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20191210 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES December 10, 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 Jessica Neil] Hoyson, HR Director Shannon Burley, Deputy Parks & Recreation Dir, Rob English, City Engineer Mike DeLilla, Senior Utilities Engineer Maureen Judge, Council Legislative/Exec. Asst. 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 t Avenue North, Edmonds. The meeting was opened with the flag salute. 2. LAND ACKNOWLEDGEMENT Councilmember Tibbott 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 MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. 5. PRESENTATIONS 1. RESOLUTIONS OF APPRECIATION - COUNCILMEMBERS NELSON, TEITZEL, MESAROS, TIBBOTT AND MAYOR EARLING Edmonds City Council Approved Minutes December 10, 2019 Page 1 Council President Fraley-Monillas read and presented resolutions of appreciation to Councilmembers Nelson, Teitzel, Mesaros, and Tibbott and Mayor Earling recognizing their dedication and service. Following a brief recess, Mayor Earling advised during the budget agenda item, Finance Director Scott James will introduce the amendments and with minimal discussion, Councilmembers will make motions regarding the amendments. 6. APPROVAL OF CONSENT AGENDA ITEMS Mayor Earling relayed a member of the Lodging Tax Advisory Committee passed away recently and he selected Robert Wade, Harbor Inn, to fill that position through the end of the year and next year. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: 1. APPROVAL OF COUNCIL MEETING MINUTES OF NOVEMBER 26, 2019 2. APPROVAL OF COUNCIL SPECIAL MEETING MINUTES OF DECEMBER 3, 2019 3. APPROVAL OF COUNCIL MEETING MINUTES OF DECEMBER 3, 2019 4. APPROVAL OF CLAIM, PAYROLL AND BENEFIT CHECKS, DIRECT DEPOSIT AND WIRE PAYMENTS 5. 2019 BOARD & COMMISSION RETIREMENTS 6. 2020 BOARD & COMMISSION REAPPOINTMENTS 7. SURPLUS CITY COMPUTERS 8. RESOLUTIONS OF APPRECIATION -COUNCILMEMBERS NELSON, TEITZEL, MESAROS, TIBBOTT AND MAYOR EARLING 9. PUBLIC DEFENSE CONTRACT EXTENSION 7. AUDIENCE COMMENTS Heather Damron, Edmonds, urged the Council to keep the human services manager position in the 2020 budget. She referred to a recent post on the Edmonds Moms Facebook page from someone looking for help to pay her PUD bill along with many others asking for help with the holidays and paying garbage and water bills. Often life circumstances snowball to the point where people cannot catch up. Sadly many in the community are 1-2 paychecks, a medical emergency or a family tragedy away from being unhoused. She envisioned the human services manager as a one -stop -shop for people to put together a workable plan of action; someone who knows the ins and outs of where to apply for assistance, find affordable childcare, food assistance, negotiate utility payments; find no or low cost medical, dental or mental health care; and provide referrals to legal assistance, etc. Often a person in crisis does not have the bandwidth to research, make calls and fill out paperwork and may give up, making things worse. This would not be a person that hands out money, but a person to help guide people through challenges, strengthen the human connection and be a touchstone in the community. The Koenig report found there were 230 unhoused persons in Edmonds. This is a chance to make sure that number doesn't grow, a chance to be proactive rather than reactive to give people tools to help themselves, and to lift up citizens. This is what local government should be doing; Edmonds one of the only local municipalities not providing this service. It can't be left to churches Edmonds City Council Approved Minutes December 10, 2019 Page 2 or other municipalities to handle; the City needs to take action to take care of its citizens and a human services manager would be a great step toward that goal. Alena Nelson-Vietmeier, Edmonds, expressed support for the proposed human services coordinator position. She shared her personal story, an Edmonds resident who is housing insecure; she and her daughter are homeless as defined by the McKinney-Vento Homeless Children Act. She has over six years in recovery from a four year opioid addiction, recently completed her Bachelor of Applied Science in child, youth and family studies with an interdisciplinary focus on social justice. A single mom, she works full time at a job that pays less than $15/hour and with her next raise in January, she will earn $70/month more and will lose her last state benefit, childcare assistance. She has firsthand experience with drowning while trying to access resources in Snohomish County. She cited the importance of a knowledgeable and respectful person who can help access resources in a time of crisis. People often access community resources when they are at their most vulnerable and the ability to access help in an efficient way can mean the difference between success and failure. A human services coordinator should be a person who has a deep knowledge of resources available in the community, connections with those resources and knowledge of how to access them. This person should be able to direct people to resources for senior services, veteran resources, homelessness, disabilities, housing insecurity, utilities, food, postpartum support, mental health services, etc. She acknowledged this one part-time person cannot solve the entire community's problems but without this position, community members will continue to struggle to navigate a complex system of resources on their own. The added bonus of this position is it also provide City government information about what resources people are trying to access so City funds can be used in thoughtful ways. The City can continue to throw good money at bad solutions to real problems or preplan with thoughtful, efficient and research - based community work. Mindy Woods, Edmonds, urged the Council to keep the human services coordinator position in the budget. As she shared previously, when she and her son became homeless and lost all their belongings due to black mold, the only place she knew to call was a local YWCA shelter because she had worked there previously and had no idea where else to call for services. When people are in crisis, they are stressed and cannot think clearly or calmly and their health is negatively impacted. Many aging residents aren't tech savvy and low income people often do not have easy access to the internet which makes it difficult to find services and often do not have family members in the area. She gets calls weekly asking for help finding housing for a homeless disabled person, rental assistance, assistance with filling out applications, medical, food, childcare and mental health or paying utility bills. With the aging population, rising rents and so many people hanging on by a thread, there needs to be a City employee dedicated to helping them through these crises. It is good for the community and the City is healthy and stronger when assistance can be provided to people in need to help stabilize them. Laura Johnson, Edmonds, voiced her support for the human services coordinator position. The budget describes the position to promote individual community well-being by increasing self-sufficiency, reducing the negative impact of adverse life events, and helping people achieve their full potential; provide coordination across departments in response to human service needs and serve as a clearing house for community information and resources and work in tandem with the police department social service worker. The position is a preventative measure to help those in crisis. She relayed her experience with a 3 -year health crisis with her daughter, a full-time effort for her due to doctor appointments, research, and traveling to Minnesota to get her daughter the help she needed. It stressed relationships, finances and her family's health even though they had the resources and supportive services, including adequate finances, a flexible job and a stable homelife. Take one of those resources away, and they would not be in the same position today. As the three previous speakers stated, there are plenty of Edmonds residents who are struggling. The human services coordinator is a preventative position to support neighbors in crisis. In researching other cities that provide these services, they describe the position as developing and maintaining relationships with public and private agencies, support in times of personal and family crisis, residents are allowed to contribute directly to a human services fund, pursue grants, strengthen community relationships and Edmonds City Council Approved Minutes December 10, 2019 Page 3 develop and maintain a directory of community resources. She referred to a City of Renton brochure describing resources available in the community and summarized the City needs to provide this service to its residents. 8. ACTION ITEMS 1. DELIBERATION AND ADOPTION OF THE 2020 CITY BUDGET Mayor Earling suggested Councilmembers avoid protracted discussions about each amendment, and make a motion and vote on each amendment. Finance Director Scott James introduced the first amendment, a combination of a Council and staff amendment: 1. DP #2: Correct Half-time Human Services Coordinator Costs - $21,036 (Staff amendment 1. DP #1: Remove New Half-time Human Services Coordinator - $63,814 (Council amendment] Councilmember Teitzel commented this is a delicate and difficult decision because there is clearly a need to support the vulnerable in the community; at the same time, the City if facing a very bloated budget, $131M in expenses which requires the City be careful about adding ongoing costs in the form of additional head count. He read a statement into the record: There is no question that our community has pressing human services needs and there is an ongoing need to connect vulnerable citizens to appropriate resources. The question is, when we are dealing this evening with a record City expenditure budget for 2020 of over $131M whether we should ask our taxpayers to underwrite a new and ongoing human service coordinator staff position or whether other means already exist to meet this need. The narrative for DP #2 before us this evening states the new taxpayer -funded human services coordinator will "serve as a clearinghouse for community information and resources" and "will connect those in need with the appropriate human service organizations." These are critical services to those in need and certainly should be provided. However, there is no mention in this decision package that Verdant, which is funded in part by Edmonds taxpayers, already provides these services to those in need through its 211 helpline and its full-time community resource manager. These Verdant -provided services are now available to all residents within the hospital district, including those living in Edmonds. Briefly, the 211 resource connects those in crisis with the following services: • Basic Human Needs Resources — including food, clothing, shelters, housing and utility assistance • Mental Health and Health Resources — including counseling, support groups and drug and alcohol treatment • Older Adults and Persons with Disabilities — including adult day care, community meals, respite care, home health care, transportation and homemaker services ■ Children, Youth and Family Support — including childcare, afterschool programs, educational programs for low income families, family resource centers and protective services In addition, Verdant's full-time community resource manager is available to meet one-on-one with community members (including Edmonds residents) who need information and referrals to health, human service, and basic need programs. In terms of actual data, just last month the Verdant 211 helpline received 63 calls from callers in Edmonds zip codes 98020 and 98026 and provided help connecting the callers to resources for financial assistance with rent, utility payments, finding affordable housing, legal referrals, clothing and homeless shelters. The community resource manager met with two Edmonds residents to provide help with eviction prevention and utility bills. Clearly, Edmond residents are now finding and using the Verdant - provided services to keep help for human service needs. Edmonds City Council Approved Minutes December 10, 2019 Page 4 Before Council agrees to devote taxpayer funds to support an ongoing human services staff position, additional analysis is needed to determine whether this position may be duplicative with services Verdant provides to Edmonds citizens and how our City may be able to work more closely with Verdant and other entities in a collaborative fashion to better rneet the human services needs of our citizens. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO APPROVE COUNCIL AMENDMENT #1, REMOVING THE NEW HALF-TIME HUMAN SERVICES COORDINATOR. Council President Fraley-Monillas encouraged Councilmembers not to support the motion. She explained Verdant has 1 FTE for 4-5 cities, they do not contribute specifically to Edmonds. Verdant does not get grants, their job is to work on the 211 line telling people where to find services. She foresees the human services coordinator providing assistance directly to Edmonds residents. The main thing the position will do is coordinate services in South Snohomish County such write, prepare and administer grants; invoice grants; research best practices in other cities; provide links to websites; etc. Part of the reason citizens have not used Verdant as much is because Verdant manages a certain sort of people. For example, if someone who is financially stable called Verdant seeking assistance that is not what Verdant does. Verdant is located in Lynnwood, and the Lynnwood City Council commits $100,000 toward human services. She encouraged the Council not to support the motion, particularly since it is a pittance of money in a huge budget. Councilmember Nelson said he will vote against the motion because he supports the creation of the position. Councilmembers have the authority to protect the health, safety and general welfare of citizens, the fortunate and the less fortunate, and those that have the means are not the only ones that have meaning in the community. Meeting basic needs, improving mental health, preventing family crisis, protecting child welfare are not the sole responsibility of non -profits, charities or faith -based organizations. The City Council has a duty to represent all citizens. City government has historically forgotten those who are struggling for too long. He appreciated Council President Fraley-Monillas, the administration and staff for taking this first step in creating this human services position; it is not just what we value as a community, it's who we value. UPON ROLL CALL, MOTION FAILED (2-5), COUNCILMEMBERS TEITZEL AND TIBBOTT VOTING YES; AND COUNCIL PRESIDENT FRALEY-MONILLAS AND COUNCILMEMBERS JOHNSON, NELSON, BUCKSHNIS AND MESAROS VOTING NO. Finance Director Scott James introduced the remaining staff amendments: 2. DP #35: Adiust Purchase of Trolley & Operation of Service - ($5.000) Mr. James explained although it is anticipated partners will provide additional funding for the trolley; however, the commitments at this time are less than originally budgeted. The amendment increases the cost to the City by $5,000. COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE DP #35. Councilmember Teitzel commented the trolley is very fun and the holiday trolley is very popular. However, the 2020 budget is very bloated with expenses and the trolley adds to that. He supported the idea of a trolley but was concerned this may not be the right time; it is a want rather than a need. Partners have indicated they will assist with funding ongoing operation and maintenance expenses; he assumed that would occur in the future so he recommended deferring the purchase of the trolley. MOTION CARRIED (6-1) COUNCILMEMBER TEITZEL VOTING NO. Edmonds City Council Approved Minutes December 10, 2019 Page 5 3. DP #86: Remove DP for Stormwater Comprehensive Plan - S152,500 Mr. James relayed staff's indication that the Stormwater Comprehensive Plan could be delayed to 2021. COUNCILMEMBER MESAROS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO APPROVAL THE REMOVAL OF DECISION PACKAGE #86. MOTION CARRIED UNANIMOUSLY. 4. DP #92: Reduce Re uest from $635,000 to $135,000 - $500,000 COUNCILMEMBER TIBBOTT MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO APPROVE THE AMENDMENT, REDUCING DECISION PACKAGE #92. MOTION CARRIED UNANIMOUSLY. 5. Page 957: Add $2,500 for Students Saving Salmon, total $5000 - ($2,500) (Staff amendment) 10. Pae #57: Add $7,500 for Students Savin2s Salmon to total $12,500 — ($7,500) Council amendment) Mr. James said the budget currently includes $2,500. Staff proposed increasing that by $2,500 to $5,000 and Councilmember Buckshnis has proposed an additional $7,500 bringing the total budget to $12,500. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO APPROVE THE AMENDMENT, ADDING $10,000 FOR STUDENTS SAVING SALMON. MOTION CARRIED UNANIMOUSLY. 6. New: Add PUD Green Power Program — ($30,000) COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO APPROVE THE AMENDMENT, ADDING $30,000 FOR THE PUD GREEN POWER PROGRAM. Councilmember Tibbott asked what the program entails and how it fits with the resolution. Development Services Director Shane Hope explained the City previously participated in a pilot program to provide credits for fuel sources that were not fully green according to the state's definition and the Bonneville Power Administration's calculations, using other resources that are not part of the otherwise standard mix. In 2020 Snohomish County PUD will use the state's new formula which changes the way carbon fuels are calculated. Due to that recalculation, the amount of credit the City would pay to be considered carbon neutral under the state's program has increased. Councilmember Tibbott relayed his understanding that in order to reach the 100% renewable energy goal in the resolution, the City is paying $30,000 to some entity to offset the carbon footprint. Ms. Hope said it was always anticipated there would be some level of payment; the resolution also addresses other issues. Councilmember Tibbott said this is the method for attaining the 100% renewable energy goal. Ms. Hope answered yes, for that portion. Councilmember Tibbott asked if opportunities to use funds inside the City had been explored instead of sending them elsewhere. Ms. Hope answered yes, solar cells at the Frances Anderson Center, energy savings for vehicle and equipment fuel, improvements at the wastewater treatment plant, etc. Councilmember Tibbott asked if there were ways to invest within the City to provide the offsetting amount. Ms. Hope said that will continue to be explored. The resolution also calls for a strategy and timeline for things to be done which the Climate Protection Committee is working on as well as renewing/revising the climate action plan to address the City's carbon footprint. She summarized this is one way but certainly should not be the exclusive way. Edmonds City Council Approved Minutes December 10, 2019 Page 6 Councilmember Mesaros observed the parenthesizes around the dollar amount means it increases the budget. Mr. James agreed. MOTION CARRIED UNANIMOUSLY. Finance Director Scott James introduced Council amendments: 2. DP #10: Move Health District Contribution to Opioid Response Fund - $0 Councilmember Teitzel commented the opioid crisis is very real in Snohomish County and in Edmonds. Addressing it was one of the Council's priorities and one way to do that is to fund the Snohomish Health District because opioid abuse is also one of their priorities. To the extent the City can fund the Snohomish Health District as they combat that problem, will directly affect Edmonds' citizens' wellbeing. The City set aside funds in an Opioid Response Fund; his proposal is to use funds from that source to contribute to the Snohomish Health District to combat opioid abuse as there is a direct nexus. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCIL PRESIDENT FRALEY- MONILLAS, TO MOVE HEALTH DISTRICT CONTRIBUTION TO OPIOID RESPONSE FUND. Councilmember Buckshnis asked if the Opioid Response Fund was down to $50,000. Mr. James answered it was. She asked if the proposal was to take $21,555 from the Opioid Response Fund and reduce the amount from the General Fund by that amount. Mr. James answered there is already $0.50/capita in the budget; this would increase it to $1.00/capita, another approximately $21,000. Councilmember Buckshnis observed the zero impact is due to moving funds from one fund to another. MOTION CARRIED UNANIMOUSLY. 3. DP #13: Remove Contribution to Edmonds Center for the Arts - $75,000 Councilmember Johnson said one of the Council's priorities was to expand the arts for economic development and the key feature was the 0' Avenue Arts Corridor. Rather than doing many small projects, she preferred to focus money and attention on the arts corridor. The City could contribute $75,000 to the ECA but it would be better for the ECA in the short and long term to institute planning for the 0 Avenue Arts Corridor. She recommended not making a contribution to the ECA and instead using those funds and other similar funds to enhance the 4th Avenue Arts Corridor. COUNCILMEMBER JOHNSON MOVED TO REMOVE CONTRIBUTION TO EDMONDS CENTER FOR THE ARTS. MOTION DIED FOR LACK OF A SECOND. 5. DP #30: Remove Federal Lobbyist - $72,000 COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER JOHNSON, TO REMOVE THE FEDERAL LOBBYIST IN THE AMOUNT OF $72,000. Councilmember Buckshnis said she did not like placeholders in the budget. She preferred the new mayor can go to Washington DC and find a lobbyist and the funding can be approved as an amendment. UPON ROLL CALL, MOTION CARRIED (5-2), COUNCIL PRESIDENT FRALEY-MONILLAS AND COUNCILMEMBERS JOHNSON, BUCKSHNIS, TEITZEL AND TIBBOTT VOTING YES; AND COUNCILMEMBERS NELSON AND MESAROS VOTING NO. 6. DP #33: Remove Commuuit Surve - $25,00 Edmonds City Council Approved Minutes December 10, 2019 Page 7 COUNCILMEMBER JOHNSON MOVED TO ELIMINATE DECISION PACKAGE #33 IN THE AMOUNT OF $25,000. MOTION DIED FOR LACK OF A SECOND. 7. DP #37: Remove Downtown Wayfaring Signs - S25,000 COUNCILMEMBER JOHNSON MOVED REMOVE FUNDING FOR DOWNTOWN WAYFARING SIGNS. MOTION DIED FOR LACK OF A SECOND. 8. DP #51: Remove Public Art at the Library - $62,000 COUNCILMEMBER JOHNSON MOVED TO REMOVE FUNDING FOR PUBLIC ART AT THE LIBRARY. MOTION DIED FOR LACK OF A SECOND. 11. DP #80: Remove Willow Creek Da li htin Design - S750,000 Councilmember Teitzel said this amendment was submitted before he knew the federal government provided a $450,000 grant that required an equal local match. He proposed continuing with the removal of $750,000 and additional funds would be added in a companion amendment (#13) that would restore $450,000 for matching funds. COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE THE AMENDMENT, KNOWING THAT A COMPANION AMENDMENT TO RESTORE THE FUNDING WILL BE PROPOSED BY COUNCILMEMBER BUCKSHNIS. MOTION CARRIED UNANIMOUSLY. 13. New: Marsh Restoration Includes Use of $250,000 Marsh Reserve — ($450,0001 Mr. James explained the motion was to add $450,000 for marsh restoration; $250,000 would come from the $1.3M Marsh Reserve and $200,000 from the Stormwater Fund. Councilmember Buckshnis explained the total set aside for the marsh would now be $1.5M plus the $450,000 grant. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO APPROVE THE AMENDMENT. MOTION CARRIED UNANIMOUSLY. 16. New: Add Full-time Arborist, Truck & Equipment -($79,715) Councilmember Buckshnis explained the amount represents the difference between the current 10 -hour arborist and a full-time arborist and funding that employee's replacement. She advised the truck and equipment already exist. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO APPROVE THE AMENDMENT. Councilmember Teitzel pointed out the amendment specifies a truck. It was his understanding the truck already exists and no additional investment is required. MOTION CARRIED (6-1), COUNCILMEMBER MESAROS VOTING NO. 17. New: Add Non -Represented Employee SaIaEj Stud - ($40,000 Edmonds City Council Approved Minutes December 10, 2019 Page 8 Councilmember Mesaros recalled Council discussion about Non -Represented employee salaries. In consultation with the HR Director, he recommended the amount be reduced to $30,000. COUNCILMEMBER MESAROS MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO ADD A NON -REPRESENTED EMPLOYEE SALARY STUDY IN THE AMOUNT OF $30,000 IN 2020. Councilmember Johnson asked Human Resources Director Neill-Hoyson whether this was something she could do or if a study was necessary. Ms. Neill-Hoyson answered a compensation analysis is within the HR department's scope of abilities. Councilmember Johnson asked if she would have the time and ability to do that analysis next year. Ms. Neill-Hoyson answered she would need to analyze that; there are two labor contracts open to bargaining next year. There are approximately 50 non -represented positions; potentially the HR department would have capacity but because she was new to the position, it was difficult to estimate the usual amount of work in the department along with the two contracts that will be open to bargaining next year. Council President Fraley-Monillas recalled in speaking with Ms. Neill-Hoyson, she mentioned a certain year it would need to be done. Ms. Neill-Hoyson answered the current compensation policy for Non - Represented employees states a compensation analysis/salary survey is done every three years. The last one was done in 2018 to be effective in 2019. To stay on cycle, the next one would be done in 2021 to be effective in 2022. Council President Fraley-Monillas asked what she would do with the funding if it were provided now, whether she would hold it for a year. Councilmember Mesaros recalled during the study done last year, there was discussion by the Council whether the HR department was biased. The intent was to do the study, look at all non -represented employees because there was some debate about director and non -director salaries. An independent analysis would provide that data and even if it is an off year, determine whether the City pays employees fairly. Council President Fraley-Monillas said she was not disputing the salary study but when it would be done. Ms. Neill-Hoyson said she would need to look at the results of last comp study and see what was and was not implemented to determine what needed to be addressed out of cycle. Councilmember Teitzel said since Ms. Neill-Hoyson's position is a Non -Represented position and a study such as this would include her position, there may be concern about a conflict of interest. If HR took on the task of the study, he asked if the human resources director position could be contracted out in isolation and she review the other positions. Mr. Neill-Hoyson answered the City Council could choose to do that. Councilmember Buckshnis commented the policy needs to be updated before a study is done. The issue is whether a new step can be created, whether funds can be contributed to a retirement account, etc. She recalled Ms. Neill-Hoyson saying she could provide Kitsap's policies as templates. She supported the study if Neill-Hoyson felt it was necessary. She did not support creating new steps when the study provided for six steps. She asked Neill-Hoyson if she would have time to update the policies first prior to the study, noting the study could not be done without adequate policies. Ms. Neill-Hoyson answered without a clear compensation philosophy and policies to support that, clear direction cannot be given to either internal staff or external consultants. The compensation policies would need to be reviewed and a City Council compensation philosophy established. There is a policy in place but she believed it was missing some factors that are important to compensation. Mayor Earling suggested the Council get past the idea that there is a conflict of interest when a professional was in charge of doing something. There may be perceived bias, but he assured the City has a group of professionals who take their jobs seriously and urged the Council to get rid of the idea that there was any built-in bias. Edmonds City Council Approved Minutes December 10, 2019 Page 9 UPON ROLL CALL, MOTION CARRIED (5-2), COUNCIL PRESIDENT FRALEY-MONILLAS AND COUNCILMEMBERS NELSON, BUCKSHNIS, MESAROS, AND TEITZEL VOTING YES; AND COUNCILMEMBERS JOHNSON AND TIBBOTT VOTING NO. 18. New: Add Contribution Su )ort for Edmonds Chamber - ($10,000) COUNCILMEMBER MESAROS MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO APPROVE THE AMENDMENT, ADDING CONTRIBUTION SUPPORT FOR THE EDMONDS CHAMBER IN THE AMOUNT OF $10,000. Councilmember Mesaros explained the reason for this amendment was to thank the Chamber for all the good things they do for the City. They bring a tremendous number of people downtown who, as a result of the Chamber's work, have a very favorable view of the City and he wanted to see that continue. This is a modest amount but affirms what the Chamber is doing and sends a message to the Chamber members. MOTION CARRIED (6-1), COUNCILMEMBER JOHNSON VOTING NO. 19. New: Add Bud et for Consultant to Review Uses of All City Rental Space - ($15,000) Councilmember Johnson explained this was supposed to be an assessment of all the Parks & Recreation facilities. For example, the Boys & Girls Club currently rents the old fieldhouse for $1/year and their lease is up in a year. There are also leases at 3-4 other facilities throughout the City. It is time to do an analysis of what people need the space for and whether the spaces meet their needs. That information would be useful to new the Parks & Recreation Director and help make decisions regarding the use of the field house, the Dayton Street facility, Meadowdale Clubhouse and Frances Anderson Center. COUNCILMEMBER JOHNSON MOVED, SECONDED BY COUNCIL PRESIDENT FRALEY- MONILLAS, TO ADD BUDGET FOR CONSULTANT TO REVIEW PARKS & RECREATION RENTAL FACILITIES. Councilmember Buckshnis asked how the amount was determined. Councilmember Johnson said it was the result of a conversation with Mr. James. Mr. James said Councilmember Johnson and he discussed a cost from $20,000 to $40,000; it is up to Council to determine how much to spend and the depth of the study. He said he has no experience with the cost of such a study. Councilmember Buckshnis observed the intent was to ensure the Parks & Recreation rental spaces were being fairly charged. Councilmember Johnson said it was not so much cost but the space and the requirement needs. For example, a ballet company rents the third floor of the Frances Anderson Center; a study could determine if they have enough room to do recitals. She said it was a customer survey. Mr. James suggested a policy versus a study so the Council can analyze the spaces available and develop a policy regarding how they are rented. The City rents to a variety of organizations; he questioned whether a study would look at other cities' rentals, how groups benefit from the City's facilities, etc. He summarized a policy would be a good starting point. Councilmember Buckshnis said the Edmonds Waterfront Center will be opening so it would be good to have a policy. She inquired about the addition of a part-time staff person associated with the Waterfront Center in 2020. Deputy Parks & Recreation Director Shannon Burley said a part-time person will be added to program classes at the Waterfront Center. There are several Parks & Recreation spaces that are rented out; the ballet company rents the third floor and most of the first floor at Frances Anderson Center. Space is at a premium and there are more people who want space than there is space available. She envisioned it as a subsidy study to determine if similar rates were offered to similar renters. In accordance with the current Parks & Recreation policy, the current tenants are all non -profits and are offered a very favorable rate. Edmonds City Council Approved Minutes December 10, 2019 Page 10 Councilmember Teitzel said he could see the need to get a better handle on this issue and understand what the City's clients need and ensure those needs are being met. He asked if that analysis could be done inhouse versus contracting it out. Ms. Burley said yes, and that is done each year when new leases are signed. The Boys & Girls Club is an exception as their lease is longer term. All the Frances Anderson Center tenants sign an annual lease and staff discusses their needs at that time. Councilmember Teitzel asked what incremental knowledge would be gained by this $15,000 investment. Councilmember Johnson said she has some experience with a sculptor's workshop that has been held at the Frances Anderson Center for many years. Although that space has traditionally been used, it is woefully inadequate, too small, and too hot and there may be other spaces that would be more appropriate. People are territorial about the spaces they rent, so unless the space requirements for the use are considered, the needs are unknown as people usually just take what they can get. With the Boys & Girls Club renewal coming up, there have been discussions about using that space for a Farmers Market or other purposes. She questioned whether the Boys & Girls Club wanted to continue their lease, whether they would be better off at another location and what options were available. The study would be a planning tool to help make decisions for Parks & Recreation. Since she has been on the Council (2012), Councilmember Johnson said everything has remained status quo. Ms. Burley agreed things have remained status quo with the exception of the Boys & Girls Club whose lease expires in May 2020 at which time the Boys & Girls Club must tell the City whether they plan to renew and exercise the 5 -year extension. The Boys & Girls Club has not made that decision yet. With regard to the field house, her and former Parks & Recreation Director Hite's recommendation would be to reopen the master plan for that portion of Civic Park and gather public input. She acknowledged most Frances Anderson Center tenants would say the same thing as the sculptor's workshop, they would welcome more space. Likely the current tenants do not represent the highest and best use for each program, and each one would have a modification or request for additional space including the Parks & Recreation Department who have several shared offices in a tight space. She recognized what Councilmember Johnson was trying to do and appreciated her efforts. UPON ROLL CALL, MOTION FAILED (3-4), COUNCILMEMBERS JOHNSON AND BUCKSHNIS AND COUNCIL PRESIDENT FRALEY-MONILLAS VOTING YES; AND COUNCILMEMBERS NELSON, MESAROS, TEITZEL AND TIBBOTT VOTING NO. 20. DP #40. Increase Budget for Professional Services for Code Updates - ($25.00) Councilmember Tibbott said this amendment is in tandem with the next amendment and asked about the 0.5 FTE. His intent for the $25,000 was a robust plan to address the code update but he acknowledged there were different ways to do that. He asked staff to speak to the benefits of an outside consultant with specialty skills versus an inhouse employee. Ms. Hope answered a number of code amendments have been made but there is still a lot to do. One of the challenges is not much staff time can be devoted to the code update due to other things staff is working on. A consultant who could do some of the background work and work with staff was her original proposal, being mindful of not adding staff. Consultant assistance would be very helpful; the cost of a half-time staff person would be slightly more than a consultant but would be very useful. The ideal would be a full-time staff person for 2-3 years who would focus on code amendments and updates which would cost approximately $141,000/year. The additional $25,000 added to the $25,000 in the decision package for a total of $50,000 would be useful but the $72,000 for a half-time staff person would probably be even better. She would be glad to have any of the three. Councilmember Tibbott assumed a consultant could begin work more quickly than a part-time employee. Ms. Hope agreed. She said another challenge was the difficulty finding a qualified half-time person. She recalled a similar challenge with finding a staff person to assist the Housing Commission and a consultant was subsequently hired. She suggested trying to find a staff person but hire a consultant as a fallback if a Edmonds City Council Approved Minutes December 10, 2019 Page 11 qualified candidate could not be hired. Councilmember Tibbott asked if her preference would be a half- time FTE with the fallback to hire a consultant which could be accomplished via an amendment by the future Council. Ms. Hope answered yes. If a half-time FTE was hired to work on code updates, Councilmember Tibbott asked how likely it was that that person could focus on that task versus getting swallowed up by additional work in the department. Ms. Hope said the intent would be that that person's job would focus on the code update. Councilmember Tibbott withdrew the amendment. 21. New: Add 0.5 FTE Staff Mcinber- to t1 )date the Citv's Develo pment Code - ($72,12 0 Councilmember Buckshnis relayed her belief that the City needs to hire someone to update the code and $72,000 is attractive salary. If the position works out well, they could be moved to full time because there is so much code that needs to be updated and revised and new code written related to the Urban Forest Management Program, housing, HR, etc. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCIL PRESIDENT FRALEY- MONILLAS, TO ADD 0.5 FTE STAFF MEMBER TO UPDATE THE CITY'S DEVELOPMENT CODE. Councilmember Johnson said there has been discussion about code updates since she joined the Council in 2012 and little progress has been made in those 8 years other than a chapter here or there. She asked how long it would take to update the code, what level of effort was required and how much would it cost. She was frustrated by the piecemeal approach and questioned how a plan could be implemented without knowing what we are trying to accomplish. Ms. Hope answered there is a plan although it hasn't been discussed for a while. The first thing that needs to be done is change the order of a lot of the code chapters without making specific amendments. Staff has determined the reorganization and will bring that to Council for a public process. Future changes would be made to better accommodate green energy particularly related to electric vehicles and the tree regulations and the subdivision regulations need to be done in 2020. She offered to provide Council a list of other updates. Councilmember Johnson suggested this may be a discussion for next year rather than a budget amendment, recognizing it is an important and large issue. Ms. Hope said if budget is not provided to fund any help to do the work, it will not get done. Councilmember Johnson reiterated there had not been much progress in the last eight years. The City throws money at it from time to time but she did not have a sense that there was a plan and that work was being done toward that plan. She concluded more discussion was needed on this subject. MOTION CARRIED (6-1), COUNCILMEMBER JOHNSON VOTING NO. Mr. James introduced a list of new amendments submitted by Councilmember Johnson: 1. DP #9: Civic Park Bond Pent Councilmember Johnson said this was a non -issue. 2. DP #32: Diversity Commission Staff Support Councilmember Johnson questioned the need for the Diversity Commission to have needed staff support, staff director and an assistant. Edmonds City Council Approved Minutes December 10, 2019 Page 12 COUNCILMEMBER JOHNSON MOVED TO ELIMINATE THE DIVERSITY COMMISSION STAFF SUPPORT. MOTION DIED FOR LACK OF A SECOND. 3. DP #40: Updates to City Development Code 4. DP #45: Youth Commission Coordinator Councilmember Johnson questioned the need for an ongoing youth commission coordinator position, and suggested staff could provide support for the commission without hiring a coordinator. COUNCILMEMBER JOHNSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO ELIMINATE THE YOUTH COMMISSION COORDINATOR. Councilmember Buckshnis observed there was a one-time approval of $30,000; the intent is to make that funding ongoing. Ms. Burley agreed. MOTION FAILED (1-6), COUNCILMEMBER JOHNSON VOTING YES. 5. DP 450: Parks & Ree Utility Cost Increase For Councilmember Johnson, Mr. James explained DP #50 was submitted by staff to recognize utilities greater than budgeted for Parks & Recreation. Councilmember Johnson withdrew the amendment. 6. DP #53: Gift Catalog Memorial Benches Councilmember Johnson withdrew the amendment. 7. DP #62 Seasonal Help — Street Fund Councilmember Johnson said she had not seen season help for the Street Fund or Stormwater Funds in the past. Public Works Director Phil Williams said the City used to have seasonal help in Streets and Storm. When the rules changed regarding the hours a temporary seasonal worker could work without joining the union, paying retirement, etc., seasonal help was not hired for about three years. Seasonal help would be used for vegetation management and allow higher paid employees to work on other tasks. He described work the season employees could do including weed-wacking around water meters and fire hydrants, painting hydrants, assist with cleaning catch basins, etc. The proposal is to hire two temporary employees at a cost of $6200. Councilmember Johnson withdrew the amendment. 8. DP 64: CDL Training For Councilmember Johnson, Mr. Williams said there are three vacancies to be filled; it is likely the successful candidates will not have commercial driver's licenses (CDL) which they need. In the past staff has taught them inhouse but the standards and effort required to pass the WSDOT exam continues to increase. The efficient way would be to send them to a class where they are trained by professionals. Councilmember Johnson observed this would train five employees. Mr. Williams agreed. Councilmember Johnson withdrew the amendment. Edmonds City Council Approved Minutes December 10, 2019 Page 13 9. DP 66; Seasonal Help --Storm Fund Councilmember Johnson withdrew the amendment. 10. DP 71: B -fund Replacements Councilmember Johnson asked why staff planned to retire a street sweeper a year early and the associated cost. Mr. Williams answered the street sweepers are on a 10 -year cycle which is often extended to 15 years. More often than not when preparing a schedule for a vehicle, the past history is used to guess its effective lifespan which is then monitored. Toward the last third of the lifespan, the maintenance costs are monitored closely to see when it needs to be traded in on a new one. Usually the lifespan can be extended; the funds may have already been accumulated but if the vehicle is performing well, it is retained. Sometimes that does not work which is the case with this unit so staff is requesting to replace it one year earlier. Councilmember Johnson asked if the City needed two street sweepers. Mr. Williams answered yes. Councilmember Johnson withdrew the amendment. 11. DP 81: Edmonds Marsh Feasibility — Funding for Grant Writer Councilmember Johnson asked how much is spent per grant, recalling it was $5,000. Mr. Williams answered it depends on the grant; each have different processes, amounts of paperwork, etc. This is a set aside, basically an on-call amount for Keely O'Connell's services; she is incredibly gifted at writing grants and has relationships with funders that positions the City well to receive funding. He was unable to predict how much of the budget would be consumed; there are 3-4 grants in the first 6 months of 2020 that the City can apply for, most of which would be to support the Edmonds Marsh estuary restoration activities. He acknowledged the challenge with the property issue but the City should continue to apply for grants in order to keep in front of the funding agencies. Once a grant application is prepared for a funder, much of the information can be used for a future grant. The City was successful with the National Fish & Wildlife Foundation grant and there will be others that may not focus as closely as the Recreation and Conservation Office does on the issue of control and tenure of the property. Councilmember Johnson withdrew the amendment. Other Potential Amendments Councilmember Teitzel referred to DP #65, Alderwood Water rates are projected to increase 21.8% which drives the $570,000 increase for 2020, recalling Alderwood lowered that increase in 2020. Mr. Williams said Alderwood Water lowered the increase in 2020 to 8% or about $216,000 and informed the City to plan on an 8.5% increase in 2021 and 8% in 2022. The original plan was 21.8% in 2020, 4.4% in 2021 and 5.2% in 2021. In the end, it is the same basic capital request, they have decided to collect it differently. Councilmember Teitzel asked if the amount for 2020 should be $216,000, not $570,000. Mr. Williams was uncertain $216,000 was the correct amount. Councilmember Teitzel asked which amount would be approved in the budget. Mr. Williams offered to email Councilmembers and Mr. James with the exact amount for 2020 and include it in budget. Councilmember Teitzel asked if the Council could approve a budget with a number that would be corrected later. City Attorney Jeff Taraday answered it would depend on how clear the direction is. If the City Council is expressly delegating staff to take a particular knowable figure that they will get from a third party that it has no ability to control or change, that seems like the type of thing the Council could delegate to staff to be incorporated in the budget ordinance before it is signed. He noted Exhibit A to the ordinance also needs to be amended in light of the various amendments made by Council. That is another example of post City Edmonds City Council Approved Minutes December 10, 2019 Page 14 Council meeting delegation that presumably the Council is intending to make. An option is to bring back a clean ordinance at the December 17"' meeting. Mr. Williams said the intent was to authorize sufficient spending authority for Alderwood wholesale water costs in Fund 421. Whatever water people use is what the City buys and the funds cannot be used for anything else. He estimated the amount of water at IAM cubic feet or a billion gallons of water per year. The cost is dictated by the price charged by Alderwood Water. If Alderwood lowers their cost, the City will spend less regardless of the amount authorized. Councilmember Teitzel deferred to Council President Fraley-Monillas regarding how to proceed and asked if she was comfortable delegating that correction to staff. Council President Fraley-Monillas said she was. Councilmember Johnson observed in light of the passage of I-976, the City will lose $750,000 in TBD funds, the amount spent for street maintenance salaries and benefits. She recommended making a $750,000 amendment to the budget to account for that. She acknowledged discussions regarding how this could be handled on a one-year basis while waiting for the courts to adjudicate it, but said it would be responsible to have a line item in the budget to address it. Mr. Williams explained the injunction sought by Seattle and King County was successful so the reduction in funding is in abeyance until a final court decision is issued. No funds will be lost until sometime in 2020 and may never happen depending on the court decision. He suggested monitoring and at the point a decision is imminent, making a decision to augment funding when there is a better idea about how much will be needed in 2020. He summarized it is not a crisis yet with the injunction in place. Mayor Earling said it would beneficial to leave budget alone and made adjustments if necessary based on the court decision. Such an amendment anticipates the court will rule in favor of I-976; Edmonds was the only city in Snohomish County that did not support the initiative. Councilmember Buckshnis echoed Mayor Earling's comments, preferring to monitor the situation until next year. Councilmember Johnson said she wanted to broach the subject as it is of great concern to her. The City is setting aside General Fund monies for Civic Park and she wondered how that could be done when there was a potential $750,000 deficit next year. Mayor Earling reiterated that decision will depend on the court outcome. COUNCILMEMBER JOHNSON MOVED TO INCLUDE $750,000 IN THE BUDGET FOR STREET MAINTENANCE IN LIGHT OF FUNDING LOST DUE TO THE PASSAGE OF 1-976. MOTION DIED FOR LACK OF A SECOND. Council Proposed Amendments Page # Submitter Approved? Item DP# Cash Description Increase # New Item (Decrease) 1 DP #2 Remove New Half-time Human Services $63,814 Teitzel & Failed Coordinator Johnson 2 DP #10 Move Health District contribution to Opioid $0 Teitzel Passed Response Fund Remove Contribution to Edmonds Center for the 3 DP #13 $75,000 Johnson Failed Arts 4 14inave Pumhase of new Staff Vehicle for Palme Dept - $000 johnson Withdrawn Edmonds City Council Approved Minutes December 10, 2019 Page 15 5 DP #30 Remove Federal Lobbyist $72,000 Johnson, Passed Item DP# Description Increase Buckshnis # 6 DP #33 Remove Community Survey $25,000 Johnson Failed 7 DP #37 Remove Downtown Wayfaring Signs $25,000 Johnson Failed 8 Yes 2 $60,009 Tibbe# Withdrawn 9 DP #51 Remove Public Art at the Library $62,000 Johnson Failed 10 Pa Page #57 Add $7,500 for Students Saving Salmon, total ($7,500) Buckshnis Passed # ge Add $2,500 for Students Saving Salmon, total $5000 ($2,500) $12,500 Yes 11 DP #80 Remove Willow Creek Da li htin Design $750,000 Teitzel Passed 4-2 PP #80 noa,...a nn &em $7505090 to $450,000 $300,000 Buckshnis Withdrawn 13 NEW Marsh Restoration, includes use of $250,000 Marsh ($450,000) Buckshnis Passed Total of Staff Requested Changes Reserve I-4 l X5;000 T eekshnis Withdrawn I-5 PP #8i U Moveo A.9..r,.L. an}n.-n4:..w !"'........1io..f F.�..... CT..r»n r.-. PAr-ks $8 his Withdrawn 16 New Add Full-time Arborist, Truck & Equipment $79,715 Buckshnis Passed 17 New Add Non -Represented Employee Salary Stud $30,000 Mesaros Passed 18 New Add contribution Support for Edmonds Chamber $10,000) Mesaros Passed 19 New Add Budget for Consultant to Review Uses of All ($15,000) Johnson Failed Cit Rental Space 20 DP #40 Updates ($25;00) T'ibbott Withdrawn 21 New Add 0.5 FTE staff Member to Update the City's ($72,120) Buckshnis Passed Development Code Total of Councilmember Requested Changes $172,665 Staff Proposed Amendments Page # Cash Submitter Approved? Item DP# Description Increase # New (Decrease) Item 1 DP #2 Correct Half-time Human Services Coordinator Costs $21,636 Doherty Yes 2 DP #35 Adjust Purchase of Trolley & Operation of Service ($5,000) Doherty Yes 3 DP #86 Remove DP for Stormwater Comprehensive Plan $152,500 Williams Yes 4 DP #92 Reduce request from $635,000 to $135,000 $500,000 Williams Yes 5 # ge Add $2,500 for Students Saving Salmon, total $5000 ($2,500) James Yes 6 New Add PUD Green Power Program $30,000 Hoe Yes T 4% i e for- Ptibli . Def . deF for 1 1�,.�2 ($75,644) Neill- Withdrawn #-5-7Noyson Total of Staff Requested Changes $636,636 Total of Council & Staff Amendments $809,301 COUNCILMEMBER NELSON MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO APPROVE ORDINANCE NO. 4168 ADOPTING THE 2020 BUDGET AS AMENDED TO COMMENCE JANUARY 1, 2020. Councilmember Johnson said for the first time, she will vote against the budget for the reasons she has already stated. MOTION CARRIED (6-1), COUNCILMEMBER JOHNSON VOTING NO. Mayor Earling declared a brief recess. He advised there will be a short Council meeting on December 17"'. Edmonds City Council Approved Minutes December 10, 2019 Page 16 UTILITY RATE ANALYSIS AND ADOPTION OF A UTILITY RATE ORDINANCE Mr. Williams advised staff was here to answer any additional questions or review any portion of the proposal that Councilmembers have questions about. At Mayor Earling's suggestion, he displayed the following • 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 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 Water Revenue Requirement Forecast ■ Stormwater Revenue Requirement Forecast Existin 2021 Pro osed StatusQuo: Full Cash funding for CIP 8% 2019 2020 12021 2022 Annual Water Rate Increase 5% 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 ■ Stormwater Revenue Requirement Forecast • Sewer Financial Plan Scenarios Annual Sewer Rate Increase Existing 2019 Existin 2021 Pro osed StatusQuo: Full Cash funding for CIP 8% 2019 2020 2021 2022 Annual Stormwater Rate Increase 5% 9.5% 9.5% 9.5% Monthl single-family bill $17.18 $18.81 $20.60 $22.56 Tax 1.72 1.88 2.06 2.26 Total $18.09 $20.69 $22.66 $24.82 • Sewer Financial Plan Scenarios Annual Sewer Rate Increase Existing 2019 Proposed 2020 2021 2022 StatusQuo: Full Cash funding for CIP 8% 8% 8% $1 OM WWTP Bond 5% 5% 5% $10M WWTP Bond (3% increases 2020-22) 3% 3% 3% Monthly Single Family Bill Existing Proposed 2020 2021 2022 Status Quo: Full Cash funding for CIP $48.02 $51.85 $56.00 $60.48 $1OM WWTP Bond $48.02 $50.541 $52.93 $55.58 $1OM WWTP Bond 3% increases 2020-22) 1 $48.02 1 $49.46 $50.93 1 $52.47 With regard to extending the borrowing from 20 to 30 years, Mr. Williams said there is a very small positive impact in the short term. It compromises flexibility after 20 years where the City would still be paying on the bonds but would need to borrow for the utilities for other projects that are unknown at this time. This was discussed with the City's bond advisor, Scott Bauer, Northwest Municipal Advisors, and both he and Edmonds City Council Approved Minutes December 10, 2019 Page 17 Chris Gonzales, FCS, reminded when the City does borrowing, that debt service is often wrapped around an existing bond schedule to keep the peak costs down in the early years. That would be the intent, to get the best package possible to avoid higher rates. Mr. Williams reviewed the total monthly increase (all 3 funds): Year 2020 2021 2022 Month ly 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 J $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 Councilmember Buckshnis referred to emails that stated the pyrolysis project came to Council in 2014. Mr. Williams said there were a series of ESCO projects 1-4 that did not deal with the WWTP and in about 2014, staff described ESCO projects 4, 5 and 6. Phase 4 was the improvements to the aeration system and fine level diffusion and replacing high horsepower, inefficient electrical motors with newer technology that saved a great deal of energy. Phase 5 was the new solids handling equipment, screw conveyors instead of belt filter presses to dewater solids that saved a tremendous amount of energy and maintenance. The description of Phase 6 in 2014 did not specify pyrolysis at that time, it was some level of gasification or something other than incineration. Phase 6 is now the pyrolysis project in its current form rather than gasification or a new incinerator. Councilmember Buckshnis referred to the recommendation and asked who Chris Gonzales is. Mr. Williams answered he is the consultant with FCS regarding utility rates. Councilmember Buckshnis referred to an email from Scott Bauer regarding his analysis and concern that one risk was the asset might not last 30 years either due to evolving regulatory standards or premature failure and the industry standard is limited to the term of the debt of the estimated life of the underlying assets. She asked if there was an imbalance with spending $24M on a pyrolysis project that will only last 20 years. Mr. Williams said Mr. Bauer was pointing out another potential reason one could conclude a 20 year bond period would be preferable to 30 year bond period. He envisioned the estimated 30 year life of the pyrolysis project could be realized. But what if EPA regulations throw a curve ball in 10-20 years and the City has to invest more to meet their criteria which could happen. It would be better to pay the bonds off in 20 years before making another investment versus 30 year bonds. Councilmember Buckshnis commented on the recent synthetic interest rate and recognized rates will go up. She recalled the Council looking at bond terms for Civic Park bonds. She was alarmed by Mr. Bauer's comment that it may only last 20 years when she hoped it would last longer than 20 years for a $24M expenditure. Mr. Williams said unless the regulations change, a mechanical/electrical system should last 30 years. Councilmember Mesaros commented with the $10M bond for the pyrolysis project and by increasing rates incrementally, utility customers will pay less with a 20 year bond than 30 year bonds. COUNCILMEMBER MESAROS MOVED, SECONDED BY COUNCILMEMBER TEITZEL, TO APPROVE ORDINANCE NO. 4169, INCREASING WATER RATES BY 4.5%, SEWER RATES BY 5% AND STORMWATER RATES BY 9.5% IN THE COMING YEAR. Council President Fraley-Monillas said she will vote against the increase as she views it as a regressive tax. Edmonds City Council Approved Minutes December 10, 2019 Page 18 UPON ROLL CALL, MOTION CARRIED (4-3), COUNCILMEMBERS JOHNSON, MESAROS, TEITZEL AND TIBBOTT VOTING YES; AND COUNCIL PRESIDENT FRALEY-MONILLAS AND COUNCILMEMBERS NELSON AND BUCKSHNIS VOTING NO. 3. RESOLUTION UPDATING DEVELOPMENT FEES Development Services Director Shane Hope said these are development fees related to building, planning, engineering and fire. The last major update was 2016. The proposed update will increase several fees approximately 10%, effective January 15, 2020. The Finance Committee reviewed the proposal last month and recommended forwarding it to full Council. Councilmember Tibbott asked if the 10% adjustment would occur every year. Ms. Hope answered no, increases were possible every few years. Other than minor adjustments to the fees, a major update would not be done for another three years. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO APPROVE RESOLUTION NO. 1442. MOTION CARRIED UNANIMOUSLY. 4. ORDINANCE AMENDING ECC 2.35.045 & 2.35.060 SHARED LEAVE & SICK LEAVE Human Resources Jessica Neill-Hoyson spoke to Agenda Items 4 and 5 because they go together. The resolution amends City personnel policies related to sick leave and shared leave. Washington state voters approved the Washington State Sick Leave law that went into effect in 2018. While the City has applied that law the policies were not updated to reflect the changes. The new law also impacted the City's shared leave policies. Ms. Neill-Hoyson explained the voters also passed the Washington State Paid Family & Medical Leave Act that was effective January 1, 2019. The City begin collecting premiums in 2019 and in 2020 provisions of the act allow employees to begin taking that paid leave. That law requires policies to address how to manage internal provisions. The law dictates most of what the City can do; one decision point was whether employees would be allowed to supplement the paid leave they receive from the state with their own accrued leave. She proposed allowing employees to supplement the leave with accrued leave to reach 100%. In addition, when reviewing the policies, she found there was a redundancy between code and policy; for the purpose of clarity and better ease of administration, she proposed the code be updated to reference that both sick leave and shared leave are addressed in the personnel policies. Councilmember Tibbott observed these changes are the result of laws passed by the state and the expense is passed onto cities. Ms. Neill-Hoyson agreed, advising these were voter passed initiatives. Councilmember Tibbott observed without state funding, it is up to cities to fund. Ms. Neill-Hoyson agreed, relaying that the premiums to cover the new wage insurance program is a cost sharing between employees and the employer. Ms. Neill-Hoyson clarified the resolution would amend the current policies for sick leave and shared leave and add a policy for Washington State Paid Family & Medical Leave. The ordinance would update the code to remove reference to the language in the code and refer to the personnel manual. COUNCILMEMBER TIBBOTT MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE RESOLUTION NO. 1443. Councilmember Buckshnis thanked Ms. Neill-Hoyson for updating the policies and procedures and creating resolutions for the policies. MOTION CARRIED UNANIMOUSLY. Edmonds City Council Approved Minutes December 10, 2019 Page 19 COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO APPROVE ORDINANCE NO. 4170. MOTION CARRIED UNANIMOUSLY. 5. RESOLUTION TO APPROVE CERTAIN REVISIONS TO THE SHARED LEAVE AND SICK LEAVE PROVISIONS OF THE CITY OF EDMONDS PERSONNEL POLICIES AND THE ADDITION OF THE WASHINGTON STATE PAID FAMILY AND MEDICAL LEAVE PROVISIONS See item 8.4 for discussion and action. 9. MAYOR'S COMMENTS Mayor Earling remind there will be a short Council meeting next week at 7:00 p.m. 10. COUNCIL COMMENTS Councilmember Buckshnis expressed her appreciation to Mayor Earling and Carolyne LaFave for honoring Bill Anderson last week. He was touched as was she and everyone who enjoys his photography. Council President Fraley-Monillas clarified next week's meeting will be Consent Agenda for items that needed to be completed before year end as well as a 15 minute report from Councilmembers Mesaros and Teitzel regarding the City Attorney contract. She anticipated the meeting would be no more than 30 minutes. Councilmember Mesaros reported he attended the ECA/EPFD Board retreat on Saturday where he experienced the best diversity training he has ever been involved in. A facilitator led a discussion about the importance of diversity in society, the arts, the ECA and the EPFD including how they can best serve the community, being conscious of differences and celebrating differences. He acknowledged in addition to the great art that the ECA brings to the community, they bring a tremendous amount of diversity via their presentations and the diverse communities that come to Edmonds because of the ECA. Councilmember Teitzel reminded of the holiday in the docks celebration at the marina tomorrow beginning at 6:30 p.m. which includes the Christmas ships, decorated boats, live music, and hot spiced cider. Councilmember Johnson inquired about Mayor Earling's farewell party. Mayor Earling advised it is on Thursday from 4:00 to 6:00 p.m. at the ECA. 11. CONVENE IN EXECUTIVE SESSION REGARDING PENDING OR POTENTIAL LITIGATION PER RCW 42.30.110(1)(i) This item was not needed. 12. RECONVENE IN OPEN SESSION. POTENTIAL ACTION AS A RESULT OF MEETING IN EXECUTIVE SESSION This item was not needed. Edmonds City Council Approved Minutes December 10, 2019 Page 20 13. ADJOURN With no further business, the Council meeting was adjourned at 9:31 p.m. 04 . �0 (�� L DAVID O. EA LI G, MAYOR 6CQJf PASSEY, CITY CLE Edmonds City Council Approved Minutes December 10, 2019 Page 21