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08/15/2000 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES AUGUST 15, 2000 The Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Gary Haakenson in the Library Plaza Room, 650 Main Street, followed by the flag salute. ELECTED OFFICIALS PRESENT Gary Haakenson, Mayor Jim White, Council President Pro Tem Michael Plunkett, Councilmember Lora Petso, Councilmember Dave Orvis, Councilmember Christopher Davis, Councilmember ELECTED OFFICIALS ABSENT Thomas A. Miller, Council President Dave Earling, Councilmember 1. APPROVAL OF AGENDA STAFF PRESENT Peggy Hetzler, Administrative Services Director Noel Miller, Public Works Director Rob Chave, Planning Manager Don Fiene, Assistant City Engineer Mike Linn, Construction Engineer Scott Snyder, City Attorney Sandy Chase, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder COUNCILMEMBER PETSO MOVED, SECONDED BY COUNCILMEMBER DAVIS, FOR APPROVAL OF THE AGENDA AS PRESENTED. MOTION CARRIED UNANIMOUSLY. 2. CONSENT AGENDA ITEMS COUNCIL PRESIDENT PRO TEM WHITE MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, FOR APPROVAL OF THE CONSENT AGENDA AS PRESENTED. MOTION CARRIED UNANIMOUSLY. The agenda items approved are as follows: (A) ROLL CALL Approve 8/8 mutes (B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF AUGUST 8, 2000 IM Approve (C) APPROVAL OF CLAIM CHECKS #41307 THROUGH #42926 FOR THE WEEK OF Claim AUGUST 7, 2000, IN THE AMOUNT OF $590,424.54 Checks Findings of (D) APPROVAL OF FINDINGS .OF FACT REGARDING A PUBLIC HEARING HELD ON Fact AUGUST 1, 2000 ON THE PLANNING BOARD RECOMMENDATION TO DENY THE ngiono- APPLICATION BY INES ANGIONO- FOURNO, ET. AL. TO REZONE Foumo APPROXIMATELY TWO ACRES FROM RM -3 TO RM -1.5. THE REZONE INCLUDES File No. THE FOLLOWING PROPERTIES: 533 539 551 553 558 560 561 563 565 570 572 R- 99-231 > > e > > > > > > > > 580, 582, 588 AND 590 ELM WAY; AND 1122 6TH AVENUE SOUTH (File No. R -99 -231) Edmonds City Council Approved Minutes August 15, 2000 Page 1 I National (E) PROCLAMATION IN HONOR OF NATIONAL HEALTH CENTER WEEK, AUGUST 20- Wtth 26, 2000 ter Wee 7Appeposed Mayor Haakenson referred to a fax copy of a letter he received from Bob Walkley, attorney for al) ety Burlington Northern Santa Fe (BNSF) Railroad, indicating BNSF had withdrawn their permit application ce on to construct a fence at Sunset Avenue, therefore, no public hearing would be necessary before the City set Ave. Council on the Wassall a eal on inall scheduled for Au ust 29, 2000 The letter stated BNSF assall pp ( g Y g )• reserved the right to reapply if the Washington Utilities and Transportation Commission (WUTG) continued to require structures at the top of the bluff on Sunset Avenue or it became otherwise necessary to reapply. BNSF's letter further stated the withdrawal action did not affect permits or plans for Ocean Avenue at this time which remain in effect pending WUTC review. BNSF expressed their appreciation for the hard work and cooperation provided by the City on these controversial proposals, particularly the efforts of staff and the City Council over the past five years. BNSF indicated their pleasure with the alternate proposal and hoped for a speedy and successful review before the )ATUTC. Mayor Haakenson explained that although this was not necessarily the end, BNSF's withdrawal of their application represented a strong commitment on their part to resolve the issue of the fence at Sunset Avenue. Further, Mayor Haakenson indicated the WUTC would also consider resolution to the fence at Ocean Avenue at the same time. ECDC 3• PUBLIC HEARING ON INTERIM ZONING ORDINANCE NO. 3317, THE TITLE OF WHICH 20.91.030 - READS: AN ORDINANCE OF THE CITY OF EDMONDS WASHINGTON REPEALING Continuances SECTION 20.91.030 CONTINUANCES REENACTING SUCH SECTION 20.91.030 CONTINUANCES AS AN INTERIM ZONING REGULATION, SETTING A PUBLIC HEARING AND FIXING A DATE WHEN THE SAME SHALL BECOME EFFECTIVE City Attorney Scott Snyder said this was a required public hearing on an interim zoning measure. He explained the Council was authorized to enact certain interim zoning measures and zoning moratoria without a public hearing, provided a public hearing was held at a later date. He said the Council passed what was viewed as a procedural ordinance regarding continuances; because the procedures were in the zoning code, the Planning Board's recommendation was required. When that was discovered, the Council repealed the ordinance and enacted it as an interim zoning measure and referred it to the Planning Board for recommendation. This public hearing was to accept public comment and the Council would take no action at the conclusion of the public hearing. Mayor Haakenson opened the public participation portion of the public hearing. Roger Hertrich, 1020 Puget Drive, Edmonds, recalled . when he was on the Council, an applicant/appellant was required to appear on the evening the hearing was advertised and make an appeal to. continue the hearing to a later date. He said this allowed the Council the opportunity to accept public comment from those who were present to address the issue in the event they were unable to attend a continued hearing. He said although it was convenient to allow the Council President to make the decision, that decision would omit' members of the public who may have been planning to speak at the hearing. He commented there also may be different .circumstances based on whether the Council President knew the applicant/appellant. He said the proposed procedure resulted in the Council losing the ability to make the decision of whether to grant a continuance. He also expressed concern with who would determine what was good cause and felt the entire Council should snake that decision on the evening the hearing was scheduled. Edmonds City Council Approved Minutes August 15, 2000 Page 2 Hearing no further public comment, Mayor Haakenson closed the public participation portion of the public hearing. Mr. Snyder said the ordinance applied only to quasi judicial hearings and not to general legislative matters. As a result of Regulatory Reform, the Council did not hold public hearings on quasi judicial matters but held only appeals. As the proposed procedures would apply only to quasi judicial appeals, only the appellants and parties of record who could speak at the appeal would be notified and have an opportunity to respond to the Council President. Edmonds 4. PRESENTATION BY THE EDMONDS ALLIANCE FOR ECONOMIC DEVELOPMENT Alliance for Economic David Peterson, Executive Consultant to the Edmonds Alliance for Economic Development soon to Develop- ment be the Executive Director), introduced Mikael- Hattrup, Program Coordinator for the Edmonds Alliance for Economic Development. Mr. Peterson said over the past month, the EAED developed a work program for the next 2 -3 years. He explained the EAED was a group working together, with a 13- member board with representation from the City, the Port of Edmonds, Edmonds Community College, the private sector, and representatives from the arts, commercial interests and property owners. He said their goal in the next 2 -3 years was the Central Business District but some programs would have influence throughout the community. Mr. Peterson explained the goals seek economic development, not an increase in taxes but an increase in tax base, which would increase revenue to the City as well as enhance the existing high quality of life. To accomplish these goals, the work program addresses parking, building codes, Sound Transit commuter rail, and tourism development on waterfront properties. Mr. Peterson emphasized the EAED did not have a capital fund and would not be purchasing and developing property; they would not be loaning money, and did not have zoning power. Their role was to be a catalyst between and within, and to work cooperatively in support of various groups. He said their goal was to play a leadership role in assisting the City, Port, Unocal, and property owners to expand/develop the economic base in the community in a way that protected and enhanced the village character that exists throughout the downtown area. He agreed there would still be times where there would be debate but the cooperation pledged by the adoption of the work program lead them to believe they could achieve a balanced program over the next 2 -3 years. Mr. Peterson said in the next calendar year, the base of the EAED would be broadened to seek support from the private sector. He acknowledged the EAED needed the City's financial support but, more importantly, needed the City's support and leadership in programs that address redevelopment efforts. As there would be zoning issues, he said the EAED was watching the consultant study being done regarding the development process. Councilmember Plunkett asked Mr. Peterson to identify the potential for Edmonds and what economic development meant to citizens (not necessarily the impact on the City's tax base). Mr. Peterson explained there was a delicate balance to retaining the quality and continuing to build the economic base. He said economic development did not mean "huge factories or huge office buildings" but a balance. He said the property from Unocal to the current ferry landing and property further back was among the finest property left in the Puget Sound area, causing the area to be noticed by others. He said the Port's plan was also seeking a proper balance. He explained there was a way to achieve economic development- that supported retail, restaurants and quality of residential life that currently exists. He pointed out Edmonds City Council Approved Minutes August 15, 2000 Page 3 commuter rail in the heart of downtown allowing a 23 minute trip to downtown Seattle, would have a great impact on the community. Mr. Peterson commented there was nothing wrong with addressing the City tax base, pointing out there was an opportunity to assist with increasing the tax base via high quality development. He emphasized the ability to have quality growth and quality development and enhance a community rather than detract from it. He pointed out the conversion ofthe old railroad yards in Spokane (for the Worlds Fair), viewed early in the process as an impediment to the quality of 'life, was now viewed as an aesthetic and environmental improvement. Councilmember Petso asked which specific zoning issues was the EAED interested in. Mr. Peterson answered there had been comments made in the past regarding whether Edmonds was doing it's fair share in accepting increased density; one of the issues to be addressed would be how to increase density without infringing on neighbors and in a way that would not be detractive to neighborhoods. Another area was parking, what parking trends are, public transportation and whether the old standards for parking were still appropriate for this community's demographics. A third issue was the stage at which design review occurred, near the beginning to guide planning and development or at the end. He said other communities have found moving that process to the beginning could better assist with guiding development. He said that although the HyattPalma study recommended increased height, that would not be addressed by the EAED. He said although he believed there were areas in the community where some selective height could be accommodated, that issue would be project driven and had nothing to do with the EAED's work program. He said it was not necessary to increase height limits in the community to achieve economic development. Councilmember Petso asked how the focus could be expanded from the downtown business district to Hwy. 99 and neighborhood businesses. Mr. Peterson said if they did too many things at first, they would not do any of them well. The members of the EAED have indicated this was not the end, but represented a 2 -3 year commitment to a portion of the City that could move to other areas in the future. He did not want anyone to think only the EAED could work on economic development and encouraged aggressive City and/or neighborhood programs to be undertaken in other areas of the City. Councilmember Davis asked Mr. Peterson to describe the scope of some of the projects on the work program. Mr. Peterson advised projects would include a directory to guide visitors; a newsletter; undertaking a comprehensive research program so that information regarding ferry trips, hotels, parking, etc. would be available. to retailers, the City, etc.; work with Unocal, the City, the Port and private property owners to bring strong attractions to the community; supporting FACE; and, if appropriate, working closely on redevelopment of the Puget Sound Christian College. He said EAED was already working with Sound Transit regarding opportunities for Edmonds as the first stop from Seattle. Councilmember Plunkett asked how Ms. Hattrup was involved with the public. Mr. Peterson said Ms. Hattrup, as the Program Coordinator, was available at their office in City Hall (within the Chamber of Commerce office). 5. AUDIENCE COMMENTS Edmonds Ray Albano, 20916 76 "' Avenue West, Edmonds, commented there was no tax base in Edmonds other ante for than on Hwy. 99. He supported Edmonds developing a retail tax base rather than a property tax base. nomic He objected to the EAED having an office in City Hall, commenting there had been no worthwhile Clop increase in economic development. He recommended getting others involved in the process who were not politicians or downtown property owners. He said the absence of handicapped parking in the Edmonds City Council Approved Minutes August 15, 2000 Page 4 downtown area limited many citizens to only a few restaurants. He was in the process of learning the number of required handicapped on- street parking spaces. Mayor Haakenson commented the EAED shared office space with the Chamber of Commerce who paid rent to the City. If the EAED acquired new space in City Hall, they would also pay rent. Library George Everett, 617 Dayton Street, Edmonds, said he attended two meetings earlier this year where Funding the question of property taxes and the library arose and both times the Mayor asked the Administrative Services Director the amount the City received in property taxes to which she answered approximately $8 million. The Mayor then asked how much the City spent on fire and police to which she answered approximately $10 million. The Mayor then stated property taxes did not cover basic services. Mr. Everett said this one -sided approach concerned him. He pointed out the City could pay the $1 million cost of the library from the $8 million in property taxes and still have $7 million left for other expenses. He said this was a budget problem not a library problem. He remarked the City planned to solve the problem by using funds earmarked for the library for other things and funding the library via a new property tax. He commented some of the Mayor's budget scenarios that showed a balanced budget assumed the library would be out of the General Fund by 2002. He said the scenario should have also described the new property tax because citizens likely have not heard enough about it to convince them to vote for it. He questioned what happened if citizens voted no, would the library go away? Proposed Jim Wassall, 342 Sunset Avenue, Edmonds, thanked the Mayor and Council for their interest in trying Safety to keep trespassers off the Burlington Northern tracks. He also thanked the 2,190 people who read and Fence on Sunset Ave. signed their informal petition. He thanked their neighbors and friends for their support regarding this (Wassall fence issue. Mr. Wassall expressed particular thanks to Mayor Haakenson, commenting that without his Appeal) assistance, there would be a 2 -rail, steel pipe fence along Sunset Avenue. He said although the fence did not affect his view of Puget Sound, it would interfere with the view enjoyed by many who park along Sunset Avenue to enjoy the view. Further, the 2 -rail fence would not deter anyone from trespassing. He hoped the WUTC would eventually respond positively to the proposal for thorny plantings on the top of the bluff in areas where trespass could occur. Public Roger Hertrich, 1020 Puget Drive, Edmonds, agreed with Mr. Wassall's expression of appreciation to Safety Mayor Haakenson for his efforts regarding the fencing issue. Mr. Hertrich expressed concern with the Complex pile of dirt in the center of the Public' Safety Complex parking lot, stating he was advised that there may Construction not be any plan available for the grading. He asked whether there was an approved, completed plan for grading, curb cuts, ramps, and parking lot development. Mayor Haakenson answered yes. Mr. Hertrich asked if there had been any Architectural Design Board (ADB) involvement. He asked if the City had a contractor for the parking lot. He learned there had been 29% in change orders, observing 10% was about normal. He questioned whether the moneys being spent would exceed the bond issue and, if so, how the new fire station would be funded. Mayor Haakenson asked Mr. Hertrich who made these claims to him. Mr. Hertrich said that was privileged, confidential information. Mayor Haakenson said if Mr. Hertrich was at the site today, Mossbrucker Construction, for whom Syd Locke is the project manager, was doing the grading. Mr. Hertrich asked if the plans for grading, curb cuts, etc. were available to the public. Mayor Haakenson answered yes. Edmonds City Council Approved Minutes August 15, 2000 Page 5 In response to Mr. Hertrich's concern with the amount spent for the Public Safety Complex, Mayor Haakenson said to date the City had spent between 90% and 95% of the project cost for this phase of the construction project and had not touched the moneys for the fire station on 196`' that would be constructed in 2002. He commented new plans would be required for the fire station because the original plans would not work on the site that was purchased. He emphasized the City has not overspent on the Public Safety project although there would be significant legal fees. He acknowledged there had been change orders but the responsibility for the change orders — whether the City's, the contractor's or the architect's — would be decided in court. He said the total of the change orders and who was responsible for them was privileged information due to lawsuits between the three parties. Mr. Hertrich asked if the public could review that information. Mr. Snyder advised the submittals, contracts, approved change orders and any public documents were available to the public. Much of the accounting was prepared in anticipation of legal review and was not available for public review. Mr. Hertrich said he was attempting to determine how much more the change orders would add to the project, pointing out the citizens will ultimately pay for them. Mayor Haakenson expressed frustration with a citizen making a comment without indicating where he heard that information so that he (Mayor Haakenson) could talk to that individual. He invited Mr. Hertrich to inform him later who he spoke with. Mayor Haakenson said he met with 12 neighbors on 5'h Avenue, who were told by a Columbia Pacific employee (general contractor) that there would be no landscaping on 5`'' Avenue because there was no money for it. He showed the neighbors the approved plans and explained the plants were purchased two years ago and were now twice the size and created a much better screen. He said this was representative of the type of false information that was being spread around. Regarding ADB review, Mr. Snyder said a Council Committee recently discussed the need to amend the ADB plan to install a sculpture proposed by the IAFF. Beverly Linn, on behalf of the Edmonds Police Foundation, reminded the community of the upcoming Edmonds Edmonds Challenge on September 8 sponsored by the Edmonds Police Foundation, Edmonds Police Challenge Youth Services and local businesses. She explained the Edmonds Challenge was a running/walking /walkin Run /Walk p g g g Event event designed for family participation and had a 2 and 4 mile course. Registration fees were $20 in advance, $25 at the event and $30 for a family of three or more. Refreshments and entertainment would be provided. She ,invited anyone requiring additional information to contact Sgt. Debbie Smith. On behalf of the Edmonds Police Foundation and Edmonds Youth Services, she thanked Mayor Haakenson and Council President Pro Tem White for spending time on and in the dunk tank during the Taste of Edmonds. August 23 Elaine Hamner -Yard, 9209 Olympic View Drive, Edmonds, expressed her appreciation for receiving Hearing notification in the mail of a hearing regarding church parking and traffic patterns scheduled for Before the Wednesday, August 23 at 7:00 m. a City Hall third floor. She hoped all 23 churches in the City Planning y� g Il• t � � l� t}' Board Re: would have representatives present at the hearing as the reduction of seating in the church per parking Church place was being discussed. She said the proposal was to reduce the current requirement of five people Parking . per car to three people per car. U1Donna Randall, 841 Hendley Lane, Edmonds, said discussion at a recent Council meeting regarding g the increased need for tax funds focused largely on the library. At earlier financial planning meetings in U the City, she had the impression that the need for increased funding would be spread over the fire and Edmonds City Council Approved Minutes August 15, 2000 Page 6 police departments. She said tonight's discussion regarding a levy lid lift again appeared to be focused on the library. (Council agreed to allow Mr. Albano to speak for an additional three minutes as he believed he was speaking under the public comment portion of the EAED discussion when he spoke previously.) Appreciation Ray Albano, 20916 76th Avenue West, Edmonds, said this Council was the best thing to happen to fMayor & Edmonds since he has lived here. Mr. Albano reminded the .attorneys to speak in a down -to -earth Council manner. He was glad there was a woman on the Council, and he further expressed his appreciation to the Mayor for his efforts. Library In response to Mr. Everett's comments, Mayor Haakenson said although only five budget scenarios were Funding presented at public meetings, there have been as many as 20 -25 scenarios under his consideration (with the library paid from the General Fund and paid by other means) as well as other scenarios developed by Councilmembers. He emphasized at this time, his intent was to have the library paid out of the General Fund until he was informed differently. Sno Isle 6. DISCUSSION ON SNO ISLE REGIONAL LIBRARY SYSTEM RESOLUTION Regional Library Mayor Haakenson clarified this was discussion regarding a resolution prepared by Sno Isle Regional Resolution Library Board of Trustees. He referred to a July 26, 2000 letter from Art Weeks, Director of the Sno Isle Library, that outlined the District's intent to pursue annexation of all contract cities within the next five years. He explained the letter was distributed to the Long Range Financial Task Force who directed Council President Pro Tem White and him to meet with Mr. Weeks to discuss the Board's intention. Council President Pro Tem White explained on July 26, 2000, the City received a letter indicating the District's intention to move toward annexation of all contract cities. He said the Sno Isle Library includes Snohomish County and Island County and includes libraries in many small cities. There are currently nine cities supporting library services via contract rather than annexation. He explained annexation was when a geographical region was integrated into the library system so that the library board governed that area and imposed a tax to fund the library. Council President Pro Tem White explained Sno Isle had concern with many issues including library building ownership and the amount paid for library service and maintenance under existing contracts. The intent of the Board was to create consistency and stability throughout the District as instability of local funding creates instability throughout the library district. Council President Pro Tem White pointed out this was illustrated by the discussions the Council has had regarding the concept of not funding the library due to a lack of funds as a result of I -695 and how to eliminate that in the future. Council President Pro Tem White explained that via annexation, Sno Isle charged a tax of $0.50 per $1,000 of assessed valuation. Cities under contract pay a variable rate; Edmonds' rate was approximately $0.38 per $1,000. He pointed out property values in Edmonds were significantly higher than some other cities. Sno Isle has discussed how the $0.38 per $1,000 paid by Edmonds relates to the $0.50 per $1,000 paid by cities such as Mountlake Terrace via annexation. He emphasized this was just the beginning of the discussion with Sno Isle; the City was free to do whatever it wanted and Sno Isle would continue to provide library services as they currently exist. Councilmember Davis said the 5 -year period indicated in Sno Isle's letter as well as in the resolution gave the appearance of an ultimatum. Council President Pro Tem White said the pursuit of annexation of Edmonds City Council Approved Minutes August 15, 2000 Page 7 all contract cities within five years was the Sno Isle board's goal. He emphasized Sno Isle could not dictate that the City annex, only the City can initiate a ballot measure for annexation. Councilmember Orvis asked who appointed the Sno Isle Board. Mayor Haakenson advised there were five appointees from Snohomish County and two from Island County. The members were appointed by the County Executive and approved by the opposite County Council. Councilmember Plunkett pointed out if the levy lid lift succeeded, the library stayed as it is. Administrative Services Director Peggy Hetzler agreed. Councilmember Plunkett said if annexation was successful, the library stayed the same. Ms. Hetzler agreed. Councilmember Plunkett asked if the library would remain if a levy lid lift failed. Ms. Hetzler answered the physical library would remain, how to fund it would be decided by the Council. Councilmember Plunkett asked whether the existing funding would remain in place if a levy lid lift failed. Ms. Hetzler answered yes. Councilmember Plunkett asked if there had been any option discussed that would close the library. Ms. Hetzler answered no. Councilmember Plunkett said it was important for everyone to understand the Council was discussing funding mechanisms and not closing the library. Councilmember Petso asked if there was a vacancy on the Sno Isle Board. Mayor Haakenson answered yes. Councilmember Petso asked if a citizen from Edmonds would be eligible. Mayor Haakenson answered yes. Councilmember Petso shared Council President Pro Tem White's concern with Sno Isle billing the City based on valuation of homes and /or views. She asked if the Board had any plans to develop a more reasonable method. Council President Pro Tem White said the Board would be more than anxious to create a taskforce to examine equity among contract and annexed cities. He said it was a complex issue because under the current contract, Edmonds paid the least of any other participating city per $1,000 of assessed value; however, Edmonds' property values were. significantly higher than some other participating cities. Councilmember Orvis said annexation had several disadvantages. Because Edmonds property values were higher than the surrounding area, the City could be taxed more than its share. He disagreed with relinquishing taxing authority to a board that was not elected because accountability could not be addressed. Further, if the City was taxed $0.50 per $1,000 via annexation, he said there was no guarantee those funds would be returned to the Edmonds library. He was opposed to annexation and favored an option that provided library service via a contract with Sno Isle. He said a levy lid lift would stabilize funding and address Sno Isle's concerns regarding stability. He emphasized the citizens must vote for a levy lid lift. Mayor Haakenson asked if the assessment for 2001 had been received from Sno Isle. Ms. Hetzler said it was estimated to be slightly under $1.1 million, the assessment for 2000 was slightly over $1 million, the increase was approximately $70,0004100,000. She said the increase was based on Sno Isle's allowable 3% increase. Mayor Haakenson restated a question posed by George Everett, "what incentive was there to vote in favor of a levy lid lift if the library stayed in place even if it failed ?" Councilmember Plunkett answered a levy lid lift would provide stability and ongoing funding for the library. Without dedicated funding, it would be considered with all other possible issues that arose in the budget. Council President Pro Tem White disagreed the library was entirely safe, pointing out the City had a legal obligation to provide certain services. If costs continued to rise and revenues continued to decrease, something would have to be eliminated and it could not be certain services. The purpose of a Edmonds City Council Approved Minutes August 15, 2000 Page 8 levy lid lift would be to dedicate funds to the library for as long as the levy lid lift was in effect. He said the success of a levy lid lift would secure the library, failure would leave it in question. 7. REPORT ON AUDIO EQUIPMENT Audio Equipment Mayor Haakenson recalled this was the third time this item had been before the Council and noted all the information was available for the Council to take action. He said the information provided by staff clearly indicated they had .chosen not to purchase the newer technology due to the cost and assurance by Lanier that they will provide the necessary support services. COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCIL PRESIDENT PRO TEM WHITE, TO AWARD A CONTRACT TO AUDIO VISUAL FRONTIERS IN THE AMOUNT OF $49,047.37 INCLUDING SALES TAX AND AUTHORIZE FINANCE TO TRANSFER $50,000 FROM THE COUNCIL CONTINGENCY FUND 119 TO FUND 326. Council President Pro Tem White pointed out the last time the Council reviewed this, an issue arose regarding the availability of newer technology that could store hours of information on a credit card sized chip versus the current analog cassette tape system. Further analysis was done and it was determined the newer technology costs thousands more and the City had been assured support would be provided for the analog tapes technology for a long time. MOTION CARRIED UNANIMOUSLY. tility Rate 8. AUTHORIZATION TO AMEND THE UTILITY RATE STUDY WITH FINANCIAL Study CONSULTING SOLUTIONS GROUP (FCSG) TO DEVELOP CAPITAL CONNECTION CHARGES FOR THE WATER AND SEWER UTILITY FUNDS ($9.550) Public Works Superintendent Noel Miller explained this was a proposal to study and develop "proposed" capital connection charges. He said the concept was first proposed by Councilmember Petso earlier this year and was previously discussed by Council committees and the Council. He explained the proposal was to charge new development when they connected to the City's water and sewer systems as new development takes water from the City's water system and adds to the existing sanitary sewer system placing an incremental higher burden on the system that the current property owners have paid for over the years. He said the intent would be to defray the cost of further capital replacement projects that the City has discussed. He said the capital connection charge would also reduce the anticipated increase in the sanitary sewer rates. Mr. Miller said the City's existing rate consultant, Financial Consulting Solutions Group (FCSG), would be used to develop proposed capital connection charges this fall if approved by Council. He explained once FCSG completed the study, the Council could determine whether the charges were fair and whether they should be implemented. Councilmember Davis asked if the study would provide a recommendation regarding the amount of the hook -up fee. Mr. Miller answered yes, explaining FCSG's study would be based on industry standard methodology recognized by the State auditor but would be a study unique to Edmonds. Councilmember Davis asked what the charge might be. Mr. Miller said $1,000 - $3,000 per multi- family or single family residence. Edmonds City Council Approved Minutes August 15, 2000 Page 9 . 1 Councilmember Davis observed the average for both water and sewer hook -up would be approximately $4,000. Mr. Miller said that was approximately the amount charged by other cities and districts in the area. Councilmember Davis asked how much this would provide for capital needs. Mr. Miller answered in the past, the City added approximately 100 new units per year; if a connection charge was implemented, it would generate approximately $200,000 for sewer and $200,000 for water. Councilmember Davis said implementing a connection charge would alleviate the need to significantly raise rates. Mr. Miller said it would help but would not result in a significant reduction in the anticipated increase in rates. He said sewer revenue needs in 2005 were approximately $1.6 million; the additional revenue from the connection charge would reduce that to $1.4 million. COUNCILMEMBER PETSO MOVED,. SECONDED BY COUNCIL PRESIDENT PRO TEM WHITE, TO AUTHORIZE THE MAYOR TO AMEND THE CURRENT UTILITY RATE STUDY WITH FINANCIAL CONSULTING SOLUTION GROUP (FCSG) TO DEVELOP CONNECTION CHARGES FOR THE WATER AND SEWER FUNDS PER THE ATTACHED PROPOSAL. Councilmember Plunkett observed citizens could pay for water and sewer via rates or the City could impose an impact fee on citizens. He was opposed to the City studying a capital connection charge due to the resulting increase in housing costs. He pointed out the net profit for a builder was 5 %; the addition of a $2,000 - $4,000 impact fee cut their profit in half, thus the buyer was obviously the one who would pay the fee. He said the connection charge contradicted the State's GMA which requires urban areas to encourage affordable, available housing. The City's Comprehensive Plan requires the City to encourage affordable available housing. He said the cost of the connection charge was hidden and would be amortized over 30 years, ultimately costing $13,500 over the life of the mortgage for new construction or a person refurbishing a home. He said the cost was not only hidden but grew over time. Councilmember Plunkett observed the impact fee was a triple tax. A buyer paid when they purchased a home, they paid via rates, and paid excise tax when selling their home. He said the impact fee was also passed on to other citizens via increased valuations. The impact fee artificially inflated the value of a home, resulting in increased assessments in surrounding homes and thus increased taxes. He said those who would pay the impact fee already pay a considerable amount to the City via an excise tax that generates $740,000 for Fund 125 which funds numerous citywide projects. Councilmember Plunkett recalled an immigrant family's attempts to purchase a home near Meadowdale High and their ultimate failure because they were $3,000 short of the price the owner would accept. He pointed out this family's ability to purchase a home would be further impacted by a connection charge. He said the impact fee artificially increased the cost. of housing and was, therefore, unfair, hidden, exceedingly expensive, a broad -based tax and triple taxation on those who already pay taxes. He was opposed to even studying a connection charge as the Council's policy was to encourage affordable housing. Councilmember Petso asked if the impact fee would apply to any home purchased or sold in the City or if it applied only to new construction. Mr. Miller answered it applied to only new construction or redevelopment that added more units to a property. Councilmember Petso said if the family Councilmember Plunkett referred to was purchasing from existing housing stock, they would not be paying the connection charge. Mr. Miller agreed an existing house would not pay the connection charge. Councilmember Petso said the Municipal Research Services Center (MRSC) web page included a discussion of how impact fees related to affordable housing. She said according to GMA and MRSC, it Edmonds City Council Approved Minutes August 15, 2000 Page 10 was well recognized that this was not a housing affordability issue and the City would not be out of compliance with any statute because if the costs were not paid via impact fees, the new family would pay via rates. The decision was whether to subsidize growth via rates or imposing an impact fee that was calculated to produce equity between existing and future residents. She said the formula was designed to prevent existing residences from subsidizing growth; if the impact fee was not implemented, existing residents would be subsidizing growth Councilmember Orvis said he would vote in opposition to the proposal for many of the same reasons cited by Councilmember Plunkett. He said it was important to understand that the impact fee would be amortized over 30 years. Councilmember Davis said he would support the motion, pointing out young families have the potential for income growth and possibly increased ability to pay over time versus the City raising rates on the elderly community, many of whom are on fixed incomes. He pointed out the connection charge was "pay for service," for a system that needed to be expanded to accommodate new service which was not currently being done. Council President Pro Tem White stated the purpose of the study was to determine what amount would be appropriate for a hook -up fee as well as any impacts the charge might have on prospective purchasers and contractors. UPON ROLL CALL, THE MOTION CARRIED (3 -2), COUNCIL PRESIDENT PRO TEM WHITE, COUNCILMEMBERS PETSO AND DAVIS IN FAVOR, AND COUNCILMEMBERS PLUNKETT AND ORVIS OPPOSED. 9. REPORT ON COMMITTEE MEETINGS Community Community Service/Developmental Services Services/ Council President Pro Tem White said the committee discussed the concerns of the police and fire Dev. Services department regarding the practice of allowing private roads to be developed in subdivisions and plats. Committee Those concerns included traffic safety issues and lack of assurance that these roads were maintained to emergency response standards. Staff would like a requirement that private roads not be allowed in new developments of five lots or more. This threshold was identified because it was the difference between short subdivisions (four lots) and formal plats (five lots or more). The committee directed staff to develop code revisions and standards to require all future roads servicing five or more single family lots be designated as . "public" and bring to the full Council for discussion and adoption. In addtion, the committee discussed developer impact fees which was addressed by the Council as Agenda Item 8. Next, Council President Miller invited Al Dykes, the owner of the "old Safeway property" to speak to the committee regarding a proposal for a joint private /public development on that site. After considerable discussion, it was decided that Councilmembers White and Petso would meet with Port officials, City staff and Mr. Dykes to study the feasibility of this project. The fourth item discussed by the committee was a request by the Fire Department to place a privately funded firefighter memorial at Fire Station 17 in the new Public Safety Complex. The artwork was proposed to be placed on the site that was currently designated for public art. Council President Pro Tem White explained there was currently no process to add /change public art. The committee's original direction was to direct staff to further refine . a process in which the applicant would submit information to the Arts Commission and Parks and Recreation Department followed by an application to the ADB for Edmonds City Council Approved Minutes August 15, 2000 Page 11 approval of placement-at a public meeting of a firefighter memorial at Fire Station 17. Council President Pro Tem White said he now wanted to expand that to direct staff to define a process that would allow the ADB, Arts Commission, Parks and Recreation, and representation from the Council and staff to determine what do when a proposal would impact public art such as creating a public art zone in the areas where public art was located. COUNCIL PRESIDENT PRO TEM WHITE MOVED, SECONDED BY COUNCILMEMBER DAVIS, TO DIRECT STAFF TO CREATE A PROPOSAL /PROCESS TO DETERMINE WHAT TO DO WHEN A PROPOSAL IMPACTED ESTABLISHED PUBLIC ART. Councilmember Plunkett preferred this be placed on a future Council agenda so that more written information could be provided. Council President Pro Tern White pointed out the Fire Department wanted to move forward with the project. He reiterated the need for the City to establish a process to address such proposals. MOTION CARRIED UNANIMOUSLY. Public Public Safety G Safety Councilmember Plunkett advised the committee discussed and reviewed changes to the animal control Committee ordinance and recommended the revised Animal Control Ordinance be placed on a future consent agenda. The committee discussed a proposal by Chief Hickok to utilize the PRISIM Firearms Training System (a computerized shooting range) due to the difficulty in providing realistic combat shooting scenarios as a result of the closure of two local shooting ranges. The committee recommended the PRISIM Firearms Training System be considered by the Council on a future agenda. The committee discussed emergency medical services, specifically four questions raised at the July 18' Council meeting that needed further review from staff. Administrative Services Director Peggy Hetzler will respond regarding cost controls (question 1). The committee agreed to write to Lynnwood Council President Gough to inquire whether Proposal A would affect level of service (question 2). Mayor Haakenson provided information in the Council packet regarding Medic 7's budget for the past five years (question 3). In response to the fourth question, Fire Chief Tomberg indicated a medic attached to a fire unit downtown would have a faster response time to certain areas of the city than the medic unit at the hospital. Long Range Financial Task Force Long Range Councilmember Orvis reported Administrative Services Director Pe Hetzler was asked to bring Financial p Peggy g Task Force information regarding cost controls to the next Task Force meeting. Councilmember White and Mayor Haakenson were asked to meet with the Sno Isle Library System Director regarding clarification of the district's plans to seek annexation of all contract cities by 2005. Assistant City Engineer Don Fiene was asked to provide information regarding roof needs. Councilmember Orvis indicated he would like Council direction on using Fund 125 for some building replacement needs and options for evaluation of the library roof. Finance I Finance Committee committee Councilmember Orvis reported the committee discussed storm drainage utility rates and recommended a full presentation of stormwater rates be presented to the Council. 10. MAYOR'S REPORT lie Mayor Haakenson explained the contractor for the Public Safety Complex was suing the City and the ety I-,o'- m plex architect, and the City counter -sued the contractor and architect. Consequently, if one talks to anyone Edmonds City Council Approved Minutes August 15, 2000 Page 12 associated with the contractor, he would say the architect wrote bad plans and it was the City's fault for accepting the plans. The architect would say the plans were fine but the contractor was not doing a good job. Mayor Haakenson emphasized the bottom line for him was getting the construction project finished. He said he did not accept anything the contractor or architect said at face value and neither should anyone in the City. He encouraged residents with questions to call him or visit his office. He said it was unfortunate when a citizen made claims during the public comment portion of the meeting that they were unable to back up. August 12 Mayor Haakenson thanked the four members of the Council who assisted with interviews for the two Special City vacant director positions. He said the interviews were advertised as a Council meeting but no one from Council ' Meeting / the public chose to attend. After interviewing the candidates for each position, the Council adjourned to Executive an adjoining room to provide him their thoughts regarding the qualifications of the candidates. Session Technically because the Council adjourned to an adjoining room, they held an Executive Session but it Was not announced as an Executive Session. Although no one from the public was in attendance, upon the advice of the City Attorney, Mayor Haakenson explained he was making this announcement. 11. COUNCIL REPORTS Port of Council President Pro Tem White advised the Port of Edmonds was moving forward with their long Edmonds range plans and would be inviting public participation in the near future. He encouraged the public to participate as the Port was a vital entity and controlled a significarit portion of the waterfront. The Port recently resolved an ongoing easement issue. Negotiations with Unocal resulted in relocating the easement from its former location that ran through the stacked storage and prevented boat storage in that area. Councilmember Petso recognized Mrs. Yard's efforts that resulted in staff addressing private versus Recognition public roads. Councilmember Petso pointed out citizen involvement could produce results that were f Citizen p p p Involvement good for all citizens. She recognized the Wassalls, expressing her thanks to them for their involvement related to the proposed fencing on Sunset Avenue. She summarized it was a lot of work to be involved and she appreciated their efforts. With no further business, the Council meeting was adjourned at 9:15 p.m. ARY V KENSON, MAYOR SANDRA S. CHASE, CITY CLERK Edmonds City Council Approved Minutes August 15, 2000 .Page 13 1 AGENDA EDMONDS CITY COUNCIL Plaza Meeting Room - Library Building 650 Main Street 7:00 -10:00 p.m. AUGUST 15, 2000 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 AUGUST 8, 2000 (C) APPROVAL OF CLAIM CHECKS #41307 THROUGH #42926 FOR THE WEEK OF AUGUST 7, 2000, IN THE AMOUNT OF $590,424.54. (D) APPROVAL OF FINDINGS OF FACT REGARDING A PUBLIC HEARING HELD ON AUGUST 1, 2000 ON THE PLANNING BOARD RECOMMENDATION TO DENY THE APPLICATION BY INES ANGIONO- .. FOURNO, ET. AL. TO REZONE APPROXIMATELY TWO ACRES FROM RM -3 TO RM -1.5. THE REZONE INCLUDES THE FOLLOWING PROPERTIES: 533, 539, 551, 553, 558, 560, 561, 563, 565, 570, 572, 580, 582, 588, AND 590 ELM WAY; AND 1122 6.. AVENUE SOUTH (File No. R -99 -231) (E) PROCLAMATION IN HONOR OF NATIONAL HEALTH CENTER WEEK, AUGUST 20 -26, 2000 3. (15 Min.) PUBLIC HEARING ON INTERIM ZONING ORDINANCE NO. 3317, THE TITLE OF WHICH READS: AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, REPEALING SECTION 20.91.030 CONTINUANCES, REENACTING SUCH SECTION 20.91.030 CONTINUANCES AS AN INTERIM ZONING REGULATION, SETTING A PUBLIC HEARING AND FIXING A TIME WHEN THE SAME SHALL BECOME EFFECTIVE 4. (15 Min.) PRESENTATION BY THE EDMONDS ALLIANCE FOR ECONOMIC DEVELOPMENT 5. AUDIENCE COMMENTS (3 Minute Limit Per Person) 6. (20 Min.) DISCUSSION ON SNO ISLE REGIONAL LIBRARY SYSTEM RESOLUTION 7. (5 Min.) REPORT ON AUDIO EQUIPMENT 8. (10 Min.) AUTHORIZATION TO AMEND THE UTILITY RATE STUDY WITH FINANCIAL CONSULTING SOLUTIONS GROUP (FCSG) TO DEVELOP CAPITAL CONNECTION CHARGES FOR THE WATER AND SEWER UTILITY FUNDS ($9,550) 9. (15 Min.) REPORT ON COMMITTEE MEETINGS 10. ( 5 Min.) MAYOR'S REPORT 11 (15 Min.) COUNCIL REPORTS Parking and meeting rooms are accessible for persons with disabilities. Contact the City Clerk at (425) 771 -0245 with 24 hours advance notice for special accommodations. The Council Agenda appears on Chambers Cable, Channel 46. Delayed telecast of this meeting appears the following Wednesday at noon and 7: 00 p.m., as well as, Friday and Monday at noon on Channel 46.