Loading...
20181120 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES November 20, 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 ORDER/FLAG SALUTE STAFF PRESENT Al Compaan, Police Chief Phil Williams, Public Works Director Carrie Hite, Parks, Rec. & Cult. Serv. Dir. Patrick Doherty, Econ. Dev & Comm. Serv. Dir. Shane Hope, Development Services Director Scott James, Finance Director Mary Ann Hardie, HR Director Dave Turley, Assistant Finance Director Kernen Lien, Environmental Program Mgr. Rob English, City Engineer Jeff Taraday, City Attorney Nicholas 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 5th Avenue North, Edmonds. The meeting was opened with the flag salute. 2. ROLL CALL Deputy City Clerk Nicholas Falk called the roll. All elected officials were present. 3. APPROVAL OF AGENDA COUNCILMEMBER TIBBOTT MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. 4. APPROVAL OF CONSENT AGENDA ITEMS COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: 1. APPROVAL OF COUNCIL MEETING MINUTES OF NOVEMBER 13, 2018 2. APPROVAL OF CLAIM CHECKS, WIRE PAYMENT AND PAYROLL CHECKS 3. ACKNOWLEDGE RECEIPT OF CLAIMS FOR AN UNDETERMINED AMOUNT 5. AUDIENCE COMMENTS Edmonds City Council Approved Minutes November 20, 2018 Page 1 Rebecca Anderson, Edmonds, recalled last week she and three other Edmonds residents spoke and submitted a proposed revised plan for the Housing Strategy adoption process along with a problem list. They were hopeful it would provide direction to begin more detailed, open and collaborative process for drafting'and adopting this critical policy direction. This is a passionate topic among residents because it affects everyone. Neighboring cities have huge development projects underway that will impact Edmonds residents' quality of life. She was encouraged last week when Councilmembers weighed in on the strategy; they clearly they care about Edmonds. While she did not appreciate the verbal attacks and not taking personal responsibility for how the process reached this point, many suggestions and opinions were voiced, including removing it from the Comprehensive Plan and waiting for things to calm down before trying to create another Housing Strategy. While this may seem a good solution in the short term, it will not solve what is currently happening in the City. Construction has not stopped while the Housing Strategy is being created; permits are still being issued, short platting continues, high density zero lot line projects are being constructed. Without a vision for the City in addition to the Housing Strategy framework, Edmonds will end up looking like it has been thrown together. She spoke in favor of a well -thought-out strategy with a better process that includes public input so the housing needs of Edmonds can be address together. She encouraged the Council to do the hard work and not to give up. Ferrell Fleming, Executive Director, Edmonds Senior Center, complimented City staff particularly Parks & Recreation Director Carrie Hite and City Attorney Jeff Taraday on the work they did to reach this point. Mr. He also complimented the City's Finance Committee, Councilmembers Teitzel and Buckshnis, for their diligent work during the process. Two recent meetings have been held with key staff involved in the permitting process and he appreciated their wholehearted commitment to enable the center to remain on schedule. The Edmonds Waterfront Center will be the culmination of the 50 -year partnership between the City and the Senior Center. A hallmark of the partnership has been that both parties continue to keep the big picture in mind: creating and maintaining an innovative senior center for the many older citizens of Edmonds and the region, making a waterfront facility available for community use, and creating a waterfront regional park with convenient beach access and parking. The partnership has been effective because the strengths of the municipal corporation and the 501(c)(3) non-profit corporation have has been allowed to take center stage when appropriate. All the county senior centers and many cities respect and even envy the partnership that has accomplished so much. In the 1960s and 1970s, the partnership enabled the City to acquire the property and upgrade it to its present configuration. More recently, the City had $10M in its Capital Improvement Plan for many years to replace the Senior Center; that item has been removed. The City recognized in its 2013 Strategic Action Plan that the Senior Center would be much better at raising the money to build the Waterfront Center and recognized the desperate need for a new building and to move quickly. The Senior Center looks forward to strengthening and enhancing the partnership with the City for the benefit of everyone and believes the proposed amendments to the ground lease are a step- in that direction. 6. PUBLIC HEARINGS 1. PUBLIC HEARING OF THE PROPOSED 2019-2024 CAPITAL FACILITIES PLAN/CAPITAL IMPROVEMENT PROGRAM City Engineer Rob English reviewed: Transportation Capital Proms • DP 97 — 1,500,000: 2019 Pavement Preservation Program o Overlay 3.7 lane miles 0 20 curb ramp upgrades o $900,000 REET 125/126 o $500,000 General Fund o $100,000 Street Fund 112 Edmonds City Council Approved Minutes November 20, 2018 Page 2 r DP 98 - $251,850 - 238th Island and ADA Curb Ramps o $211,000 CDBG grant o $50,000 REET 0 238th island -ADA compliant walkway and landscaping 0 12 curb ramp upgrades • Citywide Pedestrian Enhancements o $1.49M federal grant ■ DP 99 - $429,000 - Additional funding for replacement of pole and mast arm - Awaiting decision on TIB grant which would replace DP 99 ■ DP 110 - $1,181,873 (carry -forward) • 9 intersections ■ Signal conversion at SRI 04/232nd • HAWK Signal at SR524/84' Ave 7 Rectangular Rapid Flashing Beacons ■ 23 curb ramps • DP 100 - $50,000: 2019 Ped Safety Program • DP 101 - $70,000: Traffic Signal Upgrades • DP 102-$42,500: Audible Pedestrian Signals ■ DP 103-$20,000: Guardrail Installations • DP 104 - $110,000: Admiral Way Ped Crossing • DP 105 - $6,043,500: Dayton 3rd Ave to 9th Ave o [$200,000] Dayton Sidewalk west of 8th Ave ■ Awaiting TIB grant • DP 106 - $1,290,870: 84th Ave Overlay (220th -212th) • DP 107 - $10,000: 76th Ave/212th Intersection • DP 108 - $8,750: 238th St Walkway (Hwy99-SR104) • DP 109 - $437,380: Hwy 99 Revitalization Phase 1 (220th -224th) o Begin 30% design/environmental review • DP 111 - $3,000,000: Waterfront Connector o Begin final design/environmental design o $6M State funding to be available in July 2019 • Requesting early funding authorization utility Funds • Five Corners Reservoir Recoating Project o DP 13 - $492,400 (additional funding for additional costs) and DP 22 - $1,302,600 (carry- forward) • 1.5 MG reservoir to be completed by Dec 2018 ■ Working with contractor on extra costs ■ 3.0 MG reservoir to be completed by June 2019 ■ Hoping better condition than 1.5 MG but unknown ■ Additional funds will be required to complete project, reason for two decision packages Water Utility Capital • DP 19 - $870,000: Swedish & 76`h Waterline • DP 20 - $300,000: Waterline Overlays • DP 21 - $15,000: 2019 Waterline Replacement ■ Dayton Street Pump Station o DP 25 - $500,000 Edmonds City Council Approved Minutes November 20, 2018 Page 3 ■ Awaiting notification from FEMA on grant application ■ Also requesting $500,000 from legislature due to benefits to Marsh and to address flooding in ferry holding lanes ■ Decision package will provide stormwater funding. in lieu of grant or legislature funding o DP 28 - $907,000 (carry -forward) o $2.4M in sewer capital funds Storm Qtiliq Capital o DP 26 - $375,000 Ballinger Regional Facility Pre -design o DP 27 - $1,000,000: Phase 1 replacement project o DP 29 - $76,125: Seaview Infiltration Project o DP 30 - $441,000: Citywide Drainage Replacement o DP 32 - $200,000: Stormwater Comprehensive Plan Mr. Williams reviewed: • DP 35 - $3,670,438 (City's share = $1.25M) o Phase 6 Carbon Recovery Design o Diagram of P -Five Pyrolisis System that will replace incinerator Mr. English reviewed: Sewer Utility Capital • DP 38 - $500,000: Lake Ballinger Trunk Sewer Study o Includes pipe condition assessment • DP 42 - $165,000: Lake Ballinger Trunk Study (CF) • DP 39 - $5,000: 2018 sewer replacement • DP 40 - $706,680: CIPP Sewer rehabilitation • DP 41 - $75,000: LS#1 Metering & Flow Study • DP 43 - $75,000: 2019 Sewer Overlay • DP 44 - $5,000: 2019 Sewer Replacement Project Parks & Recreation Director Carrie Hite reviewed: Parks CIP/CFP 2019 o DP 114 - $4,298,266: Waterfront Development/Promenade/Walkway ■ $3.1M carry -forward ■ Other funding sources include REET 125/126, park impact fees and State grants ■ Includes '/z the cost of frontage improvements (other half is in DP 128) • DP 115 - $1,320,000: Civic Design Development, permitting o Designing around the Boys & Girls Club building footprint o Opportunity for ADA accessible playground o Anticipate returning to City Council in February with schematic design • DP 114 - $100,000: Edmonds Marsh — Daylighting Willow Creek o Council update January 22, 2019 o Need WSDOT approval of MOU to daylight creek through Unocal property o Edmonds Marsh estimated timeline o WSDOT's Cleanup standards less than City's o List of grants have applied for o List of potential funding sources Parks CIP 2019 • DP 115 - $40,000: City Park Walkway (along north side of field from 3rd Avenue to spray pad) ■ DP 116 - $155,000 (carry -forward): Community Garden Edmonds City Council Approved Minutes November 20, 2018 Page 4 • DP 117 - $20,000: Fishing Pier Parking Lot • DP 118 - $120,000: Seaview Play Area • DP 119 - $35,000 (carry -forward): City Gateway Replacement • DP 120 - $175,000 (Verdant Grant): Outdoor fitness zone at Mathay Ballinger Park, includes programming and classes • DP 121 - $20,000: Flower Pole Replacements • DP 122 - $50,000: 4th Avenue Cultural Corridor • DP 123 - $10,000: Yost Park/Pool • DP 124 - $20,000 (carry -forward): Mathay Ballinger Park Trail • DP 125 - $200,000: Land Acquisition • DP 126 - $250,000: Waterfront Center Support — Parking Lot, frontage improvements Mr. English reviewed the CIP/CFP Schedule: • July o City Staff Begins Development of Capital Budgets • August/September o Submit Proposed Capital Budget to Finance o Prepare Draft CFP and CIP • October o Planning Board; Public Hearing (October 10th & 24th) • November/December o Nov 13' Presentation o Nov 20th Public Hearing o Adopt CFP w/ Budget into the Comprehensive Plan Ms. Hite highlighted a chart of grant awards 2012-2018 for Parks and Public Works Councilmember Buckshnis said because the Council did not review the CIP/CFP page -by -page, she will provide information to the Parks & Public Works Committee. She suggested updating the Edmonds Marsh project narrative. As a member of WRIA 8's grant funding committee, she said they have not received a grant request from Edmonds for the last three years. She recognized the City has applied to NOAA and she will reach out to them. She questioned an email from staff stating grant funds have been denied. Public Works Director Phil Williams said the City has not applied because they have been told it would be a waste of time until the City can show a property interest. Unocal refused to allow access to the property during cleanup. Mr. Williams anticipated a property transfer to WSDOT early in 2019 will make it much easier to discuss with WSDOT the City's interest in taking Willow Creek across the property. To be competitive for grants, the City needs an agreement from the land owner (WSDOT) stating they support the City's project. The funding agencies do not want to invest in a project that the City does not have a property interest in. The State paid $8M for property and have made it clear they intend to be paid if someone else wants to buy it. The City only needs the ability to bring Willow Creek across the property, not own the property. He suggested the City may not even want to own the property There will not be a "no -further action" letter issued to the State from Ecology saying the property is cleaned up to the point that no further action is required, but that leaves residual liability. Councilmember Buckshnis said many Parks & Recreation departments take on large projects like this; she has seen cities support multimillion projects; Edmonds' staff does not seem to be supportive because supposedly someone told staff not to apply. She found it difficult to believe WRIA 8 was advising staff not to apply because the City does not own the property; WRIA 8 is all about orca and salmon recovery. Mr. Williams said the City does not need to own the property, there just needs to be an agreement with the Edmonds City Council Approved Minutes November 20, 2018 Page 5 current land owner to build across on property, similar to any other municipal project. He anticipated the City could obtain that agreement from WSDOT. The State issued a new draft Ferry plan that removed all reference to Edmonds Crossing which opens the door to have a conversation about a land owner agreement to daylight Willow Creek across the property, but that is not possible until WSDOT owns the property. Councilmember Buckshnis said some of the information in Mr. Williams' email was incorrect; she will confer with her colleagues at WRIA 8. Councilmember Buckshnis said the $3M Meadowdale request is a high priority for WRIA 8 even though they have no agreement with BNSF to redo the trestle. WRIA 8 is attempting to help them get them $3M. Ms. Hite said Salmon Recovery Funding (SRF) Board funding is managed through the Recreation and Conservation Office (RCO). Josh has been the City's grant rent at RCO for quite some time; he specifically said in order for the City to be competitive in that grant cycle, the City needs the Landowner Acknowledgement form that allows the City to build through the property. Staff is waiting to apply and have been able to extend the 2014 grant which has enabled design to continue but the City is not competitive for the next stage of design that goes through that property. Mr. Williams assured staff is excited about the project and doing whatever they can to make it happen as quickly as possible. The timeline has been compressed and may not be realistic. Councilmember Fraley-Monillas referred to the list of marsh grants, commenting the City has not received any grants since 2016. Ms. Hite said the RCO grant has been extended and funds added, but the City cannot apply for additional grant funding until WSDOT provides the Landowner Acknowledgement form. Councilmember Fraley-Monillas observed staff has applied for funding from NOAA. Councilmember Teitzel referred to schematic design for Civic, relaying he recently spoke to a number of citizens and the Council received several emails about parking. He recognized that issue was discussed with the citizen group advising the project design as well as at public hearings and during Council discussions. Although no parking is currently planned at Civic, he asked how the design would be affected if parking were added, whether it would delay the design and/or increase the cost. Ms. Hite answered it would do both, create a delay and increase costs. There is also a limited amount of space on the site where parking can be added based on the restrictions from Snohomish County and the State for $1.5M in grant funds. Ms. Hite explained the two acre area where parking could be accommodated would be on northwest where the tennis and multiuse courts are located, the Boys & Girls Club and the entry plaza with the water feature at the grand entrance. Those two acres can be used for a community facility, parking, or other impervious surface. The restrictions on the remainder of the land do not allow parking and restrict the amount of impervious surface. Councilmember Teitzel asked if the tennis courts could be relocated if parking were sited on the northwest corner. Ms. Hite said it would require redesign. The City has applied for grants based on the master plan tied to this design; removing recreational components could impact the grants, both the Hazel Miller and the State grants. Councilmember Johnson asked what staff has learned from Shannon & Wilson related to sea level rise and how that affects the coastline and the marsh project. Ms. Hite responded information was presented by Shannon Wilson who did hydrology modeling using the 2050 and 2100 expected sea level rises; in both, with the daylighted creek open and the amount of water that enter the marsh, it was likely some flooding would occur at Harbor Square. Shannon & Wilson considered tide gates and levees and have indicate the seawalls likely will be breached by 2100 which will require building up the walls in the out years to maintain the waterfront walkway and waterfront areas. Mr. Williams said the impacts of sea level rise go well beyond marsh; a lot of areas along the waterfront will be very wet in 2100 unless something is done between now and then. Councilmember Johnson asked Edmonds City Council Approved Minutes November 20, 2018 Page 6 what staff learned from Shannon & Wilson about the Waterfront Center. Ms. Hite responded Shannon & Wilson did not model the Waterfront Center, but she recalled the Waterfront Center design team looked at the 2100 projections and raised the building three feet in their design. Councilmember Johnson said it seems counterintuitive to upgrade the marsh and then have to install tide gates and levees, noting it was really a question of elevation. Ms. Hite agreed, the marsh will likely be lower than the sea level rise. Mr. Williams said there is also a slow but ongoing settlement of the land surface; water is rising and the land is slowly settling and both create negative impacts. Councilmember Tibbott referred to the sidewalk crew anticipating in the budget and asked whether that crew could accomplish DP 115, the walkway in City Park and how the $40,000 would be used for that project. Mr. Williams answered if the sidewalk/concrete crew is approved in the budget, the next challenge will be to find the right people in this market to do the work. That same question has been posed with regard to 10-15 other projects, most of which are not sidewalk segments which was the original focus of that crew. Once the crew is hired, a more meaningful conversation can occur. The City has short and long walkway lists, $6M in ramp upgrades, other sidewalk improvements, in addition to other projects such as park walkways. The park walkway would likely not be at the top of the priority list for this crew based on the funding request, but it could be considered. Councilmember Tibbott asked how the City Park walkway would be completed. Ms. Hite answered it could be done by a private contractor, but the intent was to do it in-house with the park crew. It is more like a park path with pervious asphalt rather than a sidewalk. Councilmember Fraley-Monillas referred to an email from citizens relaying the neighborhood's concerns with parking for Civic. She asked whether $40,000/parking space was accurate for a parking garage. Mr. Williams said he has heard $30,000-$40,000 and higher. Sound Transit has had the most recent experience. If the property is already owned, the cost would be less, as purchasing property adds to the cost. He summarized $45,000/parking stall was not unrealistic. Councilmember Fraley-Monillas relayed a suggestion in the email to use $75,000 from the parking study to build a 30-50 space garage. She wanted to be clear that although a garage would be nice to have, it would be expensive; $45,000/space for 50 spaces would exceed $2M. Mr. Williams said the parking study will identify how many available parking spaces currently exist, the extent to which they are used, the demand for parking, whether there are partners, identify appropriate locations, etc. Councilmember Fraley-Monillas commented there are churches within a few blocks of Civic where there was potential to lease parking. She recognized parking was an issue; festivals such as the Taste, 4' of July, etc. result in vehicles parking in neighborhoods as well as the use of shuttles. That said, she was not sure a parking garage was financially feasible. Mr. Williams said the Port is considering a garage on their property near Railroad & Dayton. If the parking study is approved in the budget, he anticipated working with the Port to coordinate efforts as the Port will also be hiring a consultant. Councilmember Teitzel referred to citywide pedestrian enhancements, nine projects are highlighted, however, none of them are on Highway 99. Pedestrians are crossing 7 lanes of 50 mph traffic on Highway 99 today; he was feared waiting to install a crosswalk in the area of 238th until the Highway 99 revitalization process which could take 8-10 years would result in more injury and fatality accidents. He suggested a crosswalk project in that area the nearer term. Mayor Earling opened the public participation portion of the public hearing. Laurie Sorenson, Edmonds, said she has the privilege of looking at the marsh and Puget Sound every day and she is concerned about orcas not getting enough food. The marsh used to have salmon. The governor created a taskforce and she did not see the Edmonds Marsh listed in their recommendations. The taskforce Edmonds City Council Approved Minutes November 20, 2018 Page 7 has $60M to spend on investment and restoration, acquisition and habitat. She suggested talking to the governor about daylighting Willow Creek and/or get the marsh included in the task force's recommendation. Jim Van Tighem, Edmonds, spoke in favor of including an ADA accessible playground at Civic Field. He supported turning Civic Field into a new City park and most people think it is a fantastic idea. The closest ADA playground is at the new Miner's Corner Park in Bothell. There is a new ADA accessible playground in Bellevue, Inspiration Playground, in Bellevue City Park next to Bellevue Square and one is proposed in Mountlake Terrace on the former golf course property. There are no ADA accessible playgrounds this area although two schools, Maplewood and the Alderwood Early Learning Center have programs for disabled children. An ADA playground can be used by all kids. He recalled when visiting his grandchildren in Los Angeles, they visited a park with an ADA playground and it was very popular. If the City does pursue an ADA playground at Civic, there will need to be a parking lot with spaces for vans and small buses that bring children to the park. Joe Scordino, Edmonds, retired fisheries biologist, said the past few weekends he has been out with Students Saving Salmon doing surveys in Shell Creek. This last weekend, during a two-hour period, they saw more salmon than they did all last year. Salmon will come back given the opportunity. Although there are passage problems in Shell Creek, the salmon are returning, getting past the partially blocked culvert and Coho salmon were observed spawning in the area near Holy Rosary Church. Salmon could also spawn in Shellabarger and Willow Creek if the daylighting project were constructed. He suggested the CIP narrative may need to be rewritten to show the commitment. The CIP does not take a very aggressive approach and it contains outdated information which leads the public to believe the project is not moving forward. He said many of the concerns could be address by updating the CIP/CFP to illustrate progress and opportunities. Susan Paine, Edmonds, was excited about putting together a plan for the Unocal property and having it be adjunct to the Edmonds Marsh and daylighting of Willow Creek. She spoke in favor of a funding package to buy all or some of the WSDOT property when it becomes available next year which means it needs to be included in the 2019 budget. There is a great deal of interest in the Edmonds Marsh, even outside this community and there are people in the community who have access to resources and would like to contribute to make this happen. It would help with sea level issues and 2050 is not far away. She has UW resources that would be interesting to bring in including modern engineering design. Hearing no further comment, Mayor Earling closed the public participation portion of the public hearing. Councilmember Teitzel asked if the City should pursue a right of first refusal agreement to formalize the City's interest in acquiring the WSDOT property if the opportunity arises. Ms. Hite answered that is an option. WSDOT knows the City is interested in bringing the creek across the property whether or not the City owns the property. It would be great to be able to do that and not own the property as it will be expensive. WSDOT purchased the property for $8M years ago. The City could negotiate a right of first refusal which would allow the City to be first at the table if WSDOT does decide to sell the property. Councilmember Teitzel asked if there was a downside to a first right of refusal. Ms. Hite answered no, the City can always opt not to purchase the property, but it gives the City negotiating power. Mr. Williams said one downside is it was a clean-up site, Unocal has spent a fortune to clean up the site to a certain standard, which would probably not be the standard the City would require in areas where excavation would be done. Whoever owns the property has that liability including if regulations change in the future, the costs related to its former use and contamination are the owner's liability. He suggested adding a right of first refusal to the land owner agreement that will be executed with WSDOT. Edmonds City Council Approved Minutes November 20, 2018 Page 8 Councilmember Buckshnis commented sometimes public shaming/exposure works, this is a poster child for the environment. The governor is focused on orca and salmon recovery. She requested next year's presentation include reviewing the CIP/CFP in its entirety rather than just decision packages as she has several questions related to the CIP/CFP that are not decision packages. She asked if the Frances Anderson Center roof replace was completed, noting there is $391,000 in 2019. Mr. Williams answered staff has been working with a designer on a bid package for the oldest part of the Frances Anderson Center roof. The intent is to do the work in warm weather in 2019. Councilmember Buckshnis inquired about $300,000 for exterior painting of Frances Anderson Center. Mr. Williams said that will be done with the City's own resources, not grant funds, and has proven to be a bigger project than expected, requiring repair work before repainting. Councilmember Buckshnis said she will send other questions to staff. 2. PUBLIC HEARING ON THE 2019 PROPERTY TAX ORDINANCE Finance Director Scott James reviewed: • Where do taxes go? Taxes 2017 2018 County 8.6% 7.4% EMS 4.8% 4.1% Library & Hospital 4.9% 4.3% City 12.3% 10.7% Edmonds Schools 47.0% 44.7% RTA 2.5% 2.1% State Schools 19.9% 26.7% Where does the City get money? o Property Tax 26.2% o Sales Tax 19.1% o Service Charges 17.6% o Grants and Contributions 14.3% o Utility Tax 12.7% o Investment Earnings 1.4% o Miscellaneous 1.9% o Excise Tax 10.4% ■ Where does the City spend its money? ■ Public Safety Costs Increases New Public Safety Budget Requests for 2019 2019 2018 Public Safety $24.2M $23.5M General Government $12 AM $12.2M Transportation $1.9M $2.3M Culture & Recreation $4.7M $5.4M Economic Environment $1.7M $1.7M Mental & Ph sical Health $0.4M $0.4M Other $0.2M $0.2M ■ Public Safety Costs Increases New Public Safety Budget Requests for 2019 2019 South County Regional Fire 3.6% increase $273,600 SERS and DEM Increase $ 8,443 New Student Resource Officer $14424 Total 431,467 Revenue Increases 1% Regular Property Tax Increase $103,687 Edmonds City Council Approved Minutes November 20, 2018 Page 9 1% EMS Levy Increase $ 39,751 Total $143,438 Ga $288,029 • 2019 Regular Property Tax Levy 0 2019 budget includes 1% property tax increase o Assessor shows City of Edmonds property values increasing 12.6% (increase in AV before adding new construction o New construction adds $67,202,400 AV • 2019 Regular Property Tax Calculation for the City of Edmonds Description Amount 2018 Levy Amount $10,368,698 Add New Construction $ 76,510 Add Allowance for Adjustments $ 10,369 2019 Starting Point $10,455,577 Add 1% of 2018 Le $ 103,687 Total 2019 Le $10,554,? 44 • Graph of Assessed Value History 0 2010: $6,955,482,717 0 2013: $5,545,239,847 0 2019 estimated: $10,317,922,910 • Graph of Tax Rate History 0 2010: $1.34900774 0 2013: $1.76148784 0 2019 estimated: $1.02339044 • Graph of Assessed Value and Tax Rate Comparison o As AV goes down, rates go up o As AV goes, up, rates go down • 2018-2019 EMS Tax Levy Overview o In 2008, Citizens voted to make the EMS Levy a Permanent $0.50 Levy o During 2010 —2013 we saw our Assessed Property Values decline 31% o In a declining AV environment, the City's EMS Levy Revenue also declined o EMS Levy cannot exceed $0.50 • Graph of Levy Rate History 0 2010- 2016: $0.50 0 2017-2018: Declining 0 2019 estimated: $0.39 • 2019 EMS Property Tax Calculation for the City of Edmonds Description • Amount 2018 Levy Amount $3,975,140 Add New Construction $ 29,332 Add Allowance for Adjustments $ 3,975 2019 EMS Levy Starting Point $4,008,447 Add 1% of 2018 Le $ 39,751 Total 2019 Le $4 9 Graph of Implicit Price Deflator CPI -W and CPI -U 2014-2018 Year IPD CPI -U CPI -W 2014 1.59% 2.20% 2015 1.60% 1.10% Edmonds City Council Approved Minutes November 20, 2018 Page 10 2016 -.095% 2017 2018 2.17% 3.30% 3.60% ■ Impacts of Tax Increases 0 2018 Average Residence Value is $527,900 0 1% Regular Tax Levy Increase= $5.40 0 1% EMS Levy Tax Increase= $2.07 o Average Residence would pay $7.47 in 2019 or about $0.62 per month extra Councilmember Fraley-Monillas recalled last year she requested the EMS levy be separated from the property tax levy, but they are combined in the proposed ordinance. Mr. James agreed the ordinance in the Council packet combines the regular property tax levy and the EMS levy. The ordinances can be revised into two ordinances and scheduled for approval on next week's Consent Agenda. COUNCILMEMBER FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO SEPARATE THE EMS LEVY AND PROPERTY TAX LEVY. MOTION CARRIED UNANIMOUSLY. Councilmember Johnson referred to the opportunity to bank the increase and asked Mr. James to explain the process and the impact that would have. Mr. James said when the Council elects not to impose the 1% increase, it can be banked for future use. The City currently has approximately $66,000 in banked capacity. Councilmember Tibbott asked if the 3.6% ($273,600) increase for South County Regional Fire Total was the total increase. Mr. James answered 3.6% is the estimate for 2019. Councilmember Tibbott asked the cost of South County Fire. Mr. James referred to budget book page 57, where the Fire contract is estimated to be $8,095,000 in 2019. South County Fire has not yet settled their 2018 contract; 3.3% is the estimated increase for the 2018 contract plus 3.6% in 2019. Until the contract is settled, the amounts are estimates. Councilmember Tibbott observed that is far more than the EMS levy covers and how that gap is covered. Mr. James said the City has received record sales tax revenues this year because the economy is so strong. As Mayor Earling and he have mentioned, although the economy is still healthy, there are signs that it is slowing. Development related revenues this year are half of last year, meaning projects in the pipeline for new construction are low. However, car sales are quite strong. Councilmember Tibbott summarized sales tax is one of the revenue sources to cover the gap and there is potential those revenue sources may decline. Mr. James commented property tax is a stable source whereas sales tax is not stable. He recalled during the downturn, sales tax revenue was one of the first to be impacted, after development -related revenues. Councilmember Buckshnis inquired including $149,424 for the new School Resource Officer when $60,927 of that amount will be reimbursed. Mr. James answered the reimbursement is based on a full year; he was uncertain when the SRO will be hired or when the school district will start paying. The City will hire the officer, he/she will work for the City and then deployed to the school in September. He did not have a hard number for that time period, so he used $149,424 to avoid confusion. Councilmember Buckshnis asked about the 50/50 split. Mr. James said it is not quite a 50/50 split for the first year as the officer will work for the City for part of the year. Mayor Earling opened the public participation portion of the public hearing. There was no one present who wished to provide testimony and Mayor Earling closed the public participation portion of the public hearing. Council President Nelson commented there are things the City can and can't control such as the City can't control the legislature increasing property tax rates 16%, higher car tabs, public voted increases for Sound Transit. However, the City can control utility taxes and property taxes. When all the taxes citizens pay are Edmonds City Council Approved Minutes November 20, 2018 Page 11 combined, this is just one more thing they have to pay. Everyone he hears from is at their breaking point. Although the proposed increase may not seem like much, the City needs to stop looking at it as a small, insignificant thing. In researching the Department of Revenue website, there no guidance about decreasing property taxes, only increasing property tax. He proposed a I% cut in property taxes to reduce the amount of revenue the City collects. Councilmember Fraley-Monillas understood the EMS levy, but in participating on housing committees and hearing the comments, it is clear seniors, veterans and the disabled are being taxed out of their houses and often have to choose between mortgage, food and medicine. Philosophically she has a hard time passing a property tax increase, even a 1% increase, when citizens are saying they cannot afford their taxes and they are being taxed out of their homes. She was happy to pass the EMS increase because it is clear the rate has declined but she was uncomfortable with increasing property taxes for things like increasing reserves and spending money on all kinds of different things. Mr. James recalled in 2003, a former Public Works Director thought it prudent to reduce utility tax rates. That is still hurting the City today; a series of rate increases have been necessary to make up that different. The property tax increase generates $103,000; the City is spending more than that and adding things without new revenue. He suggested the Council reconsider the proposed I% property tax decrease, pointing out the economy has peaked and he did not expect the economy to continue to be as strong in 2019 or 2020. Councilmember Buckshnis asked whether the Council could reduce property taxes 1%. City Attorney Jeff Taraday said he's never heard of it being done but he thought it could be. Councilmember Buckshnis preferred to have separate ordinances for the 1% increase in the EMS levy and the 1% increase in the property tax levy. Mr. James said the City has until November 30 to inform Snohomish County Assessor; whatever the Council approves, the assessor is informed and homeowners' property tax bills reflect that action. Mr. Taraday said he wanted to research how a decrease in the 2019 property tax levy would affect banked capacity for future years. One of the suggestions is to develop several ordinances the Council could choose from next week. If that suggestion has Council consensus, it would be helpful to have a range of the lowest and highest and amounts in between. Councilmember Buckshnis commented the maximum increase is 1%. Councilmember Fraley-Monillas said another option is to not increase or decrease the property tax levy. Councilmember Mesaros commented there are three options, 1) increase the EMS levy 1%, 2) increase the property tax levy 1%, and 3) decrease the property tax levy 1%. If the Council did not approve any of those options, the property tax remains the same. Mr. James said a fourth option is banking the increase and a fifth option is the status quo. The Council must pass a property tax ordinance regardless of the amount. Mr. Taraday summarized the options for the property tax levy: 1. Decrease without banking 2. Decrease with banking 3. No increase without banking 4. No increase with banking 5. Increase 1% or another percentage Councilmember Mesaros said the Council could amend the ordinance to change the amount of the increase/decrease. Mr. Taraday said a numerical adjustment could be made at the meeting; it is not just the rate that is changed, the levy amount requires additional calculation. The more direction the Council can provide tonight, the better. Councilmember Johnson asked if last year was the first year the EMS levy was increased. Mr. James answered no. Councilmember Johnson asked when the Council began increasing the EMS levy 1%. Mr. Edmonds City Council Approved Minutes November 20, 2018 Page 12 James answered to his knowledge, it was raised in 2014 and every year since. Councilmember Johnson was comfortable with raising the EMS levy and assumed most Councilmembers were agreeable. The property tax levy has always been an issue; some years the property tax levy has been increased and some years it has been banked. The Council has never considered no action or decreasing it. Last year was a 4-3 decision and she expected it to be a contentious decision this year. Mr. James said the ordinances will not be in packet because the packet will be distributed tomorrow. Mr. Taraday offered to email the ordinances to Councilmembers on Monday for review. That was agreeable to the Council. 3. 2019 PROPOSED BUDGET PUBLIC HEARING Mayor Earling opened the public participation portion of the public hearing. There was no one present who wished to provide testimony and Mayor Earling closed the public participation portion of the public hearing. Finance Director Scott James explained the reason for holding a public hearing is to hear from citizens. He thanked the four Councilmembers who submitted budget amendments as it is important for citizens to see what the Council is thinking and to provide an opportunity for citizens to comment on the amendments. He encouraged Councilmembers to submit any other amendments to staff. 7. STUDY ITEMS 3. COUNCIL BUDGET AMENDMENTS DISCUSSION Finance Director Scott James reviewed: COUNCIL'S BUDGET CHANGES Item Budget Cash Submitter & # Book Description Increase Request # Page # (Decrease) GENERAL FUND 001 1 57 Reduce City's SnoCo Health Dist Contribution to $0.50/pp $20,815 Fraley- Monillas #1 2 57 Carryfoward Unallocated 2018 Council Contingency 93,740 Buckshnis #1 3 DP#60 Remove Tree Board Minute Taker $1,500 Buckshnis #2 4 101 New DP — Add Tree Board Supplies for brochures 1,000) Buckshnis #3 5 DP#96 Remove ECA "Enhance our Arts & Culture" contribution 75,000 Buckshnis #4 6 DP#47 Remove Federal Lobbyist 72,000 Buckshnis #5 & Nelson #5 7 101 New DP — Add new position "City Arborist" $147,000 Buckshnis #6 8 51 New DP — Add increase for Court Securi $33,000 Buckshnis #7 9 DP#58 Remove Five Corners Consultant $30,000 Buckshnis #8 & Nelson #3 10 DP#65 Remove Youth Services Coordinator $53,717 Buckshnis #9 & Nelson #8 11 DP#77 Remove Car for SRO — negotiate $65,000 Buckshnis #10 12 DP#49 Remove Increase for PIO/Communications Specialist $18,000 Buckshnis #11 & Nelson #6 13 33 New DP — Add Carryforward for Professional Services $132,000 Buckshnis #12 14 DP#3 Remove Contract Project Management Support $45,000 Teitzel #1 & Nelson #1 15 DP#53 Remove National Citizen Survey $22700 --Of Teitzel #2 16 DP#95 Reduce City's SnoCo Health Dist. Contribution to $1/pp Duplicate Teitzel #3 17 DP#48 Remove Creative District Support $10,000 Nelson #2 Edmonds City Council Approved Minutes November 20, 2018 Page 13 18 DP#50 Remove Diversity Commission Support Staff $20,000 Nelson #7 19 DP#9 Remove Safety & Risk Disaster Coordinator $85,567 Nelson #9 20 DP#10 Remove Professional Services Consultant $10,000 Nelson #10 21 DP#12 Remove National Citizens Survey $22,000 Nelson #12 22 DP# Remove Electronic Parking Software $49,900 Nelson #13 23 DP# Reduce Downtown Parking Study $35,000 Nelson #14 24 DP# Reduce Capital Renewal Projects $170,000 Nelson #17 Impacts to Fund 018 Ending Cash $250,000 Impacts to General Fund Ending Cash 1 167 $250,000 for Transitional Housing ($250,000 STREET FUND 111 25 DP #12 Remove Sidewalk Crew $323,294 Nelson #4 Impacts to Fund 112 Ending Cash $323,294 STREET CONSTRUCTION FUND 112 26 DP #97 Reduce Pavement Preservation Fund $500,000 Nelson #16 Impacts to Fund 112 Ending Cash $500,000 REET 2 FUND 125 27 DP#119 Reduce Gatewa Si n Replacement $25,000 Nelson #15 Impacts to Fund 125 Ending Cash $25,000 REET 1 FUND 126 28 DP # 104 Relocate staff proposed location of Admiral Way crosswalk $70,000 Teitzel #4 Impacts to Fund 126 Ending Cash $70,000 Unidentified Sources of Funds for New Projects 29 New DP Assessible Playground Updates $200,000) Nelson #18 30 New DP Edmonds Drug Task Force 2) Police Officers $300,000 Nelson #19 Impacts to Fund XXX Ending Cash $500,000 TECHNOLOGY RENTAL FUND 512 31 DP #88 Remove Tableau Software $28,250 Nelson #11 Impacts to Fund 512 Ending Cash $28,250 Total Councilmember Requested Changes STAFF'S RECOMMENDED PROPOSED BUDGET BOOK CHANGES Item # Budget Book Page # Description Cash Increase Decrease GENERAL FUND 1 New Item 43 City Clerk Benefits Understated 15,125 2 New Item 20 Culture & Recreation - Program Revenue $45,000 3 New Item 57 SnoCo DEM Former ESCA /SERB $5,245 4 New Item 57 SnoCo 911 (former SNOCOM) Mer er Savin s $169,180 5 New Item DP 95 Reduce Contribution to Sno Health District to $1/ca ita $42,000 Impacts to General Fund Ending Cash 145,810 Fund 017 Marsh Restoration and Preservation 6 124 Add Donation Revenues $6,800 Impacts to Fund 017 Endin Cash $6,800 Fund 112 Street Construction 7 DP 97 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 Edmonds City Council Approved Minutes November 20, 2018 Page 14 Impacts to Fund 125 Ending Cash $254,404 Councilmember Fraley-Monillas requested Mr. James email the presentation to Council. Council President Nelson explained ten of the proposed amendments are about a hiring freeze. The City has been hiring over the years and with indications of a an economic slowdown ahead, he was trying to put on the brakes. Except for public safety, he recommended delaying hiring of employees and ten of the amendments reflect that. With regard to the downtown parking study, he wanted to reduce the cost, finding $75,000 too high. Similarly, he found $35,000 too much for the gateway sign. He was happy to hear an ADA accessible playground was planned for Civic Park; he has heard some children are not able to access some of the assessible equipment on existing playgrounds. Councilmember Mesaros commented the duplicate amendment to remove the National Citizen Survey would reduce the impact to the General Fund Ending Cash from Council amendments to $376,759. Councilmember Buckshnis invited any citizen interested in the rationale for her amendments to contact her. She inquired about the amendment she submitted to reduce DP 111, Waterfront Connector, by $1M and add a new decision package for $1M for Edmonds Marsh restoration. Mr. James explained when the grant application was submitted to the State, it was for the Waterfront Connector, and it was not easily transferable to the marsh. Councilmember Buckshnis suggested $1M come from the General Fund for the Edmonds Marsh restoration because she anticipated some action next year and she wanted to illustrate her priority to get it done. Councilmember Teitzel withdrew Item 16, reducing the City's SnoCo Health District Contribution to $1, in view of Councilmember Fraley-Monillas' amendment to reduce the contribution to $0.50. He referred to the list of Staff Recommended Budget Changes, Item 8, Move $250,000 Transitional Housing Budget to REET Fund 125, advising there is a research effort underway to identify homelessness issues in Edmonds and this was the $250,000 the Council set aside to address that. He was unsure Council was comfortable with moving those funds to Fund 125 until the research has been completed, public comment has been provided, etc. Mr. James said the proposed budget book had $250,000 coming out of the homelessness fund that was allocated in the 2018 budget, which was an error. This item backs that expense out and moves it into the REET fund. Mayor Earling declared a brief recess. Mayor Earling said staff will prepare a response outlining how the amendments impact their budgets. 7. STUDY ITEMS (con't� 1. SENIOR CENTER LEASE AMENDMENT PROPOSAL Parks & Recreation Director Carrie Hite advised the packet contains the current lease and the option to lease and a redline version of the proposed changes as well as several other documents. She reviewed: r History o Current arrangement 1. Operational support: $75,000/year 2. No fee lease for current building 3. City maintains grounds and parking lot 4. Senior Center maintains daily needs 5. City helps with capital needs o January 2105: City entered into an option for a 40 -year ground lease with Senior Center. 0 Terms include: Edmonds City Council Approved Minutes November 20, 2018 Page 15 I . Senior Center right to demolish building and build new 2. Senior Center would pay for complete cost of new building 3. Senior Center would pay 50% cost to construct parking lot, and maintain parking lot 4. City would use from 4-10 PM Monday -Thursday, and other mutually agreeable times 5. Term for 40 years with renewal option for 15 more Senior Center Proposal o Updates financial goal to exercise option to 75% of total cost o Parking Lot and Street Frontage Improvements, for design, construction and maintenance become 100% responsibility of the City o Adds Easements for parking lot and utilities o New legal description defines the footprint of the building o Adds language to section 4.1.1 to allow City Council to approve demolition and construction based on financial viability o Adds some minor cleanup language • Waterfront Center schematic • Waterfront Park Redevelopment o Remove creosote pier and reintroduce beach habitat o Reconnect promenade and walkway to provide continuous walkway o Reconfigure parking lot to add storm treatment, bioswales and rain gardens (water is currently not treated) • Drawing of footprint of Waterfront Center building on property • Drawing of full project including Ebbtide walkway in second phase • Full project cost Component Costs Design Waterfront Park $248,987 Design Parkin Lot $116,040 Design Street Frontage $106,131 Design Ebbtide $203,510 Construction Park $2,129,118 Construction Parkin Lot $1,354,013 Construction Street Frontage $291,554 Construction Ebbtide Walkway $1,371,033 Permitting, Eng., Environmental $325,000 Total $6,145,386 • Parking Lot and Frontage Improvements • Senior Center Due diligence o Building Replacement Feasibility Study o Campaign Feasibility Study o Waterfront Center Campaign Update o Waterfront Center Operational Pro Forma Councilmember Johnson referred to the full project cost. Ms. Hite advised that cost includes approximately $1.5M for the Ebbtide walkway; design of that project is on hold pending litigation. Councilmember Edmonds City Council Approved Minutes November 20, 2018 Page 16 Cost 50% Senior Center Parking Lot design—$116,040 $58,020 Parking Lot Construction $1,354,013 $677,006 Frontage Improvements Design $106,131 $53,054 Frontage construction $291,554 1 $145777 Total $1,867,736 1 $933,868 • Senior Center Due diligence o Building Replacement Feasibility Study o Campaign Feasibility Study o Waterfront Center Campaign Update o Waterfront Center Operational Pro Forma Councilmember Johnson referred to the full project cost. Ms. Hite advised that cost includes approximately $1.5M for the Ebbtide walkway; design of that project is on hold pending litigation. Councilmember Edmonds City Council Approved Minutes November 20, 2018 Page 16 Johnson asked the value of the land the City owns. Ms. Hite said because park/city property is exempt, the assessor does not update the value. She estimated an acre of waterfront property was valued at $8410M. Councilmember Johnson pointed out while there has been discussion of a $12M project, considering the City's land contribution and park improvements, the City is actually contributing more than the Senior Center. Councilmember Johnson recalled the original contract addressed maintenance and asked if the new contract addressed maintenance of the parking lot. Ms. Hite explained maintenance of the parking lot would be the City's responsibility in the new proposed lease. Councilmember Johnson asked the City's total responsibility in the new lease. Ms. Hite answered maintenance would be very low in the beginning for a new facility; after 5-6 winters, she anticipated potholes, cracking, and repaving of portions of the parking lot and replacement of the entire lot in 12-14 years. Once the rain gardens and bioswales are established, they require minimal maintenance. Councilmember Teitzel commented there is nothing in the proforma about debt service or operating reserve other than an indication of TBD. Those numbers are needed before a final decision is made. The financing package focuses on design and construction of the Waterfront Center and does not address ongoing operational cost. If funding was not sufficient to cover ongoing operational cost, he asked if it was anticipated the Senior Center would borrow from the City to cover those costs. That has occurred with the ECA and the intent was to avoid a similar situation with the Senior Center. Ms. Hite answered non -profits' ability to be versatile is much greater than a city's versatility. Nonprofits are used to operating on a shoestring and creating efficiencies. She did not expect the Senior Center would ask the City for operational funds. They will have a beautiful facility, will be able to generate revenue from rentals and will be on more solid footing than the current building. Councilmember Teitzel referred to places in the Ground Lease where Senior Center and Waterfront Center are used interchangeably. For example, in Section 3. 1, "The parties mutually agree and acknowledge that the Senior Center's operation of the Senior Center upon the Property effectuates a fundamental government purpose and..." pointing out the second "Senior Center" should be "Waterfront Center. Mr. Taraday said where the language refers to the non-profit entity, the phrase "Senior Center" should be used and where the language refers to the building, the phrase "Waterfront Center" should be used. He identified several places where a change should be made and offered to make those changes in the document. Councilmember Buckshnis recalled during a Finance Committee discussion with the Senior Center, the committee requested an update to the feasibility study; however, an updated feasibility study was not included in the packet. The feasibility study dated April 2016 states the Senior Center receives $60,000/year from the City when in fact the City provides $75,000/year, and the maximum cost of the building is $10- 12M and that cost is now $16M. The committee also requested an updated proforma that replaced TBD with numbers, as well as addressed questions about rental income and wages. If the Council decides to fully fund the parking lot, Councilmember Fraley-Monillas asked the source of the funds. Ms. Hite answered likely from the BEET balances; there is currently $800,000 in one and $600,000 in the other. She recommended leaving at least $400,000-500,000 in each. With the $250,000 already included in the budget, an additional $683,000 is needed. Councilmember Mesaros asked if the full project cost of $6.1M included the additional amount proposed in the new lease of $933,000. Ms. Hite answered it included the full cost of the parking lot and frontage improvements. Councilmember Johnson suggested obtaining a report from permitting staff regarding the project timeline due to the fish window, etc. Ms. Hite said land use permits have been submitted for the waterfront Edmonds City Council Approved Minutes November 20, 2018 Page 17 redevelopment project and the building and are being reviewed. A joint permit has been submitted to the State's joint aquatic agency for the Waterfront Center, Ebbtide walkway and the park redevelopment. The review has been completed by two of the agencies and the National Marine Services Center will be writing a biological evaluation. She expected more mitigation will be required for the overwater walkway. Once that process is complete, it will go to the Architectural Design Board and the Hearing Examiner if necessary in March/April. She anticipated both projects, the park redevelopment and Waterfront Center, will submit building permits in mid-December and hopefully break ground on both projects mid-April to early May. The fish window for in -water work for the waterfront restoration project (remove the creosote pier and reintroduce beach habitat) is mid-July to mid-October. Councilmember Buckshnis relayed the balance in Park Impact Fees is $3,309,494 and asked if those funds could be used for this project. Ms. Hite answered some are being used for the City's portion. Park Impact Fees are programed through Fund 332 in the CIP, some for this project and some in the out years for Civic. COUNCILMEMBER FRALEY-MONILLAS MOVED, SECONDED BY COUNCIL PRESIDENT NELSON, TO APPROVE THE OPTION AND LEASE AND FUND THE $933,868 FOR PARKING LOT AND FRONTAGE IMPROVEMENTS. Councilmember Johnson pointed out this was on the agenda as a study item and she preferred a decision be made at the next meeting. Ms. Hite suggested bringing back the agreement with the language changes Councilmember Teitzel requested, numbers in the proforma, updated feasibility study, include the funding in the budget and schedule approval on consent. Councilmembers Buckshnis, Teitzel, and Fraley-Monillas were agreeable with scheduling approval on the Consent Agenda. Council President Nelson said he was amenable to voting tonight or wait until next week. COUNCILMEMBER FRALEY-MONILLAS WITHDREW THE MOTION WITH THE AGREEMENT OF THE SECOND. Ms. Hite clarified Council direction was to fund the full amount and schedule approval on the Consent Agenda. COUNCILMEMBER FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO EXTEND THE MEETING TO 10:15 P.M. MOTION CARRIED UNANIMOUSLY. Councilmember Buckshnis suggested moving Agenda Items 4 and 5 before Item 2. 4. PRESENTATION OF SUPPLEMENTAL AGREEMENT WITH MURRAYSMITH FOR THE FIVE CORNERS RESERVOIR RECOATING PROJECT City Engineer Rob English explained additional work has been encountered which requires additional services from MurraySmith. The proposed fee is $59,810 and includes $6,000 in management reserve. Tasks include additional submittal reviews, request for information and clarification, change order support, on-site inspections, structural engineering support, corrosion repairs and additional project management. Staff recommends approve on the Consent Agenda. The additional services will be paid from the Water Utility Fund. It was the consensus of Council to forward this item to the Consent Agenda. 5. DRAINAGE EASEMENT AT 1015 BELL STREET Edmonds City Council Approved Minutes November 20, 2018 Page 18 City Engineer Rob English drainage currently runs down Bell Street to an existing infiltration facility that does not have the capacity to handle the runoff. In working with Public Works operations, the City's stormwater engineer identified a solution to take the line across 1015 Bell Street and connect to an existing storm drain in the alley north of Bell Street. There would be a 10 -foot easement on the western side of the parcel to install the pipe. It was the consensus of Council to forward this to the Consent Agenda. 2. LAND USE PERMIT DECISION-MAKING AND QUASI-JUDICIAL PROCESS Environmental Program Manager Kemen Lien recalled the Council has previously discussed the Council's role in the quasi-judicial decision making process. Most of the discussion has been the Council's role in Type III decisions. Following the October 2nd public hearing, Council requested staff return with code language reflecting the Council acting on behalf of citizens by filing a judicial appeal. Mr. Lien reviewed potential amendments to the Edmonds Community Development Code detailing the process for Council appeal of a Type III decision: • ECDC 20.03.002 Notice of Application (NEW SUBSECTION) H. For all ? e III ermi[ a lications notice o a lication shall also be rovided to the Ci Council by email. + ECDC 20.03.003 Notice of Public Hearing (NEW SUBSECTION) F. For all Type III apl)licalions, notice public hearing shall also be provided to the City Council by email. • 20.02.007 Notice of final decision. (MOVED FROM ECDC 20.06.009) A. The director shall issue a notice of final decision within 120 days of the issuance of the determination of completeness pursuant to ECDC 20.02.003; provided, that the time period for issuance of a notice of final decision on a preliminary plat shall be 90 days, for a final plat 30 days, and a final short plat 30 days. The notice shall include the SEPA threshold determination for the proposal, and a description of any available administrative appeals, and for all Tppe III decisions.information as to how to inform the city council as to.alleged errors in the decision. 3. For all Type III decisions, notice of final decision shall be provided to the City Council by email. 20.06..YlYX City council as party of record in Type III proceed jggs,_{NEW SUI3SECTICN� A. Intent. The city council has eliminated its role as the quasi judicial decision -maker on administrative qp peals of T e IN decisions in favor ohavin the ability !a amici are in such matters as apgM ofrecord at both the administrative level and in the courts, through a LUPR ac[ion, if necessary. The notice provisions in ECDC 20.03.002, ECDC 20.03.003. and ECDC 20.02.007 reflect the interest of the city council in overseeing the decision-makingprocess on Tl+pe_Illqpplications. Ci.2 council oversight is intended to ensure That the City's code is beim properl�admiraistered and interpreted by the Type III administrative decision -maker. Type III applications are ofparticular concern to the public health, safety, morals, and general welfare" and there ore are of particular concern to the city council, because they involve higher levels of discretion and can allow for variances from the Edmonds Community Develop►nent Cade adopted by the city council. _Because _af the nature o}_Type III decisions and its interest in seeing its legislation properly applied, the city council would be prejudiced by an erroneous Type III decision. To ensure that erroneous Type Ill decisions can be corrected swi tiv. the city council shall be an ofcialparty orecord in all Type III proceedings, whether its members participate in the Type III process or not. B. Exercise of Partof Record Status. As a trustee _af the public interest, the city_council is not required to participate in the Type III process !o saris & the exhaustion (of administrative remedies] requirement that applies to other would -he parlies of record. The city council retains Edmonds City Council Approved Minutes November 20, 2018 Page 19 its party of record status throughout the administrative process even where it does nol participate. The city council may ask the Type III decision -maker to reconsider its decision, but not doing so in now diminishes its art o record status or the ur ose o seekin judicial review under LUPA, chapler 36.70C RCW. Any decision by the city council 10 seek reconsideration or to commence a LUPA proceLding shall be made duritm an open pubfic me� eting. Mr. Taraday said one of main reasons for the addition of 20.06.XXX.B is to satisfy LUPA standing requirements so if the matter reaches Superior Court, it can stay in Superior Court. Councilmember Fraley-Monillas referred to reference to "the City Council" filing a judicial appeal and asked who is responsible as there are seven members. Mr. Lien said that is addressed in the next section. Mr. Lien continued his review of the potential amendments: ■ 20.06XXX Informin the he city council oLalleed errors in Type llldecisions. (NE �YSUBSECTION) A. A pgrU o record as de rued by ECDC 20.06030ma brie aIle ed errors to the ci council's attention and request that the ci council a eal a e Ill decision on behal o the citizens and the public healtk sa e&, morals, and general welfare. To make this request, a party of record should: L Have already sought reconsideration of the decision pursuant to ECDC 20.06.010; Z. Make the request to the city council within seven mays of the decision on reconsideralian and 3. Make the request by., i. Submitting it in writing to the Council s le islativelexecutive assistant and the Development Services Director, nr H. Verbally requesting it at a regular Cily_Couned meetins B. The city council's decision to Meal or not a eal a Type III decision in res onse to such a request is a legislative decision that is not subject to review under LUPA. Making such a request has no impact on the lime within which one would be required to commence a_ L UPA action. C. Nothing herein shall be construed as preventing the city council from appealing a decision on a Type III application in the absence�an aupea! request tirade pursuant to this section. Mr. Lien advised staff is only seeking input tonight, not a decision. Councilmember Fraley-Monillas referred to the statement, "Any decision by the city council to seek reconsideration or to commence a LUPA proceeding shall be made during an open public meeting." and asked if that meant the Council would debate the merits of an appeal at the dais. Mr. Taraday said likely the Council would discuss the merit of a case in executive session under potential litigation and make a decision in open session. The Council could have that discussion in public, but he did not recommend it. Councilmember Fraley-Monillas pointed out the public will not know the basis of the decision if the Council discussed the matter in executive session. Mr. Taraday said the request from a citizen is the primary basis for the appeal. Even if the Council were sitting in an appellate capacity, he would also not publicly discuss a close question of law. Councilmember Fraley-Monillas commented as the appellate body, the Council currently has discussions in public. Mr. Taraday said court proceedings would be public, the same as the Council's current appellate decision. Councilmember Fraley-Monillas asked what happened if the Council missed the 7 -day appeal timeframe. Mr. Taraday said the 7 -days was "should" not "shall." If someone made a request on the 8" or 10th day, the Edmonds City Council Approved Minutes November 20, 2018 Page 20 Council has a reasonable basis for saying no, but the Council still has the ability to appeal. He clarified the Council is not restricted to the 7 -day timeline but is subject to the same 21 -day LUPA deadline. Councilmember Fraley-Monillas asked what currently ensures a case is heard by the Council within 21 days. Mr. Lien explained the appeal to City Council is an administrative appeal. Currently the Council's decision is the final decision and that starts the 21 -day period for a LUPA appeal. If the Hearing Examiner's decision is the final decision by the City, that starts the 21 -day period. Councilmember Fraley-Monillas asked how the Council is informed of an appeal request. Mr. Lien answered in the current process, the Council is informed when an appeal is filed. Under the proposed process, Council will receive notice of the Hearing Examiner's final decision. Mr. Taraday explained it was a "belt and suspenders" approach: the belt is the ability for citizens to come to Council and request an appeal and the suspenders are Councilmembers can raise a concern. Councilmember Buckshnis asked the total cost to a citizen. Mr. Lien said currently if a citizen appeals a Type III decision to the City Council, the fee is $500. Under the proposal, a citizen files a request for reconsideration which costs $250 and the Hearing Examiner issues their decision on reconsideration. The citizen could then ask the Council to file a judicial appeal. Councilmember Buckshnis summarized the City Council was interjecting themselves as a legislative body to appeal to Superior Court on behalf of a citizen. Mr. Lien agreed. Councilmember Buckshnis asked what happened if some Councilmembers did not agree with filing an appeal. Mr. Lien said it would require a majority of Council to initiate an appeal. For Councilmember Buckshnis, Mr. Lien explained the proposed process changes the City Council's role; instead of a quasi-judicial, the Council would essentially become an appellant. Mr. Taraday clarified the phrase, "on behalf of a citizen," the citizen would not be a party to the LUPA appeal unless they filed their own appeal. Filing on behalf of a citizen means the City of Edmonds as directed by the City Council is appealing the Hearing Examiner decision. The citizen may benefit if the City wins and the decision reversed, but he would not be representing the citizen in Superior Court. Councilmember Buckshnis commented fortunately the City currently has a flat rate attorney; if the City returned to an hourly attorney, a lot of money could be spent on this process. Mr. Taraday said the Council could also change the process if they returned to an hourly attorney. Councilmember Teitzel said his interest was not making this harder for citizens and although it sounds very complicated, it actually makes it easier for a citizen to pursue an appeal because they would not have to hire an attorney and the filing fees are less than appealing to the City Council in a quasi-judicial capacity. Mr. Lien said currently, if a citizen files an appeal to City Council, the cost is $500 and the cost to file a judicial appeal at Superior Court is $240. Petitioning the Council to appeal removes a step in the process for the citizen. Councilmember Teitzel commented it also obviates the need for the citizen to hire attorney. Mr. Lien said a citizen can represent themselves pro se in an appeal to Superior Court. Councilmember Teitzel said if the City Council appeals, the City Attorney's office would represent the City. Mr. Lien agreed. Councilmember Teitzel asked if the proposed process was simpler and less costly for a citizen. Mr. Lien answered it takes one step out of the process, the closed record appeal to City Council, and eliminating a step makes it simpler. Mr. Taraday said it eliminates a step if the Council agrees to appeal which should not be presumed. It is possible there will be citizens who request the Council appeal and the Council will decide not to. Mr. Lien said even if the Council does not agreed to appeal, it still eliminates a step before the citizen can appeal to Superior Court. Councilmember Teitzel said under the quasi-judicial process, the Council hears the case and renders a decision and the citizen can appeal to Superior Court. Mr. Taraday advised the judicial appeal never goes away but the administrative appeal goes away on Type III under this proposal. Edmonds City Council Approved Minutes November 20, 2018 Page 21 COUNCILMEMBER TIBBOTT MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO EXTEND THE MEETING FOR 10 MINUTES. MOTION CARRIED UNANIMOUSLY. Councilmember Tibbott asked how and when a citizen would make their case to the City Council. It appeared it would be in writing for discussion in executive session but if it was at a City Council meeting, how did the citizen get on the agenda. Mr. Lien reviewed the timing, a citizen had seven days following the reconsideration decision. The Hearing Examiner typically issues decisions on Fridays. If a citizen chose, they could come to City Council on the following Tuesday. The request would not be in the packet, but the Council would have received the notice of final decision on reconsideration. Councilmember Tibbott asked if the notice to Council would include all the documentation presented to the Hearing Examiner for reconsideration. Mr. Lien said the notice of application and notice of public hearing, staff report, and all materials associated with the application are included with the Hearing Examiner agenda. The Council could be added to receive the Hearing Examiner and ADB agendas. If a citizen disagreed with the Hearing Examiner's decision, Councilmember Tibbott asked how they would get on the Council's Tuesday agenda. Mr. Lien said they would not have to be on the agenda; they can make their request by, 1) in writing to the Council's legislative assistant and Development Services Director, or 2) verbal request at a regular City Council meeting during audience comments. Councilmember Tibbott asked if the three-minute audience comment would be their only opportunity to request the Council appeal. Mr. Taraday said it would be up to the Council President if he/she wanted to allow more than three minutes. If a citizen requests an appeal during audience comments, the Council has several options including amending the agenda to add more time to hear from the citizen at the same meeting or the next meeting, scheduling an executive session at that meeting or the next meeting, etc. Councilmember Tibbott said one thing that was compelling to him about the proposed process was it offered the Council an opportunity to walk a site, get more information from the parties, etc. which the Council was not able to do in the existing quasi-judicial review. He asked at what point more exploratory analysis could be done. Mr. Taraday said one of the advantages of the notice provisions was they were designed to invite the City Council into the process at the earliest possible stage. For example, after seeing a notice, a Councilmember could decide to attend and/or testify at the Hearing Examiner hearing, talk with the neighbors, etc., because there are no concerns with ex parte communication that exists in the current process. Councilmember Tibbott asked if Councilmembers could attend the reconsideration hearing. Mr. Lien explained there is no hearing for reconsideration. The Council will receive the request for reconsideration and the concerns raised regarding the Hearing Examiner's decision. With regard to the seven days, Councilmember Mesaros said there are four times a year when there is a fifth Tuesday where the Council does not meet for ten days. The citizen could still submit a written request but the opportunity to make a request at a Council meeting could expire during those ten days. He noted that was especially true in December when the Council does not meet for a period of time due to the holidays. Mr. Lien said the Hearing Examiner meets on the second and fourth Thursday of every month and he has 10 business days to issue a decision, typically the Friday following 14 days. He agreed there were instances there would not be an opportunity to make a request in person and the citizen would need to file a written request. COUNCILMEMBER MESAROS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO EXTEND THE MEETING FOR FIVE MINUTES. MOTION CARRIED UNANIMOUSLY. Councilmember Teitzel said the objection he has he heard to moving away from the quasi-judicial was it may erode the ability of Council to be advocates for their constituents. However, it was his understanding Edmonds City Council Approved Minutes November 20, 2018 Page 22 this revised process may actually improve the Council's ability to advocate for their constituents. Mr. Taraday agreed, because as judges the Council cannot advocate on behalf of one of the parties. 8. MAYOR'S COMMENTS Mayor Earling said he has reason to believe the political dynamics in Washington, D.C. are shifting with the knowledge of another party taking over authority within the House of Representatives. Sound Transit has been trying break loose $1.213 in funding to get light .rail to Lynnwood and that was recently accomplished. Sound Transit will also be receiving a $650M 'low interest loan. In speaking with one of Congressman Larsen's aides, he mentioned for the first time in two years they are getting more return emails when asking questions within the administration which the aide viewed as real progress. Mayor Earling was hopeful many things could be moved along. He wished everyone a Happy Thanksgiving. 9. COUNCIL COMMENTS Councilmember Teitzel said this week is a time to be thankful. He was thankful for the opportunity to live in the most beautify city in the state, for being able to serve on Council and enacting policies to keep Edmonds beautiful, for his family including his wife and daughters and for being a graduate of Washington State University. He said Go Cougs. Councilmember Buckshnis said she was thankful to be Packers' fan, for people who support the environment and for all the help staff provides. She urged everyone to spread kindness. Councilmember Johnson wished everyone a Happy Thanksgiving and said go Cougs. Council President Nelson wished a Happy Thanksgiving to all. Councilmember Tibbott wished a Happy Thanksgiving, offered his condolences to Cougs and said go Huskies. Councilmember Mesaros wished a Happy Thanksgiving. Councilmember Fraley-Monillas said she spent the past week on the hill in Washington, D.C. and she agreed a new-found energy was resurging. She wished everyone a nice Thanksgiving and go Huskies. Mayor Earling said go Cougs. 10. CONVENE. IN EXECUTIVE SESSION REGARDING PENDING OR POTENTIAL LITIGATION PER RCW 42.30.110(l)(i) This item was not needed. 11. 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 20, 2018 Page 23 12. ADJOURN With no further business, the Council meeting was adjourned at 10:30 p.m. 1 DA 1D O. EARLING, MAYOR eift KSSEr, CI RK Edmonds City Council Approved Minutes November 20, 2018 Page 24