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2024-11-12 Council MinutesEDMONDS CITY COUNCIL MEETING APPROVED MINUTES November 12, 2024 ELECTED OFFICIALS PRESENT Mike Rosen, Mayor Vivian Olson, Council President Chris Eck, Councilmember Will Chen, Councilmember Neil Tibbott, Councilmember Michelle Dotsch, Councilmember Susan Paine, Councilmember Jenna Nand, Councilmember 1. CALL TO ORDER/FLAG SALUTE STAFF PRESENT Phil Williams, Acting Public Works Director Kim Dunscombe, Acting Finance Director Angie Feser, Parks, Rec., & Human Serv. Dir. Shane Hope, Acting Planning & Dev. Dir. Todd Tatum, Comm., Culture & Econ. Dev. Dir. Shannon Burley, Deputy Parks, Rec., & Human Serv. Dir. Jeff Taraday, City Attorney Scott Passey, City Clerk Jerrie Bevington, Camera Operator The Edmonds City Council meeting was called to order at 7 pm by Mayor Rosen in the Council Chambers, 250 5"' Avenue North, Edmonds, and virtually. The meeting was opened with the flag salute. 2. LAND ACKNOWLEDGEMENT Councilmember Dotsch read the City Council Land Acknowledgement Statement: "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." 3. ROLL CALL City Clerk Scott Passey called the roll. All elected officials were present. 4. PRESENTATIONS MAYOR'S FINANCE UPDATE Mayor Rosen reported on October revenues, noting it is a good newsibad news story and a testament to making conservative projections. As of the end of October, the good news is property tax revenue was $765,000 higher than the same time last year; the bad news is it is $162,000 below what was budgeted. The good news is sales and use tax revenue was $98,000 higher than the same time last year; the bad news is it is $501,000 below the budgeted amount. REET revenue is $609,000 higher than the same time last year and also $547,000 higher than the cumulative budget. 5. APPROVAL OF AGENDA Edmonds City Council Approved Minutes November 12, 2024 Page 1 COUNCILMEMBER CHEN MOVED, SECONDED BY COUNCIL PRESIDENT OLSON, TO APPROVE THE AGENDA IN CONTENT AND ORDER. COUNCILMEMBER NAND MOVED, SECONDED BY COUNCILMEMBER PAINE, TO AMEND COUNCIL BUSINESS TO ADD AS ITEM 10.1, APPROVAL OF THE ECOREMEDY CONTRACT. AMENDMENT CARRIED UNANIMOUSLY. MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY. 6. AUDIENCE COMMENTS Pam Tauer, Edmonds, representing the Mayor's Climate protection Committee, relayed the committee enthusiastically supports the inclusion of the Climate Element in the 2024 comprehensive plan ahead of the state mandated deadline. The Climate Element focuses on two main sub -elements, climate resilience and greenhouse gas emission reduction. Both sections comprise goals and policies in support of climate resilience and mitigation. Additional sections include implementation actions and potential action items. Climate mitigation, climate resilience and carbon reduction are priorities in Edmonds. Funding, resourcing and competing priorities will always be constraints facing the city. Delaying action is likely to result in higher costs than action undertaken in the short term. Planning for the next 20 years requires action and implementation now. The Climate Protection Committee recommends the following enhancements to the 2024 Comprehensive Plan Climate Element: 1) refining the potential action items section to strengthen the language ensuring tangible outcomes whether by adding more goals and/or policies within the sub -element statements or by incorporating additional implementation actions, 2) incorporating a hazard mitigation plan into the objectives. This plan is important to satisfy the state's climate element planning and key to grant application award criteria, 3) implementing a measurement plan as a matter of priority. The city cannot assess the climate action plan progress without a measurement capability, and 4) citing community engagement in support of the implementation actions. Edmonds has an engaged and passionate community of environmentalists, scientists and activists that want to participate in meeting climate commitments. Gayle Shoemake, Edmonds, commented she was incredibly proud of the work the council has been doing; the work is awful and councilmembers are here every week working hard to get it taken care of. She asked the council to increase the resilient elements in the comprehensive plan. The resilient elements are what prepare for whatever will happen with climate change, whether flooding, sea level rise, wildfires, heat dome, etc. If the city does not prepare, it will cost between 4 and 13 times as much to deal with it. She urged the council to consider that as they considered the comprehensive plan and know that the citizens are behind them and will do whatever they can to help. 7. RECEIVED FOR FILING 1. CLAIM FOR DAMAGES FOR FILING 2. BUDGET QUERIES 4.0 - COUNCIL BUDGET QUESTIONS AND ADMINISTRATION/STAFF RESPONSES 3. WRITTEN PUBLIC COMMENTS 8. APPROVAL OF CONSENT AGENDA ITEMS COUNCIL PRESIDENT OLSON MOVED, SECONDED BY COUNCILMEMBER DOTSCH, TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: 1. APPROVAL OF COUNCIL SPECIAL MEETING MINUTES OCTOBER 8, 2024 2. APPROVAL OF COUNCIL MEETING MINUTES OCTOBER 8, 2024 3. APPROVAL OF COMMITTEE MEETING MINUTES OCTOBER 15, 2024 Edmonds City Council Approved Minutes November 12, 2024 Page 2 4. APPROVAL OF COUNCIL SPECIAL MEETING MINUTES OCTOBER 15, 2024 5. APPROVAL OF SPECIAL PPW MEETING MINUTES OCTOBER 18, 2024 6. APPROVAL OF COUNCIL MEETING MINUTES OCTOBER 22, 2024 7. APPROVAL OF COUNCIL SPECIAL MEETING MINUTES OCTOBER 29, 2024 8. APPROVAL OF CLAIM CHECKS AND WIRE PAYMENTS 9. APPROVAL OF PAYROLL AND BENEFIT CHECKS, DIRECT DEPOSIT AND WIRE PAYMENTS 10. RESOLUTION ADOPTING COUNCIL RULES OF PROCEDURE 9. PUBLIC HEARING 1. PUBLIC HEARING ON PROPOSED 2025-2026 BIENNIAL BUDGET Mayor Rosen opened the public hearing. There were no public comments. Mayor Rosen closed the public hearing. 10. COUNCIL BUSINESS 1. ECOREMEDY, LLC EXTENDED OPERATIONS AND MAINTENANCE CONTRACT COUNCIL PRESIDENT OLSON MOVED, SECONDED BY COUNCILMEMBER CHEN, TO APPROVE FOR THE MAYOR'S SIGNATURE THE ECOREMEDY CONTRACT IN THE SPECIAL MEETING PACKET. COUNCIL PRESIDENT OLSON MOVED, SECONDED BY COUNCILMEMBER CHEN, TO AMEND TO ADD AN APPROVED AS TO FORM CITY ATTORNEY SIGNATURE BLOCK TO THE CONTRACT. MOTION CARRIED (6-1), COUNCILMEMBER NAND VOTING NO. COUNCIL PRESIDENT OLSON MOVED, SECONDED BY COUNCILMEMBER CHEN, TO AMEND PAGE 9A IN THE EXTENDED TRAINING SECTION, TO REPLACE EVERYTHING AFTER `BUT RATHER" WITH "TO EXTEND THE PERIOD DURING WHICH THOSE TRAINING REQUIREMENTS ARE BEING DELIVERED." Council President Olson explained during the earlier special council meeting, although it was said the intent was clear, she did not think it was as clear as would be ideal that the training requirements in the original contract were being extended. This amendment makes it more clear that the training requirements established in the original contract were being extended. She asked staff whether there was any value to adding that language. Acting Public Works Director Phil Williams found the language acceptable and said he checked with David Mooney, President of Ecoremedy, and he was also willing to accept that language. AMENDMENT CARRIED UNANIMOUSLY. MAIN MOTION AS AMENDED CARRIED (6-1), COUNCILMEMBER CHEN VOTING NO. 2. DRAFT COMPREHENSIVE PLAN ELEMENTS FOR CLIMATE AND ECONOMIC DEVELOPMENT Acting Planning & Development Director Shane Hope reviewed: Climate Element • What's New o HB 1181 was adopted into the Growth Management Act (GMA) in 2023 for local comprehensive plans to include goals and policies related to climate change and resiliency. o Requires local governments to adopt to and mitigate the effects of a changing climate (RCW 36.70A.070(9)) o The Climate Element must include two sub -elements: Edmonds City Council Approved Minutes November 12, 2024 Page 3 1. Greenhouse Gas (GHG) Emissions Reduction Sub -Element 2. Resilience Sub -Element • Climate Element Status o Past: ■ 2015 comprehensive plan (updated in 2020) has Sustainability Element, which includes information and policies about climate protection ■ hi 2023, City adopted Climate Action Plan o Proposed ■ In Draft 2024 Comp Plan, Sustainability Element is replaced by Climate Element. ■ The new draft Climate Element lays foundation for more complete climate element to be adopted in 2029. It: - Identifies necessary steps and key focus areas for the next few years. - Will require an update by 2029 with more detailed analysis (and resources) to ensure complete compliance. City's progress so far (2023 Climate Action Plan (CAP): Published in 2023) o Refine climate action goals to meet targets that had not been met by Edmonds community ■ Equity Considerations: Emphasizes the need for equitable climate action. M C] co, ■ Provides steps for the City, individuals and ACall Introduction Summaryof businesses to work towards being carbon to Action GHG Inventory neutral by 2050. � ■ GHG Inventory Summary: Provides an overview of the greenhouse gas inventory Environment Lifestyles and Tracking and sources of GHG emissions. Consumption Progress ■ Mitigation Strategies: Focuses on reducing GHG emissions through: r - Buildings and Energy - Transportation and Land Use Equity and Energy Buildings and Land U en - Lifestyle and Consumption ■ Adaptation Strategies: Includes an environment section with strategies to ensure the City can adapt to climate change. Integration of CAP into Comprehensive Plan • Climate Equity o Goal CC-1. Provide information and opportunities for Edmonds residents to learn more about the climate crisis and take action ■ Partner with environmental organizations ■ Access to healthcare services in underserved areas Edmonds City Council Approved Minutes November 12, 2024 Page 4 o Goal CC-2: Seek to alleviate environmental and health disparities on vulnerable populations resulting from climate change ■ Encourage public health systems to anticipate and respond to emerging climate -related health threats. ■ Support programs to ensure that all residents, regardless of race, social, or economic status, have clean air, clean water, and other elements of a healthy environment. Climate Resilience Sub Element o Implementation and monitoring of climate resilience strategies are critical; City adopted Snohomish County 2020 Hazard Mitigation Plan; o With Comprehensive Plan update, City wants integration of Climate Adaptation and Hazard Mitigation to recognize interconnectedness regarding climate change impacts. o That helps communities: ■ Recognize and address the compounding risks posed by climate change and natural hazards. ■ Identify opportunities to implement measures that provide multiple benefits. ■ Build resilience by incorporating adaptive strategies into hazard mitigation plans. ■ Integrate climate projections and future risk assessments into hazard mitigation planning processes to ensure that mitigation measures are robust and effective in the face of changing climate conditions. ■ Identify opportunities to leverage funding and resources from multiple sources. o Goal CC-3: Fulfill requirements of HB 1181 for addressing climate change ■ Conduct a climate change risk •Response -Human assessment and impact analysis, capacity - Ecological -Adaptive -Local to Global consistent with state guidance. capacity scales ■ Broadly engage the public, •ReorgFrR,,ilience Adaptation anise including through equitable public outreach processes. ■ Consider strategies that coordinate Cli ate with the Snohomish County *Natural Chmange Hazard Mitigation Plan and the Disasters -Economic Shoreline Management Act. -impacts to •Geographic ecosystem •Equity Issues services o Goal CC-4: Seek to reduce community exposure to extreme heat, precipitation, smoke, sea - level rise, and other climate -exacerbated events ■ Address the impacts of sea level rise by developing and implementing a comprehensive adaptation plan... ■ Seek funding sources, including grants, state and federal funding, and public -private partnerships for sea -level rise adaptation projects... ■ Enhance emergency preparedness, response, and recovery efforts... ■ Support climate resilience planning efforts of other districts and county programs... GHG Emissions Reduction Sub -element o Background Edmonds City Council Approved Minutes November 12, 2024 Page 5 Current Climate Action Plan uses 2017 750,000 GHC inventory as base line. o Better to use 2022 as city's emissions baseline year to achieving net zero 0 500,000 Imported Emissions emissions in 2050, consistent with E Washington's statewide targets. z u Would need to update GHC inventory by s•. 250,000 securing funding and resources as E available. u° • g�1OinQ6 n • Trarspurtston N • Rcrrgaant 0 • Wnt Local - Imported o Goal CC-5: Promote green building practices and embrace renewable energy sources to reduce carbon emissions ■ Strengthen energy efficiency codes ■ Support programs and incentives that encourage existing land use, buildings and infrastructure to reduce their carbon footprint ■ Encourage electric heat pumps and consider limiting the use of natural gas ... in new construction. ■ Partner with Puget Sound Energy and other organizations to identify and select appropriate and cost-effective energy improvements. ■ Explore financial assistance programs such as low interest loans or grants for installation of solar energy projects and energy efficient equipment. ■ Remove barriers for installing residential and small business renewable energy systems and community solar... o Goal CC-6: Reduce vehicle miles traveled (VMT) by promoting active transportation and mobility by all modes to achieve greenhouse gas reduction goals ■ Prioritize multimodal investments where needed in neighborhood centers, hubs and activity centers ■ Promote active transportation to reduce VMTs through sustainable land uses framework and transit capital improvements... ■ Establish guidelines for the installation of EV charging stations in the public ROW space ■ Explore options to convert more of municipal fleet to electric vehicles o Goal CC-7: Reduce material consumption, waste generation, and resource depletion ■ Promote zero -waste programs and educational initiatives to "reduce, re -use, and recycle". ■ Promote local farmers' markets in activity centers, and neighborhood centers and hubs. ■ Ensure that the City sets an example by promoting sustainable practices when organizing events, with a focus on reducing waste in materials, food, and other resources. Implementation/Performance Metrix o Goal CC-8. Develop a set of climate metrics that can be tracked, assessed and reported on by the City on an on -going basis. o Goal CC-9. Consider long-range, strategic, and short-term planning and decision -making in making progress toward community sustainability. NOTE: Some refinements still needed to distinguish "potential action items" from broad policies and identify highest priorities for action Draft Economic Development Element Community, Culture & Economic Development Director Todd Tatum recognized the incredible amount of work, thought and effort put into this element by the Economic Development Commission (EDC). The Edmonds City Council Approved Minutes November 12, 2024 Page 6 EDC met several times and a separate subcommittee was formed. He also recognized the thought, effort and collegiality of the planning board and their impact on this element which included two joint meetings with the EDC and planning board. He reviewed: • Summary of Economic Development Element o An economic development element established local goals, policies, objectives, and provisions for economic growth and vitality and ahigh quality of life o Includes ■ Context for economic development in Edmonds. ■ Key employment sectors. ■ Key concepts that staff and the Economic Development Commission believe are important to understand the City's economy today and in the future. ■ Proposed Goals and Policies for the 2024 Edmonds Comprehensive Plan Economic Development Element Update. • Edmonds Economy Employed Edmonds Residents by Industry, 2020 Employed population 16 years and over 21909 Heats care 8 Education 4,572 GProf—onal, scientific, 15 management and other Services 3.W Retail Trade 2.647 EFina e. Insurance, and Real Estate 1.90 E Manufacturing 1,886 Const[ucuon 1,860 >r AM1s, Recreation.-comrtgdelion and Food Services 1,830 Other 5env - 991 WTU 843 Public Administration 653 lnformati n 487 Wlol `e lade 429 Agricuhwe, Forestry 8 Mimng 94 Means of Transportation to Work (Workers 16 Years and Over) Drove alone Carpool Public transportation Walked Bicycle Taxicab, motorcycle, or other means Worked from home Mr. Tatum read definition of economic development from .... T,4a74rs In, 4 65%Gaul conb.6110on1, Wi[rMlr[dn ]Ii% Fnes•rWPM lbes, 0 76% 1100% Percentage Relnnw by Type - N Funds, 2024 1-dP -n, 1 80% 1«nror�« 7 Ka I-0- 62.7% 6.1% 5.8% 2.4% 0.8% 1.0% 21.2% Percentage Revenues by Type • General Fund, 2024 i[[M1awt«[. r s4a • Community Interest o Develop policies to protect businesses from displacement o Focus on job retention as well as job creation o Ensure economic development is not at the cost of our natural resources, parks, open spaces o Balance economic growth with the preservation of natural resources, parks and open spaces o Address budget shortfalls and efficient usage of tax money o Promote local shopping and services to boost the local economy • Challenges and Onnortunities Challenges Opportunities Differing opportunities compared to rest of county Adapt to changing commercial space needs Established as a destination Edmonds City Council Approved Minutes November 12, 2024 Page 7 Long-term infrastructure needs Need for collaborative communication and community engagement Lack of tracking and data collection Managing displacement risk Consensus building and directional unity Broken or non-existent linkages in community systems Absence of equity framework for investments An integrated place -based strategy o The Adjacent Possible - Grow into the "adjacent possible," rather than by taking giant leaps into "distant" economic sectors. o Remote Work / Work From Home / Flexible Schedules - A functional and desirable place to work remotely is key to Edmonds ongoing economic success. o Creating Neighborhoods of Opportunity - To provide its residents with great opportunities. o Placemaking and Destination Development - Creating and sustaining places in the built and natural environments that people want to go to, linger, and spend time in with family, friends, and neighbors. Position as leader in south Snohomish County Affordable housing and community engagement Reimagine infrastructure approaches Shift in mindset and tracking metrics Refocused communication and outreach Strengthen linkages within the community Implement an equity framework for investments Governing Effectively (Goal D) Growing the Economy -- (Goal A) What are we trying to achieve? o Goal ED-1: Diversity and grow the City's jobs and economy ■ Policies explored to: - Make Edmonds more desirable to different employment sectors - Enable existing employers to key employment sectors to thrive, and actively attract new employers and jobs - Market Edmonds as a year-round destination. - Promote unique opportunities in active centers and Neighborhood Centers and Hubs - Encourage active partnerships Focusing on Quality of life (Goal Q Knowledge workers • science, management - arid other professional services • Business Services. Finance, insurance, and real estate • Information & Communication Technology Placemaking ,(Goal B) Health care, life sciences. global health The Creative Economy. Ms Tourism • Small-scale artisanal manufacturing. and craft producers Finding our Niche o Goal ED-2: Revitalize and enhance the city's activity centers, neighborhood Edmonds City Council Approved Minutes November 12, 2024 Page 8 Policies explored to - Invest in neighborhoods to create dynamic, mixed use places - Create destination management plans for the City's Activity Centers - Target infrastructure improvements to provide equitable access to public facilities and services - Plan, track and create realistic financing PLACE strategies to improve place - Address imbalances in public investment • - Address business displacement o Goal ED-3: Support and enhance the community's quality of life for all to sustain and attract business and investment and enhance economic well-being ■ Policies explored to - Expand access to opportunity and remove barriers - Support community -led organizations to strengthen their capacity and enhance their effectiveness - Support green job growth - Build community that increases our competitiveness in the regional economy - Recognize, support and empower businesses with cultural significance o Goal ED-4: Ensure a predictable and efficient regulatory environment that facilities economic development ■ Policies explored to: - Offer an efficient, timely and predictable regulatory environment - Align City's investments and programs with the economic development goals - Improve City's expertise in municipal project financing - Ensure that equity is central to the decision -making process - Offer business support, financial or managerial assistance, and technical training. Still to be added to this draft element o Information about target number of jobs, such as: ■ 14,174 estimated jobs in 2020 ■ 17,723 target jobs in 2044 ■ 3,035 more jobs needed by 2044 ■ 515 jobs may be actual remaining capacity need, given existing capacity and assumptions about types of jobs Councilmember Eck commented in this day and age, she did not see either of these sections as nice to have, but as very important and vital to community members and in her view, what makes the City not just good but great, something the City should be striving for. She referred to late breaking recommendations made by the Mayor's Climate Protection Committee via email this afternoon, and asked Ms. Hope her initial thoughts. Ms. Hope responded she just saw the email late this afternoon and had not had an opportunity to ponder it. However, there is a way of compromising such as including items that were brought up into the potential action steps where further resources and further prioritizing will be needed. There is a good possibility that a couple high priority items could be included. Councilmember Eck recognized and appreciated that work on the climate crisis to avert as much damage as possible. She voiced her appreciation for the many volunteers and organizations that worked with the City team including the Edmonds Marsh Advocates, the Mayor's Climate Protection Committee, Sound Salmon Solutions, etc. She also thanked Ms. Hope and her team for consistently listening to them. When she thinks about economic development, she is in awe of EDC and Mr. Tatum's work, and their wonderful ideas and incredible commitment. She was fortunate to be the liaison to the EDC. She appreciated Mr. Edmonds City Council Approved Minutes November 12, 2024 Page 9 Tatum mentioning diversification of business, recalling that has been a topic of conversation at the EDC. It is important for the City to get itself right -sided economically and stay there. Placemaking is also very important because when neighborhoods feel invested in and cared for, ultimately the entire City benefits because it will draw more business and make everyone better. Councilmember Paine expressed appreciation for the Mayor's Climate Protection Committee providing their thoughts and recommendations and said she forwarded what she received to other councilmembers. One of the things she felt was very important was a greenhouse gas assessment which didn't get done this year; the last one was in 2017. Hazard mitigation in the new laws helps support emergency response. There are a lot of natural hazards in the area including earthquakes, sea level rise, etc. There is a lot of community engagement occurring and the City is fortunate to have a lot of expertise in the community to help support sustainability and resilience elements planning. With regard to the Economic Development element, Councilmember Paine referred to a phrase in the first paragraph on packet page 217, fostering a skilled workforce and suggested changing it to a skilled and diverse workforce. There are jobs in Edmonds that are not particularly white collar such as people working in restaurants and manufacturing, and having diversity within the workforce and being able to support and attract those jobs makes the City stronger. She expressed appreciation for Goal ED-4 regarding barriers. She pointed out a barrier, requiring a conditional use permit for at-home childcare in Edmonds. She often sees people on My Edmonds Neighborhoods Facebook Group who are desperate for childcare opportunities in Edmonds. Childcare options are a way to add greater flexibility for the community. She commented it would be awesome to have scorecards to show progress on the elements, particularly prioritizing mandated requirements. Scorecards on progress help support the work the City does and identifies where more work needs to be done or figure out what's going wrong if progress is not being made. With regard to the Climate Element, Council President Olson said a lot of the feedback she has received is regarding potential actions. People are asking for more detail regarding how the goals will be achieved; that will be detailed in potential actions versus policy statements. Ms. Hope said staff is trying to refine that and identify some high priorities. It's great to promise everything, but the challenge is how to deliver it. Council President Olson commented especially right now. Ms. Hope pointed out the City is required by state law to implement the comprehensive plan; if the comprehensive plan commits to doing all these things, the City is violating its comprehensive plan if it does not do those things. She was trying to be careful about what is identified as high priority that the City can and must do versus something that is a great idea, but the City does not have the resources to do it. Promising to do things the City may not be able to do isn't fair. Regarding partnerships, Council President Olson commented to the extent the City has community members eager for the City to move forward on items, they may be part of the manpower solution. With regard to Economic Development, Council President Olson referred to Goal ED-3, and asked why the last bullet regarding cultural significance did not also refer to historical significance. Mr. Tatum answered he was not sure a lot of time was spent discussing the historic significance of places. The main focus and the reason this is included is the International District and the Highway 99 community and the amount of cultural significance in those areas and the risk of displacement. Council President Olson suggested that would be worth highlighting as it speaks to the quality of life and placemaking. There are some really special places such as the movie theater that contribute to the look and feel of Edmonds. With regard to quality of life and comfort, she would love to be more expressive about graffiti control which is critical for placemaking and people feeling safe and secure. She recognized with the budget, it will be challenging to keep up with graffiti, but was interested in making that happen with community partners and volunteers because public safety is critical for businesses wanting to come to Edmonds and when there are gang tags, nobody feels like it's a safe place. Councilmember Nand asked Ms. Hope to respond to the person representing the Mayor's Climate Protection Committee about future opportunities for community engagement and implementation. Ms. Edmonds City Council Approved Minutes November 12, 2024 Page 10 Hope responded she did not have all the answers about how that would be done, but having that policy is important because there is a great community of involved people in Edmonds who are capable and confidence and could help with community engagement. The City engages the people who want to be engaged and they in turn influence others. Councilmember Nand commented one of her favorite memories when she was a volunteer on the Mayor's Climate Protection Committee was the Taming Bigfoot campaign that helped small businesses shrink their carbon footprint. Councilmember Nand said she was impressed with the entire Economic Development element. She highlight Goal ED-3 and 4 and inclusion of destination management plans. She pointed out across from the old 7-Eleven, there is a plaza that has been fairly empty until a Club Pilates recently located there. The parking lot is often full because Club Pilates is a national chain, and a very recognizable business with built- in clientele that brings people to Edmonds. As one of the most popular businesses in that plaza, it provides a customer base for the Subway, Manna Teriyaki, and the hair salon. She hoped the community recognized that incorporating franchises into the small business community can be an economic driver. With regard to the Economic Development element, Councilmember Dotsch commented one of things that has always interested her in Edmonds is the hubs, centers and activity areas and the land use for commercial mixed use is only 7.2%. The areas of commercial mixed use are fairly small such as Five Corners and Perrinville. She relayed concern that expanding housing opportunities will result in lost businesses and jobs. Edmonds has amazing areas within its neighborhoods, eclectic businesses that people gravitate to including on Highway 99. She referred to the use of the term "mixed use" in the document, recalling when Shoreline, where her office was located for 25 years, expanded their mixed use. She preferred the term "mix of uses" so not all the businesses are on the ground floor and being more intentional about preserving commercial space, not just on the first floor with housing above. Councilmember Dotsch commented she was unclear whether the Economic Development element could encourage a mix of uses, recalling discussion about lower heights in the International District and providing a focal point for businesses. This is also applicable to the Climate element due to the ability for Edmonds residents to shop local, noting the Medical District near the hospital is an opportunity to explore to obtain medical care locally. Mixed use is a buzz word. She recalled when the Edmonds council met with Shoreline's City Council they joked Edmonds has the "it factor" and they come to Edmonds to shop and go to restaurants. She feared Edmonds was looking for the eutopia of a perfect solution when it was already under their noses and the goal should be to preserve what we have. Gentrification is another issue with these plans, eliminating what made an area special. Councilmember Dotsch continued, the Chamber of Commerce has indicated business want to come to Edmonds, but they cannot find places to location. To expand the base and the blend of what Edmonds offers, livability and desirability, the Economic Development element needs to be more intentional regarding land use and the mix of uses versus everything being mixed use. Mr. Tatum responded one of the things he's heard and seen from Shoreline is they are great at development. He recalled Shoreline wished they had been able to put more effort or investment into redevelopment of the Sears property. For Edmonds, being actively involved in destination management or placemaking will allow the City to have some input when a developer decides to redevelop a strip mall. Councilmember Dotsch commented Edmonds is unique because there is not a lot of available land other than on Highway 99. What she saw in Shoreline was development of more bedrooms; Edmonds is already a bedroom community, but people also come to Edmonds to shop. She commented on the need for parking to accommodate shoppers which provides revenue for the City. She reiterated her interest in more intentionality around that in the Economic Development element. With regard to the Climate element, Councilmember Tibbott referred to a policy related to the Snohomish County Hazard Mitigation Plan. He asked staff to comment on how that will help Edmonds achieve Edmonds City Council Approved Minutes November 12, 2024 Page 11 resilience, perhaps with budget savings in mind. Ms. Hope answered the City saved money by adopting the 2020 Hazard Mitigation Plan which was prepared on a countywide basis. Instead of creating its own plan, she anticipated implementing aspects of Snohomish County's plan by thinking about climate adaptation which is related to things caused by climate change and recognizing some of those are same as natural hazards such as sea level rise, flooding, earthquakes, etc. that are exacerbated by climate changes. It makes both economic and practical sense to do more to implement and integrate those. Councilmember Tibbott agreed many of the hazards are beyond Edmonds, they are county and statewide so it is important to cooperate with the county. He was pleased to see that emphasis in plan. Regarding the Economic Development element, Councilmember Tibbott recalled reference to the number of jobs available due to working from home. He asked staff to comment on why it is beneficial to the City for residents to work from home and whether there are ways to encourage businesses to allow their employees to work home in Edmonds. Mr. Tatum commented when one is downtown during the day, you see people working from home in the coffee shop, having a walking meeting and visiting a boutique while they're out, etc. The benefit of having people working from home is they are out on the streets and supporting retail which increases the vibrance of commercial areas. With regard to attracting businesses/commercial, leaning into the hubs and centers model and placemaking, the economic development world has felt the pressure of people wanting to leave Seattle, level down from the urban stress and have a place they are comfortable walking. The more Edmonds provides that, the more it is competitive for knowledge type workers such as software, biotech, R&D, etc. Councilmember Tibbott responded Mr. Tatum's answer spears his imagination about what it would be like to have a year-round economy; a year- round economy means more businesses and more places and not just concentrated around the marina, the waterfront or office buildings on Highway 99. It also relates to making capital investments in an equitable way so it facilitates growth in all areas of the City instead of just the most obvious. Councilmember Chen referred to Goal ED-2 related to enhancing activity centers and neighborhood centers, placemaking and ED-3 focused on culture and emphasis on the Highway 99 corridor. The EDC has had great ideas, but there has been little progress in that regard. One of the models that has been discussed is the Public Facilities District (PFD) concept. There is one PFD in Edmonds, Edmonds Center for the Arts, that is focused on performing arts, but the City could form a second PFD to develop placemaking along Highway 99. Vacant and low use land on Highway 99 provides an opportunity to think long term. There is a need for affordable housing, economic development, emergency response, childcare, etc. which could be achieved with the use of tax increment financing. He recognized it will require some soul searching to put that together. Mayor Rosen declared a brief recess. 3. COUNCIL 2025-26 BUDGET DELIBERATIONS Mayor Rosen provided an introduction, explaining there are 13 proposed amendments; Acting Finance Director Kim Dunscombe will provide opening remarks and amendments will be considered in order with the councilmember who proposed it making a motion followed by discussion if the motion is seconded. Acting Finance Director Kim Dunscombe advised of a new link on the City's budget website that contains comprehensive information about all the priority based budgeting programs. There is a document before all the department folders that provides reminder details about basic program attributes, council priorities, and results of the community survey which can be used to help evaluate programs and learn more about how the budget was prepared. She introduced the following staff recommended amendments: 911 Services Fire and Police Split - Staff Recommendation #1 Ms. Dunscombe explained this is generally paid monthly from an invoice as one lump sum and she was unaware there was a breakout until the budget process began. There are two different components to this Edmonds City Council Approved Minutes November 12, 2024 Page 12 service charge; the entire amount was moved into Department 41 but she was now finding it more appropriate to move the fire component of the bill back to Department 39 as it was not related to police. This is a budget neutral amendment, simply moving funds from one department to another. COUNCILMEMBER PAINE MOVED, SECONDED BY COUNCILMEMBER ECK, TO SPLIT THE 911 SERVICES FOR FIRE RELATED CALLS FROM POLICE RELATED CALLS AND MOVE THE FIRE PORTION OF THIS EXPENSE TO DEPARTMENT 39-NON-DEPARTMENT. MOTION CARRIED UNANIMOUSLY. COLA Reduction — Staff Recommendation #2 Ms. Dunscombe explained the proposed budget initially assumed a 3.8% COLA for 2025. However, recent decisions reduced the COLA to 3% for non -represented employees which also affected council and mayor salaries. A couple collective bargaining agreements that will be settled 12/31/24 have set the COLA at 3%. This amendment reduces the COLA for those work groups. COUNCIL PRESIDENT OLSON MOVED, SECONDED BY COUNCILMEMBER NAND, TO ADOPT STAFF RECOMMENDATION #2, REDUCING THE COLA FOR THE UPCOMING YEAR FROM 3.8% TO 3%. MOTION CARRIED UNANIMOUSLY. Rate Study for Planning & Development Services — Amendment #C 1 COUNCILMEMBER DOTSCH MOVED, SECONDED BY COUNCIL PRESIDENT OLSON, TO ADD $5,000 TO PLANNING & DEVELOPMENT TO CONDUCT A RATE STUDY IN THE BEGINNING OF 2025. Councilmember Dotsch explained the idea is to get the fees in line with inflation and pass along costs for services the City provides. In discussions with Ms. Hope, she indicated $5,000 may not be enough. The goal is to have a rate study done and have the fees remain current year after year. Councilmember Paine asked if the study would address cost recovery for permit fee processing for Planning & Development and Engineering. Councilmember Dotsch answered yes. Councilmember Paine recalled Ms. Hope's answer to a council question in budget query #4 indicated only 41% of permit fees cover the cost of salaries for permitting staff. She supported having a rate study conducted in 2025. Council President Olson asked how long it would take to recapture the cost of the duty via increasing fees. If it will take more than a year, this year may not be the right year to do the study. Ms. Dunscombe answered rate studies typically take at least 6-7 months to complete. Once the study is completed, changing and implementing the rates can be done quickly. Council President Olson clarified her question was the differential in the increased fee; how long it would take for the increased fees as a result of the study to offset the $5000+ cost of the rate study. Ms. Dunscombe answered it depends on the cost of the rate study; the cost of the rate study could be built into the fee increase. Council President Olson commented that information would affect her support for the rate study this year. Ms. Dunscombe said she was concerned with the $5,000 price tag as she had not seen a study that low for a while. Council President Olson suggested getting more information about the cost of the study. Ms. Dunscombe said if the council is interested in a rate study, staff could put out some feelers regarding the price. As this proposed amendment would add a cost to budget, she asked if council planned to direct staff to look for an offset or if the $5000+ cost would come from fund balance. Councilmember Tibbott suggested raising the fees a percentage related to inflation over the past few years instead of hiring a consultant to do that work. If the fees have remained the same for the last three years, a percentage increase could be applied which would not require hiring a consultant. Ms. Dunscombe answered as the City is only recouping 41 %, it would be beneficial for an outside consultant to analyze how much time it takes to go through all the City's systems to issue a permit. She understood the concept of applying a COLA escalation, but since the City is only recouping 41%, it would behoove the City to Edmonds City Council Approved Minutes November 12, 2024 Page 13 determine how much labor is required to issues permits. Councilmember Tibbott relayed his understanding the study would look at how work is done in that department and the turnaround time. Ms. Dunscombe agreed that would be part of the information that comes from a thorough rate study. Councilmember Paine commented development fee revenues for 2023 were $1.47M versus $3.46M in staffing expenditures which does not include the director, code enforcement or the administrative assistant. As Ms. Dunscombe and others have said, 41% recovery is rather low and $5,000 for a study is also rather low. It would be helpful to have a professional look at development fees to ensure the City is in line with other municipalities who share the same development community. Councilmember Eck agreed with the proposal to do a study, but needed more information to make a decision. COUNCILMEMBER ECK MOVED, SECONDED BY COUNCIL PRESIDENT OLSON, TO POSTPONE THIS TO THE NEXT BUDGET AMENDMENT CONVERSATION WHEN ADDITIONAL DETAIL COULD BE PROVIDED. Councilmember Dotsch expressed support for the motion. Council President Olson expressed support for the motion, relaying she wasn't aware that recovery was only 41% and definitely wanted to proceed if that was true. She also supported finding out the actual cost of the study so the amendment reflects that cost. MOTION CARRIED UNANIMOUSLY. Include Fund Balance Reserve Replenishment in Strategic Outlook — Amendment #C2 COUNCILMEMBER DOTSCH MOVED, SECONDED BY COUNCILMEMBER CHEN, THAT THE FUND BALANCE RESERVE REPLENISHMENT PLAN BE INCORPORATED INTO THE STRATEGIC OUTLOOK (BUDGET BOOK PAGES 20 AND 21) STARTING IN 2027. Ms. Dunscombe commented this is a big one; while she understood where Councilmember Dotsch was coming from, wanting to see that replenishment starting in 2027, she suggested considering other options regarding how to present that. She expressed willingness to work with Councilmember Dotsch to see how she wanted that laid out. In the proposed budget, there are interfund loans in 2025 and 2026. Staff and council reviewed scenarios on Saturday, November 2 that would make it possible to include reserve replenishment beginning in the 2027 or 2028 strategic plan. With two interfund loans in the proposed budget, that doesn't leave room or an ability to start building up the reserves in 2027 because as the strategic plan indicates, it goes into the negative then. A different assumption would need to be built in the proposed or adopted budget to show reserve replenishment starting in 2027 to accommodate this motion. Staff could work on ideas to get there, but there would need to be other changes to the proposed budget to accommodate this motion. Mayor Rosen reminded this is a 2-year budget, 2025 and 2026; several assumptions were made including a 10 year payback which would require council action as the current policy is 8 years. If the motion were approved, he was uncertain how it would be executed. Ms. Dunscombe said she was also unsure how to execute this motion. The proposed budget will appropriate certain expenditures in the biennium; this amendment is to show something in 2027, a year outside the biennium, so it technically would not do anything other than show the City was setting itself up for long term success which is not in the strategic outlook at this time. She concluded it was confusing to have a motion that was a year outside the biennium. Councilmember Chen said he understood where Ms. Dunscombe was coming from; the proposed budget is for 2025/2026. When the 2025/2026 budget was developed, assumptions were made such as annexation into the RFA and there are also plans to ask voters for a levy lid lift. It is fair to have assumptions built in Edmonds City Council Approved Minutes November 12, 2024 Page 14 as long as those assumptions are documented. This discussion is great to increase awareness, but having the strategic outlook going negative in 2027 is probably not the council's plan. He expressed support for the motion, understanding work would need to be done. With regard to the options discussed at the November 2 meeting, he preferred option 2. The reserve policy requires a replenishment plan be developed within 60 days and this motion will help meet that requirement. Mayor Rosen clarified assumptions for the 2025/2026 budget did not include voter approval of a levy lid lift. The administration presented a replenishment plan, but it was not included in budget book. Councilmember Nand said while she respected what Councilmember Dotsch was trying to accomplish, amending the budget book to reflect what should be reflected separately in a replenishment plan as required by the policy framework might be a more appropriate way to achieve the same end. Mayor Rosen pointed out the budget book lives as is until the council adopts the budget and then becomes the new budget book and the actual budget; it is not revised during the council's review process. Councilmember Nand said she did not think the budget book needed to be amended to include this because the replenishment plan is already reflected. Council President Olson expressed support for the intent, suggesting the amendment could be made in 2028. She liked the idea of the strategic outlook reflecting the intent for those years. However, in light of the conversation that has occurred, it sounds like more discussion and meeting of minds is needed. COUNCIL PRESIDENT OLSON MOVED, SECONDED BY COUNCILMEMBER NAND, TO TABLE WITHOUT A DATE AND COUNCILMEMBER DOTSCH BRING IT BACK AFTER THE CONVERSATIONS HAPPEN. MOTION CARRIED (6-1), COUNCILMEMBER CHEN VOTING NO. Reduce Park Maintenance — Amendment #C3 COUNCIL PRESIDENT OLSON MOVED, SECONDED BY COUNCILMEMBER CHEN, TO REDUCE PARKS MAINTENANCE AS INDICATED IN THE AMENDMENT IN THE PACKET, MAINTAIN THE CURRENT SCHEDULE FOR SPORT PLAYFIELDS ONLY AND REDUCE MOWING AND EDGING IN ALL OTHER AREAS OF PARKS TO ONE TIME A MONTH YEAR- ROUND. Parks, Recreation & Human Services Director Angie Feser explained staff identified all the park sites, areas that are mowed, and athletic fields versus non -athletic fields to create these numbers including frequency of mowing per month per site. Staff did not analyze time for edging as every site is different, requiring quality takeoffs which are very time intensive. She estimated 10% of budget would be edging. She reviewed the following: • Current o Mowing occurs 9 months a year • 2024 Parks mowing program details 0 37 sites ranging from 0.02 acre to 4.15 acres ■ Total of 26 acres ■ 1,158 hours (equivalent to .56 FTE) 0 other work such as lawn care, litter, garbage and restrooms and not mowing Dec -Feb • Future: 2025 — 2026 o Reduction of 2 FTEs and 3 Seasonals o Highway 99 landscape (2'/2 miles), no increase in labor, materials or equipment • 2025 Budget — mowing changes to 12 park sites 0 3 acres 0 227 labor hours o Savings of $11,4000 o Effected Sites ■ Dayton Street Plaza (at WWTP) Edmonds City Council Approved Minutes November 12, 2024 Page 15 ■ Elm/711' Street Parak ■ Fire Station 16 ■ Main Street sidewalk/ROW ■ Main/86t1' ■ Marsh Trail/Harbor Square ■ Meadowdale Clubhouse/RW ■ Pine Ridge Park ■ SR 104/Trail ■ Wade James Theater ■ WWTP ■ Yost Memorial Park & Pool Once a Month/Non-Athletic Field Areas 0 292 hours/0.14 FTE o Savings of $14,300 Considerations o Increased damage and wear and tear of mowing equipment o Time occurrence increases by 50% for same area of law o Power blowing for removal of grass clippings o Lawn damage increase changes of disease and insects o Unwanted wildlife — mice, rates, small snakes and other animals Summary: Proposed amendment, if implemented, would save approximately $14,000 Councilmember Nand thanked Council President Olson for bringing this forward and provoking this interesting discussion. When the council was tasked with looking at cost savings, she wondered about irrigation of the medians on Highway 99, parks, etc. as that seemed like an opportunity for significant cost savings. With environmental pressures such as wildfires, reducing maintenance over the 26 acres beyond what parks and environmental professionals think was prudent could potentially have very bad, long term effects. While she appreciated the conversation, she was comfortable with the administration's 1.525M reduction that is already being absorbed by parks and the way Parks has responded in handling that reduction. Ms. Feser commented irrigation has been calculated into some of next year's reductions. There are some areas where irrigation can be reduced or eliminated; that is part of the $1.5M reduction previously proposed. Councilmember Paine expressed her appreciation for the proposed amendment, commenting it is good to look at everything. The proposed $200,000 savings caught her eye, but unfortunately the savings are not that much. She thanked staff for the information, commenting she would not support the motion. MOTION FAILED (2-5), COUNCILMEMBER CHEN AND COUNCIL PRESIDENT OLSON VOTING YES. Reduce $100k for Johnson Property — Amendment #C4 Council President Olson commented this is not a General Fund expense but she planned to bring it up when the council reviews the CFP/CIP. She suggested either not moving this project forward during these fiscal emergency years or move it forward with the assistance of others. COUNCIL PRESIDENT OLSON MOVED, SECONDED BY COUNCILMEMBER CHEN, TO REDUCE $100,000 FOR THE JOHNSON PROPERTY. Council President Olson suggested moving forward with volunteers or free facilitation using people, including Mayor Rosen, who are trained in that; otherwise she did not support moving forward in 2025/2026 as there are many potholes that REET funds could be used to repair. Edmonds City Council Approved Minutes November 12, 2024 Page 16 Ms. Feser reviewed: Capital Project • 2026 Project • 2025 CIP/CFP In-depth review and adoption 2021 Donation • Approx $1.51VI market value • New park property • Property nor location in 2022 PROS Plan Future Use • Expansion of Yost Park— amenities • Opportunity for full community engagement • Technical design — permitting and construction Shirley Johnson's Will states: "specifically for purposes of being used as a park and/or a community garden site and/or to cultivate and grow plants, fruits, vegetables and other related things oll for the City of Edmonds and for the citizens of Edmonds and the local community as the City of Edmonds deems best in their discretion." Ms. Feser continued, at some point the City needs to engage licensed landscape architects or engineers to bring the project to the permitting process which requires stamped drawings. It would be fantastic if the City could find a landscape architect willing to donate their time to a community process. There are a couple years to plan for that and recruit. Councilmember Nand asked if there would be any potential harm to the City's interest or damage to the property if the start of this process was delayed until 2026 or beyond. Ms. Feser answered the property is secure and there are no attractive nuances on the site; it is fenced and has a gate, the buildings demolished, and the site leveled, covered with top soil and reseeded. The site can sit as is until it is designed and built into what the community wants on the site. Councilmember Nand asked Council President Olson if she would be amenable to amending the year when the project was funded in the CFP/CIP. Council President Olson answered she preferred to zero out the amount in 2026; the funds could be included in an out year. She anticipated the funds could be replaced with a volunteer effort and the City would not have to spend any money at all. Councilmember Nand said her personal preference would be to amend the CFP/CIP to delay the project. She was unsure about a volunteer effort and the level of expertise that would be required to make this a recreational property. Councilmember Tibbott commented this seemed like an opportunity to experiment with volunteers lending their expertise for a property this size and the condition of the site. He expressed support for the motion, anticipating some headway could be made in planning and reduce the amount needed to pay a consultant in the future. Councilmember Paine asked if volunteers were used to rehabilitate the Johnson property, who would monitor volunteers, and what is the liability for the City. Ms. Feser asked if the intent was to use volunteers for construction or design. This project is $100,000 for master planning the site and expertise is required due to a lot of technical issues. Even with simple improvements to the site such as a parking lot, that impervious surface requires stormwater drainage which requires a permit which requires engineered drawings. The City's permitting process includes environmental protection. At some point design professionals have to be involved to move forward with even the simplest improvements. Councilmember Paine said she was unsure the council has enough information regarding how volunteers want to spend their time, particularly if it cuts into their professional time. Master planning is very specific and requires stamped drawings. She anticipated using volunteers would not be the most efficient as they still have to be monitored. It is an interesting idea, but she was unable to support it because it was unlikely to have a net positive effect and may put the project behind. Councilmember Eck commented even if the City found a master planning volunteer, a consultant would eventually be required to check the volunteer's work to ensure compliance. She asked if staff was Edmonds City Council Approved Minutes November 12, 2024 Page 17 comfortable pushing the $100,000 out 1-2 years. Ms. Feser answered pushing the funding out a couple years is acceptable as the site is secure. The next step is planning and eventual development, but there is no time limit or requirements on the donation regarding when improvements have to be built. The project can sit until funding is available. Councilmember Dotsch commented the use of volunteers was an interesting concept; she envisioned a competition or naming rights. If the site was secure, delaying it a few years would not be problematic. She could support removing it from 2026 and adding funding in a different year. Council President Olson commented zeroing out the funding does not commit the City to anything other than not spending the money in 2026. There are still options regardless if the council does nothing or proceeds using volunteers; if council supports the motion, no money would be spent between now and 2026. Councilmember Chen asked if pushing the funding out and not doing any design would allow the site to be opened to community members for a community garden. Ms. Feser answered that was a challenging question, providing public access to the site without parking, water, and no built spaces for gardens; consideration would have to be given to liability. Councilmember Chen said based on the information, he will support motion as there is no harm in delaying the project. Councilmember Nand suggested when the council considers amendments to the CFP/CIP, Council President Olson propose delaying this project for a couple years and providing further information about the possibility of using volunteers. Without that information, she did not support the motion. MOTION CARRIED (5-2), COUNCILMEMBERS PAINE AND NAND VOTING NO. Discontinue Parks Communications and Community Engagement Program — Amendment #C5 COUNCIL PRESIDENT OLSON MOVED, SECONDED BY COUNCILMEMBER CHEN, TO DRAMATICALLY REDUCE THE PARKS, RECREATION AND HUMAN SERVICES COMMUNICATION & COMMUNITY ENGAGEMENT PROGRAM, ELIMINATING ALL ITEMS EXCEPT FOR THE CRAZE PROGRAM GUIDE. Council President Olson commented there is a citywide PIO. Although she recognized the importance of getting the word out about parks, she hoped to reduce staffing for communications. She acknowledged the City sends postcards to the community informing them of the online link. In addition to programs being a service to the community, the programs generate revenue. She was not proposing get rid of the effort that goes into developing the Craze, but moving it to the PIO or Parks doing that one part and having all the media releases handled by the PIO or other staff members, and no longer having this program. She acknowledged fewer things will get done. Ms. Feser responded when this amendment was proposed, all the information was not available. She displayed and reviewed the following which she emailed to councilmembers earlier today. r Communications & Engagement Program BARS EXPENDITURES !T 20I8 N— % mg b37, 2, ny sii Ne a Benelrts $ 25 839 326,885 Drecbr 10% :=63557x Sa1NNsa S@rNtee f 3.387 S 3.533 N-1S—Program lag, 2% mg e. n+an,. SakrieeB Berw7a S 19833 S 20.707 Deputy Pre W 8% ,Om e.S+srovo SNerite a Baaft S 1.B22 s 2010 Pens Ma—.--.gx 1% ,om e.5n aan SNalmaBaNfa s 3a.g36 3 35.607 Reneetwn Coord � Onlme C RAZE PN .— 20% ,om a.57+anar Salalesa Barfes S 56.606 S 62.a85 Recrwwn Coed-S-0I EmRI+Flyae 40% ogg e.571ao.. Sa—a a.." ;S 7.a03 S 7.773 F—Deek RapllmNt 15% aamcovl.acr.an 'f 120 S 124 Carve SulNupYXI 1008. aa2m CPmnviieasaq S 215 S 221 OR Cove GaNvaOer 100% aamCtamxaecaXne f SES S 603 C_ON. lloeeng 100% a.2m Co,marieeOON f 1.350 S 1.301 Canpae CaRmt EmYN Mg 100% 22 a+ Adve UM f 250 S 250 Pull Spbeapmn EdI—w S." DNt. 100% 512,270 . Salary & Benefits • Cell Phones/lpads/Faa Mamme Revenue Generation (Marketing) 52,681 Edmonds City Council Approved Minutes November 12, 2024 Page 18 The new budget approach brings forward information in programs instead of a line item budgeting like was done in the past. Staff was asked to provide how the department functions based on resources which includes direct costs related to activities and staffing for those activities. This is an example of the $178,0000 allocation, but only a fraction is related to Craze; $152,000 is employee salary and benefits based on staff allocation to engage in communication. For example, 10% of her time is communication with the public, councilmembers, individuals, other entities, etc. It isn't practical to eliminate 10% from the director's salary and expect her not to talk to anyone. The new format in the budget process is different than in the past. The Parks communication program is staff time spent with the public responding to questions about programs, rentals, parks and overall feedback, encampments, litter, garbage, vandalism in parks, staffing Frances Anderson Center front desk, listening and responding to council feedback, proactive communication around upcoming events, parks maintenance, volunteer activities, safety concerns, tree removal in parks, etc. If Parks does not do proactive communication around a tree being cut in a park, staff spends time the following week answering emails and phone calls. It also includes development of the Craze, gathering and compiling that information. Ms. Feser continued, even if production of the Craze was transferred to the PIO, Parks staff would still develop the information and give to the PIO, requiring almost more time to managing that information. It is also how Parks generates revenue, database management and marketing which drives revenue from facility rentals and program registrations. It includes design and production of printed materials related to closures in parks and distributed by the Edmonds School District, posting rentals at shelters and fields, and staff cell phones. Cell phones are how maintenance staff get City communications via email; there are currently 2 desktop computers for 19 maintenance employees. It is also a safety and emergency link should a staff member get hurt or have an issue. They also document issues in the field such as before and after photos of work as well as take photographs of an issue in the field, send it to the supervisor for direction rather than the supervisor travelling to the site. Councilmember Nand commented when the council looks at the 250-270 City employees, it seems redundant for the Police Department and City Hall to have a PIO and Parks to have its own communications program, but looking at the different functions, it makes sense to have an embedded communications arm for each department with PIOs and communication staff who have subject matter expertise. Her biggest concern in removing this $178,000 was the severe affect it would have on revenue generation and the City's reputation as safe and comfortable place to visit. She was concerned about the tourism aspect for small business and concluded from Ms. Feser's explanation that the $178,000 was a good investment. She did not support the motion. Councilmember Eck appreciated this coming forward to allow the council to have this conversation and learn more about it. Based on the information provided, she was not able to support the motion. Councilmember Chen said when he first saw this in the budget book, his impression was there was a dedicated FTE working on this and his logic was to eliminate the position and share the work with other departments. With Ms. Feser's clarification, he cannot support the motion. Council President Olson did not support the motion. She thanked staff for the detailed program information which was not available when she submitted the amendment. MOTION FAILED UNANIMOUSLY. Police Leadership Structure — Amendment #C6 COUNCILMEMBER CHEN MOVED, SECONDED BY COUNCIL PRESIDENT OLSON, TO RESTRUCTURE THE POLICE DEPARTMENT LEADERSHIP STRUCTURE TO BETTER ALIGN THE MANAGEMENT NEEDS OF ONE POLICE CHIEF AND ONE ASSISTANT POLICE CHIEF. Edmonds City Council Approved Minutes November 12, 2024 Page 19 Councilmember Chen acknowledged the wonderful staff on the team, commented this was a difficult decision to have. However, there is currently one police chief, two assistant police chiefs and three commanders, a total of six positions in the leadership team who are doing a wonderful job. Chief Bennett's plan to retire in 2025 presents an opportunity to restructure. He estimated this would save $310,000. COUNCILMEMBER TIBBOTT MOVED, SECONDED BY COUNCIL PRESIDENT OLSON, TO AMEND TO ELIMINATE THE LAST PART OF THE MOTION "OF ONE POLICE CHIEF AND ONE ASSISTANT POLICE CHIEF." Councilmember Tibbott supported the idea of directing the mayor to restructure the Police Department to better align with management needs. This is an appropriate administrative function and it would be useful for the mayor to look at the Police Department structure. Other restructuring may occur as a result of working with Police Department staff. Councilmember Paine asked if Chief Bennett was available. Mayor Rosen advised she was not. Councilmember Paine commented there was some information in the budget queries including command structure comparisons, but the council needs further information. COUNCILMEMBER PAINE MOVED, SECONDED BY COUNCIL PRESIDENT OLSON, TO TABLE TO THE NEXT BUDGET DISCUSSION. Councilmember Paine commented there are a lot of questions about this proposal and it has big community impacts. Mayor Rosen relayed Chief Bennett announced her retirement two weeks ago. He is planning to look at restructuring the Police Department as well as other departments. If he does not make a recommendation soon enough or if the council doesn't like his recommendation, they could move forward. Councilmember Nand thanked Councilmember Chen for this painful but necessary conversation. She supported the motion to table to the next meeting. She recognized it was the mayor's purview to manage staff, but suggested having a representative from the Police command structure and from EPOA present at the next budget discussion to answer questions would be very useful for the public and council. She remarked the council is seeking accountability and transparency for its constituents in all their budget decisions and there is very little that City government does that is more important than public safety. MOTION CARRIED UNANIMOUSLY. Remove Council Contingency Funding of $10,000 — Amendment #C7 COUNCILMEMBER CHEN MOVED, SECONDED BY COUNCILMEMBER NAND, TO REMOVE COUNCIL CONTINGENCY FUNDING OF $10,000 AND ROUTE IT TO GENERAL FUND. Councilmember Chen commented although there is a remote possibility the city council would have an emergent need for contingency funds, if that happened, the council could ask for funding at that time. Council President Olson provided an example of things on her radar regarding possible uses of these funds, expiration of the inhouse fire option as a backup plan for fire service. She understands this proposed amendment and will support it as she realizes the City isn't flush and there isn't $10,000 sitting around. The council will plan on not using these funds until it's needed and then will need to find the money. Councilmember Nand commented the council could not ask every other part of City government to tighten their belts and not do it themselves. If there are new councilmembers next year, they will likely have to self -fund their training. Edmonds City Council Approved Minutes November 12, 2024 Page 20 Councilmember Eck asked about common uses of the council contingency fund. Council President Olson clarified miscellaneous contains funds for training; training is not funded by the council contingency. The council contingency has been used for unplanned things that happen. For example, exploring the inhouse option for fire is not funded anywhere else in the budget so if that comes up, there is no funding for it. Ms. Dunscombe said the council could offer to fund the Planning & Development permit fee rate study from council contingency. In her experience, the council contingency is usually spent on a study that pops up during the year and the funds can very useful to respond to needs. Mayor Rosen provided an example, Mike Bailey was funded from the council contingency. Councilmember Nand thanked Council President Olson for clarifying that council contingency did not include training. She plans to suggest eliminating council training due to the significant reduction in staff training. MOTION CARRIED (6-1), COUNCILMEMBER DOTSCH VOTING NO. Reduce City Hall Operations to 32 Hours a Week Except for Police, Court and Wastewater Treatment — Amendment #C8 COUNCILMEMBER CHEN MOVED, SECONDED BY COUNCILMEMBER NAND, TO REDUCE CITY HALL OPERATIONS TO 32 HOURS A WEEK EXCEPT FOR POLICE, COURT AND WASTEWATER TREATMENT PLANT. Councilmember Chen described the logic behind this amendment; the City is experiencing a significant budget shortfall and this approach could save $2.5M in salaries alone. He anticipated this approach would result in a team spirit, like we are all in this together and rolling up our sleeves, doing more with less, and being more creative to help the City get through this difficult period of time. This is one approach; another could be laying off certain positions. It is a difficult conversations to have, but it is a way to demonstrate to the citizens that the city management team is doing what they can so when the City asks for a $1 OM levy lid lift, they know the council and administration have everything they can and will approve a levy. Councilmember Paine relayed her intent to propose a motion next week to reduce City Hall operations to 35 hours. There will be a lot of business planning around a 32 or 35 work week and there needs to be more details provided such as the impacts to allow the council to have a fuller discussion. She agreed commanders and uniformed officers, the court and the WWTP would be exempt. She envisioned a 35 hour work week would be doable for all employees, noting it would have to be negotiated because much of the City's workforce are union employees. COUNCILMEMBER PAINE MOVED, SECONDED BY COUNCIL PRESIDENT OLSON, TO TABLE THIS UNTIL NEXT WEEK. MOTION CARRIED (5-2) COUNCILMEMBERS CHEN AND NAND VOTING NO. Alien the Authorized Positions (Pace 40 of the Budeet Book) with the Budeeted Waees and Benefits b Department — Amendment #9 COUNCILMEMBER CHEN MOVED, SECONDED BY COUNCIL PRESIDENT OLSON, TO ALIGN THE AUTHORIZED POSITIONS ON PAGE 40 FO THE BUDGET BOOK WITH BUDGETED WAGE AND BENEFITS BY DEPARTMENT. Ms. Dunscombe agreed the proposed budget was unclear regarding what positions were being unfunded. She explained the decision is whether to have unfunded positions left as an authorized FTE, but not funded or filled for the next biennium, or decide whether to abrogate a position. That would make the FTE tables, the org charts within each department and the dollars associated with it in the department budgets more clear. She referred to an email with a list of unfunded positions which was further divided into vacant and potential layoffs; in the proposed budget, those are identified as unfunded. If no further statement is made Edmonds City Council Approved Minutes November 12, 2024 Page 21 with regard to abrogating the position, they would be retained in the adopted budget as unfunded. Clever ways have been devised to identify those positions in the org chart, in the FTE table and the ordinance accompanying the budget to clarify which positions are unfunded. She suggested the council clarify positions they wanted to unfund or abrogate. Councilmember Chen expressed appreciation for the spreadsheet of unfunded positions. Councilmembers who received that email appreciated the communication and know the intent and reality, but for the public reading the budget book and the proposed positions, it does not support the actual budget. Mayor Rosen reiterated the budget book isn't revised during the review process. Councilmember Chen explained if the council adopts this motion, the final budget book will reflect it. MOTION CARRIED UNANIMOUSLY. Restructure the Parks' Department Leadership Structure to Better Align with the Management Needs of One Director Position — Amendment # 10 COUNCILMEMBER CHEN MOVED, SECONDED BY COUNCIL PRESIDENT OLSON, TO AMEND TO RESTRUCTURE PARK'S DEPARTMENT LEADERSHIP STRUCTURE TO BETTER ALIGN THE MANAGEMENT NEEDS FOR ONE DIRECTOR POSITION, BASICALLY ELIMINATING THE DEPUTY DIRECTOR POSITION. Councilmember Chen commented Deputy Parks, Recreation and Human Services Director Shannon Burley is one of the best employees in the City. However, looking at the realities, Parks reduced 12.99 FTE and over $ 1 M in programs. The City's budget situation requires looking for any redundancies. He hoped other departments such as the WWTP or Public Works would have the ability to absorb the talent and retain good employees. He acknowledged this was a very difficult motion to make and requested Ms. Feser's feedback. Ms. Feser referred to her email to council and reviewed the following: Staff Reduction/Programs • Program Assistant within Admin offices Concessions Year 2019 $ Revenue 50.000 • Changing model of programming —contracted services 2025 S 122,670 Increase S 72,670 145% Position Contribution • Deputy Director Innovation/Private Sector approach Long Term Leases 2019 $ 185,000 • City's Special Events —Economic driver increase 2025 $ $ 275.768 90.768 49% • Reorganization — all Special Events from Economic Development & Community Services Dept Rentals 2019 S 153.000 • Human Services program/Snohomish County 2025 S 241,000„crease • Recreation Division $ 88.000 58% • Departmental marketing and promotions Sponsorships 2019 S 4,350 • Budget (operating and capital) accounting (Excel) 2025 $ 15.000 • Collaboratively other departments Increase $ 10.650 245% • Finance • Police Public Works _ • ' • Human Resources Ms. Feser explained to address changing the program model from City staff running programs to contracted services, the City will still be providing a lot of programming but just via a different model. With the department cuts that were made, Parks laid off 11 FTEs and an additional 12 part-time positions. One of those was a program assistant that works in the front office that was felt could be absorbed by other recreation staff, herself and Ms. Burley. She described what the deputy director position contributes to the department. Edmonds is very fortunate to have someone very innovative who brings public sector experience into the workplace which has completely changed the Parks & Recreation Department. For example, the model of the Yost Pool operations was changed; the YMCA used to run the pool and paid the City about $12,000 year with very limited operations, the City had to deal with a lot of phone calls due to the limited services provided such as not being open on the weekends, etc. The YMCA no longer wanted to operate the pool and Ms. Burley recruited Cascade Swim Club who pays the City $90,000/year which covers all the pool costs, provides water safety training for the community, programing for adults and youth and a recreation program, is open on the weekends, and year-round. Edmonds City Council Approved Minutes November 12, 2024 Page 22 Ms. Feser continued, field and shelter rentals have skyrocketed since the approach was changed. Prior to Covid, Parks generated about $150,000 from rentals; that is projected to be $240,000 next year based on changing the way the program operates. Shelter rentals were previously done by hand, one person at the desk with paper and a calendar one person at a time. It opened on a certain day and people lined up on Main Street to make their reservations. That program is now online. Ms. Burley was a senior vice president of marketing and business operations for the professional women's basketball team Seattle Storm and brought that skill set to the Edmonds Parks Department, completely changing the way it operates, resulting in revenue positive programming. Ms. Feser continued, Ms. Burley's skill set also extends to special events run by the Chamber and other organizations. Edmonds has iconic events including the Arts Festival, Taste of Edmonds, 4t1i of July, Tree Lighting, Halloween, etc., all of which function flawlessly due to her managing the contracts and programs. Taste went into Civic Park for the first time this year with not one issue, not even dead grass. Parks is proposing to the mayor to reorganize so that all special events come to the deputy director and not to Economic Development & Community Services to allow that staff to focus on building economic development programs in the City which is part of the long term solution for the fiscal issue that exists. The deputy director also oversees the human services program and is the conduit to Snohomish County for all the programming, including the hotel on Highway 99. Edmonds has one of the most efficient, unique human resources programs in the county with only 1.5 people. Ms. Feser continued, the deputy manages the recreation division, handles all departmental marketing and promotions. The City's Eden software is terrible for tracking expenditures and revenues for programs; the hundreds of transaction every year for Parks are tracked in Excel, entered by hand by the deputy director which is how Parks is able to maintain budgeted expenditures and prove it can build revenue positive programs. Without that position, that will all go away. Parks has a great, collaborative relationship with other City departments including Finance, HR, Police, and Public Works. Public Works has an accountant on staff to manage their capital projects; Parks does not, the deputy director does that. She referred to the chart illustrating the difference in revenue generating programs 2019 compared to 2025, all managed by the deputy director. COUNCIL PRESIDENT OLSON MOVED, SECONDED BY COUNCILMEMBER NAND, TO EXTEND TO 10:20. MOTION CARRIED UNANIMOUSLY. Ms. Feser continued, reviewing the following: Deputy Director, Parks, Recreation & Human Services S—W Events, 10% Com cauws8 Comm�msyEngagemere Boa.ds & Corm Deputy Director Administrative Time Allocation MemotlalG.h— Prageam.10% (Lease. Agreements & Day to Day). 5% Co--I.- 1_1.drngpool).15% Revenue Germ o.n _.''_ Fac4ay a,d F%ld Remals. 10% Revenoe Gemnation Pnsanel ` Payabl.& Programs. Classes, Mapagemem, P",,AIApproval Ac__10% 5% &Praogssing. 5% eralmg g C. Id I Budget, d0% eN Staff allocate their time by program. The most important on the above pie chart is administration which was further broken down into another pie chart. Everything on the left side of the pie chart was revenue generating in addition to budget management. The above pie chart illustrates all the tasks the deputy director Edmonds City Council Approved Minutes November 12, 2024 Page 23 does and manages to help the department be successful. Without the deputy director position, it would be impossible to perform at the current level, the director's position would change significantly, requiring her to take over a lot of these responsibilities, resulting in a reduction in Parks capital programs, grant writing, and work she does external to the City as part of strategic planning. Councilmember Nand thanked Councilmember Chen for prompting a very necessary but unpopular, harsh and painful discussion. There are 22 people in the City who have been told their positions are unfunded. There are City employees who cry at council meetings. Councilmember Chen's proposed amendments in total which would potentially save the City millions in 2025 and possibly 2026 and save people's jobs, however, the administration needs an opportunity to consider his proposals, and respond. She would like to have representatives from the Police Department present next week when the council discusses changing their leadership structure. She appreciated Parks attending in person tonight to answer the council questions especially about the 32 hour work week which would change the calculus of whose jobs can be saved versus who gets a pink slip at Thanksgiving and is looking for a new job January 1. COUNCILMEMBER NAND MOVED TO TABLE TO NEXT WEEK. MOTION FAILED FOR LACK OF A SECOND. Council President Olson relayed she also thought this was something the council should think about, but moved away from that during the course of this week. The council has a very difficult task, if there was any capacity, especially at the top where the bigger salaries are, the council has to think about it. She was sorry to put staff through this, the ones whose positions have already been identified to be cut and specifically the deputy director because it is so painful and awful. She commended councilmembers for their politeness, acknowledging these are very difficult conversations. It is brave to propose unpopular amendments, but the council has to think about the bigger picture related to retaining quality talent. Institutional knowledge is almost irreplaceable. With regard to the 32 hour work week, she recognized a lot people cannot take that cut and continue in their career. She loved the idea of offering a 32 hour week and not mandating it, anticipating there may be people who would love to have a part time job with full-time benefits. Council President Olson continued, this conversation has been confidence building for council and the public, that staff and mayor are working diligently to redirect resiliency and finding new revenue sources. She commended the deputy director for finding more revenue, noting some of the examples provided exceeded her salary. She did not support this motion and encouraged the council to find another way, anticipating the City would lose money in other ways by saving that salary. Councilmember Paine commented when the council first started reviewing the proposed budget, one of her observations was deputy directors or assistant chiefs and the need for a proper defense for keeping those positions. A lot of the lower salaried positions haven't been filled or are on the layoff list. She appreciated staff defended the position when she asked a question via the budget query process. She commended Ms. Feser for describing reasons for retaining this position, commenting it was as much based on the quality of the work provided as the revenue generated. She did not support the motion. Councilmember Eck said she did not support motion. When thinking about comparable conversations she has had in her career, it is mainly focused on the position and not the person currently in the position. She truly believed these conversations were not intended to be personal or targeted, but they are personal because the council is making decisions that affect people's lives. From Ms. Feser's explanation, it is clear the revenue generation is impressive for which she thanked Ms. Burley. She asked if the deputy director won the lottery tomorrow and there was someone else in that role, would Ms. Feser's expectations for that role change based on the performance of the current deputy director. To make it objective, she suggested looking at the position itself and not necessarily the successes of that position because ultimately it could be anyone in that role, not just the current deputy director. The council should be looking at slices of leadership and ratio of leadership to staff. These conversations are not fun but they are necessary. She Edmonds City Council Approved Minutes November 12, 2024 Page 24 expressed appreciation for Ms. Feser being prepared to speak to this and providing thorough information which is why she feels comfortable making a decision tonight. Councilmember Dotsch agreed the council is having hard conversations and everyone has been very professional while the council looks for ways to keep the City solvent. In discussions and emails, some positions are very impactful especially with the right person. She has heard nothing but incredibly positive feedback about the deputy director. Earlier tonight staff presented the Economic Development element of the comprehensive plan which emphasized the need for revenue and continuing what makes it special, including events that bring visitors to Edmonds. She was interested in exploring the reduced City Hall hours but did not support this motion. Councilmember Chen expressed appreciation for the information that had been provided. He knows how capable and valuable the deputy director is, and the information provided indicates the revenue and the impact she has on the City outweighs the cost. COUNCILMEMBER CHEN WITHDREW THE MOTION WITH THE CONSENSUS OF COUNCIL. Remove Parks Communications & Community Engagement Function — Amendment # 11 Councilmember Chen withdrew this amendment as it was already discussed as part of Amendment #C5. 11. COUNCIL COMMENTS Councilmember Nand commented even though the council was trying to talk about a position and not an individual, she received multiple communications from the public about the impact Ms. Burley has had on the community, staff and the public and pleading not to let her go. The value she has added to Edmonds is immeasurable. Councilmember Paine commented this is hard; it is much easier when there is money to spend. She appreciated everyone's grace while the council does its job. She recognized there will be a lot of changes for the next 6 months and there will be conversations like this the entire time. Council's oversight role is important and one the council takes it very seriously; in addition, building a biennial budget is a new experience for everyone. She expressed appreciation for the time and dedication poured into the budget and for everyone's work. Councilmember Dotsch echoed previous councilmembers, this process is incredibly difficult, and the council needs to find ways so that the City does not become insolvent. This is just the beginning, having discussions and providing feedback will help the council be more informed as they make decisions. This is a group effort to keep everyone informed about what goes on in the City. The council takes this very seriously and are trying to do what is best for the community and residents during the process. She appreciated everyone being open to discussions on difficult subjects. Council President Olson thanked all veterans for their service; yesterday was Veteran's Day. Tomorrow morning is the monthly Morning Buzz for the Edmonds Chamber of Commerce at the Yacht Club starting at 7:30 am. Councilmember Chen relayed his thanks to City staff and councilmembers for working on this very challenging and difficult budget. The council is facing a real challenge; in 2027 the City cannot rely on passing a levy lid lift. If the levy lid lift is rejected by the voters, the City will become insolvent. That is the real challenge that everyone is facing together. He assured his budget amendments were not targeting any individuals, but looking at every opportunity. He was sorry to put Ms. Burley through that process, assuring it was not personal. He was aware of her capabilities and love for the City and appreciated the work she Edmonds City Council Approved Minutes November 12, 2024 Page 25 and Ms. Feser do. He was hopeful through this discussion resident will realize the council is taking this process seriously and when the council asks for a levy lid lift, the residents will buy into investing in the City's future and a prosperous, loving community. He was confident about going through these difficult times together and coming out stronger. Councilmember Eck reported it was her joy and honor to be invited to Edmonds Elementary last week for their Veteran's Day Celebration and thanked the students, families and veterans who attended. She referred to empathy, commenting that word has come to the forefront of her mind several times in different contexts over the last few weeks. She urged the community to give City staff grace and empathy as we continue the budget process. The budget process affects staff who take their job very seriously and work hard every day to keep the City running. She expressed her deep appreciation, reiterating the need to keep empathy in the forefront of minds during these conversations. 12. MAYOR'S COMMENTS ADJOURNMENT With no further business, the council meeting was adjourned at 10:19 pm. so-:t SCOTT PASS EY, CLERK Edmonds City Council Approved Minutes November 12, 2024 Page 26