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20181105 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES November 5, 2018 ELECTED OFFICIALS PRESENT Dave Earling, Mayor Michael Nelson, Council President Kristiana Johnson, Councilmember Thomas Mesaros, Councilmember Adrienne Fraley-Monillas, Councilmember Diane Buckshnis, Councilmember Dave Teitzel, Councilmember Neil Tibbott, Councilmember 1. CALL TO ORDERIFLAG 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 Mary Ann Hardie, HR Director Brian Tuley, IT Supervisor Rob English, City Engineer Jeff Taraday, City Attorney Scott Passey, City Clerk Nickolas Falk,,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 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. 4. APPROVAL OF AGENDA COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. APPROVAL OF CONSENT AGENDA ITEMS COUNCILMEMBER FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: 1. APPROVAL OF COUNCIL SPECIAL MEETING MINUTES OF OCTOBER 23, 2018 2. APPROVAL OF COUNCIL MEETING MINUTES OF OCTOBER 23, 2018 3. APPROVAL OF CLAIM, PAYROLL AND BENEFIT CHECKS, DIRECT DEPOSIT AND WIRE PAYMENTS 4. CLAIM FOR DAMAGES Edmonds City Council Approved Minutes November 5, 2018 Page 1 5. AUDIENCE COMMENTS Carolyn Harris, Edmonds, representing the Edmonds Housing Instability Coalition, was glad the Council meeting opened with the flag salute as she is for liberty and justice for all. She provided statistics from the Edmonds School District; there are 65 homeless children registered in Edmonds schools and 443 in the entire Edmonds School District, considerably more than last year at this time. She recognized that many people are afraid Edmonds will turn into something horrible if fair housing is provided; fair housing just means everyone who works in Edmonds or people on fixed incomes who become homeless when the rent on their apartment is increased can live here. She wanted fair housing for those people and did not want children to be homeless because she has learned firsthand those children suffer a lot of problems and in the end, society pays more in more in medical bills than would have been paid for housing. The proposed Housing Strategy is simple and straightforward; it -does not mean there will be a huge apartment building with homeless or low income people moving in next door, the zoning has not been changed. George Keefe, Edmonds, said Edmonds and all communities in the central Puget Sound region must address housing affordability challenges. A lack of affordable housing makes it difficult to attract and retain educators, first responders, nurses, food service staff, and other essential members of a diverse and vibrant community. Exhibit 7 in the Edmonds Housing Strategy, household sizes compared to housing unit sizes, illustrates the gross imbalance of housing inventory. Currently 70% of Edmonds households are 1-2 person households while 63% of the housing inventory is 3-5+ bedroom homes. He vigorously supports efforts to encourage a wider range of housing alternatives to fulfill the diverse needs of households at various income levels and stages in their lives. Dave Cooper, Edmonds, said he has been following the Housing Task Force and strongly advocates for a reboot instead of a reset. Enough issues and questions have been raised to warrant starting over with more input from Edmonds citizens and less input from special interest and developers. Rebecca Anderson, Edmonds, said she and her family moved to Edmonds from Seattle for the Edmonds School District's Deaf and Hard of Hearing Program for her son. According to the organizational chart in the proposed 2019 budget, residents are at the top with the Council, Mayor and Municipal Court as direct reports. She questioned whether the Mayor and Council were being good stewards of Edmonds and how could they be better stewards. As written, the proposed Edmonds Housing Strategy is not the vision she wants for Edmonds and she supports rebooting the draft to allow for input from residents and others in the community before the Council votes. She recognized the Housing Strategy is a draft, that several Councilmembers, the Mayor and even the Development Services Director have commented in local media but there does not seem to be a unified voice from the Council regarding next steps. Many residents have commented online and several town hall meetings have been held where many opinion and concerns were expressed. A person she met at the Visitor Center, a long time former resident of Edmonds now living in Lynnwood, knew nothing of the Housing Strategy or the building under construction near Bartell. This person said nearly everyone visiting the Visitor's Center exclaims how delightful Edmonds is and she wondered if that would continue if the current strategy is implemented. She asked whether the current process for the Housing Strategy was working and what was considered a successful process. She found the current process frustrating as residents have been left out of the process without a way to have productive impact on the outcome. She recommended a new process for the Housing Strategy moving forward. Residents are counting on the Council and Mayor, the steward of Edmonds, to do what's best in the long term. Terry Reule, Edmonds, urged the Council to review the Edmonds Housing Strategy and refine strategies where required but not lose sight of the need to develop all levels of housing. She recognized many Edmonds -area citizens are understandably fearful that the small town atmosphere will be threatened by encouraging higher density zoning and the creation of housing options for middle to lower income residents. Edmonds City Council Approved Minutes November 5, 2018 Page 2 The current Edmonds population includes many middle and low income families who want to continue to live and work in Edmonds. A vibrant, growing community includes young working adults, families with growing children as well as older adults who wish to stay in their homes as long as possible. Thomas Purcell, Edmonds, spoke in favor of a reboot of the Housing Strategy process as the current process has many people concerned and afraid. He agreed with the need for a comprehensive Housing Strategy to address special needs in the community including homeless, indigent, etc., but there needs to be a more complete, broader understanding and a process that includes taxpayers and business owners so there is complete buy -in and if necessary, a public vote. He suggested public hearings where testimony is taken before a final strategy is adopted. Jeff Sheer, Edmonds, said he attended two town hall meetings on the Edmonds Housing Strategy, both began with an explanation that the Housing Strategy was needed due to the Growth Management Act. The purpose of the GMA written in 1990, was to mitigate the threat to environment, economic development, health, safety and high quality of life enjoyed by residents of the State due to uncoordinated and unplanned growth and lack of common goals. Washington's GMA includes legislative findings regarding qualities desired for rural lands but ignores the qualities in urban areas that promote quality of life within the State. He read from Section 36.70A.011, Findings Rural Lands, regarding the importance of rural lands and rural character to Washington's economy, people and environment while respecting regional differences. There is no corresponding section regarding urban areas or the importance of urban areas. The GMA does not recognize the importance of quality urban areas, what quality urban character brings to Washington's economy, its people and its environment. The GMA does not recognize quality urban areas and urban based economies that enhance the economic desirability of the State, help to preserve economic activities and contribute to the State's overall quality of life. Instead, the GMA imposed complicated regulations on urban areas, leaving it to consultants to work out the details, consultants who have made a lot of money on the GMA. Many believe the GMA was poorly written. He believed the GMA was a barbaric piece of legislation that was completely insensitive to the environment, economy and quality of life in urban areas like Edmonds. He recalled speaking to the Council previously to request a ban on heroin injection sites in Edmonds in order to protect the quality of life. His request was refused, and he was told to trust the Council. He requested the Council stand up for Edmonds and work with elected officials in Olympia and inform them that the environment, economy and quality of life in Edmonds is worth saving. Mike Hanning, Edmonds, thanked Council President Nelson for holding the town halls and expressed support for a reboot of the Edmonds Housing Strategy and citizens providing consulting rather than a consulting firm and task force with special interests. He said the building behind Bartell is an eyesore and there is no parking and he was opposed to that type of development. He was dismayed that he has to attend the Housing Strategy meetings when he voted for Councilmember to have citizens' best interests at heart. He was saddened the Council did not have the citizens' best interests at heart or there would have already been a reboot of the Housing Strategy process. He expressed concern with the construction of container homes at a church. He understood that people need help, but he preferred to help Edmonds citizens. Low income housing will not be restricted to Edmonds residents, it will be open to all. Laura Hanning, Edmonds, commented one of the things she learned in high school was that good enough never is. The current Housing Strategy is not even at the good enough stage; in the best interest of the City, it needs to be rethought out and the process rebooted. There has been no thought given to the funding required to make the Housing Strategy work, only funding for the strategy and funding for implementation would be figured out at a later date. She questioned whether anyone would purchase a car and at determine how to pay for it later; most people would not. She recommended funding be a consideration in any proposed draft Housing Strategy. More effort needs to be made to include current residents in the plan and its intent; all residents should have an opportunity for input as they will feel the direct effects of the strategy. Many residents are not aware of the decisions and plans thus far and who do not have enough information Edmonds City Council Approved Minutes November 5, 2018 Page 3 to create an informed opinion. The information presented seems one-sided, telling residents how to think opposed to what will actually occur. It appears builders will benefit most from this proposal and she questioned whether they would receive public funds in exchange for building in Edmonds and giving low housing to anyone that applies. The Housing Strategy is not just for Edmonds residents. She agreed the current plan needs to be rebooted as not enough information had been obtained by the current consultant to make an appropriate decision and there are too many factors that are not transparent to residents. If people want to help others, she preferred giving a hand up rather than a hand out. Rebooting would give residents an opportunity to be better informed and to develop better plan. She supported a more transparent process with more Edmonds -appropriate data. Samm Jaenicke, Edmonds, agreed with a reboot rather than a pause in the Housing Strategy and taking the time necessary to get it right. She recommended that a letter be mailed to every Edmonds household with a brief synopsis and an opportunity to present their views. If there is concern with the cost of sending such a letter, she compared it to the cost of rebooting the process yet again in the future. She inquired where the City is currently with regard to the goal of housing 5,500 more people by 2035, how many housing units have been constructed, are under construction and planned, noting that information should be part of the Housing Strategy. She summarized Councilmembers are all smart, savvy people interested in the good of Edmonds; those qualities exist among the citizenry and she encouraged the Council to heed their voices. Cynthia Cooper, Edmonds, commented from the growing public interest in the Housing Strategy, it is clear the resident population was not adequately informed of the enormous implications the strategy and the Mayor's vision for the City's future would have on irreversibly changing the character of Edmonds. At the last town hall held at the Edmonds Senior Center on October 15, a majority of residents in attendance clearly expressed their concern about and opposition to the Housing Strategy. There is a growing movement among residents speaking up who do not share the Council's vision for Edmonds. In the interest of reestablishing trust with the residents, she recommended the City Council abandon the Housing Strategy and begin fresh with a new task force that consists of resident representation from all areas of Edmonds whose quality of life will be adversely affected by new development. There is too much conflict of interest in the current task force participants appointed by the Mayor who only have one vision for Edmonds. Starting a Housing Strategy from scratch needs to be done slowly, thoughtfully, transparently and based on how all residents will benefit, not just the small percentage of the population with special interests. Continuing with the existing task force and only tweaking the current strategy to appear the public opposition has been heard is neither sufficient nor a reasonable solution. Rushing the strategy on the currently proposed timeline sends a message to Edmonds residents, that Mayor, City executives and the City Council do not honor the concerns and interests of a majority of the populous they represent. Mindy Woods, Edmonds, said like many others, she did not want to see tents in the City's parks, RVs and cars parked on City streets for indeterminant lengths of time or the and 5-6 month long waitlist to get into the local YWCA women and children's shelter. Therefore, there needs to be more income -based housing. More and more seniors are becoming unstably housed and rents are skyrocketing while wages stay stagnant. No one should have to pay more than 30% of their income on housing, yet many are paying 50-60% and barely hanging on. She has been homeless in Edmonds with her child and although she is working hard to change her economic status, after eight months of searching and sleeping on couches and her son staying with a friend, she was fortunate to find a rental she could afford. This situation is not uncommon and she is frequently asked about available resources to which she responds there are very few. The City's Housing Strategy needs to include various housing types to accommodate all income levels including baristas, food server, single parents, teachers, college graduates, young working families, professionals and long-time residents. Kari Michelsen, Edmonds, said Edmonds is a unique City and its residents enjoy living here. Edmonds' slogan has been, An Edmonds Kind of Day which sets Edmonds apart from other Puget Sound cities. Edmonds City Council Approved Minutes November 5, 2018 Page 4 Renton's slogan is, Ahead of the Curve, Kenmore is, By the Lake, Bothell's is, For a Day or a Lifetime. Edmonds' slogan includes its name, likely because the name generates a positive feeling. At the last town hall, the Mayor said Edmonds is a daytime destination for neighboring cities; Seattle residents like it, it's less chaotic and there's less traffic, they spend their money and go home. She questioned why the City is pushing a Housing Strategy that will ruin the character that surrounding cities wish they have. The City needs to be good stewards from the next generations that choose to make Edmonds their home. Let growth be organic and not forced, not have a strategy that gives sweetheart deals like the one the Bartell family received — a 12 -year tax holiday for allowing 20% of the units to be low income which can be market rate after 12 years. She questioned who benefits; the builders, low income people for only 12 years and the taxpayers pick up the tab. She suggested a new task force be composed of people not on other boards who rubber stamp everything and who have no monetary gain from serving. As currently proposed the Housing Strategy is not acceptable to a majority of Edmonds residents. The more the public is aware, the more unpopular it becomes. Richard Warneke, Edmonds, said he was unaware of the proposed Housing Strategy until he heard about it at a local restaurant. This important issue should have been put to a vote of the people. He raised several questions including have there been sufficient meetings to explain the strategy, has it been fully advertised, what is the makeup of the task force, have there been public task force meetings, who appointed the task force members, who are the members and what are their qualifications and profiles. He agreed with the suggestion to mail a letter to residents and supported restarting the Housing Strategy with proper notification, exposure and input. He questioned whether the Edmonds City Charter provided for an initiative or referendum and said perhaps an initiative or referendum was in order. Citizens elect the City Council and Mayor to make decisions, but decisions should only be made after obtaining information from residents. Dorothy Trinen, Edmonds, urged the Council not to neglect the needs of low income people in Edmonds in the Housing Strategy. Every child in a low income family needs to be respected and feel they belong. Every senior citizen that is low income and struggling with rent and/or paying their taxes needs support. She thanked the Council for including that in the proposed Edmonds Housing Strategy. If the strategy needs to be improvements, she suggested improving the components related to low income housing and those in need. Donna Murphy, Edmonds, thanked Mayor Earling, the City Council and Development Services Director Shane Hope for taking the time to listen to citizens' concerns regarding the Housing Strategy. Affordable housing is not synonymous with low income housing, nor is it synonymous with homelessness. A middle income young family would need an income of approximately $168,000/year to be able to afford to live in Edmonds. Young families are priced out of their own communities where they would love to raise their children. Housing price growth has exceeded wage growth. People who work in Edmonds and provide essential services can no longer afford to live here and they spend their earned income elsewhere. Plans that incorporate affordable housing strategies allow young, vibrant families and older aging in place seniors to continue to build, strengthen and invest in the Edmonds community. Rather than being reactive, she supported creating a proactive approach to addressing growing pains. Edmonds and surrounding areas have experienced an unprecedented level of growth. To continue to preserve an Edmonds Kind of Day requires utilizing the research outlined in the Housing Strategy that supports what's best for the most, not just the loudest voices. Lynn Chellis, Edmonds, said given the importance of and the lasting effects for Edmonds of a Housing Strategy, it is imperative members of the task force be seated by an open application process. The City's website states volunteer boards and commissions serve the community by providing advice and recommendations to the Mayor and City Council regarding programs, activities and issues unique to their mission and purpose. Volunteers for boards and commissions are chosen by filling out an application, a form that becomes a public record subject to discloser and City Council affirms appointments to boards and Edmonds City Council Approved Minutes November 5, 2018 Page 5 commissions. While the process for developing the Housing Strategy has been done by a "task force" it is performing the same function as boards and commission and in fact, it could be argued that compiling a housing plan that includes recommending radical changes to current zoning laws has a greater and longer lasting impact than board and commission recommendations. She relayed her understanding that the Development Services Director is currently contacting hand-picked people, asking if they would like to serve on a "new task force," which she felt was business as usual and did not lend any transparency to the process. She recommended a complete reboot of the process, including selection of a task force via an open application process of people from diverse neighborhoods and with a variety of ideas of what a Housing Strategy should look like. Gail Court, Edmonds, supported a reboot of process to be more transparent because not enough people know about the Housing Strategy. She got the feeling that the Mayor and Councilmembers think they are royalty, but in fact they are public servants and the public is requesting an opportunity to provide input. She expressed willingness to serve on the task force; she is an average citizen; she and her husband own a business in Edmonds and want to see Edmonds remain charming. She urged the Council to include average citizens in the process and the formation of the Housing Strategy. She is not afraid of the homeless but wants to see the Housing Strategy done right and not put in a compartment. Robert Swerk, Edmonds, said although he tried to stay well-informed, he had not heard anything about the Housing Strategy until he received an email about it. He strongly suggested the process be rebooted and include people on the task force who live in Edmonds, have children in the area, and longtime residents. He was unaware who currently served on the task force or what their interests were. It would be valuable to reopen the process and interested citizens be allowed to participate and voice their opinions regarding rezoning, reduced parking, larger scale buildings, etc. Mayor Earling advised the Housing Strategy is not on tonight's agenda; it will be discussed by the Council next week. He declared a brief recess. 6. ACTION ITEMS PUBLIC FACILITIES DISTRICT PFD BOND REFINANCING Finance Director Scott James recognized Marc Greenough, Foster Pepper, the City's Bond Counsel; Roy Koenig, Kutak Rock, the PFD'S Bond Counsel; PFD Board President Mike Popke; ECA Director of Operations Matt Keller; and several PFD and ECA Board members. He reviewed: • PFD Bond Refinancing o Current bond rate is 4.24% o Refinance: Proposed loan interest is 3% o Collateral: City purchases CD, rate is 2.1% • Annual Cash Flow Savings o Current bond payment averages $402,640 o Refinance: Proposed loan payment averages $351,496 o Refinancing would save $51,144 per year • PFD Bond Ordinance Notes of Interest, page 123 & 124 o Section 1.4 & Section 5 — Principal Amount of Loan Not to Exceed $3,000,000 or Amount to Refund Bonds Plus Issuance Cost Only o Anticipate principal amount to be close to $2,807,000 • PFD Bond Ordinance Notes of Interest, page 124 o Section 2 — Addresses the restated Contingent Loan Agreement (Exhibit A) o Approval of Ordinance — also approves the CLA • PFD Bond Ordinance Notes of Interest, Page 124 Edmonds City Council Approved Minutes November 5, 2018 Page 6 o Section 6 — Addresses the Collateral Agreement (Exhibit B) o Approval of Ordinance — also approves the Collateral Agreement • Contingent Loan Agreement Notes of Interest, Pages 132 (Red line copy) & 150 (Clean copy) o Article 1. Paragraph 5 — The State Legislature amended RCW, extending the PFD's taxing authority from 2026 to 2041 • Contingent Loan Agreement Notes of Interest, Pages 133 (Red line copy) & 151 (Clean copy) o Article 1. Paragraph 9 — Paragraph added to include the CLA loan amount from the City to the PFD • Contingent Loan Agreement Notes of Interest, Pages 138 & 157 o Section 5.4 Paragraph 2 — The PFD shall provide City Council Finance Committee the following: a) Quarterly Finance Report b) Financial Expectations Report each November c) Complete Financial Statements within nine months after the end of each year • Contingent Loan Agreement Notes of Interest, Pages 141 & 160 o Section 8.1 — First Paragraph: Amended to shift Continuing Disclosure Requirements to the PFD from the City • Assignment of Deposit Account Notes of Interest, Page 167 1. The Assignment of Deposit Account is an agreement between the City, the Edmonds PFD and First Financial Northwest Bank Only 2. Definition of Assignment: The City "...grants to Lender a security interest in the Collateral..." 3. The "Collateral" is the Deposit Account or (CD) 4. The Deposit Account (CD) Matures on December 31, 2028 or prior if the PFD pays the loan off before this date 5. The balance of the CD is reduced by 1/10th every year, as the PFD pays down the loan • CD Year-end Balance 0 2018: $2,807,000 0 2019: $2,526,300 0 2020: $2,245,600 0 2021: $1,964,900 0 2022: $1,684,200 0 2023: $1,403,500 0 2024: $1,122,800 0 2025: $842,100 0 2026: $561,400 0 2027: $280,700 0 2028: $0 Council President Nelson referred to Section 3.7 City Acknowledgements, which states, "The City acknowledges and agrees that the District wi44 may pledge to the payment of the Note..." He inquired about the significance of replacing "will" with "may." Mr. Greenough answered when he was first asked to draft the agreement, it was unclear whether the bank would want the benefit of the CLA so it was drafted in the alternative. From the bank's perspective, it does not make any difference; from the City's perspective, if the PFD fails to pay, the City can make the PFD a loan to provide funds to pay the bank. If the City does not make the PFD a loan, the bank has the money on deposit and can utilize those funds. Councilmember Tibbott relayed his understanding that should the PFD default on the loan, the bank would assume the rest of CD. Mr. Greenough answered the City would have two alternatives; the City can continue its current practice of making a loan to the PFD to provide the PFD funds necessary to pay the bank. Councilmember Tibbott asked what happened if the City decided not to do that. Mr. Greenough answered then the bank would go after the CD. Councilmember Tibbott asked if the City then would become the Edmonds City Council Approved Minutes November 5, 2018 Page 7 owner of the property. Mr. Greenough said the existing CLA remains in effect and is amended to reflect the bank is the owner of the bond instead of the bond holders. If the PFD does not have enough money to pay off bank, they send a notice of deficiency to the City and request a loan. If the City did not make the loan to the PFD under the CLA, the bank wanted additional collateral which is CD. Councilmember Teitzel referred to Exhibit B, and the collateral description, CD with lender with an initial balance of $3 million; he assumed that would be revised to $2,807,000 once that amount is finalized. Mr. Greenough answered that number is expected to be finalized Wednesday and will depend on the treasury rates. Councilmember Teitzel inquired about Section 3.3(b) which states in each year that the Note is scheduled to be outstanding, the debt service payable on the Note shall be less than the debt service that would be payable on the Refunded -Bonds if they were not refunded. Mr. Greenough said the exact debt service was unknown because the numbers were not locked in until Wednesday and they wanted the Council to have assurance the actual transaction as executed would reflect a savings and if interest rate spiked tomorrow and savings were no longer available, the transaction would not move forward. Councilmember Teitzel said presuming nothing changes before Wednesday, Item b would not be necessary. Mr. Greenough agreed. Councilmember Buckshnis referred to her memo regarding why she supports this. There is another aspect under the ILA between the City, PFD and Snohomish County. The $1.3 million that the City is owed from previous loans to the PFD is addressed by the ILA. As Mr. Greenough indicated, the PFD could borrow if they were unable to make the payment, and that would be addressed by the ILA. She clarified it is basically a loan supported by a CD with the goal of starting dialogue with the PFD and ECA Boards to determine if they are sustainable. Her memo to the City Council states this is a smart business decision and hopefully interest rates will not spike. If the PFD defaults on the loan and the bank has the CD, Councilmember Fraley-Monillas asked whether the ownership of the ECA defaults to the City. Mr. Greenough answered the provision that gives the City an equity stake in the PFD property if the PFD does not pay the bond is in CLA; that does not change. The CLA is amended and restated but it is essential the same arrangement as currently exists with the PFD. The CD was requested by the bank to provide a more favorable interest rate as a backup to the City providing a loan under the CLA. Since the CLA was first put in place, there have been defaults on CLAs by other cities in the State and they have become a bit disfavored and so lenders often look for additional collateral, hence CD. Councilmember Fraley-Monillas asked what happens if the PFD defaults on the loan. Mr. Greenough answered the City has two choices 1) it can lend money to the PFD and PFD would use that money to pay the bank in which case the City's equity interest is invoked, or 2) the City can do nothing and the bank would draw down the CD. Councilmember Fraley-Monillas inquired about equity notice. Mr. Greenough answered the way the CLA works, the City makes loans to the PFD and to the extent they have money to pay the City back each year they do and to the extent they do not, when their bond is paid off in 2028, the balance of the loans the City made to the PFD is determined and the City forgives the loan and gets an equity stake in the property in return for the total amount of the loans made to the PFD over the years. COUNCILMEMBER MESAROS MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE ORDINANCE NO. 4133 AUTHORIZING THE EXECUTION AND DELIVERY OF THE AMENDED AND RESTATED CONTINGENT LOAN AGREEMENT WITH THE EDMONDS PUBLIC FACILITIES DISTRICT AND A COLLATERAL AGREEMENT WITH FIRST FINANCIAL NORTHWEST BANK. MOTION CARRIED UNANIMOUSLY. 2. FUNDING FOR STUDENTS SAVING SALMON QUARTERLY WATER QUALITY TESTING Edmonds City Council Approved Minutes November 5, 2018 Page 8 Councilmember Buckshnis said the Council approved similar funds last year. Students Saving Salmon added another high school and are looking at monitoring Perrinville Creek. This funding will be used for quarterly testing and testing following two flood events in existing areas such as the Edmonds Marsh, Shellabarger Creek, and Shell Creek. The funds come from the 2018 Council Contingency Fund but will be used in 2019. Councilmember Fraley-Monillas asked why the funding was not included in the 2019 budget. Councilmember Buckshnis answered there are funds available in the 2018 Council Contingency Funds. She will include it as a decision package in the 2020 budget. Councilmember Fraley-Monillas asked how much is in the Council Contingency Fund. Councilmember Buckshnis recalled $25,000/year. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO APPROVE $15,000 FROM 2018 COUNCIL CONTINGENCY FUNDS TO PAY FOR 2019 WATER QUALITY QUARTERLY TESTING. MOTION CARRIED UNANIMOUSLY. 7. BUDGET PRESENTATIONS 1. 2019 BUDGET PRESENTATIONS Questions rep-ardine Public Works Bud et Councilmember Buckshnis said the majority of her questions are related to capital. Her questions regarding reclassifications, etc. have been answered by Finance Director Scott James. She asked about the tide gate and whether it is now closed for the rest of the year. Public Works Director Phil Williams answered yes, there are no plans to open it until spring 2019. Councilmember Buckshnis recalled information provided by the consultant, Windward, regarding why it is detrimental to cut off saltwater during winter months such as allowing the cattails to continue to grow. Councilmember Buckshnis asked if funds could be included in the budget to have someone watch the tides and open and close the tide gate. Mr. Williams answered staff does watch the tides and know that when the tides get above a certain point and there is a forecast of rain, the tide gate needs to be closed. Once the pump station is built at Beach Place which has been delayed due to federal funding, the concern with flooding with a high tide and a significant rain event will not be as acute. Councilmember Buckshnis said flooding on Dayton is basically because of the marsh on the east side SR -104. Mr. Williams answered it is also related to drainage from Harbor Square that cannot get into the storm line on Dayton when it is fully charged and surcharged. Councilmember Buckshnis said there will not be high tides and rain events every day from November to March and closing the tide gate cuts off saltwater from the marsh. She supported a method to leave the tide gate open when there aren't high tides in November through January. There have only been four to five 12 - foot tides events in the last four years. She preferred to be proactive toward the health of the marsh which means opening the tide gates in November, December and January when high tides and rain events do not occur. Mr. Williams answered during the two weeks the tide gate was closed and then opened for two weeks, the consultant got some great data. He pointed out opening the tide gate is not as trivial an exercise as it sounds. The gate is very heavy and there is a great deal of pressure. Recently a log got stuck, requiring the log be cut up before the valve could be closed. The tide gate needs to be replaced with a motorized gate on a SCADA system that can be programmed; that would be part of the Willow Creek daylighting project. Councilmember Buckshnis recalled the consultant suggested a different way to close the gate. Councilmember Buckshnis recalled the October 16 Public Works budget presentation included the Dayton Street pump station for $907,000 but it is also included in the capital plan. Mr. Williams said the $907,000 is carryforward; it was hoped the pump station project would be done this year, but the funding did not materialize. Now staff is proposing three potential funding mechanisms, 1) seek an appropriation from the Edmonds City Council Approved Minutes November 5, 2018 Page 9 legislature for the remaining $500,000 due to benefit to the state and ferries to prevent flooding in the holding lanes, 2) decision package in the budget for a backup plan to provide $500,000 from stormwater funds, and 3) a hazard mitigation grant request for $500,000 has been submitted to FEMA but with all the natural disasters in recent years, FEMA has not finished selecting projects for funding. For Councilmember Buckshnis, Mr. Williams said the way the $2M project will ultimately be funded is $907,000 programmed in 2018 that will be carried over into 2019; the City secured a $500,000 loan from Snohomish County and an additional $500,000 is needed. Councilmember Teitzel commented there was $403,000 in depreciation in 2017 in the Equipment Rental Fund 511, but nothing was budgeted in 2018 or 2019. Mr. Williams answered depreciation is done in arrears, it is not budgeted in the year it happens. Mr. James said a former Councilmember insisted the budget match the CAFR; deprecation is only reported in the CAFR and is not something that is budgeted. He plans to propose to the Finance Committee that it be removed. Councilmember Johnson commented the opening/closing of the tide gate is an annual discussion; Councilmembers want to keep it open and staff explains why it has to be kept closed. It was her understanding the gate is antiquated with a difficult mechanism that uses a truck to open and close it. The consultant, Windward, suggested the cable and pulley was underweight and could result in injury. She asked the cost of using a different system to open/close the gate safely using the existing equipment. Mr. Williams said until recently, the chain used to pull on the tide gate was an inadequate gauge and was recently replaced with a more robust chain. It still requires grabbing the chain and pulling it with equipment such as the truck. Councilmember Johnson said the consultant suggested an alternative mechanism; he has some experience on oil derricks. Since this is an ongoing issue and it is important the Edmonds Marsh have saltwater as well as that Dayton Street not flood, she suggested here must a better approach than keeping the gate closed for six months. Mr. Williams said the gate does not have to be closed; it was thought to be a safer approach on balance, but if the Council wants to run more risk of flooding and the downside is not seen as unacceptable, the gate could be opened and closed. It is not something staff enjoys doing, it is a big hole, it is a heavy gate, and often things come in with the tide that prevent the gate from closing, requiring people go into the hole with a lot of pressure behind the gate to remove whatever is blocking the gate. That was not something he wanted to do daily but depending on the frequency, if the Council wanted to run a larger risk of flooding for the benefit to the marsh until the project is finished, that was a calculus he would be interested in hearing. Councilmember Johnson expressed interest in a more agile system as this discussion occurs every year. Eventually the daylighting of Willow Creek will provide a whole different dynamic for the marsh. Mr. Williams offered to give this more thought, commenting it was not really a budget issue. There is a project planned to address this, but the funding has been delayed. Councilmember Johnson summarized her question was the cost and what mechanisms would be required to improve opening and closing the gate safely. Police Department Chief Al Compaan reviewed: • Recent Highlights o 2017 Activities • Part 1 Crimes Solved - 35.4% ■ Felony Charges Referred for Filing - 372 • Traffic Citations and Infractions - 4,794 ■ DUI Arrests - 111 ■ Total Arrests (adult and juvenile) — 1,300 Edmonds City Council Approved Minutes November 5, 2018 Page 10 ■ Animal Control Incidents — 1,417 ■ Parking Citations — 2,105 ■ Firearms Related Requests (CPL, Transfers) — 991 ■ Public Disclosure Requests - 1,722 ■ Traffic Collisions Investigated - 854 ■ Total Dispatched Calls for Service - 22,822 o Specifically Approved in 2018 Budget ■ Social Worker position implemented after position filled in November of 2017 ■ School Resource Officer position staffed at the beginning of the 2018-2019 school year ■ Increase to 75% FTE for P/T Parking Enforcement ■ Added one Police Officer for second K-9 position ■ Remodel of the police records area • Budgeted Personnel Hired or In -Process 2018 o Hired 6 police officers (vacancies due to retirements/addition of School Resource & K-9) o Hiring in -process additional 3 police officers o Hired Police Staff Assistant (to fill vacancy) o Hiring in -process for 2 PSA positions o Hired P/T Admin Assistant (vacancy due to retirement) • Decision Packages o DP # 77 School Resource Officer for Scriber Lake High School (at Woodway Campus) - $153,497 ■ Adds a police officer position for SRO assignment ■ Partnership with the Edmonds School District, 50/50 cost share (10 months) salary and benefits; contribution for patrol vehicle o DP # 79 Police Hiring and Basic Training - $25,000 • Experiencing attrition due to anticipated retirements • Thorough background checks imperative - often require out of area travel ■ Basic Law Enforcement Academy costs approximately $3,500 per recruit ■ Paid out of training budget; strains our ability to provide legally mandated and current best practice training to the officers ■ Anticipate need to send approximately 10 officers to BLEA in 2019, with the trend continuing over the next few years o DP # 80 Electronic Parking Ticketing Software/Hardware - $49,900 Parking citations currently hand written ■ 3 -hour parking requires tires be chalked and return 3 hours later to determine if vehicle has moved ■ System will automatically capture vehicle information, location, time ■ Vehicle information analyzed for 3 -hour limit violation ■ Parking citation issued electronically with handheld device ■ Number of parking citations should increase due to improved efficiencies o DP # 81 Purchase of Bullet Resistant Shields - $11,700 ■ Current shields outdated, past useful years • For safety responding to armed/barricaded subjects, high risk warrants, high risk traffic stops, active shooter situations, etc. ■ Ballistic resistant and portable • Currently have a shield in 4 designated vehicles ■ Improved protective technology ■ Purchase of 1 shield for each patrol vehicle o DP # 82 Police Operating Cost Increase - $2,400 ■ Result of price increases, contract adjustments, small increases in certain line items (supplies, small equipment) Edmonds City Council Approved Minutes November 5, 2018 Page 11 Council President Nelson asked if the ballistic resistant shields were primarily for handguns, not long guns. Chief Compaan answered yes. Council President Nelson asked if shields were available for long guns. Chief Compaan answered yes, but they are too heavy to be manipulated by one person. The ballistic resistant shields are intended to be utilized by one person. Shields that will stop rifle rounds are typically mounted on wheels to be rolled which is not practical to keep in a patrol vehicle. Councilmember Fraley-Monillas said she has heard from command staff that funds were needed for the social worker for the cost for transportation, etc. and she did not see that in the budget. Chief Compaan said if her comment was about miscellaneous funds for food, overnight housing, transportation, etc., the department was able to secure a grant through Snohomish County for approximately $7,700 which will continue next year and will provide sufficient funding. He offered to doublecheck on that. Councilmember Buckshnis was impressed with DP 80, Electronic Parking Ticketing Software/Hardware, and asked why funding was not proposed via a budget amendment. Chief Compaan answered Mukilteo purchased a similar software/hardware package; the feedback regarding the system has been very good. One of the key requirements was interface with the court system so data could be uploaded. Councilmember Buckshnis observed the estimated 2018 overtime was $600,000, about $150,000 over budget and asked why it was so high and whether it was due to retirements. Chief Compaan answered the excess overtime is largely due to open positions and the delay in getting new hires into the Basic Law Enforcement Academy. For example, four newly hired officers have been on the payroll since mid-August at a cost of $88,000 in salary and benefits; they will be going to BLEA next week. That same situation is replicated across the State and he suggested the Council consider that in its legislative priorities. This is a false economy in what the legislature has done with criminal justice training funding and another example of how city and county law enforcement have been impacted by the legislature's decisions. Due to the competitive market, it is necessary to hire the new recruits; he makes the best use of their time, but it is not the most efficient use. Councilmember Buckshnis observed overtime in 2019 is budgeted at $450,000 and asked if that would be enough. Chief Compaan answered there is no guarantee, they will do the best they can. With regard to the electronic parking and ticketing software, Councilmember Teitzel relayed some people will park for three hours and then move their car forward 5-10 feet to avoid getting a ticket. He asked if this system will preclude that. Chief Compaan said a driver cannot legally avoid overtime parking by moving a vehicle a few feet; a driver cannot park in the same block within the posted time limit. This system will find those vehicles as the hardware/software package captures vehicle license plates as well as the valve stem location on tires. Drivers will no longer be able to avoid a ticket by moving their car down the block. Councilmember Teitzel referred to page 73, the General Fund Police Administration Cost Center, observing salaries are increasing about $20,000 in 2019 compared to 2018 but benefits are decreasing about $7500. He typically expected to see salaries and benefits track proportionately. Chief Compaan offered to research and respond via email. Councilmember Mesaros said in the second year of the merger of 911 dispatch agencies SNOCOM and SNOPAC, there were financial savings due Edmonds. Chief Compaan said a proforma budget was prepared for the consolidated comm center for 2019 and some savings should be realized in 2019. That is part of the Non -Departmental Budget. He offered to research and respond via email. Councilmember Mesaros commented another potential opportunity for savings is the merger of SERS and Snohomish County, but the impact likely will be 2020 or 2021. Chief Compaan offered to research and respond via email. Edmonds City Council Approved Minutes November 5, 2018 Page 12 Mayor Earling declared a brief recess. City Clerk City Clerk Scott Passey reviewed: ■ City Clerk Programs 0 5 FTEs — Administrative, Legislative and Technical Support o City Hall Front Desk/Reception/Phone o Business Licensing/Special Events Permits/Parking Permits o Records Management o Public Record Requests o City Council Agenda & Meeting Management Support • 2018 Accomplishments o Parking Permits (1,197) - $25,000 Revenue o Business Licenses (3,210) - $ 125,000 Revenue o Public Records Requests — 172 o Records Management: Filed, Processed and Recorded o Ordinances/Resolutions o Contracts/Interlocal Agreements/Franchises o Council meeting packets/minutes o Video/audio files Expenditures 2017 Actual 1 2018 Budget 2019 Est I Discussion Total 632,191 1 661,485 670,295 The 2019 Clerk's Office Budget totals approximately $670,000, which represents an 1.5% increase over the estimated 2018 budget. ■ Decision Packages/Changes 0 2019 Budget Changes o Annual adjustment for technology services and interfund rental (Clerk -share of citywide expenditures): o Decision Package #2 o DP #85 adds $1,781 for a hosted website o DP #86 adds $292 for Office 365 Migration o DP #87 adds $438 for a Council video recording device o DP #89 adds $350 for aerial imagery o Line item transfer of $10,000 from communications line item (all city mail) for "cost of doing business" increases to: ■ Professional services (code publishing, minutes writing); County recording, records request software tool for Police; travel/training Councilmember Teitzel referred to page 43, observing salaries are increasing $13,000, but benefits are decreasing $27,000. Mr. Passey offered to research and respond via email. Councilmember Buckshnis asked if there would be any costs associated with the change in business licenses. Mr. Passey answered the City will be partnering with the State Business Licensing Service to issue/manage business licenses and provide a streamlined method for businesses to obtain a state and city licenses online. The code will need to be amended to acknowledge the State is handling the City's business licenses, but there is no cost associated with the change. _Mayor's Office Mayor Earling reviewed: Edmonds City Council Approved Minutes November 5, 2018 Page 13 2018 Accomplishments o Advanced $1 M from the $ l OM in state transportation budget for Highway 99 o Concluded Police Support group and Teamster negotiations o Maintained strong and growing economy o $6M from the State for Waterfront Access project o Operating revenues are $318,000 higher than 2017 o Progress on several fronts in Public Works, examples: o 9.2 lane miles resurfaced streets o Completion of 76th and 212th o ADA improvements with 13 curb cuts 0 238th walkway from SR 104 to Highway 99 o Chart of grant awards: ■ 2012: $7,648,163 ■ 2013: $2,800,677 ■ 2014: $9,416,331 ■ 2015: $5,908,750 ■ 2016: $4,024,000 ■ 2017: $13,766,400 ■ 2018: $10,262,000 o Sales Tax Revenue Graph: ■ 2013: $5,429,060 ■ 2014: $5,976,940 2015: $6,811,908 ■ 2016: $7,007,914 ■ 2017: $7,409,525 2018: $8,100,000 (projected) o Challenges 10 Maintain Edmonds long-term financial strength ■ Continue economic expansion • Continue progress on major programs; Highway 99, Civic Park and Waterfront Access projects ■ Continue progress on needed infrastructure projects for road resurfacing, water, sewer and stormwater projects • Conclude negotiations with AFSCME ■ Continue success with grants Expenditures Expenditures 2018 Budget 2018 YE 2019 Discussion Estimate Recomm. Total 297,088 1 293,557 295,155 Mayor Earling provided handouts from a Sound Transit Board meeting regarding projected slowing in retail sales tax. A report by Blumberg News following an extensive survey of U.S. business economists found two-thirds expect some type of recession between now and the end of 2020. Councilmember Buckshnis asked the percentage of grant awards secured by each department. Mayor Earling offered to research and respond via email, noting that varies year to year. Councilmember Buckshnis suggested adding Edmonds Marsh to major programs as it is a very important project to many people. Mayor Earling advised discussions with state legislators will advance the request for $500,000 funding for the pump station, the City's top capital project for 2019. Councilmember Buckshnis acknowledged the pump station will address flooding but daylighting of Willow Creek and the Edmonds Marsh restoration are major programs. Edmonds City Council Approved Minutes November 5, 2018 Page 14 Councilmember Teitzel recalled recent discussion about the Unocal property that will transition to WSDOT in early 2019. He referred to page 5 of the Capital Facilities Plan (CFP), which still includes the Edmonds Crossing Multimodal facility with unknown status. His understanding is WSDOT has stated they have no plans to move the ferry terminal and he questioned whether the Edmonds Crossing project should remain in the CFP. Mayor Earling said WSDOT has not yet completely written off Edmonds Crossing, but have said they want to work with the community on a resolution. From his conversations with WSDSOT, Edmonds Crossing seems less likely with the advancement of the Waterfront Connector project and the relief that provides; $30M for the Waterfront Connector compared to $350M for Edmonds Crossing. Mr. Williams answered it is a timing issue; the State's draft plan does not specifically mention Edmonds Crossing but commits to working with Edmonds on a solution. Once WSDOT's plan is finalized, Edmonds Comprehensive Plan and CFP should be revised to be consistent, but it is premature to change them before the State has finalized their plans. Council Finance Director Scott James reviewed: w Expenditures Expenditures 2018 Budget 2018 YE Estimate 2019 Recomm. Discussion 580,919 533,800 376,647 The major changes for the Council budget include changes in Council's Professional Services budget. The 2018 Council's Professional Services budget included a one-time expense of $175,000 for a Marsh Study. Councilmember Buckshnis said the estimated professional services in 2018 will not be $237,160 and she anticipated a carryforward of approximately $90,000. Mr. James said the carryforward can be done via the budget process or a carryforward. Councilmember Buckshnis asked how $62,160 for professional services in 2019 was developed. Mr. James answered it was the result of subtracting $175,000 from the 2018 budget. Finance Mr. James 2018 Accomplishments o Received GFOA's Certificate of Achievement for Excellence in Financial Reporting o Government Finance Officers Association o Received A Clean Audit for 2017 o Submitted 2017 CAFR to GFOA o Assistant Finance Director, Dave Turley & GIS Analyst, Dave Rohde completed the City's 1st Citizen's Report (PAFR) o Assistant Finance Director, Dave Turley & GIS Analyst, Dave Rohde completed the City's 2nd Citizen's Report o Investment earnings ■ 2013: $74,830 ■ 2014: $163,214 ■ 2015: $335,926 9 2016: $423,816 ■ 2017: $606,132 ■ 2018: $840,000 (projected) ■ 2019: $1,092,000 (projected) o Worked with Council Finance Committee & Amended Several Finance Policies o Worked with Long-range Financial Planning Committee on drafting an amended Fund Balance Policy Edmonds City Council Approved Minutes November 5, 2018 Page 15 • Expenditures 2018 Budget 2018 YE Estimate 2019 Discussion Recomm. Total 1,237,786 1,172,700 1,236,705 Councilmember Tibbott asked how the 2.1% interest rate on the CD compared to other investments. Mr. James advised the quarterly interest payment will be reported as investment earnings, He expected approximately $324,000 in interest over 10 years which will be deposited into the General Fund. Councilmember Tibbott asked how that compared to other investments. Mr. James answered it is on the top end of the portfolio, other investments are lower because many of the City's investments are bonds which are held to maturity. Councilmember Buckshnis asked if the amount budgeted in 2019 for LEOFF Medical Insurance Reserve was accurate based on experience with healthcare expenses for that group. Mr. James answered a couple individuals are requiring long term care. The Disability Board has been trying to address that including putting limitations on the maximum monthly payment. The amounted budgeted is the best guess of the expenditure in 2019. Councilmember Buckshnis commented the Fund Balance Policy has not been reviewed by the Council Finance Committee. Mr. James recalled the Finance Committee had discussed that policy and recommended forwarding it to the City Council. Councilmember Buckshnis referred to $695,000 in the 2018 ECA Contingency Reserve. She asked about the money the PFD borrowed from the City for their roof. Mr. James said those loans been repaid with interest. Councilmember Buckshnis referred the decision package in the 2019 budget for $75,000 for ECA funding for operations which she did not support. Mr. James advised that would be described in the Non - Departmental budget presentation. Information Services IT Supervisor Brian Tuley reviewed: • Successes o New Phone system ■ Rewiring City buildings for new data lines ■ Update of network design to accommodate new patch panel closets o MDM rollout (cell phones / tablets) o Document Sharing for prosecutors Office • Expenditures 2018 Budget 2018 YE Estimate 2019 Discussion Recomm. Information Services 1,335,413 1,327,219 1,048,911 DP65, 86, 87, 88, 89 286,502 $ Change 2019-2018 -21% % Change 2019-2018 • Decision Packages o Decision Package #65: $61,000 Hosted Website o Decision Package #86: $ 10,000 0365 Migration o Decision Package #87: $15,000 - Video Recording equipment replacement o Decision Package #88: $28,250 - Web dashboard o Decision Package #89: $12,000 - Aerial Imagery • Challenges o Personal productivity k Traditional vs 0365 Edmonds City Council Approved Minutes November 5, 2018 Page 16 o Backups ■ "owned" cloud vs hosted o Security • Threat prevention / mitigation ■ Training ■ Data recoverability it Business continuity Councilmember Fraley-Monillas asked what became of the fiber optics project that the City invested about $1M in for citizens to use. Mr. Tuley answered WSDOT wanted to install fiber to the ferry terminal and City got half of the fiber strands for granting WSDOT access. Efforts were made to expand that and get more customers. There were a lot of moving parts; a study in 2004 found it would cost $30M to install fiber citywide. During discussions, public utility companies learned what was happening and they filled the utility poles with fiber which requires the next entity that puts something on the pole to fix all the past problems. A quote for a customer four years ago for a six -block run was $41,000 to fix the poles which was not feasible. As time went on, other technologies became more available and competitive. For example, a Comcast cable modem costs $110/month, inexpensive for a lot of bandwidth, compared to 10 years ago. Mr. Tuley explained in addition, wireless carriers are considering a rollout of 5G cell service which promises gig connectivity to devices and will require access points everywhere because it is line -of -sight. Factoring in the cost to run fiber, commercially available options and emerging technologies, it does not make sense to put citizen funds into something that may not be viable almost immediately. Other companies have tried to do the same thing such as Google Fiber and have not been successful for the same reasons, high operational capital costs and low user saturation levels. He summarized it is not a viable market in today's industry due to changes in technology and unknown future changes in technology. Councilmember Fraley-Monillas aske what happened to the $1M that was put into fiber. Mr. Tuley said it was approximately $600,000; it went to spreading the existing fiber and putting equipment in place. The City uses a majority of the fiber for its own needs. Gig fiber is available across the backbone to all city - owned buildings and some of it was used for redundancy. The City is an internet service provider and has two separate paths; if one goes down, the other automatically takes over. Mr. Tuley summarized the funds were spent on infrastructure and equipment. Community fiber works in communities that are technology islands and have an anchor tenant such as a school district or a hospital. The City tried to contract with the schools and hospital, but the providers who installed the fiber on the poles got the contracts ahead of the City at a better rate. Councilmember Buckshnis recalled the City ran fiber to a couple buildings that paid for the fiber and asked if the City was still contracting with them. Mr. Tuley answered the City has two customers. Councilmember Buckshnis referred to DP 87 Video Recording equipment replacement and IT's share of $15,000. She asked how the amount charged each department was calculated. Mr. Tuley answered there are two formulas, for example 0365 Migration is charged on a per staff basis; aerial imagery which benefits the entire City, the cost is determined by the percentage of computers. Councilmember Buckshnis said for video recording equipment replacement, one department was charged $5,000. Mr. Tuley answered that was Non -Departmental. Councilmember Tibbott asked if DP 88 for $28,250, Web Dashboard, was a one-time or an annual cost. Mr. James answered the one-time cost is $18,750, the annual support is $9500. Councilmember Tibbott asked how many departments were expected to use that software. Mr. James answered it was being licensed for all departments and 10-12 power user licenses. Councilmember Tibbott asked how it was expected serve citizens. Mr. James described how dashboard reporting would be used to build reports and information for Edmonds City Council Approved Minutes November 5, 2018 Page 17 the City's website. Councilmember Tibbott asked if it would be mobile friendly. Mr. Tuley answered it was built on a web -based hosted platform. Today 60-70% of website hits are from mobile devices. With the advent of 5G networks, Councilmember Tibbott asked if poles will have additional antennas and boxes. Mr. Tuley said staff is working on a small cell ordinance now; the equipment will be everywhere as it requires line of sight. The ordinance will be presented to Council in 2019. Councilmember Mesaros asked if the City has a retirement policy for tablets based on age. Mr. Tuley said not for tablets and cell phones because they are relatively inexpensive, and people tend to either drop them or an IOS update makes them so slow that they need to be replaced. Councilmember Mesaros asked the annual cost of the fiber optics if the City did not have its own. Mr. Tuley said during the first six months he was with the City, he retired two leased T -I connections to the Park shop which were $1400/month each. The City has eight buildings, so it would be quite expensive. Councilmember Mesaros observed even though it was envisioned fiber service would be sold to others, the City's use of the fiber is saving money. Mr. Tuley agreed, noting as the need for bandwidth increases, technology can be improved by replacing the optics at each end. Mayor Earling announced Agenda Item 8.1, Videotaping of Council Committee Meetings would be postponed and Council agreed to postpone the Presentation on the Proposed 2019-204 Capital Facilities Plan/Capital Improvement Program to next week. Non -Departmental Mr. James reviewed Non -Departmental purpose: ■ Non -Departmental is 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 • Ws.v Nnn_De.nsrtmental Exnendltares 9 Decision Packages o DP #90 - 2019 RFA Contract ■ The Regional Fire Authority is in negotiations with its bargaining group • Until the labor contract is agreed to, the City will be billed at the 2017 rate of $7,378,718 ■ This decision package includes a 3% or $221,362 increase over 2017 costs for a 2018 estimated cost of $7,600,080, and ■ Additionally, this decision package includes a 3.6% or $273,603 increase over the 2018 estimated costs for a 2019 estimated cost of $7,873,682 o DP # 91 Public Defense Contract Increase ■ Due to having to keep in compliance with the standards for indigent defense • Change in our Judge and the number of motions and jury trials has increased Edmonds City Council Approved Minutes November 5, 2018 Page 18 2018 Budget 2018 YE Estimate 2019 Recomm. Discussion Public Defender 330,080 624,530 275,000 352,070 DP91 —7%increase Liability & Property Ins 437,253 413,095 DP92 — large claim dropped from ex erience rating Fire District Contract 7,678,200 7,378,718 8,095,044 DP90 — 3.6% increase plus Est carryforward. Prisoner Care 620,000 620,000 650,000 DP94 - 3% increase SNOCOM 1,052,230 1,052,230 1,054,800 Debt Service 198,000 198,000 198,260 Stabilized for 2019 Interfund Transfers 1,863,370 1,863,3370 1,570,790 Review later Other ND Expenditures 1,894,137 1,464,547 1,050,352 Contact Scott James with questions Total $14,260,547 $13,289,118 $13,402,411 9 Decision Packages o DP #90 - 2019 RFA Contract ■ The Regional Fire Authority is in negotiations with its bargaining group • Until the labor contract is agreed to, the City will be billed at the 2017 rate of $7,378,718 ■ This decision package includes a 3% or $221,362 increase over 2017 costs for a 2018 estimated cost of $7,600,080, and ■ Additionally, this decision package includes a 3.6% or $273,603 increase over the 2018 estimated costs for a 2019 estimated cost of $7,873,682 o DP # 91 Public Defense Contract Increase ■ Due to having to keep in compliance with the standards for indigent defense • Change in our Judge and the number of motions and jury trials has increased Edmonds City Council Approved Minutes November 5, 2018 Page 18 ■ To keep up with the increased workload, the Public Defender has added an additional investigator and two additional social workers ■ We are recommending a 7.5% increase for 2019 to pay these additional costs, and • We are recommending a one-year contract extension and engage an RFQ process next year o DP # 92 2019 Insurance Allocation * The 2019 Insurance Premium is $22,565 lower than 2018 ■ The General Fund allocation is reduced by over $193,000 s The Street Fund 111 is increasing by $40,651 ■ The utilities allocation is increasing by $128,841 ■ The Equipment Rental Fund 511 is increasing by $3,005 COUNCILMEMBER MESAROS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO EXTEND THE MEETING UNTIL 10:15 P.M. MOTION CARRIED UNANIMOUSLY. Mr. James continued his presentation: o DP # 93 State Auditor Fee Increase ■ The State Auditor's Office has announced a 5% increase for 2019. We estimate our auditors cost to increase by $3,600 next year o DP # 94 Non -Departmental Baseline Adjustment ■ Three Membership increases: - $1,000 for AWC - $200 for Snohomish County. Tomorrow - $414 for Puget Sound Regional Center ■ Adding $15,000 to pay for Unemployment Benefits * Adding $30,000 to cover jail costs * Three assessment increases: - $5,450 for Snohomish County Emergency Radio System - $3,510 for Department of Emergency Management - $1,000 for Puget Sound Clean Air Assessment ■ Increase for transfer to LEOFF Fund 009 to cover increasing costs of Long-term care o DP # 95 Snohomish County Health District Contribution ■ Request would double the City's contribution to total $2 per capita for 2019 to help shore up the District's funding ■ Additional $1 contribution is contingent on the majority of Snohomish County Cities also contributing $2 per capita for 2019 o DP # 96 Enhance our Arts and Culture ■ Request is in response to City Council priorities shared previously ■ Request is for $75,000 and is intended to provide the Edmonds Public Facilities District with incremental operational funding • To enhance the Edmonds Center for the Arts Mr. James reviewed Staff's Recommended Changes: STAFF'S RECOMMENDED PROPOSED BUDGET BOOK CHANGES Item # Budget Book Page # Description Cash Increase ecrease GENERAL FUND 2 20 Culture & Recreation - Program Revenue $45,000 Impacts to General Fund Ending Cash $45,000 Fund 017 Marsh Restoration and Preservation 3 124 Add Donation Revenues $6,800 Edmonds City Council Approved Minutes November 5, 2018 Page 19 Impacts to Fund 017 Ending Cash $6,800 Fund 112 Street Construction 4 DP97 Correct pavement preservation expense for General Fund Transfer by increasing Fund 112 expense $500,000) Impacts to Fund 112 Ending Cash $500,000) EDMONDS HOMELESSNESS RESPONSE FUND 018 1 61 Move $250,000 Transitional Housing budget to REET Fund 125 $250,000 Impacts to Fund 018 Ending Cash $250,000 REET 2 FUND 125 1 167 $250,000 for Transitional Housing $250,000 Impacts to Fund 125 Ending Cash $250,000 Councilmember Mesaros referred to the list of key expenditures and suggested SNOCOM be changed to Snohomish County 911. Councilmember Mesaros inquired about financial savings due to the merger of SNOCOM and SNOPAC. Chief Compaan will research and respond. Councilmember Teitzel referred to DP 91 Public Defense Contract, recalling at the last Council meeting the Council had a lively discussion about the Lighthouse contract and their proposed 4%/annual increase which tracks closely with the 2018 CPI -W of 3.6%. The Public Defender has a 7.5% increase, approximately double the CPI -W, and asked how that increase was determined. Mr. James answered possibly that contract needs to rebid next year. The reasons for the increase include changes in the Judge, increase in the number of motions and jury trials, and an increased workload which required adding an investigator and two social workers. He said an RFP process would provide an understanding of what drives the costs. Mayor Earling said the 7.5% increase was the result of negotiations; their request was higher. Councilmember Buckshnis asked for the dollar amount represented by the 7.5% increase. She referred to the $93,740 Council Contingency budget that went away. Mr. James said $250,000 was included in the 2018 budget for the Council to allocate; $93,740 remained after Council allocations and it was not intended to be a carryover into 2019. Many of Council priorities have already been included in the 2019 budget. Councilmember Buckshnis referred to open space, recalling the Council voted to have $200,000 included in the CIP/CFP in Fund 125/126. She asked why that was in Non -Departmental and why it went away. Mr. James recalled last year the Council made two last minute amendments related to the lobbyist and for open space. It was included in the General Fund and has been moved to REET Fund. 2. PRESENTATION OF THE PROPOSED 2019-2024 CAPITAL FACILITIES PLAN/CAPITAL IMPROVEMENT PROGRAM Due to the late hour, this item was rescheduled to the November 13" Council meeting. 8. STUDY ITEM 1. VIDEOTAPING OF COUNCIL COMMITTEE MEETINGS Due to the late hour, this item will be rescheduled. 9. MAYOR'S COMMENTS Mayor Earling commented the visit by the Hekinan delegation was very successful. He thanked Councilmembers who attended the festivities, commenting it was fun to see the interaction during the week. 10. COUNCIL COMMENTS Edmonds City Council Approved Minutes November 5, 2018 Page 20 Councilmember Teitzel commented one of citizens' most precious rights is the right to vote. He was discouraged that only two-thirds of county residents voted. Tomorrow is election day; and he urged residents to vote and not let others make decisions for them. Councilmember Tibbott thanked citizens who came to tonight's meeting to provide their viewpoint on the Housing Strategy. He listened and has had a number of personal interviews over the past month. He emphasized the strategy has not yet come to the Council and he expected it would be revised significantly. He looked forward to a revised strategy and to additional input from the Council and citizens. Council President Nelson reported Councilmembers Fraley-Monillas and Mesaros accepted his request to begin an evaluation process in early 2019 for Lighthouse Law Group. He will propose a one-year extension to the Lighthouse Law Group contract. Councilmember Fraley-Monillas Hekinan commented the Hekinan delegation was a marvelous group. She attended the bench dedication and the reception that six of seven Councilmembers attended. She referred to gifts from the Hekinan delegation that she distributed to Councilmembers, an envelope with their picture and their name in Japanese and other small gifts. In an effort to raise awareness, Councilmember Fraley-Monillas reported another citizen was hit trying to cross the 7 lanes of Highway 99 because there is nearly mile between crosswalks from 238" and 228". Councilmember Mesaros reported last Monday he hosted a group Webelo Scouts, nine scouts, one sibling and seven parents, from Westgate Elementary on a tour of City Hall and sitting at the Council dais. He relayed several recognized Council President Nelson as their friend's father. Councilmember Mesaros echoed Councilmember Tibbott comments regarding the Housing Strategy. He was pleased with the feedback the Council has been getting and has also had a number of individual meetings and he appreciated audience comments on both sides of the issue. He hoped everyone who commented has read the Housing Strategy so they have factually correct information. Councilmember Johnson encouraged everyone to vote. Mayor Earling relayed the delegation also left another box of gifts for Council with Executive Assistant Carolyne LaFave. 11. CONVENE IN EXECUTIVE SESSION REGARDING PENDING OR POTENTIAL LITIGATION PER RCW 42.30.I10(1)ti] This item was not needed. 12. RECONVENE IN OPEN SESSION. POTENTIAL ACTION AS A RESULT OF MEETING IN EXECUTIVE SESSION This item was not needed. Edmonds City Council Approved Minutes November 5, 2018 Page 21 13. ADJOURN With no further business, the Council meeting was adjourned at 10:19 p.m. �Lw DAVID 0. EARLING, MAYOR PASSEY, ITY C K Edmonds City Council Approved Minutes November 5, 2018 Page 22