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09/22/1998 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES SEPTEMBER 22, 1998 Following a Special Meeting at 6:45 p.m. to interview a candidate for the Sister City Commission, 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. The meeting was opened with the flag salute. ELECTED OFFICIALS PRESENT Barbara Fahey, Mayor Gary Haakenson, Council President Dave Earling, Councilmember John Nordquist, Councilmember Michael Plunkett, Councilmember Jim White, Councilmember Dick Van Hollebeke, Councilmember Thomas A. Miller, Councilmember 1. APPROVAL OF AGENDA STAFF. PRESENT Ron Haworth, Interim Fire Chief Kevin Taylor, Assistant Fire Chief Al Compaan, Assistant Police Chief Paul Mar, Community Services Director Jeff Wilson, Planning Supervisor Brent Hunter, Human Resources Director Doug Farmen, Accounting Manager Sandy Chase, City Clerk COUNCIL PRESIDENT HAAKENSON MOVED, SECONDED BY COUNCILMEMBER MILLER, dditions to TO ADD A 15-MINUTE DISCUSSION OF ASCENT 21 AS IT RELATES TO THE BENEFIT FOR he Agenda THE CITY OF EDMONDS AS AGENDA ITEM 6A. MOTION CARRIED. COUNCIL PRESIDENT HAAKENSON MOVED, SECONDED BY COUNCILMEMBER VAN HOLLEBEKE, TO ADD A 20- NIINUTE EXECUTIVE SESSION TO DISCUSS A LEGAL/PERSONNEL MATTER AS AGENDA ITEM 9. MOTION CARRIED. COUNCILMEMBER VAN HOLLEBEKE MOVED, SECONDED BY COUNCIL PRESIDENT HAAKENSON, FOR APPROVAL OF THE AGENDA AS AMENDED. MOTION CARRIED. 2. CONSENT AGENDA ITEMS Council President Haakenson requested Item B (Approval of City Council Meeting Minutes of September 14, 1998) be removed from the Consent Agenda. COUNCILMEMBER VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, FOR APPROVAL OF THE BALANCE OF THE CONSENT AGENDA. MOTION CARRIED. The agenda items approved are as follows: (A) ROLL CALL pprove (C) APPROVAL OF PAYROLL WARRANTS #21938 THROUGH #22094 FOR THE PERIOD Payroll Warrants > > $438,104.95 SEPTEMBER 1 THROUGH SEPTEMBER 15 1998 IN THE AMOUNT OF Edmonds City Council Approved Minutes September 22, 1998 Page 1 1 Claim for (D) ACKNOWLEDGE RECEIPT OF CLAIM FOR DAMAGES FROM STEPHANIE Damages GRAHAM ($200.91) Quit Claim Deed (E) ACCEPTANCE OF QUIT CLAIM DEED AT 20417 88TH AVENUE WEST FROM 0417 88th NICHOLAS D. HART Easements - (F) ACCEPTANCE OF UTILITY AND CONSTRUCTION EASEMENTS FROM CARL P. Pearson AND POLLY PEARSON Street Over- (G) REPORT ON FINAL CONSTRUCTION COSTS FOR THE 1998 STREET OVERLAY lay Program PROGRAM AND COUNCIL ACCEPTANCE OF PROJECT Street Surface (H) REPORT ON FINAL CONSTRUCTION COSTS FOR THE 1998 STREET SURFACE Treatment TREATMENT PROGRAM AND COUNCIL ACCEPTANCE OF PROJECT Yost Pool (1) REPORT ON FINAL CONSTRUCTION COSTS FOR THE YOST PARK IMPROVEMENTS TO YOST POOL AND COUNCIL ACCEPTANCE OF PROJECT Fire Ladder Truck I (J) REPORT ON BIDS RECEIVED FOR MISCELLANEOUS EQUIPMENT FOR THE FIRE ui ment LADDER TRUCK AND AWARD OF CONTRACT Surplus Fire Engine (K) AUTHORIZATION TO SURPLUS 1979 HENDRICKSON FIRE ENGINE Item B: Approval of City Council Meeting Minutes of September 14, 1998 Schedule proval of COUNCIL PRESIDENT HAAKENSON MOVED, SECONDED BY COUNCILMEMBER 1 i 14 PLUNKETT, TO REQUEST THE MINUTES BE REVIEWED FOR A POSSIBLE INACCURACY nutes in AND HAVE THEM RESUBMITTED ON OCTOBER 6. MOTION CARRIED. o Weeks 3. PROCLAMATION FOR DAY OF CONCERN FOR THE HUNGRY Proclama- tion for Day of Concern Mayor Fahey explained a Seattle -King County based organization requested the City consider for the participation in this effort to collect food for the hungry to be distributed throughout the greater Seattle Hungry area. Organizations in Snohomish County who participate by collecting food can opt to donate it to local food banks or feeding programs in South Snohomish County. She said a high school group collected food at the Westgate Albertson's last year although the City was not a participant in the Day of Concern for the Hungry last year. Mayor Fahey read and presented a proclamation declaring September 26, 1998, as Day of Concern for the Hungry in Edmonds and encouraged everyone to generously contribute to the food drives taking place that day. Mayor Fahey explained Governor Locke has issued a proclamation for Day of Concern for the Hungry statewide and many mayors throughout the area are issuing similar proclamations. She encouraged everyone to contribute as generously as possible. Wheel 4. CONSIDERATION OF PURCHASE OF FOUR -WHEEL DRIVE UNIT FOR THE FIRE Drive Unit DEPARTMENT for Fire Department Assistant Fire Chief Kevin Taylor explained the Fire Department needs a four -wheel drive vehicle. on an everyday basis as a command unit (Edmonds is one of the last Fire Departments operating their command units from cars which lack adequate space). During emergencies and adverse weather, a four - wheel drive command vehicle allows medical/injury patient transport during snow conditions and allows personnel to reach calls. He said two years ago, during severe winter storms, private vehicles were utilized to reach calls and an aid car carrying a patient was stuck on Main Street for five hours with staff Edmonds City Council Approved Minutes September 22, 1998 Page 2 unable to reach it. He said although one four -wheel drive vehicle is included in the 1999 budget, one will not be enough. The Fire Department would like to have a four -wheel drive unit purchased and placed in service prior to the winter season of 1998. Assistant Fire Chief Taylor displayed slides of similar vehicles utilized by neighboring cities. Interim Fire Chief Ron Haworth explained the Fire Department reviewed the equipment replacement schedule with the Finance Department and determined by removing equipment that was surplus and not intended to be replaced, there is a beginning cash balance at this time of $548,000; throughout the balance of the equipment replacement schedule and replacing equipment as scheduled, there is a balance of $472,000. He noted there is a transfer into the account from the General Fund of $1,800,000 during the life of the replacement schedule. He said there are sufficient funds available within the schedule, noting it was reviewed and accepted at the Council retreat in January 1998. He requested the Council approve the purchase of the vehicle and consider it an emergency purchase which allows them to move forward with a request for proposals rather than a lengthy bid process, which may delay the acquisition of the vehicle so that it is not available during the expected adverse weather. He said the successful bidder for the State contract last year who has rebid this year (and believes they will be the successful bidder) quoted the City the $29,000 price range and indicated delivery for a vehicle ordered from the factory takes approximately 60 days. The price of the vehicle increased slightly from last year; the price is estimated to be $29,000. The base price is $27,000, the engine and transmission increase the price to $29,000. For Councilmember Van Hollebeke, Interim Fire Chief Haworth said the vehicle being considered is a Ford Expedition LXT. This unit will accommodate a stretcher by folding forward the right front seat. Some other vehicles will not accommodate a stretcher, and transport during adverse weather is an important, desirable feature. Councilmember Van Hollebeke asked if the Chiefs automobile would be surplused. Chief Haworth answered no and said the Fire Department is short one vehicle at this time. The Inspector is currently using the command vehicle (a large van) which is difficult to maneuver and park in the City. Councilmember Earling appreciated the investigation of the vehicle's price, noting the first price presented to the Finance Committee was approximately $42,000. He thanked Councilmember Nordquist for determining the City of Everett found a suitable vehicle for considerably less money. Councilmember Earling inquired about the $1 million transfer from the General Fund. Chief Haworth explained that is over the life of the equipment replacement schedule. He pointed out this was not an increase over the previous proposal presented to the Council and is actually a slight decrease. Accounting Manager Doug Farmen explained the transfer was as Administrative Services Director Art Housler presented at the Council retreat. He said they tried to maintain that amount due to the General Fund activity that will be occurring as well as the repayment of the library bonds in 2001 which will make additional funds available in that year. Council President Haakenson observed the agenda memo indicated funding was available in the 005 Fire /Aid Vehicle Reserve Fund which has a balance of $468,000 at this time with $100,000 anticipated to be expended for equipment for the recently ordered Quint Fire Apparatus. He asked if there were any other expenditures from the fund in the near future. Interim Fire Chief Haworth answered the next purchase from this fund would be an aid car in 2002, followed by aid car purchases in 2003 and 2004. At that time, and if everything progresses according to plan, the fund would be reduced to $365,000, the Edmonds City Council Approved Minutes September 22, 1998 Page 3 lowest the fund balance will go. Council President Haakenson asked if there would be any expenditures from the 005 Fund in the next two years. Chief Haworth answered no. Council President Haakenson commented that during the last year, funding for approximately 10 items has been tied to the retirement of the library bond. He recommended "something in writing" be presented for the Council to focus on as all ten items cannot be funded with the retirement of the library bonds. Interim Fire Chief Haworth said when this proposal was first developed, the request was for $45,000. At this time, the vehicle will be in the $30,000 range, although additional funds will be required for a radio, lettering, cabinetry, lights, etc. He said the vehicle cost for the proposal was $35,000 - $36,000 range. Mayor Fahey observed the audience did not have the equipment replacement schedules that were included in the Council packet. She asked if the "special vehicle" listed in the replacement schedule was the four -wheel drive vehicle being proposed. Chief Haworth answered yes and said the estimated $41,400 will be sufficient to purchase and equip the vehicle. Mayor Fahey observed the replacement schedule indicated $50,000 was transferred from the General Fund this year and transfers into this fund are projected for the next few years to cover the leases until the equipment is paid for. Interim Fire Chief Haworth agreed. Mayor Fahey pointed out the equipment replacement schedule was recently modified to reflect the deletion of a replacement truck in the future. Councilmember White inquired about the 60 -day delivery delay. Interim Fire Chief Haworth said the 60 days is calculated from the date of order. Councilmember White asked the amount of time necessary to equip the truck after delivery. Interim Fire Chief Haworth said most of the items for the vehicle could be purchased in advance. He estimated it could be outfitted and complete within two weeks. For Councilmember White, Interim Fire Chief Haworth said the bidding process would extend the purchase at least 30 days due to the requirement to advertise twice, followed by bid opening, and Council approval of the bid award. Councilmember Miller asked if consideration was given to purchasing a one -year old vehicle from Hertz or Avis to allow immediate delivery. Interim Fire Chief Haworth answered yes, Avis indicated they could pull a vehicle of this type from their fleet, usually with less than 16,000 miles on it, and deliver it within 48 hours. He said the problem is such a vehicle may not have the seat type needed to accommodate a stretcher, which may necessitate purchasing new front seats for the vehicle. Councilmember Miller asked the price difference between purchasing a one -year old program vehicle and a new vehicle. Interim Fire Chief Haworth said a 1998 vehicle is priced at $27,000, not a significant price difference for a vehicle that may not have the equipment desired. He explained the Fire Department wants a vehicle with a positraction differential which a program vehicle may not have; installation of a positraction differential would cost approximately $750 - $1,000.' He was not certain the purchase of a used vehicle would save anything other than time. Councilmember Nordquist said when this proposal was made to the Public Safety Committee, the vehicle was estimated to cost $45,000. Councilmember Nordquist said he found the City of Everett purchased their vehicle for $26,000 via the State contract and a $3,000 increase in 1999 was not significant. Edmonds City Council Approved Minutes September 22, 1998 Page 4 However, discussion at the Public Safety Committee indicated the vehicle would go home with the Assistant Fire Chief each night. Councilmember Nordquist questioned how this could be declared an emergency purchase if it was used as a vehicle to take home. Interim Fire Chief Haworth said in the event of a bad snowstorm, the vehicle would be left in the City and not be taken home. He said the Assistant Fire Chief is the primary command officer in the Fire Department who responds to all major incidents within the City; the vehicle will be equipped for that purpose and accommodate his response in a much better manner than the vehicle he currently utilizes. Councilmember Nordquist asked if the City Attorney had been contacted regarding the emergency purchase, recalling in previous years that was not favored. Councilmember White said he asked City Attorney Scott Snyder to consider this issue because of a recent case when the Forest Service made a similar purchase without making Findings of Fact of an emergency that was overturned by the court. He explained the law requires the City make a finding of an emergency based on specific facts, which thus far have not been presented. He recommended this be discussed further with Mr. Snyder who was not present tonight i Interim Fire Chief Haworth explained they were not prepared to make a presentation regarding the weather but have been notified within the last 30 days that a 200 year snow storm and weather conditions are iexpected in the Puget Sound this winter. The request to purchase this vehicle is based on those facts. He said Assistant Fire Chief Taylor and other City staff attended a meeting with Snohomish County to discuss the anticipated weather conditions and what Snohomish County is preparing for. The Fire Department felt it was prudent to request an emergency be declared for the purchase of this vehicle to ensure it is available in the event of a snowstorm. He said the documentation from that meeting could be provided but no documentation was available this evening. Mayor Fahey asked if any information regarding the meeting with Snohomish County was presented to they Council committee. Councilmember White answered no and said he requested facts supporting the proposal be available when this was presented to the full Council; particularly if it was to be declared an emergency. He stressed the Council needed those facts as they could not simply say an emergency exists without facts to support it. He suggested facts be presented and the issue placed on the Consent Agenda next week. Mayor Fahey noted the Council did not meet again until October 6. Mayor Fahey said she did not have the understanding that information regarding the emergency was necessary. She explained the City has been notified by the Federal Emergency Management Agency as well as ESCA and various staff have attended meetings to forewarn the City of potential storms predicted to arrive as early as mid - November. She explained City staff met this morning to discuss the City's Emergency Operations Center and will meet later this week to discuss how to get City employees to work to ensure the City remains operational and how to distribute information to citizens to ensure they are adequately prepared to meet temporary emergencies. She said predictions are that the storms will be worse than those that occurred two years ago. A complete presentation regarding additional preparation that is being done by the City is planned for October 6. Assistant Fire Chief Taylor said, at the request of Council President Haakenson, the La Nina report presented at the conference (which he and Public Works personnel attended) was provided to each Councilmember and could be added to the record to provide the documentation. He explained the report indicates there is an 80 % -90% chance of an extremely severe winter and 100% chance of this being the third coldest winter. Edmonds City Council Approved Minutes September 22, 1998 Page 5 Council President Haakenson said following at least three SnoCoin meetings with predictions for this winter's weather, he asked Interim Fire Chief Haworth to provide information from the conference, which was included in the Council packet tonight. Council President Haakenson said he also asked Public Works Director Noel Miller to provide a presentation. However, much of the information Mr. Miller would have provided is included in the report. Council President Haakenson said he was comfortable with the amount of information available at this time and asked if any additional information was available. Assistant Fire Chief Taylor answered the report compiled all the information and presentations from the climatologist; they are confident it will be cold and include accumulative snowfalls. Council President Haakenson clarified the climatologist was 90% certain these conditions would occur. Council President Haakenson asked Assistant Fire Chief Taylor to review the report for the audience. Assistant Fire Chief Taylor reported the Street Supervisor and he attended the Snohomish County Department of Emergency Management conference on the La Nina winter conditions. He explained there have been seven of these conditions since WWII, the last one in 1989 - different weather conditions, same results. He explained this occurs as the extreme El Nino warmth at the Pacific equatorial regions becomes cloud covered. NOAA monitored conditions with a series of satellite networked buoys and determined the current temperature of the Pacific at a 100 -foot depth is 12 degrees colder than normal years. As the warm bank of the Pacific is what maintains a temperate climate in the winter, this will not occur this year. The climatologist says an extremely cold winter can be predicted 18 -24 months after an El Nino. He explained some places in the county experienced 36 inches of accumulative snow in 1989, the prediction is for twice as much snowfall. The weatherman's opinion for this winter is "a 100% chance of being in the 33% coolest winters you've ever experienced and 80 % -90% chance of this being a very cold winter with accumulative snowfalls without melting in December and January." Overall temperatures will be 3 -5 degrees below normal on average and at the end of the snow season, there will be hail, sleet, and freezing rain and possible severe windstorms with gusts up to 80 mph. Assistant Fire Chief Taylor said the conference also included presentations from law enforcement personnel in eastern Washington who experience these conditions every year. He said the Fire Department has "geared up" by accumulating six days worth of food in each station for Fire Department personnel as well as this request for a four -wheel drive vehicle. Councilmember White said with those facts in the record, the Council would have enough information. Councilmember Nordquist read RCW 35 33 091, Emergency Expenditures, Other Emergencies: "If a public emergency could not have reasonably be foreseen at the time of filing the preliminary budget, requires an expenditure of money not provided for in the annual budget, and if it is not one of the emergencies specifically enumerated in RCW 35.33.081 (casualty, riot, insurrection, war, violence), the city or town legislative body, before allowing any expenditure, therefore shall adopt an ordinance stating the facts constituting the emergency and the estimated amount required to meet and declaring that an emergency exists. Such ordinance shall not be voted on until five days have elapsed after its introduction and for passage shall require the vote of one more than the majority of all members of the legislative body of the city or town. Any tax payer may appear at the meeting at which the emergency ordinance is to be voted on and be heard for or against the adoption thereof." Councilmember Miller pointed out if funding was available in the fire'apparatus budget, the purchase was not an emergency appropriation but an administrative decision to purchase the vehicle which he felt was not outside the RCW for emergency appropriation. Edmonds City Council Approved Minutes September 22, 1998 Page 6 Councilmember Van Hollebeke said it appeared there were three issues, (1) does the Council approve, in concept, of the purchase of this vehicle at the stated price; (2) how can the Council proceed - if the Council approves of the purchase, they should be able to authorize the Mayor to move forward if the City Attorney believes it is not under the emergency provisions in the RCW but rather an administrative decision; and (3) if an emergency ordinance (and process) is required, the Council could instruct the City Attorney to present the ordinance at the October 6 Council meeting. Councilmember Van Hollebeke said it would also be prudent to investigate the possibility of a program car, which would allow the purchase on nearly an immediate basis eliminating the 60 -day delay. Councilmember Earling expressed concern with saving $2,000 to purchase a vehicle with 16,000 miles on it; he preferred a new vehicle. He suggested Council President Haakenson determine the best course of action with the Mayor, City Attorney, and the Finance Department which could include a special meeting on September 29 or other resolution Council President Haakenson determines appropriate. COUNCILMEMBER NORDQUIST MOVED, SECONDED BY COUNCIL PRESIDENT HAAKENSON, TO APPROVE THE PURCHASE OF A FOUR -WHEEL DRIVE VEHICLE SUBJECT TO THE CITY ATTORNEY'S APPROVAL OF EXPENDITURES OF THE FUNDS NOW EXISTING IN THE FIRE DEPARTMENT BUDGET. IF THE CITY ATTORNEY DETERMINES IT IS AN EMERGENCY, TO PROCEED WITH THE APPROPRIATE RCW PROCESS AND PROPER DOCUMENTS AT THE OCTOBER 6 COUNCIL MEETING. Councilmember Earling pointed out not enough of the potential problems that could have arisen with this action were well thought out. He expressed frustration with the process and said if the appropriate research had been done, less time would have been required to review this item. MOTION CARRIED. Zoning 5.. REPORT ON STATUS OF ZONING ISSUES FOR NON - CONFORMING SITES issues for O°- Planning Supervisor Jeff Wilson said the purpose of this item was to address comments made during the Conforming audience portion of the September 14 Council meeting. The comments received that evening indicated Sites p p g• g that the Planning Division recommended at the August 26 Planning Board meeting that the Comprehensive Plan land use designations for the old Woodway Elementary School and the Restlawn Cemetery site be amended to change their current designation of Single Family (RS) to a Public (P) designation. Mr. Wilson clarified that at the August 26 Planning Board meeting, the City began initiation of its annual amendments to the Comprehensive Plan. During that process, the text portion of the Comprehensive Plan as well as the land use designations on the Land Use map are considered. Since amendments to the Comprehensive Plan can be done only once a year, staff incorporates requests from individual property owners, areas identified (via Council meetings, hearings, and/or deliberations) that require review of the Comprehensive Plan, and areas of inconsistency between the actual use and the Comprehensive Plan designation as identified by staff. He said all these issues were compiled and presented to the Planning Board in a study session format with the explanation these are areas to be considered as part of the amendment process. These included two requests from individual property owners, sites in the Westgate corridor and at the corner of 95TH and Edmonds Way that Council directed staff to include in the annual amendment process for further discussion, and the old Woodway Elementary and the Restlawn Cemetery sites where there are very identifiable inconsistencies between the current use of the property and the Comprehensive Plan designation. Edmonds City Council Approved Minutes September 22, 1998 Page 7 Mr. Wilson said the information presented to the Planning Board was included in the City Council's packet; the chart indicates the site and the request (the issue to be considered). Staff explained the cemetery property is being used as a cemetery in a Single Family zone that is zoned Single Family in the Comprehensive Plan. However, as the Planning Board discussion indicated, it is a non - conforming use that cannot be easily remedied even with an amendment to the Comprehensive Plan designation to Public (P) as it was not appropriate for a privately owned cemetery. Mr. Wilson explained cemeteries are not permitted in the RS zone, either as a permitted use or through a Conditional Use Permit., As a non- conforming use, the property would have severe restrictions if the property owners wished to make any changes to the site. As was explained to the Planning Board, even if an amendment to the Comprehensive Plan was considered, there is no apparent solution; the only one that could be considered would be a commercial designation that permits all uses but is not a reasonable solution to this problem. Therefore, staff indicated that although there are problems with the current designation, it would be best not to change the designation until the community facilities code amendments are considered by the Planning Board (in the near future). Staffs indication regarding the old Woodway Elementary School site was that there is a significant inconsistency between the use of the site and the current zoning and Comprehensive Plan land use designation. He pointed out the old Woodway Elementary School site is also a non - conforming use created by its location on a non - collector /arterial street. Further, there is a question whether the site is being used as an elementary school as is permitted through the Conditional Use Permit process in a Single Family zone when located on a collector or arterial street. The cover memo to the Planning Board identified the problem and indicated the solution may be addressed by future deliberation on code amendments for community facilities. Staffs recommendation to the Planning Board was to postpone consideration of amendment to the Comprehensive Plan until they were able to complete their review of the community facilities regulations for the Single Family zone. Mr. Wilson summarized the purpose was to acknowledge there are sites within the City where there are problems and inconsistencies and to allow the Planning Board to determine whether to pursue an amendment or postpone it until a later time. The Planning Board's discussion indicated they felt it best to postpone consideration of an amendment to the Comprehensive Plan this year until the process of reviewing the zoning regulations regarding community facilities is completed and, if necessary, a change can be considered during the 1999 or 2000 Comprehensive Plan update. Mayor Fahey explained this clarification was provided in response to comments provided during audience comment to ensure the public was aware the indicated sites are being analyzed before any action is taken. elf - Insurance 6. REPORT ON SELF INSURANCE HEALTH BENEFIT FUND Health Benefit Councilmember Van Hollebeke, who serves on the Self- Insurance Health Benefit Committee, explained Fund a year ago the City chose to self - insure health, dental, prescriptions, and vision care for employees. After a lengthy process, the Charles Group was selected, who specializes in self insurance and also represents several other municipalities. By self - insuring, the City hoped to 1) determine their own type of medical plan, and as time passed, further refine the medical plan by including benefits that would enable employees and their families to have health benefits most important to them (i.e. preventative care), and 2) to realize an appreciable savings. He said because the City was previously a member of the AWC plan, health/claims histories were not available for employees to assist in making a historical determination of future expectations. He said the estimates were established with the assistance of Safeco as well as Georgia LaBelle, Human Resources Analyst, who has a personal knowledge of the Edmonds City Council Approved Minutes September 22, 1998 Page 8 City's employees and families. Unfortunately, the substantial savings anticipated was not realized due to several rather tragic experiences during the 12 -month period when claims for at least three people were abnormally high, one whose claim exceeded $100,000. In order to prevent the City absorbing that expenditure, a stop loss provision was purchased from Safeco both for individual claims (over $40,000 during the year) and an accumulative stop loss. Councilmember Van Hollebeke commended the members of the Self Insurance Health Benefit Committee, Human Resources Director Brent Hunter, Police Sergeant Ken Jones, Fire Lieutenant Patrick Hepler, Accounting Tech/Payroll Karen McKay, Lead Mechanic Dave Sitauer, and Public Works Director Noel Miller. Councilmember Van Hollebeke referred to the Self- Insured Health Benefit Program cost graph, which includes revenues (premiums of $112,000 - $113,000 per month), claims, and the account balance. The Committee felt this year was an unusually bad year for claims and felt by fine tuning the program, the City should continue with the self - insurance program for the next 12 -month cycle. Councilmember Van Hollebeke said the Committee felt they had two options, 1) fine tune with the self - insurance program and make it what was originally desired (a good plan for employees and their families and the opportunity to design it in a way that suits the employees needs), or 2) return to the group plan. He said if the City continues with self - insurance for another year, a decision can be made at next year whether to continue or return to the AWC plan or to an independent plan. The Self Insurance Health Benefit Committee proposes the City continue with self insurance with several fine tunings. Human Resources Director Brent Hunter displayed the Self- Insured Health Benefit Program Cost Projections chart, pointing out the projected revenue budget for 1997 -1998 was anticipated to be $1,295,000. Anticipating good cash flow, it was projected the revenues would earn interest. However, claim submittals were higher than anticipated which reduced the cash flow and affected interest. He pointed out the amounts of aggregate ($124,000) and specific stop ($95,000) loss funds provided by Safeco and said claims were originally estimated to be $840,000 but were actually $1,276,000. Therefore, the Committee recommends a rate increase of 13 %. He said the program will end the year with a balance of $115,000 which he recommended be held over for reserve for next year. There is a WAC requirement that the City have a 15% reserve to cover claims submitted if the self - insurance program were to be discontinued in the future. Councilmember Van Hollebeke said there was a time during the last year when it was believed premiums would have to be increased appreciably to. cover anticipated increased costs; however, the Committee decided to, with the assistance of the Charles Group, change the provider network from First Choice to Regence. By circulating the list of Regence providers to many employees, they discovered almost all providers in First Choice are also in Regence and Regence is a much broader network. Utilizing the Regence network benefits the program economically because networks negotiate a price for services delivered with the providers and Regence has the most competitive (lowest) payment to providers which saves the City money. Having a broader network, more of the City's employees and dependents will utilize the network and the City realizes larger savings when a provider within the network is utilized. Another prescription network has been selected that charges a lower fee resulting in significant savings but not diminished benefits. Councilmember Van Hollebeke explained some changes in the stop loss coverage were also made to achieve a $10,000 savings. The only increase to the cost of claims results from the Committee's recommendation to add a preventative care benefit. Although the addition of the preventative care benefit increases the premium slightly, it was felt it was an important addition. He said usually the self - insurance program would be part of the 1999 budget; however the self - insurance program contract runs Edmonds City Council Approved Minutes September 22, 1998 Page 9 October 1 to September 30. In view of the excessive claims this year, the Committee felt it was not advantageous to have a 15 -month contract. The City Attorney said the Council's approval of the Committee's recommendations would allow the City to contact with Safeco and fund the increased cost during the budget process. Councilmember Nordquist commented that the increases have a different affect on Public Safety Department employees than on other City employees. Councilmember Van Hollebeke agreed. For Councilmember Nordquist, Mr. Hunter replied there was a 13% increase in medical, dental, and optical. Councilmember Nordquist said AWC, who provided coverage for the City employee's last year, indicated they would have a total 13% increase. Mr. Hunter said the rates City employees are currently paying are 1997 rates; AWC raised their rates 3% for 1998. This year AWC is increasing their medical 10.5 %, dental 3.5% and vision 0 %. Councilmember Nordquist pointed out it may be troublesome to employees who receive a 3% increase and find their medical coverage is increasing 13 %. Councilmember Nordquist said when the City changed to the self - insurance program, savings of $100,000 was anticipated. Mr. Hunter said a savings of $162,000 was projected for the first year. Councilmember Nordquist asked if $50,000 would be placed in a catastrophic fund for LEOFF 1 as recommended by the Finance Company. Mr. Hunter said payment of LEOFF 1 claims were lower than anticipated this year. He recommended the entire $115,000 balance the program will end with be carried over into the next year because it is needed for reserves. Councilmember Nordquist said when the program was proposed, $50,000 was to be placed in the LEOFF 1 benefit and $50,000 would go back to employees. Mr. Hunter said the recommendation was to retain the $115,000 for reserves, but the Council could decide otherwise. Councilmember Nordquist commented the Finance Committee worked- hard to establish the catastrophic fund and the firefighters on LEOFF 1 are getting older so that fund needs to be built up soon. Councilmember Van Hollebeke said the Committee is acutely aware of this. He noted there was an unusual spike in the self insured benefit expenses this year but it is anticipated future years will result in savings. Councilmember Van Hollebeke said the LEOFF 1 employees are still relatively young and the bigger claims are not typically seen for individuals of the age the majority of LEOFF 1 employees are now. He said there are several ways to fund LEOFF 1 -- an emergency fund that can be built up as well acquiring long term insurance in the future. He said the City's unions discussed the rate increase with their members and although there will not be unanimous approval for the increase, the Committee recommended the increase unanimously and the Finance Committee agreed to support the recommendation as well. He requested the Council authorize the continuance of the self - insurance program and authorize the Mayor to sign the contract with Safeco for the stop loss provisions. Councilmember White asked if this action included the change from First Choice providers to Regence. Councilmember Van Hollebeke said yes as well as changing the prescription plan, modifying the stop loss provisions, and adding the preventative care benefit. Councilmember White asked if the dispute between the Insurance Commission and Regence over pre - authorization of services had been investigated. Dick Charles, The Charles Group, answered Regence is not the risk barer, the City is merely renting their network, exactly as Boeing does. This eliminates the utilization review, etc. This will be nearly invisible to the employees but the City will realize savings in claim costs by renting Regence network. He said the Regence network is only available to the City as the administrator of the City's program owns it. Mr. Charles explained the City would experience a bad year every 3 - 4 years. It is hoped this was the bad year and the coming year will smooth out. He noted Edmonds City Council Approved Minutes September 22, 1998 Page 10 AWC's rates are increasing 10 %, Group Health rates are increasing 12 % -13% so the recommended rates are similar to where the City would have been. Councilmember Earling agreed the Finance Committee (he and Councilmember Miller) supported continuing with the self - insurance program for another year. Both he and Councilmember Miller shared the hope that two consecutive unusual years do not occur. He asked City Clerk Sandy Chase to have a review of the self - insurance program presented to the Council on a quarterly basis. COUNCILMEMBER EARLING MOVED, SECONDED BY COUNCILMEMBER MILLER, FOR THE RECOMMENDED ACTION (AUTHORIZE THE CONTINUANCE OF THE SELF - INSURANCE PROGRAM AND AUTHORIZE THE MAYOR TO SIGN THE CONTRACT WITH SAFECO FOR THE STOP LOSS PROVISION). MOTION CARRIED. SCENT 21 6A. DISCUSSION OF ASCENT 21 AS IT RELATES TO THE BENEFIT FOR THE CITY OF EDMONDS Community Services Director Paul Mar explained. Councilmember Van Hollebeke requested this update be provided to the Council. He distributed and displayed information regarding the ASCENT 21 ballot measure, funding, and Edmonds' share. He explained there are five ballot measures with total funding of $599 million. Of that total, $409 million is for 99 high priority regional projects. The remaining $190 million is for local projects for each jurisdiction within the County. Approximately two years ago, a coalition of Snohomish County citizens committed to solving today's problems and building a foundation for a safe and well functioning community for the future. He said this ballot issue is only for Snohomish County. Mr. Mar explained the primary means of funding these projects is local taxpayers and users of the capital resources. With the projects that emphasize quality of life improvements, there are opportunities for both local and regional projects. He said when ASCENT 21 began, six goals were established, five of which would be achieved with these ballot measures. These goals were (1) catch up due to recent business and population growth in Snohomish County and provide the needed infrastructure to meet future planned growth; (2) develop a County-wide transportation system to meet the levels of service and be synchronized with the systems in place with Washington State Department of Transportation, RTA, Community Transit and Everett (this goal was met by projects in Vote 1 and 2); (3) develop parks and'open space for passive and active recreation and preservation sites for future development (this goal is meet by projects in Vote 3); (4) address surface water problems County-wide including storm water plans and facilities, habitat and riparian corridor for preservation and restoration and to link these projects with recreational opportunities (this goal is achieved by projects in Vote 4); (5) enable water sewer systems to make improvements that provide significant regional environment and capacity benefits (this goal is met with projects in Vote 5); and (6) enhance the community's ability to provide adequate criminal justice facilities, schools, housing, and other infrastructure needs throughout the County (not included in the final ASCENT 21 proposal). Mr. Mar explained ASCENT 21's fist strategy was to identify the specific projects in these areas via input from a large number of jurisdictions including the City of Edmonds. The final project list reflects the 99 highest regional projects based on available funding and need. The next part of ASCENT 21's strategy was to develop a mechanism to distribute substantial funding to localities for supporting neighborhood infrastructure improvements which is the purpose of the local allocations based on population and contribution of property tax. ASCENT 21's third strategy was to delineate funding Edmonds City Council Approved Minutes September 22, 1998 Page 11 sources at both the local and state level plus ask Snohomish County tax payers to levy taxes identified in the plan (as shown in the chart). Mr. Mar explained Proposition 1 is $345 million which includes $275 million for regional projects, $70 million for local projects, via General Obligation Bonds funded by an excess property tax levy at $0.85 per $1,000 of assessed valuation. A 60% favorable vote is required for passage of this ballot issue. Proposition 2 is $60 million for local transportation projects which will be funded by local options motor vehicle tax at $.023 per gallon of fuel sold within Snohomish County. A 50% favorable vote is required for passage of this ballot issue. Proposition 3 is $40 million for regional parks and recreation facilities funded via a property tax levy lid waiver at $0.10 per $1,000 of assessed valuation. A 50% favorable vote is required for passage of this ballot issue. Proposition 4 is $30 million for conservation area programs including surface water enhancements, open space, and low intensity recreation funded via a Real Estate Excess Tax of .41% of real estate sales within Snohomish County. A 50% favorable vote is required for passage of this ballot issue. Proposition 5 is $24 million for regional water sewer system projects funded by a property tax levy lid waiver at $0.06 per $1,000 assessed valuation. A 50% favorable vote is required for passage of this ballot issue. Mr. Mar said included in Proposition 1 are $10 million for the Edmonds Intermodal (Edmonds Crossing), bike lane improvements for Mountlake Terrace, Lynnwood, and Edmonds ($166,667 or one - third of $500,000), and $5.3 million for local CIP projects. Of the total $345 million in Proposition 1, Edmonds receives $15 million or approximately 4.5 %. Included in Proposition 2 is $3.09 million for local road improvements or 5.15% of the total. Proposition 3 includes $8 million for the Edmonds Aquatics Center or 20% of the total. Proposition 4 includes $2.26 million for Edmonds park and open space projects or 1.74% of the total. There are no projects in Proposition 5 for Edmonds. In summary, of the $599 million provided if all five ballot issues are successful, Edmonds would receive approximately $29 million in funded improvements or slightly less than 5% of the total Snohomish County benefit. He stressed $10.6 million of that total is for locally administered projects which will be determined at the City's discretion. Councilmember Van Hollebeke acknowledged it was difficult to ask citizens to increase their taxes. He commented Seattle's Forward Thrust ballot measure 30 years ago allowed Seattle to prevent water pollution, clean lakes and streams, build recreational facilities, etc. He pointed out the ASCENT 21 brochure states "It's not too late to save our quality of life in Snohomish County." He observed some of the primary items that have come before the Council since he was elected have been a desire for more street improvements, ballparks, recreation areas, sidewalks in neighborhoods, creating open space, and preserving water and streams. He stressed the ASCENT 21 ballot measure allowed the City to accomplish many of these requests. There are also a number of Edmonds - specific projects in the ballot measure including $10 million for the Edmonds Intermodal project and $8 million for the Edmonds Aquatics Center. More importantly, this ballot measure provides an additional $11 million to fund road improvements and other discretionary projects. He urged the citizens of Edmonds and Snohomish County to visualize the benefit of this ballot measure and understand it is an opportunity to anticipate problems before they become so expensive that resources are not available to address them. He requested Council President Haakenson schedule a resolution in support of the ASCENT 21 ballot issue for October 6, noting a public hearing is necessary. Councilmember Earling said there were several ballot issues for Forward Thrust, some of which passed and some failed. If a resolution was presented to the Council, he hoped the propositions would be separated and each examined on its own merits. He supported some of the propositions but not others Edmonds City Council Approved Minutes September 22, 1998 Page 12 and, did not want the resolution presented for all five propositions. He said some Councils who have declared their non - support of the entire ballot issue should have separated the issues and stated their support for each individually. He also requested further information that would provide a thorough analysis of the tax increase for a typical household in Snohomish County or Edmonds based on an average house price of $200,000. Councilmember Van Hollebeke said the ballot issues were drafted by ASCENT 21 so that voters could make a decision on each measure. Rather than the Council endorsing some measures and not others, he suggested the Council endorse the overall concept and trust the voters to choose the ones they wanted to fund. Although he did not object to separating the issues to indicate the cost to a typical household of each item, he felt it would be inappropriate for the Council to give direction on any one of the ballot measures. He noted the requirement for a 50% favorable vote for passage was a unique feature of these ballot issues. Councilmember Plunkett appreciated and shared Councilmember Earling's concern but supported Councilmember Van Hollebeke's suggestion to bring this issue to the Council for discussion and a vote on the package. Council President Haakenson said if a majority of the Council wanted a public hearing and a recommendation, then it would be scheduled. However, he felt the Council was providing direction by indicating support for the entire package. He agreed with providing as much information as possible to educate citizens. He said he would not schedule a hearing on October 6 as a lengthy hearing is already scheduled for that evening. Councilmember Van Hollebeke said the public will vote on this issue November 3 but because there are an increasing number of voters who vote via absentee ballots, he was concerned with delaying the hearing beyond October 6. He said his primary concern was to provide information to educate the public. Councilmember Miller supported a presentation regarding how each proposition benefits the City but not a Council vote on the overall package. Councilmember Nordquist said citizens have expressed a desire for more information. He agreed with providing the public more information without the Council making a recommendation. Council President Haakenson said there would be an opportunity for such a presentation on October 20. This was acceptable to the Council. Councilmember Earling supported the concept of a presentation along with an estimate of the cost to a typical household. Mr. Mar said staff would not be able to identify the projects that would be funded, for example, by the $3.09 million in Proposition 2. Councilmember Miller recalled a Rotary presentation that described the Edmonds Aquatic Center as well as regional roadway improvements that will be funded in Edmonds. Mr. Mar asked if Council wanted an ASCENT 21 representative to make this presentation. Councilmember Van Hollebeke preferred staff describe any specific projects as well as the types of projects that can be funded by the discretionary funds. Council President Haakenson said he has attended several ASCENT 21 presentations and would prefer to hear a presentation from staff rather than a description of overall nature of the funding provided by ASCENT 21: Mayor Fahey said, as a participant in the ASCENT 21 package from the beginning, she might be able to provide some additional information. She said the whole concept was to tie the funding into local communities' CIPs. She said staff could identify projects in the City's CIP that did not have adequate funding. She noted one of the concepts of ASCENT 21 was to provide funds to allow the City to access other funds. Edmonds City Council Approved Minutes September 22, 1998 Page 13 Councilmember Earling questioned whether an opposition position would be required if ASCENT 21 made the presentation. He agreed staff could provide much of the information that the Council desires. Mr. Mar agreed to work with Mayor Fahey and staff to develop information for a presentation on October 20. Council President Haakenson clarified there would be no recommended action by the Council at the conclusion of that presentation. 7. MAYOR'S REPORT Mayor Fahey asked the Council to confirm the appointment of Debbie Onishi to the Sister City Commission. She explained Mrs. Onishi and her husband, Phil, recently returned from Hekinan where Mr. Onishi was a teacher for the past year. In addition, Mr. Onishi is of Japanese decent and knows a great deal about the Japanese culture. One of the reasons they chose to live in Japan for a year was to expand their knowledge of the Japanese culture and to learn_about Edmonds Sister City relationship with Hekinan. to - � ent COUNCILMEMBER NORDQUIST MOVED SECONDED BY COUNCILMEMBER VAN nt to Sister City HOLLEBEKE, TO APPOINT DEBBIE ONISHI TO THE SISTER CITY COMMISSION. Comm. MOTION CARRIED. S.A.V.E. Mayor Fahey updated the Council on the rally sponsored by the S.A.V.E. group from Madrona School. Rally She recalled the S.A.V.E. group provided a presentation to the Council regarding their efforts to encourage alternative responses to violence occurring in schools and ways to bring about peaceful dispute resolution. She said the group has had numerous meetings at Madrona School and are planning a rally on October 8 to which students throughout the Edmonds School District have been invited. The group originally planned a march culminating in a rally; however they have developed an alternate plan as a result of working with Renee McRae, Parks and Recreation, and Mike Blackburn, Youth Services. The rally will take place from 11:15 a.m. to noon on October 8 at the Civic Center Stadium. It is anticipated students from throughout the School District will participate but participation is voluntary. Mayor Fahey indicated she would be making some comments as would Dr. Torrens and the diversity dance group will provide entertainment. She commended Ms. McRae for her efforts in working with the students to plan an event that will address the students' position to preserve a quality of life in the school community and encourage non - violent activities. Mayor Fahey reported that October is Violence Response month; there will be activities and events throughout the month related to violence in society. The S.A.V.E. group urges the City Council and the community to support the rally and attend if possible. Speaker Mayor Fahey advised the Youth Services Unit is sponsoring Mr. Milton Creagh who made presentations Sponsored to Edmonds School District Students last year. He will give a presentation at Mountlake Terrace High by Youth Services School on Monday, September 28; at Edmonds-Woodway High School on Tuesday, September 29> at Unit Lynnwood High School on Wednesday, September 30; and Meadowdale High School on Thursday, October 1, all at 7:00 p.m. Parents and the community are encouraged to attend his presentation. He makes a profound impact on teens and preteens in the community. Funding is provided primarily through the Police Foundation, funds raised by the Youth Challenge, and support from Stevens Hospital. Selection 8, INDIVIDUAL COUNCIL REPORTS/UPDATES ON RESPECTIVE BOARD MEETINGS rocess for ew ire tors Council President Haakenson distributed a memo regarding the selection process for new directors. The City will soon begin the selection process for three director -level positions, Development Services Director, Administrative Services Director; and the Fire Chief. Although the process of using a panel of Edmonds City Council Approved Minutes September 22, 1998 Page 14 stakeholder interviewers to screen the top candidates down to the finalists who are then referred to the Mayor for her final choice has worked well in the past, Mr. Hunter would like to add another step to improve the information used to screen the candidates. The additional assessment tool is a commercial test, Preview Assessment. The packet provided to the Council describes the product background and the firm's principals as well as a preview job description survey worksheet which he would like the Council to complete which will then be compiled into the benchmark assessment. He (Mr. Hunter) asked each Councilmember and Mayor Fahey to complete the worksheet and return it to Council Assistant Jana Spellman as soon as possible. This process will allow Council participation in filling these important positions. Quality of Council President Haakenson said the Council Office has received several telephone calls regarding the Television quality of the re- broadcast of the Council meetings. Staff is aware of the problem and is fairly confident Broadcast I the problem has been resolved. In addition, he provided a reminder that there will not be a Council meeting next Tuesday as it is the fifth Tuesday of the month; the next Council meeting is October 6. Councilmember Miller said he attended a presentation by Snohomish County Executive Bob Drewell F67- H. regarding issues facing the County. One of the most significant issues was that the Snohomish County ogram Council agreed to fund the 800 MHz program via Councilmanic bonds as well as negotiate agreements with each city. He said 70% of the Executive's State of the Budget address relates to Public Safety and Mr. Miller commended the Executive's and the County Council's commitment to funding the 800 MHz program. Excused COUNCILMEMBER VAN HOLLEBEKE MOVED, SECONDED BY COUNCIL PRESIDENT bsence HAAKENSON, TO EXCUSE COUNCMMEMBER NORDQUIST FROM THE SEPTEMBER 14 MEETING. MOTION CARRIED, COUNCILMEMBER NORDQUIST ABSTAINED. M wn Councilmember Plunkett invited citizens interested in the test loading zone on 5TH South near Main and continued discussion of a downtown parking garage at the Public Safety site to attend the next ee Downtown Parking Committee meeting on October 7 on the second floor of City Hall at 3:30 p.m. For Council President Haakenson, Councilmember Plunkett explained a recent publication from the merchant's association encouraged citizens to communicate with Councilmembers regarding discussions of a downtown parking garage at the new Public Safety site. xecutive 9. EXECUTIVE SESSION REGARDING LEGAL/PERSONNEL MATTERS Session Mayor Fahey adjourned the City Council to Executive Session at 9:08 p.m. for approximately 20 minutes for discussion regarding labor negotiations. She indicated no action would be taken and the Council would adjourn immediately following Executive Session. do,., z4e,,-� SANDRA S. CHASE, CITY CLERK Edmonds City Council Approved Minutes September 22, 1998 Page 15 1 AGENDA EDMONDS CITY COUNCIL Plaza Meeting Room - Library Building 650 Main Street 7:00 -10:00 p.m. SEPTEMBER 22, 1998 SPECIAL MEETING (A) ROLL CALL (B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF SEPTEMBER 14, 1998 (C) APPROVAL OF PAYROLL WARRANTS #21938 THRU #22094 FOR THE PERIOD SEPTEMBER 1 THROUGH SEPTEMBER 15, 1998, IN THE AMOUNT OF $438,104.95. (D) ACKNOWLEDGE RECEIPT OF CLAIM FOR DAMAGES FROM STEPHANIE GRAHAM ($200.91) (E) ACCEPTANCE OF QUIT CLAIM DEED AT 20417 88TH AVENUE WEST FROM NICHOLAS D. HART (F) ACCEPTANCE OF UTILITY AND CONSTRUCTION EASEMENTS FROM CARL P. AND POLLY PEARSON (G) REPORT ON FINAL CONSTRUCTION COSTS FOR THE 1998 STREET OVERLAY PROGRAM AND COUNCIL ACCEPTANCE OF PROJECT (H) REPORT ON FINAL CONSTRUCTION COSTS FOR THE 1998 STREET SURFACE TREATMENT PROGRAM AND COUNCIL ACCEPTANCE OF PROJECT (1) REPORT ON FINAL CONSTRUCTION COSTS FOR THE YOST PARK IMPROVEMENTS TO YOST POOL AND COUNCIL ACCEPTANCE OF PROJECT (J) REPORT ON BIDS RECEIVED FOR MISCELLANEOUS EQUIPMENT FOR THE FIRE LADDER TRUCK AND AWARD OF CONTRACT (K) AUTHORIZATION TO SURPLUS 1979 HENDRICKSON FIRE ENGINE 3. (10 Min.) PROCLAMATION FOR DAY OF CONCERN FOR THE HUNGRY 4. (10 Min.) CONSIDERATION OF PURCHASE OF FOUR -WHEEL DRIVE UNIT FOR THE FIRE DEPARTMENT 5. (10 Min.) REPORT ON STATUS OF ZONING ISSUES FOR NON - CONFORMING SITES 6. (20 Min.) REPORT ON SELF INSURANCE HEALTH BENEFIT FUND 7. (5 Min.) MAYOR'S REPORT 8. (15 Min.) INDIVIDUAL COUNCIL REPORTS /UPDATES ON RESPECTIVE BOARD MEETINGS 'arking and meeting rooms are accessible for persons with disabilities. Contact the City Clerk at (425) 771 -0245 with 24 hours advance iotice for special accommodations. The Council Agenda appears on Chambers Cable, Channel 32. Delayed telecast of this meeting appear he following Wednesday, Friday and Monday at noon on Channel 32.