Cm130115EDMONDS CITY COUNCIL APPROVED MINUTES
January 15, 2013
The Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Pro Tem Petso in the
Council Chambers, 250 5tb Avenue North, Edmonds. The meeting was opened with the flag salute.
ELECTED OFFICIALS PRESENT
Lora Petso, Mayor Pro Tem
Adrienne Fraley-Monillas, Council President Pro Tem
Strom Peterson, Councilmember
Frank Yamamoto, Councilmember
Joan Bloom, Councilmember
Kristiana Johnson, Councilmember
Diane Buckshnis, Councilmember
ELECTED OFFICIALS ABSENT
Dave Earling, Mayor
ROLL CALL
STAFF PRESENT
Al Compaan, Police Chief
Stephen Clifton, Community Services/Economic
Development Director
Phil Williams, Public Works Director
Shawn Hunstock, Finance Director
Carrie Hite, Parks & Recreation Director
Jerry Shuster, Stormwater Eng. Program Mgr.
Jeff Taraday, City Attorney
Sandy Chase, City Clerk
Jana Spellman, Senior Executive Council Asst.
Jeannie Dines, Recorder
City Clerk Sandy Chase called the roll. All Councilmembers were present.
2. APPROVAL OF AGENDA
Mayor Pro Tem Petso relayed a request to move Agenda Item 6 to follow Item 3 to allow three staff
members to leave the meeting.
COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER PETERSON,
TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED UNANIMOUSLY.
APPROVAL OF CONSENT AGENDA ITEMS
Councilmember Buckshnis requested Item A be removed from the Consent Agenda and Councilmember
Bloom requested Item H be removed.
COUNCILMEMBER PETERSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS,
TO APPROVE THE CONSENT AGENDA AS AMENDED. MOTION CARRIED
UNANIMOUSLY. The agenda items approved are as follows:
B. APPROVAL OF CLAIM CHECKS #136304 THROUGH #136307 DATED JANUARY 4,
2013 FOR $13,914.77 AND CLAIM CHECKS #136308 THROUGH #136434 DATED
JANUARY 10, 2014 FOR $3,077,739.70.
C. APPROVAL OF LIST OF EDMONDS' BUSINESSES APPLYING FOR RENEWAL OF
THEIR LIQUOR LICENSE WITH THE WASHINGTON STATE LIQUOR CONTROL
BOARD, NOVEMBER 2012.
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D. APPROVAL OF LIST OF EDMONDS' BUSINESSES APPLYING FOR RENEWAL OF
THEIR LIQUOR LICENSE WITH THE WASHINGTON STATE LIQUOR CONTROL
BOARD, DECEMBER 2012.
E. NOVEMBER 2012 MONTHLY FINANCIAL REPORT.
F. AUTHORIZATION TO ADVERTISE A REQUEST FOR QUALIFICATIONS (RFQ) FOR
THE PERRINVILLE CREEK STORMWATER FLOW REDUCTION RETROFIT
STUDY.
G. PROSECUTOR'S CONTRACT
ITEM A: APPROVAL OF CITY COUNCIL MEETING MINUTES OF JANUARY 8, 2013.
Councilmember Buckshnis requested this item be removed from the Consent Agenda in order to abstain
from the vote.
COUNCILMEMBER PETERSON MOVED, SECONDED BY COUNCIL PRESIDENT PRO TEM
FRALEY-MONILLAS, TO APPROVE CONSENT AGENDA ITEM A. MOTION CARRIED (6-0-
1), COUNCILMEMBER BUCKSHNIS ABSTAINING.
ITEM H: APPROVAL OF CHANGE ORDER FOR THE HAINES WHARF PARK AND
WALKWAY PROJECT.
Councilmember Bloom referred to a citizen request and relayed her interest in ensuring there was a plan
to fully inform citizens regarding the change in the cost of the Haines Wharf Park project. She also
recalled discussion at a prior Council meeting that there would be a State audit of the project. Council
President Pro Tern Fraley-Monillas commented it was fair to say there would be an audit of some sort; the
City cannot mandate the State audit the City.
Councilmember Buckshnis explained the City can make that request during the entrance interview with
the State Auditor. If there was interest in making citizens aware, she suggested the Finance Committee
review it and citizens can attend the committee meeting.
Council President Pro Tem Fraley-Monillas suggested the Finance Committee would not disapprove or
change the change order; it would be appropriate to open the books to any citizen who wanted to look at
it.
Mayor Pro Tern Petso offered to refer the project to the Finance Committee for review, which is the 5"'
request in the citizen's letter. She assumed staff would respond to questions 1-3; the e question could be
addressed during the upcoming audit entrance interview.
COUNCILMEMBER BLOOM MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO
APPROVE CONSENT AGENDA ITEM H. MOTION CARRIED UNANIMOUSLY.
6. PRESENTATION ON THE STATUS OF THE DAYTON STREET AND SR104 DRAINAGE
ALTERNATIVES STUDY.
Stormwater Engineering Program Manager Jerry Shuster reviewed the study history and approach:
• History
o Part of 2012 Stormwater Utility Capital Improvement Program
o Funded entirely by Stormwater Utility Fund
Study Purpose
o Define major causes of flooding
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o Identify best alternatives to reduce flooding
o Engage with stakeholders on alternative implementation
He reviewed who and what the flooding affects (stakeholders):
• Edmonds Residents & Visitors
• City infrastructure (especially wastewater treatment plant)
• Port of Edmonds (Harbor Square)
• Washington Department of Transportation
o SR 104
o Washington State Ferry holding lanes/booths
• Sound Transit (Dayton St access to station)
• Salish Crossing
Mr. Shuster described why the intersection floods:
1. The inability of Shellabarger Creek to entirely flow under SR104 into Edmonds Marsh.
2. The elevation of the Dayton Street stormwater line at the intersection of SR104 is lower than the
water level in Puget Sound during much of the tidal cycle.
Mr. Shuster displayed an aerial map, identifying the location of Shellabarger Creek. He identified places
there are issues with culverts and areas of the Edmonds Marsh filled with cattails and silt which cause the
flow to go north to the intersection rather than under SR104. He also identified the location of the Dayton
Street stormwater line.
Mr. Shuster described possible alternatives to reduce flooding, noting all the alternatives are large,
complex, and involve significant permitting and/or stakeholder agreement (approximately 3 years +):
• Shellabarger Creek/Marsh
o Restore Shellabarger Creek Channel in Marsh to move more water through + possible culvert
replacements
o Restore the open water portion of Edmonds Marsh west of SR104 to increase the flood
storage volume and allow Shellabarger Creek to flow freely into the Marsh
o In conjunction with Willow/Creek (Marsh outlet) day lighting, use existing Willow Creek
pipe to move more water out of Marsh during large storm events (pump)
• Dayton Street Stormwater System, once Shellabarger flows are removed:
o Reroute runoff from ferry holing lanes north of Dayton Street to a different discharge point
o Lift station (pump) to move runoff into Puget Sound during high tides
Next steps include:
• Consultant to do detailed analysis on the most feasible alternatives
• Public meeting in early spring 2013 to present detailed analysis of alternatives and get input
• Work with stakeholders to develop plan to implement preferred alternatives
• Move projects into CIP for design and implementation
Councilmember Buckshnis observed there was no effort to address water quality of runoff into Puget
Sound or Edmonds Marsh at this point. Mr. Shuster agreed there was not. Councilmember Buckshnis
asked about grant funding from WRIA 8 with regard to the culverts and Edmonds Marsh. Public Works
Director Phil Williams answered there may be grants available for the environmental aspects of the
project as well as funding from stakeholders such as WSDOT who owns the culverts.
Councilmember Buckshnis asked whether the culverts were so backed up that nothing flowed through.
Mr. Williams responded the culverts are not structurally sound; they are beginning to collapse and
material in the culverts prevents flows. Even if the culverts were fixed, silt and material on both sides
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prevent water from entering the culverts and from exiting the Marsh. The project will include the culverts,
the approach to the culverts and exit from the culverts through the Marsh to where it connects with
Willow Creek. He anticipated it would be a lengthy and expensive project and it would take time to reach
consensus on the appropriate solution.
Councilmember Buckshnis commented salmon recovery will provide opportunity for grants. Mr.
Williams explained another study is occurring simultaneously to consider alternatives for Willow Creek
and to improve the fish habitat in Edmonds Marsh; all those issues need to be considered in a
comprehensive solution to flooding, environmental and fish -related issues. Councilmember Buckshnis
suggested staff make a presentation to WRIA 8.
Councilmember Bloom commended Mr. Shuster for his clear, concise presentation and materials. For
Councilmember Bloom, Mr. Shuster identified the location of Shellabarger Creek to the east, explaining
Shellabarger Creek starts at approximately 220'h & 9t' Avenue, flows down the hill in open channels in
residential areas and culverts in several places.
Councilmember Bloom commented this is the first phase of routing Shellabarger Creek appropriately so it
does not drain into Dayton/SR104 intersection. Mr. Shuster agreed the projects are inter -related as Mr.
Williams explained. This study is one component.
PUBLIC HEARING ON THE ESTABLISHMENT OF AN EDMONDS DOWNTOWN BUSINESS
IMPROVEMENT DISTRICT.
Community Services/Economic Development Director Stephen Clifton explained over the past few years,
a Downtown Business Improvement District (BID) Committee has been meeting to discuss the steps
necessary to create a BID. The committee is now requesting the City Council adopt an ordinance to
establish an Edmonds Downtown BID. This is the third step in a public process to form an Edmonds
Downtown BID. The Council packet contains information related to the BID Committee's request,
specifically an Edmonds Downtown BID Committee Report; a BID Committee PowerPoint; a map
depicting the proposed Edmonds Downtown BID boundary; a map depicting the proposed Edmonds
Downtown BID boundary and existing zoning; Resolution 1284, approved by the City Council on
November 27, 2012, initiating a proposal for an Edmonds Downtown BID; Resolution 1285, approved by
the City Council on December 18, 2012, declaring the City's intent to establish an Edmonds Downtown
BID; and a draft ordinance to establish an Edmonds Downtown BID.
Mr. Clifton explained notification for tonight's public hearing included publishing the entire resolution
declaring the City's intent to establish an Edmonds Downtown BID including all attachments in the
Herald on January 1, 2013; a public hearing notice and resolution mailed to 405 business licenses on file
with the City located within the BID boundary on January 2, 2013, and public notice requirements
completed on January 2, 2013 including posting the notice at City Hall, Edmonds Library, Public Safety
Complex, and Post Office. Information regarding the BID and public hearing was also posted on the
City's government channel and home webpage as well as the public notice page of the City's website.
The November 27, 2012 City Council meeting has video annotation, allowing viewers to see the
Edmonds Downtown BID presentation and Q&A from Councilmembers.
David Arista, Arista Wine Cellars, a member of the Edmonds Downtown BID Organizing Committee,
stated this is a very important step for the downtown business community. Following the presentation and
public hearing, he urged the Council to approve the ordinance to establish the Edmonds Downtown BID.
In addition to the three presenters, he introduced other members of the volunteer BID organizing
committee, Kim Wall, Reliable Flooring; Jenny Shore, The Wooden Spoon; Robert Boehlke,
Housewares; Chris Fleck, Puget Sound Tax Services; and Ken Grant, Motivated Branding. He noted all
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the members of the committee have businesses in Edmonds and many also reside in Edmonds. Mr. Arista
reviewed the reasons they are here:
• To encourage the City Council to pass the ordinance to establish the Edmonds Downtown BID
• The BID has the ability to strengthen downtown businesses and build a stronger sense of
community
• All service and retail businesses will benefit
o "My barber is down the street. My lawyer is my next -door neighbor. My accountant is three
doors down. My chiropractor is up the street. My bank is down the alley."
o Open door retail businesses refer people to service businesses
• We're all in this together, and together, we have the ability to create a thriving business district
• Economics — all service and retail business desire more business
• Timely topic — key points in Roger Brooks' presentation was the business community should
initiate this process, only takes a third of business/property owners to initiate a process like a
community building process
o BID committee gathered signatures equating to approximately 58% of total assessments
within the BID
• Competition from big office buildings in other areas, the internet, and malls
• Other cities have large budgets to promote their city and downtown districts, the downtown
business district has no budget
Mr. Arista explained a BID is a self -funding mechanism to improve a town's vitality; it is a powerful tool
that allows for an assessment on businesses within a defined area. Funds collected are used for the benefit
of the businesses being assessed. The BID is sustainable, producing a set amount of money to fund
programs. It is not tax on Edmonds residents, only an assessment on businesses within the BID. They are
not asking the City for any money and do not want to rely on the City government to keep the downtown
vibrant.
Mr. Arista described the origin and growth of BIDS:
• Concept began in the 1970s
• There are 1100 BIDS in the United States
• Several BIDS in Seattle -metro area including West Seattle Junction, Downtown, International
District, Pioneer Square, Columbia City and University District
• The City's Economic Development Plan states: "Explore options such as Business Improvement
Districts/Areas (special assessment districts) as a way to help shopping areas fund marketing and
beautification in a sustainable fashion."
• The scope of services provided by a BID can vary based on the needs of the community
He cited several reasons for creating an Edmonds BID:
• An attractive and thriving downtown is a crucial component to a vibrant community — downtown
is the heart and soul of Edmonds
• An increasingly successful downtown increases tax revenues for the City
• A win for the business community, win for residents and a win for the City
Pam Stiller, Walnut Street Coffee, explained when the committee was formed several years ago, they
contacted a consultant who established districts in downtown Seattle, and in other parts of Washington
and Oregon. That information was used in shaping the BID. The committee's outreach included:
• Met one-on-one with hundreds of businesses located within the proposed boundaries
• Sent informational letters and press releases
• Met with city staff, City Attorney and Councilmembers
• Garnered support via petitions — signatures of business owners representing 58% of the total
assessment within the BID
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She provided a map of the proposed geographic boundaries of the Edmonds Downtown BID, which was
included in the Council packet as well as mailed to all individuals located within the proposed boundaries.
The concept was to generally align with commercial zoning districts BD1 and BD2 but considers the
highest concentration of businesses located in downtown Edmonds. The boundaries include 313
businesses as of December 31, 2012. Two assessment categories were established, one for "open door"
and a second for "by appointment" which loosely correlate to retail and service; a higher volume of traffic
for a retail business equates to a higher rate. Only occupied spaces are assessed. The assessment is on
business owners, not property owners. She reviewed the proposed assessment rates:
Square Footage
"Open Door"
`By Appointment"
Assessment
Assessment
0-499
$90 per quarter
$30 per quarter
$360 per ear
$120 per ear
500-999
$105 per quarter
$45 per quarter
$420 per ear
$180 per ear
1000-1999
$120 per quarter
$60 per quarter
$480 per ear
$240 per ear
2000-4999
$135 per quarter
$75 per quarter
$540 per ear
$300 per ear
5000 and over
$150 per quarter
$90 per quarter
$600 per ear
$360 per ear
Ms. Stiller summarized the goal was to create an affordable rate structure. The most any business in
downtown Edmonds would pay is $600/year. The proposed Edmonds assessments are about 10% of what
the West Seattle and University District BIDs assesses businesses. The idea is if everyone pays a little,
everyone will benefit a lot. Of the 58% signatures, 55% are by appointment businesses and 45% are open
door businesses. The total annual budget, based on 313 businesses within the boundary, would be
approximately $89,000.
Ms. Stiller responded to questions that have been asked during the process:
• How is the BID proposed to be governed?
o BIDs are not typically governed by the City Council; generally by Member Advisory Boards
made up of business owners who pay an assessment
o There will be a representative Board with a proportionate number of open door and by
appointment businesses and small and large businesses
• How will the BID comply with the Open Public Meetings Act and Public Records Act?
o Proper meeting notification will be provided
o Meeting minutes will be maintained
• How will assessment be collected?
o The City will invoice members and collect the assessments on behalf of the BID
o The Finance Department assures it is a streamline process and will take only a limited amount
of staff time
o Assessments will be billed annually with business licenses but can be paid quarterly
• Does the Council control the spending?
o The City Council will ensure the BID spends its budget within the scope of purposes outlined
through this process.
o The Member Advisory Board develops a work plan and the City Council approves it
• Can Council change the BID area and/or rates after the BID is formed?
o Changes must be initiated by the City Council by resolution with notice to the affected BID
members and after conducting a public hearing. If a majority protests, the process stops.
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o There is a process to change the assessment rates. It is the committee's intent that the
assessment remain as proposed
o BIDs are designed to be self -governed
Mary Kay Sneeringer, Edmonds Bookshop, explained if the ordinance is adopted tonight, Mayor
Earling will appoint an Interim Member Advisory Board comprised of BID rate payers with a balance of
open door and by appointment members in an approximation of the overall assessment to value. The
intent is to have representatives from small and large businesses and open door and by appointment
businesses provide input to the Member Advisory Board. The job of the Interim Member Advisory Board
will be to submit a work plan to City Council within 90 days showing how the BID intends to spend the
money and submit bylaws and policy guidelines within 180 days. Being part of the BID gives businesses
an opportunity to contribute; a forum for ideas to be brought forward, positive or negative; and a reason to
pay attention to what occurs in downtown Edmonds.
The work plan can address six areas that define the scope of purpose of a BID:
1. Marketing and Hospitality
• Maps
• Kiosks
• Directors
• Social Media
• Marketing campaign such as shop local
2. Safety and Cleanliness
• Enhancements to pedestrian environment such as extra trash cans
3. Appearance and Environment
• Beautification of downtown
• Consistent look and feel to downtown area such as art, lights, benches, etc.
4. Transportation
• Directional signs identifying the location of parking, City Hall, shopping, etc.
• Bike racks
• Parking solutions
5. Business Recruitment and Retention
• Education for existing businesses
• Filling vacancies with needed businesses
6. Organization
• RCW allows possibility of paying an administrator or hiring professional services such as
grant writer or other services
Ms. Sneeringer explained the Interim Member Advisory Board will determine which of the above areas
have priority. With the limited budget, not everything will be addressed at once. This is a smart
investment, a smart choice, and a powerful public and private partnership. Everyone wants a strong and
vibrant City; this is one way to get it started. There is much to be proud of in Edmonds but the status quo
is not smart or a sustainable business model. A BID brings focused and dedicated resources, a united
voice that builds on the best that Edmonds has to offer. Many cities wish their business community would
take initiative to improve; downtown Edmonds businesses are doing it. It has taken years for such a
collaborative effort. Looking to the future, the BID is a way to strengthen the community and to
encourage business growth downtown. The BID committee is asking for a chance to work together and
asks that the City Council approve the ordinance.
Council President Pro Tem Fraley-Monillas noted two City Councilmembers' businesses will be within
the BID. She asked if they should exclude themselves from the discussion. City Attorney Jeff Taraday
responded Councilmembers Peterson and Bloom can participate. The beneficial interest provisions that
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would prevent their participation are related to contracts for services to be provided by Councilmembers
Peterson or Bloom. The relationship between their role as Councilmember and their limited role as one of
many businesses within the BID is not significant enough to prevent their participation.
Councilmember Bloom explained she is a business owner and has had multiple conversations with other
business owners and five members of the BID committee. She referred to information provided to her as
business owner that there were 369 businesses but was told by City Clerk Sandy Chase that 405 notices
were sent to businesses, but only 313 assessed businesses in the proposed BID. Ms. Stiller explained there
are 369 parcels within the proposed boundary, 405 notices were sent out because there are multiple
businesses within some parcels. The difference between the 313 assessed businesses within the proposed
BID and the 405 notices is because some are non-profit businesses which are excluded, apartment and
condominium properties, and some businesses have multiple business licenses for one business. For
example, in a hair salon, each stylist has his/her own business license; the assessment would be on the
space, not each individual in the space.
Councilmember Bloom relayed her understanding that some groups of businesses who share space would
need to determine how much each business paid. Ms. Stiller answered yes; in the instance of a salon, the
ratio each stylist paid may be based on the number of hours per week he/she works. Councilmember
Bloom relayed it was then possible some businesses may not have known the amount of their assessment
when they were informed of the BID. Mr. Clifton explained, using Salon 512 as an example, only the
salon would be assessed. The owner could choose to ask each stylist with a business license to share in
the expense or could pay it herself.
Councilmember Bloom asked the basis for the 60%, now 58%. Ms. Stiller answered when the BID
committee provided information to the Council in November, the number of businesses was as of August
31, 2012. The percentage changed to 58% tonight and represents changes that have occurred in the last
three months. Ms. Sneeringer explained the petitions represent agreement from businesses that represent
approximately 60% of the total assessment. When a decision was made to pursue the ordinance method
rather than the petition method, the petitions became a show of support for the idea but not a legal
requirement.
Councilmember Bloom observed a total of 313 businesses would be assessed, 149 people signed the
petition, which is less than 50% of the businesses that would be assessed. Ms. Stiller answered as of
December 31, 2012 the total assessments would be $89,820. To reach the 60%, they would need to have
signatures that represent over $52,000; they have signatures of $52,020 which is 58%. Mr. Clifton
explained RCW 35.87A.010 cites a 60% threshold but RCW 35.87A.030 cites a 50% threshold. The BID
committee strived to achieve the 60% threshold in order to show a higher level of support.
For Councilmember Bloom, Mr. Clifton provided the following:
• 82 or 55% of the 149 businesses who signed the petition in support of the BID are by
appointment
• 67 businesses or 45% of the 149 businesses who signed the petition in support of the BID are
open door
• 222 or 71 % of the 313 businesses in the BID are by appointment
• 91 or 29% of the 313 businesses in the BID are open door
Councilmember Bloom observed the BID would be subject to the Open Public Meetings Act (OPMA) as
are all City committee and board meetings. She inquired about staff time related to the OPMA. Mr.
Clifton responded the BID has created a website that contains most of the BID information. The
ordinance states Finance Director Shawn Hunstock and he will serve as ex-officio members of the BID
Board to provide oversight on behalf of the City. If the BID Board holds quarterly meetings, he
anticipated 4-6 hours/year each to attend meetings.
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Councilmember Bloom asked the estimated time to bill assessments. Finance Director Shawn Hunstock
responded, based on his administration of the BID in Auburn, he estimated 5-10 hours per quarter for
billing and cash receipting.
Councilmember Bloom asked about staff time related to noticing meetings, posting minutes on the
website, public record requests and other obligations related to the OPMA. Mr. Clifton stated it would
take staff about 5 minutes to post notices on the website. City Clerk Sandy Chase explained she was
uncertain if the BID or the City Clerk's Office would be preparing and posting notices. The BID may
handle its own meeting notices, such as the Public Facilities District does. If it were done by the City
Clerk's Office, she estimated notices for monthly meetings would require 5 hours of staff time. Mr.
Clifton responded if the BID Board meets quarterly, staff could post notices to the website in about 5
minutes, Ms. Chase could post them in the library and other locations for a total of 5 hours. The ordinance
states the BID Board must prepare bylaws within the first 6 months and a budget for 2013 within the first
90 days. He anticipated the BID Board would initially meet at least monthly and possibly more often
within the first 90 days. He estimated his time at about 5-6 hours a month within the first 6 months. The
ordinance requires the BID Advisory Board prepare an annual work program before September 30. The
work plan is submitted to the City and reviewed by staff, staff will make a recommendation to City
Council; the City Council approves the work program and returns it to the BID Advisory Board for
implementation. Based on discussions with Seattle, he estimated review of the work program would take
5 hours.
Councilmember Bloom recalled when the Tree Board was formed staff stated there would be no staff
support. Given the cuts made in the 2013 budget and directors' efforts not to over -burden staff, she asked
whether consideration had been given to who would do the work to support the BID and whether staff
was available. Mr. Clifton reiterated the estimate of 5-10 hours per quarter once the BID Advisory Board
is meeting quarterly but more during the first 6 months. By approving the ordinance, the Council
acknowledges the Finance Director and Community Services/Economic Development Director will
participate as ex-officio members. Once the BID is underway and businesses notified, everything can be
done electronically which will not take a great deal of Finance Department staff time.
Council President Pro Tern Fraley-Monillas asked whether the BID could be charged for work done by
City staff. Mr. Taraday answered the City Council has the ultimate authority over how the assessment
revenue is spent as long as it is spent consistent with the purposes established in the ordinance. The
purposes in the ordinance include contract staff, professional services and administration costs. When the
City Council approves the BID's annual budget, that issue could be revisited.
Councilmember Buckshnis asked Mr. Clifton whether assisting the BID was part of his job as Economic
Development Director. Mr. Clifton answered yes; noting his contact in the Economic Development
Department in Seattle administers the BIDs.
Councilmember Johnson observed within 90 days the Board is to establish a work program and budget
and develop bylaws and policies within 180 days. She asked what is a realistic timeframe to have those
items prepared concurrently. Mr. Clifton responded the BID committee's consensus was 90 days is a
reasonable timeframe. There are a number of BIDs in Washington whose models and bylaws could be
used.
Council President Petso opened the public participation portion of the public hearing. She advised the
Council received a number of letters, noting those that requested be read into the record.
Councilmember Yamamoto read a letter dated January 12, 2013 from Ed Dorame, Guarantee Home
Mortgage, a business owner who operates a business within the proposed Edmonds Downtown BID,
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expressing his support for creating a BID. The concept of creating a BID funded by businesses, and not
the City, for the purpose of funding various initiatives and programs, is a step toward helping strengthen
the overall downtown business community and in general, the City. He cited programs financed by BID
Funds and effects that will benefit all businesses: business education and outreach; increased
opportunities for open door and by appointment businesses to network and develop stronger connections;
creation of a funding source that will help the BID leverage dollars toward grants; marking the positive
attractions and attributes of downtown; a unified voice for the downtown business community; a
healthier, livelier downtown that will not only help motivate business owners to stay in Edmonds but
attract more business to downtown; and improved competitiveness with neighboring towns, malls and
online services. He cited other cities in Washington that have recognized the benefits and created BIDS
including Olympia, Poulsbo, Richland, Seattle (7), Spokane, Tacoma, Yakima, Auburn, Everett, Burien
and Port Angeles and another that is in the process of forming a BID. Downtown is the centerpiece, heart
and soul of the city. He supported working together to increase the drawing power of the downtown,
strengthen its economy, and create a vibrant community.
Mayor Pro Tem Petso read a letter in the Council packet from Dr. Jill Jacobson, Edmonds. As every
business owner knows, maintaining a competitive edge does not entail relying simply on past customers
but also attracting new customers by being in the forefront of trends and marketing avenues. Competition
for visitors' dollars spent in destination specialty towns even neighborhoods, such as Snohomish,
LaConner, Fairhaven, Mt. Vernon, Woodinville, Walla Walla, Chelan, Winthrop, Madison Park,
Madrona, Magnolia, International District, and Ballard, is ferocious. The City's neighbor, Lynnwood, has
ads in AAA Journey and Sunset magazines. To not be left in the proverbial dust, Edmonds business
owners must demonstrate they are in tune with today's many varied and dynamic marketing approaches.
Edmonds business owners must stick together to invest in their future. She was not offering to be part of
the plan simply because she is a business owner; her practice is fully via word of mouth and referrals
from medical providers and insurance panels. She wanted to be part of the Edmonds Downtown BID
because she loves living in Edmonds and many friends who are small business owners feel the same;
Edmonds is truly a treasure.
Chris Chase, Edmonds, Community Pastor, North South Church, explained he represents the church in
the Downtown Edmonds Merchants Association and Edmonds Chamber of Commerce and has been
aware and supportive of the BID process for the past three years. During his 22 year career with the
YMCA and 14 years as an associate pastor, he learned quality of life is everything in a community. The
BID represents an opportunity for even stronger synergy. In his experience, reaching out personally and
professionally helps everyone grow stronger. He agreed with Mr. Arista, this was a win -win -win proposal
and he supported it personally and professionally.
Juliana Van Buskirk, Edmonds, commented as an owner of a service business within the Edmonds
Downtown BID, she supports the creation of the BID. As a financial advisor, her business primarily
operates by appointment; her clients come to an appointment and then choose to shop, eat and use other
professional services while in downtown Edmonds before or after their appointment. Prospective clients
learn of her business when visiting other downtown Edmonds businesses. Service businesses benefit just
as retail businesses because an attractive, thriving downtown is crucial to a vibrant community for
residents and businesses. She wanted to own a business in a thriving downtown location that is attractive
to her clients and employees; the Edmonds Downtown BID will help accomplish that. She expressed her
support for the BID and urged the Council to approve the ordinance.
Claude McCoy, Edmonds, explained he moved his business to Edmonds 15 years ago. He requested the
Council vote against the proposed BID. He asserted some of the information provided to the Council was
false or misleading. He agreed many of the things included in the proposal such as aesthetics, better
transportation, better parking, preservation of Edmonds history, cleaner streets, etc. were all great things
for Edmonds. If he were a retailer, he would likely support it. He owns an appointment -only business and
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January 15, 2013
Page 10
the things cited in the proposal will not benefit his business at all. Although the Council was told all
businesses had been adequately notified, the notice of tonight's meeting was the first he had heard of it; of
the three other people in his office, his wife had not heard of it and he doubted the other two had. If the
Council felt a BID was a good idea, he preferred all businesses in the City participate, not just the
businesses in a specific corridor. He noted the BID committee was comprised primarily of retail
businesses who will be the primary beneficiaries of a BID. Many appointment -only businesses would
have no benefit. He questioned how much he would pay when he worked two days a week and shared
space with his wife who worked one day a week.
Kyle Huffman, Edmonds, explained he and his wife own two businesses in Edmonds, one at 101 Main
Street. His wife signed the petition, he declined. Had his wife known the details, she may not have signed.
One of his tenants said he only signed the petition because Mr. Huffman's wife signed it. He noted many
businesses on the west side of 2' feel the majority of money is spent between 3rd and 6' Streets. For
those on the west side and outside 3'd and 6d', the perception is the railroad and WSDOT runs Edmonds.
He questioned why the old Safeway property was not included when they would benefit from the BID. He
expressed concern that the Council could change the assessment rate in the future and that less than 50%
of the businesses signed the petition. Neither of his tenants would have signed if his wife had not signed
the petition. He suggested more work could have been put into forming the BID and more effort made to
get businesses to sign the petition. He suggested the waterfront and beaches bring people to Edmonds, not
downtown businesses.
Chris Fleck, Edmonds, thanked the other members of the BID organizing committee who spent months
and years developing this proposal. He urged the Council to approve the ordinance. Despite comments
from the last two speakers, a rising tide raises all boats; the more participation, the more self -assessed tax
dollars will be available which will help all businesses. He did not anticipate the BID would directly
impact his business positively or negatively but felt the same when he joined the Chamber of Commerce
12 years ago. He was uncertain his business had increased as a Chamber member but did not care because
he was giving back to the community. The BID also gives back to the community. The BID will increase
sales tax dollars which helps the City. To the speaker who suggested all businesses be assessed, he
clarified this is a business improvement district; the proposed district is downtown Edmonds.
Jenny Shore, Lynnwood, explained her family has owned the Wooden Spoon for 41 years. She
expressed her support for the BID, finding it very important for the community and businesses.
Alan Lawrence, Edmonds, owner of a professional business in Edmonds for 25 years, commented most
professional service businesses choose to locate in Edmonds because they love the quality of life. He
noted many could make considerably more if they moved to Kirkland or Woodinville but they love the
ability to walk to nearby restaurants, the movie theater, and other things in the community. Many people
he spoke to, even in professional services such as engineering firms, have no compelling reason to locate
here, but do so because they love Edmonds' vitality and energy. His practice distributes over $7
million/year in principle and interest to the community and could do so from any location but he has
chosen to do so in Edmonds. A community that supports itself like Edmonds and has a legacy like the
Hazel Miller Foundation that provides over $500,000/year to South Snohomish County is something
special. People who operate businesses here do so because they love the quality of life.
Brian Comstock, Edmonds, Comstock Jewelers, commented in his 36 years in business in Edmonds, he
has not seen as comprehensive an approach to increasing vitality and business in Edmonds. He expressed
his wholehearted support for the proposed BID.
Don Hall, Edmonds, speaking as an Edmonds downtown retailer for the past 17 years on 5th Avenue
North, not as an Economic Development Commissioner, expressed his support for the BID and said many
of the service businesses he does business with signed the petition. A vibrant, successful business district
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January 15, 2013
Page 11
is good for all businesses; the more people that are in Edmonds, the more exposure a business gets. More
retail stores bring more people and more restaurants. Citizens talk about wanting Edmonds to maintain its
quaint, small feel; sometimes small changes are necessary. Approving the ordinance puts money into the
downtown area, making it more vibrant, injecting more enthusiasm into an area that will help the
downtown core to be better than it is. When other business areas see the success of the Edmonds
Downtown BID, they may want to form their own such as Highway 99. Seattle has several BIDS;
Edmonds should eventually have several. Not only is the BID good for existing businesses, it will help
recruit new businesses to Edmonds. He thanked the BID organizing committee for their hard work and
urged the Council to approve the ordinance.
Mike Meeks, Edmonds, spoke in favor of the BID. Although the BID will not help his service business
directly, it will help the community. He emphasized everyone is in this together and needs to work
together. Of the 250 businesses his firm serves, he acknowledged they spend their small
advertising/marking budgets differently than he might but by paying a BID assessment, they leverage
those dollars. A lot can be done with 313 businesses paying an assessment and that is great for the
community and businesses. If businesses survive in Edmonds, his business and other service businesses
survive.
Bob Rinehart, Edmonds, a member of the Chamber of Commerce Board, explained the Chamber
believes in promoting the economic vitality of Edmonds and supports the BID because they feel strongly
it will promote the economic vitality. The 425 Launch program that meets every other month offers
training and instruction to businesses. Their next meeting is January 23, 5:30 — 7:00 p.m. in the Brackett
Room of City Hall. Most of the businesses who attend are service businesses. Last year at the first
Edmonds Expo at the conference center, the majority of businesses were service businesses. During the
first hour of the expo, businesses were exchanging cards, delighted to meet each other, and feeling those
connections would strengthen their business. He relayed a marketing instructor at Edmonds Community
College has agreed to have his students work on finding ways to help downtown businesses, specifically
service businesses, market and promote themselves. They also plan to conduct training directed at
businesses in the BID. He acknowledged the perception that retail businesses would benefit from
beautification and enhancements; he anticipated in 1-1%2 years, the BID could demonstrate that service
businesses will have significantly benefited from the BID. He commended the Council for doing their due
diligence and expressed his strong support for the BID.
David Brewster, Edmonds, explained Mary Kay Sneeringer and he have owned the Edmonds Bookstore
for nearly 12 years. They grew it from a modest, ill kept business into a center of the community and are
proud of what they have accomplished. He serves on the Edmonds Center for the Arts Board and the
Copper Canyon Press, a world renowned small press in Port Townsend. He commended the efforts of the
BID organization committee and said the City would be selling itself short if the Council does not pass
the ordinance due to the importance of the BID to Edmonds' future.
Gary Edmonds, Edmonds, Executive Director, Break Through Partners, located on 3rd Avenue, spoke in
favor of the BID. He works globally in distressed communities, some of the poorest in the world. He
helps establish what Stanford University calls backbone structures and forming collaborative leadership
that allows for, 1) growing relational trust in the community, 2) increasing creativity and innovation, and
3) maximizing gifts, resources, talents of the people in the community in a way that seeks the well-being
of all people.
Phil Kollen, Edmonds, Gallery North, a not -for profit business cooperative, expressed his opposition to
the BID as he felt the assessment was more than they could put into their budget.
Denise Cole, Edmonds, owner of Cole Gallery and co-owner of Arts Spot, said sometimes the arts are a
non-profit business. With two businesses, she will pay a lot but is excited at the movement in the
Edmonds City Council Approved Minutes
January 15, 2013
Page 12
community and what could be done together. She recalled when the discussions regarding the BID first
began, they recognized other communities had formed BIDS and it was working. BIDS have a track
record; it is not an experimental program. The intent is to support, build, and beautify the community. She
referred to people who visit their gallery and exclaim about how great the Edmonds community is. Via
collaboration, the community can continue to be built to its amazing destiny.
Dave Page, Edmonds, commented he has had four business licenses in Edmonds since 1984 and is now
retired. If he had the opportunity to join the BID from a mile away, he would be there in an instant. He
expressed his support for the BID, anticipating it would help Edmonds immensely. He urged the Council
to pass the ordinance tonight.
Katy Araup, Edmonds, explained when she moved her service business to Edmonds four years ago from
north Seattle, none of her clients who came from Seattle stopped coming because they like Edmonds. She
moved her business to Edmonds because of the opportunity to walk out of her office and be in Edmonds.
She spoke in favor of the BID, wanting to ensure the quality of the downtown area remains a draw. She
acknowledged many people visit Edmonds because of the beach but it does not cost to go to the beach. If
businesses are inviting, people leave the beach and spend money in the City.
Councilmember Bloom read a letter from Phyllis Carlton, Edmonds, owner of Teas and Treasures. Ms.
Carlton initially signed the petition in favor of the BID but now would like to request a no, not yet vote
because more information is needed. Affected businesses have been provided little data detailing this
government formation, its potential power and how it would operate. She expressed concerns: Can the
assessment be increased by the 9-member BID Board or are affected businesses allowed to vote? Is it fair
businesses have no vote on establishing the BID but would completely fund it and abide by its rules? She
provided a comparison, if a school wants new computers and landscaping, they propose a levy and
taxpayers in the district vote on it. Although she is in favor of contributing to worthy projects to improve
the downtown shopping experience and potentially increase the number of shoppers, she suggested some
of the purposes, uses and projects for spending BID funds such as safety and cleanliness, maintenance and
security were already funded by City taxes. Formation of a BID will require much participation and time
from City staff. Will the City shift the responsibility and cost of current beautification and maintenance of
downtown to the BID? She requested Council not move forward with the formation of a BID and when
and if a BID is created, contributing businesses have a voting opportunity initially and annually on how
the budget is spent. She recognized the BID will promote a future increase in visitors but suggested better
amenities be offered to existing visitors such as public restrooms and additional parking. She preferred to
concentrate on these unmet needs before moving forward.
Mark Zenger, Edmonds, owner of two businesses in Edmonds, one for over 25 years and the other for
18 years, and in commercial real estate as a developer and owner the last 30 years, primarily in retail and
hospitality, said he has been involved in 4 BID type organizations, 2 in Washington and 2 in Oregon. He
was concerned about the proposed BID because if it is a downtown Edmonds BID, typically everyone
downtown is included. When a City is marketed, 80% of the benefit is open door retail and hospitality
businesses. Harbor Inn and the waterfront restaurants will benefit from the BID's efforts but they are not
included. Other businesses on 5', north of Bell are also not included. He questioned why the entire
business district in downtown Edmonds was not included. Most BIDS have a cost -benefit analysis in
order to determine if the fee structure is fairly allocated; the proposed BID has appointment -only
businesses paying half of what an open door business pays when in reality open door businesses receive
75-80% of the benefit. In 10 years, this group will spend $1 million; he questioned why they planned to
spend it on things the City already provides and why they were not doing the one thing they should do —
market Edmonds. If Edmonds succeeds, the City will have more sales tax revenue and can address
security and maintenance issues. Rather than spending $34,000 of the $86,000 generated by assessments
on marketing, he recommended the BID spend 95% on marketing. He referred to the effort to require 12-
Edmonds City Council Approved Minutes
January 15, 2013
Page 13
foot ceilings to generate retail, explaining that did not make any difference to a retailer; they are only
interested in demographics and traffic.
Ron Clyborne, Edmonds, President of the Edmonds Chamber of Commerce, relayed the Chamber's
support of the BID as it is in accordance with the Chamber's mission of promoting the economic vitality
of the greater Edmonds business community through advocacy, leadership and education. He expressed
appreciation to the BID organization committee for spending thousands of hours on behalf of the entire
community, not just a specific group, whether service or retail. The Chamber supports the formation of
the Edmonds BID, finding it an important tool to enhance the City's economic vitality. He encouraged the
City Council to approve the ordinance to form the Edmonds Downtown BID. A thriving downtown is a
crucial component of a prosperous community, the heart and soul of a community. Downtown Edmonds
is the heart of the community and it makes Edmonds unique. The Edmonds Downtown BID equips
downtown business owners in helping themselves succeed which in turn benefits the Edmonds business
community, even businesses that are not downtown. His business is not downtown, but benefits from a
vital, growing, positively nurtured community. With an improved, sustainable economy, Edmonds
becomes a more prosperous community in the long term.
Tom Wilkes, Seattle, explained his business, located in Edmonds for over ten years, develops clinical
information systems for hospitals and health systems around the country. His employees, software
developers, programmers and technical support, visit Edmonds area restaurants and stores and 5-6 live in
the area. He located his business in Edmonds due to its convenience from Magnolia, Seattle and
communities to the north. When he first heard about the BID, he was in favor of participating, not
because they would receive any direct benefit but to give back to Edmonds. He quickly soured on the
process; the petition drive was suspended because it was not possible to gather 60% support. Speaking on
behalf of a majority of the businesses who did not sign the petition and are not here tonight but will be
impacted by the BID, if the assessment is not voluntary or the business community has not agreed to
assess themselves and is implemented by the Council, he felt it was a tax. He summarized the assessment
was a cost of doing business in Edmonds that he would not have in other locations. People he has spoken
to in his building have suggested there is a good possibility the BID would force them to relocate. He
suggested the Council decline the proposed BID.
Ron Hansen, Shoreline, business owner in Edmonds since 1968 and owner of a building in Edmonds
with ten business licenses, determined their fee will be approximately $2,000/year. Eight of the ten
businesses in the building did not know about the BID or were opposed to it. He was not opposed to a
BID and felt it was a good idea; however, he questioned the boundaries as proposed. He suggested a
smaller business district that was concentrated on the business that would benefit most or a larger
boundary to include more of the businesses that will benefit from the BID's efforts. He and his tenants,
who are primarily by appointment businesses will likely not benefit from the BID, but the fee is not
enough that it will put anyone out of business. He noted many businesses are struggling and this fee is
just one more cost. He urged the Council not to pass the BID tonight and to reconsider the size of the
district.
Pat McGee, a resident of Edmonds for 26 years, owner of a business in downtown Edmonds and
President of DEMA, expressed support for the BID and commended the organization committee for their
efforts and the remarkable amount of communication since the beginning, and use of local media to
spread the word. In his corporate role in Nordstrom in the past, he has often talked about pride in
ownership as it applies to business. Ownership is taking responsibility; the downtown businesses saw the
need to promote Edmonds, took ownership, and made it happen through three years of effort. He
encouraged the Council to approve the ordinance.
Kevin Clarke, Edmonds, recalled working for a family owned furniture company on Main Street as a
16-year old and seeing the owners struggle; they could have benefited from a BID that would rally funds
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January 15, 2013
Page 14
to promote the downtown business district. He moved his by appointment business from Pioneer Square
to downtown Bellevue and then to Edmonds 25 years ago. He signed the petition in support of the BID
and would be glad to match his annual assessment by ten -fold to support it. He urged the Council to listen
to Mr. Zenger who has incredible knowledge and experience in developing vibrant and successful retail
projects and lodging facilities. He agreed it was critical to expand the BID to at least the waterfront. The
BID provides the opportunity to bridge SR104, to connect the buildings at Harbor Square, Salish Crossing
and the waterfront restaurants. He agreed 90-95% of the BID's budget needed to be spent on the
promotion of the downtown district. He referred to his own shopping downtown and his desire for the
businesses to survive. He urged the Council to approve the formation of the BID but to expand the scope.
Kevin Morrison, Edmonds, commented when he arrived late to tonight's meeting, the BID at first
sounded like rainbows, flower and lollipops and he was in favor of it. But he then heard businesses had
not heard about the BID until late in the process or they were not included in the process. He applauded
the organization committee but agreed the BID needed to be expanded to include the waterfront
businesses. Before he lived in Edmonds, he visited the waterfront restaurants, the Senior Center and the
beaches, but those areas are not included in the BID. He supported the BID but asked the Council to vote
no on the existing plan and expand it.
Roger Hertrich, Edmonds, commented when he first heard about the BID, he thought of businesses that
would pay an assessment but receive no benefit. He relayed comments from one business owner who said
he did not have time to come to the public hearing but did not like the idea of a BID. He agreed with Mr.
Zenger and Mr. Wilkes and suggested the Council review their comments. He felt the BID was not
equitable because it does not include businesses that are part of downtown Edmonds such as at the Port
and Harbor Square. There is also no fairness between businesses that will receive benefit and those that
will pay the assessment. He feared the assessment would be a problem for struggling businesses. He
suggested areas such as Westgate and Five Corners should form their own BID and the primary effort of
the BID should be marketing Edmonds. He urged the Council not to take action tonight and suggested the
Council consider this the first of a continued public hearing due to issues that have been raised during
tonight's public hearing.
Ruth Arista, Edmonds, business owner, recalled 24 months ago a group of volunteers raised the idea of
a BID which is done in other communities. Everyone dreams of Edmonds staying beautiful, healthy and
kind, but there are challenges with funding City services. The State no longer has a tourism office. She
referred to Phyllis Carlton's letter, agreeing that public restrooms are absolutely needed in Edmonds; the
BID makes that possible. BID members do get to vote, the businesses that are assessed get to make
decisions on how the money is spent; it can be 60% marketing. The City Council does not have a big
economic development budget; tradeoffs have included things such as cuts to the flower program. A vote
in favor of the formation of the BID recognizes there is no silver bullet solution to the budget and
financial cuts the Council and staff has made. During difficult fiscal times, solutions have included a
community group that raised funds for Yost Pool and community members sponsoring flower baskets.
She clarified although the University District BID funded security, Edmonds does not have to do that; the
members get to determine how the funds are spent. She summarized her business will pay $540/year; she
can spend $300 on one ad in the Beacon. The expenditure on the BID is likely better for the community.
Ken Grant, Edmonds, a member of the BID organizing committee, explained the worst case scenario for
a service business was $90/quarter. He doubted that expenditure would cause anyone to relocate. The
pride of anyone who lives, works, plays or prays in Edmonds must outweigh the suggestion that
$90/quarter would be excessive. He agreed all boats rise with a positive tide. To the suggestion of a larger
area, he explained the boundaries were based on what the City views as the business district, BD1 and
BD2. Business owners who locate in Edmonds do so because of their pride in Edmonds.
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January 15, 2013
Page 15
Hearing no further comment, Council President Petso closed the public participation portion of the public
hearing.
Mr. Clifton referred to the comment from Gallery North who identified themselves as a not-for-
profit/non-profit, explaining non-profit businesses are exempt from the assessment under the ordinance.
Councilmember Buckshnis thanked everyone for their comments. She asked about suspending the
requirement for 60%. Mr. Clifton explained the BID committee's target was to collect signatures
representing 60% of the total assessment. As of August 31, 2012, they were at 60% but due to business
turnover, as of December 31, 2012, they have signatures representing 58% of the total assessment.
Councilmember Buckshnis asked if the boundaries could be expanded to the waterfront and near -
waterfront if the Council approved the formation tonight. Mr. Clifton answered yes, RCW 35.87A.070
allows the boundaries to be expanded and the hearing continued. RCW 35.87.075 allows the Council to
modify the boundaries at a later date. The process requires issuance of a public hearing notice, but not a
resolution of intent and identifying the affected properties that would be included in the expanded
boundary. If the Council is seriously considering a major expansion of the BID boundaries, Mr. Taraday
suggested the Council continue the hearing and follow the procedure in RCW 35.87A.070 which states if
the legislative authority decides to change the boundaries of the proposed area, the hearing shall be
continued to a time at least 15 days after such decision and notice shall be given as prescribed in section
050 showing the boundary amendments but no resolution of intention is required.
Mr. Taraday explained the procedure in RCW 35.87A.075 is used after the Council has adopted a BID.
RCW 35.87A.075 states modification to an existing boundary may occur no more than once per year and
may not affect an area with a projected assessment fee greater than 10% of the current assessment role of
the existing area. If the Council wanted to significantly expand the proposed boundaries of the BID, the
Council should continue the hearing and consider it again in at least 15 days because the limitation in
RCW 35.87A.075 would prevent the Council from adding more than 10% if the ordinance is adopted
tonight.
Councilmember Buckshnis asked whether there would be any conflict with including properties located
within the Port District. Mr. Clifton answered there would not be a conflict. Councilmember Buckshnis
asked why the BD1-5, Harbor Square and waterfront areas were not included. Mr. Arista answered the
proposed boundary is what most people think of as downtown Edmonds. The restaurants on the
waterfront and Harbor Square are part of the Port District. The committee did consider including Salish
Crossing but when the process began 2'/2 years ago, the property ownership was thought to be too
dysfunctional to be included in the downtown business district.
If the Council wanted to modify/expand the BID, Councilmember Buckshnis observed 15 days would be
required to notice the businesses following by a public hearing. Mr. Taraday answered if the Council
wants to increase the boundaries beyond what was noticed for tonight's hearing, at least 15 days' notice
must be provided. He was uncertain how much time would be required to notice businesses in an
expanded area.
Councilmember Buckshnis asked if the Council approved the BID with the proposed boundaries and then
wanted to expand it in the future, could it be expanded by 10% or the Port District encouraged to create
its own BID. Mr. Taraday answered any area in Edmonds can create a BID and BIDs could theoretically
be adjacent. A possibility would be to adopt the ordinance tonight based on the noticed boundaries and
create a separate BID for the expanded area. That would avoid the 10% limitation. If the Council wanted
to expand the boundary of the proposed BID in the future, the expansion would be limited to 10% which
is a significant limitation.
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January 15, 2013
Page 16
Mr. Clifton noted there are 6-7 businesses on the Salish Crossing property. Using the $89,000 total
assessment, if the 6-7 businesses are retail and at the maximum assessment, $50/month or $600 per
business, the total for 7 businesses would be $3500 which would not exceed the 10% or $8900 threshold.
Council President Pro Tern Fraley-Monillas asked why the boundary did not extend south and west of 5t'
Avenue. Mr. Clifton explained the boundary encompasses most of the commercially zoned land. The
boundary is focused on the highest concentration of uses and the area west of 5tn Avenue is
condominiums. Council President Pro Tem Fraley-Monillas relayed her understanding the Bell Building
was included at one time and then removed. She was confused why some areas were included and others
were not. Mr. Arista answered it was felt there were not enough businesses on that portion of Bell to
include it in the BID.
Councilmember Bloom referred to Mr. Fleck's comment that this is a self -assessed tax and clarified this
is not a self -assessed tax of the business owners but a tax assessed by the Council. Mr. Taraday answered
it is not a tax; legally it is an assessment imposed by the City after a request from the businesses. The
reason the Council is considering this is because the City received indication there was significant support
for this concept. In that regard, it can be viewed as self -assessed as businesses are asking to be assessed.
Strictly speaking, it is not a self -assessment; it is a City assessment, collected by the City.
Mr. Taraday referred to public comments about the ability to vote on how the money is spent, clarifying
the City Council will make the ultimate decision regarding how the BID funds are expended including
how much is spent on marketing. The Council will not micromanage the expenditures such as where the
advertising will be placed or prepare the advertisement. Businesses have the most say in the work plan
that is recommended to the City Council. The ordinance contemplates that an advisory board composed of
business operators that pay the assessment will make a recommendation to the Council in the same way
the Planning Board makes recommendations to the Council but the Council is not bound by that
recommendation.
Councilmember Bloom commented she is taking this very seriously because she is making a decision on
whether to assess all businesses, even those who have not signed the petition and do not agree with the
formation of the BID.
Mr. Taraday referred to the comment about changing the assessment rate, explaining the assessment
amount is established by the ordinance. A process similar to that used to establish the BID is required to
change the assessment rate, a resolution of intent to change the rate, specifying the proposed change in the
rate and setting the time and place of the public hearing. A rate change can be blocked if protest is made
by businesses in the proposed area that would pay a majority of the proposed increase. Councilmember
Bloom asked if the same process would be followed if the Council chose to lower the assessed rate. Mr.
Taraday answered yes, Section 35.87A.140 addresses changes. Another section of the statute addresses
disestablishment of the BID and a similar process is required. Disestablishment of the BID cannot be
blocked and it is a decision of the City Council.
Councilmember Bloom commented when she became a business owner, she was surprised by how low
the City's license fee was. Businesses pay $125 when they first apply for a business license. Ms. Chase
explained a commercial business pays $125 the first time they apply; a home occupation business pays
$100 and there is a $50 annual renewal fee. Councilmember Bloom asked how those funds are used. Ms.
Chase answered that is the cost of administering the business license program. The review for a business
license is related to code compliance. No funds are set aside to benefit the businesses, it is an
administrative cost.
Councilmember Bloom asked if Council could increase the business license fee by $50 for the 1800
licensed businesses in the City which would generate the same revenue as the BID assessment and use the
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January 15, 2013
Page 17
funds to benefit all businesses in the City for programs such as wayfinding signs. Mr. Taraday explained
there are differences between taxes, fees and assessments. The business license fee requires a fiscal
relationship between the amount of the fee and the costs the fee is used to defray. Cities cannot use
business licensing as a revenue generating device. If a city wants to generate revenue, they adopt a B&O
tax. RCW 35.87A gives a city special assessment power that it does not have the ability to do with a
business license fee.
Councilmember Bloom asked if it would be possible to establish an all -City BID and assess a much lower
fee and use the revenue for the benefit of the entire City. Mr. Taraday answered that would be
questionable because one of the principals behind assessments versus taxes is there is a relationship
between the amount of the assessment and the benefit the person paying the assessment receives. One of
the reasons Seattle has several neighborhood BIDS is it ensures there is a relationship between the
assessment and the benefit. When boundaries are drawn in a neighborhood fashion, the money is
collected and spent for the benefit of the neighborhood. If funds were collected from businesses on
Highway 99 and spent in downtown Edmonds, businesses on Highway 99 may object. Businesses on
Highway 99 could create their own BID. He summarized a citywide BID in a city the size of Edmonds
would be problematic. Mr. Clifton commented Westgate, Firdale, Five Corners, Highway 99 and
downtown are very different; it would be difficult to administer the way the funds would be spent. BIDS
are intended to be a specific geographic area so that the funds collected benefit the businesses within that
geographic area.
Mayor Pro Tern Petso asked whether the public hearing needed to be continued to a date certain. Mr.
Taraday recommended it be continued to a date certain as it makes noticing much easier. A great deal of
money was spent noticing this public hearing and it would be preferable to avoid doing that again. Mayor
Pro Tern Petso asked if the hearing could be continued again if the parties were not ready by the approved
date certain. Mr. Taraday answered it could be continued to another date certain.
Mayor Pro Tem Petso declared a brief recess.
Mayor Pro Tern Petso reconvened the meeting.
COUNCILMEMBER YAMAMOTO MOVED, SECONDED BY COUNCILMEMBER
BUCKSHNIS, TO APPROVE ORDINANCE NO. 3909, AN ORDINANCE ESTABLISHING AN
EDMONDS DOWNTOWN BUSINESS IMPROVEMENT DISTRICT.
Amendment #1
COUNCILMEMBER JOHNSON MOVED, SECONDED BY COUNCIL PRESIDENT PRO TEM
FRALEY-MONILLAS, TO AMEND THE MOTION TO HAVE THE WORK PROGRAM AND
BUDGET AND THE BYLAWS AND POLICIES DONE WITHIN 90 DAYS.
Councilmember Johnson commented that was a doable amount of work in 90 days and the organizing
committee is up to speed on the issues. It is critical to understand the rules before developing the work
plan and budget. Including supporters and skeptics in the process allows all the issues to be addressed and
a plan developed that is reflective of the assessment membership.
Councilmember Peterson asked whether the amendment was in conflict with the RCW. Mr. Taraday
answered there was no State law related to the time requirements. He clarified the amendment was to
change reference in the ordinance to 180 days to 90 days. Councilmember Johnson agreed.
Action on Amendment #1
AMENDMENT CARRIED UNANIMOUSLY.
Amendment #2
COUNCIL PRESIDENT PRO TEM FRALEY-MONILLAS MOVED, SECONDED BY MAYOR
PRO TEM PETSO, TO AMEND THE MOTION TO HAVE A SECOND HEARING ON
FEBRUARY 19, 2013.
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January 15, 2013
Page 18
Council President Pro Tem Fraley-Monillas preferred the Council delay its decision due to the number of
unanswered questions.
Councilmember Peterson raised a point of order, whether Council President Pro Tem Fraley-Monillas'
motion was an amendment. Mayor Pro Tem Petso referred the question to Mr. Taraday who explained
discussion whether to continue the public hearing was appropriate but it was not a proper amendment at
this time.
Action on Amendment #2
COUNCIL PRESIDENT PRO TEM FRALEY-MONILLAS WITHDREW HER AMENDMENT
WITH THE AGREEMENT OF THE SECOND.
Council President Pro Tem Fraley-Monillas commented she was not comfortable with approving the
ordinance tonight as there are a number of unanswered questions. She is 100% supportive of the BID as it
gives business owners the right to direct how funds are used to improve their businesses. She asked for
clarification; if the Council approves the ordinance tonight, businesses that exceed 10% cannot be added
to the BID. Mr. Taraday answered the limitation is 10% per year. If the total assessments based on the
existing boundaries are $90,000/year, additional territory could not be added in one year that exceeds
$9,000 in new assessments.
Council President Pro Tem Fraley-Monillas suggested it may be appropriate to consider what other areas
in the downtown core could benefit from the BID. Another concern was the number of business owners
who allege they have not heard about the BID. She suggested not approving the motion and continuing
the public hearing to February 19.
Councilmember Bloom supported holding another public hearing as she has learned a lot tonight and was
concerned about the questions that have been raised by business owners who have and have not signed
the petition. In talking with business owners she knows, many of whom are located in her building, only
one business owner signed the petition. She also spoke with several retail businesses who signed the
petition; one had questions after receiving the initial information and another had concerns about doing it
now because of the reduction in income as a result of the Main Street project. She recalled asking the BID
committee whether they re -polled the business owners who expressed support and was told they had not.
She was concerned business owners who signed the petition may have changed their minds.
Councilmember Bloom said she will vote against the BID if the Council does not hold another public
hearing because she feels it shows favoritism to the downtown businesses that is not fair to the entirety of
Edmonds. A significant amount of money has been allocated to initiating the process and noticing the
public hearing and more staff time and resources will be allocated to support it. She recalled hearing when
she was doorbelling that many citizens feel most of the City's resources are focused downtown. She
agreed a great deal of resources are focused on downtown as evidenced by the Main Street project, flower
baskets, etc. and the other neighborhoods get very little. She understood each neighborhood could form
their own BID, but felt that was unrealistic because it takes a great deal of time and energy.
COUNCILMEMBER PETERSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS,
TO EXTEND THE MEETING FOR 30 MINUTES. MOTION CARRIED (6-1-0), COUNCIL
PRESIDENT PRO TEM FRALEY-MONILLAS VOTING NO.
Councilmember Peterson spoke in favor of the motion, stating it was important to pass it tonight. He
supports the BID for many of the same reasons Councilmember Bloom opposes it. He agreed it was
difficult to organize a BID and not every business district had the energy to do it which shows the
importance of approving it. He disclosed he is a downtown business owner. He referred to Roger Brooks'
presentation that stated it is time for citizens and business owners to stop relying on city government to do
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certain things. This is a perfect example of a group of dedicated volunteers getting together to create
something that will reduce the need for some City services. The State no longer has a tourism department
and it is up to business owners to develop creative ways to fund activities such as marketing.
Mayor Pro Tern Petso commented if the main motion is defeated, she would prefer a subsequent motion
that continued the public hearing to March 5 in order to provide adequate notice. She understood the
boundaries could be changed in the future and based on the comments made tonight, she hoped the BID
board would consider that. She did not support the main motion tonight because the change in the
boundary seemed to be an obvious change. She understood there were fairly good reasons for not
including some of the properties initially but was uncertain those reasons still exist. She preferred to
continue the hearing to allow additional properties to be added to the BID boundary. There have been
discussions in the past about connecting downtown and the waterfront; forming the BID without the
waterfront does not do that.
Councilmember Johnson commented the BID is a step in the right direction. The businesses that are
assessed can make recommendations to the City Council about the work program, budget, bylaws and
policies. She was in favor of beginning the process, even if it needed minor tweaks in the future. This
represents the traditional retail economy of downtown as well as the service economy which has grown
and expanded. Anything that can be done to strengthen the business community is good.
Councilmember Yamamoto expressed his support for the motion. He asked whether a delay to gather
more information would change Councilmembers' minds. If Councilmembers were open to changing
their minds, he could support another public hearing but he did not think that would happen. The
Council's job is to make a decision.
Council President Pro Tern Fraley-Monillas said she has already made up her mind and supports the BID.
She was interested in more input for the BID from business owners or to correct misinformation.
Mayor Pro Tern Petso said she supported continuing the public hearing not to get more information but to
include additional businesses without the procedural hurdles.
Vote on the Main Motion
MOTION CARRIED (4-3), MAYOR PRO TEM PETSO, COUNCIL PRESIDENT PRO TEM
FRALEY-MONILLAS, AND COUNCILMEMBER BLOOM VOTING NO.
5. AUDIENCE COMMENTS
Donna Breske, Snohomish, expressed appreciation to the City Attorney who spoke with her after last
week's Council meeting. She relayed a concern that staff does not have the necessary training to interpret
mandates for stormwater drainage control. Staff refers to Section 5.4 of the city's Stormwater Code
supplement which includes the words, maximum extent practicable, and from this concludes as a
condition of building permit issuance, stormwater must be diverted from the City pipe system onto her lot
located at 9330 218"' Place SW, to the maximum extent practicable. Section 5.4 does not apply to her lot
as the heading of Section 5.4 is preservation of natural drainage systems and outfalls. Section 5.4 states
natural drainage patterns shall be maintained with run-on and runoff from the project site, discharging
into the location of the natural drainage system to the maximum extent practicable. The definition of
natural drainage system in Edmonds Code Section 18.30.010 states the location of the channels, swales
and other non -manmade conveyance systems. The manmade conveyance system around her lot, installed
in 2002 by the city Public Works Department, does not meet the definition of a natural drainage channel.
Section 5.4 does not apply and staff has taken that 3-word phrase, maximum extent practicable, out of
context. An additional concern is staff has been misled to conclude the city has the right to require her lot
be used as a stormwater repository as a condition of building permit issuance. The lot was retired from
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this temporary use as a stormwater repository in 2002 when the city Public Works Department installed a
stormwater system to the area. She referred to an April 28, 1975 memo from a former Assistant City
Engineer that states no building permit is issued on this lot until storm sewers are installed in the area to
remove the drainage. The pre -condition for development of the lot has been met; there is nothing in city
code, State law or Federal law that gives the City the right to take this lot as a stormwater repository. She
would like to submit for a building permit but was not confident staff will review her application without
bias. She submitted a copy of the memo. Mr. Taraday advised he is working on a written response to her
comments about this property and is hopeful it will be completed within a couple weeks.
Ron Wambolt, Edmonds, commented those who want to delay and schedule additional hearings remind
him of a statement by General George Patton, a good battle plan implemented today is probably better
than a perfect one implemented tomorrow. Mr. Wambolt relayed comments from Dave Page, Edmonds,
that he liked Mr. Artista's comment that the BID is a win -win -win for everyone. He provided an analogy
that Councilmember Buckshnis not being appointed to the Finance Committee was a lose -lose -lose, the
Council loses the best and most prepared person for that position, the staff loses a great ally and citizens
lose a valuable asset. He asked Mayor Pro Tern Petso why Councilmember Buckshnis was not
reappointed. Mr. Wambolt agreed with Mr. Page's comments and asked the same question.
Roger Hertrich, Edmonds, referred to Mr. Wambolt's comments, pointing out this is not a war, the
Council is trying to take care of citizens and ensure everyone is heard. That is the reason for extra public
hearings. With regard to Dayton/SR104, he referred to the family that owns property with a barn on the
east side of SR104. The barn is at the edge of the shoreline today but a number of years ago before SR104
was built, the property was dry. The water backed up after the pipe was installed under SR104 and
installing it too high resulted in water continuing to back up on the property and created a marsh. He
suggested it was a taking due to poor engineering. He suggested the top priority and the most simple
solution would be to lower the pipe and once the lower elevation was established, the marsh would clean
itself out.
Kevin Clarke, Edmonds, asked Councilmember Peterson why his restaurant should pay the assessment
when Arnies and Anthony's did not. He questioned why Harbor Square, zoned General Commercial, was
not included in the BID when the zoning designation was almost the same as BD. The major hotel that
will benefit from the BID was also not included. He found it incredible that the Council could not wait a
few days to consider extending the boundary of the BID. He questioned why the Skippers site was
included in the BID but Arnies and Anthony's were not. If the intent is an Edmonds Downtown BID, he
questioned why many of the businesses who will benefit from marketing will not pay the assessment.
Including those businesses in the future will be much more challenging than if they were included as the
BID was formed. He was incredulous that Harbor Square and Salish Crossing had not been included in
the BID. There was good quality, solid, free business advice provided tonight and there was no downside
to including those businesses in the BID.
Rob Duvall, Edmonds, owner, Revelations Yogurt, commented they were hurt by the Main Street
project but delaying the vote on the formation of the BID would be a bad thing because there is a need to
increase business in that area. He was sorry the Port was not included in the BID but that could be taken
care of over time. It was important to take the vote tonight because the process needs to move forward.
He thanked the Councilmembers who approved the ordinance.
7. REPORT ON CITY COUNCIL COMMITTEE MEETINGS OF JANUARY 8.2013.
Finance Committee
Councilmember Yamamoto reported Council President Pro Tern Fraley-Monillas joined the Finance
Committee. The committee reviewed the November 2012 Monthly Financials. Highlights include the
fund balance in the General Fund is higher than budget and expenses through November are 1.5% below
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January 15, 2013
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budget. Public comments were made by Bruce Witenberg and Ron Wambolt regarding the Risk
Management Reserve Fund and accruals.
Parks, Planniniz & Public Works Committee
Councilmember Johnson reported the committee reviewed Authorization to Advertise for Qualifications
(RFQ) for the Perrinville Creek Stormwater Flow Reduction Retrofit Study which was approved on the
Consent Agenda tonight. During public comment, Donna Breske expressed interest in performing the
professional services for the study.
Public Safety & Personnel Committee
Councilmember Bloom reported the committee discussed the Prosecutor's contract which was approved
on the Consent Agenda.
MAYOR'S COMMENTS
Mayor Pro Tem Petso announced a joint Planning Board and Economic Development Commission
meeting on January 23 to discuss the Strategic Plan. She suggested it be noticed as a special meeting in
the event four or more Councilmembers attend. The Planning Board will hold a public hearing on design
guidelines and building step -backs for the BD2, 3 and 4 zones on February 6.
9. COUNCIL COMMENTS
Councilmember Johnson provided a reminder that Historic Preservation Commission calendars are
available for $5 at Edmonds businesses and on the second floor of City Hall.
Councilmember Bloom advised a scarf left at the December 18 Council meeting can be picked up at the
City Clerk's Office.
10. ADJOURN
With no further business, the Council meeting was adjourned at 10:31 p.m.
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