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Cmd062320EDMONDS CITY COUNCIL VIRTUAL ONLINE MEETING APPROVED MINUTES June 23, 2020 ELECTED OFFICIALS PRESENT Mike Nelson, Mayor Adrienne Fraley-Monillas, Council President Kristiana Johnson, Councilmember Luke Distelhorst, Councilmember Diane Buckshnis, Councilmember Vivian Olson, Councilmember Susan Paine, Councilmember Laura Johnson, Councilmember 1. CALL TO ORDER/FLAG SALUTE STAFF PRESENT Phil Williams, Public Works Director Patrick Doherty, Econ. Dev & Comm. Serv. Dir. Angie Feser, Parks, Rec. & Cultural Serv. Dir. Shannon Burley, Deputy Parks & Recreation Dir. Pamela Randolph, Treatment Plant Mgr. Dave Turley, Assistant Finance Director Casey Colley, Youth Commission Coordinator Jeff Taraday, City Attorney Scott Passey, City Clerk The Edmonds City Council virtual online meeting was called to order at 7:08 p.m. by Mayor Nelson. The meeting was opened with the flag salute. 2. LAND ACKNOWLEDGEMENT Councilmember L. Johnson read the City Council Land Acknowledge Statement: "We acknowledge the original inhabitants of this place, the Sdohobsh (Snohomish) people and their successors the Tulalip Tribes, who since time immemorial have hunted, fished, gathered, and taken care of these lands. We respect their sovereignty, their right to self-determination, and we honor their sacred spiritual connection with the land and water." 3. ROLL CALL City Clerk Scott Passey called the roll. All elected officials were present, participating remotely. 4. APPROVAL OF AGENDA COUNCILMEMBER PAINE MOVED, SECONDED BY COUNCIL PRESIDENT FRALEY- MONILLAS, TO APPROVE THE AGENDA IN CONTENT AND ORDER. COUNCILMEMBER OLSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO AMEND THE AGENDA TO REMOVE 9.1, BOYS AND GIRLS CLUB BUILDING USE AGREEMENT ADDENDUM NO.1, FROM THE AGENDA AND SCHEDULE ON A FUTURE DATE. Edmonds City Council Approved Minutes June 23, 2020 Page 1 Councilmember Olson advised in discussion with City Attorney Jeff Taraday, it would be preferable to draft a new contract rather than an addendum and extension of the existing contract due to material changes to the original contract. AMENDMENT CARRIED UNANIMOUSLY. MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY. 5. AUDIENCE COMMENTS HTTPS:11LOOM.US/S/4257752525 Mayor Nelson invited commenters to join the meeting and described the procedures. Lori Rasmussen, Edmonds, stated she was highly disappointed in the matrix for the CARES funding. She had thought the matrix would be presented to Councilmembers the day after last week's meeting, but could not imagine that it had been. She found the lack of professionalism disrespectful to the Council in view of the amount of time Councilmembers had put in last week. The technical details of the matrix need to be changed because it does not reflect a lot of the information that Councilmembers asked be included. If she was a Councilmember, she would be exhausted at the idea of reviewing the criteria this week after putting in so many hours last week. She requested the Council consider scratching this criteria and going with Snohomish County's because it will take the Council a lot of time to review the mistakes, changes and what is missing in the matrix, especially without the minutes. She was dismayed staff had not done a better job. She shared information with some Councilmembers and hoped other citizens had also done so. She summarized the staff member works for the City and he should be held accountable to work professionally. (Written comments submitted to PublicComment@Edmondswa.gov are attached.) 6. APPROVAL OF THE CONSENT AGENDA ITEMS COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER PAINE, TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda item approved is as follows: 1. APPROVAL OF CLAIM, PAYROLL AND BENEFIT CHECKS, DIRECT DEPOSIT AND WIRE PAYMENTS PRESENTATIONS YOUTH COMMISSION RECOGNITION Deputy Parks &'Recreation Director Shannon Burley introduced Youth Commission Coordinator Casey Colley. Ms. Colley reviewed: ■ Youth Commission Background o June 2018 - Council established City's first Youth Commission o Council interviewed and appointed applicants ■ December 2018 & January 2019 ■ June 2019 o Goal: to provide a place for teenagers to advocate for themselves and to bring attention to issues that affect them; while providing youth an opportunity to gain governing skills; accountability and learn the structure of local government. o Intent: to draft policy proposals to share with the Mayor and the City Council; organize forums of Edmonds youth to better educate the City about the opinions of youth on civic issues and to recognize accomplishments of youth and promote the value of youth in our community. Edmonds City Council Approved Minutes June 23, 2020 Page 2 o The Youth Commission consists of 11 positions ■ Each serve a 1-year term, must reapply each term o Recognizing six Youth Commission founding members IN Two who helped form the Commission with then Council Member Mike Nelson o The five remaining members wish to remain on the Commission o Currently six vacant positions — Fall application/appointment • Youth Commission Recognition o Many accomplishments to include: ■ Development of the Youth Commission and having it adopted by City Council ■ Support of the City of Edmonds Climate Action Plan • Supporting the Puget Sound Regional Council ■ Hosting Youth forums on challenging topics • Multiple volunteer projects throughout the City • Recognition of six Founding Members o Stephany Janssen • Youth Commission Chair, Seat 3 • Instrumental in developing the Youth Commission, its structure and ordinance in 2018 • Appointed December 2018 • Attending the University of Washington this fall, plans to pursue a double major in political economy and philosophy o Kaleb Nichols ■ Youth Commission Vice -Chair, Seat 9 • Instrumental in developing the Youth Commission, its structure and ordinance in 2018. ■ Appointed December 2018 • Attending the University of Arizona this fall, pursuing a degree in law and policy o Cole Albaugh • Appointed January 2019, Seat 5 • Entering his Junior Year at Edmonds Woodway High School o Alissa Berman ■ Appointed in January 2019, Seat 4 • Served first term as an alternate, reapplied and received a permanent position ■ Attending Whitman College in the fall, plans to double major in English and Philosophy o Emily Sanger • Appointed January 2019, Seat 11 • Attending the University of Washington's Foster School of Business this fall o Caroline Wills • Appointed December 2018, reappointed June 2019, Seat 8 • Only student from Meadowdale High School on the Commission ■ Attending the University of Washington this fall, plans to study Public Health Ms. Colley thanked the youth adults for volunteering to serve the City and for their effort to make youth more incorporated and valued in the community. COVID cut their work short including plans for a climate - change forum. Owen Lee, Youth Commission Secretary, explained he applied for the Youth Commission as a freshman and has been on the on commission for 1'/z years. His time on the Youth Commission has been extremely impactful for him; he has met a variety of people who have been influential on their life. He recognized Stephany, Kaleb, Alissa, Emily and Caroline who will be missed. He also recognized Casey Colley and Shannon Burley for their work to support the Youth Commission. The Youth Commission is starting to take shape and although there were some issues in the beginning, it has huge force for change especially Edmonds City Council Approved Minutes June 23, 2020 Page 3 during this time when youth are leading many movements for big systematic change. He was excited to be part of that and to be on the Youth Commission next year. Caitlin Chung, Youth Commission Treasurer, said she joined the Youth Commission in her freshman year. It has been a learning experience and an opportunity to be involved with the community in ways she would not have been without the Youth Commission. She has met amazing people and worked with different groups in the community. She thanked Casey Colley and Shannon Burley for helping create the Youth Commission and thanked the other members of the commission, particularly the seniors who are graduating for making it an amazing experience. She has participated in volunteer experiences and amazing forums on various topics, Council President Fraley-Monillas thanked Kaleb and Stephany for their work getting the Youth Commission up and running. She recognized the amazing youth on the commission and was excited to see their future efforts. She thanked Caitlin and Owen for volunteering, commenting they have big shoes to fill but they were certain up to it. She thanked all the volunteers who have been part of this process, commenting it was great to see young people participating and looking at the City in a wholistic manner from the point of view of a different age group. Councilmember Buckshnis thanked the Youth Commission for volunteering with the Students Saving Salmon at an event at Holy Rosary Church. She commented now is the time for youth as many people are listening. She recognized their involvement with the Mayor's Climate Protection Committee and congratulated the graduating seniors and was impressed with their future plans. Councilmember Paine echoed the previous Council comments, commenting the Youth Commission was absolutely the right thing to do when it was established. She was surprised and excited to learn that she knows several of the members and was excited about everything they were doing. She congratulated the graduating seniors. Councilmember L. Johnson commented serving as the Council liaison to the Youth Commission has been a fun Council appointment. Edmonds is very fortunate to have such a passionate group of youth commissioners. She appreciated the time she has had to learn from them and to be inspired by them. She appreciated Mayor Nelson forming the commission and thanked Ms. Colley and Ms. Burley for guiding and mentoring the youth. She was excited to see what the future holds for the six outgoing commissioners and looked forward to continuing to learn from the existing members and to meeting new applicants this fall. She encouraged youth to apply for a position on the Youth Commission. Councilmember Distelhorst echoed the congratulations and thanks to the outgoing commissioners and those who will continue on the commission. He asked when the commission planned to begin meeting again, noting there were a couple Councilmembers who would like to bring projects to the commission. Ms. Burley said suggestions can be forwarded to Ms. Colley or her at any time. The amendments to the Youth Commission ordinance later on the agenda will address special meetings. Meetings require five members for a quorum; there are five members so special meetings can be held this summer. Recruiting will begin in the fall. She encouraged Councilmembers to suggest topics/projects. Councilmember Olson commended the youth for their positive attitude, recognizing their breadth of opportunity, knowledge, and perspective will enrich their generation. She thanked the graduating members for bearing with these difficulty times in their senior year and she looked forward to working with the existing and new commissioners. Ms. Colley thanked the City Council and Mayor Nelson for creating the commission which has been a great opportunity for youth. Edmonds City Council Approved Minutes June 23, 2020 Page 4 2. COMMUNITY SERVICES RESOURCE GUIDE Economic Development/Community Services Director Patrick Doherty commented many individuals and families in Edmonds have not shared equally in the region's formerly robust economy of our community and region, often finding themselves in need of assistance of various kinds to help out with financial, mental, health, employment and other challenges. Fortunately, Edmonds is located in a generous region with many established social- and human -services agencies that have recently stepped up to an even greater extent, offering existing and newly formed programs that have responded to the greater needs within our community brought on by the COVID-19 crisis. In order to help respond to increasing demands, City staff have prepared a comprehensive and indexed listing of local and regional resources, categorized for such cohorts as employees, seniors, veterans, disabled, college students, homeless, health workers and first responders, and small businesses. It provides web links to each organization offering financial aid, food, childcare, housing assistance, and utility discounts. This resource will be made available on the City's website in at least three locations: human services webpage, City Council webpage, and the COVID-19 resources webpage. It is intended to be a "living document" that will be updated continuously with new and revised information. Staff will also ensure that this resource is made public on social media and elsewhere to encourage residents to learn more about these resources and share information they learn. He thanked Council Legislative Assistant Maureen Judge, Human Services Program Manager Mindy Woods, and Councilmember Kristiana Johnson for their work on compiling this valuable resource. Mr. Doherty displayed the Community Services Resource Guide which is organized by categories (individuals/families/children, employees, seniors, veterans, disabled, college students, homeless, healthcare workers/first responders and small businesses) and provides program/organization name, services provided, timeframe, and link/contact info. Councilmember L. Johnson thanked everyone involved in creating the resource guide. She suggested sharing the resources for college students with local community colleges and high schools. Council President Fraley-Monillas said this was initially started by Ms. Judge and Councilmember K. Johnson; once the Human Services Department was established, it was transferred to them. She loved the way the information was formatted into groups which would make it easier for people to use. She suggested it may be challenging to keep the guide updated as agencies and the services they offer change, a problem that 211 has had. She planned to keep a copy with her so she could refer to it as she encounters situations. Mr. Doherty also thanked Deputy City Clerk Nicholas Falk for his assistance with formatting the guide. 8. ACTION ITEMS 1. WASTEWATER TREATMENT PLANT INCINERATOR REPLACEMENT & CARBON RECOVERY PROJECT UPDATE AND RECOMMENDATION Public Works Director Phil Williams introduced Lonn Inman, project manager, Ameresco, who is responsible for delivering the work and the guaranteed price, energy savings and performance guarantees; Dave Parry, the City's third party expert consultant on view of the alternatives and helping work through issues related to project development; and Pamela Randolph, WWTP Manager. He expressed appreciation for all the emailed questions the team received this week and did their best to answer. Mr. Williams reviewed: Edmonds City Council Approved Minutes June 23, 2020 Page 5 • Overview of the ESCO project delivery approach o Guaranteed Maximum Price $26,121,250 o Guaranteed Performance o Guaranteed Energy Savings • Edmonds WWTP has been working since 2013 to save energy and revamp its solids handling systems o Replaced a too large, inefficient blower with a new turbo blower reduced 345 tons CO2E o Put in fine bubble diffusers and another high tech blower for more energy efficient 02 transfer o Replaced Belt Filter Presses (messy, inefficient, old) with new screw presses o Net results 1,146 Tons/yr. CO2E reduction + annual savings of $201,182 • Phase 6 (proposed) Incinerator Replacement & Carbon Recovery Project o Add Pyrolysis/Gasification system produced by Ecoremedy o Save an additional $123,468 in electric costs and a total of $341,247 in O&M expense and recover an additional 577 tons CO2E • The existing incinerator needs to be replaced sooner rather than later o It is past any reasonably expected useful life by at least 7 years (runs 18-20 hrs./day for 32 years) o Maintenance costs are climbing quickly and several major sub components are running on borrowed time o It is nearing the 50% replacement threshold requirement set by USEPA o To make any additional major investments to extend its life will trigger replacement o We must complete construction in one low flow summer period or face much higher costs for hauling & disposal o Lead time on the major equipment package is 9 months - further delay risks carrying the project over to 2022, a full year postponement. • Pyrolysis and Gasification are the best options for Edmonds o The option of Anaerobic digesters in Edmonds is just not realistic o A new incinerator is more expensive upfront AND has higher O&M costs long term, doesn't make a useful product o That leaves the "greener" options of Pyrolysis and Gasification • Pyrolysis o A perfectly good technology and two great companies Centrisys/Bioforcetech o Pyrolysis only (Bioforcetech) was significantly more expensive to build and commission ($3,000,000+) o Their project did not have a positive energy balance so would likely not have been eligible as an ESCO project o It required a new building which wasn't particularly popular • Gasification/Pyrolysis o Ecoremedy ■ A better choice for Edmonds on many fronts. Cheaper initially by $34M, will save an estimated $341,000 every year thereafter in operations and maintenance expenses, does not change the appearance or profile of the WWTP (neighbor friendly), and also produces a "green" biochar end product. Moving to this project is a win for the City and is the result of the City's additional due diligence. ■ Approximate Financial Impacts o All numbers are estimates only at this point o Includes all sales taxes o Bond Insurance ($301,000 est.) not included o Interest rates could increase or decrease prior to sale of bonds o We could evaluate using levelized debt service or a debt service wrap Edmonds City Council Approved Minutes June 23, 2020 Page 6 o We show a 20-year amortization but other choices are available o Final arrangement could include our partners as well but wouldn't change Edmond's numbers o Edmonds Partners Shares ■ Mountlake Terrace 23.174 % ■ Ronald 9.488 % • OVWSD 16.551 % ■ Edmonds 50.787% o 20 year term, level ized debt service, 2.7% Interest Rate Project Cost $26,121,250 Edmonds share A 50.787% $13,266,000 Debt Service Reserves $1,507,500 Issuance Costs $301,500 Total Bond $15 075,000 Insurance? $301,500 Gross Payment $81,360*12 = $976,320 Interest on Reserves $976 x 1 % x 12 = $11,712 Net Payment $964 608/ r. + utility tax 10%) _ $1,061,069 2020 Projected Rate Revenue (approved 2020 budget) $12,873,846 New Rate Revenue Needed/Projected 2020 Rate Revenue $1,061,069/$12,873,846 = 8.24%* o The Project team estimates savings of $341,247/yr. in O&M o Edmonds share of that varies but averages approx. 47% or $160,3 86 o Net Edmonds cost increase = $1,061,069 - $160,386 = $900,683 or 7.0% o Single Family Residential would increase from $45.84/mo. to $49.05 or $3.21/mo. o Graph of existing and proposed debt • Existing debt — WS Improv. and Ref. Rev 2011 — WS Rev 2013 — WS Rev 2015 ■ Proposed 2020 Bond, 20 year Level Debt Service To set the record straight, Councilmember Buckshnis pointed out the $2.1 million cost of design was shared by the other partners as part of project. Mr. Williams agreed and said they have already paid their share of those costs. Councilmember Buckshnis asked the expected life of the equipment. Mr. Williams answered the existing incinerator has lasted 32 years; a 30-year life is a reasonable estimate, but with great maintenance and attention to detail and replacing subsystems when necessary, it could be more or it could be a little less. Councilmember Buckshnis commented although it was more predictable to have 20 year bonds, she suggested looking at 25 years, commenting interest rates will never be this low again. She clarified she was not suggesting 30 years. Dr. Parry agreed many solids processing projects will go out 25 years. Sometimes these operations are privatized where private companies need to get funding and often the operations contract in the considered life expectancy of the equipment is 25 years. He agreed 20 or 25 years were very common, but 30 years was too long and 15 was too short. Councilmember Buckshnis reiterated rates will never be this low again. She gets more complaints about utility rate increases than about property taxes. In the last decade utility rates have increased 22%. The City owes it to the citizens to investigate a longer term and what the potential savings could be. She relayed that she and many others enjoyed Dr. Parry's information that was included in the packet. Mr. Williams said Edmonds City Council Approved Minutes June 23, 2020 Page 7 the project team has no hard and fast recommendation regarding the amortization period for the bonds as either could work; it is a policy decision for the Council to make. Councilmember Olson thanked the entire staff and team that has been involved in this. This is a very important system, a system that no one wants to see fail. There is also real potential for environmental impact as well as an opportunity for less environmental impact. Although she has been on record in the past opposed to the use of consultants, in this case, this was an appropriate time to use a consultant and she was very pleased with their efforts. She thanked everyone for the back and forth on the numerous questions and the citizens' input to ensure all opportunity were being explored. She felt good about the work that had been done for the City on this project. Councilmember Buckshnis recalled City Attorney Jeff Taraday mentioned waiting and working through the newest agreement with the partners. Her concern was there are three other entities who are part of this project although it looks like that was covered in the contract. The partner entities will have to raise rates as well and she wanted to protect City's interest. She asked Mr. Taraday to describe the two options he had suggested. Mr. Taraday clarified he had not recommended one way or another with regard to whether the Council should defer a decision on moving forward with this project. He simply wanted to bring to the Council's attention, in response to question from a Councilmember, that the agreement with the partners is subject to a very short term extension that he recalled goes through August. As of right now, the partners are not signed onto a long term contract or even a term that would last through the end of this project. Having said that, after having length conversations with Mr. Williams, there is no controversy with regard to the partners and their willingness to pay their fair share of this project. They all understand the need for the project and the cost of the project and it was his understanding from his conversations with Mr. Williams that they have budgeted for their share of the project. Mr. Taraday explained although there is no controversy with the project, there is controversy with regard to a completely unrelated jurisdictional issue between the Ronald District and the Olympic View Water and Sewer District and because of that, it has not been possible to get all the parties to approve a 30-year agreement that has been negotiated for quite some time. There are a couple ways to potentially resolve that issue to ensure the parties are signed up for the duration of this project. One option would be to address the controversy in the 30-year agreement, identify the disputed jurisdictional issue on the exhibit that is the subject of the controversy and identify it as disputed, subject to a court case, etc. That might be enough to get the parties to move forward with signing a long term agreement. The other option would be another extension of the 1988 agreement for 18 months to 2 years so the parties are at least locked in for the duration of this project and commit to pay their share of the cost of the project. Those options have been outlined in an email to Council. Councilmember Buckshnis said the partners committing to the original $2.1 million for the pyrolysis design shows they have skin in the game and the design will not be as expensive so negotiations are more on the positive side than the negative side. Mr. Taraday agreed there is a lot of evidence that confirms the parties intend to move forward with this project; the fact that they have already paid their fair share of the design as well as the fact that they have budgeted for their share which strongly suggest they fully intend to move forward, pay their fair share and remain as long term partners with the City. The situation related to the contract with the parties is largely a function of an unrelated lawsuit between two of the parties. He did not have any reason to believe there was any controversy regarding their willingness to participate in the project. Mr. Williams agreed he and Mr. Taraday have had numerous, lengthy conversations. He agreed the situation and the contract itself were complicated, but it comes down to they have been partners for 32+ years, they have paid their share of many capital projects, although none quite this big, and issues of breaking up the partnership have never been raised and are not being raised now. He talked to the chair of the Ronald Edmonds City Council Approved Minutes June 23, 2020 Page 8 District Board, Wesley Brandon, today as well as their sole remaining employee, Doug Wittinger, Ronald's contracts manager, and both were curious why he was asking questions about this and assured they were prepared, knew it was coming and had budgeted for it. Mr. Williams explained the controversy is between Olympic View and Ronald. Olympic View, Mountlake Terrace and Edmonds have already approved the agreement. Ronald is hesitating because they would like to wait until the Supreme Court makes a decision sometime later this year before signing the agreement. There is potential the agreement will need to be changed once the Supreme Court makes their decision. The draft document includes a graphic showing the area in dispute being in Olympic View's territory and a clause was added that states, should a court of competent jurisdiction make a decision that would be adverse or different than the agreement, the parties agree to modify agreement to reflect that new reality. That was not Ronald's preferred solution from a drafting standpoint; Ronald wanted the graphic to show the area in their territory with the same clause. A solution could be to identify it as disputed but no additional information can be introduced because the hearing before the Supreme Court happened months ago and the parties are awaiting a decision. Mr. Williams did not feel there was much risk in approving the project to move forward. He could not claim there was none, but he saw it as very, very small. As recently as today, Ronald confirmed their intent to sign the agreement as soon as the court decision comes out; the other two entities as well as Edmonds have already approved the agreement. Section 16 of the new agreement states five years notice is required to disengage as a partner. Either a two-year extension to the existing or signing the new agreement binds the parties to participate in capital projects like they have in the past without complaint. Councilmember Buckshnis referred to staff s recommendation to authorize the Mayor to sign all necessary documents between the City and the Department of Enterprise Systems (DES) to delivery this project for the Guaranteed Maximum cost of $26,121,040, but the agreement states the value is $350,000. Mr. Williams said he had not intended to go into the minutia of all the documents that need to be signed. Councilmember Buckshnis relayed her understanding that tonight's approval is the "whole shebang." Mr. Williams agreed. Mr. Taraday said there are a number of documents that need to be signed by the City that get the DES and ESCO process going. If the Council moves forward tonight, he did not anticipate any of those documents coming back to Council for action. The action the Council would be authorizing would be to approve all those necessary documents. He summarized it was approving the funding at $26,121,150; if the Council takes action to provide that funding for this project, the documents take care of themselves. COUNCILMEMBER K. JOHNSON MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, THAT THE CITY COUNCIL HOLD A PUBLIC HEARING AT ITS EARLIEST CONVENIENCE FOR ALL RATE PAYERS OF THE EDMOND SEWAGE TREATMENT PLANT'S PROPOSED INCINERATOR REPLACEMENT AND CARBON RECOVERY PROJECT. Councilmember K. Johnson commented this is a large capital project and whenever the City has a large capital project, the Council always holds a public hearing. Additionally, whenever rates for utilities are increased, there has been public hearing. She did not think Mr. Williams favored holding a public hearing because of the timeline, but she has been discussing this with him for three weeks and the sooner the public hearing is accomplished, the sooner he can move forward on this project. Council President Fraley-Monillas said Councilmember K. Johnson was not necessarily wrong about holding a public hearing, but she wondered how it would be done via Zoom other than how public comments were being done. Mayor Nelson agreed that was his impression. Mr. Williams said a public hearing is required in the code for certain decision; the Council does not hold public hearings on every major capital project. He could envision holding a public meeting next week to take comments from the Edmonds City Council Approved Minutes June 23, 2020 Page 9 public; a public meeting does not require the two weeks' notice required for a public hearing. He was doubtful a full public hearing could be accomplished via Zoom. Mr. Taraday said he was not aware of any prohibition for using Zoom for a public hearing. He was also unaware of any requirement for a public hearing on this project. Councilmember Olson agreed with Councilmember K. Johnson; however, technology and circumstances are challenging. Moreover, she has seen a lot of citizen involvement in this project while this has been a discussion and action item on the Council's agenda for the past several weeks. The project has been on citizens' radar and the public has provided a lot of valuable input. She personally felt citizens who were likely to weigh in have already done so. She could support a public hearing if the majority of the Council preferred that step, but she was comfortable either way. Councilmember Paine liked the idea of a public hearing as long as it could be done effectively using the Zoom technology and done sooner rather than later due to the interest in this project moving forward. She agreed there has been a lot of great public comment. She was amenable to either a public hearing or public meeting on this specific topic as she wanted to ensure the community got their questions answered and had the ability to comment on the rate increase. It was a big and exciting project and a public meeting/hearing would showcase the new technology. Councilmember Buckshnis agreed with holding a public hearing and suggested concentrating on the effect the project will have on ratepayers and 20, 25 and even 30 year bonds. She has talked with a lot of citizens and a lot of questions have been answered. She recommended a 25-year bond as it would lower the rate increase. She supported holding a public hearing due to the effect on rates and citizens' concern about their utility rates. She suggested holding a public hearing on July 7"'. Councilmember L. Johnson observed several Councilmembers were interested in holding a public hearing and balancing that with the urgency and timing of this project. She asked if July 7" was doable with regard to the project timing. If the Council held a public hearing on July 7"', Mr. Williams asked if the Council would be prepared to make decision on the same date or would wait a week to deliberate on what they heard at the public hearing which has happened sometimes in past. Once approved, the documents need to be drawn up with any changes, DES signs the documents, Ameresco get their subcontractors to sign, etc. He did not anticipate that process would be concluded before the end of July. Mr. Williams explained no matter what technology was selected, if everyone could agree the incinerator needed to be replaced soon, regardless of whether it was a new incinerator or a pyrolysis system, it would cost about the same amount. If the Council could commit to that level of expense, the discussion regarding how it would be recaptured via rates as well as bonding options could occur later this year. The issue at hand is deciding on the technology and agreeing to move ahead which is separate from the financing. Increases in wastewater rates over the last 6-7 years have been approximately 8-9%/year; this is about a 7% increase. He agreed it was not fun to raise rates but in this instance, a case has been made that it needs to be done and the right technology has been selected. Council President Fraley-Monillas was not willing to commit to cost or to moving ahead until the citizens have had a voice. Although it seems like a small rate increase, that can mean a lot to people on fixed incomes. She was aware the incinerator needed to be replaced, but did not see any urgency to commit to the cost until the Council heard from citizens. She was amenable to either a public hearing or an opportunity for a Zoom open house, but it was not appropriate to commit to the project in advance prior to having citizen input. Councilmember Distelhorst asked the timeline for discussing rates. Mr. Williams expected that would be discussed in late summer/early fall with the budget when any rate adjustments for the City's utilities are Edmonds City Council Approved Minutes June 23, 2020 Page 10 proposed or it could be done sooner. If the Council was amenable to a public meeting, staff could advertise that for next week, add to the materials available on the website, provide phone numbers and email addresses for questions, take comments at a public meeting next week and provide that information to Council. If there were a public meeting or public hearing in two weeks, Councilmember Distelhorst asked what feedback was sought, what elements were changeable/amendable via that input or was it just listening and that input was valuable in the fall. Mr. Williams anticipated there will be a fair number of people who will say this was a good idea; it is environmentally positive and a good step forward. He doubted there would be anyone who said it was a bad idea from an environmental standpoint. He anticipated citizens would be most interested in the finances and if it affected their rates, they likely would voice concern about that. He did not expect to hear about any new technology as the alternatives have been addressed. He anticipated most of the focus of the comments would be regarding any rate adjustments that might be necessary. Councilmember Olson said the motion on the floor is whether to hold a public meeting. Councilmember K. Johnson clarified her motion was to hold a public hearing. Councilmember Olson commented all the option regarding replacement have been studied, there has been a lot of citizen input and the community is on board with this particular approach. Preferences regarding rates and how to finance the bond would be a great subject for a public meeting. There is really is not an option regarding the capital replacement project and O&M costs that looks more financially attractive so the outcome of the public meeting will not be recommending something else. The finances such as how to bond and the amount of the utility rate increase could be separated from the project itself and be the subject of a public meeting. The Council could vote today to move forward with the actual project. Council President Fraley-Monillas disagreed, pointing out citizens do have options, one of which is to do nothing. She understood that was possibly not the best option but there were options for different systems. Assuming the City knows better than citizens negates the importance of their input. With a project this large, it is a smart idea to listen to citizens. She hoped citizens would support the project environmentally, but citizen input is more than just telling them what to think, it is about having a full, open discussion. She did not want to assume the public's only interest would be about funding or a rate increase. She encouraged Council to support holding a public hearing. Councilmember Buckshnis said the Council owes it to the citizens to have a public hearing and it was not possible to separate the project from the funding. Holding a public hearing will only delay the timeline seven days and there can be efforts to fast -track. She supported having a public hearing so the Council could point out to citizens who complain that a public hearing was held. Public hearings are usually held for rate increases and the public has a right to weigh in on this important project. Councilmember L. Johnson said if the Council holds a public hearing, citizens should have an opportunity to weigh in on all elements. A public hearing is more than just hearing people speak so that they don't complain later; it is listening to what they say and processing it which will take time. She was opposed to the Council voting the same night as the public hearing as that would mean she did not take the time to process the public's input. She advocated for delaying a decision for a week after the public hearing. Councilmember Olson said the choice of doing nothing has been addressed in previous meetings and is not an option. When the City reaches 50% in expenditures on maintenance relative to the initial capital investment, the EPA requires replacement or bringing the equipment up to EPA standards. The City would be spending money on that fix instead of investing in a new system. The timing of the low flow is also an issue. She reiterated holding a public hearing on utility rates and the bonding was appropriate but the Council should approve this project tonight. Edmonds City Council Approved Minutes June 23, 2020 Page 11 Councilmember K. Johnson pointed out three weeks ago she made statement that she felt that a public hearing should be held. She restated that to Mr. Williams last week and he stated the same things he has said tonight. The fact that there is a delay is not her fault, but Mr. Williams' fault for not agreeing to do a public hearing and moving quickly because if he had, it would be done by now. Mayor Nelson said City staff does not decide whether or not to hold a public hearing, the Council does. Mr. Williams said he was not opposed to a public hearing but that was one Councilmember asking for a public hearing. Until tonight he had not seen evidence that a majority of the City Council wanted to hold a public hearing. If that was the Council's direction, of course staff would support it. He has provided the reasons why another direction would be better, but to say it was his fault at this point was unfair. Councilmember L. Johnson asked if a public hearing could be held on the fifth Tuesday so a decision could be made at the July 7"' meeting. Mr. Williams answered no. Mr. Taraday said this an optional public hearing; there is no applicable state statute. If the Council wants to hold a public hearing on five days' notice, he not see any reason why that could not be done because it is not a required public hearing. Shortening the notice period to accommodate time for public input but also keep the project on schedule, if that was what the Council wanted to do, was an option legally speaking. A public hearing will not be materially any different than what happened tonight during public comment; the process for participation will be the same and he assumed anybody who wanted to comment likely has already done so by now. Councilmember Distelhorst thanked Mr. Williams, Mr. Inman, Ms. Randolph, and Dr. Parry who have been here week after week, hour after hour providing information at Council meetings and writing lengthy emails in response to questions. He agreed with Councilmember Olson that the facts of the project will not change. Where the public can have input is how to move forward with specifics. He was ready to move forward with the general premise of the project as presented and get the public's input on the aspects of the project that can be improved or tweaked to the benefit of rate payers. Councilmember K. Johnson said she made a simple motion and the discussion has gotten off topic. She suggested Mayor Nelson keep the discussion on topic. Council President Fraley-Monillas expressed support for holding a public hearing as getting the public involved at any point is important. The public could say they do not want to do this project now and wait until next year. If 50 people said that, that would be a consideration. She did not think that would happen but you never know. Councilmember Olson clarified if Councilmembers voted no on this motion, another motion could be made to hold a hearing only on the financial aspects, how to bond and the amount of the utility rate increase. Mr. Taraday agreed that could be done if this motion was defeated. Mayor Nelson asked if the motion needed to state when the public hearing would be held as typically it was in 14 days. City Clerk Scott Passey said the motion was to hold public hearing with no dates. Next week is the fifth Tuesday and the Council typically does not meet on the fifth Tuesday. If the motion contemplates holding a public hearing next week, there will need to be an understanding that there will be a special meeting next week. Council President Fraley-Monillas advised some Councilmembers will not be able to attend as it was a fifth Tuesday. She asked if a public hearing could be held without the Council. Mr. Taraday suggested the maker of motion specify a date; otherwise the date would be left for staff to determine. Councilmember K. Johnson restated her motion: THAT THE CITY COUNCIL HOLD A PUBLIC HEARING AT ITS EARLIEST CONVENIENCE FOR ALL RATE PAYERS OF THE EDMOND SEWAGE TREATMENT PLANT'S PROPOSED INCINERATOR REPLACEMENT AND CARBON RECOVERY PROJECT. Edmonds City Council Approved Minutes June 23.2020 Page 12 Councilmember Buckshnis asked if there would be a quorum next week if a public hearing was held on the fifth Tuesday. MOTION CARRIED (64), COUNCILMEMBER OLSON VOTING NO. Council President Fraley-Monillas asked if there should be a second motion indicating staff have a public comment period at their earliest convenience as she did not anticipate a quorum would be available next week. She asked if the Council needed to be present or could they watch the meeting later or read the minutes, advising otherwise the public hearing will be two weeks from tonight. Mr. Taraday said with regard to the public hearing that the Council just adopted by motion, it would have to happen at a Council meeting. It is up to the Mayor and Council President to determine the date unless the Council directs otherwise. Councilmember Olson reminded that anyone on the prevailing side can make a motion to reconsider. 2. EDMONDS CARES FUND Mayor Nelson said there has been a lot of email traffic among members related to sales tax. He wanted to address that in light of other issues that are being raised and particularly underlying issues that need to be shed to light. He referred to a 6/12/20 email that he was provided from Patrick Doherty originally from Councilmember K. Johnson to Mr. Doherty about interest in pursuing sales tax revenue as one of the determining criterion. He wanted to share the email because context is important. He shared the following quotes from the email: • "I think we need to set aside our personal biases and use criteria that support the economic vitality of Edmonds. Using absolute numbers like sales tax and numbers of employees accomplish that." • "Is it fair to support an Asian owned business instead of a white owned business with the same number of employees? I don't think so. We do not have an affirmative action program." • "I think a sliding scale for sales tax and a sliding scale for employees is fairer." • "Try running your hypothetical spreadsheet with sales tax and without credits for location and racial biases to see what happens." Mayor Nelson said as the money the Council is considering is federal CARES Funds, it is important to understand what Congress intended. For example in the $350 billion Paycheck Protection Program (PPP), Section 1102 of the CARES Act states the Administrator shall issue guidance to lenders to ensure that processing and disbursement of COVID loans prioritizes small businesses that are underserved including socially and economically disadvantaged individuals and women. Socially and economically disadvantaged individuals include Black, Hispanic, Asian, Native American, Asian Pacific American and other minorities pursuant to Section 8 of the Small Business Act. Analysis of the Congressional Research Service on the Small Business Act 8(A) program states, The Small Business Act includes the opportunity to fully participate in our free enterprise system by socially and economically disadvantaged persons is essential if we are to obtain social and economic equality for such persons and improve the function of our national economy. In 1978 Congress amended this to define what socially disadvantaged businesses include, "subject to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities." Mayor Nelson relayed in April 2020 a Brookings Institute report said there are continuous structural and gender disparities in business ownership. Today People of Color represent 40% of the population and only 20% of the nation's business owners with employees, women represent 5 1 % of the population but only represent 33%, of business owners with employees, and large banks approve 60% of loans by white small business owners and only 21 % of loans to small Black business owners. Yet since the Great Recession, Edmonds City Council Approved Minutes June 23, 2020 Page 13 between 2007 and 2012, People of Color businesses have added 1.8 million jobs and businesses owned by white males have lost 800,000 jobs. The federal government has long acknowledged the barriers that People of Color face. The reality is you cannot have equality if you don't have equity. The Council has the unique opportunity to prioritize those who face systemic barriers and to have successful businesses and he hoped the Council took advantage of that by implementing the CARES Act recommendations. Councilmember K. Johnson raised a point of order. She took exception to Mayor Nelson reading a private correspondence she had with a director and shaming her in public. It has nothing to do with the Council's decisions regarding the CARES Act funding and she felt he was acting outside is role as mayor, which was to run the meeting, not give testimony and not embarrass people. Economic Development/Community Services Director Patrick Doherty reviewed the whereas clauses in the draft Edmonds CARES Fund ordinance, highlighted the following amendments: • Remove "storefront" in four locations in the whereas clauses • Add "some" following the removal of the second "storefront" Mr. Doherty reviewed the amendments to the Now Therefore section of the ordinance, highlighting the following amendments: • Section 4 o Add "of' and delete "up to" before $300,000 in Section 4(B) o Delete "up to" prior to $50,000 in Section 4(B) o Add the following sentences to the end of Section 4(B): "Grant awards shall be in amounts up to $1,000 for households of one to two members, while grant awards may be in amounts of up to $1,500 for households of three or more members. An additional Snohomish County -based human services organization shall be engaged by the City to assist in administration of the existing Program." o Delete Section 4(C)(i) - "storefront businesses" o Amend Section 4(C)(ii) — to read, "Businesses with ene zero to thirty employees (part-time and full-time combined) o In second grouping of roman numerals in 4(C), add paragraph ii that reads, "Particular consideration will be given to those businesses that have not received federal, state or county government assistance, and secondary consideration will be given to those businesses that received lower -than -requested amounts of federal, state or county government assistance;" • Add new Section 5 that reads, "In the case that there is any unused, City of Edmonds allocation from the Federal CARES Act funds remaining one week prior to the Department of Commerce invoice deadline, the amount of that allocation shall be used to purchase personal protective equipment and supplies for use by the City and/or for distribution to direct -service, community - based care centers for the elderly." • Add new Section 8 that reads, "The Administration shall provide the City Council and general public a monthly written report about the amount of aid provided by the City, the purpose and criteria by which it has been distributed, the reimbursement received from the Department of Commerce, and any other pertinent information regarding the grant programs outlined in Sections 4(B) and 4(C) above. • Section 10, remove "storefront" businesses in 7t' line Councilmember Distelhorst said Section 8 should replace Section 7 related to monthly reports for both sections 4(B) and 4(C). Mr. Doherty relayed the organizations as well as the Administration will provide monthly reports. He agreed the reporting requirements could be combined into one section. Councilmember Distelhorst advised that was the intent at last week's meeting. Edmonds City Council Approved Minutes June 23, 2020 Page 14 Councilmember Distelhorst referred to the scoring criteria, although not part of the ordinance, he appreciated Mayor Nelson's statement and facts regarding how disadvantaged some businesses are. He suggested in the first criterion, "businesses owned by POC, women, veterans, minorities," a point be awarded for each criteria. For example, a business owned by a woman POC would receive two points versus one point. With regard to the "Received other grants" criterion, he recalled the intent was the greatest consideration be given to businesses that received no money; however, the proposed criterion awards 1 point to a business that received $25,000+. He suggested that level receive 0 points instead of 1 point. With regard to the criterion "located out of the Bowl," and "Creative -sector business in Creative District" he suggested if the intent was to give particular consideration to businesses outside the Bowl, a business outside the Bowl receive two points instead of one. Councilmember Distelhorst requested Mr. Doherty and Mayor Nelson review the criteria again and focus on disadvantaged businesses that the City wants to support and to have continue doing business in the City. Mr. Doherty reviewed the proposed Selection Criteria and Numerical Rating matrix: Criterion Scores Business owned by POC, women, veterans, minorities Yes — 1 No-0 Received other grants $25,000+ - 1 $10,000425,000 — 2 $5,000410,000 — 3 0-$5 000 — 4 Business loss 30-50% — 1 50-70% — 3 70%+ — 5 Located out of the Bowl Yes — 1 No-0 Creative -sector business in Creative District Yes — 1 No-0 Number of employees Under 5 — l 5-10-2 10-15 — 3 15-20 — 4 20+ — 5 Mr. Doherty explained the Creative District covers most of downtown, but the criterion is related to creative -sector businesses in the Creative District, a substantial subset of the businesses in the Creative District. There are 2,113 business in the City, 933 in the Bowl and only a percentage are creative -sector businesses. With regard to the number of employees, the proposal is that business that have the opportunity to employ or bring back more employees are of greater value at this time. Councilmember Paine relayed she called Mr. Doherty asking questions about the changes she included in her motion but did not see in the final draft. Her motion will change "invoice deadline" to an "expenditure deadline" and extend the time period from one week to ten days, and delete "for the elderly" from the end of new Section 5 as her intent was to distribute PPE and supplies to any direct -service, community based - care centers. Amendment 1 COUNCILMEMBER PAINE MOVED, SECONDED BY COUNCIL PRESIDENT FRALEY- MONILLAS, TO AMEND TO REPLACE SECTION 5 WITH THE FOLLOWING LANGUAGE: "IN THE CASE THAT THERE'S ANY UNUSED, CITY OF EDMONDS ALLOCATION FROM THE FEDERAL CARES ACT FUNDS REMAINING TEN DAYS PRIOR TO THE DEPARTMENT Edmonds City Council Approved Minutes June 23, 2020 Page 15 OF COMMERCE EXPENDITURE DEADLINE, THE AMOUNT OF THAT ALLOCATION SHALL BE USED TO PURCHASE PERSONAL PROTECTIVE EQUIPMENT AND SUPPLIES FOR USE BY THE CITY AND/OR FOR DISTRIBUTION TO DIRECT -SERVICE, RESIDENTIAL -BASED CARE CENTERS." Councilmember L. Johnson raised a point of order that there had not been a motion to approve the ordinance. Mr. Taraday that was typically done, but the Council did not always abide by that convention. He discouraged the Council from getting hung up on form over substance. If the Council wished, it would be in order to make a main motion first. Councilmember Distelhorst asked if the main motion made last week carried over. Mr. Taraday answered the motion was continued to a date certain so that main motion is pending. Therefore, Councilmember Paine's amendment is in order. Main Motion curried over from the June 16, 2020 meeting: COUNCILMEMBER PAINE MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO APPROVE THE PROPOSED ORDINANCE, AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, DECLARING AN EMERGENCY AND CREATING A NEW EDMONDS CARES FUND WHICH SHALL BECOME EFFECTIVE IMMEDIATELY. Action on Amendment 1 AMENDMENT CARRIED UNANIMOUSLY. Amendment 2 COUNCILMEMBER L. JOHNSON MOVED, SECONDED BY COUNCIL PRESIDENT FRALEY- MONILLAS, TO AMEND THE WHEREAS THAT BEGINS, "WHEREAS MANY LOCAL RESIDENTS IN LOWER INCOME HOUSEHOLDS, INCLUDING THOSE AT OR BELOW 60% OF SNOHOMISH COUNTY MEDIAN INCOME..." TO REPLACE "MANY" WITH "SOME." Councilmember L. Johnson said with that change, it would match the preceding whereas clause that refers to "some businesses in Edmonds." Action on Amendment 2 UPON ROLL CALL, MOTION CARRIED UNANIMOUSLY. Councilmember L. Johnson agreed with Councilmember Distelhorst that in the criterion "received other grants," $25,000+ should be 0 points. She suggested the range of $10,000 - $25,000 was quite large and suggested 0 points for $25,000+, 1 point for $13,000 - $25,000 and 2 for $10,000 - $15,000 and so on. With regard to the number of employees criterion, she said someone with 20+ employees who only had a 30% business loss and someone with under 5 employees with a 70% loss would get the same number of points even though there was a larger business loss. She suggested balancing that. She suggested the number of employees criterion be changed to 0 points for under 2 employees, 1 point for 2-10 employees, 2 points for 10-20 employees and 3 points for 20+ employees. Mr. Doherty agreed the criteria could be tweaked. With regard to a business that had a really high loss but lower employees versus a business with less loss and more employees, it was not necessarily a wash because there were multiple factors in the scoring. That was the point, just because someone had more employees or had a higher business loss, they would not necessarily receive a grant. He referred to his analysis of the criteria using 400 hypothetical businesses. Councilmember Buckshnis appreciated the report from Wellspring about the applications. She was confused by the City would now be paying an administrative fee when the original proposal was a passthrough. She asked why the CARES Act funds were not going to be a passthrough. Mr. Doherty recalled Edmonds City Council Approved Minutes June 23, 2020 Page 16 that was introduced at last week's meeting although maybe not voted on. He agreed it was not part of the first $100,000 for the Housing and Supplementary Relief Fund and the City was fortunate to find two agencies willing to work for no fee. There was discussion at last week's meeting that it made sense to include a small overhead fee if there were three agencies and the amount was increased by $350,000. Staff may have taken that discussion to heart without it being expressly voted on. It does make sense to ask the organizations the minimum amount they need, and in good faith to give them some amount. Councilmember Buckshnis said the minutes indicate that was never voted on. She said that is an administrative issue; if the Administration feels a small administrative fee is appropriate because the amount has increased from $100,000 to $300,00, that is the Administration's prerogative. She requested the Council be informed. Councilmember Buckshnis found it interesting that applications were submitted from zip codes that were not in Edmonds. She asked if it was clear to the organizations who are accepting applications that the funds are to be distributed to Edmonds residents. Mr. Doherty answered in the State grants that were administered by the Snohomish County Economic Development, many people had an Edmonds zip code but did not live in the city limits. That application effort received 133 total applications, 10 of which were not actually in Edmonds. A Zoom meeting was held with the organizations about verifying addresses utilizing an online webtool to determine if an address was in Edmonds. The organizations volunteered to do that work themselves for no compensation because they are trying to protect the applicants identity as much as possible. Councilmember Buckshnis said the organization should receive a fee, even for the $100,000. Mr. Doherty relayed the organizations indicated they are already under contract for the $100,000 and are okay not receiving a fee for that. Councilmember Buckshnis agreed with Councilmember Distelhorst that a woman POC business owner should receive two points rather than one. It is important to recognize ethnicity and heritage as well as gender. Amendment 3 COUNCILMEMBER DISTELHORST MOVED, SECONDED BY COUNCIL PRESIDENT FRALEY-MONILLAS, TO AMEND TO REPLACE THE CURRENT SECTION 7 AND 8 WITH A SECTION 7 THAT READS: "ANY ORGANIZATION ASSISTING THE CITY IN PROVIDING EMERGENCY AID UNDER SECTION 4(B) SHALL PROVIDE A MONTHLY WRITTEN REPORT TO THE CITY. THE ADMINISTRATION SHALL PROVIDE THE CITY COUNCIL AND GENERAL PUBLIC A MONTHLY WRITTEN REPORT ABOUT THE AMOUNT OF AID PROVIDED BY THE CITY, THE PURPOSE AND CRITERIA BY WHICH IT HAS BEEN DISTRIBUTED, THE REIMBURSEMENT RECEIVED FROM THE DEPARTMENT OF COMMERCE, AND ANY OTHER PERTINENT INFORMATION REGARDING THE GRANT PROGRAMS OUTLINED IN SECTIONS 4(B) AND 4(C) ABOVE." Action on Amendment 3 MOTION CARRIED UNANIMOUSLY. Councilmember Paine asked Mr. Doherty to describe the recruiting and phasing process for how this will be operationalized. Mr. Doherty answered if the Council approves the ordinance tonight, there will be a press release, announcement on the website and social media and as well as a flyer in five languages distributed by staff. He learned last week that Snohomish County has released another grant program, a second phase of the Business Relief, Recovery and Resiliency (R3) grants. The recipients of the first round of grants will be notified tomorrow and then applications for the new grant are due Friday with decisions issued on July 13"'. Since one of Edmonds' criterion is what other assistance businesses have received, it may make sense to advertise but not make decisions until Snohomish County makes their decisions which Edmonds City Council Approved Minutes June 23, 2020 Page 17 would delay things about two weeks. He recognized the City did not want to delay but it was important not to double the grant awards from the county and city. Councilmember Paine said that makes some sense. She was stunned that the State, who handles business licensing does not have solid email addresses for businesses. Mr. Doherty said the email addresses the City has will be used which is about 50-60%. Council President Fraley-Monillas referred to the first selection criterion, "business owned by POC, women, veterans, minorities" and asked how minority differed from POC. Mr. Doherty answered there are other minorities in addition to POC, such as disabled individuals, LGBTQ individuals, etc. Council President Fraley-Monillas suggested adding parentheses with that information. Mr. Doherty said the online application portal is very explanatory, the matrix is simply a summary. Council President Fraley-Monillas suggested for each of the categories that someone fits into in the business ownership criterion, they should receive one point. Mr. Doherty said in looking at what the state, county and nearby cities are doing, their question on the application was yes or no. Having one point for each could sway the criteria and would become a big percentage of the total. The total possible points is 17 and adding a point for each category in the business owner criterion could have a large impact. Staff is still operationali zing how the scoring will work. He suggested a 0, 1, 2 scoring for that criterion. Council President Fraley-Monillas understood that could be a total of four points for that criterion, but it seems to match the criteria in the federal guidelines. She suggested looking at that criterion more closely, commenting if someone fits that criterion, they should get some level of preference. Councilmember K. Johnson commented there is a range of points between 3 and 17 and depending on how the pointes are added, a single point could be worth 6% if there is a full 17 and if there were 6 points with a 3 point advantage, that is 50%. In reflecting on how transportation contracts are scored, after the scoring is completed, a 10% bonus is awarded to a woman -owned or minority -owned enterprise. She asked if using that criterion as a bonus had been considered. Mr. Doherty said that was not the proposal, giving points is a bonus. Amendment 4 COUNCILMEMBER K. JOHNSON MOVED, SECONDED BY COUNCILMEMBER OLSON, TO REPLACE THE LANGUAGE IN THE FIRST CRITERION AND USE A PERCENTAGE BONUS THAT WOULD BE ADDED TO THE RESULTING SELECTION CRITERIA IF A BUSINESS IS ANY OF FOLLOWING, A) OWNED BY PEOPLE OF COLOR, WOMEN OR VETERANS, B) LOCATED OUTSIDE THE EDMONDS BOWL, OR C) A CREATIVE SECTOR BUSINES WITH THE STATE -CERTIFIED EDMONDS CREATIVE DISTRICT. Councilmember K. Johnson commented this a very sensitive concept; the bonus could be 10% or 20% or whatever is fair. The scoring needs to be above reproach and be fair to all business owners. She was concerned that the points were not a consistent level and it depended on the number of points a business starts with and how many they receive and could range from 6% to 50% and that was not what we want. Councilmember Paine asked if Councilmember K. Johnson was proposing a 10% bonus for each category or a single 10% bonus if a business met one of the categories in that criterion. Councilmember K. Johnson answered a single 10% bonus. Mr. Taraday said Councilmember K. Johnson emailed him that motion prior to the meeting and he shared his screen to illustrate the effect it would have on the ordinance: • Delete subsections d and e ■ Add subsection f with the language provided by Councilmember L. Johnson Mr. Doherty said if someone received a lower score because they received a fair amount of grants already, their business loss was the qualifying amount and maybe they have a smaller number of employees, a 10% Edmonds City Council Approved Minutes June 23, 2020 Page 18 bonus would not help them much and actually would be disadvantage by a system that adds percentage to a lower score versus the proposal whereby they would receive additional points. Council President Fraley-Monillas did not support motion as she believed the way staff has proposed the scoring is fairer for businesses that have had the biggest losses and the most struggles. This is not a transportation project, this is related to businesses and people surviving the effects of the virus. Councilmember Buckshnis agreed way the way the scoring was written was preferable and it starts to get muddied by adding a 10% bonus as the 10% would differ based on a business' total points. Action on Amendment 4 MOTION FAILED (1-6), COUNCILMEMBER K. JOHNSON VOTING YES. COUNCILMEMBER BUCKSHNIS CALLED THE QUESTION. Councilmember K. Johnson said she had another amendment. Council President Fraley-Monillas raised a point of order that the question had been called and that was not debatable. Mr. Taraday advised the call for the question had not been seconded. COUNCIL PRESIDENT FRALEY-MONILLAS SECONDED THE CALL FOR THE QUESTION. Mr. Taraday advised the vote to call the question required a super majority vote. Councilmember Olson raised a point of order, that Councilmember K. Johnson advised she had another amendment prior to the motion to call the question. COUNCILMEMBER BUCKSHNIS WITHDREW THE CALL FOR THE QUESTION. Amendment 5 COUNCILMEMBER K. JOHNSON MOVED THAT CONSIDERATION BE GIVEN TO BUSINESSES WITH HIGHER SALES TAX PAYMENTS TO THE CITY. MOTION DIED FOR LACK OF A SECOND. Action on Main Motion Approval of Ordinance No. 4189 as amended UPON ROLL CALL, MOTION CARRIED (6-1), COUNCIL PRESIDENT FRALEY-MONILLAS AND COUNCILMEMBERS DISTELHORST, BUCKSHNIS, OLSON, PAINE AND L. JOHNSON VOTING YES; AND COUNCILMEMBER K. JOHNSON VOTING NO. 9. STUDY ITEMS 1. BOYS AND GIRLS CLUB BUILDING USE AGREEMENT ADDENDUM NOA This item was removed from the agenda under Agenda Item 4 2. YOUTH COMMISSION ORDINANCE AMENDMENTS Deputy Parks & Recreation Director Shannon Burley reviewed: + Youth Commission Background o June 2018 - Council established City's first Youth Commission o December 2018 through June 2019 - two rounds of interviews and appointments by Council o Commission consists of 11 positions of 1-year terms o Six commissioners departing, five remaining Edmonds City Council Approved Minutes June 23, 2020 Page 19 o June 2020 recruitment and appointments delayed due to COVID impacts • Ordinance Amendments 1. Expand term from 1-year to 2-years -Commissioners need more time. o It takes more than one year to have the kind of impact these incredible students aspire to have o Having current members re -apply takes time away from their ability to complete spring / summer projects for the Youth Commission o Proposed Solution: ■ Focus recruitment on incoming sophomores and Juniors; automatically place students into 2-year terms - eliminating the need to reapply if returning and in good standing 2. Align Commission activity with academic calendar - Summer is down time for family, vacation and mental break o Assembling the Youth Commission in July and August has proven difficult (often due to family vacations not within the Youth Commissioners control) o Difficult to get a quorum, difficult to make significant progress on projects. Further, most of their outreach is to peers, who are also not in school o Proposed Solution: ■ Meet the first and third Wednesday of each month September - June. July and August meetings will be considered Special Meetings 3. Recruitment change from spring to fall - fall recruiting better than spring o Spring time is very busy for students with finals, prom, theater presentations, graduation prep and so much more o Recruiting and seating members in June, right before summer break is an awkward start to their experience o It is difficult to kick off a great project or capitalize on momentum o Proposed Solution: ■ Recruit when school starts up, students are picking clubs to join and signing up for extracurricular activities. Seat members in October; will lose some to graduation but will enable a school year of productivity. • With adoption of this amendment the following positions would be filled in the fall: o Seat 3 - Council Member Distelhorst o Seat 4 - Council President Fraley Monillas o Seat 5 - Council Member Buckshnis o Seat 8 - Council Member L. Johnson o Seat 9 - Mayor Nelson o Seat 11 - Alternate - Mayor Nelson • In addition, with adoption of this amendment the following position would roll over into next year without requiring a new application process and maintaining continuity of the work being done: o Seat 1 - Owen Lee, Secretary - Mayor Nelson o Seat 2 - Sydney Pearson - Council Member K. Johnson o Seat 6 - Jacob Sawyer - Council Member Olson o Seat 7 - Caitlin Chung, Treasurer - Council Member Paine o Seat 10 - Brook Roberts - Alternate - Mayor Nelson • Staff s recommendation: forward amended ordinance to Consent Agenda, authorizing the Mayor to sign. Councilmember Olson referred to the chart of Appointing City Council Positions and Corresponding Edmonds Youth Commission Positions on packet page 168 and suggested while the Council was making other changes to the ordinance, Council positions be lined up with the corresponding Youth Commission positions to make it simpler. She asked whether there was any value or purpose to the existing disjointed number pairing. Ms. Burley answered the Mayor appoints position 1 so Council appointments begin with Edmonds City Council Approved Minutes June 23, 2020 Page 20 Youth Commission position 2. If the intent was simply clerical related to changing the numbers, it would be relatively easy, but reassigning commission members would be more complicated and it would change which Councilmembers appoints new commissioners in the fall. She was unsure of Councilmember Olson's intent. Councilmember Olson said it was an opportunity when other changes are being made to line up the numbers. Ms. Burley said the intent is not to require returning members to reapply in the fall. Mr. Taraday explained the term length was originally unknown and there was a decision to bracket the Mayor's appointments on either side of the Council's appointments on the theory that commissioners terms might run with the Council positions and the Mayor's appointments would not occur at the same time. There was no real reason to retain the current numbering. Councilmember L. Johnson agreed with and appreciated Ms. Burley's proposed amendments to the ordinance, based on her short amount of time with the commission, but more so as a parent of two high school students. The changes are appropriate for the reality of the life of high schoolers and will make for a stronger Youth Commission and the ability to carry out their ideas and it would be a shame not to give them time to bring their ideas to fulfillment. She encouraged the Council to move the amendments to the Consent Agenda. Councilmember Paine agreed with proposed changes and moving the amendments to the Consent Agenda, commented from what she has seen, the Youth Commission does awesome work. COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER OLSON, TO EXTEND THE MEETING UNTIL 10:20 P.M. MOTION CARRIED UNANIMOUSLY. COUNCILMEMBER OLSON MOVED TO ALLOW THE ADMINISTRATION TO MAKE THE CHANGE TO LINE UP THE COUNCIL POSITIONS AND THE CORRESPONDING EDMONDS YOUTH COMMISSION POSITIONS HOWEVER THEY FEEL THE NEED TO DO THAT SO IT DOES NOT MESS UP ANYBODY'S CONNECTIONS. MOTION DIED FOR LACK OF A SECOND. It was the consensus of the Council to forward the amendments to the Consent Agenda. 3. DSHS DEVELOPMENT DISABILITIES ADMINISTRATION INTERLOCAL AGREEMENT RENEWAL Parks, Recreation & Cultural Services Director Angie Feser explained this is the renewal of an Interlocal Agreement (ILA) between the City of Edmonds and the Washington Department of Social and Health Services for the Respite in Community Settings Program. This program, with the assistance of a caseworker, places disabled individuals into Edmonds recreation programs of their choosing and after completion of the recreation program, the City is reimbursed by DSHS. This program, which been in place since 2012, usually has less than a dozen participants in a year. Participants attend taekwondo, fitness and other summer programs. She requested the Council move this to the Consent Agenda. It was the consensus of the Council to forward the ILA renewal to the Consent Agenda. 4. JUNE FINANCIAL REPORT Acting Financial Director Dave Turley advised the information provided tonight will address the budget impacts from the COVID-induced crisis. He suggested keeping it at a high level rather than getting into the details like with monthly reports. When he talks about finances, he likes to talk about more than the numbers, he likes to explain why they are what they are and where they came from. He noted no one knows what the local economy will be like in two, four or six months. At this point enough specific expenditure cuts have been identified to get through this year without furloughs or layoffs. Edmonds City Council Approved Minutes June 23, 2020 Page 21 Mr. Turley relayed people often ask why Edmonds in a good enough situation that the City is not considering furloughs and layoff like neighboring cities and whether the City is financially sound and paying attention to finances. With regard to revenue structure, he pointed out not every city is the same; neighboring cities can have the same population and square miles but very different revenues and expenses. Some revenues are very stable year-to-year and others are quite volatile. Sales tax is one of the most volatile of the major revenue sources. Other cities in this area with big shopping malls may be about the same population as Edmonds, but their General Fund gets approximately 42% of its revenue from sales tax; Edmonds gets 19% of its revenue from sales tax. Mr. Turley explained property tax is a very stable revenue, the City nearly always collects 100% of property taxes. Utility tax is also very stable revenue source. If Edmonds were to lose 50% of the sales tax revenue in year, which would be a huge drop, that would be about $4 million, a very small part of the General Fund. In a city where sales tax revenue is 42% of the General Fund, General Fund revenues disappear almost overnight in an economy like what is experienced right now. Edmonds has a higher percentage of stable revenues and a lower percentage of volatile revenues. That means when the economy is doing well, those other cities are getting rich and have big General Funds; Edmonds just plugs along. When the economy does poorly, those other cities drop off the cliff and Edmonds continues to plug along. The current economy doesn't affected Edmonds as much as it has some cities in the area. Mr. Turley displayed a graph of General Fund Revenues, advising General Fund revenues for the five months ending in May are $1.3 million behind where they were this time last year. Although that sounds like a lot, he assured it was really not, because $600,000 of it is property taxes which are behind due to Snohomish County's two month extension for residents to pay property taxes. Citywide from January through May revenues are only $175,000 different than this time last year, the City has collected approximately $35 million citywide which is only $175,000 different than last year, another example of the City's stability. General Fund YTD actual revenues through May are $17.5 million, the budget YTD is $19.1 million, about $1.3 million below, but most of that is property taxes which he expected to be paid next month. Sales taxes are about $195,000 below this time last year, through May the City has collected 96% of budget in sales taxes. YTD REET revenues through May were budgeted at $2.7 million. REET revenues are the source for a great deal of project funding such as Civic Field, the waterfront project, etc. The more REET revenue the City collects, the less that the General Fund has to contribute to those projects. REET revenue collection through the end of May is $198,000; the budget was $173,000 so REET revenue is ahead of last year, a good sign for that revenue stream. Mr. Turley displayed an Updated Forecast for revenue and expenditures that included the amended budget, May's forecast, and a more optimistic and a less optimist June forecast. The more optimist forecast illustrates a loss of $3 million instead of $4 million. The less optimist forecast illustrates if things went really bad over the next several months, it is possible $6 million in General Fund revenue could be lost. Approximately $6.2 million in expenditure reductions (without furloughs and layoffs) have been identified if the economy went extremely bad. Those reductions include: 0 General Fund o Supplies and professional services - $1.2M o Positions remaining vacant, travel, training - $1.3M o Reduction in capital projects to be funded out of General Fund this year— $3M o Total: $5.5M • Non General Fund Edmonds City Council Approved Minutes June 23, 2020 Page 22 o Supplies and professional services - $100,000 o Specific items such as vacant positions, etc. - $600,000 o Total $700,000 Councilmember Buckshnis requested Mr. Turley share the Updated Forecast with the City Council. She complimented him on the investment portfolio, pointing out the investments dropped from $63 million to $60 million. She was interested in where the approximately $2.3 million went in the investment portfolio. Mr. Turley answered investments and bonds went down over the last few months, most of it due to interest rates dropping so people were calling their bonds. At the same time, the rate that bonds were dropping was faster than the State pool was dropping so money was left in the State pool because the rate was higher. Cash is either in bonds or investments, the State pool or the checking account. If bond investments reduce, it means investments in the State and County pool went up. Council President Fraley-Monillas expressed appreciation for the report. She relayed the Council needs to have a budget retreat soon and she was uncertain how to accomplish that other than perhaps on Zoom. She asked Mr. Turley if he had considered timeframes for a budget retreat. Mr. Turley relayed staff is planning a budget kickoff July 6; that can be either staff only or staff and Council and call it a budget retreat. Council President Fraley-Monillas offered to discuss it with Mayor Nelson. 5. WAIVING RENT PAYMENTS FOR THE CHAMBER OF COMMERCE FOR JULY- SEPTEMBER 2020 Council President Fraley-Monillas proposed waiving three months of the Chamber's rent. She relayed the Chamber is experiencing extreme financial issues and are considering furloughs and layoffs while working hard to keep businesses open. The Chamber has not been able to hold their normal fundraising events like the Taste, the Car Show or the 0' of July and are struggling to keep their doors open. If the Chamber does not stay open, there is discussion about it becoming a volunteer organization. While that is great, she was unsure the same events would be possible in the future with a strictly volunteer organization. She understood the City cannot support the Chamber, but the City could waive their rent similar to rents that were waived for tenants at the Frances Anderson Center. She suggested waiving their rent for July, August and September; that is only approximately $2200; not a lot to the City, but it may mean a lot to the Chamber. Councilmember Olson said she has been concerned in the past with throwing the words "community partner" around loosely. By definition, the Chamber has been a community partner for the City; many of the events that people think are City events are actual Chamber events. It takes some staff to mobilize all the volunteers involved in the events that Edmonds citizens enjoy and associate with the City's identity. She proposed waiving the Chamber's rent for six month instead of three months. Councilmember Distelhorst agreed this was a great idea and was sorry the Council had not discussed it sooner. He expressed support for waiving the rent for three or six months, finding both reasonable. Councilmember Paine echoed Councilmembers Distelhorst and Olson's comments, pointing out the Chamber adds a lot to the community. COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER OLSON, TO NOT CHARGE THE CHAMBER OF COMMERCE RENT FOR SIX MONTHS, THROUGH THE END OF THE YEAR. Councilmember Buckshnis noted there were funds included in the 2020 budget for the Chamber for the first time. She expressed support for the motion. Edmonds City Council Approved Minutes June 23, 2020 Page 23 Councilmember K. Johnson raised a point of order, this is a discussion item and the correct action is to move it to the Consent Agenda, not to take a vote tonight. City Attorney Jeff Taraday agreed it was listed as a study item on the agenda, but the Council is not bound by the designation of study and action items if it does not want to be. COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER PAINE, TO EXTEND THE MEETING FOR 10 MINUTES. MOTION CARRIED UNANIMOUSLY. Councilmember Olson said forwarding it to the Consent Agenda would work. The City has provided funds to the Chamber Foundation to administer grants and she asked for confirmation that that was not a gift of public funds. Mr. Taraday responded several Councilmembers have articulated the important way in which the Chamber benefits the community at large. It is clear from the Council's deliberations that the waiver of rent was intended to benefit the community and the City of Edmonds as a whole and not a private benefit to the Chamber. Although the Chamber incidentally benefits, the purpose was to benefit the community and therefore would be allowed. Council President Fraley-Monillas advised the City gave the Chamber $10,000 early this year. That was a good start and waiving their rent was the least the City can do. The Chamber is a private business, the same as the BID, DEMA or other organization, but waiving their rent is a minimal thing the Council can do. She summarized it was not a lot but it may help. MOTION CARRIED (6-0-1), COUNCILMEMBER K. JOHNSON ABSTAINED. 10. MAYOR'S COMMENTS Mayor Nelson relayed the governor announced the Washington Secretary of Health is issuing an order mandating masks for all Washington State effective on Friday. Every Washingtonian in an indoor or outdoor public space when unable to physically distance from others will be legally required to wear a face covering or mask. Mayor Nelson announced there will be another Pedestrian Friendly Main Street this weekend, expanded to include the roundabout around 5"' Avenue as well as a one hour extension on Saturday. I1. COUNCIL COMMENTS Councilmember Paine expressed huge thanks to the community members who emailed Councilmembers. The discussion regarding the CARES Act funding has been vibrant which means it is very needed. She looked forward to distributing the funds to community members and businesses. The pedestrian street was a big hit and it was great to see people out. She supported extending the closure up 5"' Avenue almost to Walnut on half the street to allow some vehicle travel. Councilmember Paine expressed appreciation for everyone hanging in. This has been a tough week for members of the community who are People of Color. People are doing the best they can and learning as much as can; it is important work with many youth as leaders. She liked seeing the focus on the Youth Commission tonight. Councilmember K. Johnson said in listening to a lot of the speeches over the last two weeks she was reminded by one speaker that there are ways to participate in making the community a more equity place, 1) fill out the census; the census is very important for determining how federal and state funds are allocated, and 2) register to vote and vote because your vote counts and all government is local. Edmonds City Council Approved Minutes June 23, 2020 Page 24 Councilmember Distelhorst reported last week along with Councilmember Paine, he was proud to march behind student leaders from the Edmonds School District Black Student Unions. He hoped the School Board and faculty listen to and work with students. Like Councilmember L, Johnson he now has a high school student; kids need to feel safe, feel seen and to know that they are part of the district and its curriculum. Councilmember Olson referred to cancel culture or call out culture; it can be seen watching Council meetings, on social media, virtually everywhere and it's sad. It has ruined days, sometimes ruins lives and notably no changes of heart for the better. She relayed her favorite quote from a character in "The Art of Fielding" who is speaking at a funeral who says of the deceased, "You told me once that a soul isn't something a person is born with but something that must be built, by effort and error, study and love. Councilmember Olson said everyone is on a journey and asked that everyone dig deep, find their grace and kindness, keep it out and spread it around. Council President Fraley-Monillas pointed out all emails are public, they are not private. She requested a copy of the email read by Mayor Nelson to see the complete context. She recalled one statement from the email, that it was unfair to support an Asian owned business instead of a white owned business with the same number of employees. Having an Asian Pacific Islander family and an Asian Pacific Islander child sleeping in the other room, she was greatly offended by the email and said everyone on the Council should be offended. With respect to the earlier discussion, Councilmember L. Johnson said diversity is a big part of what makes the community better, both diversity in individuals and diversity in businesses. She had faith that most share her viewpoint. Thinking that was not enough; ongoing work must be done create a more welcoming, safe, inclusive and equitable Edmonds for all. She looked forward to digging down and getting to work on this with the Council and the community; it will be hard work but it is important. 12. ADJOURN With no further business, the Council meeting was adjourned at 10:31 p.m. HAEL NELSON, MAYOR PASSEY4ff�Y Edmonds City Council Approved Minutes June 23, 2020 Page 25 n Public Comment for June 23, 2020 City Council Meeting: 6/23/20 Ken Reidy, Subject: Public Comment for the June 23, 2020 City Council Meeting The June 16, 2020 Council Meeting was confusing. Councilmember Distelhorst's motion about public comments made sense, with the exception of his mention of Agenda Item 5. As there were two different Agenda's - I was unable to tell which Item 5 he was referring to. Things got more confusing after Councilmember KJohnson started talking. Councilmember Buckshnis asked if Councilmember KJohnson was amending Councilmember Distelhorst's motion. Nobody seconded Councilmember KJohnson's motion to amend - Councilmember Olson stated she would support an amendment if a motion to amend had been made. Councilmember Buckshnis did not second Councilmember KJohnson's motion to amend but later in the meeting, Councilmember Buckshnis withdrew her second after Councilmember KJohnson withdrew her motion. Councilmember LJohnson confused it further by saying she supported Councilmember Distelhorst's amendment when he had never made an amendment - he had made a main Motion. After Councilmember Buckshnis asked about 4.1 and 5.1, Councilmember Distelhorst had his hand -raised to clarify but the Mayor gave the floor to City Attorney Taraday instead of Councilmember Distelhorst. Mr. Taraday confused everything further by only discussing part of Councilmember Distelhorst's motion - leaving out the part of his Motion that dealt with email options and the 450 words. Then Council President Fraley-Monillas acted like 4.1 had already been passed. She had to be corrected. After Councilmember Distelhorst's motion was finally voted on, the Mayor announced that 4.1 was the next item even though 4.1 had just ended. It was all very hard to follow. Later in the meeting, Agenda item 8.1, a study item, was completely forgotten about. I think I know where things ended up regarding Councilmember Distelhorst's Main motion, but I can't be sure because the draft meeting minutes are not in the Agenda Packet for the June 23rd meeting. I am concerned that Council has not complied with part of the Governor's proclamation since March 24th. The Governor's proclamation states meetings must provide the ability for all persons attending to hear each other at the same time. That requirement is not accomplished by placing public comments in the meeting minutes that come out in draft form 3 or 10 days after the meeting. The public comments should have been read out loud since March 24th or should have been displayed on the website so all people attending the meeting were effectively able to hear each other at the same time. This problem may go away after the Proclamation period ends - but until it does, I think Council should read the 450-word comments out loud. The City Clerk can do this if Council wants to prevent the public from being confused as to who is making the comments. Hope this helps. 6/22/20 Barbra McLain, Subject: Cares Act Spending I want to thank you so much for taking extra time to deliberate the best way to spend the CARES Act money. I understand that there are many needs in this community and you could spend two or three times as much and still not meet those needs. I am writing this email to urge you to spend as much of it as possible on housing and supplemental relief. When we invest in people and families, they are able to invest in our local businesses and community. We know that the money that is spent keeping families in their housing will be spent in the Edmonds community and give residents the direct assistance that they need. Thank you for your consideration. Edmonds City Council Approved Minutes June 23, 2020 Page 26 6/22/20 Ella Doo, Subject: CARES money I encourage the city council to support low income residents at least a minimum $350K level. Let's keep dollars given to Edmonds with its residents. 6/22/20 Stan Gent, Subject: June 23rd Council Meeting; Agenda Item 8-1. Sewage Treatment Plant Written Comments On behalf of Edmonds Interfaith Climate Action (ICA) we submit the attached public comments for your consideration. While you may hear from staff that this has been looked into before we believe that with the correct technical and financial support is should be seriously considered. Neighboring Edmonds Port and other private facilities represent some of the larger consumers of natural gas in Edmonds. ICA History St. r{V' of a lellerby Pope Francis urging "C<tce to oor C oinmon l Iorim" inspired on inlet• -de muination.d mo—n—tin Edmonds t11e1 grrn• inlo Inlerl:ailb Climale Action (ICA). As world leaders stet to crease the c[imcit,l agreement lu—n•n as the Paris Accord, ICA bold its Icicle-oi'C cvc nt. Around 100 people Parlicipmed iu aprayer --ill and candlelight Processiuu lhreruglr the streels of E'dutouds, in support of the world climate pact, adopted on Drcenrber 12, 2015, For further information or to make n tax deductible dcmnlion, contact g0JaYhnezaa6(oolrue c.. : Al RN Sample ICA Activities Ttuning Iligfoot Edmonds seas a major conunun ity-wide ICA projcet. The 2018 event aimed at helping residents del ermi uc their household'. carbon footprint mid set a goal to help reduce it, while having fun al the sanm lime. "Raising Our Voices,"a 2017 E-th Day event fcalnrecl a sing iu led by hthings, and a spraher represe sling youth suing \Vashinglmt Stale for failing to prolecl include l heir {ntnl e. 0111er e['CIItS runic, and discussions for N6rcrld Haler Day. ICA was a major ealalyet ui the decision forthe Edmond-, Senior Center to nsc 10M,11 clean energy when built in 2020. ICA meetings are held on 1 he second Tlnn•sday of eacli most h. ITER1Fli CLIMATE ACTION Interfaith Climate Action brings together people from diverse faith traditions to advocate for the moral imperative of creating a just and sustainable world GND Edmonds City Council Approved Minutes June 23, 2020 Page 27 06/22/2020 ISEWAGE TREATMENT AND WASTE HEAT RECOVERY AND REUSE 1. SITUATION The City of Edmouds is currently planning to replace its aged sewage solids incinerator in downtown Edmouds. At the same time, the City of Edmonds is seekingways to become a sustainable community by lowering carbon emissions. The downtown sewage treatment plant could be a source of waste heat recovery replacing use of natural gas at neighboring, high gas usage, locations like senior residences, hotel, gymnasium and other adjacent facilities. 2. WHAT IS DISTRICT HEATING District energy is a proven technology that has been around for decades, Most major cities have a district energy system a nd landmark buildings around the world receive thermal energy from a district system. District heating is an underground infrastructure asset where thermal energy is provided to multiple buildings from a central energy plant or plants. Steam or hot water produced at the plant is transmitted 24/7 through highly insulated underground thermal piping networks. The thermal energy is transferred to the building's heating system, avoiding the need for boilers in individual buildings. District heating can help improve energy efficiency, reduce emissions, simplify building operations and maintenance, serve as vital infrastructure, and provide high qualityjobs. Because thermal energy is delivered to buildings in a usable form, customers avoid installing expensive boilers and avoid costs for operations, maintenance, repair and replacement. District heating service simplifies building operations, allow customers precise control over heating and provides flexibility to adapt as occupant needs change or building efficiency improves. The critical advantage is that connecting multiple buildings to a district system creates economies of scale that enable the deployment of more Edmonds City Council Approved Minutes June 23, 2020 Page 28 efficient, resilient local energy resources. This scale also enables integration of cleaner options waste to energy which could significantly cut emissions unachievable on a building by building basis. District heating networks are useful energy infrastructure assets for cities, communities, and campuses. 3. INTERFAITH CLIMATE ACTION1 BELIEVES... 1. Waste heat recovered from sewage incineration is a proven technology used In many locations in North America and around the world. s. ,r:; ,'1 �+nr •,, Ir; ric[en eJ _• 2. Waste heat recovery and reuse from Edmond's downtown sewage treatment facility could significantly reduce carbon emissions. 3. Low natural gas pricing and lack of carbon pricing combine to make waste heat recovery and reuse financially difficult today. The planned retrofit of this plant is an opportunity to design It for waste heat recovery so it can be used if not today then certainly for the future. 4. District heating Infrastructure is well positioned to be a utility service owned by a municipality to the benefit of it citizenry. 1 MISSION STATEMENT: Interfaith Climate Action brings together people fi-om diverse faith traditions to advocate for the moral imperative of creating a just and sustaimible world. VISION: Interfaith Climate Action envisions a courageous local community leading the way in creating a healthy, just, thriving world End of minutes for 6/23/20 Edmonds City Council Approved Minutes June 23, 2020 Page 29