20171010 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES
October 10, 2017
ELECTED OFFICIALS PRESENT
Dave Earling, Mayor
Thomas Mesaros, Council President
Kristiana Johnson, Councilmember
Michael Nelson, Councilmember
Adrienne Fraley-Monillas, Councilmember
Diane Buckshnis, Councilmember
Dave Teitzel, Councilmember
Neil Tibbott, Councilmember
ALSO PRESENT
Noal Leonetti, Student Representative
CALL TO ORDER/FLAG SALUTE
STAFF PRESENT
Al Compaan, Police Chief
Phil Williams, Public Works Director
Carrie Hite, Parks, Rec. & Cult. Serv. Dir.
Patrick Doherty, Econ. Dev & Comm. Serv. Dir.
Shane Hope, Development Services Director
Scott James, Finance Director
Brian Tuley, Information Systems Supervisor
Rob Chave, Planning Manager
Dave Turley, Assistant Finance Director
Kernen Lien, Senior Planner
Jeff Taraday, City Attorney
Scott Passey, City Clerk
Jerrie Bevington, Camera Operator
Jeannie Dines, Recorder
The Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Earling in the Council
Chambers, 250 5" Avenue North, Edmonds. The meeting was opened with the flag salute.
2. ROLL CALL
City Clerk Scott Passey called the roll. All elected officials were present.
3. APPROVAL OF AGENDA
COUNCILMEMBER FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER
TIBBOTT, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED
UNANIMOUSLY.
4. APPROVAL OF CONSENT AGENDA ITEMS
COUNCIL PRESIDENT MESAROS MOVED, SECONDED BY COUNCILMEMBER TEITZEL,
TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda
items approved are as follows:
1. APPROVAL OF COUNCIL SPECIAL MEETING MINUTES OF SEPTEMBER 26, 2017
2. APPROVAL OF COUNCIL SPECIAL MEETING MINUTES OF OCTOBER 3, 2017
3. APPROVAL OF COUNCIL MEETING MINUTES OF OCTOBER 3, 2017
4. APPROVAL OF CLAIM, PAYROLL AND BENEFIT CHECKS, DIRECT DEPOSIT AND
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October 10, 2017
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5. PRESENTATION
1. FIRE PREVENTION WEEK PROCLAMATION
Mayor Earling read a proclamation proclaiming October 8-14, 2017 as Fire Prevention Week throughout
Edmonds and urging all residents to develop a home fire escape plan with all members of the household
and practice it twice a year, and to participate in the public safety activities and efforts of South Snohomish
County Fire & Rescue during Fire Prevention Week 2017. Kevin Zweber, Deputy Chief - Fire Marshal
accepted the proclamation on behalf of Snohomish County Fire & Rescue.
Deputy Chief -Fire Marshal Zweber explained Fire Prevention Week is the longest running public health
observation, the first presidential proclamation was in 1925. The more citizens are educated in what to do
and how to respond, the safer the community will be.
2. PRESENTATION OF THE PROPOSED 2018 CITY BUDGET
Mayor Earling presented the proposed 2018 City budget message:
As I have said in previous years, the budget process begins in late Spring. While the time span from May
to October may seem long, there are many good reasons, not the least of which is having as much revenue
and expense information as possible, and we need this much time to finalize this proposal.
I must tell you, as I have the previous couple of years, our economic prospect in Edmonds continues to be
strong, and once again improving. With the continued strong city, regional and national economy, along
with key strategic decisions we have made, our revenues continue to grow. Our 2017 operating revenues
are projected to be 0.8% higher than our 2016 actual revenues and the 2018 revenues are projected to be
0.5% higher than projected 2017 revenue.
One example of that continued strong economy is, as of the end of September, we are $362,000 ahead of
our record sales tax revenue of 2016, with much of the improvement coming from automobile sales and the
construction trade. We should also acknowledge the growing revenue from our many fine restaurants all
across the city. Another example of continued strength; over the past three years, we have added over
$108.9 million in assessed value in new home and commercial construction, with another $38+ million
projected for 2018.
If we look across our community it is obvious the financial health of Edmonds is strong. Our business
community is alive and vibrant. Our real estate market and construction continues to show record strength,
and unemployment is low. And with the expected growth of the Puget Sound region, we know our chances
for 2018, barring some major national or international incident, should remain resilient.
However, while all is well now, we must remember we are in the ninth year of sustained economic recovery
since the 2008 recession. All of us need to bear in mind that we will again hit a "bump in the road" at some
point, and we need to prepare for it. We also need to remember, while revenues continue strong — our
expenses continue to grow.
As most of us know, commercial and residential construction has increased dramatically the past two or
three years. That, with the city's own projects, keeps planning, engineering and building inspectors on the
2nd floor "buried". Their workload is extraordinary. So, continuing last year's hiring trend, we will again
focus on our current staffing needs. This budget adds four new staff members.
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Our major projects on Highway 99 and the Waterfront Access Project will add to the staff workload. In
addition, we have appointed a Task Force to develop a Housing Strategy which will help us identify
affordable housing options. Again, more staff time and resources.
I am guessing the council and citizens sometime tire of me in the Budget Messages and State of the City
presentations remaining so "cautious" for budgeting purposes. Beginning with 2014 we have been very
successful in rebuilding from the difficult financial reductions we needed to make in the 2013 budget. We
have also been successful in building a vibrant local economy. That, with the strong regional and national
recovery, has put us in a very strong cash position.
To balance all this good news and cash, we need to acknowledge our community has too often lagged far
behind in addressing many of our important city needs. Not keeping up with maintaining our roads is a
great example. The past 5 years we have been playing catchup with road resurfacing to the tune of $6
million after years of neglect and inattention.
Another great example is, for years only $56,000 per year has been devoted to maintaining all of our city
owned facilities. This current year we are spending $400K to begin catching up.
The first major decision of the 2018 budget is a conservative commitment to move $760K from our cash
position to the Contingency Reserve Fund. While we are currently within the recommended range for
reserves at 14.4% the additional funds will move us to 16.1%. This is an important decision as it will help
us withstand an economic downturn. In addition, such a move should help our bond rating.
Again, with our improved cash position, the budget increases to $1.5 million for our street overlay program,
$530 thousand for needed city facility improvements and maintenance, and $250 thousand set aside for
projects of interest to the City Council; all substantial increases over last year.
While we've spent several years catching up on needed one-time expenditures, we still have some large
investment needs: replacement of our antiquated telephone system; major improvements in our IT
infrastructure; and replacement of the city hall elevator which, when last repaired, was done with a used
part that was only available in Argentina!
Remembering that our city is over 125 years old, the 2018 budget continues to focus on major upgrades to
our water, sewer and stormwater systems.
We know this past year we were able to purchase Civic Field from the Edmonds School District. Following
a lengthy public process and planning period, we now need to turn our attention to raising the funding
needed for the $10-12 million projected cost.
As we seek funding from County and State grants, foundations and major corporations, we need to
demonstrate the city's commitment to the project. The 2018 budget contains $2 million to establish a fund
which will assist us in moving this vital project forward, providing a legacy for future generations. Again,
these funds will better position the city to leverage important, additional funding.
Ladies & gentlemen, we have made exceptional financial progress for the city the past five years. We need
to be willing to congratulate ourselves for that progress. With the help of council, staff and the community,
we are in a much stronger position than in the dark days of 2012.
We also need to acknowledge the strong regional and local economy. Edmonds has become a vibrant, busy,
daytime destination, whether downtown, Westgate or Highway 99.
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The 2018 budget tries to maintain the balanced approach we have achieved in the past five years, balancing
expenditures with revenue. Yes, we have a strong economy yet, knowing the downturn will come at some
point, we are also building our reserves for that downturn.
In closing I want to thank our Directors for their hard work and finding compromise to bring our budget
together. In particular we need to appreciate the hard work of the Finance Department.
Council President Mesaros acknowledged Mayor Earling's comments about the budget; now the Council
has work to do to make choices regarding how the city utilizes its resources and serves its citizens.
Council President Mesaros announced the Marsh Study Selection Task Force (Councilmembers Buckshnis,
Nelson, Shane Hope and Kernen Lien and himself) met this morning and narrowed the selection to two
firms, Windward Environmental and The Watershed Company in partnership with Herrera. He will
schedule presentations from each firm to the full Council. The Council will then select a vendor for a
baseline study of the Edmonds Marsh.
6. ADJOURN TO COMMITTEE MEETINGS
With no further business, the Council meeting was adjourned to committee meetings at 7:20 p.m. (Parks,
Planning & Public Works Committee in the Jury Meeting Room, Finance Committee in Council Chambers
and Public Safety & Personnel Committee in the Police Training Room.)
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DAVID O. EARLING, MAYOR
TT PASSEY, ITYI/
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