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Home My WebLink About_01-27-25 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 Don Vanney PLEDGE OF ALLEGIANCE ROLL CALL Mayor Don Vanney – Wendy APPROVAL OF THE AGENDA Mayor Pro Tem Michele Blythe INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS WORKSHOP ITEMS – NO FINAL ACTION WILL BE TAKEN 1. Emergency Declaration Pump Purchase for Haller Wellfield ATTACHMENT A Staff Presentation: Jim Kelly Council Liaison: Debora Nelson 2. November Financial Report ATTACHMENT B Staff Presentation: Kristin Garcia ADMINISTRATOR & STAFF REPORTS MAYOR’S REPORT COMMENTS FROM COUNCILMEMBERS/COUNCILMEMBER REPORTS 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 Michele Blythe / Mayor Don Vanney Arlington City Council Workshop Monday, January 27, 2025 at 6:00 pm City Council Chambers – 110 E 3rd Street City of Arlington Council Agenda Bill Item: WS #1Attachment A COUNCIL MEETING DATE: January 27, 2025 Emergency Declaration for pump replacement at Haller Wellfield Pump Tech Quote and Resolution Public Works; Jim Kelly, Director EXPENDITURES REQUESTED: $24,748.41 BUDGET CATEGORY: Water Capital Fund BUDGETED AMOUNT: $1,100,000.00 LEGAL REVIEW: DESCRIPTION: Emergency purchase to replace Pump #3A at the Haller South well field. Well #3 at the Haller South Wellfield is a very old well, it has been in service for over 100 years. The well screen has recently been letting sand enter the well and pump #3A has become sand bound. When we pulled it out to have it rebuilt, the pump technician informed us that it wasn’t worth rebuilding. Haller South Wellfield is the City’s primary drinking water source, having one of its three pumps out of service compromises the Water Treatment Plant’s ability to meet the Arlington community’s water demands. Time is of the essence as we need to have this pump installed prior to peak demand season in summer of 2025. These pumps are custom built to fit the current motor and discharge head exactly, they have an extremely long lead time to manufacture. Staff is requesting an emergency declaration to waive state bid requirements in order to get a replacement pump ordered as quickly as possible. ALTERNATIVES: Remand to staff for further consideration. Proceed through bidding process which will result in additional delays as the pump is so specific. Workshop; discussion only. At the February 3, 2025 Council meeting, the recommended motion will be, “I move to approve the resolution and authorize the Mayor to sign it.” RESOLUTION NO. 2025-XXX A RESOLUTION DECLARING AN EMERGENCY AND WAIVING COMPETITIVE BIDDING REQUIREMENTS DUE TO PENDING PUMP FAILURE AT THE HALLER WELL WHEREAS, it was discovered that a pump is failing at the Haller Wellfield in late December, 2024 that has potential to impact the health and safety of citizens; and WHEREAS, the Water Treatment Plant produces all water within the City of Arlington, and WHEREAS, the City’s investigation of the pump at the Haller Wellfield clearly show the pump in need of immediate replacement; and WHEREAS, any major failure could cause unsafe and dangerous conditions, requiring immediate action; NOW, THEREFORE, the City Council of the City of Arlington Washington does hereby resolve as follows: 1. The City Council finds an emergency condition exists which may present a real and immediate threat to the proper performance of essential functions, and potential loss or damage to property or health and safety of citizens if immediate action is not taken. Pursuant to RCW 39.04.280, the City Council waives the competitive bidding requirements for the work necessary as a result of the emergency. Approved by the City Council of the City of Arlington this 3rd day of February 2025. CITY OF ARLINGTON ___________________________ Don E. Vanney, Mayor ATTEST: ______________________________ Wendy Van Der Meersche, City Clerk APPROVED AS TO FORM: ________________________ Oskar Rey, City Attorney City of Arlington Council Agenda Bill WS #2 Attachment January 27, 2025 November 2024 Financial Report Narrative General Fund Operating Statement Revenue Charts Other Fund Operating Statements ARPA Funds Status Update Finance; Kristin Garcia, Director 360-403-3431 EXPENDITURES REQUESTED: 0 BUDGET CATEGORY: N/A BUDGETED AMOUNT: N/A LEGAL REVIEW: DESCRIPTION: ALTERNATIVES: 2024 November Financial Report – Kristin Garcia, Finance Director Sales Tax: As of November, sales tax is still trending downward about 9% and will fall short of budget for 2024. Construction (exclusive of Amazon revenue) is the biggest contributor to the decline, however retail and manufacturing are also down about 3% over last year. 2020 2021 2022 2023 2024 % change 23/24 Retail 2,949,571 3,297,396 3,421,448 3,287,378 3,190,830 -3% Construction* 1,219,219 1,178,895 1,403,473 1,399,463 795,154 -43% Services 902,980 1,050,768 1,265,943 1,326,447 1,394,124 5% Wholesale 386,312 518,567 646,211 531,241 546,424 3% Manufacturing 88,677 110,611 132,643 131,666 127,807 -3% Other 265,474 277,705 341,119 367,772 375,653 2% TOTAL 5,812,234 6,433,943 7,210,837 7,043,967 6,429,992 -9% Change 23/24 11% 12% -2% -9% *Excludes construction sales tax from Amazon project Property Tax Revenue: Second half of property tax revenues are received in November. Revenue patterns are very consistent from year to year and collectability is generally 97 – 98%. Total revenue received to date is $4.7 million and is 97% of the certified levy for 2024. $- $1,000,000.00 $2,000,000.00 $3,000,000.00 Jan Feb March April May June July August September October November Property Tax Revenues By Month 2019 2020 2021 2022 2023 2024 GENERAL FUND Criminal Justice Sales Tax: This revenue comes from a .1% sales tax for criminal justice purposes that is imposed by the County. The County keeps 10% and the remaining 90% is distributed to the County and cities on a per capita basis. The revenue has been consistently increasing since 2020. The amount of revenue received each year has been about $500,000 or more since 2022. Cable TV Utility Tax: This revenue comes from a tax on cable TV services. As people are moving toward streaming services, we will need to consider the long-term impact on revenue. I expect that this revenue will start to decline over time, similar to telephone tax, which was impacted by the move away from land lines to cell phones. Miscellaneous Revenue: Miscellaneous revenue is 51% over budget. Investment income through November was about $253,000 - $153,000 more than what was budgeted. YTD % OF YTD % OF 2024 2024 ANNUAL 2023 2023 TOTAL ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET MISC REVENUE $ 622,919 $ 411,010 151.56% $ 274,908 $ 133,025 206.66% $0$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$550,000 2019 2020 2021 2022 2023 2024 Crim. Justice Sales Tax $0$25,000$50,000$75,000$100,000$125,000$150,000$175,000$200,000$225,000$250,000 2019 2020 2021 2022 2023 2024 Cable Franchise Fees Streets Fund – By year end, the Streets Fund will likely need additional cash from the general fund. The 5th and 3rd parking lot project bid came in higher than originally anticipated. The budget for that was set back in 2022 and the full scope of work was unknown at the time . General cost increases have also occurred since the original budget was set. The Streets Fund revenue comes from fuel tax and mitigation payments from the North County Transfer Station and is not sufficient to cover all the operating costs. The general fund has historically supported the Streets Fund every year so the additional cash infusion needed this year is not out of the ordinary. In the October financial report, it was noted that finance staff would be enhancing their outreach efforts to improve collectability of utility accounts. In the month of November, those efforts paid off! The original shut off list in November was 82, due to direct calling, emails and updating customer contact information, the shut off list was reduced to 12. Staff will be continuing to evaluate out reach efforts and department procedures will be updated. Congratulations to Suzanne Soule for being elected by her peers as the 2025 Treasurer of the Snohomish County Clerk and Finance Officer’s Association! None • No upcoming agenda items. OTHER FUNDS POLICY UPDATES/OTHER INFORMATION UPCOMING COUNCIL AGENDA ITEMS DEPARTMENT UPDATES EDUCATIONAL ARPA Program Summary November 2024 Updated Budget Amount Spent to Date:Completed By: Laptops for remote work/field use $ 306 306$ Complete Touchless entry lock systems for City $ 281,318 281,318$ Complete Cold weather shelter $ 20,000 20,000$ Complete (2022 contract) Tourism Event Funding $ 89,287 89,287$ Complete Parklets $ 119,847 119,847$ Complete Utility Credit program $ 40,036 40,036$ Smokey Point Park Land $ 964,837 964,837$ Complete Winter Festival $ 220,000 239,096$ Complete Food distribution (food bank) $ 65,000 65,000$ Complete Cyber security upgrades $ 180,000 173,480$ Complete After school program/childcare (Boys & Girls Club) $ 77,000 77,000$ Complete Design/build food truck court $ 94,663 94,663$ COVID supplies $ 12,985 13,072$ Complete, over by $87 COVID Position $ 246,000 194,741$ Expenses thru 2024 Utility system security improvements $ 237,310 185,951$ adding access control to more locations Communications $ 80,000 76,659$ Contract thru 12/2024 Arlington Community Resource Center $ 360,000 211,043$ Contract thru 12/2024 NW Innovation Center $ 25,000 20,850$ Contract thru 12/2024 Cold weather shelter $ 20,000 15,735$ Contract thru 12/2024 Smokey Point Park Improvements $ 2,600,961 2,215,979$ TOTAL ARPA DIRECT ALLOCATION 5,734,550$ Reimbursement from Dept of Commerce 10,730$ FOR UTILITY CREDIT PROGRAM TOTAL FUNDS AVAILABLE TO SPEND 5,745,280$ 5,098,902$ 646,378$ Complete (10,730 of this amount came from a DOC grant so total ARPA expenses will be $5,745,280) Design stopped. Remaining amount re-purposed to Smokey Pt Park Under contract (re-allocated $1 million from Food Truck Court)