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20181211 City CouncilEDM OND S CITY COUNCIL APPROVED MINUTES December 11, 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 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 Rob English, City Engineer 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 51 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 COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. 4. APPROVAL OF CONSENT AGENDA ITEMS COUNCILMEMBER TIBBOTT MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: 1. APPROVAL OF COUNCIL SPECIAL MEETING MINUTES OF DECEMBER 4, 2018 2. APPROVAL OF COUNCIL MEETING MINUTES OF DECEMBER 4, 2018 3. APPROVAL OF CLAIM, PAYROLL AND BENEFIT CHECKS, DIRECT DEPOSIT AND WIRE PAYMENTS. 4. ACKNOWLEDGE RECEIPT OF CLAIMS FOR AN UNDETERMINED AMOUNT Edmonds City Council Approved Minutes December 11, 2018 Page 1 5. 2019 BOARD & COMMISSION REAPPOINTMENTS 6. 2018 BOARD & COMMISSION RETIREMENTS .��"1J" 04woI0aluWO0V Erling Hesla, Edmonds, read a letter from 15 Edmonds residents, expressing appreciation for the work done on 2019 capital and operating budgets, and relaying their belief that the budget is a reflection of the City's values and ideally represents the residents' priorities. Public health and safety should always be a priority and they are blessed to live in a City providing many unique functions and amenities. They expressed concern that some major items have been introduced at the last moment in the budgeting process and have not benefited from vetting, specifically a request for $1.3M for marsh restoration and other amendments that are not justified through due diligence. They support restoring the marsh and daylighting Willow Creek in the near future, ensuring streets are free of drugs, crime and potholes and ensuring all children can access playgrounds. Reaching agreement the problem the Council is trying to solve along with cost and benefits to solve these problems must occur before committing precious and limited tax dollars. They want to ensure a return on investment and, while the economy is doing well, not commit beyond our means and ensure there is enough in reserves for the future. They encouraged the Mayor, Councilmembers and Staff to solicit input from residents much earlier in the budget process next year so the community's priorities can also be considered. Mr. Hesla recognized there would be conflicts that could not be resolved, and the Council cannot make everyone happy. As citizens, it is their duty to support the City Council and he urged the Council to ask them for help. Laurie Sorensen, Edmonds, made an urgent request for $1M for the marsh and thanked the Council for talking about establishing a webpage with progress milestones. In case some Councilmembers think the marsh project can be funded project later, she quoted from a report given to the Council in January 2017, the Edmonds Marsh is located within Washington State's Water Resource Inventory Area 8, home to three populations of Chinook salmon, all of which are at high risk of extinction. She said the marsh restoration is an urgent and moral issue, not a park for people or paving a road, but restoring habitat that people have destroyed. She supported including funds in the budget to accomplish marsh restoration. She expressed appreciation for the Council, Mayor and Staffs work on this project. Ed Peterson, Edmonds, requested the Council revisit Council President Nelson's request for additional police officers. He thanked the Council for approving funding for the School Resource Officer (SRO), his wife is a paraeducator at the Boys Program on the campus and his daughter is homeschooled through Edmonds Heights. With regard to the broader concept of public safety, there are several items in the Strategic Plan related to the Police Department. In 2009, the Crime Prevention Unit was defunded, a unit that provided 156 active block watch programs, connecting 2600 households with the Police Department. That unit has not been replaced even after nine years of plentiful budgets. He appreciated Mayor Earling's direction to department heads to be prudent but questioned what is being done to help the Police Department be more effective in protecting and serving citizens. He questioned how the Council could vote against funding another FTE for the Police Department and urged them to trust the Police Chief's request for additional resources. Joe Scordino, Edmonds, thanked the Council in advance for approving $1M for marsh restoration, commenting this was an important step to show the City was committed to preserving the environment and restoring errors of the past. He was previously concerned the dates in the CIP/CFP did not put enough priority on the marsh and that nothing would happen for several years. He and Councilmember Buckshnis met with Mayor Earling, Mr. Williams and Ms. Hite today and although it is not clearly reflected in the CIP/CFP, was assured staff is committed to moving forward with marsh restoration. Staff also committed to reporting milestones so the public can see the progress. The public supports this effort; cards have been Edmonds City Council Approved Minutes December 11, 2018 Page 2 prepared by the Save Our Marsh group asking the public to donate to the marsh restoration fund. Open communication and showing that it is a priority for the City will draw more donations. Kari Michelsen, Edmonds, spoke regarding Edmonds Lutheran Church's plans for 85 housing units on 84" Avenue W & 236" Street SW. She and her husband moved to Edmonds after experiencing low barrier housing in Seattle. To illustrate why they had to move, she relayed low barrier admission policies: permanent supportive housing admission policies are designed to screen in rather than screen out applicants with the greatest barriers to housing such as having no or very low income, poor rental history and past evictions or criminal history. Housing programs may have tenant selection policies that prioritize people who have been homeless the longest or who have had the highest service need as evidenced by a high utilization of crisis services which means criminal background, mental health problems and drug and alcohol addictions. Compass says they will have social workers on site at times, but residents are not required to see them. Residents can continue to abuse drugs and alcohol as long as they do not do it onsite or in public, but they can do it on local neighborhood streets. Compass states they focus on all areas of need, including mental health and chemical and alcohol dependency. Their eligibly criteria are set purposefully low so they can provide housing and services to those most in need of permanent housing with income less than 50% AMI. She urged the Council to think about the safety of residents when discussing the possibility of Compass housing in Edmonds. David Preston, Edmonds, Port of Edmonds, welcomed the Council and the citizens of Edmonds to the Christmas Ship party on the dock from 6 to 8 p.m. tomorrow. The ships will be between Anthony's and the plaza area. Puget Sound Express will provide tours of their boat. At 7:20 p.m. the Argosy cruise boat will perform Christmas carols in front of the fishing pier. Music is performed by One Love Bridge. 6. ACTION ITEMS 1. EDMONDS DOWNTOWN ALLIANCE 2019 WORK PLAN AND BUDGET Economic Development/Community Services Director Doherty introduced Kiersten Christensen, President, Edmonds, Downtown Alliance (Ed!), and Carrie Hulbert, Program Manager. The code requires Ed! submit their annual work plan and budget for the coming year by October 31 (which was done). Ms. Christensen reviewed: • Members Advisory Board o President - Kiersten Christensen, Insurance Services Group o Vice President - Matt McCulloch, Peoples Bank o Secretary - Jenny Shore, The Wooden Spoon o Treasurer - Petra Rousu, Savvy Traveler o Apple Catha, Apple Catha Massage Therapy o Mary Kay Sneeringer, Edmonds Bookshop o Mark VonGunten, Ten Gun Design o James Spangler, Spangler Books o Carrie Hulbert, Program Manager (Contract) ■ 2018 Work Plan Implementation o Marketing Campaign ■ Marketing Strategy - Continue to build Ed! messaging to increase awareness of Edmonds as a day trip destination - Create compelling content on EdmondsDowntown.org to highlight Ed! businesses, including services - Increase exposure with a robust digital campaign Edmonds City Council Approved Minutes December 11, 2018 Page 3 - Build social media audience, keeping Edmonds top of mind ■ Display Ad Campaign Feb -Oct - Promoted features on website - The campaign delivered 1,700 conversions with a clickthrough rate of 0.08%, equal to the industry benchmark - "Mother's Day", "Summer Events", and "Fall in Edmonds" had highest conversion rate ■ Facebook Ad Campaign Feb -Oct - Also promoted features on website - Campaign delivered 7,500 conversions with a clickthrough rate of 1.62%, higher than the industry benchmark of 0.9%. - "Summer Events", "Halloween", `Birdfest" and "Family Owned Businesses" had highest conversion rates ■ EdmondsDowntown.org Traffic - Year over year increases during digital campaign (Feb -Oct): - Users up 109% - Sessions up 122% - New users up 108% ■ Social Media - Facebook • 12/l/17: 1,334 followers 12/1/18: 1,904 followers - 43% increase in page followers - Instagram • 12/1/17: 115 posts, 744 followers 12/1/18: 257 posts, 1,205 followers - 62% increase in followers o Holiday Campaign • Holiday Calendar ■ Holiday Trolley o Love, Edmonds Campaign • Brainstorming session with local businesses to create a campaign that embodies what people love about Edmonds. ■ Result is identity that is friendly, approachable, and communicates we're glad you're here o Grant Program ■ Approved three grant requests for - Where's Waldo passport - Edmonds Wine Walks - Edmonds Chamber 4" of July fireworks o Member Engagement & Outreach ■ Regular communication with members via Annual Meeting, Year in Review brochure, email newsletter, new member information o Umbrella Program o After Hours Parking Program ■ Added three bank parking lots in 2018 o Professional Business Resources ■ Helped fund the retail seminar lead by the City, and business seminar series lead by the Chamber • 2019 Proposed Work Plan o Administration o Communication and outreach o Marketing/Holiday Events and Advertising o Appearance and Environment Edmonds City Council Approved Minutes December 11, 2018 Page 4 o Ed! Grant Program ■ 2019 Proposed Budget Administration $ 25,200 Communication and Outreach $ 5,300 Budget Supplement from Fund Balance for Conference $ 700 Marketing Advertising/Social Media $ 29,460 Website $ 2,000 Budget Supplement from Fund Balance for Ferry Line Mktg $ 600 Holiday Events and Advertising Program Management $ 10,345 Budget Supplement from Fund Balance for Grant Program $ 5,000 Appearance & Environment Umbrella Program $ 9,000 Budget Supplement for After Hours Parking Signs $ 5,000 Program Management 2,40 TOTAL BUDGETED EXPENDITURES $102,235 ■ 2013-2019 Budget Summary ■ Advisory Board Meetings 2nd and 4th Thursday at ECA Councilmember Buckshnis commented Ed! has done wonders since they started. She inquired about delinquencies. Ms. Christensen said for 2019, Ed! is projected to collect 92% of assessments. Mr. Doherty said the City is in charge of collecting delinquencies; new approaches to compliance are being explored. Councilmember Buckshnis said collecting 92% is way up. Mr. Doherty said last year was similar, compliance has improved over time. Ms. Christensen said board members are researching how other business improvement districts (BID) handle collections. Councilmember Buckshnis observed it is the same businesses that are continually delinquent. Councilmember Tibbott said the photographs and website presence provide a lively and engaging view of Edmonds. He attended the annual meeting in 2018 and noticed how Ed! supports businesses with workshops, advertising ideas, information on setting up a business, etc. a value that Ed! is providing that he hoped would continue. Councilmember Fraley-Monillas said she has seen Ed! umbrellas along Hwy 99. When coming to downtown Edmonds last week for an early morning meeting she saw six people with Ed! umbrellas between Hamburger Harry's and City Hall which indicates the branding is very successful. She commended Ed! for working with banks on after-hours parking, noting Edmonds has more banks per capita than any other city in Washington including a lot downtown and she was glad their lots were being used for afterhours parking. Councilmember Mesaros commented Ed! successes are evident as the City flourishes. When shopping downtown the Saturday after Thanksgiving, he delighted in the vibrancy and activity. He utilized the afterhours parking himself recently, noting it adds to the flavor of the City. He suggested interconnectivity between the Ed! website and other events' websites. Councilmember Teitzel thanked Ed! for their excellent work and for what they do for Edmonds. He asked if consideration was being given to expanding the footprint of Ed! to include waterfront business and if so, whether those businesses were supportive. Ms. Christensen said they are very interested in that; board members have talked to several businesses on the waterfront, in Salish in particular and have received positive feedback; those conversations will continue in 2019. Edmonds City Council Approved Minutes December 11, 2018 Page 5 Councilmember Johnson, an early supporter of the BID, offered constructive feedback, recalling she made the same comment last year. The original Ordinance 3909 lists six items in the BID's scope of work. The first item is marketing and hospitality; although there are no percentages in the ordinance, marketing, web design and administration seem like a large part of the budget. Another item in the scope of work is transportation; she recognized the holiday trolley and the afterhours parking, but that represents only 5% of the annual budget. In talking with downtown business owners, one of their main concerns is parking; however, there is little focus on employee parking. Ed! is uniquely positioned to considered that such as the number of spaces each business needs and where employees park. The City is purchasing new parking software that will not allow drivers to move their cars during the day within the block. She hoped Ed!'s budget would track more closely to the original ordinance and suggested including employee parking in the work plan. She thanked Ed! for all their work and hoped it they had more than a marketing and administration focus because they could do so much more. Council President Nelson thanked Ed! for their new campaign, Love, Edmonds, commenting now more than ever we need to see love expressed in more and different ways and he looked forward to seeing that campaign develop. He inquired about bike racks, if they were being used and if there was any interest in expansion. Ms. Christensen said expansion is not part of the work plan. From the feedback she has received, people are utilizing them, but the board has not heard an outcry for more at this time. COUNCILMEMBER MESAROS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO APPROVE EDMONDS DOWNTOWN ALLIANCE 2019 WORK PLAN AND BUDGET. MOTION CARRIED UNANIMOUSLY. 2. 2019 PROPOSED BUDGET DELIBERATIONS AND ADOPTION OF THE 2019 BUDGET Finance Director Scott James reviewed: • There is one new amendment (italicized and shaded in following table) • Applying the same process as last week: o Each Councilmember explains the reasoning for their amendment o Staff offers their reasoning for keeping the item in the budget o Council votes on the amendments • Council may adopt the 2019 budget as amended COUNCIL'S BUDGET CHANGES Budget Cash Submitter & Yes Item Book Description Increase Request # No # Page # Decrease GENERAL FUND 001 1 57 Reduce City's SnoCo Health Dist Contribution to $20,815 Fraley-Monillas Yes $0.50/pp#1 2 57 Carryforward Unallocated 2018 Council ($93,740) Buckshnis #1 Yes Contingency 3 DP#60 Remove Tree Board Minute Taker $1,500 Buckshnis #2 Yes 4 101 New DP — Add Tree Board Supplies for brochures ($1,000) Buckshnis #3 Yes 5 DP#96 Remove ECA "Enhance our Arts & Culture" $0 Buckshnis #4 No contribution 6 DP#47 Remove federal lobbyist $0 Buckshnis #5 & Yes Nelson #5 7 101 New DP — Add new position "City Arborist" ($20,000) Buckshnis #6 Yes 8 51 New DP — Add increase for Court Security ($33,000) Buckshnis #7 Yes 9 DP#58 Remove Five Corners Consultant $30,000 Buckshnis #8 & Yes Nelson #3 Edmonds City Council Approved Minutes December 11, 2018 Page 6 10 DP#65 Remove Youth Services Coordinator $53,717 - $23,717 = $30,000) $23,717 Buckshnis #9 & Nelson #8 Yes 11 DP#77 Remove Car for SRO — negotiate $0 Buckshnis #10 No 12 DP#49 Remove Increase for PIO/Communications Specialist $18,000 Buckshnis #I I Nelson #6 Yes 13 33 New DP — Add Carryforward for Professional Services ($132,000) Buckshnis # 12 Yes 14 DP#3 Remove Contract Project Management Support $45,000 Teitzel #1 & Nelson #1 Yes 15 DP#53 Remove National Citizen Survey $22,000 Teitzel #2 Yes 16 DP#48 Remove Creative District Support $0 Nelson #2 No 17 DP#50 Remove Diversity Commission Support Staff $20,000 Nelson #7 Yes 18 DP#9 Remove Safety & Risk Disaster Coordinator $0 Nelson #9 & Johnson #5 No W/D 19 DP#10 Remove Professional Services Consultant $0 Nelson #10 No 20 DP# Remove Electronic Parking Software $0 Nelson #13 No 21 DP# Reduce Downtown Parking Stud $ 35,000 Nelson #14 Yes 22 DP# Reduce Capital Renewal Projects $0 Nelson #17 No 23 DP#84 Remove State of the City Scribe $0 Johnson #7 No 24 DP#84 Remove Pedestrian Task Force Education Program LO Tibbott #1 W/D New New Consultant for Diversity Commission 12 000 Frale -Monillas Yes Impacts to General Fund Ending Cash ($75,708) STREET FUND 111 25 DP #12 Remove Sidewalk Crew $0 Nelson #4 No Impacts to Fund 112 Ending Cash $0 STREET CONSTRUCTION FUND 112 YV vU41 I I ROdU'GyJSaM {af16 `I14aP--nyRna--q;s See Item #32 Below for replacement request 0 Burakn�L 27 DP #97 Reduce Pavement Preservation Fund $0 Nelson #16 No Impacts to Fund 112 Ending Cash $0 REET 2 FUND 125 28 DP#119 Reduce Gateway Sign Re lacement25 000 Nelson #15 Yes Impacts to Fund 125 Ending Cash $25,000 REET 1 FUND 126 29 DP #104 Relocate staff proposed location of Admiral Way crosswalk S70,000 Teitzel #4 Yes Impacts to Fund 126 Ending Cash $70,000 Unidentified Sources of Funds for New Projects 30 New DP Assessible PIMround Updates ($200,000) Nelson #18 Yes 31 New DP Edmonds Dru Task Force 2 Police Officers $0 Nelson #19 No 32 Replace Item 26 Edmonds Marsh Restoration Fundin g ($1,000,000) Buckshnis #12 Impacts to Fund XXX Ending Cash $1,200,000 WATER FUND 421 33 DP#18 Remove Vacuum Machine 70 000 Johnson #2 Impacts to Fund 421 Ending Cash $70,000 STORM FUND 422 34 DP#23 Remove one-time expenses from Decision Package $ 21,000 Johnson #3 35 DP#28 Remove Dayton Street Pump Station $907.000 Johnson #4 Impacts to Fund 422 Ending Cash $928,000 TECHNOLOGY RENTAL FUND 512 -3b $0 "'i, T W/D 3-7 DP#87 $0 Jehff5en-$ W/D Impacts to Fund 512 Ending Cash UO Total Councilmember Requested Changes Edmonds City Council Approved Minutes December 11, 2018 Page 7 Council began consideration of the remaining Council requested budget changes: 32. Edmonds Marsh Restoration Funding - $1 M (Continued from December 4, 2018 meeting) Mr. James recalled during last week's discussion, Mayor Earling offered to return with a recommendation for funding. Councilmember Buckshnis thanked Mayor Earling, Mr. Williams, Ms. Hite and Mr. Scordino for meeting today. A timeline was created beginning in January 2019 which includes grant requests, posting funders for the meet and greet, etc. She is on WRIA 8 and Puget Sound Partnership Salmon Recovery Council as well as on the WRIA 8 Salmon Recovery Grant Committee. She acknowledged many people are confused why $1M is suddenly needed. This project has been in process for a long time; the Marina Beach Master Plan was adopted 3-4 years ago, and daylighting of Willow Creek was added to WRIA 8's short list 8 years ago awaiting the land owner agreement with WSDOT. It is hoped by January 2019, WSDOT will take possession of the property and will recognize how wonderful it would be to have a creek restored to its natural environment which includes daylighting Willow Creek through Marina Beach, under the culverts, meandering through part of the Unocal property and ending up in the Edmonds Marsh. Staff plans to make a presentation in January 2019. Councilmember Buckshnis explained the CIP and CFP have been updated to reflect the current process. The reason she is requesting a $1 M is there is a 10% threshold when seeking grants; the City will be seeking $12M or more in grants and the $1M will be an indicator to granting agencies that the City is serious about the project. The $1.3M total would represent 10%. Those funds could either be used for matching funds or to show the City has skin in the game. She anticipated it would take two years to acquire the funding. For example, Wayne Golf Course in Bothell received $11M in 2 years. Design and permitting will follow in 2021 and construction in 2022. She summarized these funds demonstrate to the granting agencies that Edmonds wants change for the environment now. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO INCLUDE $1 MILLION FOR MARSH RESTORATION FUND 017. Councilmember Teitzel said he entirely supports aggressively seeking grant funding to move forward as quickly as possible with marsh restoration. He asked about the threshold amount that was needed to pursue grants. He referred to the Waterfront Connector project, an estimated $26M cost, recalling Edmonds put approximately $250,000 in local funds into that project and has been able to pursue federal and state grants as well as local funds from the Port of Edmonds. Public Works Director Phil Williams answered that was generally correct. The City initially received a $500,000 direct appropriation from the State legislature that matched funds contributed by the City, BNSF, Sound Transit and Community Transit for a total of approximately $750,000 that was used to fund the original alternatives analysis. An additional $700,000 was provided by the State to take the project to the next level, plus $150,000 in City funds and other partners, a total of $1.7M. He agreed the funds contributed by the City were about $250,000 to date. Last year the State legislature appropriated $6M which is not available until July 1, 2019 although staff plans to request some of those funds be available sooner to continue progress on the project. He acknowledged that was not a grant, it was a direct appropriation from the legislature. When the City was talking with federal agencies last week about potential transportation grants, they take notice of that $7.5M in funding. Councilmember Teitzel summarized to date the City has allocated $250,000 to leverage additional funds to support that project. Mr. Williams agreed. Councilmember Teitzel asked what was available in the budget without stressing it too much in 2019. Mr. James reviewed the following funding recommendation: Item # Funding Option for $1M Marsh Request Amount 1 Marsh Fund 018 Ending Fund Balance $300,000 2 Cut 126 Land Acquisition DP #125 $200,000 Edmonds City Council Approved Minutes December 11, 2018 Page 8 3 Use Stormwater Funds $250,000 4 Use General Fund $'s to include Council Amendment #2 - $93,740 $100,000 5 REET 2 Fund 125 Ending Fund Balance $75,000 6 REET 1 Fund 126 Ending Fund Balance $75,000 Total $1,000,000 Councilmember Teitzel summarized exclusive of the $300,000 that is already in the Marsh Restoration Fund, the total was $700,000. Mr. James agreed. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO AMEND THE MOTION TO ALLOCATE $700,000 AS DISPLAYED IN ADDITION TO THE $300,000 IN THE FUND FOR A TOTAL OF $1 MILLION TO SHOW EDMONDS IS COMMITTED TO THIS AND TO AGGRESSIVELY PURSUE GRANT FUNDS. Councilmember Mesaros asked if the daylighting of Willow Creek and Marina Beach needed to be done sequentially. Mr. Williams said there are advantages to both projects from looking at them as a package. Councilmember Mesaros observed that package is $12-15M and asked how far along the design needed to be to have a firmer budget. Mr. Williams said new cost estimates could be expected at 30% and 60% design levels. Councilmember Mesaros asked how much is in Fund 017 now. Mr. James answered the Marsh Fund has $300,000. Councilmember Mesaros asked the source of the funds in Councilmember Buckshnis' motion.. Councilmember Buckshnis said in addition to the funds listed in staff's recommendation, the City is experiencing record sales tax. Although it should not be her responsibility to identify the funding source, there are also under -budget amounts and funds available in variety of sources such as the General Fund, REET, park impact fees, etc. Council President Nelson recalled last year the Council strongly supported setting aside $2M for Civic Field, a park. Councilmember Buckshnis' request is to set aside $1M for something that not only improves the community by creating an actual functioning marsh that reduces flooding, it will also reduce the amount of stormwater pollution that goes into Puget Sound as well as provide salmon habitat. This is a small investment to provide matching funds and he supported Councilmember Buckshnis' motion. Councilmember Johnson said comparing transportation matching funds with salmon recovery matching funds was like comparing apples and oranges. At the federal level, there are often local match requirements, but that can include any non-federal funds such as contributions from the Port, State, etc. She recalled an 18% match for the roundabout and asked how federal matching programs work for transportation projects. Mr. Williams said he could explain how it had worked in the recent past on major transportation projects, but the current paradigm regarding the expected match from local governments may be quite different. Traditionally, for transportation funds that are programmed through PSRC, a 13.5% local match if it was a really meritorious project and competitive. He agreed the paradigm for natural resource grants could be different and may require higher local participation. Councilmember Johnson said she saw the logic of following the $250,000 in City funds in the Waterfront Connector project but said it is blank paper when asking for funding for marsh and experience has shown 10% is expected. The total cost of the marsh restoration is unknown, but $1M could be leveraged into $IOM; $1M is a baseline. Mr. Williams was unclear whether $1M or $1.3M would be needed in the 2019 budget as the funds would not be accessed in 2019 but work would continue on the other issues Councilmember Buckshnis identified in her opening remarks. Even if a grant has a 35% local match requirement, often another funding sources can be identified that will be acceptable as the local match; sometimes one grant can serve as the match for another grant depending on the grant source and criteria. Staff has gotten pretty good at piecing that together to keep the City's investment as small as possible. Edmonds City Council Approved Minutes December 11, 2018 Page 9 Councilmember Johnson did not think a 35% match would be needed and expressed support for including $1M in the budget. The funding recommendation hurts in several ways such eliminating the $200,000 in Fund 126 for land acquisition; opportunities may arise that the City will not be able to achieve. However, she was supportive of the marsh restoration and she supported Councilmember Buckshnis' motion. Councilmember Mesaros looked forward to the marsh study report that will be available in 2019 which will add to the understanding of the marsh. He agreed with Council President Nelson about the importance of moving forward, but as he pondered all the opportunities, he realized there was only so much money to go around. He concluded although it was likely nothing would be spent in 2019, it was important to demonstrate to potential funding agencies that the City has skin in the game. Mr. Williams said the City will spend money on this project in 2019 but not $1M or $1.3M. Councilmember Tibbott read a quote from Councilmember Buckshnis in previous minutes, this is no time to drag our feet as the environment is deteriorating daily. The $1M set aside will show that Edmonds is serious about marsh restoration, by extension the Marina Beach master planning process. When this amendment was originally proposed, $1M was the skin in the game solution. Now the motion is $1.3M, an estimation of what 10% of the restoration plan. The $1M skin in the game contribution is a leap of faith and staff has developed a funding proposal that includes the $300,000 balance in the marsh fund. He was willing to fund the $1M to have skin in the game, but it was a giant leap of faith to go to $1.3M for a plan that is not even pencil on a napkin. The amendment by Councilmember Teitzel represents a commitment by the City along with other commitments to the marsh such as Students Saving Salmon, the marsh study, etc. to move this project forward. He was supportive of the amendment. Councilmember Teitzel said there appear to be two major purposes, 1) preserve the environment and restore the marsh, and 2) be good stewards of taxpayer resources. If the City had unlimited funds, this would be a no brainer; but that is not the case so tradeoffs are necessary. The question is what does the City need to put on the table to pursue grant funding in early 2019; the proposal from staff achieves that. Councilmember Fraley-Monillas asked for clarification of the amendment. City Attorney Jeff Mr. Taraday relayed his understanding the amendment was the funding plan proposed by staff. Councilmember Teitzel agreed. Mr. Taraday's understanding of Councilmember Buckshnis' motion was it was moving $1M of new money into Fund 017 but the sources were not specified. Councilmember Fraley-Monillas summarized Councilmember Buckshnis' motion would provide a total of $1.3 M in the marsh restoration fund. Mr. Taraday agreed. With that clarification, Councilmember Fraley-Monillas said this is much ado about nothing. The $1M can be taken out of reserves and put in a fund to support the marsh. It's not as if $1M will be put in the fund and then spent on insignificant things related to the marsh; the funds have a specific purpose. Whether the funds are in reserves or a segregated, hopefully in an interest-bearing account, it is the same thing. With regard to Councilmember Teitzel's comment about unlimited funds, Councilmember Fraley-Monillas recalled the City just put $3M on hold for the ECA as collateral for their loan, $2M to the senior center which she felt was a great idea, and hired two accountants at the cost of $250,000/year that were needed for workloads. Councilmember Fraley-Monillas said the City seems to be able to spend money freely when there are special projects. Issues related to the marsh have been ongoing since before she joined the Council. The money will not be spent if it is not needed, it will remain in the fund. If an emergency or natural disaster occurred in the City and funds were needed, those funds would be available. She was unclear what the apprehension was about adding $1M to the existing $300,000 to let funding agencies know the City was serious. She concluded it was much ado about absolutely nothing and it was no different than leaving the Edmonds City Council Approved Minutes December 11, 2018 Page 10 funds in reserve. She supported Councilmember Buckshnis' motion to add $1M to the $300,000 in the marsh restoration fund. Councilmember Buckshnis referred to page 64 of the CIP/CFP which shows the Edmonds Marsh Willow Creek daylighting is $11.1M and Marina Beach is $3M a total of $14 million but that was rounded down to $13M. The 10% supports the amounts in the CIP/CFP. She has been involved in grant funding for the past 5 years and has read over 100 grants, a certain percentage for a match is needed, 10-15%. Like Councilmember Fraley-Monillas said, the money will be there and if it is not spent in 2019, it will be used for future grants. UPON ROLL CALL, AMENDMENT FAILED (2-5), COUNCILMEMBERS TEITZEL AND TIBBOTT VOTING YES; AND COUNCIL PRESIDENT NELSON AND COUNCILMEMBERS JOHNSON, FRALEY-MONILLAS, BUCKSHNIS AND MESAROS VOTING NO. Mayor Earling read a statement into record. "Before going to a vote on this important issue, I must interject some observations and comments for your consideration regarding the overall process to date of reviewing, amending and approving the 2019 budget. In the normal course of events in the past, the administration has prepared the budget over several months of work by department staff and directors which I synthetize and presents as my proposed budget. The Council has then traditionally used the remainder of the year to analyze and consider his proposed budget, discuss and query staff about it and engage in the process of review, consideration and amendment that leads eventually to budget approval, sometimes late in the year. Last year there was a degree of angst over a laborious process of budget review and approval which included a flurry of late -term budget amendments. In response to what I welcomed as an innovative proposal by Council President Nelson and several Councilmembers, for the first time this year, we did this differently. The Council held a budget retreat and identified issues or projects of priority to the Council. Subsequently, the Council President led the Council through a process of distilling them down to the top 14 priorities that were conveyed to me and my staff for consideration in preparing the proposed 2019 budget. In the spirit of collaboration and goodwill, I accepted the Council's early contributions to the 2019 budget process with the mutual understanding that this new process would obviate the confusion, disharmony and long evenings resulting from another flurry of late term amendments. For that reason, in direct response to the Council's early input, the staff and I creatively incorporated over $1M in the proposed budget to fund the Council's top priorities. Nevertheless, this new process not meet its objective. Over the past two months we have undergone an even more exacting, confusing, costly and mostly late term amendments. However, even more important than the undoing of what the administration believed was a well-intentioned and innovative new budget process, what is of greater concern to me is the fiscal impact of last year's and this year's amendments. You may recall last year we set aside $760,000 as intended additional reserves. However, the Council's added projects and priorities virtually stripped away that entire reserve. This year in addition to the over $1M included in my budget to cover the Council's top priorities, through the process of amendments thus far, $865,000 has been added. Last week, in an effort to set aside $1M for marsh restoration, I committed to finding another $700,000 in funds. The running total in awards of $1.6M in recent amendments over the $1M already included in the budget to fund top priorities. In other words, $2.6M additional. Folks, we need to stop the spending spree. The economy is softening, and we hear news of lowering stock values, higher interest rates, lower house values and factory layoffs every other day. While I am not crying recession on the horizon, it is time to be cautious in light of these trends. For this reason, I need to ask you to be prudent in taking this vote. We've committed to adding $700,000 to the existing $300,000 for marsh restoration, a total $1M. This is a noteworthy and impressive amount for a city the size of Edmonds to Edmonds City Council Approved Minutes December 11, 2018 Page 11 amass as a local march for regional and state funds. It is in fact, enough. We cannot afford another $300,000 on top of that and I hope you will vote in your final vote accordingly." Council President Nelson said while he appreciated Mayor Earling's comments, the Council tried to do something different this year and telegraph some of their priorities to the Mayor in advance; however, at the end of the day, it takes two to tango. The Council can tell the Mayor their interests but does not learn what the administration plans to fund until the legal last minute in October. He would love to hear the administration's funding priorities well before October. The question is what are residents' priorities? Priorities can be determined by how they are funded and he believed in prioritizing the marsh by funding it to the fullest possible. Councilmember Buckshnis said she was offended when Mayor Earling told her the Dayton Street Pump funding was for marsh restoration. Her marsh restoration is the daylighting of Willow Creek for Chinook salmon recovery, not to reduce Dayton Street flooding from Shellabarger Creek. She suggested pulling the Dayton Street pump station to provide the funding. Like Council President Nelson said, Mayor Earling can take whatever he thought she meant by marsh restoration and include it in the budget but that was not what she meant. Instead, she is requesting funding for marsh restoration which is the daylighting of Willow Creek, Marina Beach master planning and recovery of Chinook salmon. Mr. Taraday clarified the motion on the floor did not specify a funding source. To actually adopt a budget that effectuates the current motion, a funding source needs to be identified. One could assume the $700,000 is accounted for in staff's recommendation, but that is not specified in the motion and even if that is the assumption, a funding source for the remaining $300,000 needs to be identified. The Council did not need to determine the funding source prior to the vote but it needed to be done before the budget is adopted. Councilmember Johnson said she has proposed several amendments that would reduce funds in the budget. Councilmember Buckshnis asked the amount set aside for the Dayton Street pump station. Mr. Williams answered $500,000, noting there is an amendment proposed by Councilmember Johnson to remove that funding and essentially stop that project. He emphasized the Dayton Street pump station is a necessary antecedent project to the marsh project. He clarified it was not part of the marsh restoration, but it is an important accessory project to it because when problems occur, every property is flooded, and some of the stormwater drains through Harbor Square and into the marsh. Councilmember Buckshnis said there are FEMA funds available, but apparently staff does not want to wait for the FEMA funds. Mr. Williams said staff applied for FEMA funds 18 months ago, but FEMA not gotten to acting on that application. As a result, two potential backup sources were identified, 1) stormwater revenues, or 2) asking the legislature for the funds in the capital budget. It is still staff s intent to tie the projects, Marina Beach, marsh restoration and the stormwater problem on Dayton Street, together in a $500,000 funding request. He did not see waiting another 12 months to see if FEMA would fund the project. For the benefit of the audience, Councilmember Teitzel assured each Councilmember supports marsh restoration as a top priority. However, Councilmembers also have a responsibility as elected officials to be good stewards of taxpayer money. There are a lot of high priorities in 2019, marsh restoration is one of them, but it is not the only one so Councilmembers must be very judicious in how they allocate scarce taxpayer dollars. He was disappointed his amendment was not approved as it would have provided the necessary funding to pursue grants. He will oppose the main motion for that reason. Councilmember Fraley-Monillas expressed support for the main motion, commenting the Council has spent a lot of money in a lot of different arenas that could be used for citizens' priorities. For example, the $3M that was locked up as collateral for ECA loan and although there was some validity to doing that, that's Edmonds City Council Approved Minutes December 11, 2018 Page 12 $3M the City cannot touch. She reiterated her concern with hiring two accountants for $250,000, commenting one year of those positions would fund the additional $300,000 for marsh restoration. She suggested pulling the funds out of reserves just like was done with the money for the ECA and just sit on it. She asked whether the funds used to purchase CDs as collateral for the ECA came from reserves. Mr. James said an investment that matured was converted into that investment. Councilmember Fraley-Monillas asked if that investment made $300,000. Mr. James said the investment is earning a fair amount of interest. Councilmember Fraley-Monillas summarized there was a way around this and it did not need to be so adversarial. MOTION CARRIED (5-2), COUNCILMEMBERS TEITZEL AND TIBBOTT VOTING NO. 33. Remove Vacuum Machine - $70,000 Councilmember Johnson relayed the explanation said this equipment would be mounted on a flatbed truck and would be used by the water meter reader and the water utility. She was unaware that the water meter reader used that truck and asked about the logistics of using this expensive vacuum. Mr. Williams said there are several uses for this small machine. Vactor trucks that vacuum water, gravel, dirt, etc. as well as have a jet to clean sewer and storm lines and then vacuum up the debris do not fit in alleys. This vacuum machine only vacuums, it's much smaller and skid mounted on a flatbed truck. It will primarily be used to remove sediment and debris from water valve chambers and water meters. Currently, when repairs are needed, debris is removed by hand with a garden trowel, often in the middle of the street coned off from traffic. The vacuum makes that job much faster and personnel are less exposed. He recommended approval, acknowledging staff could get along without it but now would be a good time to acquire it. Councilmember Johnson recalled staff's explanation indicated the number of water meters in the City. She asked whether the water meter reader would use this equipment when checking water usage. Mr. Williams answered it would be used when doing meter maintenance. The meter reader does two tasks, reading meters and meter maintenance; another crew does valve maintenance. Councilmember Johnson asked how many crews there are. Mr. Williams answered there are 16 people in water/sewer, 2 leads, a manager and 7 in water and 6 in sewer; crews are usually 2 people. The vacuum would be used primarily by water which is why 100% of the funding is from water fund. Councilmember Johnson asked about having one vacuum mounted on one vehicle but potentially used by multiple crews. Mr. Williams said it could easily be moved with a forklift onto another flatbed. Councilmember Johnson concluded only one team could use the vacuum at a time. Councilmember Johnson recalled in the past staff was asked for one-time expenditures. This was a new project and she was not convinced it was warranted at this time when a trowel and brushes could be used. She compared the expenditure for this equipment to the number of police support it could fund. In the overall budget, a $70,000 reduction would get closer to the $300,000 need for the marsh. COUNCILMEMBER JOHNSON MOVED, SECONDED BY COUNCIL PRESIDENT NELSON, TO ELIMINATE THE VACUUM IN THIS BUDGET CYCLE. Councilmember Mesaros observed the funding for the vacuum was from the water fund. Mr. Williams agreed. Councilmember Mesaros asked if the water fund could be utilized to fund marsh restoration. Mr. Williams answered no. Councilmember Tibbott recalled when he ran a business, he purchased tools that saved time for his employees, and especially for highly paid employees, he preferred a machine do the laborious part of a task. He assumed the City employees were paid $30-$40/hour, noting if the job could be accomplished more quickly, that resulted in savings. He asked how long it would take to recoup the cost of the vacuum. Mr. Williams said he had not done that calculation. Councilmember Tibbott said without the vacuum, the City Edmonds City Council Approved Minutes December 11, 2018 Page 13 is effectively asking workers making $30-$40/hour to use a hand trowel and broom instead of a machine that could do the work much more quickly, leaving employees to do work that requires more expertise. He did not support the motion. Councilmember Fraley-Monillas asked whether the City currently has a vactor and isn't that what this equipment is. Mr. Williams answered this is not a vactor. The only thing it has in common with a vactor is both can vacuum. Councilmember Fraley-Monillas asked if a vactor can do the work of the vacuum. Mr. Williams answered no, it is too big and unwieldly and the vactors are dedicated to cleaning sewer and storm lines. Councilmember Fraley-Monillas asked if the City currently has a vacuum machine. Mr. Williams answered no, the City has never had one, staff has been doing the work manually. It is becoming obvious that that is wasteful of their time and a machine would be helpful. Councilmember Fraley-Monillas asked what other things the water fund could be used for. Mr. Williams answered it is an enterprise fund so anything related to water can be funded by rate revenues, from maintenance of the system to buying water. Councilmember Fraley-Monillas asked what other purchases are made from the water fund. Mr. Williams said that is the only decision package in 2019 for the entire $10M water fund. Councilmember Fraley-Monillas asked if anything was purchased from the water fund last year. Mr. Williams answered yes, a vactor; the water, stormwater and sewer all have vactors, all of which have jobs. The vacuum is just to assist the employees who clean out valve chambers and water meters by hand to do valve and meter maintenance. 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. 34. Remove one-time expenses from Decision Package - $21,000 Councilmember Johnson explained DP 23 is a combination of three line items, 1) 531-40-48 repair and maintenance $3500, a one-time budget item in 2018 and requesting it be an ongoing item in the 2019 budget, 2) 531-90-48 repair and maintenance $7000 requesting a 2018 budget item be ongoing, and 3) 431-90-49 miscellaneous $10,500, a one-time increase and requesting it be ongoing in the 2019 budget. She commented it was one thing to ask for decision package and another to ask for items to be converted to ongoing and she found it difficult to understand the reason. Councilmember Mesaros asked why Councilmember Johnson's amendment was $21,000 but DP #23 is $22,500. Mr. Williams said in the past everything was a separate decision package; this year a decision was made to include changes in annual operating maintenance line items in one decision package. He explained 531-40-48 is a $3500 reduction, 531-90-48 should have been an ongoing item in the 2018 budget and into the future, and miscellaneous is a .005% set aside to be able to react to unknowns in a $2M budget. He summarized it is an attempt to correct deviations in line items in the past. Councilmember Mesaros asked if it was $21,000 or $22,500. Mr. Williams said Councilmember Johnson's amendment applies to the last three items which total $14,000 because the first item ($3,500) is a deduct. Councilmember Johnson said the first repair and maintenance is stormwater and asked what the second was for. Mr. Williams answered the stormwater budget is divided into several subcategories including admin, repair and maintenance, etc. Councilmember Johnson asked what utility it was for. Mr. Williams answered stormwater 422. Councilmember Johnson asked if staff s request was to make the $3500 decrease ongoing. Mr. Williams answered yes, the net is $14,000. He said repair and maintenance items are best guesses for what will be required during the year. Staff will repair whatever needs to be repaired and if more is spent than is budgeted, staff will request a budget amendment. If the funds are not needed, they are not spent. Edmonds City Council Approved Minutes December 11, 2018 Page 14 COUNCILMEMBER JOHNSON MOVED TO REDUCE DECISION PACKAGE #23 BY $14,000. MOTION DIED FOR LACK OF A SECOND. 35. Remove Dayton Pump Station - $907,000 COUNCILMEMBER JOHNSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO ELIMINATE DECISION PACKAGE 28. Councilmember Johnson said this project is warranted but her concern was using this as a backup. Funds have already been allocated for this project from Snohomish County and the City's stormwater fund and three other revenue sources including the stormwater revenues, the legislature and FEMA. She suggested moving this project out one year to collect the other funds first. Councilmember Buckshnis asked why DP #25 was separate from DP #28; they total $1.4M for the Dayton Street pump station. She observed this did not include the additional $500,000 that the State will be asked to allocate. Mr. Williams said this is the amount that was believed would be spent in 2019; there are funds to be spent in 2020 as well. The $1M comes from rate revenue, a $545,000 low interest loan from Snohomish County and it was hoped FEMA would provide the missing $500,000. Since FEMA has been uncommunicative for the past 18 months, staff was trying to identify another funding source. He said this project is part of the overall plan to restore the marsh and deal with the stormwater and flooding and it needs to be packaged as such so the legislature can see the benefit. The project would benefit Ferries because of flooding in the ferry holding lanes which require toll booth workers to wear rubber boots. Councilmember Buckshnis observed there are two separate decision packages totaling $1.4M. The 2019 CFP shows $1.9M spent in 2019. Mr. Williams answered that could happen but it was unlikely. Councilmember Buckshnis recalled the lobbyist, Ms. Ziegler, had the marsh as priority but it was the Dayton Street pump station as Mayor Earling stated versus Daylighting Willow Creek and salmon recovery. She asked the amount requested from the state legislature for the Dayton Street pump station. Mr. Williams answered $500,000; that ask will be made when the legislature makes requests for the capital budget. Councilmember Buckshnis asked if that was to offset DP #25. Mr. Williams answered the $545,000 loan plus $500,000 from the state (if the legislature provided it), was approximately $1M, it is about a $2M project, $1 M of stormwater revenue would be needed. The loan has been secured, the Fund 422 revenues have been identified, and the missing piece is the $500,000. If FEMA provides a hazard mitigation grant (which requires no match) early in 2019, the City would obviously accept that. Funding from the legislature is a backup source and funds from rate revenue is a further backup. Councilmember Buckshnis said the Council was being asked to approve $1.4M in the budget for the Dayton Street pump station in DP #25 and #28. Mr. Williams agreed. Councilmember Buckshnis said Councilmember Johnson's proposal is to remove DP #28, $907,000. COUNCILMEMBER JOHNSON WITHDREW HER MOTION WITH THE AGREEMENT OF THE SECOND. COUNCILMEMBER JOHNSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO ELIMINATE $500,000 FROM DECISION PACKAGE 25. Councilmember Johnson said eliminating this decision package would rely on other sources of revenue such as FEMA, legislature and stormwater revenues. As this is a short legislative session, a decision should be available shortly. She did not like the idea of have a fourth revenue source in play in case the other three did not work out. There has never been a Dayton Street pump station, the situation has existed for at least 35 years and she believed it would last one more year. She was hopeful the other funding sources, specifically FEMA and the legislature, would be successful. Edmonds City Council Approved Minutes December 11, 2018 Page 15 Councilmember Teitzel asked if a mid -year budget amendment could be proposed if the work needed to be done in 2019 and FEMA did not provide $500,000. Mr. Williams answered it could but removing $500,000 from DP #25 would mean no work would be done on the project next year until the funds were available from one of the sources; it would stop all momentum on the project. Councilmember Teitzel envisioned three years in the future, Willow Creek has been daylighted, the tide gate is open for the most part, and there is a storm surge accompanied by a rain storm; if this pump station was in place, would it help mitigation flooding. Mr. Williams said that is exactly the reason for the project. The intent is to open and close the tide gate more frequently and more proactively but that marginally increases flooding risks. The Dayton Street pump station is compatible with the marsh restoration and a necessary antecedent. Councilmember Buckshnis agreed with Councilmember Johnson, stating the Dayton Street flooding from Shellabarger Creek and the eastern marsh. That could be rectified by drilling underneath because the culverts under SR 104 are not large enough to allow free flow from east to west. She was hopeful the FEMA funds would be provided and expressed support for the motion. Mr. Williams disagreed, commenting Councilmember Buckshnis' analysis did not go far enough. When high flows come down Shellabarger Creek, the current culverts do not allow enough to enter the marsh, the excess goes north into the channel on the east side of SR 104 and mixes with all the other stormwater coming into that intersection. Everything from Salish Crossing, Harbor Square, Dayton Street, that entire drainage basin contributes to flooding in that location, creating one big puddle. The pump station would draw out the large dynamiter storm pipe in Dayton, fully surcharged because it is flooding, and create space for water instead of running into the marsh. With the tide gate is closed, storage can be created in the marsh for stormwater. If the tide gate is open, a free exchange is allowed. There needs to be a way to get rid of the stormwater. By the time there is flooding, the source cannot be distinguished, but it needs to go somewhere. Councilmember Buckshnis said Harbor Square hasn't flooded for several years. Mr. Williams said there has been flooding. Councilmember Buckshnis preferred to give the FEMA funds and the legislature a chance. Councilmember Mesaros said testimony from citizens over the last 3-4 weeks about the urgency of acting and moving forward swayed his vote regarding the marsh. He was not previously convinced of the need to set aside $1.3M, but after hearing the testimony and thinking through the options, he felt it was important to vote yes. This project is something that can be done right now to forestall stormwater runoff into the marsh and he did not understand some Councilmembers' hesitancy to act. This is one of the steps necessary to protect the marsh. He will vote against the motion due to his belief it was important to forestall stormwater runoff into the marsh. Councilmember Johnson said she did not disagree this was an important project, but she disagreed with the timing. One of the reasons she wanted to postpone it was to complete the marsh study being conducted by Windward. It has been noted there is very little ability for the eastern marsh to absorb water, a great deal of silting has occurred under SR 104 into the marsh, there are gradient problems, the culvert not operate appropriately and most of water is channeled down Dayton. A lot of those problems could be changed as part of the marsh funding. The original natural movement of water from the marsh was along Dayton to the where the fishing pier is located and there is a natural tendency for water to follow that channel. That water needs to be diverted and pumped but she was looking for ways to make the budget more reflective of the times, trying to be nimble and accomplish all the goals which she recognized is a balancing act. Because there are three other funding sources, she was willing to take the risk and postpone this decision package for another year. Councilmember Tibbott said he had been hearing about this project for 2-3 years, and staff has been applying for FEMA funds. Recognizing there is momentum toward completing this project, he asked the implication of waiting a year. Mr. Williams said he had not done an exhaustive analysis, but this is an ongoing capital project, a great deal of money has been spent to reach 60% design, three-quarters of the Edmonds City Council Approved Minutes December 11, 2018 Page 16 funds have been obtained and 3 ideas for obtaining the rest as well as a backup plan. He was puzzled why the Council would not move forward with this project as it addresses an ongoing, serious problem; its interrelationship with the marsh cannot be ignored and the two projects are very compatible. He agreed with using FEMA funds if they were provided within a reasonable timeframe in 2019 but supported pursuing funding from the legislature. If both of those sources are unsuccessful, this is a legitimate use of stormwater rate revenues. Council President Nelson observed Dayton Street currently floods every year during storm surges. Mr. Williams said it has flooded 3-4 times since he has been employed by the City. Council President Nelson said the purpose of the pump station is to alleviate flooding. Mr. Williams answered yes. Council President Nelson expressed support for retaining DP #25 in the budget. UPON ROLL CALL, MOTION FAILED (2-5), COUNCILMEMBERS BUCKSHNIS AND JOHNSON VOTING YES. Mr. James displayed Staff's Recommended Proposed Budget Book Changes and requested Council action: STAFF'S RECOMMENDED PROPOSED BUDGET BOOK CHANGES Item # Budget Book Pa e # Description Cash Increase Decrease GENERAL FUND 1 43 CitX Clerk Benefits Understated 15,125) 2 20 Culture & Recreation — Program Revenue ($45,000 3 57 SnoCo DEM Former ESCA /SERB $5,245) 4 57 SnoCo 911 former SNOCOM Merger Savings $169,180 5 DP 95 Reduce Contribution to Sno Health District to $1/capita $42,000 Impacts to General Fund Ending Cash 145,810 Fund 017 Marsh Restoration and Preservation 6 124 Add Donation Revenues $6,800 Impacts to Fund 017 Ending Cash $6,800 Fund 112 Street Construction 7 DP 97 Correct pavement preservation expense for General Fund Transfer by increasing Fund 112 expense ($500,000) Impacts to Fund 112 Ending Cash $500,000) EDMONDS HOMELESSNESS RESPONSE FUND 018 8 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 8 167 Move $250,000 Transitional Housing bud et from Fund 018 $250,000 9 DP#126 Add budget to DP#126 for Waterfront Center Project $200,000 Impacts to Fund 125 Ending Cash $450,000 REET 1 FUND 126 9 DP#126 Add bud et to DP#126 for Waterfront Center Project $483,868) Impacts to Fund 126 Ending Cash $483,868 Total Staff Recommended Changes $1,031,258 Councilmember Johnson asked about Item 6. Mr. James said that represents $6,800 in citizens donations to the Marsh Restoration Fund. COUNCILMEMBER FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER TEITZEL TO APPROVE STAFF'S RECOMMENDED PROPOSED BUDGET BOOK CHANGES 1-9. MOTION CARRIED UNANIMOUSLY. Edmonds City Council Approved Minutes December 11, 2018 Page 17 Councilmember Johnson referred to Item 5 in Staffs Recommended Proposed Budget Book Changes, recalling the $1/capita had been reduced to $0.50/capita. Mr. James said there were two amendments to the contribution to the Health District. Staff recommended reducing it from $2/capita to $1/capita and Councilmember Fraley-Monillas later made a motion to reduce it to $0.50/capita which the Council approved. The budget currently includes $0.50/capita. Mr. James requested the Council identify the funding source for the marsh restoration and accessible playground equipment upgrades in the amount of $200,000. Councilmember Mesaros asked whether accessible playground equipment could be funded with BEET. Ms. Hite answered it was an appropriate source, but she questioned whether there was enough ending balance. Mr. James displayed the two REET funds, advising there was $869,000 in REET 2 Fund 125 which was impacted by the reduction to the gateway sign, transitional housing, and funding for Waterfront redevelopment and the marsh that reduced the balance to $370,000. The budget book shows REET 1 Fund 126 has $881,000 which amendments reduced to $392,674. There is some fund balance remaining, but the levels are precariously low. He recalled budget amendments in the past for REET, and this low level removes flexibility for unforeseen things. Councilmember Mesaros observed REET funds would increase in 2019 as real estate is bought and sold. Ms. Hite advised the balances of $392,000 and $370,000 take into consideration revenue projections for REET in 2019. COUNCILMEMBER MESAROS MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO FUND ACCESSIBLE PLAYGROUND EQUIPMENT WITH $100,000 FROM EACH REET I AND REET 2. Councilmember Tibbott relayed his understanding it may be possible to spend $70,000 on the accessible portion of the Seaview equipment replacement and the remaining $130,000 could be used in another park in another year. Ms. Hite agreed. Councilmember Tibbott said the $200,000 would not be spent until staff brings forward a budget request. Ms. Hite anticipated going out to bid on the Seaview playground early in the year so it can be installed before summer. It will be bid as an ADA and inclusive playground, the poured - in -place rubber surface and specific components. She anticipated that would add $100,0004150,000 to that playground project. The award of bid will be brought to Council and if funds remain, consideration could be given to improving other playgrounds or save it for Civic in 2020. Councilmember Tibbott asked if it would make sense to look at places in the City where this kind of accessible park could be most successful accessed, recalling the Seaview playground is difficult to reach from the parking lot. He anticipated there may be better parks for a full application of this material but he was sympathetic to the idea there may be some equipment or padding that could make one portion of the playground especially useful. Ms. Hite said consideration will be given to ways to make the playground inclusive, but not go overboard on the expenditure. She agreed the grade to reach the Seaview playground is not accessible and consideration is being given to changing the location of the playground in the park. Councilmember Tibbott summarized if $200,000 is set aside for inclusive playground equipment, it could be spent over several year or applied to Civic Field. Ms. Hite agreed. Councilmember Fraley-Monillas said she hoped all the City's parks could be inclusive and not exclusive. Ms. Hite agreed, noting they are all ADA accessible now. Councilmember Fraley-Monillas asked Ms. Hite for a recommendation on a funding source and whether she was comfortable with the funds coming from Funds 125 and 126. Ms. Hite answered she was a little uncomfortable taking the balances so low because the Waterfront Redevelopment project is coming up this year and the cost estimates are from a 30% design, not a complete build or construction cost estimate. Often in big projects when the full cost estimate and Edmonds City Council Approved Minutes December 11, 2018 Page 18 engineering estimate is done, bids are higher which could stop that project if there is not enough wiggle room in the REET fund balance. She would rest easier if there was $500,000 in each of those accounts and not just for park projects, but also for Public Works projects, recalling change orders to allocate additional funds for projects after work begins. Having some wiggle room in the REET funds would be ideal. That said, sometimes projects do not go forward and there is some cash flow in the REET funds. Councilmember Fraley-Monillas asked if there was another other funding source. Ms. Hite deferred to Mr. James, noting there was no other funding source in Parks & Recreation. Councilmember Buckshnis agreed with Councilmember Tibbott there was a steep grade to reach the Seaview playground. She observed there was $1.6M in revenue in both REET accounts and asked what the ending cash balance would be. Mr. James answered with the amendments approved by Council, REET 126 would have $392,000 and REET 125 would have $370,000. The estimate for REET revenues in 2018 is $1,750,000 which is projected to decline to $1,540,000 in 2019. Councilmember Buckshnis anticipated the $1,750,000 estimate for 2018 may be low based on October revenues. Councilmember Mesaros observed the potential amendments for both REET funds included $75,000 for additional contribution to the marsh, but the Council has yet to determine the source of those funds. Mr. James agreed. MOTION CARRIED UNANIMOUSLY. Mr. James requested Council identify a funding source for $300,000 for marsh restoration; he did not have a funding recommendation. Mayor Earling said he would leave it in Council's hands after making his statement. Councilmember Buckshnis said sales tax revenue in 2018 is $791,000 higher than 2017 and although the under -usage of the budget is unknown at this point, there was no reason the money could not be taken from ending cash balance. Councilmember Tibbott referred to Staff's Marsh Funding Plan Recommendation and suggested removing the following: 4. Use General Fund $'s to include Council Amendment #2 - $93,740 $100,000 5. REET 2 Fund 125 Ending Fund Balance $75,000 6. REET 1 Fund 126 Ending Fund Balance $75,000 COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO PULL $550,000 FROM ENDING CASH BALANCE OR UNDER USAGE OF THE GENERAL FUND AT YEAR END AND REMOVE ITEM 1, 4, 5, AND 6 FROM THE LIST OF STAFF'S MARSH FUNDING PLAN RECOMMENDATION. With regard to unexpended budget and fund balance, Mr. James referred to the Strategic Outlook 2016- 2023 on budget book pages 12 and 13. He tried to take a conservative approach when this was developed; it does not take into account the impending recession and does not include any new sources of revenues. He referred to Anticipated Under -Expenditure in the outlook which is the equivalent of 3%. Adding that every year, the General Fund is in the red $1.3M in 2023. The General Fund is an operating fund, not a capital fund because it does not produced dollars to sustain the level of capital spending. Councilmember Buckshnis asked why $2M was taken from the General Fund last year for Civic Field if the General Fund is an operating fund. Mr. James said there were excess funds in the General Fund, that $2M is part of this figure. Councilmember Buckshnis said page 13 (General Fund Balance 2016-2023) does not include current revenues so it is a distorted General Fund balance. She summarized $2M was set aside Edmonds City Council Approved Minutes December 11, 2018 Page 19 last year for Civic Field, all she was asking for this year was $550,000 for the marsh restoration and daylighting of Willow Creek. Councilmember Fraley-Monillas asked much was unencumbered in reserves in the General Fund. Mr. James referred to the Strategic Plan on page 13 of the budget book that projects $8.5M in the General Fund. Councilmember Fraley-Monillas said if the money could not be taken from other funds, reserves was the only fund that had that level of funding available and reserves are meant for one-time expenditures, not ongoing expenditures. For Mr. James, Councilmember Mesaros clarified Councilmember Buckshnis' proposal, to take $550,000 from the General Fund and use the remaining $450,000 from Items 2 (Cut 126 Land Acquisition DP # 125 - $200,000) and 3 (Use Stormwater Funds - $250,000). Councilmember Buckshnis agreed. In terms of prudent budgeting, Councilmember Teitzel expressed concern with drawing down fund balance particularly when a downturn is coming, maybe not next year but in the foreseeable future. He recalled Councilmember Buckshnis mentioned twice last week that the Council has heard nothing about the opioid task force; the Council put $250,000 in an Opioid Response Fund in 2018 and he was unclear how that was being used, as far as he knew, nothing had been spent. The City has been providing funding to Snohomish Health District and one of their primary priority priorities is opioid abuse. The City is using Edmonds' taxpayers' money to fund the Health District and getting direct benefit from their work on that crisis. He suggested using $200,000 from the Opioid Response Fund and reduce the use of the General Fund from $550,000 to $350,000. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO AMEND THE MOTION TO REDUCE THE $550,000 FROM THE GENERAL FUND TO $350,000 BY CONTRIBUTING $200,000 FROM THE OPIOID RESPONSE FUND. Councilmember Fraley-Monillas said none of the funds budgeted for the Opioid Response Fund has been spent; the task force is awaiting information from Snohomish County regarding the opioid crisis and how it affects Edmonds. If the Council wanted to spend that money, she will propose a mid -year budget amendment if the funds are needed for the response to the opioid crisis. Councilmember Buckshnis agreed with Councilmember Teitzel, relayed there will be an opioid presentation to the Council in February that will identify necessary funding. She supported the amendment. Councilmember Johnson opposed the amendment. As a member of the Opioid Task Force, she agreed they have not done a good job keeping the Council informed but are moving forward with identifying ways to spend the funds in 2019 and she would like that flexibility. UPON ROLL CALL, MOTION CARRIED (5-2), COUNCILMEMBERS FRALEY-MONILLAS, BUCKSHNIS, MESAROS, TEITZEL AND TIBBOTT VOTING YES; AND COUNCIL PRESIDENT NELSON AND COUNCILMEMBER JOHNSON VOTING NO. Mr. Taraday clarified his understanding of the main motion, there will be $1.3M in the Marsh Restoration Funds; the sources are the current $300,000 ending fund balance, Item 2 (Cut 126 Land Acquisition DP # 125 - $200,000) and Item 3 (Use Stormwater Funds - $250,000), $350,000 from General Fund ending fund balance and $200,000 from the Opioid Response Fund. Mr. James pointed out the stormwater funds are restricted so they will be reserved in the Stormwater Fund and not be transferred into the Marsh Restoration Fund and the same will be done for REET funds. As a rule, restricted funds must be expended first. Edmonds City Council Approved Minutes December 11, 2018 Page 20 MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY. COUNCILMEMBER MESAROS MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE ORDINANCE NO. 4136, ADOPTING THE 2019 BUDGET AS AMENDED TO COMMENCE JANUARY 1, 2019. MOTION CARRIED UNANIMOUSLY. Mayor Earling declared a brief recess. 3. APPROVE THE 2019-2024 CAPITAL FACILITIES PLAN/CAPITAL IMPROVEMENT PROGRAM Parks & Recreation Director Carrie Hite said staff did to have a presentation. The intent was to put this on the Consent Agenda, but staff learned the Council wanted to have further discussion. There have been two public meetings/open house; staff is present to answer Council questions. Councilmember Buckshnis relayed the CIP/CFP was updated to reflect the Edmonds Marsh restoration to include adding Edmonds Marsh restoration in regional parks and a footnote in the stormwater section. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO APPROVE THE 2019-2024 CAPITAL FACILITIES PLAN/CAPITAL IMPROVEMENT PROGRAM. Councilmember Teitzel referred to Edmonds Crossing/WSDOT Ferry/Multimodal Facility on page 5 of the CFP, expressing concern with including this project in the CIP/CFP when he has heard Ferries does not plan to move the terminal. This causes consternation/confusion, especially when there are discussions about potentially purchasing some or all of the property. He suggested removing that project from the CFP, commenting it could be added back in the future if necessary. Mr. Williams said he was not necessarily against removing the project from the CFP, commenting it has been an evolving issue; the City has been hesitant to remove Edmonds Crossing from the Comprehensive Plan and CIP/CFP and Ferries was hesitant to remove it because $8M in federal funds went into developing that project and another $8M in WSDOT funds was spent to purchase the property, a total of $16M. There has been concern for several years that federal sources could ask that those funds be repaid if the two agencies decided not to pursue the project. The City worked with Ferries to remove specific references to the project in their long-range plan but Ferries has not said the project absolutely will not be the future answer. It is still in the City's Comprehensive Plan and CFP. He was uncertain what the impact of a successful motion to remove the project from the CFP would be. Councilmember Fraley-Monillas recalled an article in the Herald or the Seattle Times that WSDOT and Ferries kept Edmonds Crossing in their plans because it was still a goal and active project they were seeking funds for, but moved it out 10 years to 2035. Mr. Williams said there are no funds programmed in Ferries' long range plan through 2040; that plan will be updated in another five years. The specific Edmonds Crossing project is not currently included in their plan; the plan states Ferries will work with the local community on a long-term plan. The project is included in the City's CFP, but no funds or work have been invested and the City has encouraged WSDOT to take it out of their plans as a specifically recommended project. He did not think it would be harmful to keep the project in the Comprehensive Plan and CFP until Ferries removes it. Councilmember Teitzel said it could be added back to the CFP if Ferries was serious about moving the terminal in the future. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO REMOVE EDMONDS CROSSING FROM PAGE 5 OF THE CAPITAL FACILITIES PLAN. Edmonds City Council Approved Minutes December 11, 2018 Page 21 Councilmember Fraley-Monillas asked if there was any complication with removing that project from the CFP, noting it had been in the CFP for a long time which she compared to the aquatic center that was eventually removed. Mr. Williams said a potential reaction could be a request to repay the funds received which has happened in other places. If Edmonds Crossing is not the future for Ferries, projected growth would mean modifications to the existing ferry dock, parking, three boat operation, possibly reservations and additional construction. Ferries' long-range plan states they will try to work with the local community on a plan. Councilmember Johnson opined this motion is premature for several reasons, 1) the Ferries plan is a draft, not a final, 2) the Edmonds Crossing is included in the Comprehensive Plan, and 3) the CIP/CFP is supposed to support the Comprehensive Plan so removing it would make them out of sync and inconsistent. She was okay with leaving Edmonds Crossing in the CFP even if it is a little confusing because she viewed it as a placeholder. It is different than other projects that were removed like the idea for a museum when Cascadia Museum was opened. She appreciated that it was a little confusing but it was needed for the coordination of federal, state and local planning related to the ferry. Council President Nelson asked what potentially could have to be paid back. Mr. Williams said most recently in New York $15-20M was invested in a project, that project was later abandoned and a different project pursued and New York was asked to pay back the funds. Council President Nelson asked what Edmonds could be asked to repay. Mr. Williams said $8M in federal transportation funds were invested in the project. Council President Nelson said if the project remains in the CFP, the City does not have to repay any of the funds right now. Mr. Williams agreed, no one has asked for repayment. Council President Nelson said if the project is removed from the CFP, there is a possibility $8M would need to be repaid. Mr. Williams said he could not say how realistic that was, but he could not say it was not a possibility, so yes. Council President Nelson preferred to keep Edmonds Crossing in the CFP. Mayor Earling said without some kind of notice to the state, it would be premature to take this action and he encouraged the Council to leave the project in the CFP. AMENDMENT FAILED (1-6), COUNCILMEMBER TEITZEL VOTING YES. Due to the number of changes were made to the budget tonight, Ms. Hite requested an opportunity to update the CIP and CFP to reflect those changes such as $1M for Edmonds Marsh and $200,000 for accessible playground improvements. She suggested the motion to adopt the CIP include "as updated from the budget amendment adopted tonight." City Attorney Jeff Taraday said two separate motions are required because the CFP is adopted by ordinance and the CIP is adopted by motion and both need to be adopted tonight. COUNCILMEMBER BUCKSHNIS MOVED SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO ADOPT ORDINANCE NO. 4137, THE CAPITAL FACILITIES PLAN WITH THE CHANGES MADE VIA BUDGET AMENDMENTS TONIGHT. MOTION CARRIED UNANIMOUSLY. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO APPROVE THE CAPITAL IMPROVEMENT PROGRAM WITH THE BUDGET AMENDMENTS MADE TONIGHT. MOTION CARRIED UNANIMOUSLY. COUNCILMEMBER MESAROS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO EXTEND THE MEETING FOR 30 MINUTES. MOTION CARRIED UNANIMOUSLY. 4. FOURTH QUARTER 2018 BUDGET AMENDMENT Edmonds City Council Approved Minutes December 11, 2018 Page 22 Finance Director Scott James reviewed: * 11 new amendments for Council to consider • 11 Decision Packages Total $217,280 in new revenues and $761,265 in new expenditures o Of these 2 are "100% Self-funded" o The remaining 9 use ending fund balance • At the suggestion of the Finance Committee, budget amendment descriptions updated with the funding source * Amendment Decision Packages o Police reimbursable overtime— 100% self-funded o Police Department overtime due to retirements, terminations — $100,200 General Fund ending fund balance o Equipment funded by Edmonds Police Foundation —100% self-funded o LEOFF 1 long-term care funding — $64,000 from LEOFF Fund 009 ending fund balance 0 I% for the Arts (2018 Sewer Rpl. Phase 6) — $423 o Youth scholarships — $1,200 from Fund 122 ending fund balance o Trackside Warning system — $88,569 REET 1 Fund 126 ending fund balance o Dayton 3rd to 91h Utility Replacement - $75,000 from 3 utility funds o Homeless Response Consultant — a $25,000 from Homelessness Response ending fund balance 0 76th -220th Intersection Pre -design Study — $55,000 from Traffic Impact Fees o Amendment removed: 76th & 212th Intersection Improvements — program transportation impact fees and stormwater funds to pay for project costs not reimbursed by federal grant o Replacement amendment: 76' Ave & 212th Intersection Improvements — reduce Street Construction Fund expenditure from $125,000 to $80,000 and move stormwater expenses to sewer fund For Councilmember Johnson, Mr. James provided further details regarding the amendment that was removed and the replacement amendment. He summarized the 4th Quarter Budget Amendment: • Expenditures are Increased by $761,265 • Revenues are Increased by $217,280 • Council Questions or Comments COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO APPROVE THE FOURTH QUARTER BUDGET AMENDMENT AS PRESENTED AT THE CITY COUNCIL MEETING ON DECEMBER 11, 2018, ORDINANCE NO. 4138. MOTION CARRIED UNANIMOUSLY. 5. EMPLOYEE CONTRACT RENEWALS Council President Nelson explained two Council employee contracts that are up for renewal. The first is a 2 -year contract with the Council Audio Video Recorder that expires at the end 2018, currently at $33/hour and the second is the Council Legislative Assistant that expires January 22, 2019 currently at $32/hour. With regard to the contract for the Audio Video Recorder, his discussions with HR Director Mary Ann Hardie indicate there are no comparators and he suggested extending the contract for two months to research rates paid by other cities in the region. COUNCIL PRESIDENT NELSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO EXTEND THE VIDEO RECORDER CONTRACT FOR TWO MONTHS AT THE CURRENT RATE. Councilmember Johnson commented this a very unique position and the last time the rate was increased was when she was the Council President. She felt it was important to continue this position and doubted Edmonds City Council Approved Minutes December 11, 2018 Page 23 comparators could be found. She suggested an annual cost of living increase for the position and a one-time increase to reflect that it had been three years since the last increase. Councilmember Tibbott said it could be beneficial to extend the contract to consider options and to allow the contracts for the Video Recorder and the Legislative Assistant to be approved at the same time. Council President Nelson questioned whether the research of comparators could be completed by the time the Legislative Assistant contract expired; there were comparators available for the Legislative Assistant position. He clarified his motion was for a two-month extension of the Audio Video Recorder contract. He recommended taking action on the Legislative Assistant contract next year. Councilmember Mesaros said if the information regarding comparators for the Video Recorder position is received sooner than two months, the Council could take action on that contract, possibly at the same time as the renewal of the Legislative Assistant contract. MOTION CARRIED UNANIMOUSLY. 6. RESOLUTION RE: COMPREHENSIVE PLAN AND HOUSING STRATEGY Council President Nelson read the resolution title, A Resolution of the City Council of the City of Edmonds, Washington, Docketing Two Proposed Amendments to the Housing Element of the City of Edmonds Comprehensive Plan for Consideration and Action in 2019. He explained there are four options: 1) do nothing, 2) support one amendment, 3) support the other amendment, or 4) support the resolution as adopted (consider both amendments in 2019). COUNCIL PRESIDENT NELSON MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO APPROVE RESOLUTION 1420, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DOCKETING TWO PROPOSED AMENDMENTS TO THE HOUSING ELEMENT OF THE CITY OF EDMONDS COMPREHENSIVE PLAN FOR CONSIDERATION AND ACTION IN 2019 AS CURRENTLY DRAFTED. For Councilmember Buckshnis, City Attorney Jeff Taraday clarified the resolution simply dockets both options. MOTION CARRIED UNANIMOUSLY. 7. SELECTION OF COUNCIL PRESIDENT FOR 2019 Mayor Earling described the process, Councilmembers make nominations, nominations do not need a second. The nominee that receives the most votes is selected. COUNCILMEMBER TEITZEL NOMINATED COUNCILMEMBER MESAROS FOR COUNCIL PRESIDENT IN 2019. COUNCILMEMBER BUCKSHNIS NOMINATED COUNCILMEMBER FRALEY-MONILLAS FOR COUNCIL PRESIDENT IN 2019. There were no further nominations. COUNCILMEMBERS MESAROS, TIBBOTT AND TEITZEL VOTED IN FAVOR OF COUNCILMEMBER MESAROS; AND COUNCIL PRESIDENT NELSON AND COUNCILMEMBERS JOHNSON, BUCKSHNIS AND FRALEY-MONILLAS VOTED IN FAVOR OF COUNCILMEMBER FRALEY-MONILLAS. Edmonds City Council Approved Minutes December 11, 2018 Page 24 Councilmember Fraley-Monillas was selected as Council President for 2019. 8. SELECTION OF COUNCIL PRESIDENT PRO TEM FOR 2019 COUNCILMEMBER TEITZEL NOMINATED COUNCILMEMBER TIBBOTT AS COUNCIL PRESIDENT PRO TEM IN 2019. COUNCILMEMBER JOHNSON NOMINATED COUNCILMEMBER BUCKSHNIS AS COUNCIL PRESIDENT PRO TEM IN 2019. There were no further nominations. COUNCILMEMBERS MESAROS, TEITZEL AND TIBBOTT VOTED IN FAVOR OF COUNCILMEMBER TIBBOTT; AND COUNCIL PRESIDENT NELSON AND COUNCILMEMBERS BUCKSHNIS, JOHNSON AND FRALEY-MONILLAS VOTED IN FAVOR OF COUNCILMEMBER BUCKSHNIS. Councilmember Buckshnis was selected as Council President Pro Tem in 2019. MAYOR'S COMMENTS Mayor Earling relayed Mr. Williams, Mr. Doherty and he had a very good trip to Washington, D.C., and he thanked Mr. Williams and Mr. Doherty for their work. The federal lobbyist will provide the Council a report within the next 7-10 days summarizing the 7-8 meetings they held. The federal lobbyist will also provide the Council a report every 60 days. While in Washington, D.C. they highlighted the three projects, Highway 99, Edmonds Marsh and the Waterfront Connector, and received interest, feedback and questions. 8. COUNCIL COMMENTS Councilmember Buckshnis referred to the cards being distributed to solicit donations to the Edmonds Marsh Restoration Fund, Fund 017 that was established last year to allow citizens to make tax deductible donations; $6,840 was collected during 2018. Now that the City has allocated $1.3M she anticipated citizens would begin to make donations. She planned to make a donation before yearend. Photographs of the marsh can be seen at #EdmondsMarshMadness. She wished everyone happy holidays, stay safe, stay happy and love Edmonds. Councilmember Tibbott wished everyone a happy holidays, noting it had been quite a year. He thanked Councilmembers for making it an interesting year and he looked forward to a great 2019. Councilmember Johnson recalled Mike Bailey saying that budgeting was a team sport. With each budget, there are new lessons to learn and she suggested having a debrief in 2019 on the budget process and what the Administration and City Council could do to make future budget processes even better. She wished everyone a happy holiday season and thanked the public for their contributions to the Edmonds Marsh, a wonderful project that the City will embark on as soon as possible. Council President Nelson said it has been an honor and pleasure to be the Council President in 2018; he learned a lot in that role. Councilmembers demanded a lot; sometimes he delivered and sometimes he did not. He wished everyone a wonderful and happy holidays and looked forward to the new year. Councilmember Mesaros announced the Public Facilities District (PFD) made their first payment of $50,000 to the City last Wednesday to begin repaying their loan. He was glad that with the PFD refinancing their bond and the collateral the City provided via a CD, the PFD's cash flow was improved enough that Edmonds City Council Approved Minutes December 11, 2018 Page 25 they could begin repaying the City which they plan to continue on a regular basis. He reported on the PFD/ECA Board retreat on Saturday, December 8; their Strategic Plan anticipates repaying the City in full by 2027 at the latest and maybe earlier. Councilmember Teitzel said he was reminded of the saying, doing budget work is like making sausage, it's not pretty to watch but the end result tastes pretty good. He was thankful for Councilmembers' efforts to reach this point in the budget. He thanked the Council for a great year, wished everyone happy holidays and a great time with their loved ones. Councilmember Fraley-Monillas reminded Council President Nelson he was still the Council President until she is sworn in. She requested Councilmembers submit their first and second choice for Council committees and other committee assignments. She thanked Council President Nelson and Council President Pro Tem Buckshnis for their work this year, noting it was great ride, with the occasional bump. She wished everyone a happy holiday and a joyful new year. 9. CONVENE IN EXECUTIVE SESSION REGARDING PENDING OR POTENTIAL LITIGATION PER RCW 42.30.110(i)fi? This item was not needed. 10. RECONVENE IN OPEN SESSION. POTENTIAL ACTION AS A RESULT OF MEETING IN EXECUTIVE SESSION This item was not needed. 11. ADJOURN With no further business, the Council meeting was adjourned at 10:30 p.m. DAVID 0. EARLING, MAYOR S PASSEY, CITY-eRK Edmonds City Council Approved Minutes December 11, 2018 Page 26