Cmd030320EDMONDS CITY COUNCIL MEETING
APPROVED MINUTES
March ?, 2020
ELECTED OFFICIALS PRESENT
Mike Nelson, Mayor
Adrienne Fraley-Monillas, Council President
Kristiana Johnson, Councilmember
Luke Distelhorst, Councilmember
Diane Buckshnis, Councilmember
Vivian Olson, Councilmember
Susan Paine, Councilmember
Laura Johnson, Councilmember
ALSO PRESENT
Zach Bauder, Student Representative
CALL TO ORDER/FLAG SALUTE
STAFF PRESENT
Patrick Doherty, Econ. Dev & Comm. Serv. Dir.
Shane Hope, Development Services Director
Scott James, Finance Director
Shannon Burley, Deputy Parks & Recreation Dir.
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 Nelson in the Council
Chambers, 250 5`" Avenue North, Edmonds. The meeting was opened with the flag salute.
2. LAND ACKNOWLEDGEMENT
Council President Fraley-Monillas read the City Council Land Acknowledge Statement: "We acknowledge
the original inhabitants of this place, the Sdohobsh (Snohomish) people and their successors the Tulalip
Tribes, who since time immemorial have hunted, fished, gathered, and taken care of these lands. We respect
their sovereignty, their right to self-determination, and we honor their sacred spiritual connection with the
land and water."
3. ROLL CALL
City Clerk Scott Passey called the roll. All elected officials were present.
4. APPROVAL OF AGENDA
Mayor Nelson relayed that Item 8. 1, Resolution Adopting Council Rules of Procedure and Updating the
Council code of Conduct, had been removed from the agenda as it requires further review.
COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER
DISTELHORST, TO APPROVE THE AGENDA IN CONTENT AND ORDER AS AMENDED.
MOTION CARRIED UNANIMOUSLY.
5. AUDIENCE COMMENTS
Edmonds City Council Approved Minutes
March 3, 2020
Page 1
Marlin Phelps, Marysville, commented when the prosecutor made his presentation to the City Council
two weeks ago, he talked about mistrials. A mistrial only comes from the prosecution; the judge is holding
them to the letter of law and although it may be a rock solid case, the prosecutor can't find his way to a
trial. He recalled the prosecutor's associate used the word "poached" when describing that she came from
the Seattle court, commenting unless it was poaching an egg, the word poach is an illegal act and her misuse
of that word is indicative of their atmosphere. He urged the Council to look at the contradictive presentation
of the prosecutor compared to the public defender's presentation tonight. The City has a wonderful judge,
a wonderful public defender, but the prosecutor is a criminal organization. The public defender's
organization includes some extremely fine attorneys; working both sides of the aisle shows the Council is
ambiguous to sides and makes for a good judicial appointment. The City could ask Ms. Kyle for an ivy
league Edmonds resident to be the as prosecutor and the judge would race to work each morning because
she would then have a fine court to preside over. He referred to the number of police who were present
when the prosecutor made his presentation as posturing. He summarized the prosecutor was not truthful
and the City could do a lot better.
Sheila Cloney, a business owner and president of the Downtown Edmonds Merchants Association
(DEMA), speaking on behalf of DEMA, relayed their support for adopting an ordinance that would add
hotels as a permitted use in the Commercial Waterfront zone. It was her understanding the ordinance did
not change the height restrictions on the waterfront and only added hotels as a permitted business type.
Lora Hein, Edmonds, applauded the Council for moving forward with climate action. She recommended
the book, "The Future We Choose: Surviving the Climate Crisis," by Christiana Figueres and Tom Rivett-
Carnac who wrote the text of the 2015 Paris Agreement. The book has a very uplifting call to action.
Marjie Fields, Edmonds, looked forward to the presentation by the Mayor's Climate Protection
Committee and was proud to be a citizen in a community that supports such efforts. Edmonds is off to a
good start with the commitment to 100% clean energy a couple years ago and needs to build on that
foundation through the recommendations of the Climate Committee.
Will Chen, Edmonds, relayed his excitement with the Council's approval of the Highway 99 center median
improvement project. He imagined a sunny, 85 degree day, cruising into Edmonds from Shoreline at 35
mph and a gateway sign with jumping salmon that says welcome to Edmonds. A quarter mile down the
road, the beauty of multicultural displays can be seen and emersion into Korean cultures with traditional
art, a Chinese dragon and a smiling panda. A visitor could enjoy delicious multicultural foods such as
Korean tofu and Chinese dim sum and after feeling satisfied and appreciated, would plan to bring their
family and friends next time. Continuing on Highway 99, the driver sees lights decorated with Vietnamese
straw hats, Mexican tissue paper art and as they leave Edmonds and enter Lynnwood, a sign saying thank
you for visiting Edmonds. This project is a golden opportunity for the City to engage with Highway 99
minority groups. He thanked Councilmember Olson for joining him to distribute the Housing Commission
surveys in Korean and Chinese at the supermarket.
Michelle Bache, Edmonds, asked the Council to consider passing a resolution opposing SB 6617 and HB
2570, forcing state mandated requirements for ADU and detached ADU allowances on every single family
lot in Edmonds. If the Council supports local planning, control over redevelopment and zoning, and not the
statewide universal urban density zoning requirements, this resolution will be a great public declaration.
There is a precedence for this type of resolution; on October 15, 2019 the City Council voted unanimously
to pass a resolution opposing I-976. These bills push for a state mandated change to the local ability to have
a say in managing group in a way that benefits the unique environment, private property, safety, community
and local topography as well as oppose density on a scale that would make Edmonds match King County
with smaller lot sizes and 2-3 homes on every single family lot in Edmonds. According to SB 1677 and HB
2570, such homes can be built and do not count toward GMA growth projections. The GMA gives control,
Edmonds City Council Approved Minutes
March 3, 2020
Page 2
planning and decision making to local jurisdictions and not to a centralized state urban mandate. The GMA
also identifies a requirement for ongoing public participation with local control of numerous choices as a
key element in the preparation of local Comprehensive Plans. These local considerations are missing from
this proposed legislation. The height restrictions downtown could very well be the next local law to be
mandated by the state, to be relaxed to support this urban density. The environmental impacts of this radical
development could impact streams, shorelines and marsh. The bills are being promoted by Snohomish
County and the state legislature and it is important for them to hear from the Council that the bills are not
in the Edmonds' best interest. The Marko Liias sponsored bill, SB 1677, is out of the Senate and scheduled
for second reading in the House today She urged Mayor Nelson to consider instructing the City's state
lobbyist to join neighboring cities who support defeating this bill.
6. APPROVAL OF CONSENT AGENDA ITEMS
COUNCILMEMBER PAINE MOVED, SECONDED BY COUNCILMEMBER L. JOHNSON, TO
APPROVE THE CONSENT AGENDA.
COUNCILMEMBER BUCKSHNIS MOVED, SECONDED BY COUNCIL PRESIDENT FRALEY-
MONILLAS, TO AMEND THE MOTION TO REMOVE ITEM 6.5, CONFIRMATION OF
BOARD/COMMISSION CANDIDATE, FROM THE CONSENT AGENDA. AMENDMENT
CARRIED UNANIMOUSLY.
MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY. The agenda items approved are as
follows:
1. APPROVAL OF COUNCIL SPECIAL MEETING MINUTES OF FEBRUARY 25, 2020
2. APPROVAL OF COUNCIL MEETING MINUTES OF FEBRUARY 25, 2020
3. APPROVAL OF CLAIM CHECKS, WIRE PAYMENTS AND PAYROLL CHECKS
4. FIELD ARBORIST JOB DESCRIPTION
6. LEVEL 3 COMMUNICATIONS LLC FRANCHISE ORDINANCE
7. PRESENTATIONS
2019 PUBLIC DEFENDER'S OFFICE ANNUAL REPORT
Kathleen Kyle, Executive Director, Snohomish County Public Defender Association (SCPDA):
• Introduction to public defense
o Right to counsel when facing loss of liberty is a fundamental constitutional right
■ Sixth amendment to the US Constitution
* Article I, section 22 of the Washington Constitution
■ "Of all the rights that an accused person has, the right to be represented by counsel is by
far the most pervasive for it affects his ability to assert any other rights he may have."
United States v. Cron ic, 466 U.S. 648, 654 (1984)
Guidelines for Effective Representation
o Washington State Bar Association (WSBA) Indigent Defense Standards
o WSBA Performance Guidelines for Criminal Defense Representation
o Rules of Professional Conduct
o Wilbur et. Al. v. City of Mount Vernon and City of Burlington
o Revised Code of Washington (RCW) and case law
o American Bar Association Ten Principles of Public Defense
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• SCPDA Guidelines for quality representation
o Supervisor Support and Coaching
■ Introduced Christine Olson, Supervisor
o Complaint investigation and resolution
o Performance standards and monitoring
o Professional goals
• What's a misdemeanor?
o Subject to jail
■ Simple misdemeanor
— Maximum of 90 days jail and $1000 fine
■ Gross misdemeanor
— Maximum of 364 days jail and $5000 fine
• Life of a misdemeanor case
Citation or
First Appearance
Non-appearance in
Guilty Finding
Probation
Arrest
in Court
Court
Sentenced
Non-appearance
Bail Set
Bench
Barriers to Service
Warrant/Bail Set
+ 40 + 40
Jail at any stage
What is the impact of jail?
o Inefficient spending: It costs taxpayer dollars to enforce, prosecute, and defend people charged
with misdemeanors.
o Increased unemployment: People we want to be employed cannot get to work and cannot stay
employed.
o Leads to housing instability: Discrimination against people with criminal records in housing
applications
o Suspends medical insurance: Local governments pay the costs of medical care during
incarceration instead of insurance companies. People who need medical care do not have
insurance when released from jail.
o Does not increase safety: The consequence of jail does not distinguish between petty offenses
and serious misdemeanor offenses.
• Who do public defenders represent?
o The poor
o Homeless
o Veterans
o Mentally ill
o Immigrants
o People of color
• Who else works with the same group, or subgroup, of people?
o Churches
o Service organizations
o YWCA
o Job support, e.g. Goodwill
o Food banks
o Local medical, mental health, and chemical dependency services
o Public programs
• Right hand vs. left hand — helping vs. pushing down
• Edmonds Attorneys
o Colin Patrick
o Nikita Parekh
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o SCPDA administrative professionals
• Reception
■ Daily jail visits
* Create client file
Schedule client appointments
Legal assistants
■ Investigators (9)
Social Workers (3)
■ Shared story of social worker advocating for a client
Goals:
o Providing effective assistant of counsel....
o Report on workload
Complying with WSBA Indigent Defense Standards
o Monitor caseloads
o Access to additional professional services: investigator, social worker, immigration consultant,
interpreters
o Diligence in meeting with clients in a confidential setting, reviewing discovery, researching
legal issues
o On-going continuing legal education
Lifelong learners
0 29 SCPDA inhouse CLEs
o Numerous national and regional trainings
Award winning representation
o 2019 Award winners
■ Sonja Hardenbrook
• Will Gelvick and Whitney Rivera
• Neal Friedman
• Bill Jaquette
Community Involvement
o Board members on the following organizations: Cocoon House, Disability Rights Washington,
Legal Foundation of Washington, Snohomish County Legal Services, Washington Defender
Association, Washington Association of Criminal Defense Attorneys
o Associate Faculty at Edmonds Community College, Adjunct Professor at US Law School and
Guest Lecturers at UW
o WSBA Council on Public Defense
o Juvenile Court Cultural Advisory Committee
o Snohomish County Corrections Advisory Committee
o Criminal Justice Stakeholder Committees: Edmonds Municipal Court, Snohomish County Law
& Justice, and Snohomish County Superior Court
o Blessing Bags for people releasing from jail (funded via donation from local bank)
o SCPDA Book Drive
■ Books donated to people in jail at Snohomish County Corrections
o Councilmembers are encouraged to tour the jail
Trauma -Responsive (employees and clientele)
o Safety
o Trustworthiness & Transparency
o Peer Support
o Collaboration & Mutuality
o Empower & Choice
o Cultural, Historical & Gender Issues
o Identified Community Need
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■ Trauma -Responsive Treatment
• Developing future leaders
o Leading millennials presentation by Alexys Michel
o Dare to Lead by Brene Brown Group Discussion
o Up Next: So You Want to Talk about Race, by Ijeoma Oluo
■ 2020 Projects
o Expanding diversity, inclusion and equity
o More on developing future leaders
o Improving writing
• Public Defenders Cases ver year
2016
2017
2018 2019
904*
621
634 669
*includes cases transferred from former public defender
• O 1-4 2018 compared to O 1-4 2019
■ Top 6 categories per quarter in 2019 — these 6 categories make up 78% of the cases assigned for
the year
2018 2019
DWLS 3
Q1 154 170
Q2 158 172
Q3 158 160
Q4 1 173 167
■ Top 6 categories per quarter in 2019 — these 6 categories make up 78% of the cases assigned for
the year
• Serious Misdemeanors in 2019 bv Quarter
Theft
DWLS 3
PDP & Other
Minor
Misdemeanors
DUI
Domestic
Violence
Criminal
Trespass
Q1
34
36
21
20
13
11
Q2
31
37
20
19
12
6
Q3
28
38
20
23
10
10
Q4
23
57
19
14
14
8
• Serious Misdemeanors in 2019 bv Quarter
• Graph of Combined distribution of offense types 2018-2019
o DWLS 3`d Degree
o Theft
o Misdemeanors Unlisted
o DUI
o Domestic violence
o Criminal Trespass
o Court Order Violation
o DWLS 15' and 2nd
o Simple Traffic
o Obstruct public servant
o Assault (not DV)
o Reckless Driving
o Hit and Run
o Alcohol related offenses
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Domestic
Violence
DUI
Court Order
Violations
Q1
13
20
4
Q2
12
19
7
Q3
10
23
6
Q4
14
14
10
• Graph of Combined distribution of offense types 2018-2019
o DWLS 3`d Degree
o Theft
o Misdemeanors Unlisted
o DUI
o Domestic violence
o Criminal Trespass
o Court Order Violation
o DWLS 15' and 2nd
o Simple Traffic
o Obstruct public servant
o Assault (not DV)
o Reckless Driving
o Hit and Run
o Alcohol related offenses
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o Malicious Mischief
o Harassment
■ Distribution of Offense Types 2018 — 2019
Offense Ty e
2018
2019
Driving Charges
43%
46%
Property Char es
27%
18%
Crimes Against Person
10%
16%
Drug and/or Alcohol as an element of Crime
14%
1 10%
Others
5%
1 11%
■ Example of Cloudrow Dashboard (pie chart)
o Count of File Name by Offense Type — All Time — Edmonds
■ Illustrates Theft, DWLS 3 and Possession of Drug Paraphernalia make up more than 50%
of cases
Councilmember Paine was glad SCPDA was doing trauma work for its staff and clientele. She asked what
it would take to develop a DWLS3 relicensing program. Ms. Kyle said probably all that would be required
would be a part-time attorney working with clients. She explained when people have a license suspended,
it is generally due to unpaid tickets. The lawyer could contact the courts to ask for them to be removed from
collections and a payment schedule established which would lift the hold on the license and allow the person
to get relicensed even which they are determining the payment schedule which in turn allows people better
access to employment and transportation which hopefully improves their ability to pay. It would be great
if Washington had a consolidated process, currently people have to go to each court.
Councilmember Paine commented collections are also not consolidated. Ms. Kyle said people in Edmonds
with DWLS owe a lot of money; there are plans for a legal financial obligation reconsideration day this
spring which has been done in Pierce and Kitsap counties, a day where people can come in, have remission
on a lot of their legal/financial obligations including the district court which she was hopeful would allow
some people to get relicensed.
Councilmember Paine asked if Snohomish County had any other programs; for example, Seattle had a
program where people could do volunteer work for qualified non -profits for forgiveness of infraction costs.
Ms. Kyle answered NW Justice Project was doing a relicensing program but she was unsure if they still
were. The City of Spokane and Spokane County partnered on a relicensing program. She recalled the NW
Justice Project's former director expressed frustration that it depended on where people's infractions came
from and some jurisdiction were easier to work with than others.
Council President Fraley-Monillas asked how many trials SCPDA had this year for Edmonds. Ms. Kyle
answered there were six trials. Council President Fraley-Monillas observed there were a lot of thefts and
asked where they were occurring. Ms. Kyle said most Theft 3 are from Safeway and WinCo. Her review of
all the thefts in Edmonds in 2016 found 50% were from Safeway and 50% were alcohol related. Safeway
has since taken some preventative measures and it may be interesting to review that again. A burglary can
be committed at a retail store if the person had a trespass, comes back uninvited and commits a crime. It
depends on how the law enforcement officer sees the crime or what the victim is requesting. SCPDA would
also represent that person, but it would be in superior court. Council President Fraley-Monillas observed
Safeway locks up their alcohol and WinCo has a separate staffed area for alcohol. Ms. Kyle anticipated
alcohol theft has gone down, noting prevention goes a long way. Waiting until people leave store to ask
what's in their pocket is not a good prevention program.
Councilmember Buckshnis commented she enjoyed reading the report but could not reconcile the numbers
to the report. She observed the numbers are extremely consistent, 621 in 2017, 634 in 2018 and 669 in 2019,
and asked if that was reality with police or were the crimes consistent. She asked for Ms. Kyle's PowerPoint.
Edmonds City Council Approved Minutes
March 3, 2020
Page 7
Ms. Kyle said anecdotally the number of cases is based on enforcement. If the City hires more police
officers, the City will see more crimes, not because there is more crime but there is a higher level of
enforcement. Generally crime has been falling since the mid-1990s, but the population of Snohomish
County is growing so there may be more events.
Councilmember Distelhorst inquired about the community court program and what could be done to
support/increase that activity. Ms. Kyle answered community court can be a way to divert petty crimes.
The way that Judge Coburn is doing community court is a different model; once a case is resolved and the
person has been convicted and placed on probation, they are then ordered to do/not do certain things. The
traditional model would bring them back to municipal court if they are not in compliance and to determine
if there was a violation of the conditions of sentence and if so, was it willful. Judge Coburn's community
court model, held at Swedish, also invites community providers to the same location. So if a person has not
taken a class because they do not have transportation or money, that provider is present and people can sign
up and another provider may provide a bus ticket to get to the class. The community court model is intended
to help people comply with the court's order and case barriers. In atypical community court, that is done
pre -conviction and avoids all the collateral consequences of a criminal crime on a person's record and
offering those services up front. Judge Coburn's community court is post -conviction so a much smaller
group. It is also people who are on probation so petty offenses like DWLS 3, often they are not on probation
and their cases are closed at judgment. She did not have data about the types of crimes that are heard at
community court.
Student Rep Bauder referred to SCPDA's plans to expand diversity and inclusion and asked what that
means, what it looks like and the reason. Ms. Kyle said she has talked to various consultants who do that
type of work about conducting training on common definitions so everyone is speaking the same language
and meeting with the leadership teams to ensure recruiting and hiring practices are done in a way that will
increase diversity. Part of the theory of public defense is although they mirrorthe constituents of Snohomish
County, they do not mirror the people they serve; they see a higher level of people of color and
disenfranchisement and they would like to more welcoming by looking like the community they serve.
Ms. Kyle recalled uncomfortable conversations in Edmonds Municipal Court that illustrate the importance
of this work; during a trial last week a female lawyer of color was told by a juror that he didn't like the way
she was asking questions during jury selection and he didn't like the sound of her voice. SCPDA trains its
lawyers when they get an uncomfortable answer to thank the person and then ask if anyone else feels the
same way. She wondered if asking the lawyer to thank them was violating antidiscrimination laws although
she felt that was the right strategy to ensure people did not feel shamed by their bias. There was also an
uncomfortable exchange with the prosecutor's office where Ms. Parekh raised the fact that a case a few
weeks ago ended in a certain resolution and in a similar case, the only difference was the client was a person
of color, and could she get the same deal as the previous case. The prosecutor became defensive and felt
she was calling him a racist. She concluded it was not only important that the public defender's office have
the same common definitions, but that all the stakeholders do so there can be a conversation. Social science
says if you can talk about it, you can reduce the impact of implicit bias.
2. PRESENTATION OF RECENT ACTIONS & ACTIVITIES OF THE MAYORS' CLIMATE
PROTECTION COMMITTEE
Mayor's Climate Protection Committee Co -Chair Lisa Conley introduced Co -Chair Terese Richmond. Ms.
Conley reviewed:
• Scientific consensus
o Graph of temperature anomaly 1880-2020
■ Illustrates temperatures continue to trend upward with GHG
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o Multiple studies published in peer-reviewed scientific journals show that 97% of climate
scientists agree that climate warming trends over the past century are due to human activities
o The earth's climate is changing in response to increasing concentration of GHG according to
the American Chemical Society
o Further information regarding the upward trend regarding GHG can be found at
Climate.NASA.gov
■ Edmonds Climate Leadership
0 2005 — Former Mayor Gary Haakenson formed the Citizens Committee
0 2006 —City Council formally expressed support for the Kyoto Protocol by Resolution No. 1129
• Conduct an emissions inventory and forecast
■ Set an emissions reduction target
■ Develop an action plan to achieve the target
■ Implement a plan and periodically review progress
■ Update the plan
o 2009 — Conducted 1 st Green House Gas Inventory
0 2010 — Developed Climate Action Plan (CAP)
0 2017 — Former Mayor Earling signed the Mayors National Climate Action Agenda
0 2018 — Taming Big Food Held to Raise Community Awareness
■ 2019: Reducing GHG Emissions
o GHG Emissions Inventory and Forecast
■ Hired consultants
■ Created tool to provide snapshots of the City's emissions
o GHG Reduction Target
A majority of members agreed to strive to keep GHG below 1.5 degrees C
o Encourage Citizens to be Part of the Solution
o Prepared to Update Climate Action Plan
Co -Chair Terese Richmond expressed appreciation for the assistance of Steve Fisher and Cynthia Pruitt
and the committee members who developed the 2010 plan and worked on its implementation. She
recognized Councilmember Buckshnis, the past liaison, and welcomed Councilmember L. Johnson. Ms.
Richmond reviewed:
■ 2020 Focus
o Update the 2010 Climate Action Plan
o Encourage citizens to be part of the solution
Councilmember Buckshnis agreed something needed to be done and citizens need to help each other learn
to do things better.
Councilmember K. Johnson assured the committee has the Council's support, noting four Councilmembers
are serving or have served on the committee. She served as liaison in 2014 and she recognized Ms. Pruitt's
active leadership. She thanked the committee for their hard work.
Councilmember L. Johnson thanked Ms. Conley and Ms. Richmond for co-chairing the committee. She
was excited to join the team and looked forward to 2020 priorities especially encouraging citizens to be
part of the solution and learning from the wealth of knowledge on the committee. The committee meets the
first Thursday of the month at 8:45 a.m. in the Brackett Room in City Hall.
Councilmember Paine said she loves the work the committee is doing, especially data analysis. She thanked
the committee for their work.
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March 3, 2020
Page 9
Ms. Conley commented an acquaintance is working on Mukilteo's plan and they are looking at Edmonds'
plan and the leadership role Edmonds has taken in the community.
3. SENIOR CENTER WAN REQUEST
Finance Committee Scott James introduced Gary Haakenson, Senior Center Board President; Chris Wolfe,
Accounting Manager; Daniel Johnson, Campaign Director; and Farrell Fleming, Executive Director.
• The Loan Request
o The Senior Center is requesting the City to help them to secure a $2 million Line of Credit
■ Background
o The South County Senior Center (SCSC) was founded in 1967 and began offering programs at
their present waterfront location
o In 1971, the City became owner of the property and at the time, the City declared it would be
the permanent home of the Senior Center
o In 2011, SCSC changed its legal name to the Edmonds Senior Center
o In 2013, the City developed the Strategic Action Plan that included the Senior Center
Rehabilitation Objective
o October 2017, the Edmonds Senior Center hosted the Waterfront Center Gala, kicking off the
$16.35 million community fundraising campaign to replace the 58 year old building
o April 2019, the City and the Senior Center sign 40 lease agreement
o July 2019, the Senior Center breaks ground on the new Edmonds Waterfront Center
■ Photographs of the center under construction
o The new Edmonds Waterfront Center is scheduled to be completed in September
o To date, the Senior Center has raised $14,050,000
o There is a $2.3 million funding gap
o The Senior Center continues to reach out to donors and apply for grants
o The Edmonds Senior Center (ESC) is requesting the City of Edmonds to assist them in securing
a loan of up to $2 million for two reasons:
in Washington State's $4 million grant contingency (not released until can show funding
commitment package)
It Senior Center's donor pledges of $1,037,000 are payable over 5 years
■ Pro Forma: Revenues
Description
2021
2022
2023
2024
2025
2026
2027
Membership
$180,000
$185,400
$190,963
$196,692
$202,593
$208,670
$214,929
Dues & Prgrm
Service Fees
Rental Income
350,100
360,603
371,421
382,564
394,041
405,862
418,038
Food Services
175,000
180,250
185,658
191,228
196,965
202,874
208,960
Income
Building Usage
60,000
61,800
63,654
65,564
67,531
69,557
71,644
Fee Cit
Thrift Store
225,000
231,750
238,703
245,864
253.240
260,837
268,662
Public Support
Government
Fees & Grants
160,000
164,800
169,744
174,836
180,081
185,483
191,047
Contributions,
Gifts & Grants
180,000
185,400
190,962
196,691
202,592
208,670
214,930
Fundraising
180,000
185,400
190,962
1 196,691
202,592
208,670
214;930
Total Revenue
$1,510,100
$1,555,403
$1,602,067
$1,650,130
$1,699,635
$],750,623
$1,803,140
o Membership & Programs
■ Membership: Over last found years, membership has varied between 2,000 to 1,400 today
- Annually, the Center has served 3,000 to 4,000 people
- The services provided by the Center include:
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- Subsidized lunch program - severing up to 500 seniors with 10,000 meals annually at
a suggested donation of $3.00
- Day Trips - 50 annual trips serving 300 participants
- Health & Wellness Programs: Bastyr University Natural Medicine Clinic, free dental
van services, and Nurse managed foot care
- Music: Sound Singers with over 30 performances annually
- Annual Healthy Living Fair with 600 attendees
Rental Income Projections
Description
Total
Dates
Total
Rentals
Rental %
Rental
Rate
Gross
Potential
Gross
Estimate
Peak Season
Saturday Base Rate
Sunday Base Rate
Sunday Non -Profit Rate
Friday Base Rate
Friday Non -Profit Rate
2015
$155P738
2016
$157,679
2017
$149,314
20 20 100 $4,500 $90,000
$90,000
20 12 75 2,500 50,000
30,000
3 2,000
6,000
20 10 60 1_,500 30,000
15,000
2 1,200
2,400
Off Season
Saturday Base Rate
Sunday Base Rate
Sunday Non -Profit Rate
Friday Base Rate
Friday Non -Profit Rate
$238,703
2024*
$245,864
2025*
$253,240
30 24 80 3,500 105,000
84,000
30 12 60 2,500 75,000
30,000
6 2,00
12,000
30 9 50 1,500 45,000
13,500
6 1,200
7,200
Peak Season Total
60
47
78.3
170,000
143,400
Off Season Total
90
57
63.3
225,000
146,700
Other Rentals*
Unknown
60,000
Grand Total
150
104
69.3
$395,000
$350,100
■ Food Services Income & Building Usage Fee
- Food Services Income is a new source of revenue
- Senior Center is in negotiations with Feedme Hospitality and Restaurant Group for
catering services
- Building Usage Fee represents City's estimated fees from Recreation programs booked
at the new Waterfront Center
■ Thrift Store Income
Grath January - Deceml
Year
Thrift Store Sales
2012
$138,675
2013
$155,611
2014
$144,241
2015
$155P738
2016
$157,679
2017
$149,314
2018
$159,358
2019
$174,208
2020*
$225,000
2021 *
$225,000
2022*
$231,750
2023*
$238,703
2024*
$245,864
2025*
$253,240
ler 2018-2020
Public Support
- Government Fees & Grants
City of Edmonds - $75,000/year
Edmonds City Council Approved Minutes
March 3, 2020
Page 11
Snohomish County - $75,000/year
- Contributions $154,500 over last 4 years
- Fundraising in 2015
Pro Forma 2021 Expense
o 2018 Ooeratinp- Expense (Actuals) 2021 Operating Expenses (Projected)
Description
2018
Actuals
2021
Proiected
Increase
Decrease
% Change
FTEs
7.33
10.2
2.87
39.15
Expenses
Wages & Benefits
Wages & Salaries
Payroll Taxes
Medical Benefits
Total Wages & Benefits
$405,006
$417,157
$429,674
$442,564
$403,826 572,528 168,701 1
41.78
34,240 52,229 17,989
52.54
22,388 65,760 43,372
193.73
$460,455 $690,517 $230,062
49.96
Supplies & Equip
Office & Operating Supplies
Small Tools & Minor Equip
Total Supplies & Equip
Fundraising (Capital
Retirement
120,000
120,000
120,000
40,289 54,000 13,711
34.03
1,657 6,000 4,343
262.10
41,945 60,000 18,054
43.04
Services & Other Costs
Professional Services
Communications
Travel
Advertising
Operating Rentals & Leases
Insurance
Utility Services
Repairs & Maintenance
Miscellaneous
Program Activity -trips, recogn, etc.
Printing/Public Information
Taxes & Other Misc Expenses
Total Services & Other Costs
(328,571)
(320,000)
(311,428)
(302,857)
36,896 45,000 8,104
21.96
15,267 18,000 2,733
17.90
1,467 3,000 1,533
104.50
1,449 12,000 10,551
728.16
4,153 90,000 85,847
2067.11
24,528 75,000 50,472
205.77
36,598 54,000 17,402
47.55
24,313 45,000 20,687
1 85.09
(60,000)
Net Return
14,898 30,000 15,102
101.37
16,823 3000 13,177
78.33
32,844 650 000 27,156
82.68
209,236 $462,000 $252,764
120.80
Total Expenses
$711,637
1 $1,12,517
1 $500,880
70.38
■ Pro Forma - Net Returns from operations
Description
2021
Year 1
2022
Year 2
2023
Year 3
2024
Year 4
2025
Year 5
2026
Year 6
2027
Year 7
Net Return from
Operations
$297,583
$393,210
$405,006
$417,157
$429,674
$442,564
$455,840
Pled es Receivable
178,371
147,971
146,971
103,571
100,000
--
--
Fundraising (Capital
Retirement
120,000
120,000
120,000
120,000
120,000
120,000
120,000
Debt Service Bank
(345,714)
(337,143)
(328,571)
(320,000)
(311,428)
(302,857)
(294,287)
Debt Service (Other)
(53,904)
(53,904)
(53,904)
(53,904)
(53,904)
--
Capital Reserves
--
(60,000)
(60,000)
(60,000)
(60,000)
(60,000)
(60,000)
Net Return
$196,336
$210,134
$229,502
$206,824
$224,342
$199,707
$221,553
Loan Request
o The Senior Center is requesting the City to help them to secure a $2 million Line of Credit
o This proposal would have the Senior Center obtaining a loan from a bank, and
o The City would guarantee the loan by depositing $2 million into a certificate of deposit at the
loaning bank
o Initially, the Senior Center loan will start as Line of Credit
Edmonds City Council Approved Minutes
March 3, 2020
Page 12
o The Line of Credit converts to a seven-year loan on November 1st this year
Three Banks Submitted Term Sheets
Financial Institution
Investment
Loan Rate
Loan
Other
Other
Rate
Fees
Fees
First Financial NW Bank
Start at 1.68%
CD + 2%
$10,000
$1,500
Move all banking activity to
FFN W
Cashmere Bank
5 bps above
Floating, start
$1,000
Federally Taxable, no
LGIP
at 4.75%
prepayment penalty
WaFd Bank Option A
2%
3.12%
$50k/year
$5,000
For all three options:
Prepayment fee that will cover
WaFd Bank Option B
1%
3.12%
$25k/year
$5,000
bank's loss incurred from
prepayment
WaFd Bank Option C
0%
3.12%
$5k/year
Y
$5 000
Pros and Cons of Bank Proposals
o Bank 1: First Financial Northwest Bank
Pros:
➢ Overall, most beneficial to City & Senior Center
➢ Most competitive loan rate = CD rate + 2%
➢ City receives competitive interest rate on CD
Cons:
➢ Loan fees/cost = $11,500
o Bank 2: Cashmere Valley Bank
Pros:
➢ City receives competitive interest rate on CD
➢ Lowest loan fee = $1,000
Cons:
➢ Loan rate is floating rate and tied to Wall Street Journal Prime Rate that is currently at
4.75%
o Bank 3: WaFd Bank
Pros:
➢ Bank offered three options
➢ Option 1 pays City highest CD interest rate at 2%
➢ Loan rate fixed at 3.12% for all 3 options
Cons:
➢ Loan fees are high, Option 1 = $50,000/year
➢ Loan fees for option 2 = $25,000/year & 1$ for CD
➢ Loan fees for option 3 = $5,000/year & 0% for CD
City Attorney Jeff Taraday apologized the Amendment to Ground Lease was not included in the Council
packet, but even if it had been, it has been modified since the packet was prepared. He explained ordinarily
a topic would not be introduced without information in the packet, but this is a time sensitive matter
particularly from the Senior Center's perspective. He relayed his understanding that the Senior Center
would like the Council to move forward with approval of the amendment as fast as possible. No action was
expected tonight, but to hopefully take action at the March 17' meeting, it was necessary to present a draft
to the Council for review.
Mr. Taraday provided big picture context for the direction given to him, prepare a document that would
build on the other documents that will need to be created such as a promissory note between the Senior
Center and the bank and a three -party guarantee between the City, the bank and the Senior Center separate.
This document is a two-party agreement between the City and the Senior Center amending the Ground
Lease. One of the overarching goals was to try to ensure this did not become a loan. The City would be
signing onto a guarantee with the hope it does not become a loan and hoping the City's $2M CD comes
back to the City. He explained a lot of the terms are designed to frankly create as much motivation for the
Edmonds City Council Approved Minutes
March 3, 2020
Page 13
Senior Center's possible donor pool to be as generous as possible so that when the Senior Center's loan
matures, they can have it fully paid back and the City can be removed from the guarantee. If some of the
terms seem "harsh," they are designed to motivate additional donations.
Mr. Taraday explained this is his latest working draft and is not a draft that the parties have agreed to.
Although he and the Senior Center representatives have been working very cooperatively, the Senior Center
has major concerns with some of the language in document. The Senior Center Board is not prepared to
approve the proposed agreement and further negotiations is likely.
Mr. Taraday reviewed the Amendment to Ground Lease. He referred to Section 2.1 Initial Term, explaining
that is being modified to clarify that the 40 year term of the lease has the potential to be amended. He
referred to Section 2 Extension of Lease Term, explaining the ground lease provides a 15 year option for
the Senior Center to extend. The added language makes it clear that the letter of credit must have been fully
paid off for there to be any eligibility for an extension. He referred to Section 2.3 Shortening of Lease Term,
explaining this is a key provision of the guarantee format. The language was drafted with the intent of
motivating as many future donors and pledges as possible to ensure there was not a perception that there
was no consequence for the Senior Center not paying back the loan. For every $100, 000 of the City's
guarantee payment (any portion of the $2M CD that is paid to bank to substitute for money that should have
come from Senior Center), the lease term is shorted by a year. He reviewed two of the five examples in the
document:
Example #2. If the City's Guarantee Payment equals exactly One Million Two Hundred Thousand and
One Dollars ($1,200,001), on the Maturity Date, and no Guarantee Payments are made
before the Maturity Date, then the Lease Term shall be shortened by thirteen years.
Example #5. If the City's Guarantee Payment equals exactly One Million Two Hundred Thousand and
One Dollars ($1,200,001), on the Maturity Date, and the City also had to make three Ten
Thousand Dollar payments during the term of the Letter of Credit, then the Lease Term shall
be shorted by thirteen years (in this case the three Ten Thousand Dollar payments shall be
combined in the same fraction of $100,000 as the One Dollar over the $1,200,000).
Mr. Taraday referred to Section 2.4 Regardless of the amount or number of the Guarantee Payments
made..., explaining the intent is to ensure, regardless of how many years are shaved off the lease, hopefully
zero, that the Senior Center's relationship with the State of Washington is not jeopardized. In the grant
security documents, the Senior Center has a leasehold deed of trust with the State of Washington which
requires the Senior Center to operate its program on the site for at least 10 years and if not, the grant money
may need to be paid back.
Councilmember Buckshnis commented the document is very convoluted and could be simpler. She has
been on the Senior Center Board for a long time and as well as on the finance committee. She said Section
2.3 is too complicated and she believed the Senior Center would pay back the money. Rather than having
five examples, she suggested a statement that the lease could be terminated if the City is not paid. She
acknowledged this section was very innovative but she preferred something simpler without listing
examples. She believed the pro forma would be realized and the loan would be repaid. Mr. Taraday agreed
theoretically the examples could be deleted, they are not absolutely critical to the document. He finds when
drafting language that is potentially ambiguous, examples provides clarity. Councilmember Buckshnis
preferred a simpler document with a statement like if the loan is not paid off in seven years, the City will
address whatever needs to be addressed. Mr. Taraday said that was an option the Council could direct him
to pursue, but there is concern about viability under the terms of the State grant.
Mr. Taraday said the Council ultimately controls the terms of the document. He wanted the Council to have
insight into the issues being considered when drafting the document. One of the concerns was what if the
Senior Center is short by $100,000, would the Council want to do something so harsh as to terminate the
Edmonds City Council Approved Minutes
March 3, 2020
Page 14
40 year ground lease. That is why it was drafted with a structure that could go up or down; trying to find a
way to address every shade of gray. Councilmember Buckshnis said that was not done with the Public
Facilities District (PFD) and she questioned why the Senior Center was being treat differently. Mr. Taraday
said he was not involved with PFD agreement but there were significant differences such as the PFD does
not have an open ended capital campaign. Councilmember Buckshnis commented the PFD has had financial
issues for a long time.
Council President Fraley-Monillas raised a point of order, stating the discussion was getting off the issue.
Mayor Nelson accepted her point of order. Mr. Taraday said at the end of the day, he will do whatever the
Council directs him to do.
Councilmember Olson referred to the $100,000 amount and asked whether that was an actual value of the
use of the property or was it an arbitrary amount. She did not want it to be a punitive amount in excess of
the value to the City. Mr. Taraday said that was difficult to answer because the City does not get rent from
the Senior Center under the ground lease which makes it difficult to place a market value on what fair
market value of the ground lease would be if the City were ground leasing to a for-profit entity. From the
beginning, this was viewed as a partnership and figuring out fair market value of the dirt was not done.
Councilmember Olson hoped the Council did not lose sight of it being a partnership. She wanted to ensure
whatever number was assigned to the lease decrease was reasonable. She liked the proposed approach
because it was tied to the volume of deficit if there is one, but she was concerned the dollar amount might
be high and therefore punitive which she preferred not to do in view of the partnership.
Councilmember Paine referred to paragraph 2.4 and asked the start date of the State grant. Mr. Taraday
answered as soon as the Senior Center gets the $2M. Councilmember Paine asked if was when the Senior
Center received certificate of occupancy. Mr. Taraday answered no, the Senior Center needs the State grant
to complete construction. Councilmember Paine asked if the guarantee was for 10 years of operations after
the opening. Mr. Fleming answered yes. Councilmember Paine posed the question, what if everything goes
upside down, is there any opportunity for a successor organization to negotiate the grant with the State. Is
the State grant strictly with the Senior Center or can it be renegotiated by a successor organization? Mr.
Taraday clarified her question was in the event the Senior Center failed to operate for 10 years. Mr. Johnson
said as long as the building is used for the same purpose for which the grant was issued. The grant is through
the Department of Commerce; there are strict conditions that must be met and there is no negotiating.
Council President Fraley-Monillas commented she viewed this a good faith type issue. The assumption is
the Senior Center will pay this, but she was concerned if there was a decline in the economy, $2M was a
lot of money to tie up. She asked if the assumption was the Senior Center would pay back the $2M. Mr.
Taraday said if he knew for sure they would pay, he would not need to draft all these provisions. He was
confident the Senior Center would make the best effort to follow through on their capital campaign and he
personally confident they would succeed. He was trying to put the City in the best possible position. His
starting point was to assume the City was willing to act as a grantor for $2M, because if not, this agreement
was unnecessary. So the issue then is how to draft the document to create conditions to make it as likely as
possible that the $2M will be paid back; that is what the proposed terms are intended to do.
Council President Fraley-Monillas said her interest is to protect the City but she also serves on the Senior
Center Board, but recused herself when this issue arose. The Council's goal is first to protect the City. She
believed the Senior Center will pay back the $2M so did not have an issue with shortening the lease term
and if the Senior Center intended to pay the City back, they should be okay with that provision. She did not
object to having some consequence if the funds are not paid back. It is ultimately the City's land and the
taxpayers' money.
Edmonds City Council Approved Minutes
March 3, 2020
Page 15
Mr. Haakenson said these clauses were not in previous drafts. In the previous document, for a $2M line of
credit, if the Senior Center "borrowed" $100,000, the lease would be reduced from 40 years to 39 years.
Mr. Taraday clarified it was not how much was borrowed from the bank but how much the City needed to
act as guarantor of missed payments. If the Senior Center borrow $2M and pays it all off, there is no
reduction in the lease term. It is only the City's payments as guarantor that shave time off the lease term.
Mr. James clarified at the end of seven years, if the City had to pay $100,000 of the Senior Center's loan,
the lease would be reduced by one year. Mr. Haakenson clarified if the Senior Center makes the $100,000
payment, this clause does not go into effect. Mr. Taraday answered that is correct.
Mr. Taraday referred to the amendments in paragraph 1.2 Allowed Use of the Property by the Senior Center,
explaining some of the provisions are not as connected to the actual guarantee arrangement as they are
things that the Parks Department needed clarified in the ground lease and likely would be in a future
operating agreement. The City has leverage now because it is about to guarantee a $2M loan; if there is
anything about the original ground lease that needs to be clarified in the City's favor, now is the time to ask
for clarification. He acknowledged the Senior Center has a lot of concern with the provisions in this section.
Mr. Taraday referred to paragraph 1.2.1.1, explaining language was added to this section that clarifies that
the Senior Center is authorized to enter into an agreement with a third party caterer to pursue the revenue.
There was always reference in the document to revenue generating activities, but an exclusive catering
agreement that the Senior Center is working on had not been contemplated. He referred to "SUBJECT TO
THE FOLLOWING PROVISIONS" 1.2.1. La — h which address the catering agreement. When the ground
lease began, the City knew it had the right to use the building during certain times and those times were
completely free of any obligation to pay food minimums to a caterer, etc. When the subject of the catering
agreement arose, there was concern with how it would affect the City's use of the property, use of the
building as a community center, etc. Now is the time to clarify that because, 1) the City has leverage, and
2) the Senior Center is about to enter into an agreement with the caterer.
Mr. Taraday explained the paragraphs in 1.2.1.1:
a. Asks that the City have an opportunity to comment on the agreement
b. The catering agreement does not extend beyond five years and any extension subject to City
Council approval
c. Regardless of the day, time, or number of attendees, the caterer's exclusivity rights on the second
floor of the Edmonds Waterfront Center shall be limited to precluding on-site catering served by
another professional caterer.
Mr. Taraday explained there are several paragraphs that address how food service will work on the first
floor and several other paragraphs that address how food service will work on the second floor. After
meeting with the caterer today, there are good reasons to separate those. The caterer will have a health
permit for the entire first floor and wants to ensure he has some control. The second floor has always been
conceived of as the community center portion of the building. The language in paragraphs c, d, e address
ensuring the second floor of the building is able to function as a community center without being burdened
by any catering operations. On the second floor, if someone uses a caterer to serve food, the on-site caterer
gets that business. There are several exclusions for things like sack lunches, potlucks, boxed lunches, or an
off-site caterer providing a self -serve buffet. None of those exclusions would be allowed on the first floor.
Mr. Taraday explained paragraph f, g and h address the caterer's rights on the first floor which are much
stronger than the second floor. Essentially, with few exceptions, any food or beverage consumed on the
first floor is subject to and will be provided by the caterer that the Senior Center contracts with. The
exceptions to that are if an event takes place during the City's hours (Monday — Thursday, 4 p.m. to close)
in the main banquet room of the first floor such as a community meeting or open house regarding a public
project that would generally not have food service, there is no requirement that food service be provided.
Edmonds City Council Approved Minutes
March 3, 2020
Page 16
Paragraph g was intended to include a coffee and cookies exception. Paragraph h contains two exceptions
for special events that would occur in the banquet space during times that the City would not ordinarily
have access, 1) Daddy Daughter Dance (cupcake and juice exception), and 2) pancake breakfast (the City's
annual holiday breakfast for city employees). He said because the caterer does not want anyone in the first
floor kitchen space, that breakfast would be prepared and served by the caterer and there may be some cost
associated with it.
Mr. Taraday referred to paragraph 1.2.2 Allowed Uses of the Property by the City, noting there is some
overlap between the allowed uses and catering. These paragraphs define the City and the Senior Center
hours, the City's hours are Monday — Thursday, 4 p.m. to close and everything else is Senior Center hours
with a couple exceptions. The Senior Center has strong objection to the language related to rental of the
facility during the City's hours and candidly that was not been discussed during the initial drafting of the
ground lease; the ground lease is completely silent regarding whether the City's hours can be rented.
Mr. Taraday referred to paragraph 1.2.2.1 related to exceptions to the Senior Center's hours, times that the
City gets to use the building that would ordinally be Senior Center times: a) lockable exclusive use storage
space to facilitate the City's use of the site, b) one of the second floor classrooms during the summertime
and other weekdays when Edmonds School District is not in session, c) Daddy Daughter Dance, and d)
annual holiday breakfast.
Mr. Taraday referred to paragraph 1.2.3, explaining the original agreement addressed allocating expenses
for use of the building; additional language has been added to address the concern that the document was
very open-ended.
Councilmember K. Johnson asked if the City would have access to the Waterfront Center for a retreat or a
climate conference that is not during the Monday — Thursday, 4 p.m. to close time. Mr. Taraday referred to
existing language in paragraph 1.2.2 about scheduling, "The City and Senior Center agree to meet on a
regular on-going basis (at least quarterly) to review their respective program schedules and determine
whether there is any unprogrammed (surplus) time after accounting for each party's program needs during
that party's first -priority time periods. At these meetings each party shall offer its remaining unprogrammed
first -priority time slots to the other party for use by the other party." Mr. Taraday said it was likely the
events Councilmember K. Johnson referred to would occur on the second floor of the building especially
if'were on the weekend. Those hours would be accomplished via this trading process that is outlined in
paragraph 1.2.2.
Councilmember K. Johnson envisioned something like an arts summit or a climate summit and asked if
space for that could be negotiated or did it need to be done at the quarterly meeting. Mr. Taraday said if the
City is the organizer, it may depend on the number of rooms the City would need, etc. Councilmember K.
Johnson said it would be nice to have language that would provide flexibility. Mr. Taraday said there is a
fair amount of flexibility in identifying the City's and the Senior Center's priority hours and the parties can
program the space as they wish during those priorities hours. Both parties will have leftover hours and it
would be via the swapping of those hours that events like that would be scheduled. Councilmember K.
Johnson said determining that on a quarterly basis may not provide enough flexibility. Mr. Taraday said the
agreement states at least quarterly; he will take direction from the Council regarding any revisions.
For people who have not been involved in discussion about the lunch service, Councilmember Olson
recognized it is a very big give on the part of the caterer to provide lunches for $3; that is highly subsidized
and it is only via the profit on other events that the caterer can afford to do that.
Council President Fraley-Monillas referred to paragraph 1.2.1.1, and asked if the City has ever used a
caterer..Mr. James answered the City seldom uses catering; he recalled food service for the Mayor's going
Edmonds City Council Approved Minutes
March 3, 2020
Page 17
away event at the ECA and the annual volunteer recognition. Council President Fraley-Monillas
commented a caterer was not used for the volunteer recognition, it was purchased at Costco, and Council
retreats usually include boxed lunches.
Councilmember Buckshnis referred to paragraph 1.2.1. La related to the City having input into the catering
agreement. She suggested paragraphs b -h should be subsections of 1.2.1.1.a. Mr. Taraday said subsection
a was drafted before the other sections and it may not be as necessary as it once was. He included that
paragraph to account for the possibility that the City would have an opportunity to review the catering
agreement. Councilmember Buckshnis recalled the finance committee held several meetings to discuss the
Waterfront Center pro forma. The catering component was the lynch pin for it being a profitable project.
She agreed the $3 lunches were part of the catering exclusivity. She reiterated the agreement was very
complicated.
Councilmember Olson as if the Senior Center objected to paragraph 1.2.2.1.b summertime and other
weekdays when Edmonds School District is not open: Mr. Fleming said the difficulty is if the room is
programmed and suddenly the School District is closed. The Senior Center would like to enter into an
operating agreement with the City to make that a possibility. In general, the Senior Center wants to be
supportive of all sorts of civic functions, but doing it via an amendment to the ground lease seems like the
wrong place and needlessly complicates the ground lease. Everyone, including the caterer, will learn an
enormous amount in the first 15 months and including that in the ground lease makes it difficult to modify.
With regard to the funding request, Mr. Fleming said none of it becomes a loan until after 2027. If the
Senior Center has not paid the City back years before then, there will be a fundamental failure with the
economy or something which is why they do not object to that provision. This has been a partnership since
the beginning and he hoped that would continue. Mr. Taraday clarified the reason paragraph 1.2.2. Lb was
phrased as "is not scheduled to be in session" is to not allow on -the -fly changes. The intent was looking at
the school calendar in advance and determining which days they would not be in session. Councilmember
Olson said that caught her attention because the priority is for Senior Center programs. There are other
properties in the City that could be used on those days.
Councilmember L. Johnson referred to the anticipated increase in the number of memberships and asked if
the cost of membership would also increase. Mr. Fleming answered Edmonds is the lowest Senior Center
in Snohomish County by far, others have increased dramatically. Edmonds Senior Center, like others,
always make exceptions for low income seniors, some of whom are living only on social security. They
either receive free membership or whatever they can manage. The cost of membership is likely to increase;
the membership committee is meeting next month to begin that discussion. He anticipated the cost of
membership would increase in 2021, but there may be classes of membership, etc.
Councilmember L. Johnson asked if the $3 subsidized lunches will continue. Mr. Fleming answered it is
currently a $3 suggested donation; the average is $1.78 which makes Edmonds the highest Senior Center
of any in Snohomish County. He assured Edmonds Senior Center wants to keep that flavor.
Councilmember Paine Section referred to paragraph 1.2.1.1 .a, and suggested the City have an opportunity
to review the catering agreement when the Senior Center reaches an agreement.
Council President Fraley-Monillas said she likes establishing clarity now. This is not just a senior center
but also a community center so there has to be give and take. She agreed it was wordy in some places,
perhaps the number of examples could be reduced as that makes it difficult to follow.
Councilmember K. Johnson referred to Mr. Fleming's comment that many of these issues would be
addressed in an operating lease and having them in a ground lease is counterproductive. An operating
Edmonds City Council Approved Minutes
March 3, 2020
Page 18
agreement may be revisited continually but the ground lease should not be revisited as long as the terms are
met. She asked if consideration had been given to a separate operating agreement and ground lease. Mr.
Taraday said that was discussed and he agreed some of the topics could have been deferred to an operating
agreement. As the City considers providing a $2M guarantee, it would be appropriate to ask for some things
that were not addressed in the original ground lease.
Deputy Parks & Recreation Director Shannon Burley said the City and the Senior Center share the same
goal to collectively serve as many citizens as possible. The Frances Anderson Center is completely full
from a programming perspective so trying to get as much usage as possible from the Waterfront Center is
how she viewed this process. The Senior Center has lower usage in the summertime so it was likely there
could be an opportunity to identify a classroom which would provide a significant opportunity for the Parks
Department to serve youth. The hours Monday — Friday 4-8 p.m. will serve an older population in addition
to the senior population. However, the availability of a classroom on the busiest days, non -school days such
as President Day, would allow scheduling of additional classes. That concept was the result of a
collaborative conversation and days could likely be agreed upon in an exchange, but this document provides
an opportunity to clarify points. With regard to the operating agreement, she believed there will be an
operating agreement that will address the finer details. Clarifying large topics such as fees, scheduling,
impacts of a catering agreement, etc. could dramatically limit the City's ability to offer those services to
youth so it is prudent to address them in the ground lease.
Councilmember L. Johnson referred to paragraph 1.2. L La "the City shall be given the opportunity to
provide input on the catering agreement before the terms are finalized," and asked what that means and
how much say does the City have. Mr. Taraday answered because there were so many unknowns about the
catering agreement, he foresaw nightmare scenarios where the catering agreement conflicted with the City's
rights to use the property. Although he has still not seen a draft of the catering agreement, he had a very
productive meeting with the caterer today and feels better now about what the caterer wants to accomplish.
Ultimately he wanted to review the catering agreement before it is executed and provide any concerns to
the Senior Center. He was not necessarily planning to bring it to the City Council due to the tight timeframe.
Councilmember L. Johnson clarified the City would have a say prior to the Senior Center executing the
catering agreement. Mr. Taraday said he contemplated that he would review the agreement, circulate it for
staff and get back to the Senior Center with comments. The City is not a party to the agreement and could
not force changes via paragraph 1.2.1.1 .a.
Mayor Nelson declared a brief recess.
Councilmember K. Johnson invited Mr. Fleming to comment. Mr. Fleming explained the Senior Center has
raised $14M, the total cost of the project is $16.3M and some of the funds raised will be collected over a
five year period so some financing is needed to carry that over. The State grant will not be released until
the State has assurance that the Senior Center has the full amount, which is less than $16.3M because the
State does not allow inclusion of the fundraising costs. Usually when a non-profit undertakes a capital
project, they have a basic form of collateral that banks recognize as valuable, the land. In talking with banks
about financing, that fundamental collateral was lacking. The Senior Center is hoping they use very little
of the line of credit but the State needs assurance that all the funds have been secured via cash, pledges, or
financing before they will release the $4M and the Senior Center can continue with construction. He
reiterated if the Senior Center cannot pay the amount back in seven years, something awful has happened
that everyone is coping with. The City owns the land as a result of work done by the City and the Senior
Center 50 years ago; the Senior Center secured a $350,000 grant and the City provided a 25% local match.
There has been a long process of give and take with the goal of benefitting seniors and the community.
Council President Fraley-Monillas asked whether the rates were fixed. Mr. James answered yes. The term
sheets are not binding documents, they are provided primarily for discussion. If the Council approves the
Edmonds City Council Approved Minutes
March 3, 2020
Page 19
use of a bank, the City will go back to the bank for the legal documents. Council President Fraley-Monillas
asked if the interest rates were fixed for the life of the loan. Mr. James answered there is only one fixed
interest rate, WaFd is fixed at 3.12% for all three options; the others vary. FFNW is CD rate plus 2%. CD
rates currently start at 1.68%, a market CD rate varies and is likely to go down. The term sheet shows a
competitive rate higher than 1.68% last week. Council President Fraley-Monillas asked if it would be a
good idea to get a fixed rate so the Senior Center knows exactly what they have to repay and it does not
fluctuate. Mr. James said he asked the banks to provide a fixed rate and none were willing to provide a
fixed rate with the exception of WaFd's three options.
Council President Fraley-Monillas referred to thrift shop revenue and asked if that includes rent of the
Westgate store and salary. Mr. Wolfe answered that is a gross figure; the rent and salary are shown in
expenses. Based on revenue for February of $20,000 annualized to $240,000, the estimated revenue of
$225,000 is very conservative. The thrift store wants to expand their hours if they find seniors willing to
volunteer in the evening. Council President Fraley-Monillas asked the rent amount and the cost of staff.
Mr. Wolfe answered the rent is $84,000/year and the cost of the staff is approximately $30,000. Council
President Fraley-Monillas asked if the additional FTE would include building engineer with experience in
LEED. Mr. Wolfe said the intent is for the building superintendent to be knowledgeable of that technology.
Councilmember Paine asked about the pledge for the Veterans Counseling Center, recalling it was
$500,000. She asked if that was included in the $1,037,000. Mr. Wolfe answered it is and it is reflected in
the $100,000/year payment of pledges over five years. Councilmember Paine asked if there were
commitments for operating expenses for the future, if the Senior Center hoped to convert some of the capital
campaign connections to operation funds. Mr. Johnson said their fundraising efforts are not just the one
time gifts but lifetime supporters.
COUNCILMEMBER DISTELHORST MOVED, SECONDED BY COUNCILMEMBER OLSON,
TO EXTEND THE MEETING UNTIL 10:30 P.M. MOTION CARRIED UNANIMOUSLY.
Mr. Johnson said the intent via engagement is to get people to feel like owners so they are happy to make
a five year pledge for capital and then continue to be involved. It is one thing to have a small number of
donors who move on, the Senior Center's strategy is to convert them to operating donors. The campaigns
he's run in the past have been successful in doing that.
Councilmember Paine asked the fundraising costs for the last two years. Mr. Wolfe estimated $200,000 for
the capital and operating campaigns which includes costs associated with catering for fundraising events.
Councilmember Buckshnis asked how the language in the ground lease would be finalized. Mr. Taraday
anticipated he would continue working with the Senior Center's representatives on proposed changes
between now and the next full City Council meeting on March 17"'. In the meantime, any direction the
Council provides tonight or at a subsequent meeting will be incorporated into the next draft. He said it was
conceivable there may be multiple drafts at the next City Council meeting. The Senior Center hopes the
Council will take action on March 17t".
Councilmember Buckshnis asked if consideration had been given to an inter -local agreement and work on
the ground lease later. She agreed some of the topics should be addressed in an operating agreement. Mr.
Taraday said he was happy to take whatever direction the City Council provides. It does not matter what
the document was called, what matters are the substantive terms. The Senior Center is not a government
entity so an inter -local agreement would not be appropriate.
Councilmember Buckshnis thanked Mr. Wolfe for the footnotes in the pro forma. She said line 33 in the
pro forma shows borrowing $2M at 3% commercial rates to be repaid over 7 years or $354,000/year. She
Edmonds City Council Approved Minutes
March 3; 2020
Page 20
commented FFNW is the cheapest and they did the PFD's loan, Cashmere is out of consideration due to 5
floating basis points.
Councilmember Buckshnis referred to the pro forma rental income, rates, dates, etc. and asked how that
was determined. Mr. Wolfe answered he prepared that and JGL, the catering consultant, did an independent
calculation and the numbers were nearly identical. He used Mukilteo's Rosehill Community Center and the
Edmonds Yacht Club and in developing a percentage of the 150 dates, he used 70%. He has been checking
the Rosehill website monthly and they are close to 100% rented. The numbers related to rental are quite
conservative at 70%. The City of Mukilteo reports rental revenue from Rosehill of $500,000/year. The
Waterfront Center is a better facility and a better location. Councilmember Buckshnis referenced the
projected rental revenue of $350,000 for the Waterfront Center and Rosehill's revenue of over $500,000.
Councilmember L. Johnson asked how much longer the lease is on the thrift store at the Westgate Center.
Mr. Fleming answered it is a three year lease; the thrift store has been there one year and a couple months.
Mr. Johnson said they are in the process of renewing the lease for five years. Councilmember L. Johnson
referred to the comment that revenues have increased significantly with better foot traffic. She asked if the
number would change if the thrift store did not remain in that location. Mr. Wolfe said it was originally
anticipated that the thrift store would move back to the Waterfront Center in 2022. Based on the numbers
and the opportunity to extend the lease for five years, that location may be more advisable. That also creates
an opportunity to repurpose the space originally intended at the Waterfront Center. He summarized keeping
the thrift store at the Westgate location for another 6'/2 years and repurposing the space in the Waterfront
Center provides a better financial picture. Councilmember L. Johnson asked if the revenue from the space
at the Waterfront Center would offset the cost of rent. Mr. Wolfe answered absolutely.
Council President Fraley-Monillas looked forward to moving ahead and asked how that could be
accomplished. Mr. Taraday said his intent is to continue to work with the Senior Center representatives; the
ball is in their court with regard to proposed edits. He invited Councilmembers to provide direction tonight
about things they feel strongly about; small edits can be emailed to him and amendments can always be
proposed on March 17"' although that may be more cumbersome as the Senior Center will not have had an
opportunity for input. He preferred Council feedback tonight or the Council could hold a short special
meeting next week to provide feedback so a final draft can be provided by March 17"', provided the Senior
Center Board has also agreed to it.
COUNCILMEMBER OLSON MOVED, SECONDED BY COUNCILMEMBER K. JOHNSON,
THAT THE OVERALL CONCEPT THAT MR. TARADAY USED TO STRUCTURE THE
PAYBACK NOT HAPPENING IS ACCEPTABLE TO THE COUNCIL, ASSUMING THAT THE
$100,000 IS NOT THE WRONG AMOUNT. CARRIED (6-1) COUNCILMEMBER BUCKSHNIS
NO,
Mr. Taraday said his interpretation of the motion is the provisions drafted in the amendments to section 2
entitled Term, are generally acceptable to the City Council and no major changes are needed. The other
parts of the document are not subject to that motion.
COUNCILMEMBER OLSON MOVED, SECONDED BY COUNCIL PRESIDENT FRALEY-
MONILLAS, THAT THE GENERAL GUIDANCE FOR MR. TARADAY IS THAT THE COUNCIL
MIGHT CHOOSE TO BE LESS INVOLVED THAN THE DOCUMENTS PRESENTS TODAY IN
THE SECTION REGARDING CATERING.
Councilmember Olson commented there are a lot of specifics about the catering contract and she felt that
was above and beyond what should be included in the ground lease.
Edmonds City Council Approved Minutes
March 3, 2020
Page 21
With regard to the motion, Councilmember Distelhorst suggested only to the extent it did not limit the
issues raised by Ms. Burley regarding programming especially for youth on the second floor which he felt
was a very valid topic to address in this agreement.
Councilmember Buckshnis raised a point of order that this was a presentations, not an action item. Mayor
Nelson ruled the motion could continue.
Councilmember Olson said the intent was to provide general guidance to Mr. Taraday.
Councilmember Paine preferred specificity, commenting in the absence of specificity, it is basically a jump
ball.
Councilmember L. Johnson commented there is a lot of information to digest. It was her understanding this
was a presentation and she was not in a place to approve parts of the document. She would not support the
motion as she needed time to think about it.
Councilmember Olson clarified the intent of the motion was not to remove the paragraphs completely but
to provide guidance to Mr. Taraday that the Council was moving in the direction of less involvement.
Council President Fraley-Monillas suggested Mr. Taraday had heard the Council concerns. Mr. Taraday
said he has heard individual Councilmember's concerns but did not know how the Council as a body feels
other than the motion that was approved.
Councilmember Buckshnis commented the Council received this at 7 p.m. tonight. None of the
Councilmembers have read it thoroughly and it is now 10:20 p.m. This is a serious thing with the Senior
Center, and although it is time sensitive, the Council needs to have adequate time to read the document.
She suggest it go to a committee so there is have time to read and digest it before making very important
decisions.
COUNCILMEMBER OLSON WITHDREW THE MOTION WITH AGREEMENT OF SECOND.
Council President Fraley-Monillas asked when Mr. Taraday needed to have input from the Council. Mr.
Taraday suggested having a short special Council meeting next week to provide him direction to draft the
ground lease. That gives him and the Senior Center a couple days to complete the final draft before the
packet is due for the March 17' meeting.
COUNCIL PRESIDENT FRALEY-MONILLAS MOVED, SECONDED BY COUNCILMEMBER
DISTELHORST, THAT THE COUNCIL MEET NEXT WEEK BEFORE COMMITTEE
MEETINGS AND ATTEMPT TO FINISH THE DRAFT GROUND LEASE. MOTION CARRIED
UNANIMOUSLY.
8. ACTION ITEMS
1. RESOLUTION ADOPTING COUNCIL RULES OF PROCEDURE AND UPDATING THE
COUNCIL CODE OF CONDUCT
This item was removed from the agenda via action in Agenda Item 4
ORDINANCE AMENDING THE EDMONDS COMMUNITY DEVELOPMENT CODE TO
ADD "HOTEL" AS A PERMITTED USE IN THE CW ZONE
Due to the late hour, this item will be rescheduled.
Edmonds City Council Approved Minutes
March 3, 2020
Page 22
9. MAYOR'S COMMENTS
Mayor Nelson spoke about the coronavirus; the City is currently taking active measures to prepare for the
COVID-19 outbreak including planning for all contingencies to protect the health and safety of citizens,
city staff and to ensure critical city functions remain operational during this outbreak. The city has
distributed evidence -based guidelines to mitigate the spread of the virus, updated the city's website with
specific guidance for businesses, employers, schools and childcare providers, healthcare providers,
community organizations, elder care, etc. provided by the Snohomish Health District, the lead agency in
the county's response to the outbreak. Today city staff distributed posters created by the Health District to
City buildings with public access as well as businesses throughout the city. The city has shared up-to-date,
reliable public health advisories. There are a lot of good people planning, preparing and taking action behind
the scenes. In the days and weeks to come, this community will likely be tested. It is essential to share
accurate information, look out for one another, plan for the impacts and be prepared. There is a lot of
information available, some of it is unreliable. He encouraged the public to use the sources of information
used in the past such as Edmondswa.gov where there is a coronavirus tab with links to information from
the Health District. The Health District's information is from the Center for Disease Control (CDC) and the
State Health Department.
10. COUNCIL COMMENTS
Student Rep Bauder extended his condolences to those affected by the coronavirus in the Kirkland area,
Seattle and the world. His school canceled some trips, may cancel school for several weeks and is preparing
for online teaching. In the meantime, he encouraged everyone to wash their hands and cover their cough.
Councilmember Olson invited anyone interested in celebrating International Women's Day on March 8 to
sign up on Eventbrite for the Ladies Who Brunch Networking event at 190 Sunset, organized by Alicia
Crank. In recognition of International Women's Day, she thanked the women in the past who fought for
rights and equality, the most precious of which is the right to vote which she encouraged people to do as
soon as possible after Super Tuesday results are in and by the March l I' deadline.
Councilmember L. Johnson thanked Mayor Nelson and the administration for developing an up-to-date
plan with critical information on the coronavirus and where to get more information. She reiterate the
recommendation to wash your hands and stay home if you are sick.
Council President Fraley-Monillas said she is forwarding Health District emails as she receives them. She
was invited to last night's press conference with the newest information on coronavirus. King County will
have a press release tomorrow afternoon and Snohomish County will follow. She relayed the following
recommendations: wash your hands; keep your hands away from your face including your nose, eyes and
mouth; clean and disinfect surfaces to include light switches, counters, doorknobs, phones, and TV remotes;
cover your mouth when coughing and sneezing; if you feel sick or have a cough, stay home; and if you feel
sick, call your doctor, do not go to an emergency room unless you absolutely have to. A vaccine is being
developed but the results are uncertain and it may take up to 1'/2-2 years to develop a vaccine.
Council President Fraley-Monillas invited Councilmembers to email her if they wanted to participate in the
public art in Civic Park process. She thanked Councilmembers who responded to her request to volunteer
for the court.
Councilmember Distelhorst said in addition to the health issues raised by Councilmembers, he encouraged
the public to consider supporting community businesses that may be unfairly impacted by the coronavirus.
Edmonds City Council Approved Minutes
March 3, 2020
Page 23
Councilmember K. Johnson reported in addition to the judge's stakeholder group, there is an extended
stakeholder group that she paniei a�ted_in last ear. Anyone that is interested in that subject can get on the
mailing list and attend their quarterly meetings.
Councilmember Buckshnis said pollen issues were causing her to cough.
11. ADJOURN
With no further business, the Council meeting was adjourned at 10:29 p.m.
MICHAEL NELSON, MAYOR SCOTT PASSEY, CITY CLERK
Edmonds City Council Approved Minutes
March 3, 2020
Page 24
Councilmember K. Johnson reported in addition to the judge's stakeholder group, there is an extended
stakeholder group that she participated in last year. Anyone that is interested in that subject can get on the
mailing list and attend their quarterly meetings.
Councilmember Buckshnis said pollen issues were causing her to cough.
11. ADJOURN
With no further business, the Council meeting was adjourned at 10:29 p.m.
MICH L NELSON, MAYOR
SC1T-4SSEI , I� 7Y CLERK{
Edmonds City Council Approved Minutes
March 3, 2020
Page 24
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