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
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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.
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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
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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.
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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
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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
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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
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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
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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.
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DAVID 0. EARLING, MAYOR PASSEY, ITY C K
Edmonds City Council Approved Minutes
November 5, 2018
Page 22