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2023-11-06 Special MeetingEDMONDS CITY COUNCIL SPECIAL MEETING APPROVED MINUTES November 6, 2023 ELECTED OFFICIALS PRESENT Neil Tibbott, Mayor Pro Tern Vivian Olson, Council President Pro Tern Will Chen, Councilmember Diane Buckshnis, Councilmember Susan Paine, Councilmember Dave Teitzel, Councilmember Jenna Nand, Councilmember ELECTED OFFICIALS ABSENT Mike Nelson, Mayor 1. CALL TO ORDER/FLAG SALUTE STAFF PRESENT Angie Feser, Parks, Rec., & Human Serv. Dir. Susan McLaughlin, Planning & Dev. Dir. Todd Tatum, Comm., Culture & Econ. Dev. Dir. Rob English, City Engineer Shannon Burley, Deputy Parks, Rec. & Human Serv. Dir. Mike De Lilla, Senior Utilities Engineer Jeff Taraday, City Attorney Scott Passey, City Clerk Jerrie Bevington, Camera Operator The Edmonds City Council special meeting was called to order at 6:02 p.m. by Mayor Pro Tern Tibbott in the Council Chambers, 250 5t' Avenue North, Edmonds, and virtually. The meeting was opened with the flag salute. 2. LAND ACKNOWLEDGEMENT Councilmember Teitzel read the City Council Land Acknowledge Statement: "We acknowledge the original inhabitants of this place, the Sdohobsh (Snohomish) people and their successors the Tulalip Tribes, who since time immemorial have hunted, fished, gathered, and taken care of these lands. We respect their sovereignty, their right to self-determination, and we honor their sacred spiritual connection with the land and water." 3. ROLL CALL City Clerk Scott Passey called the roll. All elected officials were present with the exception of Mayor Nelson. 4. APPROVAL OF AGENDA COUNCIL PRESIDENT PRO TEM OLSON MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. 5. COUNCIL BUSINESS Edmonds City Council Approved Minutes November 6, 2023 Page 1 PROPOSED 2024-2029 CAPITAL FACILITIES PLAN & CAPITAL IMPROVEMENT PROGRAM Mayor Pro Tem Tibbott advised staff is present to answer questions. It was his understanding there may be some amendments to the CIP/CFP. Councilmember Teitzel said he had several amendments to propose to the CIP/CFP. The first is related to PWT-32, 84th Ave Walkway from 238th SW to 2341 SW. The estimated project cost is $1.5 million and the CIP/CFP shows it commencing in 2027. In speaking with residents in that area, this is a critical area for a sidewalk and he wanted to move that project to begin design in 2024 and start construction in 2025. This also relates to PWT-69, 7' Ave Sidewalk project, because funding for that project totaling $750,000, would be transferred to fund design and part of the construction of PWT-32. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO MOVE PWT-32 IN THE SCHEDULE FROM 2027 TO START DESIGN IN 2024. Councilmember Paine raised a point of order, asking whether there first needed to be a motion to approve the CIP/CFP. City Clerk Scott Passey answered in the past the council has made amendment to the CIP/CFP and then approved the plan as amended at a future meeting. It is cleaner to make a motion to approve the CIP/CFP and then make amendments, but if the council is not ready to pass the plan tonight, making amendments first can also be done. Mayor Pro Tem Tibbott said he was prepared tonight to entertain amendments to the CIP/CFP; if the council had done it that way in the past, he suggested continuing that pattern and approving the complete plan at a future meeting.. Councilmember Teitzel explained he and several councilmembers were at the site several months ago and heard from nearby residents about the pressing need for a sidewalk. While there, councilmembers witnessed a resident in a motorized wheelchair using the travel lane which is extremely unsafe and certainly not supportive of ADA requirements. He summarized it was appropriate to move this project up in the schedule. Councilmember Buckshnis said this was also on her list of amendments. There was a building proposed in that area and the City was waiting for the developer to pay for the sidewalk, but the developer allowed the project to lapse. She agreed it was timely to move this project up in the schedule. MOTION CARRIED UNANIMOUSLY. Councilmember Teitzel referred to PWT-39, Citywide Bicycle Lane, which has an estimated project cost of $3 million. There is no discussion in the CIP/CFP about this project being grant funded by Sound Transit and the CIP/CFP shows $15,000 in construction costs in 2024 funded by REET revenue. He suggested revising the plan to show $15,000 covered by the Sound Transit grant with no impact to REET. If that is not appropriate, he wanted to understand why REET was needed to cover this amount. Parks, Recreation and Human Services Director Angie Feser relayed staff's request to have an opportunity to comment on proposed amendments to the CIP/CFP related to impacts on project planning, staff time and resources, funding sources, etc. She suggested staff have an opportunity to comment on the previous amendment. Councilmember Teitzel raised a point of order, asking if it was appropriate to discuss that once council passed the amendment. Mayor Pro Tem Tibbott responded probably not, but he was interested in the impact and possibly being able to mitigate that in another way. Edmonds City Council Approved Minutes November 6, 2023 Page 2 City Engineer Rob English asked if the proposal was to take funding from the 7' Ave Sidewalk project. Councilmember Teitzel said his proposal was to use funding from PWT-69. Mr. English explained earlier this year the council approved a Job Order Contract (JOC) for a lesser amount than $750,000 so the $750,000 isn't available for the 7t' Ave Sidewalk. Council action was a lesser amount, $200,000 in bond proceeds, because the sidewalk is adjacent to City property, plus $100,000 in stormwater funds for a total allocation of $300,000. When the JOC was approved by council, $750,000 was pulled from the 7t' Ave Sidewalk because the funding was already secured. He recalled Public Works Director Oscar Antillon provided that information to council last week. He clarified the $200,000 could not be used on the 84t1' Ave Walkway because they are bond proceeds and there is no City property adjacent to the site. Councilmember Teitzel clarified, the total funding is $300,000 of which $200,000 is bond funds. He asked why Mr. English was suggesting it was not appropriate to use the $200,000 in bond funds for the 84t1i Ave Sidewalk project. Mr. English explained because those are bond proceeds and it was his understanding the project has to be related to a City facility which is why it worked for 7t1i Ave Sidewalk but would not work for the 84t1i Ave Sidewalk. Councilmember Teitzel asked if there was a legal requirement that precluded use of the funds. City Attorney Jeff Taraday said if the question was whether bond money could be used for this purpose, he would defer to the City's bond counsel to answer that. Councilmember Teitzel relayed his understanding that that question could not be answered this evening. Mr. Taraday said he was not able to provide an answer. Mayor Pro Tern Tibbott said the council wants to move that project forward but has not identified a funding source. He requested staff look into funding sources prior to the council passing the CIP/CFP and the budget. Councilmember Teitzel recalled his motion specifically asked for $750,000 and apparently that is not available, and asked how his motion could be revised to state funding to be determined. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCIL PRESIDENT PRO TEM OLSON, TO RECONSIDER THAT VOTE SO WE CAN REVOTE IN A DIFFERENT MANNER. MOTION CARRIED UNANIMOUSLY. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCIL PRESIDENT PRO TEM OLSON, TO MOVE PWT-32 FORWARD TO THE 2024-2025 TIMEFRAME WITH FUNDING TO BE DETERMINED. Councilmember Paine observed there is currently $88,000 in 2024 and the balance in 2027. In correspondence from staff, the estimated cost would be $1,350,000 in 2027. One of the questions asked by council was whether design would help with identifying additional funding opportunities and the answer was completing design and environmental review, Parks submitting for grant application can increase the score for grant applications. She asked if the motion was to move $1,350,000 to a date sooner than 2027. Councilmember Teitzel answered the motion would be to move design to 2024 with construction in 2025 with the funding source to be determined. Mr. English assumed a funding source would need to be identified before 2024, possibly via the decision package process. Staff negotiated a scope and fee when there were ARPA funds allocated this year for the project to start the preliminary design phase; the consultant's scope of work was approximately $65,000 plus staff time for a total of approximately $75,000. That could be included in the 2024 budget; the design will likely be complete in the first three months of the year and staff could then provide the council with an accurate estimated project cost and the council could decide at that point whether to move forward in 2025. Although it would hurt the pavement preservation fund, a possible funding source would be from the $1.5 million in REET allocated for the pavement preservation project in 2024. Edmonds City Council Approved Minutes November 6, 2023 Page 3 Councilmember Teitzel restated the motion: TO MOVE THE DESIGN PHASE OF THE PROJECT INTO 2024 AND FUND WITH REET AND MOVE THE CONSTRUCTION PHASE INTO 2025 WITH FUNDING TO BE DETERMINED/STREET FUNDS. Council President Pro Tem Olson recalled this was a priority the council added to the 2023 budget. Even though the council will not be in the mode of someway/somehow making something happen on many things this year, this is one of those things she was willing to be in that mode for and figure out a way to get it done. Councilmember Paine asked the percentage of the street restoration fund that would be impacted by that change. Mr. English answered there is $1.5 million in REET funds for the overlay program. There is also a $750,000 federal grant to overlay Main Street plus local matching funds for Main Street so approximately $2.3 million. The proposal would be to reduce that by $75,000 for preliminary design. Councilmember Paine observed it would only fund design; funds for construction would need to be determined. Mr. English clarified it is preliminary design which is 30%. Staff will report the cost estimate determined during preliminary design to council during the first quarter of 2024 and council can make a decision regarding how to proceed. MOTION CARRIED UNANIMOUSLY. Councilmember Teitzel referred to PWT-39, Citywide Bicycle Lane, which has an estimated project cost of $3 million. There is no discussion in the CIP/CFP about this project being funded by a Sound Transit grant. The CIP/CFP shows $15,000 in construction costs in 2024 to be funded by REET revenue. He suggested revising the plan to explain the entire $3 million and why the residual $15,000 is covered by City funds. Mr. English explained when bid results were received in June, the project came in higher than expected so additional BEET funds were added to the project. When the CIP/CFP was developed in July, expenditures would have expended the full Sound Transit grant so the balance to close out the project in 2024 was with REET funds as grant dollars are spent first. The benefit section refers to the Sound Transit grant and that could be expanded. Councilmember Teitzel suggested that would be helpful. Councilmember Teitzel referred to PWT-44, Downtown Lighting Improvements, with $1.6 million in unsecured funding to install additional streetlighting in downtown Edmonds in 2027-2028. The narrative for this project does not provide sufficient justification for that additional lighting, particularly when there are urgent lighting needs elsewhere in the City such as the Mathay Ballinger Park area, Interurban Trail, etc. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO REMOVE THIS PROJECT AND INSTEAD DEVOTE THE $1.6 MILLION IN FUNDING TO URGENT LIGHTING IMPROVEMENTS ELSEWHERE IN EDMONDS. Councilmember Teitzel said the council has heard there has been uptick in crime and other activities along the Interurban Trail where it is very dark and residents are uncomfortable walking on the trail in dusk and evening hours. That route needs to be safe and inviting, especially since it will be the primary route to reach the new gate for the Mountlake Terrace Ballinger Park for which the City has an ILA with Mountlake Terrace. For now there is sufficient lighting downtown. Council President Pro Tern Olson agreed lighting in other areas was a higher priority. However, she also knew Dayton Street for example was pretty dark for a downtown area. She preferred to move this project out to the 2030 range so that it is not forgotten. She asked staff for their insight/input. Mr. English answered the last three years of the CIP/CFP is the unconstrained list, projects that most likely do not have any funding. To suggest moving the $1.6 million to another project, there is no funding to move. Edmonds City Council Approved Minutes November 6, 2023 Page 4 Unfunded projects are in the last three years of the CIP/CFP to provide opportunity to seek grant funds. There is also a streetlighting study being done by the end of the year that will provide a prioritized list of where lighting is needed within the City. This could potentially wait until that process as well as the Transportation Plan update is complete. He reiterated there is no funding to move. Council President Pro Tem Olson asked if the streetlighting study will look at all areas of the City. Mr. English agreed it would. Council President Pro Tem Olson observed the Downtown Lighting Improvements would not get lost; if lighting it needed, it would be identified in the streetlighting study. Mr. English agreed. Councilmember Nand asked if the beautification project with sign posts could be combined with streetlighting and potentially funded via the Goffette bequest. Ms. Feser answered lighting would not be included in beautification and the Goffette donation does not include lighting as a use for those funds. Lighting is not necessarily defined as beautification, it is more of a safety amenity. Councilmember Nand inquired about a combined pole for utility and flower baskets. Ms. Feser asked if she was suggesting lighting and flower baskets on the Interurban Trail or downtown. Councilmember Nand clarified she wondered if those two uses, utilities and flower baskets, could be combined on one pole. Ms. Feser answered a light pole is very different than a flower basket pole. It is always a possibility, but she was uncertain that beautification money would be the best way to install utilities. Councilmember Nand relayed there is a lot of concern about nighttime light pollution due to streetlights and there been complaints from some community members who are impacted by aggressive lighting onto their private property. Other jurisdictions have taken steps to preserve the night sky and reduce nighttime light pollution with more foot -level lighting. She asked if that could be explored and whether that could potentially be a cost savings. Mr. English answered it could be explored. He agreed there have been issues when streetlights are added as a result of a request and neighboring property owners don't like the light reflecting onto their property. There are ways to control that via back panels on lights but there is still light emission. Lighting at a lower level could be considered on a case -by -case basis, but it would be difficult to implement entire segments of lower level lighting citywide due to the cost. Councilmember Paine spoke against the motion, preferring to retain PWT-44 in the CIP/CFP. The streetlighting study will inform citywide lighting needs in the CIP/CFP. MOTION CARRIED (6-1), COUNCILMEMBER PAINE VOTING NO. Councilmember Teitzel referred to PWT-45, SR-104 Infill Walkway on Pine Street to 9', with a cost estimate of $3.3 million and design in 2027. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO MOVE THIS PROJECT TO 2029 AND ALLOW OTHER PROJECTS WITH HIGHER PRIORITY TO AVAIL THEMSELVES OF THIS FUNDING SOURCE. Councilmember Teitzel pointed out there are sidewalks in some areas on Pine Street between 9t' and SR- 104; this project will complete the missing sections. There are other areas of the City with no sidewalks such as 84'1i. He preferred to move this project back and ensure the highest priority sidewalks are built first. Council President Pro Tem Olson asked for staff input. Mr. English answered the project is unfunded so there is no funding to move. Councilmember Buckshnis pointed out the out years of the CIP/CFP are just numbers and she hoped the council would not spend a lot of time belaboring these because the numbers are just guestimates. Mayor Pro Tem Tibbott suggested focusing on projects related to 2024. Edmonds City Council Approved Minutes November 6, 2023 Page 5 MOTION CARRIED UNANIMOUSLY. Councilmember Teitzel said his next proposed amendment was related to PWT-69, 7' Ave Sidewalk project, which was already addressed by the motion related to PWT-32, moving funding from the Th Ave Sidewalk project to the 84t' Ave Sidewalk so the amendment is no longer necessary. Councilmember Teitzel referred to PWT-51, Ferry Storage Improvements from Pine St to Dayton St, with a cost estimate of $380,000 in unsecured funds to add vehicle storage for ferry users. This project involves restriping a section of SR-104 which is a state highway and he was not convinced this was a City obligation and should be a WSDOT obligation. Mr. English answered the project is shown in 2027 and the funding is unsecured so there are no funds to move. The project would reconfigure the ferry storage lanes and help reduce impacts on busy weekends when traffic backs up the hill close to the Westgate intersection. Councilmember Teitzel asked if that should be a state obligation and entirely removed from the City's CIP/CFP. Mr. English explained the reason it was proposed in the City's CIP/CFP and not the state's CIP/CFP was because it would benefit Edmonds businesses on SR-104. Councilmember Nand asked if this would be a similar configuration to the Kingston terminal where people park and go spent money at businesses in downtown Kingston. Mr. English recalled the layout would reconfigure one of the general purpose lanes to add additional storage. He would need to get more details from the proposed plan. Councilmember Nand said she looked forward to the clarification. If it would allow people to safely leave their cars while waiting for a ferry and spend money at Edmonds businesses, it would be a City benefit. Council President Pro Tern Olson preferred to keep this project in the CIP/CFP because it doesn't say it will be City funded, just that it is a project that the City wants to see happen. As it get closer in the plan, hopefully funding sources can be identified. COUNCILMEMBER TEITZEL MOVED TO DELETE PWT-51 FROM THE CIP/CFP. MOTION FAILED FOR LACK OF A SECOND. Councilmember Teitzel referred to PWT-64, Green Streets 236' SW, which has design and some construction in 2025 and completion in 2026 with a total cost of approximately $3.5 million over 2 years. He opined the cost is too much at this point, especially in view of the City's current financial status. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO MOVE THIS PROJECT TO COMMENCE IN 2029 UNTIL IT CAN BE ASSESSED FURTHER. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO AMEND TO COMPLETELY REMOVE PWT-64, GREEN STREETS 236TH SW, FROM THE CIP/CFP. Councilmember Buckshnis advised the council has been asking for code since 2021, and even provided Seattle's code. Instead, an expensive consultant was used to provide a manual; the code cannot be enforced via a manual. She preferred to remove this project completely and when the administration develops code, they can suggest another Green Streets project. This is the wrong location; citizens have said they do not want a Green Street, they just want sidewalks. Councilmember Paine suggested moving it out another couple years so it can be considered as an option for that neighborhood. Edmonds City Council Approved Minutes November 6, 2023 Page 6 Councilmember Chen commented the Green Street concept is good, but with a cost of $3.5 million and considering the City's current financial situation, moving it out is appropriate. He will vote against the amendment. MOTION FAILED (2-5), COUNCILMEMBERS BUCKSHNIS AND TEITZEL VOTING YES. COUNCILMEMBER PAINE MOVED TO AMEND TO MOVE THE PROJECT OUT TO 2028. MOTION DIED FOR LACK OF A SECOND. MAIN MOTION CARRIED UNANIMOUSLY. Councilmember Teitzel referred to PWF-10, Historical Museum, with an estimated cost of $75,000 from 2024 to 2028 for upgrades and maintenance of the museum building. The museum has one restroom on the main floor for the entire building and it is not fully ADA compliant. His request is dedicate $20,000 of those funds to bringing the single restroom in the museum up to ADA compliance. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO DEDICATE $20,000 OF THOSE FUNDS TO BRINGING THE SINGLE RESTROOM IN THE MUSEUM UP TO ADA COMPLIANCE. Council President Pro Tern Olson said while she had a lot of interest in moving ADA projects forward, she did not think this project ranked as one of the higher priorities because this building is immediately across the street from public restrooms which are ADA accessible. With the very long list of ADA projects, this is not a good way to spend $20,000. Councilmember Paine suggested those funds may not even be available because they are bond -related funds and their use is still up in the air. Councilmember Teitzel relayed his concern was if someone in an electric wheelchair in the museum building needed to use the restroom, it was not appropriate or respectful to museum visitors to ask them to go out the door, down to the crosswalk at 5t1i & Main, cross the street, and travel a '/2 block to the public restroom. He spoke in favor of allocating a portion of the funds already set aside for upgrades and maintenance of the museum building to make the restroom ADA compliant. Council President Pro Tem Olson added another reason she reached her conclusion was the museum doesn't host longer, more enduring events and people tend to be in and out in about an hour. Councilmember Buckshnis expressed support for the amendment for the reasons Councilmember Teitzel stated. She wanted the City to begin spending the bond funds and this is a good project. MOTION CARRIED (5-2), MAYOR PRO TEM TIBBOTT AND COUNCIL PRESIDENT PRO TEM OLSON VOTING NO. Councilmember Teitzel referred to R-19, Shell Creek Restoration, relaying the narrative suggests ARPA funding is not available in 2024 for this project because it is being allocated for other purposes. However, the council has not decided how ARPA funds will be allocated in 2024 and it is highly possible there will be funding available. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO REVISE R-19 TO SHOW $120,000 DOES REMAIN TO STUDY THE ISSUES IN SHELL CREEK IN 2024 TO BE FUNDED BY ARPA. Edmonds City Council Approved Minutes November 6, 2023 Page 7 Councilmember Teitzel commented on the need to begin work in Shell Creek due to silting, issues with erosion and a number of other things that need to be addressed. This work needs to start in 2024 at least complete the study phase so actual work can begin including removing the concrete weirs and other things causing problems in the creek. Councilmember Buckshnis said she had the same issue. She asked whether DP 82 for $154,300 was part of the CIP/CFP, noting there is $120,000 as a carryforward and DP #82 for $154,300 but it also deals with pedestrian systems, boardwalks, bridges, trails and things of that nature. Ms. Feser displayed the relevant CIP/CFP projects (below), advising the first 4 projects are in 2024 so they are decision packages in the budget. The first item, DP 85 for $200,000 is already committed to Mountlake Terrace for Lake Ballinger Park, and the second item, DP 86, is the carryforward for Mathay Ballinger Park improvements so those numbers are committed and cannot be reused in any way. The third item is the Shell Creek Restoration which was originally listed as a carryforward using ARPA funding. Earlier this year, after the CIP/CFP was prepared, staff was told to pause ARPA funded projects so a decision package was not provided for the $120,000 Shell Creek Restoration. The fourth project, DP 82, includes a number of projects with funding of $154,300 of which $80,000 was originally for trails and bridges and $74,300 for tennis court resurfacing. Cokb Inflated at 3%per Par G► Pro]W SDei D-1ptlan 202e 2025 2026 2027 2028 2029 6. —Tent W W lake BallMgw Park Meundw ake Trate llAG 'RR7PDRW6RD' d D19 funtllry to support City of Mountkke Tewaca Ballintar Perk Ph•s•III $ I00.000 S - 5 - $ - 5 S $ ZItO.ltlin (] Devebpmenl. Payment due upon rompktbn of project. DS e•IRnprP•rk'GRRyfORWNRD' 00 d Dfi CMathay ons? ". of knprpvements lnclutli n8 permanent redroom, paved Hall, pkmc $ 2]1.300 $ - $ $ $ $ $ 2]1.3IX1 p DT sn.R.r,kDk:f.ak•m WMramennim. Shen Creek ReaeMadO,'GRRYEDRWkRD' 019 Stream huakhaW eroslonrontrol o1-11 Creekln Yost Park. scope TOD based -5--.a. 5 MOM0 5 - $ - 5 - 5 5 SOO- -Wdy. Stu* in 2024, —k In 2025. ARPA N R9 2 Re Rfi 11-:�.,k=t00 Park has, reyair and malntenareeto lrclWeresurla<eWtennk roans $ 1.29fi.N0o $ 5 - 5 - 5 $ l.aSo.]IXI S 15a. O11 rWgea ware repl entin20Za, ncluslve plrygrouM and popl upRradesln 2025. [alumkadum EapaMlon - gsau II DO Eapansbn of the<urrent rolumbarium. ruMing provided lh.,I, Ilse Cemetery $ 5 159.30 $ 5 - 5 - $ $ 159.1IX1 Trull rand 13). Woedway Grltpus ktnatic Complea maw 1-dglning Cou t Resu acing $ 74, 00 R D20 in: Edmonds School Dktrkt,completeacommunpypah $ - $ and athktk rompka al former Wmdwry High Schod to include lightirR and lutwe ronstrvnbn of two addllbnal Ikl*. Staff recommendation: Use the $154,000 from Yost Park DP#82 add $96,000 (total $250,000) and proceed with the Existing Conditions Analysis work in 2024, construction in 2025. Ms. Feser continued, Public Works has graciously offered to share a project at the reservoir, where the tennis courts are, in 2025. Therefore the $74,300 is available next year towards Yost Park. At this point $154,300 can be earmarked to replace the $120,000. Staff recommends using the $154,300 and adding $96,000 from REET for a total of $250,000 to move forward on the existing conditions analysis in 2024 and earmark $380,000 in 2025 for work in the park around Shell Creek. Councilmember Teitzel responded if funding can be identified from other sources and ARPA left out of the equation because it is up in the air at this point, he would be agreeable to staff s proposal for the funding source to proceed with the study and design work in 2024. Ms. Feser agreed the Park CIP could and any resulting decision packages be modified to show those changes. Councilmember Buckshnis said staff is saying $250,000 but she was only coming up with $200,000. She clarified $74,300 was not need for the courts. Ms. Feser clarified her recommendation was to use the funds earmarked for the courts, so $80,000 plus $74,300 is $154,300 that is already earmarked for 2024 and add another $96,000 for a total of $250,000 for the study. Councilmember Buckshnis asked if the $120,000 carryforward was reflected in the $250,000. She anticipated the decision package would need to be changed to reflect the $120,000 carryforward. Ms. Feser clarified there is no decision package for $120,000. Councilmember Buckshnis agreed, but in her calculations only $200,000 was needed, not $250,000. She was uncertain where the $96,000 was from because there is $80,000 plus the $120,000 carryforward which equals $200,000. Ms. Feser advised the Edmonds City Council Approved Minutes November 6, 2023 Page 8 $120,000 is currently unfunded; there is no decision package for the $120,000 carryforward which is why the chart above does not include a decision package number. Councilmember Buckshnis said if R19 is approved, $120,000 will be for Shell Creek. Ms. Feser reiterated there is no funding source for that project because ARPA was originally the funding source and she was told ARPA funds could not be used. Staff did not provide a decision package for the $120,000 carryforward for Shell Creek Restoration so it is currently unfunded. Councilmember Buckshnis observed if the decision package is changed to remove $74,300 and add $120,000, that totals $200,000. She questioned the $96,000. Ms. Feser answered the additional $96,000 would be funded with REET and would result in $250,000, staff s request for a complete existing conditions analysis. That was the original ask during the 2023 budget process and what is needed to study the length of Shell Creek within Yost Park. Staff s recommendation is $250,000 for that study and she is providing a way to fund it and asking council to consider it for 2024. Councilmember Buckshnis said she believed the $120,000 was specifically for the weir and Shell Creek section. Ms. Feser disagreed, stating the $120,000 was originally for the exiting condition's analysis. It was originally $220,000 for the study which council decreased to $120,000 in 2023. Through the course of the year, there was direction given by councilmembers to change that to a weir project which in her professional opinion was not originally approved by council in the budget process. Councilmember Buckshnis summarized the $120,000 is unfunded due to other uses for ARPA. Now staff is asking for $250,000 to do the complete analysis and not concentrate on any part of the degradation. Ms. Feser explained the existing conditions analysis is the first step in addressing degradation throughout the entire stream corridor within Yost Park which staff recommends be done in order to prioritize work related to Shell Creek such as the boardwalk, trails, bridges weirs, and concrete structures in the stream. She recommended that be done at once so overarching permits can be obtained, the work prioritized, and move forward with the work in 2025. Councilmember Buckshnis summarized the $120,000 is being removed from the CIP and asked if could a portion of the $250,000 could be included for Shell Creek Restoration. Councilmember Teitzel said the issue is there is not a finished, polished proposal for R19. If Ms. Feser would be willing to revise R19 to include those calculations, he would be willing to withdraw his motion and consider it later. Ms. Feser summarized staff will bring forward a new decision package with this proposal. COUNCILMEMBER TEITZEL WITHDREW THE MOTION WITH THE AGREEMENT OF THE SECOND. Councilmember Teitzel referred to R7, Olympic Beach Park (fishing pier restroom), with a cost estimate of $53,000. As the liaison to the Port of Edmonds, the Port has asked that the City focus on this renovation due to the dire need. It was originally scheduled for 2024 and moved back in this CIP/CFP to begin in 2025. He requested it be moved to where it was originally in 2024 because it is funded by REET 125. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO MOVE THIS PROJECT TO START IN 2024. Councilmember Paine asked if there was adequate REET in 2024 to accommodate this anticipated work. Ms. Feser answered yes as this is a relatively small amount. She explained the reason the project was moved to 2025 is the project is replacement of the restroom ventilation system. Facilities is proposing to redo the restroom roof in 2025 and the ventilation and roof would be done at the same time. Moving the Edmonds City Council Approved Minutes November 6, 2023 Page 9 project to 2025 was a timing issue with facilities, not just an arbitrary change. It would be cost effective to do replace the ventilation system at the same time as the roof. Councilmember Teitzel asked if it would be possible to do the roof repair and the ventilation system in 2024. Ms. Feser answered she would need to coordinate with Facilities on the roof repair; she was unsure the roof project was on their schedule for 2024. Councilmember Teitzel said he would like to move the roof project up especially because the Port is strongly encouraging the City to resolve that because people using the Port appreciate restroom. If it is not possible to move it to 2024, he requested staff get back to council so something else could be done. MOTION CARRIED (5-2), COUNCILMEMBERS NAND AND PAINE VOTING NO. Council President Pro Tem Olson commented she has received a ton of responses from staff and was very impressed by how quickly staff responded and how comprehensive their responses were. One question may have gotten overlooked was related to PWT-28, 175t' Slope Repair. She recalled when doorbelling in 2019, she was told the cones had been in place on the broken part of road for a long time. Her research found that in 2024, the cones will have been there for 20 years. In this year's CIP/CFP, that project was moved from 2026 to 2027. She recognized there may have been a really good reason for that, but at a minimum, she wanted it moved back to 2026 or even sooner. Twenty years seems like an unacceptable duration for the neighborhood to endure that situation. Mr. English said a response was provided, but the cell may gotten covered in the ones sent out this afternoon. The reason the project was moved back a year was to keep it in the years of the CIP/CFP where there is no funding identified. It comes down to identifying a funding source; it could be moved to 2026, but the format is to show the unfunded projects in the last three years which is why it was moved to 2027. Council President Pro Tem Olson said in that circumstance, she will not ask for that change, but she was hopeful by elevating the criticality of this project to her council colleagues and staff, funds could be identified for that project. Mr. English advised that slope is monitored and evaluated annually to measure movement. He agreed it would be nice to identify a funding source because it will be an expensive project. Council President Pro Tem Olson observed the cost estimate was $1.1 million. She noted that project needs to be done when the funding can be identified. Councilmember Paine said the neighborhood where PWT-28 is has some really big hills and there are garbage pickup/hauler issues happening as well. It is a very narrow street and needs additional width to help with services. Councilmember Buckshnis referred to P3 and D14, Waterfront Walkway, and recommended it be completely removed from the CIP/CFP because this legacy project has probably cost the City millions. It is environmentally bad, it is costly, over $1 million has been spent in attorney fees, and sea level rise will likely be over the walkway. She recommended removing this project because it will not happen and there is already a work around by walking on the sidewalk to the east which is ADA accessible. This project is just spending a lot of money on a small link which will be washed away in future years due to sea level rise. COUNCILMEMBER BUCKSHNIS MOVED TO REMOVE THE WATERFRONT WALKWAY COMPLETION FROM THE CIP/CFP. MOTION FAILED FOR LACK OF A SECOND. Councilmember Buckshnis referred to a $688,000 decision package related to bond funds and asked if projects have been done using bond funds. Mr. English said he would defer that question to Public Works Director Antillon who was unable to attend tonight's meeting; he plans to follow up on the facilities - related questions. Edmonds City Council Approved Minutes November 6, 2023 Page 10 Councilmember Buckshnis referred to the PWT-67, Waterfront Emergency Access, and DP 83 which was added last year. It appeared as if it was a carryforward and she asked if transportation impact fees could be used for that project. Mr. English said the city council added the study in 2022 for the 2024 budget so staff created that decision package. Transportation impact fees could not be used for that study; impact fees are calculated based on failing intersections within the City and this study is not associated with growth. Councilmember Buckshnis asked if there was grant funding for emergency access. Mr. English answered there could potentially be an opportunity, staff will continue to look for grants through the BUILD program. 6. AUDIENCE COMMENTS Kerry Radley, Edmonds, said she has lived in the same house on Edmonds Street off 8t' for the past 24 years and is very familiar with Edmonds and walks it regularly with friends and dogs. She expressed concern with the intersection at 8t' & Main where pedestrians cross to reach the Frances Anderson Center field. Over the years, the number of drivers that roar through that intersection has gotten worse and worse, particularly downhill going west as well as going east and it has gotten really dangerous at time during the last 2-3 years. There are times she has crossed using the crosswalk and barely makes it to the opposing lane when a car roars behind her and she has watched that happen to other people walking with their kids. It doesn't happen when major events occur at the field like the Edmonds Art Festival, because there is a police presence and huge numbers of people around. A couple years ago the City put up orange flags which disappeared within a few weeks. She mentioned it to a City worker recently and he said the teenagers take the flags to hang on their walls. She explained the problem to him and said it would be nice to have the poles with the pedestrian activated flashing lights there to alert drivers traveling both ways to the crosswalk. The worker she spoke with thanked her said he would talk to his department, but she never heard anything more other than more flags appeared recently but now only two remain. She asked the council to consider installing the pedestrian activated flashing lights at that intersection. Bob Chaffee, Edmonds, a retired physician, said he had a sign on his desk that said, a consultant is someone brought in to share the blame, which he said was worth remembering. He voiced his opposition to the red cameras, noting Ken Reidy covered the issue well in his article today in MEN. The process is putting the cart before the horse. This should have been developed by the city council, discussed and studied and then considered in the budget. As Mr. Reidy's article showed, in Lynnwood incidents have not decreased and in fact have increased. He acknowledged there was money to be made from red light cameras but it was not nearly as much as has been predicted because there were significant expenses associated with red light cameras. Janelle Cass, Edmonds, expressed her opposition to the installation of red light cameras. As a past Air Force and FAA engineer involved in a lot of hazard and safety analyses, the funding and installation of red light cameras is premature. It is extremely important to take an in-depth look at the underlying causes so the City knows what problem they are trying to fix and then look toward engineering controls before applying an administrative control such as red light cameras. From reading Ken Reidy's article and talking with him, an analysis is required by state law before the council passes an ordinance and funds the cameras. She urged the council to follow a basic scientific methodology - state the problem, come up with a hypothesis and analyze the data. She also expressed her opposition to purchasing the Landmark property at this point in time for the sheer fact the City cannot afford it and she felt there was a false urgency even though it had not been part of a long term strategic plan that includes robust public outreach. She heard another citizen say the public outreach event was more like a high pressure timeshare sales event than having the public express their concerns about the cost and long term burden that property would place on the City. Everyone knows timeshare sales pitches pressure people into buying something they don't need and the City doesn't need the Landmark property right now. Edmonds City Council Approved Minutes November 6, 2023 Page 11 Rowan Soiset, Edmonds, whose pronouns are they/he, referred to renovating restrooms in public facilities, pointing out the importance of considering the implementation of gender neutral restrooms. Gender neutral restrooms are very easy to implement, requiring only a sign saying they are gender neutral or putting up signs stating there are urinals in one restroom and stalls in another. People who want to use a urinal can use that restroom and people who want to use stalls can you that restroom. Signage is not super expensive. They identify as transgender and it would be a massive benefit to them to have gender neutral restrooms because it is extremely stressful to use gendered restrooms. With everything going on in the current political climate, they felt safer using a designated gender neutral space. They also stated their opposition to the proposed red light cameras at three intersections and suggested looking to other solutions. The issue that has been brought up is speeding and they did not see how red light cameras would impact speeding. Another thing to consider is how red light cameras impact the community. There is currently a major cost of living crisis, people are working than ever and fining people large amounts for red light cameras that are sometimes unreliable is very difficult for a lot of people who do not have time to go to court and fight the ticket and end up having to pay them. Joe Scordino, Edmonds, said he is in the City's streams many times a week and at least twice a week with Edmonds-Woodway and Meadowdale High School students. The good news is they are seeing a good number of Coho salmon returning to Lund's Gulch Creek and Shell Creek. The bad news is they are seeing more dead small Coho showing symptoms of the effects of tire dust from roads that enter stormwater and creeks and it is sad for the students to see that. With regard to the Landmark property, he said it is not just a money issue but also a staff time issue. Three directors have commented to council on that project, a heck of a lot of investment in City resources, which needs to stop. The City doesn't have the money for that property at this time and it doesn't make sense. The proposed purchase of the property adjacent to Mathay Ballinger Park is great news. He expressed support for purchasing that property and getting the Landmark property off the table so staff can get back to work on the comprehensive plan where big fixes will be needed to deal with higher density. With regard to the CFP, he suggested the council look at the RCW regarding the CFP. CFPs are financial plans and should be done in advance and implemented in the budget in each of the six years. The CFP and the budget should not be done concurrently; when that is done, the CFP is not a planning document. The council should be weighing where to put resources and what to prioritize. When projects show unsecured funds, the report should describe the source of those funds and staff time should be prioritized related to how much time they spend on various activities, including writing grants. 7. RECEIVED FOR FILING 1. CLAIM FOR DAMAGES FOR FILING 2. BUDGET QUERIES - COUNCIL BUDGET QUESTIONS AND ADMINISTRATION/STAFF RESPONSES 3. WRITTEN PUBLIC COMMENTS 8. APPROVAL OF CONSENT AGENDA ITEMS COUNCILMEMBER PAINE MOVED, SECONDED BY COUNCILMEMBER NAND, TO APPROVE THE CONSENT AGENDA. COUNCILMEMBER CHEN MOVED, SECONDED BY COUNCIL PRESIDENT PRO TEM OLSON, TO PULL ITEM 8.7, RESOLUTION AUTHORIZING USE OF GENERAL FUND OPERATING RESERVES FOR GENERAL FUND EXPENSES, AND POSTPONE IT INDEFINITELY. Councilmember Chen listed reasons for pulling and postponing this item, 1) there is already a Council Business item, 10.1, related to this, and 2) Section 3 of the resolution addresses formation of a taskforce by October 31 which did not occur so it is irrelevant. Edmonds City Council Approved Minutes November 6, 2023 Page 12 AMENDMENT CARRIED UNANIMOUSLY. MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY. The agenda items approved are as follows: 1. APPROVAL OF SPECIAL MEETING MINUTES OCTOBER 17, 2023 2. APPROVAL OF SPECIAL MEETING MINUTES OCTOBER 19, 2023 3. APPROVAL OF SPECIAL MEETING MINUTES OCTOBER 24, 2023 4. APPROVAL OF REGULAR MEETING MINUTES OCTOBER 24, 2023 5. APPROVAL OF CLAIM CHECKS AND WIRE PAYMENTS 6. FINAL 2024 PROPERTY TAX ORDINANCES 9. PUBLIC HEARING 2024 BUDGET PUBLIC HEARING #4 Mayor Pro Tem Tibbott opened public hearing. Barbara Steller, Edmonds, a member of the advocates for environment at the Edmonds United Methodist Church, commented on the hiring of climate action plan manager. She was grateful for the council's work to include and consider issues impacting a healthy future environment in Edmonds as part of the 2024 budget. The goals and measures outlined in the climate action plan must be carefully monitored and adhered to. Costs may be high to hire a manager to oversee the plan's implementation, but the cost of climate impacts may be even higher. She urged the council to keep the climate action plan goals on track by funding a climate manager position. David Jones, Edmonds, encouraged the council to develop and fund a climate action manager position. Everyone wants the City to be fiscally responsible, just like they want their families and institutions in the community to be fiscally responsible. As City leaders, the council developed a climate action plan and in the past asked a staff member to take on the additional duty of managing that climate action plan. However, the goals, objectives and metrics in the 2023 climate action have become much too big to put on the desk of an existing planning department employee who has many other responsibilities. Everyone recognizes in order to address the real changes occurring in the climate and the impacts on their lives, takes everyone doing something different. It is not just something the local, state or federal government does, it is things everyone does including the City. Making those changes also requires changes in the way the City is funded and staffed to ensure there is someone to monitor the plan. The legislature recently recognized changes will be occurring and set targets such as eliminating the use of natural gas in the state by 2045. He questioned who would help manage that transition; there is no funding available to accomplish what the state mandated so a system/program has been created through the State Department of Commerce that makes grants available to municipalities and other entities ready to do that kind of work. Those grants will be competitive and require an experienced staff member dedicated to monitoring the creation of the climate action plan as well as grant writing. It is not something an existing staff member can do, a half-time staff member or someone brand new to the position can do. Just as individuals have to figure out how to make changes in their own lives, the City also has to step up and make those changes. Gayla Shoemake, Edmonds, said she has carefully listened to and read comments from councilmembers over the past year and has been disappointed even from those she voted for. The climate crisis is upon us every day; we see evidence of its dangers in the city, around the country and the world. Although the council approved climate action plans in 2010 and 2023, no further action was taken to guarantee implementation of those plans and no funding was provided to ensure the future of our youth. It was as if after passing the CAP, the council immediately forgot it. She did not believe the council ignored it on Edmonds City Council Approved Minutes November 6, 2023 Page 13 purpose, they just forgot about it. The City's planning department has worked long and furiously to identify steps that need to be taken, but they are overwhelmed with their planning responsibilities and cannot implement these steps. Local volunteers have given time and effort to study climate issues, researching what other communities in the area have done and identifying what needs to be done to provide the best possible future for the City. They are most willing to help, but they cannot do it without professional leadership and neither can the planning department. When there has been a health and safety issue in the past, the city council has always found the money and that is what needs to happen now. She urged the council to be courageous and admit failures in the past, acknowledge their responsibility for the health and safety of Edmonds residents, and hire a climate action manager to lead City staff, community volunteers, and rally the community to prepare for the climate crisis. Jean Patterson, Edmonds, relayed her recent comment to a friend, that Edmonds is in danger of being loved to death. There are so many attractions such as markets, festivals, beaches, restaurants, etc. and she was particularly concerned about traffic mitigation. She did not have any grandiose ideas but it occurred to her since there is pressure on traffic and parking on Saturdays, consideration should be given to having a park & ride at the Edmonds-Woodway High School with a shuttle to bring people into the bowl for the markets and festivals. Jane O'Dell, Edmonds, explained over the last couple months she has had a number of conversations with councilmembers and others about climate issues and it was reassuring to find that so many were ready to see action on the climate action plan. When the city council adopted the updated CAP this year, they took a critical step. A lot of people she talked with didn't know that the CAP hadn't been adopted before and people were just working on it incrementally, trying to make progress. She thanked the council for adopting the CAP, positioning the City to take the next step, implementing the plan. Leading climate preparedness in a city, even a small city like Edmonds is a very large undertaking and she questioned whether existing staff could do it. The mayor's 2024 budget includes a climate action manager; after trying to implement the CAP with City staff and making some progress, staff and the mayor concluded a climate action manager was needed to make real progress on objectives. Ms. O'Dell continued, expressing concern with efforts to find an inexpensive option to fill the position of a climate action manager such as sharing with another city, hiring an entry level person instead of an experienced professional, or otherwise trying to double up on tasks for a climate action manager. Although not a climate scientist, she has worked and led multi -year projects involving large sums of money as a government contractor and as a business executive. The projects she has seen succeed have certain features, one of which is a dedicated leader whose attention is always on the project, not split, not shared. She has also seen projects burn through a lot of funding without producing anything like the hoped -for results because the project manager was retained as a short -termer and was too busy looking for the next gig to focus the way they needed to, they were assigned two projects at the same time and somehow weren't available when a problem arose, or they just lacked the authority to deal with compatriots. She urged the council to hire the right people. Theresa Hollis, Edmonds, said the City's practice of headcount growth that moves in lockstep with workload growth should stop. Directors need to evaluate automating and outsourcing certain functions. For example, the City does payroll accounting inhouse; for over 30 years that administrative function has been outsourced in many enterprises the City's size because it saves money, it brings in best practices, it forces process standardization across departments, and it forces policy compliance. The cost estimate for licensing and implementing the Munis ERP system is $800,000 plus a headcount was added to administrative services during the April 2023 budget amendment for the ERP project manager at a $60,000 salary level, but no RFP was done to evaluate options available to the City for a new ERP system. The City made the decision to stay with the same software vendor and license their new generation software suite. That procurement process for a $800,000 expenditure would never pass an Edmonds City Council Approved Minutes November 6, 2023 Page 14 operational audit in the places she has worked in the past. Now the City has an opportunity to be more cost focused in their implementation planning by issuing an RFP for outsourcing time and attendance, payroll, and certain FIR functions and compare those responses to the Munis system implementation costs for those modules plus the salary and benefits of City staff saved if those functions were outsourced. She asked why not outsource the work if the City can save money while paying employees accurately. She provided another example, public works is requesting a head count to digitize records and enable staff to be more efficient when doing research, but there is no offsetting headcount reduction offered in 2024 from the research workload, which is not unusual, the headcount reductions from the increased use of technology in one department becoming the funding that is needed for the headcount additions or professional services in another department's automation project. Another example is a potential budget reduction as described in her November 1 email to council regarding the City of Shoreline's grants administrator. Decision package 8 requests a new grants manager, yet Shoreline is getting the work done with a limited term administrative level position, an approach Edmonds should consider if they can verify it is working in Shoreline. She suggested recruiting that person after their employment in Shoreline ends. Laura Walls, Edmonds, spoke in favor of hiring a climate action manager. Edmonds is on the frontlines of climate change that everyone is experiencing including sea level rise, high tides and storm surges, heavy floods damaging Harbor Square, last year's drought, impacts to bird populations from the mass casualty extreme heat event in 2021, wildfire smoke, etc. She will never forget attending her first Edmonds Bird Fest last year while smoke and ash rained down from the Cascades. She became dedicated to learning and teaching about climate change after visiting her family in Edmonds on New Year's Eve in 2020 when there was an extreme low time at midnight. They went to Brackett's Landing to look for sea life and when her flashlight picked up what she thought were starfish, they was nothing but detached legs, half bodies, and decaying bits strewn along the beach. She found a huge sunflower star melting down one of the rocks, literally melting away under the ferry dock. There wasn't one single whole starfish anywhere in a place the year before there were hundreds of orange and purple ochre sea stars along the base of the jetty and the ferry terminal rocks. This was the start of the starfish wasting disease that wiped out starfish populations from California to Alaska. The intertidal ecosystem has just barely begun to recover. She was broken hearted to see school children excited to look into tide pools at low tide when she knew how full of life they used to be and how barren they are now. Ms. Walls continued, at that time she was teaching at a mid -western university where she retrained to teach a course in climate change with the director of the sustainability program. In 2017 their students researched and designed a climate action plan very similar to the excellent one Edmonds has. In 2019, the South Bend City Council passed that plan via a legally binding ordinance with the support of their school system, South Bend City Council and Mayor Pete Buttigieg. After all that, key leaders left and now, without a paid professional and trained climate action manager, all the hard work of implementing the plans so many people worked to put together is left to two junior staffers who are quite young and cannot begin to implement all the measures that were so carefully enacted into law five years ago. This cannot be allowed to happen in Edmonds. If anyone thinks hiring a trained professional to lead the climate action plan is too expensive, just wait for the bills to repair flood damage to the waterfront and Harbor Square from sea level rise. Nancy Johnson, Edmonds, co-chair of the Snohomish and Island County Sierra Club group, read an excerpt from a letter to the editor in My Edmonds News by Maplewood K-8 Student Danielle D'Couto, "Last summer was the hottest on record. Ever. And the one before that was the hottest, and the one before that. We've been seeing hurricanes out of hurricane season, some of the most severe wildfires ever displacing millions of people. My grandparents in Detroit saw their city's streets flooded in August. Climate change is real, and we can't run. Our ice caps are melting and it seems like 1.5 degrees of warming are inevitable. But it's not. When we encounter issues like this, that are big and very complicated, we have a tendency to act like someone else is going to clean up our mess than actually Edmonds City Council Approved Minutes November 6, 2023 Page 15 make changes. But it doesn't have to be that way. From small actions, like buying your clothes second hand or eating a meatless meal once a week, to big actions, like buying an electric car or choosing a more efficient heating system, we can make a change. If the people of Edmonds learn about the tax reductions on electric cars, how much carbon is emitted from meat production, the benefits of composting, they will make changes. We all have a choice. To keep closing our eyes, and pretending like nothing is happening, or to take action. You can choose to stand with my future and the future of so many other kids." Ms. Johnson thanked Danielle D'Couto for a timely and powerful letter. She makes excellent points, do we think someone else will clean up our mess? If we learn about the federal IRA and other subsidies becoming available to help people buy EVs and weatherize and electrify their homes, will we take action? Ms. Johnson continued, these changes will benefit all of us by reduced GHG and better health due to less air pollution, but they are often complicated to implement. Most of the GHG in Edmonds are from the private sector. The CAP is a good start, but people need to be aware of the plan and what they can do to help implement it thoroughly and quickly. A climate action manager could pursue grants to help low income families learn how to electrify their homes, create and stage a plan prioritizing the most effective local actions, guide willing community groups into taking coordinated meaningful steps toward sustainable, organize various city departments, take the lead on adaptation planning in this coastal city and much more. Recently widely published research has shown we do not have time to fiddle while Edmonds burns. She believed budgets were a statement of values and hoped Edmonds would make the choice to stand with Danielle. Greg Ferguson, Edmonds, urged the council to support the climate action manager position. Sea level rise is part of adaptation; adaptation isn't addressed in the climate action plan, and hopefully it will be addressed in the comprehensive plan. Mitigation is how gas emissions are reduced. Adaptation is what is done about climate change. A climate action manager can help deal with both those components. The Edmonds waterfront from the ferry toll booths to the Port walkway is at an elevation from 10 to 14 feet. To put that in perspective, during the flood event on December 27, 2022 that coincided with a king tide, Puget Sound sea levels were 12.8 feet which is higher than some parts of the waterfront. In 2050 those levels will probably be 1 foot higher and in 2100, they will be 4 feet higher; sea levels do not stop rising, they keep increasing. There will be devastating floods and the waterfront won't exist in the same condition it is in now in the future. There are huge decisions to be made on a very complicated issue. Should everything be raised up, build a massive seawall, retreat back to Edmonds Way? An experienced, full-time professional is needed to guide the City through those decisions. He urged the council to support hiring an experienced, full-time climate action manager. Georginia Armstrong, Edmonds climate advisory board, asked audience members to raise their hands if they supported the City hiring a climate action manager. In thinking about how far apart we are on the need for this important hire, she came to the conclusion it is because it is looked at through different lenses. The council is strategizing how they can fulfill the request while spending as little money as possible given a leaner 2024 budget. Climate action is a priority that requires the City to protect the community from extreme weather events and do its part to mitigate GHG emissions so the climate doesn't impact future generations. With the council's money -driven lens, most see the position as one that can be shared with a neighboring city, be a junior, entry-level position and funded by the Commerce grant next summer. Through a priority driven lens, it is a full-time, experienced person competent enough to implement the currently stalled CAP, one who can lead an interdepartmental climate team and a contingent of volunteers who need a coordinated community engagement effort led by an experienced climate action manager. Using the Commerce grant funding will limit the term of a climate action manager to less than three years and will eliminate the use of those funds for a vital climate adaptation plan. Edmonds City Council Approved Minutes November 6, 2023 Page 16 Ms. Armstrong continued, most councilmembers think volunteers can work on reducing the community's 98% share of Edmonds GHG emissions, but that thinking is underestimating the specialized work that a CAP requires. Even city staff who have work other than climate action to accomplish, with three action items to accomplish in 2023, have completed only one. There are 61 CAP action items in all. Hiring through a money -driven lens means a climate action manager that is built to fail. She urged the council to make this position a priority. The Edmonds climate advisory board recommends the council fund the climate action manager position up until the Commerce grant is received in July and then the City could use the grant to fund the climate action manager salary through the end of 2024, thus ensuring there is not too much additional burden in the lean budget year. Next year the board recommends the council fund the climate action manager and reimburse the grant money used in 2023 for the climate action manager salary. This money would be added to the remaining grant funds to develop an adaptation plan in which the climate action manager would play a vital role. In this way the City spends less money during the 2024 lean budget cycle, the community gets the CAP leadership it seeks, and the council's promise to support the CAP it adopted will be honored. Joe Scordino, Edmonds, continued his comments from the last public hearing on the budget where he suggested thinking outside. The council usually has decision packages that reflect all the increases and the council debates them and ends up not changing anything. Obviously the council cannot do that this time. Thinking outside the box, he recommended the council think beyond those decision packages and look at each department's budget. He was surprised to find some departments budget's had a 44-47% increase in personnel costs between 2023 and 2024. That increase would the first thing to target especially during a time when revenues do not provide sufficient funding for expenditures. Section 1 of the ordinance essentially says the council approves the attached budget; the council could include language regarding a 10-20% cut and then require staff to come back in January with a budget showing where those cuts were made. The council approves a balance budget and the burden is then on staff to identify where the cuts occur. The council could stipulate across the board, exempt certain departments such as the police department, etc. Another option is to look at existing contracts for nice -to-do things and potentially cut those back and do things differently. He was specifically referring to the contract for the comprehensive plan; a lot of people in Edmonds want to help with the update to the comprehensive plan and there is no reason to pay a contractor to do something the people of Edmonds could do. He suggested an increase in the budget for white paint for crosswalks; the more crosswalks there are, the safer it is for people to walk in Edmonds. Angela Winzen, Edmonds, vice chair of the climate protection committee, thanked the council for adopting the CAP. Many councilmembers say there is no budget to hire someone to lead the charge on the CAP, that perhaps the City's small planning department can implement it as one of their many diverse tasks, or that volunteers can do it, particularly the climate protection committee. That tells her the council is not fully aware what implementing the plan entails or that they do not fully embrace the gravity of the climate crisis. There are a great number of Edmonds residents who are unaware or choose to put their heads in the sand. In fact the true irony is the very thing a climate action manager is needed is to accomplish informing and educating residents that they are responsible for 98% of GHG emissions. The council says the reason a climate action manager cannot be hired is due to the budget crisis and that the City needs to be fiscally conservative, yet the City spent money to create a CAP but now doesn't plan to fund implementation. That is fiscal irresponsibility. If the City is not funding implementation of the CAP, why was it created and why did the council vote to adopt it? Without implementation, the CAP means nothing. Ms. Winzen asked the council to follow through, to be the first step in the ability to achieve the goal of carbon neutrality. She recognized the Commerce grant funding was coming, but that is nearly a year away. The City is decades behind and cannot wait a year to have a climate leader and shouldn't be moving like molasses through the plan with no City climate leadership. The time is now; climate Edmonds City Council Approved Minutes November 6, 2023 Page 17 mitigation is a budget priority. She urged the council to do it right or don't do it at all; hire a qualified full-time climate action manager who can focus all their efforts on making the CAP a success, someone with knowledge and expertise who can catch up on something the City is already so far behind on. If the City hires less than a qualified full-time climate manager, the City will surely fail at their mission and once again will have fiscal irresponsibility. The time to take action is now. Gayle Leberg thanked the council for passing the CAP. She has been working with the City and its partners on climate issues since 2016. The CAP is a good beginning as a statement of intent and hopefully values, however, good intentions are weak. For example, someone may say they intend to lose weight, but it is not until they center it into their daily life that something happens. There is a climate emergency and it takes leadership to respond. A retired Edmonds teacher, she works with high school students in environmental clubs throughout the school district. One cannot miss the feeling of betrayal young people feel when the quality of their futures receive so little priority. Although she does not live in Edmonds, she is the co-chair of the Edmonds Unitarian Universalist Congregation and many of their members live in Edmonds. In 2016 they debated and educated themselves on the climate and adopted a very strong stand on climate, calling for extreme action to respond to climate challenges. The congregation has over 300 members, many of whom live in Edmonds and they would stand with her to implore the council on the necessity of centering Edmonds' response to climate change by hiring a climate action manager. She wanted to be able to tell her congregation and the students she works with that Edmonds is the kind of community that has the courage to rise to this existential crisis and fund a climate action manager. With no further public comment, Mayor Pro Tern Tibbott closed the public hearing. 10. COUNCIL BUSINESS RESOLUTION CONCERNING THE APPROVAL OF OPERATING RESERVE FUND USE AND ADDRESSING THE STRUCTURAL BUDGET DEFICIT Council President Pro Tern Olson explained a resolution on this topic was worked on and amended from the dais at the October 24 meeting and council voted to put it on the November 6 consent agenda so council could see a clean copy before final approval. That is the reason that version of the resolution was on the consent agenda and was pulled and tabled indefinitely. There were numerous issues identified with that version, including compliance with the fiscal reserve policy and for the sake of efficiency, a different version was included in the packet. The proposed resolution is compliant with the fiscal reserve policy and deletes reference to a taskforce which will not be utilized. To reiterate the background provided in the October 24 agenda memo, the mayor's 2024 proposed budget estimates the General Fund balance for 2023 will be more than $2 million below the required reserves. The fund balance reserve policy provides procedures and guidelines for the establishment, use and replenishment of fund balances and reserves. The council discussed at length 2023 estimates for General Fund revenues, expenses and fund balance during the October 19 special meeting. COUNCIL PRESIDENT PRO TEM OLSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE THE RESOLUTION IN THE PACKET ON PAGE 421. COUNCIL PRESIDENT PRO TEM OLSON MOVED, SECONDED BY COUNCILMEMBER CHEN, TO AMEND TO DELETE SECTION 4 BECAUSE IT IS SUPERFLUOUS AND JUST CONFUSES THE ISSUE. Council President Pro Tern Olson said Section 4 references the possibility of an ARPA transfer which may or may not occur, but that is not relevant as ARPA would be used for general operating expenses and not to replenish the reserve. Therefore, per City Attorney Jeff Taraday, it would be preferable to remove that section. Edmonds City Council Approved Minutes November 6, 2023 Page 18 AMENDMENT CARRIED UNANIMOUSLY. Councilmember Buckshnis emphasize the City is in a fiscal emergency and she will stake her career of 13 years in municipal finance on that, noting she probably knows more about municipal finance and all the directors she has worked with. As was done with the resolution on October 24, she proposed adding declaration of fiscal emergency. Add to title COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO AMEND BY REVISING TITLE OF THE RESOLUTION TO READ, A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, AUTHORIZING THE USE OF GENERAL FUND OPERATING RESERVES FOR THE 2023 GENERAL FUND EXPENSES AND ADDRESSING THE STRUCTURAL IMBALANCE AND DECLARATION OF A FISCAL EMERGENCY. Councilmember Buckshnis commented things are not all what they seem to be when looking at the budget. The budget does not indicate what is happening from a cashflow standpoint. All one needs to do is read Councilmember Chen' opinion letter regarding the City being in a fiscal emergency. The numbers do not look good and due to her background, she had to bring this amendment forward to include the declaration of a fiscal emergency. UPON ROLL CALL, AMENDMENT CARRIED (4-3), COUNCILMEMBERS TEITZEL, CHEN, BUCKSHNIS AND COUNCIL PRESIDENT PRO TEM OLSON VOTING YES; MAYOR PRO TEM TIBBOTT AND COUNCILMEMBERS PAINE AND NAND VOTING NO. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO AMEND TO ADD A WHEREAS CLAUSE THAT READS, "WHEREAS THIS SIGNIFICANT STRUCTURAL IMBALANCE WAS CAUSED BY TWO SPECIFIC ORDINANCES ADOPTED IN MARCH AND APRIL OF 2023. THESE NEGATIVE FISCAL TRENDS COUPLED WITH A SHORTFALL IN THE GENERAL FUND OPERATING RESERVES IS NOW CONSIDERED A FISCAL EMERGENCY AS DEFINED BY ARTICLE III SECTION 1 BY THE CITY COUNCIL. Councilmember Buckshnis said Article III Section 1 broadly defines fiscal emergency as economic uncertainties, unforeseen emergencies and unanticipated operating expenses and revenue shortfalls. In March and April 2023, due to the retro pay and increase in salaries, a serious negative trend occurred which continued all year and in her opinion, created a fiscal emergency. Councilmember Chen did not support the motion as it appeared to be redundant. There is already a whereas clauses that states, Article III Section 1 states "(a)ny use of the committed General Fund Operating Reserves shall be used only in cases of a fiscal emergency..." so that issue is already addressed in the resolution. Secondly, the March and April budget amendments were not the only budget amendments that were made; there were also budget amendments made in July and there may be future budget amendments within 2023. UPON ROLL CALL, AMENDMENT FAILED (2-5), COUNCILMEMBERS TEITZEL AND BUCKSHNIS VOTING YES; COUNCILMEMBERS CHEN, PAINE AND NAND, COUNCIL PRESIDENT PRO TEM OLSON, AND MAYOR PRO TEM TIBBOTT VOTING NO. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO ADD SECTION 2 THAT READS, "AFTER THE CITY COUNCIL APPROVES A 2024 BUDGET, A FISCAL EMERGENCY WILL CONTINUE TO EXIST IN 2024 BECAUSE OF THE STRUCTURAL IMBALANCE OF FUTURE EXPENSES EXCEEDING PROJECTED REVENUES UNLESS THE ADMINISTRATION AND CITY COUNCIL TAKE STRONG CORRECTIVE ACTIONS DURING THE DURING THE COURSE OF 2024." Edmonds City Council Approved Minutes November 6, 2023 Page 19 Councilmember Buckshnis commented it doesn't matter what amendments caused the structural imbalance, the trends indicate the city council and administration will need to make significant changes next year to adjust that significant imbalance which could occur in many different ways. It is very obvious by the numbers that there is a fiscal emergency and that something needs to happen right away next year. Councilmember Nand opposed the amendment, finding it precipitous to make statements about the 2024 budget before it is finalized. Council is still negotiating with the administration and she preferred not to forecast the status of the 2024 budget before it is finalized by council. Council President Pro Tem Olson expressed appreciation for the amendment which is basically just saying there is a lot of work to do and indicating the parties need to come to the table to make that happen to right the ship. The numbers are very significant, assumptions of many millions of dollars from red light camera revenues, use of one-time funds, even use of $2 million that was bonded for the sake of deferred maintenance. The council has its work cut out for them to have a responsible budget and she knows they are up to the challenge and will make that happen, but there will need to be course correction beyond those band -aids. Councilmember Teitzel pointed out the definition of structural budget exists on page 12 of the fund balance reserve policy; the first sentence states, a budget deficit or gap that results from a fundamental imbalance whereby current year governmental expenditures exceed current year revenues without any consideration of carryover or prior year unspent revenue balances if they exist. That is the problem that will exist in 2024 without one-time infusions of cash from ARPA, a structural imbalance which will lead to another emergency unless this council takes strong action in concert with the mayor to fix it. That is the reality of the situation and all this amendment does is warn of the situation, that there is an imbalance that needs to be addressed or there will be another emergency. He expressed support for the amendment. MAYOR PRO TEM TIBBOTT MOVED, SECONDED BY COUNCILMEMBER CHEN, TO AMEND THE AMENDMENT TO SUBSTITUTE "MAY" FOR "WILL" IN THE FIRST LINE OF THE AMENDMENT. Mayor Pro Tem Tibbott said using "may" instead of "will" is less definitive and still points to the likelihood of a structural imbalance in the future. He recognized there will be significant challenges as the 2024 budget is approved and not all of them will be displaced during the remainder of the year. In his opinion, it was not advisable to be overly predictive. Councilmember Paine asked if that was an alternate motion or an amendment to the amendment. Mayor Pro Tem Tibbott said it is an amendment to the amendment. UPON ROLL CALL, AMENDMENT TO THE AMENDMENT CARRIED (4-3), COUNCILMEMBERS CHEN, PAINE AND NAND AND MAYOR PRO TEM TIBBOTT VOTING YES; COUNCILMEMBERS TEITZEL AND BUCKSHNIS AND COUNCIL PRESIDENT PRO TEM OLSON VOTING NO. AMENDMENT CARRIED (6-1), COUNCILMEMBER PAINE VOTING NO. MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY. Mayor Pro Tem Tibbott declared a brief recess. COUNCIL PRESIDENT PRO TEM OLSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO PULL ITEM 10.4, 2023 BUDGET AMENDMENT RELATED TO ARPA, FROM Edmonds City Council Approved Minutes November 6, 2023 Page 20 THE AGENDA AS IT IS NOT READY PER THE CITY ATTORNEY AND NEEDS TO BE REWORKED. Councilmember Paine asked for a further explanation. City Attorney Jeff Taraday said he wanted to work the amendment with the administrative services director to ensure it is structured in way that is compliant with the ARPA Final Rule. MOTION CARRIED UNANIMOUSLY. 2. PARKLAND ACQUISITION PURCHASE & SALE AGREEMENT - MEE PROPERTY Parks, Recreation and Human Services Director Angie Feser said she was pleased to present for council consideration a purchase and sale agreement for a one acre property that will preserve existing open space and a well -established tree canopy, expands the only small park in the underserved southern area of Edmonds, and supports a trailhead for the regional Interurban Trail. The parks and planning board reviewed this presentation and proposal at their October 25 meeting and unanimously supported forwarding a recommendation to council to purchase the property. She reviewed: • Parcel Information o Location: South Edmonds o Size: .99 acre o Zoned: R-8 o One house/two outbuildings o Utilities on site: water, power, sewer o $925,000 purchase price o Motivated seller o Threat of development o Appraisal complete o Purchase and Sale Agreement negotiated • Property Highlights o Adjacent to Mathay-Ballinger Park which connects to Interurban Trail o Existing parklike setting 0 260 linear feet of shared property line with Mathay Ballinger Park o Numerous and varied significant trees o Expands existing Mathay Ballinger Park by 55% o Provides additional access from east o Expands Interurban connection o Supports only Interurban Tail trailhead for miles o Zoned RS-8 = 4 houses o Permit started for proposed development • Mathay Ballinger Improvements Edmonds City Council Approved Minutes November 6, 2023 Page 21 o Design and permitting in 2023, construction in 2024 ■ ADA path to playground and continuing to Interurban trail ■ Restroom ■ Parking lot improvements ■ Picnic shelter and tables ■ Benches ■ Drinking fountain City Park System o Park System gaps ■ School district facilities ■ Esperance Park (SnoCo) ■ Lake Ballinger Park 0 2022 Parks, Recreation & Open (PROS) Plan ■ Goal #3 - Parks, Trails & Open Space, objectives #3.1, 3.2 and 3.7 ■ Goal #5 - Natural Resource & Habitat Conservation, objectives #5.1, 5.3, 5.4 and 5.5 ■ Recommendation #1 - Acquisitions to Fill Park System Gaps ■ Recommendation #2 - Open Space and Conservation Acquisitions ■ Recommendation #5 - Trail Connections ■ Travel Shed Map: �4 S Wider Benefits o Interurban Trail and non- motorized transportation o Proximity to - - Mountlake Terrace (.5 mi) - Shoreline (.25 mi) - Mountlake Terrace Transit Center via trail (1.5 mi) Funding o Capital Improvement Program (CIP) /Capital Facility Plan (CFP) Edmonds City Council Approved Minutes November 6, 2023 Page 22 2023-2028 SIX -YEAR CAPITAL IMPROVEMENT PROGRAM CAPITAL FACILITIES PLAN Costs inflated at 3% per year prnj Ncl x pARKLANDACQUISITION 2023 2024 2025 2026 2027 2028 6•Yur Total ftNdWorhood Park SE 1 x A2 Acqunii- n/ oa.kWW in South Edmonds. S 5 1500,000 % A3 fael�6omood earM SR99 - J - - - 5 3.SG5,000 tnunitinn of perkMrW in near SR 99, - $ 5 5 2.11I5,500 5 5 1,505.000 5 A<4osl�onr Uparkbnd irnSouthEdmonds . 1. Parkland Acquisition Fund: $1,000,000+ 2. 2023 Snohomish County Conservation Future Program (SCCFP) Grant o Successful application -SCCFP Board o Award of 75°/D of acquisition and related costs up to $880,000 ■ Appraisal ■ Due diligence ■ Closing costs ■ Demolition ■ Securing site o Awaiting County Council approval in December Next Steps o Council approval of Purchase &Sale Agreement ■ $30,000 Escrow ■ Due Diligence (75 days/mid-January) - Site Survey - Phase 1 ESA (Environmental Site Assessment) o Confirmation of $880,000 grant award (December) o Property Closing (30 days/mid-Feb) o Possession of the property/securing site Councilmember Teitzel commended Ms. Feser on her excellent work, the great package, and expressed his appreciation for all the work done to put this outstanding purchase together that will double the size of Mathay Ballinger Park. He observed a portion of the Mee property extends to 76t1' and asked if that was wide enough for vehicle access. Ms. Feser said it is 15' and currently used as an existing driveway for the house. In the short term, it will probably be used for maintenance and non -motorized access onto the site. She was unsure it would be used to bring cars to parking on the site initially, but if park planning determines a desire for parking on the site, that would be the access point off 76tn Councilmember Teitzel commended staff on the Snohomish County Conservation Futures (SCCF) grant to support this purchase. He asked if there were any strings attached to the grant like there were with Civic Field such as not installing artificial turf. Ms. Feser answered this is a conservation futures program so there are some limitation such as it must remain open space and no buildings can be built other than picnic shelters, play equipment, and amenities to support park open space. Councilmember Chen said he wished all the agenda items were this exciting and smooth. He commended staffs great work. With this addition, he asked if it would be advisable to rethink the location of the improvements planned in Mathay Ballinger Park such as ADA access, permanent restrooms, etc. Ms. Feser recommended continuing with what is planned for Mathay Ballinger as the pathway to/from the parking lot and the permanent restroom are necessary. The Mee property adds to the open space in Mathay Ballinger and the existing buildings need to be secured/demolished to create open space. There Edmonds City Council Approved Minutes November 6, 2023 Page 23 will eventually be a public process to master plan the new property. The improvements planned for Mathay Ballinger are too far along to pause for another 3-5 years. Council President Pro Tern Olson commented it feels good to have project that does not include a bubble of dissension and that everyone in the community is thrilled about. She thanked staff for their hard work, putting this together and thanked the RCO granters at Snohomish County. She suggested emailing Snohomish County councilmembers encouraging them to approve the grant in December. This is a win - win -win and a great job done by all. She also thanked the Mee family, remarking the City is thrilled to be able to enjoy the property they have so obviously loved and nurtured over the years. COUNCILMEMBER PAINE MOVED, SECONDED BY COUNCIL PRESIDENT PRO TEM OLSON, TO AUTHORIZE THE MAYOR TO SIGN THE PURCHASE AND SALE AGREEMENT CONDITIONAL ON ALL THE OTHER ASPECTS. MOTION CARRIED UNANIMOUSLY. 3. UTILITY RATE STUDY AND ADOPTION OF A UTILITY RATE ORDINANCE Senior Utilities Engineer Mike De Lilla introduced City Engineer Rob English and Chris Gonzalez, Principal, FCS Group. Staff is seeking council approval of the utility rate ordinance. Mr. De Lilla reviewed: Why Are We Doing This? o City utilities are enterprise funds that need to be self-sufficient ■ Revenues need to cover costs in the long run o City utilities are built out and have substantial infrastructure replacement needs ■ 30 - 40% of City's mains have exceeded standard useful life estimates ■ Delaying needs increases operating costs and risk of failure - Main breaks - Inflow and infiltration (accelerates need for sewer treatment plant expansions) o Goal is to recover an equitable share of costs from existing/future customers ■ Delays can lead to "snowballing" needs that have adverse rate impacts ■ Debt can be used to spread costs of large projects over time - Rates should support ongoing capital projects (e.g. main replacement program) - Term of debt is limited to the expected useful life of the facilities being funded Key Drivers of Water Rate Increases o Recent inflation (higher than long-term averages) o Increased operating costs ■ Water purchases from Alderwood WWD (8% annual increases projected from Everett) o Capital needs Capital Costs by Year (2023 - 2032) Capital Funding Strategy (2023 - 2032) $ta.o $8.0 Total: $54.5M e .0 0 $6 K0 $2.0 $0.0 N N N N N N N l"7 f7 C7 N N N N N N N N N N u Ywt & Seaview Reservoirs ($9 6M) ■ Main Replacements ($44.9M) Expected to increase annual debt service by $808, 000 Key Drivers of Stormwater Rate Increases o Recent inflation (higher than long-term averages) ■ Less funding available for main replacement program and other needs o Capital needs ■ Need to generate $2.5M in local matching funds for large stormwater projects Edmonds City Council Approved Minutes November 6, 2023 Page 24 Staff proposes setting aside matching funds from existing balances and issuing bonds to fund other capital projects Capital Costs by Year (2023 - 2032) Capital Funding Strategy (2023 - 2032) $10 0 Total: $37.3M $8 0 c $6 0 ARPA $a.7 M Expected to 23% $4 0 ;z 5 M increase annual JJGrants) debt service by $20 �$218,000 $0 0 N N O O O O O O O O O O N N N N N N N N N N ■ Main Replacements ($22.9M) Other Projects ($14 4M) Key Drivers of Sewer Rate Increases o Recent inflation (higher than long-term averages) ■ Less funding available for main replacement program and other needs o Capital needs Capital Costs by Year (2023 - 2032) Capital Fundina Strategy (2023 - 2032) $40-0 $35.0 $30.0 c $25-0 $20.0 $15.0 $10.0 $5.0 $0.0 Expected to increase annual debt service by $3.6M M R - c - N Q O N O O O O O O O O O O N N N N N N N N - - Lynn -wood WP P Edmonds WP PrM E- Edmonds share is : 50% o Other City Sewer Projects ($7.2M) ■ Main Replacements ($33.9M) • Bimonthly Single Family Bill @ 14 ccf Mountlake Terrace $153.49 $158.62 $368.03 Woodinville [1] $146.16 $166.42 $34725 Lake Stevens $99.08 ML $198.00 $339.91 Bothell _ $99.70 11 $202.22 $339.44 Monroe $101.06 1 $364411 $184.30 $323.80 Bainbridge Island $65.28 1 UTV $210.40 $313.35 Shoreline [2] $133.77 Lum $107.40 $295.99 Edmonds (Updated) I .' $286.33 Edmonds (Existing) I :.: I I , $261.49 Bremerton $67.52 $43.00 $149.92 $260.44 Mukilteo $74.74 $49.67 11 $134.96 $259.37 Alderwood WWD [3] $64.06 k22.ab $156.94 $243.09 Lynnwood $77.28 klL69i, $132.35 - ] $241.32 u Water Rate o Stormwater Rate u Sewer Rate [1] Woodinville Water District's sewer rate includes King County's wastewater treatment rate ($104.22 bimonthly) [2] Shoreline sewer rate assuming Edmonds wastewater treatment. [3] Stormwater bill shown for Alderwood WWD assumes Snohomish County's stormwater rate ($132.54 per year) applies. • Recommendations o Adopt proposed rate increases for 2024 - 2026 ■ Water: 9.0% per year ■ Stormwater: 8.5% per year ■ Sewer: 10.0 - 10.5% per year Edmonds City Council Approved Minutes November 6, 2023 Page 25 Water Bill $108.48 $118.19 $128.95 $140.52 $153.08 $166.94 $180.21 Stormwater Bill 46.90 50.89 55.21 59.90 65.00 66.62 68.29 Sewer Bill 106.11 117.25 129.56 14252 156.77 172.45 189.69 Total Bill $261.49 $286.33 $313.72 $342.94 $374.85 $406.01 $438.19 Change from Prior Year +$24.84 +$27.39 +$29.22 +$31.91 +$31.16 +$32.18 Percent Change from Prior Year 1 +9.5% +9.6% +9.3% +9.391. +8.3% +7.9'/ o Monitor financial status regularly, considering adjustments as needed ■ Revisit 2027 - 2029 rate increases sometime around 2026 Councilmember Chen observed the stormwater rate increase was reduced from 13% to 8.5%. He asked what happens if those rates result in excess funds. Mr. De Lilla answered if excess funds were generated, the rates likely would not be as high in the future. Historically that has never been an issue, there have not been any rate decreases for as long as he has been with the City. The City is definitely in a maintenance phase and have a 30-year backlog of projects. Cost savings would be a numerical exercise; there are so many projects and the hope is facilities do not degrade at an even faster rate. To maintain the 1% replacement pace, there may be little extra funding, but rates would just be adjusted in the future and not have as high a rate. Councilmember Buckshnis thanked Mr. De Lilla for his very explanatory email. She asked about increasing sewer rates 10.5% in the third year and why the increase was not 10% for all three years. Mr. De Lilla answered the proposed increase is 10.5% the first year, 10.5% the second year and 10% the third year. Councilmember Buckshnis said it was her understanding the increase was 10%, 10% and 10.5%. She asked why the sewer increase could not be a flat 10% for the next three years due to the uncertainty with Lynwood's growth and the Lynnwood sewer plant as well as the with the Edmonds WWTP nutrient removal project. She referred to the projected rates for 2027-2029 and asked if another rate study would be done. Mr. De Lilla assured another rate study would be done in the future. Councilmember Buckshnis asked how those projections were made and whether it was because bonding was expected by 2026 or 2027. Mr. De Lilla answered bonding could occur as early as next year. A completely separate analysis will be done in the future; the analysis includes 20 years but focuses on the next 3 years where the data is very good, but as time goes on, the data is less accurate. The projections anticipate increases in the future, but until the rate study is done, the amounts are unknown. Councilmember Buckshnis said she was unable to tie the numbers in the CIP/CFP and the raw data other than the reservoirs. She observed the projections are examples for citizens to think about/plan for the future. Mr. De Lilla summarized there more than likely will be additional increases due to inflation and large projects that are needed. For example, it was unknown that the Yost and Seaview reservoirs were as bad as they were and required such extensive repairs which shows the importance of investing in research and due diligence and being as proactive as possible to stretch out rate increases and minimize large spikes. Councilmember Buckshnis commented the good news is Fed Chair Powell is hopeful inflation will go down. She reiterated her suggestion to have the sewer increase be 10% all 3 years to keep it simple until more information is available about Lynnwood and the needs at the Edmonds WWTP. Mr. De Lilla answered it is really early in the planning phase for both the Lynnwood treatment plant and the nutrient removal project at the Edmonds WWTP. Budgets established early on are best estimates based on available data and in the majority of cases, as more data is available, odds are prices will go up. Mr. Gonzalez explained what is driving the rate increases is the anticipated issuance of bonds and the policy assumption that the utilities maintain a combined unrestricted cash balance of 180 days of operating expenses. Given the projections at this point, a 10% increase falls short of that target. The council could decide to do a 10% increase and accept any potential rating issues with the bond rating Edmonds City Council Approved Minutes November 6, 2023 Page 26 agencies when the bond issuance happens. For planning purposes, the balance has been kept at 180 days of expenses. With regard to the multiyear projections, the goal is to have rate increases be as moderate, stable and predictable as possible. That second three year period is typically included to show, a) there are no surprises around the corner and hopefully the rate increases can be comparable to the current 3-year period, and b) to highlight to the council and the public that is not an issue that will just go away. There is no action requested on the projected rates, it is just to show the near term beyond the proposed rate increase. Councilmember Buckshnis pointed out the need for council to develop a reserve policy next year. She observed the 180 day reserves are imbedded, $500,000 for storm, $750,000 for sewer, and $1 million for water. Personally, she preferred to keep the sewer rate increases at 10% per year and will make that motion after council's discussion. She wanted to be considerate of the fact that there is no policy and a policy is needed. The City has a AA rating for utility revenue bonds, she did not expect anything lower than an AA rating, and there is not that much difference between AA and AAA. She preferred to give citizens need a break with a 10% increase the next 3 years. Mr. De Lilla advised'/z% is $0.25/month. Councilmember Teitzel recalled the last time this was discussed it was indicated that fewer than 100 of the 1900 households in Edmonds avail themselves of the utility discount available to households with limited income. There seems to be a disconnect there due to the City not getting the word out to eligible households that the discount is available. In the face of 8-10% increases, the City needs to get the word out more actively. He hoped to have more discussions about that and potentially engage Human Services Program Manager Mindy Woods and others in outreach efforts. Councilmember Paine expressed appreciation for the sensitivity with how this has been developed. She referred to an email today regarding a $75,000 overrun. She cautioned against anything less than 10.5%, 10.5% and 10% increases in sewer due to unknowns regarding the City's aging infrastructure and the potential need to address problems during construction projects. She commented that doesn't happen often, but it could be a $75,000 cost overrun or something really calamitous. The City's aging infrastructure needs to be maintained the best way possible and she appreciated the use of technology improvements. Councilmember Nand pointed out the utilities webpage on the City's website has two links to Snohomish County's low income water and household water assistance program, but that website states the online application is under construction and there is no phone number to seek help. There are references to two programs in the community, one through PSE and one through crisis. She suggested greater transparency on the City's own website. When the utility bills with the higher rates are sent out, she suggested having a paper insert with clear and transparent instructions how to access assistance programs. She provided an example, when she does pro bono work in court, she sometimes sees people trying to explain to a judge why they qualify for a waiver of their filing fee and they are unable to fill out a simple mathematical form. She recently saw someone humiliated in court by a judge because they were on SSDI and couldn't complete the form which she found heartbreaking and wished she could fill out the form for them. She emphasized the need to make assistance programs as accessible as possible to seniors, people with disabilities, people who are not tech savvy and people who do not have access to technology at home. Mr. DeLilla answered the City's program is under senior service; a link needs to be added to the utilities webpage. Council President Pro Tern Olson referred to an email from someone in Edmonds with a really big sewer problem. During the same two week period, she had two friends, one in the bowl and one who lives off 76t' at 171st, who both had major sewer problems at their houses. She feared that is a change and a concern in terms of the City's aging infrastructure and it seems like the wrong time to shave off a 1/2% when there are real issues. Utilities are really high on the list of priorities services to provide to the Edmonds City Council Approved Minutes November 6, 2023 Page 27 community and %2% is only $0.25/month. She encouraged anyone who needs assistance to seek it, but the City needs to be responsible and take care of its infrastructure. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER PAINE, TO APPROVE THE ORDINANCE IN THE PACKET. MOTION CARRIED (6-1), COUNCILMEMBER BUCKSHNIS VOTING NO. 4. 2023 BUDGET AMENDMENT RELATED TO ARPA This item was postponed to a future meeting. 5. LANDMARK PROPERTY ACQUISITION Councilmember Teitzel commented this is a difficulty and visible issue and if it were a different time, he might have a different mindset. He explained on June 27, 2023 when the council approved pursuing the potential purchase of the 10 acre Burlington Coat Factory property, now called the Landmark property he was the swing vote that night, voting in favor of pursuing it because he perceived it to be fairly low risk, requiring only a $100,000 refundable deposit that could be returned if the City backed out by December 31, 2023. He was not aware of the extent of the expense and the risk of this potential purchase, expenses such as legal costs, the city attorney has spent quite a bit of time on this; real estate experts; land use consultants; and a lot of staff time by three directors. As indicated earlier during discussion on the resolution regarding the City's financial situation, the City is in a fiscal crisis now, the run rate of expenses exceed revenues fairly substantially and will continue unless strong actions are taken. He was prepared to make two motions. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO DIRECT THE CITY ATTORNEY TO DRAFT AND BRING TO THE COUNCIL FOR ACTION A RESOLUTION EXPRESSING THE COUNCIL'S INTENT NOT TO EXECUTE THE ADDENDUM CONTEMPLATED IN SECTION 4A OF THE OPTION AGREEMENT FOR THE LANDMARK PROPERTY, RECOGNIZING THAT NOT EXECUTING SUCH ADDENDUM WILL RESULT IN THE AUTOMATIC TERMINATION OF THE OPTION AGREEMENT AND THE REFUND FROM THE SELLER OF THE CITY'S DEPOSIT OF $100,000. Mayor Pro Tem Tibbott commented he was open to resolutions like this from the council, however, he also knew that City staff has been working on this and have a community outreach scheduled to gather more information. He asked staff to speak to the input they expect to receive and how that that might speak to the potential resolution. Planning & Development Director Susan McLaughlin responded the first community meeting was held October 21 in response to direction by council in the decision to authorize the option to purchase and explore what is possible on the site and engage the community in that conversation. Over 60 people attended that meeting; the feedback from that meeting was intended to inform and has begun to inform the site planning options that will be shared with the community on November 18. At the November 18 meeting, attendees will see how their comments shaped some of the design options and provide an opportunity feedback on the design options. As discussed at the October 21 meeting, those with opposing views are welcome to attend those meetings as well. Comment cards will be shared with council in early December per the previously agreed upon schedule. Councilmember Teitzel read the following into the record: We are in a fiscal emergency in 2023 and will continue to be in 2024 without strong actions now. The Administration and Council have a duty to be responsible stewards of taxpayer funds and need to act to enhance revenues and control expenses to deliver the services our constituents expect. We have all heard they have these expectations: great public safety, more and better sidewalks, streets in good repair, more parks and open space within comfortable walking distance for all residents, excellent fire/EMS services, Edmonds City Council Approved Minutes November 6, 2023 Page 28 responsive government, etc. In other words, they expect us to deliver the basics and do them well. Especially in times of a stressed city budget, we need to get back to the basics. While imagining a range of potential uses for the Landmark property can be exciting, the $37 million purchase price (not to mention future development costs) —coupled with the high cost in 2023 and 2024 of pursuing the purchase as well as the significant investment in staff time —is simply not a prudent use of taxpayer resources at this time. Further, it is clear our residents desire more parks and open space well distributed in areas that currently have little of this space. A large parcel of this nature at the very southern border of Edmonds that isn't within walking distance for most S.E. Edmonds residents does not satisfy the need for well -distributed parks and open space, and such a large investment in a single parcel can reduce available funding for well -distributed amenities. It should also be noted that, should Edmonds decline to pursue purchase of the Landmark site, all new revenues associated with standard development of the site will flow to Edmonds, such as: Traffic Impact Fees, Park Impact Fees, Real Estate Excise Taxes, sales taxes, etc. These fees and taxes could well run into the millions in new city revenue —revenue that can be used to invest directly in new sidewalks, parks and other amenities for S.E. Edmonds. In addition, Council should keep firmly in mind other very significant city expenditures are on the near - term horizon in 2024. For instance, when WSDOT obtains title to the Unocal property at the Edmonds Marsh, the city must determine whether to exercise its first right to purchase that 20 acre parcel for inclusion in high priority efforts to restore the Marsh for salmon, birds and wildlife. While WSDOT has not yet set a sales price, it can safely be assumed the price will be in the many millions of dollars. A $37 million investment in the Landmark property may render purchase of the Unocal property very problematic for the city. Especially at this time of financial stress for the city, now is not the time for Edmonds to be engaging in financially risky real estate speculation. I strongly encourage my fellow fiscal conservatives on Council to support my motion. Councilmember Nand expressed her opposition to the motion because she felt it was quite premature. There has been a lot of discussion about the potential tax revenue production capabilities of this property, but she did not think southeast Edmonds and the Highway 99 corridor should not be regarded as just an income producing part of town. That part of town also has population density, a wide range of socioeconomic and ethnically various community members who deserve investment in their part of town. Significant discussions are already underway with members of the Snohomish County Council and the State delegations so if the council votes tonight to kill this project, all that effort will have been for naught. She compare the Landmark property to the Civic Playfield, a project that took 8 years, cost over $13 million, included nonprofit investment and grant investment from various levels of government, and incredible vision of leadership. Councilmember Nand was saddened that when people look at southeast Edmonds, they do not see the possibility for that sort of public space, beautification and support of a community identity; they think it would be better served as a highest and best use, something like an Amazon fulfillment center. There are plenty of industrial and very dense housing projects underway in the Highway 99 community that will generate incredible amounts of property tax income, park impact fees, etc. to support the City's budget. It would be lacking in grace to add all that density and industrial development to that part of town without also offering public investment into quality of life and livability for the community there. She believed the council could work collaboratively with the administration to answer some of the budget challenges due to inflation and other issues related to the pandemic. This is a once in generation opportunity and if Edmonds City Council Approved Minutes November 6, 2023 Page 29 the council does not decide to take leadership on a private -public partnerships, it will be an incredible missed opportunity and a huge disappointment. She encouraged the council not kill this project tonight. Councilmember Paine agreed the motion was premature as the council did not have all the information they have asked for and only some idea about the potential. The packet contains a preview of the presentation given to the planning board; planning board members asked a lot of good questions and there is another community meeting coming up. Southeast Edmonds has always been an area that has been happily neglected, but it has been an economic powerhouse for the City. It would not be fair to have development occur on that site with transportation impact fees or park impact fees go anywhere but that area. This is a way for the City to look at and control how development happens. The council does not have information showing the potential. This is a 10 acre parcel at a cost of $85/square foot that normally sells at $120 square foot. She did not want to have the project killed right now; she wanted the information so the council can make smart decisions regarding partnerships, grant possibilities and other sorts of ways and manners. She looked forward to staff providing a presentation to council in December; this is something that deserves better and more fulfilling discussions in the community and on dais. Councilmember Chen commented the original plan was to wait until mid -December to get information before the council made a decision. He asked how much money had been spent on this project to date and how much more money it would take to get the answers that are needed by mid -December. Community, Culture & Economic Development Director Todd Tatum said to answer the question of whether he had an accounting of the entirety of funds spent so far, he could attempt to do math in public based on what he thinks. Councilmember Chen asked for a rough estimate, observing even without council approval of the $250,000 request, work is being done, consultants hired, etc. He asked for an estimate of how much money has been spent on this to date. Mr. Tatum offered to answer in a couple different ways; $16,000- ish for communications and $14,000 for negotiations on the option. Ms. McLaughlin said the bulk of the cost is to engage the community and then translate that hopefully substantial feedback into design options for the site. The design consultant, who done public -private partnerships across the region, has been informing the design as well as the strategy related to how to package a desirable design to solicit a development partner. That falls under the mayor's $100,000 authorization for consultant funding. Mr. Tatum envisioned a couple thousand dollars in the next couple weeks for the next community meeting and finalizing the graphics so not a tremendous amount between now and November 18. He stressed it takes time to raise money for a project like this. There wasn't a project when the council approved proceeding in June. Funding in the range of $50,000-$75,000 has already been secured from outside the City to supplement City funds, but no grants have been applied for. He envisioned there were hundreds of thousands of dollars in grants that could be brought into this process. With regard to how much money it will take; if the council voted yes to continue the option into 2024, he was not saying there wouldn't be staff time or dollars spent, but significant less than has been spent so far. City staff time will be tremendously augmented by a private partner's staff who will bring lawyers, environmental consultants, master planners, and will do design and permits. Mr. Tatum continued, with regard to whether staff time will continue to be devoted if the council approves proceeding with the option, the answer is yes. He will spend money on something similar because the comprehensive plan tells him to do things like this, to find projects with partners, that build community, compel development in character with Edmonds in places that haven't had it. He will go about his job trying to do things like this because the comprehensive plan tells him to do so. If the council votes this down, this property will be purchased and as has been seen with development along Highway 99, staff will spend time on the developments regardless of whether the City is the lead in the partnership or passive participants in the process. That could be time spent on an Amazon warehouse, a fully built out 1,000 unit project with no public space, or something better than can be imagined. Edmonds City Council Approved Minutes November 6, 2023 Page 30 Councilmember Chen relayed his understanding of staff s response was that all the funds that have been spent are under the mayor's $100,000 spending authority. Councilmember Buckshnis said she is bothered by the $37 million being untested in the market, an amount that would fund the police department for 3 years, a ridiculous amount for the City to gamble in an untested market. She assured this property would not be sold for $37million. The property should be put on the market; the City is not the same as the Port who deals with development. Developments like this should take years to come fruition, not just from June to December. This is gambling money away, spending the time of three very highly educated and highly paid directors to work on this project. Citizens are angry the City is wasting time when they should be working on the comprehensive plan, the EIS, etc. The City's comprehensive plan does not say go out and buy property like this; the comprehensive plan talks about keeping the basic environment, zoning, and land use the same. She was unsure what the updated comprehensive plan would say, but the existing comprehensive plan did not say spend $37 million to purchase property. She pointed out the $37 million would only be the purchase price and did not include design, razing the property, etc. She questioned what would happen to the current tenants on that property. She concluded the City did not have the bandwidth or the money to do something like the Landmark property now. The council should let it go and maybe next year, Snohomish County or Shoreline will pick it up and the City can partner with them. She expressed support for Councilmember Teitzel's motion. To Councilmembers Buckshnis and Teitzel's comments about $37 million, Mr. Tatum said if at the end of the process staff tells the council they should spend $37 million on the City's portion of the property, he would encourage the council to vote no. He did not think the City should spend $37 million on this property or that the City's investment in this property would be close to $37 million. He did not think staff had been allowed to get to the point where they could say what the amount is although he assured it would be significant less. For not a giant proportional investment compared to what has already been put into this project, once a partner is on board, there will be an understanding of what the City's investment in the property will be, test whether $37 million is an appropriate price and know for sure what the City is giving up is the right answer, whether the City is foregoing a $7 million investment to get a 2-acre park, a community center and a bunch of public amenities and great retail and ultimately property and retail sales tax. Mr. Tatum recognized he was probably coming off as a bit animated, but assured he was not committed to making this project happen, he was committed to getting the right answers so the council makes an informed decision. The process is not at the point where staff can give council the right answers to make an informed decision. Councilmember Teitzel relayed when he attended the Economic Development Commission's open house at the site 1-2 months ago, he talked to two moms who live down the hill on the east side of the site. They both said they love to go to Mathay Ballinger Park, but they need sidewalks because they have to walk in the street which is dangerous. He clarified he never intended to say if the property was sold to a developer that any fees and taxes would be used in other places in Edmonds and to treat the site like a cash machine. He reread what he said, It should also be noted that, should Edmonds decline to pursue purchase of the Landmark site, all new revenues associated with standard development of the site will flow to Edmonds, such as: Traffic Impact Fees, Park Impact Fees, Real Estate Excise Taxes, sales taxes, etc. These fees and taxes could well run into the millions in new city revenue —revenue that can be used to invest directly in new sidewalks, parks and other amenities for S.E. Edmonds. Councilmember Teitzel continued, the council approved the purchase of the Mee property in southeast Edmonds; there will be other opportunities like that in the future. Revenue associated with development of the site would provide resources to act on those opportunities when they arise to deliver more to that Edmonds City Council Approved Minutes November 6, 2023 Page 31 area of the City. He strongly believed now was the right time to walk away; the City is not in great financial shape and won't be next year and maybe even the year after. There are significant problems that need to be fixed and even if the price was $10415 million, the City simply does not have the money. He urged council to support the motion. Council President Pro Tem Olson said this is the most ambitious capital investment project the City has ever considered. She was not saying there had never been others or that there won't be others in the future. However, this is a different scale. She appreciated the economies of scale and the opportunity to work with partners and how that makes the City's portion proportionately less than it would be for an independent project. She was not saying that this wasn't a concept or even a plan that the City might ever entertain, but it is cart before the horse. As an example, there has been a lot of time spent talking about this property and very little time this year talking about the comprehensive plan. If time was being spent on the comprehensive plan and focusing attentions there, this might be a product out of the comprehensive plan, a community vision to create something and the long range financial planning. Council President Pro Tem Olson recalled a resident who talked about how the projects in the CIP/CFP become part of the budget over time. If the comprehensive plan indicated a desire for a community center, aquatic center etc., none of those are in the CIP/CFP. That all needs to be balanced out and fleshed out and what comes out on the other side are the residents' priorities and then find the right place to do it. Perhaps when all that is figure out and the City's finances get figured out, that property or another property will be available. There has been benefit to the City and the property owner, and potentially through these efforts and the excitement about what can happen at the gateway there will be opportunity to make great things happen there without the City being the underlying force to fund, cheerlead and lead it. Council President Pro Tem Olson said she has spoken about some specific ideas she thinks would be great community amenities at that location such as an Ikea or arena sports and the footprint of those entities is 3.5 acres plus parking. She suggested putting feelers out and encouraging people with connections to pursue the property. She summarized the City needs to be out of the business of leading this project and not be on the hook financially to make it happen. Council President Pro Tem Olson said she attended the community engagement and there were definitely people in attendance who had a lot of enthusiasm for the specific project and the specific location, but that was only about 10% of people and at least half of the people were from the neighborhood. She got the same feedback other councilmembers received about wanting the council to pay attention and invest in the area, but not necessarily asking for this project, not being thoroughly excited about increased traffic on the side streets in that area, having concerns about the flooding they are already experiencing and how more development would affect that. Where parks and open space is really needed and where she hoped Parks will focus in the coming year is the neighborhood immediately west of Highway 99 which does not have a walkable park a mile in each direction. She appreciated the memo Councilmember Teitzel provided, and although she had no part in writing it, it resonated with her and she could have written it herself because she felt 100% the same. She hoped the council voted tonight so the spending on this project stops and starts focusing on encouraging private entities to make something happen there. Ms. McLaughlin responded to reoccurring themes in Council President Pro Tem Olson and Councilmember Buckshnis' comments regarding the policy framework. She echoed Mr. Tatum's comments that staff is mission driven and offered to provide the policy framework in the PROS plan and the economic development element of the existing comprehensive plan that justify what staff is doing. They talk about using public -private partnerships to achieve public spaces and civic uses. It is challenging for a City like Edmonds to establish new uses in a part of town that has been completely underinvested in likely for decades. The City does not have a great track record on Highway 99 for encouraging tax Edmonds City Council Approved Minutes November 6, 2023 Page 32 generating uses. The development anticipated in the subarea plan is not occurring; a lot of projects have come and gone and have not be delivered. In looking at the City's budget concerns, it is important to recognize the trajectory for getting projects built is pretty low right now and the climate for development is also fairly low. Thinking about building sidewalks and enable positive growth on the southern end of the corridor is what the subarea plan envisioned, for this to be a gateway and a place where community members can gather. She offered to provide the policy framework at a future meeting. Ms. McLaughlin assured the comprehensive plan has not skipped a beat. If councilmembers have question about how staff is managing their existing workload, she invited inquiries. The comprehensive plan has been to the planning board a few times, there is a joint meeting with the EDC on Wednesday, neighborhood meetings are starting and it is completely on schedule. Mayor Pro Tem Tibbott asked when staff could bring the results of the outreach and potential for partnerships to the council. Mr. Tatum said the original work plan included a briefing on November 28 and a decision on December 5, but it could be done a little earlier. Councilmember Chen referred to the fundamental questions about what is need in southeast Edmonds. The council has heard time and time again and the reality is there are public safety concerns and a desire for a police substation and a community center. Before today's council meeting, the consultant described three different design possibilities. What he walked away from that with was three styles of housing development and none of the community needs surfaced in those concepts which was concerning to him. There is already a lot of housing development on Highway 99 and 10 acres of concentrated housing development is not what the community needs for the moment or in the years to come. Ms. McLaughlin emphasized the civic uses are a fixed constant in the three options reviewed with the advisory committee today. Staff wouldn't be engaged in this exercise if the community didn't get something out of it and ideally the top three that have been identified in the community poll, previous planning exercises and neighborhood meetings are police annex, community center, and gathering places. The most important thing to determine at this stage is the base square footage needed for those civic uses so the consultant can factor that footprint into the development options and start determining a proportion of civic versus private investment. At the end of the exercise and by December 5, there can be some level of determination regarding the proportion of the City's investment, not a dollar amount, but a proportion. That will still be negotiable until 2025 when the City would close on the property. Over that I1/2 years, the City would do robust due diligence, ideally with a development partner on hand, so the City would not bear all the costs. She emphasized housing was a critical component of this 10 acre development due to the desire to build a community, have thriving retail, and activate community and public spaces. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO EXTEND FOR 15 MINUTES. MOTION CARRIED UNANIMOUSLY. Councilmember Buckshnis described why Ordinance 4079 had to be repealed. The City of Edmonds has not been doing what they need to do with regard to design standards and codes, everything that developers need to develop including that the information in the EIS was not complete. She said all the shiny stuff is wonderful, but the fact of the matter is development is not occurring because the City does not have good codes or design standards in place, a problem that has existed for a long time. She expressed concern with spending money the City cannot afford on the Landmark property. Even if the price was $10 million, the City cannot afford it. It would be great if money grew on trees, but it doesn't. The council needs to step away, allow the property owner to put the property on the market and see if someone buys it. Councilmember Buckshnis continued, during her research on repealing Ordinance 4079, she talked to a lot of developers, consultants and architects, who said that is a very bad site and they did not believe it Edmonds City Council Approved Minutes November 6, 2023 Page 33 would sell for even $10 million. She preferred to test the market to see what it would sell for and embark on a 1-2 year long process. Too much time is being spent on this project when the City's code has yet to be cleaned up which the council has been requesting for a long time. She questioned why staff was continuing this process when the City does not even have $5 million to invest in this property. Councilmember Teitzel referred to an image Ms. Feser provided with available park space on the west side of Highway 99 in south Edmonds that shows it's a wasteland with not much there. The City needs to obtain park and open space for those residents within comfortable walking distance from their homes; that is what residents are saying they want, not a 10 acre site at the very southern border of the Edmonds. At a different time he might be excited about this property, but tonight a majority of council voted that there is a fiscal emergency. When there is a fiscal emergency, strong actions are needed to turn that around and if not, the City will be in deep trouble next year which will mean layoffs. The City needs to change course and this is the first step. He urged the council to support the motion. Councilmember Nand reiterate this is quite premature. She found it an interesting contrast that earlier tonight councilmembers thanked the Mee family for coming to City first and wanting to dedicate their property toward future use and future generations. This property owner also came to the City first and wanted to dedicate their property to future use and future generations, but the reception has been quite different. No one is asking council to sign a $30 million check to the property owner today or to sign on with a developer; the intent now is fact finding and determining if there are feasible partners and gaining a better understanding of this once in a lifetime opportunity. When one looks at a City like Edmonds and skyrocketing real estate prices, she envisioned without adequate exploration, future councils will question why the council passed on this opportunity. It simply isn't known whether this is a good deal or what potential private partners there could be. There has been interest from other public entities' community development funds. Councilmember Nand continued it would be incredibly premature to shut this down now. Highest and best use could have been considered for the Mee property; it could be developed with a fourplex which would generate park and traffic impact fees that could have been used elsewhere. She could have made that argument about Civic Playfield; why not put 500 units on that property and use all that money for something else in the future. This is not even at a final decision point, the intent is just gathering information. Killing this project is premature and the arguments are getting tired because highest and best use can be argued for any property in the City. She could make that argument for Unocal; there should be high rise luxury townhouses on that property and take all that money and do great stuff for the environment. Councilmember Nand was concerned these arguments were being applied to a part of the community that has been underinvested in and underserved. There can't even be a responsible discussion about the facts on the ground and due diligence because of the level of intransigence. She lives in this part of town and has spoken to her neighbors about this project; a lot of people who live in the small apartments who may not necessarily have cars are really excited by the idea of having safe places to walk their children like a community center, library, or something geared toward children. There is nothing on Highway 99 geared toward children, nothing comparable to what is seen in Edmonds' historic downtown business district. Killing this project tonight would be tragic and premature. Mayor Pro Tern Tibbott reminded the motion is to direct the city attorney to prepare a resolution, not to kill the project. Councilmember Chen asked the proper procedure to table until December 5. City Attorney Jeff Taraday answered there are several different motions that can be used to delay action on a pending motion Edmonds City Council Approved Minutes November 6, 2023 Page 34 including a motion to table which is not debatable or amendable or a motion to postpone indefinitely which is debatable. As Councilmember Chen began to make a motion to table, Councilmember Buckshnis raised a point of order whether it was appropriate to make a motion to table when there was already a motion. Mr. Taraday advised a motion to table can be raised at any time a motion is pending; it is intended to table the pending motion. COUNCILMEMBER CHEN MOVED, SECONDED BY COUNCILMEMBER PAINE, TO POSTPONE TO DECEMBER 5. Councilmember Buckshnis raised a point of order, advising there is a motion on the floor. Mr. Taraday advised a motion to postpone or table would be in order at this time. Any time a motion is pending, there can be a motion to defer action on the pending motion. Mayor Pro Tern Tibbott asked if a tabled item could be brought back on the agenda. Mr. Taraday explained the motion was to postpone to a certain date. Councilmember Chen commented at this point staff time and consultant fees have been invested and there has been public input. By December 5, staff will have additional information for the council to use in making a decision. Between now and December 5 is about one month. The council is not bound to the purchase and sale agreement or committing $37 million at this time. He has talked to people on the trail, at the dog park, etc. and there are mixed reactions. He wanted to give staff additional time to provide information so council makes a decision based on the study, input and research that has been done versus just emotionally making an arbitrary decision. Councilmember Buckshnis did not support the motion to postpone. This is not an arbitrary decision; what's happening is some councilmembers are very fiscally minded and object to spending directors' time, directors whose combined salary is over $500,000, in addition to consultants and the city attorney when the City does not have the money to purchase the property or participate in a partnership and it should have been a longer term project. She has seen cities work on projects that take much longer than six months. She urged the council to consider the cost of staff time and resources and consultant time that will continue for the next month as well as consider what is happening with other projects like updating the code, design standards, comprehensive plan, CARA, etc. Council President Pro Tem Olson did not support the motion. She can make a decision now and refutes anyone saying that is based on emotion and not substance. She has been looking at this very closely for a long time. To the councilmember who compared this to the enthusiasm for the Mee property, the community does not have overwhelming excitement for the Landmark property. With a property this time consuming and this expensive, there should be community support. At another time when priorities in existing plans have been moved forward, there could be a groundswell and excitement in the community. She was very concerned with the City spending this much time, money and effort when the community was not excited about the property. She urged the council to vote against postponing the motion. Councilmember Paine expressed support for the motion to postpone to December 5. She acknowledged comments from community members have been mixed, but some are excited to learn more about the opportunity and potential on the site. This is something interesting and deserves to be fully explored by council. She felt it was premature to get rid of this work plan when staff is continuing work on the planning process. She was willing to give staff more time to develop information. Councilmember Nand commented this motion is timely and with this timeline, council still has the opportunity to back out of this deal before option has to be exercised. This provides time for the council Edmonds City Council Approved Minutes November 6, 2023 Page 35 and the administration to gather information from the community and make a responsible decision. She wanted to have all the information available; the council owes it to the community and this property owner who gave the City an incredible opportunity by not shopping the property around to get the best deal and dedicating it to public use if it is feasible for the City and future partners. She summarized she support the motion. UPON ROLL CALL, MOTION CARRIED (4-3), COUNCILMEMBERS CHEN, PAINE AND NAND AND MAYOR PRO TEM TIBBOTT VOTING YES; COUNCILMEMBERS TEITZEL AND BUCKSHNIS AND COUNCIL PRESIDENT PRO TEM OLSON VOTING NO. 11. MAYOR'S COMMENTS 12. COUNCIL COMMENTS COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO EXTEND FOR 5 MINUTES. MOTION CARRIED UNANIMOUSLY. Councilmember Paine commented it was a delight to meet the Hekinan delegation and she hoped they had a marvelous time. Tomorrow is election day and she hoped everyone had turned in their ballots. As the councilmember responsible for the infamous idea of sharing a climate action manager with other jurisdictions, Councilmember Nand spoke in defense of the idea. Some neighboring jurisdictions such as Mountlake Terrace and Lynnwood do not have climate action plans and do not prioritize funding a climate action manager. However, by using the State Department of Commerce's grant funding, instead of each individual jurisdiction basically reinventing the wheel, they could start to implement some of the norms, education, and outreach to not just Edmonds' population of 43,000 but potentially the combined population of Lynnwood, Mountlake Terrace and Edmonds of over 100,000 and hopefully begin to influence behaviors. Councilmember Chen emphasized tomorrow is election day. It is a very important day and there is no council meeting tomorrow. Mayor Pro Tern Tibbott reported there will be a presentation from Police Chief Bennett next week regarding red light cameras. A public hearing regarding red light cameras will follow the presentation. Council President Pro Tem Olson commented the public hearing on red light cameras is not a mandatory public hearing, the council just wanted to give the public an additional opportunity to weigh in on the issue, separate from audience comments. She thanked everyone who has served in the armed forces and announced the Veterans Day celebration this weekend at the Veterans Plaza on Saturday, November 11 at 1 p.m. In addition to appreciating all those who have served in the armed forces, there will be a dedication of benches to the late Jim Traner who was so instrumental in making the Veterans Plaza happen as well as Ron Clyborne who also did incredible things to make the Veterans Plaza possible Councilmember Teitzel recalled in September the council sent a letter to Governor Inslee asking to meet with him about the Edmonds Marsh. The governor is willing to meet but unfortunately is too busy in November and suggested meeting with his regional outreach representative for Snohomish County. Councilmember Buckshnis, Dr. Scordino and he will be meeting with that individual on November 16 to explore restoration potential and how ownership of that site may factor into restoration. Councilmember Buckshnis thanked everyone who has called and emailed her about the climate action plan. She reiterated the CAP is inadequate, it is only GHG centric and as Greg Ferguson mentioned, adaptation needs to be incorporated in the CAP. She hoped the CAP would be pulled off the shelf and Edmonds City Council Approved Minutes November 6, 2023 Page 36 someone starts working on that as well as implementation. She has spoken about the plan with Dr. Nick Maxwell, a planning board member, who recently received a degree in this area who mentioned a website, Rewiring America, that has a lot of good information. Her issue with hiring a climate action plan manager is the City does not have an adequate CAP and will have a $5,000 Department of Commerce grant available in June simply by applying. She recommended postponing hiring that position due to the City's fiscal emergency. 13. ADJOURNMENT With no further business, the council meeting was adjourned at 10:20 p.m. SCOTT PASSEY; CLERK Edmonds City Council Approved Minutes November 6, 2023 Page 37