20191203 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES
December 3, 2019
ELECTED OFFICIALS PRESENT
Dave Earling, Mayor
Adrienne Fraley-Monillas, Council President
Michael Nelson, Councilmember
Kristiana Johnson, Councilmember
Thomas Mesaros, Councilmember
Diane Buckshnis, Councilmember
Dave Teitzel, Councilmember
Neil Tibbott, Councilmember
ALSO PRESENT
Zach Bauder, Student Representative
1. CALL TO ORDER/FLAG SALUTE
STAFF PRESENT
Phil Williams, Public Works Director
Patrick Doherty, Econ. Dev & Comm. Serv. Dir.
Shane Hope, Development Services Director
Scott James, Finance Director
Dave Turley, Assistant Finance Director
Jessica Neill Hoyson, HR Director
Shannon Burley, Deputy Parks & Recreation Dir.
Rob English, City Engineer
Bertrand Hauss, Transportation Engineer
Mike DeLilla Senior Utilities 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 5" Avenue North, Edmonds. The meeting was opened with the flag salute.
2. LAND ACKNOWLEDGEMENT
Councilmember Nelson read the City Council Land Acknowledge Statement: "We acknowledge the
original inhabitants of this place, the Sdohobsh (Snohomish) people and their successors the Tulalip Tribes,
who since time immemorial have hunted, fished, gathered, and taken care of these lands. We respect their
sovereignty, their right to self-determination, and we honor their sacred spiritual connection with the land
and water."
3. ROLL CALL
City Clerk Scott Passey called the roll. All elected officials were present.
4. APPROVAL OF AGENDA
COUNCIL PRESIDENT FRALEY-MONILLAS
TEITZEL, TO APPROVE THE AGENDA IN
UNANIMOUSLY.
5. PRESENTATIONS
MOVED, SECONDED BY COUNCILMEMBER
CONTENT AND ORDER. MOTION CARRIED
1. PROCLAMATION HONORING BILL ANDERSON
Edmonds City Council Approved Minutes
December 3, 2019
Page 1
Mayor Earling read a proclamation proclaiming Tuesday December 3, 2019 as Bill Anderson Day in
Edmonds and recognizing him for his photographic skills, patience and environmental leadership in
bringing to life photographs of nature and expressing heartfelt appreciation for the attention and service to
the community, nature and humanity that he has given to the community of Edmonds.
Mr. Anderson thanked the Council, Mayor and friends in audience. He explained photograph started as
hobby, one of many, and he was glad it benefited community and that many people enjoyed his photographs.
As an Edmonds residents since 1991, he was glad he had been able to give something back to the
community. He introduced his wife Pauline and son Daren.
2. SOUND TRANSIT PRESENTATION
Development Services Director Shane Hope commented this topic is near and dear to the Council and the
community particularly parking and access related to the Sound Transit station as well as available
opportunities and challenges.
Mayor Earling recognized Patrice Hardy, a person he has worked with for decades at Sound Transit, and
expressed appreciation for the hard work she does. Mayor Earling advised a number of projects have been
suggested and screened by Sound Transit, however, the potential parking site at 2nd & Dayton is off the
table.
Kamuron Gurol, North Corridor Development Director, Sound Transit, introduced Chris Breiland,
Fehr & Peers. He commented it has been a pleasure to work with Ms. Hope, Phil Williams and their staffs.
Sound Transit is also working with the City Mukilteo and look forward to a continued good relationship as
they work through the potential projects to identify a good fit for Edmonds.
Miranda Redinger, Project Manager, Sound Transit, presented regarding Edmonds and Mukilteo
Stations Parking and Access Improvements:
• Project Overview
o Sound Transit is investing in parking and access projects at Edmonds and Mukilteo Sounder
Stations
■ Part of the 2016 ST3 Funding Measure
■ $40 million (2014$), split between both stations
• Projects identified, evaluated, and narrowed in this phase
Sound Transit Board makes final decision to proceed and fund selected projects
Spring 2019 Community Input
o Initial Outreach in March -April
• More than 1,100 people participated in-person and online
■ Asked community about barriers to access: limited parking, limited sidewalk and bike
facilities, poor transit connections, for example
■ Project Identification
o Data Collection & Plan Review
• Where Sounder riders are coming from and going to
• How riders reach the station
• Parking utilization
= Traffic congestion
= Sidewalk/bike facility conditions
■ Transit schedules
= Review of local plans from cities, counties, other agencies
o Initial Project Identification
= More than 50 projects identified from:
Edmonds City Council Approved Minutes
December 3, 2019
Page 2
— Public input
— Sound Transit plans
— City plans
— Other agencies
— Project team
■ Evaluation Framework
o Project Goals
■ Increase ridership on Sounder North
• Consistency with Sound Transit and other agency goals
■ Implementation by 2024 with available funds
Avoids/minimizes environmental impacts and enhances community outcomes
Improves access and safety for all modes
o Process
■ Identify potential access improvements
— Improvement projects were drawn from city, county and transit agency plans as
well as from discussions with stakeholder and outreach to the public
* Pre-screen
— 57 improvement projects were then put through a prescreening process which
removed projects that were ineligible according to project guidelines
■ Evaluate
— 38 improvement projects that made it through the prescreening process were then
evaluated against 19 criteria based on the goals of the project
■ Recommend
— 25 improvement projects are recommended or highly recommended; the Sound
Transit Board will consider which projects to advance into next phase.
o Evaluated Improvement Projects
1. Port of Edmonds gravel lot
2. Harbor Square parking lot
3. City of Edmonds lot on the SE corner of W Dayton St and 2nd Ave S
4. Washington State Ferries parking lot adjacent to station
5. Salish Crossing parking lot
6. Remote parking at Old Woodway Campus
7. Remote parking at SR 104 and 100" Ave W
8. Remote parking at 76th Ave W and Olympic View Dr
9. Remote parking at Westgate Chapel
10. Remote parking at Edmonds Grace Lutheran Church
11. Additional on -demand secure bike lockers
12. 228th St SW bike and pedestrian connection
13. Downtown pedestrian lighting improvements
14. 100" Ave W and 9th Ave S bicycle improvements
15. Bowdoin Way bicycle improvements
16. 80" Ave W bicycle improvements
17. Pine St and SR 104 pedestrian improvements
18. Additional bus bays at Edmonds Station
19. SR 104 bus improvements
20. Wind and rain screening at Edmonds Station
21. Bus transfer timing improvements
o Edmonds Station — Draft "Recommended" Projects
■ Parking adjacent to the Sounder station
■ Bus timing improvements
• Wind and rain screening at the station
Edmonds City Council Approved Minutes
December 3, 2019
Page 3
• On -demand bike lockers at the station
■ Additional bus bays/layover near the station
■ 228th Street pedestrian and bicycle connection
■ SR 104 bus improvements
■ Downtown pedestrian lighting/crossing improvements
■ Pine Street pedestrian improvements
■ SR 104 pedestrian improvements
■ Remote parking at Edmonds Grace Lutheran Church
■ Parking at city -owned lot at 2nd Avenue/Dayton Street
— Will be removed from consideration
■ 228" Street pedestrian and bicycle connection
Edmonds Station — System Access Fund Projects
0 100th Ave W/9"' Ave S Bicycle Improvements
o Bowdoin Way Bicycle Improvements
0 80" Ave W Bicycle Improvements
Fall 2019 Outreach
o October -November outreach
■ More than 1,700 participants online and in-person
■ Nearly 500 completed surveys on projects
■ General concurrence with technical evaluation
■ Strongest support for transit schedule alignment
■ Strong support for parking near the station
■ Support for pedestrian lighting and crossing improvements
• Least support for remote parking
r Next Steps
o Similar briefing in Mukilteo
o Orient new Edmonds Councilmembers to project
o Advance project list to Sound Transit Board
o Based on Board direction, begin Conceptual Engineering and Environmental Review
Councilmember Buckshnis referred to height restrictions in the waterfront area and asked how many stories
were being considered. Mr. Breiland answered the team is keenly aware of the height restrictions. Parking
structures were evaluated early on but they did not meet the prescreening criteria for cost so the
recommended projects do not include any structured parking.
Councilmember Buckshnis commented there is a parking crunch, she was under the impression that a
boutique parking structure could be constructed for less than $10M; there is $40M available. Mr. Breiland
responded parking availability was identified as a major area of interest and they were able to identify
approximately 150 parking spaces that could be added in the immediate vicinity of the station without
incurring the cost of a parking structure. Given that those options are available, that is the most promising
lead in reducing the parking crunch and managing the overall budget to improve access for all modes.
Councilmember Buckshnis said one of options identified was the Harbor Square parking lot which she
assured was already full all day. Mr. Breiland said in some cases it was considering shared parking
opportunities or obtaining land and reconfiguring it for parking in a structure which is where the high costs
were identified.
Councilmember Tibbott referred to concern expressed by the community about the number of bike lanes
being built in the City and that they eliminate parking spaces, especially in congested areas. He asked about
the value of bike lanes, other possible uses besides bikes in those lanes and why that would be helpful. Mr.
Breiland said bike lanes and bike facilities are a fairly significant piece of what is being considered,
Edmonds City Council Approved Minutes
December 3, 2019
Page 4
balancing access to all modes. Bicycles have a good distance coverage. The park & ride data collection
indicates the majority of riders live within 3 miles which is approximately a 15-20 minute bike ride. He
recognized not everyone can ride a bicycle due issues such as weather, terrain, time of day, etc. Improved
ridership has been seen in areas where bicycle infrastructure has been improved. They are also looking
toward the future where modes like e -bikes are becoming more popular and prices are coming down which
opens bicycling to a wider range of people. Bicycles may be a slightly marginal mode now but they view it
as a good growth mode in the future; the Edmonds community is a good opportunity for that as there are a
lot of residential streets. They acknowledge there are parking impacts, in some cases a lane needs to be
reconfigured and there could be traffic impacts. As project moves into Phase 2, those impacts will be
considered in more detail.
Councilmember Tibbott inquired about alternate forms of transportation that could use those lanes. Mr.
Breiland answered although it has not taken off in this area yet, many of the bike share programs in the
country are morphing into scooter share which are generically referred to as slow modes. Scooters and other
wheeled vehicles that look like a cross between a unicycle and a skateboard can also use bike lanes. Portland
realized bike lanes can accommodate modes like scooters so they are not using the sidewalk and allow for
a more managed system. Electrically assisted mobility devices, some of which have not yet been invented,
can also use bike lanes. It is a better way to manage the space and keep pedestrian safe and keep slower
modes in a more appropriate place.
Councilmember Teitzel observed that project 6, 7, 9 and 10 involved remote parking at various locations.
He asked how potential passengers would be transported from the remote parking to the Sounder Station.
Mr. Breiland answered Sound Transit has discussed options with their legal team. At the outset of the
project, everything was on the table including parking with remote shuttle connections, etc. However, in
reviewing the funding authorization in ST3, there are limitations with Sound Transit incurring ongoing
operation costs for a transit -like service like a shuttle that is not high capacity transit which is what Sound
Transit is obligated to operate.
Mr. Breiland explained the idea of pairing remote parking with a shuttle was eliminated so consideration
was given to how the remote parking could be served by existing Community Transit service. As a result,
they focused on remote parking that have existing Community Transit routes; a few do not exist yet and
those were suggested by members of public and Sound Transit wanted to give them due diligence in the
event they were served in the future. The timing and frequency of transit was a challenge for remote parking
both in Edmonds and in Mukilteo. They often heard at the public open houses that people on Sounder are
primarily going to Seattle and typically have another bus connection from the Sounder station at King Street
to somewhere else downtown which resulted in a fairly lengthy time penalty. That timing issue was the
reason remote parking did not rate particularly high in the technical analysis. Sound Transit is working with
Community Transit on timing improvements some of which benefit the existing park & ride lots.
Mayor Earling commented coordination is not limited to the top of the hill to downtown, coordination is
also needed from the top of the hill east as a large population lives above the crest of the hill.
3. HOUSING: COMMISSION QUARTERLY
Development Services Director Shane Hope recognized the Housing Commission members in the audience.
She reviewed:
• Background
o Council Resolution # 1427 established Housing Commission & Commission's role to:
■ Develop diverse housing policy options for Council consideration designed to expand the
range of housing (including rental and owned) available in Edmonds; options that are
Edmonds City Council Approved Minutes
December 3, 2019
Page 5
irrespective of age, gender, race, religious affiliation, physical disability or sexual
orientation
o Housing Commission applications & appointments were from city-wide
o July 2019, City Council approved:
■ Budget for D.S. Dept. to hire professional services for meeting facilitation & community
engagement
• Video -recording of meetings instead of detailed minutes
o Professional services RFQ process occurred August/Sept
o Housing Commission had first meeting Sept. 26
■ Get acquainted with process & members
■ Identify topics of interest
■ Decide on regular monthly meeting times: second Thursday of each month, 6:30 — 8:30 pm
in Brackett Room
o Housing Commission's second meeting was October 10
• Review of topics & schedule
• Ground rules & decision-making principles
■ State laws related to housing & planning
• Edmonds Comp Plan
■ Community engagement goals
o Third meeting of Housing Commission was November 14
• Demographic & housing data
• Discussion of background materials, including:
• VISION 2050 Housing Background Paper
■ Edmonds Housing Needs Study
• Affordability Factors: Presentation from Alliance for Housing Affordability
• Draft Community Engagement Plan
o Other activities:
• Extensive background reading
■ Training on Open Public Meetings Act
Community Engagement
Current/Recent Future
o New website for Commission's work o Surveys
o Links to other City webpages o Online activities
o Housing news memo from department director o Public open houses/special*
meetings....
o Press releases o Participation at community events
o Business cards for Commissioners to hand out o Flyers/posters
o Public comment period and comment box at o Other activities
each meeting
Next steps
0 2019: Complete info -gathering stage to have common understanding of-
Timeline,
fTimeline, milestones & process
■ Housing terminology
• Resources & programs
• Housing data
■ Cost factors & priority issues to consider
■ Definition of "housing policy options"
0 2020: Moving into policy discussion and more community outreach, including:
■ Multiple public activities & events
• Policy discussions
• Policy topic prioritization
Edmonds City Council Approved Minutes
December 3, 2019
Page 6
■ Development of draft policy options
■ Refinement of recommendations
■ Finalization of recommendations for Council consideration & other public input
Council President Fraley-Monillas asked the date of the December meeting. Ms. Hope answered it was
December 12th. Council President Fraley-Monillas asked if the commission was still in the training stage.
Ms. Hope answered the December meeting will include information on housing costs and factors and will
begin policy discussions in January. That will coordinate well with having a regular City Council liaison
beginning in January. Several Councilmembers have attended meetings on a rotating basis in 2019.
Councilmember Tibbott said he attended the first meeting and said it was a fantastic group. With regard to
public engagement, in addition to getting the word out, he wanted to ensure the commission got the word
in. Ms. Hope assured it was definitely both. Councilmember Tibbott inquired about the method for
receiving comments and ensuring they are from a variety of people and avenues. Ms. Hope answered the
community engagement specialist will assist with that as well as the commission having input. There has
been discussion about surveys; one of the challenges with online surveys is they only capture part of the
community which may not be the broadest. Consideration is being given to other methods such as sample
mailings, etc. The idea is get input as well as ensure people are aware of the process. Councilmember
Tibbott appreciated that that was a priority. Going forward, he was interested in measurables related to the
amount of input the commission was getting. Ms. Hope assured all the public input was being tracked.
Councilmember Teitzel thanked commissioners for their work and diligence in this important effort. He
asked if staff planned to have the Affordable Housing Alliance (AHA) of Snohomish County present to the
commission regarding concepts like missing middle housing. Ms. Hope said AHA made a presentation at
the November meeting and she expected there may be other presentations. The thought has been that staff
will provide some information such as data specific to Edmonds, but specialists like AHA and others would
be invited to make presentations and respond to questions and comments.
6. AUDIENCE COMMENTS
Lee Kimmelman, Edmonds, said the Sound Transit presentation answered a lot of his questions. He
recalled a hullabaloo in the summer about parking issues in Edmonds which have diminished with the cold
weather. He cautioned the Council against waiting until next spring when parking becomes a problem to
raise the issue again. Right now, when parking is not a problem, is the time to think about it so when parking
becomes a problem, the City has a plan and solution in mind.
Kathleen Sears, Edmonds, expressed her gratitude to Mayor Earling and the City Council for recognizing
Bill Anderson's extraordinary work, remarking he is truly an Edmonds treasure. His portfolio of
photographs reminds people why they live in Edmonds and how blessed they are to call Edmonds home as
well as the importance of the Edmonds Marsh and the waterfront area to life in Edmonds. His photographs
illustrate that restoration of marsh is much more than stormwater management, hydrology and daylighting
Willow Creek although those are also important to restore salmon. His photographs of birdlife remind of
the total ecosystem that Edmonds residents are the stewards of and to protect and nature that life. Climate
change is pressing in and Edmonds is fortunate to have such an amazing natural setting on the edge of
downtown. She thanked the City Council for their past and future work to protect, nurture and restore the
marsh. The number of people present to honor Mr. Anderson shows how many care. She urge the Council
to include citizen input in their plans for the marsh including positions for the public on committees. She
hoped future residents will be able to look at Mr. Anderson's photographs and say they still see that wildlife.
Rich Senderoff, Edmonds, recognized Bill Anderson, commenting it has been said a picture is worth a
thousand words; Bill speaks often and loudly about the role of wildlife and nature in making Edmonds a
unique and special place. He always seems to photograph wildlife in action, sending the message that
Edmonds City Council Approved Minutes
December 3, 2019
Page 7
Edmonds wildlife is an active and participative part of the community. He thinks of two words in relation
to Bill's photographs, first, inspiration; through his photographs people are remind of how lucky we are
that we do not need to travel far or climb mountains to experience the diversity of nature. He inspires
everyone to explore and enjoy nature as well as teach others to do the same. The second word is advocacy;
Bill's photographs speak volumes about the need to protect and live harmoniously with wildlife and natural
surroundings to ensure future generations can experience the wonders of nature around us. In this way, Bill
embodies the mission to explore, enjoy and protect natural spaces, the credo shared by conservationists like
John Muir and the founders of the Sierra Club.
Laura Johnson, Edmonds, spoke in favor of adding a human services coordinator. She recalled
participating in an event a few years ago designed to give insight into the hurdles to find, research and
access services related to housing, job and health instability. Housing, job and health instability are
interconnected, sometimes one leading to another, yet the services available to address them are often siloed
and navigating the system is not intuitive. During the event, attendees crossed the room numerous times
attempting to access services; at one point she was arrested for not paying fines. At the end of the simulation,
she was overwhelmed and frazzled but also very aware of her own privilege and fortune. Her participation
in the event overlapped with her child's 3 -year health crisis that required she navigate the healthcare system,
nearly a full-time undertaking. She could not image doing it without the resources she had available
including a car, stable home, supportive spouse, financial resources, internet, smartphone, time and
flexibility to research, make and attend appointments, and friends and family to help with her other children.
Taking away one of those resources, the successful end to a years' long struggle may have been very
different. That happens with many people and their voices are often not heard because they are buried in
their struggle.
Ms. Johnson explained a human services coordinator position could be the first line of support for
community members struggling with instability. This position would reduce the enormous amount of time
and research as well as dead -ends and missed opportunities often encountered when families and
individuals struggle with any form of instability. The position could mean the difference between keeping
a stable job or leaving to care for a sick family member, that a fixed income resident has access to services
to repair a furnace, allow a family to access coordinated services that will allow them to avoid foreclosure
or eviction, or help a parent looking for resources to support a suicidal teen or someone needing resources
for mental illness or to escape an abusive relationship. Access to resources and coordinated services
strengthens communities by providing the quality of life for the most vulnerable citizens and positively
influences critical social factors. She urged the Council to approve DP #2 to provide Edmonds with a human
services coordinator, a service that most cities already provide.
Mindy Woods, Edmonds, shared her journey with homelessness in Edmond. A single mom and Persian
Gulf Navy Veteran, she was unable to find resources when her apartment was taken over by black mold.
She recalled spending a 7'/z hour day parked at her son's school looking for resources and ended up with
55 phone numbers but no answers to predicament. She did that for two days until finally the YMCA called
her back but put her on a four month waitlist. In the meantime, having nowhere else to go, they ended up
couch surfing outside the local area because she was so ashamed. She urged the Council to approve a human
service position, pointing out for people on the verge of homelessness, it is cheaper to help them stay in
place than to help get someone out of homelessness. For those who are already homeless, there needs to be
a place to access as many services in the shortest period of time possible to get back into stability. The
longer someone is homeless, the more chances they will accumulate fines and legal predicaments as well
as stress to their physical and mental health. The Koenig report addressed the need for human services, 230
people are already outside their homes and even more are barely hanging on.
6. APPROVAL OF CONSENT AGENDA ITEMS
Edmonds City Council Approved Minutes
December 3, 2019
Page 8
COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO
APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items
approved are as follows:
1. APPROVAL OF COUNCIL SPECIAL MEETING MINUTES OF NOVEMBER 26, 2019
2. APPROVAL OF CLAIM CHECKS AND WIRE PAYMENT
3. ORDINANCE AMENDING EDMONDS CITY CODE TITLE 4 AND EDMONDS
COMMUNITY DEVELOPMENT CODE TITLE 20 TO ALIGN WITH STATE BUSINESS
LICENSE SERVICE PRACTICES
4. CONFIRMATION OF APPOINTMENT OF NIKKI OKIMOTO GLAROS TO DIVERSITY
COMMISSION
5. CONFIRMATION OF APPOINTMENT OF SEKOU KONE TO DIVERSITY
COMMISSION
8. PUBLIC HEARING
1. UTILITY RATE ANALYSIS, PUBLIC HEARING AND FUTURE ADOPTION OF A
UTILITY RATE ORDINANCE
Mr. Williams introduced City Engineer Rob English and Senior Utilities Engineer Mike DeLilla. He
reviewed:
Key assumptions
o Annual Cost inflation
■ General (CPI): 2.5%
■ Benefits: 10.0%
■ Alderwood Water Purchase Costs:
—8% in 2020; (21.8%)
—8.5% in 2021; (4.4%)
—8% in 2022; (5%)
—5% Thereafter
■ Construction Costs: 4.0%
o Annual Growth
■ Water/Sewer: ;�-- 85 ERUs per year
■ Stormwater: �:-- 55 ESUs per year
Water Revenue Requirement Forecast
o Rate increases are needed to generate funding for:
• Actual Increases from 2017-2019 in Alderwood Wholesale Water purchase costs that were
above original 2016 estimates
■ Increased future Alderwood Water purchase costs (8-8.5% vs now 5% projected)
■ Inflationary Increases for maintenance and operations of the Water Utility
• Inflationary Increases for our 1% yearly system replacement for pipes that are:
— Past their useful life and breaking with a higher frequency
— In need to be upsized to increase fire flow in currently deficient areas
Edmonds City Council Approved Minutes
December 3, 2019
Page 9
Exjqh!L
ro osed
2019
2020
1 2021
2022
Annual Water Rate Increase
4.5%
4.5%
4.5%
Monthly single—family bill
7ccf $45.66
$47.71
$49.85
$52.11
Tax
6.41
$6.05
$4.99
$5.21
Total
$52.07
$53.76
$54.85 1
$57.32
o Rate increases are needed to generate funding for:
• Actual Increases from 2017-2019 in Alderwood Wholesale Water purchase costs that were
above original 2016 estimates
■ Increased future Alderwood Water purchase costs (8-8.5% vs now 5% projected)
■ Inflationary Increases for maintenance and operations of the Water Utility
• Inflationary Increases for our 1% yearly system replacement for pipes that are:
— Past their useful life and breaking with a higher frequency
— In need to be upsized to increase fire flow in currently deficient areas
Edmonds City Council Approved Minutes
December 3, 2019
Page 9
- Decrease water loss in older leaky pipes
Water Enterprise Fund Incr* and Taxes**
Year
2016 2017
2018
2019
2020
2021
2022
Rate % Increase
9% 9%
9%
9%
4.5%
4.5%
4.5%
Tax Rate**
18.9% 7.07%
15.5%
4.05%
12.68%
10%
10%
True %
8.01%
8.06%
8.19%
3.24%
2.01%
4.50%
Increase/Month I
I
I 1
1 $1.69
1 $1.08
1 $2.47
*Assumes Single Family Residence and Usage of 7ccf per month and annual rate increase of 4.5%.
**Taxes are applied after rates are assessed based on usage.
0 2008 Lane vs City of Seattle determined Public Fire Protection was a General Governmental
Service.
■ 2009 Edmonds Council raised tax rate to enterprise water fund from 10% to 18.9% so Fire
Hydrant and Fire Protection maintenance costs could be borne by the general fund.
0 2013 State legislature updated laws and stated that Public Fire Protection was a water enterprise
fund service
■ 2016 City Council approved lowering of rates back to 10% between 2017 and 2021
Stormwater Revenue Requirement Forecast
o Rate increases are needed to generate funding for:
w Inflationary Increases for maintenance and operations of the Storm Utility
■ Inflationary Increases for 1% yearly system replacement for pipes that are:
- Past their useful life,
- Are heavily damaged or corroded,
- Show chronic root intrusion
- Need to be upsized to mitigate flooding
■ Increased costs to keep in compliance with NPDES requirements
Sewer Revenue Requirement Forecast
Existin
Propose
2020
1202112022
2019
2020
2021
2022
Annual Stormwater Rate Increase
9.5%
9.5%
9.5%
Monthly single-family bill
$17.18
$18.81
$20.60
$22.56
Tax
1.72
1.88
2.06
2.26
Total
1 $18.091
$20.69
1 $22.66
$24.82
o Rate increases are needed to generate funding for:
w Inflationary Increases for maintenance and operations of the Storm Utility
■ Inflationary Increases for 1% yearly system replacement for pipes that are:
- Past their useful life,
- Are heavily damaged or corroded,
- Show chronic root intrusion
- Need to be upsized to mitigate flooding
■ Increased costs to keep in compliance with NPDES requirements
Sewer Revenue Requirement Forecast
o Rate increases are needed to generate funding for:
$1OM +/- Bond acquisition for WWTP Pyrolysis Project (Incineration replacement)
- Inflationary Increases for maintenance and operations of the Sewer Utility
- Inflationary Increases for 1% yearly system replacement for pipes that are:
• Past their useful life
• Are heavily damaged or corroded
Show chronic root intrusion
• Need to be upsized to mitigate sewage overflows
• Show groundwater or sewage infiltration and inflow
Sewer Financial Plan Scenarios
Existing
Existing
Pro osed
2020
1202112022
2019
2020
2021W02
Annual Sewer Rate Increase
5%
5%Monthl
sin le-famil bill
$43.65
$45.83
$48.12Tax
$4.37
$4.58
$4.81Total
$48.02
$50.41
$52.93
o Rate increases are needed to generate funding for:
$1OM +/- Bond acquisition for WWTP Pyrolysis Project (Incineration replacement)
- Inflationary Increases for maintenance and operations of the Sewer Utility
- Inflationary Increases for 1% yearly system replacement for pipes that are:
• Past their useful life
• Are heavily damaged or corroded
Show chronic root intrusion
• Need to be upsized to mitigate sewage overflows
• Show groundwater or sewage infiltration and inflow
Sewer Financial Plan Scenarios
Existing
Proposed
Annual Sewer Rate Increase 12019
2020
1202112022
Edmonds City Council Approved Minutes
December 3, 2019
Page 10
Status Quo: Full Cash fundin for CIP
8%
8%
8%
$10M WWTP Bond
5%
5%
5%
$I OM WWTP Bond 3% increases 2020-22
3%
3%
3%
* Graph of long-term forecast: outstanding debt principle balance
* Graph of long-term forecast: cumulative debt service interest paid
s Total monthly increase (all 3 funds)
Year
Existing
Proposed
2022
Monthly Total*
Monthly Sin le Family Bill
2019
2020
2021
2022
Status Quo: Full Cash funding for CIP
$48.02
$51.85
$56.00
$60.48
$1 OM WWTP Bond
$48.02
$50.541
$52.93
$55.58
$1OM WWTP Bond 3% increases 2020-22
$48.02
$49.46
$50.93
1 $52.47
* Graph of long-term forecast: outstanding debt principle balance
* Graph of long-term forecast: cumulative debt service interest paid
s Total monthly increase (all 3 funds)
Year
2020
2021
2022
Monthly Total*
$4.93
$4.53
$6.15
Total % Increase*
4.14%
3.66%
4.79%
Monthly Total**
$5.89
$5.57
$7.27
Total % Increase**
1 4.95%
1 4.46% 1
5.57%
Difference
1 $0.96
1 $1.04 1
$1.12
*Assumes 4.5% Water, 3%Sewer and 9.5% Storm Rate annual Increase
**Assumes 4.5% Water, 5%Sewer and 9.5% Storm Rate annual Increase
2019 Total Bill - 3/4" single family Q. 10 ccf*
• city
2019
2020
Seattle
$265.51
$273.48
Kirkland
$193.22
$199.01
Shoreline****
$175.43
$180.69
Lake Forest Park
$174.38
$179.61
Mountlake Terrace
$131.61
$168.66
Woodinville
$158.61
$163.37
Mukilteo
132.38
$140.33
Edmonds
$132.23
$141.58
Arlin on**
$129.77
$133.66
Redmond
$120.48
$124.09
Everett* * * *
$118.40
$121.95
Lynnwood
$104.72
$107.86
*Rates assume 10 ccf/month usage for water/sewer as applicable
*Rates assume 3% rate increases for each year after 2019
*Edmonds rates increased per recommendations
* * Has not had a rate adjustment in at least the past 6 years.
*** 8% Water, 42.5% Sewer and 95% Storm increase 12020
* * * * 10% total increase expected in 2020
* * * * * 10% increases in storm rates for 2020 and 2021
■ Recommendation:
o Raise sewer rates 5% in 2020, 2021, 2022 to continue to meet the capital needs of the City's
Sewer Utility Fund including the WWTP Pyrolysis project. This balances the cost of this
project more evenly between current and future ratepayers
Chris Gonzalez FCS ...."The strategy of 5% annual sewer rate increases (coupled with the $10
million borrowing for the pyrolysis project) reflects a balanced perspective on the concept of
"generational equity." A purely "pay-as-you-go" funding strategy burdens existing customers
with the obligation of funding future improvements that will benefit a broader base of
Edmonds City Council Approved Minutes
December 3, 2019
Page 11
customers in the future, while deferring capital investment to keep rates artificially low
disproportionately shifts the burden of future capital investments to future customers."
o Water Rates increased at 4.5% in 2020, 2021, 2022 due to Alderwood increases over the next
three years and underlying inflation
o Storm rates as presented at 9.5% to meet capital and maintenance needs for the Stormwater
Fund and increased NPDES permit requirements
Councilmember Buckshnis said she heard from citizens who were not planning to comment regarding their
concerns with capital projects and the pyrolysis project because the packet did not include any information.
She requested the presentation be posted on the City's website, noting she referred citizens to the
presentation in last week's packet. She referred to Mr. Williams' explanation regarding the pyrolysis
project. Mr. Williams said a project webpage for the pyrolysis project could be created and that information
shared there.
Councilmember Buckshnis referred to the February 19, 2019 minutes where the Council approved $2.4M
in the 2019 budget. She asked if the request was for $2.1M more. Mr. Williams said the 2019 budget
includes $2.4M; only $2.1M was spent via the contract with AMERESCO for design. Councilmember
Buckshnis asked if the project was at 60% design. Mr. Williams answered yes. Councilmember Buckshnis
referred to questions Mr. Williams' answered in his memo including height issues, etc. She agreed it would
be great to have webpage for that project.
Councilmember Tibbott asked why the cost of water was increasing so much. Mr. Williams answered it
was entirely Everett's decision what they charge wholesale customers. The same pressures the City has
related to aging infrastructure affect their system as well. Their system is very large, conveying water from
the Cascade Foothills in huge, old, above -ground pipelines into Everett, the capital costs of operating
essentially a surface water collection system and all the treatment facilities for that water to be potable and
the transmission lines that need to be replaced over time is huge and has increased expenses for both Everett
customers and their wholesale water customers. He recognized the benefit of the Everett system that other
cities in South Snohomish County can take advantage of. However, Edmonds, is not in a good position to
effect how Everett sees their rate structure. Edmonds participates in a group through Alderwood, the initial
customer of Everett who wholesales water to Edmonds, who then retails it to its customers. Alderwood
passes on Everett's charge to Edmonds and does not add additional costs. The last agreement was for 50
years and a 48 year agreement was signed in recent years. Alderwood thought Everett was going to have a
21.8% increase but that amount was later reduced.
Councilmember Mesaros referred to Water Enterprise Fund Increase and Taxes and asked if that included
the $1 OM bond issue. Mr. Williams said it did. Councilmember Mesaros observed the average citizen will
pay an additional cost of $4.93. Mr. Williams answered that was for the 3% option; for the recommended
5% option, the additional cost is $5.98. Councilmember Mesaros observed the difference was $0.96/month
more which includes interest costs. Mr. Williams said anything can look good over 3 years; the intent was
to take a longer view. There are three known capital projects in Utilities, two of which are in Sewer, but it's
likely other projects will come up in the 20 years of bonding for this project that will need to be addressed,
some of them large projects. A three year view does not provide the total answer; the graphs illustrate the
impact of continued borrowing over time; at some point enough rate capital needs to be provided to meet
the needs. Staff and the rate consultant feel it's okay to borrow for large projects but eventually the interest
has to be paid.
Councilmember Mesaros recalled Fram oil filter ads that said pay me now or pay me later, encouraging
people to change their oil filter regularly or pay more later when the engine failed. He acknowledged no
one wants to pay more, but he would rather pay less over the long term than pay more over the long term.
Paying a little more now saves money over the long term. He plans to live in Edmonds for the next 20 years
Edmonds City Council Approved Minutes
December 3, 2019
Page 12
and would rather pay less rather than more over a 20 -year period so he supported the 5% increase. Mr.
Williams said even 5% digs a bit of hole that the City will eventually crawl out of but it is not as deep. With
a 0% or even 3% increase, the hole gets deep quickly which means the rate increases necessary in the next
3-6 years would need to be much higher.
Councilmember Teitzel said he understands the need for rate increases to maintain infrastructure but was
also concerned about rate shock for constituents. With regard to the sewer increases, he observed a large
part of the increase was driven by the pyrolysis project and bonding for that project. Bonding will reduce
the impact to the customer over time versus not bonding which would require a larger rate increase. He
asked about the service life of the pyrolysis system. Mr. Williams answered 30 years was a good projection
as it was a mechanical/electrical system. The current incinerator has been in place for 30 years and is on its
last legs. He had no reason to expect the pyrolysis system would not match that service life.
Councilmember Teitzel observed a 30 year service life was expected but the bond was for 20 years. He
asked about a longer term bond, such as 25 or 30 years, to reduce the monthly payment even though it
means more debt service over time. Mr. Williams said they have been looking at 20 years as that was the
rate consultant's recommendation. A longer term increases risks for people providing that funding with
regard to rates. A longer term has not always paid off with lower interest rates. He offered to ask FCS Group
to run that scenario and provide that information before the bond sale which will be after the first of the
year. Councilmember Teitzel said he would like to see those numbers. He observed in the 21St year, citizens
living here would be getting a break as the system would be paid off by that point; from a rate shock
standpoint, the way to reduce the rate shock on current customers would be longer term bonds. Mr. Williams
agreed, pointing out two other sewer projects, Pump Station 1 and the Ballinger sewer, need to be funded
in the next 10 years. If the City bonds for those, future customers will be paying for those whereas current
customers are not.
Councilmember Johnson commented on the issue of equity with regard to sewer rates. In her neighborhood,
the house to her right has seven family members including teenagers and a single woman lives alone in the
house to the left; both pay the same combined utility rate because the sewer charge is the same. She asked
whether consideration had been given in the rate studies to a more equitable evaluation of sewer rates. Mr.
Williams said he worked at one location for an extended period of time that had volumetric sewer rates.
Currently in Washington, 78% of the 218 cities in Washington, according to AWC, have fixed sewer rates.
There are pros and cons with volumetric rates; they are set based on wintertime water consumption, but the
total bill will vary through the year based on water consumption. Edmonds has had fixed sewer rates for a
long time; volumetric rates tend to be confusing to customers. He understood the equity issue
Councilmember Johnson was referring to although it is usually not as pronounced as she described as
household sizes have gotten smaller. The fixed cost including the capital and O&M cost of the treatment
plan, sewer line and lateral sewer, etc. make up most of the cost in the sewer utility; the volumetric piece is
fairly small. Councilmember Johnson said she has heard about those options but hasn't heard any discussion
at the City about those options.
With regard to pyrolysis, Councilmember Johnson asked what happened if it was not installed by 2022 and
how that would affect rates. Mr. Williams said he did not think the system that would be replaced would
last that long. Councilmember Johnson asked hypothetically if the pyrolysis project could be postponed
until 2022, how that would affect rates. Mr. Williams said it would delay the cost but the cost would also
increase by 4% per year. He was concerned with the hypothetical because the current incinerator would not
last another three years.
Councilmember Johnson asked who decides when the incinerator is no longer within the state standards.
Mr. Williams answered it was not that it did not meet state standards, the USEPA wants to get rid of
incinerators like the one in Edmonds. Although they want cities to get full economic value of what was
Edmonds City Council Approved Minutes
December 3, 2019
Page 13
invested in the incinerator, as soon as accumulatively the equivalent of 50% of the cost to install it has been
spent, ignoring inflation, it has to be replaced. Councilmember Johnson asked when the City's incinerator
would hit that trigger. Mr. Williams answered that was hard to say but it was getting close; the City just put
$340,000 into a Schwing pump this year. All it would take would be a few additional failures and it would
meet that trigger.
Councilmember Johnson said she is trying to understand some of the comments at the last Council meeting
that pyrolysis was not a proven technology and it was not used anywhere in the United States. She observed
there are tertiary sewer treatment plants through the United States. She wanted to ensure the City was ready
to move in an economic manner and was not putting in a new system too quickly. Mr. Williams referred to
information in a response he sent to the individual who commented at the last two Council meetings
intended to lessen her concerns. He explained pyrolysis is a very mature technology, it hasn't been used
until recent years on wastewater treatment biosolids but has been used for pulp, waste grass, agricultural
waste, manure, etc. for many years. There are five plants in world using it for biosolids, one of which is in
California which staff has visited and the only one in the United States. Admittedly, pyrolysis is new enough
that there is not an existing example in Washington and Edmonds would be the first have all the biosolids
managed by pyrolysis. There are three under construction.
Mr. Williams commented the wastewater industry is pretty conservative and slow to embrace new things
because nobody wants to make a mistake. For years biosolids could be disposed of by hauling them to the
dump or spreading further processed biosolids on agricultural lands. Transportation costs are becoming
horribly expensive and there are issues brewing in the USEPA about the remaining contaminants in those
biosolids which limits how much longer those disposal methods will be allowed. The choices were to haul
waste somewhere, or install a new incinerator that met the new federal standards, a gasification plant or
pyrolysis. All those options were considered including the cost, environmental benefits, space requirements,
etc. and pyrolysis was determined to be the best. He offered to show the Council that analysis.
Mayor Earling opened the public participation portion of the public hearing.
Lee Kimmelman, Edmonds, expressed concern that this was scheduled for Council approval next week
when limited information was available to the public prior to this meeting and a vote next week gave the
public limited opportunity for comment. He wanted to ensure the process included opportunity for public
comment before the Council votes.
Lee Wilson, Edmonds, referred to the cost of water and asked whether the fact that November had almost
the lowest rainfall in history had anything to do with it. Water is related to snowpack and the availability
of the natural resource for reservoirs which affects costs down the line. The overall presentation tonight
indicates conservation, preservation and lowering one's footprint is the only way to go as rates will go up.
Hearing no further comment, Mayor Earling closed the public hearing.
In response to Ms. Wilson's question, Mr. Williams said an unusual month did not affect rates in the overall
scheme. The Pacific Northwest is blessed with abundant clear and clean water compared to California or
Arizona who struggle to find water that may not be very high quality but they can pay a lot to treat to make
it potable. Little treatment other than chlorination and disinfection and sometimes filtration is required for
the water in the PNW. The City is also blessed to have Alderwood and Everett who manage this large
system that Edmonds participates in. The costs increase each year, but every municipality is dealing with
the issue of aging infrastructure. Most of the waterlines have been in the ground for 50+ years and it is time
for them to be cycled out but that is very expensive and cannot be done all at one.
Edmonds City Council Approved Minutes
December 3, 2019
Page 14
Councilmember Tibbott asked about the total cost of borrowing at the 3% rate increase versus the 5% rate
increase. Mr. Williams said the total cost of borrowing would be the same; to borrow $1 OM over 10 years
means the $10M project ends up costing $14AM but that has to be weighed against the cost of inflation.
Mr. DeLilla said the problem with comparing 3% to 5% is past 2022, the 3% needs to be a lot higher than
5% to make it up. For the first three years it looks like 3% is good deal but in 2023-25 the increases have
to be 5% per year instead of 3%. Mr. Williams said the longer the City waits to start making it up, the more
rapidly it has to be done because the bonds have to be paid off over the fixed term.
Councilmember Tibbott assumed bonding now when interest rates are attractive is a better strategy than
waiting a couple years to see what happens with interest rates. Mr. Williams agreed, explaining the City
had a pay-as-you-go for nine years but interest rates are so attractive now it makes sense to bond now. If
the City waits too much longer, interest rates may go up and it would not be quite as attractive.
Councilmember Tibbott assumed if the projects were done soon at an attractive interest rate and the City
begin paying off the bonds, theoretically they could even be paid off sooner and other projects funded in
the next 10-15 years. Mr. Williams said interest rates cycles over 20 years. It may be possible to refinance
the bonds in the future to realize some interest savings which has frequently been done.
Councilmember Tibbott asked about energy savings with pyrolysis. Mr. Williams answered in addition to
energy savings, there are overall O&M savings with pyrolysis particularly over the incinerator which is
becoming very expensive to operate. Councilmember Tibbott asked if those savings could be passed onto
customers. Mr. Williams answered that was one possibility but there may be other things that influence
those decisions. He summarized there are real savings which can be used to keep rate increase smaller in
future years.
Councilmember Buckshnis commented on the need for a complete packet next week, relaying that some
citizens advised her to say no due to the lack of information. She agreed with Councilmember Teitzel,
commenting there has been such a synthetic rate environment for so many years, it may be beneficial to do
30 year bonds to match the agreement signed with other providers and the life of the equipment. She hoped
the pyrolysis system would last more than 30 years and looked forward to seeing a 30 -year bond scenario.
Mr. Williams said FCS will run those options and hopefully they can be included in next week's packet.
Mr. Williams explained for the Council to take action next week requires development of an ordinance. He
asked if the Council had concerns with sewer rates or were there also concerns with stormwater and water
rates, and was the Council satisfied with having the ordinance reflect the recommendation and staff
providing an additional option on borrowing if it affects the sewer rates. Staff will work with City Attorney
Jeff Taraday to draft an ordinance on water and stormwater rates and provide an additional option related
to a 30 -year borrowing period for sewer. He acknowledged further discussion would be required next week
regarding sewer.
Councilmember Teitzel requested the email that provided answers to questions raised regarding the
pyrolysis project be included in next week's packet. Mr. Williams agreed.
9. ACTION ITEMS
1. 2020 LEGISLATIVE AGENDA
Economic Development/Community Services Director Patrick Doherty said there are items in the
legislative agenda related to pyrolysis and the marsh. He will finalize the exact wording in the legislative
agenda after the Council adopts the budget. He reviewed:
• Proposed 2020 Legislative Agenda
o Every year we prepare a formal Legislative Agenda and present to City Council for approval
prior to the upcoming Legislative Session, in January
Edmonds City Council Approved Minutes
December 3, 2019
Page 15
o Compiled from:
■ Remaining items from last Session
■ Items from all City Departments
■ Items from other agencies
■ Items from individual Councilmembers
■ We met with small groups of Councilmembers and Councilmembers-elect last month
o Presented this evening — final draft of 2020 Legislative Agenda for review and approval
Preview of 2020 session
o Short session (60 days) starting January 13, 2020
o Democrats control both Houses (57-41 House, 28-21 Senate)
o Bills that did not pass in 2019 Session are "alive" for 2020 Session
0 2020 Legislative Changes:
■ New House Speaker — Laurie Jinkins
■ New 1 st District Senator Derek Stanford, new 1 st District Rep. Davina Duerr, Dpty. Mayor
Bothell
■ New 10th District Senator, Ron Muzzall
■ Rep. Jeff Morris (Bellingham) resigns, eff. 1/6/20
o Economic Revenue forecast
■ Revenue: net increase of $299M for current biennium, w/ $313 in reserves by end of
biennium
■ Over last four years revenue has increased by $1.1B but maintenance -level spending has
increased $900M.
0 2020 Anticipated Legislative Issues:
■ Supplemental budget. Capital budget constrained at $70M — no new big projects
■ Capital Gains Tax
■ Transportation Funding (Gov, Leg will balance budgets assuming I-976 upheld)
■ Housing Legislation
■ Climate Change/Environmental bills (plastic bags, clean fuel standards, etc.)
Edmonds Priorities
o Highway 99 Corridor Improvements
■ To continue our initial progress and move forward to final design and construction of initial
improvements for SR 99, we request that the Legislature shift the $6.2 million originally
appropriated for the former Edmonds Street Waterfront Connector project to the SR 99
project in the 2019-2021 biennium
o Pyrolysis Project at Edmonds Wastewater Treatment Plant
■ The City is seeking $500,000 from the State capital budget in 2020 to assist the City in
defraying the cost of implementing this innovative, environmentally superior technology.
We would be the first municipal WWTP in the US to use this technology for full-scale
biosolids treatment. We believe the State has a legitimate interest in having this option fully
proven for use by other plants in Washington. We are hopeful we can also receive support
at the federal level and will be pursuing that option as well.
o Edmonds Marsh Estuary Restoration Project (including Daylighting of Willow Creek and
Redevelopment of Marina Beach Park)
■ The City of Edmonds urges the Governor and the State Legislature seek support and
assistance for the Edmonds Marsh Estuary project in the 2020 Legislative Session and to
adopt a 2020-2022 Capital Budget that includes full funding of the Recreation and
Conservation Funding Board (RCFB), which will allow the City to seek a funding request
of $1.5 million for Marina Beach Park development in conjunction with the daylighting of
Willow Creek and restoration of the Edmonds Marsh.
o Creative Districts Funding and Support
Edmonds City Council Approved Minutes
December 3, 2019
Page 16
■ We support requests on the part of the Washington State Arts Commission for projects and
grants funding, and administrative and programmatic funding, to help further work plans
and capital projects of certified Creative Districts and the onboarding of new Creative
Districts. In addition, support legislation and/or rules changes that could establish
incentives to further Creative District capital projects, affordable housing or studio/maker
space for creatives, location of creative -sector businesses, etc.
o Support Edmonds Waterfront Center (former Senior Center) Funding
■ The City of Edmonds will support efforts by the Edmonds Waterfront Center to secure
funding for the redevelopment of their important community facility on the Edmonds
Waterfront, in particular to assist with efforts to construct to LEED Gold -certified
standards.
o Initiative 976 response
■ Passage of 1-976 has significant consequences for \Edmonds. Repeal of the Transportation
Benefit District authority results in the loss of $700,000 annually that the City uses to
maintain our streets and roads, as well as the loss of significant amounts of potential state
funding. In fact, this fund has also yielded over $6.6 million over the past 5 years to the
City of Edmonds. We encourage the Legislature to evaluate additional sources of local
and state transportation funding to mitigate the impacts of the passage of Initiative 976.
• Support Items
o Invest in Housing Stability and Affordability
o Fire Alarm Testing by City Certified Electricians
o Bolster Resources for Infrastructure Investment
o Local Public Health Funding & Programming
o Public Defense Costs
o Gun Violence Reduction
o Fiscal Impacts of Legislation and Rulemaking
o Land Use Law Review (GMA, SEPA, etc.)
o Economic Development Tools
o Fiscal Sustainability for Local Governments
o Environmental and Climate -Related Issues
o Puget Sound Health and Salmon/Orca Recovery
o Parks, Recreation and Conservation
o Follow/Support Other Cities', Agencies', Partners' Agendas
COUNCILMEMBER JOHNSON MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO
ADOPT THE LEGISLATIVE AGENDA IN CONCEPT AND CONTINUE TO WORK ON THE
DETAILS AS THE COUNCIL FINALIZES THE BUDGET.
Councilmember Teitzel said he was not sure what approving the legislative agenda in concept meant; either
the Council approves it or not. Councilmember Johnson answered it was semantics. She recalled Mr.
Doherty asked that it be approved in concept and the details related to the budget would be worked out. Mr.
Doherty clarified there are two lines that reflect things the City Council has been debating, the exact amount
to appropriate next year for the marsh and reference to the pyrolysis project. The Council can approve the
issues as contained in the proposed agenda and he will update any specifics related to the budget approval.
MOTION CARRIED UNANIMOUSLY
2. PROPOSED CAPITAL FACILITIES PLAN AND 2020-2025 CAPITAL IMPROVEMENT
PROGRAM
City Engineer Rob English explained the only change made was following City Council direction last week,
the narrative was changed to Edmonds Marsh/Willow Creek Daylighting project.
Edmonds City Council Approved Minutes
December 3, 2019
Page 17
Councilmember Johnson asked where the parking study was in the CIP. Public Works Director Phil
Williams said it was not in the CIP; funds were appropriated in the 2019 budget that have not been spent
and staff was not given direction regarding when or how to bring it back in 2020. He assumed the Council
would take up that issue after the first of the year and determine what the Council wants to do.
Councilmember Johnson observed there should be a placeholder to carry forward the funds allocated in
2019 and to identify what year the study will be done. She observed it seemed like an omission. Mr.
Williams said there did not have to be a placeholder, but staff needs clear direction whether the Council
wants to do a parking study in 2020. Councilmember Johnson said her understanding was the Council
agreed they wanted a parking study but had not agreed how it should be done, the cost or how to proceed.
She suggested adding the parking study to the CIP in 2020.
Councilmember Johnson inquired about the where/how the sidewalk crew was reflected in the CIP and the
short sidewalks they intended to work on. Mr. Williams said the cost of the sidewalk crew was built into
the Street Fund 111; the base budget is higher than before the sidewalk crew was approved in 2019. He
clarified the costs are reflected in Fund 111, not as a capital project.
Councilmember Johnson asked if both members of the sidewalk crew had been hired. Mr. Williams
answered yes and they have started work. Councilmember Johnson commented a number of sidewalk
projects are listed, but she would like to see what projects the sidewalk crew will be working on such as
Walnut from 6" to 7"'. Mr. English answered Walnut Street from 6t" to 7ch was funded by a Complete Streets
grant and will be built in 2020 by the street crew. Councilmember Johnson asked what other sidewalk or
non -motorized projects the sidewalk crew planned do in 2020-2022. Mr. Williams answered a lot of the
work the sidewalk crew does is not something that has already been identified. For example, they just
finished pouring curb returns for the rectangular rapid flashing beacon installation at Admiral Way instead
of contracting it out. The sidewalk crew has also been used on City capital projects where it is cheaper and
faster to use the sidewalk crew instead of contracting. There is a list of short sidewalk segments in the 2015
Transportation Plan that staff intends to begin working on in the spring.
Councilmember Johnson looked forward to having those programmed, but unless they were in the CIP, she
did not know what was planned. Mr. Williams said staff could see if some of the projects could be
programmed and send the Council that information. The intent is to start with the highest value projects.
Councilmember Johnson recalled the sidewalk crew would also be doing ADA ramps. These projects have
been in the adopted Transportation Element of the Comprehensive Plan for decades and she looked forward
to getting some of them accomplished.
Councilmember Johnson referred to the request for $40,000 for concrete equipment for the sidewalk crew
and asked if they were pouring that much concrete that that equipment was needed. Mr. Williams said the
truck was approved in the 2019 budget; the $40,000 would be used to purchase a 2.5-3 cubic yard cement
mixer that would slide into the existing dump truck. The mixer would make routine concrete work that
much easier, less cleanup, and higher quality concrete because it can be stirred during transport from the
batch plant to the site. He summarized it was a productivity booster for the sidewalk crew.
Councilmember Johnson referred to the loss of TBD funds and asked where funding for the street
maintenance crew that was previously funded by TBD funds was reflected, noting it would now need to be
funded by the General Fund. Mr. Williams answered it was not included. The initial decision on the lawsuit
was that the initiative was defective and an injunction was granted to the plaintiffs (King County and
Seattle). The initiative is in abeyance now, it was supposed to be effective December 5, 2019 and funds
would have ceased flowing to the City; due to the injunction, the City is still collecting those funds. If the
plaintiffs prevail on the merits of the lawsuit, funding will continue; there is time to await the final outcome.
Councilmember Johnson said it would be prudent for the budget to assume there are no TBD funds available
Edmonds City Council Approved Minutes
December 3, 2019
Page 18
for street maintenance and fund it via the General Fund. If the courts move in a different direction, the City
can move accordingly. Mr. Williams asked the source of the $700,000 to cover that. Councilmember
Johnson answered the General Fund. Mr. Williams said he will discuss it with Finance Director Scott James.
Councilmember Johnson commented there needs to be a contingency plan.
Councilmember Johnson reiterated she was anxious to move planning for the 4" Avenue Corridor ahead.
She would like to see funds in 2020 for design rather than spread over several years and she was interested
in ways to reprioritize park projects to accomplish that. She acknowledged that depends on the decision of
others but felt it was doable if other projects were scheduled in later years.
Councilmember Teitzel referred to the Transportation section of the CFP and the project to modifying
existing lane channelization on SRI 04 to add vehicle storage for ferry users which he assumed was largely
restriping. Mr. Williams said the City has looked at repurposing that section of SRI 04 to meet additional
needs including storage of ferry traffic. If that could be accomplished, there would be fewer occasions and
shorter periods of time when driveways are blocked further east on SRI 04 which reduces impacts to
residential and commercial properties on SRI 04. As this is a state highway, there is no presumption with
having that sheet in the CFP that the City would necessarily pay for that project or provide any funding;
that is a future decision. The State is interested in considering that because they need more parking for
ferries to implement their future three boat program. What that project ends up looking like and how to pay
for it has not yet been determined. No funding has been identified and that project is in the last three years
of the CFP which are not financially constrained.
Councilmember Teitzel observed a cost of $357,000 has been identify in 2023. Presuming the state takes
on this project, it could be removed from the CFP. Mr. Williams said if the state took on the project, he
would recommend removing it from the CFP. The $3757,000 estimate includes a lot of assumptions; it was
primarily seen as restriping, new signage, and reconfiguring the space, not adding more paving.
Councilmember Buckshnis thanked staff for the amendments in the CFP/CIP. She referred to the railroad
track related project for $141,504 in 2019 and asked if that was the emergency access, formerly the
waterfront connector. She asked if referring to it as Edmonds street constrained it to that location. Mr.
Williams said that project dead. Councilmember Buckshnis asked if the title should be change to emergency
access to the waterfront. Mayor Earling said there are no funds for that project so it doesn't matter.
Councilmember Buckshnis said the CFP included the community garden and wetland mitigation but there
is no funding in the CIP. Deputy Parks & Recreation Shannon Burley said there are funds allocated in Fund
126 and Fund 125.
Councilmember Buckshnis referred to DP #81 regarding Edmonds Marsh/Willow Creek Daylighting
design and construction that will be reduced to $450,000; she asked if that should be changed now or after
the budget. Mr. Williams said the numbers were not changed as it was subject to the Council's discussion
and decision tonight. Councilmember Buckshnis questioned why the CFP/CIP was approved before the
budget and asked if the numbers in the CFP/CIP should be changed after the budget was approved. Mr.
Williams said if a majority of the Council wanted to change the number or the year, that can be done. As
he understood Councilmember Buckshnis' correspondence today, it was a recommendation to remove DP
#80 and substitute a new decision package to change the total funds in 2020 and the source. He suggested
it would be better to make the decision here and it can be reflected in the budget.
COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, ON
PAGE 176, THE EDMONDS MARSH WILLOW CREEK DAYLIGHTING DESIGN AND
CONSTRUCTION, DECISION PACKAGE #81, THERE IS A NEW DECISION NUMBER THAT
SCOTT WILL GIVE US, AND THE AMOUNT WILL BE $450,000 AND SHE CAN EXPLAIN
DURING THE BUDGET AMENDMENT PROCESS WHERE THE FUND ARE COMING FROM.
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December 3, 2019
Page 19
Council President Fraley-Monillas asked what reducing it meant. Mr. Williams said he was not
recommending that. As staff sees it, this is a really big project that will require significant match before it
will ever be completed. He did not see any problem with the recommended funding in the 2020 budget and
if the new Council, Mayor and administration reach agreement on pursuing a portion of the project design
or other projects that are supportive of the marsh restoration, a contract and scope would be brought back
to the Council for approval and public comment and the budget would contain the funds to move ahead. If
that doesn't happen, the funds would be carried over into 2021 which would provide a bigger pot of money
to attract grants and provide more matching funds. He was uncertain why the funding in 2020 needed to be
reduced.
If the funds were reduced, Council President Fraley-Monillas asked what happened to those funds, did they
return to the General Fund. Mr. Williams answered they would stay in the Stormwater Fund; the $750,000
proposed for 2020 was to come from the Stormwater Utility. Much of the project is related to stormwater
and that is a source of funds that can provide match to future grants. The General Fund's ability to provide
funds for a match for a project of this size is not good. Having the stormwater utility be a partner is logical
and should be welcomed. None of the funds will be spent on anything the Council does not want to do.
Council President Fraley-Monillas relayed her understanding the funds were currently in the Stormwater
Fund. Mr. Williams agreed, the recommendation was to move a portion into a specific project, the Marsh
Estuary Restoration. Council President Fraley-Monillas asked for confirmation that staff would come back
to Council for authorization before moving forward with a project. Mr. Williams said he was committed to
doing that; he understood any spending was a sensitive issue and something the public was very interested
in. No one wants to design something that was not the right answer. The City needs to work with the current
and future property owner, WSDOT, to determine a way to move forward and have funds in the budget to
seize that opportunity. He was concerned it could take a couple years for permitting and design for a project
of this size; having funds available to react quickly to seize an opportunity seems best. Orca recovery and
Chinook salmon are reaching a critical point so it is better do something sooner than later.
Council President Fraley-Monillas reiterated staff was committed to not spending any money from the fund
without Council approval. Mr. Williams answered absolutely, it would have to have Council approval.
Councilmember Tibbott said in theory he supported the amendment to reduce the funding to $450,000 and
have the remaining funds managed in the Stormwater Fund. He asked about the change in the title from
design to restoration. Mr. Williams said the word design is important because design and permitting is the
next phase; the grant the City received specifically asked for assistance with design. He hated to remove
the word design from the match, but even if it says design, no design would be done on the project unless
a project is presented to Council and the Council and the public agree it is the right project. In the meantime
the funds will be available when the time comes for design.
Councilmember Johnson inquired about open space funds, recalling due to the waterfront project, those
funds were removed in 2020 and 2021. Ms. Burley answered $300,000 is allocated in the CIP from Fund
126 this year and $200,000 every subsequent year.
Councilmember Buckshnis commented the $450,000 is already a match; the reason why she did not want
the $750,000 was WSDOT and the ownership issue and to allow the future administration to determine
how they wanted to proceed which was the reason there were placeholders in Funds 322, 125 and 126. She
relayed Mr. James' comment that three Councilmember wanted to remove DP #80 because it makes a clean
audit trail. The new DP would be $450,000 to match the grant that talks about salmon recovery. When the
Council gets to the budget, she will explain how the cash is coming in.
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December 3, 2019
Page 20
Councilmember Nelson relayed his understanding that staff was opposed to removing DP #80. Mr.
Williams said if this is a year where full -fledge design cannot occur due to not having access to the site, the
one thing that can be done is set aside funding for the day when this project gets a green light. There may
be a window this year to do some design. Councilmember Nelson asked if Mr. Williams supported the
motion to move the funds around. Mr. Williams said he did not recommend it. Councilmember Nelson said
in light of Mr. Williams not recommending it and in light of the fact that this was as close as the City has
ever been to funding restoration of the marsh, he did not support the motion.
Council President Fraley-Monillas asked what WSDOT had to do with removing the $750,000. Mr.
Williams answered the project has gotten high centered in the last couple years by the Unocal cleanup.
Unocal owns the property and the cleanup has not yet concluded and because it hasn't, the property has not
yet transferred ownership to WSDOT with whom the City could negotiate for access. It is unknown how
long the cleanup will take; it is in the hands of Ecology and Unocal who are continuing to monitor the soils,
soil vapor and water quality. When it meets the standards set by the state, the escrow project is triggered
and the property changes hands to the state.
For Council President Fraley-Monillas, Councilmember Buckshnis said the reason she does not support the
decision package to begin design for the Willow Creek Daylighting was she did not agree it should be a
stormwater project worth $16.65M. An ownership issue remains with WSDOT getting control of the
property and the current design was based on a constraint with the WSDOT property so the MOU deals
with the alignment along the railroad tracks.
Council President Fraley-Monillas relayed her understanding that Councilmember Buckshnis did not want
to allocate the funds due to concerns over WSDOT's control of the property. Councilmember Buckshnis
answered yes, the property still belong to Unocal. Mr. Williams said there is no assumption on the alignment
of the daylighted channel at this point. A number of options were presented for comment; the next step
would be to sort through the comments, work with the Council and the public and if another alignment is
identified, an additional option could be developed in the interim.
Councilmember Teitzel commented there are a lot of unknowns about the property including when the
property transfer will happen or what WSDOT will do with the property once they get possession. Design
has occurred even with those unknowns and taxpayer money has been spent on designs that may change.
He supported the motion to limit funding for this decision package to $450,000 to provide a match, but hold
off on any design until there is more clarity. The money is in the Stormwater Fund and once a future City
Council gets clarity about what will happen with the property, a mid -year budget amendment could be
approved to free up additional funding. He summarized it was prudent to take the approach Councilmember
Buckshnis proposed and revise the decision package to match the $450,000 federal grant.
UPON ROLL CALL, MOTION CARRIED (4-3), COUNCILMEMBERS JOHNSON, BUCKSHNIS,
TEITZEL AND TIBBOTT VOTING YES; AND COUNCILMEMBERS NELSON AND MESAROS
AND COUNCIL PRESIDENT FRALEY-MONILLAS VOTING NO.
Following a brief recess, Mayor Earling advised Council President Fraley-Monillas and he agreed to
postpone budget amendments to a future meeting.
COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO
APPROVE THE CFP/CIP AS AMENDED. MOTION CARRIED (6-1), COUNCILMEMBER
JOHNSON VOTING NO.
3. COMPREHENSIVE PLAN AMENDMENT/HOUSING
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December 3, 2019
Page 21
Development Services Director Shane Hope relayed there are two amendments, 1) replace language in the
Housing Element about completing the housing strategy by the end of 2019 with language to provide
housing policy options by the end of 2020 for Council consideration. The ordinance includes amending the
Comprehensive Plan to include the CFP.
COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER
TEITZEL, TO ADOPT ORDINANCE NO. 4166, THE COMPREHENSIVE PLAN
AMENDMENT/HOUSING.
City Attorney Jeff Taraday clarified the ordinance in the packet references Exhibit A which is not attached
to the ordinance. Exhibit A is the CFP that the Council approved in the previous agenda item. Staff will
attach it as Exhibit A to the ordinance.
MOTION CARRIED UNANIMOUSLY.
4. BUDGET AMENDMENT TO FUND 2020 COUNCIL RETREAT TRAINING
Council President Fraley-Monillas explained due there being four new Councilmembers and the need for
immediate training, she set up a basic Council retreat. She spoke with the directors things it would be
important for the Council to learn at the retreat as well as spoke with about half the Council about what
they viewed as important to include in a retreat. The retreat is scheduled on February 7 and will include
instruction on basics such as how to make motions, the difference between an ordinance and a resolution,
etc.; Roberts Rules of Order; and training on public records. The cost of the retreat including meals and
supplies is estimated to be $4500.
COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER
BUCKSHNIS, TO AMEND THE BUDGET TO FUND THE 2020 COUNCIL RETREAT TRAINING
FROM THE 2020 COUNCIL CONTINGENCY.
Finance Director Scott James relayed the request was for Council to approve this amendment so contracts
can be signed but the bills will not be paid until 2020.
Councilmember Teitzel said the timing is unusual because the current Council President is scheduling
training for a future Council and traditionally the presiding Council President makes decisions regarding a
retreat. Much of this training is available from AWC; he attended similar training during the first quarter
of his first term and the cost was far less. He asked why it was appropriate to make this decision for a future
Council President. Council President Fraley-Monillas said the new Councilmembers are going to the AWC
training for new electeds this weekend, but it is much simpler. She agreed the timing was awkward, but she
did not think it mattered who the Council President was next year; the new Councilmembers need to be
trained. In her opinion, some of the problems encountered in the last few years have been due to inadequate
training provided to Councilmembers. The reason the training is February 7' is she hoped the remaining
Councilmember would have been appointed by then. The Mayor and staff will also be invited. She
summarized the timing was not the best but it was the best that could be done considering this would be the
most new Councilmembers the City had ever had.
Councilmember Buckshnis asked why 2019 Council Contingency Funds were not being used. Mr. James
said the intent was to get approval to sign the contracts with the providers but the services will not be
provided until 2020.
Councilmember Buckshnis asked Mr. James if he was part of the selection process. Mr. James said he was
not. Councilmember Buckshnis asked what contractors were selected. Council President Fraley-Monillas
advised Phyllis Shulman for the basic training, Ann McFarland for the parliamentary procedures, Patricia
Edmonds City Council Approved Minutes
December 3, 2019
Page 22
Taraday for public records and Mr. James regarding the basics of finance. Councilmember Buckshnis
preferred to use the 2019 Council Contingency. Council President Fraley-Monillas said it could be rolled
from 2019 into 2020. Mr. James said the Council Contingency has budget for this type of thing in the 2020
budget and there was always the option of a budget amendment.
COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS TO
EXTEND THE MEETING TO 10:15 P.M. MOTION CARRIED (6-1) COUNCILMEMBER
JOHNSON VOTING NO.
Councilmember Mesaros commented this was a really good idea. To Councilmember Teitzel, he did not
see this as retreat, it was training and education. He hoped the future Council President would set aside time
for a retreat to consider legislative priorities Councilmembers would like to accomplish.
MOTION CARRIED UNANIMOUSLY.
5. FOURTH QUARTER 2019 BUDGET AMENDMENT
Finance Director Scott James reviewed:
• The 4th Quarter Budget Amendment starts on page 305 in the Council Packet
• 6 Decision Packages totaling $384,917 in new expenditures and $3,916,944 in new revenues
• Overall Fund Balance increased by $3,532,027
■ Decision Packages
o DPI - $132,800 Benefits Amendment
■ Funds VEBA contributions and the state required paid family medical leave benefit
payments
o DP2 - $4,757 Public Defense
■ The Snohomish County Public Defenders Association has experienced higher caseloads
that require Edmonds to pay for the additional services
o DP3 - $10,216 — Memorial Benches
■ These funds will be used to purchase four memorial benches
■ This budget request is 100% funded by private contributions
o DP4 - $8,200 — Firemen's Pension Fund
■ Firemen's Pension fund has been seeing higher premium benefit costs and pension
payments than we had anticipated
o DP5 - $143,000 — 76" Ave/212t" Intersection Improvements
■ Will pay the final payment to the contractor for worked perf6rmed on this project
o DP6 — Civic Park Bonds - $85,944 Issuance cost
■ Earlier this year, Council approved the issuance of bonds to help pay for the construction
of Civic Park
■ The AAA rated bonds generated $3,485,000 in bond proceed revenue, $300,944 in bond
premium revenue.
Summary
o Revenues are Increased by $3,916,944
o Expenditures are Increased by $384,917
o Ending Fund Balance is Increased by $3,532,027
COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO
APPROVE THE FOURTH QUARTER BUDGET AMENDMENT, ORDINANCE NO. 4167.
MOTION CARRIED UNANIMOUSLY.
10. UNFINISHED BUSINESS
Edmonds City Council Approved Minutes
December 3, 2019
Page 23
1. DELIBERATION AND ADOPTION OF THE 2020 CITY BUDGET
Due to the late hour, this item was postponed to a future meeting.
11. MAYOR'S COMMENTS
Mayor Earling reported the tree lighting was a tremendous success. He visited Vancouver BC over the
weekend and experienced a five hour wait at the border returning to the United States. He announced the
holiday market is starting this weekend.
12. COUNCIL COMMENTS
Councilmember Teitzel said Go Hawks.
13. CONVENE IN EXECUTIVE SESSION REGARDING PENDING OR POTENTIAL LITIGATION
PER RC W 42.30.110(1)(i)
This item was not needed.
14. RECONVENE IN OPEN SESSION. POTENTIAL ACTION AS A RESULT OF MEETING IN
EXECUTIVE SESSION
This item was not needed.
15. ADJOURN
With no further business, the Council meeting was adjourned at 10:08 p.m.
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December 3, 2019
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