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03/17/2015 City Council MinutesEDMONDS CITY COUNCIL APPROVED MINUTES March 17, 2015 The Edmonds City Council meeting was called to order at 6:45 p.m. by Mayor Earling in the Council Chambers, 250 5th Avenue North, Edmonds. ELECTED OFFICIALS PRESENT Dave Earling, Mayor Adrienne Fraley-Monillas, Council President Kristiana Johnson, Councilmember (arrived 6:47 p.m.) Lora Petso, Councilmember Joan Bloom, Councilmember Thomas Mesaros, Councilmember Michael Nelson, Councilmember ELECTED OFFICIALS ABSENT Diane Buckshnis, Councilmember ALSO PRESENT Noushyal Eslami, Student Representative STAFF PRESENT Al Compaan, Police Chief Jim Lawless, Assistant Police Chief Don Anderson, Assistant Police Chief Phil Williams, Public Works Director Scott James, Finance Director Shane Hope, Development Services Director Frances Chapin, Arts & Culture Program Mgr. Jeff Taraday, City Attorney Linda Hynd, Deputy City Clerk Jerrie Bevington, Camera Operator Jeannie Dines, Recorder 1. MEET WITH SISTER CITY CANDIDATE ALICIA CRANK FOR CONFIRMATION TO THE ESCC At 7:00 p.m., the City Council met with Edmonds Sister City Commission candidate Alicia Crank. The meeting took place in the Jury Meeting Room, located in the Public Safety Complex. All elected officials were present with the exception of Councilmember Buckshnis. Mayor Earling reconvened the regular City Council meeting at 7:00 p.m. and led the flag salute. 2. ROLL CALL Deputy City Clerk Linda Hynd called the roll. All elected officials were present with the exception of Councilmember Buckshnis. COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO EXCUSE COUNCILMEMBER BUCKSHNIS. MOTION CARRIED UNANIMOUSLY. 3. APPROVAL OF AGENDA COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER PETSO, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. APPROVAL OF CONSENT AGENDA ITEMS Edmonds City Council Approved Minutes March 17, 2015 Page 1 Council President Fraley-Monillas requested Item D be removed from the Consent Agenda. COUNCILMEMBER PETSO MOVED, SECONDED BY COUNCIL PRESIDENT FRALEY- MONILLAS, TO APPROVE THE REMAINDER OF THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: A. APPROVAL OF CITY COUNCIL MEETING MINUTES OF MARCH 10, 2015 B. APPROVAL OF CLAIM CHECKS #213217 THROUGH #213329 DATED MARCH 12, 2015 FOR $660,479.25 C. CONFIRMATION OF ALICIA CRANK TO THE EDMONDS SISTER CITY COMMISSION E. APPROVING CHANGES TO CAPITAL PRIORITIES IN THE 2015 BUDGET FOR THE WASTEWATER TREATMENT PLANT ITEM D. AUTHORIZATION FOR MAYOR TO SIGN A PROFESSIONAL SERVICES AGREEMENT WITH MURRAY SMITH & ASSOCIATES FOR THE 2016 COMPREHENSIVE WATER SYSTEM PLAN UPDATE Council President Fraley-Monillas asked about the funding source. Public Works Director Phil Williams answered this is a carryover from last week's briefing on a problem with the K-Turbo blower at the Wastewater Treatment Plant (WWTP) that provides oxygen for biological treatment. The blower failed last year and needs to be replaced and was not included in the 2015 budget. Other projects have been delayed in completing their full scope so a budget amendment is not needed to increase spending authority in the wastewater fund to cover the new costs. This is merely authorization for the Finance Director to include an amendment in the first quarter budget amendment to recognize the new revenue from the partners in the WWTP. He recalled describing to the Council last week the two change orders that would be necessary to purchase and install and program this new equipment. The two change orders were provided to the Council at the dais. He reviewed Change Order No. 1; a contract with the State; Amersco is the contractor the State has assigned. The contract for $885,000 was approved and included in the budget; the change order adds $321,312 to cover the purchase of the blower from the supplier, Aerzen, installation, piping, plumbing, valving, design and guarantee. The cost will be paid back over time through energy savings. He reviewed Change Order No. 2; a $1.4 million contract with Parametrix to completely reprogram the City's Supervisory Control and Data Acquisition (SCADA) system, the computer and fiber optics that operate the plant. That equipment is about 23 years old and it is time for the hardware and software to be replaced. Change Order No. 2 adds $207,001 to allow Parametrix to incorporate the already approved blower and the new blower. Mr. Williams summarized: • The total includes all cost increases to replace the failed 250 hp K-turbo primary blower with the new 150 hp Aerzen Hybrid Blower • Total Cost $528,313 - Parametrix $207,001 - Amersco (State DOC) $321,312 • Total increase in WWTP capital spending in 2015 $500,000 • No increase in total Wastewater capital spending for 2015 • Seeking authorization for Mayor to sign the two change orders Edmonds City Council Approved Minutes March 17, 2015 Page 2 Mayor Earling reminded this was presented to the Council at the study session; the information regarding the change orders was inadvertently omitted. COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO AUTHORIZE THE MAYOR TO SIGN THE TWO CHANGE ORDERS. Councilmember Bloom observed the blower failed in slightly longer than five years and was no longer under warranty but it should have lasted 20-30 years. Recognizing this is a large amount of money, she asked whether there was any way to recover any of cost. Mr. Williams responded several repairs were made during the five-year warranty period. The blower would work for a while and then fail again; it limped along for the five years progressively getting worse to the point now it needs major repairs and the warranty period has expired. The vendor, a Korean company, is no longer in business; a US company purchased the technology but did not take legal responsibility for any existing installations. Staff is discussing with WCIA whether there is any insurance coverage; he will inform the Council of the outcome. Councilmember Bloom asked if there were other cities in similar position that are trying to recover funds from the Korean company. Mr. Williams answered this was an unusual thing; he was unsure why the blower failed. A lot of these blowers were installed 5-6 years ago due to the huge energy savings. This blower failed for some reason. Council President Fraley-Monillas advised she should have pulled Item E instead of Item D. Councilmember Petso asked whether the change orders were presented at the study session. Mr. Williams answered he provided the numbers at the study session but the change orders had not yet been executed by the contractor. COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO APPROVE ITEM D. MOTION CARRIED UNANIMOUSLY. For Councilmember Mesaros, City Attorney Jeff Taraday said a vote to reconsider is not necessary unless a Councilmember wants to vote against Item E because it was already approved on the Consent Agenda. Councilmember Bloom asked why Council President Fraley-Monillas wanted Item E removed from the Consent Agenda. Council President Fraley-Monillas responded she wanted to know the source of the funding. Mayor Earling advised staff requested Item E be removed to ensure all the information was available which is what Mr. Williams explained. COUNCILMEMBER BLOOM MOVED, SECONDED BY COUNCILMEMBER PETSO, TO RECONSIDER ITEM E. UPON ROLL CALL, MOTION CARRIED (4-2), COUNCIL PRESIDENT FRALEY-MONILLAS AND COUNCILMEMBERS BLOOM, PETSO AND NELSON VOTING YES; AND COUNCILMEMBERS JOHNSON AND MESAROS VOTING NO. COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER NELSON, TO APPROVE ITEM E. Councilmember Bloom said she moved for reconsideration so Council President Fraley-Monillas could get her questions answered. Council President Fraley-Monillas advised all her questions were answered. MOTION CARRIED UNANIMOUSLY. 5. OATH OF OFFICE FOR NEWLY PROMOTED POLICE SERGEANT Edmonds City Council Approved Minutes March 17, 2015 Page 3 Police Chief Al Compaan commented an oath is an important public recognition of personal achievement and a personal pledge to the highest legal, ethical and professional standards critical to the law enforcement mission. He described Sergeant Hawley's background, beginning his career as a police explorer, was hired as a reserve officer in 1999, and a full-time officer in 2001. He has degrees in criminal justice and law enforcement administration from Shoreline Community College and City University. From 2004 to 2011 he worked as a K9 handler with his partner Rocky. When Rocky retired in 2011, Sergeant Hawley was assigned as a fraud detective for a year and then promoted to corporal, returning to patrol in 2012. He received a new K9 partner, Kira, and was again a K9 handler until his assignment as detective corporal in January 2015. With his expertise as a dog handler, Sergeant Hawley has mentored and trained new K9 teams for the department including the current team of Officer Robinson and his partner, Hobbs. Sergeant Hawley has been honored with several letters of commendation and was the 2008 Chief Stern Memorial Officer of the Year. In 2011 Sergeant Hawley received a meritorious service citation for his partnership with Rocky. He is committed to the training and well-being of the department's officers. He has worked on implementation of a peer support program, has been a field training officer for new officers and rewrote the field training officer manual. For the last two years he has coordinated the annual award ceremony held each May during National Police Week. Upon his promotion, Sergeant Hawley has been named administrative sergeant which includes responsibility for records and the property room. With the June go -live date scheduled for the new computer aided dispatch and records management software, New World, he will have a big job. Sergeant Hawley introduced his family in audience, his wife Shelly, father Alvin and sister Shawn, and children Alison, Colt and Megan. Chief Compaan administered the oath of office to Sergeant Hawley. Sergeant Hawley's wife pinned his badge. Chief Compaan presented Sergeant Hawley with a framed Certificate of Promotion. Sergeant Hawley thanked everyone, particularly his wife who put up with him taking test after test and being grumpy due to stress as well as his children and family for their support. He also thanked his law enforcement family, stating he was honored to serve with them. Numerous police personnel and cadets were present in the audience. 6. AUDIENCE COMMENTS Val Stewart, Edmonds, wanted to raise citizens' awareness about the public comment to the Washington Department of Ecology (DOE) on updates to the City's Shoreline Master Program (SMP) to manage six miles of marine and lake shoreline within the City. The SMP would establish unique environmental designations for different types of shorelines with buffers and setbacks tailored to reflect existing land uses and ecological conditions, increase protection of nearshore habitats and encourage preservation of existing shoreline vegetation and help support the broader initiative to protect and restore Puget Sound. Comments will be accepted through 5 p.m. March 27, 2015 and should be addressed to David Pater, DOE. More information is available on the City's website under public notices; the draft SMP sent to DOE for review can be found by googling DOE and questions can be directed to Kernen Lien, Planning Department, or the contact at DOE. Taking public comments into consideration, the DOE may approve the approved SMP update as written, reject or identify specific modifications to meet the SMA and applicable state regulations. Ms. Stewart encouraged the public to review SMP agenda items in the City Council minutes of October 21 and November 18, 2014 which reflect the final stages of the process. On November 18, 2014 the City Edmonds City Council Approved Minutes March 17, 2015 Page 4 Council adopted a resolution of intent to approve the SMP which includes a provision that the Urban Mixed Use IV designation of the Edmonds Marsh require a buffer of 50 feet and a setback of 100 feet, residential use was not included in Mixed Use IV. The City intends to study the issues surrounding the Edmonds Marsh and related Urban Mixed Use IV interim designation for two years from the effective date of the SMP. At the end of the study period, the City will adopt appropriate shoreline environment designations for the area surrounding the Edmonds Marsh including evaluating whether a new designation is needed and whether the entire are should have the same designation. 7. PUBLIC FACILITIES DISTRICT (PFD)/EDMONDS CENTER FOR THE ARTS (ECA) UPDATE ECA Board President David Brewster and owner of Edmonds Bookshop with wife Mary Kay Sneeringer, said the membership of the ECA Board, currently 21 and counting, is made up of Councilmembers' friends, neighbors and local business associates. Along with their mix of skills and experience, they share a common passion for the mission of the ECA. Their standing committee structure that includes members of the PFD Board and several non -board member citizens, allows the creation of memorable experiences for ECA visitors as well as the larger constituency of business and political partners and the many students, families and seniors visited by artists in schools, hospitals and senior centers. They are proud of their commitment, together with staff and over 100 local volunteers to an institution that is both a leading economic driver and a cultural touchstone of the community. Joe McIalwain, ECA Executive Director, recognized Councilmember Petso who has been the liaison to the EPFD for many years and welcomed Councilmember Nelson to the Council. He provided the ECA's vision and mission: • Vision: A vibrant community in which the performing arts are woven into our daily lives and valued for their power to entertain, educate and inspire. • Mission: To celebrate the performing arts, strengthen and inspire our community, and steward the development and creative use of the ECA campus. He described the 2014-2015 season, commenting ECA was growing rapidly: • 31 presentations • 120+ rental events • Consistent classroom and gymnasium activities • Extensive family, education and outreach programs • Estimated 90,000 people served/year He identified key community relationships • Partnerships o CSO, Sno-King Chorale, OBT, DeMiero Jazz, Rick Steves' Europe o Sno-King Music Educators Assoc. o Sno-Isle Libraries — TedX o Fireshoe Productions o Puget Sound Partnership He highlighted the following financial performance: • 101 % growth in operating revenue — 2009-2014 • 59% growth in operating expenses — 2009-2014 • 19% increase in ticket sale — 2013-2014 • 26% increase in rental revenue — 2013-2014 • $82,500 in net revenue from operations since 2010 • $102,000 CBDG grant acquired — back -of -house restroom improvements to provide accessibility and improve functionality Edmonds City Council Approved Minutes March 17, 2015 Page 5 Mr. McIalwain provided a spreadsheet of operating income/expense, FY 2012 Actual, FY 2013 Actual, FY 2014 projected actual and FY 2015 forecast, highlighting revenue from ticket sales and fees, rental revenue, expenses for facilities/operations, labor costs, and other expenses. He provided a spreadsheet of non -operating income/expense: revenue and expense 2013 actual, 2014 projected actual and 2015 forecast. He explained when the PFD is unable to meet its obligation to pay the bonds, the contingent loan agreement allows the PFD to ask City for a loan to meet that obligation. He was encouraged the Tier 2 allocation from Snohomish County PFD is growing rapidly; it increased from $10,000 in 2014 to $50,000 in 2015. The forecasted loan from the City in 2015 will be $124,542, down from $167,000 in 2014. Mr. McIalwain relayed the estimated annual economic impact of ECA: $3,236,000 • Arts and Economic Prosperity o National economic study conducted by Americans for the Arts, the leading nation service organization for non-profit arts o Estimates the economic impact of non-profit arts organizations o Based on research finding from 156 communities and regions across America • Economic Impact of ECA in Edmonds o ECA creates jobs, generates tax revenues in Edmonds and Snohomish County o Arts tourism contributes to tax revenues on a local, state and national level o ECA Events generate - Jobs: 9 FT, 15 PT - Local government tax revenue: $132,000 - State tax revenue: $145,000 - Tourism: Just 35% of ECA attendees reside in Edmonds - Room nights: 450 (ECA booked 180 rooms to house artists this season) Julian Jones, Education and Outreach Manager, explained the ECA's education and outreach programs reach all ages and have expanded over the past two years. The ECA engages over 8,000 young people annual through: Education matinees o Series of theatre, music and science performances designed for students ranging from pre-K to 12`h grade o Tangible curricular ties and study guides for educators o Post show Q&As make the experience of a show more interactive for students o ASL interpretation is available for deaf and hard -of -hearing students "Arts for Everyone" o New program offering schools discounted tickets to ECA's Education Matinee Series shows o $2 tickets, as compared to regular $8 student ticket price o Priority to schools with greater than 30% overall rate of students participating in the free and reduced -price meal programs o Minimum of 20% of seats at each Education Matinee are reserved at this special rate o Made possible with the generous support of the Hazel Miller Foundation Artist residencies and outreach o In the schools: - 3,000 students engaged annually through free outreach programs - Partnerships with Edmonds School District o In the community: - Expanded outreach activities for older adults. Examples: Beatles Sing -a -long at Edmonds and Senior Center "Songwriting Works" songwriting for people with dementia in Edmonds City Council Approved Minutes March 17, 2015 Page 6 partnership with Aegis Living of Edmonds and Elderwise. The training program is free and open to the public. o Teacher Events - Professional Development - ECA approved to offer clock hour credits to teachers - Teachers' Night Out! - Educator Preview Event Family series o Four presentations in 2014-2015 for kids and families o Mission: Through theatre, music and interdisciplinary arts performances, the ECA Family Series engages children from a young age in diverse and existing arts experiences KIDSTOCK! o Free all -day family arts celebration o Over 2,000 people attended in 2015 0 2015 main stage artists: Recess Monkey, the Not -Its, Bailadores de Bronce, Book -It Repertory Theater and Alex Zerbe Summer Arts Enrichment Camps o Four 1-week summer camp session for ages 7-15 o Affordable day programs focused on connecting kids to professional performing artists 0 2015 Arts Enrichment Camps will include partnerships with: Book -It Repertory Theatre, Seattle Shakespeare Co., Bailadores de Bronce and Hawaiian and Polynesian Cultural Camp o New in 2015: The Nancy Bittner Scholarship Fund Mr. McIalwain explained Ms. Jones is an example of investments in additional labor costs that provides more capacity and education and outreach. He thanked her for joining the team and making a lot of this possible. To keep doing what the ECA is doing takes community support. He referred to, "Connecting Our Community through the Performing Arts," a synopsis of ECA and ways to support ECA that is used for fundraising and telling ECA's story when seeking sponsorship and other community support. He pointed out the ECA will celebrate its 10'h anniversary season in 2 seasons. The brochure represents what the ECA looked like in his head nine years ago. Mr. McIalwain thanked Mayor Dave Earling, Edmonds City Council, Citizens of Edmonds, volunteer Boards of Directors of Edmonds Public Facilities District & Edmonds Center for the Arts, Edmonds School District, ECA Staff, the 150 Volunteers, Partners and Rental Clients, Sponsors and Donors, Subscribers and Ticket Buyers. Councilmember Bloom asked how often the songwriting program via a partnership with Elderwise and Aegis of Edmonds will be offered and how it is advertised. Ms. Jones answered this is the first time ECA has worked with Songwriting Works; the participants for the songwriting workshops are residents at Aegis. The training program is free and open to the public. It has been advertised throughout the community and Elderwise has spread the word via their network of professionals in elder and memory care. This is a pilot project and a determination will be made whether it can be done on an ongoing basis. Councilmember Bloom inquired about the grant for the restroom renovation. Mr. McIalwain explained when the front of the theater was renovated in 2005-2006, the remainder of the school building, gymnasium, and music building were not addressed. The restrooms that will be renovated are on the main level of the school building behind the theater and are the same as they existed when built in 1939. The CBDG, federal funds that Snohomish County distributes to projects that meet the requirements, requires the renovation make the restroom ADA accessible. He noted that will be fantastic for users of the building as well as performers in next year's, Axis Dance, several of whom are wheelchair -bound. The goal is to finish the restroom renovation before that performance. The grant provides $102,000; some matching funds are still needed. Edmonds City Council Approved Minutes March 17, 2015 Page 7 Councilmember Mesaros thanked Mr. McIalwain for everything he does and for having a vision nine years ago that is being fulfilled today. He also thanked Mr. McIalwain's staff and volunteers present in the audience, noting the ECA enhances the City. Councilmember Johnson expressed support for the arts and her appreciation for everything the ECA does from students to seniors. She recalled the restrooms because she attended junior high there. She asked the status of the gymnasium roof. Mr. McIalwain explained the gymnasium was closed for about a week two months ago because the leaks were so extensive it was not safe to use. A company was engaged to do short-term torch -down work to stop the major leaks and make the gymnasium useable; that cost was covered by insurance. Today a staff member reported another leak. He thanked the Council for making the ECA gymnasium roof a priority in the City's legislative agenda. He has been visiting representatives in Olympia to garner support for funding for the entire roof and flashing cap around the perimeter. The flashing cap around the perimeter is necessary to preserve the 1921 unreinforced masonry walls. If the legislature does not provide those funds, they will seek support from the private sector. He is also working on a grant at the county level to receive a portion of lodging tax funds for that project. Councilmember Petso thanked the presentation team and the supporters in the audience. Mayor Earling commented Mr. McIalwain is a relative new comer to this project; his 10 years is predated by several people in the room. He complimented Mr. McIalwain, the staff members, volunteers, and the ECA and PFD Boards. The programs that have been redeveloped over last 5-6 years have begun to develop the breadth and depth of the facility's potential. 8. PLANNING BOARD UPDATE Planning Board Chair Neil Tibbott provided an overview of activities in last five months: Topic Action Taken CIP/CFP Plan and projects review and public hearing Board approved and forwarded to Council with recommendation for approval ECDC to ECC code adjustment re: Animal Approved resolution in support and forwarded to Provisions Council with recommendation Comprehensive Plan Update Introductions to various elements and staff reviews Elements Discussed: General Introduction and Land Use Element Statistics and demographic date updates Housing Board member discussion, and modifications to Utilities draft language Economic Development Added supplemental language and/or points Transportation and LOS Update Concurrent reviews of these elements by City Culture and Urban Design Council being undertaken in parallel with Planning Board reviews Parks Recreation and Cultural Services 24 Elements/Activities reported by Director Carrie 6-month Report to Planning/Parks Board Hite. Board reviewed, discussed and forwarded to Council with endorsement Draft Tree Code Introduction and early discussion based on work of Edmonds Tree Board and resultant code drafting with assistance of City staff Edmonds Development Code Updating Staff briefings on goals and objectives, funding for sub -consultant and introductory session with consultant (Makers Assoc.) Edmonds City Council Approved Minutes March 17, 2015 Page 8 Extended agenda: • Work Calendar • Loss of Mike Nelson to City Council • Planned retreat in June As the Planning Board is considering Tree Code, they asked staff about the selected trees and were satisfied trees that had been selected met the maintenance goals and impacts to infrastructure. He asked whether the Council was interested in having pictures of the plants that are in the Tree Code. Councilmembers said they were. Mr. Tibbott explained the Planning Board's approach to the Comprehensive Plan update has been to enhance organization and format for clear understanding by all users. He described factors being considered with respect to each element: 1. Provide statistical and demographic data updating 2. Maintain and enhance sustainability of Edmonds o Appeal and character of the City o Environmentally and economically o Enable managed responsible long term growth 3. Avoid excessively specific goals 4. Introduce/define a sensible metric for each element within the Comprehensive Plan • Example: For Economic Development Element, measure employment in Edmonds The Planning Board was provided a Parks Recreation and Cultural Services Report on January 14, 2015. Notable items within the report: ➢ Marsh/Marina Beach Master Plan — — Currently in progress with public input and ➢ Five Corners Roundabout Sculpture ➢ Yost Pool ➢ City Park ➢ Former Woodway HS Site Development ➢ Civic Stadium ➢ Veteran's Plaza ➢ Recreation Programs ➢ Next year: Further discussion on MPD concepts and review of Park Naming Policy including Willow Creek Daylight — — Completed concurrent with overall construction — — Boiler replaced. Negotiating with YMCA for ongoing management services — — Playground complete with redesigned "spray park" to be installed this spring — — Funding targets achieved, construction of two fields this summer — — Currently negotiating acquisition with ESD; hope for transaction this year — — Design completed with public input — — Remain strong, with revenues increasing Mr. Tibbott described the Planning Board's focus regarding the Edmonds City Code and Community Development Update: • Update code first, processes as necessary afterward • Complete clear and understandable definitions • Recognize and preserve character of the city • Recognize diversity of neighborhoods • Enable responsible and appropriate growth and development • Encourage and facilitate environmental sustainability He provided the Planning Board's extended agenda for April - June: Edmonds City Council Approved Minutes March 17, 2015 Page 9 Continued work on Comprehensive Plan o Transportation Element o Capital Facilities Element o Review proposed 2015 Comprehensive Plan update (target public hearing in June) Continue code update work o Critical Area Code o Draft Tree Code o Development Code Other as referred by City Council and/or staff He asked if there was anything else related to parks that the Council wanted the Planning Board to explore. Council President Fraley-Monillas relayed her support for the Planning Board's focus on the code update. With regard to the Planning Board's retreat, she noted Swedish -Edmonds has great meeting rooms available. Councilmember Nelson said he missed working with the Planning Board Members. He appreciated what they do and urged them to keep up the good work. 9. PUBLIC HEARING ON DRAFT CULTURE & URBAN DESIGN ELEMENT - COMPREHENSIVE PLAN UPDATE Development Services Director Shane Hope explained the Comprehensive Plan is under review to meet the State deadline for updating the plan by June 30, 2015. The City Council and Planning Board have been doing a sequential review of elements. The focus has been on updating data, housekeeping amendments as well as possibly small policy items. Staff involved with the culture and urban design, Parks & Recreation, Public Works, Economic Development and Development Services Departments, reviewed and proposed updates to the Element that were then presented to the Planning Board. The Planning Board reviewed the Element on February 25 and March 11. The Council packet contains a clean version as well as a track change version. This element currently has two sections, Community Culture and Urban Design. The proposal is to update language, clarify language in the Community Culture section including updating the narrative that refers to the Community Cultural Plan. In the track change version of Urban Design section of the Element, she recognized there is what appears to be a great deal of new language; in reality much of it was moved from the Land Use Element to the Urban Design Element. She recalled when the Land Use Element was presented to Council, staff advised many things in the Land Use Element regarding design would be moved into the Urban Design Element, such as language regarding specific districts, like the Downtown Waterfront and Highway 99, as well as consolidation of existing language. She provided example of language consolidation: • Page 177, A.9 Lighting: Instead of three objectives, they were combined into one statement, "Provide adequate and appropriate illumination in all areas used by automobiles, bicycles and pedestrians — including building entries, walkways, parking areas, circulation areas and other open spaces — to support activity and security." Ms. Hope commented from her perspective that was still too detailed for a Comprehensive Plan but the intent was to retain the existing concepts. • Page 178, A.11: Site utilities, Storage, Trash and Mechanical Systems: Instead of multiple objectives, they were combined into one, "Minimize the noise, odor and visual impacts of utility systems using such features as landscaping, building forms, or integrated design." Edmonds City Council Approved Minutes March 17, 2015 Page 10 • A new section regarding streetscape and street trees will be reviewed by the Planning Board and Tree Board and presented to Council in April. Ms. Hope reviewed new steps: • March 17: Public hearing on the draft • March 24: City Council study session • Now through June 2015: Ongoing work to update other Comprehensive Plan elements • Public hearing on full draft Comprehensive Plan update (June 2015) Councilmember Petso asked for clarification that the Council needs to act on the Comprehensive Plan in June. Ms. Hope expected there will be public hearings in June but the Council will not act until July. Councilmember Petso referred to a sentence in the draft that reads, "The strip type of development along Highway 99 has often resulted in economic underdevelopment of private properties that end up being aesthetically displeasing." She recalled the Planning Board minutes reflected a desire to eliminate that sentence. Ms. Hope offered to research that and provide further information at the March 24 meeting. Councilmember Petso recalled mentioning at the retreat that she was interested in challenging some assumptions; this sentence embodies several of the assumptions she would like to challenge. For example, the idea that strip malls are only on Highway 99 or properties on Hwy 99 are economically underdeveloped but perhaps other properties are not, or that strip malls are inherently aesthetically displeasing and other types of development are somehow more visually pleasing. She offered that observation on the off -chance a member of the public would comment on the assumptions. Councilmember Bloom referred to a statement on page 4 regarding pursing public and private funding for cultural sites. She asked whether the City was charged with pursuing private funding for sites such as the Edmonds Theater and the Masonic Hall. Ms. Hope said that language may need to be clarified; the idea is the City is involved in fundraising for public purposes and may partner with private non-profit organizations but not necessarily that the City would pursue the funds. Councilmember Bloom agreed it would be helpful to clarify that. She asked whether Edmonds Theater was a non-profit. Ms. Hope answered she did not know for certain but most are. Councilmember Bloom referred to page 12/181 regarding design guidelines and asked whether locating buildings close to the street was a design guideline. Ms. Hope answered much of the language in the Comprehensive Plan was left over from the past and goes beyond what she viewed as Comprehensive Plan policy. The goal of this update was not to redo the entire Comprehensive Plan. Most of language in red in the markup version was taken from the Land Use Element and inserted into the Urban Design Element. Councilmember Bloom referred to B.2 in the Urban Design section, " Improve pedestrian access from the street by locating building close to the street and sidewalks, and defining the street edge." and B.4, "Building Setbacks. Create a common street frontage view with enough repetition to tie each site to its neighbor. Encourage the creation of public spaces to enhance the visual attributes of the development and encourage outdoor interaction." She said those statements appeared to be contradictory. She asked whether these were design guidelines or code issues. Ms. Hope answered much of the current Comprehensive Plan language was the result of interest in design guidelines when the City did not have design guidelines. Again, with the intent of not rewriting the Plan, much of that language was retained. She suggested the language be revisited after the code update. Councilmember Mesaros said he doubted the Edmonds Theater was a non-profit. Edmonds City Council Approved Minutes March 17, 2015 Page 11 Councilmember Bloom referred to page 5/174 and asked what was a sustainable design practice and whether it was defined anywhere. Ms. Hope said she was not sure what was intended by that phrase but typically it is a broad term that can be thought of in different ways. The general idea is something that is sustainably designed will last a long time, be easy to maintain, be environmentally sensitive, etc. Councilmember Bloom asked whether that was defined in the Comprehensive Plan. Ms. Hope said the definition in the Sustainability Chapter combines three ideas, healthy environment, healthy economy and healthy community/quality of life. Councilmember Bloom referred to page 10 and the statement, "Encourage new construction to avoid repetitive monotonous building forms" and asked the intent of that language. Ms. Hope said that was also old language, likely the intent was not to have rows of buildings that looked exactly the same. Councilmember Bloom said that seems like a contradiction as other areas in the Comprehensive Plan refer to historical buildings. Councilmember Petso observed there is a provision in Comprehensive Plan to maintain a Strategic Plan to provide direction to the Historic Preservation Commission (HPC). She asked whether that referred to the City's Strategic Action Plan that the Economic Development Department is doing or HPC's Strategic Action Plan. Ms. Hope answered the HPC's Strategic Action Plan. Councilmember Petso asked why that would be in the Comprehensive Plan; the HPC tends to take direction from the enabling ordinance and developed own Strategic Plan. Ms. Hope offered to research that. Councilmember Johnson recalled the HPC Strategic Plan was a requirement for funding; that effort is led by Commissioner Waite and Planning Manager Rob Chave. Councilmember Petso reiterated her question why it was in the Comprehensive Plan. Ms. Hope said including reference in Comprehensive Plan aids funding. Councilmember Johnson suggested the reference be to the HPC's Strategic Plan. Mayor Earling opened the public participation portion of the public hearing. Roger Hertrich, Edmonds, observed a lot of the descriptions that were crossed out were good descriptions. After hearing at a recent meeting that the Tree Board is not satisfied with the current concentration of trees and wants more, he began looking for language in the code regarding views. A citizen spoke at the Tree Board about a tree planted in a traffic island that now blocks their view. He referred to language on page 144 regarding views that was crossed out. Views are important to citizens; if references to views are eliminated, that does not reflect citizens' concerns. The right trees need to planted in the right places without obscuring views. He referred to language on page 139 regarding vehicular access and safe streetscape downtown, pointing out the sidewalks coming up from ferry particularly on the south side are a jungle of trees and cement that is not in good shape. He suggest special attention be given to sidewalks downtown, many of them need repair. He referred to language on page 138 regarding design in the downtown area and wall modulation where the phrase, "to let more light and air into the building" is crossed out. He suggested the crossed out language is as important as what has been added and encouraged the Council to review the language that has been crossed out. Hearing no further comment, Mayor Earling closed the public participation portion of the public hearing. Councilmember Bloom observed the pages Mr. Hertrich referenced are not in the packet. Ms. Hope answered she was not sure about the pages he was referencing and would report on March 24. Mayor Earling declared a brief recess. 10. ANNUAL IMPACT FEE REPORT Finance Director Scott James reported: Edmonds City Council Approved Minutes March 17, 2015 Page 12 • In 2013, the City began collecting Park Impact Fees to help pay for park projects needed to serve new growth and development • We started collecting Park Impact Fees in a phased approach, collecting 50% in October of 2013, and phasing to 100% in October 2014 • We collected fees from 24 single family dwellings, 4 multifamily dwellings, and 6 commercial buildings • City Code Section 3.36 states that the Impact Fees "Shall be used for public improvements that will reasonably benefit new development" o Examples Include: - Increasing waterfront access - Increasing connectivity (bike lanes, trails) - Phase 2 and 3 of the former Woodway fields project - Community Garden - Aquatics Center City Code Section 3.36 states that the Impact Fees "Shall not be imposed to make up for deficiencies in public facilities serving existing developments" and "Shall not be used for maintenance or operations" o Examples Include: - Purchasing Civic Field as we currently operate this as a park Mr. James displayed a table of Park Impact Fee Revenues: Year Beginning Balance Revenue Expenditure Ending Balance Cumulative Expenditures 2013 $ -- $2,934.06 $ -- $2,934.06 $ -- 2014 $2,934.06 $203,503.23 $ -- $206,437.29 $ -- Total $206,437.29 $ -- 11. PRESENTATION OF THE DECEMBER 2014 FINANCIAL MANAGEMENT REPORT Finance Director Scott James displayed a table entitled, General Fund - Funds Revenue Comparison for YTD 2013 receipts, YTD 2014 receipts, $ change `14213 and % change ' 14 - 13 for the General Fund, LEOFF-Medical Ins Reserve, Risk Management Reserve Fund, Contingency Reserve Fund, Multimodal Transportation Fund, Historic Preservation Gift Fund, Building Maintenance and Total. He highlighted: • General Fund experienced $4.7 million increase over 2013, primarily due to bond refunding that resulted in $2.4 million in proceeds. Without the proceeds from the bond, the General Fund only experienced about a $1.89 million increase. Mr. James displayed a General Fund Revenue Budget to Actual that illustrates YTD Actuals for 2013 and 2014 and % change; 2013 and 2014 budget and % change; and % of budget 2013 and 2014 for Taxes, Licenses and Permits, Intergovernmental Revenue, Fines and Forfeitures, Miscellaneous Revenues, Other Financing Sources and Total Revenues. He highlighted: • Taxes: $145,000 increase compared to 2014 budget • Licenses and Permits: $213,000 increase over 2014 budget • Intergovernmental Revenue: $14,000 increase over 2014 budget • Fines and Forfeitures: $92,000 under budget • Miscellaneous Revenues: $781,000 under budget o Primarily due to staff including an estimate for under expenses ($725,000). Even with the inclusion of $725,000, the General Fund ended $2500 under budget Edmonds City Council Approved Minutes March 17, 2015 Page 13 He displayed a chart entitled, Change in General Fund Revenue for YTD December 2014 Compared to YTD December 2013 for various revenue categories. He highlighted: • Proceeds from the bond account for the biggest portion • Sales Tax and Interfund Reimbursement • All but four categories experienced revenue increases He displayed graphs illustrating 5 year trends (2009-2014) • Property tax revenues o Decrease in revenue beginning in 2009, continuing through 2011 - EMS Levy of $0.501$1000 AV experiences decreased revenue when assessed values decrease o New construction increased General Fund approximately $265,000 over the 5 year period Sales Tax o Increase reflects overall economy o Pie chart and bar graph of sales tax by category Utility Taxes o Decreases due to economic downturn when residents seek to save money by reducing use of utilities o Increase due to new development as well as the 3-year rate increase Development Related Revenues o Upward trend since 2012 Mr. James displayed a table entitled, General Fund - Funds Expenditure Comparison for YTD 2013 expenses, YTD 2014 expenses, $ change `14-' 13 and % change ' 14 - `13 for the General Fund, LEOFF- Medical Ins Reserve, Risk Management Reserve Fund, Contingency Reserve Fund, Multimodal Transportation Fund, Historic Preservation Gift Fund, Building Maintenance and Total. He highlighted: • $5.5 million increase in 2013 primarily due to bond refunding and paying off $2.7 million and transfers to other funds reduced by $2 million He displayed a General Fund Department Expense Summary illustrating 2014 Adopted Budget, YTD 2013 Expenditures, YTD 2014 Expenditures, Amount Remaining and % Spent. With regard to the overage in Facilities Maintenance, he explained consultants are being interviewed to conduct a facilities condition assessment to determine building needs in order to plan for future expenditures and avoid overages. He displayed a table entitled, General Fund - Fund Balances, advising the General Fund increased in 2014 by $1.1 million over 2013. Mr. James displayed a table entitled, Special Revenue Funds Revenue Comparison illustrating YTD 2013 receipts, YTD 2014, receipts, $ change ' 14 - ' 13 and % change ' 14 - 13. He highlighted: • $2.2 million in grants • $648,000 interfund transfers • $317,000 Charges and Services He also displayed a table entitled, Special Expenditure Funds Revenue Comparison, illustrating YTD 2013 expenses, YTD 2014 expenses, $ change ` 14-' 13 and % change ' 14 - ' 13. He highlighted: • Total expenditures nearly 50% increase in 2014, primarily attributable to increased outlays for street construction projects. • Graph illustrating downward trend in Motor Vehicle Fuel Tax Revenues 0 82% of City's Motor Vehicle Fuel Tax is received by the Street Maintenance Fund. 0 18% of revenues are receipted into the Street Construction Fund 0 2015 budget included a significant transfer from the General Fund to the Street Fund; this revenue transfer may not be possible in 2016 Edmonds City Council Approved Minutes March 17, 2015 Page 14 Mr. James displayed graphs illustrating 5 year trends (2009-2014) • Hotel/Motel Lodging Tax Revenues o Upward trend until 2013 o Slight downward trend in 2014 0 75% of Lodging Tax is receipted into the Hotel/Motel Tax Fund which uses the funds for the purpose of promoting tourism and visitors to Edmonds o Remaining 25% of the Lodging Tax is receipted into the Fund 123 Tourism Promotion/Arts Fund, which uses the funds to promote tourism through support arts and culture events • Real Estate Excise Revenue o Reflects economy o Decrease in 2014 may be due to limited supply Mr. James displayed a revenue comparison for the Utility Funds, pointing out a large decrease in 2014 compared to 2013 due to the Utility Funds' issuance of $15 million in debt in 2013. He displayed an expense comparison for the Utility Fund, noting expenses are flat for 2013 and 2014. Councilmember Petso referred to packet page 155, Revenue by Fund Summary, that shows significantly reduced revenues compared to budget for Funds 009, 011 and 012, the total close to $1 million. She noted those funds do not have a revenue source, leading her to assume those funds were budgeted to receive transfers but did not. Mr. James recalled when the 2015 budget was being developed the City received the retroactive bill from Fire District 1 (FD1). One of the ways to mitigate the impact of that bill was to decrease transfers to funds and retain them in the General Fund to pay the $1.6 million FD1 bill. Councilmember Petso said she would discuss that further at their appointment on Friday. Councilmember Petso referred to packet page 156, Expenditure by Fund Summary, that shows $38 million for 001 and the budget book showing $39 million in expected expenditures. She asked what happened between the time the budget was adopted and now that resulted in $1 million less in expenditures. Mr. James answered that was due to the transfers the General Fund was scheduled to make that were not made. Councilmember Petso referred to the chart regarding changes in sales tax revenue, noting the largest decrease was in the category of amusement and recreation. She asked whether that was attributable to the loss of the bowling alley. Mr. James answered no, there was a large back payment from non-paying entity in 2013. Councilmember Johnson commented it was interesting how dependent the City was on retail automotive and gas; it represents approximately 25% of the overall revenue and about 50% in the retail recovery during the past year. For Councilmember Bloom, Mr. James explained a series of bonds were issued for the Utility Fund. The Utility Fund has been on an every 2 year cycle for last 2 years; the last one was in 2013. He has been meeting with bond counsel and bond broker to lay the groundwork to come to the City Council with a 2015 bond issue. Public Works has informed they expect to run out of bond proceeds in about a month and are projecting they will need $10-11 million in bond funds in 2015. Councilmember Bloom recalled the rates were increased to pay off the bonds. Mr. James explained the rate study that was done recommended a six -year process of raising utility rates. The Council decided to raise rates for three years and revisit it before implementing the second three years. This is year two of the three year cycle; staff will revisit the issue next year and provide a more detailed report regarding how rate increases impacted the ability to pay debt. Edmonds City Council Approved Minutes March 17, 2015 Page 15 Councilmember Bloom asked the actual increase in revenue in the Utility Fund in 2014. Mr. James referred to Utility Funds Revenue Comparison, explaining if the $15 million in debt proceeds in 2013 was removed, there would be an upward trend in Utility proceeds. Council President Fraley-Monillas observed the chart on tax revenue does not break out automotive and gas. She asked the gas tax revenue 2014 compared to 2013. Mr. James advised he plans to break out automotive sales and gas beginning January 2015. Council President Fraley-Monillas referred to sales tax from Highway 99 and other businesses, recalling Mayor Earling indicated 2-3 years ago that sales tax from Highway 99 was approximately $1.3 million and sales tax from the rest of Edmonds was $200,000- $300,000. She asked whether Mr. James had a comparison of sales tax in the two areas. Mr. James said he did not bring that information tonight. The Mayor's comparison 2-3 years ago was Highway 99 sales tax compared to the downtown core, not the rest of Edmonds. Council President Fraley-Monillas requested he email that information to Council. Councilmember Mesaros referred to retail automotive and gas and asked whether any projections had been made with regard to the decrease in the per gallon price and more fuel efficient vehicles. Mr. James said the legislature is looking at this source of revenue; he did not know what that would mean to the City. Councilmember Johnson observed gas tax is per gallon not sale price and should not be impacted by the price. Councilmember Mesaros observed people are buying less gas due to more fuel efficient vehicles and electric hybrids. For example, 2 years ago he drove a car that got 18/mpg, he now drives a car that gets 44 mpg. Mr. James said AWC is lobbying for some change related to that. 12. MAYOR'S COMMENTS Mayor Earling advised there will be a brief executive session at end of agenda. He congratulated Sergeant Hawley on his promotion. 13. COUNCIL COMMENTS Council President Fraley-Monillas thanked Council and staff for attending the 11/2 day retreat. She was hopeful the notes will be sent out to Council and staff tomorrow. Councilmember Johnson reported the number 1 priority coming out of the retreat was long range financing for capital projects. Councilmember Mesaros thanked Carl Zapora, Verdant, who was in the audience, for allowing the Council to use their facilities for the retreat and hear about their programs and the asset they are to the community. He thanked Council President Fraley-Monillas for organizing the retreat. Councilmember Bloom thanked Val Stewart for encouraging citizens to submit comments to the Department of Ecology regarding the Shoreline Master Plan. Comments are due March 27, 2015 by 5:00 p.m. to David Pater, Department of Ecology. This is very important because the Port of Edmonds Commissioners made a decision to spend $25,000 to appeal the 100-foot setback for the marsh in the City's Shoreline Master Program; the Port Commission prefers a 25-foot setback. Councilmember Nelson thanked Council President Fraley-Monillas for organizing the retreat. He found it a great introduction to learning more about Councilmembers. 14. CONVENE IN EXECUTIVE SESSION REGARDING PENDING OR POTENTIAL LITIGATION PER RCW 42.30.110(1)(i) Edmonds City Council Approved Minutes March 17, 2015 Page 16 At 9:25 p.m., Mayor Earling announced that the City Council would meet in executive session regarding pending or potential litigation per RCW 42.30.110(1)(i). He stated that the executive session was scheduled to last approximately 5 minutes and would be held in the Jury Meeting Room, located in the Public Safety Complex. Action may occur as a result of meeting in executive session. Elected officials present at the executive session were: Mayor Earling, and Councilmembers Johnson, Fraley-Monillas, Peterson, Petso, Bloom, and Nelson. Councilmember Mesaros did not attend the executive session. Others present were City Attorney Jeff Taraday, Development Services Director Shane Hope and Deputy City Clerk Linda Hynd. At 9:33 p.m., Mayor Earling announced to the public present in the Council Chambers that an additional 5 minutes would be required in executive session. The executive session concluded at 9:40 p.m. Mayor Earling reconvened the regular City Council meeting at 9:41 p.m. 15. RECONVENE IN OPEN SESSION. POTENTIAL ACTION AS A RESULT OF MEETING IN EXECUTIVE SESSION Councilmember Petso requested a one minute break before continuing. COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER BLOOM, TO ADOPT ORDINANCE NO. 3992, AN ORDINANCE OF THE CITY OF EDMONDS, ADOPTING AN INTERIM ZONING ORDINANCE TO AMEND TITLE 20 OF THE EDMONDS COMMUNITY DEVELOPMENT CODE, BY ADDING A NEW SECTION RELATING TO DEEMED WITHDRAWAL IN THE CASE OF IRRECONCILABLE DEVELOPMENT APPLICATIONS, RECODIFYING THE SECTION RELATED TO RESUBMITTAL OF DEVELOPMENT APPLICATIONS AFTER DENIAL, DECLARING AN EMERGENCY NECESSITATING IMMEDIATE ADOPTION AND EFFECTIVENESS OF THIS INTERIM ZONING ORDINANCE. MOTION CARRIED (5-0-1), COUNCILMEMBER MESAROS ABSTAINING. Mr. Taraday referred to the confusion regarding voting on Consent Calendar Items D and E. In speaking with Mr. Williams, he said the motion that was ultimately approved did not actually authorize the Mayor to execute the change orders and he was hopeful a Councilmember would make that motion. COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER NELSON, TO AUTHORIZE THE MAYOR TO EXECUTIVE THE CHANGE ORDER ASSOCIATED WITH CONSENT AGENDA ITEM E. MOTION CARRIED 5-0-1 COUNCILMEMBER PETSO ABSTAINING. 16. ADJOURN With no further business, the Council meeting was adjourned at 9:45 p.m. S PASSEY, Cl LERK Edmonds City Council Approved Minutes March 17, 2015 Page 17