 175,882 299 $ 43,842 $ $ - $ 43,842 09 $ 43,842 $ $ - $ 43,842 09 $ 50,000 $ $ - $ 50,000 09 $ 50,000 $ $ - $ 50,000 09 $ 1,500 $ $ - $ 1,500 09 4,500 - 4,500 09 5,900 219 5,681 49 $ 11,900 $ $ 219 $ 11,681 29 $ 4,091 $ 94 $ 298 $ 3,793 79 78,327 10,835 9,204 69,123 129 6,157 172 674 5,483 119 88,575 11,101 10,176 78,399 119 $ 1,249,000 $ 232,175 $ 663,059 $ 585,941 539 1,249,000 232,175 663,059 585,941 539 $ 1,000 $ $ - $ 1,000 09 39,800 - 39,800 09 199,000 - 199,000 09 239,800 - 239,800 09 d CL 2 v c co LC L 4) r- co 7 CI .r N L_ LL M N 0 N O C. d R C co C LL 21 t C O 2 M N 0 N t c� L r C d z tt ca r� r� a 26 Packet Pg. 30 I 4.1.a I Page 4 of 6 C ITY OF EDMO NDS EXPENDITURES BY FUND - DErAIL 2023 Adopted 3/31/2022 3/31/2023 Amount Title Budget Expenditures Expenditures Remaining %Spent 2012 LTGO DEBT SERVIC FUND (231) GENERAL OBLIGATION BOND $ 235,000 $ $ - $ 235,000 09 INTEREST 74,800 - 74,800 09 $ 309,800 $ $ - $ 309,800 09 PARKS CONSTRUCTION FUND (332) 3 INTERFUND SUBSIDIES 4 PROFESSIONAL SERVICES 5 CONSTRUCTION PROJECTS 6 GENERAL OBLIGATION BONDS 7 INTEREST WATER FUND (421) 8 SALARIES AND WAGES 9 OVERTIME 10 BENEFIT S 11 UNIFORMS 12 SUPPLIES 13 WATER PURCHASED FOR RESALE 14 SUPPLIES PURCHASED FOR INVENTORY/RESALE 15 SMALL EQUIPMENT 16 PROFESSIONAL SERVICES 17 COMMUNICATIONS 18 TRAVEL 19 EXCISE TAXES 20 RENTAL/LEASE 21INSURANCE 22 UTILITIES 23 REPAIRS & MAINTENANCE 24 MISCELLANEOUS 25 INTERFUND SUBSIDIES 26 BUILDINGS 27 MACHINERY/EQUIPMENT 28 CONSTRUCTION PROJECTS 29 GENERAL OBLIGATION BONDS 30 REVENUE BONDS 31 INTERGOVERNMENTAL LOANS 32 INTEREST STORM FUND (422) 33 SALARIES AND WAGES 34 OVERTIME 35 BENEFIT S 36 UNIFORMS 37 SUPPLIES 38 SMALL EQUIPMENT 39 PROFESSIONAL SERVICES 40 COMMUNICATIONS 41 TRAVEL 42 EXCISE TAXES 43 RENTAL/LEASE 44INSURANCE 45 UTILITES 46 REPAIR & MAINTENANCE 47 MISCELLANEOUS 48 INTERFUND SUBSIDIES 49 LAND 50 BUILDINGS 51 CONSTRUCTION PROJECTS 52 GENERAL OBLIGATION BONDS 53 REVENUE BONDS 54 INTERGOVERNMENTAL LOANS 55 INTEREST $ - $ 62,656 $ - $ - 09 1,352,620 91,809 21,528 1,331,092 29 805,377 1,475,816 547,466 257,911 689 50,000 - - 50,000 09 47,650 - - 47,650 09 $ 2,255,647 $ 1,630,281 $ 568,994 $ 1,686,653 259 $ 963,268 $ 190,522 $ 301,339 $ 661,929 319 24,000 4,561 3,434 20,566 149 393,439 79,936 98,914 294,525 259 4,000 1,221 2,129 1,871 539 150,000 44,060 37,820 112,180 259 2,398,000 262,019 292,333 2,105,667 129 180,000 57,613 49,808 130,192 289 13,500 670 1,838 11,662 149 2,256,928 127,633 361,364 1,895,564 169 35,000 6,709 7,968 27,032 239 200 - - 200 09 1,696,934 318,512 333,368 1,363,566 209 187,952 37,987 46,612 141,340 259 215,319 122,359 225,379 (10,060) 1059 35,000 8,339 9,625 25,375 289 71,130 11,535 11,705 59,425 160 123,600 61,398 65,304 58,296 539 646,370 - - 646,370 09 12,500 12,500 09 10,000 - - 10,000 09 1,670,000 87,212 47,283 1,622,717 39 2,940 - - 2,940 09 333,830 333,830 09 25,840 25,840 09 185,300 - - 185,300 09 $ 11,635,050 $ 1,422,285 $ 1,896,223 $ 9,738,827 169 $ 821,952 $ 196,131 $ 357,241 $ 464,711 439 26,000 7,110 2,653 23,347 109 342,317 80,379 113,161 229,156 339 6,500 4,640 3,858 2,642 599 46,000 19,986 3,805 42,195 89 4,000 587 - 4,000 09 3,124,919 199,607 190,606 2,934,313 69 3,200 1,091 1,631 1,569 519 4,300 - - 4,300 09 499,658 201,489 207,849 291,809 429 293,210 66,250 72,519 220,691 259 30,265 82,335 31,680 (1,415) 1050 10,500 4,748 4,302 6,198 410 189,130 11,040 11,065 178,065 69 232,300 73,657 51,240 181,060 229 283,237 - - 283,237 09 680,000 - 680,000 09 25,000 - - 25,000 09 1,031,645 194,065 75,768 955,877 79 107,290 - - 107,290 09 160,870 - 160,870 09 61,600 - 61,600 09 103,070 - - 103,070 09 $ 8,086,963 $ 1,143,115 $ 1,127,379 $ 6,959,584 149 27 Packet Pg. 31 I 4.1.a I Page 5 of 6 CITY OF EDMO NDS EXPENDITURES BY FUND - DETAIL 2023 Adopted 3/31/2022 3/31/2023 Amount Title Budget Expenditures Expenditures Remaining %Spent SEWER FUND (423) 1 SALARIES AND WAGES $ 2,468,518 $ 467,317 $ 866,696 $ 1,601,822 359 2 OVERTIME 130,000 44,128 52,714 77,286 419 3 BENEFITS 867,257 184,029 290,355 576,902 339 4 UNIFORMS 11,500 4,794 5,689 5,811 490 5 SUPPLIES 453,000 67,115 100,721 352,279 229 6 FUEL CONSUMED 20,000 - - 20,000 09 7 SUPPLIES PURCHASED FOR INV OR RESALE 5,000 - - 5,000 W 8 SMALL EQUIPMENT 83,900 89,777 2,146 81,754 M 9 PROFESSIONAL SERVICES 2,587,949 511,460 534,970 2,052,979 219 10 COMMUNICATIONS 48,000 10,851 12,203 35,797 259 11 TRAVEL 5,000 - - 5,000 09 12 EXCISE TAXES 1,026,360 217,029 311,045 715,315 309 13 RENTAL/LEASE 312,006 81,329 77,630 234,376 259 14 INSURANCE 344,564 203,936 362,302 (17,738) 1059 15 UTILITIES 1,582,060 364,051 593,215 988,845 370 16 REPAIR& MAINTENANCE 728,630 317,205 57,197 671,433 89 17 MISCELLANEOUS 138,350 44,414 82,252 56,098 590 18 INTERFUND SUBSIDIES 1,588,089 - - 1,588,089 09 19 BUILDINGS 12,500 - - 12,500 09 20 CONSTRUCTION PROJECTS 2,976,163 1,092,673 - 2,976,163 09 21 GENERAL OBLIGATION BONDS 129,820 - - 129,820 09 22 REVENUE BONDS 55,310 - - 55,310 09 23 INTERGOVERNMENTAL LOANS 104,000 15,397 15,754 88,246 159 24 INTEREST 353,270 2,786 2,582 350,688 19 25 OTHER INT ERESr & DEBT SERVICE COSTS - 2,102 1,948 (1,948) 09 $ 16,031,246 $ 3,720,393 $ 3,369,420 $ 12,661,826 219 BOND RESERVEFUND (424) 26 REVENUE BONDS $ 840,010 $ $ $ 840,010 09 27INTEREST 1,149,810 1,149,810 09 $ 1,989,820 $ $ - $ 1,989,820 09 d O CL C ca C IL L O c0 7 CI .r N L IL M N O N O a d w R C c0 C LL t C O M N O N t C) L C� G Cd G t a 2s Packet Pg. 32 I 4.1.a I Page 6 of 6 C ITY OF EDMO NDS EXPENDITURES BY FUND - DETAIL 2023 Adopted 3/31/2022 3/31/2023 Amount Title Budget Expenditures Expenditures Remaining %Spent EQ UIPMENT RENTAL FUND (511) 1 SALARIES AND WAGES $ 279,652 $ 73,548 $ 130,524 $ 149,128 479 2 OVERTIME 2,000 222 - 2,000 09 3 BENEFITS 105,497 29,018 37,199 68,298 359 4 UNIFORMS 1,500 689 519 981 350 5 SUPPLIES 149,120 45,415 19,687 129,433 139 6 FUEL CONSUMED 1,000 - - 1,000 09 7 SUPPLIES PURCHASED FOR INVENTORY/RESALE 458,880 112,225 100,429 358,451 229 8 SMALL EQUIPMENT 58,000 1,950 362 57,638 19 9 PROFESSIONAL SERVICES 46,750 349 418 46,332 19 10 COMMUNICATIONS 3,000 516 756 2,244 259 11 TRAVEL 1,000 - - 1,000 09 12 RENTAL/LEASE 17,470 2,526 4,191 13,279 249 13 INSURANCE 47,938 51,903 52,373 (4,435) 1099 14 UTILITIES 14,000 5,850 7,458 6,542 530 15 REPAIRS & MAINTENANCE 60,000 9,606 11,621 48,379 199 16 MISCELLANEOUS 12,000 1,441 1,827 10,173 159 17 MACHINERY/EQUIPMENT 3,109,411 10,903 461,925 2,647,486 159 $ 4,367,218 $ 346,163 $ 829,288 $ 3,537,930 199 TEC HNO LO GY RENTAL FUND (512) 18 SALARIES AND WAGES $ 600,771 $ 66,179 $ 131,533 $ 469,238 229 19 OVERTIME 2,000 - - 2,000 09 20 BENEFITS 180,554 26,961 45,402 135,152 259 21 SUPPLIES 5,000 2,075 1,718 3,282 349 22 SMALL EQUIPMENT 181,800 15,261 51,415 130,385 2M 23 PROFESSIONAL SERVICES 61,860 3,349 10,026 51,834 169 24 COMMUNICATIONS 58,770 12,087 14,186 44,584 249 25 TRAVEL 1,500 - - 1,500 09 26 RENTAL/LEASE 4,640 1,115 410 4,230 99 27 REPAIRS & MAINTENANCE 476,532 375,901 419,006 57,526 889 28 MISCELLANEOUS 55,600 50 9,770 45,830 180 29 MACHINERY/EQUIPMENT 56,000 - - 56,000 09 $ 1,685,027 $ 502,978 $ 683,467 $ 1,001,560 419 TOTAL EXPENDITURE ALL FUNDS $ 126,732,225 $ 22,715,212 $ 26,946,235 $ 99,785,990 219 a 29 Packet Pg. 33 4.1.a Page 1 of 1 M I VC13aD1311C19AIM EXPENDITURES - GENERAL FUND - BY DEPARTMENT IN SUMMARY Title CITY COUNCIL OFFICE OF MAYOR HUMAN RESOURCES MUNICIPAL COURT ADMINISTRATIVE SERVICES CITY ATTORNEY NON -DEPARTMENTAL POLICE SERVICES SATELLITE OFFICE COMMUNITY SERVICES/ECONOMIC DEV. PLANNING & DEVELOPMENT HUMAN SERVICES PROGRAM PARKS& RECREATION PUBLIC WORKS FACILITIES MAINTENANCE Title 2023 Adopted 3/31/2022 3/31/2023 Amount Budget Expenditures Expenditures Remaining %Spent $ 480,256 $ 71,408 $ 108,460 $ 371,796 23% 495,273 89,568 101,671 393,602 21% 1,254,947 203,581 230,737 1,024,210 18% 1,451,763 284,025 352,625 1,099,138 24% 2,217,666 547,460 774,413 1,443,253 35% 1,161,780 233,065 186,270 975,510 16% 15,120,425 4,072,745 4,986,307 10,134,118 33% C 14,981,027 3,008,075 3,173,554 11,807,473 21% .O 145,681 21,922 26,541 119,140 18% C 1,199,451 122,479 263,059 936,392 22% LL 4,976,888 909,669 913,919 4,062,969 18% L � co 324,650 25,870 56,209 268,441 17% M 6,022,817 1,040,803 1,386,849 4,635,968 23% y L_ 3,842,053 757,219 967,711 2,874,342 25% IL M 4,013,010 562,089 1,264,752 2,748,258 32% o N $ 57,687,687 $ 11,949,976 $ 14,793,075 $ 42,894,612 26% O C. d LY R CITY OF EDMO NDS v C EXPENDITURES - UTILITY- BY FUND IN SUMMARY ca C LL 2023 Adopted 3/31/2022 3/31/2023 Amount 2+ Budget Expenditures Expenditures Remaining %Spent WATER UTILITY FUND $ 11,635,050 $ 1,422,285 $ 1,896,223 $ 9,738,827 0 16% STORM UTILITY FUND 8,086,963 1,143,115 1,127,379 6,959,584 14% N SEWER/WWTP UTILITY FUND 16,031,246 3,720,393 3,369,420 12,661,826 O 21% t BOND RESERVE FUND 1,989,820 - - 1,989,820 0% v L $ 37,743,079 $ 6,285,793 $ 6,393,021 $ 31,350,058 17% R r c m z tt co a 30 Packet Pg. 34 I 4.1.a I Page 1 of 2 C ITY O F EDMO NDS EXPENDITURES - GENERAL FUND - BY DEPARTMENT IN DETAIL Title 2023 Adopted Budget 3/31/2022 Expenditures 3/31/2023 Expenditures Amount Remaining %Spent CITY COUNCIL SALARIES AND WAGES $ 214,276 $ 42,890 $ 54,958 $ 159,318 26% BENEFITS 102,845 23,106 25,827 77,018 25% SUPPLIES 11,000 236 433 10,567 4% SERVICES 152,135 5,176 27,243 124,892 18% $ 480,256 $ 71,408 $ 108,460 $ 371,796 23% OFFICEOFMAYOR SALARIES AND WAGES $ 274,988 $ 61,694 $ 64,189 $ 210,799 23% BENEFITS 88,487 21,658 22,420 66,067 25% SUPPLIES 1,500 1,440 284 1,216 19% SERVICES 130,298 4,777 14,779 115,519 11% $ 495,273 $ 89,568 $ 101,671 $ 393,602 21% Q. HUMAN RESOURCES SALARIES AND WAGES $ 747,258 $ 116,150 $ 127,367 $ 619,891 17% c0 BENEFITS 236,609 41,649 48,229 188,380 20% SUPPLIES 13,600 246 460 13,140 3% M SERVICES 257,480 45,536 54,682 202,798 21% E IL $ 1,254,947 $ 203,581 $ 230,737 $ 1,024,210 18% i MUNICIPAL C O URT SALARIES AND WAGES $ 937,770 $ 192,338 $ 235,460 $ 702,310 25% BENEFITS 302,672 54,922 75,145 227,527 25% (J SUPPLIES 11,600 2,507 4,851 6,749 42% W SERVICES 199,721 34,258 37,169 162,552 19% ` $ 1,451,763 $ 284,025 $ 352,625 $ 1,099,138 24% LV) M ADMINISTRATIVE SERVICES C SALARIES AND WAGES $ 1,418,894 $ 331,842 $ 487,548 $ 931,346 34% v BENEFITS 429,103 110,163 129,844 299,259 30% SUPPLIES 13,000 2,729 2,796 10,204 22% O SERVICES 356,669 102,725 154,225 202,444 43% y $ 2,217,666 $ 547,460 $ 774,413 $ 1,443,253 35% CITY ATPO RNEY cv SERVICES $ 1,161,780 $ 233,065 $ 186,270 $ 975,510 16% $ 1,161,780 $ 233,065 $ 186,270 $ 975,510 16% NON -DEPARTMENTAL LL SALARIES AND WAGES $ 101,750 $ - $ - $ 101,750 0% >, BENEFITS 239,583 18,865 37,772 201,811 16% SUPPLIES 5,000 - - 5,000 0% C SERVICES 13,537,502 4,003,880 4,898,535 8,638,967 36% 2 INTERFUND SUBSIDIES 913,000 50,000 50,000 863,000 5% M DEBT SERVICE - PRINCIPAL 191,620 - - 191,620 0% p DEBT SERVICE - INTEREST 131,970 131,970 0% N $ 15,120,425 $ 4,072,745 $ 4,986,307 $ 10,134,118 33% t cj PO LIC E SERVIC ES R SALARIES AND WAGES $ 9,556,760 $ 2,001,754 $ 1,975,849 $ 7,580,911 21% BENEFITS 3,303,628 692,447 720,278 2,583,350 22% SUPPLIES 342,941 28,690 33,205 309,736 10% d SERVICES 1,777,698 285,184 444,221 1,333,477 25% z $ 14,981,027 $ 3,008,075 $ 3,173,554 $ 11,807,473 21% 0 S ATELLITE O FFIC E Q SALARIES AND WAGES $ 38,537 $ - $ 10,920 $ 27,617 28% BENEFITS 7,298 - 2,075 5,223 28% SUPPLIES 12,000 10,980 - 12,000 0% SERVICES 87,846 10,941 13,545 74,301 15% $ 145,681 $ 21,922 $ 26,541 $ 119,140 18% 31 Packet Pg. 35 1 I 4.1.a I Page 2 of 2 CITY OF EDMO NDS EXPENDITURES - GENERAL FUND - BY DEPARTMENT IN DETAIL 2023 Adopted 3/31/2022 3/31/2023 Amount Title Budget Expenditures Expenditures Remaining %Spent COMMUNITY S ERVIC ES /EC O N DEV. SALARIES AND WAGES $ 550,413 $ 50,441 $ 159,276 $ 391,137 29% BENEFITS 153,183 16,285 40,747 112,436 27% SUPPLIES 4,075 184 391 3,684 10% SERVICES 491,780 55,568 62,645 429,135 13% $ 1,199,451 $ 122,479 $ 263,059 $ 936,392 22% PLANNING & DEVELOPMENT SALARIES AND WAGES $ 2,176,581 $ 542,158 $ 558,228 $ 1,618,353 26% BENEFITS 736,473 183,402 209,013 527,460 28% SUPPLIES 23,400 1,366 3,275 20,125 14% SERVICES 2,040,434 182,744 143,403 1,897,031 7% $ 4,976,888 $ 909,669 $ 913,919 $ 4,062,969 18% HUMAN SERVICES PROGRAM SALARIES AND WAGES $ 101,849 $ 14,413 $ 27,870 $ 73,979 27% BENEFITS 29,301 2,888 8,012 21,289 27% SUPPLIES 15,000 59 661 14,339 4% SERVICES 178,500 8,510 19,666 158,834 11% 324,650 25,870 56,209 268,441 17% PARKS & REC REATIO N SALARIES AND WAGES $ 2,859,976 $ 571,618 $ 824,595 $ 2,035,381 29% BENEFITS 968,480 202,033 266,030 702,450 27% SUPPLIES 468,900 41,287 59,789 409,111 13% SERVICES 1,635,461 225,866 236,436 1,399,025 14% MACHINERY/EQUIPMENT 90,000 - - 90,000 0% $ 6,022,817 $ 1,040,803 $ 1,386,849 $ 4,635,968 23% PUBLIC WORKS ADMINISTRATION SALARIES AND WAGES $ 372,900 $ 33,162 $ 104,156 $ 268,744 28% BENEFITS 142,675 16,076 31,472 111,203 22% SUPPLIES 9,600 1,211 3,618 5,982 38% SERVICES 92,439 20,793 21,297 71,142 23% $ 617,614 $ 71,242 $ 160,542 $ 457,072 26% FACILITIES MAINTENANCE SALARIES AND WAGES 981,868 216,781 408,807 573,061 42% BENEFITS 402,717 84,651 136,778 265,939 34% SUPPLIES 128,000 18,660 33,813.86 94,186 26% SERVICES 1,359,860 241,997 396,629 963,231 29% MACHINERY/EQUIPMENT 1,140,565 288,725 851,840 25% $ 4,013,010 $ 562,089 $ 1,264,752 $ 2,748,258 32% ENGINEERING SALARIES AND WAGES $ 2,194,963 $ 461,480 $ 555,827 $ 1,639,136 25% BENEFITS 772,724 173,033 199,868 572,856 26% SUPPLIES 2,200 - 862 1,338 39% SERVICES 254,552 51,464 50,612 203,940 20% $ 3,224,439 $ 685,977 $ 807,168 $ 2,417,271 25% TOTAL GENERAL FUND EXPENDITURES $ 57,687,687 $ 11,949,976 $ 14,793,075 $ 42,894,612 26% O CL C ca C LL L co 7 CI N L_ LL M N O N O C. d R C co C LL t r� C O 2 M N O N t c� R r C d E t t) ca r� Q 32 Packet Pg. 36 4.1.a GENERAL FUND OVERVIEW BALANCES CHANGE IN FUND BALANCES GENERAL FUND ---- ACTUAL ---- ---- ACTUAL ---- & SUBFUNDS 3/31 /2023 3/31 /2023 Q1 YTD Fund Balance Cash Balance 001-General Fund $ 5,001,036 $ 2,600,732 $ (6,642,630) $ (6,642,630. 009-Leoff-Medical Ins. Reserve 114,591 130,544 (102,272) (102,272. 011-Risk Management Reserve Fund 25,000 25,000 - - 012-ContingencyReserve Fund 1,782,150 1,782,150 - - 014-Historic Preservation Gift Fund 11,701 11,701 - - 016-Building Maintenance 4,219,488 4,362,764 (77,116) (77,116; .v 017 - Marsh Restoration & Preservation 849,766 849,766 - - ii 018 -Edmonds Homelessness Response Fd 200,000 200,000 Total General Fund & Subfunds $ 12,203,732 $ 9,962,656 $ (6,822,019) $ (6,822,019 3 N L *$9,361,208 of the fund balance in Fund 001 added to the $1,782,150 balance in Fund 012, represent the required ii 20% operating reserve. N N There are no interfund loans outstanding at this time. 0 a m GOVERNMENTAL FUNDS OVERVIEW 7a U_ , BALANCES CHANGE IN FUND BALANCES 2 GOVERNMENTAL M ---- ACTUAL ---- ---- ACTUAL ---- 04 N FUNDS 3/31 /2023 3/31 /2023 Q1 YTD Fund Balance Cash Balance L ca General Fund & Subfunds $ 12,203,732 $ 9,962,656 $ (6,822,019) $ (6,822,019; Special Revenue 15,758,161 23,077,486 (592,673) (592,673; Capital Projects - Fund 332 (202,396) (281,113) (410,079) (410,079 t u r Total Governmental Funds $ 27,759,496 $ 32,759,029 $ (7,824,770) $ (7,824,770 Q *Please note that these revenues and expenses occur within annual cycles. This Interim Report is not adjusted for accruals or those annual cycles. 33 Packet Pg. 37 4.1.a SPECIAL REVENUE FUNDS OVERVIEW BALANCES CHANGE IN FUND BALANCES GOVERNMENTAL ---- ACTUAL ---- ---- ACTUAL ---- SPECIAL REVENUE 3/31/2023 3/31/2023 Q1 YTD Fund Balance Cash Balance 104 - Drug Enforcement Fund $ 67,629 $ 70,882 $ 59 $ 59 111 - Street Fund (228,227) (169,267) (636,911) (636,911 112 - Combined Street Const/Im prove 2,849,017 361,011 409,512 409,512 117 - Municipal Arts Acquis. Fund 638,484 668,687 3,596 3,596 a 120 - Hotel/Motel Tax Revenue Fund 117,165 106,639 22,301 22,301 121 - Employee Parking Permit Fund 85,399 88,879 10,367 10,367 122 - Youth Scholarship Fund 15,221 15,927 13 13 c 123 -Tourism Promotional Fund/Arts 122,121 122,095 6,951 6,951LL c 125 -Real Estate Tax 2 3,315,960 3,403,440 23,403 23,403 126 - Real Estate Excise Tax 1 * 4,223,096 4,331,330 197,574 197,574 4' 127 - Gifts Catalog Fund 3,070,510 3,212,613 6,718 6,718 130 - Cemetery Maintenance/Improvement 245,632 258,750 (22,537) (22,537 Cy 136 - Parks Trust Fund 153,942 161,439 (7,497) (7,497 ;n 137- Cemetery Maintenance Trust Fund 1,109,907 1,161,079 6,606 6,606 LL 138 - Sister City Commission 19,692 20,615 (202) (202 N 140 -Business Improvement Disrict 67,697 67,697 27,913 27,913 141 -Affordable and Supportive Housing Fd 255,878 248,240 21,312 21,312 r- 142 - Edmonds Rescue Plan Fund (597,461) 8,710,438 (662,049) (662,049 a 143 - Tree Fund 226,497 236,993 198 198 Total Special Revenue $ 15,758,161 $ 23,077,486 1 $ (592,673) $ (592,673 Ta *$200,000 of the fund balance in Fund 126 has been reserved for Marsh Restoration Funding, as well as $1,000,000 for the purchase of Open Space. c ii ENTERPRISE FUNDS OVERVIEW 21 O 2 M N O N L BALANCES CHANGE IN FUND BALANCES L M ENTERPRISE ---- ACTUAL ---- ---- ACTUAL ---- .. FUNDS 3/31/2023 3/31/2023 Q1 YTD Fund Balance Cash Balance m E t 421 -Water Utility Fund $ 32,578,533 $ 9,703,042 $ 689,909 $ 689,909 r Q 422-Storm Utility Fund* 19,223,209 6,085,763 1,151,439 1,151,439 423 - Sewer/WWTP Utility Fund 63,944,318 14,975,696 1,500,483 1,500,483 424 - Bond Reserve Fund 847,053 847,053 3,093 3,093 411 -Combined Utility Operation 37,625 88,007 37,625 37,625 Total Enterprise Funds $ 116,630,738 $ 31,699,562 1 $ 3,382,549 $ 3,382,549 *$250,000 of the Storm Utility Fund Balance has been reserved for Marsh Restoration Funding. *Please note that these revenues and expenses occur within annual cycles. This Interim Report is not adjusted for accruals or those annual cycles. 34 Packet Pg. 38 4.1.a SUMMARY OVERVIEW BALANCES CHANGE IN FUND BALANCES ---- ACTUAL ---- ---- ACTUAL ---- CITY-WIDE 3/31 /2023 3/31 /2023 Q1 YTD Fund Balance Cash Balance Governmental Funds $ 27,759,496 $ 32,759,029 $ (7,824,770) $ (7,824,770 Enterprise Funds 116,630,738 31,699,562 3,382,549 3,382,549 m Internal Services Fund 9,758,332 5,419,001 (599,997) (599,997 Total City-wide Total $ 154,148,566 $ 69,877,591 $ (5,042,219) $ (5,042,219 v c c ii INTERNAL SERVICE FUNDS OVERVIEW L L U_ M N O N BALANCES CHANGE IN FUND BALANCES INTERNAL SERVICE ---- ACTUAL ---- ---- ACTUAL ---- a m FUNDS 3/31 /2023 3/31 /2023 Q1 YTD Fund Balance Cash Balance f° 511 - Equipment Rental Fund $ 9,126,813 $ 5,091,975 $ (269,014) $ (269,014 .� LL 512 -Technology Rental Fund 631,519 327,026 (330,983) (330,983; Total Internal Service Funds $ 9,758,332 $ 5,419,001 $ (599,997) $ (599,997 p M N O N L V L C� G C d E t V R Q *Please note that these revenues and expenses occur within annual cycles. This Interim Report is not adjusted for accruals or those annual cycles. 35 Packet Pg. 39 2023 First Quarter Financial Update irl REPOI Y 0 1� June 27, 2023 Packet Pg. 40 What to expect? Tonight — first quarter (March 31) financial update September — mid -year review, finances through June 30 October — required presentations reviewing 1) city revenue sources in general, 2) property taxes in particular Spring 2024 — recap of 2023 and updating final results for the year Some items to note this quarter are: • Page 21— Sales Tax is up $114,851 from this point last year. • Page 21— Gas Utility Tax is up $47,783. • Page 22 —Building Plan Review and Inspection Fees are up $82,333 from this point last year, Building Permits are down $(79,833), and Engineering Fees and Charges are down $(55,549). Development Services revenues overall are down a total of $(65,121) from this point last year. • Page 22 — Parks & Recreation Program Fees are up $44,598 from this point last year. a� a 2 c U_ L L a� U_ M N O N L O CL W 21 c� w a Packet Pg. 41 Quarter -to -date Sales Tax Revenues for the 3 months ended March 31 $114,851 ahead of last year, and $73,749 under budget Sales and'Use Tax CLJFri ul at vo Monthly YTD bra ria r re Budget forecast Budget forecast ActL.aIs Jarruary $ February March };pM Ma y JUnE July August September October November December 911,577 $ 1r999,408 2r$54,859 3r643,225 4,624,484 5,567,972 6,580,085 7,669,335 9,683,582, 9,76.9,647 10,864,900 11,500,000 911,577 1rb87,831 $5�57,451 788,366 981,259 943,488 1,012,114 1,099, 249 1,014,248 1,085,064 1,096,253 1,035,100 879,231 1,908,8�2 2,781,110 -3.55% -4.53 % -2_58% Sales and LTse Tax 1 } OOO,OD o 11.0 00.ODO 14,0 0D, 000 9; DO 0,000 8-000,wo 7,_}0-0} �0y,�0y,0�{0� 6, l}y() �O,�lyJ,��J{O �J-l��yl,,0 �0,}lJ�}{O 4.0-0 0,000 ..,_ DOO, D00 -1, DOD, DDO 1, DOO, D00 O JAN FEB MAR APR MAY JU YUL. AUGEP OCT NOV DEC: —w—C=ent Year —Budget Pr1or Dear U�ry w 'O Packet Pg. 42 r Q Breakdown by business category of the change in Sales Tax revenue for first Quarter 2023 compared to first Quarter 2022 Total Retail Automotive Eat1ag & Dtinlfing C onstrmtion Trade BUSiileSS SerViC.eS Others Retail Food Stores Automotive Repair Aimisement & Recreation Health & Personal Care Accommodation 3nufacrafing Gasoline Com*T imications Clotiting and Accessories isc Retail Wholesale Trade zs0,000) Change in Sales Tax Revenue: March 2023 compared to March ?022 so $25o.o 2 c c ii L a� r L 7 N L LL M N CO N d C Lo a m 21 a� r L 7 C E t r Q Quarter -to -date Real Estate Excise Tax Revenues for the 3 months ended March 31 $272,197 behind last year, and $387,714 under budget Real Estate Excise Tax 1 & 2 Cumulative Budget Forecast Monthly Budget Forecast Y1D Actuals Variance % January $ 342,055 $ 342,055 $ 151,084 -55.83 /. February 560,818 218,763 270,799 -51.71% March 909,543 348,725 521,829 -42.63% April 1,192,058 282,515 May 1,541,969 349,911 June 1,918,974 31 /,006 July 2,301,683 382,109 August 2,108,930 407,246 September 3,135,518 426,588 October 3,524,452 388,935 November 3,913,570 389,117 December 4,400,000 486,430 Real Estate Excis e Tax 1 & 2 4. ,W,000 4,000,000 3. ,00,000 3.000,000 2,500,000 2.000,000 1.50 0.000 1.000,000 500.000 0 JAN FEB I\L4R APR hL�Y JUN YUL AL:CT SEP OC'T NOV DEC' mmm�C'rurent Yew, �Budzet PnYor Yew c �a c ii a� M Or L LL M N O N m c L 0 a m w L N r L M 7 CY c m E t 0 r r Q Packet Pg. 44 Annual Sales tax revenue for the first time passes Annual Property Tax revenue 12,000,000 1 7.0[ ,000, 000 V,000,000 6,000,000 4,000,000 2,000,000 — — — Sa les Tax ,I= an 01 - Property Tax - E M Tax Other Takes � � r M,! i i i i i### i- i i i i!##-low 01 2019 2020 01 MM • 02 Packet Pg. 45 How much have Edmonds Property Tax Revenues fallen behind inflation over the last 13 years? $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ■ Property Tax (If Adjusted for Inflation since 2010) ■ Property Tax (Actual) �F F.U� � s Packet Pg. 46 How much have Edmonds Property Tax Revenues fallen behind inflation over the last 13 years? $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 2011-2023 $27,989,669 E pryfQ�O w Packet Pg. 47 FIRST QUARTER REPORT Thank you. Ot E[I)94r� Packet Pg. 48 4.2 City Council Agenda Item Meeting Date: 06/27/2023 Highway 99 Community Renewal Plan Staff Lead: Susan McLaughlin, Planning & Development Director Department: Planning & Development Preparer: Susan McLaughlin Background/History The areas bordering Highway 99 are an important part of Edmonds, with many homes, diverse businesses, and key transportation infrastructure. However, some areas along the corridor face persistent challenges: vacant and deteriorating buildings, lack of access to public space, streets designed for cars, and pockets of criminal activity. As development increases the number of residential uses near the highway, the city is assessing opportunities to improve quality of life, address longstanding issues, and accelerate desired changes. A community -supported vision for the area was developed through the Highway 99 Subarea Plan that was adopted in 2017. The vision outlined in the Subarea plan requires a significant amount of public and private investment that often happens at a slow incremental pace. This can be frustrating to community members, staff, and elected officials that would like to see more immediate change. A Community Renewal Plan is a planning tactic intended to expedite positive investment. Staff Recommendation City staff, MAKERS and ECONorthwest have developed the draft of the attached draft Community Renewal Plan that meets the criteria of RCW 35.81. Staff will use this initial meeting as an informative overview of the Community Renewal Plan and the Community Renewal designation process. Staff intends to return to Council to host a public hearing and request approval of a resolution that would designate the City as the Community Renewal Agency and adopt the Community Renewal Plan. The Plan was reviewed by the Planning Board on June 14 for preliminary comments and questions. The Plan will return to the Planning Board in July to formalize recommendations to Council. Narrative Community Renewal is a tool to revitalize areas where aging infrastructure and buildings, technological and social changes, obsolete planning, and/or other factors are inhibiting healthy growth and change. Cities like Shoreline, Olympia, and Tukwila have used this tool to help revitalize areas challenged by similar issues to those along Highway 99 in Edmonds. The community renewal law (RCW 53.81) empowers cities with a variety of tools to remove the barriers to positive change. For example, a city can acquire, transfer, and/or sell property for development that meets community needs, supports local businesses, and/or catalyzes investment. A city can also assist property owners, tenants, and residents affected by redevelopment, and/or provide incentives for job Packet Pg. 49 4.2 creation and retention. Staff is actively looking for acquisition opportunities on the corridor. The The attached Community Renewal Plan includes the following components: -Planning Context -Implementation Tools -Summary of Community Needs and issues -Recommended Projects This plan was developed over a period of two years. The pandemic, coupled with the termination of the initial consultant contract, caused delays in community conversations. However, when the project was re -launched in 2022, the consultant and staff held numerous stakeholder meetings, conducted a site tour and held a virtual open house to share analysis and to obtain feedback. The draft findings and the recommendations were developed as a direct result from these stakeholder meetings and broader public outreach, in addition to the economic and urban design analysis. To designate a community renewal area, City Council must: 1. Pass a resolution that identifies the specific area for community renewal, adopts findings of blight that apply to that area, and designates the City as the Community Renewal Agency. 2. Propose a community renewal plan that outlines the goals and strategies for community renewal. 3. Host a public hearing of the proposed community renewal plan, per RCW 35.81.060 (3). 4. Adopt a community renewal plan for the area. 5. If needed, update the comprehensive plan for consistency with the adopted community renewal plan. 6. Propose and adopt specific projects in the community renewal area, consistent with the adopted community renewal plan. 7. If necessary to implement an adopted project, pass an ordinance authorizing condemnation to acquire property. Attachments: EdCRA_CommunityRenewalPlan_FINAL+Appendicies Packet Pg. 50 r-� u W.G. L . 1 Edmonds Highway 99 Community Renewal Plan 4.2.a Introduction The area around Highway 99 is an important part of Edmonds, with many homes, unique and diverse businesses, and key transportation infrastructure. However, some areas along the corridor face persistent challenges: vacant and deteriorating buildings, lack of access to public space, streets designed for cars, not people, and pockets of criminal activity. As development increases the number of residential uses near the highway, the city is assessing opportunities to improve quality of life, address longstanding issues, and accelerate desired changes. A community -supported vision for the area was developed through the Highway 99 Subarea Plan that was adopted in 2017. The Highway 99 Community Renewal Plan is an action plan designed to show evidence of blight that inhibits positive development, identify tools to mitigate blight through community renewal, and coordinate City -led projects to address longstanding problems particularly acute in the southern part of the subarea. It includes the Summary of Community Needs and Blight, developed through conversations with stakeholders and an urban design and economic analysis of the area. The plan also defines the study area, summarizes the project approach, discusses tools available to implement renewal projects, and describes project recommendations. The plan includes the following components and appendices: • Planning Context • Implementation Tools • Summary of Community Needs and Blight • Description of Recommended Projects Appendices A. Economic Profile, prepared by ECONorthWest B. Urban Design Analysis, prepared by MAKERS architecture & urban design, LLP C. Recommended Updates to the Subarea Plan D. Focus Group Notes E. Summary of Community Renewal Area Powers a Packet Pg. 52 4.2.a Edmonds Highway 99 Community Renewal Plan Community Renewal Area Any projects pursued through community renewal must fall within the dotted boundary in the map below. Map 1. Study Area Map I r-m � �' � II • r � a X) OTH ST r xi E C IC _ 1 X ESPERANCE "f T�--�+� � ^'t, � •�� ',f., w � 2 MAPLL LN (UNINCORPORATED} l7 Y • Z o[ fn f � T •k _f:. 1 J Q C1 �- L Q ADR NA LN — - �F ,. t �. Q � EDMONDS _' 7 J x ¢ r i ;± ld LUTHERAN i f� „ Q = CHURCH.to ILL -- 236TH ST 5 � �`' - �= r• � , , _ SAFEWAY � r 238TI.I.S1 - h 3 E r • U MOTELs - _ At M . IFr MATH AY BALLINGER as�;=• ' BURUN�Ton!PAR �� r p, �• COAT FACTORY • fC � Z4�ND ST r .. - - .,tea, • �_ - Interurban trail Study area — C MPBELL 'a AU GROUP t`"`' 0 100 500 1,000 Feet 244TH-5-T-Sw � � Packet Pg. 53 Edmonds Highway 99 Community Renewal Plan 4.2.a Approach Project Launch Stakeholder interviews: MAKERS and City staff interviewed groups of Highway 99 area stakeholders including local service providers, property and business owners, law enforcement, and community leaders. Site tour: MAKERS and City staff walked throughout the area to document existing conditions and develop a richer understanding of the local fabric. The team focused on business fronts, building conditions, streetscape design, traffic patterns, vacant areas, and opportunity sites. Analvsis Case study review: MAKERS reviewed comparable uses of the Community Renewal Law in other cities in Washington state to understand its relevance for the Highway 99 area. Economic Profile: ECONorthwest created an Economic Profile for the area to better understand the local economic, market, employment, development, and community trends, feasibility for redevelopment, area demographics. This helped contextualize the circumstances and existing conditions of the built environment. The Economic Profile offered foundational information useful for exploring different community revitalization planning tools and provided recommended potential policy tools to achieve community goals. Urban Design Analysis: MAKERS assessed the arrangement, condition, and function of buildings, the transportation network, vacant land, and natural spaces in the study area. The analysis documented conditions of blight as identified in RCW 35.81.015. Open House: City staff, MAKERS, and ECONorthwest hosted an online open house to share Analysis phase findings. Plan and Recommendations Draft projects: City staff, MAKERS, and ECONorthwest drafted a list of project actions for further review Community Renewal Plan: MAKERS and City staff worked to draft the Community Renewal Plan, that meets the criteria of RCW 35.81, and present this document for City Council consideration and potential adoption. Project Launch Analysis Plan and Recomendations Targeted interviews Open House #1: Draft projects Hearings + with stakeholders Background info staff meeting adoption & findings Q Packet Pg. 54 Edmonds Highway 99 Community Renewal Plan 4.2.a Planning Context Background and History The study area is in southeast Edmonds, in the southern part of the Highway 99 Subarea. It is composed of parcels adjacent to Highway 99 from 22811 St SW to the north and 244th St SW to the south. Highway 99 is a seven -lane arterial that mostly serves local transportation needs. There is a mix of businesses and apartments along the highway. The study area is surrounded by residential single-family neighborhoods to the east and west. The study area became part of the City of Edmonds in two phases, in 1961 (south/east side), and 1990's (north/west side). Other nearby parts of Highway 99 are under the jurisdiction of Shoreline, Mountlake Terrace, Lynnwood, and unincorporated Snohomish County. Fractured jurisdictional boundaries can complicate efforts to improve conditions along the corridor. For much of the 20th century, Highway 99 was the principal north -south route through western Washington. It was the focus of early efforts to develop road design features that separate through traffic from intersecting roads, including the partial - cloverleaf interchange constructed between Highway 99 and SR 104 at the southern end of the study area. Buildings dating from mid-century are common features along the Highway throughout the Puget Sound region. However, after 1-5 was constructed, some businesses along Highway 99 struggled and the area saw reduced investment. Over time, new businesses and residents found homes adjacent to the highway, but persistent issues remain related to the legacy of highway infrastructure overbuilt to serve today's needs. There is ongoing tension between Highway 99's designed function as a highway and its increasing role as a commercial and mixed -use "main street". Map 2. Study Area Regional Context Map 3. Study Area Annexation History r I 1994 1— I I I I 1995 --� Study Area Annexation Date 1980 I I --J i 1997 � IIr i I I r I 1 r— J 1961 �EDMON':� I I r I I I I _1 I SHORELINE A Q Packet Pg. 55 Edmonds Highway 99 Community Renewal Plan 4.2.a Implementation Tools Community Renewal Law Community Renewal is a tool to revitalize areas where aging infrastructure and buildings, technological and social changes, obsolete planning, and/or other factors are inhibiting healthy growth and change. Cities like Shoreline, Olympia, and Tukwila have used this tool to help revitalize areas challenged by similar issues to those along Highway 99 in Edmonds. The community renewal law (RCW 53.81) empowers cities with a variety of tools to remove the barriers to positive change. For example, a city can acquire, transfer, and/or sell property for development that meets community needs, supports local businesses, and/or catalyzes investment in a blighted area. A city can also assist property owners, tenants, and residents affected by redevelopment, and/or provide incentives for job creation and retention. For more about powers conveyed by the community renewal law, see Appendix E: Summary of Community Renewal Area Powers. The Community Renewal Law requires city council adoption of findings of blight and a Community Renewal Plan. The City is not required to submit the resolution adopting the CRA findings or plan to the state. For more information about specific conditions in the study area that enable the use of the Community Renewal Law, see the Summary of Community Needs and Blight and the findings of blight documented in Appendix B: Urban Design Analysis. Community Renewal Implementation To designate a community renewal area, city council must: 1. Pass a resolution that identifies the specific area for community renewal, adopts findings of blight that apply to that area, and designates the City as the Community Renewal Agency. 2. Propose a community renewal plan that outlines the goals and strategies for community renewal. 3. Host a public hearing of the proposed community renewal plan, per RCW 35.81.060 (3). 4. Adopt a community renewal plan for the area. 5. If needed, update the comprehensive plan for consistency with the adopted community renewal plan 6. Propose and adopt specific projects in the community renewal area, consistent with the adopted community renewal plan. 7. If necessary to implement an adopted project, pass an ordinance authorizing condemnation to acquire property. Q Packet Pg. 56 4.2.a Edmonds Highway 99 Community Renewal Plan Tax Increment Financing As of 2021, Washington state cities are empowered to designate up to two tax increment financing (TIF) districts. The cities must designate specific infrastructure improvements to enable development in the district or "increment area" and demonstrate that development is unlikely to occur without these improvements. Though property tax revenue increases are typically limited to 1 % annually, a TIF allows a city to collect revenue on the increased value of properties at the normal tax rate, bond against the expected future tax revenue, and use those funds to construct the designated infrastructure improvements. Tax rates in the area do not rise, but the city will collect more revenue due to the increased property values created by the infrastructure improvements and new development. Once the bonds are repaid, the increment area is dissolved, and taxation is distributed per the normal percentages to schools, ports, counties, and other entities. Example infrastructure eligible for construction and/or improvement includes: How tax increment financing works See �5e as �e tea Base assessed value Revenue to City c 0 m New base value Time Figure 1. Tax increment financing (TIF) diagram adapted from original by Washington Economic Development Association. • Streets and sidewalks or other non -motorized transportation facilities • Water, sewer, and stormwater systems • Transit facilities • Parks, recreation, and community facilities Increment areas may not total more than $200 million in assessed valuation, or more than 20 percent of the total assessed valuation of the sponsoring jurisdiction, whichever is less. They cannot add additional public improvements or change the boundary of the increment area once adopted. TIF infrastructure projects are not required to be included in the City's Capital Improvement Program (CIP). The City will be required to prepare a contingency funding plan to cover project costs in the event TIF revenues accrue more slowly than expected. TIF Implementation 1. Conduct additional analysis of TIF to help explore goals for the use of this tool, potential areas, and different scenarios for how this tool could be used. This analysis should include a review TIF eligibility requirements, development potential of target parcels, financial assessment, and infrastructure needs and costs. 2. Detail the location of the district, public improvement costs, TIF revenues, and other elements required under the law.' Demonstrate why development would occur at a significantly reduced rate if the infrastructure were not constructed. Q 3. Hold at least two public briefings for the community solely on the tax increment project, with a description of the increment area, the public improvements proposed to be financed with the tax allocation revenues, and a detailed estimate of tax revenues for the participating local ' Requirements for TIF, https://mrsc.org/Home/Stay-Informed/MRSC-Insight/September-2021 /Tax-Increment-Financing-Now- Available-in-WA.aspx. Once an increment area is established, the boundaries cannot be modified. Packet Pg. 57 4.2.a Edmonds Highway 99 Community Renewal Plan governments and taxing districts, including the amounts allocated to the increment public improvements. 4. Analyze different tax revenue scenarios and create a detailed plan for implementation. 5. Submit the project analysis to the office of the treasurer for review and consider any comment that the treasurer provides. 6. Pass an ordinance that designates an increment area (area expected to benefit from the development), identifies the infrastructure improvements to be financed, identifies the funding mechanisms, sets a sunset date for increment area, and sets a deadline for construction to begin. 7. Issue bonds or obtain other financing to fund infrastructure improvements. 8. Permit and construct infrastructure project. 9. Retire the increment area once bonds are repaid or by the sunset date, whichever occurs first. a Packet Pg. 58 Edmonds Highway 99 Community Renewal Plan 4.2.a Public -Private Partnership Public -private partnerships for economic development typically involve the use of public financial assistance programs and other public levers or interventions in partnership with the private sector to facilitate development outcomes. Typically, these partnerships are used to support projects that align with public policy objectives, but that are not feasible without public participation or support (such as with infrastructure investment). These partnerships can advance community development but should be carried out with a partnership structured responsibly and with support from project stakeholders. These partnerships can be more effective if the following is addressed: 1. Identify a compelling development strategy with demonstrable public benefit. 2. Generate support for development objectives from elected officials and stakeholders. 3. Identify priority sites and lay the groundwork for development through pre -development activities (preparing the site for development). 4. Get to know the development community, find a capable development partner, and form a public -private partnership team. 5. Identify public assistance tools and further understanding on the range of tools available. 6. Right size the amount of public assistance. 7. Structure a fair deal and monitor project performance. If this partnership will help advance the construction of a community facility, there are other considerations to address including an analysis of the site factors that will influence the facility use, such as access, proximity to complementary uses, infrastructure, and utilities, etc. The ownership models of a community facility vary and could include non-profit ownership or public ownership such as through a Public Development Authority. Reconnecting Communities Grant Program The 2021 federal Bipartisan Infrastructure Law (BIL) established the Reconnecting Communities Pilot (RCP) discretionary grant program, with $1 billion to disburse over five years. This program is dedicated to reconnecting communities that were previously cut off from economic opportunities by transportation infrastructure. Funding supports planning grants and/or capital construction grants, as well as technical assistance, to restore community connectivity through the removal, retrofit, mitigation, or replacement of eligible transportation infrastructure facilities. Key criteria for the grant, weighted equally, are listed below. For more detail see the RFP. • Equity, Environmental justice, and Community Engagement; • Mobility and Community Connectivity; • Community -based Stewardship, Management, and Partnerships; and • Equitable Development and Shared Prosperity. Applications for the program's second year will reopen in fall 2023. a Packet Pg. 59 Edmonds Highway 99 Community Renewal Plan 4.2.a Highway 99 Subarea Plan EIS Mitigation The Highway 99 Subarea Plan was part of a planned action EIS effort, which included environmental analysis of potential impacts of plan outcomes and mitigation measures to address adverse impacts. EIS mitigation measures are long-term strategies to support expected growth which will be gradually implemented through 2035. As of January 2023, not all mitigation measures indicated in the EIS have been implemented. Some of these measures would help remediate blight conditions in the study area. Relevant EIS mitigation measures: Parks and Open Space • Regulations and Commitments: o Acquire park land in the Highway 99/SR 104 areas to provide adequate park service in redeveloping areas. Create new civic spaces to enhance investment and revitalization while meeting recreation needs, especially where service gaps exist, or higher residential impact is planned (PROS 2014 Goal 2.G). • Other Mitigation measures: Encourage and promote public open spaces through public/private partnerships where possible. Implement pedestrian and bicycle transportation improvements to provide greater access to existing facilities within one-half mile of the study area, with a focus on removing Highway 99 as a physical barrier. Transportation • Incorporated Plan Features: o Recommendation L3 - Pedestrian Circulation Install new signal at 240th (with crosswalks on all four legs) concurrent with new development at 240th node. Consolidate and relocate driveways to 240th (helps meet signal warrants) a Packet Pg. 60 4.2.a Edmonds Highway 99 Community Renewal Plan Summary of Community Needs and Blight The following summary of community needs and blight is based on conversations with community members, local experts, and elected leaders, and findings of the consultant team documented in the Economic Profile, and Urban Design Analysis. Findings of blight listed below are organized to align with the categories listed in RCW 35.81.015. For more information see the Economic Profile (Appendix XX) and Urban Design Analysis (Appendix XX). Community Needs • Recreation and open space (park and/or indoor) • Safer and more comfortable pedestrian environment • Better street connections and mobility within the area • Better access to community services and service providers • Restrooms available for public use Findings of Blight • Physical dilapidation, deterioration, or obsolescence. Many buildings in the study area are more than 50 years old. The oldest buildings are generally located near the interchange, where there is a cluster of parcels assessed to be in "below normal' or worse condition by the county assessor. • Unsafe conditions. o Police incident reports show that a high proportion of crime in Edmonds happens in or near the study area, especially reported theft, domestic violence, malicious mischief, and other disturbances. o Vehicle collisions with other vehicles or persons are high along all of Highway 99 in Edmonds, including the study area. o The area has the highest concentrations of code enforcement reports in the city. o Areas with poor visibility around, between, and behind buildings, parcels and dead-end streets in the study area attract frequent unsafe activities. • Insufficient access to parks and open space. Most of the study area is greater than 1/4 mile from the nearest park. The only nearby city park offers limited amenities and open space. Community members lack access to nearby recreation facilities. The gap in parks access has been noted in multiple city plans. Inadequate street layout. Streets in the study area are widely spaced, impeding circulation and isolating businesses and E homes from each other. Spacing between signalized highway crossings are very wide: there is a o U 0.4-mile gap between crossings at 24411 St SW and 23811 St SW and a 0.7-mile gap between Q crossings at 238th St SW and 2281h St SW. There is an additional signal proposed at 234th St SW. v These gaps impede access to businesses and homes and create unsafe situations where w pedestrians risk their life by choosing to cross mid -block. Inadequate lot layout. W E The SR-104 and Highway 99 interchange is oversized, occupying a large amount of land in the southern portion of the study area. This under-utilized land creates areas with poor visibility that f° invite unsafe activity, interrupt walkability, and complicate vehicle access to nearby parcels. a • Excessive coverage. Surface parking and driveway coverage is extensive along the corridor, prevalent in older developments with inadequate or outdated stormwater treatment facilities. Packet Pg. 61 4.2.a Edmonds Highway 99 Community Renewal Plan Recommended Projects The following projects are recommended to improve blight conditions in the Highway 99 community renewal area. Each project relates to one or more tools, indicated in the chart below: • Community Renewal Area (CRA) • Tax Increment Financing (TIF) • Public -Private Partnership (PPP) • Reconnecting Communities Pilot (RCP) • Highway 99 Subarea Plan Mitigation (SAP -EIS) Project 1. Catalyst Public -Private Redevelopment 2. Access Improvements to parcels near interchange 3. Through -block Connections 4. Neighborhood Park 5. Green Streets 6. Business Revitalization 7. Interchange Replacement CRA TIF PPP RCP SAP -EIS • a Packet Pg. 62 4.2.a Edmonds Highway 99 Community Renewal Plan 1. Catalyst Public -Private Redevelopment Goal Partner with non-profit organizations and/or private developers to create a mixed -income housing development with community amenities including a park. Context Properties along Highway 99 hold potential to provide more housing and amenities for local communities. However, according to interviews with local developers, the local market has not matured as an attractive area for development, in part due to blighted conditions. A public -private partnership involving the city, private developers, and potential non-profit and agency partners could: Add to Edmonds' housing supply Create space for community amenities such as public restrooms, recreation facilities, affordable commercial spaces, or park space; and Provide a catalyst for future development by sending a message that the city is investing in the neighborhood. Implementation 1. Establish a community renewal area (see Community Renewal Law, above). This step will give the city greater flexibility in choosing development partners and site programming. 2. Identify potential sites in the study area for acquisition. Site selection criteria should include: 1) the site demonstrates blight conditions as documented in Appendix B: Urban Design Analysis, 2) the site is large enough to accommodate redevelopment that meets community needs, and 3) the future potential use at that location is aligned with Highway 99 Subarea plan goals. 3. Assess available city resources for acquisition and enter conversations with the property owner to purchase the parcel(s). If the property owner is uninterested in selling to the City at a reasonable market value, consider whether pursuing eminent domain is necessary or desirable to acquire the site. 4. Begin conversations with potential development partners, including non-profit organizations, public agencies, and private developers. a, 5. Acquire the site through purchase or condemnation. > 6. In collaboration with partner entities, develop a site program, master plan, and financing strategy. Ensure the master plan aligns with the subarea plan vision and creates new streets or through -block E connections (see 3. Through -Block Connections). v 7. Assess if access improvements, park/open space, green street features, and/or other streetscape a improvements are essential to parcel developability. If so, consider implementing a tax increment v area and financing program. (See Tax Increment Financing) -0 w 8. Develop a memorandum of understanding (MOU) that describes development plans and each r partner's roles and responsibilities. 9. Work with the partners to design, construct, and launch the redevelopment. c� Project CRA TIF PPP RCP SAP -EIS Q Catalyst Public -Private Redevelopment Packet Pg. 63 Edmonds Highway 99 Community Renewal Plan 4.2.a Case Study: Tukwila Village A useful case study is the Tukwila Village redevelopment in Tukwila, WA. In 1998 the City of Tukwila adopted the Pacific Highway Revitalization Plan, a subarea plan for the Highway 99 corridor. The plan documented blight conditions like those in the Edmonds study area: aging dilapidated buildings, a disproportionately high share of criminal incidents, unsafe road crossings, awkwardly shaped lots with oblique angle intersections, and vacant properties, and recommended actions to improve conditions. In 2000 the city adopted an urban renewal plan for the now -renamed Tukwila International Boulevard that built upon the earlier subarea plan. The City of Tukwila designated an urban renewal area of approximately 64 acres that included the most problematic sites. The renewal area allowed the City greater latitude to buy and condemn property and conduct site master planning. The City then acquired contiguous parcels totaling 5.76 acres and began working with developers, non -profits, and agency partners on development proposals for the site. Economic conditions and the 2008 recession caused several developers to withdraw their proposals, but ultimately the City executed an agreement with Senior Housing Assistance Group (SHAG), a senior housing non-profit, to develop the site. The City sold a key corner parcel to King County Library System (KCLS) to build a new library branch and supported creation of Spice Bridge, a global food hall by the non-profit Global to Local. Property acquisition, demolition, and site management cost the City approximately $9 million, of which approximately $5 million was recouped through property sales to KCLS and SHAG. The development delivered more than 400 units of mixed income housing and improved the vitality, aesthetics, and feeling of safety in the area. Figure 2. Aerial of Tukwila Village. Source: City of Tukwila Q Packet Pg. 64 Edmonds Highway 99 Community Renewal Plan 4.2.a 2. Access Improvements to parcels near interchange Goal Improve vehicular access to parcels negatively impacted by access constraints of Highway 99 and the SR- 104 interchange to increase feasibility of redevelopment, implement subarea plan goals, and help address blighted conditions. Context Stakeholder interviews along with the Economic Profile and Urban Design Analysis highlighted an infrastructure -related barrier to redevelopment in the southern portion of the study area. Turning movements to access properties along the corridor are either infeasible or result in dangerous driving movements. The Highway 99 Subarea Plan recommends access management improvements throughout the corridor which are being implemented in stages as part of the Highway 99 Revitalization corridor improvements project. Access to the parcels between 2401h St SW and 242nd St SW on the east side of the highway is particularly challenging and was called out for a new traffic signal and driveway consolidation in the subarea plan (transportation project 1-3). An interview conducted with the property owner indicated the limited turning movements at 24011 inhibit redevelopment of that site. Finding creative ways to improve access to parcels could also be an important part of Action 1. Catalyst Public - Private Redevelopment. Implementation 1. Assess the eligibility to use the following for Highway 99 access improvements near the SR 104 interchange: Project Figure 3. Right -in right -out turning movements provide access for parcels near SR-104 interchange o Tax -increment financing (See TIF Implementation). o Explore using community renewal powers to rearrange streets and rights of way. For example: consider reconnecting 242" St SW to adjacent commercial parcels to improve access. o Identify City resources available to support access improvements and achieve subarea plan EIS mitigation obligations. Access Improvements near SR-104 CRA TIF PPP RCP SAP -EIS Q Packet Pg. 65 Edmonds Highway 99 Community Renewal Plan 4.2.a 3. Through -Block Connections Goal Selectively create new public rights -of -way to improve access to businesses and homes on and around Highway 99 and promote walking within the study area. Context The Urban Design Analysis found that the wide and deep blocks in the study area contribute to blight by causing needlessly long travel distances, especially for pedestrians, and make it difficult to access many sites. Blocks in the study area vary in size, but a typical block is roughly 650 ft by 1000 ft, several times larger than blocks in downtown Edmonds. New street or pedestrian pathway connections could improve access from residences to businesses. Further, they could substantially improve pedestrian safety and experience by reducing the need to walk long distances along Highway 99 or traverse side streets that lack sidewalks. A 32p 1000 ft Ul Oil& �Mv Q Figure 4. Typical block size in Downtown Edmonds (left) and Highway 99 (right), some scale. Implementation 1. Assess potential locations for new through -block connections (TBCs) (see map on following page). Areas with existing clusters of retail businesses are good candidates. New connections could be pedestrian -only pathways or narrow streets. 2. If increasing zoning capacity in an area identified for TBCs, update code to require these connections when the property redevelops. 3. In areas where zoning capacity is not increasing, explore using community renewal powers to require through -block connections when properties redevelop. Considerations This strategy should also be used in as part of any public -private partnership redevelopment project. See Action 1. Catalyst Public -Private Redevelopment. Project Through -block connections CRA TIF PPP RCP SAP -EIS a Packet Pg. 66 Edmonds Highway 99 Community Renewal Plan 4.2.a Map 4. Potential Through -block Connections r + i _..I 71 " 1 -k 231 ST 5 4 } -_7 f - 1 238TH W Fr I 1 I� i FFr rrrr :. t r, •�• Through -block connection if redeveloped "'� ..... Study area 0100 500 1,000 Feet _IF 244TH-ST-SW � - Q Packet Pg. 67 4.2.a Edmonds Highway 99 Community Renewal Plan 4. Neighborhood Park Goal Address the gap in park access within the study area by creating a new public park. Context Limited access to parks and recreation spaces is a well-known issue for the study area. It was mentioned often during interviews with stakeholders, noted in the 2022 Parks Recreation and Open Space (PROS) plan, and has been often mentioned by the mayor and city councilmembers in public statements. The only nearby park within the City of Edmonds is Mathay-Ballinger Park, a small park with limited amenities and poor access. Parks are an important public amenity for residents and can help to encourage investments in property redevelopment. Figure 5. A neighborhood park with play equipment, trees, and bike parking in Boise, ID. Image source: MAKERS Implementation The Department of Parks, Recreation and Human Services is aware of this need and actively taking steps to identify and, if possible, purchase a site to create a community park. Additional park space was noted as a mitigation measure in the subarea plan EIS (see Highway 99 Subarea Plan EIS Mitigation) 1. Include a neighborhood park as an essential component of Action 1. Catalyst Public -Private Redevelopment. 2. Explore financing the neighborhood park through TIF funds. City will need to make a well - supported case that this improvement will significantly increase the likelihood and quantity of development. Project Neighborhood Park CRA TIF PPP RCP SAP -EIS a� E c� Q Packet Pg. 68 Edmonds Highway 99 Community Renewal Plan 4.2.a 5. Green Streets Goal Improve walking and biking conditions on streets near Highway 99 and reduce stormwater runoff from paved roads. Context Although sidewalks are continuous along Highway 99, they are missing on most other streets in the study area (see Map 5. Gaps in pedestrian network on next page). These gaps were highlighted in stakeholder interviews and in the Urban Design Analysis. Poor pedestrian connectivity on side streets exacerbates the overall pedestrian experience, which also suffers from widely spaced streets and an uncomfortable Highway 99 walking environment. With a relatively high and rising population density, and high -quality frequent transit service, streets that are safe and comfortable for walking and cycling are essential in this area. Figure 6. Missing sidewalks on local streets Image source: MAKERS. In addition to sidewalks and bike lanes, elements that improve walking/biking conditions include traffic calming treatments like speed humps, traffic diverters, street narrowing, curb bulb -outs at intersections, as well as wayfinding. Traffic calming infrastructure also can be installed in conjunction with green stormwater treatment features, providing the dual benefit of reducing stormwater runoff and increasing safety for road users. Green streets also serve as park -like spaces while full scale park investments are being acquired, designed, and built. Figure 7. Green streets treatments in Portland, Oregon. Image Source: Ryan Packer. Q Packet Pg. 69 4.2.a Edmonds Highway 99 Community Renewal Plan Map 5. Gaps in pedestrian network COUNTRY FARMS EDMONDS y High speed arterial Existing crosswalk LU A No crosswalk Missing sidewalk T ------• Sidewalk with frequent curb cots PUBLIC STORAGE - -- , , F F- F RMAD I LLO SELF 5TORAGE �CHC z WAL'K-IN CLINIC RACIPIC PARK o �o APARTMENT O- F-HOMES 7//F�4, HIRLY a0 BALLEDMONDS NCLUTHERAN ILER iiAVEP CHURCH NE II MANO x H r � I r PLAZA I TRAVEELODGE r ST FRgNEI TGOLDEN —M TEL WEST K&E r 7 —MOTEL I'V16TOR INN rT BURLINGT- N COAT F cTOI AURORAANTIQ E PAVI IION PARK -LINGER- 7 1010 p1_ __ I_ NOW 1b, L ff _ ��SHORELINE Q Packet Pg. 70 4.2.a Edmonds Highway 99 Community Renewal Plan Implementation 1. Pursue the creation of a green streets program through the 2024 Comprehensive Plan and Transportation plan updates. This includes community engagement and designation of a green streets network that complements the City's roadway function classification, walkway plan, and bicycle plan. 2. Include implementation of the green streets program as a mitigation measure for transportation and stormwater impacts of new development in the upcoming SEIS for the Highway 99 Subarea Plan. Project Green streets CRA TIF PPP RCP SAP -EIS • 0 40 r c E t U R Q Packet Pg. 71 Edmonds Highway 99 Community Renewal Plan 4.2.a 6. Business Revitalization Goal Help unique local businesses contribute to a safer, more attractive, and resilient Highway 99 through grants, loans, or other financial support. Context Highway 99 boasts many local businesses that serve diverse communities in Edmonds and beyond. Relatively affordable rents and transportation connections to nearby cities have made Highway 99 an attractive place for many immigrant communities and small, local, independent businesses to get their start. However, these businesses are at risk of displacement, with some buildings in poor condition and the City's focus on catalyzing redevelopment. Loss of cultural anchors like Figure 8. Business signs in the study area. Image source: MAKERS minority -owned businesses would damage the resilience of language and nationality -based communities and be a significant cultural loss of the area's rich diversity. Business revitalization actions seek to leverage local businesses to contribute to community renewal, rather than increase the threat of their displacement and replacement. Most business owners would prefer a safer, more attractive, and economically vibrant neighborhood, but are understandably wary of the higher rents this could bring. Grants that support building maintenance and aesthetic improvements create jobs for vulnerable community members, build social capital among vulnerable communities, and could help harness Highway 99's great strength in diverse businesses as leverage for renewal efforts. Implementation 1. Create a Community Renewal Area to empower the City of Edmonds to provide financial assistance to businesses negatively impacted by community renewal actions, or that create or maintain jobs for working-class employees per RCW 35.81.070. 2. Work with community stakeholders to establish a program to provide loans or grants to small businesses or property owners in the area. Eligible uses of the grant program should be clearly defined and may include: o Maintenance or repairs to dilapidated buildings or commercial spaces, o Compensation for business disruptions from construction of public improvements, or o Relocation assistance in the event of redevelopment. Consider requiring inclusion of ground floor retail and prioritizing local businesses and businesses that primarily serve vulnerable communities in public -private -partnership redevelopment projects in the community renewal area. See Action 1. Catalyst Public -Private Redevelopment. Project Business Revitalization CRA TIF PPP RCP SAP -EIS Q Packet Pg. 72 Edmonds Highway 99 Community Renewal Plan 4.2.a 7. Highway 99 Interchange Replacement Goal Improve safety, walkability, and increase land value by reconnecting the areas surrounding the Highway 99/SR 104 interchange. Context Two large freeway style interchanges at the southern end of the study area, at the intersection of Highway 99 and SR 104, create a large gap between active land uses in the study area and impede walkability. The interchange ramps offer no safe pedestrian crossing, and the journey on foot across the interchange is uncomfortable and noisy. The interchange interrupts the street grid, making it more difficult to access properties on either side of the interchange, leaves behind little -used dead-end streets and fragments of unused right of way, which attracts undesirable activities including dumping of waste and illegal camping. Figure 9. The Highway 99/SR 104 interchange creates vast, pedestrian -hostile "dead zones" Image source: MAKERS Despite this land -intensive highway infrastructure, the interchange sees only moderate traffic volumes, similar to arterial intersections controlled by traffic signals (see table below). Intersection Location Hwy 99/SR 104 Edmonds, WA Hwy 99/N 1451" St Shoreline, WA Hwy 99/196t" St SW Lynnwood, WA Type Arterial 1 volume (AADT 2022) Cloverleaf--30,000 (Hwy 99) Signalized--30,000 (Hwy 99) Signalized--33,000 (Hwy 99) SR 527/208t" St SE North of Bothell, WA Signalized --40,000 (SR 527) SR 522/NE 145 St Seattle, WA Signalized --33,000 (SR 522) Source: WSDOT Traffic Count Database System link Arterial 2 volume (AADT 2022) --25,000 (SR 104) —21,000 (1451" St) —26,000 (1961" St) --19,000 (2081" St) --27,000 (145t" St) Transforming the Highway 99/SR 104 interchange into a signalized intersection offers the opportunity to improve minimize the divide between residential neighborhoods on the east and west side of Hwy 99 and connect them to retail, commercial, and community amenities along the corridor. It will also create land for redevelopment and community open space. Implementation 1. Work with elected official and local partners to apply for a planning grant through the federal Reconnecting Communities Program to study revisions to the interchanges. a Packet Pg. 73 4.2.a Edmonds Highway 99 Community Renewal Plan Considerations • This grant requires a minimum 20% local match (which can be met with CDBG funds), so it will be important to proactively plan for funding. • Eligible activities under a planning grant include community engagement, traffic and feasibility studies, conceptual and preliminary engineering, planning for zoning adjustments and transit - oriented development, and other related efforts. • Census tracts 509 in Edmonds and 203 immediately to the south in Shoreline are classified as Historically Disadvantaged Communities (HDC), which will bolster the application's score. Project CRA TIF PPP RCP SAP -EIS Business Revitalization 244TH�T4LV — — — illllfw �... - -- -- - -- - --- � 19 y 0 0 10D 500 1,000 Feet LV W Figure 10. Hwy 99/SR 1041244111 St SW interchange complex and rights -of -way. Image source: MAKERS. GIS Data source: t City of Edmonds. Q Packet Pg. 74 Edmonds Highway 99 Community Renewal Plan 4.2.a Supporting Documents Appendix A: Economic Profile Appendix B: Urban Design Analysis Appendix C: Updates to the Highway 99 Subarea Plan Appendix D: Focus Group Notes Appendix E: Summary of Community Renewal Area Powers Q Packet Pg. 75 Edmonds Highway 99 Community Renewal Plan 4.2.a Appendix A: Economic Profile M a. o: w E E 0 U t r c E t U R Q Packet Pg. 76 ECONorthwest 4.2.a ECONOMICS • FINANCE • PLANNING TO: MAKERS and the City of Edmonds FROM: Lorelei Juntunen, Jennifer Cannon, Ryan Knapp, ECONorthwest SUBJECT: Economic Profile, Highway 99 Community Renewal/Revitalization Plan, City of Edmonds Section 1. Introduction In partnership with the City of Edmonds, a consultant project team, led by MAKERS and supported by ECONorthwest is assisting the City of Edmonds with community planning for the Highway 99 Neighborhood. Edmonds is located north of the City of Seattle and south of the City of Everett in the southwest corner of Snohomish County and along the Puget Sound waterfront. By 2022, the City of Edmonds became the third most populated town in Snohomish County with an estimated 42,980 persons.' Edmonds is composed of an array of distinct neighborhoods. The Highway 99 Corridor, located along the southeastern edge of Edmonds, around an unincorporated portion of Snohomish County (referred to as Esperance), supports a variety of commercial and residential uses. This economic profile examination provides market, demographic, employment, business/land use, and other data that help MAKERS and the city of Edmonds contextualize the study area and understand the existing conditions of the built environment. It offers foundational information useful for exploring different community revitalization planning tools and strategies. This memorandum is split up into three sections including: An Introduction (1), provided in this section, highlighting the purpose of this Economic Profile, 2. The Economic Profile section (2) provides a summary of economic conditions of the Highway 99 Neighborhood study area and describes the community characteristics, existing land development and vacancies, existing businesses in the area, and market considerations (vacancy rates, rent changes). 3. The last section (3) provides an overview of key Community Revitalization Tools. Key findings and guidance on general strategies are bolded in the following sections. ' Washington Office of Financial Management, April 1, 2022, Population of Cities, Towns, and Counties. Data retrieved and accessed at the following address: https://ofm.wa.gov/washington-data-research/population- demographics/population-esti mates/historical-estimates-april-1-population-and-housing-state-counties-and-cities a ECONorthwest I Portland I Seattle I Los Angeles I Eugene I Boise I econw.com Packet Pg. 77 4.2.a Section 2. Economic Profile This section summarizes the community characteristics, existing land development and vacancies, existing businesses in the area, and market considerations (vacancy rates, rent changes). It includes a summary of economic conditions and opportunities. To understand the broader demographic change in the Edmonds Highway 99 Study Area (referred to as the "Study Area" throughout the report), we analyzed two Census tracts, 508 and 509, in Snohomish County. The defined geographic boundaries of these tracts have not changed over the past twenty years, which makes it possible to determine how population characteristics, such as age, race and ethnicity, and median household income, have shifted over time (such as over the last decade or last two decades). Where possible, we included additional demographic data for Census block groups and Census block data. Block groups are sub -geographies of Census tracts, and blocks are sub -geographies of block groups. While these two geographic specifications allow for analysis that more closely align with the Edmonds Highway 99 study area boundary, their data is less precise than Census tracts and their boundaries change with each Decennial Census survey, making it difficult to compare demographic change over time. As such, we only included 2020 ACS 5-year estimates for Census block group and block data for data elements that were readily made available by the U.S. Census Bureau.Z 2 Note: At the Census tract, block group, and block specifications, only 2020 5-year American Community Survey (ACS) data are available. These data estimates are comprised of single -year ACS data (2016, 2017, 2018, 2019, and 2020), which are averaged to produce more statistically robust estimates. ECONorthwest a Packet Pg. 78 4.2.a Exhibit 1. Map of Edmonds Study Area Boundary, Census Block Groups, and Census Tracts Used in the Economic Profile Analysis, 2022 Source: ECONorthwest. Community Demographic Profile 3 The community demographic profile compares community characteristics of the project study area residents in the neighborhood area (which will include some areas outside of the study area, not an exact representation) with the whole area of the City of Edmonds and Snohomish County residents. E E 0 Change in Total Population and Housing Units a The population residing in the City of Edmonds and the Highway 99 Study Area has grown U slightly over the last several decades, increasing from 39,544 persons in 2000 to 42,853 persons 'a in 2020. The average annual growth over this period has been around 0.4 percent which is less than the 1.6 percent rate of growth in Snohomish County. Overall growth has been slower in the E City of Edmonds and in the Highway 99 study area compared to the county. Housing has increased at a similar rate (see Exhibit 3 for housing unit change). a ECONorthwest Packet Pg. 79 4.2.a Exhibit 2. Change in Population Comparison, 2000-2020 Source: Washington Office of Financial Management. Population Change, 2000- Population Count 2020 Diff. Pct Chg AAGR 2000 2010 2020 1,053 12% 0.6% Study Area (Census 9,052 9,330 10,105 tracts) Census Tract 508 5,908 6,104 6,721 813 14% 0.6% Census Tract 509 3,144 3,226 3,385 241 8% 0.4% City of Edmonds 39,544 39,709 42,853 3,309 8% 0.4% Snohomish County 606,024 713,335 827,957 221,933 37% 1.6% Washington 5,894,143 6,724,540 7,707,047 1,812,904 31% 1.3% Exhibit 3. Change in Housing Unit Comparison, 2000-2020 Source: Washington Office of Financial Management. Housing Unit Change, 2000- Housing Unit Count 2020 2000 2010 2020 Diff. Pct Chg AAGR Edmonds Highway 99 Study Area (Census 3,884 4,172 4,307 423 11% 0.5% tracts) Census Tract 508 2,483 2,624 2,750 267 11% 0.5% Census Tract 509 1,401 1,548 1,557 157 11% 0.5% City of Edmonds 17,519 18,378 19,305 1,786 10% 0.5% Snohomish County 236,205 286,659 321,523 85,318 36% 1.6% Washington 2,451,081 2,886,948 3,202,239 751,158 31% 1.3% Change in Race and Ethnicity Over the last decade, Edmonds has become more diverse as observed by increases in the share of total Hispanic, multiracial, Black, and Asian persons over the last decade. By 2020, the Highway 99 study area became much more diverse than the City of Edmonds (with a smaller White population, for example) but has a similar race and ethnicity composition as the broader County (see Exhibit 5). 4 ECONorthwest 2 a Packet Pg. 80 4.2.a In the Study Area, the racial and ethnic composition has become more diverse over the 2010 to 2020 period with the share of White residents decreasing by nine percentage points, from 71 percent in 2010 down to 62 percent in 2020. At the same time, the share of the Hispanic population increased by two percentage points, the share of the multiracial population increased by three percentage points, and the share of Black and Asian populations increased by one percentage point each. The Study Area is more racially and ethnically diverse than the City of Edmonds as a whole. The Study Area is roughly comparable to Snohomish County's distribution, with a slightly higher share of Black and Asian residents than the County, and a lower share of Hispanic residents than the County. Exhibit 4. Race and Ethnicity, Study Area, 2010-2020 Source: U.S. Census Bureau, 2006-10 and 2016-2020 ACS 5-year estimates. Data note: All race categories shown are "non -Hispanic" persons. Persons who identified as Hispanic could be of any race (one race, or multiple). Hispanic White Other Race Multiracial Native Hawaiian or Pacific Islander Black Asian American Indian or Alaska Native 0% 20% 40% 60% Percent Share of Total Population Exhibit 5. Race and Ethnicity Comparison, 2020 Source: U.S. Census Bureau, 2016-2020 ACS 5-year estimates. 71% ■ 2010 2020 i� 10% Hispanic = 62% White 1% Other Race 7% Multiracial 1% Native Hawaiian or Pacific Islander 5% Black 13% ■ Edmonds Study Area Asian City of Edmonds 1% ■ Snohomish County American Indian or Alaska Native z Washington 80% Q 0% 20% 40% 60% 80% Percent Share of Total Population 5 ECONorthwest Packet Pg. 81 4.2.a orthwest c c� a R 3 a� c m E E 0 U rn rn cv 3 a� x a Packet Pg. 82 4.2.a Age Distribution The City of Edmonds supports a large population of older adults and retired persons. The City has a larger older adult population (aged 65 or older) than both Snohomish County and Washington State. In contrast with the City, the Highway 99 study area supports a younger population and as of 2020, the study area has a larger population aged 35-49 years than all the other comparison areas (24 percent). As shown in the exhibit below, nearly two-thirds (65 percent) of the Study Area population are between the ages of 20 to 64 years old (as of 2020) which is a higher share than the City (58 percent), Snohomish County (62 percent), and the state (60 percent). Exhibit 6. Age Distribution Comparison, 2020 Source: U.S. Census Bureau, 2016-2020 ACS 5-year estimates. Washington Snohomish County City of Edmonds Edmonds Renewal Area (Census Tracts) ECONorthwest 24% 22% 20% 7-KI ff� 0% 20% 40% 60% 80% 100% Percent Share of Total Population ■ Under 20 20 to 34 ■ 35 to 49 50 to 64 65 to 74 75 and Older 7 Q Packet Pg. 83 4.2.a The median age for Study Exhibit 7. Median Age Comparison, 2000-2020 Area is lower than the City of Source: U.S. Census Bureau, 2000 Decennial Census and 2016-2020 ACS 5- year estimates. Edmonds' median age of 45 Median Age Change, 2000 - years in 2020. Census Tract 2020 509 has a much lower 2000 2020 Diff. % Change median age of 37.3 years Census 39.5 42.0 2.5 6.3 than the City, indicating a Tract 508 younger overall population Census 36.0 37.3 1.3 3.6 residing in this area, Tract 509 compared to the City. City of 42.0 45.0 3.0 7.1 Edmonds Snohomish County Washington Household Tenure and Composition 34.7 38.0 35.3 37.8 3.3 9.5 2.5 7.1 In the Study Area, the share of renter -occupied households (36 percent) is consistent with the statewide average (37 percent). However, other comparison geographies, like the City of Edmonds and Esperance, have a lower share of renter -occupied households. In the Study Area block groups (see Exhibit 8), the share of renter -occupied units is the highest relative to all comparison geographies. This is partially due to the tighter geographic specification around the Hwy 99 Corridor (which excludes the northwestern reaches of Esperance), in addition to the inclusion of the block group in King County. Exhibit 8. Tenure Comparison, 2020 Source: U.S. Census Bureau, 2016-2020 ACS 5-year estimates. Washington Snohomish County Esperance City of Edmonds Study Area (Block groups) Study Area (Census tracts) 09/. 20% 40% 60% 80% 100% Share of Total Occupied Housing Units ■Renter -occupied ■Owner -occupied ECONorthwest 8 c M IL 3 as m c E E 0 0 CD CD M 3 z 'x Q Packet Pg. 84 4.2.a Exhibit 9 (below) provides a comparison of the household composition between the Study Area, the City of Edmonds, Esperance, Snohomish County, and the State of Washington. Non -family households (including single person households or unrelated persons living together) constitute a larger share in the study area (42 percent) even higher than the City of Edmonds and the county. The share of married couple families is smaller in the study area than in the City, County, and state. A married couple is a husband and wife enumerated as members of the same household. The married couple may or may not have children living with them. Overall, this indicates that there tend to be smaller sized households in the Study Area than in all the comparison areas. Exhibit 9. Household Composition Comparison, 2020 Source: U.S. Census Bureau, 2016-2020 ACS 5-year estimates. Washington Snohomish County Esperance City of Edmonds Study Area (Census tracts) 0% 20% 40% 60% 80% 100% Percent Share of Total Households ■ Married -couple family Male householder, no spouse ■ Female householder, no spouse Non -family household, living alone Non -family household, not living alone Q 9 ECONorthwest Packet Pg. 85 4.2.a Household Income The median household income of households in Census Tract 508 (the tract associated with Esperance) increased by about 21 percent over the 2000 to 2020 period, after adjusting for inflation. However, the median household income in Census Tract 509 decreased slightly, by about four percent over the same time frame. Census Tract 509 has the lowest median household income ($62,560) compared to all geographies analyzed, while Census Tract 508 has the highest median household income. Educational Attainment Educational attainment in the Study Area has increased over the past twenty years. The share of residents holding at least a Bachelor's degree increased by nearly eight percentage points, from 29 percent in 2000 up to 37 in the 2020 period. ECONorthwest Exhibit 10. Change in Median Household Income (2020 Inflation -adjusted Dollars), 2000-2020 Source: U.S. Census Bureau, 2000 Decennial Census and 2016-2020 ACS 5- year estimates. Median Household Income 2000 2020 Census $83,537 $101,350 Tract 508 Census $65,469 $62,560 Tract 509 City of $83,146 $91,499 Edmonds Snohomish $82 428 $89,273 County Washington $71,112 $77,006 Change, 2000 - 2020 Diff. % Chan 17,813 21.3 (2,909) (4.4) 8,353 10.0 6,845 8.3 5,894 8.3 Exhibit 11. Change in Educational Attainment in the Study Area (Census tracts 508 and 509), 2000-2020 Source: U.S. Census Bureau, 2000 Decennial Census and 2016-2020 ACS 5- year estimates. 2020 27% 2000 8=s 27% 27% 8% 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Share of Population 25 Years and Older ■ Less than High School ■ High School orGEO ■ Some college, nodegree ■A$ociate'sdegree Bachelors degree ■GraduamorProfessional degree 10 c M IL M m .E E E 0 0 o� o� 3 z a� x r Q Packet Pg. 86 4.2.a Comparatively, both Study Area specifications (tract and block group aggregations) had a lower Bachelor's degree (or higher) attainment than the City as a whole (37 percent for tracts and 41 percent for block groups relative to 49 percent for the City). However, the Study Area is on -par with the statewide average, and higher than the countywide attainment rate of Bachelor's degrees or higher. Poverty Status Exhibit 12. Educational Attainment Comparison, 2020 Source: U.S. Census Bureau, 2016-2020 ACS 5-year estimates. Washington 23% Snohomish County M� 22% 1% Esperance 29% City of Edmonds 33% Study Area (Block groups) 29% Study Area (Census 27% tracts) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Share of Population 25 Year and Older ■ Less than High School High School or GED ■ Some college, no degree • Associate's degree Bachelor's degree • Graduate or Professional degree The poverty rate of persons living in the Study Area increased by two percentage points over the 2000 to 2020 period, from six percent up to eight percent. The Study Area's poverty rate is comparable to Snohomish County's poverty rate (eight percent versus seven percent, respectively), but higher than the City of Edmonds as a whole (eight percent versus five percent, respectively). Over the 2000 to 2020 period, the poverty rate in the Study Area increased by two percentage points, from six percent in 2000 to eight percent in 2020. This shows that the prevalence of poverty has increased in the Study Area and could mean that the area is increasingly serving a very low-income population. ECONorthwest Exhibit 13. Change in Poverty Status in the Study Area (Census Tracts 508 and 509), 2000-2020 Source: U.S. Census Bureau, 2000 Decennial Census and 2016-2020 ACS 5- year estimates. 2020 2010 2000 M 0% 20% 40% 60% 80% 100% Share of Population for Whom Poverty Status is Determined ■ Below Poverty Level At or Above Poverty Level 11 Q Packet Pg. 87 4.2.a Relative to comparison geographies, the poverty rate of the Study Area was on -par with Snohomish County, but higher than the City of Edmonds poverty rate during the 2020 period. Exhibit 14. Poverty Status Comparison, 2020 Source: U.S. Census Bureau, 2016-2020 ACS 5-year estimates. Washington M M d Snohomish County Esperance M City Edmonds Study Area (Census tracts) 0% 201% 40% 60% 80% 100% ■ Below Poverty Level At or Above Poverty Level Existing Development and Business Trends This section provides an overview and summary of commercial property characteristics in the Study Area. According to Snohomish County Assessor data for tax year 2022, 277 parcels were contained in the Study Area. ■ In the Study Area, 10 parcels were designated as undeveloped/vacant land, totaling about 349,900 square feet. ■ Of the 277 total parcels, 66 parcels (24 percent) were designated commercial, and 199 parcels were designated residential (72 percent). ■ One parcel was designated government property (i.e., exempt), with a use code of Freeways. ■ In the map shown on the right, the red area (indicator 1) contains six vacant parcels with a total assessed value of about $1.7 million in tax year 2022 (3.02 acres). ESPERANCE )UNINCORPORATED) N� —1,.: -, q- - — - r 6 \ 3 1 -- 1 _7 - - ■ The burned -out building in the grey area (indicator 2) had a total assessed value of about $1.07 million in tax year 2022. It's approximately 39,160 square feet (0.9 acres). ■ The red area (indicator 3) contains the former Burlington Coat Factory establishment (which recently went out of business) and many other commercial retail outlets. This parcel ECONorthwest 12 a Packet Pg. 88 4.2.a has a total assessed value of about $8.3 million and is approximately 238,500 square feet (5.5 acres). All commercial properties in the Study Area had a total assessed value of about $124.8 million in tax year 2022 (Exhibit 15). About 42 percent of the total assessed value for commercial parcels comes from the retail trade sector with a total assessed value equaling about $52.4 million. The largest retail trade property is located at 23632 Hwy 99, which includes the Aurora Marketplace, Safeway, T.J. Maxx, and many other retail outlets. In total, it's about 328,198 square feet (or, 7.5 acres). It comprises about 31 percent of all retail trade square feet in the Study Area, and it accounts for about 37 percent of the total retail trade assessed value ($19.6 million). The second largest share of assessed value comes from motor vehicles and automobile repair shops at about $19.2 million (or roughly 15 percent of the Study Area's total assessed commercial value). Just south of Edmonds Way, the Campbell Nissan of Edmonds and the Campbell Volkswagen of Edmonds establishments comprise a total assessed value of about $13.8 million (4.47 acres), the largest share among all motor vehicle and automobile repair shop parcels in the Study Area. Other professional and business services made up approximately $9.4 million of the Study Area's commercial assessed value (7.5 percent of the total), and hotels made up about $9.2 million (7.4 percent of the total). Exhibit 15. Summary of Business Parcels in Study Area, Tax Year 2022 Source: Snohomish County Assessor Data, Tax Year 2022. Count of Commercial Use Code Parcels in Study Area Percent Share of Total Parcels Parcel Square Feet Total Assessed Value of Parcels Hotel / Motel 6 9% 167,563 $9,190,100 Commercial 2 3% 22,970 $637,000 Condominium Services Motor Vehicles / 12 18% 346,283 $19,171,900 Automobile Repair Restaurants 6 9% 203,278 $8,624,000 Banking 2 3% 75,721 $2,895,700 Warehousing 1 2% 182,124 $7,699,000 Medical and Other 2 3% 119,149 $11,123,000 Health Services Nursery, Primary, and 1 2% 40,553 $2,240,000 Secondary Schools Sports Activities 1 2% 44,422 $1,380,000 Other Professional and 10 15% 178,513 $9,373,200 Business Services Retail Trade (Total) 23 35% 1,074,189 $52,442,200 ECONorthwest 13 a Packet Pg. 89 4.2.a Automotive Retail 3 5% 70,803 $2,767,000 Food Retail 1 2% 22,284 $1,215,200 Apparel and 6 9% 304,209 $11,083,100 Accessories Retail Other Retail 13 20% 676,892 $37,377,100 Total 66 100% 2,454,765 $124,776,100 Hotels and Motels in the Study Area According to Costar, there are seven total hospitality establishments in the City of Edmonds, four of which are in the Study Area.3 Most of the hotels in the Study Area were built in the 1950's. The Travelodge is the Study Area's most recently built hotel establishment, which opened in 1990. Exhibit 16 shows the year built, number of rooms, and finish -level' of the hotels located in the Study Area and the City of Edmonds. In total, Costar estimates 332 hotel rooms are available in the City of Edmonds, 42 percent of which (140 rooms) are in the Study Area. Exhibit 16. Summary of Hotel Establishments in the Study Area, as of August 2022 Source: Costar. Hotel Name Number of Rooms Year Built Finish - Level Edmonds Study Area Hotels 140 Golden West Motel 25 1952 2-star K & E Motor Inn 32 1957 2-star St Francis Motel 26 1950 2-star Travelodge Seattle North Edmonds 57 1990 2-star Other City of Edmonds Hotels 192 Andy's Motel 47 1948 2-star 3 This information could be supplemented by engagement findings on cultural business anchors and BIPOC businesses. Costar data caveats: Hotel Occupancy, Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) for the properties you have selected are comprised of a Weighted Submarket Average. Each hotel in the set is given the performance of the industry segment and weighted by its own rooms supply. This ensures a representative view of the selected hotels' performance while protecting the confidentiality of individual hotel data, while also allowing for grouping of any set of hotels without restriction. All other non -confidential measures are reflective of the exact property set selected. 4 CoStar's Building Rating System "is a national rating for commercial buildings on a universally recognized 5 Star Scale." A two -star commercial property is deemed as such by meeting the following criteria: low concentration of retail tenants in its proximity, it's made of lower cost materials, the property is older, it has little to no landscaping, it has a functional design, it has no certifications, and it has no apparent access strategy (i.e., it's difficult to access and has sub -optimal signage). More information about CoStar's rating system can be reviewed at the following web address: https://www.costar.com/docs/default-source/brs-lib/costar_buildingratingsystem- definition.pdf?sfvrsn=12a507a4_2 ECONorthwest 14 Q Packet Pg. 90 4.2.a Best Western Plus 91 1983 3-star Americas Best Value Inn 54 1997 2-star Total Hotel Rooms in City of Edmonds 332 Total Hotel Rooms in Snohomish 6,950 Countv Exhibit 17 (below) shows the changes in hotel occupancy from 2015 to mid 2022 for the four hotels/motels in the study area. The hotel occupancy in the winter months (November through February) tended to be the lowest occupancy rate each year. During the summer months (June through September), hotel occupancy is often at its highest. Once the COVID-19 pandemic emerged hotel occupancy hit a low of 38 percent in April 2020. Since then, occupancy has remained lower than historical trends, but as of June 2022, occupancy reached about 80 percent, which is on -par with peak seasonal occupancy in pre -pandemic years. Exhibit 17. Change in Study Area Hotel/Motel Occupancy, January 2015-June 2022 Source: Costar. 100% COVID-19 Pandemic 90% Begi n s 80% v T 0 70% Q U p 60% E 0 50% 0 = 40% 0 � 30% 20% 10% 0% Lo m in 0 O (0 ti ti r— W W W COO O M O O O O O .--I .—I O c0 c0 N N U Q v < v v Q Q -Study Area City of Edmonds a W Longer term occupancy information describing weekly or monthly occupancy trends was not available in the Costar data. This information could help detect whether hotels are being used as E a source of housing. Hotel rooms can be a source of rental housing for some individuals and families. Even though weekly motel rental rates may be more expensive than rental costs for a apartments in some cases, some residents are forced to choose motels due to a lack of sufficient 15 ECONorthwest Packet Pg. 91 4.2.a savings to pay for security deposits or poor credit history, while others may choose motel rooms for lifestyle reasons or due to disabilities.' The City should recognize the current role that the study area hotels/motels are playing in emergency housing in their current form. The city could intervene to better support this current function by working directly with hotel/motel owners, or they could prioritize acquiring the properties to convert to long-term affordable housing or to maintain them more directly as emergency short-term housing. The answers to this approach should depend on their overall need for short-term emergency shelters, their ability to prioritize limited resources for acquisition, and the degree to which the current operations are affecting the redevelopment opportunities and neighbors in the area. Market Dynamics This section provides a summary of the market conditions relevant to the project area to help describe the range of development projects in demand or needed by the existing community Commercial Properties Triple -net retail rents' generally fluctuated in the Study Area from 2010 to 2021, reaching a low of $13.91 in 2014. During 2020 and 2021, triple -net rents remained at a stable $26.51. However, as of July 2022, rents decreased to $20.00 in the Study Area, a 25 percent decline from the two years prior. Exhibit 18. Change in Triple -Net Retail Rents, 2010-July 2022 Source: Costar. Data note: The triple -net retail rents are reported in nominal terms, and thus, are not adjusted for inflation. $35.00 $30.00 $25.00 $20.00 Z Z $15.00 z $10.00 $5.00 $0.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2 —Study Area City of Edmonds —Snohomish County 6 (1) Rangel, Britt Kennerly, and Isadora. Invisible homelessness: How families end up living at hotels on the Space Coast. Florida Today, April 23, 2020. httl2s://www.floridatoday.com/in-depth/news/2020/02/13/invisible- homelessness-how-families-end-up-living-hotels-space-coast/2600594001/. (2) Turcato, Megan. "Vernon, B.C. Families Living in Motels Due to Lack of Housing." Global News. Global News, February 21, 2022. https:Hglobalnews.ca/news/8632397/vernon-b-c-families-motels-housing/. 6 Triple -Net (NNN) lease agreements are leases where a tenant is responsible for paying all expenses of the property they lease, including building maintenance, building insurance, and real estate taxes. ECONorthwest 16 Q Packet Pg. 92 4.2.a Retail vacancy rates steadily declined in the Study Area from 9.2 percent in 2012 down to 0.3 percent in 2018, a decrease of nearly 9 percentage points! Since then, vacancies have increased and hovered between two and three percent. As of July 2022, vacancies in the Highway 99 Study Area were about 1.8 percent. Exhibit 19. Change in Retail Vacancies, 2010-July 2022 Source: CoStar. 12.0 % 10.0% 8.0% U 6 6.0% m m 4.0% 2.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD (July) —Study Area City of Edmonds —Snohomish County Discussion on the Economic Opportunities Associated with Commercial Redevelopment The data analysis shows a decline in Study Area retail rents which could indicate a decline in demand for commercial space and signify a distressed market. This is not surprising considering the changes in the neighborhood associated with the abandonment of businesses, vacant buildings, and vacant underutilized parcels in the study area. Should economic development be a priority for this area, the City should consider mixed -use development providing the community with desired amenities. Each mixed -use redevelopment should tailor their retail mix and amenities to meet the needs of their community and provide distinct localization. The ideal mixture of uses should be studied further. If the mixture of uses includes a community facility, there are considerations to address including an analysis of the site factors that will influence the facility use (such as access, proximity to complementary uses, infrastructure, and utilities, etc.). The size, location, and retail mix of a commercial location matter. For consumers, time and distance are the primary determinants of shoppers' willingness to patronize a particular center. Households are not generally willing to travel past (or further than) a comparable or superior center. The commercial/retail center must provide a competitive retail mix to attract a large consumer base. In addition, they must now compete with the growing prevalence of the e- commerce sector, especially since the COVID-19 pandemic emerged. E-commerce has led to additional impacts to traditional retail establishments particularly those unable to compete with the prices and convenience offered from online shopping. Particularly since the COVID-19 7 Vacancy Rates: Represent how much space on a per sf basis is vacant in a submarket. ECONorthwest 17 a Packet Pg. 93 4.2.a pandemic, some car dealerships experienced changes with buyers moving away from traditional dealerships in favor of the convenience of the internet, offering short transactions, easy financing, vehicle delivery and even the ability to return cars if it doesn't work out. In some cases, these changes can lead to downsizing dealership properties. However, online information has limitations and a consumer buying a major investment might want to have someone trustworthy to provide certainty regarding their purchase. Consequently, it is too soon to tell how online car sales will change the car dealership space.' In addition, different dealerships might own or lease properties and if a dealership leases a property, the term of the lease could vary. The City should consider specific outreach focused on understanding the position of each dealership in the Study Area. Recent retail trends suggest dramatic shifts occurring in the suburbs — especially around suburban shopping centers and malls. Demand for urban style living and experiential and entertainment retail is increasing. This includes a growing food and beverage sector, as well as museums and art. As big box stores continue to close, developers seek to transition these large empty spaces into urban lifestyle hubs. As parking requirements are increasingly relaxed by jurisdictions, outdated and struggling malls are increasingly transitioning into mixed -use redevelopments and further encouraged and integrated into the surrounding suburban residential communities. According to CBRE, retail -only centers may no longer be the highest and best use for many outdated or struggling malls.' Malls and oversized retail centers are well positioned to transform into mixed -use town centers that provide a community with many opportunities and amenities where people want to live, work, and play. Successful mixed -use redevelopments integrate new uses beyond traditional multifamily residential, office, and hotels. Uses such as co -living, coworking, recreational and entertainment, public event space, and green space are complementing shopping and dining destinations, creating dynamic suburban environments and integrated communities. There is no existing prescribed mixed -use solution to apply to every mixed -use redevelopment. Multifamily Rents and Vacancies Rising rents coupled with a moderate vacancy rate and the limited new multifamily construction in the past decade could signal a constrained market supply and possible future demand for more multifamily housing in the study area community. a s https://www.automotiveworld.com/articles/the-pandemic-changed-the-vehicle-business-but-dealers-are-here-to-stay/ 9 CBRE. 2020. 2020 U.S. Real Estate Market Outlook. Retrieved from https://www.cbre.us/research-and-reports/2020- US-Real-Estate-Market-Outlook-Retail 18 ECONorthwest Packet Pg. 94 4.2.a Similar to other cities in the Exhibit 20. Change in Multifamily Asking Rents, 2010-July region, multifamily asking 2022 rents in the Study Area have Source: Costar. Data note: The multifamily unit rents are reported in nominal terms, and thus, increased 112 percent over are not adjusted for inflation. the past thirteen years, from $2,500 $770 in 2010 to about $1,636 in July of 2022 (an increase of E $2,000 $866). a c $1,500 At the same time, multifamily asking rents in the City of $1,000 Edmonds increased by $790, or 86 percent, over the 2010 $500 to July 2022 period. County- wide, asking rents increased $0 by 91 percent (or, $911 ), 2010 2011 2012 2013 Zola 2015 2016 2017 2018 2019 2020 2021 202D2 from $996 in 2010 to $1,907 (July' —Study Area City of Edmonds —Snohomish County in July of 2022 Multifamily vacancy rates Exhibit 21. Change in Multifamily Vacancy Rates, 2010-July a have generally trended 2022 + downward in the Study Area, Source: CoStar. Q 8.0% from a peak of nearly 7 z percent in 2011 down to 7.0% almost 3 percent in July of 6.0% a 2022. Generally, a healthy 5.0% 3 multifamily market will have , 4.0% a vacancy rate between 5 and 3.0% > 7 percent. Rates lower than 2.0% E this suggests a constrained 1.0% E market supply and upward o0% 0 pressures On rents. Rates 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD a higher than 7 percent can Juiy' —Study Area City of Edmonds —Snohomish County V indicate a weak market or an w over -supply of units. W E The City of Edmonds followed a similar trajectory but has generally had lower vacancies over the analysis period (as of July 2022, around three percent). Vacancies across Snohomish County have typically remained higher than both the Study Area and Edmonds, starting at 6.1 percent in a 2010 and falling to about 5.1 percent in July 2022. 19 ECONorthwest Packet Pg. 95 4.2.a Single-family Home Sales Prices In March of 2022, the median home sales price in the City of Edmonds reached its highest value of $1.2 million. During the same month, the median home sales price in Esperance reached $1.025 million, compared to $800,000 in Snohomish County and $648,000 statewide. Esperance tended to have a lower median home sales price than the City of Edmonds, except for a handful of months, during the February 2012 to June 2022 period. The largest difference in sales price between Esperance and Edmonds occurred in May 2022 with a median price of $1.36 million in Esperance compared to $1.20 million in Edmonds (a difference of $345,000, or about 34 percent). Increased home sale price is a trend that we are seeing throughout the Puget Sound region, reflecting a tight housing market, housing underproduction, and increased construction costs. Exhibit 22. Change in Median Home Sales Price, February 2012 - June 2022 Source: Redfin. Data note: Home sales price data are reported in nominal terms, and thus, are not adjusted for inflation. $1600,000 $1400,000 $1200,000 m U a $1000,000 N N $800 000 0 x c $600000 m $400000 $200000 $0 O O ti ti ti N N 1 1 1 1 1 1 1 1 1 1 1 1 1 N N N N N N N N O O iy O O O O O O O O -Edmonds -Esperance- Mountlake Terrace ••••• Snohomish County -Washington ECONorthwest 20 r Q Packet Pg. 96 4.2.a Visitation to Highway 99 Neighborhood Area According to Placer.ai,10 foot - traffic visit estimates in the Study Area reached a low of about 106,000 persons in April of 2020. Since then, it has rebounded but not fully recovered relative to its December 2019 peak of 291,500 persons. In December 2021, foot -traffic reached 98 percent of the Study Area's pre -pandemic levels (about 286,200 visits). During 2022 (as of July), the month of May had the highest visit volume relative to all other months at about 251,100 visits (about 96 percent of May 2019 visits). Exhibit 23. Change in Monthly Visits to the Study Area Corridor, January 2017-July 2022 Source: Placer.ai. 350,000 WVIDd9 Pandemic Begins 300,ODO 250,000 a 200,000 E w E 150,000 100.000 N S 50,ODO 0 _T 41 _T y y y ry0 ry0 ry0 ryh 1;7 IV NIP I' VP 10 Placer.ai is a proprietary artificial intelligence software platform that estimates foot traffic trends via anonymized cellular location data. The platform relies upon a panel dataset of over 30 million unique monthly users. Their panel dataset of mobile devices is created exclusively from U.S.-based phone applications; it is unlikely that their panel dataset represents international tourists. ECONorthwest Packet Pg. 97 4.2.a Within a 10-minute drive, Lynnwood and Shoreline are accessible from the Travelodge in the Study Area. Within a 20-minute drive, the Puget Sound is accessible via Everett, Edmonds, and downtown Seattle. A 30- minute drive can get visitors as far as Marysville to the north, Tukwila to the south, and Cottage Lake to the east. Exhibit 24. Drive Time from Travel odge, 10-, 20-, and 30- minutes Source: Placer.ai.4F IF _ n l ai NA. 7 � Gr3rl'C all' Por: Langley I-adlock-IrcndalO s_s, ,af Por7 I-Ldlow tna Drive Time 10 min 20 min A 30 min Belfair t roe. Gald Bar Voo 522 n :,BoihelI Issaquah Snoqualmie {0 North Bend on Section 3. Key Community Revitalization Tools The community demographic analysis showed that the study area is more diverse, younger, has more renters, and has lower income and higher poverty than the City of Edmonds. The City should consider investments for the study area, such as community place -making, accomplished in a way that leads to more equitable outcomes, informed by the city's equitable engagement framework (more details below). They should also seek tools helping to finance needed community and streetscape improvements, infrastructure, and amenities (more details below). The City's equitable engagement framework suggests a need to invest in areas beyond Downtown in communities that have been historically left out. They emphasize the need to connect with people in the community through welcoming engagement efforts, including a community liaison, and allowing for the sharing of information about grant funding opportunities with local businesses and organizations, particularly organizations serving racially and economically diverse communities. Community revitalization done without intentional focus on achieving more equitable outcomes can lead to increases in inequities. Thus, strategies should be thoughtfully formulated to prevent the displacement of current residents particularly those living in affordable housing and/or rentals and existing local businesses particularly for those renting spaces. It is common for residential displacement for a neighborhood experiencing redevelopment, though with the right measures in place, it can be mitigated. "Direct displacement" is when current residents are forced to move because of rising rents, lease non -renewals, evictions, or eminent domain ECONorthwest W a Packet Pg. 98 4.2.a (physical displacement). "Exclusionary displacement" is when housing choices for prospective low-income residents become more limited. "Displacement pressures" and "cultural displacement" are when culturally relevant supports and services that low-income, and families - of -color rely on disappear from the neighborhood, thus making the neighborhood less welcoming and inclusive. Several strategies could be considered to prevent displacement of businesses and residents. A few anti -displacement strategies to consider for businesses are to fund storefront improvement grants, provide small business resources, offer tenant improvement assistance for existing businesses, or support the development of vibrant mixed -use and mixed -income urban areas with multimodal access. In addition, a selection of anti -displacement strategies to consider for residences include efforts such as purchasing naturally occurring affordable housing at risk for displacement to preserve them for affordable housing (such as motels serving as de -facto affordable housing) or a "Right -to -Return Policy" that allows any resident physically displaced by redevelopment to have a first -right -of -refusal in the newly developed property within a reasonable timeframe. The primary tools that the City of Edmonds has at its disposal to support community development and revitalization are associated with the land use and regulatory environment, partnerships, and community investment. The City has an opportunity to explore strategies that support community goals and meet community needs. Beyond the typical local jurisdiction capital and transportation improvement investment tools, the following section provides a menu of options (not an exhaustive list) including a sample of potential tools, primarily focused on financing improvements, that could be explored further. Desired Outcomes ■ Create a Multi -cultural Community Center to showcase rich diversity of this area. ■ Improve overall environment for people given large amount of housing being developed. ■ Improve access to family -friendly indoor recreation and high -quality public open space. ■ Improve access to public restrooms. ■ Create a safer and better -connected pedestrian environment. ■ Interface with on -going Edmonds signage project and neighborhood naming projects. `` c ■ Leverage Highway 99 roadway and sidewalk improvement project underway. E Community Place -Making Focused Investment a In general, the City could help increase economic activity by supporting place -making to help establish the area as a pedestrian friendly destination for residents to connect with others and spend their time and disposable income. Essentially, if done effectively, place -making can 23 ECONorthwest Packet Pg. 99 4.2.a connect the community, catalyze economic development, support community health and safety, establish places reflective of the community's uniqueness and diversity, and help create a sense of place in a community. The City could prioritize adding multimodal transportation improvements to the neighborhood such as sidewalk and bicycle/pedestrian path facilities, park and public space improvements, and neighborhood branding and amenities to help make the area more welcoming and distinct. Additionally, a business attraction campaign could be created to aid recruitment efforts as well as identifying and addressing public realm improvements. The City could support and build capacity for local businesses through partnerships and coalition building focused on identifying physical improvements and providing a range of different financing tools to achieve them. Public Private Partnerships Public -private partnerships for economic development typically involve the use of public financial assistance programs and other public levers or interventions in partnership with the private sector to facilitate development outcomes. Typically, these partnerships are used to support projects that align with public policy objectives, but that are not feasible without public participation or support (such as with infrastructure investment). These partnerships can advance community development but should be carried out with a partnership structured responsibly and with support from project stakeholders." These partnerships can be more effective if the following is addressed: ■ Identifying a compelling development strategy with demonstrable public benefit. ■ Generating support for development objectives from elected officials and stakeholders. ■ Identifying priority sites and laying the groundwork for development through pre - development activities (preparing the site for development). ■ Getting to know the development community, finding a capable development partner, and forming a public -private partnership team. ■ Identifying public assistance tools and furthering understanding on the range of tools available. ■ Right sizing the amount of public assistance. ■ Structuring a fair deal and monitoring project performance. If this partnership will help advance the construction of a community facility, there are other v considerations to address including an analysis of the site factors that will influence the facility w use (such as access, proximity to complementary uses, infrastructure, and utilities, etc.). The ownership models of a community facility vary and could include non-profit ownership or public E ownership such as through a Public Development Authority. a 11 American Planning Association. (2017). Dickinson, Geoff, Dorn, Lance. PAS Memo: Constructing Effective Public - Private Partnerships. 24 ECONorthwest Packet Pg. 100 4.2.a Local Improvement Districts A Local Improvement Districts (LID) is a way to support benefiting properties in financing needed capital improvements over time through the formation of special assessment districts. All the property owners within the LID area must opt into the LID. LIDS can catalyze economic growth by allowing private property owners the ability to obtain long-term financing for on -site public infrastructure at relatively lower interest rates. Ultimately, LID will lead to the sale of bonds to investors.12 A LID can help catalyze economic growth by enabling developers to obtain long-term financing for on -site public infrastructure at relatively lower interest rates. Tax Increment Financing Tax Increment Financing (TIF) can be used to facilitate private investment in the area.13 The newly updated Washington State tax increment finance (TIF) law has significantly improved local area infrastructure funding for local governments.14 TIF captures property taxes generated from the increased assessed valuation on a publicly owned site that results from private development following infrastructure investment. The City could submit a Request for Proposal from private developers to develop the TIF site. The City should identify a list of potential infrastructure projects, and these should be screened for eligibility under the state TIF law. Additional work should be completed to detail the location of the district, public improvement costs, TIF revenues, proof development would not happen if the infrastructure was not constructed, and other elements required under the law." Given the newness of the TIF provisions, we recommend thorough research describing different TIF options and eligibility requirements and analysis of future development potential, TIF revenues, and potential mitigation needs. The local jurisdiction must pass an ordinance that designates an increment area (area expected to benefit from the development), identifies the infrastructure improvements to be financed, and states whether bonds will be issued. Example eligible infrastructure improvements can include: 12 https:Hmrsc.org/Home/Explore-Topics/Public-Works/Finance/Local-Improvement-Districts.aspx U 13 TIF financing has become more of viable tool to use in Washington cities due to new state legislation signed on Q May 10, 2021. TIF enables local governments to promote private development in targeted areas by financing public W U infrastructure and community improvements with the additional property taxes resulting from increased property w values due to improvements. TIF is widely used across the nation, but Washington had barriers preventing traditional +; use of this tool. Now this tool can be used to capture all the additional local property tax revenue rather than previous restrictions associated with the One Percent Rule. ESHB 1189 establishes that the earliest time for increment area to E into effect would be June 1, 2022. Source: httl2s://www.mdsul2ra.com/legalnews/washington-state-s-expanded-tif- U 4871064/ Q 14 ESHB 1189 establishes that the earliest time for increment area to into effect would be June 1, 2022. Source: https://www.ldsu pra.com/legal news/washi ngton-state-s-expanded-tif-4871064/ 15 Requirements for TIF, https://mrsc.org/Home/Stay-Informed/MRSC-Insight/September-2021/Tax-Increment- Financing-Now-Available-in-WA.aspxx. Once an increment area is established, the boundaries cannot be modified. ECONorthwest 25 Packet Pg. 101 4.2.a ■ Street and road construction ■ Water and sewer system construction and improvements ■ Sidewalks and other non -motorized transportation improvements and streetlights ■ Transit facilities ■ Park and community facilities and recreational areas ■ Stormwater and drainage management systems Community Renewal Act The Community Renewal Planning (CRP) tool can help shape future urban renewal and urban development activity. The City of Olympia gained approval of a Community Renewal Area pursuant to Chapter 35.81 in 2016.16 The purpose of the Community Renewal Law is to eliminate or prevent blighted conditions and improve and revive blighted areas within municipalities through investment and economic development. The City of Olympia's implementation of a downtown community renewal area supported revitalization, redevelopment, and affordable housing production. Washington State's Community Renewal Law details the extensive requirements for adopting a CRP. Legal expertise, stakeholder engagement, and extensive analysis likely would be required as a part of the CRP process. Consequently, it is important to assess whether the benefits of CRP would outweigh the costs for its establishment and whether the CRP would truly be needed to achieve community goals. The following table provides a list of possible actions to take on a property and compares what would be possible with and without Community Renewal Act regulatory abilities. 16 Washington State Chapter 35.81 RCW, Community Renewal Law: https:Happ.leg.wa.gov/rcw/default.aspx?cite=35.81 &full=true 26 ECONorthwest a Packet Pg. 102 4.2.a Property ownership by City Without CR4 Additional abilities with CR4 in place Allowed, but notwith i ntent to be resold to private Bay lease condennjr ow —red property party for economic development Allowed with preference to resale to private parties' ffaK dear, orinwroverealproperty Allowed, but only for public facilities Allowed for both public or eventual private use Allowed, but notwith i ntent to be resold to private Drapaae of real property party for economic development Allowed with preference to resale to private parties' �cordeswsres ary m be e�m�m � trots ad l ry r�ytr, sst rsrwnnrcb6 Zoning changes WithoutCR4 Additional abilities with CRQ in place Allowed as a spotzone regardless ofGMA/Comprehensive Rezoneproperty Allowed as a Planned Area Plan cycle Not allowed since it can be construed to benefit private thre reaovrmv to masterplan Priwk Property Allowed Property Allowed in a limited way as part of the Planned Area Create special dGtrir� isiih unique rules Allowed zoning Private partnerships Without CR4 Additional abilities with CR4 in place City can only sell propertyit owns through competitive Before purchasing property, the city can identify partners Enter into a devebper agreement to develop all or some. City can also dictate to buyers how bid without strings attached. the property will be used. Allowed after some Idnd of competitive processor any non- Select buyer who agrees to farther CBA goals Not al loured prorit buyerwithout competitive process Execute contract and other awburnents Allowed to carry out City purposes only Allowed to carry outCRA purposes as well Provide fnaerr8ves to tenant Who hey fulfill the eernrnunity Allowed with limitations Allowed with more flexibility reneumlplan 27 ECONorthwest r C 0 E L V fC a� Q Packet Pg. 103 Edmonds Highway 99 Community Renewal Plan 4.2.a Appendix B: Urban Design Analysis M w E E 0 U t r c E t 0 R Q Packet Pg. 104 E w 7 � MF A �r �� r a .i� � '� •fir � t Y 90, Nft Final 9/30/2022 19 E mon s H* 99 C Ur n Design An - . �� 4.2.a Urban Design Analysis Cu This presentation analyzes urban design in the Edmonds Hwy 99 CRA study area, including the types of buildings present, quality of the pedestrian environment, and urban design elements that create an environment that welcomes or discourages crime. It assembles and reviews information about current conditions including existing building stock types, age, and current use/vacancy; zoning; street types, connectivity, and safety; access to open space; past planning efforts; and related factors. Presentation content has been organized to align with the conditions of blight enumerated in RCW 35.81.005. Packet Pg. 106 4.2.a Community Renewal • State law (RCW 35.81) allows cities to designate "community renewal areas" (CRAB) where special interventions are needed to arrest problematic and self -reinforcing trends. CU • This process involves studying the area, talking with stakeholders, and identifying "blight" conditions that impedes the healthy growth and well-being of the area, and developing a community renewal plan to address problems. Packet Pg. 107 4.2.a Community Renewal CU • Under community renewal rules, cities can play a more active role than normal to remove barriers to positive change. • Typically, cities must sell surplus properties to the highest bidder, with little consideration of community goals. • With a CRA, a City can: • Acquire, transfer, and sell property for projects that meet community needs, support local businesses, or catalyze investment • Assist those affected by any renewal project • Provide incentives for job creation and retention or for targeted businesses that help fulfill plan goals Packet Pg. 108 4.2.a Community Renewal Community Renewal has been Washington state, including or jurisdictions: • Olympia Downtown, 2017 • Shoreline Aurora Square, 2013 (on Hwy 99) • Auburn, 2006 • Vancouver, 2005 used in cities around Highway 99 in other • Everett, 2004 • Walla Walla, 2004 • Bellingham, 2001 • Tukwila International Blvd (Hwy 99), 2000 Packet Pg. 109 4.2.a Community Renewal: Tukwila • In 2000 Tukwila adopted the International Boulevard Urban Renewal Plan • Similar issues: • Aging buildings • Disproportionate share of crime • Unsafe crossings • Awkward lots and intersections due to diagonal route • Vacant properties �r #:zL R'" 2002 !!wM Community Renewal: Tukwila • In 2000 Tukwila adopted the International Boulevard Urban Renewal Plan • Similar issues: • Aging buildings • Disproportionate share of crime • Unsafe crossings • Awkward lots and intersections due to diagonal route • Vacant properties �3 dL . t r Leper. • 4.2.a Packet Pg. 111 The Tukwila International Boulevard Urban Renewal Plan led to development of Tukwila Village, with: • KCLS library branch • New retail spaces CO • Community center • 400+ apartments • Public plaza (mostly senior housing) y • Food hall (Spice Bridge) 0. CL t. •ice I.YI .� ..4 �'� - �~ - •.-tea) �. a • K r' a� - .x rr ■g IE n �� W c 111 Ir ll'tor fC ' _ F I' 1 d ti. a. rr ■r ti� is Flo! miff rr ti r� t titNitYn r �� ■ _1 �..1 �i� ■' {�t • �!� ! ' . Ilf E -- - 1�1 ' ■ ' 11! li bC G■� 1 r■r 1Y rK r rr, �� E eCq I"�I" T -- 3 Ile LIE all o ail r1lip I 9W.- - LLJ lox10, ry 70 „�� Packet Pg. 112 ' 4.2.a Conditions of Blight As defined in RCW 35.81.005 and summarized by Hugh Spitzer (2002), the following conditions are indicative of blight. Blight related to health and safety conditions gives the City potentially stronger legal authority. Health and safety blight Economic blight 1. Substantial physical dilapidation, 7. Defective or inadequate street deterioration or obsolescence, layout or lot layout, improper 2. Overcrowding, subdivision or obsolete platting, 3. Unsanitary or unsafe conditions, 8. Excessive land coverage, 4. Dangerous or unhealthful 9. Persistent and high levels of conditions, unemployment or poverty, 5. Hazardous soils or substances, 10. Diversity of ownership, or 6. Inappropriate or mixed uses of land 11. Tax or special assessment or buildings, delinquencies. CU Packet Pg. 113 Study Area Context • Study area is in southeast Edmonds along Highway 99 • The area is bordered by: • Shoreline to the south • Mountlake Terrace to the east • Esperance (unincorporated) to the northwest • Edmonds Way and interchange construction circa 1960 at southern end of study area • Highway 99, a WSDOT controlled state highway, is a heavy traffic arterial connecting Seattle to Everett • Mix of auto -oriented businesses and apartments along Highway 99 surrounded by low -density residential areas ... WL i 1" ESPERANCE (L)NINCC) RPQRAT D —r Frir f_jr. r• r= F/%RK_ i:,uRORa.AnIT —�-- f - -o _ U —� W r E TK-r JGEF - Packet Pg. 114 Annexation History • Annexation to Edmonds: • Area east of Hwy 99: 1961 • Area west of Hwy 99: 1995 • Most of the study area has been part of the City of Edmonds for more than 60 yea rs 1980 1777 LYI%JNVVUUL7 7CASPE R5-5oT 4.2.a 1956 1955 1958 as 1. . 1957 95= 18 m 1950 .2 1=DMON 1 59 1956 CL 1957 1958 a 1950 1973 Q 1992 1959 Q 2-20TH�ST•5W Z 1955 � � , FL - 195 7�1919 F'FRAN�F 4) ' j Study Area : a l Study Area 1/4 Mile Buffer 228TH sT 5 w'�,, �, 0 Edmonds City Limits E Annexation History 1983 : M" UN l�E c 1890 - 1900 _ '� E RA`E vi 1900-1910 r+� I 1910 - 1920 1997 236TH 5�T.5W r .� w >� 1920 - 1930 196111 � 1930 - 1940 1940 - 1950 1995 1996 1i695 I �� 1981 r 1950 - 1960 M 1960 - 1970 ',�►Y 'M 1970 - 1980 :� 1 1980 - 1990 SH RELINE 1990 - 2000 '-�- � --- ----- �" Packet Pg. 115 Zoning Consistent, flexible zoning (GC) along corridor, recently updated following Highway 99 Subarea Plan Low -density single-family zoning (RS-8) with 8,000 sf minimum lot size elsewhere Significant contrast in zoned intensity at corridor edge GC General Commercial BC Community Business BN Neighborhood Business RM-1.5 Multi Family, 1,500 sf ft per unit RM-2.4 Multi Family, 2,400 sf ft per unit RM-3 Multi Family, 3,000 sf ft per unit RS-8 Single Family, 8,000 sf lots RSW-12 Single Family Waterfront, 12,000 sf lots MADRONA LN y T — � m' 23$rH 5 o�o�as 240TH 5T 5vr � l ' 2 2N❑ ..... 1 e sW 228TH 5r W 4.2.a 229TH Sr SW 230rH sT sw ca 3 a� '¢ T fA � r 'V Q a J Q Z - a � 3 � V Q� W 2415T575W Packet Pg. 116 244rH Sr SW Current Land Use • Current uses mirror zoning • Mix of commercial and multi -family uses on corridor, including retail, lodging, professional services, auto sales, self - storage, construction, and entertainment • Single family residential elsewhere, except near Edmonds Way Current use 0 Single family residential 0 Middle housing 0 Apartments Mobile homes 0 Retail/general commercial Auto -related& construction 0 Entertainment Lodging Services 0 Industrial Source: Snohomish County Tax Assessor, 2021 Ile0.4 1 a El L N 2.3OTH 5i SA' - f :�J . rrrrrr� 233STSTSW - ■ r 11 HOLLY LN ■ ■ �� M 1 � �a ME 71LI IICIJG NMI "Amb E-3 .iR . ■Il li ■ e ■ ' �� 1❑. all " ��■ . �I: ' LI7,��, : �■,� r�■■Di �0 r �+ wl an nEe Fj-i r i- --„ 4.2.a Packet Pg. 117 1 Assets Summary Sound Transit light rail service at Mountlake Terrace freeway station Ballinger Park (in Mountlake Terrace) Culturally -relevant businesses and non-profit service providers throughout corridor Community garden Mini -City Hall Full -service grocery & lively shopping plaza Swift BRT stations a Swift Blue Line station Multi -family housing Businesses Service Providers Interurban trail Pa rks 228TH ST SW - -J-LJ AI.1,_1 / �EAA4t.' . _ ! . I .. I CHURCH --_ 228TH ST W COUNTRY : ' - - FARN.S ;' # 4.2.a EOMONIS k 230TH ST SW 231 ST ST SW HOLLY LN . PLE LN �IFI 71T- BIZ. Z - ..r _— — ..I 1i� 1�- Ion EE+MONOS THE. N CHURCH —; I. wj_SRYTFRI,WL__ CHURCH OR_ _ I r I _; SFATIII - n 229TH ST.5 - RARf�: — f BA:_L-1NGEf� - J -- A ARTNI NT J IJBnGF �SErF• TO ACE CLINIC. �RnC,ARC .:.1 �I �' 2 n3TMF.N �n -734TWSV W - Q &,. -_ __ _.Y z _.. LL RK FL s1LI LOV'Ii3�F�' I `- - C I -- a3 c :38�irF w =I - E W ! MAYHAY, .4L', 46k - -------------------F- �■"�' . �� Packet Pg 118 244TH ST SW CFJR&I CUJNTRV 4�� FA 4.2.a EDON�ND MS ,+ Issues Summary Extensive paving and lack of tree canopy High-speed, heavy traffic arterial with L few safe pedestrian or vehicle crossings I _ Inability for people on foot, bike, or wheels in neighborhood to access Hwy 99 services Shoplifting hot spot Vacant building PARK J I FL3LIC STCPAGC STOP,C.E CLIhIICi P-AH3C.0 AIARTME147 cl ' r rPo nEs• a LAE _H AIyQ — j� r 3 �SAFCVJAy .[a MAC E • • psign Analysis : n ions It I WIT. "16S 1& 1, 1 Physical Dilapidation, Deterioration, or Obsolescence • Many buildings more than 50years old, especially in southern portion of study area • Cluster of buildings in "below normal cond, ition or worse near interchange aG Aging Stuctures Pre-1940 1940-1960 1960-1980 Parcel with buildings in "Below normal" condition or worse — L LJ—LJ Q,Fvct i` CHURCH - - - - COi1NTRY FARMS- EDMONDS - FP�LRIYIV r EPP PU3LIC STORAGE - r ' r 7 rF F- r�� r F _CU �71LLF, EP F r _. ''AGE rn r r r _ram Wri a r Q r r �r t r F �r a _ r �_ Z rr r r r- r r � � r Fa F = Source: Snohomish County Tax Assessor, 2021 I 4.2.a I Unsafe Conditions All Police Incident Reports Heat map shows all police incident reports 2017-2022 High density of police reports in study area, especially the southern portion •� DO OWN EDIONDS WOODWAY 0 0 ESPERANCE .y 3 z e v } LYNNWC a � J i Q Z LL :J71 a 3 c as € E _-. o v MOUNTI w TEM i ' i t a -............ .,_.._,._„_,._._•._„_..■,,.,�.....,._......:.._„-�-•{ Packet Pg. 122 I Source: Edmonds Police Department, 2022 SHORELINE I 4.2.a I Unsafe Conditions Theft Theft incident report hot spots 2017-2022, including: • Theft • Shoplifting • Burglary • Robbery • Vehicle thefts High level of reported theft at Safeway/T.J Max and Burlington Coat Factory DOWNTOWN EDMONDS -„-! ESPERANCE WOODWAY 0 l: CU LYNNWC w CL a J a Z LL — Win 0 U QI U MOUNTI w TERRE m E t Q Safeway ----.--.............. _.._.,_.._.,_.,_.._,._„_.._. ,,.._, �......, i I Source: Edmonds Police Department, 2022 ... Packet Pg. 123 -"- - SHORELINE I 4.2.a I Unsafe Conditions Minorincidents Minor activity incident report hot spots 2017-2022, including: • Suspicious activity • Malicious mischief • Nuisance • Disturbance • Harassment • Welfare checks Southern portion of study area has highest density city-wide for these "quality of life policing' incidents W i 4 DOWNTOWN EDMONDS • WOODWAY 10 0 40 r ESPERANCE .y f 3 z LYNNWC AD a r J i Q i Z O L) 7 MOUNTI w TERRE a ---_.._.._.._.._.._.._„_......_.�.._,.„_. �,,.�r.........,„.,.�.._..,..._.._.�Packet Pg. 124� Source: Edmonds Police Department, 2022 _,._,._.._,._ SHORELINE Unsafe Conditions Domestic Violence Domestic violence incident reports 2017- 2022 Motels a major hotspot for domestic violence reports. Source: Edmonds Police Department, 2022 DOWNTCIWN 0 EQ ONQS A !��_.•��..� � it Fir- 40 i i WOODWAY I ESPERANCE � ; s SHORELINE i O LYNNWC t Q a J Q Z a a � C � r _ C O U MOUNTI w TEM m t i Q Motcl." L.. Packet Pg. 125 Unsafe Conditions Collisions Collision incident reports 2022-2017 Collisions disproportionately centered on Highway 99 0 DO TOWN EDOOND5 � i f ESPERANCE - WOODWAY i i i i i ............ _„_......_.,_.,_.._,._,._,._. _,._„_..�,,.na,_,,,.,��,i Packet Pg. 126 I Source: Edmonds Police Department, 2022 SHORELINE I 4.2.a I Unsafe Conditions Code Enforcement Code enforcement 2017-2022 Hot spot at vacant 7-11 IMn1own onds WOODWAY Source: City of Edmonds Development Services, 2022 s i s EDMONDS V ESPERANCE 1 3 z a� No LYNNWC u) Q J Q z ,.n c� ■ a C N r 3 E E O U U MOUNT[ w TERRE m E t Q 7-11 Packet Pg. 127 SHORELINE V�/ * iO- 22.., - ��:� Unsafe Conditions Poor visibility areas Crime prevention through environmental design (CPTED) cautions against areas with poorly defined spaces with no sense of ownership and poor visibility. Low -visibility, low activity "dead zones" created by: • Low -visibility rear and sides of buildings • Fences and landscaped buffers • Poor local circulation Physical barriers between corridor uses and surrounding neighborhoods exacerbate dead zones Dead zone Parking lots Active building front ..... Study area - Fr 1 F r V rL J z C -7' - E E a� F-- w j a JJ11I �� Packet Pg. 129 Unsafe Conditions Noise • Some existing apartments impacted by traffic noise from Highway 99 • Consistent high noise exposure has documented health impacts • Existing code encourages new housing development immediately adjacent to highway • Burlington Coat Factory site shielded from noise by topography Noise (dBA) 24-hr LAeq > 90.0 80.0 - 89.9 70.0 - 79.9 60.0 - 69.9 55.0 - 59.9 50.0 - 54.9 45.0 - 49.9 1 Source: USDOT National Transportation Noise Map, 2022 Packet Pg. 130 I 4.2.a I Unsafe Conditions Air pollution • Relatively high exposure to high -traffic roadways per Washington Health Disparities map • Annual Average Daily Traffic on Highway 99 -32,000 vehicle trips per day Recommended* distance of 500 ft for residential and other sensitive uses from "major roadways" with 50,000+ vehicle trips * California Air Resources Board Low rink Edmonds .® Packet Pg. 131 I 4.2.a I 40 Insufficient Access to Parks and Open Space • PROS plan identifies need for greater parks access for areas near Highway 99 • Map shows quarter mile buffer from parks • Best park access in west and north Edmonds Parks in nearby jurisdictions provide partial parks coverage for north study area Much of study area (and south Edmonds) lack easy access to parks Park Park within'/4 mile No park within 1/4 mile EDMONDS Downtown Edmonds IL WOODWAY ESPERANCE LYNNWC .2 c CL a J a z LL J r• C E 0 U U MOUNTI w TERR) a� E r a .,._„_................,...._„_.._.._.i Packet Pg. 132 SHORELINE -1 'a's "A Obb iv SnacQ X., AWN& . W-V oil AI qkl Inadequate Street Layout • Seven -lane Hwy 99 bisects the study area • Lack of parallel routes and large blocks make it hard to avoid Highway 99 • Inter -site connectivity not required under previous code Local street network fails to balance local and through -traffic needs Two _lanes ......... - Seven Tw o� ....... lanes Ian. d Two _ a - lanes • a -- - - J - - Z Two Th ree ; A - Two c� lanes lanes - - _ lanes a_ � I•. I�;I,:Ir.. - C Two _ E 0 -- Seven lanes v Q� lanes 1.. �ATih ' L.i. LLJ K. c 1, 4) Four lanes - Packet Pg. 134 - Inadequate Street Layout No • Fences and poor local circulation prevent contiguous access between accessible areas • "Dendritic" access structure forces users onto Highway 99, which functions poorly for short - distance vehicle and pedestrian travel Contiguous access 4.2.a Inadequate Street Layout • High speed, heavy traffic Highway 99 difficult to use for local access • Few traffic signals on 99 make turning movements difficult • No equivalent parallel route • Many properties lack alternate options • Uncomfortable pedestrian experience on highway, few crossings Highway 99 struggles to balance competing functions as a heavily -used intercity highway and main -street for businesses and homes. 3 z a� x Packet Pg. 136 Inadequate Street Layout 0 Lack of sidewalks on most side streets Only three pedestrian crossings of Hwy 99 in 1.1 mile study area 0.7 mile gap between crosswalks from 238t" St to 228t" St (northern end) 0.3 mile gap between crosswalks from 244t" to 238t" St (southern end) High intensity activated crosswalk (HAWK) signal proposed for 234t" St SW Poor pedestrian connectivity limits local circulation, reinforcing problematic edge zones 230TH ST SW :Si 5-5;'d L3Sf y lay 0y FT1f ■ Packet Pg. 137 <44 r H j I SYJ i i Inadequate Street Layout Study area blocks: -1000 ft x 650 ft Downtown Edmonds blocks: * 650 ft x 300 ft * 420 ft x 320 ft Wide, deep blocks in the study area impede local circulation and isolate individual uses. 320 7M 0 ■ J z D�WNT�IIVI" M _IM r C■ a 3� ST DY ARE Eq Packet Pg. 138 'Ll Inadequate Lot Layout GULDEN VVIST MOTEL K& M . . . . . . . . . . . Q. + wt B Cl! L I a. F AU R C A 0 LU Packet Pg. 139 Inadequate Lot Layout • WSDOT-owned parcel in roadway • Dead-end cul-de-sac partially WSDOT- controlled right-of-way • Hotspot for crime (per interview with PD) WSDOT-controlled land near interchange creates negative space with no sense of ownership, poor supervision, and limited public benefit. WSDOT ROW City ROW DEN WEST 240TH ST SW EDMONDS WA V CU T .AURC , A E Inadequate Lot Layout • Hwy 99/SR-104 and SR-104/244th St SW interchanges are oversized for existing traffic volumes • Interchanges occupy a large amount of land, with the effect of: • Creating unusable dead zones • Interrupting wa l ka b i l ity • Complicating vehicle assess to nearby parcels WSDOT ROW City ROW wr 24DTH ST SW C _ 0. CL IL - 3 m 242ND ST SW 7 SR 1114 . 7? 1 EDMOND E[7ry��S wRY E w 2£4T.-H5I_SNl--------------- 244TW--5T,9W-- t _. SHORELINE Existing roadways I Packet Pg. 141 Inadequate Lot Layout • Opportunity to "right -size" highway interchanges • Potential to free up land for development, habitat restoration, walking/cycling trails, or other uses • Potential to fix gaps in sidewalk connectivity and restricted turning movements WSDOT ROW City ROW W = " _ R 00 19 24DTH ST SW C - Q. :� - _ Q _, Z I� r try ,s.K:• � _ 242ND ST SW _ 3 SR 7 Q4 - E[7 EDMONDS ONDs VV, O W "x r. W fix' - G1 244TH ST SW- - - - - - - - - - - - - - - - 244TW4T_&W - - - - - ` - - - t - - - V - Mr - SHORELINE } �� Reclaimed area Potential roadway revision I Packet Pg. 142 Inadequate Lot Layout Oblique angle of Highway 99 to street grid creates awkward building layouts and/or unusable space on site . a �� an, 1'1 r;1 ■..10 an •I IF r ft IF � ' ■ ■�It ...■*. * ■ + ■. ■ t 4.2.a I J r ■ ■■ J r ■ I- a -WI led■ � ■■ 1 ■ ■; r* .�■r■. � ` "IM, `■ an= -or r L i SEE .2 .■r■.��h1•. ■ IF 1 1 ■■ k c ■ 1 M 11 IM -d"W'.; man a 14 + IY _r.r■1 I I �. o f1. :LI ` J 1 ■r r .1 1 Q -a i1 r - -90 NJ Y . i■ ■ ■ ■ ■ft r . r Z, r it 1 ■- :� ■ . 1 i ■ E i i■ RIM . .7 :r .r E ■ �.. ?r Ly rrI j■1 i`■� .141 ■ 7 ti �7� ,� ` 1 , to 1• 1 7 1 oil ■ ��Ir � a �I ■ .i�" it L M ■f :yNo ■� � . ■' ■ ■ I. ■ In ■ ■ � . � .boom 1 L 10 � *r ; f■ r IL ■ Packet Pg. 143 ..................................................... ............ ■ ■ r Inadequate Lot Layout Oblique angle of Highway 99 to street grid creates awkward building layouts and/or unusable space on site Packet Pg. 144 Excessive Coverage • Impermeable surfaces impact stormwater • Asphalt increases heat island effect Surface parking & driveway coverage is extensive in businesses and multifamily complexes along the corridor Parking lots and driveways . .. ................. 4.2.a Packet Pg. 145 4.2.a Findings CU 3 a x Significant divide between corridor and surrounding areas defined by: • Stark contrast in land use • Poor pedestrian connectivity z • Very large blocks and difficult local circulation Isolated uses and physical barriers create dead zones behind and along buildings The southern portion of the study area experiences high crime and code enforcement issues E • Issues with the parcel layout, street design, lot access, and block size impede beneficial development U W • Oversized highway infrastructure exacerbates connectivity and safety issues w • Poor access to parks, local noise pollution, minimal tree canopy and high parking lot coverage are environmental justice concerns Packet Pg. 146 4.2.a Edmonds Highway 99 Community Renewal Plan Appendix C: Updates to the Highway 99 Subarea Plan Goal Build on the successful subarea plan to address concerns raised by community members, elected officials, and staff. Context The Edmonds Highway 99 Subarea Plan and planned -action environmental impact statement (EIS) was adopted in 2017. The plan was the result of a multi -year effort to set goals and policy to pursue improvements in the Highway 99 subarea and recommended zoning changes, upgrades to Highway 99, and other changes to improve conditions in the subarea. Several issues with plan outcomes have been noted by staff and community members: 2. Pedestrian -oriented design on Highway 99: The plan requires a pedestrian area and pedestrian -oriented design along streets for all new development, including along Highway 99. Building frontages along streets much be located within 20 feet of the property line, and surface parking is not allowed in between buildings and streets. These requirements, which help create a more pedestrian -friendly street environment on low -traffic streets, may not be appropriate for buildings fronting a seven -lane surface highway. Strategies such as adding a protected bike lane and expanded planting areas allow a greater buffer between the roadway and developments and any associated outdoor seating or dining areas. 3. Uniform zoning: The updated General Commercial zone recommended in the plan was applied to nearly all areas within the Highway 99 subarea, with no zoning changes adopted outside the subarea. The uniformity of zoning throughout lacks sensitivity to characteristics of different places within the subarea. 4. Transition zones: In addition, the lack of transition zones creates stark contrasts between allowed development in boundary areas, where 75-foot development is allowed adjacent to or across the street from detached single-family housing. 5. Design review: Development in the General Commercial zone of buildings 75 feet in height or less undergoes administrative design review rather than to the Architectural Design Board. (Note, 3 m development over 75 feet is permitted only in the designated High -Rise Node between SR 104 a� and 2441h St SW on the southern edge of the study area). Community concern about lack of public participation in the administrative design review process led City Council to adopt Ordinance c 4283, a six-month interim emergency ordinance, in December 2022 to require design review of E projects over 35 feet. Unpredictable rules around building design can inhibit private investment. o 6. Street types: The Subarea Plan does not include a street typology classification. As a result, v requirements for building design do not vary significantly between Highway 99 and smaller local cross -streets. A street typology could also provide additional guidance for the types, size, and 'a arrangement for city roadway improvements based on the street type. w :.o c In October 2022 City Council approved undertaking a supplemental EIS (SEIS) for the subarea plan to a) E better understand transportation and stormwater impacts of new permitted development. The City is also reviewing mitigation measures included in the planned action that have not yet been implemented, f° such as creation of additional public park space and improvements to sidewalks and street trees. a Implementation Plan updates could be completed in several ways. • The vote to pursue a SEIS for the subarea presents the opportunity to update the subarea plan and planned action. This would involve a public engagement effort and would likely require issuing an RFP for a consultant to lead the plan and undertake the EIS. Packet Pg. 147 Edmonds Highway 99 Community Renewal Plan 4.2.a • If a SEIS is not pursued, the City could undertake an abbreviated plan update process, including stakeholder engagement, to ensure other relevant issues with the subarea plan are captured and corrected. This effort could be undertaken by staff with City Council approval. Recommended changes would be reviewed and potentially adopted by City Council. Q Packet Pg. 148 Edmonds Highway 99 Community Renewal Plan 4.2.a Appendix D: Focus Group Notes a w E E 0 U t r c E t U R Q Packet Pg. 149 4.2.a Edmonds Highway 99 Community Renewal Plan May 6 Interview and Site Walk Results Highway 99 issues and potential blight • High police call volume and/or known crime hot spot at several sites o All four motel sites (drugs, domestic violence, gang activity) o Dead-end road northwest of interchange (drugs, gang activity) o Vacant parcels behind Burlington (unhoused camping) o Some businesses at EC Plaza - 23830 Hwy 99, Edmonds, WA 98026 (prostitution) o Manufactured home park (drugs, domestic violence) • Vacant and/or burned out buildings 0 Mick Finsters' Pub (24001 Hwy 99 Edmonds, WA 98026) - burned out likely not salvageable 0 7-11 (8101 238th St SW, Edmonds, WA 98026) - currently vacant following murder/robbery of clerk in 2020 • Traffic safety/lack of crossings o Few safe crossings of corridor, people observed jaywalking" o No crossings south of 2381h St SW 0 0.7 mile gap between crosswalks at 2381h St and 2281h St o On -going infrastructure improvements will help address this to an extent o Highway 99 is controlled by WSDOT • Similar issues are present in another area to the north that is not currently in the study area Sites of interest for potential acquisition (see map on next page) • 1 - Vacant parcels behind Burlington c a� o Same property owner as Burlington Coat Factory Q o Reports of unhoused folks camping there, but we didn't see any Q o Decent site for a park _J Q • 2 - Mick Finsters Pub Z o Adjacent to Burlington, some property owner c o Reports of squatters, though none were observed on 516 ca • 3- Burlington Coat Factory a o Building and site are gigantic o Building is somewhat run down y o Currently occupied by several businesses of differing levels of activity, including a lively auto shop on > .r the back side c • 4 - Motels E o Potential acquisition for use as emergency shelter E 0 o No clear prioritization of any of the four motels in the study area in terms of issues/acquisition V o They don't look bad from the outside < • 5 - ROW remnant U o There's extra ROW plus a WSDOT-owned parcel northwest of the Edmonds Way/Highway 99 W interchange c a� o It doesn't really serve a public purpose. As noted above, is a hot spot for drug and gang activity E o Could be combined with adjacent parcels to create a developable site (although not the best from a U environmental health standpoint given proximity to highways) Q 0 Past openness from WSDOT towards selling this land to Edmonds Packet Pg. 150 4.2.a Edmonds Highway 99 Community Renewal Plan Desired Outcomes • Create a Multi -cultural Community Center to showcase rich diversity of this area • Improve overall environment for people given large amount of housing in pipeline • Add a new park • Interface with on -going Edmonds signage project and neighborhood naming project • Leverage roadway + sidewalk improvement project underway �P.f'i11?TlE��T IOh�9E5 �— � I No safe F crossings - r- �!I •� EDMONLS _ — rT yam• ` f �r'iL i� LUfH-R N �a0,�F - rF� r- T r u lug I IriJ iF R Rlt _J_s - F .......... ....... ..... F. r.T- Z36TH t r f _ r } r _ FlPARTM�E ITS r r 77 Vacant 7-11 i r _ s�— U, 1, Motels -- - RRE�BYT� F r r r _; �_ , r; No safe crossings i r " �7R IODCEr- g Jr Sr Er- I rE _ �` 7— Et Burned -out } w TrEL voTo�:i: WSDOT Parcel �r r, -- building - r— .7- WSDOT ROW 77 7,ATH;�3.ALLIi��ER - / 7F7 F�_ 5 PA F_ T - Q Packet Pg. 151 Edmonds Highway 99 Community Renewal Plan 4.2.a June 13, 2022 Developers/Property Owners Group Interview Meeting Objectives • Explore the vision for the future of Highway 99 in Edmonds • Identify specific opportunity areas, infrastructure needs, and problem spots along the corridor • Better understand outcomes of the Highway 99 subarea plan Attendees Tim Dickerson, Goodman Real Estate Matthew Armstrong, Matthew Robert Salon Jae Him, Boo Han Market Rachel Miller, MAKERS Brad Shipley, City of Edmonds Susan McLaughlin, City of Edmonds Ian Crozier, MAKERS Attendee Background Tim: VP for Development at Goodman RE, primarily works in mixed -use and multifamily development. Currently developing a multifamily project on Highway 99 at 230th. This is the 3rd or 411 project in Edmonds he's worked on. Matt: Owner of business and property at Matthew Robert Salon at Highway 99 and 228th. Interested in potentially redeveloping lot in the future. Has operated salon business on Highway 99 for decades and been very involved in community planning efforts. Jae: Owner of business and property at Boo Han Market at Highway 99 and 228th also owns adjacent properties at corner of 228th and 99. Interested in redeveloping and has looked into feasibility in the past (but it didn't pencil yet). Involved in International District and Arts committees. General Sense of Highway 99 Overall positive experience and perception of working with the City Narrow sidewalks, high traffic speeds negatively impact desirability All three participants report drug use and homelessness are persistent problems along the corridor, creating negative interactions with customers and requiring extra security measures, and at times costly repairs Traffic channelization impacts access for businesses and residences on Highway 99 - addition of a signal and traffic calming barrier at 228th were positive developments, despite initial concerns Desire to continue doing business on Highway 99, eventually redevelop property at higher intensity In-between spaces with poor visibility, such as screening barriers and sides/backs of buildings, attract drug use and bad behavior Blight Issues Emerald Best motel north of 224th is a problem area Former 7-11 site was a problem area- it's actually helped now that it's closed Potential site contamination at former gas station on corner of 228th (see image) Many motel owners are immigrant families that may be in over their heads - don't have the ability to prevent crime from taking place on site, just need to pay the bills o City should engage with owners to understand issues Recent SHAG development has increased 'eyes on the street" which has helped with safety nearby. 7th Ave channelization and traffic diverter was a positive step, but the landscaped area is not well maintained and is overgrown (see image). c W E t c� Q Packet Pg. 152 4.2.a Edmonds Highway 99 Community Renewal Plan June 13, 2022 Development environment Burlington Coat Factory site is a good site, if developed could have a huge impact on the area. o City should work with developer to address access issues. The WSDOT ROW and parcel could make a developable site. The office market is very hard to predict right now, given work -from -home post pandemic. Retail development is very challenging. Mixed -use, some hospitality sector, and industrial development are all that is being built currently. Limited street parking leads to relatively high parking ratios: one per bedroom (Goodman RE). - Good experience developing under current code. Could screening requirements between commercial properties be made more flexible? Is live/work allowed as an active ground floor option? Active ground floors generally very important to attract customer attention when travelling through the area. o No parking allowed in front of building currently. Impact fees can make it very hard to develop in some jurisdictions. Highway 99 in Shoreline is a more desirable area, development is more feasible there. Edmonds Highway 99 market isn't there yet. Commercial rents for new spaces are so much higher than for old spaces, it's almost a totally different market. There may be enough existing retail space to meet demand for years. MFTE is makes a huge positive difference for affordability. Potential Plan Actions The sign project is important and will go a long way to strengthening the area's identity as part of Edmonds w A park or better usable open space is needed as an amenity to attract renters. A lot of unusable landscaped m "open space" doesn't really provide any benefit. E Property owners don't necessarily want the City to come in and take muscular action, but also don't want them standing in the way of people taking action. Q City use eminent domain likely did help in Lakewood to address motel problems. A consistent look and feel along the corridor would help strengthen the area's identity. CEPTED and eyes on the street are critical to deterring back behavior and increasing sense of safety and comfort Packet Pg. 153 4.2.a Edmonds Highway 99 Community Renewal Plan June 13, 2022 Community Service Providers Group Interview Meeting Objectives • Better understand the built environment/physical space needs of vulnerable community members and groups that support them • Identify potential improvements or projects that would improve quality of life and/or access to opportunities for vulnerable community members • Explore the vision for the future of Highway 99 in Edmonds Attendees Joomi Kim, Korean Community Service Center Ian Crozier, MAKERS Tim Oleson, Edmonds Lutheran Church Brad Shipley, City of Edmonds Susan McLaughlin, City of Edmonds Attendee Background Joomi: Executive Director of KCSC for the past seven years, located on Highway 99. Tim: Pastor for Edmonds Lutheran for the past 8 years. Communities Served Korean Community Services Center (KCSC) • Serves Korean American and Asian American communities, including many undocumented, linguistically challenged and/or elderly people. Many are having trouble finding housing or navigating social services. • KCSC provides some services directly: parenting classes, programs for kids, community safety programs, other human services programs. • KCSC also helps connect people with other services: International Community Health Services (IHCS), Asian Counselling and Referral Service (ACRS), pro-bono legal help • Works with Edmonds Food Bank to provide culturally appropriate food. Edmonds Lutheran Church • Church membership draws from a large area from Everett to Shoreline, about 40% are Edmonds residents. • Annie's Kitchen is a weekly free -meal program operated by the church. o Meal guests pre -pandemic were about 1/3 are chronically homeless, 1/3 are low-income w or fixed income, 1/3 who are able to afford food, but are looking for community. ■ Chronic homeless guests have declined significantly since pandemic. May be E related to cuts in free bus passes (many travel a long distance to get to meal). o Meal is staffed by volunteers, which are down about 60% since the pandemic began. a o "Gleaners" are volunteers who collect food donations from around the region. Support Annie's kitchen and the Edmonds food bank • Community Garden on church property now operated primarily by neighborhood community members, about 20 plots, in high demand. • Partnership with Housing Hope to develop 52-unit family -oriented subsidized housing building on surplus lot. Realization of long-term goal of the church. Hoping to break ground in early 2023. Packet Pg. 154 Edmonds Highway 99 Community Renewal Plan 4.2.a June 13, 2022 Community Needs • A community center with sports facilities would give families a safe, healthy place to go to be together and recreate. Could have apartments above? • Many visitors to Edmonds Lutheran request use of the restroom, which the church can't allow with while there are children in class on site. Joomi agrees, there is need for a public restroom in that area. • Lots of people use the church property as a safe, comfortable place to walk, especially with dogs. • Families with children living near Edmonds Lutheran recently organized to try to work with the church to create a playground on site in the future. This is also a community need. • Sidewalks are needed on side streets. These are gradually get filled in with redevelopment, but the process is slow and the results are inconsistent. Wheelchair users are seen rolling down the street in the vehicle lane. • There's a lack of crosswalks. Often see people running across the highway and getting stuck in the center lane. Challenges and Sites of Interest • Participants mentioned the Burlington Coat Factory site without prompting as an eyesore and a potential site for community amenities. • The vacant lot across to the south from Edmond Lutheran is a site for occasional camping by unhoused people and other "dangerous activity". Poor visibility, back side of Safeway. A 260-unit senior housing project is potentially being developed there. (23625 84th Ave W) • The hotels on Highway 99 are "awful, disgusting" but cheap. The church has occasionally paid for rooms there for people who had nowhere else to go. But that funds for that are limited. The hotels are a "hotspot" that "create unhealthy situations". • There are issues with people camping and other unsanctioned activity in the area around 22720 Hwy 99 in the north of the study area. There are long-term plans to redevelop the former tire shop near there. • Homelessness and drug use have long been visible on the corridor. It does seem like there have been fewer unhoused people visible lately. Where did they go? Are they okay? a Packet Pg. 155 Edmonds Highway 99 Community Renewal Plan 4.2.a June 13, 2022 Q EDMONDS %i- � - LUTH-ERAN -; �?2� CHURCH *Ina_ 23,6,TH S•■ r SW L 4 rM•� i LLj_ <r-.1 - Corridor Vision .....� wiA°'I° SAFEWAY • Highway 99 has felt the same for years and years, with fast moving traffic and not safe for families walking. There are many families here; this should be a family -friendly area. • The corridor looks run down and would benefit from more coherent aesthetic: better maintained buildings, and safe places for people to go. A better -looking place makes a "warmer feeling" and makes people want to take better care of a place. Engagement • Many folks are "zoomed out". In -person engagement is important to reach people. • KCSC and Edmonds Lutheran are trusted messengers that can be used to help get the word out about events or other engagement. It is helpful to have short bits - a few paragraphs at most - to share. they're asked to read something that is too long. Pastor Tim will be on sabbatical for August, September, and October Suzy@edmondslutheran.org to coordinate. KSCS has in-house interpreters potentially available for some events. People check out if Reach out to Q Packet Pg. 156 Edmonds Highway 99 Community Renewal Plan 4.2.a Appendix E: Summary of Community Renewal Area Powers M w E E 0 U t r c E t U R Q Packet Pg. 157 Increased Capabilities from Community Renewal Buy, lease, or condemn properties Hold, demolish, or improve properties Sell property to a private entity Rezone property Master plan private property Enter into a developer agreement Select a buyer who agrees to further CRA goals Close, vacate, and rearrange streets, sidewalks, and rights of way Borrow money and accept grants to carry out community renewal Aid property owners or tenants affected by the community renewal process Allowed only for public facilities Competitive bidding process Allowed as a Planned Area Not allowed Only though a competitive bidding process Not allowed Allowed for city purposes Not allowed Allowed for those affected by condemnation for public facilities Allowed 4.2.a City can identify preferred partners Allowed as a spot zone regardless of GMA/Comprehensive Plan cycle Allowed City can identify partners to develop all part of a property. City can specify hov the property is to be used. Allowed, with restrictions Allowed to promote economic development Allowed Allowed I Packet Pg. 158 CU COMMUNITY RENEWAL POWERS SEPTEMBER 4, Property ownership by City Without CRA Additional abilities with CRA in place Buy, lease, condemn, acquire real property Allowed, but not with intent to be resold to private Allowed with preference to resale to private parties* party for economic development Hold, clear, or improve real property Allowed, but only for public facilities Allowed for both public or eventual private use Dispose of real property Allowed, but not with intent to be resold to private Allowed with preference to resale to private parties* party for economic development * Condemnation only to be exercised to cure health and safety blight not economic blight Zoning changes Without CRA Additional abilities with CRA in place Allowed as a spot zone regardless of GMA/Comprehensive Rezone property Allowed as a Planned Area Plan cycle Not allowed since it can be construed to benefit private Use resources to master plan private property Allowed property Create special districts with unique rules Allowed in a limited way as part of the Planned Area Allowed zoning Private partnerships Without CRA Additional abilities with CRA in place Before purchasing property, the city can identify partners Enter into a developer agreement City can only sell property it owns through competitive to develop all or some. City can also dictate to buyers how bid without strings attached. the property will be used. Allowed after some kind of competitive process or any non- Select buyer who agrees to further CRA goals Not allowed profit buyer without competitive process Execute contracts and other instruments Allowed to carry out City purposes only Allowed to carry out CRA purposes as well Provide incentives to tenants who help fulfill the community renewal plan Allowed with limitations Allowed with more flexibility r Q Packet Pg. 159 COMMUNITY RENEWAL POWERS SEPTEMBER 4, Building infrastructure Without CRA Additional abilities with CRA in place Build and repair roads, parks, utilities Allowed Allowed Close, vacate & rearrange streets and sidewalks Allowed for city purposes Allowed to promote economic development as well Borrow money and accept grants to carry out community Not allowed Allowed renewal Form Local Improvement Districts to finance Allowed Allowed Incentives and impacts Without CRA Additional abilities with CRA in place Provide loans, grants, or other assistance to property owners or tenants affected by the community renewal Not allowed, except in aid of lower income persons Allowed process Provide financial or technical incentives for job creation or Not allowed Allowed retention Not allowed except for persons affected by Relocate persons affected by community renewal Allowed condemnation for public facilities r Q Packet Pg. 160 7.1 City Council Agenda Item Meeting Date: 06/27/2023 Claim for Damages for filing Staff Lead: NA Department: Administrative Services Preparer: Marissa Cain Background/History N/A Staff Recommendation Acknowledge receipt of Claims for Damages for filing. Narrative Alexander Ferkingstad 18609 76th Ave W ($552.50) Attachments: Claim for Damages - Ferkingstad - for council Packet Pg. 161 7.1.a CITY OF EDMONDS CLAIM FOR DAMAGES FORM Date Claim Form Received by City Please take note that �/�X�e,t Aoct Id, fit L'n: ll, eJ, who currently resides at mailing address home phone # work phone # and who resided at at the time of the occurrence and whose date of birth is _ is claiming damages against G o-P Fo1MZ^,4 S in the sum of $ S—SZ �� arising out of the following circumstances listed below. DATE OF OCCURRENCE: TIME: 1 ' 00 AtA LOCATION OF OCCURRENCE: 1 o tk dve, V3 DESCRIPTION: Describe the conduct and circumstance that brought about the injury or damage. Also describe the injury or damage. (attach an extra sheet for additional information, if needed) 2. Provide a list of witnesses, if applicable, to the occurrence including names, addresses, and phone numbers. 3. Attach copies of all documentation relating to expenses, injuries, losses, and/or estimates for repair. 4. Have you submitted a claim for damages to your insurance company? If so, please provide the name of the insurance company: and the policy #: Form Revised 04/09/2021 Yes _>L No * * ADDITIONAL INFORMATION REQUIRED FOR AUTOMOBILE CLAIMS ONLY * * Page t of 2 E .2 V Packet Pg. 162 7.1.a This Claim form must be signed by the Claimant, a person holding a written power of attorney from the Claimant, by the attorney in fact for the Claimant, by an attorney admitted to practice in Washington State on the Claimant's behalf, or by a court -approved guardian or guardian ad litem on behalf of the Claimant. I declare under penalty of perjury under the laws of the state of Washington that the foregoing is true and correct. attire o laimant Date and place (residential address, city and county) Or Signature of Representative Date and place (residential address, city and county) Print Name of Representative Bar Number (if applicable) Please present the completed claim form to: City Clerk's Office City of Edmonds 121 5t' Avenue North Edmonds, WA, 98020 8:00 a.m. to 4:30 p.m. Form Revised 04/09/2021 E .2 v Page 2 of 2 Packet Pg. 163 7.2 City Council Agenda Item Meeting Date: 06/27/2023 Written Public Comments Staff Lead: City Council Department: City Council Preparer: Beckie Peterson Background/History N/A Staff Recommendation Acknowledge receipt of written public comments. Narrative Public comments submitted to the web form for public comments <https://www.edmondswa.gov/publiccomment> between June 1, 2023 and June 21, 2023. Attachments: Public Comments June 27, 2023 Packet Pg. 164 7.2.a Edmonds City Council Public Comments —June 27, 2023 Online Form was submitted on 6/20/2023 10:17:29 AM FirstName Ken LastName Reidy CityOfResidence Edmonds AgendaTopic Public Hearing on 2024 City Budget Priorities Comments Short on time so will just remind Council of my public comments made for the 2023 Budget Public Hearing: Mayor Mike Nelson, a man whose Administration set up a hate portal, a man who accused unnamed City Councilmembers of bullying City Staff, and a man who called actions of the Washington State Supreme Court "barbaric", is proposing an in-house city prosecutor. One of Mayor Mike Nelson's stated reasons for proposing such is challenges with oversight of work being performed. Please do not consider this proposal under Mayor Mike Nelson's administration. Next, the November 20, 2012 City Council Meeting Minutes document the following public comments: Ken Reidy, Edmonds, recalled during the October 25, 2005 City Council meeting, former Development Services Director Duane Bowman said he had been describing the need to update the zoning code since he was hired in 2000. The comment was also made that the City's code dated to the 1980s and piecemeal amendments make it difficult to use and administer. Former City Attorney Scott Snyder stated in his November 2007 City Attorney annual report that the biggest issue at the start of 2007 was the code rewrite. Mr. Snyder stated the intent was to begin the rewrite last year (2006) and finish it this year (2007). Mr. Snyder summarized that the code rewrite was approximately a year behind schedule as of November 2007. Mr. Reidy pointed out five years have passed and he questioned why the code rewrite had not been completed. He urged the Council to include the proper amount in the 2013 budget to complete the long overdue code rewrite from start to finish. Code rewrite money has been budgeted multiple times, but Edmonds Mayors have failed repeatedly to execute the budget. City Councils have refused to represent their constituents by holding Mayors and staff accountable. To the 2022(now 2023) City Council, I urge you to include the proper amount in the 2023 (now 2024) budget to complete the long overdue code rewrite from start to finish. Also, the entire City Code needs to be updated. The Edmonds City Code (ECC) - (sometimes called Edmonds Municipal Code - EMC) also requires a Code Rewrite. The ECC consists of Titles 1 through 10 and addresses issues such as health, safety, finance, officials, boards and commissions. Both parts of the CODE require Rewrite and that has been true for many, many years. Please budget accordingly. c m E E 0 U 2 3 a c m r e Packet Pg. 165 7.3 City Council Agenda Item Meeting Date: 06/27/2023 Outside Boards and Committee Reports Staff Lead: Council Department: City Council Preparer: Beckie Peterson Background/History Outside Boards and Committee Reports will be submitted to the Received for Filing portion of the agenda for last meeting of the month. Staff Recommendation N/A Narrative The Council is asked to review the attached committee reports/minutes from the following organizations: Port of Edmonds SNO-COM911 Snohomish County Tomorrow Attachments: Port Of Edmonds _ Commission Meeting Minutes 4-24-23 Port Of Edmonds _ Commission Meeting Minutes 5-8-23 SNO911-Board-Agenda-20230615 (1) SnoCounty Tom orrow_04262023-2082 Packet Pg. 166 PORT COMMISSION OF THE PORT OF EDMONDS MINUTES OF REGULAR MEETING 7.3.a (Zoom and Hybrid Meeting) April 24, 2023 COMMISSIONERS PRESENT Steve Johnston, President Jim Orvis, Vice President Jay Grant, Secretary Angela Harris a a� David Preston m a� COMMISSIONERS ABSENT E E 0 U STAFF PRESENT Bob McChesney, Executive Director Brandon Baker, Director of Marina Operations m m Tina Drennan, Manager of Finance and Accounting N r Brittany Williams, Manager of Properties and Economic Development O OTHERS PRESENT Jordan Stephens, Port Attorney Neil Tibbott, Edmonds City Council CALL TO ORDER President Johnston called the meeting to order at 7:00 p.m. FLAG SALUTE All those in attendance participated in the Pledge of Allegiance to the American Flag. CONSENT AGENDA COMMISSIONER PRESTON MOVED THAT THE CONSENT AGENDA BE APPROVED TO INCLUDE THE FOLLOWING ITEMS: A. APPROVAL OF AGENDA B. APPROVAL OF APRIL 10, 2023 MEETING MINUTES, AS AMENDED C. APPROVAL OF PAYMENTS IN THE AMOUNT OF $3,786,085.24 COMMISSIONER HARRIS SECONDED THE MOTION, WHICH CARRIED UNANIMOUSLY. Packet Pg. 167 7.3.a PUBLIC COMMENTS There were no public comments. APPROVAL OF CONTRACT NO. 2023-448 FOR REBRANDING SERVICES Ms. Williams reviewed that, with support from the Communications Committee, she and Mr. Baker proposed a Port rebranding project at the November 28, 2022 Commission Meeting. The purpose of the rebranding will be to update the Port's logo, slogan and color scheme and refine the overall brand identity. The rebranding work will guide major upcoming projects and investments, including a new website and signage for the new Port Administration Building. Ms. Williams further reviewed that following a presentation on the proposed scope and timeline, the Commission authorized staff to move forward with the rebranding proposal. Staff formulated a Request for Proposals (RFP) for a Rebranding Services Contract 2023-448 and solicited proposals. The RFP was advertised in THE EVERETT HERALD, posted on the Builder's Exchange and sent to 56 marketing firms. The distribution list was comprised of companies found on the Municipal Research and Service Center (MRSC) Roster, a directory on the Washington State Office of Minority & Women's Business Enterprise's website, and several local firms discovered through research. Ms. Williams referred to the RFP timeline, as well as a list of the scope of work and deliverables, which were both included in the Staff Report. She explained that, due to the nature of the contract, it was determined that a grading rubric was used to score and select the proposals. This allowed staff to make recommendations on a value proposition rather than strictly on cost. The criterion used were (A) the portfolio and past work examples, (B) proposal quality, (C) interview, (D) cost effectiveness, and (E) availability and proposed timeline. Ms. Williams reported that 11 proposals were received, ranging in cost from $7,845 to $189,077. The proposals were scored on Items A, B, D and E from the grading rubric, and interviews were then conducted with the three highest scoring firms. Interview scores were added to the grading rubric to determine the top candidate. People -People was the highest -scoring candidate and staff's recommendation for leading the Port's rebranding effort. They have the experience, expertise and personnel to spearhead all aspects of a rebrand, from brand strategizing to website development. Ms. Williams advised that taking on this project now will help the Port improve its messaging in all areas of business. It is important to determine the type of marketing relationship they want to have between the Port, Marina and Harbor Square. They also want to continue to develop ways to educate residents about who the Port is and how it differs from the City. In addition, they want to improve the website experience and create a more cohesive look at the Port's physical properties. The contract wo Packet Pg. 168 only provide a refreshed logo and new taglines and slogans, but also the full brand kit to help the Port internally. The timing of the project is crucial, as they want to get ahead of some major investments that are already planned and get branding in place for the much -needed new website and signage at the Administration/Maintenance Building and Portwalk. Ms. Williams referred to the full list of deliverables for the contract, which was attached to the Staff Report. She advised that all three firms that were interviewed were capable and impressive, but there was a clear winner to staff. Mr. Baker advised that People -People is a Seattle -based company that has been in business since 1998, and all of the consultants working on the project will be senior level. They have been doing this work for a long time, are well versed, and are in a good position to yield the Port the best results. Their areas of expertise are brand development, web design and development, print design, name and messaging strategy, and research and insights. These are all of the things the Port is looking to accomplish with the contract. He shared a number of examples of their work, noting things that particularly stood out as applicable to the Port's project. Mr. Baker briefly reviewed the timeline: • Phase 1 — Research and Focus Groups (May through July). The intent is to work with the Commission, staff, constituent and tenant groups so People -People can effectively identify a vision for the Port. The vision will drive their work going forward. • Phase 2 — Identity and Template (July through September). During this phase, they will consider potential logos, fonts, etc. The consultant will be designing collateral templates for stationary, business cards, brochures, etc. • Phase 3 — Website Design and Development (October through November). Once the website has been designed and developed, People -People will train Port staff on how it functions. They anticipate an easy transition since the website will be built on the same platform the Port is currently using. Mr. Baker advised that the three phases will end the scope of work for the currently -proposed contract However, as discussed in earlier meetings, the work will carry on over quite a few years to include signage, vehicles, uniforms, and anything else with a Port logo. The transition will be slow, with things being replaced as they reach the end of their life. Ms. Williams clarified that the proposal represents the consultant's standard contract and is not the contract staff will ultimately bring forward. At this time, staff is asking for approval to start working on a contract with People -People. The Port uses its own contracts, so some elements will need to be discussed further and adjusted. She noted that the proposal included some optional pieces, which won't all be included in the final contract. Packet Pg. 169 Mr. Baker advised that the Communications Committee will be the sounding board as they work through the project, and staff will provide updates to the Commission at several milestones. People - People will also provide a few presentations at Commission meetings. At this time, it is too early to identify when the milestone presentations will be. Ms. Williams added that the focus groups will be an important part of the project. The goal is to have focus groups that consist of Commissioners and internal staff. It will also be important to solicit tenant and constituent feedback on certain aspects of the project, especially the website. th Commissioner Preston asked if staff expects the logo to be finished by September (Phase 2). Ms. Williams said People -People wants to develop the slogan/motto/tagline first since that will drive the messaging going forward. The art would be included as part of Phase 2. She noted that Commissioner Harris has advised that the Communications Committee will be presenting its work on the Mission Statement soon, and this will be a key piece to provide to the consultant. Commissioner Orvis said he has been amazed at the number of websites for both large and small organizations that are still not intuitive and are difficult to use. He stressed the importance of creating a website that is easy for people to find what they are looking for. In particular, answers to frequently - asked questions should be easily accessible. Ms. Williams agreed and commented that it will be a bit tricky because people visit the Port's website for completely different reasons. For example, residents might visit the site to find out about a particular event, and customers might be searching for specifics on launching boats. The goal is to provide a good user experience for everyone who visits the site. Mr. Baker added that the website is becoming more of a tool for marina customers to complete basic tasks, and the consultant will help make it easy for high -use people to do business with the Port via the website. Commissioner Orvis commented that Port Commission Minutes and Agendas, Operating Budgets and other important information should be easy for people to find, as well. Mr. Baker agreed and noted that the Port has legal requirements to provide this information to the public, and staff has been and will continue to brainstorm ways to make it easier to find. Commissioner Johnston stated that, given the high score staff gave to People -People, he suspects that staff had discussions with them during the interview and are very comfortable with their proposed approach and understanding of the Port's needs. Ms. Williams and Mr. Baker answered affirmatively. Ms. Williams explained that some of the proposals were beautiful and impressive, but they didn't seem to be a great fit for the Port. Staff felt that People -People proposed the perfect mix of interesting, attractive designs and also understood that public agencies need to be somewhat cautious when it comes to branding. Ms. Williams said she anticipates the final contract will be about $90,000. She explained that, as staff fine tunes the contract, some things will be eliminated to make the project more cost effective. For example, the number of unique pages on the website will be reduced. Packet Pg. 170 Commissioner Preston asked if staff has reviewed websites from other ports and cities to identify thin they like and don't like. Ms. Williams answered that staff did a lot of this type of research about a year ago as part of an initial step towards refreshing the Port's website. Staff will provide this research to the consultant COMMISSIONER ORVIS MOVED THE COMMISSION AUTHORIZE THE EXECUTIVE DIRECTOR TO ENTER INTO A CONTRACT FOR REBRANDING AND WEBSITE DEVELOPMENT SERVICES WITH PEOPLE -PEOPLE IN AN AMOUNT THAT WILL NOT EXCEED $95,000. COMMISSIONER PRESTON SECONDED THE MOTION, WHICH CARRIED UNANIMOUSLY. 2022 YEAR END FINANCIAL STATEMENTS Ms. Drennan recalled that the preliminary 2022 year-end financial statements were previously presented to the Commission on February 13th. As required by the State of Washington, the final annual report is being presented in the Budgeting, Accounting and Reporting (BARS) format and will be submitted to the State Auditors Office and available on the Port's website later in the week. Finance Committee members were provided the 2022 Annual Report for review on April 7th, and all have acknowledged that they reviewed it. Ms. Drennan reviewed that she presented the 2022 Balance Sheet and Income Statement at the February 13th meeting. The attached Statement of Net Position shows the same information as the Balance Sheet but may be presented a little differently. The Statement of Revenues, Expenses and Changes in Fund Net Position shows the same data as the Income Statement, but it is less detailed than the previous presentation. There were no major changes to the financial statement numbers since the February 13th meeting. The minor changes were 2022 invoices that came in after the February 13th meeting in the amount of $2,423, and net income was reduced by that amount. Ms. Drennan announced that the Statement of Cash Flows (Page 13) is a report that wasn't presented at the February 13th meeting and shows the sources and uses of cash in 2022. Operating activities provided net cash of $4.1 million. It is important that organizations regularly produce positive cash flow from operations, as this is the daily activity of the organization. She highlighted the following: • Noncapital financing activities provided net cash of $633,000, and these activities include proceeds from property tax income and operating grants. Q • Capital and related financing activities used net cash of $3.2 million. Cash flows include purchases and construction of capital assets, capital grants and interest paid on leased assets, which are the leased copy machines that are now subject to Government Accounting Standards Board (GASB) Statement No. 87. • Investing Activities provided net cash of $650,000. Cash flows from investing activities include Packet Pg. 171 vv...+..v�+...., rl ... ....I.....-...- ..F I�r,r +....... ..... ... r+vv....�+r ...�.d �r,+.......+ F....... +4... fl...+.. �.... ... r+w......+.. IIIQLUIILY QIIU PUIL.IIQJCJ UI IUIIL,.-LCI III IIIVCJLIIICIILJ QIIU IIILCICJL IIUIII LIIC rLJILJ IIIVCJIIIICIIIJ. 7.3.a • Total cash increased by $2.2 million in 2022. As per the Cash Flow Model, excess funds over and above the other reserves have been moved into the Capital Replacement Reserve to pay for future capital projects. The Commissioners congratulated Ms. Drennan for a very well-done report. 1ST QUARTER 2023 FINANCIAL STATEMENTS Ms. Drennan presented the 1st Quarter 2023 Financial Statements, noting that revenues generally trended up from $2.2 million to $2.8 million in 2022 and expenses ranged from $1.5 million to $1.8 million. As adjusted by the Consumer Price Index (CPI) with 2018 as the base period, revenues ranged between $2.1 and $2.3 million and expenses ranged between $1.5 and $1.7 million. Net income generally trended up, ranging from $500,000 to $1 million. Adjusted by CPI, net income ranged from $505,000 to $836,000. Actual to budget, revenues were $209,000 greater than budget and expenses were $273,000 less than budget. This will not likely continue as the Port enters its busy season. Gross profit for the 3-month period was $2,283,000, which is $43,000 greater than budget. Net income for the same period was $1,002,000. She highlighted the following items: Marina Operations Revenue Actual to Budget • Net Guest Moorage revenue was $16,812, $10,188 (38%) less than budget. This is likely a timing situation. • Permanent Moorage revenue was $1,155,851, $12,600 (1%) greater than budget. • Dry Storage revenue was $187,073, $15,000 or 7% less than budget. This is likely a timing issue, as well. • Financial occupancy for Permanent Moorage was 99%, and 98% was budgeted. Financial occupancy for Dry Storage was 84%, and 92% was budgeted. This variance is anticipated due to the time of year. Rental Properties Revenue Actual to Budget • Total Rental Property revenue to date was $745,201, $40,451 or 6% greater than budget. Operating Expenses Actual to Budget m • Operating expenses before depreciation for the 3-month period were $1.3 million, $246,000 or 16% E less than budget. r Q • Employee Benefits were $195,245, about $10,000 or 5% less than budget. This is primarily a timing situation. • Payroll Taxes were $67,311, a variance of $15,000 or 18%, again because of a timing issue. • Repair and Maintenance expenses were $56,835, a variance of $88,415 or 61%. This is primarily a function of utility. • Salaries and wages were $591,377, a variance of $91,373 or 13%. Packet Pg. 172 • Utilities were $141,763, a negative variance of $18,013 or 15%, which is a function of cold weather. Other Income and Expenses • Interest income was $224,065, which is a positive variance of $159,315 or 246%. • Overhead was negative in the 1st Quarter of 2023 as a result of some transactions associated with bonds that were purchased at a discount in December of 2022 and January of 2023. Generally Accepted Accounting Principles state that you amortize the bond premium or discount over the life of the bond if the bond is noncallable. However, if it is callable, you amortize it over the noncallable portion. Both bonds were callable shortly after the Port purchased them, so the discounts of $117,370 and $32,222 were amortized in the first quarter of 2023. Because the transaction increased interest income, the Overhead Cost Center generated more revenues than expenses in the 1st quarter. There will be a negative allocation in the Marina and Rental Properties Overhead line items. This is simply a book transaction and no money was exchanged. Net Income • Net income after depreciation for the 3 months ending March 31st was $1,002,000, or $482,000 greater than budget. Marina Actual to Budget • Revenues and expenses trended upward to a high of $1.6 million in 2023 and expenses ranged between $1 million and $1.1 million. • Net income trended upwards to $603,000 in 2023. • Operating revenues were $2,500 greater than budget and expenses were $280,000 less than budget. • Operating revenues were $1,628,000 or $2,250 greater than budget. • Operating expenses before depreciation and overhead were $759,000, or $88,750 (10%) less than budget. • Net income was $603,000 or $283,000 (88%) greater than budget. Rental Property Actual to Budget o r- • Rental property revenues ranged from $650,000 to $750,000 and expenses ranged from $350,000 to a r $425,000. The Port subsidized the Harbor Square Property with property tax revenue in 2007 through 2019, and this subsidy was removed so that the numbers better represent what is actually happening. Net income ranged from $265,000 to $399,000. Q • Actual to budget revenues were $40,000 greater than budget and expenses were $159,000 less than budget. • Operating revenues were $745,000 or $40,250 (6%) greater than budget, and operating expenses before depreciation and overhead were $201,000 or $55,250 (22%) less than budget. • Net income was $399,000 or $198,785 (99%) greater than budget. Packet Pg. 173 Investing Summary • As of March 31st, the Port had 18 long-term investments. • Cash and investments increased by $1.9 million in 2022, and this was added to the Capital Replacement Reserve in the 1st Quarter of 2023. The Capital Replacement Reserve is currently at $18,763,000. • The Environmental Remediation Reserve is currently $1,081,000 and the Public Amenities Reserve is currently $552,000. • As bonds are being called or maturing in 2023, the Port will continue to invest them using the laddering method, increasing the ladder rungs from $500,000 to $1 million. Commissioner Orvis observed that the Port has a good start (Capital Replacement Reserve) on its share of a grant to replace the North Seawall. However, Ms. Drennan reminded them that about $5 million of the reserve would be used to fund the new Ad ministration/Maintenance Building. 1ST QUARTER 2023 PORT OPERATIONS REPORT Mr. Baker presented the 1st Quarter 2023 Port Operations Report, highlighting the following: • Water Moorage. They reached a 5-year low in terminations and turn -over ratio. There were 13 terminations in the quarter and a turnover ratio of 1.96, which is the same as in 2022. At the end of the quarter, there were 352 members on the waitlist, which is just below the 355 at the end of 1st quarter 2022. Demand is holding strong. • Guest Moorage. There were decreases across the board, with 321 total nights in 2023 compared to 420 in 2022. That's a decrease of 24%. The number of boats was also down 29%. This trend holds true for the Fuel Dock and Public Launch, as well. There were only nine days of open fishing in the 1st quarter of 2023. • Document Compliance. At the end of 1st Quarter, insurance compliance was at 86% and registration compliance was at 80%. • Dry Storage. Dry Storage had an 81% occupancy rate at the end of 1st Quarter of 2021, with 53 total trailers stored. Launch activity decreased by 35% due to less fishing. Total boat moves for the quarter were 835, which is an 18% decrease compared to 2022. • Boatyard and Travelift. Sling time with pressure wash increased, but all other categories were down. There were 25 total treatments through the pressure wash system. Atenant special ran from early February through early March, and 22 people claimed the offer of 25% off haul -out fees. Packet Pg. 174 7.3.a • Fuel Dock. The number of gallons of gasoline pumped decreased by 33%. The price per gallon for unleaded fuel was $4.96 at the end of the quarter, which is $.24 less than 2022 prices, and diesel decreased by $1.14. Pricing surveys continue to show that the Port's fuel price for unleaded was $.15 lower than average and diesel was $.06 above average. Commissioner Orvis asked about the long- term forecast. Mr. Baker responded that, as fishing opportunities dwindle, he expects fisherman to exit boating or move to a different type of ownership that lowers their overhead and allows them to get on the water when they want to. Boats designed for fishing don't convert well to cruising. However, there is o a still some optimism that fishing opportunities will improve. • Public Launch. Round-trip launches decreased by 41% or 73 fewer round-trip launches compared to 2022. One-way launches increased by 22% or 28 more trips. • Staff Training. All applicable staff completed HAZWOPPER refresher training, and all staff completed first -aid, AED, and CPR training. In addition, the Operations Staff and select Facilities Staff attended training for the Public Launcher, and four staff members earned their train -the -trainer certification • Project Hours. The operations team devoted hours to a number of projects. • Water Samples. Water samples in 1st quarter were good, but this will likely change in 2nd quarter New oyster shells were installed, and samples were collected in both March and April. They exceeded one benchmark, per sampling month. • Security — Police Activity. On -View Activity counts anytime that security notices suspicious activity. As the weather gets warmer and the park is used more heavily, policing can become more of a task. The team has done a good job of fostering a relationship with the Edmonds Police Department, and their response times have been very quick. Commissioner Orvis asked if Security Staff have experienced problems with people sleeping in vehicles and tents on Port property, and Mr. Baker answered that they deal with two or three situations a week. Staff does a good job of identifying the situations before the campers are settled in and become a problem. 1ST QUARTER 2023 HARBOR SQUARE REPORT Ms. Williams presented the 1st Quarter 2022 Harbor Square Report, highlighting the following: • Gross projected revenue was up 10.6% or roughly $55,000 over the same period in 2022. This was due to a consistent occupancy rate and a high CPI rate, which is the basis for the majority of annual adjustments. • The occupancy rate at the end of the 1st Quarter was 91.92%, up 1.55% from the occupancy rate of 90.37% in 1st Quarter 2022. Packet Pg. 175 • No leases ended in Quarter 1, and there were no new leases. There were five lease extensions and an assignment of a tenant in Building 2. • Major projects included paver repairs at the Harbor Square monument sign. The damage was likely caused by the company that installed the fiber-optic cable. Other projects were Building 2 restroom fan replacement and major sofit repair at Building 2 as a result of water damage. Commissioner Johnston asked if the pavers were broken, and Mr. McChesney answered that none were broken. However, they were sinking due to the wheel loads of the large trucks and needed to be reset. • There were no incidents to report. a Commissioner Grant asked if any additional work has been done to address windows that were leaking and causing damage. Mr. McChesney answered that the Port had to pause its plan to replace the atrium windows. The design and engineering work has been done, but staff is currently bogged down with bringing the new Administration/Maintenance Building on line. Once a Certificate of Occupancy has been issued for the new building, there should be sufficient staff resources to move forward with the atrium window replacement project. He recalled that they discussed a sequencing strategy, starting with Building 4. His best guess is that the work would proceed in the 1st quarter of 2024. Commissioner Johnston asked if there is a cost estimate for the window project, and Mr. McChesney answered that they haven't perfected the plan to that level yet. DARK FIBER DISCUSSION Mr. McChesney briefly introduced the topic, noting that Commissioner Grant submitted a proposal to be considered. He recalled that the dark fiber issue goes back about 12 years, with various approaches being considered over that time period. From the Port's point of view, they have struggled and continue to struggle to make a business case for it. Commissioner Grant reviewed that, in 2005, the Department of Homeland Security (DHS) started pushing for all critical infrastructure to have fiberoptic, primarily because it is fast, resilient and efficient. c E At that time, the City of Edmonds was given 24 strands, enough to serve the entire Edmonds w O community. The City's current government connections are the Edmonds Center for Performing Arts, _ Public Safety Building, City Hall and the Sewer Treatment Plant. Two commercial companies, Rick a r Steves' Europe Building and the 2nd Avenue Building, are connected and use the service for a fee. The c m E most efficient way to extend fiberoptics between Harbor Square and the new building is to use radar technology, which is highly -efficient and very secure. Many ports around the world use the Radwin r r Q System, and they offer programs as low as $2,000. The purpose of this discussion is to review history and get feedback from the Commission and staff. Down the road, anyone that can will likely change over to optic fiber for its resiliency, efficiency and speed. Mr. McChesney pointed out that there is already dark fiber terminating at Harbor Square Buildi Packet Pg. 176 Commissioner Grant recalled that the City pitched fiberoptic to Maverick, but they felt it was too costly at the time. Three or four years ago, the Second Avenue Building was charging each tenant $82.50 per month to use the fiber. Commissioner Orvis asked if Building 2 is currently managing the fiber, and Commissioner Grant answered no; it was installed but never lit up. If the Port were to activate the fiber and charge tenants for its use, Commissioner Orvis asked what advantage it would be to the tenants over what they have now. Commissioner Grant pointed out that the current carriers, Ziply and Comcast, don't yet have fiber. As they look toward the future, he suggested that having faster and more resilient internet would be attractive to potential tenants. a Mr. McChesney suggested they need to verify as to whether or not Ziply has fiber in the vicinity. Ms. Drennan advised that she would be bringing a proposal to the Commission at their next meeting to approve a fiber contract with Ziply. In addition, Ms. Williams stated that both Comcast and Ziply have now installed fiber to Building 2 at Harbor Square, and two tenants are already on board as customers. Mr. McChesney added that the dark fiber that terminates at Building 2 was installed by the City without an interlocal agreement with the Port. At the time, the Port couldn't make a business case for it and declined to participate. Commissioner Orvis said he was under the impression that dark fiber had been run to the ferry terminal, and Mr. McChesney said that is his belief, as well. Commissioner Grant said the City has a contract with the Washington State Department of Transportation (WSDOT), and the Department of Homeland Security required the fiber to be extended to the ferry terminal. He confirmed with WSDOT that they would be willing to enter into an agreement with the Port. WSDOT recently added 12 new fibers into the new Sewer Treatment Plant. Commissioner Grant agreed that the Port must be able to make a business case in order to support extending the fiber to Port property, and perhaps that is something to consider when doing strategic planning. His question is whether it would cost more to put the necessary equipment on top of the new building at a later time as opposed to now. Mr. McChesney said he believes the cost would be about the same, whether now or later. Darrol Haug, Edmonds, said he is currently a member of the Edmonds Economic Development _ Commission, and was a member of the commission that approved the fiberoptic process to begin with. a - He emphasized that he was not present to speak on behalf of either the previous or current c E commissions. However, he was Chair of the Citizens Technological Advisory Committee, which was the r original group that worked with the Department of Homeland Security and others to install the fiber. He r Q stated that, in reality, the City wants to move forward with a more aggressive marketing campaign to attract high-tech companies to Edmonds. They are part of the creative district and creative isn't just art; it also includes high-tech, internet type industries. Members of the City Council have expressed their intent to find a strategy to partner with the Port, if possible, or do its own thing to use fiberoptic to attract businesses to Edmonds. In fact, he and former Commissioner Bruce Faires made som Packet Pg. 177 original sales calls to people throughout the City to generate the initial interest. He remains committed to trying to advance the use of fiber to attract new high-tech businesses to Edmonds. Commissioner Grant pointed out that because WSDOT is managing the fiber at the ferry terminal, it will likely be fixed quickly if it goes down. Again, he is interested in looking towards the future by starting the discussion. If they can build a business plan for it, fiberoptics would attract the types of businesses the Port wants at Harbor Square. These businesses may generate sales tax, which would help the City, as well. Commissioner Orvis said he can understand the advantages of fiberoptics to attract high-tech businesses to Edmonds, but the City has already installed dark fiber up to Building 2 at Harbor Square They just need an interlocal agreement with the City to activate it. Because of permitting problems, he doesn't foresee significant changes at Harbor Square. About the only reason he can see for extending dark fiber to the west side of the tracks is if the Department of Homeland Security was going to put an emergency management headquarters in the Port's new building or something else that would take volumes of communication equipment that couldn't handle interruption and parallel systems are needed. Mr. Haug said one wildcard is how the City moves forward with the implementation of 5g and its associated towers. They have some leverage to encourage providers to extend the service to include others, depending on how the agreements are laid out. While there isn't a clearcut answer, there is willingness on the part of the City to try and partner wherever possible with the Port to advance high technology in the City of Edmonds. Mr. McChesney said that, from the Port's point of view, they supported the initiative by Mr. Haug and former Commissioner Faires to promote economic development, but they just couldn't make a sufficient business case to move forward with fiberoptic installation. Conceptually, Commissioner Grant's proposed approach seems good. The conundrum is figuring out what the demand side looks like. He suggested remanding the discussion to the Strategic Planning Retreat. At that time, staff could provide better information to help the Commission identify steps for moving forward. Commissioner Preston asked if it would be appropriate to consider satellite opportunities as part of the discussion. More and more people are going with satellite for internet. Ms. Drennan pointed out that this wouldn't be a good choice for well -populated areas. From a security standpoint, the Port wouldn't want to be on a Wi-Fi system. Resolving problems that come up could also be an issue. Commissioner Grant summarized that, in today's world, radar technology is extremely secure. Other ports use it. Again, he would like to continue the discussion at the retreat so that all opportunities can be thoroughly considered. The Commission agreed to continue the discussion at the upcoming Strategic Planning Retreat. Packet Pg. 178 7.3.a Mr. McChesney recognized and thanked Mr. Haug for his work upfront on the fiberoptic situation in Edmonds. He has put in a lot of time and volunteer effort trying to perfect the concept. Although it didn't go anywhere at the time, all of the particulars are well in play again. CITY OF EDMONDS REPORT Edmonds City Councilmember Teitzel advised that the legislature considered 19 bills related to affordable housing this past session, and many were passed by both the House and Senate and are now heading to Governor Inslee for signature. He provided a list of the bills for the Commission's information. He commented that it will be very interesting to see how House Bill 1110, which allows multiple dwellings on single-family lots, plays out in Edmonds. Over time, they expect to see a lot more density in the single-family zones, which is concerning from an infrastructure standpoint. He suggested that an unintended consequence will be an increase in the value of lots. Councilmember Teitzel said there was a presentation at the last City Council Meeting on a Memorandum of Understanding (MOU) between the City of Edmonds and WSDOT regarding the Unocal property. The purchase has been pending between Unocal and WSDOT for a number of years, pending the cleanup. They are hoping that the Department of Ecology will sign off on the cleanup by the end of the year, and the sale can then proceed to WSDOT. Once that happens, the City would like to be first in line to purchase the property if it is put up for sale. The Transportation Budget that was just passed by the legislature includes a clause that gives Edmonds first right of purchase through mid- 2025. Commissioner Orvis asked if the City currently has funding to purchase the Unocal property, and Councilmember Teitzel answered not at this time. He noted that the MOU states that the City would be able to purchase the property at fair market value, as required by law. WSDOT's pending deal with Unocal is for about $8.2 million, which was fair market value back in 2005. The current value is likely greater, depending on zoning and the types of uses allowed. He said the fair market value will be established based on current zoning, which allows commercial and residential uses. The City's intent is to restore the site and use it for open space. The property cannot be rezoned at this point because it would benefit the City, but they could rezone it once acquired. Councilmember Teitzel reported that, prior to the presentation, the City Council received a large number of written comments from citizens, both for and against signing the MOU. Commissioner Orvis asked if an MOU is really necessary given that the Transportation Budget includes a clause that gives the City first right of purchase. Councilmember Teitzel agreed that the clause removes some of the urgency for an MOU. The City Council hasn't yet signed the document, and it will be brought back for further discussion in May. Packet Pg. 179 Councilmember Teitzel further reported that there was also discussion about drafting a letter from bot 7.3.a the City Council and Mayor Nelson to Governor Inslee indicating that the City's intent for the property is open space, preservation and addressing ecological issues. Specifically, the letter would ask the State to consider retaining ownership of the property in perpetuity in partnership with the City of Edmonds, who would restore it. It is hoped the letter can be ready for City Council signature by early May. A copy of the letter was forwarded to Port Commissioners for feedback. Councilmember Teitzel said he met with Commissioner Grant at the Fishing Pier Parking Lot, which is jointly owned by the Port and City. As previously discussed, there are quite severe problems with tree roots raising the asphalt and concrete, particularly where the two Americans with Disabilities Act (ADA) stalls are located. He is currently working with the City's Public Works Department to get the damage fixed, and he notified the mayor of the situation, as well. EXECUTIVE DIRECTOR'S REPORT Mr. McChesney noted that his last meeting as Executive Director of the Port will be May 8th. Ms. Drennan announced that the Port received a $250,000 check today from the Snohomish County Office of Recovery and Resilience for a COVID grant award. COMMISSIONER'S COMMENTS AND COMMITTEE REPORTS Commissioner Preston reported that he attended the Edmonds Economic Development Commission meeting on April 19th. He appreciates how Commissioner Haug digs into issues and knows a lot about what is going on in Edmonds. Commissioner Preston announced that he would attend the Economic Alliance of Snohomish County's (EASCs) annual meeting, forecasting and awards on April 26th. In addition, he plans to attend a general meeting of the Edmonds Yacht Club on April 25th. Commissioner Harris advised that she would attend the EASC Coffee Chat on April 25th, where housing will be the topic of discussion. Commissioner Grant reported that he has been following Edmonds City Council and Woodway Town Council Meetings. As mentioned earlier by Councilmember Teitzel, they met to discuss the situation at the Fishing Pier Parking Lot, and he is working on a resolution. He said he and Commissioner Preston also were present during the recent dock cleanup. Ms. Crawley filmed the event, including interviews with Commissioners and students. Packet Pg. 180 Commissioner Orvis announced that the legislative session ended on April 23rd, but bills on concurre 7.3.a calendars require reconciling the difference between the two versions, and bills that were approved have been passed on to the governor for signature or veto. They include: • Apprenticeship program. • Freight mobility. • Vacancies in Special Purpose Districts. The rules were changed so that after a vacancy occurs, the remaining members of a governing body must nominate at least once candidate at a meeting. They must then post notice of the vacancy and the name of the nominated candidate(s). The public would then be allowed make nominations. The qualified person who is selected, if it is within 120 days, would serve the remainder of the term of the individual that is replaced. If it is more than 120 days, they will have to run for election at the next election date. Port Attorney Stephens said she would have to double check the timelines. The new process is backwards to how the Port of Edmonds and many other special purpose districts typically do it. Usually, an opening is posted and the public is allowed to submit nominations, and then the commission goes through a process of selecting a final candidate. She said she is keeping a close eye on the legislation, and the effective date probably won't be until the end of July. That means it won't impact how the Commission fills the upcoming vacancy. • Budget. No one knows how the final budget will end up. • Port Electrification. They are still working on this legislation, which will likely stay in committee. • Snake River Dams Alternative. The Governor asked for $5 million for a study, but ports and others have asked for an additional $5 million to look at the impact on freight mobility if the dams are removed. Commissioner Orvis reported on his attendance at the EASCs Coffee Chat on regional transportation, highlighting the following: E 0 U I • Roundabouts are in the works at large intersections. c • The County's six -year plan concentrates on infrastructure and fixing traffic problems at growth sites 0 (i.e., Marysville and Arlington). w 4- 0 • A traffic study is needed in order to apply for federal grant funding, but you can't initiate a traffic study r_ 0 until you know what you are going to put in. a r c • The Governor has a big traffic plan, but there in insufficient staff to implement the program. Marysville, for one, is providing engineers to the state to staff traffic design in their areas. r r • Growing cities must plan for residents to safely get around. Q • Stormwater facilities, snow removal, culverts, etc. seem to have been overlooked in much of the rulemaking they will now have to live with as a result of recent legislation. • The design/build model is becoming much more popular for roads and infrastructure. Commissioner Johnston reported that the Port has a signed employment agreement with Ang Packet Pg. 181 Harris, wno wiii serve as the Norrs new Executive uirector effective May zzna. i nis culminates a nigni 7.3.a successful search for Mr. McChesney's successor, and the outstanding result speaks for itself. He thanked everyone who was involved. With the pending transition of Commissioner Harris to the Executive Director position, the search for her replacement on the Commission has started. With the help of Commissioner Orvis, he has crafted an announcement with an updated map of District 1, which includes most of the north end and the east edge of the Port District. The Commission must appoint a new Commissioner within 60 days of Commissioner Harris vacating her seat on May 21st. The plan is N to publish the announcement on May 9th, with a deadline date for responses of May 23rd. Port a Attorney Stephens has advised that they don't have to conduct interviews, but they probably should if as there are multiple candidates. m With a new Executive Director and new Commissioner in June, Commissioner Johnston suggested they invite Frank Smelick from the Washington Public Port Association to make a special presentation to the Commission and staff on the responsibilities of authorities. Prior to the presentation, the Commission and staff could have a discussion to better understand what is and isn't working and to get a feel for whether their current relationships are working well enough. Commissioner Johnston reported that he also attended the EASCs Coffee Chat on regional transportation. As Commissioner Orvis reported, the primary focus was on north central Snohomish County. He announced his plan to attend the Washington Public Port Association's Spring Meeting on May 16th through 18th. Darrol Haug thanked all the past and current Commissioners, staff and Executive Directors for all of their good work since 1949. They have been very helpful for the community. ADJOURNMENT The Commission meeting was adjourned at 8:47 p.m. Respectfully submitted, Jay Grant Port Commission Secretary TAGS: 1st Quarter 2023 Financial Statements (https://www.portofedmonds.org/tag/1st- quarter-2023-financial-statements/), 1st Quarter Marina Operations and Harbor Square Q Reports (https://www.portofedmonds.org/tag/1st-quarter-marina-operations-and-harbor- square-reports/), 2022 Year End Financial Statements (https://www.portofedmonds.org/tag/2022-year-end-financial-statements/), 2023 Port of Edmonds Commission Meeting Minutes (https://www.portofedmonds.org/tag/2023-port-of- edmonds-commission-meeting-minutes/), Contract No 2023-448 Rebranding Servi Packet Pg. 182 [ILL[JS.//vvwvv.JJurwIeunIunu5.UIY/Ldy/l:unlydGL-neuIdIIU IIIY-JeIVIGeS/), UdIK 7.3.a Fiber (https://www.portofedmonds.org/tag/dark-fiber/) Packet Pg. 183 PORT COMMISSION OF THE PORT OF EDMONDS MINUTES OF REGULAR MEETING (Via Zoom, Hybrid Meeting) May 8, 2023 COMMISSIONERS PRESENT Steve Johnston, President Jim Orvis, Vice President c a Jay Grant, Secretary Angela Harris r David Preston r E E 0 U COMMISSIONERS ABSENT = L STAFF PRESENT R m Bob McChesney, Executive Director N Brandon Baker, Director of Marina Operations 0 Tina Drennan, Manager of Finance and Accounting M N Brittany Williams, Manager of Properties and Economic Development 0° OTHERS PRESENT Jordan Stephens, Port Attorney Neil Tibbott, Edmonds City Council CALL TO ORDER President Johnston called the meeting to order at 7:00 p.m. FLAG SALUTE All those in attendance participated in the Pledge of Allegiance to the American Flag. CONSENT AGENDA COMMISSIONER GRANT MOVED THAT THE CONSENT AGENDA BE APPROVED TO INCLUDE THE FOLLOWING ITEMS: A. APPROVAL OF AGENDA B. APPROVAL OF PAYMENTS IN THE AMOUNT OF $255,052.01 C. APPROVAL OF RESOLUTION NO. 23-02, BANK SIGNATORY AUTHORIZATION Packet Pg. 184 7.3.b COMMISSIONER PRESTON SECONDED THE MOTION, WHICH CARRIED UNANIMOUSLY. Commissioner Grant referred to Resolution No. 23-02 and expressed his opinion that it would be appropriate for a Commissioner, specifically the Chair of the Finance Committee to have bank signatory authorization, as well. Ms. Drennan responded that it isn't typical to have a Commissioner on the group of signators. She was recently chatted with other port finance managers and learned that most only require one signature on checks, and the Port requires two. Most ports simply require a signature from the finance director. Commissioner Orvis pointed out that, currently, multiple people are authorized to sign checks. Even if the motion is approved, it wouldn't require a Commissioner signature on checks. The Commissioner would be just one of the people who could sign checks. Commissioner Grant said he would expect that, under most conditions, a Commissioner would not have to get involved. However, the bank would not even talk to a Commissioner unless he/she is listed as a signator. Commissioner Johnston pointed out that a Commissioner could take an authorized signator with them to the bank to get access. Commissioner McChesney said he understands the point, and in the past, a Commissioner has had bank signatory authorization. However, it isn't mandatory and has never been mentioned as something necessary by the auditor. Commissioner Orvis said he has had signatory authorization in the past and has signed checks on at least a few occasions when other signators were unavailable. The Commissioners agreed to remand the issue to the Finance Committee for further discussion and a recommendation. PUBLIC COMMENTS Mr. McChesney entered the following letter from Charles Malmgren into the record: "1 was disappointed to hear about the project to "Re -Brand" the Port of Edmonds. Since re -branding came up in your Executive Director interviews, I assume you considered it important. With a motto like "Hold what you Got and Grab More" floating around, 1 think it's more important to improve the Port's ESG score first. Not once during the Executive Director candidate interviews 1 attended was mention made of Taxpayers, Tenants or the Environment. Numerous times 1 have been told that the Port of Edmonds is an autonomous, independent special purpose corporation. I don't know how independent it is, considering it maxes out the taxes it takes from the area, gets its retirement and medical from the State of Washington, pays no regulatory property tax and grabs any grant, State, County or Federal it can get its hands on. Packet Pg. 185 About the Port Executive Director: From reading statutes it appears that the Washington State Legislature has directed that each Port will have Commissioners who set policy and hire an Executive Director to implement them. Recently, the Port's Executive Director in consultation with his design team had plans drawn, submitted and approved for building the new Administration and Maintenance Building. At no time were those plans hidden from you. Included was the size and location of the Commission Meeting Room: Second Floor, building center. Since the Commission meets for approximately 4 hours a month, includes generally less than 10 people and mostly during hours of darkness, it was reasonable to center the meeting room in the building and keep the remaining exterior o space for lease. a m m At some point after the walls were up, you took a tour of the new space, realized it did not have the r E E size and windows you felt your due and unanimously directed a redesign and rebuild for a grand 0 U second floor meeting room. How about "Re -Branding" it the Administration, Maintenance and o Commission Building? c� 0 m More than doubling the size and cost of the Commission Meeting Room so that you can get an a� N r occasional glimpse of the BN Yard and the Marsh seems selfish. You now get the Million Dollar View 0 you feel is your due and 1 wonder if the residents of Edmonds and Woodway agree? How many years N of their hard-earned property taxes does your new room represent? Or our rent? LO N N r Please direct your efforts towards improving the Ports ESG score first and "Re -Brand" later." 7 a� c There were no other public comments. PRESENTATION BY DAVID MARTEN FROM ELEVATE E E 0 U Ms. Williams reviewed that the Port entered into a contract with Elevate Government Affairs on March 1, 2023 for federal lobbying and grant services. The contract, which runs through the end of 2023, o E focuses on assisting the Port with obtaining state and federal funding for the North Portwalk and w Seawall Restoration Project. She introduced David Marten from Elevate Government Affairs, who was 0 Kayla. present to provide an overview of contract goals and funding opportunities. She advised that Kayl V_ a Roberson from Elevate Government Affairs will be a major partner, as well, but was unable to join the E meeting. She shared information about their background, qualifications and work experience. c� a David Marten, Elevate Government Affairs, briefly introduced his firm, as well as each of the firm's team members. He advised that the firm represents everything from local governments to technology firms, universities, etc. Current clients include the Port of Seattle, Northwest Seaport Alliance, and Chelan - Douglas Regional Port Authority. Mr. Marten emphasized that successfully pursuing federal grand funding will require generatin Packet Pg. 186 support from the local community, elected officials and federal agencies. They are currently working with Port staff to formulate an outreach plan, recognizing that the messaging will be somewhat different for each of the groups. The Port can take the lead in reaching out to Port tenants and immediate neighbors, and they plan to reach out to the Chamber, Rotary, etc., as well. They will work with government stakeholders that that will have a regulatory or physical presence around the project, including the City of Edmonds, Snohomish County, State Legislators, Washington State Department of Transportation, etc. It will also be important to reach out to the State's Congressional Delegation (Senators Murray and Cantwell and Representative Larsen), as well as a number of federal agencies. m m Mr. Marten briefly reviewed the four federal funding opportunities that their effort would focus on: • Rebuilding America Infrastructure with Sustainability and Equity Program (RAISE). This is an annual United States Department of Transportation (USDOT) program that funds surface transportation projects, generally smaller to mid -size, that have significant local and regional impact. The award minimum is $5 million for projects in urban areas, and the maximum funding is $24 million or $45 million, depending on which sub -pot of funds is used. The maximum federal cost share is 80%. Applications are due February 2024, but a lot of work will need to be done prior to that date. They expect awards to be announced mid-2024. • Building Resilient Infrastructure and Communities Program (BRIC). This is a Federal Emergency Management Agency (FEMA) program that funds pre -disaster mitigation activities, such as flood prevention. All applications are submitted by the State of Washington, so they will have to work closely with the State. Maximum grant size was recently increased from $10 million to $50 million, and the maximum federal cost share is 75%. Eligible projects must reduce or eliminate the risk and damage from future hazards. In the Port's case, extreme hazards include winter storms, tsunamis, flooding, and collapse of the seawall. All of these could have a significant impact on Edmonds. Applications are due April 2024, and awards will be announced in 3rd Quarter 2024. • Promoting Resilient Operations for Transformative, Efficient, and Cost -Saving Transportation (PROTECT). This is a new USDOT program to fund projects that make transportation infrastructure more resilient to climate change and extreme weather. This program is focused around federal highways and is under the Federal Highway Administration. For this application, they will need to demonstrate via modeling the impacts a collapsed seawall and an extreme flood event would have on the state highway and the larger community. There is no maximum award size, but it will be highly competitive. The maximum cost share is 80%. • Land and Water Conservation Fund (LWCF) Outdoor Recreation Legacy Partnership Program. This program is administered through the United States Department of Interior (USDOI) at the federal level, and they will make the final determination. However, the initial round of selection will be done by the Washington State Recreation and Conservation Office (WSRCO). Applications are due to the Packet Pg. 187 in November 2023, and they will make a recommendation around April or May 2024. The USDOI will make the final decision next October. Maximum award size is $9.8 million, and the maximum federal cost share is 50% Mr. Marten cautioned that, for some reason, seawalls have never been at the center of any of the federal infrastructure programs. Most are focused on roads and highways, transit and ferries. They will need to carefully define the impacts to the community, multimodal transportation and the Port, itself. How they communicate the importance of the Portwalk will be critical. They must point out the flood - protection benefits, pedestrian benefits, etc. Mr. Marten reported that he and Ms. Roberson have had some introductory brainstorming meetings with Ms. Williams, Mr. McChesney and Commissioners Harris and Grant, talking about outreach and grant strategies. He will continue working on a communication plan and identifying potential impacts as previously discussed. He will also prepare a timeline for outreach to the various stakeholders and preparation of the grant application. They will subcontract out some of the elements that are required for the grant application. Mr. McChesney asked if the strategy is to get one large grant or several smaller grants. Mr. Marten said a variety of grants could cover the costs when it comes to construction of the seawall. It would be great to secure one large grant, but that may not be the end result. Money is tight and they try to spread it around as much as possible. If they offer less than the requested amount, the Port should probably accept. As long as the Port doesn't exceed the total federal cost share, they can accept multiple grant offers. Commissioner Preston asked if one grant program would need to know about the other grant programs the Port submits applications for. Mr. Marten explained that, in the process of applying for a grant, the Port will be asked to name its funding sources, but they don't typically ask if you are applying for any other grants. In terms of the grant agreement, the Port will need to meet certain assurances, one of which is demonstrating that your cost share is not in excess of what the grant requires. Commissioner Johnston noted that a similar project is the City of Seattle's seawall. He asked if Mr. �° Marten knows what grants they got, if any. Mr. Marten said the City of Seattle's seawall was done with Army Corps of Engineers funding. This funding is a years -long process requiring a whole host of authorizations through congress, etc. In the timeline the Port is working with (5-year service life of the c� a seawall) it doesn't make sense to apply for an Army corps of Engineers grant. Commissioner Preston pointed out that the City of Olympia also replaced a seawall. He suggest Mr. Marten research their funding sources. Commissioner Preston asked if the cost of subcontracting the technical analysis was included in the overall contract agreement amount, and Mr. Marten answered affirmatively. I Packet Pg. 188 7.3.b Commissioner Orvis asked Mr. Marten to explain why outreach to local stakeholders is important. Mr. Marten said it is important to communicate the impacts and benefits of the projects, as well as the timelines. The seawall and portwalk are key pieces of infrastructure for the community. Having letters of support from these groups when applying for grants can help demonstrate the value to the community. Letters of support from elected officials and government agencies will also be important. Commissioner Grant explained that each stakeholder needs to communicate why the projects are important to them. The people who review and approve grant applications don't have a lot of time, so they look for things upfront. It is important to understand that the goal of the grant applications isn't to sell a "pretty" portwalk. They need to sell the fact that they have a deteriorating seawall. Commissioner Preston suggested that the element of having a better, safer portwalk to attract people to the waterfront should also be part of it. Commissioner Grant responded that it would likely be the last 10%. When reviewing grant applications, they focus on the critical issues identified for each of the grant programs. The Port's application must emphasize these issues in order to be competitive. They must do a good job of selling the project locally and educating state legislators and agencies. Mr. Marten agreed that, in addition to community outreach, it is also important to provide rational from an economic perspective on why the project would be a good federal investment. It will be important to describe the intrinsic benefits of having more recreation and quality of life. However, the FEMA grant focuses on hazard mitigation, showing the enormous economic impact of investing in seawall repairs will be imperative. Commissioner Grant asked about the current rules for appropriation of federal funding. Mr. Marten said appropriations is a real mess right now. There is a lot happening this month, including debt ceiling negotiations that will impact what happens on appropriations. The appropriators in the House, unlike the Senate, are being told to write their bills to significantly lower fiscal levels. House Republicans are calling for some pretty significant cuts in programs, and there is a chance they will see less funding. A lot of the transportation budget, which includes the Department of Housing and Urban Development (HUD), is being taken up by housing dollars. Interest rates have risen, and the amount of money it takes to build a project or provide a loan to a low-income tenant is reflective of the market conditions. If legislators write a particular bill to a certain level, more of the money will be taken up by housing, and transportation funding will be less. Commissioner Preston asked if Port staff or the consultant have talked to the Edmonds Yacht Club c� (EYC). Commissioner Preston recalled that the EYC is concerned about potential disruptions that a impact their ability to rent space. However, they understand that, once complete, the project will make their facility more attractive. Ms. Williams said she has talked with the EYC on a number of occasions and provided a tentative timeline for the project. Commissioner Orvis recalled that the north seawall, failed several years ago. He asked if there are pictures of the damage caused by the failure that could be attached to the grant application a Packet Pg. 189 example. 7.3.b Mr. Marten concurred with Commissioner Grant that federal grants are big programs, but there are also big reasons why the Port's project should be a high priority. The firm's delegation is very good about communicating to federal partners about the unique circumstances and challenges in the Northwest. Commissioner Grant observed that it is helpful to have Senator Cantwell as Chair of the Commerce Committee, Senator Murray as Chair of the Appropriations Committee and Representative Larsen as Chair of the Transportation Commission. Mr. Marten agreed and added that the Transportation Infrastructure Bill raised the amount of money the grant programs are able to offer. Commissioner Preston asked Mr. Marten if he has a gut feeling as to the range of funding the Port could expect. Mr. Marten suggested that the Port should ask for the full 80% maximum federal cost share for the project, which is expected to cost around $18-$25 million. They can also look at state programs to help fill the funding gap. He expects the Port will be able to obtain the maximum funding, but it may come from a combination of grant programs. APPROVAL OF RESOLUTION NO. 23-03, AUTHORIZING INVESTMENT IN THE LOCAL GOVERNMENT INVESTMENT POOL Ms. Drennan explained that the Port is a member of the State's Local Government Investment Pool (LGIP), which describes itself as a "voluntary investment vehicle operated by the State Treasurer." Over 530 local governments have participated in the pool since it was started in 1986 to provide safe, liquid and competitive investment options for local governments pursuance to Revised Code of Washington (RCW) 43.250 The LGIP lets local governments use the State Treasurer's resources to safely invest their funds while enjoying the economies of scale available from a $15-26 billion pool fund investment portfolio. Ms. Drennan further explained that the LGIP's investment objectives are, in priority order: 1) safety of principal, 2) maintaining adequate liquidity to meet cash flows, and 3) providing a competitive interest rate relative to other comparable investment alternatives. The LGIP offers 100% liquidity to its participants. Its portfolio is managed in a manner generally consistent with Security Exchange Commission (SEC) regulated Rule 2a-7 money market funds. LGIP investment guidelines are spelled out in the LGIP Investment Policy (attached to the Staff Report). LGIP participants include all 39 counties in Washington State, all Washington cities with a population greater than 10,000, and 229 cities and towns total. It also includes 160 special taxing districts, 30 community colleges and universities, 7 state agencies, and 24 other public bodies. Ms. Drennan continued that the LGIP is a short-term investment option, and funds can be moved from the Port's bank account to the LGIP or from the LGIP to the Port's bank account within a coup) Packet Pg. 190 days. Staff time to initiate the transaction is about 10 minutes. She said she reviews the interest rates offered by the Port's bank and the LGIP on a quarterly basis. When interest rates were low, it didn't make a lot of sense to move funds from the Port's bank account to the LGIP, as the fees to transfer the funds would use up a lot of the possible interest gained. However, the current LGIP interest rate is 4.8294% and the Port's bank, WAFd Bank, is offering 3.03%. On a million dollars, that's about $1,500 difference in interest per month. She said she asked WAFd if they could meet the rate, but they couldn't as they have to collateralize 100% of the government funds invested in their bank. She spoke r_ with the Executive Director, and they agreed that the Port should start using the LGIP as an option for a m short-term investing. Ms. Drennan outlined that, as part of the change in executive directors, the Commission needs to change the Port staff authorized to make deposits and withdrawals. The previous resolution states that Mr. McChesney is authorized to make all amendments, change and alterations to the designation form, which states which Port staff are authorized to make contributions and withdrawals on behalf of the Port. The LGIP Administrator recommended that the Port change the staff person authorized to a title instead of an individual's name. She explained that when she transfers funds to the LGIP, she submits the deposit receipts for the Executive Director's review and approval. She sends the Executive Director the monthly statement for his/her review and approval. Quarterly, this information is reported to the Commission in the Investment Report. Ms. Drennan recommended the Commission approve Resolution No. 23-03 as presented. COMMISSIONER PRESTON MOVED THE COMMISSION APPROVE RESOLUTION NO. 23-03, AUTHORIZING INVESTMENT OF PORT OF EDMONDS MONIES IN THE LOCAL GOVERNMENT INVESTMENT POOL (LGIP). COMMISSIONER GRANT SECONDED THE MOTION, WHICH CARRIED UNANIMOUSLY. APPROVAL OF ADMINISTRATION/MAINTENANCE BUILDING CHANGE ORDER Mr. McChesney reviewed that, as previously reported to the Commission , the change order resulted o from the approved re -design of the Commission Meeting Room in the new Administration/Maintenance o a Building that is currently under construction. At the April 10th meeting, he reported that the initial c a� change order proposal from the general contractor (SpeeWest) came in at $253,240. Upon further E review with the design and project team, the Port rejected this amount and directed the contractor to a go back and take another look at all of the cost factors and contract credits, including subcontractors. This relook resulted in a revised change order amount of $152,540. Mr. McChesney explained that there are two caveats: 1. A big portion of the reduced amount is attributed to the contractor eliminating the imputed c Packet Pg. 191 "General Conditions" in the amount of $13,330. This cost tactor is a tudge against completion. That is to say, if the additional work extends the contract completion date, there would be the potential for extra cost relating to project management fees and site overhead. Depending on how much extra time actually occurs, some of this may be recoverable by the contractor upon completion and subject to good faith negotiation. 2. The City requires additional fire protection between the shop below and the Commission Meeting Room above. Although no final decision has been approved by the City, the design team has proposed a code -based work around that would void this necessity. In other words, no additional fire protection o should be required based on the Port's code interpretation. It is still under review, but at this stage, the a City's building Official has indicated a preliminary agreement with the Port's code classification. m r Mr. McChesney summarized that total change orders for the project to date are $222,252 (see itemized list attached to Staff Report). In the aggregate, the contract changes reflect a 3.06% cost escalation from the original contract, well within the range of what might otherwise be expected for this type of construction project. The standard tolerance is usually 15% (+/-). The Port is right on track with budget and schedule, anticipating completion sometime in August 2023. He recommended the Commission accept the revised Change Order 16 and authorize him to sign the contract revision as presented. Commissioner Grant complimented Mr. McChesney for saving the Port over $100,000 for this change order. Mr. McChesney credited the project team. Jackson Main reviewed the change order with a fine- tooth comb and the entire team has done an excellent job. COMMISSIONER GRANT MOVED THAT THE COMMISSION ACCEPT CHANGE ORDER (COP-16) AS PRESENTED AND FURTHER AUTHORIZE THE EXECUTIVE DIRECTOR TO SIGN THE REQUIRED CONTRACT REVISION ACCORDINGLY. COMMISSIONER ORVIS SECONDED THE MOTION, WHICH CARRIED UNANIMOUSLY. MISSION STATEMENT PROPOSAL Commissioner Harris reviewed that the Port's Mission Statement was established as a preamble to the Strategic Plan in 1992. Since that time, there have been significant changes to the Port's operating environment and Commission policies. Consequently, various comments and discussions suggested it might be time to review the document and make appropriate edits to update its overall applicability. Of particularly concern is that the Mission Statement, as currently written, is too long. It sort of represented a cross-section view of all the things the Port does instead of summarizing the basic mission, vision and values it should express and more succinctly. The issue was remanded to a Commission Subcommittee (Commissioners Harris and Grant), and their recommendation was attached to the Staff Report. Packet Pg. 192 7.3.b Commissioner Harris explained that a mission statement should define what you do, how you do it, an why you do it. It should be simple and straight forward. The proposed draft Mission Statement was formed after reviewing the Port's current Mission Statement, as well as mission statements from other ports. As proposed, the Mission Statement reads, "The mission of the Port of Edmonds is to provide value to our community through economic development, marina and commercial operations, waterfront public access and environmental stewardship." She noted that the Communications Committee has reviewed the draft statement and provided feedback, too. She commented that "waterfront public c 0- access" was used in place of just "public access" to emphasize the Port's location on the waterfront. Commissioner Preston suggested that they add "exceptional" before "value." He also suggested the term "economic opportunities" rather than "economic development." A lot of people equate development to building, and that isn't always the case. Lastly, he suggested the term "public access to the waterfront" instead of "public waterfront access.' The Commission discussed the proposed changes, but the majority indicated support for the subcommittee's original proposal. COMMISSIONER GRANT MOVED THAT THE COMMISSION ADOPT THE MISSION STATEMENT TO READ, "THE MISSION OF THE PORT OF EDMONDS IS TO PROVIDE VALUE TO OUR COMMUNITY THROUGH ECONOMIC DEVELOPMENT, MARINAAND COMMERCIAL OPERATIONS, WATERFRONT PUBLIC ACCESS AND ENVIRONMENTAL STEWARDSHIP." COMMISSIONER ORVIS SECONDED THE MOTION, WHICH CARRIED 4-1, WITH COMMISSIONER PRESTON VOTING IN OPPOSITION. Commissioner Harris advised that the next step, following adoption of the Mission Statement, will be the Strategic Action and Strategic Plan. CITY OF EDMONDS REPORT Dave Teitzel, Edmonds City Council, recalled that, at the last Commission meeting, he announced that the legislature had passed nearly 20 bills that relate one way or another to affordable housing and density. They apply to cities over 25,000, including the City of Edmonds. A number of those bills were forwarded to Governor Inslee today for his signature, including House Bill 1110. The City is anxiously waiting to see how the bills will all shake out. Councilmember Teitzel reported that he and Councilmember Buckshnis have prepared a draft letter from the City Council to Governor Inslee regarding the Unocal Property. The letter proposes that the State consider retaining ownership of the property and work with the City to maintain it as open space for the environment and salmon and for future generations to enjoy. The letter is now in the hands of the Council President and will go to Mayor Nelson on May 9th for comment. They are hoping t Packet Pg. 193 the letter to the City Council for approval on May 23rd. Hopefully, all Councilmembers will sign it, as well as Mayor Nelson, and then it can be sent off. They'd like to explore this option as opposed to just a straight purchase of the property by the City from the Washington State Department of Transportation (WSDOT). A copy of the draft letter was sent to each of the Commissioners, inviting their feedback. Councilmember Teitzel said he has been working with Mayor Nelson and the Public Works Director to address the situation at the Fishing Pier Parking Lot. He met with the Diversity, Equity, Inclusion and Access Commission, who is very concerned about the Americans with Disabilities Act (ADA) issues with the two parking spaces at the Fishing Pier. They have been in communication with Mayor Nelson, as well. Commissioner Grant announced that some work was taking place there earlier in the day. Councilmember Teitzel expressed his belief that the contract between the Port and City regarding the Fishing Pier Parking Lot needs some work. He suggested the Port and City Attorneys should both review the contract, which is very outdated. For example, the contract doesn't talk about splitting parking infraction revenue with the Port. The City's Police Department issues infractions and the City collects the revenue. If the lot is co -owned, they should probably be sharing the revenue. They should also talk about the eventuality of repaving the lot entirely at some point, and the contract should address how these costs would be shared. Commissioner Preston asked how the draft letter that was drafted by Councilmembers Teitzel and Buckshnis would work with the proposed Memorandum of Understanding (MOU). Councilmember Teitzel answered that the letter would suggest that the first option would be for the State to retain ownership. If the State feels that isn't workable, the City would proceed with the MOU. EDMONDS YACHT CLUB REPORT Andor Boeck, Edmonds Yacht Club, announced that Bob Wise, President of the Recreational Boating Association of Washington (RBAW) spoke at the club's last board meeting. RBAW is an advocacy and conservancy group that protects the rights of boaters. It is important for the Port to know what legislation has impacted boater insurance. Part of Mr. Wise's task was to significantly increase RBAWs dues, so that the association can transform from a volunteer organization to also provide some key positions to take on more lobbying work. The club has representatives who are very active in RBAW, and he learned a lot from the presentation. He encouraged anyone interested to attend the next club meeting, where the presentation will be presented again. For those who can't attend, he can provide a copy of the presentation. Mr. Boeck also announced that the club would be holding an open house on Friday, May 12th. There will be a barbecue, as well as an opportunity to meet members of the club and have questions answered. He invited them to share the information with anyone they know who might be inter packet Pg. 194 joining the club. Commissioner Preston noted that the Commissioners received a flyer announcing th open house. EXECUTIVE DIRECTOR'S REPORT Mr. McChesney announced that this would be his last official meeting with the Commission as Executive Director. He thanked the Commission for their support, guidance and confidence. The past 14 years have been absolutely wonderful. He also thanked the Port staff. They have a great team, and without them, his success would be a moot point. He thanked the staff who service customers and provide administrative support. He also thanked the maintenance staff, who are as good as you can get. They do so much around the Port that goes unnoticed, and this saves the Port a lot of money by doing quality work on their own initiative. The Marina Operations Staff is a large reason for the Port's existence. The employees come to work everyday committed to making things better. COMMISSIONER'S COMMENTS AND COMMITTEE REPORTS Commissioner Johnston thanked Mr. McChesney for being the face of the Port with the public for the past 14 years. He said it has been an absolute pleasure to work with him and his excellent staff. He recalled that, a little more than 14 years ago, Mr. McChesney reached out to him, advising that he was applying for the Port of Edmonds Executive Director position and asking him to write a letter of referral He said Mr. McChesney would be missed, but he paved the way for a brighter Port and made them all better. Commissioner Harris also thanked Mr. McChesney and said she has enjoyed working with him from the beginning of her time as a Commissioner. She has appreciated his straightforwardness and willingness to listen. He's been a great mentor. Commissioner Preston commented that Mr. McChesney has taught him so much about the industry because of his experience at the Port and prior. Commissioner Orvis said that, speaking as one of the Commissioners who hired Mr. McChesney, he has never had a second thought or doubt that they hired the right guy at the right time. You had to have been here prior to Mr. McChesney's time at the Port to really appreciate the difference. He thanked him so much for what he has done. Commissioner Grant said he has only known Mr. McChesney for a little more than two years, but he has really appreciated how he kept him informed. He didn't know what to expect, as the Port of Edmonds is a lot different than other Ports he has worked with. He said he appreciates everything he has done for the Port. He has learned that Mr. McChesney was trusted and always did a good Packet Pg. 195 he was always amazed at how well he kept everyone informed. Commissioner Grant announced that a long-time Woodway Town Councilmember recently resigned a few weeks ago, and they are currently in the process of choosing a new member. This Councilmember had run the Architectural Committee for a number of years and was a valuable resource. Commissioner Grant reported that he has been tracking the Edmonds City Council, and has been working with Mr. McChesney, Councilmember Teitzel and Council President Tibbott to address the situation at the Fishing Pier Parking Lot, and they were out paving it today. Rather than tearing up the asphalt, they simply fixed the hump, as suggested by Mr. McChesney. They need to also consider whether the signage is current and legal. Commissioner Grant reported that the City has been working to update their various codes, most of which are related to taller buildings along Highway 99. A lot of the proposed code changes appear to be encroaching on what has always been a single-family community, and this is something the City Council is struggling with. Commissioner Grant pointed out that the Unocal Property is currently zoned commercial. He noted that the Waterfront Plan is still moving forward, and it is important that the Port is included in the discussions. He said he has appreciated Councilmember Teitzel's efforts to keep them informed Commissioner Grant reported that he and Commissioner Preston were present for Annie Crawley's recent cleanup dive. It rained nearly all the time, but she was able to film some of the event and both Commissioners were interviewed. He was amazed at how much they were able to bring up off the ocean floor. Commissioner Grant advised that he would attend the Washington Public Port Association (WPPA) Spring Meeting next week, as well as the WPPA Finance Meeting that is coming up shortly. Commissioner Orvis reported that 3,302 bills were introduced in the legislature and 494 passed. They are currently at Governor Inslee's desk for final signature. He specifically noted the following: • A big problem is the Blake Decision, where the Supreme Court struck down Washington's criminal a statute for possession of a controlled substance. The legislature couldn't come to agreement so Governor Inslee has called for a special 30-day session in mid -July. The hook is that, once they are brought back to special session, they can pass other legislation, as well. • HB 1746, which would have mandated broadband deployment, didn't pass. • A bill that would have required greater support for freight rail did not pass. • A _ nQ ni ffi it fnrilifiac tAY Xniac naccarl to rnnfini is tha ri arrant tau thrni inh gngd Packet Pg. 196 7.3.b • The operating budget is $69.2 billion, with $4.7 billion in new spending leaving $3 billion in reserves. The budget doesn't rely on any new taxes or fees. It covers education, family services, housing, public health, etc. • The Climate Commitment Act was allocated a lot of money for implementation. • The construction budget includes investments to state and local agencies for building infrastructure projects such as public schools, universities, parks and prisons, but it doesn't include anything transportation related. The final bill was $9 billion in total funds, of which $4.7 billion is debt limit bonds. c The remaining amounts are federal funds, Model Toxic Control Act (MTCA) accounts and Climate a Commitment Act accounts. m • Education was allocated $872 million, which isn't enough. Higher Education got $869 million in r E general obligation bonds. v • Natural resource funding will go towards water quality, salmon recovery and water supply. Recently a lot of forever chemicals were found on San Juan Island in an area that everyone thought was pristine. • Toxic cleanup was given $158 million. c� m • The Public Works Trust Fund was given $400,000. a� ;a N r • $50 million was allocated for state matching funds for federal grants for broadband. 0 • The transportation budget was $13.4 billion, and improvements include major highway projects ($5.4 CO) billion), ferries ($1.3 billion) and fish and culvert removal ($1 billion). This is the first year the State can Ln use Climate Commitment Act money that was passed in 2021, and nearly $1 billion will be used for N c projects that support conversion to zero -emissions transportation. • A lot of money has been allocated to study various hydrogen projects, but the implementation funding a� = did not pass. m • $50 million was identified for future funding for MTCA capital projects. c • The legislature decommissioned the Aviation Coordinating Commission, the group that was supposed N T) to find a new airport, and turned it into a codified work group, specifically removing the goal of v recommending one specific site for development. It appears they will start putting money in smaller airports like Paine Field and Arlington. c • HB 1085, regarding plastic pollution, was approved as modified per the WPPA's request to allow the w current standard for hard -case Styrofoam floats to continue to be used. o V_ • The derelict vessel process was streamlined somewhat. �° • Money was allocated to the Tourism and Marketing Authority, and they also provided grant writing money to the Municipal Service and Resource Center (MSRC), primarily to help rural ports look for funds. c� a • They passed a bill that said site readiness is now eligible for Community Economic Revitalization Board (CERB) funding. Now you don't have to have money to plan and develop a site before you can receive a CERB grant. • A bill authorizing public transit agencies in Washington State to produce, use, sell and distribute green electrolytic hydrogen and renewable hydrogen was approved. • The bill that would phase out natural gas is dead. Packet Pg. 197 • The bill State's did that would add advanced nuclear reactor technology to the energy strategy not pass. • The bill incentivizing gas companies to develop and require renewable energy resources also did not pass. • The bill that provided a tax incentive for research, development, production and sales of hydrogen failed to pass. • A bill was approved to make recreational vessels subject to the same 1,000-yard distance from orcas that are currently in place for commercial vessels. 0 • The Special Purpose District Governing Body vacancy bill was approved, and is effective July 1st. It requires governing bodies to advertise to get nominations from the public to fill vacant office positions. r E E • The Enhanced Voting Rights Act of Washington, which allows anyone to question an election whether 0 they live in the district or not, was approved. • The labor apprenticeship utilization bill requires projects over $2 million to achieve 15% use of -aL apprenticeships, but it doesn't take effect until 2024. Ms. Drennan said this could be a real problem for c� m the Port since they don't have the resources to monitor apprenticeship programs. N r • The Paid Family Leave Task Force is spending more money than it is taking in, so some changes were made to how pay is calculated. Ms. Drennan added that they are increasing the tax rate for the N program. ao ,n • The bill related to prevailing wages on public works projects is dead. A bill that would change the N �? Small Works Roster is also dead. 0 • The public works threshold is now $350,000. c • The road usage charge bill is dead for now, but it will likely come back. • The Capital Gains Tax was passed in 2021, and the first collections of taxes were due April 18th of c .N this year. Commissioner Harris announced that she would attend the WPPA Spring meeting next week. She said she also had a great discussion with Eric flitch, WPPA Executive Director. As she takes over as the Port's Executive Director, she will need to quickly go deep on the grant side, and he has offered to coach her. She said she met earlier in the day with the Edmonds Marsh Estuary Advocates. They have a really good website that outlines their objectives, how they envision the marsh, and the studies they would like to see done. She said she plans to meet with representatives from the City of Edmonds in an effort to bring the conversations together. They are planning an art contest (Paint the Marsh) to envision what the marsh could be. Commissioner Preston asked how much money the legislature allocated to study the impacts of dam removal. Commissioner Orvis answered that the legislature earlier allocated $5 million for a study of the impacts of dam removal. They wanted an additional $5 million for a study showing the impacts on transportation, particularly the movement of grain. Commissioner Preston reported that he recently spoke with a railroad lobbyist who was in favor of dam removal because it would increase rail packet Pg. 198 7.3.b Commissioner Preston reported that he attended the Economic Alliance of Snohomish County's (EASCs) annual meeting and forecasting event. One of the speakers was a man who invented a device to transform food waste into chicken feed. Upwards of 30% of food is wasted for a lot of different reasons. The company is located in Mukilteo. He said he also attended an Edmonds City meeting last Friday where the Economic Development Commission was asked to talk about ideas on where funding opportunities (i.e., taxes or bonds) might come from to help with the City's need for more money. One solution the Commission came up with was cutting expenses. c a as Commissioner Preston said he would also attend the WPPA Spring Meeting next week. Commissioner as Johnston advised that he would attend, as well. Commissioner Johnston announced that the process for appointing a new Commissioner to fill Commissioner Harris' position will start tomorrow, with notifications in My Edmonds News, The Everett Herald and the Port's website outlining the process for applying. The candidate must be from District 1, and a map will be attached. Applicants will be allowed two weeks to respond, and the Commission will review the applications and decide whether to proceed with or without interviews. The Commission may have a special meeting the first week of June to make a decision. The hope is that the person will be able to serve until the end of Commissioner Harris' term, which will be December 31, 2025. At that point, they may or may not run for reelection. He said he is confident they will receive some good candidates. ADJOURNMENT The Commission meeting was adjourned at 8:56 p.m. Respectfully submitted, Jay Grant Port Commission Secretary TAGS: 2023 Port of Edmonds Meeting Minutes a (https://www.portofedmonds.org/tag/2023-port-of-edmonds-meeting-minutes/), City of Edmonds Report (https://www.portofedmonds.org/tag/city-of-edmonds-report/), David Marten from Elevate's Presentation (https://www.portofedmonds.org/tag/david-marten- a from -elevates -presentation/), Edmonds Yacht Club Report (https://www.portofedmonds.org/tag/edmonds-yacht-club-report/), Mission Statement Proposal (https://www.portofedmonds.org/tag/mission-statement-proposal/), Resolution 23-3 Investment in local Govt Investment Pool (https://www.portofedmonds.org/tag/resolution-23-3-investment-in-local-govt-inve Packet Pg. 199 puuii) 7.3.b N C O E W w- 0 t O d C N E t v cC Q Packet Pg. 200 7.3.c SNOHOMISH COUNTY SNOHOMISH COUNTY 911 BOARD OF DIRECTORS 91 BOARD MEETING AGENDA June 15, 2023 at 8:30 a.m. r-1777 # Web Conference - Join Zoom Meeting https://us02web.zoom.us/j/86000466014?pwd=YWxBbE9HMIJuT2ZXMmtYVU8rSnBkUT09 Meeting ID: 860 0046 6014, Passcode: 195881 or dial +1 253 215 8782 Physical location: 1121 SE Everett Mall Way, Everett Police Department, South Precinct Please note that most Board members and staff attend the meeting remotely. However, pursuant to RCW 42.30, a physical location is also provided. 1. Call to Order A. Roll Call B. Announcements i. Assistant Chief Guptill's Retirement 2. Public Comments 3. Approval of Agenda 4. Consent Agenda A. Minutes from the May 18, 2023 Regular Board Meeting B. May 2023 Blanket Voucher & Payroll Approval Form: i. Checks 1008, and 17395 - 17539, for a total of $1,957,876.60; ii. Payroll Direct Deposit, in the amount of $1,196,513.72. C. Tower Site Lease Renewal: Authorize the Executive Director or his designee to sign the Granite Falls Tower Site lease renewal with Weyerhaeuser Timber Holdings, Inc., in a form substantially as presented, pending final legal review D. Future Facility Building Permit Funding: Approve the Executive Director to authorize expenditures for permit fees for the future facility project not to exceed $350,000 5. Executive Session - Board Briefing on Contract Negotiations 6. New Business A. South Campus Lease Extension 7. Old Business A. Capital Plan Funding Strategy 8. Reports A. Agency Report B. Future Facility Project Update Q Packet Pg. 201 7.3.c C. Radio Replacement Project (RRP) D. Police TAC E. Fire TAC 9. Committee Reports A. Finance Committee B. Personnel Committee C. Future Facility Committee D. County EESCS Committee (formerly County E911 Office) E. County ECSF Program Advisory Board 10. Good of the Order 11. Adjourn - The next meeting is scheduled for July 20, 2023 Packet Pg. 202 Stanwood Darrington Snohomish County Tomorrow A GROWTH MANAGEMENT AD VISORY COUNCIL 2 3 4 5 6 7 8 12 13 19 16 17 18 1p9 21 22 23 24 265 26 28 29 STEERING COMMITTEE MEETING Wednesday, April 26, 2023 Via Zoom 6:00 p.m. to 8:00 p.m. MEETING MINUTES Particioatina Jurisdictions/Members Tulalip Arlington Tribes Marysville Granite Falls Everett Lake Stevens Mukilteo Mill Creek Lynnwood Snohomish Edmonds Mountlake Monroe Terrace Sultan Gold Index Noodwav Brier Bothell Bar City of Arlington Mayor Barbara Tolbert City of Bothell Councilmember Ben Mahnkey Town of Darrington Mayor Dan Rankin City of Edmonds Councilmember Vivian Olson City of Gold Bar Councilmember Chuck Lie City of Granite Falls Mayor Matt Hartman City of Lynnwood Councilmember Patrick Decker City of Mill Creek Mayor Stephanie Vingal City of Monroe Mayor Gregory Thomas City of Mountlake Terrace Councilmember Bryan Wahl City of Mukilteo Councilmember Louis Harris City of Snohomish Councilmember Karen Guzak Snohomish County Council Councilmember Jared Mead Snohomish County Josh Dugan Community Representative Peter Battuello Community Representative Melissa Blankenship Community Representative Linda Hoult Other Attendees/Presenters: Snohomish County PDS David Killingstad Snohomish County PDS Taylor Twiford Snohomish County PDS Amber Piona EASC Garry Clark PSRC Ben Bakkenta 1. Call to Order: The meeting was called to order at 6:51 p.m. by Co -Chair Barbara Tolbert. 2. Introductions/Roll Call Roll call was taken (as listed above). 3. Citizen Comments No comments. 4. Approval of Meeting Minutes (3-23-23) Linda Hoult asked the minutes to be amended to reflect her attendance at the meeting. Bryan Wahl moved to approve the March 22, 2023 minutes as amended. Josh Dugan seconded, and the motion passed unanimously. 5. Update Items a. Summary of PSRC Board Actions and Activities Page 1 of 3 I 7.3.d I 0 C- a) m m E E 0 U c R fn L RS 0 m a� .y O Packet Pg. 203 7.3.d 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2g8 30 31 32 33 34 35 36 37 38 39 40 41 42 Ben Bakkenta reported on upcoming PRSC events including the April 28t" joint board session on racial equity, the May 18th webinar for elected officials on comprehensive plans, and gave a reminder for the general assembly. Mr. Bakkenta also reported on upcoming PRSC Executive Board meeting items including outcomes of the 2023 legislative session and the recommended action on the 2024/25 biannual budget and work program. The summary of PSRC Board Actions can be found here. b. EASC Update Garry Clark reported on EASC's upcoming activities including DC Fly -In effort, the board trustees meeting to receive a presentation from Sound Transit, and a EASC Coffee Chat to that will present on transportation issues. 6. Action Items a. Agenda Bill: Citizen Representative to Steering Committee 1. Introduction, Allan Giffen 2. Introduction, Andrew Stevens 7 Each applicant for Citizen Representative introduced themselves and discussed their motivations to be a member of the Steering Committee and a roll call vote was held. Immediate results indicated that Allan Giffen won by a vote of 7-6. However, upon review of the meeting recording it was shown that a vote was left off and the result was a tie, 7- 7. JURISDICTION Present Allan Giffen Andrew Stevens City of Arlington x x City of Bothell x x Town of Darrington x x City of Edmonds x x City of Gold Bar x x City of Granite Falls x x City of Lynnwood x x City of Mill Creek x x City of Monroe x x City of Mountlake Terrace x x City of Mukilteo x x City of Snohomish x x Snohomish County Council -Jared Mead x x Snohomish County x x Total 7 7 Briefings, Discussion Items a. HO-5 Report Briefing Amber Piona gave a briefing on the Housing Characteristics and Need Report (HO-5). Ms. Piona opened the presentation with the goal of the GMA Planning Goal for Housing which has changed since the last time the report was done and now includes stronger language. She then gave an overview of the HO-5 report and how it was prepared. Ms. Piona then went through each chapter of the report and all the appendices. b. Coordinator's Report David Killingstad gave the Coordinator's Report. Page 2 of 3 Packet Pg. 204 7.3.d 1 2 3 4 5 6 7 8 9 10 11 H 144 16 17 18 Mr. Killingstad informed the committee that a new SCT Manager, Ann Larson, had been hired. 8. Go -Round a. Mayor Tolbert wanted to thank Megan Moore for all her help and work. 9. Next Meeting Date Linda Hoult did note that the agenda incorrectly reflects the next meeting date as May 18th, which is the CAB meeting, and the actual meeting date is May 24, 2023. May 24, 2023; 6:00 pm - 8:00 pm. 10. Adjournment The meeting was adjourned at 7:08 p.m. by Co -Chair Barbara Tolbert All presentations given, discussions held, and actions taken at this meeting are kept on file (via recording) in PDS until six years from December 3111 of this year. Page 3 of 3 Packet Pg. 205 8.1 City Council Agenda Item Meeting Date: 06/27/2023 Approval of Council Committee Minutes Staff Lead: Council Department: City Clerk's Office Preparer: Scott Passey Background/History N/A Recommendation Approval of the most recent Council Committee Meeting minutes as part of the Consent Agenda. Narrative The Council committee meeting minutes are attached. Attachments: PSPHSP061323 FC061323 PPW061323 Packet Pg. 206 8.1.a PUBLIC SAFETY, PLANNING, HUMAN SERVICES & PERSONNEL COMMITTEE MEETING June 13, 2023 Elected Officials Present Staff Present Councilmember Vivian Olson (Chair) Jessica Neill Hoyson, HR Director Councilmember Jenna Nand Angie Feser, Parks, Rec. & Human Serv. Dir. Councilmember Will Chen Uneek Maylor, Court Administrator Shane Hawley, Police Commander Sharon Cates, City Attorney's Office Scott Passey, City Clerk 1. CALL TO ORDER The Edmonds City Council PSPHSP Committee meeting was called to order virtually and in the City Council Conference Room, 212 — 51 Avenue North, Edmonds, at 3:32 p.m. by Councilmember Olson. 2. COMMITTEE BUSINESS Amending Fingerprinting Fees - Edmonds Municipal Code Update Commander Hawley explained the fee not been increased for over 40 years. Fingerprinting for job applications, background checks, etc. is a service the police department provides to citizens and is a non -required function. The current processing fee is $5; the proposal is to increase the fee to $20. The police department also does fingerprinting for firearms purchases and concealed pistol licenses, a required function, for which the department receives a portion of the fee established by the state. Commander Hawley responded to a question whether fingerprinting could be done for free or at a reduced cost for someone who is indigent. Committee recommendation: Consent Agenda 3. Amending EMC 5.34.040-Adopting by Reference RCW 71.105 (Protection Orders) Commander Hawley explained the extreme protection risk order was adopted into the EMC by reference in 2022. As a result of sunset language in the RCW, the legislature adopted a massive 320-page bill that incorporated all protection orders, harassment orders, extreme risk protection orders, etc. and struck down all the other RCWs, thereby invalidating the EMC and making it impossible to charge any misdemeanor order violation in municipal court. This amendment to EMC 5.34.040 deletes reference to the RCWs that no longer exist and adopts by reference RCW 71.105. Committee recommendation: Consent Agenda. 2. Amending EMC 5.34.030-Removal of Repealed RCW's and Strikinq "Strangulation" as a Chargeable Offense Commander Hawley advised EMC 5.34.030 included a lot of the specific RCWs related to domestic violence protection orders, etc. This amendment deletes the RCWs from the EMC and deletes a portion of the EMC created several years ago that created a separate crime of domestic violence strangulation. The crime of strangulation counts as a felony level assault in the State of Washington, however, the burden of proof to charge in court is very high because there is often not much evidence available. In response, Edmonds and other cities passed a higher level misdemeanor assault. However, because it is a municipal code, it carries none of penalties associated with a domestic violence offense. For Packet Pg. 207 8.1.a 06/13/23 PSPHSP Committee Minutes, Page 2 example, someone convicted of this crime, is still eligible to possess a firearm, it does not go on their criminal history as a domestic violence violation, etc., it only shows as a municipal code violation. Therefore, this crime needs to remain a 4th degree domestic violence assault. Questions and discussion followed regarding changing the language so strangulation can be a separate charge to illustrate a pattern of abuse, charging strangulation as a felony offense, difficulty proving strangulation in court, and a suggestion to add "and instead relying on a charge of assault in the 411 degree as set forth in ECC 5.34.010" in the ordinance title." Councilmember Olson offered to email the suggested language to Commander Hawley. Committee recommendation: Consent Agenda with amended ordinance title. 4. Court Grant Expenditures Ms. Maylor explained the court received multiple grants for its Therapeutic Court. It was brought to the court's attention that expenditure authority for the grants had not been requested. The deadline for reporting is June 30 and receipts for reimbursement are due by July 15. The court also received a contract for legal financial obligation reimbursement from the Administrative Office of the Courts (AOC) regarding Blake affected cases. Reimbursements for Blake cases will be submitted once the State completes an online tool for submittal. This year's application for Therapeutic Court requires a letter of support from stakeholders (prosecutor, defender and city council). Questions and discussion followed regarding support for providing a letter of support due to Edmonds' very successful community court, which grants need a letter of support, information to include in the council packet, and services provided at community court. Committee recommendation: Consent Agenda as two separate items, 1) court grant expenditure authority, and 2) draft letter of support for community court from city council 5. Accounting Manager Job Description Mr. Turley explained in the current unusually tightjob market, it has been difficult to find good candidates for the deputy director position. The proposal is to have the option to hire an accounting manager if the deputy director position cannot be filled. The accounting manager job description and the salary have been updated. The request of council is to approve the job description Questions and discussion followed regarding commendation to staff for finding a creative solution, change in the pay grade, whether an accounting manager could be promoted to deputy director, whether both positions could be advertised and only one position filled, and a suggestion to add an opportunity for job progression to the accounting manager job listing. Committee recommendation: Consent Agenda 6. DSHS Development Disabilities Administration Interlocal Agreement Renewal Ms. Feser explained this is the annual renewal of interlocal agreement with DSHS as a provider of the Respite Care Facility program. The program provides short term respite care and relief for primary caregivers; an individual with a disability enrolls in a recreation program, providing the caregiver respite during that time. The City is reimbursed for the program fee by DSHS after the participant completes the program. This is the 11th year the City has participated in this program; there are typically less than 10 participants per year, but it is great program to offer. Committee recommendation: Consent Agenda. Packet Pg. 208 8.1.a 06/13/23 PSPHSP Committee Minutes, Page 3 7. Council Intern Proposal Councilmember Chen explained a South California University student who is an Edmonds resident expressed interest in interning. He suggested the council explore having a council intern program which would benefit students as well as the council. Seattle and other cities have a council intern program. Questions and discussion followed regarding benefits and potential responsibilities, concern with councilmembers who are candidates for office having an intern, concern with an intern working from a councilmember's home office, utilizing Edmonds College's intern program instead of the City establishing its own program, volunteers versus interns, difference between campaign volunteers and interns, creating an intern program for students attending various colleges, defining an educational component, ensuring separation between campaign and council work, whether an intern would work with one or all councilmembers, who would supervise/assign work to an intern, other cities with intern programs, City departments that have used interns, pros and cons of establishing an intern program, processes that would need to be established, the intern rotating between councilmembers, and engaging youth via intern opportunities. Committee recommendation: Councilmembers Chen and Olson work on details with person who expressed interest in being an intern, possibly with input from Director Neill Hoyson. Return to PSPHSP Committee for further discussion. 8. Prosecuting Attorney Services Professional Services Agreement Ms. Cates explained when the City advertised an RFP for prosecuting attorney services in 2021, one proposal was received from the current/long time prosecuting attorney, Zachor, Stock & Krepps, and the City entered into an agreement though the end of 2023. In March 2023 Zachor, Stock & Krepps notified the City of its intent to terminate the agreement effective July 8, 2023. At the time the City received notice, alternatives such as an inhouse prosecuting attorney were explored and determined to be significantly more expensive than a contracted firm. The City also discussed with Snohomish County Prosecuting Attorney's office the possibility of taking over prosecuting services, but they are unable due to insufficient staffing at this time. The City advertised an RFP in April and received one proposal from Walls Law firm. They are highly recommended, have great experience, and offered good terms. The proposal is for the Walls Law Firm to begin work on July 1, providing a week to transfer cases and information from Zachor, Stock & Krepps. Ms. Neill Hoyson commented on the limited response to the City's RFPs for prosecuting attorney services since she joined the City in 2019 and the exploration of other options. She was glad to hear the court and police department have confidence in the Walls Law Firm. Questions and discussion followed regarding a suggestion to propose a 3-year rolling average for the fee increase instead of 100% of CPI-U on July 1 of each year; discussing with Walls Law Firm normalizing future fee increases at the time of renewal; the reason Zachor, Stock & Krepps terminated the agreement; including in the narrative that the Walls Law Firm was the only respondent to the RFP, the City's process for seeking prosecuting attorney services, and the process for conflict resolution. Committee recommendation: Consent Agenda. 3. ADJOURN The meeting was adjourned at 5:25 p.m. Packet Pg. 209 8.1.b FINANCE COMMITTEE MEETING June 13, 2023 Elected Officials Present Staff Present Councilmember Will Chen (Chair) Dave Turley, Administrative Services Director Councilmember Susan Paine Angie Feser, Parks, Rec. & Human Serv. Dir. Council President Neil Tibbott (ex-officio) Scott Passey, City Clerk Councilmember Vivian Olson Todd Tatum, Comm./Culture/Econ. Dev. Dir. 1. CALL TO ORDER The Edmonds City Council Finance Committee meeting was called to order virtually and in the City Council Conference Room, 212 — 5t" Avenue North, Edmonds, at 5:31 p.m. by Councilmember Chen. 2. COMMITTEE BUSINESS Edmonds School District Proposal for Classroom Support Councilmember Paine explaining after attending ESD's April 28, 2023 meeting where ESD adopted their 2023/24 budget which included significant cuts, she asked Mr. Tatum if support would be available via grant support for arts programs or ARPA funds. School Board President Katim expressed interest in asking the City for ARPA funds for student intervention coordinators (SInC). Mr. Tatum described ARPA eligible use categories. Councilmember Paine suggested repurposing approximately $210,000 allocated to job retraining. She described rational for using ARPA funds, use of ARPA funds for other early learning support programs, and the need to approve the request now before teachers' contracts end. Board President Katims described the ESD's budget shortfall due to inadequate state funding, M declining enrollment, and the end of federal ESSER funding. SInCs are of the key positions for M supporting students' social and emotional wellbeing. Until this year, a full-time SInC was funded at CD each of the district's 33 schools; budget cuts required reducing the number of SInCs including U eliminating SInCs in the four smallest schools. She described what a SInC does, appropriateness of requesting support from Edmonds City Council for SInCs in three Edmonds schools, potential future funding sources, and benefits of the City funding the SInCs in the three Edmonds schools. E ESD Finance Director Lydia Sellie commented on the difficulty balancing the budget and past budget Q reductions. Questions and discussion followed regarding ESD's priorities, future funding sources, the state's funding model, SInC staffing in each school, justification for providing these funds to ESD to assist students, this being a short term fix for an ongoing need, and the value, importance and opportunity for the City to provide these funds. Committee recommendation: Full council with resolution and ordinance to designate use of ARPA funds to fund SInCs in three Edmonds Schools. 2. April 2023 Monthly Financial Report Mr. Turley responded to committee questions regarding a change in reporting for real property/property tax revenue, reallocating funds from the Snohomish County Local Government Investment Pool to the Washington State LGIP, investment rates, investment policies, change in the cumulative budget forecast in the Monthly Expenditure Report -General Fund, impact of carryforwards Packet Pg. 210 06/13/23 Finance Committee Minutes, Page 2 on the General Fund, building maintenance fund expenditures, job order contracts, and having staff provide a quarterly report to council. Committee recommendation: Received for Filing 3. Parks Maintenance Yard Lease Ms. Feser thanked Councilmembers Chen and Paine for visiting the parks maintenance shop today to better understand the challenges. The 2023 budget included new maintenance staff and related vehicles, equipment, materials and supplies which require storage space. The existing parks maintenance facility is 53 years old and is very small, created when the department had five employees. There is no locker room, no showers, no meeting space, the building interior and the maintenance shop are at maximum capacity, and a secure area is needed for equipment and vehicles for overnight storage. A parcel for lease was identified near Lake Ballinger (242nd St SW & 76t" Ave W) that was previously used as a landscape maintenance company's headquarters. It is fully fenced, has 3 entry points, a small building, 2 restrooms, a shower, and storage. A one year lease with 2 one-year extensions was negotiated with the property owner, $7,000/month beginning in August with no accelerator during the lease. There are funds in the existing budget for the remainder of 2023; funds for 2024 will be included in the 2024 budget. Ms. Feser described other alternatives, 1) existing City facilities being used by outside user groups such as James Wade Theater or the old Public Works facility (would take time for them to find other locations), 2) 1-2 gravel parking lots at City Park (impacts current park users and park employees), 3) an underutilized area in a park (requires numerous short-term improvements). Questions and discussion followed regarding appreciation for the tour, appreciation for staff bringing this to council even though it is below the $100,000 contractual limit, unused/underutilized space in o City buildings and/or parks, improvements required for a temporary facility in Mathay Ballinger Park, Q purchasing versus leasing the proposed site, requirement for minimal tenant improvements, comparison of SDOT's urban forestry office, percentage of the maintenance team that would move to N the leased facility, ability to hold safety training for park maintenance staff in this space, proximity to park facilities near Highway 99, timing of a new parks maintenance facility in City Park, exploring a CD long term solution, consideration of City buildings in the comprehensive plan update, repurposing u_ some City facilities, and being more efficient in the use of City buildings. as E Committee recommendation: Consent Agenda. 3. ADJOURN Q The meeting was adjourned at 6:54 p.m. Packet Pg. 211 8.1.c PARKS & PUBLIC WORKS COMMITTEE MEETING June 13, 2023 Elected Officials Present Staff Present Councilmember Dave Teitzel (Chair) Oscar Antillon, Public Works Director Councilmember Diane Buckshnis Rob English, City Engineer Council President Neil Tibbott (ex-officio) Angie Feser, Parks, Rec. & Human Serv. Dir. Councilmember Vivian Olson Shannon Burley, Deputy Parks, Rec. & Human Serv. Councilmember Susan Paine Dir. Todd Tatum, Comm./Culture/Econ. Dev. Dir. Thom Sullivan, Facilities Manager Mike De Lilla, Senior Utilities Engineer Jerry Shuster, Stormwater Engineer Scott Passey, City Clerk CALL TO ORDER The Edmonds City Council PPW Committee meeting was called to order virtually and in the City Council Conference Room, 212 — 5th Avenue North, Edmonds, at 7:30 p.m. by Councilmember Teitzel. 2. COMMITTEE BUSINESS 1. Car Show & Oktoberfest Event Agreements Ms. Burley explained the Car Show is hosted by the Chamber on Sunday, September 10 on several downtown streets. The Chamber employs one Edmonds Police officer to ensure pedestrian and vehicle safety. The agreements have been approved by City departments including South County Fire and the legal team. At Councilmember Teitzel's request, staff will add an additional requirement to both contracts, "all cords in pedestrian pathways will be covered with ADA compliant cord covers." Ms. Burley advised Oktoberfest, hosted by the Edmonds Rotary Club on Friday & Saturday, September 15-16, is free and open to public. There is an admission charge to the 21+ area. There will not be a 5k race this year. Questions and discussion followed regarding whether an admission charge for a beer garden would be allowed for events at Civic Center Playfield, encouraging free events to utilize Civic Center Playfield Park, and encouraging events who want to utilize Civic Center Playfield to use a suggested donation or sponsorship model instead of charging a fee. Committee recommendation: Consent Agenda. 2. Athletic Field Use & Reservation Policy Ms. Burley reviewed: • Last updated in 2015 • Rental fee recommendation o Evaluated multiple jurisdictions' fees ■ Edmonds fees are lowest, recommend slight increase ■ Resident fee increase $15 per hour; was $12 per hour ■ Non-resident fee increase to $20 per hour; was $16 per hour o Approx $11,350 revenue increase based on 2022 rentals ■ No Civic Park in 2022 ■ No light fees in 2022 o Light fee increase to $20 per hour Packet Pg. 212 8.1.c 06/13/23 PPW Committee Minutes, Page 2 ■ MLT $15 per hour ■ Lynnwood $25 per hour o 50% due upon allocation approval; 50% within 30 days of billing Update to match current practices o Scheduling priorities added two new non-league categories ■ City of Edmonds sponsored or co -sponsored events and programs ■ Edmonds Resident Youth Leagues ■ Edmonds Resident Adult Leagues ■ Non -Resident Youth Leagues ■ Non -Resident Adult Leagues ■ Non -Profit, non-league use (camps, clinics, events, etc.) ■ For -Profit, non-league use / commercial groups o Refund language updated Transparency & Clarity o Introduction & purpose expanded o Added sections for Definitions and Damages o Expanded insurance requirement language o General field policies in two sections ■ Field use policies ■ Rules of conduct Efficiency & Customer Service o Allocation process language revision o NEW online application o State & Federal law integration o Accuracy update to field descriptions Next Steps o Feedback and recommendation Parks & Planning Board - complete o Present to council committee June 13, 2020 o Request approval on consent June 20, 2023 o Policy in effect beginning July 1, 2023 Questions and discussion followed regarding questions staff answered via email, appreciation for the new forms, and support for adjusting and streamlining the fee schedule. Committee recommendation: Consent Agenda 3. Letter To WSDOT Regarding Unocal Property Councilmember Teitzel recalled on May 23, 2023 Councilmember Buckshnis and he presented the council a letter to the Governor asking to meet to discuss the state retaining ownership of the Unocal property. The council approved an MOU outlining the purchase path and the City retains the right of first purchase. The Edmonds Marsh project is about salmon recovery, preserving and expanding open space for birds and wildlife, carbon sequestration, etc., which are top priorities of the state and the current Governor. Following discussion on May 23, the council tabled that letter until WSDOT was notified. The packet contains a draft letter to WSDOT apprising them of the council's intent to request a meeting with the Governor to further explore the state retaining ownership. Councilmember Buckshnis advised WSDOT's long range plans include salmon recovery and the environment. The letter also invites WSDOT and grant funding agencies such as WRIA 8 Salmon Recovery Council and Puget Sound Salmon Recovery to join the meeting with the Governor. Questions and discussion followed regarding volunteers working in partnership with WSDOT to improve water flow, the letter's intent to open the door to discussion and not commit the City to anything, staff's thoughts about the letter, whether the MOU has been sent to WSDOT, and including the updated MOU in the council packet. Packet Pg. 213 8.1.c 06/13/23 PPW Committee Minutes, Page 3 Committee recommendation: Full council. 4. Boys & Girls Club New Facility Design Ms. Feser explained in February 2023, the City and Boys & Girls Club of Snohomish County signed a ground lease related to park improvements and Boys & Girls Club building owned by the City and confirming the BGC's allocation of 12,000 square feet for their facility. The agreement also requires council review and approval of the schematic plan. The next steps include a public hearing at council on June 20 and council decision on June 27. This is only review of the building design and how it aesthetically fits into the park, not a formal permit application process. Bill Toukalas, Executive Director Boys & Girls Club of Snohomish County, reviewed: • Map of Boys & Girls Club locations • Incorporated in 1946 • Today have 25 locations, multi county and multi state, represent 30,000 kids • Edmonds is third oldest club, opened in 1968, leased from City • BGC originally requested 25,000 square feet, agreed to 12,000 square feet • Looked at other possible locations to serve Edmonds youth including discussions with ECA • Decision to retain BGC in Civic Park and possibly locate teen programs on ECA campus at some point in future 40 year ground lease signed in February gives Boys & Girls Club option to renovate existing building or demolish and build a new building. o BGC made decision to demolish current building and build new state of art club • $6 million project, have secured funds from the state capital budget, Snohomish County and local private donors totaling $3.6M, confident can raise remaining funds • BGC building is former fieldhouse for Edmonds High School, over 100 years old Adam Clark, 2812 Architecture, described the study of the existing building, outdated structural integrity, virtually non-existent ADA access, small gym, and limited potential. He reviewed: • Overall site plan with the entire park • Enlarged site plan • Expanding into tennis courts • Building square footage (Main 11,760, Upper 4,758, Total 16,498) • Building elevations • Building materials • Renderings looking from southwest and northwest • Funding sources require meet LEED Silver standards • 25' height limit, need additional height for gym, will be seeking relief via CUP process • Building requires 20' setback, will be seeking variance to build at edge of sidewalk Questions and discussion followed regarding the Waterfront Center's receipt of a 3' variance due to sea level rise, height of the existing building, adding architectural detail or graphics on the north elevation, providing access to the sidewalk on the west side such as rollup doors, rooftop equipment, including rooftop solar panels, fundraising for solar panels, view blockage with increased height, creating an image showing the view from 7tn Avenue, the building's heat source, teen programs at ECA in the future, and term of the agreement and option for extension. Committee recommendation: Public hearing on June 20 and council decision on June 27. 5. Volunteer Project for Interim Emergency Realignment of Shell Creek in Yost Park Packet Pg. 214 8.1.c 06/13/23 PPW Committee Minutes, Page 4 Councilmember Teitzel reported a representative from the Washington Department of Fish & Wildlife (WDFW) met with him, Ms. Feser, Councilmember Olson and others to look at the stream and the erosion. Two old concrete weirs that were part of Edmonds old water system have filled with silt and are forcing the stream against the south bank, undercutting it and causing erosion and downstream silting and in one area, trees are at risk of falling. If the bank collapsed, it would cause downstream sedimentation, choke out the spawning beds and kill the eggs. Volunteers could manually realign the section of steam where it is undercutting the bank by digging a 50' long, 4' wide, 12" deep trench to redirect the stream to its former location to flow over the weir. This would require an emergency permit from WDFW which the WDFW representative said he would be willing to help expedite. This project would provide interim relief while a longer term plan is developed. The packet contains a draft plan. The volunteer group would draft the permit which would be sent out over Ms. Feser or other park staff's signature. WDFW will not allow work in the creek during spawning season which begins in September, so work needs to be done in July/August. The volunteer group estimates it would take two days. Councilmember Buckshnis commented erosion is at critical stage and the work needs to be done now. There are sufficient volunteers who understand what needs to be done and it is a relatively simple project. Ms. Feser explained the original intent was for discussions regarding a project in Shell Creek to begin in July. There is a great deal to discuss related to proposed project; permitting is very challenging, this is a critical area, a salmon bearing stream requires an HPA, and an emergency permit can only be issued when an emergency is declared by the governor, county or WDFW. She anticipated the permitting process would take much longer and a project would also need to go through a City permitting process. Working in a critical area will require permits with engineered drawings. She recommended this project be discussed further in July as originally planned and potentially hold a meeting with all the stakeholders to discuss best steps moving forward. She recalled the WDFW representative saying the habitat created by the erosion was good for salmon. She summarized she takes direction from the mayor, and this is beginning to sound like council directing staff to do work. Discussion followed regarding intent to ease the burden on staff by volunteers providing assistance, the legislative intent when the council set aside funds in the 2023 budget was to address erosion this year, concern if discussions did not begin until July no work would be done this year, volunteers meeting with stakeholders, staff involvement to get a ruling from WDFW whether this is an emergency, concern with volunteers setting up appointments with agencies on the City's behalf, who would prepare engineered drawings, the need for a well thought out application when meeting with WDFW, erosion being part of a natural process, concern work done by hand will not create a significant enough structure to withstand a large event, digging a channel requires cutting through tree roots, volunteers assisting with other projects, degrading or eliminating the salmon run, and how to get this done this year. Committee recommendation: Councilmembers Buckshnis and Teitzel and Council President Tibbott will discuss this further. 6. Authorization of 2024 Vehicle and Equipment Replacements Mr. Antillon explained this authorization is to get ahead of the issue of sourcing vehicles. The City has had challenges with filling orders; this would allow orders to be placed early. Questions and discussion followed regarding funds already programmed for these vehicles in the B fund; whether the equipment is needed; whether some equipment could be rented; replacing equipment that has reached its life expectancy; difficulty using the same vactor truck for sewer, water and storm; concern with approving funding authority prior to council approval of the budget; and a suggestion to request authorization via a budget amendment. Committee recommendation: Consent Agenda 7. Clean Buildings Act - Frances Anderson Center Investment Grade Audit Packet Pg. 215 8.1.c 06/13/23 PPW Committee Minutes, Page 5 Mr. Sullivan introduced Novella Randall, Washington State Department of Energy Services (DES), and Shelby Sawyers, McKinstry. He explained FAC, a Tier 1 building larger than 50,000 square feet, will be required to be compliant with the 2019 Clean Buildings Act (CBA). Compliance is required to be monitored beginning in 2026. The intent of the CBA is bringing older, non-residential buildings up to new energy indexes and divest them from the use of fossil fuel. The FAC is a perfect candidate for this because a lot of work has been done over the years, it is a naturally ventilated building with operable, double pane windows, the roof is insulated, it has updated electric and plumbing, it has been seismically retrofitted, but it has two large natural gas boilers from the 1990s that are at end of life. Ms. Sawyers reviewed: • Project goals o Aging infrastructure ■ Inefficient and inadequate HVAC serving building ■ Equipment failures and costly emergency repairs o Climate Action Plan ■ City goal to be carbon neutral by 2050 ■ Study is the first step in planning process o Clean Building Compliance ■ Legislation requiring compliance by 6/1/2028 - Frances Anderson Center is 55,000 ft2 • Study Scope o Energy Audit ■ Evaluate existing building systems and operation ■ Propose initiatives addressing: - Replacement & upgrades to aging systems - Associated energy savings - Guaranteed project cost and savings - Support planning pathway to compliance • Department of Enterprise Services (DES) o Partnering with DES to utilize state program o Provide energy project management, support customers to reduce operational costs Ms. Randall reviewed • What is the role of DES? 0 1986 RCW 39.35: Legislative Authority to DES o Prequalified providers o Project oversight o Contractual framework & coordination o Financial transparency Ms. Sawyers summarized: • Facility Updates o Address facility HVAC needs o Improved equipment efficiencies o Avoid costly emergency repairs • Community Support o Added resiliency to HVAC system o Supports needs for cooling center o Improve shelter potential • Funding resources o Align with grant and rebate opportunity o Avoid CBPS compliance issues and costs o IRA funding reimbursement Packet Pg. 216 8.1.c 06/13/23 PPW Committee Minutes, Page 6 • Next Steps: approve and begin study of facility to kick off planning process Questions and discussion followed regarding requirement for updates and year of monitoring to be completed by 2028, cost of audit assessment, and whether the cost is budgeted in 2023. Committee recommendation: Presentation to full council 8. Job Order Contraction - Fire Station #17 Apparatus Bay Ceiling Replacement Mr. Antillon advised this is to address the backlog in facilities projects. As the amount is over the mayor's limit, staff is seeing council authority to sign the JOC. He responded to a question regarding painting of the fire station apparatus bay ceiling. Committee recommendation: Consent Agenda. 9. Job Order Contracting - City Park Building Asphalt Overlay Mr. Antillon advised similar to the previous agenda item, this project will address the backlog in facilities projects. Council authority is required as the amount is over the mayor's limit. He responded to a council question regarding whether this was included in the 2023 budget. Committee recommendation: Consent Agenda. 10. Presentation of Professional Services Agreement for Design Engineering Services for Edmonds Marsh Water Quality Improvements Project Mr. English advised an RFQ was issued in April and one engineering firm, Herrera, responded. The project is to design the stormwater treatment system for 14 catch basins, 7 on each side of SR-104. Two funding sources have been secured including a $313,000 DOE grant which required a 25% local match for the catch basins on the west side, $258,000 secured through a direct legislative appropriation, and another $200,000 approved for the 2023-25 biennium for total funding of $458,000. The fee for this design contract is $134,235 which includes a $13,000 design contingency. He responded to questions regarding why the City is paying for this instead of the state, treatment that occurs in catch basins before water flows into the marsh, and informing the volunteer group. Committee recommendation: Consent Agenda. 11. Presentation of Professional Services Agreement for Design Services for Phase 4 Storm Utility Replacement/Rehab Protect Mr. English advised this is part of the stormwater maintenance program which was put on hold last year due to the vacant stormwater engineer position. Four firms responded to an RFQ in November 2021, KPG was selected based on their qualifications and experience. The scope of work is to design cured in place pipe rehabilitation for 6,400 feet of stormwater pipes that are in poor condition with construction in 2024. The fee is $144,279 which includes a $13,000 management reserve. Mr. De Lilla responded to a question regarding the cured in place process. Committee recommendation: Consent Agenda. 12. Professional Services Agreement for Phase I of the Storm and Surface Water Comprehensive Plan Update Mr. English advised the Stormwater Comprehensive Plan was last updated in 2010. Mr. Shuster explained this is the first phase of a multi -phase update to the storm and surface water comprehensive Packet Pg. 217 8.1.c 06/13/23 PPW Committee Minutes, Page 7 plan. The City's overall comprehensive plan is required to be updated by the end of 2024. The utilities element of the comprehensive plan includes the mission and goals for the City's utilities including storm and surface water. The first task is to update the goals in the existing plan and from those goals develop policies that drive the direction of the storm and surface water plan. A robust public engagement process will seek input on the current goals and policies, staff will provide input suggestions with the goal of completing it by the end of 2023. The scope of work includes addressing recurring flooding issues. Once this first phase is completed, phase 2 will include development of capital projects, programs and maintenance practices to execute the goals and policies as well as a financial analysis regarding the cost. Mr. Shuster responded to questions regarding information from Phase 1 that will be incorporated into the comprehensive plan and impact of storm and stormwater projects on stormwater rates. Committee recommendation: Consent Agenda and follow-up presentation in July regarding the project kickoff 13. Safety Action Plan Grant (Federal Safe Streets & Roads for All) Mr. English explained as part of the Bipartisan Infrastructure Law (BIL), a Safe Streets and Roads for All (SS4A) grant program has been established. SS4A requires an Safety Action Plan be in place that meets federal requirements before the City can apply for grant funds. The purpose of the plan is to develop a scope of work that is a comprehensive look at the City's safety components related to the transportation network in order to apply for capital funds or implementation strategy. The City will submit either an individual grant application or a joint application with Puget Sound Regional Council (PSRC) and other local jurisdictions by the July 10, 2023 deadline. The City's preliminary grant request will be approximately $375,000; a 20% local match is required. Award announcements are expected in fall 2023. He responded to a question regarding the requirement to have a Safety Action Plan in place so staff can apply for infrastructure funding. Committee recommendation: Received for Filing 14. Report on Construction Bids for Citywide Bicycle Improvements and Elm Way Walkway Projects Mr. English advised this project was advertised earlier this year. In the first bid in late April, issues with the contractor and bid documents required the bids be rejected and the project readvertised. The low bid at that time, provided by Kamins Construction, was $2.5 million and the engineer's estimate was $1.9 million. The first bid were rejected May 2, the project was readvertised May 5 and bids were opened May 25. Five bids were received, the low bidder was Laser Underground at $2,675,267. He reviewed: • Project Overview Map o Alignment Al: 100' Ave W from 244th SW/205th St SW to Walnut o Alignment A2: Bowdoin Way from 9m Ave to 84th Ave W o Alignment A3: 2281h St SW from 8011 Ave W to 78th Ave W o Alignment A4: Sharrows along 80th Ave W from 228th St SW to 220th St SW • Initial project scope was just bike lanes, after public outreach, pedestrian improvements added which increased scope of project at 5 locations • Citywide Bicycle Improvements o Bicycle lanes and sharrow pavement markings (-7.5 lane miles) 0 15 new ADA compliant pedestrian raps 0 3 RRFB systems ■ 911 Ave/Pine St ■ 100th Ave/224th St ■ Bowdoin Way/Pioneer Way o Pedestrian safety modifications at Packet Pg. 218 8.1.c 06/13/23 PPW Committee Minutes, Page 8 ■ Yost Park entrance ■ Woodway campus entrance o Traffic signal modifications a5 100' Ave/220th St and 100' Ave/SR104 o Pavement widening on 228' St (80th Ave to 78th Ave) Elm Way Walkway — 8th Ave to 9th Ave 0 700 feet of new curb, gutter and sidewalk (south side) 0 6 new ADA compliant pedestrian ramps o Stormwater improvements (detention system, piping and catch basins) o Pavement striping and signing Bid results Contractor Bid Results Amount Laser Underground & Earthworks $2,675,267 Kamins Construction $2,682,121 Road ConstructionNW 2,767,012 A-1 Landscaping $3,135,894 Colarcurcio Brothers $3,185,070 Eng Est $1,997,231 • Construction budget Item Citywide Bikelane Elm Way Walkway Total Contract Award $1,925,350 $749,917 $2,675,267 Construction Mgmt, Inspection & Testing 15% $288,803 $112,488 $401,291 M mt Reserve 10% $192,535 $74,992 $267,527 1 % for Arts local funds $5,452 $7498 $12,862 Total $2,412,140 $944,895 $3,357,035 • Construction Funding Funding Source Citywide Bike Lane Elm Way Walkway Total Sound Transit Grant $1,365,000 $1,380,000 REET (125/126) $496,655 $535,348 $1,074,394 Storm Utility 422 $338,384 $349,927 76th Overlay Savings (125/1260 $189,255 $189,254 2023 Overlay 125/1260 $62,000 $62,000 2023 Storm Projects 422 $43,522 $43,522 Added Funds 126 REET $299,230 $27,641 $326,871 Total $2,412,140 $944,895 $3,357,035 Questions and discussion followed regarding removal of parking on the east side, restriping 100th to narrow travel lanes and create bike lanes on both sides, concern with how this went through council and the vote, concern with bike lanes in Westgate, and adding technology to keep bicycles safe through intersection. Committee recommendation: Consent Agenda. 3. ADJOURN The meeting was adjourned at 10:12 p.m. Packet Pg. 219 8.2 City Council Agenda Item Meeting Date: 06/27/2023 Approval of Special Meeting Minutes of June 12, 2023 Staff Lead: Council Department: City Clerk's Office Preparer: Scott Passey Background/History N/A Recommendation Approval of Council Special Meeting minutes as part of the Consent Agenda. Narrative The Council Special meeting minutes are attached. Attachments: 20230612 Special Meeting - Budget Workshop Packet Pg. 220 8.2.a EDMONDS CITY COUNCIL 2024 Budget Outreach Workshop DRAFT MINUTES June 12, 2023 ELECTED OFFICIALS PRESENT Vivian Olson, Councilmember Will Chen, Councilmember Diane Buckshnis, Councilmember Susan Paine, Councilmember Jenna Nand, Councilmember 1. CALL TO ORDER The Edmonds City Council meeting was called to order at 7:00 p.m. by Councilmember Buckshnis in the Public Works and Utilities Lunchroom 7110 210t' Street SW, Edmonds. 2. INTRODUCTIONS AND BUDGET PROCESS Councilmember Buckshnis introduced the Councilmembers and gave an overview of the budget process and how the CFP/CIP ties into the budget. She explained that this year council was attempting to get as much input prior to the budget process so Council could send the Administration information as to what citizens are wanting. 3. 2024 BUDGET DISCUSSION Facilitated discussion followed on three questions: What to keep? What to Cut? How to Pay for it? Summary of citizen input: Darrol Haug • Glad that the budget process being done in this manner. • Interested in the use of ARPA money and what have we spent? • Roof leak at the library — mold is forming, doesn't think it should be pushed off to 2028, ARPA funding should be done now. • Public safety levy has been brought up twice by Dave Turley, a community meeting and budget retreat. • City added 36 people and that is a lot of salaries. James Ognowski • His process and concerns: what can the city afford to spend and forecasting? • What are the non -essential services versus the essential services? Edmonds City Council Draft Minutes June 12, 2023 Page 1 Packet Pg. 221 8.2.a • Do we need to increase property taxes or a levy to afford expenses? • What can we cut? • Have we overextended ourselves? • Can we consolidate the city footprint or do we need all our locations and infrastructure? • What are risks in future such as lawsuits or using ARPA money for recurring expenses? • The Code rewrite should be a dedicated effort as well as the completion of the comprehension plan. • ERP — how well has the Council vetted this process, budgetary aspect could have huge issue with the actual ERP • Expenses are outpacing revenues so what is the city to do as 55% of general fund is salaries and benefits. Clint Wright: • Basic needs like sidewalks and infrastructure. • Public Safety like police support. Police are needed on Hwy 99 how can we fix that? • Our watersheds we have not addressed, have been neglected for years. • Stop putting money toward the "missing link". • Accountability of the human services department. Roger Pence • Missing Link could be designed coordinated with Ebb Tide to correct seawall and add walkway. • Improve transparency and functionality with the city website. How does the PIO work with the webmaster? Kevin Fagerstrom • ARPA funds use for major projects in water and sewer. • ARPA funds and the fiber that is not being utilized. Joe Scordino • Funding in Perrinville changed by administration, need Council to give direction that is followed. • Shell Creek example of a councilmember amendment addressing weir, administration took the track of a study. • Accountability — someone needs to stipulate who is responsible. Suggests a budget report to go along with budget to specify accountability. • PIO — what does this person do? • CFP should be more of a long range look rather than every year. 4. ADJOURN With no further business, the Council meeting was adjourned at 8:25p.m. Edmonds City Council Draft Minutes June 12, 2023 Page 2 Packet Pg. 222 8.3 City Council Agenda Item Meeting Date: 06/27/2023 Approval of Special Meeting Minutes of June 14, 2023 Staff Lead: Council Department: City Clerk's Office Preparer: Scott Passey Background/History N/A Recommendation Approval of Council Special Meeting minutes as part of the Consent Agenda. Narrative The Council Special meeting minutes are attached. Attachments: E061423 Special Packet Pg. 223 8.3.a EDMONDS CITY COUNCIL SPECIAL MEETING MINUTES DRAFT MINUTES June 14, 2023 ELECTED OFFICIALS PRESENT Neil Tibbott, Council President Vivian Olson, Councilmember Will Chen, Councilmember Diane Buckshnis, Councilmember Susan Paine, Councilmember Dave Teitzel, Councilmember Jenna Nand, Councilmember PLANNING BOARD MEMBERS PRESENT Lauren Golembiewski Jeremy Mitchell Judi Gladstone, Chair Nick Maxwell PLANNING BOARD MEMBERS ABSENT Susanna Law Martini Richard Kuehn Mary Beth Tragus-Campbell, Vice Chair 1. CALL TO ORDER STAFF PRESENT Susan McLaughlin, Planning & Dev. Dir. David Levitan, Planning Manager Scott Passey, City Clerk The special Edmonds City Council meeting was called to order at 6:00 p.m. by Council President Tibbott in the Brackett Room, 121 5t' Ave N, City Hall — 3' Floor, Edmonds, and virtually. 2. ROLL CALL City Clerk Scott Passey called the roll. All elected officials were present. 3. COUNCIL BUSINESS 1. JOINT CITY COUNCIL/PLANNING BOARD DISCUSSION ON RECENT HOUSING LEGISLATION Planning & Development Director Susan McLaughlin commented it has been long time since the council and planning board engaged in a conversation around housing, a critically important element in the City. Great work has been done in past including by the Citizens Housing Commission (CHC), however, there Edmonds City Council Draft Minutes June 14, 2023 Page 1 Packet Pg. 224 8.3.a has not been a robust housing discussion since she has been with the City. She looked forward to dusting off and revisiting the CHC's material. She recognized the difficult process with the numerous housing bills considered by the legislature during the 2023 session. She looked forward to talking with the council and planning board about the housing bills that were approved and how they can be applied in ways that respect the local character and context and meet the housing needs of the community. Planning Manager David Levitan reviewed: • Meeting objectives 1. Provide general overview of recent state legislation that city will need to comply with by June 2025, most notably related to middle housing accessory dwelling units (ADUs) and design review 2. Discuss how legislation is related to the City's identified housing needs, which will be addressed through Comp Plan Update 3. Review Housing Commission recommendations on these topics 4. Discuss public engagement and how to create a policy framework that both meets state law and is supported by the Edmonds community • HB 1110: Middle Housing o Required city to allow 2 units per lot on most lots that allow for detached SFR (exemptions for critical areas) o Requires 4 units per lot within '/4 mile of BRT/Sounder or at least 1 affordable unit o May not require design standards and review process different from SFR o Limits or exempts parking requirements in certain situations o ADUs can help meet density requirements o Housing Commission Recommendations ■ Allow duplexes in RS zones via phased approach (25% every five years) ■ Explore new middle housing zone near neighborhood business districts, transit and high employment areas Questions and discussion followed regarding further guidance that will be needed from the state regarding infrastructure and critical areas; whether there was opportunity for variance/waiver from requirements for annexed areas that lack sidewalks and have narrow streets and open ditches; alternative density requirements; concern affordable housing at 80% AMI does not create affordable units for people who are low income; whether affordable housing could be defined as less than 80% AMI or income restricted; maximum area that can be exempted from increased density; when initial guidance will be provided by Commerce; when design standards can/cannot be required; whether covenants regarding single family override state legislation; definition of the alternative density requirement; how areas with a higher risk of displacement are identified; Esperance (and other urban unincorporated areas within the UGA) exempt from HB 1110; SEPA requirements; cottage housing; and the requirement to allow 6 of 9 housing types in HB 1110. HB 1337: Accessory Dwelling Units (ADUs) o Applies to incorporated cities as well as Esperance and other larger unincorporated areas o Allows two ADUs per lot in any combination of attached/detached units o Caps impact fees at 50% of SFR o Prohibits owner occupancy and frontage improvement requirements o ADUs can be sold as condo units o Must allow at least 1,000 sf units up to 24 feet in height o Housing Commission recommendation ■ Allow one attached or detached ADU per lot Edmonds City Council Draft Minutes June 14, 2023 Page 2 Packet Pg. 225 8.3.a Questions and discussion followed regarding setbacks for ADUs, applicability of the building code to ADUs/DADUs, sale of ADUs as condo units, interaction between HB 1110 and HB 1337, whether a property owner could build a duplex and an ADU, the need for additional guidance from the state, sewer capacity, whether ADUs are subject to stormwater regulations, infrastructure capacity, allowable ADU square footage, lot coverage regulations, lack of regulations regarding the size of single family houses, attached versus detached ADUs, and regulations cities are allowed to use. HB 1293: Design Review and Standards o City may only utilize clear and objective design standards o Design review process must be conducted concurrently with other permit reviews and be limited to one public meeting ■ Current 2-phase ADB public hearing process in the CG and downtown zones will need to be consolidated into a single meeting o Planning board factored this into their recommendation on CG ordinance o Housing Commission Recommendation ■ Focused on MFR design standards ■ Guidance included somewhat subjective language that would need to be excluded from clear and objective standards Questions and discussion followed regarding how the ADB feels about HB 1293, what types of projects the ADB will review, utilizing the ADB to establish clear and objective standards, minimum lot size to allow an ADU, adding regulations for single family homes that could also apply to DADUs/ADUs, evaluating single family zoning, importance of providing more housing, how additional units will affect stormwater and sewer capacity, alternatives in the HO-5 Report for affordable housing, having a vision for the community that makes it livable and equitable, requirement for local comprehensive plans to be consistent with countywide planning policies, and growth assumptions per AMI percentage. Ms. McLaughlin commented on the need to balance aesthetics with the issue of housing affordability and historic exclusion. Mr. Levitan offered to share the PowerPoint with the planning board and city council. 6. ADJOURN With no further business, the meeting was adjourned at 7:00 p.m. Edmonds City Council Draft Minutes June 14, 2023 Page 3 Packet Pg. 226 8.4 City Council Agenda Item Meeting Date: 06/27/2023 Approval of Regular Meeting Minutes of June 20, 2023 Staff Lead: Council Department: City Clerk's Office Preparer: Scott Passey Background/History N/A Recommendation Approval of Council Meeting minutes as part of the Consent Agenda. Narrative The Council meeting minutes are attached. Attachments: E062023 Packet Pg. 227 8.4.a EDMONDS CITY COUNCIL MEETING DRAFT MINUTES June 20, 2023 ELECTED OFFICIALS PRESENT Neil Tibbott, Council President Vivian Olson, Councilmember Will Chen, Councilmember Diane Buckshnis, Councilmember Susan Paine, Councilmember Dave Teitzel, Councilmember Jenna Nand, Councilmember ELECTED OFFICIALS ABSENT Mike Nelson, Mayor 1. CALL TO ORDER/FLAG SALUTE STAFF PRESENT Rod Sniffen, Assistant Police Chief Dave Turley, Administrative Services Director Angie Feser, Parks, Rec., & Human Serv. Dir. Jeff Taraday, City Attorney Sharon Cates, City Attorney's Office Scott Passey, City Clerk Jerrie Bevington, Camera Operator The Edmonds City Council meeting was called to order at 7 p.m. by Council President Tibbott in the Council Chambers, 250 5' Avenue North, Edmonds, and virtually. The meeting was opened with the flag salute. 2. LAND ACKNOWLEDGEMENT Q Councilmember Olson read the City Council Land Acknowledge Statement: "We acknowledge the original c inhabitants of this place, the Sdohobsh (Snohomish) people and their successors the Tulalip Tribes, who since time immemorial have hunted, fished, gathered, and taken care of these lands. We respect their w sovereignty, their right to self-determination, and we honor their sacred spiritual connection with the land and water." a� E z 3. ROLL CALL cvo a City Clerk Scott Passey called the roll. All elected officials were present with the exception of Mayor Nelson. 4. APPROVAL OF AGENDA Council President Pro Tern Olson requested the following changes to the agenda: Move Agenda Item 9.2, Delegation Bond Ordinance, to 9.1 Move Agenda Item 9.2, Interagency Agreement for TAC Officer at WA State Criminal Justice Training Academy, to Item 9.1 Edmonds City Council Draft Minutes June 20, 2023 Page 1 Packet Pg. 228 8.4.a • Move Consent Agenda Item 7.21, Prosecuting Attorney Services Professional Services Agreement, to Council Business Item 9.3 • Move Consent Agenda Item 7.24, Edmonds School District Proposal for Classroom Support in Three Elementary Schools, to Council Business Item 9.4 • Move Consent Agenda Item 7.11, Parks Maintenance Yard Lease, to Council Business Item 9.5 • Renumber Agenda Item 9.3, Resolution Establishing Expectations of Expenditures Related to the Implementation of the MOU, to Item 9.6 • Renumber Agenda Item 9.4, Letter to WSDOT Regarding Unocal Property, to Item 9.7 Councilmember Nand requested the addition of a Motion to Direct the City Attorney to Draft Language amending 2.05.010 and 2.05.035 as Council Business Item 9.8. Councilmember Paine requested Edmonds School District Proposal for Classroom Support in Three Elementary Schools be moved to Item 9.1 or 9.2 as the Edmonds School District Superintendent and School Board President were present. Mayor Pro Tern Tibbott suggested moving it to Council Business Item 9.2. Mayor Pro Tem Tibbott suggested removing Council Business Item 9.3, Prosecuting Attorney Services Professional Services Agreement, from the agenda. There was no consensus for that change. Mayor Pro Tern Tibbott listed the agenda items under Council Business 9.1: Delegation Bond Ordinance 9.2 Edmonds School District Proposal for Classroom Support in Three Elementary Schools 9.3: Interagency Agreement For TAC Officer at WA State Criminal Justice Training Academy 9.4: Prosecuting Attorney Services Professional Services Agreement 9.5 Parks Maintenance Yard Lease 9.6: Resolution Establishing Expectations of Expenditures Related to the Implementation of the MOU 9.7: Letter to WSDOT Regarding Unocal Property 9.8: Motion to Direct the City Attorney to Draft Language Amending 2.05.010 and 2.05.035. Councilmember Buckshnis relayed Councilmember Teitzel and she were willing to move Item 9.7, Letter to WSDOT Regarding Unocal Property, to next week. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO MOVE ITEM 9.7, LETTER TO WSDOT REGARDING UNOCAL PROPERTY, TO NEXT WEEK. N MOTION CARRIED UNANIMOUSLY. CD N co 0 COUNCIL PRESIDENT PRO TEM OLSON MOVED, SECONDED BY COUNCILMEMBER w NAND, TO APPROVE THE AGENDA AS AMENDED. E COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO REMOVE CONSENT AGENDA ITEM 7.18, AUTHORIZATION OF 2024 VEHICLE AND EQUIPMENT REPLACEMENTS, AND REQUEST THE ADMINISTRATION BRING IT BACK AS Q A 2023 BUDGET AMENDMENT WITHIN THE NEXT MONTH. MOTION CARRIED UNANIMOUSLY. MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY. 5. AUDIENCE COMMENTS Mayor Pro Tern Tibbott described the procedures for audience comments. Edmonds City Council Draft Minutes June 20, 2023 Page 2 Packet Pg. 229 8.4.a Nancy Katims, Edmonds, President of the Edmonds School Board, spoke in support of proposal from ESD requesting for funds from the City's ARPA funds to provide social and emotion support for students in three Edmonds elementary schools, Chase Lake, Seaview and Edmonds. This support would fund student intervention coordinators (SInC) in each school for the upcoming school year. SInCs help with behavior disruptions across the school, thereby allowing regular instruction to continue in classrooms. ESD and most districts in the state have been dealing with budget deficits caused by a combination of factors including inadequate state funding, lower student enrollment (which is partially what the state bases funding on) and the ending of federal and state funding designed to mitigate impacts from the pandemic. The school board and district leadership must ensure fiscal stability and a balanced budget. With a budget deficit like the current one, tough decisions had to be made. As a result the district was not able to budget for a SInC in all 33 schools as has been done in the past. One criterion was the size of the school; three of the smallest schools for which the district was unable to assign a SInC next year are located in the City of Edmonds. The district is turning to local government for support to help fill this gap. The funds are available through the City's federal ARPA funds which are explicitly designed to address impacts of the pandemic in the local community. The City originally earmarked a fund to help retrain people in the community who lost employment, but not all those funds have been used. The unused amount from that allocation is approximately what the ESD is seeking and seems to be a perfect match, using money targeting toward giving needy adults a leg up, now being used to give a leg up to the little ones to support their success in school. Over 1,000 students will benefit from this funding; the $200,000 requested is about $200 per student across the year which is about $1 per student per day in the 180 day school year. The need is there, the money is there. The last day of school in the ESD is next Monday and staff needs to plan for next year. She hoped the council would vote to support this request. There are over 1,000 kids and their families counting on the council to be their heroes. Jim Ogonowski, Edmonds, expressed surprise that there had been public comment on something that was originally on the consent agenda. Although he did not want to voice an opinion, he shared additional facts a for citizens to consider as the council considered the matter. Edmonds taxpayers account for nearly 1/3 the a Edmonds School District's (ESD) property tax revenue, yet 3 of the 4 schools identified are in Edmonds. For the last three years, the ESD received $32 million in federal relief money, the City received c approximately $11 million. ESD services about 20,000 students; Edmonds has about 40,000 residents. That equates to about $1500 per student and $250 per resident. The small school criteria used to justify the cuts o are for schools in Edmonds which will always disadvantage Edmonds. He wondered how many other small c school scenarios have been used in the past. The current request is not consistent with the approach for City a ARPA funds of not funding reoccurring costs. The ESD has known about their revenue shortfalls since at N least 2020; per their own documentation, "The district would have needed to reduce the 2021 budget if not N for the pandemic." He opined the draft ordinance is poorly written and does not reflect the federal statutes o regarding transfer of ARPA funds from one agency to another; at a minimum the council should consider w the ordinance wording. He recommended the council not vote on the ordinance until the public has more opportunity to weigh in after hearing both sides of the argument. z Carin Chase, Esperance, Edmonds School Board Member, said she could not articulate her position and a the board's position better than the School Board President Nancy Katims had. She thanked the council for their public service, recognizing everyone has a different call to public service. She reminded the council as they make this decision of the things that really impact the constituents of the district, especially the littlest ones, the children ESD serves. The goal of the ESD is to deliver the best educational opportunities for its students. Everyone has been terribly impacted by COVID and some students are just now sharing some of the difficulties they've experienced. The council has an opportunity to make a very strong and positive impact to the youngest members of the community by approving these funds to help children who are still suffering the effects of the pandemic as they move forward in their educational opportunities. She urged the council to support the proposal. Edmonds City Council Draft Minutes June 20, 2023 Page 3 Packet Pg. 230 8.4.a Dan T [no last name given], Esperance, explained he was interested in organizing a community gathering on a street, inspired by the Queen's 70 Year Jubilee in the UK where each block was given a stipend to throw a block party. He connected with so many people at the block party and when he returned, thought that would be a neat thing to do. He also saw this happening in Seattle and Portland where people can apply for a permit to host a gathering on their local street to connect with their neighbors. The plan was to do that on 93' & 234t' and contacted the special events department. The special events department emailed other departments such as police, fire, engineering, etc., and they all submitted a slew of comments which made it very difficult to organize an event. Ultimately, he decided to relegate this event to residents' own yards. From everything he has experienced, this is a great way to get people together and to interact. He recently saw a block party in Portland where the street was blocked off and he was told Portland has a permit system where residents can apply to the city and get everyone on the block to sign off on it. He suggested Edmonds consider doing that, especially with Edmonds' interest in the arts and the community. He offered to help coordinate/spearhead a proposal for what that permit system would look like. 6. RECEIVED FOR FILING 1. CLAIM FOR DAMAGES FOR FILING 2. APRIL 2023 MONTHLY FINANCIAL REPORT 3. SAFETY ACTION PLAN GRANT (FEDERAL SAFE STREETS & ROADS FOR ALL) 4. PUBLIC WORKS UPDATE 1ST QUARTER 2023 7. APPROVAL OF CONSENT AGENDA ITEMS COUNCILMEMBER PAINE MOVED, SECONDED BY COUNCIL PRESIDENT PRO TEM OLSON, TO APPROVE THE CONSENT AGENDA AS AMENDED. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: 1. APPROVAL OF SPECIAL MEETING MINUTES OF JUNE 6, 2023 2. APPROVAL OF REGULAR MEETING MINUTES OF JUNE 6, 2023 3. APPROVAL OF PAYROLL AND BENEFIT CHECKS, DIRECT DEPOSIT AND WIRE p PAYMENTS 4. APPROVAL OF CLAIM CHECKS AND WIRE PAYMENT p 5. PFD BOARD MEMBER REAPPOINTMENT APPROVAL a 6. CONFIRMATION OF DIVERSITY, EQUITY, INCLUSION & ACCESSIBILITY (DEIA) Q COMMISSION APPOINTEE REBECCA PERRAULT ` 7. AMENDING EMC 5.34.040-ADOPTING BY REFERENCE RCW 71.105 (PROTECTION c ORDERS) cm 8. AMENDING EMC 5.34.030-REMOVAL OF REPEALED RCW'S AND STRIKING w "STRANGULATION" AS A CHARGEABLE OFFENSE (RELYING ON A CHARGE OF j.: 4TH DEGREE ASSAULT INSTEAD) d 9. AMENDING FINGERPRINTING FEES-EDMONDS MUNICIPAL CODE UPDATE E 10. DSHS DEVELOPMENT DISABILITIES ADMINISTRATION INTERLOCAL AGREEMENT RENEWAL c° Q 12. CAR SHOW & OKTOBERFEST EVENT AGREEMENTS 13. ATHLETIC FIELD USE & RESERVATION POLICY 14. ACCOUNTING MANAGER JOB DESCRIPTION 15. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT FOR DESIGN ENGINEERING SERVICES FOR EDMONDS MARSH WATER QUALITY IMPROVEMENTS PROJECT 16. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT FOR DESIGN SERVICES FOR PHASE 4 STORM UTILITY REPLACEMENT/REHAB PROJECT 17. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT FOR PHASE I OF THE STORM AND SURFACE WATER COMPREHENSIVE PLAN UPDATE 19. JOB ORDER CONTRACTING - CITY PARK BUILDING ASPHALT OVERLAY Edmonds City Council Draft Minutes June 20, 2023 Page 4 Packet Pg. 231 20. JOB ORDER CONTRACTION - FIRE STATION #17 APPARATUS BAY CEILING REPLACEMENT 22. COURT GRANT EXPENDITURES 23. COUNCIL LETTER OF SUPPORT FOR COMMUNITY COURTS 25. APPROVAL OF ORDINANCE TO ALLOW DAYCARE BUSINESSES AS A PRIMARY PERMITTED USE IN THE NEIGHBORHOOD BU 26. ORDINANCE AMENDING ECC 10.01/ ECC 1.05.030 8. PUBLIC HEARINGS 1. BOYS & GIRLS CLUB NEW FACILITY DESIGN Parks, Recreation and Human Services Director Angie Feser provided an introduction for the public hearing on review of the new Boys & Girls Club (BGC) facility as it relates to Civic Center Park. The City and BGC have a ground lease agreement that was reviewed and approved by the council in February 2023 that allocated 12,000 square feet within the Civic Center Playfield for the BGC to either renovate their existing facility or build a new one. The BGC is proceeding with building a new facility. The public hearing is related to the council's review and eventual approval of the building's design, primarily on the building's esthetics and how it fits within the park and the community. There will be a separate building permit approval process. Council review and approval of the schematic design is one of the requirements and conditions of the lease agreement. Bill Toukalas, Executive Director, Boys & Girls Club of Snohomish County, referred to the ESD's comments, noting the BGC works with those same kids before and after school. The BGC has been a partner with the City since 1968 in the current building at Civic Field. He reviewed: • Map of Boys & Girls Club 25 locations o 15 in Snohomish County and 10 outside Snohomish County, primarily in partnership with tribal communities • Edmonds is third oldest club. o Building originally part of Edmonds High School when the high school was in the Edmonds C Center for the Arts building. > o Building is approximately 100 years old ° a • 12,000 square feet designated in new park for the BGC facility a 0 Considered retaining existing building, but age, condition, code requirements and instability led to a decision to demolish and rebuild c • Proposal is a 16,000 square foot building, approximately 3 times larger than the current building o Looked at other possible locations to serve Edmonds youth including discussions with ECA w o Existing club serves approximately 1800 kids, 200 of which are teens. Daily average attendance as high as 500. o Plan to eventually partner with ECA to provide space for teens. In interim will be served in the BGC facility • $6 million project, have raised approximately $3.7 million from the state capital budget, Snohomish Q County and local private donors. He was confident the remaining funds can be raised Mr. Toukalas congratulated the City on the park improvements and the ribbon cutting planned for Friday. He summarized the intent is for the BGC to be part of the park, to be open and inviting for kids and available for public use when kids are not using the building. Adam Clark, 2812 Architecture, reviewed: • Overall site plan — entire park Edmonds City Council Draft Minutes June 20, 2023 Page 5 Packet Pg. 232 8.4.a K Y v1i / I Iyz k rl 4 � =- M L' N O • Enlarged site plan No o New Boys & Girls Club facility N ■ 11,760 SF footprint with 4,733 SF upper floor (16,493 SF total) o Existing building planned for demolition due to: ■ Structural Integrity ■ Accessibility ■ Life safety ■ Limited flexibility • West elevation drawing facing 6' Street — gym, canopy, garage doors, club space o Contemporary design (Ground Face CMU, glass, wood structure) o LEED Silver standards cc ■ Minimal carbon footprint a ■ Efficient HVAC ■ Opportunity for solar c • South elevation facing park, restrooms and play structure o South facing entry for park connection c o Abundance of natural light for interior c o Biophilic design to increase occupancy connectivity to the natural environment a • East elevation M o Utility spaces on southeast for economy N 0 30' high gym (23' required to underside of structure) ca 0 o Existing building average height 33' w • North elevation facing tennis courts a� o Varied materials and surface planes E o Canopy for weather protection at street o Possible art on this side a 0 20' building setback from property line. Proposing to put building at back of sidewalk — interior area needed Edmonds City Council Draft Minutes June 20, 2023 Page 6 Packet Pg. 233 8.4.a Mayor Pro Tem Tibbott opened the public hearing. Jerry Tays, Edmonds, a former Edmonds historic preservation commission (HPC) member, relayed he was a national park ranger for 30 years and managed many historic resources. After retiring, he was hired by Washington State Parks to develop a historic preservation program for the state. Buildings in general and particularly historic buildings, have character defining features, features of the building that make it what it is. For example the golden arches, everyone knows what they represent; the broad, sweeping curves of the old Safeway markets, those are character defining features. It appears no one on the BGC team has any connection with historic preservation. There is nothing in the design that carries forward the very old, historic building, none of the character defining features are represented in the new design. It may be a very functional, good looking building, but there is nothing historic about it. As important as that building has been to the City's history for 100 years, it would seem appropriate to incorporate something in the new building representing the old building. As a last resort, he suggested a display on the grounds depicting the history of the old building, but he felt that was a cop-out. He suggested the team hire the services of a historic preservation architect to discuss incorporating something from the old building into the new building. Roger Pence, Edmonds, relayed his full support for the concept of a replacement building for the BGC of approximately this scale in this location; however, he had reservations about the design. He recommended referring the building to the Architectural Design Board (ADB) for preliminary consideration which the council is authorized to do by City ordinance. He assumed the ADB has a role in approval once building permits have been applied for, but rather than the council giving a conditional approval of this design, he recommended first referring it to the ADB. M With no further public comment, Council President Tibbott closed the public hearing. N N Mayor Pro Tern Tibbott advised this will come back to council for a decision. Tonight is to take input from w the public and for the council to ask clarifying questions and offer suggestions. c a� Councilmember Nand asked why there were no ground level windows on the north side of the building. Mr. Clark answered that is the gym; the windows are located up high so there is natural light. Councilmember Nand commented in Edmonds' downtown historic business district, she has seen new Q buildings replacing old buildings; the style people in Edmonds enjoy is the charming red brick fagade like the Carnegie Library. If the design is not completely tied to the brown brick, she suggested red brick may be a way to incorporate design elements of the previous building in the new building. Edmonds does a good job with historic, interpretive signs on buildings that have replaced historic building explaining to the public what was there before. That could be done to provide a historical acknowledgement and design elements. People are used to seeing a large red brick building here; using red brick on the new building could make it look less brutalist and more vintage looking. Mr. Clark said they hope to utilize some of existing gym floor in the new club on the first or second floor which will provide a nod to the history. Edmonds City Council Draft Minutes June 20, 2023 Page 7 Packet Pg. 234 8.4.a Council President Pro Tem Olson passed on a comment emailed by a resident regarding whether retaining the fagade would be an option and building beyond it. She recalled the fagade will not be in same plane it was currently. Mr. Clark answered that was correct. Council President Pro Tem Olson recognized that suggestion may be impractical, but there are people with comments about the historical reference. She noted in the west facing rendering does not reflect the garage doors shown in the elevation drawings. She asked if that was because the garage doors were the result of a recent suggestion. Mr. Clark agreed it was a matter of timing. Councilmember Olson recalled when that suggestion was made at a committee meeting, she loved the indoor/outdoor feel and opportunity to have the doors open. Now she wondered if the garage doors created a security issue with kids being able to run out onto the sidewalk. She asked if the doors were a good idea since the doors do not face the park and the area is not fenced. Mr. Toukalas answered in the existing building, kids are inside and outside but always supervised. If the doors were up, he assured there would be adequate staffing to ensure kids were not wandering off and/or individuals did not wander in from the street. With regard to efficiency for heating and cooling, Council President Pro Tem Olson recognized when the doors are closed, they are not as efficient as a wall. Councilmember Paine referred to the building exceeding the height limit and asked if the gym could be countersunk into the ground so height was not an issue. She recognized the height of the current building exceeds the height limit. Mr. Clark advised the building is currently 33 feet. He said countersinking the building was a possibility, but there are serious ground water issues in the park which was why it was proposed at the sidewalk level. Councilmember Paine asked if the building was on the Edmonds historic registry or has it just existed for 100 years. Mr. Toukalas said he was not aware of any historic preservation designation. It is an iconic building, but it is not on the registry. Councilmember Paine commented solar panels are essential, not so much design but as an implementation feature; they are good for the environment and the community and would set a good example. Councilmember Paine asked when the facility would be completed. Mr. Toukalas answered construction will take 10 -12 months. Construction will start after the permit process is completed. Mr. Clark anticipated o a year for the permit process as the facility has to go through design review prior to permits. Councilmember c Paine asked if the plan is to have the building at the edge of property line and how wide the sidewalk would a be. Mr. Clark answered the sidewalk will be the same width. The club portion of the building will be up to N the property line, the gym is set back about two feet and there is another cutout at one end. N co 0 Councilmember Teitzel advised he served on the HPC with Mr. Tays several years ago. The HPC looked w at designating the BGC building as historic, but it did not qualify because it has been extensively remodeled. It is not historic from that standpoint although it is treasured in the community. With regard to a question z Council President Pro Tem Olson asked via email, he asked if having the western wall of the building at cc the edge of the sidewalk would comply with the lot coverage restrictions. He recalled a certain amount of a impervious surface was allowed and asked if allowing the west wall to be at the edge of the sidewalk within the existing setback would still meet the lot coverage requirements. Ms. Feser answered it will still qualify. The northwest corner is exempt from grant requirements related to imperious surface which is why the tennis, petanque and basketball courts and the BGC are in that corner. Councilmember Buckshnis said the public could also watch the June 13 PPW Committee meeting where this was presented. As a member of the Waterfront Center's capital campaign, she noted fundraising for solar is a great idea. In the Waterfront Center's campaign, a $1000 donation allowed solar champions to purchase a panel. Many people purchased solar panels in the Waterfront Center's campaign, $1,000 is an affordable amount. She liked the idea of utilizing the old fagade, recalling discussions about putting Edmonds City Council Draft Minutes June 20, 2023 Page 8 Packet Pg. 235 8.4.a something on the north wall facing the park such as a living wall. Mr. Toukalas agreed that is a perfect place to dress up the building; the five panels could include scenes, images of the original building, etc. He suggested they leaving it to the artist to figure out the highest and best use of the panels, but they were open to doing something. Councilmember Buckshnis recalled the height of the Edmonds Waterfront Center was increased by three feet for sea level rise and suggested that could be used as an example. Councilmember Chen commented this idea has been a long time coming and it was exciting to see something happening. He agreed with Councilmembers Paine and Buckshnis that solar panels were a good idea. He said friends who visited the Waterfront Center were disappointed they missed out on the opportunity to be a solar champion. He suggested donations of $2000 to be a solar hero. He asked if the building will have community meeting space for use by other nonprofits. Mr. Toukalas answered the space will be available for use outside the BGC's hours; the ground floor is an open floor plan which could provide opportunity for groups to hold meetings and there are restrooms and a kitchen on that floor. Councilmember Chen commented there are other newly formed nonprofits that do not have the capability to raise funds that could use the space. Councilmember Chen observed the building appears to be a brick structure and asked if the design would be earthquake resistant. Mr. Clark answered the building will be required to meet all seismic regulations. The CMU block is a fagade on the outside of the structure; the main structure will be wood framing with steel cross -bracing. Mayor Pro Tem Tibbott asked about next steps for approving the design. Ms. Feser advised it is on the June 27 agenda for council approval or it could be moved to July if the council wants more time. 2. PUBLIC HEARING ON 2024 CITY BUDGET PRIORITIES Mayor Pro Tem Tibbott explained the council held a budget workshop on June 12 and plans to hold another a on June 22. This public hearing is an opportunity for the public to comment in council chambers on the 2024 budget. A feedback form is available for the public to provide input to the council on priorities. The c council will meet before the June 27 council meeting to deliberate on budget priorities which will be forwarded to the mayor in the form of a resolution. He reviewed the six priorities the council identified at o their budget retreat: c • Public safety a • Developing community spaces, parks, facilities, etc. N • Improve the way City government relates to citizens and improve transparency and functions for N citizen input w • Environment — restoring watersheds and using green technology • Improve neighborhoods which includes walkability, beautification and business development • Human services z Mayor Pro Tem Tibbott opened the public hearing. a Marjie Fields, Edmonds, thanked the council for providing opportunities for citizen input on the budget. She expressed support for the following additions to the CFP: 1) construct a diversion structure on upper Perrinville Creek to redirect excess stormwater that is destroying Perrinville Creek, 2) fix two bridges in Yost Park to enhance outdoor recreation and public access. There are state recreation grants and park maintenance grants that could fund this, and 3) modify the historic upper weir in Yost Park to preserve the historic center structure and realign the creek channel away from the eroding bluff. She was sure the council supported these environmental projects and hoped funding could be identified. Edmonds City Council Draft Minutes June 20, 2023 Page 9 Packet Pg. 236 8.4.a With no further public comment, Mayor Pro Tem Tibbott closed the public hearing. He advised there would be another opportunity to provide input at the budget workshop on Thursday, June 22 at 5 p.m. at the Meadowdale Clubhouse. Councilmember Paine asked when the survey closes. Mayor Pro Tem Tibbott answered the morning of June 27. Councilmember Paine advised there are survey QR codes available, and the survey is available on the council webpage. She encouraged the public to attend the June 22 workshop. Councilmember Buckshnis said she did not see the form on the council website. It is available via the 2024 Budget section or the public can use the QR code. Mayor Pro Tem Tibbott advised it would be available on the council webpage tomorrow. Councilmember Nand advised the next budget workshop will be on June 22. Parks & Recreation has been hard at work on a packet of budget amendments she proposed in 2023 regarding public cleanliness and beautification for the business districts outside the bowl and will be presenting more information about the incredible opportunities if council is willing to fund them to support business districts and small business communities devastated by the pandemic, globalization, inflation, global supply chain issues, etc. These are great ways to begin address the public cleanliness crisis with increased trash cans and recycling bins in areas outside the Edmonds bowl and increase aesthetic appeal and hopefully pedestrian activity in other business districts. Councilmember Chen advised in addition to the June 22 outreach event at Meadowdale Clubhouse, the Finance Committee, he and Councilmember Paine, are hosting a series of outreach events in various locations in the City. The next one is 11 a.m. to noon on Saturday, July 8 at Mathay Ballinger Park, to specifically talk about the South County Fire contract. He encourage the public to join them. Council President Pro Tem Olson advised the link to the feedback form is on the council page on the City's website via the section on the 2024 budget. 9. COUNCIL BUSINESS 1. DELEGATION BOND ORDINANCE Administrative Services Director Dave Turley explained there is an opportunity to refund bonds that have M been outstanding for 10 years. Refunding bonds is similar to refinancing a house, but refunding can only N occur at certain times and a lot more work is involved. Usually, staff and a consultant come to council to 0 talk about a project, such as the incinerator project, and get authorization to sell bonds. This is an w opportunity to refund bonds and as long as the math works out and is favorable to the City, refunding will proceed. Tonight, he was seeking authorization to begin the process which is earlier in the process than the E council is used to when selling bonds. Staff s recommendation is a motion to approve the 30-page bond ordinance included in the packet. a Scott Bauer, NW Municipal Advisors, said as the City's municipal advisor, they regularly monitor the City's outstanding debt for potential refinancing opportunities. Tonight the council has an opportunity and a bond ordinance in the packet that would authorize the refinancing of the 2013 water and sewer revenue bonds. He reviewed: • Current Bond Market o Long-term interest rates increased for much of 2022 ■ Rates decreased at the end of 2022 and through January 2023, and are below the 2022 and 2023 peaks o The charts below show an index of well -rated, 20-year, general obligation tax-exempt bonds Edmonds City Council Draft Minutes June 20, 2023 Page 10 Packet Pg. 237 8.4.a Bond Buyer 20-Bond General Obligation Index November 20,1986 to June 8, 2023 9.50 a.50 ].SO 325 • Limited Tax General Obligation Debt Bond Buyer 20-Bond General Obligation Index January 2, 2020 ro June 8, 2023 LTGD Bords Par Outsta ndine Callable Par Final Maturity Coupon Ranee Call Date LTG0 Rd 1 $ 88D,D00 $ 880,000 12/1/2011 1.75% - 2.25% 12/1/21)22 LTCdD Ref J 1,335,399 1,008,918 12/112026 1.67% 12/1/2023 LTG0202U 3,130,000 2,230,000 12/1/2039 2.1a% - 5.00% 6/1/2029 LTGO Rd 2021A 11.3MDOO 3225,000 12/l/2041 2,00% - 5.00% 12/1/2031 LTGD Rd J 2,570,000 1,480,000 12/1/2041 2.00% - 2.60% 12/1/2012 Total LTGO Bonds Debt $ 29,250,399 $ 8,823,918 o 2012 Bonds ■ Currently Callable ■ No savings due to rates on outstanding debt versus current bond market rates ■ Bonds remain callable and outstanding o 2016 Bond ■ Placed with JP Morgan ■ Callable 12/1/2023 ■ No savings expected due to rates on outstanding debt versus current bond market rates ■ Continue to monitor • Water and Sewer Revenue Debt Water and Sewer Bonds Par Outstandin¢ Callable Par Final Mat, Coupon Ranee all Date $ 13,2851000 $ 13,285,WC 12/1/2038 400% - 500% 5/112021 W5 Rev 2015 14,795,000 13,570,000 L21112040 3.00% 4.00% 5/L/2025 wS Rev 2020 13,875,000 13,875,000 L2/1/2045 2 0o% 225% 5/L/2030 Total Water 7—,7ebt��$ 41,955,000 $ 40, 730,000 LTGG 2021A(Rei 2011 WS B.,&) $ 6,070,000 $ - L2/1/2031 5M% None o 2013 Bonds ■ Callable starting on and after June 1, 2023 M N 0 N cc Cl w d E z a Edmonds City Council Draft Minutes June 20, 2023 Page 11 Packet Pg. 238 8.4.a ■ Est. savings shown on next slide o 2021A LTGO Bonds ■ Portion of the 2011 Water and Sewer Revenue Bonds refunded by the 2021A LTGO Bonds ■ Payable from utility revenues 2013 Water and Sewer Rev City of Edmonds Bond Refunding Analysis 6/12/2023 Bond - Est. Refunding Savings Refunding Summary for Water & Sewer Revenue Bonds 2013 Final Maturity 12/1/2038 Par Amount of Bonds Currently Outstanding $ 13,285,000 Callable Par Amount Outstanding $ 13,285,000 Call Date 6/1/2023 Average Interest Rate 4.57% Equal Annual Savings All Savings at End Public Market (2) Bank Placement (3) Refunding Analysis (1) 2013 2013 Issuance Date 9/1/2023 9/1/2023 Final Maturity 12/1/2038 12/1/2037 All -in TIC of Refunding Bonds 3,72% 3,70% Net Present Value Savings $ 1,071,366 $ 1,016,731 Net Present Value Savings % 8.1% 7.7% (1) Estimates (2) Interest rate comparable! City of Richland, WA Electric Utility Rev and Ref Bond less 15bps (3) Indicative bank interest rate (3.63%) o 2013 Bonds ■ The par amount of the refunding bonds can be reduced by $2,129,031 from reducing the debt service reserve fund ■ Estimated net present value savings are slightly better for a public bond issuance ■ Savings are dependent on current interest rates - Rates have been fluctuating - Rates for private placement highly dependent on bank - The bank that provided the indicative rate requires a structure that has a Weighted Average Life of < 10 years and Final Maturity < 15 years from issuance date • In this scenario, the final 2038 maturity is eliminated and annual payments from 2024-37 would be approx. $190k less than they are now Differences of Bond Issues versus Bank Loan Bond Ordinance III V Official5tatement X Bond Rating X Request for Proposals X Lots of variability in bank loans, therefore RFP advisable City issues bonds competitively, no RFP necessary Cost of Financing X Typically, lower costs for bank loans Time to Complete 6 weeks 12 weeks Interest rate risk Next Steps o Tonight: Council considers the delegation Bond Ordinance ■ Allow for the refunding within parameters (found in Exhibit A) approved by the City Council ■ Allow for refunding via public bond issuance or private placement o Proceed with preparation and distribution of Bank RFP ■ Initiate a bank Request for Financing Proposal and distribute to multiple banks M N O N 0 O W r C d E z t� a Edmonds City Council Draft Minutes June 20, 2023 Page 12 Packet Pg. 239 8.4.a ■ Review responses and select a bank providing the best proposal, only if savings meet or exceed Designated Representative's (Finance Director) target - Bond must exceed target in Bond Ordinance o Close 2023 Bond, release funds from Debt Service Reserve Fund, and pay off 2013 Bonds Councilmember Buckshnis asked if the City had ever done a bank loan related to refunding. Mr. Bauer answered yes, the 2016 is a bond that was privately placed. Councilmember Nand asked if maneuvering the funds in this way would have positive impact on the City's credit rating. Mr. Bauer answered reducing debt has a positive impact, but he doubted it would be enough to shift the bond rating. Councilmember Chen observed there are potential savings, but there are also associated costs. If the bonds are refinanced, it requires retiring the 2013 existing bond and going through the process of acquiring new bonds. He asked the approximate cost including Mr. Bauer's fees. Mr. Bauer relayed the costs are factored into the savings. For the public issuance, he assumed all costs would be about 1.5% or $150,000; for the private placement, he assumed costs of about $60,000. Bank placements are highly dependent on whether the bank charges a fee or whether they have bank counsel. He will compare interest rates and costs in each proposal to find the lowest cost. Councilmember Chen observed the analysis shows an average interest rate of 4.57%. The April monthly financial report shows there is $38 million in the Snohomish County investment pool earning 2.49%. He summarized the City has money earning 2.5% while bonds are financed at 4.57%. He asked why the funds in the investment pool were not used to retire the bond. Mr. Turley explained these are revenue bonds, so annual payments on the bonds are paid from sewer revenue, not the General Fund. What Councilmember Chen suggested would require imposing a surcharge on sewer customers to develop a balloon payment of $10 million to pay off the bonds in one year, or somehow divert $10 million out of the General Fund to pay the bonds off on behalf of the sewer fund which he was unsure was legal, but would not be wise. The Finance Committee may want to discuss the investment policy, but he did not envision a way to immediately pay off $10 million in the sewer revenue bonds in a way that would make financial sense for City. Councilmember Chen asked City Attorney Jeff Taraday if there was legal issue with paying this off. Mr. La Taraday answered he was unsure there was a law that prohibits cities from using General Fund dollars to a subsidize their utilities, but it is almost never done because most would consider it fiscally imprudent. The N General Fund is highly constrained and can only be grown by 1 % a year with property taxes so those dollars N need to be protected because it is very hard to replace them. On the other hand, utility funds are much easier o to replace; rates can be raised in an almost unlimited way if needed. It was probably not a legal issue to use w General Fund to subsidize utilities, but most people would not consider it to be fiscally prudent due to limitations on the General Fund. E z Mr. Turley explained the bonds were originally sold to install sewer pipes in the ground and the cost is a charged to sewer customers because they are paying for a product they use daily. The City is not allowed to use utility funds to benefit the General Fund. The General Fund can be used to bail out the utility funds, but the utilities actually support themselves very well so that was not an avenue that would generally be pursued. Mr. Taraday commented because it can't be done the other way around, it is almost never done the other way; it is illegal for the utilities to subsidize the General Fund and because of that, it is rare to see the General Fund subsidizing utilities. COUNCILMEMBER PAINE MOVED, SECONDED BY COUNCIL PRESIDENT PRO TEM OLSON, TO APPROVE THE DELEGATION BOND ORDINANCE THAT'S INCLUDED IN TONIGHT'S PACKET. Edmonds City Council Draft Minutes June 20, 2023 Page 13 Packet Pg. 240 8.4.a Councilmember Teitzel referred to next steps, specifically, allow for refunding via public bond issuance or private placement, commenting in general the City is pretty risk intolerant, and he was concern with inherent risks with private placement. He asked Mr. Bauer to address the risks with private placement. Mr. Bauer answered he did not see a lot of risk in doing one or the other. They have worked with banks who are quite well versed in municipal lending. They issue an RFP, get responses from the banks and select the bank that provides the best terms. He did not see a great risk with private placement versus a public bond issuance. Councilmember Teitzel asked if the bank fails as has occurred recently, was the bank backed by federal funding and would the City be protected. Mr. Bauer answered the bank would be lending the City money, the City does not have not money on deposit with bank. To the extent the bank failed, he assumed the loan would transfer to the receiving bank and the City would continue making payments to the receiving bank. Councilmember Buckshnis commented the latest financial statement identifies a bond reserve of $847,000 in Fund 424. She asked if Mr. Bauer was referencing a different reserve fund that has a $2,193,031 balance. Mr. Bauer said the fund he is referring to should have close to $3.2 million in it, $2.1 million of which would be removed and approximately $1.1 would remain. He was unsure if Councilmember Buckshnis was looking at the amount used to make debt service payments. Councilmember Buckshnis inquired about Fund 424, the bond reserve fund. Mr. Turley said he did not have that information in front of him, but envisioned Councilmember Buckshnis and Mr. Bauer were talking about two different things. The City is required to make payments out of a specific fund so money is transferred into bond reserve fund and transferred out to make the bond payment. He envisioned that was a different fund than the one Mr. Bauer was referencing. Mr. Bauer agreed there were two separate funds, one for bond payments and a reserve that does nothing other than make a payment if there is ever a shortfall in the bond fund, which there never has been. Councilmember Buckshnis reiterated she was looking at Fund 424 which contains different numbers. She asked if staff was seeking a decision from council about using the bond reserve funds. Mr. Turley answered there was no decision requested related to the bond reserve fund; that was just information Mr. Bauer provided as background to show the City is stable and has the funds to do it. MOTION CARRIED UNANIMOUSLY. 2. EDMONDS SCHOOL DISTRICT PROPOSAL FOR CLASSROOM SUPPORT IN THREE ELEMENTARY SCHOOLS M Councilmember Paine commented the council has received a lot of correspondence about this topic from N community members as well as from ESD volunteers. ESD School Board President Katims and Finance c Director Lydia Sellie have also provided information regarding the ESD's finances. The council packet w includes Q&A requested during the Finance Committee and ESD's proposal to use the City's ARPA funds c to fund student intervention coordinators (SInC) in three of the smallest elementary schools in the ESD E located in Edmonds. The fourth school in ESD where the SInC was cut is located in Brier and a funding option has been identified for that school. There are approximately 1,000 students in the three schools, Seaview Elementary, Edmonds Elementary and Chase Lake Elementary. The proposal is to fund 2.0 FTE, Q 1 FTE and two 0.5 FTEs. She was happy to answer questions related to the ARPA and/or address questions regarding the necessity. Councilmember Paine continued, these are one time funds to provide stability for the coming year and allow the ESD to work with the legislature on future funding. This will benefit families and future taxpayers. Early education is the strongest predictor of economic and academic success. Edmonds has a high level of academic attainment and this is important for future success and important for student to have the best launch possible. The ARPA funds were intended to address impacts of the pandemic and this is part of that recovery. This a chance for the council to provide the support that students and families need because the Edmonds City Council Draft Minutes June 20, 2023 Page 14 Packet Pg. 241 8.4.a littlest students were not taught by teachers, they were taught by parents during pandemic. She was proud to support this proposal. Councilmember Nand said she comes from a union household and both her parents were public high school teachers for 45 years, teaching in some of the toughest schools in the Seattle School District because they were teachers of color in math and sciences. She was unsure if any other councilmembers have direct teaching experience; she taught as an adjunct at Seattle University's business school, teaching 22-year olds. She learned the importance of classroom control when she had to take three crying 22-year olds into the hallway due to bullying accusations. When she was a college student, that was not a toolkit a professor needed. The new generation of children growing up with phones, social media, and incredible pressures are experiencing emotional processing and behavioral issues that previous generations never experienced. She he was fascinated when this come before council because she did not know what a SInC was. She talked to her mom who explained if a student was having a behavioral disruption, she would take them outside and ask what's wrong. Often the high school student would start sobbing and tell her about a problem at home that was driving their disruption. Councilmember Nand continued, it's important to remember when discussing politics that behind politics are people. The people affected by this $210,000 are at -risk youth, children who through no fault of their own were not born into the "best families" and are not viewed as college bound. That playing field needs to be equalized and the best place to do it is in elementary school. If Edmonds retained these ARPA funds, human services does not have the penetration into the community and low income households to provide direct services to children. She viewed this as a block grant of ARPA funds to people who have contact with children who are falling through the cracks. This has an incredible capacity to lift students out of poverty through education and divert children from mental and physical health detriments such as juvenile drug use, identify children who may be experiencing abuse at home that is driving behavioral disruptions and stop them from becoming the non -college bound kids, the kids that when she was a student, the school had given up on and moved them through to focus on the bright future leaders. She was one of the bright future leaders because she came from the right type of household, a paradigm that should be destroyed in public education. Councilmember Nand hoped as councilmembers considered this, they looked at this early intervention for o "problem students" that can lead to students who instead of becoming a detriment to the taxpayers, become c net tax contributors rather than consumers they cannot function in adult society. When the council looks at a Congress' will in blocking out the ARPA funds to address the economic and health impacts of the pandemic, N what better use is there for the money than assisting low income families and their children. She encouraged N councilmembers to vote in support of this request. o w COUNCILMEMBER CHEN MOVED, SECONDED BY COUNCILMEMBER PAINE, TO APPROVE THE EDMONDS SCHOOL DISTRICT'S PROPOSAL FOR CLASSROOM SUPPORT E IN THREE ELEMENTARY SCHOOLS. Councilmember Chen said he wants to be practical, his wife is a high school teacher and they have regular Q discussions about budget cuts and student needs. The $210,000 will not fix the problem; this is a societal issue that ESD needs to prioritize. He understood classroom size was important, but as important as SInCs are, ESD needs to come up with a long term solution. This 2.0 FTE is just band -aid for one year. Even though the council's allocation of funds for retraining was not being well utilized in the short term, the need is still there. He did not want councilmembers or the public to think there wasn't a need for reeducating or job training. If people are worried about kids becoming a liability when they grow up, there is a current liability with adults that needs to be fixed. There are various reason the job retaining fund has not been utilized to its full potential, primarily because the City does not have the human resources to implement the fund for its intended use. The need is still there and he did not want to eliminate funds for job training. He Edmonds City Council Draft Minutes June 20, 2023 Page 15 Packet Pg. 242 8.4.a expressed appreciation for the data provided by Mr. Ogonowski. He summarized kids need help and the City is in a position to help and at this moment, it is the right thing to do. Councilmember Teitzel said he has thought about this over the past two weeks, and was convinced the school board and ESD presented a solid case that there is a need, that it needs to be addressed this year and that it is directly related to COVID. He was fully supportive of the proposal and wanted the City to help. He was prepared tonight to suggest an alternative proposal, a short term bridge loan at zero interest for one year to cover the amount to allow the SInC positions to continue; however, in discussions with Board President Katims, he was informed ESD would not accept a short term bridge loan under any circumstances because from their standpoint it is poor fiscal policy. Therefore he will not present that proposal even though he still thinks it has merit. He expressed support for the motion. Council President Pro Tem Olson explained the ARPA funds were given to the City specifically for pandemic effects. ARPA funds explicitly for pandemic effects were also given to ESD. The City has many options for spending ARPA funds and has made a lot of good decisions already. She believed this was another good way to spend ARPA funds. She cautioned against getting hung up on the divide between the City and School District, agreeing it was not the City's purview to finance school operations. However, the City has more flexibility with these ARPA funds. She has chosen not to get hung up on the separate between the City and School District and to instead think about this as a way to reach children via the schools where they spend their days and to provide a staff member to assist them. The SInC seems to be an integral and important job that needs to be funded. She had confidence in the superintendent and the school board; the ESD has a lot of work to do with regard to budgeting as well as school performance. School performance is on the radar of a lot of residents, with some feeling like the district is falling behind other cities. She thanked ESD admin and staff and empathized with the challenges they and the teachers and counselors on the front line have faced in recent years. She relayed her support for the motion. Councilmember Buckshnis thanked all the parents and teachers who wrote in, commenting Ms. Hernandez must be a very special person, the comments from her second graders tugged at her heart. The ARPA funds are a windfall and qualify for this use. She recognized ESD had many challenging years ahead and needs to retain their staff. She summarized she had never received this many emails for any other projects in the 13 years she has been on council. Mayor Pro Tem Tibbott restated the motion: g TO APPROVE AN ORDINANCE TO ALLOW A REDUCTION IN THE ALLOCATION OF ARPA N FUNDS IN THE AMOUNT OF $210,000 AND ALLOW THAT TO PROVIDE ONE-TIME FUNDS N TO THE EDMONDS SCHOOL DISTRICT FOR CLASSROOM SUPPORT. c w MOTION CARRIED UNANIMOUSLY. d Mr. Taraday asked if staff should interpret that to be a motion on the ordinance or did the council want to separately vote on the ordinance. The way the motion was originally phrased was to approve the ESD proposal with no reference to the ordinance. Mayor Pro Tem Tibbott said when he restated the motion, it Q was to approve the ordinance. 3. INTERAGENCY AGREEMENT FOR TAC OFFICER AT WA STATE CRIMINAL JUSTICE TRAINING ACADEMY Assistant Police Chief Rod Sniffen explained this interagency agreement between the City and the Washington State is related to an Edmonds Police Department staff member becoming a full-time instructor at the Washington State Criminal Justice Training Academy. The State Training Commission refunds the City for the cost of the officers full pay and benefit. There is often a 7-8 month wait to get new hires into law enforcement training. For agencies that offer a staff to become an instructor at the academy, that wait Edmonds City Council Draft Minutes June 20, 2023 Page 16 Packet Pg. 243 8.4.a is shortened and students receive priority placement. The department is challenged with getting officers hired and trained and although taking a staff member away will hurt in the short term, in the long term it will provide big benefits. COUNCILMEMBER PAINE MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO APPROVE THE INTERLOCAL AGREEMENT WITH THE CRIMINAL JUSTICE TRAINING CENTER. Councilmember Paine expressed appreciation for the police department putting this together so officers can get into the criminal justice training academy earlier. Council President Pro Tem Olson relayed an earlier conversation she had with Assistant Chief Sniffen that the agreement does not reference the benefit of prioritizing Edmonds personnel going through training. However, it is in writing as part of the advertisement for the job. She asked for confirmation that the City could walk away from the agreement if those terms were not fulfilled. City Attorney Jeff Taraday advised the agreement can be terminated without cause at any time by either party with 30 days' notice. Assuming the City received that benefit, Council President Pro Tem Olson said it was a great deal. The City is not paying the officer's salary while he is an instructor and the City receives prioritization for its recruits. She concluded this was a winning proposal and she would support it. Councilmember Chen observed Officer Bradley Hair would become a full-time trainer. He asked if Officer Hair would still be an Edmonds officer or an employee of the Criminal Justice Training Commission. Assistant Chief Sniffen answered he will remain a full employee of the City of Edmonds on contract for services with the Criminal Justice Training Commission. Councilmember Chen commented the downside is the Edmonds' police force is reduced by one officer. Assistant Chief Sniffen agreed, commenting hopefully it would be temporary. Adjustments have been made to cover his absence, the same as when officers are out for other reasons. Councilmember Chen asked why the Criminal Justice Training Commission did not hire their own trainers instead of going this route. Assistant Chief Sniffen said this has been the model for many years. There is a bit of credibility when hiring people who are currently in the field and doing the job for a number of years. There are strict criteria to quality to be an instructor at the academy. Councilmember Chen said his only reservation is reducing the work force that is already short. M Councilmember Nand said she will vote in favor of the interagency agreement. It's wonderful that an N Edmonds officer will be an instructor at the Criminal Justice Training Academy. According to Chief c Bennett, Edmonds is known for being a very ethnically and gender diverse police force. As more people w from historically underrepresented populations attend the police academy and the way criminal justice is c being implemented in the community begins to move toward community policing, the influence of the E Edmonds Police Department can be a great asset. Councilmember Teitzel observed there was a plan developed that council approved to allocate additional Q officers to Highway 99 where a spike in crime has occurred. He asked if the assignment of Officer Hair as a TAC officer would affect the assignment of officers with a Highway 99 focus. Assistant Chief Sniffen answered the current challenge is having enough staff to fill positions council approved last year. As candidates are hired, they are not able to go through training for many months. Moving Officer Hair to the academy results in a temporary reduction, but in return the City will receive faster turnaround to fill those positions and make that program a reality. MOTION CARRIED (6-1), COUNCILMEMBER CHEN VOTING NO. Mayor Pro Tem Tibbott declared a brief recess. Edmonds City Council Draft Minutes June 20, 2023 Page 17 Packet Pg. 244 8.4.a 4. PROSECUTING ATTORNEY SERVICES PROFESSIONAL SERVICES AGREEMENT Sharon Cates, City Attorney's Office, explained in March 2023, the City received a letter from the current prosecutor, Zachor, Stock & Krepps, advising of their intent to terminate the contract with 120 days' notice. Their last day is July 8; they have offered to work with the incoming firm to transition services. At that time the City looked into going inhouse or contracting with Snohomish County. Research regarding an in-house prosecutor found it would be significant more expensive than contracting. At City staff s request, Lighthouse reached out to Snohomish County regarding prosecuting attorney services, but they were unable to help due to difficulty filling positions. An RFP for a prosecuting attorney services firm was issued at the end of April with responses due by the end of May. One response was received from the Walls Law Firm; the terms of their proposal were very similar to the Zachor Stocks and Krepps contract. Staff entered into negotiations for a contract and the contract was presented to council committee last week. The contract stated yearly increases to the flat fee would be based on 100% of CPI-U; council committee asked Lighthouse to inquire about changing that to a rolling three year average of the CPI-U. The Walls Law Firm was amenable to that change and it was included in the contract in tonight's packet. Ms. Cates continued, Walls Law Firm's proposal showed they have decades of experience doing prosecution work. As Lighthouse researched potential prosecuting firms, Walls Law Firm was recommend as a very good prosecuting firm. HR Director Neill Hoyson reached out to the Police Department and they were very pleased with this firm as the potential new prosecuting attorney firm. Staff recommends council approve the contract as amended. Council President Pro Tem Olson thanked staff for the change regarding the annual increase. She was one of the committee members who supported placing this contract on consent, but due to new information since the committee meeting, she requested it be placed on the agenda for discussion. The Walls Law Firm was the sole respondent and staff verified their proposal was market price and similar to what the City paid the former provider. The Walls Law Firm was a responsive and responsible bidder vetted as Ms. Cates shared. She asked if it was correct that this was a one year contract with options to renew. Ms. Cates advised it was a three year contract. Council President Pro Tem Olson said she wanted to ask a question related to ECC 2.05, recalling c Councilmember Nand asked to have an amendment to the code on tonight's agenda related to the process a for selecting a prosecutor. She asked if council approving this contract tonight would be a violation of ECC N 2.05, the code related to the city attorney and prosecutor. Mr. Taraday answered no, explaining there is no N requirement to do an RFP prior to the council approving a contract for legal services. If the council had c concerns about how this RFP was initiated, the fact that it even happened at all was something that did not w have to happen. The council could just become aware of the Walls Law Firm and decided to enter into a contract with them. An RFP is not a legal prerequisite to entering into a contract with a law firm, so there E would be no violation of code by the council entering into this contract. Mr. Taraday reminded that he informed the city council on April 25 that this RFP was about to be published a and the circumstances under which it would be published. While ECC 2.05 does not expressly state this and the council may want to have it stated differently, the intent from his perspective was whenever the council wants to test the market or look at other firms, it can but it is never obligated to do so. In this case the City had already received notice of termination from the prosecutor; there was no other viable option than doing a RFP. If the council had wanted to take over the RFP process in April and theoretically tinker with the questions, it likely would not have resulted in another candidate responding to the RFP. The City received one response and probably would have only received one response regardless of whether it was a council -initiated RFP or a staff -initiated RFP. Going forward, there is potentially an opportunity to make the code more clear; for example, if the council wants all RFPs to come to council before they are published. Edmonds City Council Draft Minutes June 20, 2023 Page 18 Packet Pg. 245 Council President Pro Tem Olson stated for the record that that explanation was the reason she removed the contract from consent and her previous position as member of the committee that she was comfortable with the outcome of the RFP process still stands. Councilmember Paine recalled a 1%-2 years ago, the contract with Zachor, Stock & Krepps was for one year rather than three years and they were informed the City planned to do an RFP; Zachor, Stock & Krepps was the only respondent to that RFP. Ms. Cates explained the City has done three RFPs for prosecuting attorney services, in 2019, 2021 and 2023. In 2021 the City received one response from Zachor, Stock & Krepps and the City entered into a contract with them. She agreed at one point the agreement with Zachor, Stock & Krepps was extended for a year and they were informed the City would be doing an RFP. She recalled that was the 2021 RFP. Councilmember Paine said in reviewing the contract language and scope, she did not see where the prosecuting firm would provide an annual report to the city council or data collection. There have been specific data collection requests for the prosecutor's office and other law enforcement agencies including the courts related to DWLS 3 and relicensing. She asked if the scope of work could be amended to include meaningful data collection and an annual report to city council. Ms. Cates answered the contract could be amended to include those although she did not think an annual report needed to be in the contract, anticipating the prosecutor would be happy to provide that. Data collection has not been addressed with the Walls Law Firm and would need to be discussed with them. Councilmember Paine requested staff inquire about data collection. Councilmember Buckshnis thanked Council President Pro Tem Olson for the explanation regarding why this was pulled from the consent. She expressed concern the council was not brought into this at all, including not seeing the termination letter. She learned about it from a Herald reporter. It is a disservice that the administration chose not to include the council at the beginning. The council did receive a letter from Mr. Taraday which she appreciated and shared with the reporter. The code clearly states the council should have been involved. It is unfortunate that the administration somehow made this firm unhappy so they chose to terminate the contract for the reasons stated in the news article. She found that unfortunate since they have been the City's prosecuting attorney for 20 years and she not have problem with them. She hoped there would be better communication in the future because in her interpretation what happened was not legal. COUNCILMEMBER NAND MOVED, SECONDED BY COUNCIL PRESIDENT PRO TEM N OLSON, TO APPROVE THE CONTRACT WITH WALLS LAW FIRM AS WRITTEN. N co 0 Councilmember Nand advised Council President Pro Tem Olson and she vetted this contract with the city w attorney in the PSPHSP Committee and as Mr. Taraday stated, there was only one respondent to the RFP. She favored the council moving forward in an expeditious fashion so the City can start building a E relationship with the new city prosecutor, because in two weeks, the City will not have a city prosecutor. Anything related to the scope of work can be worked out. She emphasized the need to get the contract signed to ensure the City has coverage. Q At Councilmember Teitzel's request, Mr. Taraday read the first two sentences of 2.05.010 for the record: "Legal counsel services for the City of Edmonds, Snohomish County, Washington, pursuant to the provisions of RCW 35A.12.020 may be provided through professional services contract. Any such professional services contract shall be let on such basis as a majority of the Edmonds City Council shall determine." Councilmember Teitzel said that language suggests council should take an active role in the process, but Mr. Taraday's earlier explanation to Council President Pro Tem Olson was council can decide to take an active role or allow the administration to run with it and council be a bystander. However, he did not see that as the spirit or intent of the language in 2.05.010. Edmonds City Council Draft Minutes June 20, 2023 Page 19 Packet Pg. 246 8.4.a Councilmember Teitzel asked if Mr. Taraday would agree the council should take an active role in the process. Mr. Taraday answered he agreed the City cannot enter into a contract for prosecution services or city attorney services without council approval; that is very clear in the code. However, the code also states, "The city council may from time to time, with or without cause, on such basis as a majority of the Edmonds City Council shall determine, undertake a request for proposal process for city attorney and/or city prosecutor services provided that nothing in this code or other city policy shall be construed as requiring the city council to undertake a request for proposal process prior to renewing or approving a contract for legal services." Mr. Taraday continued, that was the portion of the code he was speaking to previously when he said there is nothing that requires an RFP process prior to approving this contract. He understood how someone could read that and think only the council can issue an RFP, but it does not expressly prohibit the administration from doing an RFP. That may be something the council wants to change. He recalled at the time the language was drafted, his thought was the council would decide when and if they wanted to do an RFP. That is the most important part of the language. In this case, there was no decision to make; the prosecuting attorney firm terminated their contract with the City and a replacement needed to be found. He reiterated the council was notified before the RFP was published; it is not like the council was kept in the dark about the fact there would be an RFP. Councilmember Teitzel concluded the root of the issue is communication between the administration and council and more work may be required to clarify how that communication and approval process works. Councilmember Paine asked if would be possible for Ms. Cates to inquire with the Walls Law Firm about data collection and get back to council after the contract is approved. She agreed with Councilmember Nand, the City needs to have prosecution services. Ms. Cates said in her communications Walls Law Firm, they have been very prompt to respond and very willing to do whatever the City needs. It was her impression they would be happy to do what the council's requested and she would be happy to reach out to them. Council President Pro Tern Olson commented the domestic violence coordinator position was mentioned in the letter as a reason the other firm did not want to continue. She asked that staff advise the council of plans to fill that position after a year of it being vacant. MOTION CARRIED (6-0-1), COUNCILMEMBER BUCKSHNIS ABSTAINING. 5. PARKS MAINTENANCE YARD LEASE N 0 N Parks, Recreation & Human Services Angie Feser explained in 2023 the council approved budget c expenditures to increase FTEs, equipment and supplies for the parks maintenance division. As a result, the w existing parks maintenance shop is not capable of housing the equipment, vehicles and supplies in a secure environment and the physical building they work out of is very challenging. There is no locker room, no E showers, a very small breakroom, 14 employees share on computer, and their gathering area is a garage where all the small equipment is worked on at the same time. Once staff learned the council approved the Q budget allocation, research begin regarding expanding the parks maintenance building. Several options were considered including an underutilized area of an existing park, a flat, open field right off the road. It was discovered through the permitting process that significant improvements to the property would be required including paving and 20-foot landscape buffers installed on the edge of the property which would all be removed when the property was no longer needed in a couple year so that site was deemed infeasible. Ms. Feser continued, another option would be to utilize existing City -owned facilities such as the old public works building or the James Wade Theater. Those buildings currently house a number of community groups and it would require time and effort to help them relocate as well as reconfigure the facilities and do tenant improvements. Another alternative is to use the City Park parking lots by cordoning them off with leased fencing as well as a job shack to provide shelter which would eliminate parking for park users, requiring Edmonds City Council Draft Minutes June 20, 2023 Page 20 Packet Pg. 247 8.4.a them to park on side streets and walk into the park. The property mentioned in the lease is approximately %2 acre, with a 1200 square foot building, previously used by a landscape company, with three entrances/exits, and completely fenced. The building is suitable for parks maintenance and includes shelving, space for breaks and meetings and would require very few tenant improvements. The property is located in southeast Edmonds, close to improvements that will be maintained on Highway 99, Mathay Ballinger and the Interurban Trail. The proposed property lease is for one year, renewable for two 1 year terms, $7,000/month for the entire duration of the lease. COUNCILMEMBER NAND MOVED, SECONDED BY COUNCILMEMBER PAINE, TO APPROVE THE LEASE. Councilmember Nand disclosed her parents live across the street from the property; she has seen many interesting tenants throughout the years. With the push to relocate some City services to southeast Edmonds due to it being a densely populated area and traditionally underserved, this is a great way to show the City is shifting awareness away from locating services in the bowl. It is a great property for park maintenance and was most recently used by U-Haul. Council President Pro Tem Olson asked staff to share why they felt the $7,000/month lease for a '/2 acre property with a 1200 square foot building was market price. Ms. Feser said after 5 p.m. today she provided council with a spreadsheet of comparable facilities prepared by the real estate consultant. It is difficult to find a facility like this; in industrial commercial areas, properties are typically a large building and small parking lot; Parks maintenance needs a large parking lot and a small building. The spreadsheet includes a property on 70t' Ave with a 9,000 square foot building, Parks only need 1200 square feet and the property is 14,000 square feet, smaller than the proposed property at a cost of $12,500/month. Another comparable is an active warehouse with an 8,000 square foot lot and 4,000 square foot building for $5,000/month and no fence, no yard, and it needs tenant improvements. Councilmember Paine said in comparing the properties on the spreadsheet, the proposed property is ideal and in the right location. She pointed out this property is the site where the code amendment was made to c accommodate childcare centers. She asked staff to address benefits of the City leasing this property versus i the property owner finding another tenant. Ms. Feser explained the property has been for lease off and on i over the last 1'/2 years. When the City contacted the property owner, a number of individuals were interested c in the property, but he was willing to wait a month to hear the council's decision on the lease in exchange a for a stable tenant who will pay the lease, care for the facility, keep the landscape green, etc. M N O N Ms. Feser continued, the property owner has had challenges with past tenants. The property owner did not c have his own lease and asked the City to write the lease agreement which was drafted by Lighthouse and w the real estate consultant. The lease was still in draft form when it was presented to committee because staff was still tweaking some aspects. The property owner is a resident of the community, he owns a couple E childcare facilities and eventually wants to turn this into a childcare facility but no sooner than three years. She anticipated in three years, the City will have solved its space need issues. The comprehensive plan Q update process includes a facilities component where the use of City -owned facilities is considered. This is a short-term solution to a longer -term problem. Councilmember Chen said the Finance Committee vetted this and agreed to forward it to council. He emphasized this is a short term solution, and he looked forward to considering how the City can utilize assets it already owns. Ms. Feser said staff has done an assessment and knows the square footage they need; %2 acre is exactly what they were looking for and the property is a great match. Councilmember Chen observed few tenant improvements are required. He expressed support for the lease. Councilmember Teitzel observed the lease was a one year term. During that period if something else comes up that is even better, staff could move. Ms. Feser answered yes. Councilmember Teitzel asked if the search Edmonds City Council Draft Minutes June 20, 2023 Page 21 Packet Pg. 248 8.4.a for the appropriate parcel included southwest Lynnwood, west Mountlake Terrace and other areas outside Edmonds. Ms. Feser answered the goal was to stay within city limits for several reasons. Esperance would fall within that scope area and she anticipated there was some exploration in Shoreline and Mountlake Terrace, but locations outside Edmonds require travel time and leasing property in another City when it should probable be within the city limits. MOTION CARRIED UNANIMOUSLY. Mayor Pro Tern Tibbott suggested in the interest of time, postponing Agenda Item 9.7, Motion to Direct the City Attorney to Draft Language Amending 2.05.010 and 2.05.035. COUNCILMEMBER NAND, COUNCIL PRESIDENT PRO TEM OLSON, MOVED TO POSTPONE A MOTION TO DIRECT THE CITY ATTORNEY TO DRAFT LANGUAGE AMENDMENT 2.05.010 AND 2.05.035 TO NEXT WEEK OR THE FOLLOWING WEEK. MOTION CARRIED UNANIMOUSLY. 6. RESOLUTION ESTABLISHING EXPECTATIONS OF EXPENDITURES RELATED TO THE IMPLEMENTATION OF THE MOU Mayor Pro Tern Tibbott recalled at a previous meeting the council asked to have a resolution outlining expenditures. If the council is agreeable to the resolution, it will be placed on the consent agenda for approval next week. a Councilmember Nand commented she was satisfied with moving the resolution to the consent agenda, commenting it is a very positive and respectful way to address council's concerns related to expenditures related to implementation the MOU while still looping in the administration. Councilmember Teitzel relayed his understanding this has been discussed by Mayor Pro Tern Tibbott and Mayor Nelson and they are both comfortable with the language. He agreed this was a positive step forward that outlines the council's expectations and intent. He was comfortable voting on the resolution. Councilmember Paine envisioned this would also be over the mayor's $100,000 limit. She voiced her a support for the resolution. a Councilmember Buckshnis liked the addition of the 45 day public comment period, but was concerned there c may not be enough information to include something in the 2024 budget. cm 0 w Mayor Pro Tern Tibbott advised since this is the first time the council has seen the resolution, he suggested having it on next week's consent agenda for approval. It was the consensus of the council to have this on a) next week's consent agenda. City Attorney Jeff Mr. Taraday commented consensus is a legitimate way of z making a decision, but is not one the Edmonds council usually uses but it is allowed by Roberts Rules. 7. MOTION TO DIRECT THE CITY ATTORNEY TO DRAFT LANGUAGE AMENDMENT 2.05.010 AND 2.05.035. This item was postponed to a future meeting. 10. MAYOR'S COMMENTS 11. COUNCIL COMMENTS a Edmonds City Council Draft Minutes June 20, 2023 Page 22 Packet Pg. 249 8.4.a Councilmember Teitzel said he is looking forward to the grand opening of Civic Park Playfield on Friday after many years and investment. He lives near the park and assured it was beautiful. Staff was out today working hard, mowing and pulling weeds. The grand opening will include food trucks, music and games and he encouraged everyone to attend. Councilmember Teitzel said he has been hearing complaints from citizens about abandoned shopping carts in many areas of the City. He and Council President Pro Tem Olson are considering preliminary voluntary actions that could be undertaken that do not require City resources. He assured council was hearing citizens' concerns and thinking of ways to address them. Councilmember Chen reported he also looked forward to Friday's Civic Park Playfield ribbon cutting. He commented although it was cold and wet this weekend, the Art Festival was a success. He enjoyed the art community's hard work, finding it especially delightful to see the elementary school art work on display. Council President Pro Tem Olson thanked the Arts Festival volunteers, a large group of people who do an amazing job. People often comment they do not like the three minute limit for providing comment at council meetings and the inability to have a Q&A with council. Comments at the budget outreach this Thursday at 5 p.m. at the Meadowdale Clubhouse, 6801 Meadowdale Drive, are not limited to three minutes and council will answer questions. The mayoral debate is at 7 p.m. on Thursday at the Edmonds Waterfront Center. The Rotary's WINGO fundraiser is Friday at the Edmonds Yacht Club. She welcomed the Walls Law Firm to the City of Edmonds team. Councilmember Nand relayed she was unable to attend this weekend's events as she is a caretaker for her c father who has serious health issues. She acknowledged Edmonds' wonderful Juneteenth celebration which she read about in My Edmonds News. Juneteenth, also known as Emancipation Day and Freedom Day, a federal holiday, marks the day when Union soldiers arrived in Galveston, Texas on June 18, 1865 and a informed the last enslaved outpost of African Americans in the Confederate South that they were no longer a under bondage. She thanked the organizations that participated including Verdant Health Commission, Project Girl Mentoring Program, United Healthcare, City of Lynnwood, Edmonds School District and Lift c Every Voice Legacy who provided a lot of the performers and step dancers to celebrate Juneteenth. Juneteenth is a very special holiday that closely coincides with the 4t' of July which is how the nation o celebrates its independence. As people look forward to the 4t' of July celebration in Edmonds which c includes the wonderful parade, she recommended looking for organizations promoting social justice and a inclusion such as Pride of Edmonds and the Asian Service Center. She plans to pass out Black Lives Matter N stickers when she marches in the parade. Edmonds is still making strides in creating a more perfect union N the way the founders instructed in the documents that created the nation and Juneteenth is definitely a big o part. w c a� Councilmember Buckshnis thanked Donnie Griffin and Lift Every Voice Legacy who planned the r Juneteenth event. She thanked the Rotarians who volunteered at the Arts Festival and everyone who cc volunteered for the Arts Festival and the patrons party. The Arts Festival was very successful and a lot of a art was sold. Many spectacular artists live in Edmonds. She was excited for the opening of the Civic Park Playfield and will be there in spirit as she will physically be in Happy Camp, Oregon, spreading her aunts ashes. Councilmember Paine thanked the Arts Festival organizers, noting that event is a hit across the region. She welcomed new DEIA Commissioner Rebecca Perrault and thanked her for her service. She reminded of the budget survey available via the QR code and the budget workshop to gather community feedback on Thursday. She noted the ARPA funds designated for the ESD will be impactful for students' lives. Recovery from the pandemic is important for everyone in the community and the littlest kids need to learn that people Edmonds City Council Draft Minutes June 20, 2023 Page 23 Packet Pg. 250 8.4.a can have bad day, refocus, and get back to learning. She was proud the council had allocated those funds to ESD. Mayor Pro Tern Tibbott acknowledged this was the first time he facilitated a council meeting and thanked the council for their support, for doing their homework, coming to the meeting prepared and working through an ambitious agenda. Hearing about all the activities coming up made him thankful to be part of a city that has so much going on, so much citizen involvement, so many volunteers and so many exciting activities including the opening of the new park. 12. ADJOURN With no further business, the Council meeting was adjourned at 9:57 p.m. M N O N O O W r C d E z t� a Edmonds City Council Draft Minutes June 20, 2023 Page 24 Packet Pg. 251 8.5 City Council Agenda Item Meeting Date: 06/27/2023 Approval of claim checks. Staff Lead: Dave Turley Department: Administrative Services Preparer: Lori Palmer Background/History Approval of claim checks #257983 through #258074 dated June 22, 2023 for $2,480,389.70. Staff Recommendation Approval of claim checks. Narrative In accordance with the State statutes, City payments must be approved by the City Council. Ordinance #2896 delegates this approval to the Council President who reviews and recommends either approval or non -approval of payments. Attachments: positive pay 6-22-2023 Agenda Packet Pg. 252 8.5.a apPosPay Positive Pay Listing 6/22/2023 11:33:35AM City of Edmonds Page: 1 Document group: mmccreary Vendor Code & Name Check # Check Date Amount 076040 911 SUPPLY INC 257983 6/22/2023 8,274.23 065052 AARD PEST CONTROL 257984 6/22/2023 392.28 000135 ABSCO ALARMS INC 257985 6/22/2023 58,332.74 061029 ABSOLUTE GRAPHIX 257986 6/22/2023 2,351.26 064088 ADT COMMERCIAL 257987 6/22/2023 140.81 065568 ALLWATER INC 257988 6/22/2023 109.95 078796 AMETEK BROOKFIELD 257989 6/22/2023 2,290.67 069751 ARAMARK UNIFORM SERVICES 257990 6/22/2023 321.25 001801 AUTOMATIC W ILBERT VAULT CO 257991 6/22/2023 1,922.00 012005 BENDIKSEN & BALL POLYGRAPH 257992 6/22/2023 300.00 Y 071421 BIO CLEAN INC 257993 6/22/2023 469.63 0) 076741 BLOSSMAN SERVICES INC 257994 6/22/2023 113.11 074307 BLUE STAR GAS 257995 6/22/2023 1,146.15 E 073760 BLUELINE GROUP LLC 257996 6/22/2023 10,319.60 'Fa 065565 BUD CLARY FORD HYUNDAI 257997 6/22/2023 66,368.37 V 003001 BUILDERS SAND & GRAVEL 257998 6/22/2023 6,805.07 4" 0 018495 CALPORTLAND COMPANY 257999 6/22/2023 239.19 073029 CANON FINANCIAL SERVICES 258000 6/22/2023 280.06 0 077353 CAPITOL CONSULTING LLC 258001 6/22/2023 3,900.00 0. 003510 CENTRAL WELDING SUPPLY 258002 6/22/2023 2,718.02 CL Q 073249 CG ENGINEERING, PLLC 258003 6/22/2023 3,490.00 078902 COLEMAN OIL COMPANY LLC 258004 6/22/2023 44,636.06 076107 COMPASS HEALTH 258005 6/22/2023 9,741.70 076829 CRYE PRECISION LLC 258006 6/22/2023 1,015.67 Q 076172 DK SYSTEMS 258007 6/22/2023 372.94 m 068292 EDGE ANALYTICAL 258008 6/22/2023 1,406.00 N 076610 EDMONDS HERO HARDWARE 258009 6/22/2023 170.04 N 008705 EDMONDS WATER DIVISION 258010 6/22/2023 8,627.22 N 008812 ELECTRONIC BUSINESS MACHINES 258011 6/22/2023 686.89 009350 EVERETT DAILY HERALD 258012 6/22/2023 233.92 a 071572 EVIDENT CRIME SCENE PRODUCTS 258013 6/22/2023 2,819.50 0 009815 FERGUSON ENTERPRISES INC 258014 6/22/2023 1,564.59 079184 FORMA CONSTRUCTION COMPANY 258015 6/22/2023 689.18 O 072138 FUELCARE INC 258016 6/22/2023 6,705.97 a 078787 FW WA AURORA MARKETPLACE LLC 258017 6/22/2023 4,558.60 078226 GEIGLE SAFETY GROUP INC 258018 6/22/2023 179.92 012199 GRAINGER 258019 6/22/2023 1,660.42 t 076436 GRANITE CONSTRUCTION CO 258020 6/22/2023 1,107,066.32 U 074722 GUARDIAN SECURITY SYSTEMS 258021 6/22/2023 66.85 Q 012560 HACH COMPANY 258022 6/22/2023 278.47 074804 HARLES, JANINE 258023 6/22/2023 300.00 079271 HAROLD BECK & SONS INC 258024 6/22/2023 18,760.14 074966 HIATT CONSULTING LLC 258025 6/22/2023 200.00 061013 HONEY BUCKET 258026 6/22/2023 400.95 075966 HULBERT, CARRIE 258027 6/22/2023 3,092.85 072041 IBS INCORPORATED 258028 6/22/2023 1,087.06 069851 JACKYE'S JACKETS 258029 6/22/2023 126.72 076161 JIM DANDY SEWER & PLUMBING 258030 6/22/2023 1,639.93 078250 KAUFER DMC LLC 258031 6/22/2023 300.00 072650 KCDA PURCHASING COOPERATIVE 258032 6/22/2023 267.95 075159 LIFE INSURANCE CO OF NO AMER 258033 6/22/2023 15,759.73 074263 LYNNWOOD WINSUPPLY CO 258034 6/22/2023 280.81 075716 MALLORY PAINT STORE INC 258035 6/22/2023 487.95 Page: 1 Packet Pg. 253 apPosPay Positive Pay Listing 6/22/2023 11:33:35AM City of Edmonds Document group: mmccreary Vendor Code & Name Check # Check Date Amount 067235 MARYS TOWING INC 258036 6/22/2023 842.01 076177 MCKINSTRY LOCKBOX 258037 6/22/2023 39,531.21 061286 MI FLUID POWER SOLUTIONS 258038 6/22/2023 60.89 020900 MILLERS EQUIP & RENT ALL INC 258039 6/22/2023 54.07 020900 MILLERS EQUIP & RENT ALL INC 258040 6/22/2023 36.37 074556 MOORE, IACOFANO & GOLTSMAN INC 258041 6/22/2023 18,297.50 072833 MVP 258042 6/22/2023 884.00 067834 NATIONAL CONSTRUCTION RENTALS 258043 6/22/2023 39.78 024302 NELSON PETROLEUM 258044 6/22/2023 37.04 064215 NORTHWEST PUMP & EQUIP CO 258045 6/22/2023 965.46 072507 PEACE OF MIND OFFICE SUPPORT 258046 6/22/2023 144.00 074793 PETDATA INC 258047 6/22/2023 446.40 078800 POPA & ASSOCIATES 258048 6/22/2023 600.00 076909 POWER DMS INC 258049 6/22/2023 3,530.21 030400 PUGET SOUND CLEAN AIR AGENCY 258050 6/22/2023 600.00 030695 PUMPTECH INC 258051 6/22/2023 10,447.55 071702 RAILROAD MGMT CO III LLC 258052 6/22/2023 344.67 079286 REFINED METAL WORKS LLC 258053 6/22/2023 30,969.90 036955 SKY NURSERY 258054 6/22/2023 24.27 037375 SNO CO PUD NO 1 258055 6/22/2023 3,552.55 038100 SNO-KING STAMP 258057 6/22/2023 131.50 006630 SNOHOMISH COUNTY 258056 6/22/2023 1,065.00 037303 SO SNOHOMISH CO FIRE & RESCUE 258058 6/22/2023 917,042.00 038300 SOUND DISPOSAL CO 258059 6/22/2023 3,396.02 009400 STELLAR INDUSTRIAL SUPPLY INC 258060 6/22/2023 775.57 074797 SUPER CHARGE MARKETING LLC 258061 6/22/2023 650.00 040916 TC SPAN AMERICA 258062 6/22/2023 396.42 075025 THE BRANDING IRON LLC 258063 6/22/2023 42.43 079136 THE GORDIAN GROUP INC 258064 6/22/2023 1,176.43 027269 THE PART WORKS INC 258065 6/22/2023 22,195.17 038315 TK ELEVATOR CORPORATION 258066 6/22/2023 520.52 070774 ULINE INC 258067 6/22/2023 308.12 073310 UNISAFE INC 258068 6/22/2023 887.34 067917 WALLY'S TOWING INC 258069 6/22/2023 620.46 067195 WASHINGTON TREE EXPERTS 258070 6/22/2023 6,630.00 075635 WCP SOLUTIONS 258071 6/22/2023 4,249.14 071467 WEST COAST PET MEMORIAL 258072 6/22/2023 114.00 079243 YOUNG MARKETING 258073 6/22/2023 2,200.00 011900 ZIPLY FIBER 258074 6/22/2023 1,112.96 G ra n d Tota I : 2,480,389.70 Total count: 92 Q Page: 2 Packet Pg. 254 8.6 City Council Agenda Item Meeting Date: 06/27/2023 Supplemental Local Agency Consultant Agreement with WSP for Highway 99 Stage 2 Staff Lead: Rob English Department: Engineering Preparer: Emiko Rodarte Background/History On May 17, 2022 City Council approved the Local Agency Consultant Agreement with WSP for the Hwy 99 Revitalization & Gateway Project Stage 2. Staff Recommendation Approve Supplemental Agreement. Narrative The City contracted with WSP in May 2022 to provide construction management and material testing services for the Highway 99 Revitalization & Gateway Project Stage 2. The services were needed to support City staff during the construction phase. The majority of construction work is now complete and staff will be working with WSP over the next several months to finalize project documents and close-out the project. Local agencies must use WSDOT's Local Agency Consultant Agreement when there are federal or state transportation grant funds. This Agreement document includes a completion date. The original Local Agency Consultant Agreement with WSP had a maximum payable amount of $606,578 and a completion date of June 30, 2023. The proposed Supplemental Agreement will extend the completion date to December 31, 2023 to provide ample time to complete the close-out phase. The Supplemental Agreement is only necessary to extend the contract time and it is a no cost adjustment to the original Agreement. Attachments: Attachment 1 - Supplemental Agreement Packet Pg. 255 8.6.a AM Washington State To Department of Transportation Supplemental Agreement Organization and Address Number I WSP USA Inc. 1001 4th Ave, Ste, 3100 Seattle, WA 98154 Original Agreement Number Phone: 206-431-2300 Project Number Execution Date Completion Date HLP-CNWA(013) 12/31/23 Project Title New Maximum Amount Payable Highway 99 Revitalization and Gateway Project (Stage 2) $606,578 Description of Work This supplement is for a contract extension only. The original scope of work is unchanged. The Local Agency of City of Edmnonds desires to supplement the agreement entered in to with WSP USA Inc. and executed on 5/24/2022 and identified as Agreement No All provisions in the basic agreement remain in effect except as expressly modified by this supplement. The changes to the agreement are described as follows: Section 1, SCOPE OF WORK, is hereby changed to read: No change 11 Section IV, TIME FOR BEGINNING AND COMPLETION, is amended to change the number of calendar days for completion of the work to read: New Contract Completion Date 12/31/2023 III Section V, PAYMENT, shall be amended as follows: No Change If you concur with this supplement and agree to the changes as stated above, please sign in the Appropriate spaces below and return to this office for final action. By: WSP USA By: CIty of Edmonds Consultant Signature Approving Authority Signature a DOT Form 140-063 Revised 09/2005 Packet Pg. 256 8.7 City Council Agenda Item Meeting Date: 06/27/2023 Supplemental Agreement with SCJ for Highway 99 Stage 2 Staff Lead: Rob English Department: Engineering Preparer: Emiko Rodarte Background/History On September 9, 2017, City Council approved Local Agency Agreement with SCJ for the Hwy 99 Revitalization & Gateway Project. On December 13, 2018, City Council approved a Supplemental Agreement with SCJ for the Hwy 99 Revitalization & Gateway Project. On December 17, 2019, City Council approved a Supplemental Agreement with SCJ for the Hwy 99 Revitalization & Gateway Project. On July 21, 2020, City Council approved a Supplemental Agreement with SCJ for the Hwy 99 Revitalization & Gateway Project. On October 19, 2021, City Council approved a Supplemental Agreement with SCJ for the Hwy 99 Revitalization & Gateway Project. On April 19, 2022, City Council approved a Supplemental Agreement with SCJ for the Hwy 99 Revitalization & Gateway Project. Staff Recommendation Approve Supplemental Agreement. Narrative The City contracted with SCJ in September 2017 to provide design services for the Highway 99 Revitalization & Gateway Project Stage 2. In April 2022, the original agreement was amended to provide engineering support during the construction phase. One remaining task to be completed is the as -built drawings which document the field changes made during the construction phase. SCJ will complete the final as -built drawings for archive purposes after the Contractor provides plans showing the field changes made during construction. Local agencies must use WSDOT's Local Agency Consultant Agreement when there are federal or state transportation grant funds. This Agreement document includes a completion date. The current Local Agency Consultant Agreement with SCJ has a maximum payable amount of $1,558,613 and a completion date of June 30, 2023. The proposed Supplemental Agreement will extend the completion date to Packet Pg. 257 8.7 December 31, 2023 to provide ample time to complete the as -built drawings. The Supplemental Agreement is only necessary to extend the contract time and it is a no cost adjustment to the current Agreement. Attachments: Attachment 1- Supplemental Agreement Packet Pg. 258 8.7.a Adft � Washington State �I/ Department of Transportation Supplemental Agreement Organization and Address Number 6 Shea, Carr, & Jewell, Inc. 8730 Tallon Lane NE, Suite 200 Original Agreement Number Lacey, WA 98516 LA-9146 Phone: 360-352-1465 Project Number Execution Date Completion Date HLP-CNWA(13) 9/13/2017 12/31/2023 Project Title New Maximum Amount Payable Highway 99 Gateway/Revitalization Project No Change ($1,588,613 Maximum Amount Payable) Description of Work No change in scope of work. Extend the completion date to 12/31/2023. The Local Agency of desires to supplement the agreement entered in to with Shea, Carr, & Jewell, Inc. and executed on September 13, 2017 and identified as Agreement No. LA-9146 All provisions in the basic agreement remain in effect except as expressly modified by this supplement. The changes to the agreement are described as follows: Section 1, SCOPE OF WORK, is hereby changed to read: No change in scope. 11 Section IV, TIME FOR BEGINNING AND COMPLETION, is amended to change the number of calendar days for completion of the work to read: Completion date to extend to December 31, 2023. III Section V, PAYMENT, shall be amended as follows: No change - Maximum Amount Payable S1,588,613.00 If you concur with this supplement and agree to the changes as stated above, please sign in the Appropriate spaces below and return to this office for final action. In sultant Signature Approving Authority Signature Date DOT Form 140-063 Revised 09/2005 Packet Pg. 259 8.8 City Council Agenda Item Meeting Date: 06/27/2023 Resolution Establishing Expectations of Expenditures related to the Implementation of the MOU Staff Lead: City Council Department: City Council Preparer: Beckie Peterson Background/History During the May 23, 2023 Council meeting, an agenda item was added "Resolution Regarding Internal Spending". A motion directed the City Attorney to draft a resolution based on discussion during the deliberations of an earlier agenda item "WSDOT/ City of Edmonds Memorandum of Understanding". This motion passed (4-3). Minutes attached. City Attorney Jeff Taraday drafted a resolution that Council reviewed during the June 20, 2023 Council Meeting. Brief discussion was followed, supportive of the resolution and its language with consensus to place this item on consent at the next meeting with no changes or amendments suggested. Minutes for the 6/20/23 meeting are in this agenda packet (consent). Recommendation Approve the resolution. Narrative This resolution expresses Council's desire to work collaboratively with administration to develop a spending plan for expenditures related to furthering the city's interest with respect to the MOU and the former Unocal Property. Attachments: Pages 13-20 and 23 from 2023-05-23 City Council - Full Minutes-3381-2 2023-06-15 resolution re expenditure toward acquisition of Unocal property Packet Pg. 260 8.8.a Councilmember Teitzel observed some councilmember do not like the letter at all and prefer to just continue with the MOU. He suggested if the council takes that approach, it completely eliminates the possibility of the other option. The letter keeps that option open. Councilmember Chen raised a point of order, stating council comments should be related to the amendment. Councilmember Teitzel explained he was speaking to the amendment to strike the second to last paragraph related to the state retaining ownership. If that paragraph is removed and the letter is subsequently abandoned, that leaves only the path of purchase and completely negates the other option which he felt should be explored further. Councilmember Chen expressed support for the amendment. His first impression of the letter is it delivers contradicting information; the City has been trying to acquire the property from WSDOT, but this paragraph goes in a different direction. Councilmember Buckshnis agreed with Councilmember Teitzel, some aspects need to be retained such as that the Governor signed the budget providing the City "the right of first purchase." City representatives have addressed the marsh with the Governor when talking about the connector in Washington DC in 2019 so he is very familiar with the marsh. The marsh is on the WRIA 8 priority list and Puget Sound Partnership, all of whom are aware of the City's restoration efforts. She was unclear why the entire paragraph needed to be removed; the marsh is a state priority and one of the Governor's priorities so she did not view it as conflicting. The letter only asks for a meeting and a meeting is unlikely to occur until September/October. She concluded she did not see any conflict with the MOU or with WSDOT and she did not think WSDOT would get their feeling hurt as a result. She did not support the amendment. Councilmember Nand commented this is putting the cart in front of horse. The council needs to properly inform themselves about their bargaining position, vis-a-vis the environment impact if the City does or does not takes title before making any representation to state government. She preferred tabling both the MOU and the letter until after July when Ecology releases documentation and the City has an opportunity to digest how that materially affects its bargaining position. The public is excited because the marsh is a huge priority and a multidecade project that will affect Edmonds for generations. She questioned why the council needed to rush forward with either the MOU or the letter instead of waiting until Ecology releases the environmental documents and the City has an opportunity to properly digest how it affects its bargaining position. This is a very momentous potential acquisition for the City and she wanted to ensure it was done properly. UPON ROLL CALL, AMENDMENT CARRIED (5-2), COUNCILMEMBERS CHEN, OLSON, PAINE AND NAND AND COUNCIL PRESIDENT TIBBOTT VOTING YES; COUNCILMEMBERS TEITZEL AND BUCKSHNIS VOTING NO. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER NAND, TO TABLE THE LETTER UNTIL WE HAVE THE INFORMATION FROM ECOLOGY. Mr. Passey advised a motion to table is not debatable. UPON ROLL CALL, MAIN MOTION AS AMENDED CARRIED (4-3), COUNCIL PRESIDENT TIBBOTT AND COUNCILMEMBERS BUCKSHNIS, OLSON AND NAND VOTING YES; COUNCILMEMBERS TEITZEL, CHEN AND PAINE VOTING NO. Mayor Nelson declared a brief recess. 3. WSDOT/CITY OF EDMONDS MEMORANDUM OF UNDERSTANDING Edmonds City Council Approved Minutes Q May 23, 2023 Page 13 Packet Pg. 261 8.8.a Community/Culture/Economic Development Director Todd Tatum reviewed: • Recap o Council approved resolution asking the legislature to require WSDOT to give the City first right of purchase (in Transportation Budget) o Council expressed desire to write letter o Council expressed concerns about upcoming Ecology review o Council expressed concerns about the impact on the City's bargaining position o Council expressed questions about the timing of MOU • First right of purchase in the transportation budget o Does not guarantee the City's ownership o Does not require that the City purchase o Signals the City's intent o Does not give the City a process or model to follow to get to its ow decisions about purchasing decisions o Does not talk about risk or post -purchase options Ecology documents o Governed by the Model Toxics Control Act (MTCA) o Interim Action Plans o Upcoming documents: ■ Feasibility study ■ Cleanup action plan ■ Consent decree ■ SEPA determination of non -significance o MANY preceding documents which have led to these City studies o Existing Conditions & Site Constraints 0 2019 Shannon & Wilson study produced multiple options for daylighting Willow Creek, modeling and offered the option it was a feasible project o Council concerns about details of the study and another study was undertaken which concurred • Long term options discussed in previous meetings o Purchase property o Encourage transfer of property to another state agency o Other partners/non-profits who might want to transform and manage the property Mr. Tatum described his background as the development division manager with a natural resource agency so he is familiar with natural resource agencies and a good understanding of partnerships. He reviewed two from his history: Edmonds City Council Approved Minutes Q May 23, 2023 Page 14 Packet Pg. 262 8.8.a Lake Sammamish State Park o Complex restoration project that included Issaquah Creek o Entered into MOU with Mountain to Sound Greenway Nisqually State Park o Former dump site o Feasibility study with preferred options prepared o Entered into MOU with the Nisqually Tribe about development of the property and Weyerhauser cleaned up the site and a likely transfer of remediated site to Washington State Parks Mr. Tatum continued his presentation: • Next Steps o Sign the MOU ■ The City can withdraw from the MOU without penalty o Use a portion of the dollars set aside for the property to hire a consultant/s to aid in the next steps of due diligence Recommendation o Authorize Mayor Nelson to sign MOU Councilmember Buckshnis commented Lake Sammamish State Park receives WRIA 8 funds every year. She explained in 2019 a simple majority put the marsh into stormwater which affected stormwater rates and used as mitigation for the Connector so it never went through a public process. The Shannon & Wilson report is irrelevant because it never when through a public process. When then -Director Williams proposed the project to RCO for grants, WRIA 8 said there needed to be a public process. She emphasized Design 6 was mitigation for the Connector which the council decided against. She did not think the City should spend any money on consultants or real estate people to look at the marsh until the Ecology reports are received and there are comments from Ecology. Councilmember Buckshnis continued, one report that was left out was the Terrestrial Ecological Evaluation Report which is part of the Model Toxic Control Act related to unseen chemicals that needs to come from Unocal. She expressed concern that without the science, the City does not have enough information to make decisions. The science is important before the City makes decisions about going down any path. The right of first purchase is included in the last biennial and this biennial, a good sign that the state legislature recognizes the City's intent to purchase it. She expressed support for tabling the MOU. Councilmember Nand expressed appreciation for Mr. Tatum's responsiveness to questions and concerns from the council and the public. She agreed the City needed to do its due diligence and proceed with caution and speak in unison to the state with regard to this potential momentous real estate acquisition. COUNCILMEMBER NAND MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO TABLE CONSIDERATION OF THE MOU UNTIL JULY POSSIBLY IN TANDEM WITH THE LETTER THAT THE COUNCIL JUST TABLED. UPON ROLL CALL, MOTION FAILED (3-4), COUNCILMEMBERS TEITZEL, BUCKSHNIS AND NAND VOTING YES; COUNCILMEMBERS CHEN, OLSON, AND PAINE AND COUNCIL PRESIDENT TIBBOTT VOTING NO. Councilmember Chen thanked Mr. Tatum for his analysis and addressing questions raised in prior meetings. He referred to Sections 6.1 which states the MOU is non -binding, 6.2 which states amendments can be made with the agreement of both parties and 6.3 which indicates either party can terminate the MOU with written notice. City Attorney Jeff Taraday advised the MOU is a nonbinding agreement and easily terminable by either party at any time for any reason. Edmonds City Council Approved Minutes Q May 23, 2023 Page 15 Packet Pg. 263 8.8.a Main Motion COUNCILMEMBER CHEN MOVED, SECONDED BY COUNCILMEMBER PAINE, TO AUTHORIZE MAYOR NELSON TO SIGN THE MOU. Amendment # 1 COUNCILMEMBER OLSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO AMEND THAT EXPRESS COUNCIL APPROVAL IS NEEDED IN ADDITION TO BUDGET AUTHORITY FOR ANY AND ALL SPENDING ON MARSH RELATED PROJECTS. Councilmember Olson said the bottom line is not spending money on consultants until the City learns about what comes out in the next report. This document signals the City's intent; whether it is binding or not, it puts the City on a path which was what the authors of the letter objected to. Whether or not the path is binding, that is a concern because the council is still questioning whether that is the right path. She understood and agreed with what the authors of the letter were trying to do. The letter was tabled which does not mean tabling it forever, it may be for a short while a new version is developed. Councilmember Olson continued, she was in favor of going forward with the MOU, not because she thought it was the perfect instrument or that she wanted to signal the City's intent, but because a lot of the work has already done with this agency and she feared sending a mixed signal of thanks but no thanks did not bode well for the City. She has read the MOU numerous times and felt confident it was not binding in any way, but it did signal intent of going in a direction when the City should be worried about liability especially without having all the results of study. Councilmember Olson continued, with regard to her proposed amendment, the City can enter MOU but should be very prudent about next steps. Council should be more involved in what is happening and should discuss spending on consultants prior to getting the scientific reports from Ecology. She did not think the council should support the MOU without having limits on the steps the administration can take to move in this direction. The council should be in lockstep and participating in all those decisions; this would help make that happen by requiring council approval of spending related to marsh vetting. Regarding the motion to restrict spending, Councilmember Paine anticipated that would put sway on the MOU that is the opposite of the needed support, available options and exit pathways with WSDOT. Because of the way the MOU is structured, the City will have access to all the past Ecology decisions and data points as well as access to information Ecology plans to publish in July/August. She was not necessarily against the amendment, but wanted to ensure the council was not tying hands so when the information is provided there will be more options and a longer timeline to conduct due diligence. This is terribly exciting and fraught with risk and she wanted to ensure the council was not unnecessarily tying the administration's hands by restricting the ability to do that due diligence by requiring council approval. Council President Tibbott expressed support for the amendment, finding it puts the council on equal footing with the administration. He understood the council would typically approve a consultant contract, but making it explicit allows the council to evaluate the benefits of the strategies the City might use, including funding for consultants. Mayor Nelson said council should be aware if they are going down this path, then he will be evaluating the time and staff allocation and availability to councilmembers. Councilmember Nand observed the amendment was to the motion authorizing Mayor Nelson to sign the MOU, but the amendment limits his authority to sign contracts under $100,000. Councilmember Olson answered it would limit his authority to sign contracts related to the marsh. She did not change the original motion to approve the MOU; the amendment was to require express council approval in addition to budget Edmonds City Council Approved Minutes Q May 23, 2023 Page 16 Packet Pg. 264 8.8.a authority for marsh related projects. Councilmember Nand asked how that would affect ongoing consultant contracts that the City is already engaged in related to the marsh. Mr. Tatum answered the langue is pretty broad; if taken at face value, there are a lot of projects going on related to marsh. The MOU is asking for something more specific, funding to further the purchase of the property, funding related to marsh acquisition. Councilmember Olson said if that was agreeable to the seconder, she was happy with that clarification. Councilmember Nand observed if this amendment passed, it would reduce Mayor Nelson's contracting authority related to acquisition of the marsh project to zero. Mr. Tatum said that was his understanding. Councilmember Nand asked how administratively burdensome it would be to operate under this amendment, to bring every expenditure to council. Mr. Tatum asked for clarification regarding what expenditures this was related to, assuming it would not relate to anything that was currently ongoing, construction or otherwise. It would be related to new money spent on appraisals, risk analysis, due diligence, etc. He said it was hard to say how administrative burdensome this amendment would be. He assumed there would be a quarterly budget amendment after the Ecology documents come out and the council would authorize up to certain amount and bills up to that amount could be paid. Mr. Taraday asked for clarification; if the amendment passes, he will inevitably be asked how to comply with it so he wanted to ensure he understood the intent. As Mr. Tatum said, logically the motion would not be retroactive with respect to contracts that have already been made or debts that have already been incurred, because it obviously would be a problem if a debt had already been incurred and the council decided not to approve the spending when it was previously within the mayor's spending authority. It sounds like the intent of the maker of the motion would be that future contracts would need to go to council for approval whether or not there was budget authority which is a significant change from the mayor's current spending authority. The mayor's spending authority is set forth in purchasing policies adopted by resolution. It would seem the proper place to make the change to that spending authority would be in that document so there are no inconsistencies versus doing it via an amendment to a motion to approve an MOU. He summarized there was a procedural piece to the motion that he was unclear about. Councilmember Buckshnis asked where in the MOU this amendment would be added. She was in favor of the council being apprised of spending on consultants, attorneys, etc. during this MOU process, but it did not seem to fit in the MOU. Councilmember Olson responded it was a more general thing to apply to the marsh acquisition so the council can control going down this trajectory. There are different paths and the timing of those paths is something other councilmembers have objected to. It seems prudent to take this opportunity to control whether the council is moving forward prior to having the information that everyone is excited to consider. She suggested bringing it back next week once the right place for the amendment is determined. She was not looking for the dollar amount to be lowered or different which is the more general policy that Mr. Taraday was referring to, her concern was whether the City is paying for consultants or attorneys related to marsh acquisition prior to it being the right move for the City. Councilmember Buckshnis agreed with Councilmember Olson's statement. She relayed her intent to rescind her vote on Agenda Item 8.2. Councilmember Olson suggested staff determine where the amendment would go and bring it back next week. Councilmember Paine commented this process seems to be internal to Edmonds and does not belong in the MOU because it has nothing to do with the relationship/understanding in the MOU. Mr. Taraday agreed. If Edmonds City Council Approved Minutes Q May 23, 2023 Page 17 Packet Pg. 265 8.8.a the council wants to direct him to draft a resolution to accomplish something along lines of Councilmember Olson's amendment, that would be an appropriate way to accomplish that. He agreed a spending procedure internal to the City did not belong in an agreement with WSDOT. Councilmember Chen said he can appreciate Councilmember Olson's intent for the council to have more control related to the marsh. However, this is an internal spending limit and not part of the MOU. Personally, if the council gives the mayor the authority to sign the MOU, the City has qualified staff and experts in this area, and he did not want to micromanage staff. He trusts staff as he does not have personal knowledge of the marsh. The council has previously approved the mayor's spending limit of $100,000 and anything over that has to come to council. He trusted the City's professional staff to make decisions they are authorized to make. Councilmember Nand commented if a majority of councilmembers are not comfortable with signing the MOU tonight, she wished her motion to table had passed. This is a momentous document for the City and a momentous process to potentially acquire the Unocal property, something people in Edmonds have been working on for decades. She noted after offering her original amendment, Councilmember Olson said she would like staff to work on incorporating the revision to the mayor's internal spending limits either within the MOU or a separate document and bring it back next week. She asked if Councilmember Olson was amending her original amendment. Councilmember Olson said the MOU should be tabled until the resolution regarding the internal spending limit on marsh acquisition related spending comes back to council so they would come back together. Action on Amendment # 1 COUNCILMEMBER OLSON WITHDREW THE AMENDMENT WITH THE AGREEMENT OF THE SECOND. COUNCILMEMBER OLSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO TABLE THE MOU UNTIL THE RESOLUTION REGARDING THE SPENDING LIMITS ON MARSH ACQUISITION EXPENSES COMES BACK TO COUNCIL. Councilmember Chen raised a point of order, stating there was a motion on the floor. Councilmember Olson explained that was why she proposed the spending limit as an amendment because the motion to approve the MOU was already on the floor and she did not want to vote for the MOU until the spending limit was in place. Mayor Nelson assured no money would be spent regarding the marsh until after next week. Councilmember Buckshnis raised a point of order, asking for a parliamentary decision because during Agenda Item 8.2, there was a motion on the floor, and the council voted to table instead. She reiterated her intent to rescind her vote on the previous motion. Mr. Taraday explained a motion to table is not debatable, but a motion to postpone something indefinitely is debatable. The council frequently uses the word table; if the intent is to postpone indefinitely or to a certain time, the motion should be phrased that way. Councilmember Buckshnis said Councilmember Chen's point of order was related to there already being a motion on the table, the motion to authorize Mayor Nelson to sign the MOU. During Agenda Item 8.2, there was also a motion on the floor that the council did not vote on, but voted on a motion to table. Mr. Taraday advised all three of these are in order when there is main motion pending. When there is a main Edmonds City Council Approved Minutes Q May 23, 2023 Page 18 Packet Pg. 266 8.8.a motion pending, the council has the option to postpone indefinitely which is debatable, postpone to a certain time which is also debatable, or table which is not debatable. Councilmember Olson restated her motion: TO TABLE THE MOU UNTIL THE RESOLUTION REGARDING THE INTERNAL SPENDING LIMIT ON MARSH ACQUISITION EXPENSES COMES BACK. UPON ROLL CALL, MOTION FAILED (3-4), COUNCILMEMBERS TEITZEL, BUCKSHNIS AND OLSON VOTING YES; COUNCIL PRESIDENT TIBBOTT AND COUNCILMEMBERS CHEN, PAINE AND NAND VOTING NO. Amendment 42 COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO AMEND SECTION 2.8 TO READ, "THE CITY HAS EXPRESSED INTEREST IN ACQUIRING THE FORMER UNOCAL PROPERTY FOR THE PURPOSE OF EXPANDING THE ADJOINING EDMONDS MARSH ESTUARY AND THE CLEANUP SHOULD BE COMMENSURATE WITH THE CITY'S USE OF THE SITE FOR SALMON RESTORATION. Councilmember Buckshnis said the City needs to ensure the cleanup covers salmon recovery. Her amendment was to expand the language to be very clear that the cleanup needs to be commensurate with salmon restoration. The current language only refers to expanding the adjoining Edmonds Marsh Estuary which could mean a contaminated park which is not what the City wants. The amendment clarifies than the cleanup should be commensurate with the City's use of the site for salmon recovery. Councilmember Chen asked if that limited actions in the marsh to salmon recovery, noting the marsh is more than salmon recovery. Councilmember Buckshnis responded the most important thing to salmon restoration/salmon recovery is the water. Salmon restoration will benefit birds, bees, etc., the entire habitat. The language could include habitat, but the WRIA 8 grant was related to salmon recovery. The state's key goal is salmon recovery. Once salmon are restored, all the other critters come into place. Councilmember Paine viewed the proposed language as the Department of Ecology's job. She asked how that language would be put into action. Mr. Tatum said the language is not within the purview of relationship, the level of cleanup is governed by MTCA and Ecology's determinations or the City's own actions pre or post transfer of the land. He could not imagine WSDOT would accept that language because it either is not in their purview or requires them to clean up the property at their expense. Mr. Taraday said WSDOT has been pretty careful about making sure the language in the MOU does not interfere with their contractual relationship with Unocal. The proposed language proports to dictate how the cleanup would be done, something that has been heavily contracted between WSDOT and Unocal and he assumed they would be concerned about doing anything that could be perceived as interfering with their contract with Unocal especially when there is already pending litigation. Councilmember Teitzel referred to Section 2.14 of the Transportation budget, the section that governs the first right of purchase in the budget; the last part of the sentence says, "This would be for the City's intended use of the property to rehabilitate nearshore habitat for salmon and related species." He concluded the amendment proposed by Councilmember Buckshnis was consistent with the Transportation budget. Mr. Taraday suggested WSDOT did not need to sign off on the Transportation budget, but the City would need WSDOT to sign off on this MOU. Mr. Tatum said the language refers to the level of cleanup on the site versus the purpose or intended use. Amendment #3 COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO AMEND THE AMENDMENT TO CHANGE THE WORDING TO, "FOR THE CITY'S INTENDED Edmonds City Council Approved Minutes Q May 23, 2023 Page 19 Packet Pg. 267 8.8.a USE OF PROPERTY TO REHABILITATE NEARSHORE HABITAT FOR SALMON AND RELATED SPECIES. Councilmember Olson said she was very willing to support the amendment. The wording of the MOU was floated by WSDOT and they were open to it. She wondered if it was important enough to add this language and WSDOT was not open to it. Councilmember Nand agreed the amendment and the amendment to the amendment had the potential to trigger hesitation from the City's partners in the MOU. She was hesitant to make a statement about who is responsible for cleanup and the level of cleanup at this stage. She asked how Councilmember Teitzel's amendment to Councilmember Buckshnis' amendment would affect the City's bargaining position with WSDOT. Councilmember Teitzel read the entire revision to 2.8 in the MOU: "The City has expressed an interest in acquiring the Former Unocal Property for the City's intended use of the property to rehabilitate nearshore habitat for salmon and related species." Councilmember Nand asked how the proposed amendment would affect the signaling of intent and bargaining position with WSDOT and how this might potentially affect the stages for acquiring the marsh. Mr. Tatum responded he was not sure it would have a material impact. Mr. Taraday agreed, advising although he could not speak for WSDOT, he was hopeful the amended amendment would not be objectionable to WSDOT. Action on Amendment #2 UPON ROLL CALL, AMENDMENT CARRIED (5-2), COUNCILMEMBERS TEITZEL, CHEN, BUCKSHNIS, OLSON AND NAND VOTING YES; COUNCIL PRESIDENT TIBBOTT AND COUNCILMEMBER PAINE VOTING NO. Action on Amendment #3 UPON ROLL CALL, AMENDMENT CARRIED (5-2), COUNCILMEMBERS TEITZEL, CHEN, BUCKSHNIS, OLSON AND NAND VOTING YES; COUNCIL PRESIDENT TIBBOTT AND COUNCILMEMBER PAINE VOTING NO. MAIN MOTION AS AMENDED CARRIED (6-1), COUNCILMEMBERS TEITZEL, CHEN, OLSON, PAINE AND NAND AND COUNCIL PRESIDENT TIBBOTT VOTING YES; COUNCILMEMBER BUCKSHNIS VOTING NO. 4. ADOPT ORDINANCE TO ADD COMPOST PROCUREMENT REQUIREMENT IN COMPLIANCE WITH RCW 43.19A.150 Mayor Nelson advised this item was removed from the agenda due to staff absence. It is not time sensitive. 5. RESOLUTION ADOPTING THE 2024 BUDGET PLANNING CALENDAR Council President Tibbott explained the calendar was developed based on input at the budget retreat. Before making amendments to calendar, he recommended a motion to adopt the resolution followed by amendments. He reviewed: • Proposed 2023 Budget Schedule for the 2024 Budget (for planning purposes, subject to change) Edmonds City Council Approved Minutes Q May 23, 2023 Page 20 Packet Pg. 268 8.8.a UPON ROLL CALL, MOTION CARRIED (4-3), COUNCILMEMBERS TEITZEL, BUCKSHNIS, OLSON AND COUNCIL PRESIDENT TIBBOTT VOTING YES; COUNCILMEMBERS CHEN, PAINE AND NAND VOTING NO. 6. RESOLUTION REGARDING INTERNAL SPENDING COUNCILMEMBER OLSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO HAVE THE CITY ATTORNEY DRAFT A RESOLUTION BASED ON THE CONVERSATION EARLIER IN THE MEETING. During the vote, Councilmember Chen raised a question about the dollar limit, stating if it was zero, he would vote no. Mayor Nelson advised the motion does not specify that detail. UPON ROLL CALL, MOTION CARRIED (4-3), COUNCILMEMBERS TEITZEL, BUCKSHNIS AND OLSON AND COUNCIL PRESIDENT TIBBOTT VOTING YES; COUNCILMEMBERS CHEN, PAINE AND NAND VOTING NO. Councilmember Buckshnis asked to reconsider her vote on Agenda Item 8.2 and add it to the agenda. Councilmember Olson raised a point of order, asking if there was a provision that allowed this to be taken up at the next meeting. Councilmember Buckshnis said she planned to do that once it was on the agenda. Mr. Taraday advised Councilmember Buckshnis was not a prevailing party on the motion to table 8.2 and therefore would not be able to move for reconsideration. Councilmember Buckshnis said she voted yes and wanted to change her vote. Mr. Taraday said his notes reflect there was a motion to table the letter. Councilmember Buckshnis said she voted yes and wanted to reconsider her vote. Mr. Taraday reiterated his notes did not indicate she was on the prevailing side. City Clerk Scott Passey said if Councilmember Buckshnis voted to table, the vote can only be reconsidered by someone who voted against it. If she voted in favor of tabling, she could not move for reconsideration. Councilmember Buckshnis said she wanted to change her vote. Mr. Passey said Councilmember Buckshnis voted to lay the motion on table. Mayor Nelson explained Councilmember Buckshnis could not change her vote because the vote failed. Councilmember Buckshnis said the prevailing party tabled the letter and she would like reconsider and change her vote. Mr. Taraday suggested Councilmember Buckshnis make a motion to take the item from the table. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER OLSON, TO REMOVE IT FROM THE TABLE. UPON ROLL CALL, MOTION FAILED (3-4), COUNCILMEMBERS TEITZEL, BUCKSHNIS AND OLSON VOTING YES; COUNCIL PRESIDENT TIBBOTT AND COUNCILMEMBERS CHEN, PAINE AND NAND VOTING NO. 9. MAYOR'S COMMENTS Mayor Nelson said he was looking forward to the Memorial Day Ceremony on Monday at 11 a.m. 10. COUNCIL COMMENTS Councilmember Nand relayed some marsh supporters who came to her office hours last week provided her a flyer about contest in June for artwork inspired by the marsh. She invited anyone interested in participating in the art contest to memorialize the marsh in artwork to reach out to her and she will connect them with the art contest organizers. Edmonds City Council Approved Minutes Q May 23, 2023 Page 23 Packet Pg. 269 8.8.b RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, ESTABLISHING EXPECTATIONS FOR CITY EXPENDITURES RELATED TO THE IMPLEMENTATION OF THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF EDMONDS AND WSDOT RELATED TO THE ACQUISITION OF THE FORMER UNOCAL PROPERTY. WHEREAS, on May 23, 2023, the city council authorized the mayor to execute a memorandum of understanding with WSDOT concerning the former Unocal bulk fuel terminal (the "MOU"); and WHEREAS, the MOU places the city on a non -binding course to eventually acquire the property that is the subject of the MOU (the "Property"); and WHEREAS, the city's primary interest in the Property is to improve the environmental functions and values of the Edmonds Marsh and to pursue associated long-term habitat restoration; and WHEREAS, the City of Edmonds recognizes that acquiring the property is one of two or more ways to achieve the City's primary interest in the property as detailed above; and WHEREAS, the Department of Ecology is preparing to hold a 45-day public comment period and public meeting for the Property by the end of 2023 with a target of late summer; and WHEREAS, the city may soon find it appropriate to engage consultants to advise the City on how best to inform and/or influence the forthcoming Department of Ecology process and/or to perform other due diligence and planning activities related to the Property; and WHEREAS, the city is still in the early stages of evaluating the various risks and opportunities related to possible acquisition of the Property; and WHEREAS, the city council has expressed a desire to evaluate a spending plan for implementation of these MOU-related activities; and WHEREAS, the council president and mayor have discussed the mutual benefits of the council's deliberation and action on a spending plan for implementation of these MOU-related activities; now therefore, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The city council wants to establish a collaboration with the administration to develop a budget before the administration spends additional resources related to the MOU or the Property Packet Pg. 270 8.8.b Section 2. The city council requests that the administration provide the city council with an outline of the types and approximate amounts of expenses that might be incurred in the 2023 fiscal year to further the city's interests with respect to the MOU and the Property. Section 3. The city council requests that the mayor's proposed budget for 2024 contain a section that details the types and approximate amounts of expenses that might be incurred in 2024 to further the city's interests with respect to the MOU and the Property. RESOLVED this day of June, 2023. CITY OF EDMONDS MAYOR, MIKE NELSON ATTEST: CITY CLERK, SCOTT PASSEY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: RESOLUTION NO. Packet Pg. 271 9.1 City Council Agenda Item Meeting Date: 06/27/2023 Highway 99 Landmark Site Staff Lead: Susan McLaughlin Department: Planning & Development Preparer: Susan McLaughlin Background/History Planning efforts over the last two decades in the Highway 99 area have resulted in infrastructure investments, new multi -family developments and a satellite City Hall office. Whilst this is good progress, some of the most critical needs for neighborhoods in the Highway 99 area are still not met, notably open space and community gathering places (community center/recreation). City staff have been actively looking for properties to purchase to meet these needs; we are pleased to bring forward an exciting site with significant potential to meet a multitude of community needs. The Highway 99 Landmark Site is unique because of its size at 10.55 acres under a single landowner. It is comprised on 9 parcels with access from Highway 99 and 240th St SW with close proximity to the interurban trail, Swift bus rapid transit service and the upcoming light rail station in Mountlake Terrace. Staff Recommendation Council authorize the Mayor to execute the Option Agreement between Eastern Investment Corporation and Southeast 888 Investment LLC and the City of Edmonds for the 10.55 acres as described in the attached agreement. Narrative The proposed Option Agreement provides the opportunity for the City of Edmonds to have the landowner hold the property for up to 18 months before executing a Purchase and Sale Agreement (PSA). This timeframe will enable the city to develop the community's vision for the property, to investigate the possibility of funding options and partnerships, to complete the due diligence work and finalize the PSA. The basic components of a PSA are included in the Option Agreement as an attachment. There are two basic timing components of the Option agreement divided into the first six months and the next twelve months. If the city decides not to proceed with the agreement within the first six months, the $100,000 fee is refundable, after that, the funds stay with the landowner. During the first six months of the agreement, the city and landowner refine the PSA. At the end of those six months, the PSA is finalized with review and approval of the city council, but not required to be executed with the landowner. The city then has the next 12 months to execute the PSA with the approval of the city council, which then, and only then, commits the city to purchasing the property. The funding of the $100,000 is available as allocated in the park land acquisition program. Packet Pg. 272 9.1 Attachments: Burlington Property Option Agreement 2023.06.20 Landmark site graphic Landmark Site Project Timeline V5 Packet Pg. 273 9.1.a OPTION AGREEMENT between Eastern Investment Corporation and Southeast 888 Investment LLC and CITY OF EDMONDS, WASHINGTON dated as of July 1, 2023 Packet Pg. 274 9.1.a OPTION AGREEMENT This OPTION AGREEMENT (this "Agreement") dated as of the 1 st day of July, 2023 (the "Effective Date") is entered into between EASTERN INVESTMENT CORPORATION, a Washington Corporation and SOUTHEAST 888 INVESTMENT LLC, a Washington Limited Liability Company (collectively "Optionor"), and CITY OF EDMONDS, a Washington municipal corporation ("Optionee"). WHEREAS, Optionor is the owner of that certain real property located at 24111 SR 99, Edmonds, in SNOHOMISH COUNTY, WASHINGTON, which is more particularly described in Exhibit A attached hereto (the "Property"); and WHEREAS, Optionor wishes to grant to Optionee, and Optionee wishes to obtain from Optionor, an irrevocable and exclusive option to purchase the Property, subject to the terms and conditions set forth below. NOW, THEREFORE, in consideration of the Option Payment (defined in Section 3 below) and the other mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Grant of Option. Subject to Optionee's timely payment of the Option Payment (defined in Section 3 below), Optionor hereby grants to Optionee an exclusive and irrevocable option to purchase the Property on the terms and conditions set out in this Agreement (the "Option"). 2. Option Term. The term of the Option (the "Option Term") shall commence on the Effective Date and automatically expire at 11:59 pm PACIFIC TIME December 31, 2024 (the "Option Termination Date"), unless duly extended, exercised, or sooner terminated as provided for in this Agreement. 3. Option Payment. (a) The Option is granted in consideration of Optionee's payment to Optionor, concurrently with the execution of this Agreement, in the amount of ONE HUNDRED THOUSAND DOLLARS $100,000 (the "Option Payment"), the receipt of which is hereby acknowledged. (b) Optionee acknowledges and agrees that the Option Payment constitutes consideration to Optionor for Optionor's agreement to: (i) enter into this Agreement with Optionee; (ii) not advertise, market the Property for sale, and/or sell the Property to another purchaser while this Agreement is in effect; and (iii) sell the Property to Optionee on the terms and conditions and for the Purchase Price (as defined in the Purchase Agreement (defined below in Section 4)), provided that Optionee has exercised the Option in the manner provided in Section 4 below. The Option Payment shall be nonrefundable to Optionee. 4. Exercise of Option. At any time during the Option Term, Optionee may exercise the Option by timely sending Optionor a written notice of Optionee's intention to exercise the 2 Packet Pg. 275 9.1.a Option (the "Exercise Notice") accompanied by three (3) executed copies of the purchase and sale agreement certain material terms of which are attached as Exhibit B (the "Purchase Agreement"). Optionor shall promptly execute the Purchase Agreement and return two (2) fully executed originals to Optionee. If Optionee does not timely exercise the Option in the manner described herein on or before the Option Termination Date, the Option will automatically terminate. Thereafter, neither party shall have any further obligations hereunder except for those obligations that expressly survive termination of this Agreement. (a) Within ONE HUNDRED EIGHTY (180) days of the Effective Date, Exhibit B hereto shall be converted into an approved Purchase Agreement consistent with the material terms and subject to approval by both Optionor and Optionee in their sole discretion. Once the parties agree upon the form of the complete Purchase Agreement, that agreement shall be finalized by the parties executing an addendum to this Agreement which will have the effect of replacing Exhibit B with the complete Purchase Agreement. If the parties have not executed such an addendum, for any reason, within ONE HUNDRED EIGHTY (180) days of the Effective Date, Optionor shall return the entire Option Payment to Optionee and this Agreement shall terminate. Failure of the parties to execute the above addendum in a timely manner renders the Option Payment refundable notwithstanding any other language to the contrary in this Agreement. 5. Default by Optionor. If Optionor fails to perform any of its obligations or is otherwise in default hereunder, Optionee shall have the right to terminate this Agreement, obtain a refund of the Option Payment paid by Optionee, and/or to seek such other relief Optionee may have at law or in equity, including, without limitation, seeking injunctive relief to prevent a sale of the Property to a party other than Optionee and the filing of an action for specific performance. Default by Optionor renders the Option Payment refundable notwithstanding any other language to the contrary in this Agreement. 6. Notices. Unless specifically stated otherwise in this Agreement, all notices, waivers, and demands required or permitted hereunder shall be in writing and delivered to the addresses set forth below, by one of the following methods: (a) hand delivery, whereby delivery is deemed to have occurred at the time of delivery; (b) a nationally recognized overnight courier company, whereby delivery is deemed to have occurred the business day following deposit with the courier; (c) registered United States mail, signature required and postage -prepaid, whereby delivery is deemed to have occurred on the third business day following deposit with the United States Postal Service; or (d) electronic transmission (email) provided that the transmission is completed no later than 11:59 p.m. Pacific time on a business day and the original also is sent via United States Mail, whereby delivery is deemed to have occurred at the end of the business day on which electronic transmission is completed. To Optionor: Name: Robert Siew Address: 15310 SE 43rd Place, Bellevue, WA 98006 Telephone: 425-643 -3 8 3 8 Email: Robsiew@comcast.net Packet Pg. 276 9.1.a With a copy to: Name: Andrew Goodrich Address:601 Union Street, Suite 2600 Seattle, WA 98101-4000 Telephone: 206.654.2428 Facsimile: 206.340.2563 Email: Goodrich@lasher.com To Optionee: Name: Angie Feser City of Edmonds Parks, Recreation & Human Services Director 700 Main Street Edmonds WA 98026 Telephone: 425-771-025 6 Email: angie.feser@edmondswa.gov with a copy to: Name: Jeff Taraday Lighthouse Law Group PLLC Address: 600 Stewart Street, Suite 400 Seattle, WA 9101 Telephone: 206-273 -7440 Email: Jeff@lighthouselawgroup.com 0 as in M E 13 c J 3 a� Packet Pg. 277 9.1.a Any party to this Agreement may change its address for purposes of this Section 6 by giving written notice as provided in this Section 6. All notices and demands delivered by a party's attorney on a party's behalf shall be deemed to have been delivered by said parry. Notices shall be valid only if served in the manner provided for in this Section 6. 7. Optionee's Right to Inspect. (a) In conducting inspections related to due diligence or feasibility or otherwise accessing the Property, Optionee shall at all times comply with all laws and regulations of all applicable governmental authorities. In connection with such inspections, neither Optionee nor any of Optionee's representatives shall: (i) unreasonably interfere with or permit unreasonable interference with any person occupying or providing service at the Property; or (ii) unreasonably interfere with the business of Optionor (or any of its tenants) conducted at the Property or unreasonably disturb the use or occupancy of any occupant of the Property. (b) Optionee shall schedule and coordinate all inspections or other access thereto with Optionor and shall give Optionor at least FIVE (5) business days' prior notice thereof. Optionor shall be entitled to have a representative present at all times during each such inspection or other access. Optionor shall allow the Optionee's representatives unlimited access to the Property and to other information pertaining thereto in the possession or within the control of Optionor for the purpose of the inspections and any due diligence undertaken by the Optionee. (c) In the event of termination of the Option, Optionee shall provide to Optionor at no cost, electronic copies of any reports, studies or written conclusions made by Optionee during the Option Period. (d) Optionee shall not perform any invasive testing including environmental inspections beyond a Phase 1 assessment or contact the tenants without obtaining Optionor's prior written consent. Optionee shall restore the Property and all improvements to substantially the same condition they were in prior to the inspection. 8. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same document. 9. Time of Essence. Optionor and Optionee hereby acknowledge and agree that time is strictly of the essence with respect to each and every term, condition, obligation, and provision hereof and that failure to timely perform any of the terms, conditions, obligations, or provisions hereof by either parry shall constitute a material breach of and a non -curable (but waivable) default under this Agreement by the party so failing to perform. 10. Entire Agreement; No Representations. This Agreement constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter. This Agreement is entered into after full 5 Packet Pg. 278 9.1.a investigation by each party and neither party is relying upon any statement or representation made by the other parry not set forth in this Agreement. 11. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. 12. Attorney Fees. If either Optionor or Optionee institutes suit against the other concerning this Agreement, the prevailing party is entitled to reasonable attorney fees and costs. [SIGNATURE PAGE FOLLOWS] 3• Packet Pg. 279 9.1.a IN WITNESS WHEREOF, the Optionor and Optionee hereto have executed this Agreement as of the Effective Date. OPTIONOR: EASTERN INVESTMENT CORPORATION, a washington corporation Lo Name: Title: SOUTHEAST 888 INVESTMENT LLC, a Washington Limited Liability Company By: Name: Title: OPTIONEE: CITY OF EDMONDS, a Washington municipal corporation Lo Name: Mike Nelson Title: Mayor 7 a in M E 13 c J 3 a� Packet Pg. 280 9.1.a EXHIBIT "A" Legal Description ForAPN/Parcel ID(s): 004911-000-003-02, 004911-000-003-03, 004911-000-003-04, 004911-000-003-05, 004911-000-001-05, 004911-000-001-06, 004911-000-001-07, 004911-000-001-10, 004911-000-003-06. 004911-000-003-07 and 004911-000-003-08 Parcel A: A portion of Tracts 1, 2, and 3, Lake McAleer Five Acre Tracts, according to the plat thereof, recorded in Volume 5 of Plats, page 48, records of Snohomish County, Washington, described as follows: m Beginning at the Southeast corner of above said Tract 3; N Thence North 0045'50" East along the East line of said Tract 3, 634.13 feet to a point 10 feet South of the Northeast corner of lot 3; E Thence North 88029'56" West parallel to the North line of said plat, 201.64 feet; Thence South 0°43'57" West parallel to the West line of above said Tract 3, 176.96 feet to a point 135.00 feet North of the South line of North one-half of said Tract 3; rn Thence North 88°28'07" West parallel to said South line 130.00 feet to the East line of above said Tract 2; �% Thence North 0043'57" East along said East line 176.89 feet to a point 10.00 feet South of the Northeast corner of said 3 Tract 2; LM Thence North 88029'56" West parallel to the North line of above said Plat 130.00 feet; Thence South 0°43'57" West parallel to the East line of said Tract 2, 125.00 feet; Thence North 88029'56" West parallel to the North line of said Plat 218.43 feet to an intersection with a curve on the N Easterly right of way line of Highway 99 (center point which bears South 64°1TOY East a distance of 2814.79 feet); 0 Thence Southwesterly along the arc of said curve to the Left, consuming a central angle of 9056'56" a distance of 488.72 N feet; o Thence South 74'13'56" East on a radial line of said curve, a distance of 10.00 feet to an intersection with a curve on the cm Easterly right of way line of Highway 99 (center point which bears South 74'13'56" East a distance of 2804.79 feet); Thence Southwesterly along the arc of said curve to the left, consuming a central angle of 0056'39" a distance of 46.22 aEi feet to the South line of Tract 1 in above said plat; Thence South 88'26'18" East along the South line of Tracts 1, 2, 3 in above said Plat, a distance of 848.72 feet to the true Q point of beginning; c Except those portions acquired by or conveyed to the State of Washington for SR 104. Situate in the County of Snohomish, State of Washington. Parcel B: That part of the North 135 feet of Tracts 1 and 2, Lake McAleer Five Acre Tracts, according to the plat thereof, recorded in Volume 5 of Plats, page 48, records of Snohomish County, Washington, lying Easterly of State Road No. 1 (U.S. Highway 99); Except the East 130 feet; And except the North 10 feet thereof conveyed to Snohomish County for road by deed recorded under Auditor's File Number 693550; And except that portion conveyed to the State of Washington for Primary State Highway No. 1 by deed recorded under Auditor's File Number 1646398. Packet Pg. 281 9.1.a EXHIBIT "A" Legal Description Situate in the County of Snohomish, State of Washington. Parcel C: That portion of Tracts 1 and 2, Lake McAleer Five Acre Tracts, according to the plat thereof, recorded in Volume 5 of Plats, page 48, records of Snohomish County, Washington, described as follows: Beginning at the intersection of the Southeasterly right of way line of State Highway Route 99, as said right of way line existed prior to March 12, 1970, with the South line of the North 135 feet, as measured parallel with the East line of said a, tract 1; in Thence Westerly along said South line to a point which is 51 feet Southeasterly, when measured at right angles from the R L line survey of State Highway Route 104; Thence Northeasterly parallel with said R line survey to a point opposite Highway Engineer's station R 113+81.36; Thence along a curve to the right having a radius of 40 feet to a point on the South line of 240th St. S.W. opposite Highway Engineer's Station 240th 10+64.85 and 30 feet Southerly therefrom; rn Thence Easterly along said South line to the Southeasterly right of way line of State Highway Route 99; Thence Southwesterly along said right of way line to the point of beginning. 3 t Situate in the County of Snohomish, State of Washington. aM x Parcel D: o That portion of Tract 1, Lake McAleer Five Acre Tracts, according to the plat thereof, recorded in Volume 5 of Plats, page 48, records of Snohomish County, Washington, described as follows: Beginning at a point opposite Highway Engineer's Station (hereinafter referred to as H.E.S.) 1 188+66 on the I line survey of SR 104, 236th Street S.W. to Meridian Avenue, and 365 feet Northeasterly therefrom, said point also being on the Southeasterly right of way line of SR 99, as said right of way existed prior to March 12, 1970; Thence Northwesterly to a point opposite H.E.S. 109+65 on the R line survey of said highway and 42 feet Southeasterly therefrom; Thence Northeasterly in a straight line to a point opposite H.E.S. R 109+82 and 42 feet Southeasterly therefrom; Thence Northeasterly in a straight line to a point opposite H.E.S. R 110+00 and 42 feet Southeasterly therefrom; Thence Northeasterly in a straight line to a point opposite H.E.S. R 110+50 and 41 feet Southeasterly therefrom; Thence Northeasterly in a straight line to a point opposite H.E.S. R 111+00 and 41 feet Southeasterly therefrom; Thence Northeasterly in a straight line to a point opposite H.E.S. R 111+50 and 41 feet Southeasterly therefrom; Thence Northeasterly in a straight line to a point opposite H.E.S. R 112+00 and 41 feet Southeasterly therefrom; Thence Northeasterly in a straight line to a point opposite H.E.S. R 112+50 and 41 feet Southeasterly therefrom; Thence Northeasterly in a straight line to a point on the South line of the North 135 feet, as measured parallel with the East line, of said tract, which point is 41 feet Southeasterly, when measured at right angles, from the R line of said highway; Thence Easterly, along said South line, to the Southeasterly right of way line of SR 99, as said right of way line existed prior to March 12, 1970; Thence Southwesterly, along said right of way line, to the point of beginning. Situate in the County of Snohomish, State of Washington. Parcel 004911-000-003-02; Parcel 004911-000-003-03; Parcel 004911-000-003-04; Parcel 004911-000-003-05; Parcel 004911-000-001-05; Parcel 004911-000-001-06; Parcel 004911-000-001-07; Parcel 004911-000-001-10; Parcel 004911-000-003-06; Parcel 004911-000-003-07; Parcel 004911-000-003-08 Packet Pg. 282 9.1.a EXHIBIT A LEGAL DESCRIPTION Packet Pg. 283 9.1.a EXHIBIT B PURCHASE AGREEMENT — CERTAIN MATERIAL TERMS The following are certain material terms of the purchase and sale agreement ("Purchase Agreement") as described in Section 4 of this Agreement: 1. Subject Property: The Property shall be the same Property that is the subject of this Agreement. 2. Purchase Price: The Purchase Price shall be THIRTY-SEVEN MILLION DOLLARS AND ZERO CENTS ($37,000,000.00) all cash at closing. The Option Payment shall not count toward the Purchase Price. 3. Earnest Money Deposit: The Earnest Money Deposit shall be: a. ONE MILLION DOLLARS AND ZERO CENTS ($1,000,000.00); b. credited toward the Purchase Price; c. deposited with the escrow agent within FOURTEEN (14) days of mutual execution of the Purchase Agreement; d. non-refundable as to FIVE HUNDRED THOUSAND DOLLARS ($500,000.) upon release of title contingency (see 4.c, below); e. non-refundable as to the remaining FIVE HUNDRED THOUSAND DOLLARS ($500,000.) upon release of the due diligence / feasibility contingency (see 4.b, below). 4. Contingencies: The Purchase Agreement shall be subject to the following contingencies: a. A financing contingency, which shall be released no later than ONE HUNDRED AND TWENTY(120) days after mutual execution of the Purchase Agreement; b. A due diligence / feasibility contingency, which shall be released no later than ONE HUNDRED AND TWENTY (120) days after mutual execution of the Purchase Agreement; c. An acceptable title contingency, which shall be released no later than SIXTY (60) days after mutual execution of the Purchase Agreement. 5. Closing: The closing of the transaction shall occur on or before June 30, 2025. 6. Title: Title shall be conveyed by statutory warranty deed, subject to any exceptions shown on a survey provided by Optionee. The title company shall be Chicago Title Insurance Company in Everett, WA. 7. Leases: Seller shall not renew or enter into any leases in a manner that would extend the lease expiration past the closing date, provided, however, that Optionee understands that there is a current lease which terminates on Jan. 31, 2029. 8. Brokers: Seller represents and warrants to Purchaser that it dealt with no broker in connection with, nor has any broker had any part in bringing about, this transaction and that no commissions are owed by either party. Purchaser represents and warrants to Seller that the broker it used to facilitate this transaction was engaged by the Purchaser on a Packet Pg. 284 9.1.a consulting basis and that no commission is owed to that broker in connection with this transaction. 9. Excise Tax: Seller shall pay all excises taxes associated with the transaction. 10. Assignment: Purchaser may assign part or all of its interest in the Purchase Agreement without the prior written consent of the Seller, provided: (a) Purchaser gives Seller written notice of such assignment within THIRTY (30) days after such assignment; and (b) Purchaser's assignee executes an instrument in form substantially the same as that attached to the Purchase Agreement agreeing to be bound by all the terms and conditions of the Purchase Agreement and agreeing that at least seventy-five percent (75%) of the acreage of the Property will be used for public purposes. 11. AS IS. The sale shall be "as is". 12. 1031 Exchange. If Optionor intends for this transacton to be a part of a Section 1031 like -kind exchange, then Optionee agrees to cooperate in the completion of the exchange so long as they incur no additional liability or expense. 10 Packet Pg. 285 TIMELINE FOR HIGHWAY 99 LANDMARK SITE OPTION TO PURCHASE 9.1.c This timeline covers project tasks to get the City from approval of the option to purchase to the closing of the purchase and sale agreement Project Project Charter Initiation Approve option to Purchase Project Contracting plan Management Communications plan Te� am establishment Develop Purchase and Sale Agreement Master Plan Develop financing options Negotiate PSA details Title report Geotech investigation Environmental review Contracting Establish program elements of site Conceptual design Schematic design Prepare Tax Increment Financing (TIF) strategy Bonds Public/private options Implementation Ongoing project management Planning (2024 Public/Private structure and beyond) Team funding and budget amendments Council Touchpoints * Close up to six months after Jun O Option Approval O LIPublic Design Works OProject Charter O TIF Analysis —J U) [Select Consultant U) .19 E Kick off Master Plan a� PSA Exercised f° t a� O Submit TIF Analysis LO m n TIF Outreach & Briefi ' U — E Select Alternativ c L a d in O TIF Ordinance App E c �a J r C d E O [Approve Concept � D Q OFinal Deliverables O Financing Plan Appro I O PSA Approved* Packet Pg. 287 9.2 City Council Agenda Item Meeting Date: 06/27/2023 Clean Buildings Act - Frances Anderson Center Investment Grade Audit Staff Lead: Oscar Anti Ilon Department: Public Works & Utilities Preparer: Royce Napolitino Background/History The Frances Anderson Center built in 1928 and renovated in 1947 and 1952, the building was used as a grade school until the city purchased the building. The building has been owned and operated by the city since the 1980's. Currently the building is home to the Parks, Recreation, and Human Services offices, as well as several community organizations, Main St. Kids Daycare, and Edmonds Montessori, annual festivals and recreational programming. In 2019 Washington State enacted the Clean Buildings Act which requires all buildings of a certain square footage to increase energy efficiency, measure and verify performance moving forward. In 2022 the Clean Building Act was updated to include buildings with 50,000 square feet and above. Verification is required prior to forced compliance in 2028. Non -compliant facilities will be fined monthly until verification of compliance is achieve. Forwarded for Presentation to City Council by the PPW Committee Meeting June 13, 2023. Staff Recommendation Accept the proposal for an Investment Grade Audit to identify and analyze performance -based contracting measures at Frances Anderson Center. Narrative The proposed Investment Grade Audit will be conducted to identify and propose HVAC updates to bring the Frances Anderson Center in to measured compliance with the Washington State Clean Buildings Act. The IGA will address the focus of the Clean Buildings Act which is to reduce pollution from burning of fossil fuels. Our proposal will deliver cost-effective Facility Improvement Measures, equipment recommendations, energy compliance strategy, projected energy/cost savings, maximum allowable project expense and other data for creation of a project. This project would raise building resilience to climate change, eliminate fossil fuel emissions, all while bringing the building into compliance with the mandated standards in the Clean Buildings Act. Attachments: City of Edmonds - FAC HVAC IGA Proposal_03-29-23 Packet Pg. 288 9.2.a try ife Of Your Building March 29, 2023 To: Thom Sullivan, Facilities Manager, City of Edmonds Cc: Novella Randall - Energy Engineer; Department of Enterprise Services From: Andrew Williamson - Municipal Business Manager; McKinstry Project: Frances Anderson Center (FAC) HVAC Upgrade Subject: Investment Grade Audit Proposal Dear Mr. Sullivan: The Frances Anderson Center is a pivotal recreation and cultural facility in the City of Edmonds. It also has a historical significance. The City is interested in upgrading the building's HVAC system to provide improved occupant comfort and experience. The City would like this upgrade to enhance the energy efficiency and operation of the City buildings through a performance -based contract with McKinstry. This proposal will provide the guidelines for which McKinstry will provide the following tasks: 1. Conduct an Investment Grade Audit of the HVAC system at the Frances Anderson Center (700 Main St, Edmonds, WA 98020) 2. Develop a comprehensive Energy Services Proposal for upgrading the HVAC System. INVESTMENT GRADE AUDIT (IGA): The audit will be a collaborative effort with City of Edmonds and the Washington State Department of Enterprise Services (DES). It will identify and analyze performance -based contracting measures along with their associated savings, costs, and potential for utility rebates and grants. The final deliverable of the IGA will be an Energy Services Proposal (ESP) for implementation of viable initiatives with associated energy cost savings. The following scope of work is included: ✓ Preliminary evaluation of the building's existing electrical infrastructure's available capacity. ✓ Identify and document existing HVAC system and its operation. ✓ Code review. ✓ Preliminary Load Analysis to establish new system's capacity and system alternatives. ✓ Preliminary system selection, zoning and sizing. ✓ Evaluation of Clean Building Performance Standard compliance for the proposed system. ✓ Preliminary Structural review to confirm installation of new system components. ✓ Review existing good faith surveys, identify and communicate any data gaps to the City ✓ Initiate discussion with local AHJ for clarifications etc as necessary. REQUESTED INFORMATION: For effective execution of this proposal we ask that the City of Edmonds provide access to the following: ✓ Good Faith Survey for the building in scope. ✓ Historical utility bills for the last 60 months. ✓ All mechanical, electrical, architectural, structural and building controls drawings. ✓ Access to Building Automation System (BAS). ✓ All operational and maintenance manuals, balancing records, & specifications. ✓ Operational records related to the cost of maintaining specific equipment. ✓ Information with regards to any on -going maintenance contracts. ✓ Access to individuals that have relevant information pertainingto the day-to-day operation of energy using systems on site. 5005 Third Avenue South * Seattle, WA * 98124-0567 * 206.762.3311 * Fax 206.762.2624 Packet Pg. 289 9.2.a try ife Of Your Building Page 2 TIMELINEAND MILESTONES: McKinstry will initiate this scope of work immediately upon acceptance of this proposal and establishment of a professional services agreement based on McKinstry's existing master agreement with the Department of Enterprise Services (DES). Formal progress review meetings will be conducted regularly throughout the study phase. During these review meetings, McKinstry will recommend measures based on the analysis, while the City of Edmonds and DES will provide final direction regarding recommended measures. The goal of these review meetings is to focus engineering efforts, budgeting, and savings assessment on those solutions that possess a high probability for implementation. McKinstry will target completion of the IGA within 105 calendar days of a notice to proceed. CRITERIA FOR IMPLEMENTATION: It is the City of Edmonds's intent that McKinstry will implement all approved projects that meet the following criteria. ✓ Facility Improvement Measures shall be life cycle cost effective as an aggregate using the Office of Financial Management (OFM) life cycle cost model tool. ✓ Not more than 90% of the energy cost savings may be used to help repay a loan, if applicable. ✓ McKinstry will work with the clients' utilities and other entities to secure conservation grant funding or low interest loans for applicable measures. ✓ Client may list favorable subs and equipment Investment Grade Audit Fee: The City of Edmonds will reimburse McKinstry for a lump sum of $92,500 for this scope of work. All fees assessed under this proposal will be included in the final project implementation costs. In the event that McKinstry is unable to recommend projects that meet the criteria above, the City of Edmonds has no financial obligation to McKinstry. However, if the recommendations meet or exceed the Criteria for Implementation and the City of Edmonds chooses not to enter into an agreement with McKinstry to install the projects, the City of Edmonds will reimburse McKinstry for the Investment Grade Audit fee. All associated information, including deliverables, will become the property of the City of Edmonds upon final receipt of payment. Deliverables are listed in attachment (A). We look forward to working with the City of Edmonds and DES on a successful project. Please call should you have any questions. Shelby Sawyers, McKinstry Energy Services Account Executive 206.658.4389 5005 Third Avenue South * Seattle, WA * 98124-0567 * 206.762.3311 * Fax 206.762.2624 Packet Pg. 290 9.2.a try ife Of Your Building Attachment A Investment Grade Audit Deliverables The Investment Grade Audit for the City of Edmonds Frances Anderson Center will include the following elements: Page 3 1. A description of the systems which shall receive new Equipment and Services; 2. The cost-effective Facility Improvement Measures (FIMs) to be installed or caused to be installed by McKinstry and a description of the FIMs analyzed but disqualified under the cost effectiveness criteria; 3. A description of the services that McKinstry will perform or cause to be performed on or in the infrastructure, including but not limited to engineering, construction management, the operations and maintenance procedures for use on Equipment, training for personnel, warranty service provided, and equipment maintenance provided; 4. The Maximum Allowable Project Cost, itemized in detail, which may be amended to represent actual costs; 5. Recommendations for replacement of existing equipment, along with recommendations for improvements to existing equipment and operating conditions; 6. The service standards appropriate for the infrastructure; 7. The baseline energy consumption, including the data, methodology and variables used to compute the baseline, and the baseline calendar period which shall not be less than twelve (12) months; 8. The estimated energy savings and energy cost savings that are expected to result from the installation of the Equipment and from the Services, and an explanation of the method used to make the estimate; 9. The method by which Energy Savings and Energy Cost Savings will be calculated during the term of the Energy Services Agreement; 10. A description of how project financing (if allowed by the client) will be completed; 11. A description of how the Energy Savings will be guaranteed by McKinstry; 12. A description of how McKinstry proposes to be compensated; 13. The term of the Energy Services Authorization; 14. The Termination Value for each year during the term of the Energy Services Authorization; 15. The schedule for project completion; 16. The nature and extent of the Work and equipment that ESCO anticipates it will receive from other firms under subcontract. 5005 Third Avenue South * Seattle, WA * 98124-0567 * 206.762.3311 * Fax 206.762.2624 Packet Pg. 291 9.3 City Council Agenda Item Meeting Date: 06/27/2023 Award Construction Contract for Citywide Bicycle Improvements and Elm Way Walkway Projects Staff Lead: Rob English Department: Engineering Preparer: Emiko Rodarte Background/History On April 11, 2023, staff presented this item to the Parks and Public Works Committee and it was forwarded to a future City Council meeting for possible approval. On May 2, 2023, the City Council rejected all construction bids for the project. On May 5, 2023, the City readvertised the project for construction bids. On June 13, 2023, staff presented this item to the Parks and Public Works Committtee and it was forwarded to the June 27, 2023 City Council meeting for possible approval. Staff Recommendation Award construction contract to Laser Underground & Earthworks, Inc. in the amount of $2,675,267 and authorize a management reserve of $267,527 for the Citywide Bicycle Improvements and Elm Way Walkway Projects. Narrative On May 25, 2023, the City received five construction bids for the Citywide Bicycle Improvements and Elm Way Walkway Projects. The bids ranged from a low of $2,675,267 submitted by Laser Underground & Earthworks, Inc. to a high of $3,185,070 submitted by Colacurcio Brothers Construction Company. The Engineer's Estimate was $1,997,231.49. Attachment 1 is a summary of the bid results. The Citywide Bicycle Improvements project will install bicycle facilities - including both separate bicycle lanes and sharrow pavement markings - on approximately 7.5 lane -miles of City and County streets. The project will also install associated improvements to pedestrian and signalization facilities. The Elm Way Walkway project will install approximately 700 linear feet of sidewalk along the south side of Elm Way from 8t" Ave to 91" Ave. The project will also install associated drainage and signalization improvements. The proposed construction budget is $3,357,035. The construction budget includes the contract award amount of $2,675,267, construction management of $401,291, management reserve of $267,527 and a 1% arts fund contribution of $12,950. Refer to slide 7 of Attachment 2. Staff will review the proposed Packet Pg. 292 9.3 construction budget and funding, including the amount and source of additional funds needed to complete the construction phase during the staff presentation. Refer to slide 8 of Attachment 2. Attachments: Attachment 1- Bid Summary Attachment 2 - Presentation Attachment 3 - Area Map Packet Pg. 293 9.3.a CITYWIDE BICYCLE IMPROVEMENTS AND ELM WAY WALKWAY PROJECTS BID TABS CITY OF EDMONDS 5/25/2023 2:15 PM BIDDER SCHEDULE TOTAL A B C D Engineer $ 1,034,747.75 $ 342,570.00 $ 412,690.53 $ 207,223.21 $ 1,997,231.4 Laser Underground $ 1,389,045.00 $ 536,305.00 $ 446,817.00 $ 303,100.00 $ 2,675,267.0 Kamins Construction $ 1,463,863.73 $ 542,399.50 $ 365,727.64 $ 310,130.55 $ 2,682,121.4 Road Construction NW $ 1,527,655.00 $ 527,800.00 $ 385,860.00 $ 325,697.00 $ 2,767,012.0 A-1 Landscaping $ 1,532,500.50 $ 674,303.00 $ 442,383.45 $ 486,708.00 $ 3,135,894.9 Colacurcio Brothers $ 1,736,248.00 $ 680,180.00 $ 489,394.00 $ 279,248.00 $ 3,185,070.0 0 3 Q Packet Pg. 294 jA ti�11 • w� Inc. 1890 i i I i RWIKE.LANE �' to �F Citywide Bicycle Improvements & Elm Way Walkway Projects June 27, 2023 A rK. MDE BICYC t Overview M; r •�j ALIGNMENT A2: BOWDOIN WAY FROM 9TH AVE. S TO 84TH AVE. W 4e� r ALIGNMENT Ai: I00TH AVE. W-r-" ` r FROM 244TH ST. SW/ 205TH f ST. SW TO WALNUT ST. lnMayb•wAY a:l6" " (ALIGNMENT A4: SHARROWS / ALONG 80TH AVE, W FROM 228TH ST. SW TO 220TH ST. SW r � c►� ALIGNMENT A3: 228TH-"" ST. SW FROM 80TH AVE. W. TO 78TH AVE. W 4p Packet Pg. 296 CITYWIDE BICYCLE IMPROVEMENT • Bicycle Lanes and Sharrow Pavement Markings (-7.5 lane miles) • 15 new ADA compliant pedestrian ramps 3 Rectangular Rapid Flashing Beacons (RRFB) Systems 0 9th Ave/Pine St w 0 100th Ave/2241h St. o Bowdoin Way/Pioneer Way Pedestrian safety modifications at: o Yost Park Entrance o Woodway Campus Entrance Traffic Signal modifications at 100th Ave/220th St and 1001h Ave/SR104 Pavement widening on 228th St (80th Ave to 78th Ave) BIKE ,LANE i►_ a A r] m U V m L. iii 3 - _ m i t •. • �5 4. - m Packet Pg. 298 ELM WAY WALKWAY 81H Ave to 9th Ave 700 feet of new curb, gutter and sidewalk (south side) • 6 new ADA compliant pedestrian ramps OV Stormwater Improvements (Detention system, piping and catch basins) Pavement striping and signing n'�'✓ h1 BID RESULTS Contractor Bid Results Amount Laser Underground &Earthworks $4675126- Packet Pg. Ov E "1110 ti CONSTRUCTION BUDGET 11-/ Inc. 189 Item Citywide Bikelane Elm Way Walkway Total MMMMIPacket Pg. 301 Construction Funding Funding Source Citywide Bikelane Elm Way Walkway Total 76t" Overlay Savings (125/126) $189,255 $189,; 2023 Overlay (125/126) $62,000 $62,( 2023 Storm Projects (422) $43,522 $43,1 Added Funds (126 REET) $299,230 $27,641 $326,1 nF E,�f1n�. Packet Pg. 302 Staff Recommendation • Award Construction Contract to Laser UndergrOL & Earthworks, Inc. for $2,675,267. • Authorize a 10% Management Reserve of $2671527. nF Packet Pg. 303 -� CITYWIDE BICYCLE IMPROVEMENTS AND HELM WAY WALKWAY PROJECTS I 9.3.c I MAIN.ST P.INE.ST Elm Way: 8th to 100th Installina Sidewalk WESTGATE — E4--- YOST PARK Walnut and Bowdoin 9th to 5 Corners Addina Bike Lanes 100th and 9th: 244th to Walnut Addina Bike Lar I- I I I— — 524 / 196TH:ST SW y (Ai 5 CORNERS _it rW a I- 220TH_ST.SW. �I ESPE,RANCE, 228th: 78th to 80th Widening & Adding Bike Lanes )th: 228th to 220t harrows Onlv M M M L a M a E r a r E r r a _FIRDALEi VILLAGE Packet Pg. 304 9.4 City Council Agenda Item Meeting Date: 06/27/2023 Resolution Increasing Vehicle License Fee - Transportation Benefit District Staff Lead: Oscar Anti Ilon Department: Public Works & Utilities Preparer: Royce Napolitino Background/History The Transportation Benefit District (TBD) was adopted in February of 2009. While the costs of maintenance and preservation of the streets have gone up significantly, the fee has remained the same since 2009. In that time, the Street Maintenance budget has increased by approximately 60%, directly impacting the general fund. While the TBD fees remain the same, city infrastructure needs continue to increase with more traffic control devices and more maintenance required to deteriorating infrastructure. This year, the recommended investment for the pavement preservation program was $2.8M while the city was only able to fund $1M. This shortfall will significantly increase the cost to repair or restore our roadway network in the future. Transportation Benefit District revenue is one of few sources available to fund ongoing maintenance and repair activities. Per chapter 3.65.030 of the Edmonds Municipal Code the council may authorize a motor vehicle license fee as follows: 1. A vehicle fee of up to $20.00 per vehicle as provided for by RCW 82.80.140; 2. A vehicle fee of up to $40.00 as provided in RCW 82.80.140 if a vehicle fee of $20.00 has been imposed for at least 24 months; or 3. A vehicle fee of up to $50.00 as provided in RCW 82.80.140 if a vehicle fee of $40.00 has been imposed for at least 24 months and the city has met all of the requirements of RCW 36.73.06(6). Staff Recommendation Approve resolution increasing transportation benefit district vehicle fees from $20 to $40. Narrative The demand for maintenance and operational funds has increased continually. The number of traffic control devices has increased along with a deteriorating infrastructure due to less than recommended investment in the pavement preservation program. Investment at the right time is critical to maximize the effectiveness of limited funds. When timely investments are made, infrastructure conditions stabilize and costs to maintain and preserve remain low. With a higher demand to increase pedestrian and bicycle safety, those systems continue to grow. In the last five years, two traffic lights and pedestrian signal improvements in thirty locations have been added. These systems require maintenance, repair, and replacement in future years. Deferred maintenance due to limited funding results in the deterioration of the infrastructure and higher maintenance and repair needs. The current funding available will not be enough to properly maintain Packet Pg. 305 9.4 the infrastructure. Attachments: Ordinance TBD increase 4.11.23 Packet Pg. 306 9.4.a RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, INCREASING THE VEHICLE LICENSE FEE AUTHORIZED BY RCW 82.80.140 FROM TWENTY DOLLARS TO FORTY DOLLARS. WHEREAS, pursuant to Ordinance 4053, the City of Edmonds assumed all the powers of the transportation benefit district that it created in 2008; and WHEREAS, pursuant to RCW 36.73.065, a transportation benefit district that includes all the territory within the boundaries of the jurisdiction establishing the district may impose by a majority vote of the governing board of the district up to $40 of the vehicle fee authorized in RCW 82.80.140 if a vehicle fee of $20 has been imposed for at least 24 months; and WHEREAS, a city having assumed a district can do the same thing by a majority vote of its city council; and WHEREAS, the $20 vehicle license fee has been imposed since 2009; and WHEREAS, the city council would now like to increase the vehicle license fee from $20 to $40; now therefore, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The vehicile fee authorized in RCW 82.80.140 is hereby increased from twenty dollars ($20) to forty dollars ($40). Section 2. The fee increase in Section 1, above, shall take effect as soon as it can be implemented by the Department of Licensing. RESOLVED this day of , 2023. CITY OF EDMONDS MAYOR, MIKE NELSON ATTEST: Packet Pg. 307 9.4.a CITY CLERK, SCOTT PASSEY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: RESOLUTION NO. Packet Pg. 308 9.5 City Council Agenda Item Meeting Date: 06/27/2023 Adopting Legislative Blake Fix Staff Lead: Commander Shane Hawley and Chief Michelle Bennett Department: Police Services Preparer: Alexandra Ehlert Background/History The state legislature was called to special session earlier in May to work on legislation that would amend the Blake Decision. Previous legislation expires July 1. This new legislation goes into effect by the legislator in August. Staff Recommendation We are asking council to approve this unanimously as that is what is needed for an immediacy clause so it can take effect as of July 1 and eliminate the gap between state legislation. Narrative This ordinance would fix the gap the state legislator created from July 1 to August by adopting the legislative fix immediately in the City of Edmonds. This does not add anything to what the state legislator has created, it only allows Edmonds to enforce that law without a delay. If it's not unanimously approved, it cannot take effect right away which will cause a gap in the law thus not allowing for any enforcement of the law for approximately one month. The attached ordinance adopts the new state law so individuals can be charged and prosecuted in Edmonds Municipal Court for the Misdemeanor and Gross Misdemeanor crimes as the state legislator wrote. Attachments: 2023-06-26 Ordinance adopting ESB 5536[1] Packet Pg. 309 9.5.a ORDINANCE NO. AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING CHAPTER 5.14 OF THE EDMONDS CITY CODE TO ADOPT STATE STATUTES BY REFERENCE RELATED TO COUNTERFIET SUBSTANCES AND LEGEND DRUGS; DECLARING A STATEMENT OF URGENCY; PROVIDING FOR SEVERABILITY; AND SETTING THE EFFECTIVE DATE. a_ m m WHEREAS, in February 2021, the Washington State Supreme Court declared unconstitutional Washington's felony drug possession laws which criminalized the unknowing N possession of controlled substances; and WHEREAS, in July 2021, the Legislature adopted temporary legislation expiring July 1, a 0 2023, making it a misdemeanor to knowingly possess controlled substances but requiring law Q enforcement to refer individuals for assessment and treatment for their first two arrest before the V individual could be prosecuted for their third arrest; and n WHEREAS, the July 2021 legislation proved impossible for law enforcement to implement; and WHEREAS, to ensure state-wide consistency in drug possession and use laws, during a special legislative session this May, the State Legislature passed legislation (SB 5536 the so- called Blake -fix) effective July 1, 2023, that makes knowing possession and public use of controlled substances and counterfeit substances gross misdemeanors; and WHEREAS, the bill also makes knowing possession and public use of non-prescription legend drugs misdemeanors; and WHEREAS, the bill does not mandate but encourages pre-trial diversion; and WHEREAS, the state fully occupies and preempts the entire filed of controlled substances and drug paraphernalia and Edmonds ordinances must be consistent with state law; and WHEREAS, the SB 5536 was signed by the Governor on May 16, 2023; and Packet Pg. 310 9.5.a WHEREAS, the City Council of Edmonds adopts state criminal statutes by reference to obtain jurisdiction to prosecute misdemeanor and gross misdemeanor offenses; and WHEREAS, the City Council would like to amend Edmonds City Code Chapter 5.14, entitled "Controlled Substances, Paraphernalia, Poisons And Toxic Fumes", to ensure Edmonds's jurisdiction to arrest and prosecute misdemeanors and gross misdemeanors related to the knowing possession and public use of counterfeit substances, controlled substances and non- prescription legend drugs; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Section 5.14.010 of the Edmonds City Code, entitled "State statutes adopted by reference.", is hereby amended to read as follows (new text in underline; deleted text in strikethrough): 5.14.010 State statutes adopted by reference. A. Effect of Adopting State Statutes by Reference. 1. If any section, subsection, sentence, or provision of this title, or its application to any person or circumstance is held invalid, the remainder of this title, or the application of the section, subsection, sentence or provision to other persons or circumstances is not affected, and to this end, the sections, subsections, sentences and provisions of this title are declared to be severable. 2. By adopting state statutes, the city intends to assume jurisdiction over and become the jurisdictional authority for the enforcement and prosecution of misdemeanor and gross misdemeanor crimes. Whenever the word "state" shall appear in any statute adopted by reference in this title, the word "city" shall be substituted therefor; provided, however, the term "city" shall not be substituted for the term "state" in those circumstances which set forth administrative or licensing duties of the state and its subdivisions. Packet Pg. 311 9.5.a 3. Whenever a state statute specifically adopted in this title refers to another state statute not specifically adopted in this title, the statute referred to shall be given the force and effect necessary to enforce the statute specifically adopted in this title. 4. Any section of this title that is repealed or amended by ordinance shall remain in full force and effect until the effective date of the ordinance repealing or amending the section. Any state statute that is adopted by reference which is later amended, repealed, or recodified shall remain in full force and effect until the effective date of the legislative act that repeals, recodifies, or amends the state statute. The amendment or recodification of any state statute adopted in this title shall be given its full force and effect upon the effective date of its amendment or recodification. 5. When issuing a citation, information, or complaint for the violation of any section of the RCW adopted by this title, it shall be sufficient for a commissioned officer or prosecutor to cite to and refer to the RCW section number. B. The following statutes of the state of Washington, including all future amendments, are adopted by reference as if set forth in full herein: RCW 69.43.110 Ephedrine, pseudoephedrine, phenylpropanolamine — Sales restrictions —Electronic sales tracking system — Penalty_ 69.43.120 Ephedrine, pseudoephedrine, phenylpropanolamine — Possession of more than fifteen grams — Penalty — Exceptions. 69.43.130 Exemptions — Pediatric products Products exempted by the state boa-Fd pharmacy Quality assurance commission. 69.50.101 Definitions. 69.50.102 Drug paraphernalia — Definitions_ 69.50.201 Enforcement of chapter — Authority to change schedules of controlled substances_ 69.50.202 Nomenclature_ Packet Pg. 312 9.5.a 69.50.204 (c)(2217) Schedule I — Mar-�:tanaCannabis. 69.50.309 Containers. 69.50.360 Cannabis retailers, employees of retail outlets — Certain acts not criminal or civil offenses. 69.50.363 Mxana -Cannabis processors, employees — Certain acts not criminal or civil x offenses. i_ 69.50.366 Cannabis producers, employees — Certain acts not criminal or civil m offenses. > 69.50.4011 Counterfeit substances —Penalties. �+ 69.50.4013 Possession of controlled substancePenalty—Possession of useable cannabis, cannabis concentrates, or cannabis -infused products —Delivery. Q products —Delivery. 0 69.50.4014 Possession of fortygrams or less of cannabisPenalty. a 69.50.412 Prohibited acts: E — Penalties. amended e 34 69.50.4121 Drug paraphernalia — Selling or giving — Penalty_ LO 69.50.420 Violations — Juvenile driving privileges_ ca w 69�.425 Misdemeaner—Aela4ions Minimum pen-alties r 69.50.445 Opening or consuming package containing cannabis, useable -000 cannabis, or cannabis -infused product in view of general public — Penalty_ c 69.50.505 Seizure and forfeiture_ �a 69.50.506 Burden of proof; liabilities. p c0 69.50.509 Search and seizure of controlled substances. N C. Notwithstanding the RCW sections that are specifically adopted by reference in subsection (B) of this section, all RCW sections that constitute misdemeanors and gross misdemeanors and the RCW sections necessary for the investigation, arrest, prosecution, sentencing, confinement, and enforcement of misdemeanors and gross misdemeanors are hereby adopted by reference as currently enacted or as hereafter amended or recodified from time to time, and shall be given the same force and effect as if set forth herein in full. Packet Pg. 313 9.5.a D. All class C felony crimes set forth in the RCW are hereby adopted by reference for the purposes of charging a gross misdemeanor for a violation of any of the crimes set forth in Chapter 9A.28 RCW. The adoption of class C felonies shall be subject to the provisions of subsections (A) and I of this section. Section 2. Section 5.14.015 of the Edmonds City Code, entitled "Possession of legend drug without prescription or order prohibited.", is hereby amended to read as follows (new text in underline; deleted text in strikethrough): 5.14.015 Possession of legend drug without prescription or order prohibited. ON I n-'11i Oil 1 1, 111 - ------ I M. . . ...... IMMOM . I. �M -1, 1 i I i • . M IM-- �.-'011111 Milli IW - W11 M, I I I I I.N., i i I I I i Packet Pg. 314 9.5.a sss. . W. MMM 11 ■- - . MUl --- - --- . - . ME I I I'll, 1, 1 1, 1. �-' I MI Is i M M M , NO M- The following statutes of the state of Washington, including all future amendments, are adopted by reference as if set forth in full herein: RC W 69.41.030 Sale, delivery, or possession of legend drug without prescription or order prohibited — Exceptions — Penalty. Section 3. Statement of Urgency. This ordinance is necessary for immediate preservation of public peace, health, and safety or for the support of city government and its existing public institutions. Section 4. Severability. If any section, subsection, clause, sentence, or phrase of this ordinance should be held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. Section 5. Effective Date. Pursuant to RCW 35A.11.090(2), this ordinance shall take effect immediately upon final passage, if passed by a unanimous vote of the council. If passed by Packet Pg. 315 9.5.a a less than unanimous vote of the council, this ordinance is subject to referendum and shall take effect thirty (30) days after final passage of this ordinance. APPROVED: MAYOR MICHAEL NELSON ATTEST/AUTHENTICATED: CITY CLERK, SCOTT PASSEY APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: IM JEFF TARADAY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. Packet Pg. 316 9.5.a SUMMARY OF ORDINANCE NO. of the City of Edmonds, Washington On the day of , 2023, 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 CHAPTER 5.14 OF THE EDMONDS CITY CODE TO ADOPT STATE STATUTES BY REFERENCE RELATED TO COUNTERFIET SUBSTANCES AND LEGEND DRUGS; DECLARING A STATEMENT OF URGENCY; PROVIDING FOR SEVERABILITY; AND SETTING THE EFFECTIVE DATE. The full text of this Ordinance will be mailed upon request. DATED this day of , 2023. CITY CLERK, SCOTT PASSEY Packet Pg. 317