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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 Edmonds City Council Approved Minutes October 10, 2017 Page 1 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. Edmonds City Council Approved Minutes October 10, 2017 Page 2 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. Edmonds City Council Approved Minutes October 10, 2017 Page 3 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.) G� DAVID O. EARLING, MAYOR TT PASSEY, ITYI/ I A Edmonds City Council Approved Minutes October 10, 2017 Page 4