Loading...
Cm131119EDMONDS CITY COUNCIL APPROVED MINUTES November 19, 2013 The Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Earling in the Council Chambers, 250 5th Avenue North, Edmonds. The meeting was opened with the flag salute. ELECTED OFFICIALS PRESENT Dave Earling, Mayor Lora Petso, Council President Strom Peterson, Councilmember Frank Yamamoto, Councilmember Joan Bloom, Councilmember Kristiana Johnson, Councilmember Adrienne Fraley-Monillas, Councilmember Diane Buckshnis, Councilmember ALSO PRESENT Thea Ocfemia, Student Representative 1. ROLL CALL STAFF PRESENT Al Compaan, Police Chief Stephen Clifton, Community Services/Economic Development Director Phil Williams, Public Works Director Roger Neumaier, Finance Director Carrie Hite, Parks & Recreation Director Rob Chave, Acting Development Services Dir. Rob English, City Engineer Leif Bjorback, Building Official Sarah Mager, Senior Accountant Deb Sharp, Accountant Jeff Taraday, City Attorney Linda Hynd, Deputy City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder Deputy City Clerk Linda Hynd called the roll. All elected officials were present. 2. APPROVAL OF AGENDA COUNCIL PRESIDENT PETSO MOVED, SECONDED BY COUNCILMEMBER YAMAMOTO, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. 3. APPROVAL OF CONSENT AGENDA ITEMS Councilmember Bloom requested Item B be removed from the Consent Agenda. COUNCILMEMBER PETERSON MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO APPROVE THE REMAINDER OF THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: A. APPROVAL OF CITY COUNCIL MEETING MINUTES OF NOVEMBER 12, 2013 C. ACKNOWLEDGE RECEIPT OF A CLAIM FOR DAMAGES FROM DAVID HARB ($407.34) Edmonds City Council Approved Minutes November 19, 2013 Page 1 D. AUTHORIZE MAYOR TO SIGN INTERLOCAL AGREEMENT WITH SNOHOMISH COUNTY FOR CONSERVATION FUTURES GRANT E. AUTHORIZATION FOR MAYOR TO SIGN SUPPLEMENTAL AGREEMENT #8 WITH DAVID EVANS & ASSOCIATES FOR ADDITIONAL ILLUMINATION WORK FOR THE FIVE CORNERS ROUNDABOUT PROJECT F. AUTHORIZATION FOR THE MAYOR TO SIGN SUPPLEMENTAL AGREEMENT NO. 2 WITH THE BLUELINE GROUP FOR ADDITIONAL CONSTRUCTION INSPECTION AND ADMINISTRATION SERVICES G. AUTHORIZATION FOR MAYOR TO SIGN INTERGOVERNMENTAL COOPERATIVE PURCHASING AGREEMENT WITH ALDERWOOD WATER & WASTEWATER DISTRICT H. AUTHORIZATION FOR THE MAYOR TO SIGN THE SRF LOAN FROM THE STATE OF WASHINGTON FOR WWTP SWITCHGEAR PROJECT I. AUTHORIZATION FOR MAYOR TO SIGN HGAC INTERLOCAL CONTRACT FOR COOPERATIVE PURCHASING AGREEMENT J. APPROVAL OF EDMONDS BUSINESSES APPLYING FOR RENEWAL OF THEIR WASHINGTON STATE LIQUOR CONTROL BOARD LIQUOR LICENSE FOR THE MONTHS OF OCTOBER AND NOVEMBER 2013 K. 2014 EMPLOYMENT AGREEMENT FOR EXECUTIVE ASSISTANT TO CITY COUNCIL L. AUTHORIZATION OF LETTER OF SUPPORT FOR POTENTIAL SOLAR GRANT PARTNERSHIP ITEM B: APPROVAL OF CLAIM CHECKS #205410 THROUGH #205492 DATED NOVEMBER 14, 2013 FOR $879,691.64 Councilmember Bloom referred to Voucher 205431, Edmonds Public Facilities District debt service payment of $180,000. She recalled Edmonds Center for the Arts Executive Director Joe McIalwain saying the amount may be less than $180,000, as low as $150,000. She asked why the debt service payment was $180,000. Mayor Earling offered to provide an explanation at the next Council meeting. COUNCILMEMBER PETERSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE ITEM B. MOTION CARRIED UNANIMOUSLY. City Attorney Jeff Taraday asked for clarification of the Council's action, whether no action would be taken on that voucher or an explanation provided at the next meeting. Mayor Earling advised an explanation would be provided at the next meeting. 4. AUDIENCE COMMENTS Ron Wambolt, Edmonds, referred to agenda item 10, amendments to the 2014 budget, and urged the City Council to oppose the amendment that would fund an additional police officer rather than a second assistant chief. The police chief has assessed his needs and available funds and determined reestablishing a second assistant police chief is a higher priority. The position was not cut when the former assistant chief retired; it was temporarily left vacant until the City's financial situation improved. He recommended the Council defer to the police chief s judgment with regard to the police department's staffing needs. With regard to the proposed amendment to bank the 1% property tax increase instead of levying it in Edmonds City Council Approved Minutes November 19, 2013 Page 2 2014, he explained levying the 1% property increase would generate $98,000 in revenue in 2014; an amount the City could do something meaningful with. The cost of the increase to the owner of an average value home ($317,000) is less than $6 for the full year, hardly a meaningful addition to a household budget. He urged the Council to vote against the proposed amendment to bank the 1 % property tax increase. Natalie Shippen, Edmonds, explained three of the five purposes offered in the Edmonds sign code for its existence are related to the prevention of visual clutter. She feared unsightly A -board signs would prevent Edmonds from attracting the selective retail businesses that recent revisions to the code sought. The appearance of A -board signs also do not comply with Roger Brooks' 20 ingredients for an outstanding downtown, one of which is to invest heavily in retail beautification. Edmonds residents have done that but it is marred by downtown merchants. She provided a list of businesses on Main Street between 6t' Avenue and the waterfront that display A -board signs. She recommended the sign code be revised as part of the code rewrite, asserting the sign code does nothing, it is not enforced and it is not restrictive. Roger Hertrich, Edmonds, began to voice an opinion regarding last week's closed record review. Mr. Taraday advised that matter was quasi-judicial matter and the Council has been instructed not to discuss it. Mr. Hertrich referred to Friday's accident on the train tracks that resulted in 4-hour delay on the waterfront and recommended developing a single lane emergency vehicle access which could also be used to slowly offload the ferry. He envisioned a single lane emergency access could be developed much faster than any other option and would be the most effective. Bruce Witenberg, Edmonds, Vice Chair, Economic Development Commission and member of the Highway 99 Task Force, said his comments were his personal views. He relayed disappointment in the Council's handling of the budget amendment process, not vetting the proposed amendments by Council committee. He took issue with two budget amendments proposed by Councilmember Fraley-Monillas, temporary part-time Council staff to coordinate strategic plan times and temporary part-time Council contract staff to coordinate the economic redevelopment of Highway 99, and one budget amendment proposed by Councilmember Bloom, a half-time volunteer coordinator. He relayed staff has effectively and efficiently supervised volunteers for the 20+ years he has been involved as a volunteer. The City has a highly qualified staff that is collectedly paid several million per year. He recognized the excellent work done by Stephen Clifton working with a consultant on the strategic plan and his continued efforts with stakeholders. Councilmember Fraley-Monillas' assertion that very little has been completed with the strategic plan is misleading; the Council adopted the strategic plan in April 2013. The EDC and its subgroups spend hundreds of hours working on the strategic planning process and passed a resolution to initiate a stakeholder discussion about a facilitation process for the strategic plan. An initial meeting of stakeholders will be held in early December. The Highway 99 Task Force and staff have done an excellent job working on Highway 99; next year the Planning Board will discuss Highway 99 zoning issues and a permanent Development Services Director will make further recommendations. He recommended waiting until those efforts are complete. Implied in Councilmember Fraley-Monillas' budget amendments is distrust by some Councilmembers in staff. The amendments are short-sighted, a waste of $120,000 of taxpayers money, and an effort by some Councilmembers to continue to drive a wedge between staff and Council rather than working cooperatively. He recommended these proposed amendments not be adopted. David Arista, Edmonds, representing the Downtown Edmonds Merchants Association (DEMA) invited the public to the annual tree lighting ceremony on November 30 at 4:30 to 5:30 p.m. The event is sponsored by DEMA and the Edmonds Chamber of Commerce. DEMA also sponsors the Halloween trick or treat which was attended by thousands of Edmonds residents. He recognized DEMA and the merchants who contribute thousands to local schools, charity events, Edmonds Center for the Arts, Edmonds Edmonds City Council Approved Minutes November 19, 2013 Page 3 Museum and other organizations in the City. He relayed 90% of the merchants who work in downtown Edmonds are also residents. Don Hall, Edmonds, reminded of the Third Thursday Art Walk this Thursday from 5:00 to 8:00 p.m. and First Dibs when many stores will be open and offering refreshments and great buys. 5. PUBLIC HEARING AND POTENTIAL ACTION ON THE 2014-2016 UTILITY RATES ORDINANCE Public Works Director Phil Williams explained the City's utility is comprised of sewer, water and stormwater. Sewer He commented on the sewer rate history: • No rate increase in the last 9 years (2004) • Only adjustment in the last 9 years was a 2.4% decrease in 2006 He provided a comparison of current sewer rates: Seattle $116.50 Kirkland $ 91.15 Ronald Wastewater District $ 75.14 Arlington $ 70.15 Woodinville Water District $ 65.77 Mukilteo Water & Sewer District $ 57.59 Lake Forest Park $ 55.44 Redmond $ 52.89 Alderwood Water & Wastewater $ 51.46 Lynnwood $ 39.57 Everett $ 34.94 Edmonds $ 27.85 Olympia View Water & Sewer District $ 23.66 He displayed a spreadsheet from the recently adopted Sewer Comprehensive Plan of sewer revenues and expenses 2013-2019 that illustrates a 9.5% annual rate adjustment over six years that would allow the City to become independent of the use of debt to finance pipe replacement. The recommendation is a 9.5% annual rate adjustment for three years; the last three years can be adjusted as necessary. Under this option, Edmonds' rates in the above comparison would increase to $48.01. He noted the above chart represents current sewer rates and does not reflect any increases in a three year period. Water Mr. Williams explained the current Water Comprehensive Plan assumes 7.5% rate adjustments each year to provide capital for waterline replacement. Three years of waterline replacement, 20,000+ lineal feet, have been completed. Replacing 1 % of the City's waterlines per year will take 100 years to complete. He displayed a comparison of current water rates: Shoreline $72.35 Lake Forest Park $72.35 Woodinville Water District $62.78 Seattle $59.65 Arlington $52.73 Kirkland $47.94 Alderwood Water & Wastewater $40.93 Edmonds City Council Approved Minutes November 19, 2013 Page 4 Edmonds $40.45 Mukilteo Water & Sewer District $40.44 Olympic View Water & Sewer District $38.10 Everett $30.24 Lynnwood $28.87 Average $48.02 He displayed a comparison of Edmonds' water consumption CCF 1996-2011 that illustrates a downward trend, approximately a 13% reduction, in water consumption, which has an effect on revenue. The utility purchases water for $1.05/unit and sells it for $2.30/unit; the $1.25 difference is used to operate the utility. He displayed a spreadsheet of water revenues and expenses 2013-2019 that illustrated a 9% annual rate adjustment over six years that would allow the City to become independent of the use of debt to finance waterline replacement. Under this option, Edmonds' rates in the above comparison would increase to $67.84. He noted the above chart assumed the other entities did not increase their rates. Stormwater Mr. Williams explained the current Water Comprehensive Plan assumes 8% rate adjustments each year; that is not yet necessary. He displayed a comparison of current stormwater rates: Seattle $24.09 Kirkland 16.77 Redmond 15.56 Everett 13.06 Lake Forest Park 12.67 Edmonds 12.44 Shoreline 12.14 Lynnwood 8.33 Mukilteo Water & Sewer District 8.32 Woodinville Water District 7.26 Arlington 6.89 Average $12.60 He displayed a spreadsheet of stormwater revenues and expenses 2013-2019 that illustrated a 4.5% annual rate adjustment for six years. Under this option, Edmonds' rates in the above comparison would increase to $16.20. Mr. Williams displayed a comparison of a total utility bill: City Current 2016 Projected @ 3%/year for all other cities; Edmonds at recommended rates Seattle $200.24 $218.81 Shoreline $159.63 $174.43 Kirkland $155.86 $170.31 Lake Forest Park $140.46 $153.48 Woodinville $135.81 $143.40 Arlington $129.77 $141.80 Redmond $106.92 $115.83 Mukilteo $106.35 $116.21 Edmonds $ 80.74 $103.15 Everett $ 78.24 $ 85.49 Edmonds City Council Approved Minutes November 19, 2013 Page 5 Lynnwood 1 $ 74.81 1 $ 87.17 He relayed staff s recommendation to transition to cash funding for sewer line replacement/rehab, water line replacement and current stormwater capital needs. By transitioning from debt financing of pipe replacements for water and sewer to using rate capital, ratepayers will save over $50 million in interest payments between now and 2033. That $50 million will go to infrastructure replacement rather than investment bankers. Councilmember Fraley-Monillas recalled Mr. Williams' statement regarding the purchase and sale price of water and asked whether the difference was profit or was it used to pay overhead. Mr. Williams answered the purchase price of water is $1.0486 and the sale price is $2.30 in addition to a flat monthly fee. The $1.25 difference pays for the cost of operating and maintaining the City's water system. Councilmember Fraley-Monillas commented it initially sounded like the difference was profit. Mr. Williams assured there is no profit involved. Councilmember Buckshnis referred to the comparison of a resident's total utility bill, where the cost increases from $80.74 to $103.15, pointing out the $22.41 increase would occur over 3 years, approximately an increase of $7.50 per month per year. Mr. Williams agreed. Councilmember Buckshnis spoke in favor of not continuing to incur debt for pipe replacement. Mr. Williams explained he reworded the title of the column in the above chart to clarify the 3% increase was projected for the other cities, not Edmonds. Councilmember Yamamoto asked how much costs have increased in the past nine years. Mr. Williams answered the goal in water has been to keep pace with increases in the cost of labor and supplies. That has not been done in sewer; rates have not been adjusted for ten years. Costs have increased a great deal during that time and fund balance has been used to meet that need. Mayor Earling opened the public participation portion of the public hearing. Ron Wambolt, Edmonds, acknowledged the motive for the utility tax increase, not paying interest on bonds issued every couple years. He anticipated in today's economy with small pay increases and even smaller interest rates, many citizens would find increases of 9.5% a hardship for each of the next 3 years. He compared bond interest to interest on a mortgage and suggested it may be reasonable for the City to continue to borrow at least some money to fix pipes. His research found from 2007 to the projected rates in 2013 a compound average growth increase of 6.4%. He urged the Council to reduce the increase to a more reasonable amount. Roger Hertrich, Edmonds, referred to the comparison of a resident's total utility bill, commenting the increase from $80.74 to $103.15 is likely the largest increase of any city. He asserted the proposed increase would put a hardship on residents who already have a hard time paying their bills. He suggested returning to a reasonable inflation rate rather than an excessive inflation rate. He understood the reason for the higher increase but feared the impact it would have on people having difficulty paying their bills. Hearing no further comment, Mayor Earling closed the public participation portion of the public hearing. Councilmember Fraley-Monillas asked if there was a low income discount. Mr. Williams answered yes, the City follows the State's definition of low income. A resident with a combined household income of $25,000 or less qualifies for a 50% reduction in utility payments to the City; a combined household income of $30,000 qualifies for a 30% reduction. Edmonds City Council Approved Minutes November 19, 2013 Page 6 Councilmember Buckshnis referred to a meeting Mr. Williams and Mayor Earling had with the Borofkas who recommended a 6.5% increase. She asked whether a 5 - 6.5% increase over 6 years would allow the City to become independent of the use of debt. Mr. Williams answered no, the rate adjustment is projected for six years; his initial recommendation is for three years and adjusting the rate if necessary the last three years, possibly lowering the increase the last three years. Councilmember Fraley-Monillas asked how long it would take to become independent of the use of debt with a 6% per year rate adjustment. Mr. Williams answered the two options in the Sewer Comprehensive Plan is the best illustration; to become debt independent over a six year period, the planning horizon for the utility Comprehensive Plans, requires a 9.5% increase. Raising rates 6.5% would fund the capital program but make no progress on becoming debt independent and there would be 3 more borrowings between now and the end of 6 years. The City is on a pace to borrow every two years; that will still be done but with the proposed increases, the amount that is borrow each time will decrease to a point in six years where no further borrowing would be required. Councilmember Fraley-Monillas observed even with a 9% increase, there will still be borrowings. Mr. Williams responded two additional borrowings will be done during the six years, the first somewhat smaller and the second quite a lot smaller. Mr. Williams recognized this was a difficult decision; in the end it doesn't make sense to borrow for pipe replacement. He compared it to borrowing money for groceries or gas, something that is done annually. At some point the debt will accumulate to the point the equity markets may not like it. Councilmember Fraley-Monillas asked how long the City had been borrowing. Mr. Williams answered the concept of actively replacing pipes originated in the 2009-2010 plan; there was no active program for pipe replacement before that time. The first revenue bonds were in 2011, the second in 2013, again in 2015 and again in 2017. Council President Petso recalled one of the things that was considered to minimize the impact on the customer was the possibility of doing one utility at a time. She asked why staff did not recommend that approach. Mr. Williams commented it would take 6 years to get each utility independent of debt, a total of 18 years with multiple borrowings for all three utilities. He found that too long to achieve that goal. He acknowledged the length of time to be independent of debt could be extended somewhat such as seven years. Councilmember Bloom observed the projections are based on annual increases for three years, but it would require three additional years to discontinue borrowing. She also observed staff was unable to project the rate increase beyond three years. Mr. Williams explained although a consultant assisted with the projections, the projections need to be reassessed at the end of three years. He noted a revenue requirement analysis is done for each utility every year. Councilmember Bloom inquired about the interest savings. Mr. Williams answered between now and 2033, the end of the 20 year period when debt would be paid off, the savings would be over $50 million. Councilmember Bloom asked if the savings that were put into infrastructure were considered. Mr. Williams answered they were. She observed no matter what, rates will have to be increased. Mr. Williams answered yes, assuming it is the Council's direction to pursue the projects in the Comprehensive Plan such as replacing 1% of the waterlines annually. He preferred to do that from current income, pointing out every dollar that is not paid in interest is another dollar that can be invested in infrastructure. Councilmember Bloom asked how long it takes for a watermain to wear out. Mr. Williams answered there are not a lot of good technologies to electronically diagnose when/where a waterline will fail such as video cameras used in sewer pipes. He was confident a pipe installed today would last 100 years, Edmonds City Council Approved Minutes November 19, 2013 Page 7 assuming there were no problems in the soil, no seismic problems, etc. Councilmember Bloom asked if a 20-year old pipe would be viable for 100 years. Mr. Williams answered replacement of old steel pipes has been completed. Most of the City's pipes are cast iron, some are ductal iron. Cast iron pipes, installed up into the 60's and early 70's, are very brittle; any settling, seismic movement, even freeze/thaw cycles can cause them to crack. Once a cast iron pipe cracks, they completely fail, resulting in a watermain break gushing in the street. Some pipes need to be replaced because they are under -capacity and do not provide sufficient fire flow to meet current standards. Most of the City's waterlines are 50+ years old. A 20-year old pipe is viable; pipe replacement begins with the oldest pipes, pipes in the most corrosive soils, history of main breaks/failures. If the Council approved the rate adjustment, Councilmember Buckshnis asked whether the Council could change it next year. Mr. Williams answered yes. Councilmember Buckshnis reiterated there is a low income discount available to those who meet the qualifications. Mr. Williams advised residents can contact the City's utility billing department to apply. Councilmember Johnson said the 1 % replacement over 100 years is a reasonable approach and debt financing payment is a reasonable approach. The actual differential between the current rate, $80.74, and the proposed rate in 3 years, $103.15 is $266 per household per year over the 3 year period, an amount that caused her concern. She suggested the City be as lean as possible and try to keep rates as reasonable as possible. Mr. Williams referred to a letter the City received from Mr. and Mrs. Borofka that asked good questions and caused staff to review how the estimates were prepared. With the level of detail available on the proposed projects, and no information regarding underground risks, a 30% contingency is not unreasonable. Rates are not based on those estimates; when design is completed, the project is put out to bid and the low bid accepted, a 10-15% contingency is retained. If as the Borofkas suggested projects estimates exceeded that actual cost, rates can be lowered at the end of the three year period. Councilmember Johnson found the comparison to other cities interesting but not as significant as comparison to the past. She suggested trend analysis be prepared for future rate discussions COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER PETERSON, TO APPROVE ORDINANCE NO. 3945, AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING THE PROVISIONS OF SECTION 7.30.030 WATER RATES — METER INSTALLATION CHARGES, RELATING TO UTILITY RATES OF WATER SUPPLIED THROUGH METERS, THE PROVISIONS OF SECTION 7.30.040 UTILITY CHARGES — SANITARY SEWER, RELATING TO UTILITY RATES OF UNMETERED SANITARY SEWER SERVICES, AND THE PROVISIONS OF SECTION 7.50.050 RATES AND CHARGES, RELATING TO UTILITY RATES FOR STORM AND SURFACE WATER MANAGEMENT SERVICES, IN ORDER TO INCREASE SUCH RATES. Councilmember Peterson supported increasing the rates for all three utilities at the same time due to the proof the Public Works Department has shown in their ability to combine and coordinate projects such as considering replacement of a waterline at the same time as sewer or stormwater pipe. Increasing all three rates at the same time provides the ability to continue that trend. Not raising sewer rates for the past nine years may require paying for sins of the past. The need for infrastructure repair in Edmonds and around the country is an incredible burden all citizens face. Edmonds has an opportunity to look at the long term viability of the infrastructure, one of the most important things the Council can do. Councilmember Bloom appreciated that the Council could change its mind and lower rates in the future but felt the increase could start lower and increase in the future. She did not support the motion, finding it Edmonds City Council Approved Minutes November 19, 2013 Page 8 too high a rate increase for citizens to absorb at this point. She was not convinced that the economy was recovering quickly and felt a lot of citizens are still suffering. Councilmember Fraley-Monillas agreed with Councilmember Johnson regarding the overall cost to citizens over a 3 year period, approximately $270 or $90/year. She acknowledged it was probably a reasonable increase and recognized pipes needed to be replaced, but was not comfortable with that much of an increase. She was more comfortable with a 6% increase. She did not support the motion. UPON ROLL CALL, MOTION CARRIED (4-3), COUNCILMEMBERS JOHNSON, PETERSON, YAMAMOTO, AND BUCKSHNIS VOTING YES; COUNCIL PRESIDENT PETSO AND COUNCILMEMBERS FRALEY-MONILLAS AND BLOOM VOTING NO. 6. PRESENTATION AND POTENTIAL ACTION ON THE PROPOSED EDMONDS DOWNTOWN BUSINESS IMPROVEMENT DISTRICT WORK PROGRAM AND BUDGET FOR YEAR 2014 Community Services/Economic Development Director Stephen Clifton introduced Mr. Arista and Mr. Rucker. David Arista, President, Interim Edmonds Downtown Business Improvement District (EDBID), identified the members of the volunteer EDBID Interim Members Advisory Board: • Steve Balas, Waterfront Coffee • Juliana Van Buskirk, Edward Jones • Kevin Clarke, Clarke Consulting Group • Cadence Clyborne, HDR Engineering • Chris Fleck, Puget Sound Tax Services • Sally Merck, Sally Merck Counseling • Paul Rucker, Saetia • Mary Kay Sneeringer, Edmonds Bookshop • Pam Stuller, Walnut Street Coffee • Kim Wahl, Reliable Floor Coverings Mr. Arista recognized the board members for their work in recent months as well as in the past several years. He reviewed implementation of the 2103 Work Plan: • Non-profit organization formation • Edmonds Community College Business Survey Program and Partnership • Member Meeting — September • Member Outreach • Branding & Identity RFP and Consultant Selection • Working with Parking Committee, hope to conduct a Parking Survey • Assessment Collection, 90% success rate • 2014 Planning Paul Rucker, Co -Owner, Saetia, EDBID Board Member, reviewed the proposed 2014 Work Plan: • Non -Profit Organization and 501(c)(3) Status • Administration • Assessment & evaluation • Member engagement & outreach • Business & civic collaboration and outreach • Branding, identity and marketing • Professional business resources Edmonds City Council Approved Minutes November 19, 2013 Page 9 • Parking appearance and environment • 2015 planning Mr. Rucker reviewed proposed 2014 budgeted expenditures: Estimated revenue $89,000 Estimated expenditures: District Association admin $10,000 District Association insurance and licensing $ 3,000 Branding/identify and marketing $50,000 Member engagement and outreach $ 5,000 Professional business resources $12,000 Appearance and environment $ 5,000 Estimated total 2014 expenditures $85,000 Mr. Rucker explained the fund balance carryover from 2013 is currently unallocated. Approximately $45,000 was received in assessments; there were no administration expenses in 2013 and only approximately $1,000 was expended. The EDBID plans to hire part-time assistance in 2014 to assist with mailings and communication but the majority of the work will still be done by volunteers. The branding initiative and RFP are the EDBID's most significant initiative. The co-chairs of the branding initiative, Cadence Clyborne and Pam Stuller are present to provide details on that process. Councilmember Peterson asked how close the EDBID was to selecting a consultant for the branding initiative. Cadence Clyborne, HDR Engineering, explained they are in the process of interviewing three firms. Following the interviews they will do reference checks and either make a final decision or repeat the process. She anticipated a decision would be made mid -December with the hope of having a consultant under contract by January. Councilmember Buckshnis complimented the members of the EDBID, recognizing the work they do in addition to their work and family commitments. COUNCILMEMBER PETERSON MOVED, SECONDED BY COUNCILMEMBER YAMAMOTO, APPROVAL OF THE EDMONDS DOWNTOWN BUSINESS IMPROVEMENT DISTRICT WORK PROGRAM AND BUDGET FOR YEAR 2014. MOTION CARRIED UNANIMOUSLY. Mayor Earling remarked on the amount of time the EDBID members have devoted, noting the success they received via a 7-0 Council vote was well warranted. He expressed his appreciation for the work the EDBID has done. 7. DISCUSSION AND POTENTIAL ACTION ON THE 2014 ENGINEERING AND DEVELOPMENT SERVICES FEES RESOLUTION Acting Development Services Director Rob Chave explained development fees have not been updated since 2009. Over the last year staff considered costs versus fees and found the City's fees were relatively low compared to other jurisdictions which indicated it was worthwhile to analyze the cost structure of the fee system. That analysis found the fees, particular rates for staff time, were not capturing overhead costs. He noted the cost of permits, inspections, etc. is not just the staff time but everything that supports staff such as vehicles, the physical building, communications equipment, etc. which were not been factored into the fee structure in the past. In reviewing a State auditor's report, staff found numerous costs that were could be factored into the fees. Staff concluded the overhead charges should be captured and detailed calculations developed substantially higher hourly rate, approximately $90/hour, which translated into higher fees. Edmonds City Council Approved Minutes November 19, 2013 Page 10 The proposed fee schedule contained was reviewed by the Parks, Planning & Public Works Committee and forwarded to the Council for approval via resolution. The Council has approved fees in the past by resolution rather than ordinance. Nearly all the fees are increasing with only a couple exceptions. For example, the overall fee for approval of a PRD is not decreasing, it is actually increasing, but the breakdown between preliminary approval and final approval was changed. Most building fees, particularly the large ones, are staying about the same; staff found Edmonds' relative costs were similar to other jurisdictions. Fees are increasing for building related items that are hourly based rather than value based. Mr. Chave relayed engineering's analysis also resulted in modifications to their fee structure. The intent in the future is to analyze fees every other year. Councilmember Buckshnis observed the fee for blade signs has decreased which seems to encourage blade signs. She inquired about the fee for an A -frame sign. Mr. Chave answered the City does not charge for an A -frame sign because they are classified as temporary signs; only permanent signs are charged a fee. The code allows A -frame signs to be displayed for a limited amount of time during the year; the problem is how to monitor that. Historically A -frames have been part of the business infrastructure in neighborhood commercial districts and downtown. Free speech issues related to signs require that commercial speech be treated consistently. The City's sign code is very complicated and confusing and it would be worthwhile to simplify and reexamine some of the provisions. Councilmember Bloom asked what ESLHA meant. Mr. Chave answered it is earth subsidence and landslide hazard area; previously known as the Meadowdale area. A study was done several years ago that renamed it ESLHA, an area prone to slides that has a certain underlying geology. Councilmember Bloom referred to the $120 solar fee and asked what was involved in permitting solar panels. Mr. Chave answered at one time the overall value of the installation was used to determine the fee which resulted in a very high fee. This is an attempt to set a more accurate fee relative to the actual review time. Typically solar installations are prefabricated units and the review time is minimal. Commercial installations will still be treated differently than residential; the $120 fee is for small scale residential installation. Staff participated in a grant program with the Department of Energy and other cities regarding eliminating barriers to solar installations. Councilmember Bloom asked the previous cost of a blade sign permit. Mr. Chave answered it was the same as the other sign fee plus potentially a design review cost. A change was approved in the code last year to encourage blade signs; they no longer count in a businesses' overall sign area. Because blade signs can be 4 square feet and hung in a certain way, the review time is very short. If the EDBID wanted to establish a consistent blade sign, Councilmember Bloom asked whether the fee could be reduced. Mr. Chave answered the process was simplified and the fee reduced for a blade sign. When the sign code is revised, he anticipated working on solutions with the business communities to avoid a proliferation of A -frame signs. A -frames have never been banned outright; there are generalized rules that are obeyed for a period of time. Staff periodically clamps down on A -frame signs when they begin multiplying and the rules are not adhered to. Councilmember Bloom asked how the hourly rates were established, whether it was based on other cities fees. Mr. Chave answered it was an average of the employees' salaries and benefits plus the overhead that supports that employee such as the Clerk's office, vehicle maintenance, building maintenance, finance, etc. He noted the $90/hour rate was still relatively low compared to other jurisdictions; many are over $100, even $150 or more. It will be worthwhile to consider it again in the next two years. Councilmember Bloom referred to the fee for amateur radio. Mr. Chave answered that is an amateur radio antenna; they can be tall and there are specific rules. They require a permit and may require Hearing Edmonds City Council Approved Minutes November 19, 2013 Page 11 Examiner approval. The fee is set low because the FCC advises jurisdictions not to create barriers and to have the fee low and the process not be invasive. Councilmember Bloom referred to a developers agreement in the engineering fees. City Engineer Rob English answered a developers agreement is used when the City is working with a developer; for example if there is a requirement for a sidewalk and it was agreed to build the sidewalk in a different location to better serve the City. A developers agreement would be a mechanism to document that decision. An initial fee is charged plus whatever staff time is required to develop the agreement. Councilmember Bloom asked about a latecomers agreement. Mr. English explained when improvements are made and charges paid by a developer or property owner, the latecomers agreement allows transfer of those charges to someone who buys into the system at a later date. Public Works Director Phil Williams provided an example: a developer pays to install a sewer line on a street and an agreement is reached whereby future users of the sewer line on that street contribute later and the developer receives payment from those users. Councilmember Bloom inquired about LID sewer fees. Mr. Williams answered the City has a considerable role when a Local Improvement District is formed for sewer installation and the costs are paid by the members of the district. Mr. Chave advised the fee schedule is labeled Exhibit 1; it should be Exhibit A as referenced in the resolution. Councilmember Johnson advised the Historic Preservation Commission (HPC) recently discussed the for building demolition fee. The current demolition fee allows for immediate action and the purpose of the HPC is to preserve history. The HPC plans to discuss the demolition fee further to consider the HPC's interests. Mayor Earling advised the Council could adjust the fee in the future based on the HPC's recommendation. Councilmember Buckshnis referred to the proposal for a green room in City Hall, incentives for solar, etc., and asked if the fees reflect interest in a greener Edmonds. Mr. Chave answered some fees are kept low to ensure citizens obtain the permit; if fees are too high relative to the value of the item, residents will avoid getting a fee. Solar is a good example. He suggested Councilmember Buckshnis' suggestion be considered in the next revision of fees. This effort was modernizing the fee structure; the next stage could include incentives; for example a green development gets a break in the fee. COUNCILMEMBER PETERSON MOVED, SECONDED BY COUNCILMEMBER YAMAMOTO, TO APPROVE RESOLUTION 1302, ADOPTING UPDATED FEES FOR 2014. Councilmember Peterson thanked staff for analyzing the fees. Observing fees are payment for a specific City service, he cited the importance of the fees in recovering as much of the cost and not pass the cost on to the general taxpaying public. The building community and residents making improvements receive good value from staff as well as improvements that have been made on the second floor. MOTION CARRIED UNANIMOUSLY. Mayor Earling complimented staff, explaining several months ago numerous meetings were held regarding fee revisions. The updated fees reflect the work done by staff and their cooperative effort. 8. 2013 SEPTEMBER BUDGETARY FINANCIAL REPORT Edmonds City Council Approved Minutes November 19, 2013 Page 12 Finance Director Roger Neumaier advised a variety of reports have been added at the request of Councilmembers and the public to ensure there were clear, graphic representations of information. General Fund revenues continue ahead of budget; property tax revenue has come in earlier and may be due to sales of property, making it difficult to project the yearend variance, but it may be as much as 3%. General Fund expenditures are on track for a 2% under -expenditure. Fees for water, sewer and stormwater are on track or slightly ahead of budget. REET revenues are projected to exceed budget by 40%. Mr. Neumaier explained the Puget Sound area is one of the strongest in the country and recovered more quickly than other areas. The 800 lbs. gorilla not mentioned in the report is how important Boeing is to the region, including where the 777X is built. Any major change in terms of Boeing's role of in Puget Sound in the next decade will impact Edmonds' economy. 9. 2013 NOVEMBER BUDGET AMENDMENT Finance Director Roger Neumaier explained departments are periodically given an opportunity to adjust their budget projections and account for changes that have occurred via requests for additional funding or changes to their budget. In addition to a variety of smaller adjustments, there are two major amendments: 1. Making budgetary changes to accommodate bonds sold earlier this year and payments in December 2. Changing the concept of transfer from Utility Funds to reimbursement for services (a correction the auditor recommended) Councilmember Buckshnis referred to the budget amendment related to engineering benefits and asked Mr. Neumaier to explain why it is necessary to move a utility person to the General Fund. Mr. Neumaier explained the City has a separate fund for fleet; for example if he drives a car, his department pays a fee to the Fleet Fund to reimburse it for the expenditures. Many smaller cities do not have a Fleet Fund, it is included in the General Fund. Maintenance in many cities is in the General Fund and in some it is a separate internal service fund. In this instance, the Utility Funds, Parks, and Streets use engineering services; instead of having a separate engineer for each fund, they share those services. The concept is to use the General Fund in place of a separate internal service fund. Decision Package 35 moves a position that Public Works intended in 2013 to include in the General Fund to provide those services; it was put into the Utility Fund. Public Works has provided those services from another position in the General Fund. The additional amount in the budget amendment reflect the additional employee hours that were worked out of the General Fund in 2013 and changing benefit expenditures out of the Utility Funds into payments to the General Fund. It is an efficient way of sharing services between the funds that use engineering services. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER PETERSON, TO APPROVE THE NOVEMBER 2013 BUDGET AMENDMENT. MOTION CARRIED UNANIMOUSLY. Mayor Earling declared a brief recess. 10. PROPOSED AMENDMENTS TO THE 2014 CITY OF EDMONDS BUDGET Finance Director Roger Neumaier explained the process tonight will be to review the amendments individually and allow discussion. During discussion Councilmembers can amend or retract their amendment but the intent is not to vote on amendments tonight. At the November 26 meeting Council will discuss and narrow the amendments to those they would most like to approve. December 3 will be a final review of the amendments and the proposed budget and adoption of the budget. He referred to the Edmonds City Council Approved Minutes November 19, 2013 Page 13 spreadsheet of proposed amendments to the 2014 Edmonds recommended budget which has been updated on a daily basis. Mr. Neumaier reviewed the following amendments: Council Revenue Amendments • Bank 1% Property Tax Instead of Levying in 2014 o Assumes alternative property tax ordinance (banking) would be passed by the Council o $98,000 revenue reduction Council President Petso explained she proposed this amendment; if the revenue is not needed, she was inclined to leave it with citizens and take it when it was needed in the future. The outcome of other proposed amendments may determine whether this revenue is needed as the amendments proposed by Council equate to $650,000 in one-time expenditures. • Eliminate Decision Package #35 —Create a New Capital Project Manager in General Fund o $97,286 Councilmember Buckshnis requested this be removed. Following discussion with Ms. Hite, Mr. Williams and Mr. Neumaier, she understood this was a renaissance engineer and needs to be in the General Fund. • Development Services Building Professional Services Information omitted from recommended budget o Consultant review services for building structure reviews that require outside expertise o $32,000 expenditure Decision Package Modifications • Eliminate Decision Package #5 — Non -Departmental Longevity Program o $31,900 expenditure reduction Councilmember Buckshnis preferred to consider this next year and not part of the budgetary process because there are other alternatives. • Decision Page #16 — an additional policeman rather than another assistant chief o $10,067 expenditure reduction Council President Petso invited Police Chief Compaan to explain why he recommended an administrative position rather than a patrol officer. Police Chief Al Compaan explained there are two FTE decision packages in the police department, both for commissioned positions. A total of five positions have been cut in the police department over the past five years. He has requested reinstatement of two of those positions, one of which is an assistant police chief. The department structure was already administratively lean and has operated for approximately 35 years with a chief and two assistant chiefs. It has been difficult to provide adequate administrative and executive oversight for a department of Edmonds' size with the current lean staff, him and one assistant chief. No other department of Edmonds' size in the Puget Sound area has this structure. His strong recommendation as the City's Police Chief as well as his professional opinion is that for proper oversight, risk management, disaster preparedness, and smooth departmental operations is to reinstate the second assistant police chief position. He assured he did not want to add positions for the sake of adding positions, particularly ones that could be viewed as bureaucratic; he viewed this as a necessity. Council President Petso commented the amendment is a two-part amendment, to add an officer on the street instead of an assistant police chief. She asked Chief Compaan to address the City's street officer count. Chief Compaan explained the two proposed decision packages are for two commissioned Edmonds City Council Approved Minutes November 19, 2013 Page 14 positions. The department presently has 51 commissioned members including one chief and one assistant chief. If both decision packages are approved, two entry level officers will be hired; the $10,067 decision package is the cost to promote a sergeant to assistant chief. The net effect will be one additional police officer on the street for patrol and a sergeant promoted to assistant chief. Councilmember Buckshnis explained she has met with citizens and is primarily the messenger for this amendment; citizens want to have another officer on the street. Chief Compaan explained the department currently has 51 commissioned officers that include the chief, assistant chief, detectives, traffic officers; the remainder are assigned to patrol. An effort has been made to put officers on the ground/boots on the street but he would not be requesting the assistant chief if it was not needed. Councilmember Buckshnis commented there have not been as many boots on the ground because there have been officers on leave, etc. Chief Compaan acknowledged people retire, are injured, etc. and the department rarely has 51 available for duty for a variety of reasons. Councilmember Fraley-Monillas asked whether Chief Stern had two assistant police chiefs. Chief Compaan answered he did. Councilmember Fraley-Monillas asked how many less staff are in the department compared to 10 years ago. Chief Compaan answered there were approximately 85 on the payroll 12 years ago including the reserve unit and hospital unit. Councilmember Fraley-Monillas observed the police force had been reduced by approximately'/4 since that time. Councilmember Peterson commented some middle management has disappeared over the years and the supervisor function has fallen on the chief and the assistant chiefs. If there is any group of employees that must have excellent supervisory capacity, it would be the police department. The City has had an incredible group of officers but things can go south quickly without training and consistent supervisory role. Chief Compaan explained the Edmonds Police Department has a very compressed structure: a chief, one assistant chief, no captains, no commanders, no lieutenants, the next rank is sergeant. Mid -level management function is conducted for the most part by the one assistant chief with some duties done by sergeants. Sergeants have duties in the City's police department that would be done by a lieutenant or captain in other police departments. Police work has not gotten any simpler and it is important to provide adequate administrative oversight. At the present time the level of oversight and responsiveness to internal clients (police officers) is not what it should be because the department is short staffed at the executive level. Councilmember Bloom asked why the City's police department did not have any lieutenants or captains. Chief Compaan answered the department has operated efficiently over the years with a compressed command structure. When he started in 1978, there was a chief, one assistant chief and a captain. The captain position changed to an assistant chief position in about 1980. There were only about 30 police officers at that time; the maximum has been 56 and the department is now down to 51. Councilmember Bloom observed a lieutenant or captain are supervisory not boots on the ground. Chief Compaan answered that is generally correct. Councilmember Bloom asked if there was ever a position that does both, supervisory and boots on the ground. Chief Compaan answered not in this department although the assistant chief and he get called out at night for SWAT calls or other critical incidents. Councilmember Bloom asked if there was anyone else on the force that can provide the on -call coverage. Chief Compaan answered no. Councilmember Johnson recalled Chief Compaan was recognized for 35 years of service on the Edmonds Police Department. She preferred to defer to his judgment regarding what he felt he needed to operate the police department. She expressed support for the additional assistant police chief as well as DP 49, one Edmonds City Council Approved Minutes November 19, 2013 Page 15 entry level police officer for the Street Crime Unit. She summarized these decision packages provide an opportunity to rebuild the police department to previous levels. • Eliminate Decision Package #18 — Online Communications via Facebook, Google and YouTube o $4,800 Council President Petso explained she proposed this amendment late today. This is connected with DP #19 and the decision packages recommended by other Councilmembers to hire staff to assist the Council. She suggested staff and Council determine if these functions could be performed with less people and less hiring. Her suggestion to eliminate DP #18 and #19 was to facilitate discussion regarding hiring an assistant in the Council office that could also handle social marketing or an art and economic development intern who could also handle social media. Councilmember Buckshnis expressed concern with placing an administrative position in the legislative branch. She felt Mr. Clifton, Mr. Chave and the Economic Development Commission were doing a great job and she did not support hiring someone to represent the City on Facebook. Community Services/Economic Development Director Stephen Clifton explained DP #18 is only $4,800, a very small amount for a very technical function and differs greatly from DP #19 or Councilmember Fraley-Monillas' proposals to hire a person related to the Strategic Plan and Highway 99. DP #18 is a contract person who would create Facebook, Google+, and YouTube pages for the City as well as be responsible for archiving, posting special event notices and Council agendas on those pages. He did not envision this person assisting with Highway 99 or implementation of the Strategic Plan. Councilmember Bloom summarized creating and maintaining a Facebook page was an administrative function. Eliminate Decision Package #19 —1 year project — contracting for arts and information o $65,000 Mr. Clifton explained this is a half-time contracted person to provide information on City economic development matters as they relate to cultural tourism promotion and develop integrated messaging for advertising and priorities for marketing. This was to build, in part, on the Arts Summit as well as determine how to better market the City, communicate more effectively with residents, business owners, etc. The cost of the contract would be $40,000; another $15,000 is proposed to provide funds to the person for marketing, communication, etc. Mayor Earling agreed with Councilmember Buckshnis' concern with this attempt to move an administrative matter to the Council. Councilmember Fraley-Monillas clarified she proposed hiring temporary part-time contract staff to coordinate the strategic plan because there was insufficient staff to pull together the 80 elements in the strategic plan. Her intent was not to circumvent staff nor was it the result of distrust of staff or to put a wedge between Council and staff. Councilmembers were invited to identify one-time expenditures that could benefit the City and one of the needs she identified was a person to coordinate the pieces of the strategic plan. She relayed the EDC's frustration with the lack of coordination of the strategic plan and expressed concern with requiring this of staff, particularly Mr. Clifton's department which consists of two people. She envisioned this person reaching out to entities that are identified in the strategic plan to determine resources they need in order to move the strategic plan forward. Mr. Clifton commented Councilmember Fraley-Monillas' explanation illustrates why that person would not be appropriate to perform the more technical function envisioned in DP #18. Edmonds City Council Approved Minutes November 19, 2013 Page 16 Councilmember Buckshnis reiterated this and DP #18 were administrative positions. She pointed out the strategic plan includes many other stakeholders such as the Chamber, Senior Center, Floretum Garden Club, dog park, etc. Mr. Clifton clarified the $4,800 contract for DP #18 was totally separate from the amendments related to the strategic plan and Highway 99. Council President Petso advised she submitted this amendment, assuming there was duplication between DP #18 and #19. Her intent was to have Councilmembers who proposed hiring communicate with staff to determine what would address their needs. She envisioned instead of hiring four people, combining the tasks and hiring only two people. Councilmember Bloom referred to DP #18, relaying her understanding that the intent of Facebook, Google+ and YouTube pages was to promote Edmonds. Mr. Clifton referred to strategic plan action item 5.b.2 related to more effectively communicating with residents and businesses and using alternative methods of communicating, specifically mentioning Facebook, Twitter, etc. The goal is to use Facebook, Google+ and YouTube as an alternative method of communicating to the City's government channel, website or official notices. He explained when someone became a friend of the City's Facebook page, they would be alerted to any posts. Councilmember Bloom relayed her understanding a Facebook page would be completely separate from the City's website. Mr. Clifton agreed. Councilmember Johnson pointed out 5.b.2 is a medium -high priority. These are the avenues to accomplish increasing communication with younger people. She noted youth are underrepresented and they must be communicated in a format they access. Councilmember Fraley-Monillas commented communication has moved into Facebook, YouTube, Twitter, etc. Increasing communication methods can only give the City more publicity. Mr. Clifton relayed 60% of all searches now start on a mobile device. Councilmember Bloom asked whether the $4,800 would cover only setting up Facebook, Google+ and YouTube. Mr. Clifton answered it covers page customization, graphic design, content management, updates, monitoring, archiving, YouTube channel customization, management and integration with YouTube from Google+ and Facebook, profile verification, search engine unification, customization, etc. Councilmember Bloom asked whether maintenance and oversight would be done by staff. Mr. Clifton answered that would be done by the contractor. It is proposed as a one-year contract to see how it works. Councilmember Bloom asked how DP #18 differed from DP #19. Mr. Clifton explained the fundamental role of the person hired for DP #19 was to assist with the development of an effective communication plan or program as it relates to the items he identified earlier, strengthening cultural tourism promotion, developing integrating messaging for advertising for the City which could include better ways to advertise, announce and market on Facebook, Google+ and YouTube as well as developing priorities for marketing the City to businesses, visitors and residents. This could also assist with initiating a branding process. Mr. Neumaier advised DP #19 should have been $55,000; an administrative amendment will be proposed to reduce it from $65,000 to $55,000. • Eliminate Decision Package #39 — eliminate a transfer for LED fixtures to streetlights and to improve Library HVAC systems o $300,000 o Concern with the priority of this project Edmonds City Council Approved Minutes November 19, 2013 Page 17 Council President Petso understood energy efficiency projects were good. She proposed this amendment due to the backlog of building maintenance repairs. The budget already includes $280,000 for the ESCO III project approved last year. That project was initially proposed to be funded via a 2% loan; the 2014 budget includes cash funding that project. She noted the cost was actually $210,000 as $90,000 was from another source. She expressed concern with DP #39 a significant commitment to an energy efficiency project, when there are other more pressing building maintenance needs. She proposed this to start the discussion regarding whether the City was in a position to commit approximately $500,000 to two energy efficiency projects this year. Public Works Director Phil Williams agreed the next cost of this project was $210,000. DP #39 is for LED light figures in decorative lights downtown as well as the library HVAC units. He recalled when the Senior Center HVAC units failed and had to be replaced last year. The HVAC units save money which allows staff to seek grant funds, however, the library HVAC units need to be replaced anyway. Council President Petso asked whether the City had the option to take a loan for one or both of those projects. Mr. Williams advised he needed to confirm that with Jim Stevens. • Reduce Decision Package #48, an amount included as regular transfer from General Fund to Risk Management by $300,000. Mr. Neumaier advised the $300,000 increases the Risk Management Fund to the 2% target established by policy at yearend. Reducing it by $300,000 would meet the 2% target at the beginning of the year. Council President Petso explained the Council policy of having the extra 2% in the Risk Management Fund is redundant and precautionary. Targeting 2% at the beginning of the year and only requiring a transfer of $600,000 to reach the 2% was acceptable because the amount the City will pay in lawsuits next year is unknown. She preferred to get the fund to the required 2% balance, allow the year to unfold and replenish it next year if necessary. • Eliminate $129,000 transfer to Fire Fighters Fund o With only three remaining participants in the fund, the actuarial amount is irrelevant. The City is currently spending approximately $5,000/month. The $129,000 transfer is unnecessary given the $176,000 fund balance. Councilmember Fraley-Monillas asked about the fund balance during the past few years. Accountant Deb Sharp reported in 2012 it was $216,000; with the budgeted transfer, the balance would be $261,000. Council President Petso advised this is not the LEOFF fund which has a larger number of employees. This is Fire Fighter Reserve Fund 617 which has only 3 participants and its own source of income of approximately $50,000/year and reserves of $176,000. With only three participants, the fund can be monitored annually. If the three participants remain in good health there is no reason for the transfer at this time. Should one of more of the participants become ill, the $176,000 fund balance can be used until the next budget cycle. Ms. Sharp relayed her understanding that these three participants were pre-LEOFF where all their expenses were paid. • Adjust Decision Package #36 to increase General Fund for paving and reduce REET for paving o $450,000 Council President Petso explained this amendment and the following amendment would leave the policy in place that excess REET 1 funds be used for Parks & Recreation acquisition and development. She Edmonds City Council Approved Minutes November 19, 2013 Page 18 wanted to keep this policy in place until the PROS Plan is updated and without causing a reduction in the $1.2 million budgeted for paving. Councilmember Buckshnis commented $600,000 was identified for Council amendments; $200,000 from REET and $400,000 in the General Fund. Of that $400,000 she requested $200,000 be put into a fund dedicated to marsh restoration. Mr. Neumaier advised the $200,000 for the marsh is included as an amendment, funded either by the General Fund or REET. Councilmember Peterson expressed concern with identifying funds for paving by delaying transfers. Street paving is a preeminent issue facing the City and needs to have funding source that is not "skimming a little bit off here and there" which he noted is not a long term solution. Council President Petso clarified it was not intended to be a long term solution to paving. It would be a change in a long standing Council policy to raid funds dedicated to parks to pave streets. The delayed transfers are not really delays, they may not be necessary. She clarified this does not affect the $400,000 Councilmember Buckshnis referred to; $200,000 could be dedicated to the marsh. Keeping funds in REET 1 also furthers the marsh effort because marsh -related expenditures qualify as park and recreation. She invited Councilmember to contact her if they were unclear about the amendment. COUNCILMEMBER FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER BLOOM, TO EXTEND THE MEETING % AN HOUR. MOTION CARRIED UNANIMOUSLY. Reduce Decision Package #46 — General Fund portion of Reserve for Major Capital Projects o This amendment would transfer amounts not utilized by the Council to the Council Contingency. New Funding Proposals: • Increase Professional Services in Development Services for code rewrite (one-time) o $75,000 Councilmember Buckshnis recalled Mr. Chave indicated Ms. Morris is 75% done with the code rewrite. She asked whether the entire $75,000 was needed. Mr. Chave answered it will depend on how a new Development Services Director wants to proceed. If the Council has more expenditures than revenue at the end of this process, there may be an opportunity to prioritize the Tree Code rewrite. Code rewrite of Tree Code (one-time) o $25,000 • Half-time coordinator of all volunteers (ongoing) o $40,000 Councilmember Bloom explained she proposed this due to the numerous excellent volunteers and the unavailability of anyone on staff to seek student representatives. Parks & Recreation staff oversee an enormous amount of volunteer work; she suggested the coordinator be assigned to the Parks & Recreation Department. Councilmember Yamamoto commented all the City's boards and commissions are volunteers. He did not support funding a volunteer coordinator. Edmonds City Council Approved Minutes November 19, 2013 Page 19 • $30,000-40,000 to hire a temporary part time department contract staff to coordinate the strategic plan times (one-time) Councilmember Peterson suggested this be assigned to a department rather than a direct report to Council. Councilmember Fraley-Monillas explained the only reason she suggested a direct report to Council was she thought staff had enough to do and the Council assisting with coordinating the strategic plan would lighten staff s load. She was agreeable to this position reporting to the Economic Development Director with funding from the funds allocated to the Council in the budget. For Councilmember Bloom, Councilmember Fraley-Monillas explained the intent was for this person to assist stakeholders identified in the strategic plan and keep Council and citizens informed of progress. • $30,000-40,000 to hire a temporary part time department contract staff to coordinate the economic redevelopment of Highway 99 for 1 year Councilmember Fraley-Monillas suggested this position could report to a staff member. She observed little progress had been made with Highway 99 over the past ten years. She referred to projects in Shoreline and Lynnwood on Highway 99, envisioning little would happen in Edmonds without dedicated assistance. Her proposal was a contract staff person who could speak with businesses on Highway 99, hold community meetings, focus groups, etc. Mr. Neumaier offered to consult with Public Works, Planning and Economic Development to determine to whom this person would report. Councilmember Fraley-Monillas pointed out the Highway 99 area generates approximately 80% of the City's sales tax. The area is under-utilized due to a lack of staff. Mayor Earling expressed his pleasure at the shift from Council supervision of a number of positions. He suggested the directors and he meet tomorrow to determine whether the job responsibilities could be integrated to avoid four separate job descriptions. • Annual Citizen Appreciation Picnic o $1,000 • Council part-time legislative analyst position (ongoing) o $40,000 Mayor Earling asked what a legislative analyst would do, pointing out the City has a very high quality lobbyist in Olympia. Councilmember Johnson answered this position would not duplicate any of Mr. Doubleday's efforts but would provide staff support to the Council with supervision by the Council President. Councilmember Peterson asked whether this would be a different role than Council Executive Assistant Jana Spellman. Councilmember Johnson answered it would not be a duplication of Ms. Spellman's work; this position would assist the Council with research and analysis. • Transfer of $100,000 from General Fund to 112 for SR104 Study Mr. Neumaier advised there is currently $50,000 budgeted for this effort, this would increase the amount to $150,000. Edmonds City Council Approved Minutes November 19, 2013 Page 20 Councilmember Peterson asked what the study would entail. Councilmember Johnson responded this study was identified as a $150,000 item in the Capital Improvement Program. Only $50,000 was allocated in last year's constrained budget; this would increase funding to $150,000. Councilmember Bloom asked what portions of SR104 were envisioned to be studied. Councilmember Johnson advised the project limits in the CIP are from the ferry to the Interurban Trail. Council President Petso has suggested it be extended to Lake Ballinger. Mayor Earling advised staff will meet with Councilmember Johnson this week to flesh out the SR104 Study and report to the Council next week. Green Resources Room at City Hall for permit applications, staff training regarding sustainable design/building practices for low impact development. o $25,000 from the General Fund o $25,000 (8,333 from each of the three utility funds) Councilmember Peterson commented on the importance of trained staff who are able to promote green building to developers and residents. Councilmember Fraley-Monillas asked if the funds were specifically for staff training. Councilmember Peterson answered it would include training as well as redesigning the 2°d floor to be more user friendly. Small matching grant reserves for Board and Commissions, most notably the Tree Board and Economic Development Commission o $50,000 Councilmember Peterson suggested combining this with the $25,000 for a Tree Code rewrite and Councilmember Fraley-Monillas' amendments to hire contract labor. He envisioned these funds could be allocated by the Council to the EDC or Tree Board as matching funds. Council Revenue Amendments 0 Grant Funding for Historic Preservation printing o $5,000 • Grant Funding for Marsh Restoration o $200,000 Transfer from GF to Historical Preservation Fund for reprint of historic preservation brochures o $2,000 Councilmember Johnson suggested the two Historic Preservation items be funded from the $50,000 for Boards and Commissions. Councilmember Buckshnis suggested establishing a fund that would allow the public to make tax deductible donations to the marsh. COUNCILMEMBER FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER PETERSON, TO EXTEND THE MEETING UNTIL 11:00 PM. MOTION CARRIED (6-1), COUNCILMEMBER JOHNSON VOTING NO. Mr. Neumaier advised the remaining amendments are related to the amendments discussed above. Edmonds City Council Approved Minutes November 19, 2013 Page 21 Mayor Earling encouraged Councilmembers to communicate with staff regarding revisions to amendments. 11. REPORT ON CITY COUNCIL COMMITTEE MEETINGS OF NOVEMBER 12, 2013 Councilmember Fraley-Monillas requested the Finance Committee minutes not be submitted tonight. 12. MAYOR'S COMMENTS Mayor Earling reminded of the tree lighting ceremony on November 30. Mayor Earling advised the Sound Transit Board is in the process of deciding on a preferred alignment for light rail to Lynnwood. There is a potential station at 220th 13. COUNCIL COMMENTS Council President Petso invited Mr. Taraday to address the Carol Morris contract. City Attorney Jeff Taraday explained next week's Consent Agenda will include an extension of the not to exceed amount for Ms. Morris' services. When the Council originally authorized a $5,000 contract with Ms. Morris, the hearing was contemplated to be much less substantial. The contract stated an amendment would occur if she had to come out more than twice; December 3 will be her fourth time. He estimated the $5,000 contract would be extended to $10,000. Councilmember Buckshnis remind of First Dibs this Thursday. She thanked all the EDBID volunteers for their efforts and City staff for their work on the budget. 14. CONVENE IN EXECUTIVE SESSION REGARDING PENDING OR POTENTIAL LITIGATION PER RCW 42.30.110(1)(i) At 10:35 p.m., Mayor Earling announced that the City Council would meet in executive session regarding pending or potential litigation per RCW 142.30.110(1)(i). He stated that the executive session was scheduled to last approximately 30 minutes and would be held in the Jury Meeting Room, located in the Public Safety Complex. Action may occur as a result of meeting in executive session. Elected officials present at the executive session were: Mayor Earling, and Councilmembers Yamamoto, Johnson, Fraley- Monillas, Buckshnis, Peterson, Petso and Bloom. Others present were City Attorney Jeff Taraday, Public Works Director Phil Williams, Community Services/Economic Development Director Stephen Clifton, City Engineer Rob English and Deputy City Clerk Linda Hynd. At 11:05 p.m. Mayor Earling announced to the public present in the Council Chambers that an additional 15 minutes would be required in executive session. The executive session concluded at 11:24 p.m. 15. RECONVENE IN OPEN SESSION. POTENTIAL ACTION AS A RESULT OF MEETING IN EXECUTIVE SESSION Mayor Earling reconvened the regular City Council meeting at 11:24 p.m. No action was taken as a result of meeting in executive session. 16. ADJOURN With no further business, the Council meeting was adjourned at 11:25 p.m. Edmonds City Council Approved Minutes November 19, 2013 Page 22