Everett City Council

October 17, 2018 The regular meeting of the Everett City Council was called to order at 6: 30 p. m., October 17, 2018, in the City Council Chambers of the William E. Moore Historic City Hall, Council President Roberts presiding. Upon roll call, it was found that Mayor Franklin and Council Members Roberts, Moore, Murphy, McNeal, Bader, Stonecipher, and Tuohy were present. Members of American Heritage Girls led the Pledge of Allegiance. The minutes of the October 10, 2018, City Council meeting were approved as printed. MAYOR Mayor Franklin announced that former Library Director Mark Nesse passed away on October 14, 2018. MAYOR' S 2019 BUDGET ADDRESS October 17, 2018 Council President Roberts, City Council members, City staff and residents of Everett: Tonight I am pleased to present to you a proposed balanced budget for 2019. As you know, we began facing a $ 13 million budget gap for 2019. the year Now, we have balanced the budget for the coming year, while also reducing our ongoing deficit by more than $ 5. 6 million. I want to thank Council President Roberts, Vice President Bader, and Finance Chair Murphy for your leadership, as well as the Council as a whole, who have been a very involved in this process. Your willingness to engage in thoughtful deliberation of the difficult options we considered was critical to the progress we have made. 321  October 17, 2018 I' d like to thank our exceptional finance team, led by Susy Haugen and Rae Ann Nielsen, who have worked tirelessly and provided valuable insight and leadership to help bring the budget together. I also want to express my sincere gratitude to our entire City team, at all levels of the organization. Your thoughtful input and suggestions helped shape the budget that I am presenting tonight. Reducing the structural deficit Like communities throughout the state, Everett' s budget deficit is tied to Initiative 747 and the cap on property tax, which limits our revenue growth while our expenses continue to rise every year. The City has faced a structural deficit for 15 years, which was made worse by the Great Recession. When I took office in January, our deficit was projected to grow to $ 16. 4 million by 2020 and to nearly $ 24 million by 2022. It was clear that one- time cuts would not get us where we need to be. In February I issued a mayoral directive to address the structural deficit in a significant and sustainable way. Our goal was to make as many long- term changes as we could and ensure that our resources were aligned with the community' s priorities. From the start, this has been very collaborative process. a City team members and residents shared suggestions about how we could cut costs or realize more revenue. Our department heads also brought forward ideas for restructuring teams or changing service delivery models to reduce expenses. We also made changes on the staffing side, reducing 18 positions citywide, for a net reduction of 14. 5 positions — a total savings of$ 1. 8 million. Those were incredibly difficult choices to make, and there is still more to do. We are wrapping up assessments of several departments, and we will continue to identify areas for efficiencies and improved service delivery. And as I outlined in my directive at the beginning of the year, we must 322  October 17, 2018 explore alternative funding and delivery models for major City services, including Everett Transit, Parks, Everett Fire and the library. Everett is unlike most Washington cities in the range of services and programs we still provide — we' ll hear that again in the benchmarking presentation tonight. Most communities stopped providing these services many years ago or integrated them into regional systems. Everett maintained services, but without providing additional resources to support our growing population and changing community needs. We are projected to add another 70, 000 residents in the next 16 years. In order to effectively meet the needs of our community, we need to look at how best to provide the public safety, transportation and quality- of- life services that make Everett an incredible place to live and work. In 2019 we will begin a comprehensive and transparent review of our transit, parks, fire and library departments to identify the options available to us and how they will affect the general fund in the short- and long- term. This will allow us to expand and improve our services in a way that is more resilient and regionally connected and supports the growth and economic development that continues to come our way. Any changes to these systems will have impacts for our community members, and our analysis will provide for public participation and feedback. I will bring forward a facilitated process to assess each of these departments over the next year and a half, and provide recommendations to the City Council. Budget and City teams aligned with community priorities This budget process offered agreat opportunityy to rethink how we do pp business as an organization and to make adjustments to better achieve our goals. The 2019 budget is aligned with the priorities that we have consistently heard from our community: public safety, economic development and community engagement. 323  October 17, 2018 Protecting public safety In police and fire, Chief Templeman and Chief DeMarco have worked with their command teams to restructure and reduce their top- level positions, while adding more boots on the ground. We continue to actively recruit to fill vacancies in both departments, particularly in police, where we have seen a record number of retirements over the past two years. Our fire department has been actively working for the past several years to respond to the changing needs of our community in an efficiently and effectively. I look forward to working with Chief DeMarco and his new leadership team to ensure that we can continue to provide the highest level of service to our residents and community. Our police team, too, has shown incredible leadership in adapting and directing resources to keep our community safe. This year we have focused on reducing youth and gun violence, especially gang- related activity. Councilmember McNeal, I know this is a priority of yours, and I thank you for your passion for our youth and their safety. As I have shared previously, we recently established a new gang response unit and I am optimistic about the initial results that we have seen from our efforts this year. We are also expanding engagement between the police department and our community. This month we announced the 10 individuals who will serve as our inaugural Chief' s Community Advisory Board and provide valuable insight to Chief Templeman and the department. Investing in economic development and community engagement My 2019 budget also includes a realignment of City teams around the key priorities of economic development, including marketing and tourism, and community development and engagement. New businesses, new construction, and new visitors all represent new revenue for Everett. We have heard for many years that Everett is on the edge of a renaissance; we must invest in economic development priorities in order to achieve that growth. i 324  October 17, 2018 In May we hired Dan Eernissee as our new economic development director, and in August we established an economic development advisory committee of diverse business leaders. They are already providing valuable guidance to our City team. Councilmembers Moore and Tuohy, thank you for being a part of that group of leaders, as well as Councilmember Murphy, who is the newest member of the committee, representing the PFD. We are working with our local and regional partners on initiatives that will drive our economy, including supporting Boeing' s future growth in our city and leveraging commercial air service out of Paine Field ( many of us had the opportunity to visit the new Terminal under construction this week and I' m in awe of its beautiful design and the opportunity it will bring to our city). And we are also working with potential investors to revitalize key properties throughout the city. There are outstanding developments already underway, from Waterfront Place to Funko' s expansion downtown to the exciting new vision for the commercial center at the Riverfront. In November, the economic development team will come before the Council to share our strategic plan to build on that momentum and bring new investments and opportunities to Everett. With Council' s approval of the Metro Everett plan in August, we expect to see much of that growth take place downtown. The plan streamlines the path for investment in our urban center, and we' ll bring forward a series of related developer incentives in the coming weeks. Thank you again to our planning team, the planning commission and the City Council for the years of work that helped shape the innovative Metro Everett plan. Thank you again, for your thoughtful work on this important plan. Next spring we' ll also launch a reimagined City brand that will better position us to attract new visitors and new jobs to Everett. The launch will include a redesigned website and new tourism initiatives that capitalize on our incredible assets. Finally, we are committed to transparency and engaging with our community— and I know you all share that commitment. 325  October 17, 2018 As Everett continues to grow and change, our residents and businesses must be at the table. Strong community networks will help create the kind of city that we all want. The new community development team, which will work closely with our planning and economic development teams, brings together similar functions from throughout City, and will provide new ways for our the community members to become engaged with each other and the City. Next year we will also launch an online open data platform to provide even greater access to City information. The organizational changes we' ve made better align our teams around key community priorities, and will allow us to be more transparent with how we' re spending the resources that have been entrusted to us. Looking ahead As we near the end of 2018 and my first year in this office, I am excited about what the coming year holds for Everett. We are currently conducting national searches for two important director positions in Public Works and Human Resources, and I look forward to working with those teams to provide even better service to our community and our employees. This fall we' ll continue our work to identify the best location for the Public Works service center. However, we know the service center is not the only City building in need of attention. As Executive Director, Paul Kaftanski moves into his new role overseeing our transportation and infrastructure departments, we will begin work to identify and prioritize future upgrades to our facilities to keep our employees safe and provide the highest- level of customer service to our community. And in addition to our ongoing work on public safety, economic development and community engagement initiatives, we will also see several major City projects wrap up or get underway in 2019. 326  October 17, 2018 From the Grand Avenue Park pedestrian bridge to streetscape upgrades on Rucker Avenue to the expansion of Library Branch, our the Evergreen residents will see our crews hard at work throughout the community in the coming months. Closing As I close, I' d like to recognize our incredible City team once more. I' ve had the chance to meet with nearly every one of our employees this year, and I have been blown away by their expertise and their dedication to this community. It' s truly a privilege to lead this organization. I also want to again thank the Council for your leadership and for your significant involvement in the budget process this year. I' d especially like to thank the members of the Budget Committee — Scott Murphy, Brenda Stonecipher, and Jeff Moore — who worked so closely with our finance team for the past several months. This has been a valuable process, and I am pleased tonight that we have achieved a balanced budget that protects the core services and quality of life that our community expects. Thank you. COUNCIL Council Member Bader read into the record a joint resolution of the Everett City Council in support of Snohomish County Proposition No. 1 Emergency Communications Systems and Facilities sales and use tax. Moved by Council Member Bader, seconded by Council Member Tuohy, to adopt Resolution No. 7295, a joint resolution of the Everett City Council in support of Snohomish County Proposition No. 1 Emergency Communications Systems and Facilities sales and use tax. 327  October 17, 2018 Roll was called with all council members voting yes. Motion carried. Council Member Moore commented on the Mayor' s budget address and the transparent process for the budget this year. Council Member McNeal commented on her attendance at the open house held at Paine Field on Tuesday. Council Member Tuohy stated she also attended the Paine Field open house on Tuesday. She provided a liaison report from the Harborview Neighborhood meeting. Council Member Stonecipher asked for a briefing on the Safe Streets program. Mayor Franklin stated that staff would provide an update to Council. Council Member Murphy stated he also attended the Paine Field open house on Tuesday. Council Member Murphy read into the record a resolution of the City of Everett agreeing with conclusions of a draft supplemental environmental assessment regarding commercial air passenger service at Snohomish County Airport/ Paine Field. Moved by Council Member Murphy, seconded by Council Member McNeal to adopt Resolution No. 7296 of the City of Everett agreeing with conclusions of a draft supplemental environmental assessment regarding commercial air passenger service at Snohomish County Airport/ Paine Field. Roll was called with all council members voting yes. Motion carried. 328  October 17, 2018 President Roberts thanked the Mayor for her budget address. He stated that he and Mayor Franklin met with the Everett Housing Authority regarding the Baker Heights property. He provided a liaison report from the Delta Neighborhood meeting held Tuesday, and stated that much of the discussion revolved around future transportation impacts of the Everett Community College expansion to the east side of Broadway Avenue. President Roberts stated that he also attended the Paine Field open house on Tuesday. ADMINISTRATION UPDATE ON PRIOR BUSINESS Lyle Ryan, Administration, had no report. CITY ATTORNEY City Attorney Iles had no comments. CITIZEN COMMENTS Liz Vogeli, Everett, spoke about the last Twin Creeks- Cascade View Neighborhood meeting. COUNCIL BREIFING AGENDA: Everett Benchmarking Report Update Presented by Annie Sieger, Berk Consulting Discussion ensued regarding the overall tax burden, city- provided services, and how these services will be evaluated. Council Member Moore left Council Chambers at 7: 48 p. m. and returned at 7: 50 p. m. 329  0 October 17, 2018 COUNCIL BILL 1810- 45 FIRST READING: AN ORDINANCE levying the general taxes for the City of Everett for fiscal commencing January 1, 2019, on all year taxable property, both real and personal, subject to taxation thereon, for the purpose of raising a portion of the revenue to carry on City operations for the ensuring year, as required by the Charter of the City of Everett and the laws of the State of Washington Presented by Susy Haugen, Finance Council Member Moore spoke about the one percent annual property tax cap and return a possible repeal of the cap by legislature. Council Member Murphy requested a forecasted chart of property tax data be provided to Council in early 2019. Susy Haugen stated this would be provided as soon as it is ready since it is based on the annual report from the Snohomish County Assessor' s Office. COUNCIL BILL 1810- 46 FIRST READING: AN ORDINANCE relating to reusable bags, adding a new chapter to Title 8 EMC Presented by Flora Diaz, Legal Ms. Diaz requested Council to provide direction on specifics within the ordinance, including the span of the plastic bag ban and pass- through charges for plastic bags. Pam Kepford, Everett; Josiah Settles, Everett; Heather Trim, Seattle; Jeanine San Clemente, Snohomish; and Paula Townsell, Everett, all spoke in favor of the proposed ordinance on reusable bags. 330  October 17, 2018 Discussion ensued regarding adequate notification to citizens and businesses and the cost of notification and enforcement. Council Member Murphy suggested this item be referred to the General Government Subcommittee to discuss the particulars brought forth by Ms. Diaz in order to refine the ordinance and allow for adequate time for community notification. After concurrence from council members, President Roberts stated that this item will be discussed at the General Government Subcommittee on November 14 and brought back to Council after the questions from Ms. Diaz were answered and incorporated into the ordinance. PROPOSED ACTION ITEMS: COUNCIL BILL 1810- 40 SECOND READING: AN ORDINANCE approving the appropriations of the 2018 revised City of Everett Budget and amending Ordinance No. 3624- 18 COUNCIL BILL 1810- 41 SECOND READING: AN ORDINANCE creating Department 018 in the General Fund, entitled Communications and Marketing, to account for all transactions relating to the operations of the Communications and Marketing Department COUNCIL BILL 1810- 42 SECOND READING: AN ORDINANCE amending Department 021 in the General Fund, to be entitled Community, Planning, and Economic Development to 331  October 17, 2018 account for all transactions relating to the operations of the Community, Planning, and Economic Development Department COUNCIL BILL 1810- 43 SECOND READING: AN ORDINANCE relating to Parking, amending Section 27 of Ordinance No. 2180- 96 as amended COUNCIL BILL 1810- 44 SECOND READING: AN ORDINANCE regarding the operating hours of City Parks, amending Ordinance 3059- 08 CONSENT ITEMS: Moved by Council Member Bader, seconded by Council Member Tuohy, to approve the following consent items: RESOLUTION - CLAIMS To adopt Resolution No. 7297 acknowledging the payment of audited and approved claims against the City of Everett in the amount of 3, 343, 604. 81 for the period of September 22, 2018, through September 28, 2018. RESOLUTION — PAYROLL To adopt Resolution No. 7298 acknowledging the payment of payroll claims against the City of Everett in the amount of $ 4, 026, 518. 72 for the period ending September 29, 2018. RESOLUTION — ELECTRONIC TRANSFER CLAIMS To adopt Resolution No. 7299 acknowledging the payment of 332  October 17, 2018 electronic transfer claims against the City of Everett in the amount of 7, 265, 069. 57 for the period of August 1, 2018, through August 31, 2018. RESOLUTION — FIRE ENGINE PUMPERS SURPLUS To adopt Resolution No. 7300 declaring two Emergency- One Fire Engine Pumpers surplus and authorizing their sale. JOB COMPLETE - WEST MARINE VIEW DRIVE FREIGHT CORRIDOR IMPROVEMENTS PROJECT To accept the 41st Street to West Marine View Drive Freight Corridor Improvements project with Marshbank Construction, Inc. as complete and authorize the Mayor to sign the Certificate of Completion. AGREEMENT —APPRAISAL SERVICES To authorize the Mayor to sign the Professional Services Agreement with Valbridge Property Advisors to perform appraisal services for the City of Everett in an amount not to exceed $ 90, 000. AGREEMENT - PHIL JOHNSON BALLFIELDS RENOVATION To authorize the Mayor to sign the Washington Wildlife and Recreation Project Agreement with the Washington State Recreation and Conservation Office for Phil Johnson Ballfields Renovation. EASEMENT AGREEMENT — PUGET SOUND OUTFALL NO. 3 To authorize the Mayor to sign the Easement Agreement with Port of Everett for Puget Sound Outfall No. 3. Roll was called with all council members voting yes. Motion carried. 333  October 17, 2018 ACTION ITEMS: BID AWARD — REAL ESTATE BROKER SERVICES Moved by Council Member Bader, seconded by Council Member Moore, to award Request for Proposals # 2018- 047 Real Estate Broker Services to Lee & Associates for a two- year contract with three one- year extension options. Roll was called with all council members voting yes. Motion carried. COUNCIL BILL 1810- 39 THIRD AND FINAL READING: AN ORDINANCE granting a Telecommunications Franchise to Seattle SMSA Limited Partnership doing business as Verizon Wireless. Moved by Council Member Murphy, seconded by Council Member Bader, that this is declared to be the third and final reading of Council Bill No. 1810- 39 and the City Clerk was directed to call the roll for the final disposition of the ordinance. Kari Marino, Verizon, thanked the Mayor, Council and staff for their on this ordinance. AYES: Roberts, Moore, Murphy, McNeal, Bader, Stonecipher, Tuohy NAYS: None EXCUSED: None Ordinance No. 3625- 18 adopted. 334  October 17, 2018 AGREEMENT — WPCF FINAL EFFLUENT NORTH CHLORINATION BUILDING UPGRADE PROJECT Moved by Council Member Moore, seconded by Council Member Murphy, to award the contract for the construction of the Water Pollution Control Facility Final Effluent North Chlorination Building Upgrade Project to IMCO General Construction, Inc. in the amount of 7, 733, 718. 36, which includes Washington State sales tax. City Attorney Iles stated that the City received a bid protest, and the action would need to be amended to add a denial of the bid protest as recommended by the Legal Department, and award the contract to IMCO General Construction, Inc. No representatives of the companies were in attendance. Moved by Council Member Moore, seconded by Council Member Murphy, to deny the bid protest by Stellar J Construction and award the contract for the construction of the Water Pollution Control Facility Final Effluent North Chlorination Building Upgrade Project to IMCO General Construction, Inc. in the amount of $ 7, 733, 718. 36, which includes Washington State sales tax. Roll was called with all council members voting yes. Motion carried. AGREEMENT AMENDED — SHORELINE MASTER PLAN Moved by Council Member Tuohy, seconded by Council Member Bader, to authorize the Mayor to execute Amendment No. 1 to the Grant Agreement with the State of Washington Department of Ecology to conduct a periodic review of the City' s Shoreline Master Program. Roll was called with all council members voting yes. carried. ed. 335  October 17, 2018 GRANT AGREEMENT - STOP VIOLENCE AGAINST WOMEN FORMULA Moved by Council Member Tuohy, seconded by Council Member Stonecipher, to authorize the Mayor to sign all necessary documents and agreements with Washington State Department of Commerce regarding the application, utilization, and acceptance of the Fiscal Year 2018 Washington State STOP Violence Against Women Formula Grant in the amount of$ 32, 170. Roll was called with all council members voting yes. Motion carried. AGREEMENT - TARGET ZERO TEAMS HIGH VISIBILITY ENFORCEMENT TRAFFIC SAFETY EMPHASIS PATROLS Moved by Council Member Stonecipher, seconded by Council Member Tuohy, to authorize the Mayor to sign all necessary documents and agreements with Washington Traffic Safety Commission regarding participation in Target Zero Teams high visibility enforcement traffic safety emphasis patrols in the amount of$ 10, 100. Roll was called with all council members voting yes. Motion carried. AGREEMENT — FIRE PROTECTION AND EMERGENCY MEDICAL SERVICES Moved by Council Member McNeal, seconded by Council Member Tuohy, to authorize the Mayor to sign the Mutual Aid Agreement between Commander, Navy Region Northwest, and Snohomish County Fire Protection Agencies for the provision for fire protection and emergency medical services. 336  October 17, 2018 Roll was called with all council members voting yes. Motion carried. PUBLIC HEARING — 2019 BUDGET: President Roberts turned the meeting over to Council Member Murphy, Budget Subcommittee Chair. Council Member Murphy opened the first of three public hearings regarding the 2019 budget, which will remain open until the conclusion of the third and final budget hearing scheduled for November 7. Council Member Murphy stated that there will be a Budget Subcommittee meeting on November 7 at 5: 15 p. m. Council Member Murphy invited public comment. There was no response. The City Council meeting adjourned at 8: 44 p. m. Deputy City Cler Read and approved as printed. 2.‘ Council President 7< 337