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10/28/1997 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES OCTOBER 28, 1997 The Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Barbara Fahey in the Library Plaza Room, 650 Main Street, followed by the flag salute. ELECTED OFFICIALS PRESENT Barbara Fahey, Mayor Dave Earling, Council President John Nordquist, Councilmember Roger L. Myers, Councilmember Jim White, Councilmember Dick Van Hollebeke, Councilmember Gary Haakenson, Councilmember ABSENT Thomas A. Miller, Councilmember ALSO PRESENT Andy Streit, Student Representative 1. APPROVAL OF AGENDA STAFF PRESENT Michael Springer, Fire Chief Paul Mar, Community Services Director Art Housler, Administrative Services Director Noel Miller, Public Works Superintendent Brent Hunter, Human Resources Manager Dee McGrath, Executive Assistant Sandy Chase, City Clerk Jeannie Dines, Recorder Mayor Fahey requested Item E be removed from the Consent Agenda and placed on the agenda to allow staff to provide new information. COUNCIL PRESIDENT EARLING MOVED, SECONDED BY COUNCILMEMBER HAAKENSON, TO REMOVE ITEM E FROM THE CONSENT AGENDA AND DESIGNATE IT AS AGENDA ITEM 3A. MOTION CARRIED. COUNCILMEMBER VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER MYERS, FOR APPROVAL OF THE AGENDA AS AMENDED. MOTION CARRIED. 2. CONSENT AGENDA ITEMS COUNCILMEMBER VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER HAAKENSON, FOR APPROVAL OF THE CONSENT AGENDA AS AMENDED. MOTION CARRIED. The agenda items approved are as follows: (A) ROLL CALL (B) APPROVAL: OF CITY COUNCIL MEETING MINUTES OF OCTOBER 21, 1997 Edmonds City Council Approved Minutes October 28, 1997 Page 1 (C) APPROVAL OF CLAIM WARRANTS #15980 THRU #20877 FOR THE WEEK OF Claim OCTOBER 20,1997, IN THE AMOUNT OF $166,725.38 (D) REPORT ON THE GENERAL FUND FINANCIAL POSITION FOR THE PERIOD ENDED SEPTEMBER 30, 1997 (F) APPROVAL OF FINDINGS OF FACT AND CONCLUSIONS OF LAW FOR A CLOSED RECORD REVIEW HELD ON OCTOBER 14, 1997, ON THE SHORELINE APPLICATION VARIANCE REQUEST BY THE PORT OF EDMONDS (G) AUTHORIZATION FOR MAYOR TO SIGN PROFESSIONAL SERVICES AGREEMENT WITH THE CHARLES GROUP FOR SERVICES RELATED TO THE MEDICAL SELF INSURANCE PROGRAM (H) AUTHORIZATION TO ATTEND OUT OF STATE TRAINING (NATIONAL FIRE ACADEMY) (I) APPROVE EASEMENT REQUEST FROM COMMUNITY TRANSIT TO PLACE A BUS SHELTER AT NORTHWEST CORNER OF YOST PARK (J) APPROVAL OF MUNICIPAL LEASE WITH DRIFTWOOD PLAYERS, INC. 3. PRESENTATION OF THE 1998 BUDGET Mayor Fahey presented the balanced preliminary budget for 1998. She explained when developing the budget, it was necessary to make many assumptions regarding revenues and expenses. Part of the assumptions related to expenditures was an attempt to discern the Council's wishes regarding types and levels of service. Once again this year, a member of the Council was invited to join the Budget Oversight Committee in the hope that the collaborative effort would create a budget principally reflective of the wishes of the Council. Recognizing that one Councilmember did not represent the views of the Council as a whole, the preliminary budget is presented as a starting point from.which refinements can be made and a final budget for 1998, that is acceptable to all, can be established. She said this extensive message was prepared to acquaint the Council and citizens with the many factors that went into the creation of the budget and urged them to recall the challenges faced in the last two years. Executive Assistant Dee McGrath displayed an overhead illustrating the original 1996 operating budget ($17,271,680) and the 1996 budget after cuts were made ($16,668,088); the original 1997 budget ($17,517,640) and the actual 1997 budget ($17,829,180) and the proposed 1998 operating budget ($18,882,640). Mayor Fahey explained almost all of the increases were a result of salary and benefit increases and intergovernmental increases due in part to the population increase of 4,000 from annexations. Mayor Fahey said, shortly after she took office in 1996, it became apparent that revenues were not on target with projections. Drastic cuts had to be made in order to keep expenses in line with income. As a result, equipment purchases were put off and some projects deferred. Going into the budget process for 1997, the City faced the challenge of a projected million dollar shortfall caused by diminished ending cash balance and increased assessments from other government agencies. The City met that challenge using extremely conservative revenue increase projections. In addition, the City did not offset any expenses with anticipated one time revenues such as the sales taxes and permitting fees associated with major building projects such as the Edmonds Woodway High School. Edmonds City Council Approved Minutes October 28, 1997 Page 2 Mayor Fahey reported as a result of the modified zero based budgeting method she initiated last year, staffs dedicated efforts at cost containment, and conservative revenue projections, the City will end 1997 in a very strong fiscal position and the ending cash balance is estimated to be $946,390. A portion of this amount is from budgeted expenditures in 1997 that will be carried forward and rebudgeted in 1998. In addition, the beginning cash balance for 1997 was over $150,000 higher than had been projected, and various other revenues were higher than anticipated. Finally, unanticipated, one time sales tax revenues were even higher than projected due to the Port of Edmonds rebuilding. This extraordinary sales tax revenue windfall is a one time occurrence, and projections for next year have taken that into account. The use of very conservative revenue estimates gives the best assurance that, as in 1997, the budget can be maintained, and there will be a strong cash balance at the end of the year. An overhead illustrating a comparison between 1997 and 1998 expenditures, the General Operating Budget, and ending cash was displayed. Mayor Fahey explained both the General Operating Budget and the Comprehensive All Funds Budget have increased significantly for 1998. Although there is a perception that somehow a City's budget is tied to the CPI index and should not increase more than that indicator, she explained that very little in an operating budget actually increased in relationship to CPI. If exactly the same supplies and equipment were purchased, the same services were provided, the same personnel were employed, the same projects were repeated, and so on, budgeting would be a very simple percentage increase process. However, in a City, all of these items change every year. In addition, the advent of the technological age has placed new demands on cities such as the need for computer and software purchases and training. These advancements create efficiencies and better communication, but the investment in new equipment is enormous. Finally, public safety costs are skyrocketing. New data terminals were needed for police vehicles. The cost of prisoner care grows based on fees for service established by providers, and these costs are multiplied by the increasing numbers of prisoners and the increased amount of jail time required for repeat offenders. More people are demanding jury trials due in part to the increased number of domestic violence cases we handle. On the Fire side, data terminals are also necessary for response vehicles. State requirements for new types of rescue training are increasing and Emergency Medical Service (EMS) costs are escalating far in excess of inflation for the same reasons. Mayor Fahey advised the 1998 budget was developed taking the preceding information into consideration as well as the following. 1) VISION, MISSION, GOALS: In 1996, staff worked with the consultants doing the Human Resource Study to define a vision, mission, and goals. These were presented in draft form to Council in conjunction with the 1997 budget, but the Council has taken no action to either modify or ratify them. However, a lot of effort went into their creation, and they reflect staffs assessment of what the City is trying to accomplish. She explained, since every budget should be based on a plan containing these elements, the same draft document was used when developing the 1998 budget. She indicated a copy of this information was contained in the budget book. 2) SALARY COMPENSATION: The Human Resources Study completed earlier this year clearly established serious salary deficiencies for many of the City's non -represented employees when compared to salaries for similar positions in comparable cities. This was due in part to wage freezes a few years ago when revenue shortages occurred. As a result, the compression factor (salaries of represented employees matching or exceeding that of their supervisors) is a growing concern. When salaries are not competitive, there is every likelihood—especially in a tight labor market—that the City will lose experienced, valuable employees. Working with three Councilmembers who serve on the Long Range Planning Committee, a plan for phasing in salary adjustments over the next five years was developed. Edmonds City Council Approved Minutes October 28, 1997 Page 3 The recommended increases have been implemented in the appropriate salary lines. This, coupled with salary increases determined through the negotiating process, have caused salaries to rise $727,560 or 7.9%. Supporting benefits are increasing $145,210 or 6.2%. 3) . TRAINING: Good human resource management requires continual training so employees are constantly enhancing their ability to do their jobs and to advance to better positions. In addition, the introduction of new technology requires training in order for it to be fully utilized. Further, Mayor Fahey advised it was one of her goals to fully implement outcome based performance standards. Supervisors must be educated in this process in order to establish it as a policy of administration. The amount of funding transferred to the 008 Travel and Training Fund has been increased to reflect a minimum $150 investment in the training of each employee. This is an annual cost standard she hoped could always be maintained but noted it could be lowered in future years if revenues could not support it. She said her perception is that the Council supported the concept of training being tied to performance goals as an appropriate management tool and would support this allocation. 4) EQUIPMENT RENTAL FUND: In the 1997 budget, a one time adjustment was made to reflect the interest accumulation in the Equipment Rental Fund #511. Departments did not have to budget to transfer funds to cover car replacement costs. This was presented in the 1997 budget message with the indication that in 1998, expenses would increase significantly to cover this item again. As it turns out, it was not necessary to expense 100% of the estimated prorated replacement cost since there is still some interest reserve. This year it was expensed at 56%. Next year the additional 44% will have to be included. She noted there was a large increase in this line in every cost center; the approximate total increase to General Fund expenses was $135,200. 5) EQUIPMENT PURCHASES: As already indicated, some equipment purchases were deferred in 1996 and 1997 because of budget constraints. There is also a need for additional office furnishings in various areas of the new City Hall. Some of the one time revenues in the ending cash balance have been allocated to cover these one time, catch-up purchases which are badly needed and amount to approximately $46,960. The data terminals and new fire hose for the Fire Service are being phased in over several years. 6) TRAVEL: It has become increasingly important for the City to be represented at State and National meetings where legislative action impacting cities is determined. Fortunately, there is more Council involvement in this area, as well as Mayor and staff participation. Mayor Fahey advised she is also working directly with the Congressional representatives and the National League of Cities to pass an amendment to the Fair Housing Act to return local control to cities on the location of group homes. This may require additional trips to testify on this matter. Travel to Hekinan for Edmonds Sister City's 50th anniversary has also been included. In 1997, the City joined a government airfare purchasing plan that has saved the City a considerable amount. However, lodging associated with travel makes this a significant budget item. Ms. McGrath displayed an overhead indicating project travel expenses for 1998 would be $54,770, a $17,620 increase over 1997 travel expenses of $47,150. 7) SPECIAL REQUESTS: Mayor Fahey noted Councilmembers have expressed support of her economic development initiatives and the work of the Alliance. In the last two years, allocations have been made to fund projects apart from the annual $30,000 restricted funding from the Hotel/Motel tax revenues for tourism promotion. Council has consistently stated its desire to see support coming from the business community to help cover the cost of economic development projects. This year $25,000 has been allocated to be used for matching fund grants to cover specific projects associated with the creation of marketing products such as a business recruitment packet. These funds will be dispersed as a match to Edmonds City Council Approved Minutes October 28, 1997 Page 4 contributions from community businesses. $10,000 in unrestricted funds have been designated to the Alliance to assist with basic operating costs. Further, in accordance with direction from the Council, $10,000 in undesignated funds has been set aside in the Council Contingency Fund to address special requests from non-profit Human Services Agencies. The process for considering these requests is still being developed by the Finance Committee. The annual request from the South Snohomish County Senior Center for funding assistance in return for services provided to Edmonds citizens has been allocated in the amount of '$36,050. This is an increase of $1,050 from the allocation in 1996 and 1997. In addition, $10,000 is being transferred to the Facilities Maintenance Fund to cover routine maintenance at the Center. Attachment 8, a list of service expenditures for the years 1993 through 1998 was displayed. Mayor Fahey pointed out a request for a $10,000 allocation was submitted from Teenhope within the last week. With this in mind, she noted the Council may wish to increase the reserves to cover requests. 8) INTERGOVERNMENTAL: Mayor Fahey explained that once again, increases in this area were significant. Assessments have increased by $237,050 to the General Fund. Exhibit 5, a comparison of intergovernmental expenditures for 1998 and 1997, was displayed. She pointed out expense for animal care in the amount of $20,000 was included in the 1997 budget book. In 1998, the City will contract for services with a non-government service provider so the costs are now reflected in the animal control cost center of the police budget. 9) ANNEXATIONS: No revenue or expenses related to pending annexations have been included in the 1998 budget. An annexation addendum will be prepared after the outcome of the elections determine which of the areas are becoming part of Edmonds. 10) UNANTICIPATED EXPENDITURES 1997: Expenditures totaling $568,040 (Attachment 9) were authorized by the Council in 1997 offset by unanticipated revenues. Attachment 6 demonstrates revenue increases over original budget projections. The numbers on this report do not match the. 1997 revenue amounts reported in the 1998 budget book since the amounts have been adjusted by ordinance during the year to offset the additional unanticipated expenditures. According to this attachment, there has been an increase to actual revenues over estimates of $974,480. The immediate assumption is that the ending cash balance reflects this amount, but that is not accurate. Since $586,040 (Attachment 9) of the unanticipated revenues were spent in 1997, they have to be factored out of the ending cash balance. Revenues for 1998 are projected at $18,171,300. Referring to Attachments 3 and 4, Mayor Fahey noted this is lower than the $18,352,530 yearend estimated revenues for 1997. However, this is not an accurate picture. In the 1997 budget process, $300,000 was transferred into the Council Contingency Fund to cover salaries for 1997 once contracts were established. When negotiations were complete, $331,130 was transferred back to the General Fund and became "new" revenues. Essentially, it was double counted. The same thing occurred in the 1996 budget when $78,760 was put into a reserve fund to cover the possible reimbursement of excess gas tax payments. She noted the revenues for gas utility taxes in 1996 were quite low because of the amount placed in reserve. In the end, the City did not have to refund the money and it was transferred back to gas utility taxes as revenue in 1997. In reality, new gas utility revenue for 1997 was not $360,000 as indicated in Attachment 6; it was $281,240 or $21,040 over original estimates. In the final analysis, there are no unanticipated revenues included in the ending cash balance. However, all of the original projected beginning cash balance, and most of the increased beginning cash created from delayed expenditures in 1996 is intact. A worksheet was displayed illustrating true unanticipated Edmonds City Council Approved Minutes October 28, 1997 Page 5 1 revenues, unanticipated expenditures approved by Council in 1997, and beginning cash from 1997 carried into 1998 of $420,290. Mayor Fahey explained numerous revenue assumptions have been made for this budget which are presented in Attachment 5, General Fund 1998 Revenue Conditions/Assumptions. Referring to Item 7, sales tax revenue, she noted that $330,000 was one time sales tax revenue. These revenues were not factored into the 1997 projects. When they are backed out of the total 1997 actual revenues, $18,352,530 - $409,890 = $17,942,640 -- amount adjusted for the double counting), "reliable revenues" (those which come in each year), were $17,612,640. Mayor Fahey explained a further complication was the 1997 original estimate of $17,378,050 was actually over estimated because of a misunderstanding of how the transport fees would be collected. In the budget, $97,000 was listed as a pass-through revenue. In reality, the transport fees were deposited into the Medic 7 accounts. Attachment 6, General Fund Revenue Trend for 1996 - 1998, showed a zero for revenues on this line since they did not come to the City. Estimated revenue for 1997 should have been $17,281,050 ($17,378,050 - $97,000). This results in "reliable revenues" that are $331,590 higher than anticipated. Mayor Fahey pointed out Attachment 6 also showed 1998 estimated revenues compared to 1997 year- end estimates and clearly demonstrates that the funds being budgeted are "reliable revenues" that will support the expenditures that must be carried on from year to year. Mayor Fahey explained Sales Tax Equalization revenues are decreasing by $402,000 (Item 16 in Attachment 5). When this was taken into consideration, it appeared necessary to increase property taxes the full 6%. Each 1% generates approximately $53,000 in revenue. The full 6% would generate $318,000 which would still leave an $84,000 differential. However, now that the proposed budget is fully defined, an ending cash balance of $253,950 is projected. If the Council wishes to lower the property tax increase, a lower ending cash balance would result. This would mean that ending cash from 1997 was being used to cover fixed expenses which might have negative impacts on the 1999 budget. Mayor Fahey believed that, at this time, the ending cash balance was being used to cover rebudgeted items and non reoccurring expenses. Mayor Fahey explained equalization taxes were one component of the total category, state shared revenues. A schedule illustrating trends in all areas of state shared revenues for years 1995 through 1998 was displayed as well as Exhibit 1, a graph comparing 1998 to 1997. When reviewing the revenues, she noted that property taxes account for 37% of the budget in 1998 compared to 34% of the budget in 1997. At the same time, intergovernmental which reflects the equalization tax reduction is 2% lower in 1998. The other 1% is the result of the increase in the EMS levy from $0.45 to $0.50 per $1,000 of assessed valuation. This brings in an additional $154,300 to offset, but not fully cover increased EMS costs. She noted that public safety costs have gone up and now total $9,138,570 or 48% of the total budget while property taxes (inclusive of the EMS levy) only generate $6,991,000 or 37% of revenues. This means that even with the 6% property tax increase, 11% of public safety costs are covered by other revenues. Mayor Fahey indicated that other specific expenditure assumptions were presented in Attachment 7. She referred to Item 6 on Attachment 7 regarding Medic 7 costs. In 1997, Edmonds assessment was $398,000 and was reduced to $301,000 due to the projected transport fee. The assessment for 1998 is $451,600. The additional $.05 per $1,000 of assessed valuation will generate $154,300 additional EMS revenues. This will cover the $150,000 difference between this year and next. However, the additional cost increases to provide the Basic Life Support (BLS) services from the fire stations will have to be Edmonds City Council Approved Minutes October 28, 1997 Page 6 covered from other revenues to the General Fund. She noted there has been a lot of dialog regarding the use of the EMS levy money to offset the BLS services provided from each of the Edmonds fire stations. Some feel the levy should fully fund Medic 7 and General Fund moneys should support the local services. She pointed out the bottom line is that providing a two tiered medical response creates costs far in excess of the revenues generated by the Levy. Now that the levy assessment is at maximum, each year will bring a greater drain on General Fund revenues. The actual operating expenses for 1998 are expected to be $18,882,640. Attachment 9 compares 1998 to 1997. The year end expenditures for 1997 are estimated at $17,829,180. The $1,053,460 or 5.9% increase is primarily the result of increased salaries and benefits which total $872,770. The remaining $180,690 is accounted for in Attachment 11, General Fund Expenditure Increases by Category for years 1995-1998. Mayor Fahey began the review of the full budget (all funds). She explained Exhibit 4 contrasts a budget of $63,496,920 for 1998 compared to $62,283,100 for 1997 which really illustrates the activities that are planned for 1998. She explained there would be a significant change in the funds of this budget due to the capital projects the City has under way and is reflected in the change in ending cash balance between 1997 and 1998. She referred to Exhibit 4, a graph showing comparison between 1997 and 1998 for all funds. A schedule comparing the 1997 yearend estimate to the 1998 budget for each category (Day -to -Day Operations, Special Designated Activities, Debt Payment, Capital Projects, Equipment, All other Activities, Interfund Transfers) was displayed. Mayor Fahey explained Day -to -Day Operations fall into two categories—City operating expenses for all service areas and external agency expenses called intergovernmental services. Other Funds, such as Street Maintenance, Sewers, and Wastewater Treatment Plant, have experienced increases in the same areas as the General Fund. She noted increases in the intergovernmental category for all funds account for $475,900 and are graphically displayed in Exhibit 5. Mayor Fahey explained Special Designated Activities refer to items funded by special accounts. A list of the Special Designated Category Funds and budgeted amounts for each in 1998 (a total of $775,710) is included in the budget book. She said Debt Service decreased slightly and noted a list of the bond payments currently being made for years 1995 through 1998 was included in the budget book. Mayor Fahey explained that Fire Station #10, the Library, and the Public Works Building are all paid out of the General Fund, a total of $533,640. Public Safety is a voted bond issue. The Financial Center is paid with a real estate sales excise tax. Water/Sewer are covered by LIDs. The Treatment Plant is covered from its own fund. Capital Projects shows a major increase of $8,466,510. This is due to the construction of the public safety facilities scheduled to begin next spring. The Highway 99 expansion is also scheduled to start in 1998. She noted there was a list of the capital projects in the last section of the budget book. Equipment expenses have increased for reasons already explained as well as some major purchases for the Treatment Plant. All Other Activities shows the over $800,000 increase as a result of creating the self-insurance fund. Mayor Fahey explained the General Operating Fund expenditures are $18,882,640 for 1998 compared to $17,829,180 in 1997. As already indicated, Public Safety costs are 48% of that amount. In 1995, the Edmonds City Council Approved Minutes October 28, 1997 Page 7 percentage was 43% and 45% in 1997. Each year they take a larger bite out of the General Fund which places a strain on all other goods and services. However, the safety and security of the residents of Edmonds must be the top priority. Exhibit 1, a comparison of 1997 and 1998 expenses in all General Fund areas, was displayed. She pointed out ending cash balances have to be subtracted from totals to get expenses. Reserves are set at $1,603,470. Exhibit 6 shows the Financial Emergency Fund is now $1,189,520, up from $868,840 in 1996. $60,000 has been allocated to the Council Contingency Fund which brings it up to $160,000. After the undesignated funds have been allocated, there will be a balance of $150,000 which is the established desired reserve. Mayor Fahey commented the assessment from Sno-Isle Library for 1997 is $895,000, a 4% increase. People living in the county pay an extra assessment for the use of the Sno-Isle Libraries. In Edmonds, it is covered out of the General Fund. In addition, the bond issue that built the library was a Councilmanic Bond. This means repayment of the bond comes out of the General Fund. Edmonds residents do not pay any extra property taxes for this facility. The cost of bond payments for 1998 will be $317,410. The total cost of providing this service to citizens is $1,212,410. Mayor Fahey explained the City has now implemented its medical self-insurance plan which will have significant benefits for both employees and the City. Premiums have been maintained at the same rate as 1997. If the City were still with AWC, plan premiums would be increasing. Stop loss policies are in place so the City is carefully managing the risk. The residual between claims and premiums will now be held by the City. This will provide the funds needed to cover the LEOFF 1 liability in the future. Mayor Fahey said even with Modified Zero Based Budgeting, it is hard to determine what percentage of time several full time staff members give to the flower program. A reasonable estimate of total cost is $60,000. With the new allocation of $20,000 to cover the corner gardens, it is still costing $40,000 of General Fund resources to maintain this program. Mayor Fahey said Councilmember Myers participated in the budget review process this year. She expressed her appreciation for his diligence and insightful recommendations. She explained she and her staff tried to develop a budget that was responsive to the needs of citizens, reflective of community values and, she hoped, in keeping with the desires of the Council. She looked forward to working with the Council over the next few weeks to refine the budget and establish the basis for the operations of the City in 1998. She thanked the staff for their assistance, particularly the Finance Department and Ms. McGrath. Council President Earling directed the Council's attention to the Extended Agenda which included extra meetings for budget workshops. He pointed out a 30 minute budget workshop on the November 3 Council agenda would give Councilmembers an opportunity to review the budget and begin their analysis of items they would like emphasized during the budget process. He noted the budget workshop tentatively scheduled for Thursday, November 20, likely would need to be changed due to schedule conflicts. Council President Earling thanked Mayor Fahey, Councilmember Myers, and staff for the development of the preliminary 1998 budget. 3A. REPORT ON BIDS OPENED OCTOBER 22, 1997, FOR THE PURCHASE OF A UTILITY BUCKET TRUCK AND AWARD OF CONTRACT TO ALTEC INDUSTRIES>($64,593.11) INC. Public Works Superintendent Noel Miller explained after the Council's packet was prepared, the City was approached by the low bidder, Pacific Utility, who indicated there was a misunderstanding in Edmonds City Council Approved Minutes October 28, 1997 Page 8 preparing the proposal and they could deliver a demo vehicle within three weeks with no change in the price. Altec Industries, the second bidder, indicate they too could deliver a vehicle in less than 30 days. Mr. Miller advised he discussed the issue with City Attorney Scott Snyder, who said this is not negotiation after the fact but only clarification in the proposals. Mr. Miller recommended award of the contract to the low bidder, Pacific Utility Equipment, whose bid amount was $64,035.99. Councilmember Van Hollebeke pointed out the price for a demo vehicle was actually higher on two of the three bids than a new vehicle. Mr. Miller advised 120 days was required for delivery of a new vehicle; therefore, demo vehicles were at a premium. He noted Pacific Utility was providing a demo vehicle which was in the last stages of manufacturing and had zero miles. Councilmember Van Hollebeke recalled the demo vehicle provided by Altec Industries had approximately 2,000 miles. Mr. Miller noted the City would also pay a premium in rental charges to wait for the manufacture of a new vehicle. COUNCIL PRESIDENT EARLING MOVED, SECONDED BY COUNCILMEMBER VAN HOLLEBEKE, TO AWARD THE BID TO PACIFIC UTILITY EQUIPMENT IN THE AMOUNT OF $64,035.99 WITH FUNDS APPROPRIATED FROM THE EQUIPMENT RENTAL FUND AND STREET FUND 111 AND TO AUTHORIZE THE MAYOR TO SIGN THE CONTRACT FOR SAID EQUIPMENT. MOTION CARRIED. 4. MAYOR Mayor Fahey requested Fire Chief Springer provide an update on the fire at Westgate Chapel and the selection of a new Assistant Fire Chief. Fire Chief Springer advised the Fire Department was alerted to a fire alarm at Westgate Chapel at 1:40 a.m. on Sunday, October 26. Response to the fire confirmed fire and smoke and the alarm was upgraded to a Southwest Snohomish County regional fire with responding agencies from Shoreline, Lynnwood, Mountlake Terrace, and Fire District 1/11. The fire was quickly attacked with the staffing on the first alarm response and the fire was contained to the original multiple locations and extinguished. Chief Springer explained there was extensive smoke damage throughout the complex. An initial estimate of $50,000 in damage was increased to $500,000 - $1 million. He pointed out the fantastic cooperation between fire agencies kept damage to a minimum. Due to the two obvious starts of this fire, the Edmonds Police Department began an immediate arson investigation. The arson investigation team that investigated fires set by arsonist Paul Keller was partially reassembled and is also cooperating in the investigation. He urged the public to contact the Edmonds Police Department (425-771-0200) or 911 with any significant information they may have. Chief Springer said 25 applications were submitted for the Assistant Fire Chief position. Following an extensive review process, three were selected to proceed to the final oral interview. He and Mayor Fahey were pleased to announce that Kevin M. Taylor had been selected and had accepted the position. His official start date will be November 10, 1997. Chief Springer explained Mr. Taylor was a very energetic individual who was very knowledgeable, a very strong leader, and has a very strong background in training. He explained Mr. Taylor was a student in the Edmonds School District and began as a volunteer fire fighter in Edmonds in the late 1970's. He then tools a job with a surrounding Fire District and then a lateral transfer to King County Fire District #10 (Issaquah). Chief Springer advised Mr. Taylor would be introduced to the Council in November. Edmonds City Council Approved Minutes October 28, 1997 Page 9 Mayor Fahey invited the public to the Halloween Trick or Treat event in the downtown area of the City on Friday, October 31. Mayor Fahey advised next Tuesday's Council meeting was rescheduled to Monday, November 3 due to the elections on Tuesday, November 4. She announced the Open House to celebrate the opening of the new City Hall would be held on Tuesday, November 4. There would be tours throughout the day beginning at 1:00 p.m. and an official ceremony at 5:00 with official dedication of the new public art pieces. A reception will follow. Mayor Fahey reminded citizens Tuesday, November 4 was Election Day and urged citizens to exercise their privilege to vote for Council positions as well as other important issues on the ballot. 5. INDIVIDUAL COUNCIL REPORTS/UPDATES ON RESPECTIVE BOARD MEETINGS Council President Earling reported all citizens in Edmonds would be receiving a report from the RTA. This report will be included in all major newspapers on Wednesday or Thursday. He urged citizens to review the report which describes the progress made to date. Councilmember White, Council liaison to the Port of Edmonds, reported the new structures at the Port were anticipated to be completed in late December. When they are completed, the structure at the south end of the parking lot will be removed and a new structure constructed. He advised in addition to the new docks, new signage would also be erected. Regarding the Cultural Arts, Stadium, and Convention District, he reported the campaign to pursue a Convention Center/Performing Arts Center in the South Snohomish County area is continuing and a campaign committee has been formed. Councilmember Van Hollebeke, Chair of the Edmonds Alliance for Economic Development, said they plan to seek matching funds from the City to assist with enhancing economic development in the community. He reported the Beaux Arts Ball, co-sponsored by the Cascade Symphony and the Olympic Ballet, exceeded its previous best attendance records by over 100 people and therefore was also much more economically successful than previous events. He reported the Edmonds Community College Foundation's Vintage Evening at the Columbia Winery, was also sold out and thanked the community for their support. Councilmember Haakenson, boardmember of SnoCom and Medic 7, explained the future of Medic 7 is often discussed by citizens. He advised the Chair of SnoCom, Mountlake Terrace City Councilmember Pat Cordova, had established a committee to study the future of SnoCom in the next five years and he was selected as the Chair of that committee. Councilmember Nordquist reported he serves with Councilmember Myers as representatives to the Snohomish County Health District and he has served as Chair this year. Councilmember Myers reported during Councilmember Nordquist's tenure as Chair of the Snohomish Health District, there have been major renovations including an extensive remodel of the building which was completed under budget as well as extensive changes in Health Board personnel. He advised the Health Board would be holding a very important hearing on November 18 regarding tobacco advertising in Snohomish County including the possible restriction of tobacco advertising. He urged citizens to provide input at the hearing. On another matter, Councilmember Myers reported the Cascade Symphony's first concert of the year was excellent. He congratulated the Conductor for the innovative things he is doing and urged the public to attend future performances. Edmonds City Council Approved Minutes October 28, 1997 Page 10 Student Representative Andy Streit provided an update on the ongoing mascot issue at Meadowdale High School. On October 27, an administrative forum was held which included two Native Americans who spoke on both sides of the issue. Following the presentation, staff members held a forum and students were provided advisory ballots to vote on the issue. Their votes, as well as the staffs and the Site Council's recommendations, will be considered by the principal who will make a recommendation to the School Board. The School Board will make a final decision in December. With no further business, the Council meeting was adjourned at 8:22 p.m. SANDRA S. CHASE, CITY CLERK BARBARA S. FAHEY, MAYOR Edmonds City Council Approved Minutes October 28, 1997 Page 11 AGENDA EDMONDS CITY COUNCIL Plaza Meeting Room - Library Building 650 Main Street 7:00 -10:00 p.m. OCTOBER 28, 1997 WORK MEETING 7:00 P.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, 1997 (C) APPROVAL OF CLAIM WARRANTS #15980 THRU #20877 FOR THE WEEK OF OCTOBER 20, 1997, IN THE AMOUNT OF $166,725.38 (D) REPORT ON THE GENERAL FUND FINANCIAL POSITION FOR THE PERIOD ENDED SEPTEMBER 30, 1997 (E) REPORT ON BIDS OPENED OCTOBER 22, 1997, FOR THE PURCHASE OF A UTILITY BUCKET TRUCK AND AWARD OF CONTRACT TO ALTEC INDUSTRIES, INC. ($64,593.11) (F) APPROVAL OF FINDINGS OF FACT AND CONCLUSIONS OF LAW FOR A CLOSED RECORD REVIEW HELD ON OCTOBER 14, 1997, ON THE SHORELINE APPLICATION VARIANCE REQUEST BY THE PORT OF EDMONDS (G) AUTHORIZATION FOR MAYOR TO SIGN PROFESSIONAL SERVICES AGREEMENT WITH THE CHARLES GROUP FOR SERVICES RELATED TO THE MEDICAL SELF INSURANCE PROGRAM (H) AUTHORIZATION TO ATTEND OUT OF STATE TRAINING (NATIONAL FIRE ACADEMY) (1) APPROVE EASEMENT REQUEST FROM COMMUNITY TRANSIT TO PLACE A BUS SHELTER AT NORTHWEST CORNER OF YOST PARK (J) APPROVAL OF MUNICIPAL LEASE WITH DRIFTWOOD PLAYERS, INC. 3. (30 Min.) PRESENTATION OF THE 1998 BUDGET 4. (5 Min.) MAYOR 5. (15 Min.) INDIVIDUAL COUNCIL REPORTS/UPDATES ON RESPECTIVE BOARD MEETINGS Parking and meeting rooms are accessible for persons with disabilities. Contact the City Clerk at 771-0145 with 24 hours advance notice for special accommodations. The Council Agenda appears on Chambers Cable, Channel 32. Delayed telecast of this meeting appears the following Wednesday, Friday and Monday at noon on Channel 32.