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20170120 City Council Special MeetingEDMONDS CITY COUNCIL RETREAT APPROVED MINUTES January 20 — 21, 2017 The Edmonds City Council retreat was called to order at 12:10 p.m. on Friday, January 20, 2017 by Council President Mesaros in the Library Plaza Room, 650 Main Street, Edmonds, Washington. The meeting was opened with the flag salute. ELECTED OFFICIALS PRESENT Friday. January 20 Dave Earling, Mayor Thomas Mesaros, Council President Michael Nelson, Councilmember (arrived 12:31 p.m.) Diane Buckshnis, Councilmember Dave Teitzel, Councilmember Neil Tibbott, Councilmember ELECTED OFFICIALS ABSENT Friday, January_ 20 Kristiana Johnson, Councilmember Adrienne Fraley-Monillas, Councilmember PUBLIC PRESENT Friday. January 20 Bruce Witenberg STAFF PRESENT Friday, January 20 Al Compaan, Police Chief Phil Williams, Public Works Director Carrie Hite, Parks, Rec. & Cult. Serv. Dir. Shane Hope, Development Services Director Scott James, Finance Director Mary Ann Hardie, HR Director Jeff Taraday, City Attorney Andrew Pierce, Legislative/Council Assistant Jeannie Dines, Recorder 1. WELCOME, OPENING COMMENTS AND LUNCH Council President Mesaros advised Councilmember Johnson and Fraley-Monillas were both ill. He thanked those in attendance, explaining he wanted to hold the retreat in January rather than March as it has in previous years in order to get an early start on the year. 2. GOAL FOR THE RETREAT: SETTING OUR CALENDAR FOR 2017 Council President Mesaros the goal is setting the calendar for 2017, a high-level discussion, not resolving all the topics but identifying the processes to resolve as many as possible during 2017. 3. COUNCIL OPERATIONS DURING 2017 a. Discuss Weekly Meeting Format Council President Mesaros explained, by code, the Council holds a business meeting the first and third Tuesdays and study meetings on the second and fourth Tuesdays. Recent practice has been to mix business and study topics. He proposed changing the code to follow practice as well as to consider how to incorporate committees into that practice. Edmonds City Council Retreat Approved Minutes January 20-21, 2017 Page 1 b. Discuss Potential Council Committees Councilmembers and staff discussed the format of past committee meetings and options for committees and meeting times. • Past practice: Second Tuesday, 6:00 p.m., three committees meet at the same time in different locations in Public Safety building, no cameras, just Councilmembers, staff and occasionally members of the public, one Councilmember appointed chair, committee reports on Tuesday following committee meeting • Options: o Meet 2nd and fourth Tuesdays at 6:30 p.m. for an hour followed by regular Council meeting at 7:30 p.m. o Meet on a day other Tuesday, three Councilmembers on each committee, other Councilmembers able to attend when there is a compelling subject Council and staff comments/suggestions included: • Items proceed more rapidly at Council meetings when first vetted by a committee • Concern with blending business and study sessions • Favor committee meetings, assuming Councilmembers trust each other • Have to trust Councilmembers on committees • Support trying committees. Not sure how an hour meeting before Council meeting followed by Council meeting would work • Perception of a lack of transparency with no camera, need consistent, agreed-upon rules regarding how committee meetings run • In the past, the public attended committee meetings and were able to provide comment. • Favor holding committee meetings on different nights of the week. Past practice of committee meetings taking place at the same time made it difficult for Councilmembers to attend more than one • Like committee concept, biggest issue from staff perspective is potential delay caused by waiting to go to a committee meeting before getting on a Council agenda. Could be addressed by committees meeting twice a month or combined business/study session Council meeting • If meetings are not designated "business" or "study session," could schedule items on any agenda • Pros and cons to all ideas. Good thing about committee structure was informal, intimate setting, opportunity to get more information out, opportunity for public to participate. Disadvantage was once a month and requirement that items had to go to committee first which could result in significant delay. • Could identify items that do not need committee review before going to Council. No issue with all committees meeting on the same night, very efficient • Efficient to have committees on same night, in the past sometimes combined committees if topic of interest to all ■ Committees eliminated because, a) not working and many items that went to committee were followed by presentation to Council, and b) three touch rule. If committees work like they are intended, two Councilmembers vet an issue and it is scheduled on Consent, committee members request additional information, or occasionally items go to full Council • Some topics could go to all three committees to get a reaction/input from more Councilmember prior to presentation to full Council • 80% of items can go from committee agenda to consent agenda • Acknowledge some items require full Council presentation/discussion • Needs to be trust not just among Councilmembers but between Councilmembers and staff • The topics in Parks, Planning & Public Works Committee often overlap • Sensitive issues at Human Resources level, avoid getting into the weeds • Committees could potentially reduce the number and length of executive sessions • Do not support three touch rule Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 2 • Maintain flexibility to schedule items on Council agenda without prior committee review (fast track) • Combine three committees into two, more thorough vetting with more Councilmembers • Level of trust between Councilmembers and between Councilmember and staff is much better now • Potential Committees: o Finance o Parks, Planning & Public Works Committee o Public Safety & Human Resources • Format and frequency of committee meetings o Once a month, retain ability to fast track items • Advantage of committees is can tackle longer range things and affords directors venue to vet things • Prefer to have all committee meetings on the same night • Do not want Council meeting to follow committee meeting • Maintain ability to form task forces and subcommittees as necessary Consensus: Committees are worthwhile. Form three committees (potentially Finance; Parks, Planning & Public Works & Public Safety & HR). Council President Mesaros work with Mayor Earling, Mr. Passey and Mr. Taraday to determine the necessary legislation. C. Utilization of Leeislative Executive Assistant to City Council Council President Mesaros asked Council their expectation of the Legislative Assistant position: • Handle basic admin tasks • Legislative and legal research • Ensure agenda memo uploaded for meeting • Take complaints from citizens • Conduit of information • Drafting legislation • Customer service • Outreach and identify Council Student Representative • Establish tracking mechanism for individual Councilmember items and full Council items • Councilmembers' expectations versus job description (half admin/half legislative) • Legal research topics with critical mass can be shifted to City Attorney • Items that begin with a Councilmember and become full Council items, initial Councilmember should still be the lead Mr. Pierce relayed his expectations: + Standardized procedure for requests + Management of expectations regarding how long a task will take, what can be done in the time available + He offered to provide a legislative bulletin/newsletter to keep Councilmembers apprised d. Working Toeether as a Council _How does Council work together as a groin Council comments included: • When campaigning, heard about need for more respect, trust and collaboration on Council • Observing Council last year and this year, it's better but have a way to go • Individually elected but are a team to make the City a better place to live, focus on that • This is a new era • Lack of communication, conflicts occurred • Elected have own constituents and can agree to disagree Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 3 • If a Councilmember has an issue, go to the Council President • Shocked to learn how many rules there related to abiding by parliamentary procedures • Parliamentary procedures affect ability to ask questions, discuss • Be sensitive to and allow ample time to get Councilmembers' questions answered • Establish customary way for getting questions asked/answered and motion made • Respect is earned, trust can be lost and takes while to build it back, but always willing to collaborate • Boards and commissions have likeminded people, Councilmembers have differences • Roberts Rules provide structure when things get heated • Provide advance notice of items such as Safe City Resolution, avoid rushed, orchestrated processes ■ Respect the process • Good process is collaborative, encourages trust and respect • No surprises • Be careful how use emails to communicate with Councilmembers and staff. When have interpersonal problems, call or meet in person e. Potential Conununity 111-njects Councilmember Tibbott recalled meeting several times with the Executive Director of the Foundation for Edmonds School District who talked about bringing together work parties to box up food for weekend meals. He thought something like that might be fun for the Council or there could be other things the Council could do together such as pulling invasive weeds at Edmonds Marsh. Council and staff suggestions for projects included: • Working with the homeless, gathering things they need • Tree Board Arbor Day celebration: Hutt Park Ivy Pull, April 22 • Mayor's Climate Control Committee, Taming Bigfoot (reduce carbon footprint) • Volunteer Picnic • Invite citizens and staff to participate • Cleaning headstones at the cemetery Consensus: Council President Mesaros and Councilmember Tibbott will develop a proposal and schedule a project 2-3 times/year. 4. PROJECTS WE NEED TO MOVE FORWARD AND/OR RESOLVE DURING 2017 [IN RANDOM ORDER]. DISCUSSION AND PLAN FOR THE FOLLOWING TOPICS: a. Crumb Rubber Council President Mesaros Council relayed the moratorium the Council established expires July 11, 2017. Ms. Hite has provided information regarding an overseas study that was completed recently and an update on the federal process and Councilmember Teitzel distributed the Department of Health study. City Attorney Jeff Taraday suggested discussing whether to wait until the EPA releases their findings which will not happen by July 11, 2017. If the Council is interested in waiting until the EPA concludes its work, the moratorium could be extended. If the Council takes no action, the moratorium expires on July 11, 2017. Consensus: Existing Crumb Rubber Subcommittee report to Parks, Planning & Public Works Committee who will make recommendation to Council. b. Sian Cade Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 4 Development Services Director Shane Hope reported potential amendments are being developed for review and public hearing by the Planning Board who makes a recommendation to the City Council. The deadline for the 120 -day suspension on pedestrian sign is March 7, 2017. She did not think a decision could be made by the Council by then. Conclusion: In progress, staff does not need further direction from Council regarding the sign code. C. Development Code Update Ms. Hope reported the process of updating the Development Code is proceeding; the sign code, the CAO, Hwy 99 Subarea Plan and roundabout area zoning are related to the Development Code update. Council and staff comments/suggestions included: • Needs to have flexibility in the code • Flexibility can lead to contention, slippery slope • The way the City has developed, annexations, etc. streets cannot be used to determine distances, need flexibility to recognize that • When began code update, held interviews with Councilmember and Planning Board Members — some want certainty and others want flexibility • Effects of flexibility last into the future • Flexibility at director level • It is a balance that incudes common sense and flexibility • Development Code requires constant finetuning • Several more parts can be completed this year but update will not be finished this year • Needs to be some discretion, but some sore spots/questionable issues • When make presentation on Development Code Update, identify sections that have been completed Conclusion: Parts of the development code update that can be accomplished in 2017 include.° ➢ Process/procedures ➢ Sign code ➢ Critical area updates ➢ Subdivisions ➢ Multi family design standards d. TBD integration into Council Activities and Agendas Council President Mesaros relayed the Council agreed to take over the duties of the TBD Board. Mr. Williams explained the TBD fee is a local license fee collected by the City that can be spent on anything the RCW identifies as eligible transportation expenses. The State authorized cities/counties to increase the fee from $20 to $40 without a public vote. An increase from $20 to $40 would raise $680,000/year that could be used for capital preservation and/or improvements. Discussion followed regarding revenue opportunities, years the Council has not raised property taxes the allowable 1%/year, philosophy/policy regarding how to raise revenues for transportation projects, councilmanic increases versus increases that require a public vote, and revenue options under the TBD statute that require a public vote. Consensus: Council President Mesaros and Mr. James discuss and schedule presentation to Council possibly in April regarding revenue opportunities including ones the City has taken advantage of and ones it has not, etc. Discussion by Parks, Planning & Public Works Committee and Finance Committee first to identify options. e. FIA ALreement and Potential Regional Fire Authority. Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 5 Council President Mesaros relayed the Interlocal Agreement with FDI is on the extended agenda for next week. Mayor Earling reported he was briefed today by the Interim FDI/Lynnwood Fire Chief Brad Reading. Discussion followed regarding past discussions regarding the formation of an RFA, Lynnwood/FDI RFA open house and options being considered for a future ballot, concern with relinquishing authority on taxpayer dollars to an RFA, whether an RFA would prevent Edmonds from considering a Metropolitan Park District, relinquishing control to the RFA also eliminates the need for the City to pay for fire services, fire services crossing jurisdictional lines, mostly likely partners for an Edmonds RFA, talking with cities who have formed an RFA such as Auburn and Kent about their experience, relocating fire stations as recommended by Fitch & Associates, getting the Interlocal Agreement approved first, and the difference between a fire district and an RFA. f. 2018 Budget Process Council President Mesaros asked how to make the 2018 budget process smoother. Council and staff comments/suggestions included: • Finance committee work on policies to assist departments develop budgets • Concern with scheduling department presentations at end of meeting with no time for questions • Councilmembers submit amendments to budget earlier • Council President steer information from Councilmembers • Budget retreat or solicit Council input on the budget, nice for staff to hear Council desires • Provide budget information earlier in year • Finance Committee work with Finance Director to develop budget calendar • A lot of Council questions this year about where numbers came from (Mr. James distributed comparison of 2015 actual, 2016 budget and estimate, 2017 budget and percentage change) • Council discuss earlier in year regarding items they would like included in budget • Budget discussions early on the agenda • Staff share Council questions with all Councilmembers • If Councilmembers have particularly interest, helpful to know ahead of time so staff better prepared to address at the meeting. Have discussion offline so not surprised at open meeting • Special Council meeting dedicated to budget • Provide staff questions in advance g. Es e�rance Mayor Earling relayed GMA supports Edmonds annexing Esperance but he did not want to annex Esperance until it makes economic sense. Staff's recent revenue/expenditure analysis determined annexation of Esperance would be upside down $400,000. If legislation sponsored by Senator Maralyn Chase passes that provides an extra 0.1% sales tax rebate citywide to cover deficits from annexation, it would generate $800,000, making annexation of Esperance $400,000 to the positive. Discussion included infrastructure costs in unincorporated areas north of 168th that make annexation of that area infeasible, planning process to annex areas outside Edmonds' UGA, requirement for 80% of an area's boundary to be contiguous with a city to qualify for the rebate (met by Esperance), and process that allows annexation without a vote but is subject to referendum. Conclusion: Low probability annexation will happen in 2017, wait to see what happens with legislation. h. Sunset Avenue Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 6 Mr. Williams relayed modifications the Council requested to the pilot project are underway. Painting and striping will be delayed until warmer weather warmer. Some engineering is required on Caspers and 2nd to reduce access to Sunset from the north. Signs have been installed changing the parking from 4 hours to 2 hours. As a great deal of utility work needs to be done on Sunset in the next 5-7 years, it does not make sense to do a lot of work and then tear it up to install a gravity sewer system or pump station. Options will be presented to Council later this year followed by development of a project and funding options. He estimated the cost of utility work on Sunset at $12-15 million. Another issue is the Waterfront Access Project where the best option is from Edmonds Street. Discussion followed regarding: • Pacific Beach trail in San Diego that includes neighborhoods and the waterfront • Designing Sunset like 6th Avenue in the Civic Field Master Plan • Incorporating a boardwalk across the marsh • Incorporating the utility work, overpass, beautification into a comprehensive plan for Sunset, including the cost, and utilizing utility funds and funds for the overpass. Make it look like a destination rather than a patchwork • Railroad owns a great deal of the street north of the angle parking. The available width to the south is larger. There is some budget available to begin design. • BNSF is enthusiastic about the overpass project and willing to provide some funding • Suggestion to have newspaper article regarding Sunset regarding utility work, overpass, beautification, BNSF's ownership, etc. i. Civic Field Ms. Hite reported a final plan will be presented to Council in 1-2 months. Work will continue on SEPA, costing information, a naming process, design development and fund development. The stadium will be removed in the second half of the year and the area landscaped in the interim. Development will be $8-10 million with grants and private funding possibly providing $3-4 million and a bond or levy for the remainder. The Boys & Girls Club will be required to raise funds themselves for any improvements/replacement of their building. If Boys & Girls Club have plans, they will be encouraged to make proposal to the City for a long term land lease. j. SMP Ms. Hope advised next Tuesday is the first presentation/discussion regarding Ecology's recommendation. She expected discussion would continue at a couple more meetings. Ecology has requested a response from the City by March 30. Ecology's presentation will clarify the options. k. CAQ Updates Ms. Hope said updates to incorporate Ecology's June 2106 guidance will be coming back to Council within the next several months. A brief discussion followed regarding what happens when Ecology releases new guidance and the ability for the City to do another update if desired. 1. Strategic Action Plan Council President Mesaros relayed Mr. Doherty's indication that approximately 80% of the SAP items are moving forward and 20% are stalled for a number of reasons including finances, priorities have changed, etc. Discussion followed regarding: • Reevaluating whether to pursue the 20% of items that are stalled • Staff providing an update to Council and identifying items can be removed Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 7 • Including the Planning Board and Economic Development Commission in the update • Some items do not have dollar amounts associated with them which is needed in order to prioritize • Need to update the SAP at some point • In additional to missing pieces such as finances, also missing staff resources • No specifics about public safety • Too many goals Conclusion: Schedule update and discussion of priorities. Include Planning Board and EDC. M. I- Nvv 99 Subarea Plan Ms. Hope advised a public hearing is scheduled on February 21, followed by meetings to review and make a decision. The next step will be drafting development regulations (zoning, design standards) to implement the plan. n. Roundabout (Five Corners) Zoning Plan Ms. Hope recalled the UW Green Futures Lab did a great deal of study related to the Roundabout (Five Corners) area but a lot of things still need to be considered. She was concerned that "tweaking the code" would actually be a huge effort and it was unknown whether the changes would attract desired development. Before that was done, she recommended reviewing the UW study and having a feasibility analysis done regarding whether implementation would have the desired result. Staff ended up doing hundreds of hours of work to implement the UW's study of Westgate; the same would be true for Five Corners. Consensus: Small consultant contract to determine if the work done by the UW Green Futures Lab was still realistic. o. Parkinfy Mr. Williams relayed Mr. Doherty is working with the BID (Ed!); their suggestions will be shared with the City's internal committee. Options that have been considered include striping individual spaces versus block parking, and residential and employee permit programs. P. Public Disclosure and Public Access to City Council This item was postponed to Saturday. q. Waterfront Access This was addressed during the Sunset agenda item. Council President Mesaros commented there is a plan that everyone likes; now the funding needs to be identified. r. Veterans' Plaza Council President Mesaros reported the group is within $1000 of raising all the necessary funds. They would like raise an additional $40,000 to build a kiosk with an electronic link to the Veterans Center at Edmonds Community College. They are also still fundraising for a water fountain. S. Update on SNOCOMISNOPAC Consolidation Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 8 Chief Compaan relayed there have been ongoing conversations between SNOPAC and SNOCOM about consolidation. He is on the joint task force who earlier this week reviewed several proforma scenarios looking at budgets and service levels. The SNOCOM Executive Director Terry Peterson and the facilitator, Karen Reed, who has been assisting the task force will provide updates to the member cities' City Councils in February or March. This is a fabulous opportunity to improve the level of service via some type of consolidation between the two dispatch centers as well as save money via efficiencies. Governance is part of the discussion. The SNOPAC cities and Snohomish County are very supportive and there is strong support from most of the SNOCOM cities. There will be a vote by the member entities later this year. If consolidation of two centers occurs, consideration will also be given to consolidating SERS into same board. Chief Compaan relayed there are two reasons for consolidation, 1) call transfers (25-35% calls coming into SNOCOM are transferred to SNOPAC which causes delays), and 2) SNOCOM, a small center compared to SNOPAC, is easily overwhelmed with calls. Consolidation provides great capacity and addresses the call transfer issue. Conclusion: 30 minute update to City Council on February 7 or March 7 The first day of the retreat concluded at 3:59 p.m. and was followed by a social hour with spouses and guests. SATURDAY, JANUARY 21, 20I7 — CALL TO ORDER The second day of the Edmonds City Council retreat was called to order at 8:35 a.m. on Saturday, January 21, 2017 by Council President Mesaros in the Library Plaza Room, 650 Main Street, Edmonds, Washington. ELECTED OFFICIALS PRESENT Saturday, January 21 Dave Earling, Mayor Thomas Mesaros, Council President Michael Nelson, Councilmember Diane Buckshnis, Councilmember Dave Teitzel, Councilmember Neil Tibbott, Councilmember ELECTED OFFICIALS ABSENT Satttrday. January 21 Kristiana Johnson, Councilmember Adrienne Fraley-Monillas, Councilmember PUBLIC PRESENT Saturday, Januar)l 21 Bruce Witenberg STAFF PRESENT Saturday, January 21 Al Compaan, Police Chief Phil Williams, Public Works Director Carrie Hite, Parks, Rec. & Cult. Serv. Dir. Shane Hope, Development Services Director Scott James, Finance Director Mary Ann Hardie, HR Director Jeff Taraday, City Attorney Scott Passey, City Clerk Andrew Pierce, Legislative/Council Assistant Jeannie Dines, Recorder 4. PROJECTS WE NEED TO MOVE FORWARD AND/OR RESOLVE DURING 2017 (IN RANDOM ORDER). !DISCUSSION AND PLAN FOR THE FOLLOWING TOPICS: P. Public Disclosure and Public Access to Cit -y Council What's happening—regarding, this subject in the legislature? Public Works Director Phil Williams relayed the City's lobbyist indicated there are three bills in this session, one would allow cities to charge a fee for the cost to produce an electronic version of public records; the City is already allowed to charge a per page fee for hardcopy. The media lobby has recently softened on this and a Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 9 modest fee may be acceptable to them. Mayor Earling recalled there is another bill regarding a mediation process. With regard to the cost, City Clerk Scott Passey relayed there is one FTE in the Clerk's Office assigned to responding to public records requests and he works on requests about 6 hours a week. The Police Department has at least one FTE who works on public records requests. Department staff also work on records request. Mayor Earling estimated the cost at $300,000; City Attorney Jeff Taraday estimated the addition of the time that the attorney in his office who works on public records requests, Patricia Taraday, increases the cost to $500,000/year. Mr. Passey said a small group of requesters take up disproportionate amount of the time spent responding to public records requests. The software module that the Council authorized in the 2017 budget will allow the public to make requests as well as seek records online. The software also allows the requester, records requested, time spent on the request, etc. to be visible to the public. Council President Mesaros said the public is unaware of the burden of public records requests; he questioned how to make the taxpayers aware of the $500,000 cost and that only a few make requests. Discussion followed regarding persuading requesters to narrow their requests, requests for emails that require extensive staff review to redact information, a recent request for emails that will take years to fulfill, other cities that make information available electronically in the public domain, looking at what is driving these requests, inability for the City to shift the burden by requiring citizens to do research themselves, difference in the volume of documents produced by a typewriter in the past versus thousands produced via computers and email today, producing a quarterly report of the top ten requesters and the costs and ability for the software to produce an online list on the City's website of public records requests, and other cities that display a list of public records requests online. Mr. Taraday suggested making information available online will help, but the majority of big requesters are doing it for political reasons or because they feel they were wronged by the City in some way. That pattern is unlikely to change by making information available online. Conclusion: Mr. Passey will inform when the software is operational. How well are we doing making the Council available to the public? Councilmember Teitzel relayed he wrote a letter to the editor about ways Councilmembers can be contacted such as the Council website, personal cell phones, Town Halls, etc. He supported broaden the methods for input to ensure the Council was viewed as accessible. Council and staff comments included: • The public speaks when there is an issue they care about • General lack of civic engagement • Citizens rely on Councilmembers to do a good job • Availability of classes/seminars for engaging citizens • Councilmembers holding informal forums • Councilmembers attending existing meetings such as the Rotary to gather public input • No requirement for public comment at Council meetings • What is the purpose of committee meetings, flush out issue with staff or a town hall? Cannot do both. If it is for staff and Council to dialogue, citizens can attend and then have opportunity for public comment at next Council meeting • There is a difference between public comment and public dialogue. • Article in My Edmonds News about retreat said public invited but no opportunity for public comment • Retreat is a time for the Council to work • Ann Macfarlane (Jurassic Parliament) article about limiting public comment at Council meetings, establishing a total amount of time for comments like 20 minutes • Support not having public comment at committee meetings. It is a time for staff and council sort out issues Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 10 • Provide forum for public to feel they have been heard • Cities that allow public comment often have maximum amount of time. If a lot of people or controversial issue, Council can amend agenda to extend. • If public comment is allowed at committee meetings, don't allow a dialogue • Other cities that limit public comment to no more than three people on a topic • In the past, public comment was allowed at the end of committee meetings if time allowed 5. OTHER KEY TOPICS FOR THE COUNCIL: a. Public Works — What are the key projects for 2017 and what projects will remain unfinished due to lack of funding? Mr. Williams explained projects in the CIP that are not funded in the 2017 budgeted likely are not fully funded. He reviewed: • Key 2017 projects 0 76`h/212th from 220" to 206th 0 236th walkway/stormwater project complete once weather allows and before Edmonds School District begins their project mid -year 0 238th sidewalk o Normal utility replacements • Street Maintenance and Preservation Funding o Fund 111 - maintenance of everything in right-of-way including sidewalks, vegetation control, street lamps, curbs and gutters, pavement, striping, lights, signals, signage, etc. ■ Existing funding (2017) for street maintenance (Fund 111) Local license fee (TBD) $680,000 (dedicated) Fuel Tax $685,000 (dedicated) General Fund $412,000 Misc $7,000 Total $1,784,000 s Existing expense budge for Street Maintenance (Fund 111) Labor Cost $898,200 Supplies $350,000 Insurance $113,200 Electricity $270,200 Vehicles $178,700 Misc. $113,000 Total 1,923,300 Less Revenue (1,784,000) Deficit (139,300) o Fund 112 Streets (preservation) ■ Preservation (resurfacing) orop-ram Annual need in current dollars $1,300,000 - $1,500,000 2017 Funding Sources REET 2 $186,000 REET 1 $886,000 Carry Forward $284,000 Subtotal $1,356,000 Grant (PSRC) 84tfi $900,000 (periodic) Grand Total $2,256,000 • Utility funds have their own funding sources Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 11 • Buildings Council approved additional funding for building in 2017 o The need is great, roofs, HVAC, plumbing, electrical, interior/exterior. • Parks have own ongoing maintenance and capital preservation needs • Other potential revenue sources o Additional $20 annual license fee (councilmanic decision) $680,000 ■ TBD legislation also includes sales tax option and property tax option (requires vote) o Levy Lid Lift (requires vote) o Adoption of MPD, RFA, FDI (frees up revenue sources) Council and staff discussion included: • Fuel tax declining due to increased fuel efficiency and electric/hybrid cars • Passing a levy on an issue that is popular with public would free up revenue in the General Fund • Intrigued with increasing license fee, but recognize that is not a popular idea • Support static regular, predictable amount for street preservation • See need for street maintenance, concern with doubling TBD, could support smaller increase. Citizens impacted by increases due to Sound Transit 3, utility rate increase, etc. • Regressive tax argument • Earlier levies had a lot of issues, set up to fail • Support levy lid lift for focused purpose • Review of all capital facilities revealed large deficit. Budgeted $1.5 million in 2017 for streets and $400,000 to begin catching up with building needs. City is running out of years to allocate $1-1.5 million to streets. Additional $20 license fee reduces General Fund contribution to street preservation • License fee generates revenue without the need for a campaign • Concern with levy for capital preservation; in public's perception City already taking care of roads • Balance between regressive nature of fee/tax and nexus to impact. Property tax may be less regressive but no nexus • State is considering alternate ways to pay for road maintenance instead of gas tax • Council's ability to increase the license fee less than $20. Conclusion: Staff make recommendation to Parks, Planning & Public Works Committee and forward to Council b. Parks — How are we progressing on the PROS Plan and what projects need attention and funding? Parks & Recreation Director Carrie Hite distributed, 1) Parks, Recreation and Open Space Plan Seven Key Goals (adopted February 2014 following robust public process) and accomplishments and/or in process and future projects that will need funding, and 2) Parks, Recreation and Cultural Services 2017 Work Plan. She highlighted major Park projects for 2017: • Meadowdale playfields o Partnering with City of Lynnwood and Edmonds School District o Go to bid late March, award of bid in late April/early May o Development Agreement and Operational Agreement will come to Council prior to bid • Waterfront Redevelopment/Ebbtide Walkway o RFQ for design services is out o Currently at schematic level design o Pursuing two grants, in a good position get $1 million o Will bring award of bid to Council to reach 90% design and environmental permitting • Veterans Plaza o Notice to proceed last week Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 12 o Goal is to complete by Memorial Day o Contractor who won bid is currently working on the Frances Anderson Center bandshell Fishing pier o Complete in 2017 Ms. Hite reviewed smaller 2017 Park projects • Bandshell - additional issues have arisen o Coming to Council on February 7 for additional budget authority • Yost Spa replacement - award of bid by September • Civic Center o Come back to Council for adoption in February o Park naming process and demo stadium in first half of year of year, timing of demo depends on construction of storage shed in City Park. o Begin design development of Civic Field in 2017, funds available in REET 1 • Outdoor fitness zones - dependent on grant pending from Verdant (award in June) • Economic Impact Study o RFQ closed last week Seven submittals ■ Award of bid to Council next month • Fish hatchery o Trout Unlimited operators are retiring o Staff studying pros and cons of fish hatcheries o Sound Salmon Stewards interested in taking over operations • Community garden - likely locate at Esperance Park Ms. Hite reviewed Park funding: • First $750,000 of REET programmed for parks capital o $200,0004250,000 of that is ongoing capital needs in existing parks o Remainder is programmed as match for grants for larger projects. Examples of funds leveraged via match - Spray pad: $800,000 - Civic Field acquisition: $1.5 million - Interurban Trail - Woodway Fields - Hazel Miller Plaza - Fishing Pier: $1.8 million - Marsh restoration Ms. Hite highlighted: • Future projects that will require funding: o Civic Park development: $8-10 million o Waterfront Redevelopment, Ebbtide Walkway: $2-3 million o Edmonds Marsh Daylighting, Marina beach Development: $8-10 million o Athletic Field Development: Meadowdale, Woodway: $1-2 million • Funding for Parks Capital Needs o REET o Park Impact Fees o Grants: usually matching and need available local funds to compete o Exploration of Metropolitan Parks District, bonding capacity or levy for development, Parks Foundation Discussion followed regarding: Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 13 • Seeking funding from WRIA 8 for Edmonds Marsh Daylighting, they gave Bothell $5 million for park acquisition • Status of the trail around marsh, likely will be part of marsh restoration project • Preliminary discussions with WSDOT about a collaborative project to bring daylighted channel, walkways, etc. through lower yard • When daylighting is done, any possibility have State Department of Fisheries taking over hatchery? o Fish and Wildlife getting out of hatchery business. State funds are used to create an environment for Chinook Salmon; the hatchery raises Coho Salmon, the two do not co -exist. o Tulalip Tribes are opposed to hatcheries due to limited survivability o Determine if way to continue hatchery for educational purposes and no cost to City to operate • No longer considering condemnation for the Ebbtide Walkway C. Finance - What are the city's operational challenges financially? What does the next three to five years look like and what solutions might we consider to meet any challenges? Mr. James commented the economy is currently in an upswing but downswings do occur. He reviewed: Reserve analysis Table as of 12/31/16 Fund Description Fund Policy Fund Comments In Balance Stipulated Balance Compliance Reserve Less with Reserve Reserve Policy? General $9,684,897 $0 $9,684,897 N/A Risk Mgmt Reserve $968,549 $800,899 $167,650 Reserve balance must equal or Yes exceed 2% or annual General Fund reserves General Fund $5,387,137 $6,407,190 ($1,020,053) Reserve balance must equal or 8% - Yes Contingency Reserve exceed a minimum of 8% of annual General Fund revenues 16% - No with a target of 16% $16.040,583 $7,208,089 $8,832,494 He displayed and reviewed the following graphs: • Reserve analysis • Economic cycles 1996 - 2016 • Reserve analysis outlook He described future considerations and potential: • Challenge o Taking care of what we have - Potential solution 1) Need to understand future liabilities of taking care of what we have ➢ Recent facility condition assessment identified maintenance needs ➢ Pavement condition assessment report funded in 2017 budget 2) Create a process to prioritize funds Discussion followed regarding the Long Range Finance Group discussing how to prioritize, plans that are done in silos, potential solutions such as budgeting by priorities, need for ongoing revenue for maintenance, funding sources such as the vehicle license fee and levy lid lift, and establishing a policy for the use of BEET. d. Public Safety - What are our key public safety issues? Chief Compaan reported on 2017 plans: • Hiring part-time parking enforcement, developing MOU with Police Guild on salary/benefits Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 14 • Interviewing two animal enforcement positions Monday • With funding in 2017 budget for SRO, recruiting for additional officer. Following up with Edmonds School District regarding their funding • Hiring additional police staff assistant • Pedestrian safety funding • Street crimes unit has been an overwhelming success, very busy, 2 officers and a sergeant. • Expect Police Foundation to fund a police dog which will add a second K-9 • New World has had a few glitches but overall is an asset to public safety. Dispatch and records management are particularly good • Dispatch center consolidation — more information in the next few months • Police Department reaccreditation later this year o Contract negotiations underway. Hope to get commissioned officer contract resolved shortly and then begin on non -commission staff contract ■ Parking tickets: Watching Mukilteo's acquisition of automated ticketing hardware/software system. More on that in coming months. Would allow Police Department to be more efficient • Snohomish County 800 MHz system utilized by police/fire needs to be replaced in 2020 o Estimate for Snohomish County is $73 million o Considering funding options such as an increase in real estate tax on ballot which passed in King County o SERS will be informing councils, will need strong support to get that passed, no other options • Reconfirmed with Lynnwood they are hiring 1 FTE social worker under the Police Department and Community Services. Edmonds is interested in partnering with them. Discussion followed regarding opiate addiction trends in the U.S. that impacts criminal activity, jails, homelessness, etc. followed closely by mental illness, lack of services and lack interest of person afflicted in accepting services; assistance a social worker will provide, and what officers do when encounter panhandlers (not a crime, get involved if there is a concern, aggression, interfering with pedestrians or traffic or threatening behavior), and treatment centers versus jails. e. Housing and Homelessness — How can improved housing options in Edmonds to impact our homeless population? How can we partner with our neighboring jurisdictions to help the homeless? Councilmember Tibbott relayed a citizen group, Edmonds Housing Task Force, is interested in lobbying in Olympia and seeking resources in Snohomish County. He and Ms. Hope have suggested they can get more bang for their buck by seeking land not in Edmonds but in South Snohomish County where more housing could be constructed closer to transit and employment. One way to help with affordable housing is via zoning such as in Westgate and creating opportunity for it in other places. More important than what the City does is what they eliminate such as barriers to housing, additional costs and prohibitive regulations. There is a vacant parcel in Edmonds next to a church; the church is looking at how the parcel could be donated and developed under certain parameters. Discussion followed regarding increased numbers at the Senior Center's cold weather shelter this year, Rick Steves' donation of Trinity Place transitional housing complex to the YMCA, issues that will be addressed in the City's housing strategy, Affordable Housing Alliance (AHA) efforts, A Regional Coalition for Housing (ARCH) in King County, the State's formula to allocate funding that favors King County, tiny homes as an affordable housing option and ensuring the City's code are amenable to that, simplifying the City's regulations to make it easier to establish attached/detached accessory dwelling units, and opportunities for affordable housing on Highway 99. Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 15 E Regional approaches — How can we partner with other governmental entities to resolve regional issues like transportation, housing, public safety, community services, etc.? How can we maximize re ig•onalag rtici,pation? Council and staff comments included: • The regional SWAT team now included Redmond and Kirkland. • Consideration is being given to consolidating the South Snohomish County Narcotic Unit with a larger group in North Snohomish County led primarily by Everett and Snohomish County. • The City has done a fabulous job enlarging its image; several staff members are regional influencers. Edmonds is on the radar screen which raises the level of recognition and also helps with grants. Important for Edmonds to remain an influence regionally. • If Edmonds can be a city that provides leadership, it will get more back. g. Legal — 9th Circuit Court "Culver Decision" on fish passages Mr. Taraday reported this decision came out in summer 2016. The State of Washington was sued by the Federal government asserting claims on behalf of several Tribes under their treaty rights. The treaty rights give the Tribes rights to continued supply of salmon and the culverts that the State has under various highways block access to salmon habitat. The Federal government sued and obtained an injunction requiring the State to remove and replace those culverts over the next 17 years. That was appealed to the 9th Circuit Court where the decision was upheld. This was a landmark case because while it was always recognized the treaties guaranteed the Tribes access to fishing rights, until this case that had not been extrapolated into fish habitat. In this decision, the treaty rights have been interpreted to also protect fish habitat. The court distinguished between high and low priority culverts. High priority culverts block a significant amount of fish habitat and low priority culverts do not block a significant amount of fish habitat. The court said low priority habitats can be replaced when their useful life expires or during road construction. Mr. Taraday explained the case does not directly apply to Edmonds but some have hypothesized that the same principles could apply to cities and private parties with infrastructure that blocks fish habitats. The case does not address railroads. When the State of Washington was sued, it bought a counter claim against the United States, stating if the State had to replace its culverts, the Federal culverts had to be replaced; the court ruled against that saying the United States has sovereign immunity. The culverts on SRI 04 are owned by the State; he was unsure if they were considered high or low priority. The most applicable in Edmonds would be the tide gate access to Edmonds Marsh; there are already plans to remove it. 6. CONCLUSIONS AND NEXT STEPS Council President Mesaros thanked everyone for investing time and energy into retreat. He summarized: • He will summarize the retreat at the February 7 or 14 Council meeting, establish a method for tracking and provide a periodic progress report • 40,000 people count on the directors and electeds to make good choices. With all information we have, are we making the best choices? It was his sense everyone was working for a common purpose. • His goal during the retreat was to set the course for 2017 with the resources that are available. • He invited Councilmembers to commit to doing the best for the City Council and staff comments included: • Very collaborative retreat. Thanked Council President Mesaros and the Council. • Feels like we are a team • Thanked Council President Mesaros for his leadership and creating that environment. Good to get off the dais and talk together. • Thanked Council President Mesaros for his facilitation skills and getting through so much. Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 16 • Need to brief and follow-up with Mr. Doherty and Councilmembers Fraley-Monillas and Johnson who were not present • Great to get together in casual setting. Impressed with everyone, look forward to working together. • Great job facilitating • A lot of great things going on in community. Helps to stand back and talk about what still need to do, helps to see what we've done. • Respect trust collaboration and flexibility. Process important but need flexibility • The tradition has been one retreat/year. Suggest be open to having another one if a topic arises that is particularly difficult. • Retreat format works well. Provides for more dialogue, understanding, questions • Liked the reports from departments, good to see the bigger picture. The retreat was adjourned at 11:54 p.m. ./j, C�n� **�* DAVID O. E RLING, MAYOR ..rte A'.�. Edmonds City Council Retreat Draft Minutes January 20-21, 2017 Page 17 ; A : I