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10/28/2003 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES October 28, 2003 Following a Special Meeting at 6:40 p.m. for an Executive Session regarding a legal matter, the Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Haakenson in the Council Chambers, 250 5th Avenue North, Edmonds. The meeting was opened with the flag salute. ELECTED OFFICIALS PRESENT . Gary Haakenson, Mayor Dave Earling, Council President Jeff Wilson, Councilmember Michael Plunkett, Councilmember Lora Petso, Councilmember Dave Orvis, Councilmember Richard Marin, Councilmember Deanna Dawson, Councilmember 1. APPROVAL OF AGENDA STAFF PRESENT David Stern, Chief of Police Dan Clements, Administrative Services Director Jim Larson, Assistant Admin. Services Director Arvilla Ohlde, Parks and Recreation Director Darrell Smith, Traffic Engineer Scott James, Accountant Debra Sharp, Accounting Assistant Scott Snyder, City Attorney Sandy Chase, City Clerk Lawrence Cretin, Video Recorder Jeannie Dines, Recorder COUNCILMEMBER MARIN MOVED, SECONDED BY COUNCILMEMBER ORVIS, FOR APPROVAL OF THE AGENDA. MOTION CARRIED UNANIMOUSLY. 2. CONSENT AGENDA ITEMS Councilmember Marin requested Item E be removed from the Consent Agenda. COUNCILMEMBER MARIN MOVED, SECONDED BY COUNCILMEMBER ORVIS, FOR APPROVAL OF THE REMAINDER OF THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: (A) ROLL CALL Approve Minute0s3 (B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF OCTOBER 21, 2003. Approve (C) APPROVAL OF CLAIM CHECKS #66225 THROUGH #66362 FOR THE WEEK OF Claim OCTOBER 20, 2003, IN THE AMOUNT OF $206,775.93. Checks Liquor (D) APPROVAL OF LIST OF EDMONDS BUSINESSES APPLYING FOR RENEWAL OF Control LIQUOR LICENSES WITH THE WASHINGTON STATE LIQUOR CONTROL BOARD. Board and Capital (F) BOND CAPITAL PROJECTS UPDATE. Projects (G) AUTHORIZATION TO ADVERTISE FOR STATEMENTS OF QUALIFICATION FROM Interurban I CONSULTANTS FOR THE DESIGN OF THE INTERURBAN TRAIL PROJECT (228TH rail Project STREET SW TO SR 104). Edmonds City Council Approved Minutes October 28, 2003 Page 1 1 UD Grant Item E: Prioritization of HUD Grant Pro*ects and Authorization of Resolution to Submit Grant Application ojects for 2004 Snohomish County CDBG Capital Program Councilmember Marin advised he was on the Snohomish County body that would rule on the grants and would therefore abstain from the vote. COUNCILMEMBER ORVIS MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, FOR APPROVAL OF ITEM E. MOTION CARRIED (6 -0 -1), COUNCILMEMBER MARIN ABSTAINED. The item approved is as follows: (E) PRIORITIZATION OF HUD GRANT PROJECTS AND AUTHORIZATION OF RESOLUTION NO. 1049 TO SUBMIT GRANT APPLICATION FOR 2004 SNOHOMISH COUNTY CDBG CAPITAL PROGRAM 3. CEMETERY BOARD ANNUAL REPORT emetery oard Report Greg Sarvis, Edmonds Cemetery Board, commented on the amicability of the Cemetery Board, noting they usually voted unanimously on most decisions following much discussion. He extended the Board's thanks to the City for its continuing commitment to provide a Cemetery Sexton. Mr. Sarvis explained the Edmonds Memorial Cemetery was not General Fund operated, it was operated using fees charged for services. He commended the Mayor and Council for their foresight, specifically lauding their attendance and participation at the Memorial Day ceremony. He recognized the assistance of liaisons Parks & Recreation Director Arvilla Ohlde and Parks Maintenance Supervisor Rich Lindsey. Mr. Sarvis explained the expense of the private well continued to be a negligible cost and freed up funds from the sales of lots and related items. As recommended by the Washington State Department of Ecology, a water probe was installed and water levels are monitored monthly. He noted the Cemetery Sexton, Cliff Edwards, has received numerous compliments regarding the beauty of the cemetery, particularly notable this year due to the extremely dry weather conditions. Mr. Sarvis described the completion of the pyramidalis planting on the southern border of the cemetery to define the cemetery boundary and conceal the businesses to the south. The cemetery's webpage continues to be improved and he welcomed any suggestions. He described this year's Memorial Day program which honored the Navy, explaining each year a flag was purchased representing the branch of service that was honored. He recognized several individuals and groups for their assistance in preparing for the Memorial Day program. He anticipated the use of a youth group in 2004 for other preparatory planting and cleanup projects. Mr. Sarvis described the cemetery's annual Walk Back in Time and plans for a columbarium structure in the northeast corner of the cemetery. He described the process for design and development of the columbarium, advising the plans would be presented to the Council on December 2. He anticipated ground breaking in March with completion by late May 2004. The financial return was anticipated to be at a ratio of 4:1 income versus expense. Phase 1 will include approximately $271,000 in improvements; with additional improvements, income projections should be in excess of $1 million. Mr. Sarvis concluded by thanking Mayor Haakenson and the City Council for their continuing support. 4. AUDIENCE COMMENTS Lid Lift Ron Wambolt, 504 6t'' Avenue S, Edmonds, objected to statements that the proposed levy lid lift of 22 %, Proposition 1, would exclusively fund police and fire services, noting the statement was a scare Edmonds City Council Approved Minutes October 28, 2003 Page 2 tactic to gain voter support. The 22% increase in the Edmonds portion of the property taxes was needed to keep other City services funded. He asserted that if the levy lid lift did not pass, the Mayor and Council would be forced to more closely consider the City's entire budget and reprioritize funding to essential services like police and fire. He cited employee costs as the most logical place to begin cutting, noting benefit dollars were growing 15 -20% each year. He pointed out that non - governmental organizations were not absorbing increases in benefit costs but were reducing pensions and medical reimbursements as well as increasing payment by employees. Temporary pay cuts are common place in non - government organizations, and City workers should no longer remain immune from such actions. He did not plan to support Proposition 1 as he felt it was excessive. He challenged the Enterprise's statement that the levy lid lift would be $76 per year on a home with an assessed value of $200,000, alleging the cost would be $102 per year. He envisioned it would cost the average taxpayer nearly $200 more per year as most assessed values were in excess of $200,000, pointing out the County, State and School District likely would also be seeking increases. Recent increases in appraised values would further increase a home's total taxes. He found it regretful that the Voters Pamphlet did not contain a statement against Proposition 1, noting the statement was only solicited at a Council meeting which provided prospective authors of a statement little notice that a statement was needed. Public Natalie Shippen, 1022 Euclid Avenue, Edmonds, stated in May she requested a cost estimate for the Disclosure construction of the Edmonds Crossing project which Mayor Haakenson refused to provide. She hired an Act attorney who informed the City they were not in compliance with the Public Disclosure Act and she received the requested cost estimate. She then requested Edmonds reimburse the $384 in attorney fees she incurred to obtain public information which was also refused. The Mayor's staff indicated she did not properly word the public disclosure request for information. She read her request to obtain a cost estimate for construction of the Pt. Edwards ferry terminal at the original location and the new alignment, and Mayor Haakenson's reply that all cost estimates including overall project costs were preliminary and had not been finalized for release to the public and he was therefore unable to provide the information she requested. Mayor Haakenson provided no other reason for refusing to provide the information. She disagreed with staff's indication that if her request had been for public documents, they would have been provided, commenting if that were true, Mayor Haakenson could have advised her of the correct procedure. The City Attorney's reply to her attorney's request was acquiescence. She requested the Council reimburse her for the cost of an attorney to obtain public information. By withholding public information, Mayor Haakenson failed to comply with the Public Disclosure Act and she was required to incur legal fees to enforce compliance. She requested an answer to her request for reimbursement soon. Paul Rootvik, 19109 Dellwood Drive, Edmonds, encouraged voters to remove Councilmembers Marin and Petso and Mayor Haakenson from office. He also requested an investigation into the corrupt internal misconduct of the City, specifically the Mayor and several staff members for their conduct associated with the 76"' Avenue rockery project, the incident of June 25, 2002 and the perjury of October 25. ampaign I Roger Hertrich, 1020 Puget Drive, Edmonds, referred to an article in the Enterprise that reported City Issues Council candidate Mauri Moore supported legalizing prostitution. He noted the Enterprise failed to report that another City Council candidate, Peggy Olson, also supported legalized prostitution. He recalled an October 12, 2003 Seattle Times article that reported Peggy Olson, running against Lora Petso, spoke at a college forum in support of examining the issue of legalizing prostitution. He concluded this was reason for citizens not to vote for Ms. Moore or Ms. Olson. Mr. Hertrich recalled Ms. Moore later denied or attempted to clarify her statement, an indication of her indecisiveness. He referred to a message to voters from Mayor Haakenson, paid for by contributors to his campaign, and questioned whether voters supported his choices, Peggy Olson, Mauri Moore, Richard Marin, and Dave Orvis, commenting both Councilmembers Marin and Orvis supported higher building heights. Edmonds City Council Approved Minutes October 28, 2003 Page 3 Don Kreiman, 24006 95th Place W, Edmonds, explained he was running for a Council position, noting it was a long and difficult process. He explained Councilmembers were doing a job and although citizens may yell at them, it is a service job for which they are not paid a great deal. He explained that although he may not agree with the Council at times, he respected the job they did. He thanked the audience for participating in the democratic process. 004 Budget 5. PRESENTATION OF THE PRELIMINARY 2004 BUDGET Mayor Haakenson explained the goal in 2004 was to stabilize the services and programs that the City offers by avoiding additional staff cuts, stabilize the level of public safety programs offered by the Police and Fire Departments, and stabilize the City's economic position for the long term. Mayor Haakenson explained that State law required that he present the budget before October 31St each year. However, as the vote on the levy lid lift would not take place until November 41b, the preliminary budget outlined two financial plans for the coming year, one if the levy lid lift passed, and another if the vote was unsuccessful. Mayor Haakenson explained the proposed 2004 budget, without the levy lid lift, totaled $64.5 million, an 8.7% change from last year. With regard to the General Fund, the source of dollars for City programs such as public safety, parks, and development services, the proposed budget totaled $25.6 million, a 5.3% change from 2003. Mayor Haakenson explained the primary reasons for the non - general fund budget increase were two large construction projects: during 2003 the City received federal and state appropriations of $13.5 million dollars for the Edmonds Crossing Project of which $4 million would be spent in 2004. He emphasized these were pass - through dollars and did not impact the overall budget. Water, sewer and drainage projects account for the $2 million increase in the Utility Construction Fund. Adjusting for the pass - through revenue, the overall City budget increase was only approximately 1% over 2003. He explained General Fund cost increases were driven primarily by medical insurance increases, mandatory public safety programs such as dispatch costs, and jail expenditures. Mayor Haakenson explained the proposed City budget would total $64.8 million if the levy lid lift was successful or $60.8 million after deducting the Edmonds Crossing project, with General Fund appropriations amounting to $24.5 million, a 3.3 % change over 2003 General Fund expenditures. He noted if the levy lid lift passed, there would be a decrease of $1.1 million in the General Fund. This decrease was the result of funding essential public safety costs from the levy lid lift, instead of general city revenues, helping to eliminate the possible need for program cuts in 2005. Mayor Haakenson commented on the difficult budget challenges faced during last year's budget deliberations including the elimination of over 20 positions and reducing the General Fund budget by over a million dollars. He explained that in addition to the reductions included in the 2003 budget, Directors were asked to reduce budgeted expenditures during the year, which generated $350,000 in 2003 budget under -runs. Mayor Haakenson cited four additional factors that have helped to stabilize the City's budget outlook for the coming year: 1) The Emergency Medical Services levy was estimated to generate $500,000 more than original estimates; 2) Sales tax receipts for the year were $250,000 ahead of projections; 3) Building permit revenues were $200,000 over 2003 budget estimates; and 4) Under - expenditures have been incorporated into 2004 and future budgets. Edmonds City Council Approved Minutes October 28, 2003 Page 4 Mayor Haakenson commented that while stabilization of the City budget for 2004 was welcome news, it did not mean the City had solved its longer -term financial outlook as property tax limitations, repeal of vehicle licensing fees, and the elimination of State sales tax equalization have created a situation where costs will continue to rise more rapidly than revenues. In order to have a stable economic future, he explained the City would continue to need a combination of voter support for public safety and transportation programs, combined with an increasing emphasis on economic development to expand Edmonds' tax base. Mayor Haakenson explained the proposed budget, other than the public safety levy lid lift proposition currently before voters, proposed no new taxes or fees. He recommended the City collect the statutory 1% increase in general property taxes. A multi -year utility increase approved as part of the 2003 budget was also incorporated into the proposed financial plan for the coming year. If the levy lid lift was approved by voters, Mayor Haakenson recommended the actual dollars collected be reduced from $1.7 million to $1.2 million, a 29.4% reduction in property tax revenue from this source. The rationale was that the County property revaluation generated more than $500,000 from the Emergency Medical Services tax levy approved by voters last year due to the extremely hot real estate market. Mayor Haakenson explained the proposed 2004 budget contained very few new initiatives as his goal in this year's budget was to try to stabilize staffing and services, and expand the City's economic base. He explained the public safety budget contained items originally targeted for elimination during the 2003 budget process, including two police officers, the crime prevention unit, three firefighter /emergency medical technicians, one fire inspector, and funding for future emergency vehicle replacement. He recalled in response to public input, the City restored $518,000 to fund these positions and programs in 2003. These costs, along with mandatory increases in public safety expenses, were included in the 2004 budget proposal. With regard to economic development, Mayor Haakenson recommended two strategies. The first was to hire a temporary Engineering Technician, Building Inspector, and Office Assistant to deal with the substantial work increase caused by the new Triad development on the former Unocal site. These positions would be funded by project permit fees and would go away when the project was completed. The second economic development initiative was the establishment of an Office of Economic Development, which would report directly to the Mayor. He anticipated the Economic Development Director would build on the framework created over the past few years by the Edmonds Alliance for Economic Development. Mayor Haakenson explained funding for the Office of Economic Development would come from funding previously used for the Edmonds Alliance and by not filling the soon- to -be- vacant Human Resource Director position. He explained the City's management team was in the process of recommending the best ways to restructure Human Resource activities to other management staff for the future. He emphasized that although a new Director position was being created, another Director position was being eliminated so the net effect was a zero increase in budgeted positions. Mayor Haakenson outlined other additions to the City's budget including funding for labor negotiations assistance ($30,000); partial restoration of funding for parks seasonal help ($11,000), acquisition of much - needed business license software ($15,000); a replacement electrical van ($12,000); and vaccinations for employees ($4,480). Edmonds City Council Approved Minutes October 28, 2003 Page 5 Should the levy be unsuccessful, Mayor Haakenson explained the long -term financial plan indicated Edmonds would be fiscally sound going into 2005, provided previous reductions in Police, Fire, and other departments were not restored to 2001 levels. Additionally, it appeared the City would need to either reduce expenditures, or raise new revenues of $750,000 in 2005 in order to keep the City in sound fiscal shape through 2009. He noted a list of possible revenue strategies for meeting the $750,000 target was presented in the 2004 budget's background exhibits. Mayor Haakenson summarized the good news in this year's budget was that it was status quo, providing a temporary reprieve from the budget cutting exercises undertaken in the past three years. The bad news was that, even if the levy lid lift was successful, the City would not be able to restore public safety and other programs to pre -2001 levels. If the levy lid lift was not successful, strategies would need to be implemented over the coming year that would result in a combination of budget reductions or revenue increases that will total $750,000 in 2005. Mayor Haakenson recognized and thanked City staff who have worked diligently to provide a high level of public service. He thanked Councilmember Marin for his work on the budget review team. Councilmember Marin echoed Mayor Haakenson's comments regarding the staff, noting they were a tremendous group of people who worked very hard. Mayor Haakenson also expressed his thanks to Administrative Services Director Dan Clements and his staff for preparing the budget in a short period of time. 6. MAYOR'S COMMENTS Leations ency ayor Haakenson advised that due to the windstorm tonight, the City's Emergency Operations Center had been opened and all Directors at the Council meeting had been sent to the Center. He noted there e were power outages, downed trees and minor flooding on the waterfront to contend with. 7. INDIVIDUAL COUNCIL REPORTS ON OUTSIDE COMMITTEEBOARD MEETINGS Community Council President Earling reported Community Transit and Sound Transit opened an expanded Park and Transit and Ride service in Lynnwood, adding approximately 300 parking spaces that would eventually compliment S an it the HOV onramps being constructed at 164"' and 196th. He also reported on the $500 million federal grant approved for light rail construction Historic Councilmember Plunkett reported the Edmonds Historic Preservation Commission will begin an Preservation inventory of historical properties next year funded via a grant the Commission received. He advised the Commission Commission's webpage was operational, a brochure and incentives for property owners were being developed, and a presentation would soon be aired on the local public access TV station. He explained properties placed on the historical register were eligible for a special State tax evaluation where increased value in the property that maintained its historic integrity was not taxed for ten years. The Commission was also working with the City to develop rehabilitation codes that would allow historic properties to rehabilitate and meet standards /codes less than what a new building was required to meet, making it possible for historic properties to remain economically viable. Councilmember Plunkett advised the Commission was also working on grandfathering parking requirements for historic buildings so that if the use of the building changed, additional parking would not be required. The Commission will soon accept its first application for a building, the Museum, to be placed on the register. If the application was accepted by the Commission, it would be presented to the Edmonds City Council Approved Minutes October 28, 2003 Page 6 Council for approval. He summarized the intent of the Historic Preservation Commission's efforts was to make historic buildings more economically viable to increase the likelihood they would be retained. ort of [Edmonds I Councilmember Wilson reported the Port of Edmonds adopted a resolution in support of Proposition 1. "y 99 Task Councilmember Marin reported the Hwy. 99 Task Force was making good progress and would be making Force a presentation within a few weeks including a request for Council Contingency Funds for focus groups and meetings with businesses and property owners. Budget on Mayor Haakenson advised the 2004 preliminary budget was available on the City's website and copies City's bsite would be available tomorrow at City Hall. With no further business, the Council meeting was adjourned at 7:46 p.m. Lney.2� G Y H ENSON, MAYOR SANDRA S. CHASE, CITY CLERK Edmonds City Council Approved Minutes October 28, 2003 Page 7 �J I 0 1 AGENDA EDMONDS CITY COUNCIL Council Chambers, Public Safety Complex 250 5' Avenue North, Edmonds 7:00 - 10:00 p.m. OCTOBER 28, 2003 6:40 p.m. - Executive Session regarding a legal matter. 7:00 D.M. - Call to Order Flag Salute 1. Approval of Agenda 2. Consent Agenda Items (A) Roll Call (B) Approval of City Council Meeting Minutes of October 21, 2003. (C) Approval of claim checks #66225 through #66362 for the week of October 20, 2003, in the amount of $206,775.93. (D) Approval of. list of Edmonds businesses applying for renewal of their liquor licenses with the Washington State Liquor .Control Board. (E) Prioritization of HUD Grant Projects and authorization of resolution to submit grant application for 2004 Snohomish County CDBG Capital Program. (F) Bond Capital Projects Update. (G) Authorization to advertise for Statements of Qualification from consultants for the design of the Interurban Trail Project (228th Street SW to SR 104). 3. (10 Min.) Cemetery Board Annual Report. 4. Audience Comments (3 minute limit per person)* *Regarding matters not listed as Closed Record Review or as Public Hearings. 5. (30 Min.) Presentation of the Preliminary 2004 Budget. 6. ( 5 Min.) Mayor's Comments 7. (15 Min.) Individual Council reports on outside committee /board meetings. 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. The Council Agenda as well as a delayed telecast of the meeting appears on cable television Government Access Channel 21.