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06/22/2010 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES June 22, 2010 At 5:55 p.m., Council President Bemheim and Councilmembers Buckshnis, Plunkett and Fraley- Monillas interviewed Arts Commission candidate Lois Rathvon in the Council Chambers, 250 5th Avenue North, Edmonds. Also present were Frances Chapin, Cultural Services Manager, and Sandy Chase, City Clerk. The interview concluded at 6:01 p.m. At 6:05 p.m., the City Council met as the Edmonds Transportation Benefit District Board in the Council Chambers. Please refer to the separate minutes prepared for that meeting. The Edmonds City Council meeting was called to order at 7:10 p.m. by Mayor Haakenson in the Council Chambers. The meeting was opened with the flag salute. ELECTED OFFICIALS PRESENT Gary Haakenson, Mayor Steve Bernheim, Council President D. J. Wilson, Councilmember Michael Plunkett, Councilmember Adrienne Fraley- Monillas, Councilmember Strom Peterson, Councilmember Diane Buckshnis, Councilmember 1. APPROVAL OF AGENDA STAFF PRESENT Jim Lawless, Assistant Police Chief Stephen Clifton, Community Services /Economic Development Director Noel Miller, Public Works Director Jerry Shuster, Stormwater Eng. Program Mgr. Debi Humann, Human Resources Director Frances Chapin, Cultural Services Manager Sandy Chase, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder COUNCIL PRESIDENT BERNHEIM MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. 2. CONSENT AGENDA ITEMS Mayor Haakenson relayed Councilmembers' requests to remove Items E and F from the Consent Agenda. COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCILMEMBER PETERSON, TO APPROVE THE CONSENT AGENDA AS AMENDED. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: A. ROLL CALL B. APPROVAL OF CITY COUNCIL MEETING MINUTES OF JUNE 15, 2010. C. APPROVAL OF CLAIM CHECKS #1.1.9519 THROUGH #119671 DATED JUNE 17, 2010 . FOR $642,684.05. APPROVAL OF PAYROLL DIRECT DEPOSIT AND CHECKS #49412 THROUGH #49465 FOR THE PERIOD JUNE 1 THROUGH JUNE 15, 2010 FOR $650,808.81. Edmonds City Council Approved Minutes June 22, 2010 Page 1 D. ACCEPTANCE OF LIST OF BUSINESSES APPLYING FOR RENEWAL OF THEIR LIQUOR LICENSES WITH THE WASHINGTON STATE LIQUOR CONTROL BOARD, JUNE 2010. ITEM E: CONFIRMATION OF MAYOR'S APPOINTMENT OF LOIS RATHVON TO THE ARTS COMMICCinN Cultural Services Manager Frances Chapin introduced Lois Rathvon, commenting on her background in performing arts and dance. Ms. Rathvon commented it was an honor to become a member of the Arts Commission and she looked forward to working with them. COUNCIL PRESIDENT BERNHEIM MOVED, SECONDED BY COUNCILMEMBER PETERSON, TO CONFIRM THE MAYOR'S APPOINTMENT OF LOIS RATHVON TO THE ARTS COMMISSION. MOTION CARRIED UNANIMOUSLY. ITEM F: CONFIRMATION OF PHIL WILLIAMS AS THE NEW PUBLIC WORKS DIRECTOR FOR THE CITY OF EDMONDS. Councilmember Wilson pulled this item from the Consent Agenda to vote against it. He found it inappropriate to appoint a senior director level position at this time as the new mayor may wish to form his /her own team. Councilmember Buckshnis advised there were originally four finalists and two withdrew. Mayor Haakenson agreed two withdrew for unknown reasons. She asked whether Mayor Haakenson had already negotiated with Mr. Williams and was the Council's confirmation simply a rubber stamp. Mayor Haakenson agreed, explaining per the City's Code the Council was provided an opportunity to interview candidates. He recalled four of the six Councilmembers supported the selection of Mr. Williams which was also his choice for the position. Mayor Haakenson offered him the job and tonight was seeking confirmation from the Council. Councilmember Wilson explained the Council provided their feedback to Mayor Haakenson following the interview process. It was within the Council's prerogative to change their mind now. Mayor Haakenson clarified it was his choice; per code he asked the Council to participate in an interview process and provide him their recommendations. The majority of the Council's recommendations matched his choice and he was hiring Mr. Williams regardless of whether the Council confirmed his selection. COUNCIL PRESIDENT BERNHEIM MOVED, SECONDED BY COUNCILMEMBER PETERSON, TO CONFIRM HIRING PHIL WILLIAMS AS THE NEW PUBLIC WORKS DIRECTOR FOR THE CITY OF EDMONDS. MOTION CARRIED (4 -2), COUNCILMEMBERS BUCKSHNIS AND WILSON VOTING NO. 3. AUDIENCE COMMENTS David Millette, Edmonds, representing a group of homeowners and condominium owners in the 80th Avenue West area, expressed their thanks to Councilmembers Plunkett, Fraley- Monillas, and Buckshnis and Mayor Haakenson for voting to preserve the process by which the City reviews zoning changes. Harry Gatjens, Edmonds, referred to Mayor Haakenson's budget presentation at the last Council meeting, the Council's discussion regarding the formation of a levy committee, and whether to place a levy on the ballot. He expressed concern with a one -year levy that would result in the City being in the same situation in two years. He provided an analysis of the numbers Mayor Haakenson provided, explaining over four years revenues increased 2.0 — 2.4% and expenses increased 4.2 — 4.6 %. He Edmonds City Council Approved Minutes June 22, 2010 Page 2 provided an analysis of various revenue and expense increases by category and the net deficit that would create, summarizing a $3 million levy would have virtually no effect on the City's budget situation in 4 years. He provided an analysis that reduced the yearly increase in expenses to 2.5 — 2.9% which improved the outlook, He summarized a levy may be necessary and it will be important for the City to either control expenses or identify a new revenue source to avoid continual levies. Al Rutledge, Edmonds, reported he attended the Lake Ballinger Forum meeting and suggested the City include funds in the budget for improvements in Lake Ballinger. With regard to the proposed water rate increases, he cautioned the Council not to raise rates so significantly that they affected citizens' drinking water consumption. Todd Cloutier, Edmonds, commented along with the Transportation Plan presented at the TBD Board meeting, the Council would have the opportunity to review three long term plans individually. Each plan prioritizes and budgets projects to improve the City's infrastructure. He requested the Council ask staff to review the plans together to determine if there were efficiencies by combining projects such as having a repaving project and water main project coincide. He recognized this could require a change of priorities in each plan but it could also result in tearing up fewer streets and stretching the City's infrastructure dollars. Roger Hertrich, Edmonds, reported he attended the Planning Board meeting where the Stormwater and Surface Water Management Comprehensive Plan and proposed rate increase was discussed. He suggested the rate increases were exorbitant; an 8.5% increase followed by an 8% increase and another 7.5% increase. He questioned the need for these rate increases when over 75% of the water mains had been rebuilt. He opined the Plan and the proposed rate increase was simply to hire more engineers. He acknowledged there were storm and surface water management issues such as Lake Ballinger and suggested the planning and rate increases be slowed to allow the City to determine what was really needed. Maria Montalvo, Edmonds, recognized Mayor Haakenson for his service to the citizens of Edmonds. Sandy Chase, Edmonds, stated she wanted to acknowledge that this evening is Mayor Haakenson's last City Council Meeting. She commented on the numerous Tuesday evenings she has spent with Mayor Haakenson at these meetings. She began working for the City in 1993; a few years later Mayor Haakenson applied for a Council vacancy. She recognized the difficulty of the Mayor's job, noting many citizens see his job as only ribbon cuttings, proclamations and speaking to groups such as the Rotary and Chamber of Commerce. However, she pointed out he has also attended every difficult event in the City from a fire to shootings to the bedside of a critically ill City employee, and when there were layoffs. She spoke to his amazing caring side, recalling numerous times she has accompanied a citizen experiencing difficulties to his office where he has listened, often visiting the citizen's home to investigate the problem and doing whatever possible to resolve their problem. She thanked Mayor Haakenson for his service to Edmonds. 4. INTRODUCTION TO THE UPDATE OF THE STORM AND SURFACE WATER MANAGEMENT COMPREHENSIVE PLAN AND PROPOSED STORM AND SURFACE WATER RATE INCREASES. Stormwater Engineering Program Manager Jerry Shuster explained development of the Plan has occurred over the past year with the assistance of Herrera Environmental Consultants and FCS Group. He reviewed the public process in the development of the Plan that included posting of the initial draft on the City's website on May 26, introduction to the Planning Board on May 26, SEPA Determination of Non - Significance issued on June 3 and conclusion of the written appeal period on June 17, Department of Commerce 60 -day review period began on June 7, Planning Board hearing on June 9, revised draft posted Edmonds City Council Approved Minutes June 22, 2010 Page 3 on the City's website on June 22, introduction to the City Council on June 22 and City Council public hearing scheduled on July 6. Mr. Shuster described the Storm and Surface Water Comprehensive Plan: • An element of the City's Comprehensive Plan; a high level planning document used to develop the Capital Facilities Plan and Capital Improvement Plan. • Guides the operation of the City's Storm and Surface Water Utility to provide an appropriate level of service to its customers (flood, water quality and habitat protection). • Assists the City in complying with applicable federal, state and local regulations. • Identifies and proposes solutions to known flooding, water quality and habitat problems. • Details actions necessary to ensure compliance with the applicable federal, state and local requirements, especially the Western Washington Phase II Municipal Stormwater Permit. • Presents an operation and maintenance plan, capital improvement plan and financial plan to address known problems and compliance with federal, state and local regulations. Mr. Shuster explained the Western Washington Phase II Municipal Stormwater Permit is a comprehensive set of stormwater regulations issues by Department of Ecology implementing the federal Clean Water Act. He explained since Edmonds is primarily a built out city, most of the identified issues are the result of. • Uncontrolled runoff from past development prior to the implementation of the City's first stormwater code in mid -1977 • Aging infrastructure • Regulatory mandates • Substandard or lack of stormwater infrastructure acquired in areas annexed from Snohomish County over a number of years (southwest Edmonds) The Plan needs to be updated for the following reasons: • The last Plan was completed in 2003 prior to the effective date of the Phase II Permit Re- prioritization of capital projects based on accomplishments and new issues Goals and policies in the City's Comprehensive Plan last updated 1985 are outdated (Water Resources and Drainage Management land use element) Programmatic elements in the Plan are largely driven by requirements of the Phase II Permit: • Review of development submittals for compliance with the City's Stormwater Code • Inspect and maintain publicly -owned and operated detention and water quality systems • Inspect and track maintenance of privately -owned and operated detention and water quality systems • Illicit discharge detection and elimination program — proactive program to find illicit dischargers • Public education and outreach program • Monitoring — prepare for in 2011 and begin in 2012 Mr. Shuster described the City's current operation and maintenance program: City Owned Item Quantity Catch Basin 6,600 Manholes 'unctions) 1,325 Flow Control Manholes 103 Stormwater Pie 728,308 linear feet or 138 miles Open Ditches 79,850 linear feet or 15.1 miles Culvert Inlet Trash Racks 47 Edmonds City Council Approved Minutes June 22, 2010 Page 4 Detention/Water Quality Vaults, Ponds or Other 22 Street Sweeping annually 2,040 lane miles He explained compliance with the Phase II Permit Program requires additional staff: Mr. Shuster explained capital projects were divided into two tiers. Tier 1 projects accomplish the following: • Provide a basic or essential level of service from the Stormwater Utility that implement CIP projects that keep the City in compliance with local, state and federal regulations especially related to the Phase II Permit • Long standing reoccurring flooding issues such as in southwest Edmonds and around lower Perrinville Creek • Citywide drainage repair projects • Includes $50,000 /year to pay for the stormwater portion of transportation projects • 100% stormwater rate funded (includes revenue bond payments Tier 2 projects primarily benefit aquatic habitat and provide an enhanced level of utility service. The following 4 Tier 2 projects cost twice as much as the 17 Tier 1 projects: • Edmonds Marsh restoration • Willow Creek Daylighting in Marina Beach Park • Shell Creek Channel Restoration in Yost Park • Perrinville Creek High -flow bypass and bank stabilization /restoration • 25% rate funded and 75% from outside sources (unsecured) He displayed a map identifying the location of the proposed capital projects. With regard to how to pay for the projects, he explained fees collected for the stormwater utility have been used for an increasing number of items resulting from increased population growth and accompanying development, annexing areas from Snohomish County with inadequate drainage systems, increasing regulatory mandates for improving water quality and aquatic habitat in the surface waters that receive the City's stormwater runoff. The Plan includes a 6 -year financial analysis. He explained the focus was on the present until 2012 because the current Phase II Permit expires in early 2012 at which time the state will impose a new permit that will be more restrictive. A rate adjustment will be necessary due to additional program costs to comply with Phase II Permit required by Federal Clean Water Act and funding needed for capital projects. Staff recommends 21 /z year adjustment only, the minimum necessary to comply with the Permit and complete capital projects. He provided the following anticipated increase in rates: (Includes Tier 2 Projects) Available Needed 2010 2010 2011 2012 Total Engineering FTE 1.1 2.2 2.3 2.3 Total Public Works FTE 5.4 5.4 6.5 6.5 Grand Total FTE 6.5 7.6 8.8 8.8 Mr. Shuster explained capital projects were divided into two tiers. Tier 1 projects accomplish the following: • Provide a basic or essential level of service from the Stormwater Utility that implement CIP projects that keep the City in compliance with local, state and federal regulations especially related to the Phase II Permit • Long standing reoccurring flooding issues such as in southwest Edmonds and around lower Perrinville Creek • Citywide drainage repair projects • Includes $50,000 /year to pay for the stormwater portion of transportation projects • 100% stormwater rate funded (includes revenue bond payments Tier 2 projects primarily benefit aquatic habitat and provide an enhanced level of utility service. The following 4 Tier 2 projects cost twice as much as the 17 Tier 1 projects: • Edmonds Marsh restoration • Willow Creek Daylighting in Marina Beach Park • Shell Creek Channel Restoration in Yost Park • Perrinville Creek High -flow bypass and bank stabilization /restoration • 25% rate funded and 75% from outside sources (unsecured) He displayed a map identifying the location of the proposed capital projects. With regard to how to pay for the projects, he explained fees collected for the stormwater utility have been used for an increasing number of items resulting from increased population growth and accompanying development, annexing areas from Snohomish County with inadequate drainage systems, increasing regulatory mandates for improving water quality and aquatic habitat in the surface waters that receive the City's stormwater runoff. The Plan includes a 6 -year financial analysis. He explained the focus was on the present until 2012 because the current Phase II Permit expires in early 2012 at which time the state will impose a new permit that will be more restrictive. A rate adjustment will be necessary due to additional program costs to comply with Phase II Permit required by Federal Clean Water Act and funding needed for capital projects. Staff recommends 21 /z year adjustment only, the minimum necessary to comply with the Permit and complete capital projects. He provided the following anticipated increase in rates: (Includes Tier 2 Projects) Current 2010 2011 . 2012 Adjustment/month 66¢ 72¢ 78¢ $ /month $8.31 $8.97 $9.69 $10.47 Edmonds City Council Approved Minutes June 22, 2010 Page 5 Mr. Shuster provided a comparison of 2010 single family residential stormwater utility rates for 10 comparable cities that illustrated the highest (Redmond) at $16.56 and the lowest (Lynnwood) at $6.70. The proposed Edmonds Tier 1 funding scenario is $8.93 /month and $8.97 for the Tier 2 funding scenario. He noted several of the cities with higher rates than Edmonds were hiring employees to assist with complying with the Phase II Permit. In cities with rates lower than Edmonds (Lynnwood and Mountlake Terrace), their Councils have recently approved stormwater rate increases: Mountlake Terrace approved a 16% increase from 2010 to 2012 and Lynnwood approved a 27% increase from 2010 to 2012. Councilmember Buckshnis observed only three of the projects in the 2003 Plan had been completed and there had been three emergencies. She asked whether the 2003 Plan was overly zealous. Mr. Shuster answered he was hired in 2008. Before that time there had been significant staff turnover in the Engineering Department and there were several large emergency projects in response to the 2007 storm event. Public Works Director Noel Miller agreed the primary reason was staff turnover, two other Stormwater Engineers left after approximately a year. Councilmember Buckshnis referred to plans to increase the priority of day lighting Willow Creek from WIRA 8's ten year plan to the three year plan with a 15% match. She asked whether projects could be moved from Tier 1 to Tier 2. Mr. Shuster advised the Plan anticipates funding of that project in 2014; . WIRA 8 staff have indicated grant funds were unlikely to be awarded until 2014. The rate structure is established to accumulate funds for the City's portion of the project in 2014. Councilmember Wilson observed Shoreline's monthly stormwater utility rate was $10.83 and asked how their program differed from Edmonds' program. Mr. Shuster answered when he worked for Shoreline, he managed a Water Quality Specialist, a Stormwater Technician and an Environmental Education Specialist. In Edmonds he manages himself. Councilmember Wilson asked the difference in the value of Shoreline's program versus Edmonds' program. Mr. Shuster responded Shoreline has a much more organized private system inspection program that they inherited from King County. Shoreline also does more environmental education. Edmonds Parks & Recreation does a great deal of the education such as the watershed fair. He commented on the importance of educating citizens how everyday actions such as driving, application of fertilizer and pesticides, etc. impact stormwater and ultimately Puget Sound. Councilmember Wilson referenced Mr. Cloutier's comment regarding integrating the Plans; he asked how this Plan relates to the Sustainability Element. Mr. Shuster referred to the Council's recent approval of the new Stormwater Code that allows developers /homeowners to use low impact development techniques such as rain gardens, permeable pavement, green roof, etc. which the prior Stormwater Code did not allow. When projects in the Plan are designed, consideration will be given to low impact development techniques such as a rain garden instead of a catch basin. The policies also incorporate sustainability. Councilmember Wilson requested Mr. Chave comment at the public hearing regarding how the Storm and Surface Water Management Comprehensive Plan relates to the Sustainability Element. COUNCILMEMBER WILSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO SCHEDULE A PUBLIC HEARING ON JULY 6. MOTION CARRIED UNANIMOUSLY. 5. PRESENTATION ON THE 2010 WATER SYSTEM COMPREHENSIVE PLAN UPDATE AND PROPOSED WATER RATE INCREASES. Public Works Director Noel Miller explained staff has worked extensively with Murray, Smith & Associates, Inc. and FCS Group over the past year on the Water System Comprehensive Plan. Edmonds City Council Approved Minutes June 22, 2010 Page 6 Tom Lindberg, P.E., Murray, Smith & Associates, Inc. introduced Nihat Dogan, Project Manager, FCS Group, who developed the financial chapter of the Water System Plan and the associated Water Rate Analysis. Mr. Lindberg explained the purpose of the Water System. Plan was: • Long -term guidance document with 6 -year focus • Required by Department of Health every six years • Identify improvements for City's CIP program • Evaluate water rates and charges • Last water system plan updated in 2002 He identified new regulatory requirements since 2002: • Drinking water regulations updated in 2004 and 2009 • Department of Health updated water system design guidelines in 2009 • 2003 Municipal Water Law • 2007 Water Use Efficiency Rule He identified and provided photographs of major water system facilities including: • Alderwood Supply Station - Olympic View Drive & 62nd Ave • 1.5 million gallon (MG) buried concrete Yost Reservoir • 1.5 MG buried concrete Seaview Reservoir • 1.5 MG and 3.0 MG reservoir and pump station at Five Corners He provided an overview of the chapters and appendices in the Plan. Major work elements in the plan that include: • Data collection • Water demand evaluation • Water system analyses • Water system improvements • Financial program He reviewed the current status of the plan: • All elements complete and reviewed by City staff • Presented to Planning Board on May 26th & June 9th • SEPA process completed on June 17th Mr. Lindberg reviewed accomplishments since 2002: • CIP Projects • Approximately 75% of 2002 Water Main Replacement Program is either completed or designed. This includes replacement of 30,900 linear feet of old water main and design for replacement of an additional 9,500 linear feet is 90% complete and approaching construction • Completed 6 water system facility improvement projects • Water Conservation • Approximately 1% per year reduction in consumption He reviewed current water sustainability elements: • Ongoing leak detection program • Ongoing water main replacement program • Bills showing consumption history • Evaluation of reclaimed water opportunities Edmonds City Council Approved Minutes June 22, 2010 Page 7 • Involvement as member of Everett Water Utility Committee • Indoor and outdoor conservation kits • Audits of school irrigation systems and commercial users • Public outreach and school -based education programs • Rebates for water efficient toilets and clothes washers Water Use Efficiency and Sustainability Accomplishments since the last Plan was completed include: • Reduction in overall supply declined from 3.65 million gallons /day (MGD) in 2003 to 3.07 MGD in 2008 Per capita water usage declined from 111 gallons /day (1995 -2000 average) to 104 gallons /day (2003 -2008 average) • Current goal to reduce annual per capita water usage by one percent Water system leakage complies with Dept. of Health regulations • Less than 10% leakage based on 3 -yr rolling average He provided distribution system leakage trends for 2001 to 2010 . that illustrate decreasing leakage. He noted the Department of Health required water systems maintain a leakage rate of less than 10% based on a 3 year rolling average. He also provided per capita water usage trends that illustrate a decreasing usage trend. He explained their existing system evaluation evaluated the Alderwood Supply Station, the Five Corners Pump Station, the reservoirs at Five Corners, Seaview and Yost, and the distribution system (water mains). Their evaluation determined: • Supply capacity is sufficient with improvements underway • Storage capacity is sufficient • Pump station capacity is sufficient • Water mains are aging and some are leaking • Many water mains are undersized to provide sufficient fire flow System status and key findings of their evaluation include: • City provides water service to more than 10,050 accounts • Future water supply from Alderwood Water District with Seattle as backup supply • Overall supply will increase between approximately 12% and 21% at end of 20 -year planning period • Old undersized water mains are reaching end of useful service life and need to be replaced He described existing system conditions, displaying 2002 photographs illustration corrosion and build -up in a 1928 8 -inch cast iron water main (3rd & Bell Street) and a 1928 12 -inch cast iron water main (5th & Walnut Street). He also displayed a 2009 photograph of a water main break in a 1929 8 -inch cast iron water main (626 Maple Street). Water system needs include: • 2010 -2016 CIP totals $20.1 million, averaging $2.87 million per year • Water main replacements account for 87% of 20 -year CIP • Approximately 1 % of all water mains replaced each year per the CIP schedule • Rate adjustments are needed for ongoing operations and funding of CIP projects • Additional staff for GIS support at 1/3 FTE for Water Utility He explained the objectives of the financial evaluation were to • Identify total cost of providing water service, operations and maintenance costs as well as capital improvement costs Edmonds City Council Approved Minutes June 22, 2010 Page 8 • Identify financial program for the next 6 years Major tasks in the financial evaluation included: • Reviewing existing financial condition of water utility • Summarizing financial policies • Identifying capital funding resources • Developing a capital funding plan with projected rate adjustments • Developing a financial forecast • Reviewing affordability of rates The result of their financial evaluation determined annual rate increases of 8.5% over the next 3 years are necessary to fund the operations and maintenance program and planned capital improvements. Key factors for the rate increase include: • Ongoing need to replace aging and leaky water mains; mostly with larger water mains to meet current fire flow requirements • Alderwood Water District's anticipated wholesale rate increases • Water revenues have been decreasing per capita from gradual water usage reductions due to successful conservation activities • Lack of low interest loan and grant programs from the State for funding water system improvements Mr. Lindberg provided a comparison of other cities and utility districts' single family monthly water rates that range from a high of Seattle's summer rate of $45.33 to Lynnwood's rate of $14.97. Edmonds current rate is $22.05 /month; the proposed rate if $23.96 /month. Next steps include: • Public Hearing — July 6, 2010 • Submit plan to Department of Health and adjacent water purveyors — July 2010 • Department of Health review completed — approximately October 2010 • Adoption by City Council — approximately November 2010 Mr. Lindberg addressed questions raised at the Planning Board: L Why are some fire flows shown in water system plan so low? • The purpose of the evaluation is to determine if water mains are sized and looped properly to meet pressure and fire flow requirements • Criteria used is most stringent to ensure requirements are met during all reasonable conditions • Approach taken evaluated all pipe intersection locations • Fire flow at one location for worst -case shown in plan • Nearby locations at same area have higher fire flows • Fire flows increased for all areas with planned improvements 2. Why aren't all individual water main projects scheduled for a specific year? • Annual Water Main Replacement Program funded each year • Water main improvements prioritized based on established criteria (pipe year, material, leaks/breaks, fire flow) • Staff selects projects in future years using priority ranking • Approach provides flexibility to adapt to unknown future conditions • Coordinate water main projects with street projects • New areas of leaks or breaks may change priorities • Timing of easements required for water main projects may affect scheduling Edmonds City Council Approved Minutes June 22, 2010 Page 9 Councilmember Buckshnis referred to the fire flow analysis in Table 7.6, noting fire flow to Stevens Hospital and some schools are seriously deficient. She questioned why replacement of the water mains serving schools and Stevens Hospital were not prioritized higher. Mr. Lindberg answered priority ranking was done based on established criteria that includes fire flow as well as pipe age and material. The City has the ability to increase the priority of those projects. Councilmember Buckshnis asked whether some projects in the previous Water System Comprehensive Plan had not been completed. Mr. Lindberg answered approximately 25% of the projects, primarily water main projects, were not completed and are included in the updated Plan. Councilmember Buckshnis inquired about the priority of the BNSF crossing water main. Mr. Lindberg advised that was one of two water main projects that are currently underway. Councilmember Buckshnis asked for a definition of "smoothing" which was mentioned in the financial information. Mr. Dogan responded smoothing is providing a more predictable rate increase rather than basing the rate increase on annual needs. This allows citizens as well as the City to more easily manage their finances. Councilmember Wilson asked staff to address the point made by Councilmember Buckshnis and Lora Petso regarding schools and /or Stevens Hospital not having enough fire flow. Mr. Miller explained after that concern was raised, he met with Fire Marshal John Westfall to review each situation including a review of the hydrants in the vicinity of the schools that the Fire Department would use and Mr. Lindberg conducted a hydrologic network analysis. They found the majority of other hydrants in the vicinity had adequate fire flow. This was the first time a hydrologic analysis had been done for every location in the pipe network; previously a sampling was done to determine fire flow. Fire Marshal Westfall determined there was sufficient fire flow in each area for fighting a fire. Councilmember Wilson clarified in areas where there was questionable sufficiency, there were myriad other hydrants in the area that could be used. Mr. Miller agreed, noting the Fire Department is aware which fire hydrants need to be upgraded. Councilmember Wilson referred to the projected 21% supply increase and asked whether there were any challenges in the distribution network associated with meeting that increase. Mr. Lindberg explained the supply increase was due to additional population. The primary impact would be on the Alderwood Supply Station; the improvements currently underway will provide capacity to meet higher flows projected over the next 20 years. The distribution system is impacted more by fire flows than drinking water demand. Councilmember Wilson asked whether the current distribution network could address fire flow demand from new development and redevelopment. Mr. Lindberg answered the improvements identified in the Plan over the next 20 years are based on increased demand as a result of growth. Many of the water main improvements are replacement of smaller pipe with larger pipe to meet fire flows, a common occurrence in public water systems. Councilmember Wilson asked in what type of jurisdictions would a differentiated rate structure such as commercial /residential, seasonal, utilization, etc. be appropriate. Mr. Lindberg answered this Plan considered an alternative rate scenario that supports conservation. Mr. Dogan explained some other jurisdictions have adopted an increasing block rate structure for single family residential customers such as to address summer peaks. A tiered rate structure attempts to trim peak usage as well as reduce water purchase costs. For other customer classes, he advised a detailed analysis would be required of each class' consumption pattern to determine an appropriate rate structure. This requires a great deal of customer data review, costal allocations, etc. He noted in some customer classes a seasonal rate structure may be appropriate, however, some classes do not have the ability to manage their usage. Edmonds City Council Approved Minutes June 22, 2010 Page 10 Councilmember Buckshnis asked what size cities are using a differential rate structure. Mr. Dogan answered size was not the issue, it was whether the jurisdiction wanted to manage usage and contain water purchase costs via price controls. Mr. Miller referred to the fire flow analysis, explaining that the worst case scenario was Stevens Hospital where there was 60 -90% available fire flow in the peak demand period. He anticipated consideration would be given to prioritizing that project. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO SCHEDULE A PUBLIC HEARING ON JULY 7. MOTION CARRIED UNANIMOUSLY. 6. OPPORTUNITY FOR PRESENTATION OF VISION STATEMENTS BY INDIVIDUAL COUNCILMEMBERS. Council President Bernheim explained he scheduled this on the agenda because it was one of the priorities identified by the Economic Development Commission (EDC). He acknowledged the EDC was working on a vision statement to assist the City Council and the City in identifying common goals in economic and social development. Council President Bernheim referred to his vision statement that was included in the packet, advising his first priority was reducing greenhouse gases. For this reason he has promoted car free days, converting parking spaces to pedestrian spaces, and placing an increased license fee on the ballot so that citizens who drive pay a slightly greater share of the infrastructure costs. The second priority in his vision statement is a low impact tourist development economy such as transit oriented development on Hwy. 99, connecting the downtown with the waterfront, promoting festival retail, and ecotourism such as the Edmonds Marsh and underwater scuba park. He referred to the article about Edmonds in Sunset Magazine. Council President Bernheim explained he also included in the packet the HyettPalma Study conducted in 1999 that looked to the future of Edmonds in 2007. He pointed out a number of the goals in that study had been achieved. He also included excerpts from the 1998 Butterfield study that promoted Edmonds as a pedestrian oriented area with a great deal of extended pedestrian space within the city. Councilmember Buckshnis commented a portion of her vision was truncated in the Edmonds Beacon article. She favored the promotion of ecotourism, taking advantage of the availability of rail transportation, cleaning up the Marsh, turning the City into a bird watching capital, and developing a booklet such as the one distributed by the European Union regarding turn down, switch off, recycle, walk. The booklet describes the effects of greenhouse gas emissions and making a reduction pledge. She noted zoning on Hwy. 99 could accommodate a building as tall as the Empire State Building. She suggested a Stevens Hospital tower that could house multiple offices, condominiums, restaurants, etc. With regard to the character of the community, Councilmember Wilson suggested to determine where to go, it was necessary to first understand who we are. He identified the following characteristics of Edmonds: • Frugal: We know a good investment when we see it • Family - centered: If it's good for families, it's probably good for Edmonds • Modest: Don't need to be the biggest and best, just efficient and above - average • Highly residential — Commercial property pays $1.17 in property taxes for every $1 in services received — Residential property pays $.82 in property taxes for every $1 in services received Assets that could be leveraged include: Edmonds City Council Approved Minutes June 22, 2010 Page 11 • Waterfront • Historic downtown • Fiber -optic cable: Our most underutilized asset • Hospital and health care providers: A central component of economic development and services in the future and allows citizens to age in place. • Institutions (schools, churches, social organizations): These draw people to Edmonds, engage them in our civics, and build social capital. Liabilities to mitigate include: • Hard to get here: You don't just end up in Edmonds, you have to want to come here • Severe shortage of quality retail stock — Old stock is not often well maintained — New stock is dark, subterranean and often occupied by service businesses High leakage of commercial dollars — The majority of our dollars are spent outside of our community — Also hampered by `half a market' due to the water What this means for the future: Connect our downtown to our waterfront — Ferry holding lanes are a firewall — Takes a chain of successful retail spaces, which means targeted redevelopment Neighborhoods — Invest in sidewalks, traffic mitigation — Foster the creation of "spaces" that generate an increased sense of community Expand the reach of the fiber -optic cable — Syringe versus 40 -foot water main — Tech jobs are green jobs • Short commute • More foot traffic for downtown — Think upload capacity, rather than download — Build this into our redevelopment codes such as requiring the installation of fiber optics whenever a street is torn up or redevelopment occurs within a 3 block radius of the fiber optic cable • Focus on health care — Allows citizens to stay in their homes as they age — Support the investments others are willing to make here — Largest employer today in Edmonds — we should make sure that is the case in years to come Councilmember Fraley- Monillas explained she had not prepared a vision to share. She referred to the information Council President Bernheim included in the packet, noting the HyettPalma study envisions Edmonds would have a variety of stores with a variety of prices, a variety of restaurants with a variety of prices; cultural activities; a renovated auditorium with lighting, seating, etc. that the symphony and ballet need; meeting facilities; a Fine Arts Center of Edmonds - a place for artists to create, display and sell their work, destinations that attract "young professionals from Seattle ", attractions that involve young people and lodging facilities. She noted the City had achieved many of those goals. Councilmember Peterson referred to Gertrude Stein who said, "It is awfully important to know what is and what is not your business." As a business owner, he could wax poetically about his vision for Edmonds. As a City Councilmember he is responsible to 40,000 diverse citizens in unique neighborhoods with different needs. He viewed the Council's responsibility as grounding the vision in the truth which includes consideration of governmental limitations and economic realities; ensuring the vision is Edmonds City Council Approved Minutes June 22, 2010 Page 12 attainable and contains solid goals for which a process can be created. He commented although the previously presented Transportation Plan, Storm and Surface Water Plan and the Water System Comprehensive Plan may not be the most exciting portions of the City's vision, they were its foundation. Councilmember Peterson provided his overriding principles: • The environment — a key principle in creating a vision, an asset and needs to be protected for the future • Economic development — particularly that supports small, green businesses • The arts — The Edmonds Center for the Arts is one of the premiere centers in Puget Sound • Public health • Public Safety Councilmember Peterson commented although he looked forward to working with the community on a vision, he felt the Council's job was to insert reality into the process. Things can be achieved that no one thought possible; he cited fiber optics, The ECA and environmental initiatives as examples. 7. COUNCIL REPORTS ON OUTSIDE COMMITTEE /BOARD MEETINGS Councilmember Buckshnis reported Snohomish County Tomorrow is working on the Countywide Planning Policies. She reported the Port of Edmonds has completed Harbor Square Development Phase 1 and will now create schematics that address heights and design issues. Councilmember Buckshnis reported on the SeaShore Transportation. Forum, commenting although she was a non - voting member, she found the meetings very informative with regard to what King County provides cities. Councilmember Wilson reported the focus of the recent Puget Sound Regional Council meeting was on the Transportation 2040 document and ways to continue to constrain growth and provide transportation infrastructure. Councilmember Wilson reported the Lake Ballinger Forum is reaching the end of the term of the current Interlocal Agreement on June 30 and another Interlocal Agreement extending the Forum will be presented to the Council in the near future. Lynnwood is dropping out of the Forum. There may be future discussion regarding litigation strategies with regard to Lynnwood. Councilmember Fraley- Monillas reported she replaced Councilmember Orvis on the Snohomish Health District Board. She was recently provided a tour of the program by the Director and was surprised to learn how much the District does to keep citizens healthy. She looked forward to future meetings. Councilmember Peterson reported the Hwy. 99 Taskforce discussed the CG3 zone, a transition zone between the high density /commercial uses on Hwy. 99 and the surrounding residential areas. The CG3 zone will be presented to the Planning Board in the next few months and is a great opportunity for transit oriented development. Councilmember Peterson reported the Public Facilities District Board discussed Snohomish County's allocation of Lodging Tax funds. Members of the Board, staff and he met with Snohomish County Councilmember Cooper and plan to meet tomorrow with Councilmember Sullivan to plead the PFD's case for the funds and to determine the process and the timeline for allocating those funds. The funds are needed to repay capital expenditures for the Edmonds Center for the Arts (ECA). He stressed the operating budget for ECA, despite the economy, was remarkably in the black. He recognized the PFD and ECA board members, staff and volunteers. Edmonds City Council Approved Minutes June 22, 2010 Page 13 Mayor Haakenson urged the Council to be vigilant and diligent with all Snohomish County Councilmembers in regard to an equitable allocation of the Lodging Tax funds as the Future of Flight will also be seeking an allocation. 9. COUNCIL COMMENTS Recognizing this was Mayor Haakenson's last meeting, Council President Bembeim commented although he and Mayor Haakenson have had their disagreements in the years they have been involved with in City politics, he had great respect for the Mayor's many years of service to Edmonds and for his hard work. He expressed his gratitude for Mayor Haakenson's years of service as Mayor and Councilmember. Councilmember Buckshnis thanked the volunteers who assisted with the Edmonds Arts Festival last weekend. She thanked the ten citizens who applied for the levy committee, commenting the applicants include CPAs, controllers, financial managers, and an auditor. She thanked Mayor Haakenson for attending 700+ Council meetings. Councilmember Wilson echoed the previous comments regarding Mayor Haakenson's service and thanked him for his mentorship. He encouraged Mayor Haakenson to continue his advocacy for Edmonds in his position as Deputy County Executive. Councilmember Peterson commented when he first opened a business in Edmonds approximately nine years ago, one of the first people through the door was Mayor Haakenson. Since then Mayor Haakenson has done another ribbon cutting for him as well as helped lead the City through some difficult times. He thanked Mayor Haakenson for his leadership during Council meetings as well as in the community. As Ms. Chase noted, Mayor Haakenson took the time to listen to people who visited his office, stopped him on the street or called him. Mayor Haakenson reflects and helped create what people like about Edmonds. He recognized the respect Mayor Haakenson garnered from neighboring communities, other elected officials and citizens. He thanked Mayor Haakenson for his leadership and friendship and wished him all the best in the future. Councilmember Fraley- Monillas commented it was great there were 10 applicants for the levy committee and 17 applicants for the City Council vacancy. Councilmember Fraley- Monillas commented although Mayor Haakenson and she do not always agree, they agree to disagree and move forward, an ability she appreciated. She recognized his phenomenal caring for the citizens and his sense of humor that help put people at ease. Her fondest memory of Mayor Haakenson was the pictures of him in a suit and tie chasing a bear. 8. MAYOR'S COMMENTS Mayor Haakenson thanked the many Edmonds City Councilmembers he has worked with over the past 15 years for their service and commitment to the City, commenting it took a great deal of work, patience and thick skin to serve in a public capacity and it could be a thankless job. He offered a huge thanks to the volunteers who serve the City on boards and committees, noting without their participation the City could accomplish few of the things that make Edmonds the special place it is. He offered his thanks to all the City employees who are dedicated to their jobs and the citizens of Edmonds; their competent job performance made his job much easier. He particularly thanked the directors for their unwavering support and tireless efforts at operating the City. He thanked the residents of Edmonds for their support and words of encouragement throughout the years, often when he needed them the most. The phone calls, emails, text messages, cards and letters over the last couple of weeks have humbled him and he thanked the senders from the bottom of his heart. Edmonds City Council Approved Minutes June 22, 2010 Page 14 To his Senior Executive Assistant Linda Carl, Mayor Haakenson commented he could not have done it without her. She is indispensible and he could not have asked for anyone better to work with. Finally, he thanked his family, especially his wife Dolly, who more than anyone, bore the brunt of his being an elected official. She endured the night meetings, the weekend events, the long hours, the calls in the middle of the night, the letters to the editor, the public comments. She, better than anyone, knows what it's like to be Mayor. He summarized he could not have done it without her endless support. Mayor Haakenson noted all in all it had been a great ride; a ride that few people got to take, a ride that he would never forget and one from which he had no regrets. He thanked everyone, noting it had been an honor to serve. 10. ADJOURN With no further business, the Council meeting was adjourned at 9:20 p.m. Edmonds City Council Approved Minutes June 22, 2010 Page 15