10/10/2000 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES
October 10, 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
Dave Earling, Councilmember
Michael Plunkett, Councilmember
Lora Petso, Councilmember
Dave Orvis, Councilmember
Christopher Davis, Councilmember
ELECTED OFFICIALS ABSENT
Thomas A. Miller, Council President
1. APPROVAL OF AGENDA
STAFF PRESENT
Tom Tomberg, Fire Chief
Robin Hickok, Police Chief
Duane Bowman, Development Serv. Director
Stephen Clifton, Community Services Director
Peggy Hetzler, Administrative Services Director
Doug Farmen, Assistant Admin. Serv. Director
Rob Chave, Planning Manager
Arvilla Ohlde, Parks and Recreation Director
Don Fiene, Assistant City Engineer
Mike Stark, Information Services Coordinator
Sandy Chase, City Clerk
Jana Spellman, Senior Executive Council Asst.
Jeannie Dines, Recorder
COUNCILMEMBER DAVIS MOVED, SECONDED BY COUNCILMEMBER ORVIS, FOR
APPROVAL OF THE AGENDA AS PRESENTED. MOTION CARRIED UNANIMOUSLY.
2. CONSENT AGENDA ITEMS
Councilmember Earling requested Item B be removed from the Consent Agenda.
COUNCILMEMBER DAVIS MOVED, SECONDED BY COUNCILMEMBER ORVIS, FOR
APPROVAL OF THE BALANCE OF THE CONSENT AGENDA. MOTION CARRIED
UNANIMOUSLY. The agenda items approved are as follows:
(A) ROLL CALL
Approve (C) APPROVAL OF PAYROLL CHECKS #31384 THROUGH #31487 FOR THE PERIOD
Payroll SEPTEMBER 16 THROUGH SEPTEMBER 30, 2000 IN THE AMOUNT OF $344,095.87
Checks
ultiple (D) PROCLAMATION IN HONOR OF MULTIPLE SCLEROSIS AWARENESS MONTH,
Sclerosis OCTOBER 2000
Awareness
11117eio#986 (E) RESOLUTION NO. 986 AMENDING THE FEE SCHEDULE ADOPTED BY
W-endingi RESOLUTION NO. 967 ESTABLISHING FEES FOR THE CITY'S PLANNING, PUBLIC
Me Fee I WORKS, BUILDING, AND OTHER FEE STRUCTURES, INCLUDING A SAVINGS
CLAUSE
Edmonds City Council Approved Minutes
October 10, 2000
Page 1
Ord (F) ORDINANCE NO. 3329 AMENDING THE PROVISIONS OF EDMONDS COMMUNITY
Geolologic-
gic-
ally DEVELOPMENT CODE SECTION 20.15B.110, DEVELOPMENT STANDARDS —
Hazardous GEOLOGICALLY HAZARDOUS AREAS
Areas
Item B: Approval of City Council Meeting Minutes of October 3, 2000
Councilmember Earling advised he was absent from the October 3 meeting and would abstain from the
vote.
Approve COUNCILMEMBER ORVIS MOVED, SECONDED BY COUNCILMEMBER PLUNKETT, FOR
10/3/00 APPROVAL OF CONSENT AGENDA ITEM B. MOTION CARRIED UNANIMOUSLY. The
Minutes agenda item approved is as follows:
(B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF OCTOBER 3, 2000
relim. 3. PRESENTATION OF PRELIMINARY 2001 BUDGET
2001
Budget
Mayor Haakenson thanked staff for their cooperation during the budget process, particularly the Finance
Department who gathered the information for the budget book. He expressed special thanks to Executive
Assistant Jeanne Startzman who developed the PowerPoint presentation and Information Services
Coordinator Mike Stark for his technical assistance.
Mayor Haakenson explained he asked staff to begin budget preparation earlier than has occurred in the .
past with an eye toward a five year plan versus focusing only on 2001. He said this allowed Council to
receive the budget three weeks earlier_ than last year and hopefully would allow the budget to be
approved in a more timely fashion than had occurred in the past. He explained in the past, one
Councilmember was asked to serve on the Mayor's Budget Review Committee. This year he requested
two Councilmembers serve on the budget review team, Councilmembers Petso and Orvis. Mayor
Haakenson expressed his appreciation for the time both spent attending meetings and he hoped they
enhanced their knowledge of the budget process.
Mayor Haakenson said although the City did not face I -695 this year, there was another similar initiative
on the ballot, I -722. He commented that although the constitutionality of I -695 was still being
determined by the courts, legal counsel indicated the City could operate as though I -695 did not exist,
and could approve a property tax increase without a vote of the people. The Legislature has already
indicated the $30 license tab fee would remain regardless of the court's decision. Mayor Haakenson said
the preliminary budget assumed I -695 would be ruled legal and enforceable. I -722, if approved at the
polls, would void all taxes and fees passed by the City from July 22, 1999 through December 31, 1999,
requiring the City to refund $1.3 million authorized in that time period. He questioned how fees that
were legally issued during a time period could later be ruled illegal, but acknowledged the courts'would
make that determination. He said if I -722 was approved by voters, a revised budget would be produced.
Mayor Haakenson explained the State, in response to cities that were heavily impacted by the passage of
I -695, passed legislation to return some funding to cities on a one -time basis. Edmonds received
$222,000 in 2000 and $444,000 in 2001. Although this was not nearly the amount received in the past, it
improved the City's long term financial outlook. When the City's five year projections were reviewed
earlier this year, it appeared very dismal. Several events improved that situation, including the State
funding, large building projects that increased permit and development revenues, and phenomenal new
car sales that increased sales tax revenues. While the additional revenue was welcome, Mayor
Haakenson explained it could not be relied upon on a consistent basis. In addition, the City received
Edmonds City Council Approved Minutes
October 10, 2000
Page 2
1
u
approximately $900,000 in unbudgeted MVET as final payment after the passage of I -695. After careful
review of the Finance Department's revenue projections, he agreed to the use of a 4% revenue projection
for the five year plan rather than the 3% used earlier this year. He said the additional revenues created a
rosier basis for the 2001 budget and reflect approximately $1.8 million in "unanticipated revenues" for
2000.
Mayor Haakenson explained another departure from past practices was a determination of departmental
budget baselines. In the past departments submitted budgets using last year's budget with the addition of
the upcoming year's needs. This year, the Finance Department calculated all baseline budgets; if the
department needed additional funds, they were required to complete "a decision package." The Budget
Review Committee then recommended whether to fund the decision package. All departments would be
able to provide their service delivery within the confines of the budget.
Mayor Haakenson explained the 2001 budget did not include a property tax increase. He displayed a
chart illustrating revenue streams and explained the City's 2001 revenue stream would be reduced by
$707,000 from 2000. He reviewed increases /decreases in revenue for 2001 compared to 2000 and the
assumed methodology for each revenue category:
U
18 ¢�
,
Property Tax
No levy increase assumed; $65,000
$65,000
included for new construction
EMS Property Tax
No levy increase assumed; $14,000
$14,000
included for new construction
Sales Tax
4% overall increase based on
$150,000
forecasting model
Utility Tax
6% overall increase
$154,000
Intergovernmental
Loss of MVET — 2001 backfill
$(925,000)
funding received in 2000
Police Services
Expiration of COPS Fast Grant
$(150,000)
while retaining the officers
Building Services
Based on anticipated decline in
$(280,000)
building activity
Fines/Forfeitures
Expected to decline due to 2000
$(55,000)
amnesty receipts
All Other Revenues
$319,700
Mayor Haakenson explained expenses were anticipated to increase at the rate of 6% for 2001. He
displayed and reviewed the following list of significant items contained within the overall 6% increase:
Edmonds City Council Approved Minutes
October 10, 2000
Page 3
Temporary Fire Department Training Officer Overtime
$41,040
Fire ReplacementTund Transfer
$50,000
Building Maintenance Debt Service
$45,000
Paramedic Funding in Fire Department
$200,000
Medic 7 Contract Increase
$14,000
Sno -Isle Contract Increase
$149,000
Public Defender Services
$15,000 .
Increased Litigation Fees
$20,000
Technology Projects
$101,100
Civil Service and Labor Negotiations Costs
$31,600
Endangered Species Act Costs
$95,000
Parks/Recreation Baseline Adjustments
$58,180
Suppression/EMS Baseline Adjustments
$81,460
Police Baseline Adjustments
$11,970
Police Equipment
$9,460
Other Baseline Increases
$177,190
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Mayor Haakenson emphasized there were no new employee positions in the proposed budget. He
commented the $95,000 budgeted for ESA costs was only just the beginning and those costs were
anticipated to "skyrocket" in years ahead.
Mayor Haakenson explained the Budget Review Committee reviewed $1.9 million in decision package
requests and funded only $1.1 million, rejecting $800,000 in decision package requests. The Budget
Review Committee recommended a straight fund transfer and some capital purchases be funded in 2000
rather than in 2001. Unfortunately, the Councilmembers on the Budget Review Committee changed
their recommendation regarding expending the one -time only decision packages in 2000 using
unanticipated revenues. The affect of this change was that several charts, including the five year plan,
were incorrect. Particularly affected was the ending cash balance for 2000 which would now be higher
and the deficit for 2001 would also be larger. The five year plan was relatively unchanged with the
exception of the 2000 ending cash balance and 2001 deficit. Further, the committee recommended that
rather than fund the building maintenance fund via a $500,000 transfer from the General Fund to
repair /replace wiring at the Francis Anderson Center, they recommended the cost be funded via issuance
of debt. Therefore an amount of $45,000 was added to the cost for debt service rather than a one -time,
lump sum transfer of $500,000.
Mayor Haakenson explained there were several capital purchases including $200,000 for additional
Street Fund Transfer and additional capital purchases recommended by the Council Review Committee
for funding in 2000 rather than 2001. He reiterated that recommendation had been withdrawn by the
Councilmembers on the Budget Review Committee. The Budget Review Committee also recommended
the addition of $450,000 in a contingency reserve for potential claims that may occur in 2001, which also
includes Mayor Haakenson's request for $100,000 in potential legal fees for defense of possible claims
due to construction of the public safety complex. He displayed and reviewed a list of capital projects
originally recommended to be funded in 2000 but now would be funded from the 2001 budget:
Edmonds City Council Approved Minutes
October 10, 2000
Page 4
V I •�•.�Ik�R E '.�'
Administration
�i `s"!dd�'"4 9 °3E "#E' `6 �
Computer Network Upgrade
� m `� k
$ 20,000
Building
Vehicle
19,000
Engineering
Cell phones, GIS software
1,450
Parks Maintenance
Vehicle
30,000
Parks Maintenance
Table Saw
4,000
Recreation
Fax Machine and Tables
4,800
Police Investigation
Body Armor, Camera
3,010
Police Patrol
Body Armor, misc. equipment
19,920
Police Training
Small Equipment
7,400
Property Management
Scales
700
Traffic
Motorcycle, software
10,140
wee
_
..
Mayor Haakenson displayed the five year forecast for 2000 — 2005. He commented revenues still
outpaced expenses on the five year plan but with a narrower margin than in the past. He explained the
five year forecast reflected two assumptions that needed to be studied by Council. The first assumption
was a.3% property tax increase each year beginning in 2002. He acknowledged this assumption could
change year to year but the five year, forecast in the budget book reflected a 3% property tax increase for
years 2002 -2005. He pointed out the remaining cash at year end began to dwindle appreciable in 2005
but with "a 3% property tax increase, 2006 began with a $675,000 cash balance.
Mayor Haakenson explained the second assumption was related to-the SnoIsle library. He said for 2001,
funding for SnoIsle would be paid from. the General Fund. He recommended the City annex to the
SnoIsle Library system in 2002 which would require a vote of the people, presumably in the September
primary in 2001. He hoped the Council would take a long term view of funding the library and make a
decision in the weeks ahead so that a committee could be formed to take the issue of annexation to the
public in January, thereby allowing proponents eight months to educate the public regarding this issue.
He. said if the City continued to fund the library from the General Fund, some budget adjustments would
be required in future years.
Mayor Haakenson said the preliminary budget book contained five year. forecasts for the City's other
major funds. He recalled numerous presentations staff had made to the Council over the past year
regarding the need for rate increases in. the street, sewer and stormwater funds, areas that would be
heavily impacted by ESA requirements. He indicated he requested staff delay requests for rate increases
until the I -695 issue was resolved by the courts. "
Mayor Haakenson said the Council .should find the budget book very informative. More detailed
information.regarding revenue and expense projects had been added and the Exhibits section contained
information explaining how the budget was formulated. He reiterated his appreciation for the
participation of Councilmembers Petso and Orvis and looked forward to a speedy review of the budget
by Council. He said staff and he would be available to assist the Council in their deliberations. He said
the public was invited to the first budget workshop scheduled for Saturday, October 21, 9:00 a.m. —
12:00 p.m. on the 3`a Floor of City Hall.
Councilmember Plunkett commented this was the third City budget he had been involved in reviewing
and it was the easiest to understand. He, expressed appreciation for the five year projections, the decision
packages, and department baselines.
Edmonds City Council Approved Minutes
October 10, 2000
Page 5
Councilmember Orvis expressed his appreciation for format of the preliminary budget. He appreciated
no property tax increase was proposed for 2001, that police and fire positions have been.restored, that
Fire Department equipment would be purchased, and an ALS contingency was established to assist with
the transition from Medic 7.
Councilmember Earling recalled there had been a series of budget amendments made in early 2000 that
increased the budget and asked if those had been factored into the preliminary budget. Mayor
Haakenson explained some items were included in the budget as decision packages and others may not
have been included. Administrative Services Director Peggy Hetzler explained any expenditures
approved during the year that were funded via the Council Contingency, had not been included in the
baseline and were presented as decision packages because the Council Contingency Fund was not an
ongoing funding sources. She said adjustments that were not funded via the Council Contingency were
included in the baseline. For example, the Fire Department overtime for acting Battalion Chiefs was a
decision package. Councilmember Earling clarified if Council wanted to include those items, they would
need to be added to the budget. Ms. Hetzler agreed.
Ms. Hetzler explained each department's baseline was developed using their 2000 adopted service levels,
adjusted for increases in salaries and benefits but no other categories were increased for inflation. The
Budget Review Committee considered approximately $1.9 million in decision packages, some of which
were requests for inflationary increases in supplies and small equipment, requests for new positions, and
requests for capital items that were a one -time expenditure. A member of the Budget Review
Committee, Councilmember Petso suggested consideration be given to isolating requests in the decision
packages that were of a one -time only nature and fund those in 2000 using unanticipated revenues. Ms.
Hetzler explained staff determined it made a lot of sense to take this approach (to use the $1 million in
unanticipated revenues to fund the approximately $800,000 in one -time expenditures) so that
expenditures /revenues in 2001 were better "matched." Therefore, rather than a deficit of $1.5 million,
the five year forecast showed a deficit of $770,000 in 2001.
Ms. Hetzler referred to the list of one -time only requests to be funded in 2000, the most significant being
an advance transfer to the Street Fund. She explained an attempt had been made in the past to increase
the General Fund transfer to the Street Fund to address numerous overlay projects but that had not been
accomplished. A decision package was submitted to increase the Street Fund transfer by $200,000, one
of the items originally believed could be advance- funded in 2000 and not reflected in the 2001 budget.
There had also been discussion regarding establishing a contingency reserve for outstanding items such
as the Public Safety litigation, self - insurance medical claims runoff, back - funding of employee
retirement plan, etc. Therefore, it was recommended $450,000 of the unanticipated revenue be used for
these contingencies. The other one -time only expenditures, totaling $120,420 were those smaller capital
purchases Mayor Haakenson previously reviewed.
Ms. Hetzler said the five year forecast showed $770,000 expended in 2000 for items requested as part of
the 2001 budget ($200,000 street fund transfer, $450,000 contingency fund, $120,000 for miscellaneous
one -time expenditures). She said a decision regarding the contingency funding and the Street Transfer
could be made anytime before the end of 2000. If the Council wished to have the $120,000 in smaller
capital purchases made with 2000 cash, authorization would need to be provided now to enable adequate
time to create purchase orders, place orders, and receive and pay for the equipment prior to year end.
She requested Council provide direction regarding whether staff should proceed with ordering these
items or whether they would be considered in the 2001 budget.
Edmonds City Council Approved Minutes
October 10, 2000
Page 6
Councilmember Plunkett asked if a decision was required immediately. Ms. Hetzler answered a decision
was needed tonight and the purchase orders would be placed on next week's Consent Agenda. Without a
decision tonight; the purchases likely would not be completed by year end.
If a decision was required tonight, Councilmember Orvis preferred to consider the purchases as part of
the 2001 budget.
Councilmember Petso said she still did not think funding the items totaling $120,000 with unanticipated
revenue in 2000 was a bad idea. She was surprised next Tuesday would not be soon enough for the
Council to make a decision but was glad the Council would have more time to consider how to fund the
remaining $650,000.
Councilmember Plunkett observed it may be more logical to fund these expenditures in 2000 and asked
whether it made any difference from an revenue /expenditure point of view. Ms. Hetzler stated that if the
five year forecast was used to establish a trend, placing the one -time expenditures with one -time
revenues illustrated a more normalized operating environment. She said only the Administrative
Services computer network upgrade .needed to be addressed immediately, the other items could be
delayed until 2001. She explained Sysco loaned the City some equipment to keep the network from
failing but now want their equipment back. She said delivery would require 9 -10 weeks and if it was not
paid for by year end, it would be included as a 2001 expenditure, requiring an amendment to the 2001
budget.
COUNCILMEMBER PLUNKETT MOVED, SECONDED BY COUNCILMEMBER PETSO, TO
AUTHORIZE STAFF TO EXPEND $20,000 FROM UNANTICIPATED REVENUE FOR THE
ADMINISTRATIVE SERVICES NETWORK UPGRADE.
Councilmember Davis expressed concern with approving a $20,000 expenditure without any
information. Ms. Hetzler explained the upgrade included hubs, routers and switches for the City's
network. She said the purchase would be made via the State contract. The total was $58,000 but the cost
was split 50150 between the General Fund and the Combined Utility. She also had sufficient funds
remaining in her technology budget to fund the additional $5,000. She explained in the 2000 budget, the
Council authorized the purchase of a new financial system, building permit system and parks /recreation
system. When those software packages were installed, the City's network could not handle the increased
traffic. A diagnostics team was hired to review the configuration between the Public Safety building,
City Hall, Treatment Plant, Public Works, etc. to determine why the system could not perform. They
learned the network had been adequate for the smaller .programs but the more powerful software
exceeded the network's speed capacity. They also learned there was a problem with the City's firewall
and the City's server was being bombarded with data packets from Norway when'users sent their traffic
via the City's server to divert it to others, allowing them to be anonymous senders. The proposed
$58,000 would ensure traffic was routed efficiently, firewalls installed properly, etc.
Councilmember Plunkett emphasized this was part of the ongoing networking that began several years
ago. Ms. Hetzler agreed, stating it was part of the five year plan. Staff had been optimistic that the
upgrade would not be necessary until 2001 or 2002.
MOTION CARRIED UNANIMOUSLY
Ma r Haakenson adjourned the Council to Committee meetings at 7:45 p.m.
ARY AAKENSON, MAYOR SANDRA S. CHASE, CITY CLERK
Edmonds City Council Approved Minutes
October 10, 2000
Page 7
AGENDA
EDMONDS CITY COUNCIL
Plaza Meeting Room - Library Building
650 Main Street
7:00 -10:00 p.m.
OCTOBER 10, 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 OCTOBER 3, 2000
(C) APPROVAL OF PAYROLL CHECKS #31384 THROUGH #31487 FOR THE PERIOD SEPTEMBER 16
THROUGH SEPTEMBER 30, 2000, IN THE AMOUNT OF $344,095.87.
(D) PROCLAMATION IN HONOR OF MULTIPLE SCLEROSIS AWARENESS MONTH, OCTOBER 2000
(E) PROPOSED RESOLUTION AMENDING THE FEE SCHEDULE ADOPTED BY RESOLUTION NO. 967
ESTABLISHING FEES FOR THE CITY'S PLANNING, PUBLIC WORKS, BUILDING, AND OTHER FEE
STRUCTURES, INCLUDING A SAVINGS CLAUSE
(F) PROPOSED ORDINANCE AMENDING THE PROVISIONS OF EDMONDS COMMUNITY DEVELOPMENT
CODE SECTION 20.1513.110, DEVELOPMENT STANDARDS — GEOLOGICALLY HAZARDOUS AREAS
3. (60 Min.) PRESENTATION OF PRELIMINARY 2001 BUDGET
ADJOURN TO COMMITTEE MEETINGS
The City Council Committee meetings are work sessions for the City Council and staff only. The meetings are
open to the public but are not public hearings. The City Council will meet separately as committees in
different meeting rooms as indicated below.
4. COMMUNITY SERVICES /DEVELOPMENT SERVICES COMMITTEE
(Large Plaza Meeting Room, Library Building, 650 Main Street)
(A) DISCUSSION ON RIGHT -OF -WAY USE NEAR 16008 75TH PLACE WEST (20 Min.)
(B) DISCUSSION ON LAND USE REGULATION OF ANIMALS (20 Min.)
(C) REVIEW OF RESEARCH ON PARKING STANDARDS (15 Min.)
(D) DISCUSSION ON STREET STANDARD AMENDMENTS FOR RESIDENTIAL STREETS (15 Min.)
5. PUBLIC SAFETY COMMITTEE
(Small Plaza Meeting Room, Library Building, 650 Main Street)
(A) DISCUSSION ON DIVE TEAM BOAT, MOTOR AND TRAILER (15 Min.)
6. FINANCE COMMITTEE
THE FINANCE COMMITTEE WILL NOT BE MEETING THIS EVENING.
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.