20190604 City Council Special MeetingEDMONDS CITY COUNCIL SPECIAL MEETING
APPROVED MINUTES
June 4, 2019
ELECTED OFFICIALS PRESENT
Dave Earling, Mayor
Adrienne Fraley-Monillas, Council President
Michael Nelson, Councilmember
Kristiana Johnson, Councilmember
Diane Buckshnis, Councilmember
Dave Teitzel, Councilmember
Neil Tibbott, Councilmember
ELECTED OFFICIALS ABSENT
Thomas Mesaros, Councilmember
CALL TO ORDER
STAFF PRESENT
Carrie Hite, Parks, Rec. & Cult. Serv. Dir.
Shannon Burley, Deputy Parks Director
Scott James, Finance Director
Tom Brubaker, City Attorney's Office
Scott Passey, City Clerk
Jerrie Bevington, Camera Operator
Jeannie Dines, Recorder
The Edmonds City Council meeting was called to order at 6:00 p.m. by Mayor Earling in the Council
Chambers, 250 5`h Avenue North, Edmonds.
2. STUDY ITEM
CIVIC PARK FINANCING
Parks & Recreation Director Carrie Hite reported staff has been working on fund development and design
as well as involving citizens and stakeholder groups and are targeting next year for groundbreaking. This
is an opportunity to update the Council on the design, identify some options, describe a community effort
that has begun as well as the budget and financing, grants received, revenues and expenses, the gap and
options to fund gap and to respond to Council questions. She introduced Deputy Director Shannon Burley,
Finance Director Scott James, and Scott Bauer, the City's financial advisor. She presented:
History
o Project has been in Comprehensive Plan since 1976 when the City first leased the field from
Edmonds School District to operate as park.
o Acquisition in 2015, early 2016
o Published RFQ for Civic Park Master Plan and Development
o Council awarded contract to Walker Macy in May 2016
o Robust public process; Council adopted Master Plan in March 2017
o Acquisition
■ Recreation Conservation Office; $1,000,000
• Snohomish Conservation Futures: $500,000
■ City of Edmonds: $400,000
• Total purchase price: $1,900,000
o City contracted with Walker Macy to complete site survey and geotech work in 2017
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o City demolished stadium in 2017
■ Most of the wood could not be saved due to termite infestation
■ Saved wood will be repurposed on site to recognize the stadium's historic significance
o Council adopted CIP and budget for Civic, allocating design funds in 2018/2019
o City staff continued fund development in 2017 and 2018
o Continued design development with Walker Macy and key stakeholder groups in 2018 and
2019 (P6tanque Club, Boys & Girls Club, Skatepark Group)
o Presented design update to Council in April 2019
■ Project is currently at 30% design, still resolving stormwater issues on site
• Schematic design — adopted in September 2018
o Stormwater
■ High water table on site
■ Presence of peat
■ Impervious surfaces require onsite infiltration
— Explored several options including direct discharge to Puget Sound (not feasible)
— Most recent option is partial dispersion of stormwater above Civic Park in same
watershed — Yost Park.
— Also considering raising the grade for underground filtration tanks
— Budget includes $700,000 for stormwater, may be possible to reduce via a hybrid
method of treating stormwater
o Play Area
■ Good connections and visibility to playing fields, per community request
■ Will include accessible and nature inspired features
■ Encourages exploration and accommodates a range of ages and places for parents to sit
— A local family and the Rotary Club are teaming up to raise funds for the play area
— Rotary launched campaign last week
— Budget includes $110,0004120,000 for play area
— Cost of the inclusive playground is $500,000-$600,000
• May rethink the interactive water play area
• Photographs of sample features
— Slides built into grade
— Accessibility options
— Nature inspired features — logs, native grasses
— Spinner
— Climber
— Sensory play
— Features of an inclusive playground in Portland
• Boys & Girls Club
o Current park design assumes existing building and its surrounding conditions remain as is
o Dashed line shows potential future footprint of new building, approximately 12,000 square feet
o B&G Club is also considering another site
o Walker Macy is designing the park aground footprint
o If B&G Club decides in the next 6 months they do not want to build, there is time to redesign
• Skatepark
o The design has been advanced and the focus is on above ground features, due to ground water
constraints. The skatepark includes features requested by local skating community, and is well -
integrated into the park.
o Drawing of concept with berm and planning, park connection, range of skate features and
viewing terraces
• P6tanque Grove
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o Petanyue grove has been designed to be more flexible in order to accommodate tournaments
and other events
o Goal is to provide a beautiful park entrance and a flexible, multi -use area
o Six formal courts and ability to lay out flexible tournament courts
■ Public Process
o Schematic Design:
• Project Advisory Committee
• Petanyue club: 2 meetings
• Skatepark community: 2 meetings
• Chamber of Commerce
■ Boys & Girls Club
■ Parks, Engineering, Public Works, Planning meetings
■ Arts Commission
■ City Council
■ Playground stakeholder group
• Civic Park Pra used Budget
Projected Expenses $11,885,400
Projected Revenues $8,830,000
Gap @ 30% design $3,055,400
• Civic Park Budget Assumptions
REVENUE
2018 2019
2020
Total
A&E 430,000
$750,000.00
$205,000.00
$955,000.00
Fund 125
$430,000 $70,000.00
$500,000.00
$570,000.00
Fund 126
$750,000.00
$500,000.00
$1,250,000.00
City GF
$2,000,000.00
$500,000.00
$2,500,000.00
Park Impact Fees
$500,000.00
$500,000.00
$1,000,000.00
RCO/Local Parks/YAF
$850,000.00
$850,000.00
LWCF/State
$780,000.00
$500,000.00
$500,000.00
Snohomish County
$450,000.00
$450,000.00
Hazel Miller Foundation
$1,500,000.00
$1,500,000.00
ADA Playground Upgrades
$110-10- 0- 0.00
$110,000.00
Verdant/Fitness Zone
$100,000.00
$100,000.00
TOTAL
$430,000 1 $3,430,000.00
$5,400,000.00 1
$8,830,000.00
EXPENSES
2019
2020
Total
A&E 430,000
$750,000.00
$205,000.00
$955,000.00
Permitting
$0.00
Construction
$6,800,000.00
$6,800,000.00
GC's, escalation, contin encu
$2,380,000.00
$2,380,000.00
Const. su ort/testin misc/En ineerin
$30,000.00
$1,020,000.00
$1,050,000.00
WSST
$700,400.00
$700,400.00
TOTAL 430,000
$780,000.00
$11,105,400.00
$11,885,400.00
o Gap in funding at 30% design $3,055,400.00
o Assumptions:
— 2020 CIP budget includes additional REET and PIF
— 2020 General Fund $500,000
— LWCF Funded at $500,000
■ Funding the Gap - Options
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June 4, 2019
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1. Capital Development
2. Gift Catalogue, stakeholder efforts
3. Councilmatic Bonds
4. Voted Bonds
Option 1 Capital Development
o Hire a firm to assist with capital development.
0 i.e. Campbell and Company:
o $300,000 to raise $3,500,000
Option 2 Gift Catalogue, Stakeholder efforts
o Gift Catalogue: Donor elements could include skatepark, pickleball courts, petanque grove,
picnic tables, pavers in the entry plaza, benches.
o Stakeholder efforts: Playground as an example.
Option 3 & 4 Bonding
o Councilmatic Bonds
o Voted Bonds
Finance Director Scott James reviewed Civic Field Funding
• 12/21/19 Outstanding Governmental Debt
Issue Name
Maturity
Date
Interest
Rates
Original
Amount
Balance
12/31/19
General Obli ation Bonds:
2012 LTGO Refunding Bonds
12/1/2031 1
2.00%
a. Refunded 1993 Issue - Public Works
Building
194,407
97,306
b. Refunded 1993 Issue - City Hall
c. 2001 LTGO Issue - Series A -
Improvements: Library, Francis
Anderson Center, Streets
539,819
1,349,817
270,195
675,622
d. 2001 LTGO Issue - Series B - Marina
Beach
1,270,000
635,672
e. 2002 LTGO Issue - Performing Arts Center
5.650,000
2.,827,988
Total General Obligation Bonds
9,004,043
4,506,783
2016 Chase Bank Loan
12/1/2026
1.67%
a. HVAC Project 2006
401,593
288,956
b. Anderson Center Seismic 2007
247,134
177,819
c. Energy Conservation 2007
189,799
136,565
Total Chase Bank Loan
838.526
603.341
Public Works Trust Fund Loans
a. 2003 Street Construction Loan
6/30/2022
0.50%
340,000
54,430
b. 2004 Street Construction Loan
6/30/2024
0.50%
400,000
105,882
c. 2006 Street Construction Loan
5/24/2026
0.50%
624,750
230.171
Total Public Works Trust Fund Loans
1.364.750
3 4
S 112M19
S5-500AU
• Graph of Outstanding Debt
o 2019-2030
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• Graph of Debt Service Requirements Governmental Debt 2019-2031
o SERS loan retired 12/1/19
0 2012 LTGO retired 12/1/21
o PFD Bond retired 12/1/26
• Graph of Debt Service Requirements before Civic Bond Issue and with Civic Bond Issue
• Civic Field Bond Funding Options
• Graph of Outstanding Governmental Debt
• Estimated debt service for a $3.5 M bond
Ms. Hite reviewed the timeline:
• 2018: Design development, public process, fund development.
• 2019: Construction documents, permitting, bidding, fund development.
• 2020: Construction
• Phase 2: ROW improvements on 6th Avenue - TBD
Ms. Hite relayed she has discussed parking with the church across the street from Civic; they are open and
willing to discuss a proposal/plan to coordinate parking for Civic Park at the church.
Council President Fraley-Monillas asked the cost of bond debt. Mr. Bauer estimated issuance costs of
approximately 1.5% or $90,000 for a $3M bond issue. Council President Fraley-Monillas asked the cost of
debt service throughout the life of loan. Mr. Bauer said it is approximately $250,000. Council President
Fraley-Monillas observed that was approximately the same as hiring a firm to raise the money which was
estimated at $300,000. Ms. Hite answered the cost is $248,000 per year for 20 years. If the City hired
someone for $300,000, it is a onetime expenditure to raise the $3M. Council President Fraley-Monillas
asked the cost if more than $3.5M needed to be raised. Ms. Hite estimated the cost to raise $3.8-$4M would
still be $300,000.
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LTGO (Non -Voted Bonds)
$3.5 Million Proceeds
Dec 1
Debt Service
2020
$248,469
2021
$249,469
2022
$245,269
2023
$246,069
2024
$245,569
2025
$244,819
2026
$248,819
2027
$247,319
2028
$245,569
2029
$248,569
2030
$246,069
2031
$248,319
2032
$245,069
2033
$246,569
2034
$244,369
2035
$246,506
2036
$247,975
2037
$248,750
2038
$248,000
2039
$246,750
$4,938,313
Ms. Hite reviewed the timeline:
• 2018: Design development, public process, fund development.
• 2019: Construction documents, permitting, bidding, fund development.
• 2020: Construction
• Phase 2: ROW improvements on 6th Avenue - TBD
Ms. Hite relayed she has discussed parking with the church across the street from Civic; they are open and
willing to discuss a proposal/plan to coordinate parking for Civic Park at the church.
Council President Fraley-Monillas asked the cost of bond debt. Mr. Bauer estimated issuance costs of
approximately 1.5% or $90,000 for a $3M bond issue. Council President Fraley-Monillas asked the cost of
debt service throughout the life of loan. Mr. Bauer said it is approximately $250,000. Council President
Fraley-Monillas observed that was approximately the same as hiring a firm to raise the money which was
estimated at $300,000. Ms. Hite answered the cost is $248,000 per year for 20 years. If the City hired
someone for $300,000, it is a onetime expenditure to raise the $3M. Council President Fraley-Monillas
asked the cost if more than $3.5M needed to be raised. Ms. Hite estimated the cost to raise $3.8-$4M would
still be $300,000.
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Councilmember Buckshnis anticipated the playground would be funded no problem. She was concerned
with using a capital development company because they could not guarantee they would raise $3.5M even
if the City paid $300,000. She feared citizens may be tapped out due to other recent fundraising such as the
Senior Center, the B&G Club and others. Ms. Hite agreed there were some competing projects.
With regard to the debt service, Councilmember Buckshnis asked if the $3.5 M was AAA or AA bonds.
Mr. Bauer said it assumes the City's current bond raising of Aa2. Councilmember Buckshnis said there
have been discussions about increasing the City's reserves to increase the City's bond raising; she felt AA
was sufficient. Mr. Bauer commented rates have come down since earlier this year. Councilmember
Buckshnis referred to the City's investment portfolio, remarking it is doing very well and eight investments
are maturing in 2019. She prefer councilmatic bonds because they are the simplest, easiest and least
expensive, noting the term could be more than 20 years.
Councilmember Teitzel commented this was a very exciting project, near and dear to his heart. He agreed
with Councilmember Buckshnis, this is an amenity that future citizens will enjoy for many years; therefore,
future citizens should pay part of the price. He preferred to spread the cost over a period of time which frees
up funds for street repairs, sidewalks, etc. He pointed out there was nothing about art in the budget,
observing that acquiring and installing art can be expensive and asked if that would be an additional
expense. Ms. Hite said art is incorporated into the construction budget. The 1% for Art funds could also be
used for an installation using the stadium wood, a public process that would include a call for artists, etc.
Councilmember Teitzel observed the Boys & Girls Club's plans sound somewhat indefinite, whether they
plan to build a new structure or continue to use or renovate the existing structure. If the Boys & Girls Club
determines the site will not work for them and they will not remain in their current location, he asked if the
building could be repurposed for something like a year-round farmers market. Ms. Hite answered that is
always a possibility. If the process reaches a point where the Boys & Girls Club indicates they do not want
to be remain on the site, a public process would ensue to determine how to use the space. The building is
not in great shape for use as a Boys & Girls Club but it could be gutted and the shell used for a farmers
market.
Councilmember Tibbott said he was open minded regarding the possibilities. With regard to the capital
development option such as using Campbell and Company, he asked if there was some idea of the
fundraising capacity in the community. Ms. Hite said they haven't done a feasibility study but Campbell
and Company has worked on other projects in the area and thinks there is capacity in the community.
Councilmember Tibbott referred to the estimated debt service for a $3.5 M bond, observing over the life of
the loan, the City would pay $5M, approximately $1.5M in costs.
With regard to the funding options, Councilmember Nelson said his personal preference was not capital
development based on the cost. He preferred a hybrid between Option 2 (Gift Catalogue, stakeholder
efforts), such as $500,000-$1M from that source and the remainder through bonds versus totally bonds. He
was open to councilmatic or voted bonds. Ms. Hite said the gift catalog is an easy thing to put together to
see if there is low hanging fruit and citizens who would like to contribute. She relayed a citizen recently
contacted her offering to contribute a significant amount of money. She summarized there are citizens who
love the project and want to contribute.
Council President Fraley-Monillas referred to the estimated debt service for a $3.5M bond, which estimates
payments for 20 years of approximately $250k/year, summarizing the total cost to borrow $3.5M was
approximately $5M. Mr. James answered yes, it was about $4.9M. As Mr. Bauer stated, rates have come
down since the table was generated; if the Council was interested in that option, Mr. James suggested the
table could be updated.
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Councilmember Johnson recalled discussions about a parking study and Walker Macy saying that was not
part of the original scope. As the project progressed, Walker Macy said parking along 6"' Avenue would
detract from the beauty of the park. Now there are discussions about providing parking at the church, but
she feared that may not be sufficient. She asked if there were plans to do a parking study. Ms. Hite said the
Civic Park will be part of the citywide parking study. Councilmember Johnson asked the status of the Boys
& Girls Club's lease. Ms. Hite said their lease is up at the end of 2020.
Councilmember Johnson commented on the stadium's termite infestation and asked the status of the Boys
& Girls Club building, whether it was sawdust as well. Ms. Hite answered she did not believe so; the
building just does not meet the Boys & Girls Club's needs. If the Boys & Girls Club does build on the site,
their preference is to demolish the structure and build a new building with up to 20,000 square feet.
Councilmember Johnson commented the City owns the building, so it is the City's preference, not the Boys
& Girls Club's preference. Ms. Hite agreed, advising the Council will have an opportunity to weigh in on
a long term lease with options and preferences but that is not available at this time.
Councilmember Johnson said an issue of concern to her is the high water table, the sphagnum peat moss,
the prehistoric lake and the water contained on the site. She questioned whether earthwork on top of that
would exacerbate the problem and create other issues. She suggested pursuing that separately with Ms. Hite
and the engineering department. Ms. Hite answered Walker Macy has a subcontract with KPFF who is
reading and interpreting the geological study and water table information to figure out the stormwater
system. Walker Macy is confident in KPFF's ability to figure it out; they have been in contact with the
City's engineering department on a constant basis. Councilmember Johnson invited Ms. Hite to bring that
issue to the Planning & Public Works Committee once more technical information is available.
Councilmember Johnson said an option that has not been discussed is pay-as-you-go. She acknowledged
there were benefits to bonding but the City has also been very successful in obtaining grants and
contributions. She recognized the preference to do the project as a whole and not break it into stages, but
asked what a pay-as-you-go plan looked like. Ms. Hite answered it would be very difficult to phase this
project due to grade issues on the site including the drop from 7"' Avenue to 6" Avenue. Anyway the
property is divided up would leave a less than ideal as-is condition. In talking with Walker Macy about a
phased approach, there was no good way to divide it up which led to the decision to do the full project. A
pay-as-you-go method would mean in 2020 if there was no other funds identified, the project would start
with $8.8M and likely would not be able to be finished. Determining what could be left undone and what
could be done in the future would require additional analysis by Walker Macy.
Councilmember Johnson said that analysis would be worth of a back-of-the-envelope sketch. She
acknowledged it may depend on what is learn from the geotech analysis. Ms. Hite said because there are so
many issues underground, a large part of the budget is related to site conditions. The pay-as-you-go method
might address the site conditions such as drainage and still have the same park on top. She summarized a
large part of the cost is site conditions to prepare the park for development.
Councilmember Johnson suggested the gift catalog may be a great way to obtain trees, plants, etc.
Councilmember Buckshnis anticipated there will be a bigger gap than $3M based on the site conditions.
She agreed with Councilmember Nelson's suggestion for a combination of funding sources. She asked what
lead time would be required to underwrite a bond issuance. Mr. Bauer estimated three months.
Councilmember Buckshnis observed rates are down now and it may be advantageous to redo the numbers
and project out three months. She was not in favor of a pay-as-you-go method as this is too important of a
project to piecemeal. She suggested picking a number for councilmatic bonds, anticipating the peat will
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June 4, 2019
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cause problems and increase costs. Ms. Hite agreed, noting that was the reason for putting qualifiers on that
amount. She and Mr. James have discussed including $1M from the General Fund in the budget and the
rest from councilmatic bonds. It will depend on what else the Council wants to fund in the budget.
Councilmember Buckshnis said a 20 year $250,000 bond payment was not out of line for a city Edmonds'
size. The City has plenty of money, the outlook for the next couple years is rosy although the future is not
guaranteed. She suggested looking at the numbers for $2.5M to $3.5M, noting there is money in the General
Fund and $2M has already been earmarked in the General Fund for Civic Park. Ms. Hite agreed it depended
on how the Council wanted to balance funding sources. The reason staff brought this to the Council early
on is to allow Council time to think about it, think about other priories, the potential need to identify
additional funds for the waterfront redevelopment project due to the high bids, etc.
Councilmember Buckshnis observed bonds were used for Marina Beach, City Hall, etc. Ms. Hite agreed it
has been a while since the City bonded for a project. Councilmember Buckshnis commented several
investments are reaching maturity in the next couple years and people like to buy municipal bonds from
cities that are successful.
Ms. Hite summarized staff will return in September to discuss this again. Mr. James will monitor rates and
if they begin to drop, staff will return to Council sooner. Councilmember Buckshnis suggested the Finance
Committee could consider it as well.
3. ADJOURN
With no further business, the Council meeting was adjourned at 6:55 p.m.
DA I Q. EARL NG, MAYOR CqA Y, CffY CL
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June 4, 2019
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