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11/07/2005 City CouncilNovember 7, 2005 Following Committee Meetings, the Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Pro Tern Marin in the Council Chambers, 250 5th Avenue North, Edmonds. The meeting was opened with the flag salute. ELECTED OFFICIALS PRESENT Richard Marin, Mayor Pro Tern Jeff Wilson, Council President Pro Tent Michael Plunkett, Councilmember Mauni Moore, Councilmember Peggy Pritchard Olson, Councilmember Dave Orvis, Councilmember Deanna Dawson, Councilmember ELECTED OFFICIALS ABSENT Gary Haakenson, Mayor ALSO PRESENT Michael Bowker, Intern 1. APPROVAL OF AGENDA STAFF PRESENT Tom Tomberg, Fire Chief David Stern, Chief of Police Duane Bowman, Development Services Director Stephen Clifton, Community Services Director Dan Clements, Administrative Services Director Brian McIntosh, Parks & Recreation Director Jennifer Gerend, Economic Development Dir. Kathleen Junglov, Asst. Admin. Services Dir. Dave Gebert, City Engineer Jeannine Graf, Building Official Debi Humann, Human Resources Manager Sandy Chase, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder COUNCILMEMBER DAWSON MOVED, SECONDED BY COUNCILMEMBER MOORE, FOR APPROVAL OF THE AGENDA. MOTION CARRIED UNANIMOUSLY. 2. CONSENT AGENDA ITEMS Councilmember Orvis requested Item F be removed from the Consent Agenda. COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCIL PRESIDENT PRO TEM WILSON, FOR APPROVAL OF THE REMAINDER OF THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: (A) ROLL CALL Approve 1111105 (B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF NOVEMBER 1, 2005. Minutes Approve Claim (C) APPROVAL OF CLAIM CHECKS #83459 AND #83477 THROUGH #83665 FOR THE Checks WEEK OF OCTOBER 31, 2005, IN THE AMOUNT OF $623,240.26. APPROVAL OF PAYROLL DIRECT DEPOSITS AND CHECKS #42057 THROUGH #42112 FOR THE PERIOD OCTOBER 16 THROUGH OCTOBER 31, 2005, IN THE AMOUNT OF Claim for 1 $885,077.62. Damages (D) ACKNOWLEDGE RECEIPT OF CLAIM FOR DAMAGES FROM SHIRLEY BACHTEL ($294.19). Edmonds City Council Approved Minutes November 7, 2005 Page 1 orthstream (E) 30 -inch Storm Repair Findings: ITEM F: Walter Day Closed Record Appeal AUTHORIZATION TO ADVERTISE FOR STATEMENTS OF QUALIFICATION FROM CONSULTANTS FOR THE NORTHSTREAM 30 -INCH STORM REPAIR/ IMPROVEMENTS PROJECT. ADOPTION OF FINDINGS, CONCLUSIONS AND DECISION CONCERNING THE CLOSED RECORD APPEAL OF WALTER DAY OF THE HEARING EXAMINER DECISION DENYING THE APPEAL OF THE STAFF DECISION TO DISALLOW THE USE OF AN EXISTING RESIDENTIAL STRUCTURE AS A DUPLEX IN A SINGLE FAMILY ZONE. Couneilmember Dawson advised she would abstain from the vote on this item as she was not present at the Council meeting when it was discussed. Couneilmember Orvis advised he pulled this item so that he could vote no. COUNCIL PRESIDENT PRO TEM WILSON MOVED, SECONDED BY COUNCILMEMBER MOORE, FOR APPROVAL OF ITEM F. MOTION CARRIED (5 -1 -1), COUNCILMEMBER ORVIS OPPOSED AND COUNCILMEMBER DAWSON ABSTAINED. 3. FOR INFORMATION ONLY: ADDITIONAL LANGUAGE BEING CONSIDERED TO BE council ADDED TO THE EDMONDS CITY COUNCIL MEETING PROCEDURES. Meeting Procedures Mayor Pro Tem Marin explained this item was provided for information only. He stated this pertained to the issue of campaigning during Council meetings. Staff discovered State law allowed the Mayor to request that speakers not promote specific candidates during public comment. He explained the proposal would add language to the meeting procedures notifying the public of this limitation. He concluded this was added to the agenda to provide Councilmembers and citizens an opportunity to review the proposed language in preparation for discussion on December 6. He did not plan to seek approval of a resolution on December 6, only Council consensus to add this language to the meeting procedures. Bndget 4. BUDGET WORKSHOP Workshop Administrative Services Director Dan Clements recalled at the last Council meeting, staff was asked to develop a list of Council - proposed amendments to the 2006 budget. He advised the packet contained the following three General Fund amendments as well as a request from Team Edmonds for $30,000: Amount Purpose Funding Source $20,000 Marketing Budget Ending Fund Balance $ 5,000 Camera Equipment Ending Fund Balance $ 5,000 Community Notification Ending Fund Balance He advised non - General Fund amendments included the following: Amount Pur ose I Funding Source $17,000 Fire Pension LEOFF Co -Pay I Fire Insurance Premium $ 1,500 Traffic Loop Detector (SR 104 ) 1 Ending Fund Balance Mr. Clements advised Councilmembers had also discussed with him options for banked capacity as well as possible changes in the use of REST in years when REET revenues exceed projections. For Couneilmember Moore, Mr. Clements advised the $30,000 for Team Edmonds was included at the request of the Chamber of Commerce. Couneilmember Moore explained her proposal was in place of the Edmonds City Council Approved Minutes November 7, 2005 Page 2 funds provided to Team Edmonds last year, with the first $20,000 to be for professional services for Team Edmonds. She did not support funding $30,000 to Team Edmonds and preferred the funding be allocated in the manner she requested. Police Chief David Stern, President, Greater Edmonds Chamber of Commerce, advised the proposal the Chamber of Commerce made with regard to the funding request for Team Edmonds was what the Board authorized prior to Councilmember Moore's proposal. He preferred to maintain their request until the Chamber had an opportunity to consider the specifics of Councilmember Moore's proposal. He advised the Chamber Executive Director would be discussing the proposal with Councilmember Moore. Mayor Pro Tem Marin inquired of Councilmember Dawson regarding her proposed budget cuts. Councilmember Dawson explained she had concerns with the recapture of banked capacity and spending levels regardless of property tax levels. She referred to projections that revealed by 2010 the City would be in the red if the current spending levels continued and at dangerous levels prior to 2010. She remarked it was difficult with the proposed budget to identify specific items that could be cut, noting the only way would be to have each department identify items that could be eliminated if cuts were required. However, unless other Councilmembers were not interested in that information, she did not want staff to perform that exercise. She asked whether Councilmembers were interested in attempting to make serious cuts to the budget to improve fund levels and potentially reduce /eliminate the recapture of banked capacity. If any Councilmember wanted to more thoroughly review the budget, Councilmember Plunkett was supportive of engaging staff in that exercise. He acknowledged a department -by- department review had not occurred at the Council level this year. Mayor Pro Tem Marin commented he participated in three days of presentations from departments, was very comfortable with the proposed budget and was not aware of any place in the budget where major cuts could be made. Mr. Clements advised when developing the budget, his counsel was that any additional positions needed ongoing revenue or offsetting staff cuts because personnel costs were recurring costs. He noted property taxes represented approximately 40% of the General Fund budget and grew at approximately 1 % - 2% per year, whereas personnel costs grew at a rate of 5 -6% per year. The goal was to avoid the situation that occurred a few years ago that required layoffs. The City was still below 2001 -2002 staffing levels. In. considering revenue options, he explained banked capacity was determined to be the method that had the least impact on citizens. The additional positions were to address the Fire Department administrative staffing issues and form a Street Crime Unit in the Police Department. He expressed staff s willingness to enter into a more detailed discussion with the Council regarding potential cuts. Councilmember Moore summarized the Council could identify $500,000 in cuts in the 2006 budget but if they were not staff, it was not really saving the money that would be spent on new staff — people and one- time costs were not the same. Mr. Clements agreed, acknowledging non - personnel cuts could be made in 2006 and 2007; however, many of those non - personnel items were necessary to operations. Councilmember Moore observed if the intent was to cut the budget enough not to use the banked capacity, it would require cutting proposed staff as well as possibly existing staff. Mr. Clements commented it would depend on the strategy, explaining there were certain services the City was required statutorily to provide. Many of the items that the City was not required statutorily to provide were things that made this city Edmonds such as arts, parks, etc., yet the Council mission statement identified these as important to the community. He concluded it was a policy decision for the Council. Councilmember Moore relayed she was confident that the staff and Mayor developed a good budget with the participation of Mayor Pro Tem Marin. She pointed out the Mayor was a conservative fiscal manager Edmonds City Council Approved Minutes November 7, 2005 Page 3 and would not have recommended using banked capacity unless absolutely necessary. She was satisfied with the budget as proposed. Councilmember Orvis observed inflation was 2.7 %, the EMS levy was not being increased beyond the 1% and the regular property tax levy was 1% plus 3.5% in banked capacity. He noted the overall increase was 3.5% which was slightly above the 2.7% inflation rate. He noted recapturing a portion of the banked capacity this year and the remainder next year would only minimally affect the ending fund balance. Mr. Clements responded the Council did not need to do the full recapture in 2006; 2.7% could be recaptured in 2006 and the remainder in 2007. He emphasized the bottom line was that personnel costs increase faster than the revenue base. Councilmember Orvis commented on the need to keep property tax growth at inflation rates. Councilmember Plunkett commented this year's review had included little due diligence compared to past reviews; each department's budget had not been reviewed in detail which had been standard operating procedure in the past. He commented there appeared to be a suggestion that without the banked capacity, the additional police could not be funded and/or existing staff would need to be laid off when in fact the new positions could be added and no one laid off via the use of ending cash. Mr. Clements agreed ending cash could be reduced; however, that was a one -time funding source. His preference was to identify an ongoing revenue source to fund new staff. Councilmember Plunkett recalled discussions at the Finance Committee regarding early legislative activity with regard to financing. He asked whether transportation funding in the budget was predicated on actions the legislature took in the upcoming session. Mr. Clements agreed. Councilmember Plunkett suggested it may be prudent not to recapture the entire banked capacity and await action by the legislature. He asked whether the additional police could be hired with half or no banked capacity. Mr. Clements answered yes if that was the Council's direction, noting the ramifications of that decision must be considered. Councilmember Orvis suggested staff provide scenarios using different percentages of banked capacity, with and without sales tax sourcing, and with and without additional staff. Councilmember Moore commented she originally thought sales tax sourcing would be approved in this legislative session largely because a compromise had been reached. Mr. Clements advised a group of cities, Puyallup, Sumner, Auburn, Tukwila and Kent, were involved in an alternative effort. Councilmember Moore explained because the compromise was agreed to based on existing sources and not new capacity, these cities argued that if they allow any more warehouses to be built, they would not receive any additional sales tax revenue. Therefore, these cities planned to change their zoning so that no additional industrial uses could occur in the valley. Councilmember Moore commented the result would be that shipping and industry that passes through that valley would be frozen which she anticipated would lead to further negotiation by the legislature. Mr. Clements advised negotiations were occurring with regard to freight mobility and the amount of mitigation those cities would receive. He anticipated sales tax sourcing would be approved by the legislature, possibly with some changes to address the issues raised by this group of cities. Councilmember Dawson feared sales tax sourcing would not be approved this year and without that revenue, the City's financial situation looked increasingly grim. She pointed out the ending cash balance was proposed to be reduced by $500,000 even with banked capacity. Regardless of whether the City accessed bank capacity, she questioned whether now was the time to make several of the expenditures proposed in the budget such as $140,000 to update the Zoning Code when there was so much uncertainty Edmonds City Council Approved Minutes November 7, 2005 Page 4 with regard to sales tax sourcing. She acknowledged there was never a good time for some expenditures but the City's budget looked very grim right now regardless of whether banked capacity was used. Councilmember Dawson reminded the Council hiring additional police officers was not a valid reason for accessing banked capacity because, as she recalled Mayor Haakenson saying if the legislature did not approve sales tax sourcing, he did not intend to fill those positions. Mr. Clements clarified the intent was not to automatically fill those positions if the legislature did not approve sales tax sourcing but if there was sufficient sales tax, those positions may be filled. He noted that was the reason these positions were proposed to be filled mid -year. He acknowledged the last thing anyone wanted to do was to be faced with staff cuts in the future. Councilmember Dawson noted if the Council voted to access the entire banked capacity, it was not a guarantee the public safety positions would be filled because there are other factors in that decision. Mr. Clements acknowledged the validity of Councilmember Dawson's concerns, explaining those were the reasons the City supported sales tax sourcing and economic development. He pointed out the City's reliance on property tax revenue, 40% of the General Fund with growth of 11/2 - 2% with costs increasing at a higher rate. Unless sales tax revenue could be bolstered and other revenues identified, the City would always be faced with a downward trend 3 -4 years in the future. Councilmember Dawson agreed that regardless of the Council's decision on banked capacity, property taxes could not address continually increased costs. In view of the dire situation the City would be in within a few years, she preferred to consider reductions this year. Councilmember Dawson noted there were several one -time decision packages that although were good ideas, may not be strictly necessary this year when the City had a budget crisis. She questioned whether the proposed purchase of gymnastic supplies could be delayed, noting although several items were not large expenditures, they added up. She encouraged the Council to consider delaying some items. Councilmember Moore commented there was no better time to update the Zoning Code. She agreed the City's situation was dire and that was because Edmonds had been aiming to be a residential community, but now as a residential community without enough sales tax revenue, property taxes were under pressure to provide additional revenue. She noted Lynnwood did not have this problem, Mountlake Terrace solved their problem with gambling which she acknowledged was not appropriate for Edmonds. She emphasized Edmonds had to take action to get out of this cycle, noting it was not possible to reduce staff enough to get out of this cycle without impacting services. At many of the regional meetings she attended there were other cities in the same position; those who have done economic development to the fullest capacity were no longer struggling like Edmonds. She pointed out that was the reason Edmonds hired an Economic Development Director and the reason for looking at the big picture of how to develop neighborhood centers, build a strong retail base, because regardless of the action the Council took with the 2006 budget, the situation was still dire. Looking at the situation long term, the City must either build up its retail capacity monumentally or consider merging with a fiscally healthy city like Lynnwood, which she acknowledged few wanted to happen. She supported considering heavy -duty economic growth. Councilmember Moore referred to the Prosperity Partnership, explaining that group was about developing this region as a global competitor. She reiterated there were only two options, increase retail sales tax or merge with another city, otherwise the City would continue to face this situation year after year. With regard to the situation being dire, Mr. Clements acknowledged it was a situation that deserved attention, if administration was doing their job well, the projected downward trend would continue to be pushed out 3 -4 years into the future whether via cuts, additional revenue, etc. If the downward trend were occurring next year, he would agree that was dire. Councilmember Moore commented 1 -2 year planning Edmonds City Council Approved Minutes November 7, 2005 Page 5 was not good planning, she found the situation dire if it were 2, 5 or even 10 years in the future. She preferred to plan for the city's future in the next 100 years. Councilmember Dawson asked whether other Councilmembers were interested in further information from staff. Council President Pro Tern Wilson commented he was waiting to hear Councilmember Dawson's list of proposed cuts. Councilmember Dawson acknowledged although she could likely identify several one -time expenditures such as gymnastic equipment, power leaf vacuum, zoning code update, it would take further staff time to identify other, realistic cuts. Responding to Council President Pro Tern Wilson, Councilmember Dawson suggested eliminating the zoning code update, the temporary full -time building inspector, the gymnastic and basketball equipment, remote pool vacuum, and the second fingerprint machine totaled nearly $280,000, approximately the amount of the banked capacity. Although those may be good items to fund, perhaps they were not items the City had sufficient money to do this year. She commented it would be helpful to ask staff whether there were cuts they would prefer to make if that was an exercise the Council was interested in pursuing. Councilmember Olson appreciated the work done by the Finance Director and staff and was comfortable with accessing banked capacity as recommended. She noted randomly selecting items to be cut from the budget did not consider that some items may provide cost savings or that lack of equipment may impact revenue from programs. Councilmember Plunkett observed the majority of the Council was not interested in conducting further due diligence with staff. The question now was whether to proceed with budget adoption at the existing pace or slow down. He noted a decision on the banked capacity did not need to be made until the end of the month. Councilmember Moore asked Development Services Director Duane Bowman to describe why it was important to begin the zoning code update in 2006, recalling he had described the importance of updating the code on numerous previous occasions and the Council had agreed it was necessary. She noted the Zoning Code update was a necessary part of long term planning. Mr. Bowman recalled he had been talking about updating the code since his return to the City in 2000. The Council had experienced numerous issues with the existing code and it was time to address those problems. An updated code made it easier for staff to do their job, could spur quality development, etc. He pointed out the Zoning Code update was a one -time cost. The problem was ongoing costs such as adding staff which required revenue to cover those ongoing costs. For Councilmember Moore, Mr. Clements explained if the Council approved banked capacity, an ordinance would be adopted to establish the property tax for 2006. If the economy took a dramatic downturn and/or a decision were made not to hire the new staff mid -year, the property tax levy rate could be reduced the next year. Councilmember Moore commented although she was not in a hurry to adopt the property tax rate, she urged Councilmembers to think long term and not cut one -time costs. Council President Pro Tem Wilson asked whether the right to access the banked capacity had been discussed in conjunction with sales tax sourcing. Mr. Clements answered no. Council President Pro Tern Wilson observed even if the sales tax sourcing were approved by the legislature, the Council's ability to access banked capacity would continue in the future (if not accessed this year). He asked whether there was any effort at the legislature to eliminate that ability. Mr. Clement answered not at the legislature but possibly via initiative. Council President Pro Tern Wilson asked if the sales tax sourcing were approved by the legislature, when it would be effective. Mr. Clements answered the City would receive some revenue in late 2006 but the Edmonds City Council Approved Minutes November 7, 2005 Page 6 majority in 2007. Council President Pro Tem Wilson asked staff to provide a scenario illustrating the impact of using ending fund balance rather than banked capacity. Council President Pro Tem Wilson inquired about funding the temporary building inspector via outsourcing paid by the applicant. Mr. Bowman answered that could be done although it was much more expensive for the applicant - $60 -70 /hour. Building Official Jeannine Graf advised the temporary building inspector position was budgeted at $26.90 /hour. Council President Pro Tem Wilson asked whether that position typically incurred overtime. Ms. Graf answered no. Council President Pro Tem Wilson asked whether the projected workload for the temporary building inspector was sufficient for a full -time position. Ms. Graf answered not everyday; an advantage of a temporary position was the person only worked the hours he /she was needed. Council President Pro Tem Wilson summarized the position was budgeted for full -time but paid on an hourly basis. Mr. Bowman anticipated if the Esperance annexation were approved and the Pt. Edwards project continued at the current rate of development, there would be a severe demand on the existing inspection staff. As previously reported, the current inspector is doing 17 -20 inspections per day when they should only be doing 12. Council President Pro Tem Wilson inquired whether the demand would be as high if the Esperance annexation were not approved. Mr. Bowman reiterated the inspector was currently doing approximately 17 inspections per day. With the big picture and long term planning in mind, Councilmember Moore asked Economic Development Director Jennifer Gerend her vision for what economic development could add to the City's budget. Ms. Gerend answered in the short term there was the immediate benefit of sales tax from recruitment to fill current vacancies, noting those prime vacancies were far between. Looking longer term, the Council could adopt land use policies that would encourage redevelopment. She assured that did not mean high rises downtown but redevelopment in all the business districts throughout the city where redevelopment could add to those neighborhood as well as add to the sales tax and property tax revenue. Quality redevelopment not only provided opportunities for tenants who collect sales tax but it also increased the assessed value of the property which resulted in increased property tax. Ms. Gerend envisioned redevelopment of a one -story building in a neighborhood business could result in having the assessed value triple or quadruple which would generate substantially more property tax. She envisioned new development with exciting retail space and housing above, commenting it was easy for an average restaurant or good coffee house to generate $30,000 per year in sales tax to the City. Councilmember Moore referred to Community Development Director Stephen Clifton's experience in other cities and asked his vision for the City's 5 -10 year projections increasing or at least staying even. Mr. Clifton answered his vision would be similar to Ms. Gerend's, redevelopment of commercial cores such as downtown, Westgate, Five Corners, Hwy. 99 that would increase the sales tax base and result in projections that evened out. He pointed out the importance of also considering increased property tax and use taxes that various businesses collected. Councilmember Moore asked how equipment cuts affected the quality of Frances Anderson Center programs. Parks & Recreation Director Brian McIntosh answered the City was competing with other Parks & Recreation Departments as well as other businesses; when the quality decreased, participation. decreased. Councilmember Moore inquired about Mr. McIntosh's vision for parks for the next 15 years. Mr. McIntosh envisioned more parks and better maintained parks. He commented on the importance of parks and other non - tangibles as this is what draws people to Edmonds. As an example, he noted three - quarters of the pictures in real estate marketing brochures in Edmonds were of the City's parks. Edmonds City Council Approved Minutes November 7, 2005 Page 7 Councilmember Moore recalled the additional police officers in the budget would be used for a preventive crime unit. Police Chief David Stern explained all departments in the City worked together to create quality of life that the community appreciates. He relayed comments from residents who appreciate the level of service that the Edmonds Police Department provided as well as the low crime rate. He noted that was becoming an uphill battle with recent car thefts, car prowls, prostitution on Hwy. 99, small -time drug dealing, etc. The Street Crime Unit would not respond to calls for service and would be available to focus on those issues. He noted there had not been any commissioned staff added to the Police Department since 1998; the Department was reaching the point where they could no longer maintain the existing level of service with the existing staff. He anticipated if the Police Department cut their level of service, the Department as well as the Council would hear from residents. He concluded the goal was to maintain the current level of service as economically as possible. Councilmember Moore anticipated the Police Department wanted the new positions to be at least semi- permanent, to last for a few years until the problems were addressed. Chief Stern answered if Edmonds became an agency that hired staff and later laid them off, no one would want to work in Edmonds, something he emphasized needed to be guarded against. Councilmember Moore asked Fire Chief Tom Tomberg to comment on his vision for the Fire Department 50 years in the future. Chief Tomberg answered he had been employed by the City for approximately six years and every year the graph shows declining balances, the goal was to stay ahead of the curve via various methods. From a field prospective (fire stations), since there would not be any annexations of areas the Fire Department didn't already protect, there would not be a need to add any fire stations. He did not anticipate needing to add any additional firefighters on an engine or medics in a medic unit in the near term. However, the population of the community is aging and over 70% of calls are for EMS. He recalled the Council adopted a policy in 1998 that an aid unit would arrive at the scene within four minutes and a medic unit would arrive within eight minutes; the more calls increased, the more that response rate was impacted. He noted most fires in the community were residential structure fires. Edmonds was a residential firefighting department, much like other Fire Departments in the region. He referred to a discussion regarding traffic calming devices, relaying his comment that the Fire Department was about time. When there was early detection and notification and when the Fire Department had time to reach the scene, they could do a good job; anything that affected the time to reach the scene affected their ability to do a good job. Chief Tomberg summarized the field portion of the Fire Department was in good condition for the near term. However, the administrative portion of the Fire Department had been suffering for years. When cuts were made in 2003, there may have been an assumption that every department was at the optimum staffing levels; the Fire Department was not. He explained with the new administrative Battalion Chief that the Fire Department was funding from the existing budget, they would have .5 people more than they had in 1992 when the City's population and call volumes were much less. He declined to provide a vision for the next 50 years, noting he lived year -to -year. Mr. Clifton commented in a community that was so dependent on residential taxes to maintain services, it could only be sustained for a certain period. He recalled when working for the cities of Kent, Redmond and Federal Way, cities that had big box retailers, malls, large commercial areas, office parks, etc., business and industries were actively recruited to diversify the city's tax base. He noted the time had come in Edmonds to collectively do whatever possible to maximize the commercial areas. He clarified he was not referring to height limits, but rather maximizing the development of commercial areas to diversify the City's tax base as soon as possible. Councilmember Moore asked the projection for population growth over the next ten years. Mr. Clifton answered it was a few thousand. Edmonds City Council Approved Minutes November 7, 2005 Page 8 Councilmember Moore asked City Engineer Dave Gebert the status of the transportation budget this year and his hope for the future. Mr. Gebert advised the transportation budget was in severe crisis; there were insufficient revenues in Fund 112 for a viable overlay program. The overlay program with the current revenues was a 75 year cycle. The only funding in the next five years for street overlays was from utilities for streets with water /sewer replacement. He explained there was no funding projected for the next six years for citywide walkway improvements, citywide signal improvements, traffic calming, pedestrian lighting, ADA ramps, etc. Mr. Gebert summarized his vision was currently a nightmare; if some action was not taken soon to remedy the revenues in the transportation capital program, the infrastructure would be in a state of disrepair. He stressed the need to identify a recurring revenue source to fund the capital transportation program to ensure it was a viable program that provided a 30 -year overlay cycle and the ability each year to have some nominal sidewalk projects, do basic signal upgrades as signals become obsolete, meet ADA requirements, etc. Councilmember Moore remarked the City had a remarkably competent staff. She asked what happened when the City was not able to retain those jobs or provide raises. Human Resources Manager Debi Humann answered people tended to move onto other cities /jobs. She noted fortunately that had not happened but she heard from staff that they considered that when they did not get a cost of living increase or merit increase. Councilmember Moore asked whether Edmonds staff could be considered a bare bones staff. Ms. Humann answered nearly every department could be described as minimalistic. Councilmember Moore explained the reason she had asked directors to address the Council was her feeling that the Council needed to stop nitpicking the budget and think about the big picture, what the directors just provided. She questioned what the Council's vision was for the next 15 years and how to prevent living year -to -year. She suggested the Council develop a vision at the retreat as well as a strategic plan to realize the vision and stop second guessing the Mayor and staff who developed the 2006 budget. She recalled when campaigning two years ago citizens indicated they were willing to pay for things if there was a plan to back it up. She stated the Prosperity Partnership developed a very clear plan for creating 100,000 new jobs in this region in the next ten years, a plan to fix K -12 and higher education and to address freight mobility issues. She questioned where Edmonds would be when other cities were diversifying their tax sources and Edmonds was not. She was frustrated with the City continually waiting for a miracle to fix the budget every year and asked Mayor Pro Tern Marin to develop a plan for developing a vision for the City. Councilmember Dawson recalled of every dollar paid in property taxes, 17.5 cents went to the City. For the City's portion, she explained the assessed value could double but the levy amount could only be raised 1% each year. Mr. Clements clarified the base property tax could increase 1 %, property tax on new construction was in addition. He explained the City's property tax revenue increased 11/2 - 2% each year due to new construction. Mayor Pro Tern Marin urged Councilmembers with a concern about the budget to contact the individual director for further information. He noted the Council had two more meetings scheduled this month, November 15 & 22. Because Council President Pro Tem Wilson was unable to attend the November 22 meeting, he proposed canceling the November 22 meeting and scheduling a Council meeting on the fifth Tuesday, November 29. Councilmember Dawson advised she needed to confirm that would not conflict with her travel plans. Council President Pro Tern Wilson suggested the decision packages that were proposed but not funded be distributed to the Council. Edmonds City Council Approved Minutes November 7, 2005 Page 9 Council President Pro Tem Wilson explained for the past 5-7 years an average of$821,000 in REET was collected annually in Fund 125. This year$1.1 million had been collected to date and it was estimated the total would be $1.5 million by the end of 2005. As a way to address funding for Fund 112 for 2006, he suggested the Council consider allocating REET in excess of $1'million to Fund 112. He offered to provide further information for the Council's review. Councilmember Moore asked whether that shift needed to be made in the budget or if it could be made later in the year as she preferred to know what action would be taken with regard to park purchases before making that change. Mr. Clements answered it could be done now or as a quarterly budget amendment. Council President Pro Tern Wilson found it beneficial to identify some funding now for Fund 112. Councilmember Moore advised the legislature would be considering a bill to increase REET by .4% to fund transportation projects in the local jurisdiction. 5. MAYOR'S COMMENTS Mayor Pro Tern Marin referred to the allegation made last week that there was a rolling quorum, assuring nothing illegal or underhanded had occurred. He called each Councilmember to advise them that the item would be on the agenda which was not a rolling quorum. 6. COUNCIL COMMENTS Councilmember Moore noted one of the best items in the 2006 budget was funding for a City newsletter to communicate with residents. She noted the newsletter was a great alternative for residents who did not watch Channel 21 or visit the City's website. • With no further business,the Council meeting was adjourned at 8:27 p.m. All'A G• ' H•^i ENSON,MAYOR SANDRA S. CHASE, CITY CLERK Edmonds City Council Approved Minutes November 7,2005 Page 10 Mak AGENDA �.� EDMONDS CITY COUNCIL Public Safety Complex 250 5th Avenue North, Edmonds NOVEMBER 7, 2005 SPECIAL MONDAY MEETING City Council Committee Meetings The City Council Committee meetings are work sessions for the City Council and staff only. The meetings are open to the public but are not public hearings. The City Council will meet separately as committees in different meeting rooms as indicated below. (Please note the meeting time of each committee.) 1. Finance Committee- 6:00 p.m. (Meeting Location: Jury Meeting Room) A. MEBT Plan Restatement. (10 Min.) B. Third Quarter Budget Report. (15 Min.) C. Final 2005 Budget Amendment. (15 Min.) D. Non-represented Salary Ordinance. (10 Min.) 2. Community/Development Services Committee - 6:30 p.m. (Meeting Location: Council Chambers) A. Discussion on underground wiring. (20 Min.) B. Discussion on speed humps near 220th Street Project. (10 Min.) 3. Public Safety Committee-6:45 p.m. (Meeting Location: Police Training Room) A. Review of Police Towing Contracts. (10 Min.) 7:00 p.m. - City Council Meeting 7:00 p.m. - Call to Order and Flag Salute 1. Approval of Agenda 2. Consent Agenda Items A. Roll Call Page 1 of 2 CITY COUNCIL MEETING AGENDA NOVEMBER 7, 2005 B. Approval of City Council Meeting Minutes of November 1, 2005. C. Approval of claim checks #83459 and #83477 through #83665 for the week of October 31, 2005, in the amount of $623,240.26. Approval of payroll direct deposits and checks #42057 through #42112 for the period October 16 through October 31, 2005, in the amount of$885,077.62.* *Information regarding claim checks may be viewed electronically at www.ci.edmonds.wa.us. D. Acknowledge receipt of Claim for Damages from Shirley Bachtel ($294.19). E. Authorization to advertise for Statements of Qualification from consultants for the Northstream 30-inch Storm Repair/Improvements Project. F. Adoption of Findings, Conclusions and Decision concerning the Closed Record Appeal of Walter Day of the Hearing Examiner decision denying the appeal of the staff decision to disallow the use of an existing residential structure as a duplex in a single family zone. 3. ( 5 Min.) For information only: Additional language being considered to be added to the Edmonds City Council Meeting Procedures. 4. (60 Min.) Budget Workshop 5. ( 5 Min.) Mayor's Comments 6. (15 Min.) Council Comments ADJOURN Parking and meeting rooms are accessible for persons with disabilities. Please contact the City Clerk at(425) 771-0245 with 24 hours advance notice for special accommodations. Page 2 of 2