20171114 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES
November 14, 2017
ELECTED OFFICIALS PRESENT
Dave Earling, Mayor
Thomas Mesaros, Council President
Kristiana Johnson, Councilmember
Michael Nelson, Councilmember
Diane Buckshnis, Councilmember
Dave Teitzel, Councilmember
Neil Tibbott, Councilmember
ELECTED OFFICIALS ABSENT
Adrienne Fraley-Monillas, Councilmember
1. CALL TO QRDERIFLAC SALUTE
STAFF PRESENT
Jim Lawless, Assistant Police Chief
Phil Williams, Public Works Director
Patrick Doherty, Econ. Dev & Comm. Serv. Dir.
Shane Hope, Development Services Director
Scott James, Finance Director
Dave Turley, Assistant Finance Director
Rob English, City Engineer
Brian Tuley, IT Supervisor
Jeff Taraday, City Attorney
Linda Hynd, Deputy 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, 250 511 Avenue North, Edmonds. The meeting was opened with the flag salute.
Mayor Earling commented on the recent unfortunate incident at the building under construction at Pt.
Edwards. Late last month, two young African -American apprentice workers arrived at the job site to find
a noose hanging conspicuously in an area where they would find it. They were naturally horrified by what
they found and raised a concern with their supervisor. Unfortunately, in addition to the shock of what they
found, rather than being offered support and comfort, they were met with dismissive comments. This
issue was brought to the City's attention early last week and the Edmonds Police Department immediately
began a thorough investigation which continues to this date.
Mayor Earling found this incident abhorrent, offensive and entirely beneath the expectations in the
community and said this type of conduct simply cannot be tolerated in Edmonds. On behalf of the City
Council, he conveyed an expression of sympathy and support to the victims. To date, development's
contractor, Venture General Contracting, has conducted an investigation and determined the job site
superintendent and another employee acted improperly in response to the incident and their employment
has been terminated. He was heartened to know that Venture had taken this incident seriously and acted
according. In deference to the victims' privacy and to the ongoing status of the Police Department's
investigation, he was unable to offer further information at this time. Lastly, he stressed Edmonds is an
open and accepting community that does not tolerate such repugnant behavior. We must all work together
to keep Edmonds free of such incidents.
Council President Mesaros expressed support for Mayor Earling's comments, relaying this is an
opportunity for everyone to rethink who they are, what they stand for and to be vocal about their dismay
over this happening in the City. On behalf of the Mayor and Council, he assured this will not be tolerated
in the City of Edmonds.
Edmonds City Council Approved Minutes
November 14, 2017
Page 1
2. ROLL CALL
Deputy City Clerk Linda Hynd called the roll. All elected officials were present with the exception of
Councilmember Fraley-Monillas.
3. APPROVAL OF THE AGENDA
COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCIL PRESIDENT MESAROS,
TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED
UNANIMOUSLY.
4. APPROVAL OF THE CONSENT AGENDA
COUNCILMEMBER TIBBOTT MOVED, SECONDED BY COUNCIL PRESIDENT MESAROS,
TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda
items approved are as follows:
1. APPROVAL OF COUNCIL SPECIAL MEETING MINUTES OF NOVEMBER 6, 2017
2. APPROVAL OF COUNCIL MEETING MINUTES OF NOVEMBER 6, 2017
3. APPROVAL OF CLAIM CHECKS
5. PRESENTATIONS
1. SMALL BUSINESS SATURDAY PROCLAMATION
Mayor Earling read a proclamation proclaiming Saturday, November 25, 2017 as Small Business
Saturday and urged the residents of our community and communities across the county to support small
businesses and merchants on Small Business Saturday and throughout the year. He presented the
proclamation to Chamber President and CEO Greg Urban, Edmonds Downtown Alliance Board President
Kimberly Koenig and Downtown Edmonds Merchants Association President Tracy Felix.
Ms. Felix thanked the Council for their support and for acknowledging the importance of local
independent business in Edmonds. Local independent merchants are people who live and work next door.
She invited the public to kick off their holiday shopping in their home town. Small store retail is a tough
gig, especially in this era of online and big box store shopping but small businesses drive the local
economy. Research shows a strong correlation between the percentage of small locally owned firms and
various indicators of personal and community health and vitality. Shop Small is an outgrowth of the 350
project that started in 2009. The 350 project supports independent, locally owned business across the
country by inspiring consumer loyalty to the storefronts that directly fund their communities. It takes
what happens once a year at the Shop Small event and transforms it into acknowledgement that everyone
needs to put their money where their hearts are and go there more than just once a year.
Ms. Felix suggested thinking of three businesses you would miss if they went away, stop in and say hello,
pick up a little something that makes you smile and that's what will keep businesses around. The 350
philosophy is to pick three businesses and once a month, think about spending $50 at one of them; pick 3,
spend 50 and save your local economy. There are many awesome stores and restaurants in Edmonds in
addition to the beach and view. She invited the public to make a day of it November 25 and any day of
the year to support their community.
2. PRESENTATIONS BY EDMONDS MARSH STUDY CONSULTANT FINALISTS
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November 14, 2017
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Windward Environmental
Jenny Love, Windward Environmental, explained Windward is a small consulting company based in
Seattle with approximately 35 employees. She introduced the team, Ron Gouguet, Ty Do, Nina Moss and
Jena Ruben. Ms. Love reviewed:
Recap of our approach
o Six tasks that build on each other and close coordination with the City throughout the process
• Gather background information on buffers and ecological functions they provide
- Review of scientific literature and composition of a white paper to summarize and
synthesize that information.
- Mapping exercise to look at the width and conditions of existing, land usage and land
ownership of properties around the marsh to identify possibility for expanding
buffers or enhance the quality
■ Baseline monitoring study
■ Willow Creek Daylighting project impacts
o First three tasks provide information for following tasks:
• Maps and text specific to the Edmonds Marsh to include in the 2019 Shoreline Master
Plan update
• Vegetation enhancement project impacts and opportunities
• Long-term watershed management study planning/preparation for Edmonds Marsh and
its tributaries
Baseline monitoring study - data collection over one year to understand conditions of Marsh and
its buffer areas
o Monitoring work plan should:
■ Describe monitoring parameters and methods
• Be detailed yet straightforward and be easy to repeat
• Be efficient to implement in the field
o Physical parameters (will be tailored and honed based on discussions with City)
■ Water levels
• Water quality
• Soil characteristics (texture, infiltration rates, organic matter content, etc.)
o Biological parameters
■ Vegetation
• Phytoplankton
• Invertebrates
■ Birds and other wildlife
- Opportunity to enlist citizen scientists in collecting data
o Photo documentation
■ Photo points
■ Wildlife cameras
• Unmanned aerial vehicle photography
Use of field -collected data
o Quantitatively evaluate the baseline conditions of the marsh and its buffers
o Statistically evaluate the differences (or lack thereof) in areas with narrow vs. wide buffers
o Help identify ecosystem processes or resources of concern (e.g., a specific bird species)
o Help identify restoration goals
o Determine the suitability of existing habitat for different species
Willow Creek Daylighting Project Impacts
o Ecosystem services analysis - different types of models available
• Can be used to appraise changes in ecosystem service flows over time
• Can help document negative or positive impacts of different types of projects/changed on
marsh
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■ More accurate when based on quantitative data collected at site of interest
Example project:
o Wordard Bay Natural Resources Conservation Area (near Olympia)
■ 1300-acre site with upland and nearshore habitat
■ Managed by Washington Department of Natural Resources (WDNR)
• Historically a log dump for Weyerhaeuser
• Aerial map with historical overwater structures
o Restoration Feasibility Study
• Intended to inform WDNR of the benefits and impacts of a range of restoration
alternatives
■ Habitat equivalency analysis (HEA) model used to compare individual restoration actions
and alternatives
■ Restoration and cost information also included in the study to order to identify the
restoration alternative that would provide the most "bang for the buck."
o Referred to a table distributed to Council that includes scores for different restoration actions
Councilmember Johnson said one of the most important questions she wants answered is what is the
appropriate setback in Harbor Square, an urban area; the Port of Edmonds has one opinion and there are
various other opinions. Using the HEA score on the axis, she asked if it could be determined what species
would be affected by a 25-foot, 65-foot or 150-foot setback, how the setback for an urbanized area was
selected. Ms. Love said the answer to that question would not rely solely on the HEA model but different
information sources such as literature review that will identify information such as the area a bird species
needs for nesting and observations in the baseline study. HEA is a semi -quantitative tool to help
understand changes in ecosystem service flows based on an action. The inputs are over what area the
action is occurring, how the habitat suitability index changes based on the action, and how much time it
takes between the action and when the ecosystem service benefits are seen. She summarized it is a
complicated question and an overall complicated issue. The HEA model will assist in evaluating boosts in
ecosystem service functions by changing buffer widths.
Mr. Gouguet said HEA is an assessment and a summarization tool. Sampling different parameters with a
statistical design upfront that would sample at different intervals in different locations identified in survey
to determine if there are differences. It is currently not clear where the derivation of the current numbers
comes from. The idea would be to test them to determine what parameters may change which would drive
the change in suitability index and change in area and function and HEA would be used to determine the
amount or increase/decrease in ecological service.
Councilmember Johnson asked how whether or not the buffer is vegetated would be factored in. Mr.
Gouguet answered at this point data would be gathered to evaluate it in some statistical fashion.
Evaluation would occur at each location sampled such as slightly forested, the levy by the park and the
distance from that and putting that into a package of statistical tools to determine the affect and how
strong the effect is. That would begin to provide some indication that the quality of the buffer strip is as
important as the distance. Councilmember Johnson commented there are four different basic buffer types.
Councilmember Tibbott said he was most interested in accomplishing an excellent baseline study. He
asked how the existing data/information that has been compiled would be used and incorporated into the
study. Ms. Love answered part of the initial consultation with the City would be to ensure they understand
what existing data is available. They are aware of the study done by Western Washington University; the
intent would be to start with their research/information and ideas for study design as a basis for their own.
They would also use other information and as the workplan is developed, it can be tailored to incorporate
what exists. For example, if the City has 10 years of bird data, they want to use the same methods or visit
the same locations to gather data.
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November 14, 2017
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Councilmember Teitzel said his question is in regard to how the buffer relates to water quality. He asked
if it would be correct to say compared to a 150-foot wide buffer where the soil substrate is primarily clay,
a 100-foot buffer where the substrate is primarily sand and gravel may be as effective in filtering water
and protecting the quality of the marsh. Ms. Love answered yes, if he was referring specifically to
infiltration, 100 feet of sandy, gravelly, highly infiltrated soil versus clay.
Councilmember Buckshnis relayed the City received funding from WRIA 8 for 60% design of Willow
Creek and a tremendous amount of work has been done by Shannon Wilson including soil sampling and
water sampling which is available for this study. She pointed out the tide gate is now closed; information
from Shannon Wilson regarding data collected 2012-2014 states concern about flooding, etc. She asked
how Windward would deal with sampling when the gate is closed. Ms. Love asked if Councilmember
Buckshnis meant how the closing of the gate changed the conditions. Councilmember Buckshnis agreed it
changed the conditions in the fresh and saltwater marsh. She recalled Department of Ecology did
sampling in December and again later and then the person retired and did not finish his report. The pump
station will need to be completed before the tide gate can remain open all the time. Ms. Love observed the
operation of the tide gate will change after the pump station is installed. The water level data loggers may
be a good option to collect water level data as well as temperature and conductivity which allows
determination of salinity levels. It would be interesting to do that study before the pump station is
installed, before operation of the tide gate changes and before daylighting and to repeat it after the pump
station is installed to see how much further up the salinity will go, especially as stormwater flows are
reduced and there is less freshwater influx. Councilmember Buckshnis commented she was also
concerned because saltwater affects certain plants.
Councilmember Buckshnis said wildlife in the marsh is very important. The information Windward
provided did not key in specifically on wildlife, birds, and citizens that do birding. Ms. Love answered
they would be very enthusiastic about engaging citizen scientist and local birders in determining which
birds are using the marsh.
Councilmember Teitzel said it was important this be very rigorous scientific study. He asked how
observations from local bird amateurs that cannot be validated scientifically squared with conducting a
scientific study. Ms. Love answered a lot of birders are very good at what they do. They would likely
identify a group of individuals they were confident have the skills and ask them to commit to filling out
data sheets once a month for a year. She said local birders can provide some of the best information on
this topic; they know which birds are using the marsh. She noted bird calls can vary between cities; it is
beneficial to have local birders involved.
Councilmember Nelson emphasized the City was not looking for another study, they were looking for
something better, more comprehensive, based on the broad interests of the City, not something narrowly
tailored. Although there may be other studies out there, the desire is for this to be different for the City of
Edmonds.
Councilmember Tibbott said he was most interested in how Windward would extend the study into either
publications or documentation that could be read at a rudimentary level versus a scientific document. Ms.
Love said they would write a data report from baseline study. They try to make their documents relatively
user friendly and easy to read. They could also prepare a fact sheet or summary of the highlights for
distribution to the public. Councilmember Tibbott said that would be very important.
Councilmember Johnson asked if the City had to wait for the Unocal cleanup, which will take six years,
to improve marsh. Ms. Love answered she did not think so. She did not know all the details of the Unocal
site know other than there are issues with petroleum contamination, etc. She would need to review the
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November 14, 2017
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data to see how it may be affecting the marsh. Councilmember Johnson asked if the daylighting of
Willow Creek needed to wait until after the Unocal cleanup. Ms. Love said she would need to do further
research.
The Watershed Company & Herrera
Sarah Sandstrom, Project Manager, The Watershed Company, explained their presentation would
include the proposal submitted in response to the RFP and the additional year -long baseline study. The
strengths of their team are their ability to collect and synthesize data and translate it into policy
recommendations as well as their experience with SMP updates, water quality expertise and hydraulic
modeling. Their approach is focused on rational, reasonable and objective methods. She reviewed:
• Team Organization
o Sarah Sandstrom, Project Manager*
• Professional wetland scientist
• Certified fisheries biologist
Is 14 years' experience
Estuarian ecology
■ Technical basis for SMP and CAO updates
o Dan Nickel, Principle -in -Charge*
o Natural Resource Assessment
• Nell Lund, PWS
• Katy Crandall, WPIT
o Shoreline Planning
• Tess Brandon, AICP
o Hydrologic Assessment - Herrera
• Jeff Parsons, PhD, PE*
■ Matt Fontaine, PE*
■ Jose Carrasquero
* present today
o In addition to the team present, they are supported by a team of scientists including wetland
scientists, wildlife scientists, fisheries scientists as well as stormwater engineers and
geomorphologists and planners
o Watershed and Herrera have a history of working together
• Example: City of Bainbridge Island which has a similar focus on estuarian shoreline
Rational and reasonable approach
o Objective analysis (Tasks 1 and 2)
■ What are the specific functions of Edmonds Marsh and what buffer standards are
necessary to project functions?
o SMA and GMA (Task 3)
• What is the application legal/regulatory framework?
o Effects of changes to hydrology (Task 4)
■ What are the existing and projected conditions in the marsh
o Year -long baseline analysis (additional scope)
■ Vegetation
• Fish
• Wildlife
• Water quality
Objective Analysis of Science: Tasks 1 and 2
o Challenge:
• Wetland rating system falls short
o Approach
• Evaluate specific characteristics and functions
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November 14, 2017
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- Water quality
- Hydrology
- Fish and wildlife habitat
■ Clearly identify extent to which science informs policy
Example: Bellevue Shoreline Buffer Functions
o Function, characteristic, area of interest and impacts related to water quality, fish habitat and
wildlife habitat
• Used to build consensus in community to help Bellevue develop a policy that created a
debit/credit and reached Bellevue's objective, a tight nexus and proportionality between
impacts and mitigation
Approach: Edmonds Marsh
o Functions
• Water quality
• Fish habitat
■ Wildlife habitat
o Factors affecting functions
• How are functions protected or degraded?
o Area of interest
• What is the scale of influence of these factors?
o Current conditions
Harbor Square
■ Unocal
• Roads/railroad/marina
o 'Management recommendation
■ Protect
• Enhance
• Restore
Ms. Sandstrom reviewed the additional scope requested - baseline study
• Establish baseline conditions for future comparison of marsh rends
• Indications of sources of impairment
• Scalable/A la carte
• Not essential for science -based buffer policies
• Baseline study include:
o Vegetation mapping
o Fish - salmon use during rearing period
o Birds - monthly point sampling
o Water quality - stormwater quality sampling
Matt Fontaine, Stormwater Lead, Herrera, reviewed:
• His background
o Professional engineer
0 15 years' experience in stormwater planning, monitoring and design
o Edmonds CIP lead
o Stormwater audits, manuals, code, retrofits, and plans
• Water Quality - Additional Scope Baseline Study
o Sampling at 2 tributaries, 1 outfall, outlet of marsh
o Storm events and base flow conditions
o Identify major sources of pollutants
o Establish baseline water quality conditions
o Inform targeted policies or prioritize actions to protect and improve water quality
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November 14, 2017
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o Baseline study will set up City for grant opportunities
Jeff Parsons, Coastal Scientist, Herrera, reviewed:
His background
o Professional engineer
0 19+ years' experience, estuarine geomorphology, tidal hydraulics
o Experience with City models, including Dayton Street and SR 104
Understanding of Local Water Quality and Hydrology — Task 4
o Willow Creek daylighting
• Anticipated tidal changes
• Water quality is influenced by the size, tidal exchange and freshwater inputs
o Understanding of drainage issues and available models
o Quantify physical context4ecological functions 4 SMA/GMA policy
• Established working relationship with Watershed
Dan Nickel, Principal -in -Charge, The Watershed Company, reviewed:
• His background
o Shoreline planner
0 16+ years' experience, shoreline function/land use analysis
0 40+ SMPs
o 20+ CAOs, including BAS
SMP and GMA Planning Context — Task 3
o Extensive SMP and GMA experience
• City of Bainbridge Island
■ Kitsap County
• Pacific County
• San Juan County
• Skagit County
• Grays Harbor County and Cities
o Collaboration with Ports, WSDOT, BNSF
• Ports of Longview/Kalama
o Avoid potential conflicts between SMP and CAO
o "No net loss" consideration
Ms. Sandstrom emphasized the strengths the team brings to the project, include their ability to take the
science, synthesize the literature that has already been collected as well as collecting their own data and
incorporating it into policy recommendations as well as a strong basis in water quality monitoring,
hydraulic modeling and SMP updates.
Councilmember Nelson appreciated the use of Bellevue as an example, because one would think
Edmonds was the only city with problems with their SMP when in fact it happens all over the state. He
referred to the use of the term "scientifically defensible" during the presentation and was curious why that
term was used. He viewed the study as something that would enlighten and inform, not necessarily
something that would be defended. Ms. Sandstrom answered defensible is related to the SMP and the
contentious mature that can arise especially if the intent is to support a specific policy. To inform a
specific policy recommendation, it is important that the City not make leaps of judgment that may be
based on science but are not clearly supported/defended by scientific information.
Councilmember Teitzel said his question is regarding buffer width and quality as it relates to water
quality. As a non-scientist, he surmised a buffer of 150 feet for example that the substrate consists largely
of clay where water does not percolate well, that a 100-foot buffer that is primarily gravel and sand may
Edmonds City Council Approved Minutes
November 14, 2017
Page 8
be as effective. Ms. Sandstrom said she was uncertain the specific numbers were correct, but the soil
substrate does play a role in the effectiveness of buffers in filtering water quality.
Councilmember Tibbott said he attended the first presentation where the team did a great job presenting
how they would use existing data. He inquired about the data collection method during the year -long
study, specifically the intervals, how data would be collected and what portion would be repeatable in the
future. Ms. Sandstrom responded their goal was for the entire study to be repeatable. Vegetation mapping
would be done once during the summer growing season. Vegetation mapping could be used to identify
how marsh changes, such as changes to hydrology, may affect marsh communities. Fish sampling would
be done during the spring months, January to June ideally, in different regions of the marsh to look at the
distribution of fish species using the marsh especially salmonids and whether any juvenile salmon are
entering the marsh or only from hatchery production. Bird studies would be monthly, with point survey
locations throughout the marsh at specific locations.
Mr. Fontaine said water quality monitoring would be done in four locations — the two creek inlets, the
outfall and the outlet of the marsh. Sampling would be done during 12 storm events over the year as well
as 3 base flow events. The sampling methodology would include installing a sampling device at the
collection point to collect a set of continuous samples throughout the storm, so the sample is not biased by
the event and will provide a sample representative of the storm. That is the standard in the region and
produces very good, reliable results. Statistics would then be run on the results of the sampling.
Councilmember Buckshnis commented WRIA 8 has funded 60% design of the Willow Creek daylighting
but the project will be delayed until the Unocal cleanup is complete. The tide gate is now closed. Salinity
data from high tide events is available from a Department of Ecology person who retired before a report
was completed. She asked how the difference in salinity cause by the closure of the tide gate would be
addressed. She noted high tide events are not really high tide with the gate closed. With regard to
stormwater, during heavy rainfall culverts on SR-104 drain directly into the marsh. She asked how those
issues would be addressed. Mr. Parsons said that would be addressed via the hydrologic model; it is
common to model gates by calibrating and running the model with the gate closed with a leakage factor
and then running the model with the gate open. Ms. Sandstrom added during the year -long study, the
condition of the gate would need to be acknowledged as it could influence fish presence in the marsh.
Councilmember Johnson recalled mention of having the Ports at the table as part of the negotiating
process during SMP updates. Edmonds did not take that approach; in fact, the Port wanted a 25-foot
setback and the City chose a 115-foot buffer and a 10-foot setback for a total of 125 feet. She asked how
that would be negotiated if the Port had been at the table. Mr. Nickel answered every jurisdiction is
different especially with different types of ports and their activities. He cited Cowlitz County as well as
Klickitat County as examples. Understanding the scientific principles surrounding an approach to buffer
and setback would be the basis of the discussion. From that understanding, the decision makers have the
ability to discuss an appropriate approach. For this project, their role is to understand that basic scientific
understanding.
Councilmember Johnson said this is the first time the SMP has identified the Marsh. Harbor Square, a
highly developed area, has a built environment where the buffer could be. She asked how that would be
evaluated. Ms. Sandstrom answered reviewing the literature would be important to understand potential
factors that are degrading the marsh and what is needed to prevent ongoing degradation and also to
enhance the marsh, essentially protection and enhancement. The year -long study won't necessarily say
what the improved condition outcome will be but it will be factored by reviewing the literature and
combining it with current conditions.
Council President Mesaros advised the Council would take action at next week's council meeting.
Edmonds City Council Approved Minutes
November 14, 2017
Page 9
3. 2018 BUDGET PRESENTATIONS
Economic Develol2ment/Community Services
Economic Development/Community Services Director Patrick Doherty reviewed:
• 2017 Accomplishments
o Community Services
■ Worked with Diversity Commission on ambitious Work Plan including Youth Forum,
World Cafe, Fourth of July parade, film series, grants program, incident responses,
development of work plan, etc.
• Together with services of Carolyn Douglas as part-time public information officer/press
relations coordinator, we have created a substantial, continuous public/media presence
leading to regional press coverage, increased and regular social media activity, etc.
■ Managed lobbying efforts in Olympia and DC on behalf of Edmonds interests —both
legislative and funding
■ Collaborated with Public Works and our Olympia lobbyist in successfully securing funds
for Phase II of the Edmonds Street Waterfront Connector project, and $1M for Highway
99
■ Together with Public Works and Parks, completed Downtown Restroom project
• Collaborated on Sustainable Cities Initiative projects (41h Avenue Arts Corridor, Green
Business, Mobile App)
o Economic Development
• Launched new tourism website and promoted greater use and visibility of the
arts/culture/events calendar
• Enhanced tourism -promotional ad presence in the region —radio, print, digital —including
largest -ever campaign for 2017 holiday season, in conjunction with Ed!
• Collaborated with Port of Edmonds on digital ad campaign targeted for Denver metro
next Spring, using whale -watching at the "hook" to drive visitors to Seattle/Edmonds
(Port of Seattle grant + local monies)
■ Initiated third season of Holiday Market
• Together with Ed! have created substantially enhanced Holiday offerings/activities
including holiday market, trolley, caroling contest, jazz/brass ensemble performances,
dedicated holiday website, etc.
• Provided more enhanced business -attraction advertising throughout region (Seattle
Business magazine, Daily Journal of Commerce, 425 Business magazine, and KNOW
radio)
• Provided home -based business and small-business seminars, with multiple agency
partners
• Provided support to property owners and/or architects & developers on potential
redevelopment projects, such as downtown hotel, Highway 99 area projects, etc.
• Convened ad hoc Downtown parking committee late 2016, leading to parking
enhancements in early 2017
• Hosted Highway 99 Redevelopment Forum
• Provided support to Economic Development Commission, including assistance with
research, consideration and memos on such issues as:
- Civic Park Master Plan, Highway 99 Subarea Plan, Affordable Housing, BD1 First
Floor Height, Potential for City Facilities, etc.
■ Worked with Snohomish Co. Small Business Development Center to hire new staff, bring
office hours to Edmonds, collaborate on initiatives
• 2018 Challenges
o Community Services
Edmonds City Council Approved Minutes
November 14, 2017
Page 10
• Pursue Legislative agenda items, including future funding commitment for Edmonds
Street Waterfront Connector to help leverage federal grant funding
• Support the Diversity Commission and its 2018 Work Plan
• Expand and enhance public outreach, communications and engagement efforts
o Economic Development
• Support property owners in Downtown, Westgate, Hwy 99, and other business districts to
assist with appropriate redevelopment
• Continue to seek hotel for Downtown
• Enhanced and expanded business -attraction advertising, including potentially foreign
appeal in concert with EASC
■ Recruitment of new business/investment and retention/expansion of existing business
• Pursue greater tourism -promotion opportunities (including new initiative with Port in
Denver metro)
Expenditures
Expenditures
2017
Approved
2017 YE
2018 Recmd
% Change
Budget
Estimate
Budget
'
Comm. Services
$471,503
$475,720
$490,751
4%
Economic Dev
$105,200
$104,920
$92,710
-12%
Total
$576,730
$580,640
$583,461
1%
Decision Packages
o Community Services
■ DP #14-$72,000 for federal lobbyist/strategist
• DP #15-$6,000 for Diversity Commission contracted staff services
• DP #16—$5,500 for Diversity Commission program support (increase of $1,500)
o Economic Development
■ No decision packages
LTAC Tourism Promotion Program
• Lodging tax revenues are used to fund the City's Tourism Promotion Program Only permissible
use of these funds per RCW
• Revenues projected for 2018 are $115,000 (down slightly from 2017)
• City's Tourism Promotion Program consists o£
o Support and promotion of arts, culture and other events that attract visitors (25%)
o General Marketing and promotion (ads, website, rack cards, etc.) (75%)
Proposed 2017 Tourism Promotion Program — Use of Funds
o Arts/Culture-related (25% of revenue):
• $21.000 Arts Commission grants for tourism -promotion:
$2,000 —Cascade Symphony
$2,600 —Olympic Ballet Theater
$1,200 —Art Studio Tour
$2,400 —Driftwood Players
$1,500 —Sno-King Chorale
$2,000 —Art Walk
$2,500—DeMiero Jazz Fest
$2,200 —Jazz Connection
$500—Edmonds Arts Festival
$2,500—Cascadia Art Museum
$1,600 —Phoenix Theater
■ $8.500 in Arts Commission DI-oLY1-] M expenditures:
I $7,500 —Write on the Sound 1 $1,000—Public art brochure i
• Decision Package
o DP #49: General tourism promotion (75%):
■ Professional Services
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November 14, 2017
Page 11
- $8,000 -Printing/distribution of rack card
- $1,500 -Promotion/support of Bird Fest
- $6,400 -Support of Snohomish Co. Tourism Bureau
- $2,500 -Edmonds Visitors Center
- $20,000 -Contracted staff support for tourism promotion/website/arts-events
calendar
- $2,400 -Website hosting, technical support
■ Advertising
- $30,000 -General advertising
- $12,500 -Advertising in ECA Season Brochure
■ Miscellaneous
- $250 -Miscellaneous, inclad design work, photography
■ Interfund Transfer
- $4,000 -Promotion of Edmonds arts/culture events in Snohomish County Visitors
Guide, CRAZE recreation guide and "Arts Access" (Snohomish Countywide)
TOTAL-$87,550
■ One-time expenditures from fund balance:
- $1,000 -Enhanced advertising for 2017 Waterfront Festival grant
- $1,000 -Enhanced advertising for 2017 Chamber Chowder Cook -Off
- $1,000 -Taste of Edmonds advertising
TOTAL-$3,000
Councilmember Johnson asked about the Highway 99 Redevelopment Forum. Mr. Doherty explained a
forum was held this fall; 250 invites were sent to development firms, architectural firms, real estate
agents, anyone interest in redevelopment, and property owners who participated in the process. The forum
included a presentation about the work that has been done to implement the Highway 99 plan. Although
there was not a large crowd, some property owners and developers met afterwards.
Councilmember Teitzel commented the Visit Edmonds website looks great and he was aware the
Edmonds Downtown Alliance has developed their own website. He asked how those websites work in
harmony and how they conflict. Mr. Doherty said they are definitely not in conflict; one of the ways they
work in harmony is when visiting Shop Edmonds on the new tourism website, there is a link to the
Edmonds Downtown (Ed!) website for detailed information about downtown. The Visit Edmonds website
also provides the information, so a user is not required to go to another website. This may be redundant
but from a users' perspective, the more ways they can get information the better and it avoids redirecting
them to another website.
Councilmember Tibbott assumed tourism expenditures were revenue neutral based on the funds generated
by lodging taxes. Mr. Doherty said the $87,000 in expenditures fully utilizes revenue projections and the
additional $3,000 is from the fund balance.
Councilmember Buckshnis said she has been concentrating on professional services in the budget and
inquired about the reduction in professional services. Mr. Doherty responded the Economic Development
2018 Recommended Budget is lower than 2017 due to the Economic Impact of the Arts Study in 2017,
support for Bird Fest and expenses related to the holiday market. The holiday market and Bird Fest were
removed from the ongoing budget; if additional funds are necessary, a budget amendment will be
requested. The $72,000 for federal lobbyist/strategist is presented as a decision package. If a decision is
made to have that be an ongoing expense, it will be included in the budget in the future; otherwise it will
be proposed as a decision package.
Clerk's Office
Edmonds City Council Approved Minutes
November 14, 2017
Page 12
Assistant Finance Director Dave Turley reviewed:
• City Clerk Programs
0 5 FTEs — Administrative, Legislative and Technical Support
o City Hall Front Desk/Reception
o Business Licensing/Special Events/ Parking Permits
o Records Management
o Public Records Requests
o City Council Agenda and Meeting Management Support
• Expenditures
2017
2017 YE
2018
Expenditures
Budget
Estimate
Recomm.
Discussion
Total
$571,620
$650,180
$694,248
2018 estimate includes
Decision Packages #1 and #2
• Decision Packages:
o DP # 1: Increase in IT service rate
o DP#2: $6,100 for Public Records Request software for the Police Department. The Police
Department had existing resources in their 2017 budget to acquire the software, so this DP
represents ongoing costs to maintain the software.
Councilmember Teitzel referred to page 43 of the budget book, observing the percentage increase for
benefits was double the rate of increase for benefits in Administration. Finance Director Scott James
responded a staff member elected to add benefits; that is the majority of the increase in 2017 and also
flows in 2018.
Mayor's Office
Mr. James reviewed:
2017 Accomplishments
o Renegotiated Fire District 1 contract
o Olympia success
• $700,000 to move Edmonds Street Waterfront Connector project forward
■ With impending Capital Budget passage
■ $391,000 Frances Anderson roof
• $500,000 for Waterfront project
■ $100,000 for Hwy 99
o Total Parks, Public Works & Engineering grants-$8,305,699
o Operating revenues are $325,000 higher than 2016
o Maintained strong financial strength
o Successful conclusion of Police labor negotiations
o Road surfacing of 8.6 lane miles
■ Since started repaving program in 2014, have paved approximately 30 lane miles
Grant Revenues 2013-2017
0 2013: $2,085,121
0 2014: $3,920,991
0 2015: $7,163,929
0 2016: $5,230,833
0 2017: $8,305,699
Challenges
o Maintain Edmonds long-term financial strength
o Continue progress on major projects
o Waterfront Access projects and Highway 99
o Funding for Civic Park
Edmonds City Council Approved Minutes
November 14, 2017
Page 13
o Continue progress on infrastructure needs such as: road resurfacing and water, sewer and
stormwater projects
o Continue seeking grants
o Conclusion of three labor group negotiations
• Fxnnnrlifinreq
Expenditures
2017
2017 YE
2018
Discussion
Budget
Estimate
Recomm.
Total
$276,700
$276,900
$297,088
Councilmember Johnson asked the amount of additional revenue in 2017. Mr. James answered operating
revenues are $325,000 higher.
Councilmember Teitzel referred to $391,000 allocated in the State's capital budget for the Frances
Anderson Center roof repair and asked if that amount will entirely repair the roof. Public Works Director
Phil Williams said that will cover the entire repair which will be done in 2018.
Councilmember Buckshnis commented professional services are $1.4M under budget compared to last
year.
City Council
Mr. James reviewed:
• Expenditures
Expenditures
2017
2017 YE
2018
Discussion
Budget
Estimate
Recomm.
Salary increase for Legislative
Assistant and Councilmembers and
Total
376,120
377,800
405,919
increase in non -departmental for new
phone system
Councilmember Johnson asked if the Council budget included a training and travel budget. Mr. James
said the budget for training and travel was unchanged from 2017.
Finance & Information Services Department
Mr. James reviewed:
• 2017 Accomplishments
o Received GFOA's Certificate of Achievement for Excellence in Financial Reporting for
Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2015
o Received A Clean Audit for 2016
o Submitted 2016 CAFR to GFOA
o Assistant Finance Director, Dave Turley completed the City's First PAFR
o Investment earnings
■ 2013: $74,830
■ 2014: $163,214
• 2015: $335,926
2016: 423,816
■ 10/31/2017: $579,799
• Challenges
o Develop Long-range Financial Plans
o Review Financial Polices
• Expenditures
Edmonds City Council Approved Minutes
November 14, 2017
Page 14
2017
2017 YE
2018
Expenditures
Discussion
Bud et
Estimate
Recomm.
Total
$1,049,560
$1,046,710
$1,237,786
New staff member
Decision Package
o DP #8: Senior Accountant - $132,030
■ Graph of new pronouncements 1989-2019
• Bar graph of 5-year average annual new pronouncements
Councilmember Buckshnis expressed support for the senior accountant position, recalling the Finance
Committee wanted to add the position in June because grant billings are not being done timely.
Information Services
IT Supervisor Brian Tuley reviewed:
• Expenditures
Expenditures
2017
2017 YE
2018
Discussion
Budget
Estimate
Recomm.
Total
$890,430
$889,890
$1,135,113
DP 13, 119, 120 and 121
Decision Packages
o DP #13: ($1,040) change in equipment rental rate
o DP #119: $18,800 Hardware & Software maintenance
o DP #120: $253,000 phone system replacement
o DP # 121: $24,000 Server memory upgrade
o $56,000 was in IT Capital Fund, but was reset at beginning of budget process. This decreases
fund balance. Move to small equipment account from capital account
Graph of B Fund Balance 2017-2024
Councilmember Tibbott relayed his understanding that the Information Services Department picks up the
lion's share of software subscription. Mr. Tuley responded for software that requires a desktop license, IT
likes to be the keeper of the licenses to ensure they are not under -allocated, over -used, over -installed.
There are a lot of hosted applications where departments buy their software in the Cloud and the
departments manage that as long as it is compatible.
Councilmember Tibbott commented that seems to be a growing area of the budget, for example
information management for the Police Department cost $6,000. He asked if those costs were projected to
continue increasing and if so, did it relate to saving in other areas of the budget. Mr. Tuley did not see it
continuing. The phone system is a one-time purchase and the allocation drops significantly in 2019 to
only maintenance. Councilmember Tibbott asked if the cost for subscription services would continue to
increase, especially software subscriptions. Mr. Tuley said that will increase over time. For example, the
City is running Microsoft Exchange 2010; Microsoft is ending support and upgrade patches in 2020.
During 2018/2019 decisions will need to be made regarding a replacement. Councilmember Tibbott asked
whether investing in software provided any savings to the City. Mr. Tuley said it was difficult to say, they
are necessary for business. Anecdotally, when he got into IT in the early 1990s, Microsoft Office Suite
was $87; it is 10 times that now. Software in the Cloud has value add but it is more expensive.
Councilmember Buckshnis observed the phone system would be under small equipment as a one-time
purchase and asked if it would be depreciated. Mr. James answered it would be capitalized and
depreciated over 10 years.
Non -Departmental
Mr. James reviewed:
Edmonds City Council Approved Minutes
November 14, 2017
Page 15
• Purpose
o Used to segregate all costs not directly identifiable to departments and those expenditures and
services that are required by law or contract that are beneficial to all citizens
• The Finance Department provides oversight to the Non -Departmental budget
• Key Non -Departmental Expenditures
Expenditures
2017
2017 YE
2018
Discussion
Budget
Estimate
Recomm.
Liability &
609,550
624,530
624,530
Small increase
Property Ins
Fire District
7,713,000
7,906,390
7,678,200
Approx 3.7% increase
Contract
Prisoner Care
630,000
600,000
620,000
Booking & housing
SNOCOM
1,028,700
977,270
1,026,130
Approx 4.8% increase
Debt service
40,080
40,080
21,660
Small reduction
Interfund
1,065,200
1,065,200
1,209,370
Review later
transfers
Other ND
1,588,915
1,406,210
2,460,557
Contact with questions
expenditures
Total
$12,665,445
$12,619,680
$13,640,447
Fire District 2018 Contract
o Estimate City will pay Fire District 1 $7,378,718 for 2017 services
0 2017 Total Paid to FD1 is estimated $7,906,390
o The 2018 Proposed Budget includes a base payment of $7,678,390, a 4.1% increase for
services
Primary budget changes include:
o $250,000 -Council Contingency to fund Council priorities
o DP 410: ($76,210)
o DP #66: $300,000 for Street Preservation
o Transfer $760,000 to the Contingency Fund Reserves
o Reserving $2 million for Civic Field
Other Finance Managed Funds
o Finance is responsible for the budgets of several other small funds:
o LEOFF Medical
o Risk Management
o Contingency Reserve
o Employee Parking
o LID and Debt Service Funds
o Fireman's Pension
Council President Mesaros referred to the 2018 SNOCOM allocation, pointing out it is less than budgeted
for 2017. He anticipated a significant reduction in 2019 after the first full year of the SNOCOM/SNOPAC
merger if that is approved by the various jurisdictions.
Councilmember Johnson referred to Other ND Expenditures which increased by $1M in 2018 and asked
about the increase. Mr. James referred to page 55 of the budget book; highlighting expenditures such as
$250,000 for Council Contingency, $300,000 for street paving, $760,000 transfer to the Contingency
Reserve, $15,000 in insurance increases, and $4800 for ESCA/SERS.
Councilmember Teitzel recalled there was a Council Contingency budget in 2017 of approximately
$30,000. Mr. James commented the $250,000 Council Contingency in ND is for Council allocations. He
said Councilmember Teitzel may be referring to the Council Contingency within the Council's budget,
Edmonds City Council Approved Minutes
November 14, 2017
Page 16
Expenditures
2017
2017 YE
2018
Discussion
Budget
$1,049,560
Estimate
$1,046,710
Recomm.
Total
$1,237,786
New staff member
• Decision Package
o DP #8: Senior Accountant - $132,030
Graph of new pronouncements 1989-2019
■ Bar graph of 5-year average annual new pronouncements
Councilmember Buckshnis expressed support for the senior accountant position, recalling the Finance
Committee wanted to add the position in June because grant billings are not being done timely.
Information Services
IT Supervisor Brian Tuley reviewed:
• Expenditures
2017
2017 YE
2018
Expenditures
Budget
Estimate
Recomm.
Discussion
Total
$890,430
$889,890
$1,135,113
DP 13, 119, 120 and 121
Decision Packages
o DP # 13: ($1,040) change in equipment rental rate
o DP 4119: $18,800 Hardware & Software maintenance
o DP #120: $253,000 phone system replacement
o DP 4121: $24,000 Server memory upgrade
o $56,000 was in IT Capital Fund, but was reset at beginning of budget process. This decreases
fund balance. Move to small equipment account from capital account
Graph of B Fund Balance 2017-2024
Councilmember Tibbott relayed his understanding that the Information Services Department picks up the
lion's share of software subscription. Mr. Tuley responded for software that requires a desktop license, IT
likes to be the keeper of the licenses to ensure they are not under -allocated, over -used, over -installed.
There are a lot of hosted applications where departments buy their software in the Cloud and the
departments manage that as long as it is compatible.
Councilmember Tibbott commented that seems to be a growing area of the budget, for example
information management for the Police Department cost $6,000. He asked if those costs were projected to
continue increasing and if so, did it relate to saving in other areas of the budget. Mr. Tuley did not see it
continuing. The phone system is a one-time purchase and the allocation drops significantly in 2019 to
only maintenance. Councilmember Tibbott asked if the cost for subscription services would continue to
increase, especially software subscriptions. Mr. Tuley said that will increase over time. For example, the
City is running Microsoft Exchange 2010; Microsoft is ending support and upgrade patches in 2020.
During 2018/2019 decisions will need to be made regarding a replacement. Councilmember Tibbott asked
whether investing in software provided any savings to the City. Mr. Tuley said it was difficult to say, they
are necessary for business. Anecdotally, when he got into IT in the early 1990s, Microsoft Office Suite
was $87; it is 10 times that now. Software in the Cloud has value add but it is more expensive.
Councilmember Buckshnis observed the phone system would be under small equipment as a one-time
purchase and asked if it would be depreciated. Mr. James answered it would be capitalized and
depreciated over 10 years.
Non -Departmental
Mr. James reviewed:
Edmonds City Council Approved Minutes
November 14, 2017
Page 15
• Purpose
o Used to segregate all costs not directly identifiable to departments and those expenditures and
services that are required by law or contract that are beneficial to all citizens
■ The Finance Department provides oversight to the Non -Departmental budget
• Ke:v Non -Departmental Expenditures
Expenditures
2017
2017 YE
2018
Discussion
Budget
Estimate
Recomm.
Liability &
609,550
624,530
624,530
Small increase
Property Ins
Fire District
7,713,000
7,906,390
7,678,200
Approx 3.7% increase
Contract
Prisoner Care
630,000
600,000
620,000
Booking & housing
SNOCOM
1,028,700
977,270
1,026,130
A rox 4.8% increase
Debt service
40,080
40,080
21,660
Small reduction
Interfund
1,065,200
1,065,200
1,209,370
Review later
transfers
Other ND
1,588,915
1,406,210
2,460,557
Contact with questions
expenditures
_
$12,619,680
Total
$12,665,445
$13,640,447
f
Fire District 2018 Contract
o Estimate City will pay Fire District 1 $7,378,718 for 2017 services
0 2017 Total Paid to FD1 is estimated $7,906,390
o The 2018 Proposed Budget includes a base payment of $7,678,390, a 4.1 % increase for
services
Primary budget changes include:
o $250,000 —Council Contingency to fund Council priorities
o DP #10: ($76,210)
o DP #66: $300,000 for Street Preservation
o Transfer $760,000 to the Contingency Fund Reserves
o Reserving $2 million for Civic Field
Other Finance Managed Funds
o Finance is responsible for the budgets of several other small funds:
o LEOFF Medical
o Risk Management
o Contingency Reserve
o Employee Parking
o LID and Debt Service Funds
o Fireman's Pension
Council President Mesaros referred to the 2018 SNOCOM allocation, pointing out it is less than budgeted
for 2017. He anticipated a significant reduction in 2019 after the first full year of the SNOCOM/SNOPAC
merger if that is approved by the various jurisdictions.
Councilmember Johnson referred to Other ND Expenditures which increased by $1M in 2018 and asked
about the increase. Mr. James referred to page 55 of the budget book; highlighting expenditures such as
$250,000 for Council Contingency, $300,000 for street paving, $760,000 transfer to the Contingency
Reserve, $15,000 in insurance increases, and $4800 for ESCA/SERS.
Councilmember Teitzel recalled there was a Council Contingency budget in 2017 of approximately
$30,000. Mr. James commented the $250,000 Council Contingency in ND is for Council allocations. He
said Councilmember Teitzel may be referring to the Council Contingency within the Council's budget,
Edmonds City Council Approved Minutes
November 14, 2017
Page 16
page 35 of the budget book, which is $25,000. The 2017 Council Contingency in Non -Departmental was
$100,000 and was increased to $250,000 in 2018.
Councilmember Buckshnis asked what percentage the transfer into the Contingency Reserve Fund would
bring it to. Mr. James answered 16.1%. Councilmember Buckshnis said the ordinance does not specify
an amount; 16% is at the high end of the recommendation in the policy.
Councilmember Buckshnis referred to the ECA Contingency Reserve which was reduced from $90,000 to
$80,000 and said she was told at a Finance Committee meeting they would only need $60,000 in 2018.
Mr. James said the budget for 2017 was $135,000 which was reduced to $80,000. The reduction to
$60,000 in 2018 may have come up after the budget was prepared. Amendments to the 2018 budget will
be presented next week.
2018 Budget Revenue Sources
Mr. James reviewed:
• Context
o The economic prospect for Edmonds will continue to be strong, barring some major incident
0 2018 operating revenues see only 0.5% growth over 2017
o Increasing property values
o Future budgets may become more challenging as revenue growth slows
o City will have to look for either new on -going revenues or on -going expenditure savings
Economic Environment
o The Puget Sound economy continues to be one of the healthiest in the country
o Home values continue to increase and housing sales remain healthy
o For 2018, we anticipate modest growth now and moderating further over the next few years
o Seattle marks a full year as America's hottest housing market, with no end in sight
■ Seattle tops the nation in home -price growth
- Seattle area: 13.2%
- National: 6.1 %
• Graph of Unemployment Rates January — July 2018 for greater Seattle, Washington and United
States
■ Map of Washington Unemployment by county September 2017
o King
o Snohomish County
• Graph of Revenue Trends Analysis — Comparison of Revenues by Type — All Funds, FY 2014 —
FY 2018
• Revenues Trend Analysis — All Funds
■ Revenues by Type
o Taxes: 39.65%
o Licenses and Permits: 2.8%
o Intergovernmental: 7.31%
o Charges for Services: 39.52%
o Fines and Penalties: 0.53%
o Miscellaneous: 4.53%
o Transfers — in: 5.66%
Expenditure Comparison (All funds)
Expenditures by Type (All funds)
o Salaries and Benefits: 31.97%
o Supplies: 4.74%
o Other services and Charges: 19.79%
o Intergovernmental:13.69%
Edmonds City Council Approved Minutes
November 14, 2017
Page 17
o Capital Outlays:19.91%
o Debt Service: 4.88%
o Transfers -out: 5.01 %
• 2017 — 2018 Comparison — General Fund Revenues
0 2018 General Fund revenue estimates are projected to increase by 0.5% over 2017
o Chart of Comparison of Revenues by Type - General Fund, FY 2014-FY 2018
o Revenues Trend Analysis — General Fund
o General Fund Key Revenues
Revenue
2017 YE
Estimate
2018 Proposed
Variance
%
Discussion
Pro e Tax
10,208,550
10,376,860
159,310
1.6%
Includes 1% increase
EMS Levy Tax
3,950,000
4,027,540
77,540
2%
Includes 1% increase
Sales Tax
1 7,300,000 1
7,275,000
25,000
-0.3%
Tax growth stabilizing
Property Tax Revenues Comparison 2010 to 2018
Graph of Sales Tax Revenues 2008-2018
General Fund Expenditures
o Non -Departmental: $13,640,447
o Municipal Court: $1,105,852
o City Council: $405,919
o Police: $11,173,866
o Community Services/Economic Dev: $583,461
o Development Services: $2,902,901
o Human Resources: $467,314
o Parks & Recreation: $4,356,100
o Public Works: $514,048
o Facilities Maintenance: $2,140,163
o Engineering: $2,729,854
o Mayor's Office: $297,088
o City Clerk: $694,248
o City Attorney: $847,480
o Finance: $1,237,786
Graph of REET Revenues 2014-2018 Budget
0 2014: $1,866,320
0 2015: $2,743,380
0 2016: $2,588,124
0 2017 YE Est: $2,860,000
0 2018 Budget: $2,800,000
Councilmember Teitzel referred to the chart on unemployment rates, recalling before the Great
Recession, unemployment rates were quite low, in the 4% range, and asked if this could be an indicator of
an economic downturn in the future. Mr. James referred to how fast the unemployment rate increased
during the Great Recession; this cycle of the recovery is longer and slower and much more methodical
which indicates it will be longer lived, leading him to believe there are a couple years left of a relative
strong economy in the area. He referred to the slight increase in unemployment in April 2017,
commenting that was not a sign that economic recovery was at an end. He pointed out the 13.2% increase
in Seattle area housing prices, companies like Amazon are bringing in new employees, Boeing's new
airplane orders which will increase employment in Everett, etc. Councilmember Teitzel said if there are
2-3 good years of economic recovery left before a downturn, now was the time to buttress reserves as
hedge against a downturn. Mr. James pointed out Mayor Earling included $760,000 in the budget for that
reason.
Edmonds City Council Approved Minutes
November 14, 2017
Page 18
Council President Mesaros referred to the General Fund expenditures pie chart, commenting the FD1
contract was included in Non -Departmental. For the future, he suggested identifying that separately in the
pie chart so that citizens can see the amount the City pays for fire services.
Councilmember Nelson referred to the Revenue Trend Analysis bar chart and suggested using colors
instead of patterns. He referred to Fines and Penalties which was down $100,000 and asked if that was
due to a decline in enforcement or more law-abiding citizens. Mr. James said revenues declines of this
magnitude raise a concern for him; in discussion with Judge Coburn, turnover in police officers has
resulted in fewer tickets issued and less for the court to prosecute. That is the biggest contributor to
declining Fines and Forfeiture revenues.
Councilmember Buckshnis referred to Ordinance 3891 which identifies two reserve funds 010 Reserve
Fund and 011 Risk Management Reserve Fund. In the budget book, the funds are 12 and 11. She asked if
the combined total of $7.1 million was 16.1% or was $900,000 excluded. She recalled the Council -
approved policy was 8-16%. Mr. James referred to page 58 of the budget book which provides details on
the Contingency Reserve Fund. Councilmember Buckshnis suggested updating Ordinance 3891 as it does
not identify Fund 12. Mr. James said Long Range Financial Planning (LRFP) has been reviewing the
reserve policies and plans to propose an amendment in the first quarter. Councilmember Buckshnis said
this is a Council directed action not LRFP which includes citizens. Mr. James said LRFP is not making
the policy, it is reviewing policies and bringing them to Council for review and adoption. The current
policy is based on General Fund revenues. Councilmember Buckshnis reiterated Ordinance 3891 refers to
reserve funds 010 and 011, Fund 12 to which $760,000 was added creating a balance of $6.9 million is
not listed in the ordinance. Mr. James said LRFP plans to present an amendment to the Finance
Committee and then to Council. Councilmember Buckshnis offered to email Mr. James her question
about what the 16.1 % was based on.
6. PUBLIC HEARINGS
1. PUBLIC HEARING ON THE PROPOSED 2018 BUDGET
Mr. James recommended the Council open the public hearing, accept public comment, continue the
hearing to next week, take public comment next week, close the public hearing and then deliberate.
Mayor Earling opened the public hearing and the public participation portion of the public hearing.
Joe Scordino, Edmonds, thanked the Council for their support of the Students Savings Salmon Stream
Team and including funds in the 2018 budget. Those funds allow students to remain engaged and
collecting scientific data in the field that will contribute to the City's processes including the marsh study.
The students have a great set of data they can provide to researchers that will complement their work.
Mayor Earling continued the public hearing to the next Council meeting.
2. 2018 PUBLIC HEARING ON THE 2018 PROPERTY TAX ORDINANCE
Mr. James recommended the Council open the public hearing, accept public comment, close the public
hearing and deliberate. Councilmember Johnson voiced her preference to make a decision next week.
Council President Mesaros clarified the Council would deliberate following the public hearing and take
action on the ordinance next week.
Finance Director Scott James reviewed:
• 2018 Budget Includes 1% Property Tax Increase
Edmonds City Council Approved Minutes
November 14, 2017
Page 19
o Assessor Shows City of Edmonds Assessed Values Increasing 11. 1 %(Increase in AV before
adding in new construction)
o New Construction adds $38,266,907 Assessed Value
2018 Regular Property Tax Calculation for the City of Edmonds
Description
Amount
2017 Levy Amount
$10,218,549
Add New Construction
$47,819
Add Allowance for Adjustments
$10,372
2018 Starting Point
$10,276,740
Add 1 % of 2017 Lew
1 $102,190
Total 2018 Le
$10,378,930
+ Graph of assessed value history 2009-2018
0 2009: $7,709,209,490
0 2013: $5,545,239,847
0 2018: $9,118,234,897
• Graph of Tax Rate History (Rate per $1,000 of Assessed Value) 2009-2018
o 2009: 1.19990245
0 2013: 1.76148784
0 2018: 1,138,26050
+ EMS Levy
o In 2008, Citizens voted to make the EMS Levy a Permanent $0.50 Levy
o During 2010 — 2013 we saw our Assessed Property Values decline
o During this span of time Edmonds AV dropped just over 3 1 %
o EMS Levy cannot exceed $0.50
o In a declining AV environment, the City's EMS Levy Revenue also declines
+ 2009-2018 EMS Tax Levy
Year
Action
EMS Leyy
Lost Levy Revenues
2009
$0.50 Permanent Levy becomes effective
$3,854,605
$0
2010
Declining Assessed Values start 4 year skid
$3,477,741
$376,864
2011
Levy Declines
$3,216,629
$637,976
2012
Levy Declines
$2,897,322
$957,283
2013
1 Levy Declines
$2,772,620
$1,081,985
2014
Levy Increases
$3,051,206
$803,399
2015
Levy Increases
$3,387,743
$466,862
2016
Levy Increases
$3,684,514
$170,091
2017
Levy Increase Exceeds 2009 Voted Amount
$3,969,536
$114,931
Net Lost Levy Revenues through 2017
$4,379,529
2018
1 Levy Increase Exceeds 2009 Voted Amount
$4,040,700
$186,095
Net Lost Levy Revenues through 2018
$4,193,434
+ Graph of EMS Levy Rate per $1,000 of Assessed Value History 2009-2018
0 2009: $0.50
0 2018: $0.44
• 2018 EMS Property Tax Calculation for the City of Edmonds
Description
Amount
2017 Levy Amount
$3,969,536
Add New Construction
$18,576
Add Allowance for Adjustments
$8,068
Add Refunds
$4,820
2018 EMS Levy Starting Point
$4,001,000
Edmonds City Council Approved Minutes
November 14, 2017
Page 20
Add 1 % of 2017 Le $39,700 j
Total 2018 Le $4,040,700 J
Impacts of Tax Increases
0 2017 Average Residence Value is $474,800
0 1 % Regular Tax Levy Increase = $5.93
0 1 % EMS Levy Tax Increase = $2.30
o Average Residence would pay $8.23 in 2018 or about $0.69 per month extra
Mayor Earling opened the public hearing and public participation. There was no one present who wished
to provide testimony and Mayor Earling closed the public hearing.
Council President Mesaros said the ordinance regarding a 1 % increase in the property tax and EMS levy
will be scheduled on next week's agenda.
Councilmember Teitzel observed the narrative states, "...percentage increase of 1.0%, plus an increase
equal to the amount allowed by one or more of the following; new construction, improvements to
property, newly constructed wind turbines, any increase in the value..." but does not specify solar panel
installation. He asked why solar panel installations were not included. Mr. James offered to research.
Councilmember Johnson asked about the deadline for the Council to make its decision regarding the
property tax ordinance. Mr. James answered the end of November.
7. ADJOURN TO COMMITTEE MEETINGS
With no further business, the Council meeting was adjourned to committee meetings at 9:29 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.)
Pro
A i] O. EA LING, MAYOR
SCOTT PASSEY, CITY K
Edmonds City Council Approved Minutes
November 14, 2017
Page 21
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