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20180306 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES March 6, 2018 ELECTED OFFICIALS PRESENT Dave Earling, Mayor Michael Nelson, Council President Kristiana Johnson, Councilmember* *participated by phone Thomas Mesaros, Councilmember Adrienne Fraley-Monillas, Councilmember Diane Buckshnis, Councilmember Dave Teitzel, Councilmember Neil Tibbott, Councilmember ALSO PRESENT Noal Leonetti, Student Representative CALL TO ORDER/FLAG SALUTE STAFF PRESENT Phil Williams, Public Works Director Scott James, Finance Director Frances Chapin, Arts & Culture Program Mgr. Rob English, City Engineer Jeff Taraday, City Attorney Scott Passey, City Clerk Jerrie Bevington, Camera Operator Jeannie Dines, Recorder The Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Earling in the Council Chambers, 250 5" Avenue North, Edmonds. The meeting was opened with the flag salute. 2. ROLL CALL City Clerk Scott Passey called the roll. All elected officials were present; Councilmember Johnson participated by phone. 3. APPROVAL OF AGENDA COUNCILMEMBER TIBBOTT MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. 4. AUDIENCE COMMENTS Joe Scordino, Edmonds, expressed support for establishing a fund for marsh restoration and preservation where the public donate to restore the Edmonds Marsh. As a daily visitor to the marsh, he encounters many people asking how they can help make the marsh a pristine place. The fund provides an opportunity for people to donate as well as helps the City by providing matching funds when applying for grant funds for the Willow Creek daylighting project. Scott Marshall, Edmonds, expressed support for the creation of a municipal broadband in Edmonds. While the State has been creating net neutrality in response to the repeal at the federal level and while he appreciated 21st District Representatives Strom Peterson and Lillian Ortiz -Self for sponsoring HB 2282, the problem remains that net neutrality was repealed at the federal level with internet service spending millions to lobby for its repeal. As long as they consider it profitable, they will likely do the same at the State level. Edmonds City Council Approved Minutes March 6, 2018 Page 1 The only way to solve the problem in the long term is for Edmonds to offer its own broadband that is accountable to the people instead of investors half a world away. Rich Senderoff, Edmonds, expressed support for the ordinance establishing a fund for marsh restoration and preservation. He recalled during deliberations on the Shoreline Master Plan when a Council decision seemed imminent, in only two weeks a small group of people obtained over 400 signatures in support of the most protective buffer and setback requirements in accordance with the 2016 Department of Ecology Wetland Values for Critical Areas Update, clearly indicating a great deal of interest in the community and the region. The most important thing that can be done to restore the marsh is to complete the Willow Creek daylighting project as soon as possible as it will increase the rate and volume of tidal exchange that will enhance removal of pollutants and reduce buildup of sediment. With increased tidal exchange, a new saltwater/freshwater equilibrium will be established that will naturally address the overgrowth of freshwater vegetation and enhance the habitat. The return of a fully functioning marsh that acts like sponge will also address stormwater issues in the area. The fund will allow citizens, non -governmental organizations and even taxing districts such as the Port to go on record supporting the project. After the Willow Creek daylighting project is completed and several seasons pass, there will be a much better idea of the type and scale of development that could occur at Harbor Square that will not impact marsh. He urged the Council to unanimously approve the ordinance. Nancy Johnson, Edmonds, expressed concern with plastic waste as much of it is not recycled and ends up in the ocean affecting the health of marine life and seabirds. A few years ago Seattle passed an ordinance banned plastic straws and utensils but it was not implemented as substitute products were hard to find and expensive. Seattle plans to begin enforcing the ordinance in July as compostable straws and utensils are now available although they are still more expensive than plastic. She suggested the City Council and staff work with business stakeholder to plan a transition to compostable or other alternative products. Edmonds has taken a leadership role on climate and pollution issues and this could be one of the next steps. Margie Fields, Edmonds, expressed support for a ban on plastic straws and lids in Edmonds and other communities, commenting that would be in keeping with the City's leadership role in environmental issues. She also supported the marsh restoration fund, recalling in the past there were people who wanted to donate to marsh restoration but there was no way to accept the funds and certainly not a way to make a tax- deductible donation. She urged the Council to support the ordinance establishing a fund for marsh restoration and preservation. 5. APPROVAL OF CONSENT AGENDA ITEMS COUNCILMEMBER MESAROS MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: 1. APPROVAL OF COUNCIL SPECIAL MEETING MINUTES OF FEBRUARY 27, 2018 2. APPROVAL OF COUNCIL MEETING MINUTES OF FEBRUARY 27, 2018 3. APPROVAL OF CLAIM CHECKS 4. EMPLOYEE AGREEMENT 5. PROGRAM ASSISTANT -PARKS, RECREATION & CULTURAL SERVICES (RECLASSIFICATION) 6. FINAL ACCEPTANCE OF DOWNTOWN CXT PREFABRICATED RESTROOM PROJECT Edmonds City Council Approved Minutes March 6, 2018 Page 2 7. AUTHORIZATION TO PURCHASE - 2018 ENVIROSIGHT VIDEO INSPECTION TRUCK 8. AUTHORIZATION FOR MAYOR TO SIGN A SUPPLEMENTAL AGREEMENT WITH MURRAYSMITH FOR THE 2019 SEWER REPLACEMENT PROJECT 9. REPORT ON BIDS FOR THE 2018 WATERMAIN REPLACEMENT PROJECT 10. REPORT ON BIDS FOR THE FIVE CORNERS RESERVOIR RE -COATING PROJECT 11. REPORT ON BIDS FOR THE 238TH WALKWAY (EDMONDS WAY TO HWY 99) 12. AUTHORIZATION FOR MAYOR TO SIGN A PROFESSIONAL SERVICES AGREEMENT WITH THE BLUELINE GROUP FOR CAPITAL PROJECTS CONSTRUCTION MANAGEMENT, ENGINEERING & INSPECTION SERVICES 6. PRESENTATIONS 1. SUMMARY OF TRANSPORTATION CONSTRUCTION COSTS (2012-2017) Public Works Director Williams relayed this summary was the result of a request from the Parks, Planning & Public Works Committee regarding how transportation projects performed financially over the last several years due to a possible public perception regarding cost overruns. After reviewing the summary, the PPP Committee requested staff present it to the City Council. He agreed, appreciating the opportunity to brag about City Engineer Rob English and his staff who deserve the credit for the projects' performance. He reviewed the following summary: Cost Summate on Transportation Con-structionPro jects (2012 - 2017) No. Project Title Award Year Award Amount Management Reserve Total Budget Actual Cost Percent Over Award Percent Over Total Budget 1 SR-99 Lighting Project Ph 1&2 7/17/20E $ 277,208 $ 27,800 $ 305,008 $ 274,532 -1 0% -10.0°f 2 Main St. (5th - 6th) 8/28/201 $ 1,092,553 $ 109,300 $ 1,201,853 $ 1,106,118 1.2% -8.07/ 3 5th Ave Overlay 8/6/201- $ 732,732 $ 73,273 $ 806,005 $ 739,050 0.9°/ -8.3° 4 Signal Cabinet Upgrades 1/9/201 $ 201,598 $ 20,160 $ 221,758 $ 245,566 21.8% 10.77/ 5 1 Five Comers Roundabout 4/15/2011 $ 2,934,597 $ 293,500 $ 3,228,097 $ 3,002,112 2.3% -7.0% 6 3rd Ave ADA Ramps 4/4/20141 $ 78,881 $ $ 78,881 $ 67,756 -14,1% -14.17/1 7 15th St, Walkway 9/16/20141 $ 233,753 $ 11,700 $ 245,453 $ 200,868 -14.1% -18 20/ 8 220th St Overlay 8/4/2015 $ 668,866 $ 100,330 $ 769,195 $ 583,529 -12.8°/ -24.10/ 9 238th St. Walkway & Storm Impr 8/4/2015 $ 1,181,347 $ 118,135 $ 1.299,482 $ 1,063,428 -10,0% 18.2°/ 10 228th St. SW Corridor Impr* 5/5/2015 $ 5,205,040 1 $ 498,700 $ 5,703,740 $ 5,202,000 -0.1°/ -8.8 ] 1 236th St. Walkway 9/27/2016 $ 572,925 1 $ 57,295_1 $ 630,2201 $ 547,434 -4.4°/ 13.1 °/ Totals= $ 13,179,500 $ 14,489,693 $ 13,032,392 -1.1% -10.1% *Note -Actual Cost is an Estimate Mr. Williams reviewed: Summary 0 11 Transportation Projects (all of them that we have data for) over the last 5 years ■ 7 out of 11 projects were completed under the contract award amount o Percentage of actual costs at completion over awarded contract ranged from -14.1 % to 21.8% ■ Only one project out of 11 was over more than 2.3% over the contract amount — Project 4, signal cabinet did not fit the location; cost to modify the cabinet was prohibitive so cabinet retained for use on another project and new cabinet was ordered o Weighted average was -1.1% under the awarded contract amount o Weighted average of management reserve spent was -10.1% under the 10% awarded Edmonds City Council Approved Minutes March 6, 2018 Page 3 Literature Values o Comparative Analysis of Total Project Costs with verses without a Construction Manager Research Report to the CMAA Research and Development Committee From the Departments of Civil Engineering, University of Southern California and California State University, Long Beach Contacts: John A. Kuprenas (kuprenas@usc.edu); Elhami B. Nasr April 16, 2006 65 projects - +7.5% o Magnitude of Construction Cost and Schedule Overruns in Public Work Projects o Prainen P. Shrestha,' Leslie A. Burns,' and David R. Shields' o 'Department of Civil & Environmental Engineering & Construction, Howard R. Hughes College of Engineering, University of Nevada, Las Vegas, NV 89154, USA 2Clark County Public Works Department, Las Vegas, NV 89154, USA o Received 3 April 2013; Accepted 19 October 2013 363 projects—1991-2008 +12.1% o Vidalis and F. T. Najafi, "Cost and time overruns in highway construction," in Proceedings of the 4th Transportation Specification. Conference of the Canadian Society for Civil Engineering, pp. 2799-2808, Montreal, Quebec, Canada, June 2002. View at Scopus +10.5% o J. Odeck, "Cost overruns in road construction —what are their sizes and determinants?" Transport Policy, vol. 11, no. 1, pp. 43-53, 2004. View at Publisher • View at Google Scholar • View at Scopus +7.9% Mr. Williams relayed the PPP Committee requested a similar analysis of utility projects; he anticipated the results would also be positive. Councilmember Tibbott recalled the PPP Committee also discussed occasions when the bids received were significantly higher than the estimate and staff agreed to wait and rebid the project and the bids were lower. He concluded the summary illustrates good management as well as good value for projects. He commended staff for determining the best time to bid. Councilmember Teitzel commented this summary is good news, agreeing there is a perception that City construction projects take too long and cost more than budget. He thanked Mr. English for his efforts. Councilmember Teitzel inquired about the trackside warning system. Mr. Williams answered progress is being made, the permit from BNSF has been finalized after long process. BNSF specified the routes for conduit, staff is ensuring those alignments are workable and draft drawings will be modified to reflect those alignments. The first steps in construction will be the contractor, QZT, subcontracting with a horizontal drilling company to install the conduits, one of which will go under the railroad at the specified depth. That work will be done at Main and Railroad Avenues amid entry to the ferry. The last time a stormwater project crossed the railroad tracks, a great deal of stacked timbers were encountered. The soil in that area is not great and in the shake mill days, wood was laid down to prevent sinking into the mud. Potholing will be done in the next few days to determine soil conditions. Mr. Williams described the route of the conduit and installation of two poles, one on the north and one on the south on opposite sides of track so north and southbound trains can clearly see it at least 'A mile before reaching the intersections. The system will inform the engineer via a green signal if the system is working properly and the no horn is needed; a red signal will be displayed if the system is not working properly and the engineer will need to blow the horn. He anticipated the project would start fairly soon. Councilmember Mesaros inquired about a projected end date for installation. Mr. English answered the goal is 90-120 days. Edmonds City Council Approved Minutes March 6, 2018 Page 4 Councilmember Mesaros agreed this was a good report. He recognized there are a number of people who think the government does not know how to do things efficiently; this report shows the City does and has good people, including Mr. Williams and Mr. English, managing the public's money. 2. ARTS COMMISSION ANNUAL REPORT FOR 2017 Arts and Culture Manager Francis Chapin recognized commissioners in the audience and introduced Arts Commission Chair Lesly Kaplan who is also the chair of the Writers Conference Steering Committee. Ms. Kaplan expressed thanks for the incredible leadership Ms. Chapin provides to the Edmonds Arts Commission (EAC) and the community. She explained the EAC has seven volunteer members who work with the Cultural Service Division on projects, volunteer hundreds of hours per year and work in partnership with many arts organizations and funding partners to make their programs possible. 2017 was the ECA's 42" d year, established by the City Council to recognize the important role of visual, performing and literary arts in enhancing the quality of life in the community. She reviewed: • Mission o Ensure that the arts are an integral part of the: • Central identity, • Quality of life, and • Economic vitality of Edmonds. o Cultural Planning and Core Programs contribute to all of these areas. • Cultural Planning & Implementation 2014-2017 o Key goal in 2014 Plan to strengthen communications and increase cultural awareness in Edmonds. o Strategy — undertake periodic assessment of cultural tourism and economic impact of arts and culture in Edmonds o Cultural Planning... • Literary — Core programs 0 32 years of Write on the Sound writers' conference • Sold out 275 attendees Generated 90 overnight stays • Multiple sponsors 0 20 years of Best Book I ever Read Poster contest for third graders • Performing Arts — Core Programs o Concerts in the Parks Series a 19 free summer concerts o Music at the Library ■ 7 free music presentations in the Plaza Room, Fall - Spring • Visual Arts — Core programs o Rotating exhibits in the Library and the Frances Anderson Center o Youth Display Case for local high school students Art in the Public Realm o City Art Collection — acquisition & maintenance • Over 150 original artworks located throughout City buildings • Over 40 permanently sited installations • 22 small sculptural artworks on new flower basket poles o On the Fence temporary art installations at three locations in downtown ■ Shadow of letters on Frances Anderson Center fence say "Live Large by Loving Life" o Partnered to create new informational panels for public display o Dayton Street Plaza gathering space with art elements, dedicated April 2017 • Economic Vitality Edmonds City Council Approved Minutes March 6, 2018 Page 5 o Cultural Tourism promotion through Write on the Sound advertising and general promotion of arts and culture o Awarded $18,500 from Lodging Tax funds to community arts and culture organizations for advertising events to attract visitors o Completed Economic Impact Study Strengthen Communication/Cultural Awareness (Community Cultural Plan Goal) o EAC coordinated implementation of the economic impact of arts and culture in Edmonds study. o Economic Impact of Arts & Culture Study completed during 2017 by Berk Consulting and AdvisArts with assistance from City staff and dozens of community volunteers who helped with surveys of visitors and residents. o Over 1300 visitor and resident surveys completed. o Twenty-nine organizational surveys analyzed. o Directory compiled of almost 100 arts and culture organizations and businesses in Edmonds. Ms. Kaplan thanked the City Council and the Edmonds community for their continued support of arts and culture, a key component of the economic vitality and identity of Edmonds. Councilmember Mesaros commented Edmonds is very diverse as illustrated by the four quality presentations on tonight's agenda. He recognized the important role of staff as well as the important role commissioners play. He referred to 2017 EAC projects and programs in the written report that includes percentages for revenue and expenses and inquired about the total budget amount those percentages represent. Ms. Chapin answered the total budget varies from year to year and is based on different categories; EAC funds are represented in special funds. For example, there was a total of $23,000 from lodging tax in 2017; $18,500 of that was allocated to other organization in tourism promotion grants. That is added to the total budget for other programs in the Municipal Art Fund in 1) public art (acquisition and maintenance of public art), and 2) General Municipal Art Fund. Those two totaled approximately $72,000 in 2017. The General Fund allocates $15,000/year to the EAC and 2 staff positions in the Cultural Services Division. Councilmember Mesaros suggested Ms. Chapin email the Council with those totals. He referred to the percentages such as 46% of revenue is earned income and asked the total revenue amount. Ms. Chapin advised earned revenue is almost entirely from WOS; it generated a gross of $50,000 in 2017. The $15,000 in the General Fund is not enough to do all the EAC programing; the WOS has netted approximately $15,00- $18,00 over the last couple years. Those funds are used for other EAC programs. Councilmember Buckshnis inquired about the 1% for Art. Ms. Chapin referred to the Municipal Arts Fund that has two sources. In 2017, a total of $3,000 was received from 1% for Art funds, largely due to the number of grant funded projects which are not eligible for 1% for Art. She recalled during the budget process, the use of the ending cash balance in Fund 117 for programs was proposed and in the Lodging Tax funds for the Economic Impact Study. There is not an adequate amount of funds from 1% for Art to do any significant projects. She reiterated the total revenue varies tremendous year to year. Councilmember Buckshnis expressed her appreciation to the volunteers, noting some have volunteered for decades. Councilmember Buckshnis commented when visiting Issaquah and Redmond with WRIA 8, she has seen wraps on signal control boxes to camouflage them. She suggested that could be done at Five Corners and Westgate. Ms. Chapin agreed that is done in many communities. She and Mr. Williams have discussed that and tried unsuccessfully to get Key Bank to fund one in Westgate. Councilmember Tibbott echoed Councilmember Buckshnis' gratitude for the volunteers who make the EAC's programs work, noting it not only enhances the quality of programs but also makes Edmonds welcoming and hospitable. He recalled interacting with volunteers at the Arts Festival in the past. He asked Edmonds City Council Approved Minutes March 6, 2018 Page 6 if a dollar value could be assigned to the hours the volunteers contribute. Ms. Chapin agreed with the tremendous amount of volunteerism in the Edmonds community especial in the arts. The City has small a budget and a small arts commission but does a lot with it due to the numerous partners and partner organizations who also mobilize volunteers. She noted Edmonds Center for the Arts (ECA) is a shining example volunteerism; she recalled the ECA calculated the value of volunteer hours. She summarized volunteers are key to the success of many arts and cultural programs in the Edmonds community. Council President Nelson thanked Ms. Kaplan for explaining the On the Fence artwork at Frances Anderson Center, commenting he has been unable to decipher it. He asked if there were any public art projects planned for 2018 or 2019. Ms. Chapin answered the On the Fence program will continue, two were recently installed at Frances Anderson Center field and at Artworks at 2°a and Dayton. An Edmonds-Woodway High School IB student is doing an On the Fence project for her senior project. There will also be new sculptures on the newly installed flower basket poles including a whimsical one outside the library. 3. CITY ATTORNEY ANNUAL REPORT City Attorney Jeff Taraday explained it is important to annually review the attorney -client relationship, noting most of it is governed by the Rules of Professional Conduct (RPC) that all attorneys in the State of Washington are governed by: • Big Picture o City has relationships with four law firms: ■ Lighthouse • WCIA • Bond Counsel • Zachor & Thomas • Who is the client o RPC 1.13(a) A lawyer employed or retained by an organization represents the organization acting through its duly authorized constituents The attorney -client relationship AttorneygOrganizational clientG*Duly Authorized Constituents Duty Authorized Constituents o City Council • Individual Councilmembers • Boards & Commissions o Mayor • Directors • Staff o Judge What about your constituents, the citizens? o Lighthouse<*Duty Authorized Constituents<*Citizens Same concept applies to the City's relationship with the other three law firms Oversight role? o Duty to investigate? ■ RPC 2.1, comment 5: A lawyer ordinarily has no duty to initiate investigation of a client's affairs or to give advice that the client has indicated is unwanted, but a lawyer may initiate advice to a client when doing so appears to be in the client's interest o Request to investigate ■ The RPCs do contemplate that lawyers will be asked on occasion to investigate alleged violation of law o What if lawyer knows of a violation? Edmonds City Council Approved Minutes March 6, 2018 Page 7 • RPC 1.13(b): If a lawyer for an organization knows that an officer, employee or other person associated with the organization is engaged in action, intends to act or refuses to act in a matter ... that is a violation of a legal obligation to the organization, or a violation of law that reasonably might be imputed to the organization, and that is likely to result in substantial injury to the organization, then the lawyer shall proceed as is reasonably necessary in the best interest of the organization.... o Reporting Up ■ RPC 1.13(b):... Unless the lawyer reasonably believes that it is not necessary in the best interest of the organization to do so, the lawyer shall refer the matter to higher authority in the organization, including, if warranted by the circumstances, to the highest authority that can act on behalf of the organization as determined by applicable law. o Highest Authority ■ RPC 1.13 [comment 5]: The organization's highest authority to whom a matter may be referred ordinarily will be the board of directors or similar governing body. o What if "reporting up" doesn't work? • RPC 1.13(c) Except as provided in paragraph (d), if (1) despite the lawyer's efforts ... the highest authority ... insists upon or fails to address in a timely and appropriate manner an action, or a refusal to act, that is clearly a violation of law, and (2) the lawyer reasonably believes that the violation is reasonably certain to result in substantial injury to the organization. then the lawyer may reveal information relating to the representation whether or not Rule 1.6 permits such disclosure, but only if and to the extent the lawyer reasonably believes necessary to prevent substantial injury to the organization. • Lawyer as a decision -maker? o RPC 1.13, comment 3: When constituents of the organization make decisions for it, the decisions ordinarily must be accepted by the lawyer even if their utility or prudence is doubtful. Decisions concerning policy and operations, including ones entailing serious risk, are not as such in the lawyer's province. • Lawyer not decision -maker, but... o ... when the lawyer knows that the organization is likely to be substantially injured by action of an officer or other constituent that violates a legal obligation to the organization or is in violation of law that might be imputed to the organization, the lawyer must proceed as is reasonably necessary in the best interest of the organization. • Special rules for city attorney? o RPC 1.13, comment 9: ... in a matter involving the conduct of government officials, a government lawyer may have authority under applicable law to question such conduct more extensively than that of a lawyer for a private organization in similar circumstances. Thus, when the client is a governmental organization, a different balance may be appropriate between maintaining confidentiality and assuring that the wrongful act is prevented or rectified, for public business is involved. • So you aren't the client... are your communications still confidential? o RPC 1.13, comment 2: When one of the constituents of an organizational client communicates with the organization's lawyer in that person's organizational capacity, the communication is protected by Rule 1.6. ■ ... This does not mean, however, that constituents of an organizational client are the clients of the lawyer. The lawyer may not disclose to such constituents information relating to the representation except for disclosures explicitly or impliedly authorized by the organizational client in order to carry out the representation or as otherwise permitted by Rule 1.6. Edmonds City Council Approved Minutes March 6, 2018 Page 8 - Example: A Councilmember contacts the city attorney, city attorney assumes the conversation is confidential and it would be a violation of RPC to share that conversation with another Councilmember unless impliedly or expressly authorized to do so. • Advisor o In representing a client, a lawyer shall exercise independent professional judgment and render candid advice. In rendering advice, a lawyer may refer not only to law but to other considerations such as moral, economic, social and political factors, that may be relevant to the client's situation. Mr. Taraday described the City Attorney Team: Jeff Taraday o City Council meetings o Elected official advice o Land use o Litigation o Coordination/special projects o Office hours twice week • Sharon Cates o Labor and Employment o Contracts and ILAs o Bidding and Procurement o Disability Board o Office hours once a week • Patricia Taraday o Public Records Act o Code enforcement o Nuisance abatement o Office hours once a week • Rosa Fruehlig-Watson o Council meeting back up o Labor and employment support o PRA Support • Beth Ford o Research o Writing Legal memo o Briefing o Ordinance drafting o Other litigation work • Desiree Phair o Research o Writing legal memos o Briefing o Other litigation work • Suzanne Lieberman o Research o Writing legal memos o Briefing o Other litigation work Mr. Taraday reviewed City Attorney Team Stats: Edmonds City Council Approved Minutes March 6, 2018 Page 9 2,837 hours worked • $532,147 in legal fees • Flat monthly fee regardless of hours worked • $188 average effective hourly rate • 2017 top ten matters (by hours worked(parenthesis = last year's ranking): Ranking Matter Hours 10 Public Works 8) 106 9. Mayor's Office (4) 124 8. Shi en R) 150 7. Police (3) 152 6. City Clerk (7) 199 5. Development Services (5) 260 4. Blomenkamp (2) 264 3. Ebb Tide (NR) 280 2. Human Resource (6) 401 1. City Council (1) (includes City Council meetings) 513 • Top Liti ,ation matters by hours worked Ranking Matter Hours 5. Husby (Abatement) 40 4. Schmidt (LUPA) 68 3. Shi en (IC/Trespass 150 2. Blomenkam (LUPA) 264 1. Ebb Tide (Dec J) 280 Litigation Completed by Lighthouse in 2017 and Result: o Husby (abatement) • City abated nuisance by fencing, boarding, bio-cleaning and dumping of junk and debris. Upon sale, the estate paid City the full cost of abatement, portion of City Attorney's fees, $1,700.00 in City staff time and approximately $500.00 in City costs associated with filing the lawsuit for total of $31,460.92. o Schmidt (LUPA) • Case dismissed on mootness grounds. o Blomenkamp 2015 (LUPA) ■ Blomenkamp's appeal dismissed; petition for review pending. o Blomenkamp 2017 (LUPA and tort) • LUPA dismissed; tort claims (WCIA) still pending. Pending Litigation with Lighthouse o Joplin v. Edmonds • GMHB appeal of Hwy 99 zoning. Dispositive motion being prepared. o Shippen v. Edmonds • Landslide case. Parties engaged in discovery. o Ebb Tide ■ Declaratory judgment re terms of easement. Parties engaged in discovery. WCIA Coverage o Claims arising from alleged: • Employment related action, e.g. retaliation and harassment • Police excessive force • Land use damage • Auto liability • Defective street or sidewalk Edmonds City Council Approved Minutes March 6, 2018 Page 10 • Sewer obstruction • Premises liability • Other negligence Councilmember Buckshnis commented Lighthouse's contract is up for renewal this year She recalled the City spent 4 months in 2014 working on it. She requested Mr. Taraday provide her a summary of hours, similar to the information he provided her in the 2014. Councilmember Teitzel asked about example of attorney client privilege when talking with a Councilmember and asked how consent to divulge a conversation would be implied. Mr. Taraday answered if the Councilmember indicated they had already talked to another Councilmember or advice that was provided during a public meeting. 4. DECEMBER 2017 QUARTERLY FINANCIAL REPORT Finance Director Scott James provided an overview: • General Fund Revenues 2017 Compared to the Amended Budget o Revenues for the General Fund and its sub funds are running about 4% ahead of budget • General Fund Expenditures 2017 Compared to the Amended Budget o Actual general fund expenses are $1.7 million dollars under budget, or about 4.1% • Graph of General Fund Revenues comparing 2017, 2016 and budget o General Fund Revenues are tracking very close to budgeted numbers. • Graph of General Fund Expenditures comparing 2017, 2016 and budget o General Fund Expenditures are tracking very close to budgeted numbers. • Chart of Sales Taxes by Category, year ended December 31, 2017 o Retail automotive sales continue to provide our largest source of sales tax revenue, with sales taxes related to construction coming in second • Change in Sales Tax Revenue by Category December 2017 compared to December 2016 o Total sales tax revenue for 2017 is $489,991 dollars higher than for 2016. • Growth in Interest Income for the City, a Result of Increasing our Investments in the Federal Municipal Bond Market 0 2012: $ 57,334 0 2013: $ 74,830 0 2014: $163,214 0 2015: $335,926 0 2016: $423,816 0 2017: $653,690 • Graph of Real Estate Excise Tax (REET) Returns 0 2013: 1,791,475 0 2014: $1,879,861 0 2015: $2,699,178 0 2016: $2,589,551 0 2017: $2,983,643 ■ $394,092 or 14.6% higher than 2016 Summary: o After years of low inflation o Continued slow growth in the economy o Edmonds is in relatively good shape financially o We have reserves sufficient to weather a minor unexpected downturn in the economy, should that occur My Edmonds News article, "City of Edmonds Recognized for Financial Reporting" Edmonds City Council Approved Minutes March 6, 2018 Page 11 o CAFR Certificate of Achievement for Excellence in Financial Reporting o PAFR Award for Outstanding Achievement in Popular Annual Financial Reporting • Produced PAFR for the first time in 2017 Mr. James reviewed the PAFR: • 12-page report that provides a brief overview of the City's finances • Description of what a PAFR is • Introduces Councilmembers and some City staff • Reports key numbers for City • High level financial summary • Major 2016 City projects • List of some accounting terms Councilmember Teitzel commented he loves the PAFR, a Readers Digest version of the City's annual financials. He thanked Mr. James and Assistant Finance Director Dave Turley for preparing the reports. He referred to the YTD Expenses that illustrates a Building Maintenance Fund budget of $620,500 and expenditures of $345,162. He recognized the City as behind in building maintenance issues and asked why more was not spent in 2017 to maintain buildings. Mr. James relayed the City's facility maintenance manager indicated they ran out of time; he expected to fully utilize the budget in 2018, noting there are some very large projects such as the city hall elevator replacement. Councilmember Teitzel referred to annual investment income, commenting this was good news, investment income is up over $200,00 on an annual basis. He asked what changes have been made to the City's investment strategy to increase investment income. Mr. James said the City is actually investing money rather than keeping a large amount in the state pool and interest rates on bonds have gone up. In addition, the Assistant Finance Director has dedicated more time to the City's investment portfolio as well as preparing the PAFR. Councilmember Mesaros asked when the 2017 PAFR will be published. Mr. James relayed the auditors plan to be on site in May; the CAFR will likely not be published until late June/early July. 7. ACTION ITEMS 1. ORDINANCE AMENDING CITY CODE SECTION 3.20.080 UTILITY TAX PAYMENT SCHEDULE Finance Director Scott James explained: • Current City Code; Section 3.20.080, requires tax payers to pay their taxes monthly to the City • Staff recommends Council amend this code o Large tax payers will continue to pay monthly o Small tax payers will pay quarterly • Last year, we receipted 717 Telephone Utility tax payments 0 717 payments totaled $1,097,067 o Of the 717 payments, 578 were less than $600 o The 578 payments totaled only $37,653 • By amending City Code requiring businesses with monthly gross income of $10,000 or more to pay monthly, and requiring all others to pay quarterly o Reduce the number of payments by over 60% o Save staff time o Save businesses money & time spent processing payments Edmonds City Council Approved Minutes March 6, 2018 Page 12 Councilmember Buckshnis commented this is a great idea as it takes the onus off processing small amounts. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO APPROVE ORDINANCE NO.4099, AMENDING EDMONDS CITY CODE SECTION 3.20.080, CHANGING THE TIMING OF TAX PAYMENTS. Councilmember Teitzel observed this would require smaller businesses to adapt their remittance schedule and asked if any businesses had complained. Mr. James said he implemented this same amendment in two other cities and it has always been warmly received. Some of the payments the City receives are for pennies, those businesses will save a significant amount of money and time by making quarterly payments. MOTION CARRIED UNANIMOUSLY. 2. ORDINANCE ESTABLISHING A FUND FOR MARSH RESTORATION AND PRESERVATION Councilmember Buckshnis commented good happens to those who wait; she has waited five years for this. The Edmonds Marsh Wildlife Sanctuary is a unique area; this ordinance establishes a fund for citizens to make donations designated for marsh preservation and restoration. She has already received two checks totaling $7500. COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO APPROVE ORDINANCE NO. 4100, AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING THE EDMONDS CITY CODE TO CREATE A NEW CHAPTER 3.XX MARSH RESTORATION AND PRESERVATION FUND. City Attorney Jeff Taraday suggested the following change: "Section 2. Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum, and shall take effect iRteres,,-being used for- the Ffla -sh and eve daJ!s after passage and publication of yn approved summary thereof consisting ol"the title." COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCILMEMBER MESAROS, TO AMEND SECTION 2 TO REPLACE "INTEREST BEING USED FOR THE MARSH AND ENVIRONMENTAL PROTECTION PROGRAMS AND OTHER SIMILAR PARKS PROJECTS" WITH "FIVE DAYS AFTER PASSAGE AND PUBLICATION OF AN APPROVED SUMMARY THEREOF CONSISTING OF THE TITLE." AMENDMENT CARRIED UNANIMOUSLY. Councilmember Teitzel referred to language in Section 1.3.XX, "...the Edmonds Marsh Restoration and Preservation Fund is for the purpose of receiving donations from the citizens...", pointing out the City has also contributed money to this. He suggested amending it to read "...for the purpose of holding City - provided &nds and receiving donations from the citizens..." COUNCILMEMBER TEITZEL MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO AMEND THE SECTION 1.3.XX TO READ, "THE ADMINISTRATIVE SERVICES DIRECTOR IS HEREBY AUTHORIZED TO CREATE AND NUMBER A NEW FUND TO BE KNOWN AS THE EDMONDS MARSH RESTORATION AND PRESERVATION FUND FOR THE PURPOSE OF HOLDING CITY -PROVIDED FUNDS AND RECEIVING DONATIONS FROM THE CITIZENS FOR,...". AMENDMENT CARRIED UNANIMOUSLY. Councilmember Johnson asked if non -government organizations should be included in Councilmember Teitzel's amendment. Councilmember Buckshnis said citizens or entities of any kind can donate; who was donating did not need to be differentiated. Edmonds City Council Approved Minutes March 6, 2018 Page 13 MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY. 3. EDMONDS HOMELESSNESS RESPONSE PROJECT RFP Council President Nelson Council explained the City approved funds in the 2018 budget to address homelessness. A task force consisting of Councilmembers Fraley-Monillas and Teitzel and himself has met several times along with the Council Assistant Maureen Judge. While brainstorming and discussing the needs of the community, the task force concluded the first step in the process was an RFP to inventory services currently available in the community to assist the homeless. The RFP has a very specific scope of work that includes: A. Identify the type and extent of the homeless problem in Edmonds. B. What services are currently available for the homeless? And what are their funding sources? C. Which organizations are currently researching homelessness? D. How have other cities of similar size reduced homelessness? E. Identify all actual and potential public and private means of funding available to assist in addressing the homelessness F. Identify all plans that have been implemented by a consortium of jurisdictions, in which several cities have pooled resources to establish housing options to address the homelessness issue Council President Nelson advised the budget for the project is $25,000. He sought feedback from Councilmembers on the RFP. Councilmember Mesaros pointed out the RFP will be issued on March 9 and responses are due March 23, giving 2 weeks for responses. He suggested extending that to three weeks to provide consultants ample time to respond. He asked how firm the $25,000 budget was. Councilmember Fraley-Monillas responded she spoke with a number of companies who do this type of work; their guesstimate was $25,000. If the cost is more, the task force will return to the Council. Councilmember Fraley-Monillas pointed out one of the reason for the RFP was the magnitude of the homelessness problem is unknown; there are a lot of opinions and data regarding homelessness in Edmonds, but until there is a better understand of who the homeless are, where they are and what their needs are, the task force is spinning its wheels. There have also been discussions about a part 2 to this RFP to gather other information regard the homeless. Councilmember Tibbott said the RFP did not address housing instability, commenting people without a home is one aspect of homelessness, but instability and imminent potential loss of housing is another. He commented examples of unstable/potential loss of housing include a student that is couch surfing or a family temporarily living with another family. Councilmember Teitzel responded the initial focus is on the truly homeless, living on the streets, living in weekly motels, shelters, vehicle, etc. The scope could be broadened in the future. The task force also recognizes there are existing resources such as the state, county, non-profit and faith agencies, etc. The RFP also seeks to identify and coordinate those resources so the $250,000 allocated in the budget can be used efficiently. Councilmember Buckshnis concurred with Councilmember Mesaros' suggestion to extend the deadline to March 20 or April 6. She asked how the consultant would be paid; from the General Fund or the $250,000 allocated to a Homelessness Response Fund. Councilmember Fraley-Monillas answered the intent is to fund it from the money allocated to the Homelessness Response Fund. She agreed with extending the response to the RFP for a week. She spoke regarding the need to gather information to identify the issue. The task force agrees the expenditure need to have some level of sustainability and not just a onetime expenditure. For example, if the available funds are used to briefly house the homeless, when those funds are exhausted, the people are homeless again. Edmonds City Council Approved Minutes March 6, 2018 Page 14 Councilmember Buckshnis asked if in addition to approving the RFP, the request was to direct staff to create a new Homelessness Respond Fund. Council President Nelson suggested establishing the fund be done at a future meeting. In response to Councilmember Tibbott's comment, Councilmember Johnson agreed the definition of homelessness was very important. The overview provides a definition of homeless for this project that includes those who seek temporary shelter from friends. She referred to the Item H in the Scope of Work, Assessment must include Edmonds and the nearby cities and suggested the list include the unincorporated area of Esperance. Councilmember Fraley-Monillas responded Esperance is considered part of Edmonds as they have an Edmonds address. Many of cities in the list also have unincorporated areas. She noted the homeless issue does not have borders. Councilmember Mesaros agreed with Councilmember Johnson that the definition of homeless in RFP, those who seek seek temporary shelter from friends, addresses couch surfing. Councilmember Teitzel agreed couch surfing was included in the definition, people without permanent stable housing include those staying with friends and have no place else to go. Councilmember Fraley-Monillas said a second phase may be what Councilmember Tibbott addressed, a long term look at housing. COUNCIL PRESIDENT NELSON MOVED, SECONDED BY COUNCILMEMBER FRALEY- MONILLAS, TO APPROVE EDMONDS HOMELESSNESS RESPONSE PROJECT RFP. COUNCILMEMBER MESAROS MOVED, SECONDED BY COUNCILMEMBER BUCKSHNIS, TO AMEND THE RFP TO HAVE A MARCH 20, 2018 DEADLINE FOR SUBMITTALS. AMENDMENT CARRIED UNANIMOUSLY. MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY. 8. COUNCIL COMMITTEE REPORTS 1. COUNCIL COMMITTEE REPORTS AND MINUTES Finance Committee Councilmember Teitzel reported on items the committee discussed: 1. Ordinance revising the ECC Section 3.20.080 regarding Timing of Tax Payment — Approved on tonight's agenda 2. Taxation Methods to Replace SERS Radio System— Informational discussion 3. Ordinances related to the Edmonds Marsh Fund, Homelessness Fund and Opioid Respond Fund - Edmond Marsh Fund Ordinance approved on tonight's agenda, ordinances related to a Homelessness Fund and Opioid Response Fund have been drafted and are awaiting review 4. Public Facilities District Grant Anticipation Loan — PFD received grants for theater equipment and roof totaling $575,000. The City Attorney is preparing an Interlocal Agreement to allow the City to loan the PFD money to cover the expenditures and for the PFD to reimburse the City as funds are provided by the County and State 5. Several financial policies need to be updated or created. The committee will be working on the capital asset policy at the next meeting and plan to work on one policy per meeting. Parks, Planning & Public Works Committee Councilmember Tibbott reported of the nine items on the agenda, most were approved on Consent. He highlighted: Edmonds City Council Approved Minutes March 6, 2018 Page 15 Reservoir recoating project - $3.5 million. Cost was $1.3 million higher than the amount estimated in the CIP due to increased scope Report on Bids for the 238th Walkway - exciting project providing important pedestrian connection between SR 104 and Hwy 99.Originally bid in 2017, bids higher than expected; rebid in 2018, bids 10% lower. Project expected to be completed in 2018. Threshold for agenda items coming to committee, seeking guidance from Council regarding projects they would prefer be schedule as action or study items on Council agenda. Public Safety & Personnel Committee Councilmember Fraley-Monillas reported the committee discussed reclassification of the Program Assistant Parks position due to increase responsibility. She requested staff provide the previous job description when reclassifications are requested. 9. MAYOR'S COMMENTS Mayor Earling relayed the State capital budget was released and includes $500,000 in additional funds for the Senior/Community Center and $500,000 for the Waterfront Enhancement Project adjacent to the Senior/Community Center. He thanked Senator Chase for pushing hard for the Senior Center funds and Representative Peterson for pushing hard for the $500,000 for the Waterfront Enhancement Project. 10. COUNCIL COMMENTS Council President Nelson relayed his respect for the hard work of the women and men of the Police Department and their tireless efforts and putting themselves on the front line. He directed his comments to the Police Chief and specifically a statement the chief released yesterday in response to a false claim of police attention by an African American teenager in Edmonds, specifically the chief s statement about community members rushing to judgment and heightened emotions. "The lack of factual information combined with heightened emotions often results in erroneous conclusions. It's frustrating and disheartening that some of the members of our community allow themselves to rush to judgment." Council President Nelson suggested the heightened emotions and the community's rush judgment may be in response to the Harvey's Lounge bartender wielding a bat while directing racial slurs at African American students, to a noose found dangling at an Edmonds construction site, to swastikas spray painted on cars in neighborhoods, or racial slurs written on elementary school buildings. In this context, publicly shaming an African American teenager will not resolve these emotions nor will capturing a suspect make it go away. For example, the recent Harvey's Lounge hate crime, the crime has been solved, the perpetrator caught. Although justice has been served in that instance, racism by its very nature cannot be arrested away; it is much more sinister and goes much deeper. It is a belief that can rot to the core; it seeks to divide and challenge the fundamental right that we are all equal. The facts are Edmonds has had a series of racial incidents, many of them unsolved. It will require deeper engagement with the community, a community that looks after one another, who cares for one another. Therefore, he invited the Police Chief to join him in meeting with community members who have been most affected by these hateful acts, to listen and to put together a plan that fosters tolerance, acceptance, trust and a safer community for all. Councilmember Teitzel referred to trends at the state and national level regarding assault rifles in response to incidents in Parkland, Florida; Orlando; Las Vegas; and Mukilteo where high capacity assault rifles were used to kill numerous people. He was heartened by the movement he is seeing instead of the inertia of the past. For example, Dick's Sporting Goods' announcement that they will no longer sell assault rifles in their stores. He found this a very positive step and hoped other stores would follow their lead. 11. CONVENE IN EXECUTIVE SESSION REGARDING PENDING OR POTENTIAL LITIGATION PER RCW 42.30.110(1)(i) Edmonds City Council Approved Minutes March 6, 2018 Page 16 This item was not needed. 12. RECONVENE IN OPEN SESSION. POTENTIAL ACTION AS A RESULT OF MEETING IN EXECUTIVE SESSION This item was not needed. 13. ADJOURN With no further business, the Council meeting was adjourned at 9:00 p.m. Lbw DAVID O. EARLING, MAYOR SCOTT PASSEY, CITY CLE Edmonds City Council Approved Minutes March 6, 2018 Page 17 AV,