02/02/2012 City CouncilEDMONDS CITY COUNCIL RETREAT
APPROVED MINUTES
February 2 -3, 2012
The Edmonds City Council retreat was called to order at 10:04 a.m. on Thursday, February 2, 2012 in the
Brackett Meeting Room, City Hall, 1215 1h Avenue North, Edmonds, Washington.
ELECTED OFFICIALS PRESENT
Thursday, February 2
Dave Earling, Mayor
Strom Peterson, Council President
Frank Yamamoto, Councilmember
Joan Bloom, Councilmember
Michael Plunkett, Councilmember
Lora Petso, Councilmember
Adrienne Fraley- Monillas, Councilmember
Diane Buckshnis, Councilmember
PUBLIC PRESENT
Thursday, February 2
Bruce Witenberg
Darrol Haug
Ron Wambolt
Harry Gatjens
Al Rutledge
Roger Hertrich
Evan Pierce
Ken Reidy
Bruce Faires
Jim Orvis
THURSDAY, FEBRUARY 2, 2012 — CALL TO ORDER
STAFF PRESENT
Thursday, February 2
Al Compaan, Police Chief
Jim Lawless, Assistant Police Chief
Stephen Clifton, Community Services /Economic
Development Director
Phil Williams, Public Works Director
Shawn Hunstock, Finance Director
Carrie Hite, Parks & Recreation Director/Interim
Human Resources Director
Rob Chave, Planning Manager
Carl Nelson, CIO
Jerry Shuster, Stormwater Eng. Program Mgr.
Leonard Yarberry, Building Official
Rob English, City Engineer
Mike DeLilla, Senior Utilities Engineer
Tod Moles, Street Operations Manager
Mary Ann Hardie, Human Resources Manager
Cindi Cruz, Executive Assistant
Kody McConnell, Executive Assistant
Carolyn LaFave, Executive Assistant
Jeff Taraday, City Attorney
Sandy Chase, City Clerk
Jana Spellman, Senior Executive Council Asst.
Jeannie Dines, Recorder
Council President Peterson called the meeting to order at 10:04 a.m.
• Introduction/Brief Preview of Retreat A eg nda
Council President Peterson explained in preparation for the retreat he asked the Council, Mayor and staff to
identify issues important for 2012. Most of the issues were included on the retreat agenda; some will be on
future Council agendas throughout the year. Mike Bailey, Redmond's Finance Director, is ill and unable to
make the presentation regarding budgeting by priorities. Finance Director Shawn Hunstock will introduce the
topic today. Mr. Bailey will be invited to provide a workshop to the Council in the next few weeks to explore
the concept in detail.
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Council President Peterson explained because this is a relatively young City Council with the majority of
Councilmembers in their first term, roles and responsibilities of the Council was a topic that many identified. A
consultant recommended by AWC will make a presentation tomorrow to review the relationship between City
Council and Mayor in a strong Mayor /Council form of government. Council President Peterson briefly reviewed
other topics on the retreat agenda.
Councilmembers and staff introduced themselves.
Audience Comments
Darrol Haug, Edmonds, thanked the Council for their efforts. This is the third retreat he has attended and he
enjoys the open, candid dialogue that occurs at retreats that does not happen at City Council meetings. Today is
Groundhog Day; in this case the shadow looming is the budget issue. Because 2012 is not an election year, he
suggested it would be a good time for the Council to continue the spirit of the retreat and establish a policy to
solve the budget gap. Budgeting by priorities was studied by the levy committee and he urged the Council to
consider that concept as a way to help the City. He looked forward to a concerted effort to identify policies early
in the process and was hopeful the shadow of the budget gap would not be quite as looming next year.
Al Rutledge, Edmonds, acknowledged the City did its best during the snow. He reported there was no mail
delivery on SR 104/205"' or on 76"' for four days due to snow which could have been a problem for someone
expecting medical supplies via mail. On the fifth day of the snow, a car hit a pole causing a power outage in the
Lake Ballinger area. He suggested the situation be reviewed by the Police Chief. Next, he suggested the Council
discuss the sale of Robin Hood Lanes and hold a public hearing.
Council President Peterson referred to an email from Ken Reidy, Edmonds, regarding executive sessions. Mr.
Reidy's email cited the preamble to the Washington State Open Public Meetings Act (OPMA) which states in
part, the people of this state do not yield their sovereignty to the agencies which serve them. The people, in
delegating authority, do not give their public servants the right to decide what is good for the people to know
and what is not good for them to know. In Mr. Reidy's opinion, state law requires the eventual release of
executive session meeting minutes to the citizens such as after real estate has been purchased, after publically
bid contracts are finalized or after pending litigation has been settled and/or all appeal rights related to the
litigation have been exhausted. He supported the keeping of detailed minutes of all executive sessions and
offered to work with elected officials to clearly establish the point in time that executive session meeting
minutes will be made available to the citizens.
Discussion about Executive Sessions and the Consequences of Minutes/Notes
Council President Peterson explained there has been some question about what other cities in Washington
do /not do with regard to executive session minutes /notes, when those minutes /notes are made available to
public, pros and cons regarding attorney /client privilege and the concept of executive sessions.
City Attorney Jeff Taraday provided the following introductory comments: first, there is a clear distinction
between notes and minutes. Minutes may begin as notes but become minutes when the City Council has an
opportunity to review and vote to approve their accuracy and in some cases make revisions which may include
reviewing the audio of the meeting. Currently in executive session the City Clerk takes notes but those notes are
never reviewed /approved by the City Council so they do not have the status of minutes. Second, Mr. Taraday
was not aware of any other city in Washington that keeps notes of executive session. Municipal Research
Service Center (MRSC) recommends against that practice. Edmonds began keeping notes of executive sessions
in 1996 when Resolution 853 was adopted. Mr. Taraday read Resolution 853, Establishing a Procedure for
Keeping and Retaining Minutes of City Council Executive Sessions.
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Mr. Taraday pointed out that although the resolution uses the term "minutes," he does not consider the Council's
practice to be generating minutes. To the extent the Council deems that there is a public interest for making a
record of what takes place in executive session, that record should be as accurate as possible. If there is a desire
for a record, there should be an audio recording of executive sessions. Alternatively, the Council goes into
executive session for a reason; the reason is stated before the Council goes into executive session and it is an
executive session because it is a discussion that should not be public and no record should be made. Mr. Taraday
recommended the Council either make a full record or make no record; to do what the Council is doing now is
potentially misleading in that it is not possible to take down on paper everything that takes place in executive
session.
The Council raised the following suggestions /questions /topics (City Attorney's response in italics):
• As an alternative to recording, keep notes of executive sessions and the Council review the notes and
possibly in the future call them minutes. The resolution seems to state the Council wants to ensure there
is a record stating the Council was in executive session for the right reason. There is no way to know
that an accurate record exists unless there is a recording to back up the notes. The Council also needs
to vote to approve minutes; the Council cannot vote in executive session. The Council could review the
minutes privately and then vote in open session to approve them. If there is an interest in a fully
accurate record of what takes place in executive session, the only way to ensure that is to record it.
• Why not record executive sessions? The City has always asserted that if the executive session is for the
purpose of discussing pending /potential litigation and the City Attorney is present, the notes taken
during executive session are attorney /client privilege protected and therefore are not subject to public
disclosure. However, there is no case law and there is no guarantee the court would rule that way.
Therefore in the absence of a more clear statute about note taking /minute taking /recording of executive
sessions, there is some risk that a court could rule that whatever record was made should be made
public. He would, of course, vehemently object to that effort and would argue that any record of a
discussion regarding pending /potential litigation should be treated as attorney work product or
attorney /client privilege and not subject to public disclosure.
• What topics are permissible for Executive Session and why don't other cities take notes? The reason
other cities do not take notes is out of concern that the record cannot be protected from public
disclosure. Mr. Taraday reviewed the permissible bases for executive sessions contained in RCW
42.30.1101(1).
• The Council could continue its current practice but revise the resolution to conform to the current
practice. If the current practice is continued, Councilmembers have some protection because they do not
review or approve the notes taken of executive sessions. Mr. Taraday did not recommend continuing the
current practice because if the goal is an accurate, complete record, it should be a record that can be
verified later.
• There are some issues on the list of bases for an executive session that should not have any record kept;
the philosophy behind an executive session is to have an open discussion about sensitive issues such as
personnel, potential litigation, and those should never be revealed to the public. The Council could
record discussions regarding real estate matters; the Council could review and approve minutes in open
session and possibly release them in the future. The Council would not record or take notes of all other
executive session topics. The City Council could establish a policy to record certain types oj'executive
sessions. With regard to the approval of minutes, there is no exemption from the OPMA for approval of
executive session minutes; the City Council cannot go into executive session to discuss a change to
executive session minutes. MRSC recommends that minutes not be kept of executive sessions because a
public records request could be made for the minutes and there is no automatic exemption from
disclosure that applies.
• RCW 42.30.010 cited by Mr. Reidy states that the people of the state do not yield their sovereignty to
the agencies which serve them. The Council should take full and complete minutes and record executive
sessions and determine what can /cannot be revealed in the future. The risk of that approach is the
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executive session list of topics does not clearly say that a record of the executive session is not
disclosable under the Public Records Act.
• Why does Edmonds keep notes of executive sessions? MRSC recommends notes not be kept and most
cities do not. There is no legal need to takes notes to comply with state law; it is up to the Council
whether to preserve a record of executive sessions. It can be helpful in the future to check on topics the
Council has discussed in the past.
• Executive sessions give the Council an opportunity to have an open dialogue with staff. The philosophy
of executive sessions is to have a frank dialogue, a recording would minimize that.
• There may be short term reasons not to disclose executive session notes but not in the long term. If
Councilmembers know what they say could eventually be disclosed, they may be more thoughtful in
their questions and discussion. All executive session conversations should be disclosed in the future.
The public has a right to know the information unless it is confidential and private.
• Need to determine why other cities are not taking notes of executive sessions. The reason other cities do
not take notes is clear in the statement on MRSC's website; there is no automatic exemption from
disclosure. There is the possibility even in the short term that a court could require disclosure of a
record the City Council thought would not be disclosed. A potential option would be to have the City
Attorney take notes. His notes would be easier to protect as they are an attorney work product.
• It would be unpractical to have discussion in executive session if Councilmembers have to think about
what could be released. Recording or taking minutes for only some topics would also be difficult. There
is the potential for a lawsuit with regard to any executive session topic and the Council has the fiduciary
responsibility to limit /reduce lawsuits. Prefer no minutes be kept of executive sessions.
It was the consensus of the Council to clarify, revise, rewrite the resolution. Council President Peterson will
schedule it for consideration by the full Council during the first half of the year and take public comment. He
asked Councilmembers to provide him their suggestions.
Budgeting by Priorities Presentation (working lunch)
Community Services /Economic Development Director Clifton explained one of the topics at an Association of
Washington Cities budget workshop was budgeting by prioritiesibudgeting for outcomes. Councilmember
Buckshnis, Citizen Darrol Haug and he and a few others then met with Redmond Finance Director Mike Bailey
who reinforced their interest in the concept and determining whether it would be an appropriate budgeting
process for Edmonds. Mr. Bailey, who is ill today, will be invited to conduct a workshop with the Council in the
future to describe what it was like for Redmond to implement budgeting by priorities, and how it was received
by the directors, elected officials and citizens.
Mr. Hunstock explained Redmond spent 1 -2 years and $160,000 on consultants to put a budgeting by priorities
process in place. He referred to a handout from the Government Finance Officers Association regarding a
priority- driven budget process that is similar to budgeting by priorities. He provided an overview of budgeting
for outcomes:
1. Determine the "price of government" (total resources)
2. Determine priorities
a) Example: one of Redmond's priorities was a safe place to work, play and live
3. Assign a portion of the "price" to each priority
4. Determine best way to delivery results by priority
a) Results Team develop strategies /RFOs
b) Program staff submits "offer (attempt to address goal), may be multi- department offer
c) Results teams rank/scale offers
5. Results budgeting is focused on strategies to accomplish priorities
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Mr. Clifton pointed out the strategic plan will assist with steps 2 and 3, determining priorities and allocating
resources. At the strategic plan retreat on February 28, consultant Tom Beckwith will discuss budgeting by
priorities. Knowing citizens' priorities will help in the decision making process; that is how the strategic plan
will tie into the budgeting process over time. Mr. Hunstock commented the State has been using budgeting by
priorities for several years
Mr. Hunstock responded to Council questions regarding the size of results teams, who is on results teams,
process for results team ranking /scaling offers, different results teams for each priority, ranking /weighting
mandatory items ahead of discretionary items, how the Comprehensive Plan and other plans fit into budgeting
by priorities, how to prevent large teams from getting bogged down in minutia, who leads the results teams,
annual versus biannual budgeting process, initial resistance from staff in Redmond, first Edmonds budget that
could use this process, length of time this concept has been in place, and how budgeting by priorities fits with
the strategic plan.
Ms. Hite relayed comments from colleagues in Redmond that this process takes a lot of time and takes time
away from other priorities. After Redmond completed their process, Bellevue used a hybrid model that was not
as time intensive but had the same results. She suggested considering methods utilized by other cities.
Mayor Earling pointed out unknowns such as staffing levels based on the 2013 budget, emphasizing the need to
be mindful of staffing level potential. In late February, early March and until the 2013 budget is approved, he
plans to embark on a systematic approach of educating the public about the City's budget. This will be a
combination of newsletters, columns, City Council meetings, etc. to expose citizens to the reality of the
challenges the City faces and to get the community engaged.
Council President Peterson advised he will schedule a workshop with Mr. Bailey to provide more details
regarding Redmond's experience.
Department Updates and Priorities for 2012
1. Finance
Mr. Hunstock reviewed the Finance Department's 2012 work plan:
• Policy and procedure development including reserve policy and appropriate balance in each fund
• Issue RFP for banking services, lower cost and better service
• Improve financial reporting
Mr. Hunstock reviewed a State of City's Finances handout. He highlighted the Total Governmental Fund
Revenue and Expenditures graph, summarizing in 8 of the last 10 years, expenses have exceeded revenue. He
highlighted the Total Fund Balance Governmental Funds graph, explaining although the General Fund ending
fund balance has stayed somewhat stable, the balance in other funds is decreasing, which puts more pressure on
the General Fund to bail out those funds.
Mr. Hunstock referred to the General Fund Revenue, Expenditures and Fund Balance 2009 -2021 graph, which
shows the General Fund will be depleted by early 2017. The graph includes $1.3 million Public Safety Reserve
but not $1.9 million Emergency Reserve. He summarized expenses increase 3.2% /year while revenues only
increase 1.4% /year. Until that gap is narrowed or reversed, the City will run out of money at some point. He
provided another graph that assumes $1 million in new revenue every year, pointing out that only pushes out the
date that the City runs out of money. The bigger issue is that expenses exceed revenues. One of the primary
reasons is the limit on property tax increases to I Wyear plus new construction.
Discussion followed regarding the increase in employee benefits, the importance of educating citizens regarding
expenditures exceeding revenues, economic development that increases revenue, and laying the groundwork for
creating new revenue sources in the future.
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2. Public Works
Public Works Director Phil Williams explained in 2012 Public Works has $32 million in expenditure authority.
He distributed information regarding Engineering, including staff biographies, organization chart, staff
responsibilities, 2011 accomplishments, 2012 goals, project management, and the quarterly Public Works report.
He highlighted 2012 infrastructure issues:
Water
• Finish 2011 water line replacement program
• Construct 2012 water line replacements
• Pave 2010/2011 water line replacement segments rated poor and severe
• Design 2013 water line replacement
• Anticipate and implement 7.5% rate increase for January, 2013 (20 10 Water System Plan)
• Expect the cost of water from Alderwood Water to increase 6 -9%
Sewer
• Replace /repair /upgrade pump stations 2, 5, 11, 12, 14 and 15
• Design /construction sewer system repairs on 2241', Alder Street East, Beach Place, Dellwood Drive
• Design sewer system repairs on 2001h, 216`h, 72nd West, 76th West, 81h South, Hemlock, 7d' Ave
• Update Sewer Comprehensive Plan and rate study
• Treatment
• Automatic transfer switch, enclosure and new walkway
• Aeration basin baffles
• Incinerator state testing and compliance plan
• New incinerator regulations
• One more year of flow swap with King County (-x$300,000)
• Alderwood solids processing (-x$175,000)
Stormwater
• Design Talbot Road drainage and habitat improvement
• NPDES phase 11 permit compliance
• Drainage improvements in SW Edmonds basin
• Public Works yard improvements
• Lake Ballinger projects
Transportation capital
• Design /right -of -way phases funded and ongoing for:
• 228"' /Hwy 99
• 212'h/76 1h Edmonds Woodway High School
• 212'h/84 1h (Five Corners)
• Complete design and construct Main Street improvements starting September
• Completed 30% design and apply for funding for Sunset Avenue walkway
• Continue traffic calming program with radar feedback signs
Mr. Williams highlighted the following:
• Street expenditure budget for 2012 is approximately $1.605 million
• $700,000 net gas tax ($160,000) goes to Fund 112 for street capital)
• First $20 TBD revenue generates approximately $600,000 /year
• Total revenue $1..314 million
• $291,000 from current fund balance of $319,000 leaving $28,000
• The City has not paved any street with its own resources since 2008
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• An additional $1.4 - $1.5 million is needed above current funding levels to provide a sustainable street
condition
• Water Fund will do approximately $525,000 - $595,000 paving in 2012
He displayed a chart illustrating the effect of I -695 on license fees and Motor Vehicle Excise Tax (MVET) for a
$25,000 car. He also displayed a graph of the City's historical budget growth vs. CPI 10 years before and 10
years after I -695. He displayed a map of City streets rated poor to severe. He summarized the two primary
issues:
Streets are not in acceptable condition
Streets are getting worse each year, will continue to do so absent a targeted pavement preservation
program, and the cost to cure will outpace inflation
Mr. Williams commented on the following:
• City voters rejected $40 per vehicle TBD fee increase in 2010
• City voters rejected a property tax levy for streets in 2011
• Street utility bills have not fared well in the legislature for several years
• There are several new proposals in the legislature this year:
• Governor's proposal:
■ $1.50 barrel tax
■ $1% county MVET
■ $15 fee increase for heavy trucks
■ $300 million to TIA for TIB grants
■ $300 million to County CRAB board
■ TBD councilmanic fee authority for an additional $20 /vehicle
• None of these can be counted on to resolve our street funding issue. Some General Fund or REST
support is needed.
Mr. Williams responded to Council questions regarding potential for another TBD vote for a lesser amount,
recent street ratings, goal of a sustainable street system, funds from the state via Public Works Trust Fund or a
jobs stimulus package, the City's snow clearing policy, implementation plan for water and sewer facility fees,
the role of the Citizen Transportation Board and potentially reforming the Board, current limitations on the use
of TBD funds, City ordinance limiting allocation from REET to transportation, legislature's change in the use of
REST, revenue bond for street paving on voted revenue source, and reducing the speed limit on Sunset Avenue.
Council suggestions included:
• Educating citizens regarding how ice /snow is removed from streets
• Reaching Council consensus on TBD/levy for money for streets
• Proposing a property tax levy for streets rather than an increased TBD fee
• Matching revenue bonds to projects
Mayor Earling commended the street crew for the great job they did during the snow storm. Last Tuesday Mr.
Williams and he along with 20 other mayors from around the state met in Olympia to discuss transportation
issues and to unite around a common message. He invited Councilmembers' input regarding the transportation
funding tools that the legislature is discussing.
Mr. Williams commented preserving the existing infrastructure is an important issue as state funds are not
available for that. He suggested the Council may want to revisit the ordinance regarding the use of TBD funds.
Council President Peterson advised the TBD Board is meeting next week; the legislature is considering allowing
Councils to enact an additional $20 TBD license fee. If that were allowed and Edmonds chose to do it, it would
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generate $600,000 /year. Another possible funding source the Council could consider is changing the REST fund
allocation.
3. Police
Police Chief Al Compaan displayed the Police Department organizational chart, and identified Police
Department mandated services, and other services. Chief Compaan reviewed staffing and services rendered in
2011:
• 55 commissioned and 9 full -time support staff and 2 part -time
• 30,413 incidents including 8,227 traffic stops
Chief Compaan reviewed the Police Department 2012 budget:
• Budget $9,165,244
• Includes $531,050 jail costs
• Does not include $1,076,255 for SNOCOM - SERS dispatch for Police, Fire, Public Works
Chief Compaan reviewed a graph of budget versus expenditures 2009 -2011. He also reviewed a graph of
overtime 2009 -2011 and described reasons for overtime:
• 2009: $408,000 department operations and $50,000 reimbursed
• 2010: $407,000 department operations and $40,000 reimbursed
• $2011: $394,000 department operations and $59,000 reimbursed
Chief Compaan commented on staffing:
• Staffing has dropped from 85 to 66 employees in last 12 years
• Experiencing difficulty filling commissioned positions. Continuous unfilled vacancies
• Three vacancies, plus fourth unfunded position in 2012
Chief Compaan highlighted the following unmet needs:
• Crime analyst/crime prevention officer — to provide timely interface within our agency, with public, and
with other law enforcement
• Professional standards — greater human resources support with recruitment and hiring
• Investigations — FTE assigned to respond o increasingly complex criminal investigations
• Technology support and systems — dedicated FTE to support systems (New World, SECTOR, mobile
data computers, automatic license place reader, in -car video) and to aid in cybercrime investigations
• Animal control/ordinance enforcement — parking, animal control, illegal dumping, abandoned vehicles,
pet licensing. Workload not easily absorbed by patrol
Chief Compaan reviewed the City's contract with the Town of Woodway for police services:
• Woodway pays on a per call basis ($137.50) plus $42.82 /hour for additional officers and relies on
Edmonds for 24/7 response capability
• The current contract extends through December 31, 2012
• Woodway's Police Department provides 264 hours of service /month (average of 8.7 hours /day)
including the Chief
• Fire and EMS — Woodway pays $473,638 (2012) and $515,468 (2013) based on a call load of 50
calls /year and a population of 1,190
• Most frequent responses are for alarms but also respond to suspicious persons, domestic violence,
burglary. The focus is on in- progress crimes
• Average time on scene per response is 15 -30 minutes
Chief Compaan reviewed revenue generated by the contract with Woodway for police services:
Year
Police Calls
Contracted Rate
I Total Revenue
2011
87
$137.50/call plus $42.82 /hour for additional officers
1 $12,867
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2010
79
$137.50 /call plus $42.82 /hour for additional officers
$11,625
2009
77
$125 /call plus overtime
$10,079
Chief Compaan provided a comparison of Edmonds and Woodway police budgets and per capita spending:
Chief Compaan explained earlier this year the Council passed a resolution to pursue a full service contract with
Woodway. Staff plans to research other small cities that are served via a contract such as Hunts Point, Clyde
Hill, etc.
Councilmember Buckshnis relayed Woodway Mayor Nichols' concern that Edmonds is not providing full
service but availability service. Discussion followed regarding how the per hour charge is calculated and
whether it reflects overhead costs, charging Woodway for the real cost of services, Woodway's ability to
contract for police services with another agency, Edmonds Police responding to an emergency in Woodway
regardless of who provides contract services, concern with continuing to contract with Woodway on a per call
basis, and the fact that Edmonds residents pay for police and fire services not on a per call basis but so that they
are available when needed.
Council President Peterson summarized in light of the resolution the Council passed in 2011, . Chief Compaan
and he will develop background information such as historic costs and data from other eastside cities served via
a police contract and develop a proposal to present to Woodway. It was also suggested that a range be developed
to reflect the cost that Edmonds taxpayers pay for police services.
Chief Compaan invited Councilmembers to SNOCOM's open house /tour tonight at 5:30 p.m. in Mountlake
Terrace
4. Economic Development:
• Updates on Westgate /Five Corners Special District Studies
Mr. Clifton explained the EDC submitted six higher recommended projects; one of them was special district
studies for Five Corners and Westgate. Last year Mr. Chave presented two concepts, one for Five Corners and
one for Westgate, and the City Council authorized staff and the EDC to work with the University of Washington
to prepare form -based codes related to each commercial area. The UW has prepared a draft code for Westgate
that the EDC will review at their February 15 meeting.
0 Highway 99 Transit Oriented Development
Planning Manager Rob Chave explained over the years regional transportation planning has progressed toward
transportation oriented development (TOD) around transit. Although zoning on Highway 99 potentially
encourages that type of development, the intent is to review Highway 99 regulations to ensure they do not
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Edmonds
Woodway
Total Police budget excluding
'ail but including SNOCOM, SERS, ESCA
$9,376,666
$202,303
April 2010 population
40,900
1,200
Per capital spending on police, excluding jail
but including SNOCOM, SERS, ESCA
$229
$169
Total calls for service
30,506
703
Calls per capita 2010
0.75
0.59
Total assessed valuation
$6,433,258,853
$471,163,064
Cost of total Police budget, excluding jail
but including SNOCOM, SERS, ESCA per
$1000 assessed valuation
$1.46
$0.43
Chief Compaan explained earlier this year the Council passed a resolution to pursue a full service contract with
Woodway. Staff plans to research other small cities that are served via a contract such as Hunts Point, Clyde
Hill, etc.
Councilmember Buckshnis relayed Woodway Mayor Nichols' concern that Edmonds is not providing full
service but availability service. Discussion followed regarding how the per hour charge is calculated and
whether it reflects overhead costs, charging Woodway for the real cost of services, Woodway's ability to
contract for police services with another agency, Edmonds Police responding to an emergency in Woodway
regardless of who provides contract services, concern with continuing to contract with Woodway on a per call
basis, and the fact that Edmonds residents pay for police and fire services not on a per call basis but so that they
are available when needed.
Council President Peterson summarized in light of the resolution the Council passed in 2011, . Chief Compaan
and he will develop background information such as historic costs and data from other eastside cities served via
a police contract and develop a proposal to present to Woodway. It was also suggested that a range be developed
to reflect the cost that Edmonds taxpayers pay for police services.
Chief Compaan invited Councilmembers to SNOCOM's open house /tour tonight at 5:30 p.m. in Mountlake
Terrace
4. Economic Development:
• Updates on Westgate /Five Corners Special District Studies
Mr. Clifton explained the EDC submitted six higher recommended projects; one of them was special district
studies for Five Corners and Westgate. Last year Mr. Chave presented two concepts, one for Five Corners and
one for Westgate, and the City Council authorized staff and the EDC to work with the University of Washington
to prepare form -based codes related to each commercial area. The UW has prepared a draft code for Westgate
that the EDC will review at their February 15 meeting.
0 Highway 99 Transit Oriented Development
Planning Manager Rob Chave explained over the years regional transportation planning has progressed toward
transportation oriented development (TOD) around transit. Although zoning on Highway 99 potentially
encourages that type of development, the intent is to review Highway 99 regulations to ensure they do not
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present any obstacles to TOD that could hinder the City's ability to seek funding. Everett, Lynnwood, and other
jurisdictions have revised their development codes and plans with regard to TOD; Edmonds can partner with
those jurisdictions so that development is similar along Edmonds' portion of Highway 99.
Mr. Clifton pointed out two areas that have the potential for TOD are near Community Transit Swift stations at
216`" and 238`t'. This is an appropriate topic for the Highway Hwy 99 Taskforce and the EDC to partner on.
Mr. Chave and Mr. Clifton responded to Council questions regarding PRSC's grant for TOD affordable housing
along I -5, staff's involvement with Growing Transit Communities, development of the International District,
and transfer of development rights.
• CTAC Update
Mr. Clifton explained CTAC's primary focus is the City's fiber. Washington State Department of Transportation
(WSDOT) gave the City 24 strands of fiber between Public Works and the ferry terminal and it now connects to
the Westin building in downtown Seattle. The City prevailed in two lawsuits to allow the sale of excess capacity
to the private sector.
CIO Carl Nelson reported on recent activity related to the City's fiber. He displayed a map of downtown that
illustrated the fiber route. The approach has been if fiber is close to a business or building, they are approached
about connecting up to fiber. He identified three active connection points: the Edmonds Center for the Arts
(ECA), the 110 James Building, and Rick Steves. In addition to being close to the fiber route, a
businessibuilding must have technically IT savvy staff.
Mr. Clifton reported Meeting Planners International, an organization that schedules regional and local meetings
in the United States, is holding a meeting of 150 representatives in Edmonds in May. During that meeting staff
will describe the meeting facilities in Edmonds and things people can do while visiting. The goal is to connect
fiber to the conference center, the Yacht Club, the library Plaza Room, and other meeting locations.
5. Parks, Recreation, and Cultural Services Update and 2012 Priorities
Parks and Recreation Director Carrie Hite reported on the following:
• Edmonds Interurban Trail Project — open late spring. On scope and on budget
• Old Milltown Plaza — underway, naming on next week's Council agenda, new owner has done repairs to
Old Milltown building, donated $7500 for development on their portion of property. New property
owners interested in opening restrooms as public restrooms downtown.
• Yost Pool — in CIP to replace boiler this year, likely in September, depends on REET fund availability.
Revenue down 20% in 2011, other local pools experienced same deflation of participation. Have
balanced budget for 2012. Received grant from Verdant to offer swim lessons for 3'd grade students.
• Former Woodway High School — have had discussion with Edmonds School District and Verdant.
Proposed for State jobs bill and capital budget. Shovel ready project.
• Edmonds Marsh — People for Puget Sound received a $100,000 from WIRA8 with $50,000 match
allocated from Public Works CIP and Parks CIP for feasibility study for enhancements and day - lighting.
• Underwater Park — due to concerns from citizens with visual impact of buoys used to manage the
underwater park, the City has been working with the local stewardship group and since summer, 10 -12
buoys have been removed and replaced with floating line.
• SR 99 International District Enhancements — completed this year
• Cultural Heritage tour — grant funded
• Flower Basket poles — will be installing
• Dayton Street Plaza outside old Public Works building — shovel ready, funds in in REST to complete.
Also included in State capital budget
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Ms. Hite highlighted 2012 projects:
• Non - resident fees go into effect
• Sales tax added to leagues and some recreational programs
• Yost Pool turns 40
• Business (concessions) in parks with a new revenue stream going to parks
• Social media — benefits of use for department
• Implement xfit camp
• Implement online registration for swim lessons
• Exploration of park impact fees
• Civic stadium exploration
• Esperance Park
• RCO grant submittals
• Aquatics
• Public restroom
Ms. Hite responded to questions regarding whether there was space for a pool and soccer fields at the old
Woodway High School, Edmonds School District's use of the old Woodway High School building, and the
adopt a flower basket program.
6. Human Resources Update
Ms. Hite reported by Edmonds code the Salary Commission is active every even year. The Commission reviews
all elected officials' (Judge, Mayor, and City Council) compensation and benefits and makes a recommendation
to the City Council. There are seven positions on the Commission; two are appointed by the City Council and
the remainder appointed by the Commission. Of the seven positions, three are returning Commissioners, one
Commissioner is seeking to renew her term (a City Council appointment), leaving three vacancies to be
appointed. The deadline to submit an application for the Commission is tomorrow. The process will be fast
tracked because by code the Commission must hold two public hearings and make a recommendation to Council
by May. The appointments will be presented to the Human Resources Committee in February and to the City
Council at the third meeting in February.
Ms. Hite explained the Council negotiated a medical reopener for both Teamsters and SEIU in June 2012. This
will need to be discussed in an executive session in the near future.
Council President Peterson advised the Council will also discuss Human. Resources issues tomorrow during
committee discussions.
Code Rewrites
Council President Peterson explained the intent of this item is a broad overview of the process, and then
tomorrow during committee assignments, discuss how to proceed in the coming year with regard to building
code changes.
• Development Codes
Building Official Leonard Yarberry explained the issue of a code rewrite first arose in 2006. Some work has
been done but little has been done since Development Services Director Duane Bowman left. This is a major
issue that needs to be addressed; the proposal is to proceed using internal staff which will entail little cost.
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Planning Manager Rob Chave described the code structure; the City Code is generally Titles 1 -10 which address
health, safety, finance, officials, boards and commissions, etc. The Development Code is Titles 15 -23 which
address building, planning, engineering, public works, design, natural resources, etc. The Code rewrite is the
Development Code rather than the City Code although there is linkage between the two.
Mr. Chave explained the current code structure has a great deal of legal terminology and it is structured like a
legal document but it is not user friendly. The rewrite will also enhance online access. Reasons for the rewrite
include amendments that have resulted in disjointed code; there is no entry point, roadmap or guide; it is not
easy to understand and there are inconsistencies and contradictions.
• Discrepancies in City Codes - How do we correct these?
Mr. Chave reviewed the proposed ECDC rewrite approach:
Current
Proposed
Written manual
Hyperlinked roadmap
Organized in topic -by -topic silos
Integrated according to project/purpose
Interspersing of defined and undefined terms
Clarity of terms and when they apply
Converted to online format
Built for online access
Implies segmented reviews and responsibilities
Implies shared interests and responsibilities
Mr. Chave reviewed process and tools:
• Focus on code organization and structure
• Staff commitment
• Collaboration effort (mind mapping, authoring, online formatting)
• Find and resolve conflicts, inconsistencies
• Use focus groups and online testing
• Window of opportunity in 2012
Discussion followed regarding incorporating the rewrite of countywide planning policies, making policy
changes separate from the rewrite, anticipated savings due to less staff time, timeframe for rewrite process and
check -in with Council, cost of code publishing, ensuring a more usable process, creating usability cases as test
cases, making use of online technology, and linkage between the ECC and ECDC.
Mr. Chave commented it would be helpful for the City Council/Mayor to make decisions this year about long
term organization structure so that can be incorporated into the code. Council President Peterson suggested
bringing those conflicts to the Council or the CS /DS Committee. Mr. Chave suggested this would be a good
subject for a joint meeting with Planning Board.
Port of Edmonds - Update on Harbor Square Master Planning Process
Port Commissioners Bruce Faires and Jim Orvis were also present.
Bob McChesney, Executive Director, Port of Edmonds, explained Edmonds and the Port are partners actively
engaged in promoting economic development for the benefit of the Edmonds community. The Port's mandate is
economic development; broadly defined economic development is a conversation about the future. He thanked
the City's planning staff, Rob Chave, Kernen Lien, and Stephen Clifton, for helping them understand how the
process works; the process is technical, complicated and time consuming.
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Mr. McChesney explained the mailed brochure regarding Harbor Square will be reprinted next week to address
flaws that were the result of printer errors. The corrections are not substantive but make the brochure more
accurate and easier to read. Most of the feedback the Port has received has been positive. The Port plans to move
forward with a vision for the future redevelopment of Harbor Square that reflects values of the entire
community. Benefits for the community include public access, open space, improved stormwater management,
marsh restoration, jobs, and an expanded tax base as well as economic feasibility.
In 2009 the Port conducted a bulk analysis to test scenarios for feasibility; the driving question in that process
was the minimum amount of development that needs to occur at Harbor Square in order to achieve an acceptable
level of economic feasibility sufficient to attract a private sector development partner. He clarified the Port will
not do the redevelopment; the Port will create the basis for a public - private partnership.
The next step is to have the plan concept approved by the Port Commission for adoption into the Port Master
Plan. A non - project, programmatic SEPA is required and is currently being prepared. He expected to make a
formal presentation to the Port Commission in late March and following further public comment and review,
presumably the Commission will approve the plan. The plan then must be reviewed by the Planning Board,
likely in April/May, and the Planning Board will forward a recommendation to the City Council regarding a
Comprehensive Plan amendment. He pointed out redevelopment will not happen for several years. First, the
City's Comprehensive Plan must be amended to allow the redevelopment and then there will need to be a
development agreement. The final determination with regard to the timeframe for redevelopment will be made
by the marketplace.
The only decision the Council will be asked to make this year is whether to incorporate the Port Master Plan into
an amendment to the City's Comprehensive Plan so that Harbor Square's future can continue to be developed
and discussed by the community. Development will not occur until the City, Port and the developer agree on a
proposal that from the City's and the Port's viewpoint incorporates the needs and values of the community and
from the developer's perspective is economically viable. The Port looks forward to continuing the conversation
with the City.
First Day Wrap -up
Council President Peterson briefly described tomorrow's agenda, anticipating more inter - Council discussion. He
suggested Councilmembers think about the goals of the Council committees in preparation for that agenda item.
The intent of the EDC discussion tomorrow is what is economic development.
Councilmember Buckshnis offered to send Councilmembers a sample of the Finance Committee mission
statement.
Councilmember Petso recalled last year the Council discussed having Audience Comments at the beginning of
Council meeting agendas. She requested Audience Comments be scheduled after the Consent Agenda.
Councilmember Plunkett recalled the existing policy, Audience Comments is first on the agenda unless there is
a public hearing, was approved at a previous retreat.
The first day of the retreat concluded at 4:45 p.m.
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FRIDAY FEBRUARY 3 2012 — CALL TO ORDER
Council President Peterson called the second day of the retreat to order at 9:41 a.m.
ELECTED OFFICIALS PRESENT
Friday, Februmy 3
Dave Earling, Mayor
Strom Peterson, Council President
Frank Yamamoto, Councilmember
Joan Bloom, Councilmember
Michael Plunkett, Councilmember
Lora Petso, Councilmember
Adrienne Fraley- Monillas, Councilmember
Diane Buckshnis, Councilmember
PUBLIC PRESENT
Friday, Februmy 3
Darrol Haug
Bruce Witenberg
Al Rutledge
Rich Senderoff
Ron Wambolt
Harry Gatjens
Val Stewart
Roger Hertrich
Don Hall
Ken Reidy
Council President Peterson briefly reviewed the agenda.
STAFF PRESENT
Friday, Februar3
Al Compaan, Police Chief
Stephen Clifton, Community Services /Economic
Development Director
Phil Williams, Public Works Director
Shawn Hunstock, Finance Director
Carrie Hite, Parks & Recreation Director
Carl Nelson, CIO
Frances Chapin, Cultural Services Manager
Carolyn LaFave, Executive Assistant
Jeff Taraday, City Attorney
Sandy Chase, City Clerk
Jana Spellman, Senior Executive Council Asst.
Jeannie Dines, Recorder
Audience Comments
Darrol Haug, Edmonds, commented yesterday's agenda was great but it shows shadows for the future. He
referred to February 29, a calendar adjustment or recalibration, noting today's agenda included recalibration
steps. Other dates in February include Valentine's Day, a day to spread the love around. He encouraged the
Council to embrace volunteers for what they do. He also referred to President's Day, and Abe Lincoln's
inability to tell a lie. He urged citizens, employees, and elected officials to correct errors and create a better City
using the truth. He wished the Council a great day today.
Bruce Witenberg, Edmonds, an original member of the Economic Development Commission (EDC) expressed
support for extending the EDC's sunset date. Candidates for Mayor and City Council campaigned on platforms
supporting economic development and economic development is a high priority in moving the community
beyond its current fiscal crisis. The EDC is a diverse group of individuals who work hard to build consensus
with input from the community. He recommended not adopting the proposed changes to the ordinance that
created the EDC as it is crucial not to constrain the EDC's ideas or stifle their creativity. If the Council does not
like the ideas the EDC present, he suggested either not putting them on the agenda or Councilmembers vote
against them. It is also critical that a significant number of the current EDC members be reappointed to ensure
continuity and to save staff and members time educating new members.
Al Rutledge, Edmonds, referred to yesterday's presentation from the Port, suggesting the City consider
transportation and the Senior Center during redevelopment of Harbor Square. Next, he suggested the public be
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allowed to call in comments during City Council meetings. He also suggested the Council take public comment
before and after Council deliberations during a public hearing.
Rich Senderoff, Edmonds, an original member of the EDC, appointed by Councilmember Plunkett, explained
the EDC has been positive as illustrated by the Council's support of the Five Corners and Westgate studies. He
commented on the strategic planning process, relaying he was impressed with the consultant's knowledge and
that they were listening and was confident a good product would result. He pointed out the strategic planning
process is not economic development; there will be economic development components but it has more to do
with bridging divides in the community and budgeting for priorities. He acknowledged the EDC is not perfect
and there are areas where it can improve such as more interaction with the Council as a whole and with the
Councilmembers who appointed each member. Having two Council liaisons to the EDC will also assist with that
interaction. He urged the Council to extend the sunset date of the EDC and allow the group to develop its own
personality. If the EDC goes astray, he urged the Council to inform them.
Presentation on Roles and Responsibilities in a Mavor /Council Form of Government
Council President Peterson introduced Pete and Carol Butkus, Butkus Consulting. Mr. Butkus summarized
his presentation and described his and his wife's backgrounds as local elected officials.
Ms. Butkus provided her observations from her service in local government (Councilmember and Mayor) and in
talking with other local elected officials:
• The Council is a legislative body
• Decisions are Council decisions, after a decision, Councilmembers cannot continue to voice personal
opinion to citizens
• Steep learning curve, reason for developing Council handbook
• Representative government, citizens not have time to study issues, that is the reason they elected
Councilmembers
• Compromise is not a bad thing, important to work with other Councilmember to reach a good decision
• Have fun. Pullman had a Waffle Award that was presented to the Councilmember who was the most
indecisive
• Be considerate, read packet, ask questions early/before meeting
• Work toward consensus, garner support, work issues
• Next week is new meeting, don't bear grudges or bring stereotypes into meetings
• Anticipate long term result of decisions
• There is never a time a Councilmember is off the record.
Ms. Butkus briefly reviewed materials from Pullman, Olympia and Spokane.
Mr. Butkus described his first exposure to the City Council as a police officer and later as a Mayor, emphasizing
the importance of reading Council packets before meetings. He reviewed Pullman's organizational chart,
pointing out boards and commissions are advisory to the Council.
Mr. Butkus described a hypothetical case where a school official asks at a Council meeting for the City to install
a traffic signal at a busy intersection where students cross due to recent district changes and a citizen makes an
emotional appeal. This example illustrated the importance of communication and the Council working with staff
to develop a solution.
Mr. Butkus presented another hypothetical situation where a Councilmember was talking with the Parks
Superintendent and asked the Superintendent to make a presentation to Council that night regarding a project.
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Mr. Butkus asked each Councilmember to comment on what was right/wrong with that request. Mayor Earling
described the Council's process for putting things on an agenda.
Mr. Butkus presented another hypothetical situation where the budget is on the agenda for adoption following a
long process and a Councilmember asks to have a decision package included for a police officer. The Council
discusses the decision package and is unable to reach a consensus. The Mayor identifies several options. This
example illustrates the importance of useful, respectful communication.
Mr. Butkus conducted a group exercise where he asked Councilmembers and Mayor to identify ways they
would like to have business conducted and then prioritize the list:
4 votes Legal questions and how many Councilmembers does it take to give direction to the City
Attorney
6 votes Contact with staff by Council as appropriate. Copy Mayor on issues related to policy or that
consume staff time
2 votes Citizens' concerns — how comment back to, 1) make sure a response is given, and 2)
coordination among Mayor and Council needed.
2 votes Open communication with each other and staff
2 votes Open door policy with Mayor
0 votes Communication with staff and mayor
1 vote Mayor and Council communication goes to all Council
1 vote Protocol on communication — same for all of us
2 votes Utilize everyone's expertise
During the above exercise there was discussion regarding authority to direct the City Attorney, being cautious
about what is written in email, designating one person to respond to citizens, importance of committees making
recommendations to Council, and rescheduling an agenda item rather than endless debate if it is clear the
Council is not going to take action,
The retreat was recessed for lunch from 12:14 p.m. to 1:13 p.m.
Mr. Williams reported he met with PUD staff on site today regarding the Main Street project and determined it
will be possible to move overhead power on the south side between 5`h and 6th into the alley at virtually no cost
to the City. He planned to seek a partnership with the PUD on the Five Corners intersection.
Committees: Roles and Responsibilities
Council President Peterson suggested the Council clarify roles and responsibilities of committees for this
Council, the public and future Councils.
The Council and staff discussed what issues are sent to which committee, how an issue is presented to two
committees, the previous practice of holding work sessions at Council meetings on the 4`" Tuesday, noticing
committee meetings so that Council can meet as a whole if necessary, and work sessions allowing formal
meetings to move more quickly.
Council President Peterson advised he would work toward having the 4th Council meeting be a work session,
and taking action at regular meetings.
• Expectations
Council President Peterson summarized options for committee action: 1) schedule on the Consent Agenda, 2)
forward to full Council, 3) do not move forward, or 4) schedule on work session agenda. The way to get an item
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before the Council is first a committee meeting or work session. Issues that have a financial impact will be
discussed at a work session rather than just by the Finance Committee.
It was the consensus of the Council to change the name of the Community Services /Development Services
Committee to the Public Works, Parks and Planning Committees.
0 Mission Statements
Committees will determine whether to develop a mission statement. Councilmembers Buckshnis and Yamamoto
will develop a mission statement for the Finance Committee.
• Clarify the Public Safety /Human Resources Committee
It was the consensus of the Council to change the name of the Public Safety/Human Resources to Committee to
the Public Safety and Personnel Committee.
0 Community Outreach, Tree Board
Council President Peterson explained there has been a proposal to restart the Community Outreach Committee.
Councilmember Plunkett recalled the Community Outreach Committee was discontinued after 3 years; no new
methods of communicating were identified. Mayor Earling commented on the potential for an electronic
newsletter.
Discussion followed regarding whether to form a code rewrite committee so that the code rewrite is Council and
citizen driven, technical expertise required for the code rewrite, having staff make periodic presentations at
Council work sessions regarding the rewrite, the proposal by staff to restructure the code, providing opportunity
for citizen comment but having professionals assemble the changes, citizen knowledge that could benefit the
process, concern with citizens participating for their own benefit or at least that perception, proposal to have
user groups test the model, ability for any citizen to identify code conflicts regardless of whether there is a
committee structure, and asking staff whether forming a committee in the future could be helpful.
The Council agreed to seek feedback from Planning Manager Rob Chave and Building Official Leonard
Yarberry regarding forming a code rewrite committee and schedule further discussion on a work session agenda.
Council President Peterson suggested enhancing the Council portion of the website with more updates, etc. and
working with the Mayor on an electronic newsletter and then consider whether a Community Outreach
Committee is needed. It was the consensus of the Council to add a Council liaison to the Tree Board and to
make it a paid committee position.
• Ethics
Council President Peterson recalled there has been discussion about developing a code of ethics for
Councilmembers. Councilmembers Fraley - Monillas, Bloom and Petso offered to serve on an ad hoc committee
that would review other cities' codes and present a draft to the Council.
• Miscellaneous
Mr. Taraday explained a special meeting notice must be issued for Tuesday committee meetings that begin at
6:00 p.m. If the Council wished to continue holding committee meetings at 6:00 p.m., he suggested revising the
code to reflect that start time.
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Council President Peterson suggested the Council consider starting all Council meetings at 6:00 p.m. and
holding executive sessions at the end of the meeting.
Edmonds Center for the Arts (ECA)/Public Facilities District (PFD) and the Role of the City
ECA Board Members Steve Sheldon and Tom Tomberg and PFD Board Members Bob Rinehart and John
McGibbon were also present.
Joe McIalwain, Executive Director, Edmonds Center for the Arts, described the governance structure:
• Snohomish County PFD established in 2011 for the purpose of creating and operating facilities to
generate tourism. They oversee four projects:
• Comcast Arena
• Lynnwood Convention Center
• Edmonds Center for Arts
• Future of Flight Museum
• Edmonds PFD is an independent public agency and is the owner /operator of ECA.
• Edmonds PFD is affiliated with the City through a four -party Interlocal Agreement
• City Council approves changes to PFD charter
• City Council appoints PFD Board Members
• City Council guarantees bonds issued in 2002 and in 2008 for the renovation and operation of the
Center
Mr. McIalwain described the differences between the PFD and ECA:
• Edmonds Public Facilities District
• An independent public agency established under RCW 35.57
• Audited annually by the State Auditor's Office
• Owns the land and all facilities on the campus
• Statutory authority over the operation and programs of the Center
• Does business as "Edmonds Center for the Arts" or "ECA"
• The Not -for- Profit Organization (ECA)
o A separate 5016 corporation
o Official name of the corporation: Edmonds Center for the Arts
0 18 member Board of Directors at present (up to 24 positions)
o Mandate: to support Edmonds Public Facilities District in its operation of the Center
Mr. Mclalwain reviewed the organization chart. The campus facilities include:
• Theater, lobby — build 1939, renovated 2006
• Gymnasium — built 1939
• School building — originally built 1921, renovated 1939
• Music building — build 1962, currently storage only
• Parking lot (90 spaces)
The ECA is solely responsible for the ongoing maintenance of the facilities and grounds. Edmonds Landscaping
generously provides weekly landscape maintenance at no cost as a donation to the not - for - profit. District staff
manages maintenance projects directly or contracts for services with outside vendors at its own expense. Mr.
Mclalwain reviewed art programs and services at the Center:
• ECA's season presentations
• Approximately 25 artists /groups from around the world each season
• Music, theater, dance, comedy, special attractions
• Community Partner Organizations
o Cascade Symphony Orchestra
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• Olympic Ballet Theater
• Sno -King Community Chorale
• Edmonds Community College
• City of Edmonds Cultural Services Department
• Gymnasium
• Sno -King Youth Club
• Sports and Recreation organizations
• Arts activities and special events
• Lease agreements
• Community Christian Fellowship
• Stella Maris Academy (Montessori)
• Clearwire, Inc. (rooftop cellular lease agreement)
He described the cultural and economic impact of the Center on the community. He highlighted preliminary
financial information for 2011 year -end:
• Ticket sales revenue up 33%
• Rental revenue up 5%
• Contributed revenue up 20%
• Total operating revenue up 20%
Mr. McIalwain reviewed the Center's capital debt:
• EPFD retains approximately $10 million in capital debt
• 2002 bond issue - $7 million ($6 million — PFD, $1 million — City)
• City makes bond payment directly
• PFD reimburses City for these payments with Tier 1 funds
• Private Capital Campaign — $7 million
o Combination of individuals, corporations and foundations
• 2008 bond issue - $4 million
• To cover the balance of the renovation costs
• Bonded against a new revenue stream (Tier 2) from Snohomish County PFD
• Bonds guaranteed by City of Edmonds via Contingent Loan Agreement
Mr. McIalwain reviewed sales tax revenue streams:
A. Direct local -level sales tax rebate
o Covers portion of the 2002 bond issue
B. Tier 1 county -level sales tax rebate
o Covers remainder of the 2002 bond issue
C. Tier 2 county -level sales tax rebate
• Intended to cover 2008 bond issue
• Projected revenues exceeding $200,000 annually
• Economic crisis resulted in 100% loss of revenue from the Tier 2 rebate in 2012
• This unrealized funding source is the case of capital shortfall
Mr. McIalwain reviewed the projected capital shortfalls 2001 -2012. He described potential solutions to the debt
shortfall which include:
• City /PFD/ECA Task Force — representatives from each meet monthly to strategize and pursue new
revenue for debt service such as:
• Naming rights
• Extension of PFD tax rebate which may allow refinance of 2008 bonds
• Economic recovery
• Improved operating performance, net revenues to capital
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• Improved performance in operation will also help meet future bond debt obligations
Opportunity and challenges include:
• Facilities
• Tremendous history
• Significant square footage
• Renovated portion — capital replacement and renewal
• Non - renovated portion — renovation and repairs
• Future development
Programs and services
• Expanded presenting season
• Expanded rental program
• Expanded education /outreach
• Summer camps and programs
• Expanded sports and recreation activities
• Visual arts activities
Partnerships
• City of Edmonds
• Edmonds Community College
• South County Senior Center
• Edmonds Arts Festival Foundation
• Others
Mr. Mclalwain advised the PFD /ECA just released a Request for Proposals for its own strategic planning
process and has formed a committee to oversee the process. He assured all stakeholders will have an opportunity
to engage in that process.
Council President Peterson encouraged Councilmembers to tour the ECA.
Economic Development Commission (EDC)
Council President Peterson explained the question soon to be before the Council is whether to extend the sunset
date of the ECA. The current sunset date is April 29, 2012. The Council can choose to change the mission of the
EDC, discontinue the Commission, redefine the definition of economic development, etc.
Council, Mayor and staff comments included the following:
• Some EDC members view economic development as anything that brings in revenue to the City, others
view it as business activity
• Creation of residential housing units is not economic development
• The EDC is looking at ways to produce revenue for City indirectly /directly
• The City needs to foster economic development to generate revenue as well as foster quality of life.
• Important to bring in businesses that generate revenue, but what can the City do to attract businesses
• Fostering an economic base attracts good quality housing and people to live here
• Diverse housing /population attracts businesses
• EDC should concentrate on tourism, sports tourism
• Think of economic development in terms of the financial future of the City
• Need to advertise broadband capacity
• Think outside what one project will bring to the City
• Economic development is not just businesses retention /recruitment, it is a combination of activities and
policies established to improve the City's economic health and quality of life
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• Economic development includes investing in education of children and business owners, investing in
critical infrastructure, environmental and fiscal sustainability
• Be a welcoming community to all
• Concern with definition of economic development as any and all money coming to the City
• Not interested in the EDC considering sources of revenue that citizens and the City Council have
rejected in the past such as business taxes, gambling, taller buildings, transport fees, etc.
• Frightening and illogical not to limit revenue sources the EDC considers for economic development
• New residential units cannot be the only source of revenue to close the budget gap
• What would the economic impact have been to the City if a conference center, hotel/restaurants, and
public open space had been developed at Pt. Edwards
• Long term sustainability and quality of life is the most important
• Need to give EDC parameters so have they have direction
• Economic development was not specifically defined when EDC created
• Cannot support extending the EDC's sunset date unless their focus is narrowed
• Proposed amendment narrows focus of EDC
• Support economic development but not taxing citizens
• Should not stifle ideas /micromanage the EDC before ideas even reach the Council
• Purpose of EDC to bring forth ideas; City Council has ultimate decision whether to pursue or not
• Economic development versus economic growth; economic growth is a component of economic
development
• Several Councilmembers have not appointed EDC members
• One of important things from EDC is the strategic planning process. If focus was narrowed could the
EDC have done that?
• Leaving EDC's focus open allows opportunity for ideas
• Support extending EDC
• EDC seemed only to be asking the Council for money for studies and a proposal for development
agreements
• There are other volunteers groups that do land use (Planning Board), fiber (CTAC), etc.
• The EDC's mission may be so broad that worthwhile ideas are not being pursued
• If Council wants to put some control on the EDC, don't limit them to only opening new businesses on
Main Street. Their charge needs to be broad enough to include quality of life and controlling tax
increases
• EDC discussions generate a lot of ideas; some come move forward, some do not. In 21/2 years the only
item that led to the proposed changed is non - transport EMS fee
• It is the EDC's role to propose all kinds of economic development strategies and revenue sources; it is
up to the City Council to say yes or no
• Need to appoint new members to EDC and amend the ordinance
• Development of sports fields at old Woodway High School is an example of sports tourism
• When the EDC proposed a non - transport fee, they only wanted the Council to talk about it
• EDC is a new commission, will have growing pains
• Empower the EDC and move forward. Important to keep momentum going
Council President Peterson advised he would schedule changing the language in the ordinance on a future
Council agenda. Council suggestions for that discussion included:
• Clarify the Council liaison's role
• Have a Port liaison rather than Port Commissioners serving as members
• Amend the language so members are not elected officials
• Make Commissioner appointments later
• Stagger Commissioners' terms
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Introduction to SUDDort 7 Citizen Volunteer Emereencv Response
Ken Gaydos, Support 7 Fire — Police Volunteer Chaplaincy Services, provided a video of tragic events that
occurred before Support 7 was founded and events where Support 7 has provided support services for friends
and relatives of victims and emergency responders at the scene.
Mr. Gaydos explained Support 7 began in 1985 with a surplus aid unit to provide a place for friends and
relatives of victims at the scene and refreshments for police /fire. He commented on the volunteer chaplains and
lay men and women who provide support as well as business partners who are part of the team. Support 7 is
housed at the Lynnwood Civic Center Fire Station.
A non - profit was established and they have assisted approximately 500 cities across the country in establishing
similar programs as well as introducing similar programs in the Philippines, Hawaii, and Haiti.
The retreat was adjourned at 5:42 p.m.
Edmonds City Council Retreat Draft Minutes
February 2 -3, 2012
Page 22