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HomeMy WebLinkAboutSigned Minutes Retreat 04-10-21Minutes of the Arlington City Council Retreat Council Chambers 110 East Third Street Saturday, April 10, 2021 Councilmembers Present: Mike Hopson, Marilyn Oertle, Debora Nelson, Don Vanney, Jan Schuette, Jesica Stickles and Michele Blythe. Council Members Absent: None. Staff Present: Mayor Barb Tolbert, Paul Ellis, James Trefry, Sarah Lopez, Kristin Garcia, Bryan Terry, Jim Kelly, Dave Kraski, Marc Hayes, Dave Ryan, City Attorney Steve Peiffle, and Wendy Van Der Meersche. Also Known to be Present: Heather Logan City Attorney / Facilitator Steve Peiffle, began the retreat with an overview and process explanation. At his request, each councilmember stated their expectations of the retreat. Mr. Peiffle introduced City Administrator Paul Ellis. Mr. Ellis stated that a shooting occurred early this morning, and distributed a press release. AGENDA ITEMS FROM POWERPOINT PRESENTATION - NO ACTION WAS TAKEN Strategic Priorities and Objectives City Administrator Paul Ellis reviewed the City's priorities and objectives, which outlines each department's projects and status of their completion. Discussion followed with Mr. Ellis answering Council questions. 2022 Budget Modifications Finance Director Kristin Garcia reviewed Assumptions from the General Fund. 2022 Budget Modifications and Revenue 2022 Budget Modifications - Revenue Assumptions Modified revenue reduction = $2.3 million • Property tax levy reduction to $.75 • 2021 levy rate is $1.34 • 2022 revenues projected to be $2.6 million from $4.4 million • Fire related grants/donations • Removed EMS contribution toward debt service • Fee for service revenue reductions • EMS - accounting/admin cost allocation • Fire services to the Airport Page 1 of 11 Minutes of the City of Arlington City Council Retreat April 10, 2021 2022 Budget Modifications - Revenue Assumptions 2022 2022 Taxes Licenses/Permits Intergovernmental Charges for Services Fines/Forfeits Miscellaneous Transfers Total Adopted Budget 14,439,914 303,552 618,725 1,956,239 172,900 81,550 1,159,782 18,732,662 Modified Budget 12,652,564 303,552 593,725 1,577,591 172,900 80,450 1,004,900 16,385,682 2022 Budget Modifications - Expense Assumptions Modified expense reduction = $2.1 million • Reinstate 2 unfilled positions • Communications • M&O • Removed fire department budget • Increase in police department costs • Jail costs • Dispatch services 2022 Budget Modifications - Expense Assumptions 2022 2022 Adopted Budget Modified Budget Legislative 213,394 213,394 Executive 1,241,509 1,334,009 Memberships 132,200 132,200 Finance 1,244,154 1,244,154 Legal 85,000 85,000 Personnel 255,098 255,098 Information Tech. 524,531 524,531 Police 8,298,322 8,665,748 Fire 2,652,862 0 Other/Misc. 114,472 114,472 CED 1,949,280 1,949,280 Debt 1,201,192 1,201,192 Transfers 1,877,551 1,957,551 Total 19,789,565 17,676,629 2022 Budget Modifications Summary • Revenue reduction of $2.3 million • Expense reduction of $2.1 million • Fund balance maintained at approximately 1.5 months of operating expenses Page 2 of 11 Minutes of the City of Arlington City Council Retreat April 10. 2021 • Ending fund balance original 2022 budget = $2.33 million • Ending fund balance modified 2022 budget = $2.10 million Discussion followed with Ms. Garcia answering Council questions. Fire Annexation - Review of Financial Obligations Finance Director Kristin Garcia reviewed the Fire Annexation financial obligations. Fire Annexation Revenue Summary • The ambulance utility fee will end 8/1/2021 • August through December 2021= $641,000 • Arlington EMS levy will end on 1/1/2022 • 2022 Arlington EMS levy is $1,050,509 and is replaced with NCRFA EMS Levy • All transport revenues, district contracts and GEMT revenues will be collected for services up to 7/31/2021 • Arlington general property tax levy will be reduced in 2022 Summary of Financial Obligations • 2021 August - December remaining Fire/EMS budgets • Paid the second Monday of each month • Rough estimate $550,000 per month • Employee leave Calculate balances as of 7/31/2021 • Paid by 12/31/2021 • Currently about $500,000 Reserve contribution • Paid by 5/31/2022 • $1,000,000 Sales Tax Information Finance Director Kristin Garcia reviewed the Fire Annexation financial obligations. • Sales Tax Overview Total sales tax revenues grew by 70% or $2,613,391 comparing 2015 to 2020 YEAR 2015 3,749,211 2016 4,063,512 2017 4,348,275 2018 4,859,068 2019 5,802,663 2020 6,362,602 Page 3 of 11 Minutes of the City of Arlington City Council Retreat April 10, 2021 • Sales Tax Overview Of the 70% overall growth in revenue between 2015 and 2020, retail sales tax represented 47% of the growth and construction sales tax represented 37% of the growth, YEAR R9TAiL cowmu o 2015 2,018,412 352,800 2016 2,175,842 498,757 2017 2,335,849 565,934 2018 2,659,049 549,203 2019 2,908,740 1,190,165 7�7n 3744, 130 7 27a 774 $ Change 1,235,727 976,425 • Sales Tax Overview The remaining 16% of overall growth in sales tax revenues came from the following categories combined. Manufacturing - 2015 95,156 898,093 242,432 142,318 2016 83,258 880,932 270,013 154,710 2017 105,237 932,457 302,347 106,509 2018 133,786 1,037,950 313,515 165,565 2019 120,287 1,138,148 336,584 188,739 2020 95,337 1,152,465 336,960 194,476 $ Change 180 254,373 94,528 52,158 * Cascade Industrial Center (CIC) will increase this over time * Other is wireless/cable/phone companies, agriculture and transportation • 2020 Lodging Tax Grant Carry Over • Grants awarded in 2020 were allowed to carryover unspent funds to be applied toward the event in 2021 • Of the 15 grant awards, 4 are complete the rest requested unspent funds be carried over • If all events with unspent funds occur in 2021, the expected grant carryover to be paid out is $110,000 • What if the event isn't held in 2021? Page 4 of 11 Minutes of the City of Arlington City Council Retreat April 10. 2021 • Carryover unspent portion into 2022? • Grantee will need to reapply in 2022 as anew grant? Staff Recommendation: Applicants reapply for new grant 2022. Discussion followed with Ms. Garcia answering Council questions. American Rescue Plan Mayor Tolbert reviewed the American Rescue Plan. • Expected Timing of Payments • Distribution will be through the State • Expected distribution between $3.7 - $4.4 million • Unknown if payments will be "lump sum" or reimbursement based • If lump sum, distributions expected in two installments • First installment by June 9th • Second installment twelve months after first payment *Guidance from MRSC as of 3/17/2021; waiting official guidance from Treasury • Qualifying Expenses • Funds available for qualifying expenses through 12/31/2024 • Qualifying expenses; • Respond to public health emergency caused by COVID-19 • Provide economic assistance to households, small businesses and nonprofits impacted by COVID-19 • To aid impacted industries such as tourism, travel and hospitality • Hazard pay • Revenue recapture for providing government services (lost revenue) • Investments in water, sewer or broadband *Guidance from MRSC as of 3/17/2021; waiting official guidance from Treasury. • Human Services American Rescue Plan Funds o Regional Approach- Snohomish County to local level o Flexibility for agencies o Research greatest needs ■ Mental Health ■ Mortgage assistance Build resiliency into money going out/ wrap -around services o Businesses o Community members North County Human Services Providers Group • Needs Assessment: Mental Health Services • Few mental health providers • Difficulty finding appointments (especially for youth) Page 5 of 11 Minutes of the City of Arlington City Council Retreat April 10. 2021 • Group will now be managed by Volunteers of America - Lynsey Gagnon • Monthly Meetings going forward Mental Health Social Worker Program • 2 year pilot program • State funded • Social worker with paid interns • Referrals from city departments (fire, police, code enforcement) of citizens who have need for services Discussion followed with Mayor Tolbert answering Council questions. Parks and Recreation Master Plan Update City Administrator Paul Ellis reviewed the Parks and Recreation Master Plan Update. • Current in-house plan needs update (2016-2023) • Requesting professional guidance with consultant, estimated at $100,000-$150,000 (including review of park mitigation fees) • 5 year to 20 year plan (short and long range) • Strategy for funding of Parks and Recreation • Review level of service (location, type and amount of park facilities Parks Funding Sources • LTGO bonds: Limited tax general obligation (LTGO) bonds, issued by vote of council. General fund revenues must be pledged to pay the debt. • Park impact fees: Must be used for publicly owned parks, open space and recreation facilities addressed in the Comp Plan. Fees charged to new housing. • RCO grants: WA Recreation & Conservation Office grants, generally every other year, and matching funds required. • REET 1: Real estate excise taxes (BEET), City tax for capital projects and limited maintenance. Park Impact/Mitigation Fees • Used for publicly owned parks, opens space and recreation facilities • Address in capital facilities element of Comprehensive Plan • Identify deficiencies in public facilities serving existing development and means to eliminate deficiencies • Identify demands placed on the existing facilities by new development • Identify need for additional facilities/ improvements • Charged to residential construction • Can be also charged to commercial or industrial developments, employees can directly benefit from nearby parks and recreation facilities Page 6 of 11 Minutes of the City of Arlington Cif Council Retreat April�2021 Opportunity for Impact / Mitigation Funds • Update Fees • Include Commercial Park Impact/Mitigation Fee Perunit single family duplex Multifamily Commercial per squareft Burlington $ 655.00 $ 655.00 $ 0.50 Mount Vernon $ 855.00 $ 789.00 no fee Marysville $ 1,328.00 $ 938.00 no fee Stanwood $ 1,330.00 $ 1,042.00 $ 1,042.00 no fee Arlington $ 1,662.00 $ 1,497.00 no fee Edmonds $ 2,734.05 $ 2,340.16 $ 1.34 Bothell $ 3,119.91 $ 1,478.80 $ 1.04 Mountlake Terrace $ 3,240.00 $ 3,242.00 $ 1.20 Brier $ 3,907.92 n/a no fee Lake Stevens S 4,154.92 $ 3,004.75 no fee Snohomish $ 4,150.00 $ 3,600.00 no fee Lynwood $ 5,553.69 $ 4,440.77 $ 3,990.33 $ 2.82 Single Family . � $ 5, 000.00 $ 4, 000.00 $ 3, 000.00 $ 2, 000.00 $1,000.$00 Ole' z qe 4� Discussion followed with Mr. Ellis answering Council questions. Council agreed that staff move forward with the Parks and Recreation Master Plan update. Community Park at Smokey Point Community and Economic Development Director reviewed a potential community park at Smokey Point. Potential Community Park/Civic Space along Smokey Point Blvd Park Acquisition - Option 1: $2.9 million Knutson property 3.56 acres • Adequate space for community park/civic space • Could be subdivided to allow for re -sale of a portion of the property Page 7 of 11 Minutes of the City of Arlington City Council Retreat April 10, 2021 • Single family residence on property which could provide income until the site is developed • 220 feet of frontage along Smokey Point Blvd requiring parking on site • Payment options lump sum or financing over 20 years at 5% interest $1.7 million park mitigation funds $1.2 million other funding An additional $2 million for park development Park Acquisition - Option 2: $1.2 million Christian Missionary Alliance Church property 2.23 acres • Approximately 680 frontage along Smokey Point Blvd allowing for street parking • Abundant parking and accessibility without loss of usable onsite area • Width could limit its ability creating a shallow, more linear design • Payment lump sum $1.2 million park mitigation funds An additional $2 million for park development Park Acquisition - Option 3: $2.3 million Combination of Option 1 and Option 2 • All of church property 2.23 acres and half of Knutson property 1.78 acres • Provides more visibility and street frontage than the church property • With the addition of the Knutson property it will allow a wider parcel to increase site functionality • Adequate room for future amenities $1.7 million park mitigation funds $600,000 other funding An additional $2 million for park development Discussion followed regarding funding, First Right of Refusal offer(s), a tie into the Parks and Recreation master plan, and a maintenance plan, with Mr. Hayes answering Council questions. Council agreed that Mr. Hayes would continue negotiations on park property. Facilities City Administrator Paul Ellis reviewed Facilities. Facilities - M & 0 / Police Impound • Completed structural engineers review of the compost facility (proposed location). • Completed programing and needs assessment in DRAFT. • Next step, complete design and project cost estimate. • Next step, complete bid documents, select contractor and construct. • Complete in 2022. Facilities - Maintenance Projects • Security system improvements City Hall. • Carpet replacement, Police Station and portions of City Hall. • Window replacement schedule City Hall. • Next steps, cost estimate to City Council. Page 8 of 11 Minutes of the City of Arlington City Council Retreat April 10 2021 Facilities - Library • Currently Library facility is owned by COA and operated by Sno-Isle. • Operations is funded by a Sno-Isle max $.50/1000 property tax residential. • Facility Maintenance is funded from COA General Fund. • Estimated $200,000 in repairs needed prior to re -opening. • Other Deferred Maintenance. • Maintenance responsibilities • City responsibilities? • Sno-Isle responsibilities? • Shared responsibilities? • Transfer all responsibilities to Sno-Isle? Discussion followed with Mr. Ellis answering Council questions. Council agreed that staff move forward. City Attorney Steve Peiffle stated an ordinance would require approval to repeal AMC 2.62, which created the Library Board. Airport Development Plan Airport Director Dave Ryan reviewed a proposed Airport Development Plan. Request: To develop a plan for the organized growth of all airport properties • Very large and complex effort that will require the services of a professional development consultant • Plan will be consistent with the City's Comprehensive Plan Update and the Airport Master Plan Update • Chart a detailed course for the future growth of the airport • Planning Window: 10 years • Planning Elements: Infrastructure - water, sewer, roadways, electrical, natural gas, stormwater, communications (telephone/fiber/wireless) • Collaborative Effort: Airport, Public Works, Community & Economic Development, and IT departments. • Budget: Airport Professional Services (consultant) Need: • Similar to developing the City's "Focus Areas" in previous Council Workshops and retreats, an Airport Development Plan will focus on what infrastructure is there, what is not and what is the best way to move forward in developing this infrastructure. • We've made major changes to the airport owned properties over the last seven years. • Many new developments on airport property or by private investment. • An Airport Development Plan will also help identify areas to ensure the "highest and best" use for any particular property. • As Snohomish County continues to grow at a very fast pace, our development plan will help us make decisions on which areas to develop first, when to develop other areas, and how to budget Airport and City resources to meet these requirements. Page 9 of 11 Minutes of the City of Arlington City Council Retreat April 10, 2021 • Additionally, an Airport Development Plan will assist us in "dove -tailing" the upcoming Airport Master Plan Update with the City's Comprehensive Plan Update. Discussion followed with Mr. Ryan answering Council questions. Council agreed that staff move forward. Council Meetings and Workshops Currently • Currently 2 Business Meetings and 2 Workshops per month. • Fifth Monday used for joint meeting. • Items Discussion • Reduce Workshops to one. • Convert second Workshop to StrateLTic Planning MeetinL_. • Larger block of time for discussing larger items. • Smaller and routine items go directly to Business Meeting. Discussion followed with Mr. Ellis answering Council questions. Council agreed for staff to move forward. The new schedule will take place in September after the summer break. Fireworks Communication and Emphasis Patrol Communication Community Revitalization and Communications Manager Sarah Lopez reviewed how the City will manage Communications regarding the ban on fireworks in the City limits, which will begin in July 2021. • Statement from City- Arlington Update May • E-newsletter and website and TV21 • Statement on utility bills • Social Media sites and Facebook groups • Homeowners Associations • Press Release • Electronic Reader Boards Promote City's Firework Display event Emphasis Patrol July 4, 2021 City Administrator Paul Ellis reviewed how the police department will manage patrol. • Supervisor 6pm to tam • Four Patrol Details 6pm to 2am • All 911 firework calls routed to supervisor. Analysis Firework related calls to Marysville increased by 188% first year of the ban. • Arlington could go from 20 firework calls to 40 calls on July 4, 2021. Page 10 of 11 Minutes of the City of Arlington Cif Council Retreat Aprl_iO Z421 Blue Line / Red Line Flags City Administrator Paul Ellis distributed memos he received from Police Chief Jonathan Ventura and from Fire Chief Dave Kraski, regarding the display of Blue Line and Red Line flags. In each memo, the Chiefs' recommendation stated that ownership should be transferred to a local community support group. Discussion followed with Mr. Ellis answering Council questions. There was a recommendation for banners to be displayed across Olympic Avenue to recognize public service weeks. Parking Lot, Wrap up and Further Action Plans The possibility of hiring an employee in the future to implement the Housing Action Plan was discussed. Amazon and the City issued press releases regarding Amazon's move to Arlington for construction of a distribution center. Mr. Ellis indicated that a statement with talking points will be provided to staff and councilmembers that will also include the status of widening 172°d Street. The topic of problems in parts of the country regarding police force was brought up. Mayor Tolbert recommended the City wait until after legislature, to see if any state laws change. ADJOURNMENT The Council Retreat was adjourned at 2:44 p.m. C �1 EQ��Barbara Tolbert, Mayor Page 11 of 11