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Home My WebLink About12-05-22 Council Meeting 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. 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 State Representative David Paul Introduced by Mayor Barb Tolbert PROCLAMATIONS PUBLIC COMMENT For members of the public who wish to speak to the Council about any matter not on the Public Hearing portion of the meeting. Please limit remarks to three minutes. CONSENT AGENDA Mayor Pro Tem Jan Schuette 1. Minutes of the November 21 and November 28, 2022 Council meetings ATTACHMENT A 2. Accounts Payable: Approval of EFT Payments and Claims Checks: #106972 through #107057 dated November 22, 2022 through December 5, 2022 for $1,701,879.38. PUBLIC HEARING 1. Ordinance Amending the 2022 Budget ATTACHMENT B Staff Presentation: Kristin Garcia Council Liaison: Mayor Pro Tem Jan Schuette NEW BUSINESS 1. Ordinance Amending the Consumer Price Index Increases in the ATTACHMENT C Arlington Municipal Code Pertaining to Utility Rates Staff Presentation: Paul Ellis Council Liaison: Debora Nelson Arlington City Council Meeting Monday, December 5, 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. 2. Appointment of Pro Committee for Vote of Transportation Benefit District ATTACHMENT D Renewal Staff Presentation: Paul Ellis Council Liaison: Jan Schuette COMMENTS FROM COUNCILMEMBERS INFORMATION/ADMINISTRATOR & STAFF REPORTS MAYOR’S REPORT EXECUTIVE SESSION RECONVENE ADJOURNMENT Mayor Pro Tem Jan Schuette / Mayor Barb Tolbert DRAFT Page 1 of 3 Council Chambers 110 East 3rd Street Monday, November 21, 2022 Councilmembers Present: Don Vanney, Heather Logan, Debora Nelson, Marilyn Oertle, Jan Schuette, Michele Blythe, and Yvonne Gallardo-Van Ornam. Council Members Absent: none. Staff Present: Paul Ellis, Jonathan Ventura, James Kelly, Kris Wallace, City Attorney Steve Peiffle, Tony Orr, and Julie Petersen. Also Known to be Present: there were four guests in the audience that did not provide public comment. Mayor Pro Tem Jan Schuette called the meeting to order at 7:00 p.m., and the Pledge of Allegiance and roll call followed. APPROVAL OF THE AGENDA Councilmember Marilyn Oertle moved to approve the agenda with revision. Councilmember Debora Nelson seconded the motion, which passed with a unanimous vote. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS None. PROCLAMATIONS None. PUBLIC COMMENT None. CONSENT AGENDA Councilmember Marilyn Oertle moved and Councilmember Debora Nelson seconded the motion to approve the Consent Agenda that was unanimously carried: 1. Minutes of the November 7, 2022 and November 14, 2022 Council Meetings. 2. Approval of EFT Payments, Petty Cash Check #2020, and Claims Checks: #106869 through #106971 dated November 8th, 2022 through November 21st, 2022 for $1,721,231.42; Approval of Payroll EFT Payments and Check #30225 through #30231 dated October 1st, 2022 through October 31st, 2022 in the amount of $1,231,058.54. PUBLIC HEARING None. City Council Meeting Minutes of the City of Arlington City Council Meeting November 21, 2022 Page 2 of 3 NEW BUSINESS Resolution for WSDOT Aviation Aid Grant Funding Airport Operations Director Dave Ryan reviewed the resolution for local matching funds that are available and authorized for the proposed grant project. The cost is $385,500.00 and involves the following: design, procure, and install of a solar PV array for the Arlington Airport Admin Office Building. The request for the WSDOT grant is $250,000.00 as part of their sustainable aviation grant funding. Councilmember Michele Blythe moved and Councilmember Don Vanney seconded the motion to approve the resolution in order to apply for WSDOT grant funding for the Arlington Airport Admin Office Building Solar Project, and authorized the Mayor to sign the resolution. The motion passed unanimously. Resolution Declaring an Emergency for the Gleneagle Reservoir Roof Public Works Director Jim Kelly stated that for several years the City has tried to obtain grant funding for replacement of the Gleneagle Reservoir Roof, with those efforts not producing results. In 2020, Public Works staff budgeted for the Gleneagle Reservoir Roof replacement out of Water Utility CIP funds, and replacement efforts were moving forward. On Wednesday, November 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, the City Administrator, and the contractor who was preparing to bid on the roof replacement. With the Gleneagle Reservoir off-line until it can be repaired, the community is suffering hardship with fluctuating water pressures and limited reserve water for fire protection. Due to the urgency of this situation, staff is requesting Arlington City Council, pursuant to RCW 39.04.280(1)(e), declare an emergency situation exists and waive competitive bidding requirements, and award all necessary contracts to address the emergency situation. Mr. Kelly answered Council questions. Councilmember Debora Nelson moved and Councilmember Michele Blythe seconded the motion to adopt the resolution declaring an emergency situation with the Gleneagle Reservoir which authorizes the waiving of competitive bidding requirements necessary for the repair of the Gleneagle Reservoir, and authorized the Mayor to sign it. The motion passed unanimously. Contract with DN Tanks for Gleneagle Reservoir Roof Replacement, Phase 1 The Gleneagle Reservoir Roof was funded for replacement in the 2021-2022 budget cycle. Staff was working with BHC Consultants and DN Tanks to evaluate options for a new roof, when on Wednesday Nov 2, 2022, a portion of the Gleneagle Reservoir roof collapsed. Staff isolated the reservoir from the distribution system, coordinated with the Department of Health, worked with Council to obtain an Emergency Declaration, and worked with DN Tanks to accelerate the roof replacement work. This Council Agenda Bill contains a proposal for Phase 1 of the Gleneagle Reservoir Roof Replacement project. The first phase of this project entails demolition of the existing roof, assessment of the tank structural condition (it is 48 years old) and preparation of a report outlining replacement roof options. DN Tanks is the original contractor that constructed the Gleneagle Reservoir in 1975, and is well qualified to perform the roof replacement work. Staff is recommending Council Minutes of the City of Arlington City Council Meeting November 21, 2022 Page 3 of 3 approve Phase 1 of the DN Tanks Gleneagle Reservoir Roof Replacement proposal. Mr. Kelly answered Council questions. Councilmember Debora Nelson moved and Councilmember Marilyn Oertle seconded the motion to accept the DN Tanks proposal for the Gleneagle Reservoir Roof Replacement, Phase 1, and authorized the Mayor to sign the contract. The motion passed unanimously. COMMENTS FROM COUNCILMEMBERS Mayor Pro Tem Jan Schuette announced that she, Mayor Tolbert and staff members attended the ribbon cutting for the ice Skating rink on November 18, 2022. ADMINISTRATOR & STAFF REPORTS None. MAYOR’S REPORT None. EXECUTIVE SESSION None. ADJOURNMENT With no further business to come before the Council, the meeting was adjourned at 7:17 p.m. _________________________________________ Barbara Tolbert, Mayor DRAFT Page 1 of 2 Council Chambers 110 East 3rd Street Monday, November 28, 2022 Councilmembers Present: Don Vanney, Heather Logan, Debora Nelson, Marilyn Oertle, Jan Schuette, Michele Blythe, and Yvonne Gallardo-Van Ornam. Council Members Absent: None. Staff Present: Mayor Barb Tolbert, Paul Ellis, Kristin Garcia, Marc Hayes, Jonathan Ventura, Tony Orr, City Attorney Steve Peiffle, and Wendy Van Der Meersche. Also Known to be Present: Dave Kraski. Mayor Barb Tolbert called the meeting to order at 7:00 pm, and the Pledge of Allegiance and roll call followed. APPROVAL OF THE AGENDA Mayor Pro Tem Jan Schuette moved to approve the agenda, excluding Item No. 4, due to the illness of the Director. Councilmember Marilyn Oertle seconded the motion, which passed with a unanimous vote. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS None. WORKSHOP ITEMS – NO ACTION WAS TAKEN Ordinance Approving 2022 Budget Amendments Finance Director Kristin Garcia reviewed a worksheet detailing the proposed 2022 budget amendments. Council will be asked to take action on the budget ordinance after the public hearing December 5. Discussion followed with Ms. Garcia answering Council questions. October Financial Report Finance Director Kristin Garcia reviewed the October 2022 financial report. Discussion followed with Ms. Garcia answering Council questions. Ordinance Amending the Consumer Price Index Increases in the Arlington Municipal Code Pertaining to Utility Rates City Administrator Paul Ellis reviewed a proposed amendment to the Arlington Municipal Code (AMC) 13.12, allowing the City to reduce implementation of the 2023 mandatory water, sewer, and stormwater utility rate increases. Discussion followed with Mr. Ellis answering Council questions. Minutes of the Arlington City Council Workshop Minutes of the City of Arlington City Council Workshop November 28, 2022 Page 2 of 2 Community and Economic Development Quarterly Report Community and Economic Development Director Marc reviewed the fourth quarter report for Community and Economic Development. Discussion followed with Mr. Hayes answering Council questions. ADMINISTRATOR AND STAFF REPORTS City Administrator Paul Ellis stated that snow is in the forecast and the City is prepared. MAYOR’S REPORT Mayor Tolbert thanked Sarah Lopez, Mandy Kruger, Diane Krieg from the Chamber of Commerce, and volunteers from the Downtown Business Association, who helped make the Hometown Holidays kickoff such a great success. COMMENTS FROM COUNCILMEMBERS Councilmember Debora Nelson provided a comment regarding a snowstorm years ago. Councilmember Heather Logan provided public feedback regarding the Hometown Holidays kickoff. COUNCILMEMBER REPORTS Councilmembers had nothing to report this evening. North County Regional Fire Authority Deputy Chief Dave Kraski spoke about the upcoming Santa Run, and invited Councilmembers to participate. PUBLIC COMMENT None. REVIEW OF CONSENT AGENDA ITEMS FOR NEXT MEETING Councilmembers discussed and agreed not to put any items on the Consent Agenda for the December 5 meeting. EXECUTIVE SESSION None. ADJOURNMENT With no further business to come before the Council, the meeting was adjourned at 7:45 p.m. _________________________________________ Barbara Tolbert, Mayor City of Arlington Council Agenda Bill Item: PH #1 Attachment B 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: After the public hearing, “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: NB #1 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: 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: NB #2 Attachment D The City solicited for volunteers to participate in Pro/Con committees. Linda Byrnes and Bob Nelson responded to volunteer for the Pro Committee. There was no response for the Con Committee. purpose of neighborhood traffic calming, pavement preservation, transportation safety improvements,