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HomeMy WebLinkAbout11-28-22 Council WorkshopSPECIAL ACCOMMODATIONS: The City of Arlington strives to provide accessible meetings for people with disabilities. Please contact the ADA coordinator at (360) 403-3441 or 711 (TDD only) prior to the meeting date if special accommodations are required. CALL TO ORDER Mayor Barb Tolbert PLEDGE OF ALLEGIANCE ROLL CALL Mayor Barb Tolbert – Wendy APPROVAL OF THE AGENDA Mayor Pro Tem Jan Schuette INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS WORKSHOP ITEMS – NO FINAL ACTION WILL BE TAKEN 1. Ordinance Approving 2022 Budget Amendments ATTACHMENT A Staff Presentation: Kristin Garcia Council Liaison: Mayor Pro Tem Jan Schuette 2. October Financial Report ATTACHMENT B Staff Presentation: Kristin Garcia 3. Ordinance Amending the Consumer Price Index Increases in the ATTACHMENT C Arlington Municipal Code Pertaining to Utility Rates Staff Presentation: Jim Kelly Council Liaison: Debora Nelson 4. Utilities and Transportation Quarterly Report ATTACHMENT D Staff Presentation: Jim Kelly 5. Community and Economic Development Quarterly Report ATTACHMENT E Staff Presentation: Marc Hayes ADMINISTRATOR & STAFF REPORTS MAYOR’S REPORT COMMENTS FROM COUNCILMEMBERS/COUNCILMEMBER REPORTS Arlington City Council Workshop Monday, November 28, 2022 at 7:00 pm City Council Chambers – 110 E 3rd Street SPECIAL ACCOMMODATIONS: The City of Arlington strives to provide accessible meetings for people with disabilities. Please contact the ADA coordinator at (360) 403-3441 or 711 (TDD only) prior to the meeting date if special accommodations are required. PUBLIC COMMENT For members of the public who wish to speak to the Council. Please limit your remarks to three minutes. REVIEW OF CONSENT AGENDA ITEMS FOR NEXT MEETING EXECUTIVE SESSION RECONVENE ADJOURNMENT Mayor Pro Tem Jan Schuette / Mayor Barb Tolbert City of Arlington Council Agenda Bill Item: WS #1 Attachment A carryover for capital projects, 17% of the amendments are interfund transactions or transfer to reserve funds, 17% are for new capital projects previously approved by council, 7% are for plan review services and 4% are related to employee turnover. Funding sources for these expenses are non-cash transactions (transfers between funds), new permit and mitigation revenues, increased construction sales tax revenues, grants (including ARPA funds) or from accumulated reserves. A public hearing will be held on December RECOMMENDED MOTION: Workshop; discussion only. At the December 5, 2022 Council meeting, after the public hearing, the recommended motion will be, “I move to approve the ordinance amending the 2022 budget section of the 2021-2022 biennial budget for the City of Arlington, and authorize the Mayor to sign the ordinance.” 2022 BUDGET AMENDMENTS 11/28/2022 DRAFT FUND Council Approval Date Item Amendment Notes 001 - GENERAL 1/18/2022 Police Department Lateral Hiring Incentives $ 22,500 Currently no budget. Spent $17,500 through November 2022. 001 - GENERAL Finance - Leave Payout $ 25,000 Unexpected turnover in finance department. 3 positions. 001 - GENERAL Discussed with council 5/20/2022 and 7/11/2022 Transfer of Construction Sales Tax $ 4,781,489 Transfer of construction sales tax from general fund to the capital facilities fund to pay for capital investments, as per the discretionary project list included in the 2023/2024 budget. 001 - GENERAL 7/5/2022 3-D laser scanner for PD $ 45,000 Scanner will greatly enhance the ability to document and investigate accident and other crime scenes. Paid for by drug forfeiture funds. 001 - GENERAL Discussed with council September financial report Personnel Services $ 80,000 Background checks and testing due to city-wide employee turnover 001 - GENERAL Discussed with council September financial report Police Overtime $ 375,000 Higher than expected overtime due to department vacancies and hiring challenges. 001 - GENERAL Police - Fuel $ 25,000 Increase in cost of fuel since 2020 when the 2022 budget was originally developed. 001 - GENERAL Police Uniforms $ 35,000 New uniforms for new officers filling vacant position. 001 - GENERAL 2/1/2021 Snohomish County Jail Services $ 125,000 Budgeted $450,000 but the County increased prices after the budget was developed in 2020 which was previously discussed with council. 001 - GENERAL 7/19/2021 Parks Master Plan $ 56,871 Parks and recreation master plan, contract approved in 2021 but work carried over into 2022. Paid for by construction sales tax. 001 - GENERAL Approved in 2021/2022 Operating Budgets Safebuilt Contract $ 1,000,000 Plan review services - budgeted 500,000 for these services but activity is difficult to plan and exceeded initial projections. These services are paid for by permit revenues. 1 2022 BUDGET AMENDMENTS 11/28/2022 DRAFT 001 - GENERAL 5/19/2022 - council retreat Comp Plan Update $ 40,000 The comp plan update was discussed at the council retreat. The update will take place between 2022 - 2024. Budget needs to be established for 2022 as the project has started. This item has been included in the 2023/2024 biennial budget. Paid for by construction sales tax. 001 - GENERAL Approved in 2023/2024 Budget Professional services - HAPI grant $ 40,200 Grant funded (HAPI E2SHB 1923). Approved in the 2023/2024 budget but work started October 2022. 001 - GENERAL 11/15/2021 Innovation Center - Phase II $ 550,761 Moving budget from 2021. Bids were received November 2, 2021 so the majority of the project occurred in 2022. Paid for by Department of Commerce Grant. TOTAL - 001 $ 7,201,821 005 - PROGRAM DVLP 7/18/2022 Smartsheet $ 50,000 Contract management software initial implementation fee $49,738.19 - rounding for amendment purposes. TOTAL - 005 $ 50,000 006 - CED PERMITTING Transfer to General Fund $ 1,000,000 Tranfer of permit revenues to cover costs in the general fund for plan review services (Safebuilt contract - see above). TOTAL - 006 $ 1,000,000 007 - AMERICAN RESCUE PLAN 10/17/2022 Smokey Point Park Land Purchase $ 961,625 Transfer of ARPA money to the Park Improvement Fund to pay for Smokey Point Blvd Park land purchase. TOTAL - 007 $ 961,625 101 - STREETS FUND Leave Payout $ 4,043 Employee turnover in M&O deparment 101 - STREETS FUND Fuel $ 12,000 Increase in cost of fuel since 2020 when the 2022 budget was originally developed. 101 - STREETS FUND Termoplastic Program $ 60,000 Originally estimated and budgeted $60,000 but cost of materials increased and catching up some of the work that was scheduled from last year. 101 - STREETS FUND Supplies $ 16,000 Olympic Avenue crosswalk marking supplies 2 2022 BUDGET AMENDMENTS 11/28/2022 DRAFT 101 - STREETS FUND WCIA Insurance $ 8,711 WCIA property audit - covered bridge value increased significantly TOTAL - 101 $ 100,754 107 - GROWTH FUND Transfer to Trans. Improvement $ 151,500 Transfer of traffice mitigation funds to the transportation imporvement fund for the right of purchase at 197th Place NE. TOTAL - 107 $ 151,500 108 - EMS FUND Final GEMT cost report $ 30,000 When the program began, the city contracted with PCG to do the annual cost reporting for the Ground Emergency Medical Transport (GEMT) program. This cost is for the final 2021 cost report that was submitted to the WA Health Care Authority. 108 - EMS FUND Final operating expenses related to costs incurred prior to annexation $ 35,000 These cost include; medical reimbursements for overpayment of transport fees, subscriptions to medical equipment in 2021 that the the vendor invoiced late and repayment of 2019 adjusted GEMT revenues. 108 - EMS FUND Discussed with council April financial report Transfer to close out $ 390,000 Estimated fund balance at 12/31/2022. Fund will be closed and money will be transferred into the capital facilities fund TOTAL - 108 $ 455,000 111 - PUBLIC ART FUND 1/18/2022 Public Art Projects $ 78,030 Funding 15 proposals as recommended by PARC. Total expenditures expected to be $143,030, current budget = $65,000. Funded by construction sales tax. TOTAL - 111 $ 78,030 116- CEMETERY Discussed with council July financial report Salaries/Benefits $ 35,000 Original budget had a .5FTE that was shared with M&O department. Due to increasing activity at Cemetery, this positoin was moved full time to the Cemetery. 116- CEMETERY Purchase of Headstones $ 32,000 Activity more than originally projected. Paid for by headstone sales. 116- CEMETERY Discussed with council May financial report Transfer to Endowment Fund $ 25,000 This is 10% of Lot Sales. Budgeted $11,800 but more was transferred because lot sales were more than twice what was orignally budgeted. 3 2022 BUDGET AMENDMENTS 11/28/2022 DRAFT 116- CEMETERY Discussed with council June financial report Transfer to General Fund $ 96,132 2021 true up of M&O hours working at the Cemetery. Burial service activity was higher than originally projected. 116- CEMETERY Transfer to M&O Fund $ 80,000 2022 True up of M&O hours working at the Cemetery. As of October, based on the monthly hours and cost reconciliation, the Cemetery owes $53,000 more than what was budgeted. 116- CEMETERY Increase Transfer to Cemetery Capital $ 20,000 Budgeted $10,000 but fund balance is healthy enough to transfer an additional amount to the cemetery capital fund. TOTAL - 116 $ 288,132 180 - Transportation Sales Tax Approved in 2021/2022 budget Smokey Point Blvd Overlay $ 135,934 Budget carryover from 2021. Project was budgeted in 2021 but carried over into 2022 due to contractor issues. 180 - Transportation Sales Tax Consultant Services $ 53,100 Pavement condition assessment for renewal of transportation sale tax. TOTAL - 180 $ 189,034 305 - CAPITAL FACILITIES Discussed with council April financial report Transfer to EMS Fund $ 40,380 Transfer to EMS fund for cash flow to make final operation payment to NCRFA as part of annexation agreement. Budgeted amount was $500,000 but actual transfer was $540,380. Will be paid back when EMS fund in closed at year end. 305 - CAPITAL FACILITIES Discussed with council June financial report Transfer Fiber Installation Budget $ 163,001 Fiber installation was originally budgeted in the REET 1 fund but fiber isn't in the city's compreshensive plan so REET funds can't be used. This will move the budget from REET 1 fund to Capital Facilities Fund. 305 - CAPITAL FACILITIES 10/11/2021 Capital Facilities Needs Assessment $ 75,179 Council approved a contract with Meng Analysis to conduct a capital facility needs assessment. The majority of the work was performed in January - March of 2022. 305 - CAPITAL FACILITIES 6/1/2020 Shop/Police Impound Design $ 5,000 Architect design services for the police impound and M&O facility. Project approved by council when the 2020 bonds were issued. 305 - CAPITAL FACILITIES 6/1/2020 Professional Services to Close Out Station 48 Project $ 2,000 Architect services to close out station 48 projects. Project approved by council when 2020 bonds were issued. 305 - CAPITAL FACILITIES 5/19/2022 - council retreat Flashing Crosswalk Signs/LED Stop Signs $ 32,000 Paid for by construction sales tax. Part of capital plan reviewed at the council retreat and incorporated into the 2023/2024 budget. 4 2022 BUDGET AMENDMENTS 11/28/2022 DRAFT 305 - CAPITAL FACILITIES 5/19/2022 - council retreat Police Reader Boards $ 45,200 Paid for by construction sales tax. Part of capital plan reviewed at the council retreat and incorporated into the 2023/2024 budget. TOTAL - 305 $ 362,760 310 - TRANS.IMP Approved in previous budgets 2019-2021 Budget Carryover - Complete Streets Project $ 487,802 Project was budgeted 2019 - 2021 but delayed. This will carryover unused budget from previous years. Paid for by Dept of Commerce Grant. 310 - TRANS.IMP 8/1/2022 Right of Way Purchase - 197th Place NE $ 151,500 Paid for by traffic mitigation fees. TOTAL - 310 $ 639,302 311 - PARK.IMP 10/17/2022 Smokey Point Park Land Purchase $ 961,625 ARPA money transferred into Park Fund. Purchase will be expensesed in the Park Fund. 311 - PARK.IMP 4/18/2022 Haller Park Shelter $ 50,000 Funded by grant from Snohomish County. TOTAL - 311 $ 1,011,625 402 - AIRPORT 3/7/2022 Airport Intern $ 34,000 Reinstatement of intern position. Estimated annual salary/benefits for a full time position is $66,680. The position was filled on 7/13/2022. 402 - AIRPORT Increase Transfer to Airport Reserves $ 500,000 Current budget has $388,000 to transfer into airport reserve fund however the fund balance is over $1.5 million so more can be transferred into reserve. The reserve fund is used to help pay for future capital projects. 402 - AIRPORT Fuel $ 10,000 Increase in cost of fuel since 2020 when the 2022 budget was originally developed. TOTAL - 402 $ 544,000 403 - WATER Fuel $ 5,000 Increase in cost of fuel since 2020 when the 2022 budget was originally developed. 403 - WATER PW previously discussed with council Water Meter Inventory $ 30,000 Increased new connections required more meter purchases. 5 2022 BUDGET AMENDMENTS 11/28/2022 DRAFT 403 - WATER WCIA Insurance $ 20,731 Increase in valuations resulted in a premium increase more than budgeted. 403 - WATER PUD Water $ 100,000 Hot dry weather required an increase of water purchased from PUD. TOTAL - 403 $ 155,731 404 - SEWER Fuel $ 20,000 Increase in cost of fuel since 2020 when the 2022 budget was originally developed and fuel for generator during power outage. 404 - SEWER Professional Services $ 10,000 increased SCADA work at WWTP. 404 - SEWER Rent to Airport for Compost Facility $ 46,752 Was not originally budgeted as the plan was for M&O to move into that facility however PW has been and will continue to use this site. TOTAL - 404 $ 76,752 406 - SEWER IMP Approved in the 2021 budget Water Reclamation Facility Equalizing Basin Project $ 1,350,000 Project was budgeted in 2021 budget but the majority of work was done in 2022 due to supply chain issues. TOTAL - 406 1,350,000$ 412 - STORM Fuel $ 5,000 Increase in cost of fuel since 2020 when the 2022 budget was originally developed and fuel for vactor trucks. 412 - STORM WCIA Insurance $ 5,200 2022 premium increase over budgted amount. TOTAL - 412 10,200$ 504 - M&O Leave Payout 16,011$ Leave payout due to employee turnover. 504 - M&O Overtime 70,000$ Cemetery, snow response, limited DOC work crews, seasonal hiring challenges, community event support and staff turnover. 504 - M&O Fuel 12,000$ Increase in cost of fuel since 2020 when the 2022 budget was originally developed. 504 - M&O Professional Services 25,000$ Unplanned projects, staff turnover, limited seasonal staff. 6 2022 BUDGET AMENDMENTS 11/28/2022 DRAFT 504 - M&O WCIA Insurance 4,600$ Premium increase based on more worker hours than projected. 504 - M&O Operating Supplies 8,000$ janitorial supplies, parks/facilties supplies, splash pad. General cost increases 504 - M&O Shop Supplies 5,000$ PPE, oil, grease, vehicle soap. TOTAL - 504 140,611$ 622 - Cemetery Pre Need Purchase of Liners 3,000$ More pre-purchased liners than budgeted. Paid by customers. TOTAL - 622 3,000$ SUB TOTAL GENERAL FUND 7,201,821$ SUB TOTAL ALL OTHER FUNDS 7,568,056$ GRAND TOTAL ALL AMENDMENTS 14,769,877$ 7 ORDINANCE NO. 2022-039 AN ORDINANCE AMENDING ORDINANCE 2020-029 WHICH ADOPTED THE 2021-2022 BIENNIAL BUDGET OF THE CITY OF ARLINGTON BY PROVIDING SUPPLEMENT THERETO AND PROVIDING TRANSFER AND ADJUSTMENT AUTHORITY FOR CALENDAR YEAR 2022 WHEREAS, staff has identified the need to make certain revisions to the 2021-2022 Biennial Budget that were not foreseen when Ordinance No. 2020-029 was adopted on November 17, 2020, and WHEREAS, this ordinance was introduced with proper notice and citizens have been given the opportunity to comment, and WHEREAS, because this will require increasing the appropriation level in one or more funds, an amendment is needed, NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ARLINGTON WASHINGTON AS FOLLOWS; Section 1. Pursuant to RCW 35A.34, the 2022 Budget section of the 2021-2022 biennial budget is hereby amended to provide for adjustments to expenditures, and by providing authority for any necessary transfers of money within or between funds as indicated in the “Amendment” column on the attached document Exhibit A. Section 2. That the attached is a summary of the amended budget for the year 2022 for the City of Arlington and that copies of the detailed amended budget are available to any interested taxpayer at the Finance Department, City Hall, Arlington, Washington. Section 3. This ordinance shall be in full force and effect five days after its passage and publication of a summary consisting of the ordinance title hereof as authorized by law. Passed by the City Council and APPROVED by the Mayor this 5th day of December, 2022. CITY OF ARLINGTON _______________________________ Barbara Tolbert, Mayor ATTEST: ___________________________________ Wendy Van Der Meersche, City Clerk APPROVED AS TO FORM: ____________________________________ Steven J. Peiffle, City Attorney EXHIBIT A 2022 BUDGET MODIFICATIONS - ALL FUNDS 2022 MODIFIED BUDGET 12/6/21 AMENDMENTS AMENDED BUDGET 12/5/22 GENERAL FUND 18,337,057$ 7,201,821$ 25,538,878$ GENERAL FUND MANDATORY RESERVE FUND - - PROGRAM DEVELOPMENT FUND - 50,000 50,000 CED PERMITTING FUND 2,500,000 1,000,000 3,500,000 AMERICAN RESCUE PLAN 1,076,310 961,625 2,037,935 STREETS MAINTENANCE FUND 1,136,280 100,754 1,237,034 SOCIAL SERVICES FUND 5,000 5,000 GROWTH FUND 3,063,926 151,500 3,215,426 EMERGENCY MEDICAL SERVICES FUND 1,070,620 455,000 1,525,620 PUBLIC ART 67,500 78,030 145,530 LODGING TAX FUND 157,115 157,115 CEMETERY FUND 240,861 288,132 528,993 TRANSPORTATION SALES TAX FUND 1,545,500 189,034 1,734,534 REET 1 FUND 422,638 422,638 REET 2 FUND 227,550 227,550 CAPITAL FACILITIES/BUILDING FUND 500,000 362,760 862,760 BOND CONSTRUCTION FUND 1,400,000 1,400,000 TRANSPORTATION IMPROVEMENT FUND 5,906,300 639,302 6,545,602 PARK IMPROVEMENT 980 1,011,625 1,012,605 LIBRARY CAPITAL IMPROVEMENT FUND - - CEMETERY CAPITAL IMPROVEMENTS FUND - - EQUIPMENT REPLACEMENT FUND 4,237,474 4,237,474 AIRPORT FUND 4,517,903 544,000 5,061,903 WATER FUND 3,858,896 155,731 4,014,627 SEWER FUND 5,858,077 76,752 5,934,829 WATER IMPROVEMENT FUND 4,580,000 4,580,000 SEWER IMPROVEMENT FUND 5,338,904 1,350,000 6,688,904 STORM WATER CIP FUND 720,000 720,000 AIRPORT RESERVE FUND 350,000 350,000 WATER/SEWER BOND RESERVE FUND - - STORMWATER MANAGEMENT FUND 1,041,307 10,200 1,051,507 AIRPORT CIP 3,310,110 3,310,110 MAINTENANCE & OPERATIONS FUND 1,872,387 140,611 2,012,998 CEMETERY PRE-NEED TRUST FUND 2,400 3,000 5,400 CITY FIDUCIARY FUNDS 137,000 137,000 CEMETERY ENDOWMENT FUND - - - - GRAND TOTAL ALL FUNDS 73,482,095$ 14,769,877$ 88,251,972$ City of Arlington Council Agenda Bill Item: WS #2 Attachment B General Fund Operating Statement Revenue Charts Other Fund Operating Statements ARPA Program Summary October 2022 Totals:Spent to Date:Completed By: Laptops for remote work/field use $ 5,000 306$ Complete 1 full time employee to perform custodial and cleaning of public spaces $ 246,000 56,579$ Expenses thru 2024 or until exhausted Touchless entry lock systems for City $ 261,000 269,510$ Complete by 9/2022 Replenish Personal Protective Equipment (PPE) stock $ 12,985 8,237$ ongoing thru 2024 as needed Cold weather shelter $ 20,000 20,000$ Complete by 12/2022 Cyber security upgrades $ 94,000 55,961$ Complete by 12/2022 Utility system security improvements $ 237,310 14,494$ Complete by 12/2023 Design/build food truck park $ 1,366,625 120$ Design 2022, construction 2023 Food distribution (food bank) $ 60,000 In discussions Workforce development (partner with County) $ 25,000 Complete by 12/2023 Tourism event funding (similar to Lodging Tax Advisory Committee) $ 150,000 84,493$ Complete by 12/2022 Winter festival funding/Legion Park Electrical Upgrades $ 200,000 82,558$ Complete by 12/2022 Chamber of Commerce (possible partner for communications position) $ 150,000 20,384$ Contract thru 12/2022 Purchase parklets for more outdoor eating spaces $ 150,000 119,847$ Complete Arlington Community Resource Center $ 360,000 50,756$ Contract thru 12/2024 Utility Credit program $ 280,907 29,306$ Phase 1 complete NW Innovation Center $ 25,000 3,475$ Contract thru 12/2024 After school program/childcare (Boys & Girls Club) $ 77,000 In discussions Smokey Point Park Land $ 1,000,000 48,000$ In negotiations Smokey Point Park Improvements $ 1,013,723 RFP for design issued 7/2022 TOTAL ARPA BUDGET 5,734,550$ 864,025$ City of Arlington Council Agenda Bill Item: WS #3 Attachment C Bellevue area. The current October to October CPI is 8.9%, this is an unusually high CPI that could be ALTERNATIVES: Remand to staff for additional information. RECOMMENDED MOTION: Workshop; discussion only. At the December 5, 2022 Council meeting, the recommended motion will be, “I move to approve the ordinance reducing the scheduled 2023 CPI increase to the water, sewer, and stormwater utility rates, and authorize the Mayor to sign the ordinance.” ORDINANCE 2022-XXX 1 ORDINANCE NO. 2022-XXX AN ORDINANCE OF THE CITY OF ARLINGTON, WASHINGTON AMENDING THE CONSUMER PRICE INDEX INCREASES IN THE ARLINGTON MUNICIPAL CODE CHAPTER 13.12 PERTAINING TO UTILITY RATES WHEREAS, the City of Arlington has the authority to set rates and charges for its utility system; and WHEREAS, for many years the City has been able to defer annual CPI increases to utility rates through operational efficiencies the City of Arlington continues to examine equitable rates for water, sewer, and stormwater service; and WHEREAS, the water utility rates have not had a CPI increase since 2011, and the sewer and stormwater utility rates have not had a CPI increase since 2013the City’s municipal code contains a CPI adjustment factor which the City Council wishes to amendreduce for 2023; and WHEREAS, the City’s operational costs have increased since 2011 and a rate increase is required to keep the departments financially self-sufficient; WHEREAS, the City Council considered this amendment at their workshop on January November 28, 202210, 2022 and at their regular meeting held on January 18December 5, 2022, and determined approving the amendment was in the best interest of the City and its citizens; NOW, THEREFORE, the City Council of the City of Arlington do hereby ordain as follows: Section 1. Arlington Municipal Code Section 13.12.040 shall be and hereby is amended to read as follows: 13.12.040 - Water rates and charges. Applicable state and city utility taxes are included in the following rates and charges for water service. The total monthly water charges for every service shall include the Base Charge, and the consumption charge, as set forth below. Beginning on January 15, 2024, the rates set forth for the year 20243 shall be increased annually by the October reported percentage increase of the consumer price index (CPI) for the Seattle-Tacoma-Bremerton Bellevue area for all urban consumers, or other measure commonly used by the city should it change; and provided further, however, that notwithstanding any reduction in the CPI, rates shall not decrease. ORDINANCE 2022-XXX 2 (1) Minimum monthly Base Charge schedule: Charge By Meter 2022 INSIDE CITY RATE 2023 INSIDE CITY RATE 2023 OUTSIDE CITY RATE to (2) Monthly rate schedule charged for water consumption: Rate per 100 cubic feet 2022 INSIDE CITY RATE INSIDE CITY RATE OUTSIDE CITY RATE First 300 cf Included in Base Charge for SFR and Commercial water services only Included in Base Charge for SFR and Commercial water services only Base Charge for SFR and water services only ORDINANCE 2022-XXX 3 (3) Fair and equitable minimum rates for water consumers having meters larger than four inches shall be fixed by the city council and written agreements shall be entered with the users setting forth said rates. The city council may enter into contracts with water users deviating from such rates where special circumstances dictate; provided that, such rates shall not be discriminatory. (4) Temporary water service. Temporary water service for construction purposes, or for any other purpose temporary in nature that will not require a permanent service installation must be obtained through a Fire Hydrant Use Permit as stipulated in AMC 13.04.100(e). Charges for temporary use of water shall be as follows: Temporary Water Services Charges Equipment Rental $50.00 $2.94$3.04 $3.10$3.20 $3.10$3.20 (A) The security deposit shall be refunded to the customer after the equipment has been returned and inspected for any damages; customer shall be solely responsible for all damages. Customers shall be billed on a monthly basis for monthly equipment rental charges and usage fees from the date of temporary service installation. (B) Beginning on January 15, 20234, Tthe usage rates set forth for temporary water service shall be increased annually by the October reported percentage increase of the consumer price index (CPI) for the Seattle-Tacoma-Bellevue area for all urban consumers, or other measure commonly used by the city should it change; provided, however, that no CPI adjustment shall be made for the period from January 15, 2022 to January 14, 2023, and provided further, however, that notwithstanding any reduction in the CPI, rates shall not decrease. ORDINANCE 2022-XXX 4 Section 2. Arlington Municipal Code Section 13.12.130 shall be and hereby is amended to read as follows: 13.12.130 Residential sewer rates and charges. Applicable state and city utility taxes are included in the following rates and charges for sewer service. The total monthly sewer charges for every SFR and MFR service shall be a flat fee and not based on metered water consumption. The effective dates for the following sewer rates will be based on the city's billing cycle for use beginning on January 1, 20222023. Beginning on January 15, 2024, the rates set forth for the year 20223 shall be increased annually by the October reported percentage increase of the consumer price index (CPI) for the Seattle-Tacoma-Bremerton Bellevue area for all urban consumers, or other measure commonly used by the city should it change; provided, however, that notwithstanding any reduction in the CPI, rates shall not decrease. 2022 RATE 2023 RATE $72.43 $74.60 $55.76 $57.43 Section 3. Arlington Municipal Code Section 13.12.140 shall be and hereby is amended to read as follows: 13.12.140 Commercial sewer rates and charges. (a) All sanitary sewer services connected to any public or private premises that are defined as "Commercial classification" in Section 13.12.110 shall be charged for sanitary sewer service upon the basis of water consumption. State and city utility taxes are included in the following rates and charges for sewer service. The effective dates for the following rates will be based on the city's billing cycle for use beginning on January 1, 20222023. Each user shall pay a minimum monthly charge of one base rate plus a volume rate for all consumption over three hundred cubic feet per month. ORDINANCE 2022-XXX 5 300 cubic feet of cubic feet of metered (b) Beginning on January 15, 20232024, and on January 15th each year thereafter the rates set forth for the year 2022 2023 shall be increased annually by the October reported percentage increase of the consumer price index (CPI) for the Seattle-Tacoma- Bremerton Bellevue area for all urban consumers, or other measure commonly used by the city should it change, provided, however, that notwithstanding any reduction in the CPI, rates shall not decrease. Section 4. Arlington Municipal Code Section 13.12.150 shall be and hereby is amended to read as follows: 13.12.150 Industrial user classification and charges. The rates and charges for industrial users, as defined in Sections 13.08.240, 13.08.250, and Chapter 13.36, shall be as follows: (1) All user charges shall be based upon equitable unit charges established for flow BOD (biochemical oxygen demand) loading and TSS (total suspended solids) loading, based upon the average BOD, TSS and other parameter(s) concentrations (as established by the public works director) monitored for the industrial user and the flow recorded in the monitoring manhole or water use. (2) A minimum monthly charge will be established by the city to cover the basic sewer costs and monitoring of the industrial user's wastewater discharge, and in the event the monthly sewer bill does not exceed this amount the industrial user shall agree to pay the estimated minimum monthly charge. This charge shall be reviewed from time to time and adjusted to ensure the charge is covering the monitoring services and sewer costs provided and must be reviewed every two years. Initially, the monthly charges shall be based on the following, unless otherwise established in the negotiated discharge permit: (A) For an industrial user with waste strength less than two hundred fifty mg/1, measured as five-day BOD and TSS, and other parameters within limits established in Sections 13.08.240, 13.08.250, [and Chapter] 13.36, and whose discharge does not require regular monitoring other than flow, the minimum monthly charge is as set forth below: ORDINANCE 2022-XXX 6 Sewer Charges (monthly) 2022 RATE 2023 RATE Waste strength <250 mg/l $442.94 $456.23 (B) For an industrial user with waste strength in excess of two hundred fifty mg/l for two months or more per year, the minimum monthly charge is as set forth below: (C) Beginning January 15, 20232024, and each January 15th thereafter, the charges set forth in subsections (l)(A) and (l)(B), shall be increased annually, by the October reported percentage increase of the consumer price index (CPI) for the Seattle-Tacoma-Bremerton Bellevue area for all urban consumers, or other measure commonly used by the city should it change; provided, however, that notwithstanding any reduction in the CPI, rates shall not decrease. (3) Until such time as a sewer user charge analysis can be conducted to establish equitable charges under a negotiated discharge permit between the city and the industrial user, the following shall be used as the basis for industrial user charges: (A) Flow based charge per cubic foot of wastewater discharged; (B) BOD charge per pound of BOD discharged; and (C) TSS charge per pound of TSS discharged, pursuant to the following table: (D) Beginning January 15, 20232024, and each January 15th thereafter, the charges set forth in subsection (c), shall be increased annually, by the October reported percentage increase of the consumer price index (CPI) for the Seattle-Tacoma-Bremerton Bellevue area for all urban consumers, or other measure commonly used by the city should it change; provided, however, that notwithstanding any reduction in the CPI, rates shall not decrease. (4) Flow shall be based upon one hundred percent of the water consumption or rate of flow of wastewater discharge into the sewer (measured in an industrial user installed flow ORDINANCE 2022-XXX 7 measurement and recording equipment installed in control manhole, pursuant to Chapter 13.36). Strength of wastewater discharged shall be established based upon twenty-four-hour composite samples made by the city at the control manhole and tested by the city's wastewater treatment plant laboratory or state certified testing laboratory. All testing shall be in accordance with the latest edition of "Standard Methods for Examination of Water and Wastewater," APHA, AWWA and WPCF. BOD and TSS, pounds per day, shall be calculated based upon concentration of composite samples and established flow rates. (5) Appeal. (A) If any user believes that a portion of the user's metered flow, larger than ten percent, is not discharged into the sewer system (when flow measurement is not provided in the control manhole), the user should make written application to the public works director for review of the user's flow of wastewater. If the public works director agrees that charges for the user should be adjusted, they shall so notify the city council, which may approve such change, or direct a recomputation of the user's sewer rates. (B) If the public works director does not agree to the adjustment of user charges, the user may further appeal to the city council, which may direct further study or take other appropriate action. Section 5. Arlington Municipal Code Section 13.12.540 shall be and hereby is amended to read as follows: 13.12.540 Initial service charge rates. In accordance with the rate structure established herein, there is hereby levied upon all developed real property within the boundaries of the utility, the following service charges: (1) State and city utility taxes are included in the following rates and charges for stormwater service. See Table 3. (2) Beginning on January 15, 20234, the rates set forth for the year 20223 shall be increased annually by the October reported percentage increase of the consumer price index (CPI) for the Seattle-Tacoma-Bremerton Bellevue area for all urban consumers, or other measure commonly used by the city should it change; provided, however, that no annual increase shall exceed two percent; and provided further, that notwithstanding any reduction in the CPI, rates shall not decrease. (3) For all other developed property including multifamily, condominiums and mobile home parks within the boundaries of the utility, except as specified under Section 13.28.130, the monthly service charge shall be based on the above table (Table 3) per month multiplied by the number of equivalent service units determined by the utility to be contained ORDINANCE 2022-XXX 8 in such parcel. For all single-family property owners qualifying for the senior low-income utility discount established in Section 13.12.140, the discount shall apply to stormwater service charges. Section 6. Severability. Should any section, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this Ordinance be preempted by state or federal law or regulation, such decision or preemption shall not affect the validity of the remaining portions of this Ordinance or its application to other persons or circumstances. Section 7. Effective Date. This Ordinance or a summary thereof shall be published in the official newspaper of the City. The Ordinance shall take effect five (5) days after publication but no earlier than on the first day of the billing cycle effective January 15, 2023. PASSED BY the City Council and APPROVED by the Mayor this _____ day of December, 2022. CITY OF ARLINGTON _____________________________ Barbara Tolbert, Mayor Attest: _________________________ Wendy Van Der Meersche City Clerk Approved as to form: _________________________ Steven J. Peiffle ORDINANCE 2022-XXX 9 City Attorney City of Arlington Council Agenda Bill Item: WS #4 Attachment D . ALTERNATIVES: RECOMMENDED MOTION: Workshop; discussion only. Public Works Utilities, Transportation, Cemetery, Engineering & GIS Staffing Report - Assoc. Engineer (ENG-I) – Position still open. Recent applicant declined offer of employment. - Utility Locator – Position Approval form signed and Job Description is being finalized. - WTP Operator (WTPO-I) – Interviews have been conducted and offer extended. - PW Admin Office Rearrangement – The PW Admin office is being rearranged to accommodate new engineering positions. PW Operations 1. Grants Update – Public Works is currently working on grant/loan applications that are due in November of December 2022 for the below projects. Prairie Creek/BNSF Reapplication: Change in scope on this project is requiring the City to reapply for FEMA Hazard Mitigation Grant Gleneagle Reservoir Roof: Public Works Trust Fund Emergency Loan Program Gleneagle Reservoir Roof: FEMA Hazard Mitigation Grant Water Treatment Plant Expansion: Department of Health SRF 2. Pavement Condition Assessment –IMS Infrastructure Management Services has collected all of the field data and are processing the information, a PCI Rating report will be available in Jan 2023. 3. Cemetery Pump System and Irrigation – The new 5-hp VFD irrigation pump system has been installed and tested, it passed initial tests. Staff needs to contract condition assessment of Cemetery water distribution system as several leaks have been discovered during pump tests. Update on Current Contracts and Capital Projects 1. 169th St Connection [Design] – The City submitted for a federal grant for the design, ROW and construction of this road segment. While waiting for the grant the City funded the 30% design effort, work is being completed per federal requirements and includes survey, cultural resources, selection of a preferred alignment, preliminary ROW needs, and preliminary environmental assessment. As this 30% Phase is nearing completion, staff is negotiating Scope of Work and Fees for the 30%-60% effort. 169th Street Connection project website. 2. Broadway & Division Rehabilitation Project [Design]: The project Request for Qualification (RFQ) has been advertised and design team qualifications are due December 1, 2022. Design will start in January 2023. Broadway & Division Rehabilitation project website. 3. 67th Sewer Main Improvements [Design] – Project design is underway; the 30% design submittal is due in January 2023. 67th Ave Sewer Main Replacement website. Public Works Quarterly Report November 2022 Page 2 of 3 4. Smokey Point Blvd Corridor [Design] – City Council approved by resolution the Smokey Point Blvd Corridor roadway layout, Phase 2 of project design and public outreach has started. Due to concerns regarding the bike pathway through the Corridor, special outreach to bike groups is underway to solicit their input on the design. Smokey Point Blvd Corridor website. 5. SR-530 and Smokey Point Blvd Roundabout [Design] – Staff is working on ROW exchange with the Stillaguamish Tribe and Bureau of Indian affairs, changes necessary to federalize project and complete NEPA are being discussed with consultant. SR-530 Roundabout project website. 6. 204th St and 74th Ave Intersection [Design] – Project design is at 100% completion. Staff is continuing to work on obtaining ROW for the north side of the intersection. The property was recently sold and there are new owners. 204th St & 74th Ave Intersection website. 7. 74th Ave Trail Completion [Design] – Design is at 90% completion; 100% completion is expected in early January 2023. Staff is working on obtaining ROW and temporary construction easements. This project is scheduled for 2024 construction. 74th Ave Trail project website. 8. SR-531 Widening Project [Design] – City staff worked with WSDOT to coordinate a Core Stakeholders meeting on September 21, 2022 and a general Stakeholders meeting on November, 1, 2022. Project on schedule for Design/Build advertisement in Aug 2023. SR-531 Widening project website 9. SR-530 and 59th Ave and 211th Place Roundabouts [Design] – WSDOT is getting ready to advertise construction of these roundabouts in January 2023 with construction being completed by late summer 2023. SR-530 and 59th Ave & 211th Place Roundabouts project website. 10. Gleneagle Reservoir Upgrades [Planning] – On Wednesday Nov 2, 2022 a portion of the Gleneagle Reservoir Roof collapsed. Public Works staff responded quickly taking the Gleneagle Reservoir out of service, reporting the reservoir roof collapse to the Department of Health, City Administrator and the contractor who was preparing to bid on the roof replacement. Staff is currently working on solutions for repair as soon as possible. 11. Haller Well South Expansion [Design] – Public Works and City Executive staff met to look at final placement of two new wells as recommended by hydrogeologist (Mott-McDaniel), the spacing did not work well with a single building as planned so preliminary layout is being reconfigured into several small wellhouse buildings. The drilling of two new 36-inch diameter potable water wells is scheduled for February 2023. Haller Wellfield South project webpage. 12. Water Treatment Expansion Project [Design] – The 30% design package is nearing completion, we are awaiting for Department of Health to approve Engineering Report. Staff is working with BHC on Scope & Fee for final design package (30% to 100%). The old WTP asbestos has been abated and is being prepped for demolition in January 2023. Staff is also working with PUD to underground OH electric service to utility plant. Water Treatment Plant Expansion project website. 13. 520 Booster Pump Station [Design] – The 30% design package, consisting of the Project Engineering Report, hydraulic modeling and water distribution layout, is complete and approved by the Department of Health. Staff is working with RH2 on Scope & Fee for the Final Design (30% to 100%). 14. 2023 Utility and Pavement Preservation [Design] – The City is under contract with Parametrix and design of the 2023 UPP is moving forward. 2023 UPP project website Public Works Quarterly Report November 2022 Page 3 of 3 15. 2022 Utility and Pavement Preservation [Construction] – Pavement preservation is complete and water main installation will start in December 2022. 2022 UPP project webpage. 16. SR-531/40th Ave Intersection [Construction] – Project is complete and operational and going through close-out. SR-531/40th Ave Intersection project website. 17. SR-531/43rd Ave Roundabout [Construction] – This Developer Project is complete and operational. 18. EQ Basin and Digested Sludge Pump Project [Construction] – Project is nearing completion. Staff is developing a punch-list of outstanding items and it is anticipated a letter of Substantial Completion will be issued in December 2022. Water Reclamation Facility Modifications project website. 19. Membrane Replacement & Optimization [Construction] – Membrane replacement is complete, staff is working on system optimization. Water Reclamation Facility Modifications project website. 20. Water Rights – The Hammer water right Record of Examination is being evaluated by City Water Rights attorney prior to submittal to Department of Ecology. 21. South CIC Utilities [Construction]– Part IA of this project is complete and in-lieu connection fee reimbursement is being coordinated with BYK, Part IB is complete and going through close-out; and staff is working with Murraysmith to finish Part 2. South CIC Utilities project webpage. 22. Haller Well North Expansion [Planning] – In negotiations with Haller North Wellfield property owner for possible purchase of new well site property. Challenges 1. Staffing/workload 2. Inability to obtain materials for construction 3. Transportation, Water, Sewer and Storm long range funding Opportunities & New Programs 1. TBD Renewal for 2023 and beyond City of Arlington Council Agenda Bill Item: WS #5 Attachment E ALTERNATIVES: RECOMMENDED MOTION: Workshop; discussion only. Community and Economic Development Quarterly Status Report Reporting Period: Q4 2022 Staffing Report: • At long last, there is finally some bright light on the staffing horizon. We have made an offer of employment to an individual for the Planner II position, who will begin employment at the beginning of the new year. An introduction and bio will be given once he has been onboarded. Also, we will be interviewing 2 applicants next week for the Development Services Manager position, so hopefully we will fill our two vacant positions before the end of the year. Update on Current Contracts/Grants: • CED continues to meet bi-weekly with Otak, the prime consultant for the 2024 Comprehensive Plan Periodic Update. Otak will be giving a presentation at a joint meeting between City Council and Planning Commission on January 23, 2023. Remember, you can always click the link below to access the webpage that will provide ongoing Comp Plan work product, beginning with the public outreach process for the 2024 update. At the bottom of the webpage is the link for the COMMUNITY SURVEY. Please take a moment to fill it out. https://www.arlingtonwa.gov/784/Comprehensive-Plan-Update-2024 • FCS Group continues to work on the baseline Market/Economic Analysis, Financial Forecasting, and finalizing the boundaries of the Tax Increment Financing area, They are currently reviewing the City’s CIP’s, and the City’s Growth and Land Use assumptions. • Otak has been given their Notice to Proceed and is now working on finalizing the conceptual design of the Food Truck Court. Civil engineering work will begin as soon as the final design has been produced. • WA Department of Commerce has offered a grant opportunity for partial re- imbursement of funds expended in the periodic update of the 2024 Comprehensive Plan. Cities with a population between 3,000 – 49,999 are eligible for $124,000.00, split between 2022 and 2023. Application has been submitted. Challenges: • Continuing to review/permit the backlog of projects, currently in the que. Opportunities: • Santa’s Elves (CED staff) will be handing out candy canes with 2024 comp plan information at the Santa parade on December 3rd. This is part of our public outreach to try and solicit more community involvement in the CP update process. New Programs/General Information Meetings: • CED met with representatives from Snohomish County Public Works to discuss proposed development of their existing site located at 19620 67th Ave. Proposed improvements to include, new administration bldg., utility upgrades, material storage building improvements and contaminated soils remediation. • CED met with representatives from Stella-Jones, who are installing updated electrical control equipment for their existing treatment operations. • CED met with a developer that is proposing the construction of two 89,000 s.f. manufacturing/industrial buildings to be located at 3505 188th St. • CED met with a developer that is proposing to construct a 24-unit apartment building at 106 E Haller St. This site currently has a vacant two story SFR that has been the site for numerous homeless habitation and arson complaints. • CED has met with several property owners that are looking at options for re- development of their existing properties. • CED met with the representatives of Providence Heights who are purchasing the Wyndham Hotel. Providence Heights is a not-for-profit organization that develops women’s integrated well-being, provides training for career acceleration and entrepreneurial skills with the objective of providing sustainability for the people it serves. All participants receive a life coach who teaches multiple life skills, self-assessment, spiritual guidance, financial, business, and entrepreneurial seminars and guidance. The program requires residency at PH during a participant’s completion of the program, including accommodating their minor children. Current Development Activity – Please refer to the graph below showing the steadily increasing development/permitting activity in CED from 2017 to 2022. Upcoming Planning Commission Items: 1. Upcoming Council Items: 1. Joint workshop meeting with Planning Commission-Otak presentation