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20181127 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES November 27, 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 Jeff Taraday, City Attorney Scott Passey, City Clerk Jerrie Bevington, Camera Operator Jeannie Dines, Recorder The Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Earling in the Council Chambers, 250 5" Avenue North, Edmonds. The meeting was opened with the flag salute. 2. ROLL CALL City Clerk Scott Passey called the roll. All elected officials were present. 3. APPROVAL OF AGENDA Mayor Earling advised Item 5, Snohomish Health District Presentation, was removed from the agenda as the presenter was not available. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO APPROVE THE AGENDA IN CONTENT AND ORDER AS AMENDED. MOTION CARRIED UNANIMOUSLY. 4. APPROVAL OF CONSENT AGENDA ITEMS Councilmember Johnson requested Item 4.4 be removed from the Consent Agenda. COUNCILMEMBER JOHNSON MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS TO APPROVE THE REMAINDER OF THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: 1. SEPTEMBER 2018 QUARTERLY FINANCIAL REPORT 2. APPROVAL OF CLAIM, PAYROLL AND BENEFIT CHECKS, DIRECT DEPOSIT AND WIRE PAYMENTS. Edmonds City Council Approved Minutes November 27, 2018 Page 1 ONE-YEAR RENEWAL OF THE LIGHTHOUSE, PLLC CONTRACT (LIGHTHOUSE) 5. AUTHORIZATION FOR MAYOR TO SIGN A SUPPLEMENTAL AGREEMENT WITH MURRAYSMITH FOR THE FIVE CORNERS RESERVOIR RECOATING PROJECT 6. DRAINAGE EASEMENT AT 1015 BELL STREET 5. ITEMS REMOVED FROM CONSENT 1. SENIOR CENTER LEASE AMENDMENT PROPOSAL (previously Consent Agenda Item 4.4) Councilmember Johnson recalled she had reservations when the ground lease was presented to City Council three years ago, primarily of an environmental nature and her concerns have not been completely satisfied. She was aware there were plans to build the building 12 inches about the flood area; however, with global warming, king tides and flooding, she was not convinced this was the best decision for the City with regard to the location of the senior center. She will not vote in favor of the lease amendment. In the event the breakwater was not sufficient or was damaged during construction, Councilmember Johnson was unclear who would be financially responsible, whether the cost would be shared 50/50 or if it would be 100% the City's responsibility. She pointed out there is inadequate parking in that area and there needs to be a plan for parking such as utilizing adjacent parking lots or a parking system for larger events. Councilmember Fraley-Monillas said she and other Councilmembers have received several comments from citizens regarding the Senior Center. She asked who would be responsible if the Senior Center defaults on the loan they are considering for the remainder of the building funds. She was told by the executive director that whoever loans them the money will be out the money, that the City will not be responsible to pay back the loans. For clarification, she explained the Senior Center will own the new building, but the City owns the land. City Attorney Jeff Taraday referred to Paragraph 4.3 in the proposed ground lease which addresses many related topics including the specific question Councilmember Fraley-Monillas raised with regard to loans. He read from the paragraph, "Senior Center shall not encumber the Property or any Improvements thereon without prior written approval of the City." That sentence prevents the Senior Center from using the City's property or their building on the City's property as collateral for a loan. He used the example of a mortgage where the land secures the loan; the Senior Center cannot do that in this situation. Any loans the Senior Center gets would most likely be unsecured although he did not have information related to their financial plan and suggested those questions be directed to the Senior Center. Based on this sentence, he assumed most of their loans would be unsecured. To the extend there is a default on an unsecured loan, that is between the Senior Center and the lender and the City should not have any liability to make up any default. Councilmember Teitzel read from Section 4.3 of the Ground Lease, "Failure to remove the lien or furnish the cash or bond acceptable to the City within thirty (30) days shall constitute an Event of Default under this Lease and the City shall automatically have the right, but not the obligation, to pay the lien in full with no notice to Senior Center and Senior Center shall immediately reimburse the City for any sums so paid to remove any such lien." He inquired about the word "immediately" in this clause; immediately to him meant without delay and he asked if that could mean the same day. He said "immediately" was a term of art and he was troubled by a term of art in a legal document. Mr. Taraday did not agree it was a term of art; a general legal principle in interpreting legal documents is that unless there is a specific reason to interpret a word in a way that's different than its regular, plain dictionary meaning, the regular, plain dictionary definition is used. He did not see a reason to interpret "immediately" differently than it would be used in ordinary speech. Edmonds City Council Approved Minutes November 27, 2018 Page 2 Mr. Taraday provided context for this sentence, noting if the Senior Center can't encumber the property, how could there be liens. Under state law, when a contractor or subcontractor works on property and doesn't get paid for the work, they are entitled to file a lien on the real property to ensure they will ultimately get paid. That is theoretically how these liens could arise. The Senior Center is not authorized to not pay its contractors and furthermore, it provides that the Senior Center would obtain a performance bond to ensure if they aren't able to pay their contactors, a third party would pay the contractors. He concluded the City was well protected in that regard. With regard to "immediately," Mr. Taraday explained if the lien was not removed immediately, Senior Center would be in default under the lease and the lease provides various different ways of correcting defaults, one of which, in the most extreme cases of default where there is no other viable remedy, the City could terminate the lease in which case all improvements located on the property would become the City's property. He did not anticipate that would ever be necessary given the protection provided by the performance bond. Councilmember Johnson recognized the seawall was outside the footprint of the build, but its sole intent was to protect the building. She asked if the lease agreement addressed responsibility for the seawall. Mr. Taraday said it does not directly address replacement of the seawall; the seawall is be outside the footprint that the Senior Center is leasing from City. Councilmember Johnson asked if the City would be responsible for maintaining or replacing the seawall even if its sole function was to protect building. Mr. Taraday said the seawall protects not just building but also the parking lot which provides parking for the building and City's adjacent park as well as protects the City's trail system located on the waterfront side of building. Parks & Recreation Director Carrie Hite said the seawall is currently the City's responsibility to maintain. If the seawall were damaged due to construction of building, which is not covered in lease, she believed it would be the Senior Center's responsibility. If there was any damage to the adjoining Ebbtide building, the sidewalk or sections of the parking lot that are planned to be reconstructed, it would the Senior Center's responsibility as part of the construction project. Mr. Taraday agreed. Councilmember Johnson commented the property is a former site of a sawmill, so what under the surface is unknow. Councilmember Buckshnis recalled in September the Finance Committee asked for an updated proforma that replaced TBD with numbers as well as an updated feasibility study the reflected the $16M estimated cost, but those have not been provided. She observed the Senior Center may borrow $1.5M. She asked if the City could loan money to the Senior Center, similar to the loan to the Edmonds Public Facilities District, if the Center was unable to sustain its profitability. Mr. Taraday answered there was nothing preventing the City from choosing to lend money to the Senior Center, but there was also nothing that obligated the City to lend them money. The lease expressly contemplates the City Council will have a forthcoming opportunity to revisit their financial circumstances. Mr. Taraday referenced Section 4. 1.1 of the proposed lease which states "Senior Center shall undertake no demolition, construction, remodeling, alteration, or changes ("Work") on or to the Property without the prior written consent of the City, which shall be within the discretion of the City Council to withhold or deny. In applying its discretion, the City Council shall consider, among other factors deemed relevant by the City Council, the extent to which the Senior Center has secured sufficient capital and/or financing to complete the construction of the Building, the construction of other improvements to the Property, and related financial obligations (including having an adequate contingency fund for the contemplated Work )...7f Councilmember Buckshnis clarified the City could choose not to authorize the Senior Center to break ground if their financials are not sufficient to support the project. Mr. Taraday agreed, when the Senior Edmonds City Council Approved Minutes November 27, 2018 Page 3 Center comes to the Council in a few months seeking that authority, the City Council will have another opportunity to review their financial status and the extent to which they have the capital secured and decide whether the Council is comfortable moving forward. Council President Nelson commented on the importance of continuing the long-term partnership for this vital community asset. COUNCIL PRESIDENT NELSON MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO APPROVE THE OPTION TO LEASE BETWEEN THE SENIOR CENTER AND THE CITY OF EDMONDS. MOTION CARRIED (6-1), COUNCILMEMBER JOHNSON VOTING NO. 6. PRESENTATIONS 1. SNOHOMISH HEALTH DISTRICT PRESENTATION This item was removed from the agenda. 7. AUDIENCE COMMENTS Dave Cooper, Edmonds, referred to the Housing Strategy Task Force, commenting he has been following this issue for a long time. He urged the Council to listen to the people who are opposed to Housing Strategy and have very deep concerns about it. In the meetings he has attended, 75-80% of the people are opposed; many others who do not have time to attend meetings are very concerned about the Housing Strategy. The original task force represented special interests and did not reflect the citizens of Edmonds which is the reason for the opposition. It would be more cost effective in the long run to involve the people who are opposed to the draft Housing Strategy, get their input and develop a strategy everyone can agree on instead of doing it multiple times. There has been talk of litigation if the Housing Strategy is passed. He supports the concept of more density in Edmonds, but his other concerns have been ignored. He was impressed with how hard the City Council works and suggested it may be time to move to a paid City Council because a Council paid for by the taxpayers would provide better representation and, as a taxpayer, he would be willing to pay for that. Jay Huag, Edmonds, said he first learned of the Housing Strategy Review agenda item yesterday. He and others understand the thinking behind it and many like the reset date of the 2020 but the way the Citizen Housing Commission is chosen is one of the biggest concerns as there does not appear to be an open application process and Councilmembers who vote one way will appoint accordingly. The current administration seems to be controlling a good portion of the process. Most citizens weren't fooled by the charade this summer and fall regarding the Housing Strategy and the trust factor is almost non-existent. Mayor Earling having two information meetings in the heart of the holiday season, December 3 and 13, makes it appear there is once again a rush to complete the Housing Strategy. He requested the City Council remove the Housing Strategy from of the Comprehensive Plan and develop a new plan with citizen input and transparency. He will trust in the process until he doesn't; government doesn't always get it wrong, such as with the Housing Strategy, and when enough citizens speak up, the Council needs to listen. Some of the ideas may be helpful in starting a new open and inclusive process in 2019 that will truly reflect what the residents of Edmonds want. Citizens do not want Edmonds to be another cookie -cutter town which the original strategy intended to do. He urged the Council to reach out to the citizens; hundreds have come to meetings, open houses, town halls, workshops, to speak honestly about what they want the Council to do. Rebecca Anderson, Edmonds, was encouraged by the efforts being made regarding the Housing Strategy process, specifically how to include more input and participation from residents which will result in a better outcome that will benefit residents of Edmonds. Rushing through another draft of the Housing Strategy would likely result in more skepticism from residents. She was encouraged to see some Councilmembers Edmonds City Council Approved Minutes November 27, 2018 Page 4 working on the challenge of how to include more residents in the process as illustrated by the Housing Strategy Review submitted by Councilmembers Teitzel and Buckshnis on tonight's agenda. With regard to the questions in that document, should the Council obtain the services of consultant, she suggested the skill set may exist among residents willing to assist in that role. With regard to citizen involvement, she was unsure creating a commission at the Council level was an open enough process; for example, how would a commission reach out to all residents, all neighborhoods. She proposed the positions be restricted to residents not already on other City commissions, task forces or committees so they could focus on Housing Strategy. Regarding communication, she said the City can do better; emails and websites are only helpful when people know how to sign up or where to look. She suggested sending a postcard to all Edmonds residents informing of the strategy effort and inviting them to provide input and be informed of the process. Even with the new commission, the need for a better process remains. She encouraged the Council to review the revised plan for Housing Strategy Adoption process submitted by residents during Audience Comments at the November 13 Council meeting for inspiration. She thanked the Council for working on ways to include more Edmonds residents in this important issue, but there seems to be lack of cohesiveness between the administration and City Council; they seem to be working in parallel rather than together on the Housing Strategy issue. For example, last week there was communication from the City regarding two public information meetings scheduled for next month. She asked how that effort relates to the process the Council will be discussing tonight. It would be more productive and less taxing if the administration and Council worked together. Jeff Scherrer, Edmonds, expressed appreciation for the City Council, Mayor and staffs efforts. He relayed a quote from Dr. Adrian Rogers in 1931 "You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half the people get the idea they do not have to work because the other half is going to take care of them and when the other half gets the idea that it does no good to work because somebody else is going to get what they worked for, that is about the end of any nation. You cannot multiply wealth by dividing it." He suggested considering that quote in the discussion of the Housing Strategy. He asked the City Council to remove the Housing Strategy from the Comprehensive Plan and begin a process in 2019 that truly involves Edmonds residents. Mike Hanning, Edmonds, agreed with the request to remove the Housing Strategy from the Comprehensive Plan and involve citizens instead of the handpicked task force and advisory group. He suggested a group of regular citizens, not people with special interests, so the plan reflects what the residents of Edmonds want. Roger Hertrich, Edmonds, commented the City seems to be making progress on the Housing Strategy issue. Next, he relayed that the ferry will take over the waterfront in the future. Part of their recent long- range planning includes larger ferries which results in more people waiting for the ferry and the need for more parking, as well as another slip south of the current terminal. The terminal will eventually have a ferry parked overnight, a 70 -foot tall structure that will block views from Main Street. Yet, there seems to be no resistance to that plan. He recalled when he was on the Council, there were several disagreements with the ferry and they eventually sought an alternate location, the Unocal site. Ferry service will not improve with an additional slip because the conflicts with the railroad remain. He suggested the City Council inform the state they do not want a second slip. When he was on the Council, if WSF wanted to enlarge a terminal, they would look at alternate locations. WSF found an alternate location but now want to give it up because Edmonds won't say no. 8. ACTION ITEM 2019 PROPERTY TAX ORDINANCES Edmonds City Council Approved Minutes November 27, 2018 Page 5 Finance Director Scott James recalled a presentation was made to Council last week regarding the EMS and Regular Property Tax Levies. Council requested the ordinances for the EMS Levy and the Property Tax Levy be drafted separately. He reviewed ordinance options: • EMS Levy 1. 2019 EMS Property Tax Ordinance with 1% increase to levy an estimated $4,048,199 • Regular Property Tax Levy o City Attorney drafted three options 1. 2019 Regular property tax levy with -1% decrease to levy an estimated $10,351,89 (decreases revenue by over $207,000) 2. 2019 Regular Property Tax with 0% increase to levy and estimated $10,455,577 (generates $103,000 less than the recommended 1% property tax increase) 3. 2019 Regular Property Tax with 1% increase to levy and estimated $10,559,264 (Recommended) Staff recommends the Council adopt the EMS levy. COUNCILMEMBER JOHNSON MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO APPROVE ORDINANCE 4133 PROVIDING FOR THE ANNUAL TAX LEVY BY INCREASING THE EMERGENCY MEDICAL SERVICE PROPERTY TAX LEVY BY THE CURRENT 101% LEVY LIMIT, THEREBY LEVYING AN ESTIMATED EMERGENCY MEDICAL SERVICES LEVY OF $4,048,199. MOTION CARRIED UNANIMOUSLY. Staff recommends the Council adopt the Regular Property Tax with a I% increase. COUNCILMEMBER FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO ADOPT THE REGULAR PROPERTY TAX WITH A 0% INCREASE Councilmember Johnson asked staff to describe banking and whether it protects a property owner from a property tax increase. Mr. James explained a property tax increase that is not levied can be banked for future Councils to levy. The City current has approximately $66,000 in banked capacity as a result of the Council raising property taxes by the IPD in 2014. Councilmember Johnson relayed her understanding that banking allows the City to have a 0% tax increase but gives the Council the authority to levy it in the future such as in the event of a recession. Mr. James clarified the option in the motion would not raise the 2019 property tax levy but includes an increase for new construction and banking the 1%. Councilmember Johnson summarized the Council could adopt a 0% increase and bank the 1 % for the future. Mr. James said the proposed ordinance includes banking. The Comptroller assured a 0% increase in the property tax levy does not take away the Council's ability to utilize the banked capacity in the future. Councilmember Fraley-Monillas said the intent of her motion for a 0% increase was status quo and not banking the 1%. If the 1% is banked, citizens will still pay more and the funds are banked. Mr. James explained the ordinance with a 0% increase includes banking the 1% for future Councils. Future Councils are not obligated to levy it but provides the flexibility to use it in the future. Mr. Taraday clarified it is not banking actual money, it is banking the legal authority to levy in a future year what the Council is not levying this year. Even the 101% is not the true max because it does not include the banked capacity. Banking in this context is not money collected in 2019 and placed in a bank, it is reserving the authority to levy it in future years. Councilmember Fraley-Monillas inquired about the language in the ordinance regarding banking. Mr. Taraday said Section 4 in all three ordinances includes the language regarding banking. Councilmember Fraley-Monillas asked why that was included in the ordinances. Mr. Taraday said it was included based on, Edmonds City Council Approved Minutes November 27, 2018 Page 6 1) in his opinion it was prudent to preserve that ability for future Councils should the money be needed, and 2) if the Council disagrees with his opinion, the ordinance can be amended by removing Section 4. Councilmember Fraley-Monillas said when she made the motion for Option 1, she did not understand that it included banking. Mr. Taraday explained if Councilmember Fraley-Monillas wanted a 0% increase and to not allow a future City Council to levy that 1% in the future, the way to accomplish that was to remove Section 4 from the ordinance. Mr. Taraday did not recommend that but said it could be done. Councilmember Teitzel asked if the Council decides not to increase the 2019 property tax levy rate, that does not mean the City's property tax income in 2019 would be flat because as assessed values increase, property taxes increase at a commensurate level. Mr. James said that was not true, recalling recalled a graph he displayed last week that illustrates the inverse relationship; as property values increases, the property tax rate decreases. If the Council chooses this option, the City can only increase what was raised last year, $10,368,000 as well as the allowance for new construction. The extra taxes citizens are experience are not a result of increases in assessed value. As a retiree, Councilmember Teitzel said he was sensitive to property taxes. He pointed out the 101% option would be approximately a $0.60/month or $6/year increase in property taxes. Mr. James said the cost of a I% increase to the average homeowner is $0.62/month. While he appreciated the intent to not increase property taxes, Council President Nelson preferred to take it a step further by reducing property taxes by I%. He will oppose the motion as he believes property owners have been carrying this burden too long and need some relief. Councilmember Mesaros inquired about the increase to the banked capacity if the Council adopted an ordinance that included banking. Mr. James answered it would be the 1% or $103,000. Councilmember Mesaros observed that amount would be added to the existing $66,000 and a future Council could utilize that if they chose. Councilmember Buckshnis expressed support for the status quo. She asked if there was a time limit for using the banked capacity such as five years. Mr. James said there is no time limit. Mr. Taraday explained the state allowed banking in part out of the recognition that cities cannot, without voter approval, increase the property tax levy by more than I%/ year. In recognition of that limitation, the legislature provided this vehicle so that when cities feel they don't need full 1% in a given year but may need it in a future year, the city would have banked authority to increase property tax levy by more than I%. Councilmember Buckshnis summarized a future Council could utilize the accumulated banked capacity. For example, if the Council did not increase property taxes for five years and banked that capacity, in five years the Council could increase property taxes 5%. Mr. Taraday provided a scenario, a significant economic downturn in the next eight years where sales taxes revenue plummets to level such that police, fire and other essential services cannot not be funded; one of the options that a future Council would have would be to use the banked capacity to help backfill the loss of sales tax. Every year a Council does not levy the maximum under the law, they can bank the delta. Councilmember Fraley-Monillas said she and other Councilmembers have spoken with many citizens including seniors and veterans who not able to stomach another tax increase. She realized for some people $6/year was not a big deal, but for some people such as seniors on a fixed income and their Social Security is increasing, it is significant. The City is spending millions in the proposed budget, and she did not feel the loss of the property tax increase, approximately $100,000 would be missed. She supported having no tax increase. COUNCILMEMBER FRALEY-MONILLAS MOVED TO AMEND THE MOTION TO REMOVE SECTION 4 SO THIS YEAR'S 1% WOULD NOT BE BANKED. MOTION DIED FOR LACK OF A SECOND. Edmonds City Council Approved Minutes November 27, 2018 Page 7 If the Council did not increase the property tax levy rate, Councilmember Teitzel encouraged Councilmembers to be circumspect about approving budget amendments as not increasing the property tax levy will increase the budget load without a commensurate increase in property tax revenue. Mr. James reread the motion: APPROVE ORDINANCE 4134 PROVIDING FOR THE ANNUAL TAX LEVY BY INCREASING THE REGULAR PROPERTY TAX LEVY BY THE CURRENT 100% LEVY LIMIT, THEREBY LEVYING AN ESTIMATED REGULAR PROPERTY TAX LEVY OF $10,455,577. UPON ROLL CALL, MOTION CARRIED (4-3) COUNCILMEMBERS JOHNSON, BUCKSHNIS, TEITZEL AND TIBBOTT VOTING YES; AND COUNCIL PRESIDENT NELSON AND COUNCILMEMBERS FRALEY-MONILLAS AND MESAROS VOTING NO. Mr. Taraday clarified as he understood the motion, the Council voted to approve the version of the ordinance that contains Section 4 regarding banking. Mr. James agreed. 9. PUBLIC HEARING 1. FINAL PUBLIC HEARING ON THE 2019 PROPOSED BUDGET Finance Director Scott James reviewed six new amendments (in italics and shaded): COUNCIL'S BUDGET CHANGES Item # Budget Book Page # Description Cash Increase Decrease Submitter & Request # 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 $22,000 Teitzel #2 16 DP#48 Remove Creative District Support $10,000 Nelson #2 17 DP#50 Remove Diversity Commission Support Staff $20,000 Nelson #7 18 DP#9 Remove Safe & Risk Disaster Coordinator $85,567 Nelson #9 19 DP# 10 Remove Professional Services Consultant $10,000 Nelson #10 Edmonds City Council Approved Minutes November 27, 2018 Page 8 Edmonds City Council Approved Minutes November 27, 2018 Page 9 STAFF'S RECOMMENDED PROPOSED BUDGET BOOK CHANGES Item # Budget Book Page # 20 DP# Remove Electronic Parking Software $49,900 Nelson #13 21 DP# Reduce Downtown Parking Study $35,000 Nelson #14 22 DP# Reduce Capital Renewal Projects $170,000 Nelson #17 23 DP#84 Remove State of the City Scribe $800 Johnson #7 24 DP#84 Remove Pedestrian Task Force Education Program $20,000 Tibbott #1 SnoCo 911 former SNOCOM Merger Savings $169,180 Impacts to General Fund Ending Cash $397,559 DP 95 Reduce Contribution to Sno Health District to $1/ca ita $42,000 STREET FUND 111 25 DP #12 Remove Sidewalk Crew $323,294 Nelson #4 Fund 017 Marsh Restoration and Preservation Impacts to Fund 112 Ending Cash $323,294 Add Donation Revenues $6,800 STREET CONSTRUCTION FUND 112 26 DP#111 Reduce b $1M — transfer $1M to Marsh Restore $0 Buckshnis #12 26 DP #97 Reduce Pavement Preservation Fund $500,000 Nelson #16 Correct pavement preservation expense for General Fund Impacts to Fund 112 Ending Cash $500,000 REET 2 FUND 125 28 DP#119 Reduce Gatewa Sign Replacement 1 $25,000 TNelson #15 Impacts to Fund 125 Ending Cash REET 1 FUND 126 29 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 30 New DP Assessible Pla round Updates $200,000. Nelson #18 31 New DP Edmonds Drug Task Force (2) Police Officers $300,000 Nelson #19 Impacts to Fund XXX Ending Cash WATER FUND 421 32 DP#18 Remove Vacuum Machine $70,000 Johnson #2 Impacts to Fund 421 Ending Cash $70,000 STORM FUND 422 33 DP#23 Remove one-time ex enses from Decision Package $21,000 Johnson #3 34 DP#28 Remove Dayton Street Pump Station .$907,000 Johnson #4 Impacts to Fund 422 Ending Cash $928,000 TECHNOLOGY RENTAL FUND 512 35 DP #88 Remove Tableau Software $28,250 Nelson #11 36 DP#87 Remove Council Video Recording Device $3Q,000 Johnson #8 Impacts to Fund 512 Ending Cash $58,250 Total Councilmember Requested Changes $1,872,103 Edmonds City Council Approved Minutes November 27, 2018 Page 9 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 Merger Savings $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 6124 Add Donation Revenues $6,800 Impacts to Fund 017 Ending Cash $6,800 Fund 112 Street Construction Correct pavement preservation expense for General Fund Edmonds City Council Approved Minutes November 27, 2018 Page 9 7 DP 97 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 Mayor Earling opened the public participation portion of the public hearing Mike Shaw, Edmonds, commented theory is good thing; the theory of evolution explains how the natural world works, the theory of climate change explains a lot about what is going on in the world although half of Congress and the President don't agree. There is a theory the Edmonds Marsh could use some restoration and that there could be a new salmon run through the Unocal property, soon to be owned by WSDOT. Unless funded, that will remain a theory. He supported Council budget change 26, DP 111 and said future residents of Edmonds, the birds, salmon and fisherman will thank the Council. Mike Popke, Edmonds, Board President, Edmonds Public Facilities District (EPFD), and General Sales Manager at Lynnwood Honda, said he and his wife and Lynnwood Honda have supported many things in Edmonds for the past 25 years. Nearest to their heart is the Edmonds Center for the Arts (ECA) They have seen many positive things happen in the community because the ECA exists. He provided several facts including the ECA's economic impact on the community of approximately $7.5M/year, by May 2019 the ECA will have had 360 ECA presentations, since 2006 has performed to over 840,000 people, and annual donations of $1M/year from private sources help the ECA survive and thrive. Regarding recent concerns by members of the City Council about the EPFD's financial oversight and reference to audit management letters, he said for the past ten years the EPFD has received one or more management letters; in eight of the last ten years, the City has also received one or more management letters from the State Auditor. Management letters are routine and call attention to items that the staff and governing body should be aware of and take corrective action to resolve. In all cases, the EPFD has taken corrective actions necessary to resolve any issues raised, just as the City and all government agencies across the state have done. He was proud of the ECA staff, confident in the leadership and oversight of the district and its operations. He asked the City Council to join many sponsors, audience members, individuals, businesses, volunteers and donors and peer cities across Washington State who all support their performing art centers with annual operating grants, by supporting the ECA. Nora Carlson, Edmonds, said she loves living in Edmonds. She and her partner returned three years ago after having lived in Edmonds in the 80s and 90s and became involved in the community. One of the reasons they decided to move to Edmonds is the strong arts presence. They are active volunteers in several arts organizations in Edmonds; one of the arts organizations they strongly support is the ECA where they volunteer. They are 2 in a cadre of 175 people who volunteer at ECA; the value of this support equates to about $200,000. She asked for a show of hands from the audience regarding people who have attended performances at ECA, have volunteered or supported ECA in some way; several people raised their hands and she thanked them for their support. This Giving Tuesday is an opportune time for the City Council to provide $75,000 to continue and expand the community and education outreach programs currently available at ECA. The City's generous funding will make a difference in the programs offered for the benefit of many including diversity of ages, ethnicity, abilities and both individuals and families who otherwise could not afford to participate in the arts. ECA offers unique programs on site, in schools and community venues that includes educational matinees for school and homeschool groups; Saturday matinees; Arts for Everyone discount tickets for low income students, families and adults; KidStock! free family arts Edmonds City Council Approved Minutes November 27, 2018 Page 10 celebration; artist residencies and interactive outreach; summer art enrichment camps; and the dementia inclusive series. She provided a quote, "Art has the power to transform, illuminate, inspire and motivate." Karyn Roseburg, Edmonds, a second-grade teacher at Westgate Elementary, said every year she seeks out meaningful field trips for her students. Destinations in Seattle are wonderful but far away and often expensive for students. They have been attending plays at ECA for many years. In the past she took students to the Story Box presentations at the ECA; the presentations were okay but did not provide much diversity from year to year and she planned field trips elsewhere. About five years ago, she returned to the ECA for their educational matinees which now offer diverse performances and programs throughout the year. In addition, the ECA offers Arts for Everyone grants. A typical theater ticket for a matinee at ECA is $8; for many students that cost is a financial hardship. Arts for Everyone grants uses the school's free and reduced lunch percentage to offer $2 discount tickets for students and suddenly attending the local theater is more affordable and equitable for all students. Four years ago she took her students to see the play, "Celestial Beings," a performance about a young girl with autism and how she came to be accepted by other children. When she returned to her classroom, her second graders continued to talk about the play and they ended up writing sequels to the performance that parents and Gillian Jones, ECA, were invited to watch. She loved that a one-hour performance turned into a weeklong class project with a culminating performance for parents. Her daughter, now a fifth grader, was in that group of students and she still brings up "Celestial Beings" in conversation, illustrating the impact the ECA has on local students. Last year the ECA hosted Tibetan Monks for a five-day residency. Westgate Elementary was invited to attend an educational matinee to see the monks perform. One of her students was Tibetan and was happy to attend a field trip based on his culture and his father attended as a parent chaperone. Her class found the monks' performance amazing and she attended an evening performance with her family and the Saturday ceremony. A few weeks ago she participated in a free teacher workshop sponsored by the ECA where she learned to make puppets for her classroom and tools for integrating art and STEM in her classroom. The ECA has a huge impact on local students, community and teachers. She urged the City Council to support ECA with a $75,000 grant in the 2019 budget. Donnie Griffin, Edmonds, Vice Chair, Edmonds Diversity Commission, asked for the Council's support to increase the Diversity Commission's staff support from 10 hours/month to 40 hours/month. He described critical projects they are planning: a downtown business person relayed a customer of color said she no longer wanted to come to Edmonds because she did not feel welcome in some of the stores and felt she was being stared at. The business owner returned to her business and talked to an employee of color who validated the customer's concern and said she too didn't like spending much time in downtown Edmonds. One of the projects the Edmonds Diversity Commission would like to undertake is a grand alliance with the Communities of Color Coalition of Snohomish County. The grand alliance is designed to engage the business community and leaders in opportunities to improve and enhance the diverse feel of the downtown core. Another project the commission hopes to take on is making inroads into connecting with communities on the Highway 99 corridor in an effort to create alliances with all of Edmonds. A third project is connecting with a community of color that it has been difficult to connect with, primary the Asian community, and determine how to make that growing community part of Edmonds. Gillian Jones, Director of Programming, ECA, read a letter from Phyllis Beacher and her 84 -year old mother, Icho Hutton who participate in the ECA programs for people with memory loss and their caregivers and implore the City Council to support ECA through the $75,000 grant in the 2019 budget. Her mother was diagnosed with Alzheimer's Disease in 2009 and has been living with her for the past 4'/z years and she is her full-time caregiver. They discovered the ECA dementia inclusive series on their website and have attended nearly every function offered over the past several years. She shared how the offered programs have benefited her and her mother. The programs give her mother new experiences, activities and something to look forward to as well as a sense of belonging in a community. Most often she has forgotten the specific activity or event they participated in by the time they reach the car, but leaves with a peacefulness and calm Edmonds City Council Approved Minutes November 27, 2018 Page 11 after experiencing such pleasant activities. The programs offer Ms. Beacher an opportunity to meet and socialize with others in a similar situation. She has made several good friends that provide emotional support. Being the caretaker and also the daughter can be difficult but the community support and sponsored activities at ECA help make like a little easier for them. Rich Kuehn, Edmonds, wife Julie and 31/2 year old son Jacob, expressed support for the amendment to add funding for ADA accessible parks and to bring awareness regarding the need for better accessible and inclusiveness. He distributed information regarding accessibility versus inclusiveness and how they differ for different disabilities. His son has cerebral palsy and cannot walk on his own. The current definition of accessibility for ADA parks includes wood chips even though some of the equipment is ADA accessible. Jacob cannot reach that equipment. They live in Seaview and learned Seaview Park is scheduled for a playground upgrade next year. They have spend countless hours over the past nine years with their three children at Edmonds parks but not as much recently because Jacob cannot easily reach the equipment, he no longer fits the ADA accessible swings and its difficult for him and his wife to carry Jacob to the equipment. He commented on the importance of making parks more inclusive versus ADA accessible. He was speaking for his family and other family who were unable to attend tonight's meeting. He urged the Council to review the information they submitted and reach out to him or his wife with any questions. Joe Scordino, Edmonds, expressed appreciation for the Council and the City's openness in the budget process so citizens have a good understanding of the budget, recalling when he worked for the federal government, the goal to hide information. He appreciated the $2500 in the budget for Students Saving Salmon. There are over 60 students from Edmonds-Woodway and Meadowdale High Schools in the field learning about science and having an opportunity to look into streams and see salmon and crawdads. He would like to see the salmon return to all the creeks in Edmonds. He supported a new item in the budget, funding for the Edmonds Marsh restoration project, and commented on the importance of an open channel into Edmonds Marsh that would allow salmon to return. He was hopeful the design would provide a parklike atmosphere so people can see the fish in the creek. He urged the Council to include the funding in the 2019 budget to provide matching funds for grants. Carl Zapora, Edmonds, former United Way CEO of Snohomish County and Verdant Health Commission and Public Hospital District, said what he and his wife like most about the Edmonds community is everything they could want is available including a great hospital, community college, public school district, fabulous city and great city government, and many good organizations including the Senior Center, Boys & Girls Club, etc. At the top of that list of assets is a very healthy arts community and at the very top is the ECA. He is proud that he and wife volunteer, donate and are season subscribers. When they bring visitors to the community, they love everything Edmonds, but absolutely adore the ECA. The ECA is a crown jewel and deserves the community's support. He supported the $75,000 grant in the City's budget, commenting it was important for the City to be on record supporting the ECA. Healthy communities don't happen by accident; they need to be nurtured and constantly taken care of. He recalled Mayor Earling saying Edmonds isn't Deadmonds anymore, noting it took years to build this vibrant community, but it would not take much to start slide backwards. The ECA and EPFD are doing a fabulous job; the CEO, Joe McIalwain, is recognized through Snohomish County as one of the finest non-profit CEOs and he has also been Chair of the Leadership Snohomish County Leadership Board, helping teach other non-profit leaders in Snohomish County what it means to be a good, strong non-profit organization. He encouraged the Council to consider the $75,000, not just for the money but the importance of the City being on record that they recognize ECA, support it and want to be part of its future. Roger Hertrich, Edmonds, commented the budget is large and takes a lot of reading so he selected two things. First, he recommended utility taxes be, reduced. He recalled when a change was made in the way utility projects were funded, more money would be generated, more people hired, and more projects accomplished. Unfortunately, many residents have a hard time paying the utility taxes and that often affects Edmonds City Council Approved Minutes November 27, 2018 Page 12 whether they can afford to live in Edmonds. He was concerned that at the end of the year, 50% of the money in the fund has not been spent. Second, he encouraged the City to increase road maintenance, noting there was nothing in the budget about chip sealing. Hearing no further public comment, Mayor Earling closed the public participation portion of the public hearing. Mayor Earling declared a brief recess. Mayor Earling Council described the process for reviewing and voting on Council Budget Changes; the submitter/requester will describe the amendment, staff will provide a response and Council will take action. In response to an earlier Council request, he distributed a list of Council priorities for the 2019 budget. 1. Reduce City's SnoCo Health District Contribution to $0.50/pp - $20.815 Councilmember Fraley-Monillas explained when the budget process began, she submitted a proposal for the City to contribute $2/capita to SnoCo Health District. Since then, she has been told SnoCo Health District will receive federal funds via the State Health Department based on population. As Snohomish County was the third largest county in the state, she expected they will receive a considerable amount, but it will not be available for 4-6 months. She proposed reducing the contribution to $0.50/capita and if the funds have not been distributed by May, she will ask for an additional $0.50/capita via a budget amendment. As chair of the SnoCo Health District, she knew they need money but should receive the federal funds by May. She was aware Jeff Ketchel, Administrator of the Health District, had spoken to Mayor Earling and was interested in $1/capita. COUNCILMEMBER FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO REDUCE THE CITY'S SNOCO HEALTH DISTRICT CONTRIBUTION TO $0.50/PP. Councilmember Teitzel said the October 13, 2018 memo from Mr. Ketchel asks for $2/capita for 2019. He asked why Mr. Ketchel was asking for $2/capita but Councilmember Fraley-Monillas asking $0.50/capita. Councilmember Fraley-Monillas said the Health District was not aware until recently the amount they could expect to receive. The District received approximately $600,000 last year but expect to receive considerably more this year. Mayor Earling said in conversation with Mr. Ketchel, his only concern was whether the legislature will act on the legislation. Mr. Ketchel was satisfied with the proposed funding as long as there was flexibility for additional funds if the legislation was unsuccessful. MOTION CARRIED UNANIMOUSLY. 2. Carryforward Unallocated 2018 Council Contingency — ($93,740 Mr. James explained last year Mayor Earling included $250,000 in the budget for the Council to allocate. The Council did not allocated all those funds, so it was allowed to lapse. This amendment would add the remaining funds to the Council Contingency. Councilmember Buckshnis commented basically this is Council money; she wanted to include the unallocated amount in the Council Contingency. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO CARRY FORWARD UNALLOCATED 2018 COUNCIL CONTINGENCY ($93,740). MOTION CARRIED UNANIMOUSLY. Edmonds City Council Approved Minutes November 27, 2018 Page 13 3. Remove Tree Board Minute Taker - $1.500 Councilmember Buckshnis relayed the Tree Board voted not to have a minute taker. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO REMOVE THE TREE BOARD MINUTE TAKER. MOTION CARRIED UNANIMOUSLY. 4. New DP —Add Tree Board Supplies for brochures —($1000) __ Councilmember Buckshnis relayed this would provide funds for two Tree Board brochures. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO ADD TREE BOARD SUPPLIES FOR BROCHURES. MOTION CARRIED UNANIMOUSLY. 5. Remove ECA "Enhance our Arts & Culture" contribution - $75,000 Councilmember Buckshnis said the City is on record supporting the ECA/EPFD as evidenced by the $1.3M the City has loaned to the EPFD over the past 8 years and a recent loan that was collateralized by the City's $3M CD. Due to refinancing the bond, the EPFD will not make a payment, which will free up $60,000. In the 2018 management letter, the auditor stated the biggest policy issue is whether this will ever operate as a sustainable organization. In view of the financial trends, deteriorating net worth, $1.2M payroll and $1.3M loan, she preferred to analyze the amount the EPFD needs. The new Contingent Loan Agreement has the EPFD Board reporting to the Finance Committee which will allow a dialogue about what is needed. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO REMOVE ECA "ENHANCE OUR ARTS & CULTURE" CONTRIBUTION. Councilmember Mesaros said he will vote against the motion as it behooves the City to support the ECA which brings tremendous economic strength to the City. Mayor Earling has often said Edmonds is no longer Deadmonds, and one of key factors over the ten years is the ECA. In response to Councilmember Buckshnis' comments about the EPFD refinancing their debt, that is capital debt. Not making that payment benefits their capital structure but not operating as the $60,000 cannot be used for operations. Although there is a financial benefit, the benefit will be to the City because the savings will enable the EPFD to begin repaying their loan with the City. He supports the $75,000 contribution and will not support this budget amendment. Councilmember Teitzel was conflicted about this amendment because he is a strong supporter of the ECA as a patron and donor. He recognized it is a jewel that brings culture and arts to the community. Having said that, as Councilmember Buckshnis mentioned, the City invested $2.7M in a CD to collateralize a loan which allowed the EPFD to refund their bond at a lower interest rate, but that tied up a substantial amount of taxpayer resources. Had the City not engaged in that transaction and instead invested the funds, about a point in interest could have been gained. The transaction is an opportunity cost to the City because the Council supports and believes in the ECA/EPFD. Because the City has invested substantially in their operation, he will support the motion. Councilmember Buckshnis said she supports the ECA which why she prefers to determine what they need in the future. As a former accountant, she proposed removing the contribution and determining what the EPFD needs rather than picking a number of out the air. To clarify Councilmember Teitzel's comments, Councilmember Mesaros explained refinancing the bonds benefits the EPFD but it does not benefit the ECA; the purpose of the grant is to benefit the ECA. Edmonds City Council Approved Minutes November 27, 2018 Page 14 Council President Nelson said he strongly supports the $75,000 contribution to the ECA. With regard to what the City has already done, the City extended them a loan which they will pay back. This is a grant to the ECA. He opposed the motion. Councilmember Tibbott said he will oppose the motion because he sees supporting the operation versus the collateralized loan as separate issues. Not only do other cities support their performing arts centers, Edmonds could have been supporting the ECA in the past and probably should have been. The ECA does a great job and he appreciates what the Council has done in the past to support them. Councilmember Fraley-Monillas commented issues with ECA have been going on since she started on the Council in January 2010. With that said, she was interested in what occurs in the coming year at the Finance Committee and wanted to see actual movement from the City and the EPFD/ECA regarding issues that continue to plague both sides. She was unsure removing the contribution would be the best step for the City or the ECA. She was seriously considering a one-time contribution to see what happens in the coming year. If the situation doesn't improve and the City Council does not see movement and direction to make it a more financially successful program, she will advocate against it in the future. Mayor Earling said this was intended as a one-time contribution. Councilmember Fraley-Monillas said she has have heard other Councilmembers talk about this as an annual contribution similar to other cities. Councilmember Johnson said this seems like hasty decision. She supports the ECA, attends events there and supports the arts in Edmonds. The ECA is able to get $1 M/year in contributions from community, which leads her to question how expertly they are controlling their budget. She preferred not to make a contribution this year, have the Finance Committee and the ECA work together as partners and reconsider the contribution next year. She will support the motion to remove the contribution from the budget. UPON ROLL CALL, MOTION TIED (3-3-1), COUNCILMEMBERS JOHNSON, BUCKSHNIS AND TEITZEL VOTING YES; COUNCIL PRESIDENT NELSON AND COUNCILMEMBERS MESAROS AND TIBBOTT VOTING NO; AND COUNCILMEMBER FRALEY-MONILLAS ABSTAINING. Mayor Earling inquired whether he could vote to break the tie. City Attorney Jeff Taraday said this is a preliminary vote on a budget that effectively will become an amendment to the budget ordinance. The Mayor cannot vote on an ordinance, and therefore cannot vote to break the tie. Mayor Earling advised the motion is defeated due to a tie vote. Mr. Taraday explained this exercise is the Council's opportunity to make amendments to Mayor Earling proposed budget. Anything that is in the budget stays in the budget unless the Council amends it otherwise. 6. Remove Federal Lobbyist — $72,00.0 Council President Nelson said due to his concern with the overall rate of hiring, he called for hiring freeze and most of his budget amendments reflect that including removing the federal lobbyist. COUNCIL PRESIDENT NELSON MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO REMOVE FEDERAL LOBBYIST FUNDING FOR 2019. Councilmember Teitzel did not support removing the federal lobbyist because his efforts are related securing long-term, scarce federal dollars for major projects including the Waterfront Connector, Highway 99 and potentially the Edmonds Marsh. He was in favor of the City having support at that level and anticipated it would bear fruit over time. Edmonds City Council Approved Minutes November 27, 2018 Page 15 Councilmember Tibbott agreed with Councilmember Teitzel's comments. He reflected on meeting Congressman Larsen this summer at Meadowdale Beach along with the Snohomish County Council and interested citizens where Congressman Larsen described a program he has proposed in the House to provide funds for shoreline restoration. He emailed this week Congressman Larsen's office asking about the status of that program and how it might affect Edmonds but has not had a response. It was his understanding that program would be useful for restoring Meadowdale Beach as well as the Edmonds Marsh. For that reason, he supported a federal lobbyist to inform the City what is available as well as building relationships to help the City access those funds. He supported retaining funding in the budget for the federal lobbyist. Councilmember Fraley-Monillas said although most discussions about the federal lobbyist include getting funding for Highway 99, no funding has been obtained for Highway during the time the City has had a federal lobbyist. She relayed a person was in critical care at Harborview after being hit crossing Highway 99 but there are no funds for improvements. She was on the hill in Washington D.C. recently speaking with the legislative branch; most had not heard about Highway 99 from the federal lobbyist, only from their peers. She did not think that the funding for the federal lobbyist had been put to good use for the past 4-5 years and will support the amendment to remove funding for the federal lobbyist. Community Service/Economic Development Director Patrick Doherty said during the past three years the City has had the lobbyist, there have been challenges including partisan politics in Washington D.C. The takeover of the House by democrats expected in January will put the City in a better position over the next two years to engage more successfully at the federal level. Antidotes shared with Mayor Earling from the Washington, D.C. delegation include that emails are being responded to, and the $1.213 for the Sound Transit extension to Lynnwood that had been frozen for over a year was released after the democratic House majority was declared. The groundwork laid in recent years in putting projects in front of people, helping them understand the City's priorities, and getting Edmonds on the map will take hold with a more balanced federal regime in Washington, D.C. With regard to Highway 99, Mr. Dougherty explained staff has been working with the $1M forwarded from the $IOM commitment by the state to develop a transportation improvement plan with identified projects. The lobbyist will be in a position in 2019 and beyond to make requests for Highway 99, Edmonds Marsh and the Waterfront Connector. This is the most opportune time to have a presence in Washington, D.C. Councilmember Fraley-Monillas reminded the current administration has been in office less than two years and the City has had a federal lobbyist for three years. Senator Patty Murry freed up the funds for Sound Transit 3 after working on it for many months and it just happened be released after the election. She did not want people to think that just because the democrats have taken control of the House that life will be easy. Councilmember Johnson said one of the problems with the federal lobbyist is he has not provided any direct communication to the City Council. The Council met him once but have seen no products, action or movement. While he may be advising staff and the Mayor, she found it difficult as a legislative body to continuously pay for something when there is no evidence of its success. She was supportive of the motion to remove funding for the federal lobbyist. Mayor Earling said if the City is ever going to support a program, now is time to do it at the federal level. Money is being freed up, communications are improving, and the City has been successful in obtaining $6M from the state for the Waterfront Connector. The Port recently approved $1.5M as a funding partner for the Waterfront Connector. It is a critical time to have federal lobbyist; if the City wants to move money, there needs to be someone in Washington, DC. He urged the Council not to remove funds for the federal lobbyist. Edmonds City Council Approved Minutes November 27, 2018 Page 16 UPON ROLL CALL, MOTION CARRIED (4-3), COUNCIL PRESIDENT NELSON AND COUNCILMEMBERS JOHNSON, FRALEY-MONILLAS AND BUCKSHNIS VOTING YES; AND COUNCILMEMBERS MESAROS, TEITZEL AND TIBBOTT VOTING NO. Councilmember Buckshnis remarked the $72,000 for the lobbyist is within Mayor Earling's $100,000 contract authority. 7. New DP -- Add new position_"City Arborist" x$147,000) Councilmember Buckshnis recalled she requested this last year and Parks & Recreation and Planning staff also want an arborist. There are many instances where the City needs an arborist and instead contracts for those services. In addition, the Urban Forest Management Plan needs someone to direct it. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO ADD A NEW POSITION "CITY ARBORIST." Parks & Recreation Director Carrie Hite referred to the response she, Development Services Director Shane Hope and Public Works Director Phil Williams provided in the Council packet. In completing the materials for Tree City USA, staff determined the City spent a total of $177,000 on tree activities in the three departments. The City has a city arborist, Debra Dill, in the Parks Department; the City supported her education with time and money, her certification and license costs, Ms. Dill does tree evaluations for Parks and Public Works as needed. She is also in charge of the horticulture program and flower program; some of her time would need to be freed up if the intent was to have her drive the goals of the UFMP. She, Ms. Hope and Mr. Williams developed options for Council consideration; they recommend Option A which would utilize Ms. Dill as the arborist, have her help with the street tree plan update and code updates, backfill her position and provide funds for consultants. If that is determined not to be a workable plan during 2019, a full-time arborist could be considered in 2020. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO AMEND THE MOTION TO OPTION A. Councilmember Johnson asked whether what percentage of Ms. Dill's time would be as an arborist. Ms. Hite anticipated 25% arborist and 75% flower program. Ms. Dill is compensated as a horticulturist, not an arborist. She recommended giving Ms. Dill a step increase to act as the City's arborist and backfill for on - the -ground work of the horticulturist. Ms. Dill would still be in charge of planning and designing the flower program and educating staff but planting could be backfilled with seasonal employees. Councilmember Johnson said the request is a full-time arborist and Option A is 25%; she was dissatisfied with that small percentage. Ms. Hite referred to an email from Ms. Hope that laid out three options that Ms. Hope, Mr. Williams and she had developed; Option A is the leanest option which does not include hiring a full-time arborist but using the current arborist on staff, reallocating a bit of her time to drive the goals of the UFMP and backfilling for the flower program. Staff recommends starting slow to see what can be accomplished with the lean option and hire a full-time arborist next year if necessary. Councilmember Johnson referred to Ms. Hite's suggest to upgrade Ms. Dill's position to an arborist. Ms. Hite answered it is a union issue, she recommends adding some incentive pay for Ms. Dill to continue as an arborist and she should be paid more than a horticulturist. Councilmember Johnson questioned whether 25% of her time would be enough. Councilmember Buckshnis answered it would be a good start. She recognized Ms. Dill was an arborist and does a splendid job. She felt this was a good option rather than hiring a full-time arborist and hoped it could be increased to 50% or more in the future. Edmonds City Council Approved Minutes November 27, 2018 Page 17 AMENDMENT CARRIED (6-1), COUNCIL PRESIDENT NELSON VOTING NO. MAIN MOTION AS AMENDED CARRIED (6-1), COUNCIL PRESIDENT NELSON VOTING NO. Councilmember Fraley-Monillas referred to Councilmember Buckshnis' comment regarding the federal lobbyist and that Mayor Earling had contract authority under $100,000. She asked if that still applied when the Council voted against doing something. Mr. Taraday said the City Council adopts the budget at the fund level. With respect to the General Fund, the Council is appropriating an amount of money to be spent. There are some exceptions such as salaries which have to track what is approved in the budget; however, with regard to the Mayors' contracting authority, he has that authority not withstanding a specific vote that would have potentially added more money into the General Fund for that purpose. Councilmember Fraley- Monillas summarized Mayor Earling would have to find the $72,000. Councilmember Fraley-Monillas asked if Mr. Taraday was confident about that; it was irrelevant if it was under $100,000. Mr. Taraday answered yes, because the Council adopts the budget at the fund level. The Council does not have to adopt the budget at the fund level although that has been done during the time he has been the City Attorney. To do it differently would require budget amendments on a monthly basis. Councilmember Fraley-Monillas commented that could be said for anything on this list if it was under $100,000 and he could find the money to do it. Mr. Taraday said to the extend the Council's budget changes add or subtract money from the General Fund and do not involve hiring new employees, the Mayor's contracting authority is what it is within the General Fund. Councilmember Fraley-Monillas summarized it didn't matter how the Council votes. Mr. Taraday agreed because of the way the Council adopts the budget. If the Council is ever dissatisfied with the way the Mayor uses his contracting authority, the Council could reign it in in a number of ways including, 1) taking that authority away, or 2) adopting the budget in a different way. Because of that the Mayor has generally exercised restraint in doing as the Council directs. 8. New DP —Add increase for Court Security— ($33,000) Councilmember Buckshnis recalled from Judge Coburn's presentation that additional court security was needed. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO ADD INCREASE FOR COURT SECURITY. Council President Nelson said although he advocates a hiring freeze, his exception is public safety, so he will support an increase for court security. MOTION CARRIED UNANIMOUSLY. 9. Remove Five Corners Consultant 430,000 Councilmember Buckshnis relayed the Council hoped to form a Citizen Housing Commission next year and she preferred to get a handle on housing before moving forward with Five Corners. Ms. Hope advised this proposal is based on Council direction to move forward at a moderate pace with planning for Five Corners and follow up on the 2010 work that was halted while the roundabout was constructed. She anticipated this effort would begin in late 2019. Councilmember Johnson recalled the City used the UW Green Futures Lab to do the initial work and the next step was developing form -based code for implementation which she had the impression was a staff - heavy effort. She asked if the consultant would be used for form -based code. Ms. Hope answered primarily form -based code but working in conjunction with staff. Councilmember Johnson said she has been patiently Edmonds City Council Approved Minutes November 27, 2018 Page 18 waiting since 2010 and was concerned that opportunities for redevelopment have been lost during that time. For example, the animal hospital locked up that quadrant. She expressed support for this item. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCIL PRESIDENT NELSON, TO REMOVE THE FIVE CORNERS CONSULTANT. Councilmember Fraley-Monillas commented this is a small amount in the grand scheme. She agreed with Councilmember Buckshnis that there are a lot of justifiable issues in the community regarding housing and she was not comfortable moving forward with a Five Corner's consultant until those issues are addressed. She supported removing the funding from the budget. UPON ROLL CALL, MOTION CARRIED (5-2), COUNCIL PRESIDENT NELSON AND COUNCILMEMBERS FRALEY-MONILLAS, BUCKSHNIS, TEITZEL AND TIBBOTT VOTING YES; AND COUNCILMEMBERS JOHNSON AND MESAROS VOTING NO. 10. Remove Youth Services Coordinator - $53,717 Council President Nelson said he was supportive of the Council creating the commission but does not support hiring a coordinator. COUNCIL PRESIDENT NELSON MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO REMOVE YOUTH SERVICES COORDINATOR FOR 2019. Councilmember Buckshnis preferred to hire a consultant first like was done with the Tree Board and the Diversity Commission to determine the level of staffing that is needed. Councilmember Johnson said creative solutions could be developed for supporting the Youth Services Commission and suggested using the Students Saving Salmon model where technical people work with the School District to achieve common goals. She recalled when the students made a presentation to the Council, they were concerned about bullying, sexual discrimination and other issues at the school. It seemed the SRO working with high school students would be an ideal community liaison. She did not support hiring a person but did support assisting the commission. Ms. Hite referred to her response in the Council packet, recalling when the Council approved the Youth Commission, she informed Council that staff did not have the capacity to assist this commission and she was assured resources would be provided. After researching youth commissions in Redmond, Issaquah, Sammamish, Seattle, and Bothell, they all have a full-time position or a 1.5 FTE. The proposed .5 FTE was intended to start slow and small. In her experience, the youth, although they are very independent and think they can do everything and are very ambitious, need more guidance than an adult commission. The support for the commission is to help them understand their role, the government process, and the parameters for advising the Council. She assured the commission will be ambitious and want to do programs. She recommended funding a .5 FTE. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO AMEND THE MOTION TO A $30,000 BUDGET FOR A CONSULTANT. Councilmember Mesaros agreed with Ms. Hite that some structure and guidance is needed for the commission. He also agreed with Councilmember Buckshnis that a .5 FTE was not needed immediately. He preferred to hire a consultant to establish the framework for what needs to be accomplished and turn that into a .5 FTE in the future if necessary. Edmonds City Council Approved Minutes November 27, 2018 Page 19 UPON ROLL CALL, AMENDMENT CARRIED (4-3), COUNCILMEMBERS BUCKSHNIS, MESAROS, TEITZEL AND TIBBOTT VOTING YES; AND COUNCILMEMBERS JOHNSON AND FRALEY-MONILLAS AND COUNCIL PRESIDENT NELSON VOTING NO. UPON ROLL CALL, MAIN MOTION AS AMENDED CARRIED (4-3), COUNCILMEMBERS BUCKSHNIS, MESAROS, TEITZEL AND TIBBOTT VOTING YES; AND COUNCILMEMBERS JOHNSON AND FRALEY-MONILLAS AND COUNCIL PRESIDENT NELSON VOTING NO. 11. Remove Car for SRO — negotiate - $65,000 Councilmember Buckshnis explained this is the SRO for Scriber High School which is funded 50/50 with the school district. She preferred to negotiate the cost of the car because all the other costs were negotiated. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER JOHNSON, TO REMOVE CAR FOR SRO AND NEGOTIATE WITH EDMONDS SCHOOL DISTRICT. Chief Compaan explained the Edmonds School District proposed and the City approved immolating the existing ILA at with the District at Edmonds-Woodway High School to place an SRO at Scriber High School which includes a vehicle. The vehicle is already part of the ILA with Edmonds-Woodway High School and this is proposed to be the same. For Councilmember Teitzel, Chief Compaan explained the vehicle is important for two reasons, 1) it is a visual deterrent at the campus, and 2) it is an important, strategic and tactical tool for the officer in case it is needed in an emergency situation. He would not want an SRO at a school without a car. Councilmember Teitzel asked if the SRO needed a car equivalent to an Edmonds Police officer's car. Chief Compaan answered yes. Councilmember Fraley-Monillas asked if the $65,000 cost was split with the Edmonds School District. Chief Compaan advised a capital expenditure to purchase the vehicle is proposed from existing B funds; the City would own the vehicle. Edmonds School District has agreed to defray operation and maintenance costs. Councilmember Fraley-Monillas said it seemed like a lot of money for a vehicle for an SRO. Chief Compaan said that's what a police vehicle costs. Councilmember Fraley-Monillas said she was not saying the SRO might not need a vehicle at some point, but 95% of the time he/she would not. Chief Compaan reiterated the vehicle is a deterrent factor. Councilmember Fraley-Monillas asked if there were any other vehicles that hadn't been auctioned off that the SRO could use. Chief Compaan said there was not. Councilmember Fraley-Monillas did not support spending $65,000 on a vehicle plus the cost of the officer. Councilmember Mesaros relayed the current arrangement for Edmonds-Woodway High School is the City supplies the vehicle and that has always been done for the SRO at Edmonds-Woodway High School. Now that an SRO would be located at another high school within the City limits, it seems natural that a vehicle would be provided. Chief Compaan agreed. Councilmember Tibbott asked about the Scriber High School campus, the nature of the work the SRO will do and why a vehicle would be helpful. He understood the student body at Scriber was smaller than the other high schools in the District. Chief Compaan agreed it was a smaller student body, but the campus was about the same size as Edmonds-Woodway High School and it was just as prone to potential issues as any other school campus in this day and age and he felt it needed to be handled in same manner. Councilmember Tibbott asked if other students shared the campus along with Scriber. Chief Compaan answered there were several other learning communities on the campus. Councilmember Tibbott concluded the SRO and the vehicle would support Scriber and the other communities on the campus. Edmonds City Council Approved Minutes November 27, 2018 Page 20 Councilmember Johnson said she had a difficult time with the purchase of a new vehicle. She understood the City has an ILA with Edmonds School District for Edmonds-Woodway High School for an SRO and asked if there was an SRO at the campus now. Chief Compaan answered yes. Councilmember Johnson asked if a new vehicle was purchased for the Edmonds-Woodway High School SRO. Chief Compaan explained an existing vehicle was used but there are none that can be dedicated to the SRO at this time without replacing another vehicle in the fleet. Councilmember Johnson asked if the vehicle would be rotated through the department so it gets used. Chief Compaan said it would. With regard to the car being an important deterrent, Councilmember Johnson recalled years ago the DARE program used confiscated vehicles. She asked if there were any confiscated vehicle available through the South Snohomish County Drug Task Force that could be used for this purpose. Chief Compaan answered that task force does not exist anymore; the City joined the Snohomish County Task Force and the City does not have direct access to vehicles. Councilmember Johnson relayed her understanding Scriber High School was a magnet school for the entire Edmonds School District and asked why Edmonds was footing the bill. Chief Compaan answered it was located in Edmonds. Councilmember Johnson supported the SRO, but had a hard time funding a vehicle. She asked how often an officer needed to use a vehicle. Chief Compaan answered it would be used on a daily basis when the officer is at the school to drive to and from the school, meet with parents, pick up a truant student or respond to criminal activity. He assured the vehicle would be used on a daily basis. Councilmember Fraley-Monillas clarified when the SRO program began at Edmonds-Woodway High School, the Police Department had a vehicle so a vehicle was not purchased. Chief Compaan agreed. Councilmember Fraley-Monillas said she has five years of experience with her son at the campus which houses the Homeschool Network, the Boys Program, and the Pre -Work Adjustment Program that serves students with disabilities. She inquired about a former Edmonds Police officer provided security at the campus for the past ten years. Chief Compaan said he had retired; the City had not been involved in that arrangement. Councilmember Fraley-Monillas recalled the security officer did not carry a gun or have a vehicle, but assisted with the programs on the campus. She said Scriber High School serves Lynnwood, Mountlake Terrace, Edmonds and some Snohomish County students. In the event of an emergency such as a violent confrontation or the officer had to pursue someone, Council President Nelson asked how that would happen if the SRO did not have a vehicle. Chief Compaan answered it would not happen; the officer would have to rely on other patrol units. From a strategical and tactical standpoint, he recommended the officer have the tools of the trade which include a vehicle. UPON ROLL CALL, MOTION FAILED (2-5), COUNCILMEMBERS JOHNSON AND FRALEY- MONILLAS VOTING YES; AND COUNCIL PRESIDENT NELSON AND COUNCILMEMBERS BUCKSHNIS, MESAROS, TEITZEL, AND TIBBOTT VOTING NO. 12. Remove Increase for PIO/Communications Specialist - $18,000 Economic Development/Community Services Director Patrick Doherty said that position is very valuable and is becoming more so every year. The position performs a wide range of duties that include public relations, review and creation of media releases, covering local public events, liaising with organizations that involve the public, pitching stories to regional media, strategizing with staff on public engagement, etc. Social media is a minor component of her overall duties. Over the past 4 years, the PIO has secured 25 incidents of live TV coverage for events, venues, restaurants, business openings, people and happenings in Edmonds, that on its own has a value of hundreds of thousands of dollars. The request for the additional $18,000 would allow her to work 10-15 hours/week instead of 5-10 hours/week. The cost of the contract is commensurate with a mid-level program manager. Edmonds City Council Approved Minutes November 27, 2018 Page 21 Councilmember Buckshnis expressed concern the consultant was paid $250/hour which is more than what the City pays Mr. Taraday, 2500/month for 10 hours. Mr. Dougherty explained the contract was currently 5-10 hours/week and would be increased to 10-15 hours/week which is about $61/hour which with no benefits is commensurate with a program manager. For Councilmember Fraley-Monillas, Mr. Doherty said the current salary is $36,500/year for about 5-10 hours/week. The proposal is for the same hourly rate of about $58 plus an inflationary increase to $61. The consultant is very dedicated and puts in whatever hours it takes; in a week with very little going on, her hours may be as low as 5, for weeks with a lot going on, she may work 15 or more but the average is 5-10. Councilmember Fraley-Monillas asked how the PIO's hours are tracked. Mr. Doherty said the contract is an average of 5-10 hours week and may be more or less in any given week. She itemizes the work she does during the week but does not fill out a timesheet; it is a contract and retainer for services that average 5-10 hours/week; the proposal is to increase the contract by $18,000. Council President Nelson said to be consistent, he supports the current work the PIO/Communication Specialist is doing but does not support increasing her workload for hiring freeze purposes. COUNCIL PRESIDENT NELSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO REMOVE INCREASE FOR PIO/COMMUNICATIONS SPECIALIST. Councilmember Mesaros did not support removing the funding because he recognized the need to improve communication. It is important to have a professional in the community industry to lead, guide, and strategize and communication is an important element of government. This is a minor amount in the budget. He recalled Mr. Scordino complimented the Council on their openness, yet the Council is often criticized for not being open. UPON ROLL CALL, MOTION CARRIED (4-3), COUNCIL PRESIDENT NELSON AND COUNCILMEMBERS JOHNSON, FRALEY-MONILLAS AND BUCKSHNIS VOTING YES; AND COUNCILMEMBERS MESAROS, TEITZEL, AND TIBBOTT VOTING NO. 13. New DP — Add Ca forward for Professional Services — 132 000 Councilmember Buckshnis said the 2018 estimate for the Council budget will be only $100,000 and she wanted to carryover the $132,000 into 2019 to continue the Windward contract. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO ADD A NEW DECISION PACKAGE — ADD CARRYFORWARD FOR PROFESSIONAL SERVICES. MOTION CARRIED UNANIMOUSLY. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO EXTEND THE MEETING UNTIL 10:30 P.M. MOTION CARRIED UNANIMOUSLY. 14. Remove Contract Project Management Support - $45,000 Councilmember Teitzel explained after substantial debate and deliberation earlier this year, the City Council agreed to add a finance manager to Public Works. Part of the rationale was existing Public Works personnel spend a substantial amount of time working on financial issues. The finance manager will free up staff to work on tasks in their job description. This could be revisited next year if necessary after the impact of the finance manager on workloads is known. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO REMOVE CONTRACT PROJECT MANAGEMENT SUPPORT. Edmonds City Council Approved Minutes November 27, 2018 Page 22 Mr. Williams said staff is working to fill the finance manager position. This is project management, not finance management. The main rationale is the capital renewal program previously had $56,600/year for 20 years. That amount was increased in 2014/205 to $100,000, then to $300,000, last year to $530,00 and this year is $700,000 Although that is an incredible increase, it is still not a enough to bring City buildings to a sustainable condition. The recently completed Facility Condition Index suggests there is a $5M backlog in deferred maintenance on City buildings. Even if the $5M backlog had been addressed, the funding level to keep them at that level is $800,000/year. When the funding level was $56,000, the facilities manager could execute those small projects; with more investment in the buildings, the suggestion is to hire a consultant to assist the facilities manager deliver projects to improve buildings. Councilmember Tibbott relayed his understanding that the increased funding was projects to address deferred maintenance. The request is $45,000 for a project manager to manage $700,000 in projects. He asked how many years a project manager consultant would be needed. Mr. Williams said if the ongoing commitment is $800,000/year, and there is a $5M backlog, he did not envision it would be short term. The City could bond for a capital project to upgrade building systems but once the deferred maintenance is accomplished, the ongoing cost of capital renewal is $800,000/year. It is difficult for the facilities manager to manage staff as well as function as a project manager for $700,000 in capital work. Councilmember Mesaros asked who would do the work if the funding was removed. Mr. Williams answered funds budgeted for projects would be used to hire project management which would reduce the number of projects that would be delivered. Councilmember Mesaros summarized not approving this funding simply defers maintenance longer. Mr. Williams said that is one way to look at it; this work will require someone's time and it has to be paid for somehow. It will be either taken out of the funds allocated for the projects or by adding funds for project management. UPON ROLL CALL, MOTION CARRIED (5-2), COUNCIL PRESIDENT NELSON AND COUNCILMEMBERS JOHNSON, FRALEY-MONILLAS, BUCKSHNIS AND TEITZEL VOTING YES; AND COUNCILMEMBERS MESAROS AND TIBBOTT VOTING NO. 10. ACTION ITEMS ORDINANCE RELATED TO BUSINESS LICENSE MINIMUM THRESHOLD AND DEFINITION OF ENGAGING IN BUSINESS City Clerk Scott Passey relayed the State legislature passed a law requiring cities with a business license to partner with the state's Business Licensing Service (BLS) to issue city business licenses. Edmonds will begin partnering with the state in the second quarter of 2019. As a precursor to that partnership, Edmonds needs to update its business code with regard to, 1) the definition of what it means to engage in business, and 2) establish a threshold exemption that applies to out-of-town or transient businesses that do business in Edmonds. The exemption is the amount a business makes in annual revenue to trigger the City requiring them to have a city business license. Most cities who have established a threshold have selected $12,000/year; some smaller cities are establishing smaller thresholds, even as low as $1,000. Staff feels $12,000 is a reasonable threshold and it has been adopted by comparable cities such as Bothell, Kirkland, Tukwila, University Place, and Burien. Staff recommends Council adopt the ordinance to amend the business license code to adopt a new definition of engaging in business and establish a threshold exemption of $12,000/year. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO APPROVE ORDINANCE NO. 4135, AMENDING THE DEFINITION OF "ENGAGING IN BUSINESS" AND ESTABLISHING A MINIMUM THRESHOLD EXEMPTION. Edmonds City Council Approved Minutes November 27, 2018 Page 23 Councilmember Fraley-Monillas asked the amount of revenue loss to the City and whether there were many businesses that make less than $12,000/year. Mr. Passey said revenue is on a self -reporting basis. The City has a service that tries to identify businesses that should have a license, but it is not very successful. The benefit of partnering with the state is BLS is the Department of Revenue so they know who is doing business in the City. When the partnership is activated, it is likely compliance will increase. The City's business license code will need to be revised to reflect that the state is administering the code. Councilmember Fraley-Monillas asked if it was primarily home businesses that make less than $12,000. Mr. Passey answered it could be home occupations. It would be possible to have different rates for home occupations and/or non-residents because they take less time to review because there is no land use review. Councilmember Tibbott asked if this was related to business conducted in the City. Mr. Passey answered yes. MOTION CARRIED UNANIMOUSLY. 2. 2018 COUNCIL CONTINGENCY OF $10K FUNDS FOR 2019 HISTORICAL PRESERVATION INTERNS Development Services Director Shane Hope reported she worked on this with Councilmember Johnson, who is on the Historic Preservation Commission (HPC). The HPC would like to be more proactive in encouraging property owners to register their property on the Registry of Historic Places. However, with limited staff and volunteers, it was suggested hiring student interns to identify historic structures. She emphasized it is a voluntary program to encourage historic preservation; she anticipated more people may be interested if they knew about the program Councilmember Johnson relayed this idea was proposed by Planning Manager Rob Chave in an effort to get more houses on the register. Council Contingency funds would be used to hire the interns. COUNCILMEMBER JOHNSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE $10,000 FROM THE COUNCIL CONTINGENCY FOR 2019 HISTORICAL PRESERVATION INTERNS. Councilmember Tibbott relayed his understanding these funds were from the 2018 Council Contingency. Councilmember Johnson agreed, explaining Mr. Chave suggested advertising nationally in an effort to attract students in a historic preservation graduate program. Councilmember Tibbott asked about student qualifications. Councilmember Johnson envisioned graduate level students in a historic preservation program in their first to second year. Councilmember Teitzel supported this proposal, anticipating this could accelerate the addition of properties to the registry and retain the character of Edmonds. MOTION CARRIED UNANIMOUSLY. 3. HOUSING STRATEGY REVIEW Councilmember Tibbott emphasized this is not intended for action tonight, it is a proposal that would be brought to Council on early 2019. The purpose of the proposal is to, 1) capture the momentum of the Housing Strategy Task Force, harness the community involvement, energy and input and make the most of citizen input, and 2) provide via a citizen commission a process to narrow the focus of the Housing Strategy. The proposal is being presented in 2018 because two actions may need to be taken, 1) put an amendment to Comprehensive Plan on the 2019 docket to increase the time to develop a Housing Strategy, and 2) there Edmonds City Council Approved Minutes November 27, 2018 Page 24 could be budget implications to ensure sufficient Council Contingency funds are available. He summarized the intent was to form a Citizens Housing Commission whose focus in the short term would be a Housing Strategy and in the long term, implementing actions and gathering input from citizens. The commission has a sunset date of January 1, 2021. Councilmember Tibbott explained the Council will provide the commission specific guidance to ensure they have a clear mission, expected accomplishments and recommendations that will be valuable to City Council. The selection process includes several options. He anticipated a deliberate process with a lot of citizen input from different areas of the City. He hoped to complete a Housing Strategy in 2019 and keep the commission intact for another year to receive additional input during implementation. Councilmember Buckshnis said City Attorney Jeff Taraday will draft a resolution docketing an amendment to the Comprehensive Plan to remove the implementation action, Develop a strategy by 2019 for increasing the supply of affordable housing and meeting diverse housing needs. She said the Comprehensive Plan already has affordable housing strategies and the draft Housing Strategy is on steroids. She preferred to get back to basics, invite the public and allow public comment during commission meetings which has not happened with the administration's task force. Councilmembers will each select a citizen to serve on this Council -driven commission. Council President Nelson said he directed Mr. Taraday to develop a resolution to amend the Comprehensive Plan for consideration at next Tuesday's meeting. Council President Nelson thanked Councilmembers Tibbott and Buckshnis for their work developing this Citizens Housing Commission. He suggested doubling the number of Council appointees from one to two, the Mayor appointing one member, no Planning Board member and only one Councilmember. He expressed interest in funding the public engagement such as mailing postcard and/or doing a survey. COUNCILMEMBER FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO EXTEND THE MEETING FOR TEN MINUTES. MOTION CARRIED UNANIMOUSLY. Councilmember Fraley-Monillas asked how the Citizens Housing Commission would be blended with the current new task force that has two meetings scheduled next week. Councilmember Tibbott explained the intent is not to reform the task force. Ms. Hope has an advisory group that is assisting her; that was intended to be an interim group, not long-term. He looked forward to collaborating with staff and he has ideas for increasing communication at the Council level as well as utilizing existing commission. The intent is to increase citizen input and develop a quality approach to implementing the Housing Element, but also a quality vision for how housing and other city services are impacted as the population grows, as the region grows and employment increases. grows. He was optimistic this will be a way to bring people together to have vital conversations around this issue. Councilmember Mesaros agreed with Council President Nelson's suggestion to have a larger group by each Councilmember appointing two members. The more input the better. He reminded the public that when there is an opportunity for Councilmembers to appoint members, the opportunity to apply is publicized; Councilmembers then review the applications and make appointments. In response to Councilmember Fraley-Monillas' question, Councilmember Buckshnis said the draft strategy developed by BERT blew up. That task force went away, an advisory group was formed to advise staff. She envisioned the Citizens Housing Commission as a visioning group that will be open to the public. This is simply a draft to get started and docket the removal of the implementation action. The Council will create its own commission, she liked the idea of Councilmembers appointing two members. The reason she proposed carrying forward $90,000 into the 2019 budget was to provide funds. Edmonds City Council Approved Minutes November 27, 2018 Page 25 Councilmember Teitzel commented this has been a very divisive issue between Council, staff, and citizens and he hoped to get beyond that. The summary statement developed by Councilmember Buckshnis and Councilmember Tibbott states this commission will serve that the direction of the Council and seek to produce a Housing Strategy. He hoped it was a City Housing Strategy, not a Council Housing Strategy. His vision was to form a citizen commission and work with staff to develop a new strategy document. He was not interested in Council forming a citizen commission that requires hiring a consultant to create a Council strategy. He asked if the if intent was a Council strategy or a City strategy. Councilmember Tibbott said like any commission that produces a product, the Council offers guidance. The intent is to produce a strategy in cooperation with City staff and the commission provide recommendations for Council consideration. He emphasized the specifics of the commission will be discussed during a study session in 2019. Because so many people are interested in the Housing Strategy, Councilmember Johnson suggested Ms. Hope summarize the status of the advisory group and the trajectory of that effort. Ms. Hope said the advisory committee is intended to be short term committee, helping her on public engagement, housing issues, etc. It is not intended to conflict with this commission. Councilmember Johnson was interested in some type of hierarchy for the Housing Strategy, commenting the compendium of ideas that it started with need to be narrowed. She was interested in what could be done in the short term and the highest priorities to ensure the commission gets work done instead of talking about it for two years. The highest priority for her personally is the senior population. Edmonds has a lot of single people living in homes who need different support that an emerging market in Seattle. She was less interested in a lengthy process and was very interested in incorporating the work that has been done so far, gathering valuable feedback from citizens and then working on housing implementation rather than just a Housing Strategy. COUNCILMEMBER TIBBOTT MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO EXTEND THE MEETING FOR TEN MINUTES. MOTION CARRIED UNANIMOUSLY. Councilmember Tibbott reiterated he brought this forward to docket the amendment to the Comprehensive Plan and ensure there are adequate funds in the 2019 budget. Councilmember Teitzel pointed out the first goal in the Housing Element of the Comprehensive Plan states, encourage adequate housing opportunities for all families and individuals in the community regardless of their race, age, sex, religion, disability or economic circumstances. He recommended the commission first review the Housing Element goals and policies to ensure they are well understood. 11. REPORTS ON COUNCIL COMMITTEES This item was omitted. 12. MAYOR'S COMMENTS Mayor Earling had no comments. 13. COUNCIL COMMENTS Councilmember Johnson thanked the audience, commenting she did not recall seeing people in the audience at 10:45 p.m. Councilmember Buckshnis said she will call in to the Council meeting from Wisconsin next week. Information about the Edmonds Marsh and PSAR funding is available from the Council's legislative assistant. The marsh should be on their priority list. Edmonds City Council Approved Minutes November 27, 2018 Page 26 Councilmember Teitzel said speaking for all Cougars, we'll get `em next year. Councilmember Tibbott said he enjoyed watching the snowstorm in Pullman and was celebrating the Huskies' win. Councilmember Mesaros was pleased that 37 years ago today he married the love of his life. 14. CONVENE IN EXECUTIVE SESSION REGARDING PENDING OR POTENTIAL LITIGATION PER RCW 42.30.110(1)(i) This item was not needed. 15. RECONVENE IN OPEN SESSION. POTENTIAL ACTION AS A RESULT OF MEETING IN EXECUTIVE SESSION This item was not needed. 16. ADJOURN With no further business, the Council meeting was adjourned at 10:47 p.m. r ` ID O. EA LING, MAYOR r PAS EY, CITY CLE Edmonds City Council Approved Minutes November 27, 2018 Page 27