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2026-06-16 Council Special PacketEdmonds City Council Agenda June 16, 2026 Posted: 6/15/2026 4:19 PM Page 1 Agenda Edmonds City Council Special Meeting Council Chambers 250 5TH AVE NORTH, EDMONDS, WA 98020 ZOOM: HTTPS://ZOOM.US/J/95798484261 PHONE: +1 253 215 8782 MEETING ID: 957 9848 4261 JUNE 16, 2026, 5:30 PM 1. CALL TO ORDER 2. COUNCIL BUSINESS 1. Board/Commission Appointment Interviews First Reading – Mayor's Office (30 minutes) 2. Letter to Everett City Council and Everett Mayor from Edmonds City Council and Edmonds Mayor First Reading – City Council Office (15 minutes) ADJOURNMENT For disability accommodations, materials in alternate formats, accessibility information, or language interpretation/ translation needs, please contact the City Clerk at 425-775-2525 at your earliest opportunity. Providing at least 72-hour notice will help ensure availability. City Council Agenda Item 2.1 June 16, 2026 - Special Meeting TITLE:Board/Commission Appointment Interviews (First Reading) DEPARTMENT:Mayor's Office PRESENTER:Lisa Takach, HR Director NEEDED FROM COUNCIL:Input RECOMMENDATION:Interview Mayor’s appointments to the Salary Commission (Alica Kone and Jerry Masters) BUDGET: Total Dollar Amount:N/A ☒Approved in Budget Fund(s):N/A ☐Budget Reallocation Required ☐No Budget Impact PROBLEM/ISSUE STATEMENT: Council will interview the appointees and will vote on their confirmation on the June 23, 2026 consent agenda. CONTEXT, ANALYSIS, & ALTERNATIVES: The Salary Commission positions were advertised May 13, 2026 with an application deadline for May 29, 2026. Five applications were received and reviewed by Mayor Rosen. Mayor Rosen is appointing two candidates to serve on the Commission; Alicia Kone and Jerry Masters. RECOMMENDATION: Interview Mayor Rosen’s appointments to the Salary Commission (Alica Kone and Jerry Masters) BUDGET IMPACTS: No budget impact. ITEM HISTORY: Ordinance 4372 was passed by City Council on December 12, 2024, suspending for two years the regular meetings of city boards and commissions that are not required to operate under state law and making related provisions for special meetings and tolling / extending of terms. On May 12, 2026 Council adopted Ordinance 4435, resuming the Salary Commission and designating their duty to meet during even numbered years between July 1st and September 30th to review the salaries paid by the city to each elected city official, except the salary of the municipal court judge. There are two vacancies on the Salary Commission, one created by a term expiration and the other by resignation. ADDITIONAL INFORMATION: Item 2.1 Packet pg. 2/9 ATTACHMENTS: redacted application for Alicia Kone redacted application for Jerry Masters Item 2.1 Packet pg. 3/9 Item 2.1 Packet pg. 4/9 Item 2.1 Packet pg. 5/9 City CouncilAgenda Item 2.2 June 16, 2026 - Special Meeting TITLE:Letter to Everett City Council and Everett Mayor from Edmonds City Council and Edmonds Mayor (First Reading) DEPARTMENT:City Council Office PRESENTER:Michelle Dotsch NEEDED FROM COUNCIL:Action RECOMMENDATION:Council will review the draft letter and take action to send the letter in a final draft form. BUDGET: Total Dollar Amount:0 ☐Approved in Budget Fund(s):N/A ☐Budget Reallocation Required ☒No Budget Impact PROBLEM/ISSUE STATEMENT: The City Council of Edmonds and Edmonds Mayor are reaching out to you expressing a sense of urgency regarding Everett's recent deliberations concerning utility taxation and regional water policy. We do so for three reasons: to correct the public record, to express our serious concerns regarding the proposed utility tax on non-resident customers, and to request renewed collaboration with the regional jurisdictions that depend upon Everett's wholesale water system. CONTEXT, ANALYSIS, & ALTERNATIVES: Edmonds City Council is drafting a letter to the Everett City Council and Everett Mayor, regarding Utility Tax Proposal, Regional Water Policy, and Impacts on the City of Edmonds. RECOMMENDATION: Council will review the draft letter and take action to send the letter in a final draft form. BUDGET IMPACTS: None ITEM HISTORY: None ADDITIONAL INFORMATION: ATTACHMENTS: Draft of letter from Edmonds City Council and Edmonds Mayor to Everett City Council and Everett Mayor. Item 2.2 Packet pg. 6/9 June XX, 2026 Members of the Everett City Council Honorable Mayor Franklin 2930 Wetmore Avenue Everett, WA 98201 RE: Utility Tax Proposal, Regional Water Policy, and Impacts on the City of Edmonds Dear Councilmembers and Mayor: The City Council of Edmonds is reaching out to you expressing a sense of urgency regarding Everett's recent deliberations concerning utility taxation and regional water policy. We do so for three reasons: to correct the public record, to express our serious concerns regarding the proposed utility tax on non-resident customers, and to request renewed collaboration with the regional jurisdictions that depend upon Everett's wholesale water system. First, during the May 27, 2026 Council deliberation on CB 2605-27, the City of Edmonds was cited as an example of a municipality that imposes a utility tax on customers outside its municipal boundaries. We respectfully clarify that this characterization is incorrect. The City of Edmonds imposes its utility tax only on customers located within Edmonds city limits. The tax supports Edmonds' General Fund and is not imposed on residents of neighboring jurisdictions. Because this statement was made during official council deliberations and may have informed discussion of the proposed ordinance, we believe it is important that the record accurately reflect Edmonds' actual policy. Second, Edmonds shares the concerns raised during Everett's public hearing by the Washington Association of Sewer and Water Districts and by counsel representing Alderwood Water & Wastewater District. We are troubled by the prospect of Everett imposing a utility tax on water service provided outside Everett's municipal boundaries when the proceeds are intended to support Everett's General Fund rather than the operation, maintenance, or capital needs of the water utility itself. Imposing a municipal revenue measure upon customers who have no electoral representation in Everett and no ability to participate in Everett's fiscal decision-making raises significant concerns regarding intergovernmental cooperation, accountability, and the long-standing principles that govern regional utility service relationships. Third, this proposal cannot be viewed in isolation. It arrives at the same time regional wholesale customers are confronting the unprecedented impacts of Everett's 2025– 2026 wholesale water rate increase. The City of Edmonds recognizes the importance of maintaining and improving critical regional water infrastructure. Our concern is not with prudent capital investment itself, Item 2.2 Packet pg. 7/9 but with the financing approach being employed. Regional wholesale customers are being asked to absorb an approximately 145% increase in wholesale water rates over a compressed period of time. Such an increase is extraordinary by any municipal utility standard and effectively requires today's ratepayers to finance a disproportionate share of long-lived capital assets that will provide service benefits over many decades. Sound utility finance principles generally seek to align the recovery of capital costs with the useful life of the infrastructure being constructed, ensuring that costs are distributed equitably across current and future beneficiaries. The current approach risks shifting what are traditionally long-term capital obligations into short-term cash requirements borne primarily by present-day wholesale customers. As you know, Alderwood Water & Wastewater District is currently challenging the wholesale rate increase, and the matter remains unresolved. Nevertheless, the financial exposure facing Edmonds is substantial. As of November 2025, the estimated annual impact to Edmonds exceeded $1.4 million. If the increase is ultimately upheld, Edmonds residents may face significant rate increases, additional debt issuance, or both in order to absorb costs originating outside our community. While every municipality is confronting fiscal pressures, the magnitude and timing of these actions have compounded the burden placed on neighboring jurisdictions and their ratepayers. Edmonds itself has operated under a declared financial crisis for the past three years. We understand the difficult choices local governments face and recognize Everett's responsibility to address its own financial challenges. However, the combined effect of a proposed utility tax on non-resident customers and a substantial wholesale rate increase creates a cumulative burden that extends beyond typical utility cost adjustments. From Edmonds’ perspective, these actions raise broader concerns regarding regional cost allocation, predictability for wholesale customers, and alignment between infrastructure investment and long-term financing practices. If implemented as currently structured, these measures may require Edmonds to increase local utility rates, issue additional debt, or defer other critical community priorities to accommodate costs over which Edmonds residents have no direct representation. The relationship between Everett and its wholesale customers has historically been built upon cooperation, predictability, and mutual respect. Those principles are especially important as regional infrastructure needs continue to grow. Accordingly, the City of Edmonds respectfully requests that the Everett City Council: 1. Reconsider the proposed utility tax as applied to customers located outside Everett city limits; 2. Limit any utility tax adopted to Everett ratepayers who are represented within Everett's municipal government; Item 2.2 Packet pg. 8/9 3. Engage directly and proactively with Alderwood Water & Wastewater District and affected wholesale customers regarding the proposed tax, wholesale rate-setting methodology, and future capital financing plans; and 4. Evaluate alternatives that reduce the immediate financial burden on wholesale customers, including phased implementation, long-term capital financing, or other approaches that better align infrastructure costs with the useful life of the assets being funded; and 5. Establish a collaborative process that provides regional partners with sufficient notice and participation before decisions are made that materially affect their residents and utility systems. The City of Edmonds is currently preparing its 2027–2028 biennial budget and utility financial plans. Clear communication and meaningful regional coordination are essential as we evaluate the potential impacts of Everett's decisions on Edmonds residents and businesses. We remain committed to a constructive dialogue and hope Everett will work with its regional partners to identify solutions that recognize both Everett's fiscal needs and the long-term stability and equity of regional utility financing. Respectfully, Mayor Mike Rosen Council President Michelle Dotsch Councilmember Chris Eck Councilmember Will Chen Councilmember Erika Barnett Councilmember Vivian Olson Council Member Susan Paine Councilmember Jenna Nand Item 2.2 Packet pg. 9/9